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Monthly Business Review
OF THE
FEDERAL RESERVE BANK
OF DALLAS
•
(Compiled October 15, 1936)
Volume 21, No.9
=
Dallas, Texas, November 1,1936
Thl. copy 10 released for pub.
IIcation In afternoon papers--
Oct. 31
DISTRICT SUMMARY
THE SITUATION AT A GLANCE
Eleventh Federal Re.erve District
Change from
September
AuguSt
1936
~ank debits to Individual accounts (at 18 cities) . $79 1.620 ,000
11.7%
a ellartment store sales....... _...................................... ............. .
40.6%
eserve bank loans to member banks at end of
it~th
$
218,302 -$;;10,818
CU dtng permit valuation at lars:er centers ......... $ 3,883,380 16.7%
9
~Illlllercial failUreS!nUmber) .................................
11
OIf'lllerclal failures liabilities) .............................. $
108,000 -$162,000
production (barrels) ............., ............................... 89,529,860
8.9%
+
+
II
.......................................................................
------------------------------------------------The distribution of merchandise at wholesale and retail
as
R maintained at a relatively high level during September.
etail buying at larger cities, as reflected by department
store sales, evidenced a further expansion of 41 per cent
~rom August to September, and was 18 per cent higher than
In the corresponding month last year. The gain over the
previous month, however, was less than the average for this
season, and this bank's adjusted index of department store
~ales declined from 107.2 per cent of the 1923·25 average
I~ August to 103.1 per cent in September. Wholesale
?lstribution, as represented by the sales of reporting firms
11\ five lines of trade, showed a moderate increase over the
previous month, and exceeded that of a year ago by a wide
~argin . The number and liabilities of commercial failures
In this district presented a favorable comparison with both
the previous month and the same month last year. Debits
~o individual accounts at banks in 18 principal cities were
2 per cent larger than in August, and 29 per cent greater
than in September, 1935.
The September rains came too late to be of much benefit
Lo crops. According to the October 1 report of the Depart·
:re~t of Agriculture, most of the crops barely held their own
. Ut1l1g the month and in some instances lower yields were
Indicated. This was particularly true of the cottOij crop in
Texas where the estimate was reduced 121,000 hales, and
the current forecast is smaller than last year's harvest. On
the other hand, the heavy rains provided a good season in
practically all sections of the district and enabled the farm·
ers to proceed with fall plowing and seeding operations.
Ranges and livestock improved rapidly during the month,
and the October 1 condition generally was above the average
for that date.
There was a further increase of $10,156,000 in the loans
of reporting member banks in leading cities of this district
between September 9 and October 7. Total loans of these
banks, which aggregated $221,851,000 on the latter date,
exceeded those of a year ago by $38,966,000, and were at
the highest level since the early months of 1933. Their in·
vestments were increased $7,932,000 during the four·week
period, and on October 7 were $21,030,000 higher than OIl
'the corresponding date last year. Federal Reserve Bank
loans to member banks declined from $523,000 on Septem·
. bel' 15 to a low level of $14.5,000 on October 15. The reserve
deposits of member banks established a new high record at
$156,116,000 on October 15, which compares with $146,·
131,000 on September 15, and $109,34,6,000 on October 15,
1935. Federal Reserve notes in actual circulation reflected a
seasonal expansion of $2,387,000 during the thirty·day
period.
Construction activity declined seasonally from August to
September. The valuation of building permits issued at four·
teen principal cities during the month was 17 per cent lower
than in August, but was 60 per cent above the total for the
corresponding month of 1935. While shipments of cement
from Texas mills declined during September, production
showed a further moderate expansion. Both production and
shipments reflected a wide margin of gain over the respective
figures for the same month a year ago.
BUSINESS
The demand for merchandise If,t whole·
sale increased moderately from August. to
September, and was materially higher
~han in the corresponding month last year. September sales
In four of the five .lines of trade investigated by this bank
lPholesale
Trade
reflected increases over those in August, and all lines reg·
istered gains over a year ago, ranging from 13.7 per cent
for groceries to 105.1 per cent in the case of farm implements. Late reports indicate that business in October is being
well sustained. Inventories in most lines increased further
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
2
MONTHLY BUSINESS REVIEW
during September and at the close of the month were considerably larger than a year ago_ Collections increased seasonally during September.
The sales of reporting wholesale dry goods firms declined
10.8 per cent from August to September, which was larger
than seasonal, but they exceeded those in the same month
last year by 30.1 per cent. The gain over a year ago was
participated in by all reporting finns. September collections
registered a gain of 19.9 per cent over the previous month.
For the fourth consecutive month the distribution of
groceries at wholesale registered a gain over the previous
month, the September expansion being 6.3 per cent. The
increase of 13.7 per cent over the corresponding month of
last year was the largest reported during the current year.
Stocks on hand at the end of the month were 9.9 per cent
greater than on August 31 and exceeded those a year ago by
16.5 per cent. There was a substantial increase in collections
during the month.
The demand for farm implements reflected a counter-toseasonal gain of 7.4 per cent in September and the volume
of business was 105.1 per cent in excess of that a year ago.
Reflecting the fall liquidation, collections increased 58.5 per
cent from August to September.
There was a heavy demand for hardware during Septem.
bel', the month's sales of reporting firms rising 12.2 per cent
above those in August and 28.2 per cent higher than in September last year. The wholesale hardware business has shown
a steady expansion since early in the year. September colCONDITION OF WHOLESALE TRADE DURING SEPTEMBER, 1986
Percentage of Increase or decrease i nNet Sale,
Sept., 1936
compared with
Sept.
Aug.
1915
Groceries ................. + 13.7
Dry goods ................ + 80.1
Farm lmplements .. + l0 6.1
Hal·dware................ + 28.2
Drugs....................... + 22.9
19J6
+ 6.3
- 10.8
+ 7.4
+ 12.2
+ 8.4
Ratio 01
collect10ns
Net S:lle.
Stock.
during Sept.
July I to date
S,pt. 30, 1936
to accounts
compared with
compared with
and notes
same period Sept. 10, Aug. 31, outstanding
last year
19l5
1936
Aug. 31
+12.9
+27.6
+56.5
+26.0
+16.8
+16.5 + 9.9
+11.3 - 4.5
+ . 5 + 6.9
+ 4.5 + . 4
+21.2 + 2.5
84.2
88.9
10.1
46.6
59 .7
lections were moderately larger than in the previous month.
The sales of wholesale drug firms reflected an expansion
of 8.4, per cent over the previous month, which was greater
than the average gain, and registered an increase of 22.9
per cent over those in September last year. The improvement
was general over the district. September collections were in
about the same volume as in the previous month.
Despite the unseasonably high tempera·
tures prevailing during September, pur·
chases of merchandise at retail were
maintained at a relatively high level. Department store sales
in principal cities rose 4,0.6 per cent from August to Sep·
tember, which was somewhat less than the usual chauge at
this season, and registered a gain of ] 8.2 per cent as coJll'
pared with the same month last year when there was one
less business day.
Retail
Trade
This bank's adjusted index of department store sales,
which takes into account average seasonal changes, stood aL
103.1 per cent of the 1923-25 average in September, as colll'
pared with 107.2 per cent in August, the high point of the
recovery period, and 91.7 per cent in September, 1935. The
cumulative sales for the nine months of the current year
exceeded those of the same period last year by ] 7.4, pel'
cent.
Inventories on hand at reporting department stores Oll
September 30 reflected an increase of 6.9 per cent over those
on August 31, and 6.8 per cent over those on the corresponding date last year. The increase in the rate of stock turnover
as compared with a year ago continued to widen as the gain
ill sales was considerably greater than the increase in average end-of-month stocks. The rate for the first nine months
of 1936 was 2.50 as against 2.27 in the corresponding period
last year.
Collections reflected little change during the month. The
ratio of September collections to regular accounts outstanding on September 1 was 37.0 per cent as compared with 36.9
per cent in August, and 35.4. per cent in September last
year.
BUSINESS OF DEPARTMENT STORES
Total sales (percentage) :
September, 1936, compared with September, 1935.................
September, 1986, compared with August, 1936 ................. ... ::::::::::::::: ...... .............................. .
Janunry 1 to September 30, compnred with same period last year ... :::::::::::'::::'::':::::::'::::::::':
Credit sales (percentage) :
September, 1986, compared with September, 1985 ................... . .......................................... .
September, 1936, compared with August, 1936....................
January 1 to September 80, compared with same period 1~·8t ·Ye~~::::::::::::::::::::::::::::::::::::::::::
Stocks on hand at end of month (percentage):
September, 1986, compared with September, 1985............... ..
September, 1936, compared with August, 1936 .... ...................:::::::::::::::::::::::::::::::.:::::::.: ........ .
Stock tUl'nover (rate) :
Rnte of stock turnover in September, 1935.... .. ... . .. .... . .... ..
Rate of stock turnover in September, 1986................................... ................................... ,.
Rnte of stock turnover January I, to September 80 1935 .... · ........ · .... ·.... ··· .. ·· .... ·.............. · ...... ·
Rate of stock tUl'nover January I, to September SO: 1936...:·.:·.··.::·.:·.·....:::::·.·::::::::::::··.·:.::..:......:::::: ....
Ratio of September collections to open accounts receivable and outstandlnc
September I, 1936............................................ ....... ......... ....... .................................... ................... .. .... .
Ratio of Septembe,' collections to installment accounts receivable and outstanding
September I, 1936........_............................................ ........................... .................... ..................... .... ..
Indexes of department store sales:
~~&~ig~tJi~!;,;i:}:~~:·:~;~:·: ~:~ ~:~ :~:;~ ·~: ~ :~: ~:. : :.: : ~ :~: ~ ~ :.: ~ ~ :~.:~:.: . : : :~:.: : ~ ~:~: ~.~:~: : : : :.:
~~&Jg~~l!;,;f:}:~~:: ·:~.~: : ~ :~: : :~: ·: :~:~ ~: : :~: : · :~:~ ~ : ~ ·i: : · .: : :~:;. :~ :.:~.· .~ :~;~ : : : ~.: :.:.: ~: .:
Indexes of department store stocks'
Doll ..
Fort Worth
HoustoQ
+ 19.2
+ 87 .4
+ 19.1
+ 16.4
+ 38.6
+ 19.8
+ 17.2
+ 60.0
+ 13.0
+ 16.5
+ 39.0
+ 18.8
+ 16.1
+ 50.0
+ 18.3
+
+
7.7
5.6
.38
.3n
2.60
2.77
37.3
+
+
8.1
6.5
.24
.26
1.96
2.26
32.9
+
18.1
+ 49.8
+ 16.3
+
+
.1
6.6
.25
.26
2.11
2.87
Sun Antonio
+ 17.1
32.1
+ 19.7
Others
+
+ 15.2
+ 41.8
+ 19.8
+ 11.9
+ 54.2
+ 12.6
t
+
16.8
44.6
17.5
9.4
10.3
+
+
6.8
6.9
+
+
9.1
6.8
.33
.35
2.64
2.79
+
+
+
+
19.8
47.7
16.0
Total Dii't.
+ 18.2
40.6
+ 17.4
+
.24
.28
1.89
2.10
+
.29
.31
2.27
2.• 0
40.0
40.1
8'1.3
37.0
14.8
14.8
18.7
15.6
9.8
86 .0
119.8
118.1
112.6
79.1
107.6
111.4
110.8
74.7
118.2
108.8
117.0
72.1
98.7 .
101.5
91.9
77.2
109.3
107.2
108.l
62.5
66.7
60.1
60.3
68.2
71.9
66.9
64:8
42.6
42.1
41.7
37.9
' . 48.1
51.9
48.6 .
47.6
61.9
66.6
60.7
59 .•
-
MONTHLY BUSINESS REVIEW
Commercial
Failures
Dun and Bradstreet, Incorporated, reo
ported a substantial decline in the num·
bel' and liabilities of commercial failures
i~ the Eleventh Federal Reserve District during September.
.1he r e were 11 failures during the month with an aggregate
Indebtedness of $108,000, which compares with 20 default-
8
ing firms in August owing $270,000, and 14, insolvencies in
September, 1935, with liabilities of $195,000. During the
third quarter of the current year there were 43 defaults with
an indebtedness of $441,000, whereas 69 firms failed in the
same period of 1935 having aggregate liabilities of $1,462,000.
AGRICUL TURE
Crop Conditions
Heavy rains over practically all sections
of the Eleventh District during September
left a good season in the ground, but they
carne too late to be of much benefit to crops. In most cases,
field crops no more than held their own, and in some instances prospective yields were lowered. On the other hand,
th.e improved moisture supply enabled fanners to proceed
WIth fall plowing and the preparation of the soil for seeding
of small grains. The sowing of winter wheat is well advanced
OVer most of the wheat belt, and the early seeded fields are
~p to a good start. Additional rainfall would be beneficial
In the extreme northwest portion of Texas, in southwestern
New Mexico, and in southeastern Arizona.
t
I
The prospective production of cotton in this district was
again reduced by the October 1 forecast of the Department
of Agriculture. The estimate for the Texas crop was placed
at 2,915,000 bales, which represents a decline of 121,000
bales from the September 1 forecast and 41,000 bales from
last year's production. The per acre yield was reduced from
123 pounds on September 1 to 118 pounds on October 1,
and the latter figure compares with 133 pounds per acre
harvested last year. The Department of Agriculture stated
that the decline was due to the excessive rains in all the
Cotton territory during the last two weeks of September, as
~he benefits received were more than offset by losses resultIng from the heavy rains and flooded fields. From the appended table, which shows cotton production by crop reporting districts, it will be noted that the largest declines in
production, as compared with a year ago, occurred in the
~orthwest Rolling Plains and North Central Plains, while
I.he largest increases were in the North Blacklands and the
Trans-Pecos Region.
with 3,697,000 bales on September 1 and a harvest of 3,569,000 bales in 1935.
Grain sorghums in Texas were benefited by the September rains. The October 1 forecast was for a production of
35,600,000 bushels as compared with an estimate of 33,820,000 bushels on September 1, and a total output of
60,075,000 bushels in 1935. The estimates for other states
attached to this district remained unchanged. The indicated
production of corn in Texas was reduced 2,131,000 bushels
during September. Prospects for tame hay declined in Texas
and Oklahoma, but there was an improvement in the crop
ill Louisiana and New Mexico.
The indicated production of the Texas rice crop remained
unchanged at 10,764.,000 bushels, but the Department of
Agriculture stated that the excessive and continuous rains
during September delayed tlu:eshing and damaged somewhat
the quality of rice in the shocks. The Texas peanut crop (for
nuts) was reduced 5,225,000 pounds during the month, and
the October 1 estimate of 88,825,000 pounds compares with
a production of 109,250,000 pounds last year. The Oklahoma production was placed at 15,600,000 pounds, which
was less than half of last year's harvest. The indicated yield
of sweet potatoes was lowered in both Texas and Louisiana,
and prospects are for a crop considerably smaller than in
1935.
September rains were very beneficial to the Texas citrus
crop. The preliminary estimate indicated a harvest of 6,730,000 boxes of grapefruit and 1,435,000 boxes of oranges,
which compares with 2,74-1,000 and 74,7,000 boxes, respectively, in 1935.
A marked improvement in the condition
of ranges throughout the Eleventh District occurred following the heavy general rains during Seplember. The Department of Agriculture reported that an
ample growth of grass for winter grazing is virtually assured
in practically all .sections of the district, provided the weather
remains favorable through the fall. Feed prospects are parLicularly good in south Texas and in the Edwards Plateau
and Trans-Pecos regions, In the formerly dry areas of north
and northwest Texas, prospects are that grain pastures will
furnish considerable supplementary grazing. Range conditions and feed supplies are generally good in most sections
of the southern half of New Mexico, and there has been
some improvement in southeastern Arizona. Due to the betterment in feed conditions, livestock are taking on flesh and
reports indicate that many grass fat cattle are available in
some sections.
Livestock
TEXAS-PRODUCTION OF COTTON BY DISTRICTS
(In thollsllnds of GOO-pound G. W. bales)
Indica ted
District
1916
~. W. High Plains ..... . ... .... .... ... ...... 398
N' W. Rolling Plains .. .... . .... ....... .... 353
l,t·th Central Plains ..... ........... ............
67
E~!{\Blackland8 .................... ..... 1,008
l'
exas . ... ....... .............. ........ .... 466
~~1~~~~J:~fl~~~' ':': : .: : : : : : : : : ::': : : : :::: 2~~
S oaB~al Plains .. ...... ...... .... . ... .... ....
84
Out Texas
....
............. ..... 108
Total Stllte .... ............ ...... .. .......... 2,915
SOURCE: Department of Agriculture
Pro duction Fiv e-y ear :werage
19l5
388
603
117
743
468
46
83
854
113
01
2,956
1928-12
423
769
119
1,~47
770
60
lOS
643
204
152
4,580
.The indicated per acre yield of cotton in Louisiana was
raised 20 pounds, and the total production was increased
55,000 bales during September. The estimated production of
711,000 bales on October 1 represents an increase of 155,000
ba.l es over last year's harvest. The estimate for Arizona was
l'alsed 6,000 bales. The Eleventh District production, as
cOlllpiled by the Board of Governors of the Federal Reserve
Syslem, hom Department of Agriculture eSLimates by states
as of October 1, was placed at 3,619,000 bales as compared
The October 1 condition of cattle ranges in Texas was
rated by the Department of Agriculture at 86 per cent of
normal, which was 11 points higher than a month earlier,
and 6 points .. qbov~ the ten-year a~erag~, Sheep and goal
MONTHLY BUSINESS REVIEW
4
ranges were rated at 92 per cent of normal condition on
October 1, or a gain of 14 points during the month. The con·
dition of cattle on October 1 was 86 per cent as compared
with 82 per cent on September 1 and 87 per cent on the
same date last year. Sheep improved 3 points during Sep.
tember, but the October 1 rating of 84 per cent was 6 points
lower than a year ago. The condition of goats rose 1 point
during the month. Range and livestock conditions on Octo·
ber 1 in New Mexico and Arizona were rated higher than a
month earlier.
The supplies of cattle and calves at the
Fort Worth market increased further during September, but the receipts of cattle
fell far short of those in that month of 1935. The arrivals
of sheep and hogs were sharply lower than those in either
the previous month or the same month last year.
Movements
and Prices
The cattle market evidenced all uneven trend during the
past thirty days, but there was usually a good demand for
quality offerings at firm to higher prices. The hog market
was sOl11ewhat erratic with the trend toward a lower level.
At the middle of October, the best offerings were bringing
$9.75, which was $0.65 lower than a month earlier. Sheep
and lamb prices were slightly higher.
FORT WORTH LIVESTOCK RECEIPTS
(Number)
Sept.
1916
Cattle........................
Calves.......................
Has . ............. ·....···.. ··
Sbeep........................
55.198
36.966
15.767
32.979
S<pt.
Chnnge over
Aug.
1915
)'ear
1916
79 .386
36.060
22.482
46.692
- 24. 143
n05
- 6.675
- 12.613
48.267
32.390
18.006
72.860
+
Chnnge ovel
month
6.926
4.676
- 2.248
- 39.881
+
+
COMPARATIVE TOP LIVES'rOCK PRICES
(Dollars per hundl'edwcight)
August
Sept.
Sept.
191 6
1915
1916
$10.00
$ 8.00
6.60
8.10
6.00
6.10
11. 20
6.26
8.76
Beef steers............... .................................................... $ 9.00
Stocker steers................................................................ 7.0 0
Heifers and yearlings............................................ ..... 9.00
Buteher cows.......................................................... ...... 6.25
Calves.............................................................................. 7.26
Hoss................................................................................ 10. 85
Sheep..............................................................................
6.00
Lambs................................................................ .........
8.60
10.00
5.fiO
7.75
11.60
6.25
8.60
FINANCE
The demand for credit at reporting memo
bel' banks in leading cities in this district
continued to expand during the past
month. The total loans of these banks rose
to $221,851,000 on October 7, which was
$10,156,000 larger than four weeks earlier and $38,966,000
greater than a year ago. The expansion during the four· week
period occurred almost wholly in "All other" loans (agricultural, commercial, and industrial loans) as loans on se·
curities showed very little change. There was also a substan·
tial increase in investments. Their holdings of direct and
fully guaranteed obligations of the United States Govern·
ment were increased $7,168,000 between September 9 and
October 7, and the total Qn the latter date was $16,962,000
greater than a year earlier. Investments in other securities
rose $764,000 during the four·week period, and on October
7 their holdings were $4.,068,000 higher than on the corre·
sponding date in 1935. The demand deposits·adjusted of
these banks amounted to $362,316,000 on October 7, which
was slightly smaller than on September 9, but $51,860,000
above those a year ago. During the fo11).1 weeks, these banks
reduced their balances with other banks $2,127,000, but
there was an increase of $10,791,000 in inter·bank deposits
and $6,028,000 in United States Government deposits. Their
Condition of
Member Banks
in Leading
Cities
CONDITION STATISTICS OF MEMBER BANKS IN LEADING CITIES
(In thousands of dollars)
OCI.7 .
Oct. 9.
Sept. 9.
$187.098
$157.888
$181.503
87.896
60.199
36.828
48.7 66
44.375
177.476
221.861
862.316
120.546
48.068
197.217
175.159
96.497
44.688
40.682
142.268
182.885
310.456
121.164
22.936
166.438
164.268
62.276
47.992
44.840
167.855
211.695
362.573
120.8G9
87.040
186.426
177.286
96.846
None
None
None
1916
United States securities (owned) .................... ..
Securities fully guaranteed by United
States Govel'nment (owned) ...........................
All other stocks. bonds. and securities
(owned) .............................................................. .
Loans on securities.................................... .......... .
All other loans .....................................................··
Total loans.......................................................·..····
Demand deposits-adjusted· ...............................
Time deposits ........................................................ .
United States Government deposits................. .
Interbank deposits .............................................. ..
Balances with domestic banks ...........................
Reserve with Federal Reserve Bank. ........ " ......
Bills payable and rediscounts with Federal
Reserve Bank .................................................... .
1915
1936
...-Demand !;lop'oslts oth~r ~n I,!~rban~' .a~d Uni~ . State~ Goverament.
.
les8 cash Items reported as on hand or In process of coUectlon.
reserves with the Federal Reserve Bank stood at $96,497,000
on October 7, representing an increase of $652,000 over
the four· week period and $34,,222,000 over the year.
Operations 0/
the Federal Reserve Banlc
Seasonal liquidation of member bank in'
debtedness at the Federal Reserve Bank
continued at a steady rate during the past
thirty days. Total member bank borroW'
ings, which amounted to $523,000 on September 15, had
declined to $14,5,000 on October 15. The latter figure COl11pares with a total of $4.65,000 on the same date in 1935.
Outstanding industrial advances declined $60,000 between
September 15 and October 15, and on the latter date they
were $344 ,000 lower than a year earlier. This bank's holdings of United States Government securities totaled $100"
637,000 on October 15, which was $7,067,000 higher than
on September 15, and $24,162,000 greater than on the carre·
sponding date in 1935. The reserve deposits of member
banks rose to a new high level on October 15, the total on
that date being $156,116,000, or $9,985,000 above those on
September 15, and $4,6,770,000 larger than a year ago.
Member bank reserves averaged $151,213,000 during Sep'
tember, which was 57 per cent higher than average required
reserves. The seasonal expansion in the demand for cur'
rency was reflected in a further rise in the circulation of
Federal Reserve noLes. Total circulation amounted to $91,'
028,000 on October 15 as compared with $88,641,000 on
September 15, and $66,760,000 at the middle of October
last year.
CONDITION OF THE FEDERAL RESERVE BANK
(In thousands of doUars)
Oct. IS,
1916
Total cash reserves ......... .............................. ...
Discounts fOI' member banks...............................
Other bills discounted ........................:..................
lndustrlal advances....... .... ...............................
Commitments to make Industrial advances ....
Bills \!ought In the open market............ ....... ..
UnIted States Government securities owned .
AU other Investments...........................................
Total earnlns assets............. ........................:.....
Member bl1nk reserve deposlts .. ............ ....
· Fede~al Reserve notes In actual cIrculation .. , ;
Oct. is.
1935
$164,380
145
5121.722
46 6
1.482
498
87
100.637
1.826
fi98
122
76.47 5
'. D
l.026
78.888
109.846
GG.76U
None
12
102.363
J 56.11 6
None
NOli e
Sept.
IS ,
1916
$169. 222
628
None
1542
'608
87
9S.67~
95.730
146.131
88.6'1)'
MONTHLY BUSINESS REVIEW
Deposits of
Memb er Banks
There is presented a table showing the
demand deposits-adjusted and time deposits of member banks in the Eleventh
Federal Reserve District as of each "call" date from June
30, 1933, to June 30, 1936, inclusive, segregated according
La reserve city and country banks.
DEPOSITS OF MEMBER BANKS
(In thousands of dollars)
Reserve Ci ty Hanks
Cumbined To tnl
5
Debits to
Individual
Accounts
Debits to individual accounts at banks
in eighteen reporting cities in the Eleventh
District reflected a substantial expansion
during the past month. The total for September rose to $791,620,000, which was 11.7 per cent greater
than in August and 29,1 per cent higher than in September
last year. The latter increase was the largest reported for
any month since July, 1935.
Country H. nks ( 2 )
Dem:Uld
Demand
Demand
depo,i ts
Time
deposits
Time
depo, its
Time
J all dates :
odjusted (I) Deposits adjusted (I) Deposits adjusted (I) Depo, its
O~~e23 . 1988 (8) $379.662 $189 ,868 $176,729 $114,801 $202.988 $75,562
50
b ' ,1983 .......... 405 ,974
189,949
181,897
108,733
224,077
81,216
ee. 30, 1988
444 ,206
190,000
194,914
107,497
249,291
82,508
~ar. 6, 1934
489,52'1 198,799
216,647
108,256
272,877
86,648
Ou~e 30, 1934
496,620
197,280
282,911
111,864
262,609
86 ,426
be . 17, 1984 ...... 542 ,021
196,992
246,486
109,410
296,686
86,682
lrl"c. 31, 1984 ........ 651,276
196.066
242,422
112,117
808,854
88,949
Jar. 4, 1986 ........... 672,576
195,056
259,082
111,861
813,544
88,1 96
une 29, 1986 ........ 688,644
N
196.210
276,566
113,4 21
307,088
81,789
b oV. I , 1986 ........... 628,988
194,862
294,456
111,378
884,532
82 ,989
Mec. 31, 193fi ......... 64 2,167
198,495
292,629
111,861
349,538
86,64 4
Jar. 4, 1936 ...... ... 662,216
196,626
800,624
109,285
861,592
87,841
une 30, 1936...... ... 697,486
200,661
827,853
110,966
370,133
89,695
(1) Demand deposit s other than interbank and United States Government,
less cash items in process of collection and, prior to December 31,
1936, less cash items reported on hand but not in process of collection.
(2) Outlying banks in reserve cities which have been authorized to carry
country bank reserves are included with country banks.
(3) Beginning June, 1988, figures relate to licensed banks only.
DEBITS TO INDIVIDUAL ACCOUNTS
(In thousands of dollars)
o
--------------------------------------------------------Ilcceptance
Market
The past month witnessed a further seasonal expansion in the volume of bankers' acceptances executed by accepting
banks in this district and outstanding at the dose of the
Jnonth. The volume on September 30 amounted to $899,508
as compared with $651,384. on August 31 and $912,104, on
October 31, 1935. The largest increase occurred in acceptces based on the domestic shipment and storage of goods,
~ e total of which rose from $319,017 on August 31 to $548,96 on September 30.
h
Sept.
1936
Abilene ........................... .
Austin ............................ .
Beaumont..................... .
Corsicana ...................... ..
Dalla . .. ...................... .... ..
EI Paso .......................... ..
Fort Worth ....................
Galveston. ............. ........ ..
Houston ........................ ..
Port Arthur ................. ..
RoswelL .... :.................. .
San Antonio ................. .
Shreveport.................... ..
Texarkana· .................. ..
Tucson .............................
Tyler............ ................. .
Waco:....... ........... .......... ..
Wichita Falls.............. .. .
TotaL ........ .
8,088
22, 410
20,560
8,998
24 7,229
22,415
78,731
28,787
189,676
7,569
2,798
61 ,190
44,828
8,445
8,675
13,287
\ 0,789
12,755
$791 ,620
$
Sept.
19l5
6,147
17,520
18,412
8,014
186,294
18,781
61,868
20,888
141,229
6,886
2,199
58,719
80,912
6.408
7,1 41
10,687
12,521
12,674
$618,240
$
Pctg. change
over year
+ 57 .1
+27.9
+ 11.7
+82.6
+83.4
+19.3
+19.2
+37.6
+84.3
+28 .6
+27.2
+1 8. 9
+43.4
66•8
21.5
24.4
+26.1
.6
+29.1
i
+
Aug. Pctg. ch.nge
19 36 over month
$
6,969
22,701
20,099
2,847
201,240
21,789
71,864
22,460
176,492
7,701
2,648
59,914
40,148
6,198
8,861
14,099
12,257
12,627
$708,804
+16.1
- 1.8
+ 2.8
+40. 8
+22.9
+ 2.9
+ 8.3
+27.9
+ 8.1
- 1.7
+ 9.8
+ 2.1
+ 10.4
+86 .4
+ 8.8
- 6.1
+28.8
+ 1.0
+11.7
·Includes the figures of two banks In Texarkana, Arkansas, located in
the Eilfhth District.
The savings deposits of 125 reporting
banks in this district, which operate savings departments, increased 0.3 per cent
from August 31 to September 30, and on the latter date were
2.9 per cent larger than a year ago. There was a further
slight increase in the number of savings depositors during
the month.
Savings
Deposits
-----------------------------------------------------------------------------------------------------------------SAVINGS DEPO SITS
Augu,t 31,1936
September 30, 19l5
NUlnber
Amount of Percentage ch:.ngc
Amount of
of re- Number of
Amount of
Number of
Percentage chaneC' Number of
porting
s:lVing!l
savings
&:lvings
over year In
s:lVings
savings
over month in
sav ings
deposit.
savings deposit.
depositors
savings deposi 19
hanks depositors
deposits
dep ositors
deposits
lleaumont ....... . ....... ....... ..... . .....
9,180
1.2
l!
8 ,960
9,100
$ 3,614,484
$ 8,656,71!1
S 8,698,466
.6
ball as
....
26 ,152,087
80 ,612
80 ,716
26.167,741
76,662
26,072,849
u*
+ 4.0
.4
5,727,042
2
18, 265
6,920,876
11,752
+20 .8
13,149
6,888,097
.5
11,226,038
9.6
35,009
86,676
3
36,299
12,805,308
12,281.863
.6
2.5
17,115
J 0,674,663
17,89 1
4
17,400
10,840,38fi
10,768,069
.7
32,296,781
67,0 58
-- 7.6
6 ~ , 8 00
.6
29,828,887
80,010,911
68,107
11"
2,168,821
5,856
6,836
2,814,688
.2
2
5,84 8
2,309,538
+ 6.5
16,467,809
+1 0.0
19,955
18,072,221
18, 11 2,960
17,881
6·
20,170
.2
10,669,017
10,979,86 1
23,668
11,079,240
22,238
28,791
a
.9
+ a.8
- 18.2
9, 643
.7
6,287,080
5,449,665
5,4 12,428
9,863
9,580
3
8,211,711
6,486
8,440,864
6,092
.6
6,61.7
3,422,169
8
6.6
61,796
26 ,791,997
27,460,164
49,663
27,646,779
76·
61,864
.7
341,804
$167,266,682
327,698
$153,178,054
'l·otaL............................
$157,660,185
i l l 841,967
~
+ 2.9
· Only 8 banks in Dallas, 10 in Houston, 6 in San Antonio, and 67 banks in "All others" reported the number of savings depositol's.
September 10,
1
(
(
I~ J6
-
-
~!f.:!;! !jl: ;!;
+
+
+
+
+
t
+
+
:j:
+
,-2:J
------------------------------------------------------------------------------------------------------DISCOUNT RATES CHARGED BY MEMBER BANKS DURING OCTOBER
Prevoiling Rate.
~ate
charged customers on prime commercial paper such as is now elilfible for
~at rediScount under the Federal Reserve Act. ................................................................ .
nate chat·ged on loans to other ban ks secured by bills receivable ... .. ............ _... ...
". on loana secul'ed by prime stock exchan ge a'· oth er current coll ateral (not
' ncluding loans p laccd In other markets through corl'espondent bank. ):
Demand ....... ........................ ...................................... ....................................................... ..
Hat
'rime ................ ............................. ...................................... ........ ................... ........... ...... ...
nat e charged on commodity paper secured by warehou se receipts, ctc........ .. ........ ..
e on cattle loan s .. .... _................ ................ ........................... .. ....... ....... ....... _..................... .
Dall ..
EI P.,o
Port Worth
3-8
5
6-6
3-6
1),6- 6
4- 6
4
4-8
2-8
61,6-8
6-8
6-8
6-8
6-8
4-10
4-10
6-8
6-8
Houston
4-7
5-6
8-7
3-7
2-7
7-10
San Antonio
8-7
6
Wace
2-6
5
6
6
5-7
6-8
7-8
5- 8
6
S
----------------------~~~----------------~~----------~--~~--~~--~~------~~~--------~----~--
MONTHLY BUSINESS REVIEW
6
INDUSTRY
The receipts of cottonseed and the production of cottonseed products at both
Texas and all United States mills reflected a substantial increase over the previous month, and
operations were on a considerably larger scale than in September last year. The movement of cottonseed to the mills
has been at a faster rate during the current season than was
the case a year ago, as is evidenced by the fact that ginnings
prior to October 1 this year were 43 per cent larger, while
mill receipts of cottonseed during the two months of the
current season were 58 per cent above those in that period
last year. While stocks of cottonseed products on hand at
mills increased seasonally during September, shipments of
products from the mills were somewhat larger than a year
ago. At the end of September mill stocks of crude oil and
linters were moderately larger than a year ago, but stocks
of hulls and cake and meal were substantially smaller.
Cottonseed
Products
STATISTICS ON COTTONSEED AND COTTONSEED PRODUCTS
Texas
August 1 to September 30
This Season
Lalt scaSon
204,448
128,605
1,511,724
695.271
959,666
580,645
98.250
85.779,701
838,379
206.042,772
468.596
178,211,994
60 .017
34,161
810.947
180,614
258,8S6
168,179
24,808
163.887
122,081
9,669,820
37.466
32.610
21,884
48,794.470
126,014
70,604
98,951
40,878,094
194,210
85,344
97,068
COTTON MOVEMENTS THROUGH 'l'HE PORT OF GALVESTON
(Bales)
Sept.
1936
Recelpta. .............................. ..
Exports .................. ,...............
Stocks, September 80 ..
876,082
152,507
Augus t I to September J 0
Th is season
Last seUon
Sell t.
1935
254,716
. 42,476
412,895
199 224
575:866
. 386,180
61,299
499,484
COTTON-GALVESTON STOCK STATEMENT
(Bales)
Sept. 30,
1936
Sept. 30,
1935
For Great Britain......................................................................
1,600
For France .............................................................................. ..
2,000
For other foreign ports .......................................................... .. 19,200
For coastwise ports .............. ................................................. ..
1,500
In compresses and depots.... ........................... .. ..... ...... . 551,666
TotaL ............................................................. ..... ...... .. 575,866
8,000
1.70 0
19,70 0
1,000
~
499,484
COTTON MOVEMENTS THROUGH THE PORT OF HOUS'l'ON
(Bales)
Au gus t I to September 30
Sept.
Sept.
Textile
Milling
Cotton consumed by domestic mills rose
to 629,727 bales in September, which
compares with 574,289 bales in August
and 4,50,64.7 bales in September last year. The increase of
9.7 per cent over August was greater than seasonal, and
there was a gain of 39.7 per cent as compared with the same
month of 1935. Mill stocks of raw cotton, after showing
the usual recession during the earlier months of the year,
rose from the low point of 752,219 bales on August 31 to
84,8,734 bales on September 30. Stocks on the latter date
were 17.3 per cent higher than on the corresponding date a
year earlier.
COTTON CONSUMED AND ON HAND
(Bales)
Sept.
Sept.
1936
1935
Cotton-growing states:
Cotton consumed..............................
527,168
Cotton on hand Sept. 80 InConsuming establishments .........
Public storage and compresses ..
United States:
Cotton consumed..............................
629,727
Cotton on ha nd Sept. 30 inConsuming establishments ........
Public storage and compresses..
Source: Bureau of Census.
Cotton
Movements
A sharp seasonal pick-up in the exports of cotton from
all United States ports was registered during September.
The month's total amounted to 569,624. bales as compared
with 182,487 bales in August and 4,86,764. bales in September,1935. September exports to France, German y, and Japan
reflected substantial increases over th e same month of last
year. Foreign shipments from all ports during the tWO
months of the current season were 3.3 per cent larger than
in the corresponding period a year ago.
United States
Augus t 1 to September 30
Thil ICilon Last scalon
Cottonseed received at
mills (tons) .......................
816.695
Cottonseed crushed (tons) .
182.887
Cottonseed on hand
Sept. 80 (tons) ................ ,
148,734
Crude oil produced (Ibs.) ... 61,283,901
Cake and meal produced
(tone) .................................
84,971
Hulls produced (tons) ........
49,071
Lintel'S produced
(running bales) ...............
39,377
~to ck s on hand Sept. 30:
Crude oil (pounds) ..............
14,243,928
Cake and meal (tons) .........
36,M75
Hulls (tons) ..........................
27.223
Linters (running bales) ...
26,895
Source: Bureau of Censua,
Exports of cotton from these ports also evidenced substan·
tial gains from August to September, and at Galveston they
were more than three times greater than in September, 1935.
The combined stocks on hand at the two ports increased considerably during September and at the end of the month
were slightly larger than a year ago.
379,850
August 1 to September 30
Thi. season Last sea.on
722,749
702,811
6,771,009
460,647
1,007,704
582,013
7.025,622
1,204,016
868,972
848,784
6,805,999
723,427
7,142,778
1936
Receipts...................... ... .. ....... ., 247,429
Exports ............ ....... ....... ........ 110.870
Stocke, September 80 ... ..
This senson
1935
17 5,461
129,608
Last sC:I!on
283.917
159,794
2aG, 880
224,8 20
176,811
356.260
SEASON'S RECEIPTS, EXPORTS, AND STOCKS OF COTTON AT ALL
UNITED STA'fES PORTS
(Bales)
Augus t I to September 30
This season
Last lea50"
Receipts .................. .............................................................. ..
Exports:
United Kingdom.................................... ............... ...........
France............................ . .....................................................
Italy.......................................................................................
Germany ,............................................................... ..............
Other Europe....................................... .............................
Japan....................................................................................
All other countries............... ..... ...... ......................... .....
rotal exports........ ....................................................................
Stocks held at all United States ports, Sept. SO
.... ''''
1,690,528
1.529,402
172 ,6 58
143.889
27 ,020
101.755
85,644
188,367
83,878
752,111
1,993,828
162,6 87
69,979
68,948
98,107
121.862
191,6 16
6
~
728,248
1,874,240
SPOT COTTON PRICES
Middling Basis
(Cents per pound)
September, 193 6
High
Low
New york .................................................... ...... ..
New Orleans ......................... ......................... ..... .
Dallas ........... ,...........................................................
Houston ...................................................................
Galveston ............................................................... ..
12.68
12.56
12.09
12. 5J.
12.51
11.87
11.83
1l.42
11.80
11.85
Oct. IS,
1936
12. 41
12. 88
11.81
12.10
12.11
-----------------------------------------------------
Reflecting the rapid movement of this
The September production of crude oil
year's crop, the September receipts of Petroleum
in the Eleventh District, though smaller
cotton at the ports of Houston and Galveston showed a large seasonal increase over the previous thaI! in August, remained at a high level. The month's out'
month and· exceeded .those of a year·.ago by a wide margin,. put was 39,529,350 barrels, as compared with 4.1,117,05O
-~---------------------------~~~~~~====--------------------~
MONTHLY BUSINESS REVIEW
7
---------------------~~----~----~--~~~----~~-------
barrels in AugusL, and 33,527,4.00 barrels in September, 1935.
Daily average production in September amounted to 1,317,64.5 barrels, which was 8,711 barrels smaller than in August
but 200,065 barrels higher than a year ago. The completion
of new wells during the four weeks ended September 26 was
at about the same rate as in the previous five weeks, but
lhere was a substantial decline in the initial production of
new producers completed.
ORUDE OIL PRICES
(Price per barrel)
Oct. 9,
1936
Oct. II,
19l5
Texas Coastal (84 gravity and above} ..................................
$1.2.2
$1.12
North Texas (40 gravity and above) .....................................
1.08
1.08
North Louisiana (40 gravity and above} .............................
1.10
1.08
(011 statistics complied by The 011 Weekly, Houston, Texas)
A further expansion in the production of
Portland cement at Texas mills was regProduction from Texas fields averaged 1,157,593 barrels istered during September, The month's output rose to 595,000
daily during September, which was 8,971 barrels smaller barrels, reflecting an increase of 2.4, per cent over August,
~han the daily rate in August. The daily average production . and a gain of 129.7 per cent as compared with September,
In the East Texas field rose 5,218 barrels in September and
1935. While shipments from these mills declined 11.6 per
Was at the highest level reached since May. There was a cent between August and ' September, they showed an exd:ciine in daily average production at all other Texas fields pansion of 75.1 per cent over those in the corresponding
'':lth the largest reductions occurring in the West Texas and month last year. As production was maintained at a higher
1 exas Coastal fields. The daily average output for New level Lhan shipments, stocks on hand increased further and
Mexico rose to a new high level in September, but there was the total on September 30 was 14,.0 per . cent higher than a
a moderate decline in north Louisiana.
year earlier. For the first nine months of the year, however,
shipments have exceeded production by a small margin.
OIL PRODUCTION
(Barrels)
Incrc:lse or decrease
over August, 1916
Total
Daily AVB'
~orth Texaa............ ........ .
~~1:~!£i~:::::::::::: : : : : : .: :
exas ConstaL.......... .... ..
N Total Texas ................... ..
New hMexlco ........................ .
art Louisiana ........... .. .
Total District ....... ......... .
September, 1936
Total
Daily Avg.
8,665,100
122,170
142,250
5,966,800
198,898
450,450
14,923,800
497,460
885,700
2,667,460
85,582
110,500
258,4 88
7,604,650
396,800
a·1, 727,800
1,157,59:!
- 1,430,700
2.369,850
46,500
78,995
2,481,700
81,067
105,500
a9 ,529,860
1,317,646
- 1,587,700
+
+
-
648
8,115
5,218
803
4,628
8,971
1.048
788
8,71L
E est Texas.... ................
S~~~hTf"a8 .................
Completiol1! Producers
213
178
~~~
129
144
18H
Cali Wells
11
1
lniti ui
Production
Failure.
73
:13
16
40,01 5
114,694
~g~:m
'i'exas C~~~~~C::·.:·.:::·.:·.·.·. :::
I 09
~~~
~
~~
80,528
N Total Texas ..............
990
750
24
ill
987 ,1 76
NewhMexico .. .... .......
44
40
1
3
31,075
• art Loui.iana..............
86
22
10
4
26,488
"~ollt. tolnl8, Di.tl'ict .. 1,070
Ri7
35
ill
994,689
Augu.t total., District 1,88~
1,061
51
270
1,631,834
'Septembel' figures represent foul' weeks ended S"ptember 26, 1936.
• • A\,gust figures represent five weeks ended August 29, 1986.
-
Sept.
1936
Percentage
change from
Sept.
Aug.
19l5
1936
+129.7
+ 2.4
76.1
- 11.6
Production at 'rexlls mills .... 59ii
Shipments from Texas mills .. 460
+
Stocks ut end of month at
Texus mills ..... ................... 782
+ 14.0
+24.7
Source: United Stlltes Burellu at Mines.
January I
through Percentage
Sept. 30,
chang.
1936
over ye ..
4,852
+57.7
4,868
+57.1
A seasonal decline in the valuation of
building permits issued at fourteen principal cities in this district was in evidence during September. The total for the month amounted to $3,883,380, which
was 16.7 per cent smaller than the aggregate for August, but
was 60.1 per cent larger than the total in September, 1935.
There were seven cities which reported increases over the
previous month and twelve cities which showed gains over
a year ago. The valuation of permits issued at reporting
cities during the first nine months of the year reflected a gain
of 96.9 per cent over that during the same period last year.
BUILDING PERMITS
Amarillo
...................
~~~~~~:L ::::::::::::::::::::
us
balr
PRODuc'rJON, SHIPMENTS, AND ' STOCKS OF PORTLAND CEMENT
(In thousands at barrels)
Building
SEPTEMBER DRILLING RESULTS
~orth Texas.... ...............
Cement
Christi ........... ..
J!!tW:{.::::··::··:·······::·.·:::·. ·:·
.
Galvesto th .................. .
~O~ton.~ :::::::::::::::::::::::
S~ ;rthur ............. .
Shn ntonio.......... .
~f~·~~;:;i::: : : : : : : :
September, 19J6
No.
Valu:l1ion
39
59,559
10,1
576,881
180
61,637
11:1
212,805
413
466,443
68
56,162
2811
414.949
115
166,924
410
1.077.694
16t
69,519
232
258,593
186
341,176
8S
83,708
15
37,945
Total.. .. __ ... .. 2,802
$3,888,380
September, 19J5
No.
Valuation
27
22,721
150
629,818
109
55,098
48
40,280
377
a02,019
31
18,585
98
324,000
102
46 ,974
262
554,150
27,957
108
218
184,783
107
96,427
28
121,567
8
~
1,653 $2,426,034
Pctg. change
valuation
over year
+162.1
8.8
+ 11.9
-1- 427.7
54.4
+ 202.1
28.1
+255.4
+ 94. 5
+148.7
39.9
+263. 8
- 81.1
+
+
+
•
+
60.1
August, 1936
No.
Valuation
29 $ 69,141
186
275,887
121
86,820
187
818,572
479
484 ,079
56
46,074
172
816,686
106
67,166
400
1,007,748
177
86,140
283
517,368
122
872,578
87
46,616
82 ~
2,837 $4,661,117
Pctg. change
v:lluntlon
over month
- 13.9
+ 109.1
+ 69.7
- 74.1
3.6
+ 21.9
- 49.1
+148.5
6.9
- 19.8
- 60.0
8 .4
+ 79.6
+112 .7
+
-
16.7
No.
277
1,465
1.059
985
4,470
566
1,545
981
3,406
1,224
2,212
1,162
329
166
19,847
January I through September 30
1936
19H
Valuation
No.
Valuation
511 ,477
259
207,254
3,698,705
1,386
4,587,121
864,423
1,010
441,129
2,124,874
481
397,320
2,660,834
3,570
8,284,208
917,647
381
705,400
1,018
2,471,630
6,964,089
969
528 ,816
1,848,715
2,810
4,899,896
13,618,045
474,091
733,397
698
3,342,053
3,541,988
5,459
1,160
946,476
1,886,205
470,875
260
551,846
258,002
225
321,126
$44,789,068
19,161
$22 ,747,524
Pcts. chtlnge
valutltion
over period
+146 .8
- 18.6
96.0
+ 484.7
+209 .6
- 23.1
+181.4
+156.8
+175.9
+ 64 .7
5.6
+ 99.8
17.2
+ 24.5
+
+
+ 96.9
°Increuse over one thousand per cent.
(
~------------------------------------------------
8
MONTHLY BUSINESS REVIEW
SUMMARY OF NATIONAL BUSINESS CONDITIONS
(Complied by the Board of Governors of the Federal Rescrvc System)
Volume of industrial production was maintained in Sep.
tember and employment at factories increased seasonally.
Distribution of commodities to consumers increased. Com·
mercial loans of city banks showed further growth.
PRODUCTION AND EMPLOYMENT
Industrial output in September, as measured by the
Board's seasonally adjusted index, was 109 per cent of the
1923-1925 average, approximately the level of the two pre·
ceding months. Output of steel was about the same as in
August, and in the first three weeks of October the rate of
activity rose to a higher level than at any time since 1930.
Automobile production showed a sharp seasonal decline
in September and a considerable seasonal advance in the
first three weeks of October. Production of lumber and
cement showed a further rise, and increases in activity were
also reported at meat·packing establishments and at cotton
and silk textile factories. At woolen mills there was little
change in production although an increase is usual in Sep.
tember. Output of coal increased more than seasonally, and
crude petroleum production continued in large volume.
Factory employment increased seasonally in September
and payrolls were maintained at the August level. The num·
ber employed in most industries producing durable goods
continued to increase, while at automobile factories there
was a seasonal decline. Employment decreased at woolen
mills and showed a smaller increase than is usual at this
season at cotton mills and at establishments producing
women's clothing.
Value of construction contracts awarded, as reported by
the F. W. Dodge Corporation, declined somewhat further
in September from the relatively high level reached in the
middle of the year. There was a decrease in awards for
residential building, reflecting chiefly a smaller volume of
contracts for apartment construction which in August had
included several large publicly.financed projects. Awards
for non·residential work declined, partly as a result of a
reduction in contracts for public works and utilities which
have been in large volume during rece1,t months.
AGRICULTURE
Crop conditions improved somewhat from September 1
to October 1, according to the Department of Agriculture,
but estimates for corn and many other crops are still con·
siderably below the harvests of last year. The cotton crop
is estimated at 11,600,000 bales, an increase of 500,000
bales from the estimate made a month earlier and of 1,000"
000 bales from the 1935 crop. Total cash farm income, in·
cluding all Government payments, is estimated by the De·
partment of Agriculture at $7,850,000,000 for the calendar
year 1936 as compared with $7,090,000,000 in 1935.
DISTRIBUTION
Distribution of commodities to consumers increased by
more than the usual amount in September, following a less
than seasonal rise between July and August. Sales at depart·
ment and variety stores and by mail·order houses serving
rural areas were in larger volume in September. Vohuu e
of freight carried by railroads increased, reflecting larger
shipments of coal, ore, and miscellaneous freight and a
decline in loadings of grain.
COMMODITY PRICES
The general level of wholesale commodity prices has
shown little change in the last two months. From the middle
of September to the third week in October sugar and butter
prices declined, and there were decreases also in prices of
hogs and pork, as is usual at this season. Price advances
were reported for leather and coke, and higher prices for
some finished and semifinished steel products became effec'
tive on October 1.
BANK CREDIT
Loans of reporting member banks in leading cities, other
than loans on securities, continued to increase in September
and the first half of October. On October 14, the volume of
these loans was more than $400,000,000 larger than on July
29. About half of this increase was at New York City banks
and the remainder principally at banks in western an?
southern cities. Holdings of United States Government obb·
gations have declined in recent weeks ·at New York City
banks and have increased somewhat at other banks. Dc'
posits of reportiag banks have continued to increase.
Excess reserves of member banks increased by $410,00 0,.
000 in the five weeks ending October 21, reflecting a redu c.
tion of $300,000,000 in Treasury holdings of cash and bal·
ances at the Reserve banks and an increase of $250,000,000
in monetary gold stock, the effects of which were partially
offset by a seasonal increase in money in circulation and 8
further growth in required reserves.
@FedFRASER