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This Copy Shall Not Be Rehased for Publication Before
MAY 2nd, 1918
FEDERAL RESERVE BANK OF KANSAS CITY
ASA E. RAMSAY,
C, K. BOARDMAN.
CHAIRMAN. BOARD OF DIRECTORS
AND FEDSRAL RE3ERVE AGENT.
ASgISTANT
FEDERAL RESERVE AGENT
REPORT OF CONDITIONS IN DTSTRJCT NO.
May
Issue
of
lQ for the
the
FEDERAL RESERVE BULLETIN
,.
April 20,
1918.
The wheat movement continues very small and" is far below normal for this time of year. Receipts,
which for the past month on the local market were only one-fourth of those a year ago, are insufficient
to keep mills running up to their orders for flour. Also, local market shipments were
a
Agncurture
--!---tr--^ but one-fifth of thos"e f6r March 1917. Data obtained for 65 mills in this dlistrict shows
they were running at but 56 per cent of capacity for the past month, because of the great difficulty in
securing wheat. Their output, which decreased one-fifth under the conesponding month last year, was
largely taken over by the Government for the army and navy, or for erport to the Allies. Wheat
stocks on the flour district markets decreased three-fifths during the month.
The movement of corn has been very large for this time of year. Local receipts were four times
greater and shipments more th.an double those of March a year ago. Prices have been maintained on an
unusually high level, chre to the large dernancl for cornmeal and corn flour as wheat substitutes. Alt
grain usecl for this purpose is selling higher than the Govemment's fixed prices for wheat. The visible
supplies of corn on district markets increased over one-half during March.
The genelal eondition of wheat is greatly improved. Recent rains have gr"eenecl up the crop in many
sections. The present prospects, with continued favorable rveather conditions, are for a crop more than
double last year's short yield. Although rqports show a large wheat acreage abandoned, principally in
Western Kansas and Oklahorna, the wheat outlook on a whele is much better than was expeeted from
the unfavorable conditions last fall. Fields are being prepaled for corn with spring plowing about two
weeks aheacl of normal ancl planting started in many sections. Although sorne difficulty is experienced
in. seculing seed corn, inclications are that the acreage rvill be at least as large as last year's.
A very strong demand, has developed during the first half of this month. for fat cattle. Prices have
adyancecl about $1.50 per hundred weight to the highest levels ever known at this time of year, although
r ! DtocK
dr__r_ the receipts have been liberal, those for March increasing one-thircl over the same rnonth
Lrve
last yeari Normal supplies of thin cattle are going back-to the country, indicating that
feeders generally have conficlence in the future of the market, notwithstancling very high prices of feed.
The annual movement of cattle from Texas and New Mexico to the pastures of Kansas and Oklahoma
began the early
part of this month.
Prices of hogs are well maintained at high record levels for this time of year. Receipts at the six
principal clistrict markets for the past month gained one-fourth over last year. The average weight of hogs
on the local market is about 20 pounds heavier than a year ago, rnaking a substantial increase in the supply
of meats, but the clernand has increasecl corresponclingly and. reports of stocks of meat in cold storage
show only moderate gains. Slaughterings at the chief district markets increased 22 per cent for this
month compared with a year ago.
The movement of sheep to market continues smaller than last year, but for the past month receipts
were only 3 per cent less than for March 1917, compared with a 30 per cent decrease as reported for
February. Prices have advanced to new high levels.
The zinc ore procluction of the Missouri-Kansas-Oklahoma district for the first quarter of this year
compared with the same period last year, showed a decrease of nearly 7 per cent, while the value of this
decreased about 40 per cent. The average price for the metal as quoted on the market
rr:_:__
lvlrnrng output
epi.it tst was but $45.00 per ton as compared witti $zz.f O on the same clatd last year. Zinc pr:oduction has alreacly surpassed the consumption. Therefore, selling prices have droppetl $10.00 to $15.00
lorver than the cost of prod.uction, a fact which manifests a raclical change in working conditions, with a
probable shut-clown of rnany mines, or the cutting of wages which seems impracticable in present war
times. The output of lead ore for the first quarter was 28 per cent below last year's, and the value
showed a decline of nearly one-sixth. The top price quoted on leacl the 1st of April was $85.00 per
ton as compared with $115.00 a 1'ssr' t*t.
The mining situation in Coloratlo has shown no tendency to improve during the past month. The
three large plants now handling molybdenum ores are running at eapacity and are reported to be doing
excellent work. This state is now said to leacl the rvorld in the procluction of this metal.
The reduction of coal prices has been effected, which is usual at this time of year. The public is
being strongly urgecl to buy now and relieve a threatened condition during next winter, as prevailetl'with
the shortage of coal last winter.
There was a large increase in the number of wells completed in both Oklahoma and l(ansas cluling
the past month, attributed to the suclclen end of the winter, thus allowing renewed activities and the finishing of many wells which had been helcl up by the weather couclitions and neecled but little drillrr:t
vrt
ing. I(ansas completions increasecl two-thirds and- neto production 162 per cent over February,
while Oklahoma showed a gain of three-fifths in completions and 35 per cent in new production. Kansas'
new production was nearly 70 per cent larger than Oklahoma's. The total rnonthly production for Kansas
in March nearly doubled that of the same month last year, but Oklahoma's total production decreased
about one-tenth. The long expected advance in the price of 1\{ic1-continent crucle oil has finally materialized
the price now quoted at $2.25 per barrel, with a further adva.nce predicted by producers. 'Wyoming
operations took a drop in March, due chiefly to severe weather conclitions, which caused the general curtailment of field operations.
d
in the demand for lumber, and conditions on the market are
reported. as better. The general situation is a demand greater than the supply, which effect$ the maintenance of high prices. The large volume of builcting on the farms is great enough to
Lumber and
offset the lull in city building activities, where operations continue far below aormal.
C""rt
""ii"i
Reports of the number of building permits issued. in eleven cities in this distriict
for March show a decrease of one-third under the sarne month last year, with a cost estimated at a little
over 2 million dollars compared with 4 million dollars for March last year. The actual percentage decrease was 45 as against 55 for the entire Unitecl States.
There has been a marked improvement
The strike of local union labor, in sympathy with the launclry drivers who have been out for two
months, was brought about as predicted last month. Thousands of union men were out, includ.ing bakers,
brewers, street railwaymen, and the culinary and building crafts, and business throughout the
Labor
city was greatly curtailed during the six day period of duration. A mutually satsfactory agreernent was finally reached. and all strikers returned to work under practically the same eonditions that
existed before the strike. A small number of aclditional disturbances were reported in the district, which
were of little consequence and, therefore, quickly settled.
in the different states generally report that the feared shortage of farm labor will be
met. fn some sections boys are being urged to work on the farms in face of the lack of men
Organizations
successfully
laborers. 'Wages are generally higher than paid to the hands last year.
The matter of supreme importance in the dry goods trade remains, and- will probably continue to be,
that of securing merchanclise. Prices during this period are a matter of secondary importance. Retail
Mercantile business is generally reported" very good.. Clovernment clemands are, of course, given the
preference ancl fillecl first, and. what remains of the mill products is extended for civilian
use. Prices on all kinds of fabrics, wools and staple cotton goods continue to aclvance. Manufacturing is
active and. collections are good.
Purchasing in all the states wholly or partially within this clistrict during March was over 3 per cent
greater than during the same month last year, indebtedness decreased 2 per cent, ancl payment activity
was the same as for March 1917. The number of business failures for the first three months of this year,
compared with the corresponding period last year, clecreased nearly 18 per cent, but the assets of slch failures'lvere only 53 per cent oE the liabilities involvecl, as against 55 per cent a year ago.
tr'inancial conditions continue very satisfactory. I-:ocal clearings for March were over 900 million dollars, a gain of 66.5 per cent over the same month a year ago. All of the seventeen cities reporting in this
. I clistrict show an inerease in clearings over March 191?. These cities gained. 60 per cent for
F.
rlnancral
the past month and 50 per cent for the first three months of the year over the same periods
year,
last
comparecl with increases of only 5 and 4 per cent, respectively, for the entire United States.
Rates have remained firm and d.emands for essentials have been satisfactorily taken eare of by the banks.
Statement of Condition
of
TEDERAL RESERVE BANK OF KANSAS CITY, INCLUDING BRANCHES
,
At Close of Business April 19th' 1918
RESOURCES
Golcl with Fecleral Reserve Agent
Golcl Coin and Certificates... . ..
GoIcI helcl with X'oreign Agencies.
Oreclit Balances (Goltl Settlement I'und)
Legal Tender Notes, Silver Certifisates and Subsidiary Coin
$ 45,219,665.0O
Total Reserve Cash
Total Non-Reserve Cash. . .
Commercial Paper Rediscounts.
Member Banks Collateral Notes
.$ 79,426,891.54
,
30,290,762.5O
319,309.00
5,505,990.27
24,657,068.88
Acceptances
U. S. Boncls
with Circulation Privilege
Other U.. S. Boncls
U. S. Golcl Notes.
U. S. Certificates of Inclebtedne$i....
Due from Other Federal Reserve }Janks.
Due from Depository Banks ancl Trust Companies.
Due from Branches and Offices
Total Resources.
972,].55.04
2,625,000.00
14,479,652.06
10,391,267.14
8,003,090.00
859,100.00
1,374,000.00
3,129,000.00
5,210,413.5O
r9,574,560.38
4,994,76+.Lg
. . .$r77,545,797.92
.
LI,ABIUTIES
Capital Paicl in... .. .
Deposits-Net . ...
U. S. Gov. Deposits, General Account.
U. S. Gov. Deposits, Special Account.
Due to Clearing Members Deposit Account.
Fed.eral Reserve Notes Outstanding.
Fecleral Reserve Bank Notes
All Other Lriabilities
3,447,ooo.oo
$ 62,876,498.57
trl,eserve
7,2+3,704.25
.
Total l-riabilities . ... -.
19,574,560.38
10,314.00
76,123,415.00
8,000,000.00
270,305.72
$t77,545,797.92
CLE.ARINGS
Total Clearings for 'Week.
Total Number of Items Handled.
. . . . $106,578 ,977
.I2
138,167
@FedFRASER