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Federal Reserve Banli. of Dallas
This summary or agricultural and commercial conditions 'In
the Eleventh Federal Reserve District Is Issued In the belief that
a concise review or trade will be of Interest to our member
banks. business men of the district and friends of the Federal
Reserve System.
The Information given Is obtained by the Federal Reserve
Agent from various sources throughout the district. and In our
opinion the same Is reliable.
Those desiring the letter furnished them regularly will receive It without charge upon application.
DALLAS, NOVEMBER, 1918,
Unseasonably warm weather, accompani·ed by the
influenza epidemic, has had a very serious effect on
business in nearly all parts of the District during
the past thirty days, and trade has been generally
inactive as the result. In the larger cities, authorities have closed the sch.ools on account of the influenza scare and placed a ban on m'oving picture
shows and theatres. as well as public meetings
where crowds might congregate. This, of course,
has resulted in people staying closely at home and
made for a general dt111ness in business. Retail
trade has su ffered most. It is expected that this
slump in trade will be only temporary; in fact, reports now indicate that the situation is somewhat
~l11proved, and we believe the worst of the dang,er
IS over.
Our correspondents in all communities have been
so thoroughly absorbed in the Fourth Liberty Loan
campaign that replies to inquiries regarding business conditions have not been as numerous or satisfactorv as would otherwise have been the case.
Conse~vatism in all lines is still very pronounced.
Ot1tsicle of the developments above noted, but little
change has occurred in trade conditions since a
month ago. Wholesale dry goods firms report that
the volume of business in September was unusually
heavy. In fact, some of the largest wholesalers advis'e that the month's business was the greatest in
their history. At the present writing there is a temporary lull, as with Fall shipments out of the way,
and the Winter purchasing period later than usual,
on account of warm weather, it is "between seaSons" with them and some inactivity is reported.
Cool'er weather is badly needed to stimulate trade.
The volume of orders with the large mail order
houses also reflects the effect of warm weather and
the influenza epidemic, and a decrease is reported
over the same period a month ago. In other wholcsale lines, such as groceries, hardware and drugs,
business is very good, and the volume exceeds last
year. Collections in the wholesale trad·e are fair to
good, and should greatly improve as cotton and
other Fall crops are marketed. Manufacturing is
active.
Agricultural conditions continue to improve, as the
result of fine rains over a large
AGRICULTURE area of the district, especially
those counties of Central and
Vvest Texas, which have been heavy sufferers from
the drouth. This condition is particularly true in
such counties as Jones, Taylor, McCulloch, Menard, San Saba, and Tom Green, where advices
within the past week indicate a rainfall averaging
{rom one to three inches. N early all of Central
and West Texas have received good rains during
the past week. This will permit of extensive preparations for next year's crops, and our correspondents advise that an unusually large ·a creage of wheat
and oats will be sown. Prospects for a top crop of
cotton have been somewhat improved during the
past thirty days, by rains in North, Northeast and
l:"ast Texas, as the moisture greatly revived the
plant, permitting of the maturity of bolls and
stimulated the growth generally. While over most
of the district the top crop will be negligible, it is
a fact that in the Red River counties, and other
favored sections, there will be a considerable yield.
The agitation over Gov·ernment price-fixing has had·
a demoralizing effect on the movement, and at this
writing v·ery few sales are being made. In a bulletin issued by the Texas representative of the
United States Department of Agriculture on October 2nd, the condition of the Texas crop is esti-
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
mated at 44 per cent of normal, against a condition
at the same period last year, of 43 per cent. Based
on this estimate Texas will produce 2,820,000
equivalent 500 pound bales.
The sweet potato crop of East Texas is now being
marketed, and the yield promises to be generally
satisfactory. Our correspondent at Winnsboro,
which is one of the principal potato producing centers, advises that owing to the scarcity of plants
in th e Spring- the production there will be materially
curtailed. Farmers who wer-c able to secure plants
are selling to their less fortunate neig hbors, and as
a result up to the present writing only thre'e cars
have moved.
Our correspondents in some of the principal feed
producing counties of the "Panhandle," such as
Wheeler, Gray and Swisher, report that the crop
of maize, kaffir and sorghum will not average onetenth of normal. The feed crop is very light on
account of the protracted dry weather.
The Liberty Loan campaign has overshadowed all
other financial matters during the
BANKING
month. At this writing figures indicate a large over-subscription.
\Vhen the final returns are·received, the total should
be materially increascd. It is quite gratifying to
report that many of the counties in the drouthstricken sections were the first to raise their quota.
Other counties in more favored sections, wher'e it
was expected the quotas would be quickly raised,
have seemingly found it difficu lt to do so. T?e influ'enza epidemic and rumors of peace senously
retarded the campaign, as the impression generally
prevailed that if t h e war ended quickly there would
be no necessity to subscribe to the loan. The announcement that the Government is already making preparations for the F ifth campaign early in
1919 should and no doubt will, dispel this feeling.
Of the six ~eries of Treasury Certificates (not including that of 9ctober 1st) issue~ in <1:nti~ipa~io,n
of the Fourth LIberty Loan, of whIch thIS dlstnct s
allotment was $86,400,000, we have subscribed
$73,863,000; or a deficit of 14~ per cent of the. t.o tal
allotment. When it is conSIdered that condItIons
in t he Eleventh District are not 85 per cent of normal, we think t he showi ng made is an excellent one.
T he demand for funds is very heavy, and altho ugh
at th is season a gener al liquidation is to be expected, the same has not tal<:en place up t~ this t ime.
T his is attributable to t he slow market111 g' of the
cotton crop . As a result, the loans and discounts of
member banks have decreas'ed but slightly, and deposits have not appreciably incr eas'e d. I nterest
r ates are finn, and t he m ajority of loans are being
made at prevailing rates of 6 t o 8 per cent. T his
instit ution is enco uraging in every possib Je way
the policy of memb er banks in discriminating hetween essent ial an d non-essential credits, an d thi s
counsel, according t o our inform ation, is b eing
pretty generall y follow ed. The demand on thi s b ank
for the month ending Octob·er 21st has continued
very heavy, and our loans and discounts have increased durin g that period approximately $8,000,000.
In order to m0et the same, we have found it necessary to rediscount with other Federal Reserve
banks. Member banks' reserve deposits have fluctuated but little within the past thirty days. During the same period the Federal Reserv'e note circulation of this bank has increased some $6,000,000.
VI e continue to receive additional 'a pplications from
state banks. At present ,our state bank membership is 89.
Clearings at the principal cities of the district show
a n incrcase of 31 per cent in September over the
same month of 1917. Following are figures in detail for that period, also for the first nine months of
1917 and 1918:
SEPTEM13ER
Austi n ................. ,.......... $
Beanmont ................ ,..
DaIJas ........... .................
E1 Paso .......... ..............
Port WorLh ............... ,
Galvcston .......................
Houston ..................... ,.
Shreveport ......................
Waco ........... ...... ,. .,...
1917
12,165.646
4.145,924
69.664.280
16, 108.191
5'f.630,339
26,746.643
64,078,924
9.000,000
11,252,549
1918
$ 12,600.000
5.098.026
107.789.194
19.524.935
60,482,285
32.337.686
87,614,995
11.000,000
14.662,130
Inc.
3.6
23.0
54,.7
21.2
10.7
20.9
36.7
22.2
30.3
TaLa 1.. .......................... $267.792,496
$351.109.551
I ncreasc-$83,317,055-31 %
NINE MONTHS
1917
AusLin ..._........................$130.0·17,471
Bcaul110nt ........................ 41.993.791
DaIJas .......................... ... 479,469,001
EI Paso ............................ 154,202.661
Port Worth .................... 437,681,572
Galvcston ........................ 186,995.227
Houston .......................... 463,390,426
Shrcveport ...................... 64,023.088
1918
$150,241.434
49,810.333
727,237.711
162,74S,257
506,666,912
192.085,329
567,218,977
88.199,151
Inc.
15.5
18.0
51.7
5.5
15.8
2.7
22.4
37.8
TOlal.. ........................$1,957,803,237 $2,444,208,104
Incl'case-$486,404.867-24.8%
Building permits issued at the principal cItIes of
the district in September show an
BUILDING increase of 269 in number, and
$56,554 in valuation, or 7.5 per
cent, over the same month of 1917. The
building industry shows little change in the past
month . Oper ations are confined st rictly to Government demands, and conditions prevailing justify
the statement that the industry is due for a long
term of dull ness. The extreme shor tage of labor
is preventing the lumber m ills from ru nni ng over
half of the time. Added to this situation is
the embargo placed by the Govern me nt Rai lroad
Administration against the shipment of lumb er to
poi nts East of t he Mississippi R iver or North of
t he O hio River, except 0 11 w ritten ord'er, which has
lar gely decreased shipments for that t erritory.
1 he r estrictio ns placed upon building operation s by th e War Industries Board, wh er eby
no new buildings shall q e st arte d w ithout a permit
.
[rom that Board (except farm buildings costing not
~o exceed $1,000, and no repairs to existing buildIngs which shall exceed a cost of $2,500), are very
materially reducing the retail lumber trade. 'The
price of lumber remains steady at the Government
~1<aximum list. The clay products industry and ot.her
hnes of building material are marking tim e on account of the Government's building r egulations.
DetaiLed figures of building permits follow :
Austin
SEPTEMBER
1917
No. Va luation.
17
14,182
No.
9
1918
Valuation.
13,595
tort Worth ................
1-Ialveston ....... -..........
S ouston ....... - .............
all An tonio ..............
~reve port ..................
aco ............................
24
200
164
169
67
17
79
388
251
203
55
24
85,792
15,286
205,400
242,680
73,940
45,250
~ff~~~::~;::::~:::~~:~~~~~:~~:~~ 11~ ~H~!
66,545
14,326
211,030
120,065
28,967
56,217
~ ~~:~~!
TotaL ..................... 882 $754,340
1,151 $810,894
Increase in Valuation-$56,554-7.5%
Increas e in Number-269
Detailed figures as shown below for the month
of September indicate a decrease in
FAILURES number of failures of 9, and an
increase of $49,379 in the amount. of
liabilities carri<ed, over the same month of 1917:
Number
1917
1918
42
33
Lia bili ties
1918
1917
$223,142
$272,521
Labor conditions are about the same as previou sly
reported . Little if any change has ocLABOR curred, except perhaps there is a
greater shortage in skilled Iabor for all
class<es of work. The influenza epidemic has depleted the organizations of many concerns, and more
especially banking· institutions. In some instances 50 per cent of the clerical force is short on
account of sickness, which has resulted in the work
of such institutions getting very badly hehind.
'the live stock industry in Arizona is in a serious
condition. Ranchmen who are
LIVE STOCK able to do so are shipping their
herds to other sections for pasturage, and a large number of cattle have been s'ent
into Mexic,o. In Texas and New Mexico live stock
conditions are somewhat improved, as rains during
the past month have relieve d range conditions.
From Roswell our correspondent advises that within
the next sixty days range conditions will be greatly relieved by the shipment of sheep and cattle, and
as a result there should be a general liquidation of
indebtedness in that section. It is also expected
that in the v·ery near future the deferred payme nts
from the Government for the 1918 wool crop will
he made and this should greatly relieve the [1I1ancial situation. The high price of cake and other
feed has made for rather an unfavorable outlook as
regard s cattle in the Northwestern part of the district. The experiences of last season have made the
ranch men of that section realize that they cannot
hold cattle at the present price of feed and make
any profit out of them. It is expected that a large
shipment of hogs-probably 50 or 75 carloadswill soon move from t.he Nacogdoches community,
and this will ease financial conditions in that section.
On account of the drouth, the consequent shortage
of cars and the high prices of feed, there has been
an unusually large run of cattle to the markets
within the past 30 days. They are in an unfit condition and prices received ar'e low.
Post office receipts at the principal cities of the
district for Sept'ember show an
POST OFFICE increase of $155,098, or 40.6 per
RECEIPTS
cent, over the same month of
1917. Detailed figures follow :
1917
Austin ....................... _................... _...$ 17,100
Beaumoll t ........................................ 10,0+2
Dallas ... "............................................ 114,258
E1 Paso ............................................ 25,796
Fort Worth ..................................... 47,609
Galveston ........................................ 12,792
Houston ....................................... _.... 58,769
San Antonio .................................... 60,997
Shreveport ...................................... 15,760
Waco ....................... _.. _................... 18,897
TotaL .......................... _...... _.... $382,020
Increase-$155,098-40.60/0
1918
$ 22,463
14,980
1.-14,044
29,798
68,512
21,609
85,582
91,005
22,295
36,830
$537,118
Business conditions over the Eleventh District may
be summarized as generally satisfacGENERAL
tory. We believe the present unsettled situation, caused by the epidemic, will soon pass away and as cooler weather
approaches conditions should greatly improve. At
present the Fall s'eason is rather late, and the weather during October has been warmer than that prevailing in September. This has had an unfavorable
tendency, and has checkecl activities in many lines.
Considering the various elements caused by the war
the outlook is promising, ancl with the Liberty Loan
campaign over, and the situation on a more even
basis, the outlook is encouraging.
STATEMENT OF CONDITION OF THE
FEDERAL RESERVE BANK OF DALLAS
At the Close of Business OCTOBER 25, 1918.
RESOURCES
Gold coin and certificates in vault.. ............................................. ........... _...................................................................... . $ 8,032,537.50
7,822,254.66
::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
2, 158,750.00
Gold held with for eign agencies ........................................................................................................................................
204, 0.10.61
Gold with Agent for retirement of F. R. Notes ........................................................................................................ . 24,215, 195. 00
g:~~ ~:~t~~~~~otn f~::d:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::.
$42,432,74;1;.77
Total
L egal t ender notes, silver, etc...................................................... .............................................................................. ... .
935,829.85
$43,368,577.62
Total
5% redem ptio n fund-F. R. Bank Notes ....................................... - .............................................................................. .
Bills discounted- m emb ers ......... _................................................................................................................................. .
Bills bought in open ma rket ....................................................... ........... - ..................................................................... .
181,700..00
46,677,385.89
2\400,000.00
Total Bills on Hand ................................................................. ................................................................................... . $48,077,385.89
Investments-U. S. Bonds ............................................................. ................................................................................... .
One year Treasury No tes ..................................• ....................................................................................
U. S. Certifi ca tes of Indebtedness ................................................ ....................................................................................
4,00.4,80.0..00
901,00.0. 00
2a5,SOn.00
Total earning assets ................................................................ ................................................................................... . $53,188,685.89
7,005,633.98
F ederal R eserve Banks-Transfers Bought- (net) ............... .................................................................................. .
Checks and drafts in process of collection ............................................................................... _.................................• 10,204,436.83
961,888.72
Due from other F . R. Banks ........................................ ········· ....... ................................................................................... .
4,921,288.32
All oth er resources ..................·····················:····· ........................................................................................._...................... .
Total Resources ............................................................................................................... _........................................ $119,832,211 .36
LIABILITIES
Capital paid in .................................. ·················· ............................... .................................................................................... $ 3,115,100.00
5,097,976.35
Gover nment deposits ...................................................................... ....................................... _.._.. _.. _.................. ........... .
Due to member banks' reserve account .........................................,................................................................................ 37,347, 596. 09
7,262,467.79
Deferr ed credits, account checks and drafts in process of collection .................................................... ........ .
Federal R ese rve N otes in circula tion ........................................ ................................................................................... . 62,212,120.00
3,163,900.00
F. R . Bank Note Circula tion ........................................................ ................................................,...................................
1,633,051.13
All other liabilities ...........................·.·············· ...................................- ...............................................................................
Total Liabilities .............................................................................................................. _......................................... $119,832,211.36
OFFICERS
W. F. RAMSEY,
Federal R eserve Agent.
J. W . HOOPES,
Deputy Gov ernor.
CHARLES C. HALL,
Ass't F ederal Reserve Agent.
R. L. VAN ZANDT,
Governor.
LYNN P . TALLEY,
Cashier.
R. R. GILBERT,
Assistant Cashier.
R. BUCKNER COLE MAN,
Assistant Cashier.
PAUL G. TAYLOR,
Assistan t Cashier.
FRE D HARRIS,
Assistant Cashier.
@FedFRASER