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:"111111111111.11111 11.1.111 . 11111 •• 111 ••• 11.1 •••••• 11.11111111 ••• ,.11111111.11 •• 11.111 ... 11.1 ... 111 .... 111.1111.1111111111'11""111.1".111111.1.1.11.111 ... 1.111 ••• 1 •••• 111 1"1'1.1'11, ••• 1111.1.1 ••• ,1'1 ••• 11 •• 1 •••• 1 ••• , ••••• 1""1.11111111111 •• , •• 11.;' MONTHLY BUSINESS REVIEW OF THE FEDERAL RESERVE BANK OF DALLAS c. CHAS. C. HALL-W. J. EVANS, C. WALSH, Chairman and Federal Resene Apnt Assistant Federal Rosene Acenta (Compiled October 15, 1926) : .11'1""111111111111111111111 •• 11111111111111111111',.11.1.111.1,,1.1 ••• , ,1.11,1.,111111111,11111,.1111.111 " ' 1'111.1111111111'1.1.1111 ••• 1.1111.11.1111 ••• 1,11111.11 ._. 1'1.11111111.1 '11 111"'11 •• 111111'1111111.11111 •• 1111111111111111.'11 •••• 111.1": ~""II""""I1I"'''I'''''''''III''I'II''II''IIIIIII''II''IIIIIII'"1I111111 .... 111111111111111111 .. 111111'11.111111" . . . 111.1 ... 1...... 111.1111 ..................... 1 ......... 111111 .... 11 .. 111111 .... 11111111111111111 ........ "1111 .. 11 ... ":1 .. 1 .. Volume 11, No.9 = Dallas, Texas, November 1, 1926 This copy released for publication in afternoon J)RJ)crs October 30 DISTRICT SUMMARY THE SITUATION AT A GLANCE Eleventh Federal Reserve District September August ~:;:r~~~~ t;:'u:~edi~~~:.~ ..~~.~~.~~...~~.~_~~ ..~~~.~~.~.~ ....::::..:..:.........:...............::: :.:.:.::::.:.:..:.:.::..~....:..:::~.::~:::::::...=:::::::~:::~::::.::. Inc. or Dec. $788,417,000 $696,888,000 Reserve Bank loans to member banks at end of month ................_........ _.................. _..........................._ $ 24,288,180 $ 26,380,617 Reserve Bank raticJ at end of month ................................. _.................................. _.......................... _.........._... 55.7% 51.8 % ~ :: ~~~: ~~:~~ Dec. Inc. 8.0 % 3.9 points Oil production (barrels) .................. . ..... . . ..... ... .. . . ............. _......._......................................._... Lumber orders at pine mills (per cent of normal production) ........................... _....................................... Inc. Dec. 2.8 % 18 points g~a::~~i:r1~tl£:t~n£~i~C:~~:~:::~:~~?:~~::::::::::~:::::::::::::~::~:::::=:~::::::::::::::=::::::::::::::=::::=::::::=:::~::: : 7':::::ii 17,962,600 80% : 7':::::i~ gE: 17,552,488 98 % ~H~ : 8''''"11111 .. 1111.1.111 ..... 11 .. 1111111111 .. 111111.111.1 1 1.1111111.11111111111"111'1111111111111'111111111""1111'1'11'111'1"'.ll lIftllllllll'"""IIIIUIIIIIIII",III"I"IIIIIIII.II"IIIII.II .. 1'"1'11111111111"'11'"1111101111111111'11'1111110 The drastic decline in the cotton market, which carried prices to the lowest level reached since 1921, was the salient development in the business situation in this district during the past month. Concurrent with this decline there was a noticeable slowing up in trade activity and in the seasonal liquidation of indebtedness. The slackening in trade and collections, however, may be ascribed in part to the fact that the marketing of the district's cotton crop has been retarded by wet weather, bad roads and a shortage in the supply of cotton pickers. Despite these deterrent facton there is a strong undertone of confidence and stability in the business situation in this section, due largely to the aggressive manner in which business and agricultural lead· ers have attacked the problem of stabilizing the cotton situation, and also to the strength of the general position of agriculture ip this district as revealed by the government's valuation of its 1926 crops. Among the compensating fac· tors which tend to offset the severe decline in the market price of cotton is the prospect that low prices will greatly stimulate consumption, and that the farmers of the Eleventh District will be in a position to produce the 1927 crop at a minimum cost on account of the extraordinary yield of feed crops produced this year. The distribution of merchandise in both wholesale and retail channels continued large in September, in spite of the setbacks enumerated above. Department store sales reo fleeted an increase of 26 per cent, as compared to August and were 7 per cent above the same month last year. Whole· sale trade was in a slightly larger volume than in the previous month and was substantially in excess of a year ago. While retailers are at present restricting purchases to actual need, reports indicate that the volume of buying in the aggregate remains large. The financial and banking situation reflected the effect of seasonal influences. The deposits of member banks rose $28,826,000 between August 25 and September 22 but on the latter date they were $23,633,000 less than on the same date last year. While the loans o( the Federal Reserve Bank to member banks were reduced only $2,097,4.37 during Sep· tember there was a further reduction of $6,681,722 during the first half of October. The district's business mortality rate reflected a further substantial improvement. With the exception of June this year there were fewer failures in September than in any month since July, 1925, and the indebtedness of defaulting firms was the smallest reported during the past twelve months. Building activity showed a further decline during the month. The valuation of permits issued at principal cities was 3 per cent less than in August and was 16 per cent below that for September, 1925. The production, shipment, and new orders for lumber disclosed a substantial reduction as compared to both the previous month and the same month last year. The production and shipment of cement were less than in August but were considerably greater than a year ago. The district's labor surplus has been almost entirely abo sorbed due to the increasing labor forces in some industries and the heavy demand for farm labor. Many of the dis· trict's industries are running on full time schedule and increased employment was noted in the textile and cotton· seed products industries. Despite the falling off in con· struction activity, reports indicate that building tradesmen· are generally steadily employed. There is a heavy shortage of farm labor in practically every section of the district. CROP CONDITIONS ,Rains throughout the Eleventh District during the past tlllrty days have benefited soil conditions but the scarcity of labor has retarded fall plowing, the seeding of fall oats and wheat and the harvesting of crops. The Department This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) MONTHLY BUSINESS REVIEW 2 of Agriculture estimated that on October 1 the farm labor supply in Texas was only 84 per cent of normal, this being the greatest shortage noticeable in many years. The October 1 estimate of the Department of Agriculture placed the probable production of the Texas .cotton crop at 5,350,000 bales and that for the United States at 16,627,000 bales. In a number of Texas counties the crop is turning out better than was expected but in some counties the yield is falling short of earlier expectations. The lateness of the crop over a large area has caused the cotton throughout the state to open at about the same time, thereby causing a serious shortage of pickers. This situation has been aggravated by the fact that the cotton opened more rapidly than usual due to the lack of foliage in many sections. This condition subjects the crop to more than the usual hazard of wind and rain. According to the report issued by the Bureau of Census there were 2,049,000 bales ginned in Texas prior to October 1, as compared to 1,883,000 bales prior to that date in 1925 and 2,277,000 bales in 1924. Following the issuance of the October 1 report, which indicated the l~rgest production on record for the United States, the cotton market declined to the lowest point since 1921, which in turn has greatly discouraged the cotton growers. Plans are now under way to take a considerable portion of the crop off the market and a campaign is being inaugurated to reduce substantially the next year's cotton acreage. fell only 3 points to 84 per cent of normal. Grass and browse generally have been plentiful. The condition of sheep remained stationary at 90 per cent of normal and the condition of goats rose 2 points. Movements and Prices The September receipts of all classes of livestock at 'the Fort Worth market were in a larger volume than in the previous month but receipts of all classes except sheep were smaller than a year ago. The cattle market continued weak and again the general run of receipts worked to a slightly lower level. When reo ceipts fell off or when shipments of choice quality arrived, prices were bid up but such gains were lost when supplies became more plentiful. Calves were usually in good d(:~ mand and cleared at satisfactory prices. Prices declined toward the middle of the month but later the market strengthened and the losses were more than regained. Dur· ing the first half of the month hog prices continued the up' ward movement noted during the last half of August but the market turned dull and at the close the best were selling at prices under the previous month's close. Sheep and lamb prices worked to lower levels. ,.,"," '11111' 11111111111 II 1111 111111111111'"'1 till f i l i i . I. 'II I I " I I I 1 1111111111111111 1 11111 11"111"" II 111,. It '1.,111 1 FO~f;WOR';;<VE"~;;, REe;;;, ":l:,~ :,_",:! The corn crop is being harvested in all sections but progress has been slow due to the shortage of labor. Yields are proving very satisfactory and in many instances compare favorably with those of 1919. Present indications point to a total production of 108,612,000 bushels for Texas. The past month witnessed a slight decline in the prospective production of grain sorghums in Texas, the October 1 estimate being 49,885,000 bushels, as compared to an indicated yield of 51,852,000 bushels on September 1. While some of the late planting in the northwest may not mature if frost comes early, the other portion of the crop has done well and much of it has already been headed or shocked. In some instances the heavy rains have injured the yield and grade. The Texas rice crop was estimated at 6,142,000 bushels on October 1, as compared to an indicated yield of 6,067,000 bushels a month earlier. The early crop is showing a good yield but the late crop is not yielding so well. The weather for harvesting has been generally good but labor has been scarce. .,: Cattle ._.............74.900 Calves .............. 26.418 Hogs .................. 18.867 Sheep ............... .48.980 80.848 86.345 15.669 83 .987 L L L 6.943 9.927 1.802 G 14.993 68.828 20.268 12.247 21.372 G 16.077 G 6.150 G 1.620 G 27.608 1!l ,IIIIIUIIIUlllllllllllllllllllllltliIlUIIII'IIIIIIIIIIIIIIUIIUIIIIIIU • ... , ..... 1111 .. " " " , , , , , , , , , , , II II ro .. :.:1 u""'W [E].II.'.I •• IIIIIII."'." •• I •••• '.' ••••• I.,III.III.1111 •••• 111.1 •• ' ••••••• "1.111111111 •• 11' • • • 11 •••• 1 ••••••••••• III".I.(!l 1. . E : : :: ; :: : :: : COMPARATIVE TOP LIVESTOCK PR'ICES Sept. Sept. 1926 Beef steers ............................................... _.........$ 8.50 Stocker steers .................................................... 7.75 Butcher cows ...................................................... 6.00 Stocker cows ...................................................... 6.00 Calves .................................................................. 10.50 Hogs ................................................................._... 16.00 Sheep .................................................................... 8.00 Lambs .................................................................. 13.75 1925 $ 8.10 7.00 6.00 4.00 9.60 18.90 8.50 14.00 .!.' August 19z6 g $ 8.10 : 7.26:: 7.00:: 5.00:: 10.76:: 15.00:: 8.60: 14.00: @.IIIIIIII ... IIIIIII.IIIIIIIIIIII.IIIII.IIIIIIII I IIIIIIIIIIIIIIII1I11111111IIII1III1UIIIIU.IIIIIII1IIIIIIII1III1 I1I I . S Cotton Movements Receipts of cotton at all United States ports since August 1 this season have shown a slight increase over the same period last year but exports declined approximately 14 per cent. Stocks at these ports on September 30 this year were 63 per cent larger than on the same date ill 1925. G,IIIIIIIIII.IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII .. IIIIIIIIII I III.IIII.IIIIIIIII .......... ' " I •• I'I .... I ... IIIIIIIII' ... II£:) LIVESTOCK While the lack of sufficient rainfall in some sections of the district caused a decline in the condition of ranges and livestock during September, the recent rains have largely supplied the needed moisture and conditions are improving. Over much of the district, both range and livestock are in good condition and in other portions the recent rains should soon make good fall and winter weeds and grass. Ranges generally are lightly stocked. Cattle ranges in Texas averaged 90 per cent of normal on October 1, reflecting a decline of 3 points during the month. The condition of cattle was 92 per cent of normal or a decline of 2 points. Although most of the sheep and goat ranges suffered from the lack of moisture, the condition § COTION MOVEMENTS THROUGH THE POR'!' OF GALVJ,;S'rON ~ :: Sept. 1926 i ~:~o~f:ei~~~ : : : ~:: : :: : : : : m:gJ~ ... § Stocks. September 80........ Sept. 1925 ~ ~ August 1 to Sept. 30 This Lnst· Season SeMon:: ::~:m ::~:m :?~:m! 328.945 174.85':: 811111111111'111111111111111111111""1111111111111"111111111111111111111111'111I11I11111111111Itlllllllltll1 l 'lllllIll[!l r;l"1UIIIII ••• '.III'. I UIIIII ••• ,IIIIIIII .IIIIIIIIII.1I1111 111 .. 1.11I1.1.1I111111.11.1 •• IIIIUIl .. II .. II .. IIIII .. U ..... F~ B,,,:::~:=~~"S"OC:S:A~71I- "~5:~:~ 0:0 0 G".' " For France .............................................................. 32.500 For other foreign ports.......................................... 74.200 For coastwise ports ......... _..................................... 18.000 In compresses and depots ...................................... 174.HS 167.429 . Total .................................................................. 328.945 174.854 ~ I::: :: : § 8"111111111111 IIti 111I1I".UIIIIIIIIIIIIII1I1II1111'UIlI1I1I1I1 """111111111111111111111111111 III1I1HIIIIIII'UII,e MONTHLY BUSINESS REVIEW ~IUII"'IIIIIIIIIIIIUUII"'II""I"'1I1111111111111111111111111111t1 3 111111111111 .. 11 .. 1" ............ 1111111 ............ 11111111111 .... 1111111111111.1111111111111111111111111 .. 1111111,111,11111111,111"11111111111.1111111 .......... 11111 ....... ~ 1118 CO'nON CONSUMED AND ON HAND ~: ~;;~~ON : :: :: Cotton consumed .................................................................... Cotton on hand Sept. 80 (al ~n cons'!ming establishments................................ (b m pubhc .torage and co'mpres.es.................... E • GROWING STATES t Augu.t 1 to Sept. 80 S ep . This Lnst 1926 SeMon Season Sept. 1926 UNITED STATES August 1 to Sept. 80 Sept. This Last 1926 Season SeMon 411.259 829.772 770.967 684.796 571.105 488.082 ............ ............ ............ ............ 669.952 3.116.169 689.096 8.094.624 ............ ............ ............ ............ 1071 767 • • 997.129 9.298.217 994.818 : 869.419 E 9.114.992:: 8111111111111 ... 111111111111.111111111 .. '111111'11.111.1111111 ................. 1111111111111.111 .... 111 .. 1111111 ............... 1111111111111111111111111111111111111111111'1111111111111111111111'111111"111111111111I111 ... IIIItI ..... IIIII.IIIIIII; .... I!J.~: .~: •. , .." .... , .." .." ......, , .. :::;:;::"::;:: . . Sept. 1926 Receipts-net .. ........................ 607.838 Exports ........................ _.......... 269.760 Stock.. September 30.............. § [!] .... ':::=:;;,. ,'.. . . . . . . . ""'00 Sept. 1926 629.229 252.201 August 1 to Sept.SO 'rhis Last Season Season 671.740 778.058 889.888 869.528 349.26' 892.8'8 IIIU .... IIII •• I1III1III1I1I1I1I1I1I1I1II1II1I1I1I1IIIII1.IIIIII .. IIIII •• 111I11I11'111.1.1 .... "IIIIIIIIII .... l I l l I m ~"I"'IIIIIIUIIIIU'IIIIIIIIIIIIIIIIIIIII"III"IIIt"IUIIIIIII"U""UIIIlIIIt'1""I'IIIIIIUU""IIIIIIItIIIl'~ :: :: : SEASON'S RECEIPTS. EXPORTS. AND STOCKS AT ALL :: UNITED STATES PORTS :: August 1 to Scotember 80 : ~ This Season Lnst Season ~ § Receipts since August 1.......................... 1.994.967 1.929.681 § § Export. : Great Britain ........................ 198.979 306.888 g • France .................................... 105.164 127.09~ • Continent .............................. 646.199 716.274 :§ J.upnn-China .......................... 98.912 66.326 Mexico .... ................................ 282 2 • §. 'rotal foreign ports .......................... 1.0019.636 1.2H.683 :~ 788.094 . Stocks in 1111 U . S. ports. Sept. SO ........ 1.287.16'1 CElII.IIIIIIIII ••• IIII •• '.'.'II ••••••••••••••• II ••• I'I.'11111111.1.,1111,11.'111111111111111,1'111 111111 •• 111' 1 •• t"IIIIII~ § : ~ HIUIU .... UIIII .... ,II .. UIlU .............. IIIIIII .... ' ...... II ... UIlU .... 1I11I ...... 11111111111111 ............. ~ I::: • E N.w § M mm':',,"":B~·.Hl:8!g.~09ho;ber. 1 17":1~ Octob~~~:: ~: New OrleaM ................................................ Dalla. ................................................... ............ Houston ........................................................ Galveston ............................ .......................... 17.55 18.25 18.80 ., . 13.46 14.86 14.30 [!] 1 11 ~IIII'III'"I' 11111111 ....... 1111 .... 111, .... 1111111111 ........ 11111111111111111 ................ 1 .. 1111 .. '111111.Ill!) E STATISTICS ON CO'I'I'ONSl!1ED AND COTTONSEED ~ E PRODUCTS g § Texa. United States E : Augus t 1 to Sept. 80 August 1 to Sellt. 90 : Thi. Last This Last Season Season Season SCIUlon Cottonseed received C:tlo~~~d c~~~hsld""' " m.ooo 378.000 1.003.000 1.349.000 (tons) ........................ 210.000 194.000 698.000 602.000 Cottonseed on hand (tons) ................... _... 297.000 206.000 678,000 770.000 Crude oil produced (pounds.. .. ................57.972.000 66.606.000 156.111.000 176.786. 000 Cake and meal produced (tons) ............ 98.000 92.000 244.000 280.000 Hulls produced (tons) 59.000 64.000 H9.000 165.000 Linters produced (500.lb. bales) 36,000 36.000 96.000 112.000 Slocks on ha nd Sept. 80: Crude oil (pounds) .. .. 10.669.000 9.893.000 UI.504.000 31.458.000 Cake and meal (tons) 26.000 29.000 127.000 88.000 Hulls (tons) ................ 63.000 24.000 147.000 76.000 Lintel's (600·lb. bales) 16.000 10.000 76.000 48.000 0111111111111.IIIIIIIIIIIIIIIIIIIIIIIIIIUIIIIIIIIIIIIIIII.IIIIIII'1IIIIUIIIIIIII .. IIIIIIIIIIIII .. " .... IIIIIII. ,1I 1110 6 SPOT COTTON PRICES 13.26 12.40 19.85. 13.'0 ~ mUI1I1II1.,II.,II.,IIIIIU .... UIIIIIlIIII.IIIIU .... IIIIII ..... I .... 1I1I111IIIItllllllllltllllllllll""IIIIIIIIII"II£!) COTTONSEED PRODUCTS TEXTILE MILLING Increased activity was noted at the reporting cotton mills in this district during September. These mills consumed 2,001 bales of cotton in September, as compared to 1,943 bales in the previous month and 1,670 during the same month last year. The month's production was 11.3 per cent larger than in August and 24.7 per cent greater than in September 1925. Stocks and unfilled orders on hand at the end of September showed a further decline. Some mills report an active spot demand. £;1.• 111'111. It II II U Coincident with the beginning of the movement of this year's seed crop, many of the cottonseed oil mills in this dis· trict resumed operations during September. With the ex· ception of linters, the average price for products shipped from these mills showed a further decline from the previous month. Crude oil declined from $.1073 per pound in August to $.1031 per pound in September. Cake and meal sold at an average price of $26.51 per ton, as compared to $26.76 per ton in August, while hulls dropped from $7.85 pel' ton In the previous month to $5.20 per ton in September. The average price received for linters increased from $.0298 pel' Pound in August to $.0383 pel' pound in September. There ~vere 116,6541tons of cottonseed purchased by the 56 report· Ing mills during the month, for which an average price of $29.39 per ton was paid. rgJ . IIIIIII." III IIIIIU,UIIIIII. II fllIH 111111111.11'111111111111111111" If 111111 111111111' 111111" 11111 IIUIIIIII 111111 :.~: : COtrl'ONSEED r-1 PRODUCT1t~irJ:J' A::Pt::::.A~:8PRICE ~_: Crude oil .............................................. ~, Lintersn~~...~~~~...::::::::;::::::::::::::::::::::::. ij:~~is ................................................. Products A verage Price Shipped F. O. B. Mill 16.268.986 lbs. $ .1081 per lb. nm ~~: ..256.750 tbs. :: 2g~ :~ ~~ ~:: .OB88 per lb. 8'''11111111.,,1111111111111 ... 1111111111111111111111''''"111111111111111111111111111111111111111111111111'''11''11111 10 m ; § ;.'. : E 111111111111'111111 II 111111111111111111111'"111 1111011111111111111111111111111'"1111111 II "Utlll.til TEXTILE MILLING STATISTICS Sept. Sept. U26 Number bales cotton consumed.......... 2.001 Number spindles active...................... 65.616 Number pounds cloth produced .......... l.149.866 19 2.670 15 67.620 921.631 ~ August E 119.~~8 §: ". 68.616: 1.082.81' g (!lll till' 11 1 111111111111.1.111111111,111111" 11111111111.111 tit 111 , 1 tit II till t 111'"'111111' I t 111111111111111111111"1" 1 I!l WHOLESALE TRADE The strong demand for merchandise noticeable in August extended well into September but coincident with the rapid decline in the cotton market increased conservatism becanfe evident us retailers showed a disposition to restrict buying until more . definite information, regarding the effect the decline of cotton would have upon the consumptive de· In the reporting lines of mand, could be ascertained. trade, the September volume of business showed a slight gain over the previous month and was well above that for the same month last year. While buying during the latter part of September and the first half of October has been somewhat restricted and considerable irregularity is noted in some lines, some dealers report that the volume of orders for immediate delivery has been fairly good. Collections so far this season have been slow due in part to the lateness of the crop and in gart to the declin e in the cotton market. MONTHLY BUSINESS REVIEW 4 The distribution of dry goods at wholesale reflected a decline of 8 per cent, as compared to the previous month but a gain of 4..4 per cent as compared to September a year ago. Due to the uncertainties regarding price changes, retailers are showing increased conservatism in buying and are limiting orders to actual consumer demand. Reports indicate that spot business has been holding up fairly well. Following the strong demand for farm implements during July and August, there was a general decline in buying during September. Sales for the month were 13.1 per cent less than in August and 4.8 per cent below those for September, 1925. Due to the drastic decline in the cotton market, the demand for farm implements has been materially curtailed. Prices remained generally steady. The distribution of groceries at wholesale during September was 20.1 per cent greater than during the previous month and was 1.9 per cent larger than in the corresponding month last year. Reports, however, indicate that the buying demand has been . declining recently. Prices have shown a mixed trend, some items reflecting an upward trend, while other items are weak with a downward tendency. The outlook is reported as only fair. The September sales of drugs at wholesale reflected a decline of 1.7 per cent, as compared to the previous month but were 6.2 per cent larger than a year ago. During the latter part of September and the first part of October there was a decline in buying. Dealers report that the sale of holiday goods has been slow due largely to the uncertainty regarding the cotton situation. Prices have shown very little change. The past month witnessed a further expansion in the demand for hardware at wholesale. Sales were 22.2 per cent larger than in the previous month and 19.5 per cent greater than in the corresponding month last year. The increased buying was fairly general throughout the district. Reports indicate, however, that buying so far in October has been only fair and that the outlook is not as encouraging as earlier in the season. Prices have shown practically no change. 81 •••••••.•.••.•••.• ,•.•• "•• ,1, •••••••••••••••' •••• 11.· ••• ,,··· •• •........ ,., .............. 11 ................. I.,I.III,[!) :: CONDITION OF WHOLESALE T·RADE DURING SEPT., 1926 :: Percentage of IncrellBe or Decrease in E :: -Net Sales- - Net Sales- Stocks§ E Sept .• 1926 July 1 to Date, Sept., 1926 § :: compared with Compared with compared with :: § Sept. Aug. Same Period Sept. Aug. E :: 1926 1926 Las t Year 1926 1926:: § Groceries ................ + 1.9 +20.1 .6 + 8.8 - 1.4 § :: Dry Goods ... ........... + 4.4 - 8.0 .3 - 14.0 - 6.8 :: :: Farm Implements - 4.S -13.1 +29.7 + 6.7 +10.0 :: :: Drugs ...................... + 6.2 - 1.7 + 9.3 + 3.5 - 1.6 ;; E Hardware ................ +19.6 +22.2 +10.3 + 6.4 .8 E E I!JI ..... 11111111.11.1111 ......... II ... U'II II II II 111111111111111111111,.,1, "'11"11111111111111" 111111 UIIIIIIIIIII.II. ro RETAIL TRADE Department store trade reflected a further large seasonal expansion during September. Sales of 23 reporting firms were not only 25.8 per cent greater than in August but exceeded those of September last year by 7.3 per cent. Reports indicate that the unusually warm weather for this season has retarded to some extent the movement of fall merchandise. Stocks on hand at the end of September were 7.3 per cent larger than a month earlier but were 11.1 per cent less than a year ago. The percentage of sales to average stocks during the first nine months of 1926 was 177.2, as compared to 162.9 during the same period in 1925. Collections showed but little change. The ratio of September collections to accounts receivable on September 1 was 32.8, as compared to 32.4 in August. [!] 1,.,11.,.".,11' •• , •••• , ••• 111111, •••• ' •••••• '1'.'.111'1 •••• , ••• 111 ••••••• 111111.,1 •• ", • •••••• 1 ••• 11 ••••••• 111 ••• 1 •• 11111111"111111.111,.,1111,1'111.111111111111,11111.,1.111""""'1'1 •• ,.11,1 •• ,,1.1111.1'1"'"1111 .... II.I ••••• II •••• I •• , •• ,II ••• GJ Total S I a es September 1926, compared with September 1925..... ................................. September 1926, compared with August 1926............................................ Jan. 1 to date, compared with same period las t year.................................... Credit Sales: September 1926, compared with September 1925...................................... September 1926, compared with August 1926............................................ Jan. 1 to date, compared with same period las t year ..........._..................... Stocks : September 1926, compared with September 1925..................................... . September 1926. compared with August 1926 .......................................... .. Percentage of sales to average stocks in September, 1926 ...... ............................................................................................ Septe mber, 1926 .... ........................................... ............... .................................... DaJl88 + 8.1 +22.2 + 4.0 Fort Worth +19.1 +28.8 +13.7 Housu;n + 3.6 +31.8 + 1.9 All Others + 7.0 +27.1 + 2.0 Total District + 7.3 +26 .8 + 4.7 + + :6 +26.3 6.2 +24.7 +32.5 +22.0 .2 +52.0 1.7 + 7.4 +37.6 + 4.8 + 5.7 +82:6 + 6.7 - 14.6 6.9 + - - + 7.6 2.2 -16.1 8.4 -11.1 7.3 + 2.4 6.3 + + + 19.8 23.6 16.8 17.8 17.3 17.8 IS.. 23.3 18.1 21.6 159.8 179.2 9.4 143.2 147.1 7.4 177.8 187.3 11.3 173.6 192.4 7.2 162.9 177.2 8.5 29.9 31.8 36.0 36.6 32.8 Percentage of sales to average stock ~~~~:~~ t ~~ ~~:::::~:; :g; mL::::::::::::::::::::::::::::::::::::~::::::::::::::::::::::::::: Ratio of ou tstanding orders to las t year's purchases .... ... ... .. .... . Ratio of September collections to accounts receivable, due and outstanding September I, 1926........................................................................................ 0 ..... 1111 .. 1 ........... 1111.11.11111111111111 .. 1 •••• 11111 .. 1 .. 1111111111111111.111 .. 111 ..... "11 ..... 1111 ... 11111111 • ., ........... 111 •• 1 •• 1'1'1 '''''''1'''' ...... 1.1 •• I.ItIIII •• , •• "" .. "'.IIIIIIIIIII" .. ' •• II ..... I" ................................. FINANCIAL Charges to depositors' accounts at banks in sixteen cities in the Eleventh Federal Reserve District showed a gain of 13.2 per cent, as compared to the previous month and 9.5 per cent, as compared to a year ago. It will be noted that the increase was general throughout the district. Acceptance Market Acceptances executed by accepting banks of this district and which were outstanding on the last day of September amounted to $3,870,064.4.9, as compared to $3,784,417.19 a month earlier. The amount of these acceptances executed against S import and export transactions declined from $1,591,634.0,9 on August 31 to $1,200,091.21 on September 30, while those based on the domestic shipment and storage of goods rose from $2, 192, 733.10 on the former date to $2,669,973.28 on the latter date. Condition 0/ M ember Banks in Selected Cities The loans, investments and deposits of member banks in selected cities showed 8 gain during the five-week period ending October 6. Commercial loans increased $10,808,000 and loans on corporate securities gained $2,348,000. The net demand deposits of these MONTHLY BUSINESS REVIEW 5 ~II'I'III'I'IIIIIIIIIIIII"II'I"IIIII"I'I'IIIIIIIIIII '111111111111111111111'1'1'1111111111111"'111'111111111'111111111111111111.,1111111111111111111111,1'.,111.111111.,1,,1'1111,,111111111,.1.,.1111111111111 •• 1.111.11111 •••••••••• 1111 ••• 1.1111111.8 § § CONDITION STATISTICS OF MEMBER BANKS IN SELECTED CITIES Oct. 6, 1926 ~: i}~ng~~e~!ri~f!or!~~ed~~~~~:::::::::::::::::::::::::::::::::::::::::::=~:::::::=:~::~:::::::::::=:::::::::~::~:::::::::::::: $ S. All other stocks, bonds and securities owned ................................... _...... _... __........................ 4. Loans s ecured by U . S. Government obllgations ....... _............... _............................... _......... 6, Loans secured by stocks and bonds other than U, S, Government obligations................ ;~ i~:~~~~;~~~t:~~:~~:~~~::~.~~~:: :~ ::~~: ~ ~ ~ ~:~ :~~~~~:~::~: :~ ~ ~:~ :~ ~~~~~~~~ ~: ~ : ~ ~ : : ~: :~~~ ~ }O. R~ ~ 1. tlO Sept. I, 1926 6S,048,0~~ S 24,083,000 4,168,000 71,967,000 ~it~iii~~~~ payab e ~nd redIscounts WIth ~ederal Reserve Bank__ ........ _........_.................._........ of loans to net demand deposlts .......... _........................................... _............................... 10.462.000 93 % Oct. 7. 1925 51,m,0~~ $ 24,480,000 8,98S,OOO 69,609,000 ~il~iii~~~i 6S,960,O~~ 22,179,000 8,069,000 81,242,000 ~li~!!!~~~~ 12.823.000 93% 4.202.000 81 % mlll.IIII •••••••••••••••••• I •••••••••••••• , ••••••••• I.11, ••• '.' •••• , •••••••••• ' •••• ,"'."'.1."1.1""',.""""""1 11 """"." •••• ", ••• ,1",1",1,11",.,,1.""""",1""""11,1111,1,.,.,.,.1' •••••• '.1'1"'1.1.111.,IIIIIIIIIII., ••• I •• I., •• banks rose $12,575,000 and time deposits increased $920,000. Their bills payable and rediscounts with the Federal Reserve Bank amounted to $10,462,00 on October 6, which Was $2,361,000 less than on September 1 but $6,260,000 greater than on October 7, 1925. Sept. 1926 Austin .................... $ 20.055 Beaumont .............. 23.499 Corsicana .._.......... 6.908 Dallas .................... 223.840 EI 'Paso .................. 27.799 Fort Worth .......... 87.884 Galveston ............... 52.797 Houston .................. 178.851 Port A rthur .......... 9. 806 Roswell .................. 2.986 San Antonio ........ 44.796 Shreveport ............ 40.798 Texarkana ............ 10.686 Tucson .................. 8.459 Waco ...................... 19.963 Wichita Falls ...... 80.960 Total, 11th District. .....$788.417 Savings Deposits Reports from 94 banks in this district which operate a savings department reflected a gain of 1.3 per cent in the amount of their savings deposits over those on August 31, and 8.2 per cent over September 30, 1925. There were 247,529 savings dePositors on the last day of September, as compared to 246,· 360 at the close of August, and 232,84.7 at the end of September a year ago. Tc..tal. ............. _... _... _............................_.................. _ 94 247,629 8 ...... $113.998.109 Sept. 1925 $ 19.082 17.208 7.391 211.992 29.626 66.636 44.669 166.881 8.286 2.887 40.988 40.336 9.726 8.554 19.040 27.560 Inc. or Dec. + 6.1 + 86.6 - 6.6 + 6.6 - 6.8 t3 1.3 18.2 7.2 +13 .0 + 5.2 9.3 1.1 8.8 - 1.1 + 4.8 +1 2.3 August 1926 $ 14.692 22.109 6.472 186.910 27.664 88.988 46.796 146.994 '9.1GO 8.824 42.881 37.964 9.639 7.G61 14.538 31,197 Inc. or Dee. + 86.5 + 6.S + 6.7 +20.4 +.9 - 1.8 + 12.8 +21.8 + 1.6 - 21.9 + 4.6 + 7.5 + 9.S + 10.4 +87.2 .8 $720.086 + $G96.388 + lS.2 i 9.6 1111 .... 1111,.11,11111111.,1,.,.,1111.,.1.1.,.111.11,.,1111,11111111,1111111111.11 •• ,.,1111111111111., •• 232.847 ,.I!J 246.860 $106.865.774 $112.671.979 ".,.,1110 + 1.8 mlll.' •••• , ••••• I., ••• '.' •••••••••••••••••••• ,•••••••• ,.,., ••• ' •••• , ••• 11 •••••••••• , ••• 1••• , •• ,1., •• ,11,."11.1.,1,1,,11,.,11.1111'""'.11,,1.,11 •••• 1•••••• 1,1 •• 111 ••••• ,1""1.,.,1'.'111., ••• ,1 •• ,'1 •••• 111, •• ,1' •••• 1.'.,I.'.'.I •••••••••••••••••••••• 1!l ~ OCTOBER DISCOUNT RATES Prevailing rates :: I - Dallas ~ ii"es!~v:o~ctel~~~~~~...~~~._~~d~.~~.~~~ ...~~.~.~.~....~~~~. .~.~.~~.~~! ~ :: :: ~ ~ EI Pasd Fort Worth Houston San Antonio ! Waco Rate charged customers on prime commercial paper such Rate charged on loans tel other banks, secured by bills R!~~e~~a~~"an'B...B~~~.;;;~Cb; ..p~i~~..B.t;~k..~~.~h;.:;;g"c;....:;~-'':;the;: current collateral (not including lonns placed in other rnarkets through correspondent banks) : (a) demand ................... _ ......... _... _........_........_........... _....... I ::~~::. ::~:.~~~t~;~~~;;~:~!:~~~:~~;~~;:~~~~;:~~~~~~~?~ 5-6 8 6-7 5-G 6·6 6 5-6 6·8 5 ~". 6 6 'hoi 5-6 6-7 8 6-7 5·6 6-8 ::i 7 ,; ;;i ;;; ;;; 6·8 ~ ~ :: : ~ ~ ::: I [!I ...... U.IIIIIIIIUlt.IU ..... I.I ..... IIIIIIIIIIIIII.,.,IIIIII., •• ' ...... UIlIlIl.,11.,.,11.,.,1.111111 ..... ,1, •• , •• ,111111111111 ..... ,1111 ......... ,11 ... '"111111111111'"1'1'11111"1'"111'11'"1" 1""1",, ••• 11111111111111111111111"''''''''1111'0 Deposits of The deposits of member banks in this disMember Banles trict have shown a substantial increase coincident with the heavy movement of the ~otton crop. Their net dem~nd deposits increased $28,~71,000 between August 25 and September 22 and their hme deposits rose $4.55,000. Their combined deposits on September 22, however, were $23,633,00 less than on that date a year ago. Due in part to the lateness of the cotton crop in a large area of the district, Federal Reserve Bank loans to member banks did not show the large reduction which usually occurs in September. On the last day of the month these loans amounted to $24.,283,180, as compared to $26,380,617 on August 31, or a net reduction of $2,097,4.37. On September 30 last year these lo·ans amounted to $7,648,597. During the month there were 68 banks which completely Operations of the Federal Reserve Bank MONTHLY BUSINESS REVIEW 6 8 11111.1.1111.1111111111'11111111111111111111111111111111'1.1111111"1.'11111111111111111"1111111'111111111111.IIIIII.tlEl :: DEPOSITS OF MEMBER BANKS I Bnnks in cities Bnnks in cities Total with n populn. with a popula. tion of over tlon of less Time 16,000 than 16.000 Total ~emand Sept. 28. 1926 ........ __ Oct. 28. 1926 ............ _ Nov. 25. 1926_........ Dec. 28. 1925 ................ Jan. 27. 1926............ _ Feb. 24, 1926 ............ __ March 24, 1926 .... ___ ... April 28. 192G .............. M ay 26. 1926 ...... _. __ ...... June 28, 1926 ............... July 28. 1926 ........._............. A ug. 25. 1926 .. _...._.._ Scpt. 22. 1926................. - :: r-- 682,78' G67,418 67 •• 607 668.749 659.81S 65 '1.008 637.892 605.845 598.488 588,075 689,748 584,468 612.884 Demand 169.416 29G,77'7 1GG,601 318,302 166,821 822,218 168.290 816.648 167.880 308.899 171.02( 308,850 1G9.169 287,084 165,G68 272,889 165,099 265,618 IG6'8271259'6 ~ 0 16fi,299 262 .499 161\.277 267,886 IG5.732 27u.780 I Time Demand .7,586 48,393 46,861 46,190 44,446 44.722 45.557 45.178 44,688 45,085 H.987 45,407 45,640 Time - 120.526 322,G64 336,007 121.022 349,111 120,740 852,29' 120.681 352,106 118.844 850.914 122.G08 350.658 125.467 850.80R 128,981 888,456 121.085 832,870 120,014 828,446 121.800 82G,577 119,870 387,054 120,092 October loans have been reduced at a rapid rate and on the 15th they stood at $17,601,458, or a net reduction of $6,681,722 during the two·week period. On account of the increase in our investments in bankers' acceptances, total bills held reflected only a slight decline from $37,843,510.33 on August 31 to $37,289,866.04 on September 30, distributed as follows: Member bank collateral notes secured by U. S. Government .obligations ......................................... ......... _ ........... _........... .. _...$ 6.030.8~0.OO Rediscounts and all other lonns to member bllnks ........................ 19.262.829.65 Open mnrket purchases (Bankers' Acceptances) ........................ 18.006.686.89 'fotnl bills held ....................... ............ ..... ............. _....................... $37.289.86e.0~ mlll".'III.,.III ••• I"".""' •• I.I.'.' ••••••• I •••••• '1111' •• 1.,111111.1'111.111111111"'.,11' •• 1111111" ••• 1111111111 1f!] retired their lines at the Federal Reserve Bank. On the last day of September there were 328 banks owing the Federal Reserve Bank, as compared to 364, a month earlier and 152 on the same date in 1925. Since the first of Reflecting the seasonal demand for currency there was a further rapid expansion in Federal reserve note circulation. The actual circulation of these notes which amounted to $49,287,055 on September 30 was $7,585,925 greater than on August 31 and $3,239,060 greater than on September 30, 1925. The daily average of reserve deposits of member banks amounted to $56,527,559 in September, as compared to $55,908,146 in August. FAILURES The past month witnessed a further substantial improve- since September last year. There were 44, defaults during ment in the business mortality rate in the Eleventh Federal the month with liabilities aggregating $4,31,900, as compare'd Reserve District. In only one month of the current year were there fewer failures than in September and the indebt- to 50 insolvencies in August with an indebtedness of $682, edness of defaulting firms was smaller than in any month 086 and 4,6 failures in September 1925, owing $412,370. PETROLEUM Despite the thirty day month, the production of crude oil which 555 were producers of oil and 25 were gas wells. in September in the Eleventh Federal Reserve District North Texas and East Central Texas districts registered the amounted to 17,962,600 barrels, surpassing the high record largest gains in production for the month. The Panhandle in August by 566,209 barrels. Field work continued at field whose yield reached a new high mark in September practically the same rate as in the previous month, there was responsible for the increase of the North Texas area, being 880 completions during September including 604 pro· while that of East Central Texas was due to increased output ducers which added 204,694, banels of new production. of the Nigger Creek field. Production of oil of the This compares to 84,9 completions in August, of which 558 Spindletop field declined from 2,141,325 barrels in August were successful with an initial flow of 217,230 barrels. to 2,032,860 barrels in September. For the fourth consecu· The total output of Texas fields rose from 15,798,350 tive month the total output of the North Louisiana area barrels in August to 16,266,850 banels in September, l·ep. reflected a decline over the previous month, 1,695,750 bar· resenting an increase of 32,604, barrels in the daily average rels of oil being produced in September, as compared to run. There were 807 completions in the Texas fields, of 1,754,133 barrels in August. 8 · 1I11I1I1I1I11I1I1I1I11t1l11l1l1lUllllllllffllltlllll ll llllllll' " IIIIIIIIIIIIIII'''11I ...... 1111 .. 11111111111 .... 11111111111 .. 11111 ...... 11'11""111111111111111111111111111111" .. IIlItfUtllfl .... II ......... Ulllllffll .. IIIU ..... UIl .. 'II .... UI'[!J :: ~ OIL PRODUCTION !~~~~§~t~.~~:;:: i·,:f i~.:l~ m:!tlr· !:lli~i"'~:jr:lnt T~i!:,m~. D~:I;:' ~i~7.i! . :. :1 Southwest TexllS ........................................................ .. ~ ------- Total. Texas .. ................ ......................... ,........... North Louisiana........................................................... 8' ... 16,2G6.850 1.695,750 542,228 66.525 17.962.600 'l'otn.l. District.... .................. .. ..... .............. ............ ~ 598,758 SEPTEMBER DRILLING RESUL'I'S ComFieldpletioll8 N th T 423 C:~tral-W~~~ T~~;;~ 237 EtC t I T 29 E:: t· ~~~.~ 7 TexRhs Coastal.................. 73 So ut west 'I'cxns ............ 15 'l'exns Wildcats ...... ........ 23 Total. Texas .................... 807 North Louisinlla ............ 73 .. ·:::::: i:x!! .... : 15.798,850 1,754,133 509,624 Inc. 66,585 Dec. 468,500 Inc. 58.883 Dec. 82,6001 60 17,552.483 566,209 Inc. 410.117 Inc. 82.644 I I I I I I I ' I . I I I I I I I I I •• , I I I I I I I I U I I I " . I I I I I I I I I I I I I . I .. II .. " ••••• 'UIIl ... I I I I " . I I I . . . . . II . . . . . . . . . . " . . . . . . . " I I I I I I I ... 111t1111111 .. I I ' ' ' •• , I I I . ' . I I I I I I · . I I I I I . . . . I I I I I I I I I I I t I . ' I ' ' ' ' I I I I I I I . . . . . . . . . . . . . . . . . . . . . I I I I I I I I I ' .. I I " . . . . . . . . . . . . . . . [!J .••• IIIIIIIIIIIIIIIIIII.IIIIII •••• ,.I ••• II.I.I.I.111111111.,.1 •• 1.1""111"1.1.1111.111.1,111.1 •••••• 1111.111 •• IIII ••• : §:~ ------- .. ::.:... . . . Sept. totals, District...... 880 August tota.ls. District .... 8·19 Producers 307 160 24 Gas Wells 9 • 58 8 2 555 49 II 1 25 9 20 227 1& 864 658 84 25 242 266 m ~ FailInitial urea Produc~on ' 107 55,320 73 27.UO 6 21,700 6 GO,79ft 17 1,87& 1.030 197.8&1 7.081 : :~ 20.,69' 217.280: [!JllltlIIIIIIIIU.""IIIIIIIIUIIIIIIUIIIIIIIIIIIIIIIIIIIIIIIIII.U .. UIUUU.III1I1II1I1I1UtllIlIlIlIlIlIllI"IIU I ' 8 ~ I!) (!l ' III.,lllt'IIIII' •••••• ,II ••••• IIIIIII., •••• • •• , • • III, •• ,11'111,.'11 •• ,1111 •••••• 111111 ••• 11.1 ••• 11 ••• '1, •• 111.11 ••• II.ro • § CRUDE OIL PRICES 'fEXA&- Oct. 8, Oct. 9, 1926 1926 Tcxas Coastal (Grade "A") ............ · .......... .... ...... ............. $1.40 $1.50 North nnd Central 'l'cxas (62 gr. lind above ) .. .... ........ 8.57 • Tex"s Panhandle (39 gr. and nbove) .............................. 1.90 'Prices for October 8. 1926, not nvailahle n comparable baa is. LOUISIANAOct. 8, Oct.9. 192G 1925 Cuddc (38 zr. and above) .............................. .... .. _...... ...... 2.40 1.95 Bull Bnyou (as gr. lind nbove) .. .. .... .................... .. .......... .. 2.2" 1.75 Homer (35 gr. and above) .... _.... _........... ............. .. ............. 2,20 1.75: Haynesville (88 gr. and ..bove) ....................................... . 2.10 1.65 ::' De Soto crude .............. .. .............. .. ................ .. ...- ...... .......... 2.80 1,88 On 1!J •• '.• II .. IIIIU.UIU.IIII ... IIU ...... IIIIIII .. UIlIlIt ....... IIIIU .. UIl ... 1111 .. 111111 .. 1111111.''' ... 1111 .... ''11 . [9 (Oil statistics ccmpiled by The Oil Weekly, Houston, Texas.) r I 7 MONTHLY BUSINESS REVIEW LUMBER As reflected by the decline in the activities at Eleventh District pine mills, the demand for lumber during September was less active than in the immediately preceding months. The actual production of these mills declined from 10 per cent below normal production in August to 16 per cent below normal in September. Shipments of lumber were 15 per cent below normal production for September, while new orders received at these mills reached the lowest level of the year, being 20 per cent below normal production as compared to 2 per cent below in August. Due to the excess of shipments over actual production, stocks on hand at the close of September declined to 26 per cent below normal as against 23 per cent below normal at the end of August. Unfilled orders on the books of 52 reporting mills amounted to 64,251,058 feet on September 30, as compared to 69,776,882 feet on August 31. 8 [!] . I.I.,IIIIII"IIICIIl •••• flll ..... IC.fll ... UU ........ ,U .. UIl ...................................................... Number of r eporting mills........................................ 62 Production .................................................................... 97,891.481 feet ~~~e'::'sen~~..:::::::::::::::::::.::::::::::::::::::::::::::.~:::::::::::::::::::::: 8::g~::gJ: Unfilled orders. September 80 .................................. 64.251.058 feet Normal production .... _........................................... _.116.843.655 feet Stocks. September 80 .................................................. 2.4.862.918 feet Normal stocks ................................. _ ..................... 380.674.873 feet Shipments below normal production ...................... 17.246.977 fcctr-16% Actual production below normal... ......................... 18.952.224 feet- 16o/. Ordel's below normal production._ ........................ 22.878.722 feet- 200/0 Stocks below normal................................................. 86.711.460 feet-26% f:i 8..... 1111 .. 111111 ..................... " •• 11, •• 1111 ... ,111 ... 1111111 ••• 11111.111, •• 111 •• ",.,1111111".'.""1111'.111 ,8 BUILDING Construction activity as measured by the valuation of bUilding permits issued at principal centers of this district during September declined as in each of the three preceding months, and reached the lowest level since February, 1925. The September valuation of permits issued at these cities amounted to $7,020,157, as compared to $7,24,6,065 in l!J.tt ! . August and $8,384.,202 in September last year. However, the aggregate cost of permits granted during the first nine months of 1926 was 12.1 per cent in excess of those issued during the same period of 1925. It will be noticed that only four cities showed a smaller valuation for this period of 1926, as compared to the same period in 1925. III III III 1 II 11.11.11 111111111111"'1111111111111111'1"11111111"111 1 11111111 flIIIIIIIIU'111111I II II IIII It 111111 U' .11 .. 11 fill .. 111111. Ii 1111111111 t 1111111111111111111. f 1111111111111 tllllllIllIlllllIlllIllllll.llllllllllllllllllllllllllllllllllllm "~~:;'" No. Austin .................. Beaumont .............. Dallas .................... EI Paso ................ Fort Worlh .......... Galveston .............. Houston ......._....... Port Arthur............ San Antonio ........ Shreveport ............ Waco ...................... Wichita Falls ........ 36 $ 61.919 170 228.342 289 496.392 49 140.405 815 1.246.368 228 320.138 461 1.741.665 124 79.254 210 466.098 280 1.676.484 27 68.247 122 486.866 I.:.~LDINGA;;;: 'I::;.... Valua.t10n Valua.tion Bee. 69.657 99.486 2.611.204 800.228 1.187.285 97.912 1.976.828 82.988 606.976 884.684 72.690 495.020 - 11.1 + 129.6 - 81.0 - 82.6 + 9.5 +236.2 - 11.9 4.4 - 23.2 +401.1 6.1 1.6 No. 65 137 484 70 246 300 620 188 326 261 89 169 $ No. 56 135 893 61 236 268 491 102 238 2~~ 161 ITS Valua.tion $ 202.843 130.2(9 1.547.871 197.820 984.788 209.292 2.178.579 108.609 604.480 478.666 97.010 516.569 I,. " Dee. - 69.4 + 76.8 - 67.11 - 29.0 + 26.5 + 57.8 - 20.1 - 23.4 - 22.9 +254.0 - 29.6 6.8 " "N;,. Mo.", "" No. Valuation 898 1.530 8.278 665 8.005 2.389 4.428 1.108 2.698 2.805 349 1.505 , 1.021.659 1.892.457 18.787.135 1.007.959 14.335.003 2.928.003 22.446.292 1.088.646 10.668.377 4.769.987 971.122 7.971.256 lEl"" •• lllt"I •• " •• " •••••••••• I.I ••••••••• """""1111111 ••••••••••• UII •••••••••••• ,IIII'I • •• 'IIII.IIII.1""",.,1, •• ,.,.""1'. ,.11 ""'.1"""1, ••• ,,11,,,"""1""""""" No. Valuation 422 $ 1.062.799 1.479 1.255.476 4.370 22.005.138 694 1.988.471 2.090 7.344.407 2.614 1.888.966 4.946 19.447.785 1.216 911 .199 2.948 7.302.772 2.264 4.504.508 649 1.627.216 1.230 4.696.241 i 't bo." Dee. - +' a.1I 10.9 - 37.6 - 47.8 + 96.2 +111.2 + 16.4 + 19.6 + 44.7 + 5.9 - 40.3 + 78.4 •• ,1'11",.""""",.1' 1. , ,1.1 •• ".I."I'.,I.,I •• '.,II ••••• ,.'lltG CEMENT The production of Portland cement at Texas mills was practically the same as in August, but was above that in the corresponding month of last year. There were 437,000 barrels of cement produced during September, as compared to 440,000 barrels in August and 399,000 barrels in the same month of the previous year. After increasing for three months, shipments during September reflected a decline of 11.3 per cent as compared to August, but were 17.7 per cent greater than in September, 1925. Although stocks on hand continued to decrease, the decline in September was considerably less than in the preceding months. However, it will be noted that stocks held at the close of September were 44.8 per cent in excess of those on hand at the end of the same month last year. For the nine months of 1926, as compared to the same period of 1925, there was an increase of 5.8 per cent in the production of cement and an increase of 4.6 per cent in shipments from the mills. ml,.tll ••• II.,I.I., •••••••••••••••• I •••••••••••••••• "1,1 •• ".1.,.1.111.""1111",'111,'111',.'1.,, •• ,11 •• ''1"."., •• 1.11 ••• ,1,. 1111111".""'1"'11"'11111,,1,1"1"""'.11111.",1,1.,1.,11.1,1, •• 1'1.".11'.,1.,1II.I •• , •• ,III'I.,IIIIIIII.,.I •• ~ Septemb~r § ~ :: : mil ,I'E E PRODUCTION. SHIPMENTS, AND STOCKS OF PORTLAND CEMENT (Barrels) Production at Tens Mills........................ Shipment's from Texns mills................... Stocles nt end of month nt Texas mills.. Septomber Inc. or Aultllst Inc. or 488.000 417 .000 872.000 288,000 !e::5 +17.7 +44.8 494.000 418.000 !!..ee·.7 - U .8 .2 4;;.~~0 8::.~~0 .i:.~~o Nine Month. Inc. or 8';::.~00 ;.~;~.OOO D~.6.8 3.865,000 8.687.000 +4.6 II III "1111111111"'" 1111'11111'" .,"" """ til" III 11"" 1111. "" fll"""'11 H' .,., '" ""'11' 1111111" 111.,1111'1 .. 11,.11"1.111111111111111111111111" filii. I .1111.1111.11111 ..... 111111111111111.11111111 1111".'1.1'1111,.,.11111111111"11111 § i :: : I!J MONTHLY BUSINESS REVIEW 8 SUMMARY OF NATIONAL BUSINESS CONDITIONS (Compiled by the Federal Reserve Board Industrial and trade activity increased in September and is at present in considerably larger volume than in midsummer. The price of cotton has declined sharply within recent weeks while prices of most groups of commodities have advanced. Volume of bank credit has increased seasonally, and money rates have remained firm_ PRODUCTION Production in basic industries and factory employment and paYlOlls, according to the Federal Reserve Board's indexes, after changing but little for about four months, advanced in September to the highest points since last spring. The increase has been particularly large in textile mill activity. Consumption of cotton has increased considerably, woolen mill activity is the largest since January, and employment has increased in nearly all branches of the textile industry. Iron and steel production was maintained from early in August until the latter part of October at a level higher than for the corresponding period of previous years. Automobile output was reduced in September but continued larger than a year ago. Mining of coal 'has steadily increased since midsummer,. and the weekly run of crude petroleum from wells in October reached the highest level since June of last year. Building c.ontracts awarded during August and September were only slightly smaller in value than the awards for the corresponding period of last year and in the first half of October far exceeded those of a year ago_ A substantial decline in contracts for residential structures has been largely offset by increases in awards for industrial and engineering projects. The Department of Agriculture's October 18 estimate placed cotton production at 17,4.54,000 bales, an increase of about three quarters of a million over the estimate made on the first of the month and of 1,350,000 bales more than last year's crop. TRADE Wholeiale and retail trade increased in September and was slightly larger than last year. Inventories of department stores increased slightly more than is usual in Septem- 118 of October 26, 1926.) ber and at the end of the month were about the same volume as a year ago. Railroad freight car loadings reached neW high weekly records in September and shipments were maintained during the early weeks of October in much larger volume than in previous years. A great part of the increases as compared with last year is due to shipments of coal and ore, but loadings of manufactured commodities have also been larger. PRICES The general level of wholesale prices advanced slightly in September and October, notwithstanding the drop in the price of cotton to the lowest level since 1921. The Bureau of Labor Statistics index of wholesale prices were about one per cent higher in September than in August, reflecting ad· vances both in agricultural and in non-agricultural comm.odities. In recent weeks prices of corn, nonferrous metals, and paper have declined, while prices of livestock, meats, poultry and dairy products and bituminous coal have increased. BANK CREDIT Between September 22 and October 20 the seasonal increase in the demand for credit for agricultural and com' mercial purposes was reflected in a continued growth in the commercial loans of member banks in leading cities. Loans on securities and holdings of investments declined, but the banks total loans and investments were about $60,000,000 larger on October 20 than four weeks earlier. At the reserve banks, the volume of member bank borrowing, after considerable fluctuations in response to temporary conditions, was in October at about the same average level as in September. There was little change in the banks holdings of D_ S. securities, while acceptance holdings continued to increase as is usual at this season. Except for a temporary firming around the first of October, there has been little change in the condition of the money market. . Rates on commercial paper and on acceptances have remamed at the levels established in September.
@FedFRASER