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MONTHLY BUSINESS REVIEW
OF THE
FEDERAL RESERVE BANK OF DALLAS
CHAS. C. HALL-W. J. EVANS
Assistant Federal Reserve Agents
C. C. WALSH
Chairm an and Federal Reserve Agent.
(Compiled September 15, 1935)
----
Volume 20, No. 8
Dallas, Texas, October 1, 1935
This eopy is relensed for p ubIientlon In mor ning pnpers--
Oct. 1
~===================================================================
INTERPRETATIONS OF THE FEDERAL RESERVE ACT,
AS AMENDED
The Federal Reserve Act was amended in numerous
particulars by the Banking Act of 1935. The latter Act
Was approved by the President and became a law on
August 23, 1935.
-
Any reader of this Review who desires an interpretatiqn of any part of the Federal Reserve Act, as amended
-
-
DISTRICT SUMMARY
THE SITUATION AT A GLANCE
Eloventb Federal Reserve District
August
1635
Ba~~ dobits to individual accounts (at 18
DOltICS) ... . ........ .. .. . .. .. .. . ...........
epartment store sales .... . .. . . .............
cs?rvo bank loans to membor banks at end
month . .... . ........... . .... . . . . . . ....
B~1:I.ve bank ratio at end of month .. . ...... .
CUI Ing ~rmit valuation at larger centers ....
C~~:~~c!al fa!lures 1~u~'?c!) . . . .......... . . .
0'1
etal fallures hablhtlCs) . ...... . ... . ..
....!..,Produotion (barrels) .. . . . . ........ .. .....
n
nO
---
by the Banking Act of 1935, or an interpretation of the
regulations issued in pursuance thereto by the Board of
Governors of the Federal Reserve System, should submit
his request for same to the Federal Reserve Agent in care
of the Federal Reserve Bank of Dallas, rather than to the
Board of Governors of the Federal Reserve System at
Washington, D. C.
Change from
July
$652,654,000
...... .....
- 121 ~
+ 13 . 1 0
$
+$76,760
- 10 .0 points
+ 126.0%
+ 6 4 . 7~
+ 458. 3%
+ 3 .6 0
686,704
57 .5%
$ 4,533,833
37
$ 1,008,007
33,604,000
~he continuance of generally favorable conditions in the
agtlcultural and livestock industries, a further expansion in
~~tail and wholesale trade, and a sharp increase in constructIn activity were constructive forces in evidence in the
1 eventh District during the past month. Retail buying at
arger cities, as reflected by department store sales, was 13
per cent above the July volume and exceeded that of the corresponding month last year by 8 per cent. This bank's index
of department store sales, adjusted for seasonal variations,
ros~ to 88.3 per cent of the 1923-25 average in August,
whIch Was the highest level recorded during the current
Year. Wholesale distribution reflected a seasonal expansion
Iter the previQus month, and in a majority of reporting
ne~ the volume of business exceeded that of a year ago by
w~de margin. While there was a seasonal recession in colelhons at retail establishments and in some lines of wholeSa e trade, the volume of payments compared favorably with
a year ago.
leading cities was 126 per cent greater than in July, and
235 per cent larger than in August, 1934,. The aggregate
value of permits issued in the first eight months of the
current year was 129 per cent above that for the same period
last year and was the largest for any similar period in
four years.
Despite the deterioration in some crops during August,
the physical volume of agricultural production in this district, as estimated by the Department of Agriculture in its
September 1 report, will greatly exceed that of 1934, and
in the case of some crops production will be the largest in
several years. The prospective production of cotton was
reduced in August as a result of depredations by insects and
the lack of moisture in some areas, and the continuance of
insect activity remains as a potential danger to the crop,
particularly in those sections where the crop is later than
usual. The heavy rains which have fallen in practically all
sections during the past three weeks provided moisture for
the maturity of late crops and for fall seeding operations.
Ranges and livestock are in good condition generally and
indications are that there will be sufficient range and dry
feed to carry stock through the winter in good shape. There
is a broad demand for young stock for restocking purposes.
Financial statistics reflected no important changes. The
commercial loans of member banks in selected cities showed
a seasonal expansion between August 7 and September 11,
and their investments were increased substantially during
the same period. Federal Reserve Bank loans to member
banks on September 15 were moderately higher than the
low volume a month earlier. The daily average of combined
1 Construction activity during August rose to the highest net demand and time deposits of member banks amounted
evel in several years. The valuation of building permits at. to $825,316,000 in August, as compared with $812,870,000
i
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
2
MONTHLY BUSINESS REVIEW
in July, and $723,879,000 in August, 1934. Federal reserve
notes in actual circulation totaled $60,84,3,000 on September
15, which was practically the same as a month earlier, and
$12,077,000 greater than a year ago.
BUSINESS
Wholesale
While varying trends characterized the
wholesale trade situation during August,
reports received from wholesale firms in
most sections of this district compared favorably with those
of other recent months and in many cases continued to show
better business than in the same month a year ago. The total
volume of sales in all lines was larger than in July, but
in the case of groceries and dry goods the percentage of
increase was less than is usual at this season. These two
lines were the only ones reporting a decline as compared
with August, 1934,. In the lines of hardware and farm implements the comparisons with a year ago were the most favor.
able recorded in a number of months. Inventories which
were materially larger than a month earlier or a year ago
were reported on August 31 in the case of all lines except
dry goods. Total collections during August in the lines of
drugs, hardware, and dry goods were greater than in July,
but in the case of the other two reporting lines seasonal
decreases were registered.
Trade
The combined sales during August of reporting wholesale
dry goods firms in this district, while 64..2 per cent greater
than those in July, were still 0.7 per cent below the volume
of the same month last year. The gain over the previous
month was not participated in by all firms, and was somewhat smaller than seasonal. Stocks on hand declined 2.6
per cent in August, and on the last day of the month were
14,.8 per cent less than a year ago. There was a moderate
gain over July in the amount of collections during the
month.
Distribution of groceries at wholesale increased by less
than the usual seasonal amount last month and was on a
scale 3.4 per cent smaller than that of August, 1934. In this
connection it should be recalled that an appreciable pick-up
in business occurred at this time last year. The volume of
sales during July and August of the current year was 4.3
per. cent larger than in the same two months a year ago.
WhIle a decrease from the previous month was shown in
total collections, a number of firms reported an improvement.
The upward trend in the distribution of hardware through
wholesale channels, which started in May, continued to ~e
in evidence last month. August business registered a gain
of 7.3 per cent over that of the preceding month, which waS
to a large extent seasonal. There was an expansion of 32.7
per cent as compared with the same month last year, where·
as the corresponding increase in July amounted to 18.2 per
cent. A general improvement over the previous month's col·
lections was reported in August.
The demand for drugs evidenced a seasonal expansioi
of 14,.3 per cent during August, which is considered ?
favorable significance in view of the sizable gain shown In
July. The amount of business reported was 23.1 per c~nt
above that of the same month last year. A substantial In'
crease in collections was reflected as compared with July.
An increase of 38.9 per cent, which was due largely to
seasonal influences, occurred in the demand for farm im~le.
ments at wholesale during August. The sales of reportl~g
firms were more than two and a half times as large as In
the corresponding month last year. Favorable crop co~'
ditions during August and the early part of September In
most sections had a stimulating effect on business. A smaller
decline than is usual at this season was witnessed in the
month's volume of collections.
CONDITION OF WHOLESALE TRADE DURING AUGUST, 1035
Percentage of increase or decrease inNet Sales
Net Sales
Aug., 1935
July 1 to dato
compared with compared with
Aug., July, samo period
1034
1935
last yenr
Groceries ..... ... . - 3 .4 + 1.6
+ 4 .3
Dry goods ........ .7 +64.2
.1
Farm implements .. + 153 .6 +38.0
+ 134.3
Hardware . ... .. .. + 32 .7 + 7 .3
+ 26.4
Drugs .... . ....... + 23 .1 +14.3
+ 23.0
Retail
Trade
Stimulated by the demand for fall merchandise, the Augus! bus~ne~s of ?~partf
ment stores located In pnnCIpal Cltles. o
the Eleventh District evidenced a larger than seasonal 1f1'
crease over July, and also continued in substantially larger
BUSINESS OF DEPARTMENT STORES
Total sales (percentage):
Dallas
Fort Worth
August, 1085, compared with August, 1034
+ 8.4
+10 . 1
August, 1935, compared with ~uly, 1035 ... : : : : : : : :: : : : : :: :: : ::: :::::: : ::: .... . ..
+16.5
January 1 to date compared With same period last yenr ....... ... ... . .... .. : ......
+12 .5
+10 . 1
. . ....
Credit sales (percentagc):
+ 3 .7
August, 1035, compared with August 1034
August, 1086, compared with July 1935 ........ . .. . .. . " . . . ... . .•. " . ........
+11 .3
+11 .8
+18 .5
+12.1
January 1 to date compared with ~amc pc;i~(i i~t'y~;:: : ::: : :::: : :::::: : : ::"
+14.0
+ 8.1
Stocks on hand at ond of month (percontage):
.....
AuguBt, 1035, compared with AuguBt, 1034
AuguBt, 1036, compared with July, 1036
+ 1.0
.1
+21.2
Stock turnover (rato):
+ 7.8
Rato of stock turnover in August 1034
Rate of Btock turnover in AuguBt: 1086:: : :: : :: : : : : ::: :: : : :: ::: . . ..••..........•.
.26
. 10
Rate of stook turnover January 1 to August 31 1084
'" . . .. .. . .. ... ...
.28
.21
2 . 13
Rate of stook turnover January 1 to August 31: 1085 : : : : :: : : : : : : : ....... . ....... .
1.62
2.28
1.68
Rat~o of AuguBt collect~ons to ?pen accounts recoivable outstanding Aug~~t ·1935·.·. : : : : :
36 .0
28.7
RatiO of August collectIOns to Installmcnt accounts receivable outstanding August 1 1936
14.8
Indexes of department Btore sales'
,
.
11.8
Unadjusted-July, 1035 .... : . . ........
Unadjustod-August 1986
. " . " .... . .. '" ....... . .... . . . .........
61.9
63.4
67 . 1
68 .3
:':':'::::::::::::::::: :::::::::::::::::::::::::: :::::::
02.4
84 .5
Indcxes of department store Btooks'
.. . . . .................. .. ....
03 .2
06.2
Unadjusted-July, 1935 .... . ........ . ...
UII~djusted-Au~ust, 1936 ... . .. . ...... ::: : : : : : : : : .............. . .. .. ...... . ..
44 .3
60 .6
AdluBted-July, 936............. ....
. .. .. .......................
64 .6
65.2
47 .6
AdjuBtod-August, 1036 ........... : .... :: : : :: ::::::: ::: :: : :: : ::::: : :: ::: ::::: :
66 .8
52.5
68 .0
.. .
..... .......... .. .......... .... ..... ..
....... ........ .... ..... ..... ....... .... .
i:
~~l~:~=i~~~it~81~35·.·.
Stocks
Ratio of collec·
Aug., 1035 tions during AUg.i
compared with to accou nts d~n
Aug., July, notes outstan \Dg
1034 1035
on July 31
+ 3 .2 + 3 .1
74 .3
- 14.8 - 2 .6
34 .3
+37.4 + 5 .0
8 .6
+ 2 .7 + 2.2
44.2
+ 6 .0 + 3 .4
56 .3
-
Houston
+ 5.6
+ 9 .8
.4
San Antonio
+7.4
+ 16. 0
+ 7 .5
Others
+ 6 .7
+ 8. 1
+ 4 .0
Total District
+ 7.7
+13 .1
+ 5.9
+13.2
+16 .2
+ 5.0
+ 10 .1
+23 .0
+10.2
+ 7.8
+15.7
+ 7 .3
+11.0
+17.5
+10 .0
- 5.0
+ 8. 6
+16 .6
+15.4
- 1.7
+ 11 .4
+ 1.7
+14 .4
-
.23
.21
.23
1.02
1. 88
37.9
.28
.26
2 .36
2.21
42.4
16 .8
62.S
65.4
89 .7
04 .8
50.3
56 .2
74.0
70 .2
58 .6
63.6
83.7
88. 3
3S. 7
40 .1
43. 6
30.3
42.9
47 .5
40 .3
48.0
40 .8
57 .2
54.7
66.1
.18
. 19
1.59
1.67
34. 1
15 .0
.24
1.02
1.90
36 .7
14 .0
MONTHLY BUSINESS REVIEW
volume than in the corresponding month of 1934. Total
sales of reporting firms were 13.1 per cent greater than in
J uly, and exceeded those in August, 1934" by 7.7 per cent.
The increased activity at retail is also indicated by this
bank's seasonally adjusted index of department store sales,
w.hich with one exception rose during the past month to the
hIghest point reached since August, 1931. The index stood
at 88.3 per cent of the 1923-25 average for August this year,
as against 83.7 per cent for July, and 81.8 per cent for
August, 1934,. Total sales at reporting retail firms during
the eight months ended August 31 were 5.9 per cent greater
than in the like period of 1934,.
Stocks of merchandise at department stores on August 31
reflected the usual purchases of fall merchandise. Dollar
volume of inventories was 14,.4, per cent greater than on
july 31, and 1.7 per cent larger than on August 31, 1934,.
The rate of stock turnover during the first eight months of
3
1935 was 1.99, as compared with 1.92 in the same period
of 1934.
Collections on open accounts during August reflected a
seasonal decline while collections on installment accounts
remained practically the same as a month earlier. The ratio
of August collections to open accounts outstanding on August 1 was 35.7 per cent, as against 38.4 per cent in July,
and 34,.4, per cent in August last year.
Commercial
The number and liabilities of defaulting
Failures
firms in this district during August exceeded those of both the previous month
and the same month last year, and were at the highest level
reached since October, 1933. The report compiled by Dun
& Bradstreet, Inc., showed that 37 failures occurred during
the month, as against 19 in July, and 17 in August last
year. The indebtedness of insolvent firms rose to $1,098,907
in August, which compares with $196,834 in the preceding
month, and $146,426 in the same month last year.
AGRICUL TURE
Crop Conditions
Growing conditions for crops in this district were generally favorable during the
past month. While dry weather during
August in northwest Texas and in localities elsewhere reduced prospective production for some crops, particularly
Cotton and grain sorghums, the indicated production for
Some minor crops was increased. Since the latter part of
A~gust heavy rains have fallen in most sections of the disnct an~ the imp~'oved moisture situation will be of m~terial
enefit In matunng late crops and for the fall seedmg of
small grains.
t
.The cotton crop reflected considerable deterioration in
thhis district during August. The estimated production for
t e district, as compiled by the Board of Governors of the
Federal Reserve System from the reports of the Department
of Agriculture, declined from 4,561,000 bales on August 1
to 4,,166,000 bales on September 1, but the latter figure is
Considerably larger than the 2,934,000 bales harvested last
Yhar. According to the Department of Agriculture, most of
t e reduction occurred in northwest and north central
a~eas of Texas where prospects a month ago were for a
YIeld well above average. In the former section crop
~rogress was retarded by lack of moisture and some insect
I amage, while in the latter area, especially in the Blackands, insect damage is unusually heavy. The Texas crop
Was estimated at 3,4,67,000 bales on September 1 as comPared with 3,851,000 bales on August 1 and 2,406,000 bales
~ year ago. Decreases in prospective production were also
leported for Oklahoma and Louisiana, but small increases
\V.ere forecasted for Arizona and New Mexico. Picking and
gInning of cotton have been slow in Texas, due to the lateness of the crop, but have made good progress in Louisiana
and Arizona.
While the September 1 report of the Department of Agriculture lowered somewhat the estimated production of feed
crops in this district, considerably better than average yields
are in prospect. The estimated corn crop for Texas, Louisiana, and Arizona remained unchanged from a month
earlier, and the crop in New Mexico showed some improverent. While the forecast for Oklahoma declined 4,488,000
Us~els, an average yield is in prospect in the southeastern
POl'tlon of the State. The Texas crop promised a production
of 111,326,000 bushels, whereas only 45,873,000 bushels
were harvested last year. The prospective production of
tame hay on September 1 was practically unchanged from
a month earlier, while the indicated harvest of wild hay
was substantially increased. The estimated yield of grain
sorghums was reduced substantially in Texas, Oklahoma,
and New Mexico as dry weather in important producing
areas affected the crop adversely during August. The forecast for Texas was reduced from 86,042,000 bushels on
August 1 to 72,603,000 bushels on September 1. The latter
figure compares with a harvest of 17,928,000 bushels in
1934 and a five-year average production of 52,882,000
bushels .
The outlook for minor crops is very favorable . The
Department of Agriculture estimated the Texas rice crop
on September 1 at 9,072,000 bushels as compared with a
forecast of 8,910,000 on August 1, and a harvest of 7,738,000 bushels in 1934. Harvesting of this year's crop,
however, has been delayed by intermittent showers. The
yield of the Texas peanut crop was placed at 104,500,000
pounds as compared with a production of 51,350,000
pounds in 1934,. The production of peanuts in Oklahoma
was estimated at 35,750,000 po~nds, which is approximately
double last year's harvest. The broomcorn crop in Texas,
Oklahoma, and New Mexico promises a greatly increased
production as compared with a year ago. On the basis of
the September 1 estimate, the production of pecans in
Texas, Louisiana, and Oklahoma will aggregate 57,600,000
pounds as compared with 25,420,000 pounds harvested in
1934,. The most noticeable increase occurred in Texas, where
the crop was placed at 36,000,000 pounds as against 13,000,000 pounds produced a year ago. While the estimated
production of sweet potatoes was reduced in Texas and
Oklahoma, the September 1 forecast was materially higher
than last year's production.
The condition of ranges and livestock in
this district continued generally favorable dul'ing the past month. Ranges in the southern half of
New Mexico and southeastern Arizona were considerably
improved by the August rains and livestock are taking on
flesh. While the hot, dry weather during August caused a
noticeable deterioration in ranges in much of west and
northwest Texas, this situation was partially corrected by
the heavy rains late in August and early in September.
Livestoclc
----------~~~~~mlli-----------
~4_____________________~MO~N~TH~LY~B~U~S~IN~E~S~S~R~E~VIE~W~____________________-
, Is 0 f sh ee p declined
.
ly
lief Corporation. The August arnva
seasonally as compared with July, but were apprOXImate
double those in the same month last year.
.
Iantx
' int
The cattle market displayed considerable I~regu
August. Choice quality steers were usually III demanfi a
strong to higher prices and yearlings held gener~lly m:TI:
but cows and calves tended toward lower levels. WIth s . k t
er supplies during the first half of September, the rna::
on most classes was steady to higher. Throughout th~ per~o a~
there was a strong demand for young stocker amma .
firm to higher prices. The hog market was rather. erratlci
After reaching the season's high point toward the mIddle 0
August prices declined sharply during the subsequen\t'0f
According to the Department of Agriculture, the condi- weeks but there was some recovery during the first ha ~
tion of cattle ranges in Texas was rated at 80 per cent of . September. Sheep and lamb prices were generally firm 0
normal on September 1 as compared with 86 per cent on higher.
August 1, and 50 per cent a year ago. Sheep and goat
ranges declined 5 points in August, but t~e September 1
FORT WORTH LIVESTOCK RECEIl'TS
condition figure of 82 per ce':lt was 32 p.o~nts hIgher than
(Number)
on the same date in 1934. WhIle the condItIOn of cattle was
Change over
July
August
2 points lower on September 1 than a month earlier, it was
August Changeover
month
1935
1035
yenr
1034
24 points higher than the 60 per cent reported for that date
+ 0,123
Cattle .......... . 70,166
70,043
- 78,118
157,284
+ 7,172
28,042
Calves. "" ... "
35,214
- 37,072
72,286
last year. There was a decline of 1 point in the condition
+10,547
11,735
Hogs"" . ..... . 22,282
- 12,647
34,020
- 18,828
of sheep and goats during August,. but the gains ~s comSheep .......... . 44,458
63,286
22,533
+21,925
pared with a year a~~ were 22 pomts an~ 18 POI?tS, respectively. The condItIOn of ranges and h~estock m Ne~
Mexico and Arizona reflected a moderate Improvement m
COMPARATIVE TOP LIVESTOCI{ PRICES
August, and on September 1 was materially better than a
(Dollars per hundredweight)
year ago.
July
August
Pasturage is limited in those areas, but the prospects. for
winter range feed are greatly improved. In other sectIOns
of the district, ranges and pastures ?enerally carry a good
supply of feed and this, together WIth the lar?e supply of
dry feed, should carry livestock through the ~mter m ~ood
shape. Stock water is reported to be ?I?ple III all se~tIOns.
Livestock generally are ill good condItIOn. Comme~Clal reports indicate that there is a stron~ demand for hv~stock
for restocking, and that range tradmg .has been actIve at
higher prices. The Department of Agncultur~ stated th~t
the tendency to hold young stock for restockmg ranges IS
almost universal. There has also been a good demand for
wool and mohair at higher prices.
Movements
and Prices
The Fort Worth receipts of cattle, calves,
and hogs during August reflected a substantial increase over the preceding
month, but were materially lower than a year ago. The
heavy receipts of cattle and calves in August, 1934, were
due largely to purchases made by the Federal Surplus Re-
d
Beer steers . . . .......... .. . ... . •.. . ...•...
Stoehr steers . . .. .... ...... .... .... . .•. . .
Heifers and yearlings . ... ... " . " .... . . . . .
Butcher cows .. " ... " .... " •. .. . . . • " . . .
Stocker cows ... . .... .. .... . . . • . .....• . ...
Cnlves ..... .. .. " .. """ .. " .. ... . ,, .. .
l~:~':':'::::::::::::::::::::::::::::::::
August
1035
$10.50
7.25
0.50
5 .00
4.00
7 . 25
11 .85
4.25
8.00
1034
1035
$ 6.15
$ 0.75
3 .50
6.25
3.50
.io:i;i;
"4:50
"8:00
7.75
3.00
6.25
6.50
10 .60
4.00
7.50
FINANCE
Operations of
the Federal Reserve Bank
Federal Reserve Bank loans to member
banks reflected a moderate increase during the last half of August, but there was
some liquidation during the subsequent
two weeks. At the middle of September there were 33 banks
indebted to the Federal Reserve Bank for $643,000, which
compares with borrowings of $577,000 by 32 banks on
August 15, and an indebtedness of $151,000 by 8 banks on
September 15, 1934. During the month there was a decline
of $19,000 in outstanding advances to established industrial
and commercial businesses for working capital purposes
and $20,000 in commitments to make such advances. This
bank's holdings of United States Government securities were
reduced $5,000,000 between August 15 and September 15,
but on the latter date they were $5,000,000 greater than a
year earlier. The reserve deposits of member banks totaled
$108,702,000 on September 15, which represents a recession
of $12,386,000 as compared with a month earlier and $11,339,000 from those a year ago. Federal reserve notes in
actual circulation amounted to $60,843,000 at the middle
of September as compared with $61,044,000 on August 15,
and $48,766,000 on September 15, 1934. During the past
month the seasonal increase in the demand for currency
and the replacement of national bank notes retired from
circulation were offset by the return of $4.,000,000 in Federal reserve notes previously withdrawn by the Treasurer
of the State of Texas.
CONDITION OF THE FEDERAL RESERVE BANK
(In thousanr\a of dollars)
Total eneh reserves .. . . .... ......... . . .. "
Discounts for member banks ..... .. ....... .
Otber bills discounted ..... . . . . . . .. . . ..... .
Industrial advances .. . . . . . .......... .. .. . .
Commitments to make iudustrial advances ..
Bills bought in the open market .. . .. ... . .. .
United States Government securities owned ..
All other investments ..... . . . . . .......... .
Total earning nasals ... .. .. .. ......... .. . .
Member bank rcaarve deposits ........ ... . .
Federal reserve notes in actual circulation .. .
Sept. 15,
1035
$111,375
643
None
1,826
428
122
76,475
None
70,066
108,702
60,843
Sept. 15,
1034
$108,631
151
None
44
None
142
71,475
None
71,812
120,041
48,766
August 15,
1035
$110,837
577
None
1,845
448
122
81,475
None
84,019
121,088
61,04 4
et
The loans and investments 0 f roemb
.het
banks in selected cities reflected a furt ek
substantial increase during the fiv~-~:st.
period ending September 11. The l~rgaments of these banks in the direct oleo
tions of the United States were increased $4,546,000 ~t;\'~OO
August 7 and September 11, but the total of $157,
'tre'
on the latter date was $14,949,000 less than on the ~o nds
sponding date in 1934. Holdings of other stocks and 0 eks
on September 11 were $3,363,000 greater than five we 00
earlier, and $28,250,000 larger than a year ago. Loan~eJJ\'
securities declined $496,000 between August 7 and Sep 12,
bel' 11, and were $8,84,5,000 lower than on September d !I
1.934. "All other" loans (largely commercial) showe eek
further seasonal increase of $4,416,000 during the five- w
Condition of
Member Banks
in Selected
Cities
MONTHLY BUSINESS REVIEW
period, but were $1,309,000 lower than a year ago. The net
demand deposits of these banks amounted to $329,538,000
on September 11 as compared with $349,244,000 on Aug·
ust ~ and $302,077,000 on September 12, 1934. The current
dec!me was due largely to the change in the method of comrutmg these deposits, necessitated by the Banking Act of
935, which became effective August 24, 1935. Their time
~eposits reflected a slight decline from both comparative
ates. Reserve balances with the Federal Reserve Bank
totaled $67,257,000 on September 11, which was $11,44,7,000 less than five weeks earlier, and $17,304,,000 lower than
a year ago.
August, 1934. At all except four of the eighteen reporting
cities there were appreciable gains as compared with a year
ago, and at six cities the totals exceeded those of July.
Daily average net demand deposits at
member banks in this district showed a
further sizable increase during August.
These deposits also reflected a larger gain over the same
month last year than was reported in July. Average time
deposits during the month were somewhat greater than in
the preceding month but continued to be smaller than a
year ago. The combined daily average of net demand and
time deposits amounted to $825,316,000, as compared with
$812,870,000 in July, and $723,879,000 in August, 1934.
Deposits of
Member Banks
CONDITION STATISTICS OF MEMBER BANKe IN SELECTED CITIES
(In tholl.and. nf dollars)
United Statcs seeuritiC!' owned ... .. . . ..... .
AII other stooks. hands, and Reeuriti .. owned.
Lo
I\.lIa~th~~ Iseourities . . . ............ . .... . ..
Total lOa! oans .... .. .................... .
N td
IS .. .. .. ........ .. . . . . . . . . . . . . ..
'f.e d'nnnd depOSita .. .. ... ....... . ..... .
R;~v:~~taib~ Fccicr~i 'ricscr'v'c R'~I;k: : : ::
nl~aY.ble and redisoounls with tho Federal
orve Bank ..... . .. .. .... .. . .. ... . . ..
Sept. 11,
Sept. 12,
August 7,
1935
$157,489
86,657
41,591
138,021
179,612
329,538
121,448
67,257
1934
$172,438
58,407
50,436
139,330
189,766
302,077
122,293
84,561
1985
$152,943
88,294
42,087
133,605
175,692
349,244
121,808
78,704
None
None
Nono
Debits to
Following the large non-seasonal increase
IndiVidual
which was reflected in July, a substantial
Accounts
falling-off was witnessed in the volume
.
of debits to individual accounts at banks
In principal cities in this district during August. The
~onth's total charges amounted to $652,654,000, as against
_ 4,2,808,000 in the preceding month, and $559,017,000 in
DEBITS 'I'D INDIVIDUAL ACCOUNTS
(In thousands of dollars)
~bil~no . . .. "'"
BustlO .. . .... . ..
Cco'!mont .. . .. . .
D~~~ana ..... . .
EI Pas· · ······· ·
FLO .. .. .. .. .
GOl Worth .. " ..
II" veslon .... . . .
l' o~s~n .. ...... .
~ rthur . . . . .
San ~~~.. ; ..... .
Sh
0010 .... .
l'e~~~k~~:' .... .
'fucaOIJ.
. . .. . .
TI
........ .
Wn~~:· · ·· ·· ·· · ·
Wiohit~ 'Falis: : : :
August
August
1935
$ 5,207
23,695
27,203
2,250
173,407
18,488
64,505
20,586
167,732
6,264
2,387
64,241
28,745
5,088
6,809
10,460
11,185
13,742
1934
$ 4,837
28,668
16,130
2,525
159,124
16,544
56,326
20,635
127,589
5,290
1,744
50.374
27,747
4,773
6,007
8,385
11,102
10,527
Peroentago
ohange over
year
+ 7.6
- 17.3
+68 .6
- 10 .9
+ 9.0
+11 .8
+ 14 .5
- .2
+31.5
+ 18 .4
+30 .9
+27.5
+ 3 .6
+ 19 .2
+ 4.0
+24.7
-.1
+30 .5
July
1985
$ 4,815
26,661
20,181
2,460
168,570
20,306
66,746
20,651
266,039
6,061
2,783
58,200
20,408
5,734
7,136
10,957
11,010
14.691
Peroentago
ohauge over
monlh
+ 8. 1
- 11.1
+34 .8
- 8.5
+ 2.9
- 9.0
- 3 .4
-.3
- 37.0
+ 3. S
- 14 .2
+10 .2
- 2.3
-.8
- 7.6
- 4.5
+ 1.6
- 6.5
TOlal..... S052,654
$559,017
+16 .8
$742,808
- 12 .1
~Inoludcs the figures of Iwo banks in Toxarkana, Arkan.... , locatad in the Eighlh
D·IIII rlol.
:--
5
DAILY AVERAGE DEPOSITS OF MEMBER BANKS
(In Ibousands of dollars)
Combined Tolal
Reserve City Banks
Country Banks
Not demand Time Not demand Time Not demand Time
deposita deposita deposita deposita dOpOSita depOSita
Aug.,
Sepl.,
Dot.,
Nov.,
Deo.,
Jan.,
Feb.,
Mar.,
April,
May,
June,
July,
Aug.,
1934 ... . . . $527,054
1934 . . .. . . 557,318
1934 . . .. .. 583,558
1934 . . .... 596,441
1934 .. .... 597,645
1935. .. ... 590,459
1035 .... .. 609,125
1035. . .. .. 605,672
1035 ... . .. 606,348
1935 . . .... 603,787
1935.. . .. . 609,260
1935 . ..... 618,475
1035 .. .... 630,736
$106,825
194,215
194,618
106,512
105,380
196,436
197,155
193,304
198,840
194,524
193,253
194,305
194,580
$260,061
275,831
287,250
202,685
286,965
279,110
289,957
204,281
299,163
296,770
300,625
308,892
326,406
$111,551
109,110
100,459
111,082
111,630
113,255
112,586
112,019
112,252
113,128
112,838
112,752
111,826
$266,903
281,487
206,308
303,756
310,680
311,349
319,168
311,391
307,185
307,017
308.635
309,583
304,330
$85,274
85,105
85,150
85,430
83,750
83,181
84,569
81,375
81,507
81,306
80,415
81,643
82,754
The reports of accepting banks in the
Eleventh District as of August 31 showed
total acceptances of $653,4.66 executed by
them and outstanding on that date. This amount represents
a decline of 35.5 per cent from the $1,013,064 outstanding
a month earlier, the reduction being proportionately divided
between the volume of acceptances based on import and
export transactions and that executed against the domestic
shipment and storage of goods. On August 31, 1934, the
total outstanding was only $235,683.
Acceptance
Market
Reports received from 125 banks in the
Eleventh Federal Reserve District that
have savings departments showed a total
of $152,4,64.,540 in savings deposit accounts on August 31,
as compared with $152,166,127 a month earlier, and $140,4,21,445 on the same date last year. An increase in the
number of savings depositors was also recorded in the case
of both comparisons, there being a total of 329,632 at 114
of the reporting banks on the last day of August, as against
329,608 on July 31, and 319,056 at the close of August,
1934,.
Savings
Deposits
SAVINGS DEPOSITS
g~U:lOnt . .. .. .• . .........
~1;W:: : :::::::::::: : :::
August 31, 1935
Amount of
Numbor of
aRvinga
savings
deposita
depositors
over yenr 1n
savings deposita
July 31, 1935
Numbor of
Amounlof
savings
snvin~s
depOSitors
deposIts
Pereentage ohange
over month in
savings deposita
+
+
+
+
+
+
+
+
+
+
1.0
1.1
.5
.1
.5
.8
.3
.7
.4
1.0
1.3
.3
$152,464,540
319,056
$140,421,446
320,608
329,632
+ 8.6
Total. ..... ...... .
125
"Only 8 banks in Dallas, 10 in Houslon, 5 ill San Antonio, and 68 banks in "All olhers" roportad the numbor of savings depositors.
$152,166,127
+
.2
.. ... ... .. .....
8,996
76,005
11,660
34,071
16,978
66,862
5,371
17,810
22,264
10,852
6,196
50,767
8,642
75,138
11,092
33,113
16.808
64,709
4,846
16,236
23,203
10,687
5,761
48,831
$ 3,397,136
24,481,438
4,707,201
10,269,124
9,823,815
28,696,723
1,026,962
15,150,322
10,183,054
6,089,443
2,886,707
22,808,625
Poroontage o~ange
$ 3,613,674
25,515,649
5,685,394
11,175,568
10,320,040
31,770,890
2,107,116
16,313,980
10,570,274
6,346,330
3,104,651
25,624,561
3
9"
2
3
4
11"
2
6"
3
3
3
76"
$ 3,640,303
25,241,344
5,714,585
11,184,657
10,375,893
32.029,338
2,113,698
16,423,872
10,614,187
6.283,471
3,144,691
25,689,501
August 31, 1984
Amounlof
Numbor of
savings
savin~s
doposlta
depOSitors
8,998
77,106
12,209
34,866
16.035
66,543
5,343
17,652
22,255
10.846
6,077
50,688
G~lvC8t~~h . . . .. .. . ..• . .. .•
...... ....
IIouston
. ......
l' t ""
.......... ... ..
s~~f;~~r
Sh
DlO ........ .. .....
\V!~~eport . . . .............
W' h''''''''''''''''''''''
AllOot~: Foils ...... . .... . ..
rs .. . ........... ...
"'-
Numbor of
regorlin g
nnks
+ 7.4
+ 3.1
+21.4
+ 8.9
+ 5.6
+11.6
+ 9.7
+ 8.4
+ 4.2
+ 3.2
+ 8.9
+12 .6
- - -
~6____________________~M~O~N~TH==LY~B~U~S=IN~E=S=S~R=E_V_IE_W
____________________ ___
SEPTEMBER DISCOUNT RATES
Dallaa
Rato oharged ou.tomera on primo eommeroial papor .uoh aa that now eligiblo Cor rodiaoount under the Fedoral Reaervo Act ............. : .... ...... ... .......... .
Rato charged on loan. to otbor banka .ooured by b,ll. rcoOlvablo .. .. ... ... . . .. .... .
Rato 011 loan•• oour.ed by prime .took cxcbango or otber current collnteral (not
including loana placed in otber markets through eorreapondont bank.):
Demand ........................................................... .
Time ......................................... ; ....... .......... ... .
Rato oharged on commodity papor BCOured by warohouse receIpts. eto .......... .... .
Rato on cattlo lonna .. .... ..... ... . ....... . . . .......... ... ..... . . .. . ........ ..
EI Paao
Provailing ratoo:
Fort Worth
Hou.ton
San Antonio
WIIDO
3-6
1*6
4-5
5-8
5-6
1*8
4- 6
3-7
4- 6
5-6
6
5-5~
4
5-8
2*8
5
6-8
6-8
7- 8
6-8
5-10
5- 10
1-8
6-10
3-7
4- 7
3-7
5- 10
6-8
6-8
6-8
8-10
6-8
6-8
5-6
8
INDUSTRY
Coincident with the movement of the new consumption with the result that stocks of cotton held tt~
1935 cotton crop the receipts and crush- consuming establishments on August 31 were unseasona
ings of cottonseed at both Texas and smaller than a month earlier, and less than on any co rre'
United States mills in August reflected a substantial season- sponding date since 1924.
al increase over July, but these activities continued on a
Operations at Texas cotton textile mills during. Aug~s:
smaller scale than a year ago. Output of cottonseed products
were
on a slightly higher scale than a month earlIer, U
at all domestic mills during the month evidenced a seasonal
increase over the previous month, and while a reduction was they remained considerably below those a year ago. Ord~rgs
witnessed as compared with August, 1934, production com· for finished products on hand August 31, w.hI'le con t'm Ulnks
pared favorably with the ten-year (1925.34) average. De. relatively light, were slightly greater than m July. Stoe a
mand for cottonseed products, as measured by shipments of goods held at the close of the month were less than
during the month, evidenced a trend similar to that in the month earlier or a year ago.
production of products, increasing seasonally over the previContrary to the usual seasonaIde'"
tren, f
ous month, but showing a decline as compared with August, Cotton
Movements
ports of cotton th r 0 ugh the ports hO r
1934. Stocks of cake and meal, hulls, and linters at all
Houston and Galveston showed a furt ~6
United States mills were in smaller volume than on July 31,
and supplies of the latter were less than those held on Aug- material decline during the initial month of the 193~' e
season. This was especially true at the latter p~rt w :~6
ust 31, 1934.
August shipments totaled only 18,823 bales of whICh 4b th
bales were consigned to coastwise ports. Exports fro~ 0 •
STATISTICS ON COTTONSEED AND COTTONSEED PRODUCTS
shipping centers were also substantially below those m Adg
Texaa
United Statoa
ust, 1934. Receipts of cotton during the month reflectilie~
Augu.t I to Augu.t 31
Augu.t 1 to AugUBt 31
large seasonal increase over July, and at Galveston . ks
This .enaon Laat .enaon Thi••enaon Laat .eMon
Cottonaeed received at mill.
were
in substantially larger volume than a year ago. Stoller
(tona) .. ............. . .... . 68,197
178.391
203,442
274,207
Cottonaeed cru.bed (tona) .... . 43.141
of cotton at these ports on August 31 were much sma
99.932
145,115
198.193
Cottonaeed on hand AugUBt 31
than the holdings on the corresponding date a year ago,
(tona) . . .. . .... . ........ .. . 49,468
181.220
149,446
298,775
Crude oil produood (pounda) .. .
43,659.577 59.534,151
and
while a seasonal increase was evidenced at. Galvest~~h
Cako and meal produoed (tona)
65,380
89,980
Hull. produoed (tona) ..... . .. .
38,806
there was practically no change from the prevIous mo
54,154
Lintora producod (running
bnloa) .................... .
at Houston.
28,683
38,285
Cottonseed
Products
Stook. on bund Augu.t 31;
Crude oil (pound.) ....... . .. .
Cake and meal. . . ........... .
Hull. (tona) ...... . ....... . ..
Lintora (running balea) . ....•..
. .. '1'7ii,ass
72,007
53.424
94,595
42.327
70,352
Textile
Milling
A seasonal increase of 4.2 per cent was
reflected in the domestic consumption of
cotton during August, but a reduction of
2.5 per cent was evidenced as compared with the corre.
sponding month of 1934. Textile mills consumed 4'()8,4.10
bales of cotton during the month, as compared with 391,771
bales in July, and 418,94.1 bales in August, 1934.. Purchases
of raw cotton by textile mills were on a smaller scale than
Total foreign exports of American cotton during Augu~t
also reflected a contrary to seasonal decline from the,Pr eV!'
the
ous month, and continued in smaller volume than m t'e
like month of 1934.. There were 241,484 bales of domes 1s
cotton exported to foreign countries d uri n g August, at
against 276,622 bales in July, and 252,531 bales. in Augu~~
1934. Despite an appreciable increase in shIpments ts
France during the past month the small volume of exp.orgs
of American cotton continues to be due to reduced takln
-'
by most of the major importing countries.
COTTON MOVEMENTS THROUGH THE PORT OF GALVESTON
(Balea)
COTTON CONSUMED AND ON HAND
(Baloa)
Augu.t
Cotton-growing .tatea:
Cotton oonaumed .......... .
On hand Augu.t 3li nConauming eatablishmcnts.
Publie .toroge and Com-
1935
342,935
Augu.t
1934
333,977
prcsses ... .. .. ... .. . .. .
United Statoa;
Cotton conaumed .......... .
On hand Augu. t 31 inCon. uming eatabli.bmonts.
Pu blio .tornge lind oomprC88ea . ... . ..... . ... . .
408.410
418,941
Augu.t
Augu. t 1 to Augu.t 31
Tbis .Cnaon Lnat .enaon
342,935
~c:r~:::::::::::::::::
::::
Stooka, AllglI.t 31. ..... . . . . . .
1935
81,414
18.823
Augu.t
1934
47,738
63,140
Augu.t I to AllglI.t 31
Thi ••cnaoll Lnat .CUBOn
81114
18'823
287:744
47,738
63, 140
496,091 ......-:
333,977
477.626
805,847
5,762,817
5,550,437
408,410
418.941
644,926
1.076,982
5.892.836
5.823,939
COTTON MOVEMENTS THROUGH THE PORT OF HOUSTON
____________________~(=B~al~ea~)________________---.--Augu.t
Iteceipts .................... .
Exports ............. . ... . . . .
Stoeka, Augll.t 31. . . . . ...... .
1935
48,850
47,303
Augu.t
1934
64,431
83,217
Augu.t 1 to Augu.t 31
'rhi •• eMOIl Lnat .e,,"on
04.431
8 859
4,
83217
47.303
\'<88
311.922
82 ,u ~
7
MONTHLY BUSINESS REVIEW
than in either comparative month, and in the eastern and
coastal areas of the State there were declines as compared
with July. In New Mexico the daily output increased by
only a slight margin, but in north Louisiana there was a
sizable expansion over the previous month.
COTTON-GALVESTON STOCK STATEMENT
(Balce)
~or ~rcat Britain ....................... . .. . .. . .... ..
For ' r~neo . ........................... . ......... ... .
For ot er foroign porta ....................... .. ...... .
lor ooastwiso ports ................................ .. .
n oomprcsace and depota .... .. ... .. . ......... ...... ..
Total. . .. .. . .. .. ... .. .. .. .... .. . .. .... ..
August 31,
1935
200
900
2,900
500
282,744
August 31,
1934
2,000
1,900
26,600
1,000
464,591
287,244
496,061
OIL PRODUCTION-(Barrels)
North Tox88 ... ..... . . . ......
West Tex88 .. .. ..... . ........
East Texas .... ...... . .......
South Texas . . ...............
Texas Coastal. ...... . .. . .....
-- - - --- - - Total Texas . ... ..... 31,436,850 1,014,092 - 1,331,750
SEASON'S UECEIPTS, EXPORTS, AND STOCKS OF COTTON AT ALL
UNITED STA'fES PORTS-(Bnlce)
August 1 to August 31
This season Last season
t,~~: ·
422,969
324,502
. Umted Kingdom . . . .. ... .. . .. .. . .. .... . .. .. .
41,474
41,449
Franco.. . ..... ....................... ... ...
34.052
6,912
... '.' ....:.................. ............. ...
~J~~~~~~~~~ :~ ::::~ ~ ~ ~ ~ ~ :: :~ :~: : : : : : !H~
T tnl f .Alr other oountries.. . .. . .. .. .. .. . .. . .. .. .. ..
13,920
S1'ooks h'e~n porta . '" . . .. ....... . .... .. . .. . ...... ...
241,484
01 at all United Statce porta, August 31. . . . .. . . . 1,224,454
New Mexico ........... . .... .
North Louisiana ......... . ....
iUii
i~gl~:~::::.::::··::::·::·::.:::·:: :
---
54,176
25,409
---
-42,960
+ 183
+ 2,482
5,650
76,950
+
+
--- - - --1,093,677 - 1,249,150 -40,295
AUGUST DRILLING RESULTS
32,362
252,531
2,445,847
SPOT COTTON PUICES-(Middling Basis)
(Conts per pound)
New York
1,679,450
787,700
Total District . ....... 33,904,000
North Texas ........ . .. ....
Wcet Texas .............. ..
East Tex88 ...... .. . .... .. .
South Texas . ..............
Texas Coastal. .... ..... . ...
Total Texas . ... .. .
New Mexioo . ..... . ... ... ..
North Louisiana .. ..........
Sopt. 14,
1935
10 .65
10 .57
10. 18
10.55
10 .55
August, 1935
High
Low
12.00
10 .65
11 .95
10 .55
11 . 70
10.34
11.75
10 .50
10 .60
11.80
lnorenso or deorease over
August, 1935
July, 1935
Daily Avg.
Daily Avg.
Total
Total
3,440,850
110,995 - 257,500 - 8,307
5,455,200
175,974
180,000 - 5,807
15,004,800
484,026
832,150 -26,843
1,792,600
57,826 + 13,900
+ 449
5,743,400
185,271
76,000 - 2,452
August totals, clistriot . .. .. . .
July totals, dlstriot .........
While a substantial reduction from July
to August was evidenced in the amount of
~~'ude oil produced in this district, the rate of output connued moderately larger than a year ago. The total yield in
. Ugust Was 33,904,000 barrels, as against 35,153,150 barrels
In the previous month, and 33,108,000 barrels in the same
~Ohth last year. Field operations were reduced from the
g level reached in July. There were 1,057 wells com;oted and their combined initial production amounted to
, 1,169 barrels, whereas in the preceding month 1,306
new wells were reported with a total flush yield of 3,313,081
barrels,
d ~exas fields yielded an average of 1,014,092 barrels daily
thun ng August, which compares with 1,057,052 barrels in
r e previous month, and 995,950 barrels in August, 1934.
n north and west Texas the daily production was smaller
27
29
Gas
Wells
5
1
2
8
5
Failures
86
30
38
56
24
- 746- -2122
9
1
8
972
40
Initial
Produotion
74,215
27,640
1,691,329
47,837
19,567
-234- --1,860,588
4
12
36,928
3,653
294
8,813,081
- -777- -30- -250- --1,057
1,901,169
1,306
r
A
1
1,001
Pre>dueera
178
74
320
105
69
CRUDE OIL PRICES
Petroleum
t
Completions
269
105
360
169
98
Texas Coastal (34 gr. and above) ...... . ................
North Texas (40
and above) ............ . . .... . . ....
North Louisiana 40 gr. and above) .. ... .... . ...........
Sopt. 13,
1935
$1.12
1.03
1.08
Sopt. 14,
1934
51.12
1.03
1.08
(Oil statlstlce compIled by "The Oil Weekly," Houston, Texas)
The value of construction permits issued
during August at leading cities in the
Eleventh District reflected an expansion of 126.0 per cent
over the previous month and was the largest reported for
any month in more than four years. The total valuation was
$4,533,833 as compared with $2,005,697 in July, and $1,353,712 in August last year. While declines were registered
in the case of several cities, the increases over both comparative months were nevertheless widely distributed over
the district.
Building
BUILDING PERMITS
August, 1935
--
No.
'unotr~lo .. ... .. .
Aua
lleaumont: : : : : : :
CO lua Christl. ..
nalrl88 ..........
IlIP
Fort orth .. ....
Galv
lioua~~n .......
Por t Arthur: : :::
San I\ntonio . . . ..
ShrcvePOrt ......
\Vac
'W ... .. ....
\Vic~ii~ 'F~liB : : : :
--.
Voluation
August, 1934
No.
- - - - -29
33 $ 23,358
186
251,234
92
93,247
33,040
48
409
316,188
32
48,681
146
545,080
122
48,843
298
765,380
189,482
73
261 2,004,447
124
138,413
40,615
33
35,825
23
97
110
30
308
67
90
132
220
54
144
200
21
82
Valuation
$
16,842
194,514
74,749
38,735
195,677
35,001
101,430
27,433
328,350
10,023
09,091
139,540
31,500
90,812
----------
Totol. .... 1,880 $4,533,833 1,650 $1,358,712
Inorease over one thouaand per cent.
Percentage ohange
valuation
over year
+ 38 . 7
+ 29.2
+ 24.7
- 14 . 7
+ 01.6
+ 39 .1
+437.4
+ 78 .0
.
+1~3.1
-+
-
.8
28. 9
60 .6
--+234 .9
July, 1935
No.
Valuation
40 $ 32,738
188
252,230
132
41,192
74,405
57
410
345,454
39
22,188
124
221,400
39,593
92
253
597,315
33,220
84
152,222
383
108
78,328
76,691
33
38,715
26
-1,949
--$2,005,697
Peroentage ohange
valuation
over month
-
28.7
-+126 .4.4
- 55 .6
-+1198.5.4
+140 .2
+ 23 .4
+ 28. 1
+470.4
.
+ 76 .7
- 47 .0
7.5
--+126.0
--
January 1 througb August 31
1935
1934
Valuation
No.
No.
Valuation
232 $ 184,533
1,236
3,907,803
901
380,036
433
357,090
3,193
2,358,815
350
899,062
925
2,147,830
857
476,342
2,048
4,345,746
440,134
590
5,241
3,357,150
1,053
850,049
227
849,308
222
256,792
227
608
710
196
3,045
327
635
943
1,501
368
1,066
1,259
147
530
17,508 $20,322,490 11,562
$
205,771
025,583
234,611
221,455
1,607,283
177,840
555,578
366,802
3,197,205
98,080
514,168
657,184
226,663
197,61 8
$ 8,885,847
Percentage ohange
valuation
over poriod
- 10 .3
+524. 7
+ 04.5
+ 01.2
+ 46 .8
+405.5
+286.6
+ 29.9
+ 35 .9
+354.9
+552 .9
+ 29 .3
+ 54 .1
+ 29.9
--+128 .7
----------------~~~~==~~~~---------------
8~__________________~M==ON~~TH=L~Y~B~U~S=IN~E=S=S~R=E=VI~E~W~______________________
SUMMARY OF NATIONAL BUSINESS CONDITIONS
(Compiled by the Board of Governors ot the Federal Reserve System, September 24, 1985)
Total volume of industrial production increased in
August by about the usual seasonal amount. Steel output
increased more than seasonally, while the output of automobiles and anthracite declined sharply. Factory employment and payrolls increased. Wholesale prices of farm
products and metals advanced during August and the first
two weeks of September, and prices of wheat and metals
increased further in the third week of the month.
PRODUCTION AND EMPLOYMENT
Industrial production increased seasonally in August and
the Board's index, which is adjusted to allow for usual
seasonal variations, remained unchanged at 86 per cent of
the 1923-1925 average. Activity at steel mills showed a
considerable increase from July to August and in the first
three weeks of September was at a level higher than in any
other month since February. Automobile assemblies declined by about 30 per cent in August and showed a further
sharp reduction in the early part of September, reflecting
in part preparations for early introduction of new models.
At lumber mills output continued to increase in August.
Cotton consumption by domestic mills increased slightly
from recent relatively low levels and activity at woolen
mills was maintained at a high rate. At mines, output of
anthracite decreased sharply in August, while output of
bituminous coal showed an increase. Factory employment
and payrolls increased between the middle of July and the
middle of August by more than the usual seasonal amount.
Marked increases in employment were reported for the steel,
machinery, lumber, silk, and clothing industries, while at
automobile factories employment declined somewhat. The
number of wage earners engaged in the production of
durable manufactures in August was 6 per cent larger than
a year earlier, while the volume of employment in other
manufacturing industries as a group showed little change.
Total factory employment was 3 per cent larger than in
August, 1934. Daily average value of construction contracts,
as reported by the F. W. Dodge Corpollation, showed little
change in August and the first half of September. Contracts for residential building, which earlier in the year had
increased considerably, showed a decrease for this period,
while ~e volume ?f public projects increased. Department
of Agnculture estImates based on September 1 conditions
indicate a cotton crop of 11,489,000 bales, as compared
with the unusually small crop of 9,636,000 bales last year.
The indicated crops of corn, wheat, and other grains a;.e
considerably larger than last year, when drought con I'
tions prevailed, and the condition of pastures is above the
ten-year average.
DISTRIBUTION
Freight-car loadings increased considerably in Augus~
and the first half of September, partly as a conseque~ce
seasonal factors. Department store sales increased slIght Y
less than seasonally from July to August.
f
COMMODITY PRLCES
The general level of wholesale commodity prices,. as
. t Ith
CS '
measured by the index of the Bureau of Labor Stalls
advanced from 79.6 per cent of the 1926 average at
beginning of August to 80.8 per cent in the sec?~d ,,:eek
September and prices of many leading commodItIes, mclu
ing wheat, silk, copper, lead, and zinc advanced further
in the third week of the month. Cotton prices declined CO?'
siderably in August and showed relatively little change In
the first three weeks of September.
f
d'
BANK CREDIT
Excess reserves of member banks declined in the five'
week period ended September 18, reflecting a tempor~r~
increase in the Treasury's total holdings of cash and e
posits at Federal reserve banks and a seasonal incre~sfl o~f
money in circulation, which was partly offset by an m ~~.
of gold from abroad. Total loans and investments of rep~
ing banks in leading cities increased by $610,000,000 dd~~
the five weeks ended September 18. Loans increase. t
$100,000,000, holdings of United States Government du'ec
obligations by $390,000,000, holdings of United States g~r;
an teed securities by $70,000,000, and holdings of .0 ef
securities by $50,000,000. Adjusted demand depOSits 0 t
these banks, that is, demand deposits other than Governrnend
and bank deposits, adjusted for collection items, inc~eaS~y
by $14'(),000,000, United States Government depOSits00
0
$160,000,000, and balances due to banks by $270,000, r:
Yields on Government securities rose somewhat further du y
ing this period, while other short-term open-market mo ne
rates remained at previous low levels.
@FedFRASER