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Volume 10, No.7

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28

DISTRICT SUMMARY

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THE SITUATION AT A GLANCE

~~~~

;;

July
June
Ino. or Dec.
:
debits to Individual accounts (at 15 cities) .... _................................................................... _...........
$610;866,000
$612.805,000
Dec.
.80/0 E
RepartmB't store Bales ........ _...•... _........ _.................._....... _.............................................................................. ~::: ....................
Dec.
25.8%;;
Reserve B nn~ lonns to member bnnks at end of month ................................................................ _................ $ 9.294i;~~~% $ 6.681i1~~% ~e~.
8.4 ~2950~rio: :1.
.

;;

Lumber orders at pmo mill. (per cent of normnl production) ........................ _.......................................

5 ~ank

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An improvement in the outlook for business, agriculture,
and livestock has followed in the wake of the general rains,
which fell over most sections of the district during the
last days of July and the early days of August. The
drouth now seems to be broken throughout the district
except in the south central counties of Texas. In that sec~i0!l the rainfall was lightest and considerably more rain
IS needed before any material improvement can take place.
In all sections of the district's range territory (except that
:mentionel above) sufficient rain has fallen to practically
assure fall and winter grass and livestock are taking on
flesh rapidly as a result of the better feed conditions. A
:more optimistic sentiment now prevails throughout the
hange territory, especially in New Mexico, where stockmen
. ave had to contend with adverse physical conditions durlUg the past five years. There is a better demand for
stockers and indications are that a larger proportion of
the stock will be held on the ranges. Market prices are
gradually working upward.
The rains came in time to save the cotton crop in north~est Texas and to check deterioration elsewhere. The crop
lU northwest Texas is taking on new life, and in other
sections the bolls will mature more normally. The grain
jorghums and hay crops, which deteriorated rapidly during
uly, were revived and now promise good yields. Nevertheless, it must be borne in mind that this district is facing
~ serious feed shortage. The production of corn and oats
IS only a small percentage of a normal yield and praclically
~o feed has been harvested in the south central counties of
exas_ Very few counties will have any surplus feed to
sell and thousands of carloads will be brought in from outside states.
b The volume of retail trade in the larger cities, as measured
y department store sales, reflects the usual mid-summer
~~ll~ess but continues to equal that of last summer. While
thstn~)Ution of merchandise at wholesale during July and
e fnst half of August evidenced a sizable seasonal in-

m

crease, it is falling short of the corresponding period of
1924. Buying appears to be brisk in those sections where
good crop conditions prevail, but the demand is light elsewhere. Retailers throughout the district are proceeding very
cautiously and are limiting purchases to nearby needs. Such
a policy will enable them to gauge their purchases in accordance with consumer demand and will tend to preserve the
liquidity of the district's business organizations during a
period of reduced purchasing power.
The present soundness of business is evidenced by the
steady improvement in the commercial failure rate. There
were fewer insolvencies reported during July than in any
month during the past five years, and July, 1924, was the
only month within that period in which the indebtedness
of defaulting firms was smaller .
A further evidence of the strong financial position of
the Southwest is found in the fact that while the demand
for credit with which to finance the making of this year's
crops is nearing the peak, many banks still have a large
volume of funds invested in government securities and commercial paper and comparatively few banks have had to
seek outside aid in financing their customers. The loans
of the Federal Reserve Bank to member banks on August
15 amounted to only $10,000,000 as compared to $21,650,000 on the same date in 1924,. The deposits of member
banks declined $6,181,000 in July as against $9,24.1,000 in
that month a year ago, and on July 29th they were $89,161,000 greater than on July 23, 1924.
The July valuation of building permits issued at the
principal cities of this district was practically the same as in
June but reflected a decline from July, 1924. The production, shipments, and orders for lumber at the district's pine
mills and the production and shipments of cement showed
a substantial gain during the month.
There is a general surplus of labor throughout the Southwest and many industries are reducing their working forces.
While the surplus is most noticeable among the unskilled

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

laborers, some industries report a surplus of skilled labor.
Despite the large volume of construction work, the supply
of building craftsmen exceeds the demand in some cities.
On account of the drouth, there is an over·supply of farm
labor but this surplus is being gradually absorbed as
the demand for cotton pickers increases.
CROP CONDITIONS
The hot winds and the continued deficiency in moisture
caused a marked deterioration in crops over practically the
whole of the Eleventh Federal Reserve District during July.
However, the light to heavy rains during the latter days
of July and early August, which were fairly general over
the district, checked this deterioration, and in many sections
marked improvement has since occurred in the condition
of growing crops. In other sections the benefits from the
rains are only temporary and more rain is needed for the
crops to show any material improvement. The rain was
lightest in the soutn central counties of Texas, where the
drouth has been most severe. Nevertheless, where rain was
at all adequate in that section, farmers have been planting
feed crops and in case there is sufficient moisture in the fu·
ture and frost does not come too early, some feed will be
harvested.
Rapid deterioration in the Texas cotton crop during
the last half of July resulted from the hot winds and high
temperatures. The growth of the plant was checked
except in favored localities and the plants were shedding
forms, blooms, small bolls, and leaves. The condition of
the Texas crop on August first, as estimated by the Depart.
ment of Agriculture, averaged 4,9 per cent of normal and
indicated a probable yield of only 95 pounds per acre.
However, the deterioration was checked by the rains and the
crop in many sections is showing a noticeable improve·
ment. In the northwest, where much of the crop is still
small, the plants are taking on new growth and promise
well, although the crop will be late in maturing. While
the crop in the north, northwest, west and west center
was greatly damaged by the hot, dry weather during July,
the rains have been of great benefit as the bolls will now
mature more normally. In the south central counties, where
moisture was most needed, the rainfall was the lightest and
while some benefits are in evidence, conditions will not
show much improvement until more rain is obtained. Pick·
ing has become general in all areas of Texas except the
west and northwest, but much of the cotton picked prior
to the rains was from immature bolls.
In Southeastern Oklahoma, New Mexico, and Arizona,
the cotton crop promises good yields but the condition of
the crop in the northern half of Louisiana is very spotted.
The condition in the northwest section on August 1st was
considerably below the average for the state. The excessively
hot and dry weather had caused rapid deterioration on
sandy and thin land.
The condition of the corn crop continued to decline in
July and only a small percentage of the crop was benefited
by the recent rains. The estimated condition of the Texas
crop averaged 30 per cent of normal on August 1st, and
indicated a yield of only 31,640,000 bushels. A number
of counties in northeast Texas and a few counties elsewhere
in the State report the condition of the crop better than
the average. Reports indicate fairly good yields from
the corn crop in southeastern Oklahoma.

A marked deterioration also occurred in the condition
of the grain sorghums during July. The condition figure
for Texas was 59 per cent of normal on August 1st as
against 81 per cent on July 1st. However, the principal
producing sections have obtained ample rainfall and as
this crop responds quickly to improved conditions, good
yields are in prospect.
While the hay crops suffered severely from the effect
of the heat and drouth, the recent rains have been of great
benefit and increased yields are in prospect. A large
acreage will now be sown where moisture conditions are
favorable.
The Texas rice crop was greatly benefited by the recent
heavy rains. The August 1st condition of the crop was
estimated at 85 per cent of normal and indicates a yield of
5,474,000 bushels as compared to a production of 5,600,000
bushels last year.
LIVESTOCK
Range conditions throughout the Eleventh Federal Re·
serve . District were materially improved by the moderate
to heavy rains which fe,ll over most of the district's range
territory during the latter part of July and the early days
of August. In many sections of New Mexico and the ex·
treme western counties of Texas, reports indicate that the
rainfall has been the heaviest in several years. The grass
has responded quickly to the improved moisture conditions
and adequate grazing will be available in a short time.
While the livestock in most of these sections are still in
poor condition, they are now taking on flesh rapidly. Con'
tinued rains in southeastern Arizona have considerably im·
proved the conditions of both ranges and livestock.
In the west, west center, and plains sections of Texas the
ranges had become very dry but there has been ample rainfall to revive the grass. Livestock are in generally good condition. While some rain has fallen over many of the south
central counties, it has not been sufficient to relieve the
drouthy conditions. Deterioration has been checked but
considerably more rainfall will b~ needed to make fall and
winter grass. Large numbers of cattle have been shipped
to market or to outside pastures and those remaining are
in generally poor condition.
As a whole, the district's livestock situation has taken
a decided turn for the better. In all sections except in the
south central counties of Texas reports indicate that fall
and winter grass is now practically assured. The demand
for stockers seems to be improving and much of the young
stock and she·stuff will be held on the ranges.
Movements
and Prices'

Heavy receipts of cattle, calves, and sheep
at the Fort Worth market were in evidence
during July. The month's receipts were
substantially above those for the previous month and the
receipts of cattle and sheep were considerably larger than
for July, 1924. On the other hand, the number of hogs
yarded in July showed a sizable decrease from both the
previous month and the same month last year.
While the cattle market was somewhat erratic, depending
upon whether the receipts were large or small, the general
trend was toward lower levels. Choice cattle generally
cleared at satisfactory prices but a large proportion of
receipts was of poor quality much of which was forced
to market on account of the drouth. During the first three

MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS
weeks of July the hog market gradually worked to higher
levels and during the week ending July 25th the best
sold as high as $14.20. However, there was a reaction
during the last week and at the close of the month the best
were going at $13.75. Despite the heavy receipts the sheep
market was generally strong throughout the month. Good
wethers topped the market at $7.75 and lambs sold as high
as $13.50.
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FORT WORTH LIVESTOCK RECEIPTS

I·8:l~!'\1!f::

§ HolI'S .................... 18,121
:

8 ..

Sheep .................. 86,484

;:

·ifi~! 0~i;: ·k:1f~ ~:f:: I
24,821
21,492

L 6,200
G 18,992

26,489
24,884

L 7,818
G 10,600

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::

COTTON MOVEMENTS THROUGH THE PORT OF GALVESTON :

~

July

::
§
:: Net receipts.................
:: Exports .... _.... _.... _.... _
.;, Stoeks, July 81st..........

July

1926
81,849
68,208
................

1924
68,874
49,844
................

August 1st to
This
Season
8,660,982
8,709,0711
61,672

I

July 81st E
Last
::
Season
§
2,876,788 ::
2,867,792::
41,964 ::

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GALVESTON STOCK STATEMENT

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For Great Britain .... _...........................................
For Franceforeign ports ....................................... .
..............................................................
For other
For coastwise ports _.... _...................................•.
In compresses and depots ......................................

E::::.

200

60,88:00~00:

J'1~2:1,

~

800;:

8::28:~60~40

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Total .... _..............................................................
61,672
41,964 §
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HOUSTON COTTON MOVEMENTS
E
July
July
August 1 to July 81 -

•

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Stocker eteers ....................................
Butcher cows ......................................
Stocker cows .....................................

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Stocks, July 81st..........

...........•...

................

72,966

81,210 ::

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7.00
6.60

6.25

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The outstanding feature of the report on
cotton movements during the past season .
was the increase of 4.2.1 per cent in our
foreign exports as compared to the previous season. That
there was a broader world demand for American cotton is
shown by the fact that every cotton consuming country
of importance greatly increased their imports during the
past season.
Cotton
Movements.

[;J ••••
§
§.-

§
:

§
::
::

~

SEASON'S RECEIP'.M, EXPORTS, AND STOCKS AT ALL
:
UNITED STATES PORTS
'rhis Season
Last :::;eason
Receipts since AUIf. 1.t...................:::......
9 567 786
6 961 008
::
Exports: Great Britain ........................ 2'644'298
1'718'474::

:

Stocks at all U. S. Ports, July 81st.....

§

8.60

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211,666

I

228,897:

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SPOT COTTON PRICES
.;.
(Middling basis)
§
E
July, 1926
August 16, E
§
Hilfh
Low
1926
E
;: New York ........................................
26.90
28.80
28.60::
;: New Orlean. ..................................
26.80
22.90
28.07 i
E Dallas .... _.....................................• ... ,
26.70
28.70
2B.00 x
:: Houston .... _......................................
26.86
28.76
28.76
: Galveston ..........................................
26.00
2B.90
24.00 =

§

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COTTON CONSUMED AND ON HAND
COTTON GROWING STAreS
July
July
Aug. 1st to July 81st
1925
1924
Thi.
Last
Season
Season
Cotton consumed ...._.................. _........_............................ _.... _
827,087
241,167
4,218,611
B,868,817
Cotton on hand at end of month:
(alln conaumlnlf establiahment& .................................... _ .. ................ ... .............. .
428,769
840,167
(b In public storalfe and compresaes ................ _............ ,........... ....... ......... ........ .
889,678
626,662

.:.a .. •....................... ,•••••••••••

§

July
1926
488,898
................
................

UNl'rED STATES
~.
July
Aug. 1st to July 81st
1924
This
Last
~
Season
Season:
847,099
6,191,849
6,680,664 §
;:
................
866,269
721,589 S
................
614,196
678,926 !

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COTTONSEED PRODUCTS
While the volume of cottonseed products shipped during
july by the 71 reporting mills in this district was very
small, the average price received for all classes of products
Was substantially above the average price on June ship.
ments. The average price for crude oil was $.0992 per
pOund as compared to $.0902 per pound in June; for cake
~nd meal $4.0.13 per ton in July as compared to $37.27
In June; for hulls $13.78 per ton in July as compared to
~10,69 per ton in June; and for linters, $,0521 per pound
In July as compared to $.04.38 per pound in June.

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COTTONSEED PRODUCT~:!i~:J> AND AVERAGE PRICE

L,. _.

~ ~~~~ a~~..~~~:::::::::::::::::::::::::::::::::::::::::
.;. nters _.... _............................................

l,186,714Ibs.

§:::::.:

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.0621 per lb. :

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STATISTICS ON COTfl'ONSEED AND COTTONSEED PRODUCTS
Texas
United States
Aug. 1st to July 81st
Aug. 1st to July B1st
This
Last
This
Last
Season
Season
Season
Season
Cotton.eed received
at mills (tons) ...•... _ 1,689,000
1,826,022
4,624,000
8,828,969
Cottonseed crushed
(tons) ........................ 1,672,000
1,822,084
4,606,000
8,807,698
Cotton.eed on hand
(tons) ........................
22,000
11,119
84,000
21,711
Crude oil produced
(pounds) ................ _ 468,161,000 872,661,966 1,408,665,000 979,617,066
Cake and meal pro2,126,000 1,617,869
duced (tons)..............
788,000
614,687
Hulls produced (tons)
460,000
884,697
1,881,000
941,080
Linters produced
(600·lb. bales)..........
804,000
268,678
898,000
670,489
Stoeks on hand July
3lat
Crude Oil (pounds).... 1,126,000
647,098
2,904,000 2,618,014
Cake and meal (tons)
7,000
7,697
21,000
41,620
Hull. (tons) ................ _
10,000
14,488
48,000
88,616 _
Linters (600·lb. bales)
3,000
8,636
21,000
68,410 ::

8 ..............................

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MONTHLY REvmW OF BUSINESS AND INDUSTRIAL CONDmONS
other sections it will be much lighter than usual.
The July sales of farm implements reflected a further
The July production of reporting cotton mills reflected decline of 31.0 per cent from the previous month and were
a further decline as compared to the previous month but 34.8 per cent less than in the corresponding month last
was larger than in the corresponding month last year. The year. While July is generally a quiet month, the demand
month's production amounted to 561,261 pounds as com· was unusually slow this year due largely to the uncertainties
pared to 597,639 pounds in June and 490,964 in July a surrounding the agricultural situation. The excessive heat,
year ago. Some mills closed down during the month and hot winds, and continued deficiency in moisture which
others operated on a part time schedule. Unfilled orders caused rapid deterioration in crops throughout the district
on hand at the close of the month were in a larger volume during th~ month greatly curtailed the buying of imple.
than at the close of June or July, 1924. Stocks were ments. Since the rains, however, a better sentiment pre·
reduced during the month.
vails among both farmers and merchants. Dealers state
[!J
that the outlook appears to be from fair to good in all
~
'l1EXTILE MILLING STATISTICS
~.
sections except the central and south central sections of
July
July
June
Texas but the distribution during the next twelve months in
~
1926
1924
1926
E the latter sections will be very light.
§ Number bales cotton conaumed.... _
1,227
1,187
1,266:
There was a further slight increase in the July sales of
! Number spindles active •.......... _......
42,468
68,988
68,988 E
: Number pounds cloth produced......
661,261
490,964.
697,689:
reporting drug firms as compared to the previous month
t:J
but a decline of 2.6 per cent as compared to the corre·
sponding month last year. Reports indicate that the de·
WHOLESALE TRADE.
mand ranges from good in most sections which have bright
Seasonal expansion in the distribution of merchandise prospects for a cotton crop to very poor in the drouth
at wholesale was in evidence during July but buying gener· stricken area. Some dealers state that while July business
ally was on a smaller scale than in July a year ago, Hesi· was quiet indications point toward a good fall trade.
The demand for groceries at wholesale was unusually
tation in buying during the month was a prominent feature
in most lines of trade due to the uncertainties surrounding active during the past month. The July sales of reporting
the agricultural situation as the hot winds, high temperatures firms were not only 11.7 per cent greater than in June,
and lack of rain were causing rapid deterioration in crops. but were 10.1 per cent greater than in July last year. The
However, the rains during the latter part of July and early. increase for the current month over the corresponding month
part of August which greatly improved the agricultural last year was the largest reported during any month this
outlook created a more optimistic feeling among the year. A significant feature of the reports was that nearly
farmers and business men. Late reports indicate that all reporting firms showed a gain over both the previous
merchandise has been moving in a satisfactory volume since month and the same month last year. Prices are firm.
The July sales of reporting hardware firms were prac·
the first of August. Nevertheless, the trade situation con·
tically the same as in June but were 7.5 per cent greater
tinues spotted. There is a broad demand for merchandise
in those sections where the outlook is favorable for a good than in July a year ago. The demand for hardware appears
cotton crop, but buying is light in the area affected by to be spotted. In some of the larger cities where building
is active, there is a good demand for builders hardware
the drouth.
Merchants throughout the district are operating on a very and there has been a marked improvement in the demand
conservative basis. Retailers are buying in small quan· from the northern, northwestern and northeastern portions
tities such merchandise as will give them a desirable assort· of Texas and in scattered localities elsewhere. The demand
ment of stocks and then fill·in orders will be placed as is light throughout the area affected by the drouth.
consumer demand materializes.
CONDITION OF WHOLESALE TRADE DURING JULY, 1925
::
While wholesalers generally are anticipating a fair to ::
::
Percentage of Increase or Decrease in
::
good fall business in most sections of the district, it must
~
~
be borne in mind that the purchasing power of the district's
~
~
farmers during the next twelve months will be materially ::
::
less than it was during the past year. Not only will the
E
E
::
:
production of cotton show a large decline from last year
:
:
::
::
:
:
but the other crops will afford the farmer only meager
TEXTILE MILLING

mlll.IIIIIIIIII' ••• IIIIIII ••• I ••••• I ••••• IIII ••••••••••••••• tllll"",IIIIIIIII,II,IIIIIIIIII".I.,II'.I,111111""1'111

:

1
........ 111 ......... 111111 .... 111 ... 11111 .. 111111111111111 ... ,11 .. 11111 ...... 11111IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII[!)

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returns. Furthermore, the farmers must make large expen·
ditures for feed with which to make the 1926 crops.
The distribution of dry goods at wholesale reflected a
substantial seasonal gain but continued far below that
of a year ago. The July sales were 20.6 per cent above
those of June but were 18.3 per cent less than a year ago.
Reports indicate that buying so far in August has been on
a broad scale. However, retailers are making purchases
in small quantities to cover only nearby needs with the
expectation of making reorders as the consumer demand
materializes and warrants further buying. Dealers state
that the season's distribution will depend largely upon the
outcome of the cotton crop. In those sections where a
good crop is raised, heavy buying is anticipated but in

::

:

E

§

::

::

8,1111111111111, .. 1111111111111111111111111111111111111111111111111111111111111111IIIIIttUIIIIIIIIIIIUIIIIIIIIIIIIIIII!J

RETAIL TRADE
The July sales of twenty·four reporting department stores
reflected a seasonal decline of 25.3 per cent as compared
to the previous month but were practically the same as
those in the corresponding month last year. These stores
have been featuring "reduced price sales" on summer goods
in order to clear out their stocks to make room for fall goods
and reports indicate that satisfactory results have been
obtained.
Stocks on hand at the close of July were 3.5 per cent

MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS

5

less than at the close of June and 1.5 per cent less than at the ratio of outstanding orders to last year's purchases at
the end of July a year ago . That the department stores have the close of July was n.7 per cent as compared to 6.9
been obtaining a beLter turnover of stocks this year is indio per cent at the end of June.
cated by the fact that the percentage of sales to stocks duro
Collections during the month were seasonably slow. The
ing the first seven months of 1925 was 139.6 per cent as
comp ared to 130.9 per cent during the corresponding period ratio of July collections to accounts outstanding on July 1st
was 36.9 per cent as compared to 41.8 per cent in June and
of 1924.
Reflecting the increased purchases of fall merchandise, 37.3 per cent in July last year.
G]llIlIllllllllllllIlIttllllllllUllltllUIUlIlllIlIlIUllllllllflllllll1I1IIIltll.,IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII.IIIIIII II III I .111111111111111111111\111.11111.111111111111111111111111'111 1IIIIIIIIIIttllllllllllllllllllllllll"lIl1l1l1l1llllll1l~

=

BUSINESS OF DEPAR'rorlENT STORES
Dallas
li't. Worth
July. 1925, compared with July, 1924..........................................................
- S.4
7.9
July, 1925, compared with June, 1925 ........................................... ~. . . ... . ....
-27.7
-23.9
J an. 1st to date compared with same period last year ........... ~.............
6.7
5.8
Credit salesJlUly, 1925, compared with July, 1924..........................................................
- 4.0
7.8
July, 1925, compared with June, 1925.......................................................
-82.1
-86.8
Jan. 1st to date compared with slLrne period last year.........................
+ 9.6
+10.9
StocksJluly, 1925, compared with July, 1924..........................................................
_
.2
-13.2
July, 1925, compared with June, 1925........................................... ~. ... . .... ..
_ 4.2
_ 8.6
Percentage of sales to average stocks in

E Tota l sa1es-

§
E

+

=

:

E

:
:;
:;
:;
;:
:

!~'lffi;~;1~1Flii¥;,??:2:::~-~:::~:;;:

:; " alio of outstanding orders to lust yeur'! purchases......................................
atio of July collections to accounts receivable due and outstanding
.;,
July I , 1925................................................................................... ~.... .. . .. . ...... . ....

e ...

+
+
+

.,;.
Houston

All

+
+

7.8
-80.8
6.5

Others
Total District
- 4.4
.1
-2 0.2
-25.8
4.8
5.6

+
+

+

+12.4
-42.8
+ 9.5

=

+ .8 E
-81.9 :
+ 8.7 :
:
- 1.5 :
- 8.5 :
:

- 2.3
-22.3
+ 6.5

- 2.2
+ 1.0

E
E

:
:

+ S.9
- 2.4

l: : l: : l: : 1:: l;:; i
12.8

19.4

9.9

9.S

84.4

88.9

89.8

11.7 :
::
86.9 ~

40.0

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FINANCIAL
The volume of public spending in fifteen principal cities
of this district, as measured by checks charged to depositors'
acc~unts at banks in these cities, continued at a high rate
d?rlDg July. The volume of checks drawn against indio
vldual accounts during the month amounted to $610,366,000,
which was only three·tenths of one per cent less than the
June volume and was 16.6 per cent greater than in July,

~1111111'1'lllllllllllllllllllllllllllllllllllllfllll' 1111111111111111"111111111"1111111111111 111111 1 11'111111111111118
::
CHARGES TO DEPOSlTORS' ACCOUNTS
:

~
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or~

=1"

A.

9

II

§

il

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a

= Sa
§ Sl

.5:
.7 ~

.8::
.8::

;: 'l'e
:; 'l'u

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:;

.2 ::

~

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@

1924. While buying has fallen off in the ciLies located
within the area affected by the drouth, it has remained
active in most of the other larger cities of this district.
There was a marked expansion in the vol·
ume of acceptances executed by accepting
banks of this district and which were out·
standing at the close of July. Acceptances outstanding on
July 31st totaled $1,374,,94,2.31 as compared to $465,470.91
on June 30th.
Acceptance
Market.

The net demand deposits of member banks
in selected cities reflected a further decline
of $5,938,000 during the five week period
ending August 5th but there was a gain
of $1,795,000 in their time deposits duro
ing the same period. It will be noted that the loans of
these banks against corporate securities increased $3,068,000
whil e all other loans (largely commercial) declined
$6,394,000. Their bills payable and rediscounts with the
Federal Reserve Bank rose fro111 $1,049,000 on July 1st to
$2,355,000 on August 5th.

Condition of
Mem ber Banks
in Selected
Cities

[!].II""" ""11"""""'1 .1 1,.1.1.,',1,,1, •• 11111"'1 •• ,1, 1 ,'1 1 '111"1"111.111.,,,,,1,11.,11111.1"1,.,11111'11"11.11,11"' 11 .1.111"'1111111, •• ,1,.1,1"'1""""1.,"111111.1.111 , •• 1.111'1"1111'., •• ,1.1 1 1,111'11 •• ,.,111 ""'I""'II""""""~
§
~

_

E

AUI[. 5, 1925

~: ~~a~e!e~:ri~frar:::el.~~~::::~:::::::::::::::::~::::::::~:::::::~:::::::~:::::::::::::::::::::::::::::::::::::::::::::::::::::::
~~n"st~~~;::3kbY t~~. aG:v:re~~r:~~esobiignaCt~ons:::::::~::::::::::::::::::~::::::::::::::::::::::::::::::::::::::::.::

Ift~i~~~~:~~I~j~lr;:·Ff:I;-tI :S-:G~T;7:;·:;~"T:':~··
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:.

~

CONDITION STATIS'£rcs OF MEMBER BANKS IN SELEC'11ED CITIES

§

~~. Bills payable nnd l'ediscounts with F'cd"rnl Itescrve Bunk............. ........................... .......... ..
,Ratio of lonns" to net demnnd deposits........................................ ... .... ,.. ........ ... ... ..... .... ..
lEI,,,
"Loans include only items 4 and 6.

;:
:;

$

AUI[. 6, 1924

54,422,O~~

$44,282,Ogg

20,759,000

18,314,000

~!I:! !:! !
2,855,000
84%

il!!l!!:!!!
7,747,000
96 %

July I, 1925
$

54,077,O~~

~

~1H!H~

i

l~:~!~:ggg

The savings deposits on July 31sL of 104
banks which operate a savings department
were 1.9 per cent less than on June 30th
hut were 10.1 per cent greater than the same date last

Deposit3.

E

1,049,000;;
84% :
:;

, ....... 11 ..... 11111111111111111111111 .. 1111 .. 111111111 .. ,11111111111111111111111111111111111111111111111111111'"111 1111111111111 11111111111111111111111111111111111111 11 1111111111111 111111111 11111111111111111111 .. 111111 11111111111111111111111111

Saving~

~

'W

year. There were 24,0,331 savings depositors on July 31st
as compared to 241,178 on June 30th and 219,485 on July
31, 1924.

MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS

6

(!JI.I •• II •• II •• ,.I.II.I.I.I ••••••••••••••••••••••••••• 1.1111111111111111111.1.,.1,.11111 •• ,1",111111111, •• 1'.'I.IIIIII.I.I.llll rv llll.I.I •• IIIIIIIIIIIIIIIIII.I •• 11111111111.11.'11111.,111'1111.11111111 •••• 111111111, •••• 11111 ••• , ..... , •• 1111.1111.1""8

July 81. 1926
July 81. 1924
Number of
Reporting Number of ~mount of Number of Amount of
Savings
Savings
Savings
Savings
Banks :
Depositors Deposits Depositors Depoeits
Beaumont ....•.................. ................................. ......... ....4·
4.837
2.261.876
4.810
2.469.484
Dallas ..............•...................................... .. .......• ..............
7
46.627 16.629.912
88.426 18.010.484
El Paso ....•............................ ~ ....................... . .............•
3
16.479
6.684.412
7.042.328
17.189
12.976
4.934.487
3
Fort Worth ....•........... ............ ........................•. ..............
11.662
4.864.266
Galvcston. .......................................................... ................
3
18.491
8.461.141
11.948
7,210.678
18·
Houston ....•........................................................ .............
68.846 23.869.227
47.969 20.867.868
6
San Antonio ....• .................................... .. ......................
20.868 10.667.181
18.720
9.648.601
4
Shreveport ... _ ............ ...............•...... .. ............ ..............
22.119
9.108.996
20.808
9.964.468
6
Waco ................•....•........................................ ..............
7.891
4.607.666
6.814
8.099.406
4·
Wichita Falls ................. ................................ . .. ...........
6.742
2.761.768
6.699
1.662.098
....
68·
All other•........................................................... .... _
86.966 14.777.871
86.666 18.967.128
~

~

--

-- - - -

June 30. 1926
Inc. or Number otr-mount of [nc . . or
Dec.
SavinKS
§.avinKS
Dec.
Depositors Deposits
- 8.4
4.762
2.260.664 +
.1
+19.4
46.780 16.187.687
- 4.1
- 19.3
16.619
6.947.277
-4.4
t18.1
12.902
6.146.416
-4. 1
17.2
13.490
8.629.167
-2.1
14.8
62.900 23.817.679 +
.2
+ 10.6
20.888 10.928.846
- 2.4
- 8.6
22.086
9.466.816
-8.8
+48.7
7.886
4.642.248 + 1.4
+77.9
6.928
2.718.448 + 1.6
87.004 16.018.664
- 1.6
+ 6.8

--

104
Total •........•........•........•........•...............................
240.381 102.634.421
219.486 93.181.623 +10.1
241.178 104.647.191 - 1.9
.Only 8 banks in Beaumont. 12 banks in Houston. 8 banks in Wichita Falls. and 61 banks in all others reported the number of savlnKs E
depositors.
;

E
:
Gl .....

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8 ..........

11 ..... 11 .. 11111 .... 111111 ..... 1111 .......... 1111 .. 1111111111 .. 111 .. 11 .. 111 1 .... IUII ..... IIII .... I .. I ... , .. IIIIIIII. ~ I ...... I .. I ... II ......... II .. IIII.I.II .. 1111111 .. 1111.111 .................. 1111 ...... 11111 ...... 11111 .............. 11111118

::

:

AUGUST DISCOUNT RATES

1nate charged customers on prime commercial paper such
: as is now eligible for rediscount under the Federal
.- Reserve Act;
:

o

8

9

Dallas

(a) running 30·60·90 day.....................................................
(b) runninK 4-6 months......................................................
Rate charged on loans to other banks. secured by bilb
receivable ....................................................................................•
Rate on ordinary commercial loans running 80·60-90 dayS
secured by Liberty Bonds and certificates of indebted·
ness (not including loans to enable purchase of honda)
Rate on loans secured by prime stock exchanKe or other
current collateral
(a) demand ...........•......................•.......................................
(b) time ................................................................................•..
Rate on commodity paper secured by warehouse receipts. etc. . .......................................... ~.................... ........ .... .. ....
Rate on cattle loans........................................................................

Ft. Worth

EI Paso

:

Prevailing Rates
Houston

:

San Antonio

:i

W8.C<)

:
••

6-7 ~: : .
6.7

4-6
4-6

8
8

4%-6
41,{,·6

6-6
6-6

6-8
6-8

6-6

6·8

6·6

4'1.1.5

6

6-6

6-6

8

6·6

6-6

6-8

6·8

6·6
6-6

8
8

6-8
6.8

6-6
6-6

6-8
6-8

6-8
6-8

6-8
7·8

8
8

6.8
7-8

6-6
7-8

6-8
7·8

6-8
.••.

§:::::::

E

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The demand deposits of member banks de·
elined $7,563,000 during the five week
period ending July 29th but the time deposits of these banks showed a further gain of $1,382,000.
Their combined deposits, which stood at $749,638,000 on
July 29th, were $89,161,000 greater than on July 23, 1924.

Federal Reserve Bank on July 31st as compared to 208
on June 30th, and 363 on July 31, 1924.
Due to the reduction in holdings of bankers' acceptances,
the total volume of bills held reflected a decline from
$19,075,650.22 on June 30th to $18,709,228.4.8 on July 31st,
distributed as follows:

m
....

Member banks' collateral notes (secured by U. S. Government
obligatiolls) ..................................... ......•.......................................... $ 1.692.600.00
Rediscounts and all other loans to member banks........................ 7.701.688.68
Open market purchases (Bankers' acceptances)............................ 9.416.139.80

Deposits of
Member Banks

IItUI ... IIII .. UI .... III1 .. IU ...... I .. UIU .. UIlIlIIlIIlIU ... IIIIIIIIIIII ....... 111111111111111 ......... 11111

DEPOSIT' OF MEMBER RAN.,

I!J:E:,:::,,:o"

:

3anks in Cities Banks in Cities
Member
with a popull1- with a popula·
Banks
tion of lcss
tion of over
than 16.000
16.000
Total
Total
Demand Time Demand Time Demand Time
EJu Iy 23. 1924 ............... 602.768 167.714 237.982 47.006 264.781 110.70 8 E
: Au g. 27. 1924 ............... 610.092 160.201 242.996 46.387 267.097 118.81
: Sept. 24. 1924 ............... 662.288 160.260 276.886 46.029 286.897 114.28 1::
;; Oc t. 29. 1924 ............... 609.694 169.889 808.481 44.988 306.118 114.90 6 E
;: No v. 26. 1924 ...... ........ 641.608 168.722 816.786 43.967 326.817 114.76 6 :
: De c. 24. 1924 ... ~ ........... 670.487 168.107 822.361 41.676 848.126 116.43
: Jan. 28. 1926 ................ 660.847 160.684 820.086 44.219 840.811 116.86
: Fe b. 26. 1926 ................ 680.428 166.896 821.660 46.834 368.778 121.061:
i M ch. 26. 1926 ............... 662.862 168.780 804.469 46.132 868.408 118.64 8:
: Ap r. 22. 1926................ 686,676 166.681 292.886 47.963 848.191 117.66
: M ay 27. 1925 ....•........• 606.626 166.006 277. 146 48.771 328,481 117.28 6:
: Ju ne 24. 1926 ............• 688.601 167.218 267.148 47.978 821.468 119.24 0:
: Jill y 29. 1926 ...• ........... 681.038 168.600 261.967 47.643 319.081 120.96 7E
[!J' .. I ........ III .. IIIIIII.IIIIIIIIIU .. IIIIII .. IIIIII .. IIIIIIIII.IIU' .. IIIIII.1I1I1111.11111111 ... 1111111111.11111 .. 11'0
All

4:

1:
6:
8:

The month of July and the first half of
August witnessed a further increase in the
demand for credit at the Federal Reserve
Bank. Loans to member banks increased
$2,612,970.39 in July, and on the last day of the month
they stood at $9, 294~088.68 as compared to $21,661,506.54
on the same date in 1924. While there was a further in·
crease during the early part of August, reaching the peak
of the year at $10,825,975.99 on August 8th, there was a
subsequent decline and the amount stood at $10,014,726.44on August 15th. There were 262 banks borrowing from the

Operations of
the Federal
Res'erve Bank.

'rotal bills held...........................•......•............................ ...............$18. 709.228.48

Federal Reserve notes in actual circulation, which stood
at $38,089,770 on July 31st, reflected a further seasonal
decline of $4,22,085 during the month and were $1,588,780
below the actual circulation of these notes on J ul y 31, 1924.
The reserve deposits of member banks on the last day of
July amounted to $55,075,187.54 which was $1,613,425.85
less than those on June 30, bUL $6,581,065.35 greater than
on July 31, 1924.

FAILURES
A furtller marked improvement occurred in the business
mortality rate of the Eleventh Federal Reserve District duro
ing July. The defaulting firms were fewer in number than
in any month during the past five years, and, with the exception of July, 1924, the volume of indebtedness involved
was smaller than in any month during this period. There
were 33 defaults during July with liabilities aggregating
$350,729 as compared to 4.4 failures in June with a combined indebtedness of $536,229, and 40 insolvencies in July
last year which owed $242,424.

MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS
PETROLEUM
Although there were 15,148,457 barrels of crude oil produced in the Eleventh District during July as compared
to l4.,982,080 barrels in June, due to the thirty-one day
month, the daily average production during July showed
a decrease of 10,743 barrels from the June average. Drilling operations were active during the month, as is evidenced
by the fact that there were 713 wells completed of which
465 were producers and yielded 106,960 barrels of new
production as compared to only 528 comp letions in June
which included 335 successful wells which netted 87,832
barrels of initial flow.
All Texas fields with the exception of the miscellaneous
group registered declines in daily average production for
july as compared to the previous month, but these decreases
Were very small in all fields except East-Central Texas,

m
.........

1======.=

where the Wortham field wells are rapidly declining in
production and drilling is practically at a standstill. The
Reagan County Big Lake field and nearby wildcat operations continue to be the center of interest in Texas. The
daily average production of oil in Louisiana continued to
increase in July as compared to the previous month, when
an average of 61,9< barrels per day was produced as
j.5
against 61,160 barrels per day during June.
Crude Oil
Prices.

During July a change was made in the
gravity scales affccting all grades of Texas
crude oil, with the exception of Texas
Coastal oil, which carried a slight in crease in prices. The
price on Texas Coastal crude was reduced 25 cents per
barrel during the past month. On all grades of Louisiana
oil the posted price was increased 15 cents per barrel
during the period from July 8th to August 12th.

,I., ••• IIII.III •• ' •• IIIIIIII •••• II.IIII • ••• '111 ,1 '1'1'1"'1"1'111111111" 11111'111 11"1"11111111111111111111111111' '- 111111111111111111111111'11 11111.1III'Illlllt'IIIIIIIIIIIIIIIIIII'I'11111111111 ' 1'11111111111"1 . 1.1111111111111'.11111 11

§

[!]

~~~~~::~.!~ T~; ; ·~-: : : : : : : : : : : ·.: : : : : : : : : : T~ 10: .r~7 8~1 ~8: '~ :;~7;~:" 0:1~0:~e ~ :.16~; :8ON Ti:ii:::;?:'" A~:!f:~.:;. T~;:;:~:;:;'g;::-~lm

East-Centrnl TexM .........................................................
T-exos Constnl ...................................................................
Miscellnneous f ields ........................................................,.

E

7

NorJ:°~~·u~i:::

8.616,860
2.909.890
1.688,070

117.211 Dec.
06.980 [nco
62.769 [nco

200.710 Dec.
80.970 Dec.
206.307 Inc.

:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::

l~:~~~:m

4~~:m

l~:~:~:m

4~~:~~~ ~~~:

~~:m P:~:

Total. 11th District....................................................

15,148,467

488,660

14,982.080 1

499,408 Inc.

166.377 Dec.

10.266
617
4.921

11,~~~::
10.748

~

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8'·1.".1 .•.
;:

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JULY DRILLING RESULTS
ComPropJetions duceTB
Field
867
222
North Texas .............. _.....................
98
69
Centrnl-West Texns ...................... .
29
24
Enst Centrnl 'I1exns ....................... .
86
66
Texns COftstal .... _.......................... .
10.
9
Enst Tex6s .......................................
27
27
Miscellnneous fields ...................... .
68
18
Texas wildcnts ...._.........................

mll.IIIII.IIIIIIII.I.,111111111111111111111111111111111""111"111'11111111111'1111111111"'1111"""'1"1IIIIIIIIIIII[!)

;:

::

CRUDE OIL PRICES

FnilInitinl
urea Production
186
20.966
29
19.820
6
8.776
20
87,421
1
46

Aug. 12 Aug. 16
TEXAS1926
1924
Texas Constnl ...~ ................................................... _................... $1.60
$1 .86
North and Central Texas (44 gravity and above) ............ 2.68
•

"'8;895
2.846

Total.. 'I1exas ...........................
North Louisinna .......................... .

664
49

429
S6··

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18

08.211
18.749

§ June totnls. District........................

71S
628

465
886

248
198

106.960
87.882

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·Gas wells. ..Includes 2 gns wells.

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LUMBER
Improved trade conditions at the pine mills of the
Eleventh District were evident during July, as is shown
from the increased production, shipments and orders for
lUmber. Orders received at the reporting mills during July
called for a total footage of lumber which represented 93
per cent of the normal July production whereas the June
orders called for only 84, per cent of the month's normal
output. The actual production of I umber during July increased to 8 per cent below normal from 10 per cent below
normal during June. The amount of lumber shipped from
the mills during July was 3 per cent below the amount
produced, as compared to shipments 4. per cent below
production during June. Stocks held at the mills at the
end of July were 17 per cent below the normal figure for

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Aug. 12 Aug. 16
L OUISIANA1926
1924
Cnddo (88 grnvity and ubove) .......,............. .. :.. ...... ................ 2.20
1.S6
Bull Bayou (S8 grnvity a nd above ) ........ ............................ 2.00
1.80
Homer (S6 gravity nnd nbove) ......................................... ... 1.96
1.S6
Haynesville (S8 gr. nnd nbove) ............................................ 1.86
1.26
1.86
De Soto Crude .................................. _....................................... 2.06
·Prices for August 12. 1924. not nvnilnb le on a compnrnble
bnsis.

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that date, while on June 30th the actual stocks held were
12 per cent below normal.
Unfilled orders held by the 47 reporting mills on July
31st were for 56,574,,393 feet of lumber, as compared to
orders for 52,758,807 feet held by 48 reporting mills at
the close of June.
Prices are firm.

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JULY PINE MILL STATISTICS
Number of reporting mil1s. ...................... ,..............

47

~h?:;:,~~'::: ::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::l~~:i~~:m ~:~.

Orders ............................................................................ 108.160.000
Unfilled orders, July Slst........................................ 66.674.398
Normal production ............................................ .. ...... 111.266.906
Stocks. July Slst.......................................................... 272.961.712
Normnl stocks .......................................... .. ................ 329.618.088
Shipments below production .................................... S.011,204
Actual production below normn!.... ..................... .. 8.482.176
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feet
feet
feet
feet
feet
feet : 80/0
feet= 80/0

3tocks below normn!... ............................ .. ................... 66.666.876 feet= 17%
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BUILDING
R BUilding activity during July in the Eleventh Federal but represented a decrease of 4.1 per cent from the $7,682,. eserve District, as gauged by the valuation of permits 043 valuation of July, 1924., permits. The total valuation of
ISSued at twelve of the larger cities, was maintained at permits issued from January 1st to July 31st this year is
~ra?ticall y the same rate as during June, permits issued
unng the month being valued at $7,363,302, three-tenths 7.0 per cent greater than the total for the corresponding
of one per cent less than the June valuation of $7,384,697, period during last year.

MONTHLY REVIEW OF BUSINESS AND INDUSTRIAL CONDITIONS

8

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BllLDlNG PERMITS

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CEMENT
There were 454,000 barrels of Portland cement produced 'cent greater than those made during June, and 4.8 per cent
at the Texas mills during July, which represents an increase greater than shipments during the corresponding month last
of 16.7 per cent over the 389,000 barrels produced in June, year. Stocks on hand at the end of July were 3.7 per cent
and was 11.0 per cent above the July, 1924, production of less than June 30th stocks, and were 12.1 per cent below
409,000 barrels. Shipments from the mills were 4,.3 per the July 31, 1924, stocks.
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PRODUCTION SHIPMENTS AND STOCKS OF PORTLAND CEMENT

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SUMMARY OF NATIONAL BUSINESS CONDITIONS
(Compiled by the Federal Reserve Boord,

Producton in basic industries turned upward in July after
a continuous decline since January, wholesale prices advanced further and the distribution of commodities continued in large volume.
PRODUCTION
The Federal Reserve Board's index of production in basic
industries, which makes allowance for usual seasonal variations, advanced by about two per cent in July to a point
nearly 20 per cent above the low level of a year ago. Increased output was shown for lumber, coal, and cement,
cotton consumption declined less than usual at this season,
while the output of the iron and steel industry, and the
activity in the wool industry continued to decrease. In
nearly all the industries activity was greater than in July
of last year. Among industries not represented in the index
the production of automobiles, rubber tires, and silk continued to be large.
The volume of factory employment and earnings of industrial workers declined further in July, seasonable increases in the clothing, shoe, and meat packing industries
being more than offset by decreases in the other industries.
Building contracts awarded in July were in only slightly
smaller volume than the exceptionally large total reached
in June and the total for the first seven months of this year
exceeded that for any previous corresponding period. Estimates by the Department of Agriculture indicated a less favorable condition of all crops combined on August 1 than a
month earlier. Expected yields of corn, wheat, rye, tobacco,
and hay were somewhat smaller than in July, while the indicated production of oats, barley, and white potatoes was
larger. According to present indic?tions the yields of all
principal crops, except corn and barley will be smaller
than last year.
The mid August cotton crop estimate was 13,990,000 bales
as compared with a forecast of 13,566,000 bales on August 1st.
TRADE
Freight car loadings during July were larger than in

8S

of August "5, rQ!25.)

June and exceeded those of any previous July and weekly
figures for August indicated a continued large volume of loadings. Sales at department stores showed less than the
usual seasonal decline in July and were 3 per cent larger
than a year ago, and mail order sales were considerably
above those of July, 1924,. Wholesale trade continued at
the June level and was 6 per cent above the corresponding
period of a year ago.
PRICES
Wholesale prices advanced further by nearly 2 per cent
in July, according to the index of the Bureau of Labor Statistics. Prices of farm products and of miscellaneous commodities rose over 4 per cent, reflecting chiefly increases in
livestock and rubber, while in the other commodity groupS
price changes were relatively small. The general level of
prices in July was 9 per cent higher than a year ago, the
rise being chiefly in agricultural commodities. In August
raw sugar, potatoes, silk, metals, and fuels advanced, while
grains, leather, hogs, and rubber declined.
BANK CREDIT
The demand for commercial credit at member banks in
leading cities increased in August, and the volume of commercial loans on August 12, was larger than at any time
since the middle of May, but was still considerably below
the level at the beginning of the year. Loans on securities
increased between the middle of July and the middle of August, while the banks' investments showed little change for
the period. Discounts for member banks increased at all
the Reserve banks in recent weeks and the total on August
19th, was the largest in more than a year and a half. The
Reserve banks' holdin gs of securities and bills bought in
the open market continued to decline, but the total earning
assets in the middle of August were near the high point for
the year. During the latter part of July and the first half
of August conditions in the money market were somewhat
firmer. The prevailing rate on prime commercial paper,
which had remained at 3 3-4, to 4 per cent since early in
May, advanced in August to 4 1-4, per cent.