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Tke Bullo!in is is8Ucd for the in/Mmatio-» of Mtmb•r B,mkB and tllo B...,;,...,, Jntoruts of thi• Di8t,-ict. If copy •• roceiv•d m adv,mce, it sho,.ld be ..,,.. derotood it is intended a., a 1pecial co,.,.IOB!I, and it., cont.ml• ar• co1'j\dential. Tlli8 copy iB 1,ot to be rele~8od for publicati<Jn beforo APRIL 25, 191~. FEDERAL RESERVE BANK OF KANSAS CITY ASA E. RAMSAY, C. K. BOARDMAN, CHAIRMAN SOARD OF' DfRECTO'RS ASSISTANT FE'.05:RAL RESERVE AGENT A.NO F.E:OERAL RESERVE" AGENT REPORT OF CONDITIONS IN DISTRICT No. 10, FOR THE MONTH OF APRIL, 1919. Kansas City, Mo., April 25, 1919. I N spite of the many obstacles that stand in the way of a general stabilization of business in the Tenth Fe<lera.1 Reserve District, present conditions indicate that material progress is being made day by day as the season advances and the consummation of peace terms among the nations involved in the war is near at hand. A more hopeful spirit seems to pre\·ail, and in most lines of industrial activity things have assumed a cheerful aspect. Unpara1leled prospects for bumper crops, together with the reopening of avenues of foreign trade, as,suring a good market for all products at good prices, i,s lending encouragement to other lines and aiding in the process of readjustment. -Under this influence mercantile trade and manufacture are strengthened to the extent that the people are buying more freely for their needs. The petroleum industry is making rapi<l strides, tmder weather difficulties, toward a peace-time basis of production and distribution. Coal mining is progressing, with an output about equal to the demand. But metal mining is meeting with a so1newhat perplexing situation, due to inability to maintain high cost of production with low prices for products. Still, operators are optimistic, believing tliat an e\'entual stabilization of the American metal market will come and it will bring satisfactory results. Building and public improvements are making good g,tins over the war-time period and housing demands are, to a considerable extent, to be relieved this season. The labor situation on the whole is easier and there is a feeling of confidence that there will be no lack of employment for all workers for months to come. Prices show no apparent sign of a general decline,, and the people have about made up their minds that prices of commodities, as well as of labor and materials, are to contintte for some time on a war basis. Financial. Bank clearing of seventeen clearing house cities in the Tenth Federal Reserve District were 4.4y'o below the clearings for March of last year. For the first three months of 1919 the clearings were less than 1% larger than for the same three months in 1918. The reports for March follow: Mch., 1919 l'l'!ch., 1918 Kansa_, City, :.lo... .... $ 826,567,335 $ 918,667,804 293,547,000 Om aha, ~ebr. . . . . . . . . 286,314,420 94,388,879 Denn:r. Colo. . . . . . . . . 122,556,601 100,369,310 St. J oseph, 1'.lo. .. . _. ... 82,487,218 Tulsa, (Jkla. . . . _... _. -J.6,140,366 35,522,348 Wichita, Kans. __ . . . . . -1-5,609,833 ~.352,488 38,602.386 -i-2,911,000 O klahoma City . . . . . . . . 24,259;369 L incoln, Nebr. . . . _ . . . . 27,939,282 15,592,288 Topeka. Kans... _. . . . . 13,596,177 11,704,955 Muskogee, Okla. , .. _. . 11,144,484 8,763,881 Joplin, I\lo. . . . . . . . . . . . 6,295,000 5,289,289 Fremont, Nebr. . . . . . . . 4,419,724 3,575,505 Colorado Springs, Colo. . 3,632,245 2.980,727 Pueblo, Colo. . . . . . . . . . 3,170,866 3,298,539 Hastings, Nebr. _ . . . . . . 2,775,569 2,240,158 Kar1sas City , Kans.. .... 2,629,228 1,839,245 Lawrence. Kans. . . . . . . 1,932,320 Total, 11arch .... _. _ .. $1,530,121,669 $1,600,994,171 4,225,090,019 1 hree months _ . ... _ .. 4,248,487,598 Postoffice receipts in March increased 17.5% over those of March, 19.18, as the reports from the follow ing cities indicate: March, 1919 :\larch, 1918 Kansas City, ::.\fo........ . $ 441,055.45 $ 390,862.45 Omaha, Nebr. . . . _. _ .. . _ 207,382.36 186,899.15 Denver, Colo. _ . _. _.. _ . . 184,401.59 182,882.92 42,047.87 Tulsa, Okla. . . . . . . . . . . . . 46,065.20 Oklahoma City, Okla. __ . . 84,925.57 81,806.46 44,972.57 St. Joseph, Mo. . . . . . . . . 42,945.66 Topeka, Kans. ___ . __ . _ . . 52,877.31 49,901.96 26,264.18 Kan::;as City, Kans..... . . 25,777.24 :\-Iuskogee, Okla. . _ _. _ . . . 19,238.58 16,983.84 17,561.64 Colorado Springs, Colo. . . 17,642.00 Total receipts, March .... $1,122,310.96 $1,040,183.04 The demand for loans not only continues strong, but has every indication of becoming heavier. Rate,, are firm, with a tendency to slight increases. The feeling of uneasiness which prevailed in some sections before the official announcement of the Victory Liberty Loan has been dispelled by its favorable terms and from all over the district reports indicate general confidence that the loan will be fully subscribed. Agricu1ture. '\Veather conditions were favorable to early spring vegetation and farm work through the greater part of March and up to April 10, when heavy rains fell over the eastern and southern sections of the district and heavy s~ows on the plains and mountain areas. Cool and cloudy weather followed up to the 19th. There was some freezing and frosts were reported over the greater part of the district. Reports, howe\·er, indicate that there was little damage done as little of the planting ,vas up and it was not cold enm1gh to injure the fruit. The unfavorable weather has delayed the season at least ten days. "\,Vinter wheat continues to make excellent progress and no damage is yet reported from the weather conditiom;. In many sections the growth of ,vheat i,; Yery rank and farmers are still pasturing it. \Vhile some corn has been planted in the southern half of the district the weather and soil conditions han retarded the v,rork. Oats and barley are· about all so,vn and early seeding of these cerea_ls is doing well. Movement of gra in t o the markets is in smaller ,-ol wne, due to the heavy marketing iu the fall and early winter, and grain stocks are diminishing. \iVheat receipts at t he Missouri r iver markets, while about 50% la rger tha11 at th is time 1as t year, are .small in comparison with receipts at this time in 1917 and 19 16. Impr ov ed domestic flour demand and opening of foreign markets to American wheat sent the price up to $2.65 at the end of March, the highest price yet reached at that date for w h eat of 1918. This is an advance of 48c@S2c per bushel over the price of wheat one year ago. Receipts of corn in March at the market c1t1es on the :.Vlissouri river v,ere only about one-fourth the volume df March of last year. A good part of the receipts came from Iowa and South Dakota and was distributed to sections which suffered from last year's drought. Corn prices in March reached their highest point s-ince last October, being $1.57@1.59, or about the same as the March, 1918 prices. Oats receipts were about 10% below the receipts of Nlarch, 1918, and prices were higher than at any time since January, highest prices in l\farch being 66¼@67c as against 90¼@9lc in March of last year. Flour milling operations since the beginning of March have continued to show improvement, the output of mills of the district reporting being close to 50% above the total for the corresponding periocl in 1918. - Live Stock. The movement of liYe stock to the markets at Kansas City, Omaha, St. Joseph, Denver, \Vicllita an<l Oklahoma City in the month of 1-,farch reflect'> a diminution of the supplies of all meat ani111a b from the marketings of March, 1918, while the me,, ernent of horses and mules to these markets was nearly j0%, less in March than in the corresponding mcnth last year. Combined receipts of all animals at these markets are here given for March and for the first three months of 1919, ,vith figures for the same period in 1918; },.farch Three Months materialized during April, owing to the severe wind and snow storms in mid-April which c\iu great clarn,,ge to rigs and retarded operations. Daily production ha:; been running slightly under 300,GCJ(J barrels in the Kansas-Oklahoma fields since the fast ,)f )larch, tht total output of these fields for l\farch 1Jei-.tg a littie c,-er 9,000,000 barrels. More wells were completed in Kan:;as and Okl.i1,oma in :\larch than in February, but tbere ,vas a falling off in nev-r dailv production from the Febrnarv nccord. 'rhe March field summaries are: • Completions Production Dry Gas 203 657 14 6,055 30,050 1,725 45 176 2 60 3 March, 1919 ... 874 February, 1919. 871 37,830 50,373 223 240 78 78 Kansas .. Oklahoma . . \;Vyoming . . .. 15 The number of rigs and \-veils drilling at the close of March in the oil fields of the three states was 23 in excess of the number at the close of February. The number at the clo:oe of 11arch in each of the three states ,vas: Kansas 496, Oklahoma 1,419, "\\'yarning· 303. Mining. Abundance of labor and excellent weather conditions have resulted in mmsual production in spite of efforts to curtail the output of zinc and learl ore,; in the l\.iissouri-Kansas-Oklahoma district. _-\long \\'ith better working conditions there has come an increa,;ecl efficiency of labor with the return of the soldiers. There has also ueen a slight reduction iu the cost of mining, particularly on hard iron and po,Y<ler, with a prospect of further reduction. 1919 1918 1918 462,482 1,413,2-S4 1,410,·,88 .... 384,650 Cattle 98,670 65,192 19,396 Cah·es ...... 28,714 Lead ore:; at the beginning of March aYerager! Hogs ....... 909,533 1,030,527 3,505,688 3,0j8,7.3S · $62.00(?i,-65.00 but \\'as reduced to $60.00@61.00 by the 977,381 1,484,922 end of the month. 'l'he high price in the early part 534,287 Sheep .. .... 481,067 76,910 of the month was the result of local competition and 23,152 42,599 12,0:H Horses&:'-.-! ul es after this passed the market became more normal. ..\ steady rise of hog pnces is noted since the The demand for lead ores remains firm and tl1ere is guaranteed minimum of $17.50, Chicago basis, \Y,tS re· no an;umulation of surplus. 1919 A,·erage prices, which in~Ja1mary and Feb· rnary at .i\l issouri H.iYCr market" were Sl7 .15 to $17.35, rose to $19.04 at the elo,:.e of 1farch ai1~\ by April 12 were $20.09. Ruling prices uf heavy steer~ at the en<l of .March were $15.00@18.25_. a shack lower tha.n at the end of Febrnary, but $2.25 to $4.10 hig-her than at the end of l\rarcli, 1918. Lamb.-:, which in January an<l February were selling at $16.60 up to $18.00, rose to $19.50 early in 1Iarch a;1<l from the middle of 11Iarch to April 15 were selling at $20.00 up to $20.50. 1110\·ed. 1/, inc ores showed a cl 1Jwnward tendency in l\larch, the a,·erage price dropping from $40.00@45.00 at the beginning· of the montli to $37.50@42.SO at the close. Calamine ures containing 40% zinc were steady at $2S.00@27.50 per ton. Shipments of zinc ores -,,,,,ere comparati\·ely heavy throughout the month. Petroleum. 1n the Colorado mining districts conditions an: ~omewhat unsettled. Low price of base mctal:s, ·with steadily increasing costs of living, has put operators in a serious dilemma, for they can no longer pro• duce with profit at present cost of labor. An announced reduction of $1 a day in wages at Leadvilk: ha,; been met with threats of a strike by miners. The large molybdenum interests at Climax have suspended ,1perations as have also tungsten operations in Boulder county. On the other hand there is slightly more activity in Gilpin and Clear Creek counties. The general outlook is not encouraging unless there i,; ~ome radical change in the metal markets. ~\larch operations in the oil fields were about the ,;arnc as operations in February and it i.:: -nGt exµec. te<I the improYement promised for early spring will ;,a\"c Coal operations ha\·e shown no apparent increased activity and production is close to 50% normal with no apparent increase in demand. Purchases by packers in March were 189,491 cattle, 26.183 calns, 684,850 hogs and 305,621 sheep. The report,; inclicate the p_ackers' operation;; were red t,ced 9% on cattle, 1 % on hogs, 5.7 % on sheep and in· creased 9% on calves as compared with the pllrchases :"o r slaughter in :March, 1918. Building. A marked improvement_ in building activity was made in 11arch over the reports for January and February and also over the .corresponding month in 1918. Reports from th~ building departments of the principal cities of this district indicate there will be a general revival of building to meet long deferred demands. The report;; of thest; cities for March are here shown ·with percent of gain or loss as compared with the reports for March, 1918: Permits Kansas City, Mo.. . . . . 342 Denver, Colo. . . . . . . . 251 Tulsa, Okla . . . . , . , . . 214 Omaha, Neb ... , . . . . . 145 Ok)ahoma City. Okla.. 108 Wichita, Kas. .. . . . . . . . 100 Lincoln, Neb . . . . . , . , 76 Pueblo, Colo, ..... , . . 72 St. Joseph, ~do.. . . . . . SO Kansas City, Kas.... . 38 Colorado Springs, Colo. 29 Topeka, Kas. , .. _ . . . . 27 Joplin, :1,,1o. .•...•••• , 23 Muskogee, Okla. . . . . . 19 Total, 14 Cities. _ .. . . 1,494 Three months, 1919 ... 3,034 Three· months, 1918 . .. 1,833 Est. Cost $ 505,330 434,500 479,110 Pct. Gain or Loss +120 +151 - 9 385,642 + 4o 448,410 369,410 93,552 37,695 14 81:l + 46 +219 - 87 - 68 20,154 +80 25,700 - 57,955 28,383 108,13S 53,660 $3,047,636 6,254,532 + ~ 8 +375.5 +81.3 + + 35 4.4 5,985,246 \\"hile reports from the larger cities show building acti\'ity is making good progress toward getting back to 11ormal, the reports from the smaller cities and towns indicate a general resumption of building. Public Improvements. There are indications of a general revival, but most of the improYement in the cities is work that has been hcl(\ hack on account of Government restrictions on the use of materials. ~ew highway construction plans call for more good roads building than has ever been recorded for any pr~Yiuns year, due to the demands for better high\rn_ys that haYe followed a nation-wide educational propaganda, amt also to the need of assuring the re, turning soldiers of full c::mployment when they arc\ hack in ci\·ilian life. Nearly all of the state legislatnrcs of this district have enacted laws providing for: :Lpprnpriations of large sums of money to meet the Cm·ernment's liberal appropriations in aid of good road:--. The lumber and material market shows a firmer tone, but no marked reduction:; in prices have yet been reported. In some lines of the lumber trade adrnnces of SOc to $3.00 over :\larch 1 prices have heen made. 1Ianufacturers report sales of yellO\v pine arc np to the output and others say they will ~ell their entire output. Although dealers agree that lumber and building matrials are high, they insist that the ad\·ances over pre-war prices have not been as large proportionately as the advances in most other lines of trade. Labor. The situation 111 this district respecting labor aml the re-employment of soldiers and sailors returning to ci\·ilian life is causing little uneasiness. ·with manu- facturing and building act1v1ty rapidly approaching normal, public improvements in process of early resumption, and farm work opening up for the season, it is believed all surplus labor will readily be absorbed. Already at this date there has been a marked improvement in the situation. Besides there are many agencies co-ordinating throughout the district in an effort to obtain employment for every returned soldier and !-;ailor. Along with this work are movements for creating work for the men who have been in service in public improvements in cities and in highway c~nstruction. \Vith the wheat harvest only five or six weeks off, there is also speculation as to whether by that time there will be men enough to perform the work. It is predicted that one of the results of the war will be the turning of a great many of the soldiers from their former avocations to farming. It is said the _rugged _life of the soldier in camp and in the trenches has awake;1ed a desire on the part of many of them to get out in the open and these ,viii obtain farms wherever possible. A number of small strikes are pending in various parts of this district, some of which are in proce,;s of adjustment. A strike on April 14 of several hundred coal miners in some of the mines in Kansa;; Oklahoma and Arkansas, resulted from demands fo; a change in ·working conditions. There are prospects of an adjustment of the controversy, ,vhich is not one of wage dispute. Mercantile. \Vholesale merchants and jobbers report a slight improvement in trade, although the volume of their sales does not meet expectations. It is plainly apparent that retailers, as well as their customers, are still haying for immediate needs against possible reduction in price:-, and- the tendency seems to be to hold off as long as they can to await development~. Business results, as viewed bv mail order houses indicate that the people are not buying as freely as ;heir needs ·would justify, that small articles are being bought in profusion, but that people are hesitatingto purchase articles of greater prices. Departme11t stores and retailers in most lines report business ver.r hrisk and getting heavier, but sales in the aggregate ha\·e not reached the anticipated volume. There is ;i feeling that when the wheat crop is fully assured money will be spent more freely and purchases will be larger. \Vhile there have been small price concessions in some lines of manufactured and raw products tht:se haye been more than offset by recent advances in foou. prices: \Vhile groceries, provisions and drugs continue in strong demand, it is observed that there is larger buying of both men's and woman's wear of all kinds -lines in which there were slov,. sales during the war. Shoes and staple dry goods show an improvement. Hardware and paints are in better demand because of increased building activity. Automobiles anJ automobile accessories and also musical merchandise -nuder the ban of war, are beginning to resume their normal activity. Collections in all parts of the district are reported fair to excellent and the general business tone is one of increased confidence that the near future "''ill brin-:r a "complete stabilization. · '' Statement of Condition of the FEDERAL RESERVE BANK OF KANSAS CITY INCLUDING BRANCHES At close of business April 18th, 1919. RESOURCES Gold with Federal Reserve Agent ....................... Gold Coin, Certificates & Redemption Fund... . . . . . . . . . . . . Credit Balances (Gold Settlement Fund) .. ,. . . . . . . . . . . . . . Legal Tender Notes, Silver Certificates and Subsidiary Coin. . $ 35,371,950.00 . 1,161,342.20 . 29,993,668.58 . 80,156.00 Total Reserve Cash .......... ...................... . $ 72,607,116.78 Total Non-reserve Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . Commercial Paper Rediscounts. . . . . . . . . . . . . . . . . . . . . . . . . . . Member Banks Collateral Notes. . . . . . . . . . . . . . . . . . . . . . . . . . Acceptances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U. S. Bonds to Secure Circulation . .. : . . . . . . . . . . . . . . . . . . . . U. S. Certificates of Indebtedness to Secure Circulation. . . . . . Other U. S. Bonds......................... .... . ...... . Other U. S. Certificates of Indebtedness. . . . . . . . . . . . . . . . . . . Bank Premises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Due from Other Federal Reserve Banks. . . . . . . . . . . . . . . . . . . Due from Depository Banks & Trust Companies . . . . . . . . . . . . Due from Branches . . . .... , . . . . . . . . . . . . . . . . . . . . . . . . . . . . All Other Resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,429,775.31 38,010,846.29 50,829,864.90 5,479,351.29 8,000,000.00 5,820,000.00 867,300.00 193,000.00 400,000.00 9,408,555.69 16,689,016.73 3,222,220.43 1,490,479.83 Total Resources .......... .. ............. ... . ...... $220,447,527.25 LIABILITIES Capital Paid In ........... ·............... .............. $ 3,747,750.00 2,421,426.71 Surplus . . . . . .. . ........................ ..... . .. . .... . Reserve Deposits, Net .................... ............. . 72,431,068.24 6,283,688.13 V. S. Government Deposits, General Account ... . . . . ... . .. . U. S. Government Deposits, Special Account ............ . . . 16,689,016.73 Federal Reserve Notes Outstanding ....... .............. . 103,168,735.00 Federal Reserve Bank Notes Outstanding ....... .. ..... . . . 13,708,000.00 1,997,842.44 All Other Liabilities .... ..... : ... .. ..... .. ... .... ..... . Total Liabilities ....... . ............. . ... . ........ . $220,447,527.25 CLEARINGS Total Clearings for Week .... : . ....... ... . . .. . ... . ...... $168,330,837.75 Total Number of Items handled . . . . . . . . . . . . . . . . . . . . . . . . . 495,466 MEMO: C<;mtingent liability as endorser on bills rediscounted .... .-... $ 10,000,000.00
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