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Monthly Review of Business and Industrial Conditions in the EleVenth Federal ReserVe District, Federal Reserve Bank of Dallas CHAS. C. HALL. Assistant Federal Reserve "aent W. F. RAMSEY. Chainnan and Federal Reserve Agent. Volume 5 Dalles, T exes. October IS, Summarized, the outstanding features of the district's business indices for the month of September are as follows: A shrinkage in wholesale trade ~tivity; an increase in commercial failures; an mcreased volume of sales and better collections in retail trade; a marked improvement in transportation service and in labor conditions; and a gratifying increase in the volume of bank clearings, building permits and postofiice receipts. While the downward course of the cotton market has had a depressing effect upon that industry and has somewhat checked the free course of fall trade, it is worthy of note that a goodly portion of the South Texas crop was picked and sold before the heavy decline in the market occurred, while an encouraging development in the Northern part of the belt is the fact that the 1920 crop is grading much higher, and therefore promises a much smaller proportion of unmarketable staple than was the case last year. AGRICULTURE: Fine progress in the maturing and harvesting of fall crops has been maintained in most of the Eleventh District since about September 10th. On that date the heavy rains, which began in August, ceased, and conditions since then have permitted an uninterrupted advance in agricultural activities incident to the gathering and marketing of crops and preparing the soil for fall seeding. The Texas cotton crop on September 25th showed a loss of 6 points in condition as compared with August 25th, according to the Federal Bureau of Crop Estimates, which at the end of September reported the condition to be 61 per cent of normal, a against 67 per cent at the end of the previous month, and 74 per cent on J uly 25th, making a total loss of 13 points during the period from July 25th to September 25th. The Government report of September 25th forecasts a total production of 3 583 000 bales for the States of Texas, as compared with last year's production of 3,064,998. September deterioration was the result of continued ravages by weevils and worms. The destruction of young or late cotton has been especially severe, and, except in a few localities, there will be little or no top crop made in the district. Notwithstanding the insect damage which the crop has suf- New Cotton Crop Grades Higher Than Last Year's Cotton 1920 NO.9 fered this year on account of an unusually wet growing season, most of the new crop, according to reports received by the MONTHLY REVIEW from all parts of the district, is much superior in quality to last year's crop. The staple raised in 1919 generally fell below middling grade; while the present crop gives every promise of making an average grade of middling or better. The improvement in grade is due partly to better weather conditions prevailing during the harvesting and ginning period, and partly to the fact that "bollies" and stained cotton are being left in the field this year to a much greater extent than was the case last year. A survey made by the Federal Reserve Bank of Dallas as of October 1st, 1920, covering the heaviest cotton-producing sections of the district, elicited reports from 76 Texas counties showing the condi. tion and prospects of the crop in those counties, with the results summarized below: 1. Asked whether the average grade of the 1920 cotton crop will be higher or lower than that of 1919, correspondents representing 75 per cent of the reporting counties answered "much higher," 19 per cent replied "about the same," and 7 per cent reported "lower." It is believed that these statistics are fairly representative of the district as a whole. For the 57 Texas counties which reported marked improvement in the quality of the staple this year the estimated total production in 1920 amounts to 1,444,000 bales, or 40 per cent of the estimated total for the State. 2. According to the best information available very little of the early ginnings were withheld from the market. Until the "middling" spot price fell below 25 cents per pound, cotton in this section was offered freely on the spot market. During the past three weeks, however, the decline in the market has given a distinct check to the marketing movement, the farmers being inclined to hold back as much of their product as their financial situation will permit. while in some sections the local buyers themselves have temporarily withdrawn from the market pending a mabilization of price levels. 3. Picking has been practically completed in the Southern tier of counties in this district. In the central zone about 50 per cent of the crop has been gathered, while in the Northern belt (where the crop is about 30 days late) picking has just fairly started. The expected general shortage of labor has failed to materialize. While a few counties This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) report a serious scarcity of pickers, complaint on this score are surprisingly few and in most sections cotton is being harvested at a normal rate, due it is understood, to the fact that the favorable weather now prevailing enables many farmer to gather their own crop without out ide help. Wages demanded by pickers are higher than a year ago the ruling r ate having advanced in most sections from $1.50 to $2.00 and $2.50 per hundred pounds. Other Corn harvesting is progressing well in Texas the yield being large and the quality good, most of it grading No. 1. In Arizona prospects have improved, though much of the late corn in the dry lands of t hat State will not mature before frost. Hail torms al'e reported to have destroyed a con iderable portion of the corn Cl'op in New Mexico during the early part of September. In Southern Oklahoma the harvesting of early corn, favored by good weather, is making excellent progress, and the late crop is now safe from the danger of early fro t . Crop Threshing of wheat in the Panhandle has made slow progre 5, due to delay cau ed by August rains. Elsewhere in the district the movement of the 1920 crop is well under way, and faU seeding for the next crop has begun, though a late start will be made in some sections of the district owing to the lack of sufficient moisture in the soil to produce proper germination. Harvesting of rice, hay, peanuts, sweet potatoes and feed crops is making good headway, with yields reported to be satisfactory. GALVESTON STOCK STATEMENT September 30, September 30 1920 1919 For Great Britain_ _ _ .. .. .......... _.. __ .._....... _ _ 9,917 20,291 For France ._ _. ___ .. _ ._. _ ..... _. _ ... _ ___ ___ ........ __ .. 16,159 For other foreign ports ..... ___ .. _._._. __ _..... 24,201 14,354 For coastwise ports ___ ... __ ... _ __ _...... _ . .. _ ____ 3,000 300 In compresses _. _____ ... ___ ................. _....... 139,545 82,932 Total.._____ .......... __ . __ _................ _ ...... 192,822 117,877 COTTON MOVEMENTS AT ALL U. S. PORTS (August 1st to September 30th) This Season Receipts . _____ __ .........._ ............... _ .. _ _ ._ .. ._... 601,126 Foreign exports .....___ ... ___ _ ____ _____ 422,186 ._. ...... . Stocks September 3Oth ... __ . __ .... __ ._ ____ ._.. 830,719 Last Season 580,785 759,742 831,518 Grain Movements September witnessed a heavily increased movement of wheat in this district. Field agents of the Department of Agriculture estimate that on October 1st 9,288,000 bushels of the Texa wheat crop, or approximately 71 per cent, had been marketed. At the corre ponding period a year ago the movement had made but little progress, owing to the shortage of freight cars. September wheat exports from the port of Galve ton totaled 7,759,355 bushels, or an increase of 5716,612 bushelS over the total amount exported in July. Total exports since July 1, 1920, have been 19,416,758 bushels, as against only 5,608,672 for the corresponding three months in 1919. During the same comparative periods the exports of barley increased from 134,544 bushels in 1919 to 344,5441 in 1920. Receipts of wheat and corn at five leading grain centers for the month of September showed increases over the preceding month, while oats registered a decrease as shown below. Movements of cotton through the port of Galveston during the past COMPARATIVE GRAIN RECEIPTS month were on a larger scale than September August during the corresponding month a year ago. Re(cars) (cars) ceipts showed an increa e of 140,595 bale , or 140 Wheat 6,752 6,350 per cent, and exports an increase of 65,894 bales or Corn __ .__ ._ ...._____ ...... _ .... __.... _ _. _____ _ ___ ._ _ ........ 146 66 62 per cent. Total receipts during the pre ent ea- Oats .__ .___ .. ___ ... _ _ _ _ ___ .. _ __ .. ..... .... ...... ...... ...... 392 635 son (August 1st to September 30th) exceed la t season's receipts by 146,678 bales or 80 per cent, although current exports since August 1st have not yet reached the volume exported during the corre- LIVESTOCK: sponding period last year largely because the crop Ranges Since the date of our last report matured m uch later this year. The eason' exports there has been some deterioration in to September 30th total 246,073 bales, a against range conditions in certain sections of the district. 267,823 last season. As a result of continued dry weather in New Mexico the condition of the rtlnges in that State is e timated to have declined from 90 per cent of nonna! on September 1st to 80 per cent on October 1st, and observers report that unle more general rains are SEPTEMBER COTTON MOVEMENTS THROUGH received in that State before frost, further deteriorTHE PORT OF GALVESTON ation will ensue. Our Arizona correspondents report September, that the ranges in that State have partially recovSeptember . 1920 1919 ered from the August drouth as a r esult of SeptemReceipts __ .. _ _______ ... ____ _ _ ...__ ._____ ___ 242,844 .... .... _____ 102,249 ber rainfall, which, however, wa comparatively Exports _ _. __ __ _ _._._.___ .... _ ____ _ _ _ 169,471 ... _ _.. .. .. . _ ._____ 103,577 light. Locally there is a1 0 need of rain in the Stocks September 30th_._ __ .. _ _ _.. _ 192,822 ... .. .... _ _ 177,877 pastures of South and West Texas. With the excepCotton Movements tions noted above, conditions throughout the district were generally favorable to livestock during the past month, particularly in the process of range curing. In fact, on the whole, it may be said that those engaged in the livestock industry in this district are well equipped to carry their cattle through the winter, having, as a rule, an adequate supply of stock water and an abundance of feed. September Prices Livestock values at local markets showed a narrow range of fluctuations during the month of September. The cattle market was weak and listless, conditions being unfavorable for the sale of such grades as were offered. Beef cattle and butcher stock closed the month' at a loss of from $1.00 to $1.25. At the end of September heavy steers were being offered at $8.00 and good cows were slow sale at from $7.00 to $7.25. The demand for calves was somewhat more active. During most of the month the best grades of vealers commanded $11.00 to $11.25, though at the closing values had receded to $10.50. There was a brisk demand in the hog and sheep divisions, the former reaching a top of $17.20, as compared with the August maximum of $16.60. The end of the month found hog prices shrinking as a result of the drop in the corn market, the closing quotations being around $15.25. Lambs found ready sale at rising prices during most of the month, registering a net gain of $2.00. In all divisions of the local markets livestock prices were generally irregular and unsettled as a result of conditions in outside markets and the downward tendency displayed by the grain markets. FORT WORTH LIVESTOCK RECEIPTS September, 1920 Cattle ................ 69,316 Calves ................ 34,987 H ogs .................. 33,458 Sheep ................ 20,716 August, 1920 67,387 36,713 16,214 16,392 Loss or Sept'ber, Loss or Gain 1919 Gain G 1,929 66,938 G 2,378 L 1,726 36,841 L 1,854 G17,244 18,334 G15,124 G 4,324 32,122 L11,406 LUMBER: Pine Mill Operations According to the reports rendered to the Southern Pine Association by 28 pine mills located in the Eleventh district, 'the production of Southern pine lumber in September was about equal to the volume milled in August. An improvement in the car situation is reflected in the statistics of September shipments, which, for the first time since February of this year, exceeded the volume of production, though the margin of excess was slight. Unfilled orders on the books of the reporting mills at the close of business October 1st amounted to 58,448,655 feet, as compared with a total of 75,778,485 feet on August 27th. After making due allowance for the fact that the latter total repre~ents 32 reporting mills, while only 28 mills reported at the close of September, the comparison shows a substantial decrease in the volume of unfilled orders at the end of the month, due in part to better deliveries and in part to a f alling off in new orders. Some slackening in the demand during the month of September is not surprising, in view of the fact that a number of distributers and large consumers unquestionably found it desirable to stock up heavily during the month of August in anticipation of the freight rate increase which became effective on August 26th. Despite the slackening in the new TOP LIVESTOCK PRICES AT THE FORT WORTH business booked by the reporting mills last month, MARKET our reports show that the demand is still well ahead August, September, of the supply, as the volume of unfilled orders at September, 1920 1920 1919 ·the end of the month was equivalent to about four $11.00 weeks' normal production, with an increasing de$12.25 Beef steers ...................... $11.25 Stocker steers ................ 10.00 mand in prospect as a result of the revival of build8.65 8.60 Butcher cows 8.35 9.50 ing activity indicated by September statistics of 8.75 Stocker cows .....--........... 7.50 7.75 8.75 building permits . e • • • • • • • _ . ____ • • Calves ..........._-- ................ Hogs ................................ Sheep ....•.................... __ ... Lambs ................. __ .__ ...... 12.00 17.20 19.25 13.00 11.25 16.60 19.50 13.60 14.50 20.00 14.00 15.00 There is presented in the following statement a summary of mill operations in this district for the month of September. SEPTEMBER PINE LUMBER STATISTICS Livestock Movements The bulk of cattle shipments reaching the market in September came from West Texas ranges. Receipts also included a fairly liberal quota from East Texas, while a few consignments were contributed by Oklahoma and North Texas. A notable feature of the month was the increase in volume of hogs arriving at the markets, the supply being almost double that of the corre pan ding month a year ago and more than twice as large as the receipts for August, 1920. Receipts of sheep showed an increase over both the months of July and August, but despite that fact the September total was the smallest recorded for that month since the year 1915. Number Average Average Average Unfilled Average of reporting mills.................................... weekly production.................................... weekly shipments .................................... weekly orders received............................ orders on hand October 1st.................... weekly normal production...................... 28 9,417,105 10,363,527 7,460,463 58,448,655 14,363,724 ft. ft. ft. ft. ft. OIL: A decrease both in the district's total oil production for the month and daily average yield is shown by the record for the month of September, as compared Production Off with that of the previous month. In Texas the September daily average was 290,448 barrels, compared with the August average of 299,729 barrels ; while in North Louisiana the daily flow decreased from 98,460 barrels in August to 92,535 barrels in September. The district's total production last month was 11,489,510 barrels, or 854,376 barrels less than the total for August. The best showing was again made by the central West Texas field, where the run for the month, amounting to 3,331,227 barrels, although less than was produced in the longer month of August, reflected ari actual increase in the daily average production of this field. With the exception of the Texas Coastal field, the district held its September production well up to a normal rate despite the slight decrease from the high August total. The loss shown in the coastal section is largely accounted for by the fact that the output of one of the largest wells in that territory decreased from 20,000 to about 7,000 barrels per day. Stephens County was again the center of greatest activity. This field seems to be in its infancy, as the proven territory in this county which yet remains to be drilled is so large it is believed several years will be required to carry out the drilling program. Fewer Completiou Both Texas and North Louisiana drilling results for September were less fruitful than those of the preceding month. For the district as a whole a total of 636 wells were completed last month, of which 435 proved to be producers with an aggregate initial production of 80,587 barrels. This compares with the August record of 706 completions, 441 producers and initial production totaling 103,205 barrels. FieldNorth Texas ............................... _..... Central West Texas ............. _........... Texas Coastal .................................... Corsicana Misc................................... Rainy weather prevailing in most of the district's oil fields during the early part of September was largely res pop sible for the decline in both drilling operations and production during that month. Among the favorable developments of the month was the bringing ip of a number of good wells in the Hull and West Columbia fields of the Texas Coastal section. During the latter part of the month a well was completed in the proven area at West Columbia which made around 15,000 barrels the first day and greatly stimulated interest in other wells in that vicinity now nearing completion. Wildcat operations produced little results of value during the month, as all activities in unproven territory have for some time felt the restraining influence of financial conditions and scarcity of material. Crude oil prices continue steady and unchanged. Premiums are still being paid in many instances, and well authenticated reports indicate that some of the smaller refineries in this ection have until recently found it difficult, if not impossible, to obtain sufficient crude oil to meet their operating reqUirements. There is some evidepce, however, of a growing tendency on the part of such buyers as are paying premiums for crude oil to resi t or reduce the payment of such premiums, due, it is said, to the new burden assumed by the refiner as a result of the recent freight rate increase, and to the approach of winter with its lessened demand for gasoline. At the same time, this tendency toward price resistance seems to be confined to the matter of premiums, and is therefore to be considered as a development of local rather than general significance. Crude OilPriees OIL PRODUCTION --August----September-Total Daily Avg. Total Daily Avg. 86,621 2,598,650 88,748 2,751,182 111,04.1 3,331,227 108,670 3,399,778 90,286 2,708,583 99,682 3,090,166 2,500 75,000 1,629 50,500 --Increase or DecreaseTotal Daily Avg. Dec. 2,127 Dec. 152,532 Inc. 1,371 Dec. 68,551 Dec. 9,398 Dec. 381,583 Inc. 871 Inc. 24,500 Totals Texas ...................................... 9,291,626 North Louisiana ................................ 3,052,260 299,729 98,460 8,713,460 2,776,050 290,448 92,535 Dec. 578,166 Dec. 276,210 Dec. 9,281 Dec. 5,925 Totals, Eleventh District. .................12,343,886 398,189 11,489,510 382,983 Dec. 854,376 Dec.15,206 SEPl'EMBER DRILLING RESULTS Completions Producers Failures FieldNorth Texas ........._ _.... 192 .. _ 62 130 62 157 Central West Texas._ 219 .... Texas Coastal ..... _._ ...... __ 70 11 59 Texas Wildcats ..... _. __ ... 46 33 13 Total Texas ...... _ .. _._ .... _ 527 _ North Louisiana ._ _ __ .__ 109 .. .. September totals, Dist.. 636 Aupst totals, Dist. ....... 706 CRUDE OIL PRICES Initial Production 9,755 36,354 21,289 449 Corsicana light....... __ .......$3.50 (38 Gravity and Above) Corsicana heavy.............. 1.75 Caddo ... _ ............................$3.60 Texas Coastal fields...... 3.00 Homer .............. _............... 3.25 All other Texas fields.... 3.50 359 76 168 33 67,847 12,740 435 201 265 80,587 103,205 441 TEXAS LOUISIANA Bull Bayou ... _................. 3.15 De Soto ..._ ..........._ _.... 3.40 ....... (Oil statistic. compiled by the Oil Weekly, Houston, Texas.) I '1 TRADE: Wholesale Trade Measured in dollar amounts, the September sales of nearly all lines of wholesale trade reporting to the Federal Reserve Bank of Dallas showed a diminished volume of trade both as compared with August, 1920, and September, 1919. Reduced prices, of course, had something to do with the showing made by groceries and dry goods, as these lines bore the brunt of the price-cutting wave which set in about the first of September. Our reports almost unanimously agree that the retailers are still restricting orders to present necessities, postponing the matter of their future needs until the probable demands and buying power of their customers take more definte form. Collections made by the wholesale trade during the month of September showed varied progress, the reports varying with different lines of merchandise and with geographical districts. On the whole, payments were slower than usual for the month, as evidenced by an unusual number of requests for extensions of account. The disturbed condition of business reflected in the reports reaching us from wholesale houses is attributed by them largely to the discouraging outlook now confronting the district's cotton producers as a result of the recent decline in the price of that staple. To meet the situation wholesale merchants have resolutely set themselves to overcome the inertia of the demand. A number of them have tried special sales and price reductions with varying degrees of success. In most instances these measures have effectively stimulated sales, while in some cases they are said to have had the opposite effect by creating the belief among buyers that further reductions were imminent. Wholesale dry goods firms report a shrinkage in sales and a heavy reduction in prices during the past month. Large stocks are generally held by wholesalers in this line, who are frank to admit that m order to turn some of the goods they purchased before prices started downward they will be compelled to absor b a loss. It is significant of t he general strengt h of their condition, h owever, that t hey seem, as a rule, determined to use replacement values if necessary instead of cost values, as a basis of their future selling prices even though it means a loss. Apparently they are both able and willing to shoulder their share of the trade's price adjustment burdens in order to hasten the arrival of a stabilized situation. In contrast with other lines of wholesale activity, the drug trade reported an increased volume of transactions for the month of September. Following a rather quiet trade during August, buying took an upward turn, and the average sales for September showed an increase of 9 per cent over August, 1920, and 21 per cent over September , 1919. Retail buying in this line manifested a spirit of increased confidence on the part of the merchants. Price trends are reported to be downward on drugs and chemicals, but on drug sundries the quotations generaUy have ruled firm and unchanged to higher. Dealers handling groceries at wholesale report that buying is slow and prices on sugar, beans, coffee and a few other staples continue to trend downward. Stocks on hand at the end of the month, contrary to conditions in most other lines of wholesale trade, were smaller than those of the precedip.i month and of the correspnding month last year. The table below contains statistics of increases and decreases in sales, prices and stocks for the month of September, as reported by our correspondent firms: SEPTEMBER, 1920, WHOLESALE TRADE, COMPARED WITH AUGUST, 1920, AND SEPTEMBER, 1919 Stocks at Selling end of mo.: Prices: Sales: Compared with: Dec. 2.9% Dec. 3 % Groceries ................................................August, 1920 ............................ Dec. 1.1% Dec. 9.2% Dec. 3 % September, 1919 ...................... Dec. 10.7% Inc. 2.4% Same Drugs ...................................................... August, 1920 ............................Inc. 9.3% Inc. 20 % Inc. 12.7% September, 1919 ...................... Inc. 21.3% Inc. 18 % Dec. 10 % Dry Goods .............................................. August, 1920 ............................ Dec. 22.2% Inc. 57.3% Dec. 15 % September, 1919 ...................... Dec. 1.2% Inc. 3.7% Same Hardware ................................................ August, 1920 ............................ Dec. 2.7% Inc. 16.3% Inc. 7.3% September, 1919 ...................... Dec. 20 % Dec. 2 % Same Auto Supplies ........................................ August, 1920 ............................ Dec. 3.6% Inc. 33 % Inc. 9 % September, 1919 ...................... Dec. 11.2% A more vigorous activity in sales and a more satisfactory progress in collections were the outstanding features of retail trade during September, as reflected in the reports received by the Federal Reserve Bank of Dallas from sixteen representative department stores located in the cities of Dallas, Fort Worth, Retail Trade Houston, San Antonio, Austin and EI Paso. Scattring reports also obtained from leading retail establishments other than department stores are remarkable for the similarity of their figures to those of reporting department stores, thus demonstrating the reliability of the latter as an index to general retail trade conditions. 1 Net sales during September showed, for all report.. ing firms. an average increase of 12.4 per cent over sales for the corresponding month last year, and an increase of 29.3 per cent over August, 1920. The actual increase in the volume of transactions was even greater than is indicated by these percentages (which are based on sales measured in terms of sell. ing prices) since each $1.00 of sales in September represented, on the average, a larger quantity of merchandise than was purchasable for $1 in August, 1920, or in September, 1919, due to the sharply reduced prices prevailing during the past month, which have been a conspicuous feature of department store advertising for the past six weeks. The percentage of customers' accounts collected during the month was 42.2% as compared with 37.8% for the month of August. While stocks on hand on September 30th were 52 per cent larger than a year ago, the ratio of average stocks to average monthly sales since July 1st shows a fairly satisfactory rate of turnover, and it should be remembered that a year ago stocks were greatly depleted by the interruptions of deliveries resulting from strikes and other difficulties affecting transportation. The improved supply situation, which is perhaps largely responsible for the tendency among retailers to buy on a smaller scale and with greater frequency than was their custom when merchandise was more difficult to procure, is enabling the distributer to pursue, with increased confidence, the conservative course in buying which he has been endeavoring to follow for several months. BUSINESS OF DEPARTMENT STORES September, 1920 Net Sales: Increase September, 1920. compared with September. 1919.. 12.4% September, 1920, compared with August, 1920.......... 29.3% July, August and September. 1920, compared with same period last year................................................ 20.9% Stocks at end of September. 1920: Compared with same month, 1919............................. ~.. 62.8% 6.6% Compared with stocks at end of August, 1920.......... Ratio of average stocks at end of each month, from July 1st to September 30th. to average monthly sales over same period.................................................... 523.9% Ratio of outstanding orders on September 30, 1920. to total purchases 1919 .................................................... 10 % Ratio of September collections to total accounts receivable on September 1st............................................ 42.2% TRANSPORTATION: Eleventh district carriers have made good progress during the past month in the matter of expediting the handling and increasing the supply of freight cars. Systematic efforts, initiated some months ago, to induce consignees to unload cars promptly are now bearing fruit, and during most of the month of Septemebr a number of lines were able to handle all freight offered for shipment and to complete deliveries on schedule time. The rapid movement of the wheat crop by the railways of the district is a striking illustration of the recent improvement in traffic conditions generally. This improvement is likewise reflected in the increasing volume of merchandise and livestock now being handled by Southwestern roads. At present the most serious feature of the district's transportation problem is the fuel shortage in West Texas, where carriers have been unable to supply the requisite number of coal cars to provide that section with coal for the coming winter. To meet this situation the Interstate Commerce Commission has been petitioned to apportion a sufficient supply of rolling stock to the lines operating between the Colorado mines and West Texas points to insure the delivery of an adequate fuel supply within the next 60 days. This order, if issued, should relieve what appears to be a coal shortage of serious proportions. affecting a large area of the western section of the district. FINANCIAL: Operations of the Federal Reserve Bank. A fur· ther increase of $9,352,280.12 occurred during September in the indebtedness of Eleventh District banks to the Federal Reserve Bank of Dallas. Member bank collateral notes held on September 30th amounted to $18,936,735.74; rediscounts totaled $59,893,802.28; bankers acceptances, $662,500.00; outstanding rediscounts with other Federal Reserve banks, $38,036,352.27, making total outstanding paper on September 30th, $117,529,390.29, as against the August 31st total of $108,117,110.17. The total of outstanding Federal Reserve notes on September 30th was $92,577.145, which was $9,251,550 more than the total for August 31st. Member bank reserve deposits showed an increase of $5.103,236.76 during September, the total at the end of the month being $53,847,748.68. The distribution by maturities of paper held under discount on September 30th was as follows: Due within 15 days .................................. $36,805,079.36 Due 16 to 30 days...................................... 9,065,849.94 Due 31 to 60 days ...................................... 19,499,265.92 Due 61 to 90 days ...................................... 10.278.807.44 Due after 90 days...................................... 3.844,035.34 TotaL ................................................. $79,493.038.02 was a loan expansion of $14,112,000, and a gain in deposits of $1,375,000. At the end of September the ratio of loans to deposits was 126%, as compared with 108% a year ago. Further details of condition statistics are shown in the appended table. Condition of Member Banks in Reserve Cities. During the period from August 27th to October 1st 51 member banks in the reserve cities increased their loans $3,587,000, while at the same time their net demand deposits showed a net gain of $2,704,000. For the corresponding period last year there CONDITION STATISTICS OF MEMBER BANKS IN SELECTED CITIES October 1, 1920 Number of reporting banks................................................... . U. S. securities owned ............................................................. . Loans secured by U. S. war obligations............................. . All other loans and investments ............................................ Net demand deposits ................................................................ Reserve with Federal Reserve Bank .................................... Bills payable with Federal Reserve Bank .... _•.._................. Bank Clearings A gain of 19 per cent was shown by the combined bank clearings of eleven cities for the month of September over the clearings for the previous month. August 27,1920 October 3, 1919 51 48,629,000 8,457,000 277,733,000 227,306,000 23,762,000 50,754,000 51 49,973,000 8,496,000 274,107,000 224,602,000 25,631,000 43,563,000 43 75,967,000 6,692,000 204,849,000 195,719,000 21,615,000 32,408,000 A healthy increase, amounting to 20.4 per cent was also recorded over the total for month of September, 1919. BANK CLEARINGS e September, 1920 August, 1920 %Inc or September, %Inc. or --Nine months-- %Inc. or Dec. 1919 Dec. 1919 1920 Dec. Austin _..._....._ ........$ 8,440,094 6,698.702 + Beaumont ._.__........ 6,014314 6,003,126 + Dallas •...... __ ._.. _.... 149,931,451 123,091,965 + EI Pa 0 _ . .. __•.••.. _ ... 27,326,010 28,000,000 Fort Worth 80,810,884 84,865476 Galveston ........... __ . 39,500,300 27,911,256 + HOllston _... __......... 163,324,075 121,162,794 + San Antonio ...__ •... 39,076,482 33,661,878 + Shreveport ... _....._.. 18220,629 18,229,477 Waco .. _ .._... _....... 17,125,000 10,302,295 + Wichita Falls ......... 15,462,512 16,764,291 Total ........................ 565,231,751 474,686,260 + ~ - 66.2 1.9 186,488,243 -66.0 6,220,227 +35.7 62,782,739 51,567,935 +12.6 5,371,479 +12.0 68,055,396 143,617,151 + 4.4 1,396,116,124 1,043,127,010 +33.8 25,157,001 + 8.6 260,218,046 217,455,104 +19.7 604,533,292 +27.0 70,790,006 +14.2 767,837,180 250,370,435 +10.2 37,569,287 + 5.1 275,973,307 101,213,740 +61.4 1,095,723,488 675,851,777 +62.1 31,870,056 +22.6 319,914,868 264,079,170 +21.1 15,578,086 +17.0 195,199,2"74 111,857,961 +74.5 14,760,000 +16.0 125,936,838 92,626,472 +36.0 16,969,514 - 8.9 146,297,750 +26.8 185,486,874 19.1 469,116,547 48.2 .2 21.8 2.4 4.7 41.5 34.8 16.1 4,743,244,134 3,644,255,149 September, 1920 +20.5 August, September, 1920 1919 FAILURES Number of failures reported in the Eleventh Federal Reserve District ...... _.... 36 Liabilities involved .......................................................................................................... $864,924 33 $411,027 +30.2 7 $48,883 BUILDING PERMITS September ---1919-----1920'--- Valuation Inc. or Dec. No. Valuation No. Austin ............................................................ 15 $ 25,910 15 $ 15,340 -40.8 Beaumont ........................................................ 100 157,000 503 220,819 +40.6 Dallas ................................................................ 129 1,076,118 224 1,065,997 .9 El Paso .............................................................. 95 206,547 104 378,137 +83.1 Ft. Worth .......................................................... 184 2,115,187 140 322,734 -84.7 Galveston ......................................... _............... 423 92,191 355 46,390 -49.7 Houston ............................................................ 409 864,255 110 347,970 -59.7 San Antonio ...................................................... 146 549,048 231 386,130 -29.7 Shreveport ........................................................ 152 306,636 182 501,324 +63.5 ------~------------------------~~ Total .................................................................... 1653 $5,392,892 1864 $3,284,841 -39.1 August totals ......................................................................................................... 1548 $2,950,694 +11.1 POSTAL RECEIPTS Austin ........................•...$ Beaumont ...................•.... Dallas ......... ,...............•.... EI Paso ....................... _.... Ft. Worth ................... _.... Galveston ................... _.... Houston ._-----_.................... San Antonio ...............•.... Shreveport ................. _.... Waco .. _............. __._._ ... Wichita Falls ...........•.... 51,862 36,581 490,807 102,006 217,191 51,240 288,588 200,680 72,704 53,136 50,269 Total ...................... $1,615,064 Nine months 1920 Ine or Dee. Inc or Dec. U119 60,313 42,130 552,024 106,474 281,286 51,135 316,463 206,765 88,957 59,980 54,455 +16.3 +15.7 +12.5 +4.4 +29.5 - .2 + 9.7 + 3.0 +22.4 +12.9 + 8.3 $ 180,372 128,701 1,559,424 306,694 659,935 160,708 859,392 631,632 238,754 182,690 152,209 $ 181,904 130,215 1,718,172 331,952 880,998 154,677 986,172 627,678 280,735 180,312 183,095 + .8 + 1.2 +10.2 + 8.2 +33.5 - 3.8 +14.8 - .6 +17.6 - .6 +20.3 $1,819,982 +12.7 $5,060,513 $5,655,'09 +11.8 Third Quarter 1920 1919 $ e I
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