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THE MONTHLY REVIEW Of Agricultural, Industrial, Trade and Financial Conditions in the Tenth Federal Reserve District FEDERAL Vol. 18 RESERVE BANK KANSAS CITY, Mo:, USINESS and Tenth District commodity prices continued to mark time in February with sentiment improving and prices strengthening somewhat the middle of March, following the banking holiday. The outstanding favorable improvement during February was a decided reduction in business mortality. The February volume of retail trade as reflected in the dollar sales of thirty-two department stores in leading cities of the District increased 0.9 percent as compared to January, but was 23.2 percent less than in February, 1932. Combined sales of all reporting wholesale firms declined 7.7 percent for the month and 17.1 percent as compared to February last year. Life insurance sales were slightly smaller than in January and 16.5 percent less than a year ago. Retail lumber sales were less than a month ago but larger than in February, 1932. Building operations were the lightest for any month in recent years. Daily average production of crude oil was slightly larger than one month or one year earlier, but gross production was, due to the shorter month, slightly smaller. Output of bituminous coal increased and production of cement declined for the month, with the former showing a slight decrease and the latter a 4.8 percent increase as compared to February, 1932. Flour mills were less active than one month or one year earlier. Marketings of all classes of grain and all species of livestock were comparatively light. Operations at meat packing establishments reflected the light receipts of meat animals at public markets. Prices of beef, poultry, eggs, oats, barley, flour, hay, cotton, zinc ore, lead ore, and crude oil closed the month nominally unchanged. Wheat, mill feed, pork, and butterfat prices B were somewhat higher and corn, rye, kafir, and mutton were slightly lower. The Department of Agriculture's index of farm prices declined 2 points between January 15 and February 15 to establish a new low of 49 percent of the 1909-1914 average on the latter date. Prices paid by farmers for commodities purchased declined 1 point to 104 percent of pre-war and the ratio of prices paid to prices received declined 2 points to 47 percent of pre-war, also a new low. Member Bank Operations The nation-wide banking holiday, invoked by Presidential proclamation and extending from March 5 to March 13 for banks in the twelve FederaUreserve bank cities, to March 14 for banks in clearing house cities, and to March 15 for other banks, curtailed or postponed a substantial portion of business transactions in which payment through transfers of bank credit was a necessary factor. Essential transactions for the OF APRIL 1, KANSAS CITY 1933 No. 4 BUSINESS IN THE TENTH FEDERAL RESERVE DISTRICT Percentages of Increase, or Decrease (-), for February 1933 1933 and February 1932 and for the first two months of 1933 period in 1932. February 1933 Compared to Banking Jan. 1933 Feb. 1932 Payments by check, 29 cities-----·--··-·-·-··· -10.9 -21.0 Federal Reserve Bank clearings-----··--··-·· - 9.9 -12.5 Business failures, number ___ . _ _ _ _ -10.5 -'19.7 Business failures, liabilities------····--··---·-··· -15. 5 -47.3 Savings deposits, 46 selected banks---·-·· - 2.5 - 7.4 Savings accounts, 46 selected banks _____ . - o.8 - 4.5 Distribution Wholesalers' sales, 5 lines combined .... _ - 7.7 -17.1 Retailers' sales, 32 department stores.._. 0.9 --23.2 9.1 Lumber sales, I 58 retail yards---··--··-··-··· - 5.2 Life insurance, writte,..______ - 3.0 -16.5 Construction Building contracts awarded, value____··· -56.8 Residential contracts awarded, value.... ----67.5 Building permits in 18 cities, value_·--···· - 4.7 Production Flour_ _ _ _ _ _ _ __ -12.3 -4.3 Crude petroleu .. ,___ _ _ _ _ __ - 2.1 - 2.2 Softcoa...__ _ _ _ _ _ _ _ __ - 1.2 8.9 Zinc ore (shipped) Tristate District---··· -37.8 22.9 Lead ore (shipped) Tristate District-···- 1 9.5 4.8 Cement. __ ···-·-···-•--··-·-•---·-···---··- - - - Grain receipts, 5 markets 46.6 Wheat·--·-········--·---·-·· · · - - - - - - -15-7 Corn_. _ _ _ _ _ __ -15.2 30.4 Oat _ _ __ -56.8 -45.7 76.3 Ry~----------Barley_ _ _ _ _ _ _ __ -'15.2 Kafir _ _ __ -41.5 Livestock receipts, 6 markets -16.1 Cattle ......·--··--···-----Calves _ _ _ _ _ _ __ -'26.1 -25.7 Hogs .......·-···--··--·----···--Sheep ........ _ _ _ _ _ _ _ _ __ 22.3 Horses and mules.. _ _ __ -13.8 Meat packing, 6 markets -12.2 Cattle-----·---·---··---·------··-···-··-···-····--·-----·-·--·· -14.0 - 1 9.3 Calves-----··-·--------··--··-··-·······--·--··---·---·--······ -13.6 Hogs .. _ _ _ _ _ _ _ _ __ -27.2 - 2 9.4 -26.4 7.8 Sheep ......._..... ,••·-················-······•-·-············· Stocker and feeder shipments, 4 markets 25.8 Cattle.......................·-·-·--·-··----·---- -17.8 132.1 Calves ___ ·-···-------··-·-----·--····----·---··--·-·-·····-··· -3 1 .3 6.o 2.9 Hogs.·-·····--··---·-----·-·---··--··--·-------------------····Sheep .. _._ ...... _... __ .._. ____. ________ ._____ .. _._. ___________ _ -l4.5 -3.9 over January over the like 2 Mos. 1933 Compared to 2 Mos. 1932 -18.5 - 13.3 --28.5 -60.7 -13.2 -21.5 5.0 -17.2 - o.8 - 5.6 -12.0 103.1 -45.7 -48.0 ----67.4 59· 2 -l9.7 102.7 -44.1 -6o.2 - 6.1 25.1 --20.9 --22.6 12.8 - 9.1 - 8.3 -15.2 -31.2 22.9 1o6.9 6.o - 4.5 movement of foodstuffs, perishables, etc., were handled through the banks where credits between buyers and sellers could not be arranged, and, while the restrictions on banking operations made it impossible for these classes of transactions to be handled in normal volume, there appear to have been no food shortages Thl1 Copy Relea1ed For Publication In Afternoon Newspapers, March 28. 2 THE -MoNTHLY ' REVIEW and no great amount of losses due to delays in financing. With the reopening of the banks on March 13, 14, and 15, normal business operations were resumed without confusion. The withdrawals of cash and the shifting of deposit balances, which immediately preceded the holiday, so changed the condition figures of banks as of dates on or about the holiday period as to nullify the value of comparisons of those figures with condition reports for other dates. For this reason the usual comparative table prepared from weekly condition reports of selected banks in the District is omitted from this issue of the Review. Unofficial reports received from all sections of the District indicate that the reopening of the banks was accompanied by a restored cohfidence on the part of bank customers, evidenced by a redepositing of currency previously withdrawn and a retransferring of deposit balances back into normal channels. In this connection, the Tenth District has made a splendid response to the request of the Government that gold and gold certificates be returned to the banks and, through them, to the Federal Reserve Bank. Federal Reserve Bank Operations All of the principal items contained in the weekly condition statement of the Federal Reserve Bank of Kansas City and branches at Denver, Oklahoma City, and Omaha as of March 15, showed substantial increases, bills rediscounted for member banks excepted, both as compared to February 15 this year and March 16 last year. Holdings of bills rediscounted for member banks, which more than doubled between February 15 and March 15, were 8 percent smaller on the latter date than on March 16, 1932. The bank's holdings of bills purchased increased $8,037,242 in four weeks and on March 15 were $3,944,484 larger than one year earlier. United States Government securities increased $5,550,000 during the four weeks' period, and total holdings of bills and securities as of March 15 were $100,951,481, which was $39,942,321 above the March 16, 1932, total. Gold reserves were enlarged 27.6 percent in four weeks and 53.2 percent in fiftytwo weeks. Under the banking emergency, Federal reserve note circulation expanded $48,767,240 in four weeks, with the total circulation of March 15 being $66,562.,120 in excess of that of March 16, 1932. Member banks increased their reserve deposits $8,428,292 in four weeks and $16,274,424 in fifty-two weeks. Changes in the principal resource and liability items of this bank and branches in four and fifty-two weeks are indicated in the following: Mar. I 5, 1933 Feb. I 5, 1933 Mar. 16, 1932 Gold reserve.~ - -- ·-········-···· $140,581,986 $no,187,008 f 91,759,584 Reserves other than gold.---········· 3,299,262 6,252,020 6,543,193 Total reserves.................................. 143,881,248 l 16,439,028 98,302,777 Bills discounted.- -······•···················· 30,852,109 l 5,o6o,501 33,523,772 Bills purchased .. _ _ _ _ _ 8,879,272 842,030 4,934,788 U. S. securities .. ·-·-- ·-······················ 61,220,100 55,670,100 22,550,6oo Total bills and securities................ 100,951,481 71,572,631 61,009,16o Total resources................................ 273,213,395 214,166,029 189,513,386 F. R. notes in circulation.............. 149,699,955 100,932,715 83,137,835 Member banks' reserve deposits... 87,937,480 79,509,188 71,663,056 The discount rate of the Federal Reserve Bank of Kansas City, on all classes of paper and all maturities, remained unchanged at 3½ percent. Reserve Bank Check Collections Check collections for banks through this bank and branches during February totaled but 3,328,098 items, representing $443,410,000. These totals represent decreases of 10.2 percent in the number of items handled and 9.9 percent in the dollar amount as compared to January, and 23.9 and 12.5 percent, respectively, as compared to February last year. February check collections, with comparisons, follow: ITEMS February.........J anuary ·····-····-· Two months ..... 1933 3,328,098 3,708,108 7,036,206 AMOUNTS 1932 4,37 2, 154 4,535,143 8,9°7,2 97 1933 $443,410,000 492,21I ,000 935,621,000 1932 .,, 506,516,000 572,052,000 1,078,568,000 Bank Debits Banks in twenty-nine leading cities of the District reported amounts debited to individual accounts in the four weeks ended March 1 declined 10.9 percent as compared to the preceding four weeks ended February 1 and 21 percent as compared to the like period last year. During the first nine weeks of the new year payments by check declined 18.5 percent as compared to a year ago. PAYMENTS BY CHECK FOUR WEEKS ENDED Albuquerque, N. M _ _ __ Atchison, Kans.·----··················· Bartlesville, Okla ..__ _ _ __ Casper, Wyo.·--- ························· Cheyenne, Wyo........................... Colorado Springs, Colo .._........... Denver, Colo............................... Enid, Okla .................................. . Fremont, Nebr.·-························· Grand Junction, Colo ................. Guthrie, Okla.._........................... Hutchinson, Kans ....................... Independence, K'ans ................... Joplin, Mo ....-............................. Kansas City, Kans ...................._ Kansas City, Mo.·- ····················· Lawrence, Kans ........................... Lincoln, Nebr..-........................... Muskogee, Oki _ __ _ _ _ Oklahoma City, Okla ................ . Okmulgee, Okla. _ _ _ Omaha, Nebr............................... Pittsburg, Kans........................... Pueblo, Colo _ _ __ _ Salina, Kans ..- ............................. St. Joseph, Mo _ _ __ _ _ Topeka, Kans.·--························· Mar. 1, 1933 $ 6,009,000 2,135,000 14,307,000 2,960,000 3,743,000 8,082,000 83,163,000 4,426,000 1,364,000 1,226,000 863,000 cities, 4 weeks .. ·-········ cities, 9 _w eeks_···-······ cities, 4 weeks-··--·····cities, 9 weeks .... -....... $ 5,952,000 Percent Change -17.2 --24.5 9.6 -17.2 -4.6 -18.8 - 1 3.3 -33-4 -35.3 -23.8 --25.2 -50.2 -55.o 7,595, 000 106,537,000 3,299,000 10,390,000 4,289,000 17,340,000 u,516,000 23,815,000 13,338,000 8.5 --23.1 -23.2 -20.5 -26.7 -18.9 -17.0 -16.5 -21.3 -13.9 -26.9 -78.6 -27.2 -13.7 56,075,000 69,237,000 -19.0 24,291,000 34,296,000 --29.2 607,612,000 1,505,616,000 24,274,912,000 56,504,931,000 f, 7,259,000 2,826,000 13,049,000 3,577,000 3,9 25,000 9,958,000 95,911,000 6,643,000 2,107,000 1,609,000 1,154,000 II,952,000 6,002,000 5,708,000 10,530,000 231,679,000 3,194,000 20,962,000 2,701,000 6,193,000 8,096,000 177,835,000 2,540,000 I 5,362,000 4,626,000 46,514,000 1,700,000 83,868,000 2,841,000 Tulsa, Oki...__ _ __ Wichita, Kans ............................. Total 29 Total 29 U.S. 263 U. S. 263 Mar. 2, 1932 5,705,000 56,015,000 2,035,000 6,526,000 f, 769,238,000 -21.0 I ,846,396,000 -18.5 -13.1 -19.6 27,93 2, 57o,ooo 70,318,384,000 Commercial Failures There was a distinct improvement in national and Tenth District business mortality, both as to the amount of liabilities involved and number, in February compared to January and in February and the first two months of the new year as compared to February and the first two months of 1932. Dun and Bradstreet, Inc., reported 102 failures in the District in February classified as follows: manufacturing, II; trading, 82; other commercial, 9. This was the smallest number of February defaults reported since 1926 and the total was 12 percent below the ten-year average. The amount of liabilities involved was also below the average, l 5. 5 percent less than in January, and 47.3 percent short of the February, 1932, total. Failures in the United States were less numerous than either of the two preceding years, but liabilities were, with the exception of last year, the heaviest for any February since 1922 and 38.7 percent in excess of normal. THE MONTHLY REVIEW 3 RETAIL TRADE AT 32 DEPARTMENT STORES~IN THE TENTH FEDERAL RESERVE DISTRICT SALES SrocKs (RETAIL) AccouNTS RECEIVABLE Stores Feb. 1933 2 Mos. 1933 Feb. 28, 1933 STOCK Tu .. Novn1 Feb. 28, 1933 Report- Compared to Compared to Compared to February 1 Months Compared to ing Feb. 1932 2 Mos. 1932 Jan.31,1933 Feb.29,1932 1933 1932 :1933 !.1932 Jan.31,1933 Feb.29,1932 Kansas City........ 4 ~-9 -23.0 2.4 -19.1 .14 .16 .29 .31 -14.6 -16.0 Denver.................. 4 -26.1 -22.1 4•3 -21.3 .20 .21 -40 .41 -15.7 -18.8 Oklahoma City.... 3 -z6.7 -24.3 14.I -36.6 .27 .23 .52 -44 -IO.! -17.8 Tulsa.. _................ 3 -17.3 -14.0 15.8 -19.0 .39 .39 .72 .67 - 8.9 -18.8 Wichita................ 3 -26.8 -23.6 -15.8 -39.5 .19 .18 ·35 .34 -13.0 -32.3 Other cities .......... I 5 -18.1 -Z0.I 22.5 -19.5 .22 .22 .43 .44 - 8.2 -18.2 TotaL_................. 32 -23.2 -21.5 6.3 -22.6 .19 .20 .38 NOTE: Percentage of collections in February on accounts January 31, all stores reporting 32.1. Commercial failures in the Tenth District and the United States as reported by Dun and Bradstreet, Inc.: February 193_,....._ _ __ January 1933·-····················· February 1932·-··················· Two months 1933................ Two months 1932.-............. TENTH DISTRICT Number Liabilities 102 $1,556,459 114 1,842,215 145 1,951,678 216 3,398,674 301 8,643,278 UNITED STATES Number Liabilities 2,378 i 65,576,068 2,919 79,100,602 2,732 84,900,106 2 5, 97 l44,676,670 6,190 181,760,3II Savings Savings deposits, as reported by forty-six selected banks in leading cities of the District, declined 2.5 percent in February with the total as of March 1 this year 7.4 percent below that of March 1, 1932. Less than 1 percent of the depositors closed their accounts during the month, and the number of savings accounts reported by these banks on March 1 was only 4.5 percent less than the number reported one year earlier. Savings accounts and savings deposits as reported by the forty-six banks as of the three dates of comparison: March 1, 1933..................... _ _ _ _ February 1, 1933·-··-······························· March 1, 1932............. Savings Accounts 374,723 377,806 392,573 Savings Deposits $105,472,951 108,141,026 113,953,o39 Life Insurance Sales of new paid-for ordinary life insurance in the seven states of this District totaled $34,173,000 in February, 1,35,237,000 in January, and $40,938,000 in February, 1932. In the states of New Mexico, Oklahoma, and Wyoming the February volume exceeded that for January. All seven states reported decreases as compared to a year ago. Life insurance sales in the United States and the seven states of the District as reported by the Life Insurance Sales Research Bureau: Colorado. __ ................................... Kansas ........................................ Missouri ............ _ _ _ __ Nebraska ................... _ _ __ New Mexico·--···········---Oklahoma.--.································ Wyoming .................... _ __ Seven states·-······························· United States·-··-······--·------·-········ Reporting Stores Dry goods ...................... 6 Groceries __ .................... 5 Hardwar 7 Furniture 5 6 Drup February 1933 $ 3,565,ooo 4,470,000 16,226,000 4,003,000 580,000 4,845,000 484,000 January 1933 3,684,000 4,59 1,000 16,889,000 4,394,ooo 510,000 4,757,000 412,000 February 1932 $ 4,957,000 5,854,000 18,o62,ooo 4,707,000 679,000 5,999,ooo 680,000 t, 34, 173,000 1, 35, 237,000 $ 40,938,000 473,994,ooo 481,073,000 592,718,000 i COLLECTIONS Feb. 1933 Compared to Jan. 1933 .;iFeb. 1932 - 7.3 -25-4 -26.7J -19.3 6.o -17.4 -22.5 -26.2 -33.5 -28.1 --23.3 -23.5 •39 -II.9 -17.7 -19.1 Collections same month last year 33.6. -21.3 Trade RETAIL: Making no allowance for one less trading day this year than last, dollar sales of merchandise at thirty-two reporting department stores in the District declined 23.2 percent in February as compared to the like month last year. Sales, as usual, approximated the January volume, showing an increase of 0.9 percent. Cumulative sales for the first two months of the new year ran 21. 5 percent behind the sales reported for the first two months of 1932. The seasonal increase in inventories during the month was somewhat less than usual, with stocks on hand February 28 but 6.3 percent larger than four weeks earlier, whereas, the normal increase is about 12 percent. For the fifth successive year inventories have been reduced, with the reduction between February 29, 1932, and February 28, 1933, of 22.6 percent being the heaviest, resulting in the District index, as of the latter date, standing at 63.2 percent of the 1925 average. Collections on thirty day accounts during February amounted to 32.1 percent of the amounts outstanding at the close of January as against 33.6 percent last year. The January ratio of collections to receivables was 34.6 percent. WHOLESALE: Normally Tenth District wholesalers' sales of dry goods, hardware. and furniture increase, whereas, those of groceries and drugs decline during February. This year sales of dry goods declined 9.2 percent as compared to an increase of 6.4 percent last year, sales of hardware and furniture showed less than the normal increase, and sales of groceries and drugs more than the normal decrease. All five lines reported their February dollar volume of sales as somewhat smaller than a year ago. Sales of dry goods declined 27.5; groceries 6.7; hardware 17.1; furniture 21.5; and drugs 18.3 percent. Wholesalers' stocks, with the exception of slight decreases reported for dry goods and drugs, increased seasonally during February although the increase was not as large as usual. Inventories as of February 28 this year compared to February 29, 1932, showed the following reductions: dry goods 6.7; groceries 20.8; hardware 14; furniture 22.4; and drugs 16.7 percent. Stocks of dry goods and groceries have registered five, hardware and drugs four, and furniture three consecutive declines on an annual basis of comparison. Collections, groceries excluded, were somewhat slower m February than in January or in February last year. WHOLESALE TRADE IN THE TENTH FEDERAL RESERVE DISTRICT SALES OuTSTANDlNGS COLLECTIONS Feb. 28, 1933 compared to Feb. 1933 compared to Feb. 1933 compared to Feb. 1932 Feb. 193:2 Jan.31,1933 Feb.29,1932 Jan. 1933 Jan. 1933 -o.6 -19.2 -13.8 -21.9 - 9.:2 -27.5 - 6.8 - I.0 -6.7 -9.0 8.4 4·5 -11.6 1.8 -17.1 - 6.o 2.4 -19.1 -18.1 II.8 --21.5 -3r.5 -3 2.5 4.4 -II.I -14.I -18.3 -8-4 -1:2.3 - 3.1 STOCKS Feb. 28, 1933 compared to Feb.:29,1932 J an.31,1933 I.I - 6.7 8.o -20.8 2.I -14.0 -22.4 2.9 - 1.:2 -16.7 THE MONTHLY REVIEW 4 Flour Milling . Flour: m~lls ~n: this District operated at 6o.3 percent of fulltime capacit~ i_n February, the same as a year ago, but owing to one less millmg day, the output declined 4.3 percent as compared to February, 1932. Total production was 12.3 percent less than reported....for January, when mills operated at 63.4 percent of capa~ity and, excluding June, 1931, was the smallest for any month since May, 1926. ·Production of flour at the principal milling centers of the District and the United States as estimated from the weekly reports of mills to the Northwestern Miller: closed 1½ cents per bushel higher for the month, but corn, rye, and kafir were correspondingly lower. Barley was unchanged and oats advanced a ½ cent. Closing quotations were as follows: No. I hard and dark wheat, 43,½; No. 2 mixed corn, 20; No. 2 white oats, 17,½; No. 2 rye, 32; No. 2 kafir, 42; and No. 2 barley, 23,½ cents per bushel. A year ago wheat closed at 52½; corn, 33½; oats, 25; rye, 44; barley, 37; and kafir, 56 cents. Agriculture CROPS: Plowing and seeding operations, which were retarded by the unfavorable weather conditions of the second Feb. 1933 Feb. 1932 Jan. 1933 and third weeks of February, were resumed late in the month Barrels Barrels Barrels Atchiso 1 and a large percentage of the oats acreage and some clover were 129,200 108,176 1 3,579 Kansas City 491,827 580,287 57 2,385 seeded by the third week of March. Soil moisture on the whole Omaha .... 87,282 56, 299 9 2,4 15 is deficient although the eastern third of the Di~trict received Salina.. · nS,788 131,848 131,165 from one to two inches of moisture the second week of M arch. Wichit 174,4°9 219,440 202,637 Outsid Potato planting commenced in the Kaw Valley the middle 807,526 733,465 726,333 of March with the intended acreage reduced somewhat. Many Total southwestern mills·-········· 1,719,350 1,960,716 1,796,995 · producers have their own seed this year and will not have a United State...______ 4,792,656 5,253,819 5,019,985 cash outlay for seed potatoes. Colorado reports the certifiMany bakers and distributors having booked their requirecation of I 22,530 bushels of disease-free seed potatoes of the ments for the present crop season, February sales were largely best quality. of a hand-to-mouth character, covering small lots for immeFruit prospects, with the exception of peaches and apricots diate requirements. Inquiries regarding new crop flour were which were injured by the extreme temperatures, are good. ' frequent with mills reluctant to make quotations. During The western part of the wheat belt, containing about 60 the bank holiday little business was accepted by the mills percent of the total wheat acreage, continues to suffer from a and then only with reservations. Export business was conlack of moisture with wheat showing further deterioration and fined to a few sales to the Latin Americas. Flour prices were promising an unusually heavy abandonment. Wheat in the steady throughout February but advanced 10 cents per barrel eastern section has greened up well in recent weeks. United as grain prices strengthened the forepart of March. States fall sown acreage of winter wheat was estimated on Mill feed prices are sharply higher as a result of the wideDecember : at 39,902,000 acres compared with 40,420,000 sp:ead cold weather the forepart of February, higher grain acres sown m the fall of 1931, and the condition placed at 68.9 prices the forepart of March, and a more active demand for percent, or the lowest for that date in the seventy years of the limited offerings. record. T!ie world's available supply on January I was placed by the Umted States Department of Agriculture at 6oo million Grain Marketing bushels, compared with 638 million a year ago and 588 million Low prices and bad weather restricted the marketing of all two years ago. Exports of wheat and flour from the United classes of grains in February. Receipts of wheat, oats, barley, States from July I last year to March 1, 1933, totaled 19,750,000 and kafir at the five principal markets of the District were the bushels compared to 68,000,000 bushels in the corresponding lightest for that month in the thirteen years of record as period of the preceding season. excluding February last year, was also true of corn. Ma;ket~ 1933 PLANTING INTENTIONS: Estimates of the proings of rye although heavier than in the three preceding years bable ~creage of thirteen farm crops to be harvested in 1933, were comparatively light. Compared to the ten-year average February volume, marketings of wheat declined 51, corn 70, as derived from the reports of- approximately 41,000 farmers on their planting intentions, and allowing for average diffioats 63, rye 36, barley 71, and kafir 84 percent. A poor new winter wheat crop outlook and a favorable culties at planting time, average loss of acreage and adverse livestock-feed ratio were inducements for producers to hold weather conditions, and a normal departure from expressed seeding intentions, indicate a general reduction of about 3 or feed their grains when financially able to do so. percent in the total acreage of crops this year as compared to Receipts of six classes of grain at the five principal Tenth las!· A smaller acreage of corn, spring wheat, oats, barley, District markets: white potatoes, sweet potatoes, dry beans, flaxseed, and cowWheat Corn Oats Rye Barley Kafir Bushels Bushels Bushels Bushels Bushels Bushels peas, and a larger acreage of grain sorghums, tame hay, soy Hutchinson ...... 1,250 15,600 996,300 beans, and tobacco are forecast for the nation. Most changes 18,000 12,800 Kansas City·--· 3,179,200 78,400 754,5 00 228,000 will be minor, with extreme shifts ranging from a 13 percent Omaha.............. 368,000 84,000 758,800 19,200 33,600 reduction in the acreage of sweet potatoes to a 22 percent 236,800 646,000 230,000 St. JosepL---· increase in the acreage of tobacco. 22,100 546,000 1,300 1,300 1,300 Wichita·--········· --- --- --- --Of the crops produced in the seven states, whose areas or February 1933 .. 5,326,300 2,182,650 542,000 52,900 33,300 95,3 00 parts thereof comprise this District, the only reductions noted January 1933._ 6,317,550 2,574, 15° 997,500 30,000 44,5 00 162,900 are as follows: corn 2.1; oats 1.4; white potatoes 6.8; and February 1932.. 22,775,150 1,673,300 1,256,000 23,600 49, 25° 388,600 flaxseed 3.6 percent. The spring wheat acreage will be 26.7 82,900 77,800 258,200 2 Mos. 1933·-··· n,643,850 4,756,Soo 1,539,500 2 Mos. 1932...... 35,751,550 2,987,300 1,916,500 40,900 139,100 648,000 and that of tobacco 14.3 percent greater. Prices of all grains registered only fractional changes during Acreages of crops indicated for harvest in I 933, as estimated February. Number I hard and dark wheat at Kansas City by the United States Department of Agriculture from the . 0 THE MONTHLY REVIEW reports of farmers' March I planting intentions, are herewith compared to the acres harvested in 1932.: SEVEN STATES Indicated Harvested Pct.of Corn ................ Spring wheat.. Oat.__ _ _ Barley·--·······Gr. sorghums.. Tame hay·---· Wht. potatoes Swt. potatoes.. Dry beans...... Flaxseed.·--···· Soy beans·--··· Cowpeas ........ Tobacco.......... UNITED STATES Indicated Harvested Pct.of 1933 _ 1932 1932 1933 1932 29,220,000 29,835,000 97.9 103,934,000 107,729,000 725,000 572,000 126.7 . 20,986,000 21,521,000 7,443,000 7,546,000 98.6 ..:.J.40,003,000 41,224,000 2,367,000 2,358,000 100.4 ~· 12,971,000 13,213,000 3,828,000 3,636,000 105.3 . ·\ 8,033,000 7,850,000 8,381,000 8,010,000 104.6 53,389,000 52,819,000 384,000 412,000 f93.2 3,185,000 3,368,000 38,000 38,000 100.0 806,000 926,000 423,000 380,000 I I 1.3 I ,343,000 1,348,000 54,000 56,000 96.4 , 1,819,ooo j 2,087,000 520,000 477,000 109.0 3,152,000 2,895,000 174,000 159,000 109.4 1,972,000 2,019,000 8,000 7,000 II4.3 1,747,000 1,433,000 1932 96.5 97.5 97.0 98.2 102.3 101.1 94.6 87.0 99.6 87.2 108.9 97.7 121.9 FARM LAND: There has been a marked increase in the demand for rental land, largely attributed to urban unemployment and the reoccupancy by retired farmers of their own farms which they sold and which are being surrendered or reclaimed. Rentals are largely on a crop share basis. Voluntary sales of farm land are rare, as those financially able to hold their farms will not sell at present prices. Some farms are being lost through foreclosure but, on the whole, there is the utmost cooperation between debtors and creditors to enable purchasers to retain their equities. Livestock Corn belt feed lots have been comparatively dry with livestock on feed generally making satisfactory gains. Cattle and sheep on western ranges are in fair to good condition except in a few dry areas. Extremely low temperatures the second week of February caused considerable shrink but, with the exception of old ewes in the range areas, losses were light. Ewe bands are generally carrying a larger number of old ewes than usual. Snow the forepart of February closed most of the ranges and necessitated additional feeding, but feed supplies are, with few exceptions, ample for normal spring needs. A considerable number of cattle have been moved from eastern Colorado into western Kansas for wintering. Fed lambs have been moving to market from the feed lots of northern Colorado, the Arkansas Valley, and the Scottsbluff section. Shipments from January 1 to March 11 have totaled 3,177 cars, compared with 3,141 cars last year and 3,051 cars two years ago. Estimates of the United States Department of Agriculture placed the number remaining on feed in the three sections March I 1 at 935,000 head on 17 percent less than one year and II percent less than two years ago. Some sales of fat western Colorado lambs scaling 90 to 96 pounds are reported at $5.2.5 to $5.35 per hundredweight, Cattle Kansas City.............. Omaha........................ ·St. Joseph .............. .... Denver·-····················· Oklahoma City.......... Wichita .. .................... 94,848 89,251 26,719 18,030 19,7°5 16,258 5 freight paid to the Pacific Coast, or $4.50 to $4.6o per hundredweight on a flat basis. The early lamb crop of 1933 is estimated as about 8 percent smaller than that of 1932. due to a reduction of the number of breeding ewes in the early lambing areas. MARKETING: Severe weather the forepart of February restricted the marketing of livestock somewhat. Receipts of cattle and hogs at the six principal market centers of the Tenth District were the smallest recorded for any February in the fifteen years of record. Marketings of sheep and lambs were the lightest since 192.7, of horses and mules since 192.2., and those of calves, although 6.9 percent heavier than a year ago, were otherwise the lightest since 192.1. The February arrivals of sheep exceeded those for January, the increase for the month amounting to 22..3 percent. Arrivals of horses and mules totaled 8,677 head as against 10,066 in January and 10,523 in February, 1932. The quality of cattle received during the month was, on the whole, only fair, and many of the hogs received were plain and unfinished. Receipts of cattle at sixty-two public stockyards in the United States the first two months this year were 8.1 percent less than a year ago and 14.5 percent less than the five-year average. Calf numbers declined 6 and 13.6 percent, sheep and lambs 15.7 and 0.4 percent, and hog numbers, due in part to heavier direct buying, 22..7 and 33.9 percent. PRICES: Livestock prices showed little change during February. Beef steers were mostly steady with the lighter weights developing moderate strength. Heifers and mixed yearlings were steady to lower, with other classes unchanged. Stocker and feeder demand was fairly broad, closing the month at Kansas City at an average cost of '$4.33 per hundredweight or 1,1.13 under a year earlier. The month's top for beef steers was $6.60 or $3.2.5 under a year ago. Hogs were sharply higher during the cold weather but values receded thereafter to close the month 1 5 to 2. 5 cents higher. Top for the month was $3.60, a year ago $3.90. With western feeders unloading fat lambs freely during February, prices declined 15 to 25 cents per hundredweight to establish the season's lowest price, with the large end of the supply selling from $5.15 a hundred pounds and down, averaging about $1 under February, 1932., prices. Feeder lambs met a fair demand but shared in the price decline bulking at $4.2.5 to '$5. WOOL: The Division of Crop and Livestock Estimates, United States Department of Agriculture, placed the 1932. wool production at 344,354,000 pounds of shorn wool and 67,100,000 pounds of pulled wool as compared to a 1931 production of 372.,22.8,000 and 66,100,000 pounds, and a 1930 production of 350,3u,ooo and 61,900,000 pounds. Estimates placed the number of sheep shorn in 1932. at 44,431,000 head FEBRUARY MOVEMENT OF LIVESTOCK IN THE TENTH DISTRICT STOCKERS AND FEEDERS RECEIPTS PURCHASED FoR SLAUGHTER Calves Cattle Hogs Sheep Cattle Calves Hogs Calves Hogs Sheep Sheep 25,937 13,748 *245,93 2 150,026 101,674 2,249 I 5,553 8,947 •219,103 3,7 27 44,499 6,787 4, 252 4,667 3, 195 4,014 :264,811 February 1933------ ··· 36,663 315,669 January 1933---····· 49,634 February 1932·----··· 292,356 34, 294 2 Months 1933.......... 580,480 86,297 1 Months 1932 .......... 618,444 68,970 *Includes 149,24-4 hogs shipped direct to 215,460 104,957 47,778 40,680 43,672 157,651 109,065 158,043 5,862 16,058 698,479 596,7o5 94o,7o4 487,784 1,015,892 712,673 1,676,620 1,084,489 2,120,098 1,400,427 packers' yards. 16,884 4,3 2 3 5,533 52,677 64,100 41,865 n6,777 95,004 2,533 4o5 2,555 9,220 13,412 3,973 22,632 10,938 2,383 667 373 5,672 5,5 1 3 5,35 1 II,185 10,548 16,721 7,214 8,368 47,856 55,945 49,822 103,801 108,719 56,4 15 20,372 8,227 12,073 6,637 4, 2 54 3,874 1,729 2,873 1,305 148,223 172,39:2 168,905 320,615 352,828 22,982 26,613 28,495 4 2,0 53 99,900 89,5o3 19,029 5,224 14,386 589,997 810,509 835,448 49,595 1,437,943 54,088 1,694,936 329,716 3o5,894 448,076 635,610 923,466 170,II9 90,928 3o,769 37,02 5 6 THE MoNmLY REVIEW 1 or a 4° percent smaller num her than the year before. AYerage fleece ~weight was 8.05 pounds this year, 8.44 last year, and 8.29 in 1930. Meat Packing Operations at Tenth District meat packing establishments, as judged by the number of meat animals purchased for slaughter at the six principal market centers, were substantially lighter for all departments in February than a year ago or normally. Purchases of cattle and calves were the lightest for any February in over fifteen years, swine numbers, including hogs shipped direct to packers' yards, the smallest since 1926, and purchases of sheep and lambs the smallest since 1927. The February slaughter of sheep was 7.8 percent larger than the January slaughter, but that of cattle was 14, calves 13.6, and hogs 27.2 percent smaller. Additional foreign restrictions were placed recently on importations of meats, particularly pork and lard. Germany increased the import duty on lard from $1.10 per hundred pounds to t,5.40. Poultry and Dai.ry Products With egg production near the peak and supplies accumulating at market centers during the bank holiday period, prices established a new low of 8,½ cents per dozen at Kansas City on March 14 as against 9¼ on the same date last year. Storage operations, which were delayed by the financial restrictions, became quite active when the banks reopened. Hatcheries report a decided decline in numbers of baby chicks sold ro date and in bookings for future delivery, despite the fact that chick prices are lower than ever before. Poultry prices were unchanged to lower for the month. New crop broilers are quoted at 14 cents per pound or 4 cents under a year ago and 25 cents under three years ago. Butterfat prices advanced 2 to 3 cents per pound in February but had lost a substantial part of the gain by the third week in March. Cheese prices are low and steady. Kansas fluid milk prices averaged $1.20 per hundredweight in February compared to $1.30 in January and $1.69 in February, 1932. Cold storage holdings in the United States as reported by the Bureau of Agricultural Economics, United States Department of Agriculture. *Mar. I Feb. 1i 1933 Mar. t Mar. 1 1932 5-Yr.Av Beef, lbs................................................. 39,550 51,107 73,37° Pork, lbs.......... 575,084 812,399 856,406 Lamb and mutton, lbs....................... 1,694 2,029 1,784 3,6o7 Poultry, lbs. ........................................ 88,691 104,833 96,422 103,474 **Turkeys, lbs...................... 15,837 12,636 16,728 13,853 83,830 Miscellaneous meats, lbs.·--··············· 46,089 47,3 13 73,368 Lard, lbs.............. ................................ 59,034 52,841 92,861 II4,94o 2 58 Eggs, cases ......................... 162 165 75 Eggs, frozen (case equivalent).......... 1,153 1,410 1,327 1,944 17,833 15,243 23,752 Butter, creamery, lbs.·-··-··················· II,581 Cheese all varieties, lbs. 55,720 63,321 60,962 62,353 (ooo omitted). *Subject to revision. **Included in Poultry. 1933 36,032 610,186 Petroleum Daily average production of crude oil at wells in the five oil producing states of this District in February, as estimated from the weekly reports of the American Petroleum Institute, totaled 6u,ooo barrels. This total was 45,000 barrels in excess of that reported by the Bureau of Mines for January and 8,000 barrels larger than a year ago. Gross production was, however, due to the shorter month, slightly less than in either January this year or February, 1932. Gross production of crude oil in the District and the United States is shown in the following: Oklahom..___ __ Kansas ...................................... . Wyoming..................................... . Colorado ....................................... . New Mexico_ __ *Feb. 1933 Barrels 12,240,000 2,895,000 878,000 73,000 1,038,000 J an. 1933 Barrels 12,482,000 2.,933,ooo 1,010,000 88,ooo 1,003,000 Feb. 1932 Barrels 12,478,000 2,736,000 1,085,000 107,000 1,079,000 Total five states ...... _ _ _ _ Total United States.................... 17,124,000 58,658,000 17,516,000 63,998,000 17,485,000 62,484,000 Crude oil prices have been steady with mid-continent quotations ranging from 28 cents per barrel for low gravity oil to 52 cents for oil testing 40 degrees and above. Refinery and natural gasoline, kerosene, and fuel oil prices were firm throughout February but weakened somewhat the forepart of March. Cold Storage Holdings Bituminous Coal A comparison of the reports issued by the Bureau of Agricultural Economics shows that on March 1 United States cold storage holdings of all commodities were substantially smaller than one year earlier or the five-year average for that date. Compared to the five-year average holdings, declines for the various commodities were as follows: beef, 50.9; pork, 28.8; lamb and mutton, 53.0; poultry, 14.3; miscellaneous meats, 45.0; lard, 48.6; eggs (case and frozen), 16.5; butter, 51.2, and cheese, 10.6 percent. Aside from a subnormal seasonal increase in stocks of pork and lard, largely accounted for by decreased receipts of hogs at market centers, storage holdings of all commodities declined somewhat in February. Net withdrawals of beef were decidedly heavier than a year ago but slightly less than the five-year average. The out-movement of lamb and mutton and poultry was heavier and of butter and cheese lighter than during February, 1932, or normally. With storage stocks of eggs in cases depleted, there was, contrary to normal trends, a net increase in storage holdings of loose eggs in February, whereas, stocks of frozen eggs showed normal withdrawals. March 1 marked the beginning of the new egg storage season, but the in-movement did not get well started until about March I 5. ~;, ·cold weather demand the forepart of February stimulated the production of soft coal at mines in this District. The February tonnage was 8.9 percent greater than the January output but 1.2 percent less than a year ago. United States production was also heavier for the month but below the February, 1932, figures. Soft coal production in this District and the United States: Colorado.---································· Kansas ..... - - - - - - Missouri ............ - - - - New Mexico..•---- - - Oklahom"------Wyoming................... _ _ __ "Feb. 1933 Tons *Jan. 1933 Tons 585,000 553,000 217,000 367,000 n5,ooo 148,000 330,000 205,000 308,000 115,000 II7,ooo 320,000 Feb.1931 Tons 594,000 188,000 368,000 108,000 103,000 423,000 Total six states............................ 1,762,000 1,618,000 1,784,000 Total United States.................... 27,220,000 27,060,000 28,013,000 *Estimated from the weekly reports of the United States Bureau of Mines. Preliminary figures compiled by the Bureau of Mines, Department of Commerce, place the United States production of coal of all classes in 1932 at 322,064,000 tons and world production at 1,106,000,000 metric tons as compared to 400,733,000 and 1,256,000,000 tons in 1931. 7 THE MONTHLY REVIEW Zinc and Lead Sub-zero temperatures forced a temporary suspension of operations at zinc and lead mines in the Tri-state district the second week of February, but mines were reopened the following week. Zinc ore shipments, which every week so far this year have been running substantially heavier than for the corresponding week of the preceding year, declined 37.8 percent for the four weeks' period ended March 4 as compared to the preceding four weeks ended February 4. Lead ore shipments increased 17.2 percent as compared to the four weeks ended February 4 this year but were 19.5 percent smaller than for the four weeks ended March 5 last year. Shipments of zinc and lead ore from mmes in Missouri, Kansas, and Oklahoma: Oklahom~------ Kansas ............................................. Missouri...... · · · · · - - - - - - Tons 14,630 4,963 200 ORE Value '1,238,378 80,584 3,253 4 Weeks ended March 4, 1933..._ 4 Weeks ended Feb. 4, 1933.......... 4 Weeks ended March 5, 1932...... 19,793 31,808 16,106 $322,215 565,377 289,908 ZINC LEAD ORE Tons Value 1,498 '/, 47,936 724 23,168 92 2,944 2,314 1,975 2,873 $ 74,048 63,200 II4,920 Zinc ore quotations lost and regained '$I per ton during the month to close at $17 as against $18 last year. Lead ore was steady at $32.50 per ton, whereas, in February last year prices declined $5 per ton to close at $35. Lumber Sales of lumber in board feet at 158 retail yards located in cities and towns of this District declined 5.2 percent in February as compared to January, but were 9. I percent larger than in February, 1932. Dollar sales of all materials were 14.5 percent smaller than for the preceding month and ·15.8 percent smaller than for the corresponding month last year. Stocks of lumber at the close of the month were slightly smaller than one month earlier and 17.7 percent below those of February 29, 1932. Collections during February were equal to 19 percent of amounts outstanding January 31, approximately the same ratio as reported for February last year. January collections totaled 21.4 percent of amounts due at the close of 1932. February business as compared to January this year and February last year in percentages of increase or decrease: Sales of lumber, board fee._______ Sales of all materials, dollars ...... _ _ _ _ Stocks of lumber, board fee'-----············ Outstandings, end of month.............................. February 1933 Compared to January 1933 February 1932 - 5.2 9.1 -14.5 -15.8 - o.6 -17.7 - 1.9 --24.9 The National Lumber Manufacturers Association, on the basis of reports received from associations representing softwoods and hardwoods mills, places the production of lumber in the United States the first nine weeks of the current year at 14 percent of normal. In the nine weeks ended March 4 production equalled 90, shipments 76, and orders received 73 percent of the volume reported for the like period in 1932. Cement Tenth District production of finished Portland cement in February, as reported by the Bureau of Mines, although slightly larger than that estimated for February and April, 1932, was otherwise the smallest for any month in recent years. Shipments were also extremely light but exceeded production, resulting in a reduction in stocks of I I 2,000 barrels with inventories on February 28 the lowest since September 30, 1932. National production and ~hipments were the smallest reported for any month in recent years, but month-end stocks were larger than at any time since July 31. Mills operated at 13.4 percent of capacity in February as against 12.9 percent in January and I 8. 7 percent a year ago. Production of Portland cement in the District and the United States is shown in the following table: TENTH DISTRICT UNITED STATES Production Shipments Stocks Production Shipments Stocks Feb. 1933._.... 195 307 2,072 2,772 2,275 21,121 Jan. 1933.......... 217 324 2,184 2,958 2,502 20,624 Feb. 1932 ........ 186 277 2,398 3,971 3,II8 26,657 2 Mos. 1933·-··· 412 631 5,730 4,777 2 Mos. 1932...... 792 512 8,997 6,5u Building Tenth District building operations were less active in February than in any month in recent years. A comparison of the F. W. Dodge Corporation reports on total building contracts and residential contracts awarded in the District, as a whole, discloses that the February awards were the smallest for any month in over ten years. Total awards were equal to but I 5 percent and residential awards 9 percent of the February average the past five years. Awards in the United States showed exactly the same comparisons as for the District. Total and residential awards in the District and the United States, as reported by the F. W. Dodge Corporation, are shown in the following: TOTAL BUILDING CONTRACTS AWARDED TENTH DISTRICT UNITED STATES 1933 1933 193 2 1932 February .......... $1,799,194 $ 5,016,031 1, 52,712,300 t, 89,045,800 J anuary............ 4,165,200 4,058,692 83,356,000 84,798,400 Two months.--. 5,964,394 9,074,723 136,068,300 173,844,200 RESIDENTIAL CONTRACTS AWARDED TENTH1DISTRlCT UNITED STATES 1933 1932 1933 1932 February.......... $ 308,188 ~ 869,036 $ n,805,300 'I, 24,417,300 January............ 947,483 649,529 II,950,900 27,504,300 Two months. __. 1,255,671 1,518,565 23,756,200 51,921,600 Building departments of eighteen reporting cities issued fewer permits, with the lowest estimated cost of construction reported for any month, December, 1932, excepted, in the fourteen years they have been reporting to this bank. Compared to a year ago, the number of permits issued declined 38.8 percent and the estimated cost of construction declined 35.8 percent. BUILDING PERMITS IN TENTH DISTRICT CITIES PERMITS ESTIMATED 1933 1933 1932 Albuquerque, N. M . 20 'I, 246,860 1, 50 Cheyenne, Wyo ... 6 7 75° 41 Colorado Springs, Colo.·--········· 14 4,7 10 105,ojo Denver, Colo .......................·-····· 291 163 12 Hutchinson, Kans ....................... 6,510 17 20 Joplin, Mo ................................... II 6,050 12 Kansas City, Kans ..................... 7,165 34 Kansas City, Mo ......................... 41,200 II5 74 Lincoln, Nebr. ____ ........................ 16 13 6,175 Oklahoma City, O!da ................. 62,065 41 91 Omaha, Nebr............................... 26 26,830 35 28 3,063 36 Pueblo, Colo.·--··························· 0 0 17 Salina, Kans.·-········· 2,575 Shawnee, Okla ............................. 8 4 16 23,610 St. Joseph, Mo 15 22 Topeka, Kans. 27 8,905 Tu lsa, Okla. 19,654 49 57 23,9 27 Wichita, Kans ............................. 41 33 Total 18 cities, February·---····· Two month 555 1,148 9°7 1,569 'I, 595,u9 1,219,843 CosT 1932 35,95° 7,775 22,035 292,275 9, 235 8,831 23,480 150,500 2,710 120,736 111,986 20,935 16,98 5 495 13,265 10,750 43,023 35,610 'I, 926,576 1,809,431 8 THE MONTHLY REVIEW Business Conditions in the United States By the Federal Reserve Board Prn CCNT i~o mDUSTR IAL PRODUCTI ON 130 130 ,A. 120 tOO 120 \ / - 110 110 ~ 100 \ ,0 90 'V"'\. 80 '\... 70 60 80 70 \. _,- ... 60 ~ so m& 1930 1732 so l ~Jl Index number of industrial production, adjusted for seasonal variation. (1923-25 average =100.) Latest figure, February, 64. RESERVE BAl';K CREDIT AND FACTORS IN CHANGES l~SC'fOC'IUI.RS M•>.LICJ"-SOfCOltARS eooo 8000 1931 Wednesday figures for 12 F ederal reserve banks. Latest figures are for March 22. '4!LL'Ot.lOfDOliJ,~ @O MIWOHSfS OQ..1.AftS RESERVE BANK CREDIT /hJO ~ l - - - - + - - - - + - - - - 4 - - - ~--- ~ ~ ~ l - - - - t - -- ~ r - - - - - t - - - - t - - - + - - c -++-------1 ~ -+-- - - 4 - - -+ll-- ~ = 2000 r - - - - ; -- -- t - -+ldl----f---t=--------1 2000 15001"'1:--~ ••t--- - - t -- l-+---f---+-- ----1 1500. 1933 Wednesday figures for 12 Federal reserve anks. Latest figures are for March :i.:i.. The course of business in the latter part of February and the first half of March was largely influenced by the development of a crisis in banking, culminating in the proclamation on M arch 6 of a national banking holiday by the President of the United States. Production and distri bution of commodities declined by a substantial amount during this period, but showed some increase after banking operations were resumed in the mi ddle of March. PRODUCTION AND E M PLOYMENT: Volume of output at factories and mines, which usually increases at this season, showed little change from January to February, and declined considerably in the first half of March. In the steel and automobile industries ou tput decreased between the middle of February and the middle of March; subsequen tly some of the automobile plants which had been closed resumed operat ions, whi le activity at steel mills showed little change. In February output at cotton and woolen mills continued at the level prevailing in January, while at silk mills activity declined. Shoe production increased by more than the usual seasonal amount. Reports from important industrial states indicate that factory employment increased between the middle of J anuary and the middle of February, as is usual at this season. Construction contracts awarded up to March I 5, as reported by the F. W. Dodge Corporation, indicate that for the fir.s t quarter of the year the· total value of contracts • will show a considerable decline from the fourth quarter of 1932. DISTR IBUTION: Freight traffic, which usually increases at this season, showed li ttle change from J anuary to February, on a d aily average basis, and declined considerably in the first two weeks of M arch. Department store sales in the country as a whole were at about the same rate in February as in January, but were substantially smaller in areas affected by suspension of banking operations. Early in March sales were sharply reduced but with the reopening of banks showed some increase. WHOLESALE P R ICES: Wholesale commodity prices declined somewhat further in February. In the early part of March the commodity exchanges were closed; when they reopened on March I 5 and I 6, prices of grains, cotton, silk, non-ferrous metals, hides, and sugar were substantially above those prevailing at the beginning of the month; subsequently prices of many of these commodities declined somewhat. BANK CRE DIT: During February member banks in leading cities were subjected to wi thdrawals of deposits on a large scale, reflecting in part withdrawals of balances by interior banks from their city correspondents and in part withdrawals of currency by the public. As a consequence, net demand deposits of these banks declined by $1,306,000,000 during the month and their time deposits by $360,000,000. In order to meet these withdrawals the banks reduced their loans by $539,000,000 partly through t he sale of acceptances to the Federal reserve banks, and their investments by $363,000,000. They also increased considerably their borrowings at the reserve banks. March figures for member banks are incomplete. At t he F ederal reserve banks the banking crisis manifested itself between February I and March 4 in a domestic demand for $1,833,000,000 of currency, including about $300,000,000 of gold and gold certificates and in a foreign demand for about $300,000~000 of gold. As a consequence, the reserve ratio of the Federal reserve banks declined from 65.6 percent to 45.0 percent. This reflected a loss of $655,000,000 in reserves and an increase of $1,436,000,000 in Federal Reserve note circulation, offset in part by a decrease of $486,000,000 in deposit liabilities. Between March 4 and March 22, there was a return flow to the reserve banks of $558,000,000 of gold coin and gold certificates and of $319,000,000 of other currency, and the reserve r atio advanced to 55.5 percent. Discounts for member banks, which had increased to $1,432,000,000 by March 4, declined to $671,000,000 on March 22. ,,- Money rates in the open market advanced during the banking crisis, and on the resumption of business after the banking holiday, rates were at considerably higher levels than those prevailing on March 3. Subsequently rates declined as more funds became available to the m arket. On March 3, the discount rate of the Federal Reserve Bank of N ew York was raised from 2,½ to 3.½ percent, and on March 4 there was a similar increase at the Federal R eserve Bank of Chicago. The New York Reserve Bank's buying rate on bills was r aised by successive steps from .½ of I percent on February 26, for hills of the shorter maturities, to 3¼ percent on March 3. On March 13 the rate for these maturities was raised to 3.½ percent; subsequently the rate was reduced and on March 22 was 2 percent.
@FedFRASER