View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

MONTHLY BUSINESS REVIEW
OF THE

FEDERAL RESERVE BANK OF DALLAS
CHAS. C. HALL-W. J. EVANS
Assistllnt Federlll Re.serve Agents

C. C. WALSH
Chllirmlln lind Federlll Reserve Agent

(Compiled September 15, 1934)

Dallas, Texas, October 1, 1934

Volume 19, No.8

This copy is released for publication In morning papers--

Oct. 1

DISTRICT SUMMARY
THE SITUATION AT A GLANCE
Eloventh Foderal Reservo Distriot
August
Bank dobits to individual accounts (at 17
~oities) .......... , ....................... .

n:e~~:,~~!~\c;,r:n~·l~;;,c;,;b.;~ b;~k,j ~t' e~d' .

ef menth ............ . . ..... .. ...... · · ···
Reservo bank ratio at end of month ......... .
Building permit valuation at largor oonters .. . .
CommerolDl failures (numbor) .. ... . . ........ .
Commoroial failures (liabilities) . . ..... . ..... .
Oil produotion (barrels) . . ....... ..... ...... .

Cbango from

1084

July

$560,632,000
213,006
69.8%
S 1,363,712

17

S

146,426
33,108,000

+ 4.7%
+ 20 .8%
-

-

43 .2%

.6

+ 46 .2:t9

-

points

22.7~

60.6
4.4

0

The breaking of the long and severe drouth over ~he

~ajor portion of the Eleventh District and the eXpanSIO?

In the demand for merchandise in both wholesale and retaIl
channels of distribution were the outstanding developments
in this district during the past month. Sales of department
stores in larger cities reflected an expansion of .21 per cent
Over the previous month and were 4 per cent m excess ~f
those in August 1933. The small gain over last year IS
largely accounted for by the unusually large gain in sales
between July and August a year ago. This bank's adjusted
index of department store s~les.rose to 8l.8.per cent of .the
1923-25 average, the highest pomt reached smce t!te CUrIent
recovery set in, and compares with 8l.1 per cent m ~ugust,
1933, the previous high point. Distribution in most Imes of
wholesale trade showed substantial gains over both the
previous month and the same month last year. While mer·
chants are still adhering to a cautious policy in making
commitments, larger purchases are being mad~ to supply
the expanding consumer deman~ and ~o !u.rmsh a better
assortment of merchandise. DebIts to mdIvIdual accounts
at banks in principal centers were 5 per cent larger than
in July, and were 26 per cent above those in August, 1933.

While the. moderate to heavy rains which fell over the
greater portIOn of the district. during the past thirty days
c~me too la~e to change materIally the prospective productIOn. of major crops, as reported by the Department of
.the outlook for the agriAgnculture f?r Sept~mber
cult~ral and lIvestock. mdustnes IS much improved. In many
sectIOns, water supplIes have been replenished moisture i
sufficient for the planting of fall gardens and feed crops
S
and the seeding of small grains, and ranges are greening
It must be borne ~n min?, however, that some areas hav~
had only scanty ramfall, If any, .a~d are still suffering from
the eff~cts of the d.routh. AddItIonal moisture would be
benefiCIal over practIcally t~e whole of the district to overcome the accumulated defiCIency and to maintain the improvement that has occurred.

!,

The commercial loans of reporting banks in selected cities
reflected a substantial increase between August 8 and September 12, and on the latter date reached the highest level
since January. The daily average of net demand and time
deposits of member banks rose to $723,879,000 in August
which was $4,856,000 in excess of that in July and $143,:
771,000 above that in August last year. The reserve deposits
of member banks amounted to $120,04,1,000 on September
15, as compared with $114,,961,000 on August 15, and $55,.
225,000 on September 15, 1933. Federal reserve notes in
actual circulation on September 15 were substantially larger
than those .a month ~arlier or on th~ same date last year.
Member bank borrowmgs at the Federal Reserve Bank continued in small volume.
Construction activity showed some improvement in August. The valuation of building permits issued at principal
4.5 per cent over July, and was
cities reflected a gain
39 per cent greater than m August, 1933.

of

BUSINESS
An active demand for merchandise in
most lines of wholesale trade was visible
during August. Sales of dry goo~s, dru?s,
farm implements, and groceries registered materIal gams
as compared with both the previous month an~ the corresponding month of 1933. In the case of farm Imple~ents
and groceries, the July to August increases were conSIder·
Wholesale
Trade

ably larger than seasonal. While the distribution of hardware showed a tendency to lag, this is not surprising in view
of the large gains in the volume of business during the
past year. Collections of dry goods and grocery firms
reflected large seasonal gains in August, but they were
smaller in the other reporting lines.
The distribution of dry goods at wholesale reflected a

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

2

MONTHLY BUSINESS REVIEW

further seasonal increase of 65.8 per cent over the previous
month, and exceeded that of a year ago by 50.4 per cent.
Retailers bought heavily during the month in order to stock
fall merchandise and to meet improved consumer demand.
Reports indicate buying in rural sections is expanding.
While wholesalers' stocks on August 31 declined as compared with those at the end of the previous month, they
were 18.3 per cent larger than a year ago. Collections
showed an increase of 15.9 per cent over the previous month.
Sales of reporting wholesale drug firms in August
increased 14.4 per cent as compared with July, due to
seasonal factors, and were 10.0 per cent larger than in
August, 1933. The improvement appeared to be general
over the district. Collections reflected a further decline as
compared with the preceding month.
The business of wholesale farm implement firms during
August increased 16.1 per cent as compared with July,
which was greater than seasonal, and was 22.7 per cent
larger than in the same month last year. While the increase
over a year ago was smaller than the same comparison in
the preceding month, reports indicate that buying demand
is well sustained. Collections showed a substantial decline
as compared with July.

CONDITION OF WHOLESALE TRADE DURING AUGUST, 1934
Percentage of increase or decrease In-

Groecrics .........
Dry goods ........
Farm implements ..
Hardware ........
Drugs .. .. .... .. ..

Net Salea
Net Sales
Stocks
Ratio of eollecAugust, 1934 July 1 to date August, 1934 tiens during Aug
1
cern pared with compared with compared with to accounts ~nu
Aug., July, same peried Aug., July, notes outstandlDg
1933
1934
last year
1933 1934
on July 31
+26.6 +23.3
+16.6
+3.1 +3.5
70 .4
+50.4 +65.8
+ 6.9
+18.3 - 7.8
28 .6
+22.7 +16.1
+35.6
+15.3 - . 6
6.2
+ 1.3 - 3.3
+ 5.0
- 4.3 - 1.3
42.2
+10.0 +14.4
+10 .9
+14.2 - 2.8
42. 6

Retail
Trade

An increase in department store sales between July and August of greater ~an
the usual seasonal amount was an lInportant development in the retail trade situation in th.is
district. While sales were only 3.5 per cent greater I~
August this year than in the same month last year, ~t
should be borne in mind that a very large increase in reta~l
business occurred at this season a year ago.. This bank s
adjusted index of department store sales rose from 76.0
per cent of the 1923-25 average in July to 81.8 per cent
in August, and the latter figure compares with 81.3 per cent
in August, 1933. Sales for the first eight months of the
current year averaged 24.5 per cent larger than in the corresponding period last year. Reports indicate that there ,":as
good consumer response to offerings of fall merchandIse
in the first half of September, stimulated in part by the
noticeably cooler weather.

An increase considerably larger than seasonal occurred
in the sales of reporting wholesale grocery firms during
August. The volume of business exceeded that in the preceding month by 23.3 per cent and was 26.6 per cent above
that in the same month of 1933. Th~ increase over a year
ago was the largest reported since February_ Merchants in
some sections stated that buying demand is good with indications of further improvement. August collections were
materially larger than in the previous month.

Reflecting the receipts of fall merchandise, stocks of goods
at department stores were 12.3 per cent greater on August
31 than a month earlier, and were 10.8 per cent larger than
on the corresponding date last year. The rate of stock turn
over in the first eight months of 1934, was 1.93 as compare
with 1.82 in the same period of 1933.

A contrary to seasonal decrease of 3.3 per cent occurred
in the wholesale hardware business during August. Sales
remained, however, 1.3 per cent greater than a year ago
despite the fact that there was a heavy demand for hardware
at this season last year. Collections during August were on
a scale 1.6 per cent below those in the previous month.

There was a slight decline in August in the collections on
open accounts. The ratio of collections during August to
open accounts outstanding on August 1 was 34,,4, per cent,
as compared with 35.3 per cent in July, and 28.8 per cent
in August last year. Collections on installment accounts
reflected a slight increase.

d

BUSINESS OF DEPARTMENT STORES
Total sales (percentage):
August, 1934, compared with August, 1933 .. . .. . . ...•.... . . . . . .. . ..... . ...... . . .
August, 1934, compared with July, 1934.. .... . ...... ............ ... .............
January 1 to date compared with same perled last year ........................ ...
Credit sales (percentage):
August, 1934, compared with August, 1933 ........... . . .................... .... .
August, 1934, compared with July, 1934 ............... ... .. ........ .... ... ......
January 1 to date compared with samo peried last year ....... . , .... .... ....•...••
Stocks on hand at end of month (percentage):
August, 1934, compared with August, 1933 ......................................
Augu.t, 1934, compared with July, 1934 .........................................
Stock turnover (rate):
Rate of stook turnover in August, 1933 ...... ......... ....... ....................
Rato of stook turnover in August, 1934 .............. ............................
Rate of stook turnover January 1 to August 81 , 1933 .. ... ....... . .... . ..... . .....
Rate of stook turnover January 1 to August 31,1984 .. .... ..... ............ ... .. .
Ratio of August eolleotions to open acoounts receivable outstanding August I, 1934 .......
Ratio of August colleotions to installment accounts receivable outstanding August I, 1934.
Indexes of dopartment storo salcs:
Unadjusted-August, 1934 .......................................... . .........
Unadjusted-July, 1934 .... .... . .......................................... ....

~~i~:1~=~~I~~i9ii3~.'

.' : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : :
Indexes of department store stocka:

~~~i~:~~=~~I~~Sigir.4..... :::::::::::::::::::::::::::::::::::: ::::::::::::::

Adjusted-August, 1934 .... . ......... ......... ...... .. .. ...... .. .. .. ... .......
Adjusted-July, 1934 .........................................................

Dallas
+1.9
+31.0
+30.0

Fort Worth
- 5.9
+ 6.9
+15.2

Houston
+ 6.0
+15.1
+26 . 6

San Antonio
+ 8.6
+22.9
+23 .7

Others
+ 7.2
+16 .9
+20.1

Total District
+ 3.5
+20.8
24.5

+29.4

- 6.7
+11.8
+15.3

+ 5.8
+18 .7
+29 .5

+ 9.7
+26 .5
+26 .8

+ 5.3
+28.0
+18.2

+1.8
+26.8
+25.3

+15 .9
+15.8

+ 1.9
+ 5.8

+12.6
+12.0

+10 .0
+13 .4

+ 8.9
+11.0

+10.8
+12.3

- .7
+85.3

.25

.29
.26
1. 91
2.13
35 .4
15 . 2

.21
.19
1.53
1.03
28.2
10.4

.22
.21
1. 90
1.92
35.9

.20
.28
2.28
2.35
40.2

62 .0
52.7
86.1
78.7

62 .7
63.3
88.3
84.4

62.4
59 .2
90 .4
84.0

61.3
46.3
72.3
68 . 1

58.9
53.2
81.8
76 .0

54 .1
46 .1
52 .0
49 . 6

65.3
61.7
64 .0
67 .1

43.6
38.9
42 .7
43.7

40.3
37.8
40.7
48.4

54.6
54.6

.19
.18
1.56
1.59
31.0
19.1

.23
1.82
1. 98
34.4
14.0

55.6
40.6

·MONTHLY BUSINESS REVIEW
Following a slight increase in .the pre~i­
ous month, the business mortalIty rate m
this district during August dropped back
to the level of June, and continued to show a considerable
decrease as compared with the same month last year. The
total indebtedness of insolvent firms was the smallest reCommercial
Failures

3

ported since April, 1920. According to the figures issued
by Dun & Bradstreet, Inc., there were 17 commercial failures
in August with liabilities of $ 14~4.26, as against 22 insolvencies in the preceding month, owing $361,166, and 53
defaulting firms in the corresponding month a year ago,
whose liabilities totaled $1,559,123.

AGRICULTURE
While the prospective production of
major crops in the states .attached to the
Eleventh District, as estImated by the
United States Department of Agriculture, showed n~ material changes during August, the moder~te to heavy ramfall
OVer most of the district between the mIddle of August and
the middle of September was beneficial to some ?f the late
maturing crops, provided moisture for the plantmg of ~all
gardens and feed crops and the seeding of fall grams,
replenished water supplies, and improved pastures. There
are, however, many localities which have had no or ~nly
meager rainfall, and except in the more f~vored. sectIons
additional moisture will be needed to sustam the Improvements that have occurred.
Crop Conditions

The indicated production of cotton in this dist!'ict showed
a further decline during August. The ~roductIOn for th.e
Eleventh Federal Reserve District, as denv~d from the estImates, by states, of the Department of Agnculture on S~p­
tember 1, was placed at 2,878,000 bales as compare~ Wlt~
2,905,000 bales on August 1, and an actual productIOn 0
5,114,,000 bales in 1933. The reduction was accounted for
by the smaller forecast for Louisiana, Oklahoma, and New
Mexico. Only minor changes were made in estimat?s of the
Texas and Arizona crops. The forecast for cotton m Texas
Was 2,383,000 bales as compared with 4,428,000 bal;~
harvested last year. The per acre yield was placed at 1
Pounds as against 185 pounds a year ago. In the Department's September 1 report, the per acre yield for OklahoI?ili
Was revised downward to 80 pounds and compares W!
208 pounds in 1933. The per acre yield in New MexICO
and Arizona is likewise substantially lower than last ye~r,
b?t it is only slightly lower in Louisiana. Picking and gIrd
nIng in the older cotton areas have proceeded at a rap
.
r ate and are rapidly nearing comp l '
etIOn m the .southern
'
half of Texas. Ginnings prior to September 1 m states
attached to this district as reported by the Bureau of the
Census, are as follows': Arizona-6,000; Louisiana-94.,000; Oklahoma-14~000; and Texas-936,000.
The prospective yields for feed crops were slightly less
favorable on September 1 than a month earlier. The Teilis
corn crop did not turn out as well as expected, and . e
Department of Agriculture estimated the total productIOi
as 54.,084.,000 bushels, as compared with the Aug?~t
estimate of 56 930 000 bushels. While the crop for LOUISIana
"
't
an d New Mexico showed a slight improvement, 1 was more
11
than offset by the decline in Arizona and Oklah?ma. In a
states, except Louisiana the indicated productIOn for ~he
current year is materialiy lower than in either 1933 or or
~he five-year period, 1927 to 1931. ~here was no. c~a~~:
In the estimate for grain sorghums m Texas, whIC
33,824.,000 bushels. The Department of Agricul~ure stat:~
that the August and September rains may result m a Ib~
production of roughage, but that it is extremely dou I ~
1£ additional grains can be matured before f~ost: A If t
decline in the production of this crop was mdlcate or

d

I
h

NeW' Mexico, but an improvement occurred in Arizona and
Oklahoma. The yield in all states is materially smaller than
in 1933. There was little change in the indicated production
of hay crops, but production is falling considerably short
of a year ago.
The Texas rice crop showed an improvement following
the rains late in July, and on September 1 the production
was estimated at 7,590,000 bushels as compared with 7314,000 bushels indicated on August 1, and an actual pr~­
duction of 7,473,000 bushels in 1933. The preliminary
estimate on the acreage of Texas peanuts to be harvested
for nuts is 160,000 acres as compared with 167,000 acres
last year, but the ind~cated production is only 4-8,000,000
pounds of nuts as agamst a harvest of 103,54.0,000 pounds
in 1933. A substantial reduction in yield is also reported
for Louisiana and Oklahoma. The sweet potato crop in
Texas promises a production of 4.,14.0,000 bushels, whereas
6,240,000 bushels were harvested last year. In Louisiana
prospects for this crop declined from 5,320,000 bushels on
August 1 to 5,092,000 bushels on September 1, and the
latter figure compares with a harvest of 5,180,000 bushels
in 1933. While there was some improvement in this crop
in Oklahoma, the 640,000 bushels indicated on September 1
were substantially under the 1,404.,000 bushels harvested in
1933. The indicated production of pecans in Louisiana
Oklahoma, and Texas is materially below the harvest
1933.

of

The long and severe drouth over the
range territory in this district was partially relieved by the light to heavy rains which fell during
the latter part of August and the first half of September.
Stock water has been replenished in most sections, range
vegetation in. many areas h?s b~gun to gre~n, and ther~ is
sufficient mOIsture to permIt SOlI preI;'aratIon and seedmg
of winter grains. There are some sectIOns, however, which
have had little or no precipitation, and practically all the
district's range area will need additional rainfall to make
range feed. The best condition obtains in the Texas coastal
area where rains late in July brought about an improvement in range feed. Livestock in this area have also shown
a marked improvement, but there was a further deterioration
in most other areas.
Livestock

The condition of cattle ranges in Texas on September 1
was rated by the Department of Agriculture at ~O per cent
of normal which was the same as a month earlIer, but 27
points lo~er than a year ago. While the condition of cattle
on September 1 showed no change from the 60 per cent on
August 1 it was 28 points below that obtaining last year
at this l se~son. The condition of sheep and goat ranges delined 5 points during August, and at 50 per cent of normal
c ndition was 21 points below that on September 1, 1933.
co
' t
h
.
Rains have been very s~otty mhe seep .an d goat. terrItory
d there are some sectIons where conditIOns contmue very
an te . The condition of sheep declined 4, points in August,
acu
. d
.
and that of goats declIne 3 pomts.

4

MONTHL Y BUSINESS REVIEW

Movements
and Prices

Receipts of cattle and calves at the Fort
Worth market showed further large increases during August due to the continued heavy purchases by the Federal Government. The
number of hogs yarded, while greater than in the previous
month, dropped considerably under that in August, 1933.
The arrivals of sheep reflected a large decline as compared
with both the previous month and the corresponding month
last year.
.
Market prices for hogs made a sensational advance during

August
1034
154,070
72,300
34,834
22,474

August
1033
34,040
22,131
44,979
34,487

Change over
yenr
+120,070
+ 50,169
- 10,145
- 12,013

July
1934
84,813
39,082
33,938
43,074

COMPARATIVE TOP LIVESTOCK PRICES
(Dollars per hundredweight)
August

FORT WORTH LIVESTOCK RECEIPTS
(Number)

Cattle ....... . .. .
Calves ....... .. .
Hogs ... . .. ... .. .
Sheep . .. ....... .

the past month. Prices rose approximately $3.00 in August
reaching a top of $7.75 late in the month, but at the middle
of September the best offerings were selling at $7.15. The
market on most classes of cattle held generally firm during
the past month, and there was usually a good demand for
quality offerings. Sheep and lamb prices were fairly well
sustained, but the lack of quality receipts prevented a real
test of the market.

Changeover
month
+69,257
+33,218
+ 800
-20,600

Beef steers .. .. ...... .. ..... .. ........... .
Stocker steers ... .. . ........ ... . ......... .
Butoher cows ..... . ..................... .
Stocker cows .... ... ... .. ................ .
Calves .... .. . .. . .. .. . .. . . . .. .... .. .. . •..

r~~t:::::::::::::::::::::::::::::::::

August

1934
$6.15
3.50
3.50

1933
$5.65

4.50
7.75
3.00
6.25

3 .50
3.50
4.75
4.40
3.00
6.80

July
1034
$7.85

3:50
4:50

4.70
3.00
7.00

FINANCE
Condition 01
Member Banks
in Selected
Cities

A sharp rise in deposits and a substantial
increase in loans were the outstanding
features of reports of member banks in
selected cities during the five-week period
ending Septembel' 12. While loans on
securities, which totaled $50,436,000 on September 12, declined $7,948,000 during the five-week period "all other"
loans (largely commercial) rose steadily throughout the
period and on September 12 amounted to $139,330,000,
which was $14,121,000 greater than five weeks earlier, and
the largest total reported since January. As compared with
a year ago, total loans were $18,190,000 smaller, the decline
being about equally divided between the two classes of
loans. The net demand deposits of these banks increased
from $274,054,000 on August 8 to $302,077,000 on September 12, and on the latter date, were $85,722,000 larger than
on the corresponding date in 1933. Time deposits declined
$1,251,00Q during the five-week period, and on September
12 were $1,022,000 below those a year earlier. The investments of these banks in United States securities were reduced $5,680,000 between August 8 and{September 12, but
on the latter date were $55,212,000 larger than a year ago.
Investments in other stocks and bonds were increased $4,990,000 in the five-week period, and on September 12 were
$6,305,000 greater than on the same date last year. These
banks added $11,724,,000 to their reserves at the Federal
Reserve Bank between August 8 and Septemoer 12.
CONDITION STATISTICS OF MEMBER BANKS IN SELECTED CITIES
(In thousands of dollars)
Sept. 12,
United States scouritles owned ............ .
All other stocks, bonds, and securities owned.
Loans on seourities . .... ... .. .. .. . ... . ... .
All otherloans .......................... .
Total loans ............................. .
Net demand deposits .................... .
Time deposits . . ............... . ......... .
Reserve witb Federal Reserve Bank ....... .
Bills payable and rediscounts with Federal
Reserve Bank ......................... .

Sept.13,

Aug. 8,

1034
$172,438
58,407
50,436
139,330
189,766
302,077
122,208
84,561

1933
$117,226
52,102
59,689
148,207
207,956
216,355
123,315
32,741

1934
$178,118
58,417
58,384
125,200
188,503
274,054
123,544
72,837

None

None

None

Member bank borrowings at the Federal
Reserve Bank showed a further decline
during the past month, the total on September 15 being $151,000 as compared
with $398,000 on August 15. Total borrowings on Septem-

Operations 01
the Federal Reserve Bank

ber 15, 1933, amounted to $4,237,000. There were only 8
banks borrowing from the Federal Reserve Bank on September 15 as compared with 17 a month earlier and 1?9
a year ago. During the past month this bank made Industnal
Advances totaling $44,000 under the legislation enacte
during June authorizing the Federal Reserve Banks to make
such loans to provide established industrial and commercial businesses with working capital. There was no chan g
in the Federal Reserve Bank's holdings of bills purchase.
in the open market, and of United States Government secunties. While there was considerable fluctuation during thi
month in the reserve deposits of member banks, the tota
on September 15 amounted to $120,041,000, which was
$5,080,000 greater than on August 15, and $64,816,000
larger than on September 15, 1933. During the past month
there was a substantial seasonal increase in the actual circuS
lation of Federal reserve notes. The total on September 1th
was $48,766,000, as compared with $42,121,000 a mon
earlier, and $31,292,000 on the corresponding date la t
year. On September 15, 1933, however, there were outstan ing Federal reserve bank notes of $10,428,000.

d

d

CONDITION OF THE FEDERAL RESERVE BANK
(In thousands of dellaro)
Sept. 15,
Total cash reserves ...................... .
Discounts for member banke . .. , ........ .. .
Industrial advances ...................... .
Bills bought in the open market . . , ........ .
United States securities owned ... ..... .. .. .
Other investments ....................... .
Total earning as.scts ............ , . . .. ... . . .
Member bank reserve deposits ............ .
Federal reserve notes in notual oireulation .. .
Federal reserve bank notes in actual circulation ......................... ....... .

1934
$108,631
151
44
142

Sept.15,
1933
$ 54,445

4,237

NoDe

71,812
120,041
48,760

177
52,782
5
57,201
55,225
31,202

None

10,428

7~~~~

Aug. 15,
1934
S 96,750
308
3
142
71,475

None

72,018
114,901
42,121

NODe

Acceptances executed by accepting ba~S
in this district and outstanding at e
end of August totaled $235,683, as compared with $176,019 a month earlier, and $1,955,966 o~
August 31, 1933. Acceptances based on import and expor
transactions rose from $38,766 on July 31 to $82,641 oIl
August 31, and those executed against the domestic storll~e
and shipment of goods increased from $137,253 on t e
former date to $153,04,2 on the latter date.
Acceptance
Marlcet

MONTHLY BUSINESS REVIEW
Deposits 0/
Member Banks

The daily average of combined net demand and time deposits of member banks
reflected a further increase during the
past month. The average for August rose to $723,879,000,
representing a gain of $4,,856,000 over the previous month,
and $143,771,000 over the corresponding month last year.
While the average of both net demand and time deposits
?f country banks rose slightly, most of the increase occurred
In the average of net demand deposits of reserve city' banks.

August, 1933. The latter increase was the largest shown for
any month since April.
DEBITS TO INDIVIDUAL ACCOUNTS
(In thousands of dollars)

Abilene ..... ... .
Austin .. . ...... .
Beaumont .... .. .
Corsioana ...... .
Dallas ......... .
EI Paso ....... ..
Fort Worth ... .. .
Galveston ...... .
Houston ... ..... .
Port Arthur .... .
Roowell ........ .
San Antonio .... .
Shreveport ..... .
Texarkana< . .. .. .
Tucson ......... .
Waoo . . .... . ... .
Wiohita Falls ... .

DAILY AVERAGE DEPOSITS OF MEMBER BANKS
(In thousands olldollars)
Combined Total

Aug.,
Sept.,
Oot.,
Nov.,
Deo.,
Jan.,
FMeb.,
Br.,

April,
May,
JJune,
uly,
Aug.,

Net demand
depositB
1983 ...... $889, 177
1083. . .. .. 400,697
1033. . . . .. 486,027
1083. .. . .. 466,108
1038 ...... 494,176
1034 . ..... 506,009
1034... ... 532,717
1934 .... .. 536,366
1084 ... ... 523,397
1034... ... 510,000
1934 ...... 519,466
1934. ..... 521,383
1934 ..... . 527,054

Reserve City Banks

Time Not demand
deposita deposita
$100,031 $101,302
187,608
106,145
186,036
210,087
187,047
228,265
186,687
240,071
192,214
249,091
195,746
261,770
192,706
20~,291
192,648
267,838
192,830
253,762
102,712
260,460
107,000
266,210
196,826
200,001

Country Bank.

Time Net demand ' Time
depositB deposita deposita
$112,605 $197,875
$78,266
110,146
205,462
77,362
109,264
225,040
77,672
106,914
237,033
81,033
106,132
253,205
80,655
108,317
266,818
83,897
110,348
270,047
86,398
108,385
~72,064
84,381
107,015
266,659
84,033
108,140
202,338
84,684
109,697
263,009
83,116
112,632
200,123
85,058
111,561
260,993
85•274

August
1084
$ 4,837
28,668
10,130
2.626
159,124
16,544
56,326
20,635
127.589
5,200
1,744
50,374
27,747
4,773
0,607
11,192
10,527

August
1033
$ 3,834
14,757
11.520
2,207
124,396
12,097
40,839
16,145
108,444
4,430
1.714
30.751
28.514
4,807
4,848
9,417
8.082

Pereontage
ohange over
year
+20.2
+94 .3
+40.0
0.0
+27.0
+30.8
+20.3
+27.8
+17 . 7
+19.3

+

+ 1.8
+26.7

+18.0
- 2.5
+30.8
+18.8
+30.3

July
1934
$ 4,617
17,210
17,132
2,094
147.298
15,540
00,717
18,145
126,896
5,027
1,762
48,163
27.619
4,683
7,168
9,908
11,868

Peroentage
ohango over
month
7.1
+66 . 0
- 6.8
+20.6
8.0
0.4
- 7.2
+13.7

+

+
+

+ .6
+ 5.2
.5
+ 4.0
+ .5
+ 1.9
- 7.7
-

+13 . 0
-11.3

+

Total. .... $550.632
$430,988
+26.0
$525,733
4. 7
DIst;!o~~ludes the figures of two banke in Toxarkana, I\.rkansas. looated in tho Eighth

The amount of savings deposits of 130
banks in this district totaled $140,758,748 on August 31, which was 0.1 per cent
less than on July 31, but 7.0 per cent larger than on the
corresponding date in 1933. Most of the reporting cities
reflected increases over both comparative periods. The numbe~ of savings depositors .at 120 banks showed a slight
gam over that a month earlIer and was substantially greater
than a year ago.
Savings
Deposits

There was a seasonal expansion in debits
to individual accounts at banks in principal cities in the Eleventh Federal Reserve
District during August. The total for the
month amounted to .$550,632,000, which was 4.7 per cent
greater than in July, and 26.0 per cent above that for
Debits to
Individual
Accounts

5

SAVINGS DEPOSITS
August 31, 1984
Number 01

f

re6~~k~g
Beaumont. .. . .. .. .. .. . .. ..

.... ... ..... .....
W .. .. .. . . . .. . . . . ....

RI~:;'''
F

G~l~est~~th..... ...... . ....

~otlston .... ::::::::::::::::
Sor\Arthur................
S~n ntonio... ............
W roveport.. . . . . . . . .. .. . . .

w~b!" """'". ''''..''''. ''.
Alllo Ihta Falls . . . . . . . . .
ot ors. . . . . . . . . . . . . . . . .

Number of

.

d~~~it~~s

SBvings

dOP08itB
$ 3,409,370
24,492,619

3
9<
2
:
11"

~g~~

1~:~~:~I~

~

64.799

28,690,723

3
3
3
80'

21,091
10,606
5,766
52,995

laO

8,542
76,138
11,092

Amount of

1~:~~~

325.i76

4,707.2~1

1~:m:m
10,211,632

035
5'~~~'707
2
24'.095',340

II

August 31, 1933
Amount of
Numbor 01
savin~s
sBvings
doposlta
depositors
S 3,088.048
7.870
23,624,270
76,461
8,980,400
3~:~~
10,267.880
9,814,794
16,664
27.887,668
63,775
1,816,504
13,107,148
9,438,992
21.336
5,556,636
10391
2,427,926
5'463
20,643,378
50'.761

July 31, 1034
Number 01

Amount of

savings depooita
+10.4
4.1
+18.3
0.0
.1
2.9
6.1
+15.6
8.2
- 8.4
+18 . 9
+16.7

depositors
8,371
75,042
10,978
33,173
10,726
64.130
5,122
19,677
21,062
10,608
5,775
52,825

deposltB
$ 3,482,418
24,491,300
4,623,830
10,276,367
9,766,296
28,618,953
1,913,713
14,956,528
10,125,203
6,034.127
2,879,149
23,886,089

+ 7.0

824,943

Peroontage ohango

over year in

+

+
+

+
+

1~:~~~

""315.7i1

Totnl...........
$140,768,748
Sl3,t,553,634.
'Only 8 banke in Dnllas. 10 in Houston, and 72 in "All others" reported the numbor of savIDgs doposltors.

Rate o~arged customers on prime commeroinl pap~r suoh as that noW eligible for
R redlsoount under tho Federal Reserve Aot . ... ... ... .. . .. ..... .... .......... .
te oharged on loans to other banks scoured by bills receivable ... . .............. .
t~ on I~ans scoured by prime .took exohange or other ourrent oollat.eral (not
Inoludlng loans placed in other marketB through correspondent banke) .
Demond ............ . ... . ........ .. .. ... ·· .. ···· .. ··· .. · ······ .. · .. ..

n::

Oha~i~o~~ ~om.;,~;liiY 'p~pci~ ~co~;ed by w~rch~~";"~eocip~:et",::::::::::::::

tto
-.!o on oattle loons .. . .......... ... .. ..... .. ..... ..... . . .... . ............... .

-

2-6
4-6

6-8
5-6

5-6
4-8
2-7
57t-6

6-8
6-8
8
6-8

Percentage change
over month in
savings deposita

$140,893.951

-

.7

0.0

+ 1.8
.1
+ .7
+ .8
+ .7
+1.3
+ .9
-15.7
+ .3
+ .9
-

.1

Houston

San Antonio

Waco

17t-7
6

5-7

5-8

5-6

6

3-6

6-10
5-10
6-8
6-10

4-7
5-7
3-7
7- 10

6-8
0- 8
6-8
8- 10

Fort Worth

5~

6-8
11-8
5-6

8

INDUSTRY

The August receipts of cotto~seed at both
Texas and United States mIlls reflect~d
J
a large seasonal increase over those m
uly due to the movement of the new cotton crop, and they
Were also larger than in August, 1933. The volume of cotCottonseed
PrOducts

EIPnso

savin~s

Prevailing rates:

SEPTEMBER DISCOUNT RATES
DallM

savings

ton seed crushed and the amount of cottonseed products produced, while substantially greater than in the previous
month, reflected a noticeable decline from the corresponding month last year. Stocks of cake and meal on hand on
August 31 at United States mills showed a large decline as

6

MONTHLY BUSINESS REVIEW

compared with those on July 31 and on August 31 last year.
Mill stocks of hulls increased in August, but at the close of
the month were considerably lower than on the same date
last year. Holdings of linters declined in August, but were
larger than on August 31, 1933.

decline from the previous month and were only about haH
those in August, 1933. The total for the month, which
amounted to only 267,562 bales, was the lowest for any
mon th in three years. There was a noticeable decline as
compared with a year ago in the takings of practically all
importing countries.

STATISTICS ON COTTONSEED AND COTTONSEED PRODUCTS

Cottonseed reoeived at mills
(tons) ...... . . . ........ . ...
Cottonseed orushed (tons) .... .
Cottonseed on hand August 31
(tons) . ....................
Crude oil produced (pounds) . . .
Cake and meal ~roduoed (tons)
Hulls produced tons) . ...... ..
Linters produced (running
bales) ... . ................ .
Stocks on hand August 31:
Crude oil (pounds) ..... . .....
Cake and meal (toos) ....... . .
Hulls (tons) ..... .. .. .. . . ....
Lioters (running bales) ... . ....

Texas
United States
August 1 to August 31
August 1 to August 31
This seasen Last season This season Last season
177,677
98,429

157,091
122,008

271,145
105, 761

236,040
235,033

182,106

134,386

300,023
59,322, 191
00,633
54,808

221,945
71,562,448
107,335
65,966

38,450

.. '177',948
98,205
60,657

Textile
Milling

The domestic consumption of cotton in
the United States amounted to 420,94.9
bales in August, which reflected a sub·
stantial expansion over the 359,372 bales consumed in
July, but it fell materially under the consumption of 588,902
bales in August, 1933. It will be recalled, however, that
consumption a .year ago was exceptionally large, due to
unusual conditions. Stocks of cotton on hand in consuming
establishments on August 31 showed a further decline from
the previous month, and were below those on the corre·
sponding date in 1933.
The August production of cloth at reporting textile mills
in Texas reflected a slight gain over that in July, but showed
a decline as compared with August last year. Orders on
hand at the end of the month were smaller than a month
earlier or a year ago. While stocks reflected a substantial
decline between July 31 and August 31, they were materially
larger than at the end of August last year.
COTTON CONSUMED AND ON HAND
August

August

1934

Cotton.growlng states:
Cotton oonsumed ....... . . ..
On hand August 31 inConsuming establishments .
Publio storage and com·
presses . . .... .. .... . . ..
United States:
Cotton oonsumed . ... . . .... .
On hand Augu.t 31 inConsuming establishments .
Publio storage and oom·
presses .... ... .. . ... . ..

August

38,471

96, 147
42,923
73,411

COTTON MOVEMENTS THROUGH THE PORT OF GALVESTON
(Bales)

1033

386,159

464,706

August 1 to August 31
This season Last season
336,169

464,705

809,683

420,949

588,002

August

1934
47,738
63,140

1033
49,483
52,075

August 1 to August a1
This season Last season
47,738
63,140
496,091

40,483
52,075
432,405

COTTON-GALVESTON STOCK STATEMENT
(Bales)
August 31,

August 31,

For Grent Britain ........... .. ........ . .... .... ..... .
For France . . ................. .. . .. . . ............... .
For otbor foroign ports . ..... .. .... . ...... . .......... . .
For ooastwiso ports .. . .... . .......... . .. .. ..... , .... . .
In oompresses and depots . . ... .. .. . ..... . ... . ......... .

1034
2,000
1,900
26,600
1,000
464,501

1033
2,000
2,000
10,500
1,000
407,005

Total. . . . .. . ... . .. . .. . ............... .. .

496,091

432,405

COTTON MOVEMENTS THROUGH THE PORT OF HOUSTON
(Bales)
August
Receipts ....... . ...... . ... . . .
Exports . .. . .......... ...... .
Stooks, August 31. ... . . .. .. . .

August

1934
64,48 1
83,217

1038
166,090
185,784

August 1 to August 31
This season Last season
64,431
83,217
821,586

166,000
185,784
1,135,711

SEASON'S RECEIPTS, EXPORTS, AND STOCKS OF COTTON AT ALL
UNITED STATES PORT8-(Bales)
August 1 to August 31
This senson Last season
Receipts .. . ...... . ..... .. .. . .............•. .. . ••.....
Exports: United Kingdom ........... . ............... .
France .............. .. ..... .. ........... . . .
Italy ..... . .......... .. ... . ... . . . ... .. .... . .
Germany ......... . ......... .. . . ... . .. . ... ..
Other Europe . .... . ........ .. ........ ... ... .
Jur an ........... . ..... . .. .. .. . . . ... .. .•....
Al other countries .. ...... .. . ...... . ... . .... .

§~~t:~fhe'l~~£~[ltsti~iicci 'si~tes 'po~t8 'Auga '3'i:::::: :::
ui

324,502
43,002
7,824
22,624
43,980
47,980
67,779
33,473
267,562
2,445,847

511,960
108,722
55,613
32,216
92,739
81.563
117,481
42,293
530,627
2,057.552

682,202

5,550,421

Reoeipts .... . ...... . . .... .. . .
Exports ... . ..... . .... . ..... .
Stooks, August 31. .... ...... .

5,414,060

420,949

1,155,556

5,824,025

SPOT COTTON PRICE8-(Middling Basis)
(Cents per pound)

588,902

1,031,218

-

5,799,467

Cotton
Movements

Receipts of cotton at Galveston during
August were substantially lower than in
July and slightly smaller than a year
ago; at Houston they were more than double July receipts
but fell materially under those in August, 1933. The com·
bined exports of cotton from Houston and Galveston showed
a noticeable decline as compared with both July this year
and August last year. Stocks of cotton on hand at both
ports on August 31 were smaller than a month earlier, and
those at Houston continued substantially under those on
the corresponding date last year.
Exports from all United States ports reflected a further

August, 1934
High
Low
New york .............................. .
New Orleans ....... . . . . . .... . .... .. . .. . . .
Dallas .. ................. ... .... . .. .... .
Houston . ..... ... .. . ....... . .. . .. .. . .. . ..
Galveston .. .... . . . . . .. . .. .......... . .. . .

Petroleum

13.U5
13 .80
13. 35
13 . 70
13 .75

13 .00
12.93
12.50
12 .00
12 .90

Sept. 15,
1034
12 .05
12 .01
12.55
12.00
12 .00

The production of crude oil in the
Eleventh Federal Reserve District reflect·
ed a decline in August. The month's output totaled 3~,.
108,000 barrels, as compared with 34,628,950 barrels .1n
July, and 39,604.,050 barrels in August last year. The dally
average decline between July and August amounted ~o
49,063 barrels. Drilling activity showed a noticeable curtail·
ment. There were 799 completions in August, of which 581
wells were producers of oil, whereas in July 1,154 wells

MONTHLY BUSINESS REVIEW

The daily average production in Texas fields during
August totaled 995,950 barrels, which was 48,122 barrels
less than the July average, and 214,,950 barrels below that
in the corresponding month last year. The major portion
of the decline from both comparative months occurred in
the East Texas field. There were slight declines in the daily
average production in Louisiana and New Mexico as compared with the previous month.

were completed with 819 wells producing oil. The initial
output declined from 3,205,54,7 barrels in July to 2,114,607
barrels in August.
OIL PRODUCTION-(Bnrrels)

North Texas .... . ............
Central West Texas ... ... ....
East Texos .. ..... . ....... . . .
South Toxos .......... ... ....
Toxos Coos tal. ....... . .... . ..

'I

IncreMe or deoreMe over
July, 1034
August, 1034
Doily Avg.
Total
Doily Avg.
Total
674
20,000
110,150
3,008,050
181,200 + 273,100 + 8,810
5,017,200
-64,650
462,100 -2,004,150
14,325,100
56,050 :1= 40,300 + 1,500
1,705,450
210,850 + 6,802
170,550
5,473,050

-

-

ORUDE OIL PRIOES

--- - - - --005,050 -1,401,800 -48,122
668
20,700 47,550 8,450 - 278
24,500 - - - --- - - --Total Distriot . ....... 33,108,000 1,008,000 -1,520,950 -40,003
---

SerJaf4,

Total Texas ......... 30,874,450
New Moxioo ....... ... ....... 1,474,050
750,500
North Louisiana ..... .........

TexM COM tal (34 gr. and above) ...................... .
North Texos (40 sr. and above) ..... ...... ............ .
North LoulBiono (40 gr. and above) . .... , .............. .

$1.12

1.03
1.08

Sept.15,
1933
$ .99
.92
.92

(OilstatlBtics oompiled by '''rhe Oil Weekly", Houston, Texos)

The valuation of building permits issued
in August at fourteen principal cities in
the Eleventh District not only showed substantial increases
over the previous month and the same month last year, but
also exceeded, with one exception, the amount reported in
any of the preceding twelve months. The total volume was
$1,353,712, as compared with $932,005 in July, and $972,107 in August last year. All cities except two participated
in the gain over July.
Building

AUGUST DRILLING RESULTS

North Texas ...............
Central We.t Toxos .. ... ....
Eost Texos ........ ...... ..
South Toxos .......... . .. . .
Toxos Coastal .... . .........
Total Texas .. . ....
New Mexioo ... . ...........
North Louisiana ........... .
August totals, Distriot ......
July totals, Distriot .........

Completions
182
00
314
00
85

Produoers
100
53
207
47
56

Gas
Wells
10
3
5
7
3

Foilures
03
34
12
36
20

Initial
produotion
27,870
125,885
1,890,457
15,200
30,014

1,164

819

34

301

3,205,547

- 2,089,426
-- -- -- -171 - 28
562
761
24,540
4
9
13
641
·s
12
10
25
-.-- -- -- -- 2,114,607
187
31
581
790

BUILDING PERMITS
August, 1034
No.

Amarillo ..... . .
Au.tin . . ... .. ..
Beaumont . . .. ..
Corr,u. Cbri.ti ..
Dol os . . .......
EIPoso ....... .
Fort Worth .. . . .
GOlvC8tOll .... . .
Hou.ton .. .. ... .
Port Arthur ....
Son Antonio ....
Shreveport .....
Wooo .. . ... . ...
Wiohita Falls ...
Total. . ....

Valuation

No.

- - - - - -19
29 $ 16,842
97
U6
30
308
67
00
132
220
54
144
200
21
82

194,514
74,749
38,735
195,077
35,001
101,430
27,433
328,350
10,023
69,001
130,540
31,500
00,812

July, 1084

Augu.t, 1988

88
123
28
373
48
95
04
261
90
125
155
22
31

------1,050 $1,353,712 1,552

Percentage change
valuation over
year
Valuation
$ 22,714

-

95,145
12,Jl4
18,300
180,684
22,295
105,351
20,030
235,055
15,821
92,880
97,576
32,023
10,053

$ 072,107

- 25 .0
+104.4
+517 .0
+U1.0
+ 8.3
+ 57.0
- 3.7
7.4
+ 39.3
- 36.0
- 25.6
+ 43.0
- 4.3
+729 .1

No.

-

-

+ 30.3

Pereeotnge ohonge
valuation over
month
Valuation

53 $ 22,324
04,427
83
39,254
80
18,505
25
155,304
340
13,035
38
68,308
70
27,210
103
250,305
191
15,948
64
53,358
115
130,007
160
10,019
14
29,321
86

- 24.6
+106 .0
+ 00.4
+109 .3
+ 25 .0
+168 .5
+ 00.3
.8
+
+ 26 . 6
- 37.2
+ 29.5
+ 6.8
+ 58.2
+200 .7

-- --- --+ 45.2
1,430 $ 082,005

While the manufacture of Por~land
cement at mills in Texas was appreCIably
curtailed in August it showed a large increase over a Yh ar
ago, and the amoudt of shipments reported was larger t an
in either the previous month or the same month last ye?};
Production totaled 267,000 barrels, as comp,are! WIt
321,000 barrels in July, and 153,000 barrels m ugust,
Cement

January I through August 31
Percentage ehange
1034
1988
vnluation over
period
No.
Valu.tion
No.
V.luation
227 $ 205,771
144 $ 133,133
+ 54.6
608
625,588
712
1,134,492
- 44 .9
234,611
710
644
124,139
+ 89.0
221,455
106
186
JlO,215
+ 90.6
1,007,283 2,735
3,045
1,457,005
+ 10.8
327
177,840
295
140,029
+ 26.2
555,578
635
680
2,426,480
- 77.1
043
306,802
713
201,897
+ 25 .7
1,501
3,107,205 1,418
2,320,782
+ 37.8
98,080
368
350
61,250
+ 60.1
1,060
514,108 1,073
745,350
- 31.0
1,259
657,184
849
322,651
+J03.7
220,063
147
196
229,242
1.1
197,018
530
230
04,821
+204.0
11,502

S8,885,847 10,231

$ 9,568,305

--- 7.1

1933. There were 292,000 barrels of cement shipped from
these mills during the month, as against 288,000 barrels
in the preceding month, and 198,000 barrels in the corresponding month last year. Stocks on hand at the close
of August, which amounted to 603,000 barrels, were 4.0 per
cent less than a month earlier and 16.1 per cent below the
level of a year ago.

PRODUCTION, SHIPMENTS, AND BTOCKS OF PORTLAND CEMENT
(In thou.and. of barrelB)

d: .

§b~~~~~nf~!J¥=:~rIi~.'.:: ::: :::::::::: : : : :::::::::::::: : ::::::::::::::::: ::::::::::::: ::: ::::::::::::

Stoeks at end of month at Toxos mills .... ................................ . .

August
1034
267
202
603

','Ii Peroentogo
,,; " oh.ngo from
Augu.t
July
1033
1034
+74.5
-16.8
+47.5
+ 1.4
-16.1
- 4.0

January 1 PeroClltoge
through chango from
Augu.t 31,
year
1034
2,524
+0 .5
2,474
+0.3

8

MONTHLY BUSINESS REVIEW

SUMMARY OF NATIONAL BUSINESS CONDITIONS
(Compiled by the Federal Reserve Board. September 2.6. 1984)

Total output of industry, which usually increases at this
season, showed little change in August. Factory employment
and payrolls increased between the middle of July and the
middle of August by about the usual seasonal amount.
Distribution of commodities at department stores showed
a more than seasonal growth.

at this season, showed little change in August. Shipments
of miscellaneous freight showed no seasonal expansion,
while shipments of livestock increased considerably .. De·
partment store sales increased by an amount substan~Ially
larger than is usual in August, and were 2 per cent hIgher
than a year ago .

PRODUCTION AND EMPLOYMENT

COMMODITY PRICES

Output of basic industrial products, as measured by the
Board's index, which makes allowance for usual seasonal
changes, declined from 75 per cent of the 1923-1925 average
in July to 73 per cent in August. At steel mills production
continued to decline during August and the early part of
September, contrary to seasonal tendency; in the middle of
September a slight increase in activity was reported. Output
of automobiles, which had been maintained at a relatively
high rate during the spring and early summer, declined in
August. Lumber production showed an increase. In the
cotton textile industry production was in larger volume in
August than in July~ but was retarded by the strike in the
first three weeks of September. At meat packing establishments output in August was larger than in any other recent
month, accompanying heavy marketings of cattle from
drought areas. Factory employment showed a seasonal increase between the middle of July and the middle of August,
reflecting considerable growth in employment in the wearing apparel, canning, and meat packing industries, while
employment in the iron and steel industries and at railroad
repair shops declined. The value of construction contracts
awarded, as reported by the F. W. Dodge Corporation, was
about the same in August as in each of the four preceding
months. Department of Agriculture estimates as of September 1 indicate a corn crop 40 per cent smaller than the
average for the five years 1927-1931, and other feed crops
also are expected to be unusually small. The condition of
pastures on September 1 was poorer than in any other recent
year but some improvement has been reported in the early
part of September. The spring wheat crop, estimated at
93,000,000 bushels, is about one-third of the five-year average and the winter wheat crop is also small. The cotton crop
is estimated at 9,300,000 bales, a sharp reduction from other
recent years.
DISTRIBUTION
Volume of freight-car loadings, which usually increases

Wholesale prices of commodities increased in August and
the first week of September, reflecting sharp advances in the
prices of farm products and foods. Hog prices advanced
rapidly during the month of August, and in the latter part
of the month cattle prices also showed a marked increase.
Since the beginning of September, prices for both hogs and
cattle have declined somewhat, and in the middle of the
month there have also been decreases in the prices of wheat
and cotton. In August, as in other recent months, there was
little change in prices of commodities other than farm
products and foods.
BANK JCREDIT

A seasonal increase in demand for currency by the public
and an increase in government deposits at the reserve banks
were reflected in a decline in member bank reserve balances
between the middle of August and the middle of September.
On September 19 reserve balances were about $1,700,000,000 in excess of legal requirements. There was little
change in the volume of reserve bank credit during August
and September. Total loans and investments of reporting
member banks showed little change between August 15 and
September 19; loans, other than security loans, increased by
$170,000,000, and holdings of securities by $50,000,000,
while security loans declined by $200,000,000. The increase
in loans other than on securities occurred largely at banks
in New York City and in the western districts, and reflected
chiefly a growth in· direct loans to customers for ordinary
commercial purposes and for financing the harvesting of
crops. The banks' holdings of acceptances and commercial
paper, which also reflect current business financing, increased during the period. Short-term money rates continued
at low levels. Yields on both United States Governments
and corporate bonds increased during August and the first
half of September.