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Federal Reserve
Banl~
of Dallas
Thi s summary ot agricultural and commercial conditions In
th e E le v enth F ederal Reserve District Is Iss u ed In the b ell e t that
a concis e revi ew ot tra d e will be of Int er est to our m ember
banks. bu s in ess m en ot th e district a nd fri e nds of the F ed eral
Rese rv e Syst em .
The Information g ive n Is obtain ed by th e Federal R es erve
Ag e n t fr om va rious sources throughout th e district, and in our
op inion t h e sa me is r e liable.
T hose d es iring the lette r furni s hed th em r egularly wlU r ec eive It without charge upon application.
DALLAS, OCTOBER, 1919.
'l'he rece nt g ulf sto rm w hich wro ugh t deat h and
destru cti on to th e Co rpu s Christi sectio n has ba dl y
d:el11 oraliz ed b usin ess th ere. It is im pos~ i b le to estl~1a t e t he property dam age, b ut it 'w ill run in to
mtlli o ns of doll ars. Crops have bee n destroyed and
th e si t uat ion ge nerally is extremely bad .
R eavy ra ins have falkn oyer a g reat er pa rt of th e
di strict w it hin th e pas t week and w hil e of mu ch
benefit to t he ra nge, have bad ly damagcd g ro win gcrops .
R enewed act iviti es a re not ed in m any lin es as th e
SUmmer pa ses and the fa ll sea on opens. As ide:
fr om thi s increase in bu sin ess in cid ent to th e season al tra ns it ion th ere h ave bee n no out standin g
f~atures in th e comm ercial situ ati on in ce o ur preVIOUS let te r.
'l'h e liqui dat io n fr om th e move m ent o f cotton ha s
co ntributed t o easier finan cial co nd it io ns and w e
may ·expect eve n more s ub stantial improvem ent as
th e fall mont hs adv a nce.
\~~il c a n at mosph ere o f co nservat is m is rath er
n.ottceablc in bu sin ess, on acco un t of th e un ce rtaintl e~ o f th e fut ure ca used by th e labor sit uation, agit~ tton over t he " hi g h cos t of li vin g" a nd o th er
dI sturbin g in flu ences, bas ic co nditi ons are so und ,
and at prese nt th ere is noth ing t o warrant any
alar m over th e future.
It is imp oss ibl e at thi s tim e to g ive a ny definit e
or re liabl e statem ent w it h
AGRICULTURE
referenc e to the prese nt cot to n crop .
II~ general, it is not likely t hat the crop in T exa s
WhJ!1 ~u ch ex ceed that o f last yea r, and it poss ible
t at It may fall- sli ghtl y below las t yea r's crop.
~owever, with idea l conditi ons, fair w ea th er and a
,pe frost , it is possible, thou g h not likely, that
exas might make 3,000,000 to 3,250,000 bales o f
Cotton.
A report issued under Government autho rity esti mated t he Texas cotton crop at a conditio n of 61%
of norm al on August 25th. Undoubted ly, in m any
sec ti ons t here has been a heavy Joss and det eri orat ion s in ce that time, though in the \ Ves tern and
No rt hwestern parts of th e state there has no t bee n
any co nside rable deterioration, whi le over g rea t
a reas of the state, the crop has done very w ell.
Th e damage by insects has been very heavy, especiall y in co unties of Central, outh and So utheast
T exas. U nd oubtedly, the crop all over South T exas is goin g to be vcry short. There has, t oo, in r ece nt weeks been great loss in the b lack waxy belt
of No rt h 'rexa ', due to the boll-weevil an d a rm y
wo rm. 'l'he crop is everywhere late, and th ere is
co nside rab le shortage of labor , and w here obtaina bl e, p ri ces be ing pa id are abno r mall y hi g h.
'fh e crop is ve ry spotted, and the ulti mate res ul t
will depend very m uch u pon seasonal conditions
from this t im e on.
'liVe ha ye made the heaviest a nd best co rn crop e\fcr
ra ised in t he state, and for the firs t ti me w it hin
reco llectio n the price of corn on the exchange il1
Chi cago has been seriously affected by the heavy
rece ip ts of co rn from Texas.
The g rai n crop was also large beyond p receden t,
tho ug h, d ue to heavy rains and the sho rtage orlabor, a considerab le port ion of th e wheat w as
damaged , a sma ll portion of it being entirely dest royed.
The crop of other grains was good, whi le t he hay
a nd forage crop pretty well over t he state is th,
best in rece nt years.
'rhe r ice crop is late and has suffered fru m untavora bl e weat her co nditions. T he acreage in Texas and
Loui sia na is heav ier than it was last seaso n a nd the
present co ndition of the cro p, accorrtin g t o government es timat es, is a bove norm a l. Last y'ear wh en
prices were
controlled by th e gove rnm ent th e
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
average paid for rough rice was $7.25 per barrel,
whereas, the same prQduction is selling for $10.50
per barrel. These high prices were brought about
by th·e heavy inquiry for export during the latter
part of last season. It is predicted that prices will
continue higher than those paid last year for both
rough and clean rice, due to the high price of the
foreign product.
The demand for funds continues very heavy. Deposits are also gradually increasing, as
BANKING shown by the reports of condition rendered on the call of September 12th.
This is attributable to the marketing of the season's
crops and the distribution of funds from the oil industry. With the continued advance in prices and
the necessity for more capital for operating, member banks necessarily are forced to increase their
regular lines to customers, and are at the same tim'e
enjoying increased deposits. The heavy deposits indicated by the reports of September 12th, reflect the
general prosperous conditions obtaining in this district.
The eff'e ct of the drought, however, and the slow
liquidation of cattle paper, are still reflected by the
condition of banks in the West and Southwest sections, and many of them are in rather a badly ext~nded condition. ~urther liquidation of war obligatIOns seems essential before the financial situation
in t.hi s district can return to anything like a normal
baSIS.
The various offerings of Treasury certificates have
been largely over-subscribed in this district, and the
member banks continue to respond liberally to the
government's requirements.
~karing at the principal cities in August show all
I\1crease of 31.1 % over the same month of 19] 8.
Detailed figures were:
]9]8
12,972,847
5,434.897
79.728.613
20.894.249
49.701.921
21.644.708
79.257.595
8.992.641
12.985.002
]919
$ 5.903.971
5.500.000
117.523.111
2.3.843.875
75.982,596
42.54.3.100
88,560,701
12.775.278
9.810,000
TotaL ............. $291.612.473
.
$382.442.632
Austin ..........................$
Beaumont
Dallas ........ ::::::::::::::::::
EI Paso ........................
Fort Worth ........ .. ......
Galveston ..................
H ollston ....................
Sh reveport ................
Waco ..........................
Inc. or
Dec.
-54.5
1.1
47.4
14.1
52.9
96.5
11.7
42.0
-24.4
31.1
-Decrease
.~ C?~11.panson of the principal items of ass'e ts an,d
itabllities on the books of member banks in the reserve cities, and Shre\-eport, on the dates shown
below, proy'e s interesting:
Number of member banks .................... 43
41
43
(000 omitted)
.
.
July II Aug', 8 Sept. 12
U. S. Bonds to secure clrculatlOn .... $18.723 $18727 $18923
Other U. S, Bonds. including
,.
U Lib~rty Bonds .............................. 17.513 18.418 20320
. S. V Ict?ry Notes............ .................. 4.231
4.289
5:203
U. S, CertIficates of Indebtedness .... 23.600 31.8.35 36.146
Total U. S. Securities ........................ $64.067 $73.269 $80.592
Loans secured by U. S. Bond s. etc..... 6.901
All other loans and investm en ts ...... 179.339
Reserve balances with F. R. Bank .... 21.395
Cash in vault... ......................................... 10.582
Net demand deposits .......................... 179.818
Time deposits ........................................ 30.772
Government deposits .......................... 6.015
6.984
188.041
21.630
10.299
191,134
30.431
14.554
7.779
163.636
21.396
10.506
192,565
30.660
24.766
Building permits, issued at the principal cities in
August, as shown by the table below,
BUILDING continue td reflect an improvement in
construction activities; on every hand,
but more especially in the larger cities of the dist~ict, much building is'. under way and yet, at the
fisk of repetition, the situation is far from normal.
The situaton is unfavorably affected by transportation, and inability of dealers to secure sllfficien~
material to take care of the demand; for thi:.; reason
the outlook is uncertain and yet the consensus of
opinion is that the industry is due for a general
revival and present activity is only a forerunner of
what the future holds:
1918
No. Valuation.
Austin ........................ 5 $ 4.645
BeaulTIon t ................ 75
99,836
Dallas ............ ...... :..... 49 248730
EI Paso .................... 67
39: 135
Fort W orth ............ 83
206.480
Galveston
............ 376
16.036
Houston .... ............. .221
278.496
Shreveport .......... .... 63
34.450
TotaL ................. 939 $927.808
No,
19
88
174
73
211
485
405
137
1919
Inc. or
Valuation.
Dec.
251.2
$ 16.317
-22,9
76.913
876,1
2.427.865
86,1
72.866
3.414.190 1.553.5
263.9
58.370
744.689
167.3
825.9
318.980
1.592 $7.130.190
668.4
-D ecrease
The volume of exports through the Galveston clistrict is steadily increasing. Present
EXPORTS
space is adequate and, in fact on account of the late cotton movement
facilities exce-ed the demand. As the result. stea111~
ers are in port ~dle waiting for cotton previously
booked, to be deilvered, and it is estimated that this
condition will prevail for the next two ·weeks.
~fter that time, as the crop matures throughout
1 exas and Oklahoma, by October] st it will be
handIed in large volume.
'
The supply o~ wheat for export, to British and
~rench por~s ;s larger than the tonnage so far prov~ded,. but It IS 'expecte~ ample space will be provld~d In .the n'e ar future, and, as the embargo against
gral.n ~hlpment~ ~o Galveston has recently been lifted, It IS not antiCIpated that the export grain movement will be further interrupted.
Exports in~o Mexico are heavy, and were it 110t for
transportatIOn problems, would be at record volume .
Reports from Laredo are that the Mexican GovernIll:nt is unable ~o furnish necessary facilities, and
shipments a l\~ bell1g made by privately owned roads.
'fhe peco rd of busin ess susp(,l1sion s in the district
for August continues to make a
FAILURES
very favorable showing, as compared with the same month to f
1918. The number of failure s, and liabiliti es, as report-cd to Dun's Revi ew were:
No.
46
19 18
1919
Liabilities
N o.
Liahi ~ ities
$298,340
30
$249,603
Decrea se in numb er- 16
Decrease in liabiliti es-$48,737
Range co nditi ons have been greatly im proved by
the heavy and general rains of the
LIVESTOCK past ten days. Up to that time
practically all of the range country
was need ing moi sture, but more especially the Pecos Valley. The recent rain s insure a good supply
of water and pasturage for the ea rly winter months.
SI~ip111ents during the past month have been only
faIrly heavy and prices for several classes have
shown a decline. The prices of feed are also lower ,
and on the whole the outlook for the fall and winter
in th e li vestock industry is favorable.
Comparative receipts at Fort \ North from September
1st to 18th and for the period January 1, to
<:'
0ep temb er 18, 1919, were as }ollows :
Receipts from January 1st:
C
.
1919
C~~~lccs ...................................... $7 12,15 1
Ho
.................................... 158,162
She~s) ................................ ........ 4~9 , 720
11 I ......... ............................ .L1,007
orscs and mul es ................ 32,184
1918
$967,902
182.842
533,267
265.690
45,507
"'Ga in
Receipts for Sep tcmb er (1st to 18th) :
1919
1918
g~~~~es ............ .......................... $ 44,559
$ 96,0 II
Ho
................ .................... 25,959
30,719
She~s ........................................ 13,175
26,P.96
H p ...................................... 15,016
15,471
orses and mul es................
3,859
7,895
Loss
$255,751
26,680
43,547
*55,317
13,323
Loss
$ 51,542
4,756
13,72 1
455
4,036
1' here ha s been but sli g ht change in th e lumber situation in th e past thirty days; prices
LUMBER continue to advance, with heavy demand and so mew hat improved labor
co.nditions. Some mill s advise that they look for
P:lces to be stabilized at present levels; others ad~r ISC that the situation, as to labor and transportation
IS s~ lIncertain that the pri ces will hardly decline
anytlmc soon.
rn. manufacturin g lines the. Volul~l e of orders is
al.ger than a year ago, WIth eV Id ence of lower
Prt ces for raw material and inadequate labor supply.
~\h e demand for hi g her priced products continues
f eavy and the labor situati on is still very unsatis-
actory. Manufacturers are confronted with a labor
~calc twice as high as a year ago, which they report
~~ really creat,ing ~ore .di ssat.isfacti01? and idleness
lan any prevIOus tIme In their expenence.
The development in the oil fields of Burkburnett
and Ranger continues to increase and new
OIL wells are being brought in from time to time.
As t he result the production is in excess of th~
pipe line capacity and this has caused a decline in
pri ces. Prices offered by t he smaller companies
have ranged from $1.25 to $1.75 per barrel and
those offered by the larger companies, around $2.25
pe r barrel.
Production in the Burkburnett field is conservatively estimated at 150,000 barrels per day, of which it
is estimated about 95,000 barrels per day is being
marketed.
The scarcity of material, such as pipe casing and
ot her machinery necessary in the production has a
tendency to slow up the development.
The labor situation is ampl·e, to a g reat extent at·
tributab le to the fact that drilling operations have
fallen off in the last thirty days.
]{ etail trade, g ive n an impet us by cooler weather
a nd the opening of schools,
RETAIL TRADE continues to be very satisfactory and the outlook for fall
and winter is quite encouraging. The volume of
cash sales shows an increase and there is a heavy
demand for hi gh priced m-crchandise. Dealers report that never in their experience have th ey seen
the public mo r'e anxious to obtain the bett~r grade
of merchandi se. The question of price is secondary.
Among t he principal lin es th e summary of report s
is as follows:
Drugs: Volume very heavy ; cash sales increasing;
hi g her priced articles in increasing demand; collecti ons good.
Dry Goods: Measured in dollars the volume is
ahead of last year, cash sales heavy and an increasing demand for hi g her priced goods; coll ections
goo d.
Furniture: Volume of business satisfactory, good
dcmand for hi g her priced articles; outlook for fall
very good. Dealers handi cap ped on account of inab ility to sec ure satisfactory stocks.
G~oceries: Volume heavy, an increase expected
WIth ea rly fall months. Some dealers report business affected .by agitation ov~r "high cost of living"
and expectatIOn of lower pnces; colJ.ections g00d.
Hardware: The volume heavy, cash sales fairly
heH"y, demand for better g rade of material increasing; outlook for fall very sati sfactory.
Men's Clothing: Volume heavy' cash sales heavy'
quality is first consideration.
'
,
~omen's Clothing:
Volum e very heavy; increase
cash sales and an increasing demand for higher
priced merchandi se.
111
Th e volume of wholesale trade being transacted is
very heavy, with an increase in
WHOLESALE cash sales, good collections and,
TRADE
for the most part, an increasing
demand for higher priced goods.
Among the more important lines, replies from correspo nd ents indicate the following:
Automobile Supplies: Heavy volume, prices receding som ew hat ; with collections normal.
Drugs: . Heavy volume, increasing cash sales and
an increasing demand for high priced g oods.
Dry Goods: Heavy volume, advancing prices,
good colle-ctions and increasing demand for hi g h
priced merchandise.
Furniture: Heavy demand, trend of prices upward,
good collections and increasing call for high priced
goods. Inability to secure ship ments from factories is a ffectin g trade.
Groceries: Heavy volume, trend of prices slightly
downward, collections g'ood and an increasing dema nd for high er priced goods. Outlook for fall
very favorabl e.
Hardware: Volume fair to heavy, slight tendency
toward increasi ng prices, collections fair to good
a nd a growing d emand for higher priced merchan di se. Outlook for fall favorabl·e.
STATEMENT OF CONDITION OF THE
FEDERAL RESERVE BANK OF DALLAS
A.t the close of Business SEPTEMBER 26, 1919
RESOURCES
Gold
Gold
Gold
Gold
Gold
coin and certificates in vault ..................................................................................................................................... . $ 6,878,885.00
5,210,253.77
settlemen t fund ............................................................................................................................................................. .
4,114,950.00
redemption fund .. :............................................................. ........................................................................................... .
2,063,667.98
held with for eign agencies .................................................. .................................................................................... ..
with Agent for retirement of F. R. Notes ........................................................................................................ .. 16,831,245.00
Total ................................................................................................................................................ _................................... $35,099,001.75
Legal tender notes, silver, etc.............................................................................................................................................
1,826,600.30
Other cash and cash items........ ...........................................................................................................................................
3,115,774.64
Total ._.................................................................................................................................................................................. $40,041,376.69
5% redemption fund-F. R. Bank N otes..........................................................................................................................
253,200.00
Bills discounted-members .................................................................................................................................................. 55,701,719.99
Bills bought in open market....... .........................................................................................................................................
507,160.00
Total Bills on Hand ........................................................................................................................................,............... $56,208,879.99
Investments- U. S. Bonds..................................................................................................................................................
3,966,000.00
U. S. Certificates of inclebtedness......................................................................................................................................
7,200,000.00
Total earning assets ..................................................................................................................................................... . $67,374,879.99
5,805,238.61
Federal Reserve Banks-Transfers Bought -(n et) ................................................................................................ ..
Checks and drafts in process of collection .................................................................................................................... .. 16,601,792.74
2,503,276.1 6
Due from other F. R. Banks ............................................................................................................................................ ..
All other resources ................................................................................................................................................................. .
921,926.90
Total Resources ............................................................................................................................................................ $133,501,691.09
LIABILITIES
Capital paid in ................................ ........................................................................................................................................ . $ 3,320,900.00
2,028,868.33
Surplus _................................................................................................................................................................................... ..
2,532,688.74
Government deposits ........................................................................................................................................................... .
Due to member banks' reserve account.. .......................................................................................................................... .. 44,160,287.73
Deferred credits, account checks and drafts in process of collection .......................................................... _...... .. 17,262,365.87
9,097,500.00
..
51,992,260.00
Foreign Government credi ts ............................................................................................................................................ ..
1,958,945.46
All otller liabilities ................ ................................................................................................................................................ ..
1,147,874.96
f.~d~~a?R~~e~v~tNo~~~i~e~i~7ul~·i;~ ~~.I.~~~::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::.:::::::::::::::::::::::
Total Liabilities ............................................................................................................................................................ $133,501,691 .09
Redi scounts with other Federal Reserve Banks.......................................................................................................... 18,000,000.00
OFFICERS
W. F . RAMSEY,
R. L. VAN ZANDT,
Federal Reserve Agent.
Governor.
LYNN P. TALLEY,
Deputy Governor-Cashier.
r.:: HARLES C. HALL,
PAUL G. TAYLOR,
R. BUCKNER COLEMAN .
.~sst. Federal Reserve Agent.
Assistant Cashier.
Assistant Cashier.
FRED HARRIS,
DWIGHT P. REO ROAN,
Assistant Cashier.
Assistant Cashier.
@FedFRASER