The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FE lC JC " _E "JE _E *)E )E _E " MONTHLY BUSINESS REVIEW ] OF THE ] FEDERAL RESERVE BANK OF DALLAS c. C. WALSH Chairman and Federal Reserve Agent , .. 'r CHAS. C. HALL-W. J. EVANS (Compiled September 15, 1930) ,,. ,,. ,. 'E ,,. ,. I AU::,.. r.d~.'1 R...~:. A ' ' = .... j( ~lume 15, No.8 Dallas, Texas, October 1, 1930 This COpy is released for pubIicntlon In mornlni papers September 29 DISTRICT SUMMARY THE SITUATION AT A GLANCE Eleventh Fcderalllilservo Distriot Change Cram July August BIII)~ debits to Individual accounts (at 17 OOIUes>. .. . ... . .... ............ .......... . ,,!!'!"tment store aales .......... . . . .. . ..... . ' ......rve back loans to momber banks at ODd of nmonth . ......................... . ... . .. . B~.ve bank ratio at ond of month ... . ..... . I 109 permit valuation at largor con tors .. . . Co::::al fa!lures (~u,,!~r) ........ . ..... . . 0 '1 od a allures (hablhtiOll) . ..... . ...... . r Pbe uotioD (barrela) ...... .. ....... . .... . m I r ordors at pine milia (per oont oC norm. produotlon) ...... .. ..... ............ . C:: x:. $730,302,000 $ 14,876,824 63.8% $ 7,160,706 $ 48 800.026 26,004,360 - 4.6% + 11 .3% + 16.7% - 3.0 points + 34.8% + 20.7~ + 16.379 - 60% - 1.0'10 1.0 points mll •••••• I ............. I ••••• I ••• II •• III ••••• II ••••••••••••••••••• 11111,.11 ••••••••• 11 •• ,.11 •• ' ••••••••• 11.1 •• 1.1.1111118 A further reduction in the prospective yields of principal cr~ps, together with the persistence of low agricultural pnces, has had a noticeable effect upon business and industry in the Eleventh District. The continuance of the ~evere drouth during August left a large area of the district n a c~itical. ~ondition and .the scattered rai~fal~ recently has . een lI1suff I.CIellt to matenall y alter the SItuatIOn. AccordIng to the September 1 report of the Department of Agriculture, the production of major crops in much of the Northern half of Texas Southeasoorn Oklahoma, and North LOUisiana will fall ~onsiderably short of that in 1929. In many instances, the situation is aggravated by the fact that the poor condition this year is a culmination of a series of po?r crop years. In those sections where good crops are beIng harv>ested, the low prices being received for products are materially reducing returns from the current cr~p. ~anges deteriorated rapidly in the drier sections and wIllIe l~estock held up well under the circumstances, they are beg.Inning to show the effects of poor ranges. Market prices for hvestock have stl'engthened somewhat since the middle of August, but trading on the ranges is at a standstill. Reflecting the poor agricultural situation, the ?emand for merchandise continued sluggish. While sales ID most reporting lines of wholesale trade reflected a seasonal inCl'ease over July, they fell considerably short of the Augu~t, 192?, volume. Reports indicate that retail~rs are s.tl~l bUYIng very sparingly and are keeping inventones at a mIDI- b mum. Seasonal liquidation has improved collections to some extent; yet they are somewhat spotty. Sales of department stores in larger centers during August exceeded those in July by 11 per cent, but they showed a decline of 8 per cent from the corresponding month last year. While the number and liabilities of commercial failures were slightly larger than in July, they compared favorably with a year ago. The usual demand for funds for use in completing the cultivation of crops and the movement of cotton was in evidence during August. f.ederal reserve bank loans to member banks rose from $12,744,365 on July 31 to $14,875,824 at the close of August, but after the first of September there was a gradual liquidation of borrowings which carried these loans down to $13,338,877 on the 15th of the month. On that date a year ago, Federal reserve bank loans amounted to $4,5,855,522 due principally to the heavy borrowings of reserve city banks while most of the funds this year are being absorbed by country banks. The combined daily average of net demand and time deposits of member banks reflected a further seasonal decline of $12,156,000 and were $4,0,191,000 less than in August, 1929. There has been a slight shading of interest rates charged customers by large commercial banks, and the Federal Reserve Bank of Dallas 12 reduced its discount rate from 4 to 31 per cent, effective August 9. The continued strong demand for short term investments was evidenced by the heavy subscriptions to the September 15 issue of United States Treasury Certificates of Indebtedness bearing 2% pel' cent, which amounted to $50,072,000, against which allotments of $21,200,000 were made. Some improvement was noticeable in the construction industry. The valuation of permits issued at principal cities in August reflected an increase of 35 per cent over the previous month, but was 15 per cent lower than in the same month in 1929. The production, shipments, and new orders for lumber were smaller than in either the previous month or a year ago. The production and shipments of cement declined from July but production was greater than in August last year. BUSINESS The low prospectiV'e returns from agriculture, due both to the smaller production resulting from the drouth and the low prices for agricultural products, continues to affect adversely the demand for merchandise in wholesale chan- This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) MONTHLY BUSINESS REVIEW 2 nels. Whil'e husiness in every reporting line except farm implements reflected a seasonal improvemen t over the previous month, sales in all lines were substantially smaller than in the corresponding month of 1929. Due to the uncertainty regarding consumer demand and the continued weakness of commodity prices, retailers are purchasing in small lots and are making re-orders as the need for additional merchandise arises. Reports indicate that merchants are holding inventories to a minimum. While collections are somewhat spotty, they showed an increase over July in all reporting lines. Wholesale dry goods firms in this district reported the usual heavy increase in demand during August, coincident with the opening of the fall buying season in leading centers, but the volume "vas considerably smaller than in other recent years. Sales, which were 82.6 per cent larger than in July, reflected a decline of 41.8 per cent from August, 1929. Business during July and August averaged 42.5 per cent lower than in the same two months a year ago. Merchants ~ have been buying in small quantities and making frequent re-orders as consumer deman d rna kes its appearance in order to keep inventories at a low level. Reports indicate that business in September has been holding up fairly well. Stocks on hand August 31 were 27.5 per cent smaller thaII a year ago and showed a decline of 4t.1 per cent from a month earlier. Cotton goods prices have reflected a further weakness in sympathy with the trend of the raw cotton market. CoUections during August were in larger volume than in July. The sales of agricultural implements by wholesale firms in this district dropped 16.6 per cent from July and were 59.9 per cent below August last year. While the decline was due in part to seasonal influences, the small demand prevailing at the present time is traceable to the poor returns from agriculture which are causing farmers to hold purchases to absolute necessities. Collections were slightly higher than in July. Although the demand for drugs at wholesale was 9.7 per cent larger in August than in July, it was 21.1 per cent less than in the same month last year. Eight of the ten reporting firms showed heavier sales than in the preceding month, due to seasonal influences, but all had declines from last year both in August and combined J ul y-August sales. Collections reflected a slight increase and were in the same proportion to outstanding accounts as they were last month. Wholesale hardware firms in the Elf'venth District reported an increase in sales of 8.3 per cent ov'er July, but their August volume was still 31.0 per cent below that of 1929. Stocks at the end of the month were 9.3 per cent larger than a year ago. As compared to the previous month, collections reflected a slight increase. SaJ.es of groceries at wholesale in this district were 6.8 per cent larger during August than in July, hut reflected a decline of 12.0 per cent from the same month a year agO. The demand, which is being affected by poor crops and low agricultural prices, appears to be sluggish thloughout the district. Collections showed an improvement OVf'r the previous month. The trend of prices continued downward. I!l CONDITION OF WHOLESALE TRADE DURING AUGUST, Percentnge of inoronso or decrease in: Groceries ... . . .. . . Dry goods .. . .... . Farm implomenta .. Hardwaro ........ Druga . . . ........ . Tota~~:~t,(;~;~~:~!~~red Net Sales NetSules Stocks Rutio of 001100August. 1030 July I to date August, 1030 tion. during Aug. oompared with compared with oompared with to aooounta ana Aug. July samo peried Aug. July notes ou"'t.anding 1020 1930 Inst year 1929 1930 on July HI -12.0 + 6.8 - 12 .7 -12.0' +.5 63.4 -41.8 +82.6 -42.6 -27.6 - 4.1 23.4 -no.o - 16 .6 -48 .2 7.7 -31.0 + 8.3 -30.2 +'id + 2.0 38 .8 - 21.1 + fl .7 -18.9 - 18 .3 - 1.5 40.3 The demand for merchandise at retail in larger cities during August .reflected the usual summer dullness. The saloes of de· partment stores, while showing a gain of 11.3 per cent over the previous month, were 8.1 per cent less than in the corre· sponding month last year. The sizable increase over the previous month was due in part to widespread reduced price sales, which were featured during the month in an effort to clear out the stocks of summer goods. Sales during the first eight months of the current year averaged 7.6 per cent smaller than during the cOl'l'esponding period of 1929. Stocks on hand at the close of August reflected a seasonal increase of 6.1 per cent, yet they were 14,.8 per cent smaller than on August 31, 1929. The rate of stock turnover during the first eight months of the current year was 1.82 as compared to 1.87 during the corresponding per iod last year. Collections reflected a seasonal decline during the month. The ratio of August colloections to accounts outstanding on August 1 was 29.9 per cent as compared to 32.8 per cent in July, and 32.7 per cent in August, 1929. Retail Trade "'1 '1 . '1' 1111 11 1' 1 '1 1"11 1'1 1 '1 '1 11, 11 "" ",1 ", 1' 1, 1 1, 1'1,, 11 '1 11 ,' 11 ' 1 1111,11 1 1,.11 11 11 1111111111111111111111 11 11.11[;1 B~~IN.ESS. ~F.~EPAR~;;NT ST~;~.~th ~~:~~n sn _+ A~;t:.o~8niO ~;;~: Tot_=aI1~ i ~;riet with Auguat. 1929 ............. . ...••. August. 1930. compared with July, 1030....... . ... . . .. . . . .. .. . . ... .. ........ . ... January 1 to d.te eompared with same porind lost year........................ ... Credit Sales (Percentage): Auguat, 1930. comparen with August, 1929... ............. . ..................... August, 1 to compared with July. 1930.... ... . . .. .. .. ... .• . . . •.. .. •.... . ..... January 1930,date compared withsameporindlaat.voar.......... ... ..... ........... Stooke (Percentage) : Auguat.1930, compared with Augu~t.1020. ....... .... .....••. . ... .. ..•... ... .. . Auguat, 1030. oompAred with July. 1030.. .. .... ............ . .. ..•. ... •.. . ..•.... Stook Turnover (Rate): Ratoofatook turnover in AugUllt. 1920.......... .. ..... ....... ......•.... . •..... Rate of stock turnover in >\lIgual. 1930. ... . . . . . . . . . . . . . . . . .. . . . • . . . . . . . . . . . . . . . • Rnto of atook turnover January 1 to August 31. Ifl20 .. ... .. ... . .. .............. . . Ruto of stock turnover January I to August 31. 1930. . . . . . . . . . . . . . . . . . . . . . . . . . . . . Ratio of August oolleotions to accounts receivable and oulstanding August I, 1030..... . .. ..• +28.7 - 4.3 + 9.0 -13.2 - 4.4 - 11.3 + 1.2 +36 .6 -1.2 - 3.3 +17 .0 - 6.8 -20. 0 + .1 - 6.9 +10 .0 + 4.8 +.1 - 9.5 +14.9 -1.3 - 4.1 +18.6 - 2.7 -14.6 + 4.0 -16 .3 3.9 - 13.2 +10.5 -21.6 + 6.7 -11.7 + 6.0 - 14.8 + 6. 1 .23 .25 2.00 1. 92 27.4 . 17 . 10 1.61 1. 46 28. 1 .23 .20 2.05 I. 94 32.8 .24 .33 2.28 2.40 36.4 .10 .18 1.65 1. 54 20.3 .21 .22 1.87 1. 82 20.0 Insolvencies in the Eleventh f.ederal Reserve District, according to the report issued by R. G. Dun & Company, were more numerous in August than in the preceding month but were f.ewer than in the same month a year ago. There were ••' : • + + 0.2 - 6.2 rnlll l l1l1l1 l l1l1l1l1 l1 l1 ll1l1l1l1l1l1 ll1 l1l1l1 l l1l l l1 l l1lll1 l1 l1lll1 l l1 lll1l1 l1l ll l1ll1111 1111111 11 1 111 1 1111111111111111111 11 1 11 1111111111111111111111111111111111111 1111 1 11111111111 1111 1 1111 11 1111 1 11 11111111 111 1 1 111 1 111111 111 1 111111111t1111 1 1' l lI t1t1 Commercial Failures [!) loaD I!l III 11111 11111 IIII II IIII II IIIIIIUII III 111111 111 II IU UI II II III II II I 11 11 11 11 II 1111 III III II II rllil 11 11111111 II II IIHII illS [!] 11 1 1. 1 .111 1'1 11 11111, 11111 11 11 111 11111111 111 1,111 1 11 1 "11 11 1 11 111 1 111 1 1 1' 1 1 111 111 111 1111 11 11 11111111 1 11 1 11 11 111111 111 1 1111111 11" = . :1 . II fUUIIlI1I II 1111 11111 1111 III IfI 11111 1111 11111 11111 lUll II II If II 11 1111 1111 1111 11111 II III 1111 III II III U III IIIf1 111111 I :: . ' :::.E::: : · i j, i!J 48 failures during the month as against 37 in July and 50 in August last year. The indebtedness of defaulting firms during August amounted to $890,025, as compared to $765,4,20 for the previous month and $817,829 for the same month in 1929. MONTHL Y BUSINESS REVIEW AGRICUL TURE Crop Con- The conlinuance of the droulh durillg August in a larg'e area of Texas and Southeastern Oklahoma caused a subSlantial reduClion in the prospective yields of major crops and the situation became critical in portions of Norlhwesl and Northeast Texas, where the drouth was most severe. While some rain has fallen over much of lhis territory in recent weeks and will be benefi cial to la~e crops, a heavy general rain is needed to enable farmers to seed small grains fo~ winler pasturage. In New Mexico and Arizona, where rainfall has been generally ample, most crops have either held their own or have shown an improvement. While rains during the latter half of August benefited some crops in Louisiana, the indicated production of most crops on September 1 was considerably under the final yields in 1929. According to the report of the Deparlment of Agriculture, the condition of the cotton crop in Texas showed a further marked deterioration during August, being 53 per cent of normal on September 1, as compared to 61 per cent a month earlier. On the basis of the September 1 condition figure, the indicated production was placed at 4,321,000 bales, which represents a reduction of 175,000 bales from ~he August 1 estimate_ While the prospective yield this year s 381,000 bales larger than the 1929 production, it shollld e remembered lhat the yield last year was very poor. The pe~ acve yield in 1929 was only 108 pounds and this year a IS estimated at 122 pounds. The condition of the crop d~clined in all sections of Texas except West and South wah the most marked decline occurring in the North, Northeast, Northwest and West Central sections. The best condilion obtains in South and Soulheast Texas where a very Poor crop was raised last year. The Department of Agriculture stated that fruiting was slill slighlly more advanced ~han the average for the past five years and that boll weevil Infestation is reported considerably below that of the past three years. Colton has opened rapidly and prematurely in t~e ~rier sections. Due to the continuance of open weather, PICkl11g and ginning have made unusually rapid progress. The Bureau of Census reported that 1,120,44.1 bales had been ginned prior to Seplember J, as compared to 810,653 baIes last year and reached the highest t otal prior to lhat ~ate on record . The September 1 report placed the productIon of cotton in Louisiana at 64.9,000 bales, which is 17,000 bales greater than the August 1. estimate, but still considerably under the 809,000 bal'es produced in 1929. There was no change in the estimate for New Mexico and that for Arizona was redu ced 3,000 hales. The condition of the ~kl.ahoma crop declined to 42 per cell l of normal, which Indlcated a production of 925,000 bales or 167,000 bal·es less than the August 1 estimate_ I The d~y weather during August malerially affect~d the ate corn m Texas, Louisiana, and Oklahoma. Accordmg to the ?eP.temher 1 l'eport of the Department of Agriculture tbhe mdlcated production of corn in Texas was 83,232,000 ushels, which was 4.,896,000 bushels less than on August 1, nd compares with an aclual production of 86,127,000 I ushels in 1929. The Oklahoma crop was reduced 3,352,000 )ushels during the monlh and is 16,4.76,000 bushels under the 1929 crop. The crop in Arizona promises a larger yield than was estimated for the previous monlh 01' the actual production of a year ago. The estil11~te for New Mexico, Was 110,000 bushels below that indica led on August 1, and ditions 1 b 676,000 bushels less than the yield in 1929. The grain sorghum crops suffered rapid delerioration in all states allached to this dislrict except Arizona and the indicated production is considerably below that of 1929. The Texas crop was estimated at 4.0,572,000 bushels, which compares lo an aClual harvest of 4,6,920,000 bushels in 1929. The indicated yield of hay crops showed but liltle change durin'" lhe month but in every stale except Arizona the indicated yield is materially less than the 1929 production_ The production of sweet potatoes in Texas on September ], as reported by the Department of Agriculture, was 7,232,000 bushels as compared to an actual yield of 7,384,000 bushels in 1929. The crop showed some improvement during the month. The indicated yield for this crop in Louisiana was 5,590,000 bushels on September 1, as compared to 5,160,000 bushels on August 1, and with an actual production of 7,440,000 bushels in 1929_ The yield in Oklahoma was reduced 144,000 bushels during the month but the crop still promises a production of 90,000 bushels great·er than a year ago. The prospective production of peanuts in Texas, Louisiana, and Oklahoma is considerably smaller than that for 1929. The Texas rice crop l~flected a material improvement during August, the September 1 production being indicated at 8,4.05,000 bushels, as compared to 8,200,000 bushels on August 1 and an actual yield of 7,524,,000 bushels a year ago. Harvesting has proceeded under generally favorable conditions. Livestock A marked deterioration in the condition of ranges over much of Texas was caused by the conlinued dry weather during August and prospects for fall and winter grazing ape poor. Only a few favored localilies received an appreciable amount of moisture during the month. While some rain has fallen over a considerable area since Septemher 1, in most instances it has been insufficient to relieve the drouthy condition and a heav y general rain is urgently needed to revive pastUl~s and permit the sowing of fall grains to furnish winter grazing. The Department of Agriculture reported the condition of cattle ranges at 67 per cent of normal on September 1, as compared to 76 per cent a month earlier and a year ago. The condition of sheep and goat ranges was placed at 68 per cent, which represents a decline of 8 points during the month and 7 poinls from thal obtaining last year. Livestock have held up remarkably well under the circumstances but they ·are beginning to show the e1I'ects of the protracled drouth. The condition of catLle declined 4. points; that of sheep 5 points, and that of goats 6 points. On the other hand, liveslock and their ranges are in generally good condition in New Mexico and Arizona. Rains have provided sufficient moisture in lhese states except in portions of Southeastern New Mexico, where ranges are becoming dry. In New Mexico the condition of ranges improved 2 points and caltle and sheep 3 points. Stock water and feed supplies in these latter states are generally ample and prospects are fairly good for fall and wi nter pasturage. Throughout the district range trading has continued slow. ' Movements and Prices The August receipts of cattle and calves were considerably larger than in the previous month and the arrivals of calves were in exoess of lhose in that monlh of 1929. Sheep and MONTHL Y BUSINESS REVIEW 4 hog receipts showed a heavy decline as compared to both the previous month and the corresponding month last year. Livestock prices, after showing an almost steady decline for several months, developed some strength during the last half of August and the first half of Seplember. While the cattle market experienced an uneven trend, prices on most classes at the middle of September were higher than four weeks earlier. At the close of July, the best hogs were bringing only $9.00 but the market showed a steady advance during August and the top price reached $10.75 early in Sept·ember, which price has not been exceeded since the decline set in last fall. During the subsequent week, how' ever, the market declined somewhat. The sheep and lamb market developed some strength, but prices are still very unsatisfactory. The month's receipts were the smallest for any August in ten years. mll ll.I.,IIII' ••••••• 'II'.IIII IIII. I ••••• I •• IIII •• '.lf111111111111111111"'1111111111111111111"11111111111111111111111.8 COMPARATIVE TOP LIVES'POCK PRICES (Dollars pcr hUlldrod weight) @"IIIII I ItIIIIIIIUIIIt IIlI'IIIIIIIIIII III IIIIIIIIII IIIIIIIIItI IIUIlIl1t11l11Ult ll llllllllllltlllllllllllllllllllllll[;J § I FORT WORTH LIVESTOCK RECEIPTS (Number) : _ § §_ : Ato~ot Ato~ost Cha~~rover Cattlo."........ Calves........ . . Hogs."..... .. .. Shoop....... .. .. 50,639 38,632 15,743 18,054 60,707 32,350 27,361 36,301 - 1,068 + 0,273 -11,608 - 17,337 § ruJfJ Ch~'~~t~ver 52,505 26,010 16,700 42,137 + 7,134 +12,722 - 1,056 -24,083 August I : Beef Steers. .. ........... . ..... . ..... .. .. Stooker steers.......... . ............. .. .. Dutcher cows.. . .... .. ... . .. .. . . . ... . .... Stooker cows....... .. .... ... . ............ Calves. ... . .. ... .... . . ... ............ .. . Hogs......... . .... . ....... . .... . . .... .. . _§ ~_ § ~:;c;~:::::::::: :: :::::::: : ::::: : ::::::: : mllllll1l1l1ll lllllllllllllllllllllllllllllllllllllUlllll llllllltlll lllllll ll ll11111111111 11J1l1 11111111f11111111111111I!1 August 1030 S 8 .50 6.00 6.50 3.25 10 .00 10.56 1920 1030 $13.75 $ 0 .25 12.50 .. 0 . 0 0 ' "5:50 5.75 . .. 12. 75 '''0:00 11 .35 0. 16 1~:~~ Ug July ~:~ § GlIIIIIIII.111111111111111111.1.111.,IIIIIIIIIIIII.11111"111111111111111111111111111111111'11111111111111111IIIIIIII.IIIGJ FINANCE A further seasonal increase in the demand for Federal reserve bank funds was in evidence during August. The borrowings of member banks, which stood at $12,. 744,365 on July 31, reflected an almost steady gain through. out August and reached a peak on the last day of the month at $14,,875,824. The expansion in demand came largely from country banks as the borrowings of reserve city banks reo mained generally stable. During the first hidf of September, loans to member banks reflected a gradual decline, amount· ing to $13,338,877 on the 15th of the month. On that date in 1929, these loans totaled $45,855,522. There were 268 borrowing banks on August 31 as compared to 260 a month earlier, and 263 on the same date a year ago. Due to the increase both in member bank borrowings and in open market purchases, total bills held rose from $16,891,687.43 on July 31 to $22,153,272.23 on August 31, distributed as follows: Operations of the Federal Re· serve Bank Member banks' collateral notes secured by United States Government obligations ................. _.......... _..... _....___......_ ........_...... $ 2,545,150.00 Rediscounts and other loans to member banks ..._ .... _...........__ .. 12,880,674.47 Open market purchases (Bankers' acceptances)_..........._._.......... 7,278,589.26 Discounts for non-member banks_ ..._............ _. ___ ... __ .... _. __....... 3,858.60 Total bills held.._.._... _................._.. _............. _......._ ..........._ .$22,168,272.23 A sharp seasonal increase in the actual circulation of Federal reserve notes occurred during the month, the total being $34,,352,395 on August 31 as compared to $30,74,7,150 a month -earlier. The daily average of reserve deposits of member banks, which amounted to $57,561,4.55 in August, was $1,485,94,9 smaller than in July and $3,606,097 below the average for August, 1929. An increase in loans and deposits and a decline in inv'estments were the principal features reflected in the reports from member banks in selected cities during the five·week period ending September 10. Their investments in United States securities were reduced $1,531,000 and their holdings of other securities fell off $1,287,000. Loans on securities were $687,000 higher on September 10 than on August 6, and "all other" loans (largely commercial) were increased by $2,752,000. Total loans and investments, which amounted to $436,836,000 on September lO, were $621,000 larger than five weeks earlier but were still $45,099,000 smaller than on the corresp ond- Condition of Member Banks in Selected Cities ing date last year. Due largely lo the mark;eting of cotton, there was a steady flow of funds to cily banks and was reo flected in the rise in funds "due to banks" from $88,551, 000 011 August 6 to $105,482,000 on September 10. At the same time, these banks incl'Cased their deposits with other banks $15,273,000. The net demand deposils of lhese banks rose $12,292,000 during the period, hut time deposils de· clined $2,060,000. Their borrowings al the Federal Reserve Bank amounted to $2,357,000 on September 10, as compared to $2,721,000 on August 6, and $31,799,000 on September 11, 1929. I CONDITION STAT'~'C~,:F.~~J.E::~~:~ IN :::TED S~;;:: I :: : :: = 8 . 111111111111111" .... 1111111111111111111111111111111111111111111I1111111I1I11111111111I111111 .. llll l1 l1lllll1l1l1lfltl[!l § : :: :: : § :: Unitod States securities oWlIod. . . . . . . . . . . . . All other stocks, bonds, and sccurities owned. Loalls on soourities..................... . . All other loallB. . . . . . . . . . . . . . . . . . . . . . . . . . . TotalioBlIB.................... . ......... Net demand deposits. . . . .. . . . . . . . . . . . . . . . Time deposits.. . ......... . . ..... .. . ..... . Reserve with Federal Reserve Bank.... . . . . Bills payable and rodiscounts with Foderal Reserve Bank-....................... .. $ 50,020' 45,200 08,736 232,080 331,716 278,()36 148,688 34,635 $ 61,451 46,487 08,040 230,228 328,277 266,344 150,748 32,173 $ 77,833 ~ 1,640 102,278 200, 184 362,462 289,072 142,052 2,357 2,721 31,700 :: :: g = :: :: 33,~27: 0'111111111'1111111'"11111111111111111111111111111111111111111111111I111J1l111111111111t11111111111111111111111l1lll ll g :: (!J The daily average net demand deposits of member hanks in this district during August, which amounted to $579,092,000, registered a further decline of $12,473,000 from the previ· ous month and was $50,817,000 smaller than in August, Deposits of Mem.ber Banks @"IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII.IIIIIIIIIIIIUII tll"llIllIflllfllllIlll1l1l1lll1l1l1ll1l1lf~ E : i :: DAILY AVERAGE DEPOSITS OF MEMBER BANKS (In thousands of dollars) § ~ Combined Total Reserve City Danks Country Banks Net demand Time Net demand Time Net demand Time deposits deposits deposits deposits deposits deposits Aug. Sept., Oot., Nov. Dec., Jan., Feb., Mar., April, May, June, July, Aug. 1029 . ..... S629,900 1020 .. .... 668,520 1020.. .... 674,587 1020..... . 668,818 1029.. ... . 663,830 1930.. .... 650, 110 1030. ..... 656,110 1030.... .. 639,686 1030..... . 630,029 1030...... 623,282 1030...... 603,020 1030...... 601,565 1030...... 570,092 S230,043 234,116 226,673 222,773 220,111 22M60 232,758 220,358 237,274 241,420 244,026 240,052 241,260 $260,010 266,705 282,630 281,009 270,011 270,951 268,107 269,635 271,647 260,958 260,854 261,127 256, 176 $137,174 136,050 134,108 132,236 131,870 131,152 13G,111 132,932 138,080 142,181 143,753 142,482 141,675 8360,890 391,725 301,057 387,200 384,228 388,150 386,022 360,051 358,382 853,324 342,166 330,438 322,916 S 03,469 07,166 01,475 00,538 88,232 04,317 06,047 06,~26 08,204 00,248 100,273 08,470 09,504 SIIIIIIIIIJIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII.UIIIIIIIIIIIIIII11111111111'"11"1111111111111111111111 111 Gl MONTHL Y BUSINESS REVIEW 1929. Average time deposits ros'e to $24,1,269,000, as compared to $24,0,952,000 in July, and $230,643,000 in August a year ago. The time deposits of country banks increased while those of reserve city banks decreased. There was a substantial seasonal increase during August in the aggregate of acceptances held by accepting banks in the Eleventh Federal Reserve District. The total of $5,891,4.31, outstanding on August 31, represents a gain of $2,628,561 O\ller the previous month, and an increase of $2,621,778 over the same date last year. For the first time in nine months, the volume of acceptances based upon import and export transactions showed an increase over the preceding month, and at the end of August the total was $1,566,471, as compared to $939,861 on the last day of July, and $1,44,1,123 on August 31, 1929. Acceptances executed against domestic shipment and storage of goods rose from $2,323,009 on July 31 to $4,324,,960 on the last day of August. Acceptance Market Debits to I ndividUal Accounts The volume of debits to individual accounts during August at banks located in principal cities of this district declined 4,.6 per cent from the previous month, and was at the lowest level reached since May, 1928. Total charges in August amounted to $739,302,000, as compared to a volume of $911,879,000 in the same month last year, and $774,,791,000 in J ul y this year. DEBITS TO INDIVIDUAL ACCOUNTS (In thousands of dollnrs) Poreontngo Abilene. . . . ... . . Austin .......... Dooumont . . . . .. . Corsicana....... Dallas.......... : g~~!i~L~:::::: :_i Houston......... Savings Deposits Savings deposits, as reported by 89 banks in the Eleventh 'District, aggregated $156,680,806 on August 31 as against $155,451,500 at the end of J uly and $153,577,819 on the same date last year. The increases represented by these figures amount to 0.8 per cent and 2.0 per cent, respectively. The number of savings depositors at 82 of these banks increased to 320,154, at the end of August, as compared to 319,283 a month earlier, and 313,065 on August 31, 1929. 5 § PortArthur ..... § §;~~~~o~i~::::: § 'l'ucaOJl.......... ~~~~~;;'.'.'.::: ~ ~f"~i~ 'F~I'ls: ::: 1 _ : 0 August 1930 $ 6,884 16,786 22,045 4,625 190.588 u:m 174,736 10,027 7~:m m~~ 8,214 ~g:~~~ July 1930 $ 7,600 19,445 24,211 4,973 188,529 -26.1 -21.1 -20.2 -28.8 -19.8 Percontage ehango over Month - 9.4 -13.7 - 8.9 - 7.0 + 1.1 • 173,853 11,054 ohnllgeft~rvor y~ August 1929 $ 9,312 21,266 27,638 6,500 237,562 +.5 -3.9 g -20.5 i • g ~~:m =iU l!i:iU 203,648 12,002 -14.2 -12.9 8~:~g~ t~:m =lU =~n 7~:m ~~:~~6 ~m~ =~U =Ji ! ~~:~~~ 10,197 -10.4 ~ =1~:~ =1~:~ 10,337 ~ =3U "I:C~:~~s' ;~~ fig:::':~~wo b::I~:'~:~reX"rk~~:: ~rkans:71~:~d t: ~;:hth .~=§ in District. 1111111111 11 1111111 11 111111111111111111111111111111111 11 111111111111111111111111111111111111111111111111 .... 111 .... 11118 ~'llIllIlltlllllllllllllllll l lllllllllllllll l lflllllll llll ll ll l l lll l ll lfll 11 1 1 1 111 1 1 1111 1 111111111111111111 1 1 1 11111111111111111111111111111 11 1111111111111111 1111 1111111111111111111111 1111 111 111111 11111 11 111111111111111 11 '"111I1I11I11f • • IIIIIIIIIIII. 1 ' ~:_ :: Number of Roporting Danks : ~ : : : : DDeaumont ............ ,.... El lp a las.................... F as0.. ................. . 'ort Worth GI t .. · ··· .. · .. · ···· 4" 4 2 2 § W~:a%~~l.'.:::::::::::::::: 1~' ::- sort Arthur. . . .... . ....... _ an Antoni : Sh 0............... : Ww~~~~p~~t .. .. :::::::::::::: : ichita Falls § All others ... : : : :: :: : : :: :: : 2 7 4" 4 2 44" § August 31, 1930 Number of Amount of Savinga Savings Depositors Doposit. 5,976 S 2,674,077 68,196 26,943,450 16,320 6,224,881 18,026 7,760,054 13,018 8,141,270 72,487 35,056,127 4,870 1,790,085 37,002 23,045,416 20,962 13,157,354 10,650 7,004,852 3,746 ' '1,664,854 46,183 23,217,477 _ : _~ SA VINaS DEPOSITS August 81, 1920 Number of Amount of Savings Savings Depositor. Deposits 5,918 S 2,502,503 63,773 25,448,371 15,864 5,820,814 17,840 7,348,318 13,923 8,853,142 77,429 34,994,428 4,007 221'598804'6 3647 1 34,550 " 21,197 11,211,803 0,981 6,924,071 4,241 1,585,340 43,933 24,230,238 PerO cevnetr"g~~rhl'nnge " y~ Savings Deposits + 3.1 + 5.0 + 6.9 + 5.6 - 8.0 +.2 -+10 .0 2. 0 + 17.4 + 1.2 + 5.0 - 4.2 July 31, 1930 Number of Amount of Savings Savings Depositors Doposits 6,009 $ 2,640,803 67,042 26,767,588 16,310 5,058,146 18,870 7,746,947 13,059 8,121,862 72,323 34,615,890 7,8 ~-22'775384,08706 1 r3 4 20 . ,70 2 l , ,1 ~0,036 ~ 13,232,964 10,388 3,747 46,268 1fl..,l6,867,650 1,674,116 I': 23,338,269 if Porcentage Change Over Month in Savings Deposits + 1. 3 + .7 +4.5 + .2 + .2 +1.3 +1.0 +1.4 - .6 +2.0 - .6 - .5 Total......... 89 320,154 $156,680,806 313,065 S153,577,810 + 2.0 310,283 $155,451,500 "Only 3 bunks in Booumollt, 10 banks in Houston, 3 banks in Shreveport, and 40 banks in "All 6thcrs" reported the number of savings depositors. ~ + .8 l!J 'I1'1I1 11111I111111I1I1I11 1I 11111I 1I 111I1I1I111111 11 11111I11I1 11I11 1111 11111 11111111111 111111111111 111 111111111111 11 11 111111111111111111111111111111111111111111 11 11 .. 11111111 "' 1111111 11 11111 1111 11 111111 11 1111 11 111111111111111111111111111111111111111 :. • ~ : : : :: S ~_ . C : :: = § E ~ m 811111111111111"111111111111111111111111111111111111111 1111111111111111111 111 1I I I I I IU IIIIIIIIIIIIIIIIIIIIIIIIIIIIIII I IIIIIIII I IIIIIIIIIIIIIIIII"III1111111111111111111111111111111111111111111111111111111 11 11111111111111111111111111fllIlI lI llIllIll .[!J SEP'rEMBER DISCOUNT RATES Dallas Rate eharged oustomers on prime commeroial paper such as ia now eligiblo for rediscount under the Federal Rcaervo Act. . . . .. . . . .. . . . . . . . . . . . . . . . . . . . . . . . . Rate oharged on loana to other banks scoured by bills rccoivablo. . . . . . . . . . . . . . . . . . . Rate on loans aecured by prime atook exebango or other ourrent oollatornl (not including lonns plaoed in other markets through oorr08pondont banks): Demand . ......................................... · .......... ~ Ralc Ohn~c:deo~ ~o;';~'odiiy 'p~pe~ ~eo~~ed by' ;~~rcho~·so·~ccchii.s', 'ctc: :::::::::::::: Rate on oattle loans.. ...... .. .. .. .. .... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. Prevailing Rat08: EI Paso Fort Wortb 5-0 4~-6 6-8 6 5-7 5-8 6-7 3~-6 Houston San Antonio 4-6 5-6 6-6 5-6 5-6 6-8 6 6*6 6-8 6-8 6-7 6-7 6-6 5-6 6-8 6-8 6-8 6-8 8 6-8 6-7 6-8 6-8 6-8 6-8" 7-10 Waco -------1 --------1 -------- ~=~ § mlllllllllllll.II.IIII ••• II.IIIII.IIIIIIIIIII I .1111 1 11111111 1 1111111 1 11 11 11111 11 '1111111 1 11111111 1 11111111 1 1IUIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII'I.IIIIIIII,I.I I II I II11111 1 11111 11111 11 1111111111 11 1111111111111 1111 ' 1111111IIIII . IIIII.III.IIIII.II I III.IIIID INDUSTRY Textile Milling For the fifth consecutive month, operations of textile mills in the Eleventh District evidenced a decline during August ?S compared with the previous month and the correspondIng month last year. Production of cloth was 6.5 per cent ?elow that in July, and 4.0.3 per cent less than the output In August, 1929. There were 2,235 bales of raw cotton con- sumed during the month as compared to 2,4,33 hales in the previous month and 4,173 bales in the same month last year. The volume of orders recorded on the books of reporting mills on August 31 showed a sharp decline from that a month earlier and a year ago. Stocks on hand at the end of the month, while slightly less than those on July 31, were considerab ly larger than on the same date last year. Prices MONTHLY BUSINESS REVIEW 6 of raw coLLon and most classes of cotton goods evidenced a further decline during the month. The August consumption of cotton at all United States mills totaled 352,335 bales, which was 7.0 per cent less than in the previous month and 36.9 per cent below that of Aug· ust, 1929. The amount of cotton on hand at consuming establishments, while less than a month earlier, was 26.3 per cent greater than on the same date of 1929. E:l_ _r~:~~"~~':~~~~;'~;;~;~~'; ::;~~~~;~;~""' ' ; l~' ": : 1 Number spindlcs active.. . .. . ....... . .... . Number pounds cloth produced. . . . . . . . . . . . 1,101,070 105,756 1,845,712 1,177,637 ~IUI IIIIIIIIIIIIIIII I IIIIIII1I1II I III1I1IIItIlIIIIIIJIIItIlt111 1 11 11111 1.,IIIIIIIIIII IIU.,IIIJ I I IIIIII: .I.,U llllltlllrm 1!1l l lllfllllllll l ll.lIl1lllllUllllllfllllllllllltlllllllllU I IIIII1 I IlIII II 1I1 11I1I1111 1 111 1 1IIIClIIIIIIIII111111111111 ID g g g g g " g : § : : g _:_" ~ § COITON CONSUMED AND ON RAND (Balcs) August August 1030 Cotton growil1~ statc." Cotton consumed........... On hand August 31 inConsuming cstablishments. Publio storage and com· presscs . ...... ......... United States: Cotton consumed. . . . . . . . . . . On hand August 31 inConRuming establishments. Public storage and compresscs . . . . . . . . . . . . . . . . 1020 283,731 428,771 § August 1 to August 31 'I'his Season LMt Season 1 _: 428,771 Stock. August 31...... . . . . . . . 406,388 1,194,041 352,335 558,754 800,080 August 31, 3,464,600 1,382,226 1030 ~;~~ ~;~~e~d~il~ .. : : : : : : : : : : : :: ::: : : :: : : : : : : : : : : :: : : : : § With the harvesting of the cotton crop well advanced, the movement of cotton· seed is increasing rapidly and a large percentage of the mills have resumed operation. The reo ceipts and crushings of cottonseed during August at both Texas and United States mills and the production of cottonseed products showed a substantial increase as compared to a year ago. Stocks of cake and meal, and hulls on hand at the end of the month at United States mills were less than a year ago, while those of linters were larger. Cottonseed Products 28,578 48,804 56,710 53,830 &1 1 111111111 II1I1HIIHIIII11I1111111I1I1111I111I111111111111I11111I1111111111111111 1111111111111 11111111111111111111110 1 he marketing of the current cotton crop was reflected in a substantial increase in the August receipts of cotton at Houston and Galveston as compared to the previous month. Those at Houston were materially larger than a year ago but those at Galveston were slightly smaller. The August 'exports of cotton at Galveston were smaller than in either the previous month or the corresponding month last year but exports from Houston reflected a large increase over both periods. Cotton Movements 02,742 f a,ooo I Cf I" III I fill I 11111 " II "" '.,111 1 11 f I till" I1IIIII1 CI1111I II1 f I f til I 1 f 1I1I1 f"" U .,1111 rt filii III If ,.11111 ;; t.1]] I~~~~~~MO"ME"S ~t~::~ ~~I~~:~~~:~· I m ,IIlIIIlIIlIlIIIUIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII IIIJII.U '"1I 11I1I 11I11I 1I 1I II 11111 111111 II II IIIIIIIIII IG SEASON'S RECEIPTS, EXPOR'I'S, AND STOCKS OF COT'I'ON AT ALL UNITED STA'I'ES POR'I'8-(Balcs) Augusl 1 to August 31 This Season Lnst Senson Receipts . . . . . . . . . .. . . .. ... . . . . . . ... • . . . ... . . Exports: United IGngdom . . . . . . . . . . . . . . • . . . . Franco . . . . . . . . . . . . . . . . . . • . . . . . • . . . Italy... . .. . . . ...... . . .. ........ . .. . ... . .... Germany. . . . . . . . . . . . . . . . . . • . . . . . • . . . . . . . . . . OLller Europe . . . . . . . . . .. . . . . . . . . . .. . . .... . . . i'lr~rh~; ~~~~·t~i';"·. :: : :: ::: :: : :: : : :: :: :: :: :: : Total rorei~n ports. . . . . . . . . . . . . . . Stocks nt nil United Stntes ports August 31. . . 23,310 45,340 20,500 135,488 203,488 GJ I 11II1 Texas United Statcs August 1 to August 31 August 1 to August :1I 'I'his SeMon LMt Senson This Season LMt Sensou 239,060 120,023 160,652 35,217,074 56,303 32,064 65,642 16,700 ,II ••• III . ,II II.I .I ••• I •• • ,.II ••••• I"II., •• I •• ,., ••• ,.'1"III , •• I1IIIIIII",I"I. "IIII.IJII "' ."II IIIII I.I •• 1,III.,{EJ S'I'ATISTICS ON COITONSEED AND COITONSEED PRODUC'I'S 38(1,120 165,770 214,065 40,321,710 76,770 45,878 ~:~~~ 6,800 800 102,898 ;; m G)' 111111111111111111111111111111111111111111111111111111111111111.,1111111111111111111111111111111 11 1111111111111111111 1 8 146,113 71,240 04,070 1020 ota . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . : rn t:~~~ August 31, For other roreign ports.. . . .. . . ..... .. . . .. . . . . .. . . . .. . . For ooastwise ports. . . . . . . . . . . . . . . . • . . . . • . . . . . • . . . . . • . In oomprcssC8 nnd depots . ... . . . . . . . . . . . .. . . . . . . . . . . . . . : g t!l COT'I'ON-GALVESTON S'I'OCK S'I'A'I'EMEN'I' (Balcs) E :": 02,742 111 .1I1I1.,I I IIIIII II(lII IIII"llll llllllllllllIlI . , IIIIII.1IIIIIIIItlllllllfllfltlllllllflll.lllllflllfllllllllllllll.[!J ~ 1,011,661 lUO,220 00,710 124,508 20a,488 " 0.II.IIIIIIIIIII'.,IIIIIIIIII1I1UIIIIIIIIIIII1I1IIIIII1I1I1UIIII1.,111111111111111.,11111111111111111,,11111111111111 Cottonseed reoeived at mills (tons) ........... . . ..... .. . Coltonseed crushed (tons) . ... . Coltonseed on hand (tOilS) ... . . Crude oil produced (pounds) .. . Cake and meal ~roduced (tOilS) Hulls produced (tons) ........ . Linters produced (running hales) .. .......... . .... . .. . Stocks on bond August 31: Crude oil (pounds). ..... . ... . Cake and meal (tons) ..... , . . . Hulls (tons). . . . . . . . . . .. . . . . • Linters (running bales)... . . . . . :1 I!11111 11111 II 11111111.11111 1111111111 HIIIIIIIII fl·' 11 11111111111 1111 "11111111 1111 11111111111111111111111111111111111111 8 I!1 t::.~. MOVEMENTE T:it~::) Ti~RTT~~;'~~~~' _ g 283,731 3,116,353 558,754 [!JIIIIIIII'.II"'I'III""IIIIIIIIIIII f 111111111111111111111111111111 f 11111111111111111111111 f 11"'1111111111111111111111 § g 647,000 352,335 Total foreign ~xports of cotton from all United Slales ports 366,036 bales in August as compared to 176,4,35 bales in July and 226,018 bales in August, 1929. This was the first month since last October that the exports for the current month exoeeded those of the corresponding month of the previous year and the large gain over the low July figure is distinctly encouraging. The countries showing a large increase in takings in August as compared to a year ago were, United Kingdom, France, Germany, and Japan. aggrega~ed I!l' f 681,064 55,444 56,773 21,707 125,405 51,615 452,811 25,550 35,552 21,003 00,381 40,080 :360.036 1,882,031 226,018 653,518 ri:M~ g:m 111"1111,1,11,111111111.,.111'11"111111111111,1"' 1 "11111 11 111,111 '11 ',1,. , 11.,11 11111 1"'1.1'1,.11,1,1," t 1I1I11 SPOT CO'I'TO~ PRICES- (Middling BMis) (Cents per pound) August, 1030 High Lew NewYork............ . . ... . ..... . . . ..... New Orlenus..... . .......... . .. ... . . . ... . DaUIlS.................... .. . . . . . . .. . ... Houston ........ ..•... . . . • . ... . .. ... . ... . Galvcston. . ......... . ... . ... . .. . ..... . . . l!J III IS 13.15 12.80 12 .25 12.75 12.80 11.00 10.56 10.05 10 .70 10.75 Sept. 15, 1030 10 .05 10.63 10.10 10.85 10.85 It 11111111111 tI III II III II II It 1111111111111" 111111111111111111111 11111111 1111111.111 II IIH" ""1111111111111111111 ,G] The output of crud~ oil in the Eleventh Federal Reserve District decreased from 27,170,500 barrels in July to 26,904,,350 barrels in August, and showed an appl'eciable reduction from the August, 1929, yield of 28,500,100 barrels. Daily average production during the month amounted to 867,882 barrels, representing a decline of 8,585 barrels from July. Drilling activity likewise reflected a curtailment, as evidenced by the smaller Petroleum MONTHLY BUSINESS REVIEW number of wells completed during the month, but the initial output from new wells was somewhat larger than in the previous month. The situation in the lumber industry in the Eleventh District continued slow and unsatisfactory during August and the first week in September, as reflected by a further decline in production, shipments, and new orders for lumber. During the four-week period ending September 6, shipments declined from 67 per cent of normal production to 63 per cent, and production and new orders each evidenced a decline of 1 point from 70 and 61 per oont, respectively. Stocks of lumber on hand at reporting mills on September 6 were slightly higher than those held at the end of the previous four weeks. Lumber The daily average yidd in Texas amounted to 826,4.06 barrels during August, as compared to 835,880 barrels in july and 882,726 barrels in August, 1929. Southwest Texas contributed all increase of 23,220 barrels over the preceding !l1onth, while Central West Texas showed a decline of 27,598 barrels. The largest new production was in East Texas, where 18 producers completed in the Van field had a combined initial output of 100,620 barrels. Unfilled orders for lumber on the books of 42 mills on September 6 aggregated 32,396,000 feet as against 35,360,000 feet on hand at 44 establishments on August 9. There wel'e 87 wells completed during August in North Louisiana as against 73 in July. Increased wildcat activity was responsible for most of the new production. 911.11111111111111111111111111111111111111111111111111111.11 •• " ••• 11 • •• 11111'1111111111111111.1111 •• 11111 •• 1.1""""1;1 8" 11 1 .11111111111111111111111111111111111111111111111111111111111,.111111.11.,1111II.IIII.II.IIIIIIIIIIIIIIIIIIIIIIIIII[!] ~ ~ I:.:. OIL PRODUCTION- (B.rrels) InorcBSO or Deorease Over ~i~r~ tl~ ~ :':< : : : : 1f3:,~,i" ~ ~,f i ~f~~~ Southwest Texas .... .... ... .. PINE MILL STATISTICS § § (Four-week period cuding September 6, 1930) Number 01 reperting mills .. . . . .. .. . . . ... . . .. ... . . .. .. . . . Production .... . . . . .. . .. . ... . . ... .. .... . ... , .... . .. , . . . Tot.1 Texas .. . .... 25,618,600 1,285,750 826,406 41,476 - 293,700 + 27,550 - 9,474 + 880 ~ g Tot.1 District...... 26,004,350 867,882 - 266,150 - ~ 42 51,535,000 feet ~~~~~~n.ts: : : : : : : : : : : : : : : : : : : : : : : : :: : : : : : ::: : : : : : : :: ::: :u~n~~ ::~t 1 . .:_ E North Louisi.n............... 8,585 7 ~ Unfilled order8 September 6.... . . . . . . . ••. . . . .. . . . . . . • . . . . 32,396,000 feet Norm.1 produot.ion. . . . . . . . . . . . . . . . . . . . . . . .... . . . .. .... . 74,106,000 feet Stooks September 6.. .. .. . . . . .. . .. . . .. .. ........ ... . .... 300,717,000 feet Shipments below normal production . ... . . . . .. ,., .. . ,.. . . . 27,416,000 feet--37~ nctual production below norm.I. .. . . .... . .. .• . .. . . . • . .. . . 22,661,000 feet-31 Ordors below normal produotion . . . . . . . . . . . . . . . . . . . . . . . . . . 2C,500,OOO fcot---40 . ~ &1111,.1111.1.1 •••• 1•• 11.,1,1.11111111, •• , •• 1,11 •• ,11 •• 1.1',111111111,11.' 1,11111.1111,"11111 , .1111.111111 •• 11111 •• "'18 (Lumber statistics compiled by the Southern PiRe Association, New Orleans, La.) (!J.III.I.,II'I.,IIIIIIIIII.,.,IIIIIIIIIIIIIIIIIIII IIII'1IIIIIIIIIItIIIIIIIII I II11.,.I.,111'11111111111111111111111111 1111I!1 mllltll'IIIIIIII"""""II"""""""""""'111111111111"11111111111111111111111111'1111111111111111 IIIIIIIIIIII~ ':~ ~ : Completions Nortb Texas .. .. .. .. .. .. .. . 151 ~:. ~i~s" ~8!7 North Producers 71 Loui~~~~l ~~~~~ ... .. : :: August totals, district . . . . . . . July totals, distriot . . .. . .. . . Gas Wells 22 Failures 68 Initi.1 Production 80 60 357 418 258 336 251,929 244,086 ~ 29,~~g: 43:~2 ':3~5' :~6:' 0:!3 0 '!2!0: 695 823 Construction operations during August at leading cities in the Eleventh Federal Reserve District, as evidenced by the valuation of building permits issued, reflected a further increase over the previous month, but continued on a smaller scale than in the same month last year. The valuation of building permits issued in August totaled $7,169,706, representing an increase of 341 per cent over the preceding month but a decline of .8 14.5 per cent from August a year ago. Building :~ AUGUST DRILLING RESULTS :: ::: I . For the first eight months of the current year the aggregate valuation at reporting cities amounted to $47,852,146, being 31.9 per cent smaller than in the corresponding period of 1929. rnllll.II.lt'IIIIIIIII., •• I •• , ••• II •• II.III ••• IIII •• 11111.11111111.111111111111111111 , .1111111111111111111111IIII.IIIIIII[!) r""""""""""""""""""""'~;~;;'~;~';~~~""""~~;:"""'~:;:':""'1 t::: TcxBS ooast.1 grade "An. . . ... .. .............. . .. . . .. . North nnd Central Texas nnd Nortb Louisinn. (44 gr. and .bovo).. . ........ .. ..... ..... .. ... ......... ... $1.15 $1.30 1.57 NOTE: The valuation of building permits issued at Dallas during July was erroneously reported as $6,860,397 and that figure was published in our Review dated August 1, 1930. The correct total was $1,314,702 and the necessary adjustments are made in the following table: 1. 85 =::: 1EJ11I111I1111I1I11I1I1I111I.11t1l1l1l1l.,IIIIIII.lllIlllIlIlllIll1f1.11t11l1l11111111111.111111111111111111111111111111118 (Oil st.ti.tics compiled by Tho Oil Weekly, Houston, Texas.) 1!l1'.III •• I . IIIIIII •••• IIIIIII.III.IIII.I.I.,IIIIII.1111111111111111111111 111 111111111111111111111111111111 •• ,1111111.111',11 ••• 11 •• 1,111111"""",1 •• 11111111111'111.1 •• 11.1,111111111111., •• ~ BIDLDING PEnMITS .:~ August, 1030 • August, 1020 ~:.i ~:r:'~ N~ll :ru;~;;l N:~l :"~~i: • = cD:~:08~~i~t;:: ;: ~. I~~:m I~~ 2~~:410 P~r~s~r~h·~':.'.':: 42 273 00 162 03 310 04 1,1 05 183,072 3,207,531 87,478 1,342,002 263 114 242 210 g~ 50J 331 628:020 427,731 1,67 1,227 2,360,420 Wio!rltn 'Fnl'la: :: ~~ 36,875 24 184:845 nIh E WI P:~:::: : : :: ort Worth. . . . . galveston...... ~- WrevellOrt..... 2~~ m:~~ ~~~ m:~~~ ~hn Alltonio .. .. 152 1~g~6 40 103 446 E ~ .: _ Totnl .. .... - - -- - - - - - - 1,704 $7,160,706 2,581 $8,384,950 Percentage m.ngc V.lu.tion Over ;n! = 54 : 7 7 + 87 +6~n = =~U 04 8 43 .4 _ 12.8 + 75 - 80: 1 --14.5 July, 1030 Percenta,lle Chango ValuatIOn Over iiti Nji :.~~~ m 11~~~',r~~ "+ ~~~ m:m =~n 220,374 60780 1874'420 '371:131 1 + 281.. 4 6 5. 1 +1208.4 + 46.3 _ 28.4 + 15.2 20 73,720 __2_1 ~ + 50 .9 + 305.0 54 280 106 330 126 40:327 1,073 $5,320,382 + 34 .8 1930 11,111.1.,.1.11.,1111.,1, I'I"'I ' I'I'I'II'I'I'II"'III""'~ ~~~ :1B :i~i~ 6,~~~',~~~ 2,m 004 1,032 061 2,044 872 2,106,005 8,050,884 007,842 12,170,072 2,487,560 180 862,440 E m nge =~ P~~~!troon O:er 1020 :~ll ,vii ~j 2,m S08 2,007 1,400 3,665 1,027 ~:~~~:m 2,450,406 7,016,517 3,332,637 22,306,280 2,120, 156 g~: t:~~~:~;~ ~:~~1 1~:~~~:~~~ 271 878,242 m 2,~48,15~ 46,67 16,83a $47,852,140 20,552 $ 70,200,077 +4~:~ - 10.4 + 1.8 -72.8 -45.4 +17 .3 =~~:~ +57.1 _ __.0_ 1 -31.0 = I § : 5 $ 5 •. ~• ;: §.: m""."UIIIIIUIIIIIIIIIIIIUIIIIIIIIIII.IIIIIIIIIII.UIIIIIIIIIIIIIIIIIIIIUIIU.1I1I1111111111111111111111111 ... 111.11111111111111111111111.11111111111111111111111111111111,.1.,11111111 ... 1111111.111111111111 ........ 1111 ..... 111 .... 11 11 .. 1111 ... 1 8 MONTHL Y BUSINESS REVIEW There were 697,000 barrels of portland cement prod1,lced at Texas mills during August, as compared to 585,000 barrels in the preceding month and 707,000 barrels in the same month last year. Shipments declined to 634.,000 barrels, being 10.6 per cent smaller than in July, and 19.3 per cent less than in August a year ago. Stocks on hand at these mills increased from Cement 564,000 barrels on July 31 to 627,000 barrels at the end of August, and were 34.. 5 per cent larger than on August 31, 1929. Aggregate production through August 31 of the current year showed an increase of 2.0 per cent over 1929, and shipments during the same period reflected a gain of 4.7 per cent. f ~ .......................................................................... u ............................................................................................................................................................................. -:: :_ PRODUCTION, SHIPMENTS, AND STOCKS OF PORTLAND CEMENT (In thousanda of barrels) ==_= : : :: August g 1930 Number E Produotion at ToxlI8 milia . ..... . .... . ..... . ............... . .............. . .. . ................. .. .......... 697 634 :E ~~~~e~~:d~f ~~~hn::l'Te~~·,;.jliS::: : :·.:: ·. ::: : :·.·.::·.:: ·.::· ._ 627 ...:::: .::::: .. :. ::'...... . . . . . :. . .....................:'.. . . @ .. Percentage change Over Month Year +10 1 - 14 -lO:O -+34,6 10:3 +11.2 January through August 31 Percentage Ohango Number Over Yenr 4724 +2 0 4;009 +4:7 = E = § .:.: - UIIlIlUU ...... lllllllltlllfUI1IU ... II ..... UIU ...... UIlIIIl ....... ,IIIIIIIIU .... 1 ....................... 111 ...................... 11111 .... ' .............. 11111111 ••• "1111UIIIIIIIIIIIIIIIIIIIIIUIIIIIIIIIIIIIIIIIIIIII.III .. IIIIIIIIIIIIIII.ro SUMMARY OF NATIONAL BUSINESS CONDITIONS (Compiled by the Federal Rcserve Board as of September 28, 1980) Industrial production as a whole was in the same volume in August as in July, contrary to the usual upward trend at this season, although there were seasonal increases in activity in a number of basic industries. Factory employment and payrolls declined further. The general level of commodity prices at wholesale, which had declined continuously for a year, remained unchanged between July and August, advances in prices being reported in certain important agricultural staples. PRODUCTION about the usual size. Condition of pastures on September 1 was reported to be unusually poor. The cotton crop is expected to be about 14,34.0,000 bales, nearly one·half mil· lion bales less ilian last year DISTRIBUTION Volume of freight shipped by rail increased by slightly less than the usual seasonal amount during August. Sales of department stores were larger than in July, but continued considerably smaller than a year ago. WHOLESALE PRICES The Board's index of industrial production, which makes allowance for seasonal variations, continued to decline in There were increases during August in prices of many August. Production of automobiles, pig iron, lumber, and agricultural products, especially meats, livestock and grains, sugar decreased, and there was a reduction in the consump- while the price of cotton decreased. Prices of mineral and tion of cotton and wool. In the bituminous coal and silk forest products and of imported raw materials and their industries, there was less increase than is usual at this sea- manufactures in general declined, with the principal excepson, while in steel, cement, flour, and shoes the increase was tion of silk. The Bureau of Labor Statistics index of wholeslightly more than seasonal. During the first two weeks of sale prices showed no change from the preceding month. September, activity at steel plants increased, while a further During the first half of September, there were pronounced reduction in output of automobiles was reported. Building declines ill prices of wheat, corn, hogs, pork and rubber. contracts awarded, as reported to the F. W. Dodge Corpora- Prices of cotton and woolen textiles remained fairly stable, tion, were in slightly smaller volume during August, largely while those of hides and coffee increased. on account of reduction in educational and industrial conBANK CREDIT struction projects. Residential building contracts continued small. During the first two weeks in September, awards Between August 20 and September 17, there was an averaged about the same as in August. At the middle of increase in member bank holdings of investments and in August, the latest date for which figures are available, the their loans on securities, while all other loans, which innumber of wage earners employed in factories and the clude loans for commercial purposes, declined, contrary to volume of factory payrolls was smaller than in the middle the usual seasonal trend. The volume of reserve bank credit of July. There were decreases in employment in the iron and outstanding showed a growth for the period as is usual at steel and cotton textile industries, and at foundries and ma- this season but the increase w~ ..~latively small owing to chine shops, automobile plants, and saw mills. Substantial the fact that the seasonal demand ror currency was smaller seasonal increases occurred in the canning and preserving, than in other recent years and owing to an addition of $15, bituminous coal mining, and clothing industries. 000,000 to the country's stock of gold. The increase was in holdings of acceptances, offset in part by a further decline AGRICULTURE in discounts for member banks to the lowest level since September 1 estimates by the Department of Agriculture 1927. Money rates continued at low levels during August indicate a corn crop of 1,983,000,000 bushels, about 700,. and the first half of September and the yield on high grade 000,000 bushels less than the five-year average; a spring bonds declined further. Discount rates at the Federal Rewheat crop of 240,000,000 bushels, slightly larger than last serve Banks of Dallas and Minneapolis, the only banks year's unusually small crop, making the total wheat crop which had maintained a 4· per cent rate, were reduced to about equal to the five-year average; and a crop of oats of 3Y2 per cent during September.