TEXAS BUStNESS EEVIEW 
BUHEAU OF· BUSINESS RESEARCH THE UlHVERE: I'.rY Of TEXAS '. AUSTIN, TEXAS 
Vol. 1 September 24, 1927 
No. 6 
Business conditions throughout Texaq and the Southwest during August 
were rather s1)otty• Some industries were Vf?ry active arid they estimate condi­
tions ·as 'being the, best in sever:d years-. On :the other hand, many reports .show 'industry .to· be ltslow but hopeful." 'rhe slovmess is due to declining pro­. ducticxo over the past'fe1J1 months; •J.nd the ho.2efulness is based on the expan­sion o.f fall trade. The nonth we.s ,almost in .even· balance between production · activity and consumption forces. Lo;·\'Cl" money rQtes , and the abundance of cre­
dit facilities are· bound to stimulate industry a:n,d to prevent any drastic set­
back to business in the immediate fu:tu.re. · · · 
Possibly the outstanding development in August was the improvement 
in cornmodity prices . . This was. especially true ·for agricultural products. Cot­
ton prices 1:idvanced ·almost daily -!a.nd December fut,ures' sold above · 23-l/2)t' a 
pOllnd at the end of the month. · PP.ices ,of cattle;; 6;gs, and sheep iffid wool were 
upward insuring greH.ter returns to produce.rs _tl)i's.,;{ear than in 19 26; Grain 
prices were downward, but the loss to farmers from .this source will riot be very 
extensive becuuse the bulk of tho crops has already been sold; moreover, these 
crops are relatively unimportant · in this-~fr~te. 
Weather conditions were general l:f' fuvorable for the maturing of 
crops' although some s:ec·tions were rather. dry"and anprelrension was expressed re­
garding fall pasturage for ce.ttle a;.d i5heep. Re,c~rit rains, however, · have re­
lieved this s ituati0n .to a large extent so: thi:.t 'ample fall and v1inter feed 
seems a:rnured. Harvesting of cotton. is makfng .r!.IJiid pi:-ogress and c'onsiderable 
land is ready for the planth:ig of fall wheect.: · Vvuges for harvesting ·are about 
on the same leve1 as those prevailing n yeG.r .~gp, and. ' there has been no labor 
shortage of consequence reported. . ' . ·. . . 
Livestock deter.iorai;ed from 3 .:to 5 ,poiI)ts over.the month • . Moreover, 
the condition of both cattliq and sheep ranges. q.eclined sharply due to pro­
longed drouth, especially in the ':re stern and southwestern· parts of the State. 
In .add ition to recent storms, several more ·general rains [,re ·needed tb improve 
late pastures Wld t o start.the fall whe9.t, ~s~n9e this crop· is very important 
as winter pusturc for livestock. Ht:avy runs . of cattle and calves ho.ve been 
the rule at the st~;·1~;;-rcE»; ''blit-i'ec·cipts ..of· hog.s:: and.sheep have. l:Jeen compu.ra­
tively light. ·· 
The building industry seems to have reversed the downward trend of 
the summer, and a0t:t\rity in 1;11n.t industry was .c ms iderably above expectations. 
Allowing for seasonal influences, building 'permits increased more than a third 
over the July figure, and contra?ts awarded assute activitJ' in the industry 
for some time to come. Lum.ber mills increased their production, and the out­
turn of cement reached a new: hig~ record. Daily·: D.vcra:~e flow of crude petro­
leum f6l1 slightly. under the. ·July output and drilling of new well<j dropped 
sharply. 
Shipments ·-of frui.tS. a.nd.. Y~E;etable~· dW1Iidled as the nonth ndvanced. 
Total carlots \'!ere but 783 cars; vHte~~eian·;,-·a-n-cr· pe-;frd'· uccount-f-or the bulk 

TEXAS BUSINESS REVIEW 
of the loadings. Prices for most fruits and :vegetables were downward. 
Cotton mills were very active; the final outturn of goods was more than one-fifth above the July output. Spinners margin declined further and is now but 4 points above normal. The ratio is still in favor of the spinner, thereby sustaining demand for raw cotton. 
~lholesale and retail trade, although in fairly large-volume fell off seasonally and .was below that of July. Retail trade in the Dallas Federal Reserve District was smaller by 7.5% in August tho.n in the same month la.st year. A decrease in August trade is to be expected; the decline is somewhat above normal, however. Sales have been slow, but there is a feeling of hope­fulness for better business in .the trade. 
Interest rates are low. There is an abundance of funds and credit available for expansion purposes and for movement of crops. The rediscount rate was reduced from 4 to 3-1/2,to on August 12. The 4% rate had been in opera­tion. since July of 1924. · Bank debits were below the July figure but c.bovc 
· August of 1926, giving further proof that·business is . passing through a dull period·. Reserve Bank loans ·· to memher bunks reflecte9. an i~crease over July but were nearly 50% under tho.se of Augµ st a ye·o.r ago. Bot,h ·.demand and time deposits were above the July totr~lsr. · Comlner'cial failures;~ .increas~d in hwnber,
1
but the liabilities were 'below tho~e of July• ·New .enterprises receiving' 
charters in August fell "o'f'f sharpiy• . · · · · 

The business situation in August display.ed o.. sidestepping tendency. Many of the commonly used bus.ine~;;s barpmeters indicate that. business is mov­ing forward at a normal rat:e and so far as can· be seen now. no drastic decline is in the offing. At the same time, there are some unfavorable influences which if developed mny bring o.bout ,sqme curtailment .over the he:xt few months. 
·-· . ' 
· Financia;L .and Ba.:bking · 
Th~ ·vqlµme Of ·busine.9s in the 11th Federal Reserve District as mea­sured by the runofuit :of· checks cashed in August r.eilects a decline ·of 6% from July but nn increase .of· lfo over August of 'l926. For the five .weeks ending September 3, debits to individual accounts·· in seventeen principal cities re­porting to the Federal Reserve System amounted to $818~767,000, compared to $869, 000, 000 in July and $810, 399, 000 in August of 1926. · 
Investmentsby member bnnks in Govertlment securities were reduced $2, 000,000, but total loans and di~ counts were increased $5,340,000 in the five week period. Deposits trended upwatd ·during the month~ Demand deposits increased $5, ?66,o·oo, -and time deposits went up $1,626,000. Reserve Bank loans to member banks increased sqa:r;ply over the July total but were nearly 50% be­low those of August bf 1926 . . 
The rediscount rate was lowered on-Augus~ 12 to . 3-_l/2%, following a 
· :t\ugus~ Changes with Co_mparisons* 
·' August, 1927 · · July, 1927 August, 1926 .Jlank De'Q~t·~ . ( f1 'Cities-)· $8lf3 ...767. 000 ' $86f); 000, ooo $810,399,000 Gov er nme.n'.C. Sectrr i'ties .· . owneQ. ·' . . . · · . . . . 61, ooo,ooo 63 ,'ooo, ooo 
Member Bank Borr·owirng·s 14,077 ;oDo ·8.,..7:37, 000. 25,261,000 Demand Pep9sits 273,266',0-00 268, 000,000. Tim~ Depoif~s· · . 110,626,000 109 ,000,bOO 
. " · " . · . *From ·the. Fecier al Reserv·e System 
TEXAS BUSINESS REVIEW 
raducti.Olll in s~veral other Districts. a. few days earlier. This i.s the first 
change of 'the redisco'unt rate in the Dallo.s District since July of 1924 when 
the rate was reduced from 4-1/2% to IJ:.~~ . A rate· of 3-1/2% is r ather unusual 
in this District. 

Coin.':lerc ial f'ai lures· 
-·-~~ ·~ -: 
The number of insolvencies was greuter by 7 than the failures in July. However, liabilities were consiqcralHy reduced, indicating that competition for business is very keen and that the smaller companies are being forced out of 
. business . During the month, 45 comp11nies with . liabilities of $481,000 went into bankruptcy, as compared tci 38 f ailures ·with liabilities of $734,000 in July. There wa's only one cor.ipan:; hi:i.ving li~bilities over $35, 006; ull the others were under .$30,,000. · 
--·-·.~.:____:._---·---'---' ---
Commer cia:l. Failures.* .. . .·. 
-f 
August, 192.7 JU..ly, 1927 I Nmnber. . 45, 38 / Liabilities 481,000 ..., .734,000 I 
Assets 262,000 : . ... .485,000 
*From R. G. D_u_n-a_n_d_ ~~mp~~~· :\' ___ 
J 
Stock Prices 
That industrial condition.s ·in the Southwest are favorable is indi­
cated by industrial stock price~ . . T.he upward r:10vcment which began last 
January was in evidence ag.ain lust ·month ·rernlting in stock prices breflking 
through to new high recordEalmost.e.ve;ry duy, F'rivn·ci·s Of higher prices have 
been favored with many bullish 1 factors___ so f u.r this yeur, .and stocks hav8 
responded favorably to cnch new r~port~ ~ :Th~ ~8&i .eieG~nt hash~~ difficulty 
in locating unfavor '.l.bl e news end nhen a b0arish report does com e out, it 
seems to have little influence on the; merk8t. Th6 po.st two months, howe:ver, 
have witnessed an elom(;nt of cauti on in the mark0t _rpiuititj.g in u much re­
tarded upward mover:wnt. Some trader s cau alruU:'i~; see' :lnfiilhon in sto.ck 
prices and have Sounded the vmrn:i.n[~ of a breDk• ih 'the 'murkct in the not dis­
tant futi,irc. On the otht;r hund, rnany oper,J.tors can de:te1~t· no d c:::ent of in­
flation and look for much hir::her prices. · · 
The Bureau's index·:rtU.""tber of &even· industrial;-~ .l i..stsd o.n .the New 
York Stock Lxchange advanced another point during; the month, bringing the fi­
gure to 150. The increase from June.: to July wa~ 3 points and in each of the 
previous six months 5 points each month. 
In constructing this index, the Univer;s ity of T~xas Bureau of Bu:;i­
ness Research aimed to sele~t compi:i.ni.es whicp. 9.r e re_l) r·e s<;ntE~tive of industi·ie.l 
conditions in Texas a.nd other South9rn Ste-to$ n.nd /J.t the.. $Wile time listec. en · the New York Stock Exc}lap.ge where quot,8tions ar.~ availa?le: .for. a nu.'":ib.cr of 

4 TEXAS BUSINESS REVIEW 
years back. Included in the index are tV1'C sulpl1:urs, on~ stee1, one s\::>ft­drink company; one chemical, , and tvfo oils. ;The weekly .hig!l of each stock was averaged for the month, and the avernge' of a;ll seven st.ocks .for;-the years 1923-24-25 is the base equal to 100. The following are . ti1e . companies included in the list as they are listed on the New York Stock Exchange! Coca Cola, Freeport-Texas, Guli' States St>e~1. Tennessee Copper and Chemical, Texas Com­pany, Texas Pacific Coal and Oil; -and .Te:iw.s ""Gulf Sulphur. 
Te~as Charters 
There was a sharp .·reductiori: in the number of ne~·e~terprises receiv­ing ·charters to do ·business vlitr;in .the State. The downward ·. tendency during 
) 'the '·surmner months is normai, but the decline this year is..much greater than usual. There were 109 companies which received charters' in August wit~ a ca­pitalization cf $36,059,000, compared to 195 enterprises in July with a capi­talization of.$58,3l4;000. ··· Twenty..three .foreig:ri permits-were granted, or 7 less than in July. There ·were but 6 oil coii1.panii:::s, l public service corpora­tion, and 18 manufacturing firms chartered in August as against 13 oil com­panies, 6 public se:rvice corporations and 24 manufacturing firms in July. Banking and: real es_tate firms ~lso recorded a large decrease. Twenty:-nine companies increased their ca.pitali.zation by $1, 319, 000, and permits were issued t() 23'outside companies to opera.te within the State. Fewer oil companies organized over the past.i fey; months resulted from the un­favorable situation in· 'the· petroleu:m indus-try. 
..--------------· -----------··-·---·---­
Texas Charter.s 
August, 1927 Jul y, 192:7 August, 1926. 
Number of charters 109 195 175 
Capita.ii za:tion $36,d59,000 $58,3'14,QOO $$9,920,000 
Classification of new corporations.. :. . " 
Oil 6 13 31 Public Service 1 6 2 Manufacturing · 18 24 10 Banking and Fina.nee 9 16 ·7 R'eal Estate and Building 8 17 4 General 67 ll9 145 
Foreign Permits . 23 30 45 

':Building 
. '.' 
After a downward tendency during i;;he 'E'.ar.:ly. surmnei months, building permits increased. sharply durinr; August a.pd reached the highest total since last March. Perini.ts from 27 cities reporting t,o the University of· Texas Bureau of Busine9s Research went up from $8,~32,320 in July to $11,390,3f0 in August, or a.n inc.reuse of 36%. Apprehension has been felt for several months regarding the ov:erbuUt sit.1.i.ai;.ion in many of t ·he ·;larger cities and it was be­lieved that the time was ready for curtailirient·. ·· The August report seems to have dispelled this fear, and the industry i.s moying forward in larger volume. Whether the increase .is beyond the.nonnal :requirements remains to be seen. 
The larger cities·again account.foi:: .most of the increase, although many of the medium sized cities record increases. Houston is fa.r in the lead with a total of $3,649,000, followed by-Sah ,Antonio, Fort Worth, and Dallas 
. . , •·, . ""· .•· " I 
TEXAS BUSINESS REVIEW 
in the order listed. Losses were reported in several towns in the northwest 
sections of the State. 
Construction costs were slightly lower in August than in July, ac­cording to the monthly report of the S. W. Straus and Company. Prices of lum­ber and brick were lower, but structural steel increased almost enough to off­set the loss. Labor costs were approximately the same. Based on 1913 as equal to 100, the building materia l index fdl from 162.4 in July to 160.8 in August. A year a.go in August~ ·the ind.ex was .J 71. 8. Compared to the general 
.. w:hofe.sale price. . bf_ , ~l~--COrnplPd_ities, building materials are still relatively ..h~g~, as ·shoW!l. by: the)ureau "of Labor Stntistics figures given above. 
. ~ . . •. . . . . .. .·,. ~ .•' ·; :.: . ! ,;· ...:.f ; • • 	: : • . . • • • • • ·' : .' • ~ • .. : • 
<l: .i · ~ . 	----·----·
·-·--~·-----~--...,......­
1 
1
Building Permi£~: :. .>. . 	. ,
'·· . August, 1927 ·1·-July , 19 27 1I ~. , No . · · Amount No~ . Amount · · . j 
60 $293,385 .· 61: $.1:~5., 008 .. • 
I 
~
.--.i·. -. t;·;~~~o . ....... .. 
517,150 -. ~8 797, 4b6 .. 
Austin 82 245,793 6i 154,594 ···· 1', .-.Beaumont 224 610,2~1 125 152,488IB:towrisville 42 87, doo 13 110, ooo
. -43 :,
Brownwood 	144,400 93, 600 

Cisco 	11 25, 000* 
~: J ( 
Corpus Christi 67 250, 13"5-.' 25 11_8·' 98(5, 
Corsicana 16 32~665 8 8~ •. 925 
Dallas 334 770, 975 .·,4~8 673, 837 
Del Rio 19 72, :395 ·21 .1.2 .. 7"20 
El Pa.so ., 70 301,021 60 7'6' 344 
Fort Worth 357 1,161,610 277 908 , 883 
Galveston 224 172,376 214 115, 469 
HoU&ton 501 3,649,190 475 2, 473·, 063 

I
·:i.. 	Laredo · 21 __ ,_ 35,000 16. 49,000 Lubbock · 27 98,054 28 118' 270 ! 
,, 
.. Marshal~ 22 12, 580 . 75 40,080 I ... JlcAllen 70,120 156,050 
I ! 
Paris 	10,440 19,675 
Port Arthur 152" 312,636. 114 127,158
i 
Ranger_· 	4 7,120 · 6. 40, 570 
.1 
Sen Angelo · · 120-267,545 211, 430 San Antonio"" · ·· 358 1, 236 ,.548 320 933,436 ..... 23, 967 
Sherman 	89' 117 2CY 
Waco 46 579, 327 31 126,465 
.. I Tyler 25,987 43 54,630 
Wich-it.a .. Fal 1s 67 337' 580· 187,267 

':,·· Tota.),. $11,390,370 $$.332,320 ·:*Not incl uded in total. 
Lumber 
. . .. There was renewed activityin t he lumber industry during August due partly to seasonal influences but more particularly to more bui ld ing and con­struction work over the month. Decreasing building cost s i s 8.nother important factor contribut.in,,g .~o the better demand for lumber. Despite an ·8% decrease in construction cont~act_s from Augu-st las.t . Y~?.!, awards last month were 3% 
' ·• • .. . .. . 
above those of July, a.ccordinr.; to tho F. W. Dodge Corporation. 
Product.ion il;l :-$2 pipls in 'l'exas reporting to the :southern Pine As­sociation for the five weeks ending Septeinber · 2 was 71,6761 000 feet, an in­crease of almost. 3,000,000 feet from th.~. previous montn. ·· Shipnents went up from 61,123,000 feet in July to 70_,°7.63,000 feet' in August, en . increase of 16%, 
· Stocks o:ri" hand were reduced to 212, 280, 000 feet at the · end-of the month, com­pared' to 215; 98~, 000. .fe~:t. a mon:t.~-i eftl"1ier. 
:· \
The Lillnb'er Situation* ,_ 
In ·thousa.nds .of f~~t , ·· :· ·>!.. -1927 · d"uly, 1927
Au~ust,­~ ·  
Freii~tna.ry report of  
10.5 Miils  in the So'\,lthwest  ·  
Average production per mill ,Average shipments pei' mill  2,977 2,994  2,889 2,7g6  
Average unfilled orders  per mill  2,169  2,097  
Ahgust  July  ..  August  
1927 .  1927 .  1~26  
Finai ~epofts of 32  
·Texll.s  Mills ·  
Average .production·per mill  2,2;39 ·  2,080  2,.236  
Average shipments per mill  2, 211  1,850  2,,331  
.. Average ·stocks . · pet:mill  on · ·  hand · ·  6,633  6,545  5,107  

. NOTE: Beginning this. month, iumber statip~ics will be given in "Averages" per mill.. · ,.. · · *F'rom the .Southern ·Pine Association : 
Cement 
· -.; 
. Production of portland cement in T8xus millt; rn.fl,de a new high record in August. During the r..on,th, .a total of 496, 000 barrels were produced, com­pared to 458,000 barrels in ·Juiy and 440,000 b'o.rre1s i:n August la.st year. A similar situation is noted· fo.r ,the entire country and i .s due largely ta the in· creased activity in: the building p..nd' constructiorL industries. The increasedin output from July to August amount's to 8%; last year there was a decrease of 4.6% in ·the same period, a.n.d ~n 1925_.the increase was 6%. 
· , Shipments were e:<ceptionally heavy. A tott;1..l-_·of 561, 000 barrels wtre loaded, .Jf3E.iV~J:'l.g but 251,000 "bar.rels on hand at the end of the month. This -.,om· pares i,vith sh~pments of 412;000 o?"rrels in July a.nd st6cks on hand of 316,000 barrels. 
Cement Statisti·;~* ·· . .. ·-. ...'....... ........ 

In· tho~sands of barrels 
•••• •• ff -••• 
August , 1927 July, 1927 August, 1927 Pr;oductiori ."496 458 . 440 shipments .. : -:: ·· .:· i 561 491:
' 47~ 
418 ;
Stocks 251· .··. 
316 *F~om·: t~e· U'~'S: : Depa:ttinent .of. Comrner.ce._, , /, ·.,
' ...
.:: 
.~~ . .• 1..1 • • : 't . .; .. 
7
Petroleum 
Production of crude petroleum in August was age.in ne&r record rate. 
Unfavorable market reactions seem to have little or no effect on output. 
Leaders in some fields have tried several times to reach an agreement on .daily production~ but so ' far no appreciable curtailment is in evidence, and 
output from new wells has offset the loss in old fields. 
Field activity is .slowly yielding to lower prices of crude. During 
the month, a total of 474 wells were completed, against 610 in July. Of the 
474 completions, 247 were successful, again~t 330 producers in July. Curtail­
ment of field activity is general over the entire country and presents one of 
the first favorable developments since overproduction depressed the industry. 
A total of 20,847,000 barrels were gathered in Texas and Louiciana 
in August, a decrease of only 142,000 b~rrels from the July output. The daily 
average flow was reduced only 5,000 barrels in August, and that figure may be 
revised upward scmewhat by the final report of the American Petroleum Insti­
tute. August production a year ago amounted to 17,550,000 barrels. 
Prices of crude· were cut on August 24 in four important producing 
counties of the State. A flat rate of 60¢ n.barrels was offered for Oil 
gathered in these counties . and marks the first drastic reduction since March 
14 when"price~ were cut to 92¢ a barrel. H?ductions were posted in other 
fields soon after this cut ·and most producet~' of the State are now receiving 
lower prices. Gasoline prices recorded few changes during the month, and tank 
wagon prices are reported at 6,it o 7f. a gallon in some districts. Retail 
prices at filling stations viry from 16¢ to 19,¢' per gallon for the better 
grades. ·· · 
Estimated stocks of crude in the three states of Texas, Louisiana, 
and Arkansas fell off slightly from 101;000, 000 barrels in July to 
100,000,000 in August. Considerable new stor&ge space is being added in these 
states which should give some relief to the situation. 
The Petroleum Situation'\'.' · ,., ,; ln thousands of .barrels 
· :August, 1927. July, 1927·-· August, 1927 Producticm , 20,,'847 ·~O, ~89 .. , 17, 550. Daily Aver age Production 672 .677 ·575 610" , 
Wells completed 474 Producers 247 330 '*From the QI~ .WEEKLY 
• ' ---~ n¥_______, _ •·-----~; , ..;.._ . __________. 
Cotton Consumnd . 
Textile mills in the Stci.te were vc;ry_ active and increased their manufacturing schedule considerably above tl1e July rate. Regardless of the fact that July and August are the usual vacri,t] on months in th0 textile industry, mills showed only a slight curb"ilment. The increase i"1 August is more than usual, as many companies plan .on the increai3e •coming in the fall months. More night shifts and longer hours per spindle are reported in several mills. All of the 17 mills reporting to the university of' Texas Bureau of Business Re 
search show increased a.ctivity in operation~ except three, and their output was nearly equal to that of July. The, 17 mllls have 155, 000 spindles in ple.ce, practically au of which were operated during the month. 
A total of 9, 504 bales of c·otton were used in August by the 17 mills reporting, compared to 8,254 brles in July and 9,344 bales ·in June. The cloth produc.ed a..11ounted to 7",: 890, 000 yards ar;ainst 6, 887, 000 yards in July. Cotton .. goods sdes were more; than doubled. and. µnf,illed orders increased by 500~000: ,: yards. Although· thete ii>_ no cause for alarll"., ·it is noted that unfilled.· orders. increased by a· very much''slovierr::rate thE?-n; in previous months. At the present rate of production, ur..filled orders are less 1'.han two months 1 run, ~Jhereas in. previous months they v:ere equar to about 75 d,~ys' output;. The 17 mills are about 77% of the industry i~~ the ·Sb::te. 
· Se~enteen Mills  .A,ugust ,  1927  July, ·19 27  ·  .  
Bales of cotton  u sed  •' 9 , 504.  · s ,254  
Y rds Sale~  o·f cot t on of cott on  produced · .. cloth , yard~  ·  . 7' 89.0', 000 : : 8 ... 5.56 ; 000 ..  6 , 88'7 ; 250 ·4,661',0oo  · I . .. !  
Unfilled  orders  of  cloth, 'yir ds  . 14~51 5 ,000  '.  .  1.4'; 034' 000  
Active  Spindle s  15.5 I  000 ..  ' , · ....  
---------­ -----­--­-·  ...  

 .... .~ ,.-. . ~  .. (  .  I ,  .i  1 ~  ·.,  


I 
~ 
: Spinners I Margin COJ.1:tinued tho dovmw1.i:rd trend in August and reached the lowe;:;t point since September a year ago; with the single exception of Ju.ne the index has been steadily dmmwo.rd since last October a~d is now but 4 points p,bove normal. The; index ·fell from 167 i.n ,July ·to . 164 in Augu:;rt, and · compares with 160 Qr norrnal i):;, 'Aw;us.t; .1920. The ,drop was due largc:iiy· to the. higher prices of cotton, althoiJgh yarn prices .vcertt up, but at a'less rilpid rate. · 
During the .Po nth, .. American middling cotto~· in Liverpool averaged 
10. 78d against 9. 67d ::.n July, ~·,hereas 3'.2 -tviist cotton ya.rn in lfonche~ter averaged 17. 70d, compa.red to lt3. 20d. in July. Cotton pri'ces have gone up nE..:ar­ly 53% during the eight months of the pre;:; ent ~rna.r, while yarn prices have ad­vanced but 43%. In the la.c:t wcek> of /,ugt.:st, cotton c.veraged l?.04d and 32-. twist yarn sold for. J8.75d. The·rnt:i.o at these prices .is 4 points· below nor..: mal, indicating that tho demand· for cotton is likely to decline .unle2-s there , is a dovmward movet'lent of cottori prices or an upward revision of yarn prices. 
... ... .. ... Spinr:ier ~... argin . ... -· · ~ 
, ... . . ..·····.. ~ . 
1927 1926 1925 
January 174 150 .. . l .7.4. 
F'ebruilry 170 160 168 
March 173 156 ; 165 i 
April ... : r .1.68 1·55i 166 I 

. Mriy . , , '153" ., 163· .....
165." 
·June . -·: 172 ~ 157 '·, · 152 ! I 
J' \l· I~y"" ~ ..:_.,16.7 .158 . .• ::147 . :J 

' l . 
•· ~ ... 
.. A~gust· . ,; ·1 .. : 1·64 160 : .-1'5 3 . " 
· 'septeiube.r 

~~: '.".:i;f-\I>: : .. ·... :.. · ·. -' 
· ·octob~r ·' 
November 187 . 163 ... : : De·ce~bef . . · 
' . ·186 162 ·.·; 
1 
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9
TEXAS BUSINESS REVIEW 
Agriculture 
The agricultural situction in Texas failed to make the progress in August which was noted in July. While conditions arc fnr fror.: being serious and while crops for the most pert arc fair to good, yet th(,r e ar e many things to be desired in placing agriculture in the r.10st favorabl8 position. Reports coming to hand show conditions too dry in one secti'.m, poQr yield i..; others, and severe insect damage ·in s t ill others . Prices of grains and most feed crops declined r ather sha.rply during the month, and the yield per acre of wheat was very low'. 
In spite of these discourae;inr.; influE:nccs , crops arc r.mturing about as usual, and final returns from this year's harvest m~y be much better than present indications seem to show. The threshi ng se'.1.san is over, · and consider­able land has been prepared for fall sowing, although very little actual planting has taken place. Farmers are experiencing little diffi~ulty in ob­taining ample labor for harvest, and the weather has been favorable for gather­ing crops in tho past few weeks •. 
The September 1 r eport .of the United Stutes Dep'lrtment of Agricul­ture indicates the.t crops generally in this State arc only fair but that with a spell of good weather the final harvest is likely to be better. The section of the report covering corn, ~eed crops, and cotton is the nest encouraging pnrt of the report for Texas. 
The condition of the cotton crop is pln.ced at 56/~ of normnl, com­pared to a 10-yee.r average of 53%. Thie: is a fuirly good shovring in view of the poor st~rt of the crop, the r Qthcr dry summer, and the prevalence of in­sects and fungous diseases. Considerable root rot is r eported in some parts of the State, und weevil da.mn.gc is quite generul. A condition of 56% indi­cates a yield of 137 pounds of lint per acre . This shows a final yield of 4,700,000 bales on the 16,354,000 acres left for harve st . On September 1, 928,000 bales were ginned in the Stat e against 488,000 bal es on the same date la::>t year. 
Bolls are opening much earlier this ye'lr than usual, and harvest­ing is making re.pid progress. Labor is ample and most of the cotton has been ginned very promptly. Marketir..g r eyort[_; 8.re conflicting; some SP... y most of the cotton is being hold, ond others shovr that farinc:rs are selling as quickly as tho bales come from the gin. It sa cJM:; qui tE: likely that the crop is moving about as 1.rnual; some producers ar c holding for higher prices, nhilc others are selling immediately~· · Prices moved up\v9rd all duringthc month and reached the highest quotations on August 29 th11t have beeE r ccchcd sil~ce th<J sumr:wr of 1925. December New York futures closed on August 31 o.t 22. 22;i compared to 17.72;i on the same d'lte le.st yec..r. Tho. mp.rket. has been very sensitive to bad news and each unf'lvor uble report send:: the market upvn,rd. 
During the month, 633,000 be.ks were cor.suJ:i.cd i:!1 the United States, 
the highest august consumption on r ecord and nearly equal to the r ecord month 
of last Mo.rch when 694,000 bales were used. The cotton e;oods markot is firm 
SO that r o.w cotton price:.:; should be T!lO.into.ined for SOP.',Q months to cone, 
The Bure:J.U of Lnbor Statisties composite index '.'IC;?:t up from 144.6 
in July to 146. 6 in August and com;x:r e s with 149. 2 in flugu st l ust ycu.r. The 
farm products index incren.sed from ·14D. 5 to 146. 2 during the :.ionth. In August 
of 1926 the index stood ~t 137.9. • 
Shipmr.mts of fruits rnd vcgL;tri.b.les in Tc:iu.l::; during .i\.ugust made ro.ther 
• 
a poor showing in contra.st to the heavy monthly loadings so far this year. However, there has been ·a very erratic tendency in shipments from month to month, and the movement may be normal. Comparable figures are not available for past years, but it appears very likely that the decrease is seasonal, and the volume of ship:t:lents should incren.se over the next few months. During August, only 783 cars were loaded, compured to 2,550 cars in July and 5,643 in June. 
Loadings of pears went up from 37 cars in July to 137 cars in August ~ and sweet potatoes increased from 5 to 44 cars. On the other hand, onions, tomatoes and potatoes fell off to a. few ca.rs. Watermelons decreased from 2,197 cars to 446. Two loads of apples, the first of the season, were shipped in August. 
Prices for the most part held up remarkably well, considering the season and the competition which Texas ship~ents had to meet on the Eastern markets. Potato prices viere upward after the last Government report showed a considerable decre11se from earlier forecnsts. Prices for peaches were slightly downward, as were prices on sweet potatoes. Apples in carlot quan­tities were quoted above last year's prices. 
Texas Fruit 	and Vegetable Shipments * in car loads . :· 
August, 1927 July, 1927 
I 
i 
.1 
i 
l 
I 
i 
. , 
! 
Cabbage Sweet· Pot a..toes Oni ons · Tomat oes Pot atoes Wat ermelons Cantal oupes Peaches Pepper s Gr apes ,Pear s Appl es Mixed Veget~bles 
Total ·: *Fr·om the U. S. 
1  
4:4  5  
8  33  
2  85  
6  11  
466  2,197  
115  113  
46  
2  3  
14  
137  37  
2  
1  5  
783  2;550  
Depar tment  of  Agr icultur e  

Livestock 
As a result of prolonged dry weather in several sections of the State, the liveGtock outlook is a little less promising than it was six weeks or two months ago. While the situati::m is not serious , the condition of ranges and all classes of stock deteriorated rather severely during August. According to the estimates of the United Str•tes ·Department of Agri.culture, cattle ranges deteriorated 5 points ~n August, or from 87'/o to 82% of normal, which compares with 93% at this period last year. The condition 0£ cattle declined 2 points to 87%; a year ago at this time, their condition was placed at 94%. Larger shipments are noted to points outside the State, but there is an increasing tendency to hold stoekers and f eeders on the ranges where feed is abundant. 
Higher beef 	prices will quite likely stimulate more feeding this fall than 
....~here was in past yea.rs • . 
,........-...... . sheep and""goats "are holding up well in spite of a 12 point decline in the condition of rang.es. The . ~ondition or· sheep is placed at 88% against 93% last month, and the condition of goats dropped from 92% to 87%. Many · aged ewes and wether -lambs have been sold to contractors for shipment to feed lots in other States, while most of the ewe ·lambs are being held on 'ranches. · ..... :· Fall she~iIJ;g .i~ ~aking good progress and clips are selling at pri,~es .:2~. to 4.¢' a pound over the spring sales. Imports of wool into the cou~~ry have been comparatively light ·ror several months, and world supplies are .below those of a year ago. This situation, coupled with better fall de­mand for woolen goods, 'is responsible for the advancing price::>. , After a seasonal decline in demand for pcultLy lllld .dairy products, .. mark~ts for these. pr9ducts have begun' ·to firm up und the next few months should witness better prices. Cold storage holdings of butter· are --qery large in :the country so that the upward tendency of prices may be slower than usual. Unofficial reports indicate that the turkey crop will be very large this year and present conditions point to fair prices. · . Shipments of livestock inc_reased shar.ply in August, cattl'e and calves accounting for most of the increase. Total receipts o.t the Fort Worth yards, exclusive of horses and mules, were 164,368 head, compared to 133,690 head in July and 115,175 in August of 1926 • ., .. Prices were ·:f'irm dur'ing the in6n.th ·and trend.ed upward ·generally. Hog prices recovered most of the loss recorded in June and July, und beef prices were the highest since 1920. Althou~h cattle shipments are heavy at this time, the movement is quite likely to be temporary, insuring prices around present levels for some months to come. The corn and hog ratio is again back to normal after being below for several months. The normal condition is due to the dropin the price of corn and the increase in the price of hogs. Handy-weight hogs were selling on the Fort Worth market for the week ending September 11 at 11.50.¢' a pound against 10~25t last month, und prime beef steers were bringing 10.25.¢' to 10.75.¢', half a cent up for the month. Calves advanced slightly to 11.60.¢'. Best lambs were selling at 13.¢' compared to 12.50.¢' a month earlier, and muttons brought 8.¢', a cent above quotations in July. 
Livestock Recei pts ut For t  Wor th*in August  
Cattle Cal ves  August , 1927 80 , 545 42, 598  Jul y, 1927 71,729 19 , 055  August, 1926 59,124 20, 701  
Hogs Sheep  *Fr om  t he For t  18, 349 18 ' 065 22,876 24 , 829 Yior th Stock Yar ds Company  12,455 22 , 895  
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Texas Crop Report, September l, 1927 
The Crop Reporting Bourd of tho United States Department of Agri­culture made the estimates and forecasts from reports and data. furnished by crop correspondents, field sto.tisticia.ns, and cooperating Sta.to Boards of Agriculture ond Agricultural Colleges as of September 1, 1927. The condi­
tion of potatoes o.nd svreet poto.toes wo.s reported o.s being less favorable than on August 1, while Apples vlere improved; .'the condition of peaches and grapes did not change 
. . ·-. ... . ... '· Texas Cr op. Rcport,,J3e.pt~ptber. 1, l~.27. .... . Condition Pr oduct.ion 
,., •. I 
Sept ember August . . (In thousands of bushels) 
. . ! . . 
1, 1927 1, 1927 Harvested, 1926 Indicat ed, 1927 
Corn 81% 84%'. .61,178 114, 646 Winter Wheat 9. 7* 32,796 17, 829 Oats . ·22* I '. 22* ' . 83,666 45,804 Berley 16* .i6* ·..' ! : . 7' 700. 4, 928 
• 
Rye . t* . 206 380 Peanuts · 81% · 49', 345 · 1bs. 95,018 lbs. 
,
Potat o'es .· 62%·· 68% 2, ioo· 2,449 
Sweet Potatoes 70"/o 82% 8,556 11, 544 
Apples 33%· 31% 380 
Peaches ._. 25% 25% '2,310 785 
Grapes 67% 67% T , 200 1, 283 
*Bushels per acre