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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 (31111111111111111111111,.,11111111111.111111111111111.11111111111111111111111111111111111111111111111111111111111 •• 11.".11' ••••• ,11111 •• 1111.,1111111.111111, ••• ,1111111 ••• 1.,111.11111111111'1"'.,111111111,.11111.1111II,tllllllllll •• IIIIIIIIIIIII.I.11! 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 : (!J ••• III •••• IIII.,IIIIIIIII •• IIIIIIIIIIIIIIIIII •••• ,III111111111111111111111.,11111111'111111,1111111,.1.1",111.11 •• 11'"111111111 •••••• 1•••••• 1•••• 1111111.,1111 •• 111, ••••••••• 1,.111.111, ••••••••••••• 11.11.11 ••• 1.,1111111111111111 •• 11111.,1 •••• 111 •• 110 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.