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Monthly Review of Business and - Industrial Conditions
in the Eleventh Federal Reserve{District, Federal Reserve Bank of Dallas
W. F. RAMSEY. Chairman and Federal Reserve Agent.
Volume 5
CHAS. C. HALL. Assistant Federal Reserve Agent
Dallas, Texas, May 15, 1920
April witnessed a general slowing up of agricultural,
business and financial operations in the Eleventh Federal
Reserve District. In each of these three lines of activity
the change of pace was not without its compensations.
Agricultural processes, after being arrested by the very
unusual occurrence of a spring drouth, made a rapid recovery at the close of the month when heavy rains, fairly
general throughout the district, ushered in the month of
May.
The slump in trade was sufficiently noticeable to accentuate the dizzy pace of previous months, yet did not
seriously impair the intrinsic strength of the general situation . . In fact, the inherent soundness of trade conditions
as a whole was emphasized by the' fact that busines failures in the district for the month of April were, with the
single exception of those of September, 1919, the smallest
of any month for the past three years, as measured by the
amount of liabilities involved.
While there was no variation of importance from the
previous upward trend of prices, the rate of their increase
Was visibly diminished, and, what is more important, there
Was a diminution, even more pronounced than in the month
of March, of the extravagant buying on the part of the
public which has borne prices steadily upward.
One of the most hopeful symptoms of ' the time is the
unanimity of our reports from retail and wholesale merchants to the effect that the falling off in April sales was
confined largely to the higher-priced articles that fall in
the luxury or semi-luxury category. One of the largest
dealers in automobile supplies in Texas, in replying to our
questionnaire for April, said: "There seems to be a gro~
ing tendency toward conservative buying, which would indicate that the people are beginning to slacken their semiriotous mode of living which has been in vogue for the past
several months." Department stores report that the delUand for silks is noticeably on the decline. While these
developments, and other indicia that might be mentioned,
point to the growth of a reaction from extravagance, it
lUust be recognized that there is still such a serious spread
between production and consumption that the situation
calls for a more rigorous observance of economy, thrift
and intelligent buying than now obtains.
The nation-wide tension in the money market has been
lUaking itself felt in the Eleventh District. Bankers are
scrutinizing the demands of their customers more closely
than ever, and a numbet of them report that there is a
healthy spirit of caution already visible in their clients'
plans for the coming months. Industrial and mercantile
Interests appear to be fully alive to the warning that essential and productive processes must have right-of-way in
t~e financing of the future, even if it necessitates the ratIoning of credit as a means of credit control until the dang~r period is passed in the process of deflation. With a
WIse distribution of credit there seems to be no grounds
for serious alarm in the matter of financing the essential
No, 4
requirements of the Eleventh Dist~ict through the borrowing season until this year's crops are harvested. That portion of the district's revenues which comes from oil production may be expected to continue through the summer
months as a helpful source of income, and, in addition,
there should be a fairly steady liquidation of cotton, cotton
products and livestock. Yet with the returns from these
sources in hand, it is evident from the credits which have
thus far been extended by the Federal Reserve Bank of
Dallas in May, and the demands already in sight for the
month of June, that the Eleventh District will have occasion to call on other districts for rediscount accommodations through the summer period_
AGRICULTURE
The cold, dry, windy weather which prevailed during
the greater part of the month of April adversely affected
the agricultural situation throughout this district. In New
Mexico the wheat crop suffered particularly from high
winds and lack of moisture. ' Late reports from , Arizona
and, Oklahoma indicate that farming conditions in those
states are now more encouraging. The drouth ,in Texas,
which was only partly relieved by showers during the latter
part of April, was detrimental to winter wheat, the condition of which is e!iltimated as 73% of normal, which
forecasts a yield of 11,813,000 bushels, based on an acreage
of 960,000 acres after allowing for a 10 per cent abandon- ,
ment. Plowing for spring planting was reported on May
l~t to be 86% complete in Texas .and 84% in Oklahoma.
Spring planting is from three weeks to one month lilte,
owing to the dry and unfavorable weather conditions of
recent months, as well as to high wages and the
scarcity of farm labor. On May 1st 65% of spring
sowing and planting had been completed in Texas and 69
per cent in the Oklahoma section of this district. April
temperatures in South Texas were about normal, but in the
Northern part of the State were unseasonably low throughout the month, materially retarding the germination of seed.
Due to the low germinating power of the seed used, and
the cold, rainy weather of early May, early cotton has made
slow growth in Texas and the stand is generally poor. Much
replanting has been found necessary. Indications still
point to a very late crop this year. Showers throughout
North Texas and part of West Texas during the first
weeks in May were of material benefit to com and small
grain. Planting of rice is progressing under favorable
conditions_
Non-Cotton
Zone Plan
Following the conference last month
between Texas and federal officials in
connection with the pink bollworm situation, the Governor of Texas is reported to be preparing
a proclamation establishing a non-cotton growing zone to
include a section bounded , by Galveston, Harris, Orange
and Liberty Counties in Southea.st T~xa8. It is understood
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
that the proclamation will become effective following the
special session of the Legislature to be held May 24th,
which is expected to provide for reimbursing the affected
cotton growers. Reports indicate that the establishment
of a non·cotton zone will be resisted by some of the growers. It is believed, however, that eventually a plan will be
worked out that will provide an effectual and equitable
solution of the bollworm menace.
Cotton
The movement of the 1919 cotton crop conMovements. tinued to slow up through the month of April.
Receipts and shipments at Galveston and Hous·
ton show a substantial reduction as compared with the
movement through those cities for the previous month.
Foreign exports through the port of Galveston were 118,283 bales in April, compared with 222,929 bales in March.
Total exports for this season up to April 30, 1920, were
larger by 45 per cent than the season's exports at the corresponding date last year.
MARCH COTTON MOVEMENTS
Galveston Houston
93,368
Receipts ............................................................ 115,573
91,665
Shipments ............................................................ 126,914
262,651
Stocks on April 30.............................·......... ··.... · 221,697
GALVESTON STOCK STATEMENT
April 30, Apri130,
1920
1919
12,821
For Great Britain ....... _....................................... 12,499
7,000
For France ......................................................... .
31,800
For other foreign ports ............................... ·.... 38,500
500
For coastwise ports............................................ 15,000
180.327
In compresses and depots................................ 155,678
TotaL ........................................................... .221,697
232,448
GALVESTON COTTON EXPORTS
This
Season
Total foreign exports to April 30.............. 1,759,516
Total coastwise exports to April 30........ 298,986
Last
Season
1,091.023
339,661
Total exports to April 30............................ 2,058,502
1,430,684
Grain
Movements
Notwithstanding April wheat receipts at
five grain centers in this district exceeded
those of March by 46%, reports from
over the district indicate that a considerable amount of
wheat is being held for higher prices, on account of the
continued rise in the market. Supplies of corn and oats
fell off in April, as compared with March, to the extent
of 51 per cent and 5 per cent, respectively. Tabulated reports of grain inspectors reflect the following combined
grain receipts at Dallas, Fort Worth, Wichita Falls, Waco
and Galveston.
COMPARATIVE GRAIN RECEIPTS
March
(cars)
Wheat ........................................................................ 1,740
Corn .......................................................................... 300
Oats ............................................................................ 393
Marc:h Grain
Prices
April
cars)
2,552
147
373
Local grain quotations worked steadily
upward during April, No.1 red wheat making a gain of 9 cents, No.2 corn, 25 cents,
Texas red oats, 11 cents. Increased demand, scarcity of
supplies as a result of railway strikes, and discouraging
prospects for the 1920 crops, were factors in the generally
bullish trend of the market.
COMPARATIVE GRAIN PRICES
March 31st April 30th
Wheat-Basis No. 1 red .................................... $2.81
$3.00
Corn-No. 2 ........................................................ 1.62
1.87
Oats-No. 3 even. weight bags-delivered
1.18
Texas common point territory................ 1.07
LIVESTOCK.
Range
Conditions.
At the close of April the Eleventh District
ranges, though a little too dry for a normal
growth of grass, were as a rule in fair to
good condition. Additional rainfall will place them in
excellent shape. In Arizona the cold nights and dry winds
during the latter part of the month caused some deterioration in ranges, while in New Mexico grazing conditions are
reported as good to excellent. Texas pastures were mostly
in good condition on May 1st, though dried out consider·
ably by a two·months' drouth, which was relieved some·
what by a fairly general rain on April 24th. Condition
of livestock is everywhere reported to be good. Cattle are
fattening rapidly, and the loss from disease and exposure
continues extremely light.
Livestock
Prices
Notwithstanding a greatly restricted marketing movement in April, livestock prices con'
tinued the general downward trend which characterized the market in March. At the Fort Worth market
beef steers, which in March brought a top price of $14.00,
reached a high mark of only $11.75 in April, while towards
the end of the month the very best consignments were selling at from 75 cents to $1.00 lower. Stockers, butcher
stock and hogs suffered similar depreciation, the hog mar·
ket being extremely erratic. Grass fattened cattle from
South Texas arrived in exceptionally attractive condition,
but the market was apparently indifferent to considera·
tions of quality. Sheep prices showed the heaviest de·
cline, the recession ranging from $2.00 to $2.50, as are·
sult of record·breaking receipts. Calves were scarce and
in good demand at higher rates. Comparative top prices at
the Fort Worth market for the month of April, this year
and last, are presented below.
TOP LIVESTOCK PRICES IN APRIL
1920
Beef steers ................................................................$11.75
Stocker steers ............................................................ 10.60
Butcher cows ............................................................ 13.00
Stocker cows ............................................................ 9.00
Calves .......................................................................... 14.00
April
1919
$15.00
14.25
15.00
10.50
14.75
rf~cs . ~ ~ ~ ~ ~ ~ ~:~: ~ ~: : : : ::.:~ : :~:~: : ~: : :: : : ~: : : : : :~ ~:~: tH~ ~~:gg
April Livestock
Movements.
Drouth, strikes, car shortage, and un'
settled market conditions were contrib·
uting factors in the sharply checked live·
stock movement in the month of April. At the Fort Worth
market April cattle receipts were the smallest recorded for
that month since 1915. On the other hand, the yards were
swamped with a record·breaking run of sheep, receipts
jumping from 28,488 in March to 122,869 in April.
During the early part of the month, while the switchmen
were on strike, trading was suspended entirely. With the
restoration of railroad service, however, shippers resumed
operations with a rush that at times threatened a serious
glut at the Fort Worth market, resulting in a number of
consignments being diverted to other markets.
Following several weeks of dry weather in the ·Panhandle,
the slow growth of range grass in that section tended to
hasten the spring movement of steers to Kansas pastures
for finishing, but a serious dearth of cars greatly delayed
the movement. At Dalhart alone the shortage was esti·mated at 300 cars.
Growers of livestock are beset with many difficulties in
keeping the ranges properly stocked, notwithstanding
range conditions were never more propitious for stocking
up their ranges. On account of the tightness of the money
market and scarcity of cars, cattlemen are unable to take
full advantage of an otherwise favorable opportunity to
bUild up their herds.
Shippers are closely watching the market, and continue
to hold back for better prices. Grass·fed steers, in prime
condition, are reported ready to move in force from South
Texas pastures, it being estimated that 300,000 head will
move from that section during the next 90 days. A comparative statement showing April livestock receipts at Fort
Worth last month, the previous month, and a year ago, is
given below.
FORT WORTH LIVESTOCK RECE IPTS
April
1920
Cattle .................................... 75.282
Calves .................................... 8.795
Hogs ........................................ 37,034
Sheep ...................................... 122.869
March
1920
52.518
7.825
61,723
37.034
LUMBER.
April
Production.
Southern pine lumber production in April
was about 85 per cent of normal, according
to the figures of 34 reporting mills in the
Eleventh District. In March 35 mills reported an average
production rate of 82 per cent. The April output exceeded
April shipments by 19 per cent, while in March the production was only 5 per cent ahead of deliveries. The chief
G
G
L
G
Loss or
Gain
22,764
970
24.689
85.835
April
1919
99.299
8.819
66.687
75.287
factor in the April curtailment of deliveries was the embargo against the railway strike centers. Volume of orders on hand at the end of the month was equivalent to approximately 12 weeks' normal production of the reporting
mills. With the mills' output sold three months ahead, and
with new orders keeping pace with shipments, it is probable that it will require many months for the mills to
catch up with the demand.
COMPARATIVE LUMBER MILL STATISTICS
March
(weekly averages)
Number of mills reporting..........................................
35
Orders received ..............................................................
9.929.351 feet
Production ......................................................................
14.511.474 feet
Shipments ..................................................................... :..
13.742.675 feet
Orders unfilled at end of month................................ 224.974.771 feet
Normal weekly production..........................................
17.646.097 feet
(Based on sta tistics compiled by Southern Pine Association.)
April Lumber
Prices
April changes in lumber quotations were
generally downward, the decline in mill
prices ranging from $5.00 to $8.00 per
thousand on the more active list, according to reports at
hand. The retail yards continued to show a disposition
to postpone their buying, and in addition to their lack of
support the market was further depressed by the strike sitUation which temporarily shut the mills off the affect·
ed cities. As a result the Southwestern retailers were offered
price concessions by the mills sufficient to bring about the
absorption of much of the output intended for Northern
and Eastern points.
L
L
L
G
Loss or
Gain
24.017
24
29.653
47.582
April
(weekly averages)
34
12.789.991 feet
15.334.375 feet
12.852.229 feet
217.856.628 feet
17.939.008 feet
maintained during 1920, it would mean a yield of approximately 130,000,000 barrels for the year, having an aggregate value, conservatively estimated, of something over
$400,000,000. Oil wells, numbering slightly in excess of
3,000, are now bein~ drilled in this district.
PETROLEUM.
In the matter of extensions and development of new oil
territory dudng the month of April, interest centered chiefly in accessions to production in Wilbarger, Stephens,
Reeves and Palo Pinto Counties in Texas, and in the Bull
Bayou section of North Louisiana. An active leasing and
drilling campaign is reported to be spreading throughout
the state of New Mexico, and the results are being closely
watched.
April
Production
Drillind
Operations
. Oil production in the Texas and North
Louisiana fields for the month of April
reached a total of 11,024,345 barrels, compared with 11,132,024 barrels during the month March,
as shown the the table reproduced below. Although these
figures show a decrease of 107,679 barrels in the gross production for the month, the average daily yield for April
reflects an increase of 8,381 barrels over the average daily
output for March. In monthly production a decline was
noted in all fields in the district save the Texas coast, where
a gain of 34.607 barrels was registered. All fields maintained a higher rate of production, however, as gauged by
the average daily yield.
The April record brought the production in this district
for the first four months of 1920 up to the total of 44,024,491 barrels. Should the present rate of production be
April drilling results were better in North
Louisiana, but less successful in Texas, than
in the previous month. For the district as a
whole there were 609 completions, including 154 failures,
with 456 producers having an initial production of 156.
Texas wildcat wells maintained their previous ratio of
about two failures to each producer brought in. Weather
conditions in April were more favorable for drilling operations, but the transportation situation continued to be a
disturbing Iactor in the distribution of supplies.
Crude Oil
The only changes noted in prices during the
past thirty days were advances of 50c in the
quotations on crude at the Texas coastal fields
and on Corsicana light oil. Fuel oil is in strong demand
at rates much higher than those prevailing in many expiring contracts.
Prices
OIL PR:ODUCTION
March
Total
~pril
Increase or Decrease
Daily
Total
Average
Dec. 84,870
189
Inc.
Dec. 25,269
Inc. 1,913
Inc. 34,607
Inc. 3,329
. FieldNorth Texas .................................................. 2,806,600
Central-West Texas ................. :.......... :....... 2,562,429
Texas Coastal ................................................ 2,023,973
Daily
Average
90,535
82,659
65,290
2,721,730
2,537,160
2,058,580
Daily
Average
90,724
84,572
68,619
Totals, Texas .................................................. 7,393,002
North Louisiana .......................................... 3,739,022
238,484
120,613
7,317,470
3,706,875
243,915
123,563
Dec. 75,532
D ec. 32,147
Inc. 5,431
Inc. 2,950
Totals, 11th · bistrict ...................................... ll,132,024
359,097
11,024,345
367,478
Dec. 107,679
Inc. 8,381
Total
DRILLING OPERATIONS
Completions Producers Failures
Field-
Initial
Production
North Texas ..................................................... .
Central-West Texas ......................................... .
Texas Coastal ....................................................
T·e xas Wildcats ..................................................
Totals, Texas ..................................................... .
159
254
61
36
110
208
42
13
49
46
19
23
North Louisiana ............................................... .
510
99
373
83
137
17
97,814
58,455
April totals, District... .......................................
March totals, District ....................................... .
609
666
456
532
154
124
156,269
154,930
29,820
~2 ,645
33,839
1.510
CRUDE OIL PRICES
Louisiana (38 gravity and above):
Texas:
g~~~i~:~: ~;~~~y .::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::$f:~~
Texas Coastal fiel<:ls .................................... ·..... .-.................. 3.00
All other ·Texas fields ...... ,...................................................... 3.50
~~~~r
.........~~::.....~~:..~:~..:....::.:..:.....~~~::::~...~......:......:..:::::::::::..:::::::::::::::..::::
$~:~~
~~II S~~~o~ ..:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: ~:!g
(Oil statisti€s compiled by ·The Oil Weekly, Houston, Texas.)
MINING.· ' .
Coal and
April production of the eleven bituminous
mines in Texas was 36,000 tons, with the mines
operating at 60% of capacity, while for
previous month the output was 50,000 tons, with all p"lants
running at full capacity. In the Texas bituminous mines
now operating the coal seams are thin (18 to 28 inches) and
production is steadily decreasing, many of the miners hav·
ing recently gone from Texas mines to other states. This
year's small production will be absorbed by the railroads,
but will be inadequate to meet the needs of those whose fuel
oil contracts are expiring at a time when it is practically
impossible to renew them.
Lienite
The Texas lignite industry maintained its normal production rate in April. Thirty·two mines, operating ~t 100
per cent capacity, reported an aggregate output of 70,000
tons. Heretofore the competition offered by fuel oil, and
the lack of a year-around market, has tended to check the
development of the enormous store of lignite deposits in
this state. The increasing scarcity of oil, however, in the
face of the rapid growth of oil consumption, is turning the
attention of many industries to the possibilities of lignite
as a solution of their fuel problem. Last year the produc.
tion of Texas lignite was 860,000 tons, and it is possible
that this tonnage will be exceeded in 1920. •
Ores
Copper mines in New Mexico and Arizona are
still operating at only about 50% of capacity,
on account of the continued depression in the cop'
per market, according to reports from our correspondents.
Considerable development and construction work is being
carried on, however, with a view of keeping the labor supply intact and of preparing for a general resumption of
production later on.
TRADE AND TRANSPORTATION.
Wholesale
Reports from wholesalers for the month of
Trade
April reflect a distinct lull in the buying move·
ment during that month. Among the causes
which contributed to the reaction were unseasonable weath·
er conditions, transportation difficulties, price resistance
and retail stock replenishments in March. April sales, how·
ever, in all of the r.eporting lines except automobile sup'
plies and farm implements, reflected heavy gains over
sales for the corresponding month last year. Prices were
again on an ascending scale, both as compared with March,
1920, and April, 1919. Comments of wholesalers are to
the effect that the outlook is for a slower pace in trade for ·
the balance of the year, with no immediate prospect of the
downward turn in prices which eventually is expected to be
the next broa.d movement in the price situation. Detailed
statistics on the condition of wholesale trade, based on
April operations of our reporting firms, are given below.
APRIL, 1920, WHOLESALE TRADE, COMPARED WITH MARCH, 1920, .AND APRIL, 1919.
Compared
Selling
Shipments
with
Sales
Price
Inc. 6%
Groceries .............................................................................. Mch. 1920
Inc: 20/0
Inc. 4%
Apr. 1919
Inc. 57%
Inc. 48%
Inc. 26%
Inc. 8%
................ ..
Furniture .............................................................................. Mch. 1920
Inc. 5%
Apr. 1919
Inc. 33%
............ _- ....
Inc. 45%
Dec. 30%
Auto Supplies ...................................................................... Mch. 1920
Dec. 39%
Same
Apr. 1919
Dec. 13%
Inc. 16%
Dec. 230/0
Dec. 16%
Dec. 16%
Drugs .............................:.......................:.......... :..................... Mch. 1920
Inc. 3%
Apr. 1919
Inc. 46%
Inc. 11%
Inc. 46%
Dry Goods ...........................................................:................ Mch. 1920
Dec. 8%
Dec. .8%
Inc. 8%
Apr. 1919
Inc. 45%
Inc. 21 %
Inc. 45%
Inc. 1%
Inc. 5%
Hardware ........................ :..................................................... Mch. 1920
Dec. 10%
Inc. 39%
Apr. 1919
Inc. 8%
Inc. 45%
Farm Implements .......................................:...................... Mch. 1920
Inc. 6%
.Dec. 27%
Dec. 27%
Apr. 1919
Inc. 12%
Inc. 5%
Inc. 5%
Stock at end
of month
Dec. 140/0
Inc. 18%
........... ......
.......... --.. ...
~
~
Same
Inc. 10%
. .................
. ........... _-_ ...
Inc . 5%
Inc. 160/0
Dec .. 3%
Dec. 24%
Same
Dec. 14%
Retail
Trade
The most interesting development in retail trade higher prices now being realized, the gain in volume of
conditions during the month of April, as brought business was only a moderate one. Retail price moveout in many of the reports submitted by firms in this dis- ments, as reflected by our April reports, were limited in
trict,. is the falling off in the public demand for the higherpriced classes of merchandise. This is particularly. stressed range, the only reported variations from March levels bein the reports of retailers handling shoes, dry goods, cloth- ing advances of 5% in furniture and 11% in hardware.
ing and furniture. That there has not been a corresponding retailers' stocks on hand at the end of the month were from
increase in the purchasing of less expensive goods is evi- 4% to 8% larger than a year ago. . Furniture deders redenced by the' fact that the net sales of these four lines ported their unfilled orders as of April 30th amounted to
showed a noticeable shrinkage as compared with the pre· 28% . of their total purchases for the year 1919; for the
vious month. The quieter tone of April trade seems to shoe trade the ratio was 10%, clothing' 12%, dry goods
be partly attributable to a more circumspect buying policy . 8%, and hardware 20%.
on the part of the public and partly due to the unseasonIn the following table there is presented a composite
able weather conditions that obtained in the month 0.£ May.
record of sales, selling prices and stocks on hand at the end
As in wholesale trade, the April volume of sales, in terms of the month, showing the average increases or decreaSies
of money value, consideraoly surpassed the record for for the month of April in six lines of retail trade, based
April of last year, though when due weight is given to the on the reports of 68 representative firms.
APRIL, 1920, RETAIL TRADE, COMPARED WITH MARCH, 1920, AND APRIL, 1919.
Selling
Compared .
Stock at end
Sales
Price
of month
with
Inc. 6%
............ ......
.. -............ ..
Groceries .............................................................................. Mch. 1920·
..................
Inc. 25%
.............. - ...
Apr. 1919
Inc. 6%
Inc. 5%
Same
Furniture .............................................................................. Mch. 1920 .
Inc. 24%
Inc. 64%
Inc. .'l9%
Apr. 1919
Inc. 5%
Dec. 11%
Same
Shoes ............................................................... :.....................·.Mch. 1920
Inc. 11%
Inc. 10%
Inc. 15%
Apr. 1919
Inc. 9%
Same
Dec. 10%
Clothing ........................................:....................................... Mch. 1920
Inc. 62%
Apr. 1919
Inc. 35%
Inc. 23%
Inc.
Same
Inc. 3%
Dry Goods ............................................................................ Mch. 1920
Inc. 31%
Inc. 244~0
Apr. 1919
Inc. 49%
Inc. 8%
Inc. 11%
Inc. 11%
Hardware .............................................................................. Mch. 1920
Inc. 27%
. Apr. 1919
Inc. 40%
Inc. 48%
~
Transportation
Some improvement in the car supply of
this district was noted in the month of
April, particularly in the Panhandle sec~ion where a shortage of 2,000 cars, needed to move wheat, created a serious
S~tuation for a time, although the railroads now have the
SItuation well in hand. Some improvement, too, is observed in the practice of making minimum car-lot shipments
of merchandise. ,while this practice is still in evidence in
the case of products of factories that are behind with their
shipments, and as applied to certain commodities, such as
fancy groceries, on which prices are still soaring, there is a
general tendency to load cars to capacity, thus eliminating
ne of the abuses of transportation 'facilities which former·
Y figured to a large extent in the car shortage.
I
FINANCIAL.
Federal Reserve
Bank's Position
April loans made by the Federal Reserve Bank of Dallas to its member
banks, state and national, amounted to
$107,195,576.40, while the amount of paper retired during
the month was $88,431,4117.80, or a net increase of $18,764,158.60 in the accommodations extended . to member
banks, rediscounts showing an increase of $1l,4S2,04,9.73,
and collateral notes $7,312,108.87. In April 307 banks
were accommodated, against 252 in March. The increased.
demands of the Eleventh District banks, due to the seasonal
needs of their customers, not only absorbed the excess reserve which the Federal Reserve Bank held on March 31st
in the form of $10,000,000 of paper rediscounted for other
reserve banks, but made it necessary for the Dalla!! bank to
rediscount $3,000,000 of its member banks' paper in other
districts. Paper purchased in the open market stood at
$1,967, 885 on April 30th, as compared with $1,186,210 Qn
March 31. Member banks' reserve deposits increased from
$60,977,508 to $61,295,656.81. Federal Reserve notes outstanding on April 30th were $83,485,200, compared with
$81,733,712 at the close of March.
Conditions of Member
Banks In Selected Cities
Condition reports show
that the 44 member banks in
Dallas, El Paso, Houston,
Fort Worth, San Antonio, Shreveport and Waco reduced
their holdings of government securities to the extent of
$1,099,000, and decreased their loans secured by U. S.
war obligations by $202,000 during the month of April.
At the same time there was an expansion of $3,925,000 in
other loans and investments, and an increase of $8,309,000
in net demand deposits. During the same period their reo
serve balances with the Federal Reserve Bank showed a
gain of $1,553,000, while their borrowings from the reserve
bank fell off to the extent of $8,765,000, or in direct pro·
portion to the growth of thejr deposits. These changes would
seem to indicate that although the condition of country
banks became noticeably more extended in the month of
April, the large city banks were able to improve their posi·
tion during the month. A monthly and yearly comparison
of their condition is presented in the table below.
CONDITION STATISTICS OF 44 M EMBER BANKS IN SELECTED CITIES
April 2, 1920
April 30. 1920
U. S. Securities owned ...........,.............................................................. $ 58.608.000
$ 59,707.000
Reserve with F. R. Bank .......................................................-........... ..
26,472.000
28.025.000
Loans secured by U. S. War Obligations ...................................... ..
9.565.000
9.767.000
All other loans and investments ....................................................... .
268.641.000
272.566.000
Net demand deposits ............................................................................ ..
235.431,000
243.740.000
Bills Payable with Federal Reserve Bank ......................................
50.739,000
41,974,000
The volume of clearings for April, 1920, at
the ten reporting cities of the district, averaged
4.3% less than their clearings for the
previous month, but exceeded those of April 1919, by
53.8%. In none of the reporting cities except Beaumont,
Shreveport and Wichita Falls was there as large an ex-
Bank
Clearinds
April
March
1920
$ 8.505.314
6.467.146
1'78.669.372
30.341.352
32,524.332
123,998,316
23.665.796
15.654.969
21.665.917
-3.810
+2.310
-8.1%
-8.210
-3.3%
-12.010
-2.2%
+1.710
-3.310
+18.210
Totals ..............$508.064.734
$531,142.565
-4.3%
89.~0,051
Reports of average discount
rates charged by banks in six of
the larger cities of this district
show but Htle variation from the general level of rates
prevailing in March, although in the case of cattle loans
there was a sharp increase at Fort Worth, the principal
Discount and
Interest Rates
H
Prime Commercial Paper:
Customers' 30 to 90 days ...... 7 ~
Customers' 4 to 6 mos ........... 70
Open Market 30 to 90 days ..7~
Open Market 4 to 6 mos ..... 70
Interbank loans ..........................60
Collateral leans, demand ............8
Collateral loans, 3 mos .............8
Collateral loans. 3 to 6 mos .....8
Cattle loans ..................................8
Loans secured by warehouse
receipts. Bs/L. etc .................8
Loans secure? by Government secuntles ........................8
change of clearing house items in April as there was in
March. For the month of April and the first four months
of the year, however, gains of 53.8% and 47.6%, reo
spectively, were shown over the corresponding periods last
year.
BANK CLEARINGS
April
Inc. or
1919
Dec.
1920
Austin ..........................$ 8.176.746
Beaumont .................. 6,618,500
Dallas ...................~ ...... 164.175.292
EI Paso ...................... 27.829.467
Ft. Worth .................. 86.623.778
Galveston .................. 28.60$.900
Houliton .................... 121.207.107
Shreveport ................ 24.075.074
Waco .......................... 15.137.467
Wichita Falls ............ 25.615,403
May 2.1919
$ 82.233.000
18.979.000
6.685.000
176.689.000
163.394.000
34.380.000
Inc. or
Dec.
Four months
-55.0%
+3.7%
+59.9%
+ 12.410
+45.9%
+40.7%
+86.8%
+120.710
+76.8%
+81.1 %
1920
$ 32.560,072
27.433.729
701,653,304
116.963.787
350.375.887
125.901.532
486.176.457
94.563.541
62.433,436
89.432.011
$330.226.725 +53.8%
$2.087.493.756
$ 18.185.548
6.384.563
102.693.747
24.760.625
59.374.738
20.331.176
64,876.505
10.909.698
8.564.168
14.145.957
1919
$141.409.654
24.743.700
424.161.235
92.548.330
255.614.189
84.059.428
260.168.829
46.216.128
38.835.041
46,594.770
Inc. or
Dec.
-77.0%
+10.9%
+65.4%
+26.4%
+33.2%
+49.810
+86.9%
+104.6%
+60.8%
+91.910
$1.414.351.304 +47.6%
livestock center of the district, where cattle loans commanded an average of 8~%, as compared with
the March quotation of 7%. The following table
shows "high," "low" and "customary" rates effective in
April at the cities listed.
Dallas
L C
APRIL DISCOUNT RATES
Ft. Worth
Houston
San Antonio
Shreveport
H L
C
H
C H L
C
C H L
L
60 7
7
7
60 7
7
7
6)4
6
6
7
(i
7
6
7
6
8
8
8
7
7
6
8
8
8
9
6
6
7
7
6
6
6
6
6
70
70
7
7
6
8
8
8
80
6
6
60
60
8
8
6
6
6
8
8
8
7
6
6
6
6
7
6
7
7
7
7
8
8
8
8
8
6
6
6
6
6
7
7
..
8
8
6
6
7
7
60 7
8
6
6
60 ....
.7
6
6
6
7
60
60
H
Waco
L
C
8
8
6
7
7
7
6
6
7
70
6
6
8
8
8
8
7
7
7
8
8
70
70
8
7
7
8
6
70
7
7
7
8
6
7
8
6
7
8
8
8
6
6~
8
6
7
7
50 6
8
6
60
7
6
6
8
6
70
has, despite the growth of the open shop movement, thrown
the wage situation into a chaotic condition.
LABOR.
Supply
Despite recent protests by the Texas Federation
of Labor against the importation Of Mexican labor into Texas, no change is expected to be made in the
present arrangement by which this much-needed supply of
labor is being secured under special immigration regulations for supplementing the farm labor supply. Whi~e
conditions still indicate that a large amount of farm land In
this district will lie idle this year for lack of man-power
to cultivate it at wages than can be paid, the shortage of
workers has to some extent been offset by the increased
Use of power implements. Following the acute farm labor
shortage in 1919, dealers in labor-saving devices for farm
Use experienced this spring the heaviest demand in the history of their trade.
, The building campaign in the cities has greatly overtaxed
the supply of skilled labor in that line, and has brought
about a regime of competitive bidding by employers which
Wades
In Texas, especially near the oil fields, farm
hands are being offered in some instanCes as
much as $4.00 per day and board. In the larger cities
union wage scales of the building trades, even where they
are the nominal basis of unexpired contracts with builders'
associations, are in many instances lower than the rates
actually being received by both unionists and non-union·
ists. Bonus adjustments, by mutual agreement, have op~
erated to make many of last year's wage scales obsolete.
A typical example of this situation is afforded by the
accompanying table showing current wage scales in the
building trades at one of the largest cities in the district.
This table shows both the nominal scale (as fixed last year
under agreements) and the actual scale of wages now paid
as a result of the bonus-bidding system.
RATE PER HOUR
Nominal
Actual
Scale
Rate Paid
TRADE
~1~~~~~rsa~3dSi~:~fi~~~~~::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::$U~~
$1.25
1.25
.87~
l.00
1.00
Carpenters, painters, paperhangers, cement finishers, iron and
sheet metal works, slate and tile roofers ............................................... _.......................,................................
h~\~~r~g . ~~gi~~~~~··::::::::::::::::::::,: ::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: :~~~
Electricians, tile layers and sign painters ................................... _........................................................................... 1.00
Glass workers ........................................................................................ _....................................................................... , .75
Elevator constructors ... _............................................................................................................................................. .90
Strikes
With the exception of a plumbers' strike in
Wichita Falls, there is at present no serious la~or disturbance in tha district, although minor dislocations
In industrial relations which occur now and then furnish
evidence of the general unrest which has been a serious factor of the situation for many months.
FAILURES.
An excellent record was made by this district in the
Illatter of failures for the month of April, when 16 firms
suspended, with aggregate liabilities of only $100,582. In
March, 1920, suspensions totalled 19 and indebtedness
. 87~
1.00
.75
.90
$203,445, while the record for April, 1919, was insolvencies 24, liabilities 8226,206.
BUILDING.
Building contracts awarded last month in the 9 reporting
cities of the district represented im outlay of $6,452,517,
which was 183% larger than the total of $2,272,311
for the corresponding month last year, and 15%
larger than the total of 85, 589, 236 for March, 1920. The
April permits brought the total value of the current year's
building operations up to $23,180, 801. Detailed statistics
are presented below.
APRIL BUILDING PERMITS
~~!~i~o-;;t....::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
No.
Dallas ....................................................................................................... .
EI Paso ....................................................................................................
Fort Worth ........................................................................................... .
Galveston ................................................................................................ ..
lIouston .................................................................................................. ..
San Antonio ........................................................................................... .
Shreveport .............................................................................................. ..
7
138
117
140
172
344
332
272
133
Total .............................................................................................. ..
1,655
1919
Valuation
No.
2,025
106,441
235,050
126.133
825.587
93,597
354,370
331,330
197,778
11
149
226
152
260
312
383
188
187
$2.272,311
1,868
$
1920
Valuation
$ 27,900
Inc. or
Dec.
227.192
1,081,252
436,139
1,757,643
83,550
2.209,036
283,885
345,830
+1,282.2
+113.4
+360.0
+245.7
+112.8
-10.7
+523.3
-14.3
+74.8
$6,452,517
+183.9
This summary of agricultural and commerical conditions
iIi the Eleventh Federal Reserve District is issued in the belief that a conciie review of trade will be of interest to our
member banks" business men of the district and friends of the
Federal Reserve System.
The information given· is obtained by the Federal Reserve
Agent from sources believed to be reliable.
Those desiring the letter furnished them regularly will recieve it without charge upon application~ ,
@FedFRASER