View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

MONTHLY BUSINESS · REVI EW
of the

FEDERAL

RESERVE

BANK

of

Dallas

~~~======================================================================================~

~~================================================================================N=o~.=7~
Volume 29

Dallas, Texas, September I, 1944

DISTRICT SUMMARY

I' Consumer buying at department stores in this district dec ~ed by less than the usual seasonal amount from June to July
a~ Was 12 per cent larger than that in July, 1943. Sales of furitture stores were in about the same volume as in July last year.
eflecting the heavy demand for petroleum products for war
~~rp?ses, daily average production of crude petroleum in this
. IStnct rose to a new peak in July and on the basis of allowables,
Is ixpected to expand further in August and September. The
late of construction contracts awarded declined further in
u Y and Was at the lowest level of the current year. Lumber and
T~ent production continued in smaller volume than a .yea.r al?o.
d ~ hot, dry weather, which prevailed over much of this dlstnct
. urtng July and the first half of August, caused a deterioration
n growing crops and in livestock ranges. While scattered rains
f aVe relieved the d~ought in some areas, general rains are needed
?r crops to permit preparation of soil for fall seeding operations, to revive ranges, and to replenish stock water supplies.

h

BUSINESS
The dollar volume of sales at department stores during July
Was 12 per cent above that of a year ago and showed a less than
seasonal decline from that in the preceding month. On a daily
~verage basis, the adjusted index rose to 277 per cent of the
.935-1939 average, thus superseding all other peaks in the adJUsted series since 1919. During the first seven months of this
Year the dollar volume of sales exceeded that of the comparable
period a year ago by 15 per cent.
of Da~a available on sales by departments for the first six ~onths
this year depict the type of transactions which contrtbuted
gre~tly to this continued rise over those a year ago. During this
period sales of women's and misses' clothing and ready-to-wear
~ccessories, which constituted approximately 45 per cent of the
Otal sales volume reported, were 19 per cent above those for the
sarne
. d Iast year.
'
.,
d
peno
Reflecting the effects 0 f rattomng,
t he
f ernand for women's and children's shoes remained unchanged
/orn a year ago. Sales of men's and boys' apparel during this
alX-rnonth period were up 6 per cent over last year principally as
thresult of the increase in the demand for furnishings. During
p e same period, the demand for men's and boys' shoes and slipr::: ~ecreased considerably from that of a year ago. Despite the
of hlcted manufacture of many durahle goods, aggregate sales
tho ouse furnishings increased 10 per cent over last year. A~­
a ugh sales of refrigerators, stoves and other household apphces decreased tremendously from the low volume of last year,
as ~ de~and for items that were available in some quantity, such
I llrnlture, domestic floor coverings, draperies, lamps, etc., was
ge enough to counterbalance the decreases mentioned abo.ve.
a reported increase of 45 per cent in sales of pictures, fram.mg
f n mirrors during chis six-month period over a year ago IS a
~rther 'indication of the consumers' desire to add items of
r auty to their households. Among small wares, sales increases
Ianged from only 1 per cent for silverware to 77 per cent for
aces, trimmings, embroideries and ribbons. An increase of 43
pe~ ~ent in the sales of stationery reflects to a great extent the
'7lttng habit stimulated by the numerous separations as a result
o War conditions.

th

thd

The furniture outlook for the immediate future remains unfavoraple as a result of the recent lumber restrictions. Inventories at reporting furniture firms in July were 17 per cent lower
than a year ago, whereas sales remained at approximately the
same level as last year.
AGRICULTURE
Hot, dry weather prevailed in most sections of the Eleventh
throughout July and the first two weeks of August. By
mid-August, the shortage of moisture was critical in the north,
west central and extreme southwest portions of Texas and was
becoming serious in all other sections of the State except in the
southern part of the High Plains and in some northwest and
north central areas. The high temperatures and the lack of rain
favored harvesting of wheat, hay and early feed crops but hindered the plowing of small grain fields in preparation for fallsowing, reduced prospects for corn, cotton, sorghum, late hay
and sweet potatoes and held back range growth in most sections
Harves~ing of early hay crops made go?d progress generally, and
harvestmg of corn, peanuts and gram sorghums is active in
southern counties of Texas. Recent rains in Louisiana have relieved droughty conditions and improved late crops.
D~strict

High temperatures and depleted soil moisture caused cotton
to s~ffel' in n:ost of ~exas. and even though the crop was still
holdmg up fairly well 10 spite of these conditions, growth of the
late crop had almos~ scopped, and shedding caused by the high
temperature was qwte general. Moisture conditions were more
favorable on the South Plains and in the Cross Timbers area
where the crop was making good growth and was fruiting well'
but surface moisture was becoming scarce. All other areas of th~
State were in urgent need of moisture and cooler weather. Picking was well advanced in the southern portion of the State and
had started in some south central counties, with pickers reported
to be adequate in counties where picking had begun.
Harvesting of wheat in Texas was practically completed by
mid-August with production indicated at 77,071,000 bushels,
4,166,000 bus.hels above the July 1 forecast, reflecting better
Yields than preVIOusly expected and weather conditions favorable for harvesting operations. The indicated yield per acre as
estimated by the Department of Agriculture, was 18.5 bushels
on August 1, as compared with 17.5 on July 1, 11.0 bushels in
1943, and the 10-year average of 9.7 bushels.

0:

The Department of Agriculture reported that stocks of old
wheat in Texas interior mills, elevato,rs and warehouses on July
1, 1944, were estimated at 240,000 bushels, as compared with
4,900,000 bushels a year ago, and the eight-year, 1935-1942
average of 1,280,000 bushels. Stocks stored on Texas farms wer~
estimated at 909,000 bushels, as compared with 5 218 000
bushels a year ago and the eight-year average of 574,000 bushels.
The combined stocks of old wheat on farms and in interior
mills, elevators and warehouses amounting to 1,149,000 bushels
are the lowest since 1937 and only about 11 per cent of the 10,118,000 bushels reported on the same date a year ago.
Total acreage planted to grain sorghums in Texas was estimated at 4,706,000, a record high, comparing with 4,357,000
acres last year, and the 10-year average of 2,208,000 acres. Har-

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

2

MONTHLY BUSINESS REVIEW

vesting of the grain sorghums was largely completed in the
commercial areas of southern Texas early in August but was just
starting in the Low Rolling Plains. Total production of grain
sorghum was forecast at 82,355,000 bushels, as compared with
71,817,000 bushels last year and the 10-year average of 33,790,000 bushels, reflec ting both the larger acreage and higher yields.
The indicated yield per acre is 17.5 bushels as compar~d with
16.5 bushels last year and the 10-year average of 14.6 bushels.
Total acreage planted to peanuts was estimated at 770,000,
which is a decline of 15 per cent from the 906,000 acres planted
last year. The 1944 production of peanuts for picking and
threshing was estimated at 308,000,000 pounds, as compared
with 298,980,000 pounds last year and the 10-year average of
144,255,000 pounds. The yield per acre is indicated at 400
pounds, and compares with 330 pounds last year and the 10-year
average of 470 pounds. The prospective pecan crop is indicated
at 36,750,000 pounds, which is an increase of 41 per cent over
the 26,000,000 pounds harvested last year, and the largest since
1940. While the recent heat wave has affected adversely prospective production over a considerable area, most areas still have
a fair crop in sight.
The corn crop is largely made, except in the High Plains
areas. Although the hot, dry weather during July was tmfavorable for the crop in the heaviest corn producing sections, much
of the crop had matured by July 1. The August 1 estimate of
the Texas corn crop was placed at 64,649,000 bushels, which is
2,487,000 bushels below the July 1 estimate, approximately 27
per cent under the 1943 harvest of 88,416,000 bushels, and
10,920,000 bushels below the 10-year, 1933-1942, average production of 75,569,000 bushels. This year's yield was forecast at
13.0 bushels per acre, compared with 16.0 bushels in 1943 and
the 10-year average of 15.3 bushels.
Rice prospects declined during July and production is now
forecast at 18,816,000 bushels, as compared with the estimate
of 19,920,000 bushels a month ago, 20,196,000 bushels in 1943,
and the 10-year average of 12,004,000 bushels. Broomcorn pro;
duction is estimated at 8,900 tons, compared with only 2,700
tons last year and the 10-year average of 4,450 tons. The large
production this year reflects the greatly increased acreage and
the high per acre yield.
Harvesting of the few remaining commercial truck crops has
reached into the latest producing areas. Cantaloupes for the remainder of the season will come mainly from the Pecos section
but watermelons of good quality are still available in volume.
Harvesting of onions proceeded under favorable conditions in
the Panhandle area with good yields and quality reported. Irish
potato production was estimated on August 1 at 4,752,000
bushels, as compared with 6,450,000 bushels last year and the
10-year average of 3,516,000 bushels. Sweet potato production
was forecast at 4,255,000 bushels, as compared with 5,616,000
bushels last year and the 10~year average of 4,332,000 bushels.
During July, the condition of range feed and pasturage deteriorated more sharply than usual in most of the district due to
excessive heat and lack of moisture. Range conditions are generally poor to fair in southern New Mexico and over most of
Texas, with a shortage of stock water reported in many areas,
although conditions in New Mexico were improved by July
rains. In the Panhandle and High Plains area 'o f Texas, pasturage
and range feeds were generally good as a result of more adequate
moisture. Parts of the Low Rolling Plains and eastern Texas
were improved by mid-July rains, but much of the area is still
dry. Cattle in the Panhandle area are in generally good condition, but in many other sections they are either just holding up,
or beginning to show shrinkage as a result of the continued dry,

hot weather. The condition of sheep declined considerably during July due to the high temperatures and the deterioration 01
range foods over much of the sheep country.
Receipts of livestock at the For t Worth and San AntoniO
markets during July declined rather sharply from the record
movements during May and June. Receipts of cattle, calves,
hogs and sheep at the two markets during July totaled 694,800
head, which was 359,000 head less than in June, but 159,600
head more than in July last year. During the latter part of June
CASH FARM INCOME- (Thousands of dollnrs)
- - May 1944
Total reeoipt.s - - - J
-Receipts from~ May
May
J anunry 1 to MaY 3
Crops Livestock·
1044
1043
1044
1943
Ariz.o~a.................
4,042
5,080
9,122
8,365
63,372
64,83 1
LcUlslDna..... . ..... . . ...
7,691
5,537
13,228
14,508
67,700
58,9~
New Mexioo... . ..... ....
374
4,941
5,3 15
5,040
24,338
30,09
Oklahoma........ . ......
1,855
20,523
22,378
21,914
121,595
116,903
Tex....... ... ....... .. .. 22,034
01,520
84,163
78,308
390,210
304,04 6
Total . . . . . . . . . . .

36,590

97,610

134,206

129,044

-

667,323

664,826

· Ineludes receipts from the sale of livestock and livestock produots.
SOURCE: United States Dopartment of Agriculture.

LIVESTOCK RECEIPTS-(N umbor)
- - -Fort Worth---~-- San Antonio---Jul y
July
June
July
July
JunO
1944
1943
1944
1044
1943
1944
Cattie...... .... ... .. .. . . 97,679
65,432
105,840
27,760
14,763
30,75~i
Calves .................. 37,500
24,646
32,082
23,584
17,606
10'9il
rhoo'l,"p.'.'.'.' .' ::: :: :: : : : : : ::

3~g~g 2~6:~~~ 6~~:~~~

~~:~~i

3N~~

~~:OsD

COMPARATIVE TOP LIVESTOCK PRIOES
(Dollnrs per hundred weight)
- -- Fort Worth
July
JUly
1944
1943
Beef steers ............. . . S15.50
$15.50
Stocker stcers . . .. . . . .... . 11.00
13 .50
Heifers and yearlings .....
15 .50
15.25
Butcher oows . . ...... .. ..
11 .25
12.25
Calves . . . . ...... . .......
13 .25
14 .00
14 .55
14.50
14.00
14.00

~:b';.':::::::::::::::::

June
1044
$10.10
12 .85
16 .00
12.00
14.00
13 .05
14.75

July
1944
$13.75

.iil:oo

10.40
13 .00
14 .25
12 .00

San Antonio---July
Juno
1044
1943
i14 .50
$13. 15

' '' '(j)
14 '00
12 .

14.00
12.00
14.00
14 .25
13.00

14.10
13. 66
13.26

COTTONSEED AND COTTONSEED PRODUCTS
- - --Texas
United States---August 1 to JUly 31
August 1 to July 31
This
season
Last
season
This
season
Last seaBOD
Cottonseed received nt mills
(tons) ........... .. .. ..... .
940,668
1,054,064
3,983,513
4,516,087~
Cottonseed crusbed (tons) .... .
953,838
1,043,250
3,953,588
4,497,7
Cottonseed on hand July 31:
(tons) .................... .
31,499
44,669
118,701
gO,386
Produotion of products:
Crude oil (thousalld Ibs ) ....
Cake alld meal (tons) .... . ..
Hulls (tons) ....... .. ......
Linters (running bales) ... . ..

287,475
451,339
226,000
284,450

300,135
466,717
258,960
308,280

1,235,938
1,834,054
926,451
1,183,115

1,904,6
1,085,034
1,355,1 01

Stooks on hand July 31:
Crude oil (thousand lb. ) . . ..
Cake and meal (tons) . ..... .
l:Iulls (tons) .. .............
Linters (running halos) . . . ...

1,964
8.860
3,342
17,917

1,357
5,678
2,321
42,807

8,847
27,776
14,677
63,059

18:5~~
11,0

1,400'~f

6307

135,927

DOMESTIC CONSUMPTION AND STOCKS OF COTTON-(Bales)
July
Consumption at:
1944
TexllS mills... ...........
18,3 11
United States mills .... .. .
724,167
U. S. stooks-end of month:
In consuming estah'ments. 1,873,187
Publio stg & comprosses.. 8,245,641

July
1043
24,319
830,868

June
1944
17,037
805,735

August 1 to July ~OD
This sellSon Last 60
207,537
267,4~
0,942,070 11,100,0

2,115,323
7,676,629

CROP PRODUCTION-(Thousands of units)

~-- TexllS--~- Eleventh Distriot/

Crop
Winter wheat .. . ... ..... .
Cotton ...... .... . .. .... .
Corn ................... .
Oats . .. . ...... . ........ .
Barley . .............. . . .
Tame bay ... . ........ . ..
Potu toes, IriRh ... .. ..... .
Potatoes, sweet ......... .
Rice ......... . ......... .

Unit
Bushels
Bales
Bushels
Bushels
Bushels
Tons
Bushels
Bushels
Bushels

Estimated
Aug 1,1044
77,071
2,450
64,049
42,471
8,428
1,405
4,752
4,225
18,816

• Arizona, New Mexico, Oklahoma and Texas.
only.

~Texas

Estimated
1943
Aug 1,1944
36,360
78,111
2,823
3,117
88,410
74,806
21,780
47,978
3,341
17,811"
1,469
1,968
0,450
5,731
5,616
12,421 t
20,196
18,816 ~
tLcuisiana, Oklahoma and

SOURCE: United States Department of Agrioulture .

rOJas·

MONTHLY BUSINESS REVIEW
and July, a large percentage O'f the total movement was made
~P of sheep and spring lambs. Even though the number of breedIng ewes in Texas on July 1 this year was about 9 per cent
srnaller than a year earlier, the Department of Agriculture rerOtted that the sharp increase in percentage lamb crop from 63
St year to 71 this year resulted in a lamb crop of 4,589,000
lead, which is about 2.5 per cent larger than for 1943 and is
nly a'bout 3 per cent smaller than the record crop of 1941. The
eXas lamb crop is the largest percentage of total western and
total United States crops for any year of record.

t

r

. Average prices received by Texas farmers in July on such

(~~rns as corn, cottonseed, potatoes, wool, eggs and butter were

s l?htly above those of the previous month. On the other hand,
Prtces decreased moderately for small grains, meat animals, newcrop hay items, grain sorghmns, chickens, turkeys and old-crop
peanuts; although the declines were relatively small, it is the
Ncond consecutive month that lower levels have been reported.
e~ertheless, prices for all commodities in these groups, except
&ba1n sorghum, meat animals and chickens, are considerably
a OVe levels obtaining at this time last year.
FINANCE
d' T~e gross demand and time deposits of member banks in this
wtnct, which increased sharply during the period of the Fifth
ar Loan Drive, averaged $3,905,000,000 during July. This
~~era~e, which represents a newall-time peak, was $247, 000.'Ju~ higher than t~at in June an.d $788,0 00'.000 a~ove that 111
Y last year. While the expansIOn of depOSits dUl'lng the past
~\vo months has been most pronounced at reserve city banks, it
I as also been substantial at country banks. The volume of war
n deposits at depositary banks in this district which reached
~'foW point of $127,200,000 shortly after the opening of the
theth .War Loan Drive rose to a peak of $566,0 00 ,0 00 around
a tnl~dle of July, but by August 15, the total had declined to
pproxllTlately $5 00,000,00 0.
J The reserve balances of member banks in this district during
u~y averaged $540,121,000, which was approximately the same
as In June, but about $63 300000 higher than in July last year.
.
'
,
nunng
the first half of August, reserve balances rose to a new
pea~ of $58 0,26 2,000 and averaged $571,262, 000 for the
brl~d, which was about $31,000,000 above the July average.
urmg July w hen a large volume of customer deposits at banks
;as transferred to reserve-exempt war loan accounts i.'l payment
Or Government securities, required reserves declinell. and average excess reserves rose approximately $17,0 00,000 tV the high~t leVel reached during the past year. During the first half of
I ugust, the Treasury made substantial withdrawals from war
,can accounts and as the funds were disbursed, customer deposits
~ncreased bringing about a rise in required reserves of member
banks. However, the reserve balances of member banks increased
Y a greater amount than required reserves with the result that
excess reserves
.
.
l11creased
further.
b The circulation of Federal Reserve notes of this bank declined
a OUt $9,000,00 0 between July 6 and July 26, which is considcrabl Yarger
I
. of the mont,
h but 111.
than usual at that penod
~cased rapidly thereafter and amounted to $480,900,000 on
Ugust 15. This amm.mt was about $14, 000,000 higher than a
rnonth earlier and $140,000,000 greater than a year ago.

°i

shaThe deposits of weekly reporting banks which had risen
$l?ly between June 14 and Julyl2, increased further by about
,168,000 during the four weeks ended August 9. In the lat~er p~riod, Government deposits consisting mostly o,f war loan
epOSIts declined nearly $40 000 000 but the expansion in other
.
'
,
,
dePOSits
more than offset this decline. The increase of $12,100,-

CONDITION OF THE FEDERAL RESERVE BANK
(Thousands of dollars)
August 15, August 15,
1043
1044
581,773
653,586
Totnl cas!. resorve., . , , . ................ , ........ .
Nono
50
Disoo unts for member banks" . .... . ...... , ........ .
Nono
18
Industrinladvanoes .... "., .. , , .. ,. ,., .... ....... .
527,000
231,620
United States Govomment securities, ...... , .. ..... .
527,000
231.688
Totnl cornin g assets, , .. , . , . , .. , . . . , . , , . , . , ...... .
493,908
574.808
Mombor bank reservo doposits, ..... , . , , , , . . . , . , .. .
480,906
340.898
Federal Reservo Notes in aotual oiroulation, ., .. . , .. .
"Inoluding nonmember banks.

July 15,
1944
56?J 497
. Nono
None
523,985
523.985
540.403
466,945

CONDITION STATISTICS OF 33 MEMBER BANKS IN LEADING CITIES
(Tbousands of dollars)
August 9, August 11,
July 12•
1944
1043
1944
Total loans and investmonts . . , ... , , . , . , .... , . , , , . . $1,564,807 $1.230.738 $1,546,048
Total loans.. ..................................
343,710
274.325
374.323
Commoroial, industrial, nnd a~ricu l turalloans.,. .
236.331
109,058
249,620
Loons to brokor. nnd dealers 10 soouritios" .. ,...
2,605
1,647
2877
Other loans for purohasing or carrying .eourities. .
41,013
13,626
56:178
Real estate loans .. , .. , . , ........ , ..... .... , . .
20,389
10,341
20,234
Lonns to blink........... , ... . , ...... , . , , , , . . .
421
132
211
All otber loans .... .... , .... ,.,., .... " .. , ·,··
41.061
40.521
45,203
Total investmonts .... . . , ... , ... ··,·,,······,,·· 1,221,007
056.413
1,172.625
U, S. Treasury bills""." ... , .. , " ., .... ,....
12n.652
114,476
102.849
U. S. 'I'reasury cortifioates of indobtodnCS9.......
352,482
230,605
332,685
U. S. 'rroasury notes .. , . .......... ,.,., ,......
216,894
151,285
213,710
U. S. Govorament bonds, . . , ... ,., . ".,,·.....
460.334
351.004
457617
Obligations guaranteed by United Statos Gov't..
20,620
54,406
21:703
Othcr seourities, , . ............... ... .. .......
44.106
53,647
43.071
Rescrves with Federal Rcserve Bank ... .. . . ".,.,.,.
322,818
295.953
326.042
Bllianoes with domestio banks" . . ...... .. . , ., . . , .,.
228,578
238.782
231,004
Demand doposits-adjusted"... ................... 1,075.048
1.011.639
1,040.988
Timo doposlts......... .. .. ...... .......... .......
190,378
147,159
186,590
310.220
130.080
349,989
United Statos Governmont doposits" . , .......•.. , , ,
Interbank deposits ... ...... ,",., ...... ,",·,',·,·
478.604
424.128
466515
Borrowings from Fedoral Reserve Bnnk, ... .... .....
Nono
Nono
Non.
~Tnolud es all domand doposit~ other than intorb~nk and United States Govornmont less
cUllh Items reported as on hand or In proccss of collootlOn .
'
DEBITS TO INDIVIDUAL ACCOUNTS
(Tholls~nds of dollars)
Potg ehango
July
July
1044
1043
over year
Abilello ................. $ 17,289
15.240
+13
Amarillo.. .. .. .. .. .. .. ..
48.205
48.004
+ 12
Austill. .............. ".
70.759
80,lI 8
- 12
Beaumont.. . ............
56.739
53.761
+ 6
Corpus Christi ....... . ".
53.162
41.015
+27
Corsicana ............ ".
6.449
6,135
+ 5
Doll....................
514.319
446.888
+15
EI Paso.. .. .. ... .. . .....
52.246
53.298
- 2
Fort Worth ..... , ..•• , .. ·
215.168
237.994
- to
Galveston ..... ....... ".
45,986
89.010
+18
Houston"...... ..... .. ..
528,794
456.881
+16
Larcdo", , ...... ,. ......
11.380
10.951
+ 4
Lubboek .... ..... " .....
23.943
20.558
+16
Monroe "., .. ,..........
16.668
14.488
+15
Port Arthur, . . . .. . ... .. .
24,138
18.050
+27
Roswoll. ...... ..........
8,587
7,315
+17
San Angelo .. . ..... , . ... ·
16,563
15,484
+ 7
San Antonio .. , .. , .... ,..
154,536
128,401
+20
Shroveport ...... "......
72,879
64,554
+18
Texarkana"..............
18,940
15.058
+26
Tneson... .. ............ .
27,364
31.239
- 12
Tyler
22,460
18,488
+21
Waco:: :: :::::::: : ::::::
26.403
28.4 12
+13
Wichita Falls. .. .... .. ...
28.582
23,866
+20

June
Pctg chango
1044
over month
10,602
- 12
44.632
+ 8
08.450
-28
57,364
- 1
51,402
+ 3
6,468
t
582.166
=12
59,888
-13
232.082
- 8
53,116
-18
597,248
-11
13.090
-18
26.700
-10
17.983
- 7
25.080
- 4
0.445
- 9
21.596
-23
163,518
- 5
83,064
-12
20,951
-10
30,239
-10
24,316
- 8
80,468
-13
32,652
-13

Total- 24 oities" ... , .... $2,061,454 $1.866,957
+10
$2,302,373
- 10
"Includes the figures of two banks in Texarkana, Arkansns, located in the Eighth Distriot
tChango Icss tban onc-balf of one per cent.
.
GROSS DEMAND AND 'TIME DEPOSITS OF MEMBER BANKS
(Average of daily figures-Thousands of dollars)
Combined total
Reservo oity bonks
Country banks
Gross
demand
1042 ........ " ... $1,014,513
July
July
1943 ............ · 2,874.871
Maroh 1044., .... ,., .. , · 3.320,227
April 1044 .......... ,,· 3.292,252
May 1044.. ...... . .... 3.275.467
Junc 1044 .. .. ..... ·· ,' 3,361,412
July
1944 ............. 3,601,462

Gross
Gross
Time
domand
Time
domand
Tim.
$226.947 $1,005.607 $127,615 $ 818.006 $ 99,332
241.779 1,562,343 143,301 1.312.528
08.478
277,705 1.725,856 171.302 1.594,870 106,318
284.538 1,709,275 175,621 1,582,077 108,918
291.289 1.094.017 180.464 1,581.450 110.775
296,055 1.749,241 184.628 1,612.171 112,327
303.710 1,000.222 187,985 1,701.240 1J5,734

SAVINGS DEPOSITS
July 31, 1044

Beaumont .... ..... ····· .
Dallas, ...... .. · .. · .... ,
El Paso ...... .. .... · .. ··
Fort Worth ......... · .. · ·
Galveston ...............
Houston .......... .... · ..
Lubbook, ... , ...........
Port Arthur .. . ..... , ....
San Antonio, . .... .. . , ...
Shreveport .. ........... .
Waeo" .... ,· .. ,,··· ....
Wichita Falls .. , .........
All other, .............. .
Total ...........

Number of
roc:orting
anks
3
8
2
3
4
10
2
2
5
3
3
3
68
100

Percentage ebBD~e in
,",vings deposits rom
Number of Amount of
July 31,
savings
savinll'l
June 30,
depOSIts
1943
depositors
1944
11,425 $ 5,537,680 +18.1
+ 1.2
42,943.100 +36,2
101,560
+ 2.0
13.1 36,438 +38,1
24,000
+ 2.6
20.028.764 +31.0
35.048
+ 1.8
14.627,688 +20,7
21,002
+ 1.8
22 3
44.862.545
84,606
+ 1.0
.
490.282
6.1
826
+ ,0
3.704.548 +17.3
5.802
+ .a
27.075,884 +27.7
31,080
+ 2.2
10.472,141 +28.8
28,904
+ 2.8
5,604,702 +18.2
8.198
+ 1.4
3,732,706 + 5,5
0,815
+ 1.0
83,440,314 +17.2
58.268

t

+1.4

413,689

$231,755,751

+25.8

+ 2.0

4

MONTHLY BUSINESS REVIEW

000 in interbank deposits reflected an extension of the rise that
has been in progress since April. These deposits, which amounted
to $478,600,000 on August 9, were at an all-time high level.
During the four-week period, these banks made net withdrawals
of $3,224,000 from their reserves with the Federal Reserve
Bank and $2,521,000 from their balances with correspondents.
The loans of reporting banks, which had risen $46,000,000
between June 14 and July 12, declined approximately $31,000,000 during the subsequent four weeks. During the Fifth War
Loan Drive, the loans for security trading, representing mostly
loans secured by Government securities, increased about $28,000,000. A considerable amount of these loans were made to
purchasers of Goverrunent securities in anticipation of liquidation out of future income, but the decline of $14,300,000 in
these loans during the four weeks following the close of the
drive suggests that a substantial amount of the total represented speculative purchases for subsequent resale in the market or to banks. Commercial, industrial and agricultural loans
declined $13,300,000 between July 12 and August 9, after having increased by $17,000,000 dunng the preceding four weeks.
During the four weeks ended August 9, the reporting banks
utilized the funds derived from the increase in deposits and the
decline in loans to expand their holdings of Government securities. Total investments increased during the four weeks by
$48,472,000 to a new peak of $1,221,000,000. The increase in
holdings consisted chiefly of Treasury bills and certificates of
indebtedness. During the drive when required reserves declined,
some of the banks repurchased Treasury bills previously sold to
the Federal Reserve Bank and in' addition made substantial purchases through subscriptions to weekly offerings, with the result
that total hOldings on August 9 were at the highest level since
July last year. During the past eight weeks, these banks have
also added approximately $77,000,000 to their holdings of certificates of indebtedness.
INDUSTRY
The aggregate value of construction contracts awarded in the
Eleventh Federal Reserve District during July amounted to
$9,004,000, which was about 11 per cent below the figure for
the previous month and approximately 38 per cent less than in
July, 1943. The total value of awards for the first seven months
of this year was $89,716,000, representing a decline of about 65
per cent from the aggregate of $259,448,000 for the same
period in 1943. Even though there was a gain of approximately
13 per cent over the preceding month in the value of awards
for residential construction, the volume was about one-third
smaller than in July last year, and marked declines from the
preceding month and the corresponding month last year occurred in all other types of construction.
The demand for lumber in this district and in the United
States increased considerably following the inauguration of the
national defense program in 1940, reflecting the rising civilian
requirements and the needs for lumber for military construction. Although lumber production rose steadily from 1939
through 1942, output was apparently insufficient to 11leet the
civilian demand and the rapidly expanding military requirements. Since the early part of 1943, the situation has become increasingly critical, largely because 01 the decline in pro.;luction
brought about by manpower shortages and the exceptionally
heavy demands for war purposes. In the earlier years, the war
demand consisted chiefly of lumber for construction purposes,
but as the construction of military establishments and plant

facilities were completed, increasing quantities of lumber were
diverted to the crating and shipment of war materials abroad,
Due to the continued exceptionally heavy direct and indirect
requirements for lumber for war purposes, the War Production
Board issued an order which became effective on August ,I,
1944, greatly restricting the use of lumber for non-essential
purposes. Preference ratings will be given to home owners to
assist them in obtaining lumber only in extreme emergencY
cases, In general, damage caused to dwellings by fire, flood, tOrnado, earthquake, storm, 01' similar catastrophe is considered
justification for emergency ratings when the damage is of such
a nature as to make the dwelling unfit for continued occupancY'
LUMBER PRODUCTION-TEXAS, ELEVENTH DISTRICT AND UNITED STA'fES
(M illions of board feet)
~- Texas --~- Four Statcs' -~-U nited Sta1 09 -Month
1044
1913
1044
1043
1944
10 43
January ...... .... ...... .
72
1I5
161
230
2,480
2,2~~
February .............. ..
70
108
168
224
2,460
2'~67
March .. . ... ..... . ..... .

m

~g

~:~l. :::::::::::::::::::

fJ;.
is·t·.:: ::::: ::: :::::~:
September .............. .
Oeteber ..... ... ... . .. .. .
November .. ......... .. . .
December ..... ..... .... .
Total- first five month) .. .

354

Year

j~~

J 13
107
103
9S
93
101
08
80

62

June ......... , ......... .

106

585

842

Texa.
1,137
1,271
),330
1,384
1,274

1030 ......... .. ........ .
1940 .... ....... . .... , .. .
1041. ........ .. .. ...... .
1~2 .. ........ ... . .. . .. .
1943 ....... .... ...... .. .

m
244
237
242
226
205
210
214
183

1,185

N~~

~:020

2,010

3,06 '
3,1 10
3,141
3,233

3,040~

3,0
2,9 7°8
2,64

--

13,302

Four Stntcs2,399
2,580
2,719
2,88 1
2,711

13,463

United State.'
24,975
28,034
33,476
30,332
34,622

-ArizonR, Louisiana. New Mexico, and Toxus.
SOURCES: War Prod uction Board, Bureau of Census, and United States Ilorest Service,

CRUDE OIL PRODUCTION-(Darrela)
July 1944
Inorellso or deoreaso in dailY
nvernge produotion~
Total
Daily "vg
production
production
July 1013
JUliO1944
North TexllS ........ ... ,.....
7,476,050
241,163
+ 13.411
_
197
We.t Texa.... .. .. ... .. ......
14,304,050
464,324
+210,643
+17'84~f
EnstTexns" .... , .. .. . .. ....
15,877,450
512,176
+ 15 412
+ 6,
South Texas ... , ... . . . . "....
9,009,250
310,653
+ 90:853
+ 7,04~
Telns Coastal................
16,478,050
531,550
+120,450
~
Total Texas .. , . .. ' "
New Mexico .. ... ... .. .. . . ...
North Louisiana ...... .. . .....

64,134,850
3,356,000
2,235,200

2,068,866
108,258

~

+150,760

+ 12,880
6,489

-

'Fotnl Distriot...... ..
60,726,050
2,249,227
+453,369
SOURCE: Estimated from American Petroleum Institute weekly reporte.

+34,8~

2=

1,~16
___

+33,489

VALUE OF CONSTRUC'rION CONTRACTS AWARDED
(Thousnnds of dollars)
JUly
.Tuly
Jnne
,January 1 to JU~4:1
1044
J 048
1014
1914
1 48
Eleventh Distriot-total . .
0,004
14,4 12
10,080
81,716
250,4
48
Residential. ....... . ...
2,1 12
3,209
1,872
19,327
19
6~,'~
All o/,hor" ...... ......
6,8112
11,113
8,217
70,389
United Stntcs--totnl .....
190,589
183,66l
163,866
1,150,760
2,034,~~~
Residential. ....... . '"
25,813
71,836
30,622
220,705
1,~~~:971
All other"............
164,726
111,825
133,244
921,055
-37 states cast of the Rocky Mountain.
BOURCE: F . W. Dodge Corporation,
BUILDI NG PERMITS
poroontal'
Percontage ehauge
nne
valuation fro m
Jan 1 to July3 1, 1944 ha tion
va 1un 9j3
Valuation July 1043 Ju ne 1944
No . VIIIuntion from I 5
$ 10,090
- 6
- 84
lPO $ 255,0:10 tl~o
100,102
+167
- 50
515
987, 124 + 113
83,310
- 21
+330
725
385,088
78
34,758
- 44
- 43
033
474,308 -';'
177,223
- 87
- 53
805
1,156,058 +218
400,131
- 25
- 27
4,407
5,419,591 + 107
20t,608
+260
010
903,081
49
+ 15
225,874
1,611
- 50
2,000,314 - 10
+ 28
64,370
- 78
- 20
585
560,199 :;: 8
781,487
+ 11 5
1,747
- 65
5,604,730 +448
323,956
60S,4 11
3
+947
+220
036
3 1,846
427
+131
200,402 :;: 44
+ 75
344,307
6,113
2,320, 130 +255
+41
+ 7
268,558
+807
988
+269
665,473 +104
63,111
- 37
- 79
587
1,137,046 + 37
137,125 ___
17,973
217
+ 4
+ 6

°

July 1944
Abilene. " ..... ..
Amarillo . ..... . , .
Austin .. " . ,. , ...
Beaumont , , , , , ' "
Corr,us Christi . ...
Dalas .. .. .. , ....
EI Paso ......... .
Fort Worth .. , .. ,.
Galveston , , .... , .
HOllston .. " , .. , ..
Lubbock .........
Port Arthur .... , .
San Antonio .. ... ,
Shreveport . .. ... .
Waco . . .. , . . .. ".
Wichita Falls, , . , .

No,
22
82
145

145

158
040
07
218
57
278
202
113
858
133
55
29

-----

Total" ..•. 3,232

$3,llO6,62~

-16

-35

~J,486

$22,783,709

+ 13

6
MONTHLY BUSINESS REVIEW
season showed declines ranging from 3 per cent in the case of
During July, crude oil production in this district reached a
cake and meal to 13 per cent for hulls. Stocks of crude cottonnew peak for the third consecutive month, with a daily average
seed
oil, cake and meal and hulls on hand at mills on July 31
production of 2,249,227 barrels. This figure exceeded the June
average by about 2 per cent and surpassed that for July, 1943, were subs tantially higher than the exceptionally low supplies a
by about 25 per cent. The west Texas field continued to show year earlier, but stocks of cake and meal and hulls were lower
the largest increase, with a daily average production of 17,500 than on the corresponding date of other recent years. End-of?arrels ahove that during the previous month. All other produc- season stocks of cottonseed oil have been at a very low level
Ing areas in the district showed increases in production as com- since 1940 and current stocks are smaller than for most years
pared with June, with the exception of north Texas and north- prior to 1940. Increased shipments of linters during the 1943ern Louisiana fields, where decreases in daily average output 1944 season and reduced production brought about a decline of
occ.urred. Crude production outside this district~ however, re- 58 per cent in end-of-season stocks.
lllal11ed at about the same level as in June and mcreased only
WHOLESALE AND RETAIL TRADE STATISTICS
slightly as compared with July a year ago.
~----Percentage change in :
Stocks of above-ground crude oil declined slightly in the
Stooks *
Number
Net sales
of
July 1944 from
Jan 1 to
July 1944 from
Eleventh District during July and at the end of the month
July
June
ropor ting
July
June
July 31, 1944
trade:
firms
1943
1944
from 1943
1943
1944
t~taled 120,605,000 barrels, as compared with t he 1943-1944 Retail
Department stores:
49
+ll
- 9
+15
+ 3
+ 6
Total 11th Dist . .. .
111gh of 127,165,000 barrels on February 19 this year and the
7
+12
- 14
+22
+13
+ 9
Dallas .. . ....... ..
4
+ 9
- 10
+12
+15
+ 4
Fort Worth ....... .
1942-1 943 low of 92,678,000 barrels on January 10, 1942.
+14
- 6
+ 14
+ 5
+ 7
7
Houston ..... . .. · •.
5
+ 8
- 8
+ 9
-15
- t
~tocks of crude oil outside this district declined about 2 per cent
San Antonio .....•.
+14
- 7
+20
3
Shreveport
.
.
.....
.
111 July and at the end of the month totaled 104,507,000 barrels,
23
+11
- 5
+11
Other cities . . ..... .
as compared with 122,742,000 barrels a year earlier.
Retail furniture:
-1
- 15
-9
-2
66
Totnil i th Dist ... .
-29
+10
+1
6
+8
Drilling activity throughout the United States, as measured
Dallas ... . ...... ..
-36
-4
-13
+
15
3
}!il Pano .. . .... ····
-20
by well completions, has increased materially for the third con+5
-5
10
+1
Houston .......... .
-4
- 12
+2
4
+1
San Antonio ...... .
secutive month and during July averaged more than 500 wells
stores:·
1"3
pe.r v.: eek fo r the first time since early in 1942. In the E~eventh Independent
-7
+2
+3
Arlzonn. . .. .. .....
u
DIStnct, approximately 3,700 wells were completed durmg the
.~
New Me<ieo....... 38'6'
+
11
Oklahoma ..... . . . .
- 6
+11
first seven months of 1944, as compared with 2,400 ~o.r t~e
'fexas.. .. .. .. .. .. . 072
same period a year earlier. The expansion of drilling activity ~n Whelesale trade:·
-1
+34
Automotive supplies
6
+13
- 1
recent months has been brought about by an impr~vement 111
+22
+6
Drul!ll.............
6
- 1
+ 1
+i i
Eleotrical supplies. .
4
+ 3
- 7
+" . 7'
th.e supply of drilling rigs and equipment, the r.elaxlllg of cer+ii
26
- 6
- 11
Groeeries ... . .. , ., .
+18
tam Government restrictions, increased wildcattmg and the reIInrdwaro.........
8
+ 9
- 11
+ 5
Surgioal equipment.
4
+16
- 12
+26
~ently announced crude price subsidies for settled fields. DurTobacco & products
5
- 6
- 1
+ 7
- 18
+ 2
.Compiled by United States Bureau of Census (wholesale trade figures preliminary).
In 9 the first seven months of this year 1,002 wildcat wells were
*Stooks at cnd of month.
tChnuge less thau one·half of one per cent.
dnlled in the district but 78 per cent of these wells failed to produce oil in paying quantities.
INDEXES OF DEPARTMENT STORE SALES AN D STOCKS
July
May
Juno
July
Receipts of cottonseed at Texas cottonseed oil mills were ap1943
1944
1944
1944
proximately 11 per cent smaller during the 1943-1944 season Salcs(1035·1939 c 100):
228
160
203
202
th.an in the preceding season, but crushings of cottonseed deWithout
sellsonal
adjustment
220
228
245
277
With seasonal
adjustment
... ...
. .... ..
. ... ..
c1lned only about 9 per cent, In consequence, stocks 0 f cotton1
Stocks (1923-1925=100):
111
98
J09
115
seed at mills on July 31 this year were 30 per cent small~r oan
Without seasonal adjustment ....... .
121
97
11 6
126
a year earlier. The output of cottonseed products dunng the
With sensonal adjustment ... . . . .... .
THE FIFTH WAR LOAN DRIVE
..
'
L
D ··ve come tax payments and, therefore, they will eventually result in
n f 11 , a reduction of cash income tax revenues. Certificates of indebtAs 111 the case of the earher dnves, the Fifth War
1
~ro~ed to be outstandingly successful. The grand tota 0 9sa es edness 1 Y4 per cent notes, 2 per cent Treasury bonds, and 2 Yz
(url1~g the drive period aggregated $20,639,OO?'OOO'lor 2 p~r per c:nt Treasury bonds accounted for the remainder of the
~:nt ~l ex~ess of the $16,000,0?0,000 goal. ThiS tota wased~n - drive total. Sales of certificates of indebtedness were slightly less
d ~ntlally 111 excess of ~hat realIzed frOI~ any of the prec 0 ~ than during the Fourth Drive, but sales of 2 ~ per cent bonds
01'!ves, ~he largest prevIous amount l:a"1I1g.been $18,94 4 ,00 ,
totaled somewhat more than in the preceding drive. No 2 per
00 wInch was realized from the Third Dnve.
cent bonds or 1 Y4 per cent notes were offered during the Fourth
In .an effort to minimize the expansion of ban~ deposits~ no Drive. Sales of securit!es to brokers and dealers were comparaseCUrities were offered to commercial banks durmg the Fifth tively small, aggregatmg only $533,000,000, or about $100,D~ive, a policy which had been followed in the preceding twO 000,000 over the Fourth Drive volume.
dnves. The sale of Series E bonds to small investors aggregated
Sales of the various types of securities during the Third,
$3,036,000,000, or slightly over the assigned qu?ta .o~ $3,OOO'd Fourth and Fifth War Loan Drives are shown in the following
000,000. The sale of other types of securities to llldlviduais an
table:
Third Drive Fourth Drive Fifth Drive
partnerships totaled $ 3,315,0 00,000, or 11 per cent more than
(Millions of dollars)
To
non·bank
invostol'!l:
, 3,036
$ 3,187
the quota.
Series E savings bonds . ... .. ..... .... .. .. .
$ 2,.72
1,024
81 8
Sorie; F nnd 0 savings bonds. . . . .• . .. . . .. .
831
2,575
2,232
Sales of Series E, F, and G war savings bonds account~d for
Tax nnd savin ~s notes .... .. ......... . .. "
2,483
4,770
6,036
Certificates of tndcbtedness. . . . . . . . • . . . . . . .
q22
1,948
19 per cent of all sales during the drive, as compared ~Ith
1 ~ per oent notes. . . .. .. .. . . . .. .. .. .. . .. .
. ...
5,220
2 por cent bonds ....... . ............. , .. .
6,257
... .
per cent for the Fourth Drive and about 16 per cent durmg t e
21« por cont bonds ......... .... ... ··· .. ··
3,331
2}'j por cant bonds ............ , . .. .. .. .. .
3',779
I,P20
2',263
third Drive. However, sales of tax savings notes reac~ed a recTotol .......... ".. .. .. .. ... .. ..
$18,044
$16,730
$20,639
ord high of $2,575,000,000, or 12 per cent of the drive tot~l,
NOTE' Totols in tho above toblc do not include 1I00uritios sold ouwde tho drives to oorot?e great bulk of these notes going to corporations and assoc.la- mercial
b~ks and to Governmont agenoies and tr ust funds.
tlO ns. These notes will, of course, be used in making future m.

°i

r

6

MONTHLY BUSINESS REVIEW

Both Texas and the Eleventh Federal Reserve District as a
whole made an excellent showing in the Fifth War Loan Drive.
Aggregate sales in Texas, which amounted to $613,000,000
were 132 per cent of the State quota of $464,000,000 and approximately 3 per cent of the national aggregate. This latter
was about the same proportion of the national total as was
provided during the Fourth Drive. An especially fine record
was made in sales of Series E bonds. With a State quota of
$125,000,000, actual sales amounted to $13 8,000,000, or 11
per cent over the quota. Of the ten large states with Series
E quotas of $100,000,000 or more, this was easily the best record. In total sales of all securities to individuals and partnerships an even more impressive record was made, the State quota
of $236,000,000 being exceeded by 34 per cent.
The amounts of the various types of securities sold in Texas
during the Fifth War Loan Drive and the percentage distribution of the sales in Texas and in the nation are presented in the
following table.
TexllS

United States

TYJ>e of issues:
Series E savings bond......... . .............. .
Series F and G savings bonds .... . ...... ...... .
Tax .and saviu~s notes ....................... .
Certificates of lIldebtcdllcss .... . ...... . . . ..... .
17i per ceut notes .......... . ...... . ......... .
2 pcr cent bonds .. . ...... . .... .. ............ .
2}1 pcr cent bonds . ... ............... .

Alhount
SI38.326,000
30,340,000
01,733,000
112, 181,000
59,305,000
140,746,000
30,001,000

Pcr Cent
or Total
22.6
5.0
15 .0
IS.2
0.7
24.5
5.0

Totnl. ........... ...... . ....... ...... .

$612,624,000

100.0

Per Cent
or Total
14 .7
4.0
12 .5
23.1
0.4
25.3
11.0
100.0

The composition of the security sales during the drive in
Texas differed considerably from that of the nation. In general,
sales to individuals were proportionately heavier in Texas than
for the country as a whole, whereas sales to non-banking corporations were lighter. This, of course, is to be expected as the
larger corporations generally are located in the North and East.
Series E sales accounted for 22 .6 per cent of the Texas aggregate, but only 14.7 per cent of the national total. The relative
proportion of tax savings note sales was also higher in Texas than
for the nation, in both cases about 10 per cent of these sales go'
ing to individual accounts. On the other hand, the proportion of
2 per cent and 2 Yz per cent bond sales was substantially higher
for the nation than for the State.
Treasury security selling during June and July undoubtedlY
constituted the most gigantic financing operation in history. In
addition to the record-breaking total raised in the formal drive,
the Treasury also sold a very large volume of securities outside
the drive. Approximately $765,000,000 in long-term bonds
was sold to commercial banks with savings accounts. Another
$590,000,000 of bonds was placed in Government Treasurya c'
counts, and $1,800,000,000 of Treasury bills was sold to banks
and others over and above current maturities. The grand total
of Treasury financing for the two months, therefore, really
aggregated almost $23,800,000,000.

COTTON AND COTTON TEXTILES
Despite the fact that cotton is one of the most important cash cents, but a new 16-year high of 22.13 cents was reached in the
crops grown in the United States, the total acreage planted to 10 spot markets on July 11, 1944, reflecting the effects of the
cotton has shown a downward trend in recent years. Cotton provisions contained in the Stabilization Extension Act of 194~,
planting reached a peak of 45,968,000 acres in 1925, but the which became effective on June 30. The most important proVl '
average acreage for the 10-year period, 1933-1942, was only sions of this act, reported by the Department of Agriculture as
28,189,000 acres. In 1943, the total had declined to 21,942,000 pertinent to cotton, are: (1) that the loan rate on cotton nOW
acres and the estimate for 1944 was placed at 20,472,000 acres, and for at least two years after the war is raised to 92.5 per cent
which is about 7 per cent below the previous year and represents of parity; (2) that each major cotton textile item be separately
the smallest acreage planted to cotton in 49 years. Planting of considered in determining whether OPA ceiling prices ref1~ct
special types has also declined. The total acreage planted to parity; (3) that in the establishment of ceiling prices, the pfl ce
American-Egyptian cotton during 1944 is estimated at 14,000 of m~ddling 1's-inch cotton at the center of location shall be
acres, as compared with 141,700 acres last year, and the acreage construed by OPA as equivalent to parity as is done by the Cojl1'
planted to Sea Island cotton this year was negligible.
modity Credit Corporation for loan· purposes; and (4) that the
Cotton production in the United States reached a high of President shall take all lawful action to assure that the farm prO'
18,945,000 bales in 1937, brut the average for the 10-year period, ducer of all basic and proclamation commodities shall receive
1933-1942, was only 12,455,000 bales. The 1943 production not less than the minimum price at which ceilings could be
was 11,427,000 bales and the forecast for 1944, made by the established by OP A.
Department of Agriculture based on conditions prevailing on
Since mid-July price declines ha ve offset recent gains and are
August 1, is 11,022,000 bales, or about 12 per cent below the now at about the same levels as they were late in May. The facaverage production of the past ten years.
tors contributing to the recent price decline appear to be the
A record of 18,443,000 acres was planted to cotton in Texas current favorable war news, the continued good progress of the
during 1925. However, for the 10-year period, 1933-1942, the cotton crop, and a further reduction in mill activity.
average acreage had declined to 10,558,000 acres. The acreage
The present outlook in the cotton textile industry, generally,
planted in 1944, as reported by the Department of Agriculture,
is one of continued labor shortages, further complicated by
totaled 7,325,000 acres, or 7 per cent below the 7,915,000 acres
worn machinery and inadequate carding equipment. Eve
planted in 1943, and represents the lowest cotton acreage for the
though the industry has expanded output, employment a~
State in 44 years.
.
wage payments since 1940, very little has been undertaken 11'1
A Texas cotton crop of 2,450,000 bales is forecast as of expanding or replacing equipment. The industry entered the
August 1 this year by the Department of Agriculture, which
war period with sufficient capacity to meet both Governm~l'It
compares with 2,823,000 bales produced last year, and the average production of 3,273,000 bales for the 10-year period, 1933- and civilian requirements, for a short time, but since reachl~f
1942. The yield was forecast at 165 pounds per acre, as com- a production peak in September, 1942, the total output of mIl s
pared with 174 pounds last year and the 10-year average of 162 has declined. Despite the continued efforts of several Gov~rll'
pounds. The 1944 cotton crop for the Eleventh Federal Reserve ment agencies to bring about an increase in textile productJO~'
District is estimated at 3,117,000 bales as compared with the the consumption of cotton in July declined to 724,000 bales, •t eSe
lowest since September, 1940. As the Government requ lr
1943 production of 3,578,000 bales.
Average prices for middling 15/16-inch cotton have fluctu- about 40 per cent of the total cotton textile output for the ",~r
ated greatly since the yearly average peak of 35.4 cents was effort, acute shortages of many textile items are now being fe t
reached in 1920. By 1932, the average price had declined to 5.7 by civilian consumers. To partially relieve tIus situation, the

d

7
MONTHLY BUSINESS REVIEW
sun.ption, were sufficient to cover requirements for less than
\Val' Production Board issued an order on July 27, designed to
three months. Stocks in public storage and at compresses totaled
channel approximately 50,000,000 yards of cotton fabrics each
8,246,000 bales on July 31, as compared with 7,677,000 on the
l:lend~r qU,arter into the p:rod':1c~i,on of m?derately-priced and
same
date last year.
t-Pflced Items for essentIal CIVIlIan cloth1l1g. The cotton texThe
expansion of the cotton textile industry in Texas has
~l e, yardage to be set aside in accordance with this order will be
ehvered to apparel manufacturers and made up into garments been relatively small during the past 20 years, even though
to ,be sold during the coming fall and winter seasons, However, Texas is the leading cotton producing state. The average numt~lS new order will give civilian consumers an additional supply ber of spindles in place at the cotton mills of Texas from Octoo goods equivalent to only about 2 per cent of the total annual ber 31, 1924 to June 30, 1944, increased by only 26,870, and
the increase in active spindles for the same period has been only
OUtput of 10,000,000,000 yards,
41,650. The Bureau of the Census reported that 239,136 cotton
,The Bureau of the Census reported that 23,281,000 cotton spindles were in place in Texas mills on June 30, 1944, and that
SPIndles were in place in the United States on June 30,1944, and 233,988 were active during the month, showing an aggregate of
OUt of this number, 22,373,000 were in operation during the 85,799,000 spindle hours with an average of 360 hours per
nlonth, as compared with 22,412,000 for the preceding month
spindle.
and 22,769,000 for June, 1943. The aggregate number of
The trend of cotton consumption in Texas mills has varied
spindle hours reported for the month was 9,712,000,000, as
considerably over a period of years. The average monthly con~olllpared with 10,060,000,000 during May and 10,714,000,000
sumption for the 10-year period, 1921-1930, was about 8,900
In. June, 1943. Based on an activity of 80 hours per week,
bales, hut during the period 1931-1935 the average declined to
~flUdle activity du~ing June, 1944, was 118.5 per cent of, capac- 6,175 bales. The monthly average for the period 1936-1940 was
as compared WIth 119.0 per cent in May and 130.0 111 June approximately 10,000 bales, but increased sharply during 1940o last year. Spindle activity for the season ended July 31, 1944, 1941 to 20,140 bales and reached a peak of 22,280 bales during
averaged about 122 per cent of capacity as compared with 133
the 1942-1943 season. However, the monthly average for the
}er cent in the 1942-1943 season and the peak of 139 attained in
present season has declined to 17,300 bales.
anuary, 1943. Cotton consumption during the 1943-1944 seaAverage mill margins which reached a low of 8.92 cents per
son totaled 9,942,000 bales, as compared with 11,100,000 in the
pre~eding season and the record high of 11,170,000 bales in the pound in 1932 averaged 12.7 6 c~nts per pound during the eight~eflod 1941-1942. The 10-year, 1931-1940, average was about year period, 1932-1940. Followmg marked expansion in activity, average mill margins increased sharply to 19.35 in 1941 and
,648,000 bales.
reached a high of 21.14 in 1942. In 1943, the average margin
Stocks of all kinds of cotton in consuming establishments declined to 20.19 cents and to 19.97 cents during the first five
to~aled 1,873,000 bales on July 31, as compared with 2,115,000
months of 1944.
a es on the same date last year and, at the present rate of con-

I

MONTHLY BUSINESS REVIEW
SEPTEMBER 1, 1944

NATIONAL SUMMARY OF BUSINESS CONDITIONS
(Compiled by tbe Board of Governors of the Federal Reserve System)

... -

......,

INDUSTRIAL PRoDuonON
.1I1tI ..... _ . _ .."''''

toO

ZOO

/'

2""
220

240

"'

/

uo

/
1/

200
180

200

Ie.

/

160

160

I

140

120

\

100

eo
1937

v

)

140

/

120
100

/

eo

193e

1939

1940

1941

1942

1943

1944

1. Federal Reserve index. Monthly figures, latest
shown is for July, 1944.

.

OOST Of' UVIIIO
,,~

"

.*-

1ft

180

" 011.'
I

,---

170
160

so

170
I 60
I

,t.,.;;:::::,

140

r

'000).1

130

~'

1"-

---....
'~--+
90

110

40

I30

~,
="~
I

120

AU.n ...

20

110

100

......<J/ ' '"--'
I

r'-r

IIIMT

100
90

- '------ eo

eo
1937

1938

1939

1'940

1941

1942

1'943

1944

6. Bureau of Labor StatistIcs' Indexes. Last
month in each calendar quarter through September,
1940, monthly thereafter. Mid-month figures. latest
shown nrc for July. 1944.
MEMBER BANKS IN LEADING CITIES
'IUAMI"OOI,~W

80

30r---1------r---

Y-I._-., '0

20r---~~~~~----_r--~_r----_+----~.0

' 10

ISS

1940

1~1

1942

1M3

1944

8. Demand deposIts (adjusted) eXclude U. S.
Government and Interbank deposits and collection
items. Governm~nt securities include direct and
guaranteed issues. Wedneeday figures. latest shown
are for August 16. 1944.
MEMBER BANK RESERVES AND RELATED ITEMS
""'_ ... MU.....

z.'

to I-----\-

;1,- - - --,20

15 ~'----r--

f+------1

10

-----.. -!'~~.......,...

t~-=~~~~~~I~~~~~~T~~~~T~~~~~=-~ 0
1938

J!HO

IMI

1142

tH3

Industrial production and employment declined slightly further in July. Wholesale commoditY
prices generally continued to show little change, while the cost of living increased somewhat.

1M4

9. Wednesday figures. latest shown are for August 16. 1944.

INDUSTRIAL PRODUCTION
Output at factories and mines continued to decline slightly in July and the Board's seasonallY
adjusted index was 233 per cent of the 1935-39 average as compared with 235 in June. The decrease
in industrial production largely reflected small declines in a number of industr ies due to continued
minor readjustments in the munitions program and to manpower shortages.
Output of steel and of nonferrous metals declined further in July to levels respectively 8 pel
cent and 20 per cent below the high levels of last autumn. A small decrease in activity in tranSpor.
cation equipment industries reflected partly the indirect effects of manpower shortages .n foundrie!
and continued readjustments in the shipbuilding and aircraft industries. In August a cutback io
aircraft production was announced which was expected to result in the immediate release of 20,00 0
aircraft workers and the gradual release of 100,000 more du ring thc balancc of this year.
Production of manufactured da.iry prod ucts and mCHS, after allowance for seasonal change,
was maintained in July while outpu~ of other food products declined slightl y. Cotton consumption
showed little change from the rate of the last two months. Activity in the rubber products industrY
continued to decline slightly in July and su;plics of heav y truck and bus tires available for civilianS
during the third quarter were substantially below estimated needs. Output of chemicals likewi¢
continued to decline slightly.
Crude petroleum output and metal mining were maintained in large volume during July. coal
production dropped 5 per cent from the level of the preceding month, but for the year thrOUgh
August 12 was approximately 8 per cent above the corresponding period of last year, reflecting un'
interrupted operations, longer working hours, and a great expansion of strip mining.
So far this year the value of construction contracts award ed, as reported by the F. W. podge
Corporation for 37 states, has fluctuated around 160 mi llion dollars a month--the lowest level since
early 1935.
DISTRIBUTION
' Department store salcs declined considerably less than is usual in .July, and have continued in
August at a higher level than a year ago.
• Freight carloadings continued to rise in July and were maintained at a high level during the
first two weeks in August. There were considerable increases in shipments of grain, forcst produCts,
and misccllaneous freight, offset partly by a slTlall decrease in coal shipments.
AGRICULTURE
Dry weather during July in the cast central area has reduced somewhat national prospectS fot
corn, hay, and potatoes. Aggregate crop production, however, is likel y to exceed last year by 5 per
cent, reflecting chiefly a record wheat crop 35 per cent larger than last year.
Total production of all feed grains is estimated at 112 million tons compared with 115 rni!li~~
tons produced in 1943. While hay production, except in the drought areas, has been large, it wll
provide a smaller supply per animal unit th an has been available in any of the last 6 yearS.
Crop prospects for most fruits and vegetables, except potatoes, arc better than last year. TobacCO
production is indicated as being abovc average and cotton yields may be good as dry weather haS
held the boll weevil in check.
BANK CREDIT
In the fivc weeks following the close of the Fifth War Loan Drive, loans by banks for purchasing
and carrying U. S. Government securities declined sharply; calls on war loan deposits and subsc<tuent
Treasury expenditures increased adjusted demand deposits and consequently required reserves; the
rapid outflow of currency into circulation was renewed; and exce5S reservcs declined.
In the five weeks from July 12 through August 16 loans to brokers and dealers for purchasing
Ps
and carrying Government securities declined 500 million dollars to about the pre-drive level. Loa
to others for purchasing and carrying Goverrunent securities declined about thc same amount, but
are still considerably larger than before the drive. Commercial loans continued to show little chapge.
Treasury war-loan balances at all depositories declined in the five-week period by 2.7 bill~~
dollars. At weekly reporting banks, Government deposits fell by 2.2 billion during the same perl se
and adjuste4 dem:lrtd deposits increased by 1.4 billion s. Time deposits continued the stMdy inc rea
that has been in progress for more than a year.
J
. rapiD
Followi~g a slackened rate of outflow during the war Joan drive. currency renewed Its • he
outflow and in the next few weeks increased at a rate of about 500 million dollars a month. f
ha seS
resulting drain on bank reserves and the increase in required reserves were met in pare by pure
of Government securities by the Reserve Banks and in part by a decline in excess reserves.
I
Weekly average excess reserves of all member banks declined about 300 million dollars
their peak during the war loan drive and amounted close to 1.1 billion dollars in mid_August.
rate of decline was about the same at reserve city and at country banks.

f:;e