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CHICAGO, M A Y 25, 1920 a n t ic i- pating possible decided the economic and social T nationala life, and and situationre-adjustment inbecause of the lack of any influences governing our the is complicated precedent by which he b u s in e s s w o rld a t t h e presen t t im e appears to be business men might be guided. There are a number of complex influences at work, each in itself potent in character. Probably the most disturbing element in the entire situation is the almost demoralized condition of our railroads, transportation being on the verge of a break down, by reason of a shortage of freight cars in the first place and a serious congestion in all leading railroad centers caused by the strike of switchmen and other rail workers. The labor situation as a whole shows small improvement, principally because of the attitude of mind of the working man. The credit supply still is restricted and the demand outstrips any previous total in the history of the world. Lastly, but by no means the least important, there is the additional complication of growing signs of a general revision of prices of all commodities, with the trend in most cases downward. C O U N TER C U R R E N T S A T W O RK IN C O M M O D IT Y P R IC E S An exception to the declining price tendency is foodstuff’s, where there appears to be, except in a few unimportant instances, no immediate prospect of im provement. An important consideration in this regard is the fact that Government supervision of the wheat crop expires by limitation with the end of M ay, follow ing which no one can forecast what will develop in an open and free trading market in wheat in face of a large shortage of that grain the world over. Prices of other foodstuff’s are in a perturbed state. A leading wholesale grocer of the district points out that for the two months preceding M ay I, there had been a general tendency in the grocery trade to curtail buying and retrench wherever possible. During that time surplus stocks were offered freely by brokers and jobbers desiring to clear shelves in anticipation of a drop, which had actually started in canned goods. In the fore part of M ay, however, there developed a com plete reversal of sentiment and prices took on new strength in an upward swing. At the present time, old stocks of canned goods and other staple groceries are practically exhausted and the outlook generally is for higher prices. The scarcity of sugar is a serious factor in the curtailment of the canning and preserving of the new fruit crop. Other living costs, however, offer great encourage ment, particularly the price of clothing and shoes. Neither wholesale nor retail dry goods merchants, it is learned, have been buying goods beyond requirements, the expectation being for a material reduction in costs, which already has begun to assume form. Silks now are decidedly lower than they were a month ago. L a dies’ ready-to-wear garments are showing a consistent downward trend and a similar movement has also de veloped in men’s wear. Explanation for this situation is not hard to find. Prices of clothing and dry goods generally had reached such heights as to be almost prohibitive and the public quite naturally curtailed purchases very materially. This caused a backing up of stocks from the retailer to the manufacturer and now there is evidence of produc tion being greater in some lines than demand, which can only result in lower prices. The same is true of shoes, where, because of a sharp decline in raw hides and skins, there has been a down- CO M PILED M A Y 22, 1920 ward readj ustment of prices. Stocks of leather are now about normal but the demand is apparently offset by the absence of any speculative buying. The foreign ex change situation played an important part in this as de clines in European rates affect the tanning industry probably more than most other lines, the tanners de pending on foreign trade for a proportionately larger part of their output. TR A N SPO R T A T IO N T IE -U P HAS W ID E S P R E A D E F F E C T One of the most vital and at the same time, one of the most disturbing factors of business today is an ex tremely unsatisfactory transportation situation, which has a two-fold effect; namely, on manufacturers and on credit. When the switchmen went on strike more than a month ago, the railroads were already in bad shape because of a shortage of cars in face of a record-breaking tonnage offered, and this condition has been aggravated by the inability of the railroads to get cars moved. Every effort has been made by the railroads them selves with remarkable results; but the immensity of the difficulties before them have proven almost insurmountable. Freight continues to pile up at prac tically all leading yards and terminals in the district, and the country as well, and the congestion has become so serious, because of its many ramifications, as to be the ob ject of great concern. There are a number of instances within the confines of the Seventh Federal Reserve Dis trict where plants have been forced to shut down com pletely owing to inability to obtain either fuel or raw materials with which to operate factories. Still other plants in large numbers are running on famine rations and face exhaustion soon unless they can get relief. The grain trade is practically demoralized because of inability to get cars to move grain from country ele vators to terminal markets. This feature alone con tains several serious aspects. Farmers cannot dispose of their grain because of the glut in country elevators and the grain dealers cannot get the cars to ship the commodity they handle, which renders it impossible to make the drafts that would release a huge volume of credit now tied up in the grain trade. Unless this sit uation rights itself soon, it is bound to cause a jump in the price of all grain and the things grain produce, in cluding live stock, milk, flour and other grain products. Cattle feeders now are losing more money on cattle that are being marketed than they have at any time in the history of the trade and in most cases they are losing fully as much as they made on feeding operations last year, according to a prominent live stock commission merchant. It is predicted in the trade that during the summer and the early fall months the number of cattle on feed and marketed will be extremely light. L A R G E C R E D IT U SE IN A G R IC U L T U R A L D IS T R IC T S The demand for money and credit continues exceed ingly heavy. The large city banks in the district for some time have bought no commercial paper, their every effort being expended in the granting of credit to necessary lines of industry and business. The supply of credit available for normal requirements is greatly re stricted by reason of the large volume outstanding in ag ricultural districts. There does not appear to be an immediate pos sibility of liquidating this so-called “ frozen credit,” much of which is traceable to the land specula tion of last year. It is true that as a rule where farm land was sold, a good part of the purchase price was represented by mortgage; but at the same time, insur ance companies and other purchasers of such securities declined to allow as much as half the supposed present value of farm lands, and this forced buyers to use their individual credit as far as possible. It is doubtful if many bankers realize to what extent this land specula tion has drawn on the credit supply, as a large number of the correspondents replying to a general credit in quiry assign the necessity for loans to other reasons. Another incentive for farm borrowing is the carrying of large stocks of corn on farms, which was made neces sary by the fact that when the grain could have been marketed, farmers considered the price too low and held their grain, whereas now because of the transpor tation tie-up, it is almost impossible to move the crop to market. The transportation situation is exerting an influence on credit in several directions, causing among other things, the tying up of a large volume in raw ma terials and manufactured goods which cannot be deliv ered to the purchaser. The extent to which farmers used their credit in buying securities representing new or more or less speculative enterprises is now indicated by the appear ance of this class of notes in the banks. It is estimated that upwards of $200,000,000 in new securities were sold in Iowa alone during the last eighteen months. The promoters in many instances disposed of notes, taken in part payment, to bankers who personally knew the makers of the notes, at a discount sufficient to make them very attractive, if not liquid investments for banking funds. These notes, as a rule, were made with the expectation of being paid out of the proceeds of future or growing crops, but inadequate transporta tion and the decline in the market value of some classes of farm products prevented this expected liquidation. Carrying of Liberty bonds and Victory notes for customer account is still a considerable burden on the banks and is requiring the use of a credit supply suffic ient, if it could be liquidated, to greatly ease the situa tion elsewhere. Purchasers and holders of government securities apparently feel that Liberty bonds and Vic tory notes are especially adapted as collateral and they accordingly are making free use of them for that pur pose. The low market value for Government securi ties now prevailing is a barrier to any considerable liquidation on the part of those who can afford to hold them. SERIO U S SH O RTA G E OF F A R M LA BO R Crop conditions now appear favorable although agricultural operations have been hampered to a very great extent by the shortage of farm labor and incle ment weather conditions. Farmers are confessedly worried over the labor supply and because of the pros pect of a very great shortage of help, acreage has been materially restricted and in many places farms are not being worked at all. A specific example of the effect of shortage of farm labor is to be found in a report recently issued by the Michigan Crop Reporting Service, based upon a com plete survey of the Michigan agricultural district. This report shows that 8.74 per cent of the farms of the state of Michigan are wholly idle this year, an area of approximately 1,668,000 acres. The total number of men and boys over 15 years of age on farms of this state is 230,000 or 82.5 acres to be worked by each man or boy. In all there are 18,232 farms idle in Michigan this year, as compared with 11,8 3 1 last year. This abandonment does not tell the whole story. A large percentage of men on farms are past 50 years of age and without help. The average size of farms is 91.5 acres and there are but 11 men and boys to each 10 farms with many of these unable to do an able-bodied man’s work. There are 30,300 vacant houses on farms, 10,000 of which have been vacated within the last year, according to the Michigan report. This condition is by no means confined to Michigan but is more or less in evidence throughout the great agricultural territory included in the Seventh Federal Reserve District. This shortage is now drawing the attention of various newspapers and agricultural organizations but it is too early to tell whether the movement thus inaugurated will have any great effect on encouraging a back-to-the-farm movement. A side light on the situation thus created is to be found in the wages paid farm labor. Because of the shortage, farm workers are in almost as strong a position as workers in industrial pursuits, and wages and hours demanded by men that are available to work on farms are such as to make their employment unprofitable on many crops at the prices prevailing in the last few years. It is evident that the production of farm crops will de cline as long as the present situation continues and as long as the cost of producing these crops follows so closely the price the farmer receives. With a stead ily decreasing supply and increasing demand, the price of food will continue to advance. Continued cool weather and excessive rainfall have hindered farm work and in at least one crop has caused a reduction in acreage. The steady rainfall during April and early M ay made the season for oats planting so late that farmers put in much less of this grain than they had planned, preferring, under the circumstances, to devote a greater acreage to corn. Winter wheat gen erally came through the winter in good condition and the prospects are for a good crop on a much reduced acreage. Spring wheat acreage also was restricted by adverse conditions but the soil conditions are good. Im provement in the weather throughout the corn belt dur ing the last few weeks has allowed farmers largely to complete their plowing and although the season is late for all grains, it is felt that the outlook is fairly promis ing. M E N T A L A T T IT U D E OF LA B O R IM P R O V IN G Manufacturers report that for the first time in many months, labor conditions, taken as a whole, show im provement, although it is very slight. The closing of some plants has diverted labor to other factories urgent ly needing men. The best indication of improvement, however, is to be found in the mental attitude of work ers, which finds reflection in a slight reduction in the shifting of labor. This, for some time past, has been the sore spot in the whole labor situation, the percent age of turnover being so large as to cause a considerable increase in production cost because of wastage, lost time and other incidental expense. The shortage of unskilled or common labor still is large in all lines of industry and wages continue at an almost prohibitive level. The April response from manufacturers in Seventh District, averaged according to the rules of t Federal Reserve Board, show the following condition : Labor supply “ normal” against “ shortages” last month and a year ago. Number of employees at the end of April, 1.4 per cent decrease from March and 4.23 per cent increase over April 1919. Percentage of total capacity employed at end of April 1920, 88.3 per cent against 96.7 per cent in March and 95.6 per cent in April 1919. Payroll payments for April showed decrease of 8.5 per cent from March but an increase of 24.5 per cent over April 1919. NEW B U IL D IN G E N T E R P R IS E S A R E R E S T R IC T E D Building operations are far from satisfactory, new enterprises now being restricted to an almost negligible number. The leading cause for this, of course, is high cost of material and labor, which has forced the aban donment of many projects that had been planned on the basis of conditions as they were six months ago. Prac tically all building mechanics now are being paid #1.25 per hour and common labor $1.00 per hour and in some instances where competition is keen, even better than these rates are obtained. The building material situa tion also is a disturbing influence. Lack of railroad transportation has created a shortage especially of sand, but also of other materials that must be transported. There is a dearth of common brick through the country due to the restrictions placed on the manufac turers during the war. Because of the heavy demand throughout 1919, manufacturers went into the winter season without any reserve stock and this spring labor disturbances handicapped any attempt at early heavy production. Even if the railroad strike could be ter minated at once, it is estimated that it would be six to nine months before the brick shortage could be relieved. The housing situation is still very unsatisfactory and in many localities where the shortage of homes is acute, plants are unable to obtain labor because it has no place to live. S L IG H T T E N D E N C Y TOW ARD T H R IF T IS S E E N A most encouraging development of the last month has been a growing tendency on the part of the general public toward thrift. Ever since the Armistice was signed, people, as has been pointed out many times, have been indulging in a wild spending orgy, buying only the highest priced articles or goods and satisfying extravagances almost to an extreme. This was per fectly natural in view of the rise on the social ladder of the laboring man, who through higher wages than he had ever known before, was able to satisfy tastes form erly controlled by a restricted income. This spending hysteria now seems to be waning, although the change is not yet pronounced. The demand still is for high priced merchandise but it is not as great as in the past year. Particularly is this true of food-stuff's. Butchers, for instance, report that they have been handling very little of the cheaper cuts of meat although a slightly increased demand for them has appeared recently. The same applies to wearing apparel, furniture and other goods, where there is more of ordinary quality sold than has been the case for many months back. The condition of Retail Trade in the Seventh Federal Reserve District as shown by April reports from representative department stores, is reduced to the following weighted averages: Net Sales—April 1920 increase over March, 1920, 37.48 per cent. Net Sales—April 1920-1919 increase 53.99 per cent. Retail Stocks—April 1920 increase over March 1920, 92.35 per cent. Retail Stocks—April 1920-1919 increase 58.04 per cent. Percentage of total stocks to average sales, January 1, 1920, to end of April 1920, 324.5 per cent. Percentage of outstanding orders to total purchases during 1919, 39.9 per cent. These “ composite numbers” are reduced by the uni form method fixed by the Federal Reserve Board, and may be accepted as indicating a slight decline in the rate of retail turnover but without any marked change in the demand for self replenishment. S E V E R A L D ISQ U IE T IN G F E A T U R E S A P P E A R Here and there from miscellaneous lines of trade and industry, slightly disturbing reports have appeared. The wool market, for instance, is very much disturbed as the result of agitation against high prices, the tight money market and the lack of switching facilities. Manufacturers are naturally unwilling to increase their liabilities under such conditions and as a result, only a small percentage of the clip has been disposed of by growers, as the season has just commenced. Should there be no relief to this situation shortly, the growers will be greatly inconvenienced as the unusually severe winter and spring has occasioned considerable loss in flocks and caused heavy feeding expenses. From the lumber trade comes a report of a decided drop in business and a weakening of lumber prices due to the slowing up in building operations. There have been quite a few cancellations of orders with furniture manufacturers in view of the fact that shipments are all made based upon price at time of shipment. Coal production in the confines of the Seventh Fed eral Reserve District during April was lower than in any of the preceding months this year and M ay output has been fully as low. Supplies of coal in the hands of dealers and consumers are lower than ordinarily carried. One of the leading coal men states that it now seems impossible, considering transportation con ditions, to produce sufficient coal to cover the needs of the country this year. Although business failures in the District are fewer in number, the liabilities involved aggregated much more than last year. During April there were 39 fail ures in the Seventh Federal Reserve District, according to R. G. Dun & Co.’s figures, which compares with 61 failures in April 1919. Liabilities involved in April failures this year aggregated $4,551,640 while in the corresponding period last year, the total was only $1,248,110 . C R E D IT M O V EM EN T L E S S A C T IV E Credit movement as indicated in the aggregate debits to individual accounts is less active than a month ago, continuing the decline started about eight weeks ago, although it is still very much more than last year. The total debits as of M ay 12 reported by 188 banks in 23 leading clearing house centers, including Chicago, was $1,088,808,000, which indicates a decline of $17,314,000 compared with the corresponding week of the previous month. It is still, however, $198,065,000 greater than in the second week of M ay a year ago. S E L E C T E D M E M B E R B A N K S T A T IS T IC S — SE V E N T H D IS T R IC T (ooo’s omitted) D ET R O IT ----- 12 Member Banks-----April 9, M ay 7, M ay 9, 1920 1920 1919 CHICAGO ----- 5° Member Banks----M ay 9, M ay 7, April 9, 1919 1920 1920 Items— Total U. S. Securities.......................... •* 74,°37 Loans— (exclusive of rediscount) Secured by U. S. war obligations.. . 68,6x4 Loans secured by stocks and bonds •339.137 All other loans and investments.. 884,331 (exclusive of rediscounts) Reserve Balance with Federal Re serve B anks................................... .136,075 Cash in v au lt......................................... • 38,834 Deposits— Net Demand..................................... .967,985 Tim e.................................................... .276,056 Government....................................... • 3,o8 i O TH ER Member Banks— M ay 7, April 9, M ay 9, 1920 1920 1919 —45 * 7 M 33 #188,864 *63,291 #59,520 #93,108 #58,831 #55,841 #88,385 70,662 67,092 11,962 13,036 9,577 16,950 16,831 14,829 869,373 870,912* 61,979 719,082 61,090 316,818 130, 902 38,629 117,407 38,739 28,130 13,2 13 13,445 24,500 12,206 970,485 272,623 851,708 164,599 41,805 199,880 224,229 1,10 5 211,639 221,834 1,100 I7L538 170,247 22,991 347,566 4,111 30,701 59,656 2 58,575 * 329,621 28,974 i 5,i6 3 247,506 116,798 1,566 58,996 332,750 282,037* 30,939 1 5,567 26,710 14,043 261,818 115,296 223,314 100,722 8,998 2,333 in c lu d e s loans secured by stocks and bonds except U. S. Securities. fFigures for M ay 9, 1919, were from 44 Chicago Banks. B U IL D IN G P E R M IT S OF S E V E N T H F E D E R A L R E S E R V E D IS T R IC T C IT IE S A P R IL 1920 No. of Estimated Cost Permits ........................... ........................... ........................... ........................... ........................... ........................... ........................... ........................... 32 52 i 95 73 * 54,454 9,060,500 361,050 "5 * 28,823 7,447,800 325,475 Per Cent Loss 86 21 11 68 90,610 46,813 112,208 83 93,330 3 26 120 73 ,3oo 128,968 124,954 234,225 42 325,855 226,464 189,900 265,820 90,445 64 69 218 34 705 91 Per Cent Gain 259 380 69 ........................... ........................... ........................... ........................... ........................... ........................... ........................... ........................... 5 15,000 114 136 60 808 29 279 98 74,373 351,871 655 , 55< > 1,798,812 92,075 430,122 83,998 802 28 188 IOI 987,999 80,475 187,965 155,620 128 U4 63 86 223 384,000 764,235 195,803 70,189 546,900 70 ........................... ........................... ........................... ........................... 67 21 63 127 188,000 188,755 19,232 62,000 360,150 104 304 918 13 5i 12,397,535 9i 2,016 2,037,430 327 96,700 4,610,391 591,900 263,699 648 171 244 109 18 ........................... i °5 ...........................2,867 ........................... 635 ........................... 354 ........................... 124 ........................... 114 722,450 552,303 236 116 370,750 30 *53 *53 96,100 293,360 108,803 166 26 1,654 181 179 82 J5 46 308,884 172,215 37 i 270,967 580,648 ........................... 153 ........................... 7i .............................2,446 ........................... 146 ........................... 87 264,910 233,700 3,288,673 500,800 140,545 ........................... 79 117 79 78 132 144,550 36,752 I ,99 I ,3 I° 44,273 444,534 • oo Illinois Aurora............................................. Chicago........................................... Decatur........................................... East St. Louis................................ Evanston........................................ Peoria.............................................. Rockford......................................... Springfield....................................... Indiana Elkhart........................................... Evansville....................................... Fort Wayne................................... Hammond....................................... Indianapolis................................... Richmond....................................... South Bend.................................... Terre Haute................................... Iowa Cedar Rapids................................. Des Moines.................................... Dubuque......................................... Mason C ity .................................... Sioux C ity ....................................... Michigan Bay C ity ......................................... Detroit............................................ F lin t................................................. Grand Rapids................................ Jackson............................................ Kalamazoo..................................... Lansing........................................... Saginaw........................................... Wisconsin Kenosha.......................................... Madison.......................................... Milwaukee...................................... Sheboygan...................................... Superior.......................................... A P R IL 1919 No. of Estimated Permits Cost 7 433 14 532 65 13 1 • •• 68 B U IL D IN G S T A T IS T IC S FO R T H E M ONTH OF A P R IL , 1920 SE V E N T H F E D E R A L R E S E R V E D IS T R IC T (Covering Illinois, Indiana, Iowa, Michigan, Wisconsin and portions of Missouri and Eastern Kansas.) Class Business Buildings....................................................... Educational Buildings................................................ Hospitals and Institutions......................................... Industrial Buildings.................................................... Military and Naval Buildings................................... Public Buildings........................................................... Religious and Memorial Buildings........................... Residential Buildings.................................................. Social and Recreational Buildings........................... CO N T EM PLA T ED P R O JE C T S No. of Projects Valuation ? ! 7>735,400 ........................... 439 20,350,600 ........................... i 39 945,000 ........................... 14 30,178,000 2, 555,000 618,000 ........................... 4.17 26,622,500 3,270,500 '56 ........................... 37,653,800 ........................... 1,413 ........................... 82 9,944,000 T o tal...................................................................... ........................... 2,853 $149,872,800 CO N TRACTS AW A RD ED No. of New Floor Space Valuation Sq. ft. Projects $18,887,400 345 3 ,473,7° ° 1,039,200 5,478,400 73 8 90,200 465,000 196 4 ,777,500 23 ,09 L 5°o 200,000 I 141,300 24,100 141,000 7 17,621,600 1,706,100 179,200 3° 22 , 509,100 1,17 2 5,550,200 48 542,400 4 ,333,00° 2,140 $94,523,100 CO N TRACTS AW ARD ED (January 1 to M ay 1) 1920..............................................$323,756,070 19 19 ............................................. 190,504,000 19 18 ............................................. 96,557,000 19 17 ............................................. 177,340,000 19 16 ................................................ $113,366,000 19 15 ................................................ 65,582,600 19 14 ................................................ 61,821,000 1 9 1 3 ................................................ 59,492,000 19 12 .................................................$35,842,000 19 ” ................................................ 60,894,313 19 10 ................................................ 67,295,304 A L L D IST R IC T S (States north of the Ohio and east of the Missouri rivers.) C O N T EM PLA T ED P R O JE C T S No. of Valuation Projects 1,768 $70,442,700 419 49,274,800 69 6,741,500 948 77 ,45o>100 Class Business Buildings.......................... Educational Buildings................... Hospitals and Institutions............ Industrial Buildings....................... Military and N aval Buildings . .. Public Buildings.............................. Public Works and Public Utilities. Religious and Memorial Buildings Residential Buildings..................... . Social and Recreational Buldings. Miscellaneous................................... 41 9° 1,043 4 ,1 3 3 , 9 0 0 5 2,648,600 59,514,900 i i ,355,o o o 139,170,800 24,298,300 22,000 9,777 $445,052,600 207 4,892 295 T o tal.......................................... CO N TRACTS AW A RD ED No. of New Floor Space Valuation Projects Sq. ft. 1,287 $57,114,900 12,267,600 198 3,287,600 20,285,500 823,900 4,226,800 49 698 14,850,600 62,180,900 222,300 912,100 !7 135,700 1,394,300 43 660 65 ,497, 6 0 0 401,700 3,950,100 79 20,712,900 103,742,700 3,793 146 1,853,900 14,702,300 6,970 $33 4,007,200 CO N TRACTS AW ARD ED (January 1 to M ay 1) 1920........................................... $1,114,415,200 19 16 .............................................. $324,665,500 19 15 .............................................. 244,095,100 1 9 19 ........................................ 464,407,000 19 14 .............................................. 228,710,000 19 18 .......................................... 543,021,000 1 9 1 7 .......................................... 467,298,000 1 9 1 3 .............................................. 285,388,000 (Building statistics compiled by the F. W. Dodge Company) 19 12 .............................................. $232,249,500 19 ” .............................................. 254,275,813 19 10 .............................................. 256,838,804 R E C E IP T S AN D SH IP M E N T S OF IM P O R T A N T C O M M O D ITIES A T CHICAGO (ooo’s omitted) R E C E IP T S Products April 1920 Flour, b arre ls................................... Wheat, bushels................................. Corn, bushels................................... Oats, bushels................................... Cured Meats, pounds..................... Fresh Meats, pounds....................... Lard, pounds..................................... Cheese, pounds................................. Butter, pounds................................. Eggs, cases......................................... Potatoes, bushels............................. Hides, pounds................................... Lumber, thousand feet................... .................... ..................... 323 769 ..................... 2,108 .....................3 L 3 82 ..................... 8,620 ..................... ..................... 74 ! 858 ..................... 124 1919 908 1,117 6,140 5,537 14,788 99, 55° 18,943 16,300 19,723 i ,357 1,690 18,530 144 March 19 19 1920 648 785 1,231 977 8,449 3,824 5,568 3 ,7 i 9 6,461 2 i ,533 71,844 90,027 9,188 17,3 ” 15,822 15,394 20,638 15,946 460 377 1,098 1,663 15,040 19,510 264 124 SH IPM EN T S April 1920 218 1,080 739 1,740 23,922 105,054 10,249 3,438 10,899 205 193 7,219 51 1919 498 4,710 ! ,7i 5 5,*3 8 103,163 152,894 39,808 9,096 23,019 43 6 838 ' 25,243 59 March 1920 1919 686 44° 1,760 i ,375 2,804 !,572 4,679 5,403 106,701 1 59,756 203,092 1 58,551 60,206 46,469 21,040 8,775 20,090 26,371 223 267 692 378 20,927 i 3 ,789 122 46 D ISCO UNT AND IN T E R E S T R A T E S The open market range of discount and interest rat^s prevailing in Chicago during the thirty-day period ending M ay 15, 1920, together with a comparison of rates during the thirty-day periods ending April 15, 1920, and M ay 15, 1919, follows: M A Y 1920 High Low 1. Rates of discount charged by banks to customers for prime commercial paper such as is now eligible under the Federal Reserve Act: a. Running 30, 60 and 90 d avs........................... b. Running 4 to 6 months................................... 2. Rates for prime commercial paper purchased in the open market: a. Running 30 to 90 days..................................... b. Running 4 to 6 months................................... 3. Rates charged on loans to other banks—secured by bills payable........................................................... 4. Rates for bankers’ acceptances of 60 to 90 days maturities: a. Endorsed............................................................. b. Unendorsed........................................................ 5. Rates for demand paper secured by prime stock exchange collateral or other current collateral. . . 6. Rates for time paper secured by collateral men tioned in No. 5: a. Running 3 months............................................ b. Running 3 to 6 months................................... 7. Rates (when paper is current in city) for: a. Catde loans........................................................ b. Commodity paper secured by warehouse receipts, etc.......................................................... 8. Rates for ordinary commercial loans running 30, 60 and 90 days, (not including loans to enable purchase of bonds) secured bv: a. Liberty bonds.................................................... b. Certificates of indebtedness............................ A P R IL 1920 Customary High M A Y 1919 Low Customary High Low Customary 7 7 6 6 6>4 @ 7 6 6 5 5 5Y ® 6 5/4 ® 6 7 7 6 6 7 7 i Ya 7 7 6 6 6J 4 @ 7 lY * ey @7 sY sY 5 5 5>4 5>4 7 6K ey2 @ i 7 6 6Y @ 7 6 sY sY 6Y 6/4 5 7/8 5 7/8 5 7/8 @ & Y 5 7/8 @ e Y 6 6 5 7/8 5 7/8 @ 6 5 7/8 5 7/8 @ 6 \Y aY A 3/j 6 43A 6 4 3 / 16 4 3 / 16 7 6 7 7 ey sy @7 6 sY 5/4 @ 6 7 7 ey 6Y 7 7 7 7 ey 6Y ey® y (>y @ 7 6 6 5Y sY 5K 5/4 7 ey 7 7 6Y ey@ j 6 5Y 5J 4 7 ey 7 7 ey2 6y@7 6 sY 5/4 7 6 ey ey® 6y @ 7 6 7 ey 6 5 5^ 6 6 5 5 5>4 5>4 6J 4 @ 7 (> y @ i lY 7 6 ey @7 C O M PA R A T IV E L IV E STO CK S T A T IST IC S Receipts of live stock at Chicago for the four weeks ending M ay 8, compare as follows: Year 1920 (4 weeks).............................................. ........................................... 1919 (4 weeks).............................................. ........................................... 223-877 218,517 Decrease................................................ ........................................... *Increase 5» o* 36 Cattle Calves 76,076 8i ,3I3 Hogs 526,864 633,468 Sheep 226,343 289,506 5,237 106,604 63,163 Receipts of live stock at the principal markets during April, and during the first four months of 1920 compared with the corresponding periods of the previous year, show the following changes: 1920 A p ril.................................................. Four months.................................. Cattle 9 per cent Decrease 10 per cent Decrease Calves 9 per cent Decrease xi per cent Increase Sheep 3 per cent Decrease 1 per cent Increase Receipts of hogs during April, 1920, aggregated 1,270,871 head against 1,765,008 in April, 1919. The average prices compared as follows per hundredweight: CATTLE April, 1920............... April, 1 9 19 ............... Choice | i 4-85 20.02 Common $12.65 I 5-83 Sheep $14 .16 M -33 Lambs $18.57 18.02 Four months— 1920 Four months— 1919 16.50 19.99 I 3 -I 9 15.94 13.08 12.52 I 9-I7 17.67 Cash lard in x^pril, 1920, ranged from $18.75 to $20-°5 cwt. compared with $28 .6 7^ to $32.87^2 in April, 1919. Cash ribs in April, 1920,ranged from $17.50 to $18.75 compared with $26.50 to $ 2 8 .8 7 ^ in April, 1919. HOW P R IC E S A F F E C T T H E F A R M E R these curves ran along with only slight divergences from the axis at 100 showing a general balance between farm income and farm outgo. From 19 16 to 1919 the curve of income has been far above the curve of outgo showing that produce prices have afforded the farmer a generous profit. But the trend of the income curve apparently has reached the peak and is tending to fall, whereas the curve of outgo, representing the cost of farm essentials, is strongly ascendant. The “ Monthly Crop Reporter” concludes “ That in 1920 prices of crops and live stock will probably be relatively lower than the prices of articles which farmers must buy.” We reproduce the “ Trend of Prices” chart herewith. Interesting figures on the farmer’s income and outg^ are contained in the March, 1920 issue of the “ Monthly Crop Reporter” of the Department of Agriculture. These figures are in the form of a graph showing the trend of prices of crops and live stock. For the period 1909 to 1919 inclusive of both years curves are plotted showing (1) composite numbers em bracing the prices realized by the farmers of America for their crops and live stock and (2) the actual prices paid by the farmer for all the supplies, machinery and materials of every kind necessary for the conduct of farming operation. Until the end of the year 1914 E S T IM A T E D F A R M V A L U E OF IM P O R T A N T PRO D U C TS AS OF M ARCH 15.— Products Hogs, 100 pounds................... Beef Cattle, 100 pounds... Veal Calves, 100 pounds. . . . Sheep, 100 pounds.................. Lambs, 100 pounds................ Milk Cows, per head............. Horses, per head.................... Apples, per bushel.................. Apples, per barrel................... Beans, (dry) bushel................ Clover seed, bushel as sold. . Clover seed, bushel as bought Timothy seed as sold............. Timothy seed as bought... ILLIN O IS 1919 1920 $17.00 > 13-95 10.00 12.10 13.90 *3 -9° 10.18 10.10 15.20 14.90 101.00 103.90 131.00 132.00 3 -00 3 -ID 8.90 9.00 6.90 6.10 32.40 22.40 24.70 35.60 6.10 4 -9° 5.40 6.90 IN D IA N A 1919 1920 $14.40 $17.60 9.60 11.40 14.50 13.80 8.70 9 -3° 14.90 14.40 90.50 93 -3° 130.00 129.00 3.10 2.80 9.10 8.00 5.10 6.20 21.50 32.30 24.00 35 -3° 4.70 6.10 6.85 5.60 IOWA 1920 1919 $17.40 $13.90 10.80 13-5° 12.90 13.10 11.40 9.70 15.70 15-5° 100.00 103.50 130.00 144.00 3.60 3.20 10.50 9.00 6.00 5.90 32.20 23.90 25.50 35.20 4.60 5.60 5.00 6.10 M IC H IG A N 1919 1920 $16.40 $14.00 9.80 9.00 15.00 15.70 10.10 9.50 15.10 15.20 84.60 98.40 136.00 142.00 1.70 2.70 5.40 8.10 4.10 3-75 23.10 32-3° 35.80 25.90 4.90 6.20 7.20 5.70 W ISCONSIN 1919 1920 $13.90 $16.70 8.60 8.80 14.00 14.30 10.70 10.00 15.00 15.00 92.50 109.30 1 44.00 144.00 2.00 3.00 6.50 8.50 4.10 4.20 23.60 30.80 26.40 34 -7° 5.80 4.90 5.60 6.90 AS OF A P R IL 1.— Wheat, bushels ................................ Corn, bushels..................................... Oats, bushels...................................... Barley, bushels.................................. Rye, bushels....................................... Buckwheat, bushels....................... Flax seed, bushels........................... Potatoes, bushels............................ Sweet Potatoes, bushels................ Hay (loose) per ton.......................... Butter, pounds.................................. Eggs, per dozen................................. Chickens, per pound........................ ............ 2-35 ............ 1-54 ....................... 89 ............ 1-42 ............ 1 .60 3 -6° ............ 2.33 ............ 25.50 ....................... 56 ....................... 38 ....................... 27 2.23 1.42 .61 1.03 1.46 i -35 1.50 20.40 •47 •34 •238 2.31 i -55 .90 1.47 1.54 1.47 2.19 x.41 .62 1.08 1.41 1.47 3 -5 i 3-76 1.27 2.50 20.80 2.14 1.41 .82 i -33 i -53 2.00 4.78 3-5 i 3 -5° 20.80 •53 •44 •34 •57 •37 26.20 .38 .278 .241 •234 2.09 1.40 .58 .86 i -35 1.58 3.12 1.27 2.90 19.50 .49 •34 .209 2.22 1.51 .91 1.44 1.60 2.10 1.28 2.36 1.60 .90 1.32 i -53 1.63 2.21 2.67 •83 2.86 .80 26.30 22.20 .50 23.90 •63 20.20 .56 •57 .40 .265 1.54 •63 •97 1.47 1-34 •37 •239 *•73 4-33 •39 .247 •59 .98 1.47 1.18 •34 .224
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