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THE MONTHLY REVIEW (overing (ondition1 in the Tenth Federal ~erve Vutrict Federal Reserve Bank of Kansas City M. L. McCLURE, ChairmtJn Board of Directors t1nd Federal Reseroe Agent KANsAs CrTY, Mo., VoL. 9 The Situation at a Glance. (Februq,ry, r924, Compared with Februmy, I923) f Bank debits to customers' accounts in 29 cities four weeks ending March 5, aggregated $1,029,857,000; decrease $136,282,000, or I 1.9%. f Building in 18 cities: Permits issued 2,217, estimated cost of construction $6,638,225; increase 147 or 7.1% in permits, decrease $692,523 or 9.4% in estimated cost. f Clearings Federal Reserve Bank of Kansas City and Branches: Amount $635,879,751.75, number of items 4,561,796; increase $1,709,957.02 or 0.3% in amount and 69,430 or 1.5% in number of items. ,r Coal mining in 6 States, 55.7% of full time capacity; in February last year 51.8% of full time capacity. ,r Commercial failures in the Tenth District: number 129, liabilities $1,968,081; increase in number 40 and in liabilities $813,697 or 70.5%. ~f Crude oil production in 4 States, 17,672,200 barrels; ,r ,r ,r C. K. increase 598,200 barrels or 3.5%. Flour production by Southwestern mills reporting, 1,648,888 barrels;. increase 217,629 barrels or 15.2%. Grain receipts (bushels) at 4 markets: Wheat 7,758,400, increase 281,950 or 3.8%; Corn 10,293,6oo, increase 4,536,400 or 78.8%; Oats 2,41 I ,900, increase 275 1 800 or 12.9%. Lead ore shipments, Missouri, Kansas, Oklahoma district, 7,053 tons at $120.11 per ton; decrease 24 tons, increase $10.77 per ton in average price. 1 Live stock receipts at 6 markets: Cattle 342,272, decrease 28,202 or 7.6%; Calves 45,271, decrease 4,841 or 9.7%; Hogs 1,039,016, increase 48,026 or 4.8%; Sheep 538,278, decrease 38,11 I or 6.6%; Horses and Mules 12,743, increase 2,292 or 21.9%. ~ Meat packing at 6 centers: Cattle 193,733, .decrease 10,791 or 5.3%; Calves 37,665, increase 1,109 or 3%; Hogs 756,32.1, decrease 22,152 or 2.8%; Sheep 330,638, decrease 4,010 or 1.2%. ~ Zinc ore shipments, Missouri, Kansas and Oklahoma district, 58,194 tons at $44.60; increase 769 tons and $2.05 per ton in average price. APRIL BoAR.DMAN, AJsistant Federal Reuro4 Agent and Secretary 1, 1924 UBSTANTIAL improvement in trade and industrial activity in the Tenth Federal Reserve District has come with the passing of winter. February reports reflected good gains over January in distribution of merchandise by wholesalers in all lines except drugs, but because of bad weather and muddy roads the February business did not quite come up to the business done in February of last year. Retail trade by department stores in the larger cities was better than it was in the previous month and heavier than a year ago. In the smaller cities and country districts retail trade reports were irregular, varying in different sections, with the average about the same as a year ago. The petroleum industry experienced renewed activity. Daily average production increased slightly and prices advanced on crude and refined products over prices prevailing in recent months. Zinc and lead ore shipments were heavier than for several months. Lead ore sold at an average of $10.77 per ton higher and zinc ore at $2.05 per ton higher than in February, 1923. Production of gold, silver lead and other metals in the Colorado mines increased, and soft coal mining operations in six states were at a higher percent of full time capacity than a year ago. The agricultural situation was reported better than at this season last year. Fall sown grains were coming through the winter in good condition. With abundant soil moisture prospects in March were favorable for large farm production, increased acreage of corn, cotton and sugar beets but decreased acreage of both spring and winter wheat. Grain moved to the markets during February in greater volume than since last fall and at firmer prices. Flour production was maintained during February at greater act1vJty than a year ago The livestock industry was also reported in better condition than at this time last year. Large supplies of stock, for a winter month, were marketed during February and prices improved. Meat packing was seasonally heavy, but below operations in the second month of last year. Building operations in February were at a high rate of activity and there was an increase in the number of permits issued in cities of this District, though the estimated cost was not up to the total of a year ago. Indications pointed to large construction operations in cities and towns and improvement of country highways. The trend of employment during February showed signs of rapid absorption of idle skilled and common labor as soon as weather conditions would permit a general resumption of outdoor activities. S Summary of Business Conditions in the U. S. on pages 7 and 8. This!Copy Released For PublicatfonJn Morning Newspapers April 1 2 THE MONTHLY REVIEW PRINCIPAL RESOURCE AND LIABILITY ITEMS OF MEMBER BANKS IN SELECTED CITIES Financial The easy money conditions which prevailed through the previous winter months continued through February and were practically unchanged during the first half of March. Borrowings for commercial and industrial purposes were light and a plentiful supply of funds was available for loans. and investments at the prevailing low rates. While the rediscounting of paper for Member Banks by the Federal Reserve Bank of Kansas City and its branches at Omaha, Denver and Oklahoma City was at the low level of the year, the total of $26,970,718 as of March 5 was $8,186,748 or 43% above that total of March 7, 1923, when rediscounts were at the lowest level for that year. However, further declines in the totals of rediscounts for; Member Banks were reported as of March 12 ' and 19. Open market purchases of bills by the Federal Reserve Bank on March 5 aggregated $10,526,857, approximately ten times the aggregate amount of bills purchased and held on the corresponding date in 1923. On the other hand, reports of Member Banks showed a marked falling off in the volume of loans and investments out of their own funds from the totals reported one year ago. On March 5, this year, 73 Member Banks reported $542,286,0001 of loans, discounts and investments, which was $8,402,000 less\l''than the total reported four weeks previous to that date and $55,743,000 less than the total reported March 7, 1923. Gross deposits of 73 Member Banks as of March 5 were $540,828,000 or $54,289,000 less than on the corresponding reporting date in 1923. Demand deposits declined 13.4%, while time deposits increased 6.9% and government deposits increased 35. 1 %- Bank Debits Clearing houses in twenty-nine cities reported for their members debits to individual accounts aggregating $1,029,857,000 during a period of four weeks ending March 5, 1924. Compared with the corresponding four weeks ending March 7, 1923, the total of $1,004,970,000 for twenty-eight cities reporting for both years reflects a decrease of $136,282,000 or 11.9%. The reports of debits by banks to accounts of their customers in the cities as reported by their clearing houses, follow: Four weeks ending Mar. S, 1924 Atchison, Kansas _ _ _ _ _ t, 5,529,000 Bartlesville, Oklahoma.............. 10,097,000 Casper, Wyoming........ _............ 11,202,000 Cheyenne, Wyoming___ 7,216,000 Colorado Springs, Colo............. u,725,000 Denver, Colorado•- - - - - 142,243,000 Enid, Oklahom- - . _ _ _ _ 8,849,000 Fremont, Nebraska.................... 2,875,000 Grand Junction, Colo.. --··········· 2,128,000 Guthrie, Oklahoma.................... 2,889,000 Hutchinson, Kansa.~- - 8,954,000 Independence, Kansas·-············· 8,242,000 Joplin, MSssourL_····- ·············· 13,707,000 Kansas City, Kansas....·--······· 18,044,000 Kansas City, MissourL--··- ····· 285,689,000 Lawrence, Kansa__ _ _ _ 4,128,000 ~incoln, Nebraska.................... 24,887,000 McAlester, Oklahoma................ 4,58J,ooo Muskogee, Oklahoma................ 11,011,000 Oklahoma City, Ok}____ 61 ,162,000 Okmulgee, Oki...__ _ _ _ 6,512,000 Omaha, Nebrask...____ _ 168,046,000 Parsons, Kansa._ _ _ _ _ :2 ,331 ,ooo Pittsburg, Kansa___ __ 5,6o7,ooo Pueblo, Colorado.. _ __ _ 18,491,000 St. Joseph, Missour· 56,209,000 Topeka, Kansas .... _ _ _ _ 14,356,000 Tulsa, Oklahom....___ _ _ 77,871,000 Wichita, Kansas·-······················· 35,274,000 Tota _ _ _ _ __ _ _ _ 1,029,857,ooo *-Began reporting January 16, 1924. Four weeks ending Mar. 7, 1923 1, 5,522,000 n,284,000 13,873,000 10,794,000 10,854,000 148,092,000 12,225,000 4,722,000 2,283,000 3,024,000 12,236,000 9,005,000 13,850,000 15,o66,ooo 314,615,000 3,963,000 3,399,000 23,236,000 75,865,000 8,946,000 193,648,000 3,689,000 5,902,000 13,134,000 62,915,000 15,392,000 99,187,000 44,531,000 Pct. Change 0.1 -10.5 -19.3 -33.I 8.o - 3.9 --27.6 -39 I -6.8 -4.5 --26.8 - 8.5 -1.0 19.8 7.2 4.2 34.8 -52.6 - 1 9.4 --27.2 -13.2 - 36.8 - 5.0 40.8 -10.5 -6.7 --21.5 --20.8 -11.9 Mar. 5, 1924 Mar. 7, 1923 73 Banks 78 Banks I. 2. 3. 4· 5. 6. 7. 8. 9· Loans and Discounts (including rediscounts:) (a) Secured by U.S. Govt. obligations.---···$ (b) Secured by stocks and bonds, other than U.S. Bond (c) All other.---•· Investments: (a) U.S. pre-war bond (b) U. S. Liberty bond (c) U. S. Treasury bond (d) U. S. Victory notes and Treasury notes.... (e) U. S. Certificates of Indebtedness__··-·· (f) Other Bonds, Stocks and Securities_ ...... Total loans and discounts, and investments_.. Reserve balances with F. R . Banlr; Cash in vaul Net demand deposits on which reserve is compute Time deposi Government deposit Bills payable and rediscounts with F. R. Bank secured by: (a) U. S. Govt. obligation (b) All other 6,341,000 t, 8,238,000 87,12.1,000 322,751,000 80,ogo,000 361,285,000 II,853,000 37,759,000 3,368,000 14,688,000 3,109,000 55,296,000 542,286,000 46,278,000 12,142,000 12,077,000 46,639,000 3,871,000 21,392,000 5,995,000 58,442,000 598,029,000 49,446,000 II,788,000 4o6,9r2,ooo 132,415,000 1,461,000 470,137,000 123,899,000 1,081,000 867,000 10,444,000 4,323,ooo 3,104,000 TOTAL (Items 3 to 9 inclusive)·--·-···········-··'$1,152,845,ooo '$1,261,807,000 NoTE: Due to consolidations of banks, the 73 banks reporting in 1924 are serving practically the same business served in 1923 by 78 banks; hence, figures for the two periods are comparable. Savings in Banks Deposits to Savings accounts reported by 56 banks in cities of the Tenth District on March I aggregated $103,900,887, which was $57,615 or .05% less than the total reported February 1, and $4,795,409 or 4.8% more than the aggregate on March 1, 1923. The number of savings accounts reported by 50 banks March I was 336,000, an increase of 1,773 or 0.5% over February 1 and an increase of 37,294 or 12.5% over March I, 1923. The summary follows: SAVINGS DEPOSITS Banks Mar. I ,1924 Feb. 1, 1924 Denver, Colorado................ 7 '$ 56,135,217 '$ 56,256,041 Kansas City, Kansas.·- ······ 4 2,571,429 2,625,459 Kansas City, Missouri.·-···· 8 13,154,190 13,037,479 Lincoln, Nebraska._............. 3 2,746,750 2,797,349 Oklahoma City, Okla...·--· · 6 3,629,099 3,586,699 Omaha, Nebraska...........•.... 6 7,657,559 7,563,59 1 8,768,461 8,915,186 St. Joseph, Mo·-·················· 6 Tulsa, Oklahom · 6 5,742,086 5,879,739 1,409,499 1,376,787 Wichita, Kansas..······-········ 5 Outside....... _ _ _ _ _ 5 2,012,727 1,994,042 Mar. 1, 1923 $ 53,424,430 2,400,108 12,437,998 2,815,773 3,475,920 7, 298,336 8,291,655 5,753,985 1,256,481 1,95°,792 TotaL-···-···········- - -56 '$103,goo,887 '$103,958,502 SAVINGS ACCOUNTS Banks Mar. 1, 1924 Feb. 1, 1924 Mar. Denver, Colorado................ 6 96,429 96,177 Kansas City, Kansas.......... 3 9,041 9,o73 Kansas City, Missouri........ 7 85,625 85,397 Lincoln, Nebraska._............. 3 14,699 14,736 12,481 Oklahoma City, Okla.·---· 6 12,534 Omaha, Nebraska_.............. 6 6o,549 59,6o4 St. Joseph, Missouri ............ 6 22,444 22,370 Tulsa, Oklahom _ _ __ 5 19,793 19,439 Wichita, Kansas .................. 5 10,925 I0,982 Outside............... _ _ _ _ 3 3,961 3,968 Tota.___ _ _ ·················50 336,000 1, 1923 82,515 8,355 88,166 14,183 11,154 41,047 21,783 18,307 9,724 3,472 334,227 Commercial Failures The record of business failures in the United States during February showed decreases of 378 in number and $15,330,471 in liabilities from the record for January. Compared with the totals for February, 1923, there was an increase of 222 in the number of failures, but the amount of liabilities for February this year was $4,685,902 or 11.5% less than for the month last year. THE MONTHLY REVIEW 3 CONDITION OF RETAIL TRADE IN CITIES OF THE TENTH FEDERAL RESERVE DISTRICT DURING MONTH OF FEBRUARY, 1924 (Based upon reports from Eigl,Jeen Department S1twes.) Kansas City (J) Percentage increase (or decrease) of net sales during month of February, 1924, over net sales during same month last year_ _ _ _ _ _ _ _ _ _ _ _ __ Percentage increase (or decrease) of net sales from Jan. 1, 1924, to February 29, 1924, over net sales during same period last year ________________ Percentage increase (or decrease) of stocks at close of February, 1924, over stocks at close of same month last year_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ Percentage increase (or decrease) of stocks at close of February, 1924, over stocks at close of January, 1924-_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ Percentage of average stocks, selling price, at close of each month this season (commencing with January 1) to average monthly net sales, selling price, during the same periou.-_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ Percentage of outstanding orders (cost) at close of February, 1924, to total purchases (cost) during the calendar year 1 9 2 3 1 - - - - - - - - - - - - - Percentage of collections during month of February, 1924 on amount of outstanding account, on January 31, 192.4--_ _ _ _ _ _ _ _ _ _ _ _ _ _ __ Percentage of collections for same period last year_ _ _ _ _ _ _ _ _ _ __ Failures in the Tenth District during February were fewer by 39 and liabilities were less by $67,009 than in the month of January. However, there were 40 more failures and $813,697 more liabilities in February than were reported for the corresponding month in 1923. Failures and liabilities by Federal Reserve Districts are shown for February this year and last year in the following compilation by R. G. Dun & Co. NUMBER Districts 1924 1923 First, Boston. ______ 140 150 Second, New Yor 262 300 Third, Philadelphia _____ 82 58 Fourth, Cleveland.. - .. 135 121 Fifth, Richmon 128 109 Sixth, Atlanta. _______ 135 129 Seventh, Chicago_ 195 243 Eighth, St. Louis .... 81 97 Ninth, Minneapolis.... 85 72 TENTH, Kansas City.. ____________ 129 89 Eleventh, Dallas...____________________ 91 57 Twelfth, San Francisco.................. 205 145 LIABILITIES 1924 1923 $ 2,6o8,1n t, 4,637,721 2,032,864 3,738,945 Tota $35,942,037 $40,627,939 ... 1,730 1,508 5,594,337 2,376,178 2,824,143 3,456,937 2,361,030 8,733,400 1,489,558 1,216,850 1,968,081 1,280,548 8,883,288 1,024,670 6,293,852 2,452,891 4,029,704 3,081,365 1,008,734 2,217,789 1,154,384 2,104,596 Mercantile Wholesale trade at the principal distributing centers of the Tenth District during February made a very substantial gain over the volume of business in January, except jn drugs, but the February sales in all lines except furniture did not come up to those reported for the corresponding month in 1923. Accounts outstandings on February 29 were larger than they were at the close of the previous month except in groceries and millinery, these two lines showing increases. All lines reported outstandings less than one year ago. The summary follows: SALES No. of Stores Dry goods...... Groceries.-..... Hardware .. __ Furniture.___ Drugs._____ Millinery. __ 3 7 Feb. 1924 compared with Jan. 1924 6.5 J.3 OUTSTANDINGS Feb. 1924 Feb. 29, 1924Feb.29,1924 compared compared compared with with with Feb. 1923 Jan.31, 1924Feb.28, 1923 -1.2 -2.5 10.9 -1.8 --0.2 -4.4 -13.2 6.6 -5.3 IO 7-4 6 6 33-I 3.1 II.I -12.8 -13.1 ~4.4 -2.5 ,-5.8 5 20.3 -6.5 35.6 -15.2 Denver (4) Outside (II) District (18) Inc. J.2 Inc. 5.1 Inc. 5.8 Inc. 3.6 Inc. 0.2 Inc. I.I Dec. 0.5 Inc. 0.2 Inc. 2.1 Dec. 6.9 Inc. 3.8 Inc. 0.3 Inc. 8.6 Inc. 21.9 Inc. J,4.5 529.I 567.6 519.2 H 8.o 7.7 6.5 52.8 52.2 38.1 42.1 45-7 45.o Inc. II .3 464-5 35-5 4H Sales by wholesalers of dry goods were stimulated by a general reduction in the price of staple cotton goods. Business was good with the wholesale millinery houses, sales being larger than in the previous month, though smaller than in February last year. Large quantities of groceries going into consumption were indicated by wholesalers' reports, although the money value of goods sold did not quite come up to last year's February record. Hardware wholesalers were disappointed over the February sales. There was a fair increase over January but the greater activity expected did not materialize on account of weather and road conditions. However, better business was reported early in March, with indications that trade was beginning to come with a rush. The incubator and chicken supply business was good. The largest increase in sales during February in any line was reported by wholesalers of furniture, 33. 1% over January 1924 and 3.1% over February, 1923. Prompt deliveries from factories were mentioned. Prices were steady except on rugs which indicated a drop of 10% to 20% on the cheaper makes. Orders for drugs continued to be small and frequent. The reports said trade appeared not to have improved materially. With favorable crop weather implement dealers advise that, from a business viewpoint, conditions have improved considerably during the last sixty years. Sales of automobile tires fell off heavily during February,due in part to weather and road conditions. RETAIL: Eighteen department stores located in the principal cities of the Tenth District reported sales during February 3.6% heavier than in the corresponding month last year. Total sales for the first two months of 1924 stood at 0.2% above sales during the first two months of 1923. Department store stocks increased 14.5% during February over January and at theend of the month they averaged 0.3% larger than at the corresponding date last year. Retail trade was affected by unfavorable weather conditions in many of the smaller cities and towns, and in consequence reports on the volume of sales were spotted, but averaging about the same as a year ago. COLLECTIONS: Department store reports in the larger cities showed collections during February were 45% of outstanding accounts, as compared with 45.4% last year. Other retail reports, and those of wholesalers, reflected a somewhat similar trend, slow in some sections, fair in others and good in others, with the average running about the same as last year at this time THE MONTHLY REVIEW 4 Agriculture The..-March reports from states in the Tenth District are quite favorable to agriculture. The fall of moisture during February was abundant for current needs in practically all localities and the soil is in good condition for this time of the year. Plowing and oats seeding made fair progress with some interruption by snows and alternate freezing and thawing. The supply of farm labor at the beginning of March was sufficient, although in many sections there were indications of a shortage of labor late in the month and in April when spring work on farms is in full swing. , . _., ~.,, WINTER WHEAT: Reports from over the District early in March indicate that it has been a good winter for wheat sown last fall. In Kansas it was reported no apparent damage had resulted to the earlier wheat but later plantings were not at that time showing up so well. The hessian fly was said to be damaging wheat in some sections. In the South Central and Southwest sections, however, inspected wheat fields were found free of this pest. The Oklahoma State Board of Agriculture reported March I winter wheat condition in that state 82% of normal. Another report said wheat was beginning to need moisture in the western portions. Nebraska wheat showed little damage from low temperatures and the condition over that state was reported fair to good. The condition was fairly good in Colorado and Wyoming where moisture is ample and the season has been unusually favorable. Missouri reports were favorable. In parts of New Mexico some... damage to wheat was caused by cut worms, otherwise the condition in that state was fair. CORN: An increase in the acreage~to be planted to corn is indicated by reports from the states of the District. The large crop produced last year and the favorable prices prevailing has aroused great interest, and efforts to more than duplicate last year's crop are being put forth. Moisture conditions have been quite favorable and although in many sections the soil has been too wet for plowing, considerable progress has been made, and farmers in the Southern section are getting ready for their spring planting. The United States Department of Agriculture estimated in its report of March 18, there would be an increase of 3%, or more than 3,000,000 acres in the area planted to corn in the United States this spring. COTTON: While in the older cotton growing sections there is a tendency among growers to produce "more cotton to the acre" and "not more acres of cotton," by early planting and using practical methods of boll weevil control, the reports indicate that there is to be an increase of cotton acreage this year in the Southwest. Due to the high prices obtained for the 1923 crop many farmers in the North Texas and Oklahoma Panhandle counties contemplate making a test of their lands for cotton growing by planting a part of their acreage to that crop The U. S. Department of Agriculture reports say that some wheat land in the Northwestern part of Texas is going into cotton and new lands are being prepared for this crop. In Eastern New Mexico, where cotton was grown successfully last year, the outlook for this year is reported very encouraging. The soil is in excellent condition and indications point to a large increase in acreage. In Southwest Missouri the cotton acreage is to be increased, according to the reports. SUGAR BEETS: Refiners are advising Mountain States farmers to devote enough of their acres to growing sugar beets, so there may be produced at home the sugar which is now imported, and reports indicate the area planted this year will be from 20% to 30% larger than that of last year. One refining company reported an increase of 28% in acreage contracted. In Colorado it is expected the area planted will exceed 200,000 acres. In 1923 the yield from 165,453 acres was 1,962,177 tons of beets for which growers received $15,304,000, according to f the U. S. Department ._of Agriculture reports. In Wyoming reports indicate enlargement of the sugar beet area. In the North Platte valley of Western Nebraska more than 50,000 acres had been contracted by March l and it was reported that the acreage would exceed the total of 58,000 acres grown last year, while the acreage in the Arkansas Valley of Western Kansas is expected to be up to that of 1923. FRUIT: Reports indicate that fruit was damaged by the freezing weather in many sections of the District. Some of the reports said the crop of early peaches in sections had been injured. However, it is too early to make an accurate estimate of the damage to fruit, and too early to forecast the season's crop, until after the fruit :s free from late frost. Grain Marketings The movement of wheat to the principal markets in the Tenth District during February was 2,126,850 bushels or 37.8% heavier than in January, and 281,950 bushels or 3.8% heavier than in February of last year. Corn receipts in February showed large increases, 1,571,300 bushels or 18% over January 1924, and 4,536,400 or 78.8% over February 1923. The February marketings were the largest recorded for the four markets since 1919. Arrivals of oats, barley and kafu in February were very much greater and arrivals of rye very much less than in the previous month and the corresponding month in 1923. The February receipts were: Oats Corn Wheat 963,900 Kansas CitY·····-·····-4>179,6oo 3,5'.25,000 Omah J ,731,800 4,683,000 1,244,000 108,000 648,200 1,338,000 St. Joseph 96,000 Wichit 1,198,800 747,6oo Rye 26,400 54,6oo Barley Kafir 91,500 578,600 88,ooo 14,000 26,400 40,800 - - - --- --- --- --- --- February, 1924.____ .7,758,400 10,293,6oo 2,4u,900 81,000 219,900 619,400 January, 192+--·····5,631,550 8,722,300 1,898,300 93,6oo 182,800 490,500 February, 1923·--·•·7,476,450 5,757,200 2,136,100 202,000 74,650 245,800 FARM STOCKS OF GRAIN: The Department of Agriculture reported stocks of wheat on farms in the United States on March l were 21,603,000 bushels less than on the corresponding date last year. Farm stocks of corn on that date were approximately 6o,ooo,ooo bushels more than on March 1, 1923. Farm reserves of oats were larger than a year ago by 23,692,000 bushels. The reports from the principal grain growing states of the Southwest showed supplies of wheat on farms were reduced, and in fact the farm stocks on March 1 represented OI}ly 14.2% of the crop harvested last year. Stocks of corn on farms in this area on March 1 were 37.5% larger than a year ago and represented 36.2% of the crop harvested last fall. The following table shows the stocks of wheat and corn on farms in four states of the corn belt on March 1, for 192.4 and 1923: FARM STOCKS OF WHEAT FARM STOCKS OF CORN Mar. 1, 1924 Mar. 1, 1923 Kansa_.___ _ _ 10,878,000 20,886,000 Missouri ...........-- 6,830,000 5,435,000 Nebraska·----······· 5,650,000 n,369,000 Oklahoma.............. 3,630,000 2,508,000 Mar. 1,1924 34,202,000 74,8o7,ooo III,541,000 7,132,000 Mar. 1, 1923 29,517,000 Tota} _ _ _ _ 26,988,000 U. S....·-············-··I33,871,000 227,682,000 I,153,175,000 165,527,000 1,093,306,000 40,198,000 155,474,000 59,594,ooo 62,016,000 14,400,000 Stocks of wheat in public and private elevators at Kansas City, Omaha, St. Joseph and Lincoln on March 1, totaled 16,260,000 bushels, as compared with 8,839,000 bushels on March 1, 1923, according to Bradstreet's reports. For the United States stocks of wheat in elevators on March 1, were placed at 68,005,000 bushels as compared with 51,500,000 bushels on the corresponding date last year. 5 THE MONTHLY REVIEW FARM PRICES: Average farm prices of grain for the United States on February 15, this year, are shown by the Department of Agriculture reports as follows: 1924 Corn .......· - · · - - - - - - - - ~ .765 Whea.___ _ _ _ _ _ _ _ _ _ .981 Oats.______________ .454 B a r l ~ Y - - - - - - - - - - - .58 1923 f, .725 1.07 .424 .562 1917-21 $1.187 1.908 .654 1.035 1912-16 f, .654 .987 .43 .638 FLOUR PRODUCTION: Southwestern mills reporting weekly to the Northwestern Miller made 1,648>888 barrels of flour during the month of February. This output was 145,580 barrels less than was produced in January, but it was 217,629 barrels or 15.2% more than the output in February of last year. The figure for the mills reporting is estimated at 65% to 70% of the total flour production in Kansas, Nebraska, Oklahoma and Western Missouri. A summary of the February reports follows: Production Barrels Kansas City.........·-·- - - - - - - - - - 426,450 Omah 89,191 Salin 84,185 St. Josep 104,244 Wichit 151,444 Outisde.. _ 793,374 Percent Capacity 67.8 86.o February, 192"1--_ _ _ _ _ _ _ _ _ _ _ 1,648,888 January, 192 1,794,468 February, 192 1,431,259 6o.2 6o.8 5o.3 52.8 56.2 57.8 55.3 Live Stock Movement of all classes of live stock to the markets in the Tenth District declined heavily during the month of February Compared with January's totals, decreases were recorded for all classes of live stock. The February supply of cattle was the lightest for any month since April, 1922, and the supply of calves was the lightest since April, 1923. Arrivals of sheep were light and the February total was 38,1 l 1 below the total arriving during February of last year. The market receipts of hogs at the six markets, however, was the heaviest for any February of record and were 48,026 head greater than receipts for the month last year. Horses and mules received at these markets exceeded the February 1923 total by 2,292 head. The receipts at the six markets: Cattle Calves Hogs Kansas City 123,795 Omaha .. 124,163 St. Joseph .... _.. 43,128 Denver 21,677 Oklahoma CitY···········-····-· 13,767 Wichita .... ___ 15,742 22,109 5,45° 250,264 425,85'2 206,080 57,424 24,669 74,727 95,99 2 'l.07,427 106,870 122,039 1,303 4,647 Horses Mules 4,7o4 1,325 1,462 2,057 797 2,398 February, 1924••······-·-····•342,272 January, 192 - 82,222 February, 1923 _ _ _ _ 370,474 45,271 1,039,016 70,865 1,179,676 50,n2 990,990 538,278 586,281 576,389 12,743 15,929 10,451 5,6o6 2,892 5,9 1 9 3,295 Sheep During the month the cattle market showed decided strength, particularly on heavy finished steers, which were in good demand. Hogs showed a net gain in price of 15c to 20c for the month, best fat hogs selling at the end of the first week in February at $7. 50 per hundred, which to that time was the highest price on the Kansas City market since October. Sheep and lambs advanced $1.35 to $2.00 a hundredweight over January prices, due to the light supply, best fat lambs reaching 'f,15.65, the highest price paid since last June. The demand for horses and mules developed considerable strength with spring activities approaching. There was a good demand for work teams which appear to be coming back for farm work. The countryward movement of stockers and feeders ~declined in about the same proportion as the receipts fell off. Four markets reporting-Kansas City, Omaha, St. Joseph and Denver-sent to the country during February 81,783 cattle, 2,853 calves, 24,776 hogs and 64,400 sheep. Compared with shipments to the country of stockers and feeders in February, 1923, there were decreases of 16,889 cattle, 3,102 calves, 3,622 hogs and 5,740 sheep. MEAT PACKING: Fewer head of llve stock were purchased for slaughter at Western packing centers in February than in January. Compared with purchases by packers in February of last year there were slight decreases in the number of cattle, hogs and sheep purchased and a slight increase in the purchase of calves. The reports from the six markets show purchases as follows: Kansas City Omaha_ .. St. Joseph.--··-··--···-·-···· Denver Oklahoma City Wichita __ .. _ Cattle 71,778 73,875 25,977 8,155 9.819 4,129 Calves 19,895 3,619 4,702 1,669 2,203 318,074 144,095 45,619 20 ,599 69,833 February, 19 January, 1924................ February, 1923 .. 193,733 59,926 204,524 37,665 50,7II 36,556 756,321 909,864 778,473 5,577 Hogs I 58,101 Sheep 79,426 145,758 85,435 16,122 1,005 2,892 330,638 358,632 334,648 The demand from Eastern packers was a stimulating factor in the live stock markets at the end of the month. The demand was confined largely to the better class of fat steers. The fresh meat trade during the month was somewhat irregular, pork prices showed sharp fluctu·ations and at the close of the week ending February 23 were slightly higher than in the earlier part of the month. Stocks of pork and lard in Kansas City increased 5,773,900 pounds during February and on March 1 were 50,156,700 pounds. This total, however, was 9,355,900 pounds less than on the corresponding date last year. Crude Oil Production of crude oil in Oklahoma and Kansas of the MidCon tin en t field and Wyoming and Colorado of the Rocky Mountain field averaged 6o9,386 barrels per day during the twentynine days of February, against 581,370 barrels per day during the thirty-one days of January and 609,796 barrels per day during the twenty-eight days of February last year. Oklahoma, Kansas and Colorado reported increases in daily average production over January, but each of the three states showed smaller daily averages than in February last year. Wyoming's daily average during February was 5,333 barrels less than in January, but exceeded the daily average in February last year by 34,144 barrels. Production for the entire month in the four states was 17,672,200 barrels against 18,022,000 barrels in January and 17,074,000 barrels in February, 1923. The following summary shows production for each of the four states for three periods: Oklahom Kansas ........ Colorado...-·-··-· Wyoming...... Tota Oklahoma.. __ Kansai .. Colorado.. _ Wyoming GROSS PRODUCTION *Feb., 1924 ..Jan., 1924 11,800,6oo II,659,000 2,111,000 2,048,500 5,220 5,500 ..... 3,817,880 4,246,500 **Feb., 1923 12,216,000 2,122,000 5,800 2,730,200 18,022,000 17,672,200 17,074,000 DAILY AVERAGE PRODUCTION *Feb., 1924 **Jan., 1924 **Feb.,1923 .....406,917 376,II'l 436,296 70,638 68,097 75,786 180 177 207 131,651 136,984 97,507 Total.....·--··---------6o9,386 *-Estimated, American Petroleum Institute. **--Official, U.S. Geological Survey. 581,370 6 THE MONTHLY REVIEW The reports on field activities showed an increase of 193 wells completed and an increase of 85,861 barrels daily new production over January. The record of completions, however, did not come up to that of last year by 92 wells, although the daily new production for February this year was 4,619 barrels above a year ago. The February completions were the largest since last September and the February daily new production brought in was the largest since last July. Very little change was noted in the number of rigs and wells drilling, indicating that weather conditions interfered very materially with new development during the month. Field operations are shown in the following summary: Oklahom Kanaa Wyomin Wells Completed 389 Bbls. Daily New Prod'n 117,191 6,257 77 30 February, 192 96 January, 192 303 February, 192 588 4,192 127,640 41,779 123,021 Rigs-Wells Drilling 1,257 231 407 1,895 1 ,959 2,322 The consolidated statement of the Western Petroleum Refiners Association showed 85 refineries with 352,-100 barrels daily capacity of stills in operation in Oklahoma and Kansas during the week ending March 1. The output of finished products for the week for the two states was: Gasoline 19, 1 II ,201 gallons, Kerosene 4,808,248 gallons, gas and fuel oil 22,077,363 gallons. Compared with the output for the week ending February 2 these totals indicate an increase of 1,142,680 gallons of gasoline, a decrease of 638,255 gallons of kerosene and a decrease of l ,237 ,484 gallons of gas and fuel oil. Refiners' stocks of finished products on hand March 1 in Oklahoma and Kansas, reported by the association, were: Gasoline 101,038,040 gallons, compared with 75,182,938 gallons on February 2; kerosene n,428,734 gallons compared with 9,437,126 gallons on February 2; gas and fuel oil 58,255,719 gallons compared with 55,971,993 gallons on February 2. Mining ZINC AND LEAD: During the month of February there was a steadily advancing market for both lead and zinc ores in the Tri-State district embracing the states of Missouri, Oklahoma and Kansas. Shipments of zinc ores averaged 2,000 tons per week over shipments during January. The market range for zinc blende ran from $41.50 for the poorer grades to '$47.00 for high grades. The average price for the month was '$44.60. Shipments of zinc for the month aggregated 58,194 tons, or an average weekly shipment of 14,548 tons. The value of zinc shipped from the district during February amounted to $2,595,623. During February the lead ore price increased $7.50 per ton. The month opened with lead ores selling for $n7.50 and closed at $125.00. The average weekly shipment was 1,763 tons, or a total of 7,053 for the month. The average price for the month was $120.11. A comparison of prices and shipments during February 1924 with February 1923 is here shown: Z1NcOus February 19 February 192 LuoOus February 19 February 192 Average Price Tona Shipped $ 44.6c 58,194 4 2·55 57>4 2 5 120,II 7,o53 109.34 7,077 At the close of February conditions were very much improved over those prevailing in January, when roads were almost impassable. Considerable activity is being shown in prospecting and leasing in the older camps, especially where lead is believed to exist. COLORADO METAL MINING: Reports indicate that the mining revival which started about a year ago is growing proportion, that many new properties are being opened in the various districts of Colorado, and that there is increased activity in the older camps. Production from the Cripple Creek mines, as an illustration, is reported at least 25% greater than in the corresponding month in 1923, while shipments of concentrates from Silverton are about double those of a year ago and shipments from Telluride are also larger than a year ago. Reports from other districts indicate a similar tendency, all showing increased output. All reports reflect a healthy condition during the winter months, forecasting a busy spring and summer mining season. BITUMINOUS COAL: Mining: operations during February averaged 55.7% of full-time capacity for the six soft coal states of the Tenth District, compared with 71.9% in January and 51.8% in February, 1923. All states reported heavy loss of operation on account of "no market.,, The reports from the six states on operations during February show losses from fulltime capacity as follows: Wyo. Colo. Kans. Loss due to: Transportation disability. 7.5% 1.6% Labor shortag 4.9 0.'l Strikes.. 'l,0 Mme Disability 10.4 u.o No MarkeL---------·--31·7 2 3·7 57-7 39.7 0,1 53· 1 3.0 36.3 Total loss, all causcs.__ 41.2 Per Cent Production.. ____ 58.8 72 •3 4 2 ·3 43.'1 46.8 55-1 Mo. N.M. Okla. o.8% o.8 0.9 1.8% o.6% 1.5 J.'l 2.0 II,0 1.5 4.0 Diat. -- -- -- -- -- -- -5 ,.8 51.z 44·3 2 7·7 29.1 57-7 7o.9 The United States~GeologicaCSurvey reports for- the"'entire country show soft coal mined during the calendar year April 1, 1923, to March 1, 1924, totaled 503,467,000 tons, which compares with 385,688,000 tons for the corresponding period in the 1922-1923 coal year. The reports indicate a general softening of the demand for soft coal, due to the passing of the winter season. Stocks of soft coal in consumers hands on January 1, 1924, were approximately 62,000,000 tons, 72% larger than on hand January 1, 1923, and 29% larger than on January 1, 1922. Employment Severe weather caused a curtailment of employment during February in most parts of the District but improvement was noted during the latter part of the month. The United States Employment Service for the District No. 4 reported for February: ·' Skilled labor is in slightly better demand. Common labor is still plentiful. Lead and zinc mining and railroad shops also register increased employment over January. Shoe factories, meat packing and other major industries employing normal forces for this season. Surplus of male and female office help." There are large construction projects under way or in contemplation which are expected to absorb the supply of both skilled and common labor as soon as weather conditions permit a resumption of out-door activities. Normal employment for this time of the year is reported in flour milling, meat packing, and other large industrial establishments. 7 THE MONTHLY REVIEW Building STATEMENT OF CONDITION FEDERAL RESERVE BANK OF KANSAS CITY, INCLUDING BRANCHES Permits issued in eighteen cities of the Tenth District during February were 2,217 in number, 868 or 64.4% more than in January of this year and 147 or 7.1% more than in February, 1923. The estimated cost of February buildings, aggregating $6,638,225 for the eighteen cities, exceeded that of the previous month by $1,183,'.298, or 21.7%, The February estimated cost, however, was $692,523 or 9.4% short of the total for the corresponding month last year. The building record for February, 1924, with percent of increase or decrease computed on estimated values, follows: RESOURCES No. Permits 77 Casper, Wyomin Cheyenne, Wyoming 29 Colorado Springs, Colorado...... Denver, Colorado Hutchinson, Kans Joplin, Missouri-.. Kansu City, Kans Kansas City, Missour Lincoln, Nebraska __ Muskogee, Oklahoma_ •. Oklahoma City, Oklahom Okmulgee, Oklahom Omaha, Nebrask JOO 586 38 IO 94 275 6o 14 136 16 166 Pueblo, Colorado__ St. Joseph, Missouri_ Topeka, Kans Tulsa, Oklahoma.. __ Wichita, Kans 86 26 February, 192 February, 192 ,217 ,070 Estimated Cost $ 175,150 61,975 125,328 1,53 2,35° 45,090 12,300 168,142 1,080,650 162,6o3 22,250 1,503,425 43,350 654,275 91,716 26,025 %Inc or Dec. -II.8 63.2 -13.4 49·5 -19.8 61.8 -28.I -35.6 28.6 -81.1 129.5 -29.8 -58.2 120.9 -68.3 II2 173,526 36.9 175 433,480 326,590 -35.3 -35.4 $6,638,225 ---9·4 217 7,330,748 Life Insurance Life insurance written during the month of January by companies carrying 88% cf the ordinary insurance in force in the United States totaled $38,795,000 for the states which constitute the area of the Tenth District, which was $878,000 less than the insurance written in January, 1923. Colorado, Kansas, New Mexico and Wyoming showed increases in new insurance written, while Missouri, Nebraska and Oklahoma showed decreases, The total insurance written in the seven states during the entire year 1923 was $539,899,000 according to the Life Insurance Sales Research Bureau. Gold with Federal Reserve agent Gold redemption fund with U.S. Treasury-............ At Close of Business Mar. 5, 1924 Mar. 7, 1923 $ 52,779,555 $ 55,06o,700 2,706,845 1,429,583 Gold held exclusively against F. R. notes·--····· 55,486,400 Gold settlement fund with F. R. Board.--·············· 37,822,936 Gold and gold certificates held by bank.. _ _ _ 3,334,319 56,490,283 32,676,064 2,980,630 Total gold reserves.. _ _ _ _ _ _ _ __ Reserves other than gold. .... _ _ _ _ _ __ 96,643.655 4,7 21 , 174 92,146,977 4,188,700 Total reserves ........ _ _ _ _ _ _ _ _ 101,364,829 Non-reserve cas 2,612,200 Bills discounted: Sec. by U.S. Government obligation..,___ __ 3,223,850 Other bills discounted........ _ _ _ _ _ _ __ 23,746,868 96,335,677 Total bills discounte....___ _ _ _ _ _ __ BilJs bought in open market-.. _ _ _ _ _ __ U. Bonds S. Government ____ _ _securities: _ _ _ _ _ _ _ __ __ 26,970,718 10,526,857 18,783,971 1,076,66o 331,900 8,775,300 1,574,000 3,147,850 30,151,400 12,413,000 Treasury n o t ' - " ' - - - - - - - - - - - Certificates of indebtednes.,___ _ _ _ _ __ 3,907,584 5,415,874 13,368,097 Total U. S. Government securitie...__ __ 10,681,200 Municipal warrant..,___ _ _ _ _ _ _ _ _ _ _ _ __ Total earning assets...... _ _ _ _ __ 48,178,775 5% Redemption fund-F. R. Bank notes·--······-·Uncollected items _ _ _ _ _ _ _ _ _ _ __ 38,735,184 Bank p r e m i s . ~ - - - - - - - - - - - - 4,594,543 740,322 All other resources--····-- - - - - - - TOTAL RESOURCES_····-----$196,225,853 LIABILITIES F. R. notes in actual circulation j 65,198,940 F. R. Bank notes in circulation-net.---··-··············· _ __ Deposits: Member Bank-reserve accoun~----- 77,004,395 Governmen.___ _ _ _ _ _ _ _ _ _ _ __ 1,477,210 Other deposits_ _ _ _ _ _ _ _ _ _ __ 335,424 65,572,881 200,000 40,536,202 4,790,247 1,244,657 j 65,233,685 1,895,275 82,459,573 2,247,842 1,700,96o Total d e p o s i t ~ - - - - - - - - - 78,817,029 Deferred availability items _ _ _ _ _ _ __ 37,503,934 Capital paid i,.___ _ _ _ _ _ _ __ 4,544,6oo Surplus. _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ 9,495,54° 665,810 All other liabilities...· - · · - - - - - - - 86,408,375 44,405,119 4,655,250 9,488,300 501,244 TOTAL LIABILITIES_ _ _ _ _ _ j196,225,853 Ratio of total reserves to deposit and F. R. note liabilities combine • .......... Contingent liability on bills purchased for foreign correspondents..· - - - - - - -- - - 493,174 Total clearings for wee $169,123,064 Total number of items handled.......... 1,149,672 1,222,229 $196,498,048 1,189,325 Business Conditions in the United States Employment at industrial establishments increased in February and the output of basic commodities was slightly larger. Distribution, both at wholesale and lretail, continued large. Wholesale prices were somewhat higher and there was a further increase in the volume of borrowing for commercial purposes. PRODUCTION: The Federal Reserve Board's index of production in basic industries, adjusted to allow for length of month and other seasonal variation, increased less than 1 % in February. Production of pig iron, steel ingots, and flour increased, while mill consumption of cotton and production of cement and lumber declined. Factory employment advanced 1% in February following successive decreases during the three preceding months. Increases in working forces were reported by most industries and were particularly large in iron and steel plants, automobile factories, and textile finishing establishments. Fuller employment through reduction of part time work is indicated by an increase of over 5% in average weekl y earnings. Building activity was slightly less than in January though contracts awarded were 7% larger than a year ago. TRADE: Railroad shipments in February were in greater daily volume than in January and carloadings of practically all important commodities were larger than a year ago. The daily average volume of wholesale business increased about 5% in February, but was slightly smaller than a year ago. Sales of meat, dry goods and hardware were larger than in February, 1923, while sales of shoes were smaller. Department store sales in February averaged about the same daily volume as in January and about 8% more than a year ago, while merchandise stocks 8 THE MONTHLY REVIEW PRODUCTION IN BASIC lNDUSTRIES WHOl£SAlE PRICES Pf"C!NT \$0 PeR (Eltf 200 soi----t----t----+----1----1---~so ,oo o--------L---1---.L..--~-_JO 1919 0 1920 t921 1924 1923 Combination of 22 Individual Series for Seasonal Variation PER CEN 300 300 ... _r-1 ~ '\ -- .____l.J ... 100 0 1920 1919 1921 1922 f'ACT01'Y EMPLOYMENT ,so t,IILllONS OF 0Ol.LA"S Ml~LIONS Df' OO~LAIU 4000 ~~ \ _/ ~ ---- 1924 RESERVE BANI( CREDIT ICirallT '-""""' 1923 Index Numbers of Wholesale Prices U. S. Statistics of Labor (1913-100 Base Adopted~by,..Bureau) (1919-100) 100 200 """ ~ 50 50 0 0 19J9 1920 1921 1922 t923 Index of Employment in Manufacturing Industries (1919 Average - 100 Per Cent) at these stores at the end of the month were 6% above last year's level. Business of mail order houses and chain stores also showed increased activity in comparison with January. PRICES: Wholesale prices, as measured by the index of the Bureau of Labor statistics, advanced slightly in February. Prices of fuels, metals and building materials increased, while prices of farm products, clothing and chemicals declined. During the first two weeks in March price declines occurred in wheat, cotton, silk, hides and rubber, and price advances in hogs, copper and crude petroleum. BANK CREDIT: The volume of borrowing for commercial purposes at member banks in leading cities in the early part of March continued the increase which began in the latter part of January and on March 12 total loans of the reporting banks were higher than at any time since the seasonal peak at the 1919 1920 192t 1922 192.3 192't 800 Member Banks in Leading Cities turn of the year, and about $275,ooop:::,o higher than a year ago. At the Federal Reserve banks during the four week period ending March 19 a further decline in the volume of discounts for member banks and of acceptances was offset by an increase in the holdings of United States securities, so that total earning assets were at about the same level as in February. Federal Reserve note circulation continued to decline, while the total money in circulation increased. Easier money conditio were reflected in a slight decline in rates for commercial paper to 4½% and also in lower rates for bankers acceptances and reduced yields on Treasury Certificates. The March offering of $400,000,000 of one-year Treasury Certificates bearing interest at 4%, as compared with 4¼% on a similar issue sold in December, was over-subscribed.
@FedFRASER