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OF THE

FEDERAL RESERVE BANK OF DALLAS
C. C. WALSH

CHAS. C. HALL-W. J. EVANS

Chairman and Federal Reserve Agent

Assistant Federal Reserve Agents

(Compiled October 15, 1933)

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Dallas, Texas, November 1, 1933

Volume 18, No.9

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This copy is relensed for publi- Oct. 30
cntion in nfternoon pnpers-

DISTRICT SUMMARY
THE SITUATION AT A GLANCE
Eleventh Federal Reservo District
September
1US8
Ba~~ dobits to individual acoounts (at 17
nOltl(18) . •.. . •• ... • .•...•.•...•..•...•..••.

nepartment stere sales .......... .. ... ... ... .

es?rvo bank loans to member banks at ond
month ............ .. .. . .... ..... .. ... .
B~orve bank ratio at ond of month ...... .. . .
Cullding ~rmit valuation at larger contors ... .
CommerCial failuroo (number) ............. . .
O~mmoroial failures (liabilities) ............. .
-!. production (barrels) ............. ..... .. .

n0

$407.315.000
$ 3.163.364

08.0%
615.385
17
S 588,021
34.501,500
$

Chango from
August

+ 13 .8%
+ 12 .8%
- 25 .6%
+ U.2 poInts
- 33.0%
- 67.U~
%
- 65 .5
- 12.U 0

~IIIIU'11l11l11l1l1l11ll1l1l11l1ll1l1ll11111111111111111111111\1I11111111111111111111111111111111111111IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII~
An increase in the indicated production of several agri·
culLural commodities and returns from the marketing of
COLton and other cash crops auO'mented by receipts from the
~gricultural Adjustment AJ~irJ.stration, stin:lUlated th~ CO?·
~rner demand for merchandIse In rural sectIons of tIus dIs,
~l'lct. during September. Reflecting this expansion i~ rural
uYlng, sales in reportinO' lines of wholesale trade eVIdenced
a larger than seasonal in~rease over the previous month, and
mOst lines showed substantial gains as compared with a
lt ago. The improvement in collections was also larger
~ Ian usual at this season. Retail business in the larger cen·
crs, as reflected by the department store sales, showed a
b~1aller than seasonal increase between ~ugust and Sept~m.
r and was 7 per cent lower than sales m the correspondmg
lllOnth last year. Debits to individual accounts at principal
len LeI'S in this district durinO" September were 14. pel' cent
arger than in August, and 16 pel' cent greater than in Sep·
Lember, 1932.

Yt

There was a further improvement in the prospective agric~ Lural production durinO' the month due to the continuance
~ favorab le weather co:ditions. The most significant betjel'lllent occurred in the districL's cotton crop which, accOl·dg t~ the October 1 rep ort of the Department of Agricul.
Ure, lndicated a production of approximately 64.0,000 bales

t

~holesale

th:

f

Construction activity showed a further sharp decline during September. The valuation of building permits issued at
principal cities was 33 per cent less than in August, and
19 per cent under a year ago. A large increase in the production of cement was registered during the month but
shipments declined slightly. As compared with a year' ago
both production and shipments reflected a substantial re:
cession.

BUSINESS

A further increase in the demand for
merchandise at wholesale was in eviIi
dence during September. All reporting
es ~howed an expansion as compared with August and
in alnS were to a large extent non-seasonal in nature, ranging {om 9.7 per cent in the case of groceries to 35.9 per cent
te ~ 1e case of farm implements. Only one line failed to
glster an increase over September, 1932, and in the case
~rade

above the prospects two months earlier. Farmers are like·
wise benefiting from larger yields of other crops. Harvesting
of crops has proceeded at a rapid rate. Timely rains have
left the soil in good condition over a large area of the district, but there are some seclions where more rain would
be ~eneficial to. t~e gern~ination and growth of small grains.
Whlle the condluon of lIvestock and ranges has shown some
improvement, recovery from the effects of the summer
drouth has been slow and there are some areas which are
badly in need of moisture.
The past month witnessed a substantial seasonal reduc.
tion in memver bank borrowings at the Federal Reserve
Bank. These loans amounted to $2,258,000 on October 15
as compared with $4.,237,000 a month earlier, and $10:
331,000 on the corresponding date last year. The heav~
movement of funds into this district was reflected by the
sharp increase in the reserve deposits of member banks during the month, The circulation of Federal reserve bank
currency showed a rapid expansion between September 15
and October 15, the tOlal of $49,915,000 on the laller date
being $8,195,000 greater lhan a month earlier, and $12,074.,000 above a year ago. While the investments of member banks in selected cities declined somewhat between
September 13 and October 11, commercial loans reflected
a further substantial increase. The daily average of com.
bined net demand and time deposits of member banks evidenced a seasonal expansion of $7,997,000 in September
and ~e average for that month was only $12,226,000 les~
than m the same month of 1932.

of groceries, farm implements, and drugs lhis comparison
was more favorable than in the previous month. IncreaSing
confidence and expanding consumer demand have been visible in many sections during recent weeks, and retailers
have found it necessary to enlarge their purchases. Total
sales during the third quarter of the current year reflected
increases .over the same period last year ranging from 1.8
per cent m the case of drugs to 72.2 per cent in the case

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

2

MONTHLY BUSINESS REVIEW

------------------------------------------------------------------------------of farm implemenLs. Substantially larger collections, only
partly attributable to seasonal influences, were reported in
all lines during September.
A materially larger than seasonal expansion was shown
during September in the demand for drugs at wholesale.
Total sales of reporting firms in this district were 20.8 per
cent in excess of those in August and 5.7 per cent above
the level of September last year. Distribution during the
third quarter of the current year was on a scale 1.8 per
cent above that in the same period in 1932. Business
appeared to be fairly good in practically all sections. The
volume of collections increased by 9.4 per cent over that
in August.
The demand for dry goods at wholesale turned upward
again in September and showed an increase of 11.8 per
cent over the preceding month. However, the volume of
sales was 5.2 per cent under that of the same month last
year. Wholesalers reduced their inventories 3.1 per cent
during the month, but on September 30 they were 47.2 per
cent larger than on the same date in 1932. There was an
increase of 24..4 per cent over the previous month in col·
lections during September.
There was a considerable increase in the business of
wholesale farm implement firms during the past month,
and it was due in most part to factors other than those of a
seasonal nature. Sales were 35.9 per cent larger than in
August and 120.1 per cent greater than in September a year
ago. After falling off in August, the volume of collections in
September reflected a substantial increase.
Distribution of hardware through wholesale channels
during September reflected a seasonal increase of 10.1 per
cent and was on a scale 16.9 per cent higher than a year
ago. Aggregate sales in July, August, and September were
25.0 per cent larger than in the same period last year. Inventories on September 30 were somewhat smaller than
either a month earlier or a year ago. Collections during
the month were 8.2 per cent above those reported in August.
Sales of groceries at wholesale in September were seasonally larger than in August, the increase over both the previous month and the same month last year amounting to
9.7 per cent. Business continues to be somewhat better in
rural sections. Stocks were enlarged 5.7 per cent during the
monLh, but on September 30 showed a smaller increase

over a year ago than was shown at the close of August. C?l·
lections reflected a gain of 18.1 per cent as compared wIth
the preceding month.
:!J IIII IIIIIIIIIIIII IIIIII IIIII I I IIIII II III I IIII I IIIIII IIIII1I 111111 111111111111111 1 1 111111 1 11 11I1111111 111111111111111111111111111111111111111111 1 111 111111111111l1l~
CONDITION OF WHOLESALE TRADE DURING SEPTEMBER, 1038
Percentago of increaso or docrCIIBo inNet Sales
Not Sales
Stocks
Ratio of coll oo•
Sept., 1083
July 1 to date Sept., 1038 tiona during Sept.
d
compared with compared with compared with to nocoullUl
Sept., Aug., .nmo period Sept., Aug., notes oUUltan ,"g
1082
1988
I..t yoar
1032 1033
on Augu.t 31
Grocorica ......... + 0.7 + 0.7
+ 10 .5
+22.6 + 5.7
75. 0
Drygooo. ........ - 5.2 + 11 .8
+32.6
+ 47 .2 - 3.1
27 .5
+72 . 2
+ 4.6 - 1.5
5.7
Farmimplcmenta .. +120.1 +35. 9
+25. 0
- 2.3 - 1.1
35.5
Hnrdware .. ...... + 16 .0 + 10 .1
Druga .. ... ....... + 5.7 +20.8
+ 1.8
- 0.5 + .7
38.8

t"

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While the demand for merchan d' at
ISe f
department stores in principal cities. 0
the Eleventh District was greater dunng
September than in the preceding month, the gain was sorn::
1
what smaller than usually occurs at that season. Cons urn h
buying also dropped below that in the corresponding mont
last year after two consecutive months of sizable increas::
This decline is attributable in large part to the warm wea
S
er and the slowing down following the heavy purch a:
in the previous month. As compared with a year ago, e
largest recessions occurred in women's and misses' readyto-wear and accessories. The dollar volume of sales aver~
aged 12.8 per cent above that in August, but 7.4, per c~n
less than in September, 1932. The smaller than seasonal )D'
crease in sales was reflected also in the department sto~~
index figure, which declined from 81.3 per cent of the 19~
25 average in August to 640.8 per cent in September. DUl'l~g
the first nine months of 1933 distribution of merchand~~
averaged 4.7 per cent less Lhan in the same period of 19 I'
Reports indicate that consumer buying during the ear y
days of October was fairly good.
Merchants continued to add to their inventories dUdin~
September, which resulted in stocks of goods on han td
the close of the month being 15.8 per cent above those he
a month earlier, and 16.5 per cent greater than thosed
hand September 30, 1932. The rate of stock turnover U
ing the current year remained above that a year ago.
Collections on customers' accounts during Septernbh~
were greater than Lhose a month earlier or a year ago. T
Retail
Trade

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BUSINESS OF DEPARTMENT STORES
Total MIca (percentage):
September, 1933, compared wjth September, 1932 ........... . ...•....... . ....•. ..
September, 1933, compared WIth August, 1983 ........... . ................ ..
January 1 tn date compared with same period I.. t year ....... . .............. :: : : :
Credit saies (percentage):
September, 1938, compared with September, 1932 . ......... .. ...•....... . ... ... ..
September, 1933, compared with Auguat, 1933 ...... . . . ......................... .
January 1 tn date compared with .ame period I..t yenr ............... .. ......... .
Stocks held at end of month ~rccntnge):
September, 1933, compar with September, 1032 . . ................ . .. ......... . .
September, 1933, compared with August, 1988 ............. ...... ....... ... ..... .
Stock turnover (rate):
Rate of stock turnover in September, 1932 ...................................... .
Rate of stock turnover in September, 1933 .. .. .................... .... ........ . . .
Rate of stock turnover January 1 to September 30,1932 ...................... .. . .
Rate of .tock turnover January 1 tn September 30, 1933 .......... . .............. .
Ratio of September collections to accounta receivable outatanding September 1, 1983 . ... .
Indexes of department stnre sales:
Unadju.ted-Augua~933 ........................... ..... ... . .. ............. .

¥d~~~~~~933: .1.~3.3.'... :::::::::: :: :: : ::::::::::::::::::::::::::::::::

AdjUBted-8eptember, 1933 .. . .............. ..... . ....... ..... ..... ...... ... .. .
Indexes of department stere stocks:
UnadjUBtod-Augu.t, 1933 .. .... . . .. .... . . ....... ..... ...... ........ ......... .
Un~lusted-8eptember, 1933 .. .. ...... ....................................... .
Adju.ted-Auguat, 1938 ...... ... ... . ............................... . ......... .
AdlUBted-8eptember, 1933 ................. .. ........ .. ..... ......... . ... .... .
· Revised.

Dnllae
- 7.2
3.2
- 3.7

+

Fort Worth
- 5 .9
+ 4.5
- 4.5

Hou.tnn
- 6.9
+22. 4
+ .4

San Antenio
- 7.9
+21.3
- 9.8

Othel'll
- 9.2
+23.8
- 7.5

- 7.1
+ 1.0
- 3.2

-

6.2

- 5.8
+21.8
+ 4.0

- 4.4
+29.0
- 8.0

- 14 .5
+24 .3
- 8.5

+14.0
+19.2

2.5
+11.5

+ 8.0

+31.5

+20.5
+17.8

+18 . 1
+16 .1

.30

+ 7.0
- 2.1

+

.20
.19

Total Distriot
_ 7.4
+12 .8
_ 4.7
_ 7.5
+12.6
_ 3.7
+10. 5
+15.8

.28

1.98
2.13
31.4

1. 78
21. 7

.32
.21
1.07
2.10
34 . 1

62 . 2
68.1
86.4
64 .2

M.O
72 . 2
08 .8
74 .4

62 . 2
81.4
90 . 1
80.0

48 .5'
61.8
68 .S'
60 .6

81.3'
64 .8

46 .4
55 . 1
44 .0
50.6

71.4

04.1

54.4
57.0
58 .3
52 .2

38. 4'
46 .4
38.8'
42 .0

52 .4'
60 .6
51 .4'
66.0

.25

1.54

02 .8
04 .3

.39
.29
2.34
2.48
36.3

. 23
. 10
1.64
1. 74
27.5

1511111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111

.28

1.87
2.01
29.9
58.5'

68 .7

l
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MONTHLY BUSINESS REVIEW
ratio of collections to accounts outstanding on September 1
Was 29.9 per cent as against 28.8 per cent in August, and
27.7 per cent in September, 1932.
The business mortality rate m the
Eleventh Federal Reserve District during September reflected a sharp decline
and was at the lowest point reached since May, 1920. Total
Commercial
Failures

8

indebt~dness of defaulting firms also showed a sizable
reducLIOn from both the previous month and the same month
last year. According to the report compiled by Dun & Bradst~eet,Jn~.~ ere were .17 commercial failures in September,
~Ith habI.htI~s amountmg to $538,021, as compared with 53
~nsolvencles In August, owing $1,559,123, and 65 defaults
III September a year ago, with an indebtedness of $1,237,934.

0

AGRICUL TURE
Crop Con-

Weather conditions during September
ditions
were generally favorable for the growth,
maturity, and harvesLing of crops in most
i,ectio ns of Lhis district. Reflecting this condition, the Octoer 1 report of the Department of Agriculture showed increased production prospects for cotton, grain sorghums,
and several minor crops, and the indicated production of
other crops reflected liLtle or no variation . Timely rains
have fallen over many areas of the district and Lhe soil generally is in good condition for fall plowing and seeding
operations, although additional moisture would be beneficIal in some sections.
The cotton crop in most sections of the district reflected
~ f?rther substantial improvement during September. The
l~dlcated producLion for this district on October 1, as compIled by the Federal Reserve Board from the estimates, by
bt.ates, of Lhe Department of Agriculture, was 4.,864,000
ales, as compared with 4.,499,000 bales on September 1,
and an acLual production of 5,233,000 bales in 1932. As
~as the case in Aun-ust most of the improvement occurred
~p Texas and Okl~ho~a. The indicated production for
as rose from 3,815,000 bales on September 1 to 4,,0,000 bales on October 1. The latest report indicates a per
acre yield of 178 pounds, which is the largest since 1914,
and compares with 162 pounds last year, and a ten-year
a~erage of 136 pounds. The Department stated that fr~m
~f eSCl1t pros~ects all sections of Lhe StaLe sh~wed promIse
l' a larger Yleld per acre than a year ago, WIth the except~on of a few scattered communities. The indicated producIOn for Oklahoma was 1,175,000 bales on October 1, as
cOlllpared with 1,133,000 bales a month earlier. The fore~a8ted yield per acre was increased 7 pounds during the
rll?nth. The prospective production for New Mexico was
O~ed 8,000 bales, but that for Louisiana was reduced 33,.
to b.al es . Ginnings prior to October J. for states attached
lhls
Lou' . dislrict were as follows'. Arizona---.s,252 bales;
lah ISlana-305,629 bales; New Mexico-l0,434, bales; Ok011la-318,895 bales; and Texas-2,291,057 bales.
Gr aIn sorghums, which suffered severely from the drou th
.
du .
prIng Lhe summer months, showed a further rapid im'l':~VeInenl during September. The indicated production for
Withas on October 1 was .61,306,000 bushels, as compared
du .54.,964.,000 bushels on September 1, and an actual proPe c
C~lon of 63,008,000 bushels last year. The Oklahoma pros\Vh s Were increased to 16,74,2,000 bushels, which was someWh~~ larger than eithcr a month earlier or a year ago.
Sep~ e lhis crop in New Mexico showed no change during
sid e ber , the indicated producLion on October 1 was conPl'O~~ IX larger than the output in ] 932. The forecasted
iI1:ex ' Cllon of hay crops in Texas, Oklahoma, and New
con ~~o was increased during September, and offset by a
COl'~l erabl~ margin the slight decline in Louisiana. The
sOlll crop 111 Louisiana, Oklahoma, and Arizona showed
Cl'ea:e d~cline during September, but there was a slight inrelll . 111 the prospects for New Mexico. The Texas crop
alned unchanged.

It

h

The production of peanuts in Texas on October 1 was
placed at 96,460,000 pounds, as compared with 94,640,000
pounds on September 1, and an actual production of 99~OO,OOO pounds in 1932. While there was a slight declin~
HI the forecast for Louisiana, the indicated production on
October 1 was larger than a year ago·_ There was a considerable iJ?pro~ement in this crop for Oklahoma and the
prospectIve YIeld of 23.'800,000 pounds on October 1 was
somewh~t a~ove the estImate a month earlier, or the actual
producllo~ I~ 1932. Increased production of sweet potatoes was mdICated for Texas and Oklahoma but in ea h
state, production was slightly below the output last ye:r
The estimated yield of pecans in Texas on October 1 wa~
modera~ely larger than that a month earlier or the actual
productIOll last. year. On the ·other hand, the prospects in
Uklahoma declmed during September and present indi _
tions are for a yield of only 9,000,000 pounds as aga~:t
1.9,000,000 pounds last year. The condition of the Texas
nc~ cr~p ~n Octobe~ 1 was placed at 88 per cent of normal,
whICh l~ldICates a YIeld of 53 bushels per acre, or a total
productIon of. 7,473,000 bushels, as compared with an indicated p~oductIOn of 7,332,000 bushels a month earlier. The
?,roduct~on last year was pl~ced at 9,300,000 bushels. The
lexas CItrus frUlt crops, whICh were severely damaged b
y
the tropical storms during the late summer, are in a very
..
poor con dItIOn.
Range and livestock conditions over most
of the Eleventh Federal Reserve District
showed a further improvemen~ during the past month. Rains
have fallen over a large portIOn of the district stimulati
the growth of range vegetation and supplying stock wat~g
but there. aI:e still a few areas in Texas and New Mexic~
~here ram IS needed. T~e Edwards P~ateau region in parlICular has bee~ badly, m need of mOIsture although light
to m?derate rams, wlnc? fell over a considerable portion
of th~s ar~a about the ml~dle of October, partially relieved
the SItuatIOn. Range feed IS very short in the Edwards PI _
teau region and in porti?ns of the Texas Panhandle_ Whik
whe~~ pastur~ prospects .111 Northwest Texas are fairly good,
addItIOnal rams w~uld Improve the condition_ While cattle
have shown some lmprovement, they have not fully recovered from the effects of the drouthy condition during the
summer and the fall movement to market is expected to be
late.
Livestock

TIle condition of cattle ranges in Texas was placed by the
Department of Agricultur~ at 80 per cent of normal on
October 1, as compared wlth 77 per cent on September I
and 91 per cent on the same date a year ago. Due to th;
continued drouth, sheep and goat ranges declined from 71
per cent of normal 011 September 1 to 69 per cent on
October 1, and the latter figure was 27 points lower than a
year ago. Prospects for winter grazing are poor in this
area. The condition of cattle gained 3 points during Seplember, but the 81 per cent of normal condition on October
1 was 7 points lower than a year ago. There was a decline
of 1 point in the condition of sheep during September, and

MONTHL Y BUSINESS REVIEW

4

the October 1 condition figure was 12 points below that last
year. The condition of goats on October 1 was 84, per cent
of normal as compared with 81 per cent on September 1,
and 86 per cent on October 1, 1932. The fall shearing of
sheep and goats is about completed .and the market on wool
and mohair has continued firm to hIgher.
Movements
Receipts of hogs at the FOlt Worth mar·
and Prices
ket during September greatly exceeded
those in either the preceding month or
the same month last year. The heavy shipments were due
laraely to the purchases of the Government. The arrivals of
catfle, calves, and sheep were larger than in Septembe.r,
1932, but those of sheep and cattle were smaller than m
August.
The outstanding feature of the livestock market was the
rapid advance in hog prices. Afte; reaching a low level
in the early days of Septcmber, pnces turned upward and
showed a steady advance, reaching a high point of $5.35
durin« the first week of October, or a gain of $1.35 during
the p~riod. While there was a reacti?n ear~y in the fo~low­
ing week, the maTket was near the h~gh pomt at the mIddle
of the month. The cattle market dunng the past month was

slow and generally weak. Sheep and lamb prices ruled
generally steady during September and were a little firmer
during the first half of October.
FORT WORTH LIVESTOCK RECEIPTS
(Number)
Soptember
CaWe .......... .
Calves ....... . ..
Hogs ......... ..
Sheep ..... .. ... .

1083
34,746
24,968
84,207
31,300

Soptember Change over
yoar
1082
32,588
18,082
10,877
28,591

+ 2,163
+ 6,031
+67,330
+ 2,808

Change over
month

August
1983
38,040
22,131
44,979
38,487

- 3,204
+ 2,832
+39,228
- 7,002

~lIlIllIlIIlIlIlIIlIIlIlIlIIlIlIllIlIllIlIIllIll1ll1l1l1ll1l1l11l1l1l11l1l11l1l1l1lll1l1l1ll1l1l1l1lll1 1111111111111111111111111111111111111111111111

:JII IIIIIIIIIIIIIIIIII IIIIIIIIIIIIIIIIIIIIIIIIIIIIII I II111111111111111111111111111111111111111111111111111111 1111111111111111111111111 1111 1 111111111111111111111111~

I

I

COMPARATIVE TOP LIVESTOCK PRICES
(Dollars per hundredweight)

"

:;

September
Boef steers...... .. .. . .... .. . .. .... .. .. .. .
Stocker steers... .. . .. .. .. .... .. ... .. . ....
Buteher.:cows.. ...... ........... .........

September

August

1983
$5. 15

1082
$7.75
5.60
4.00

$5.65

.. ..

3.25

1083

ida
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~EmH::: I~ !ij

§
~
:;

g
:;

nlil"""""J

~IIII11I1I1I1I1II1I11I1I11I1I1I1II1I1I1IIJIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII\II1I1I 111111111111111111111111111111111111

FINANCE
The reports from member banks in
Condition of
selected cities for the four-week period
Member Banks
ending October 11, while showing a rein Selected
cession in investments, reflected a sub·
Cities
stantial increase in loans and deposits.
Investments in United States securities amounted to $llS,051,000 on October ll, which was $2,175,000 less than on
September 13, but $23,650,000 greater than on the same
date in 1932. Their investments in other stocks and bonds
increased $56,000 between September 13 and October 11,
but on the laller date were $5,075,000 less than a year ago.
While loans on securities declined $321,000 during the fourweek period, "all other" loans (largely commercial) reflected an expansion of $7,658,000. The loans of the latter
classification have shown a steady expansion since early in
August, and are now at the highest poi~t reached since the
first weeks of January. As compared With a year ago, total
loans on October 11 were $24,,1l6,000 smaller, and the
decline was about equally divided between loans on secUl'ities and "all other" loans. There was also a rapid expansion
in the net demand deposits of these banks, the total of
$228,890,000 on October II being $12,535,000 greater than
on September 13, and $9,708,000 above those on October
12, 1932. Theil' time deposits showed a very small decline
durin rr the four-week period, and on October II were $4,720,000 below those on the corresponding date last year.
Their reserves with the Federal Reserve Bank totaled $4,7,]95,000 on October 11, which represents a gain of $14,.
4.54,000 as compared with Scptember 13 and $20,4,31,000
~=====:====_1111111111111111111111111111111111111111l11l1l1ll1l1l1ll1l1ll11ll111l1l1l1l1 1I1I1I11II11I1I1I1I11I1I11II1111111111111111111111111111111111111111111111111111l1l1l 1l tJ:
CONDITION STATISTICS OF MEMBER BANKS IN SELECTED CITIES
(In thousands of dollars)
Oct. 11,

Oot. 12,

Sopt. 13,

1033
United Slates eccurities owned . ... ..... .. .. $ 115,051
52,158
All other stocla!. bonds, and sccurities owned.
59,368
Loans on sccurities . .............. .. ..... .
155,925
All other loans .......................... .
215,203
Total loans . ............................ .
228,890
Net demand depoeits .................... .
123,296
Time de)l<lllits ..... ... ..... . ............. .
47,195
ResCTve with Federal Reserve Bank ....... .

1932
$ 91,401
57,233
71,907
167,502
230,409
219,182
128,016
26,764

1933
117,226
52,102
59,689
148,267
207,956
216,355
123,315
32,741

150

40

None

Bills pnyable and rediscounts with Federal
Reserve Bank ......................... .

;:illlllllllllllllllllllllllllllllllllllllllllllllllllill111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111r.

as compared with October 12, 1932. Borrowings of the;~
banks from the Federal Reserve Bank amounted to $150,0
on October 11 as compared with $4,0,000 a year ago.
Operations of
There was a steady liquidation of meJni
the Federal Rebel' bank indebtedness at the Feder
serve Bank
Reserve Bank during the past mont.
Member bank borrowings amounted to
$2,258,000 on October 15, as compared with $4,,237,00~~rs
September 15, and $10,331,000 on October 15, 1932. h
reduction came coincident with the heavy movement of ~ e
collon crop and was made entirely by country banks.
serve city bank borrowings continued on a very small sca e.
There were only 68 banks indebted to the Federal Reserv~
Bank on October 15, as compared with 129 banks a roo nt
earlier, and 214 banks a year ago. Holdings of bills p,ur'
chased in the open market reflccted a slight increase dunng
the month. Investments in United States securities r~se ~f
$57,1.77,000 on October 15, which represents a gam 00
$4,,395,000 during the month, and an increase of $16,4.56l t.
as compared with the corresponding date last year. Re eC f
ing the movement of funds into this district as a rcs~lt ~f
the movement of the cotton crop, the reserve deposIts 15
member banks increased from $55,225,000 on September "'"
to $79,014.,000 on October 15, and the latter figure c01'"
to
pares with $4,3,691,000 on the same date in 1932. Due. 11
the scasonal demand for currency, the combined circulatJt~S
of Federal reserve notes and Federal reserve bank n O ' 11
rose to $49,91.5,000 on October 1.5, which represents a gal .

h

t

11111111

CONDITION OF THE FEDERAL RESERVE BANK
(In thousands of dollars)

o

~t'3~5,

TotaI eMh rr.serves....................... $ ., 244
"",
Diseounl8 for member banks.. . . . . . . . . . .. . .
¥1258
Other bills discounted...... .. ........ .. •..
None
Bills bought in the open mnrket .. , . . . . . . . . .
280
United States securities owned. . .. . . . . .. .. .
57,177
Other inveetmenl8. . . .. .. . . .. ... . . . . . . . . . .
5
'rotnl earning ll8Sel8. . . . . . . . . . . . . . . . . . . . . .
50,720
Member bank reserve depoeits.............
70,014
Federal reservo notes in aetunl eireulatlon. . .
33,075
Federal reserve bank notcs in notunl eireulation........... .... ....... .. .... .. ...
15,040

0

15

~b

'

$ 41,952
0 31

1 ,3
None

865
40,721
51,92~
43,691
37,841

None

_
Sopt. 15,

J088
$ 54,445
4,287

None

177
782
52, 5
57,201
55,225
31,202
10,428

~11I11I1l1I1I11I1I1I1I11l1I11I1I111I1I1I1II1I111I1II1II111II11II1I1I111I1II111I1I11I1I1I1I11I1II11111111111111111111111111111111111111111111111111111

6

MONTHLY BUSINESS REVIEW

INDUSTRY
Reflecting the heavy movement of this
Cottonseed
year's cotton crop, the operations of
Products
cottonseed oil mills in Texas again evidenced a large seasonal increase over the preceding month.
The comparisons with the corresponding month of 1932,
however, showed declines in the crushings of seed, and the
production of oil, cake and meal, and hulls. During the first
two months of the 1933-34, season the receipts and crushings of seed and the output of all products were greater
than in the same period of the previous season.
Activities of all cottonseed oil mills in the United States
during the past month also reflected the usual seasonal increase, but were under those a year ago with the exception
of the output of linters. Operations during the season continued above those last year. Stocks of seed held on September 30 at both Texas and United States mills were considerably greater than a month earlier, but at the latter
mills were less than a year ago. Supplies of all products
were seasonally greater than those held on August 31, but at
Texas mills the stocks of oil, hulls, and linters were below
those on hand September 30, 1932.
EJ,IIII III 11111 1111111111 III II 111111 11111 11111 11111111 1111111111111 11111 11111111 II III II III III 1111111111 III II III 11111 1111 1111 11111111 11111 III 11111 1111111111111 1II1II1g:

=_

;= _~i ~ATffiTlCS ON C=O;~~;;;;N;!~:;'~: I

Cottonseed received at mills
(tons) . .............. . .....
Cottonseed crusbed (tons).. .•.
Cottonseed on hand Sept. 30
(tOilS) ... . .. . , . . . . . . . . . . . . •
;; Crude oil produced (pounds)...
Cake and meal produced (tons)
Hulls produced (tons).. .. .....
Linters produced (running
bales) ...... .. .... . ....... .
Stocks on hand Sept. 80:
Crude oil (pounds) .......... .
Cake and meal (tons) ........•
Hulls (tons). .............. ..
Linters (running bales) ....... .

465,344
303,000
260,648
80,560.380
141,573
86,090

333,023
280,686

1,124,005
755,813

1,090,018
723,020

210,505
580,130
667,022
88,400,481 230,332,144 218,800,185
135,592
380,488
327,115
84,204
209,822
205,881

45,067

a8,408

128,326

26,033,055
68,323
76,238
68,671

01,332,769
258,257
146,444
114,111

Cotton
Movements

The usual heavy movement of cotton at
this season was evidenced during the past
month at the ports of Houston and Galveston. Exports showed a marked increase over the previous
month, and exceeded those in the corresponding month last
season by a wide margin. Heavy shipments of the new cot·
ton crop to concentration points were reflected by the large
volume of receipts at both ports; they exceeded those in
both the previous month and the same month last year by a
large amount. Stocks of cotton at both ports on September
30 were greater than a month earlier or a year ago.
Foreign exports of American cotton from all United
States ports were also in large volume during September.
Shipments exceeded those in August by 63.8 per cent, which
is much larger than seasonal, and were 18.5 per cent greater
than in September, 1932. Exports during the month aggregated 869,244 bales, as compared with 530,627 bales in
August, and 733,665 bales in September a year ago. During
the first two months of the fiscal cotton year exports were
substantiall y greater than in the corresponding period of
the previous year.
WIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII111I1111111111111111111111I111111111111111111111111111111111111111111111111111111111111111111111111111111111=

COTTON MOVEMENTS THROUGH THE PORT OF GALVESTON
(Bal .. )

108,608

25,222,141
81,234
64,462
85,215

a year ago, and the production of cloth, while slightly
smaller than in September, 1932, was considerably greater
than that in the previous month. Orders for finished products
on hand on September 30 were less than those held a month
earlier or a year ago. Stocks of manufactured goods held
on the last day of the month were greater than on August
31, but much less than on September 30, 1932.

64,158,654
201,023
202,521
227,648

Septembcr
10S3
Receipts..... . . . . . .. . . . . . . . . .
302,021
Exports. ... .. .. . . ... . ...... .
HO,H7
Stocks, Septomber 30. . . . . . . . .

September
1032

180,~23

83,724

=i11111 11111 111111111111111111111 11111111 1111111111111111IIIIII1111111111111111111111111111111111111111111111111lllllllllllllllllIllllllllllllllllllllllllllllllllllr.

The operations of textile mills in the
United States during the past month continued to show a sharp falling-off in the
consumption of coLton, but despite this contrary to seasonal
recession activities remained on a higher level than a year
ago. There were 499,4,86 bales of cotton consumed during
the month, as compared with 588,570 bales in August, and
492,742 bales in September last year. During the two months
of the current season consumption averaged 21.3 per cent
greater than in the same period of the previous season.
Stocks of cotton held by consuming establishments on September 30 were in practically the same volume as those a
month earlier, but remained above those a year ago.
The consumption of cotton at reporting Texas textile
mills during September was above that a month earlier and
Textile
Milling

,

iillill 11111 11111 1111111111111111 11111111 II III 11111111 1111111111111111 11111 11111 11111111111

COTIDN C~;'~~I::: ::~&f!~~
Cotton-growing states:
Cotton oonsumed... .. ......
On hand September 30 inConsuming establishments.
Publio storage and oompresses ............... .
United States:
Cotton consumed... . . . . ....
On band September 30 inConsuming establishments.
Public storage and compresses ............... .

401,373

747,761
833,122

7,010,659
492,742

865,716
800,269

490,486

400,011

1,088,056

897,230
1,084,549

7,374,556

7,097,707

.,11111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111I1I11I1I11I1I11I11I1I1I11I1I1II11I1II1I1I1I1II1I11I11I1I1I11I11I1I11I1r.

§
§
;;
_=;

;;

1I11111111111111111111111111111111111111111111111111111111111111111111111~

For Grent Britain ............... _.................. ..
For France ......................................... .
For other foreign ports ............................... .
For coastwise ports ...............•...................
In compresses and depots ..................•..•........

Sept.30,
1033
4,000
3,500
26,000
2,000
653,379

Sept. 30,
1032
3,000
2,500
18,000
500
617,482

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

588,870

541,482

:11111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111

COTTON MOVEMENTS THROUGH THE PORT OF HOUSTON
(Bales)

Rccelpts ...... . ......... .. .. .
Exports ..... . ..... . ....... ..
Stocks, Septcmber 30 ........ .

September
1033
480,302
316,021

Scptember
1082
386,083
210,847

AU~U8t 1 to Soptomber 30
ThIS season Last season
652,452
470,214
600,715
300,762
1,308,887
1,151,023

;;1111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111

7,568,904

1,160,457

=

:11111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111 IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII~

=.11111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111 III II III 11111 I1111 III II III II III II III III II III 11111 11111 11111 Ill!:

1=_

Au~ust 1 to Septomber 30
Thlssenson Last season
352,404
222,553
108,522
143,250
~88,870
641,482

~

;;

SPOT COTTON PRICE8-(Mlddling Basls)
(Cents per pound)

New york .............................. .
New Orleans ............................ .
Dallas ................................. .
Houston ................................ .
Galveston •....................•.........

September, 10sa
IDgb
Low
10.4~
8.85
10.26
8.61
O. 7~
8.16
10 . 1~
8.50
10.16
8.40

Oct. 14,
1038
0.40
0 .00
8 .65
8.05
8.05

iiilllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllil111111111111111111111111111111111111111111111111111111

7

MONTHLY BUSINESS REVIEW

Daily average yield in Texas amounted to 1,082,300
barrels, which is 128,600 barrels less than in August, but
170,300 barrels larger than in September a year ago. Decreases from the previous month were general over the
State, ranging from 3,100 barrels in North Texas to 80,000
barrels in East Texas. There was an increase of 1,350 barrels in the daily output reported by New Mexico, while
North Louisiana showed a 250·barrel decline.

SEASON'S RECEIPTS, EXPORTS, AND STOCKS OF COTTON A't ALL
UNITED STATES PORTS-(Bales)
Au~ust 1 to September 31
This season Last Beason

Receipts . ...................................... ,. . .. .
Exports: United Kingdom. ... ... .. ......... . . ...... ..
France........................ .... .........
Italy.......... ..... ... ............... .... ..
Germany.. . . .. . . . .. . .. . . . . .. . . . . .. .. . .. . .. .
Other Europe. . .. . . .. .. . . . . .. .. . .. ....... . . .
Jaran........... .... .......................
AI otber eountries.... .......................

1,806,070
246,507
105,718
120,068
202,024
182,606
344,056
72,172

1,484,120
154,172
187,480
110,804
357,847
148,973
161,871
04,612

~ §t~:~~e~'r -B~[1:d 'Stai~ iioria: sej,t.i~b~r· 30: '...'.'.'.'.'.'.'. ~:~~~:m

~:m:n~

=_

~======1I1I1I1I1II1II1II1II1II1I1I1II1I1II1II11I1II1II1II1II1II1II1II11I1I11II11I1I1I1II1II11I1II1II1II1II1I11III 111111111 111111111 tlllllllllllli II 1111 IIIIIIIIIIIIIIIIIU::

~

~IIIIIII1I1II1II1II1I1I1UlllllllllllllllllllllllllllllllllltlllllllllllllllllllllllllllllUllIII II III III 11111111 11111 III 11111111111111111 III 111 II III III III III III Iffi

The output of crude oil during September in the Eleventh Federal Reserve
District aggregated 34,501,500 barrels. This figure compares
with 39,604,,050 barrels in the previous month, and 29,191,500 barrels in the same month last year. Daily average production declined from 1,277,550 barrels in August to 1,150,050 barrels in September. Drilling activity, on the other
hand, increased appreciably, as was evidenced by the completion of 633 wells in the latter month as against 459 in
the former month. The initial output of new producing wells
in September amounted to 2,192,204 barrels, as compared
with 1,4,24,,4,93 barrels in the preceding month.
OIL PRODUCTION-(llarrels)

I~~~r=iT~:

t~i~"~~:ia ~~·t"~~:ii I

East Central TeIns........... 17,301,000
South Texns ... .. .......... ·· 1,440,000
§ Texns Coastnl.... .... .... .... 5,940,000

578,700
48,000
198,000

~

Total Texns........... 32,409,000
New Mexico . . .... . ...... •.. · 1,257,000
North Louisiana..... .. . . . . . . .
775,500

1,082,300
41,900
25,850

§

Total District. .. ... . . .. 34,501,500

1,150,050

§
§

;;

§
§

-3,058,700
- 158,050
- 754,450

-

80,000
3,550
17,950

-

- 5,008,900
50
38,600

- 128,600
+ 1,350
250

- 5,102,550

-127,500

~llIllIlIlIIlUllllllllllllllllrllllllllllllllllllllllllllllllltllllllllllllllllllllllllllllllllllllllliIII III III III 11111 III III III 11111111 11111111111111 III IIlllll ffi

Completions

Produoere

Gas
Wells

North TexBB .............. ,
Central Woot Texas ....... . .
Enst Central Texns .....•..•
Seuth TexBB .... .. ........ .
Texns Constal.. ....... .... .

116
41
271
81
94

68
16
205
40
08

2
2

Total Texns ...•.....
New Mexico ..... .. ....... .
North Louisiana .......... . .

603
7
23

457
1

10

5

September totnls, distriet.. . .
August totals, district... . .. .

Petroleum

~=_II IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII IIIIII IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII~=~_'

SEPTEMBER DRILLING RESULTS

033
459

403
306

Failurca

Initial
Produotion

46
23
6
38
23

6,227
1,673
2,084,063
15,620
85,180

'4

136
6
14

2,191,769
50
385

14
20

156
133

2,192,204
1,424,493

3
3

~lIIl11l1l11l11l1l1l1l11l1l1l1l1l1l1l1l11tlllllllllllllllllllllllllllllllllllllllllllllllllllllllllll1ll1l1l1l11l11l11l1I 1111111 1111111111 III 111111111 111111 III IIIIE
¥1II 11 III III III III 11111 111111 III III III 111111 III 111111111 11111 1
111111 111111 111111 III 111111111 1111111111 111111 III II 11111 III 1111 III 1111111111111111 III 111111 III IIIl11lg

!~.~("I..~.~R~R~ffi::

:: North Texas and orth Louisiana (40 gr. and above).....
::
·Price paid Cor oil, 40 gr. and above.

~\~.' ::~!:'
1.03

1.12

I
;:

::

~IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII11111I1111111111111111111111111111111111111111111111111IIIIIIII IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIi
(Oil Btalisties complied by The Oil Weekly, Houston, Texas)

Principal cities in the Eleventh Federal
Reserve District reported further substantial declines in the valuation of building permits issued
during September. Total valuation amounted to $651,385,
which compares with $972,107 in the previous month, and
$808,014, in September, 1932. While the decrease from
August was rather general, five reporting centers showed
appreciable gains as compared with the same month last
year.
Building

~ IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII I I 1II11111111111111 1111 11111111111111111111111111111111111111111111111111111 1111 111111111111111111111111 1 11111111111111111111111111111111111111111111111111 1111111 1111 I111111111111111111111111111 1111111 11111111111111111111111111111111111111111111111111111111111111111111111111IIIIIIILE

§

BmLDING PERMITS

~
~

September, 1933

=

· No.

;;

§
;;
;;

~

I

I
;;
;;
;;

Amnrillo .......
Austin . ....... .
Boallmont ... . . .
Corr,us Christi. .
Dalas .........
EI Paso ........
Fort \Vortb .....
Galveston ......
ROUBtOIl . .......
Port Artbur . ...
San Antonio ....
Sbreveport .....
Waco ..........
Wiohita Falls .. .
Totnl. ...

Valuation

September, 1982
No.

-- ---- -26
4,572
12 $
05
80
84
208
30
79
115
194
75
121
104
17
14

01,359
19,822
10,501
112,554
3,585
70,921
20,558
209,078
17,466
47,925
84,302
23,907
2,655

100
92
29
243
54
157
184
190
20
184
132
28
19

Percentnge cbange
valuation over
year
Vnluation
$

20,702
102,358
15,244
11,120
191,231
34,135
84,628
27,107
174,737
4,792
02,054
32,172
30,407
11,323

+
+
-

77.9
40.1
30.0
48.8
41.1
80 .5
9.1
- 24.2
+ 19.7
+204.5
- 22.8
+ 0.8
- 34.2
- 76.0

-

Nine Months

August, 1933
No.

Peroentage ebange
valuation over
Valuation
month

19 S 22,714
88
95,145
123
12,114
28
18,360
373
180,684
48
22,295
95
105,351
04
29,636
261
235,055
90
15,821
125
92,880
155
97,576
22
32,923
31
10,958

- 79 .9
-36.5
+63.0
- 0.8
-37.7
-88. 9
-27.0
-30.0
- 11 .3
+10.4
-48.4
-64.8
- 27.2
-75.8

-- ---- - - ---- ---- - - ---- ---1,552 S 972,107
- 19.4
-33.0
1,214 $ 051,385 1,464 S 808,014

No.

Percentage change
valuation over
period

1982

1983

Valuation

No.

Valuation

150 S 137,705
1,105,851
777
730
143,001
220
132,770
3,003
1,569,550
825
144,514
760
2,503,401
828
312,455
1,612
2,529,800
425
78,725
1,104
793,275
953
357,013
213
253,209
250
67,476

201 S 270,449
4,980,421
821
258,265
700
127,010
298
2,480
2,004,648
287,707
303
1,171
1,147,803
1,207
440,205
1,850
2,316,826
77,004
330
1,383,257
1,025
351,108
1,096
279
200,358
145
486,220

11,445 $10,219,780

12,701 S 14,487,341

- 49.1
- 76.0
- 44.3
+ 4.5
- 24.0
- 49.8
+118.1
- 20.0
+ 9.2
+ 2.2
- 42.7
+ 1.7
- 14.0
- 80.1

---29 .5

1..1111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111,.

An increase of 77.1 per cent was shown
in the production of Portland cement at
Texas mills during September, following two months in
Which substantial declines were registered. The output,
,vhich amounted to 271,000 barrels, was still 36.5 per cent
less than in September, 1932. Shipments during September
totaled 183,000 barrels, as compared with 198,000 barrels
in the previous month, and 315,000 barrels in the same
1110nth last year. Stocks on hand at these mills on September
30 aggregated 807,000 barrels, being 12.2 per cent larger
Cement

than on August 31, and 12.6 per cent above the level of a
year ago.
PRODUCTION, SHIPMENTS, AND STOCKS OF PORTLAND CEMENT
(In tbousands oC barrels)

Sept.,
Produotion at Texns mill •.....
Shipments Crom Texas mills ....
Stocks at end oC month nt Texns
mills ......... ... .. ....... .

Percentage
ebnnge Crom
Sept., Aug.,

1933
271
188

1932
1983
-36.6 +77.1
-41.9 - 7.6

807

+12.6 +12.2

January 1 Percentage
through obange Crom
Sept. 30
yenr
2,577
2,440

-10.9
-15.7

;;11111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111 11111111111111111 1111111111111111111111111 1II1II1II1II1II1I1I11I1r.

8

MONTHLY BUSINESS REVIEW

SUMMARY OF NATIONAL BUSINESS CONDITIONS
(Cotm>iled by the Federal Reserve Board, October 24, 1988)

Activity declined, as it had in August, following the rapid
expansion of the spring and early summer. Factory employment and payrolls increased fmther between the middle of
August and the middle of September.
PRODUCTION

Industrial production, as measured by the Board's seasonally adjusted index, declined from 91 per cent of the
1923-1925 average in August to 84, per cent in September.
Activity decreased in most lines of industry, and particularly in those in which output had increased rapidly in
earlier months. Production of steel, lumber, cement, bituminous coal, and petroleum declined considerably and automobile output was reduced. Deliveries of silk to mills were
small in September, while consumption of cotton and wool,
although reduced during the month, was nevertheless larger
than in other recent years at this season. Meat packing plants
were more active, partly because of processing of pigs under the Government's emergency marketing program; and
output of flour was larger than the exceptionally small
volume produced in August. In the first half of October
further declines in output of automobiles, bituminous coal,
and petroleum were reported. Steel mill activity, after increasing in the first half of October, receded in the third
week.
EMPLOYMENT

Employment of factory workers increased between the
middle of August and the middle of September, and total
earnings were larger, partly as a result of further advances
in wage rates and the expansion of operations in seasonally active industries such as canning. Employment in public utilities, railroads, stores, and mines also increased and
it is estimated that about 200,000 industrial wage earners
found work during the period. Preliminary reports for the
first half of October indicate some decrease in employment
and a continuation of about the same volume of earnings
in basic manufacturing industries.
CONSTRUCTION

Construction contracts awarded increased in September to
the highest level for the year according to reports by the
F. W. Dodge Corporation, the largest volume of new awards
being for public works and for other nonresidential projects.
In the third quarter of the year value of construction contracts was 25 per cent of the 1923-1925 average.
DISTRIBUTION

Sales at department stores in leading cities increased less
than seasonally in September, following an unusually large
increase in sales in August. Trade reports indicate that sales
volume was affected by unseasonably warm weather and by

price advances. Sales of chain variety stores continued in
somewhat larger volume than in 1932. On the railroads,
average daily freight sh i p men ts during September increased by somewhat less than is usual in the early autumn,
but were in larger volume than at any time since the latter
part of 1931. In the first two weeks of October car·loadings
were at a higher level than in late September.
PRICES
During September and the first two weeks of October
the general average of wholesale prices in the United States
was relatively stable at about 71 per cent of the 1926 average, reflecting, however, widely divergent movements in
prices of individual commodities. Prices of raw materials
traded on organized exchanges declined sharply during the
first two weeks of October and then recovered somewhat.
There have been further advances during recent weeks in
prices of fuels, iron and steel, building materials, and house
furnishings, while prices of cotton textiles and leather have
declined. Retail prices of food showed little change in September, while prices of clothing continued to advance.
FOREIGN EXCHANGE
The value of the dollar in the foreign exchange market
Huctuated around 65 per cent of its gold parity during the
latter part of September and the first half of October, advanced to 71 per cent in the third week, and declined to 70
per cent on October 23.
BANK CREDIT
Excess reserves of member banks increased by $100,000,
000 between September 13 and October 20 in consequence
of the purchase by the Federal reserve banks of $170,000,000
of United States Government securities during the period,
offset in part by a further decline in discounts and a seasonal increase in the demand for currency. While these
purchases of United States Government securities were made
chiefly in New York City, member bank funds arising froJTl
these purchases were transferred to other parts of the country through expenditures in outlying areas by Federal
agencies, and through payment for crops marketed. At reporting member banks in leading cities there was little
change in loans and investments during this period; a decline in the volume of loans on securities was offset by
growth in all other loans. Money rates in the open market
continued at low levels. On October 20 the Federal Reserve
Bank of N,ew York reduced its buying rate on bills froJTl a
range from 1 to 1~ per cent for different maturities to 8
range from Y2 to 1 per cent. The rediscount rate at NeW
York was reduced from 2% per cent to 2 per cent, effective
October 20, and on October 21 the Federal Reserve Banks of
Cleveland and Chicago reduced their discount rates froID 3
per cent to 2% per cent.

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