~ TEXAS But~~~~~ s REVIEW A Monthly' Summary of Business ~d)lfc 1: , •. .,-••, ~tions in Texas and the Southwest ··. ~ !J:..~ , ,..;,<'4. .~. • '<:-. '.) ~ ~ - - -~~:~ ;,f'I v.!f. S -..;'~"-~ ~ ·~/.. Bureau o f~ss Research The University of Texas Entered as second-class matter on May 7, 1928, at the postoffice at Austin, Texas, under the Act of August 24, · 1912

VOL. II AUSTIN, TEXAS, SEPTEMBER 28, 1928 No. 8

THE MONTH Business and industrial conditions in Texas during cotton and all grains declined. Shipments of fruits and August were generally favorable. Industrial activity in vegetables made an excellent showing for this season of many lines has been greater this summer than usual and the year. The livestock industry is favorable. Ranges from present indications fall expansion should be greater improved after the recent general rains and most animals than was the case last year. Weather conditions favored look good. Prices for beef and hogs are the highest in agriculture in most cases but the recent decline in the several years. Wool and mohair markets weakened a prices of grains and cotton is very discouraging to pro­ little. ducers. The livestock industry has the brightest pros­ The petroleum situation is still faced with the problem pects in many years; ranges are good and winter feed is of overproduction. Daily average flow reached a new abundant. Financial conditions are sound but the stock high level and the peak of the season for gasoline con­ market is displaying another outburst of wild speculation. sumption has possibly been passed. Crude prices were The prospects of large crops and increased industrial unchanged but gasoline dropped 14 cent a gallon. Build­ activity are struggling against the unfavorable influence ing permits made a good showing although construction of high interest rates for supremacy of the business and engineering projects let were smaller. Cement plants situation. enjoyed a good month; shipments were large and stocks Bank debits declined seasonally from the July volume were reduced. The lumber industry is working into a but were greater by 3.4 per stronger statistical position. cent than those in August a Demand for lumber is improv­ year ago. Checks in the Dis­ ing and production is expand­ trict for four weeks in August Prospects of large crops and the indications ing slowly. were $710,000,000 against of industrial expansion this fall are the most Cotton textile mills curtailed $687,000,000 in August, 1927. important influences in the business situation further during the month. Loans and discounts at mem­ at the present time. The least hopeful factor The yarn and cloth markets ber banks remained about un­ and the one which is likely to work against show very little improvement changed while borrowings at business expansion over the next six months but it looks as though bed the Dallas Federal Reserve or year, is the high interest rate coupled with rock prices have been reached Bank increased sharply. Both the credit strain. However, no serious check for the present. Unfilled time and demand deposits con­ to business is in evidence so far and changes orders were sharply lower and tinued the decline which began may occur which will relieve the credit strain cotton goods sales fell ofl'. On before depression sets in. Weather conditions earlier in the summer. the other hand spinners mar­ in the State during August were generally The stock market was gin advanced 7 points indicat­ sharply higher; many stocks favorable and most crops improved. The out­ look for the livestock industry is brighter than ing that improvement is ahead. were advanced to new highs Wholesale and retail trade de­ for all time. Trading was in it has been for many years. Bank debits are above those of a year ago but the volume of clined; sales of 84 department very large volume. Many new retail trade declined somewhat. Labor seems stores totaled $4,544,836 corporations were chartered to be well employed at high wages. and the number of commercial against $4,676,040 in August, failures was •the smallest for 1927, a decline of 2.8 per a long time. cent. Freight tonnage is increasing. Car loadings in ·the In most cases, wholesale prices were higher. Live­ southwest during August were 1.2 per cent above those stock, dairy products, fuels, metals, and petroleum show of a year ago. Shipments of grain and livestock are run­ gains against losses in the animal feed groups, hides, and ning especially heavy. Export and import trade is falling grains. The Annalist weekly index advanced from 149.8 oft this summer and coastal traffic is a little less active. during the first week of August to 152.6 for the same Agficultural conditions are fair. Favorable prospects week of September, and Bradstreet's went up from 13.19 of larger crops are partly offset by lower prices. Cotton to 13.28. Professor Fisher's index stood at 99.9 at the plants held up very well during the month; bolls are beginning of September, or the same as a month earlier opening rapidly and harvesting is . general, Prices of and the indflx of the National Bank of Commerce in 2 TEXAS BUSINESS REVIEW

New York City increased .3 of a point to 87.6. The were higher and time rates were advanced to 6% per Bureau of Labor Statistics all-commodity index based on cent against 6 ~4 per cent in July. 1926 as equal to 100 went up from 98.3 in July to 98.9 Bank debits declined seasonally from July but were in August. above those of August, 1927. Checks cashed in the Dis.. trict for the four weeks ending J\ugust 29 according to FINANCIAL the Dallas Bank amounted to $710,000,000, compared to The underlying influences in the financial situation $687 ,000,000 in August a year ago, or an increase of 3.4 continued to work toward firmness in the money market. per cent. Loans and discounts at member banks re­ It was pointed out in the July REVIEW and again in the mained about unchanged at $335,000,000. Last year in August number that the outlook was for firm money August, these loans totaled $320,000,00.0. Member banks markets and higher interest rates. There is no basis held $80,000,000 in Government securities at the end of for changing that view at this time. Fall expansion August, a decrease of $2,000,000 from the month pre­ and the movement of the large grains and cotton crops vious. This compares with $61,000,000 at the end of are expected to create a greater demand for funds over August, 1927. the next month or six weeks. Moreover, the bull move­ Demand deposits continued the decline which began ment in the stock market is not over and there is very in the late spring. · These deposits decreased from $287,- little likelihood of gold being import!!d in sufficient quan­ 000,000 in July to $283,000,000 in August. Time de­ tities to relieve the credit stran. posits also declined sharply in contrast to steady in­ Eight of the twelve Federal Reserve Banks are now on creases over the past ten or twelve months. Borrowings the 5 per cent rediscount basis, the Dallas Bank being at the Dallas Bank increased from $15,730,000 in July one of the four still on the 4 % per cent rate. Call rates on the New York Stock Exchange prevailed at 7 per cent to $20,076,000 in August. These loans were reported at to 7 % per cent during the last two weeks of August. over $23,000,000 during the second week of the month; That they were not higher is due to the fact that cor­ since that time, member banks have been liquidating part porations and individuals sent large sums into the mar­ of their borrowings. However, borrowings are likely to ket because of the attractive rates. Bankers acceptances be heavy until after the harvest period.

FINANCIAL STATISTICS FOR THE DALLAS FEDERAL RESERVE DISTRICT*

August, 1928 July, 1928 Angust, 1927 Bank Debits (four weeks) ...... $ 710,000 ,000 $ 742,000,000 $ 687 ,000,000 Government securities owned, end of month...... 80,000,000 82,000,000 61,000,000 Member bank borrowings, end of month...... 20,076,000 15,730,000 7,788,000 Demand deposits, end of month...... 283,000,000 287 ,000,000 273,000,000 Time deposits, end of month...... 128,000,000 132,000,000 111,000,000

•From the Federal Resene System.

TEXAS CHARTERS capitalized at $25,000,000, and a new Portland cement A new high record was established for August when company at $2,000,000. Thirty-six enterprises increased charters were granted to 207 corporations by the Secre­ their capitalization by $3,156,000 and permits were tary of State. This compares with 214 in July and 109 granted to 41 outside companies. in August a year ago. Most of the companies were Twelve oil companies were chartered, compared to 8 small again, many being capitalized at but $1,000. in July i and 5 public service corporations were organ­ Total capitalization of the 207 companies was $32,084,- ized, the same as in the previous month. Banking and 000 against $9,085,000 in July and $36,059,000 in financial institutions increased from 10 in July to 17 in August, 1927. One building and loan association was August, and 21 manufacturing concerns were chartered. New real estate firms decreased from 19 to 11 during the TEXAS CHART ERS month and the general list shows a loss. The large num­ ber of new manufacturing companies is an encouraging August July August 1928 1928 1927 development but the sharp increase in new oil corpora­ Number ...... 207 214 109 tions is not desirable at this time. Capitalization .... 32,084,000 9,085,000 $36,059,000 Foreign per mits . 41 45 23 COMMERCIAL FAILURES Classification of new corporations : Oi l ...... 12 8 6 ·commercial failures in Texas during August were the Public Ser vice 5 5 1 fewest for any month since May, 1920. There were but Manufacturing 21 20 18 28 bankruptcies having liabilities of $251,000. This Banking - Fi- compares with 51 insolvencies with liabilites of $775,000 nance ...... 17 10 9 Re al estate- in July and 45 failures having liabilities of $481,000 in building ...... 11 19 8 August a year ago. While a decrease in the number of General ...... 141 152 67 defaults is to be expected during the summer months, the record this year is better than usual. TEXAS BUSINES.S REVIEW 3

Practically all the failures were small concerns. Aver­ delphia, with a decline of 12.4 per cent, suffered the age liability per bankruptcy was only $9,000 against greatest loss. $16,000 in July and $11,000 in August; 1927: A. down­ ward trend in the average liability per default has been BUILDING in evidence since last May, indicating that small com­ A much better showing is indicated for the building

panies are experiencing difficulty 1in ea!rning profits. industry in Texas during August than was the case in the Moreover, competition is expected to becom~ keener. previous month. In July, permits fell to a rather low No bank failures were reported for the month. level and some observers were of the opinion that the upward trend in building permits had reached the top COMMERCI AL FAI LURES* for the time being. The August record seems to indicate that a turning point has not been reached. August, 1928 July, 1928 August, 1927 Number ______28 51 45 Liabilities ---· $ 251,000 $ 755,000 $ 481,000 BUILDING PERMITS Assets ______95,000 251,000 August, 1928 July, 1928 August, 1927 I__ •From R. G. Dun & Co. Abilene ------·$ 198,118 $ 116,450 $ 298,385 Amarillo ______100,796 153,990 2,649,461 Austin ______. 126,868 106,891 245,793 DEPARTMENT STORE SALES Beaumont ______866,605 299,E.84 610,221 Brownsville ____ 106,840 75,540 87,000 Wholesale and retail trade is not holding up as well Brownwood_____ 228,600 236,600 144,400 as was expected. The volume of purchases of summer Cleburne ______17,802 20,800 18,370 Corpus Christi 458,902 wearing apparel fell off during the latter part of August, 284,125 250,135 Corsicana ______27,030 23,150 32,665 and the expansion in fall goods trade· is not yet in evi­ Dallas ----·------750,544 877,892 770,975 dence. Sales of 84 department stores located in 26 cities Del Rio ______56,471 238,746 72,395 of the State were $4,544,836 in August, compared to Denison ------7,950 17 ,906 ------E l Paso .______214,530 $3,996,286 in July and $4,676,000 in August, 1927. 99, 748 301,021 Fort Worth______724,329 539,097 1,161,610 While the decrease from August last year is but 2.8 per Galveston ______2E.3,315 157 ,945 172,376 cent, there was an increase of 1.9 per cent in July sales Houston ______2,647,606 2,586,318 3,649,190 over those in July, 1927. Seventeen cities showed losses Laredo ______125,000 20,000 35,000 Lubbock ______384,655 against gains in the other eight. 290,475 98,054 McAllen ------·-- 38,785 23,000 70,120 Marshall ______------·------12,220 12,580 DEPARTMENT STORE SALES Paris ______28,000 1,200 10,440 Port Arthur__ __ 846,988 153,492 312,636 Percentage change from Ranger ______16,200 900 7,120 August, 1927 July, 1928 San Angelo ____ 101,405 647,175 267,545. Abilene + .7 - 6.8 San Antonio __ 1,676,100 827,471 1,236,548 Amarillo ------­ - 8.8 +12.8 Sherman ______28,250 20,740 89,117 Austin ------2.0 . + 8.0 Snyder ______21,775 20,350 ------Beaumont ______- 3.3 - .2 Sweetwater ____ 46,100 156,570 39,900 Brownwood ___ _ -18.4 + 20 .2 Temple ______277,280 86,450 393,550 Cleburne ______- 5.8 + 3.6 Tyler ______58,898 28,089 25,987 Dallas ______+ 2.4 +26.2 Waco ______106,688 121,981 579,327 El Paso ______+ 7.5 + 17.7 Wichita Falls.. 98,190 119,283 337,580 Fort Worth ______+ 1.6 + 4.4 Galveston ______- 9.7 + 1.7 Total ______$10,640,570 $ 8,364,178 $13,944,501 Houston ______- 3.8 + 3.7 Laredo ______+ 9.8 - 4.9 Marshall ______-25.6 -29.5 During the month, building permits in 32 cities of the Paris ------3.2 - 8.0 State reporting to the Bureau of Business Research were San Antonio ___ _ - 7.7 + 37.0 Tyler ______$10,640,570 compared to $8,364,178 in July and $13,- - 1.8 - 18.9 944,501 in August, 1927. One-half of the cities reported Waco ------­ -13.6 Wichita Falls .. -22.2 -36.2 gains over permits in August last year, while the others Others ------·-- - 14.0 + 4.8 recorded losses. However, the losses were larger so that the State shows a considerable decrease. Beaumont, State ______- 2.8 + 13.8 Brownwood, Corpus Christi, Lubbock, Port Arthur, and August, 1928 July, 1928 August, 1927 Sales of eighty- Tyler had large gains. On the other hand, Amarillo, Del four compar- Rio, McAllen, San Angelo, Waco, and Wichita Falls show able stores .... $ 4,544,836 $ 3,99E.,285 $ 4,676,040 losses. Engineering and construction projects let during the Further complaint of slow sales is reported but trade month were $17,000,000, according to the F. W. Dodge should be better this fall. Wholesale business is expected Corporation, a decrease of 4 per cent from those in to increase over the next few months in view of the fact August a year ago. Building costs increased slightly due that retail stocks are rather low. Retail trade in the to higher prices for a few building materials. United States was 4.9 per cent below that of a year ago An important development last month was the change according to the Federal Reserve System. The Chicago from a 5%-day week to a 5-day week for some of the district showed the greatest gain, 3.4 per cent, and Phila- building trades. The new schedule is in operation in 4 TEXAS B U~INESS REVIEW

Dallas and other cities are expected to go on the some mark in almost every session, but the 5 million record basis. This situation is bound to be reflected in higher of last June was not reached. building costs. Four of the seven issues comprising the Bureau of Business Research index advanced and 3 declined slightly. STOCK PRICES The index advanced 1 point to 247 and compares with 210 in August, 1927. The rail index advanced to 203, a The trend in the stock market during the past month new high record. This compares with 197 in July and or two has followed very closely the changes in the 190 in August a year ago. Eight of the rails comprising money market. For the first two weeks of August, the the index were higher, while one, New Orleans, Texas & market was rather quiet and quotations were slightly Mexico, declined less than 1 point. lower. However, when brokers loans were smaller than In constructing this index of rail and industrial stock prices, tllt expected and call rates fell to 6 per cent, a period of Bureau of Business Research aimed to select companies wbleh "' wild buying set in that carried many issues to new representative of conditions in Texas and other Southern Stai. and at the same time listed on the New i"rk Stock Excbanae wllln highs for all time. Practically all issues advanced and quotations are available for a number of years back. The 1-.p many of the market leaders gained 5 to 20 points in a weekly high for the years 1923-24-~ is the base equal to 100. Included in the industrial stock inde1 are Coca Cola, Freeport.Tau, day. Gulf States Steel, Tennessee Coppei •nd Chemical, Texas COlllplDJ, Trading on the New York Stock Exchange was at such Texas Pacific Coal and Oil, and Texas Gulf Sulphur. The rallrM a pace that the ticker fell hopelessly behind and final used in the index are the Atchison, Topeka & Santa Fe; CblellO, Rock Island & Pacific; Gulf, Mobile & Northern; Missouri, K&lllll transactions were recorded long after the Exchange had & Texas ; Missouri Pacific; New Orleans, Texas & Mexico; SL Loala closed. Daily transactions passed the 41h million share & Southwestern ; Southern Pacific; and Texaa Pacific.

INDEX OF RAILROAD STOCKS INDEX OF INDUSTRIAL STOCKS Aver age High 1923-24--25=100 Average High 1923-24--25=100 1928 1927 1926 1925 1924 1928 1927 1926 1925 1924 January ------183 145 136 118 83 January -----·--· ------245 167 142 108 90 February ---·------178 157 133 123 85 February ------233 174 146 112 86 March ------·------183 164 125 123 85 March ------·------239 184 136 110 83 April ------191 175 126 118 89 April ---·------255 194 135 106 79 May ------199 179 127 122 89 May ------260 199 137 116 82 June ------193 190 133 117 91 June ------243 203 146 120 79 July ------·····-- 197 192 136 119 95 July ------246 208 151 124 84 August ------203 190 140 125 97 August ------247 210 154 127 88 September ------______189 144 126 97 September ______224 153 126 88 October ------______186 138 124 97 ()ctober ------______225 154 135 87 November ------______182 139 126 111 _ ovember ______226 159 144 93 December ------______183 143 133 117 December ______238 164 139 96

SOl1J' Hl"IESTERll STOCK PR I CE I NDEX 250 t----< of Avere.ge Mont h l y Hi ghs t------t------+------4--_.,,.'--~-----t Average Month 1923- 24-25 = 100

7 0 ~~--~---.__~...... ~--~~.._~...... ~---'--~-'-~.....L~~.L....~....L.~...... J~~.J...~-L~~J....~..J..~.....Jl.-~.&...~... -- l 92 4 19 25 l 9 2 6 l 9 2 7 -1 9 2 8 PETROLEUM brought the total production for the month to a new The petroleum situation was slightly weakened during high record. It must be remembered, however, that the August. Despite the fact that production was curtailed industry has materially improved over the past three or in many of the larger fields, the increase from new wells four months and a halting period is likely to add strength coupled with the greater output from uncontrolled areas rather than weakness. TEXAS BUSINESS REVIEW 5

During August, 22,801,000 barrels were gathered com­ earlier. In this connection, it is interesting to note that pared to 22,615,000 barrels in July and 18,692,000 bar­ forward business has more than doubled since the first of rels in August, 1927. The increase is due largely to out­ the year. put from fields in West Texas, ·especially in Pecos, Demand is holding up and markets are firm. Prices Winkler, and Howard counties. Daily fiow averaged were somewhat higher but further advances for the time 735,000 in August against 729,000 in July and 603,000 being are expected to be small. in August a year ago. CEMENT THE PETROLEUM SITUATION Production of Portland cement at 519,000 barrels is the highest for that month on record. This compares (Production in Thousands of Barrels) with 561,000 barrels in July and 496,000 barrels in August, 1928 July, 1928 Aw. gust, 1927 August, 1927. While the increase over the output of last Production Total ______22,801 22,615 18,692 year is due largely to production of one more plant, most Daily average__ 735 729 603 mills were operating at a very active rate. Curtailment Wells completed __ 606 531 405 this summer by Texas mills has been less than usual. Producers ------354 306 214 Shipments were also the highest on record. During the •From the Oil Weekly. month, 623,000 barrels were loaded, against 603,000 barrels in July and 561,000 barrels in August a year ago. Field work was also much more active. A total of As a result of these heavy loadings, stocks on hand were 606 new wells was completed of which 354 were suc­ reduced to 211,000 barrels. Stocks were 314,000 barrels cessful whereas there were but 214 producers among in July and 251,000 barrels in August, 1927. the 405 new wells' drilled during August, 1927. In July, Cement markets gained considerable strength over the 531 wells were completed, 306 being successful. No fur­ month. Building activity and the immense amount of ther price changes were recorded for crude, but gasoline engineering and construction projects let during the past was reduced :IA, cent a gallon. This is the first drop in six months have developed a good demand for this prod­ gasoline quotations for several months, uct. Less complaint is heard of foreign cement in local markets. LUMBER Further improvement is reflected in the lumber indus­ THE CEMENT SITUATION* try. Over the past two or three years. this industry has been passing through a critical readjusting period. Pro­ (In Thousands of Barrales) duction was overdone and prices obtained at discourag­ August July August 1928 1928 1927 ingly low levels. Bed rock appears to have been reached Production -·------·- 519 561 496 last winter market improvement has taken place since Shipments ------623 603 561 that time. Stocks ------211 314 251

•From the United States Department of Commerce. THE LUMBER SITUATION* (In Thousands of Feet) SPINNERS MARGIN August July Per Cent 1928 1928 Change Spinners margin gained sharply during August. In the Preliminary r eport of 150 147 Mills early part of July, the yarn market was especially weak mills in the Southwest-- and cotton prices were at the season's high. As a result, Av. production ______1,469 1,444 +1.7 Av. shipments ------·--- 1,657 1,618 +2.4 spinners margin ·fell to 145, or to the lowest point in four Av. unfilled orders____ 1,366 1,321 +3.4 years. As the summer advanced, the outlook for the cotton crop was more hopeful and the yarn market Final report of 32 Texas Mills- 31 Mills showed some slight improvement. In view of the fact Av. production ______2,079 2,084 No change that a larger crop is in prospect, cotton prices have de­ Av. shipments ______2,237 2,176 +2.8 clined steadily for more than two months. At present Av stocks ------5,306 5,680 -6.4 quotations, raw cotton and yarn are in a much more Av. unfilled orders __ __ 1,463 1,433 +2.1 favorable position, relatively, than has been the case for •From the Southern Pine Association. nearly a year. During the month, the spinners margin advanced 7 During the month, 32 Texas mills reporting to the points to 154. This compares with 147 in July and 164 Southern Pine Association sawed an average of 2,079,000 in August a year ago. American middling cotton in feet per mill-practically no change from the July cut. Liverpool averaged 10.40d in August and 32-twist cotton Shipments gained 2.8 per cent or from an average of yarn in Manchester averaged 16.03d against 11.84d for 2,176,000 feet to 2,237,000 feet, while average st.ocks cotton and 17.43d for yarn in July. The percentage declined from 5,680,000 feet to 5,306,000 feet, or 6.4 decrease in the price of cotton is greater than that of per cent. Average unfilled orders at 1,463,000 feet on yarn so that the ratio advanced. This is the first sig­ August 31 were 2.1 per cent above bookings a month nificant increase in the ratio since October, 1926. Re- 6 TEXAS BUSINESS REVIEW placement margins for yarn have been so unfavorable in the yarn market should encourage higher cotton pricei over the past year that spinners have been forced to over the next three or four months. Spinners Maririn refers to the ratio between the price of Ame~ seriously curtail. Moreover, they were not buying cot­ 82-twist cotton yarn in Manchester and the Liverpool price of mlddJii ton except in small amounts to complete standing orders. American cotton. Normally, the price of 32-twist should be 603 ~ the spot price of American middling cotton. If prices chanire 10 ~ This situation was reflected in the cotton market and the ratio increases, the spinners· margin of profit la inereued Iii prices were bound to decline. The more favorable re­ thereby the demand for cotton is stren1tthened. On the other bu.. when the ratio decreases, the spinners maririn is also relatinlJ dt. placement margins coupled with the improving sentiment creaaed, and then the demand for cotton falls. e10

SPINNER S llAROIN Normal s 160

COTTON MANUFACTURING COTTON Very little improvement is indicated in the textile More favorable weather and better crop prospects have industry of the State by the August reports. Practically entirely changed the cotton situation over the past month. all mills operated on a single shift basis and many spin­ Early in the summer there was some fear of a. small dles and looms were used only part of the time. In this crop and the high rate of consumption indicated a greatly connection, it should be remembered that July and August reduced carry-over on August 1. Consumption over the are the slack months in the industry and a curtailed past three months was much smaller than expected and schedule should add strength rather than weakness to exports were greatly reduced. This situation coupled the situation. with the prospects of a larger crop, as indicated by the last Government estimate, has materially weakened the supply side of the market. Even though the indicated TEXAS COT-r:ON MANUFACTURERS REPORT supply is below that of last year at this time, yet present August July August prospects indicate ample cotton for all needs until an­ 1928 1928 1927 other crop is produced. Mills reporting ___ _ 20 21 18 Bales of cotton While the crop has deteriorated \in recent weeks, used ------7,331 5,895 9,561 the deterioration has been less than usual. Insects con· Yards of cloth- tinue to damage the crop and diseases have destroyed Produced ------6,122,000 4,323,000 8,237,000 a large percentage of plants in some districts. Harvest.. Sales ------3,649,000 4,864,000 8,000,000 Unfilled or d er s Ing is quite general over the State and the demand for (end of period) 3,477,000 7,540,000 14,181,000 pickers is growing. Prospects for a top crop are only Active spindles ____ 188,000 205,000 178,000 fair. Spindle hours ______61,876,000 56,220,000 79,256,000 A total production of 14,439,000 bales is indicated for the United States by the Crop Reporting Board in its During the month, 20 mills reporting to the Bureau of September 1 report. The Texas crop is estimated at Business Research used 7,331 bales of cotton and manu­ 5,100,000 bales against a harvest of 4,352,000 bales in factured 6,122,000 yards of goods compared to the con­ 1927. sumption of 9,561 bales and a production of 8,237,000 Consumption in August totaled 527,000 bales against yards of goods by 18 mills in August, 1927. This is a 439,000 bales in July and 633,000 bales in August, 1927. decline of 23 per cent in the rate of operation. Cotton Exports were small during the month. Though the re· goods sales were 3,649,000 against 8,000,000 yards in port of the Cotton Textile Merchants of New York is August a year ago. Unfilled orders were reduced to much more encouraging than was the case a month 3,447,000 yards, whereas bookings in August last year earlier, the yarn and cloth markets show little or no totaled 14,181,000 yards. At the present rate of pro­ improvement. duction, forward orders are equal to about two weeks' Prices were considerably lower. October New York run. This sharp decrease is rather discouraging to mill­ futures closed on August 31 at 18. 79c a pound compared men, especially so at this time when most basic industries to 20.17c on the same date in July. The market declined are expanding. almost daily during the month. TEXAS BUSINESS REVIEW

COTTON BALANCE SHEET Orleans should be about 1914 c a pound, or 150 points The indicated gain of the cotton supply in the United above present quotations (September 18). States is reflected by sharply lower prices. On Septem­ It will be noted that the supply on September 1 this ~er 1, the indicated supply was 16,217,000* bales, com­ yea\: is greater than that on August 1, the beginning of ~ared to 15,060,000 on that date in 1927 and a seven­ the cotton year. This is an unusual situation, occurring (ear average on September 1 of 14,192,000 bales. De­ only when the crop estimate is increased at the same time ~ reased consumption and small expor ts coupled with the that consumption and exports are relatively small. A .arger September 1 official estimate accounts for the si milar condition obtained in September, 1923 . 5ain over the supply of last year. During the month, 527 ,000 bales were used in the On September 1, the amount of cotton" in the United United States against 439,000 bales in July and 633,000 States was 1,157,000 bales greater tqan the supply on bates in August, 1927. Exports were but 252,000 bales, September 1 a year ago. During the past seven years, and 25,000 bales were imported. changes in supply on that date have totaled 10,861,000 The August report of the Cotton Textile Merchants , bales. In the same period, price changes deflated by the of New York City was rather cheerful after the poor Bureau of Labor Statistics wholesale price index have showing earlier in the summer. Production amounted to "'amounted to 1,565 points, or a change of 14.4 points for 302,000,000 yards and sales were 341,000,000 yards or /_each change of 100,000 bales in the supply. At this ratio, 113 per cent of output. Shipments were 7 per cent an increase of 1,157,000 bales should be accompanied by greater than production so that stocks on hand were r e­ a drop of 167 deflated points in the price. Based on the duced to 442,000,000 yards or a decrease of 4.6 per cent -supply in the United States alone, middling spots in New from the month previous. Unfilled orders totaled 289,- •This balance is obtained by a dding the sum of the Cens us carry­ 000,000 yards, a gain of 6.1 per cent for the month. over on August 1 and the imports s ince th at time to the final :;{ innings Last month a decline of 10 per cent was recorded in this ~as reported by the Census llureau, and subtracting t he exports plus consumption. Linters are not included. item.

I COTTON BALANCE SHEET AS OF SEPTEMBER 1 IN THE UNITED ST ATES (In Thousands of Running Bales) i Carry-over Imports September 1 Tot al Consumption Exports Total Balance 'I Year I August 1 since E stimate since since August 1 I August F August 1 795 12,880 1922-1923 ------3,085 15 10,575 13,675 526 269 1923-1924 2,286 3 10,788 13,077 492 240 732 12,345 I ------' 1924-1925 ------1,770 4 12,787 14,561 357 272 629 13,932 I 1925-1926 ------1,807 9 13,740 15,556 448 313 751 14,805 I 1926-1927 ------2,637 13 15,166 17,816 501 385 886 16,930 633 322 955 15,060 ! 1927-1928• -·---- 3,295 28 12,69 2 16,01 5 1928-1929 ------2,532 25 14,439 16,996 527 252 779 16,217 -- 'I •In 500-pound bales. The cotton year begins on August 1.

AGRICULTURE as supplies fell off. The general farm price index de­ clined. The agricultural situation can be called only fair. The favorable production prospects are largely offset by SEPTEMBER 1 REPORT OF TEXAS CROPS* ' lower prices, and in case farm prices continue at present • low levels the totar income to farmers is likely to be (Production in Thousands ) no larger than that of 1927. Fall sowing of wheat is Indicated 1928 Harvested 1927 . well along in many districts a nd a considerable part of Cotton, Bales ______5,100 4,352 ' the corn crop has been gathered; most of the tame hay Winter Wheat, Bushels__ __ 22,176 17,945 Corn, Bushels ______.. ______101,870 119,347 . is in the stack. Cotton deteriorated less than was ex- Oats Bushels ------35,751 42,063 pected during the month. Bolls are opening rapidly and Alfalfa Hay, Tons ______166 164 harvesting is general. Texas ginnings prior to Septem­ P otatoes, Bushels ------2,380 2,310 ber 1 were 843,000 bales, against 926,000 for the same Grapes, Tons ______~------1,352 1,260 Peaches, Bushels______1,596 800 period of 1927. Insects and disease are causing some Sweet Potatoes, Bushels __ 9,616 11,970 loss. Peanuts, Bushels______69,530 70,200 Fruit and vegetable shipments were large when al­ Apples, Barrels ______187 168 lowance is made for the season. Watermelons, onions, Rye, Bushels ------180 98 Rice, Bushels______6,092 6,279 and cantaloupes were the chief crops loaded. Markets Barley, Bushels ------2,856 3,120 for these products were better. Broomcor n, Tons ______2,000 1,320 Farm prices for the major crops were lower. Corn Tame Hay, Tons ______1,173 1,013 Pears, Bushels______316 345 and oats declined several cents a bushel and wheat is selling at the lowest price in several years. Cotton fell •From the United States Departm ent of Ag riculture. $5 a bale. A few small fruits and vegetables advanced 8 TEXAS BUSINESS REVIEW

CARLOT SHIPMENTS good so that producers are optimistic regarding the win. ter prospects. Movement of fruits and vegetables declined as is usual Demand for heifers and ewe lambs is exceptionally at this season of the year. The normal trend in ship­ good this summer and prices for these types of animals ments for Texas is downward from April to September are high, indicating the increasing tendency to enfarge or October so that a further decrease is to be expected herds. It is to be hoped that this practice is not carried before the heavy fall movement begins. During the to the point of overproduction. Fall movement of calves month, 1,603 cars of fruits and vegetables were shipped and feeders to northern states is expected to be heavier from Texas farms compared to 3,931 cars in July and this year than last. Less complaint is heard of stomach 906 cars in August, 1927. This is an increase of 76 worms and the hot dry we~ther has checked the activity per cent over August last year. of screw worms. Shipments of watermelons, onions, cantaloupes, Cattle ranges o~ September 1 were rated by the United peaches, and potatoes were much heavier than those of States Department of Agriculture at 86 per cent of nor­ a year ago. On the other hand, loadings of sweet po­ mal, compared to 87 per cent on August 1 and the con­ tatoes, tomatoes, and pears declined sharply from load­ dition of cattle was 89 per cent, or the same as a month ings of last August, and no apples nor peppers were earlier. Ranges in all districts of the State except the shipped during August this year. the southeast improved. Conditions in this district con­ tinue rather dry, although a few scattered rains fell dur­ T EXAS FRUIT AND VEGET ABLE SHIPMENTS ing August. Sheep and goat ranges improved 3 points IN AUGUST to 87 per cent of normal during the month, while the (In Carloads) August July August condition of sheep and goats remained at 89 per cent 1928 1928 1927 and 90 per cent respectively, or the same as last month. Mixed vegetables 2 1 Goat clipping is about over and the fall shearing of sheep Cabbage ______3 is well under way. Wool and mohair prices declined an­ Sweet potatoes ___ _ 23 44 other 2 cents a pound, bringing quotations about 5 cents Onions ------­ 169 299 8 Tomatoes ------­ 4 291 115 under the high of last year. · Potatoes ------­ 11 74 6 Poultry and egg markets were firm. Eggs advanced to Cucumbers ------­ 9 45c a dozen in Chicago for the better grades when re­ Watermelons ------1,196 2,946 466 Cantaloupes ______150 64 116 ceipts began to decline. Cold storage stocks are below P eaches ------­ 40 226 those of a year ago. Butter prices were also high due Pepper s ------­ 5 2 largely to seasonal factors. The turkey crop is expected Grapes ------­ 3 to be large and the young birds are doing well. Pears ------­ 5 146 Apples ------­ 2 Shipments to the Fort Worth yards were below those in Deciduous Fruits 3 July but 11 per cent greater than unloadings in August Carrots ------5 6 last year. Total receipts for the month, ac

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