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M O NTHLY BUSINESS REVIEW OF THE FEDERAL RESERVE BANK OF DALLAS CHAS. C. HALL-W. J. EVANS Assistant Federal Reserve Agents C. C. WALSH Chairman and Federal Reserve Agent (Compiled October 15, 1934) Dallas, Texas, November 1, 1934 Volume 19, No.9 This COpy is r eleased for publiclltion in afternoon paper &- N ov. 1 DISTRICT SUMMARY THE SITUATION A'l' A GLANCE Eleventh Federal Reserve District Cbange from August Soptember 1034 Bank dobits to individual accounts (at 17 oities) .. ....... . . . . . . . .... . ............. . Department store sales .. .... . . .. ..... . ... . . . n eservo bank loans to member banks at ond of month .. . ..... . . .. .... . . . .. ... . . . . ... . n esorve bank ratio at end of month ... . ..... . Building jlC!1Pit valuation at larger contors . . . . Commero181 failures (number) ... .. . . ... . .... . C~mmeroial failures (liabilities) ......... . ... . 011 production (barrols) ....... . . . . .. . ... . . . . S572,122,000 + 3 .0% + 41.4% + 72 .8% points 3. 4 - 57,802 63.2% $ 1,178,867 - $ + 18 .2% 17 173,040 32,484,000 12 .0% No Chango - 1.0% A strong demand for merchandise in both wholes~le ~nd retail channels of distribution was a factor of major Importance in the business and industrial situation in the Eleventh Federal Reserve District during the past month. Sales of department stores in principal cities reflected a gain of 4,1 per cent over the previous month, and were 29 per cent in excess of those in the corresponding month last year. The August to September increase was greater than seasonal and this bank's index of department store sales, adjusted for seasonal variation, rose 4 points to the highest l~vel registered during the current recovery. Whole~ale dIstribution showed a seasonal expansion over the prevIOUS lUonth and was substantially larger than in the same month last year. Collections evidenced a material gain. Charges ~o depositors' accounts at banks in larger cities reflected an Increase of 4 per cent as compared with August, and were 15 per cent above those in September last year. While moisture conditions were greatly improved by rains over many sections of the Eleventh District during the past month, there are only a few favored localities where the drouth has been effectively broken, and additional moisture would be beneficial. According to the October 1 repor t of the Department of Agriculture, prospective production of major crops in this district showed little change during the month, but some minor crops reflected an improvement. Livestock and their ranges continue in very poor condition except in favored localities. There are many areas where range feed is practically exhausted, roughage is scarce and the moisture supply is insufficient to mature feed b~fore winter. The daily average of combined net demand and time deposits of member banks again reflected a substantial expansion as compared with the previous month, and the margin of increase over the corresponding month of 1933 showed a further widening. Loans and investments of member banks in selected cities evidenced a noticeable gain between September 12 and October 10. The demand for reserve bunk credit continued light, and loans to member banks at the middle of October amounted to only $57,000. The demand for currency, however, reflected a seasonal expansion the actual circulation of Federal reserve notes on Octobe; 15 being $54,559,000, as compared with $48 ,766,000 on September 15, and $33,975,000 on October 15, 1933. Construction activity was fairly well sustained during the past month. The valuation of building permits issued at princ~pal cities, while 13 per cent below that in August, showed a gain of 81 per cent over a year earlier, and with the exception of May and August was the highest of the current year. BUSINESS f17hol esa l e Trade A growth in the distribution of merchandise at wholesale which was greater than the usual season'al amount, occurred in this district during September. The broad consumer de~and for practically all classes of merchandise has necessIta~ed f:equent replacement orders at wholesale, and all reportmg hnes of trade participated in the improvement. Anoth?r feature of the trade situation indicating the betterment 111 ~Ilderlying conditions was the large increase in collections In some lines. The demand for dry goods was well sustained in Septem- bel'. Sales were practically the same as in August, whereas a moderate decline usually occurs, and they were 28.0 per cent larger than in the corresponding month of 1933. While the warm weather during October has retarded buying to some extent, business generally has held up fairly well. There was a gain of 33.9 per cent in collections in September as compared with August. The distribution of hardware at wholesale evidenced a larger than seasonal expansion between August and September. Sales of reporting firms in the latter month exceeded those of the previous month by 14,.1 per cent and were 7.3 This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) 2 MONTHLY BUSINESS REVIEW per cent above those in the same month last year. The gains were generally well distributed. While sales in the third quarter were only 5.7 per cent larger than in the same period a year ago, it should be recalled that there has been a rapid expansion in the demand for hardware since the middle of 1933. Collections in September were slightly larger than in August. The September sales of wholesale grocery firms reflected a further increase of 6.8 per cent as compared with the previous month, and were 19.9 per cent in excess of those in the same month last year. The improvement appeared to be fairly general over the district and late reports are to the effect that business early in October was holding up well. Collections were 22.8 per cent above those in August. A slightly larger than seasonal increase in the demand for drugs at wholesale occurred in September. The business of reporting firms was 6.3 per cent larger than in August and was 1.7 per cent above that in the same month of 1933. Sales in the third quarter averaged 7.4 per cent above those in the same period a year ago. There was a noticeable pickup in collections during the month. Retail Trade The demand for farm implements at wholesale reflected a sharp increase between August and September. Sales of reporting firms were 108.2 per cent above those in August, which was much larger than seasonal, and exceeded those in September, 1933, by 87.9 per cent. The month's business was the largest reported in more than three years. Sales during the third quarter of 1934 averaged 59.0 per cent larger than those in the corresponding period of 1933. Collections in September greatly exceeded those in either the previous month or the same month last year. CONDITION OF WHOLESALE TRADE DURING SEPTEMBER. 1934 Percentage of increase or decrease in- Grocerics .. ....... Drygoods .. .. .... Farm impiemcnts.. Hardware ..... . .. Drugs .. .. .. . ..... Net Sales Not Saies Stocks Ratio of coilecSept .• 1934 July 1 to date Sept., 1934 tions during Sept. compared with compared with compared with to accounts and Sept., Aug., snme period Sept., Aug., notes outstanding 1933 1934 last year 1933 1934 on August 31 +19.9 + 6.8 +19.3 + 7.7 +10 .7 79 .5 +28.0 .2 +14 .3 + 7.1 -11 .2 32 .9 +87.9 + 108.2 +59 .0 +18 .9 + 1.6 10.6 + 7.3 + 14 . 1 + 5.7 - 4 .6 - 1.4 43 . 8 + 1.7 + 6.3 + 7.4 +10.9 - . 4 45.7 The consumer demand for merchandise as reAected by department store sales in larger centers, reflected a further growth of greater than seasonal proportion. Sales of reporting de· partment stores during September exceeded those of August by 4.1.4, per cent, and were 29.1 per cent larger than ~hose of the corresponding month of 1933. The volume of buslO ess during the first nine months of the current year averaged 25.1 per cent above that in the same period last year. T~e adjusted index of department store sales compiled by thIS bank rose to 85.9 per cent of the 1923·25 average in September, as compared with 81.8 per cent in August, and 64.8 per cent in September, 1933. Due to the unusually warm weathe.r during the first half of October, reports indicate that bus)ness has slowed down to some extent. Inventories of merchandise on hand at the close of Sep· tember were 6.4 per cent larger than a month earlier, and 1.9 per cent above those a year ago. The rate of stock turnover was 2.21 in the first nine months of the current year, as compared with 2.03 during the same period of the previous year. Collections showed an improvement in September. The ratio of September collections to open accounts due and ou~ standing on September 1 was 35.3 per cent, as compare with 34.4 per cent in August, and 29.9 per cent in September last year. BUSINESS OF DEPARTMENT STORES Total sales (percontage): September, 1934, compared with September, 1933 . . . .......... •• ....•.... • ... . . . . September, 1934, compared with August, 1934 .. .. ... . .... . .. ..... . ..... . . . . . .. .. January 1 to date compared with same period last year .. ......•. . ..•. . ..••.. . .•.. Credit sales (percentage): September, 1934, compared with September, 1933 .......... . ... . .. .. ..... . ... . ... September, 1934, compared with August, 1931 ... . ... ... . . ..... ... ........ .. . .. .. January 1 to date comparod with same period last year . . . .. . ........... . . . .... . .. Stooks on band at end of month (percentage): September, 1934, compared with September, 1933 ..... . . . . .. . .. .. .. . ....... . ..... September, 1934, compared witb August, 1934 . ... . . . .. .. .............. .. . .. . .... Stock turnover (rate): Rate of stock turnover in September, 1933 . .. .. . . ..... . ............ .... .. ... .. .. . Rate of stook turnover in September, 1934 .... ..... . . .. . . .. ..... .. . . : ... .. ..... .. Rato of stock turnover January 1 to September 30, 1933 . . . . . ......... .. ........ . . Rate of stock turnover January 1 to September 30, 1934 . . . . . . .. .. . ....... .. ... .. . Ratio of September collections to open accounts receivable outstanding September I, 1034 Ratio of Sept. collections to installment accounts receivable outstanding Sept. I, 1034 . . . . Indexes of department store salcs: Unadjusted-Au 8U 1934 .... ... ... . . . ... .. ........... . . . .......... . ... ... . .. UnadJusted-Septem er, 1934 ...... .. .. . . . . .•... .. . ...•....• . ....... . .•.. .. •• . S\ ~~~::~=t:t~:b!~~i934·. '. : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : Indexes of department store stocks: Unadjusted-August, 1934 .. .. . .... . .. . .. . ...................... ... . . . ...... .. UnadJusted-September, 1934 ... . . , .....•....•....•.... • .. .. . .. . ..• .. . .•. . . . .. ~~i~~=~"tt:b!~,3ig34·.::: : :: : ::::: :: : :: :::::: : : : : : :: : ::::::::::::::::::: : The business mortality rate in the Eleventh Federal Reserve District continued at a low level in September. According to the compilation of Dun & Bradstreet, Incorporated, there were 17 failures during the month, which is the Commercial Failures Dallas +35.0 +37.8 +30.8 Fort Worth +22 .1 +35 .5 +)0.1 Houston +31.0 +51.0 +27 .3 San Antonio +19.4 +33 .3 +23.1 Others +27.9 +49 .3 +21.2 Total Distriot +29.1 +41.4 +25 . 1 +31.0 +34.0 +29 .7 +23.8 +41.9 +10.5 +31.7 +51.0 +29.8 +15.2 +35 .2 +24.0 +20.9 +49.5 + 19.5 +21.3 +40.6 +25.0 :): 2.2 5.1 - 2.8 + 6.3 +17.0 +12.8 - 2.4 + 4.0 0.0 + 6.0 + 0.4 . 21 .24 2.09 2.15 36.8 .29 .34 2.55 2.69 30 .2 .20 .24 1. 74 1.82 32 .0 21.8 +l.O .28 .28 2.03 2.21 35.3 13.0 .25 .31 2.15 2.45 .3 4.1 14 .0 .19 .24 1. 72 1.80 35.5 8.6 62 .0 95 .2 86.1 89.8 62.7 91. 7 88 .3 94.5 62.4 106.0 90.4 106.0 51.8 75 .7 72.3 74 . 2 58.9 01.1 81.8 85.9 51.1 05.0 52.0 51.0 65.3 69.4 64.0 02.5 43.0 49.2 42.7 44 .3 40.3 41.4 40 . 7 38.0 55.6 58.7 64.5 53.4 same number as reported in the previous month and in ~he corresponding month last year. The liabilities of de£ault1n~ firms amounted to $173,049 in September, as compare t with $146,426 in August, and $538,021 in September as year. MONTHLY BUSINESS REVIEW 3 AGRICUL TURE Moderate to heavy rainfall which fell over many sections of the district during the past month effectively broke the drouth in a few favored localities and benefited other areas. Due to the absence of subsoil moisture, however, the rains in many areas were insufficient to break the drout.h, and additional moisture is needed in practically all sectIOns of the district. While the rains came too late to be of much ~enefit to major crops, some of the minor. crops .reflected Improvement. Some sections received sufficIent mOIsture to permit fall plowing and seeding operations. Crop Conditions The indicated production of cotton in the Eleventh Federal Reserve District, as derived by the Federal Reserve Board from the October 1 estimates, by states, of the Depa.rtment of Agriculture, was 2,865,000 bales, as compared ~Ith 2,878000 bales a month earlier and an actual productIOn of 5,114,000 bales in 1933. Whil~ the estimate for Louisiana Was increased from 41 36,000 bales on September 1 to 4~0,0~0 bales on October 1 it was more than offset by dechnes m Texas and Oklaho~a. There were no changes in the estimates for Arizona and New Mexico. The indicated production in Texas was reported by the Department as 2,34,5,000 bales on October 1, which was 38,000 bales lower than the September 1 estimate, and compares with 4,,4,28,000 bales produced last year. It was stated that the, !owe~ forecast for Texas was caused principally by condItIOns m Northwest Texas, where the crop is turning out shorter than e:cpected. Prospects in Oklahoma were reduced further. m September, the indicated production on October 1 bemg only 370,000 bales. The per acre yield in Oklahoma was placed at 70 pounds, as compared with 80 pounds on ~ep ~cmber 1, and an actual yield of 208 pounds. last year. PlC~ Ing and ginning have proceeded at a rapId r~te .and ~le n~aring completion in many sections of the dIst.rIct.. G~n nIngs prior to October 1 in states attached to thIS dIstrIct Were reported by the Census Bureau as follows: !~xas1,719,000 bales; Oklahoma-I30,000 bales; LOUlsI~na34,0,000 bales; Arizona-26,000 bales; and New MexIco30,000 bales. The prospects for feed crops in states attached. to t.his district either remained unchanged or showed a sl~ght 1111provement. The indicated production for corn m New Mexico rose from 1,712,000 bushels on September 1 to 1,926,000 bushels on October 1, and the latter figure co~ pares with an actual production of 3,33~,000 bushels ] 933. The forecast for other states remamed unchange . According to the fiaures compiled by the Federal Reserve Board from the Oct;ber 1 estimates, by states, of the Department of Agriculture, the indicated production of co~n for this district totaled 63 166 000 bushels, as compared WIth in actual production of 85 035 000 bushels in 1933. The on Y Change in the indicated 'production for grain sorghum~ was a slight increase for Arizona. The forecast for Texa~ IS for a production of 33,824,000 bushels as ~ompared WIth 46'd508,000 bushels harvested last year. WhIle the lat.e plante sorghums will produce roughage, moisture supph~s I?enei ally have been insufficient to mature grain. The mdlCate production of tame hay in Louisiana, Oklahoma, and New Mexico showed an increase during September, but the prospects in Texas declined from 453,000 tons on Septembedr 1 to 396,000 tons on October 1. In 1933 the State produce 508,000 tons. d d The prospects for peanuts in Louisiana and Texas showed some improvement during the month, but the October 1 e.stimates were still considerably under the 1933 productIOn. The forecast for Texas on October 1 was placed at 56,000,000 pounds, as compared with 48,000,000 pounds on September 1, and an actual production of 103,54,0,000 pounds in 1933. An improvement in the pecan crop in Louisiana and Oklahoma occurred during the month. The prospective yield in Louisiana, however, is for a production of only one-third of last year's yield, and in Texas it is onehalf of the 1933 production. The broomcorn crop in Oklahoma and New Mexico also showed an improvement during the month. The Texas rice crop, which was forecasted as 7,590,000 bushels on October 1, was the same as a month earlier and compares with an actual production of 7,473,000 bushels a year ago. The September rains materially benefited the sweet potato crop in Louisiana and Oklahoma with the result that a considerable increase in production was forecasted on October 1, and in Louisiana it is higher than the actual production a year ago. The indicated production of apples, pears, grapefruit, and oranges for Texas is substantially higher than the production of 1933. While the condition of ranges over a considerable portion of this district reflected a noticeable improvement during the past month, conditions are still very spotty. In favored areas along the Coast and in South Texas sufficient moisture has been received to insure winter grazing. Good conditions also obtain in scattered localities in other sections of the district. Although good rains fell in much of the South Plains area and in portions of the northern district of Texas during the latter part of September, more rain will be needed to insure grazing from small grains. In the extreme northwestern section, in the Trans-Pecos area, in the Edwards Plateau region of Texas, and in southern New Mexico little moisture fell dming the past month, and the condition is very critical as very little range feed is available. In northwestern Texas and portions of New Mexico, it is too late ~or rains to benefit ranges, but they would be very benefiCIal for small grain pastmes and stock water. In the sheep and goat territory, however good rains would give winter weeds and grass a good start: Livestocl, The condition of cattle ranges in Texas was rated by the Department of Agriculture at 54, per cent of normal on October 1, as compared with 50 per cent a month earlier, and 80 per cent on the same date a year ago. Sheep and goat ranges were rated at 43 per cent of normal condition on October 1, which represents a decline of 7 points from that on September .1, and 26 p~i~ts from the c.orresponding elate of 1933. WhIle the condItion of cattle 111 Texas improved 2 points during Septemb~r, that of sheep. declined 4 points and that of goats 10 pomts. The condItIOn figures of all classes of livestock were sharply lower than a year ago. In New Mexico the condition of ranges showed a further slight decline, but that of cattle and sheep showed some improvement. There was little change in conditions in Arizona. With the slowing down in the Federal Movements purchases of cattle and calves, the Sepand Prices tember receipts at the Fort Worth market showed a marked decline from those in August, but were still materially higher than a year ago. The arrivals of hogs MONTHLY BUSINESS REVIEW 4 were moderately lower than in the previous month, and reflected a sharp decline from September, 1933, when Federal purchases were at a peak. During the month, the Federal Government began the purchase of sheep in this district with the result that Fort Worth receipts showed a noticeable gain as compared with both the previous month and the same month last year. month. The better grades of cattle usually sold to an active demand at slightly higher prices. The hog market, after reaching a top at $7.75 late in August, declined steadily during the subsequent six weeks, and at the middle of Octo· bel' the best offerings were bringing only $5.70. Sheep and lamb prices remained generally steady. COMPARATIVE TOP LIVESTOCK PRICES (Dollars pcr hundredweight) The cattle market ruled generally steady during the past FORT WORTH LIVESTOCK RECEIPTS (Number) Cattle .......•... Calves ......... . Hegs ......... . . . Sheep .......... . September 1034 83,056 52,151 31,306 45,798 September Changeover year 1033 34,740 +48,910 24,003 +27,188 85,210 -58,814 31,390 +14,300 August 1934 154,070 72,300 34,834 22,474 Change over menth -70,414 - 20,149 - 3,438 +23,324 Beef steers ........ . ..................... . Stooker steers ............ .. ............. . Butoher oows ...... . .....•.....•.....•... Stooker cows ............................ . C~ves ............ • ..... • .....•......... r~:t"::::::: :::: :::::: ::::::: ::::: :::: Soptember 1034 $6 .75 4 . 15 3.05 September 1033 S5.15 3:25 4:50 4 .75 7 .45 3 .50 6.00 5.20 3 .00 6.25 August 1034 $6.15 3.50 3.50 4:50 7.75 3.00 0.25 FINANCE Federal Reserve Bank loans to member banks continued in nominal amount during the past month. The total of these loans on October 15 was $57,000 as compared with $151,000 on September 15, and $2,258,000 on the corresponding ' date of 1933. There were only 4 banks borrowing from the Federal Reserve Bank on October 15 as against 8 banks a month earlier, and 68 banks a year ago . Advances by the Federal Reserve Bank to industrial and commercial businesses for working capital purposes totaled $157,000 on October 15 as compared with $4.4~OOO on September 15. Holdings of bills purchased in the open market amounted to $159,000 at the middle of October, as compared with $142,000 a month earlier, and $280,000 on the same date last year. There was no change during the month in the holdings of United States Government securities. The reserve deposits of member banks rose to $124,,34.8,000 on October 15, which was $4,307,000 greater than on September 15, and $45,334~000 above those on the corresponding date of 1933. Federal reserve notes in actual circulation reflected a seasonal increase of $5,793,000 during the month, and the total of $54,559,000 on October 15 was $20,584,000 greater than a year ago. Operations of the Federal Reserve Bank CONDITION OF THE FEDERAL RESERVE BANK (In thousands of dollars) Total oash reserves ............ . . . ...... . . Discounts for member banks ..........•.... Industrial advances ...................... . Bills bought in open market .......... . ... . United States seourities owned .......•..... Otber investments . ............ . ......... . Total earning D88ets ............... . ...... . Member bank reserve depe'"ts . . .. . ... . .. , . Federal reserve notes in aotual oirculation . . . Federal reserve bank notes in aotual oiroulation .. . ... . . .. ...................... . September 12 and October 10, "all other" loans rose $6, 079,000 during the same period. During the four-week period investments in United States securities were increased $6,783,000, and those in other securities showed a gain of $1,64.8,000. Total investments on October 10 were $72,067, 000 above those on the corresponding date in 1933. The net demand deposits of these banks totaled $290,].4.7,000 on October 10, which was $11,930,000 lower than four weeks earlier, but $61,257,000 greater than a year ago. Their tirne deposits amounted to $121,724,,000 on October 10, as cornpared with $122,293,000 on September 12, and $123,296, 000 on October 11, 1933. CONDITION STATISTICS OF MEMBER BANKS IN SELECTED CITIES (In thousands of dollars) Oct. 10, 1034 United States seourities owned ............ . 5170.221 All othor stocks, bonds, and seourities owned. 00,055 Loo.ns on seourities . .......... . .... . ..... . 40,520 All otlier loans ............... . ........... . 145,400 Total loans ...... . ...................... . 104,038 Net domand dopooits ............ .. ...... . 200,147 Time doposits ........................... . 121,724 Reserve with Federal Reserve Bonk ....... . 76,031 Bills payable and redisoounts with Federal Reserve Bonk . ........................ . None Sept. 12, 1084 $172,438 58,407 50,436 130,330 180,700 302,077 122,203 84.561 150 None Deposits of Member Banks Oct. 15, 1034 $122,600 57 157 150 71,475 Nono 71,848 124,348 54,550 Oct.15, 1033 S 83,244 2,258 None 280 57,177 5 50,720 70,014 33,975 Sept. 15, 1034 S108,031 151 44 142 71,475 None 71.812 120.041 48,766 None 15,040 The net demand deposits of mernber banks in this district averaged $557,31.8, 000 in September as compared With $527,054.,000 in August, and $4,00,597,000 in September, 1933. The increases were about equally divided between reserve city and country banks. The time deposits of these None DAILY AVERAGE DEPOSITS OF MEMBER BANKS (In thousands of dolhirs) Combined Total Condition of Member Banks in Selected Cities Oct.11, 19S3 $115,051 52,158 50,308 155,025 215,203 228,800 123,206 47,105 The loans and investments of reporting member banks in selected cities reflected a noticeable increase between September 12 and October 10. The loans of these banks have shown a steady expansion since the low point was reached early in June, and the total of $194,,938,000 on October 10 was $5,172,000 in excess of that four weeks earlier, and $12,576,000 above the summer low. While loans on securities declined $907,000 between Sept., Oot., Nov., Deo., Jan., Feb., Mar., ,'\pril, May, June, July, Aug., Sept., Net demand deposits 1033 ...... $400,507 1933... . .. 436,027 1083.. . ... 460,198 1938...... 404,176 1034...... 505,000 1034...... 632,717 1984...... 535,355 1084...... 523,307 1034 . ..... 510,000 1034...... 519,465 1084 . ..... 521,333 1034 . ..... 527,054 1034 . ..... 567,318 Reserve City Banks Time Net demand doposits deposits $187,508 $105.145 186,036 210,987 187,047 228,265 186,687 240,071 192,214 240,001 105.746 261,770 102,766 26:1,291 192,648 257,838 102,830 253,752 102,712 21i0.456 107,600 255,210 106,825 260,001 104,215 275,831 Country Banks _ Time Net demand Time deposits deposits deposits $110,146 $205,452 $77,362 100,264 225,040 77,672 106,014 237,033 81,038 106,132 258,205 80,555 108,317 256,818 88,807 110,348 270,047 86,308 108,385 ?72,004 84,381 107,015 265,650 84.033 108,146 262,338 84,684 100,507 203,000 88,115 112,632 200,123 85,058 111,551 260,003 85,274 100,110 281,487 85,105 6 MONTHLY BUSINESS REVIEW banks, which averaged $194.,215,000 in September, were $2,610,000 smaller than in August, but $6,707,000 greater than a year earlier. Debits to individual accounts at seven· teen principal cities in the Eleventh Dis· trict in September reflected a further seasonal expansion of 3.9 per cent over the previous month, and were 15.0 per cent larger than in the same month last year. The August to September increase, Debits to Individual Accounts DEBITS TO INDIVIDUAL ACCOUNTS (In thousands of dollars) Percentago Snptember Snptember change over year 1933 1934 +10.1 S 4,782 $ 5,265 +50.3 15,294 22,989 +22.6 12,739 15,619 .4 3.181 3.167 +15 .2 150.578 173.515 +36.0 12,743 17,332 +13.8 49,161 5Ii,956 +26 .2 19,051 24,042 + 5.0 126,543 132,920 +11.3 4,542 5,053 +16.3 1,824 2.122 +23.6 39,632 48,985 +22.9 24.525 30,150 + 3.6 5,098 5,281 +12.5 5,289 5,94Q,...· - 1.6 13,788 13,572 +19.4 8,545 10,205 Percentage August 1934 S 4.837 28,668 16,130 2,525 159,124 16,544 56,326 20,635 127.589 5,290 1,744 50,374 27,747 4,773 6,607 11,192 10,527 chango ovor Abilcne ........ . Austin ....... .. . Beaumont . . .... . Corsioana ...... . DallllB .... .... .. EIPlIBo ... . ... . . Fort Worth .... . . Galveston . . .... . Houston ...... . . . Port Arthur .... . RoswelL ....... . San Antonio . ... . ~hrevoport•..... exarkana ..... . Tueson ......... . Waro ... ..... . . . Wiehita Falls ... . Total..... $572.122 S497,315 +15.0 $550,632. -Inoludes the figures of two banks in Texarkana. <\.rkansnR, located In Distriot. month + 8.8 -19.8 - 3.2 +25.4 + 9.0 + 4.8 .7 +16.5 4.2 - 4.5 +21.7 - 2.8 + 8.7 + 10 .6 -10 .0 +21.3 - 3.1 + + 3:9 the EIghth however, was smaller than usual and the gain over a year ago fell considerably under the similar gain in August. There were seven cities in which debits showed a decline from August, but there were only two in which they were below September, 1933. The volume of acceptances executed by accepting banks in this district and outstanding at the end of September was substantially larger than a month earlier, but was considerably smaller than the volume outstanding on September 30, 1933. Acceptances based on export and import transactions amounted to $280,54.1 on September 30 as compared with $82,64.1 on August 31; those executed against the domestic storage and shipment of goods totaled $650,000 on the fonner date as against $153,000 on the latter date. Acceptance Mar/,et There was a general increase during the past month in the volume of savings deposits in banks of this district which maintain a savings department. Savings deposits of 129 reporting banks totaled $14,2,74.1,118 on September 30 which was 0.9 per cent higher than a month earlier and per cent greater than on the corresponding date of 1933. There was also a slight increase in the number of savings depositors. Savings Deposits 8.6 Correction: In the Monthly Business Review dated October 1, 1934" the amount of s~vings deposits on August 31, 1934" for Waco, Texas, was gIven as $5,089,035, whereas it should have been $6,089,443. SAVINGS DEPOSITS Number of m savings depositors 8,565 75,269 11 194 33 '172 16'787 '180 64 , 4,866 2200,072°31 , savin~s savings August 31, 1084 Amount of Poroentage ohange Numbor of over month in savings savinflB depOSits savings deposits dopositors S 3,315,371 8,442 +3.7 24,492,619 75,138 + .6 4,707,201 11,002 +1.2 10,260,124 33,113 + .3 0,823,815 16,808 +1.2 28,490,576 64,020 + .6 1,926,961 . 4,846 +2.7 15,150,321 19,850 + .9 10,211,541 21,601 +1.7 6,080,443-10,579 +1.4 2,886,707 5,756 + .2 24,048,103 52,912 +1.0 Peroontage ohange over year in savings deposits +10 .8 5.9 +19.0 savings depOSIts depositors $ 3,103,204 7,901 23,260,696 3 72,345 3,970,958 99,666 10,253,590 2 32,279 9,947,721 4 16,614 27,761,404 4 63,756 1,863,458 11' 4,526 13,001,217 2 17,631 9,533,407 6 21,318 5,544,367 3 10,433 2,407,982 3 1~'~g 5,465 20,770,729 3 58 '184 50,373 70', ~ S142,741,118 312,307 $l~I,427,742. 10 in Houston, and in "All othors" reported the numbor of savlllgs dopOSltors. rer.~~!,g Beaumont ... .. ...... ·.· .. . DnllllB .... ....... .... .... · EIPlIBo . . .... ............ . Fort Worth ............... · Galveston ... ........ .... · . Houston ................ · · . Port Arthur ...... .... .. ... . San Antonio .... .. ........ . Shreveport ... .. .. ... ..... . Waoo ......... . ... . . · .. ··· Wiohita Falls ............. · All otbors. . . ...... . . . ..... Ttl -Only ~ ~~~~ i~ 'D~il;", Snptember 30, 1933 Amount of Number of Septcmber 30, 1934 Nnmber of Amount of deposits $ 3,439,676 24,634,420 4,762,532 10,200,082 9,040,413 28,660,705 1,070,515 15,286,240 10,386,840 6,172,312 2,802,970 24,277,404 + + .4 .1 + 3.3 + 6.2 +17.6 + 9.0 +11.3 +20.1 +16.0 + 8.6 $141,411,875 324,256 + .9 71 -'Revised. Prevailing rates: OCTOBER DISCOUNT RATES DallllB . .I I lIB that now eligible for Rate oh.arged customors onJrune eommerelD paper suc I ... . . ........ redIscount under the Feral Resorve Aet ... . ..... . : ... .. ..... . Rate charged on loans to othor banks secured by bills ret~OIvable'~lI't' ccil~i~;~I' (;I~i " Rato on loans scoured ~ prime stock exohange or 0 ler ourr t b ks) ' inoluding loaus pine in other markets through correspondeD an . Demand .................... ·· · ··· · ······ · ············· · ·· · · ·· · ··· · · . cha~~eon ~crr;m~diiy 'p~p~" B~~~;~d ;';~r~ho;'8~·"deeij,i8"oto·.::::: ::: : :::: : Rate by Rate on oattle loans .... ... ....................................... ElPlIBo 2-7 5- 6 6-8 5- 6J ~ 5-8 I 5- 8 : 2* 8 (1-8 Fort Worth 1~-7 6 i1d ~(1-8 r~ (1-8 5-10 5-10 ,) 8J (1-8 6-10 "I 6-8 1~ ) Houston San Antonio Waoo 5-7 5-6 (1-8 6 3-6 (1-8 (1-8 8:;.;1 8-10 (1-8 6-8 5- 6 8 "r..JJ ' 5-7 1 5- 7 3- 7 7-10 5~ INDUSTRY The receipts of cottonseed at Texas mills dul'ina the first two months of the current ~eason were substantially smaller than in the same period last year, due largely to the ~'educed ginnings, but at United States mills there was an mcrease Cottonseed Products in receipts. The crushings of seed and the production of all classes of products during the current season were substantially lower than in the corresponding period of the previous season. While the stocks of cottonseed and linters on hand at the end of September were larger than on the MONTHLY BUSINESS REVIEW 6 same date in 1933, supplies of crude oil, cake and meal, and hulls were noticeably smaller than a year ago. porters of American cotton have shown large declines froJll a year ago. STATISTICS ON COTTONSEED AND COTTONSEED PRODUCTS COTTON MOVEMENTS THROUGH THE PORT OF GALVESTON (Bales) Cottonseed received at mills (tons) ....... . .. . ........ . . Cottonseed orushed (tons) ..... Cottonseed on hand Sept. 30 (tons) ..................... Crude oil produced (pounds) ... Cake and meal ~roduced (tons) Hulls produoed tons) ......... Linters produced (running bales) ..................... Stocks on hand Sept. 30: Crude oil (pounds) ........... Cake and meal (tons) ......... Hulls (tons) ................. Linters (running bales) ..... ... Texas United States Aug. 1 to Sept. 30 Aug. 1 to Sopt. 30 This season Last scason This scason Last scason 00 380,116 203,746 270,131 68,716,667 06,720 64,360 463,740 301,400 1,218,517 638,042 1,126,666 756,002 601,612 261,653 803,236 80,660,380 103,202,268 230,760,137 288,327 388,874 141,573 208,711 86,000 172,770 38,461 46,067 130,644 16,832,402 61,140 35,062 45,062 25,222,141 81,234 64,462 35,215 46,764,563 170,251 00,074 118,323 01,332,760 257,704 146,834 113,048 Reflecting the effects of the widespread strike in the textile industry during September, the consumption of cotton in the United States amounted to only 295,96p bales, as compared with 420,949 bales in August, and 499,482 bales in September last year. Consumption during the two months of the current season totaled 716,909 bales, whereas 1,088,384, bales were consumed in the corresponding period of the previous season. Stocks of cotton held by manufacturers on September 31 were slightly larger than a month earlier, but somewhat lower than a year ago. While the consumption of cotton and the production of cloth at reporting textile mills in Texas were in greater volume than in August, they were considerably under the total for September, 1933. Stocks of cloth and unfilled orders on hand on September 30 declined as compared with those on August 31, but stocks were considerably higher than a year ago. Sept. 1033 243,004 401,434 August 1 to Sept. 30 This season Last season 570,163 For Great Britain ...... ....... ..................... . . For France . .................... . .. ........ . ........ . For otber foreign ports .............. . ................ . For coastwise ports ................ .. . ...... ........ . . In oompresses and depots .. Sept. 30, 1034 2,500 8,000 32,300 1,000 400,000 Sopt.30, 1033 4,000 3,500 20,000 2,000 553,370 Total. ................................. . 638,400 ""58'8.870 00 ......................... . COTTON MOVEMENTS THROUGH THE PORT OF HOUSTON (Bales) September 1034 Receipts ....... . ............ . 289,534 Exports .................... . 103,168 Stocks, September 30 ... . . ... . Aug. 1 to Sept. 30 September This seasoll Last season 1033 353 905 652,452 486,362 IBO'385 500,715 315,021 006:600 1,308,837 SEASON'S RECEIPTS, EXPORTS, AND STOOKS OF COTTON AT ALL UNITED STATES PORTS-(Bales) Aug. 1 to Sept. 30 n This soason Last scaso Receipts .......................... .. .... .. ....... .. . . 1,180,089 1,~~~'~~~ Exports: United Kingdom .... .... ...... .......... . . .. ~~'m 165:718 France ..... . .............................. . 54'548 126,068 103' 014 262,024 g~~~~~y::::::::: :: 135' 058 182,660 344,650 Y;rh:~ .E~~~~:::::::::::::::::::::::::::::: 230'176 50' 658 72,172 Al other oountries .......................... . 747'423 1,300,871 §~:~fh~i~~t:li~~ii.;J 'St~~~ 'p~;~; s;,pt~~b~; 30: ::::: 2,828:875 3,403,321 880,665 7,353,742 400,482 . 866,130 770,178 205,060 .............. :::::: :::::: ::::: ::::::: : COTTON CONSUMED AND ON HAND Sept. 1034 00 Aug . 1 to Sept. 30 Septembcr This seasoll Last season 1033 227 804 352,404 302,021 200' 087 108,522 146,447 538:400 688,870 COTTON-GALVESTON STOCK STATEMENT (Bales) 128,466 Textile Milling Cotton·growlng states: Cotton consumed ........... On hand September 30 inConsuming establishments. Public storage and compresses ... . ............ UnIted States: Cotton consumed ........... On hand September ao inConsuming establishments. Public storage and compresses ... ...... ....... Scptember 1034 Receipts .. 180,156 Exports ..... ............... . 137,847 Stocks, September 30 .. .. . ... . 7,012,135 716,009 1,088,384 1,056,744 1,150,573 7,616,140 7,376,143 The receipts and exports of cotton at Houston and Galveston in September showed a large seasonal expansion as compared with the previous month, but were considerably smaller than in the corresponding month last year. While stocks of cotton at both ports on September 30 were larger than a month earlier, they were smaller than on the same date in 1933. Cotton Movements Exports of cotton from the United States during September amounted to 479,861 bales, as compared with 267,562 bales in August, and 86,9,244 bales in the same month of 1933. The September volume was smaller than in any corresponding month in twelve years. During the current season exports of cotton to all countries which are important im- SPOT COTTON PRICES- (Middling Basis) (Cents p~r pound) ------------------~--~~--~------------------Oct. 15, Newyork .............................. . New Orleans .... . ..... .. ........ . ....... . DalIas ................................. . Houston ........ ........................ . Galveston. , ............. , ........... , .. . September, High 13.40 13 .32 13 .00 13.40 13.35 1034 Low 12 .55 12 .70 12 .20 12.55 12 .60 1034 12 .50 12.61 12.15 12 .55 12.55 th Petroleum Crude oil production in the Elr4e;4,' Federal Reserve District totaled 3 , 000 000 barrels in September, as compared with 33,108'la st barrels in August, and 34,,501,500 barrels in SepteJll~erthaJ1 year. The decline from the previous month was mOle erage accounted for by the shorter month, as the da~l~ aVactiVproduction reflected a gain of 14,800 barrels. Dnllmg here ity reflected a further curtailment during the monthiJ Tells were 765 wells completed in September, of which 52 0~v830 were producers of oil with an initial flow of 1,9, 'Iud. barrels, whereas 799 wells were completed in August 601 ing 581 oil produceFs showing an initial output of 2,1 " barrels. If: '1 MONTHLY BUSINESS REVIEW ----------------------------------------------------------------~ The daily average production in Texas fields amounted to 1,012,650 barrels, which was 16,700 barrels above the aver· nge for August, but 69,650 barrels lower than in September, 1933. While the daily average production increased at all fields except North Texas, most of the gain occurred in the East Texas field. Both the total and daily average produc. tion in the North Louisiana and New Mexico fields declined as compared with August. SEPTEMBER DRILLING RESULTS ~ orth Toxas ... . ............ . Eontral West Texns ... .. ... . . 8:st Texns .... . ..... . . .. ... . T uth Texns . .. .. ...... .... .. oxas Coastal.. ........ . .... . N Total Texas. . . . .. ... 30,379,500 N0W Moxioo. . . . . . . . . . . . . . . . . 1,384,500 orth Louisiana..... . . . . . . .. . 720,000 1,012,650 46,150 24,000 -404,050 - 80,550 - 30,500 Total Distriot.. ...... 32,484,000 1,082,800 -624,000 Gns wolls 10 1 5 10 Total Toxns ....... New Moxioo ........ . .. . ... North Louisiana .... .. ..... . 723 16 26 504 15 7 26 1 7 103 12 1,855,601 45,060 160 Soptembor totals, distriot .. .. August totals, distriot ...... . I nornase or deornase over August, 1034 Totnl Daily Avg. -146,150 000 - 12Ji,700 + 1,850 _ 54,100 + 13,600 _ 20,050 + 000 - 130,050 + 1,250 Pro· duoors 107 64 255 47 31 Fnil· North Texns ........ . .. ... . Contral Wost Toxas ...... .. . ElIStToxllS . . ......... . .... South Texns ............... Texns Coastal .. ... . ........ OIL PRODUCTION-(Barrels) Soptembor, 1034 Daily Avg. Total 118,2Ji0 3,547,500 183,050 5,491,500 475,700 14,271,000 57,850 1,735,500 177,800 5,334,000 Initial produotion 27,467 80,037 1,710,108 10,460 17,620 Com· plotio"s 173 04 280 117 60 765 790 526 581 34 31 205 187 1,000,830 2,114,607 urea 56 20 20 60 28 (OU statistics oompiled by "The Oil Wookly", Houston, ToxllS) +16,700 - 1,400 500 +14,800 While the valuation of building permits issued at principal cities in the Eleventh District during September was 12.9 per cent smaller than in August, it exceeded the low figure of September, 1933, by 81.0 per cent. The total for the first nine months of the current year was only 1.5 per cent smaller than that in the same period of the previous year. Of the fourteen reporting cities, there were five in which the valuation of building permits issued in September was larger than in the preceding month, and ten in which it was larger than a year ago. Building Permits CRUDE OIL PRICES Ootober 12, Ootober 13, 1033 1034 $1.12 $1.12 ~oxns Cons tal (34 gr. nnd above) ................ . ..... . 1.03 1.03 Nor:t Texns (40 ~r. and above) .. ... ............. · .. ··· 1.03 1.08 or Louisiana (40 gr. and above) ...... . ....... .. .... , BUILDING PERMITS - Soptember, 1084 No. ~mnri!Jo ....... Buattn ......... cenumont . ..... D~W: Christi. . ~IPnso:::::::: G~~~:~rth .. ... II n ...... P ouston ........ ort Arthur ~nn Antonio'. '. '. : Whreveport ... .. nco. Wiohita 'Fat'la: :: _Tot.!. ..... Valuation No. - - - - - -12 28 $ 28,160 100 05 33 330 44 134 170 170 51 153 177 15 82 58,886 14,142 71,717 145,078 23,411 85,700 56,642 310,796 11,616 58,340 273,627 14,513 17,241 Peroentage change valuation over yoar Valuation +516 .0 4,572 $ - 4.0 61,360 - 28.7 19,822 +333 .0 16,661 + 28.0 112,554 +668.0 3,586 + 11.4 76,021 +175.5 20,668 + 53.0 200,078 - 33.5 17,466 + 21.7 47,025 +606.3 34,362 - 30.4 23,067 +540.4 2,655 Soptember, 1088 65 86 34 268 30 70 116 104 76 121 104 17 14 - - 1,618 $1,178,867 1,214 S 651,385 - + 81.0 August, 1034 Percentage obange valuation over month Valuation + 67 .2 $ 16,842 - 60.7 104,514 - 81.1 74,740 + 86.1 38,735 - 25.0 106,677 - 38.1 35,001 - 16 .5 101,430 +106.5 27,438 - 2.6 328,350 + 15 .9 10,023 - 16.6 60,001 + 06.1 130,546 - 53.0 31,500 - 81.0 00,812 12 .0 $1,358,712 - No. 20 07 116 30 368 67 00 132 220 54 144 200 21 82 -1,650 - - January 1 through Soptember 30 Peroentage ohange 1083 1034 valuation over period Valuation No. Valuation No. + 60.0 156 S 137,705 255 S 233,031 1,106,851 - 42.8 684,460 777 717 143,061 + 72.8 730 248,758 805 132,776 +120.8 220 203,172 220 1,560,550 + 12 .3 1,752,361 3,003 3,384 144,514 + 30.3 325 201,267 371 2,503,401 - 74.4 750 641,278 760 312,465 + 35.5 828 423,444 1,122 2,520,860 + 80.0 1,680 3,617,000 1,612 78,725 + 30.8 426 109,605 410 703,276 - 27.8 672,508 1,104 1,219 367,013 +160.7 063 980,811 1,436 2Ji3,200 4.8 213 241,176 162 67,476 +218.4 250 214,850 612 13,180 $10,064,714 11,445 $10,210,780 - -1.5 - MONTHLY BUSINESS REVIEW 8 SUMMARY OF NATIONAL BUSINESS CONDITIONS (Compiled by the Federal Reserve Board, October 28, 1984) Volume of industrial production remained unchanged in September when there is usually a seasonal increase and factory employment and payrolls declined. An important factor in the decrease was the strike in the textile industry. Retail trade in rural districts showed a large increase, and sales at department stores in cities also increased, though somewhat less than seasonally. Deposits at banks and commercial loans continued to increase. PRODU~TION AND EMPLOYMENT Volume of industrial production, as measured by the Board's seasonally adjusted index, declined from 73 per cent of the 1923-1925 average in August to 71 per cent in September. There were substantial declines in activity at cotton and woolen mills, reflecting the influence of the textile strike, and in the output of shoes, automobiles, and lumber. After the termination of the strike textile production increased. Steel mill operations, which had declined sharply during the summer, have been at a higher level in recent weeks than in the early part of September. Production of beef and lamb increased further in September, reflecting in part the disposal of animals bought in the drouth areas by the Federal government. Wheat flour production and sugar meltings also were larger in September. Output of anthracite and bituminous coal showed a larger than seasonal increase. Factory employment and payrolls declined considerably in September, largely as a result of the textile strike. The number of workers employed was substantially reduced in the automobile, iron and steel, and shoe industries, as well as in the basic textile industries. There was a larger than seasonal increase in employment in clothing industries, while in the non-ferrous metals, building materials, food products, and paper and printing industries employment was sustained. Among non-manufacturing lines, employment increased seasonally from August to September at coal mines and in retail trade. There was also a substantial increase in number of persons provided with work by the emergency work program of the Federal Relief Administration, while employment on public works decreased somewhat. The value of construction contracts awarded, as reported by the F. W. Dodge Corporation, continued in about the same volume during September as in other recent months. The Department of Agriculture crop reports for October 1 indicated a cotton crop of 9,443,000 bales as compared with a yield of 13,047,000 bales last year. The corn crop, which averaged 2,516,000,000 bushels from 1927 to 1931, is estimated at 1,417,000,000 bushels this year. Hay and pasture conditions improved in September, and weather in the first half of October was generally favorable for forage crops. The yield of white potatoes is esti- mated at 362,000,000 bushels, about equal to the average for 1927-1931. DISTRIBUTION Daily average railroad freight-car loadings increased from August to September by about the usual seasonal amount, but declined slightly in the first half of October. Sales at department stores increased from . August to Sepi tember by somewhat less than the estImated seaso na amount, while retail sales of general merchandise in ruraJ districts,- as shown by reports of mail order houses an chain stores to the Department of Commerce, increased considerably. COMMODITY PRICES Wholesale prices of farm products and foods, which had advanced sharply in August and the first week of September; subsequently declined somewhat. The weekly index. 0 wholesale prices of the Bureau of Labor Statistics, whIch had advanced from 74 per cent of the 1926 average at thd beginning of June to 78 per cent early in September, stoo at 76 per cent in the second week of October. Recent declines occurred principally in those products which had increased most rapidly in preceding weeks, such as wheat, cotton, livestock, and meats. Prices of commodities other than farm products and foods have in general shown li.ttle change since last January, but within recent weeks prIces of textile products and scrap steel declined slightly and gasoline prices showed a considerable decrease. The open market price of silver advanced sharply in the first half of October. BANK CREDIT Excess reserves of member banks have shown no material change during the past month and on October 17 amounted to about $1,750,000,000. A reduction in Treasury cash and deposits with the Federal reserve banks somewhat more than offset a seasonal growth of $57,000,000 in the volume of money in circulation and a continued growth in required reserves arising from a growth in deposits. Volume of reserve bank credit outstanding showed little change. At reporting member banks in leading cities there was a further growth in deposits and in loans and investments. Between September 19 and October 17 total deposits of the banks increased by about $500,000,000. Commercial loans to customers and member banks' holdings of United States Government securities increased further, while security loans declined. Short-term money rates continued at low levels during September and the first three weeks of October. Yields on Government securities declined in October, following an increase in August and September.
@FedFRASER