The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
REVIEW
MONTHLY
Agricultural and Business Condtttons
TENTH FEDERAL RESERVE DISTRICT
VoL. 24,
APRIL
FEDERAL RESERVE BANK OF KANSAS CITY
o. 4
29, 1939
Business in the Tenth Federal-Reserve District
MARCH 1939
COMPARED WITH MARCH 1938
% DECREASE
!
-------i.--...
:
Denver•
COLO.
10 20
I
·--------KANSA
.•
30 40
Financial
_
:•
I
BUSINESS
INDICATORS
% INCREASE
40 30 20 10
l{ANS .
I
% DECREASE
% INCREASE
40 30 20 10
10 20 30 40
I
Bank Debita_
I
F. R. Bk. Clearinp.
•I
.-Mem. Bk. Loan,_
I
I
•-·
•
-·I
■
__Mem. Bk. Invest._
•
·-··-•--,.-•• - ....... _.!, __ _
3 MOS. 1939
COMPARED WITH 3 MOS. 1938
...Demand Depo1ita_
■
____Life Ins. Sales_
I
Trade
I
Rainfall for the first three
months of the year was about
normal and for the first three
weeks of April above normal. As
a result, the farm situation is better than seemed probable in the
early winter.
Wholesale sales are slightly below a year ago but retail sales are
little changed. The amount of
life insurance written is 2% below last year.
The slaughter of hogs is nearly
a third higher than a year ago
but that of cattle and calves is
much lower. Considerably more
wheat is being marketed than
last year but much less corn.
Lumber sales are 11 % higher
and building activity is about a
third greater than last year. Contracts awarded in March for
public works were appreciably
under a year ago with the result
that total construction was less.
Demand deposits in March
were. 5 % above last year and
bank investments about 3 %.
Bank loans are little changed.
I
•••
__ Dept: Store Sales_
•
I
•
I
I
•
■
•
I
I
_ Wholesale Sales_.
_
•
Marketing•
_ _Wheat _ _
_
_
_ _Corn _ __
_
- -· Cattle_
_
__ _ Calves _
_
_ __Hog, _ _
__ _ ..Sheep __
■
_
I
•
•
·-
l'ro,luction
--. _ _Flour _ _
_ Cattle Slaughter __
-· Calf Slaughter __
_ .H.og Slaughter _ _
.. Sheep Slaughter.._
'
Crude Petroleum_
.. Dituminous Coal_
Zinc Ore Shipments
Lead Ore Shipments
·-
Res. Award•- -
_ Value of Permits_
M iacellaneous
_ _ __Rainfall _ __
I
-53
_Qata _ _
Cmuitruction
■
I
___Lumber Sales_
_ Total Awards _
I
I
Retail Sales_
Cash Farm Income*
__ Employment__
-·-····· Pay Rolls ____
•For prevlou~ month
'
••
■
·■
I
I
+61
2
REVIEW OF AGRICULTURAL AND BUSINESS CONDITIONS
Principal items of condition of the Federal Reserve
Bank of Kansas City and branches :
Member Bank Operations
Loans and investments of reporting member banks
Change from
in the Tenth District showed little change from the
Apr.19
Mar. 15 Apr. 20
1939
1939
1938
middle of March to the third week of April. A further
( In thousands of dollars)
decrease in the volume of commercial loans and sharp Total reserves ..............................- 319,785
-5,507
-688
decreases in loans to brokers and dealers in securities Bills discounted.............................
424
+ 71
+7
Bills purchased.............................
16
Zero
Zero
and to banks were largely offset by the continued rise Industrial
advances......................
214
-2
-242
in real estate loans and "all other" loans. Holdings of Commit. to make indust. adv......
664
-25
+369
U.S. Government securities....... 132,140
+42
+7,513
Treasury notes declined further during this period Total
assets................................... 493,206
-4,605 +12,814
and there was a decrease in holdings of Government F. R. notes in circulation............. 168,510
-209
+3,146
bonds, but these declines were more than offset by Member bank reserve deposits... 226,560 -10,605 +1,719
Dollar volume of check collections rose seasonally
further increases in holdings of Treasury bills, of obduring
March and continues slightly above a year ago,
ligations guaranteed by the Government, and of
volume
for March and the first quarter of the year
"other" securities. Both loans and investments in the
being
about
2 per cent larger.
third week of April were about 4 per cent larger than
at this time last year when a sharp decline was under
Check collections through this ban~ and branches:
way.
AMOUNT
ITEMS
1939
1938
1939
1938
Adjusted demand deposits declined between the
(In thousands)
middle of March and the third week of April and there March........................ 6,435 6,344
$ 935,949 $ 919,052
768,740
753,695
was a decrease in reserve balances carried at this bank February.................. 5,132 5,030
2,637,066
2,575,722
and in correspondent balances carried at other banks. Three months........... 17,335 17,002
Deposits due to banks showed little change during the Bank Debits
period. Adjusted demand deposits are about 4 per
Debits to individual accounts by banks in reporting
cent larger than a year ago, balances due from banks centers of the District rose by about the usual seasonal
11, and deposits due to banks about 6 per cent larger.
amount from February to March but continue slightly
Principal items of condition of 51 member banks:
below the level of a year ago. For the whole country,
Change from
volume of payments by check is running about 5 per
Apr.19
Mar. 15 Apr. 20
cent above last year.
1939
1939
1938
(In thousands of dollars)
Payments by check in thirty District cities:
Loans and investments-total... ...... 654,367
Loans-total....................................... 256,355
Coml., indust., agric ...................... 152,749
Open market paper........................ 18,453
To security brokers and dealers..
4,229
Othertopurchase or carrysecur. 10,018
Real estate loans............................ 23,647
Loans to banks...............................
331
All other loans................................ 46,928
Investments-total... ........................ 398,012
U.S. Treasury bills.......................
5,524
U.S. Treasury notes..................... 84,148
U.S. Govt. bonds ............................ 116,279
Oblig. guar. by U.S. Govt............ 56,677
Other securities............................. 135,384
Reserve with F. R. Bank. ................ - 159,939
Balances with domestic banks......... 273,810
Demand deposits-adjusted ............ 492,186
Time deposits ..................................... 143,954
U.S. Govt. deposits........................... 23,483
Interbank deposits ............................. 360,779
*Comparable figures not available.
-190
-470
-1,122
-101
-489
+131
+610
-173
+674
+280
+421
-719
-927
+641
+864
-7,613
-2,759
-10,904
+338
+227
-50
+24,047
+10,335
+1,497
+328
+810
-2,384
+2,560
-163
+7,687
+13,712
*
*
*
+11,049
+23,861
+1,485
+26,174
+20,941
-405
+5,220
+20,184
Reserve Bank Operations
Note circulation of this bank has increased further,
averaging more than 169¼ million dollars in the first
half of April as compared with an average of about
1683/4 million in March and slightly above 168 million
in February. The circulation of about 168½ million
in the third week of April compares with 165½ million
at this time in 1938 and slightly less than 160 million
two years ago.
Albuquerque, N. Mex ........
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, Okla ................ ..
Oklahoma City, Okla ........ .
Okmulgee, Okla .................
Omaha, Nebr ..................... .
Pittsburg, Kans ................ .
Pueblo, Colo ....................... .
Salina, Kans ...................... .
St. Joseph, Mo ................... .
Topeka, Kans .....................
Tulsa, Okla ........................ .
Wichita, Kans ................... .
Change from
Mar.1939
Feb.1939 Mar.1938
(In thousands of dollars)
15,421
+2,711
+2,140
2,759
+295
-144
26,425
+2,924
-681
5,334
+ 384
+ 160
8,332
+1,834
+342
13,556
+2,814
+374
152,028
+17,143
+6,578
2,898
+420
-104
9,719
+2,132
-816
2,784
+648
+337
3,601
+729
+82
1,486
+60
-314
10,135
+545
-1,415
2,791
+282
+117
9,499
+1,263
+126
14,918
+973
+1,399
286,231
+52,344
-3,642
3,667
+568
+155
27,608
+3,674
+2,538
7,951
+1,133
-112
99,759
+10,603
-5,605
2,557
+475
-345
142,546
+21,627
+5,477
3,644
+406
+4
11,959
-316
-1,052
7,533
+1,008
-710
25,451
+3,344
+1,559
16,853
-688
-1,001
124,594
+12,991
-14,070
41,565
+2,952
-2,122
District, 30 cities .............. .
United States, 141 cities ...
1,083,604
+145,278
-10,745
34,437,717 +6,947,424 +2,317,832
FEDERAL RESERVE BANK OF KANSAS CITY
Wholesale sales and stocks reported by the Department of Commerce for this District:
Trade
RETAIL SALES
Following a contraseasonal decline in February,
dollar volume of sales at reporting department stores
in the District rose by about the usual seasonal
amount in March. Although Easter came a week earlier in April this year, March sales as well as those for
the first quarter of the year were little changed from
a year ago. However, sales for the four-week period
ending April 15, which would include Easter shopping
both this year and last, show an increase of 4 per cent
over last year.
Stocks of merchandise, which are 4 per cent smaller
than last year, increased seasonally during March.
Collections on open accounts averaged 46.5 per cent in
March as compared with 45.5 per cent a year ago,
while installment collections averaged 17.6 and 16.7
per cent, respectively.
Department store sales and stocks in leading cities:
SALES
STOCKS
, Mar.'39 3 Mos.'39
Mar. 31, '39
No. of comp.to comp. to
comp. to
Stores Mar.'38 3 Mos.'38 Feb. 28,'39 Mar. 31,'38
- - ~ e r cent increase or decrease)
Denver.............. ~ 4
+4.5
+0.1
+2.5
-8.7
Kansas City....... 4
-0.3
-1.9
+6.4
-9.9
Oklahoma City.. 3
-1.3
+3.2
+10.3
+13.9
Omaha............... , 3
-4.3
-1.0
+7.4
+3.3
Tulsa .................. 4
+2.8
-1.9
+3.2
+5.8
Wichita .............. 3
-0.3
-2.5
Other cities .......,17
-1.8
-2.1
+4.5
-7.9
District............. ~38
+o.3
-0.8
+5.1
-4.0
Total retail sales in March were 3 per cent larger
than a year ago and sales for the first quarter of the
year were about the same as in 1938.
Sales of independent retail stores reported by the
Department of Commerce:
Mar. 1939 per cent change from Mar. 1938
Colo. Kans.
Mo. Nebr.
Okla. Wyo.
Automobile ...... +12.8
+1.8 +23.6 +15.6
+4.5 +29.7
Country genl... +3.2
-4.3
+3.4
-0.5
+7.3
-4.0
Department....• +8.1
-1.3
+2.8
-5.6
-0.2
+1.6
Drug................. -2.6
-1.7
+6.1
+6.0
+4.4
-1.3
Furniture......... +3.6
-6.4
+4.9 -17.9 -15.3
-4.2
Grocery............
+o.5
-1.2
-1.7
-0.6
-2.8
Hardware ......... -6.8
-7.8
-3.8
+5.0
+2.0
Lbr. & mtls ...... -4.3
-1.2 +23.8
-6.4 +29.1 -15.5
Men's wear...... +2.5 -15.3 +31.4
+9.8
+0.4
+6.3
Women'swear. +7.6
-6.4
+2.8
+4.8
-2.6 +27.9
Total... .............. +3.7
-3.2
+5.7
3
+o.5
+1.7
+3.9
WHOLESALE SALES
The value of wholesale sales in the District in March
and in the first quarter of the year was slightly under
a year ago. Of the principal lines, only drugs, furniture, and hardware compare favorably with last
year. Total sales increased 18 per cent from February
to March. Dollar inventories showed little change
during March and continue al_>out 12 per cent lower
than a year ago. Collections averaged 68.0 per cent in
March against 70.4 per cent last year.
SALES
STOCKS
Mar.'39 3 Mos.'39
Mar. 31, '39
No. of comp.to comp. to
comp. to
Firms Mar.'38 3 Mos.'38 Feb. 28,'39 Mar. 31,'38
(Per cent increase or decrease)
Auto. supplies ... 11
+3.9
+1.3
+o.4
+2.3
Clothing............. 3
Zero
-6.2
-25.5
-20.5
Drugs ................. 8
+5.4
+3.5
-0.4
-5.6
Dry goods .......... 7
-4.7
-1.8
-1.5
-24.0
Electl. goods ..... 11
-7.7
+7.7
+10.2
-14.1
Farm products 9
-10.9
-2.2
+11.1
Furniture........... 4
+7.9
+6.2
Groceries ........... 41
-3.0
-3.2
-2.0
-13.0
Hdwre.-total.. ( 14)
·zero
+9.5
-1.9
+1.2
General.. .......... 5
-6.6
-0.9
-3.8
+1.2
Industrial......... 4
+13.2
+34.3
+o.9
+5.3
Plbg. & htg ...... 5
+2.9
+6.5
Jwlry. &opt.gds. 3
+3.1
-4.7
+2.2
Machinery......... 4
-21.9
Paper & prod..... 3
+14.1
Tobacco &prod.. 6
-3.0
-3.1
All other lines ... 14
-2.3
-5.5
+1.2
+3.5
Total... .............. 138
-2.7
-0.6
-0.7
-12.2
Crops
The first official estimates of winter wheat production, based on the April 1 condition of wheat, indicate
a crop for the District approximately 20 per cent
smaller than last year's large crop, chiefly the result
of the greatly reduced acreage this year. Because of
dry weather at and following seeding, prospects in the
late fall were generally poor even though subsoil moisture conditions were better than for some years previous. Since then, there has been a marked improvement and wheat that survived the dry weather shows
good color and is growing rapidly although growth is
not so far advanced as at this time last year. Some
damage to wheat has been caused by the green bug in
north-central Oklahoma and southern Kansas.
Department of Agriculture winter wheat estimates:
PRODUCTION
YIELD PER ACRE
Colo ..............
Kans .............
Mo ................
Nebr.............
N.Mex .........
Okla..............
Wyo ..............
Aver.
Indic.
Final
1939
1938 '28•'37
--( 000 Bushels)-14,360
14,587
9,034
118,022 152,114 137,853
21,132
31,512
24,265
43,976
52,824
44,023
2,088
2,380
2,538
46,924
58,322
47,054
2,404
2,353
1,259
Indic. Final Aver.
1939 1938 '28-'37
(Bushels_)_ _
10.0 10.6
6.2
9.0
8.5
10.0
12.0 12.2
12.7
11.5 11.2
12.2
6.0
5.8
6.2
10.5
9.9
9.8
9.5
9.8
7.2
7 States ........
U.S ..............
248,906
549,219
314,092
686,637
266,026
560,160
11.9
12.2
11.9
In general, the condition of winter wheat is good in
nearly all sections of the District except central and
northwestern Kansas, central Nebraska, and northeastern Oklahoma where abandonment has been fairly heavy. In the former drought area that centered in
southwestern Kansas and adjacent parts of other
states, prospects are favorable for the first time in
seven or eight years.
REVIEW OF AGRICULTURAL AND BUSINESS CONDITIONS
4
March rainfall was appreciably above normal in an
east-west belt including southern Nebraska, most of
Kansas, and parts of eastern Colorado, and widespread
moisture has been received in April. The present outlook for irrigation water is especially good.
Rainfall
COLORADO
Denver................................
Leadville............................
Pueblo................................
Latnar.................................
Garnett...............................
Steamboat Springs..........
Mar.1939
3 Mos.1939
Total Normal
Total Normal
(In inches)
3.03
1.97
1.01
1.04
4.30
2.77
1.66
5.15
3.19
1.37
.57
.59
.86
.80
3.19
1.66
.39
1.31
.71
.35
1.69
2.34
8.05
6.97
KANSAS
Topeka............................... 1.27
Iola..................................... 2.56
Concordia........................... 1.93
Salina................................. 1.42
Wichita .............................. 1.57
Hays ...................................
.98
Goodland............................ 2.20
Dodge City....................... 1.06
Elkhart............................... 1.07
MISSOURI
St. Joseph .......................... 4.69
Kansas City....................... 1.14
Joplin.................................. 1.52
2.10
2.59
1.23
1.39
1.75
.93
.90
.89
.85
3.49
5.34
3.50
3.75
4.59
2.51
4.90
2.70
2.83
4.55
5.39
2.72
3.09
3.78
2.08
1.68
2.07
1.69
2.48
2.53
3.20
6.88
3.40
6.82
5.43
5.47
7.04
.89
2.10
.65
.88
1.49
.88
.85
.47
1.37
1.26
1.20
1.32
.88
.82
.82
1.25
2.94
4.23
2.80
2.31
2.65
1.73
2.94
2.49
2.96
2.85
2.67
2.67
1.88
1.74
1.69
2.28
.46
.54
.99
.81
.80
.66
1.63
3.55
2.16
1.53
2.22
1.96
1.01
1.25
1.16
2.34
1.83
1.75
1.85
3.02
3.09
1.98
2.10
1.58
1.60
1.43
5.45
8.20
5.35
6.16
6.68
5.60
5.78
6.59
8.16
4.28
5.19
3.30
3.82
3.11
NEBRASKA
Omaha..............................
Lincoln..............................
Norfolk..............................
Grand Island .....................
McCook..............................
North Platte......................
Bridgeport.........................
Valentine ...........................
NEW MEXICO
Clayton...............................
Santa Fe.............................
Farmington.......................
OKLAHOMA
Tulsa.. ·-······························
McAlester..........................
Oklahoma City..................
Pauls Valley......................
Hobart................................
Enid ....................................
Woodward..........................
WYOMING
Cheyenne...........................
Casper................................
Lander................................
Sheridan._ ..........................
1.73
.38
.50
1.15
1.02
1.24
1.19
1.16
3.19
.96
1.98
2.23
2.08
2.75
2.38
2.71
Grain Marketin&
Wheat marketings increased sharply during March
and were 14 per cent larger than in the same month a
year ago and nearly 20 per cent above the March tenyear average. Corn marketings continued in about
half the volume of a year ago and were less than a
third of normal for the month. The large wheat receipts reflected principally the liquidation of part of
the heavy farm reserves of this grain as the outlook
for the new crop improved, while the extremely small
corn receipts are due .largely to local demand for feeding purposes and to the substantial volume of corn
stored under Government loans.
March grain receipts at five District markets:
Wheat
Hutchinson .......................
Kansas City......................
Omaha.............................. .
St. Joseph ........................ .
Wichita.............................
Corn
(In bushels)
Oats
1,053,000
3,917,000
1,056,000
595,000
1,013,000
522,000
445,000
190,000
3,000
228,000
388,000
316,000
Mar. 1939.......................... 7,634,000
Feb. 1939......................... - 5,560,000
Mar.1938.......................... 6,723,000
3 Mos. 1939....................... 19,643,000
3 Mos. 1938....................... 18,745,000
1,160,000
1,201,000
2,120,000
4,671,000
9,911,000
932,000
728,000
698,000
2,970,000
2,523,000
Cash wheat prices continue to show little change,
the disturbed foreign situation as a market factor
about offsetting improved domestic crop prospects.
Cash prices for both wheat and corn up to the middle
of March had tended to ease further but have since
strengthened somewhat.
The lower range of cash prices at Kansas City:
No. 1 hd., 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 ......... .
Apr.24 Mar.31 Feb. 28 Mar. 31
1939
1939
1939
1938
$ .68½ $ .68¾, $ .68½ $ .87¾
.48
.46
.45½
.55½
.31
.29¾
.29¼
.30¾
.44
.43 ½
.44 ½
.62½
.40½
.40
.40
.54
.87
.77
.76
.85
Livestock
MARKETINGS
Livestock marketings increased seasonally during
March but continued in rather small volume except for
calves, receipts of which were about normal for the
month. Marketings of cattle were 13, hogs 39, and
sheep 19 per cent under average. Cattle marketings
also were 10 per cent under March of last year while
calf receipts were 18 per cent less. Sheep marketings
were little changed from a year ago and hog receipts
were a third again larger than the record low in 1938.
March livestock receipts at six District markets:
Denver....................
Kansas City...........
Oklahoma City......
Omaha ....................
St. Joseph ...............
Wichita...................
Cattle
29,075
88,225
28,946
87,532
20,596
24,630
Calves
6,219
17,022
11,641
7,257
4,329
4,042
Hogs
23,011
116,955
48,654
101,683
52,135
34,507
Mar.1939 ...............
Feb. 1939................
Mar.1938 ...............
3 Mos.1939 ............
3 Mos.1938 ............
279,004
228,271
311,192
832,386
915,429
50,510
44,390
61,611
154,369
173,590
376,945
323,086
283,447
1,240,061
1,174,881
Sheep
169,864
123,724
13,501
150,585
102,803
21,262.
581,739
468,100
584,898
1,520,488
1,536,294
PRICES
The quality of cattle marketings improved considerably during March and, notwithstanding the
seasonal increase in receipts, cattle prices advanced,
stocker and feeder values rising to their highest level
since 1930. Hog prices, under the usual seasonal influences, declined sharply from above $8 a hundredweight at the end of February to below $7 early in
April. Hog prices are substantially lower than a year
FEDERAL RESERVE BANK OF KANSAS CITY
ago and are the lowest since late in 1934. Reflecting
in part the seasonal demand for dressed lamb, sheep
and lamb prices adanced sharply about the middle of
March, the price for slaughter animals reaching the
highest point in about two years. Cattle and lamb
prices weakened late in March. In the first three
weeks of April, sheep and lamb prices recovered but
cattle prices showed further weakness and hog prices
continued to decline.
Top livestock prices at the Kansas City market:
Beef steers ...............
Stocker cattle...........
Feeder cattle........... .
Calves........................
Hogs ..........................
Sheep ....................... .
Fed lambs ................ .
Spring lambs ........... .
Apr. 24 Mar. Feb. Mar. Mar. Mar.
1939 1939 1939 1938 1937 1936
- - (In dollars per hundredweight-)12.25 12.75 11.50
9.85 14.50 10.40
10.25 10.50
9.75
8.50 9.25 8.60
10.40 10.35 10.00
8.40 10.00 8.50
10.00 11.00 10.50 10.00 10.00 9.50
6.70
8.10
8.15
9.35 10.35 10.60
8.85
7.90
7.75
8.00 11.50 8.85
10.00
9.65
9.15
9.25 12.75 10.40
11.00 11.00
9.25 10.00 15.00 11.00
STOCKERS AND FEEDERS
March shipments of stocker and feeder livestock
continued in heavy volume except for hog shipments
which were only about half of normal. The countryward movement of cattle was 21 and sheep 6 per cent
above average and that of calves nearly twice the
average. Cattle shipments were little changed from
a year ago but those of calves and sheep were half
again as large as in March of last year and hog shipments were up 27 per cent.
March stocker-feeder shipments from 4 markets:
Cattle
8,083
39,703
19,202
3,666
Calves
3,895
7,932
2,566
491
Hogs
--TT
Sheep
20,610
11,733
13,400
7,635
5
RANGES AND PASTURES
Western ranges generally carry a good supply of
old feed and, with the greatly improved moisture situation, prospects are excellent for spring grass. Cattle
and sheep have come through the winter in unusually
good condition and calf and lamb crops are expected to
be average or better. Demand for breeding stock is
particularly strong and restocking continues although restricted somewhat by the high price of
cattle. While wool prices are only slightly higher than
a year ago, the wool situation at the beginning of the
new marketing season is more favorable: the carryover is smaller than last season, the Federal loan program has been extended to the 1939 clip now being
shorn, and mill consumption is expected to be much
larger in the first half of 1939 than in 1938.
Pasture leasing in the Osage section of Oklahoma
and the Blue Stem area of Kansas had been rather
slow up to April 1 but trade reports indicate a marked
increase in leasing activity since that time so that the
number of cattle to be shipped in this spring may be
larger than the very small number shipped in last
spring. Lease prices are generally lower than last
year and there has been a reduction in acreage guarantees in the Blue Stem area, reflecting further recovery of pastures from the damage of the 1934 and
1936 droughts. Spring grass has made a good start
under recent favorable moisture conditions.
Farm Income
Cash farm income in the District in February was 3
per cent larger than a year ago, a decrease of 15 per
cent in receipts from the sale of crops being more than
Mar. 1939.....................
70,654
14,884
4,448
53,378 offset by a small increase in receipts from livestock
Feb. 1939.....................
63,367
16,943
3,659
34,018 and livestock products and a substantial increase in
Mar.1938.....................
70,760
9,661
3,495
36,329
3 Mos. 1939.................. 213,959
45,480
12,341
143,241 Government payments. Cash income was larger than
3 Mos. 1938.................. 179,473
25,147
11,737
117,109 last year in all states of the District except Kansas
At the middle of April the Northern Colorado feed- and Oklahoma where returns from wheat and cotton
ing section had 180,000 lambs left in feed lots, the were much reduced. In addition to the larger GovArkansas Valley 40,000, and the Scottsbluff area ernment payments, proceeds from commodity credit
about 120,000 lambs. While the total number still loans on corn accounted for much of the increase in
on feed in these three areas was 15 per cent larger Nebraska. Farm income in the District for the first
than last year, shipments to market since January 1 two months of the year shows an increase of 7 per
cent over 1938.
have been 16 per cent smaller.
Department of Agriculture farm income estimates:
Nebraska and Kansas on April 1 had 15 and MisChange from
souri about 12 per cent more cattle on feed than a
Jan. 1939
Feb. 1938
Feb.1939
year ago. Notwithstanding these increases, cattle
<In thousands of dollars)
feeding operations in Nebraska are only about half, in Colorado ...........................
8,316
+683
+1,692
-4,563
-3,202
Kansas one-fifth, and in Missouri a third of what they Kansas ............................. . 14,800
14,753
-4,039
+280
Missouri ........................... .
were in 1929. The increased number on feed this year Nebraska ......................... . 17,576
-6,816
+3,499
1,909
- 581
+539
has not yet been reflected in marketings due to the New Mexico.................... .
7,004
-3,055
-1,563
Oklahoma........................ .
tendency to feed cattle for a longer period than usual. Wyoming......................... .
2,454
+547
+922
Cattle feeding in Colorado shows a decrease of 5 and
-17,824
+2,167
Seven states.....................
66,812
in the Scottsbluff section of Nebraska 10 per cent.
-141,000
-1,000
United States................... 486,000
Denver.........................
Kansas City................
Omaha.........................
St. Joseph ....................
2,505
665
1,207
6
REVIEW OF AGRICULTURAL AND BUSINESS CONDITIONS
Meat Packing
Livestock slaughter increased seasonally in March.
Market receipts of cattle and calves, however, were
much smaller than a year ago and country demand for
stockers and feeders continued heavy, with the result
that packers' purchases of cattle were 10 and calves
21 per cent smaller than in March of last year and
about 14 per cent under average. Hog slaughter was
33 and sheep slaughter 6 per cent larger than a year
ago although the slaughter of hogs was 28 and that
of sheep 10 per cent below normal.
March packers' purchases at District markets:
Denver........................ .
Kansas City ............... .
Oklahoma City...........
Omaha ........................ .
St.Joseph................... .
Wichita....................... .
Cattle
14,928
39,374
13,892
57,798
15,488
9,913
Mar 1939......................
Feb. 1939.....................
Mar. 1938.....................
3 Mos.1939..................
3 Mos. 1938..................
151,393
133,473
168,391
458,805
532,272
Calves
3,046
9,743
7,321
4,691
3,721
4,133
Hogs
20,508
113,422
35,227
89,670
46,515
31,274
Sheep
34,745
98,432
9,012
105,346
83,334
20,501
32,655
336,616
30,307
267,757
41,408
253,334
94,913 1,072,124
120,105 1,031,093
351,370
317,585
333,016
991,622
941,388
Cold Storage Holdings
United States cold storage stocks of meats generally
showed less than the usual decrease and stocks of
lard a less than seasonal increase during March. Holdings of eggs increased and holdings of poultry, butter,
and cheese declined contraseasonally during this
period. Stocks of meats and lard on April 1 were still
much below and stocks of poultry, butter, and cheese
considerably above normal. Total egg holdings approximated the average for the past five years.
United States cold storage holdings:
per cent above average. Flour prices have declined
further but millfeed prices were steady to higher in
Mar ch and advanced sharply early in April.
Flour output reported by the Northwestern Miller:
Mar.1939
Kansas City....................... .
Salina ................................. .
Wichita............................... .
Other cities ........................ .
622,000
233,000
165,000
1,075,000
Change from
Feb. 1939 Mar. 1938
( In barrels)
-22,000
+108,000
+41,000
+87,000
-13,000
+36,000
+6,000
+130,000
Southwest........................... 2,095,000
+315,000
+58,000
United States>!'................... 5,892,000
+752,000
+402,000
*Represents about 60 per cent of total output in United States.
Petroleum
Preliminary estimates indicate a small decrease in
daily average crude oil production in the District during March. Output in March, although very little below average, was 10 per cent lower than a year ago and
production for the first quarter of the year 12 per cent
smaller. Virtually all of this decrease has taken place
in Oklahoma and Kansas where March output was
about 16 and 9 per cent lower, respectively.
Oil production reported by the American Petroleum
Institute and the Bureau of Mines:
Colo...................
Kans..................
N . Mex..............
Okla...................
Wyo...................
Mar. 1939
Feb. 1939
Mar. 1938
Gross D. Av. Gross D. Av. Gross D. Av.
--(-In thousands of barrels) - 117
3.8
82
2.9
116
3.7
4,850 156.4
4,250 151.8
5,292 170.7
3,363 108.5
2,744
98.1
3,159 101.9
13,707 442.2 13,265 473.8 16,297 525.7
1,648
53.1
1,387
49.5
1,499
48.4
5 States............ 23,685 764.0
U.S ................... 104,246 3,362.7
21,728 776.1 26,363 850.4
93,475 3,338.4 106,524 3,436.3
Stocks of crude petroleum produced in this District,
which had declined almost steadily from the early
Apr. 1
Mar.1
Apr. 1 Apr.1 part of May last year to the latter part of February
1939
1939
1938 5-Yr.Av. this year, dropping more than 20 per cent, have since
--(In thousands of units)
tended to increase slightly. Indications of some firm40,913
46,404
50,501
85,420
522,330 542,138 543,947 606,889 ness in the general price situation in March have been
2,383
2,773
2,901
3,530 strengthened further by recent advances in the Mid90,965 116,229
78,819
85,310
62,275
67,760
69,884
77,500 Continent tank-car price of gasoline.
Beef, lbs .............................. .
Pork, lbs ............................. .
Lamb and mutton, lbs ...... .
Poultry, lbs ........................ .
Miscellaneous meats, lbs .. .
Lard, lbs ............................. . 129,047
Eggs, shell, cases ...............
1,094
Eggs, frozen (case equiv.)
1,729
Butter, creamery, lbs ......... 78,806
Cheese, all varieties, lbs ... . 81,644
125,281
165
1,271
92,780
91,485
121,316
1,303
2,756
14,947
77,042
138,813
1,248
1,563
9,537
72,243
Flour Milling
Operations at southwestern flour mills are holding
generally at an average rate or better, with a fairly
constant volume of hand-to-mouth orders, some improvement in export demand following an increase in
the Federal subsidy late in February, and with mills
pressing for shipping directions on old contracts in ·
order to take advantage of present relatively high
prices for by-product millfeeds. Flour output in
March and in the first three months of the year was
about 3 per cent larger than a year ago and nearly 5
Coal
Production of bituminous coal in the District declined seasonally during March. Output in March was
about 16 per cent larger than a year ago and that for
the first quarter of the year 8 per cent larger.
Coal output estimated from reports of the National
Bituminous Coal Commission:
Mar.1939
~~~!::~;:;d·iv.ff~;~~~i~
New Mexico ............... ~
Oklahoma................... .
Wyoming.................... .
496,000
525,000
105,000
85,000
429,000
Six states..................... 1,640,000
United States .............. 35,290,000
Change from
Feb.1939
Mar. 1938
(In tons)
-133,000
+67,000
-112,000
+78,000
-16,000
+9,000
-68,000
+33,000
-42,000
+33,000
-371,000
+1,380,000
+220,000
+8,545,000
FEDERAL RESERVE BANK OF KANSAS CITY
Zinc and Lead
Shipments of zinc from the Tri-State district declined moderately while shipments of lead dropped
sharply during March. The zinc shipment was 7 and
that of lead 43 per cent less than in March a year ago.
March ore shipments from the Tri-State district:
ZINC ORE
Tons
Value
Kansa s ............................. .
Missour i. ......................... .
Oklahoma ........................ .
10,824 $ 315,733
1,937
56,547
18,808
548,922
Mar.1939..........................
F eb. 1939..........................
Mar . 1938..........................
3 Mos. 1939.......................
3 Mos.1938.......................
31,569 $ 921,202
33,103
960,007
33,955
922,107
94,655 2,750,706
99,420 2,794,865
3,425$ 184,281
5,772
308,674
6,027
289,904
19,825 1,069,445
15,090
756,903
Reflecting the extremely low level of stocks of zinc, .
together with a declining rate of production, zinc
prices advanced late in March for the first time since
last November. Zinc output subsequently increased
but lead prices are weak and lead production has
dropped to the lowest rate this year.
Employment and Pay Rolls
Employment and pay rolls in the District were
little changed from mid-February to mid-March.
Employment is still slightly lower than a year ago
while pay rolls continue about 2 per cent higher.
Preliminary figures of the Department of Labor:
March 1939
per cent change from
Febr uary 1939
Employment Pay Rolls
Colorado......................................................
+ 0 .1
- 0 .9
Kansas.........................................................
+0.1
+ 2.0
Missouri......................................................
- 0.6
- 0.l
Nebraska.....................................................
+o.9
+1.2
New Mexico................................................
+1.4
- 4.0
Oklahoma....................................................
+0.3
+0.1
Wyoming....................................................
Zero
- 0.4
Seven states................................................
The value of March building permits in reporting
District cities was seasonally larger than that for the
preceding month and about 36 per cent greater than
a year ago. Value of permits for the first quarter of
1939 shows an increase of 28 per cent over 1938.
March building permits issued in District cities:
PERMITS
LEAD ORE
Tons
Value
1,081 $ 58,103
228
12,231
2,116
113,947
Zer o
1939
Value of construction contracts awarded in the
eastern half of this District, for which F. W. Dodge
figures are available, in March was 14 per cent under
a year ago, reflecting chiefly smaller awards for
public works construction. Residential building continues much above a year ago. Despite the March
decline, total awards for the first quarter were 31 per
cent larger in 1939 than in 1938 and in the first half
of April they were fully as large as a year ago.
Construction figures of F. W. Dodge Corporation:
STATES
Total
300,661
220,197
226,918
772,531
538,094
ESTIMATED COST
45
67
582
57
27
28
198
237
204
154
59
38
16
22
78
172
214
95
79
555
71
22
40
142
199
211
128
81
17
18
26
92
97
279
1939
$ 309,000
116,000
595,000
867,000
28,000
35,000
23,000
244,000
232,000
560,000
180,000
40,000
77,000
7,000
64,000
128,000
400,000
236,000
March ................................ 2,283
February.......................... 1,202
Three months ................... 4,851
2,226
1,132
4,472
$4,141,000
2,774,000
9,704,000
Albuquerque, N. Mex......
Cheyenne, W yo................
Color ado Spr ings, Colo...
Denver, Colo.....................
Hutchinson, Kans............
J oplin, Mo.........................
Kansa s City, Kans..........
Kansas City, Mo..............
Lincoln, N ebr...................
Oklahoma City, Okla......
Omaha, Nebr ....................
P ueblo, Colo.....................
Salina, Kans.....................
Shawnee, Okla.................
St. Joseph, Mo..................
Topeka, Kans...................
Tulsa, Okla.......................
Wichita, Kans..................
1938
85 -U
1938
$ 130,000
185,000
59,000
552,000
79,000
20,000
108,000
232,000
117,000
647,000
117,000
27,000
21,000
13,000
11,000
147,000
253,000
338,000
$3,056,000
2,685,000
7,559,000
Lumber
Boar d feet lumber sales at reporting retail yards
in the District increased seasonally during March
under the stimulus of expanding building operations.
Sales for March and for the first quarter of the year
were 11 per cent larger than in the same periods of
1938. A year ago, sales were running about 7 per
cent under 1937.
Collections on amounts outstanding averaged 31.1
per cent in March as compared with 27.4 per cent in
February and 33.6 per cent in March last year.
Lumber t rade at 151 retail yards in the District:
+0.2
Building
37 EASTERN
TENTH DISTRICT
Residential Total
Residential
(In thousands of dollars)
9,460
125,225
Mar.1939.................... 3,742
12,034
79,020
Feb. 1939..................... 3,134
Mar. 1938.................... 2,826
11,014
79,396
30,608
284,408
3 Mos. 1939 ................. 10,007
3 Mos. 1938................. 5,994
23,430
155,626
7
Sales of lumber, board feet ..................... .
Sales of all materials, dollars ...................
Stocks of lumber, board feet ................... .
Outstandings, dollars ............................... .
Mar.1939
per cent change from
Feb. 1939 Mar. 1938
+55.2
+10.7
+43.0
+2.3
- 0.2
-7.6
+ 5.2
+12.2
Life Insurance
Life insurance sales in the District in March were
slightly under a year ago but sales for the first quarter of the year were up 15 per cent.
The Life Insurance Sales Research Bureau report:
Change from
Mar.1939 Feb.1939 Mar.1938
( In thousands of dollars)
Colorado ......................................
5,471
+970
-180
Kansas ........................................ .
6,524
+28
- 613
Mi ssouri ..................................... .
18,322
+280
+129
N ebraska .....................................
6,024
+975
+355
New Mexico ................................
1,114
+18
-179
Oklahoma....................................
8,852
+449
-804
Wyoming .....................................
1,416
+296
+302
Seven states................................
U nited States.............................
47,723
576,040
+3,016
+ 44,008
-990
+ 7,567
8
REVIEW OF AGRICULTURAL AND BUSINESS CONDITIONS
NATIONAL SUMlv.lARY OF BUSINESS CONDITIONS
By the Board of Governors of the Federal Reserve System
MANUFACTU RING PRODUCTION
'<llllTS IN TOTAL INDEX
POINTS IN TOTAL INO£X
~
~
In April manufacturing production was maintained at about the same
rate as in March but mineral production declined, reflecting a sharp reduction in output of bituminous coal pending settlement of negotiations between
operators and miners. In the first quarter of this year industrial output,
after a rapid rise in the latter half of 1938, increased less than is usual at
this season.
PRODUCTION
o .___ _..___ _..___ __,__ _...__ _...__-----'o
1934
1935
1936
1937
1938
1939
Index of physical volume of production, adjusted for seasonal variation, 1923-1925 average
=100. Durabl e and nondurable series expressed
in terms of points in the total index. By months,
January, 1934, through March, 1939.
WHOLESALE PRICES
PERCENT
PERCENT
110
110
100
100
90
80
~
70
,,.
-
...
../
~
90
80
"""'-... ,_
70
'
60
60
50
50
1934
1935
1936
1937
1938
1939
Index compiled by the United States Bureau
of Labor Statistics, 1926=100. By w eek s, 1934
through week ending April 15, 1939.
DISTRIBUTION
MEMBER BANKS IN 101 LEADING CITIES
BI LLIONS Of" DOLLARS
BILLIONS OF DOLLARS
12
12
10
8
6
Volume of industrial production showed little change in March and the
Board's seasonally adjusted index remained at 98 per cent of the 1923-1925
average. The index for the first quarter averaged 99, compared with 101 in
the final quarter of last year. Activity at steel mills in March was at 54
per cent of capacity, a slightly higher level than in January and February.
Automobile production increased less than seasonally. Retail sales of cars
continued to fluctuate around a level considerably higher than last year but
lower than in 1936 and 1937. Dealers' stocks of new cars began to decline in
March, following an increase to a seasonally high level. Activity in the machiner y industries increased further in March, continuing the rise that began
last summer. Lumber production increased less than seasonally from the
relatively low level of other recent months. Production of nondurable goods
in March continued at about the level that has prevailed since last autumn.
In the woolen textile industry activity showed a decrease from the high level
of recent months, while at cotton mills and shoe factories output was maintained in large volume. At meat-packing establishments and sugar refineries increases in activity were reported, following earlier declines.
Value of construction contract awards increased in March, according to
F. W. Dodge Corporation figures, reflecting a seasonal rise in residential
and other private building. Awards for public projects showed little change.
In the first three weeks of April bituminous coal production declined to a
low level as most mines were closed, pending the settlement of biennial
contract negotiations between mine operators and workers. Steel ingot production was reduced somewhat, averaging about 52 per cent of capacity,
and automobile production showed little change from the rate reached in
the latter part of March.
6
4
Sales at department stores and mail-order houses increased somewhat
more than seasonally in March, while variety store sales showed about the
usual rise. For the first quarter as a whole retail sales were in about the
same volume as in the final quarter of 1938, after allowance for seasonal
changes.
Freight carloadings showed less than the customary advance from
February to March as loadings of coal declined and shipments of miscellaneous freight increased less than seasonally. In the first half of April there
was a marked decrease in freight traffic, reflecting in large part a sharp
decline in coal shipments.
COMMODITY PRICES
0
1936
1937
1938
1939
W edn~sday figures for reporting member
banks in 101 leading cities, S ptember 5, 1934,
through April 19, 1939. Commercial loan s, which
inclu de industria l a nd agricultural loans, represent prior to May 19, 1937, so-ca ll d " Other
loans" a s t h en reported.
EXCESS RESERVES OF MEMBER BANKS
BILLIONS OF OOLLARS
Prices of steel scrap, copper, hides, and some other industrial raw materials declined from the middle of March to the third week of April, and
there were decreases also in prices of livestock and dairy products. Silk
prices rose considerably. The general level of wholesale prices, as measured
by the index of the Bureau of Labor Statistics, declined to 76 per cent of
t he 1926 average as compared with 77 in the middle of March and at the
beginning of the year.
BANK CREDIT
5
4
3
3
2
Reflecting continued heavy gold imports and Treasury disbursements
from its balances at the Reserve banks, member bank reserves and deposits
increased sharply during the four weeks ending April 19. Excess reserves
rose to a record high level of $4,000,000,000. Total loans and investments at
banks in 101 leading cities, which had shown little change during March,
increased somewhat during the first three weeks of April, reflecting principally continued purchases of United States Government oblig ations by N ew
York City banks. Loans to brokers and dealers in securities declined.
MONEY RATES AND SECURITY PRICES
0
0
1934
1935
1936
1937
1938 ,
1939
Wednesday figu res of estimated excess reserves for all m ember banks and for selected
N ew York City banks, January 3, 1934, through
April 19, 1939.
Prices of Government bonds and of other bonds of highest grades continued firm at high levels during March and the first three weeks of April,
while prices of the lower-grade corporate bonds and of corporate stocks declined. The average discount rate on new issues of 91-day Treasury bills
continued at a low level and other open-market rates remained unchanged.
@FedFRASER