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THE MONHLY BULLETIN
Covering Conditions in the Tenth Federal Reserve District
FEDERAL l{ESERVE BANK OF KANSAS CITY
For the Information of Member Ranks and Business Interests of this District
ASA E. RAMSAY, Chafrman Board D,rutors
and Federal R,serve Agent
C. K. BOARDMAN, Assistant Federal Reserve Agent
and Secretary
a-------------------------------------------------0
Vol. S
KANSAS CITY, MISSOURI, SEPTEMBER 25, 1920
EPORTS to the end of the eighth month, covering the various agenci s which make for
busine s in thi, di tri t, <lisclo e g cl pro ,._
r s l ward th usual brisk fall activity.
'l' th
, · plio11ally larg • er ps grown this year,
previously r 'P rtcd lo th Monthly Bull tin ancl which
~hould form the ba, is for solid busin s and financial
onditions, the Gov rnment's September forecast for
the district added 65,507,000 more bu hels of corn an<l
4,016,000 more bushels of oats to August totals. This
hrought production of corn in the di trict to 548,697,000 bushels or 17.3% of the Nation's total, oats to
202,799,000 bushels or 14% of the Nation's total, while
the 260,723,000 bushels of wheat credited to the Tenth
Federal Reserve District this year represents 33.8%
of the entire crop grown in the United States.
Crop marketings, somewhat reduced from the abnormally heavy marketing at this time last year,
were ufficient in August for trade requir mcnts, while
at the same time the proceeds exerted an influence
for the betterment of the entire situation. The railroads, according to all reports, put larger efficiency
into the movement of crops without adding materially
to their equipment, and although the transportation
service is far from adequate, there is less complaint
of car shortage, delayed freight and congestion at
terminals, while a freer movement of all freights is
reported.
Wholesale reports would- indicate that produ ti n
has about caught up with demand and that there i:
less difficulty in obtaining upplies, yet uncertainty
of prices is restricting trade to immediate requir ··ments. Retail merchant., feeling the beneficent eff ccts of new crop money, are reporting in reased buying activity with medium-priced goods generally pr ferred, and their reports reflect confidence in a brig-ht
trade outlook for the fall and winter.
The August petroleum output was the second largest of any month this year, and development activ ities arc going on with a rush so as to maintain high
production. The coal situation cleared perceptibly
during Augu, t, with miners at work at increased
wag-es, and excellent pro-.p cts for a good s11pply of
coal for th winter. Zinc and I ad ore mining ~howccl
improvem nt with hipm nt incr as d 20% arnl 12%
over the previous month and at better prices. Metal
mining in Colorado showed little change.
Building permits issued in August were the lowe, t
No. 9
f the year, indicatin~ that high wages, high priced
materiaL, transportation difficulties and the financial
situation were curtailing activities.
'[ h new fr ight rate , ffectiv · ngust 26, ar r
port ·cl a, w rhng hanlshiJ s 11 many of the i11dtt"l nes, parti ·ularl) 011 sliipnwnts of coal, :-.alt, nrcs, 1nm
I, -r and building mat ·rials. '!'he ff ·ct of the new
rat s, a, r ported, is t increase pri ·es t • 11~u111 rs
and to prolong price a<ljustmcnts.
While the mov ment of live stock to the markets
was in reduced volume a compared with movements
in August last year, the Augu t upply of meat animals was about norma_l. Many warnings are uttered
that the future meat upply of the country is threat~ned by the premature slaughtering of cattle and
calves. Still, there is much encouragement in a broader movement of breeding stock from the markets to
the country and a concerted planning of bankers and
bu iness men t aid farmers and growers with long
time 1 ans in hnilcling up their h rds and flocks.
FINANCIAL.
The demand for money and credit continues trong
in thi, chiefly agricultural district and rates are holding firm and unchanged. Crop marketings are influencing liquidation of loans to a con iderable extent,
but on account of the reduced volume at which grain
is moYing as compared with last Autumn, together
with new and insistent requirements that are constantly arising, the lightening of the tension on the finances
of this di trict is slow.
The Federal Reserve Bank' statement of Septemher 17 showed a decrease of $3,799,059.33 in di counted
hill. secured by Govcrnm nt war obligations, and an
increase of $8,981,048.18 in all other bills disc tmted,
ai;.; compar d with the e. hibit of eptember 10. Th
ratio of total reserves to net depo its and Federal ReserYc notes liabilities on September 17 was 41.9%,
v,,rhich compares with 40.7% one week previous.
Oklahoma City Branch.-A branch of the Federal
Resen·e Bank in District No. 10 was opened for busine 'S rm ugust 2 at Oklahoma City with Ur. C. E.
J aniel as manager. Thi. hranch was authorized by
the F dercl.1 Res rve Board in January of thi. year.
The dir ct r, ar Mr. \Vitliam Mee, Mr. E. r . Thurmond, fr
. E. I ani 1, fr. Dorset Carter and Mr.
P. C. Dings.
Showing of Member Banks.-W eekly tatements, as
of September 3, of eighty three -elected member banks
2
THE MONTHLY BULLETIN
in the Tenth Federal Reserve District, combined, show
a decrease of $1,088,000 in the total of their loans as
compared with the showing made in statements as of
August 6. In the same time these member bank increased their reserv'! with the Federal Re erve Bank
$3,260,000 and added $18,174,000 to their demand deposits on which re"erve is computed and $833,000 to
their time deposits. A summary of the statements
follows:
Sept. 3, 1920 Aug. 6, 1920
Total U. S. Securities owned ...... $ 53,355,000 $ 53,692,000
Loans ( exclusive of discounts) secured by U. S. War obligations. 20,123,000
19,661,000
Loans secured by stocks and bonds
other than U. S. Securities. . . . . 80,288,000
80,198,000
451,764,000
All other loans and investm nts ... 450,124,000
Reserve Balance with F. R. Bank.. 47,598,000
44,338,000
Net demand deposits on which reserve is computed .............. 426,849,000
408,675,000
Time deposits . . . . . . . . . . . . . . . . . . 98,661,000
97,828,000
Clearings.-Twenty-nine cities of this district arc
r pr sented in th clearing hon report for August,
their tran ' actions aggregating $1,812,271,445. This i:-lc. s than 1% larger than th
1 aring· r p rtcd for
July and also for Jun this year. Compar d with Au gust, 1919, howev r, th r is a de rcase of 3.5%, thi s
per ntag being computed on the return from tw 11
ty-five clearing hou e. reporting for Augu t thi ~ year
and last. The report follows :
Aug., 1920
Aug., 1919
Kansas City, Mo...... $ 976,568,885 $ 1,113,475,156
Omaha, Neb. . . . . . . .
226,158,102
268,731,635
Denver, Colo. . . . ... .
152,301,592
137,031,366
Okla. City, Okla..... .
127,341,505
60,005,823
Wichita, Kans. . . . .. .
66,244,771
65,224,884
St. Joseph, Mo ...... .
62,357,665
74,397,120
Tulsa, Okla. . . . .... .
54,861,654
42,990,670
Lincoln, Neb. . . . ... .
22,681,605
24,010,867
Kansas City, Kans ... .
22,328,518
3,064,007
Muskogee, Okla. . . ..
18,005,644
12,866,517
Topeka, Kans. . . . .. .
13,901,339
14,651,402
Cheyenee, Wyo. . ... .
7,395,132
Joplin, Mo ......... .
7,286,657
6,521,521
Grand Island, Neb .. . .
6,499,665
Okmulgee, Okla. . . . .
5,514,876
3,954,327
Colorado Spgs., Colo ..
5,231,308
4-,987,774Bartlesville, Okla. . ..
4,318,184
4,074,377
Pueblo, Colo. . . . ....
4,025,750
3,012,631
Atchison, Kans. . . . ..
3,876,389
3,032,121
Hastings, Neb. . . . .. .
3,712,139
3,448,783
Fremont, N eh. . . . .. .
3,603,881
4,230,266
Guthrie, Okla. . .... .
3,411,119
2,091,938
Pittsburg, Kans. . . .. .
2,555,251
2,328,520
McAlester, Okla. . . . .
2,352,000
Miami, Okla. . ...... .
2,133,8nG
Parson , Kans. . .... .
2,019,836
l,955,35 1
Lawrence, Kans ..... .
1,816,0M
1,91::3, SR
Lawton, Okla. . . .... .
1,601,463
1,125,128
Emporia, Kans.
1,166,716
744,471
Pct.
Change
-]2.2
-15.8
11.1
112.2
1.6
-14.8
27.6
- 6.5
628. 7
39.2
5.1
11.7
39.4
4.8
6.2
33.6
27.8
7.6
-14.8
63.0
9.8
:t3
-
5.1
42.0
56.6
A!-lgust totals ....... $ 1,812,271,445 $ 1,859,870,528 - 3.5
Eight months ....... 11,751,617,647 10,264,775,418
14.4
. An analysis of the reports pr ·ented in the foregomg ta_ble lead to the conclu ion that the smaller grain
an_d hvc stock movements in. Augu t, as compared
with a year .ago, had som thmg to do with the decrea ed clearmg at the big Missouri river market cen
ter .
. Commercial Failures.- Elev 11 in olv 11 i s involving $85,735 a·. the t ta! liahiliti s is th re or<l f r
ugust, 1920, m the Tenth F deral Reserve District
reported by Dun's. This report compare with 17
failures and $141,370 of liabilitie in August, 1919. For
the first eight months of this year the failures totaled
187 and the liabilities $2,617,616, against 169 failures
and $3,050,495 liabilities in the first eight months of
last year.
Collections.-Payment , which for the
ummer
months exhibited a tendency to decline from the high
levels of previous ten or twelve months, were reported a improving under stimulus of ·rop marketing:--.
Merchants in their August reports, as a rul , indicated
that collections were fair or go cl, poor collection. be·•
ing- rep rted only in pots where affected by local
condition . Still, it was noted that on th whole, col ]e tions w re n t as good as at this time la. t year,
and that there wa a larger percentage of sl w accounts. Thi tenden y wa regarded a due to a large
extent to the . lower movement of crops to markets,
and also to a determination of more farmers than
usual to hold their pr du ts f r more favorabl
ric "·
and gen rally was uot n g.ir led h , mcrch;111t s as ;111 y1hing serious.
MERCANTILE.
'ale f m r hand is' l> _v whol 'sal rs, to retai lers, ;ind
by retailers to onsumer:, mad som improv m nt 111
August over July and were considnably larg r in \'olumc than in Angu t a ) ear ago, ace rding- to the reports to the Monthly Bulletin. Merchants in this part
of the country, as a rule, regard the outlook for late
fall and winter trade as exceptionally good, but on
account of uncertainty of prices of merchandise they
are exerci ing an unusual degree of caution in placing orders for goods.
Wholesale.-In the whole ·ale trad the lin s whi h
in Augu t . hawed particular activity were furniture
an~l hardware. though dry goods an;! millin ry rnadt·
gam.., ov r July and August of last
ar, and sales oi
drugs and groccrie showed <lcclincs from th previo11 -;
mc.mth sales but were better than a
ar ago. No con.
sp1c uou "' chang were noted in other linec;.
sum
mary of the reports of wholcsal rs shows the percentage of increase or decrease in sales in August over
sale in July of this year and August of last year.
August Sales
compared with
July, 1920
Dry Goods . . . . . . . . . . . . . .
5.0%
3.4
Millinery . . . . . . . . . . . . . . . .
Drugs . . . . . . . . . . . . . . . . . . - :J.4
Groc rics . . .. .. .. . . . .. .. - 1'1.9
Furniture . . . . . . . . . . . . . . .
:34.1
Hardware . . . . . . . . . . . . . . .
10.0
August Sales
compared with
August, 1919
10.0%
9.4
29.:3
~.'1
27.2
2 .6
11 r port:,
cept thos on hanhvar , i11<licatc 1111 ~ill d orde:s a r not large because of production catchmg up ,~1th demand. In hardware wholc~alers arr
f!n<ling- diffi ulty in obtaining ~tapl article~, an<l particularly steel, to meet the demand of customer . The,·
arc supplying what they can obtain and permitting·
customers to seek el. ewhere for the balance.
'J'her is a deadlocl· between manufacturers of textile: and wholesalers of dry goods as regards pmhas 'S f~1r . the futnr '.
s 0011 a a pri c ba is i •
reached it_ ts ·p ct .d that whol •sal dry good - m 1 •
chants will plac _ord rs _freely. They report that
th y ar not off ermg sprmg goods to retailers for
THE MONTHLY BULLETIN
future orders. Strained condition of credit, they report, also keeps them from placing future orders with
manufacturers.
Activity in the wholesale furniture trade is attributed to increased supplies, enabling retailers to buy according to their needs, although th re is no disposition on the part of retailers to stock up heavily. Letters are now received by wholesalers asking for business, whereas at this time last year when furniture
stocks were low and almost depleted, manufacturers
were oversold. The uncertainty of prices is aid by
wholesalers to explain the cause of dullness in the
grocery trade in August.
Retail.-The reports of department stores in the
cities of this district reflect the trend of r tail trade
during the month of August. A summary of the reports of twelve department tores follows:
Percentage of net sales during August, 1920, compared with net sales during same month last
year .................................... Inc. 10.1%
Percentage of net sal s this s0ason from July 1 to
August 31, 1920, compar <l with net sal0s <luring same p riod last year .................. Inc. 14.4 %
Prrccntago of ·tocks at clos of August, 1!)20, compar •d with toclrn at clos of same month la. t
y ar . . . ............................ ... .. Inc. 39.2%
l' rcentage of stocks at close of August, 1920, compared with stocks at close of July, 1920 ..... Inc. 10.0%
Percentage average stocks at close of each month this
season (commencing with Jan., 1920) to average
monthly net sales during same period. . . . . . . . . . 334.0%
Percentage outstanding orders (cost) at close of August, 1920, to total purchases (cost) during calendar year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9.2%
In addition to the showing made by the department
stores are the reports of a number of retail dry goods,
clothing, millinery, shoes and general merchandise
houses. Except where local conditions interfered, a;:;
the Denver street car tieup, these reports show a
normal retail trade in August, with improvem nt over
July and indication of the disappearance of summer
~eason dullness. It is r ·ported in some quarters that
the "trade" is asking for cheaper gooc.ls and there is
a noticeable falling off in the demand for h igli ·r priced
merchandise.
AGRICULTURE.
Moderate to heavy rains accompanied l>y much
cloudiness and low temperatures through Augn t and
the first half of September served to continue the
growth of vegetation two to four weeks later than
usual and added to the enormous field crops previously forecast. Such conditions, however. rf'tarded farm
work, particularly the threshing of the 1920 crop of
wheat and the pr paration of seed h ds for planting
this fall. The weather was also unsuited to th proper
maturing of corn, . orglmms and oth r crnps, and the
late reports say that two or three weeks o normal
weather with plenty of un hine are needed to make
this year's crop safe from frost.
Corn made good progress through August and the
high percent of condition reported at the beginning
of the month was more than maintained, promi ing a
yield above the average for the ten years preceding.
The condition of corn S ptember 1, a. ann un d b~
the Bureau of Crop h timat s, U. S. Department f
Agriculture, was: in Oklahoma 93%, 1 ausas 81 %,
Mis ouri 84%, Colorado 92%, Wyoming 93% and
3
ew Mexico 90%. The forecast for the leading corngrowing states of the district as of September 1, 1920,
compared with the forecast for August 1, 1920,
the final estimate for 1919, follows:
Sept. 1
Aug. 1
Final
forecast from forecast from Estimate
condition
condition
Year 1919
Kansas . . . ........... 161,793,000 139,385,000
69,362,000
Colorado . . . . . . . . . . . . • 16,216,000
16,862,000
11,206,000
Nebraska ............ 243,717,000 212,602,000 188,241,000
Wyoming . • . . . . . . . . . . 1,466,000
1,488,000
768,000
Oklahoma ............ 90,814,000
83,491,000
74,400,000
New Mex.(10 counties). 2,196,000
2,076,000
2,400,000
42,437,000
37,823,000
Missouri (19 counties) .. 45,960,000
The Government's figures for September indicate
an increase of 65,507,000 bushels of corn over and
above the August 1 t forecast from condition prevailing at that time, the September estimate of 548,679,000 bushels being 175,809,000 more than the yield
in 1919.
In Oklahoma corn has made fairly good progress
t ward maturity. It i u ual for corn to deteriorate
an average of 5% during August, but this season's
large acreage is reported lo have mad the m st of
th · hcncfi ·cnt rainfall. Early corn is mal·ing r ·cord
ielcls I er acre and late planted fields · ntinu unu sually high in condition. A f w place in th northwestern part of the state suffered local losses from insufficient moisture or insect damage.
In Kansas, where the yield is now estimated at
27.14 bushels to the acre, as compared with 14.8 bushels as the ten year average, the reports say the present
crop is practically made except for danger of early
frost. Should frost be delayed to an average dateOctober 10th to 25th in the esatern half and October
2nd to 22nd in the western half-it would seem that
the bulk of the crop should be safe.
In Nebraska, where the largest corn crop of record
is in prospect, the late planted corn is maturing very
...,1 wly. In ome places the ear are still oft and will
r quire an abundance of sunshine and moderately
warm weather during the latter part of S ptember and
early in October. The same situation prevails to a
considerable extent in the northwestern corn-growing
counties of Missouri where an exceptionally large
yield is promised. In the Mountain states of this district the weather had been too cool for corn to make
good progress although the report from these states
is most encouraging.
Wheat.-Threshing has made slow progress in many
localities where there have been frequent and heavy
rains. More wheat was stacked thi year than usual
and a large part of the thre hing is to be done in September and October. The rain has damaged wheat
in the shock, stack and bin to an extent as yet und t rmined. The growth of grass on fields prepared
for fall sowing i causing extra work for the farmers. Seeding of wheat is already under way in th
big wheat growing states. While no official estimates
have been placed on the acreage of wheat to be sown
this fall there are indications of a larger acreage to be
harve ted ne"'Ct year. The Mis ouri report say farmers arc pr paring to increa e wheat eeding this fall
30% and pr paration of the ced bed is w 11 along.
great amount of early plowing is reported in Kansas and preparation for eeding is well advanced in
THE MONTHLY BULLETIN
4
that state, and also in Oklahoma. In Nebraska some
winter wheat has been planted. The supply of Kanred
wheat for seed is not sufficient to meet the demand.
Cotton.-The cotton crop in Oklahoma is reported
as being considerably better than the past ten year
average. Picking has generally commenced and first
bales were ginned on August 24th. The boll worm
and weevil have caused considerable loss in several
counties.
Potatoes.-The crop in Colorado is reported very
favorable even on dry land and the condition in
\Vyoming is also very good. Some of the early farm
crop of potatoes in Nebraska has been harvested and
the late commercial crop is expected to lJe ready to
harvest in September. Both Irish and sweet potatoes
are making favorable progress, an Oklahoma report
says.
Sorghums.-Kan as reports say grain sorghums
have made remarkable growth and are well advanced.
Prospects are reported excellent for the greatest crop
of record. Grai11 sorghums and peanuts arc making
favorable progress in Oklahoma.
Broom Corn.- The condition has deteriorated slight
ly on a count of the effect of excessive rains which
in some places in western Oklahoma were accompanied by wind. Harvest is practically complete.
Choice broom corn at Lindsay ranged from $240 to
$250 per ton and common averaged $150 per ton.
Fruit.-Condition of apples and peaches on September 1 indicates a production of approximately 11,667,000 bushels of apples and 1,560,000 bushels of peaches
in this district with Wyoming production not reported. The Government's September 1 forecast, based
on the percent of a full crop indicated by the condition on that date follows:
Pct. full
crop
Colorado
60
Kansas ...... 24
Missouri ..... 44
Nebraska .... 55
New Mexico .. 35
Oklahoma . . . 35
Wyoming .... 54
Apples
P1·oduction
bushels
2,626,000
1,079,000
5,324,000
1,375,000
566,000
697,000
Peaches
Pct. full Pro<luction
cro:µ
bushels
45
585,000
10
90,000
42
798,000
20
20,000
4
6,000
5
61,000
Commercial orchard sales of apples lagged this year
because of uncertainty of prices. Buyers for broker~;
and commission merchants were reluctant to contract
for orchards in July and August as usual, with the
result that sales of orchards were late. In some instances in the Missouri Valley region, growers prepared to pick and pack their own apples and market
through the co-operation of county farm bureaus.
AUGUST GRAIN MOVEMENT.
The movement of wheat to the markets in August
was about 25% larger in volume than in July; but
August receipts at Kansas City, Omaha and Wichita,
totaling 13,464,000 bushels, were only SOo/o of the total
received at the same markets in August, 1919. The
Oklahoma City and Denver reports in car lots showed
about the same percentages on wheat movements. Th~
car shortage and a determination on the part of growers to hold wheat on the farms rather than sell al prc-vailing prices are said to have curtailed the receipt.:; .
The month, however, brought considerable activity in
shipments to the gulf ports for export. Shipments
from Kansas City equalled about 50% of the total receipts, while Omaha shipments were 83% of receipts
and Wichita's shipment of 1,698,000 bushels was
more than double the total of receipts for the month .
At the opening of the month No. 1 ltarcl wheat sold
at Kansas City at $2.20(<02.39. From this low point
1he pric
rose to $2.55@2.75 on the 13th, then (1 ·dined to $2.45@2.54, the close of the month showing
an advance of 4@2lc on hard wheat and 17@23c ad vance in the price of No. 2 red. Local millers and
domestic shippers were fair buyers. Exporters were
very active buyers but operations were curtailed to
an extent by loading difficulties at the gulf ports.
The movement of corn in August was the smallest
for that month in ten years, evidencing a disposition
to await the outcome of this year's crop. The top
price of both No. 2 white and No. 2 yellow was $1.65.
No. 2 mixed corn sold at $1.40 at Kansas City on August 2, rose to $1.51 on the 5th and sold $1.54 to
$1.60 until the 31st when the selling price dropped
to $1 .45, or Sc better than at the opening of the month.
Oats in August sold at about 47c below the higb
price reached at the middle of June. No. 2 white oat:-;
at the close of the month was selling at 70@70¼c,
the same price as one month previous. Light sup plies and a good demand resulted in strong prices for
Kaffir, the month closing at $2.50@2.52 per 100 pound3
for No. 2 white, an advance of 27@28c in the month.
Flour and Milling.-The flour situation was quiet
during the month with sales scattered and mostly in
small lots, dtte to buyers being cautious about load-
RECEIPTS OP GRAIN
Kansas City
Omaha
1920
1919
1920
1919
Wheat .......................... 8,532,000
18,916,200
4,176,000
5,588,400
Corn ........................... 345,000
381,250
1,076,600
1,075,000
Kaffir . . . . . . . . . . . . . . . . . . . . . . . . . 235,400
64,900
........
. .......
Oats . . . . . . . . . . . . . . . . . . . . . . . . . . . . 899,300
1,196,800
1,478,000
1,068,000
Rye . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 89,100
73,700
155,100
152,900
Barley . . .. . .. .. . . .. . . .. .. .. . .. . . 127,500
241,500
99,000
118,800
SHIPMENTS OF GRAIN
Wheat . . . ....................... 4,185,000
7,177,950
3,480,000
2,846,400
Corn . . . . . . . . . . . . . . . . . . . . . . . . . . . 197,500
345,000
1,050,000
1,121,400
Kaffir . . . . . . . . . . . . . . . . . . . . . . . . . . 277,000
28,000
........
. .......
Oats . . . . . . . . . . . . . . . . . . . . . . . . . . . . 270,000
537,000
871,000
976,000
Rye . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37,400
14,300
60,500
155,500
Barley ............. , . . . . . . . . . . . . 97,500
42,900
43,200
142,200
Wichita
1920
1919
756,000
2,875,000
5,000
........
32,000
. .......
20,000
8,700
... .....
........
. .... ...
. .......
1,698,000
12,000
32,000
22,000
4,219,200
4,000
........
........
. .......
12,000
. .......
. ..... ..
THE MONTHLY BULLETIN
ing up and figuring on lower prices. Production of
flour at Kansas City, Omaha and 92 interior mills
in Missouri, Kansas, Oklahoma and Nebraska for the
four weeks ending August 8, 15, 22 and September 1,
as reported by the Northwestern Miller, follow:
1920
Kansas City . . . . . . . . . . 293,000
Omaha . . . . . . . . . . . . . . . 34,555
Outside .............. 1,115,527
1919
327,600
86,050
1,361,944
Pct. Chang"
-10.5
-59.8
,
-18.9
Total Barrels . . . ..... 1,443,082
1,775,594
-18.6
Kansas City prices per barrel on car lots of hanl
wheat flour at the close of August were: Patent.::;,
$11.75@12.50; straights, $11@11.50; clears, $8@10.50;
low grade, $6.50@8. Red wheat flonr was quoted at
50@75c below the prices quoted on hard wheat patents and straights and about the same as to clears
and the low grades. Corn meal, sacked, was quoted
at $3.75 per 100 pounds for cream and $3.55 per 100
pounds for standard. Flour receipts at Kansas City
in August were 52,000 barrels compared with 82,225
barrels in August, 1919. Shipments of flour for th e
mouth were 219,050 barrel s against 351,000 barrel s in
Augu st of last year.
LIVE STOCK.
Reports from all sections of the 'l'enth Federal Pcserve District say that live stock is in excellent condition, that animals on farms and ranges are generally
free from disease, and that there is an over-abundance
of feed for fall and winter and for months to come.
Plenteous rains and moderately cool temperature
through August and the forepart of September combined to make the vast live stock area of this district
one broad sweep of green pasture, whereas, at this
time last year a large portion of this area was brown
and bare, necessitating shipments of live stock to
pastures and feed lots in more favored parts of the
country. With such grazing as now reported, witl1
a record crop of hay and bins soon to be overflowing with corn, the situation is reversed and there i;-;
setting in, as the records at the stock yards show, a
strong movement of stockers and feeders from the
markets to the farms and ranges.
There is noted some indecision on the part of farmers as to the extent of feeding to be done, and some
nervousness over the future of prices is exhibited, due
chiefly to losses heretofore sustained, and grain prices
being relatively higher than live stock. Still, it is
observed that many farmers are taking advantage of
the big supply of feed and are intending to ship only
as many head of cattle, sheep or hogs as are fat and
fit for marketing and hold the rest on feed until they
are in condition. Indicating that the late fall and
winter will see a larger proportion of fat stock and
a smaller proportion of half-finished stock on the markets.
Farmers and business men in many sections are cooperating to encourage farmers to feed corn to stock
and drive to market rather than undertake to dump
their corn on the market at prevailing prices. "Helping the farmer to put legs on his corn" is the way
it is put by a leading Oklahoma banker who is doing all he can to promote such a plan in his stale.
It is pointed out that both feeder cattle and fee<ler
5
lambs are much lower in price this year than last and
with the immense volume of feed in sight the prosp~ct for a profitable feeding season is fully as good
a,:; in recent years, if not better, and it would be suicidal for the farmers to rush their grain to market
and force down prices, instead of putting a good part
of it into live stock, especially when fat stock is in
demand at fairly good prices.
At the Live Stock Markets.-August brought i111provement to the supply of live stock at the six markets of this district. The reports show a total of
28,911 cars receive<l during the month, which compares with 23,258 cars received in July and 33,957 cars
received in August of last year. August figures indicate increases over the July receipts of 41.5% on cattle, 64.8% on calves, 66.6% on sheep and 136.1% on
horses and mules, while there was a decrease of 17,1 %
on hogs marketed. Comparing August receipts with
those of the corresponding month in 1919, however,
there were decreases of 23.9% on cattle and 26.2%
011 sheep, and increases of 12.1% on calves, 5.3% on
hogs and 4% on horses and mn]cs.
Catllc Calves
Kansas City . • 248,888 66,836
Omaha ..
100,242
9,046
St. Joseph ..... 43,160 11,400
Denver ..
20,279
3,469
Oklahoma City.. 32,871
6,974
Wichita ....... 22,370
Hogs
135,161
156,966
115,620
15,967
13,246
19,540
HorSC8 and
MulrH
Shcop
t73,884
483,272
79,247
95,690
3,994
974
9,53G
2,712
3,430
1,278
363
3,269
August, 1920 . . 476,810 96,724 456,800 837,061 20,587
July, 1920 . . . . . 336,924 58,695 551,191 502,362
8,719
August, 1919 . . 599,715 86,243 433,497 1,149,075 19,750
Eight mos. 1920.3,245,179 378,104 6,164,431 4,240,117 140,841
Eight mos. 1919.3,703,654 391,210 7,326,936 4,512,698 99,034
Receipts of cattle at these markets were largest of
the year, except in January, but it is said the good
pasture and shortage of cars combined to make the
r 'Ceipts much smaller than was expected. Good dry
lot steers were scarce all month and prices held steady
at around July prices, while the preponderance of
grass cattle resulted in frequent breaks in prices.
Heavy steers at the end of August sold up to $16.00@
] 7.25, lighter weight steers brought $12.00@16.75 and
choice cows and heifers $10.00@ 15.50. August shipments of stockers and feeders to the country were
heaviest of the year. At the end of the month stockers sold at 9.50@11.00 for choice and $6.00@9.50 for
common and medium, while feeders sold at $12.00@
14.00 for choice and $8.50@11.00 for common and medium kinds.
The supply of calves on the markets was the heaviest ever yarded in one month and trade was irregular. Best veals and weighty calves coming into the
baby beef class closed the month at $13.00@14.00 and
medium-common calves at $6.00@12.50, which was
slightly under the prices at the end of July but better
than at the close of August a year ago.
The supply of hogs was moderately heavy, above
the average for the eighth month of the year, and the
market was featured by weakness of medium and common grades and uneven trading. The range of prices
on bulk sales for the month was $14.25@ 15.85 and
the top price paid was $16, which compared with a
price range on bulk sales in August of last year oi
$18.00@23.15 and $23.20 at the top price paid. Kan-
THE MONTHLY BULLETIN
6
sas City's closing top price ~as $15.35 and Oma~a's
dosing top price was $1.S, which was 15c to 25c higher than the level reached at the end of the third week
uf August.
With heavy receipts the sheep trade in August was
uneven at times, though the development of the broadest demand of the year for feeders to ship to the
country figured as a feature of the month. Closi?gprices for the month were $12.00@13.40 for choice
lambs, $6.50@12.00 for fair to good lambs, and $9.00
(2, 12.75 for feeding· lambs. Yearlings sold at $8.50@
Y.50, wethers at $7.50@8.50 and ewes at $5.50@7.00.
Breeding ewes on the last clay of the month were sold
At $8.50@9.S0.
Packers' Purchases.-Purchases of animals for
slaughter by the packers in the month are here giv~n
in comparison with the total purchases at the six
c 'nters for July, 1920, and August, 1919:
Cattle
August, 1920 . . .... 225,838
July, 1920 ......... 186,179
August, 191!) ...... 300,814
Calves
56,784
38,467
59,,138
Hog-s
346,439
423,251
351,~62
Sheep
322,177
252,461
:115,4;1s
Horses and Mules. \i\T ith heavy 1-e( c1pts for th j..,
time of the year there was a fairly good d e111,rnd itJ
J\ ug11st for the better kiucls of rnat ured hcm-:~s with
prices holding- strong. Common slack w~i.- 111 slow
demand and was mewed at relatively low figures.
----PETROLEUM.
High production of crude oil in Kansas and Oklahoma was maintained during August. The average
tbily production, according to unofficial repo~·ts, v".'a~
estimated at an average of 398,900 barrels daily with
a total estimated production of 12,365,900 barrels for
the month. This is 151,850 barrels above the July
production and within 18,786 barrels of the May record, which was the highest of the year to date. August production was also 32% or 3,062,800 l>ar~els
more than that of Augu. t, 1919. August product10n
is shown in comparison with the record or a year ago
in the following:
All Kansas . . . . . . . . . .
Oklahoma outside . . . .
Cushing and Shamrock.
Healdton . . . . . . . . . . . .
AuP.'., 1920
3,056,600
6,479,000
1,038,500
1,791,800
Total Barrels ........ 12,365,900
Aug., 19.19 Pct. ChangP
2,557,500
19.5
4,473,300
44.8
-08.2
1,131,500
1,140,800
57.l
9,303,100
32.9
In the eight months of 1920, now passed, Kansas
and Oklahoma produced approximately 91,360,793 barrels of crude oil, as against 73,492,134 barrels for the
corresponding eight months in 1919, an increase of
18,234,559 barrels or 24.8%. \!Vyomi~1g production i~
now approaching 2,000,000 l>arrcls per month.
The intensive development work which has been
prosecuted this season in the hope o[ increasing the
output of oil to meet consumptive requirements i.s
bringing results, as the following tabulation of the
r eports for August shows:
Daily New
Completed Production
Wells Barrels
Rigs
Kansas . . . . . . . . . . 333
18,103
117
Oklahoma . . . . . . . . 982
78,995
542
Wyoming . . . . . . . . . 40
2,84[';
l-15
August. 1920 ..... l,3GG
July, 1920 ........ 1,135
August, 1919 ..... 1,171
99,!.M:~
81,3GG
79,021
Drillings · Total
382
499
1,492
2,034
:187
532
80 ·1
8!)9
2,2GI
744
1,751
2;424
:l,065
:J,32:i
2,495
Pipe line shortage is beginning to affect oil production. This is particularly the case in Wyoming where
only the larger operating companies have supplies of
tubing and casing stocks of their own for drilling op:erations.
August brought no important change in the price
of crude oil of the various fields. Prices held steady
with slight variation as to supply and demand. Gasolene contintted in strong demand with the supply limited. Some improvement in the Pacific Coast supply
was noted, due largely to the Mid-Continent fields tals,ing care of a large portion of Pacific Coast territory.
Acute shortage of gasoline in various sections of the
country is said to be due chiefly to transportation
difficulties, although refiners are making strenuous
efforts to take care of the situation.
MINING.
Zinc and Lead.-The month of August showed n.
considerable betterment both in the shipments and
price paid for both zinc and lead ores in the MissouriOklahoma-Kansas fields, according to the Joplin
market report. Due to the efforts of all the clements
desiring better shipping facilities shipments of zine
ores increased 20% over the previous month, while
lead ores increased approximately 12%. The average
prices of zinc ore rose $1.00 per ton over the previou-..;
month, while lead ores increased $14.00 per ton. Shipments of zinc blende ores averaged 10,150 tons per
week, with an average price of $47.33. Calamine ores
averaged 170 tons per week, with an average price
of $35.00. Shipments of lead ores averaged 1,610 tons,
with an average price of $108.03 per ton.
At the beginning of the month there were 31,000
tons of unsold stock of blende ores in the bins of the
ore producers as compared with 13,000 one year previous. The month ends with a surplus of 33,000 tons
n[ blencle ores as compared with 16,500 one year ago.
It: is apparent therefore, that the stocks have grow11
2,000 tons in spite of the increased shipments.
Production conditions, so far as supplies are <;onccrned, continue to be difficult and fuel from the Kansas fields is difficult to obtain, while other mining
and milling supplies are getting out of stock in many
of the supply houses. The situation is difficult to
understand and take care of under steady operation.
Labor on the other hand is more plentiful and is growing in efficiency. It is also obvious that many small
c ncerns are beginning prospecting operations especially in those districts where lead is plentiful.
'l'he most difficult thing facing the district at the
present time appears to be the shortage of cars for
shipping ore and the increased freight rates which
have jnst gone into effect. Mr. Ross Blanchard, traffic manager for one of the large smelting concerns,
reported to the meeting of the Tri-State Zinc Mine
Operators Association, that the new freight rate'i
would result in an increased cost of $4.00. per ton for
the slab zinc, a part of which cost he anticipated being
absorbed by the zinc mining industry, in that it would
be called upon to supply its ores at that much less
pri e to the general market. The following table
giv cs the new and ol<l freight rates on zinc ores to
the vario11s smelting centers:
·
THE MONTHLY BULLET=I=N=========-===7
Old Rates
To St. Louis .............. $3.70
To LaSalle, Ill.. . . . . . . . . . . . 4.60
To Cleveland, Ohio, and
Donora, Pa. . . . . . . . . . . . . 6.10
To Ft. Smith, Ark.. . . . . . . . . 2.40
To Bartlesville, Okla.. . . . . . . 1.90
New Rates
$5.00
6.13
8.3fi
a.2fi
2.55
Inc.
$1.30
1.53
2.25
.85
.65
Figures on the increase on rates for zinc, including
both ore and manufactured prodnct of the smdters
to their markets :
From Bartlesville and
Ft. Smith to St. Louis .... $3.53
From East St. Louis
to Boston ........ ...... 7.40
$4.7!)
$2.0fi
10.15
,1.00
Colorado Metal Mines.-Therc has been ve1y little
change in the mining camps during the past month.
but the recent rise in freight rates has created a feel:
ing of discouragement and will probably result in decreased production in the near future.
.
This increase in freight rates works a very considerable hardship on the metal miners of Colorado. In
addition to the direct effect of increased freight rates
on ore to the smelters the smelters have rai ·eel their
rates to protect themselves against the increased cost
of material s on whirh thev have to pay fr ight. 'l'hcy
ha\'e also increased the dcclttctions they mal·e from
the market prices of lead and copper on an~otmt of
th<' increased cost of shipping these metals to the
refineries and markets. Furthermore, there will probably be increased costs in supplies due to the added
transportation charges on everything. This will probably result in confining production to high grade ore,
or in closing down altogether in many cases and will
probably result in loss of revenue through decreased
tonnage as far as Colorado camps are concerned.
The gold producers are not so much affected by these
increased rates, bnt the failure of Congress to pa$~
the McFadden bill has greatly di courao-cd them and
nrnny gold properties arc closing down.
Coal.-Production of bituminous coal in the United
States during- the first 205 working days of this year
was 347,406,000 net tons. This is 49,693,000 tons more
than was produced in the same period last year, but
40,506,000 tons below the output of the first 205 working days in 1918. \Vith the miners at work in all of
the fields of this district and no strikes now threatening, operators and dealers are more confident of their
ability to supply the demand for coal in the fall and
winter months. Failure to obtain cars for proper
distribution, it is asserted, would be the only cause
of a coal shortage anywhere. As to prices, however,
the reports are Iese; encouraging The increased cost
of production from the $1.50 a day wage increase to
da~- men at the mines and the increased freight rate_:;,
are the two big factors which are pointed to as barriers to lower coal prices.
Salt.-In the salt business the demand continue.;
and owing to increased freight rates now in effect,
the demand for salt was exceptionally good in Aug-ttsL This in spite of the fact that manufacturers
have been compelled to advance their product on account of excessives costs of coal, cooperage an<l such
supplies. Considering shipments from all plants, they
arc not up to capacity on account of car shortage and
Jack of necessary supplies. At the same time, however, more cars have been offered for salt shipment:
lately than was the case six weeks ago. There seem..:
to be a sufficient amount of labor available. The fncl
shortage is causing a great deal of concern in the salt
industry.
BUILDING.
Reports from sixteen cities show 331 mo:e permit~
for buildings were issued in August than 111 J_ul~ ot
this year, although the estimated cost of bmldmgs
permitted was $352,860 less than the total for the
previous month. Compared with the record of the
same month last vear the August record shows a1!
increase of 152 bu1ldings permitted and a decrease of
$2,341,667. or 37.7%. in the estimated cost. The rcport'i for At1g-ttst, this year and last, follow:
Permits
Estimated Cost
Pel.
1920
1919
1920
1919
Change
Kansas City, Mo.. 314
395 $ 919,890 $1,122,255 - 18.0
Lincoln, Neb. . . . . 54
53
646,425
461,700
39.9
Tulsa, Okla. . . . . . 129
162
491,700
871,885 -43.6
Okla City, Okla.. . H6
132
446,300
692,835 - 35.6
Dcm;cr, Colo. . . . . 267
278
~40,550
690,900 -50.9
Wichita, Kam; .... 1168
112
2G9,077
~16,705 - tR.2
Kamias Citv Kans.
~8
2:1
205,800
Gfit1,6% --62.8
Omaha, N ciJ'. . . . . .
8:1
mo
1%, 1fiO
78:l, 11 O - 7fi. 1
fl2
!l2,:Hi0
,1,I0,400 - 79.0
Okmuh{<'C', Okla. . :rn
Colo. Spgs., Colo.. :rn
21
7!J,<i00
11,781
fi7G.7
Ch ycnnc, Wyo. . . 29
2::
o0,:32fi
:lG,795
6:l.')
St. ,Joseph, Mo.. . . 5-1
,rn
15,:350
58,!>10 - 23.0
Muskop-ce, Okla. . . 19
12
39,750
20,283
96.0
Pueblo; Colo. . . . . 44
5:l
2,1,883
84,700 - 70.6
Topeka, Kans. . . . . :36
41
16,580
52,443 -68.4
Leavenworth, Ks. .
3
5
3,000
9,000 -66.7
Total ........... 1,756 1,604
$3,866,730 $6,208,397
-37.7
Lumber and Materials.-There was a great rush on .
the part of the saw mills to ship all orders possible
on or before August 26th. the date at which the advance in freight rates would become effective. So far
as reported, this advance in_ freight rates ,_vent it;ro
effect on that date on all mtcr-statc traffi . wh1ch
would cover all of the movement practically of lumh er
into this territory. Retailers also were anxious to
avoid payment of the freight aclv1.nces. As a result:
retailers were pretty well stod cd up hy the encl nt
the month, or at least as far as the car situation would
permit, ancl there were indications of a temporary letup in buying by retailers.
\Vhile the car shortage does not seem to be so acute
in the movement of lumber. in other lines there is
serious curtailment of shipment because of that fact.
This is particularly true in reference to cement. From
information l!athered it seems the cement mills haYe
practically g-;od stock on hand and the output ha .-;
h ~e11 consiclerahlv increased. Bnt there seems tn lw
110 question hut that their inability to get cars is the
one obstacle in the wav of their movement of cement.
This means, o{ cours~, the stoppage in many case~
of bnildings alreadv in course of erection and acts a"
a deterrent in the starting of new projects. Tt a 1~'.o
would indicate that one of the resnlts will he tli,~
movement of a less amount of lumber as well as
cement by reason of the inahilitv to secure the latter.
Indicattons would be that lmilrling on the farms anc}
in sm;1ller communities woulcl proceed on a fuller vnltlllle th:rn perhaps in the larger centers, according- to
the lumber dealer's view.
Th ere have been no ·cnsationa1 or material chang-es
in prices in the past few weeks.
1
8
THE MONTHLY
BULLETIN
Statement of Condition
)?EDER.AL RESERVE BANK OF YANS.AS
Including Branches
ITY
At Close of Business
Sept. 10, 1920
Sept. 17, 1920
At Close of Business
Scpt.1~1920
Rcpt.17,1920
R1'~SOURCES
604 ,60f,.0o
592,00fl.00 $
Gold Coin and
rtificatcs .... $
Gold ~ ttl m nt f•'und I◄'. R.
28,184,2fi9.8H
Board ................. . 21,927,545.60
39,006,390.00
Gold with F. R. Agent ...... . 39,004,340.00
4,992,642.20
4,335,692.20
Gold Redemption Fund ...... .
5,349,941.23
5,349,941.28
Gold with Foreign Agents ... .
Legal Tender Notes, Silver,
1,87:1,879.85
1,484,275.70
etc .................... .
LIABlLfil'IES
Capital Paid In ...... ........ $ 4,426,:300.00 $ ,1,428,450.00
8,~95,257.87
Surplus . . . . . . . . . . . . . . . . . . . .
,390,257.87
16,9'10,4 75.14
Covemm nt DepoRilR . . . . . . •
2,6:M,689.4 I
81,048,941.66
Du to M mb rs, R<'H. Act.... 80,497,:300.27
1,107,4..-12.86
Other D0posits . . . . . . . . . . . . .
l,155,90:l.25
60,835,322.32
Dcfcn cl Availability Items... 61,721,41'1.36
F. R. Notes in Actual Circulation .................. 106,508,475.00 106,710,726.00
F. R. Bank Notes in Actual
Circulation . . . . . . . . . . . . . 15,779,100.00
15,780,500.00
All Other Liabilities.. . . . . . . .
2,400,537.75
2,646,570.43
Total Liabilities .......... $283,419,157.94 $297,893,685.28
Bills Discounted:
Secured by Govt. War obJigations ............ .
All other ............. .
Bills Bought in Open Market.
U. S. Govt. Bonds .......... .
U. S. Cert. of Indebtedness .. .
Bank Premises . . .......... .
Uncollected Items and other
Deductions from g1·oss deposits ................ .
5% Redemption Fund against
F. R. Bank Notes ....... .
All Other Resources ......... .
41,039,121.85
68,055,518.00
3,701,109.44
8,867,900.00
12,825,500.00
836,184.52
37,240,062.52
77,036,566.18
3,874,188.57
8,867,900.00
12,867,500.00
836,181.52
74,234,082.04
75,964,707.:12
915,590.00
250,352.22
915,690.00
281,268.15
Total Resources .......... $283,419,157.94 $297,893,685.28
OTHER TOTALS
Total Gold Reserves ......... $ 71,209,524.17 $ 78,137,838.37
Total Earning Assets ........ 134,489,149.29 139,886,217.27
Total Gross Deposits. . . . . . . . . 145,909,487.32 159,932,181.98
Contingent Liability as Endorser on Bills Redisrounted with other F. R.
Banks . . . . . . . . . . . . . . . . . 22,811,692.04
26,729,377.04
Ratio of Total Res. to Net Deposit and F. R. Notes LiabiliUes Combined . . . . . . .
40.7%
41.9%
Ratio of Gold Res. to F. R. Reserve Notes in Actual Circulation after setting aside
35o/o against net deposit
liabilities . . . . . . . . . . . . . . .
44.6%
47.4%
CLEARINGS
Total Clea.rings for Week .... $224,671,639.74 $309,6 l8,947.16
Total number of items handled
1,035,275
l,262,077
@FedFRASER