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TH E MONTHLY REVlEW OJ Agricultural, Industrial, Trade and Financial Conditions in the Tenth Federal Reserve District FE D ERAL RESERVE BANK OF KANSAS CI TY M. L. McCLURE, Chairman and Federal Reserve Agent A. M. McADAMS, Assistant Federal Reserve Agent and Secretary Vol. I1 KANSAS Crrv Mo., AuousT ID-YEAR reports reflected improvement in the outlook for this year's farm production in the states and parts of states embraced in the Tenth Federal Reserve District. D ue to the improvement between June 1 and J uly 1 the.._official forecast of winter wheat in this district was increased 11,514,000 bushels to an estimated t.>tal on the last mentioned date of 268,373,000 bushels, rr6,895,ooo bushels more than the harvested crop of 1925 and 47.2 per cent of the entire United States winter wheat production for the year. As th·e harvest advanced threshing returns showed larger per acre yields in most sections than had been previously reported, and it was evident late in July a revision at the end of the month would show several million bushels added to the July estimate. T he corn crop in the district was forecast on the condition of July 1 at 464,379,000 bushels, 24,924,000 bushels more corn than was produced last year. Heavy rains throughout the corn belt during July were beneficial to the crop and in most sections conditions were excellent. The J uly estimates indicated larger crops of rye, barley, grain sorghums, broom corn and _sugar beets than were harvested last year, a probable small decrease in cotton, and moderate decreasesl in oats, potatoes and hay. As a whole, the reports were favorable tfor ~a year of good farm crops, and with the improvement in growing conditions during July for all unharvested crops the prospects were very bright. M HE volume of business in the Tenth Federal Reserve District in'creased during June and entered July and the second half of the year at a level slightly above that reported at this time last year. This was indicated by the daily rate at which checks were drawn by customers: on their bank accounts in thirty cities. T Daily average debits, four weeks ending June 30, this year, $52,789,958, against $51,554,780 last year; increase 2.4 per cen t. Daily average debits, first six months this year, $51,276,422, against $50,, last year; increase 1, per cent. 99 275 792 Distribution of merchandise by wholesalers continued heavy · n June. W hile some lines reported a smaller volume of sales in 1, 1926 dollars, the combined total for all repQrting lines was a · gure somewhat above that for the preceding month and the corresponding month in 1925. June retail trade at department stores failed to come up to the volume reported for May, due to the unseasonally cool weather in the forepart of the month, but the total was larger by r.6 per cent than in June 1925, and sales in dollars from January 1 to June 30, inclusive, were larger than those reported for the like period last year. The grain trade, as reflected by the market reports, was unusually heavy for June. The movement of new wheat late in the month assumed enormous proportions, and . early in July was surpassing all previous high records for this time of the year. Market receipts of live stock were large for the month, cattle and sheep showing increases, and calves and hogs showing decreases, as compared with the receipts for the like month last year. Production of flour at southwestern mills was larger than June a year ago. Meat packing reports for June reflected increases in the slaughter of cattle and sheep and decreases in the slaughter of calves. Mineral production was heavy during June, though there was a slight decrease in the daily output of crude oil and a small decrease in daily runs of crude oil to refineries. Zinc ore shipments were larger and lead ore shipments smaller than a year ago, and the output of the metal mines in the Rocky Mountain regions was reported as exceeding that reported for the season last year. Coal mining activity held up during June and production for the month and first six months of this year exceeded that for June and the first six months of 1925. There was a further decline in building activity in eighteen reporting cities of the District during June, and the totals for the first half of the year showed decreases in the number of permits and in the estimated cost of construction as compared with the record for last_ye~r's first six month~. H.owever, building contracts awarded md1cated a substantial mcrease for the District as a whole. A very large volume of business was reported by retail lumber yards in cities and country towns. The demand for credit at banks in the Tenth District increased seasonally in June. At the close of the month the volume. of loans outstanding was slightly larger than at the corresponding f h date last year. As marketward movements o n~w w eat attained high record proportions during July! there _were further increases in the volume of loans and deposits. This Copy Released For Publication In Morning Newspapers July 29. THE MoNTBLY REVIEW STATISTICAL RECORD, TENTH FEDERAL.RESERVE DISTRICT First Half of 1926 and 1925 RESERVE BANK OPERATIONS: Weekly statements of the Federal Reserve Bank of Kansas City and branches, covering operations during June and the first three weeks of July, showed but slight change in the volume of credit outstandi.~g as compared with the weekly totals reported dutmg the earlier months of the year. However, the volume of credit outstanding during this period was at a higher level than in the like period in 1925. Changes durmg six months and one year in the volume of biJls discounted and purchased, and in other principal items, are indicated by a comparison of the totals for June 30, 1926, with those for December 30, 1925, and with those for July 1, 1925, as shown in"'the following: Six Months Change Six Months Peret. 1926 1925 Bank Debits, 30 cities .............................. $7,896,569,ooo $7,742,47 2,000 2.0 Clearings, F. R. Ban~------$5,512,424,000 $5,251,542,000 5.0 Items handled .............. _ _ _ _ _ 34,747,679 33,243,433 4.5 Business failures ..... ,.......... _ _ _ _ _ 638 1.4 647 Liabilities ............ _ _ _ _ _ _ _ $ 7,336,740 $ 8,949,9II -18.0 Building permits, 18 cities ......,____ 15,313 18,912 -19.0 Value......,_ _ _ _ _ _ _ _ _ _ J 47,981,830 $ 66,806,349 -28.2 Grain receipts, 5 markets: Wheat, bushel _ _ _ _ _ _ __ -1.8 38,490,200 37,809,150 Corn, bushels........._ _ _ _ _ __ 6.6 27,203,950 28,999,500 Oats, bushels.............. - - - - - 6,518,500 n,677,500 June 30, 1926 Dec. 30, 1925 July 1, 1925 Flour production, barrels...... _ _ __ 10,048,810 10,339,614 $ 94,341,503 Gold Reserves ...... -=- - - $ 85,741,440 $ 98,453,444 Crude oil production, barrels _ _ __ II9,041 ,ooo -1.2 120,549,000 Total Reserves .................. ,....... 90,984,574 98,619,466 102,912,945 Coal production, tons................................ 13,274,000 12,572,000 5.6 I 5,939,422 Bills Discounted........................ I 5,480,334 7,008,942 Ores shipped, 3 states: · Bills Purchased.......................... 11,360,730 16,816,081 12,943,081 430,269 6.6 Zinc, tons--········------4o4,435 32,648,300 U. S. Government Securities .. 36,517,900 37,447,200 Zinc, value..................·- - - - -21,207,736 $ 20,867,816 1.6 Total Bills and Securities ........ 63,573,464 70,626,703 53,020,323 Lead, ton..__ _ _ _ _ _ _ __ 63,619 -3.1 65,674 Total Resources ........................ 200,804,415 221,813,002 201,529,226 Lead, value.. $ 6,734,570 $ 7,554,841 -10.8 74,155,200 F. R. Notes in Circulation...... 61,384,500 62,842,840 Live Stock receipts, 6 centers: Total Deposits.......................... 90,088,871 94,639,044 90,513,614 Cattle................ _ _ _ _ _ _ __ 2,266,694 2,350,291 -3.6 67.1% Reserve Ratio-······ - -- 60.0% 58.4 % Calves.....· - · · - - - - - - - - 380,192 - 1 5.7 320,537 Hogs ............ - · · - - - - - - - 4,343,743 Savings in Banks 5,349,858 -18.8 Sheep.... _ _ _ _ _ _ _ _ __ 3,364,616 3,291,856 Reports from fifty-three banks in cities of the district showed Horses-mules.......................................... 55,659 56,5 1 3 savings deposits increased 1.6 per cent during June and on Meat Packing, 6 centers Cattle...................................................... 1,391,489 1,349,065 3.1 July I were 3 per cent larger than the amount reported on July 1, Calves .......... _ _ _ _ - - - 275,443 306,480 -10.1 1925. The number of savings depositors in 48 banks as 314,044 Hogs.......... ····························---3,234,748 4,020,017 -19.6 on July l, an increase of 489 over the total in June and an Sheep ...., _ _ _ _ - - - - - 2,124,610 1,959,576 8.4 increase of 7,783 or 2.5 per cent in one year. The deposits follow: NOTE: Bank debits are for twenty-six weeks ending June 30, 1926, and July 1, 1925. Zinc and lead ore shipments are for twenty-seven weeks ending Banks July 1, 1926 June 1, 1926 July 1, 1925 • July 3, 1926 and July 4, 1925. Denver, Colo........................... 6 t, 46,453,618 $ 46,550,582 $ 48,6o4,718 Kansas City, Kans................. 4 2,932,760 2,876,816 2,850,404 Kansas City, Mo....·-·············· 9 14,421,035 14,322,179 13,988,956 Lincoln, Nebr..... - - - - · 3 3,n7,974 3,040,729 2,937,387 Banking and Credit Oklahoma City, Okla .......'...... 7 8,697,154 8,453,301 10,210,185 Nebr........................... 4 6,582,144 6,499,590 6,048,729 CONDITION OF MEMBER BANKS: The combined state- Omaha, St. Joseph, Mo ......................... 5 7,808,396 7,745,465 9,405,93 1 ments of sixty-seven member banks in leading cities of this Tulsa, Okla.........· - - - -·· 6 13,962,658 13,054,330 7,854,645 4,900,451 4,585,634 3,789,617 district, reporting weekly to the Federal Reserve Board, showed Wichita, Kans... .. .................._ 6 1,044,6o3 999,722. 1,073,347 $438,459,000 of loa~s and discounts at the close of business Other Cities.............................. 3 on June 30. This total was $7,045,000 larger than four weeks earlier, $9,283,000 larger than at the close of last December, and $2,732,000 larger than on July 1, 1925. Investments of the reporting member banks, amounting to 1,193,219,000 on June 30, were $2,597,000 less than four weeks earlier, but were $23,767,000 or 14 per cent greater than on July 1, last year. Demand deposits, totaling $501,927 ,ooo on June 30, increased 1,u,728,000 in four ·weeks, $17,974,000 in six months, and were $9,937,000 larger than on July 1, 1925. Time deposits, $147,301,000 at the close of June, were $I ,255,000 larger than four weeks earlier, '$5,907,000 larrer than six months earlier and $8,961,000 or 6.5 per cent larger than at the corresponding reporting date last year. Principal resource and liability items shown in the condition statements of the reporting member banks, as of June 30, are here shown, with totals reported six months earlier and twelve months earlier for comparison: June 30, 1926 Loans and Discounts ................$438,459,000 Investments ................................ 193,219,000 Total Loans, Discounts and Investments ............................ 631,678,000 Demand Deposits ...................... 501,927,000 Time Deposits ............................ 147,301,000 Government Deposits.............. 5,563,000 Total Deposits ...... .................... 654,791,000 Dec. 30, 1925 $429,176,000 175,108,000 July 1, 1925 $435,7 27,ooo 169,452,000 604,284,000 483,953,ooo 141,394,000 2,098,000 627,445,000 605,179,000 49 1,990,000 138,340,000 1,431,000 631,761,000 Total... .......................................53 $109,920,793 $108,128,348 t,106,763,919 Business Failures Fewer business insolvencies and a smaller amount of liabilities were reported in the Tenth District for the month of June and the first half of 1926 than for June and the first half of 1925. The number of failures in June was the smallest for a month since September 1924, and June liabilities were the smallest since last February. The number of failures and amount of liabilities in June and the first six months of 1926 and 1925, compiled by R. G. Dun & Co., follows: LIABILITIES 1296 1925 $ 3,438,1 I I f, 3,343,294 6,260,119 4,560,093 2,373,659 2,303,980 ---3,078, 135 5,5 12,039 1,719,126 2,196,548 839,327 2,099,949 6,255,014 7,112,848 882,180 883,277 505,oo3 3,342,444 885,249 1,342,887 1,034,020 536,229 2,207,259 3,398,229 F. R. DISTRICT First, Boston ............................ Second, New York .................... Third, Philadelphia .................. Fourth, Cleveland .................... Fifth, Richmond .......... ........... . Sixth, Atlanta ............................ Seventh, Chicago ...................... Eighth, St. Louis ..................... . Ninth, Minneapolis .................. TENTH, KA SAS CITY...... Eleventh, Dallas ...................... Twelfth, San Francisco ............ U. S. Total, May ...................... 1,708 U.S. Total, 6 Months ... -......... n,476 TENTH DIST., 6 Months·-··· 638 1,745 11,420 647 t, 2 9,4°7,5 23 209,898,501 7,336,74o t THE MONTHLY REVIEW 3 VOLUME OF BUSINESS IN THIRTY CITIES INDICATED:BY DEBITS BY BANKS TO INDIVIDUAL ACCOUNTS. TwENTY-Six WEEKS ENDING FouR WEEKS ENDING June 30, July 1, Percent June 30, July 1, 19z6 19z5 Change l 19z6 19z5 i Albuquerque, N. M......... _ _ _ _ _ _ _ _ _ _ _ _J 9,87z,ooo $ 10,017,000 -1.4 J 6o,939,ooo '$ 57,z68,ooo Atchison, Kans............................. 6,169,000 5,770,000 6.9 38,736,000 38,915,000 Bartlesville, Okla. ..........••...•.......•...................................• 19,077,000 16,677,000 14.4 109,7zz,ooo 91,837,000 Casper, Wyo......... 10,561,000 13,384,000 --21.1 58,647,000 78,675,000 Cheyenne, Wyo................. 5,432,000 6,531,000 -16.7 36,zo3,ooo 39,566,000 Colorado Springs, Colo........... 14,518,000 16,064,000 7.6 82,935,000 88,469,000 -3.7 1,026,221,000 1,047,177,000 Denver, Colo. 159,686,000 165,83z,000 17,544,000 13,696,000 28.1 87,6o1,ooo 84,410,000 Enid, Okla.----··-·········· 3,509,000 6.4 22,749,000 21,930,000 Fremont, Nebr·······-··········· 3,733,000 Grand Junction, Colo............... 3,n1,ooo 2,773,000 12.2 19,405,000 18,086,000 10.8 21,288,000 19,073,000 Guthrie, Okla............. 3,164,000 2,856,000 Hutchinson, Kans.......................... 15,629,000 13,820,000 13.1 73,635,000 83,46o,ooo Independence, Kans................... n,255,000 10,388,000 8.3 63,283,000 61,545,000 Joplin, Mo..........·-························ 15,834,000 15,908,000 -0.5 n2,903,ooo 101,238,000 Kansas City, Kans..... 19,715,000 18,836,000 4.7 119,432,000 n7,166,ooo Kansas City, Mo•.·-········ 336,680,000 336,089,000 0.2 2,159,635,000 2,131,317,000 5,184~000 -2.6 30,885,000 31,511,000 Lawrence, Kans.............. 5,048,000 ::29,150,000 6.6 201,841,000 193,139,000 Lincoln, Nebr........... 31,068,000 4,099,000 3,667,000 11.8 26,263,000 25,457,000 McAlester, Okla...................... 9,994,000 10,617,000 -5.9 71,557,000 75,751,000 Muskogee, Okla...................... Oklahoma City, Okla................... 89,391,-:>00 77,611,000 15.2 559,290,000 511,6u,ooo 73,955,000 69,441,000 Okmulgee, Okla........................ 11,830,000 11,040,000 7.2 Omaha, Nebr•. ' ................................................................ 189,567,c:oo 191,9o6,ooo -1.2 1,192,717,000 1,216,385,000 Parsons, Kans..... 3,393,0-:>0 3,105,000 9.3 19,830,000 18,427,000 Pittsburg, Kans ......... -.... 6,302,0::x> 5,553,000 13.5 38,479,000 36,834,000 Pueblo, Colo....................... 18,109,0:>o 18,817,000' -3.8 105,687,000 119,86o,ooo St. Joseph, Mo................ 59,147,oco 58,391,000 1.3 371,004,000 374,804,000 Topeka, Kans....·-······· 16,734,ocx., 16,040,000 4.3 105,117,000 107,655,000 Tulsa, Okla.................... 119,163,000 107,670,000 10.7 731,499,oooJ 6o5,952,ooo Wichita, Kans................................ 51,134,000 46,413,000 10.2 275,111,000 275,513,000 '$1,237,314,000 '$7,742,472,000 Percent Change 6.4 -0.5 1 9•5 --25.5 -8.5 -6.2 --2,0 3.8 3.8 7.3 11.6 -u.8 2.8 11.5 1.9 I.J -2,0 4.5 3.2 -5.5 9.3 6.5 -1.9 7.6 4-5 -11.9 -1.0 --2.4 20.7 :--0.2 2.0 Payments by Check Trade Debits of checks drawn by customers against their bank accounts in thirty cities of the Tenth District amounted to $1,266,959,coo during the four weeks ending June 30. This total exceeded that for the preceding four weeks by $102,441,000 or 8.8 per cent, and it was larger than the amount reported for the corresponding four weeks last year by $29,645,000 or 2.4 per cent. Debits d~ring the first twenty-six weeks of 1926, as a measure of the dollar volume of business in the thirty cities, totaled $7,896,569,000, an increase of $154,097,000 or 2 per cent over the total for the like period in 1925. WHOLESALE: The volume of wholesale trade in June, in the dollar value of goods sold, was larger than in May for all reporting lines except furniture and millinery, while increases over June of last year were reported by dry goods, hardware and furhiture firms, and decreases by groceries, drugs and millinery firms. The reports of dry goods firms in this district indicated that the increases for the month over May were due largely to the fact that merchants who failed to place advance orders early on summer lines were buying during June for their immediate uses. There were no changes in market prices for staple cotton goods during recent weeks, though previous reductions in prices of leading brands of bleached and unbleached muslins put the market for those goods on a firm foundation. Stocks of dry goods were a little below usual for this season, but deliveries were prompt. The grocery trade throughout the district was in an increasingly heavy volume in recent weeks, and the increase over May was attributed to the heavy movement of supplies to the country for the harvest season. On the whole, however, the volume of the June trade, for all firms reporting, did not come up to that of June of last year. Trade conditions reported by wholesale.hardware firms improved very perceptibly in June, noteably in country communities where building activity this season is particularly heavy, the statistical table showing an increased volume of sales over the previous J?,lon th and a year ago. Although the wholesale furniture trade declined seasonally during J cine, the volume of sales exceeded that of the corresponding month last year. The wholesale drug trade during the month was slightly larger than in the preceding month but smaller than a year Federal Reserve Bank Clearings Clearings at d~e Federal Reserve Bank at Kansas City and branches at Omaha, Denver and Oklahoma City amounted to $971,115,000 for the month of June, an increase of $92,845,000 or 10.6 per cent over May, and an increase of $64,221,000 or 7.1 per cent over June of last year. Clearings for the first six months of 1926 aggregated $5,512,424,000, 2n increase of J260,882,ooo or 5 per cent over the volume for the first six months of 1925. The number of items handled during June and 'the first six months of 1926 was larger than in the corresponding month and six months of 1925. The table which follows shows the number of items handled and the amount f~r -each month of 1926 and 1925: January.................. February................ March ...................... April........................ May........................ June ........................ ITEMS 19'26 1925 5,689,267 5,448,539 5,16o,840 5,308,z63 5,896,313 6,265,324 5,633,189 5,770,z68 5,647,z74 5,3 14,3 13 6,067,283 5,790,229 AMOUNT 1926 1925 '$ 910,543,000 f, 93z,787,ooo 791,058,000 809,969,000 1,019,no,ooo 962,476,000 873,512,000 901,173,000 807,059,000 878,270,000 906,894,000 971,115,000 4 THE MONTHLY REVIEW Dry Goods_ Groceries .... ____ Hardwar Furniture--··-·· Drugs_ .. Millinery··-·· WHOLESALE TRADE IN THE TENTH FEDERAL RESERVE DISTRICT Sales Outstandings (Mo. End.) Collections June, 1926 June, 1926 June 30, 1926 Reporting compared with compared with compared with Stores May 1926 June 1925 May 31, 1926 June30,1925 May 1926 June 1925 12.1 --0.I 8.7 -1.4 -3.8 5.8 5 2.8 --o.6 -8.9 7.6 -7.4 5.3 7 8 21. 4.0 4.I -2.5 7.8 4.5 -,.2 6.o -5.8 0.4 --0.4 3.0 5 -1.2 8 2.2 0.9 1.9 3.9 5.3 -II.8 -15.0 -4.0 -3.4 -23.3 -25.7 ~g?· Dealers. reported that ~e policy of close buying by ret a1lers was still pursued, pract1call y no future orders being placed. There was little change in prices during the last month. June reports showed a very large volume of sales of automobile tires and accessories. The volume for the month increased about 30 per cent over May and about 20 per cent over June a year ago. Reports on the wholesale stationery trade-showed an increase for the month of 5 per cent over the preceeding month and about 18 per cent over a year ago. Distribution of implements and farm machinery was exceptionally large. Some of the old established firms reported their sales for .the month were larger than for any June since they had been in business. Distributors of threshers and harvesting machinery reported a splendid business throughout the district except in some sections where wheat and oats made poor showing. RETAIL TRADE: Total sales in June of thirty-seven department stores in this district, reported in dollar amounts, were 3.2 per cent smaller than the total reported for May but 1.6 per cent larger than in June 1925. Increases were reported by twenty-three stores and decreases by fourteen stores. The reports of these department stores showed the volume of sales in dollars from January I to June 30, inclusive, was larger by 1.4 per cent than for the corresponding period in 1925. Other retail stores, particularly those handling men's and women's apparel, reported smaller sales in June than in May. COLLECTIONS: The wholesale reports for June showed collections were somewhat improved during the month, due to the brighter crop prospects, and were about the same as a year ago. In automobile tires and accessories, collections continued good, with the trade in June pursuing a firm credit policy. Collections were exceptionally good in the implement line and in the lumber trade. At department stores the percentage of collections during June on amounts outstanding was 43.6 per cent as compared with 42.7 per cent for the corresponding month last year. Stocks (Mo. End.) June 30, 1926 compared with May 31,1926 June 30, 1925 --0.1 -4.4 -1.8 9.5 -3.0 -3.0 -1.3 -3.5 Lumber and Materials Sales of softwoods during the past 30 days have been fairly large _for this season of the year, at which time buying is generally~curtailed r because of inventory taking by retail yards. Sales in)arge: cities have shown no material change since May and trade has been good in the wheat belt and especially active in:the oil fields. Prices of softwoods have remained fairly steady. Mills and yards report no accumulations of stocks. Demand for hardwoods has increased during the past thirty days at slightly higher prices. Due to increased buying and curtailed production, stocks at the mills are much lower than a few months ago. The lumber trade in the Tenth District during June, as reported by retail yards, was 2.4 per cent smaller in board feet than in May and 12.5 per cent larger than June of last year. Sales of all materials at these yards in dollars was 10 per cent less than in May and 9.2 per cent larger than in June 1925. The summary of reports of 200 yards follows: June 1926 Compared to May 1926 June 1925 12.5 Sales of lumber, board feet .......·-······································ --2.4 Sales all materials, dollars........ _ _ _ _ _ _ _ -10.0 9.2 -I.I Stocks of lumber end of month.. _ _ _ _ 0.2 Outst~ndings end of month................................................ 2.6 7.7 12.2 Collections during month ...................... - - - - - -2.1 The lumber cut (softwoods) during the twen-ty-six weeks of the year ending July 3 was reported by nine associations to the National Lumber Manufacturers Association as 7,011,652,536 feet. Shipments during this period was 7,176,198,799 feet, and orders were 7,125,526,651 feet. Shipments exceeded the lumber cut by 164,546,263 feet or 2.3 per cent, while orders were 50,672,148 feet or 0.7 per cent below shipments. Unfilled orders at 269 mills on July 3 were 772,593,000 feet as compared with 741,527,000 fe:et at 273 mills on January 2 and 715,532,000 feet at 283 mills on July 4, 1925. Production of face brick at 66 plants in 17 states during June increased 7.17 per cent over May and was 2.32 per cent larger than in June last year. Shipments during the month were the same as in the preceding month and 2.4 per cent under those of June 1925. RETAIL TRADE AT 37 DEPARTMENT STORES IN THE TENTH FEDERAL RESERVE DISTRICT Collections Sales Stocks (Retail) Outstanding Orders Accounts Receivable June 1926 June 1926 June 30, 1926 June 30, 1926 June 30, 1926 compared to compared to compared to compared to compared to St~res June, 1925 Reporting June 1925 May 31, 1926 June30,1925 May 31, 1926 June 30, 1925 May 31, 1926 June 30, 1925 May 1926 II.3 3.7 -8.o -11.6 3.2 26.6 -7.1 -6.o 3.2 Kansas City................ 3 4.3 4.3 Denver______ 5 3.0 -5.7 2.7 38.8 -1.9 4•4 I.I 9.8 18.4 12.3 -17.7 -3.3 --20.0 -49.0 3.8 I0.9 Wichita----- 4 -12.4 Omaha........................ 2 21.1 22.I 1.6 13.4 13.2 Kansas City................ 3 II.8 2.5 -6.7 --0.5 Lincoln---·····---···-·- 3 2 3•5 9.1 -8.7 Tuts..___ _ _ _ _ 3 8.3 18.3 II.I 7.3 0.5 --0.1 4.2 Other Cities.·--··-··--14 -,.o °- 2 Total....----37 1.6 -7.3 2.2 39.5 -3.5 5·5 4•4 NOTE: Percentage of collections in June on outstanding accounts May 31, all stores reporting, 43.6%. Collections same month last year 42.7%. 8.i 4 t =================T=H=E=M=o=N=T=H=LY=R=EVI=E=w====================5 ESTIMATED PRODUCTION OF LEADING FARM CROPS IN SEVEN STATES AND THE:TENTH FEDERAL RESERVE DISTRICT (In thousands of units-ooo omitted.) Winter Wheat Corn Oats Tame Hay . Barley Potatoes July 1 Final [July 1 Final July l Final Final July I Fmal July Jtily l Final 1926 1926 1925 1926 1925 1926 1926 1926 1925 1925 1925 1925 6,210 8,610 11,484 14,190 2,597 9,602 2,676 24,613 22,410 6,348 Colorado.........·-------·················· 17,200 10,752) 2,962 3,618 2,669 Kansas................ .. 140,515 74,750 105,658 104,643 34,937 3,466 2,538 39,376 4, 294 Missouri........ ................................ 16,705 21,965 192,738 201,338 45,133 49,166 5,160 6,348 3,265 3,735 Nebraska............ 33,719 31,661 236,343 236,600 49,513 6,300 3,888 6,250 300 3,03 2 73,953 51 4 100 New Mexico**.... 4,240 156 4,475 3,150 2,400 720 170 150 85 387 437 26,220 2,808 Oklahoma.................... .. 69,531 25,354 42,495 19,185 28,973 4,428 623 1,764 2,637 776 1,122 1,680 1,288 4,690 1,177 Wyoming.......... 594 464 4,098 4,393 4,301 1,478 1,195 - - - - - - - - - - - - - - - - - - ---- - - - - - - --- --- Seven States ...................................................... 282,504 165,102 610,420 591,719 171,605 200,335 18,359 16,1 75 31,329 33,906 Tenth District*.................................................. 268,373 151,478 464,379 439,455 136,795 163,265 18,319 16,141 26,433 29,876 United States- - - - - · · · · · · ····················· 567,762 398,486 2,660,780 2,905,053 1,334,260 1,501,909 r9o,959 21 8,002 334,044 323, 243 *Includes 19 counties of Missouri, 13 counties of New Mexico and 69 counties of Oklahoma. **New Mexico figures for July 1926 estimated. 13,97 1 II,240 77,818 16,063 13,107 86,474 Building Farm Crops Official reports from cities of the Tenth District showed declines in building operations during June and the first six months of the current year from those recorded for the corresponding month and first six months of the preceding year. The value of permits granted by the building departments in these reporting cities during the month of June was smaller than that for May by 3.5 per cent and smaller than that for June of last year .by 42.1 per cent. The value of permits gran ted Juring the first half of the year was 28.2 per cent smaller than the value recordedi for the like period in 192 5. The number of buildings authorized by permit in these cities during June was 14.2 per cent less than in May and 15.5 per cent less than in June a year ago, while for the six-month period of this year the number of permits was 19 per . cent -less than that for the first six months of last year. While the reports reflected a steady decrease in con's truction in these reporting cities since the post-war peak was reached in 1925, the number of new projects started this year and the total investments indicated a very large volume of building between J anuar'y 1 and June 30, inclusive, even though falling short of the totals recorded for the first half-year period in 1924 and 1925. The reports in detail showed the amount of the building investments was larger· in nine cities and smaller in nine cities than in the like period in 1925. The number and value of building permits issued during June and the first half of the current year is shown in the appended table with percentages of increase or decrease over the like m~nth and six months of the preceding year. The composite condition on July 1 of all crops in the seven states whose areas or parts form the Tenth Federal Reserve District was 95.4 per cent of the ten-year average condition on that date. This figure was r.8 per cent higher than the composite condition figure for the entire United States. The composite figures for the seven states, with percentages of increase or decrease petween June 1 and July 1, are shown in the following table, the basis (100 per cent) being the ten-year average condition: First Six Months Month of June Change Value Change Permits Value Permits -8.2 II2 $ 166,II4 28,800 Casper ...................... 20 $ 3 2-4 26.0 165 Cheyenne ................ 26 41,025 -28.4 33 2, 195 467,49o - 24.9 40,090 -53.8 Colorado Springs .... 79 47 1 8,159,800 -44.5 3,408 1,037,600 -68.2 Denver ...................... 540 17•7 414,418 227 28,630 -39.7 Hutchinson .............. 29 821,306 29.1 291 105,864 Joplin ........................ 55 53-9 24°,795 -20.9 1,097 1,491,943 -27.6 Kansas City, Kans. 237 12,913,285 -42.7 2,715 Kansas City, Mo.._. 463 2,259,510 -59.I 1 3·5 669 2,953,898 Lincoln .................... 96 347,538 -43.l 68.l 130 275,025 -49.5 Muskogee ................ 16 II9,380 282.5 988 37.6 4,759,63° Oklahoma City........ 144 1,486,595 277.1 8 473,43 1 Okmulgee................ 53 333, 200 1006.1 880,871 -53.7 5,7o8,753 -31.2 Omaha .... 95 1 134 106,336 -62.6 Pueblo...................... 109 7°9,4 23 -39.8 553 l.8 -2.3 402 102,785 St. Joseph ................ 92 531,397 29•5 12.l 2,194,720 716 Topeka.................... 129 328,855 1,231 3,406,031 -33.6 Tulsa ........................ 206 633,510 -38.4 o.8 2,202,971 1,134 Wichita .................... 195 333,634 -31.9 Total this year.... --2,578 f, 8,455,018 Total last year .. ___ 3,051 I4,6o7,979 -42.1 I 5,3 13 f,47,981,830 66,806,349 18,912 -28.2 Condition July 1 Colorado........................·----··········103.3 % Kansas ............- - - - - - - - - · · · · · · · 91.8 Missouri ...................................................... 93.8 Nebraska...................................................... 86.1 New Mexico .....................:.......................... 111.o Oklahoma .................................................... 107.6 Wyoming ............ ........................................ 97.2 Average Seven States ................................ 95.4% Average United States .............................. 93.6 Condition June I 103.4% 92.9 80.6 82.2 120.5 103.3 99.4 91.3 % 92.0 Change month -0.1% -1.1 13.2 3.9 -9.5 4.3 -2.2 4.1 % 1.6% Production of six leading crops-winter wheat, corn, oats, barley, potatoes and hay-forecast as of the July 1 condition is shown in the accompanying table, with final yields for last year for comparison. Estimated yields of other important farm crops in Tenth Dist·r ict St ates, as of July 1, are compared with the final yields in 1925, in the following: Spring Wheat-Colorado, Wyoming, Nebraska and New Mexico, 9,918,000 bushels, against 9,029,000 bushels. Increase 889,000 bushels. Rye-Seven states, 5,245,000 bushels, against 5,031,000 bushels. Increase 214,000 bushels. Grain Sorghums-Kansas, Nebraska, New Mexico and Oklahoma, 44,935,000 bushels, against 34,906,000 bushels. Increase 10,029,000 bushels. Broom Corn- Five states, 39,772 tons against 19,630 tons. Increase 20,142 tons. Sugar Beets-Colorado and Nebraska · only, 3,169,090 tons, against 2,574,000 tons. Increase 595,000 tons. Sweet Potatoes-Oklahoma only, 2,100,000 bushels, against 1, 180,000 bushels. Increase 920,000 bushels. Flax-Kansas and Nebraska, 310,000 bushels, against 360,000 bushels. Decrease 50,000 bushels. Apples-Seven states, II,056,000 bushels, against 14,204,000 bushels. Decrease 3,148,000 bushels. Peaches-Six states, 2,9n,ooo bushels, against 2,830,000 bushels. Increase 8 1 ,ooo bushels. Pears-Six states, 1,282,000 bushels, against 1,237,000 · bushels. Increase 45,000 bushels. 6 THE MONTHLY REVIEW COTTON: Based on the condition of the growing crop and the number of acres in cultivation on July 16, indications pointed to another year of large cotton production in the United States, with the better prospects in the Southwest states whose combined acreages represent 63.4 per cent of the entire United States cotton area in cultivation on that date. Figures for each of the eight states lying west of the Mississippi river, and for the entire United States, compiled from the July report of the Crop Reporting Board of the United States Department of Agriculture, follow: Per cent of Normal Condition July 16 1926 1925 T e x a s - - - - - -··········••73 64 Oklahoma.... 78 88 Arkansas...... 72 87 Louisiana.·-··-71 81 Missouri __ .. _ 79 90 Arizona__ 89 92 California........ 99 95 'New Me~ico.. · .. · ........ 84 8,8 Eight S. W. States.........•............73.9 United States----···········70.7 Acres in Cultivation June 25 1926 1925 18,948,000 19,139,000 5,160,000 5,320,000 3,814,000 3,967,ooo 1,979,000 1,903,000 488,000 542,000 168,000 162,000 167,000 171,000 132,000 138,000 72.8 75.9 31,189,000 48,090,000 With a slight decrease in acreage and a lower ~ondition reported on June 25, there were indications that the cotton crop in Oklahoma would fall slightly below the production of 1,690,948 bales in 1925. A considerable improvement in the condition of the crop since June 25 has been shown in weekly reports from the cotton growing sections of the district. Conditions for cotton in New Mexico improved slightly and there was also some improvement in the Missouri crop during June. GRAIN MOVEMENTS: The movement of new wheat into market channels had an earlier start this season than usual. The movement from southern parts of the district, where per acre yields were much larger than expected, was well under way late in June and the month's receipts at primary markets ill this district showed a very large increase over receipts for June 1925. By the middle of July, however, with the harvest about complete in southern parts of the wheat belt, and under full headway in the northern parts, receipts of new wheat at these markets assumed enormous proportions, surpassing previous high records, and ' the railroads were taxed to their utmost to supply cars for the movement of the crop. The following table shows receipts of six classes of grain at the five leading grain centers iri the Tenth District for June and six months, both 1926 and 192 5: Corn Wheat 147,500 Hutchinson._....... 2,830,950 Kansas City........ 4,625,100 1,847,500 .Omaha...·-·········· 623,000 1,580,600 St. Joseph............ 714,000 975,000 162,000 Wichita.............._ 5,013,050 June, 1926 ...•...... 13,806,100 May, 1926.......... 4,085,450 June, 1925 .......... 9,832,500 Six mos. 1926 .. 37,809,150 Six mos. 1925 .. 38,490,200 4,712,600 4,II3,900 3,776,000 28,999,500 27,203,950 Oats 4,500 282,200 840,000 144,000 3,000 Rye 12,100 60,200 Barley 1,250 3,000 Kafir 157,300 468,600 1,600 2,400 - - --- 144,000 1,273,700 72,300 8,250 769,goo 650,000 78,500 46,500 385,700 1 644,100 2,036,400 4 ,900 54,55° 501,000 6,518,500 252,650 2,76o,300 u,677,500 309,400 39 1,500 4,234,000 Flour Production Southwestern mills, reporting weekly to the Northwestern Miller, were operated during June at 61.3 per cent of full-time capacity as compared with 55 per cent in May and 57.8 per cent in June, 1925. Production of flour in June exceeded that for May by 184,170 barrels or 11.3 per cent, and was larger than in June of the preceding year by 61,856 barrels, or 3.5 per cent. During the first six months of 1926 thel Southwestern reporting mills were operated at an average of 56.5 per cent of full-time capacity with a total output of 10,048,810 barrels, comparing with 56.9 per cent of full-time capacity with 10,339,614 barrels produced during the first six months of 1925. Flour production at milling centers in this district in J U'1e and the first half of this year, with comparisons, is shown in the following: June 1926 May 1926 June 1925 6 Mos.'26 6 Mos. '25 Bbls. 108,529 371,578 83,39 1 108,913 160,896 149,97 1 834,5 23 Bbls. 88,095 375,025 94,096 u5,054 158,693 133,475 669,193 Bbls. Bbls. Bbls. 101,013 591,939 604,8 23 505,242 2,477,355 2,675,797 71,349 427,769 481,749 102,21 8 627,299 661,861 149,035 834,129 . 849,043 143,962 775,339' 827,028 683,126 4,314,980 4,239,313 TotaL. .....- - - - · ·1,817,801 1,633,631 1,755,945 10,048,810 10,339,614 Atchison ............................ Kansas City _ _ __ Omaha............ _ __ Salina...... _ _ __ _ St. Joseph.. _.................. .. Wichit...__ __ _ _ Outside.. _ _ _ __ Live Stock The condition of cattle on the ranges in Colorado 'on July 1 was 100 per cent of normal, a gain of 2 points during June and 9 points above the condition reported July 1, 1925. In Wy6ming the average condition on July I was 101 per cent, the same as a month earlier, and I point below a year ago. In Oklahoma the average condition on July I was 88 per cent of normal, a gain of I point during the month and 3 points better than a year earlier. The condition of cattle on · the ' long grass pastures in Kansas and Nebraska also rose during June and on July 1 was higher than a year ago. Although in some sections there was lack of moisture during June, frequent and heavy rains in the first half of July placed ranges and pastures in good condition in all parts of the District, and there was further improvement of cattle. The calf crop was very large in all the range country, the reports said, and losses small. Some reports said that not much better condition could prevail for sheep and lambs than those reported at this season. The lambing season was one of the best in history, many reports indicating that the lamb crop would average 100 per cent and better, with losses very light. Shearing was almost completed by July I and the wool clip was believed to be larger than that of last year. Sales of wool have been frequent recently, with some improvement in price. A good many of the earlier contracts were at from 32c to 34c per pound, but a' few later ones advanced to 35c to 36c, with the average ab'o ut 10c below that of 1925. The mid-year pig survey of the United States Department of Agriculture held out little hope for any large increase in the market supply of hogs during the coming fall and winter. There was a small increase in the number of sows farrowing in the spring over the spring of 1925, but the average number of pigs saved per litter was smaller this year, with a resulting decrease in pigs saved. However, there was reported a large increase in the number of sows bred for fall farrowing this year over the number of sows farrowing in the fall of 1925. MARKET MOVEMENTS: Receipts of all classes of liv;e stock at the six leading Tenth District markets increased during June. The totals for the month of cattle, calves, hogs, horses and mules and number of cars was the largest since ·March. Receipts of sheep, while they exceeded the total for May, were lighter than for any month since January. The June returns, when compared with those for the corresponding month last year, showed increases in receipts of cattle, sheep, 7 THE MONTHLY REVIEW ================================== horses and mules, and decreases in receipts of hogs and calves. The record of receipts at these six markets for the first half of 1926 was 10,351,249 head of live stock as compared with a combined total of 11,428,710 head of live stock received during the first six months of 1925, indicating a decrease for this · year's six-month period of 1,077,461 head or 9.4 per cent. An examination of the returns from past records shows that between J anuary I and July 1, 1926, receipts of cattle were , the smallest in number for any first half-year since 1921. ' Receipts of calves were the smallest since 1923 and of hogs the smallest of seven years record. Receipts of sheep showed a · slight change during the half-year period as compared with \ the like period in previous years. The r'eceipts in ~etail for the six market centers for June and the half-year period follow: Kansas City.............................. Omaha ..................................... . St. Joseph ................................ Denver;..................................... . Oklahoma City........................ Wichita .................................... Calves Cattle 145,73o 25,475 152,518 7,673 8,148 4 1 ,3 2 7 22,780 3,7 2 5 19,537 5, 2 39 2,081 8,143 Hogs 26o,8::-4 240,307 140,330 34,222 19,742 45,640 Sheep 152,196 175,259 85,033 78,928 1,n5 18,099 J une, 1926_······ ·· - - - - ·· 390,035 52,341 741,065 510,630 May, 1926................................ 388,421 52,088 693,n5 445,662 926,894 381,378 June, 1925 ................................ 381 ,207 71,122 Six Months 1926...................... 2,266,694 320,537 4,343,743 3,364,616 Six Months 1925 ...................... 2,350,291 380,192 5,349,858 3,291,856 Horses Mules 765 361 294 2,074 461 874 -4,829 3,827 4,3II 55,659 56,513 STOCKER AND FEEDER MOVEMENTS: Reports from the public stock yards at Kansas City, Omaha, St. Joseph and Denver showed small countryward movements of stock and feeding cattle and calves and large movements of sheep and hogs. Total shipments from the four markets for June and six months were: Cattle Kansas City............................................ 28,129 Omaha ...............................- - -····· 9,423 St. Joseph ...... =c.:~c..;__--················· 3,114 Denver .................................................... 12,103 - - - - 52,769 May, 1926..................· - - - - · · · · ·· 69,480 June, 1925...................... --'"'---- - 70,622 Six Months 1926.................................... 416,937 Six Months I 92 5....................................472,799 Calves 2,943 3,838 4,630 4,3 1 9 2 1 ,549 24,589 Hogs 14,933 1,631 4,oII 1,964 22 ,539 19,478 1 3,0 45 88,140 76,787 Sheep 24,747 29,216 15,407 22,963 92,333 4 1,6o3 48,827 365,556 325,167 Meat Packing Operations at the meat packing plants at the six leading centers, as measured by packers' purchases ,of livestock, were seasonally heavy. The month's slaughter of c_attle was the largest si nce last December and was larger than tn June of last year. The slaughter of sheep al so exceeded that for May of this year and June of last year. The number of hogs slaughtered was the largest since January, though falling below that of last year's June total. The records for the..first half of the year showed increases in the number of cattle and sheep and decreases in the number of hogs and calves purchased for slaughter? as compared with purchases in the first half of 1925. The receipt were: Cattle Kansas City.......................................... 89,265 Omaha .................................................. 104,'203 St. Joseph ............................................ 30,204 Denver...·-·················•·························· 10,746 Oklahoma City.................................... 16,040 Wichita .................................................. 6,236 Calves 23,168 6,482 7,531 3,166 4,686 1,493 Hogs 212,705 191,522 JI8,342 20,848 l 7,172 43,047 Sheep 100,154 136,615 68,6o5 6,978 809 5,420 318,581 6o3,636 46,526 45,382 537,669 31 5, 2 49 280,088 61,048 655,9 24 275,443 3, 234,748 2,124,610 3o6,480 -4,020,017 1,959,576 The Mineral Industries PETROLEUM: Production of crude oi] in five states of the Tenth District was at a rate of 657,685 barrels per day -during the first half of 1926, as compared with 666,016 barrels per day during the first six months of the preceding year. Gross production during six-month periods in the last three years was 119,041,000 barrbls this year, 120,549,000 barrels in 1925, and 115,122,000 bar'rels in 1924. During June the average was 652 200 barrels per day, 25,183 barrels less per day than in Ma~ and 36,263 barrels less per day than in June, 1925. Gross production of crude oil in t~e five producing states duri~g June and the first six months_of 1926 and 1925 arc shown in the: folJowing: •June, 1926 Barrels Oklahoma.................... 13,772,000 Kansas ........................ 3,236,000 Wyoming.......•............ 2,1 70,000 Colorado...................... 255,000 New Mexico._............. 133,000 June, 1925 6 Months 1926 6 Mos. 1925 Barrels Barrels Barrela 14,629,000 84,275,000 87,809,000 19,521,000 17,717,000 3,554,000 13,292,000 14,421,000 2,348,000 1,213,000 54,000 379,ooo 223,000 69,000 740,000 20,654,000 Tota...__ _ _ ········19,566,000 •Estimated, American Petroleum Institute. 120,549,000 The record of field operations showed more new wells were completed in June and the first six months of this year than in the month and six months last year, though the number of barrels daily new production was smaller for both periods than last year. There was a small increase during the month in new development work under way but the number of wells drilling on July I showed a slight decrease from the number reported on July 1, 1925. The record of field operations: BL:s. Daily Wells Completed New Prod'n Oklahoma•... - ... 490 67,845 Kansas .............. 1 95 16,129 Wyoming.......... 37 6,636 Colorado.... ·---· 13 690 195 New Mexico .... 12 June, 1926........ 747 May, 1926_...... 655 June, 1925........ 714 6 Mos. 1926... -.4,n9 6 Mos. 1925.._3,6o5 Dry Wells 142 51 91,495 83,772 101,578 552,751 596,303 Gas Wells 40 6 6 6 7 3 0 212 2II 211 1,275 1,059 50 43 40 334 293 Rigs-Wells Drilling 1 ,447 476 385 115 1 45 The reports for Oklahoma and Kansas show 66 ~efineries were in operation on July 1, the same as a month earlier and 7 less than a year ago. Runs of crude oil to stills was 267,070 barrels per day on July 1, which was 9,055 barrels less than on June I and 28,030 barrels less than on July 1, 1925. BITUMI OUS COAL: Recent weekly reports of the Department of Commerce reflected generally heavy production of soft coal for the summer season i'n the Tenth District and in the principal minin~ regions the_ U~ite~ States. The June total for the six producmg states m this district was 13,000 tons larger than that for May a~~ 15,~ tons larg~r th.a n that for June, 1925, while production durm~ the first s1x months of the year exceeded that for the like period last year by 702,000 tons or 5.6 per cent. Production figures follow: of •June, 1926 Tons Colorado .................................. 631,000 263,000 Kansas .......... - - - Missouri ................................... . 154,000 New Mexico ............................ 212,000 Oklahoma.............................'.... . 141,000 Wyoming.................................. 367,000 June, 1925 6 Mos. 1926 6 Mos. 1925 Tons Tons Tons 599,000 4,677,ooo -4,433,oco 245,000 1,961,000 1,837,000 183,000 1,178,000 1,142,000 178,000 1,366,000 1,187,000 165,000 1,042,000 1,047,000 383,000 3,050,000 2,926,000 Total...·-- - --··············1,768,000 1,753,000 •June estimated, United States Bureau of Mines. 13,27-4,000 12,572,000 8 THE MONTHLY REVIEW COLORADO METAL MINING: Activity at the mines in Colorado, which has increased steadily in recent months, resulted in the heaviest production of ores during June reported for any month in several years. Increased production and ac+-ivity was particularly noticeable at mines and mills in the Cripple Creek district during June. At the end of the month a report indicated an unusually large surplus of ore on track at the mills, with the result that a number of the larger companies were increasing development work and making little effort to push production. Final figures on production during the fiscal year ending June 30, by states, were not available for tris issue of the Monthly Review. Unofficial reports, however, indicated gold production during the year closely approximated that for the preceding fiscal year, while there would be moderate increases in production of the baser metals. ZINC AND LEAD: Production of zinc and lead ores at the mines in Missouri, Kansas and Oklahoma during the first half • d • h fi o f 192 6 very c1ose1y para11e]ed prod uct1on urmg t e rst half of 1925. The tonnage of zinc ore sold and shipped during the current yeai: to July 3 was larger by 6.6 per cent, and of lead ore shipped smaller by 3.1 per cent than the tonnage sold and shipped during the like period last year. An upward move- ment in prices at the close of June, following the lower prices prevailing during the spring months, brought prices at the first week in July to t he level of those prevailing at the corresponding date last year, stimulating activity in both production and shipments throughout the Tri-state field. Shipments of zinc and lead ores from the three producinp states are here shown for the 4 weeks and 27 weeks ending July 3, 1926, with compnsons: ZINC Tons Oklahoma ................................ 40,556 Kansas ...................................... I 5,902 Missouri .................................. 4,615 Value $ 1,919,362 74 1, 197 218,409 4 wks. ended July 3, 1926.... 61,073 4 wks. ended J une 5, 1926 .... 48,478 4 wks. ended July 4, 1925 .... 60,886 $ 2,878,968 27 wks. e nd ed July 3, i9 26....43o, 26 9 27 wks. ended July 4, 1925 ....404,435 $21,207,736 20,867,816 2,181,510 3,0 82 ,539 LEAD Tons 5,837 2,106 39 1 8,334 7,678 $ 805,940 10,558 1,140,257 700,056 $6,734,570 7,554,84I The average price of zinc ore during the first 26 weeks of 1926 was $48.55 per ton compared with $52.33 per ton for the corresponding period in 1925. The average price of lead ore was $104.15 against $113.35. Business Conditions in the United States Industrial activity was at the same level in June as in May and was slightly above the level of a year ago. The average of commodity prices advanced further between May and June. PRODUCTIO : The Federal Reserve Board index of production in basic industries remained unchanged in June. Production of iron and steel and activity of woolen machinery continued to decline, and there were also reductions in the output of copper, zinc and petroleum, while cotton consumption, the manufacture of food products, and the output of coal and cement increased. Production of automobiles was smaller in June than in May and for the first time this year was less than in the corresponding month of 1925. Declines took place in June in employment and pay rolls of all textile industries, except woolen and worsted goods and mens clothing, and some of these industries were less active than at any time since1924. Building contracts awarded during June were slightly less than in May, and for the first time .since early in 1925 were smaller than in the corresponding month of the preceding year. Crop reports issued by the department of agriculture indicated a slight improvement durin~ June. The composite condition of all crops on July 1 was reported at 6.4 per cent below the average · July condition during the last ten years. Production of winter wheat was estimated at 568,000,000 bushels or 172,000,000 more than in 1925, and that of spring wheat at 200,000,000 bushels or 71,000,000 less than last year. A production of 2,661,000,000 bushels of corn, or 8.3 per cent less than last year, is indicated in the same report. Cotton production, on the basis of July 16 condition was estimated at 15,368,000 bales, or 718,000 bales less than the production of last year. TRADE: Total volume of wholesale and retail trade in June was larger than for the same month in 1925. Department store sales declined seasonally in June and wholesale trade in all leading lines, except groceries, also decreased during the month. Sales of mail order houses increased more than usual in June and were 5 per cent larger than in June 1925. Stocks of merchandise carried by wholesale firms at the end of June were smaller than a year earlier. Department stores continued to reduce their stocks and their inventories, which had been con- siderably above last year's level earlier in the year, were at the end of June only about 1 per cent larger than a year ago. Freigh t car loadings showed seasonal increases during June and continued through the first half of July at higher levels than in previous years. Loadings of grains in the Southwestern states have been particularly large. PRICES: The general level of wholesale prices, according to the index of the Bureau of Labor Statistics, increased from May to June by less th~n half of one per cent. Prices of livestock and meats advanced, and $ere were small increases for silk, petroleum products, non-ferrous metals and chemicals and drugs. Price decreases occurred in grains, cotton, textiles, building materials and house furnishings. In the first two weeks of July prices of grains, flour, cotton, wool, and hides increased while those of cattle, hogs, silk, and rubber declined. 4I BA~TK CREDIT: Loans and investments of member banks in leading cities at the end of June were in larger volume than at any previous time, and after declining during the first half of July were still $900,000,000 above the level of a year ago. Of this increase about $385,000,000 was in loans on securities, $340,000,000 in commercial loans, and $175,000,000 in investments. Since the beginning of 1926 an increase in commercial loans, together with the growth of investments, has more than offset the reduction in loans on securities. The demand for credit at the end of the fiscal year and the increased currency requirements over the holiday were reflected in a growth of member banks borrowing at the reserve ba~~s, and on July 7 tota,I discounts were near the highest point of the year. With the return flow of currency from circulation after the holiday discounts declined and on July 21 were in about the same volume as in the last half of June. The reserve banks' holding of acceptances and of United States securities changed little during the period, and the total volume of reserve bank credit outstanding in the' third week of July was close to the June_level. Money marketf conditions were firmer in July as indicated chiefly by increases in rates on call and time security loans. Rates on acceptances and • on commercial paper were also slightly higher. • I
@FedFRASER