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CHAS. C. HALL-W. J. EVANS,
Assistant Federal Rese"e Alrents

This. copr relens~d ~or publi.

Volume 11, No.8

catIOn In mornIng papers

.as..

September 30

DISTRICT SUMMARY
~1"111I1I1""IIIIIIIIIIIIIIIIII""IIIIII"I""IIIIIIIIIIIIIIIII"'II"IIIIIIII'11I1111I1 11 .. 111111111 .... 1111111111111111 ..... 111111111.11111111111111111111 .... 111111'"1111111111111111111111111111111111 .. 11 .. 1111111111111111111 .... 11 .. 11111111 .. 18

THE SITUATION AT A GLANCE
Eleventh Federal Reserve District
August

July

Inc. or Dec.

g:;:r:~~~~ ~U:~edi~~l~.~ ..~~.~.~.~~...~~.~.~~ ..~~:i.~~.~.-.-.-.-.-.-.-.-.-~' -.:'~' -'-'-'-'-'-'-'-'-~' -'-'-'-'-'-'-.::''-'-'-:'-.:''-~'.:''-~''-'-:~''-'-~::::::''-.:-:':''-.-:''.:'.-:':::-:'::~::: $696,888,000 $696,721,000
Reserve Bank loans to member banks at end of month ......................................................................... _ .. $ 26,380,617
$ 18,266,258
Reserve Bank ralicJ at end of month ......................................................................................................... ""'"
61.8 %
61.1 %
BUilding permit valuations at larger centers ........................._ ....................................................................... $ 7,246,066
$ 7, 860,709
Commercial failures (number) ...............•.................. " ............................................................. _.........................
60
72
Commercial
682,086
$
969,986
:

Lumber orders at pine mills (per cent of normal production) ....................................................................

98 %

If.Oo/~

Inc.
Inc.
rnc.
Dec.
Dec.
Dec.

44.4 %
0.7 points
7.8 %
80.6%
29.7 %

96 % Inc.

3 points

[!]IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIUIIIIIIIIUIIUIIIIIIIIIIIIllllllllllI.I1I111111111111111111111111111111111111111111111 1111 11111111 t! IIII.III111111111111111111"11111111111111111111"111111111111111111111111111111111111111.1.11111 ... 11111 ........

A strong seasonal demand for merchandise at wholesale
and increased industrial activity were important develop.
ments during the past month. The August volume of distribution at wholesale registered a large increase over that
for July and was substantially above that for the corres·
ponding month last year. While debits to individual acCOunts remained at practically the same level as in the
'previous month, they exceeded those of August, 1925, by
13 per cent. Department store sales reflected a gain of 13
per cent, as compared to July, and 17 per cent as compared
to the same month last year.
. Further employment increases were noted in many of the
dIstrict's industries with some going on a full time sche·
dule. Due to the falling off in construction activity, a gen~ral surplus of building craftsmen still exists. While there
IS a surplus of common laborers in some of the larger cities,
the shortage of cotton pickers which exists in practically
every section of the district is gradually absorbing this
surplus.
With the exception of cotton, principal crops made satisfactory progress, and on September 1st, the indicated yield
Was greater than that a month earlier. The cotton crop
showed rapid deterioration during August and the early
days of September. According to a survey made by this
hank, the results of which will be found elsewhere in the
ReView, the crop is very spotted and is from two to four
Weeks late. Insect activity has been increasing and rootrot is unusually bad, both of which have taken a heavy toll
from the crop. The cotton market, which showed a sub·
stantial rise during the last half of August, again turned

::

111118

downward and by September 15th, had declined to a point
below that obtaining a month earlier.
The expansion of business and industry and the lateness
of the cotton crop created a heavy demand for credit. Federal Reserve Bank loans to member banks increased $8,1l4~000 during August, and on the last day of the month they
amounted to $26,381,000 which was the highest point reached in nearly three years. While member bank deposits de·
clined $5,307,000 during the month and 011 August 25th were
$9,034,000 less than on the corresponding date in 1925, the
difference between the maturity dates of the cotton crop this
year and last year largely accounts for the declines. That
there is still a large volume of funds in this district seeking
an investment outlet is shown by the fact that the subscriptions to the September 15th issue of 31/2 per cent Treasury
Certificates of Indebtedness amounted to $37,000,500, allotments to which totaled $13,384,500.
A substantial improvement was noted in the district's
business mortality rate. The number of failures in August
and the amount of indebtedness involved were considerably
less than in either the previous month or the same month
last year.
For the thiI·d consecutive month, the valuation of build·
ing permits issued at principal cities reflected a decline and
for the first time in a year the total for the current month
was less than in the corresponding month of the previous
year. The production and shipment of lumber remained
at about the same level as in July but new orders received
increased. While the production of cement declined, ship·
ments showed a substantial gain,

CROP CONDITIONS
Weather conditions in this district the past month have exception of cotton which has shown considerable deteriora·
tion, the principal crops have made satisfactory progress.
not been altogether favorable for crops, as some sections
The condition of the Texas corn crop advanced two
have had too much rain while others have suffered from
points to 94, per cent on September 1 and present indications
high temperatures and the lack of moisture. Yet, with the

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

MONTHLY BUSINESS REVIEW

2

point to a production for the state of 107,564,000 bushels.
This is the greatest volume produced since 1922 when the
total yield amounted to 114~580,000 bushels. In New
MexicO' the crop is maturing rapidly and is mostly in good
condition although some of the crop has fired as a result
of heat and dry weather. Grain sorghums are in a generally
good condition throughout the district. In the eastern counties of New Mexico the crop is maturing and harvesting has
begun. The weather has been favorable for the Texas crop
and the 94. per cent cDnditiDn Dn September 1 indicates a
production of 51,852,000 bushels for the state. The Sep.
tember 1 estimate of the 1926 production of the small grains
in Texas is as follows: Wheat 34~200,OOO bushels; oats,
83,700,000 bushels; and barley, 7,700,000 bushels.

are beginning to rDt. The crop is very spotted and ~s from
fifteen to thirty days later than a year ago. The YIeld on
bottom land will be light but much of the cotton on the
higher land will produce as much or more than last year.

While the rains have interfered with the cutting and curing of hay, the production this year will be much higher
than last year. Most of the farmers will have a surplus of
hay this year.

The cotton ranges from poor to fair. Insect activity has been unusually heavy, and
the crop has deteriorated rapidly. There is a large area of
dead cotton. In some localities the cotton appears to be
shedding all young fruit. The crop is from two to three
weeks late.

Northeast

The crop in this section is very spotted, particularly in the west· center section. In the
extreme west, the crop appears to be from
fair to good with prospects that the production will pr?b~
ably reach the last year's figure. In the west· center sectlo
the crop is mostly from poor to fair.
Insects are very
active and have done considerable damage.

West and
West·Center

The present condition of the Texas rice crop promises a
yield of 6,067,000 bushels which is slightly higher than the
1925 production.

Condition of the crop ranges from poor
to good, and, as conditiDns were unusuall
adverse last year, production this year will greatly excee e
that of 1925. Insects have been very active throughout th
growing season, and despite heavy poisoning, they have
taken a heavy toll from the cotton crop. Another . adye~sd
factor is the very large amount of dead cot~on which died
before there was any fruit on it. The crop IS very spotte ,
reports indicating that some fields will .make a ve~y hea~y
yield, while other fields will make practICally nothmg. T e
crop is about thirty days late.

Center

a

SURVEY OF THE TEXAS COTTON CROP
Reports from approximately 1200 banks in the cotton.
growing counties of Texas indicate that the crop this year is
very spotted. It appears that in most sections, the cotton on
th.e bottom land, which normally makes the largest yield,
Will produce only a small amount this year. Most of the
cotton on this land has grown very rank and has fruited
very little. Insect damage was reported in every section of
~he state, rang~ng !rom slight in some sections to very great
mothers. POIsDnmg has been general with varying effects.
Control of the insects has been difficult, as the almost continuous rains during the past thirty days, in some sections,
have washed off the poison as soon as applied, and have
made additional applications difficult. In some instances,
~t h~s been di.fficult t? obtain sufficient amounts of poison
m time to brmg the msects under control, while in others
the farmers delayed poisDning too long and allowed the
insects to destroy a large portion of the crop before makin«
any attempt to bring them under control. Furthermon~
weather conditions have been conducive to the rapid prop a:
gation of insects. Reports state that in many fields the
stalks have already been almost completely stemmed by the
leaf worm. In the older cotton producing sections, there is
an unusually large percentage of dead cotton, and as most
of it died before maturing any bolls, that porti~n Df the
crop is an almDst cDmplete loss this year. There is given
belDw a summary of reports, by districts:
While the crop in this section is somewhat
spotted, the condition, generally, ranges
from fair to excellent. In several counties, the leaf and
boll worms have done considerable damage, but, over the
district as a whole, it appears that the damage has been
lighter than in other sections of the state. The crop gen.
'
erally, is earlier than last year.

Northwest

Cotton in this section ranges mostly from
poor to' fair. Insect activity and root-rot
have been very bad. Some bolls at the bottom of the stalk

North

The crop ranges mostly from fair to goo:ci
Insects have been active, and have destroy
. b . . g to
a considerable amount of the crop. Cotton IS eg~nn~n
open rapidly, but the recent rains have retarded plckmg.

East

Condition of the crop is very spotted, rangino- from poor to excellent. Root-rot haS
o
been very bad and in some counties has taken a very heaY.Y
toll. Picking is well advanced, but considerable difficulty. IS
a
bein ::> experienced in obtainin« pickers, and in SDme countieS
0
• k' g
farmers are required to pay very high prices for piC In .

South

d

Condition of the crop is from poor to fai
The root-rot has done much damage, and
insects have been very active. The scarcity of p~ckers an
recent rains have greatly retarded picking operatIOns.

Southeast

LIVESTOCK
The condition of ranges and livestock thr?ug~lOu.t pr:~
tically all of the Eleventh Federal Reserve Dlstl'lc~ IS fd S
fair to excellent. The rains during the past thlfty a~s
have been generally beneficial and fall and winter gras It
practically assured. Livestock for the most part are ~;
Reports indicate that in some sections a greater numb n
Df livestock will be retained on the ranges this year /hh e
usual as the heavy liquidation last year left some 0 t
ranges understocked.

r

MONTHLY BUSINESS REVIEW
Movements
and Prices

Livestock movements to the Fort Worth
market during August were on a more restricted scale than in the months immediately preceding and were less than a year ago. Receipts of
cattle and sheep were substantially lower than in July and
rleceipts of cattle and calves showed a heavy decline from
ast year.
The cattle market was irregular, but on the whole prices
tended toward lower levels. At times the market developed
some strength but the gains could not be maintained. Calves
Were in good demand during the greater part of the month
and prices gradually worked to higher levels. Following the
decline during July, the hog market turned upward in August and on the last day of the month the best were selling
at SI5.00. Sheep prices reflected a decline but lambs
cleared to a slightly better advantage.
.'
~II"I""""I"II"'II"""'I"II"'I"II'I"""II •• ,1111111, ••• ,1.11111111.,1, ••• 1111111' •••••• 1 ••••••• 11"IIIIII"m

i::

Calves ..._......... 20.268

: Hogs
12.247
& Sheep ................21.872
......... _..

46.918
l S.094
28.447

L 26.645
L
847
L 2.075

L
G 5.190
G
865
L 20.081

15.078
11.882
41.4 58

:.1

:
a

11I11I11I11I1I .... II ... ,I~ .. II .. IIIII .. II .... IIIIIIUIlIlIlI ... III .. ,IIIII ..... ,II .. 1I ........ Ullll ...................

l!l

COMPARATIVE TOP LIVESTOCK PRICES
August
1926

Aug us t
1925

July
1926

igi~r~~~ts~ ; ~:~ ~ ~;~;:~ ; ~; ;:;~; ; ~; ;~;~i;~ ; ;t Hi Hi Hi
$

$

~~;ses....:::=:=:=:::::::::::::=:::::~~::::::::::=:=:=::::::=::::: ~~:~g
t~,:::gs ..::::==:::::::::::::::::::::::::::::::::=::=:::::=:::::::= 1U~

~"11111""1"'1'1111"111111111111'11'111""11''''1111'1".1., ••••••

1tg~
1~:g~

~~:~g
1~:~~

1111,.1.11.11,,11.11111,1.,111111'1'"' •• ,111 , .1 18

~11I1I1I1I1'''''''''''''I1I1I1I1I1I1I1'"I'I1''''''I'''III'''I1I1I1I1I1I1'I1''''''''"1 11111111111111 .. 111111 ........ 115)
MOVEMENTS THA::::H
1926

~ ~et receipts .... _._........_..... 146.485

:
:

S~orts

.... ._. .... ............. ... 120.579
cks. August 81..............

T::g::;:u:;~i::L:u:~~~;
1925
123.948
105.847

Sea son
146.485
120.579
175.885

I:.

Season
128.948 ~
105.847::
70.168:

GJ ...... II .. I ... III • II ... II.IIIIU.I ... IIIIIIIIIIIIIIIIII ... IIII.IIII.III1I1I1I1I1I1I1I1 ..... 111.1111111111111111111111.18

~.~_ ...."""",, ............. ~:.~;;~;~~...~;~~~ ...~;~;:::;;............................rn
~

:

~

:.
:
:

J.

August 81.
1926
~or Great Britain .._......__ ._.......... _................._..... 7.400
or France .... ... ..... . ........................................... _... 9.500
~or other foreign ports .. _.............................._._... 87.GOO
I or coas twise ports .. . ................ _.......................... 2.000
n compresses and depots ...................... _.......... _...... 119.835

August 81.
1925
700
8.780000

Total ............................................ ............._......._.. 170.885

70.168

--

500
64.968

E

~.I •• IIIIII ••••• II.I ••• I •• ' •• II •••• I •••• II ••••• , ••••• 1•••••• 1...... 1••••••• 1•••••••••• 1••••••• '.1.1 ••••• 1•••••••••••••• I!l
:
E

I~.,.._~.~o~=~ ~~;N ~;~~::~; A";g I
~xports ............................. 180.078
tocks. August 81 ........ ......

117,825

180.078
205.525

117.825::
168.472 E

L!Jh .... I ......... II .... IIIIIIIIII .... IIII.III ... UI ... III1.U.II ..... ' ............. 1I ... 11 ........... 1 ..... 1 ..... 1.1 ••

:
::

August 1 to August 81
This Season
Last Season
Receipts .......... _.• ... _ ..._........___..........._ ........ 427.721
481.091
E xports: Great Britain ............ _.................... 46.274
59.128
France ............. _................__.._....... 29.407
41.484
Continent ._... _.... _............. _.... _....... 188.687
217.808

§

::
~

•
::

.~
:
::

~

if!i~~C~~~~.... ::::::::::::::::=:::::::::~::=::: 82.8~~
Total foreig n ports .... ...._...... _ .... 291.780
Stocks at a ll U. S. ports, Augus t 81.._......... 669.076

14.15g
882.065
812.828

rn
E

:
:
::

§
::

§
•
::

~

:
::

•••••••••••• I ••••• I.I •••• I ••• ' .............. I ••••••••• • 1 •••• 1 ••••• 11.'.' •••••• 11 •••••• 1.1 ••••• 1 ••••• 1 ••• 1'111.,1 ••• 1 " ' 0

8 ,••••••• 111.1 •••• 1 •• 1.111.1 •••••••• 1•••••••••••••••• , •••••••••• 1•• ' ••••••• '1.1.1 ••••• '.1 •••••••••••••••••• , •••••••••••• [ii]

§

~

SPOT COTION PRICES
(Middllnlr Basis)

::

~

E

August. 1926
High
Low
New York ............ _...... __ ........ __... _._ ..._ 19.20
17.70
New Orleans ............. _...._................... __.... 18.74
17.17
Dallas .................... _........ _...................... _ ... _ 18.80
16.60

::

~

::
::

~ ~~f:!>::m····:::::::::::::::::::::=:·.:::::::=::==::::::::-.::::: i~:~g

it~~

Sep t 15 E
i926 ::
17.25
16.81::
15.75 ::

§

~~:~~ ~

II II II II II II II II .. II ...... III ........... fllllt II II 11 .. 1""", " ' " .. ,11 •••• 1 It .. 1111111111 1 111 II .. 1111111.1111

,[!]

COTTONSEED PRODUCTS
After strengthening somewhat in July, the market on all
classes of products shipped from 50 reporting cottonseed
oil mills in the Eleventh District, declined in August. Crude
oil sold at an average price of $.1073 per pounl in August,
as against $.1268 in July, while the average price received
for cake and meal declined from $28.42 per ton in July to
$26.76 in August. Hulls brought $7.85 per ton, as com·
pared to $8.11 in the previous month, and linters dropped
from an average price of $.0370 per pound in July to $.0298
per pound in August.
CO'ITJ.'ONSEED PRODUCTS SHIPPED AND AVERAGE PRICE
RECEIVED

I

§
§ Crude oil ....................... _.....................
::
::
::

Cuke and meal ..................................
Hulls .................................................. _
Linters .................................................

t!1 ....

prOd~:ustf' ~:::age

Shipped
2.093 .740Ibs.
7.roS5 tollS
2.725 tons
2.095.0u9 lbs.

,,8

::
::

I

Price
F. O. B. MUI ~
.1073 per lb.
E
26.76 per ton ::
7.85 p er ton :
.0298 per lb.
E

IIIIIIII ...... III1 ................ II ................ II ............ I1 .. IIItIlIlIt .. II .. I.1111111111111.111 1 11111111

[!)

TEXTILE MILLING
Some improvement in the textile situation was noted during August. The reporting mills consumed 2,131 bales of
cotton in August, as compared to 2,074. in July, and 1,732
in August last year. The August production reflected an
increase of 10 per cent over the previous month and was
2.6 per cent larger than in the corresponding month last
year. While the volume of buying has been fairly good, it
has been mostly for immediate delivery. Stocks and un·
filled orders on hand at the end of August were considerably below those at tha end of both the previous month and
the same month last year.
[!I1I1I ...... I ..... " , 1I •• tI ....... II .111 ............. II II ............ II .. , '....... II II II .. II 1''''''11 II II II I I " 1I .........

.

l!J .. •..... I ...... III1I1I1I1I1 .. II ... I ............. U .......... II .... II ... II .... III1 ........ , .. 111.111111111'11.1.1111111 . 8

:
J.

SEASON'S RECEIPTS. EXPORTS. AND STOCKS AT ALL
UNITED STATES PORTS

::
::

The August exports of cotton from Houslon and Galveston were substantially
greater than those for the corresponding
month last year. Exports from all United States ports were
considerably under those for August, 1925.

~TION

g

:

GlI ••• I •• I ••••••••••••• I •••••••••••••• I •••••••••••••••••••••••••••• 1 ••••••••••••••• , ••••••••••••••••••••••• 1.'.1 ••••••••• [:1

Cotton
Movements

!:.=

[!J"II ...... IIIIIIIII ....... I ........ I1 ............... IIIII .... I1 .............................................. I .........

I!J """'

~5~foR~~l:~E:~~:f:,Ji~ ~~::

c,"" ___

3

E

rt1
§

TEX'l1ILE MILLING STATIiTICS

!~:~E: ~a:~:.:?h~;~_~=~==::m; ~fli; ,;!i I

8 ....

l11

1111.11111 ...... 1111 .................... 1111 .................... 1111111111 .... 111IIIIIIIIIIII ... I •• II .. IIIIIIIIU. ' £!]

WHOLESALE TRADE
A broad demand for merchandise in the wholesale channels of distribution was the outstanding feature of trade
reports for August. Although the summer slackening was

4

MONTHLY BUSINESS REVIEW

less marked than usual, early fall buying has been on a
large scale. Sales during the past month reflected a large
seasonal expansion over the previous month and exceeded
those of the corresponding month of last year by a wide
margin. Yet, reports indicate that merchants, as a rule, are
operating on a conservative basis and are keeping commit·
ments closely aligned with consumer demand. Dealers in
some lines state that September business has been good.
Collections so far have not been up to normal but the
lateness of the cotton crop has retarded payments to some
extent. The outlook for the immediate future is promising.
Coincident with the opening of the fall buying season in
leading centers, there was a heavy demand for dry goods at
wholesale, Sales of reporting firms were 93.4. per cent
greater than in July but were 3.2 per cent less than in Au.
gust last year, While business in the aggregate is large,
merchants are buying cautiously and are holding commit.
ments well in line with consumer demand. Reports indio
cate that buying so far in September compares favorably
with that for August and that the outlook for fall trade is
good.
Th~ demand ~or farm implements during August was well
sustamed. While sales were 2.5 per cent less than durinO'
July, they. were 45.6 per cent greater than in August, 1925.
The combined sales for July ~nd August this year averaged
53.7 per cent larger. than durmg the corresponding months
last year. The s.atlsfac~ory p~'ogress of crops during the
summer and the mcreasmg eVidence that the returns from
this yea;'s crops w,nl exceed those of last year, are being re.
~lected m the heaVier volume of implement purchases. While
Implement purchases during the past two months have ex.
ceeded those during any similar period in several years it
should be remembered that ~urchases .since 1920 have gen.
erally been below normal. Pnces remamed generally steady.

For the third consecutive month the sales of reporting
grocery firms have shown an increase over the previous
month and have been slightly higher than in the same
months of the previous year. August sales were 9.4, per
cent greater than in July and 0.7 per cent above thos~ for
August, 1925. Reports indicate that the demand contmues
generally good.
A renewed demand for hardware at wholesale was notice·
able during August following the seasonal recession in
June and July. Sales of reporting firms were not only
18.5 per cent larger than in the previous month, but eXceeded those for the corresponding month last year by 10.~
per cent. The increased demand appeared to be genera
throughout the district.

m
..

!IIU.UIIlIIlI ........ UIIlIlI ............ UUIl .. IIIIIII .. II ............. I ...... IIII .... 1I11 .. IIU ... I .. II ..... IIlIr@

E CONDITION OF WHOLESALE TRADE DURING AUGUST, 1926

S

;;

:

Percentage of Increase or Decrease in

I~~~;;~;;:~~f~~ ~fut~~~ A~~{?;.~ I
E D"ugs ----..----____ .. ______ +19.2
:

Hardware _______________ +10.0

+25 .1
+18.5

+11.0
+ 6.2

-

1.0
None

-8' 8 :
-2. r"

8.11111111 .. 1111111 .... 1 .. 111111 .. 11111 .... 1111111111 ... 11111111'"11 .. 111 .... 1111 ... 111.11 .. III1U ... ' ... II •• I ......... L,;.I

RETAIL TRADE

While summer inactivity was noticeable in department
store trade, buying in a good volume for this season waS
in evidence. Sales of reporting stores were 12.7 per ce~)t
larger than in July and were 16.5 per cent greater than In
. d'
the corresponding month last year. Late reports mica ~
that buying during the first half of September has been
very satisfactory.
Stocks on hand at the end of August were 8.0 per cent
greater than a month earlier, but were 6.6 per cent less
A. strong demand for drugs at wholesale was in evidence than at the end of August last year. The percentage of sales
dunng ~ugust. The sales of reporting firms reflected a to average stocks during the first eight months of ,1926 ~ad
further mcrease of 25.1 per cent, as compared to the previ. 162.5, as compared to 152.8 durin'" the correspondmg pen o
ous month and .were 19.2 per cent larger than in August
in 1925.
c
1925. That the Improvement in business is general through:
The ratio of outstanding orders at the close of August t05
out ~he d~strict is shown by the fact that sales of every reo total purchases during 1925 was 9.8, as compared to 8..
porting firm were. greater than in either the previous month
h
d
ar
or the corresponding month last year. Reports indicate that at teen of July and 11.0 at the close of August last ye .
The ratio of August collections to accounts receivable
the demand is steadily improving and h
fall trade is good p'
. d t atltlhe outlook for August 1st was 32.4., as compared to 35.6 in July and 33.
.
nces remame genera y steady.
in August, 1925.

°1

8 .... 111 .... .,1111111 ....... 1111111111111111111111111111111111.111111111111111111111111111111111111111111111111111""1111111

u •• II •• [!J
.1111111111111 11111111111111111."111 •• '1'1.111 1 1111111.'1 •••• 11 ••• 111.11111.111.111 ••• , ••••• •• '1.111 ••• 11 •• 11,'1111"

Total Salee

August, 1926, compared with August 1925
August. 1926, compare with ;July, i926
.----.---------------.. ----------------Jean. I to date, compared with same period I ·-i-·-----------.. ---.. ----.. - ........-·--....
redlt Snles:
as year ____ .._________________________
August, 1926, compared with August 1926
August, 1926, compare with .July, 1'926
---------------------------------------Jan. 1 .to date, compared with same period Inst..
Stocks.
-------------------------__
August, 1926, compared ,,:,ith August, 1925 .. _____________
August, 1926. compare w,th .Tu l
1926
--- -----.. ---------.. --Percentage or1925 ______ average stoc?~ In
salcs to
----------------- -----------------------August,

Dallas
+12A
+ 9.7
+ 5.8

pcrc:::::·o/::~~--~:-:~~~~~~~:~:~~~~:::::::::::::::::::::::::::::=:::::=:::-~:::=:==::=:

y -------......--..------..----ear---..

January 1 to August 81 1925
January 1 to August 81' 1926-----------------------..-------- - - - - -.. -Ratio of outstanding orders ~ Inst y~;;--;--------- .. h------------------------------------Ratio of August collections to accau tsr s p'!rcbalscs _____________________ ..___.._
:
August 1, 1926
n recelva c, due and outstanding
•
.
--....-------------------

[!llill 11111 11111 11111 I. I. 11111' III I. 11111 III I•• III. I", 'III'I::~:·::::::·::;·-····-·· ··-------__._ •.

u

_ _ _ _ _ _ _ _ _ • • ••

::

Total=

I:

OtAhlelrs
+ 6.2
+ 68
+ 1:5

District
+16.5
+12.7
+ 5. 2

S

BUSINESS OF DEPARTMENT STORES
Fort Worth
+ 25.1
+ 4_7
+ 18.1

HousWn
+10.8
+ 2.9
6.6

+

:

~.

+16.9
+18.1
+ 9.0

+51.8
+15.2
+21.6

+ 9.8
+15.9
+ 7.1

+ 7_7
+12.5
+ 4.8

+ 5.5
+14.8

+16.7
+ 54
.

+ 87
+17:6

_ 9.1
+11.5

+21. 0
+22.9
+ 7.7
6
_ 6.
8.0

i~:~

it~

~~:~

i~:g

i~:~

i

129.1
216.6
129.6
286.2
89
12 6
' .
80.7
88.0

166.2
174_8
92
.
86.3

152.8
162.5
9.8

:
:
:
:
:
•

182.2
180.S
18.2
27.6

+

82 4
.

111I1I11.IIUIIIII .. 11111I11I1II ... UIIIIJItIt 'U UIIIIUIU.II ............................ 111111 ......... 11111 ...... 111 .... 11111 ........ 111 .. '"1111111111" .... 11 ....... 1,,11

:

S
S.

~.
:

Ille

MONTHLY BUSINESS REVIEW
FINANCIAL
The sustained activity in trade and industry during August was reflected in the vO'lume O'f checks charged to' dePO'sitO'rs accO'unts at banks in sixteen principal cities O'f
the Eleventh Federal Reserve District. Debits to' individual
aCCO'unts fO'r the mO'nth amO'unted to' $696,388,000 which
Was practically the same as in July but 12.8 per cent greater
than in August, 1925.
~\"'IIIII"II"'III'I'IIIIII"I'II'I"I'I'IIIIIIIIIII 111111.11111111"'1111.1., ••• 1".1.1'11111""1111.111III.IIIIIIIII!)

:

DEBITS TO INDIVIDUAL ACCOUNTS
August

August

Inc. or
Dec.

July

1926
Austin ..._......._......$ 14.692
Beaumont .............. 22,109
Corsicana .... ___ ....
6,472
Dallas ................ _.. 185,910
EI Paso ............._. 27,564
Fort Worth _.._._ 88,988
Galveston .. _.. _...... 46,795
Houston .... ___ .... 146,994
Port Arthur _.......
9,160
Roswell ............. _...
3,824
San Antonio ........ 42,881
Shreveport _.......... 87,964
Texarkana ._.........
9,639
1'ucson _..................
7,661
Waco ....................... 14,588
Wichita Falls ........ 81,197

:
:

1926
$ 15.899
16,282
6,741
168,769
27,479
67,987
87,088
186,542
8,701
8,260
85,684
86,590
9,165
7,209
14,804
25,956

- 7.6
+85.8
- 4.0
+10.2
+.8
+81.0
+26.8
+ 7.7
+ 5.8
+17.8
+20.2
+ 8.8
+ 5.2
+ 6.8
- 1.8
+20.2

1926
$ 16,889
19,895
6,242
198,105
28,456
90, 848
40,887
189,984
9,859
2,684
40,087
40,4 01
10,170
8,494
14,104
35,721

Total, llth
District•......... $696.888

$618,056

+ 12.8

$69 6.721

m
..

Inc. or
Dec.
-10.1
+11.1
8.7
- 3.7
- 8.1
- 2.0
+15.9
5.0
- 7.1
+42.5
7.1
- 6.0
- 5.2
- 9.8
8.1
- 12.7

+

+

+

+

None :

.,IIIIII ..... III ..... IIIIIIIIIIIII ...... IIIII ..... IIIIIIII ...... IIIII ... 1I1I111111 •• ,1111 .... " "11 .................

Acceptooce
Mar/eet

0

The p ast mO'nth witnessed a further large
increase in the vO'lume O'f acceptances executed by accepting banks in this district.

5

Acceptances O'utstanding O'n August 31 tO'taled $3,784,417.19,
as . ~O'mpared to' $1,926,055.00 O'n July 31, and $2,168,032.70
on August 31, 1925. The amO'unt O'f these acceptances executed against impO'rt and export transactiO'ns rO'se frO'm $1,213,255.00 O'n July 31 to' $1,591,634.09 O'n August 31, while
thO'se based O'n the dO'mestic shipment and stO'rage O'f gO' ods
increased frO'm $712,800.00 O'n the fO'rmer date to $2,192,783.10 O'n the latter date.

Condition of
Member Banks
in Selected
Cities

RepO'rts frO'm member banks in selected
cities disclO'sed a slight decline in investments during August but a substantial increase in lO'ans.
Their investments in
United States GO'vernment securities de·
clined $1,769,000 but this was partially O'ffset by an in·
crease O'f $1,307,000 in investments in O'ther securities. LO'ans
secured by GO'vernment and cO'rporate securities reflected
a decline O'f $1,828,000 but cO'mmercial IO'ans shO'wed an
increase O'f $6,468,000, making a net gain O'f $4~ 640,000 in
tO'tal IO'ans. The net demand depO'sits O'f these banks rO'se
$1,532,000 during the fO'ur-week periO'd but time depO'sits
declined $557,000. Their bills payable and rediscO'unls with
the Federal Reserve Bank amO'unted to $12,823,000 O'n Sep·
tember 1, as cO'mpared to' $6,875,000 O'n August 4, and $3,012,000 O'n September 2, 1925. The ratiO' O'f IO'ans to' net
demand depO'sits was 93 per cent O'n September 1, as
against 91 per cent O'n August 4, and 34, per cent O'n September 2, 1925.

'PIII ••• I ••••• I ••••• I.I.I ••••••• I •••••• I •••• I ••• II ••••• 11.1111 •• 11 •• 1.111111 ••• 1 ••••• 1 ••••• 111.1 •• 111 ••• '.11 ••••••••••••••••• , ••••••• I!II.I.III.I.III.III •• II.I.,1111111"""'111""1'1"'1'111"""'1'11'1"11111'1' •• I •••• 'IIII.I.IIIII •••• IIII'.II •• I ••

~: i}~s~~e~~riti:r;!!'~ed~~~~~::::::::::::::::::::::::::::::~:::::::::::::~::::::::~:::::=:::::::::::~:::::::::::::=::::::::::::::
8.
4.

6.
G.
7.
8.

9.
10.

11.
:

All other stocks. bonds and securities owned_ .............................................. __........................
Loans secured by U. S. Government obligations....................................................................
Lonns sccured by stock. and bonds other thnn U. S. Government obligations................
All other louns ........................... ,............................................................ ..........................................
Net demand depos its .............................................................................. _..........................................
1'ime deposits.......................................................................................................................................
Reserve with Federnl Reserve Bnnk ............................................................................_................
Bills payable und rediscounts with Federal Reserve Bank .............:....................................
Rutio of loans· to net demand deposits ....................................................... _............................... .
·Loans include only items 4 und 6.

Sept. 1. 1926

Aug. 4. 1926

$

$

61.425.0~~

24.480,000
8,983.000
69.609.000
288.874,000
255.440 .000
99,105.000
27,201.000
12,823.000
93 %

58.194,O~g

rn

Sept. 2. 1926

23.173 ,000
4.409.000
71,011.000
227.406,000
253,908,000
99,662,000
27.361 ,000
6.875.000
91 %

$

50,274,O~g

22.137.000
8,182,000
77,595,000
209.081,000
258.901,000
94.660,000
28,425.000
8.012.000
84 %

Gl I IIIIIII ... III ...... 1 ................ II ..... ' ... I ... II .. I'IIIIII ... I ..... IU •• 11I1111111111111111 1 11111111111111111111 " "'''11111111 .. 11 .. 1111 .. 11 .. 1111 .. '111"111111.1111111'1 ... 1.1111111111111111111 ........ "111111 ....... 111 .. 1......... 1 .......... 8

RepO'rts from 97 banks in this district which
O'perate a savings department, shO'wed that
the savings depO'sits O'f these banks O'n August 31 amO'unted to' $109,686,432 which was 0.6 per cent

Savings

Deposits

greater than O'n July 31, and 7.1 per cent greater than O'n
August 31, 1925. There were 253,730 savings depO'sitO'rs
O'n August 31, as cO'mpared to' 250,518 O'n July 31 and 237,418 O'n the last day O'f August last year.

~11I11I .... IIIIII .... III1I1III1I1.I.III.II .......... IIII1 .. I.'II ••• ItIlIlU ........... .... 111111 ..... 1111111111111.1111111111'111'.1· '.1111111.1 '1 111111.1'1'11111 1 11111.11111111"" .. 11 .. 11,," .. 1111111111""11111'111'111".1'1"',,"11111111'111111'8
E
SAVINGS DEroSI'I'S
§

~: ,

Number of
Aug. 81. 1926
Aug. 81 , 1925
RePOrtin/lNumber c,f Amount of Number of Amount of
Banks
Savings
Savings
Snvings
Savings
Depoeitors Deposits Depositors Deposits

1~;!-!;!!'11-~-I~I~:0= I !IIIII :IIII!III !IIIII

Inc,
or
·Dec.

July 81 , 1926
Number of Amount of
Snvings
Savings
Depositors Deposits

:1111:111:11 !IIIII

Tc.tnl... ...................................................................._
97
258,780 $109,686.482
287,418 $102,418,249
+ 7.1
260,518
2 banks in Beaumont. 12 bnnks in Houston and 46 banks in "all other" reported the number of savings depositors.

~ · Only

Gl,tl'I •• I.I.I •• 'III.I.I ••••• I' ••• "'I'I.".".,., •• , •• "'1111'1'11"'1"'1111111"1'1'1'111"111'111"'11111"111'111"

:11.1111111
$108.985.869

I~:.

D

•

ec.

U
+

.6

:

'1111'111"""'11"11111"'11'111111""11.'111' •• 11111111 •• ,.,1.11.11.11111,.' ••• 11,1111,"""1'1'1.'11111111,.11,.1.,.111 •• 111"8

Zeposits oft
The depO'sits O'f member banks in this disember Banks trict O'n August 25 amO'unted to' $749,74,0,000 which was $5,307,000 less than O'n July
2~ and $9,034,000 less than O'n August 25, 1925. The declIne O'ccurred in the net demand depO'sits O'f these banks
as their time depO'sits shO'wed practically nO' change. The

explanatiO'n fO'r these declines is fO'und in the fact that the
heavy early marketing O'f cO'tton in 1925 caused a cO'nsider..
.
.
A
1
h
able nse. m depO'slts durmg
ug~st ast yea~, w ereas,
further WIthdrawals were necessary m August tlus year due
to' the lateness O'f the cO'ttO'n crO'P.

MONTHLY BUSINESS REVIEW

6

P

tea

"Ii

, . , 4 .. 11111 .. 111" .. "11 ........ 11111.111111111 .... 111111111111111111111111111111111 .. 111111111111111111111111111111111111111 ... 1111'.1111111.1111111111111.. 1111111111111 ...... 1111 .. '1111111 ................................ 11 ......... 11111 .. 11 ....
I

"PT'::7: m'CO~N:':ATESF.,. W.'"

1::::::.

Rate charged customers on prime commercial paper such
as is now eligible for rediscount under the Federlll

R~t!s":h:rg!dt oii"'i~a;;S"'td" ~ther" bankS;-'~ccu~;;;Cby" biils

4'1..-6
5

§:

current collateral (not including loans placed in other
markets through correspondent banks) :

\i!) ~r:::n~. . ::::::::::::::::::::::~::::::::::::::::::::~~:::::::::::::::::::;:::::::

§

I ::~. :~. ::::;::~~;~=~::~~~:~;~~~:~~:::;:~~~;:~;=~;~~~:~

8
8

5.6
6-6

6-6

5 ]1..-7
6-6

6-8

5

I.:.:::::

5-6

6-7

6-7
6-7

§ R!~:~~a~~",.,;s···~·e~~·;cd···b·;··j;~i;;;,-e··~·i;;-~k··C~·~i;·~;;ge···;;;.-·;;ihC·,:

Do:: ~ ::. A ;. W~
....

'II'''~
:

8

5-~

6J

§
§:
6-8
6-8

t~

6-6
6-6

6-8
6-8

t~

6-7
6-8

t~

§

:~,:,,,1

[!1 ..... UIlIlIIlIIlIlIlIIlIIIlIIlU .. IIIIIIIIIIIIIII .. IIIIU' ... IIII .. UIl ...... tlll ... 1111111111111111111 .. 111 .. 1111111 1....................... 111111111111 ............... 1.. 1.... 1... 111111 ........ .,1 IIII ..... IU ...................... II II 1,,111.
:

ro

Operations of
the Federal
Reserve Bank

A further rapid expansion in the demand
for Federal Reserve Bank credit occurred
during August. This heavy demand for
funds was due largely to the lateness of the
colton crop and the activity of business and industry. Federal Reserve Bank loans to member banks rose from $18,266,258 on July 31 to $26,380,617 on August 31, or a net
,359. Loans on the
increase during the month of $8,1141
last day of August not only reached the highest point for
the CUl'l'ent year but the highest since August 1923. Since
the first of September, loans have fluctuated within narrow
limits, averaging about $25,000,000. There were 364 banks
owing the Federal Reserve Bank on August 31, as compared to 34,3 banks on July 31, and 249 on August 31, 1925.

(!JUIUIIIIIIIII IIIUII'IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII"" ...... II 1I1I1 .. IIUIlIlIlIIU .... IIU ..................... I .. :

§

E

EMBER BANKS

~

~
~

§

I

;

7

I
I

~I

~I
~ :
:

E
:

§

E o

t§
:

E

The total volume of bills held by this bank rose from
$27,525,242.91 on July 31 to $37,84,3,510.33 on August 3],
distributed as follows:

m·UIlIlIIl ........... U ..... UIl ......... 11111 ....... I .. I ....... UIlIl .............. I .. . ."11111 ........... 11 ..

IIIIS

Due to the seasonal demand for currency the actual circulation of Federal reserve notes rose from $37,939,115 of
July 31 to $41,701,130 on August 31, or a net ~ncrease 0t_
$3,762,015. The daily average of reserve depOSIts amoun 5
ed to $55,908,146 in August, as compared to $56,185,4,2
in July and $55,579,582 in August, 1925.

Member bunk collateral notes sccured by U. S. Government
obligations ....
....... . ......... ............. .. .............................. $ 4.359,400.00
Rediscounts and all other loans to member banles ..... ................. 22.021.217.17
Opcn market pnrchaocs (Dunkers' Acceptances) ......._
................. 11,462,898.16
To tal bill. held ..........._
....................... _ ...................................... $87.848,610.83

FAILURES
A substantial improvement in the business mortality rate There were 50 defaults with a combined indebtedness .of
was noted during August when the number of defaults and $682,086, as cOlupared to 72 failures in July with liabilitIes
the amount of indebtedness involved were less than in either aggregating $969,986, and 66 insolvencies in August, 1925,
the previous month 01' the corresponding month in 1925. owing $1,039,] 33 .
. PETROLEUM
The production of crude oil in the Eleventh Federal
Reserve District which has been steadily gaining since May
this year, reflected a still further increase during August.
There were 17,552,483 barrels of oil produced during the
month, as compared to a production of 14,292,770 barrels
in July, which represents the largest production of crude
oil for any month since November, 1923. Although there
were fewer wells completed this month than in July, yet initinl production increased approximately 24,000 barrels. Of
84.9 completions in August, 558 were successful yielding an
mlll" •.

initial flow of 217,230 barrels which compared to 183,671
barrels of new production contributed by the 601 producers
obtained from lhe 1,035 completions in July_
All Texas fields showed increased production during the
current month their combined yield amounting to 15,798,.350 barrels, a; compared to 12,456,350 barrels in July. ThIS
represents an increase of 3,342,000 barrels in total output
and 107,806 barrels in daily average produ~tion. The Pa1i
handle region of the North Texas area contmued .to lead ~ h
fields in drilling operations and in total productIOn. WIt
~

tltll"I.I"'I""'II"""lt"'II"1111111111"'11111111111"111111111111'11111111"1"'1111"'1111 ••• 11' •• 1111111111111111111111111 ••• 1.1111'1111.111111.'.11'111 •• 11111"'11.1"11111111111"'1"'1111.111.11 • • 111 ••• III ••• III.I ••••• I ..... I.I ••

§

§

§

OIL PRODUCTION
August

I~ !~;~ ~ \~-: !:!~;:~:!~=~)j;~-:
~

Total, Dislrict.......................................................

July

§

Increase or Decrease

,: ~!: n:f;:!f t~ n:!tf ~ . ~("' ,~!:l:! I
TJ\1:::1

17.552.483

666.209

(!J •• IIlIIt." ""It'" I U.11I11 JlIII1III1III1I1.IIUIII1IIIIIIU lit 111111111111111111111111111'11 1 1 t 1IIIIIII l t," 111,.,,, "': 11 111 "

14,292,770

46l.O67

Inc.

8,2(j9,718

Inc.

105,152

111111111111111111111 It II., '" t i l ' II '111111111'" 1111111111'" 111111"11111111"11 .. IIIU'" II IIIIIIIIIIIII.II.IIUU'"

~
•

MONTHLY BUSINESS REVIEW
t~e c?mpletion of 117 wells of which III were producers
Yleldmg 73,690 barrels of new production, the total output
r?se to 2,898,870 barrels for the month. The Spindle top
fIeld, whose yield increased from 600,780 barrels in July
to 2,14.1,325 barrels in, August, was responsible for the
h~aviest monthly output in several years for the Gulf Coast
dIstrict. Total production of crude oil of the North Loui·

7

siana area reflected a further decrease during the month.
With the exception of a reduction of twenty cents per barrel in the posted price of
Texas Coastal Grade "A" crude, prices of
crude oil at the various fields in this district remained stationary between August 9th and September 12th.
Crude Oil
Prices

~'"III''I''''''''''''''''"IIIIIIIIIIII''"IIIII.''I''"IIIIIIIIIIIIIII''IIII''I1''''''' ... UIlIlI ... IIIIIIU .... IIII .. [EJ
AUGUST DRILLING RESULTS
Com·
pletions
North Texns .................... 424
~entral.West Texns ...... 208
East-Central Texas ........ 31
.rust Texas ._...................
5
Fleld-

S~~~hw~~:s~~a8··:::::::::::: ~~

Gas
Wells
8
8

TEXASAug. 81. Aug. 28,
1926
1925
Texas Coastnl (Grade ..A .. ) ................................_.............. $1.40
$1.50
North ond Central Texas (44 g r. and nbove) ~ _ ___ ____ 8.67
_____
•
Texas Panhandle (89 gr. and above) ............................... 1.90
·Prices for August 81. 1925, not available on a comparable basis .

FailInitial
ures p 'roduAlt4on
115
86.129
80
14.919
21
17.220
3.
30
82,980
17
12.978
21

~~

"2

784
65

518
45

14
11

257
9

214.203
8,027

July totals. district ........ l.085

GOI

39

895

183.671::

Texas Wildcats .._ ... _...

21

Total. Texas ....................
North Louisiana _ ... _
:

Produoera
806
115
10
1

CRUDE OIL PRICES

LOUISIANJ

Aug. 81, Aug. 28,
1926
1925
$2.20
Caddo (88 gr. and nbovel........ _ ._..._ ..........................$2.45
Bull Bayou (88 gr. and above) __.... __ ...... _ ........... _ 2.25
2.00
Homer (85 gr. and above) .......... _ _._........ _ ............. 2.20
1.96

~ ...
mg:ys~ilb~u~~~..':.~.'...~~~...~~~~~~.:===:=:=::=~.-::::=::=:::::::: Ug

LUMBER
The activity of pine mills in this district during August
remained at about the same level as in July. August pro·
duction of lumber was 10 per cent below normal and ship.
ments were 6 per cent below normal production which compares to the same percentages, respectively, in July. New
orde~s received at the mills were 98 per cent of normal prodUchon, as compared to 95 per cent in the previous month,
While stocks on hand at the end of the month reflected a
decline of 2 points from those held at the close of July.
Unfilled orders on the books of 52 reporting mills on
August 31, amounted to 69,776,882 feet of lumber, as com-

~:~~ m

I ••••• IIIIIIII.I.I ................ I.I ••• I ••• I.III.I.1.1.111.1 •••• 11111.,1111111,11111,11""11,111.,11".1.,.III., • •

(Oil statistics compiled by The Oil Weekly, Houston, Texas.)

Gl·ttlllllll ••• I ••••••• IIII'I ••••••••• I •••• IIIII •••• I ••• 111111,.,1.1.111.111111.111111111,.,1'1"' ••• '1'1 •••• IIIIIIII.IIIS

pared to orders for 65,948,253 feet recorded at 51 mills on
July 31.
[;].,1111111111111.111.1.111111111111 .. 111111.1111111111.111111111 ....... 1 ............. II.II ........ III ..... UUIlIIl ....

::

AUGUST PINE MILL STATISTICS
Number of reporting mills .....................................
52
Production ................................................................ 105,519.277
Shipments ............. _........................................... _ .... 109.448,692
Orders .................................................... _ ................ 114,207,080
Unfilled orders. August 81.. ..............._................ 69,776,882
Normal production ........................................_ ..... 116.926,917
Stocks, August 81.. .................................................. 251.692.622
Normal stocks .................... _ ................................. 828.988,785
Shipments below normnl production .............. _ .
7.478.225
Actunl production below normaL........................ 11,407.640
Orders below normnl production ........................
2.719,837
Stocks below normal ........................................... 77.2D6,118

m
::

feet
feet
feet
feet
feet
feet
feet
feet= 6%
feet = 10 0/0
feet = 2%
feet=230/0

BUILDING
A further slowing down in the volume of building at
prinCipal cities in this district was in evidence during August, and for the first time since July, 1925, a decline was
registered over the corresponding month of the previous
year. The valuation of permits issued at these cities aggregated $7,246,065 in August, as compared to $7,860,709 in

July and $9,519,535 for August of last year. For the eight
months of the current year 2] ,128 permits have been issued
representing buildin:; operations valued at $75,212,638,
while during the same period of 1925 there were 21,968
permits granted having a total cost of $64.,990,766, or an increase of 15.7 per cent for the year.

~111I11I11I .. UI .. ,III .. 'II .. I •• II ... 'III1I1 ... II ... II.IIII ... II'"IIII"III1I1I •• .. 1111 .. 111111111111 ...... 111111' .. ' ..............1'1.111.1111 .. 1.1111111111.111.11111111111111111111111.11111111111111111111111111.,111111"11111IIIIIIIIIIIIIIUII •• n'[!J

I:::

~UStin ..................
Deaumont ............ : ",allns ....................
=: Fl Paso ................
__
G"rt Worth ........ _
aalvcston ............ _
E Pooruston ....... _.......
: Sant AArthur............
: . Sh
ntonlo ........
: Wreveport ............
: W!lco ................... § Ichlta Falls ........

~ 'l1otal
L!.I··... u ......

................

No. '\~r.:~:;~

N:~~~~ [;'o~LD:G ;~~;, [;:;.~' No. "::::::,o~·:. [~:'.."o" [; ;.~'

56
185
893
51
235
258
491
102
288
288
42
161

202,848
180,249
1,547,871
197,820
984.788
209,292
2.178,579
108.509
604,480
478.555
97.010
516,569

81
IG8
865
55
212
815
601
111
825
255
58
141

$ 401,827
120,785
1.496,758
142,885
556.855
186,446
4,460.884
61,051
881,152
715.274
198,610
408,118

+
+
+
+
+
+
+

49.6
7.9
8.4
89.0
77.0
58.4
51.2
69.5
27.8
88.S
49.9
28.1

25
158
275
41
245
5208'11

2.880

$7,246,065

2,582

$9.519.535

-

28.9

2,284

109
282
280
25
117

$

588.979
85,190
786,585

+181.6
- 11.4
+ 61.2
+396.3
- 27.1
- 81.5
+ 12.4
116 '.11
7
- 11.8
+ 13.9
- 84.3

$7,860,709

--:"-7.8

147,074
960.288
39,855
1,851,508
1,128,880
1.987,618
78298'.179620

±.

858 $ 959,740
1,860
1,164,115
2,984 18.240.748
516
867,554
2,690 18.089,640
2.111
2,598,865
3.967 20,704,627
979
1,009,291
2,388 10,102,284
2,075
3,093,508
822
902,875
1,383
7,4 84,4 01

~28

$75.212,688

857 $ 998,142
1,842
1,156,040
8.886 19.898,92 9
524
1,188,248
1.845
6.207,122
2.314
1,286,054
4,426 17,471,462
1,078
828,261
2,622
6,695,797
1,998
4,169.969
510
1,554.526
1,071
4,101,221

8.4
+
.7
- 81.7
- 23.4
+110.9
+ 101.7
+ 18.5
+ 21.9
+ 50.9
- 25.8
- 41.9
+ 82.5

21,968 $64.990,766

:,::1

+ 15.7

'.II .... IIII .. ItIIIlII .......... III .... II .. I ..... II ........................ 11.1 ........... 111111 ........ .," ........ "111 ....... 1111 ............... """ .. 1111 ......... ' ....... ,11111 ....... 11111111 ......... 11111111 .. 111111111'1111 ••

..
:
~"
..

~
::
:
:
::

E

E
,1.1. 8

CEMENT
The August production of Portland cement at Texas mills increased, being 6.5 per cent more than in July and 9.3 per
reflected a decline as compared to the previous month and cent greater than in the corresponding month of last year.
to August of last year. There were 440,000 barrels of Due to the heavy shipments, stocks on hand at the close of
cement produced during August, as compared to a pro· August declined 11.4 per cent from those held at the end of
dUction of 459,000 barrels in July and 481,000 barrels in the previous month but were 59.5 per cent larger than on
August, 1925. Shipments for the month were substantially that date last year.

MONTHLY BUSINESS REVIEW

8

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E

PRODUCTION. SHIPMENTS. AND ' STOCKS OF PORTLAND CEMEN'li (Barrels)

E

I §hf:~~~~n f~~JeT:a~~iii;::::: : : : : : :~~

E Stocks at end of month at Texas mills._

August

August

Inc. or

July

Inc. or

+59.5

472.000

:
Eight Months

Inc. or

- 11.4

1~r8gg tgr~g ig~~ 1~yggg ~eh ~:~~r;~~ ~W;:~~~ D~i~
418.000

262.000

~

I
:

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SUMMARY OF NATIONAL BUSINESS CONDITIONS
(Compiled by the Federal Reserve Board ns of September 25. 1926)

Industrial actIVIty and distribution of commodities continued in large volume in August at a level higher than a
year ago. The general level of wholesale prices receded
further in August, reflecting price declines for agricultural
commodities.
PRODUCTION

The index of production in basic industries, which is adjusted for the usual seasonal variation, declined slightly in
August, but this decline was accounted for by the fact that
there were five Sund.ays in August as against four in July.
Textile mill activity and production of steel ingots, zinc,
and petroleum increased, while the output of pig iron, lumber, coal, copper, cement, and sugar was smaller than in
the month before. Automobile production increased considerably in August and was larger than in any month since
April. Factory employment and payrolls, after declining
in July, increased in August, as is usual at this season of
the year. Building activity, as measured by contract awards
in 37 states east of the Rocky Mountains, was in larger
volume in August than in July or in any other previous
month with the exception of August, ] 925. In eastern and
southeastern states the volume of building was smaller in
August than a year ago, while in the middle west contracts
awarded were larger. Contracts for residential structures
were smaller than last year, while those for industrial builclings and for public works '::md public utilities were substantiall y larger.

year, while those of groceries and hardware were larger.
Inventories of department stores increased in preparation
for fall trade, but this increase was less than is usual at
this season, and at the end of the month stocks were smaller
than a year ago. Freight car loadings in August continued
higher than in the corresponding months of previous years,
and for the weeks of August 28 and September 4 exceeded
all previous weekly records. Loadings of grain continued
large and shipments of merchandise in less-than-car-load
lots, miscellaneous commodities, ore and coke, were considerably larger than in the corresponding period of previous years.
PRICES

Wholesale commodity prices according to the index of
the Bureau of Labor Statistics, declined by over one per
cent in August reflecting largely price decreases for grains,
livestock and meat products. Prices of clothing materials,
fuels, and metals increased between July and ' August, while
prices of cotton, wool, sugar, building materials, and rubber showed little change. In the first half of September
prices of grains, cattle, sugar, bituminous coal, and coke
advanced, while prices of raw cotton, silver, and bricks declined.
BANK PRICES

Increased demand for bank credit in connection with the
harvesting and marketing of crops and autumn trade together with an increase in loans on securities was reflected
in a considerable growth between the middle of August and
the middle of September in loans of member banks in leading cities. The banks' holdings of investments also increased though there was a decrease in investments at banks
in New York City and total loans and investments on September 15 were larger than at any previous time.

Crop conditions improved in August, according to a statement by the Department of Agriculture. September forecasts of yields of corn, barley, hay, tobacco, and most fruit
and vegetable crops were above those made in August,
while expected yields of oats and spring wheat were slightly
less. A cotton crop of 15,810,000 bales was indicated on
the basis of the condition of the crop at the middle of September. The crop, however, is later than last year and
The volume of reserve bank credit increased by about
ginnings up to September 16 amounted to only 2,511,000 . $90,000,000 between August 18 and September 22, partly in
bales, compared with 4,282,000 bales prior to September response to scasonal dcmands for currency. Discounts for
16, 1925.
member banks rose in September to the highest figure for
the year and acceptance holdings also increased while
United States securities declined by about $55,000,000.
TRADE
Volume of wholesale trade and of sales at department
stores increased in August and retail sale3 were larger than
a year ago. Stocks of dry goods and shoes carried by
wholesale firms were smaller at the end of August than last

Money rates continued to rise in September. Rates on
conunercial paper advanced by one-fourth per cent to 4.1
/z4%, per cent and rates on security loans also averaged
higher than in August.