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1 I MONTH LY BUSINESS REVIEW OF THE FEDERAL RESERVE BANK OF DALLAS CHAS. C. HALL-W. J. EVANS Assistant Federal Reserve Agents C. C. WALSH Chairman and Federal Reserve Agent (Compiled Apl'il 15, 1936) =Volume 21, No.3 Dallas, Texas, May 1, 1936 = This copy is released for pub-A '1 licatlon in afternoon papers- pn 30 DISTRICT SUMMARY THE SITUATION AT A GLANCE Eleventh Federal Reserve Dlstl'lct Change From February March 1936 gank debits to Individual accounts (at 18 cities) $788,295,000 ~~:~~:!'bn:n~tol~~nSsal~" '~~;;;b'~'~'''b~~'kB''~t''~~d' ................... . a of month.................................................................... $ 205,606 Beserve bank ratio at end of month.................... 63.6 0/0 cUlldlng permit valuation at larger centers. ..... $ 5,737,481 ~nunerclal failures (number) ................................ 25 o rnmerclal failures (liabilities) ............................ $ 219,000 II productlon (barrels) ............................................ 88,263,750 + + 7.5% 16.9% + $118,788 .8 points 25. 7% 1 + 22.1% 11.0% ---------------------------------The distribution of merchandise at wholesale and retail in this di strict was well sustained during the past month. Department store sales in larger cities reflected a seasonal gain of 17 per cent, as compared with the previous month, and were 9 pel' cent larger than in the corresponding month 1ast year. Buying at wholesale in ' most reporting lines reO ected belter than average seasonal changes and was sub~tantially larger than in March a year ago. Debits to Individual accounts at banks in principal cities were 8 per cent larger than in February, and exceeded those of March, 1935, by 16 per cent. The deficiency of moisture over the major portion of the district during the past month continued as a serious draWback to farming operations and crop growth. Early planted row crops made poor to only fair progress except l~ favored localities and the cotton crop over a large area eIther has been dry seeded or planting operations delayed }lending an improvement in the moisture situation. The Department of Agriculture, in its April 1 report, stated that the \vheat crop deteriorated greatly in March and that the abandonment of acreage was expected to be heavy in the extremel y dry areas. Commercial reports indicate that further deterioration occurred during the first half of April. Rainfall, which was heavy in scattered localities, occurred over a considerable area of Texas at the middle of April and will be of material benefit temporarily, but heavy rains are urgently needed throughout the district. Range and livestock conditions in most areas have held up fairly well and are much better than a year ago, but moisture is needed to insure continued growth of range vegetation. Federal Reserve Bank loans to member banks reflected a further moderate expansion between March 15 and April 15, but on the latter date they were smaller than a year ago. Federal Reserve note circulation remained fairly stable during the past month at about the $75,000,000 level. The reserve deposits of member banks at the Federal Reserve Bank showed considerable flu ctuation during the month and the total on April 15 was $8,925,000 lower than on March 15. The loans and investments of member banks in selected cities reflected a noticeable increase between March 11 and April 8 and on the latter date were substantially larger than a year earlier. The daily average of combined net demand and time deposits of member banks rose from $771,136,000 in February to $778,553,000 in March. Construction work continued active during the past month. While the valuation of building permits issued at principal cities fell 26 per cent under the heavy February volume, it exceeded the total for March, 1935, by 287 per cent, and was about double the March average for the preceding six years. The figures for two cities again constituted a large percentage of the total, yet those for most other reporting cities reflected substantial gains. BUSINESS An active demand for merchandise in wholesale channels of distribution, as reflected by sales of firms reporting to this bank, was in evidence during March. The sales of dry goods, gl'~ceries and hardwru'e showed larger than average seasonal gaIns from February to March and hardware was the only Wholesale Trade line in which the comparison with a year ago was less favorable than similar comparisons in February. Business during the first quarter of 1936 in most reporting lines was substantially larger than during the corresponding period of 1935. Collections in March were generally larger than in the previous month. This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) MONTHLY BUSINESS REVIEW 2 The buying of dry goods at wholesale reflected a counter· to·seasonal gain of 4,.8 per cent as compared with the previ· ous month and was 15.0 per cent larger than in March, 1935. The improvement was fairly general over the district as a majority of reporting firms showed increases over both comparative periods. Inventories at the close of March were about the same as a month earlier, but were substantially lower than a year ago. Collections in March were 17.1 per cent greater than in February. The sales of farm implement firms in March declined 3.9 per cent from those in February, which was somewhat less than seasonal, but showed a gain of 71.9 per cent over those in the same month last year. The latter comparison was the most favorable rep orted for any month since last August. Stocks carried by reporting firms at the end of March were materially higher than a year ago. A gain of 8.7 per cent over the previous month was registered in March collections. Following the decline in February, the business of whole· sale drug firms in this district reflected a seasonal increase of 4,.2 pel' cent over the previous month and was 29.6 per cent better than in March, 1935. There was a fairly general increase in business throughout the district. Collections were slightly larger than in the previous month. The demand for groceries at wholesale in March showed a slightly greater than average seasonal gain. Sales of reo porting firms were 5.7 per cent larger than in February and exceeded those of the corresponding month last year by 3.9 per cent. The increase in business was well distributed over the district. There was an increase of 1.4 per cent in March collections as compared with those in February. Inventories at the end of March were moderately larger than those a month earlier or a year ago . A further increase of 15.7 per cent in the sales of hard· ware at wholesale was registered in March, as compared with the previous month. There was a gain of 18.3 per cent over March, 1935, and the volume of business for the first quarter of 1936 was 20.3 per cent larger than in the same period a year earlier. An improvement in business was registered by practically all reporting finns. There was a slight decline in collections. CONDITION OF WHOLESALE TRADE DURING MARCH. 1936 Percentage of increase or decrease InRa tio Net Snles Mnr .• 19 36 Net Sale. Jan. 1 to date compared with compared with Mnrch 1935 Februnry same period 1936 la. , yenr + + Groceries .............. 3.9 Dry goods .............. +15.0 Farm implem ents +71.9 Hardware ......... . + 18.8 Drugs ................ . +29 .6 + + + 5.7 4.8 3.9 15.7 4.2 + + Stock. March. 1936 compared wi th March 1935 Feb. 1936 + 4.1 - 16.7 +46.1 + 4.6 +22.6 .8 9.3 + 66 .8 + 20.3 + 25.0 or collections during MMCh +2.4 +.4 - 9.0 - 1.6 +4.8 to ~ccou nt' :md notes outstnnding on Feb. 29 80.2 85.3 8.7 48. 9 62.4 Consumer buying at department sto~'es .in principal cities of the Eleventh DistrIct rel'lected a further increase of 16.9 per cent over the previous month and registered a gain of 9.2 per cent as compared with the corresponding month last year. This bank's adjusted index of department store sales, which makes allowance for average seasonal changes a~d Lhe variable date of Easter, was 90.5 per cent of the 192?' 25 average in March, as compared wiLh 91.2 per cent. 111 February, and 85.5 per cent in March last year. Sales dUrIng the first quarter of the current year averaged 12.8 per cent higher than those in the same period of 1935. Retail Trade The merchandise stocks of reporting firms on March 31 exceeded those of a month earlier by 7.9 per cent and were 3.9 per cent in excess of those on the corresponding date a year ago. The rate of stock turnover during the three months of 1936 was .79 as against .73 in the same period last year. The collections on regular accounts reflected a decline in March, but payments on installment accounts showed a~ improvement. The ratio of March collections to reg ula1 accounts outstanding on March 1 was 39.5 per cent as co~' pared with 41.0 per cent in February, and 38.6 per cent 10 March, 1935. BUSINESS OF DEPARTMENT STORES Total sales (percentage) : i.1:;~~: }:~:: ~~::;~:~~g :f:~ ¥e~~~~r;~\~ii6::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: January 1 to March 81. 1986. compared with same period last year ....................................... cril:~;c~11~8~e~~~~::eeJ ~ith March. 1985..................................................................................... . March. 1986. compared with February. 1986 ................................................................................ . January 1 to Mal'ch 81; 1986. compared with same period last year...................................... . Stocks on hand at end of month (percentage) : March. 1986. compared with Mm·ch. 1985 ...................................................................................... March. 19S6. compared with F ebruary. 1986 ................................................................................. Stock turnover (rate) : Rate of stock turnover in March. 1935.. ..................................................................................... .. Rate of stock turnover in March. 1986 ............................................................................................ Rate of stock turnover January 1. to March 81. 1985 .................................................................. Rate of stock tumover Janual'y 1. to March 81. 1986 ................................................................. Ratio of March collections to open accounts receivable and outstanding March 1. 1986....... . Ratio of March collections to installment accounts receivable and outstanding Mal'ch 1. 1986....................................................................................................................................... .. Indexes of depal·tment store sales: Unadjusted-February. 1986 ........................................................................................................... Xdiudjt'!d~Fe~.~~~~. m~"""""" . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Adjusted-Mnrch, 1986.._ ~~:~~~~~:::::~:~:::::_:.::::::::~:~::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: .. Indexes of department store stocks: Unadjusted-February. 1986 Xdi:jt'!d~Fe~'~~~~' m~" ":::'-'-::::::::::'-'-'-::'-:'-'-'-'-'-'-'-'-'-'-:::::::'-'-'-:'-:::'-'-:.-.-:.-:::.-.-.-:::.-::.-.-.-.-.-.-.-.-.-.-.-.-:.-.-.-.-.-:.-:::.-.-.-:::.-::.-:.-:.-:.-.-.-:.: Adjusted-March, 1986..... ::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: :::::::::: Snn + + + Antonio 16.0 80.0 16.7 Pailas + 7.3 + 6.2 + IS.6 Ft. Worth + 18.4 + 18.2 + 15.1 Houston 6.5 + 17.1 + 10.0 + 8.5 + 6.4 + 15.1 8.0 + + 11.1 + 14.2 + 10.8 + 17.5 + 14.6 + 14.6 + 42.4 + 18.6 - + + + + 8.5 5.7 .81 .30 .88 .91 89 .4 + 3.3 6.2 .21 .25 .59 .69 85.2 + 2.0 + 18.3 .24 .26 .66 .77 41.8 3.6 5.2 .29 .82 .80 .86 47.0 19.2 Olhers + 7.0 + 28.9 + 9.0 6.6 + + 81.0 + 9.8 + + 4.9 9.5 .28 .28 .61 .64 35.5 22 .4 Totol Di.'I. + 9.2 + 16.9 + 12.8 + =I: =I: 9.4 16.8 18.9 8.9 7.9 .26 .28 .78 .79 89.5 16.1 16.9 11.5 89.0 98.8 101.1 94.2 78.9 89.5 95.1 98.2 72 .6 88.6 85.4 88.0 68.7 88.1 76.7 85.7 76.6 86.9 91. 2 90.5 57.0 59.7 59.4 59 .1 62.6 66.4 65.2 64 .5 89.4 45 .5 42.4 45.5 48.5 49.5 48.0 46 .7 67.6 61. 6 60. 0 59.8 - MONTHLY BUSINESS REVIEW Commercial Failures The number and liabilities of 'commercial failures in the Eleventh Federal Reserve District during March showed a further decline from the previous month, but were larger than in the corresponding month of 1935. Dun & Bradstreet, Incorporated, reported that 25 firms defaulted in March involving liabilities of $219,000, as compared with 8 26 failures in February owing $281,000, and 19 insolvencies in March last year with an indebtedness of $130,000. During the first quarter of the current year there were 90 commercial failures reported with liabilities totaling $839,000, as compared with 71 defaults in the same period of 1935 with a combined indebtedness of $850,000_ AGRICUL TURE Crop Canditions The deficiency in soil moisture continues as a serious drawback to agricultural operations and growth of crops in this district. Except in a few limited areas rainfall since March 1 has been light and the top-soil is becoming very dry. ~urthermore, freezing weather and drying winds caused conSIderable damage to tender crops in northern portions of the district. A heavy general rain is urgently needed throughout the district to stimulate crop growth and to aid farm work. . Small grains have held up fairly well bUl deterioraLIon is evident in most areas and commercial reports indicate that it is occurring at a rapid rate in northwest Texas where the dust storms have been severe and frequent. The DepartInent of Agriculture, in its April 1 report, estimated the production of winter wheat in Texas at 19,057,000 bushels as against 10,010,000 bushels in 1935. The Oklahoma crop Was placed at 35,050,000 bushels as compared with a production of 33,080,000 bushels last year. In New Mexico the estimated production was 1,776,000 bushels, whereas only 700,000 bushels were harvested a year ago. While the April 1 estimates for these states are higher than last year's harvest, they are sharply lower than the 1928-32 average. The planting of cotton has proceeded in the older cotton sections where soil conditions permitted. In many places the crop has been dry seeded and general rains will be needed for germination. In south Texas cotton has come up to a good sland and reports indicate that the plants have a good ?olor. Chopping is well under way in the extreme south and IS advancing northward. . The Department of Agriculture reported that the condi~Ion of most vegetable crops in south Texas reflected an I~provement during March. The cold waves during the Wmter caused very little damage to early spring plantings and as subsoil moisture is generally ample, crops have made good progress. The harvesting of winter crops, such as beets, carrots, cabbage, peas, and spinach, is still active. The movement of snap beans, potatoes, strawberries, and onions is well under way. The production of onions in south Texas was estimated by the Department of Agriculture on A.pril 1 at 2,9J.4.,000 sacks, or nearly double the 1935 harvest, due both to higher pel' acre yields and the larger acreage. The estimated production of oranges and grapefruit in Texas on April 1 remained unchanged from that of a month earlier. Livestock Range and livestock conditions in this district showed little change during the past month as the improvement in some areas was offset by lhe deterioration in the extremely dry sections. Rainfall s!nce March 1 has been very light and there are some sechOllS which have had no precipitation. The Department of A.griculture reported that conditions in northwest Texas and portions of eastern New Mexico are becoming critical due to the high winds, frequent dust storms, and the availability of very little range feed. Unless relief is obtained it may be necessary to move cattle to market or to other areas for pasturage. While grass and weeds in other sections have started and will provide grazing for the present, heavy general rains are needed to insure continued growth of range vegetation. Livestock in most areas have held up well and are in very good flesh, but supplemental feeding has been necessary in drouth areas_ In south and southeast Texas cattle are in good condition and more grass fat cattle are available than usual. The Department of Agriculture reports that in Texas prospects are for a very good calf crop and for a record lamb crop. It was also stated that goat shearing is about completed and most of the mohair has been sold at satisfactory prices. Sheep shearing has become general. The Deparlment of Agriculture estimated the condition of cattle ranges in Texas on April 1 at 76 per cent of normal, which was the same as a month earlier and 15 points higher than a year ago, but 5 points lower than the ten-year average. Sheep and goat ranges improved 1 point in March and the 78 per cent condition on April 1 was 14 points above that on the same date in 1935. The condition of cattle declined 2 points in March but that of sheep and goats improved 1 and 2 points, respectively. All classes of stock were in much better condition on April 1 than a year earlier. Ranges and livestock in New Mexico and Arizona declined slightly during the month, but remained in generally good condition. 111ovements and Prices The March supplies of cattle, hogs, and sheep at the Fort Worth market were substantially greater than a year ago, and those of hogs and sheep were materially larger than in the previous month. Cattle receipts showed a noticeable decline from February to March. Arrivals of calves reflected a small decline from both comparative periods. FORT WORTH LIVESTOOK RECEIPTS (Number) Onttle...................... .. Cnlves ....................... Hogs......................... Sheep ........................ March 1936 44.974 20.797 59.144 89.744 March 19H 85.861 20.916 85.591 25.958 Ch:lIlge over yea.r + 9.618 119 +28.558 +18.791 February Change over 1936 month 58.871 - 8.897 21.244 447 42.000 +17.144 22.084 +17.660 COMPARATIVE TOP LIVESTOOK PRIOES (Dollnrs per hundredweight) Beef ateera.............................................................. Stocker steers ...................................................... .. Heifers nnd yearllngB. ...................................... .. Butcher cows ....................................................... .. Cnlves ..................................................................... .. HogB. ...................................................................... .. Sheep ...................................................................... .. Lambs ...................................................................... March 1936 $ 8.50 6.75 8.50 6.00 7.50 10.80 6.00 9.50 March 19H $11.26 6.75 12.00 7.00 8.60 9.60 5.2fi 9.00 February 1936 $ 8.25 7.25 9.25 6.00 7.00 10.85 6.00 9.50 4 MONTHLY BUSINESS REVIEW Prices for most classes of cattle on the Fort Worth market were firm to higher during the past month, but some weakness in the market developed toward the middle of April. Hogs sold on a generally steady market and on most days the best offerings sold at $10.00 or above. Sheep and lamb prices evidenced an upward trend and toward the mi~dl: of April some lambs cleared at $10.00 for the first tIm since early in January. FINANCE Operations of the Federal Reserve Banle A further gradual expansion in the borrowings of member banks at the Federal Reserve Bank occurred during the past month. These loans amounted to $282,000 on April 15, as compared with $178,000 on March 15, and $359,000 on the corresponding date last year. There was a slight increase in advances to established industrial and commercial businesses for working capital purposes between March 15 and April 15, but the total of $1,741,000 on the laLter dale was lower than a year earlier. Commitments to make such advances showed little change during the month. Invesll11ents in United States Government securities totaled $95,000,000 on April 15, which was $10,000,000 higher than on March 15, and $18,525,000 larger than a year ago. The reserve deposits of member banks with the Federal Reserve Bank declined sharply during the last half of March, but they had risen to $127,583,000 on April 15. This amount, while $8,925,000 smaller than on March 15, was $14,788,000 higher than on the corresponding date in 1935. The actual circulation of Federal Reserve notes showed little variation during the month, but continued materially higher than a year ago. CONDITION OF THE FEDERAL RESERVE BANK (In thousands of dollars) April IS, April IS, Total cash reserves............... _............................ . Discounts for memher hanks ........................... . Other hills discounted ....................................... . Industrial advances .............................................. Commitments to make industrial advances. Bills bought in the open markeL ................. United States Government securities owned.. All other investments ....... _.............................. . Total earning assets ........................................... . Memher bank reserve deposits........................ Federal Reserve notes in actual circulation .. Condition of Member Banles in Selected Cities 1936 $148 ,197 282 None 1,741 584 133 95,000 5 97,161 127,583 74,525 1935 $ 97,861 359 None 1,776 None 188 76,475 3 78,751 112,795 47,246 March IS, 1936 $148,697 178 None 1,713 687 18H 85,000 10 87,084 136,508 75,060 The loans, investments, and deposits of reporting member banks in selected cities reflected a substantial increase during the four-week period ending April 8. Following the March 15 Treasury financing the investments of these banks in the direct obligations of the United States reflected a sharp increase, the total on April 8 being $173,216,000, as compared with $146,692,000 on March 11, and $168,24,9,000 on April 10, 1935. On the other hand, their investments in securities fully guaranteed by the United States Government were reduced $15,062,000 between March 11 and April 8 and on the latter date holdings were $2,94,8,000 lower than a year earlier. These banks increased their holdings of other stocks and bonds $74,9,000 during the four-week period and the total on April 8 was $6,539,000 higher than a year ago. Loans on securities rose $501,000 during the four weeks, but were still $5,053,000 lower than on April 10, 1935. "All other" loans (largely commercial) amounted to $147,071,000 on April 8, which was $2,738,000 higher than four weeks earlier, and $8,678,000 above lhose a year ago. The net demand deposits of these banks rose $8,980,000 during the four weeks but their lime deposils declined $4,16,000 during the sa~e period. Reserve deposits with the Federal Reserve Bank declined $6,722,000 between March 11 and April 8. OONDITION STATISTICS OF MEMBER BANKS IN SELECTED CITIES (In thousands of dollars) AprilS, April 10, March II, 1936 193) 1936 $146,602 United States securities (owned) .................. $173,216 $168,249 Securities fully guaranteed hy United 49,874 States Government (owned) ....................... . 34,812 37 ,760 All other stocks, bonds, and securities 46,961 (owned) ........................... _................................ . 41,161 47,700 42,886 Loans on securities ............................................. . 48,890 43,387 144,338 All other loans ...................................................... 138,898 147,071 187,169 'fotal loans .............................................................. 186,783 190,408 857,464 Net demand deposits ......................................... . 366,484 818 ,650 118,860 Time deposits.......................................................... 117,944 121,953 84,758 Reserve with Federal Reserve Bank. ............. 70,485 78,036 Bills payable and l'ediscounts with Federal None Reserve Bank. .._...... __ ............____ .. __ ..... __ ..... __ ... __ .. None None Deposits of Member Banks There was an increase of $7,4,17,000 between February and March in the com' bined net demand and t~me depos~ts o~ member banks in this district. While the tune depOSIts 0 these banks decreased from $197,078,000 in February to $195804000 in March their net demand deposits rose frolTI , " $574058000 in the former month to $582,74,9,000' tl1e 111 , latter, month. Most of the increase in net demand depos1'ts occurred at reserve city banks. DAILY AVERAGE DEPOSITS OF MEMBER BANKS (In thousands of dollars) Combined 'fotal Reserve City Bonks Country Bank. Time Net Demond Time Net Detnnnd Time Net DemAnd Depo.it. Deposits Deposits Deposits Deposit. Deposit. Mal'., 1985 ........ $81,875 $605,672 $198,394 $294 ,281 $112,019 $811,891 81,697 Apr., 1935 ........ 606,848 193,849 299,168 112,252 307,186 May, 1986 .... __ .. 81,396 603,787 194,524 296,770 118,128 807,017 80,415 June, 1935........ 609,260 198,268 808,686 800,625 112,838 81,64 3 July, 1986.. __ .... 618,475 808,892 194,395 112,752 809,583 82,764 Aug., 1986 __ ... __ . 630,786 194,680 826,406 111,826 804,380 82,434 Sept., 1985 .__ ..... 667,887 194,060 264,422 318,466 111,616 82,984 Ocb., 1986 ........ 581,626 198,927 325,245 256,380 110,998 82,97 4 Nov., 1985 ...... __ 589,245 194,841 256,900 882,345 111,867 82,843 Dec., 1986.. ______ 586,599 244,891 840,708 111,682 194,526 86,714 J an., 1986.... __ .. 586,980 241,981 195,765 846,049 110,051 87 ,414 Feb., 1986........ 674,068 245,268 197,078 328,805 109,664 87,890 Mar., 1986........ 682,749 196,804 245,616 387,284 108,414 - Debits to Individual Accounts Debils to individual accounts at banks. il1 leaclinO' centers il1 this district dunng MarchI:> aggregated $733,295,000, reflecting a seasonal increase of 7.5 per cent over the previous month and an expansion of 15.6 per cent DEBITS TO INDIVIDUAL ACCOUNTS (In thousands of dollars) M arc h 1936 Mnrch 1935 Pctg. chance ove r year Feb. 1936 Pctg. chnn~c over mont Abilene.... __ ........... __ .. __ ..... 6,828 5,676 +22.4 6,623 + 8.0 Austin. ................ __ .......... 24,462 33,461 - 26.9 22,969 + 6.~ BeaumonL..... __ ............. 22,405 18,543 +20.8 22,241 ++ 8:0 Oorsicanl1. __ .................. __ 2,691 2,676 +.6 2,611 Dallas.............................. 223,142 170,171 +81.1 192,981 +10'J EI Paso .... ______ ...... __ ....... __ 22,623 22,915 - 1.8 22,942 - 1Fort WOl·th.................... 71,840 62,845 +18.5 67,225 ~:~ Galveston. __ ...... __ ..... ____ __ .. 22,573 20,725 + 8.9 21,283 + 6.6 Houston. .. _..................... 176,985 144,744 +22.3 165,970 + 3.5 Port Arthur .......... __ ....... 7,057 6,019 +17.2 6,817 + 9.9 RosweIL ____ .................... 2,518 2,214 +18.6 2,287 12 San Antonio.................. 59,474 61,880 - 3.9 60,208 '0 Shreveport ...... __ ..... ____ ... 36,909 31,127 +18.6 80,486 Texarkana> ....... __ ........... 6,094 4,700 +29.7 6,658 + 7.6 Tucson. __ ......................... 9,995 10,776 - 7.2 9,287 + 38 Tyler__ .............................. 12,196 10,861 +17.7 11,807 .6 Waco____......... __ ........ __ ....... 18,169 12,979 + 1.4 12,577 + 4'9 Wichita Falls................. 12,866 12,880 + 3.8 12,977 -' TotaL ...... __ ..... 733,295 "'6S4:oBi +15.6 681,834 + 7.5. "Includes the figures of two banks in Toxarkana, Al'kallsllH, locllted 1\ the Ei\rhth DistrIct. :t :t i:7 6 MONTHLY BUSINESS REVIEW as compared with March, 1935. The figures reported at four cities were smaller than those a year ago, and at three cities Lhey were slightly less than in February. A large decrease in the amount of outsLanding bank acceptances was reported by banks in this district during March. The Lotal outstanding on March 31 was $94,8,785, as compared with $1,985,134 a month earlier, and $1,843,270 on Lhe same date last year. In both cases the reduction occurred Acceptance Market in the volume of acceptances executed against the domestic shipment and storage of goods. Savings While the amount of savings deposits on Deposits hand at 125 reporting member banks in this district on March 31 was 0_3 per cent smaller than at the close of February, it was 2.7 per cent larger than on the same date last year. The total reported was $152,090,555, which compares with a volume of $152,488,4<23 a month earlier, and a total of $148,093,905 on March 31 a year ago. SAVINGS DEPOSITS Mnrch 31,1935 Morch 31, 1936 Numb.r - -- - - - - of fe- Number of porting savings Amount of savings Number of savings Amount of savings F.brunry 29, 1936 Percentage change over year in Number of tr.lvings Amount of allving! bnnks d.positors d.posit. d.positors d.po. its snving. d.posit. d.positors d.posit. 3 8,768 $ 3,606,819 8,891 $ 8,463,791 + 1.6 9,066 $ 3,612,899 9" 77, 389 24,742,096 77,026 26,061,446 - 1.2 77,204 24,828,887 2 12,492 6,280,216 11,988 6,296,289 +17.6 12,868 6,192,866 3 8 ~, 8 6S 11,688,187 84,667 10,848,762 + 6.4 84,704 11,689,821 16,082 10,626,112 16,8 69 10,012,978 + 6.1 16,921 10,486,484 4 66,461 29,866,263 65,819 30,669,659 - 2.3 66,488 80,458,007 11" 2 6,664 2,268,118 6,819 2,061,660 +10.0 6,654 2,215,882 6* 18,722 17,849, 502 17,417 16,187,008 + 7.2 18,261 17,850,161 8 22,513 10,469,044 22,401 11,234,077 - 6.8 22,867 10,277,699 3 10,678 6,632,581 10,929 6,367,480 -11.6 10,581 5,778,970 3 6,322 8,294,388 5,958 2,867,781 +15.8 6,329 3,818,545 76" 52,262 26,674,830 ~ 24,158,189 +10 .4 62,381 26,689,862 TotaL............................ 125 882,986 $152,090,555 829,898 $148,093,906 + 2.7 882,278 $152,488,423 ~ Only 8 bnnks in Dnllns, 10 in Houston, 5 in Snn Antonio nnd 69 in "nll others" l'eported the number of savings depositors. Percentage chlnae over month In ..ving. d.po,ill .2 .S + .1 .6 + .9 - 1.9 + 2.4 0.0 + 1.9 - 2.4 .7 ±.2 - .3 APRIL DISCOUNT RATES Dnllns Rato chnrged customers on prime commercial pnper such as that now eligible for rediscount under the Federal Reserve Act ....................................................................... ll.ate charged on loans to other bnnks secured by bi\ls receivable...............................•... Rate on lonns secured by prime stock exchange or other current collnteral (not including loans placed in other mnrkets through conespondent banks) : Demand ........................................................................................................ ..............• ..... R Time ................................................................................................................•................... It nt..! chal'ged on commodity pnper secured by warehouse receipts, etc •........................ nt..! on cattle lonns...............................................................................................•....................... EIP .. o Fort Worth 8- 7 5- 8 5 4- 7 4- 6 3-7 4Y.i-6 6-8 6 5- 6 4-8 2-8 8 5-8 5-8 7-8 6-8 4-10 5-8 5-8 5-10 3- 7 8-7 8-7 5-10 6 6- 8 6-8 7-8 Houston San Antonio Waco 6-8 6-8 3- 7 8 INDUSTRY The receipts and crushings of cottonseed and the production of all products at oil mills located in Texas reflected a further seasonal decline during March, but they continued in larger volume than in the corresponding 1110nth of 1935. The de· Uland for cottonseed products, as measured by shipments during the month, likewise evidenced a decline from February, but with the exception of cake and meal, which showed a small recession, shipments were greater than in March last year. Activities at Texas mills during the first eight tnonths of the current season continued well above those in the same period of the previous season. Cottonseed Products Operations at crushing establishments located throughout the United States witnessed a decline as compared with both the previous month and the same month a year ago. Shipl11ents of products from these mills were also seasonally s~aller than in February, and while the movement of crude 011 Was greater than in March, 1935, that of cake and meal, hulIs, and linters reflected declines ranging from 3 to 5 pcr cent. Stocks of crude oil on hand March 31 at both Texas and United States mills were seasonally smaller than the holdings a month earlier, but they remained considerably larger than a year ago. Supplies of all other products were also less than those on hand February 29, and at all United States mills they continued below the holdings on the same date last year. STATISTICS ON COTTONSEED AND COTTONSEED PRODUCTS Tex"s Unit.d States August 1 to Mnrch 31 August 1 to Mnrch 31 Thlo •••• on Last scason Thls ••n. on LASt teas on Cottonseed received nt mi\ls (tons) ....................... 953,248 704,707 8,645,545 8,821,479 Cottonseed crushed (tons) . 918,817 768,922 8,584,771 8,184,776 Cottonseed on hand Feb. 29 (tons) .................. 56,888 200,849 48,446 859,864 Crude oil produced (lbs.) .. 262,062,562 219,749,269 1,070,424,607 988,478,976 Cake and meal produced (tons) ................................ 425,699 860,546 1,599,887 1,446,287 Hulls produced (tons) ......._ 249,191 208,664 918,658 821,286 Linters produced (running bnles) ................ 181,695 162,775 802,608 718,904 Stocks on hnnd Mar. 81 : Crude oil (pounds) .............. 28,976,268 80,670,719 11,287,858 42,826,106 Cnke and menl (tons) ......... 59,277 59,027 285,958 809,460 Hulls (tons) .......................... 74,078 45,275 180,888 156,189 Linters (running bnles) .... 48,189 49,905 156,888 178,810 Textile Milling The domestic consumption of cotton turned upward during March, as is usual in that month, and reflected an increase uf 6.2 per cent over that in February. Consumption con- 6 MONTHLY BUSINESS REVIEW -------------------------------------------------------------------------------------------------------tinued well above that in the same month of 1935, and was in greater volume than in any corresponding month since 1929. There were 54.8,913 bales of cotton consumed during the month, as compared with 516,649 bales in February, and 482,373 bales in March last year. Consumption during the first eight months of the current season, which totaled 4,072,759 bales, . was 11.7 pel' cent greater than in the like period of the previous season. Stocks of cotton on hand at consuming establishments on March 31 were seasonally smaller than a month earlier, but 19.6 per cent greater than on March 31, 1935. Supplies held in public storage and compresses continued noticeably below those a year ago . COTTON CONSUMED AND ON HAND (Bales) Cotton.growlng states : Cotton consumed .............................. Cotton on hand March 81 inConsuming establishments.......• Public storage and compresses .. United States: Cotton consumed ............................. Cotton on hand March 81 inConsuming establishments......... Publlo storage and compresses., Mnrch 1936 March 1935 464,984 389,218 August 1 to March 31 This season Lnst season 548,918 8,417,106 The receipts and exports of cotton at the ports of Houston and Galveston in March, following the trend of the past several months, were seasonally smaller than in the previous month, but continued considerably larger than in the corresponding month a year ago. During the current season, August, 1935, through March, 1936, foreign shipments of cotton from these ports totaled 2,569,198 bales, as compared with exports of only 1,961,345 bales in the previous season. Stocks of cot· ton on hand March 31 at both Houston and Galveston were seasonally smaller than a month earlier, but at the latter port they continued above those a year ago. A slight decline from February, which is customary for that month, was witnessed in foreign exports of cotton from all United States ports during March, but the volume of shipments continued well above that in the like month of 1935. There were 404.,741 bales of cotton exported during the month, as compared with 406,022 bales in February, and 317,798 bales in March, 1935. Exports of cotton amounted to 4,814,360 bales during the eight months of the current season, which represents an increase of 34.8 per cent over those in the same period of the previous season, but a substantial decline as compared with the shipments in that same period of other recent years. COTTON MOVEMENTS THROUGH THE PORT OF GALVESTON (Bales) Mnrch 1936 March 1935 August 1 to March 31 This season Last season 47,808 128,828 25,109 94,692 1,509,984 1,140,587 594,000 For Great Britain...................................................................... For France.............................................................................., For other foreign ports ............................................... ,............ August 1 to March 31 This season Last .easo n Receipts........................................................................................ Exports: United Kingdom ..................................................... . France.u.................................................................... Italy........................................................... ,............... Germany.......................................................... ,......... Other Europe................... ,...................................... . Japan ..•..................................................................... All other countries................................................. , Total foreign ports................................................................... . Stocks held at all United States ports, March 81 ............. . 500 700 15,400 6,512,285 4,108,560 1,086,817 662,111 681,894 291,998~ 286,812 871.1 628,670 264,000 747,737 581,661 1,220, 700 1,209,16~~ 263,170 ~ 4,814,860 8,572,680 2,101,844 2,826,278 SPOT COTTON PRICES Middling Basis (Cents per pound) March, 1936 High Low New york ................................................................ New Orleans........................................................... DaHas...................................................................... Houston .................................................................... Galveston ................................................................. 11.72 11.84 11.24 11. 78 11.68 11.06 11.09 10.66 11.05 11.06 ¥~~~,:~~:~ ~~"Jd~p·ot;;:::::::::::::::::::::::::::.:.::. ;:.:::::. :.:.. .:.:.. ::. . 576,~~~ 800 1,500 27,700 1,800 488,465 Total.................................................................,.......... 594,000 464,765 11.72 11.68 11.22 11.60 11.66 A large increase over both the previoU S month and the same month last year was reflected in the output of crude oil in the Eleventh District during March. Production aggregated 38,263,750 barrels, representing a gain over February of 3,785,650 barrels, due both to the longer month and to a further substantial e~' pansion in the daily average yield. The total output In March, 1935, was 34.,335,600 barrels. Field operations turned noticeably upward last month, when the number of new wells completed was 1,24.7 as against 787 in February. Producers numbered 916 in March, as compared with 616 in the previous month. Their combined initial yield was reported as 1,725,127 barrels, which compares with 1,153,. 763 barrels in the earlier month. Petroleum The daily average production from fields in Texas ro~e from 1,071,200 barrels in February to 1,111,571 barrels In the subsequent month, and the latter figure compares with an output of 1,037,300 barrels daily dw-ing March last y~ar. All areas participated in the increase over the preced1ng month, but in the case of north Texas and east Texas the average output was smaller than a year ago. Material gai~S over the previous month and the corresponding month In 1935 were registered in New Mexico and north Louisiana. OIL PRODUCTION (Barrels) Incre.se or dec~~:6 over February, March, 1936 Totai D.lly Avg. March 31, 1935 April IS, 1936 --------------------------------------- 891,890 988,118 464,765 COTTON-GALVESTON STOCK STATEMENT (Bales) March 31, 1936 August 1 to March 31 This season La.st seuo n 1,640,045 l,022'm 1,428,611 1,02 3'64 4 481,210 78 9, SEASON'S RECEIPTS, EXPORTS, AND STOCKS OF COTTON AT ALL UNITED STATES PORTS (Bales) 1,116,018 7,788,846 Cotton Movements Recelpts. .................... ,......... Exports ................................ Stooks, March 81................ 80,877 111,910 Receipts,.............................................. 51,244 Exports ................................................ 128,116 Stocks March 81........................... ,.... ............. . 8,647,859 1,884,894 6,570,182 Mnrch 1935 March 1936 874,217 7,588,669 4,072,759 482,878 2,918,588 1,112,177 6,452,712 COTTON MOVEMENTS THROUGH THE PORT OF HOUSTON (Bales) North Texas ......................... West Texas........................... East Texas ........................... , South Texas ........................., Texas CoastaL...................., Total Texas,....................., New Mexico ........................ .. North Louisiana ............ ,.. ,., Total District................... 8,720,450 6,194,150 15,191,850 2,269,950 7,082, 800 Total Dally Mg· I1~'m 6' 644 t 84,458,700 1,876,850 1,928,200 120,015 199,811 490,044 78,224 228,477 1,111,671 60,544 62,200 -I- 220,960 -I- 170,800 .J.-- 88,268,760 1,234,815 +8,785,650 +46,416 886,900 808,050 1,172,750 + 284,150 + 797,060 +8,898,900 S' 024 11'727 ~ +40,811 t till 7 MONTHLY BUSINESS REVIEW MARCH DRILLING RESULTS Com pleti ons ~orth T exas ...................... i~~l:iiE~.:.:.:.:.: .:.:.: .: : : .:.: .:.: exas CoastaL ................. Total T exas................... ~ew Mexico ....................... orth Louisiana. ............. March total., district ... . Fcbrua ,'Y totals, dlstt'icb Producers Gas Well. 276 151 293 81 8 104 F:lilu res 15 3 2 9 4 160 106 268 231 65 1,142 61 64 830 46 41 916 616 279 2 7 48 80 1.401,236 86,659 237,232 288 141 33 1,247 787 101 42 23 78 35 Inltl. 1 Production 36,244 168,848 1,021,016 149,447 26,682 1,725,127 1,163,763 than at the end of February this year or March last year. PRODUCTION, SHIPMENTS, AND STOCKS OF PORTLAND CEMENT (In thousands ot barrels) Percentage Mnrch, 1936 Production at T exas mills 686 Shipments from Texas milla .................................. 667 Stocks at end of month at Texas mills ....... _........_ 666 change over February, 19l5 1916 March, January 1 through Percentage Mar.3I, change over yelr 1936 +92 .4 +42.7 1,170 +47.5 + 70 .8 +40.8 1,849 +69.6 - 16.6 - 8.6 CRUDE OIL PRICES April 10, Allfil 12, 1916 ~CJ<ns Coastal (34 gravity and above) .................................. $1.22 North T exas (40 gravity and above) ..................................... 1.08 orth Louisiana (40 gravity and above) ............................ 1.10 (Oil statistics compiled by The Oil W eekly, Houston, Texas) 1935 $1.12 1.08 1.08 Building Cement The production and shipments of cement . at Texas mills reflected a sharp increase 1~ March and were the largest for any corresponding month Sll1ce 1930. Production rose to 535,000 barrels in March, as compared with 375,000 barrels in February, and 278,000 bunels in March, 1935. Shipments from these mills during the month amounted to 557,000 barrels, which was 40.3 per cent larger than in the previous month and 70.3 per cent greater than a year ago. Stocks on March 31 were smaller Construction activity, as evidenced by the valuation of building permits issued at leading cities in this district, continued on a considerably larger scale during March than in other recent years. Substantial declines from the previous month occurred at some cities which reported a large February volume, but sizable gains were shown at eight of the fourteen reporting cities. The lotal valuation amounted to $5,737,481, which compares with the figure of $7,720,358 reported in February, and an aggregate of $1,481,883 in March last year. All except three of the reporting cilies participated in the increase over a year ago. The volume for the first three months of the current year exceeded that of the corresponding period of 1935 by 173.3 per cent and was the largest for any similar period since 1929. BIDLDING PERMITS March,I936 Morch, 1935 11 Vnluntion 54 ,111 24 1,230 112,784 184,642 1,164,418 87,808 660,848 148,240 2,670 ,890 136,601 228,780 190,988 54,938 12,868 162 125 70 438 49 96 114 276 91 1,669 170 83 55 Vnluation $ 28,77 8 221, 254 37.350 54,437 213,864 19,7 12 88,160 27,306 818 .768 24,403 244,877 100,273 61,927 41,289 TotaL. ........ ..... 2,402 $6,787,481 8,870 $1,481,883 No. ~:!~~:~~:: : : : : : :: : : tH n~lraus ChristL............ 5~~ sort Arthur................... S~n Antonio....... .......... W reveport................ ..... co .......................... ..... chita Falls .............. 122 270 137 ~~~~~i:j:-; Ii! wf 44 No. 88 Pctg. chnngc vnluution over year + 88.1 9.0 202. 0 147 .2 444.6 89 .2 +649.7 +424.6 +763.0 + 466.7 8.4 +90.4 - 11.3 - 68.9 + i + +287.2 February, 1936 No. Vnluation 26 $ 48,295 466,432 142 78 102,232 78 257,060 347 2,149,091 68,171 50 118 284 .97 5 74 20,01 3 387 3,961,61 2 11 2 48,344 191 149,012 92 186,660 34 89.896 10 18,676 1,789 $7,720,858 January I to March 31 Pctg. change 1936 193) valuation Valuation V.luatlon over month No. No. 82 $ 60,884 90 $ 140,740 + 26.0 414 1,497,007 464 2,183,647 - 47.1 434,864 100,485 817 310 10.3 114,006 617,132 168 247 - 47.7 4,312,784 1,172 818,988 - 45.8 1,868 77,669 132,667 115 173 - 29. 8 1,628,228 418 271 517,089 +181.9 188,814 297 262,212 281 + 616.7 7,826,428 692 1,288,882 - 86.1 1,048 182 209,864 80,27 8 303 +180.5 862,681 1,966 508,804 + 50.2 656 411,791 447 309,452 802 39.7 105 122,687 72 105,016 + 87.7 96 44,428 120,699 - 30.8 ~ + + - 26.7 5,786 $17,729,885 6,278 $6,486,994 Pctg. change nluation over period +188.1 - 29.8 +882.8 +858.6 +426.6 + 70.7 +195.6 - 28.0 +470.9 + 160.8 + 71.2 88.1 + 16.7 - 68.2 + + 178.8 -------------------------------------------------------------------------------------------------------------- 8 MONTHLY BUSINESS REVIEW SUMMARY OF NATIONAL BUSINESS CONDITIONS (Complied by the Board of Governors of the Federal Reserve System, April 24, 1986) Production and employment at factories increased from February to March, while output of minerals declined. There was considerable expansion in retail trade. cember and January, when the dollar volume of such contracts was relatively high_ DISTRIBUTION PRODUCTION AND EMPLOYMENT Retail trade which had been reduced in January and February by u'nusually severe weather, incr~ased conside1 ably in March. Sales at department and varIety stores an by mail order houses serving rural areas showed. a mord than seasonal increase. The number of new automobIles so f was also larger than in February. Freight-car loadings 0 most classes of commodities increased from February to March by more than the usual seasonal amount. Total loadings declined somewhat from the relatively high level of the three preceding months, however, reflecting a sharp reduction in shipments of coal. The Board's combined index of industrial production, which includes both manufacturing and mining and makes allowance for seasonal changes, remained unchanged in March at the February figure of 94 per cent of the 19231925 average. Production of automobiles rose sharply in March to a total of 425,000 passenger cars and trucks and continued to increase during April. There was a seasonal increase in output of steel in March, followed in the first three weeks of April by a rapid rise in activity. Estimates of the rate of production in that period averaged around 67 per cent of capacity as compared with the rate of 59 per cent reported for March. Production of cement and lumber increased more than seasonally from February to March, and activity at meat-packing establishments and at silk mills also increased, although a decline is usual in these industries at this time of the year. There was little change in output at cotton textile mills, while at woolen mills activity decreased by more than the usual amount. Production of anthracite and bituminous coal showed a substantial reduction from the relatively high level of February and this decrease accounted for the decline in total output at mines. Factory employment increased by more than the usual seasonal amount from the middle of February to the middle of March, and payrolls showed a larger increase. Employment increased in the machinery industries, at saw mills, and at establishments producing wearing apparel. There was a decrease in the number of workers at plants producing rubber tires and tubes, where a strike was in progress in the middle of March. At automobile factories the number employed declined slightly, while payrolls showed a considerable increase. The value of construction contracts awarded, according to figures of the F. W. Dodge Corporation, showed a seasonal increase from February to March. Awards for residential building increased seasonally and contracts for other private construction advanced to the highest point since 1931. Value of awards for publiclyowned projects continued considerably smaller than in De- d COMMODITY PRICES The general level of wholesale commodity prices, which had declined somewhat between the third week of Februa1:Y and the middle of March, showed relatively little chan~e 1:1 the following four weeks. Retail prices of foods dechne during March. BANK CREDIT Excess reserves of member banks, after declining sharply in the last half of March, increased by about $300,000,000 in t~e first three weeks of April to a total of $2,640,000,000. ThIS increase, like the preceding decline, was due chiefly to operations of the Treasury. After the middle of March Treasury balances at the Federal Reserve Banks were built up through the collection of taxes and receipts from the sale of neW securities, and in April these balances were drawn upon to meet expendilures. Partly as a result of these expenditur.es, deposits at reporting member banks in leading cities, wh1~h had declined in March, increased in the first half of ApI?I, when total loans and investments of these banks also mcreased. From February 26 to April 15 total loans and investments of reporting member banks showed an increase of about $800,000,000, reflecting increases of $380,000,OO? in investments, of $180,000,000 in loans to brokers and dea ,; ers in securities, and of $240,000,000 in so-called ."other d loans, which include loans for commercial, industrIal, an agricultural purposes.
