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M nthly Business Review
OF
THE
FEDERAL
Volume 23, No.9
BANK
RESERVE
Dallas, Texas, November 1,1938
DISTRICT SUMMARY
Consumer demand at department stores in the Eleventh
District was retarded by unseasonably high temperatures
during September and the first half of October, but distribution of merchandise through wholesale channels increased
more than seasonally from the low level prevailing in the
preceding two months. The production of petroleum declined
sharply, reflecting the resumption of the five-day production
week in Texas at the beginning of September. A general reduction in posted prices of crude oil was effected during the
first half of October. Construction activity declined seasonally
from August to September, but awards were considerably
above those of a year ago. After declining sharply in August,
the production of Portland cement in Texas rose in September to about the average level prevailing during the first
seven months of the year. The demand for loans from weekly
reporting member banks in the distriot's leading cities increased considerably during the six weeks ended October 12.
BUSINESS
The unseasonably warm weather prevailing in September
had a retarding influence on department store trade in principal cities of the Eleventh District. Sales increased considerably less than usual from August to September, and as a
result this bank's adjusted index, which had shown an upward trend in the preceding four months, declined to 105
per cent of the 1923-1925 average. This figure compares with
108 per cent in August and no per cent in September last
year. The actual dollar volume of sales was 34 per cent
greater than in August but 5 per cent smaller than in September, 1937. Preliminary reports indicate that business during the first half of October was considerably smaller than
a year ago.
The index of department store stocks showed a further increase in September, as inventories were increased more than
seasonally between August 31 and September 30. On the
latter date, however, the dollar value of stocks was still 6
per cent smaller than a year ago. The rate of collections on
open accounts outstanding at the beginning of the month
declined to the lowest level in several years.
The demand for merchandise at wholesale in this district
increased more than seasonally in September, reflecting in
part frequent reorders and delayed buying by retailers. Although business remained considerably below that of a year
ago, the comparison was slightly more favorable than in
either of the two preceding months. The combined sales of
76 firms in eight lines of U'ade were 9 per cent greater than
in August and the 10 per cent decrease from September,
1937, compares with declines of nand 12 per cent, respectively, for similar comparisons in July and August. Sales
of drugs, hardware, groceries, and machinery and equipment showed average or above average increases from
August to September, whereas the demand for dry goods
declined considerably more than is usual at this time. Sales
of tobacco and tobacco products continued larger than a
year ago. Collections increased seasonally during the month
and in relation to accounts outstanding at the beginning of
the month they were at the highest level recorded thus far
this year.
OF
DALLAS
'l:'his, cop~ is relea sed for pubhca tlon In afternoon papers-
October 29
Liabilities of commercial failures in this district increased
slightly from August to September, but they were about onefourth smaller than a year ago. Dun and Bradstreet, Incorporated, reported 16 insolvencies during the month with liabilities totaling $203,000.
AGRICULTURE
Weather conditions prevailing in the Eleventh District
since the early part of September have been favorable for
the maturation and rapid harvesting of crops. On the other
hand, the lack of moisture, together with the unusually high
temperatures for this season, caused a deterioration in some
crops. According to the October 1 report of the Department
of Agriculture, the production estimates were lower than a
month earlier for tame hay, rice, peanuts, sweet potatoes and
pecans, but estimates for other crops showed little change
with per acre yield and production for most crops exceeding
the average. Preparation of land for the seeding of small
grains has made rapid progress, and seeding operations are
well under way in northwest Texas, where extensive rains
fell in the first half of October, supplementing moisture supplies obtained early in September. Early sown grains are up
to a good stand and are already furnishing some pasturage.
In other areas, seeding operations have been handicapped by
the lack of moisture, but some fields are being dry-planted
in which instances rain is needed for proper germination.
The October 1 estimate of cotton production in Texas
remained unchanged from the forecast of 3,200,000 hales
a month earlier and compares with a harvest of 5,154,000 bales in 1937. In all districts of the state the indicated production is substantially below that of a year ago
and is smaller than the ten-year average production in all
districts except the northwest High Plains and South Texas.
In Louisiana the production forecast was increased 53,000
bales, but this gain was more than offset by a reduction in
the estimated production for Oklahoma. The indicated production in the United States was raised 387,000 bales to a
total of 12,212,000 bales. Picking and ginning made rapid
progress during September throughout the cotton growing
territory. Ginnings in Texas prior to October 1 totaled 1,909,000 bales, which represents nearly two-thirds of the
indicated production.
Weather conditions generally have been favorable for
citrus fruits in Texas, but rains would be beneficial to the
REPORTING MEMBER BANKS IN LEADING CITIES
MILL10NS
eoo
500
or
DOLLARS
ELEVENTH fEDERAL RESERVE DISTRICT
MilLIONS OF OOLLA~S
eoo
f--+-----I-
--I---~!>OO
r--r---=---r------+-----~----~~--~400
--~~------~----~---~~
~---~200
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
MONTHLY BUSINESS REVIEW
2
crops in some areas. The fruit has sized well and the trees
are in good condition. The initial estimate of the current
season placed the production of grapefruit at 15,000,000
boxes, which is 27 per cent larger than the previous record
crop of 11,800,000 boxes produced last year. The orange
crop, which is estimated at 2,000,000 boxes, is more than
one·third larger than in the preceding season.
Heavy rains during the past month in New Mexico, in
west and northwest Texas and in portions of the Coastal
Plains section of Texas improved range conditions in those
areas. Elsewhere in the Eleventh District, ranges deteriorated as a result of the hot, dry weather prevailing during
most of the period, and widespread rains are needed to insure winter pasturage. Despite this deterioration, ranges generally are in about average condition for this season of the
year and are better than a year ago. In practically all sections of the district ranges are still furnishing pasturage and
most areas are harvesting good feed crops which will furnish
supplemental feeding during the winter. Cattle and sheep
continued in better than average flesh. According to the
Department of Agriculture, marketings of cattle during Sep.
tember were fairly liberal and local demand was good, but
the September sales of sheep and lambs were rather slow.
Receipts of cattle and calves at the FOIt Worth market
during September were considerably smaller than in the
corresponding month last 'year, whereas arrivals of sheep
were much larger. Livestock prices followed an irregular
downward trend during the three weeks ended October 8;
in the subsequent week, the market for cattle, calves and
sheep strengthened somewhat, but hog prices continued
downward, declining to the lowest level since last May.
Cash income from the marketings of principal farm prod.
ucts in states attached to the Eleventh District failed to show
the usual seasonal increase from July to August and was 22
per cent lower than in August last year. Although receipts
from the sale of livestock and livestock products were about
one-fourth larger than in August, 1937, this gain was more
than counterbalanced by a decline of 44 per cent in receipts
from the sale of crops. The principal cause of the decline in
WHOLESALE AND RETAIL TRADE STATISTICS
,---- - Percentnge ohange in : ..- --- ____Ratio Sept. collections
Net Sales
Stocks'
to accounts outstandr - - " - - - - - - -- v - - - - - - - - - ,
ing Sept. 1
Jan. 1 to
Sept., 1038 from " . - - - - -____
Sept., 1938 from
Sept., Aug., Sept. 30, 1038, Sept., Au~ .,
Install1037
1938
from 1037
1037
1038 Regular
ment
Department stores:
- 6.1 + 11 .6
Totaillth Dist .. - 5.2 +33.5
35.0
- 1. 6
13.8
Dall............ - 10 .3 +33.2
- 3.7 + 12.1
33 .6
- 3.3
15 .8
Fort Worth .. .... + 5 .5 +26.1
4.7
0.9
+ .8 -- 9.1 +26.5 83.9
6.4
35. 0
Houston . .. .... .. + .8 +48.8
+ 1.7
.4 + 10 .5
SanAntonio ..... - 6.7 + 14 .7
.2
37.8
iiiJ
- 11 .7 + 0.5
36.7
- 4.3
Otheroities . .... . - 6.1 +48. 1
16 .8
Inde{lCndent stores: t
Amona ......... - 16.2 + 5.3
Oklahom~ ....... - 11 .8 +10 .5
New MeXIco .... . -18.0 - 0.8
ToxlIS ........... - 11 .3 + 11.5
Wholesale trade:t
Machinery equipment & supplies
24 .4
(exc'pt eleetrlca!). -33.7 +10.4
-37.3
':':'i4:iJ ':":.'3:2 47 .6
Drygoods . .. ..... - 17.4 - 17 .2
- 15.8
- 0.4 + 5.4 104 .8
Groceries ......... - 8. 4 + 11.1
- 6.9
Drugs ............ - 5.7 + 16 .5
+.5
- 4.8 + 2.3
73.0
- 10.3 - 4.1
Hardware ........ - 7.9 +11.4
- 12 .2
50 .7
Electrical supplies . -26.4 - 7.2
- 17 .7
Tobacco & prod's .. + 3 .6 + 2.2
+ 0.4
105 :4
Surgical equip't .. .
0.0 + 6.3
+ 5.1
43 .8
·Steaks at close of month . tCompiled by United States Department of Commeroe.
+
INDEXES OF DEPARTMENT STORE SALES AND STOCKS
(1023·25 avernge=I00)
With seasonal adjustment
Without sellSonal adjustment
,---~------v
Sales- Sept.
1038
19a7
Total Eleventh Diat .. 105.1 110.0
D.III1S . ...... ..... .. 116 .0 128 .5
Fort Worth ...... . .. . 116 .0 108 .6
Houston .. .... . .... . . 130 .3 138 .1
99 .7
San Antonio .. . .... . . 02 .4
Stoeks- Sept.
1938
1937
64.5
67.2
67 .8
70.4
57 .2
62 .0
43 .6
40 .8
56 .1
56 .7
Sales- Sept.
1088
1987
116.7 122 . 1
123 .6 136 .2
112 .5 105 .3
137.7 184.4
94.2 101.7
Stoeks1938
70 .9
73.0
03 .5
48.4
61.1
----
Sept.
1037
73.0
76 .7
60 .8
45 .3
61.8
cash income from the sale of crops was the smaller market·
ings of cotton combined with the lower prices. Ginnings of
cotton were sharply lower than in August last year and a
larger proportion of the cotton ginned was withheld from
the market, awaiting placement in the Government loan.
Government payments to farmers in July and August this
year aggregated $9,700,000, which compares with payments
of only $1,582,000 in the same period last year.
FINANCE
The total earning assets of the Federal Reserve Bank of
Dallas rose $9,039,000 between September 15 and October
15, reflecting an increase in holdings of United States Gov'
ernment securities which was brought about by a realloca·
tion of the System's open market holdings among the several
Federal Reserve banks. Reserves of member banks at the
Federal Reserve Bank of Dallas increased by about $10,.
000,000 in the thirty days ended October 15, but the total on
that date was $11,000,000 lower than a year earlier. Excess
reserves which had declined in September rose about $4,.
000,000 in the first half of October to the level that had
obtained in the first half of August. The circulation of Fed·
eral Reserve notes reflected a further seasonal increase of
$2,200,000 between September 15 and October 15, but con·
tinued $12,300,000 smaller than a year ago.
In the four weeks ended October 12 total loans and invest·
ments of weekly reporting member banks in this district in·
creased $17,248,000 continuing the steady expansion in evi·
dence since early in June. The increase in the past five and
one·half months has amounted to about $4,3,000,000, bring·
ing the total on October 12 to $516,662,000, which is ap'
proximately $3,900,000 higher than on the corresponding
date last year and only about $6,500,000 under the all·time
high level established toward the end of 1936. These banks
have been adding to their investments steadily since the end
of April, but the expansion in loans occurred mostly after
the first of September. In the six weeks ended October 12,
total loans rose by about $14,000,000, the increase being due
chiefly to the expansion in loans for commercial, industrial
and agricultural purposes. This increase, which was widely
distributed among reporting banks, was slightly larger than
CROP PRODUCTION
(In thousands of units)
r - - - - TexllS - - - v - - Elevonth Distriet--..
Estimated
Estimated
Crop
Unit
1038
1037
1938
1037
Cotton. . . .. .. . . ... .. . .. .
Bales
3,200
5,154
3,956
6,320
COrll. ...... .. .. .. .. ... .. Bushels
82,740
72,048
08,343
86,945.
Wheat (all).. .. .. ...... .. Bushels
35,397
41,690
36,465
42,912
Oats. . . . . . . . . . . . . . . • . . . . Buseels
34,875
30,432
37,510
83,087
Barley.. .. .. .. .. .. . . .. .. Bushel.
2,224
1,766
6,522'
4,541"
Rice. .. . . . . .. . . . . . . .. . . . BushCIs
13,COO
12,250
13,000t
12,250t
Grain sorghums....... . .. Bushels
54,777
52,336
74,177"
71,758"
Tamo hay.. .. .. . .. ... .. .
Tons
981
831
1,361
1,211
Pcanuts...... ...... . .... Pounds
120,000
100,760
Ib4,700t
115,7B5t
Irish potatoes .. ..... . ... , Bushels
2,050
3,456
3,765
4,268
Swoot potatoes . . " . .... . . Bushels
4,500
3,744
12,744t
11,3641
Pecans .. , .. . ...... ,... .. Pounds
18,711
27,000
25,795t
40,000t
Boxes
15,r00
11,800
15.00Ct
11,800 t
Grapefruit .. " . . . . . . .. . . .
Oranges. . . . ... ...... ....
Box,,"
2,000
1,400
2,000t
1,400
'Oklahoma, TexlIS, New Mexieo and Arizona. tTexas only. tLouisiana, Oklahoma and
Texas.
SOURCE: United States Department of Agrieulture. Data for Eleventh District derivod
from estimates by states.
CASH FARM INCOME FROM SALE OF PRlNOIPAL FARM PRODUCTS AND
GOVERNMENT BENEFIT PAYMENTS
(In thousands of dollars)
,..----August, 1038- - - - - v - - - - - - Total receiptst ~-- --..
Reoeipts from:
Jan. 1 to Aug. 31
____ Governm't August
August
- --..
Crops Livestock payments' 19S8
1037
1938
1937
Arizona . .... . . $ 560
5 1,166
$
53
$ 1,710
$ 1,813
S 28,746 S 24,141
Louisiana......
3,026
1,204
5,570
4,320
5, 140
17,289
50,342
New Mexico.. .
541
1,529
211
2,070
2,468
10,820
19,719
Oklahoma. ....
3,762
8,018
1,550
11,780
18,433
106,354
115,510
TexllS. .... .... 20,644
18,471
2,301
30,115
47,714 _ 265,022 ~~
'fotal ......... $28,583
$30,468
$ 0,700
550,001
S75,577
$465,140 $472,2 14
"Government payments during July and August, 1088.
t Data for August exclude tOovernment payments.
SOURCE: United Stotes Department of Agrioulture.
MONTHLY BUSINESS REVIEW
that which occurred in the same period last year. Although
total loans on October 12 were $6,200,000 lower than a
year earlier, commercial, industrial and agricultural loans
were $1,400,000 higher.
Total deposits (excluding interbank deposits) at reporting
banks showed a continuation of the upward trend in evidence since May, 1937, and the record total of $573,314,000
on October 12 was $29,800,000 greater than a year ago. All
classes of deposits contributed to the increase over the past
eighteen months, but the rise between September 14 and
October 12 resulted from an increase in United States Government deposits following the September 15 Treasury financing. Interbank deposits showed a further sharp increase
during the four weeks ended October 12, and on that date
they were at the highest level since December, 1936.
Gross deposits at all member banks in the Eleventh District have been increasing seasonally during the past four
months, the daily average in September being $1,335,189,000
as compared with an average of $1,292,761,000 in May. Although the expansion during the period was smaller than
that in the same period of 1937, the September average was
slightly above the previous high level reached last January.
As compared with September, 1937, the average was $36,700,000 higher, representing increases of $22,600,000 in
gross demand deposits and $14,100,000 in time deposits.
INDUSTRY
Building activity in the Eleventh District declined sharply
in September from the relatively high level prevailing during the two preceding months. Nevertheless, the recession
from August to September was largely seasonal and the
total value of construction contracts awarded exceeded that
in September, 1937, by 24 per cent. The decline from the
preceding month was due chiefly to reductions in residential
and non-residential building. Although the value of awards
for non-residential building was small in comparison with
that for other months of the current year, residential construction continued in heavy volume, being more than twothirds greater than a year ago and larger than in any month
thus far this year except August. The aggregate value of
contraots awarded during the first nine months of 1938 was
17 per cent greater than in the corresponding period last
year.
The value of building permits issued at fourteen principal
cities in this district during September was 14 per cent
smaller than in either the preceding month or the corresponding month last year. The decline from August to September, however, was less than ordinarily occurs at this
time, and the reduction from September, 1937, was accounted
for by an exceptionally large decline at Galveston, Texas_
The resumption of the five-day production week in Texas
at the beginning of September resulted in a sharp decline in
the production of petroleum in the Eleventh District. ~he
output during the month averaged 1,4,20,292 barrels dally,
which was 10 per cent lower than the daily average in
August, and 16 per cent under that in September last year.
Although the daily average output in the first three weeks of
October was slightly higher than the production rate in the
preceding month, it was about 13 per cent below the rate in
October last year. In the territory outside the Eleventh District, daily average production showed a furthe.r in~rease
during September with the result that the dechne In the
physical production in the United States was smaller than
in this district. Refinery operations in the United States, as
reflected by crude oil runs to stills, declined moderately
from August to September.
3
Stocks of crude oil and gasoline declined further during
the month, while stocks of gas and fuel oil continued to increase. As compared with a year ago, supplies of crude oil
on October 1 were 9 per cent lower but those of gasoline
and gas and fuel oil were higher by 5 and 30 per cent,
respectively.
Drilling operations in this district declined in September to the lowest level during the current year. Completions
during the four weeks ended September 24, averaged 34•6
.
wells daily as compared with 36.4. wells in the preceding
four-week period and 4,7.9 wells in the corresponding period
last year. The number of rigs in operation has shown a
CONDITION OF THE FE DERAL RThSJi,RVE BANK
(In thousands of dollars)
0 0t. 15,
Oct.15,
1038
1937
Total cas, reserves .... . ... . ..... . ... . ..... . ..... . $215,607
$203,317
Discounts for member banks ...... ... . . ......... . . .
281
535
Industrial advances ....... . ....... .. ... . ...... . .. .
819
1,143
Bills bought in the open market .... . ... . . .. ....... .
16
79
United States Government securities .. . . . . . .. . .... • .
04,258
08,631
Total earning nssot.q. .. . .......... , .... . . , ...... . .
95,377
100,301
Member bank reserve deposits .. " ... .. . . ... . ..... .
177,028
188,322
Federal Reserve no tes in actual circulation ......... .
70, 662
01,927
Commitmonts to make industrial advanees ... ..... . .
51
260
Sept. 15,
1938
$206,786
529
830
16
84,063
86,338
167,287
77,477
51
CONDITION STATISTICS OF MThMBER BA NKS I N LEADING CITIES
(fn thollsand. of dollars)
Oct. 12,
Oct. 13,
Sept. 14.
1038
1037
1038
Total leans and investments .. . ....... .... . ...... $516,662
$512,749
$400,414
Total loans . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . ..
240,784
246,963
231,400
Commercial, industrial and agricultural loans . . . . . .
155,066
154,550
147,486
Open market paper .. . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,340
3,849
1,402
Loans to brokers and dealers in sccurities... . . . . . . .
2,652
3,335
2,537
Other loans for purohasmg or carrying securities... .
14,319
16,063
13,008
Real estate lonns .. . . ........ .. . . . . . .. . . . .. .. . . .
20,335
21,155
20,433
Lonna to banks .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .
346
250
636
All other loans . ........................ .. . . ....
45,817
47,752
44,008
United Stutes Government direct obligations . .. . .....
181,112
186,085
175,217
Obligations full y guaranteed by United States Govt. .
40,208
28,417
30,603
Other securities. . ... .. .. .. .. .. . .. .. . .. .. . .. . . .. . .
54,468
51,284
53,014
Reserves with Federal Reserve Bank ... . ...........
111,764
114,012
103,816
Balances with domestic banks.. . . . .. .. .. .. . •.. . . . ..
208,306
165,070
218,597
Demand deposits- adjusted- . . . .... . ... . .... . . . . . .
409,837
308,183
41 2,000
Time d~po.~i ts... .. .. .. .. . . .. .. .. .. ........ . .... ..
132,198
126,627
132,350
United States Government depesits.... .. .. ....... ..
31,045
18,505
25,142
Iaterbaak deposits ....... .. .
.............. ... ..
212,812
202,747
201,762
Borrowings from Federal Reserve Dank . . .
None
120
None
-Includes nil demand deposits other than interbank and Uaited Stntes Government, less
cash items reperted as on hand or in process of collection.
'ro I NDIVIDUAL ACCOUNTS
(In thousands of dollars)
Sept.
Petg. change
August
Sept.
1038
1037
over yenr
1038
$ 8,440
$ 10,427
- 10.1
$ 7,491
20,022
20,818
+ .3
20,385
22,754
26,447
- 14 .0
21,300
4,170
1,631
- 0.8
3,065
238,480
266,084
- 10.4
222,102
23,615
25,466
- 7.3
23,529
76,225
87,110
- 12. 5
77,441
26,002
33,566
- 10 .0
26,636
210,477
228,672
- 4.0
200,516
8,766
0,302
- 5.8
8,317
3,737
3,260
+14 .6
4,510
64,540
67,472
- 4.3
61,349
44,337
48,805
- 0.2
40,570
7,616
8,501
- 11.3
6,060
0,740
10,507
- 7.3
8,967
11,370
14,632
- 22.2
10,080
14,187
18,041
- 21.4
11,747
13,830
15,255
- 0.3
14,106
DEBITS
Abilene..... .. .... .. ....
Austin ....... .. .... . ....
Beaumoat.... . .... ......
Corsicana .... . ...... . ...
Dallas .... ..............
EI Paso. .. .. .. .... ......
Fort Worth......... .. ...
Galveston .. .. .. .........
Houston .... .. ......... ..
Port Arthur .. .... ... ... .
Roswell. ............. ...
San Antonio ............ .
Shrevepert. .... . ........
Texarkana- .. .. . .. .. .. • ..
Tueson.... ............ ..
Tyler.. .. .... .. .... ... ..
Waco .......... .. .... .. .
Wichita Falls . .. .. . .. ....
Petg. chango
over month
+12.7
+ 1.8
+ 6.3
+36 .3
+ 7.4
+.4
- 1.0
+ 1.0
+ 0.5
+ 5.4
- 17 .3
+ 5.2
+ 0.3
+25 .5
+ 8. 6
+ 3 .6
+ 20 .8
- 2.6
1'otal... .... .. .. $828,135
$008,086
- 8.8
$778,287
+ 6.4
-Includes tbe figures of two banks in Texarkana, Arkansas, located in the Eighth District.
SAVINGS DEPOSITS
September 30, 1038
Beaumont .. ... . ...... . .
Dallas .............. . .. .
EI Paso . . ...... .... .. .. .
Fort Worth ... ........ . ..
Galveston ...... .. ...... .
Houston .. ....... ..... .. .
Port Artbur ...... ..... . .
San Antonio . . . ......... .
Shreveport ......... . ... .
Waco .. . .... ........... .
Wiehitu Falls ... ... .. . .
All other ...... , .. . . . . . .•
Total. ....... . ..
Number of
reperting
banks
3
8
2
3
4
10
2
5
3
a
3
70
116
Per~entage e~ange ill
savmgs depOSits from
Number of Amount of ,.---- - - -~___..
savings
savings
Sept. 30,
Aug. 31,
depositors
deposits
1037
1038
0,645 $ 3,816,129 + 4.2
+ .3
00,432
26,458,215 + 3.0
+.4
16,211
7,885,370 - 1.0
-.5
3S,420
13,35S,586 + 3.5
-.1
18,583
1l,041,860 + 6.2
+ 1.4
71,841
28,035,514 + 2.6
.03
6,140
2,745,202. +10 .6
+ 1.1
24,308
18,156,848 + 7.9
+.6
24,730
11,401,074 .1
+ .1
8,171
4,717,217 - 4.8
.4
7,326
3,808,047 + 12.6
+ 1.1
50,365
20,208,463 + 3 .0
+ .1
~-- ~
375,265
------
$162,522,525
--- ---+ 3.4
+.3
MONTHLY BUSINESS REVIEW
steady decline since March, the decrease over the six months'
period being 22 per cent.
Gasoline prices have been declining for about two months
and are currently about 20 per cent lower than a year ago.
Although the crude oil market has been weak for some time,
reductions in posted prices prior to October had been effected in relatively few fields. In the second week of October, however, posted prices were lowered from 12 to 20 cents
per barrel at nearly all fields outside of California.
Activity at cotton mills in the United States, after having
shown a steady expansion in the preceding four months,
declined contra-seasonally in September. Actual consumption during the month totaled 534,037 bales as compared
with 561,406 bales in August and 601,305 bales in September, 1937. According to trade reports, sales of cotton textiles by domestic manufacturers were lower than production
in the period from early July to the middle of September, as
mills had apparently increased operations in July and
August to fill the heavy yolume of orders placed in June.
By September, however, unfilled orders had been greatly
reduced, with the result that mills in many quarters curtailed
operations somewhat. Since the latter part of September purchases of cotton cloth have increased substantially and reVALUE OF CONSTRUCTION CONTRACTS AWARDED
(In thousands of dollars)
September September
August January 1 to September 30
1938
1937
Eleventh District-total ... S 11,415
$ 9,196
Residential. . . . . . . . . . . .
6,059
3,b85
All othcr.. .. .... .. .. ..
5,356
5,611
United States"- total.. . . . 300,900
207,072
Residential. .. .. ... ....
99,574
65,590
All other. . . ... . . . . . . . . 201,326
141,482
·37 states cast of the Rocky Mountainll.
SOURCE: F. W. Dodgc Corporation.
1938
$ 16,156
1988
$123,627
40,334
77,293
2,151,446
680.322
1,465,124
7,572
8,584
313,141
99,732
213,409
1937
$105,855
3R,146
07,709
2,303, 128
736,391
1,566,737
BUILDING PERMITS
Percentagc change
Percoatago
September, 1938
valuation from
Jan. 1 to Sept. 30, J988 ohan~c
--y----~
r-------v
No.
Amarillo .......
Austin.........
Beaumont......
Corpus Christi..
Dallas· .. .. .. ..
El Paso........
Fort Worth.....
Galveston......
Houston .. ......
PortArth~r ....
San AntoDlo....
Shrovoport.....
Waco ..........
Wichita Falls...
Valul)tion Sept., 1037 Aug., 1938 No.
58 $ 194,039
237
590,874
124
115,405
112
177,700
580
R84,265
64
144,040
264
324,627
177
80,024
517 1,820,210
154
109,013
240
164,372
141
327,042
59
217,020
48
125,503
--
- 12.0
+ 180. 7
+ 00.8
- 22 .3
+ 6.7
+ 18.8
+ 12 .7
- 96.6
+ 80 .3
+109.6
- · 27.1
+ 32.6
8.2
+253.6
--~-
+25.1
+ 9.0
- 12 .9
- 15 .2
-10.2
- 40.7
-25. 0
- 85.4
+11 .3
+8. 7
-60 .3
+ 6.5
+24.7
+ 11 .2
Total ...... 2,775 $5,276,084 - 14 .6 - 14.2
·Inoludes Highland Park and University PDl'k.
Valuation
305 S 1,002,032
valuatIOn
from 1037
1,836 4,402,647
1,225 1,045,404
1,208 2,248,047
6,005 8,880,828
714 1,321,971
2,008 4,586,004
1,411 2,003,989
4,157 18,793,640
1,264 1,247,075
2,449 3,800,715
1,331 3,848,552
485 1,178,923
492
665,396
+ 73.2
+ 46 . 1
+ 17 .4
- 17 .7
+
.6
+ 38.1
- 20.1
- 35.0
+ 26.2
+61i.7
+ 3.6
+ 62.4
+ 15 .6
+159.2
24,980 $55,760,233
+ 13.1
---
----
CRUDE OIl. PRODUCTION
(Barrels)
Septembor, J938
Increasc or decrease in daily
,--- -
-
Total
production
North Toxas ..... . ..... . .... .
- - --~
Doilyavg.
production
average production from
r - - - - - - - ____
Sept., 1937
Aug., 1938
South Toxas ...... ...... .... .
Texas COBBtal ...... .. . . .... . .
4,078,300
6,586,360
13,997,750
6,451,150
6,015,100
135,944
210,646
466,592
215,038
200,503
- 17,089
- 38,482
- 128,660
- 53,195
- 17,527
-
Total Texas ...... .. . . .
New Moxico ................ .
North Louisiana ....... . ... . . .
37,128,650
3,179,900
2,300,200
1,237,622
105,097
76,673
-254,953
8,500
- 11,507
- 153,686
868
- 3,427
Total District .. .. . .. , ..
42,608,750
1,420,292
-274,960
- 157,081
~tti:::::
. ::::::::: ::::::::
CRUDE OIL PRICES
(Price par barrol)
Oot. 13,
1938
Sept. 30,
1937
12,274
29,413
72,008
22,402
17,589
Sept. 30,
1938
North and west contral Texas... .. .......... . ...... $1.08
$1.20
$1.20
East centrol Toxas...... . .. . .. .. .. .. .. .. .. .. ... .. .
1.12
1. 27
1. 27
TexasGulfCoast ............... "......... .. ...
1.28
1.41
1.41
West Texas-Now Mexico.........................
.05
1.08
1.08
~orth Louisiana..................................
1.05
1.22
1.22
ast Texas (fiat price) . .. .. .. .. .. .. . .. .. . .. .. . . . ..
1. 10
1. 35
1. 26
NOTE: Prices quoted apply to oil 40 gravity and above for all fields excopt East To....
SOURCE: The Oil Weoldy, HouB Texas.
ton,
ports indicate that mill activity has again turned upward.
Cloth prices, which had declined during the period of dullness, were advanced when the expansion in sales occurred.
Stocks of cotton goods in several stages of manufacturing
and distribution are apparently at moderate levels.
.
Raw cotton prices continued to decline in the first half
of September, the average price of spot cotton, middling,
o/s-inch staple, at the ten designated spot markets, reaching
a low point at 7.92 cents per pound around the middle of
the month. Since that time, the market has r ecovered to
about 8.60 cents per pound, which is slightly higher than
the Government loan level. Nevertheless, a substantial volume of cotton is moving into the Government loan. The
Commodity Credit Corporation announced that in the three
weeks ended October 20 approximately 1,272,000 bales were
placed in the Government loan, bringing the total pledged
under the new loan program to 1,392,000 bales, of which
444,,000 bales were in Texas.
Exports of cotton from the United States increased by
considerably less than the usual seasonal amount in September, and the month's total of 388,658 bales was not only 37
per cent under the 617,444 bales exported in September last
year, but was the smallest volume for any corresponding
month in sixteen years. The restricted shipments of American cotton to foreign countries during September is attributable in part to reduced activity at cotton mills in Europe
and the Orient and in part to the European political crisis.
STATISTICS ON COTTONSEED AND C01'TONSEED PRODUCTS
,----- -Texas-- ---y---United Stntes----August 1 to Septomber 30
August I to September 30
This season
Last season
Tbis senson
Last 5cason
Cottonseed received at mills
(tons) ....... . ............ .
436,842
039,012
1,028,545
1.535,359
Cottonseed crushed (tons) . . . .
232,547
326,176
709,189
979,107
Cottonseed on hand Sept. 30
(tons) ...... . ............. .
386,368
385,708
991,832
1,008,788
Production of products:
Crudo oil (pounds) ....... . . 60,707,324
89,750,101
246.234,617
284,265,534
Cake and meal (tons) . .. .. . .
108,566
147.224
425,434
356,274
Hulls (tOilS) ...... .. ..... . .
60,408
86,130
259,742
207,257
Linters (running bales) ..... .
48,800
65,176
210,244
183,015
Stocks on tond Sopt. 80:
Crude oil (pounds) ......... . 20,448,708
18,559,610
58,150,171
68,688,601
Cake and meal (tons) ..... . .
31,014
72,298
103,003
250,650
HullB (tOilS) ........... .. . .
53,001
~3,234
97,568
145,7 13
Lintors (running bales) ... .. .
103,257
46,183
160,373
465,064
SOURCE: Bureau of Census.
CONSUMPTION, STOCKS AND EXPOn:rs OF COTTON
(Bales)
Septembor September
August August I to Septcmbor 30
1938
1037
1038
'fhis Beason Lllst season
Consumption at:
Texas mills ....... . ....
10,878
10,912
1l,b20
22,407
21.395
United States mills .....
534,037
601,305
561, 406
1,095,443
1,20'J.022
U.S. stocks- end of mOllth:
In consuming ""tab·mts. 1,107,388
086,249
1,0;;2,63 1
Public atg. & compresses . 13,013,410
6,880,029
9,825,616
Ex-mrts from U. S. to:
nited Kingdom .......
35,313
207,879
59,346
255,861
24,033
Franco . . . ............ .
74,399
113,741
90,232
143,326
21,833
Italy ..................
25,886
67,742
14,200
40.095
92,J81
Germany ... . ..........
36,577
88,959
62,226
138,070
25,619
Other Europe .... . . . . ..
98,682
86, 143
4~ , 9 J4
142,b96
128,709
Japan ................ .
90,085
148,674
41,936
24,887
52,589
All other countries ......
21,716
28,093
40,340
36,876
18,624
Totol exports. .. .
388,658
6J7,444
2CO,851
589,509
837,859
RECE.IPTS, EXPORTS, AND STOCKS OF COT'ION AT 1lfE PORTS OF
HOUSTON AND GALVESTON
(Bales)
Septcmber Scptember
AuguB August 1 to September 30
t
1938
1937
1038
'fhis season Last sCllSon
Receipts.... ...... ... ... .
612,300
924,324
101,124
71a,433
1,175,258
Exports. . . . . . . . . . . . . . . . . 211,297
291,414
04,035
305,332
346,657
Stocks, cnd of month. . . . . 1,034,582
1,343,626
1,238,857
PRODUCTION, SHIPMENTS AND STOCKS OF PORTLAND CEMEN'l'
(In thousands of barrels)
Pereentngc change over January 1
Perccntagc
througb
changc
September Septembel'
August
Sept. 30,
over year
1938
1937
1938
1088
Productioll at Texas mills .
624
- 1.3
5,165
+ 8. 7
+60. 0
ShipmonL. from Toxas mills
601
+ .6
5,251
+ 3.4
+ 3.8
Stocks nt cnd of month nt
Texa.mills.... .... ....
862
+16.7
+ 2.9
SOURCE: UniW States /lureau of Minos
----
MONTHLY BUSINESS REVIEW
NOVEMBER I, 1938
NATIONAL SUMMARY OF BUSINESS CONDITIONS
(Compiled by the Board of Governors of the Federal Reserve System)
.
'..
INDUSTRIAL PRODUCTION
,
,
,20
,'0
",I U'"
'
"0
110
000
.0
.0
.
TO
I
./
J~
\-
1+
V
~
,
00
'0
.0
TO
GO
1937
19)6
It,.
"'"
Index of physical volume of production. adjusted
100.
for seasonal val'iation. 1923-1925 average
By months. January. 1934 to September, 1938.
=
.,.".. ,
FREIGHT-CAR LOADINGS
110
,
.00
,00
..
.0
•0
TO
60
f".-.....
~I
-"rl
16_
.0
'\
70
v-
.0
'0
00
-0
1936
1937
,.,.
'0
Index of total loadings of revenue freight, adjusted
for seasonal variation. 1923-1925 average
100.
By month •• January. 1934 to September. 1938.
=
WHOLESALE PRICES
In September industrial production and employment continued to advance, and there was
also an increase in the volume of retail trade. Building activity continued at the increased
level reached in August, reflecting a large volume of awards for publicly-financed projects.
PRODUCTION
Volume of industrial production increased further in September and the Board's seasonally adjusted index advanced to 90 per cent of the 1923-1925 average as compared with 88
per cent in August. There was a substantial rise in pig iron production and output of steel
ingots continued to increase, averaging 4$ pel' cent of capacity. In the first three weeks of
October activity at steel mills showed a further increase and was at a rate of about 50 per
cent of capacity. Plate glass production continued to advance rapidly in September. Output
of lumber and cement was maintained, although at this season activity in these industries
usually declines. Automobile production in September remained at about the same low rate
as in August. In October, however, output increased rapidly as most manufacturers began
the assembly of new model cars. In the nondurable goods industries there were substantial
increases in activity at meat-packing establishments, sugar refineries, and tire factories. Output of shoes declined somewhat. Textile production, which had been rising sharply since
spring, showed little cbange in September, although an increase is usual. Activity increased
further at silk mills but at woolen mills there was a decline, and at cotton mills output did
not show the usual seasonal rise.
At mines, coal production increased considerably in September and there was also an
increase in output of copper_ Crude petroleum output declined as wells in Texas were shut
down on both Saturdays and Sundays, whereas in August only Sunday shutdowns had been
in effect .
Value of construction contracts awarded which had increased considerably in August,
showed little change in September, according to figures of the F. W. Dodge Corporation.
Awards for private residential building continued at the advanced level prevailing since early
summer and contracts for public residential projects were also maintained following a rise
in the previous month. Other public projects continued in substantial volume.
EMPLOYMENT
Employment and payrolls increased further between the middle of August and the middle
of September, reflecting principally increases at manufacturing concerns_ Employment rose
sharply at automobile factories and increased moderately in other durable goods industries.
At factories producing nondurable goods there was slightly more than the usual seasonal
rise in the number employed.
DISTRIBUTION
'00
.0
00
80
TO
70
00
.0
'0
1034
193'
1936
1937
,.,.
.0
Indexes compiled by the United States Bureau of
Labor Statistics. 1926
100. By weeks, 1934 to
week ending October 15. 1988.
=
MEMBER BANK ~ESERVES AND RELATED ITEMS
"WON S t:I OOUAIitS
14 ,
elL-lIONS or DOlLA R!!
14
'2~----+-----~-----+~f--~------i 12
'0~----+---~~~---1-----~~----i '0
Distribution of commodities to consumers showed a more than seasonal rise in September.
There were increases in sales at department and variety stores and mail-order sales also increased. Dep81·tment store sales for the first three weeks of October showed somewhat less
than the usual seasonal rise.
Freight-car loadings continued to increase in September and the first half of October,
reflecting chiefly a further rise in shipments of coal and miscellaneous freight.
COMMODITY PRICES
Prices of a number of industrial raw materials, particularly hides and copper, advanced
from the middle of September to the third week of October. Crude oil and gasoline prices,
on the other hand, were reduced. Livestock and meat prices showed large seasonal declines
in this period. In the first half of October there were sales of many finished steel products
at prices below those announced for the fourth quarter, but in the third week of the month
it was reported that prices had been restored to former levels.
BANK CREDIT
During the four weeks ended October 19 there were fmther substantial increases in the
gold stock of this country. As a result largely of these gold acquisitions and of net expenditures by the Treasury from its deposits with the Reserve banks, excess reserves of member
banks increased to a total of $3,270,000,000 on October 19.
Demand deposits at reporting member banks in 101 leading cities were also increased
by the inward gold movement and on October 19 amounted to $15,750,000,000, the largest
volume ever reported by these banks. Following substantial increases during September,
reflecting purchases of new issues of United States Government obligations, total loans and
investments at reporting banks showed little change during October.
MONEY RATES AND BOND YIELDS
Wednesday figures. January 3. 1934 to October 19.
1988.
The average yield on long-term Treasury bonds declined from 2.48 pel' cent on September
27 to 2.28 on October 21. Yields on Treasury notes and Treasury bills also declined in the
period.
@FedFRASER