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Monthly Business Review OF THE FEDERAL BANK RESERVE OF DALLAS ==7========================================================== Volume 23, No.3 This copy is r elel1sed for pub- ApI'. 29 Dallas, Texas, May 1, 1938 -=- Iication in Ilfternoon pl1per&- DISTRICT SUMMARY h Construction activity in the Eleventh District showed a ~ arp upturn in March and exceeded that in the correspond~ng month last year by a wide margin. Petroleum production bncreased moderately in March and the first half of April, trut continued smaller than a year ago . Department store thade .showed a smaller expansion from February to March an IS customary at this season. On the other hand, there whas some improvement in the demand for merchandise at W olesale. BUSINESS The distribution of merchandise through department Mores in principal cities of this district declined further in harch, after allowances are made for average seasonal ~Oanges and t~e variable date of Easter. The tincrease of M· 3 per cent In total dollar sales between February and arch Was less than seasonal and a decrease of 2.1 per ce1t Was registered as compared with March last year. The ~n avorable comparison with a year ago, how~ver, is due 't the f.act that Easter was three weeks later thIS year than \ Was In 1937. This bank's adjusted index of department ~ oM sales stood at 104,.3 per cent of the 1923-1925 average i~ arch as compared with 107.2 per cent in February and ~ .6 per cent in March last year. Although the index is 2.7 pOJn~s higher than a year ago, it is lower than that for fuy lDtervening month. The dollar volume of sales during . e first quarter of this year exceeded that in the correspondIng month last year by 2.7 per cent. froThe inventories of department stores, which had declined . m October through January, showed larger than average ~creases in February and March. At the close of the latter th , however, they were 3 per cent smaller than a year ~hr ler. From the accompanying chart it will be seen that e growth in stocks since the close of 1933 has not been commensurate with the increase in sales, and as a conseq~ence department stores have been turning their stocks at a. aster rate. Despite the larger volume of stocks maintained SIn~e the fall of 1936, the rate of stock turnover during this el"Iod has been af the highest level on record. 1\1: The rate of collections on open accounts outstanding on th arc? 1 was 39.5 per cent, which was about the same as c at In February. Collections on installment accounts inlI~easehd from 14,.0 per cent in February to 15.6 per cent in 1Vlarc . °I. P sh The buying of merchandise at wholesale, which had F wn a steady decline from September last year through ru,ary this year, increased more than seasonally in March. ex~: lmprov:ment extend~d to all re~orting lines. of. tr~de of machInery and eqUIpment and IS probably mdicatIve v t Ie fact that retailers generally have reduced their init:~or~es to the point where replacement buying on numerous a as , IS necessary to accommodate consumer demand w!lich s pr lently has been well sustained. Although the combmed th es .of all reporting firms were about 5 per cent below th ose March last year, this decrease was somewhat smaller Co t .e av~rage decline of 8 per cent for the first quarter. in r:ICh?ns' Increased in March, both in actual amount and atl0n to accounts outstanding. b rho It Tl h The number of commercial failures in this district, as reported by Dun & Bradstreet, Incorporated, declined during March, but liabilities increased for the third consecutive month. There were 19 failures during the month with liabilities aggregating $313,000. AGRICULTURE The favorable weather prevailing in this district during March brought about a further improvement in agricultural and livestock conditions, but the cold wave and other adverse weather conditions in the second week of April caused some damage to growing crops. The wheat crop suffered the most severe damage, though other crops were injured in varying degrees by the low temperatures, high winds, and heavy rains. The seeding of corn has been completed in most sections, and good progress has been made with the planting of cotton in the southern hal£ of the distriot. Con_ siderable replanting of both corn and cotton will be necessary in some areas. The April 1 estimate of wheat production in Texas was placed at 39,862,000 bushels, which compares with a harvest of 4.1,690,000 bushels in 1937, and a ten-year (1927-1936) average yield of 29,984.,000 bushels. The estimates for Oklahoma and New Mexico were somewhat larger than last year's crop and nearly double the ten-year average production. However, these estimates do not reflect the losses resulting from the adverse weather conditions since April 1. The Department of Agriculture reported that damage to wheat was most apparent in the area immediately east of the Caprock where a large portion of the crop was headed or in the boot. Nevertheless, the crop was injured to some extent in all the principal wheat-growing sections of the district. South Texas truck crops have made rapid progress and are now moving to market in volume. The production of Bermuda onions and Irish potatoes is expected to be larger than in 1937, but the prospective production of snap beans is lower than last year's harvest because of the injury caused by the strong cold winds in A~Ip. The Te~as peach crop was in better than average condItIOn on Apnl 1, and losses from the subsequent cold weather are not expected to be severe in the important producing areas. The production of grapefruit in Texas is exceeding earlier expectations. The DEPARTMENT STORE INDEXES ~ ADJUSTED rOR IN~·IUS SALES AND STOCKS SEASONAL. VARIATION AvtUCt. 100 PER C£NT C£NT I 30 I 20 120 110 100 I' 70 80 50 ~ rv-' "', ~ 'M 00 80 ~ ,AA ~.'''' '.1 SALES ) ...\/\. V' '\...... A V'V' It\rN IA r\ 1(0 100 U 00 eo ,~,.. ,0l1~V , I~~b "~ J ''VVV'' Y. " ~ STOCK ~'-f/ 30 1034 1035 1838 1037 80 50 40 U~33 70 103~ This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) 2 MONTHLY BUSINESS REVIEW present estimate of 11,000,000 boxes is 800,000 boxes above that a month ago and compares with a harvest of 9,630,000 boxes in 1937. According to the Department of Agriculture, the condition of Texas ranges was 86 per cent of normal on April 1, 1938, the highest for that date in seven years. Moisture conditions are favorable and ranges over most of the State are furnishing good grazing. Range and feed conditions are above the average in New Mexico and feed conditions are improving rapidly in Arizona. Livestock generally came through the winter in better than average flesh and with good grazing available both cattle and sheep have made rapid gains in . recent weeks. Department of Agriculture reports indicate that most of the losses of livestock from the cold wave were ap· parently confined to recently shorn sheep and goats and new-born calves and lambs. The spring movement of cattle is expected to be considerably smaller than the heavy movement a year ago; shipments last spring were the heav· iest in thirteen years. Prospects indicate a large calf crop and a record lamb crop. Receipts of livelltock at the Fort Worth market increased more than seasonally from February to March. Although marketings were smaller than in March last year, they were well above those in the corresponding month of other recent years for all classes of livestock except hogs. Livestock prices, after having risen to the highest level of the year toward the middle of March, followed an irregular course in the subsequent thirty days. The cash income of farmers in this district from the sale of principal farm products declined seasonally from January to February, but it continued 6 per cent greater than a year ago. This increase is accounted for by sustained receipts from the sale of crops, particularly cotton, as income from the marketings of livestock and livestock products was 4, p~ cent less than in February last year. Government benefit payments, which totaled $4,,166,000 in February were only about one-half as large as in the corresponding month last year. Total farm income, including Government payments, totaled $40,700,000 in February, as against $56,200,000 in January and $43,200,000 in February, 1937. The general level of prices received by farmers in the United States, which had declined sharply in the preceding seven months, showed only a slight recession during the WHOLESALE AND RETAIL TRADE STATISTICS ~---Pcrcontage ohange in: - ----"Ratio Mar. colleotions Net sales Stooks· to accounts outatand, ~ ingMarchl Mar., 1938, from Jan. 1 to Mar., 1938, from ,~----...., Mar., Feb., Mar. 31, 1938 Mar., Feb., Install1937 1938 from 1937 1937 1938 Regular mont Retail trade: Totalllth Dist . . - 2.1 +20.3 + 2.7 Dallas .... .. .. .. - 2.1 + 8.2 + 2.1 Fort Worth ...... .6 +26 .8 + 1.8 HOllston ......... - 4.7 +15.4 + 3.1 San Antonio . .... .2 +35.9 + 6.9 Other cities .... .. - 2.6 +35 .6 + .9 Wholesale trade: t Machinery, equipment & supplies (exo'ptclootflcal) -33.5 -21.3 -36.6 -11 .2 Dry goods ....... - 4.4 +19 .2 Groceries ........ - 6.3 + 9.1 - 8.1 Drugs ........... + 2.9 + 5.3 + 5.2 Hordware .... ... - 8.6 +14.1 - 6.2 Eleotrioal supplies - 2.6 +35.7 - a.3 ·Stooks at oloso of month. tWholesale trado data compiled by United States - 3.0 +11.7 + 2.7 +12.9 1.5 8.9 + .2 +21.0 - 3.0 + lO .7 -13. 1 + 7.9 39 .5 30.2 36.6 30.0 42.2 40.3 ':":'25:7 ':":"id 3s:7 + - - 6.5 +lO.8 1.4 + + 2.0 0.0 + .8 15.6 17.7 12 .0 iil:i 20.5 98 .0 76.1 57 .2 Departmont of Commeroo. INDEXES OF DEPARTMENT STORE SALES AND STOCKS (1923-25 average =100) With seasonal adjustment Without seasonal adjustment Total Eleventh Dist.. Dallas .............. Fort Worth .......... Houston .......... ... San Antonio.. .. . • • .. Sales-Mar., 1938 1937 lO4 . 3 101. 6 107.3 102.9 107.4 100.6 08.2 08 .1 94.3 88.5 Stooks-Mar., 1938 1087 66.5 67.8 70.8 68.7 60.9 63.7 40.8 46.7 55.7 59.9 Sales-Mar., 19a8 1937 97. 0 99.6 105.2 106.0 102.0 100.6 92.3 97. 1 90.5 89.4 Stocks1038 68.5 71.5 62.7 49.8 59.0 Mar., ' 1937 69.8 69.4 65.6 46.7 63 .5 month ended March 15. According to the Bureau of Agricultural Economics, the index stood at 96 per cent of the pre-war level on March 15, which was 32 points lower than at mid·March last year. The average prices received by Texas farmers for most commodities showed slight increases between February 15 and March 15. FINANCIAL Two important measures affecting the banking system were put into effect at the middle of April. The first was the desterilization of approximately $1,4.00,000,000 of Treasury gold. In effecting this change the Treasury issued gold cer· tificates in the amount of gold desterilized to the Federal Reserve banks and the Treasury received deposit credit on the books of the Federal Reserve banks for the same amount. The second was a reduction in the reserve re,quirements of member banks. In announcing this change the Board of Governors of the Federal Reserve System issued the following press statement regarding its action: "As a part of the Government's program for encouragement of business recovery, the Board of Governors has reduced reserve requirements on all classes of deposits for all member banks, effective at the opening of business on April 16, 1938. By this action excess reserves of member banks will be increased by about $750,000,000. "Reserve requirements in effect prior to April 16, 1938, and thereafter are shown in the following table: Classes of momber banks and of deposita Demand delJosits: Central reserve oity banks .. .......... . ...... . ..... .. ..... . Reserve oity banks .............. . . , ........... ..... .. •. . . Country banks ...... . ... ,' ................ . ....•.....•.... Time deposits: All olasses of member banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Prior to April 16 (Por cent) 26 20 14 6 Beginning April 16 (Per oent) 2214 17 ~ 12 5 .. Reflecting the effect of the desterilization of gold, the total cash reserves of the Federal Reserve Bank of Dallas increased by approximate;ly $50,000,000 between April 13 and April 14" and the United States Treasurer General Account rose by a corresponding amount. Reserve balances of member banks in the Eleventh Dis' trict declined considerably after the middle of March, a~ in the first half of April they averaged about $5,400,0 lower than in the first half of March. As required reserves CASH FARM INCOME FROM SALE OF PRINCIPAL FARM PRODUCTS AND GOVERNMENT BENEFI'f PAYMENTS (In thousands of dollars) ____ February, 1938 - - - v - - - - - Total reeeipts - - - - - Receipts from: GovernJan. 1 to Feb. 28 ~----~~ ment February February r ----Crops Livestook- paymeats 1938 1037 1088 1037 Arizona . ..... . 1,814 1,510 103 3,526 2,108 9,340 6,58~ Louisiana .. ' .. . 2,098 1,003 23 4,024 0.069 12,513 13'005 394 849 127 1,370 .2,896 4,796 6,. New Mexioo .. . 2,555 5,567 445 8,567 0,853 17,407 18,878 Oklahoma ... . . Texas ... .. . .. . 11,686 8,130 3,378 23,203 22,270 52,845 ~ 17,077 4,166 40,690 43,205 96,001 93,731 Total. . . . . 18,547 -Inoludes receipts from salo of Iivestook and Iivestook produots, SOURCE: Unitod States Departmont of Agrioulture. FORT WORTH LIVESTOCK RECEIPTS (Number) Maroh March Change over February Cbange ovet month 1938 1037 year 1038 +14,9~ Cattle...... ..... ..... ... 48,234 53,492 - 5,258 33,311 + 2,2 Calves. .. . .. .... ... .. .. . 23,073 24,586 - 1,513 20,815 ~ho~~p:::: :::: ::::::::::: ~t~~~ ~~:~~g =l~:~~~ ~~:~~~ COMPARATIVE TOP LIVESTOCK PRICES (Dollars por hundredweight) Maroh Maroh 1938 1937 $0.25 Beef steors . ...... . ........ . .................... . $11.00 8.25 7.50 Stooker stoers .... ... . .. . ..................... .. . . Hoifers and yearlings ........ .................... . 11 .00 9.50 7.00 Butoher oows ..... .. ......................... .. . . 6.00 8.25 8.00 Calves .... ... . . ...... . .. .... .. .... .... ... ... ... . 8.90 10 .10 12 .50 8.50 f~:b; : :::::::::::::::::::::::::: :: : :::::::: ::: : +10,191~ +35,9 FebruarY 1038 $7.75 6.85 8.75 5.40 8.25 8.50 7.26 8 MONTHLY BUSINESS REVIEW bhowed only a moderate declin~, excess reserves .decreased y about the same amount. Dunng the latest penod excess ~~serves amounted to approximately $4,2,000,000, or about per cent of required reserves; however, if the: new reserve requirements had been in effect during the period, exceh~ reserves would have amounted to about $60,700,000, w lch would have been about 50 per cent of required reserves. Total earning assets of this bank decreased $2,511,~O ?etween March 15 and April 15, owing chiefly to the rebUChon in holdings of United States Government securities rought about by a redistribution of the System's open Farket holdings among the several Federal Reserve banks. b ederal Reserve notes in actual circulation declined further :1,675,000 during the period and on April 15 the total ~h 78,524,,000 was $10,354,000 below the circulation on e corresponding date of 1937. There was a further liquidation of $2,500,000 in loans d~ w~ekly reporting member banks in leading cities of this Istr.lct between March 9 and April 13, reflecting chiefly a c0'dtlUued decline in advances for commercial, industrial an agricultural purposes. Although this rCjCession is in cdntrast with a nonseasonal increase at this time last year, vance:s continued in substantially larger volume than in / SprIng of 1937. The investments of reporting banks, : tel' declining about $15,600,000 from the middle of Sep200ber l~st year to the middle of March this year, rose $5,,000 In the five weeks ended April 13. This increase bas hainl~ in their holdings of obligations fully guaranteed y t e Umted States Government. On April 13 total loans and'll1vestments were approximately $2,700,000 greater than fi .lYe weeks earlier and a year ago. Following a substantial dnc;~ase in the preceding four weeks, deposits at these banks ec med $16,000,000 in the five weeks ended April 13, and o~ ~at date they were $5,000,000 less than at the beginning e y~ar. While all classes of deposits par ticipated in the d:c m.e 111 the latest five-week period, the decrease in total POSIts since January 1 was brought about by the sea:hna~ w~thdrawals of interbank deposits. Coincident with the. eclIne in deposits and the increase in earning assets, .e reserves with the Federal Reserve bank and balances ~~O~ 0domestic banks showed an aggregate reduction of $18,, 00 between March 9 and April 13. M: Re~ecting declines in individual deposits, incident to the th:rc!~.15 tax payments, and in balances of domestic banks, b dal~y average of gross demand deposits at all member hanks 111 this district declined $17,600,000 during March; owever, time deposits increased further by $1,800,000. f Dhbits to individual accounts at banks in principal cities o. t e Eleventh Fede,ral Reserve District showed consecut Ive d I' of 1 ec Ine~ from a year ago durin~ the ~rst three montIIS nou 938, .wlth the decreases becorrung slIghtly more prod b~ced m each succeeding month. For the first quarter ye Its were 3 per cent smaller than in the same period last c;~r. ~he decrease from a year ago in debits at all reporting I les m the United States was 23 per cent during the first qUarter. l classification the value of contracts for industrial building comprised about one-half of the total. The total volume of contracts awarded in the Eleventh District during the first quarter of 1938 exceeded that in the same period last year by 35 per cent, whereas, there was a decline of 18 per cent CONDITION OF THE FEDERAL RESERVE BANK (In thousands of dollars) April 15. April 15. 1937 1938 $178.844 Total oll8h reserves .. " , , .. ... . , . , , . , . ' .. ' , .... , . , $220,631 626 202 Disoounts for member bank., . " , , , , , .... , , , . . , , , .. 1.230 908 Industrial advanoes" ., .... , . , . , , . , . .. , .... , . , , , , . 87 10 Dills bought in tho open market, ,. , . , , , , . , .. , .... ' . 97.485 97.283 United States Govornmont seourities ......•. ' , . , , . , . 6 None All other investmonts, , , , . , . , .. , . , , , , , , . , .. , , ... , . 99,440 98,499 Total earning assets, . , , , , , . , , . , , ... , , , . , . , .. , ... , 108.507 180.916 Member bank reserve doposits, , , . . , . .. . , , , ... , •. , , 88,878 78,524 Fedoral Roservo notes in aotual oiroulation, .. , . , . . , , 444 268 Commitmonts to mako industrial advanoes, , ... , , . . . Maroh 15. 1938 UOO.281 313 013 16 09.768 None 101,010 184,159 80.100 268 ili d \. · h Th I~DUSTRY. ' enth e ~al~e o~ constructIOn contracts awarded III the Eleva d Dlstnct Increased sharply from February to March th Mas 79 per cent higher than in March last year; in fact, nl~nthar.ch total was, with one exception, the largest for a?y Ov m nearly se:ven years. The most pronounced gams re ~~ bo~h comparative periods occurred in awards for nonCOSI entIal bUilding and for public works; nevertheless, ntracts for residential building increased for the third C onsec IVe UDIe . U l' month and were only slightly l~wer ~han th.e v,o 1111 March last year. In the non-resIdentIal bUIldmg Maroh 31, 1938 Peroontngo ohango in ~_ _ _ _ _--.., savings doposits from Numhor of r Numhor of Amount of r~-------" roporting savings savinj\S Maroh 31. Feh, 28. hanks dopositors dopo."ts 1937 1938 Boaumont""" ...... ,.. 3 0.618 $ 3.746,814 + 3.8 + ,6 Dallll8 ........... " , .. .. 8 00,08~ 26 ++ 8" EI PlI8o................. 2 10,05," ' Fort Worth" ......... ". 3 37.704 13.142,799 + 4,8 + ,4 Galveston....... ........ 4 18,361 11,417,880 + 4,0 +.6 Houston"""", .. ,..... 10 71.465 28,489,187 + 1.4 + .03 Port Arthur .. , ......... , 2 5,022 2.580,000 +10,1 -.5 SanAntonio .. , .. ".,.. .. 5 23.037 17,320,254 + 7,1 + ,3 Shroveport,............. 3 23.602 11.320,922 - 1.9 + 1.3 6 Waoo.... .. .. .. ....... .. 3 9,230 4,827.758 - 6'4 -.9 W'ehita Falls 3 7.122 3,426,711 + 3, +.8 All others ... :::::::::::: 70 58.502 28,868,049 + 5,0 +. 0 + .8 Total. ...... .. .. 110 370,775 $159.418.935 + 3.3 'm'm n -n DEBITS TO INDIVIDUAL ACCOUNTS (In thousands of dollars) Maroh Maroh Potg,ohange February Potg.ohange 1938 1037 ovor year 1938 over month 'I S 0.054 $ 8,474 + 6,8 $ 7.957 +13.8 Abl ono ........ , .. .. , .. · 34.170 20.477 + 15 ,0 28.736 +18,0 Austhl. , . , , , , . , .... , .. , . 25,988 25,250 + 2,7 23,339 + 11 .1 Beaumont ........ ,. , .. ·· 2848 +21 1 Corsioana .... " ,........ 3,450 3,879 - 11,1 • ' DaUII8 ... .... ..... .. , .. . 238,343 255,053 - 0.6 210,053 +13. 5 EIPlI8o................. 27,520 30,000 - 10 .0 20,800 + 2.7 FortWorth", ..... , .... , 78.117 85.400 - 8,0 08,107 +14.7 20,822 20.030 +,7 24,444 + 0.7 Galveston .............. · 211.078 225,083 - 0 .3 103,004 +9.7 Houston .. , .......... · .. · 9,094 0.565 + 4,5 8.518 +17.3 PortArthur ............ · 3799 3,217 + 18. 1 3,208 +18.4 Roswoll ........... · .... · • 213 73328 79 57525 +174 San Autonio ....... , .... , ~~'~11 48:375 0:0 48:609 +:1 Shrevoport ....... , .. , .. · 0'778 8,276 +18, 1 6.142 +50,2 'l·cxarkana· ....... .... ·.. 11:439 12.057 -11.7 10,951 + 4,5 Tucson",,, .. .... ...... · 13 804 14,803 - 6.7 11.405 +21. 0 ~~~~',::: ::::::: :::::::: 13:300 14,279 - 6,2 12,702 + 5.4 Wiohita Falls............ 17.966 14,954 +20,1 15.680 +14,0 12 1 '£otal........... 5840,505 $890,005 - 5.0 ~755.053 : .Inoludes tho figurcs of two banks ill Toxarkana, Arkansas,looated In tho Eighth DI8tflC~. = -J: MONTHLY BUSINESS REVIEW 4 in the total for the United States. Building permits issued at fourteen principal cities in this district were valued at $7,639,000 reflecting increases of 26 and 12 per cent, respectively, over the previous month and the corresponding month last year. Although permits issued at Houston represented 42 per cent of the total, several cities reported substantial increases in the value of permits issued. During March the basic allow abIes for the production of crude oil in the Eleventh District remained virtually unchanged and the Sunday shut-down continued in effect in Texas. However, production increased slightly from week to week, reflecting the gradual expansion in total allowables brought about by the completion of new wells. Output during the month averaged 1,486,829 barrels daily, which represents an increase of 4 per cent over the preceding month but a decline of 5 per cent from the corresponding month in 1937. Despite the decline from a year ago, production was in excess of demand and stocks of crude oil in storage rose further during March. Drilling activity failed to register the customary increase during the month and well completions w'e,e 9 per cent smaller than a year ago. Posted prices of crude oil remained unchanged and the gasoline market continued generally firm. Operations of cotton textile mills in the United States increased in March by an amount larger than the customary expansion at this season, but the decline from the corresponding month last year was nearly as large as the year-toyear decreases registered in the preceding three months. Total consumption in March aggregated 510,941 bales as compared with 427,528 bales in February, and 776,94,2 bales in March, 1937. During the first eight months of the current season the utilization of cotton by domestic mills amounted to 4,023,767 bales. Although this total is 24, per cent smaller than the record amount consumed during the same period of the previous season, it is nearly as large as th~ average during the corresponding period of the preceding ten seasons. Mills continued to maintain heavy inventories of raw cotton; although stocks at the end of March were 2 per cent lower than a month earlier and 15 per cent below those a year ago, they were larger than those on the corresponding date in other recent years. Despite the declining mill .activity and the decreased sales of cotton goods in England and some Continental VALUE OF CONSTRUCTION CONTRACTS AWARDED (In thousands of dollars) Maroh Maroh February January 1 to Maroh 31 1938 1937 1938 1938 1937 38,248 28,325 Eleventh Distriot-totn!.. . 10,763 11,000 7,030 11,321 12,674 Residontin!.. .. .... . . .. 4,750 4,890 3,618 20,927 15,651 All other . . . . . . . . . . . . . . 15,004 0,110 4,321 United States"- totat.. . . . 226,918 231,246 110,038 541,428 002,222 155,626 231,570 Residential . .. .. . . . . .. . 70,306 00,168 40,023 385,802 430,043 All other . . . . ... . .. . .. . 147,522 141,078 79,015 "37 states east of the Rooky Mountains. SOURCE: F. W. Dodge Corporation. BUILDING PERMITS Pereentage ohange Pereentage valuation from Jan. 1 toMar.31,1938 ohan~e , valuatIon v Valuation from 1037 Valuation ~Mar.,1937 Feb.,1988 No. 80 $ 614,969 +208.1 $ 488,471 +714 .7 +551.5 1,808,088 030,158 +117 . 1 - 13 .2 504 +132.2 403,086 253,277 + 40 .0 +208 .5 388 + 18 .2 866,469 466 264,931 + 27.0 - 81.1 + 12.4 2,774,689 - 14.7 996,388 - 33.0 + 22.0 1,873 204 274,251 105,501 + 33. 9 - 11.1 - 24.1 1,317,166 276,605 - 88 .2 - 13 .6 594 - 40.1 507 967,901 602,891 +124.7 +252.3 +147.6 5,985,945 3,211,880 + 97 .2 +100.0 1,222 + 1.8 013,196 379 80,775 - 24 .0 - 82.1 +153 .7 . 309,473 - 39 .0 822 896,006 9. 6 - 40.3 1,165,807 385 277,089 8.2 - 64.3 + 15 .8 165 210,818 79,133 - 30.2 - 18 .9 + 0 .2 147 136,167 02,005 +231.0 + 70.6 +159 . 1 Maroh, 1938 No. Amarillo ..... .. 44 Austin . . .... . .. 215 Beaumont . . .. . . 157 Corpus Christi .. 174 Dallna" . .... . . . 820 El PnBO .... . .. . 82 Fort Worth ..... 222 Galveston . .. . . . 192 Houston ........ 570 Port Arthur . . .. 156 Ban Antonio .. .. 898 Shreveport ..... 162 70 Waco .......... 75 Wiohita Falls ... - - -- -- - - - -- Total .... . . 3,338 $7,639,177 + 12.4 + 26.1 "Includes Highland Park ond University Park. 7,792 $18,026,178 - - 4-.7 + European countries, exports of cotton from the United States, which had declined to a low level in February, showed a counter-to-seasonal increase in March_ However, total shipments of 4,25,888 bales during the month were 9 per cent smaller than in March last year. This decline waS caused chiefly by the lower exports to Japan as takings by most other countries were about the same as a year ago. Total exports during the first eight months of the current season exceeded those in the same period last year by 6 per cent. Recepits and exports of cotton at the ports of Houston and Galveston declined more than seasonally during March, and exports showed a decline of 3 per cent as compared with with those in March last year. Receipts during the month, which were 53 per cent greater than a year ago, represented largely the concentration of privately-owned cotton. The crushings of cottonseed and the production of products during March at oil mills in both Texas and the United States were maintain~d at a high level for this season of the year. Shipments of most products from the mills con' tinued above those a year ago, but in the case of cake and meal, hulls, and linters they were smaller than production during the month, with the result that inventories of these products evidenced a further increase. CRUDE OIL PRODUCTION (Barrels) Maroh, 1938 Inorease or deoreaso in doily , - - - - - - - - - - . " average produotion from: Total Daily Avg. , ----Production Produotion Mar., 1937 Fob., 1938 4,249,050 137,000 - 7,486 + 9,564 North Texna ... .. ... . ....... . 6,655,750 214,701 - 23,993 + 9,626 West Toxna ... . .. . .. . . . ..... . 525,684 -48.221 +10,520 East Texna ................. . 10,290,200 7,022,300 220,526 - 1,998 +14,999 South Toxas .. ... .......... . . 6,175,200 199,200 - 7,867 +15,289 Texna Conatat. . .... . .. . ..... . 'rotal Toxas ... .. . . New Mexico .... .. .. .. .... . . . North Louisiana .. . .. .. .... . . . --40,398,500 - 1,303,177 - - 3,253,600 2,439,000 104,955 78,697 - 89,565 + 2,726 + 9,007 1,486,829 - 77,882 Total district. . .. . . 46,091,700 SOURCE: Tho Oil Wookiy, Houston, Telna. - +60,998 548 232 +59,218 CONSUMPTION, STOCKS AND EXPORTS OF COTTON (Bales) August 1 to March 31 Maroh March Febnmry 1938 1937 1938 Th is senson Lnat senscn Consumption at: sa 867 10,551 12,642 Texna mills .... .. . . .. . . 8,964 77,35b 510,041 776,942 427,528 5,297: 907 United States mills .. .. . 4,023,767 U.S. Stooke-cnd of month: In consuming estab'mts. 1,771,937 2,077,082 1,814,994 5,035,789 11,656,887 Publio stg., comJlrcsses . . 10,956,051 ExjJOrts from U. S. to: United Kingdom. ... .. . 101,389 101,742 97,610 1,894,119 962,t4~ France. . . . . .. . . ... . .. . 33,140 35,153 24,763 672,700 020,4~7 Italy...... .. .. .. .. .. .. 42,181 39,916 a3,641 409,090 274,~O Gcrmany.. ..... .... . .. 18,459 46,747 23,710 689,311 509, ZO Other Europo . .. . . .. .. . 85,510 55,018 61,679 718,231 527,7 Japan. . .... .... . .. .... 07,605 106,210 107,878 433,988 1,242,4 64 All other countries. .... . 47,598 22,912 40,473 439,434 261,464 -----~ Total exports. . . . 425,888 467,706 398,744 4,656,879 4,389,10 9 ------ ------ RECElPTS, EXPORTS, AND STOCKS OF COTTON AT THE PORTS OF HOUSTON AND GALVESTON (Bales) March March February August 1 to Maroh 31 D This season Lnst seese 1938 1937 1088 Rooeipts.. .. ...... .. .. .. . 121,015 79,128 213,694 3,587,883 2,901,~ Exports. ........... . .. .. 220,206 233,590 270,176 2,406,395 2,625, Stooks, end of moath .. ... 1,608,971 851,482 1,778,778 .... BTATIS'rICS ON COTTONSEED AND COTTONSEED PRODUCTS ,...-- -Texna---v--Ullited States-August 1 to Maroh 31 August 1 to March 31 This senson Lost senson 'rhis sonsOIl Lost senso n CottonseOO received at mills (tons) .. . ........ : ..... ... . 1,647,203 902,392 0,303,107 4,391,~~~ CottonseOO crushed (tons) ... . . 1,481,421 896,989 5,500,054 4,101, Cottonseed 011 hand March 31 (tOilS) .. . . ... . .. . .. .. .. . .. . 188,654 15,279 844,028 311,357 Production of produots: Crude oil (pounds) .... .... . 435,953,273 254,077,006 1,687,510,825 1,234,16R,~~~ 418,411 Cako and meal (tO .. . ... . ilS) 000,200 2,450,326 l,sa8'!l2 Hulls (tOilS) ...... . ... . . . . . 237,641 1,411,289 388,079 1,045, 89 1,016,0 Linters (running bales) ..... . 305,661 103,750 1,260,529 Stocke on balld Mareh 31: Crude oil (pounds) ... .. .. . . 20,788,782 3,485,166 56,171,861 23,657,~~ Cake and meal (tons) .. . .. . . 35,802 275,800 82,889 138, 1 Hulls (tons) . .... .. ... . ... . 63,020 28,145 168,465 1l7,9~ 174,4 Linters (running bales) . . ... . 122,137 39,501 536,984 BOURCE: Bureau of Consus, MONTHLY BqSINESS REVIEW MAY 1,1938 NATIONAL SUMMARY OF BUSINESS CONDITIONS (Compiled by the Board of Governors of the Federal Reserve System) .. ,. INDUSTRIAL PRODUCTION , .n <t" - 110 I", L6 I '0 \ \ / / N eo 80 I )~ 0 'v./ . I 00 eo Y '0 '0 eo :..... GO 1034 IU, li38 " 37 1 938 Index of tor Beas Physi c~1 ~olume of produCtion, adjusted 100. B onal v"rllltlon, 1928-1925 average y mont,h., J anua ry, 1984 to March, 1988. = WHOLESALE PRICES r--r---..,---,-----,--...:·~u ~~~ r---t-----+-----+-----~----~ ,OO In March and the first three weeks of April industrial activity continued at about the same rate as in January an d February. Distribution of commodities to consumers showed less than the usual seasonal increase and wholesale commodity prices declined further. PRODUCTION Volume of industrial production showed littl e chan ge from February to March and the Board's index, which is adjusted for th e number of working days and for usual seasonal variations, remained at 79 per cent of the 1923-1925 average. In the steel industry, output of ingo ts averaged 33 per cent of capacity in March and continued at about this level in the first three weeks of April. Shipments of fini shed steel in March, as in other recent months, were at a somewhat higher rate than output. Automobile production, which usually expands sharply at tlus time of the year, showed little change from the low level of January and February, and output of tires and plate glass likewise remained at a low rate. In the lumber and cement industries there were considerable increases in output in March. At cotton and silk textile mills and shoe factories activity rose somewhat, while production at woolen mills declined followin g a rise in February. Declines were reported also for meat packing and sugar refining. At mines, where production d~crease d generally in F ebruary, output of bituminous coal an d nonferrous metals continued to decline in March , while production of anthracite and crude petroleum increased somewhat. Value of construction contracts awarded showed a considerable increase in March, accord· ing to figures of the F. W. Dodge Corporation. Awards for residential work, which had advanced moderately in F ebruary, increased sharply in March but were still 12 per cent less than in March, 1937. Contracts for other private work also increased in March, but remained considerably small er than a year ago. The value of public projects showed an increase and was higher than last year. EMPLOYMENT .. r-~-t-----+-~--+-----~----~eo --~,.~~~~~,~ ."~-L~ ,.~,.~L--,-.'-~L-' ,.-~--J.O Indexes co .\ d Labor St. t':lPt.1 e by the Un ited States BUl·eau of I 18 I CS, 1926 100. By weeks 1984 to week ending April 16, 1988. ' = Factory employment declined somewhat and payrolls showed little change from the middle of February to the middle of March, although increases are usual at this season . The number employed in the machin ery industries decreased considerably furth er and at woolen mills there was also a substantial decline, while most other manufacturing industries showed modera te declines or little change. Employment on the railroads and in the public utili ties declined somewhat further in March, while in other non-manufacturing lines there was little change in the number employed. DISTRIBUTION Sales at variety stores and by mail·order houses increased seasonally in March, while sales at department stores showed less than the usual rise. TIle Board's seasonally adjusted index of department store sales declined from 88 in February to 86 in March and figures for the first three weeks of April indicate some further decline. Freigh t-car loadings showed little change from F ebruary to March; although a rise is usual at tlus time of the year. Slupments of coal declined substantially and miscellaneous loadings increased by less than the usual seasonal amount. COMMODITY PRICES I~ V Vcdncsd'\ LUlances' y Of 0 1 83& ' I!UI6 1 937 " :S8 fi glll·cs of total member bank reserve reqUir~J Federal Reserve bli nks, with estimHtes , ancl excess reserves, January 8, 1934 to April 20, 1988. "'• Wholesale commodity prices generally declined from the middle of March to the third week of April. There were further decreases ill prices of a number of raw and semifinished industrial commodities, and prices of some leadin g agricultural products also declined, reflecting in part seasonal influences. In the middle of April prices of some industrial materials advanced slightly from the lows reached earlier in the month. BANK CREDIT MONEY RATES IN NEW YORK Oln' During March and the first three . weeks of April, total loans at reporting member banks in 101 leading cities declined further, reBecting a substantial reduction in loans to brokers and dealers in securities and also declines in commercial loans. Holdings of investments showed little net change, declining in March and increasing in April. As a part of the Government's program for encouragement of business recovery, the Board of Governors reduced reserve requirements of member banks by about $750,000,000, effective April 16, and excess reserves correspondingly increased. As. a part of the same program the Treasury discontinued the inactive gold account ~~d deposited about $1,400,OOO,0~0 of gold certificates with the Federal Reserve banks. Addltl.ons to excess reserves fro~ thiS source will occur as the Treasury draws upon these depOSIts to meet current expendIturea and the retirement of Treasury bills. lea. 0 ra.... .... ,.., 10'. nverages ot ~ !>f :V:ederal Reserve Bank ; weekly notes and ally Yields on 8- to 5-year Treasury and Week i on Treasury bonds callable after 8 years Y O-day Tr~a:ve rag.e of daily dealers' quotations o~ In W eek Fury bills or rate on new bills olfered • ' 01· weeks ending J anuary 6 1984 to April 28, 1988. ' , ni SC~unt MONEY RATES AND BOND YIELDS Yields on Treasury bonds declined from a level of 2.50 per cent in the first half of Aptil to 2.32 per cent on April 22. The avera~e yield on ~-5 year Treasury notes d.eclined to a new low of 0.81 per cent, which compares wI.th the ~revlOus l?w of 0.91 per. cent m. December 1936. The rate on three month Treasury bIlls dechned to vlTtually a nO-Yield baSIS. Other 6ho~t-term open-market money rates remained unchanged in the first three weeks of April.
@FedFRASER