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THE MONTHLY REVIEW Of Agricultural, Industrial, Trade and Financial Conditions in the Tenth Federal Reserve District FEDERAL Vol. 21 RESERVE BANK KANSAS CITY, E NERAL business activity in the Tenth Federal Reserve . District during February continued at a level somewhat higher than a year ago, as indicated by reports showing increases of 9.3 per cent in debits by banks to individual accounts, 4 per cent in retail trade at department stores, 0.3 per cent in wholesale trade, 28.4 per cent in retail lumber sales, and 23.4 per cent in building operations, with business failures remaining at a low level. Recessional tendencies compared to January were attributable in part to seasonal influences and to the continuance of cold weather throughout the greater part of February. The production of flour, crude petroleum, and bituminous coal was above the average for the month during the past ten years and exceeded production a year ago. Shipments of zinc ore were smaller than in February, 1935, but there was a substantial increase in shipments of lead ore. Packers' purchases of live stock indicated a slight decline in the slaughter of calves and considerable increases in the slaughter of cattle and sheep, with a slight increase in the slaughter of hogs, purchases of which were in only about half the normal volume. Receipts of all classes of grain at the five principal markets in the District continued heavier than a year ago but were generally below the normal volume, with receipts of wheat equal to 26.9 per cent, corn 34.7 per cent, oats 87.9 per cent, rye 35.7 per cent, and kafir 20.2 per cent of the ten-year average for the month. Marketings of cattle, hogs, and sheep increased compared to February, 1935, while marketings of calves decreased. Receipts at the six principal live stock markets in the District were near the normal volume for cattle and calves but somewhat below the ten-year average for sheep, with hog receipts at a continued low level. Hog and sheep prices were above a year ago, but cattle prices showed a slight decline. Live stock on western ranges came through the severe weather of February in fairly good condition and death losses were light. With the return of milder weather in the closing week of February, spring farming operations were under way in the southern part of the District and good progress in soil preparation and the planting of spring crops was made <luring the forepart of March. Farmers' intentions to plant indicated as of March I a general increase in crop acreages for harvest in 1936. Winter wheat was reported in fair to good condition in the eastern third of the District, but moisture deficiencies continued in western and southwestern areas. G Mo., OF APRIL KANSAS 1. 1936 CITY No. 4 BUSINESS IN THE TENTH FEDERAL RESERVE DISTRICT Percentages of Increase, or Decrease (-), for February 1936 over January 1936 and February 1935 and for the first two months of 1936 over the like period in 1935. 2 Mos. 1936 February 1936 compared to compared to Banking Jan. 1936 Feb. 1935 2 Mos. 1935 13.2 Payments by check, 2.9 cities ...........·-····- - 8.1 9.3 Federal Reserve Bank check collections.. -14.0 6.3 9.3 Business failures, number.... _ _ _ _ -18.4 Even 15.6 Business failures, liabilities____ -60.'2 -14.4 38.2 . Loans, 52. member bank~---- 3.2. 8.o Investments, 52. member banks................ o.6 - '2.6 Adjusted dem. deps., 52. member banks.. - '2.o 9.4 Time deposits, 52 member banks·-··········· o.'2 0.7 Savings deposits, 45 selected banks.--····· o.6 4.5 Savings accounts, 45 selected banks........ Even 1.2 Distribution Wholesalers' sales, 5 lines combined ........ -10.7 0.3 2.8 Retailers' sales, 32 department stores ...... Lumber sales, 158 retail yards .................. -24.8 Life insurance, writte...__ _ _ _ _ __ - 3.6 Construction 2 3-4 Building contracts awarded, value·-··-····· -59.9 Residential contracts awarded, value...... -31.2 39.7 Building permits in 17 cities, value.......... 30.4 Production Flour_ _ _ _ _ _ _ _ __ - 2.0 1.2 3.2 Crude petroleum. _ _ _ _ _ _ __ - 8.6 5.5 5-4 Soft coal........................................................ 13.1 40.8 72..5 -10.0 Zinc ore (shipped) Tri-State district........ -15.5 9.2 Lead ore (shipped) Tri-State district..__ 117.1 110.9 23.1 Cemen,.____________ 1.9 10.5 - 1.8 Grain receipts, 5 markets Whea,...__ _ _ _ _ _ _._ _ __ 45.1 79.9 1.8 58.1 Corn ...._ -_ -_ -_ -_ Oat_,_ ____ 59.3 57.8 Live stock receipts, 6 markets Cattle.. _ _ _ _ _ _ _ __ -23.9 2.7 -4.3 Calve._,____ _ _ _ _ _ _ _ _ __ -30.8 -20.9 -19.1 1.6 1 3•7 H o g s . · - - - - - · - - - - - - - -25.2 15.6 14.6 5.3 Sheep.. - · · - - - - - - - - - - Horses and mules...... _ _ __ -14.6 -35.9 -25.1 Meat packing, 6 markets Cattle..................... _ _ _ _ _ _ __ -16.3 38.5 14.1 -21 .7 -11.0 - 3.7 Calves·-····················----28.0 1,2 1 3·9 Hogs ........ - - - - - - - Sheep ..................... _ _ _ _ _ _ __ - 2.5 26.6 24.2 Stocker and feeder shipments, 4 markets Cattle .. _ _ _ _ _ _ _ _ _ __ -23.0 -55.4 -44.7 Calve.,__ _ _ _ _ _ _ __ -85.6 -84.8 -41.0 Hogs .. _ _ _ _ _ _ _ __ -60.0 -4 2.7 -41.9 Sheep ...... _ _ _ _ _ _ _ _ _ _ __ -32.0 -18.8 -32..8 guaranteed by the Government and a decrease in holdings of other securities. Loans and discounts on March 4 were 8 per l\1ember Bank Operations cent larger and investments 2.6 per cent smaller than on March Loans and discounts of fifty-two reporting member banks in 6, 1935. Reserves with the Federal Reserve Bank, which had the Tenth District decreased further during the four weeks increased during January, declined somewhat from February ended March 4, while investments increased slightly, following 5 to March 4 but were 6.4 per cent greater than a year ago. a decline in J anuary. There was an increase in holdings of Adjusted demand deposits and United States Government United States Government obligations and of obligations deposits decreased further during the four weeks ended March This Copy Released_For Publication In Afternoon Newspapen, March 30. THE MONTHLY REVIEW 2 4, while inter-bank deposits of domestic banks continued to Bank Debits increase and time ·· deposits remained relatively unchanged. Adjusted demand deposits on March 4 were 9.4 per cent.~and inter-bank deposits 14.2 per cent greater than on March 6, 1935. The principal resource and liability items of the consolidated weekly condition statements of the fifty-two reporting banks, for the_three _dates of comparison: -! . ~ , ·, · r: ,.·. '..;_•"' \ r, · 1~·, Mar. 4, 1936 Feb. 5, 1936 Mar. 6, 1935 Debits by banks to individual accounts in twenty-nine reporting cities in the District during the five weeks ended March 4 declined 8.1 per cent from the preceding five weeks but were 9.3 per cent greater than dming the corresponding five weeks a year ago. Debits for the first nine weeks of 1936 exceeded the total for the first nine weeks of 1935 by 13.2 per cent. Loans and investments-total.. Loans and discounts-totaL..... Secured by stocks and bonds All other loans and discounts lnvestments-tota..___ __ U. S. securities direct·--········· Obligations fully guaranteed by the U. S. Government.. Other securitie.,___ _ __ Reserve with F. R. Bank......... . Demand deposits-adjusted ..... . Time deposits ...... _ _ _ __ U.S. Government deposits....... . Inter-bank deposits: Domestic banks·---················· Foreign banks.............. ·-········· $598,n9,ooo 215,316,000 47,862,000 167,454,000 382,803,000 221,202,000 $602,937,000 222,464,000 47,716,000 174,748,000 380,473,000 217,6o5,ooo $592,397,000 45,148,000 u6,453,ooo l 10,343,000 433,048,000 144,723,000 II,956,000 43,957,000 n8,9n,ooo l l 6,989,000 442,074,000 144,409,000 13,704,000 21,544,000 l 19,568,000 103,675,000 395,737,000 143,700,000 21,925,000 374,7 27,000 102,000 367,947,000 136,000 328,064,000 111,000 199,296,000 53,715,000 145,581,000 393,101,000 251,989,000 Reserve Bank Operations The small holdings of bills discounted decreased further during the four weeks ended March 4 and holdings of bills purchased were relatively unchanged. Industrial advances increased slightly, following a decline in January, and were substantially larger than a year ago. Holdings of United States Government securities were unchanged from February 5 to March 4 but were 16.3 pei- cent greater than on March 6, 1935· Federal Reserve note circulation, which had declined in January, increased 2.4 per cent during the four weeks ended March 4 and there was an increase of 20.6 per cent compared to March 6, 193 5. Member banks' reserve deposits decreased 2..7 per cent, following an increase dming January, and were only slightly above a year ago. The principal resource and liability items of the weekly condition statements of the Federal Reserve Bank of Kansas City and branches, for the three dates of comparison: Mar. 4, 1936 Feb. 5, 1936 Mar. 6, 1935 Total reserves.............................. $218,120,576 $218,348,096 Bills discounted·--······················· 261,968 522,508 Bills purchased............................ 132,904 132,858 Industrial advances.................... 1,131,533 1,n4,468 U.S. securities............................ 106,844,200 106,844,200 Total bills and securities............ 108,551,605 108,795,034 Total resources............................ 363,083,299 361,262,981 F. R. notes in circulation.......... 143,051,325 139,645,195 Member banks' reserve deposits 175,103,835 179,915,451 The discount rate of the Federal Reserve Bank of Kansas City, of paper and all maturities, remains unchanged at 2 per cent. $215,284,686 138,528 148,603 639,246 91,844,250 92,770,627 341,155,243 n8,628,225 173,367,366 on all classes Reserve Bank Check Collections The dollar volume of check collections through this bank and branches during February was seasonally smaller than in January:._but exceeded the dollar volume in February, 1935, by 6.3 per cent. Check collections for the first two months of 19.36 were 9.3 per cent larger in dollar volume and 7.1 per cent larger in the number of items handled than in the first two months of 1935. Check collections through the Federal Rese1ve Bank of Kansas City and branches at Omaha, Denver, and Oklahoma City: ITEMS February......... . January............ Two months...... 1936 5,116,930 5,792,615 lo,909,545 1935 4,91o,336 5, 278,4l4 10,188,750 AMOUNT 1936 $ 768,936,000 894,412,000 l ,66 3,348,000 1 935 $ 723, 156,000 799, 176,000 1,522,332,000 PAYMENTS BY CHECK FIVE WEEKS ENDED Mar. 6, 1935 Mar. 4, 1936 10,063,000 12,563,000 $ Albuquerque, N. M,·--··············· $ Atchison, Kans 3,702,000 3,720,000 Bartlesville, Okla .. - ..................... 26,078,000 26,623,000 4,537,000 5,352,000 Casper, \Vyo.·--··············· ........... 6,9.p,000 Cheyenne, Wyo........................... 7,922,000 13,247,000 15,164,000 Colorado Springs, Colo,.--········· Denver, Colo ..............,................ 171,268,000 147,241,000 *Emporia, Kans ........................... 3,748,ooo Enid, Okla ................................... 8,782,000 9,164,000 2,612,000 2,418,000 Fremont, Nebr.. __ ······················· Grand Junction, Colo............. :... 2,551,000 2,955,000 Guthrie, Okla .. - ........................... 1,890,000 1,843,000 Hutchinson, Kans ....................... 14,032,000 II,733,000 Independence, Kans ................... 2,386,000 2,695,000 Joplin, Mo ................................... 10,085,000 8,977,000 Kansas City, Kans ....... .............. 12,530,000 11,392,000 Kansas City, Mo ......................... 301,580,00::, 304,147,000 Lawrence, Kans ........................... 3,683,000 3,989,ooo Lincoln, Nebr............................... 29,066,000 26,383,000 Muskogee, Okla ........................... 6,900,000 8,350,000 Oklahoma City, Okla ................ 86,101,000 98,670,000 Okmulgee, Okla ........................... 2,885,000 3,348,000 Omaha, Nebr............................... 137,76o,ooo l 53,069,000 Pittsburg, Kans ........................... 3,984,000 4,457,000 Pueblo, Colo .._............................. 13,534,000 13,214,000 Salina, Kans ................................. 8,7.30,000 8,957,ooo St. Joseph, Mo ............................. 31,840,000 29,046,000 19,686,000 18,015,000 Topeka, Kans ...·-························· 1 33,597,000 107,850,000 Tulsa, Okla.·-······························· Wichita, Kans ....... ..................... 46,II2,ooo 51,594,000 Total 29 cities, 5 weeks ............ Total 29 cities, 9 weeks ............ U. S. 272 cities, 5 weeks ............ U. S. 272 cities, 9 weeks ............ *Not included in totals. 1, l, l 57,850,000 2, I 60,976,000 41,642,147,000 76,659,893,000 '$ 1,059,164,000 1,908,157,000 35,956,640,000 65,328,675,000 Per cent Change 24.8 0.5 2.1 18.0 14.I 14•5 16.3 4.3 8.o 15.8 - 2.5 -16.4 13.0 12.3 10.0 0.9 8.3 - 9.2 21.0 14.6 16.0 I I. l I 1.9 2.4 2.6 9.6 9.3 23·9 11.9 9.3 13.2 l 5.8 17·3 Life Insurance Sales of new paid-for ordinary life insurance in the seven states in the District decreased slightly from January to February and were 9.7 per cent under sales in February, 1935. Sales for the first two months of 1936 decreased 14.2 per cent compared to sales for the first two months of 1935. Life insurance sales reported to the Life Insurance Sales Research Bureau by companies representing 90 per cent of the total legal reserve ordinary life insurance outstanding in the United States: Feb. 1936 Jan. 1936 Colorado ... - .................................. . Kansas ......................................... . rvlissouri ....................................... . ebraska ..................................... . rew Mexico.···-··························· Oklahoma... _................................ . \Vyon1ing .. ................................... . $ 3,900,000 $ 3,921,000 4,375,000 12,966,000 3,300,000 993,000 758,000 4,525,000 14,120,000 4,155,oco 611,000 5,39 1, 000 767,000 Seven states................................. . United States..·--················· ....... $ 32,297,000 $ 33,490,000 $ 35,764,000 46o,463,ooo 479,018,000 533,784,ooo 6,005,000 Feb. 1935 1, 4,106,000 5,177,000 15,304,000 4,124,000 768,000 5,590,000 695,000 Business Failures The amount of liabilities involved in commercial failures in the Tenth District during February was the smallest for the month in seventeen years of record, and the number of failures equaled the ~otal a year ago, when the number was the smallest for February since 1920. Owing to increases in January over 3 THE MONTHLY REVIEW Stores Reporting Kansas City.... 4 Denver.............. 4 Oklahoma City 3 Tulsa ................ 3 Wichita............ 3 Other cities...... 1 5 RETAIL TRADE AT 32 DEPARTMENT STORES IN THE TENTH FEDERAL RESERVE DISTRICT AMOUNTS COLLECTED SALES STOCKS (RETAIL) ACCOUNTS RECEIVABLE Feb. 1936 Feb. 1936 Year 1936 Feb. 29, 1936 STOCK TURNOVER Feb. 29, 1936 compared to compared to compared to compared to February Year compared to Feb. 1935 Year 1935 Jan.31,1936 Feb.28,1935 1936 1935 1936 1935 Jan.31,1936 Feb.28,1935 Jan. 1936 Feb. 1935 -24.0 15.3 8.8 7.0 8.4 -10.4 .30 .24 .57 .47 - 8.3 19.4 -18.8 11.7 - I.6 2.3 9•7 IO.I .26 .29 •53 •57 - 9•3 1.7 -26.1 7.9 19.0 12.I 13.1 3.4 ,37 .33 .69 .64 - 8.8 II.9 1,p 14.6 12.2 - 1.2 .37 .33 .69 .64 - 8.6 8.2 -38.9 13.3 -25.9 15.3 2.9 6.5 17.9 5.9 •26 •27 ·5 1 ·5 1 - 3.3 6.7 -20.7 8.3 - 2.7 2.1 17.7 0.3 .23 .23 .47 .43 -10.7 3.5 Total... ___ ········· 32 4.0 7.0 12.3 0.7 .28 .27 .55 .52 NOTE: Percentage of collections in February on open accounts January 31, all stores reporting 43.8. the preceding year, both the number of failures and the amount of liabilities involved for the first two months of 1936 increased as compared to the first two months of 1935. Business failures in the Tenth District and the United States, reported by Dun and Bradstreet, Incorporated: TE NTH DISTRICT Number Liabilities February 1936·-····· ·············· 40 'f,173,000 January 1936·--··················· 49 435,000 February 1935·-··················· 40 202,000 Two months 1936................ 89 608,000 Two months 1935................ 77 440,000 UNITED STATES Number Liabilities 856 i14,089,ooo 1,077 18,104,000 956 15,217,000 I ,933 32,193,000 2,Io2 29,820,000 Savings Savings deposits at forty-five selected banks in leading cities of the District increased slightly from February I to March I and were 4.5 per cent greater than on March 1, 1935. The number of savings accounts showed little change during Febrnary and an increase of 1.2 per cent during the year. Savings accounts and savings deposits reported by the forty-five banks: March 1, 1936.......................................... February 1, 1936..·--······························· March 1, 1935-............................ ·-·········· Savings Accounts 408,001 407,928 403,284 Savings Deposits $124,946,701 124,242,023 n9,563,326 Trade RETAIL: February department store sales, as reflected by the dollar volume of thirty-two reporting stores in leading cities of the District, increased 2.8 per cent over January sales and were 4 per cent greater than in February, 1935. Sales for the first two months of 1936 exceeded sales during the first two months of 1935 by 7 per cent. Stocks of merchandise increased 12.3 per cent from January 31 to February 29 but were only slightly larger than on February 28, 1935. Collections on open accounts during February averaged 43.8 per cent of accounts receivable at the close of the preceding month, compared to 47.8 per cent during January and 41.9 per cent during February, 1935. Installment collections in February averaged 15.9 per cent compared to the January ratio of I 5.6 per cent and the February, 1935, ratio of 14.8 per cent. WHOLESALE: Wholesale distribution, as reflected by the combined dollar volume of five representative reporting lines, increased 0.3 per cent compared to February, 1935, while there was a decrease of 10.7 per cent compared to January, somewhat more than the usual seasonal amount in recent years. Cumula- Stores Reporting Dry goods....... ........ ........ 5 Groceries.......................... 5 Hardware·-···········............ 8 Furniture._...................... 4 Drugs ............. ·-··· ·- ... .... 7 - 9.0 7.0 -23.5 Collections same month last year 41.9. 11.5 tive sales for the first two months of 1936 increased 4.8 per cent compared to sales for the first two months of 1935. By individual lines, there were cumulative sales increases of 2.3 per cent for groceries, 6 per cent for hardware, 6.9 per cent for furniture, and 10.6 per cent for drugs, while sales of dry goods decreased 5.1 per cent compared to sales for the first two months last year. Stocks of merchandise of the five lines combined increased 4.9 per cent from January 31 to February 29 and were 2.9 per cent larger than on February 28, 1935. There was an increase in stocks for each of the five lines during the month and for hardware, furniture, and drugs during the year, while stocks of dry goods and groceries were smaller than a year ago. Lumber Retail sales of lumber at I 58 reporting yards in the Tenth District decreased 24.8 per cent in board feet during February, but there was an increase of 28.4 per cent compared to February, 1935, and of 47. 5 per cent for the first two months of 1936 compared to the first two months of last year. Sales of all materials in dollars showed a similar trend. Stocks of lumber at the close of February were 7.6 per cent greater than one month earlier and 23.8 per cent greater than one year earlier. There was little change in amounts outstanding from January 31 to February 29, but there was an increase compared to a year ago. Collections during February averaged 37.2 per cent of amounts outstanding at the close of the· preceding month, 43.9 per cent during January, and 32.7 per cent during February, 1935. February business at the 158 reporting yards: February 1936 compared to January 1936 February 1935 Sales of lumber, board feet. ............................... -24.8 28.4 Sales of all materials, dollars_··-······················ -11.5 40.7 Stocks of lumber, board feeL_......................... 7.6 23.8 Outstandings, end of month.............................. - 0.4 30.1 The National Lumber Manufacturers Association reported that lumber production in the United States for the first nine weeks of 1936 was 35 per cent above production for the same period in 1935. Lumber shipments for the nine weeks increased 22 per cent and orders booked increased 19 per cent compared to a year ago. Building Building activity in the Tenth District during February increased 23 .4 per cent compared to a year ago, although the WHOLESALE TRADE I N THE TE TH FEDE RAL RESERVE DISTRICT St.LES OuTSTANDINGS AMOUNTS COLLECTED Feb. 1936 Feb. 29, 1936 Feb. 1936 compared to compared to compared to Jan. 1936 Feb. 1935 Jan. 31, 1936 Feb. 28, 1935 J an. 1936 Feb. 1935 - 14.7 - 8.9 - 3.2 - 5.8 - 9.1 4.2 -13.1 - 2.5 0.5 - 0.9 - 5.6 10.3 - 1.0 o.6 3.2 - 2.8 -13.2 4.5 -17.3 - 5•3 2.0 17.1 -IO. I 8.9 -II.I 7·9 - 2.4 2,4 - 5.1 13.9 STOCKS Feb. 29, 1936 compared to Jan. 31, 1936 Feb. 28, 1935 10.4 - 9.3 0.1 - 3.8 5.0 14.6 H 27.8 5.2 10.8 THE MONTHLY REVIEW 4 value of construction contracts awarded, according to statistics of the F. W. Dodge Corporation, represented only 45 per cent of the average volume for the month during the past nine years. Operations were restricted by the continued cold weather throughout the greater part of the month and were considerably under the levels of January. The value of construction contracts awarded during the first two months of 1936 increased 24.7 per cent compared to the first two months of 1935. The value of construction conttacts awarded, as reported by the F. W. Dodge Corporation: RESIDENTIAL TOTAL Tenth District United States Feb. 1936.... $1,141,505 $31,175,500 Jan. 1936...... 1,659,910 37,439,500 Feb. 1935...... 817,053 16,616,800 2 Mos. 1936.. 2,801,415 68,615,000 2 Mos. 1935.. 1,337,478 39,027,000 Tenth District $ 4,292,780 10,715,984 3,478,710 I 5,008,764 12,038,249 United States $142,050,200 204,792,800 75,083,500 346,843,000 174,857,400 Building departments in seventeen Tenth District cities issued fewer permits during February and the first two months of 1936 than were issued in the corresponding periods last year, but there were substantial increases in the amount of expenditures involved. The estimated construction cost for February was the highest for the month since 1931. BUILDING PERMITS IN TE TH DISTRICT CITIES PERMITS 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, Okla. _ _ _ __ St.Joseph, Mo _ _ _ _ __ Topeka, Kan...__ _ _ __ Tulsa, Oki...__ _ _ _ __ Wichita, Kans. _ _ _ _ __ Total 17 cities, February·--······· Two month..__ _ _ _ __ 1936 57 16 27 173 9 13 117 27 92 12 18 7 1935 46 31 23 248 8 20 151 45 108 42 35 13 IO II 2 54 57 75 8 36 69 129 766 1,023 1,824 1,615 ESTIMATED COST 1 935 1936 $ 70,970 55,428 99.070 439,642 12,150 44,815 199,400 6,500 1,271,838 292,745 5,290 l4,510 10,925 4,200 628,570 149,625 118,839 $3,4 24,517 6,051,261 $ 44,674 38,003 10,045 290,229 6,250 9,145 103,600 21,796 138,080 74, 235 87,62.2 11,625 9,850 9,835 38,725 • 72,544 85,985 $1,052,243 1,963,576 Flour Milling Flour mill operations in the District were increased from 59.8 per cent of full-time capacity in January to 63.8 per cent in February, but production declined 2 per cent with two less working days. Production was 3.2 per cent above the average for the month during the past ten years and 3.2 per cent above production in February, 1935, when mills operated at 64.5 per cent of capacity but when there was one less working day. Production for the first two months of 1936 exceeded production in the same period last year by 1.2 per cent. Flour production at the principal milling centers of the District, as estimated from the weekly reports of southwestern mills to the Northwestern Miller: Atchiso•.___ _ _ _ _ __ Kansas City_ _ _ _ __ Salina_ _ _ _ _ _ _ _ __ Wichit _ _ _ _ _ _ __ Outsid _ _ _ _ _ _ __ Feb. 1936 Barrels 121,205 5°5,35° 141,387 146,859 983,476 Jan. 1936 Barrels 130,244 503,911 169,96o 142,404 990,782 Feb. 1935 Barrels 102,550 502,199 146,117 154,096 933,923 Tota.__________ 1,898,277 1,937,301 1,838,885 •united State.,______ 5,444,070 5,602,613 4,962,012 •Represents about 6o per cent of the total output in the United States. Flour sales in the southwest were stimulated somewhat in the second week of February by strength in the wheat market, and aggregate bookings were reported good for this season of the year. The majority of flour orders were for nearby shipment, indicative of the small stocks in the hands of buyers. Continued favorable shipping directions maintained production fully up to normal, and unfilled bookings were again reduced. Flour prices, following a decline in January, tended upward with the wheat market, and millfeed prices advanced until the closing week of the month, when inquiry narrowed with the arrival of milder weather. Grain 1\t1arketing Receipts of grain at the five principal markets of the District declined· during February as severe weather conditions continued to restrict marketings. Although heavier than in February, 1935, receipts of wheat represented only 26.9, corn 34.7, rye 35.7, and kafir 20.2 per cent of the ten-year average volume for the month, while receipts of oats were 87.9 per cent of the average volume and receipts of barley exceeded the average by 23.3 per cent. Marketings for the first two months of 1936 were substantially heavier than in the first two months of 1935. Receipts of grain at the five markets: Hutchinson ...... Kansas City·--· Omaha.............. St. Joseph·---··· Wichita·--········· Wheat Bushels 375,300 1,540,800 197,001 212,800 301,500 February 1936_ January 1936._ February 1935.. 2 Months 1936 2 Months 1935 2,627,401 4,795,775 1,810,250 7,423,176 4,126,464 Corn Bushels 3,75° 898,500 673,400 433,500 13,000 Oats Bushels 152,000 186,000 526,000 7,5 00 ------ 2,022,150 871,500 3,791,350 1,033,000 1,986,150 547,000 5,81.3,500 1,904,500 3,676,059 1,207,000 Rye Bushels Barley Bushels 19,600 4.J,'200 54,4oo 8,750 Kafir Bushels 6,500 70,000 20,800 19,600 42,300 7,400 61,900 13,300 106,350 255,950 7,700 362,300 12,500 97,300 124,200 70,400 221,500 121,200 Cash prices of wheat, corn, and barley advanced at the Kansas City market during February, while prices of rye and kafir declined, and oats was quoted unchanged. Wheat prices moved upward in response to light receipts and unfavorable crop reports, and the light corn supplies were in good demand from feeders during the period of cold weather. Cash grain prices at Kansas City: No. I hard,dk. wheat, bu, No. 2 mixed corn, bu ... _ No. 2 white oats, bu ....... No. 2 rye, bu ............·-···· No. 2 barley, bu.·---··· No. 2 white kafir, cwt.. _. Mar. 14 Feb. 29 Jan. 31 Mar. I f ~Feb. 28 Feb. 28 1936 1936 1934 1936 1935 1935 t,1.03½ $1.07¼ 1,1.05½ 1, .93½ 1,1.00 $ .81½ .64 .66½ .61½ .83½ .90 .44 .27½ .30 .30 .52½ .58½ .34½ .54½ .53½ .55 .75 .80½ .58 .47 ·49 .48 .76 .84 .44½ 1.06 I.IO I.II 2.01 2.12 .74 Agriculture The continuance of severely cold weather throughout the first three weeks of February kept farm activity at a minimum, but the return of mild weather in the closing week of the month enabled spring farming operations to get under way in the southern part of the District and good progress was made in plowing and in the planting of oats, barley, potatoes, and other crops during the forepart of March. Precipitation was below normal for February except m northern Nebraska and in the extreme western part of the District, and additional moisture was needed generally. Winter wheat was reported in fair to good condition in the eastern third of the District, but moisture deficiencies continued in western and southwestern areas, where additional soil blowing occurred. With the return of milder weather, winter wheat was greening in eastern Kansas and in northern Missouri. The damage to winter wheat from the low temperatures appeared to be less than was reported at the time the severe weather occurred. The peach crop suffered extensively from freezing, but reports indicated little or no damage to the apple crop. 5 THE MONTHLY REVIEW PRICES: The composite index of prices received by farmers for agricultural commodities remained unchanged from January 15 to February 15 at 109 per cent of the pre-war average, compared to 1 I I per cent on February 15, 1935. The index of prices paid by farmers was 122 per cent of the pre-war average, compared to 127 per cent a year ago, and the ratio of prices received to prices paid stood at 89 per cent of the pre-war average, reflecting a gain of two points in farm purchasing power during the year. PLANTING INTENTIONS: The Department of Agriculture report on acreage intentions as of March I indicated a general increase in crop acreages for harvest in I 936, assuming that relations between growers' intentions and harvested acreages would be similar to those which have prevailed in the past. The acreage intentions have been interpreted to allow for usual difficulties at planting time and usual abandonment but do not allow for the effects of the soil conservation program, since farmers' plans, for the most part, had been reported to the Department prior to the enactment of the Soil Conservation Act. Commenting on the acreages, the Department stated: "While the tendency to increase acreage is rather general, about two-thirds of the total acreage expansion this year is expected to be in the Great Plains States where the continuation of the 1934 drought into the spring of 1935 caused the loss of much of the winter wheat seeded for harvest in 1935 and also prevented the seeding of the usual acreage of spring grain. Soil moisture is still seriously lacking in that portion of this area which extends from central Kansas into southeastern Wyoming and from this line southward through west Texas, and there is still considerable uncertainty as to the acreage of crops that will finally be harvested in that area." The indicated I 936 acreage of crops for harvest, the harvested acreage in 1935, and the five-year, 1928 to 1932, average harvested acreage in the seven states of the Tenth District and the United States, reported by the Department of Agriculture, thousands omitted: UNITED STATES SEVEN STATES Acreage Acreage Indicated Harvested Harvested Indicated Harvested Harvested 1935 1928-32 1928-32 1936 1936 1935 102,768 20,687 28,244 92,727 Corn .... ------·-·· 24,336 98,775 18,826 20,431 Spring wheat 22,440 702 993 942 Oats ______________ 39,887 7,063 39,785 39,7 14 7,7 27 7,3°5 Barley _______ 12,739 2,016 2,061 12,858 13,017 1,590 Flaxseed ________ 2,757 2,359 61 2,071 70 59 Dry beans .. _ 1,795 1,76o 1,843 623 637 57° Potatoes ____ 3,16o 3,271 366 3, 243 389 _ 373 Swt. potatoes 778 30 32 32 746 729 Gr. sorghums 10,290 3,116 10,470 6,855 4,800 4,805 Tame hay____ 52,026 8,501 7,692 53,312 7,922 53,7 25 Tobacco _______ 1,602 6 1,874 6 1,458 5 Soybeans _____ 5,2u 2,635 4,624 446 477 42 9 Live Stock MARKETINGS: Receipts of cattle, calves, and hogs, including direct shipments to packers, decreased at the six principal live stock markets of the District during February, Kansas CitY·-··-·--···--· Omaha _______ ··-··-·-··--·-··· St. Joseph __________________ Denver--·--------·-·-··------· Oklahoma CitY--·-·---· Wichita ______________________ Cattle 78,605 98,301 25,007 27,213 36,554 22,398 while marketings of sheep increased. Receipts were larger than a year ago with the exception of calves but were below the ten-year average for the month, marketings of cattle declining 6.8, calves 2.2, hogs 52.7, and sheep 12.1 per cent from the normal volume. Cumulative receipts for the first two months of 1936 showed an increase in hog and sheep numbers and a decrease in the number of cattle and calves compared to the first two months of 1935. The six markets received II,531 horses and mules in February, or 20 per cent below the average number, compared to 13,509 head in January and 17,992 head in February, 1935. PRICES: Weather restrictions on receipts resulted in an increase of 10 to 25 cents in prices for slaughter hogs at the Kansas City market during February, but prices of stock pigs declined. Hogs sold up to a top of $10.75 during the month compared to a top of $9.10 in February, 1935. Prices of slaughter cattle weakened with a continued sluggish demand for dressed beef and a liberal marketing of short-fed steers despite adverse weather conditions and closed mostly 50 cents to $1.25 below final January levels. The February top for beef steers was $II.25 compared to $13.25 a year ago. Stocker and feeder cattle were in limited demand owing to the severe weather, and quotations closed the month mostly 25 cents lower. Lamb receipts consistently exceeded demand throughout the month and prices declined 65 to 75 cents, although quotations on slaughter ewes increased 50 to 6o cents. The lamb top in February was $10.75 compared to $8.75 a year ago. STOCKERS AND FEEDERS: The countryward movement of stocker and feeder live stock from four markets in the District declined during February and was smaller than a year ago, when there was an active demand for cattle and hogs. Shipments of cattle were 44.3, calves 85.7, hogs 72.7, and sheep 49.2 per cent below the average volume during the past ten years. Shipments for the first two months of 1936 were below shipments for the same period last year. The Department of Agriculture estimated that there were 915,000 lambs left in feed lots in the Northern Colorado, Arkansas Valley, and Scottsbluff feeding areas on March 7 compared to 920,000 head a year ago and 940,000 head two years ago. Shipments from these areas since January I totaled 3,168 cars compared to 2,440 cars in the same period last year and 2,466 cars two years ago. Reports to the Department of Agriculture indicated that the early spring lamb crop in the United States is about 6 per cent larger than the early crop of 1935. Commenting on the early spring lamb crop in Corn Belt states, the Department said: "Weather during January and February was extremely severe and death losses of lambs dropped during this period were heavy. The season is generally late and early pasture will be poor. In Missouri, the principal early lambing state, conditions were very unfavorable during early lambing. Because of cold and snow ewes were closely confined and got little exercise and the mortality of lambs was rather high. Pastures are late and quality of hay and roughage available is generally poor." FEBRUARY MOVEMENT OF LIVE STOCK IN THE TENTH DISTRICT STOCKERS AND FEEDERS PURCHASED FOR SLAUGHTER RECEIPTS Cattle Calves Hogs Sheep Sheep Cattle Calves Hogs Sheep Hogs Calves 13, 259 18,838 1,761 104,239 46,302 14,815 *149,759 16,335 *127,893 75,689 797 188 128,025 121,844 65,151 94,800 95,688 6,109 7,644 174 5, 144 5,935 2,124 861 101,116 107 20,366 131,647 48,588 62,398 5,085 9,3 13 5,037 328 130 156,416 5,164 1,696 3,029 16,437 29,694 25,333 45,o99 3,473 10,374 24,868 25,261 28,932 8,383 5,215 5,9 27 14,112 2 20,248 14,025 n,748 18,978 4,872 4, 74 1,406 428,280 2,940 31,189 288,078 44,284 540,366 February 1936·-··--···· 33,77° January 1936________ 75,722 513,149 45,899 63,976 572,879 9,779 5, 133 378,389 61,087 46,401 9,264 467,498 280,509 421,571 7,345 February 1935------55,977 108,260 1,001,159 1,053,515 11,185 8,073 77,088 109,492 666,467 2 Months 1936.·-···-· t2 Months 1935 ____ 880,208 142,138 18,969 13,893 696,651 133,830 94,931 9 19,4°7 tRcceipts include Government purchases of cattle and *Includes 91,801 hogs shipped direct to packers' yards. 184,872 220,852 133,438 4°5,7 24 355,501 calves. 41,660 53,230 43,266 94,890 106,561 345,214 479,606 341,036 824,820 724,275 317,o66 325,248 250,429 642,314 517,167 6 THE MONTHLY REVIEW NUMBERS AND VALUE OF LIVE STOCK ON FARMS JANUARY I IN THE UNITED STATES AND THE SEVEN STATES WHOSE AREAS OR PARTS THEREOF COMPRISE THIS DISTRICT Reported by the United States Department of Agriculture, ooo omitted SEVEN STATES UNITED STATES FARM VALUE NUMBER FARM VALUE NUMBER 1935 1934 1935 1935 1936 1935 1934 1936 1936 1936 1934 1934 All cattle and calves .... 15,174 68,213 17,848 f,461,486 $252,054 $267,783 68,529 74,262 $2,325,586 .$1,385,948 $1,320,340 15,331 2 *Milk cows and heifers 26,236 790,386 729,856 154,866 25,622 87,426 3,781 89,637 3,894 7,0 59 1,260,193 4, 175 Swine, including pigs.... 13,3 27 58,621 6,809 88,631 539,561 246,196 239,541 7,251 39,004 4 2,541 49,399 33,953 60,200 Stock sheep and lambs 10,203 294,249 201,913 182,672 46,380 46,640 9,380 48,454 9,652 42,543 39,5°4 2,820 11,861 Horses and colts............ 12,052 1,126,400 913,870 805,994 2,656 204,562 165,819 11,637 2,75_8 147,867 Mules and mule colts .... 4,822 69,258 564,186 478,998 407,566 58,7n 55,601 4,685 7II 675 769 4,945 Total five species .......... 35, 136 35,261 *Included in all cattle and cah·es. 44,967 $884,137 $553,080 WESTER RANGES: Live stock on western ranges generally came through the severe weather of February in fairly good condition, with light death losses but with considerable shrinkage in northern sections. Heavy supplemental feeding was necessary in western Nebraska and in Wyoming. By March 1, ranges were reported open from southeastern W'yoming and central Jebraska through western Kansas and eastern Colorado southward. Supplies of feedstuffs were ample for prospective requirements, but range feed was short and the soil dry over much of the southwestern portion of the District and moisture was needed for spring feeds. LIVE STOCK ON FARMS: The number of swine on farms in the seven states of the District on January l, 1936, increased 6.5 per cent compared to January 1, 1935, while the numpers of all cattle and calves decreased 1 per cent, milk cows and heifers 2.9 per cent, stock sheep and lambs 2.8 per cent, horses and colts 3.7 per cent, and mules and mule colts 5.1 per cent. The number of 5heep and lambs on feed, not included in the number of stock sheep and lambs, showed an increase of 3.8 per cent, while for the United States as a whole there was a decrease of 5.4 per cent. The increase in swine numbers in the United States was slightly larger and the decrease in the numbers of other species slightly smaller than in this District. There was an increase in the value of each species of live stock during the year and the total value of all live stock on farms in the seven states increased 59.9 per cent compared to an increase in value for the United States of 50 per cent. WOOL: The Department of Agriculture reported that the production of wool in the United States in 1935 totaled 429,145,000 pounds, of which 363,145,000 pounds were shorn wool and 66,000,000 pounds were pulled wool. Production for the year 1934 totaled 429,536,000 pounds and during the years 1929 to 1933 averaged 419,000,000 pounds. The number of sheep shorn in 1935 was estimated at 45,451,000 head compared to 46,575,000 head in 1934 and the five-year average of 44,921,000 head. Meat Packing Packers' purchases at the six principal live stock markets in the District, direct shipmen ts of hogs included, were smaller during February than during January, but were larger than a year ago with the exception of calves. Purchases of cattle $560,154 173,456 170,856 crease in the slaughter of hogs compared to February, 1935. The slaughter of cattle was 18.2, calves 11.9, and sheep l 5.4 per cent above the ten-year average volume for the month, while the slaughter of hogs was 40.9 per cent below the average. Cumulative slaughter for all classes of meat animals during the first two months of 1936 was above the totals a year ago. Live stock slaughtered under Federal meat inspection in the United States, reported by the Bureau of Agricultural Economics from compilations of the Bureau of Animal Industry: Cattle Calves February 1936.................. 741,680 405,184 January 1936.................... 906,099 464,566 February 1935.................. 640,908 387,072 Two months 1936............ 1,647,779 869,750 Two months 1935............ 1,455,028 863,507 NOTE : Slaughter for Government relief purposes Hogs 2,319,096 3,427,799 2,408,827 5,746,895 5,456,360 Sheep 1,313,922 1,540,132 1,136,863 2,854,054 2,481,590 excluded. Cold Storage Holdings United States cold storage stocks of beef, poultry, miscellaneous meats, eggs, and butter decreased somewhat more than seasonally from February 1 to March 1, while the net withdrawal of lamb and mutton was of less than seasonal proportion and the withdrawal of cheese approximated the average amount. Stocks of pork and lard increased somewhat less than seasonally. Holdings of all commodities with the exception of frozen eggs, butter, and cheese were below holdings on March 1, 1935. Storage stocks of beef were 31.7 and cheese 24 per cent above the March 1 five-year average, while pork was 38.5, lamb and mutton 5.7, poultry 12.2, miscellaneous meats 5.1, lard 23, and butter 60.1 per cent below the average. Storage stocks of cased eggs at the beginning of the new storage season on March 1 were heavily below the average holdings. United States cold storage holdings reported by the Bureau of Agricultural Economics: Mar. 1 Mar. I 1935 5-Yr.Av. Beef, lbs.·--·· ........................................ 66,053 no,777 Pork, lbs............................................... 666,598 7.15, 1 36 2,720 3,506 Lamb and mutton, lbs. ...................... 2,565 Poultry, lbs ..-..................................... 85,843 106,776 97,766 **Turkeys, lbs. ........................................ 19,101 16,061 22,973 Miscellaneous meats, lbs ... ·-··············· 69,697 89,495 73,415 IIo,197 102,452 Lard , lbs............................................... 78,879 1 59 13 191 34 Eggs, cases............................................ Eggs, frozen (case equivalent) .......... 1,371 1,706 1,126 1,491 Butter, creamery, lhs.·-······················· 8,183 21,502 8,110 20,492 Cheese, all varieties, lbs..................... 79,578 90,890 70,156 64,169 (ooo omitted.) *Subject to revision. **Included in Poultry. *Mar. I 1936 87,011 45 I ,800 Feb. 1 1936 104,447 436,042 2,824 103,833 20,541 79,034 75,669 were 6.3 and calves 23.5 per cent above the ten-year average volume for the month, while purchases of hogs were 52.1 and sheep 12.7 per cent below the average volume. The slaughter of cattle, hogs, and sheep during the first two months of 1936 Coal showed increases and the slaughter of calves a decrease comThe production of bituminous coal in the District, with pared to the first two months of 1935. continued low temperatures, increased 13.1 per cent from The Department of Agriculture report on Federally inspected January to February and was substantially greater than prolive_ stock slaughter in the United States, excluding slaughter duction a year ago, exceeding the average for the month during for Government relief purposes, showed similar reductions in the past ten years by 37 per cent. Production for the first meat packing operations from January to February, but in- two months of 1936 was 40.8 per cent greater than in the correscreases in the slaughter of cattle, calves, and sheep and a de-.i,11 ponding period last year. 7 THE MONTHLY REVIEW Zinc and Lead Bituminous coal production reported by the Bureau of Mines: Colorado ....................................... . Kansas and Missouri .................. New Mexico·--···················· ....... . Oklahoma..................................... . Wyoming...................................... *Feb. 1936 Tons 930,000 831,000 I 56,000 327,000 690,000 Jan. 1936 Tons 756,000 848,000 l 52,000 302,000 537,000 Feb. 1935 Tons 489,000 592,000 107,000 122,000 391,000 Six states.. .................................... 2,934,000 2,595,000 1,701,000 United States·----······················· 41,290,000 39,330,000 34,834,000 *Estimated from the weekly reports of the United States Bureau of Mines. Petroleum The production of crude petroleum in the District decreased 8.6 per cent during February, owing to a decline in the daily average flow and to fewer days than in the preceding month. Production was 5.5 per cent greater than in February, 1935, and exceeded the average for the month during the past ten years by 4.8 per cent. During the first two months of 1936, production increased 5.4 per cent compared to a year ago. Gross and daily average production, estimated from the weekly reports of the American Petroleum Institute for February, and officially reported by the Bureau of Mines for January, 1936, and February, 1935: GROSS PRODUCTION Feb. 1936 Barrels Oklahoma..................................... . 14,747,000 Kansas ......................................... . 4,048,000 Wyoming...................................... 935,000 114,000 Colorado·--·································· 1,657,000 New Mexico.... ·- ··························· Jan. 1936 Barrels 15,902,000 4,459,000 l,II6,ooo 130,000 1,915,000 Total five states.......................... 21,501,000 23,522,000 Total United States.................... 80,459,000 88,820,000 DAILY AVERAGE PRODUCTION Feb. 1936 Jan. 1936 Barrels Barrels 508,500 513,000 Oklahoma·-··································· Kansas ......................................... . 139,600 143,800 Wyoming...................................... 32,300 36,000 3,900 4,200 Colorado.--··································· 57,100 61,800 New Mexico·---··························· Total five states.......................... Total United States.................... 741,400 2,774,400 758,800 2,865,200 Feb. 1935 Barrels 1.3,730,000 4,177,000 963,000 l 17,000 1,402,000 ~0,389,000 72,763,000 Feb. 1935 Barrels 4<J0,300 149,200 34,4oo 4,200 50,100 728,200 2,598,700 Leasing was reported active in Kansas and Oklahoma. Mid-continent crude oil prices were unchanged throughout February at schedules posted on January 9, ranging from 86 cents per barrel for oil testing below 25 degrees gravity to $1. 18 per barrel for that testing 40 degrees and over. Shipments of zinc ore from Tri-State mines and tailing mills decreased further during the four weeks ended February 29 and were IO per cent below shipments in the corresponding four weeks of 1935. The continuance of cold weather throughout the first three weeks of February again interfered with tailing and loading operations, and producers were reluctant to sell at prevailing prices. Lead ore shipments were substantially heavier than in either the preceding four-week period or in the corresponding period a year ago. The approaching March 1 tax assessment date in Kansas stimulated lead shipments from that state. The tonnage and value of zinc ore and lead ore shipments from the Tri-State district: Oklahoma.......................................... Kansas ............................................. . Missouri ............................................ Zrnc ORE Tons Value 16,700 $ 534,400 10,410 333,120 1,910 61,120 4 4 4 9 9 29,020 '/, 928,640 34,36o 1,099,520 32,258 838,708 71,970 2,303,040 65,907 1,713,582 Weeks Weeks Weeks Weeks Weeks ended ended ended ended ended Feb. Feb. Mar. Feb. Mar. 29, 1936...... 1, 1936·--··· 2, 1935.---· 29, 1936. ___. 2, 1935·--··· LEAD ORE Tons 1,846 3,798 IIO 5,754 Value '$ 87,942 183,756 5,240 2,650 2,728 $276,938 124,550 89,140 9,650 460,050 7,842 273,244 Zinc ore prices remained unchanged during February at $32 per ton for the twenty-first consecutive week, while lead ore prices ad vancecl $2 to $49 per ton, recording the first change in lead prices in four months. Comparable month-end quotations a year ago were $26 for zinc and $33 for lead. Cement Production of finished Portland cement in the District increased slightly during February and was IO. 5 per cent greater than a year ago, while production for the first two months of 1936 showed a slight decrease compared with production in the same period in 1935. Shipments and stocks declined during the month, but shipments were approximately equal to shipments in February, 1935, and stocks at the close of the month were larger than a year ago. Cement production, shipments, and stocks reported by the Bureau of Mines, in thousands of barrels: TENTH DISTRICT Production Shipments Stocks February 1936.. 367 396 2,391 January 1936._. 360 452 2,420 February 1935.. 332 398 2,355 2 Months 1936 727 848 2 Months 1935 740 785 UNITED STATES Production Shipments 3,454 3, 156 3,630 3,889 3,053 2,951 7,084 7,o45 6,255 5,797 Stocks 22,985 22,686 21,899 National Summary of Business Conditions By the Board of Governors of the Federal Reserve System Volume of industrial production and employment showed little change in February, and the index of production, which makes allowance for seasonal changes, declined from 98 to 95 per cent of the 1923-1925 average. Distribution of commodities continued at about the January level. PRODUCTION AND EMPLOYMENT: Daily average output in basic industries was in about the same volume in February as in Janu ary. Since usually there is an increase in manufacturing activity at this season, the Board's seasonally adjusted index of factory output showed a decline. Output at mines increased. There was a substantial fm ther decrease in automobile production in February, and the rate of operations at steel mills increased by less than the usual seasonal amount. In the first half of March production of steel expanded season- ally and output of automobiles showed a more than seasonal increase. There was little change in the volume of lumber cut in February, although an increase usually occurs in that month. At woolen mills production increased by about the seasonal amount, while activity at cotton textile mills, which is usually larger in February than in January, decreased, and at silk mills there was a larger than seasonal decline. Output at meat packing establishments also declined. There was a substantial increase in the mining of both anthracite and bituminous coal, while output of crude petroleum declined somewhat. Factory employment increased by less than the usual seasonal amount between the middle of January and the middle of February. There was little change in the number of workers 8 THE MONTHLY REVIEW at steel mills and a decrease in the number employed at auto- of February and the first half of March, following a six month mobile factories, although increases are usual in these industries period of little change. The recent downward movement in February. Employment declined at silk and rayon textile reflected declines in prices of farm products and foods. mills and showed a smaller than seasonal increase at shoe BANK CREDIT: Excess reserves of member banks defactories. Increases in employment were reported for railroad creased by $650,000,000 during the four weeks ending March repair shops, for printing and publishing establishments, and • 18 and on that date amounted to $2,400,000,000. This defor factories producing wearing apparel. Factory payrolls, crease reflected chiefly a transfer of funds to Treasury deposits which are usually larger in the middle of February than a at the reserve banks in connection with receipt of income taxes month earlier, showed no change. and of cash payments for newly-issued Government securities. PER CENT PER CENT 140 ;..;.-----,---~--....-----.----,------,----, 140 INDUSTRIAL PRODUCTION 130 PER.CENT PER CENT t 20 .-------.-----.-F-A-C_T_O.,..R_Y_E_M~P_L_O_Y_M.--E_N_T-.----,-~--, 120 130 60 t - - - + - - - + - - - - - - - - - - - - - - - - , r - - - 1 6 0 50 50 1929 1930 1931 1932 1933 1934 1935 50 ,.___ __,__~_.__ __,___ ___.__ __.__ _...___ ____.__ __. 50 1936 1929 1930 1931 1932 .1933 1934 1935 1936 Index of physical volume of production, adjusted for seasonal variation, 1923-1925 average=IOO. By months, January 1929 through February 1936. Index of number employed, adjusted for seasonal variation, 19231925 average=Ioo. By months, J anuary 1929 through February 1936. The value of construction contracts awarded, as reported by the F. W. Dodge Corporation, declined further in February. Awards for residential construction showed little change, and there was a decrease in the value of awards for all other contracts, a large part of which are for public projects. DISTRIBUTION: Department store sales showed little change from January to February and, after allowance for seasonal variation, were at about the same level as that prevailing last summer and autumn. Freight-car loadings in- Loans and investments of reporting member banks in leading cities increased rapidly in March and on the 18th of the month were $525,000,000 higher than four weeks earlier. Of this increase $190,000,000 represented a growth in holdings of direct and guaranteed obligations of the United States Government and $80,000,000 an increase in other investments. Security loans both to brokers and dealers and to others increased, and there was a substantial growth in so-called "other loans", which include loans for commercial purposes. BILLIONS OF OOl.l.ARS 12 BILLIONS OF DOUARS 8 MEMBER BANK RESERVES AND RELATED ITEMS I 11 10 GoldSl°Y 7 - BILLIONS OF D0U.ARS Bl LUONS OF DOLURS 16 15 l - - - + - - - - - - - - - - - - 1 9 5 1---+-----+-------l 22 -.h,j-----<21 14 6 23 MEMBER BANK CREDIT 13 1 - - - - - 1 - - - - . . ~ - + - - - - - - l f---+---:...-..~'--+-------; 20 12 19 11 8 7 ~ ' 3 ,, --•~;;:;f:~1l!k ... 6 ------1 t---:t::;::;;""-il"~r--=---i---------i 8 51--;~-,t'S~:....-i-----i~~= = = = ~ = = = - = ~ 7 4 I Reserve Bonk 3 /Credit 2 4 2 - '3 l---+------+-------1 2 ------< t;;:::::;:::~~~~~--~ 3 r.::::t::::-c::::-_-_-:__-:__-_--+-!--~-----, 2 Currency 0 1934 1935 Wednesday figures. 0 1936 1934 1935 1936 January 31, 1934, through March 18, 1936. creased by a small seasonal amount in February. Loadings of coal were considerably larger than in January, while shipments of miscellaneous freight declined, and the Board's seasonally adjusted index of total loadings remained at the January figure of 70 per cent of the 1923-1925 average as compared with 71 per cent in December and an average of 63 per cent for 1935. ~ COMMODITY PRICES: The general level of wholesale con:modity prices declined somewhat during the latter part 1936 1936 Wednesday figures for reporting member banks in 101 leading cities. September 5, 1934, through March 18, 1936. Adjusted demand deposits of reporting member banks declined by $340,000,000 during the four weeks ending March 18. Balances held for domestic banks increased at the turn of the month as banks in the interior sold Government securities in New York in anticipation of maturities. During the week ending March 18 balances declined, partly as the result of banks throughout the country purchasing in the New York market Government securities issued on March 16.
@FedFRASER