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• THE MONTHLY REVIEW Of Agricultural, Industrial, Trade and Financial Conditions in the Tenth Federal Reserve District FEDERAL RESERVE BANK OF K-ANSAS CI TY M. L. McCLURE, Chairman and Federal Reserve Agent A. M. McADAMS, Assistant Federal Reserve Agent and Secretary P. W. MoRGAN, Director of Research Vol. I 5 KANSAS CITY, Mo., THE SITUATION IN THE TENTH FEDERAL RESERVE DISTRICT Percentages of Increase, or Decrease (-), for February 1930 over January 1930 and February 1929 February 1930 Compared to January 1930 February 1929 Banki~g . .. Debits m 30 c1t1es ................................................ 2.4 - 2.3 Loans, 57 member banks ................................... . - 0.5 - 3.3 o.6 Investments, 57 member banks ........................ 2.8 Demand deposits, 57 member banks ............... . Time deposits, 57 member banks ..................... . - 2.1 I.7 Savings deposits, 50 banks ........ ........................ o.8 - 5.8 I.I Savings accounts, 47 banks ............................... . 3.5 Life Insurance Written ............................... . -0.4 3.6 Business Con:im~r.c~al failures, number.--························· L1ab1lit1es ......................................................... . Retail trade, 38 department stores.................... Wholesale trade, 5 lines combined ................... . Lumber sales, 179 retail yards ......................... . Grain Receipts, 5 markets Wheat................................................................... . Corn....................................................................... . Oats ....................................................................... . Rye ....................................................................... . Barley................................................................... . Kafir..................................................................... . Livestock Receipts, 6 markets Cattle ................................................................... . Calves .................................................................. . Hogs .... ................................................................. . Sheep..................................................................... . Horses-Mules..................................................... . Production Flour..................................................................... . Crude petroleum ................................................. . Soft coal ............................................................... . Zinc ore (Sh~pped) ............................................. . Lead ore (shipped) ............................................. . Cement................................................................. . Meat Packing, 6 cities Cattle...... ............................................................. . Calves ................................................................... . · Hogs .... ..................... . .......................................... . Sheep..................................................................... . Construction Building contracts awarded............................... . Building permits issued, 19 cities ...................... Value of per mi ts .............................................. -29.4 - -69.1 -18.2 0.5 4.8 - 4.9 1.3 2.6 60.5 2 9·3 13.2 -30.0 18.3 47.4 2.0 45.6 -67. 5 -65.6 24.3 80.2 44.6 -20.3 - 1 9.7 19.4 - 8.2 5.9 4o.5 - 3.1 9.6 30.0 - 6.5 -10.3 - 10.5 - 8.1 -11.9 1 5·3 -35.3 26.4 206.0 1 9•7 -29.1 -22.3 -33.4 5o.9 -18.7 2.0 3.5 15.6 -16.6 18.5 -18.4 6.5 21.I 132.9 110.3 NOTE: Bank debits are four weeks ending March 5, compared with the preceding four weeks ending February 5 and the correspo nd ing period ending March 6, 19 29. Percentage figures on member bank loans, investments and deposits are computed on amounts reported March 12, compared with February 12, 1930, and March 13, 1929. APRIL 1, 1930 T No. 4 HE appearance of Spring in the Tenth District early in February, and somewhat ahead of the scheduled time for the season's arrival, quickened trade and industrial activity, caused a resumption of out-door work in cities, towns and on farms, and brought relief to the unemployment situation. The reports for the month, reflecting the improvement in conditions, showed an increase in the general volume of business as compared with that for January. However, the progress was slow and irregular, and on the whole business in this District was still below that of a year ago. The dollar value of wholesale distribution in February, combined for five leading lines, showed a decided increase over January but was lower than for February 1929. Similarly, the dollar sales of retail department stores in leading cities was larger than in the preceding month but smaller than a year ago. Building and general construction work made a good start for the spring season. The value of contracts awarded in the District, and the value of building permits issued in leading cities, showed remarkable gains for February over the values reported for February last year. An outstanding feature of the reports was an impressive increase in contracts awarded for residential construction, the value of such contracts awarded this year being more than double the values reported last year .. Manufacturing plants in this District, operating on spring schedules and with larger forces, reported a marked increase in the February production over that for January. While operations of a number of large plants exceeded those of a year ago the reports show that manufacturing as a whole was not up to that of last year at this time. Makers of combine harvesting machines, and of grain storage tanks, speeded up their output in preparation for the year's harvest, soon to begin. Automobile assembly plants increased their operations and in the first week of March the daily production of cars was hrger than that repor ed a month earlier, but somewhat less than a year ago. The building of airplanes and equipments, one of the new industries in this District which has made remarkable progress in the last year, showed further increase during February in the number of plants operating, number of employees, and in the output. In food lines, the reports showed the slaughter. of meat animals during the month was normally heavy and exceeded that for February of last year for all classes except hogs, which showed a decrease. The output of flour was smaller than for the corresponding month last year. For the mineral industries the reports showed the February output of crude petroleum and bituminous coal was smaller than in either the preceding month or the corresponding month last year. Production and shipment of zinc and lead ores increas- This Copy Released For Publication In AFTERNOON Newspapers March 26 2 THE MONTHLY REVIEW ed, but were smaller than a year ago. The manufacture of cement in February was larger than in January or in February of last year. Conditions during February and March were highly favorable for the agricultural and livestock industries. Farmers were given an early start for their spring plowing and plantings of oats, barley and other crops. Wheat came through the winter in generally good condition, with relatively small losses from winter killings. At the middle of ·M arch the reports indicated that, save for some sections where there had been damage by soil blowing, lack of moisture or insect pests, wheat made satisfactory progress and the condition at that time was fully up to that recorded for the season in previous years oflarge production. Grass on ranges and pastures throughout the District greened up and all classes of livestock were reported in excellent health and flesh. Payments by Check Debits to individual accounts by banks in thirty cities of the Tenth District moved through February at a higher average per day than in January but failed to attain the daily average recorded for February last year, according to weekly reports of clearing houses made to the Federal Reserve Bank of Kansas City. The combined total of debits of the thirty cities for four weeks ending March 5, which included one holiday, was $1,374,9u,ooo. This total was $32,793,000, or 2.4 percent, greater than that for the preceding four weeks ending February 5. This gain is contrary to the usual seasonal trend, as in former years the volume of debits for February showed a decline from January. In comparison with the corresponding period in 1929, the amounts debited for the.four weeks ending March 5, this year, showed a decrease of $32,127,000, or 2.3 percent. Of the thirty cities reporting, nine showed gains and twenty-one losses as compared with the like period last year. DEBITS TO INDIVIDUAL ACCOUNTS FouR WEEKS ENDING March 5, 1930 March 6, 1929 Albuquerque, N. M ·-·············· ········"···· 1, n,674,000 'I, 12,751,000 Atchison, Kans.............. ...................... 5,838,000 5,840,000 Bartlesville, Okla... .............................. 20,669,000 18,662,000 Casper, Wyo·--····································· 6,114,000 6,965,000 Cheyenne, Wyo................................... 5,515,0001 5,716,000 Colorado Springs, Colo.-..................... 12,7n,ooo 1 14,119,000 Denver, Colo........................................ 158,038,000 ti7,020,ooo ~;~~o~~~~~b· ;~~~~~:~~~·.~·.·.: : :·.: : .: : :~: : : : Grand Junction, Colo..................... Guthrie, Okla........................................ Hutchinson, Kans................................ I11dependence, Kans.. .......................... Joplin, Mo............................................ Kansas City, Kans.............................. Kansas City, Mo.................................. Lawrence, Kans.................................... Lincoln, Nebr.-................................... Muskogee, Okla.................................... Oklahoma City, Okla.......................... Okmulgee, Okla.................................... Omaha, Nebr........................................ Parsons, Kans...................................... Pittsburg, Kans.................................... Pueblo, Colo·-······································· Salina, Kans.- ...................................... St. Joseph, Mo._................................... Topeka, Kans·--····················-········••···· Tulsa, Okla.-......................................... Wichita, Kans.............. ........................ 1 : ~~~:= 2,754,000 3,197,000 20,580,000 12,677,000 10,882,000 18,006,000 380,232,000 4,807,000 31,898,000 10,029,000 n6,496,ooo 5,842,000 207,800,000 2,649,000 5,587,000 i 16,488,000 I n,342,000 , 48,431,000 19,620,000 136,039,000 72,274,000 Total 30 cities, 4 Wks·--····················· $1,374,9n,ooo Total 30 cities, 9 Wks..·-····················· 3,157,219,000 Percent Change - 8.4 - 0.1 10.8 -12.2 - 3.5 -10.0 -10.7 t::~i~:~: =~:~ 3,179,000 3,354,000 17,168,000 11,281,000 16,150,000 18,109,000 398,521,000 4,816,000 34,206,000 10,404,000 no,796,000 7,464,000 206,930,000 2,832,000 6,092,000 19,540,000 u,214,000 53,348,000 16,089,000 135,339,000 62,106,000 -13.4 - 4.7 19.9 12.4 -32.6 - o.6 - 4.6 - c.2 - 6.7 - 3.6 5.1 -21.7 0.4 - 6. 5 - 8.3 -I - $1,407,038,000 3,239,700,000 - 5.6 1.1 9.2 21.9 0.5 16.4 2.3 2.5 Banking and Credit Despite a seasonal expansion in industrial and trade activity, and plentiful supplies of loanable funds at lower rates than hav.Ja obtained for many months, the volume of credit outstandin'=?W at reporting member banks in the Tenth District declined during February and the early half of March. Demand and time deposits in reporting member banks increased in recent weeks although they showed decreases as compared with a year ago. MEMBER BANK CREDIT: Loans of fifty-seven reporting member banks in this District declined $2,238,000 between February 12 and March 12, and the total reported as of the date last mentioned was the iowest recorded for a weekly reporting date since December 5, 1928. The decline in the last four weeks was in "all other loans,'' principally commercial in character, as security loans increased $842,000 during this period. Total investments increased $1,253,000 in the four weeks ending March 12 but were $25,049,000 less than a year ago. Net demand deposits increased $13,269,000 in four weeks with the total on March 12 the highest since January 22, but $29,361,000 below the total on March 13, 1929. Time deposits also showed a gain in four weeks, amounting to $2,96T ,ooo, but were $3,822,000 less than a year ago. RESERVE BANK CREDIT: Member banks in the Tenth District reduced their indebtedness to the Federal Reserve Bank of Kansas City during the four weeks ending March 12 by II,321,735. The total of discounted bills held by this bank on that date was $16,476,985 less than one year ago and the smallest for a weekly reporting date since March 28, 1928. This bank's holding of purchased bills on March 12 showed a gain of 10,045,830 over February 12 and a gain of $795,055 over March 13, 1929. Total bills and securities held by this bank on March 12 showed decreases of $1,275,905 for the four weeks and 24,131,789 for the year. Federal Reserve Notes in circulation decreased $2,015,950 from February 12, but showed an increase of $II,982,150 over March 13, 1929. THE CONDITION STATEMENTS: A summary of the principal assets and liabilities of fifty-seven reporting member banks in selected cities of this District, and of the Federal Reserve Bank of Kansas City, as shown by weekly statements as of March 12, 1930, compared with February 12, 1930, and March 13, 1929, follows: Fifty-seven Reporting Member Banks Mar. 12, 1930 Feb. 12, 1930 Mar. 13, 1929 Loans and investments-total... ............... $652,431,ooo $653,416,000 $692,274,000 Loans and discounts-total.. .................... 438,828,000 441,066,000 453,622,000 Secured by stocks and bonds .............. 136,402,000 135,560,000 132,196,000 All other loans & discounts ................ 302,426,000 305,506,000 321,426,000 Investments-total.. .................................. 213,603,000 212,350,000 238,652,000 U. S. Securities.................... ......... ....... 94,355,000 95,177,000 n6,226,ooo Other bor;ids, stocks and securities .... n9,248,ooo n7,173,ooo 122,426,000 Reserve with F. R. Bank........................ 56,762,000 52,638,000 56,855,000 Net demand deposits .............................. 489,135,000 475,866,000 518,4¢,000 Time deposits·-········································· 175,969,000 173,008,000 179,791,000 Government deposits.............................. 88,ooo 84,000 Federal Reserve Bank of Kansas City Mar.12,1930 Feb.12,1930 Mar.13,1929 Total gold reserves ..................................$135,070,761 $132,261,916 $104,784,872 Reserves other than gold ............. ........... 7,96o,554 8,855,564 5,718,359 Total reserves ............................................ 143,031,315 141,117,480 110,503,231 Bills discounted .......... ... .......................... 14,721,716 26,043,451 31,198,701 Bills purchased .... ···· ··················-······•······ 10,316,419 270,589 9,521,364 U. S. Securities....................................... 3,063,000 3,o63,ooo 9,763,300 Other securities.......... .... .......................... 1,500,000 Total bills and securities............... ........ 28,101,135 29,377,040 52,232,924 Total resources............ ................... ....... 217,880,306 218,698,098 212,707,847 Federal Reserve Notes m circulation.. 78,823,780 80,839,730 66,841,630 Total deposits.... .. .................................... 89,666,968 92,074,957 92,582,746 SAVIN GS IN BANKS: Deposits in savings accounts in fifty reporting banks in the principal cities of this District totaled .1 THE MONTHLY REVlEW • Stores Reportr • • ing Kansas City.......... ..... 4 Denver........................ 5 Oklahoma City.......... 3 Omaha._....................... 3 Lincoln........................ 2 Topeka........................ 3 Tulsa............................ 4 Wichita........................ 4 Other Cities................ 10 RETAIL TRADE AT 38 DEPARTME T STORES IN THE TENTH FEDERAL RESERVE DISTRICT SALES STOCKS (RETAIL) STOCK TURNOVER ACCOUNTS RECEIVABLE CoLLEC'rIONs Feb. 1930 2 Months 1930 Feb. 28, 1930 Feb. 2 Months Feb. 28, 1930 Feb. 1930 compared to compared to compared to compared to Compared to Feb. 1929 2 Months 1929 Jan. 31, 1930 Feb. 28, 1929 1930 1929 1930 1929 Jan. 31, 1930 Feb. 28, 1929 Jan. 1930 Feb.1929 - o.8 - 5.8 8.7 - 3.3 .19 .19 .39 .40 -16.2 3.8 19.4 0.2 -16.0 8.o - 2.4 - 4.8 8.1 - 6.9 .17 .17 .35 .36 - 13.6 - o.6 6.9 - 3.2 19.4 - 5.2 .27 .26 .50 .52 - 12.1 10.0 -22.6 3.0 - 8.5 I.O - 10.7 3.0 - 7.2 14.3 - 3.0 - 5.1 3.3 - 17.3 .20 .17 .42 .38 - 9.9 Even -18.0 0.5 6.2 I.I 4.7 - 6.6 .15 .14 .30 .30 - 9.9 II.6 -14.3 0.7 4.0 - 4.1 24.4 1.6 .23 .25 .47 .53 - 7.1 24.2 -23.7 6.3 - 12.1 - 14.6 19.8 - 1.8 .18 .21 - 14.6 - 2.0 - 1 7.5 3· 1 7.4 - 1.5 9.1 - 7.7 .15 .13 .29 .27 - 7.5 1.6 -23.0 4.9 Total............................ 38 - 1.3 - 4.4 12.1 - 5.3 .20 .19 .40 .40 -12.3 4.0 OTE: Percentage of collections in February on accounts January 31, all stores reporting 40.0. Collections same month last year 40.3. $114,141,224 on March I. This total indicated a decrease of $909,233 from the total reported on February 1, and a decrease of 7,076,899 from the total reported March 1, 1929. Fortyseven of these bani s reported an aggregate of 390,975 savings accounts on March 1, an increase of 4,339 for the month and an increase of 13,374 for the year. GOVER MENT FI A CI G: The Government's offer of $450,000,000 of 3¼ percent Treasury Certificates of Indebtedness, dated March 15, 1930 and to mature December 15, 1930, brought subscriptions totaling 1,290,990,000, of which allotments were made to the amount of ;,483,341 ,000. Tenth District subscriptions to this issue, received at the Fiscal Agency department of the Federal Reserve Bank of Kansas City, totaled 17,849,000, of which 7,156,500, or about 40 percent, was allotted. Life Insurance ales of new paid-for ordinary life insurance in the seven states which form this District totaled $54,201 ,ooo for the month of February, as compared with $52.,309,000 for the corresponding month last year. The increase for this year was $1,892.,000 or 3.6 percent. The reports show new insurance written in Colorado, Kansas, Nebraska and Oklahoma exceeded that of a year ago, while insurance written in Missouri, New Mexico and Wyoming fell below the totals for February of last year. Business Failu res Commercial failures in the Tenth District for the month of February showed marked declines in number and amount of liabilities as compared with January of this year and February oflast year. The reports of R. G. Dun and Company show there were 115 failures in this District in February, while in January there were 163, and in February a year ago 12.1. Liabilities involved in February failures amounted to 1,231,333, which compares with $3,982,860 for the preceding month and $1,505,036 for the corresponding month last year. According to Dun's report there were 2,2.62. failures in the Uni ted States during February, involving a total of $51,326,325 of liabilities. These totals compare with 1,965 failures and $34,035,772 of liabilities in the same month last year. -13.1 Trade The total February sales of thirty-eight reporting department stores located in seventeen cities of this District showed an increase of five-tenths of.one percent over the total sales for January. Due to the fact there were two business days less in February than in January, the daily volume of sales for the month averaged about 9 percent higher than that for the preceding month. However, the February volume of retail trade at the reporting department stores was 1.3 percent lower than that for February a year ago, and accumulated sales for the first two months of 1930 were 4.4 percent below those for the like period in 1929. Of the stores reporting, twenty showed increases for February over the same month last year, while eighteen reported decreases in their sales volume as compared with a year ago. Stocks of the reporting department stores at the close of February averaged 12..r percent higher than at the close of January but showed a decrease of 5.3 percent as compared with stocks at the close of February 1929. Retail furniture stores reported their February sales averaged 18 percent below those for the same month last year. Stocks on hand at the reporting furniture stores were slightly larger than a year ago. WHOLESALE: The dollar volume of sales of reporting wholesale firms in this District for the twenty-four trading days in February showed a gain of 4.8 percent over that for the twentysix trading days in January, and a loss of 2.6 percent from that for the twenty-four trading days in February last year. The upturn in wholesale distribution was generally attributed to the mild weather during February, which gave spring trade an earlier start and stimulated purchases of goods by retailers to meet their trade requirements. The reports by separate lines show February sales of drygoods, hardware and furniture were larger than in January, while sales of groceries and drugs were smaller than in the preceding month. In comparison with a year ago, the February reports showed decreases in sales of drygoods and groceries, and increases in sales of hardware, furniture and drugs. Inventories of wholesale firms at the close of February showed WHOLESALE TRADE IN THE TENTH FEDERAL RESERVE DISTRICT COLLECTIONS OUTSTANDINCS SALES Feb. 28, 1930 compared with Feb. 1930 compared with Reporting Feb. 1930 compared with Jan. 31, 1930 Feb. 28, 1929 Jan.1930 Feb. 1929 Stores Jan. 1930 Feb. 1929 - 9.1 -:-- 9.1 7.7 - 5.1 6 19.5 - 6.o Dry Goods ..................................... . :-:- 2,1 4•9 - z.5 - 8.9 5 - 12.5 - q.9 GroceriCS-.... - - - - - -12.4 - 6.2 4.6 13.1 8 II.2 7.0 Hardware.............. - -- · - 4·9 1.3 3.9 7.0 6 42.5 3.4 Fumiturc........... - - - -----····· 3.6 . 0.4 - 2.5 0,2 6 - 4.8 5.8 Drags .............................................. STOCKS Feb. 28, 1930 compared with Jan. 31, 1930 Feb. 28, 1929 -II.I -16.I 33.'2 -13.6 o.5 - 7.3 - 3.4 0.7 - 0.5 - 6.6 THE MONTHLY REVTEW 4 stocks of furniture were larger than on the corresponding date last year, while stocks of drygoods, groceries, hardware and drugs were smaller than a year ago. COLLECTIONS: Department stores collections in February amounted to 40 percent of their outstandings as of January 31, compared with 39.2 percent for January and 40.3 percent for February last year. Wholesale firms reported their collections were about up to those of a year ago, while some distributors of implements and farm machinery reported collections were a little slower than at this time last year. Lumber Sales of lumber during the month of February, reported by 177 retail yards in cities and towns throughout the Tenth District, were 60.5 percent above those for January and 29.3 percent above those for February a year ago. Lumber sales at these yards totaled 4,409,000 feet for February, against 2,747,000 feet for January and 3,4II,ooo feet for February 1929. The month's sales of all materials, in their dollar value, also were substantially larger than for either the preceding month or the same month last year. Stocks of lumber at the reporting yards at the close of February were 1.8 percent larger than one month earlier but were I.I percent smaller than at the close of February last year. The lumber business for February 1930 is compared with that for January 1930 and February 1929 in percentages of increase or decrease: Feb. 1930 Compared to Feb. 1929 6o.5 29.3 l 5.3 17.4 1.8 - 1.1 5.8 2.0 -16.4 ·- 7.6 Jan. 1930 Sales of lumber, board feet.................................... Sales of all materials, dollars·-······························· Stocks of lumber, board feet.................................. Outstandmgs, end of month.................................. Collections during month·-·······- - - - - While inproved weather and road conditions in February brought increased activity in the manufacture and distribution of lumber throughout the United States, the reports to the National Lumber Manufacturers Association showed the volume for the month was still below that for February last year. The lumber movement in the United States for the first nine weeks of 1930, based on the reports of identical mills, is compared with that for the like period in 1929 in the following: NINE WEE.CS ENDING March 1 1930 Production, M. fcet·--·······-························ 2,082,221 Shipments, M. feet...................................... 2,130,647 Orders, M. feet............................................ 2,202,228 March 2 1929 2,404,912 2,532,582 2,739,283 Percent Change -13.4 -15.8 -19.6 Lumber carloadings in the United States, computed from weekly figures of forest products carloadings published by the American Railway Association, totaled 162,848 cars for the year to February 22, as compared with 188,051 cars for the like period in 1929, a decrease of 13.4 percent. the. BUILDING IN TENTH DISTRICT CITIES PERMITS EsTIMATED CosT 1930 1929 1930 1929 86 53 f, 138,553 f, I 11,782 Albuquerque, N. M·--············· Cheyenne, Wyo ........................ 19 13 43,090 22,893 Colorado Springs, Colo._......... 45 32 69,991 20,295 Denver, Colo .........................!-. 371 269 549,350 637,700 Hutchinson, Kans .................... 33 26 82,950 24,085 Joplin, Mo................................ 14 18 30,770 73,500 Kansas City, Kans ................ . 49 19 83,350 43,980 131 1,187,550 1,185,600 Kansas City, Mo..................... . 185 Lincoln, Nebr._......................... 33 II 56,240 188,375 Muskogee, Okla........................ 16 5 25,775 5,42o Oklahoma City, Okla .............. 370 227 1,854,270 1,347,080 111 ,045 27 Omaha, Nebr........................... . 38 54,945 58 69 26,802 231,722 Pueblo, Colo._ .......................... . Salina, Kans............................. . 23 9 48,465 39,285 Shawnee, Okla ......................... . 23 22 20,463 87,150 15 12 20,625 27,896 St. Joseph, Mo......................... . 51 23 r,129,917 51,065 Topeka, Kans·--······················· Tulsa, Okla._............................ . 188 159 525,850 352,090 Wichita, Kans ......................... . 195 96 772,057 667,703 February.................................... 1,812 Two Months ............................ 2,590 1,221 2,529 f,6,721,013 f,5,228,666 9,916,450 9,787,11 I Percent Change 23.9 88.o 244.9 -13.9 244.4 -58.1 89.5 0.2 -70.1 375.6 37.7 -5o.5 -88.4 23.4 -76.5 -26.1 2112.7 49.3 15.6 28.5 1.3 Lead and Zinc Cement Cement production in February rose 19.7 percent above the January figure and 50.9 percent above the figure for February of last year, as reported by mills in the Tenth District to the Department of Commerce. February shipments of cement were more than double those for January or for February last year. On account of the heavy shipments during the month stocks of finished cement on hand at the end of February were lower than either a month ago or a year ago. Statistics for the month, with comparisons,. follow: · Feb. 1930 Barrels Production ............................................... . 839,000 Shipments................................................. . 868,ooo tocks, end of month .............................. 2,275,000 5 Building The mild weather in February brought a resumption of outdoor activity in all sections of the Tenth District, and complete returns for the month inclicated bmlding and general construction work had an early start for the Spring. . The February report of the F. W. Dodge Corporation showed building contracts awarded in this District for the month of February totaled $18,071,222, an increase of $3,149,447 or 21.1 percent over January, and an increase of $5,197,340 or ·4~•4 percent over February 1929. Contracts awarded for residential construction during the month represented a value of $4,266,441, this total indicating an increase of $2,142,467 or 100.9 percent over residential contracts awarded in January, and an increase of $475,809 or 12.5 percent over those for February 1929. Reports to this bank show the number of building permits issued in nineteen cities during February increased 132.9 percent over January and 48.4 percent over Febru ary of last year. In point of value of permits the February total stood 110.3 percent above that for January and 28.5 percent above that for February of the preceding year. Of the nineteen cities, twelve reported the value of February permits was larger than in February a year ago, while seven reported the value was smaller than a year_ago. Among the permits issued during the month was one for a hew high school building at Topeka, Kans., estimated to cost $1,073,637. The record for the first two months of the year shows permits issued in the nineteen reporting cities exceeded those for the like period in 1929, · both in number and value. Jan. 1930 Barrels 701,000 313,000 2,304,000 Feb. 1929 Barrels 556,000 368,000 2,323,000 Reports of the lead and zinc· industry in the Tristate District comprising Missouri, Kansas and Oklahoma, reflected sizeable increases for February over January in the production and shipment of ores. The February returns, however, sh.owed the tonnage of ores produced and shipped were considerably below · those recorded for the corresponding month last year. The demand for lead ore during February was described as more or less seasonal, whereas, at this time last year the demand for lead was increasingly heavy with the advance into the Spring season. While the demand for zinc ore was more active during the month than at any · time since the beginning of the year, purchases of ores were not up to expectations. ' Prices paid producers for leacl ore averaged $7 5 per ton during 5 THE MoNTHLY REVIEW February, as compared with weekly averages of $90 to $97.50 per ton for the corresponding period last year. In the week ending March 10, however, the price of lead ore declined $10 per ton to an average of $65 per ton for the week, while in the corresponding week last year the price of lead ore rose '$2. 50 per ton to an average of $100 per ton. Prices paid producers for zinc ore continued unchangeci during February and into March at an average of $37 per ton, as compared with $41 per ton for the same period last year. SHIPMENTS OF ZINC AND LEAD ORE LEAD ORE ZINC ORE Tons Oklahoma .............................................. 22,961 Kansas·--··············································· 15,922 Missouri............................................... 1,750 Value '$ 839,007 582,802 63,546 4 Wks. ending March 1, 1930............ 40,633 4 Wks. ending Feb. 1, 1930................ 32,149 4 Wks. ending March 2, 1929............ 52,265 '$1,485,355 1,125,:215 2,n8,133 Tons 2,653 3,059 Value '$198,975 6,525 5,799 1,895 8,7° 1 '$434,925 142,125 794,795 Petroleum The production of crude petroleum in Tenth District fields during February averaged 806,900 barrles per day, 5,100 barrels below the daily average for J anuary and 71,100 barrels below the daily average for February, 1929. The reduction was largely ·in Oklahoma where efforts were made to stabilize production. Colorado and Wyoming reported slight reductions in the output, while in New Mexico production for the month showed an increase of 330 percent over February 1929. The reports on gross production in five states: Feb. 1930 Barrels Oklahoma ..... ,...................................... 17,693,000 Kansas·--············································· 3,050,000 Wyoming............................................ 1,419,000 Colorado .............................................. 141,000 288,000 New Mexico ........................................ J an. 1930 Barrels 20,121,000 1,448,000 138,000 308,000 Feb. 1929 Barrels 20,070,000 2,836,000 1,424,000 185,000 67,000 Total.................................................... 22,591,000 25,170,000 24,582,000 Reports for February showed a sharp decline in the number of new wells .completed, both from the preceding month and the corresponding month last year. The number of barreis daily new production brought in during February was in about onehalf of the volume of new production in January. Except for that month, however, new production was the largest since July 1927. N ew drilling operations under way on March 1 showed a seasonal increase over one month earlier and a small increase over one year ago, as the summary shows: Wells Barrels Daily Dry Gas Rigs-Wells Completed New Production Wells Wells Drilling Oklahoma........................... 163 242,983 39 20 1,022 Kansas................................ 59 8,774 27 8 322 Wyoming............................ 7 . 2,795 2 2 144 Colorado.............................. 2 2 o 96 New Mexico ................. .'...... 1t 13,980 3 2 97 February 1930.................... January 1930...................... February 1929.................... 242 475 399 268,532 596,062 84,346 73 1 53 1 36 32 48 47 Petroleum refinery operations in Oklahoma and Kansas on March 1 showed increases over one month ago and a year ago, as the following figures indicate. March t, I 930...... .........................................~ ...... Febniary I, 1930.................................................. March 1, 1929...................................................... Pfants Opera~ing 57 56 56 The output of soft coal in the six producing states of the Tenth District declined precipitously during the abnormally warm weather in the month of February, in contrast with the abnormally cold weather in January and resultant reduction in the fuel demands of domestic consumers. The returns for February show the tonnage mined in these states during the month fell 1,202,000 tons below that for January and 906,000 tons below that for February 1929. The decline in production was general through the District, as the following totals compiled from the weekly returns of the United States Bureau of Mines, Department of Commerce, indicate: · 229,425 87 3, 1 55,000 Bituminous Coal Barrels Daily Runs Crude Oil to Stills 293,55° Colorado.................................................... Kansas ...... ·... ............................................ Missouri .................................................... New Mexico .............................................. Oklahoma ................................................. . Wyoming............ ,.:··································· *Feb. 1930 Tons 746,000 250,000 334,000 150,000 280,000 443,000 Jan. 1930 Tons 1,281,000 296,000 410,000 . 241,000 440,000 737,000 Feb. 1929 Tons 1,156,000 310,000 390,000 235,000 383,000 2,203,000 3,405,000 3,109,000 Total.......................................................... *Estimated. Total Unit~d States production of soft coal during the 19291930 coal year to March 8, (approximately 288 working days), amounted to 491,037,000 net tons, which compares with production of 482,756,000 tons in the corresponding period in the prepreceding coal year. Flour Production During the twenty-three milling days in February, flour mills in the Tenth District were operated at 66. 1 percent of their fulltime capacity, against 63.9 percent for -the twenty-six. milling days in January, and 74.2 percent for the twenty-three milling days in February last year, according to weekly reports of millers to the Northwestern Miller. While these figures indicate a higher rate of activity. for February over J anuary, the difference of three milling days gave February a smaller output of flour by 135,610 barrels than for the preceding month. In comparison with the like month and a like number of milling days in the preceding year, this year's February output of flour showed a decrease of 227,437 harms. · Reviewing the flour trade in this District covering the closing period of February, the Northwestern Miller of March 5 said: "Demand for flour was rather shatply stimulated at the middle of last week when wheat reached its low point, terminal mills profited rather more from the situation than interior mills, who were handicapped by relatively high prices for wheat due to farm board buying. Interest, however, was chiefly confined to small lots, only a few fair-sized orders being worked to bakers. D~piand also was largely for prompt shipment, neither. millers nor buyers feeling that conditions warranted anything substantial in the way of future commitments. Later in the week, when the market was stimulated by _government buying of futures, demand fell off rather sharply and sales bec·ame extremely light.'' FLOUR PRODUCTION IN THE TENTH DISTRICT Feb. 1930 •Jan. 1930 Feb. 1929 Barrels Barrels , Barrels ' Atchison .......,. ....................... :..............:.... 121,581 133,303 ' 115,194. Kansas City............ - ............................... . 577,072 606,048 600,268 Omaha...................................................... 85,685 99,841 . 92,962 137,377 _1 39,208 181,340 Salina. __...... ······················- ·..................... . 69,215 .. 1u,620 . uo,559 St. Joseph.. •.··········-········ . •.....·... , ............ .171,346 · ·· · 15i:;6n :150,j12 . 776,309 832,564_. . 915,387 .~~~~~=--·.·:.: : ~: :.: · ::: ::· ::::::::::::::::::::: :·.: : : . 280,450 276,6oo 635,000 . Total.......................................................... 1,938,585 6 ,THEMONTHLY REVIEW Crops Mild weather in February and March gave farmers over the Tenth District an earlier start than usual on their spring plowing and early planting. Seedings of oats and barley made excellent progress through the southern half of the District and by the middle of March was under full headway as far north as the Kansas-Nebraska line. Reports indicated early seeded oats were making good advance in Oklahoma, in southern parts of Kansas and Missouri, and were coming up to good stands in the central parts of the two states last named. Early potatoes were planted in southern parts under favorable conditions, and much of the potato acreage in the Kaw Valley of Kansas was planted by St. Patrick's Day. Plowing and discing for corn, cotton, sugar beets and other crops, to be planted in April and May, made satisfactory progress. Pastures greened up everywhere. Fruit trees were reported in bloom in southern parts and, save for possible injury by low temperatures, the prospects were regarded as favorable for fruit, except peaches, which were severlY injured by damage to trees during the extreme cold weather jn January. WINTER WHEAT: Reports on the condition of winter wheat in the extensive producing area of the Tenth District, at the middle of March, indicated the crop was making generally satisfactory advance, except that rain was needed over parts of this area where soil was becoming too dry. There were reports of soil blowing in parts of western Kansas and Oklahoma, and heavy damage by the Hession fly in parts of Missouri. The weekly report of the Kansas Weather Bureau, issued March 11, said: "Kansas wheat continues to make a satisfactory growth, except in a number of south-central counties where it is needing rain rather badly. Over the nothern half of the state wheat generally covers the ground, as seen from the roadside, and advanced fields in the southern half have also reached this stage. A soaking rain or heavy snow would benefit wheat in all parts.'' The March Nebraska report said: "So far, it appears that wheat came out of the winter with little if any acreage loss. Surface soil is dry and high winds have done a little injury in central and western portions recently. Subsoil has sufficient moisture and the crop is much further a]ong than usual for this date." Missouri wheat appeared to have emerged from the winter in perfect condition, but early March reports indicated there had been considerable damage by the Hession fly and a little damage by winter killing, with the result that a considerable part of the wheat acreage had been sown to oats. Grain Movements Under more favorable weather conditions for loading and shipping, grain moved to the five leading Tenth District markets in heavier volume during February than in January. Of the six classes of grain tabulated, the official reports for February showed gains over the preceding month for all classes except rye, the receipts of that cereal being the smallest for any February of record. Compared with the record for the corresponding month in 1929, this year's February receipts of wheat, rye and kafir showed decreases, while receipts of corn, oats and barley howed increases. FEBRUARY RECEIPTS OF GRAIN Hutchinson ............ Kansas City.......... Omaha... _............... St. Joseph.............. Wichita .................. Wheat Corn Bushels Bushels 2,614,950 536,250 4,263,110 4-,440,000 2,156,800 2,816,800 384,000 1,918,500 692,900 874,5oo Feb. 1930.. ............10,293,36o Jan. 1930................ 9,093,290 Feb. 1929..............14,689,430 2 Mos. 1930 .......... 19,386,650 2 Mos. 1929.......... 25,664,670 Oats Rye Barley Kafir Bushels Bushels Bushels Bushels 13,500 28,750 335,400 574,000 7,5 00 112,000 446,6oo 626,000 12.,600 68,800 28,000 78,000 7,500 48,000 1,300 52,000 45,500 10,404,450 1,339,500 21,400 289,550 835,000 10,200,050 920,000 65,900 232,900 577,300 8,798,300 909,000 62,200 160,650 1,047,500 20,604,500 2,259,500 87,300 522,450 1,412,300 19,656,000 1,963,000 148,100 387,500 2,652,100 A decline in wheat prices was the outstanding feature in the market situation in February. From the month's high range of $1.14 to 1.26 per bushel for cash No. I hard and dark wheat at Kansas City, paid on February 13, the price range dropped to 94 cents to $1.15 on the 25th. After that the decline was checked and the course of wheat reversed, the month closing with No.I dark and hard wheat selling at $1.06 to 1.15. Corn prices fluctuated narrowly during the month and the closing price for cash corn at Kansas City of 74c to 75c for No. 2 mixed corn was about 12c per bushel below the price paid one year earlier. The price of oats moved slightly downward with that of other grains and at the close was about i½c lower per bushel than one year earlier. Stocks of Grain on Farms Farm stocks of wheat on March 1 totaled 40,259,000 bushels for the seven states whose areas or parts form the Tenth District. This total compares with 53,294,000 bushels of wheat on farms on the corresponding date last year, indicating this year's stocks were 13,035,000 bushels or 22.4 percent below those of a year ago. Stocks of corn and oats were also smaller on March I this year than a year ago. STOCKS OF GRAIN ON FARMS ON MARCH 1 (In thousands of bushels, ooo omitted) WHEAT CORN OATS 1930 1929 1930 1929 1930 1929 Colorado .............. 3,o62 2,785 7,663 1,900 1,675 5,234 Kansas.................. 17,948 32,041 28,453 71,647 5,650 11,319 Missouri ...... ..... .. 2,595 2,111 72,616 44,283 15,286 9,456 13,285 99,852. 26,049 Nebraska·- -········· u,311 74,445 35,385 New Mexico ........ 246 1,463 290 1,045 58 574 Oklahoma............ 4,oo3 11 ,597 5,362 21,045 3,089 5,091 Wyoming.. .......... 1,052 . 538 766 615 1,430 1,187 Seven States........ 40,259 United States ...... 129,153 53,294 151,396 197,437 989,469 246,647 57,206 1,021,873 399,222 60,665 4-97,335 Stocks of wheat in elevators at Kansas City, Omaha, St. Joseph and Wichita on March 1, 193c', totaled 40,530,000 bushels. This was an increase of 7,669,000 bushels over stocks reported for the four cities for March 1, 1929. Livestock Livestock in all parts of the Tenth District made gains during February and their condition on March 1 was higher than either a month ago or a year ago, according to reports from offices of the United States Bureau of Crop and Livestock Estimates located in the several states. Feeding requirements, which were necessarily very heavy during the severe winter weather in January, were greatly reduced in Februray by the mild weather which caused the grass on pastures to green up and helped to conserve the hay and feed supply. Reports from over the range country in Colorado, New Mexico and Wyoming showed the condition of cattle improved during 7 THE MONTHLY REVIEW FEBRUARY MOVEMENT OF LIVESTOCK IN THE TENTH DISTRICT RECEIPTS Cattle Kansas City........................................ I 27,956 Omaha·-··············································· 107,967 St. Joseph............................................ 31,400° Denver...... .. .................. .................... .. 19,771 Oklahoma City.... .. ............................ 19,883 Wichita................................................ 20,151 STOCKERS AND FEEDERS Calves Hogs 18,789 * 327,955 6,794 407,494 6,192 131,196 4,095 69,891 7, 5 0 1 5,844 February, 1930 .................................. 327,128 48,765 January, 1930 .................................... 407,326 53,142 February, 1929 .................................. 274,036 J 4,7II Two Months, 1930 ............................ 734,454 101,907 Two Months, 1929 ............................ 668,869 89,404 *Includes 116,805 hogs direct to packer's ya:-ds. 35,007 5o,5o5 Sheep 164,879 250,939 157,722 134,952 3,800 11,259 1,022,048 723,55 1 1, 159,5°5 627,359 1,063,838 660,1 73 2,1 81,553 1,350,910 2,288,600 1,336, 137 February and on M arch 1 averaged about 3 points higher than a year ago, indicating that the cattle industry over the greater part of the range territory was back to normal after the severe storms in the early part of the year. Cattlemen were generally supplied with hay for the spring months. There was little demand for breeding stock and restocking of ranges was somewhat limited. Sheep wintered well throughout the range country with but little shrinkage and small losses. Under the favorable conditions prevailing during F ebruary lambs on feed made better gains than eariler in the season, and the condition on March I was several points higher than a month ago or a year ago. No wool had been reported as contracted throughout the extensive sheep region of this District. In some sections, however, it was reported many sheepmen were signing up to handle their wool thourgh the ational Wool Corporation. LIVESTOCK 1OVE fE1 TS: February reports from public stock yards at the six principal markets in the Tenth District reflected seasonal decreases from January in receipts of cattle and calves, although the February totals showed increases of 19.4 percent and 40. 5 percent, respectively, over receipts for the same month last year. Receipts of sheep during the month were in larger numbers than in either the preceding month or the corresponding month last year, and the largest total receipts for F ebruary on records covering the past twelve years. Receipts of hogs at public stock yards, including those received direct at packers' yards, were in smaller numbers than in either January of this year or February of last year, and the smallest February total si nce 1927. Cattle 42,51 I 24,513 5,006 6,444 78,474 106,674 51,453 185,148 136,286 Calves Hogs 4,373 14,2 91 2,926 2,464 675 1,085 2,561 1,090 Sheep I 5,548 19,361 19,143 7,176 18,930 8,051 16,794 26,981 31,250 61,228 67,661 74,114 128,889 203,172. Jo,535 11,342 4,421 21,877 15,854 PURCHASED FoR SLAUGHTER. Cattle Calves Hogs Sheep 51,967 13,352 * 208,767 132,018 64,476 3,868 256,528 166,275 20,o66 5,353 94,076 I 14,610 7,538 2,095 65,082 18,010 12,808 5,930 29,739 3,173 5,987 2,081 47,103 10,751 162,842 200,320 159,640 363,162 381,840 32,679 31,567 28,261 64,246 68,657 701,295 86o,108 841,042 1,561,403 1,818,76o 444,837 4 17,79 2 375,384 862,629 765,5 2 5 Receipts of 21,570 horses and mules during February were 1,207 above the total for January and 4,978 above the total for February 1929. Movements of stock and feeding cattle and calves from four yards to the country during February were in smaller numbers than in the preceding month, although they exceeded the countryward shipment in February oflast year by 52. 5 percent and 138.3 percent, respectively. Fewer sheep were shipped to the country during February than in either the preceding month or the same month last year. Meat Packing With relatively small market supplies of hogs from which to make their purchases, packers at the six principal centers in this District sluaghtered fewer hogs in February than in either the preceding month or in the same month last year. In fact the returns show the month's pork packing was the smallest for February since 1927. On the other hand the number of sheep and lambs killed and dressed during the month was 6.5 percent greater than in January, 18.5 percent greater than in February a year ago, and the greatest in number for the second month of a year on records covering the past twelve years. In the beef packing departments of the packing establishments the slaughter of cattle during the short month of February was 18.7 percent below that for January, but 2 percent above that for February a year ago. The February slaughter of calves, however, was larger than that for the preceding month or that for the same month last year. Business Conditions in the United States By the Federal Reserve Board Industrial production increased in February, while the number of workers employed in factories was about the same as in January. Wholesale commodity prices continued to decline. Credit extended by member banks was further reduced in February but increased in the first two weeks of 1arch. Money r:ttes continued to decline. PRODUCTIO : In February industrial production increased about 2 percent, according to the Board's index which is adjusted to allow for seasonal variations. This increase reflected chiefly a substantial gain in the output of iron and steel. Automobile production was in larger volume than during Janu ary, but was 30 percent smaller than the large output of a year ago. Cotton and wool consumption by mills was substantially lower in February, and production of bituminous coal and copper also decreased. In the first two weeks of March the output of steel mills declined in comparison with February, contrary to the usual seasonal movement. Bituminous coal output also was smaller. The volume of building contracts awarded in February was about the same as in the preceding month. Residential building continued at an exceptionally low level, while contracts for public works and utilities were large in comparison with the corresponding month in other recent years. Awards in the first two weeks of March were larger than in the first half of February. EMPLOYMENT: The volume of factory employment, which had reached a low point in January, showed little change in February, when an increase usually occurs. Factory payrolls increased during the month, but by a smaller amount than is usual at this season. In the steel, automobile, agricultural implement and tobacco industries employment increased during the four week period, while further decreases occurred in the cotton and wool textile, lumber, automobile tire, electrical machinery, and machine tool industries. 8 THE MONTHLY REVIEW DISTRIBUTION: Freight car loadings on an average daily basis were slightly larger than in January but smaller than in the corresponding month of any other recent year. Slight seasonal increase was reportecl during early March. Department :,tore sales in February continued to be below the level of a year ago. PRICES: Wholesale prices of commodities declined further during February, and the bureau of labor statistics index at 92.1 percent of the 1926 average was at the lowest point since Jl!IICtNT 1lt0 PEI.ClNT 140 INDUSTRIAL PRODUCTION and investments of member banks in leading cities were in about the same volume as in the early summer of last year. During the following two weeks, however, there was an increase of $230,000,000 in loans and investments, chiefly in loans on securities. All other loans, largely for commercial purposes, increased slightly. From the middle of February to the middle of March the volume of reserve bank credit outstanding decreased further by $90,000,000. This decline reflected chiefly an increase in gold stock of $75,000,000 and a further decline of money in circulation, MILLIONS OF DOU.ARS 2000 MllLIOM3 o, DOLLARS 2000 RESERVE BANK CREDIT 801----+----+----+----~-----180 60........,______...L.-----L------JL......----4---, 60 1926 1927 1929 1928 1930 Index of production of manufacturers and minerals combined, adjusted for seasonal variations (1923-1925 average 100). Latest figure, February, 105. January 1922. 1arked declines occurred during the month in the prices of many agricultural products, grains, hides, raw wool and cotton; in certain imported raw materials, notably sugar and silk; and also in textiles, petroleum and pig iron. During the first part of March a number of these commodities declined still further in price. Wheat and cotton prices were considerably lower, and silver reached the lowest point on record. By the middle of the month, however, prices of cotton, hides and silver had recovered somewhat. BANK CREDIT: LiqU:idation of credit of member banks continued throughout February, and on February 26 total loans Monthly averages of daily figures for 12 Federal Reserve Banks. Latest figures are averages of first I 8 days of March. offset in part by some increase in member bank reserve balances. Member bank indebtedness at the reserve banks declined to $267,000,000, the lowest level since early in 1925. Reserve bank holdings of bills declined, while those of United States securities increased. Money rates in the open market eased further and bond yields declined rapidly to the lowest level since 1928. At the middle of March the discount rate at the Federal Rserve Bank of New York was reduced from 4 to J¾ percent, and the rate at the Cleveland, Philadelphia and San Francisco Banks from 4_½' to 4 percent. BILLIONS OF DOLLARS PERCENT PER CENT 120 BILLIONS OF DOLLARS 10 10 9 9 8 8 7 7 6 6 120 I WHOLESALE PRICES 1101------1------+------+--- --1f-----1110 eo_,______._____._______.________________,ao 1926 1927 1928 1929 5 1926 1927 5 1928 1929 1930 1930 Index of United States Bureau of Labor statistics (19~6 equal 100, base adopted by Bureau). Latest figure, . February, 92. I. Monthly averages of weekly figures for reporting member banks in leading cities. Latest figures are averages of first twc weeks in March.
@FedFRASER