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:11111111 .. 11111111111111.11111 .... 1 ........................... 11111 .................................. 11111 ...................................................................... 1111 ....................... 11 .......................................... " ... " : ~1I .. 1I .. 1I ...... II .. IIIIIIIIIII .. IIIIIIII ..... ' .... tI .. I .... IIIIIIIIIIIIII .. II.11I11I11I1I 11111111111111 .. 1 ........... 111111 ................ 11" ......... 111111 ........................... 11 ........................... 11.1111 ..................... 11 ... :: MONTHLY BUSINESS REVIEW OF THE FEDERAL RESERVE BANK OF DALLAS c. C. WALSH, CHAS. C. HALL-W. J. EVANS, Chairman and Federal Re.erve Agent A•• I.tant Federal Reserve Agent. (Compiled August 15, 1927) ~ IIIIIIII.IIIIIII.II .... IIIIIIIIIIIIII.I .. IIII.IIIIIII.II.IIIIIII.II'II '11'11'"11.111111.1"11111111.11.1111111111'.111111111.11.111'"'1111111111'11'1111111111111111.,11111111111.111.,11.111111I1I.IIIII1.IIII.' •• IUII.IIU.IIIIIIUIIIIIII.III.IIIIIII.r Volume 12, No.7 Dallas, Texas, September 1, 1927 This copy released for publi. cation in afternoon papers Aug. 30 DISTRICT SUMMARY THE SITUATION AT A GLANCE Eleventh Federnl Reserve District July June Inc. or Dec. Bank debits to individunl accounts (nt 16 citie8 ) ......................................................................................... $672,901,000 $675,129,000 Dec. .8 % Department .to,·e 8ale. ............................................................. .. .............................................................................. Dec. 27.4 % Res erve Bank loans to member ba nks lit end of month ............................... ...................................... .. _...... .. $ 10,448,587 $ 6,220.655 Inc. 68.0% Re. erve Bank ratio at end of month.... .................. ................................................................ .. .......................... 58.8 % 68.3 % Dec. 4.5 points Building permit valuations at lal'J~er centers .... .....................................................................·.. ........................... $ 6,774,882 $ 8.252,819 Dec. 17.9% Commercial failures (number) ....................................... ............................ .............................................._ ............ 27 59 Dec. 54.2% Commercial failures (liabilities) ........................................................................................................ _.................. $ 273,924 $ 1.565,260 Dec. 82.4 % • • Oil production (barrels)............................................................................................................................................ 20,606,806 20.158,851 Inc. 1.7% :: :: Lum ber orders at pine mills (per cent of normal production)................................................................... 72 % 67 % Inc. 6 points E [ij ,......... UI ..... UU .............. UI .... III .. II ..... IIIU ... I .. IU ... IIIU .. II ...... 1111111 ...... 111111111111111111111111.1111111111111111 •• 1111111111 .. 1111 .. 11 ••• 11 ...... "1 .. 11I.1I •• II .. IIIIIU ........................... II ............ UIlIIlIl'.(EJ The marked rise in the price of cotton during the past thirty days was the overshadowing development in business and industry in this district. The increased value of the district's principal commodity together with the prospects for the largest feed crop produced in several years indicates that the returns from this year's crops will be larger than in either of the two preceding years and will provide the district's farmers with a large debt-paying and purchasing power. The corn, grain sorghum, and hay crops promise a substantially larger yield than in 1926, and the indicated production of several of the minor crops is likewise above ~hat of a year ago. The condition of the cotton crop is llTegular with some fields indicating the best yields in several years but with others promising only a very small production. As a general rule the old cotton has fruited ~vell but the young cotton has been seriously injured by the Insects. A very large portion of the district's cotton terri· tory is heavily infested with weevils and other insects and their activity is rapidly increasing. Root rot has already ~aken a heavy toll in some sections and appears to be spreadlng. These factors together with the lateness of the crop in certain sections render the outcome of the crop very uncertain. .The rains which fell over the major portion of the dis· tflct's range territory during the past month brought about a further improvement in the physical condition of ranges and livestock. There is now ample pasturage on most of the ranges and many classes of cattle are fat and moving to iarket. Market prices are being sustained at near the high evel reached in July. Despite the fact that the period is at hand when loans usually reach a peak, the demand for credit continues light, deposits have been well sustained and there has been an easing in money rates. Deposits of member banks declined only $5,561,000 between June 22nd and July' 27th, and on the latter date were $26,633,000 greater than on July 28, 1926. While Federal Reserve Bank loans to member banks on August 15th were $4,528,148 larger than a month earlier they were $7,703,795 less than on the corresponding date last year. Effective August 12th, the Federal Reserve Bank of Dallas reduced its discount rate from 4 per cent to 3% per cent. The business mortality rate in this district reflected a marked improvement during July, the number of failures being the smallest in mote than seven years. There was only one month during this period in which the indebtedness of defaulting firms was smaller. The July distribution of merchandise in wholesale channels reflected a seasonal expansion as compared to the previ· ous month but continued on a smaller scale than a year ago. Late reports indicate that business during the first half of August has shown a considerable improvement and that merchants are optimistic regarding fall trade. Midsummer quietude was evident in department store trade, there being a substantial decline in sales as compared to both the previous mQnth and the same month last year. Construction activity as gauged by the valuation of per· mits issued at fourteen principal cities reflected a further marked decline as compared to both the previous month and the same month last year and reached the lowest level since last November. While the production of lumber and cement was less than in June, shipments were slightly larger. CROP CONDITIONS . Timely rains during the past month have benefited growIng crops over a large area of the district and resulted in a considerable improvement in crop conditions in some sec- tions. Prospects now point toward a fair to good yield for most crops and with a higher level of agricultural pricei. obtaining, indications are that the net returns to the farmers This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) MONTHLY BUSINESS REVIEW 2 this year will be greater than during either of the past two years. While the corn crop in South Texas and in scattered localities elsewhere deteriorated somewhat from the lack of rainfall, improvement in this crop occurred over a large area of the district with the result that prospects on August 1, pointed toward a larger yield than was indicated a month earlier. The crop in most sections is now practically matured. The average condition of the Texas crop on August 1, was reported as 84 per cent of normal and indicated a yield of 114.,931,000 bushels which is the largest production in any year since 1922. The condition of tame hay in Texas did not show the usual seasonal decline and on August 1, the indicated yield was 1,491,000 tons as against a production of 1,24.0,000 tons in 1926. Although much of the grain sorghum was planted late, the crop generally is making good progress and promises a satisfactory yield. The indicated production of the Texas crop on August 1, was 67,376,000 bushels as against a production of 48,276,000 bushels last year. The development of the cotton crop has varied considerably in several sections of the district. In South Texas the dry weather forced early maturity and picking is in full swing. Weevils became active earlier than usual and have increased rapidly in some localities. Yields generally are falling short of earlier expectations. In North West Texas the crop, although late, is making good progress. As a rule, stands are fair and the fields are well cultivated. The rains which have fallen during the month have greatly benefited the crop and some counties promise better yields than in several years. However, due to the lateness of the crop, an early freeze wou ld materially reduce the yield. In other sections of the district, conditions are irregular. As a general rule the early planted cotton has fruited well but the late cotton has suffered considerably from the depredations of the weevils and other insects. In Central Texas and parts of North Texas the root rot has taken a heavy toll and is increasing. There have been numerous complaints regard· ing shedding which resulted from the high temperatures as the wet weather had prevented the development of taproots and the plant was unable to withstand the hot weather. The August 1, report of the Department of Agriculture stated that the weevil infestation was the greatest since 1923, and there has been considerable activity of the boll worm and leaf worm. Recent reports indicate that the damage resulting from insect activity was greatly increased during lhe first half of August. While it is yet too earl y to determine the outcome of the crop, it must be borne in mind that lhe insect activity constitutes a real menace. feed throughout the district. There seems to be a strong tendency to cull out dry cows and to hold young heifers and calves for restocking purposes. Movements and Receipts of all classes of livestock at the Prices Fort Worth market during July were considerably smaller than in the previous month but the arrivals of calves and hogs were in larger v01ume than a year ago. Cattle prices, after reaching the highest level of the year during the second week in July reacted somewhat during the third week but regained some of the loss toward the close of the month. Prices at the end of July on most classes of cattle were higher than a month earlier. Slightly lower values, however, obtained during the first half of August. Following the low levels recorded during June, hog prices have reflected a steady advance. Since the passing of the heavy marketing season for sheep and lambs, prices have been firm and are gradually working to higher levels. (ii].lllfllIlIllIlIlIlIlI .. IU ...... UIlIlII.IIIIIIIIIIIIIIU.UI •• ,11111I1I1I111I1IIIIIIIIIIIII ..... ,.I •• IIIIIIIIIIIIIIII I :;J E !~~: : § F OR'I1 WORTH I"IVESTOCK RECEIPTS {till il:H! tti!! ll:if! l!:lii I Gl IIIIIIIIIIII.IIIIIIIIIIIIII.III.I'1111111111111111111111111111111111111111111"11.111 •• 11111 •• 1111'11111.1111111.11111'l:J A I •• I'.IIIII'.I."III ••• IIIIIII.III.I'IIII.I.I •• I"III1111111111111"11111111'111111111111"'11""'111"'11tlll"'f'II 'm COMPARATIVE TOP LIVESTOCK PRICES Ju ly 1927 Beef s t eel's .................................. ......... ............. $11. 25 Stockel' steers .. ............._................................. 8.25 Butcher cows ...... ............. .......... ................. ...... 7.10 Stocker cows ................................. ..................... 5.60 Cnlves ............ ................................. ..................... 11.00 Hogs ................................. ..... ................................ 10.90 Sheep ................................... ...... ........................... 8.00 Lambs ..._............................................................... 12.50 July 1926 $ 9.90 6.25 9.00 14.20 7.75 13.50 June 1927 $11.00 8.20 7.00 5.50 10.75 9.30 8.00 13.00 Cotton Movements Receipts and exports of cotton at the ports of Houston and Galveston during Jul y were on a small er scale than in the same month last year. For the season just closed however, both receipts and exports showed a very large increase over those of the previous season and stocks on hand at these ports on July 31, were small er than a year ago. Foreign exports of cotton (including linters) during the past season totaled 11,183,938 bales, reflecting an increase of 37 per cent over those of the previous season. The domestic consumption of cotton during the past season amounted to 7,202,724. bales as against 6,455,852 bales durin g the previous season. rnt. t I. t '111' III " I '""'11111111," "'1111""11"'11111111'11'11111111'1' 111111.1.111'11 f 1'11111111111 .... 111. '11 .11 fll Light to heavy rains fell over practically all of the district's range territory during the past thirty days with the result that both ranges and livestock are now improving steadily. There are only a few scattered localities which have not been favored with moisture. The drouthy condition which existed in much of New Mexico and Western Texas has been relieved, the suppl y of stock water has been replenished, ranges are mostly green and livestock are gaining in flesh in response to the better pasturage. Reports now indicate that livestock generally are in fair to excellent conditi on wilh many classes now fat. With a few more rains in those seclions whi ch have suffered from dry weather there will be an abundance of pastl1l'age and winter 0::;::::::::::: co'mON MOVEMENTS THROUGH THE PORT OF GALVESTON LIVESTOCK July 1927 R eceipts .............................. 84.982 Exports ...................... .. ........ 184.984 Stocks July 31.................... July 1926 August 1 to July 31 This Senson Lnst Senson 87.891 154.887 8.8'16.641 8.848.964 146.029 3.070.634 2.967.126 149.926 I!JUIUII ... IIIIIIIIII.IIIIIIIIIIII.IIIIIIII .......... I ... I.II.IIIII'.' .... 11 •• , ••• U ..... IIII .......... II.IIIIII ....... IGl 0.11.111 ..... :: I :: 111111111 ......... 11111111 .. 1111111 ............. 1111 ..... 1111111111111 .. 11 .... 1.... IIIIIIIIIIIII .. II ...... GALVESTON STOCK STATEMENT : ~f~~~8010 .rf~~::: I : ::::!!! ::::::~ J For Grellt Britain............ ..................................... .... For France .... .............................. .. ............................ IfF,:~~~~~~: :: i~ 900 600 : 1EI1 ••••• I •• III I III.II •••• III •• •••• I • ••••• I • ••• , •••••••••• 1•••••••• 1 ••• 1•••••••• 1••• 11 • • ••• 111111.1 •• 1 ••• 1.1' ••• I •••••••• ,I!J MONTHLY BUSINESS REVIEW m .... 8 I .. . ... . ...................... I ••••••••••••••••••• , •••••••••••• , ••• 11 ...... , •• ,11, ••• ,., •••••••••••••••••• 11 ••• ,1 ••• ' ...... . .. , ••• ,1, •• ,.,11 •••• ,11 ••••••••••••••••••••• 11111 ••••••••• 111 •••••••• 11 ••••••• 1, ••• ,111 ••• 11 .. 11 .......... 111.1 ......... ~ '9 ~ COTTON CONSUMED AND ON HAND ~:! ~'"" m~ _ _ _ _ .!!.~:!;:~~~~~:.~: .!.~!o~,":~t:~ I:~ "".. Cotton on ha nd July 31 : ( •• ) In cons uming establishments................................ (b) In public storage und compress es...................... : g 881.885 1.498.572 624.845 1.708.461 1.404.858 1.822.671 1.096.647 1.986.918 : E [::J III •••••• III.I •••••••••••••••••••••••••••••••••• , •••• , •• " •• 11 ••••••••••• , ••• ,.,11 ••••••••• 11.,111111 • • • • ,1 ••••••••• ,11'11 11 ••• ,11111 •• , •••• ,1, •••••••• 1••••• ".,1IIIIII ••••• IIIIII",,'I.IIIIII.,.,I •• IIIIIIU'.I.III .............................. I •• II •• 8 .... 1111111 .. 1111 ...... 1111 ................ 1..... 1111111111 ............... 11111111 .. ,111,1111111111111 ..... ........... ,~ COTTON MOVE MENTS THROUGH THE PORT OF HOUSTON ~ ~ July 1927 ~~~o:;,:c~!.~ ~ .... :::~::::::::::::::: ~~:m July 1926 ~~:m ~:m:~~r Stocks July 31.................... 8" .......... ~ August 1 to July 31 This Senson L ast Seas on 179.825 ~ ~:m:~~~ ~ ~ 22 6.686 11111111111111111111111111111 .. 111111 ... 11111 .............. 1111111111.1.11111 ........... 1111111.11.111111 .. 0 8. 1 .. ""1 ..... 11111111 .... " .... 1111 .. 1.. 1111111111111111 .. 111.11111.11111111111 .. 111 ... 1111111111111111111111111 1 1111 · 8 : E SEA SON'S RECEIPTS, EXPORTS. AND STOCKS AT ALL UNITED STA'JlES PORTS ,.I ••• I •• I.II.III •••••• I ••• IIII.I •••• III.II'I ••• 11 l'IIIIII'ltl'I'III'ltlll""llllllllfl'IIIIIII~'IIII" : SPOT COTTON PRICES (Mid"'", S q,:,;,.". >G'',.. 1_ New YO"k ...................................................... 18.96 ~ rEl .• ~~~:t~n " ::::::::::::::::::::::::::::::.::::::::::::::::::::::::::: l~:~~ Galveston ...................................................... ~ 18.86 I __ g 19.06 ~ While the movement of cottonseed products from report· ing cottonseed oil mills in this district was small in July. the average prices received for these products .reached the hIgh. est level of any month this year. Crude 011 sold at an average price of $ .0813 per pound as compared to $ :0777 per pound in June and hulls at $5.63 per ton as agamst $5.00 per ton in the 'previous month. The average pri?e received for linters increased from $ .0245 per pound m June to $ .0268 per pound in July. With the exception of April m.'I'I'III •• III.I •• II ••••••••• I ••• I.I •••• I •••••• , ••• 11.11., ... 1 ••••••• 111.1 •• 111.111'11.1 •• ' •• 1 •• 111.'.11.1.1I •• IIIII •• II!) : ~ STATISTICS ON COTTONSEED AND COTTONSEED co::a:fl~: (~~~)~~. Cottanseed crushed (tons ) .................. C'(ttonseed on hand T>~"d;~~'~~. Tb~i:rtr.;ri;~ 1.941.811 1.898.807 6.874.694 1.918.958 1.408.047 11.858 6.801.911 88.896 . 5.558.860 5.658.248 28.249 § ::1: : ~ ~: _ Cake and .................... 587.048.264 894.454.000 1.886.886.168 1.611.689.000 : ~:_ Cru~~sJiI" meal pro- 88.016 ii~;;;j~~eii"" (lbs.) : ~_ : :: duced (tons ) ...... 888.219 Hulls produced 670.698 L .(tons ) .. .................. In tera produced (600-lb. bales )...... 814.808 Stocks on ha nd July 81 : oil (Ibs.) .... 2.662.217 ~ g"Udo : L inter s \ 500-lb. bales ) .................... i R1~!~n:~:~~·~~:~ : : : : : ~g:m It.... 10.191 667.000 2.888.104 2.688.000 896.000 1.862.408 1.541.000: 267.000 1.087.084 1.048.000 647 .000 4.847.1 77 1.903.000 § 10.000 49.127 68.000 J, E __ : :: ~~:~~~ 1~1:m l~~:~~~; :: "" .. 1 ........ 111 ... 111111111 .. 111 ... 111111111111 ... 11111111111111111 .... 1111 .. 1111111111I.II" .... IIIIIIIIIIIII'L!J § TEXTILE MILLING : COTTONSEED PRODUCTS 1 :1 _ J'Illy. Producrta Shipped 2.761.050Ibs. 6.188 tons 2.802 tons 2.035.712 Ibs. § ~~:~~ g 16.90 : § 1927 , ~ Average p r ice :: F. O. B. Mill g Orude 011 ...................................•......•... $ .0813 per lb. § Oake and meal... ............................... _ 32.89 per ton g Hulls ......................... ............................. 6.68 per ton E : Linters .................................. _............_ .0268 per lb. : [!)1I1 .. UIlI .. '"IIIIIIIIIIIIU ...... I ........ II ....... U ....................... IIII .................... I .. UU .........[!) 19.40 18.6'1 i~:~~ COTTONSEE D PRODUCTS SIDP PED AND AVERAGE PRICE RECEIVED :: UIIIIIIII'I'.IIII.IIIII.I •• IIIIIIII'IIII •• IIIII •• 1111'111."1.1111 •• 1.... 1 ....... 1111111111.111.11.11111111II"II'III!) :: :: 11111111111 18 A"'~\W 17.06 16.67 § New Or lenns .......... ............... .. ...................... 18.61 g @•• II'.I.II •••••••• III.II.II.IIII •••• • •• I •••••• II.111111'111111"11"111'1111'111'11111'1111111111""'111'1'IIIIIIIII' II!] g Aug ust 1 to July 31 This Season Last Season Receipts ............................................................ 12.902.055 10.087 .608 Exports: Great Brit ain ... _........................... 2. 682.638 2.285 .680 France .............................................. 1.021.662 91 6.4 12 Continen t ........................................ 5.488.776 8.511.512 Japan·China ............................. ..... 1.869.128 1.246.2 61 Mexico ............................................ 18.147 48.197 Total foreign ports ..._................. l0.970.261 8.007.967 Stocks a t all U. S. ports July 81............ 923.4 20 688.961 rn ... [!J during which month a small decline occurred, the average price received for cake and meal has shown a steady monthly increase since January and amounted to $32.39 per ton in July as against $32.14. per ton in the previous month. In comparison with July, 1926, the average prices received fo r pr oducts shipped in that month are as follows: Crude oil $ .1268 per pound; cake and meal $28.42 per ton; hulls $8.1 1 per ton ; and linters $ .0370 per pound. There were 2,943 bales of raw cotton consumed at textil e mills in this district in July, as compared to 3,242 bales in June and 2,64.0 bales in July, 1926. Spindle activity was th e same as in the previous month but greater than in the same month last year and production of cloth at these mills, although less than in June, showed an increase over July a year ago. Orders on hand at the close of! the month were sli ghtly larger than a month earlier and substantially above those recorded a year ago. Stocks on hand on July 31st were less than on both June 30th this year and July 31,1926. 1:_; ...... · ........·· .......... · .. g .·.. . ;:~~;; =;~;;~~. ;;i~~:;~;~~;~ ~~~: ·'''::_1 .. Numbe.· bales consumed.......................... Number of spindles actlve.......... _............ 75.020 Number pounds cloth produced .............. 1.288.729 2.640 71.020 1.108.868 3.242 76.020 1.505.609 1!I1 .. IUtlllllllllllllllllllll'.U ....... IIIIIIIIII ....... IIII.IIII .... IIIIIIII .. IU ....... " ..... IIIII.llIlIltllI.lllIl l § £!] WHOLESALE TRADE Seasonal expansion in the demand for merchandise in wholesale channels of distribution was evident during the past month. Sales in all lines except groceries were larger than in June, ranging from 1.6 per cent in the case of drugs to 34..2 per cent in the case of farm implements. Dry goods, however, was the only line in which sales exceeded those of the corresponding month of a year ago. Late reports indicate that business during the first half of August has shown considerable expansion and that merchants generally are looking forward to good fall business. Despite this opti. mism, however, merchants are proceeding cautiously and in most instances, are awaiting more definite information regarding the outcome of the cotton crop before making commitments in excess of nearby needs. Renewed activity in the demand for dry goods at wholesale was noticeable during July and the first half of August. The July sales were 26.0 per cent greater than in June and 13.0 per cent larger than in July a year ago. The opening of the fall marketing season at the principal distri- MONTHLY BUSINESS REVIEW 4 buting centers early in August brought many merchants to the markets and buying is reported to- be heavy. 'While merchants are buying a considerable volume of merchan· dise for forward delivery due to the improved outlook for fall business and the rising market on cotton goods, they are following a conservative buying policy and are limiting commitments well within the prospective demand. While collections have continued slow, considerable improvement is expected as soon as the cotton crop begins to move in substantial volume. Sales of farm implements reflected a gain of 34.2 per cent as compared to the previous month and were only 10.5 per cent less than in July last year. Despite the recent im· provement in sales, business generally remains considerably below normal as dealers and farmers are withholding purchases until more definite information regarding the out· come of the cotton crop becomes available. Nevertheless, a spirit of optimism prevails in most sections and business is expected to show considerable improvement during the fall months. Prices remain generally steady. The demand for hardware showed a gain of 9.5 per cent as compared to the preceding month but was 8.4 per cent less than in the same month last year. The improvement appeared to be fairly general over the district. Collections remained generally slow. Sales of reporting wholesale drug firms during July reo flected a gain of 1.6 per cent as compared to the previous month but were 4.8 per cent less than in the same month last year. Dealers report that business generally has been slow but the trade is becoming optimistic and that the outlook for fall trade is encouraging. Collections were less than in either the previous month 01' the same month last year. Prices showed no material changes. The J ul y sales of groceries were 5.9 per cent less than in June and 7.6 per cent less than in the corresponding month last year. The buying demand was reported to be fair for this season, and the outlook generally is for fair to good business during the fall months. Collections showed a marked decline as compared to the previous month. Prices continue steady. 8.1I .......... IIIIIIIIIIIII ......... " .. IIII .. IIII .. ' ......... IIIII .......... llllIlIlIlIlI1I11111111111111111111111111.l!l ~ CONDITION OF WHOLESALE TRADE DURI~G JULY, 1927 Percentage of Increase 01' Decrease m: ~:.: E : :." : •• :.: E • : - Net Sa lesJuly,1927 compared with July, June , 1926 1927 Groceries ..................................- 7.6 - 6.9 Dry Goods ................................ +13.0 +26.0 Farm Implements ..................- 10.5 + 34.2 Hardware ................................- 8.4 + 9.6 Drugs ........................................- 4.8 + 1.6 - StocksJuly,1927 E compared with :: July, June, 1926 1927 : - 10.8 +16.P ::: - 1.1 +16.9 - a.8 - 5.3 E +.9 + 4.3 • - 8.9 - .9: 1!l.1I1111 ..... IIU .. IIIIIIIIIIIIIIIU ...... 'IIIIIIIIIIIIU .. UItIIIIIl ..... IIIIIIU •• 1I1I1.U.UIIUUUIIIIIIIIIIIII1II ,1!1 RETAIL TRADE Summer quietude in department store trade was evident during July. Sales reflected a seasonal decline of 27.4 per cent as compared to the previous month and were 7.7 per cent less than in the corresponding month last year. Sales during the first seven months of the year have averaged 1.0 per cent less than during the corresponding period last year. Stocks on hand at the close of July were 5.3 per cent less than a month earlier and 7.0 per cent less than a year ago. The percentage of sales to average stocks during the first seven months of 1927, was 156.4, as compared to 14.7.8 during the same period' last year. The ratio of outstanding orders to last year's purchases at the end of July was 9.3 as compared to 4.0 at the end of June and 8.5 at the close of July, 1926. Collections showed practically no change as compared to previous month but were slightly less than a year ago. The ratio of J ul y collections to accounts receivable on July 1st was 33.5 as against 33.7 in June and 35.6 in July last year. 811111111111 .................... 1111111111111111111111111111111111111111111111111111 .. 11111111111111 ... 11111.11111111111111111111.. 11111111111 .......... 1111 .... 111111I1I1I1I11I1I1I1.IIIIIIIIIIIIIIIIIIIIIIII"UII"11111111I11I111I1I1111111111111111II1 ~_ ~: July, 1927, compared with July, 1926........................................................ July, 1927, compared wi t h June, 1927........................ ............................... : January 1 to date, compnred with same period last yenr.... .......................... - Credit Sales ~ July, 1927, compa red with July, 1926........................................................ July, 1927, compared with June, 1927..................................................... ... § January 1 to date, compared with same period last year............................ - Stocks' § July, 1927, compared with July, 1926.......................... .. ............................ : July, 1927, compAred with J une, 1927........................................................ : P er ce ntage of sales to a ve rage stocks in: E J u ly, 1926 ............................................................................................................ : July, 1927 ..._.... .................................................................................................. : P e l'ccn tage of sales to avel'age stocks: E J a nuRry 1 to July 3]' 1926.............................................................................. : J a nuary 1 to July SI, 1927.............................................................................. : Ratio of outstanding ol'ders to last year's purchases...................................... ~ RntiiniOj~l~t 192~.~~~.~~~.~... ~.0....~.~.~.~.~.~~~....r~~~~~~.~.I.~:....~~~...~~.~ ...~~~~~~~.~ 8" .. ~ _ nl~l~a:s~ For~w2~0:1~.th _ H 08u1s:t~on ~ All Ot2h~e:r~s __ Total 7.8 + 3.9 + 2.8 + 1.7 Distl'ict - 7.? - 27.4 - 1.0 - 17.2 - 29.4 - 9.4 + .6 - 25.S + 8.7 + 5.6 - 41.1 + 6.9 - 1.6 - 30.9 + 2.1 - 6.8 -81.8 - Z.O - 15.9 - 8.7 - 9.6 6.0 + 5.1 - 2.5 + 1.1 - 2.7 - 15.8 14.8 17.1 17.6 21.9 21.2 18.9 17.8 17.8 17.8 186.4 146.0 10.1 133.0 148.8 7.0 180.7 190.9 9.8 157.7 156.7 8.8 147.8 166.4 9.3 29.4 80.6 86.5 40.1 88.6 - (!) ~_ BUSINESS OF DEPARTMENT STORES Total Sa les : ~ .:~_ - 7.0 6.8 ~: : : § _ E - § : : g ;: : ;: g ;: ~ .,.11.11111111111 .. 11'11111111111111111,1, .. 111111111,11111111".1111111111I1I1I ... ,III .. IIII'"IIII.I.lllIllIlIlllll tllllllllllllllllllllllll .............. IIIIIIIII .. IIIII ..... I .. IIIIIIIIII ..... III.IIII.II ... II.IIII .......... 'III.III ... IIIIIII.S FINANCIAL Midsummer dullness in business and industry was reflected in debits to individual accounts at banks located in sixteen principal cities of this district in July. July charges to depositors' accounts reflected a slight decline as compared to June and were 4.2 per cent less than in the same month last year. The decline from a year ago was the first shown since last Janum·y. It will be observed, however, that the decline was not altogether general as eight cities showed increases over the previous month and six reported gains over the same month last year. Acceptance After decreasing in May and June the Market volume of acceptances executed by ac· cepting banks of this district and outstanding at the end of the month showed an increase at the end of J ul y and were almost twice as great as those outstanding a year ago. As compared to $2,684~951 on June 30, and $1,926,055 on July 31, 1926, acceptances outstand· ing at the end of July this year totaled $3,600,971 repre' senting increases over the two previous dates of $916,020 and MONTHLY BUSINESS REVIEW July 1927 Abilene ..._................. $ 9.172 Austin ........................ 14.868 Beaumont .................. 28.664 Corsicana .................. 5.400 Dallas .......................... 185.981 E I Paso ...................... 82.128 Fort Worth .............. 98.604 Glliveston .................. 88.467 Houston .................... 159.242 POI·t Arthur ............ 9.858 Roswell ...................... 2.786 Sht"eveport ................ 87.926 Texarkana ................ 10.040 Tucson ,..................... 8.308 Waco .......................... 15.052 Wichita Falls............ 26 .410 Total 11th District.. $672.901 July 1926 $ 8.905 16.584 20.226 6.338 196.298 28.945 92.287 41.129 168.046 9.859 2.760 41.047 10.291 8.625 14.368 36.499 $702.192 Inc. or Dec. + 3.0 - 10.3 +17.0 -14.8 - 5.8 +11.0 + 1.4 - 6.5 - 5.2 None + 7.6 .9 - 2.4 - 8.7 4.9 -27. 6 - 4.2 + June 1927 $ 10.848 17.848 28.888 4.891 188.284 82.087 92.814 87.689 157.667 10.478 2.970 85.952 10.185 8.846 14.987 27.855 $675.129 Condition of Member Banks in Selected Cities Inc. or Dec. -11.4 -14.8 1.2 +10.4 - 1.2 + + .8 +1.4 + 2.2 + 1.0 - 5.9 - 6.2 5.5 - 1.4 - 6.1 .8 - 5.2 + + - 5 .3 $1,674,916 respectively. Acceptances executed by these banks against import and export transactions amounted to $2,063,291 on July 31, an increase of $933,132 over June 30, while those based on the domestic shipment and storage of goods stood at $1,537,680 at the close o£ the month which was only $17,112 less than a month earlier. The loans and investments of member banks in selected cities of this district reflected a decline of $2,899,000 during the four-week period ending August 3rd. Investments in United States securities declined $900,000 but investments in other stocks and honds increased $209,000, making a net reduction during the period of $691,000. Loans secured hy corporate securities were reduced $524,000 and commercial loans showed a decline of $1,686,000. The net demand deposits of these hanks reflected a further decline of $2,050,000 hut time deposits showed a further gain of $629,000. While their reserve deposits with the Federal Reserve Bank on August 3rd were $304,000 less than a month earlier, they were $2,214,000 greater than a year ago. Their hills payahle and rediscounts with the Federal Reserve Bank amounted to $6,104.,000 on August 3rd as compared to $2,179,000 on July 6 and $6,875,000 on August 4., 1926. As compared to a year ago, loans and investments were $20,616,000 greater, representing an increase of $14,735,000 in investments and $5,881,000 in loans. During the year, net demand deposits have risen $11,795,000 and time deposits $10,363,000. (!JII.II •• 'II.IIIII.IIII ••••• IIIIIIIIIIII ••••••• IIIIIIII111111,.111111111' ••• 11.1111111111111111111111111111111111'111111111111111 11 111 11".111111111111.11111111111.111111 ' 11111111'1'111111'11'11111111""1111111111111'111111111111 •• 11 •• 11111111111 •••• E :::::i .:: : : § OONDITION STATISTICS OF MEMBER BANKS IN SELEC'l1ED CITIES r: 6. 7. ~~:::~~~7ii~?t¥~~~::~.~~'=;~~~1~~~~: ~2:U;1:~0i.:·~50i2~78'·:~oi ~of :~U 6;'~9i:.~ig61~i.:· o~ jo:~! A:~g: W8:f'~6i ~86;:.0~i 0 l~or 113 1 E All other loans ................ _............................ _....................... _..............•.......... _...... _....................... Net demand deposits .. _........ _.... _........ __........................._ .................. _............................... _......... :: ~::rv:e~n~tsF.;d~;~I··R;;~~~~··B~"iik::::~::::::::::::::::::::::::::::::::::=::::::=:::::::::::::::::~:::::::::::::=::~::: 10. BUis payable and rediscounts with Federal Reserve Bank.. _........ _........ _........_........ _........ 11. Ratio of loans· to net demand deposlts ........ _ ........................................... _.................. _........... ·Loans Include only ltema 4 and O. 29.575.000 6.104.000 88'70 29.879.000 2.179.000 88 % _::.:::§:i 27.861.000 6.875.000: 91 % : E 811111111111111111111111111111111111111111.1111111111111111111111111111111111.1111111 .. 1111,111111111111111111111111.11111 11 1111111111.11111111.,1111111111.11111".1111111111111111111, ... 111111 .... 11111111.11111111 .. '"1111111.1111'11"1111 ... 1I' ..... m Reports from 93 hanks in this district, which operate a savings department, show that savings deposits of these hanks amounting to $122,979,687 on July 31st, were 0.4 per cent less than a month earlier hut were 10.4 per cent greater than on July 31, 1926. This was the first decline shown hy reSavings Deposits porting hanks as compared to the same day of the previous month since Novemher 30, 1926. There were 267,701 accounts carried at these hanks at the close of July as compared to 266,910 on June 30, and 241,901 on July 31st a year ago. m'.IIIII.IIIII'IIIIII I I.IIIIIIIIIIII ••• IIIIIIIIIIIII'.111'1 111.11'1'1.11111111",,11111111 •• 11,1.1.111.111111IIIIItllllll'llllll tt lllll.III . IIII I IIIIIIIIIIIIIIIII.11111111'111.111.111.,1111'1'11,.,11,111""1'1.,1,1.,1IIIIIIIIItllllll l ll"'!' I " IIIIII I[!) g July 81. 1927 Number of Number of Amoun t of Reporting Savings Savings Danks Depositors Depos its E E::: = § : Houston ............... _.................... San Antonio ............................. Ie a 3~·.m 5:111:671 6.592.490 9.882.286 29.069.984 13.060.411 16.121 19.'168 J2.735 55.668 26. 078 8'.948 85.882 2' 091' 758 18'962'802 5.264 86.6'10 ~ a s ................... _....... !:~i;:;~:~ ,~.;.~:~~ 2~·1~~·~~~ 16.183 20.650 18.848 62.485 28.441 2 46. Fort Worth ............................... 61'.m 8 3 8 18· 6 ~il~:s~···:::::::::::::::::::::::::::=:::::::: ~ WWs~rc.ehit F ....:::::::::::::::::::::::::::::::. . ;e~.~.~ II : :: July 31. 1926 Number of Amount of Snvings Savings D eposi~()1's Deposit; r Beaumont ................................... § Galveston ................................... ~ : E SA VINGS DEPOSITS ~ n 2~'m $ ~'m'm 2~:m $ Inc. or Dec. 1~·.~~~·.1~~ t2~:~ 5.987.158 6.172.774 i~'~9~'17~ . . - 18.9 + 6.8 + 15.0 ~.g " 2.470.088 16.502.466 + 14.9 8 .5~5.~~1 ~:~~U~g t t1~:~ - 15.8 June 80. 1927 Numher of Amount of Savings ' Savln&'8 Depos itors Deposits 61:m 14.899 20 .768 J8.280 g~'r~ . 9_ 2~:m 8.988 85.787 $ ~ Inc. or E Dec. §: ~ 2~:m:m 2:1:~: 5.139.884 6.668.582 9.699.999 29.228.519 13.053.747 - ~:m:m 2.656.285 18.922.910 b::k. I. ~:::%•. ••~,:;·::~:'I... :,";:;,. . ,:;:;~:';~~ ."mb.. -;:::.,." '::;:::<0,'.'''''''''''' .5 § -1.1: +1.9: - .6 ~ +.1: 3 2: :: E +21.3 : +.~ : -.! Gl IIIIIII.IIIII.I.I.I.I •••• I •• I ••••••••••• ' •• IIIII.III.'1'1111""11 •••• 11,,.111.11111.11 •• ,1,111111,1 •• 111.'."IIIII,IIIII. UI.,III',II,III.IIIIII ••• , IIII •• IIIIIII1111111111111111"11,,1111,111111111111'1111 1.,111111'111 ••••• II IIIIIII.III'IIIIII.II •• '11li Comhined deposits of memher hanks in this district which amounted to $781, 680,000 on July 27th 'Were $5,561,000 less than on June 22nd hut were $26,633,000 greater than a year ago. The net demand deposits of these banks declined $3,384,,000 during the five· week period ending Jul y Deposits of Member Banlcs 27th and time deposits dropped $2,177,000. Banks located in cities of less than 15,000 population reported the heavier decline in net demand deposits, whereas, the greater portion of the reduction in time deposits occurred in cities of over 15,000 population. MONTHLY BUSINESS REVIEW 6 8 .•••••••• 1••••••••••••••• , •••••••• 1., .............. 1."",' ••••• 1.1.,1".1 •• 111"1.11"111'1'1111.111111111'1.1.1.1'111111 •••• 1" ••••••••••••• ,11.1.1 ••••••• 11111.111 •• 1"1"'11111.1.1.1,111 •• ,.111.1.1 ••• 11 ••••••• ,.1, •••• Dallas Rate charged cuatomers on prime commercial paper 8uch as is now elhl'lble tor rediscount under the Federal Reserve Act ......_............... _... _........_ ........_ ........_ ....... --....Rate charged on loans tcJ other banks, secured by billa receivable ....................... _...........•..•...._....... _....- ... - ........ - .......... Rate on loans secured by prime stock exchange or other current collateral (not including loans placed in other markets through correspondent banks) : EI Paso Fort Worth Houston ,II.III.,IIII.,.IIIII •• II.I." Il!J San Antonio Waco 4~-5 8 5 6 6·6 5 \t\ ~:::n~. .::::~::::::::::::. _::::::::::::::::::::::::~~:::::::::::::::::::::::::::: 6·1 5·6 8 8 6·8 6·8 5·6 5·6 G· P 6·8 6·8 6·8 etc. ................ _........ _............. _... _................................................- 6·0 6·1 7·8 6.8 5.& 6.8 5·7 6.8 7·8 6·8 8 : Rate cJn commodity paper secured by warehouse receipts, § Rate on cattle loans ......._....... _........ _...... _ ............__............-.. 8 ... 5·8 5·6 4%·0 6·8 6·6 4·~ 11 .... 111111 .... 111 .... 11111111 ....... 1....... 11111111 .. 1111 .. 11111 .. 11 ....... ' .. 1111111 ...... 111 .................. 111111 ............................ 1111".11111." .... 11".11 .. 1111 ............... IIIIII" .. " " I I I IIIIIII'"IIIIIIIIIII.III ' IIIII. \ . ... DEPOSITS OF MEMBER BANKS Total Demand July 28, 1926 .. _. _ _ Aug. 25, 1926 ...... _ ... Sept. 22, 1926 ..............•. Oct. 27, 1926 ...._.......... ov. 24, 1926 ......... _.. Dec. 29, 1926 ......._....... an. 26, 1927................ eb. 23. 1927 ................ March 28, 1927 ........ ...• April 27, 1927 ............. Ma y 25. 1927 ........... _•.. une 22. 1927. ............. uly 27. 1927 ................ §i --589,748 584,468 612.884 626.554 635,704 632, 391 ,,33,208 650,879 645 .449 682.818 618.186 606.696 603,312 Banks in cities Banks in cities Total with a popula. with a popula. tion of over tion of lesa Time 15,000 than 15,000 Demand Time )emnnd Time 165,299 165,277 165,732 164.97 2 165.713 161,508 166.919 176,503 176,130 175.886 178.895 180.545 178.368 262,499 45.628 257,886 45,407 ~7 5, 7 80 45.640 281.080 42.998 287.413 44,194 ,81.721 41,290 282.875 43.791 290,385 44,869 278.998 46.021 272,254 46,624 265.858 47.618 268,813 48.119 261.809 47.666 - 249 119,671 327, 326.577 119,870 33 7,054 120,092 ~45. 474 121,974 3·16.291 121,519 ~fi O.670 120,213 850,838 128,128 360,494 131,634 866.451 130.109 360.564 129.212 847.278 131.277 842,883 182.426 341.603 130.70 Z§ [!lllll II .. It ""1 II "","11".,111.11111 .. 1 .. 11"1"1"""'11' 11"""1111111111" 11111"1.11'.1.111'111111111111111 .. 1 0 Operations 0/ the Federal Reserve Banlc Loans to member banks increased con· siderably during July, amounting to $10,. 448,587 at the close of the month, as against $6,220,655 a month earlier. A further increase in loans was noted during the early days of August, reaching a peak for the year at $12,109,691 on the 6th of the month, but subsequently declined and stood at $11,480,168 on August 15th. On the latter date they were $7,703,795 less than on the corresponding date a year ago. While borrowings of country banks increased steadily be· tween June 30th and August 15th, the greater portion oft the increase during the last fOllr weeks of the period came from banks located in reserve cities. On August 15th loans were almost equall y distributed between the two classes of banks, whereas, last year on this date, borrowings of reserve city banks constituted only 39 per cent of total loans. There were 210 banks borrowing from the Federal Reserve Bank on July 31, as compared to 174. on June 30th and 343 on July 31, 1926. J Due entirely to the increase in loans to member banks, total bills held increased from $16,277,818.58 on June 30th to $18,975,24,9.37 on July 31, distributed as follows: Member bank colla tern I notes secured by U. S. Governmen t obligations ............................. _.........................................................$ 4.861.400.00 Rediscounts and all other loans to member banks........................ 6.097.186.73 Open mn"ket llurchases (Banke,'s ' Accepta nces }............................ 8.526.662.64 Total bills held ................................................................... _........... $18.975 .249.87 The volume of Federal reserve notes in actual circulation showed a seasonal increase during July. The amount of these notes in actual circulation totaled $36,520,155 at the close of the month, as against $34,505,115 on June 30th and $37,939,115 on July 31, 1926. The daily average reserve deposits of member banks which aJl1flunted to $58,795,984 in July, represented an increase of $299,527 as compared to June and was $2,610,559 greater than the daily average during July, 1926. FAILURES Statistics compiled by R. G. Dunn & Company ref/lect a marked improvement in the business mortality rate in this district during the past month. There were fewer failures in July than in any month since May, 1920, and there was only one month (July, 1924) in which the volume of in· debtedness of defaulting firms was smaller. While failures were rather large during the closing months of 1926 and Lhe early months of 1927, it appears that a large percentage of the weaker firms have been weeded out and that due in a large measure to the inauguration of sounder business policies, the business structure generally in this district is in a sound condition. There were 27 defaults in July with an indebtedness of $273,924, as compared to 59 failures during June with liabilities of $1,555,260 and 72 insolv· encies in July, 1926, which owed $969,986. PETROLEUM Total production of crude oil in the Eleventh District was greater in July than in June but due to the longer month the daily average output showed a decline of 10,435 barrels. Production during the month amounted to 20,506,806 bar· rels of oil as compared to 20,158,351 barrels in the previ. ous month and 14,192,770 barrels in July last year. Com· pletions in July numbered 586 of which 319 were producers of oil and 33 were gas wells, as compared to 536 comple. tions in June including 294 producers of oil and 25 gas wells. Initial production amounted to 132,723 barrels of oil representing an increase of 46,664. barrels over the previous month. The daily average production of crude oil in Texas de· clined from 623,814. barrels in June to 607,650 barrels in July, all fields except Central West Texas reporting de· clines in production. A substantial increase in total out· put was noted in Crane and Upton counties in Central West Texas, and the Spindle Top field, Gulf Coast area, while initial production in each of the fields doubled that in June. Drilling activities in the Panhandle region of North Texas subsided further and new production during July dropped to a lower level. There were 1,669,660 barrels of oil produced in North Louisiana as compared to' 1,443,930 barrels in the previous month representing an increase of 5,729 barrels in daily average output. Although the number of new producers were only six greater than in June initial production increased considerably, amounting to 17,162 barrels as against 1,441 barrels in the previous month. MONTHLY BUSINESS REVIEW 7 [!)'U .. UIl.IIIIIIIIIIIIIIIIIIIIIII ..... UU .............. IIIIII ...................... IIIII ............ 1111 ..... 111111111111111 ........... 11 .................... 11 ................................. UIlIIl .. II ....... II ................................. I I . e ~ OIL PRODUCTION = July Daily Avg. 216.868 198.020 84.270 181.487 82.060 : ~ June Total Daily Avg. 6.815.990 227.200 5.427.841 180.927 1.161.210 88.374 4.800.520 148.851 1.018.860 88.962 Inc. or Dec. E Total Daily Avg. : 98.250 Dec. 10.887 555.779 Inc. 12.098 88.840 Dec. 4.104 226.964 Dec. 11,914 26.000 Dec. 1.902 North Texas ........................ _........ _............................ _ Central-West Texas ...._..._ .............................._ ... _. East-Central Texa..................................................... Texas COastal............................................................. Southwest Tcxas .................... ............................ _...... Total 6.722.740 5.988.620 1.062.870 4.074.556 993.860 Total. TeX88 .......... ............................................ North Loui.lana ................... ..................................... 18.887.146 1.669.660 607.660 68.860 18.714.421 1.448.980 628.814 . 48.181 Inc. Inc. 122.725 226.780 Dec. Inc. 16.164 6.729 Total. District .............................................. __ ... 20.606.806 661.510 20.168.861 671.945 Inc. 848.466 Dec. 10.486 (!J'.,IIIIIIIIIIIIIIIII •••• II.I.,IIIIIII.I.II.IIIII ••••• ".,.,111111111 •• ,11111111111111111.,1111.,11111"1,.11111111111 •. North Texas ................ Centml-West Texas.... East·Central Texas.... 211 224 2 189 1 8 0 77 1 North Louisiana ........ 41 24 9 8 July totals. Di.trict.. 686 June totals. District.. 586 : : 1!] J~~~;RIL:~ 'E;;m ~; P~:;:;::I: 1 ...,<: 819 294 33 25 284 217 70.684: 46 : ~~w~:~~ ,!! ,:! ,! ,:! !16 ~2! :_I~ =:::i :: I '117:'" 132.723 86.069 mll ••• II.III •••••••••••••••••••••••• , •••••••••••••••••• ",.1,,11111111111111111111111111111111111111111111111111111.1.1.0 ..: 1 m"...",,,,,""" ..""" .............. ,~;~,~~"~;,~";;~~;~.. "...........""...... ,".. "...... ,,"8_ TexasTexas Coastal E = August 10 Augu.t 11 1927 1926 (Grade .. A .. ) ........................................$1.20 $1.60 ber showing small increases over the previous month, while production was sustained at near the level of that in June. July shipments of lumber were 27 per cent below normal production which was 3 points greater than shipments in June and orders increased from 67 per cent of normal production in June to 72 per cent in July. Production during the month amounted to 79 per cent of normal as compared to 80 per cent in the previous month. Stocks on hand July 31, increased 4 points over those a month earlier and stood at 91 per cent of normal at the close of the month. Unfilled orders on the books of 45 reporting mills on July 31, amounted to 4,2,833,448 feet of lumber as compared with 41 5,84.5,586 feet recorded at 51 mills on June 30. m""...... IIIII1IIIIII~~~;I;~~I;I~~~~I~;~;~~;;'~~"11111111""""""11~ Nortr52ang~.. c:~~r~J::)~ ..~~~...~~.~.~~...~~~.i.~.i.~~~........ Number of reporting mills....................................... 45 Production .................................................................... 81.428.880 feet 1.60 .• .Prices for August 10. 1926. not available on a comparable baSIS. 81111111111 ... 111 ............ 11111111111 ...... 1111 .... 11 ... 111111111 ...... 1111 ............. 11 .. 1111 .. ,11111 ...... 1111 .. Dec. Inc. Dec. Dec. Dec. . .. ~~:re~e~~~ :::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::~::: +~:m:m ~::i ·8 (Oil Statistics Compiled by The Oil Weekly. Houston. Texas ) LUMBER E A slight improvement was noted in the operation of pine mills in this district in July, orders and shipments of lum· Unfilled orders July 31.. .......................................... 42.888.448 feet Normal production ....................................... .............103.338.218 feet Stocks July 81 ..............................................................276.966.714 feet Normal stocks .............................................................. 308.691.412 feet Shipments belo~ normal production .................... 27.424,206 feet-27% Actunl productIon below nOl'l!'a!... ....................... 21.914.888 feet-21 % Orders below normal productlon .......................... 29.177.622 fcet-28 % Stocks below norma!... ............................................... 26.624.698 feet- 9% [EJUU .. ... .. .. .. .. L~I;.b:; ~~I~i~l;i~~ ~~·;·~·i·i~d lb~II·;h~ S~~ih~;~ ·pi~~ .. ·A~I~~~i~ii~~I: ; .. m II .. BUILDING to the previous month while nine reported declines. The total value of permits issued during the current year at these cities re£lected a decline of 23.7 per cent as compared to the previous year while the number of permits issued was only 1l.1 per cent less, indicating that the decline this year has been in commercial rather than residential construction. The valuation of building permits issued at principal cities of this district declined in July to the lowest level reached since November last year. The aggregate value of permits issued during the month amounted to $6,774,882, which was 17.9 per cent less than in June and 28.5 per cent b~low July a year ago. Of the fourteen reporting cities it WIll be noted that only five showed increases as compared 1!J11I1 .. 1I1I1I1I1I1I11I11.1I ........... UIlIl .. II .. II .......... IIII ...... II.UIl ....... IIII ••• 11111111.11111111111111111111111111 _ 11111111111111111111111111'111111111111111111111111111111.11111111111111 .. '.11111111111111 .. 111111111111111111111111111119 I., ~ !Umsnt~inilJo.................. B .................. ~: '. I~~: N:~'" ;;; 1;~I~IN:~:·:i~ ~::. I.:: '::.;;';;NO;;::I:~::,;" I:.::. 797.~06 88 $ 68 C~~:olgh -;··i'C··.... m:m 1~~ Dallas 164.594 246 60 277 rls ....... ~I Pas~···:::::::::::::::: Gor t Worth ........ _ l{~::::~n ••••• •• ••••••• (> Arthur........... Sort Anto . an Shrev mo ....... Vi CpOrt ........... W!lco .................. : '.;,~ita Falls ...:.:: : ,,,tal ~I'III :J~ 114 320 208 31 58 2.388 678.887 76.844 908.888 2 iig·m •• 127.158 98S.~36 288.111 126.466 187.267 $6.774.882 882 1~~ 72 275 41 +14f5~2 In:~~~ + S.7 $1.490.818 119.846 960.288 89.865 1. 86 .3 - 29.8 + 91.6 9~67 $ 181 53 260 55 m km - ~~.~ m 501 i'~:7'613"+ 9:4 118 519 1 0 9 ' 89'192 + 42.6 282 8' 0 + 28.1 269 72 .76 230 583.979 - 47.0 160 25 86 90 + 48.6 25 .1 762 78 117 $978760'858768 - 28'5 2480 8 2.68 .4. -.. •• •• •••• •• ••• •• • "11111111111111111111111111111111111111111111111111111111111111111111111 •• 111111.1111111111111111111111111,11111"11 267.071 447.712 428.075 1.4~~·m 1 206 '487 '202;161 1.726.781 124.646 1067 69fi • . 219.140 111190 282660 $8262'819 • • = = - 4') I 65:9 72.2 ~:. ~ _ 24.7 - 42.9 20 22 . 7 +. - 12.6 29.2 + 13.7 _ 33.7 - 17.9 + + 273 1.229 704,431 3.347.785 ~06 1.805.866 2·m 6'm:m 2.228 8.221.963 1.598 2.144.632 3'86~30 16'8. 66677.410970 2.107 8.987 .887 26 2176277 1.3 • 'S89 210 759. 571 2.277.159 18.873 $60.214.620 802 1.225 403 2·m 2.456 1.868 8'8~7776 2.146 1.842 280 1.282 20.676 757.897 1.08S.866 1.208.601 _:1 7.0 +228.8 + 50.1 ll'm:m = 12.104.852 2.884.678 18'962065.078428 • 9.497.804 2619948 '806'8 5 • 6 6.967.832 $78.867.980 ~~:~ - 82.1 - 10.1 - 106'~ . '1 6.4 - 16.9 68 . - 67.8 - 2S.7 : : IIIIIIIIIIIIIIIIII.II.IIIIIIIIIIII.IIIIIIIIUIII •• IIIIIIIIIIIIUIIIIII.UIIIIIIIIIII111111111111 .......... 111111111.1111111.,1110 MONTHLY BUSINESS REVIEW 8 CEMENT Production of Portland cement at Texas mills in July was below that in June and less than in the corresponding month a year ago but shipments from these mills showed an in· ·crease as compared to both periods. There were 458,000 barrels of cement produced in July, as compared to 469,000 barrels in June and 459,000 barrels in July, 1926, while shipments during the month amounted to 472,000 barrels as against 454.,000 barrels in the previous month and 464,· (!) IIUII II IIIIU' II """1111111" It 11111 .... 11111 ......... 11111 ..... .,11 .......... " 000 barrels shipped in the corresponding month last year. Due to the increase in shipments over production, stocks on hand at the close of the month declined and were 4.. 2 per cent less than a month earlier and 33.1 per cent below those carried on July 31, 1926. As compared to the same period last year production of cement during the seven months of the current year reflected an increase of 6.4, per cent and shipments 6.9 per cent. '" ... 1111111"" •• 11'11 II II"'" ........... u.................. 11 .. 11 .............. 11111 11 .. 1111 ........ '1 .. II .. UI' 11.11 .. 11 .. "111111111111111111'11'1 t II It III1IIIII [!]:::::.=::::::" PRODUCTION, SHIPMENTS, AND STOCKS OF PORTLAND CEMEN'l.1 (Barrels) July 1927 • Production at Texas Mills........................ :: StDeks at end of month at Texas mills._ 458.000 472,000 31G.000 § Shipments from Texas mills................... July 1926 459,000 464,000 472.000 Inc. or Dec. -.2 1.7 -33.1 + June 1927 469,000 454.000 880,000 Inc. or Dec. - + - 2.8 4.0 4.2 Seven Months 1927 3,102.000 3,202,000 1926 2,915,000 2,995.000 Inc. or Dec. 6.4 G.9 + + B.IIIIIIIIII •• II •• ,IIII.,III.' •• IIIII.II.IIIII.I.,II.I"1"11111'11111111,111111'1"""111'111111111'1111'11,., ••••• '.' •• 11".11 •• 1"'11 •• 111."1 •• 111 ••••• 1111111111.111111111.11 •• 1111111 •••••• 1 •• 1111 ••••••••• 1 •• '11 ••• tl.llltl ••• IIIIIIIIIIIIIIIII •••• 1il SUMMARY OF NATIONAL BUSINESS CONDITIONS (Compiled by the F ederal Reserve Bonrd ns of Augus t 26. 1927) Industrial production declined in July to a level below that of a year ago, while the Department of Labor's index of wholesale prices advanced for the first time since last autumn. Demand for bank credit showed a seasonal increase, but easy conditions prevailed in the money market. PRODUCTION Output of manufacturers declined in July and was in practically the same volume as a year ago, and the production of minerals which was further reduced during the month, was at the lowest level since early in 1926, when the anthracite strike was in progress_ Iron and steel production in July was in the smallest volume since 1925, and continued at practically the same level during the first three weeks of August. Automobile output for July and the early weeks of Auaust was considerably below that of the correspond. ing m~nth of last year; production of ru?~er tires, nonferrous metals and food products and actIvlty of woolen mills were smaller in July than in the preceding month_ Cotton consumption was smaller than in June, but continued unusually large for this season of the year. Production of leather, shoes, and lumber increased in July as compared with June. Factory' employment and payrolls showed seasonal decreases in July and were smaller than in any month since 1924. Employment in coal mining has been reduced in recent months, and reports indicate some unemployment in certain o£ the building trades owing to the decline in the construction o£ houses. Building contract awards in July and in the first three weeks of August continued larger than a year ago, the increase reflecting chiefly a growth in awards for engineering projects. The August 1 cotton report of the Department of Agriculture indicated a production of 13,4,92,000 bales or 25 per cent less than the record yield of last year. The indicated production of corn, though con· siderably larger than the expectation in July, was 262,000,000 bushels lower than the harvested crop of 1926. The August estimate of 851,000,000 bushels of wheat indicated an increase of 18,000,000 bushels over the 1926 crop yield. TRADE Distribution of merchandise at wholesale and retail showed about the usual seasonal decline in July. Com· pared with a year ago sales of wholesale firms and depart· ment stores were slightly smaller, owing largely to the fact that there was one less business day in July of this year than in July, 1926. Sales of mail order houses and chain stores were somewhat larger than a year ago. Inventories of department stores continued to decline in July and at the end of the month were slightly smaller than a year ago, and wholesale stocks also continued smaller than last year. Ship. ments of commodities by freight decreased, contrary to the usual seasonal trend, and were smaller in July and in the first two weeks of August than in the same period of last year. PRICES The Bureau of Labor Statistics index o£ wholesale prices advanced slightly in July, reflecting chiefly increases in the price of corn, livestock, cotton, and leather, while prices of wheat, silk, metals, and building materials declined. Since the latter part of July prices of corn, colton, and cattle have continued upward and those of wheat, non-ferrous metals, and rubber have also advanced while hogs, lumber, and hides have declined. BANK CREDIT There was an increase in the volume of commercial loans at member banks in leading cities between July 20 and Aug· ust 17, as is usual at the beginning of the crop-moving season. Loans on securities, as well as commercial loans, increased, while investment holdings declined, and total loans and investments were about $60,000,000 larger than a month earlier. Total borrowings of member banks at the reserve ; banks increased slightly between July 20 and August 241 there was a growth of discounts at the Federal Reserve Bank of New York, partly offset by declines in other districts. There was little change in the system's holdings of accept· ances and a growth in the portfolio of United States se· curities. Money rates on all classes of paper in the open market declined sharply in August, and were at a lower level than a year ago. Discount rates at eight Federal Reserve Banks were reduced from 4 to 3% per cent.