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THE MONTHLY REVIEW Of Agricultural, Industrial, Trade and Financial Conditions in the Tenth Federal Reserve District FEDERAL RESE.RVE Vol. 19 BANK Kansas City, Mo., April OF 1, KANSAS CITY No. 4 1934 B BUSINESS IN THE TENTH FEDERAL RESERVE DISTRICT USINESS in the Tenth Federal Reserve District conPercentages of Increase, or Decrease (-), for February 1934 over January tinued to improve in February. Debits by banks to individual accounts, reflecting the dollar volume of 1934 and February 1933 and for the first two months of 1934 over the like period in 1933. business transactions, were slightly larger than in Janauary 2 Months 1934 February 1934 and 24.4 per cent larger than in February a year ago. Gains Compared to Compared to Banking Jan. 1934 Feb. 1933 2 Months 1933 in trade volume were general with virtually every reporting Payments by check, 29 citie 1.2 16.5 24.4 retail and wholesale establishment showing a dollar volume Federal Reserve Bank clearings _________ - 7.3 51.1 53-4 of sales substantially larger this year than last. DepartBusiness failures, number -56.9 -57-4 - 8.3 Business failures, liabilities._. ___________ ment store sales increased 20.4 per cent and wholesalers' sales -72.2 - 65.1 34-7 ◄ Savings deposits, 44 selected banks. _____ 2.1 1.5 increased 45.3 per cent. Agricultural purchasing power adSavings accounts, 44 selected banks ___ 0.2 2.5 vanced more rapidly than at any time since last July as prices Distribution of livestock and dairy and poultry products, which have tended Wholesalers' sales, 5 lines combined ___ - I.4 4o.5., 45.3 to lag, worked higher. The record of commercial failures was Retailers' sales, 32 department stores._ 2.2 20.4 19.8 Lumber sales, 156 retail yards_ ________ -20.9 17.2 29.1 the best in fourteen years and farm foreclosures and forced Construction sales declined in number. Building contracts awarded, value_____ -47.9 127.6 100.4 Weather conditions were, on the whole, favorable for liveResidential contracts awarded, value.... -27.5 190.6 69.7 Building permits in 17 cities, value _____ -II.I stock and farm work. Livestock has wintered well and is 26.0 30.1 ~ in fair to good condition. Recent rains and snows, which were Production Flour -11.3 - 1.9 -2.5 general, temporarily relieved a shortage of surface soil moisture Crude petroleu 11.0·~ -14.0 2.5 and were beneficial to fall sown grains. A sub-soil moisture Soft coa -16.7 -4.0 -17.3 Zinc ore (shipped) Tristate District.... _ deficiency continues to exist. Farm work, seed bed prepara10.7 -17.8 0.5 Lead ore (shipped) Tristate DistricL... -21.8 -20.9 25.8 tion, and the planting of oats and potatoes are well advanced. Cemen -28.5 102.7 78.5 Livestock marketings and meat packing operations were, Grain receipts with the exception of sheep, somewhat heavier than a year Whea 2.1 --20.4 --i.7.9 Cor ago and more nearly normal than for sometime. Market re-32.6 34.o 52 •7 Oats 31.2 -22.3 46.4 ceipts of grain were, as in recent months, comparatively light. Ry -51.6 81.7 --'79.5 Building activity, although showing a sharp increase over Barley 13·9 -39.o 0.9 February, 1933, was in only al.-,:mt one-third normal volume. Kafir 29•5 -26.9 48.2 Flour production declined and petroleum output increased Livestock receipts, 6 markets Cattle 20.6 21.0 - 17.5 slightly. Output of bituminous coal showed a loss of 17.3 Calves____ 19·3 - 8.4 34• 2 Hogs __________ per cent. Shipments of zinc ore were larger and of lead ore 0.3 5.0 -34.5 Sheep _____ smaller than a year ago. -4.'l - 8.5 2.9 Horses and mules A proportionately small part of Government advances under 64.0 71.6 -5-9 production control measures and Federal financing, which Meat packing, 6 markets Cattl -16.5 33.o 35-2 will eventually be distributed throughout this District, have Calves 61.0 -11.3 58.7 been disbursed. The principal recipients to date are wheat Hogs 0.4 4-'l -35-4 Sheep __________ -15.2 -0.5 I'l.4 and cotton producers and those employed under Civil Works. --~-- Financial RESERVE BANK OPERATIONS: Bills rediscounted for member banks by the Federal Reserve Bank of Kansas City and branches declined $299,973 during the four weeks' period ended March 14 to a total of $357,187. Present holdings are the lowest in many years, comparing with $30,852,109 on March 15, 1933, the approximate peak of last year, and $n9,193,652 on October 15, 1920, when they were the highest of record. Holdings of bills purchased in the open market dedined substantially in four weeks and fifty-two weeks. Purchases of United States Government securities have shown no change in ten weeks and the total as of March 14 Stocker and feeder shipments, 4 markets Cattle_ ·-· ·-· ... --· ··-······Calves Hogs Sheep ...... -- -- -27.3 -53.5 -18.6 -16.8 -17.8 --25.8 - 1.5 5.8 j -11.9 -4-7 u.3 7.4 was 36.3 per cent larger than on the like date last year. Total holdings of bills and securities were 2 per cent smaller on March 14 than four weeks earlier and 15.7 per cent less than fifty-two weeks earlier. Member banks' reserve deposits, which have increased 56.1 per cent since March 15, 1933, are, with_one exception, January 24, 1934, the highest of record. An increase in Federal reserve note circulation of $1,928,975 in four weeks was more than offset by a decrease of $5,155,150 This Copy Released For Publication In Afternoon Newspapers, March 19. 2 THE MONTHLY REVIEW in the amount of Federal reserve bank notes outstanding. Total note circulation is now $36,166,685 less than a year ago. Changes in four weeks and fifty-two weeks are shown by a comparison of the principal resource and liability items contained in the weekly condition statements of this bank and branches as of the three dates: March 14, 1934 Feb. 14, 1934 March 15, 1933 Total reserv=-- - - - - - 1182,447,744 $170,248,181 $146,295,844 Redemption fund F.R.B. notes 500,000 500,000 Bills discounteU-- - - - 357,187 657,16o 30,852,109 BiUs purchased.. _ __ _ _ 1,339,582 2,792,910 8,879,272 U. S. securities...... _ _ _ _ _ 83,444,200 83,444,200 61,220,100 Total bills and securities............ 85,140,969 86,894,270 100,951,481 Total resources .. _ _ _ _ _ 302,107,587 292,020,540 273,21 3,395 F. R. notes in circulation .... - .. 109,254,560 107,325,585 149,699,955 F. R. bank notes in circulation 4,278,700 9,433,850 Member banks' reserve deposits 137,241,044 129,549,933 87,937,480 The discount rate of the Federal Reserve Bank of Kansas City, on all classes of paper and all maturities, remains unchanged at 3 per cent. t~MEMBER .·BANK OPERATIONS: Loans and discounts ~t fifty-two ni·~mber banks as of March 14 were approximately the same as four weeks earlier. Investment holdings continued to expand but new purchases were confined to United States Government securities, the total of securities increasing 3.8 per cent and investments in United States Government securities increasing 6 per cent. Net demand and time deposits were slightly larger on March 14 than on February 14 and Government deposits showed a gain of $9,000,000 for the period. No comparisons are made with a year ago as a nationwide banking holiday, invoked by presidential proclamation and extending from March 5 to March 14 and I 5, resulted in a postponement of a substantial volume of business transactions. The totals for the fifty-two banks as of the two dates: March 14, 1934 Loans and investments-tota._______ Loans and discounts-tota Secured by stocks and bonds_ All other loans and discount lnvcstmenu--tota U. S. securities___ Other bonds, stocks, and securities Reserve with F. R. ban Net demand deposits Time deposits.... Government deposits......... $552,000,000 198,000,000 62,000,000 ·136,000,000 354,000,000 246,000,000 108,000,000 83,000,000 407,000,000 165,000,000 30,000,000 ITEMS February...·--·· January_ .......... Two months·-··· 1933 3,328,098 3,708,108 7,036,206 $540,000,000 199,000,000 61,000,000 138,000,000 341,000,000 232,000,000 109,000,000 75,000,000 404,000,000 163,000,000 21,000,000 AMOUNT 1934 ,, 680,161,000 733,545,000 1,413,706,000 Bank Debits PAYMENTS BY CHECK Per cent FouR WEEJCS ENDED Increase Feb.28, 1934 March 1, 1933 18.5 6,009,000 Albuquerque, N. M 7,122,000 '$ '$ 15.8 Atchison, Kan 2,135,000 2,473,coo 29.0 Bartlesville, Oki 18,463,000 14,307,000 2,960,000 Casper, Wyo 3,064,000 3.5 7.0 Cheyenne, Wyo 4,oo6,ooo 3,743,000 28.1 8,082,000 Colorado Springs, Colo..__......... 10,352,000 83,163,000 35.6 112,744,000 Denver, Colo... - · · - - - - Enid, Okla......... 7,280,000 4,426,000 64.5 Fremont, Nebr 1,364,000 1,854,000 35.9 23•7 1,226,000 Grand Junction, Colo................. 1,516,000 Guthrie, Okla.. 1,229,000 863,000 42•4 41.8 Hutchinson, Kans ... 8,437,000 5,952,000 2,701 ,000 Independence, Kans ................... 3,646,000 35.o Joplin, Mo ......... 6,193,000 6,433,000 3.9 I.Z 8,096,000 8,194,000 Kansas City, Kans ..·--····· ...... 1 5,5 Kansas City, Mo .. - .......... ...... 205,328,000 177,835,000 10.4 Lawrence, Kans 2,803,000 2,540,000 28.9 19,799,000 15,362,000 Lincoln, Nebr...·-························· 17•7 4,626,000 Muskogee, Okl 5,445,000 Oklahoma City, Okla................. 46,514,000 63,958,000 37.5 16.2 Okmulgee, Okla. 1,700,000 1,976,000 Omaha, Nebr... 83,868,000 19.4 100,147,000 Pittsburg, Kans. 2,841,000 5.8 3,005,000 Pueblo, Colo 38.0 10,484,000 7,595,000 Salina, Kans 42.6 6,114,000 4,289,000 St. Joseph, Mo 22,694,000 17,340,000 3o.9 Topeka, Kans. 11,516,000 12,178,000 5.7 Tulsa, Oki 56,075,ooo 34.7 75,55 2 , 000 21.9 Wichita, Kans ....... 29,602,000 24,291,000 Total, 29 Total, 29 U.S., 266 U. S., 266 cities, 4 weeks.-......... cities, 8 weeks·--······· cities, 4 weeks·-········· cities, 8 weeks·-········· .,, 755,898,000 1,502,689,000 26,770,685,000 52,901,003,000 '$ 6o7,612,ooo 1,289,905,000 24,274,912,000 48,408,242,000 24.4 16.5 10.3 9·3 Feb.14,1934 RESERVE BANK CLEARINGS: This bank and branches at Omaha, Denver, and Oklahoma City handled 5,195,058 items, aggregating $680,161,000, for collection during February. Items handled during the month, although I 1.1 per cent less than in January, were 56.1 per cent greater than in February, 1933. The dollar amount, which declined 7.3 per cent for the month, increased 53.4 per cent as compared to a year ago. The totals follow: 1934 5,t95,058 5,841,o67 11,036,125 the United States showed a gain of 10.3 per cent for February this year over February, 1933. 1933 '/, 443,410,000 492,211,000 935,621,000 Savings Deposits to savings accounts in forty-four selected banks in leading cities of this District increased 1.5 per cent between February I and March 1, and the total as of the latter date was 2.1 per cent higher than on March 1, 1933. Savings ?,Ccounts in these banks increased 0.2 per cent in number during the month and 2. 5 per cent for the year. Savings accounts and savings deposits as reported by the forty-four banks: Savings Accounts March 1, 193_________ 375,646 February 1, 193 375,020 M arch 1, 193 366,48 8 Savings Deposits '$ 105,289,316 103,701,777 103,146,929 Business Failures Insolvencies in the District and the United States were less numerous in February than in any month since November, 1920. Amounts involved in Tenth District defaults, although slightly larger than for January, 1934, and October and December, 1933, were otherwise the lowest since September, 1920. Liabilities for the United States were less than at any time since May, 1920. Reductions from February last year for the District amounted to 56.9 per cent in number and 65.1 per cent in dollars as compared to declines of 55.9 and 61.6 per cent for the United States. Business insolvencies as reported by Dun and Bradstreet, Inc.: Banks in twenty-nine leading cities of the District reported $755,898,000 debited to individual accounts in February. This total represents an increase, in which all cities shared, TENTH of 24.4 per cent over a year ago and was slightly in excess of Number 44 the amount reported for the preceding four weeks ended Jan- • February 1934 - - - 48 uary 31. The increase over the corresponding period of the January 193 February 1933 102 previous year was the most favorable comparison reported in Two months 1934 · - - · 92 recent years. Totals for two hundred and sixty-six cities in Two months 1933 _ _ _ 216 DISTRICT Liabilities I 543,032 403,280 1,556,459 946,312 3,398,674 UNITED STATES Number 1,049 1,364 2,378 2,413 5,297 Liabilities $ 19,444,718 32,905,428 65,576,068 52,350,146 144,676,670 3 THE MONTHLY REVIEW Stores Reporting Kansas City ........ 4 Denver 4 Oklahoma City_. 3 Tulsa.................... 3 Wichita .....·-·····-- 3 Oth~r cities .......... 15 RETAIL TRADE AT 32 DEPARTMENT STORES IN THE TENTH FEDERAL RESERVE DISTRICT SALES ACCOUNTS RECEIVABLE•. STOCKS (RETAIL) STOCK TUR.MOVER. Feb.1934 Year 1934 Feb. 28, 1934 Feb. 28, 1934] compared to compared to compared to February Year compared to A Feb. 1933 Year 1933 Jan.31,1934 Feb.28,1933 1934 1933 1934 1933 J an.31,1934 Feb.28,1933J 12.8 .18 .16 -II.I - 2.2 12.7 .32 - 1.7 3.5 .37 ,22 21.2 21.2 12.6 -12.0 .19 .46 .39 7.5 13.011 27.6 26.4 19.2 4.8 .27 .65 5.0.J .33 .52 - 9.9 18.1 20.I 18.8 -14.8 16.5 9.1 .67 .35 .39 .74 27•5 26.8 6.8 30.0 20.5 .23 .19 .46 - 6.3 .35 ,22 ,20 19·9 -o.8 21.3 12.2 14.8 .43 .45 - 9.5 TotaL __ ··············· 32 20.4 19.8 11.9 7.4 .23 .20 .46 .40 NOTE: Percentage of collections in February on open accounts January 31, all stores reporting 39.6. A.MOUNTS COLLECTED February 1934 : ,:... compared to "• fan.1934 ~Feb.1 933 4.6 -24.6..1 22.0 -23.51 3.2 -24.3 19•7 -26.9 -26.8 23.0 -18.9 20.9 -10.7 4.6 -23.2 Collections same month last year 35.0. Trade Lumber Continuing the improvement of recent months retail sales of merchandise, as indicated by the dollar volume of trade at 32 department stores in the District, increased 2.2 per cent over January and 20.4 per cent over February, 1933. Cumulative sales for the first two months of the year were 19.8 per cent larger than in the corresponding period last year. The increases for February and the two months over the like month and period of the preceding year were the first reported since 1928 as compared to 1927 and all stores but one participated in the gains. Inventories were enlarged 11.9 per cent, or about as usual, during the month and stocks on hand as of February 28 were 7.4 per cent heavier than one year earlier. Not since 1928 have merchandise holdings at the end of February been larger than in the previous year. Collection percentages were about the same in February as in January but better than a year ago. Collections on 30-day accounts equaled 39.6 per cent of amounts outstanding on January 31 as compared to ratios of 40 per cent for January this year and 35 per cent for February last year. Collections on installment accounts averaged 15.5 per cent in February, 1934, as against 14 per cent in February, 1933. WHOLESALE: Showing the first increase for the month since 1928 as compared to 1927, February sales of five representative wholesale lines combined were 45.3 per cent larger than a year ago. Every firm in each of the five reporting lines had a substantial sales increase over February, 1933. Increases for hardware, furniture, and drugs of 67.9, n3.7, and 40 per cent, respectively, were the first reported for the month in four years. Sales of dry goods increased 58.2 per cent and of groceries 19 per cent. The last February gain recorded for dry goods was in 1928 and for groceries in 1929. Combined sales of all lines for the two months also showed the first improvement since 1928. Changes as compared to January were about as usual. Inventories of wholesale firms at the close of February showed stocks of groceries were smaller than on the corresponding date last year, while those of dry goods, hardware, furniture, and drugs were larger. The increase for dry goods was the first reported for the date in six years, hardware and drugs in five years, and furniture in four years. The last increase reported for groceries was in 1928. RETAIL: Sales of lumber, as reported by I 56 retail yards located in the Tenth District, declined somewhat more ,than usual in February as compared to January, but were 17.2 per cent larger than in the same month last year. Dollar sales of all materials also declined for the month but showed a gain of 43.6 per cent over February, 1933. Inventory .,changes have been slight in recent months and lumber stocks as of February 28 were approximately the same as one month and one year earlier. Collections during February equaled 30 per cent of amounts outstanding on January 31. In January collections totaled 33.8 per cent and in February, 1933, 19 per cent of amounts receivable. February trade is herewith compared to that of January this year and February last year in percentages of increase or decrease: Reporting Stores Dry goods ..... _..····-·····--·· 6 Groceries .... 5 Hardwar 9 Furnitur 5 Drugs 7 February 1934 Compared to January 1934 February 1933 Sales of lumber, board fee._______ -20.9 17.2 Sales of all materials, dollars .... _ -17.7 43.6 Stocks of lumber, board fee - o.6 1.0 Outstandings, end of mont - 3.6 - 5.4 Reports to the National Lumber Manufacturers Association, covering the first eight weeks of the new year, indicate national lumber production is 48 per cent greater than a year ago, with shipments 19 per cent and orders booked 32 per cent larger. Orders were 3 per cent above and shipments 9 per cent below output. Gross stocks of lumber at mills on February 24 were about 9 per cent lighter than on the similar date in 1933. Building Building activity in this District, although somewhat smaller in February than in January and equal to but about one-third the normal volume, was considerably heavier than a year ago. The value of total construction and residential contracts awarded in the Tenth District, reported by the F. W. Dodge Corporation, showed substantial increases for both February and January over the corresponding months of 1933. February gains were somewhat larger than those recorded for January. Total construction for the two months' period doubled and residential awards increased 69.7 per cent as compared to the like period last year. WHOLESALE TRADE IN THE TENTH FEDERAL RESERVE DISTRICT SALES OuTSTANDINGS AMOUNTS COLLECTED Feb. 28, 1934 compared to Feb. 1934 compared to Feb. 1934 compared to Feb.1933 Jan.31,1934 Feb. 28, 1933 Jan. 1934 Feb. 1933 Jan 1934 - 2.8 -10.1 58.2 5.6 - 3.5 39.o 10.2 19.0 4.0 -u.3 -3.6 1.3 12.6 2.1 II.9 68.7 67.9 4•3 20.8 11.2 14.0 III,5 9.2 113.7 -2.0 1.0 -2.8 40.0 26.3 - 13.7 STOCKS Feb. 28, 1934 compared to Jan.31,1934 Feb. 28, 1933 0.2 11.2 6.4 - 5.6 24.1 1.5 I,4 -41.7 7.6 3.6 THE MONTHLY REVIEW 4 Residential and total building contracts awarded in the Tenth District and the United States as reported by the F. W. Dodge Corporation: RESIDENTIAL Tenth District United States Feb. 1934__ $ 895,510 $ l4,p.o,300 Jan. 193-4___ 1,235,714 15,no,400 Feb. 1933__ :l0S,188 n,805,300 2 Mos. 19342,131,224 29,630,700 2 Mos. 19331,255,671 23,756,200 ToTAL Tenth District United States I -4,094,506 $ 96,716,300 7,857,569 187,463,700 1,799,194 52,712,300 n,952,075 284,180,000 5,964,394 136,ot>S,300 Seventeen reporting cities in the District issued more building permits in February than in either January, 1934, or February, 1933, but estimated construction costs, although 26 per cent above a year ago, were 11.1 per cent under the January figures. For the year to March I the number of permits issued showed an increase of 16.5 per cent and construction costs a gain of 30.1 per cent. Permits issued and estimated construction costs as reported by seventeen Tenth District cities: Albuquerque, N. M Cheyenne, Wyo•.. Colorado Springs, Colo..- ......... Denver, Colo,_ Joplin, Mo. ____ Kansas City, Kans. Kansas City, Mo. Lincoln, Nebr Oklahoma City, Okla.-.. ·-··-···· Omaha, Nebr Pueblo, Colo Salina, Kans Shawnee, Oki St. Joseph, Mo Topeka, Kan Tulsa, Oki Wichita, Kans. Total 17 cities, Feb Two months PERMITS 1934 1933 20 33 6 25 14 15 163 171 6 II 12 13 86 74 16 55 41 93 26 39 18 28 0 3 8 8 16 15 22 19 47 49 37 33 684 1,303 538 J,II8 ,, ESTIMATED CosT 1934 1933 246,860 10,530 6,312 75° 4,710 8,445 105,070 n5,379 ,, 6,050 3,95° 10,400 95,700 21,6o3 184,970 107,575 3,949 96o 4,225 12,210 7,980 121,365 26,108 ,, 741,661 1,575,5-48 ,, 7,165 41,200 6,175 62,065 26,830 3,o63 0 2,575 23,610 8,905 19,654 23,9 27 588,609 1 , 209,573 Flour Milling Output of flour at Tenth District mills during February was the smallest, and the rate of mill activity the lowest, for the month since 1926. Production fell n.3 per cent below that for January and was 1.9 per cent less than a year ago. Mills operated at an average of 59.2 per cent of full-time capacity for the month as compared to 59.4 per cent in January this year and 6o.3 per cent in February last year. Production figures at the principal milling centers, as estimated from the weekly reports of southwestern mills to the Northwestern Miller, arc shown herewith: Atchiao,......__ _ _ _ _ _ _ __ Kansas City_ _ _ _ _ _ _ __ Omah...__ _ _ _ _ _ _ _ __ Salin _ _ _ _ _ _ _ _ _ __ Wichit---------Outside..___ - ·- _ -· _____ ... _ Feb. 1934 Barrels 111,5o6 44 2 , 1 79 96,858 137,780 148,861 749,746 Jan. 1934 Barrels 126,048 523,417 105,644 152,224 168,034 82(,443 Feb. 1933 Barrels 113,579 491,827 87,282 n8,788 174,409 733,465 Tota,_____________ -United S t a t ~ - - - - - - - 1,686,930 1,900,810 1,719,350 5,119,342 5,565,o63 4,829,492 *Represents about 6o per cent of the total output in the United States. Several round lots of flour were sold during the month but the majority of sales were small and for immediate shipment. Prices were steady to lower except for clears and low grade flour which strengthened somewhat as supplies became less burdensome. Shipping directions were spasmodic, with bookings reported being absorbed more readily than considered likely a few months ago. Demand for limited offerings of millfeed was good throughout the month and prices were steady to higher. Most of the output was absorbed by the mixed car trade, with bran in better demand than shorts although sales of the latter improved. Production and consumption of flour in January was the largest since May, 1933, according to the Department of Commerce. Production of flour for the first seven months of the crop season showed a loss of nearly 6 million barrels as compared with the previous season and consumption of wheat was 27 million bushels less. Grain Mark eting Marketings of grain continue unusually light, reflecting in part the light crops of last season. Only twice in the past fifteen years have February receipts of corn, rye, and barley at the five principal grain markets of the D istrict been smaller than in 1934. Receipts of wheat were the lightest for the month of record as, excluding 1933, were those of oats and kafir. Supplies of wheat were 2.0 per cent under a year ago and equal to but 40 per cent of normal offerings. Marketings of corn and oats were a third heavier than in February, 1933, but respectively equal to only 43 and 55 per cent of the tenyear average volume. Government loans of 45 cents per bushel on corn in the crib reduced offerings of that grain at public markets. February receipts of six classes of grain at the five markets: Wheat Bushels Corn Bushels Hutchinson ...... 5,000 557,550 Kansas City·-··· 2,446,400 1,204,500 660,800 689,600 Omaha_··········172,800 855,000 St. Joseph ·-··-198,900 Wichita.--········· 375,000 Feb. 1934-......._ Jan. 1934........_ Feb. 1933.......... 2 Mos. 1934·-·2 Mos. 1933._ _ Oats Bushels 9,000 106,000 32,000 552,000 Rye Bushels Barley Bushels 6,000 19,600 11,200 22,400 Kafir Bushels 36,400 12,000 102,200 2,600 4,24x,350 2,924,200 711,000 4,15-4,600 4,337,700 485,500 5,326,300 2,182,650 542,000 8,395,950 7,261,900 1,196,500 n,643,850 4,756,800 1,539,500 25,6oo 125,000 52,900 150,600 82,900 33,6oo 141,200 55,050 193,100 33,300 95,300 88,650 77,800 334,300 258,200 Grain prices generally tended lower, wheat declining 5 cents, rye 4,½, oats and kafir 3, and corn and barley I cent per bushel for the month. At this time last year prices were at the lowest levels in the history of the grain exchanges, and after March 3 trading in futures was suspended for two weeks. Cash grain prices at Kansas City in cents per bushel as of the dates indicated: No. No. No. No. No. No. Mar. I 5 1934 I hard & dark wheat $.82 2 mixed corn. ___ ···· .45¼ 2 white oats.............. .33 2 rye_····---.58.½ 2 barley_ _ __ .46 2 kafir ______ .82 Feb. 28 1934 $.81.½ J an. 31 1934 $.86.½ .44 .44,½ .34,½ .58 .44,½ .74 .37¼ .63½ .45½ .77 Feb.28 1933 $.43¼ .20¼ .17 .32 .23.½ Jan.31 1933 $.42,½ .21¼ .17 .33.½ .23 ·44 Agriculture CROPS: Field work and seed bed preparation, which made unusually good progress up to the final week of February, was then halted by general snows and freezing temperatures extending into March. The much needed moisture varied from one-half inch to one inch, leaving the surface soil temporarily well supplied. Sub-soil moisture is still deficient, particularly in the western part of the wheat belt. Snows in the mountain regions also increased the supply of water for irrigation purposes. Wheat has improved the past few weeks and, although some damage from soil blowing has been reported from western Kansas and the Oklahoma panhandle,abandonment will probably not be as heavy this year as last. Seeding of oats is general, nearing completion in Oklahoma and southern Kansas. Plant- 5 ThE MONTHLY REVIEW PLANT! G INTENTIONS OF SIX CROPS PRODUCED I N THE SEVEN STATES OF T HIS DISTRICT AND THE UNITED STATES As Reported by the United States Department of Agriculture. (Acres in thousands, ooo omitted.) AcRES INDICATE D F o R. HARVE ST PER CENT or 1933 Tame Spring Grain T ame Spring Grain Hay Corn Wheat Oats Sorghums P otatoes H ay Corn Wheat Oats Sorghums Potatoes Colorado ______ __________ _ 288 170 278 99 1,321 85 103 105 98 1,703 99 Kansas _ __ __ 22 1,497 1,768 48 1,119 80 150 98 110 98 5,595 Missouri _____________ _ 102 110 3 1,676 92 59 2,8 53 82 100 95 105 4,936 Nebrask _ _ __ 232 2,226 37 135 1,796 81 56 100 100 96 8,449 117 New Mexico __________ 226 110 100 110 100 105 28 38 409 8 172 95 Oklahoma ___ __________ III 105 2,156 104 105 1,289 1,456 38 471 83 WyominF,-g_ _ __ 100 110 1 97 128 96 105 . 159 34 874 90 Seven states_______ _ United States _______ _ 4,040 8,743 701 16,439 421 3,412 ing of potatoes in t he Kaw valley of Kansas and the Orrick district in Missouri, and of onions in the Arkansas Valley commenced the forepart of March. An increase of 12 per cent in the Kaw valley potato acreage is indicated by growers' intentions. Sub-zero temperatures in the northern half of the District damaged peaches severely, but other fruits have apparently escaped injury. With over 50 per cent of the acreage of strawberries in the Ozark region consisting of new first-year beds and fields in good condition, prospects for the approaching season are reported good. On M arch I 5 the Crop Reporting Board of the United States Department of Agriculture issued a summary of farmers' planting intentions for the coming year as indicated March I. According to the report the nation's spring wheat acreage will be reduced less than one-half million acres, or 2..5 per cent, whereas, the Government program seeks a reduction of IO to I 5 per cent. Corn acreage will be 9.9 per cent less than in 1933. Producers who will participate m the corn-hog program have agreed to cut their corn acreage at least 20 per cent. Tobacco acreage, also subject to production control measures, will be reduced 25.6 per cent and that of rice 3.9 per cent. Increases are indicated for various other crops as follows: oats 5.7, barley 17.6, flaxseed 21.5, grain sorghums 7.4, potatoes 7.2, sweet potatoes 4.2, dry beans 10.9, cowpeas 9.8, and tame hay 0.5 per cent. LAND: There has been a general decrease in the number of farms forced for sale recently. Voluntary sales at prevailing prices have also shown a marked decline. Farm rentals are mostly on a share basis. PRICES : A gain of 6 points in the tarm price index of the Department of Agriculture, between January 15 and February 15, was the largest monthly increase since last July and raised the index of prices of farm commodities to 76 per cent of the 1909-1914 average of 100. A year ago the index stood at 49. The index of prices farmers pay advanced 2 points to II8 on February 15 compared with IOI on February I 5 last year. Farm purchasing power, based on the ratio of prices received to prices paid, advanced from 49 per cent of the 1909-1 914 average on February 15, 1933, to 64 per cent on the same date this year. 8,606 54,09 2 81.6 90.1 80.6 98.1 100.4 10 5•7 106.7 107.4 112.9 107.2 99.7 100.5 Livestock Weather conditions continued favorable for livestock on farms and ranges during February. The February 1 condition of cattle and sheep on western ranges was reported fair to good and the same as on J anuary 1. Ranchmen were able to make full use of range feed and conserve the short supplies of hay, grains, and forage and reduce expenditures for supplemental feeds. Winter losses of sheep, largely of old ewes, have been light. Feed lots in the western part of the District became muddy in March and livestock on feed failed to make satisfactory gains. Also, wheat fields were too soft to pasture. A shortage of stock water has, with few excep tions, been temporarily relieved by recent r ains and snows. There were 880,000 lambs left in northern Colorado, Arkansas valley, and Scottsbluff section feed lots on March IO, compared wi th 985,000 and 1,1 25,000 one and two years ago, according to the Division of Crop and Livestock Estimates. Shipments from these three areas since J anuary 1 have totaled 2,455 cars this year, compared with 3,133 last year and 3,131 in 1932.. The early spring lamb crop of 1934 is a little larger than the early crop of 1933. A shipment of these lambs from Arizona was received at Kansas City M arch 19. According to a recent announcement, national grazing fees for cat tle will be lower and for sheep higher in 1934 than in 1933. T he fee for cattle will be 52 per cent and for sheep 53 per cent of the 1931 r ate as compared to 62.4 and 46 per cent, respectively, in 1933. MAR K ETIN GS: Receipts of livestock at the six principal market centers of the D istrict during February were somewhat smaller for all classes than in the preceding month. Marketings of cat tle, although 20.6 per cent heavier than a year ago and t he largest for the month in four years, were in normal supply. Calf num bers were the largest since 1928 and 9 per cent in excess of the ten-year average. The pig slaughter campaign of last September was partially responsible for the light supply of hogs which, although fractionally larger than a year ago, were otherwise the smallest for the month in fifteen FEBRUARY MOVEMENT OF LIVESTOCK IN THE TENTH DISTRICT RECEIPTS Cattle 20,774 12,932 3,377 6,232 Calves 2,252 1,652 169 2,771 3,401 6,119 Sheep 128,967 153,322 91,094 160,043 2,968 9,368 February 1934--- ---· 49, 197 700,574 53,715 1,069,504 545,762 569,829 43,315 January 1934---·-·· 6,844 14,721 9,220 Kansas City ____________ Omaha ______ St. Joseph ___________ _ Denver_ _ _ __ Oklahoma City_______ _ Wichita ________ _ 319,295 386,790 February 1933--264,811 •Includes 145,271 hogs shipped Calves 19,736 7,930 6,448 5,563 PURCHASED FoR SLAUGHTER STOCJC.ER.S AND FEE DERS Hogs •227,565 247,042 104,973 64,999 30,251 25,744 Cattle 108,045 112,633 33,687 20,524 23,891 20,515 36,663 698,479 596,705 direct to packers' yards. 59,554 52,677 Hogs 2,1 72 2,349 46I 605 Sheep 20,727 Cattle 66,560 9,55 2 3,5 1 9 70,985 26,570 8,670 16,242 8,1 79 50,650 197,206 236,215 148,223 16,852 60,884 47,856 Calves 16,967 6,278 6,179 2,268 2,698 2,609 Hogs •214,425 192,268 101,978 34,238 25,932 23,317 Sheep 95,472 129,258 80,409 11,136 2,402 9,251 36,999 592,158 916,336 327,928 589,997 329,716 41,706 22,982 386,673 6 THE MONTHLY REVIEW years of record, or 30 per cent short of the average volume. Offerings of sheep and lambs were 15 per cent smaller than usual and 8.5 per cent less than a year ago. Horses and mules arrived in normal numbers but receipts exceeded the light movement of February, 1933, by 71.6 per cent. The countryward movement of stocker and feeder cattle, calves, and hogs from four markets was somewhat smaller than in either January this year or February la~t year. Shipments of sheep and lambs, although 16.8 per cent less than in the previous month, were 5.8 per cent above a year ago. The final advance in the processing tax on pork of 75 cents per hundred pounds became effective March I, making the total tax 'l,2.25 per hundredweight. Government buying of cows and hogs was renewed during the month but the purchase of hogs and pork products was suspended March 8. Higher swine values have resulted in a material improvement the past two months in the corn-hog feeding ratio which has advanced from the near record low of 7 bushels of corn to 100 pounds of pork early in January to 9.5 recently, or 2 points below the average of the last five years. PRICES: Fed lambs at $10 per hundredweight at Kansas City, the highest price in four years, fe atured the February gains in livestock prices. Without exception, all classes of all species of livestock showed substantial improvement for the month and sold higher than a year ago. In the cattle division increases ranged from 25 cents to 50 cents per hundredweight. Hogs were mostly $I higher, with light lights, when unsupported by Government buying, the only class to show a lesser gain, whereas, stock pigs made an extreme advance of $1.50. Fed lambs, native lambs, yearlings, and weathers were up 1,1 for the month, with fat ewes and feeder lambs 50 to 7 5 cents higher. Hogs and sheep closed at the full advance but cattle prices weakened slightly the final week of the month. February top prices at Kansas City this year compared to last were: beef steers, $7 and $6.60; calves, 'lq and t,6.50; stockers, $5.75 and 'l,5.60; hogs, $4.75 and 1,J.75; fed lambs, $10 and 'l,5.70; native lambs, $9.75 and '/,6; and fat ewes, '/,5.25 and 'l,2.75 per hundredweight. MEAT PACKING: Packers purchased, at the six market centers, 33 per cent more cattle, 61 per cent more calves and 0.4 per cent more hogs, including those shipped direct to their yards, for slaughter in February, 1934, than in the like month last year. Purchases of sheep and lambs showed a loss of 0.5 per cent. The slaughter of cattle was 9 per cent, and of calves 6 per cent above the ten-year average for February and the heaviest since 1928, whereas, the slaughter of hogs was 26 per cent and of sheep and lambs II per cent below the average. Purchases of sheep were the lightest for the month since 1927 and of hogs, excluding 1933, the lightest since 1926. Based on the number of animals killed under Federal meat inspection, the February slaughter of cattle in the United States was the heaviest in sixteen years and 29 per cent above the average of the past five years. Sheep slaughter was the smallest for the month in five years and 7.3 per cent less than last year. Swine numbers declined to 3,433,419 head in February as against 5,390,940 in January and 3,647,017 in February, 1933. Compared to January butcherings, all species showed substantial declines both in this District and the United States. Animals slaughtered under Federal meat inspection: February 193+-· January 1934---. February 1933._. Two month• 1934 Two month. 1933 Cattle Calves 732,638 831,356 568,908 1,563,994 437,099 471,:222 317,491 908,311 Hogs 3,433,-419 5,39o,94o 3,647,017 8,824,359 Sheep 1,159,u7 I,4o6,646 1,249,958 1,565,763 1,180,9u 661,045 8,346,634 2,581,-480 Poultry and Dairy Products On the basis of Kansas City quotations of prices paid to shippers, mid-March prices of butterfat, eggs, and poultry are substantially higher than the recent lows or at the like time last year. Extra butterfat is now quoted at 20 cents per pound as compared to the December low of 10 cents and a March I 5, 1933, price of 13 cents. Eggs have advanced 2 cents in recent weeks to I 5.½ cents per dozen and are now 6 cents higher than a year ago. The into-storage movement of eggs at these prices is less rapid than at this time last year. Heavy hens are quoted at 12 cents per pound as against 7 cents in December and IO cents last March. New crop broilers are scarce with dea!ers offering premiums over present market quotations of 21 cents per pound. Last year at this time broilers were selling at 14 cents per pound. Code re'luirements fix the minimum price of day old chicks at $6.30 per hundred and charges for custom hatching at 2½ cents per egg. Hatcherymen report sales of baby chicks to March I 5 as unusually light and an accumulation of unsold chicks on hand. Market receipts of butter and eggs for the year t0 March 1 are about IO per cent lighter and of poultry 3 per cent less than in the like period last year. Cold Storage Holdings A reduction of 39,153,000 pounds in storage stocks of creamery butter featured the United States cold storage movement in February._ March I holdings of butter were still 25,262'.ooo pounds heavier than a year ago, or 13,655,000 pounds in excess of the five-year average for that date. Government purchases of butter for relief distribution totaled 48,059,437 pounds up to March I of which 43,945,033 pounds had been distributed leaving 4,II4,404 pounds held in storage on that date fo; Government account. The seasonal out-of-storage movement of cheese, beef, lamb and mutton, and poultry was also somewhat larger than a year ago or normally. February marked the end of the old and the beginning of the new storage season for eggs with holdings unimportant. ' The light February slaughter of hogs, largely attributed to the Government's pig slaughter campaign of last September, resulted in a comparatively small gain in storage stocks of all meats and lard for the month. Stocks of lard and all classes of meat were larger on March I than a year earlier but inventories of beef were 3.7, pork 8.1, and lamb and 'mutton 1.8 per cent below the March I five-year average. Holdings of pork were 73. 5 and poultry 1.3 per cent above the average. United States cold storage holdings as reported by the Bureau of Agricultural Economics, United States Department of Agriculture: •March I Feb. I March I March I 1934 1934 1933 5-Yr.Av. Beef, lbs.__________ 65,308 72,948 36,015 67,823 Pork, lbs ..........· - - - - - · · . . . . 735,903 730,404 609,321 801,086 Lamb and mutton, lbs....................... 3,083 4,183 1,683 3,140 Poultry, l b s _ _ _ _ _ _ _ _ 101,790 120,177 88,675 100,509 ••Turkeys, lbs ....... _ _ _ _ _ _ 19,121 19,941 15,744 13,402 Miscellaneous meats, lbs____ 65,803 71,359 45,919 78,673 Lard, lbs .................. _ _ _ _ _ 177,56o 168,756 58,182 101,36o Eggs, cases ....... _ _ _ _ _ _ _ 90 50 163 185 Eggs, frozen (case equivalent).......... 1,135 1,-426 1,156 1,-461 Butter, creamery, lbs___ 36,842 75,995 u,580 13,187 Cheese, all varieties, lbs..................... 67,188 78,789 55,731 63,447 •subject to revision. ••Included in Poultry. (ooo omitted). NOTE: Figures do not include" Dry Salt Rough Sides" held for the account of the Government under the Emergency Hog Control Program but do include meats held for the Federal Surplus Relief Corporation. 7 THE MONTHLY REVIEW Petroleum February production of crude oil in this District, as estimated from the weekly reports of the American Petroleum Institute, totaled 18,024,000 barrels. According to reports of the Bureau of Mines, Department of Commerce, the January flow totaled 20,940,000 barrels and the February, 1933, output totaled 17,582,000 barrels. On a daily average basis, February production declined 4.6 per cent for the month and increased 2.5 per cent for the year. Production again exceeded the allowables set by the Federal Oil Administration, the overage amounting to 14,900 barrels per day. As the season of increased consumption approaches the daily average allowable oil production in the United States was increased 99,800 barrels and of this District 16,100 barrels, effective March 1. Allowables in effect since J anuary 1 were 2,183,000 barrels for the nation and 629,000 barrels for the District. Present daily allowables are as follows: Oklahoma, 456,000; Kansas, 112,300; Wyoming, 29,600; Colorado, 2,500; New Mexico, 44,300; Tenth District, 645,100; and the United States, 2,282,800 barrels. Gross and daily average production of crude oil in the United States and the five oil producing states of this Dristict: GROSS PRODUCTION *Feb. 1934 Barrels Oklahoma..•....... _ _ __ 12,852,000 Kansas .... _ _ __ _ __ 3,095,000 Wyoming.................... _ _ .....• 839,000 Colorado·---···· ... _ _ _ __ 76,000 1,162,000 New Mexico·----·- - - - - Jan.1934 Barrels 15,218,000 3,407,000 909,ooo 87,000 1,319,000 Feb. 1933 Barrels 12,810,000 2,806,000 868,ooo 74,ooo 1,024,000 Total five states.....· - - - 18,024,000 20,940,000 Total United States .. _ _ __ 62,694,000 71;; 96,000 DAILY AVERAGE PRODUCTION *Feb. 1934 Jan. 1934 Barrels Barrels Oklahoma.--·········- - - - 460,000 491,000 Kansas .... _ _ _ __ _ 110,000 110,000 30,000 29,000 Wyoming ...·-·········-·············-····· 3,000 3,000 Colorado...--······· - - - 41,000 42,000 N cw :Mexico.---···················........ 17,582,000 61,029,000 Total five states .. _ _ _ _ _ 644,000 Total United States____ 2,239,000 •Estimated, American Petroleum Institute. 675,000 2,321,000 Feb. 1933 Barrels 458,000 100,000 31,000 3,000 37,000 1>29,000 2,180,000 There has been no change in mid-continent crude oil prices since September 29, 1933. Quotations range, on a gravity basis, from 76 cents to $1.08 per barrel. Refinery and natural gasoline prices sagged during the month and furnace oils were weak but most other products held steady. A general increase in field work is reported with several new pools discovered. Refinery activity as of March 1 was about the same as one month earlier, but the daily average runs of crude oil to mid-continent stills were larger than for any like date since) 930. Zinc and ~Lead Shipments of zinc ore from mines in Oklahoma, Kansas, and Missouri, during the four weeks' period ended March 3,'lt, exceeded output and were 0.5 per cent larger than in the preceding four weeks and 10.7 per cent larger than in the corresponding four weeks of last year. Lead ore shipments, although showing a gain of 25. 8 per cent over the total for the four weeks ended February 3, were 20.9 per cent less than in the four weeks ended March 4, 1933. As ore prices were much better than a year ago, the value of shipments was substantially greater. Mines which were voluntarily closed a part of the month to restrict production are now operating. Cold weather the final week of the month also retarded operations. Shipments of zinc ore and lead ore from the Tri-state district: Oklahom~------Kansas ..... _ _ _ _ _ _ __ Missouri ................. _ _ __ Zrnc ORE Tons Value 14,188 '$419,394 7,385 218,160 339 9,916 Tons 1,107 681 43 Value '$ 47,047 28,942 1,828 4 4 4 9 9 21 ,912 1, 647,470 21,794 549,688 19,793 322,215 47,552 1,306,769 57,835 999,804 1,831 t,455 2,314 3,701 4,731 $ 77,817 Weeks Weeks Weeks Weeks ended endc:d ended ended Weeks ended Mar. 3, 1934._____ Feb. 3, 1934.......... Mar. 4, 1933·----· Mar. 3, 1934···---· Mar. 4, 1933·---- · LEAD ORE 61,837 74,048 158,744 151,391 After advancing '/,2 per ton the forepart of February, zinc ore closed steady at $30 as against $17 last year. Lead ore remained unchanged at $42.50 per ton, $10 per ton higher than a year ago. Bituminous Coal Declining seasonally at about the usual ratio, the output of soft coal at mines in the District is established from weekly reports to the Bureau of Mines at 1,507,000 tons in February as compared to 1,808,000 tons in January. February production declined 17.3 per cent as compared to a year ago and, with the exception of 1,465,000 tons mined in February, 1931, was the lightest for the month in many years. The production figures follow: Colorado Kansas and Missouri ..... -······-· New Mexico Oklahom Wyoming •Feb. 1934 Tons 450,000 526,000 91,000 123,000 317,000 Jan. 1934 Tons 536,000 605,000 130,000 161,000 376,000 Feb. 1933 Tons 614,000 618,000 II8,ooo 143,000 329,000 Total six states.. _ _ __ _ 1,507,000 1,808,000 1,822,000 Total United States.·-······-········ 31,950,000 32,916,000 17,134,000 •Estimated from the weekly reports of the United States Bureau of Mines. Cement Output of finished Portland cement at mills in the Tenth District declined seasonally in February but was the largest for the month since 1931. February shipments were also the heaviest in three years. Month-end stocks were lower than on any like date since 1927. Production, shipments, and stocks of finished Portland cement as reported by the United States Bureau of Mines, Department of Commerce, in thousands of barrels: TENTH DI STRICT Production Shipments February 1934 348 404 January 1934 487 434 February 1933 195 307 UNITED STATES Stocks Product:on Shipments Stocks 2,045 4,168 2,95'.!. 20,763 2,101 3,779 3,778 19,547 2,074 2,777 2,279 21,125 8 THE MONTHLY REVIEW Business Conditions in the United States By the Federal Reserve Board PC!tCCNT 0 1'<0 INDUSTRIAL PRODUCTION 1l0 120 1JO _.A. 120 \ 110 110 1~ 100 \ ,0 80 "\... 70 \. 60 50 1930 Jf929 1931 100 I\ I\ I V '-V'\ 90 80' -/"" v 1932 10 60 ·1933 so 1934- Index number ofindustrial production, adjusted for seasonal variation. Latest figure, February, 81. PE•~ FACTORY EMPLOYMENT AHO PAYROLLS 1·~•~ 'C., 110 no ,0 100 90 ~ eo 10 /\,.,I \~[mploymcnt 'JO 70 IO 60 ~ 50 40 "° • 1ffl 1930 19'1 1932. Latest figures, Feb- ruary, employment, 74.7; payrolls, 59.2. P£RCUf1 I 20 ttllCVIT 120 WHOLESALE PRICES 110 I 10 100 100 ,0 ~~ " '- IO 'lO 60 50 1929 1930 90 80 .,,.. ~ 1932 1931 70 / 60 193,3 PRODUCTION AND EMPLOYMENT: Output of manufactures and minerals, as measured by the Board's seasonally adjusted index of industrial production, increased from 78 per cent of the 1923-1925 average in January to 81 per cent in February. The advance reflected chiefly increases of considerably more than the usual seasonal amount in the output of steel and automobiles, while activity at meat packing establishments declined. Activity at textile mills, which in January had increased from the low level prevailing at the end of the year, showed a further moderate increase in February, partly of seasonal character. In the first week of March, steel production showed a further increase and in the following two weeks remained unchanged. Factory employment and payrolls increased substantially between the middle of January and the middle of February to a level higher, on a seasonally adjusted basis, than at any other time since the summer of 1931. Working forces on railroads also showed an increase, while at mines there was little change in the volume of employment. The number on the payrolls of the Civil Works Administration declined from about 4,000,000 in January to about 2,900,000 in the week ending March 1. At automobile factories there was a large increase in the number employed to approximately the level prevailing four years ago. Substantial increases were reported also for the textile, clothing, shoe, and tobacco ·industries. JO 19Jlt 19JJ Indexes of factory employment and payrolls, without adjustment for seasonal variation. (1923-1925 average=100.) Volume of industrial activity increased in February for the third consecutive month and there was a considerable growth in factory employment and payrolls. Wholesale commodity prices, after advancing for two months, showed little change between the middle of February and the middle of March. 1931t so Index of United States Bureau of Labor Statistics. (1926-100.) By months 1929 to 1931; by weeks 1932 to date. L:itest figure a for week ending March 17. a.u.lONs oroouMs . 7 Value of construction contracts awarded, as reported by the F. W. Dodge Corporation, showed a decline in February, followed by an increase in the first half of March. The total volume indicated for the first quarter is somewhat smaller than in the last quarter of 1933 but considerably larger than in the first quarters of 1932 and 1933. DISTRIBUTION: Freight traffic increased seasonally during February and the early part of March. Dollar volume of department store sales, on a daily average basis, showed little change in February. DOLLAR EXCHANGE: The foreign exchange value of the dollar in relation to gold currency declined in the second week of February to within two per cent of its new parity and in the latter part of February and the first three weeks of March showed a further slight decline. COMMODITY PRICES: Wholesale prices of commodities showed little change from the middle of February to the middle of March after a considerable increase earlier in the year. The index of the Bureau of Labor Statistics for the week ending March 17 was at 73.7 per cent of the 1926 average compared with 73.8 per cent the week before and 72.4 per cent at the end of January. BANK CREDIT: Between the middle of February and the third week of March, imports of gold from abroad resulted in a growth of about $550,000,000 in the country monetary gold stock. Funds arising from these imports of gold and from expenditures by the Treasury of about $140,000,000 of its cash and deposits with the Federal reserve banks were for the most part added to the reserves of member banks, which consequently increased by $600,000,000 during the four week period. At the close of the period member bank reserves were nearly $1,500,000,000 in excess of legal requirements. Total deposits of reporting member banks increased by about $1,000,000,000 between the middle of February and the middle of March, reflecting the imports of gold, purchases by the banks of United States Government and other securities, and a growth of bankers' balances. I------+-------+---~ z 1932 1933 1931+ Wednesday figures for reporting member banks in 90 leading cities. Latest figures arc for March 14c During March money rates in the open market declined further. Rates on 90-day bankers' acceptances were reduced from ½percent to ¼ per cent, and rates on prime commercial paper were reduced by ¼ per cent to a range of 1¼ per cent. Yields on United States Government securities also declined considerably. On March 16, the Federal Reserve Bank of Minneapolis reduced its discount rate from 3½ to 3 per cent.
@FedFRASER