VOLUME VII, NUMBER 2 March 27, 1933 £VENTS of the past few weeks have demonstrated what can be accomplished in time of acute economic crisis under an alert and aggressive president with popular support in spite of our government system of checks and b are contributing immensely to the development of a broader public per­spective. For example, an editorial in the Dallas News of March 18 reads in part: "The emergency in this country is under control, but the larger problem remains. Acute symptoms have been alleviated, but the cure has yet to begin. Ills such as beset us do not vanish at an abracadabra from Washington and President Roosevelt is under no deception as to that. His program of trade encouragement abroad must be put through if we are to distribute our produc­tion to economic advantage. Customers are what we need. The walls that keep them away must be torn down. Here is the task of empowered democracy. There is no better time to get down to it than right now." Enactment of recent emergency banking legislation has led to much discussion of inflation possibilities and to divergent opinions as to the harmful or beneficial effects of such action. Undue importance may readily be attached to this phase of the administration program and unwarranted conclusions are likely to be reached. It is therefore essential that public attention be directed to measures designed to promote sound expansion of busines:; rather than lo monetary proposals calculated to rai::e us at once from the depths of depression to the heights of prosperity. Standard Statistics Company in its March 15 issue declares in analyzing the prospects for inflation in the United States and of the effects of inflation in leading European countries: "The exact meaning of the term inflation is neither generally understood nor uniformly explained. For the purpose of this analysis, inflation is taken to mean (l) abandonment of the gold standard with a managed currency, leading to price inflation in terms of currency, or (2) debasement of the currency (i.e., re­duction of the gold content of the dollar) and creation of unse­cured paper money. When currency is inflated or debased, its purchasing power falls, and commodity prices rise faster than business volumes .. .. It may be said definitely and positively that inflation through actual debasement of the currency is out of the question. Plans of the new Federal government rest upon 'sound and adequate currency.' . . . "In sum, the effect of the new currency in advancing prices will come about rather through its stimulus for business recovery than through any stimulus it may provoide to commodity or se­curity speculation through its inflationary aspects. While it is too early to pass final judgment, it may be said that major infla­tion of currency is not in prospect, nor will the evils witnessed in other countries as the result of currency debasement be repeated in the United States.'' In Texas and the Southwest, adjustments of industry to the lower price levels have probably been about com­pleted and this region will gain more from a gradual rise in the price of its basic commodities as a result of improvement in business conditions than it will from sporadic price changes through tampering with the cur­rency for inflationary purposes. Business confidence seems on the point of returning and it is to be hoped that from now on the attention of political and industrial leaders will be directed to an increasing extent to such problems as the removal of the barriers to international trade, the creation of a sound banking system, coordina­tion of our transportation system, and a readjustment of the capital structure of corporations to meet the condi­tions brought about by the lower level of prices. FINANCIAL It is unnecessary to review in detail the momentous banking developments of the past six weeks as the news­papers have featured the story almost from hour to hour. Once Michigan had set the example with a State-wide banking holiday, the rapidly increasing pressure of deposit withdrawals forced wholesalP, suspensions in state after state and eventually resulted in President Roosevelt's proclamation closing all commercial banks in the country effective March 6. On March 9, the Con­gress in a called session, enacted an emergency banking law giving the President broad powers over the banking system and making provision for the temporary issuance of an enormous volume of federal reserve bank notes. Beginning with March 13, solvent ntttional and state banks, and it is to be hoped only those which are solvent, have been gradually allowed to resume business. Present indications are that the money panic has run its course. Statistics reveal the magnitude of the panic. Total currency in circulation (unadjusted) rose from $5,616,­000,000 on January 21, to $7,538,000,000 on March 3, no less than $1,506,000,000 of this expansion occurring in the last six days of the period. From January 18 to March 1, the total deposits of the reporting .member banks declined by some $1,904,000,000. To meet this huge liquidation, the banks first employed their excess reserve balances, estimated at $650,000,000 on January 15, then sold wholesale their holdings of bankers bills, and during the two days of March 2 and 3, borrowed from the Reserve Banks the amazing total of $702,­000,000. From February 21 to March 3, federal reserve note circulation jumped by $1,215,000,000, and, partly as a result of heavy gold withdrawals, the combined reserve ratio of the Federal Reserve System dropped sharply from 61.2 per cent to 45.6 per cent. At the height of the panic, there was a widespread feel­ing that the United States would be forced off the gold standard indefinitely and that an immediate price infla­tion was in prospect. At the time of this writing, that fear has been definitely dissipated. With the present restrictions forbidding commercial banks to pay out gold and gold certificates the country may be said to have adopted a modified gold standard. This latter standard permits the export of gold to meet legitimate business requirements and therefore holds the foreign exchange rates just as definitely within the gold points as before the banking holiday. Accordingly, no substantial deprecia­tion of the dollar in terms of foreign currencie> is possible. Indeed, since the balance of international pay­ments continues to be definitely in favor of the Unit<>d States, there is every prospect that the dollar will shortly move to a premium and that a return flow of gold will set in. By many people the emergency banking law which permits the issuance of a vast amount of new currency is regarded as distinctly inflationary. It should be emphasized in this connection that this new money is not fiat currency for it is to be fully collateraled either by federal government obligations or by acceptable com­mercial paper. As this writer sees it, the recent develop­ments are more deflationary than inflationary in charac­ter. Except in districts which are short of banking facilities, it is very unlikely that much of the new currency will get into circulation and that which does will probably be returned to the issuing banks shortly. It would seem that the added new currency in circulation would carcely offset the volume of bank deposits tempo· rarily taken out of circulation. However, it is certainly true that the new legislation provides a great deal of potential inflation and, if returning business confidence and activity pump the new credit out of the banks, a substantial price rise would be possible. The financial panic from which we have just emerged should be regarded as a decidedly favorable develop­ment. The catastrophe so long dreaded has actually occurred and has proved to be much less serious than was feared. The resultant improvement in business psychology should be marked. Further, there is good prospect that most of the really insolvent banks will not be permitted to reopen and this will, temporarily at least, remove the fearful burden of continuous bank failures from the situation. Of much greater significance is the prospective early enactment of a genuine banking reform bill and a forced balancing of the federal budget, both of which are prerequisite to real business recovery. Statistics of bank operations in the 11th District reflect the money panic but indicate that the panicky situation was much less advanced than in eastern and nothern districts. Total deposits of the reporting banks declined by $4,000,000, and the banks obtained greater liquidity by reducing their loans $3,000,000, selling $5,000,000 of government bonds, and borrowing $1,000,000 from the Federal Reserve Bank. Federal reserve notes out­standing of the Dallas Bank increased by $18,372,000 from February 21 to March 8, reaching a total of $54,617,000 on the latter date, but the great bulk of these new notes is still in commercial bank vaults as extra till money. (In Millions of Dollars) Feb. Jan. Feb. 1933 1933 1932 Total Debits to Individual . Accounts ----­------------------­--­---------$399 $583* $457 Condition of Reporting Member Banks on ~~~·31 Feb. 1 1933 Mar. 2 1932 Deposits (Total) ---------------------------$349 Time ---------------------­----------------------­128 Demand --------------------------------­221 $.%3 130 223 $373 129 244 Borrowings from Federal Reserve _ 1 Loans (Total) -------------­-----------------­214 On Securities -------­--------------­-----­--­68 Alt Other -----­---------­---------------­146 Government Securities Owned._____ 89 222 69 153 94 6 270 80 190 86 *five weeks. STOCK PRICES Average price> of stocks declined 8.6 per ?e~t during the month of February. The Standard Stat1st1cs Com· pany's index of 421 stocks combined stood at ~.9 for February, as compared with 49.l a month earlier and ,56.5 for February last year. This index is based on the average for 1926 as equal to 100. • ···Utilities made the largest relative declines, both as compared to the preceding month and also February a 'Year ago. Feb. Jan . Feb. 1933 1933 1932 Standard Indexes of the Securities Markets 421 Stocks Combined.______________________ 44.9 49.1 56.5 351 Ind ustrials ·----­------­-------------------­ 42.5 46.2 52.9 33 Rails ------------------------------­----­ 26.7 27.6 34.2 37 Utilities ----------­-----­----------­--------­ 73.l 81.8 92.8 COMMODITY PRICES · With prices of farm products leading the way, com­modity prices continued on the downgrade during the month of February. All of the indexes presented below shpw declines but the farm groups had the largest relative drops. Feb. Jan. Feb. 1933 1933 1932 Wholesale Prkes: U. S. Bureau of Labor Statis­tics (1926 = 100) ------------------59.8 61.0 66.3 The Annalist (1913 = 100) _________ 80.5 82.1 92.3 Dun & Bradstreet, Inc·-------------~--$6.35 $6.53 $7.32 Farm Prices: U. S. Department of Agricul­lure 49.0 51.0 60..0 (1910--1914 = 100) __________ _ U. S. Bureau of Labor Statis­tics (1926 = 100) 40.9 42.6 50.6 Retail Prices: Department Stores (Fairchild's Publications) (Jan. 1931=100) 69.9 71.1 80.l COMMERCIAL FAILURES Whatever other forces may cloud the business horizon, the record of commercial failures in Texas continues to stand as one from which considerable encouragement may be derived. Of course, no one will deny that each failur.e represents a business tragedy for some individual, but the number of these insolvencies has been kept at a level much lower than in previous depressions and, in fact, lower than in some "good" business years. For example, according to weekly reports from R. G. Dun and Company, there were only 71 insolvencies in Texas during the month of February; this number is smaller by 13 per cent than that for February a year ago and the average for February during the past four­teen years. Since 1920, there have been seven cases in which the total number of failures during February was greater than the number for the month just past. Total liabilities amounted to $1,421,000 during Febru­ary, a decline of 18 per cent from the $1,734,000 total liabilities reported in February a year ago. The average size of the bankruptcies was also smaller than in Febru­ary a year ago, as shown by the fact that the average liabilities per failure this year were $20,014 as com­pared with $21,146 in February 1932. Groceries and meat markets shared with dry goods and apparel stor~~ first place in the number of failures, with 13 insolvencies in each of the two groups, while drug stores came third with 11 failures ; last year these three groups accounted for 10, 18, and 6 of the failures respectively. The rest of the failures. were distributed among numerous small groups of businesses, with only the general stores group involving as many as 6 failures. Feb. Jan. Feb­1933 1933* 1932 Total Number _______________ 71 78 82 Average Weekly Number 18 . 16 20 Total Liabilities ________ 1,421,000 1,386,000 1,734,000 Total Assets _________________ 561,000 656,000 745,000 Average Liabilities per Failure ---------------20,014 17,769 21,146 *Five weeks. TEXAS CHARTERS During the month of February, the Secretary of State granted charters to 130 new corporations whose authorized capital stock totalled $2,679,000. Both in number and in authorized capital stock the totals for February are smaller than those for January, or Febru­ary a year ago. Twenty-two out-of-State corporations received permits to operate in Texas. This total is slightly smaller than that for January, and is less by 27 per cent than that for February a year ago. Feb. Jan. Feb. 1933 1933 1932 Capitalization _________.$2,679,000 2,829,000 5,315,000 Number -------------------130 140 167 Classification of New Corporations : Oil ---------------------25 28 36 Public Service ________ 0 1 1 Manufacturing ___________ 19 16 18 Banking-Finance 8 8 8 Real Estate-Building _ 16 11 23 Transportation ----------0 2 2 Merchandising ----------32 42 45 General ---------------30 32 34 Number Capitalized at less than 5,000 ·------51 33 57 umber Capitalized at 100,000 or more_____ 7 9 11 Foreign Permits ________ 22 23 30 DEPARTMENT STORE SALES Sales in 93 Texas department and clothing stores reporting to the Bureau of Business Research showed a drop of 23 per cent during February as compared with sales during the corresponding month a year ago. This decline in Texas department store sales compares favorably with the record for the country as a whole, however; according to the Federal Reserve Board, depart­ ment store sales in February in the United Stares were 25 per cent lower than in February a year ago, and the 19 stores from the Dallas District included in that sum­ mary showed an average decline as compared · with February 1932 of only 21 per cent. Austin, with a decline of only 4.1 per cent, made rela­ tively the best showing in the State, although Abilene and Port Arthur, with declines of 7.8 per cent and 8.6 per cent respectively, also showed up to advantage. The specialty shops, whether they were handling men's clothing or women's wear, did not experience declines as large as those for the other groups of stores, a tendency which was also in evidence in January. The normal seasonal variation between January and February has shown mixed tendencies in, the past. During the seven years for which the Bureau has records, a decline has been just as likely to occur as an increase. This year, there was a small decline, 1.7 per cent. Number Percentage Change in Dollar Sales of February February Year-to-date Stores 1933 from 1933 from 1933 from Report-February January Year-to-date in g 1932 1933 Jq~o, - Abilene -----------------------3 -7.8 + 4.1 8.4 - Austin ------------------------------7 -4.1 + 9.0 5.1 Beaumont ---------------------7 -26.0 -11.8 -18.9 Corsicana --------------------------3 -26.6 7.3 -15.3 Dallas ----------------------------8 -23.4 + 5.4 -19.0 El Paso ----------------------------3 -19.9 -3.2 -21.8 Fort Woith --------------~------5 -23.4 + 5.2 -22.4 Galveston ----------------------5 -29.9 -19.8 -35.8 Houston ----------------------11 -23.0 -5.2 -17.0 Lubbock -----------------------3 -16.1 -22.8 -7.6 Port Arthur -------------------4 8.6 8.0 9.7 .,..,, ·­ San Angelo ------------------__ 3 -11.3 ·-14 7 San Antonio ---------------------·6 -29.8 6.2 -27.3 All Others ----------------------25 -25.4 6.4 -22.7 STATE -------------------------------93 -23.0 1.7 -20.0 Department Stores (Annual Volume over $500,000) ___.18 -23.0 + 0.2 -20.4 Departm ent Stores (Ann ual Volume under $500,000) 38 -27.4 -10.0 -21.8 . Dry Goods and Apparel Stores ____________________ ____ 14 -28.8 -5.4 -28.7 Women's Specialty Shops____ ll -21.8 + 4.6 -15.9 Men's Cloth ing Stores ________12 -9.1 -11.2 -14. 5 The ratio of credit sales to net sales, according to reports from 69 of the stores, continues to be smaller than it was in 1932. But it is a noteworthy fact that many of the smaller stores are increasing the relative proportion, of business handled on credit. The ratio of collections to outstandings in February was 28.4, as compared with 28.3 in the corresponding month a year ago. EMPLOYMENT A second increase in average weekly wages per worker and a smaller decline in workers than usual characterized the report on employment conditions in Texas for the month of February, as indicated by reports from 946 establishments to the Bureau of Business Research and the United States Bureau of Labor Statistics. No. of Worker! Percentage Change Estab-from from lish-Feb. Jan. F eb. Jan. F eb. ments 1933 1933 1932 . 1933 1932 Amarillo ---------11 290 304 318 -4.6 -8.8 Austin -----------31 836 724 773 + 15.5 + 8.2 Beaumont ------30 2,854 2.,956 3,012. -3.5 -5.2 ____________ 113 Dallas 9,995 ­ 10,088 11,351 0.9 -11.9El Paso -------49 1,502 1,771 1,707 -15.2 -12.0 Fort Worth _____ 44 4,680 4·,926 5,100 5.0 -8.2Galveston --------29 1,254 1,197 1,661 + 4·.8 -2.4.5 Houston ----------86 15,307 . 15,543 15,654 1.5 -2.2 Port Arthur -----14 2,24,9 2,259 2,966 0.4 -24.2San Antonio ---75 4,287 4.,4,73 4,64-1 4.3 7.6 Waco -----------------19 914 878 868 + 4.1 + 5.3 Wichita Fall s ----28 628 685 594 6.9 + 7.4 Miscellaneous --417 17,059 17,024 18,941 + 0.2 9.9 ___________ 946 STATE 61,865 62,833 67,586 1.5 8.5 As of February 15, there were 61,865 workers on the payrolls ~f the 946 establishments, a decline of 8.5 per cent from the number employed by these same firms on February 15 a year ago. Although the number of em­ployees still continues to decline as compared with a year ago, the comparison is much more favorable than has been the case in preceding years. For example, last year, the number of employees on February 15 was 15.l per cent smaller than on the corresponding date in 1931, and the total for 1931 was less by 15.2 per cent than that for February 1930. The decline as compared with January was smaller than usual-only 1.5 per cent, whereas in previous years the seasonal drop .from Jan­uary to February has been as much as 3.4 per cent. Average weekly wages per worker increased from $21.34 in January to $21.4·3 in February. Because of the decline in the number of workers, however, total weekly income to wage earners on the payrolls of the report!ng firms was 1.1 per cent smaller than for the corresponding period a month earlier, having declined from $1,341,000 in January to $1,326,000 in February. There was a small gain in average weekly wages per worker last month, too. With only five exceptions, average weekly wages per worker have been dedining each month since October 1930. BUILDING PERMITS February building permits made an increase substan· tially greater than could be accounted for by purely F eb. Jan. Feb. 1933 1933 1932 Abilene 1,500 $ 945 $ 42,525 Amarillo ----------------740 15,511 35,082 Austin 385,490 50,624 636,577 23,123 Beaumont -------------------17,905 9,278 Brownsville 1,150 455 3,415 Brownwood 515 225 5,600 Cleburne 700 1,800 12,625 Corpus Christi 9,963 3,800 16,250 -----------~---- Corsicana 7,500 10,175 2,400 Dallas _278,304. 170,006 142,491 Del Rio 2,744 1,130 3,300 Denison 1,350 3,250 Eastland 1,500 400 El Paso 4·7,380 10,269 16,439 Fort Worth 67,100 85,400 191,725 Galveston 28,955 20,130 54,001 Harlingen 475 1,190 9,005 Houston ------------------111,375 258,547 290,587 Jacksonville 1,115 Laredo --------------------------100 1,000 2,700 Longview 56,000 30,980 564·,000 Lubbock 1,390 14,129 2,430 McAllen 500 200 1,825 Marshall 1,324 4,738 46,914 Paris 1,255 34,060 15,921 Plainview 5,000 Port Arthur 3,300 4,905 4,337 Ranger San An gelo -~-f; ./} l 4'.Jf} :-.%0 -·-------------­ San Antonio 26,317 48,841 81,033 Sherman 1,825 2,799 5,531 Snyder 1,000 Sweetwater 700 600 75 Temple 4,850 5,400 10,700 Texarkana 2,300 9,053 3,751 Tyler 30,946 43,623 93,125 Waco 23,453 25,36§ 36,302 Wichita Falls 4,662 l ,9ti5 109,264 TOTAL $ 874.059 $2.,473,653 __________________________$1,127,108 ~asonal influences. Report3 to the Bureau of Business -R~search from chambers of commerce in 38 of the lead­ing cities of the State show that building permits amount­ing to a total of $1,127,108 were issued during February, an increase of 29 per cent over the total for the month _previous, $874,659; when it is considered that the aver­ •ge increase_from January to February during the past six years was only 7 per cent, the showing for February is encouraging. Building permits issued continued at a level approximately half that for the corresponding month a year earlier, a tendency which has been in evidence for more than a year. AccordiDg to the Annalist index of wholesale com· modity prices, there has been virtually no change in building material prices, the index averaging approxi­mately 106 since the beginning of the year as compared with 108 during the early _part of 1932; this index is based on_ the average for 1913 as equal to 100. LUMBER Lumber production at Southern pine mills averaged 160,981 feet per unit during the month of February, according to reports to the Bureau of Business Research by the Southern Pine Association. This average output _ represents a decline of 2.3 per cent as compared with that for January but is 8.3 per cent greater than produc­tion by the same units in February a year ago. Shipments, however, increased during February to an average per week of 167,316 feet per unit, as com­pared with 161,569 feet per unit during the preceding month. Last year in February, shipments averaged 197,­046 feet per unit each week. Average weekly shipments _ exceeded output by 6,335 feet per unit, or 3.9 per cent during February. Unfilled orders at the close of February amounted to only 450,561 feet per unit, less than three weeks' run at current operating schedules. At the corresponding time last year, unfilled orders reached 542,449 feet per unit. (In Board Feet) Feb. Jan. Feb. 1933 1933 1932 Average Weekly Production per Unit.____________160,981 164,718 148,666 Average WeeklyShipments per Uni t._____________ l67,i>l 6 161,569 197,046 Average Unfilled Orders per Unit, End of Month_______450,561 494,629 542,449 CEMENT Contrary to the usual seasonal tendencies, Texas cement mills curtailed production during the month of February. Reports to the Burea~ of Business Research from the UDjted States Bureau of Mines show that out­put of Texas Portland cement mills amounted to _only 197,000 barrels, as compared with 255,000 barrels in January-and 280,000 barrels in February a year ago. Considering the low ebb at which building in Texas has been so far during 1933 and in 1932, this curtailment in output is not unexpected. ShipmeDts totalled 203,000 barrels, and were slightly in excess of output for the ~onth; last year in February, production was 24,000 barrels over shipments, and stocks at the close of that mon-th were the highest for 1932. Stocks at mills at the close of February this year were only 639,000 barrels, or 1.1 per cent less than those of the preceding month and 25 per cent less than in February 1932. (In Barrels) Feb. Jan. Feb. 1933 1933 Production ····--···--·-·--·-··-···-197,000 255,000 280,000 hipments -··--·--····-------···--203,000 285,000 256,000 Stocks ------···-----··------··-·-· 639,000 6-16,000 847,000 PETROLEUM There was presented last month before the annu·al meeting of the American Institute of Mining and Metal­lurgical Engineers a long-range forecast on the con­sumption of petroleum and natural gas in the United States. In the period 1901-1905, coal furnished 88.7 per cent of the annual supply of mechanical energy used in the United States; petroleum furnished 6.1 per cent, natural gas 3.2 per cen.t, und water power 2.1 per cent. During the period 1926-1930, coal furnished 62.7 per cent of total energy; petroleum, 23.1 per cent; natural gas, 7 per cent; and water power 7.1 per cent. In the intervening period, the total amount of me­chanical energy consumed in this country has increased by 147 per cent. Therefore, the actual increase of the amounts of petroleum and natural gas consumed in pro­ducing mechanical energy was of considerable magni­tude. In the address above mentioned, it is forecasted that · the mechanical energy utilized in the United States in 1950 will be 61 per cent greater than in 1930, and that of this increased quantity in 1950 (total of 14,500 tril­lions of B.T.U.s), petroleum and natural gas will con­tribute 45.3 per cent whereas coal will contribute oDly 46.6 per cent and water power 8.1 per cent. The net result indicated is that in the coming twenty years, the output of coal will increase little if at all, whereas the outlet for petroleum and natural gas will be considerably increased_:__a forecasted increase of more than 65 per cent. The figures of this forecast are discussed here, not in the belief that they may prove correct, but because these figures present judgments concerning mile posts in long range planning, as applied to the future consumption of the nation's energy resources. There is no question that Texas will have to be in­creasing! y concerned with the changing·market demands for the various fuel and energy resources which it pos­sesses in. such great abundance. Texas has risen from a small producer of petroleum in 1900 (or even in 1910) to the current position of furnishing more than 40 per cent of the nation's output and 25 per cent of the world's output. It is of interest, too, to note that exports of petroleum products decliriied 20,000,000 barrels in 1932-although imports of these commodities also fell off substantially. However, exports of petroleum products in January 1933 were considerably above those of December 1932 .. D;ir­in()" the first nine months of 1932, exports of lubncatmg oils from Texas increased somewhat over the figure for · the first nine months of 1931. During the same period, gasoline exports from Texas decreased by 2,000,000 barrels. Exports of carbon black in 1932 were the highest ever recorded-and a large share of the carbon black pro· duced in the United States comes from Texas. According to the American Petroleum Institute, daily average production of petroleum was: (In Barrels) Feb. 1933 1933 1932 Feb. Jan. 44,325 49,037Panhandle ---------------·------------43,050 46,775 48,100 North Texas ---------------------------46,238 West Central Texas____________ 24,837 24,388 24,150 158,350 176,163 West Texas --------------------------157,738 East Central Texas_____________ 58,037 48,575 52,438 223,750 315,137 East Texas -------------------------299,513 Southwest Texas ----------------49,575 50,925 51,875 Coastal Texas -----------------133,462 131,975 112,412 ST A TE ______ ---------------------------812,450 729,063 829,312 UNITED ST A TES ______________ 2,082,125 1,953,125 2,143,275 120,607 237,750 Imports ---------------------------------139,393 ew developments m Texas, according to the .Oil Weekly, were : Feb. Jan . Feb. 1933 1933 1932 Permits for New Wells__________ 542 501 508 Wells Compl eted -------------------­ 443 533 499 Oil Wells -----------------------­ 291 367 401 Gas Wells ---------------------­ 12. 14 13 Initial Production (In Thousands of Barrels)--------­ 1,328 1,877 3,017 Dm:;ing January, gasoline sales totalled 56,254,000 gallons, according to taxes paid to the State Comptroller. Last year in January, gasoline sales totalled 55,289,000 gallons and during December, 55,231,000 gallons were sold. COTTON MANUFACTURING IN TEXAS February was a good month for Texas cotton mills, according to reports to the Bureau of Business Research from 21 Texas cotton mills. Allhough production and shipments were characterized by declines not nearly so great as normally occur from January to February and although the totals in each case were higher than in February a year ago, the outstanding feature of the report was the increase in unfilled orders. For four consecutive months, now, unfilled orders at Texas cotton mills have been going up. A total of 3,990 bales of cotton was used during Febru­ary as compared with 4,170 bales during January and 3,702 bales in February a year ago. The decline from January to February amounted Lo only 4.3 per cent, whereas the average decline between. these two months during the years 1927 to 1932 was 5.6 per cent. Output, at 4,153,000 yards, was practically equal to that for January, although usually there is a decline of 4.3 per cent in production in February; and sales declined only 2.7 per cent from 3,977,000 yards in January to 3,869,000 yards in February, when the average decline in previous years has been 8.5 per cent. Unfilled orders at the close of February totalled 7,049,000 yards, an increase of 3.9 per cent over the 6,786,000 yards on unfilled orders at the close of Janu­ary; last year at the close of February, the Texas cotton mills had forward bookings totaling 4,162,000 yards. Feb. Jan. Feb. 1933 1933 Bales of Cotton Used ______ 3,990 4,170 3,702 Yards of Cloth: Produced ---------------4°,153,000 4,207,000 4,000,000 Sold --------------3,869,000 3,977,000* 3,566,000 Unfilled Orders ---------7,049,000 6,786,000* 4,162,000 Active Spindles -------------144,824 144,424 143,426 Spindle Hours _____________35,437,000 40,340,000 34,401,000 *Revised. SPINNERS MARGIN Spinners margins tended to decline during February, though the average percentage ratio for February was 176, the same as in January. The average pence margin declined from 3.97 d for January to 3.80 d for February, and during the last week of February the pence margin declined to 3.70 d. This narrowing of margins was due mainly to the advance in the price of raw cotton. Yarn prices actually declined slightly. COTTON BALANCE SHEET Supplies of cotton in the United States on March 1 were 13,634,000 bales, compared with 14,337,000 bales last year, a decrease of 703,000 bales. During the past seven years, total changes in the sup· ply of cotton in the United States on March 1 equalled 16,924,000 bales. Corresponding changes in the index price amounted to 2, 701 points, or 15.96 points for each change of 100,000 bales in supply. On the basis of this ratio, the decrease of 703,000 bales in supply should cause an advance of 112 points in the index price. On the other hand, stocks of American cotton in European ports and afloat to Europe March l were 452,000 bales more than on this date last year. The net decrease in the effective supply of cotton in the United States an,d Europe combined is only 251,000 bales. The net change in price therefore_ is 40 points up in the index price from March a year ago. The index price last March was 10.30 cents, and the index price now, based on supply changes only, is 10.70 cents. The Bureau of Labor Statistics iri.dex has gone down from 66 last March to 59.8 at the present. The indicated actual New Orleans spot price, based on supply and price index changes is 6.4·0 cents. When this is cor­rected for the increased spinners margin, the indicated price is 7.17 cents. When the price is calculated on the basis of the relationship bet ween percentage chan~es in supply and price over the past se\en years, the indicated price for New Orleans spot cotton is 6.37 cents. The Bu­reau of Business Research cotton supply-price chart in­dicates a price of about 6.-15 cents. COTION BALANCE SHEET IN THE UNITED STATES AS OF MARCH 1 (In Thousands of Running Bales) Year 1925-1926 ______________ _________ ______________ ,,________ Carry­over 1,610 Imports* 199 1926-1927 ·-----------------­------------------------------­ 3,543 232 1927-1928 -----------------------------------------­-----------­-3,762 226 1928--1929 ---------------­----------------------------­ 2,536 246 1929-1930 ----­--­------------------------­--------­ 2,313 215 1930-19'31 --------------------------------------------­ 4,530 4.1 1931-1932 -------------------------------­----------------­ 6,369 56 1932-1933 -------------------------------------· ---------­ 9,682 75 *In 500-pound bales. COTTON World cotton developments are fundamentall :v con· structive. Mid-season stocks of all cotton includirig unpicked porti~ms of crops on January 31 were 27,996,­000 bales of 478 pounds, according to Garside of the New York Cotton Exchange. This total compares with 28,­783,000 bales on January 31, 1932, and a previous five­year average of 24,300,000 bales. Consumption for the first six months of this cotton year, August 1 to January 31, of 12,035,000 bales, was the highest in three years for the same period. It is highly sign;ficant that annual con­sumption is at a higher rate now than production, and that the world carryover on August 1 bids fair to be reduced between a million and a million and a half bales. There is every indication that world cotton acreage will be increased this year but not enough to make a great difference in the crop. FRUIT AND VEGETABLE SHIPMENTS Partly because of the February freeze and partly be­cause of low prices, car-lot shipments of fruits and vegetables in Texas duririg the month of February were the smallest for any February since 1928. Only 3,946 cars were shipped during February, as compared with 6,805 cars in February a year ago, according to daily reports from the United States Department of Agricul­ture compiled by the Bureau of Business Research. The table given below shows the quantities of fruits and vegetables shipped. According to the United States Department of Agri­culture, the condition of fruits and vegetable crops in Texas on March 1 was ri.ot so good as it was a month earlier and was considerably poorer than on March 1 a year ago. Fruit and vegetable prices dropped slightly during February, the index of the United States Department of Agriculture 1.aving declined from 59 in January to only 57 for 1:·ebruary. Last year in February, this index Dec. I Estimate• Total Consumption Exports Total Balance 15,603 17,412 3,746 5,927 9,673 7,739 18,618 22,393 4,019 7,565 11,584 10,809 12,789 16,777 4,201 5,122 9,323 7,454 14,:m 17,155 4,042 6,190 10,232 6,923 14,919 17,447 3,809 5,293 9,102 8,345 14,243 18,814 2,900 4,904 7,804 11,010 16,918 23,343 3,081 5,925 9,006 14,337 12,727 22,4~4 3,253 5,597 8,850 13,634 The cotton year begins August 1. stood at 63. This index is based on the aYerage from 1909 to 1914 as equal to 100. (In Carloads) Feb. Jan. Feb. 1933 1933 • 1932 Mixed V egeta b !es _______________________________ l, 164 1,150 1,683 Spinach ________________________________l,047 1,364 1,590 Cabbage -------------------------------995 872 1,431 Grapefruit ---------------------------------357 726 1,211 Sweetpotatoes -----------------------------30 22 75 Cauliflower --------------------------­6 4 Strawberries -------------------­1 Lettuce ---------------------1 1 Tomatoes ______________..________ 1 Oranges ------------------------------46 16 27 Potatoes ---------------------------------------1 29 25 Green Peas ____________________________:__ 2 3 2 Beans-String, Snap, and Lima -----------­1 55 Mixed Citrus ------------------------------------57 88 116 Carrots ______.._____________________________________ 149 138 278 Beets ________ ---------------------------------------86 128 158 Turnips and Rutabagas -------------------1 Greens -----------------------------------11 287 147 TOTAL ________________________ 3,946 4,831 6,805 POULTRY AND EGGS Total rail shipments of poultry and eggs from Texas to points out of the State durin;r February amounted to only 167 cars compared with 307 cars du;·ing the corre­sponding month last year, a decline of 46 per cent. Ship­ments of the different cia''>'es to out-of-State points durinir February in comparison with February last vear were: live chickens 31 and 42 cars: live turk~ys 2 ~nd 1 cars : dressed chickens 79 and n cars: dressed turkeys 12 and 12 cars; and eggs 43 and 159 cars. RecPipts of eggs from other states totalled 7 cars of which 4 cars came from Karisas and 1 each from Missouri and Illinois. The price of special packed midwestern e!!gs at '.\ew York on March 9 was 17 cents per dozen. The average for February was 15 cents compared with 25 cents in February 1932. Farm prices dropped from 21 cents in January 15 to 11 cents on February 15 compared with 13 cents a year ago. FEBRUARY CARLOAD MOVEMENT OF POULTRY & EGGS''' Cars of Poultry Live Dressed Cars of Eggs Chickens Turkeys Chickens Turkeys 1933 1932 1933 1932 1933 1932 1933 1932 1933 1932 Shipmen ls from Texas Sta Lions TOTAL ----------------31 '14 Intrastate 2 Interstate -------------31 4°2 ________ 30 New York 41 Illinois Massachusetts ------­ New Jersey ---------­ Pennsylvania Louisiana ' Conn ecticut 1issouri Georgia Michi gan California 1 Alabama ------------­ Florida ------------­Rhode Island Tennessee Maryland D. of Columbia _____ West Virginia -------­ 1 2 1 79 93 12 12 2 1 79 93 12 12 1 1 43 35 1 9 4, 7 .., I 6 10 21 2 1 5 4, 1 2 3, 3 2 1 3 1 1 - -----+­ 1 4, 2 2 3 2 2 1 1 1 2 2 1 1 Receipts. at Texas Stations TOTAL 1 Intrastate ------------------1 Interstate --------------­Kansas -------------------Misso uri Illinois ----------------­ •These data are furnished the U. 5. Department of Agriculture, Crop nnd Livestock Estimates, by railway ollicials through agents at which originate nnd receive-ca r1nn •1 8hipment1 of poultry and eggs. The data r• ' r.ompilcd by the BurC'au of Business Re11carch. LIVESTOCK CONDITION AND MOVEMENTS Range and live5tock condition deteriorated consider­ably during February as a result of low temperatures during the first half of the month, according to the United States Bureau of Agricultural Economics. The second half of the month was more favorable and prospects are now good for early spring grass. 1933 Total Interstate Plus Fort Worthff __________________ 1,508 Total InrrastatP. Omitling Fort Worth -····--···-· 273 TOTAL SHIPMENTS ----------------------------------1,781 TEXAS CAR-LOTt SHIPME 1933 Tnterstate Plus Ft. WorthU ·--------·-····--·-----------3,214 Intra~tate Omitling Ft. Worth _____________ ____ _____ 592 TOTAL SHIPMENTS -----------------------------________ 3,80·6 45 160 2 1 43 159 7 36 13 50 21 1 2 1 4 4 9 2 1 3 7 10 13 3 2 2 6 2 2 1 7 1 1 6 1 4, 1 1 1 Division of all 1tation1 Cattle 1933 1932 Total Interstate Plus Fort w0 rtht ----------------155 135 Total Intrastate Omitting Fort Worth§ _________ 214 311 TOTAL RECEIPTS 309 445 ·-·-------··-·--------------------­ *These data arc furnished the United States Bureau of Agricultural Economics The following condition for range and livestock as of March 1 is reported by the Federal Bureau. Condition of Rangee Condition of Liveelock Per Cent of Normal Per Cent of Normal Cattle Sheep & Goat• Cattle Sheep Goal• March 1 ----------------------­One Month Ago_____________ 78 81 74,82 79 82 77 82 75 81 One Year Ago____ , ________ 82 85 80 83 81 10-Year Average -----------­ 82.l 84.6 82.5 86.2 85.4 Interstate rail shipments of cattle, calves, hogs and sheep from Texas totalled 2,477 cars in February com· pared with 2,290 cars during the corresponding month last year, an increase of 8 per cent. Cattle shipme~ts of 1,508 cars were slightly less than the 1,525 cars of February 1932, and shipments of sheep to out-of-State points-305 cars--were materially under the 367 cars a year ago. On the other hand shipments of calves for February of the current year-324 cars-showed a marked increase over the 223 cars during that month last year; and hog shipments of 340 cars were nearly twice as great as the 175 cars a year ago. More than 20 car­loads of sheep were shipped to Michigan and 4 cars to Ohio. For January and February combined interstate rail shipments of all classes of livestock totaled 5,590 cars against 5,081 for the same two months last year a gain of almost 10 per cent. For cattle, the figures were 3,214 cars against 3,376 cars last year; calves 942 and 584; hogs 631 and 343; and sheep 803 and 778. Receipts of livestock from other states totaled 354 cars against 556 cars February 1932 and consisted mainly of cattle and hogs. The bulk of the cattle came from Okla­home and New Mexico and of the hogs from Oklahoma, Kansas City, and Omaha. Not much change occurred in the average price of cattle and hogs from January to February, but the price tendency was slightly upward. The average price of lambs, however, was lower in February than in January which was the inverse of a year ago. TEXAS CAR-LOTt SHIPMENTS OF ~IVESTOCK FOR MARCH* Cattle Calves Hogs Sheep 1932 1933 1932 1933 1932 1933 1932 1,525 324 223 340 175 305 367 311 157 140 25 17 58 54 1,836 481 363 365 192 363 4.21 TS OF LIVESTOCK, JANUARY 1 TO MARCH 1 Cat1le Calve" Hogs 1932 1933 1932 1933 1932 3,'J76 942 584 631 343 750 34-0 277 90 48 4,126 1,282 861 721 . 391 TEXAS CAR-LOTt RECEIPTS OF LIVESTOCK FOR MARCH* Ca lves Hogs 1933 1932 1933 1932 41 36 13:/ 372 149 131 24 20 190 167 161 392 Sheep 1933 1932 803 778 173 182 976 960 Sheep 1933 1932 21 13 49 51 70 64 by railway olTicials through more than 1,500 ~tation agents, Total 1933 1932 Z,477 2,290 513 522 2,990 2,812 Total 1933 1932 5,590 5,081 1,195 1,252 6,785 6,338 Total 1933 1932 354 556 436 513 790 1,069 representing every live· stock shipping point in the State; the data are compiled hr the Bureau ,of Business Research. tRail-car basis: cattle, 30 head per car; cah•cs, 60; swine_, 80; and sheep, 250. · ~Fort \Vorth shipments arc comLincd with interstate forward:ngs in order that the bulk of market disappearance for the month may be shown. §Represents all intrastate receipts, except those billc\I from Fort Worth. Thoa.e wishing the Texas Business Review regularly wi·'I receive it without charge upon app,Hcation Entered as second-class matter on May 7, 1928, at the post office at, Austin, Texas, under the Act of .\.ugust 24, 1912.