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THE MONTHLY REVIEW OJ Agricultural, Industrial, Trade and Financial Conditions in the Tenth Federal Reserve District FEDERAL RESERVE BANK OF CI TY KANSAS M. L. McCLURE, Chairman and Federal Reserve Agent A. M. McADAMS, Assistant Federal Reserve Agent and Secretary Vol. 13 KANSAS CITY 7ITH the advance into the spring season industrial activity in the Tenth District increased, wholesale \ \ and retail trade expanded, and marketings of farm products and livestock were at high levels. Payments by check at banks in 29 important cities during the short month of February were 7.2 percent less than in January but .2 percent greater than in February 1927. Loans of Federal Reserve member banks increased, discount rates were firm and deposits in commercial banks and in savings institutions were larger than one month earlier or one year earlier. Mild temperatures, accompanied by rains and snows during February and March, improved conditions and prospects for the year's farm production. Winter wheat made fine progress and with abundant moisture for spring needs a good crop was in prospect at the close of March, though depending on average conditions to harvest time. Preparation of the soil and the planting of spring crops advanced rapidly and, according to the Government's report of intended plantings, this year's acreages of most crops would be up to those oflast year. However, no figures on the intended cotton acreage are obtainable at this time. The abundant moisture was beneficial to ranges and pastures and to the livestock industry. A feature of the situation in February was the heavy market supplies of corn, moderate sµpplies of wheat and other grains, the largest receipts of hogs for any month since January 1925, and smaller receipts of cattle. Activity at most of the industrial plants increased during February. Slaughter of hogs was the largest monthly total since January 1919. There was an increase in the slaughter of sheep but a decrease in the slaughter of cattle as compared with the preceding month and the corresponding month last year. Flour output was smaller than in either January or a year ago, reflecting the seasonal decline in the wheat supply. Petroleum industry reports reflected further curtailment in production during February in conformity to plans of operators to prevent over-production and accumulation of stocks. The output for the month was the smallest since January 1927. The production of bituminous coal declined from both the preceding month and the corresponding month last year. There were increases in shipments of zinc and lead ores over those for January but decreases as compared with a year ago. Building activity increased and with an early start operations were ahead of last year. Permits issued in leading cities during February were substantially larger than in the preceding month and a year ago, both in number and value. Contract awards in the District as a whole showed a good increase over January but were a little below awards in February 1927. Mo., No. 4 APRIL 1, 1928 BUSINESS ACTIVITY IN THE TENTH FEDERAL RESERVE DISTRICT Statistics for February 1928 compared to those for January 1928 and February 1927 in Percentages of Increase or Decrease. February 1928 February 19'18 compared to compared to General Rusiness and Banking January 1928 February 1927 Bank Debits, 29 cities .. _ _ _ _ _ __ - 7,'1 0.'.l -12.3 - '.l.6 Reserve Bank Clearings ...·-··················-····- 6.8 4.8 ltems Handled .......· - - - - - - Loans, 65 Member Bank.,__ _ _ __ 2.0 3.2 Investments, 65 Member Banks .................. - 1.4 9.3 2.0 3.1 Deposits, 65 Member Banks.·-····---········Savings Deposits, 58 Banks.·-··---0.9 5.3 Savings Accounts, 55 B a n k ~ - - - 0.5 5.8 Business Failures, No ........ _ _ _ __ 9·9 0.7 Amount of Liabilitie~-----42.3 6.8 Trade I.'.l - 3.0 Sales of Department Stores .....·-·················· Sales of Wholesalers, 6 lines .........................• 6.-4 5.9 2.I Sales of Lumber, I 87 Retail Yards ............. . - 3.5 Sales of All Materials, I 87 Retail yards...... - 8.o - 5.8 Market Receipts Whea _ _ _ _ _ _ _ _ _ _ __ -21.5 -34-5 Corn .... _ _ _ _ _ _ _ _ _ __ 8.1 223.8 Oats .......... _ _ _ _ _ _ _ _ _ __ 8.9 1-4.7 Cattle.. _ _ _ _ _ _ _ _ _ _ __ -Z2.0 1.5 Calves ................................. ·- - - - Hogs .. _ _ _ _ _ _ _ _ _ _ __ - Sheep.·-············· - - - -- - - - Horses and M u l e ~ - - - - - - - Production Flour _ _ _ _ _ _ _ _ _ _ _ __ Coal.. ................ _ _ _ _ _ _ _ __ Petroleum ...· - · · · · - - - - - - - - Refinery operations (daily runs crude oil) .. Lead ore (Shipments) .................................... Zinc ore (shipments) ...................................... Cement·--··· · · · · · · - - - - - - - - Face Brick ..... - - - - - - - - - Meat Packing Cattle _ _ _ _ _ _ _ _ _ _ __ Calves _ _ _ _ _ _ _ _ _ _ __ Hogs .. _ _ _ _ _ _ _ _ _ _ __ Sheep ........ _ _ _ _ _ _ _ __ Construction Building Permits, 18 Citic.,__ _ _ __ Value Permits, 18 Cities .. _ _ _ _ __ Contract awards, Distric..___ _ __ 1 3.9 5-4 2.1.1 78.3 32 ·4 -24.1 65.8 2'.l •• -p. - 3.9 -ZI.4 - 1 3.5 - 7.5 -3.2 0.1 -2.3 I.I 15.2 3.7 - -4.9 9.1 -17.2 97.6 -6.o - 5.8 - 5.9 -0.3 22.9 105-2 9.9 39·+ -I2.2. Financial MEMBER BANKS SHOWING: Condition statements of 65 reporting member banks in leading cities of this District showed an increase in volume of outstanding credit between February I and February 29. Loans and discounts increased $8,644,000 during this four weeks period, and the total on Feb- This Copy Released For Publication In Morning Newspaper March 29. THE MONTHLY REVIEW ruary 29 stood $13,397,000 above that for March 2, 1927. Loans secured by United States Government obligations increased slightly, though they showed a decrease of $807,000 from the total reported on the corresponding date in 1927. Loans secured by other bonds and stocks were larger than four weeks earlier and one year earlier. There was a decline in four weeks of $3,142,000 in amount of investments by these banks, but the total at the last reporting date in February was 1,18,629,000 larger than one year earlier. Total deposits increased $13,304,000 in four weeks and were 1,20,083,000 larger than on March 2, 1927. Statements of the principal resource and liability items shown for three separate dates in the following table are given for purpose of comparison: Fcb.29, 1928 Feb. 1, 1928 Mch. 2, 1927 Total loans and discounts 'f,135,509,000 1,426,865,000 f,422,u2,ooo Secured by U. S. obligations·---······· 3,671,000 3,367,000 4,478,000 Secured by other bonds and stocks .. 129,777,000 126,928,000 II 5,215,000 Ail other_ _ _ _ _ _ _ _ _ _ 302,061,000 296,570,000 302,419,000 Total investments .......... _ _ _ _ _ 219,693,000 222,835,000 201,064,000 U.S. Securities................................._ 105,119,000 105,455,000 103,717,000 Other bonds, stocks and securities.... II4,574,ooo u7,380,ooo 97,347,000 Total Loans, Discounts and Investr n e n t • · · - - - - - - - - - - 655,202,000 649,700,000 623,176,000 Total Deposits ........ _ _ _ _ _ _ _ 672,887,000 659,583,000 652,804,000 Demand deposits ...·-························- 506,08 I ,ooo 493,480,000 502,816,000 Time deposits_, _ _ _ _ _ _ _ 166,057,000 164,463,000 148,541,000 Government deposits._____ 749,000 1,640,000 1,447,000 Reserve balance with F. R. Bank.·-··- 57,676,000 54,783,ooo 53,578,ooo RESERVE BANK OPERATIONS: The weekly condition statement of the Federal Reserve Bank of Kansas City and branches as of February 29, showed total reserves were $10,074'459 larger than on February 1, but $4,6u,846 smaller than on March 2 of last year. The amount of reserve bank credit outstanding on the last reporting date in February was $7,259,561 less than on February I, but '/,3,567,772 greater than on March 2, 1927. Bills rediscounted for member banks in the last two weeks of February were at the lowest level since last September but above the level of one year ago. There were declines in the total of bills purchased both as compared with four weeks earlier and one year earlier. This bank's holdings of United States Government securities declined during the month, but at the close were larger than a year earlier. Federal Reserves note circulation"? also showed a decline from both former periods. Principal items in the statement are here shown for three dates: Feb. 29, 1928 Feb. 1, 1928 Gold reserve"--- - - - - - - $ 99,582,795 1, 88,891,297 Reserves other than golU-____ 6,987,209 7,6o4,248 Total reserves - - - - - - - - 106,570,004 96,495,545 Bil1s discounted.·-······························-·· 10,768,404 14,144,469 Bills purchased........................................ 12,106,592 13,738,088 United States securities.......................... 28,968,600 31,220,600 Total bills and securities........................ 51,843,596 59,103,157 Total resources .. _ _ _ _ _ _ _ ... 202,505,240 198,u4,6o1 F. R. notes in circulation...................... 59,203,775 61,420,075 Total deposits .......... _ _ _ _ _ _ 95,258,320 91,650,937 Mch. 2, 1927 1,106,149,746 5,032,104 IIl,181,850 7,513,217 12,693,707 28,068,900 48,275,824 2n,592,591 68,326,425 89,427,589 RESERVE BANK CLEARINGS: The_ Federal Reserve Bank of Kansas City and branches at Omaha, Denver and Oklahoma City reported clearings or check collections in February were in amount 12.3 percent less than in January and 2.6 percent less than in February a year ago. Items handled during the month under review were 6.8 percent less than in the preceding month but 4.8 percent greater than in the same month last year. The monthly totals: ITEMS 1928 1927 January ........._............ 5,834,219 5,543,292 February.................... 5,438,210 5,188,147 AMOUNT 1928 1927 1, 942,609,000 'f, 985,048,000 826,861,000 849,360,000 Two months .......... --u,272,429 10,731,439 'f,1,834,408,000 BANK DEBITS: Reports of Clearing Houses in twentynine leading cities in the Tenth District show debits by banks to individual accounts, (exclusive of charges to accounts of banks), during the four weeks ending February 29 exceeded those for the like period in 1927 by .2 percent. Fifteen cities reported increases and fourteen cities reported decreases. During the first nine weeks of 1928 the volume of debits in the twenty-nine cities was 2.2 percent larger than for the corresponding period in 1927. The totals for the cities, as reported to the Federal Reserve Bank of Kansas City, follow: Albuquerque, N. M ..·-·········-········· Atchison, Kans .. Bartlesville, Okla.......... Casper, Wyo .... Cheyenne, Wyo ..................·-·········· Colo • Springs, Colo ........................ Denver, Colo Enid, Okla.......... Fremont, Nebr....... Grand Junction, Colo.................... Gutherie, Okla........ Hutchinson, Kans .... _..................... Independence, Kans.-..................... Joplin, Mo Kansas City, Kans....·-··-···-·-··········· Kansas City, Mo .. _.... Lawrence, Kans ........ Lincoln, Nebr .... _. Muskogee, Okla.·-····· Oklahoma City, Oki Okmulgee, Okla ........ Omaha, Nebr Parsons, Kans Pittsburg, Kans ............................_ Pueblo, Colo .......... St. Joseph, Mo ...... Topeka, Kans .... Tulsa, Okla.................. Wichita Kans ......·-·························· FOUR WEEKS ENDING Feb. 29, 1928 Mch. 2, 1927 1, 10,632,000 $ 10,149,000 5,494,000 5,347,000 17,056,000 26,048,000 8,326,000 6,034,000 5,oo6,ooo 5,024,000 12,173,000 13,748,000 149,341,000 149,425,000 u,326,000 12,903,0vv 3,167,000 3,790,000 2,838,000 2,659,000 3,070,000 3,282,000 15,810,000 13,783,000 9,516,000 10,787,000 12,550,000 13,784,000 18,613,000 18,897,000 337,191,000 330,571,000 4,650,000 4,851,000 27,661,000 29,297,000 10,075,000 10,785,000 94,487,000 90,197,000 6,963,000 9,54 1,000 191,446,000 175,269,000 2,771,000 2,700,000 6,585,000 6,773,000 16,407,000 15,697,000 55,779,ooo 50,932,000 17,6.41,000 17,301,000 u2,186,ooo 131,737,000 52,242,000 57,7 27,000 Last four weeks .............................. 1,1 ,226,286,000 First Nine Weeks of Year.............. 1,2,946,02 5,ooo $1,223,754,000 1,2,883,178,000 Per Cent Change 4.7 2.7 -34.5 -27.5 - 0.3 l'l.9 ,o.oQ. -12.2 19·7 6.7 -7.0 -12.!1 -u.8 - 8.9 1.5 2.0 -4.l - 5.9 6.6 4.8 -27.0 9.2 2.6 - 2.8 4-5 9-5 2.0 -14,8 10.5 0.2 2.'J. FAILURES: The report of R. G. Dun and Company showed commercial failures in the United States in February were 6.9 percent greater while the amount of liabilities was 4 percent less than in February 1927. There was one more failure in the Tenth District than reported for the same month last year, and the amount of liabilities was f,146,36o or 6.8 percent larger than a year ago. Dun's figures for February by Federal Reserve Districts: NUMBER Districts 1928 1927 First, Boston .......... 210 238 Second, New Yor 276 369 Third, Philadelphia...-.. 68 99 Fourth, Cleveland .. 186 162 156 Fifth, Richmond._························- 158 Sixth, Atlanta.. 294 191 Seventh, Chicago ............................ 128 260 Eighth, St. Louis ........ 105 127 Ninth, Minneapolis ........................ 72 77 TENTH, KANSAS CITY.....·--···· 144 143 103 Eleventh, Dallas.......·-···············-···· 47 262 Twelfth, San Francisco·-··············- 336 LIABILITIES 1928 1927 $ 3,950,081 $ 3,412,009 9,285,2o6 9,722..4-!II 2,296,593 8,272,430 4,727,509 3,494,055 4,304,424 4,248,597 7,254,n2 1,686,424 2,204,866 3,738,344 2,006,081 1,853,273 1,114,000 383,730 2,283,548 2,137,188 2,023,100 1,637,036 4,890,264 5,086,007 Twelve Districts.............................. 2,176 $45,070,642 2,035 $46,940,716 SAVINGS IN BANKS: Deposits to savings accounts in reporting banks in cities of this District increased .9 percent between February 1 and March 1, and the total reported on the date last mentioned stood 5.3 percent above the total on March 1, 1927. The number of savings accounts showed about the same percentage of increase over the preceding month and a year THE MONTHLY REVIEW 3 WHOLESALE TRADE IN THE TENTH FEDERAL RESERVE DISTRICT • SALES Reporting Stores Dry Goods...................... 7 Groceries.·-···················· 5 8 Hardware_················-·· Furnitur...___ _ __ 6 Drug.,__ __ 6 OuTSTANDINGS (Mo. END) Feb. 1928 compared with Jan. 1928 Feb. 1927 4.8 4.J 2.1 8.3 9•3 -I.I 30.2 14.4 -5.1 2J.I Feb. 29, 1928 compared with Jan. 31, 1928 Feb. 28, 1927 17.4 5·7 -1.3 -3.9 5.0 -I.4 8.1 -0.9 -0,J O.J ago. The figures which appear in the following show the amount of savings deposits and the number of accounts reported by selected lists of banks, but are not supposed to show totals for all banks in the reporting cities. SAVINGS DEPOSITS Banks Mch. x, 1928 Feb. 1, 1928 Mch. 1, 1927 Denver, Colo_ _ _ __ 6 t> 50,003,223 $ 49,521,720 $ 49,299,156 Kansas City, Kan....__ __ 4 2,932,238 2,880,202 2,605)522 Kansas City, Mo ____ ······-···· IO 18,707,127 18,456,297 16,549,470 Lincoln Nebr_ _ _ __ 3 2,787,003 2,831,621 2,938,788 Oklahoma City, Okla.............. 6 8,828,130 8,624,982 7,883,186 Omaha, Nebr_ _ _ __ 5 8,829,277 8,619,063 7,765,285 St. Joseph> Mo_··---6 8,358,354 8,224,365 7,680,918 Tulsa, Okla .. ______ 6 14,460,381 14,651,076 14,839,931 Wichita, Kans_····---8 5,873,640 5,866,038 5,037,644 Other Citi...,__ _ _ _ __ 4 1,044,552 1,096,142 1,085,848 Total __ .................................... • 58 $121,823,925 $120,771,506 $n5,685,748 SAVINGS ACCOUNTS Banks Mch.1,1928 Feb. 1, 1928 Mch. 1, 1927 DenTCr, Colo .. 6 107,07'J, 1o6,649 103,674 Kansas City, Kan 8,664 8,588 8,923 3 Kansas City, Mo __ ................ IO 96,127 96,778 88,544 Lincoln, Nebr ___ 14,622 14,617 I4,893 3 6 Oklahoma City, Okla... ........... 30,081 27,810 30,325 Omaha, Nebr 37,828 37,903 37, 192 5 20,8II St. Joseph, Mo .. _ 6 19,260 20,859 26,906 26,699 24,74o Tulsa, Okla.·--························ 5 1 5,5 1 5 Wichita, Kans .......................... 16,687 16,719 7 4,386 4,362 4, 195 Other Ci tics·-··························· 4 Total_ ______ 364,469 55 362,540 344,4II Trade WHOLESALE: Volume of wholesale trade in this District as indicated by the dollar sales of reporting firms in six important lines, was 5.9 percent larger in February than in January. Compared with February of Jast year, the combined sales of the same reporting firms showed an increase of 6.4 percent. In individual lines, wholesalers of dry goods, groceries and furniture reported increases in their February sales over both January 1928 and February 1927. Wholesale hardware trade expanded during the month, but aggregate sales were slightly below those for the same month last year. Sales of drugs were smaller than in January but larger than a year ago. Wholesale millinery firms reported the volume of their business was substantially larger than in January but showed a marked decrease as compared with February 1927.. February wholesale # CoLLECTIONS Feb. 1928 compared with Jan. 1928 Feb. 1927 1.0 4•5 -4.6 6.2 5,1 IJ,J -8.o 12.0 -0.I 7.8 STocK.s (Mo. END.) Feb. 29, 1928 compared with Jan. JI, 1928 Feb. 28, 1927 5.9 45.5 2 5·4 7.x 2.7 -3.1 5.0 1.3 6.2 5.9 stationery trade showed a decrease of 3.4 percent from January but an increase of 7.8 percent over February of last year. Distribution of implements and farm machinery during the month was considerably in excess of the volume at this time last year, according to reports. Merchandise stocks carried by wholesale firms in all lines were larger at the close of February than one month earlier. Inventories at the close of February were also larger than one year earlier for all reporting lines except furniture. Orde1s for fall goods received in February were reported by some wholesale drygoods firms as better than they had been at any time during the past five years. Underlying conditions, by which is meant the conditons of the farm population, were reported as having made further improvement through marketings of farm products and livestock. RETAIL: Sales of department stores in cities of this District reported to this bank, increased during February and the total for the month exceeded that for February 1927 by about 1.2 percent. Of the number of department stores reporting, eighteen showed larger sales than last year, sales of two stores ran about even, and fourteen showed decreases. The accumulated sales of the reporting department stores for two months of 1928 were slightly higher than during the first two months of 1927. February sales of men and women's clothing at reporting stores were smaller than a year ago, while sales of shoes were larger. Sales of furniture at reporting retail stores increased seasonally during February, but sales for the month were slightly under those for the same month last year. Reports of retail chain stores, operating in a large number of cities over the District, showed sales were running ahead of last year, after making allowance for an increase in number of stores operating this year. Stocks of department stores at the close of February were larger than one year earlier by less than 1 percent. Stocks of clothing, shoes and furniture at reporting retail stores were smaller than one year ago, while stocks of chain stores showed an increase. COLLECTIONS: Department stores reported collections during February represented 39.7 percent of amounts outstanding on J an aury 31. This figure compares with 41.3 percent for January, and with 38.9 percent for February 1927. Wholesale firms reported collections ran ahead of a year ago. At retail lumber yards collections were better than at this time last year while implement dealers reported collections were good. RETAIL TRADE AT 34 DEPARTMENT STORES IN THE TENTH FEDERAL RESERVE DISTRICT SALES STOCK.S (RETAIL) Number February 1928 Two Mo. 1928 February 29, 1928 Stores compared to compared to compared to Reporting February 1927 Two Mo. 1927 Jan. 31, 1928 Feb. 28, 1927 Kansas City._ 4 0.:2 -1.5 9.2 - 4.5 Denver-···--··· 5 -1.8 -4.7 II.8 1.9 Oklahoma City_ 3 3.2 8.6 27.4 7.2 Omaha.·-··-··3 5.1 o.8 26.2 1.7 Lincoln._·········2 5.0 8.1 12.3 - 3.0 Topeka...... ____ 3 3.3 -1.3 12.5 -10.1 TulsL----3 -1.5 o.6 21.6 8.o Other Cities__ II 1.2 9.1 8.4 - 4.0 STOCK. TURNOVER Two Months 1928 0.43 0.31 0.67 0.45 0.43 0.37 o.6o 0.25 1927 0.44 0.33 0.69 0.47 0.38 0.35 0.62 0.24 ACCO U NTS RECEIVABLE COLLECTIONS February 29, 1928 February 29, 1928 compared to compared to Jan. 31, 1928 Feb. 28, 1927 Jan. 31, 1928 Feb. 28, 1927 8.4 5.0 -15.2 --2.4 --25.4 -I.I -11.7 -5.3 --21.I 24.9 - 7.6 32.0 -14.7 2.3 - 4.7 -6.1 --26.o -I.0 - 6.6 13.5 -15.1 2.2 - 9.7 -4.7 --23.6 8.9 - 9.6 16.9 --23.4 13.4 - 8.6 9.3 Total..------··- 34 1.2 0.4 14.2 0.1 0.40 0.41 -10.0 NOTE: Percentage of collections in February on outstanding accounts January 31, all stores reporting, 39.7%. 2.2 -18.4 4.6 Collections same month last year, 38.9%. 4 THE MONTHLY REVIEW PLANTING INTENTIONS ON MARCH 1: U. S. Depart.. Agriculture The outlook for farm crops improved markedly..during Feb- ment of Agriculture figures showing reported percent of 1927 ruary as a result of mild temperatures and generous rains and harvested acreages farmers in seven states intend to plant this. snows over practically the entire area embraced in the Tenth season: Corn Spring Oats Barley White Tame District. Weather bureau reports from 138 stations in Kansas Wheat Potatoes Hay showed the month was the eighth mildest and the sixth wettest Colorado. __······················· IOI 100 JIO 135 I IO 95 February on record for forty-one years. In the western third Kansas .............................. 104 150 104 120 109 91 135 110 I6o II5 98 of Kansas drought that had prevailed since last fall was broken Missouri .........................._ 104 Nebraska .... _ __ _ IOI 120 IOI 111 96 on February 6 and subsequent precipitation to the middle of New Mexico.................... 120 120 120 100 100 115 March provided ample moisture for early spring needs. The Oklahom....__ _ _ _ 86 80 120 100 ¢ soil in Missouri was well soaked with moisture and conditions Wyoming.....................:···· 96 II8 101 140 170 170 for agriculture were more satisfactory than earlier in the season. 105 101.9 123.9 98.1 114.9 In Oklahoma the greatest improvement was in the western coun- Seven States ................._ 102 11 9·9 114.3 98.6 114.3 United Sta tes.........·-···· 101.7 98.5 ties of the state extending through the Texas Panhandle and WINTER WHEAT showed remarkable improvement in reinto New Mexico, where the soil had been dry during the winter. The state of Nebraska received a generous supply of moisture, cent weeks as a result of the favorable conditions mentioned. particularly the western part which early in March was blanket- A Kansas report made public March 7 said: "In the eastern ed with a wet, heavy show. The accumulated snow fall in the counties wheat greened up and made some growth. In the westRocky Mountain region during the winter was heavier. than the ern third of the state some wheat that never sprouted on account average for the season, assuring an ample supply of water for · of lack of moisture germinated and came up, and other wheat irrigation, as well as for ear-ly spring needs in dry farming areas. that seemed dead began to show green." Oklahoma wheat was making slow growth early in March and while green it was short SPRING PLOWING AND PLANTING: The favorable con- for the season. No serious insect infestation had been reported ditions during February and March gave farmers an early start and the condition of the crop ranged from poor to good with the with their preperations for the year's production of crops. Ex- average fairly good. The condition ranged from 75 to 80 percept in sections where the soil was too wet spring plowing made cent. Nebraska wheat, which showed an average condition of excellent progress. In extreme southern portions some cotton 80.4 percent on February 15, improved during the last half of was planted by March, although this work did not become general the month. At the middle of March the growing crop was in in producing sections of the District until near the close of the fine condition in the western part of the state and was very prommonth, and there was then an uncertainty as to the extent of ising elsewhere. A considerable portion of the Missouri wheat the acreage to be planted to cotton. Seeding of oats was about was injured by freezing and thawing during the open winter and completed in Oklahoma at the close of February and some of the abondonment would be large. Wheat prospects were generally. early planted crop was coming through the ground. Seeding good in Colorado and Wyoming and fair in northern New Mexico. of this crop made good progress in Kansas and Missouri during FARM LAND VALUES: The large and well-balanced farm the early half of March and later in the month was extending crops in the past few years, improvement in the position of the into Nebraska and the Mountain States. agricultural and livestock industries, and the abundant supply The Government's reports of farmers intentions to plant of money available for investment at favorable interest rates, spring crops, made public March 16, indicated the acreage of brought a revival of interest in farm lands, an upturn in values, corn in this District to be planted this year would slightly exceed and indications of a de:sire to own land. Reports from over the that of 1927. However, a full. realization of their intentions western corn belt states of Missouri, Kansas, Nebraska and Oklawould depend upon conditions 'for preparing the ground and plant- homa showed inquiries for productive farm lands were more nuing the crop during April and May. merous in recent weeks than for several years. A large acreage Plantings of early potatoes made rapid progress in the south- of farm lands was sold. Nebraska bankers, replying to a quesern part of the District in February and with the acreage show- tionnaire of the colonization department of the Burlington railing an increase over last year. The large commercial area in the road system, told of an increased demand for farms in that state Kaw Valley of Kansas had practically all been seeded by St. both for purchase and rental. These reports, as a whole, indicatPatrick's Day. ed farms for rent were "scarcer than ever known before,'' and Preparations were going forward for the planting of sugar the number of applicants far exceeded the number of farms for beets in irrigated sections of Colorado, Nebraska, Wyoming and rent. Many were willing to pay premiums for the rental of unKansas. To March 1, however, the Mountain States beet grow- improved lands. Unusual interest in government irrigation ~rs marketing association had not entered into agreement with farms in western Nebraska and in Colorado, Wyoming and New refiners on the price to be paid for this year's crop of beets. In Mexico was reported. The remarkable crops produced on unthe absence of an agreement the extent of the acreage to be plant- irrigated lands in 1927 attracted interest in dry farming seced this spring could not be foretold with any degree of accuracy. tions of the Rocky Mountain and Upper Great Plains area. While conditions for apples and other fruits throughout the Lands for which there had been no sale in recent years were beDistrict were regarded as favorable during March it was still ginning to move at fair prices. A number of large transfers of too early for accurate reports as to the outlook because of the ranch lands for grazing was reported this season. GRAIN MARKETINGS: The heavy receipts of corn at danger of killing frosts which often come in April. In New Mexico, where the ·first apple ·trees were planted three centeries ago primary markets in this District, which began in November with by Franciscan friars from Spain, the State College officials re- the harvesting of the 1927 crop, continued through February. ported prospects for a good apple crop were excellent. This Combined receipts at these markets during the month wer year's acreage of commercial strawberries in Missouri and Kansas 13,408,800 bushels, or 1,174,600 bushels less than in January was estmiated 28,300 acres, the same as last year, al though Ar- but 9,268,050 bushels or 223.8 percent more than was received kansas reports indicated 19,600 acres, an increase of 2,010 acres in February of last year. The February total carried the receipts for four months to 50,089,200 bushels, which is 32,964,850 bushels over 1927. 5 THE MONTHLY REVIEW or 192.5 percent more corn than was received at the five markets during the corresponding four months of the preceding corn year. Receipts of wheat at the five markets during February were 1,880,740 bushels less than in January and 3,6o7,690 bushels less than in February of last year, while receipts of oats for the month were 99,000 bushels greater than in the preceding month and 155,500 bushels greater than in the corresponding month last year. Arrivals of grain at the five markets during February arc shown in the following table with comparisons: Hutchinson._ Kansas City. __ Omaha ____._ St. Joseph__ Wichita·-········· Wheat Corn Oats Rye 1 _Barley Bushels Bushels Bushels Bushels ...Bushels 938,250 200,000 13 500 3,148,800 7,381,500 334,000 21,000 30,400 1,193,6oo 4,2n,200 764,000 81,200 78,400 407,400 1,384,500 80,000 1,162,350 231,600 19,500 Feb. 1928.. _...... 6,850,46o 13,408,800 1,2u,ooo 102,200 Jan. 1928 __ .....• S,731,200 14,583,400 1,n2,ooo n9,30::> Feb 1927 ___10,458,150 4,140,750 1,055,500 152,000 Kafir Bushels 343,200 519,200 18,000 108,800 880,400 189,6oo 1,209,000 19,700 683,300 GRAIN ON FARMS: According to the March 1 survey of the United States Department of Agriculture and cooperating State Boards of Agriculture, stocks of corn, oats, barley and rye on Tenth District farms on that date were larger and stocks of wheat were smaller than on March 1 last year. The reports indicated that 41.2 percent of the bumper corn crop of 1927 remained on farms on March 1, whereas, on the same date last year 35.3 percent of the crop of 1926 remained on the farms. Percentages of the 1927 crop of oats, rye and barley on farms on March 1 were larger than those on the same date last year. The reports for the states and parts of states which form this District show the number of bushels of grain on farms and total production for 1927 and 1926; GRAIN ON FARMS (Bus) Mch t, 1928 Mch. 1, 1927 Corn-··------ 256,007,000 109,364,000 Wheat.·-··------ 30,19o,ooo 33,379,000 Oats.................................. 44,656,000 41,060,000 Barley·-·······----- 6,370,000 3,299,000 Rye______ 928,000 667,000 PRODUCTION (Bus) Year 1927 Year 1926 622,644,000 308,674,000 '253,545,000 293,969,000 140,323,000 143,132,000 26,965,000 20,176,000 6,559,000 5,474,000 COTTONSEED PRODUCTS: The United States Bureau of Census report showed cottonseed received, crushed, and on hand at mills in Oklahoma during the seven months of the season of 1927-28, as compared with the like period in the season of 192627, as follows: August 1, 1927 to August I, 1926 to February 29, 1928 February 28, 1927 Received, ton, _ _ _ _ _ _ _ _ _ _ ..357,372 534,823 Crushed, ton•--··••· - - - - - 311,383 421,125 On hand, End of February, tons ...... -67,545 II4,078 The output of cottonseed products at Oklahoma mills during the seven months ending ·F ebruary 28, 1928 was 94,491,638 pounds of crude cottonseed oil, 146,555 tons of meal, 81,038 tons of hulls, with !inters, running bales, totaling 56,561. ·•Kanus City Omaha ..·-····· St. Joseph .. - .. Denver Oklahoma City Wichita ____ February 1928..-.. - .. January 1928.·-···· February 1927 __ .... Two 'Months 1928.... Two Months Hfl7- Flour Production The output of flour at mills in the Tenth District during February showed a little more than the customary seasonal decline from January, and the total for the month was 78,641 barrels or 3.9 percent less than in February 1927. Mills were operated in February at 62.9 percent of their full-time capacity, against 65.1 percent in January and 70 percent in February of last year. Flour produced at the leading milling centers, as reported by the Northwestern Miller, is here shown: Feb. 1928 Barrel11 Atchiso 1o6,857 Kansas City...... -.... 587,124 Omaha_.... 101,276 Salina.................... 16o,937 St. Joseph .... _.... 1o6,954 Wichita.......... 146,9()(i Outsid~------················· 691,127 Jan. 1928 Barrels 109,639 691,679 98,527 164,808 n3,629 138,780 688,345 Feb. 1927 Barrel, no,893 TotaL ............ _ _ _ _ _ _ _ 2,005,407 1,979,822 348,82'1 807,503 781,920 5o,590 1,237,539 744,733 58,774 1,ou,630 562,3¢ 48,018 694,233 449,253 109,3~ 2,259,169 1,307,129 108,,~3 I,~,44+ ~0,225 86,263 86,659 '137,549 147,753 1835,140 r During the eight months of the current wheat ycar-J uly 1, 1927 to February 29, 1928, inclusive-reporting mills in this District made 16,806,451 barrels of flour, as compared with 18,997232 barrels in the corresponding eight months of the preceding wheat year. The decrease in flour production in the eight months of the current wheat year was 2,190,781 barrels or 11.5 percent; whereas, the wheat crop of 1927 from which this year's flour was made was 40,524,000 bushels or 13.7 percent less than the wheat crop harvested in 1926. Early March reports indicated new business was coming to millers slowly, although inquiries were fairly numerous and sales were inclined to be a little more free following an advance in wheat on March 5. The Northwestern Miller reported family trade buyers continued to show more interest than bakers were showing. Export sal~s were small. Livestock Heavier market supplies of all classes of animals was the outstanding feature in the livestock situation in .the Tenth District during the first two months of the current year. Arrivals of hogs at the six leading markets in the District during January, including hogs shipped from the country direct to the Kansas City packing plants, numbered 1,021,630 head. This was the largest monthly total hog receipts since January 1925. Yet February saw a continuance of the heavy marketing of hogs and the (llOI:J.th's receipts of 1,237,539 head was ,the highest on record for February. Thus the reports show combined receipts of hogs at the six markots during the first two months of 1928 were 2,259,169 head, as compared with 1,604,444 head received during the first two months of 1927, an increase of 654,725 head or 40.8 percent. Receipts of cattle and calves during February were the smallest for any month since July, 1927, though the month's totals JANUARY MOVEMENTS OF LIVE STOCK IN THE TENTH DISTRICT RECEIPTS STOCKERS AND FEEDERS Cattle Calves Hogs Sheep Cattle Calves Hogs Sheep 20,063 406,837 133,547 129,005 3,629 9,666 37,591 18,533 7,168 423,626 111,679 245,328 18,306 2,831 14,109 3,5-29 7,261 189,018 36,491 157,468 5,467 4,389 19,304 585 28,392 4,712 83,014 204,258 15,480 1,781 1,798 19,241 20,176 1 6,387 44,99° 53 --------·--· ·······----- -------··· ------------23,660 8,143 -··--·----- ·---------· -·------ •··--····-90,o54 4,999 353,945 453,558 1,901,181 575,565 - - - --- --- ---76,8....., 108,852 70,025 185,~6 167,308 PACKERS PuR.CHAS&S Cattle Calves Hogs Sheep 69,914 17,778 369,117 98,810 70,244 301,201 1 65,457 4,97° 2 5,99 2 6,611 157,128 I'.20,541 2,683 10,584 79,209 16,296 13,532 40,906 418 5,73 2 2,566 8,012 88,053 7,995 19,469 71,187 69,072 84,973 35,342 9.JSJ 37,936 140,259 198,261 225,819 210.634 424,080 206,195 •5 1~181 8,843 8,601 3,8~ 19,365 15,977 17,444 -The Kansas City total of receipts and packu, purchases of hog• include direct ahipmenta to packera. 40,340 42,843 40,466 83,183 87,16o 1,035,614 842,6o5 504,655 1,878,219 1,049,577 '409,534 372,479 293,791 78:2,013 5¢,162 6 THE MoNTHLY REVIEW exceeded those for February of last year by 1.5 percent and 5.4 percent, respectively. Marketing of sheep and lambs were heavier than usual. Total receipts for February were the largest since last October and 65.8 percent larger than in February a year ago. Arrivals of horses and mules at the six markets showed the usual decline in numbers with the coming of the busy season on the farms. Total receipts in February were 17,177 head, 5,444 less than in January, but 3,145 more than in February of last year. PRICES: Therheavier market supples of hogs in February was accompanied by a further slight reduction which brought prices to the lowest level since 1924. The extreme top at Kansas City for the month, which was 'f,8.35 per hundred pounds on February 9, represented an extreme range of only 35 cents for the month. The top price of hogs for February 1927 was 'f,12.35. The February top price for fat steers was 'f,17 per hundred pounds, the highest February top in the history of the Kansas City market with the exception of February 1919. Other grades were relatively high, although the bulk of good beef cattle sold at considerably less than was paid for the extreme top on finished steers. Prices of sheep and lambs advanced during the month, wooled lambs on February 21 selling up to 'f,15.80, or 'f,1.55 higher than at the close of January and the highest price since June 1927. STOCKERS AND FEEDERS: The countryward movement of stock and feeding cattle during February was considerably smaller than in January but larger than in February of last year. However, the outgo of calves to the country exceeded that for the preceding month and was 130.6 percent larger than a year ago. There was considerable increase in the number of sheep and hogs moving from the markets to country feed lots, but the February totals were smaller than those reported a year ago. LIVESTOCK AND RANGE CONDITIONS: March reports indicated cattle and sheep on ranges and pastures throughout the District maintained a high condition, with minif!lum losses, due to the mild and open winter and ample supples of feed. The Colorado report, issued by the United States Division of Crop and Livestock Estimates, placed the condition of cattle in that state on March 1 at 100 percent and of sheep at 99 percent. Ranges showed only slight decline but were regarded as having a condition of 98 percent, 1 point lower than a month earlier and 3' points higher than a year ago. Comments were to the effect that cattle were mostly on the ranges, were being fed hay and other roughage and doing exceptionally well. Reports indicated sheep were in excellent condition and in some districts above normal. Losses have been light though flocks required special care in sections where the snow covering was heavy, particularly in the northwest and southwest parts of Colorado. There woulc:l be some additional stocking of sheep if breeding stock were available at favorable prices. A large percent of the 1928 wool clip was contracted at prices ranging mostly from 32 to 36 cents, the highest quotation being 38,½c. A considerable percent of the 1928 famb crop was contracted at prices ranging from 10 to u,½c, with some growers looking for,ward to even slightly higher prices. Lambs in the feed lots have been doing well and during most of February moved to market in an orderly manner, commanding more satisfactory prices than the earlier marketings. Meat Packing The slaughter of hogs at the six leading meat packing centers in this District during February, measured by the number of animals purchased at the public stock yards and those shipped direct to packers, was the largest for any month since January 1919 and the largest February slaughter of record. The number of sheep slaughtered in February exceeded that"'for January by 9.9 percent, and that for February a year ago by 39.4 percent and was the largest February total:of record . The returns showed further decrease in the slaughter of cattle and calves, both as compared with the preceding month and a year ago. The number of cattle slaughtered during the month was the smallest since July 1927 and of calves the smallest since April 1925. Increased supplies of hogs enabled packers to add to their stocks of pork and lard. At Kansas City stocks on February 29 amounted to 53,993,000 pounds. This was 22,347,000 pounds above the total on January 31, and 15,483,700 pounds more than reported February 28, 1927. Bituminous Coal The ~utput of soft coal at mines in this District declined seasonally during February and was 13.5 percent smaller in tonnage than in February 1927. The reports on production by states: Colorado .......... _ _ _ _ _ _ _ __ __ Kansas............ _ _ _ _ _ _ __ _ __ Missouri ..........................................- - -New Mexico·-························· - -- -- Oklahoma............ _ _ _ _ __ _ __ Wyoming................................ _ __ _ __ Feb. 1928 Jan. 1928 Feb. 1927 Tons Tons Tons 828,000 1,000,000 940,000 201,000 250,000 430,000 323,000 404,000 26o,ooo 245,000 335,000 250,000 227,000 290,000 220,000 530,000 715,000 620,000 Total_·········································· - - --···· 2,354,000 2,994,000 2,720,000 Petroleum The production of crude petroleum in the fields in the Tenth District declined during February and the daily average and gross output for the month were the lowest for any month since January 1927. The decline was the result of intensive efforts on the part or operatprs to exercise greater control over the output, preventing over-production and placing the industry on a sounder basis. The reports from the five producing states in this district showed daily average production of 839,700 barrels of crude petroleum during February, as against 849,100 barrels in January and 898,800 barrels in February 1927. The gross production in the five states: *Feb. 1928 Barrels Oklahoma .... ___________ 19,269,000 Kansas.... 3,206,000 Wyoming.. 1,599,000 Colorado............ 213,000 New Mexico................ 71,000 Jan. 1928 Barrels 20,956,000 3,346,ooo 1,723,000 219,000 79,ooo Feb. 1927 Barrels 19,828,000 Tota' - - - - - - - - - - - - - 24,358,000 *Estimated, American P etroleum Institute. :16,323,000 25,169,000 3,363,ooo 1,622,000 221,000 135,000 The field summary for February ~bowed fewer wells were completed than in January or in February a year ago. Although the daily average new production from wells completed in February was greater than in the preceding month, it was considerably less than- in the same month last year. A decrease in the number of new wells drilling was also indicated. The field summary: Barrels Daily Dry Gas Rigs-Wells Wells Completed New Produc~ion Wells Wells Drilling 801 Oklahoma........................ 280 114 42 51 ,955 IO Kansas ............................_ 94 10,615 271 34 628 I Wyoming_ __ __ 39 142 27 2 0 II» 2 ,555 Colorado .. _··-··-·······•·- ·· 8 2 II» 20 0 New Mexico.·-···········-4 Feb. 1928_ _ _ _ _ Jan. 1928 .... _ _ __ Feb. 1927__ __ _ 425 472 500 65,773 57,328 I55,426 179 152 157 53 78 34 I,418 I,458 2,541 Refinery reports for Oklahoma and Kansas showed an increase in refinery operations between February I and March 1, and. a THE MONTHLY REVIEW • small increase over March I of last year in the daily number of barrels run to stills. The figures for the two states: March 1, 1928 _ _ _ _ _ _ _ __ February 1, 1928 .......................................... _ __ March 1, 1927.............................. _ _ _ _ _ __ Plants Operating 56 55 64 Daily Runs Barrels 262,775 259,825 262,595 Lead And Zinc Shipmen ts of zinc and lead ores in the fields of Missouri, Kansas and Oklahoma increased during the four weeks ending March 3, but still were below those for the corresponding four weeks ending March 5, 1927. Shipments during this period are here compared with those for the preceding four weeks and the corresponding four weeks of last year: ZINC ORE Tons Value Oklahoma .........·-······························ 24,721 t, 890,269 Kansas.·------···················· 19,635 705,209 Missouri ............ _ _ _ _ 1,268 45,667 Four Four Four Nine Nine Weeks Weeks Weeks Weeks Weeks Ending Mch. Ending Feb. Ending Mch. Ending Mch. Ending Mch. 3, 1928_ 45,624 $1,641,145 4, 1928_ 43,996 1,596,995 5, 1927_ 55,u1 2,413,929 3, 1928.. 96,385 3,474,915 5, 1927.. u6,089 5,097,128 LEAD 01tE Tons Value 3,777 $ 3°3,495 3,9 26 3 14,490 68 5,270 7,77 1 $ 623,255 6,74-+ 573,240 738,816 7,957 16,488 1,364,200 18,269 1,710,256 The ore market took on a firmer tone during the week ending March IO with an advance of '1,2 in the price of zinc ore to $38 per ton for ordinary grades and 1,39 to $40 per ton for the higher grades. Lead ore was firm and in demand at '/,72. 50 per ton, but sales were light. Improvement in the situation was attributed to an announcement by the major portion of producers of further curtailment in production for an indefinite period. Lumber The lumber movement in the United States during the first nine weeks of the current year exceeded that for the first nine weeks of the preceding year in both softwoods and hardwoods, according to reports of all associations to the National Manufacturers Association. The figures here presented for the nine weeks ending March 3 show shipments ran considerably ahead of production and orders received by manufacturers were in excess of shipments: NINE WEEKS 1928 NINE WEEKS 1927 . Softwoods Board Feet Board Feet 1,993,882,092 1,746,573,532 CUL-------······························· 2,127,765,956 1,815,614,499 Shipments.·--···················---Orders._ .............................................. _. 2,303,545,804 I ,96o,242,3 I 2 Hardwoods 295,757,000 258,146,000 C u L - - - - - - ························· Shipments........................................... . 293,3°3,000 247,355,000 Order,.__ _ _ _ __ 260,323,000 3 15,727,ooo The four weeks ending March 3 saw a very perceptible expansion in production, shipments and orders for lum her as a result of early Spring conditions, which had a stimulating effect upon the •lumber trade throughout the entire country. There was a tendency among retailers to build up their sto9ks which were down to a low point. Lumber and material prices showed no material change during February. RETAIL LUMBER TRADE: Reports of 187 retail yards in the Tenth District showed February sales of lumber in board feet were 2.1 percent in excess of sales in January but were 3.5 percent less than the sales reported for February 1927. Stocks of lumber at the reporting yards showed an increase of 7.4 percent over January and were 2.5 percent larger than in February 1927. A summary of the reports of the 187 retail yards showing percentages of increase or decrease in the volume of busi- 7 ness for February 1928 over J anaury 1928 and February 1927 follows: Feb. 1928 Compared to Jan. 1928 Feb. 1927 Sales of Lumber, Board Feet.. _ _ _ _ __ Sales of all Materials, dollar.,___ _ _ __ Stocks of Lumber, end of Month·-···················Outstandings, end of Mont,...__ __ Collections during Mont,1..-_ _ _ _ _ __ 2.l - 5.8 7.4 0.9 -12.8 -3-5 - 8.o 2.5 -u.5 -4.0 Cement The Portland cement industry in the Tenth District in February produced 595,000 barrels, shipped 580,000 barrels and had in stock at the end of the month 2,143,000 barrels. The production of cement during the month was 294,000 barrels greater, and shipments were 48,000 barrels less, than in February 1927. United States production of Portland Cement in February as reported by 155 plants, was 8,785,000 barrels, an increase of 19 percent over February 1927, while shipments from plants during this month amounted to 6,559,000 barrels, or about 3 percent less than a year ago. Stocks of cement at mills were 27,339,000 barrels, or 16 percent higher than on the same date last year. FACE BRICK: The production of all shades, textures and grades of face brick at 61 plants located in I 5 states during February showed an increase of 9.1 percent over J anaury but a decrease of 6 percent as compared with the same mom th last year. Shipments in February were I I.I percent larger than in the pre-· ceding month and 6.1 percent larger than a year ago. Building New building and engineering work started in the Tenth District during the first two months of 1928 exceeded that for the corresponding months in 1927 in the number and value of permits issued in cities, while the value of contracts awarded in the District as a whole was slightly smaller. February reports of eighteen cities reflected unusual activity iu building for this time of the year, due for the greater part to mild weather permitting an early resumption of outdoor work. The reports showed February permits and their vaule exceeded those for January and were larger than in February 1927. The reports in detail: PERMITS Albuquerque, N . M Casper, Wyo-.. Cheyenne, Wyo Colorado Spgs. Colo Denver, Colo................................ Hutchinson, Kans ...................... Joplin, Mo Kansas City, Kans .. Kansas City, Mo ...... Lincoln, Nebr ...... Muskogee, Okla ........ Oklahoma City, Oki Omaha, Nebr Pueblo, Colo .....•.......................... St. Joseph, Mo ............................ Topeka, Kans .............................. Tulsa, Okla ...... Wichita, Kans.............................. 1928 81 2 1927 59 5 23 67 436 II 68 45 2 53 53 3S 62 223 69 13 271 40 92 33 88 345 168 22 88 282 54 18 137 48 88 38 79 255 144 ---- February totals........................-.2,II9 1,883 Total, 2 Months ...............·-····-3,897 3,229 '$ EsTIMATED 1928 159,781 $ 37° 129,290 62,535 CosT 1927 l99,4o5 1,000 22 ,355 34,535 977,400 1,200,200 6o,690 55,74 1 124,650 54,416 u5,375 95,955 Per Cent Change - 19.9 -63.0 478.3 81.8 -18.5 - 8.2 -56.3 20.2 16.4 - 17.7 47.9 1,835,850 1,576,675 140,350 u5,515 16,252 24,o45 1,349,402 55 2,415 144.l 125,660 141,675 12.7 22.0 u9,979 98,355 107,670 -72.5 29,595 191,584 300,855 -36.3 1,146,022 671,452 41.4 19-3 382,683 320,585 $ 6,891,258 $5,649,059 22.0 II,883,597 9,599,457 23.8 Contracts awarded for general construction in the Tenth District during February had a value of 1,13,792,810, showing an increase of $474,956 over January and a decrease of $2,380,000 as compared with February 1927, as reported by the F. W. Dodge Corporation. The combined total of contracts awarded in this district during January and February of this yearl was 1,27,no, 664. This figure compares with $27,630,000 for the first two months of 1927. 8 THE MONTHLY REVIEW PrllCDfT PIIIC!lff 150 50 Business Conditions in the United States Production and distribution of commodities increased further in February, while wholesale commodities prices remained practically unchanged. • Commercial loans of member banks showed a larger increase in February and the first half of March than at the same season in other recent years. PRODUCTION OF MANUFACTURES ANO MINERALS o,__ _._ __,__ __,__ _...___~o 1924 .1925 1926 1927 1928 Index of Production of Manufacturers and Minerals combined, adjusted for seasonal variations (r923-25 average, 100). Latest figures February, Manufacturers 109, Minerals 103. l'Cft C!IIT "11Ctlff 125 125 WHOLl!:SALE PRICES ~,__ _,____,____._-=___..._=-~ 1924 1925 1926 1927 1928 Index of U. S. Department of Labor Statistics (1926-100, base adopted by bureau). Latest figures, February 96.4. lllWOa a, DOUAIIS IIWONS t1I DOUMIS 10 10 2---t---+----+----+---12 MEMBER BAHK CREDIT o.__ _._ __,___ __.__ __,__ _.o 1924 1925 1926 1927 1928 Monthly averages of weekly figures for banks in 101 leading cities. Latest figures are averages first two weekly report dates in March. PEftCENT Plll C!NT 6 MONEY RATES IH NEW YORK - 8 Comm,rc,t,/ P1rpwRol, R, .r,,.,,. 8,v,I, Di'scovnf R11I~ --• Accepla11ce Role o '---'-----'-----"--:=-........ -=::-:-~o 192,. 1925 1926 1927 1928 Weekly Rates in New York Money Market. PRODUCTION: Production of m nufactures in February, as indicated by the Federal Reserve Board's index, increased 3 percent over January and was 2 percent larger than a year ago, while production of minerals declined slightly and continued to be substantially smaller than last year. Factory employment and payrolls showed a seasonal increase in February but continued at a lower level than a year ago. Output of iron and steel, automobiles, and agricultural machinery has increased considerably since the first of the year. Daily average production of steel ingots in February was larger than in any other month since last March, and current reports indicate that output was sustained in the first three weeks in March. Production of nonferrous metals also increased in February. Activity in the textile industries has shown little change since the first of year. Production of bituminous coal and crude petroleum, which decreased in February, increased slightly in the first half of March. Building contracts awarded were larger in February than in the corresponclng month of any previous year, reflecting cheifly a large volume of awards for residential construction in the New York and Chicago districts. Contracts let in the first two weeks of March were in approximately the same volume as in the corresponding period of last year. TRADE: Sales of wholesale firms in leading lines increase,d in February and were slightly larger than a year ago, while sales of department stores, after allowance for the customary seasonal changes, were in about the same volume as in January and somewhat smaller than a year ago. Stocks of merchandise carried by both wholesale firms and by department stores showed a seasonal increase in February. • Freight car loadings have shown somewhat more than the usual seasonal increase since the beginning of the year, but have continued to be in smaller volume than in the corresponding period last year, owing chiefly to much smaller shipments of coal. Loadings of merchandise in less than carload lots and of miscellaneous commodities have been less than in the corresponding period of the last two years, while loadings of livestock and grain products have been larger. PRICES: The general' level of wholesale commodity prices, as indicated by the bureau of labor statistics index, remained practically unchanged in February at approximately 96 percent of the 1926 average. There were decreases in the prices of cotton, sugar, nonferrous metals, chemicals and rubber, as well as a seasonal decline of dairy products. Increases occurred in prices of grains, metals, hides and leather products, and steel. In the first two weeks in March, prices of grains, hogs and cotton advanced, while those of cattle and rubber showed further declines. BANK CREDIT: From the middle of February to the middle of March the loans and investments of member banks in leading cities increased by '$200,000,000, reflecting a growth in the banks' commercial loans. The banks' loans on securities and investments showed little change for the period. The volume of reserve bank credit outstanding increased somewhat from February to March, chiefly in consequence of increased borrowings by member banks, which in part reflected further withdrawals of gold for export. During the four weeks ending March conditions in the money market were firmer, the rate on prime commercial paper increased from 4 to 4¼ percent and there were advances in time rates on security loans.
@FedFRASER