The University of Texas Volume VII, umber 9 Entered as secoud-c1ass matter on May 7, 1928, at the post office at Austin, October 28, 1933 Texas, under the Act of August 24, 1912. Business Review and Prospect THE IMMEDIATE OUTLOOK indicates some further slack­ ening in the general level of industrial activity, but the current recession cannot obscure the fact that recovery has been making progress for 15 months. Recoveries always start too fast, receive more or less serious setbacks and after various delays receive the benefits of new wvves of confidence to produce another forward step. The emotional outburst incident to the launching of the NRA program has largely subsided, and the im· practical elements of the plan are in process of being eliminated. Competent observers see in the program foatures which, if vigorously followed through, should gradually make for permanent and substantial improve· mcnt in commerce and industry. For example, the October 5 issue of Iron Age states: "codification has brought American industry face to face with a new kind of competition. From now on sales departments must sharpen their wits rather than their pencils. With an open price policy made mandatory, undercover price chiseling is definitely out as a means of getting business. From now on service, quality and reputation will be the chief reliance of those who have products to sell." Other critics have pointed out that manufacturers by excessive quibbling over maximum hours and minimum wages have overlooked the most beneficial aspects of NRA from their standpoint, namely, permission to get together in ways which hitherto have been held unlawful. Pro· crastination, these commentators hold, has played direct into the hands of labor, and that attention should be given at once to questions of fair trade practices if industry is to reap in any large measure the benefits which the program offers. In the same connection Dean J. W. Barker of the School of Engineering of Columbia University stated recently: "The governmental partner· ship in industry, through increased control and regula· tion, seems to be one of the prominent features in the present situation which will have a considerable degree of permanence. Whatever its final form will be, the general principle is with us to stay, and it seems to be the essence of western civilization's answer to the chal· lenge which has been arising in the East." Financial events of outstanding importance occurred durin.,. the past week: First, the floating of a $500,000,000 loan ~nd the successful completion of the Government's refunding program by which almost two billion dollars of Liberty bonds bearing 4% per cent interest are to be either liquidated during the next six months or exchanged for 31/i per cent bonds running ten to twelve years. A material saving in interest charges will thus be effected. More important, however, these transactions carry the implication that for the present at least the administra· tion is committed to a sound money policy. Second, and confirming the sound money suggestion, is the plan for organizing a corporation or bank designed to free one billion dollars or more of deposits now held in closed or restricted banks. The only criticism to this plan appears to be that it should have been completed pand put into effect promptly after the financial crisis last March. At that time it might have contributed materially in broadening the distribution of purchasing pc.wer so eager! y sought for by the Administration and thus may have largely forestalled the radical currency inflation agitation in the midwest and prevented the rtcent flight of capital to foreign countries, estimated at one billion dollars. It appears that this tardiness in ameliorating the bank· ing situation is but another instance in which too much dependence has been placed upon new and untried c:xperiments when correction of defects in our established i:1stitutions would have promised positive relief for business even though improvement might not have been spectacular. Then too, the coordination of our trans· pvrtation system so as to reduce costs, and the removal of barriers to international trade so as to open broader outlets for raw materials, difficult as these problems dc1ubtless are, may in the end prove simpler and more effective for farmer and urban dweller alike than some of the radical experiments now being attempted. At any rate, there should be no relaxing of efforts to correct known weaknesses in our present economic institutions before advancing too far upon an uncharted course of price fixing, production curtailment and extreme nationalism. Although a tense international political situation has developed as a result of the withdrawal of Germany from the Armaments Conference and notice of withdrawal from the League of Nations, commerce and industry in Europe seem to be maintaining the gradual upward trend which began in the summer of 1932. Consistent improve­mrnt in business is also being reported to the l". S. Department of Commerce from countries in the Orient and the Southern Hemisphere. While international trade is still at a low level gradual expansion has been taking place during recent months. This growth in foreign trade will be accelerated as soon as the United States succeeds in adjusting itself psycho­lorricall y and otherwise to the significant transition which resulted from the War, namely, the change in its status from debtor to creditor nation. It is to be hoped that the current conversations in Washington between the United States and Great Britain regarding adjustment of War debts may prove to be a forward step not only with respect to the solution of that specific problem but also with respect to the formulation of a long-time policy regarding tariffs, quotas, exchange restrictions and the other obstacles to international trade which have been growing for the past four years. A further basis for a somewhat more optimistic outlook on the international economic situation is afforded by reports of impending recognition of Russia. Such recognition, it is believed, will furnish an additional outlet for American cotton, machinery, electrical equipment, and the like. Texas therefore stands to gain along with the industrial sections of the country in the successful outcome of these nego­tiations. Texas business during September reflected in some measure the general recession which occurred throughout the country. Cotton mill consumption showed a contra­seasonal decline. Department store dollar sales fell con­siderably short of the usual seasoned rise, although sales were greater than in August. Unfavorable showings were also made in the cement and lumber industries. On the other hand, automobile sales .were far above those of September last year. The number of commercial failures was only half that of August and about a third that of September last year. Capitalization of new firms ir. Texas was 40 per cent greater than in August and 57 per cent above September last year. The number of workers in Texas establishments during October increased 6.8 per cent over September and 17.5 per cent over October 1932, according to reports made to this Bureau covering the week ended October 14. F. A. BUECHEL. Financial Currency inflation continues to be the most important fir;ancial topic of the day, and, unfortunately, the official policy of the Administration with respect to the future oi the dollar continues to be a dark secret.· By implica­tion, however, it seems safe to say that President Roose­velt has temporarily decided against any radical currency ti;1kering. This decision has apparently been reached a·; a result of a growing appreciation that lack of confidence in the dollar constitutes a most serious obstacle to the success of the national recovery program. An unstable dollar militates against any expansion of credit periods when faced with the prospect of repayment in greatly depreciated dollars. Business houses likewise tend to avoid commitments involving future deliveries of goods. The latest (mid-September) outburst of radical inflation talk brought about a sharp break in high grade bond prices and indicated that loss of confidence in the dollar was widespread. The leaning of the Administration toward the sound money school of thought is suggested by several recent developments. In the first place, the recent Thomas­Harrison inflation campaign terminated quite abruptly, suggesting, probably, administrative pressure. In the second place, a quiet but effective newspaper campaign favoring sound money has been instituted. Incidentally, a marked swing of public sentiment against inflation has been noted in the past month. This shift in public psychology has been occasioned largely by a taste of higher retail prices and a gradual realization that individual incomes will not move up at once to offset higher living costs. Third, the foreign exchange control machinery, since about October l, has been restricting transactions in dollar futures. This represents a blow aimed directly at foreign speculators carrying short qollar accounts and might well be a prelude to actual stabilization of the dollar in the foreign exchange market. Finally, the partial conversion of the Fourth Liberty 41;4 % bonds, which was announced October 11, implies that the Government is looking toward a sound currency. The Administration continues to be vastly interested in higher prices, especially for agricultural staple products which are now noticeably lagging behind the prices of manufactured goods. Apparently, the Govern­ment plans to aid farm prices by means of a system of fixed loan values. The first of these loan plans was announced September 22, details of the plan being published October 6. The scheme provides for govern­ment loans on all low middling % staple or better cotton in the hands of growers at 10 cents per pound, the loanable value rising .09 cents per pound each month from October to July 1934. Loans are to be extended by tb~ R.F.C. at 4% interest on the condition that the grower will restrict his cotton acreage by 40'/o in 1934. The plan will probably be extended to other farm staples· i11 the near future, and will have the general effect of fixing minimum prices for the commodities involved while limiting next year's output. In order to step up general purchasing power, the Administration plans to create immediately a Federal Liquidating Corporation to thaw out the frozen assets of banks which were put on a restricted basis or closed after the bank holiday of last March. This new corpora­tion will apparently be headed by Mr. Bruere, a sound money man, and will serve primarily as a means of releasing to depositors some of the $1,900,000,000 tied up in unlicensed state and national banks. The details of the plan have not yet been made public, but the scheme will certainly involve the purchase of the best assets of the closed or restricted banks in exchange for govern­ ment obligations of some sort. The sale of the bonds wil~ then provide the cash with which to pay off depositor claims up to perhaps 50%. The plan will undoubtedly release a great deal of new purchasing power, close to $1,000,000,000, but it is most unlikely that all of this sum will be translated into immediate purchases. Despite administrative urgings, bank credit has expanded but little in recent weeks. Total loans of the reporting member banks increased from $8,538,000,000 on September 6, to $8,565,000,000 on October 4, while total bond holdings declined from $9,024,000,000 to $7,983,000,000. Total deposits of the reporting banks increased slightly to $14,934,000,000 during the same period. Never in recent years has the banking system of the country been in such a liquid position. The 17,400 com­mercial banks and trust companies operating on an unrestricted basis on June 30 reported total deposits of $43,445,202,000 and loans and discounts of $19,387,­071,000, giving a ratio of loans to deposits of 44%. This compares with 54% on December 31, 1931, 69% on March 25, 1930 and 67% on March 27, 1929. Cash as5ets of all member banks, despite a reduction of 2,800 member banks since March 27, 1930, reached a record high of $9,527,000,000 on June 30, 1933, $2,593,000,000 higher than on March 27, 1930. Excess reserve balances of member banks on October 16, were estimated to be in the neighborhood of $750,000,000. A continuation of the present return flow of currency from circulation and of reserve bank open market purchasing would result in a further increase in excess reserves. Clearly, therefore, there is no shortage of short-term credit and there is but little danger that legitimate demands of business concerns for accommodation will be refused. It is of interest to note that, since October 11, the dollar has improved sharply in the foreign exchange market. Immediately following the Treasury announce­ ment of the partial refunding of the Fourth Liberties with its implication of a stable money policy, speculators short of dollar exchange rushed to cover their positions with the result that, on October 13, sterling declined 13% cents, French fracs 241/2 points, and Dutch guilders 2% cents. The break in the exchange quotations was the widest since the American departure from the gold standard on April 20. As a result, the gold value of the dollar has risen from 64.9 cents on October 6 to 69.8 cents on October 14, and the price of gold per fine ounce has dropped from a high of $32.12 on October 3 to $29 on October 16. The prospect of a stable money policy has also operated to improve the value of high grade bonds, while depressing low grade bond prices, stock prices, and most commodity prices. Banking statistics for the Eleventh District revealed considerable expansion of bank credit during September. From August 30 to September 27, the demand deposits of the reporting member banks in the Dallas District increased from $208,000,000 to $221,000,000, the gain of 6'/c, placing the figure slightly above that of September 28, 1932. This increase represents the normal seasonal gain in deposits resulting from cotton sales supple­mented this year by government acreage payments. Yet more gratifying was the increase in total loans extended from $207,000,000 on August 30 to S214,000,000 on September 27. This increase, however, was offset by a decline of $6,000,000 in government securities held. Con­trary to the general national trend, debits to individual accounts for September increased sharply over August figures, rising from $382,000,000 to $448,000,000, a gain of 17%, and 15% above the corresponding total for September 1932. The increased deposits together with the more rapid deposit turnover suggest a somewhat greater pick up in business activity in this district than for the country as a whole. J. C. DOLLEY. Petrolet1m Modern civilization, and particularly modern indus­try, has been built upon coal and iron, upon the basis of a fuel and metal. The intensive use of these two minerals, in conjunction with the widespread use of the steam engine, first made possible the great concentration of industrial population in definitely loctaed towns and cities, a condition which more than anything else sets off our modern civilization from all those which have pre­ceded it. Consequently the large and dominant indus­trial centers of the world were already well established before petroleum rose to commercial importance. It is idle to imagine what might have been the trend of mod­ern industrial development had petroleum been devel­oped commercially prior to coal. As it is, industry and industrial populations are firmly located; and as the great oil fields of the world are rather far removed geo­graphically from such centers, oil and its many products have in the past and continue to move towards the major industrial centers. In this commercial transfer of oil towadrs the great consuming regions, crude oil is treated or refined to yield an ever-increasing variety of derivatives. Centers of the refining industry have developed at breaks in transporta­tion, such as those of the Gulf Coast, and at strategic centers of distribution of the refined products, such as those of the Eastern Seaboard, the Chicago district, or others such as Tulsa or Fort Worth, and even local ones, taking advantage of short hauls, both of the raw and the finished products. But the fact remains that the main markets for such products are the industrial and com­mercial centers, not only of the United States, but also of other parts of the world, and although large quantities of oil derivatives are used in industrial ana commercial centers near to the oil fields, yet the main markets lie in or near coal-producing lands. No coal product to date competes actively with gasoline (or motor fuel) ; the same holds true for lubricating oils, Diesel oils and kerosene, all of which are of great importance. Kerosene production still is a very important item in the oil in­dustry and the United States constitutes one of the large if not the largest market for this commodity. On the other hand, coke from coal has a field of utilization in which no product actively competes. And it is to be remembered that by the use of hydro-generation coal can be made to yield the various products otherwise obtain­able only from oil. At present, most of the coal con­sumed is utilized in its raw state. But fuel oil and coal do compete actively in raising steam under boilers; the choice between coal and fuel oil for this purpose depends upon a wide range of fac­tors. Moreover, in some cases, natural gas is actively competing with fuel oil as well as with coal, not only for industrial uses but also in domestic consumption. Although there is some competition in industrial areas between coal and fuel oil, yet the most striking competi­tion between these rival fuels is to be seen in ocean car­riers. As late as 1914, 96.6 per cent of the world's mechanically-propelled shipping used coal; and only 3.1 per cent used oil! At present the percentages are 54.6 per cent and 45.4 per cent respectively. Various factors are responsible for this rapid transformation to oil users, the turning points of which took place during the World War. Another form of increase in the use of oil as energy is seen in the growth of the internal combustion (Diesel) engines in shipping. In 1914 Lloyd's Register showed that only 0.45 of the world's aggregate tonnage was propelled by internal combustion engines; the latest available data show that motor ships now afloat have a tonnage of some 15 per cent of the world's shipping. Many other examples exist which more clearly define the high place to which oil is en­titled in the world of fuel-such as for railways in oil­producing regions, railways which use oil in order to reduce the fire hazard in traversing forests; the produc­tion of power by internal combustion engines in loca­tions where the minimum consumption of water is essen­tial; the generation of electricity in such regions to which the transport of coal would cost excessively but to which the transport oil can be made at no inordinate ex­pense. In this rivalry between coal and oil-and it is one of great importance to Texas and to the Southwest­certain attributes of oil have proven of great advantage. Some of these attributes include ease of transport, feas­ibility of economic storage, convenience in handling and use, use of automatic machinery, as well as the fact that bulk for bulk fuel oil contains greater potential energy than coal-----an important item in bunker fuel where the space thus saved means more revenue-bringing cargo. There is still another item to b estressed in even a brief perspective of the fuel situation. The rapid growth of the oil industry and of the automobile industry have been of vast importance in widening the market for coal. Automobile factories, oil field and refinery equipment plants, tire factories and airplane plants all increase the use of coal. Moreover, all machinery is absolutely de­pendent upon the lubricating oils and greases furnished by the oil industry. Cotton A COTTON POLICY FOR Extreme seriousness of THE UNITED STATES our economic plight and the failure of many half­baked schemes suggest that the time is past due for shaping policies which work with, rather than against fundamental, world-wide forces determining business trends. The purpose here is to cite fundamental facts in the cotton situation and to interpret them in terms of a broad-long-time constructive policy for the entire cotton industry. It is realized that some measures more or less time-serving may have to be used as emergency relief, but such measures must be clearly recognized as tem­porary expedients and, insofar as possible, used to promote and not retard the development of policies out­lined below. Scpecific features of this outline will be di,.cussed in greater detail in future issues of the Texas Business Revie1 v. Scope A cotton policy for the United States to be at all adequate must comprehend all branches of the cotton industry such as manufacturing, cotton growing, market­ing, ginning, and cotton seed industries. Inter-relations between the various phases of the industry are so vital that it is futile to make a policy for one branch of the industry without coordinating it with requirements of sound policies of other branches of the industry. The cotton industry is hightly regional, it is true, but at the same time a policy for the cotton industry may greatly affect the welfare of other regions not engaged in any branch of the industry. A policy to reduce cotton pro­duction to a domestic basis might, for instance, upset Corn Belt agriculture as much as that of the South because it would cut off a large part of the Corn Belt market and in the Southwest would create a serious competitor. The industrial East might also be forced to make adjustments of far reaching importance as a result of shifts of industry to lower-cost-producing areas. Finally, no policy for the cotton industry of the United States is likely to succeed which does not give due con­sideration to world aspects of the cotton industry. Thus, instead of being merely a regional problem the cotton problem is both inter-regional and international. Facts Involved Some fundamental facts which must be considered in developing a national cotton policy are: Cotton is grown 011 approximately 2,000,000 of the 6,300,000 farms in the United States. Cotton is strictly a cash crop. It enters almost entirely into commerce because the cotton farmer comes nearer selling all he produces and buying all he m.cs than any other farmer. Cotton enters more freely and widely into export than any other commodity of conse­qt;ence produced in the United States, there being about 57 per cent of the United States production exported. It i<; the most important raw material for the great textile industry which employs more people than any other manufacturing industry. The United States produces over half the world's supply of cotton, and that supply dominates world markets. Costs of marketing are im­portant factors in establishing the net price of cotton to the farmers, and volume is the biO'O'est factor in deter- co mmmg costs. Spinners are anxious to build up good will for their product, but to build up good will the spinner must have a dependable supply of the same quality at a competitive price year after year. The large constant supply of American cotton has given it a price advantage of no little consequence. Hazards in cotton production are great because of the wide variations in both yield per acre and price from year to year. Very pronounced shifts are taking place from high to low cost producing areas, especially to the big, interior, rich, le\'el, sub. humid plains such as the Gulf Southwest in the United States, the Choco in Argentine, and the Punjab in India. The United States is the best equipped of any country with experiment stations and trained personnel for main­taining and improving the quality of cotton. The fact that record supplies of raw cotton exist now with millions of people inadequately clothed indicates that a large part of the trouble lies somewhere between the farmer and the ultimate consumer. Shifts of cotton manufac­turing from high cost to low areas are even more pronounced than the shifts in the areas of cotton produc­tion, e.g., the increase of cotton manufacturing in the Orient of 140 per cent since 1914, the phenomenal shift from New England to the Southeast in the United States, and rapid increase of the business in Italy are outstanding examples of this movement. Cotton Production Policy The foregoing facts make the following objectives essential to an adequate cotton production program: (1) policy calculated to put and maintain American cotton production on a high quality base; (2) policy calculated to make profits for the farmer out of lower costs of production due to more efficient operation and better quality product rather than artificially controlled prices; (3) policy to develop more cash enterprises to fit into a production program centered around cotton to secure greater net income as well as greater security in income; (4) policy to bring about greater cooperation in the provision of services essential to an efficient cotton cotton production program; (5) policy designed to develop a cotton production program intelligent! y respon­sive to changes in demand for quality or quantity, and to shift from high cost to low cost producing areas. Cotton Marketing Policy If the facts presented and conclusions drawn so far are true, then a policy relating to instrumentalities of distribution are obvious. They must play an increasing! y important and difficult role. Stated broadly, the market­ing policy should seek: (1) to develop a marketing sys­tem which correctly and speedily interprets manufacturers demands to farmers in terms of qualities and price differentials; (2) to maintain a strong, aggressive, widely distributed, efficient marketing system to push American cotton into world markets; (31 to encourage cooperation within the cotton trade for the purpose of eliminating waste and bringing costs to the lowest point consistent with the maintenance of good service. Recognition that the most ,-ital relations between cotton growing, trade and manufacture are coi:iperatiYe and not eompetiti,·e is essential in the formation of a sound cotton policy. Cotton manufacturing is the co­partner with cotton growing, linked with it through trade and transportation senices. Cotton growers want markets and not bonuses for in the long run that means greater security and greater profit. An adequate cotton policy requires the opening up of the channels through which cotton passes to the ultimate cvnsumers. F undamentallY this means lower costs. not by reduction of standards' of liYing but b,-such ~eans a5 decentralization of industry, better plant location with reference to labor. and regional planning cou pied with lowered costs, lower tariffs, elimination of processing l many cattle and calves and double the number of sheep while the Edwards Plateau shipped slightly fewer cDttle and almost double the calves and more than twice a::; many sheep. Abnormal weather conditions during the summer which caused range conditions to deteriorate greatly, doubtless contributed materially to the changes in live­stock shipments in comparison with last year as they were shown above. According to the latest report of the U. S. Bureau of Agricultural Economics, however, rains during August and early September have improved range conditions in most areas. The Edwards Plateau is the only region that is badly in need of additional moisture, although rains in northwest Texas would improve wheat pastures. Some rain has fallen in West Texas, improving conditions somewhat, but ranges are still dry in spots. TEXAS COMMERCTAL FAILURES Sept. Aug. Sept. Third Quarter 1933 1933 1932 1933 1932 Number ----------------18 33 47 92 187 ______$845 Liabilities* $765 $799 $2,342 $4,804 _______________$110 Assets* $418 $410 $ 915 $1,977 Average Liabilities pey Failure*_____$ 47 $ 23 $ 17 $ 25 $ 26 Average Weekly Number -----------5 8 12 7 14 *Thousands omitted. NOTE : From Dun & Bradstreet, Inc. COTTON MANUFACTURING IN TEXAS Sept. Aug. Sept. 1933 1933* 1932 Bales of Cotton Used__________ 5,651 6,644 6,088 Yards of Cloth: Produced ------------------------5,436,000 6,785,000 5,488,000 Sold -----------------------------5,202,000 3,882,000 5,132,000 Unfilled Orders ------------9,138,000 7,690,000 9,003,000 Active Spindles --------------177,357 172,632 161,810 Spindle Hours ___________________56,459,000 52,356,000 52,252,000 *Revised. NOTE: Reported to the Bureau of Business Research by Texas Cotton Mi11s. OCTOBER EMPLOYMENT IN TEXAS CLASSIFIED BY CITIES No. of Workere Percentage Change Estab-from from Jioh. Oct. Sept. Oct. Sept. Oct. ment1 1933 1933 1932 1933 1932 Amarillo ----------12 402 372 334 + 8.1 + 20.4 Austin -------------30 868 850 709 + 2.1 + 22.4 Beaumont ------40 3,239 2,973 2,709 + 8.9 + 19.6 _________118 Dallas 12,067 11,390 11,182 + 5.9 + 7.9 El Paso --------------38 1,790 1,940 1,782 7.7 + 0.4 Fort Worth _______ 48 6,317 5,805 5,030 + 8.8 + 25.6 Galveston -----------26 1,355 1,113 1,299 + 21.7 + 4.3 Houston ------------85 13,753 12,400 10,775 + 10.9 + 27.6 Port Arthur -----12 7,140 6,069 4,514 + 17.6 + 58.2San Angelo _______ 8 187 189 171 1.1 + 9.4 San Antonio ______ 81 4,039 4,011 4,278 + 0.7 -5.6 Waco -------------23 1,052 1,150 954 8.5 + 10.3 Wichita Falls ____ 30 777 737 771 + 5.4 + 0.8 Miscellaneous ____398 28,590 27,394 24,930 + 4.4 + 14.7 _____________949 STATE 81,576 76,393 69,438 + 6.8 + 17.5 PETROLEUM STOCK PRICES Daily Average Production Sept. Aug. ept. 1933 1933 1932 (In Barrels) Standard Indexes of the Sept. Aug. Sept. Securities Markets 1933 1933 1932 421 Stocks Combined _____ 74.8 75.l 58.2 Panhandle ---·--------·-----·---------44,900 50',350 46,838 351 Industrials _ _ ______ 80.7 78.8 55.8 North Texas -·---------------------53,500 52,470 49,237 33 Rails ---------------47.2 49.4 34.5 West Central Texas .... _____________ 22,100 21,880 23,900 37 tilities --------------80.l 87.1 91.4 West Texas --------------------·----137,100 160,930 169,425 58,740 54,700 East Central Texas._________._____ 51,100 NOTE : From Standard Statistics Co., Inc. East Texas -------------------------527,600 596,360 373,113 BA KING STATISTICS DALLAS RESER E DISTRICT Southwest Texas -----------------48,000 51,670 54,650 Coastal Texas --------------------·---198,000 214,490 140,150 (In Millions of Dollars) STATE -----·--------·-----------------1,082,300 1,206,890 912,013 Sep t. Aug. Sept. Third Quarter UNITED STATES ----------·-2,557,300 2,742,620 2,177,463 1933 1933 1932 1933 1932 Imports ----------------------·-----·---87,179 159,314 93,679 Debits ----------448 382 390 1,384 1,258 NOTE: From American Petroleum Institute. Condition of reporting Sept. 27 Aug. 30 Se pt. 28 member banks on 1933 1933 1933 LUMBER Deposits (total) -345 333 344 Time -------124 125 125 (In Board Feet) Demand --·-221 208 219 Sept. Aug. Sept. Borrowings from 1933 1933 1932 Federal Reserve: Southern Pine Mills: Loans (total ) --214 207 238Average Weekly On Securities _ 59 60 72Production per Unit.___________226,4·9'5 250,589 169,523 All Other _____ 155 147 166Average Weekly Government Se-Shipments per Unit...__________211,094 246,777 269,590 curities Owned_ 114 120 93 Average Unfilled Orders per Unit, End of Month. ______526,105 626,062 674,752 NOTE: From Federal Reserve Board. NoTE: From Southern Pine Association. TEXAS CHARTERS CEMENT (In Thousands of DolJars Sept. Aug. Sept. Third Quarter 1933 1933 1932 1933 1932 (In Barrels) Sept. Aug. Sept. 1933 1933 1932 Capitalization __ $3,166 2,265 2,015 $8,361 7,682 Texas Mills Number -------138 141 148 413 431 Production ------------------------271,000 153,000 427,000 Classification of new Shipments ------·--·--------------------183,000 198,000 315,000 Corporations: Oil ________ 719,000 717,000 17 30 34 80 94Stocks --------------------·----------· 807,000 Public Service ___ 1 1 NoTE: From U. S. Department of Commerce, Bureau of Census. Manufacturing 14 17 20 56 68 Banking-Finance 4 12 10 23 27TEXAS RETAIL DEPARTMENT STORE SALES* Real estate·Building _ 11 10 13 36 42 Number Percentage Change in Dollar Sales Transportation 3 2 5 7 11 of Sept. Sept. Yea r-to-date Merchandising 60 41 41 137 117 Stores 1933 from 1933 from 1933 from -----­Report· Sept. Aug. Year-to-date Gen eral --------29 28 25 73 72 ing 1932 1933 1932 Foreign Permits ____ 21 20 24 66 64 Abilene ---------------------------3 + 8.8 + 47.6 + 5.6 Number capitalized at Austin -------------·--------------5 + 1.3 + 44.7 -6.4 less than ·5,000 __ 65 57 55 175 143 Beaumont ------------------·---5 -14.2 + 22.9 -8.0 umber capitalized at Corsicana ---------·-------------3 -16.2 + 78.1 -15.6 100,000 or more __ 8 5 4 19 12 Dallas -----------------·---------8 -12.1 + 3.1 -4.7 NoT£: Compiled from records of the Secretary of State. El Paso -----------------------3 -14.7 + 4.9 -12.3 Fort Worth --------------------6 -5.6 + 2.0 -4.6 COMMODITY PRICES Galveston --------------------5 -25.3 -4.7 -20.4 Houston --·----------------------·10 -2.1 + 27.2 + 2.9 Sept. Aug. Sept. 1933 1933 1932 Port Arthur ------------------·-4 + 17.2 + 9.1 + 15.3 Wholesale Prices: San Angelo -----------------·---3 + 9.1 + 49.4 + 4.9 U. S. Bureau of Labor Statis-San Antonio -------------------5 -11.3 + 18.3 -12.1 tics (1926 = 100 ) 70.8 69.5 65 .3 Tyler ----·-----------------3 8.0 + 30.5 -12.0 102.7 95.2 Wac-0 -------------------------------4 + 3.6 + 37.9 -9.8 The Annalist (1913 = 100 ) ___ { 1~:~• 74.8* Wichita Falls ----·---------------3 4.6 + 23.0 + 3.2 Dun's --------------------162.63 160.26 136.56 All Others -------··-------------20 5.5 + 47.3 -15.5 STATE __________________________ 90 Bradstreet's --------------9.05 8.99 7.28 7.8 +15.3 5.9 Farm Prices:Department Stores (Annual . S. Department of Agricul-Volume over $500,000) .... 17 5.6 + B.7 4.8 ture (1910-1914 = 100) __ 70.0· 72.0 59.0 Department Stores (Annual U. S. Bureau of Labor Statis-Volume under $500,000) 34 5.2 + 31.0 7.1 tics (1926 = 100) --------57.0 57.6 49.l Dry Goods and Apparel Retail Prices: Stores ----·------·--------------12 -20.5 + 51.2 -22.1 Food ( . S. Bureau of LaborWomen's Specialty Shops __ 13 -i9.0 + 13.5 -7.5 Statistics) (1913 = 100 ) __ 107.0 106.7 100.3 Men's Clothing Stores ·-------14 -1.5 -2.5 -2.6 -41Vj Department Stores (Fairchild's *The classification by towns includes all of the stores reporting as indicated in. Publications) (Jan.1931=100) 86.0 82.5 -3.6 the classification by types of stores. NoTE: Reported to the Bureau of Business Research by Texas Department *On gold basis based on exchange quotations for France, Switzerland, Holland, Stores. and Belgium. BUILDING PERMITS Abilene ------------------------------------------------------------------­Amarillo ----------------------------------------------------------------------------­Austin -------·····-------------------------------------------------------------------­Beaumont ---------------------------------------------------------­Brownsville ------------------------------------------------------­Brownwood -----------------------------------------------------­Cleburne ------------------------------------------------------------­Corpus Christi ----------------------------------------------------­'Corsicana ·······-···--------------------------------------------------------­Dallas ----------------------------------------­ Del Rio ---------------------------------------------------­ Denison -----------------------•-----------------­ ---­ Eastland ------------­---------------------------------------------­ El Paso ------------------------------------------------------------------­ Fort Worth ---------------------------------------------------···········-···--­ Galves ton ----------------------------------------------------------------­ Harlingen ------------------------------------------------------------------------. Houston ----------------------------------------------------------------­ Jacksonville ···----------------------------------------------------------­ Laredo ---------------------------------------------------------­ Lo ngview -----------------------------------------------------------­Lubbock -------------------------------------------------- McAllen -----------------------------------------------------------­ Marshall ----------------------------------------------­ Paris ---------------------------------------------­ Plainview ---------------------------------------------­ Port Arthur ---·-"------------------------------------------------­ Ranger ---------------------------------------------------------­ Sim Angelo --------------------------------------------------------------­ San Antonio ------------------------------------------------------------------­ Sherman ---------------------------------------------------------------------· Snyder --------------------------------------------------------------------­ Sweetwater -----------------------------------------------------­Waco ____ --------------------------------------------------------­Wichita Falls ----------------------------------------------------------­ TOTAL ------------------------------------------------­ Sept . Aug. Sept. 1933 1933 1932 4,980 8,585 4,731 4,752 22,714 20,702 61,359 95,145 102,353 19,822 12,114 15,244 1,750 3,000 3,400 3,150 1,800 500 175 2,724 395 16,561 18,360 11,129 3,025 1,465 3,100 175,439 272,573 191,231 4,27 1,345 800 7,800 5,400 1,900 400 3,585 22,295 34,135 76,921 105,351 84,628 20,558 29,636 27,106 18,216 12,200 3,564 209,078 235,655 174,737 12,620 800 76,617 2,500 6,100 39,500 39,900 60,491 1,535 11,487 54,540 2,050 825 495 4,995 5,134 11,692 7,498 4,115 7,215 1,500 17,466 15,247 4,792 1,720 9,225 5,875 47,925 92,880 62,054 7,354 5,372 4,555 350 20,500 3,325 80 75 23,967 32,923 36,407 2,655 21 ,553 7,673 800,208 1,092,753 1,040,636 OTE: Reported to the Bureau of Business Research by the Chamber of Commerce. COTTO BALA CE SHEET IN THE ITED STATES AS OF OCTOBER 1 (In Thousands of Running Bales Except as oted ) 1926-1927 ------------------·-------------------------------­ 1927-1928 1928-1929 1929-1930 1930-1931 1931-1932 -----------------------------------------------­ 1932-1933 1933-1934 •Jn 500-pound bales. SEPTEMBER SHIPME Government Carryover Import s Estimate as of Consumption Aug. 1 to Oct. I* Oct. 1• Total to Oct. 1 3,543 23 16,627 20,193 1,071 3,762 56 12,678 16,496 1,262 2,536 44 13,993 16,573 1,019 2,313 49 14,915 17,277 1,105 4,530 9 14,486 19,025 746 6,369 13 16,284 22,666 890 9,682 14 11,425 21,121 894 8,176 17 12,885 21 ,078 1,088 The cotton year begins August l. Exports to Oct. 1 1,175 942 1,063 952 1,269 769 1,156 1,400 TS OF LIVESTOCK CO VERTED TO A RA.IL-CAR BASISt Third Quarter 1933 1932 30,180 $ 8,546 62,699 67,309 295,018 266,399 72,205 47,075 5,725 9,717 6,418 9,700 2,899 6,990 46,554 36,253 13,690 35,420 715,254 648,401 4,392 8,500 18,200 7,680 400 48,824 147,042 655,4.12 321 ,353 105,134 104,757 50,586 13,839 1,377,062 493,305 15,258 82,267 4,000 11,500 131,400 275,933 95,077 59,337 3,990 880 22,677 24,054 16,988 25,078 15,000 248,500 40,012 18,837 500 26,865 14,045 218,970 305,213 17,000 42,470 2,300 21,100 4,005 9,150 79,923 80,032 31,860 89,104 4,235,577 3,540,686 Cattle Calves 1933 1932 1933 1932 Total Interstate Plus Fort WorthL .................. 1,429 1,617 643 601 Total Intrastate Omitting Fort Worth__________ 430 1,0~0 189 225 TOTAL SHIPMENTS ----------------------------1,859 2,637 832 826 TEXAS CAR,LOn SHIPME TS OF LIVESTOCK JA Cattle Calves 1933 1932 1933 1932 Total Interstate Plus Fort Wortht___________________ 23,747 23,703 5,302 4,672 Total Intrastate Omitting Fort Worth_____ _____ 5,128 5,364 1,599 1,788 TOTAL SHIPME TS ------------------------------28,875 29,067 6,901 6,460 Hogs Sheep 1933 1932 1933 1932 1,111 295 593 331 78 63 328 165 1,189 358 921 496 UARY 1 TO OCTOBER 1 Hogs Sheep 1933 1932 1933 1932 6,141 2,556 5,089 5,705 361 327 853 857 6,502 2,883 5,942 6,562 Balance Total Oct. l 2,246 17,947 2,204 14,292 2,082 14,491 2,057 15,220 2,016 17,009 1,659 21,007 2,050 19,071 2,488 18,590 Tota) 1933 1932 3,776 2,844 1,025 1,473 4,801 4,317 T otal 1933 1932 40,279 36,636 7,941 8,336 48,220 44,972 tFort Worth shipments are combined with interstate forwardings in order that the bulk of market disappearance for the month may be shown_ !Rail-Car Basis: Cattle, 30 head per car ; calves, 60 ; hogs, 80; and sheep, 250. Non:: These data are furnished the United States Bureau of Agricultural Economics by railway officials through more than 1,500 station agents, representing eTM'f livestock shipping point in the State. The data are compiled,aPy the Bureau of Business Research.