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THE MONTHLY REVIEW Of Agricultural, Industrial, Trade and Financial Conditions in the Tenth Federal Re.uroe DisJricJ FEDERAL RESER V ·E BANK OF KANSAS CITY M. L. McCLURE, Chairman and Federal Reserve Agent A. M. McADAMS, Assistant Federal Reserve Agent and Secretary Vol. 11 KANsAs Crrv Mo., E VIDE CE of general business stability in the Tenth District and a volume which compared favorably with that at similar periods in former good business years was reflected by statistical reports, now complete for the first two months of this year. Following the seasonal quiet in the early weeks of the year there was some quickening of activi:ty ~t the near approach of Spring, and in March business in some lines was a little ahead but in most lines behind that reported at the corresponding time last year. The"course of business in the Dis'trict in January and February was indicated by the volume and the Ute at which funds were checked out of banks by depositors. During the twentythree banking days in a four-week period ending March 3 payments by check in twenty-nine leading cities was at the rate of $51,080,782 per day. During the preceding four weeks, ending February 3, in which there were twenty-four banking days, the average was f,50,975,041 per day. During the four-week period ending March 4, 1925, the average for twenty-three banking days was $50,934,565 per day. The trade reports showed buying by retailers from wholesalers was steady, although the bulk of merchandise distributed was in small lots for quick delivery. Sales reported in dollars by wholesalers of dry goods, hardware, furniture and millinery were larger in February than in January. Sales of dry goods in February were also larger than in February, 1925, but in other reporting wholesale lines there was some slackening and the volume was not up to that reported a year earlier. Retail trade during February, as reflected by dollar amounts of sales at department stores in leading cities, was 3.4 per cent less than in February last year. Sales from January I to March 1, this year, were 2.2 per cent under sales during the same period last year. Unofficial reports indicated March trade was quiet and not up to the expectations of retailers. APRIL 1, 1926 No. 4 STATISTICAL RECORD, TE TH FEDERAL RESERVE DISTRICT Returns for February 1926 compared with January 1926 and February 1925 Per Cent Change Feb., 1926 Feb., 1925 Jan., 1926 Year Bank debits, 29 cities ...... '/,1,174,858,000 'f,1,223,402,000 $1,171,495,000 0.3 Clearings, F. R. Bank.... '/, 809,969,000 'I, 932,787,000 '/, 791,058,000 2.3 I terns handled ............ 5,160,840 2.9 5,308,263 5,689,267 1.2 Deposits, 69 banks ........ '/, 646,203,000 '/, 636,653,000 '/, 638,679,000 Loans, 69 banks .............. '/, 443,3 23,000 '/, 438,322,000 '/, 449,922,000 -1.5 12.6 Investments, 69 banks....$ 185,755,ooo '/, I 80,790,000 '/, 165,003,000 Business failures ............ -3.3 87 147 90 1,093,9 15 Amount of liabilities.. '/, 1,348,728 '/, -35.6 7°3,4 10 'I, 2,880 -23.9 Bldg. permits, 18 cities .. 1,362 2,191 Construction cost........ '/, 6,785,087 '/, 4, 275, 298 '/, n,207,400 -39.5 2,549,000 -15.6 Coal produced, tons ........ 2,151,000 3,035,ooo Crude oil produced,bbls. -4.4 19,666,000 18,715,000 17,890,000 Flour produced, bbls ....... 1,553,342 1,721,669 1,797,756 -13.6 Grain receipts,6 markets: Wheat, bus ................. 7,618,250 -25.8 5,649,200 6,244,300 . -4.1 Corn, bus ..................... 7,104,700 5,176,450 4,962,700 Oats, bus ..................... 1,530,200 1,873,000 -37.I 1,177,700 Live stock receipts, 6 markets: Cattle.......................... -4.9 332,042 4o6,59 2 349,234 Calves.......................... 63,210 50,646 58,973 -14.I Hogs............................ 1,008,478 -36.3 838,912 642,034 -2.0 580,122 Sheep ........ 568,528 497,335 Horses and mules ........ 4.1 16,490 14,710 17,158 Meat packing, 6 centers: 4.6 Cattle.......................... 206,717 232,809 197,534 48,820 Calves .......................... ~.I 50,093 44,365 Hogs............................ 636,645 794,915 -41.7 463,555 22.3 Sheep ............................ 292,351 3 26,035 357,546 Ore shipped, Mo.-Kans.Okla. : 14.2 62,580 Zinc, tons .................... 67,485 77,093 11.9 Zinc, value..................'/, 3,462,463 '/, 3,533,3 20 3,95 2,677 '/, I 5.1 10,695 Lead, tons .................... 12,306 7,859 1,358,150 Lead, value .................. '/, 1,462,6o9 '/, 944,842 '/, 7.7 year, even though market supplies of both classes of live stock The outstanding feature in mineral production during Feb- fell off. ruary was an increase over January in the daily average flow of The diminishing supply of wheat on farms and at the markets crude oil, but the month's output was smaller than in Febru- was also reflected in a decrease in production of flour at Southary of last year. There was some increase in drilling operations west mills during February as compared with the corresponding over the preceding month and a year ago. Due to seasonally low month last year. On the other hand, with farm supplies of corn demand for petroleum products, refinery operations were slight- exceeding those of last year, marketi_ngs were smaller during ly reduced. Production of zinc and lead ores ran ahead of a year February than in January and a year ago, which was attributed ago, but March reports indicated some curtailment on account to this year's low prices. of declines in prices. Activity at the soft coal mines slackened The agricultural situation at the beginning of March was quite during February and production fe11 below that of a year ago. favorable. Farm work was well advanced, winter grains were Pork packing at the leading market centers of this district in good condition, and prospects were favorable for a year of was nearly 42 per cent behind February of last year and clearly large production. reflected the large decrease in the supply of hogs. Slaughter of . The live stock indus~ry was i?- strong position in Marc~. Adcattle and sheep for the dressed meat trade was heavier than last Justments of cattle prices to higher levels was encouragmg to This Copy Released For Publication In Morning Newspapers March 29 2 THE MONTHLY REVIEW cattlemen and reports indicated a tendency to restock herds on by Secretary Mellon, Were $647,243,900, of which $494,898,1co ranges. Sheep men reported a good lamb crop in prospect and was allotted. All subscriptions on amounts not exceeding more sheep on farms than a year ago, but there was comparatively $50,000 were allotted in full, while allotments on subscriptions little contracting of both lambs and wool as compared with a in amounts over $50,000 were made on a graduated scale. The year ago. Efforts to increase the hog supply by withholding subscriptions and allotments were divided among the twelve sows from the markets and more extensive breeding were re- Federal Reserve Districts, as follows: ported. Subscriptions Subscriptions Building operations during the first two months of the year Allotted Federal Reserve Districts Received 1, 69,110,700 were moderately large, but the value of permits issued was con- First, Boston.·-----···-··-·-···--··--·······--------$ 80,855,700 98,601,600 siderably less than for the first two months of 1925. The labor Second, New York...·----------·····-··---·----····--··-----·--·- 171,108,600 67,061,300 Third, Philadelphia..........................·--······-·····-···· 77,456,300 outlook was good, with industrial employment in cities expand- Fourth, Cleveland........ ·-··················-·················-· 67,819,800 51,090,000 ing and the call for farm help increasing with the advance to- . Fifth, Richmond......·----·--·········---- 20,740,400 28,303,200 26,945,100 Sixth, Atlanta........... ·--·------------ -- - 28,835,100 ward spring. Banking and Credit Demand for credit at the banks in this District increased during February with the seasonal expansion of activities. Investments by banks early in March reached the highest level of record. Deposits continued heavy, with the gross at reporting member banks on March 3 showing an increase of 1.5 per cent over a month earlier and an increase of 1.2 per cent over the corresponding date last year. Under the conditions of money supply rates were the same as those prevailing for several months past. The situation in this District with respect to banking operations, as a whole, is reflected by the combined reports of 69 member banks to the F ederal Reserve Bank of Kansas City. The figures showing the principal resource and liability items of these reporting banks are here shown for March 3, 1926, and also for February 3, 1926, and March 4, 1925, for compari son: Mar. 3, 1926 69 Banks Loans and Discounts ..... ___________________ 'f,443,323,000 Investments_·····---·------------------------------ I 85,755,000 Loans, Disc. and Invest. _____________ _____ 629,078,000 Demand Deposits_···-·······------------------ 496,034,000 Time Deposits-----··-·······-·····-·····-····---· 148,365,000 Government Deposits ........ ·-··········-· 1,804,000 Total Deposits ...·--···-·-··-· ---···-·----······ 646,203,000 Reserve Balance.....·- - - - ··-'· 53,760,000 Feb, 3, 1926 69 Banks 'f,438,322,000 180,790,000 619,112,000 491,397,000 143,475,000 1,781,000 636,653,000 56,557,000 Mar. 4, 1925 71 Banks $449,922,000 165,003,000 614,925,000 500,806,000 137,216,000 657,000 · 638,679,000 55,581,000 The weekly condition statements of the F ederal R eserve Bank of Kansas City and branches as of March 3 showed increases in the amount of discounted and purchased bills over amounts held on February 3 and on March 4 last year. Subsequent weekly statements in March showed a perceptible decline in the reserve bank's bill holdings, although the totals reported- and also the totals of United States Government securities held- exceeded those reported at the corresponding dates in 1925. The principal items contained in the statement of the F ederal Reserve Bank of Kansas City as of M arch 3 are here compared with those reported on February 3 of this year and March 4 of last year: Mar. 3, 1926 Gold Reserves .... ...·-··-········-··-··········-·'f, 79,693,659 Total Reserves .............·-·········-······-·· 84,454,389 Bills Discounted ...... ... ·--·--················· 22,558,444 Bills Purchased.·-· ··-·-·---··-····-······-·-··-· 14,738,737 U. S. Gov't Securities_· ··-- ··-··-·········· 33,959,700 Total Bills & Securities----------·---·-···· 71,696,181 Total Resources.·-········· ······-···---·----·- 212,906,800 F. R. Notes in Circulation _··-·········· 65,165,200 Total Deposits ...... ··-· .... ············-··---·· 90,080,495 Reserve Ratio.·-·-·-· -·--···-··-·-··············· 54.4% Feb. 3, 1926 'f, 89,360,620 94,326,180 15,II 5,801 14,441,388 35,6o7,700 65,520,889 206,459,979 66,642,750 91,6o9,652 59.6% Mar. 4, 1925 'f,113,345,761 II7,236,212 4,577,865 12,576,459 23,959,800 42,076,124 213,594,729 67,047,940 9 I ,260,68 3 Seventh, Chicago...•...... ·-·-··-· - - - Eighth, St. Louis ......................................·-·-··-···-· Ninth, Minneapolis ............... ·--······--·······-·-····--··-· TENTH, KANSAS CITY..... ·--···---·-·····-·-····--··-· Eleventh, Dallas.... _ __ _ _ _ _ Twelfth, San Francisco .. ·-·--·····--·-·-·------·----···---··-· 54,373,200 22,017,100 16,438,900 22,402,100 17,620,400 6o,013,500 48,655,200 19,348,100 13,894,7oo 18,087,100 12,920,400 48,443,5 00 Totals ................ ·-·-················--·---··--·---·--···--·--·········'f,647,243,900 Savings in Banks Continued steady increase in the volume of savings deposits and also in the number of accounts, was reported. In fifty-six banks located in leading cities of the district the March 1 reports showed an increase in deposits of 1.3 per cent over the total reported on February 1, and an increase of 2.6 per cent over the total on March 1, 1925. The number of savings accounts in fifty-two banks on March 1 was o.8 per cent larger than a month earlier and 4 per cent larger than a year earlier. The record of savings deposits and accounts follows: DEPOSITS Banks Mar. 1, 1926 Denver, Colo ......... ---·---··--------· 6 1, 49,214,675 Kansas City, Kans ........... ·-···- 4 2,899,985 Kansas City, Mo._·······-··--······· 9 15,044,772 Lincoln, Nebr............... ·---·--·-· 3 2,925,240 Oklahoma City, Okla·-··-·--·--·· 8 7,888,817 Omaha, Nebr........................... 6 7,440,752 St. Joseph, Mo ..... ·-·····----·····---- 6 8,886,600 Tulsa, Okla.········---··-·----·--········ 6 12,057,283 Wichita, Kans ..... ·---·- -·---·---···-- 5 4,395,103 Other Cities .... _......................... 3 976,501 Feb. 1, 1926 'f, 48,204,485 'f, 50,483,405 2,959, 149 15,041,203 2,898,266 7,828,239 7,366,151 8,9II,719 II,698,797 4,418,820 998,448 2,627,197 14,169,581 2,790,410 9,882,379 7,450,346 10,210,532 7,412,010 2,849,420 l,042,II6 Total...................... ·-···--·-··-··--····56 'f,110,325,277 'f,108,917,396 'f,111,729,728 Mar. 1, 1925 ACCOUNTS Banks Denver, Colo ..................-··--···· 6 Kansas City, Kans ............ ·-··· 3 Kansas City, Mo .............. ·-····· 8 Lincoln, Nebr......... ·-·····--·--·-···- 3 Oklahoma City, Okla.·-----·----- 8 Omaha, Nebr.. ·-········-··--···--·--·· 5 St. Joseph, Mo ...... ---···-··--------·· 6 Tulsa, Okla ........ ·--·-----··-·----··-··- 5 Wichita, Kans ..... ·----··············· 5 Other Cities ....... ·-······-·-··--··--·· 3 1, 1926 101,017 8,330 76,337 14,789 23,253 37, 109 20,638 23,419 16,031 3,697 Mar. Feb. 1, 1926 Mar. 1, 1925 100,801 94,930 8,281 7,931 75,182 73,385 14,74 2 14,965 22,849 20,312 36,984 38,040 20,711 21,527 23,141 15,946 21,256 15,684 3,406 3,989 Total .............. ·-·····---··--------···-····52 74.0% Government F inancing in March The Government's March offering was an issue of 3¾ per cent 30-year Treasury Bonds, dated March 15, 1926, maturing March 15, 1956, and redeemable at the option of the Secretary of the Treasury on and after March 15, 1946. At the closing ot the books at the Federal Reserve Bank of Kansas Citv on March 15 this district's quota was greatly oversubscribed. Total subscriptions to the issue in the United States, announced Deposits to postal sayings accounts in 22 cities of the Tenth District, amounting to '$6,975,201 on the last day of January, increased $112,945 during February to $7,088,096 at the close of the month. These 19 cities reported increases: Casper, Denver, East Las Vegas, Gallup, Guthrie, Hartshorne, Henryetta, Kansas City, Kansas, Lawton, Leadville, Muskogee, Oklahoma City, Okmulgee, Pit~sburg, Pueblo, Shawnee, Sheridan, Sterlir.g and Wichita. Three cities reporting decreases were Cheyenne, Kansas City, Missouri, and Omaha. 4 THE MONTHLY REVIEW Payments by Check Clearing houses in twenty-nine cities of this district reported debits by banks against individual accounts, or payments by check, aggregated $1,174,858,000 in the four weeks ending March 3. This total was $48,544,000 or 4 per cent less than that for the preceding four weeks ending February 3, but was $3,363,000 or 0.3 per cent greater than the amount reported by the same clearing houses for their members in the four weeks last year, ending March 4. In ten of the twenty-nine cities, whose reports are received weekly, the amount of debits to individual accounts during the four weeks ending March 3 was larger .than that for the like period last year. The amount debited to individual accounts during the four-week periods in 1926 and 1925 in each of the twenty-nine cities is here shown: Atchison, Kans·-- --------·········----'$ Bartlesville, Okla.·-·----······-···-···············Casper, Wyo.·---·-·-···················-······-·····-Cheyenne, Wyo. ____ ___ ..... ·-·····-···-··--····'.--Colorado Springs, Colo.·-·-···········-·-······ Denver, Colo·-··-·-·---···-···-·······-·-·-··--··--··-Enid, Okla.·--------·---·--···-··--·-·-----····--··-----Fremont, ebr .______ -· ·--··-··------···-·---·-·-··-Grand Junction, Colo..·----·-··----··--··-··--Guthrie, Okla·-------------··---·-··----------·----·-Hutchinson, Kans. ______ ·--· __ ·- .. ·---··--·-····-Independence, Kans· --------·-·-----·-··------·· Joplin, Mo· ----·----·------·---··-----·--·-----·--··-·--Kansas City, Kans· --·--··-···-----···--·-····--Kansas City, Mo· -----·--··----·------··-···-----·Lawrence, Kans·----------------·······-··--···---·Lincoln, ebr· ---- -- ----····--··--·-········--···-···McAlester, Okla·------·-··--·-·-----···-·-------··-Muskogee, Okla·---- --------·--·-··--·------···----Oklahoma City, Okla ..·----·------·----·---···Okmulgee, Okla·---------··--·-·-----··---···----··Omaha, Nebr. __________ .. __ ·-·-------·----------···-Parsons, Kans·---------·--···-·---·-·-·-----·-----·-·Pittsburg, Kans·----------·-·--·------·---·-·------Pueblo, Colo---------·---------···---·-----·-·------·-St. Joseph, Mo· ---·---·---··-----··--·---··------·--· Topeka, Kans·----·---·-------·-·-·---···-----·---·--Tulsa, Okla-----·----- ------------·-·-----··--·----·---Wichita, Kans·----------------------···--·--------·-·- Four Weeks ending Mar. 3, 1926 5,993,000 15,08 5,000 8,012,000 5,335,000 11,437,000 153,814,000 12,245,000 3,417,000 2,674,000 3,553,000 1 l ,038,000 8,899,000 l 8,146,000 18,292,000 324,713,000 4,880,000 29,742,000 4,297,000 12,263,000 86,007,000 10,710,000 184,272,000 3,008,000 6,288,000 14,681,ooo 55,579,000 15,387,ooo 104,756,000 40,335,000 Total, 29 cities __ ----------------------·-·-··--··--····'/, 1,174,858 ,ooo Four Weeks ending Mar. 4, 1925 ,,, 6,230,000 13,047,000 11,182,000 5,536,ooo 12,432,000 154,621,000 15,203,000 3,187,000 2,692,000 3,352,000 15,on,000 9,617,000 l 5,883,000 17,687,000 322,627,000 5,026,000 32,023,000 4,5 19,000 n,592,000 76,534,000 II ,8 52,000 188,527,000 2,679,000 6,686,000 16,758,000 58,900,000 17,088,000 88,075,000 42,929,000 '/, 1,171,495,ooo Per Cent Change -3.8 15.6 --28.3 -3.6 -8.o --0.5 - 19.5 7.2 --o. 7 6.o --26.5 ,.5 14.2 3.4 0.7 --2.9 ,.1 -4.9 5.8 12.4 - 9. 7 --2.3 12.3 -5.9 -12.4 -5.6 -10.0 18.9 -6.o o. 3 Federal Reserve Bank Clearings During the month of February 5,308,263 checks for amounts aggregating $809,969,000 were handled by the transit forces at the Federal Reserve Bank of Kansas City and branches at Omaha, Denver and Oklahoma City for 1,020 member banks and 2,645 non-member banks. Clearings during February with its twenty-three banking days were $122,818,000 or 13.2 per cent less in amount than in January with its twenty-five banking days, although the clearings in February this year exceeded those for February of last year by $18,911,000 or 2.3 per cent. The record of clearings for the first two months of 1926 was 10,997,530 items-handled and $1,742,756,000 in amount, against 10,609,379 items and '$1,701,601,000 in amount in the first two months of 1925. Increases for this year over last year were 388,151 or 3.7 per cent in items handled and $41,155,000 or 2.4 per cent in amount. Building Building operations in eighteen cities of this district during the first two months of the current year were about 30 per cent under those for the corresponding period last year, but were above the average for the two months in eight years preceding this year. The official returns from the eighteen cities, complete to March 1, showed a very large amount of construction under 3 way, or authorized by permit, indicating large building operations through the spring months. The value of permits issued in the eighteen cities in February exceeded that for January by 58.7 per cent, but fell below the value of permits issued in February 1925 by 39.5 per cent. Six cities reported increases and twelve cities decreases in the value of their February permits as compared with February 1925. The heavy decreases in some of the larger cities was due in part to the fact that several of the largest building projects last year were launched in February. Official reports of the number of permits issued and_the estimated cost of construction are shown in the following table for the month of February in 1926 and 1925: Permits 1926 1925 12 Casper, Wyo·-··-··----··---·------·- 16 Cheyenne, Wyo·---··-·············· 14 23 Colorado Springs, Colo.·-····-· 69 80 793 Denver, Colo....................·-··· 492 26 Hutchinson, Kans•--···········-· 48 37 Joplin, Mo.···············-··-·······-· 55 131 Kansas City, Kans ............. _. II7 520 Kansas City, Mo ............·-··· 417 78 Lincoln, Nebr............. ·-········ 95 Muskogee, Okla................... 16 28 216 Oklahoma City, Okla ... ---··--· 201 Okmulgee, Okla._··-··········-·· 8 8 205 Omaha, Nebr---········ 94 Pueblo, Colo............. ·-···--····· 82 98 62 St. Joseph, Mo---··--·--- ----·-···· 55 l II Topeka, Kans-----··-·--·······-·-·· 77 Tulsa, Okla............ ·--············ 170 255 197 Wichita, Kans ..·-· ·····-··········-· 165 Estimated Cost Percent Change 1926 1925 f, 61,200 '/, 12,050 4o7.9 27,330 31,325 -12.8 68,157 71,553 -4-7 1,047,500 2,343,700 -55.3 67,645 125,575 -46.1 342.8 II4,285 25,808 166,650 188,635 -11.7 1,574,950 5,046,140 -68.8 1,177,574 241,710 387.2 31,875 35,385 ~·9 657,902 505,030 30.3 1.4 24,831 24,500 316,200 758,105 -58.3 62,490 124,203 -49.7 79,960 89,805 -11.0 247,332 46o,384 -46.3 810,6oo 781,4II 3.7 248,606 342,081 --27.3 February...... --···-······----·-··-···-·2,191 January ..... ·---·-·--····---·············1,362 '/,6,785,087 $4,275,298 2,880 1,597 '/,II,207,400 '/, 4,693,242 -39.5 -8.9 Lumber and Materials Reports from 306 retail lumber yards in towns and c1t1es through the Tenth District showed an increase in sales during February over January but a decrease as compared with February, 1925. Stocks were larger at the end of February than a month earlier and were smaller than at the close of the same month last year. The following summary of the reports shows percentages of increase or decrease for February over January 1926, and February 1925. February 1926, Compared to Jan. 1926 Feb. 1925 Sales of lumber in board feet ................. _ _ __ _ 15.0 --2.4 Stocks, board feet end of month ..................... ·-··········-···· 0.2 1 .7 All material sales, in dollars.... -·-····································· 2.5 -4.2 Outstandings, end of month ...........·-·-·················-··-·-·-·-·· 3.3 -1.8 Collections during month.·-········---······-·······················-····-3.6 6,o The lumber cut in the Uni ted States for four weeks ending February 27, as reported by all associations, was 1,024,613,084 feet, while shipments during the same period were 1,088,980,481 feet, and orders were for I, II 4,187,449 feet. These figures indicated production about normal, shipments 6 per cent above production and orders 9 per cent above production. Production of Portland cement at mills in this district was smaller and shipments larger in February than in the same month last year, as reported by the Bureau of Mines, Department of Commerce. The figures, in barrels, follow: Production Barrels February, 1926 ...... _ __ _ __ _ 28,ooo January, 1926 .. --···········--·--··--···--·-···········256,ooo February, 192 5······--····················-······-····529,ooo Shipments Barrels 614,000 325,000 578,000 Stocks Barrels 1,643,000 1,829,000 1,870,000 Manufacture of face brick at 72 plants in 19 states averaged 1,060 thousand per plant during January and February, an increase of 0.38 per cent over the first two months of 1925. Shipments averaged 724 thousand per plant or 0.69 per cent above shipments in a like period in 1925. THE MONTHLY REVIEW 4 Reporting Stores Dry:Good.,__ _ _ _ _ _ 7 Groceries_____ . Hardware.. Furniture.... Drugs Millinery_____ 8 7 6 8 J WHOLESALE TRADE IN THE TENTH FEDERAL RESERVE DISTRICT Sales Outstandings (Mo. End.) Collections Feb. 27, 1926 compared to Feb. 1926 compared to Feb. 1926 compared to Jan. 1926 Feb. 1925 Jan.30, 1926 Feb. 28, 1925 Jan. 1926 Feb. 1925 2.6 10.2 6.o 17.1 -3.3 1.3 -8.7 -3.5 -4.6 3.1 -4.2 --C.I 16.6 -6.7 8.6 -I.I -6.4 -3.8 2.4 -10.3 7.3 -2.1 2.2 16.1 -7.0 -0. 2 -4.5 5.4 0.3 -0.5 43.3 -13.1 31.0 -5.2 2.2 -28.9 Wholesale Trade The month of February closed with an increase in the volume of sales, in dollars, by wholesalers of dry goods over the volume in January and also over the volume i'n February of last year. Sales of groceries and drugs during the month were smaller than in January and smaller than in February of last year. Sales of hardware, furniture and millinery increased over the January totals, but in each of these three lines the volume was smaller than a year ago General conditions affecting trade in the district were much better than they were a year ago, but bad weather and bad roads at times kept February sales from running' up. In the dry goods line staple cotton goods were about 10 per cent cheaper than they were at this time in 1925, but retail merchants as a rule, in this as well as in other lines, continued to pursue the policy of buying in small lots and only for immediate and near future requirements. Supplies of merchandise in the hands of whoksalers were abundant, with no delays in deliveries from manufacturers. Wholesalers' stocks of dry goods at the end of February were smaller than a month earlier. Wholesalers of groceries increased their stocks, but the total at the end of the month was slightly below their stocks a year ago. Stocks of hardware and furniture were larger and stocks of drugs smaller at the close of February than at the close of January and also at the close of February, 1925. Distribution of implements and farm machinery to March I this year were in some lines larger and in other lines about the same as last year to March 1, but general conditions showed considerable improvement over last year, more cash with orders, seemingly more interest in farm operations, and dealers throughout the territory encouraged over the outlook. Retail Trade Sales during February at department stores in leading cities of this district, in dollar amounts, were at approximately the same daily average as in January, although the total for February was smaller on account of the difference in the number of business days. However, the February sales fell 3.4 per cent below those for February, 1925, and the total for the first two months of 1926 was 2.2 per cent under that for the first two month of the preceding year. February sales at twenty-five stores were Stocks (Mo. End.) Feb. 27, 1926 compared to Jan. 30, 1926 Feb.28, 1925 -7.2 8.5 5.2 -I.2 -0.4 5.6 0.3 6.5 -2.3 -4.6 smaller and at twelve stores larger than in February, 1925. Sales of women's apparel at special line retail stores averaged slightly less than a year ago, while the same trend was reported for stores handling men's clothing and shoes. Collections Collections by wholesalers during February were reported as satisfactory. Distributors of implements and farm machinery reported collections good. The amount of collections reported by department stores was 19 per cent less than in January but 3 per cent greater than in the corresponding month last year. Cash collections at retail lumber yards were 6 per cent larger in February than in the same month last year. Failures During the month of February there were 87 business failures in the Tenth Federal Reserve District and the amount of their liabilities was $703,410. This was the smallest number of failures reported for any month since October, 1925, and the smallest amount of liabilities reported for any month since September 1920, nearly five and one-half years ago. Failures during the first two months of 1926 were 234 and liabilities amounted to $2,052,138, as compared with 224 failures and $2,772,304 of liabilities in the first two months of last year. The February record of business failures and liabilities, in the United States, compiled by federal reserve districts by R. G. Dun & Company, with comparisons, are shown in the table which follows: First, Boston .............................. Second, New Yor Third, Philadelphia.................... Fourth, Cleveland ...................... Fifth, Richmond........................ Sixth, Atlant Seventh, Chicago .. Eighth, St. Louis ...... Ninth, Minneapolis .................... TENTH, KANSAS CITY........ Eleventh, Dallas ........................ Twelfth, San Francisco .............. LIABILITIES 1926 1925 '/, 2,338,036 '/, 2,095,771 NUMBER 1926 1925 173 170 308 324 72 93 120 188 121 n8 JOO 124 287 252 100 107 92 85 90 87 62 79 204 238 Total, United States .................. 1,801 1,793 6,174,315 2,104,852 13,046,09 3,966,625 1,845,3o7 1,762,288 7,729,996 3,186,884 843,138 703,410 669,997 2,057,01 2,162,97~ 3,690,393 1,596,383 '. I 5,464,08 1 3,343,246 1,548,919 1,093,9 15 2,851,500 1,670,801 2,353,415 '/,34,176,348 '/,40,123,01 7 RETAIL TRADE AT 37 DEPARTMENT STORES IN THE TENTH FEDERAL RESERVE DISTRICT Stores Reporting Kansas City ............................ 3 Denver.................................... 4 Wichita .................................... 4 Omaha .................. - - - 2 Oklahoma City ...................... 3 Lincoln ........ _ _ _ _ _ 3 Tulsa.·------·••···· 3 Other Cities ............................ 15 Accounts Receivable Outstanding Orders Stocks (Retail) Sales February 27, 1926 February 27, 1926 February 27, 1926 Feb. 1926 compared to compared to compared to compared tc Feb. 1925 Jan. 30, 1926 Feb. 28, 1925 Jan. 30, 1926 Feb. 28, 1925 Jan.30, 1926Feb.28, 1925 -15.0 -20.0 -10.4 6.5 11.6 1.4 -5.9 -12.7 23·7 -17.8 -0.l -7.3 10.4 -11.9 12.3 -3.0 -I.2 3.8 -2.7 31.5 Collections February 1926 compared to Jan. 1926 Feb. 1925 -2.1 -I.0 -21.0 -6.1 17.0 -19.0 -2,1 5.9 o.6 12.4 -2.0 67.0 7.7 30.6 4.6 32.4 -5.0 5.0 -1.9 - 13.3 34.8 -10.0 -3.2 -22.0 28.1 -7.3 -6.2 - 13.4 -12.5 -8.6 -5.8 17.1 9.9 12.7 3.0 -25.1 -24.4 -22.6 -27.2 Total.... _ _ _ _ _ _ _ 37 -3.4 17.0 2.9 -2.9 -10.5 -12.7 1.9 -19.0 NOTE: Percentage of collections in February on outstanding accounts January 30, all stores reporting 40.8%. Collections same month last year 41.7%. 20,1 4.9 22.2 I.I 3.0 4 5 THE MONTHLY REVIEW Agriculture In most of the Tenth District farm work was farther advanced near the close of March than was usual for the season. The weather was mild and spring-like during February and March, ex~ept for brief periods of storms and low temperatures, while rams and melting snows provided the soil moisture needed for the impot'tant period of spring planting and germination. In the extreme southwest counties of Kansas and the extreme northwest counties of Oklahoma precipitation to the first week in March was scant, but this condition was r elieved to a considerable extent by general rains over the western Great Plains which extended from the northern line of Nebraska down into Texas. . Winter wheat prospects improved and reports at the begin~ mng of the third week in March showed the crop in excellent l_ condit_ion in all sections of this district. The only exceptions ' were in southwest Kansas and northwest Oklahoma, where there had been some deterioration and considerable soil blowing previous to the general rain of March IO. On the whole, the condition of winter wheat throughout the district was better than that reported a year ago, and with an increased a.creage over last year reports indicated the prospect for a normal crop of wheat was very good. Seeding of oats had an early start in Oklahoma and southern Missouri and this work was about finished by March 10. South central Kansas reported 60 per cent of the acreage for oats already sown at that time. Toward the middle of March seeding extended throughout northern Kansas and Missouri and was starting in ebraska and Colorado. Indications were that the total acreage of oats sown in the district this year would closely approximate that of 1925. Potato planting was completed in the commercial districts of eastern Oklahoma, southern Missouri and southern Kansas by March I 5 and a good part of the potato acreage in the Kaw Valley of Kansas was planted by the last week in March. Corn planting was started in the first week of March in extreme southern sections of Oklahoma and Missouri, although preparations in other sections to that time had not gone beyond the testing of seeds and breaking of stalks for listing. Conditions generally were quite favorable for a large acreage of corn this year, but it was expected that the acreage this year would not 1 ,. be as large as that of last year. } Reports from Oklahoma indicated that while some of the larger i producers were reducing their cotton acreages this year, many of the small producers were preparing to increase their cotton acreages. Preparations for this year's planting made excellent progress during February and March in Oklahoma, southern Missouri and in ew Mexico. Efforts were being made to increase production of sugar beets in the irrigated sections of the Rocky Mountains and Great Plains through the introduction of improved farming methods as well as by increasing the acreage planted. Last year's sugar beet acreage was below the yearly average for the five previous years, due in part to delay in negotiating contracts between growers and refining companies, and in part to abandonment of planted acreages on account of dry weather during the growing season. This year the major sugar beet acreage was under contract by March 1. With guaranteed increase in some sections in the price to be paid for beets, and other conditions generally favorable, an increase in the sugar beet acreage is in prospect in Colorado, Wyoming, ebraska and Kansas. Last year 380,000 acres of sugar beets were harvested in these four states and production amounted to 3,467,000 tons of beets. Fruit buds were abnormally advanced and in the southern parts of the district early varieties were blooming early in March. There were low temperatures and some freezing at times during March but reports indicated no material damage, although the situation was hazardous for early blooming tree fruits. Grain on Farms Stocks of wheat on farms in the Tenth District were smaller and stocks of corn and oats were larger on March 1 than one year earlier, according to reports of the United States Department of Agriculture at Washington and also the reports issued by Government crop reporting bureaus and state boards of agriculture in the several states. Combined reports from six states, all or a part of whose areas are in the Tenth District, showed 20,042,000 bushels of wheat on farms on March I out of 176,475,000 bushels harvested last summer. These totals compare with 33,157,000 bushels of wheat on farms on March 1, 1925, out or 318,410,000 bushels harvested in the summer of 1924. Wheat on farms on March I in these six states represented I 1.3 per cent of the harvested crop of 1925, while wheat on farms at the corresponding date last year represented 10.4 per cent of the crop harvested in the summer of 1924. This year's was the lowest reserve of wheat on farms in this district for many years and was the natural result of a short crop followed by a keen demand for high grade milling wheat. Farm reserves of corn on March 1, was reported as 263,623,000 bushels in the six states. This total represented 44.8 per cent of the 588,569,000 bushels of corn produced last year. On March 1, 1925, the same states reported 187,225,000 bushels of corn on farms out of the 1924 crop of 549,784,000 bushels, the reserve amounting to 34 per cent of the total production. The large reserve of corn this year was attributed to a decrease in feeding operations, larger production and a tendency to withhold corn from the market on account of the low price. The amount of oats on farms on March I was 68,464,000 bushels or 34.3 per cent oflast year's production in the six states. Barley stocks reached the lowest point for many years on March 1 of this year. Stocks of wheat in elevators at Kansas City, Omaha, St. Joseph and Wichita on March I totaled 8,886,000 bushels against 12,677,000 bushels at the corresponding reporting date in March, 1925. Stocks of corn on the first day of the month at the four grain centers were 7,183,000 bushels against 10,767,oco bushels a year earlier, while stocks of oats were 8,128,000 against 4,046,000 bushels. FARM STOCKS OF GRAIN IN SIX STATFS O MARCH WHEAT CORN March 1926 Bushels i:~:::~::::::::::::.·.·.·.·.::::::::::·::::::::::::::::::::::::::::::::::::::::::: ~:~~~:= M~~:~~;~ : :::::: ••·· · · · · · ·· ·••:•:•••=:= 1:;1::: 630,000 Wyoming.. .................................................................... Six States ......................................................................20,042,ooo United States ..............................................................99,279,ooo March 1925 Bushels 1::~~~:= i:i1i:E: 321,000 March 1926 Bushels 3;:~i~:= ,~;~t= 1,406,000 33, 157,000 263,623,000 2,042,000 1,318,793,000 I I 1 March 1925 Bushels 4,350,000 40,503,000 56,160,000 69,031,000 16,857,000 324,000 187,225,000 759,47 1 , 000 OATS March 1926 Bushels 1,987,000 11,813,000 17,700,000 28,842,000 March 1925 Bushels 1,820,000 9,241,000 13,040,000 6,293,000 27,507,000 7,500,000 1,829,000 1,088,000 68,464,000 60,196,000 577,064,000 546,656,000 6 THE MONTHLY REVIEW Grain Marketings Due to the smaller supplies of wheat in this district the February receipts at the five principal markets were smaller than January receipts by 9.5 per cent and smaller than the receipts for February, 1925, by 25.8 per cent. Receipts of corn an<l oats in February fell below the totals for the preceding month and the same month of last year. February receipts at these markets were: Wheat Corn Hutchinson .............. 700,650 155,000 Kansas CitY·····-·······2,616,300 2,072,500 Omaha...................... 845,600 1,766,800 St. Joseph ................ 613,200 780,000 Wichita ...................... 873,450 188,400 Oats 10,500 443,700 572,000 126,000 Kafir 89,700 15,000 290,400 27,200 7,500 Rye Barley 15,400 61,600 25,500 2,400 14,400 ----- Feb. 1926.................. 5,649,200 4,962,700 1,177,700 77,000 Jan. 1926..................6,244,300 7,104,700 1,530,200 142,000 Feb. 192 5..................7,618,2 50 5,176,450 1,873,000 80,700 44,6oo 402,000 75,7 00 584,400 72,400 949,900 Flour Milling Milling operations during February were at an average of 55.8 per cent of full time capacity against 58.5 per cent in January and 63.9 per cent in February, 1925. Production of flour during the month at the reporting mills was 1,553,342 barrels, 168,327 barrels less than in January and 244,414 barrels less than in February of last year. Production at milling points in this district, as compiled by the Northwestern Miller, is here shown for the month with comparisons: Feb. 1926 Barrels Atchison ................................................. . 94, 12 5 Kansas City............................................. . 413,864 Omaha ..................................................... . 83,716 Salina....................................................... . 106,686 St. Joseph ............................................... . I16,421 Wichita..................................................... . II4,76o Outside ...................................................... 623,770 Jan. 1926 Barrels 105,326 484,557 88,210 104,219 n3,649 II4,512 711,196 Total.. ........................................................ 1,553,342 Feb.1925 Barrels 92,493 ' 404,362 89,140 n2,691 166,218 1 35, 1 90 797,662 . 1,797,756 Live Stock Conditions The live stock industry in the Tenth Federal Reserve District, and throughout the Southwest, was in stronger position at the opening of Spring than for several years, according to recent reports, official and unofficial. This was especially true with respect to the cattle industry. Advances in prices to higher levels during the past year served to chec;:k the heavy liquidation of herds that had been going on for some time in the range country, and there was said to be a strong tendency to restock the ranges with breeding stock. Cattlemen generally were very optimistic. Cattle on farms and ranges came through the winter in better condition of health and flesh generally than for several years. Wit;1 mostly mild and pleasant weather during February the snow on ranges in the Rocky Mountain regions and the upper Great Plains cleared off considerably and much feed was made available. In Texas, ew Mexico and Arizona ranges were better than for many years and the condition of cattle showed a corresponding improvement. Because of the better range condition cattlemen in these states were in position to hold their cattle on the range and indications in March were that many shipments to northern summer pastures would start later than usual. Throughout the states of Missouri, Kansas, ebraska and Oklahoma live stock had a good winter-better than normal. In Oklahoma the report said that mild weather and the fact that farmers had wintered only what cattle thev could feed had acted to keep the stock in better condition. The position of the sheep industry changed very little in recent months. Some shed lambing in February was reported and pros- ery !ittle contracting pects were favorable for a good crop. for either lambs or wool had been done to March 1, though a few offers had been made at prices below those at which contracts were made last year. While the number of hogs on farms in the district on January 1 1926, was smaller than at any time since January I, 1920,.recent reports indicated efforts were being made to relieve the shortage by large pig crops. The hog situation in the corn belt is explained by a Nebraska grower in the following: "When corn was so high that the farmer could not afford to feed it to his swine he sent stock to market in a half-fat condition. ow that corn is cheap and hogs are bringing a good price the farmer is marketing his grain in the form of pork. This practice has just about cleaned out the hogs from a good many farms and as a result farmers are keepipg more of their brood sows than heretofore. All through Nebraska nearly 20 per cent more brood sows are being retained on farms than at this time last year, and the holding back of such stock is bound to make itself felt to some extent until the next crop of pigs is ready to come to market. " Live Stock Marketings Supplies of cattle, calves and hogs at the markets in this district in February were in numbers smalkr than in January of this year or in February of last year. Arrivals of sheep and lambs during the month, although showing a seasonal increase in number over the preceding month, were less by a few thousand head than in the same month last year. Horses and mule~ were sent to the markets in larger numbers in February than in the preceding month or in the corresponding month last year. Receipts are here shown for each of the six leading markets in this district: Cattle Kansas City ........ ....:....................... 129,265 Omaha .......................................... _.. 1o6,132 St. Joseph .... .................................... 40,728 Denver............................................ _ 17,582 Oklahoma ........................................ 20,066 Wichita ............................................ 18,269 February, 1926................................332,042 January, 1926.................................-400,592 February, 1925 ................................349,234 Calves 20,505 7,4 23 7,5°5 3,140 7,577 4,496 Hogs Sheep 179,189 111,758 258,118 184,768 101,437 132,448 55,095 135,455 I 5,242 59 1 3,508 32,953 63,210 642,034 568,528 838,912 497,335 58,973 1,008,478 580,122 50,646 Horses Mules 4,641 2,272 1,485 4,286 1,207 3,267 17,158 14,710 16,490 ( ! Stocker and Feeder Outgo The February reports reflected something more than the usual ' seasonal decline in shipments of stock and feeding livestock from , th markets to the country. The February outgo of stock and feeding cattle was the smallest for any month since July 1921, while the outgo of calves to the country was the smallest since January 1925. Countryward shipments of hogs during the month was only a few head less than in J anuary ar.d was 7.2 per cent greater than in February a year ago. Fewer sheep were shipped to the country during the month than in any previous February since 1921. Stocker and feeder shipments from four reporting markets for the month of February were: Cattle Kansas City.. ........................................ _ 35,300 Omaha_·······················-----··· 17,004 St. Joseph ...................................·-·········· 5,198 Denver_.................................................. 6,996 Calves 1,836 43 1 421 1,983 522 11,183 22,187 February, 1926........................................ 64,498 January, 1926............- - - - - - 98,394 February, 1925 _ _ _ _ _ _ _ _ _ 70,791 2,688 2 ,909 3,37 2 10,968 II,008 10,232 57,594 83,636 71,761 Hogs 7,546 91 7 Sheep 9,130 1 5,091> THE MONTHLY REVIEW . Petroleum Packers Purchases Packers at the six principal centers took the bulk of the February supplies of meat animals for their slaughtering operations. Their purchases for the month included 62 per cent of the receipts of cattle, 87.5 per cent of the receipts of calves, 72.2 per cent of the receipts of hogs, and 62.9 per cent of the receipts of sheep. The February slaughter of cattle was 1 I.2 per cent less than in January but 4.6 per cent greater than iri February of last year. Fewer calves and hogs were slaughtered during the month than in the preceding month or in February a year ago. The number of sheep and lambs driven to the killing pens during the month was larger than that for the month of January and larger than that for February of last year. The reports showing packers' purchases at six markets, including live stock shipped direct to packer yards) follow: Cattle Kansas City............................................ Omaha................· - - - - - · · · ······ St. Joseph ................· - ---······· Denver.................................................... Oklahoma City........................................ Wichita.................................................... 76,178 72,599 30,040 7,277 13,979 6,644 February, 1926........................................ 206,717 January, 1926 ............ _ _ _ _ _ _ 232,809 February, 1925 _ _ _ _ _ _ _ 197,534 Calves 19,614 5,694 . 6,768 2,747 6,566 2,976 44,365 50,093 48,820 Hogs 141,401 155,588 76,846 47,877 11,581 30,262 108,366 20,007 318 3,461 463,555 357,546 636,645 794,915 326,035 292,351 Sheep 89,861 135,533 The Lenten season, opening February 17, had the usual effect of slowing down, to some extent, the wholesale fresh meat trade. ~!though the volume of smoked and cured meats moving into consumption channels was fairly heavy during February, stocks of pork and lard at the end of February were larger than a month earlier but considerably less than at the end of February 1925. The figures for Kansas City show that stocks pf pork and lard were 30,608,600 pounds on February 28, 1926. Lead and Zinc Activity at the zinc and lead mines in Missouri, Kansas and \ Oklahoma, the tri-state field, increased during February and r' both production and shipments of ores for the month were larger ) than in January and also larger than in February a year ago. The record of zinc and lead ore shipments in the three states during the four weeks ending February 27 are here shown with the totals for the four weeks ending January 30, 1926 and February 28, 1925: ZINC Tons Value Oklahoma..................................... -49,419 '$2,532,879 ~~:sS:ii~·:.·:::::::·.·.·::::::::::::::::::::::::::: ::~!~ 2 Four wks. ending Feb. 27, 1926..77,093 Four wks. ending Jan. 30, 1926....62,580 Four wks. ending Feb. 28, 1925-.67,485 1 '~l;:~~; '$3,95 2,677 3,462,463 3,533,320 7 LEAD Tons Value 10,213 $1,213,357 1,888 224,812 205 24,440 12,306 7,859 10,695 $1,462,609 944,842 1,358,150 The sales price of zinc ores, which had averaged $53 pu ton during the first two months of 1926, dropped to $48 per ton early in March, with the result that production was somewhat curtailed and shipments fell off. Lead ores sold at an average ~ of $115 per ton in the last week of February and also in the first week of March. In the second week of March,. however, the sales price was down to $100 per ton and shipments of ores were light. Production of crude oil in this district during February averaged 638,929 barrels per day, against an average of 634,387 barrels per day in January and an average of 668,400 barrels per day in February, 1925. Because of the difference of three days in the length of the month gross pr~duction in February, with its larger daily average, was 1,776,000 barrels less than in J anuary. The February gross production was 825,oco barrels less than that for the corresponding month last year. The figures showing the gross production and the daily average for each of the five producing states in February, with totals for January 1926 and February 1925 for comparison, follow: GROSS PRODUCTION *Feb. 1926 Bbls. Oklahoma................................................ 12,608,ooo Kansas .................................................... 2,858,000 Wyoming................................................ 2,113,000 Colorado...................................,.............. 193,000 New Mexico.......................................... 118,000 TotaL ...................................................... 17,890,ooo *Jan. 1926 Bbls. 13,822,000 3,086,000 2,444,000 183,000 131,000 19,666,000 DAILY AVERAGE PRODUCTION *Feb. 1926 *Jan. 1926 Bbls. Bbls. 445,871 Oklahoma................................................ 450,286 Kansas ................................................... . 102,072 99,548 Wyoming............................................... . 75,464 78,839 Colorado................................................. . 6,893 5,9o3 New Mexico ......................................... . 4,214 4,226 Tota..____ _ _ _ _ ························· *Estimated, American Petroleum Institute. Feb. 1925 Bbls. 13,922,000 2,517,000 2,213,000 53,000 10,000 18,715,000 Feb. 1925 Bbls. 497,221 89,893 79,036 1,893 357 668,400 Field reports this season indicated extensive development work in all of the five producing states of this district. There were fewer completions in February than in January, but the daily average new production resulting from February completions was larger than the daily average new production brought in during the previous month. However, the daily average new production in February was smaller than that for the same month last year. The reports showed larger drilling operations at the close of February than were reported one month earlier and one year earlier. Field operations in the :five states during the month were: Wells Bbls. Daily Completed New Prod'n Oklahoma............321 51,757 Kansas ................208 9, 137 Wyoming............ 31 10,029 Colorado .............. 3 1,860 New Mexico ........ 18 1,090 Feb. 1926 ............ 581 Jan. 1926............ 674 Feb. 1925............447 73,873 67,613 94,302 Dry Wells 107 65 2 Wells Rigs-Wells Drilling 32 14 1,253 501 3 316 0 125 150 Gas 0 6 0 180 226 49 68 137 50 2,345 2,263 2,209 According to the reports 62 refineries were in operation in Oklahoma and Kansas on March 1, as compared with 65 on February 1 and 76 on March 1 last year. Runs of crude oil to refinery stills in t.:hese two states on March 1 were 233,345 barrels daily against 250,555 barrels daily on February 1 and 257,675 barrels daily on March 1, 1925. 8 THE MONTHLY REVIEW Bituminous Coal Soft coal production in the short month of February was at a smaller rate of operating capacity than in the preceding month or a year ago. The month's output in tons is shown for the six producing states in the followin g : *Feb. 1926 Tons Colorado.................................................... 696,000 Kansas ...................................................... 334,000 Missouri.... ................................................ 202,000 New Mexico ............................................ 219,000 Oklahoma.................................................. 174,000 Wyoming.................................................. 526,000 Jan. 1926 Tons 1,079,000 449,ooo 283,000 271,000 229,000 724,000 Feb. 1925 Tons 897,000 385,000 259,000 223,000 213,000 572,000 Tota.___ _ _ _ _ _ _ _ ___.,151,000 3,035,ooo 2,549,000 Estimated United States production of soft coal for the coal year to March 6 (approximately 286 days) was 505,092,000 net tons, a daily average of 1,764,000 tons. Production for a similar period in the 1924-1925 coal year was 442,890,000 net tons and a daily average of 1,551,000 tons. Production of beehive coke in Colorado and New Mexico during the calendar year to March 7 was placed at 50,000 tons against 39,000 tons for the same period in 1925. Business Conditions in the United States Production and trade continued in February at the high level of the preceding month, while the general average of prices declined and was lower in February than at any time since the latter part of 1924. Production The Federal Reserve Board's index of production in basic industries, which is adjusted for seasonal variations, indicated a continuation of productive activity during February in about the same volume as in the preceding two months. Mill consumption of cotton and the output of flour, anthracite, copper, and newsprint showed increases in February, when allowance is made for usual seasonal changes, and the output of iron and steel and lumber remained practically unchanged. Activity in the woolen industry and the production of cement declined. Automobile production was in considerably greater volume in February and was larger than a year ago, although smaller than in the corresponding month of 1924. Employment and earnings of factory workers increased, after the seasonal recession of January, and were in February at practically the same levels as during the latter part of 1925. The volume of building contracts awarded declined both in January and in February, but remained larger than in the corresponding months of last year. < ,Reports by farmers to the department of agriculture of intentions to plant in 1926 indicate that the acreage of spring wheat and tobacco will be slightly smaller, the acreage of corn will be about the same, and that of oats, barley, hay, and potatoes larger than that in 1925. Trade Wholesale trade in February was in about the same volume as a year ago. A smaller volume of sales was reported for grocery and drygoods and hardware, while sales of meats, shoes and drugs were larger. Inventories of wholesale firms dealing in groceries, drygoods, shoes, and hardware were smaller at the end of February than a year ago. Trade at department stores and atmailorder houses was larger than in February of last year, and department store stocks were about 5 per cent greater than on the corresponding date of 1925. Freight car loadings continued at about the same daily rate in February as in the preceding two months. Shipments of merchandise in less than car load lots and of miscellaneous commodities were particularly large. Prices The general level of wholesale prices, as measured by the Bureau of Labor statistics index, after remaining unchanged for two months, declined in February to a point slightly below the low figure of 1925, reported for last May. The greater part of the decline since last autumn has been in prices of agricultural C_?mmodities. In February prices of all major groups of commodities, except fuels, declined and particularly large reductions occurred in the prices of grains, cotton,. wool, silk and rubber. Price advances in February were shown for petroleum, coke, an~ paper. During the first three weeks of March prices of grams, cotton, wool, and silk continued to decline and recessions were also reported in the prices of sugar and hardwood lumber. Bank Credit At member banks in leading cities demand for loans chiefly for commercial purposes showed an increase, partly seasonal in character, between the middle of February and the middle of March, and on March 17 the total volume of these loans was close to the high point reached last autumn. A further decline of loans on securities which accompanied the sharp recession in securities prices in March, carried the total to a point nearly $430,000,000 below that reached at the end of the year. Following a growth during February in the volume of reserve bank credit outstanding, there was a sharp decline early in March to about the same level asayear ago. Factors contributing to the decline have been continued imports of gold and some reductions in member bank reserve requirements, as well as temporary abundance of funds resulting from the excess of Treasury disbursements over receipts around March 15. Open market rates on prime commercial paper, after aslight decline inFebruary advanced inMarch to 4¼-4.¾' percent, the level which had prevailed since last October.
@FedFRASER