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Monthly Busine s Review
OF THE
FEDERAL RESERVE BANK
OF DALLAS
(Compiled September 15, 1937)
~~==============================================================================================
Volume 22, No.8
Dallas, Texas, October 1, 1937
This copy is released for pub. Sept 30
lication in morning papers' .
~===============================================================================================
DISTRICT SUMMARY
------------------------------------------------ The output of petroleum, which had increased somewhat
THE SITUATION AT A GLANCE
Elovonlh Fodoral Roservo Distriol
g:~~r~ebit~ ~o individual acoounts (18 oities) . .. .
August .
1937
$843,250,000
Wtiol~eol s~ro sales ....... .... . . . ......... .
Valuo o( 0 ra 0 ~Ies (five lines) ......... ..... .
Valuatior:'~n~~kt0n contr.aots aw~r?od ........ . s· :ii,53'I,cca
Co mm . I . J og permIts (14 Oltles) ....... .. S 4,323,618
14
Comm:~~l:1 f:N~res (~u""l?O!) ................. .
74,000
Daily
res (hablhhes) ............... . $
avernKc orude oil produotion (barrols) . ... .
1,726,186
Percontage ohange (rom
Aug., 1936
+ 19.0
+ ILl
+
9.4
+130.6
- 7.2
- 30.0
- 72 .6
+ 30.1
July, 1937
- 7.1
+16.0
+18.2
+98 .1
+16.6
-12.6
- 14 .9
+ 6.3
-----------------------------------------------. Business and industrial activity in the Eleventh District
lncrea~ed substantially during August. Department store
sales III principal cities registered an increase of 16 pe~
cent OVer July, which is more than seasonal, and the gain
OVer a year ago widened to 11 per cent, the largest incre·
nt shown by a year·to·year comparison since May.
1 olesale distribution, after holding up well during the
ate spring and early summer months, increased less than
Usual from July to August, but maintained a margin of 9 per
~hnt ~ver a year ago. Bank debits, while 7 per cent smaller
19~n 111 the previous month, exceeded the total in August,
6, by 19 per cent. The number of commercial failures
an~ the amount of liabilities involved, as compiled by Dun
jnl Bradstreet, Incorporated, were lower than in either
u y this year or August last year.
Wh
. The largest monthly volume of new construction work
A:more than six years was started in this district during
d ug?st. According to the F. W. Dodge Corporation, resi·
entI.al bUilding increased, but the expansion was chiefly in
Pfbhc. works and public utility construction. The valuation
o bUIlding permits issued at principal cities, although
seasonably larger than in July, was smaller than in the
corresponding month of 1936.
in July, rose to a new high level in August, but declined
in the first half of September when allowables in Texas
were reduced. Nevertheless, the daily production rate at
mid-September was higher than in any month prior to
August.
Despite the effects of the hot, dry weather prevailing in
the forepart of the month, weather conditions in August
were generally favorable for crops in this district. Depart.
ment of Agriculture estimates as of September 1 reflected
upward revisions in the prospective production of several
crops. The major increase was in the indicated production
of cotton, which, on the basis of the September 1 estimate,
is the largest crop since 1931. CoLton prices declined further
between August 16 and September 16, reaching the lowest
level since 1933. Ranges deteriorated in August, but the
outlook for fall pasturage was improved by the heavy rains
which have fallen in most sections since the middle of
August. Livestock generally are in good flesh except in the
dry areas.
Daily average gross del?osits of member banks in this
district rose $8,64.6,000 during August, principally at coun·
try banks. The loans of weekly reporting member banks
increased further by $6,820,000 in the four weeks ended
September 8, but their investments were reduced by $1,140,.
000. Federal Reserve Bank loans to member banks, which
averaged about $1,450,000 from the middle of August
through the first week in September, declined to less than
one-third of that amount on September 15. Member hank
reserve balances declined in the third week of August, but
by September 15 they had risen to $182,493,000, which is
$2,833,000 higher than a month earlier. Effective August
31, 1937, the discount rate of the Federal Reserve Bank of
Dallas was reduced from 2 per cent to 1 % per cent.
BUSINESS
Wholesale
Trade
Although smaller than seasonal increases
occurred in most lines of wholesale trade
:m "
from July to August, distribution of com·
OdItIes remained relatively heavy, the combined sales of
reporting firms showing an increase of 18.2 per cent over
the previous month and a gain of 9.4 'per cent over' the same
month last year. Collections on outstanding accounts de·
clined moderately in a majority of reporting lines.
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
MONTHLY BUSINESS REVIEW
2
~----------------~---------------------------------The sales of groceries and hardware in August were
maintained at about the July level, but gains of 7.6 per cent
and 8.9 per cent, respectively, were registered in comparison
with a year ago. Coincident with the demand for fall merchandise, the business of wholesale dry goods firms increased 53.8 per cent in August, but the expansion was
somewhat less than the average, due in part to the heavy
shipments in July. Sales were only 2.2 per cent larger than
in August last year. Buying of farm implements continued
in large volume, being 37.4 per cent greater than in July
and 41.8 per cent in excess of that in August, 1936. Distribution of drugs increased further by 9.5 per cent from
July to August and showed a gain of 8.4 per cent over
August last year.
CONDITION OF WHOLESALE TRADE DURING AUGUST, 1937
Percentage of increase or decrease inNet Sales
Not Sales
Stocks
Aug., 1937
Jan. 1 to Aug. 31
Aug. 31, 1937
compared with
oompared with
compared with
samo period
Aug.31, July 31,
Aug., July,
1936
1937
last year
1936
1937
+ 7.6 +.9
+15.1
+ 2.1 + 6.4
+ 2.2 +53.8
+ 4.1
+17 .8 - 7.8
+41.8 +37.4
+36.6
+22.3 + 2.7
+ 8.9 + 2.6
+17.0
+18.4 - 2.3
+8.4 +9.5
+5.9
+12.2 +3.5
Ratio Aug.
oolleotions
to aooounts
outstanding
July 31,
Groceries .........
80.1
Drygoods ........
34 .7
Farm implements ..
7.7
Hardware ........
46.3
Drugs' ...........
89 .4
"Drug data compiled by the United States Department of Commeroe. Colltolion ratio
represent. median percentago.
Merchandise distribution at departmet
stores in eleven principal cities of tIe
Eleventh District was in heavy volume
during August. The dollar value of sales showed an e~· h 1S
pansion of 16.0 per cent from July to August, wh1C
somewhat larger than the average for this season, and
ceeded the August, 1936, volume by 1l.1 per cent. In 1vidual depa~tments l'egister~ng sizable increase~ in sales1a~
compared WIth a year ago Included the follOWIng: Woo e
dress goods; Millinery; Women's and misses' suits? dressed
and shoes' Juniors' and girls' wear; Men's clothIng; an
boys' wea;. According to late reports buying of fall mel:chandise continued brisk in the first two weeks of Septembel.
Retail
Trade
e;-
Inventories of reporting department stores were increas2e~
15 per cent during the month and on August 31 were 1 .
per cent larger than a year ago. The rate of stock t~rnover
during the first eight months of 1937 was 2.12 tImes as
contrasted with 2.22 times in the same period last year.
The usual decline from July to August occurred in collections on outstanding accounts. The ratio of August c;~
lections to open accounts outstanding on August 1 was 3 '9
per cent, as compared with 4.0.4 per cent in July, and 36. t
per cent in August last year. Collections on install men
accounts were 13.6 per cent of those outstanding on the first
of the month.
BUSINESS OF DEPARTMENT STORES
Total sales (percentage):
August, 1937, compared with August, 1936 .... . ........................................ .
August, 1937, compared with July, 1937 ......... . .............. "" . ....... . .. . ........ .
January 1 to August 31, 1937, oomparod with same period last year ... . ...•...... •. ......••
Credit sales (percentage):
August, 1937. compared with August, 1986 ............................................. .
August, 1937, oompared with July, 1937 . ............................. . .................. .
January 1 to August 31, 1937, oompared with same period lasL year ......... " . ..... '" ... .
Stooks on hand at end of month (percentage):
August, 1937, compared with August, 1936 ............................................ ..
August, 1937, compared with July, 1937 ................................................ .
Stook turnover (rate):
Rate of stock turaovor in August, 1936 . ....... .. ............•................. .. ......• .
Rato of stook Lurnover in August, 1937 ... . ... ....... ...... .... .................... .... . .
Rate of stock turnover January 1 to August 31, 1936 ......... . .......................... .
Rato of stook turnover January 1 to August 31, 1937 .......... . ............. ............ .
Ratio of August collections to open accounts recoivable and outstanding August 1, 1987 . ... .. . ... .
Ratio of August colleotions to installment aeoounts reeeivablo and outstandinll August I, 1937 . ... .
Indexes of dopartment storo sales:
Unadjusted-July, 1937 . ............................ .. ... .. .. . ..... . •.. .•....... ......
Unadjusted-August, 1937 .... ...... ................................................. .
Dallas
+ 9.2
+26.5
+ 8.8
Fort Worth
+ 5.6
.7
+ 7.9
Houston
+21.0
+20.5
+14 .9
San Antonio
+12.8
+17 .2
+10.1
Others
+ 8.3
+ 4.8
+12.0
Total Distrio t
+11.1
:):16.0
10.4
+14 .1
+32.8
+12.1
+ .4
+ 3 .1
+9.4
+20.4
+26.4
+19.7
+16.9
+17.3
+12.0
+ 9.8
+14.1
+11.9
+13.4
+22.9
+13.0
+10 .0
+19.5
- 2.9
+ 6.0
+11 .6
+19.3
+18.8
+13.2
+21.4
+12.7
+ 12.4
+15 .0
.29
.29
2.42
2.32
37.8
15.5
-
.23
.24
2.01
2.14
34 .0
9.9
.26
.27
2.27
2.16
37 .5
.30
.28
2.44
2.26
39.7
12 .0
.21
.19
1.85
1. 72
36.9
15 .0
.26
.26
2.22
2.12
37.3
13.6
!~i~:~~=i~:~s~~31~a7·. ::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
75 .1
92.1
112.1
127.9
84.3
83.3
112.4
117.3
76 .2
89.7
108 .9
130.0
70.4
82.2
103 .5
115.8
73.5
84.9
105 .0
117.9
!~i:~:l=i~:~;t~31~37·.::::::::::::: : ::::::::::::: :::::::::::::::::::::::::::::::::::
56.4
68.7
60.6
66.1
62.2
66.1
67.6
64.8
36 .8
42.9
41.3
42.1
53.9
57.4
62.0
58.0
59.1
a7.8
64.9
66.5
Indexes of department stor~ stooks:
Unadjusted-July, 1937 ... . .......... ...... ...•.. .... ..... .... ........ . ... .•.. . .. ...• .
Unadjusted-August, 1937 ............... .......... . .... . ............ ... ....... .... . . .
-
AGRICUL TURE
According to the estimates of the United
States Department of Agriculture, prospective production of most crops in the
Eleventh Federal Reserve District on September 1 either
remained unchanged from that a month earlier or showed
an improvement. Estimated' production of corn, grain sorghums, pecans, sweet potatoes, and white potatoes in Texas
was the same as on August 1, but was increased elsewhere
in the district. Substantial increases were shown in the indicated production of all deciduous fruits and the September
Crop Conditions
1 estimates were considerably larger than production. in
1936. The initial estimate on peanuts was for a product!ln
of 107,100,000 pounds in Texas, which is approximate
8,000,000 pounds above last year's harvest and 20,000,00
pounds larger than the 1928-32 average production. Moderate increases in production were also reported for Okla'
homa and Louisiana. Acreage planted to this crop 'Was
considerably smaller than in 1936 in Texas and Oklaho~8.
Prospects for tame and wild hay production declined, prJ1l'
cipally in Texas. Estimated production of rice in Texas 'W!iS
b
MONTHLY BUSINESS ·REVIEW
reduced from 12,444 ,000 bushels on August I to 12,200,000
bushels on September I, and weather conditions have be~n
~nfavorable for harvesting. The condition of citrus fr~lts
In Texas declined on account of the hot, dry weather whICh
prevailed during most of August.
The principal improvement during August occurred in
the Texas cotton crop. Estimated production of 4,622,000
bales for the State on September 1 is 308,000 bales higher
than that on August I, and 1,689,000 bales, or 58 per cent,
above last year's production. The estimated per acre yield
of 175 pounds compares with 121 pounds in 1936 and an
average of 139 pounds during the ten years 1923-1932.
Considerable premature opening and deterioration over a
~arge area in the State resulted from the dry, hot weather
In the first half of August, but rains after the middle of the
month brought about a noticeable improvement, particularly in North Texas. Indicated production in Arizona, New
MeXico, and Louisiana increased moderately between August
~ and September ,I , 'but declined in Oklahoma. In some sech~ns of the district insect activity has increased since the
raIns. Ginnings prior to September I in Arizona, Oklahoma,
and Louisiana were lower than 'in the same period of 1936,
but ginnings in Texas, which amounted to 1,078,604 bales,
'~ere the largest for any similar period since 1930. ProduclIon of cotton in the United States was estimated at 16,098,000
bales on September I, an increase of 505,000 bales during
~ugust, and 3,699,000 bales larger than last year's produclIon. The estimated per acre yield of 228.5 pounds is the
largest on record.
CROP PRODUCTION
(In thousands of uni"')
Texll8
ForoollSt
1037
4,622
76,551
41,090
Crop
1086
Unit
Cotton .................. Balos
2,983
Corn
68,025
Bushels
~~tC;'whc~t : ::::: ::: : : Bushels
18,927
On~ng whent, . . . .... .... Bushels
22,552
28,680
BarIc·· · ···· · · · · ··· .... , Bushels
2,062
1,246
Grai:~o'r h~" ........... Bushels
31,711
BUBhels
52,768
nice.. g rna ....... ...
12,200
10,200
Tam Ii .......... · ...... Bushels
948
815
Wildoh ay ............... TOllS
315
216
l'enn ~y i ............... Taos
99,120
107,100
Appl;;'" (or nUls). , . . . . . . Pounds
Bushels
165
98
1,302
1,156
Bushels
Bushols
410
300
2.3
Bushels
3.1
10,400
24,000
Pounds
2,860
l'ot:tOCB iWhitel' .. .. . " . Bushels
3,445
OCS sweet......... Bushels
3,000
3,640
!~l ~ve states includi~ Eleventh Distriot.
) Tk1ahoma, TexlIS, ew Mexico, and Arizona,
o exll.~ only.
d) LoUisiana, Oklahoma, and TexllS.
BOURCE: United States Department of Agriculture.
:
~~>O:
-
Eleventh Distriot
ForoollSt
1037
5,592
91,003
42,811
98
31,647
4,752 a
73,455 b
12,200 a
1,342
000 a
125,360 d
1,805 a
2,873 a
701 a
8.9a
30,600 d
4,253
13,110 d
1936
3,587
80,623
19,348
03
24,077
2,878 a
41,324 b
10,200 0
1,104
004 a
110,790 d
1,017 a
1,647 a
588 a
5.8a
16,500 d
3,620
11,002 d
In the five states attached to the Eleventh
District, cash income from the sale of
principal farm products increased 50.5
per cent from June to July, and was 44.4 per cent larger
than in the same month last year. The sharp increase in
receipts from farm crops over both comparative months
resulted principally from the movement of the large wheat
c;op at favorable prices. July income from livestock and
~IVestock products, although 7.4 per cent smaller than in
une, exceeded that in July last year by 16.9 per cent.
Ghovernnrent payments to farmers declined further in July,
t e. total of $982,000 being the smallest for any month
dunng the current year. For the seven months of 1937,
Cash Farm
Income
3
these payments aggregated $59,4,04,,000, an increase of 89.6
per cent over those in the corresponding period of 1936.
RECEIPTS FROM THE SALE OF PRINCIPAL FARM PRODUCTS
(In thousands of dollars)
Receipts from:
Liveslock and IivoFarm
Total
stock produots
orops
receipts
July
1937
$ 1,256
1,575
1,507
6,378
15,061
July
1030
$ 1,157
1,288
1,597
6,040
11,970
July
1937
S 2,387
2,000
2,1 23
28,773
34,427
Tolal five stales .. . . $44,020 $26,689
$25,777'
SOURCE: United States Department of Agrioulturo.
$22,058
$70,400
July
1037
$ 1,131
t~~~iBnn·(;. ":::::::::::::: 1,121
New Mexico ..... . ... . . . .
616
Oklahoma .... . ....... . .. 22,395
'roxns . . ...... ..... .... .. 19,366
Stnte
July
1930
$ 1,103
725
563
0,881
14,417
July
1030
$ 2,260
2,013
2,160
15,927
26,387
-$48,747
Following the sharp decline in the latter
part of July and the first half of August,
range conditions in the Eleventh District were improved
in most sections by rains in the last half of August and the
first week in September. Prospects are now generally favorable for fall pasturage and late feed crops. However, there
are some areas in south Texas, the northwest Texas Panhandle, and eastern New Mexico which are still dry with
range feed short.
Livestoclc
Livestock, although showing a decline in condition during August, continued in good flesh except in the dry sections, with a good supply of grass-fat cattle available for
marketing. The Department of Agriculture reported that
contracting of cattle in Texas for fall delivery has been
relatively heavy. Contracting of lambs has also been active
at higher prices and commercial reports indicate that the
out-of-state shipments will be in large volume this fall.
Movements
and Prices
Receipts of cattle, calves, and sheep at
the Fort Worth market were unusually
heavy during August, being substantially
larger than in either July this year or August last year.
Supplies of hogs were 46 per cent larger than in the previous month and 25 per cent greater than in August, 1936,
but receipts were in about the average volume for this
season.
After the middle of August hog prices declined sharply
and at the low point the best offerings sold at about $2.00
per hundredweight under the August top price. By midSeptember, however, one half of the loss had been regained.
Price declines occurred in practically all divisions of the
FORT WORTH LIVESTOCK RECEIPTS
(Number)
August
August Chango over
year
1937
1036
90,783
48,267
+42,516
Cattle ....... ,', ........ ,
32,300
52,925
+20,535
Calv"" ..... " ... , . .. ... .
18,005
22,533
+ 4,528
Hogs ...... . ........ .. ,' .
00,134
72,800
+17,274
Sheep ................ . ..
July
1037
86,121
38,380
15,481
71 ,871
COMPARATIVE TOP LIVESTOCK PRICES
(Dollars per hundredweight)
August
August
1037
1036
$ 8.00
Beef steers ..... ,. , ............ , .. , .. .... , .. , .•.. , $12.50
8.25
6.50
Stocker steers ............ .. ..... . ......... ..... . .
12.50
8.10
Heifers and yenrlings . . .... , , .... , ....... , .. , .... .
7.25
5.00
Butohor oows .. ...... .......... ........ ... ...... .
8.35
6.10
Calves .. .... ..... . ............................. .
12 .00
11.20
0.25
8.75
~~lis::::::::::::::::::::::::::::::::::::::::::
Changeover
month
+ 4,002
+14,536
+ 7,052
+18,208
July
1937
$12.50
8.00
12 .00
7.05
8.75
12.55
0.50
MONTHLY BUSINESS REVIEW
4
cattle market during the last half of August, but in the
subsequent two weeks, receipts declined, trading was more
active, and prices advanced. The supply of choice slaughter
stock continued generally light and cleared at good prices.
The sheep market held generally firm with some classes
selling at higher prices:
FINANCE
During the past six weeks discount rates
were reduced from 2 per cent to 1lf.! per
cent at all Federal Reserve banks except
the Federal Reserve Banks of Cleveland
and New York, and from 1% to 1 per cent at the Federal
Reserve Bank of New York. A discount rate of 1% per
cent has been in effect at the Federal Reserve Bank of
Cleveland since May, 1935. These reductions were made
to assist in carrying out the System's policy of monetary
ease and to make Federal Reserve bank credit readily
available to member banks for the accommodation of com·
merce, business, and agriculture.
Changes in
Discount
Rates
In furtherance of this policy, the Federal Open Market
Committee announced on September 13 that it had auth·
orized its Executive Committee to purchase in the open
market from time to time sufficient amounts of short term
United States Government obligations to provide funds to
meet seasonal requirements. The Committee also recom·
mended that the Board of Governors of the Federal Reserve
System request the Secretary of the Treasury to release
approximately $300,000,000 of gold from the Treasury's
inactive account.
In a statement released to the press the Federal Open
Market Committee said in part:
"This action is in conformity with the usual policy of
the System to facilitate the financing of orderly mar·
keting of crops and of autumn trade. Together with
the recent reductions of discount rates at the several
Federal Reserve banks, it will enable the banks to
meet readily any increased seasonal demands for
credit and currency and contribute to the continuation
of easy credit conditions."
Operations of
the Federal Re·
serve Bank
Member bank borrowing from the Fed·
eral Reserve Bank of Dallas increased
considerably after mid·year and aver·
aged about ,$1,450,000 during the last
half of August and the first week of September, but de·
clined in the following week. On September 15 total dis·
counts for member banks amounted to $453,000, which
compares with $1,329,000 on August 15, and $523,000
a year ago. During June, July, and August average reserve
balances of member banks remained relatively steady but
average required reserves increased, resulting in a gradual
decline in excess reservC!'. Thus, in the last half of August
reserve balances averaged about 25 per cent in excess of
requirements in contrast with an excess of 33 per cent in
the first half of June. After the first of September, reserve
balances increased and averaged about $4~000,000 above
those in August. In response to the seasonal demand for
currency incident to the harvesting and movement of crops,
Federal Reserve note circulation increased from $91,841,000
on August 15 to $92,571,000 on September 15.
CONDITION OF 'rRE FEDERAL RESERVE BANK
(In thous.nds oC doUars)
Toial cash reserves . ............................. .
Discounts Cor member banks ........... . .... .. .. . ..
Industrial advnnces .. ..... . ......•.•....•.........
Bill. bought ia tho open market ..... ...... ....... ..
United States Governmont soourities ....... ... . ... . .
All otbor investments . . ....... ... ...... . ..... . . . . .
Total oarning assots ....... ....... .... .......... ..
Member bank resorve dop08its .... ...... ........ .. .
Federal Resorvo notes in aotual oiroulation ......... .
Commitments to make industrial advaaces . .. •. .. .. .
Sapt. 15,
1037
$202,403
453
1,166
87
O~~n~
100,340
182,493
02,571
302
Sopt. 15,
1036
$169,222
523
1,542
87
03,570
8
95,730
146,131
88,641
508
Aug. 16,
1987
$199,622
1,329
1,1~~
O~~;!
101,2.6
179,660
91,8. 1
302
The loans of reporting member ba~ks .in
leading cities of the Eleventh DistrIct
increased $6,820,000 between August ~1
and September 8, and the total of $23 ,.
543,000 on the latter date was $2~,848,·
000 larger than on September 9, 1936. Most of the exp~n'
sion in the four weeks occurred in commercial, industrIal,
and agricultural loans, but all other classes of loans excepi
loans to banks also increased. While the investments 0
these banks in United States securities remained v~rtual~
unchanged between August 11 and September 8, thell' hoI
ings of other securities declined by $1,122,000. On Septet
ber 8 their investments were $6,873,000 larger than on tIe
corr~spondi~g date las~ year, reflecting increases of. ~5,720~
000 m holdmgs of Umted States Government seCUrIties an
$1,153,000 in holdings of other securities.
Condition of
Member Banks
in Leading
Cities
Adjusted demand deposits declined $8,428,000 froItl
August 11 to September 8, but other deposits increased by
$21,606,000, three·fourths of which was in interbank deposits. In the same period these banks increased their reserve balances with the Federal Reserve Bank by $7,331,0?O,
bringing the total to $115,587,000 on September 8, wlnch
was $19,74,2,000 higher than a year ago.
CONDITION STATISTICS OF MEMBER BANKS IN LEADING CITIES
(In thousands oC dollars)
Tot81108ns and investmonts ....• ••.• . . •...•.
Totall03ns ....... . ....................... .
Commercial, industrial, and agrioulturalloans.
Opon market papor . . .................... .
toans to lirokers and donlor. in securities .. . .
Otber !~ans Cor purchasing or carrying
Sapt.8,
1037
$508,234
285,543
148,DS4
3,433
2,D75
Sapt. D,
ID86
$477,513
211.695
·•
3,D27
Aug. 11,
1937
$502,554
228,723
143,456
3,422
2,85 8
15,234
8ocnntUl'!S ... •.. . . ... ...... ..... . . •... • •
15,388
21,316
Real estate loans .... ... ....... .......... .
21,333
23,056
881
Lonn. to banks .... .. .. .. .. . . ... .. ....... .
557
557
41,556
All otber loan...... . ......... . .. . . . . .. .. .
42,873
193,629
United States Government diroot obligations ..
ID3,I18
181,503
20,936
Obligations Cully guaranteed by U. S. Gov·t ..
30,428
36,323
50,267
Otber seourities . ........... .. ............ ..
49,145
47,DD2
108,256
Resorves with tbo Federal Reservo Bank . .... .
115,587
. 05,845
142,765
Balances witb domestio banks ....... . ..... .. .
148,202
177,286
390,187
Demand deposits-adjustedt ... ...... . .. ... .
381,75D
362.573
121,578
T,mo d~oslt~ .. ... ........................ .
125,404 120,359
18,076
United States Govornment deposits .... .... . . .
ID,634
37,040
176,727
Interbank deposits ........................ .
ID2,048
186,426
' NonC
Borrowings Crom
Federnl Reserve Bank . .. .
400
Nono
'Comparable figures not available.
tIncludes domand deposits otbe'r than int~rbank and United Staten Governmont, less oJIb
itema reported as on hand or in the process of oollootion.
·
ti,.
MONTHLY BUSINESS REVIEW
Deposits of
Gross deposits of member banks in the
Member Banks
Eleventh District averaged $8,64.6,000
.
higher in August than in July, comprisIng increases of $6,835,000 in gross demand deposits and
Sl,811,000 in time deposits. The average of gross deposits
arnounted to $1,264,284,,000 in August, w4ich is $76,139,
O00 above the average in the same month of 1936.
d' T~e call reports of condition of member. banks in this
Istnct as of June 30, 1937, show that adjusted demand
deposits' totaled $788,639,000 on that date, an increase of
S11,180,000 over the total on March 31 this year. The expansion in the second quarter occurred at country banks,
whereas the increase in the first quarter of the year was at
reserve city banks. There has been a steady growth in these
deposits since the middle of 1933, and the total on June 30
Was more than double that four years earlier.
GROSS DEMAND AND TIME DEPOSITS OF MEMBER BANKS
(A vornge of daily figurco- in Ihousanda of dollara)
Combinod Total
Rcoorvo Cily Banks
Country Banks
Groea
demand
Timo
Montb and Yo",
deposits deposit.
1086 - ~gu.t .. ... . . . .. $ 988.321 $199.824
o ptember ....... 1,017,186 199.602
Netob..r. . . . . . . .. 1.061,297 200,763
Dovembor ....... 1,097,227
200,783
ocomber .. . .. .. 1,108,410 200,898
1037 - ~nnuary .. . . . . . .. 1,094,826 199,824
~fbruary . . . . . . .. 1,079,R58
199,798
199,134
A .~eb .......... 1,051,972
1,043,7M
109,683
J ay...... ...... 1,035,133
200,293
June ............ 1,037,335 201,800
J.,ll y . .. .. .. .. .. . 1,053,745 201,893
ugusl . . . . .. . .. . 1,060,580 203,704
M':nl. .... .. .. ...
Gross
Time
domand
deposits doposits
$570,488 $109,534
585,513 . 10~ ,364
608,277
109,023
627,1 ~ 7
110,105
632,243
110,280
621,186
109,726
007,432
109,305
108,501
587,5P6
578,110 108,562
569,613
109,344
573,110 110,625
584,117
110,620
586,477
111,312
Gross
domand
deposi ts
$417,833
431,673
453,020
470,040
470,167
m,6~0
472.426
464,376
465,046
465,520
464,225
4no,628
474,103
Time
depo.its
$90,290
90.238
91,1(0
90,078
90,018
Po.o08
90,443
90,634
91 .121
90,949
91,17[,
91,264
92,392
ADJUSTED DEMAND AND TIME DEPOSITS OF MEMBER BANKS ON
SELECTED "CALL" DATES
(In tbousanda of dollars)
Combinod Tot.1
Reserve City B.nks
Country B. nkst
Demand
Dem.nd
Demand
doposits
Time
deposits
Time
deposits
Timo
Call datos
adjustod· deposits adjustod· deposits .djuslod· deposits
I~~~-~une 30 ........... $379,662 $189,863 $176,729 $114,301 $202,933 $ 76,562
19as:=/no 30 .. ...... " . 495,520
197,280 232,911
111,854 262,009
85,426
1931l-/'UO 29 . . .. . . . . . . . 583,644
195,210 276,556 113,421
307,088
81,789
Dune 30. . . .. . . . .. . 697,486 200,661
327,353
110,066 370,133
89,695
1037 Mce . 31. . .. . . ... .. 761,530 200,780 344,572 110,506 416,958
90,274
- J . r. 31........... 777,459
200,060 364,258
108,885 413,201
91,175
uno 30 . ....... .. . 788,639
203,741
363,374
111,911
425,265
91,830
pro':;;cmand deposits othor tban interb.nk and Unites States Government, less cash item. in
In p af collection and, prior to December 31, 1935, less cash items roported on hand but nol
rccess of collcotion.
are i tCftdlyin g b.nks in reserve citico which h.ve beon authorized to corry counlry bank resorves
~ u cd wi~b country banks.
5
$1,700,561 as compared with $475,214 a month earlier.
The increase was principally in acceptances based on the
domestic shipment and storage of goods.
After increasing in June and July, debits
to individual accounts at banks in eighteen cities in this district declined 7.1
per cent in August, which was greater
than the average for that month. The increase of 19.0 per
cent over August, 1936, was about the same as the average
gain for the eight months of 1937.
Debits to
Individual
Accounts
DEBITS TO INDIVIDUAL ACCOUNTS
(In tbous.nds of dollars)
Abilene .......... . . . ....
Au,tin . ................ .
Bcaumonl .. . . .. . ... .. , ..
Corsioana . ........ . .... .
D.lIns .. .... . ..... . .....
EI PBSO .. ...............
ForI Worth ..............
Galveston ...............
Hou.ton .............. ...
Port Arthur .... .... .....
Roswoll . ................
San Antenio .. ........ ...
Shrevcporl . .. ... . .......
Toxarkana- , .. ... . .. . ... .
Tnc.on ........ ........ ..
Tyler .. .................
Waco .... . ........... ...
Wichitn Fall, . ...........
August
1937
S 8,421
28,585
27,088
3,456
230,077
23,983
85,097
28,040
224,406
9,256
3,089
67,055
44,788
7,600
10,002
13,345
14,037
14,870
August
1936
$ 6,969
22,701
20,099
2,847
201,240
21,789
71,364
22,460
175,492
7,701
2,548
59,914
40,143
6,193
8,361
14,OPO
12,257
12,627
---
Percent.go
chango ovor
yoar
+20.8
+25.9
+34.7
+21.4
14 . 3
10.1
+19.2
+24.8
+27.9
+20.2
+21.2
+ 11 .9
+11.6
+22. 7
+20.3
- 5.3
+14.5
+17 .8
:1:
July
1937
$ 8,6U'
27,724
25,984
3,241
242,058
26,110
112,250
30,053
235,347
9,838
3,638
6B,958
48,136
8,414
10,904
15,686
13,669
17,431
Porcentage
oh.nge over
montb
- 2.6
+ 3.1
+ 4.2
+ 6.6
- 4.9
- 8.1
-24 .2
- 6.7
- 4.6
- 5.9
-15.1
- 2.8
- 7.0
- 9.7
- 7.7
-14.9
+ 2.7
-14 .7
$708,804
Total. .... . ... $843,250
$908,085
+19.0
- 7.1
"Includes Iho figure.'! of two banks ill Texarkana, ArkansllS, locatcd in the Eighth Distrie!.
Savings deposits at reporting banks increased seasonably by 0.5 per cent in
August and maintained a gain of 3.4 per
cent over those a year ago.
Savings
Deposits
I
~cceptance
Outstanding acceptances executed by
ar/cet
banks in this district, which had reached
a low level for the year in July, increased
sharply in August, the total at the close of the month being
SAVINGS DEPOSITS
Beaumont ..... ... . . . ....
Dallas ..... . ..... .......
EI Paso .......... . ......
Fort Worlb ....... . . . . . ..
Galveston ...... .........
Hou.ton .. .... . . .... .. ...
PorI Arthur ... . .........
San Antonio . ............
Shreveport . .. .......... .
Waco .. . .. ..............
Wichita F.Us ............
All othors . .. ............
Total. ............
Number of
recorting
anks
3
8
2
3
4
10
2
5
3
3
3
69
115
August 31, 1937
Percentage chan,o in
savings deposits rom
Numbor of Amount of
savings
6avin~.
July 31,
Au\ust 31,
depositors
depOSIts
936
1937
9,475 $ 3.649,922 + 1.6
+ .7
88,802
25,627,232
.3
+ .2
15,141
7,946,934 + 15.5
+ .8
37,040
12,950,598 + 5.9
+ .4
18,091
11,305,026 + 5.0
+ .7
71,328
28,446,218 + .1
+ .7
6,877
2,478,379 + 7.1
+ .2
21,993
16,754.866 + 0.2
+ .1
24,284
11,199,744 + 2.0
+ .5
9,379
4,972,426 - 8.8
.5
6,737
3,396,554 - 1.3
+1.4
56,792
28,278,885 + 7.8
+ .7
-
365,029
$157,006,754
- ---+3.4
+ .5
-------------------------------------------------------------------DISCOUNT RATES CHARGED BY MEMBER BANKS DURING SEPTEMBER, 1937
Prevailing rnles
Fort Worth
EI Paso
Dallas
RateF"~arged customers on primo commeroial paper suoh lIS is now eligible for rediscount under tbe
1-6
5-6
Rate er.1 Reserve Aet . .. ... ...... .. . .... .. .. .. ................................... . .... .
1~8
3-6
2~-3
Rato c i rgod on loan. to otber b.nk. scourod by bills receivable .... ... . .. . ...... . . ..... ... . .. .
i~n thans sceurod by prime stock excbange or otber currenl collateral (not including loans placod
a Der markets through corresllOndenl banks):
4-8
6
4).11
4-8
5-8
4-8
Rato eb
4-8
€h8
2-8
Rato arged on commodity paper scoured by warebouso receipts, olc .. •..... ....•.... . ... .. .•.•
5-10
5-8
6-8
On c.ttle loans ....... . ..... . ....... . . ......... .. .. .. ...... . ................. .. .... ..
b
Ti~n.~.::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
Housten
San Antonio
Waco
2-6
3
5-7
6
4-6
4-5
3-6
3-7
1* 6
6-8
6-7
5-7
5-8
6-8
6
5-8
3-8
6-8
---------------------------------------------------------------------------------------------------
MONTHLY BUSINESS REVIEW
6
INDUSTRY
The movement of cottonseed to Texas
mills was in unusually heavy volume in
August,and total mill receipts of 210,676
tons represented approximately one-half of the seed obtained from ginnings in Texas during the month. While
crushings of cottonseed increased sharply, being more than
double the volume crushed in August last year, the amount
processed was only 43 per cent of receipts, with the result
that stocks of cottonseed on hand at mills increased considerably. Receipts and crushings at all United States mills
were also substantially larger than a year ago, but the
increases reflected principally the operations at Texas mills.
Shipments of crude oil, cake and meal, and hulls, at both
Texas and United States mills, showed large increases over
those in August last year_
Cottonseed
Products
STATISTICS ON COTTONSEED AND COTTONSEED PRODUCTS
TexllS
United States
August 1 to August 31
This season
Last season
Cottonseed reooived at mills
(toos) .. .... . ....... ..... . .
210,676
Cottooseed orushed (tons) .....
00,030
Cottonseed on haod Aug. 31
140,040
(tons) ......... . ..... .. . . . •
Produotion of products:
Crude oil (pouods) ...... ..... 25,997,46Q
Cake aod meal (tons) .........
41,846
23,930
Hulls (toos) ........ ... ......
Linters (ruoning bales) ........
18,267
Stooks on hand Aug. 31:
Crude oil (pounds) ...........
6,816,026
Cake and meal (tons) ... . .....
14,095
14,631
Hulls (tons) .................
Linters (running bales) ...... . .
22,843
SOURCE: Burenu of Census.
80,475
42,956
August 1 to August 31
This season
LlISt SOllSon
380,728
179,272
252,280
102,644
47,395
241,239
171,571
12,406.942
20,536
10,929
8,499
51,812,215
78,442
48,738
38,998
29,843,930
46,418
27,426
22,080
4,336,174
8,656
10,268
12,995
16,266,073
33,700
43,687
77,606
15,289,516
44,445
24,235
36,760
Textile
Milling
The utilization of cotton by domestic
mills increased 3.7 per cent from July to
August and exceeded consumption in
August last year by 5.1 per cent. The amount used during
the month totaled 604,380 bales in contrast with 583,066
bales consumed in the preceding month, and 575,014 bales
processed in the corresponding month of 1936. Stocks of
raw cotton on hand at mills declined to 960,899 bales on
August 31, which was 328,808 bales lower than a month
earlier, but 205,111 bales higher than on the same date
last year. While the amount of cotton held in public storage
increased 24.. 8 per cent in August, holdings at the close of
the month were 18.7 per cent .lower than a year ago.
COTTON CONSUMED AND ON HAND
(Bales)
August
August
August 1 to August 31
1036
1937
This senson
LlISt aeason
Cotton-growing states:
Cotton consumed. . . . . . . . . . .
505,449
Cotton on hand Au~. 31 inConsuming establishments.
Public storage and compresses .. ....... . .. . .. .
United States:
Cotton consum ed. . . . . . . . . . .
604,380
Cotton on hand Au~. 31 inConsuming cstabhshments.
Publio storage and compres.qes .. . . . ... ....... .
SOURCE: Bureau of Census.
Cotton
Movements
480,868
575,014
505,449
480,868
732,004
584,803
3,436,855
4,272,372
604,380
575,014
960,899
755,788
3,504,127
4,308,995
Coincident with the heavy ginnings in
August, the concentration of cotton at
Houston and Galveston was in very large
volume, receipts being about three and one-half times those
a year ago and the largest since 1930. On the other hand,
exports continued to decline and were 4,2.2 per cent lowed
than in August, 1936. Reflecting the heavy receipts an
small exports, stocks at these ports on August 31 were
considerably larger than a month earlier or a year ago.
After showing a steady decline during the preceding four
months, exports from the United States increased in August
to a total of 220,415 bales, which was substantially larger
than in August, 1936, but smaller than exports in t~at
month of other recent years. Shipments to foreign countnes
amounted to 124,312 bales in July this year and 182,4.87
bales in August last year. In comparison with a year ago, ex'
ports to Italy and Germany showed substantial increases,
while those to the United Kingdom and Japan declined.
The downward trend in the cotton market continued during the past month and prices reached the lowest l~vel
since 1933. The average price of spot cotton, middhng,
%-inch staple, at ten spot markets was 8.75 cents pel' pound
on September 16, or more than three cents under the average price for · September, 1936.
COTTON MOVEMENTS THROUGH THE PORT OF GALVESTON
(Bnles)
August 1 to August 31
August
August
This sellSon
Last scascn
1937
1036
105,126
36,813
Receipts .. . ........ . ..... .•..
105,126
36,813
17258
46,717
17,258
Exports ..... . ............•..
46,717
384;148
362,291
Stocks, August 31. .. . . ...... .
COTTON-GALVESTON STOCK STATEMENT
(Bales)
August 31,
For Great Britain ...... . . . . .. . .. ... . ..... . .... .. ...•. •. ••
For France ....... ... ....... .. ....... . . . ......... .. ..... •
For other foreign ports ... .. . .. . . •. ...... ....... ..... .. ....
For cOlIStwiBe ports ......... ..... ..... .... ...... .. .... . .. .
In compresses and depots .... ............. . .......... . .•...
1937
100
400
3,700
500
380,148
Tota1. .. . .................. . ......... .. . ..... .
384,148
August 31,
1036
30()
400
3,400
2,000
346,101
-
352,291
COTTON MOVEMENTS THROUGH THE PORT OF HOUSTON
(Bales)
August 1 to August 31
August
August
This,senson
Last senson
1937
1936
145.808
30,488
Receipts .... .. . ............. .
145,808
36,488
37.985
48,024
Exports .. . . .... ... . .... . . . .•
37,085
48,924
320,197
108,234
Stocks, August 31. .......... .
SEASON'S RECEIPTS, EXPORTS, AND STOCKS OF COTTON AT ALL
UNITED STATES PORTS-(Bnles)
August 1 to August 31 D
This sellSon
Last seasO
670,691
886,507
Receipts ... ......... . ..... .. .... . . .. . . .. . ............... .
47,982
61,159
Exports: United Kingdom . . ....••..... . . ..•...... . .. ..•.•
France ........................•................
20,585
29'~26~
24,439
10,0
Italy ................. .. . . .•.. . .. . .............•
50,261
18,216
Germany ................. . . . .... . ............ ..
Other Europa ...... . . ...........••.•.......... . •
.2,316
nn ...............•......•.................. .
17,040
24'188
AI other countries ... ........ . .. . ....... . ....... .
8,783
~
26'm
Jar
Total exports ..................... . ..................... .
Stocks held at all United States ports, August 31. ........ ... .
220,416
1,506,908
SPOT COTTON PRICES-(Middling b..is)
(Cents per pound)
August, 1937
~:: 6~;!M·.:::::: :::::::::::::::::::: : :::
Dnllas ...................... .. ........... .
HoustOD ................ . ...... . .. . ....... .
Galveston ....... . . . . .. ................... .
High
Low
11 .35
11.28
10.85
10.05
10.05
9.38
9.30
8.63
0.08
0.07
182,487
1,314,090
September 15,
1937
9.21
8.99
8.35
8.73
8.74
MONTHLY BUSINESS REVIEW
The upward trend in crude oil production in the Eleventh District continued
throughout August, the daily average output for the month
reaching a newall-time peak at 1,725,185 barrels. This
fidg~re represents an increase of 102,44 5 barrels over the
ally production in July and is nearly one·third larger
than. that in the corresponding month last year. While prodUctlOn in all Texas fields was larger than in the preceding
rlonth, the expansion was most pronounced in the west
. exas, south Texas, and Texas Coastal fields. The output
~n north Louisiana and New Mexico fell slightly under that
In July. Effective September 1, allowable production in
Te~as was reduced considerably with the result that the
~ally average output in the district during the week ended
beptember 11 showed a decline 'of approximately 75,000
arrels from that in the preceding week.
7
CRUDE OIL PRICES
(Prico pet barrel)
Petroleum
28 Drilling operations during the five weeks ended August
, ~s measured by the number of wells completed, were at
a slIghtly higher rate than in the preceding period.
OIL PRODUCTION
(Barrels)
Increaso or decrease from
July, 1037
August, 1037
~~~hT~~xas ... . ............ .
East T as ....... .......... .
Total
Daily Avg.
Total
155,745
271,360
600,003
271,045
225,261 .
Daily Avg.
South fxas ............ .. . .. .
TexllS C~~~~C : : : : : : : : : : : : : :
4,828,100
8,412,450
18,600, 100
8,402,400
6,083,100
New~tal. Texas .......... . . .
North ~~~~i~~~:::::::::::::
47,226,150
3,536,000
2,718,600
1,523,423
114,065
87,607
+3,215,300
11,350
28,150
+103,718
365
008
Total Distriot .... . .. .... .
53,480,750
1,725,185
+3,175,800
+102,445
+ 140,450
+1,004,000
+ 243,400
+1,007,650
+ 630,800
+ 4,531
+ 35,200
+ 7,851
+ 35,408
+ 20,638
AUGUST DRILLING RESULTS
Number of wells
Initial
- - - - - - - - - - - - - production
ProG88
Fail(barrols
Comduccrs
wolls
ures
daily)
pletiona
~~~hlexas .............•......
Enst To~X::'" ................. .
South Tex.;,· .... · .. · ........ · ..
Texas COlISt~(.·. : : : : : : : : : : : : : : : : :
101
63
21
108
33
56,080
335,042
1,845,407
05,672
56,453
31
130
326
8
13
1,800,454
37,854
20,758
•August total d' t . t
1 680
1 280
53
tJuly totals, d{st:ioto. .'.': : : : : :: :: : 1;323
1;010
48
'}Ul8ufist figures ropresont five weoks ondod August 28, 1037.
t u y gures ropresent four weeks onded July 24, 1937.
347
265
1,049,006
1,461,320
NeJ~1 :rexna.. .. ... .. ... .....
North ~I~O... .. .............. ..
UlSlana.................
307
345
353
376
163
188
280
328
264
127
18
2
1,544
72
73
1,187
61
41
4
4
3
-
August 31,
Nortb and west centrnl Telas ........... , ................. .
East central Texas ....................................... .
Texna Gull ooast. . .................... .. ................ .
West Texas-Now Mexioo .. ....... ..... ..... . ............ .
Nortb Louisiana .... . . ...... ....... .. .... . ............... .
NOTE: Prices quoted apply to oil 40 gravity and abovo.
'Prices lor a comparable grade 01 oil not available.
SOURCE: "The Oil Weekly", Houston, TolllS.
August 31.
1987
$1.20
1.27
1036
$1.08
1.15
•
1.41
1.08
1.2~
1.10
Building
Heavy awards for public works and public utility construction and an expansion
in residential building increased the total value of construction contracts awarded in the Eleventh District to
$21,531,000 in August, which is the largest for any month
since June, 1931, and the heaviest August volume since
1929. Residential contracts were 21.3 per cent higher than
in July and 26.7 per cent above those in August, 1936.
The volume of all other contracts, including public works
and public utilities, increased 135.8 per cent from July to
August and was 209,1 per cent larger than a year ago_
Building permits issued in fourteen principal cities in
August had a value of $4,,323,618, a seasonal increase of
15.6 per cent over July, but a decline of 7.2 per cent from
a year ago. August was the third consecutive month in
which the valuation of permits issued fell below the total
for the corresponding month of 1936. The number of permits issued was larger than in July and about the same as
in August last year.
VALUE OF CONSTRUCTION CONTRACTS AWARDED
(In tbousands of dollars)
August
August
July
January 1 to August 31
1037
1936
$ 8,000
Eloventh Distriot-total.. . $ 21,531
4,350
3.432
Residontial. . ...... . .. .
17,181
5,558
All other ............. .
285,104
275,281
United States-total" . . . . .
73,448
100,523
Residential. .. . ... . . . . .
211,656
174,758
All othor ............. .
·37 st.t.. cast of the Rocky Mountaina.
BOURCE: F. W. Dodge Corporation.
1037
$ 10,871
3,586
7,285
321,603
81,046
240,557
1037
$ 06,MO
34,561
62,098
2,137.802
678,890
1,450,002
1936
$ 02,748
25,769
66,979
1,709,019
507,586
1,292,333
BUILDING PERMITS
January I through AugURt 31
August, 1937
Amarillo
Austin ............
Beaum" i .. ·.. · .. ·..
corr,u: : . : ...... •
rwtl .......
Dal...
EIP... ····· · · .. ·· .. ·
Fort v7~rth·. ·· " ...•.
Gnl'cst
...... . . .
aOusto~n ...........
Port Arth~r ... . .....
San Antonio' .... .. .
Shfovepo t ........ .
Waco r ..........
Wiobiia ·J.ialis.' : : : : : : :
No.
Valuation
August, 1036
No.
Valuation
37 $ 176,870
183
277,582
157
102,783
120
155,110
361
300,278
65
50,161
100
322,898
64,ROI
110
467 1,817,440
151
79,166
485,830
262
270,831
158
44
94,820
15
25,040
20 $ 00,141
275,887
186
36,320
121
818,572
137
484,070
479
46,074
56
172
815,585
67,166
106
400 1,007,748
177
86,140
517,368
283
122
372,578
37
46,616
17,843
32
Total. ...... 2,320 $4,323,618
$4,661,117
Ch'
-.
- - ----2,337
Percent.go cbange
valuation
over year
+155.8
.6
+
+183.0
- 81.1
- 10.4
+ 8.0
- 60.4
3.4
+ 80.3
8.1
6.1
- 24 .0
+103.4
+ 45.4
-
7.2
Percentago chango
valuation
over month
Valuation
July, 1037
No.
37 $ 79,730
435,698
161
10r,800
145
471,640
105
619,246
420
64,504
62
340,147
207
71,448
118
022,045
827
61,484
135
282,370
200
165,010
136
01.625
51
25,270
20
2,223 $3,741,007
+121.8
- 36.3
6.5
- 67.1
- 37.0
- 22.3
5.1
0.2
+ 97.1
+ 28.8
+ 72.1
+ 68.7
+ 3.5
+ 2.7
-
--
+ 15.6
1036
1937
No.
Valuation
269 $ 702,144
2,844,822
1,245
832,117
1,150
2,501,437
1.~04
5,184,614
3, 08
836,034
703
5,440,236
1,484
804,526
825
3,186 13,885,585
60P,076
1,253
3,451,060
2,145
2,122,550
1,124
783,221
386
221,256
133
No.
Valuation
238 $ 451,018
1,311
3,121,824
029
802,786
1,912,069
872
4,057
7,767,760
640,248
503
1,312
6,530,140
1,176,701
866
2,006 12,440,451
1,063
663,878
1,080
3,083,460
076
1,545,020
201
469,143
151
283,181
----- ---
18,524 $40,318,587 17,545 $40,905,678
Percentago cbango
valuation
over period
+55.4
- 8.0
+ 3.7
+30.8
-33.3
+28 .8
- 16.7
-31.6.
+11.6
5.4
+11 . 0
+37.4
+67 .3
-21.0
-
1.4
MONTHLY BUSINESS REVIEW
8
SUMMARY OF NATIONAL BUSINESS CONDITIONS
(Compiled by the Board of Governors of t he F ederal R<!sel've System)
... "'"
.
INDUSTRIAL PRODUCTION
•to
'30
130
'20
1\
r....
\
100
80
10
/
,
\
90
eo
10
l\rJ
80
.~
"21
'~I
\flZ
110
100
A
Ii"
ITI" rv
V
~
10
eo
120
~
\
"0
60
lell
I9l4
1033
10lf
1031
'0
Index of physical volume of production, adjust ed
for seasona l variation, 1928-1925 a verage
100.
By months, January, 1929 to August, 1987.
=
...
FACTORY EMPLOYMENT AND PAYROLLS
'Ula
IZO
"
Cliff
1&0
"""
' ~
I 10
110
100
~
'\
'0
~
I" ltV,J
I"
IA\
\ V :.J If", 'I '
Poyroll'_h
f
\/' /
.0
10
to
eo
40
Employment
/l'
90
j
1!ilZ.9
1m
TO
60
ao
40
~o
1931
1932
19!$
1934
19)'
PRODUCTION AND EMPLOYMENT
Volume of industrial production, as measured by the Board's seasonally add
justed index, was 117 per cent of the 1923-1925 average in August as comp~re
with a level of 114 per cent in June and July and 118 per cent during the sp~l!1g.
Steel production rose slightly further and was close to the high level prevaJ~ln~
before strikes curtailed output in June. Automobile production was maint!lme
in considerably larger volume than is usual in the month preceding the shift to
new model production. Lumber output declined, following a pe,r iod of incr~ase.
In the non-durable goods industries output increased in August, reflecting c~leflY
increases at cotton and woolen textile mills, foll,owing- considerable declines In hth~
preceding month. Activity at meat-packing establishments increased somew a
from an extremely low level. Shoe production showed less than the usual seasonal
rise. At mines, output of coal increased less than seasonally, while crude petroleum production continued to expand.
Value of construction contracts awarded, as reported by the F. W. Dqdge
Corporation, declined somewhat in August and the first half of September. Awards
for private residential building showed little change and were in about the saI?e
volume as in the corresponding period of 1936, while publicly-financed residentIal
building declined and was in considerably smaller volume than last year.
80
I
10
I 00
In August industrial activity advanced from the level of the two prece~ing
months and on a seasonally adjusted basis was close to the volume of last sprmgi
Early reports for September indicate a decline in steel output and a seasona
decrease in the production of automobiles.
1936
t937
Indexes of number employed and payrolls, without
adjustment f or sea sonal va riation, 1928-1925 average
100. I3'y months J anuary, 1929 to August,
1987, Indexes compiled by the United States Bureau
of L abor Statistics.
=
EXCESS RESERVES OF MEMBER BANKS
" .........4
II LL10t!.OfDOU.''''
4
Factory employment, which had increased in July, showed less than a seasonal
rise in August. Factory payrolls increased by about the usual seasonal amount.
The number employed at steel mills increased somewhat further, while at authomobile factories, railroad repair shops, and sawmills employment declined. In t e
textile industries employment in the production of fabrics decreased somewh~t,
while employment in the production of wearing ap'p arel increased. Changes In
employment in most other manufacturing industries were small.
AGRICULTURE
Department of Agriculture crop estimates based on September 1 conditio~S
were about the same as the estimates a month earlier, except for an increase III
cotton and a decrease in corn. Output of leading crops is substantially larger tha~
' last season. Supplies of livestock and meats are expected by the Department 0
Agriculture to continue smaller than last year.
DISTRIBUTION
Mail-order sales and sales at department stores showed somewhat less than
the usual seasonal increase from July to August. Freight-car loadings continued
at the level of the previous month.
COMMODITY PRICES
o
W ednesday fi gures of estimat ed excess resel'ves for
all m embe r ba nks and for New York City, January 6, 1982 to September 22, 1987.
..
MEMBER BANK RES?pVES AND RELATED ITEMS
Lli ONSOIOOUAltS
IILI.IOH101
V
"
"
10
OoIdS*';)
'S
,I
~-c!:TIOn=1
/
I-~::i'-'''''''
--",t ~
roY'
H--, ""I----
V
1-=-:'
Ir
,......,-
~, ~-
"L.
=:
In4
I
~ J.
1935
1936
1031
1~
tSl3~
fJ'\..
1936
V
/'
....
1931
W ednesday fig ures. Janua ry 3, 1984 to September
22, 1987.
Cotton prices declined considerably further from the middle of August to ~he
third week of September and there were smaller decreases in cotton goods, sll~
hides, steel scrap, copper scrap, and lumber. Prices of livestock and lives toc
products, after some decline in the latter part of August and the first week of
September, advanced sharply in the middle of September.
BANK CREDIT
Excess reserves of member banks increased in the five-week period ending
September 22 from $800,000,000 to $1,000,000,000 as the result of a release of
gold by the Treasury from its inactive account. The bulk of the increase in exces
reserves went to New York City banks and on \ September 22 these banks ha
excess reserves of $350,000,000, Chicago banks had $50,000,000, and banks elsewhere $600,000,000.
d
Commercial loans at reporting member banks in 101 leading cities, reflectin~
in part seasonal demands, continued to ip.crease SUbstantially during the fou f
weeks ending September 15, both in New York City and outside. Holdings
United States Government obligations and of other securities showed a further
decrease, with the result that total loans and investments declined somewhat.
°
MONEY RATES
Rates on nine-month Treasury bills declined from 0.71 :per cent early in
September to 0.44 per cent later in the month, and average YIelds on long-terrtl
Treasury notes declined from about 1 % per cent to below 1 % per cent.
@FedFRASER