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------
MONTHLY BUSINESS REVIEW
OF THE
FEDERAL RESERVE BANK OF DALLAS
CHAS. C. HALL-W. J. EVANS
Assistllnt Federlll Reserve Agents
C. C. WALSH
Chllirmlln lind Federlll Reserve Agent
(Compiled August 15, 1934)
--
=
Volume 19, No.7
Dallas, Texas, September I, 1934
'.fhls copy Is released for pubhcatlon In afternoon papera-
August 31
DISTRICT SUMMARY
THE SITUATION" AT A GLANCE
Eleventh Foderal Reserve District
July
Chan~e
from
June
1934
Bank debits to individual accounts lat 17
D cities) .. . .... .. ..... . .. . ... . . . ... •... . ...
opartmont 8toro sahll! ... . . ................ .
noservo
bank loana to member banks nt end
n;,1 month . . . .... ... .. ... .. .............. .
crvo bank ratio at end 01 month . . . . ..... .
guildin g ~rnJit valuation at larger centel1l .•••
CommorOlal failures mumoor) .............. ..
O~mmoroial failures liabilitioa) ..... ..... ••••
.....!... production (barre ) .. ................. ..
$525,733,000
- 7 . 7~
- 24.2'10
374,875
- 35 .5%
22
361,160
+
+ ~~:~4
00 .4%
932,005
$
34,028,950
+
+
.2
25.
points
0
1.70
Business and industrial activity in the Eleventh Federhl
Reserve District reflected a noticeable recession during ~ ~
past month due largely to the effects of the unusually hig
temperatur~s and the severe drouth which have prevail.ed ~or
this SUl11mer throuahout the major portion of the dIstnct.
Retail sales in July at department stores in la~ger cente~s
showed a decline of 24 per cent from the prevIOUS mont ,
an d the increase of 13 per cent over the correspon d'mg month
last year was the smallest of any month of the current y.ear.
Wholesale distribution was also smaller than in the :prevIb1s
Illonth and the margin of gain over a year ago considera y
reduced. Due to the uncertainties created by the .drouth,
Illerchants are exercising caution in making. com~Itments,
but the firmness in commodity markets is stimulatmg purchases for immediate requirements. While both the number
and liabilities of commercial failures were slightly larger
than. in June, they were about half th?se in Jul~,. 19~~:
Debits to individual accounts at banks m larger CItIes
elined 8 per cent as compared with June, but were 11 per
Cent above those in the same month last year. The latt~r
figure, however, was considerably smaller than the gam
shown for June.
, The most tangible effects of the drou~h ?pon the a1:'Icultural and livestock industries were mdICated by t e
August 1 report of the Department of Agriculture. Prospective production of most crops in the states attached to
this district, excepting Louisiana, are sharply under the
five-year average and in some instances they are the smallest
in many years. Unusually low yields are forecast for feed
crops and some areas will be seriously affected by the shortage before next year's crops are harvested. The forecasted
production of cotton is materially under last year's harvest,
due both to the sharp curtailment of acreage and the effects
of the drouth. The condition of livestock and their ranges
is very poor over most of the territory and in many areas
ranclunen are finding it difficult to supply water and feed
for stock. There has been a heavy movement of cattle from
the stricken areas for better pasturage, and large numbers
are being sold to the Government for slaughter.
The deposits of member banks reflected a further gain
in July, the daily average of combined net demand and time
deposits aggregating $719,023,000 as compared with $712,177,000 in June, and $587,838,000 in July last year. The
demand for Federal reserve bank credit continued light. The
reserve deposits of member banks on August 15 were approximately the s~me as. a ~onth earlier. Federal reserve
notes in actual cIrculatIOn mcreased seasonally between
July 15 and August 15 and on the latter date were substantially larger than a year ago. The loans and investments
of reporting member banks in seleoted cities showed a
moderate gain during the four-week period ending August 8.
As compared with the corresponding date last year, the
investments of these banks were $72,137,000 larger, but their
loans were $20,952,000 smaller.
The valuation of building permits issued during July at
principal cities reflected a decline of 15 per cent as compared with the previous month and was 54 per cent under
that in the corresponding month last year. Shipments of
cement from Texas mills, while smaller than in June, ex·
ceeded those in July, 1933.
BUSINESS
TPh olesale
1'rade
. wh 0 IesaI e channels
Business activity m
of distribution during July was on a
generally smaller scale than in th~ p~e
ceding month. Reports received from firms in this dIstnct
~how that material declines occurred in the lines of fari
Itnplements groceries hardware, and drugs, only ondefo
\vh'
,
,
d Ich Was partly
seasonal
in nature. Wh'l
l eth
e deman orI
ry goods at wholesale registered a larger than seasona
increase the comparison with a year ago was less favorable
than in 'the previous month, sales being 27.9 per cent less
than a year ago. In the other lines business continued to
exceed that of the same month last year, but by a smaller
margin than in June. Adverse effects were felt as a result
of the drouth, which retarded buying in wide .areas. Stocks
on hand at the close of July were larger than eIther a month
earlier or a year ago. Collections in all lines except farm
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
2
MONTHLY BUSINESS REVIEW
----------------------~~~~~~~:==~~~~-----------------------
implements showed substantial declines, which were to some
extent seasonal.
Despite the fact that dry goods sales at wholesale in July
were 27.9 per cent below the volume of the same month last
year they reflected an expansion of 20,4. per cent over the
previous month, which is a somewhat larger gain than
usually occurs at this season. While merchants incline
toward conservatism in making fall commitments and are
placing current orders largely on the basis of present needs,
current reports indicate that August business at wholesale
is in large volume. Total collections reported in July were
9.9 per cent below those in June.
A contrary to seasonal decrease of 6.0 per cent occurred
in the demand for drugs at wholesale during July, although
several firms reported larger sales than in June. Business
was 11.0 per cent greater than in the same month last year.
Stocks held by reporting firms were increased 6.5 per cent
during the month, and at the close of July showed a gain
of 14,.2 per cent over a year ago. Collections declined somewhat from the volume of the preceding month.
The distril;mtion of hardware during July, as reported
by wholesale firms in this district, was on a reduced scale,
being 15.7 per cent smaller than in June. As compared with
July, 1933, there was an increase of 6.9 per cent, whereas
sales in the first half of the current year were 57.1 per cent
above those in the same period last year. In spite of the
substantial decline from the previous month, several of the
firms experienced a pick-up in business during July. Collections reflected a decrease of 11.8 per cent.
Total July sales of groceries by wholesale distributors
in the Eleventh District reflected a decrease of 3.5 per cent
from the previous month, and were on a scale only 6.4 per
cent larger than in the same month last year, as compared
with an average increase of 20.9 per cent in the first six
months of this year. Nevertheless, the general sentiment was
reporled to be good, and business in certain localities appeared to be on the up-grade. Collections during the month
were 7.7 per cent less than in June.
A reduction of 30.9 per cent, only partly due to seasonal
influences, was shown in the distribution of farm implements
through wholesale channels during July. Sales were 54.6
per cent larger than in the same month last year, as against
a like increase of 85.9 per cent in June. There was a further
material gain in the volume of collections during the month.
CONDITION OF WHOLESALE TRADE DURING JULY, 1034
Percentage of Increase or decrease In-
Groceries .... .. .... ... . .. .. ..
Dry goods .. .. .. .. .. .. • .. ....
Farm implements .. .. .. .. . . ...
Hardware .. ........ ... . .... .
Drugs .... .. .. .. .. ...... .. ...
Net Sales
July, 1934
compared with
July,
Junc,
1033
1034
6.4 - 3.6
-27.9 +20 .4
+64 .6 - 30.0
+ 6.9 - 16 .7
+11 .0 - 6.0
+
Stocks
July, 1934
compared with
July,
Junc,
1933
1934
+11 .4 + .8
+61.9 + 6.9
+10 .7 + 1.6
1.0
2.0
+14 . 2 + 6.5
+
+
1
~~:~i~:~=J~~~, 11~~t : : ::::::::: ::::: : :: : : : :::: :::::: :: ::::: :: :: :::::::: ::
~~i~:::=J~~~, \~~~'. : ::: ::: ::: :: :::::::: ::::: ::: ::::::::::::: ::::::::: ::::::
Indexes of department storo stocks:
~~~~i~:~=J~~~, \~~~'.'. '.::::::::::::::::::::::::::::::::::::::::::::::::::::
~~i~:~=J~~~, \~~'.: : :: : ::::::::::::::: :::: :::::::::::: :::::::: :: ::::::::::
to nccountR
~n
a
notes outstandlDg
on Juno 30
64 .1
27.0
0.9
42 .1
44 .3
Retail
Trade
Despite the deterring factors of a pro'
longed drouth and extremely hi g\ tem~
peratures, the business of depar .men
stores in principal cities of the Eleventh District cont1O~e d
fairly active during July. While the dollar volume of s th~s
during the month was 24.2 pel' cent below that in June, IS
reduction is slightly smaller than the average decline {Of
that month. Although the increase was somewhat. smal
than that recorded in the previous month, sales dunng J? Y
continued 12.9 per cent larger than in the correspond~n~
month of 1933. Reflecting the smaller than seasonal dech
~at oc.curred in sales of merchandise,. the seasonally a 4
Justed mdex of department store sales mcreased from 73:
per cent of the 1923·25 average in June to 76.0 pel'. cent In
July, and compares with an index of 68.1 per cent 10 J~IYJ
1933. Aggregate sales of merchandise during the peno t
from January 1 to July 31 this year were 28.0 per cen
greater than in the corresponding seven months of 1933.
r
d.
Stocks of merchandise at department stores on July 31
reflected a further decline of 6.5 per cent from the previoUS
se
month, and while they remained substantially above thtl
held on the same date last year, the increase was sma ef
than any recorded for the past several months. The rate
of stock turnover during the first seven months of 1934 waS
1.72, as compared with 1.58 in the same period of 1933.
Collections on accounts during July evidenced the usual
seasonal decline, but continued above those a year ag~
The ratio of collections to open accounts outstanding 0
July 1 was 35.3 per cent, as against 38.4, per cent in J unei
and 30.7 pel' cent in J ul y, 1933. Collections on install men
accounts reflected a slight reduction from those in J un~
BUSINESS OF DEPARTMENT STORES
Total sales (percentage) :
July, 1934, compared with July, 1933 .. . . ............. . ... .. ................ . .. .
July, 1934, compared with Junel 1934 .. . . . ....... . ... . .. . . .. .....• ... . . ..... . . ..
January to date compared witn same period last year .. . . .. . .. .. ... ..... ....... .
Credit sales (percentage):
July, 1934, comparod with July, 1933 . ....... ........ . ... ............... , .. .. .. .
July, 1934, compared with June. 1934.. ............. . .. . .. ... ........ .. ... ... . . .
J anuary 1 to date compared with same period last year .... . .. .. . . . .• ....•.. .... . .
Stooks on hand at end of month (percentage):
July, 1934, compared with July, 1933 . .... . ... . ...... .. ... ..•. . . . . ..... . ..... •. .
July, 1934, compared with June, 1934 .... . ... . .. . ...... .. . .. .... . . . .. .. , ..... .. .
Stock turnover (rate):
Rate of stock turnover in July, 1933 ... ... . . . . .. . .... . ... .. ....... .. ......... .. .
Rate of stock turnover in July, 1934 .... .. ......... . . . .. .. ... . .. . .. ..... . ... . . . .
Rate of stock turnover January 1 to July 31, 1933 ... . . . .. . ... . ... .. . . ... . .... . .. .
Rate of stock turnover January 1 to July 31, 1934 .... .. .. . .. ... .. .. .... ... . ..... .
Ratio of July collections to open accounts receivable outstanding July 1, 1934 . .. . .. . . . . .
Ratio of July collootions to installment accounts receivable outstanding July 1, 1034 .. . .. .
Indcxes of department store sales:
Ratio of oolleotions during Jul
-
Dallas
+16.0
-22 .8
+36.2
Fort Worth
4.7
-14 .2
+18.7
Houston
+15 .9
- 28 .4
+29.6
San Antonio
+13 .3
- 24 .8
+26 . 1
Others
+10.4
-28.6
+21 .8
Total Distriot
+12.9
_24 .2
+28 . 0
+17.5
-22.4
+35 .3
+ 1.2
-14 .9
+10.0
+24 . 1
-32 .8
+33.2
+16.2
-25 .7
+29 .0
+ 5.3
-31.4
+19 . 7
+14.1
_25.4
+20 . 3
+15.5
- 4.9
-
+u
+16 .7
-12 .0
+15 . 7
- 7 .7
+14 .5
- 4.0
+13.8
_ 6.6
+
7.8
.20
.19
1.58
1.72
36.3
13.5
.21
.21
1.63
1.89
36.4
14.9
.10
.18
1.33
1.44
28.8
10 .0
.19
.18
1.67 '
1.72
38.5
.26
.23
2.01
2.09
40.0
52.7
65 .1
78.7
74.8
63.3
70 .9
84.4
75.4
59 .2
70 .2
84.6
74.7
46 .3
61.0
68.1
62.2
53.2
67.6
76.0
73.4
46 .1
48.4
49 .6
60.4
61.7
66 .9
67.1
70 .4
38.0
42.6
43.7
47 .3
37.8
40.8
43.4
46.4
40 .6
62.8
54 .6
66.2
.16
. 15
1.39
1.42
30. 7
13 . 1
MONTHLY BUSINESS REVIEW
8
~---------------------------------------------~
Comm~rcial
The record of commercial failures in this
Failures
district during July, though not so favor,
able as in the two preceding months, was
stlll appreciably better than in any of the first four months
?~ this year, Both the number of insolvencies and the liabilIhes involved were considerably less than in July, 1933,
According to the report compiled by Dun & Bradstreet, Incorporated, there were 22 defaulting firms in July, as compared with 17 in the previous month, and 42 in the same
month last year, Total indebtedness amounted to $361166
as against $288,909 in June, and $798,981 in July a year' ago:
AGRICUL TURE
Crop
Conditions
The widespread and prolonged drouth is
now a!Iecting nearly all sections of this
district, and the production of most crops
~s been, sharply reduced, The heav,y rains acc?mp?nyi~g
I' e troplCal storm late in July relIeved the SItuatIOn In
ynited areas of South Texas and along the Texas Coast, but
e sewhere the drouth together with the abnormally high
temperatures has caused heavy acreage abandonment for
Some crops and low per acre yields are in prospect. While
rnO~t crops are too far gone to be benefited by rain, adequate
mOIsture in the near future would increase production of
Some crops and would enable farmers to plant fall feed and
to, prepare the soil for early seeding of small grains for
WInter pasturage.
fa The August 1 report of the Department of :,-gric.ultu~'e
,recasted low yields for principal feed crops In thIS dISnc t. The indicated production of corn in Texas on August
62 Was 56,930,000 bushels as compared with a forecast of
7 ,623,000 bushels on July 1, and an actual harvest of
14.,824.,000 bushels in 1933. The forecast for corn in Oklalama was reduced from 15,274,000 bushels on July 1 to
0,910,000 bushels on August 1. Last year's production
arounted to 19,485,000 bushels, The prospective production
a corn in Louisiana on August 1 was 15,157,000 bushels
as compared with a forecast of 16,4.75,000 bushels a month
f:d~ier, and a har,vest ,of 15,574,00~ b~shels last year. The
h lcated productIOn In New MeXICO IS less than half of
t at in 1933. The Arizona crop is likewise substantially
~rnaller. Grain sorghum crops in Texas on August 1 prom·
sed an outturn of 33,824,000 bushels, whereas 46,508,000
inushels were harvested last year. The indicated production
90 Oklahoma was 5,040,000 bushels as compared with 1.1,
0,000 bushels in 1933. Grain sorghuins in New MeXICO
ih'0mised about half a crop on AuO'ust 1, while in Arizona
e ~ndicated yield was approxima~ely three-fourths of last
ar s harvest. While this crop has been badly damaged by
e drouth, rains would be beneficial to late planted fields
a d would enable farmers to make new plantings which
: oul,d mature bundle feed. Hay crops in all states attached
l~ihls district indicate yields considerably below those of
3 or the five-year average.
1
b
ih
h
f A s~arp reduction in the prospective cotton production
ij.r thIS district due both to the smaller acreage and the
e eets of the ~idespread drouth was forecast by the De·
'
dPartment of Agriculture on AuO'ust
1. The eIfects 0 f th e
thouth are most pronounced in Texas and Oklahoma where
P e prospective per acre yields are very low. In Texas the
acre yield was estimated at 108 pounds against an actual
l~e d of 185 pounds in 1933. This figure applied to the
l' ,576,000 acres left for harvest gives an estimated produc.
lon of only 2,382 000 bales whereas 4,428,000 bales were
hpiar vested last year." The per acre yield in Oklahoma was
du~C~d at 95 pounds as against 208 pounds last year. Proa ~Ion for the State was forecasted at 509,000 bales as
agaInst an output of 1,266,000 bales a year ago. In .Lou~siana
per acre yield of 175 pounds is ,indicated whlCh IS ap-
/1'1
proxi~ately the same as in 1933, but the reduction in acreage wIl~ account for a smaller production. The indicated
productIOn for N~w Mexico is also lower than last year, but
a,lar,ge;- harvest IS f?recasted for Arizona. Over most of the
dlstnct scotton tern tory the drouth continued unabated at
the middle of August.
T~e Texas rice crop was materially benefited by the
tropIcal storm on July 25. All rice producing areas now
~av,e an ample s~pply of water to mature the crop. The
111dlCated productIOn was increased from 6,900,000 bushels
on July 1 to 7,3140,000 bushels on August 1. Last year's
harvest totaled 7,4.73,000 bushels. The July rains also
che,cked the decline. in the condit~on of oranges and grape·
frUIt. All other frUIt crops detenorated during the month
appl~s, and peaches being the most severely damaged. Th~
condItIOn of peanuts on August 1 was materially lower than
? year. a,go in Te?,as an~ O.klahoma and moderately lower
111 LOUISIana. WhIl,e the I~~lCated pro~uction of sweet pota·
toes on August 1 In LOUISIana was slIghtly higher than in
1933, it was substantially lower in Texas and Oklahoma.
The continued drouth over most of this
district during the past month caused a
further sharp deterioration of both ranges and livestock and
many sections are in a very critical condition. Late in July
moderate to heavy rains fell in the southern part of Texa~
and along the Sabine River and Coastal sections of the State.
Conditions in these sections are showing some improvement
but in some localities more rain will be needed to mak;
winter feed. In most other sections of the district the drouth
remained unbroken at mid·August. Range grass is practically
exhausted and stock water in many areas is very short. As
the drouth has ,also greatly reduced production of feed crops
and as most lIvestock are now on feed, the feed situation
may become very serious in the coming months unless rains
occur in the near future that will permit the raising of fall
feed crops. There has been a heavy movement of stock from
the stricken areas as well as a large number sold to the
Federal Government for slaughter.
Livestoc/,
According to the report of the Department of Agriculture
the August 1 condition of cattle ranges in Texas was 50
per cent of normal, the lowest for that date for any year
since records have been maintained. This figure compares
with 62 per cent on July 1 and 71 per cent on August 1
1933. Sheep and goat ranges declined from 64. per cent of
normal on July 1 to 55 per cent on August 1, the figure on
the latter date comparing with 70 per cent on the same date
last year. The condition of cattle was rated at 60 per cent of
normal on August 1 as compared with 71 per cent a month
earlier, and 77 per cent a year ago. There was a decline
during July of 6 points in the condition of sheep and 5
points in that of goats. The condition figure for sheep and
goats on August 1 was 9 points lower than a year ago. Low
condition figures for both ranges and livestock also obtain
in Arizona and New Mexico.
MONTHLY BUSINESS REVIEW
4
--------------------------------------------------------------------------------------------------------Movements
During the past month there was a narrow demand fOi
Due to the heavy purchases by the Federal Government, receipts of cattle and
calves at the Fort Worth market reflected
a large increase in July as compared with both the previous
month and the same month last year. The number of hogs
yarded was slightly larger than in the previous month, but
fell substantially under that a year ago. The receipts of
sheep reflected a sharp seasonal decline as compared to the
previous month, and were moderately smaller than in July
last year.
and Prices
FORT WORTH LIVESTOCK RECEIPTS
(Number)
Cattlo ..... . .. .. .
Calves ........ ..
Hog.......... ..
Sheep ......... . .
July
1934
80,014
38,917
33,192
42,074
July
1933
36,645
16,728
37,139
44,637
Chango over
year
+45.360
+22,189
- 3,947
- 2,563
June
1934
64,289
21,978
32,479
64,774
Change over
month
+15,726
+16,939
713
-22,700
+
nearly all classes of slaughter cattle and there was a genera
lowering of prices, but the losses were less on the bet~r
grade of offerings. Hog prices remained generally stea
during July and then advanced sharply in the first ha
of August, reaching the highest level for the current ye~.
Sheep and lamb prices were reduced further during t e
month.
J
COMPARATIVE TOP LIVESTOCK PRICES
(Dollars per hundrcdwoight)
Beef ateers ....... ....................... .
Stooker steers ........................... .
Butohor oowa ........................... .
Stockor OOIVS ............................ .
Calves ................................. .
Hogs .................. . ................ .
f',:gg::::::::::::::::::::::::::::::::: :
Juiy
1933
56.15
5.50
3.25
July
1934
$7.85
3.50
i;:iJiJ
4.50
4.70
3.00
7.00
4.60
3.25
6.75
Juno
1934
'8.00
4.60
3.05
i;:iJiJ
4.85
S.60
8.00
FINANCE
The demand for Federal reserve bank
credit during the past month continued at
a low level. Member bank borrowings
on August 15 amounted to $398,000 as
compared with $4.39,000 a month earlier, and $3,993,000
a year ago . There were 17 banks indebted to the reserve
bank at the middle of August as against 18 on July 15 and
138 on August 15, 1933. Holdings by this bank of United
States Government securities and of bills purchased in the
open market showed no change during the month. While
there was considerable fluctuation in the reserve deposits
of member banks during the past month, the total of $114,961,000 on August 15 was practically the same as on
July 15. They were, however, approximately double those
on the corresponding date last year. Federal reserve notes
in actual circulation reflected a seasonal increase during the
month, the total of $4,2,121,000 on August 15 being $1,215,000 greater than on July 15 and $8,981,000 larger than
on August 15, 1933. On the latter date there were $5,538,000
Federal reserve bank notes of this bank in circulation.
Operations of
the Federal
Reserve Bank
CONDITION OF THE FEDERAL RESERVE BANK
(In thousands of dollam)
Total cash reserves .. .... .... .... .. ..... . .
Discounts for member banks .............. .
Industrial advances .. ......... .......... ..
Bills bought in open market. ............. .
United States securities owned .. . .... . .. .. .
Other investmonts . ...... ........ . ....... .
Total earning !lSsets ..................... .
Momber bank reaorvo depOBits ............ .
Federal reserve notes in aotual oiroulation .. .
Federal reservo bank notes in aotual oiroulation ................................ .
Aug. 15,
1984
S 96,759
398
3
142
July 15,
1934
$ 94,254
439
None
142
72,018
114,961
42,121
Aug.15,
1933
$ 59,135
3,993
Nono
198
49,124
5
53,320
57,234
33,140
Nono
5,538
·Nono
7k~~~
7~~~~
72,056
114,784
40,906
0;
ing a net increase of $138,000 in total loans. Total loans
the latter date were $20,952,000 lower than on August 4 '
1933. The net demand deposits of these banks totaled $2£7 ,.
054,000 on August 8, which was $3,516,000 larger than our
weeks earlier, and $67,061,000 in excess of those a year ago
Their time deposits declined $965,000 between July l1;n
August 8 and on the latter date were $3,831,000 below t o~e
on August 9, 1933. The reserves of these banks with t e
Federal Reserve Bank showed little change during the four·
week period, but continued considerably in excess of those a
year ago.
d
CONDITION STATISTICS OF MEMBER BANKS IN SELECTED CITIES
(In tbousanda of doUars)
United States aeourities owned .. ... ....... .
AU oth~r stooks, bonda, aud soouritiea owned.
!"oane on 8CQurities . ............... ... ... .
Ali other loons .......................... .
Total ioana ............................. .
Net demand deposits .................... .
Time deposits ...... , .................... .
Rooerve with Federai Reserve Bank ....... .
BiUa payable and rediscounts with Fedoral
Reaervo Bank ......................... .
Auguat 8,
1934
$178,118
53,417
58,384
125,209
188,593
274,054
123,544
72,837
Auguat 0,
1933
$105,981
50,638
59,748
144,797
204,545
206,993
127,375
36,435
July 11,
1984
$177,836
51,147
58,085
124,770
183,465
270,538
124,509
73,480
None
610
Nono
~---------------------------------------------~-
The daily average of net deman.d a~~
time deposits of member banks 1$7~i.
district during July, amounting to
j.
023,000, registered an increase of $6,84,6,000 over the $Pf~i
ous month. There was a gain over July last year of , ~
185,000, which is a larger increase than was shown in el the
Deposits of
Members Banks
.
DAILY AVERAGE DEPOSITS OF MEMBER BANKS
(In thousands of dollars)
A moderate increase in deposits and inCondition of
vestments and a slight gain in loans ocMember Banks
in Selected Cities CUlTed at reporting member banks in
selected cities between July 11 and August
8. While their investments in United States securities were
increased only $282,000 during the period, these banks
added $2,270,000 of other securities to their portfolios. As
compared with the corresponding date last year, holdings on
August 8 of the former classification were $72,137,000
greater, and those of the latter classification rose $2,779,000.
While their loans on securities declined $301,000 between
July 11 and August 8, "all other" loans rose $439,000, mak-
------------------------------------------~---Combined Total
July,
Aug.,
Sept.,
Oot.,
Nov.,
Dco.,
Jan.,
Fob.,
Mar.,
April,
May,
June,
July,
Rooerve City Banks
Country Ba~
Net dcmand Time Not domand Time Net domand dTipos'lDrllJ
deposits deposits deposits deposits depOBita
e
1033 ...... $306,783 $191,055 $196,040 5113,008 $200,743
S~N~~
1933...... 380,177
190,931
101,302
112,665
197,875
77'362
1033...... 400,597
187,608 195,145
110,146
205,452
77'67 2
1938.... .. 436,027
186,936
210,987
109,264
225,040
81'033
1983 ... ... 466,108
187,047
228,265
106,914
237,933
80'566
1983...... 404,176
186,687
240,971
106,132
253,205
sa'891
1034. . .... 505,909
102,214
249,091
108,317
256,818
85'308
1934.... .. 532,717
195,746
261,770
110,348
270,947
84'381
1034. ..... 535,355
192,766
263,201
108,385
272,064
84'933
1934 ...... 528,307
102,548 257,838
107,615 265,659
84'684
1984.. .... 516,090
102,830 253,752
108,146 262,338
83'11 5
1034...... 519,465
192,712 256,456
109,597
263,009
86058
1934. . .... 521,333
197,690 2M,210
112,632
266,123
'
MONTHLY BUSINESS REVIEW
of the two preceding months. While most of the exp~nsion
Over June occurred in time deposits, there was also a sIzable
gain in the net demand deposits of country banks.
The volume reported, which amounted to $525,733,000, was
7.7 per cent below that of the preceding month but showed
an increase of 10.6 per cent as compared with the same
month last year. While one city registered an increase over
both comparative months, there were three cities that showed
declines.
Following two successive months in which
non·seasonal increases occurred, there
was a larger than seasonal decline in the
total debits to individual accounts during
!uly at banks located in principal centers in this district.
Debits to
Individual
Accounts
Acceptance
Market
Acceptances executed by banks in the
Eleventh Federal Reserve District and
outstanding on the last day of July, which
totaled $176,019, were somewhat larger than at the close
of either of the two preceding months but remained very
small as compared with a year ago. The amount reported
on June 30 was $160,330, and on July 31 last year the
volume outstanding amounted to $1,128,966.
DEBITS TO INDIVIDUAL ACCOUNTS
(In tbousands of dollars)
Abileno.........
Austin..........
Beaumont.......
Corsicaua.......
DaUos. .. .......
El Poso.........
Fort Worth......
Galveston.......
Houston.. .. .. .. .
Port Arthur.....
ltoowell.........
San Antonio.....
Shrovoport.. ....
TOKarkana" .....
Tucson... .......
Waco.... . ......
Wicbita Falls.. ..
July
1034
$ 4,517
17,210
17,132
2,094
147,298
15,546
60,717
18,145
126,896
5,027
1,752
48,163
27,610
4,683
7,158
9,908
11,868
July
1933
$ 3,813
14,400
12,662
2,131
131,765
13,452
56,330
17,200
118,350
4,161
2,319
43,604
28,516
5,107
7,038
9,533
0,754
Pcrcentagc
cbange ovcr
year
+ 18 .5
+ 10 .5
+35.3
- 1. 7
+11.8
+15.6
+ ~.~
+'2
+ 7.
+20.8
-24.5
+10 .3
+17.4
- 8.3
+ ~.~
+.
+21. 7
Junc
1034
S 4,889
18,774
16,022
2,175
166,229
~N~r
10'510
141'151
, 08
5,3
2,289
48,887
28,843
~,~~~
10'116
, 94
12,6
6
Percentage
cbangc over
mcntb
- 7.6
- 8.3
+ 1.2
- 3.7
-11.~
La
Savings
Deposits
The total savings deposits of 132 reporting banks located in the Eleventh District
showed a further increase of 0.8 per cent
in July and at the close of the month amounted to $141,378,294., as compared with $140,316,709 on June 30. They
reflected a gain of SA. per cent over the amount held on
July 31 last year, which was reported as $134,0741,501. The
number of savings depositors on record at 122 of these banks
was above that of the same date a year ago, though smaller
than on June 30.
=
_ 7.0
-10.1
5 2
-23'5
- 1'5
- {2
- 2'7
= 12: 1
_ 2.1
65
~
Total..... $525,733
$475,333
+10.6
5569,200
- 7;7bth
"Includes figures of two banks in Toxarkana, Arkansas, located in the Eig
District.
SAVINGS DEPOSITS
Number of
t·
roc~~~ng
n
DCW'mont .... .. ...........
WI"p':~:::::::::::::::::::
ort Worth.. . .. .. .. .. . .. ..
nGHI eston. .. . .. . .. .. .. .. ..
P o~s~nth""""""'"''''
or r IIr .... .......... .
San
Sh Antonio...............
W rovcpor t ................
W~c~ ........... ..........
t\llc~'ta
......
thorsFalls
......
............
...... .
Numbor of
savings
dopositors
8,471
75,042
10078
38: 173
10,725
64,722
5,122
10,569
21,662
10,591
5
3
0"
2
4
4
11"
2
6
3
3
3"
5~'~3
82,
--
ii'25483
Jllno 30, 1934
July 31, 1033
July 31, 1934
Amollnt of
savings
doposits
$ 3,432,416
24,491,300
4,623,830
100,275756,325076
"
28,715,583
1,013,713
14 osa 528
0'125'293
1"
0,034,067
2879149
24:174:762
Amount of
savlnjlS
deposIts
S 3,081,648
23,871,742
3,906,610
10,587,650
0,838,354
28,649,419
1,837,388
13,163,372
9,870,967
5,583,378
2,348,100
21,250,778
Number of
savings
depositors
7,881
72,554
0,663
3126,229857
'
04,239
4,353
17465
21'844
'
10,486
5,570
51,449
_
Porcentage ohango
over year In
savings doposits
+11 .4
2.6
+15.7
- 2.9
.8
.2
4.2
+13 .6
2.6
8. 1
+22.9
+13.8
Number of
savings
depositors
8,429
74,966
10,812
33,123
16,670
06,798
5,073
10,756
21,505
10,586
5,748
53,782
+ 5.4
327,283
+
+
+
+
+
S141 378 294
314,002
$134,074,501
Total . . .. . . . . .. .•.
132
,
',,'
ted th number of savings depositors.
"Only 8 banks in Dallna, 10 ill Houston, and 74 in "All otbcrs ropor
e
.
'l
bsuo
··
4 ....
cbarged oustomors on primo
oommercla
papor
- tbat now eligible for
rediscount undor tbo Fedoral Reserve Act ....... .... : ..... ............ .. .... .
~to oharged on loaDS to otber baDks sooured by b,Us recOlvable . i' . iIj,te;~i (~~t""
4 .... te on loans sooured by prime stock excbango or otbor ourren
00 nks) '
including loans placed In otber markets througb oorrespondont ba .•. : . . •. .. . •. .
D.omand ........................................................... .
note oba~:::l°o~ ~~~mOdiiy ii~p';r' ~~~;cd' by' ;';;rj,j,~u~~ ·;~j,ipi.s·, ·etC·........ .... .. .
Rot'! on ODttie loans . ............ . .......................................... ..
DaUas
EI Paso
2-6
4-6
0- 8
5-6
5-7
5-8
2-8
8
6-8
8
o
Percentage cbango
over montb in
savings dOP06ita
+1.0
- .0
- .8
- .2
.2
.1
+1.3
+1.6
.8
- .6
.5
+3.0
$140,316,709
+
+
+
+
+ .8
Provailing ralas:
AUGUST DISCOUNT RATES
~\0
Amount of
anViDgli
deposita
$ 3,368,166
24,705,208
4,660,073
10,293,725
0,732,645
28,609,022
1,889,895
14,722,213
10,048,112
0,071,140
2,863,633
23,267,277
6-8
Fort Wortb
Houston
San Antonio
Waco
1*7
6
5-7
5- 7
0
6
3-0
5-10
5-10
6- 8
6-10
5-7
5-7
3-7
7- 10
6-8
6-8
6-8
8- 10
6-8
6-8
5-6
8
5~
INDUSTRY
Cottonseed
PrOducts
The operations of cottonseed oil mills in
Texas during July reflected an ap~re
ciable upward trend for t~at m?nth,bemg
conSiderably above the July average, and eVIdencmg. an unseasonable increase over the previous month. OperatIOns .remained, however, on a lower level than in the correspon~mg
mOnth of 1933. At all mills in the United States operatIOns
were likewise in smaller volume than in July, 1933, but
the crushings of seed and the production of oil, cake and
meal and hulls reflected an unseasonable increase over the
previous month similar to that witnessed at Texas mills. The
receipts of seed and the production. of linters at United
States mills evidenced a seasonal declme.
During the 1933-34 sea~on, .whi~h ended July 31, all
operations of cottonseed OIl mIlls III both Texas and the
United States were below the yearly average, and were also
MONTHLY BUSINESS REVIEW
6
in smaller volume than in the 1932·33 season. While ship·
ments of all cottonseed products were considerably smaller
during the past twelve months than in the preceding year,
stocks of all commodities except linters were in smaller
volume at the close of the current season than a year earlier.
This decrease in both stocks and shipments is due to the
curtailment of production. Inventories of cottonseed on July
31 were slightly larger than a year earlier at both Texas
and United States mills.
STATISTICS ON COTTONSEED AND COTTONSEED PRODUCTS
Texas
United States
August 1 to July 31
August 1 to July 31
This Benaon Lnat Benson This Benson Lnat Be.son
Cottonseed received nt mills
{tons) ....... . ... ... . ......
1,349,717
1,482,184
4,155,276
4,542,622
4,151,058
Cottonseed orushed (tons) ... ..
1,345,555
1,558,149
4,620,558
Cottonseed on band July 31
220,038
{tons) . .... . ............ ...
102,048
09,303
224,630
Crudo oil produoed {pounds) ... 397,743,188 474,080,1011,301,789,4051,445,681,407
628,452
720,311
1,887,209
2,003,168
Cake nod meal wodueed (tons)
1,312,435
Hull. produoed ton.) .... .....
365,497
403,655
1,102,185
Linters produoed (running
bales) . . ......... .. ........
231,362
187,484
800,178
741,401
Stocks on hand July 31:
Crude oil (pounds) .. .........
0,485,576 10,816,563 19,980,200 83,013,387
160,874
Cake and meal (tons) .........
19,679
41,794
128,379
31,425
Hulls (tons) .................
11,919
25,480
76,686
26,250
15,125
77,159
70,786
Linters (running bales) ........
Textile
Milling
Due in part to the fact that operations
of domestic cotton textile mills were on
a very low level during June, the usual
curtailment of activities during the month of July did not
materialize, the consumption of cotton being approximately
the same as in June. The comparison with the corresponding
month of 1933 was very unsatisfactory, but due allowance
should be made for tlle fact that cotton consumption in July
last year reached an all time high level for that month.
There were 359,372 bales of cotton consumed during July,
as compared with 363,4,l4. bales in June, and 600,641 bales
in July, 1933. Total cotton consumed in the United States
during the 1933·34 season, which ended July 31, was 5,700,·
558 bales, compared with a total consumption of 6,137,395
bales in the previous season. Inventories of raw cotton held
on July 31 by textile mills were considerably smaller than
at the close of the 1932·33 season.
The customary seasonal recession was witnessed during
July in the consumption of cotton and production of cloth
at Texas textile mills, and these operations were also below
those in the like month of 1933. The demand for finished
products, as measured by orders on hand July 31, was con·
siderably better than in the previous month, and was about
the same as a year ago. Stocks of products held at the close
of July were slightly less than a month earlier, but much
greater than a year ago.
Cotton·growing statcs:
Cotton consumed... . . . . . . . .
On hand July 31 inConsuming estnblisbments.
Publio storage and com·
presses .. . .... . ....... .
United States:
Cotton oonsumed.... . . .... .
On hand July 31 inConsuming establishments.
Publio storage ond oom·
presses ............. . . .
July
1983
289,557
483,846
359,372
600,641
COTTON MOVEMENTS THROUGH THE PORT OF GALVESTON
(Bales)
Receipts . .. ....... . ..........
Exports ............ .........
Stock., July 31. .......... . ...
July
1934
64,676
105,625
....... .
July
1083
57,153
158,618
........
August 1 to July 81
This seoson Last sonaon
2,131,579
2,278,724
2,158,611
2,201,708
434,907
511,493
COTTON-GALVESTON STOCK STATEMENT
(Bales)
For Great Britain . ...................................
For Franoe ...................................... . ...
For other foreign ports .. ................•....•........
For oOll8twise ports .... . .... .. .. ..... •. ... ...... . ..•.•
In oompresses and depots .................. . ...........
Tot.I .... . ........•..•....•.. . .. ........
JulyS1,
1084
2,500
100
26,200
1,000
481,693
-511,403
Receipts ....................
Exports .....................
Stooks, July 31. . . ............
July
1934
81,747
73,773
........
July
1938
08,197
244,389
... .....
-
-
434,097
5,086,573
085,036
1,030,635
5,274,402
5,325,208
5,700,558
6,137,395
1,230,369
1,348,236
5,565,140
5,786,308
-
-
4.ugu.t 1 to July 31
Thl. season La9t season
2,882,801
2,260,106
2,775,660
2,514,174
1,156,132
844,810
-
SEASON'S RECEIPTS, EXPORTS, AND STOCKS OF COTTON AT ALL
UNITED STATES PORTB-(B.les)
-
Receipts ................... . .........................
Exports: United Kingdom .. '..........................
Fr.nce .....................................
~:~~n~Y:::::::::::::::::::::::::::::::::: :
Augu.t 1 to July 31
This soason Last seaao n
9,124,025
7,848,056
1,491,853
1,278,426
869,832
700,024
803,857
649,041
1,848,864
1,318,066
1,069,757
1,031,995
1,748,302
1,845,601
597,934
702,262
8,419,399
7,534,415
3,023,954
2,444,406
August 1 to July 31
This season Last season
4,550,848
-
July 31,
1083
600
3,000
22,500
1,000
407,807
COTTON MOVEMENTS THROUGH THE PORT OF HOUSTON
(B.IOR)
Other Europo . •.. .•............•............
Jaran . . . ..... ................ . .............
Al other oountries .................... " . .. ..
Tot.l foro~n ports ..... ........ . ...... . ..............
Stooks hel at all United Stotes ports July 31. . ..........
COTTON CONSUMED AND ON HAND
(Bales)
July
1934
Exports of cotton during July witnessed
the usual seasonal decline at the ports of
Houston and Galveston, and they reo
mained in substantially smaller volume than in the corre·
sponding month of 1933. During the twelve months of the
past season exports from Galveston aggregated 2,201,708
bales, which represents an increase of 2 per cent over
the previous year's shipments. This increase was more thai
offset, however, by a sizable decline in the total export~ 0d
lint from Houston, the net result for both ports comb me
reflecting a recession of 4.4 per cent. The receipts of cotton
at Galveston during July were in larger volume than a
month earlier or a year ago, while at Houston they were
practically the same as in the previous month, but con·
tinued below those a year ago. The combined stocks of cotton
on July 31 at these ports were 14.8 per cent smaller than
the holdings at the close of the preceding season.
Although total foreign exports of cotton from the United
States during July were equal to the average for that month,
Cotton
Movements
--::
SPOT COTTON PRICES-(Mlddllng BasIs)
(Conts per pound)
New york ..... . ....•.... ... .•....•......
New Orleans .................... . ........
D.III18 .. ........ .. ......................
Houston ..... . ... .... ....................
Galveston ...... . ....... ... .... .... ......
July, 1934
High
Low
12 .10
13.85
13.22
11 .97
12 .80
11 .60
13.15
12.00
13.10
11.95
-
Aug. 15,
1084
13 .60
13.43
13.20
13.40
13.35
.-""
MONTHLY BUSINESS REVIEW
they reflected a large seasonal decline from the previous
month, and were less than half the volume in July, 1933. It
should be considered, however, that movements in July last
year were on an abnormally high scale. Total shipments
during July were 305,820 bales, as compared with 459,226
bales in June, and 692,007 bales in July, 1933. Due principally to sharp reductions in the takings of American cotton
by Great Britain, France, Italy, and Germany, aggregate
foreign exports during the 1933-34, cotton year wer~ much
smaller than in the previous year. Shipments durmg the
past season amounted to 7,534,,4.15 bales, as against 8,4.19,399 bales in the preceding season.
Petroleum
Total crude oil output in the Eleventh
District in July was somewhat larger than
in June, because of the longer month, but it continued to
show a substantial decline from the volume of a year ago.
The production reported in July amounted to 34,,628,950
barrels, as against 34,035,000 barrels in June, and.37,691,200
barrels in the same month last year. On a dally average
basis the yield amounted to 1,117,063 barrels, being l.ess
than in either the previous month or the ~o~reSpOn?I~g
month a year ago. A further expansion in drIllmg actIVIty
occurred in July, there being 1,154, new wells compl~ted, ?f
which 819 were successful, as against 923 completIOns m
Jun e, including 685 producers. The initial output rose from
~,027,834. barrels in the earlier month to 3,205,54,7 barrels
In the latter month.
'1
Daily production from Texas wells during the month
averaged 1,044~072 barrels, which is 17,128 barrels less than
in June, and 107,723 barrels below the level of July, 1933.
In East Texas there was a decrease from the previous month
of 28,800 barrels, which was partially offset by increases of
6,910 barrels and 4,524 barrels in South Texas and North
Texas, respectively. The daily yield in New Mexico and
North Louisiana reflected but little change as compared with
June.
JULY DRILUNG RESULTS
North TOIM . . ..... . ...... .
Central Wcat TOlaa .........
ElIBt TeIM . ...............
South Telna ...............
T..MCo..tal. .... . ........
Com·
pl.tions
304
94
460
138
107
Producer.
187
64
432
68
65
GM
wells
10
4
3
5
2
Fallurca
107
36
25
65
40
Initial
produotlon
47,353
28,531
3,029,803
12,730
33,485
Total TOIM . . .....
New Mexioo .. .............
North Louisiana ... ••... . ..•
1,098
10
46
801
9
0
24
iiJ
273
1
27
3,151 ,902
52,060
685
July tot.Is, distriot . . . .. . . ..
June totals, dlstriot .. . .. . .. .
1,154
023
810
685
34
27
301
211
3.205,547
3,027,834
TOlM COMt.1 (34 gr. and above) ..... .. . . ... . .. ....... .
North TOlna (40 ~r. and .bovo) .. . .................... .
North Louisiana (40 gr. and above) ... ....... .. ... ... '"
August 10,
1034
$1.12
1.03
1.08
August 11,
1938
$ .62
.52
.52
CRUDE OIL PRICES
(Oil statlstlC3 complied by "Tho Oil Wookiy," Houston, TOl48)
OIL PRODUCTION-(Barrels)
North TeIM .. . ... . . . . .. ... ..
Contral Wcat TOIM.... . . . . . . .
EMt TOIM .. . .. . ... . .. .. . . ..
South Telna. . . .. . . ..... ... ..
ToxM Coastal. . . . . . . . . . . . . . . .
Total TOIM . ... .. . ..
Now Modoo . .... . . . ... . .....
North Louisiana . ..... .... , .. .
ToW Distrlot . . .. , ...
July, 1034
Total
Daily Avg.
8,714,550
119,824
5,344.100
172,300
16.320,250
526,750
1,716,150
55,360
5,262,200
160,748
1,044.072
32,366.250
48,218
1.404.750
24,773
767,050
1,117,053
34.628,050
Building
Building permits issued during July at
leading cities in this district reflected a
further decrease of 14..7 per cent from the valuation of the
previous month, and were less than half as large as in the
same month last year. The total reported was $932 005 as
against $1,092,754 in June, and $2,009,479 in July' a ;ear
ago. Despite the unfavorable comparisons, seven of the
fourteen cities registered substantial gains over the preceding
month, and five recorded increases over the corresponding
month in 1933.
Inoreaso or deorense over
Juno, 1934
Total
D.ily Avg.
+255,550
+ 4,524
+181.100
+ 290
-337.250
- 28,800
+262.650
+ 6,010
+168,200
52
+580,250
+ 54,750
+ 8,050
-17,128
+ 218
527
+598.950
-17,437
BUILDING PERMITS
July, 1034
No.
Amarillo .......
Austin . ........
geaumont . . .. . .
Dorr,ua Christl. .
E alns . . . . .....
rl Paao .. .... . .
Gort Worth .... .
nlveaton . .... .
Houaton .. . .. . ..
~rt Arthur . ...
B n Antonio . ...
W'reveport. ..•.
Waco . . .. . .. . ..
iohi ta Falls ...
Total. .. .
Valuation
No.
---- --22
53 1 22,324
83
80
25
340
38
70
103
191
64
115
160
14
86
04,427
30,254
18,505
155,394
13,035
53,308
27,210
259,305
15,948
58,358
130,607
19,919
20,321
Perce.tago ohange
valuation ovor
year
Valuation
36.6
35,233
1
- 31.8
138,514
2.5
40,269
+ 59.1
11,633
+
.8
154,001
- 43 .2
22,944
- 88.7
473,140
- 50 .0
54,440
- 72 .2
032,320
+118.5
7,290
- 31.7
78,165
+324 .0
30,736
- 13.5
23,033
+263 .1
7,653
July, 1933
86
57
31
215
48
78
94
158
38
108
88
19
43
-
--1,430- --$ 932,005 1,085 12,009,479
-
-
53 .6
Junc, 1034
No.
Peroentago chango
valuation over
month
Valuation
-
54 $ 23,575
65,607
70
10,880
91
28,361
25
187,723
391
0,281
38
84,770
78
134,838
121
368,745
186
9,741
64
82,023
151
.9,095
157
11,287
12
16,829
232
-1,679 11,092,754
While both production and shipments of
Portland cement, as reported in July. for
Texas mills, were substantially smaller than in the prevIOu~
month, they reflected larger increases over the same mont
Cement
5.S
-+ 43.7
+ 07.4
- 34.8
- 17.2
+ .0.4
- 37.1
- 70 .8
- 29 . 7
+ 63.7
- 35 .7
+166.0
+ 76.5
+ 74.2
--- 14.7
January 1 through July 81
1988
1934
Valuation
No.
Valuation
No.
125 $ 110,419
198 $ 188,929
481,069
624
1,030,347
511
521
112,025
159,862
504
182,720
158
97,855
166
1,276,321
1,411,606 2,362
2,677
142,845
247
118,634
260
2,321,129
454,148
585
545
619
262,261
339,360
811
2,085,127
2,868,855 1,157
1,281
260
88,057
45,438
314
445,077
948
652,470
922
517,638
094
225,075
1,059
195,154
174
196,310
126
205
106,806
53,868
448
9,912
17,532,135
8,679
S 8,596.288
Percentago cbange
valuation ovor
period
+ 71.1
- 58 .5
+ 42 .7
+ 86 .7
+ 10.6
+ 20 .4
- 80 .•
+ 29 .4
+ 37.6
+ 93.8
- 31.8
+130.0
.6
+ 98 .3
- - 12-.4
last year than were shown in June. The month's output
amounted to 321,000 barrels, as against 377,000 barrels in
June and 274~000 barrels in July a year ago. Shipments
totaled 288,000 barrels, which compares with 339,000 bar-
8
MONTHLY BUSINESS REVIEW
rels in the preceding month and 237,000 barrels in July,
1933. Inventories on July 31, which aggregated 628,000
barrels, were 5.5 per cent higher than at the close of June
but 17.9 per cent below the level of a year ago.
PRODUCTION. SIDPMENTS, AND STOOKS OF PORTLAND CEMENT
(In thousands of barrels)
Produotion at Texas mills ..... . ... . . .............. . ..... . ..... . . . . . .... .. .. .. .... ... ........ .. . .. ... ..... .. ..... . .. . ..
~t~~kse~:~!d°:,c !~~ti, ~~~ci~M 'miliS :: : :: :: : : :: : : :: :: : : :: : :: : :: : :: : : ::: : : : ::: :: : ::: : :: ::: : :: : :: : :: :: : : :: :: : : :: : :: : :: : ::
July
1934
321
288
G28
Percentage
change from
July
June
1933
1934
+17.2 -14.9
+21.6 -15 .0
-17 .9 + 6.6
January 1
through
Percentage
change over
July 31.
1934
year
2,257
2,182
5.7
:\:4.8
SUMMARY OF NATIONAL BUSINESS CONDITIONS
(Compiled by the Federal Reserve Board. August 28. 1934)
DISTRIBUTION
Industrial production declined in July. Factory employment and payrolls also decreased. Diminished output of
steel was the chief factor in the decline of industrial activity,
which was larger than is usual at this season of the year.
The general level of wholesale commodity prices showed
little net change for July and advanced in the first three
weeks of August.
Total volume of freight-car loadings declined in Ju~y,
reflecting chiefly a reduction in miscellaneous freight, ~n
cluding steel shipments, offset in part by an increase in shIPments of livestock. Department store sales showed a decrease
of somewhat more than the estimated seasonal amount.
PRODUCTION AND EMPLOYMENT
COMMODITY PRICES
Volume of industrial output, as measured by the Board's
seasonally adjusted index, decreased from 83 per cent of the
1923-25 average in June to 76 per cent in July. This decline
reflected chiefly a sharp reduction in the output of steel, due
in part to previous accumulation of stocks by consumers;
and there was a further decline in steel operations during
the first three weeks in August. Activity in the automobile
industry decreased and there were considerable reductions
in the output of pig iron and anthracite. At textile mills,
where operations had been at a low level in June, activity
showed little change in July. Output of shoes showed a seasonal increase. Accompanying heavy marketings of cattle
from drouth areas there was a considerable increase in
activity at meat packing establishments. Factory employment decreased between the middle of June and the middle
of July by 3 per cent, an amount larger than is usual at this
season. There were reductions in many industries producing
durable manufactures, such as iron and steel products and
building materials, and also at establishments producing
knit goods and women's clothing. At canning establishments
the number of employees increased by less than the usual
seasonal amount. Employment on public projects increased
further in July. Value of construction contracts awarded,
as reported by the F. W. Dodge Corporation, was about
the same in July as in June. Department of Agriculture
estimates, based on August 1 conditions, indicate that yields
per acre for principal crops are 22 per cent smaller than
the ten-year average, reflecting the effects of the drouth.
The wheat crop is estimated at 491,000,000 bushels, 37,000,000 bushels less than last year's small harvest, and the corn
crop at 1,607,000,000 bushels, as compared with a five-year
average of 2,516,000,000 bushels. The cotton crop estimate
is 9,195,000 bales, about 4,000,000 bales less than last season and smaller than in any other year since 1921.
Wholesale prices of farm products, after fluctuating
widely in July, advanced considerably in the first three
weeks of August. Between the beginning of July and the
third week of August, cotton, wheat, and hog prices showed
substantial increases while cattle prices declined somewhat.
During this period prices of commodities other than farm
products and foods as a group showed little change.
BANK CREDIT
Member bank reserve balances increased further between
the middle of July and the middle of August, and on
August 15 were about $1,900,000,000 in excess of legal
requirements. The increase in reserve balances reflected
principally a further growth in monetary gold stock offset
in part during the first half of August by a seasonal increas
in the total volume of money in circulation. The volume 0
reserve bank credit showed little change. In the four we~ks
ending August 15, loans and investments of New York C11Y
banks decreased by $141,000,000, while those of week Y
reporting banks in other leading cities increased by $11 6,.
000,000. The decreaslil at New York banks reflected a reduc.
tion of nearly $200,000,000 in loans to brokers and dea!ers
in securities, following a sharp decline in security prlC?S
in the latter part of July, and a decline of $52,000,000 In
holdings of United States Government securities. All other
loans and holdings of securities other than United States
Government obligations increased substantially at New Yo~
banks and at banks outside New York City. At outside ba~ s
holdings of United States Government securities also In'
creased. Average rates of discount on United State;
Treasury Bills issued rose from .07 per cent in July to .2
per cent on August 22. Other open market money rates reo
mained unchanged at low levels.
f
@FedFRASER