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MONTHLY BUSINESS REVIEW
OF THE
FEDERAL RESERVE BANK OF DALLAS
C. C. WALSH
CHAS. C. HALL-W. J. EVANS
Chairman and Federal Reserve Agent
Assidant Federal Reserve Agents
(Compiled September 15, 1933)
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Volume 18, No.8
Dallas, Texas, October 1, 1933
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This copy is released for publication in morning papers-
Sept. 29
DISTRICT SUMMARY
THE SITUATION AT A GLANCE
Eleventh Foderal Reserve Distriot
Change from
July
August
1088
Ba~~ dobits to individual aooounts (at 17
D Oltles) .. . .... . ... . ..... .. ... . . . .. ... . ... .
nepartment storo sales ....... .. .... . .. . .... .
os{rvo bank 10MS to membor banks nt ond
month ... ..... .. .................... ..
B~rrvo bank ratio at ond of month . .. ...... .
CUI ding pormit valuation at larger oontors .. . .
C~~~~~O!al fa!lures ~'!U~'?c.r) ..... . ........ .
0'1
olal faIlures hnblhtles) .. ....... . ... .
I produotion (barre s) .... .... .. .. .. . .. .. . .
n0
$13B,088,000
4,251,510
58 .8%
072,107
53
$ 1,550,123
30,604,050
-
8.1%
-
10 .2%
+ 31.7%
:t: 5U~ points
+ 2B .2
+ 05 .1
0
0
+ Ii.! 0
~llIlllllllllllllllllllllllI11111111111111'111111111111111111111111111111111111111111111111111111111111111111Itllllllllllllllllllllllllllllllllll111111111111111111~
A.n improvement in the physical condition of agriculture
and livestock and a further expansion in U1e distribution of
tnel'chandise at both retail and wholesale were important de·
~elopments in the Eleventh Federal Reserve District during
ugust. Retail distribution, as evidenced by sales of depart·
Itlenl stores in principal cities, reflected an increase of 32
Pel' cent over the previous month, and was 27 per cent in
excess of that in August, ] 932. The large increase over the
f1'eceding month is more impressive because the decline in
uly was much smaller than usual. The volume of wholesale
trade'
'
tl . 111 some lines showed less than th
e usua I
expanSIon,
ye t
d~l~. was not surprising in vie~ of the h~a,,! disu·jbution
lIng the summer months. WhIle reports mdlcate that con·
bUlbel' buying in rural sections is improving, retailers who
gOught heavily earlier in the summer are attempting to
ge n10r~ accurately. the pr~spective, consu~er de~nand
i d?r~ addmg substantIally to mventOrIes. Whlle debIts to
c1. IVIdual accounts at larO'er cities reflected a seasona l de·
thIne of 8 per cent as co~pared with the previous month,
ey were 4. per cent larger than a year ago.
b:r
Favorable weather in August was beneficial to the agricultural and livestock industries. Heavy rains in a large
portion of the drouth area stimulated growing crops and
improved livestock ranges. In other sections, weather conditions aided in the maturing and harvesting of crops and
served to hold in check insect activity and plant diseases.
In its September 1 report, the Department of Agriculture
estimated that the production of most major crops in states
attached to this district would equal or surpass the estimates
of a month earlier. The substantial increase in the prospective production of cotton, this district's major cash crop,
and of some feed crops was particularly significant.
Federal reserve bank loans to member banks continued
at a low level during the past month. The total of these
loans amounted to $4,,237,000 on September 15, as com.
pared with $3,993,000 on August 15, and $12,891 000 on
the same date in 1932. The loans and investments ~f memo
bel' banks in selected cities reflected a substantial expansion
between August 9 and September 13. The daily average of
combined net demand and time deposits of member banks
was $580,108,000 in August, representing a decline of
$7,730,000 from the previous month, and $17,054,000 from
August last year. The recession from a year ago, which has
been gradually narrowing in recent months, was smaller in
August than in any month since 1929.
Construction activity, after increasing substantially in
June and July, reflected a sharp recession in AuO'ust and
was at a level slightly under that of May. The Au~ust val.
uation of building permits issued at principal cities was 52
per cent less than in July, and 4. per cent below August last
year.
BUSINESS
~holesale
Somewhat less than the usual seasonal
1'ade
expansion was shown in the business of
t1'·
reporting wholesale dealers in this disI d 'Istn'b'
.
thlet du'nng A ugust, due in part to th
e leavy
utlOn lD
l~ece.ding months. While the improvement in the ca~e
wa alln Implements was sizably larger than seasonal, thls
ill ~hoffset by a contrary to seasonal decline of 17.9 per cent
Cr e case or dry "'oods. Nevertheless, an appreciable in·
ease l' n d'Istn'b utlOn
. 0 occurre d'In the other reportmg
.
I'mes,
ot
and substantial gains over a year ago were recorded in the
case of every line with the exception of drugs. Recent reports indicate that a well sustained demand for merchandise
was in evidence during the first part of September, espe.
ciall y in certain rural sections. Wholesale stocks reported
by hardware, grocery, and dry goods firms were materially
larger on August 31 than a month earlier. Increased collec.
tions as compared with July were reported in the lines of
groceries, dry' goods, hardware, and drugs.
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
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MONTHLY BUSINESS REVIEW
Commercial
Failures
While the number and liabilities of commercial failures in this district during
August were materially above the low
level of the preceding month, they reflected a considerable
reduction as compared with the same month last year. Fig-
s
ures reported by Dun & Bradstreet, Incorporated, show that
53 firms defaulted during the month, and their liabilities
totaled $1,559,123. In July there were 42 insolvencies
owing $798,981, and in August, 1932, there were 92 failure~
with a total indebtedness of $2,327,615.
AGRICUL TURE
Crop Conditions
Favorable weather conditions in this district during August greatly benefited
growing crops, and the September 1 estimates of the Department of Agriculture were larger for a
number of crops than a month earlier. Heavy rains ~uri~g
the month effectively broke the drouth of long duratIOn m
most of the western part of the district and came in time to
benefit some of the important crops. While more rain wo.uld
be beneficial in many areas, most sections now have suffiCIent
I~oisture to mature growing crops and permit the preparatIon of the soil for seeding of fall grains.
, A f ul'lher improvement of the cotton crop occurred durIng the past month. According to the September 1 report
of the Department of Agriculture, the greatest improvement
Was in Texas, where weather conditions were more favorable than usual in August and where insect damage and
plant diseases were less than the average. This was due to
th.e heavy general rains in the northwestern section, which
stnnulated plant growth following the protracted drouth,
and the below normal precipitation in the black land belt
?f Central Texas and in East Texas, which aided in maturIng and picking of the crop as well as holding insect damsge and plant diseases in check. The estimate for Te~as on
, eP.tember 1 was 162 pounds per acre, as compared wlth an
I~dlcated yield of 153 pounds on August 1, and an actual
Y,leld of ] 62 pounds last year. This indicates a total produclIo~ for the State of 3,85] ,000 bales, whereas the August 1
estImate was 354.1 000 bales. The estimate for Oklahoma
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V
.
b as
raIsed
from" 1,043,000 bales on August 1 to 1,133000
,
ales on Septcmber 1. On the other hand, the unfavorable
heather in Louisiana reduced prospects for that State 27,000
ales durinO' Aucyust and the September 1 forecast was for
S43
b
0
,
. , d
5 . , 00 bales. The estimate for New Mexlco was raIse
1"1~00 bales, while that for Arizona remained un,ch~nged.
S e total estimated produ ction for the Eleventh Dlstnct on
tel11bcr 1, as compiled by the Federal Reserve Board
f ep
0
1' 111 estimates by states by the Dcpartment of Agriculture,
h~s placed at 4,499,000 bales as compared with 4~225,000
bal es .011 August ], and an actual production of 5,233,~00
b es 111 1932. The cotton acreage removed from productIOn
Y the Agricultural Adjustment Administration in states
~t~~ched
to this district was indicated as follows: Texas5
4:50 ,000 acres; Oklahoma-l,160,000 acres; Louisi~na
___2,000 acres; New Mexico-30,000 acres; a?d Anzona
1,000 acres ' Picking and 0<Tinnin'"b of coLlon 111• the older
COlt
b 011 SCctions of Texas made rapid progress dlll'lng August,
t lltjthc f1' qucnt rains since the first of September have rearc ed th'IS Work and have increase d In
. sect actiVIty.
. .
°
er~lospects
c~n~id.
for the production of feed crops are
iln Y better than they were a month ago. The gIeatest
l' ,Provement occurrcd in arain sorghums, due to the heavy
!\lna' Ll
b
•
1
Cati In le drouth sections. The Department of Agncu ture
bel' ~lated the T xas crop at 54,964.,000 bushels on Septem6300 as compared with 38.052.000 blHlhelR on August.I, al~d
N;\v 8,OO~ bushels in 1932. The indicated production 111
1 t 4Mexlco was rAised from 4,120,000 bushels on August
o , 944.,000 bushels on September 1, and the latter figure
compares with 3,763,000 bushels produced last year. In
Oklahoma the indicated production on September 1 was
15,220,000 bushels, as against 7,610,000 bushels a month
eaTlier, and an actual production of 15,219,000 bushels a
year ago. While the forecasted production of corn in Texas
and New Mexico remained unchanged during the month
it was raised in Louisiana and Oklahoma. The estimate fo;
the district on September 1 was 85,948,000 bushels as compared with 85,349,000 bushels on August 1, and 116,292,000
bushels in 1932. The production in Texas, New Mexico, and
~klahom~ .will be considerably under that of a year ago.
lhe condItIOn of the hay crops on September 1 indicated a
larger production than a month earlier in all states attached
to this district except Arizona. The late feed crops have made
rapid growth and promise a substantial addition to the
fanners' feed supply to supplement the deficiency in the
production of earlier crops.
The Texas rice crop production was indicated at 7,332,000
bushels on September 1, as compared with 7,191,000 bushels
on August 1, and 8,880,000 bushels produced in 1932. While
the indicated production of peanuts in Texas on September
1 was 94,640,000 pounds as compared with 99,000 000
pounds last year, a heavier yield than in 1932 is indic~ted
for Louisiana and Oklahoma. The sweet potato crop in
Texas and Oklahoma showed an improvement in August
but the indicated production is ~till lower than. a year ago:
On the other hand, the crop declmed somewhat In Louisiana
during August, yet the indicated production on September 1
was slightly higher than a year ago.
Livestoc/c
Range conditions over most of the
Eleventh District showed a substantial
improvement during the past month. Heavy, general rains
have effectively broken the drouth of long duration in the
"High Plains" area of Texas and have relieved the dry condition prevailing in portions of New Mexico. The rains in
the Edwards Plateau region and in West Texas, however
were spotted and mostly of a local natlll'e, with the resul~
that portions of the area are still dry and range feed is
short. More rain in these areas is urgently needed. Most of
the oLller areas of the district have ample moisture and a
substantial improvement in range feed prospects has occurred . Livestock have responded slowly to the improved feed
conditions due to the effects of the long drouth. Calves in
the dry areas are much lighter than usual.
The Department of Agriculture rated the September 1 Condition of callIe ranges in Texas at 77 per cent of normal as
compared with 83 per cent a. year ago. The condition of
sheep and goat ranges was. estll,?ated at 71 per cent on September 1, which was 1 pomt hIgher than on August 1, but
17 points lower than a year ago. The 78 per cent condition
of caule on September 1, while 1 point higher than a month
earlier was 8 points below that last year. The condition of
sheep 'showed no c~lange during the ~onth and that of
goats declined 1 pomt. As compared WIth a year ago, the
condition of sheep was 8 points lower and that of goats 5
points. The condition of rang~s and livestock in New Mexico
reflected an improvement dUrIng the month.
MONTHLY BUSINESS REVIEW
4
The arrivals of cattle and calves at the
Fort Worth market during August showed an increase over the previous month,
but were slightly smaller than a year ago. The receipts of
hogs were sizably larger than in July and exceeded those of
August, 1932, by a wide margin. On the other hand, the
number of sheep yarded reflected a further decline from the
previous month and were only about half that for the corresponding month last year.
Movements
and Prices
The market demand for cattle during the past month has
been light with a large percentage of offerings of inferior
quality. Prices on practically all grades have been weak ~o
lower. Following a downward trend in the hog market In
August, prices turned upward in the first half of September
and at the middle of the month had regained most of the
loss since mid·July. The market for sheep declined somewhat
during the past thirty days.
§IIIIIII 11111 11111 II III II 11111 II 11111 II III II III II 11111 11111 II III II 111 II II III II 11111 II 11111 11111 II III II III 111111111111111111111111111111111111111111111111111
COMPARATIVE TOP LIVESTOCK PRICES
(Dollars per hundredweight)
)1111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111 11111111111111 11I1I1I11I11I1I1I1I11I1I1I1I1II1I11Il!i
FORT WORTH LIVESTOCK REOEIPTS
(Number)
Cattle .......... .
Calves ......... .
Hogs ........... .
Sheep .......... .
August
1033
38,040
22,131
44,781
38,488
August
1032
38,837
22,766
17,810
77,100
Change ovor
year
707
624
+26,062
-38,711
July
Changeover
month
1033
+1,305
36,645 I
16,728
+5,403
37,334
+7,447
44,636';
-6,148
Beef steers ..................... . ........ .
Stooker steers ........................ . .. .
~t:!:'~eer~e~=:. :::::::::: :::::::::::::::::
Cnlves ................................ ..
et':::::::::::::::::::::::::::::::::
August
1088
$5.65
3.50
3.50
4.75
4.40
3.00
0.80
August
1932
$8.00
5.76
4.00
July
1083
l6.15
5.50
3.25
3.00
5.25
4.50
2.25
4.50
5:60
4.60
3.25
6.75
~1I11I1I1I\1I111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111 11111111111111111111111111111111111111111111
FINANCE
The demand for Federal reserve bank
Operation of
credit showed little change during the
the Federal Repast month. The borrowings of member
serve Bank
banks at the Federal Reserve Bank, which
stood at $3,993,000 on August 15, reflected a very gradual
rise between that date and September 6, when the total
amounted to $4,682,000. By September 15, however, these
loans had declined to $4,237,000, or a figure only $244,000
above that a month earlier. On September 15, 1932, total
loans amounted to $12,891,000. The number of borrowing
banks totaled 129 on September 15, as compared with 138
on August 15, and 255 on September 15, 1932. This bank
again increased its holdings of United States Government
securities, the total of $52,782,000 on September 15 being
$3,658,000 greater than a month earlier and $22,061,000
above those a year ago. The reserve deposits of member
banks, after increasing during the preceding three months
declined $2,009,000 between August 15 and September 15,
but on the latter date were $13,191,000 larger than on the
corresponding date last year. The combined circulation of
Federal reserve notes and Federal reserve bank notes
amounted to $41,720,000 on September 15, which was
$3,042,000 greater than on August 15, and $4,006,000 larger
than on the same date in 1932.
of other secuntles reRected a gain of $1,4,64,000 between
August 9 and September 13, they were still $3,937,000 uni
der those on the corr~~ponding dat~ in 1932. The l?ans .~e
these banks on secuntles showed lIttle change .duI:mg It st
period, yet they were $12,803,000 less than at thIS LlTne
year. "All other" loans (largely commercial ), after dec JP
ing during the summer months, reflected a steady incrdea~e
between August 9 and September 13, and on the latter a ~
were near the highest level reached since February. Howe;e~;
they were still $14,.339,000 belo~ those ~ year agO. T Je:k
net demand depOSIts rose steadIly dunng the five-we n
period, being $9,362,000 greater on September 13 than. 0 e
August 9, and were larger than on any reporting date
March 15. This increase was offset to some extent Y
d
decline of $4,060,000 in time deposits. Combined neJ
mand and time deposits on September] 3 were $10,04 , de'
below those on September l4., 1932. While the reserve st
posits of these banks declined $3,694,000 between Augua
9 and September 13, they were $5,954,000 larger ~an r'
year ago. These banks had completely liquidated Lhell' bo
rowings at the Federal Reserve Bank on September 13.
t.
rllea
0;0
~lIl1l11l1l1l1l11ll1ll1l1tllllllllllll'1I11I1I1I1I1I111111111111111111111111111111111111111111111 1111111111111111111111111111111111111111111111111111111111
(In thousands of dollars)
~_IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII111111111111111111111111111111111111111111111111111111111111"
CONDITION OF THE FEDERAL RESERVE BANK
(In thousands of dollars)
Total cnsh reserves ...................... .
Discounta for member hanks .............. .
Other billa diseounted ................... ..
Billa bought in the open market ........... .
United States securities owned ............ .
Other investmenta ....................... .
Total earning naseta ..................... .
Member bank reserve deposita ............ .
Federnl reserve notes in notual cIrculatIon .. .
Federal reserve hank notes in notual circulation ................................ .
Aug. 15,
1033
60,135
5
57,201
55,225
31,202
Sept. 15,
1032
47,576
1¥J801
r<one
867
30,721
5
44,484
42,034
37,714
10,428
None
6,538
Sept. 15,
10S3
54,445
~J237
r<one
177
52,782
~J093
r<ono
108
40,124
5
53,320
57,234
38,140
iirllIlIllIlIlIlIIlIlIlIlIlIIlIlIlIlIlIlI II 111111111111111111111111 1111111111111111111 1111111111111 111111 III 1111111111 1111111111111 1111111111111 11111111111 1111 IIIIIIF.
Condition of
Member Banks
in Selected
A sizable increase in the loans, investments, and deposits of reporting member banks in selected cities was registered
Cities
during the five-week period ending September 13. The investments of these banks
in United States securities were increased $11,245,000 during the period, and the total of $117,226,000 on September
13 was $34,945,000 greater than a year ago. While holdings
.... SOOUrl't'108 owned .............
Um'ted Sta"",
All othcr stocks, bonds, and soourities owned.
Loans on soourities. . .. .. .. .... .. .. .. .. .. .
All other loans.. .. .. .. .. .. .. .. .. .. .. .. .. .
Totnlloans. .. . . . . . . .. . . .. . . . . . . . . .. . . . ..
Net demand deposita. . . . ........ ........ .
Time deposita ........................... .
Reserve with Federal Reserve Bank .. ......
Bills pnyable nnd rediscounts with Federnl
Reserve Bank............ . ........ .....
_
Se t 13
foaa '
117,226
52,102
50,680
148,267
207,056
216,355
123,315
32,741
Se t 14
f032 '
82,281
56,030
72,402
162,606
235,008
225,676
124,034
26,787
None
2,011
Aug. O,
1033
105,081
50,63 8
50,748
41 707
I " 546
~~:00736
273
136'435
'
610
;1111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111
Acceptance
Market
. the
A seasonal upturn was reflected l~aJlkS
volume of acceptances executed by ding
in the ~leventh District and oULSLaS,966,
at the close of August. ThIS figure amounted to $1,9~ JulY,
which compares with $] ,128,966 on the lasL da.y 0 rt of
and $869,655 on August 31, 1932. While the major P;aJlceS
the expansion was shown in the amount of accep thOSe
based on the domestic shipment and storage of good~, like'
e
executed against import and export transactions wel yea!
wise in larger volume than either a month earlier or a
ago.
MONTHLY BUSINESS REVIEW
Deposits oj
There was a seasonal decline in the combined daily average of net demand and
time deposits of member banks in the
Eleventh District during August. This figure amounted to
$580,108,000, which compares with $587,838,000 in the
preceding month, and $597,162,000 in the same month last
year. The reduction from a year ago amounted to only $17,054.,000, which is the smallest such decline shown in several
Y.ears. A major portion of the decrease occurred at reserve
City banks.
to $436,988,000, as compared with $4,75,333,000 in July and
$4,19,288,000 in August last year. The percentage dec;ease
from the preceding month amounted to 8.1, and the increase
over a year ago was 4.2 per cent.
Member Banks
g,1I11111111111111111111 III 1111111111111111111111111111 11111111111111111 11111111111 11111111 11lI1I1II1U1I1II11I1I 1111111 111111111111111111111111111111111111111111111.:
~
DAlLY AVERAGE DEPOSITS OF MEMBER BANKS
(In thousands of dollars)
§
=
§
=
=
Combined Totai
Reservo City Banks _.::C.:::ou::n:::tr:::.y-=B:.:n.;:;nks~_
Not domand Time Not demand Time Not demand Time
dopoeits dopoeits depoeits dopoeits depoeits depoeits
~ug., 1982 .. . .. . $409,254
413,201
Not., 1082 .. .. .. 4J3,100
Dov., 1082 . . .. . . 421,165
J co., 1032 . . . . . . 420,762
Fa'b" 1038 .. .. .. 410,655
1938 .... .. 415,200
A or., 1088 .. .. .. 413,776
~riJ, 1033 .. .. .. 394,700
J ny, 1938 .. .. .. 394,386
1088 .. .. .. 305,083
AU y, 1938 ... . . . 306,788
ug., 1083 ..... . 389,177
oPt., 1082 .. .. ..
IJ .,
/1'0,
$187,008
187,040
180,716
103,246
192,266
104,407
102,412
188,547
186,161
186,596
186,405
191,055
100,031
$201,130
202,121
200,582
204,861
202,913
201,437
100,807
202,276
108,431
191,847
192,306
196,040
191,302
$114,532
113,987
!l0,186
116,816
117,465
119,215
118,756
115,737
113,723
113,101
113,390
113,908
112,665
$208,124
211,170
212,608
216,804
217,840
215,218
215,803
2JJ,500
201,350
202,480
208,587
200,748
197,875
$73,376
73,108
73,580
76,480
74,801
75,192
73,056
72,810
72,488
73,495
73,015
77,147
78,266
_
August
1983
$ 3,884
14,757
11,520
2,297
124,396
12,097
46,839
16,145
108,444
4,436
1,714
39,751
28,514
4,897
4,848
9,417
8,082
Abilone ....... ..
Austin ........ ..
Bcnumont .. . ... .
Corsioona ..... . .
Dnllna ....... '"
El Pnao ........ .
Fort Worth .....•
Gnlveston . . . ... .
Houston ........ .
Port Arthur .... .
Roewell . .. . .... .
San Antonio . . .. .
Shrevoport .. . . . .
rrCxlI.rknnn· ... . . .
Tuoson ........ ..
Waoo .......... .
Wiohita Falls ...•
=
I
DEBITS TO INDIVIDUAL ACCOUNTS
(In thousands of dollars)
August
~IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII'IIIIIIIIIIIIIIIIIIIII1III1IIIIIII111111111111111 111 111111111111111111111III1III1IIIIIII111111111111111111111111111111111111111t=
§=
6
1032
$ 3,387
14,073
11,588
2,074
117,010
13,145
44,690
16,128
100,720
3,902
1,701
42,085
20,802
4,885
0,619
8,228
8,287
Peroentage
ohange ovor
year
+14.9
4.9
.6
+10 .8
6.3
- 8.0
4.8
.1
7. 7
+13 . 7
- 2. 7
- 5.5
+13 .0
.2
-20 .8
+14 .5
- 1.9
+
+
+
+
+
+
July
1038
$ 3,813
14,400
12,662
2,131
131,765
13,452
66,339
17,200
118,359
4,161
2,319
43,604
28,516
5,107
7,088
9,533
9,754
Peroentago
ohnnge over
month
.6
+
+ 2.5
-
9.0
7.8
- 5 .6
-10 .1
-16 .9
- 6.6
-8.4
6. 6
-26 .1
- 9.0
0. 0
- 4.1
-31.1
- 1.2
-17.1
+
+
Total. ....•• $436,988
$419,288
+ 4.2
$475,333
_ 8.1===
§=
. ~Inoludes the figures of two banks in Texarkana, Arkansna, located In tho Eighth
D,strJOt.
~1I1II11I1I1l1II11I1I1I1I1I1II11I11I1I1I1I1II1II1II1I1II1II1II1II11II11II1II1II1I1I1I1I1II1I11l1I11I1I11II1I1I11II1IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII/I/IIIIIIIIIIffi
Samngs
Deposits
There was a further slight decrease during August in the total savings deposits
While the volume of debits to individual
held by 135 banks in this district that
accounts during August at banks in prin- operate savings departments. These deposits amounted to
cipal cenLers in this district was substan- $135,348,4,?2 on August 31, as against $135,917,515 a
tially smaller than in July, the signifi- month earlIer, and $139,082,580 on the same date last year.
cance of this decrease was minimized by the fact that a The reduction as compared with a year ago amounted to
COnlrary to seasonal expansion occurred in each of the four 2.7 per cent, which is the same as the decline that was shown
Pteceding lnonths. Total charges during the month amounted at the end of July.
11111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111Ilillllllllllllllllllllllllllllllllrr
Debits to
IndividZUJ,l
I1ccoUnts
"""""'""11'"""'1111""'11'"11"'"11'""'"11'11"'"'""'111111""'""'"1111""""11"'"'"'"'"'"'111111"11"'"'11'11'"11"'11'1111"111"'11111'11'11'"'11'11111'1111"11'11111'11'"'111111"'11"11111'11111111111"'111"1111'1111111'11111111111"11'1111111111111111111111111111111'1111111111111'];
SAVINGS DEPOSITS
-----------------------------------------------------------------August 31, 1083
g~~lumont ... .. .•.... . .... .
E:I pas.. .... . .. .. . . ... .. ..
Fort '\""oo'r'( " .. .. .. .. . .. .. ..
Qalv~ton h. . .... .. . . . . ... .
~1¥: '
i:~i~ 'F "" " .. ....... ..
II
othors~~I~::
::: : : ::::: : :
Total. .. .... .. .. ....
Number of
roporting
banks
3
9·
2
4
'l"
3
8~·
135
August 31, 1082
Number of
savings
dopoeitors
Amount of
savin~s
Amount of
dopoe,ts
Number of
savings
dopoeitors
7,830
68,511
0,665
32,228
$ 3,088,048
28,524,260
3,080,400
10,207,880
10,303
5,500,205
;M]
5~:m
209,782
July 31, 1083
savin~s
Peroontago ohange
ovor year in
savings deposita
Number of
savings
dopoeitors
Amount of
savini!"
depoe,ts
Peroontage ohange
over month in
savings depoeita
8,210
75,435
10,524
38,846
$ 2,957,332
25,257,377
3,248,310
11,217,608
+ 4.4
- 6.9
+22 . 7
7,856
72,581
0,663
32,209
$ 3,081,648
23,871,742
3,996,610
10,687,650
+ .2
_ 1.6
.4
_ 3.0
10,368
5,546,274
10,389
5,583,378
dopoe,ts
=U
:ti 1m:m tl I
;I:r~:m ~m :rmm ~Ji
2~:m:m
$185,848,402
5t~~~
318,730
-
2~:m:~~:
.8
~.:70
350452,:9~5~37 $1325~,:9~1~4737,:5~1075~
=2
$139,082,580
~
_ 1.5
2= 3: g
_
==
i=_==-
:===
.4
·Only 8 banks in Dallna, 9 in Houslon, and 75 in "All othors" roported tho number of savings dopoeitors.
~."'''"'''''"",'.''.::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::,',',':,',':,',':,',',':,':,',':,',':,',':,',':,',',',',':,',':,','::,'::,'::,'::,'::,',':,',':,',':,',',',',':,',':,',',',',':,',':,',':,',',':,'::,',':,','::,':,',':,',':,',':,',':,',':,':,':,',':,',':,',':,',':,',',':,",',',',',',',',',':,',',',',':,',':,',',',',':,',',',':,',',',',',',',',',',',',',',',,'',',',',':,',',',',',',',',',',',',':,'::,',',',',',':,':,',':,',',',':,',',',':,':,'::,':,'::
--
SEPTEMBER DISCOUNT RATES
~
ltntoo ged
oustomors or~rimo commoroial papor suoh QB is now oliglble for
lln tcJ\ar
h,soount undor tho F ernl Resorve Act ............ . . .................... .
h too
"ato 0 argod on lonns to other bnnks sooured by bills rooeivnble ... . . .. ... . ..... . ..
in 7lqans secured by primo stook exohango or othor eurroDt oollatoral (not
o U~lng lonns plaoed In other markots through oorrespondont banks):
Ti~":,~~~':::::: :: : ::: :: :: ::: : : : : : ::: : ::: : : : :: :: : ::: : ::::::::::::: : :::
l:to 0hargod on commodity paper secured by warohouso receipts, etc .. ... . ... . .....
~
n cattlo leans . . . .. ..... .. .. .. ...... . ... . ..... . .. ... ... ...... ... ..... .. .
§
Provailing rates:
Dallas
EIPnso
Fort Worth
Houston
San Antonio
Waco
3- 7
47t-6
6-8
5-6
4-8
5-6
5- 7
5- 6
6-8
6
3-6
6-8
6-8
4- 7
6-8
8
8
8
8
5-8
5-8
5-8
6-8
5-7
5-7
6- 7
7- 10
6-8
6-8
8
8-10
6-8
6-8
5-6
7- 8
5~
"""""""""'''''''''"""""11'"""'"""111"111"'""'''111""11"'""'"'""111"""''''""'"""'""''''111""""11""""""""""""111"11111""11"'""""'''"",","",,"""",""""""""'"""""""III"""'""'"'""'III"I11""I1"I11I1""""I11"""""""f.
C
Jl Otton,seed
I' oducts
INDUSTRY
With bCTinninbCTs of the 1933 cotton• crop
reaching unusually large proportIOns ~t
lllill .
this time the receipts of cottonseed at 011
llI11ch l~ both Texas and the United tates were on a scale
lngher than in August, 1932, and also exceeded those
of the previous month by a wide margin. The crushings of
seed during August were likewise on levels far above the
averages for that month, resulting in the production of all
cottonseed products at both Texas and American mills be.
ing considerably greater than in the corresponding month
--------------------------~~------------------------------------------------
6
MONTHLY BUSINESS REVIEW
---------------------------------------~
last year. Output of products was also seasonally larger
than in the preceding month. Stocks of cottonseed held by
crushing establishments on August 31 were less than the
holdings on the same date last year, but at Texas mills they
were somewhat larger than those a month earlier. Inven·
tories of oil, and cake and meal on August 31 were greater
than those a month earlier or a year ago, while supplies of
hulls and linters reflected a decline as compared with last
year.
STATISTICS ON COTTONSEED AND COTTONSEED PRODUCTS
Texns
United States
August 1 to August 31
August 1 to August 31
This SCllllon Lnst SCllllon This senson Lnst senson
Cottonseed received at mills
CottOl1lleed on hand August 31
(tons)...... .. .. .. ... . . ....
Crude oil produced (pounds)...
Co\~o:~ ~~h~'(~~i:::::
f~~:~~
67,740
84,106
232,646
233,223
118,400
152,826
133,280
35,433,155
158,002
24,245,558
220,306
70,878,254
265,607
46,01l,638
Linters produced (running
halee).....................
=
= Stocks on hand August 31:
§ Crude oil (pounds). . . . ...... .
17,364
0,680
38,003
21,540
13,571,006
10,640,557
38,551,869
18,110,824
1
__ ~~~ :~~cc:l rto~)~~. ~t.o.~!
=
gr:~~
~g:~~~
1~:~~
rg:~~f _=1_
=
§
than in August, 1932, this decline was partially offset by an
increase at Houston. The receipts of cotton during August
were below those a month earlier at Galveston, but both
ports showed large increases over a year ago. Stocks of raW
cotton on hand at these ports on August 31 were slight~Y
less than a month earlier, but at Houston they remained )n
much larger volume than a year ago.
Total foreign exports of American cotton during August
continued in very large volume, notwithstanding a contrag
to seasonal decline as compared with the previous mon .
Shipments were for the second consecutive time great enoug~
to establish a new high for that month. There were 530,62
bales of domestic cotton exported during August, as co~'
pared with 692,007 bales in July, and 452,154 bales )II
August, 1932. While shipments to the United Kingdo)'ll
and Japan were smaller than those a month earlicr, tJ1ey
('ontinued in much larger volume than a year ago. Export;5
to continental Europe were smaller than in either the prev )'
ous month or the like month of 1932.
111111111111111111111111111111111111111111111111111111Jllll1111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111
COTTON MOVEMENTS THROUGH THE PORT OF GALVESTON
(BBles)
tE~!~ :,:,:" ':,:,:,:" " " '~:~,~"' ' ' ' ' '~ ,~' ' ' ' ' ' :~,~,~" " , ,~ ,~, , ,i
Despite another contrary to seasonal de·
cline as compared with the previous
month the domestic consumption of cot·
ton continued on a very high level during August. There
were 588,570 bales of cotton consumed, which is with one
exception, August, 1927, the largest amount of cotton ever
consumed during that month. The August total compares
with a consumption of 600,143 bales in July this year, and
404,497 bales in August, 1932. The supplies of coLLon held
by consuming establishments on August 31 were again in
smaller volume than a monlh earlier, but they continued
above those h~ld on the corresponding date last year.
The consumption of cotton at reporting Texas textile
mills during the past month was approximately the same as
in the preceding month, but a large increase was evidenced
as compared with August, 1932. The production of cloth,
however, while showing a further increase over a year ago,
was considerably smaller than in July. Orders for finished
products on hand on August 31 were greater than a month
earlier, but less than those held on August 31, 1932. Inven·
tories of products at the close of the month were also larger
than those on July 31, but materially smaller than a year
ago.
----------------~~--------------August
Recoip~ ....................
.
Exports ..... ... .... .. ....... .
Stocks, August 31. .......... .
Textile
Milling
gU1I1I1I1II1II1I111 11111 11111111111111111111111111111111111 11111111111111111111 II II 111111111 II 111111111111111111 II II 1I11111111111111111111111111111111111111111111~
§E
-
Ic~€~~~. :::. ::: :~r·~~·1
588,570
404,407
588,570
404,407
§
!, " "':~=~" " " " "' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' :.: ,:,:,~' ' ' ' ': :,;,: " ". .1
The exporls of cotton through the porls
of Houston and Galveston during the
initial monlh of the 1933-34, cotton season
witnessed a material decline as compared with the preced.
ing month, and while shipments from Galveston were less
Cotton
Movements
August
1032
33,030
50,526
August 1 to August 31
This SonBon LllSt sellsO n
40,483
52,075
432,405
3a,030
50,526
435,683
5"1111111111111111111111 1111111111111111111111111111111 111111111111111111111111 111111111111111111111111111111111111111111111111111111111111111111111111111111
COTTON-GALVESTON STOCK STATEMENT
(Bales)
----------------------~~~----------------------August 31,
For Great Britain ...... .. .... . ...... . ............... .
For Franoo ......................................... .
For other foreign por~ ............................... .
For o0ll8twis6 ports .................................. .
In oomprcsaes aud depots .. ........ .... ....... .. ..... . .
1033
2,000
2,000
10,500
1,000
407,005
Total. .... ............ ...... .. ......... .
432,405
AugU8t 31,
1032
1,800
1, )00
13,000
500
410,283
-
435,683
511 11111 II II 11111 II II III II 1111111 II II 11111 II 11111 1111111 II 1111111 I! II 1111111111 II II 11111 II 1111111 1111111 11111 II 111111111111111111111111111111111
:~=_
~: = = =
__
==IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII IIIIIIIIIIIIIIIIIIIIIIIIIII 1111111111111111111111111111111111111111111111111111111111111111111111111111111
COTTON MOVEMENTS THROUGH THE PORT OF HOUSTON
(Daloo)
_
Reooipts...... .... ......... ..
Exports.....................
Stocks, August 31. .......... .
August
August
)9S3
166,000
185,784
1082
84,281
179,015
August I to August 31u
This soason Last sOllSo
I~~'~~~
160,000
),118535',7781'1'
077:242
:fillllll 1111111 II II III II II 1111111 II II 11111 II 1111111 II III 11111111111 II 1111111 II II 11111 1111111 1111 111 1111 1111 11111111111111111111111111111111
!!JI 11111 II 1111111 II II 1111111 II 1111 III II 1111111 1111 1111111 111111111 11111 II II 11111 II 11111 II II II 11111 II 11111 II II 11111 11111111111111111111111111111111111111
~
---
SEASON'S RECEIPTS, EXPORTS, AND STOCKS OF COTTON AT ALL
------------------------------~--~------A- st
§E
COTTON CONSUMED AND ON HAND
(Bales)
- United States:
§
Cotton consumed.... . . . . .. .
10S8
40,483
62,075
31
August I to ugu (l!II!oo
This soason l.'I9t s 28
Receipts ....... ............ .................. . .... ...
Exports: United Kingdom. .. . . .............. . ........
Franoe.. ...... ...... .. .... . ..... ...... .... .
~~~n~y:: :: :::::: :::::: :::::::::: ::::: ::: :
4~'~63
511,060
108,722
55,613
70'003
42'6 24
~~:~~~
1~~:~~~
Other Europe. . . . . .. . . . . . . . . . . . . .. . . . .. . . . . .
81,563
Jaran..... ...... .......... .... ...... . ... . . .
117,481
AI other countries...........................
42,203
Total foroignports...... .......................... .. .
530,627
Stocks at all United States por~, August 31. . . . . . . . .. .. . 2,057,552
68' 404
47'081
462'164
3282'614
"
§illl 1111111111111111111111 II 1111111 II 11111111111 II 11111 11111111111 1111111 111111 1111111 II 111111111111111111 II 111111111111111111111111111111
SPOT COTTON PRIOE8-(MiddIing Bnsis)
(Centll por pound)
August, 19S3
High
Low
New york...............................
New Orleans ............ . ............ ... .
Dallns..................................
Houston.................................
Galveeton...............................
10.45
10 .40
)0 .05
)0 .35
10.aO
8.65
8.55
8.20
8.M
_______
Sept. 16,
1038
0. 00
033
8:00
0 26
0:25
8.50
~IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111
--------------------------------------------------------~---------------------------------------------------------MONTHLY BUSINESS REVIEW
--------------------------------------------------------------------------------------------------------------------7
Petroleum
Crude oil produced in this district duro
ing August totaled 39,604,,050 barrels,
which is 1,912,850 barrels larger than the volume of the
previous month , and 10,922,010 barrels in excess of the out.
P?t in August, 1932. There was little change from the pre.
Vlous month in the amount of field activity. Of the 459
wells completed in August, 306 were producers and had a
COmbined initial yield of 1,4,24,,4,93 barrels. There were 464
COl11pletions reported in July, of which 301 were successful,
haVing a total flush output of 1,083,11.3 barrels.
The daily average yield of Texas areas during the month
amounted to 1,210,900 barrels, reflecting a gain of 59,105
barrels over July, and an increase of 34,6,4.00 barrels as
C?l11pared with August last year. While most of the expan·
Sion over the previous month was sho·wn in East Texas,
other regions in the State with the exception of South Texas
also participated in the increase. A further gain in output
was recorded in New Mexico, but North Louisiana reported
a moderate decline.
b In the latter part of August and the first part of Septemer, several further advances in posted prices were an·
III1III1I III III111111111 111111111111111111111111 11 1111III1III1II III II111 111 1111111111111111111111I1111111111IIIIIIIIIII III IIIIIIIIIIIIIIIIIIIIIIIIIIIIU:
OTL PRODUCTION- (Barrcls)
August, 1933
Total
Daily Avg.
~orth Texas .. . .. . ......... . . 3,146,500
101,500
Eon:r;~1 West Texas . . .. . .... . 5,679,200
183,200
So~th ~ntrnl Toxas ..... .. ... . 20,419,700
658, 700
1,568,050
51,550
'rexas C~~~~C : :: : : :: : : :: : : : 6,694,450
215,950
N MToLal Texas .. .. .. .... . 37,587,900
N~~h f:,i~o............ . . . . . . 1,257,050
---
Increaso or doorc.'I8o ovor
July, 1933
Daily Avg.
Total
+ 31,000
+ 1,000
+ 58,900
+ 1,900
+1,325.400
+42,755
9,300 300
+ 426,250
+13,750
-+1,882,250
800,100
+
-
96,100
15,500
+50,105'
+ 3,100
-- 506
Total District ... . ..... . 39,004,050
1,277,550
+1,012,850
+61,705
AUG:~:ru~;,~ RES:; ~ ~!"~. I
North Toxas.. .. .... .. .. .. .
Contral West Toxas.........
East Central Toxns... . .....
South Toxas...............
Toxas Coastal.......... .. ..
36
49
182
88
70
21
26
171
33
47
Total Texas ........ .
425
New Mexico ........... .. . .
North LouisIana .. . ..... .. . .
6
1
4
a
15
17
10
51
20
2,409
5,428
1,315,205
21,518
55,859
14
113
25
298
3
5
6
14
o
1,400,419
23,114
960
459
464
306
aOl
26
15
133
148
1,424,403
1,083,113
9
August totals, distriot . ... .. .
July totals, dlstriot. .. . . .. . .
-"1111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111I1111111111111111111111l1l11l1l1l1l11l1l1l11l1lrF.
!
I
!!JI III 111111111111 11111 III III III III 11111111111111 11111111111 1111111111111111111 11111111 11111111 11111111 1111111111111 II 11111111 II 1111111111 11111 II 1111111111111111 II L:
§
;:
g
g
CRUDE OIL PRICES
Toxas Coastal (34 gr. and above) ............ .. .. .... ..
North Toxas and North Louisiana (40 gr. and abovo).....
·Prioe paid for oil, 46 gr. and above.
" '•. ".
"".1.
1933
$ .99
.92
1932
51 . 00.
1.00
§
;:
=,
~'IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII11111111111111111111111111111111111111111111111111111111111111111111111111,
A considerable decline was witnessed in
the valuation of building permits issued
during August at principal cities in the Eleventh District,
but the reduction as compared with August last year runOWlt.
ed to only 4.2 per cent. The month's volume amounted to
$972,107, as against $2,009,479 in the previous month, and
$1,014,495 in the same month last year. The number of
construction permits reported during the month totaled
1,552, as compared with 1,085 in July, and 1,527 in August
last year.
11111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111 1111111111111111111111111111111111111111111111111111£
August, 1033
-:---Amarillo
Aust' .......
n
In . ........
Ccnumont ... '"
n~H)US Christi . .
Elpns .........
Fort'W ........
Oalvost~rth .....
liouston n .. ....
~rtArth;;~ ::::
al n Antonio .. ..
WI~~~ePOrt . .. ..
I--
~
Building
1111111111111111111111111111111111111111111 111 11111111111111 11111111111111111111111111111111111111111111111111111111111 1111111111111111111 111111 IIffi
-
~llllllllllllllllllllllllllllllllllll l lllllltll l llllll III1III1IIIIIII11111111111111111111111111 1 1 1 11 1 11 1 1 1 11III 1 I I I1 I IIIIII111II1111I111111111 1 111 1 1 111111 1 111111 1 ~
(Oiiststistioa eompiled by Tho Oil Wec1dy, Houston, Texas)
1,210,900
40,550
26,100
UISH\IH\ , .. . . ....•....
nounced by major purchasers. The increases were substan.
tial enough in amount to bring the level of prices to the
highest point reached during the current year.
Wiohii,; 'F~li8: : :
Total ....
No.
Valuation
19 S 22,714
88
95,145
123
12,114
28
18,360
373
180,684
48
22,295
95
105,351
94
29,636
261
235,655
90
15,821
125
92,880
155
07,576
22
32,923
31
10,953
--- S
1,552
August, 1982
No.
Valuation
14 S 34,340
72,654
83
85
10,606
14,(){)8
36
335
255,300
44
03,001
117
78,4 80
239
36,562
208
183,480
ao
8,349
144
122,643
136
65,577
20
26, 738
18
3,478
- - - --- - - 072,107
1,527 $1,014,495
Percontage chango
valuation over
yenr
- 33 .9
+ 31.0
- 38 .5
+ 30 .2
- 20 .3
- 76 .0
+ 34 .2
- 18 .9
+ 28 .4
+ 89.5
- 24 .3
+ 48 .8
+ 23 .1
+ 214 .9
- -4.2
-
July, 1983
No.
Valuation
22 $ 35,233
188,514
86
40,269
57
11,633
31
154,091
215
22,944
·18
473,140
78
54,440
94
932,320
158
7,299
38
78,165
108
30,736
88
23,038
10
7,653
43
- ----1,085 $2,009,479
iiillllllllllllllil 111111111111111111111111111111111 111 11 11111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111
Percontago ohange
valuation over
month
- 35 .5
- 31.3
- 60 .9
+ 57 .8
+ 17 .3
- 2.8
- 77.7
- 45 .6
- 74 . 7
+116.8
+ 18.8
+217 .5
+ 42 .9
+ 43.1
--- 51.6
Eight Months
Peroentage ohange
1933
1932
valuation over
No.
Valuation
No.
period
Valuation
144 S 133,133
175 $ 249,747
46.7
712
1,134,492
721
4,878,068
- 76 . 7
644
124,139
677
243,021
48.9
186
116,215
209
115,881
.3
+
2,735
1,457,005 2,237
1,873,417
22.2
205
140,929
309
253,572
-44.4
680
2,426,480 1,014
1,063,175
+128 .2
713
291,807 1,083
413,008
- 29 .3
1,418
2,320,782 1,660
2,142,089
+ 8.3
350
61,259
310
72,212
-- 15 .2
1,073
745,350 1,441
1,321,203
- 43.0
849
322,651
964
318,996
1.1
106
229,242
251
259,951
- 11.8
236
64,821
126
474,897
- 86 .4
10,231 S9,568,395 11,237 $13,679,327
- 30.1
+
111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII~
A . .
P tl d
ment nulls in ments from Texas mills during the month. This figure
T CIIVlty at or .a~l ce 't 'led during amounted to 198,000 barrels, as against 237,000 barrels in
A.ug ust b tl . d ~xas w~sl ~natent yfl c~~ a~ substantial the preceding month, and 386,000 barrels in the same month
decline~ 1 p~o uCtIO~ ane s l1p~11ends re ec 1l1~ The vol. in 1932. Inventories reflected a decrease of 6.0 per cent dm"
u~e
of 0 Itom leh.Plh·evlOus modnt a1n53 OaOOyebar ~olo. was 44 2 in'" August and at the close of the month totaled 719,000
h
u put, w IC amounte to
,
ane s,
'.
0
d . 1 605000 b
I
A
l,el'
cent
1ess llan
I
. J uI y, an d 529
the .level
barrels ' as compare WIll
,
arre s on ugust 31,
of .A..
In
. p~r cent. beIo w
.
ugust last year A smaller reductIOn was shown m shIp, 1932.
111 11111 1111111111111111111111111;111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII~IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII§
Centent
t
---
~~~~~~nr~d~!¥:;:~fl
i8".::::::::::: : ::::::: ::: :: : ::::::: : :::: :: : :::: :: ::::: : ::: ::::: : : : : : : : : : :: :: :::::
'en of month at Texas mills. . . . . .. . . . . . . . . .. . . . . . . . . . . . . .. .. . . .. . . . . .. .. .
Prod
~
PRODUCTION, SHIPMENTS, AND STOCKS OF PORTLAND CEMENT
(In thousands of barrel!)
August
1933
153
m
~
Percentage change from
August
July
1982
1933
-52. 9
-44.2
+1U
=l~:g
January 1 Percentage
through ehange from
August 31
yenr
2,306
_ 6.5
2,263
-12.5
§=
::
~
~
Ii
111111111 11111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111 11111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111 II 1111111111 11111 IlIlIIfi
MONTHLY BUSINESS REVIEW
8
----------------------------------------------------------------------------------------------------
SUMMARY OF NATIONAL BUSINESS CONDITIONS
(Compiled by the Federal Resel've Board of September 28, 1938)
The general level of industrial production declined in
August and the early part of September, reflecting reductions
in activity of industries in which there had been a rapid rise
in previous months. Employment and wage payments were
larger in August than in July.
PRODUCTION AND EMPLOYMENT
The Federal Reserve Board's seasonally adjusted index
of industrial production, which had been rising rapidly for
several months, declined from 100 per cent of the 1923·1925
average in July to 92 per cent in August. The principal
decreases were in the primary textile industries, in flour
milling, and in the output of steel ingots, which declined
from 59 per cent of capacity in July to 49 per cent in August.
Average daily output of automobiles declined somewhat
from the level of July. There were increases dUl'ing the
month in production of petroleum, nonferrous metals, and
cigarettes; and output of lumber and coal increased season·
ally. During September, reports indicate further reductions
in output of steel and flour; petroleum production slack·
ened under new restrictions and output of lumber decreased.
Increases in employment between the middle of July and the
middle of August, the latest date for which figures are
available, were general in most lines of industry, and there
were numerous increases in wage rates and reductions in
working hours. Compared with the low point of last spring,
there has been an estimated increase of 2,200,000 in num·
bel' of industrial wage workers. Value of construction con·
tracts awarded, as reported to the F. W. Dodge Corporation,
increased in August owing to' awards for public works, par·
ticularly highways and bridges; contracts for other types
of construction were in smaller volume than in July. An
increase of $1,000,000,000 in gross income of farmers for
the year 1933 was indicated by estimates O'f the United States
Department of Agriculture, primarily as a result of higher
prices for certain farm products, notwithstanding small crops
of grains, hay, and potatoes.
DISTRIBUTION
Sales by department stores increased in August and the
Board's index, which is adjusted for seasO'nal variations,
advanced from 71 to 75 per cent of the 1923·1925 average,
the highest level since the spring of 1932. The recent increase
in dollar sales reflects to a large extent advancing prices.
The volume of freight shipped by rail declined slightly duro
ing August on an average daily basis although an increase
is usual at this time of the year.
COMMODITY PRICES
The general average of wholesale commodity prices fluctu'
ated within a narrow range during August and early Sepi
Lember at a level about 17 per cent above the low point 0
last spring. Prices o-f individual commodities showed diveri
gent movements, decreases being reported for prices 0
domestic agricultural products, while prices of many manu'
factured goods, of coal, petroleum, and other industrial ra'!
materials, increased. During the second and third weeks 0
September prices of commodities in organized markets ad·
vanced considerably. Retail prices ot food continued to
advance.
FOREIGN EXCHANGE
In the foreign exchange markets the value of the doJlnf
in terms of the French franc declined from 75 per cent of
its gold parity on August 15 to 65 per cent on September 22.
BANK CREDIT
At member banks in 90 leading cities, there was a growth
of $200,000,000 in net demand deposits in the four week~
ending September 13, following a decline of $800,000,00
between the middle of June and the middle of August. Mar~
than half of the recent increase reflected a return of bankers
balances to New York City banks. The banks gradually. :e'
duced their holdings of United States Government secur 1Ue5
following an increase in the week ending August 16, wheJl
a new issue of Treasury bonds was sold, and on September
13 their holdings were in about the same volume as in ea rI
b
August. There was some increase in commercial lo.ans bo l
at member banks in New York City and in oLher le~diJ1~ ,
cities. Member bank balances at the reserve banks contin Ue
to increase during August and the first three weeks of September, and excess reserves of member banks reached $700,'
000,000. This increase reflected primarily additional pur;
chases of Government securities by the Federal reser" t
banks, which have averaged $35,000,000 a week since AUgr~s
] 6. Money in circulation, which usually increases at t.lld
season, has shown little change in the past month, indicaLJJ1~
a continued return from hoards. Money rates in the oPfe
market showed a renewed decline during A ugust and t 1
first half of September.
@FedFRASER