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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 R.s.rVe Agent
LYNN P . TALLEY. Chairman and Federal Reserve Agent
(Compiled August 15. ICJ21)
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VolumeS, NO. 7
Dallas, T exa5, September
I.
1923
THIS COPY RHLHASBl> POR PUBLICATION IN MORNING PAPRRS
AUG.
31
DISTRICT' SUMMARY
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§
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THE SITUATION AT A GLANCE
Eleventh Federal Reserve District
E
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I~ lt~::;~~:~k~~~ss:!e~~;;~b;~··ba~"at·~~d"
Bank debits Lo individual accounts
~
==_=i-_-----=
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nt 13 cities} _.. " __ "._._"
of ·~~~t~~:::::::~
1 eserve Bank 1'I1,io at nd of mon h ... _._ ........................... __ .....
Huilding
permiL
vuluations
at larger
- -.....
-----.•.
ommercial
failures
(number)
....._ centers
_______ ._____....______
__ .___________
.. _..'--'__ ._
Commercial failures (liabilities) .. __ ._. _____ ._______ .___________ .. ______ . _____ ._ __
Oil production (barrels) .. -----.--- ... --.-- .... ---- ..... -_. __ .__ . _____________ ..... ___ ___ _
Lumber orders at pine mills (per cent of normal production)
J I
$520:6:4.000
..........·4-4;757.058 ...
46.3%
5,029,604
81
2,576,000
13,306,105
90%
June
$569,142,000
r
DeC.
-··----····33;931;450.... Pn~~'
47%
6,511,509
97
1,293,018
11,911,230
76%
Dec.
Dec.
Dec.
Inc.
Inc.
Inc.
E
nc
or D
.
!
I
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e:.5 %
.7 point ~
22.8%
16.5% ~=i____=99.2%
11.7%
14 points !
~
i
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The sharp deterioration in the condition of the
Financial conditions reflected the influences of
growing cotton crop, caused by the dry weather, seasonal factors. The Federal Reserve Bank's loans
excessive temperatures, and hot winds, was the out- to member banks showed an expansion of approxistanding development in the agricultural and busi- mately $12,000,000 between June 1st and August
ness situation in the Eleventh District during the 15th, as a result of the increased demand for bank
past thirty days. While a month ago prospects credit to finance business and agricultural operapointed toward a crop equivalent to the large pro- tions.
duction figure of 1920, the present outlook is indicaWholesale trade reflected a satisfactory distributive of a greatly reduced yield. Considerable shedtion during July, four reporting lines showing larger
ding has been reported in all sections of the district,
sales than the previous month, and all lines reporting
and the premature opening of cotton is reflected in
a substantially larger distribution than in July a year
the early ginnings, which are heavier than usual.
ago; Trade leaders are generally optimistic over the
The ravages of the insects, which gave evidence of
outlook for fall business, and are confident that a
much destruction earlier in the season, have been
more normal distribution will be obtained. While
checked by the weather conditions and present indiretail sales reflected a sharp reaction from the prevications are that the damage from this source will
ous month, this development was expected as a slacknot be excessive.
ening in sales always occurs during the summer
The recovery of the cotton market since the issumonths.
ance of the Government's July 25th condition report
has offset to some extent the effects of the heat and
Progressive reduction in the volume of debits to indrouth, and has served to restore the confidence of dividual accounts at the principal cities of the disthe producers in the outcome of the present crop.
trict has occurred during the past four months, and
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
2
MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS
the volume of debits is now closely approximating
those during 1921 and 1922.
Building operations, which have been exceptionally active during the present year, were on a greatly
reduced scale during July. The valuation of building
permits issued at eleven cities of the district was
22.8 per cent smaller than June and 24.1 per cent
smaller than July a year ago. However, lumber
orders at pine mills rose 14 points during July, and
production was the largest reported since January.
CROP CONDITIONS
The dry weather and high temperatures, together
with the hot winds, have been detrimental to the
best growth of the cotton plant, and have caused
considerable deterioration during the past month.
The Department of Agriculture in its July 25th condition report estimated the Texas crop at 4,075,000
bales, but it is generally believed that the crop has
been materially reduced since that time. It should
be remembered that every month this year since
April has failed to record normal precipitation, and
the lack of sufficient rainfall in the early days of
August, coupled with high temperatures and hot
winds, has caused excessive shedding and premature
opening.
The cotton plant (except in scattered localities
where the drouth has been most severe, and in some
of the late planted fields) has made a good growth
over most sections of the state, and indications point
toward a more uniform yield in the state's production than was the case a year ago, when the crop was
very spotted.
While insects of one kind or another have been
active in practically every section of the state, and
the loss from this source is still problematical, the
dry, hot weather has held in check ravages of these
insects and it is now generally believed that the damage will not be excessive.
Picking and ginning have been active in South
Texas since late June. The yield is reported to be
good and field operations have been carried on under
favorable weather conditions. In the east, north,
and central sections of the state cotton has begun
to move freely, and the bolls are opening rapidly.
While the actual yield of the wheat crop proved
to be approximately 1,500,000 bushels less than the
estimated production a month ago, a good yield was
obtained, the production estimate being placed at
16,370,000 bushels as compared to 9,992,000 bushels
harvested last year. The yield per acre on this year's
crop averaged 10.5 bushels, as compared to 8 bushels
last year. The quality of the wheat marketed is reported to be grading higher than usual, No.2 and
above representing four-fifths of the crop.
The outcome of the oat crop shows a production
of 51,225,000 bushels, which is 17,760,000 bushels
more than was harvested last year.
The latest reports on the Louisiana rice crop indicate a reduction in the state's yield of approximately
3,600,000 bushels, as compared to last year's production. In Texas, however, the condition figure on
August 1st was reported to be 87 per cent of normal
as against 78 per cent on that date last year, and
while the crop is generally late, it is well watered and
growing sa tisfactoriIy.
According to the August 1st report, the Texas corn
crop will show a material reduction from last year's
yield. The forecast for this year's crop is estimated
at 87,660,000 bushels as compared to 114,580,000
bushels last season. While a reduction in the acreage planted to corn is partly responsible for the decreased production, the average yield is estimated at
18 bushels per acre as compared to 20 bushels per
acre last year.
While the condition of the major crops in New
Mexico showed a decline during the past month, the
estimated production of these crops will show a considerable gain over last year's yield.
Despite the substantially larger
amount of cotton ginned in Texas
from the 1922 crop as compared to
the 1921 crop, the receipts and exports at the port of
Galveston reflected a falling off during the past season. Receipts at Galveston for the past twelve
months, August 1, 1922, to July 31, 1923, were 192,098 bales less than those for the season 1921-1922,
and exports declined 323,986 bales. The exports
from all United States ports for the season just
closed amounted to 4,822,589 bales as compared to
6,184,094 bales during the previous season, reflecting
the lessened foreign demand which was evident during the past year.
Cotton
Movements
Stocks on hand both at Galveston and at all United
States ports were the lowest recorded in several
years. Stocks at Galveston on July 31st this year
amounted to 18,671 bales, as compared to 64,735 on
July 31, 1922, and stocks at all United States ports
s
MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS
amounted to 183,791 on July 31, 1923, as compared
to 446,929 on July 31, 1922.
Movements
and Prices
The receipts of cattle and calves at
the Fort Worth market during July
exceeded the heavy June movements
and reached the highest total for any month of the
present year. The supply of cattle was the most
liberal offered in any July since 1919. The movement of sheep not only showed a large gain over the
previous month, but was the heaviest ever recorded
in July. Hogs, however, were not so plentiful, the
supply being about the same as during the previous
month.
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COTTON MOVEMENTS THROUGH THE PORT OF ~
GALVESTON
§
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July
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July
11122
AU K. In til JUly
'I'hi3
SeR-~O n
a1..t =
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Lalit
SellSon
§
27,352
79,703 2, 02, 79 2,594,977 E
60,809 1.14,620 2,4 8, 432,772,929 §
Locks, .July 31st.... •........... .. _............
1 67l
64735 §
' ('m;" l'eccipts ....._.
!
~ Exports _._..........
~
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§ SEASON'S RECEIPTS, EXPORTS, AND STOCKS
~
AT ALL UNITED STATES PORTS
Under the pressure of heavy receipts cattle
and
calf values suffered a steady decline throughout
This Season Last Season
Receipts since Aug. 1, 1922....
5827 306
6242839 § the month. Fed steers brought a top price of $9 .15
during the second week, but the month closed with
the best bringing around $8.15 and the bulk going
Exp,",,,
at $4.00 to $6.00. Good calves sold as high as $7.75
early in July, but by the end of the month the desirable kind ranged from $6.25 to $6.75. Early in
the month choice wethers reached a top price at
$7.60, and lambs at $14.00, but after a series of de~ IUUUIUUUUJljju U""jjIIIIllUUllmluullnunllulltllu I IIUlluII Ulul ll l!illtlIIU UIIIllIllIII IlIl IIIIUIlIIUUU 1 lIlIlIli I IIlIll11I, rnu lllun;
clines the month closed with a top price of $6.75
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§
GALVESTON STOCK STATEMENT
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E hogs were at all times below the demand and strong
competition was evident among buyers with the reFor Great Britain................................
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sult
that prices were well maintained.
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For other fOl'eign ports..... ...............
For coastwise ports..... ...... .................
In compresses... ........... ............... .........
2,950.
950
15,221
!
Total _...................... _....... _...... .
18,671
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While the heavy receipts of cattle and calves during the first week of August caused a further downward revision in prices, the smaller supply of desirable grades during the second week left the market
on a steady basis. The top price for hogs rose to
to $8.25 early in August, but later declined to $8.00.
50.0. E
59,50.5 §
64,785 §~
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LIVESTOCK
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A mod l'aLe amount. of rainfull covering most sec- j
FORT WORTH LIVESTOCK RECEIPTS
ti Oll of the Dish'i t's rang terri tory during the la t
w eJu of July wa g u rally beneficial to the rang
111 Ati zona and we Lern New 1\1 xico the rain have
)" Ii v d th drouthy condition, have au ed a steady
impro ement in rang s, and have upplied an adeuat
mount of to k water. However, in other
ction , late rep rls indicate that the hot, dl'Y
~
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w ·(ther dUl'i g Lbe past two week has been UJ1- ~nUlllln"I IIIUIIJlf'UIIIIII'Ullllllulllmulllu,ul'mUnJIIllmIIJl1lIIItunIIUlUllnllu'"IIUIUIIIIIIIUIIIIIIIIUIIIUlUIIUUIII.UlUIIIUI~
favorable to th ranges and in many pIa e there is
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~
COMP ARATIVE TOP LIVESTOCK PRICES
~
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Th condition of Texa eattle ran es de lined 7
points during July, being 83 pel' C nt of normal on
Au ~ust 1 ~ t· - heep rang s declined from 89 per cent
f normal to 87 P I' cent. De pite the deterioration
f the range , the condition of livestock generally i.
fairl,. good, and only a sligh t decline is noted as compared to the previous month.
f
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Deef Steers .... _ _._". __ .
$ 9.15
Stocker Steers........................
7.50. ,
Dutcher Cows. .........................
5.0.0
Stocker Cows .......... .... ............ _....._.......
Calves ........................... .........
7.75
Hogs ........................................
8.10
Sheep ......................................
7.60.
Lambs ......................................
14.0.0
~~~;
$
9.50.
6.60.
6.0.0.
3.50.
8.40
7.75
7.35
14.25
f~~~
$
8.50
6.25
5.75
4.00.
8.00
10.80.
7.25
10.50.
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4
MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS
WHOLESALE TRADE
In the wholesale channels of distribution some
lines of trade reflected a renewed buying activity,
while seasonal quieti tude prevailed in other lines.
The sales of dry goods, drugs, farm implements, and
hardware were in a larger volume than the previous
month, but sales of groceries and furniture reflected
seasonal declines. All reporting lines reflected substantial gains over the corresponding month of the
previous year.
Trade leaders as a general rule are looking forward to an active business during the fall season,
and business so far has been encouraging. Nevertheless, retailers seem to be operating on a conservative basis and are limiting current buying to their
near-by needs. The deterioration of the cotton crop
during the past month has caused hesitation in some
quarters, and the retailers are showing a disposition
to await more definite information concerning the
outcome of this year's crop before laying in their
fall stocks. However, the upward trend of the cotton
market has had a tendency to develop more active
buying of cotton goods.
Collections were generally reported to be slow as
a result of seasonal influences, but payments were
satisfactory.
Farm
Implements
Although the July sales of farm implement firms increased 6.4 per cent
as compared to the previous month
and 96.2 per cent as compared to the corresponding
month a year ago, the buying demand is generally
light. The high prices being asked for implements
and the deterioration of the cotton crop have been
large factors in the light current demand as the
farmers are restricting purchases until more definite
information is available concerning the outcome of
this year's crop. However, the recent upturn in the
cotton market is a reassuring factor and to a certain
extent counterbalances the unfavorable elements. A
good price for the present cotton crop will place a
large amount of surplus funds in the hands of the
farmers, and will be an encouragement for them to
buy more liberally the long needed implements.
While buying during the past year has shown a remarkable improvement over the previous year, farmers generally are not adequately supplied with implements.
Dealers state that collections are already beginning to come in and the fall payments are expected
to be good.
Furniture
Dry
An active demand for dry goods at
Goods
wholesale developed during July as
the retailers began making their
purchases for the fall trade. The net sales of ten
dry goods firms reflected an increase of 29.7 per
cent over June sales, and 5.9 per cent over sales during July a year ago. Reports indicate that the opening of the fall buying season in many centers early
in August brought many merchants to the markets
with the result that sales for that month will show
a substantial increase over July sale~.
The rising cotton market has brought about more
stable price conditions in the primary textile markets
and has stimulated buying among retailers. However, .purchases are being made conservatively, and
forward commitments are being limited to the welldefined requirements for the fall trade.
That the wholesalers are well prepared to take
care of their customers during the fall season is
shown by the fact that stocks at the close of July
were 43.8 per cent greater than on the correspond·
ing date a year ago.
The present operations point toward a good fall
business and dealers are optimistic over the present
outlook.
Collections were reported to be satisfactory.
Seasonal influences were responsible
for a decline of 16.2 per cent in the
net sales of reporting furniture firms during July,
as compared to June sales. However, July sales were
five per cent larger than sales for July a year ago.
The distribution of furniture generally slows down
during the l'Ilimmer months, as retailers feature
clearance sales to reduce stocks and do not make
extensive replacements until the fall trade begins to
materialize.
Hardware
Although the hardware trade showed the effects of seasonal dullness
in some sections of the district, the July sales were
1.7 per cent greater than June sales, and reflected
an increase of 41.4 per cent as compared with the
corresponding month a year ago. The summer business on the whole has been good and dealers are
looking forward to an active fall business.
Prices as a rule have remained stationary, but
some declines have been noted.
Drugs
The July sales of seven drug firms
disclosed a gain of 6.5 per cent as
compared to June sales, and were 9.8 per cent greater
than sales during July, 1922, being the largest in-
e
5
MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS
crease of a current month's sales over the corresponding month of the previous year that has been
registered since January of this year. The trade
buying during July and August has been more brisk
than the previous months of the summer, and the
July sales were the largest since March. The sentiment of the trade seems to be that there will be
active business throughout the fall season.
While August collections were somewhat slower
than Jnly collections, they were reported to be satisfactory for this season.
.
months, and numerous recessions have been reported.
However, dealers state that the market at the present time is on a steady basis.
While collections were reported to be slow during
July and early August, this situation was to be expected at this season of the year, because of the
dull trade at retail. However, as soon as the fall
trade begins to develop and the cotton crop begins
to move freely, a material improvement in the collection situation is expected.
~l l lllIIlltIIIII IU lllllt ' lIIlll ll mUI II" "II 'l lIIllltlUII I IllIIIIIIIIIUIi1IIIIjllllllltl llt llll llllll lllll'lIIull lll mllllllll' IIII IIIIIIIII'I"''''IIIIIIII~
CONDITION OF WHOLESALE TRADE
E
There was a more restricted demand li~
DURING JULY, 1923
~
for groceries during the past month ~
Percentage of Increase or Decrease in
~
than has been evident during any month of the sum'0".
mer, but this development is largely seasonal, and
firms generally are optimistic regarding the out~
t~J~
~~2:
m~
~9; ~
look for the fall trade. July sales declined 10.1 per § Groceries ................ + 4.5 -10.1 + 16.5 - 2.4 ~
cent as compared to June sales, but reflected a gain
~7rd~o:::.. ::::::::::::::
t2~:~ t~~:~
~:~
of 4.5 per cent as compared to July a year ago. The § Farm Implements.. + 96.2' + 6.4 -12. I - 1.8 §
+ 5.0 -16.2 _............. ......... _.. §
market quotations on the various lines of the grocery § Furnitu e
g
Druf:s ................
+ 9.8 + 6.5 + 14.7 + 1:1 ~
trade have shown a weakness during the past two
Groceries
I
I,o',:'ff'.!:,:~
I
lI'l!:~~'"'
tJ::
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t ;
:l111lU1 i1 ltlUl ltU 'III IIIIJ"11 11IUl1 l l1l1lflll llltll 'lllIIlI l lltlIU 1t1flUIIIUIII Uln UII\IIIIIIIJII IIIIII,IIIIIII,UIIUlI IIl UIIl II IUJllllllltlIIIIIII ,II IIC
RET AlL TRADE
The effects of midsummer dullness were visible in
the retail channels of distribution during July, when
the net sales of twenty-two department stores declined 27.6 per cent as compared to the previous
month. However, sales were 2.8 per cent in excess
of those during the corresponding month a year ago.
Clearance sales were featured extensively during the
month and met with fairly good success.
There was a further reduction of 1.2 per cent in
the stocks of these stores at the end of July as compared to those on hand at the close of June. How-
ever, they were 7.5 per cent larger than those on
hand at the close of July a year ago. The ratio of
stccks to sales for July was 580.9 per cent as compared to 559.7 per cent during July a year ago.
The ratio of outstanding orders to last year's purchases was 9.1 per cent on July 31st as compared
to 6.0 per cent on June 30th, and 10.7 per cent on
July 31st a year ago.
The ratio of July collections to accounts receivable
on July 1st was 36.8 per cent as compared to 38.1
per cent for June and 34.1 per cent for July last
year.
-;UllllllllllllIUIIJUJlltlllllllllllllllllllttltllllllllllltlllllllllllllllnllll1111t1tUlIIIlIlIllIItIllIIUlUIIUIIIII'IlIIlnIJltIlIllIIIlIllIlIIIUUtlllllll"UllllllltllUUIIIIIIIIUlIlJIIU,UIl'I IIIIIIIIIIIIIIIIIII II 11111111I1J1lltllltlllllllIl111Ut lllllllt"llItlUlIlI"lIl!lnUllUlJmtlllttllllllltllllllllt"llIllUlIl~
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~
Total Sales-
~
!
~
Dall"s
F't, Worth
auu . ton
All Other
+ ~.~
-:-26...
+
2.6
-22.0
+ 9.5
-36.2
-.6
-26.7
+ 2.8 ~
-27.6 I
Credit SalesJuly, 1923, compared with July, 1922.. ..............................
July, 1923, compared with June, 1923............. ..................
Stocks-
+ 4.4
-26.6
+14.7
---.26.3
+21.4
-45.1
+ 6.3
-30.4
+ 9.0
-31.6
t~
+7:~
~~~~: ~~~~: ~~~~:~:~ :n~ j~~~: ~~~L:::::::::::::::::::::::::::::
+1~:~
Ratio of stocks to salea ........................................................... _.. ,
RaUo of outstanding orders to la t yeal"s purchases............
~__ Ratio of July collection to Accounts Receivable, due and
outstanding on July 1, 1923............. _ ... _....... _ ...... _.....
631.1
9.6
+
5·14.]
18.5
+
542.1
6.4
31.6
34.7
39.8
I
I
I_
g
i
~
ThW
DIBtTiet
July 1923, compared with July, 1922.......... ......... ........... .
July, 1923, compared with June, 1923......... .. .....................
i
~"_~
I•
BUSINESS OF DEPARTMENT STORES
~:~
i~
563.2
6.7
+
580.9
9.1
47.6
36.8
Ii
i
I
i
1_
i
$
~ltUJl lU ... W IIUhuIIUIUltIIIUJU"lIllllnllllUnlulllllluIIIUUIIJ.llItltnUUtllnUllII11,lIlitmWUII4IIIIIIUI IIIU!ltI1l1tlIIIII1U11U'n'IIIIIUI,lhU~tlll"Ultlntlllnl'tluUIIIUUllllhlllllt'lIIltIIUlIi11111111111111111111111111111111111111111111111111111111'11111 11111111 11111111111111IIIIIJIllItimll"'~
6
MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS
FINANCIAL
The summer inactivity of business was reflected
in the July volume of public spending as measured
by debits to individual accounts at the principal
cities of this district. The total amount of debits
¥'ttllltlUIlUltfffnlll1l"lflnn UlIHrI,IHtllfft""lIIlllIItllltllIllIItIIIIRUllllIllllllllllitlUlIlI
:~
IIIWIIUllIll11I1IlI ,"illthlliUllllllllllllfllllllllllllllllJfJlIJUUltulltttlnlUUlIlIUnmm111m" ,tII ltlI~UjJU1II11t1UllllUlliltililliJlI1 IIUtUJUlUllUlIIlIll.IJnttlU"fltJltllltttlflmn',,"I~
July, 1923
Albuquerque ...........__..._-.. __.............. _.............
a Austin ...................................................... _.......... _.
~ Beaumont ...............................................................
~ Dallas ._ ........... _ ...... _........ __ ..........._................
_ EI Paso _ ................ _ ............................___........
~ Fort Worth ............... _ .....___...........................
~~~~~~~o~
.....~~..::::..::::::~::..:::::::..:::::~:::::::::::::'~-:'-:'-:".=:
San Antonio ..................... _ ..._ ...... _... .................
Shreveport ... _ ......... _ ._ ... __ .... ___ ..................
~ Texarkana ......................... _ ......_ ........... __ .......
_ Tucson ...................... __....... __ ...................__ ...
~ Waco ....._ ........................ _ ....._....... _..................
~
i=
CHARGES TO DEPOSITORS' ACCOUNTS
Ii
1=
to individual accounts at thirteen cities amounted to
$520,674,000 during July as compared to $569,142,000 for June and $520,511,000 for July, 1922. This
represents a decline of 8.5 per cent as compared to
the previous month.
I
Totals, Eleventh District ................ _ ..... -
June. 1923
$10,261 ,000
11,956,000
16,300,000
128,462,000
28,252,000
62,194,000
126471:,~9~6911·, 0 0 ~ 0
July, 1922
lIne. or Dee.
$ 10,534,000 .
13,842,000 '1
17,250,000
145,210,000
33,095,000.
72,995,000!
163~1:,216590~3,:0~goo~
31,047,000
8,445,000
6,605,000
12,771,000
33,662,000
l:!,614,000
7,375,000
13,505000
$520,674,000
$569,142,000
- 2.6
-13.6
- 5.5
-11.5
-14.6
-15'01
$
l!:.~:,:
- 7.8 :
- 2.01
-10.4 ,
5.4
.51
IDC.
9,389,000
11,758,000
13,538,000
128,096,000
30,920,000
88,408,000
or Dee.
i
2~~6:,~0~6~9:,gOOOoooO +:nt~
7.3
30,151,000
6,821,000
7,248,000
13,075,000
$520,511,000
i
+ 9.3 li
+ 1.7 ~
+ 20.4
+.3- 8.6 ~
-29.7 ~
!:_=:_=_
_
+ 3.0
+23.8- 8.8 ~
- 2.3 ~
none
i
:tllIU IIIIIIIUtmUIFllIIIIIIIUlllfHIIIIIUllllnllllllTfflllllltll l llllll l nUllrnmll l lllllIIItllllllllllllllllllllllllllllllllU1I11IIUlIlillllll l lllllllJllltllllllllUIIIIII1IIIIIIIIItlllllliliUltlllillUJ1111lllllllllllllllUUJUlUltJJIIIIIIUlIHllllftlllitltllllltll".UttIlUltlllllllllllflhtlllnlft,""",""...,,;i
Acceptance
Market
There was a slight increase in the
volume of acceptances executed by
accepting banks of this district during July, and which were outstanding on the last day
of the month. Acceptances outstanding on July 31st
amounted to $1,321,257.94 as compared to $1,195,499.89 on June 30th, and $879,783.08 on July 31,
1922. Acceptances executed against import and export transactions declined from $454,281.21 on June
30th to $357,436.56 on July 31st, while those based
on the domestic shipment and storage of goods increased from $741,218.68 on June 30th to $963,821.38 on July 31st. The Federal Reserve Bank of
Dallas decreased its holdings of this class of paper
from $12,354,595.35 on June 30th to $1,594,407.44
on July 31st, on account of the increased demand for
credit accommodations from member banks.
Condition of
Reserve City
Banks
The loans of reserve ci ty banks rose
$1,773,000 during the five-week
period between June 27th and
August 1st, and their net demand
deposits dropped $8,695,000. The United States
securities owned by these banks were reduced from
$62,914,000 on June 27th to $54,265,000 o.n August
1st, or a net reduction of $8,649,000. Their holdings
of United States securities on August 1st were
$4,274,000 greater than those held on August 2,
1922. These banks increased their rediscounts and
bills payable with the Federal Reserve Bank from
$8,163,000 on June 27th to $14,218,000 on August
1st. This is the greatest amount carried for these
banks by the Federal Reserve Bank since the latter
part of 1921. Due to the increase in loans and the
falling off in deposits a sharp rise occurred in the
ratio of loans to deposits, being 98 per cent on
August 1st as t:ompared to 93 per cent on June 27,
1923, and August 2, 1922.
~"hfmll1l1ftn nll mnIlIl Ill IUIII' lIllIItlU U IIIIIIIIIIIIUll lllUitU IIIIIUllll llllll lll llll ftUIlImmlllllll l' 11I1111IlflIllIUIIIIU11111111I11t"Ulln.'lIllmjltmtllnm"lI1fftl~llllnufftnmnllnIlU II ,jmmllift",nnlTtllllUtIJUUIIIIIUlII'IIIIIIIlllIIllllllllIlIlfn"'"llIIllItr'"Ulftttllftullln;:
~
j= ~
CONDITION STATISTICS OF MEMBER BANKS IN SELECTED CITIES
1.
2.
Number of reporting banks....................................................................
U. S. securities owned..............................................................................
~bli::ii~~~::::::::::::::::::::::::::::::
!~ ~:5. t~~~~h~!c~t:ecrb;oU~sS.aG~::~~~~!~:
Loans secured by stocks and bonds other than U. S. Government
=
~
i_
&.
7.
8.
~. 9.
~ 10.
§ 11.
§
obligations ..............................................................................................
All other loans............................................................................................
Net demand deposits................................... _.............................................
Time deposits..............................................................................................
Reserve with Federal Reserve Bank......................................................
Bills payable and rediscounts with Federal Reserve Bank................
Ratio of loans (*) to net demand deposits ...... .. ·.. ·............ ·.............. 1
*Loans include only items .( and 6.
A5Ug4·,216·51,09~0820
$Ju6n2e,9271'4,109502302
1~:~gg:ggg
~:~~~:g~~
50,470,000
196,906,000
205,480,000
74,930,000
21,116,000
14,218,000
98%
49,024,000
195,088,000
214,175,000
75,806,000
22,698,000
8,163,000
93% 1
$
~
A4Ug9"929'1,100~~202
I
~:~~~:~~~
~__,.:= ,_
$
42,728,000
187,570,000
206,093,000
=65,747,000
~
22,760,000
~
3,741,000
~
93%
i"
~lIlIj l lllllll l llnl l mllu l ll mUJlnIll IIlUIl1f11I111IU1U1l11IlmltllU llll nm ll llllnIIIIIIUI\II,1 nn ll llll l llllUllllllllllhmUllllllllllllllltruUUlllllllLUmUltUlIIU lllUUIlmUIIIIllIUIIIUnIlIIUlIIIIHIlUllrnlllllll'llIIllllnnlllllnllnIlUllnn~tltllmlU ll"l1~tlIIIIUIIIII,ullmllllllllllllllT?
•
·
•
8
MONTHL Y REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS
during 1922 and 1923, it will be noted that there has
been an almost uninterrupted rise since the beginning of 1922. In only two months, July, 1922 and
]923, has there been a loss from the previous month.
The decline at this time of the year is probably due
to the withdrawal of savings for vacation trips. The
total increase in the aggregate savings deposits during the eighteen months' period amounted to approximately $16,000,000.
SAVINGS DEPOSITS
==~================~====
Number of
II Rellortine
I
~~~¥~~~=:::~:'~:': ':~: ::: ': :=:': .' :' ': ':~: ': : ':':'~= -:=':'~:~:': : :::::::':': : 'I
EI Paso ...................._ ........................ _..................................
Fort Worth .............. _ ...................... _.............. _ .. _..................
Houston .- ..................................................... _._.................
San Ant 9nio .............. _ .. _........._ ......... .......... _...................
Shreveport ............................................................... ___ ._.....
i ~i~f.;~~ii~~=:~~=:=~:::~~::::=:::~:=:~
i
TotOo! ......
:='11 11 I IIIHlm " ITi, .111111 11 ' :11 :111' II
~ ' !Ul l m w
. ..... ..........
. .... ........ ,
Bank.
JUJI ~.!.! t.
"
.lld v :ll.
J i) ~ 2
v
Inc. or
D
ce.
J " n" .".0 ,
19'2'.\
I
,
ne. or
Dec.
i li:ii~:~i~1 l:!g!:il~' +t~ll J~i~i~~l ~:~ I
4
7
14
6
3
7,707,221
7,307,07
1 ,708,471
9,411,014
7,637,426
J,tm:m
123
G 292,639
6,74 ,054
15,400,799
,692,16!J
6,463,445
1
22.5
6,678,372
8.3
7,611,174
+21.5 1 18,870,520
.3 1 9,466,-130
+1 .21 7,685,390
+
~f,~~!! ~~:!I Jl:H:~
Ol,64-1 .!'!641 77,661 ,Q06
+ 1'1.9,
+ 15.4 §
- 4.0 E
.9 ~
.6 §
.6 §
=0:: !j
.:1
a : ; 1II I l: illllllil~ 1 HI1Il11t1111i!ll ~1!H I : 1! 1I t l JI II ! u: i ' :111 !: II! ':11 ::"1' j 1111; II 11 I1 11 till : I It : i II!: I I \" '1 11 i l lll! III t!!ll11l l il U I IIIHIIII ' , I: I I : ! I : III I ! 111 I I! 111 1\ I : i !11l11: I: II r!1: I I ! i 11 111 I I;!! II : ' I I I:: ! I :, i !, t l: i! I ,I :: : 1:1 : ;, : : : : I : !!: I! or! I: ; , j If I! ": I: I:! i : "~
SAVINGS DEPOSITS OF 110 BANKS IN THE ELEVE~TH FEDEHAL RE SERVE; DI;:;TRICT DURu\G ID22 AND In,,
MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS
9
FAILURES
Insolvency statistics for July reflect a sharp de- registered, there being G4 insolvencies in that month
cline in the number of defaulting firms, but an in- with a total indebtedness of $1,230,58l.
In the United States as a whole insolvencies were
crease in the amount of indebtedness involved. Ther e
the smallest in number for any month since Novemwere 81 failures during Jul y with liabilities aggregatoer, 1920, but there was an increase as compared
ing $2,576,000 as compared to 97 insolvencies dur- to the previous month in indebtedness involved.
ing June with a total indebtedness of $1,293,018.
It will be seen from the appended chart that the
As compared to a year ago an increase in both the trend of failures has been very irregular during the
number of failures and the amount of liabilities was present year.
~·ttU t IlJlll l lltJl lUl linUlillfmllllllllllll1' I "'IIIIIIi"lml"1 1 11 1 111 1 11111 111111 1 111 1 1111 1 111111111111111111111111111111111111'1J"llllltllllIIIIIIIII11111111111111111 1 111111111"111Illtlrllllllllllll, I I[1111111111111111'11111111111111111111111111111111111111111111111,111111111111111111111111IIIIIIIIIIIIIIIIItllllllltlllll.tlll'=-
Ii'~~~::;'y:Ol-~;~·l~;~:~'~;:;::: r~i~ ~i:r;f·Nii;i ~ j~ :i :;~
=_
_~§:==:== March
Apri l ..... _....................... _... _..
June . _...................... .... -_ ... _. .
Judy ... .................... _.~ . _.......
03
78
97
81
2,474,50'1
8,874,897
3,779,959
1,293,01
2,576,000
'rota!. Seven monlhs ......._.......
648
22,627,081
Mny ... ........_............ _•• _. _..
91
107 1
.
167
84
114
64
2,121,725
1,682,
1,520
1,530
1,35
1,231
3, 65,30]
2,175,351
2,481,67fi
1,230 5 1
!JiiO
~'tnl l rml1 l1lnlllll"tul l lnnIIIlIlIl IIIllUltllfllIlIII UIIIIIIIl. ll ltlllI l llllUlIUlrl.1lU lll llllilU IllU" I II4.IIi.IUIIIIIIUljll.lI~tllllftllll) 1,~ll'I,:,""':lIll';Il!III~':I'lfl'"
48,393,138 \
51,491 94.1
41,022277
2 , 78,276
35,721,188
295,14.5,256
I
2,46:1 i 71,608,192 2,167 1 73,05 ,637
1,9GO,~ ,402,8 (j
1,740 382.l2,.J.50
1,753
0,010,313
I
15,137 413,726.65J
~
- "'111 """'ltlJl I!l"'1"lU"U II'!!!!"I I' JUlI'IIII'I li llm IIlUIIUI'111W'IIII'to"'''" " mu''''''''''!l l llll"n;:;
T HE l'\UiVIDER OF FAIL lJ HES AND THE A:\lOUNT OF ],iAnl UTlE S IN THE ELEVENTH FEDERAL RESERVE
DISTHICT DUIW,G lU:Z2 AND 192,)
10
MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS
PETROLEUM
The district's output of crude oil reached a new
high mark for the year during July, when the total
production of all fields amounted to 13,306,105 barrels as compared to 11,911,230 barrels during the
previous month, or an increase of 32,188 barrels in
the daily average run. Completions in the major
fields of the district fell below those of the previous
month, but there was a large increase in the initial
production. A total of 506 wells was finished, in·
cluding 338 producers with an initial yield of 239,757 barrels, as against 752 wells completed during
June, of which 507 were successful with a flush production of 128,837 barrels. This large increase in
the new production added was largely responsible
for the increased production, as this more than offset the decline in the old wells.
There were 444 wells completed in Texas fields,
including 295 producers yielding an initial flow of
236,232 barrels, as compared to 691 completions during June, of which 459 were producers with an initial
flow of 125,087 barrels.
The production of the Central-West Texas fields
increased from 3,925,830 barrels during June to
5,529,395 barrels during July, which was due entirely
to the augmented output of the Corsicana-Powell
field, where there was 187,145 barrels of new production added from 35 successful completions. The
exceptionally large initial production obtained from
the new wells brought the month's total production
in this field to 2,029,455 barrels, as against 349,330
barrels during June. While there were 67 producers
completed in the other fields of this section they
added only 5,978 barrels of new production.
The total production in the North Texas district
r eached a new high level for the year, but showed
a slight decrea e from the previous month in the
daily a erage run, due to the longer month. The
output for the month amonnted to 2484,315 barrels
a com par d to 2413660 barrels during June. The
J uly completions numbered 205 wells, of which 121
were producers as compared to 268 completion in
June, of which 183 were successful. The new production added from the successful completions dur-
ing July amounted to only 12,941 barrels, as compared to 22,340 barrels during June. While there
were fewer completions and a considerable reduction in initial production in the Archer County field,
the month's production showed a substantial gain,
and was a large factor in the increased output of
the district for the month.
Despite the large initial flow obtained from the
new wells in the Orange and Hull fields, the production of the Texas Coastal fields dropped from 2,747,590 barrels in June to 2,669,215 barrels in July, or
a net loss of 5,482 barrels in the daily average run.
While there were only 32 completions in July as
compared to 66 in June, the new production added
from the 27 producers completed during July
amounted to 25,830 barrels as compared to 21,535
barrels obtained from 52 producers completed during June.
The Louisiana production amounted to 2,243,120
barrels during July, as compared to 2,487,700 barrels during June, or a net decline of 10,565 barrels
in the daily average yield. While all Louisiana fields
(with the exception of Haynesville and Caddo) registered an increase, the declines in these fields more
than offset the increase in other fields. The decline
in the Haynesville field amounted to approximately
350,000 barrels. Drilling operations in the Louisiana
fields remained on practically the same basis as the
previous month.
Crude Oil
Prices
During the past month some fields
reported a further reduction in the
posted price of crude oil. Corsicana
light oil was reduced to 75 cents per barrel, but was
later increased to $1.00 per barrel. Corsicana heavy
oil was reduced to 50 cents per barrel. On July 25th
the price of Texas Coastal oil wa reduced from $1.50
pel' barrel to $1.25 per barrel. On Augu t 3rd t he
fonner grading basi which wa in effect prior to
December, 1922, wa l'eadopted for Louisiana fields.
The price now paid for the best grade of Louisiana
oil ranges from $1.30 to $1.45 per barrel.
I
!1l1n IIlUUllllllllhnlllltJUllltflIfIIIUfllllJllntlltllllltllUIIIIII"nnmnlllllltltttllllnnnnlllllllllllltlnlllllll1l1ll11ltnllU"UltllllltlllllllllllllllflHIIlIllItUtIIlUlHII"","utttUmJUJUllilfUI ntllUlilimmmltllllllltlllllll1l11lt1f1rf11111ff1mUllllllllll1l11l1l1ttll1ll1n11111I11t,U1Ulnl!.&::
i.:
..
CRUDE OIL PRICES
Texas
~
AuI'!. 9.
1923
Aug. 10.
1922
Louisiana
Aug. 9.
1923
Au". 10.
1922
Corsicana light... ......................................... $1.00
$1.00
Caddo (38 gravity a nd above ) ............... $1.45
$1.25
Corsicana heavy ...... ................................. .50
.65
Bull Bayou (38 gravity and above) ........ 1.35
1.15
=; !; ~ Texas CoastaL ........................................... 1.25
1.25
Homer (35 gr avity and a bove) ............. 1.45
1.25
'= Mexia .......................................................... 1.00
1.25
Haynesville (33 gravit y a nd above ) .... 1.30
1.10
Currie ............... ................................. .......... 1.00
1.50
De Soto Crude.............. .............................. 1.45
1.00
~ North Texas (41 gravity and above) .... 2.20
-,
~
(*) 1922 Prices for North Texas oil are not comparable with 1923 prices, due to the fact that this oil was not pur§ chased on a gravity basis until December, 1922. North Tex as crude on August 10, 1922, was selling for $2.00 per barrel.
~
f.u,IHlltllIIllI'JUUlIWllllllllllllumuIIUlliuIUIlUllIlllllltIIIfIIIIIIUUillilltlHnUnlll1m
_
:
~
~
_!=_=_
':
E
§
~
11JI1II1I""lIllIlllIl1l1f1l11tt""1f1l1tlllttUlttttlln""mnttll'''lltltnUUltlttltlIIUJIUUut.M.Utll'tlUlllilmlltll"",,"umllU1umUllllnJIIIII!1I""'"lIltlUnt,IUUltlJUUnriliUnllnllulllnlUl~
11
MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS
;"'-""UIII ' ''''''' llnIlIUUllflUlllltIlllltll l lllllllltlIIlIIIllIlIlIIIIIlIll IUllitulU1I,IU ' IJII1I111II111IIIIHIIJItIlUIIUIllIlII1I11III11U'''UUIIU"ntlIlIHtmIIlUIItIiIlTlUun11I11UIIIIIIIIIIIIIIIIIIIIUtU 1IIIIIIIl IIIIUII,lIltilliIUIIIIJUUUtfUlllltimUnOtUUillllllll1tflUl1 llt11l llll l11lli 'ItuU ' Uli
i
i
OIL PRODUCTION
I
;
I
i
I
i
!
~=
;
i
~
~
~"tlnlll~"I III'"lItmltlllllltU lllllllllllfllIlIIlIlUUII""111I1II1111I11lInn""1mllnltlllfllIU"' It lltlllllltlU l nTlIlI111fIIlUIUII'UllllllrlllllllliltIIllllOIIIIIUIJtTIJIU l tlfnnllllJlII"I IItIllU'"I1Ulltllttllllllllfllfllll1tlfllUllmnlnnnmtplUIIIIIIIIII1IIIIIUltlUIll trllllllllfllUUIIlIlIllIlIU'-
INo,:;,~~..,
guttJ.IIIU , uuuU l umJI I IIUlt'llIjUIIIllIIU"Hnll"lmllun~Utulllllll'UtlIItUitllllllnllllmlln.-Oil.IIIII1t1II11I11I I III1!1tlllIlIlIIiJUllrnnlll l llllllllllltl ll ll lft I I IUIIII I IllIIUUUUIlIIUlll l llllllll tU'IIIIII I III"nt lllll lllllllllllllfIIllllllllllllllnl1 l1l ""nll'IIIIII I II "' IIIIIIII"III"'UI"'IIII"~
__.__ JUL~~:IL:I~~RE:~LT:'~';;5
P'OO"":21
Fm'"'
•
_ Central-West Texas ... _........ __ .._.......... _.....................__ .................... _...........
~ Texas CoastaL ....... ........................................._ ......................... _.................
~ Miscellaneous fields .................... ......... _...................... _..............•.............. _......
~ Texas Wildcats....................... __ ...................... _....................................... __ .__
131
32
25
51
102
27
24
21
Totals, Texas ......................... ................. _ ....._........................... ...............
North Louisiana........................... _........ _... _ ................. _........ _ ._.......... ......
444
62
295
43
14~19
July totals, DistricL ............................ _..................... _............................
June totals, District.. .......__ .............. _............. _................................. _
506
752
. as
507
168
245
--~=:~
:;
__
~
29
5
1
30
P~~;;41 t
193,123
25,830
4,135
203
~
~
§
236,232
=~_
3,525
i--=!-
~
239,757
128,837
~, U"It"lltffl""'I""I'tr "I""""t1J"'IIJII''' 'I''.'"'''"''''IU''''".''''''"''tr'"ltrUlIltrllllll""IIIIItIll""'lIItr""tr""",mlllIlW,"",ItIlU"'""' "UIllUUUl ''''"IIIIII'''''""''"'''''''''''''''II''U.,II'''''1lf tr""III"'"lIItr"'""""""'''''''''"''tr''''"IIU''U.J
(Oil statistics compiled by The Oil Weekly, Houston, Texas)
LUMBER
Increa ed activity wa evident among Eleventh
Di tdct pine mills dmit1g July 'i hen the actual production of reporting mill exceeded tbe normal production rates for the fil"'t time inc~ January of
this year. Deliverie were al 0 made in a larger volume, the July shipments being only slightly under
the month's production, as compared to 8 per cent
below production during June. The new orders received at the mills reflected a healthy improvement
during the month, having increased from 76 per
cent of normal production in June to 90 per cent
during July. That the mills are now making prompt
deliveries on new orders is evidenced by the fact
that the unfilled orders on the books of the mills
amounted to 47,082,342 feet on July 31st as compared to 62,939,457 feet on June 30th. Stocks on
hand at the mills were 20 per cent below normal on
July 31st as compared to 19 per cent on June 30th.
While the lumber market has undergone some decline within the past two months, it has now taken
a turn for the better and is showing a steady improvement.
:::.u tl JIIIfUIIIIIIJIUnlllttllllUUllll4l11JIIiUllmttlllmUlnmnllltllUllllUtllHiIIIllrtUlllmnUllrml l\IIIUllllrlllllllllllll1ll llnlIllIIlUIII"
=
~
JULY PINE MILL STATISTICS
=
~ Number of reporting mills............
41
~
Production .. _... ___ .___ ......... __ ... _.......... 99,049,667 feet
= Shipments ........................................ 98,401,526 feet
5 Orders .. _... ___ ._ .. __.......... ... __ ....... __.. _.___ 88,837,246 feet
~ Unfilled orders, July 31st... ........... 47,082,342 feet
i Normal production. ......................... 98,819,199 feet
Stocks, JUly 31st... ..................._.......243,257,477 feet
.. Normal stocks .. __ _...___ .... __ ...... __ .... __... 305,956,766 feet
Shipments, below production........
648,141 feet=0.6 %
!
Actual production above normal
230,468 feet=O.2%
a Orders below normal production 9,981,953 feet=10 %
Stocks below normaL .. ................... 62,699,289 feet=20 %
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BUILDING
Building o{:£rations in this district, which have
been maintained at a high level throughout the present year, reflected a sharp decline during July when
the valuation of building permits issued at the principal cities of the district declined 22.8 per cent as
compared to the previous month, and 24.1 per cent
12
MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS
as compared to the corresponding month of 1922.
The total volume of building permits valuations at
these cities aounted to $5,029,604 in July, as com-
pared to $6,511,509 in June, and $6,626,586 in July
a year ago.
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370 1,761,603
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CEMENT
The production of portland cement in this district
during July amounted to 397,000 barrels or a gain
of 63,000 b:lrreb over the previous month. The
total output for the fir::;t seven months of the year
amounted to 251G,OOO barrels, showing an increase
of 32.7 pel' cent over the production for the cern>
.<:ponding period of 1922.
Shipments from the mills during July totalled 411,000 barrels, which was 43,000 barrels in excess of
last month's shipments, and 14,000 barrels in excess
of the month's production.
Due to the heavy shipments, stocks on hand at
the close of the month declined 7 per cent from those
on hand at the end of the previous month .
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tocks at the end of the month at
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e
MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS
13
SUMMARY OF NATIONAL BUSINESS CONDITIONS
(Compiled by /he Federal Reserve B"ord as of August 24.1'123.)
Production of basic commodities and employment
at industrial establishments decreased in July and
there was a further decline in wholesale prices. The
distribution of goods, as indicated by railroad
freight shipments, maintained record totals and the
sales of merchandise, though showing the usual seasonable decline, continued to be relatively heavy.
PRODUCTION
Production in basic industries according to the
index of the Federal Reserve Board declined one
per cent in July. Mill consumption of cotton, steel,
ingot production and sugar meltings were considerably smaller than in June. New building operations
during the month, as measured by the value of permits granted and of contracts awarded, showed more
than the usual seasonable decline. Employment at
industrial establishments located in various sections
of the country decreased two per cent during July.
Manufacturers of automobiles, tires and cotton
goods showed large reductions in number of employees. There were some further announcements
of wage advances but these were not as numerous
as in the three previous months. A verage weekly
earnings of factory workers, due to a decrease in
full time operations, were three per cent less than
in June. Crop forecasts of the department of agriculture on the basis of condition on August 1st indicated that yields of wheat and rye would be below
July estimates, while larger yields of cotton, corn,
oats and barley were forecast. Due to seasonable increase in grain shipments and continued large shipments of industrial raw materials and manufactured
goods, car loadings in the last week of .July reported
the largest total on record.
TRADE
The volume of wholesale trade was about the same
in July as in June, while there was a decline in retail
trade, which was largely seasonal in nature. Among
the wholesale line, sales of dry goods and clothing
were larger in June, while sales of groceries, hardware and shoes were considerably smaller. Business
in all reporting lines was larger than in July, 1922,
and the average increase, as indicated by the Federal
Reserve Board's index of wholesale trade, was 13
per cent. Sales of department stores were 10 per
cent larger than a year ago, while mail order sales
showed a gain of 27 per cent. Stocks of department
stores showed a seasonal reduction during July and
were smaller than in any month since January.
PRICES
Wholesale commodity prices declined during July
for the third consecutive month. The index of the
bureau of labor statistics was 5 per cent below the
April peak. Prices of all groups of commodities,
except house furnishings, were lower in July. The
largest declines occurred in quotations of clothing,
drugs and chemicals, farm products and building
materials. During the first half of August price
changes were more moderate and quotations of cotton, spring wheat, hogs, sheep and rubber advanced.
BANK CREDIT
Since the middle of July the volume of bank credit
in use has shown a reduction, largely because of the
substantial liquidation of loans on stocks and bonds
at New York City banks. Between July 18th and
August 15th loans of member banks in leading cities
secured by stocks and bonds decreased by $94,000,000 to the lowest point for the year $258,000,000
below the amount outstanding at the beginning of
the year. Commercial loans, however, increased so
that the net reduction in total loans for the period
amounted to $60,000,000. Security investments declined $73,000,000 to a new low level for the year.
The volume of discounted paper held at the Federal
Reserve Banks showed a slight decrease, while their
holdings of acceptances and United States securities
reached new low points for the year. Between the
middle of July and the middle of August gold holdings of the Federal Reserve Banks increased by $21,100,000, reflecting in part net gold imports during
July of $27,400,000. Federal reserve note circulation increased by about $15,000,000 and there were
also substantial increases in the volume of gold certificates and national bank notes in circulation.
Slightly firmer tendencies in money rates during the
month were reflected in a gradually increasing proportion of commercial paper sales at 514 per cent
as compared with 5 per cent in the previous month.
14
MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS
INO[l(
or
PRODUCTION IN BASIC INDUSTRIES
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ELEVENTH FEDERAL RESERVE DISTRICT
N.MEX.
DALLAS(j
TEXAS
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BOUNDARY OF ELEVENTH DISTRICT
BOUNDARIES OF BRANCH TERRITORIES
BOUNDARIES OF STATES
FEDERAL RESERVE CITY
FEDERAL RESERVE BRANCH CITIES
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@FedFRASER