The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
THE MONTHLY REVIEW Of Agricultural, Industrial, Trade> and Financial Conditions in the Tenth Federal Reserve District FEDERAL Vol. 22 RESERVE KANSAS CITY, BANK MrssouRI, A FTER showing some hesitancy in January, business activity in the Tenth Federal Reserve District was generally maintained in February at a level above that of a year ago. Department store sales increased more than seasonally, reflecting in part the earlier arrival of Easter, while wholesale distribution declined by about the usual seasonal amount. Retail sales of lumber, while smaller than in January, were considerably larger than a year ago. Debits to individual accounts in banks declined seasonally. The value of construction contracts awarded in the District was smaller than in January but building permits in reporting cities increased substantially. Daily average output of crude petroleum continued to increase during February, and there was a further small decline in stocks of crude oil. Activity at flour mills, although at a relatively high rate, declined more than seasonally, reflecting the continued small volume of flour sales. Production of bituminous coal decreased less than the usual seasonal amount, while zinc and lead shipments increased substantially. There was a further increase in zinc and lead ore prices. Operations at meat packing plants declined further in___ February, falling slightly _below a year ago. Marketings of grains and live stock generally continued in small volume during February. Grain prices showed only small net changes for the month. Cattle prices declined, while prices of hogs and lambs increased. The general level of grain and live stock prices was the highest in about seven years. The feed situation on March I appeared to be about the same as two years earlier, since increased supplies at the start of the winter have been consumed at a much faster rate than two years ago. Precipitation in February, while of material benefit in combating soil erosion and in supplying needed moisture for winter wheat, was only about half of normal for that month. Additional rains and snows in March have been helpful. Planting intentions on March I indicated larger acreages this year for many crops in the District. The abnormally low corn acreage in prospect and the unusually large acreage seeded to winter wheat last fall evidenced an apparent tendency to shift acreage to a crop that can be harvested before being damaged by the unfavorable weather which has characterized late sumrr.er the past few years. Member Bank Operations Total loans and investments of fifty-one weekly repo , cing member banks in leading cities in the Tenth District declined further during the four weeks ended March 3, reflecting principally a decrease in holdings of United States Government obligations. Commercial, or "all other," loans, which had declined seasonally in January, increased to a level near that at the opening of the year, but this increase was more than offset by the decline in investment holdings. Reserve balances of these OF APRIL KANSAS CITY 1, 1937 No. 4 BUSINESS IN THE TENTH FEDERAL RESERVE DISTRICT (In percentages of increase or decrease) February 1937 2 Mos. 1937 compared with compared with Jan. 19.17 Feb. 1936 2 Mos. 1936 Banking Payments by check, 30 cities +10.1 +12.8 - 15.5 Federal Reserve Bank check collections __ -8.o +4.8 +0.9 Business failures, number_________________________ +19.2 -22.5 -36.0 Business failures, liabilities________________________ +124.9 +161.3 +7.4 Loans, 51 member bank +13.8 +0.9 Investments, 51 member banks _______________ -1.4 + 1 9.4 Adjusted dem. deps., 51 member banks __ -1.7 +10.9 Time deposits, 51 member banks.__________ -0.2 +0.7 Savings deposits, 45 selected banks _________ -0.1 +3.9 Savings accounts, 45 selected banks __ ______ +o.2 +2.8 Distribution Wholesalers' sales, 5 lines combined ________ +8.1 -4.4 +6.7 Retailers' sales, 32 department stores _____ +8.o +6.5 +6.5 Lumber sales, 1 57 retail yards _________________ -2.7 +12.2 +0.7 Life insurance, writte -0.4 -3.6 +3.0 Construction Building contracts awarded, value_________ +108.9 -7.5 + 24•3 Residential contracts awarded, value ____ __ -26.4 +124.5 + 11 5.9 Building permits in 18 cities, value_____ ____ +71.8 -16.1 - 24.5 Production Flour -O.I -11.5 +5.4 Crude petroleu -7.8 +20.0 + 19.3 Bituminous coal.. ____ -9.6 -5.3 +4.3 Zinc ore (shipped) Tri-State district.....___ +31.0 +44.6 +11.9 Lead ore (shipped) Tri-State district ______ +71.9 -8.1 -7.5 Grain receipts, 5 markets Wheat__________ ________________________________________________ -2.9 +44.4 +3.8 Corn ________________ -27.2 -4.9 ··---------·------------ -16.6 Oats __ +o.8 +5o.5 +37.3 -12.4 -35.'l -56.1 Rye·-------·-----------··----· Barley._____________________ __ -24.8 -33.3 -59-4 -72.2 Kafir. Live stock receipts, 6 markets Cattle __________ Calves. _____________ -33.8 - 27.4 -28.4 -13.2 -28.9 -10.0 +17.8 Hogs·------··----·------··-----·--Sheep ______________ Stocker-feeder shipments, 4 markets Cattle----------------·-·-----·---------·---------·---·----------Calves_______________ _ I-togs __ Sheep-------------------------------------------·-------·--Meat packing, 6 markets Cattle.. Calves_____________ Hogs.. Sheep _______ -18.9 -6.4 + 19.7 -10.2 -2.0 -48.2 -53.8 -37-2 -30.2 +7.6 + 253.4 -32.6 +29-5 -2.7 +4o.7 -36.3 + 27.4 -19.2 -13.1 -II.4 -24.2 +s.9 -18.9 +6.9 -2.3 -11.6 -1.5 -14.2 +4.0 -8.7 +3.6 reporting member banks, following a decrease in December and throughout the greater part of January, subsequently increased and on March 3 were slightly above the level of early last December. There was a further decrease in demand deposits and in United States Government deposits and a small decline in bank balances. Total loans and investments on March 3 were 17.4 per cent greater than a year ago, reflecting principally increases of I 5.3 per cent in_the volume of commercial loans, of 22.4 per cent in 2 THE MONTHLY REVIEW holdings of United States Government direct obligations, and of 18.9 per cent in holdings of other securities. Reserve balances showed an increase of 38.3 per cent during the past year, and demand deposits increased 10.9 per cent. The principal items of the consolidated weekly condition statements of the fifty-one reporting member banks: Loans and investments-total.. .................... Loans and disconn ts Secured by stocks and bonds ................... . All other loans and discounts.................... Investments U. S. Government direct obligations. __ .. Obligations fully guaranteed by the U. S. Government............................ Other securities·-·························· ............... Reserve with F. R. Bank.............................. Demand deposits-adjusted ......................... . Time deposits ...·-······----·················· U.S. Government deposits............................ Inter-bank deposits........................................ Increase or decrease since Mar. 4 Feb. 3 Mar. 3 1936 !.211 !.2:11. (In thousands of dollars) -4,420 +103,974 702,093 52,001 193,042 -636 + 2,939 +4,139 +25,588 270,831 -4,934 +49,629 47,764 138,455 152,623 480,208 145,7 14 6,809 384,823 -1,648 -141 +4,016 -8,243 -289 -5,879 -2,222 +2,616 +22,002 +42,280 +47, 16o +99 1 -5, 147 +9,994 Reserve Bank Operations Holdings of bills discounted for member banks in the District, while in slightly larger volume, showed little appreciable change during the four weeks ended March 3. There was also little change in holdings of bills bought in the open market, and holdings of United States Government securities continued unchanged at a level 18.5 per cent above a year ago. Industrial advances and commitments declined further during the four weeks. A year ago in February the total of such loans and commitments was the largest since the inception of the industrial loan program in August, 1934, but the volume of these loans and commitments has been reduced more than half during the past year. Federal Reserve note circulation, following a small decrease from the record high level reached on December 22, has shown little change since early this year but has increased 12.1 per cent as compared with a year ago. Member banks' reserve deposits increased somewhat during the four weeks ended March 3. On March I, half of the 33 1-3 per cent increase in reserve requirements became effective, and the remaining half will become effective on May I. At that time required reserves will have been doubled as compared with August 14, 1936, prior to the first increase in required reserves. The principal items of the weekly condition statements of the Federal Reserve Bank of Kansas City and branches: Increase or decrease since Mar. 3 Feb. 3 Mar. 4 1937 1937 1936 (In thous~ of dolla;:;rTotal reserves............. _ _ _ _ _ _ _ 270,303 +10,413 +52,182 Bills discounte.u . - _ _ _ _ _ _ 326 +249 +64 Bills purchased................................................ 87 -46 Industrial advaaces........................................ 733 -25 -399 Commitments to make industrial advances 153 -70 -578 U.S. Government securities·-······················· 126,6o1 +19,757 Total resources .. _ _ _ _ _ _ _ _ 438,816 +14,849 +75,733 F. R. notes in circulation.............................. 160,414 +522 +17,363 Member banks' reserve deposits.................. 224,057 +6,822 +48,953 The discount rate of the Federal Reserve Bank of Kansas City, on all classes of paper and all maturities under Sections 13 and 13a of the Federal Reserve Act, remained unchanged at 2 per cent, this rate having been in effect since May 10, 1935. Reserve Bank Check Collections Check collections through this bank and branches showed less than the usual seasonal decrease from January to February. The dollar volume was 4.8 per cent and the number of items handled 3.3 per cent greater than in February of last year. During the first two months of 1937 there was a small decrease in items but a slight increase in dollar volume as compared with the first two months in 1936. Check collections through the Federal Reserve Bank of Kansas City and branches at Omaha, Denver, and Oklahoma City: AMOUNT ITEMS !ill February .......... January............ Two months·--· 5,220 5,420 10,640 1936 1937 (In thousands)-5,051 ,, 833,489 5,713 906,081 10,764 1,739,570 $ 794,955 92 9,21 9 1,724,174 Bank Debits Debits ta individual accounts by banks in thirty reporting centers in the District declined by about the usual seasonal amount from January to February but increased 10.1 per cent as compared with February of last year. Payments by check for the first two months of 1937 were 12.8 per cent greater than in the same period last year. Since checks are drawn in terms of money,. the volume of bank debits is influenced by price changes as well as the physical volume of business. This important fact should be held in mind in using bank debits as an indicator of business. Debits to individual accounts by banks in the thirty reporting cities: Albuquerque, N. M .. - ................. Atchison, Kans.·---····················· Bartlesville, Okla.·--··················· Casper, Wyo .. _ _ __ Cheyenne, Wyo... _ _ _ __ Colorado Springs, Colo..--.•······· Denver, Colo ............................... Emporia, Kans·---····················· Enid, Okla......... _ __ Fremont, Nebr _ _ __ Grand Junction, Colo................. Guthrie, Okla ..-........................... Hutchinson, Kans... .................... Independence, Kans._ ................ Joplin, Mo ......... _ _ __ Kansas City, Kans..............·-···· Kansas City, Mo. _ _ __ Lawrence, Kans _ _ _ __ Lincoln, Nebr.·--·······-···--········· Muskogee, Oki _ _ __ Oklahoma City, Okla•--············ Okmulgee, Okla..- ....... ................ Omaha, Nebr ............................... Pittsburg, Kans·-························ Pueblo, Colo _ _ _ __ Salina, Kans .......... _ _ __ St.Joseph,Mo _ _ _ __ Topeka, Kan.,.__ __ Tulsa, Oki..__ _ _ _ __ Wichita, Kans ..· - · · - - - Increase or decrease as compared with Feb. 1937 Jan. 1937 Feb. 1936 (In thousands of dollars) -2,329 +2,143 12,585 +130 3,276 -42 9 +668 -2,841 '23>009 +214 -1,152 4,617 +428 -1,489 6,747 16,56o +4,055 +34 +22,128 161,192 -13,841 2,804 -235 -765 -2,o62 +229 7,780 2,076 +23 -234 3,121 +6go -438 +181 1,.834 -87 +2,381 JI,877 -53 1 2 ,545 -381· +3 1 4 -818 9,109 +708 12,878 +2,663 -4,353 -74,o77 275,727 +2 5,045 +221 -219 3,399 -4,626 23,328 +1,902 -1,925 7,o73 +245 -22,219 90,420 +7,978 -480 -271 2,464 +12,924 137,501 -13,037 3,638 -679 -95 16,125 -4,833 +4,983 +1,186 8,536 +143 24,488 -6,078 -1,892 16,100 -4,084 +339 121,295 +7,'2'22 - 2 4,6o5 2 +261 -4,714 4 ,695 District, 30 cities.......·-············· United States, 141 cities............ 1,054,899 34,526,295 -193,149 -4,952,482 +¢,868 +2,954,302 Failures Commercial failures in the Tenth District showed a small upturn in February although normally they follow a declining trend in that month. The number of failures, however, was smaller than a year ago, while liabilities showed an increase as compared with February of last year. During the first two months of the year, failures decreased considerably in number but increased slightly in liabilities as compared with the first two months of 1936. j THE MoNTHLY REvrnw RETAIL 'TRADE AT 32 DEPARTMENT STORES IN THE TENTH FEDERAL RESERVE DISTRICT (In percentages of increase or decrease except rate of turnover) AMOUNTS COLLECT.ED SALES STOCKS (RETAIL) ACCOUNTS RE CEIVABLE Feb. 1937 Stores Feb. 1937 2 Mos. 1937 Feb. 28, 1937 STOCK TURNOVER Feb. 28, 1937 compared with Report- compared with compared wjth compared with February 2 Mos. compared with Feb. 1936 i~ Feb. 1936 2 Mos. 1936 Jan. 31, 1937 Feb.29,1936 !2,1Z 1936 !.2JZ !.21§. J an.31,1937 Feb.29,1 936 .Jan. 1937 -14.9 +17.5 Kansas City.... 4 + 9.0 + 8.9 +10.1 +20.5 .28 .31 .56 .59 -1 2.2 +11.4 -24.0 + 6.3 Denver·-··········· 4 +10.9 +10.7 + 7.8 +10.6 .27 .27 .55 •54 - 8.4 + 8.9 -31.0 + 4.3 Oklahoma City 3 - 1.0 - o.8 +19.6 + 5.4 .36 .37 .67 .69 -13.0 + 8.o -24.9 +12.2 Tulsa................ 3 +10.4 + 7.6 +22.8 +20.7 .35 .36 .68 .69 - 7.6 +10.8 -23.6 +n.4 Wichita............ .3 +11.1 + 7.1 +30.4 +14.2 .27 .26 .52 .51 - -i.5 +11.5 -22.6 + 4.3 Other cities ...... 15 + 6.9 + -i.5 +22.4 +12.3 .21 .22 •43 •45 - 9.5 + 5.7 + 8.o TotaL............... 32 +13.5 Business failures reported by Dun and Bradstreet, Incorporated: TENTH DISTRICT Liabilities 31 $452,000 26 201,000 40 173,000 ~ February 1937·--················· January 1937- - - ~ February 1936·-··················· Two months 1937·-············· Two months 1936·--··········· 57 653,000 89 608,000 UNITED STATES Number Liabilities 721 1, 9,771,000 8n 8,661,000 .856 14,089,000 1,532 18,432,000 1,933 32, 193,000 Savings Savings deposits at forty-five selected banks in leading cities of the District declined slightly during February while the number of accounts showed a small increase. Savings deposits on March 1 were 3.9 per cent and the number of accounts ~.8 per cent greater than on March 1, 1936. Savings accounts and savings deposits reported by the fortyfive banks: March 1, 1937.................................. ....... February 1, 1937 .................................... March 1, 1936·-······································· Savings Accounts 418,160 417,523 406,673 Savings Deposits i I 29,930,000 130,1 l 5,000 125,047,000 Trade RETAIL: Departme11t store sales, as measured by the dollar volume of thirty-two reporting stores in leading cities of the District, increased somewhat more than seasonally during February, reflecting the early movement of spring merchandise due in part to more favorable shopping weather and the -earlier arrival of Easter. February sales were 8.o per cent larger than a year ago despite the fact that in most cities the month had one less business day this year than last year and only four Saturdays as compared with five a year ago. Total sales for the first two months of 1937 were -up 6.5 per cent a.s compared with the first two months of 1936. Since s-aies -are expressed m clollars, they consequently reflect changes in retail prices which, according to the Fairchild Retail Price Index, have ,advanced uninterruptedly the past eight month~. March 1 prices showed an increase of 0.7 per cent over February 1 and an increase of 6.1 per cent over one yeaT earlier. While about 20 per cent b_elow the level of November, 1929, prices have increased 35 per cent from the May, 1933, depression low. · Stocks ot merchandise were enlarged somewhat more than seasonally during February, reflecting not only preparations for spriqg bu_siness but also an ap-parent tendency to forward buy- Stores Reporting Dry goo.ds ........................ Groceries .......................... Hardware.---··················· Furnitur Drugs.. 5 4 9 3 6 .27 . 28 .54 .55 - 9.5 + 8.6 -23.1 + 8.3 ing. The advance in retail prices has lagged behind that in wholesale quotations, with many retail items currently selling below replacement costs. Stocks at the close of February were I 3. 5 per cent larger than a year ago. Collections on open accounts averaged 43.8 per cent of receivables in February, 47.1 per cent in January, and 44.3 per cent a year ago. Installment collections averaged 14.4 per cent in February, the same as in the preceding month, and 15.9 per cent in February of last year. WHOLESALE: Wholesale distribution, as measured by the combined dollar volume of sales of five reporting trade groups, declined seasonally during February but increased 8.1 per cent as compared with a year ago, reflecting in part the rising trend of wholesale prices, particularly in hardware, building materials, furniture, and dry goods lines. Sales of dry goods, groceries, and drugs were smaller than in January while sales of hardware and furniture were larger. There was an increase in sal~s for all groups except groceries as compared with February of last year. During the first two months of 1937, sales of dry goods increased 21.1, hardware 12.7, furniture 28.1, drugs ~.1, and total sales 6.7 per cent as compared with the first two months of 1936. Sales of groceries declined 0.1 per cent. Inventories of wholesalers at the close of February were 7.8 per cent heavier than one month earlier and were 21.2 per cent heavier than at the close of February last year. These increases reflected in part forward huying clue to labor disturbances and anticipated further price increases. Stocks of dry goods and furniture showed relatively the greatest increase during the month, while all groups showed rather heavy increases for the year. Lumber Retail lumber sales in board feet at I 57 reporting yards showed a small further decrease during February but were somewhat larger than in February of last year. This increase over February of last year offset the decline recorded for January, bringing total sales for the first two months of the year up to that for the first two months of 1936. Dollar sales of lumber and other materials, although larger than a year ago, declined further during February. Stocks of lumber increased further during February but at the close of the month did not show as great an increase over a year ago as at the end of January. February collections aver- WHOLESALE TRADE IN THE TENTH FEDERAL RESERVE DISTRICT (In percent~es of increase or decrease) SALES OUTSTANDINGS AMOUNTS COLLECTED Feb. 28, 1937 Feb. 1937 Feb. 1937 com pared with compared with compared with Feb. 1936 Jan. 31, 1237 Feb. 29, 1936 J an. 1937 ~ Feb. 1236 +27.0 - 1.6 +16.1 - 6.7 + 4.2 + 19.7 - 12.5 - 4.0 + 2.6 - 1.0 - 2.3 + 6.5 +17.6 + 8.3 + 3.2 - 9.2 + 19.2 + 1.9 + 4.0 +16.5 +51.1 +35.6 - 5.0 + 1 9.4 - 6.o + 0.2 - 2.4 + 8.1 + 0.9 +11.3 STOCKS Feb. 28, 1937 compared with Jan. 31, 1937 Feb.29, 1936 + 21.4 +47.5 + 3.8 + 13.9 + I.8 + 9-5 + 8.o +11.9 + 1.0 + 15.7 THE MONTHLY REVIEW 4 aged 35.4 per cent of amounts outstanding at the close of the preceding month as compared with 40.1 per cent in January and 37.2 per cent in February, 1936. February business at the 157 reporting retail yards: February 1937 compared with January 1937 February 1936 (Per cent increase or decrease) Sales of lumber, hoard feet ................................ -2.7 +12.2 Sales of all materials, dollars........................... -II.I +6.5 +2.3 +12.1 Stocks of lumber, board feet.---······················· Outstandings, dollar.,___ _ _ _ _ __ -2.2 +23.3 Building Following an increase in January, the value of construction contracts awarded in the District declined in February, reflecting a reduction in the volume of residential construction which recently had shown substantial improvement. Awards for both residential and non-residential construction, however, were more than twice as large as a year ago and were at the highest February level since 1931. The value of construction contracts awarded, reported by the F. W. Dodge Corporation: February 1937•-··········· January 1937·--··········· February 1936._........... Two months 1937........ Two months 1936._..... TENTH,....DISTRICT 37 EASTERN STATES Total Residential Total Residential (In thousands of d ~ 8,966 2,564 188,533 63,004 9,694 3,486 242,827 78,407 4,293 1,142 142,050 31,176 18,66o 6,050 431,36o 141,411 I 5,009 2,802 346,843 68,616 With a moderation in weather conditions, the number and value of permits issued for new construction, alterations, and repairs in eighteen reporting cities in the District increased during February. More permits were issued than in February of last year but estimated expenditures were 16.1 per cent less, reflecting principally substantial decreases in three of the eighteen centers. Value of permits for the first two months of the year was ~+5 per cent below a year ago. Building permits reported by the eighteen cities~ PERMITS !2J2 ~ Albuquerque, N. M,·--··············· Cheyenne, Wyo. Colorado Springs, Colo. _____._____ Denver, Colo ..... Hutchinson, Kans·-················---Joplin, Mo, .. _.... Kansas City, Kans..................... Kansas City, Mo Lincoln, Nebr. Oklahoma City, Oki Omaha, Nebr. Pueblo, Colo,. ______ ....................... Salina, Kans Shawnee, Okla•.. St. Joseph, Mo Topeka, Kans. Tulsa, Oki Wichita, Kans..... 67 34 38 354 37 8 IO 18 Cities, February.................... 18 Cities, JanuarY----···--···· Two month 133 58 167 38 46 8 57 t, 16 27 173 18 9 13 117 27 92 12 18 7 EsTIMATED CosT 1936 120,000 '/, 71,000 43,000 55,000 26,000 99,000 440,000 709,000 15,000 39,ooo 10,000 12,000 22,000 45,000 422,000 199,000 7,000 55,000 1,272,000 376,000 293,000 99,ooo !.m. 155,000 II IO 17,000 7,000 3 z3 99 104 2 3,000 54 57 75 40,000 524,000 220,000 1,238 843 2,081 784 873 1,657 t,2,887,000 1,680,000 4,567,000 5,000 15,000 11,000 4,000 629,000 150,000 II9,ooo $3,441,000 2,610,000 6,051,000 Flour Milling ~ Southwestern flour production declined 11.5 per cent from January to February, reflecting not only the usual seasonal influence of a shorter month but also a greater than seasonal decline in activity. Operations were at a higher rate than in February of last year but production showed little change because of one less milling day this year. Output, however, was slightly above the February average during the past ten years. Milling operations averaged 66.5 per cent of full-time capacity in February, 69.3 per cent in January, and 63.8 per cent a year ago. Production for the first two months of this year showed an increase of 5.4 per cent over the same period last year. Flour production at the principal milling centers in the District, estimated from the weekly reports of southwestern mills to the Northwestern Miller: Increase or decrease as compared with Jan. 1937 Feb. 1936 (In barrels) -14,000 -23,000 +13,000 -37,ooo -II,000 +24,000 +20,000 -31,000 -42,000 -145,000 Feb. 1937 Atchison ....................................... Kansas CitY·--····························· Salina.... ·-········· ···························· Wichita.-··-·••·••········· ................. ·. Outside.-...................................... . 107,000 518,000 165,000 167,000 941,000 TotaL_··----···················· 1,898,000 -247,000 +1,000 *United States·---······················· 4,844,000 -476,000 -695,000 *Represents about 6o per cent of the total output in the United States. Flour sales in the southwest were in slightly larger volume in February than in January, largely owing to a few sizable round lot orders, but otherwise new business continued dull. Sales since the first of the year have been below normal, reflecting principally the heavy bookings prior to that time. The steady withdrawal of previously contracted supplies, while maintaining mill activity at a relatively high rate, had reduced the volume of unfilled orders on mills' books by the close of February to about the same as that a year ago. Flour prices at the Kansas City market advanced during the forepart of the month but later declined to close the month with a small net loss. Bran prices also declined, but prices of shorts strengthened with the approaching spring pig and poultry feeding season. Grain Marketing The movement of grain to the five principal markets in the District, as in January, was generally light in February. Receipts of wheat represented but 40.1, corn 34.7, rye 25.2, barley 46.9, and kafir 14.3 per cent of the February ten-year average, while receipts of oats exceeded the average volume by 36.4 per cent. Snow-blocked roads during part of the month tended to restrict the movement of grains to market although marketings were encouraged by prevailing high market prices. Receipts of wheat and oats for the first two months of the year were larger than in the same period in 1936, but arrivals of other grains were smaller than a year ago. Receipts of grain at the five markets: - Wheat Hutchinson ...................... Kansas City Omaha...... St. Joseph Wichita.___ February 1937_ __ January 1937____ February 1936 ---······-·· Two months 1937·--······ Two months 1936............ 682 1,974 511 139 489 3,795 3,907 2,627 7,702 7,423 ~ ~ ~ Barley Kafir (In thousands of bushels) 8 I 921 900 84 17 130 2 24 520 650 II 19 1,923 2,307 2,022 4,231 5,814 1,312 1,302 872 2,614 1,905 46 IO 12 13 15 20 27 62 43 57 106 101 362 64 97 97 161 222 Cash grain prices of wheat, corn, and kafir advanced slightly at the Kansas City market during February, while prices of oats, rye, and barley showed small net declines for the month. Cash grain prices at the Kansas City market: Mar. 15 Feb. 27 Jan. 30 Feb. 29 Feb. 28 Feb.28 ~ !fil !fil I.2J?_ !2J.i !.lli No. I hard, dk. wheat, bu. $1.34.½ $1.34 $ .81¾ t,1.31;1 t,1.07'.¼ t,1.00 No. 2 mixed corn, bu,_., 1.21½ I.21 1.18.½ .66.¾ ·90 ·44 No. 2 white oats, bu ....... .58.¾ .34½ -5 1 .51.¾ ·55 .30 No. 2 rye, bu .................. . 1.07 I.04 I.IO ,53_½ .80.½ .58 .44,½ .84 No. 2 barley, bu ...·--······90 ·90 ·9 2 ·49 No. 2 white kafir, cwt..... Z,17 2.09 2.04 I.IO .74 5 THE MONTHLY REVIEW Rainfall Beginning with this issue rainfall figures for selected stations in this District will be presented. In the table below, the first two columns show the total February rainfall and the normal for that month at the given station, while the last two columns give the cumulative figures from the first of the year. A glance at the table will show that February precipation for the District as a whole was little better than half what is normal for that month. However, owing to heavy precipitation in January, the total since the first of the year is appreciably above normal. But the moisture situation is not as favorable as these figures would indicate owing to the fact that the ground in most places was frozen in January, thus wasting much of the moisture of that month. Rainfall as reported by the United States Weather Bureau: Reporting Station CoLOllADO Denver_. Leadville__ ·····---·--···--·-----·-·-··-·Pueblo____·-------·---···-·····-·-·--····-· Lamar__ Garnett._ __ ._.._...... -Sunbeam·-------·-············-···-···-·· Two Months 1937 Total ~ (In i n c ~ .87 .93 .53 2.64 1.42 3- 13 .78 .78 •47 .86 .6o •44 •32 .19 .07 1.61 .85 .42 February 1937 Total Normal .58 2.08 .60 .28 Trace 1.15 KANSAS Topeka.. _.... ___ Iola.·-----------····-·······--·· Concordi Salina_····-··········-···-···········--·--·· Wichita. ___ .. ____ .....·············--····· Hays......······-··-······-····--··-··--····-· Dodge City......... ·-···--··--··--······ Elkhar Goodland .. .61 1.12 .32 1.05 .73 .39 .56 1.51 1.47 .88 1.08 1.25 .82 .77 .IO .31 .56 .89 . 86 .89 1.67 .22 ,21 .89 .25 .32 .20 .88 .80 .66 .30 .53 .II .48 .04 .55 .58 2.08 2.56 2.27 1 -33 1.32 .IO .61 2-45 2.80 1.49 1.70 2.03 1.15 1.18 .84 .78 3.48 4- 23 6.92 2 ·94 3.84 I.37 1.58 1.58 1.24 I.IO .92 .29 .45 1·59 1.47 1 ·35 1.00 .92 .87 1.05 .15 1.37 .72 1.42 1.30 2-43 3.o9 MISSOUJlI St. Joseph·----···-··-······--·---······· Kansas CitY·---·······-···--···-··-··· Joplin ____ ·······-·······----·····--·····-··· 1 -15 1.68 2·95 NBBllASlt.A Omaha .•.·-·-·······--······-···-··········· Lincoln·-········-·· Norfol Grand Jsland........ ---··········-··-··· McCook.· -··············-··············-··· North Platte.... Bridgeport.. ·-········· Valentine.·-············ .................. .95 1.59 NEW MEXICO Clayto Santa Fe·--·······-·······-····-·········· Farmington .... .05 .50 .84 1.17 .75 .76 .25 .65 1.66 2.20 I.II 1.50 .96 1.18 1.08 4.72 1.o6 1 ·55 I.75 01tLAHOMA Tuls McAlester_______ . Oklahoma City........---············· Pauls Valley.____...................... Hobart.... Enid.. _ Woodwar .12 .21 ,IO .40 .62 5.39 1.33 2.01 .80 1.23 1.34 3.57 5.o7 2.30 3.o9 1.72 2.24 1.68 WYOMING Cheyenn Casper Lander__ Shcrid .27 .6o I.II .85 .33 .63 .74 2.09 .72 1.45 .70 1.64 1.51 1.19 Crops February precipitation, as shown above, was generally substantially below normal but was of material benefit in temporarily halting soil blowing and in supplying moisture for the current needs of growing wheat plants. Over much of the Great Plains, however, particularly from western Nebraska southward, there was a continued deficiency in subsoil moisture reserves. Timely and generous rains will be necessary during the growing season if best crop growth is to be expected. Addi- tional rains and snows were received early in March and by the middle of the month winter wheat was generally covering the ground in the eastern part of Kansas and showing well in the drill rows elsewhere except in the extreme west. In Oklahoma, the progress and condition of winter wheat was fair except in the northwest. In Nebraska, most of the wheat was still dormant. The seeding of oats and barley and other spring farm work was going forward rapidly in the southern part of the District. PLANTING INTENTIONS: Farmers' intentions as of March I indicated an increase in the acreage to be sown to many crops in the District this spring. Even with these increases, however, intended acreages were generally below the average for the years 1928 to 1932, notable exceptions being spring wheat and grain sorghums. The prospective acreage of spring wheat was above the average in Nebraska and Colorado. and in nearly all states in the District there was a large prospective acreage of grain sorghums. The previously reported acreage sown to winter wheat in this District last fall had increased 19.3 per cent, and this figure, in conjunction with the abnormally small acreage in prospect for corn, indicates that farmers are tending to shift corn acreage to a crop that can be harvested before the extreme heat and drought of late summer. The indicated acreage of crops for harvest in 1937 in the seven states, all or parts of which comprise the Tenth District, and in the United States, reported by the Department of Agriculture: UNITED STATES SEVEN STATES Acreage Acreage Indicated Harvested Harvested Indicated Harvested Harvested 1928-32 ~ !.ill. ~ 1928-32 (In thousands of acres) 103,419 28,122 92,829 94,840 18,843 Corn .... ·-·-······ 19,771 15,610 Spring wheat 18,194 1,058 712 9,653 902 40,015 35,660 33, 21 3 6,503 Oats.-----······ 6,537 7,059 Barley.___ ...... 8,322 1,994 12,645 1,475 10,901 1,837 Tame hay.___ 7,646 55, 1 53 8,473 57,055 7,452 55,967 7,016 Gr. sorghums 7,000 3,421 7,5 1 4 3,9 14 3, 235 1,806 1,562 Dry beans .... 1,731 580 463 559 Potatoes........ 3,232 3,058 3,3 27 396 3 24 33° 822 Swt. potatoes 807 30 32 77 1 33 1,68:l 1,872 Tobacco ........ 6 1,467 4 4 2,979 Soy beans .... 6,300 368 5,635 434 4 14 Peanuts ____ ... 1,702 66 2,056 2,098 40 52 1,869 222 3,263 219 158 3,336 Cowpeas·-···-· 1,180 2,772 Flaxseed.......• 6:2 1,306 70 49 2 Live Stock MARKETINGS: The movement of live stock to the six principal markets in the District showed a further reduction during February, partly seasonal in nature. Marketings of cattle and hogs were in extremely small volume, falling 17.8 and 59.1 per cent, respectively, below the February average during the past ten years. Receipts of calves continued in large volume, exceeding the average by 20.5 per cent, but sheep receipts were 13.4 per cent below the average volume. Live stock numbers on farms in the District on January I were somewhat less than a year ago and had declined to the lowest level in recent years. There has also been a sharp decrease in cattle and lamb feeding operations as compared with a year ago. PRICES: Live stock values at the Kansas City market advanced early in February but subsequently declined, cattle closing steady to 50 cents per hundredweight below final January levels. Hogs showed a net gain of 10 to I 5 cents, lambs 10 to 25 cents, and choice slaughter ewes a gain of as much as 1,r.oo for the month. Beef steers reached a top of $13.00 as compared with '$14.00 in January and '$I 1.25 in February of last year. There was a sluggish demand for dressed beef throughout the month. With the exception of the $13.25 top in February, 1935, beef cattle prices were at the highest February level since 1930. 6 THE MONTHLY REVIEW Stocker and feeder prices were about unchanged to weak at the because of the snow cover in northern areas, the shortness of close of the month. Butcherweight hogs sold up to $10.25 in grass on native ranges and pastures, and limited grain pastures. February. This price was 25 cents under the January top and February moisture supplies over the southwestern drought area, 50 cents below a year ago but otherwise represented the highest while of some benefit, were reported not sufficient to overcome February level in seven years. Stock pigs closed the month accumulated deficiencies and assure good spring feed. Live about 25 to 50 cents higher. The lamb top of 1,10.75, paid for stock has wintered in fairly satisfactory condition in view of fed western offerings, was IO cents higher than in January and the short feed situation, but cattle in western Nebraska were equaled the top price in February of last year when lambs were reported thin because of prolonged cold weather. Death losses at the highest February level since 1930. Slaughter ewes at continued below normal. The condition of ranges and range animals, reported by the $6. 75 were also the highest for the same period. The upward trend in lamb and sheep prices since late last December has Department of Agriculture: reflected not only an increased demand for dressed lamb but R A~GES CATI LE SHEEP Mar.I Mar.I 10-Yr. Mar.I Mar.I 10-Yr. Mar.I Mar.I 1i0-Yr. also the rather strong position of the wool market. : i l l ~ ~ ~ 2 ~ ~ ~~ STOCKERS AND FEEDERS: Shipments of stocker and (In percentages of 100 as normal) feeder live stock from four markets in the District declined Wyo................... 62 75 76.5 78 83 86.2 80 83 85.6 during February as is usual in that month. While larger than West. Nebr.·-··· 64 87 82.8 77 85 88.1 a year ago, shipments were sharply below the average volume West. Kans .. _... 52 50 70.8 78 82 85.4 75 80.4 83 84 87-5 85 87 88.6 for February during the past ten years. The countryward Colo.·-··············· 75 62 67.9 71 74 76.1 movement of cattle represented but 63.1, calves 77.8, hogs 18.6, Okla................... 60 N. M................. 77 86 82.1 82 89 85-1 86 90 86.1 and sheep 69.4 per cent of the average. Demand has been 17 West. states 67 77 78.7 77 83 83.0 81 86 86.o narrowed by recent declines in prices obtainable for animals WOOL: There was a decrease in the amount of wool shorn ready for market, high feed costs, and generally unsatisfactory in 1936 in all states in the District except Colorado. These deweather conditions. creases reflected principally a reduction in the number of sheep According to the Department of Agriculture, the feed situa- clipped as the average weight per fleece showed an increase tion on March I was apparently little, if any, better than two over 1935 in Wyoming and New Mexico and was unchanged in years earlier following the 1934 drought. While there was an Nebraska. In Colorado, both the average weight per fleece and appreciable improvement over two years ago early in the winter, the number of sheep clipped increased. supplies of feed grains, by-product feeds, and hay have been The production of shorn wool and the number of sheep shorn, used up at a faster rate than during the winter of 1934-35. A reported by the Department of Agriculture: higher general level of live stock prices than that two years ago WooL PRODUCTION SHEEP SHORN has tended to encourage heavier feeding, and winter weather 1936 !.W: !.2Jj 2 !.ili ~ has been much more severe than it was two years earlier. The (In thousands of head) (In thousands of pounds) carryover of corn at the end of the present season was expected Colorado........................ 13,062 12,216 13,122 a:,661 1 ,555 1.527 to be of record small proportions. Kansas .......................... 412 3,962 464 3,419 3,045 53 1 ,1,200 1,242 8,I96 1,252 8,869 Estimates of the Department of Agriculture indicated that Missou · 7,989 362 400 363 there were 755,000 lambs left in feed lots in the Northern Nebraska...................... 2,776 3,029 2,730 2,240 2,520 :2,290 New Mexico ....•-··········· I5,9o4 16,030 I7,I36 Colorado, Arkansas Valley, and Scottsbluff sections on March Oklahoma·---··············· 1,424 1,870 1,296 220 160 185 6 as compared with 910,000 a year ago and 920,000 two years Wyoming...................... 29,95 2 3°,I53 33,212 3,120 3,496 3, 1 74 --------ago. Shipments from these areas totaled 2,255 cars of lambs 9,I27 9,863 74,I52 76,129 79,III 9,384 since January 1 compared with 3,138 cars in the same period Seven states United States·----······· 360,327 364,663 370,329 45,663 45,4'97 4b,665 last year and 2,440 cars two years ago. The early spring lamb crop in Missouri was late. Only 21 Meat Packing per cent of the ewes had lambed by March I as compared with Operations at meat packing plants in the District, as reflected an average of 34 per cent for that date. Feed supplies have been by packers' purchases at the six principal live stock markets, short and the weather rather unfavorable until near the end of direct shipments of hogs included, declined seasonally ,during February. Pastures were late and green feed from grain fields February. Calf slaughter was larger than in February of last was lacking. year and exceeded the average volume in that month during RANGES AND LIVE STOCK: Following a marked decline the past ten years by 29.8 per cent. The slaughter of other meat in January, the condition of ranges, cattle, and sheep showed animals was smaller than a year ago, cattle falling 6.4, hogs little change during February. Heavy supplemental feeding 54.6, and sheep 13.0 per cent below the average volume. Hog of live stock continued rather generally throughout the District slaughter was at a new low level for the month of February. Cattle Kansas City.............. Omaha........................ St. Joseph.................. 77,496 74,490 Denver._..................... 25,2127 30,342 120,367 Oklahoma CitY·-······· Wichita...................... 22,251 PEBRlJARY MOVEMENT OF LIVE STOCK IN THE TENTH DISTRICT RECEIPTS STOCKER-FEEDER SHIPMENTS PURCHASED FOR SLAUGHTER Calves Cattle Hogs Calves SheeF Cattle Calves Hogs Hogs Sheep Sheee 19,693 *134,853 I2I,284 21,5u 1,018 2,169 I7,220 *124,685 102,178 xo,437 46,073 8,206 1,222 u5,I25 III,745 8,374 8,144 88,913 85,156 9.4 27 54,300 43 2 2,251 87,129 5,418 318 7,066 271 18,291 5,216 49,969 78,231 47,163 1,260 262 14,5°5 4,2fl ,a. 40,243 1·88,953 4,382 14,349 2 2,96o 31,568 35,9 9 x-0,352 25,841 7,968 20,510 6,548 18,047 6,7z9 3,881 _.m _z1,954 20,056 9,095 9,568 4,463 8,339 ...j • z50,173 53,023 384,605 February 1937·---•···· 52 9,554 349,418 January 1937•----····· 74,555 474,4122 565,583 288,078 42·8,280 540,366 44,1284 February 1936·-··--··· 2 Months 1937....... ,.. 859,027 1,095, 137 1127,578 599,591 108,260 1,001,159 1 , 053,5 1 5 2 Months 1936_ ........ 666,467 *Includes ro5,509 hogs shipped direct to packers' yards. 36,35o 7°, 139 33,770 106,489 109,492 4,969 10,764 1,406 15,733 u,185 1,983 3, 1 59 2,940 5,14z 8,073 40,382 57,8x3 31,189 98, 195 77,088 160,628 198,679 184,872 359,3o7 4°5,7 24 44,55 1 58,769 41,660 103,320 94,890 415,703 345, 21 4 312,201 353,182 317,066 665,383 824,820 ~'l,314 337,256 75 2,959 7 THE MONTHLY REVIEW Commercial slaughter in the United States, while seasonally smaller than in January, was generally maintained at a level above a year ago. Cattle slaughter was 12.0, calf slaughter 19.8, and sheep slaughter 12.3 per cent above the February tenyear average, but hog slaughter continued 2.5.6 per cent below the average. Live stock slaughtered under Federal meat inspection in the United States: Cattle ~ February 1937·--············· 708 January 1937·--··············· 867 February 1936·--············· 742 Two months 1937·- ········· 1,575 Two months 1936.........._ 1,648 NOTE: Slaughter for Government Calves Hogs (~sands o ~ ) 437 2,842 484 3,519 405 2,319 921 6,361 870 5,747 relief purposes excluded. 1,315 1,700 1,314 3,015 2,854 Cold Storage Holdings Notwithstanding greater than seasonal decreases in United States cold storage stocks of beef, lamb, poultry, miscellaneous meats, cased eggs, and butter and less than the usual seasonal accumulation in stocks of pork during February, holdings of these commodities continued substantially above the average for the comparable season during the past five years. Stocks of frozen eggs and cheese showed less than the usual seasonal decrease, while stocks of lard increased at a considerably higher than seasonal rate, holdings as of March I amounting to nearly twice the five-year average for that date. The high level of live stock slaughter during the past year was reflected in total holdings of meat which were the largest for any month since May 1, 192.9. United States cold storage holdings, reported by the Bureau of Agricultural Economics: *Mar. l !.21Z Beef, lbs .................... Pork, lbs._ ........................................ Lamb and mutton, lbs ................... Poultry, lbs Miscellaneous meats, lbs ............... Lard, lbs·-·-····································· Eggs, cases·--··································· Eggs, frozen (case equivalent) ...... Butter, creamery, lbs ..... ................ Cheese, all varieties, lbs ................. *Subject to revision. 167,061 773,897 9,825 l 57,93 2 124,752 202,46o 322 984 20,657 93, 11 7 M ar. l Mar. l Feb. l 5-Yr.Av. 19.16 19.17 (In ~ sands ~its) 86,928 69,914 180,916 654,738 451,418 738,5.22 2,518 10,491 2,563 95,889 178,304 85,792 68,836 69,848 132,275 103,202 182,709 78,7 25 II'l 13 469 1,334 l,l 17 1,325 16,001 8,217 42,734 102,112 66,845 79,556 Coal The production of bituminous coal in the District declined by less than the usual seasonal amount from January to February but fell 5.3 per cent below production in February of last year when output was stimulated by unusually low temperatures. However, output for the first two months of the year showed an increase of 4.3 per cent over that for the first two months of 1936. Bituminous coal production, reported by the Bureau of Mines: *Feb. 1937 Colorado.-- ······························· Kansas and Missouri ............. . N cw Mexico·--- - ····················· Oklahoma. ___ ........................... Wyoming.................................. 836,000 786,000 192,000 190,000 642,000 Increase or decrease as compared with Jan. 1937 ~ (In tons) -22,000 -106,000 -22,000 -52,000 +4,000 +37,ooo -104,000 -85,000 -36,000 -43,000 Six states.................................. 2,646,000 -282,000 -147,0CXJ United States·----··················· 41,740,000 +800,000 +586,000 *Estimated from the weekly reports of the United States Bureau of Mines. Petroleurn Daily average output of crude petroleum in the District continued~to increase during February, although gross production declined because of the shorter month. Production was 19.3 per cent greater than in February of last year and exceeded the February ten-year average by 2.3.2. per cent. Output for the first two months in 1937 was 2.0.0 per cent ahead of that in the first two months of 1936. 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, 1937, and February, 1936: February 1936 January 1937 Gross D.Av. Gross D. Av. (In t~nd~rrels) 604.l 14,948 18,767 6o5-4 51 5·5 138.6 4,0:20 171.0 178.4 5,3 00 51.1 46.4 33· 1 IA39 959 February 1937 Gross D.Av. Ok!ahoma. ___............ Kansas ..... ................ Wyoming............ ..... Colorado...-............... New Mexico·-- ·-··-···· 16,914 4,996 Five states...... ......... United States.......... 26,165 934.5 91,770 3,277.5 1,429 II0 2,716 3.9 97.o Il2 2,774 3.6 89-5 28,392 915.9 98,567 3,179.6 Il:2 3.9 1,887 65-1 21,926 756.2 82,120 2,831.7 Increased refinery operations to meet the unusually heavy seasonal demand for fuel oils have more than absorbed crude oil output, stocks of crude showing a further small decrease in Oklahoma and Kansas and a fractional decline in the Rocky Mountain area during February. Increased refinery operations also resulted in a rather large pre-seasonal rise in gasoline stocks, and gasoline prices were accordingly weak although the market was somewhat firmer by early March. Mid-Continent crude oil prices were unchanged at schedules posted on January 2.8, ranging from 98 cents per barrel for oil testing below 2.5 degrees gravity to $1.30 for that testing 40 degrees and over. These schedules reflected a level of crude oil prices about the same as that in 1930 and the highest since that time. Field operations have recently been more active, particularly in Kansas and Oklahoma. Zinc and Lead Following a sharp decline in January because of unusually icy weather, shipments of zinc and lead from the Tri-State district increased substantially during February. There was a strong demand for both zinc and lead throughout the month and purchasers took all ore available. Output increased during February with the resumption of mining and tailing operations and the opening of new mills. At the close of the month there were 65 mills in operation, or the largest number in nine months. Zinc and lead shipments from the Tri-State c.iistrict, estimated from the weekly reports of the Joplin News Herald: ZINC ORE Oklahoma ....·-·················-· · Kansas .... .......................... Missouri ........................... . February 1937·--············· January 1937·--··············· February 1936·-·······-······· Two months 1937............ Two months 1936............ LEAD ORE Tons 20,616 20,310 2,9II Value 1, 809,882 801,957 122,780 Tons 2,204 2,i43 45 1 Value f,158,862 214,786 33,79° 43,837 33,468 30,312 $1,734,619 1,158,096 969,973 2,892,715 2,211,413 5,398 3,141 5,873 8,539 9,235 $4o7,438 217,591 282,5 23 625,o29 440,529 77,305 69,107 Zinc advanced $5.50 and lead $14.00 per ton at the Joplin market during February, zinc closing at $44.50 and lead at $8 5.oo per ton. This was the highest price for zinc in ten years and the highest price for lead since late in 1929. Comparable quotations a year ago were $32..00 for zinc and $50.00 for lead. The market situation of these metals has been changed materially by increased armament programs throughout the world. The sharp rise in prices since last fall has resulted in considerable field activity. Early in March there were more than 40 prospecting drills at work in the Tri-State field. 8 THE MONTHLY REVIEW NATIONAL SUMMARY OF BUSINESS CONDITIONS By the Board of Governors of the Federal Reserve System INDUSTRIAL PRODUCTION PERCENT PERCENT 140 140 130 130 120 I\. IU 120 \ 110 ) I/ 1~ 100 \ ~ 80 /V A \A. 110 J' 100 90 I\ A V \ I \~ V I\ ..,t'~I ro 60 80 ro 60 w w 1929 1930 1931 1932 1933 1934 1935 1936 :937 Index of physical volume of production, adjusted for seasonal variation, 1923-1925 average=l00. By months, January 1929 through F ebruary 1937. WHOLESALE PRICES PER CENT PER CENT 120 120 110 110 100 100 r"'"'\,._ so . Volume of production, employment, and trade increased more than seasonally m February and wholesale prices of industrial commodities continued to advance. 90 " 80 J. /' I'\_ 70 60 ..,. ~ _, 1,1 80 70 I 1929 1930 1931 1932 1933 The Board's index of industrial production, which makes allowance for changes in the number of working days and for usual seasonal variations, was 116 per cent of the 1923-1925 average in February as compared with I 14 in January and an average of 115 in the last quarter of 1936. At steel mills activity continued to increase in February and the first three weeks of March and, although the growth was somewhat less than seasonal, output currently is at about the peak level reached in the summer of I 929. Automobile production, while fluctuating considerably with strikes at important plants, has been larger for the year to date than in the corresponding period last year. Output of plate glass in Februa ry showed a sharp rise from the low level of the two preceding months when strikes curtailed production. At textile mills and shoe factories activity continued at a high level, while output at meatpacking establishments declined somewhat further. Mineral production increased, reflecting chiefly greater output of coal and a further rise in crude petroleum production. Value of construction contracts awarded this year, according to the F. W. Dodge Corporation, has been considerably larger than a year ago, reflecting an increased volume of private residential building and other types of private construction, while the volume of publicly-financed work has been smaller. Factory employment and payrolls increased from the middle of January to the middle of February by more than the usual seasonal amount. The number employed in the machinery industries increased considerably and there were smaller increases at automobile and plate glass factories . In the nondurable goods industries as a group there was a seasonal rise in employment. 60 i 50 PRODUCTION- AND~ EMPLOYMENT 50 1934 1935 1936 Index compiled by the United States Bureau of Labor Statistics, 1926= 100. By months, 1929 through 1931 ; by weeks, 1932 to date. Latest figure is for week ending March 20, 1937. MEMBER BANK RESERVE BALANCES BILLIONS Of DOLLARS DISTRIBUTION 1937 BILLIONS OF OOLL.\RS 8 8 Department store sales increased from January to February and the Board"s seasonally adjusted index advanced from 93 to 95 per cent of the 1923-1925 average. Sales at variety stores also increased more than seasonally, while mail order sales, largely in rural areas, showed less expansion than is usual at this time of year. Total freight-car loadings increased in February and the first half of March, owing in part to seasonal influences. COMMODITY PRICES The general level of wholesale commodity prices advanced from the middle of February to the third week of March, reflecting principally further substantial increases in the prices of industrial materials. Prices of iron and steel, non-ferrous metals, lumber, cotton, rubber, and hides advanced considerably and there were also increases in the prices of cotton goods, paper, and furniture. Wheat prices have advanced in recent weeks following a decline in the latter part of February. 1932 1933 1935 1934 1936 1937 BANK CREDIT Wednesda_y figures of total member bank reserve balances at r-ederal Reserve 1:-anks, with estimates of required reserves, January 6, 1932, through March 24, 1937. MONEY RATES IN NEW YORK ·. =---~--~-~--~-~--~-~ PER CENT 7 PER CENT 7 4 MONEY RATES ·--.... . .J l..,\..f.·1.___ 1931 19~2 1933 1934 On March 1, when the first half of the recent increase in reserve requirements went into effect, excess reserves of member banks declined from $2,100,000,000 to about $1,300,000,000. In the next three weeks, which included the March tax collection period, excess .reserves showed moderate fluctuations around the new level. In connection with the increase in reserve requirements there were some withdrawals of bankers· balances from city banks but practically no borrowing by member banks from the Reserve banks. Holdings of United States Government obligations at reporting member banks in leading cities declined by $280,000,000 in the four weeks ending March 17, a part of the decline reflecting large maturities of Treasury bills. Commercial loans increased further at reporting banks and on March 17 were above last year·s high level reached on December 30. Loans to brokers and dealers in securities increased sharply. ~ j ~ . ;_-· j ; ,•.• • ,-:zQ -~ t .. .!'.£1 ..•·, ., ~ ~ 1935 1936 1937 Minimum rate · on rediscounts for and advances to member banks by F ederal Reserve Bank, and weekly prevailing rates on prime commercial paper, 4 to 6 months, and prime bankers• acceptances, 90 days. For weeks ending January 3, 1931, through March 27, 1937. Since the beginning of March the rate on 90-day bankers' acceptances advanced from 5-16 of I per cent to 9-16 of I per cent and commercial paper rose from a flat 3-4 per cent to a range of between 3-4 and I per cent. Bond yields, which until recently had been near the extreme low point reached last D ecember, advanced by between 1-4 and 1-2 per cent and on March 24 were at about the levels prevailing early in 1936.
@FedFRASER