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THE MONTHLY REVIEW Of Agricultural, Industrial, Trade and Financial Conditions in the Tenth Federal Reserve District FEDERAL RESERVE BANK OF KA N SAS CITY M. L. McCLURE, Chairman and Federal Reserve Agent A. M. McADAMS, Assistant Federal Reserve Agent and Secretary P. W. MORGAN, Director of Research Vol. 14 K-4NSAS CITY, Mo., AuousT BUSINESS IN THE TENTH FEDERAL RESERVE DISTRICT T I, 1929 No. 8 HE flow of business in the Tenth District continued heavy and in sustained volume through June and the first six months of 1929, and on a higher level than in the corresponding month and six months of 1928. Bank credit outstanding in June was at the peak ofrecent years, but eased somewhat in the early part of July. Bank debits, reflecting payments by check in thirty cities, were 6.9 percent larger for four weeks in June and 10.6 percent larger for the first twenty-six weeks of the year than in the like periods of the preceding year. ~Hit Mid-year reports of the United States Department of Agriculture forecast this year's farm production at 94.9 percent of .the average for the previous ten-years. This was a higher composit figure than the farmers of this District had reason to expect, i'n view of the unfavorable weather conditions which seriously retarded plowing. and rlan ting in the Spring and the growth and maturing of crops during the season. As the harvesting of winter wheat advanced the returns showed smaller per acre yields in many sections than previously had been forecast, with a July promise of 258,903,000 bushels for the Tenth District, 61,337,000 bushels below the bumper yield of 1928. Marketings of the new crop to the middle of July exceeded all former records to that time, and prices paid producers were higher than last year. Due to reduced acreages this year's crops of corn, oats, and potatoes were estimated as smaller than those of last year, while crops of rye, barley, sugar beets, hay and fruits would be larger than those of last year. The cotton acreage in cultivation on July 1 was larger than that reported a year ago, but no report on condition and estimated production would be made public until early in August. Productive activity in leading industries of this District continued at a high rate during the month and recessions which usually occur in some lines at mid-summer were not so pronounced as at this season in former years. The output of flour was a new high record for June, while the number of barrels produced in the 1928-29 wheat year which ended June 30 was higher than in the 1927-28 wheat year. The slaughter of meat animals at packing establishments was at the low point of the year in June. For the half-year numbers of cattle, calves, and hogs killed and dressed were smaller and numbers of sheep larger th?n for the same period last year. The production of crude oil was larger in June and the six months period. Petroleum refinery operations slackened during the month but were at a higher rate than a year ago. The half-year output of zinc and lead ore and coal increased. Distribution of commodities, as reflected by carloadings of NOTE: Bank loans, investments and deposits are amounts reported July J, freight, was in record breaking volume for the month and six compared to those on June 5 and January 2 of this year and July J of last months. Movements of miscellaneous products, grain and grain year. Statistics for June 1929 compared to May 1929 and June 1928; and for the first six months of 1929 to the first six months of 1928. Month of June 1929 6 months 1929 compared to compared to General Business and Banking May 1929 June 1928 6 months 1928 Bank debits, 30 cities...................................... 1.4 6.9 10.6 Net demand deposits, 60 member banks.. 4.8 - 0.3 - 2.1 Time deposits, 60 member banks................ 0.3 2.0 1.9 Loans and discounts, 60 member ban ks.... 2.2 7.1 3.6 Investments, 60 member banks.................. - 1.6 - 4.3 - 3.0 Savings deposits, 52 banks.......................... - o.8 - 0.7 - 1.5 Savings accounts, 50 banks·--····················· 0.4 5.8 3.1 Life insurance written, 7 states.................. - 3.5 - 0.3 - 0.3 Business failures, districL ........................... - 9.4 30.7 10.9 Amount of liabilities, district...................... - 42.6 -1 7.0 -13.9 Trade 2.8 Retail sales, 35 departm ent stores............. . - 12.2 3.7 Wholesale sal es, 5 lines combined ............. . - 1.6 - o.8 O.l . _ 6.1 Drygoods ................................................... . 1.7 - 1.5 - 12.1 Groceries .... ............................................... . - 5.6 - 3.3 Hardware................................................... . I I.8 7.9 4·3 Furniture................................................... . -14.8 6.3 8.5 1.2 Drugs ......................................................... . -4.9 9.6 18.8 Lumber sales, 179 retai l yards................... . 0.3 4·3 Livestock Receipts, 6 markets 1.8 Cattle ............................................................. . -12.0 -10.0 Calves............................................................. . -12.8 1.2 Hogs ............................................................... . - 2.8 Sheep ............................................................. . -33.9 Horses and Mules ........................................ - 2.3 Grain Receipts, 5 markets 160.2 Wheat ........................................................... . 138.3 49•3 21.0 Corn ............................................................... . --'22.5 41.6 2 3-4 -12.3 Oats.·-···························································· -3.0 Rye................................................................. . - 37.8 - 48.0 -34. 2 157.2 79• 2 Barley·-··························································· - 4.7 Ka fir ............................................................... . 23.1 5o.9 55-5 Industrial Output -11.2 11.0 17.8 Flour·-····························································· Crude Oil. ...................................................... . - 2.1 6.3 3.1 10.2 Refinery operations...................................... - 4.3 5.8 Coal.. .... .. .......................... - -- - -- -11.9 9.1 4·3 - o.8 6.3 Cement·-························································· - 4.5 Zinc ore shipped............................................ 26.8 8.4 - 1.3 22.0 -41.2 Lead ore shipped.......................................... - 5.7 Meat Packing, 6 cities 1.8 Cattle.............................................................. - 3.1 -12.3 Calves·-··························································· - 9.3 0.1 Hogs................................................................ 0.9 Sheep...... ........................................................ -19.8 Construction Contracts awarded, district........................ -17.9 -30.0 - 9.2 Building permits, 6 cities............................ -11.3 -6.7 - 8.3 --'22.1 8.o Value of permits, 6 cities·--···.. ·················... -44.9 This Copy Released For Publication In Morning Newspapers July 29. 2 THE MONTHLY REVIEW products, automobiles, coal, and ore showed increaies, while movements of livestock showed decreases as compared with last year. The distribution of goods by wholesale firms located at leading trade centers of the District was maintained during June and the six months at approximately the same volume as in I 928. Measured by their dollar value, sales in June were oneten th of 1 percent below those for June a year ago, and sales in the first six months were eight-tenths of I percent below those for the like period last year. Retail trade at department stores in cities throughout the District, in June, although showing about the usual decline from May, was larger than in June of last year, and the halfyear sales were larger than for the like period last year. The value of building permits reported by nineteen cities for the first six months was the high half-year record aince 1925, while the value of construction contracts awarded during thia period was 9.2 percent below that for the like period in 1928. Payments By Check Debits by banks to individual accounts in thirty cities of the Tenth District rose to a new high level for the opening of the summer season. A total of $1,430,621,000 debited in four weeks ending June 26 indicated increases of $19,349,000 or 1.4 percent over the preceding four weeks and $92,675,000 or 6.9 percent over the corresponding four weeks of last year. The rise in the volume of debits during June carried the total for the first twen ty-six weeks of the current year to $9,426,044,000, the highest total recorded for the first twenty-six weeks of a year since debits have ·been compiled. In comparison with the aggregate of debits for the same period in 192~ there was an increase for this year of $902,926,000 or 10.6 percent. It is noted the tabulated summary shows that twenty-four cities reported higher debit totals for the first half year than for the like period in 1928, while only six cities reported this year's totals were smaller than last year. Banking and Credit • Borrowings of member banks at the Federal Reserve Ban of Kansas City, after reaching the high point of $56,573,441 on May 29, declined in subsequent weeks to $41,407,000 on July 3. This total, however, was $1,209,000 above tha.t of January 2, 1929, and $17,674,000 above that of July 3, 1928. Principal items contained in the statement of July 3 are shown in the follow1ng tabulation, with the figures reported four weeks earlier, twenty-six weeks earlier, and fifty-two weeks earlier for purposes of comparison: (Figures are in thousands of dollar1-ooo omitted) July 3, June 5, Jan. 2, 1929 1929 1929 Gold reserves·-·······'························· Jn6,081 $ 92,268 Jr t:2,580 Reserves other than gold................ 4,592 4,057 5,855 Total reserves.................................. 110,674 96,326 II8,436 Bills discounted................................ 41,407 55,u4 40,198 Bills purchased................................ 2,168 4,885 1,26-4 U. S. Securities................................ 10,513 Total bills and securities................ -45,076 61,499 53,476 Total resources................................ u5,882 zo3,075 225,274 F. R. Notes in circulation.............. 69,6n 67,419 70,690 Total deposits.................................. 93,454 87,846 98,678 July 3, 1928 $ 93,068 6,420 99,-488 2 3,733 II,485 18,521 53,740 197,427 55,543 95,39-4 The volume of loans, discounts, and investments of sixty reporting member banks in the Tenth District increased during June and on July 3 &tood at $691,500,000. This, with the exception of $692,274,000 on March 13 and $691,804,000 on December 26, last, was the highest amount recorded since the compilations of statistics of reporting member banks was instituted in January 1921. Loans and discounts of the 60 banks, amounting to $46o,603,ooo at the first report date in July, were $10,137,000 higher than four weeks earlier, $16,2'G5,ooo higher than at th beginning .of the present year, and $30,666,000 higher than on year ago. Security loans, save for a small increase in the fourweek period, were smaller than six months ago or a year ago. BANK DEBITS IN THRITY CITIES OF THE TENTH DISTRICT Lincoln, Nebr................................................................ Muskogee, Okla........................................................... . Oklahoma City............................................................. . Okmulgee, Okla........................................................... . Omaha, Nebr............................................................... . Parsons, Kans.-............................................................. Pittsburg, Kans ........................................................... . Pueblo, Colo.................................................................. Salina, Kans ................................................................. . St. Joseph, Mo .............................................................. Topeka, Kans............................................................... . Tulsa, Okla.............. ·.................................................... . Wichita, Kans ............................................................. . FouR WEEKS ENDINO June 26, 1929 June 27, 1928 1, 11,735,000 1, 11,677,000 6,556,000 5,798,000 20,005,000 16,945,000 7,451,000 8,074,000 6,317,000 6,462,000 I 5,605,000 16,322,000 178,u7,ooo 166,uz,ooo I 5,605,000 12,642,000 4,307,000 4,272,oo'o J,1 I 1,000 3,249,000 3,131,000 3,146,000 14,806,000 13,758,000 12,640,000 12,502,000 13,399,000 14,350,000 18,624,000 21,232,000 415,693,000 3,8,822,000 4,922,000 5,146,000 33,893,000 34,061,000 10,397,000 9,885,000 108,695,000 100,701,000 6,496,000 7,162,000 202,187,000 194,290,000 4,177,000 4,226,000 5,583,ooo 5,458,ooo 17,255,000 19,899,000 12,129,000 10,920,000 52,078,000 53,211,000 18,713,000 22,539,000 142,290,000 123,9u,ooo 64,704,000 61,174,000 Total 30 cities·--············· .. ··.......................................... $1,430,621,000 Albuquerque, N. M .................................... ·- ··············· Atchison, Kan_,___ _ _ ......................................... . Bartlesville, Okla ......................................................... . Casper, Wyo ....................................... ·-························ Cheyenne, Wyo .................................... - ..................... . Colorado Springs, Colo ............................................... . Denver, Colo·--····························································· Enid, Okla·-··································································· Fremont, Nebr............................................................. . Grand Junction ..................... :................·-··················· Guthrie, Okla ............................................................... . Hutchinson, Kans .... ................................................... . Independence, Kans .................................................... Joplin, Mo·-··································································· Kansas City, Kans·--··················································· Kansas City, Mo .......................................................... Lawrence, Kans ........................................................... . 1,I ,337 ,946,000 Change 0.5 ' 13.1 18.1 - 7.7 - 2.2 -4.4 7.2 23.4 o.8 -4.3 -0.5 7.6 I.I - 6.7 -12.3 12.7 - 4.4 - 0.5 5.2 7.9 - 9.3 3.1 - 1.6 2.3 - 13.3 II.I TWENTY-SIX WEEKS ENDIN'O June 26, 1929 June 27, 1928 1, 78,951,000 f, 73,098,000 37,4o4,ooo 39,364,ooo 113,925,000 105,929,000 45,601,000 46,504,000 40,702,000 38,315,000 100,349,000 97,213,000 z,061,925,000 1,203,794,000 91,183,000 79,874,ooo '17,710,000 27,356,000 20,251,000 20,968,000 21,282,000 10,433,000 88,364,000 105,676,000 73,786,000 79,59 2 , 000 96,849,000 85,759,000 123,6o8,ooo 122,445,000 2,661,608,000 2,37 2,459,000 31,508,000 3o,944,ooo 220,363,000 213,394,000 72,886,000 71,265,000 756,062,000 . 659,773,000 47,125,000 51,309,000 I ,263,366,000 I ,336, I 56,000 20,106,000 20,974,000 38,100,000 37,231,000 122,893,000 125,517,000 66,387,000 77,018,000 - 2.I -17.0 14.8 5.8 4o9,695,ooo 126,161,000 ·766,069,000 381,352,000 6.9 $9,426,04-4,000 $8,523,n8,ooo 350,050,000 I I 9,550,000 962,582,000 359,048,000 Percent Change 8.o 5.2 17.0 1.9 6.z - 3.1 IJ.4 14.2 1.3 J.5 4.2 19.6 7.9 12.9 -0.9 12/1 I.8 3.3 2.3 14.6 8.9 5.8 5.8 - 2.3 - 2.1 16.0 - 2.5 - 5.2 '-5•7 7.4 10.6 J THE MoNTH LY REVIEW alnvestments totaling $230,897,000 on July 3, reflected de!9:lines from the amounts held on each of the three former dates with which comparison is made. Net demand deposits of the reporting banks, after a downward tendency during May and June, turned upward in July, reflecting early returns from farm crops and livestock marketed at more favorable prices than were received at this time last year. The total of net demand deposits on July 3 stood at $500,734,000, which was $23,033,000 greater than on June 5, but $10,8 66,000 less than six months ago and $1,585,000 le!S than one year ago. Principal resource and liability items of the sixty reporting member banks are shown herewith for July 3, with the figures for the three former dates mentioned for comparison: (Figures arc in thousands of dollara-ooo omitted) July 3 June 5, Jan. t, Loans & lnvestmcnts-totaL _.... . Loans & Di1counts-total... ........... 1929 691,500 46o,6o3 122,380 338, 22 3 230,897 107,397 Secured by 1tocks and bonds..... . All other loans and discounts... . Investments- total.. ..................... . U.S. Government Securities ... .. Other bonds, stocks, ::.nd Securities .................................. 123,500 Reserve with F. R. Bank ............. . 56,i8'.l Net demand deposits ...................... 5oo,73,4 Time deposits.. ................................ 180,392 1929 685,182 -1,50,466 120,332 330, 134 234,716 107,698 1929 682,480 +44,338 123,629 3 20,709 July J, 1928 671,144 -1,29,937 t38,Lfl •136,639 *293,298 :1.p,:207 u5,481 109,423 127,018 12:1,661 54,286 -477,701 179,908 60,717 511,600 131,784 6o,107 502,319 176,900 176,955 was smaller by 13.9 percent than in the like period last year. The six months insolvency record for the Tenth District and the United States follows: Six Months 1929 Six Months 1928 Number Liabilities Number Liabilitic11 Tenth District.................................. 754 $ 8,169,495 680 $ 9,482,334 United States .................................. 12,172 232,128,936 12,828 251,448,406 The number of business failures and the amount of liabilities reported by R. G. Dun & Company for the month of June is shown in the following table for each of the twelve Federal Reserve Districts, with comparisons: June 1928 June 1929 Number Liabilities Number L1abiltie1 First, Boston .......... _. 184 1,887,796 278 3,242,-468 Second, New York ...... - ................. 372 7,469,126 364 6,475,521 Third, Philadelphia ........................ 62 1,248,063 79 1,806,561 Fourth, Cleveland .. ........................ 136 2,8-1,7,201 159 :u80,435 Fifth, Richmond.............................. 138 2,534,991 98 1,397,501 Sixth, Atlanta .................................. 100 1,328,602 108 I ,98-1,,306 Seventh, Chicago........................... . 265 4,901,261 253 6,436,327 Eighth, St. LouiL ......................... . 105 962,860 98 1,894,983 Ninth, Minneapolis .. .. ................... . 47 312,-1,48 55 498,560 TENTH, KANSAS CITY ............ 88 1,060,074 115 879,447 Eleventh, Dallas ............................. . 27 710,082 46 539,916 Twelfth, San Francisco .................. 212 !.,192,461 325 4,110,842 Total, U. S. June............................ Savings Accounts Savin~s Dcposit1 50 Banks July 1, 1929..................................................... . June 1, 1929................................................... . January 1, 1929 ............................................. . July 1, 1928..................................................... . 52 Banks J126,1,48,03-4 404,952 403,527 392,610 382,780 127,200,909 128,102,660 127,076,249 Life Insurance Sales of new paid-for ordinary life insurance written by seventy-eight companies, having 88 percent of the total legal reserve life insurance in force, amounted to $61,276,000 for June in the seven Tenth District states. The total is compared with $63,53'.l,ooo for May and $61,450,000 for June 1928. Sales for the half year were 1,358,735,000 against $359,785,000 in the first half of 19'.J.8. Business Failures Business failures in the Tenth Federal Reserve Distr-ict were more numerous by 10.9 percent during the first six months of 1929 than in the corresponding six months of 1928. However, the aggregate of indebtedness involved in the half-year failures 1,947 29,827,073 Trade •ReYised SAVIN GS: Reports of a selected list to fifty-two banks located in cities of the Tenth District show the aggregate of savings deposits on July I was smaller than either one month earlier, six months earlier, or a year earlier. On the other hand, the number of savings accounts reported by fifty banks on July 1 showed increases over each of the former periods mentioned. The totals follow: 1,767 $ 31,374,761 WHOLESALE: The volume of wholesale distribution in the Tenth District during the month of June and the first six months of 1929 was on practically the same level as in the corresponding month anG six months of 1928, accordin~ to the reports of indentical firms handling five lines of merchandise. Their combined sales in dollars for the month of June were one-tenth of I percent below those for the same month last year, and for the first six months eight-tenths of I percent below those for the like period last year. · By separate lines, the reports show June sales of drygoods and groceries decreased and sales of hardware, furniture and drugs increased, as compared with those for June of last year. For this year's six months sales of drygoods and groceries showed decreases, and sales of hardware, furniture and drugs showed increases over the six months period of 1928. Inventories of reporting wholesale firms at the close of June revealed the stocks of drygoods, groceries, hardware and furniture were smaller and stocks of drugs were larger than one month earlier. As compared with June 30 last year, stocks of drygoods and groceries were smaller, while stocks of hardware, furniture and drugs were larger. RETAIL: Sales of depa.rtmcnt stores in cities throughout the Tenth Distridt in the twenty-five tradini days of June were 3maller by 12.2 percent than in the twenty -six trading days of May, but were larger by 2.8 percent than in the twenty-six trading days of June 1928. The accumulated total of sales for the first six months of this year was larger by 3.7 percent than for the like period in the preceding year. The reports of twenty- WHOLESALE TRADE IN THE TENTH FEDERAL RESERVE DISTRICT SALl!.S OuTSTANDINGS COLLECTIONS STOCK.S Reporting June 1929 compared with June 30, 1929 compared with June 1929 compared with June 30, 1929 compared with Stores May 1929 June 1928 May 31, 1929 June 30, 1928 May 1929 June 19:28 May 31, 19:29 June 30, 1928 8 - 3.1 Even -10.6 - 23.7 J.7 - 1.5 I.8 - 3.9 Dry Goods ........ ·······················-······· Groceries ........................................... . 6 - 5.6 -12.1 - 2.2 - 7.9 I.4 - I.I - 8.2 --13.4 . 11.6 7.8 7.4 10.7 - 8.4 2.8 - 4.3 7.9 Hardware..·-······································· 9 Furniture-....................................... . -14.8 6.3 - 1.5 6.6 - 8.o 4.3 - 6.o 15.5 7 Drugs...........~ ................·.. · ................ . - 0.9 2.5 1.4 21.2 - 4.9 9.6 - 0.5 - 0.1 4 RETAIL TRADE AT 35 DEPARTMENT STORES IN THE TENTH FEDERAL RESERVE DISTRICT S ALES STOCKS (RETAIL) STOCK TURNOVER Stores June 1929 6 Months 1929 June 30 1929 Report- compared to compared t9 compared to ing June 1928 6 Months 1928 May 31, 1929 June 30, 1928 Kansas City ......... . 4 4.6 0.04 - 6.8 0.8 Denver................... . 5 I.8 . 2.5 - 6.3 - 3.2 Oklahoma City..... . 3 . 3.3 10.4 . - 9.6 1.6 Omaha................... . 4 0.3 3.4 ' - 5.0 - 6.2 Lincoln._ ................ . 2 3.7 - o.8 - 4.4 1.8 1 Topeka._ ................ . 3 ' ,0.5 ,_, 1.8 ,- 3.8 - 5.5 4 ' 'i3.3 , '/ IO.I -, -1 1.0 18.6 Tulsa ..................... . 1 IO 5.7 . 8.7 2.9 - 5.3 Other Cities·-········· June June 30 1929 compared to 1929 1928 1929 1928 May 31, 1929 June 30, 1928 ,22 ,21 1.34 1.36 - 6.1 3·3 .20 .19 1.15 1.05 - 1.2 - 2.7 .23 .23 1.61 1.51 - 3.4 16.0 .22 .21 1.42 1.35 -11.8 7.4 .18 .18 1.18 1.25 0.9 22.4 2 .15 .14 .94 .9o - 53.5 .19 .22 1.45 1.65 - i·9 22.8 .15 .l4 .90 ,90 - 3.0 4•3 Total...................... 35 2.8 3.7 - 6.7 - 0.5 .21 .20 1.28 1.23 - 4.2 NOTE: Percentage of collections in J une on accounts May 31, all stores reporting 41.2. Collections same month last year 42.0. two stores indicate June sales were larger than in the same month last year, while sales of thirteen stores showed decreases. June sales of reporting special line stores, including men's and women's apparel, and shoes, were 7.8 percent larger than in June of last year, while sales of reporting retail furniture stores were 6.1 percent smaller than a year ago. Stocks of reporting department stores at the close of June showed a reduction of 6.7 percent as compared with May 31, and were five-tenths of I percent below June 30 a year ago. Stocks of special line stores and also of furniture stores were larger than on June 30 last year. COLLECTIONS: Collections of department stores during June represented 41.3 percent of their total outstandings at the close of May, which compares with 42.0 percent collected in June of last year. Wholesale reports indicated collections in June were generally good, about equal to June oflast year, and slightly in excess of May of this year. Distribution Duringthe first half of 1929 loadings of revenue freight in the United States totaled 25,596,938 cars, the largest number of cars loaded for the like period on record. This total represented an increase of 4. 6 percent over the 24,461,773 cars loaded in the first half of 1928, and an increase of three-tenths of I percent over the 25,521,040 cars loaded in the first half of 1927, which was the previous high record. Car loadings by classes for the twenty-six weeks from January I to June 29, 1929, as compared those for the like periods in the two preceding years, follow: 1929 Miscellaneous .. .. ..................................... . 9,854,494 Mdse. and L. C. L................................. 6,577,618 C0?! .. _..................................................... . 4,467,233 Forest products.- ................................... . 1,699,209 Grain .......... ............................................. . 1,o95,494 Ore_ ......................................... · .............. . 904,053 Livestock ................................................. . 674,263 Coke......................................................... . 324,574 1928 9,3o4,769 6,550,644 4,141,215 1,703,898 1,107,326 642,244 739,ao 272,557 1927 9,431,6u '6,631,409 I ' 4,783,575 '1,781,884 '1,056,426 800,330 ~ 736,744 . 300,061 While separate figures by regional districts are not available for publication in this issue of the Monthly Review, the reports indicate that the three regional districts which serve the Tenth Federal Reserve District showed increases in total loadings of commodities over the corresponding period in 1928. According to reports received by the Shippers Advisory Boards in thirteen regional districts of the United States based on freight car requirements of producers and distributors, prospective carloadings during the third quarter of 1929 would exceed the actual carloadings during the third quarter of 1928. The figures reported by the Trans-Missouri-Kansas Shippers Board, COLLECTIONS ACCOUNTS RECEIVABLE 6 Months June 1929 compared to May 1929 June 1928 3.8 - 3.0 - I.I 0.7 - 1 5· 2 6.2 1.0 - 0.7 II.2 7.9 - -10.6 - 6.3 -II.7 6.8 - 5.8 5.5 11.0 o.8 3.7 which serves a part of this Federal Reserve District indicate 618,318 cars would be required during the third quarter of the year as compared with actual loadings of 581,059 cars in the third quarter of 1928. Lumber Reports of identical mills to the National Lumber Manufacturers Association, covering eight weeks ended July 6, show United States production of softwoods lumber was 3 percent below, shipments 8 percent below and orders 10 percent below the totals for the eight weeks ended July 7, 1928. Production of hardwoods during the eight weeks showed an increase of 3 percent, shipments an increase of 4 percent and orders a decrease of I percent as compared with the same period last year. Carloadings of lumber in the United States for the year to June 29 show slight increases over the corresponding six months of last year. The figures of the American Railway Association, (applying the percentage of lumber loadings of forest products loadings), follow: Lumber- No. Cars 26 Weeks 1929 1928 E asL .. ...... ...... .. ······-········ ········ 79,009 82,338 South.. ............ ...... ............ ....... 334,302 323,591 West.......... ................ .. ... ....... .. 347,307 352,652 Total U.S................................ 760,618 Lumber- M Bd. Ft. 26 Weeks 1928 1929 1,541,038 I,478,73 2 6,201,z98 6,406,564 7,382,417 7, 2 i 0 ,S25 758,581 15,155,821 15,1:24,753 RETAIL LUMBER TRADE: Sales of lumber at 179 retail yards in this District were reported as 5,421,000 feet for June as compared with 6,682,000 feet in May and 5,199,000 feet in June of last year. Stocks of lumber at the reporting yards were 47,688,000 feet at the close of June, as compared with 48,037,000 one month earlier and 45,540,000 a year ago. The percentage of increase or decrease for June over the preceding month and the corresponding month last year is here shown for each of the iterns reported: Sales of lumber, bo2.rd feet .................... ............. . Sales of all materials, dollars .... ·-·····•···················• Stocks of lumber_·-··--··-·······················•···········- .... . Outstandings, end of month ....... .................. ........ . Collections during month .............. ...................-... . June 1929 Compared to May 1929 June 1928 -18.8 4•3 -20.4 5.r - 0.7 4.7 - I.I - 2.2 - 5.6 3.2 Cement The production of Portland cement at mills in the Tenth District during June was larger by 6.3 percent than in June of last year, while production for the first six months of the year was sm aller by o.8 percent than in the corresponding six months of the preceding year. Shipments from mills in this District 5 THE MONTHLY REVIEW ===================================== in June increased by 7.7 percent over a year ago and shipments for the first six months of the year were smaller by 0.1 percent than for the like period in the previous year. Production and shipments of Portland cement for June and the first six mon ths of the year, with last year's figures for comparison, are here shown for the District and the United States: JUNE 1928 1929 Barrels Barrels 1,414,000 1,330,000 1,462,000 1,357,000 SIX MONTHS 1928 1929 Barrels Barrels 5,940,000 5,98 7,000 TENTH DISTRICT Production............................ Shipments............................ 5,923,000 5,926,000 United States Production ........................ 16,775,000 17,497,000 75,048,000 77,061,000 Shipments ............................ 18,939,000 18,421,000 70,238,000 73,953,000 Stocks of finished cement at Tenth District mills totaled 2,099,000 barrels at the close of June as compared with 2,056,000 barrels one year ago. Stocks at all reporting mills in the United States totaled 27,433,000 barrels at the close of June against 25,029,000 barrels one year ago. Building The value of building contracts awarded in the Tenth Distri ct in June, and also the value of building permits granted in eighteen leading cities of the District during the month, declined sharply from the year's peak totals recorded for May, and this year's June values of both contracts awarded and permits granted were lower than those for June of last year. , , The J une totals carried the aggregate value of contracts awarded in the District during the first half of I 929 to a figure which was 9.2 percent below that for the corresponding first half of 1928, while this years' value of permits issued in cities was 8 percent higher than in the same period last year. A summary of contract awards in the District reported by the F. W. Dodge Corporation, and of permits in nineteen cities reported direct to the Federal Reserve Bank of Kansas City, follow: SIX MONTHS JUNE 1929 1928 1929 1928 Contract Awards·---··· $19,654,429 $28,o69,641 $n7,370,328 $129,210,678 Value of Permits.......... 7,977,860 10,241,729 53,357,248 49,414,727 The returns from the nineteen cities which report their building sta tistics to this Bank are shown in detail for June and the first six months of the year, with last year's figures for comparison, in the accompanying table. Zinc and Lead During the first twenty-six weeks of this year, ending June 29, producers in the Tri-State District sold and shipped 324,732 tons of zinc ore valued at $13,708,691, and 56,880 tons of lead ore valued at $5,294,II9. This year's six months shipments of zinc ore was an increase over the corresponding period last year of 25,181 in tonnage and $2,324,054 in value; while for the six months period lead ore shipments increased by 10,261 tons and $1,557,099 in value. Shipments and their values by states: SHIPMENTS IN TWENTY-SIX WEEKS ZINC ORE LEAD OR.E Tons Value Tons Value Oklahom...__ _ _ ...........:........ 203,192 $ 8,589,953 35,000 $3,265,624 Kansas.... ...... II 5,495 4,862,099 21,284 1,973,474 Missour· 6,045 256,639 596 55,021 26 Wks. to June 29, 1929 .......... 324,732 26 Wks. to June 30, 1928 .......... 299,551 $13,708,691 u,384,637 $5, 2 94, 11 9 3,737,020 Demand for zinc ore increased during June, after six weeks of slackening, and total shipments of 49,588 tons during the four weeks ending June 29 were larger than in the preceding four weeks, but slightly less than in the same period last year. Lead ore shipments of 7,045 tons during the four weeks ending June 29 were smaller than in the preceding four weeks and the like period in 1928. Shipments for the four-week period, with comparisons, follow: SHIPMENTS I N FOUR WEEKS LEAD ORE ZINC ORE Tons Value Tons Value 4,967 $ 447,030 Oklahoma .. - · · - · · - - - - - 32,085 t, 1,411,740 Kansas.. _ _ _ _ _ __ 2,023 182,070 . 16,078 707,432 Missour·..._ _ _ _ _ _ __ I ,42 5 62,700 55 4,950 4 Wks. ending J une 29, '29.___ 49,588 4 Wks. ending June 1, '29·-·-··· 39,098 4 Wks. ending June 30, '28.____ 50,224 $ 2,181,872 1,720,312 2,008,960 7,o45 7,474 II,985 $ 634,050 The price paid producers for zinc ores during the four weeks period was $44 per ton as compared with $40 per ton last year. Lead ore producers received $90 per ton during the four weeks as compared with $82.50 last year. BUILDING IN JUNE AND THE HALF YEAR IN TENTH DISTRICT CITIES Six MoNTHS MONTH OF JU NE Permits VALUE Percent Permits Value Change 1929 1928 1928 1929 1928 1928 1929 1929 Albuquerque, N. M ....................·-····································· 76 $ 111,586 $ 156,566 -28.7 420 93 517 t, 1,151,625 $ 928,815 8 6 1,170 201 .3 18,655 Casper, Wyo...·-··-····· 46 55,6j5 --------·---···--------·····--------3,5 25 44 Cheyenne, Wyo .................................................................. 166 32 48 122,907 58.0 176 77,780 541,055 357,551 Colorado Springs, Colo ...................................................... 418 65 72 169,718 -47.6 88,854 508,505 545,336 349 Denver, Colo...................................................................... 567 9,208,200 613 1,070,800 11,892,350 2,311,750 -53.7 3, 144 3,434 Hutchinson, Kans .............................................................. 61 280 689,629 121,835 27.0 50 IH,730 71o,990 4o5 159 266 ,841,729 40 48,675 71,837 -32.2 '24 335,469 Joplin, Mo_··-··-································································ Kansas City, Kans ......................................... ·- ················ 107 78 896,185 75,780 424 I 5o,495 -49.6 556 954,795 8,451,200 242 1,254 Kansas City, Mo ............................ ·-······························- 218 1,503 6,094,500 1,869,575 -59-4 759,350 1,408,442 1,728,278 237,385 295,635 - 19.7 5o6 Lincoln, Nebr_·····················-·······························-············ 94 90 54° 16 Muskogee, Okla ................................................................. 128 284,780 32 252,279 54,870 ~6 74,635 --26.5 235 Oklahoma City..................................................:................. 290 1,544 1,856 II,312,020 1,838,665 1,523,625 20.7 9,149,647 Omaha, Nebr...................................................................... 1 35 u6 61.1 2 ,453,75 2 2,704,468 834,600 51 7,967 567 578 Pueblo, Colo........................................................................ 107 153 805,488 882,330 105,690 120,:273 -12.1 650 807 20 122 130 23 63,896 8643853 845,764 454,02 5 -85.9 Salina, Kans.·-···································································· St. Joseph, Mo ...................................... _ ........................... 122,800 46 251 361 71 671,647 51,383 139.0 435,277 Topeka, Kans...................................................................... 68 1,189,631 105 258,780 -67.3 85,710 834,290 477 557 Tulsa, Okla.......................................................................... 339 1,333, 190 1, 22 5,735 8.8 1,830 2,030 6,862,109 7,284,478 35° 1,337 Wichita, Kans.................................................................... 2 53 214 1,229 9.6 864,847 788,945 3,247,69 5,37 2,565 Total 19 Cities .....·-······················································: .... 2,489 2,668 672,660 988,711 1,7,977,860 t,10,241,7z9 -22.1 13,94 2 15,215 $53,357,248 1,49,414,727 Percent Change 24.0 198.5 -33-9 7.2 22.6 3.1 -6o.1 - 6.1 --'27.9 -18.5 -11.4 23.6 - - 9.3 9.5 2,2 54.3 -29.9 6.2 65:4 8.o 6 THE MONTHLY REVIEW Bituminous Coal Petroleum The output of crude oil in the Tenth District continued to rise during June and the daily average of 865,500 barrels for the month was the highest since last February and 51,200 barrels above the daily average for June I 928. Gross production for the thirty days of June totaled 25,965,000 barrels, compared with 26,530,000 barrels for the thirty-one days of May ~nd 24,427,000 barrels for the thirty days of June in the preceding year. The recent increase in production carried the Tenth District total for the first half of 1929 to 156,555,000 barrels, against 151,813,000 barrels produced in the first half of 1928, an increase for this year's first half of 4,742,000 barrels, or 3.1 percent, The crude oil output in this District during the current year to date was approximately one-third of the total production in tho entire United States. The following figures show the estimated production of crude oil in each of the five producing states of this District for the month of June and first six months of 1929 and 1928: *June 19:29 June 19:28 *6 Mos. '29 6 Mos. ':28 Barrels Barrels Barrels Barrels Oklahoma ............................ '.20,53:2,000 19,045,000 1:26,:27 5,000 119,:213,000 Kansas.................................. 3,623,000 3,:257,ooo 19,431,000 20,:249,000 Wyoming ................................ 1,517,000 1,835,000 9,165,000 10,5-45,000 Colorado .... -........................ 225,000 2:25,000 1,:236,000 1,374,000 New Mexico........................ 68,ooo 65,000 448,000 432,000 TotaL_···-···························· 25,965,000 24,427,000 *Estimated for June, American Petroleum Institute. l 56,555,000 151,813,000 Returns from the various fields show the number of wells completed during June and the hal~ of the year was smalle~ than in the corresponding month and six months of the preceding year. However, the daily average barrels new production was larger for June and the six months than in 1928, and it was also noted that dry wells and gas wells were fewer than last year. Development work under way showed but little change during the past month, although 222 more wells were drilling on July I than on the corresponding date last year. The reports by states: Barrels Daily Dry Gas Rigs-Wells Completed New Production Wells Wells Drilling Oklahoma .......... ........ -.. 241 So 16 858 61,.p:2 Kansas............................ 75 19,:256 31 345 5 l 1,106 Wyoming........................ 16 0 180 3 Colorado.........._.............. 9 : ix,089 I 98 4 New Mexico.... _............ 4 0 0 125 4 Wells f June 19:19........................ May 19:29--···················· June 1928 ......... ·-············ 6 Mos. 1929.................... 6 Mos. 1928.................... 345 382 419 2,365 2,656 82,873 82,929 61,853 586,081 4 u,669 122 146 169 891 982 2:2 37 41 1 93 1,606 1,623 1,384 360 Refinery operations in Kansas and Oklahoma, which in the past three months were at high record level, showed some slackening of activity at the beginning of July,_due to the piling up of gasoline stocks. The number of plants in operation in these two states, and the average daily run of barrels of crude oil to refinery stills, is here shown for July 1, as compared with one month earlier and a year ago. Plants Operating 58 July 1, 1929........,·······································-········-·········· 60 June 1, 1929-................................................................. . July 1, I 928........................................ ,............................ . 54 Daily Runs to Stills 309,:200 323, 2 55 2 92 , 2 75 Productive activity at the soft coal mines through this District slackened in June, as is usual for the summer season, and the output for the month was smaller than in May by 11.9 percent, and smaller than in June of last year by 9.1 percent. Cumulative production for the first six months of the year, however was larger than in the like period o ·1ast year by 4.3 percent. The'tonnage produced during the month and six months follow: Colorado.--······················· Kansas ............................. . Missouri ........................... . New Mexico .......... ......... . Oklahoma.·-·····-·············· Wyoming ......................... . TotaL ......:.................. ..... *June estimated. *June 1929 Tons 437,000 125,000 219,000 183,000 150,000 354,000 June 1928 Tons 171,000 370,000 *6 Mos. '29 Tons 4,651,000 1,:215,000 1,747,000 1,310,000 1,466,000 3,044,000 6 Mos. '28 Tons 4,477,000 1,113,900 1,575,000 1,5:21,000 1,245,000 2,944,000 1,468,000 1,615,000 13,433,000 12,875,000 557,000 94,000 218,000 205,000 Production of soft coal in the United States during the calander year to July 6 totaled 260,628,000 tons, as compared with 239,319,000 tons for the Jike period in 19'l8. Flour Production Mills in the Tenth District made 27,291,441 barrels of flour during the wheat year 1928-29, ended June 30. This was 2,330,673 barrels or 9 .3 percent more flour than was produced in the preceding wheat year 1927-1928 and was 2,619 barrels or 0.01 percent less than was produced in the wheat year 19261927 which was the peak of flour production in this District. The yearly output shows the Tenth District retained first rank in flour production in the United States. The mills in this District were operated during June at 67 percent of their full time capacity, as against 69.6 percent in May and 56.7 perc~nt in June 1928. Total production of 2,071,389 barrels for the month, while reflecting a seasonal decline of 259,983 barrels from May, showed an increase of 312,437 barrels over production in June of the preceding year.and was the largest June output of flour on record. . . . . Production of flour by reporting mills at leadmg centers 1s here shown for June and the wheat year, as compiled from the Northwestern Miller's weekly reports: Month of June 1929 1928 Wheat Year 1928-29 1927-28 122,369 ° • 106,199 1,501,566 682,863 534,090 7,854,993 85,411 ' 86,419 1,194,039 130,74:2 I ' ~ J'l4,177 1,984,91'2 110,862 97,649 1,582,653 173,o66 123,609 t,947,428 766,076 686,809 11,225,850 1,385,473 7,496,767 1,205,814 1,942,915 1,555,295 1,783,4II 9,588,093 Tutal... ....·- ·· ································ 2,071,389 1,758,952 27,:291,441 24,957,768 Atchison ........................................ Kansas City._ ............................... Omaha .. ....................................... . Salina ............................................ St. Joseph .. ................................. . Wichita·-······································· Outside......................................... . I Meat Packing Reports from the six leading meat packing centers in the Tenth District show smaller numbers of cattle, calves and sheep and larger numbers of hogs were slaughtered in June than in either the preceding month or the corresponding month last year. In fact, the June slaughter of cattle and calves wa-s the smallest for that month on eleven year's records. However, the June slaughter of sheep was, with the exception of June 1928, the · largest on record for that month, while the slaughter of hogs was the largest for the month of June since June 1924. Slaughtering operations at meat packing centers during the first half of the year, as reflected by packers' purchases. of meat animals at public stock yards, including direct shipments to their own yards, showed decreases in the slaughter of cattle, calves and hogs and an increase in the slaughter of sheep as compared with the first six months of 1928. THE MONTHLY REVIEW Kansas CitY-··············-·· Omaha....... ·-·-·-·············· St. J eseph .........- ............ Denver·-···················-······ Oklahoma Ci tY··-··--······ Wichita_ .... ··-·················· Cattle 102,884 106,623 33,823 29,085 18,842 n,529 JUNE MOVEMENT OF LIVESTOCK IN THE TENTH STOC!t.ERS AND FEEDEU R:a:cuna Calve, Hogs Hoga Cattle Calves Sheep 18,222 • 123,066 10,659 23, 134 363,944 3,5 17 156,u6 2,589 9,368 4,340 300,544 859 1,900 150,222 106,283 5,408 5,754 73 2 1,310 4,628 16,791 47,600 3,74 1 3 1, 235 6,922 i,558 33,358 84,061 9,364 3,59 2 963,364 June 1929_··-·····-··········· 302,786 4J,II2 44-4,987 May 1929........................ 344, 239 49,443 673,608 991,101 June 1928 .......·-·············· '-97,433 47,885 528,033 974,833 6 Months 1929..............- 1,997,991 288,036 6,057,516 4,012,224 6 Months 1928 ................ 2,187,250 301,872 •• 6,3 15,514 3,79 2,5 24 *Includes 1-48,633 direct shipm~nts of hoga to packen' yard,. **Revised. •• 55,047 89,096 50,668 396,756 453,779 Livestock During the first six months of the present year 12,355,767 meat animals were received at the six leading Tenth District markets. This total wai. 24I ,393 or 1.9 percent, smaller than the 12,597,160 meat animals received in the first 1oix months of 1928. Cattle arriving at the six leading markets from farms, ranges and feed lots during the half year period totaled r,997,991, a decrease of I 89,259 from the corresponding period in 1928, and the smallest cattle receipts recorded for any preceding half year in the eleven years these statistics have been compiled by this Federal Reserve Bank. Receipts of 288,036 calves were 13,836 less than in the same period last year and the smallest first half year receipts since I 922. Marketings of hogs during the first half of this year totaled 6,057,516. This was 257,998 less than the total marketed in the first half of r 928, though with this exception this year's receipts were larger than in the corresponding period in each of the three years preceding 1928. Sheep receipts during the first half of the year were 4,012,224, an increase of 219,700 over the corresponding period last year and the largest first six months total on eleven years' records. June supplies of all classes of meat animals at the six markets were smaller than in May, as the accompanying tabulation of receipts indicates. As compared with June of last year, the returns for this June show an increase of r.8 percent in cattle receipts, although there were decreases of 10 percent in calvea, 1. 2 percent in hogs and 15. 7 percent in sheep. HORSES A D MULES: In the horse and mule division, receipts for the first six months of the year were 72,009, an increase of I, I 82, over the first six months oflast year and the largest first half year receipts since 1920. Receipts of horses and mules in June were 4,980 head, as compared with 5,099 in May and 4,953 in June a year ago. JUNE PIG SURVEY: A decrease of 8 percent in the spring pig crop in the United States, equivalent to about 4,300,000 pigs, is indicated by the June pig survey of the United tates Department of Agriculture. The decrease in the eleven corn belt states is placed at 6 percent, equivalent to about 2,500,000 pigs. The survey shows percentages for Nebraska and Kansas averaged higher than for either the corn belt or the entire country. Percentages follow: Pigs Saved Sows Farrowed Average Spring 1929 Spring 1929 Pigs per Compared to Compared to Litter Spring 1928 Spring 1928 Spring 1929 Nebraska ................................ 97.4 91.4 5·3 Kansas............................ 97.2 101.7 5.5 Missouri.......................... 91.4 93.7 5.8 Corn Belt........................ 93.9 92.3 5.7 United States........ ........ 91.6 90.3 5.67 Sows Bred for Fall 1929 Compared to Fall 1928 114.3 119.0 109.7 117.1 I 17.8 8,849 8,357 6,067 16,458 16,460 45,956 n6,941 104,027 47,695 15,966 DISTRICT Sheep 7,285 3 1,33 1 7,807 8,448 54,871 88,167 79, 253 533,751 44 2,75'.2 Pua.CHASED Foa. SLAUOHTn. Calve, Cattle Hoga Sheep 108,340 291,429 53,390 13, 293 • 222,741 3,4o9 II9,199 73,795 19,886 III,617 4,672 95,740 9,140 2,409 26,315 17,347 10,680 28,676 5,388 1,788 82,030 1,519 5,939 8,373 762,808 172,830 30,690 350,787 178,362 33,830 756,048 437,174 176,077 35,013 76x,973 356,827 1,1 I 5,082 206,785 4,699,677 2,413,762 1,188,969 228,087 •• 5,0 91 ,755 2,269,202 •• STOCKER AND FEEDER MOVEMENTS: During the month of June shipments of stocker and feeder cattle from four markets in the District to the country were 38.2 percent less than in May, but were 8.6 percent larger than in June a year ago. However, the summer movement of cattle from the range country to these markets, on the whole, has not been so large as in former years. In the first three weeks of July) when market runs from the southwest are usually heavy, there was a lack of offerings of cattle for reshipment to the country as stockers and feeders, and the outgo was considerably less than the same period last year. During the first half of 1929 Kansas City, Omaha, St. Joseph, and Denver shipped 396,756 head of cattle to the country as stockers and feeders. This total compares with 453,779 for the same period last year, indicating a decrease of 57,023 head. Shipments of sheep from the markets to the country totaled 533,751 head for the first six months of the year, compared with 442,752 head for the same period last year, indicating an increase of 90,999, or 20.6 percent. The June movement showed a perceptible decline from May and was also smaller than a year ago. THE LAMB CROP: According to the Division of Crop and Livestock estimates of the United States Department of Agriculture, the lamb crop of 1929 is about 1 percent smaller than the crop of 1928 and 7 percent larger than 1927. The indicated Iamb crop for the entire country was placed at 25,976,000 compared with 26,255,000 in 1928 and 24,153,000 in r927. The lamb crop for divisions of states in 1929 and 1928 is reported as follows: Western sheep states 16,645,000 head this year against 17,233,000 head last year;. West North Central states 2,732,000 against 2,640,000 head; East North Central, 3,34r,ooo against 3,216,000 head; all South Central states r,386,000...,against 1,353,000 head; all South Atlantic states, r,177,000 against 1,046,000 head; and all orth :\tlantic, 695,000 - against 737,000: head. The decrease in the lamb crop was in the western states, over 3 percent, or 600,000 head. Texas was the only state in this region where the number of lambs saved per 100 ewes was larger in 1929 than in 1928, and the lamb crop in Texas was over 18 percent larger than in 1928. The largest decreases were in Wyoming, Utah, Nevada, and Oregon. The western lamb crop was 16,645,000 in 1929, compared with 17,233,000 in 1928 and 15,278,000 in 1927. The crop in the native lamb states this year was about 4 perce1_1t, or over 300,000 head, larger than that of 1928. 8 THE MONTHLY REVIEW ...an "'°r-----.---PR-OOU_CTI_ON_Of--~-=r..... MMUfACTUR£$ AND Mlll[IIALS National Summary of Business Conditions Output of manufactures continued in large volume in June while mineral production declined. There was a rise in the general level of commodity prices, reflecting chiefly an advance in agricultural commodities. •t---+--+---+---+--~~ 1125 IIZI 1127 Index numbers of production of manufactures and minerals, adjusted for seasonal variations (1923-25 average,'100) . . Latest figures June manufactures 127, minerals 113. PUI CE.NT 120 t----+-----+----+---1-----1+10 1926 1925 1927 Index of United States Bureau of Labor Statistics (1926 equal 100, base adopted by Bureau). Latest figure June, 96-4- IIIWONS'7DOWUIS 10 SIU.IONS 0,. OOllAR$ ME:MBER BANK 10 CREDIT Monthly averages of weekly figures for reporting member banks in leading cities. Latest figures an average of first three weeks in July. CIH'V( 2000 1 ~UJONJO,OOUNU CORY( 2 RESERVE BANI( CREDIT AND MONEY IN CIRClA.ATION ,oo.___ 192S __.___ _...,___ _. __ 1926 1927 1928 _,___ ___.~500 1929 Monthly averages of daily figures. Latest figures an average of first 21 days in July. PRODUCTIO~ : Activity of manufacturing establishments continued at a high rate in June. Output of automobiles and of iron and steel showed a seasonal decline, smaller than is usual, from May to June. Silk mill activity increased and there was a growth in the daily average production of cement, leather, and shoes. Production of copper at smelters and refineries decreased sharply and output of cotton and wool textiles was reduced, although production in all of these industries continued Iarger than in otherrecent years. The volume of factory employment and payrolls in June showed a small seasonal decline from May, but, as in earlier months, was substantially larger than in 1928. Output of mines was generally smaller in June than in May, reflecting declines in the production of coal, copper, and other nonferrous metals. Output of petroleum, however, increased to new high levels. Reports for the first half of July indicate some further reduction in output of cotton textiles, iron and steel, lumber and coal. Volume of construction contracts awarded decreased further in June and for the first half year awards were 12 percent less than in the same period in 1928, reflecting chiefly a substantial decline in residential building. During the first three weeks of July contracts awarded were larger than in the same period a year ago. AGRICULTURE: Department of Agriculture estimates, based on July first crop conditions report, indicate a wheat crop of 834,000,000 bushels, about 8 percent smaller than production last year, but larger than average production in preceding five years. The acreage of cotton in cultivation on July 1st was estimated at 48,457,000 acres, 3 percent more than a year ago. DISTRIBUTION: During the month of June freight car loadings were slightly smaller than in May, as a result of decreases in loadings of most classes of freight, except grain products and ores. In comparison with other recent years, however, loadings continued to show an increase. Sales of department stores in June, as in earlier months, were larger than in the same month in 1928. PRICES: Wholesale prices, according to the Bureau of Labor statistics index, advanced from May to June on the average somewhat less than they had declined during the preceding month. Farm products, particularly grains, cattle, beef, and hides, showed marked advances in prices. Prices of mineral products and their manufactures also averaged higher in June than in May, the rise reflecting largely increases in the price of petroleum and gasoline. Prices of leacing imports, rubber, sugar, silk, and coffee showed a decline for the month as a whole. During the first two weeks of July wheat and corn continued to move sharply upward, while hides declined slightly in price. Hog prices increased and prices of rubber and tin, which began to advance in the middle of June, continued to rise. BANK CREDIT: During the first half of July the volume of credit extended by member banks in leading cities declined somewhat, following a rapid increase in June. On July 17 loans and investments of these banks were about $400,000,000 above the level at the end of May. The increase reflected chiefly rapid growth in loans to brokers and dealers in securities and also some further increase in commercial loans. The banks' holdings of investments continued to decline and were on July 17 about $700,000,000 below the middle of last year. The total volume of reserve banks credit outstanding showed an increase of about $120,000,000 during the four weeks ending July 17, the increase being in discounts for member banks. Demand for additional reserve bank credit arose chiefly out of a considerable increase in the volume of money in circulation which accompanied the issuance of the new small size currency. There was also some increase in reserve balances of member banks accompanying the growth in their loans and consequently in their deposits. Open market rates on 90-day bankers acceptances declined from 5½ to 5½ percent between the latter part of June and the middle of July, while rates on prime commercial paper remained unchanged. August 1, 1929 THE MoNTHLY REVIEW 9 Farm Crops in the Tenth Federal Reserve District Farm crops in the seven states whose areas or parts form the Tenth District came to July I showing a composite condition of 94.9 percent of their ten-year average on that date, according to the crop reporting board of the Bureau of Agricultural Economics, United States Department of Agriculture. This figure indicates that the crops in the seven states were 5.4 percent lower than the figure reported for July 1, 1928, but 1.4 percent higher than the figure reported for July 1, 1927. The condition of the crops in each state on July 1, 1929, as a percentage of crops on that date during the ten years, 1916 to 1927, inclusive, are here shown with the figures reported for July 1 for three preceding years for comparison: Colorado.--······················· Kansas.............................. Missouri .. - ........................ Nebraska .......................... New Mexico .................... Oklahoma ...·-·················· Wyoming ... Seven States .................... United States.................. July I, 1929 July I, 1928 July 1, 1927 July 1, 1926 100.8 103.3 ;JI.I 93.8 96.6 96.6 109.9 91.8 90.8 85.8 93.8 93-9 102.6 IOI.I 86.I 103.3 IJl.O 104.I _84.2 98.7 107.6 l 89.4 90.9 95.3 96.5 99.8 93.7 97· 2 r 94·9 96.3.~ 100.3 94.2 93 .5 96.5 95·4 9.3.6 The July estimates of the United States Department of Agriculture and State Boards of Agriculture on this year's crop in the Tenth District indicate decreases from last year in production of corn, winter and spring wheat, oats, white potatoes, beans and broom corn. On the other hand, the July 1 estimates gave promise of increased production of tame hay, barley, rye, sugar beets, flax, apples, peaches and pears, with crops of sweet potatoes and tobacco the same as last year, and production of cotton as yet unreported. CORN: The 1929 corn crop from planting time to July I shows an entirely different picture than was the case last year. In 1928 the corn crop was planted in good season and made an excellent start, but was retarded by cold, wet weather the last half of June while in early July the weather cleared, making cultivation and growth possible, and as a result the condition improved greatly during July. This year the situation to July 1 has been just the reverse of last year in a number of the Corn Belt States. The corn crop made a very late, poor start in May and early June, but favorable weather the latter part of June resulted in material improvement over most of the Corn Belt. The July 1 condition reflects the general lateness of the crop and a reduction of 3. 5 percent in the planted acreage as compared with that of last year. The forecast for the District was reported as 452,109,000 bushels, a decrease of 68,126,000 bushels from the crop harvested in 1928. • WINTER WHEAT: Production of winter wheat in this District, as indicated by the condition on July 1, was forecast at 258,903,000 bushels, a drop of 40,421,000 bushels from the estimate of June 1, and 61,337,000 bushels less than the bumper crop of 320,240,000 bushels harvested in 1928. Reports from the large producing areas of Kansas, Nebraska, Oklahoma and Colorado showed wheat prospects declined from June I to harvest time. The decline was attributed partly to premature ripening following a heat wave in June, partly to widespread infestation of straw worm which was not apparent until ripening began and to other causes such as wheat scab and rust which followed an especially hot spring, root-rot and Hession fly, and hail, rain and wind storm damage in local areas. The winter wheat estimates shown in detail in the accompanying table, indicate smaller production than last year in Kansas, Nebraska and Oklahoma and larger production in Colorado, Missouri, New Mexico and Wyoming. SPRING WHEAT: While the acreage sown to spring wheat was increased to some sxtent, the crop came to July I showing a lower percent of condition than last year, with a promise for this District of 12,791,000 bushels, or 1,925,000 bushels less than production in 1928. OATS: The acreage seeded to oats in this District this year was about 8 percent smaller than in the preceding year and the forecast of July 1 indicated probable production of 146,976,000 bushels, a decrease of II,798,000 bushels from the production of 1928. • BARLEY: This year's barley acreage was about 27 percent larger for the District than the acreage harvested last year, and the forecast of 49,003,000 bushels compares with 47,752,000 bushels harv~sted in 1928. RYE: This year's rye crop was estimated at 6,093,000 bushels as compared with last year's yield of 5,810,000 bushels. WHITE POTATOES: There was a considerable reduction in the acreage planted to potatoes in the spring, and the July ESTIMATED PRODUCTION OF LEADING FARM CROPS IN SEVEN STATES AND THE TENTH FEDERAL RESERVE DISTRICT Forecast of the United States Department of Agriculture as of July 1, 1929 Condition, and Compared with the. Final Estimates for 1928. (Figures are in thousands of bushels of grain and potatoes, and in thousands of tons of hay~ omitted) CORN WINTER WHEAT SPRING WHEAT OATS BARLEY POTATOES TAME HAY 1929 1928 1929 1928 1929 1928 1929 1928 1929 1928 1929 1928 1929 1928 Colorado ............ - 17,437 18,694 13,052 II,076 6,251 7,488 4,884 5,983 12,558 13,128 13,202 13,420 2,358 2,497 17,66 1 • 4,9°5 Kansas.................. n9,228 179,n8 138,393 177,361 517 472 32,2n 37,729 1 4,0 75 7,56o 3,I77 3,539 Missouri._ ............. 140,625 181,540 22,571 18,999 126 195 36,250 47,768 580 · 374 !1'. ,5,506 10,285 4,988 4,I83 Nebraska.............. 233,999 212,701 55,138 66,697 2,899 3,222 76,101 78,936 18,421 14,0I8 8,014 10,080 3,860 3,351 New Mexico........ 3,887 3,482 3,145 1,500 715 554 1,146 720 277 · 228 122 132 475 407 Oklahoma .. _........ 49,498 70,150 44,972 59,576 21,924 23,140 600 ' 506 3,569 5,040 903 841 Wyoming·-··········· 2,714 3,006 984 930 2,652 3,168 4,911 4,092 3,007 '2,310 1,919 2,352 1,227 1,224 ,· - - - Seven States .. _...• 567,388 668,691 278,255 336,139 13,160 15,099 177,427 198,368 *TENTH DISTRICT 452,109 520,235 258,903 320,240 12,791 14,716 146,976 158,774 United States ...... 2,662,050 2,835,678 582,492 578,133 193,099 231,288 1,247,147 1,448,677 *The Tenth District embraces the states of Colorado, Kansas, Nebraska, and Wyoming; the western New Mexico, and all of Oklahoma except 8 southernmost counties. 49,518 48,225 37,237 48,869 16,988 16,042 49,003 47,752 32,459 40,120 12,631 12,381 317,264 . 356,667 . 379,~9° 464,483 98,99 1 92_,983 19 counties of Missouri, the northern 13 counties of • • August THE MONTHLY REVIEW IO forecast was for 32,459,000 bushels, as against 40,120,000 bushels produced in the District in 1928. TAME HAY: Farmers throughout the District increased their tame hay acreage by 1.6 percent. The crop has made very good progress, considering weather conditions, and production on July I was estimated at 12,631,000 tons, as compared with 12,381,000 tons produced in 1928. Present indications point to about the average yield of wild hay. I, I 929 BROOM CORN: The broom corn crop in five states of the District was estimated at 46,500 tons, as compared with 48,280 tons in 1928, a decrease of 1,780 tons. The promised crop for the District represents 89 percent of the entire United States crop of broom cornestimated as of July 1. FLAX: Production of flax was estimated at 391,000, bushels, an increase of 99,000 bushels over production of the previous year. SUGAR-BEETS: This year's sugar beet acreage in irrigated sections of Colorado, Nebraska and Wyoming is 383,000 acres, compared with 311,450 acres last year. Estimated production in the three states was reported in July as 4,376,000 tons against 3,877,000 tons harvested in 1928. The sugar beet area in this District represents 49 percent of the entire United States area planted to that crop for this year's harvest. FRUITS: The reports on fruits indicated increases over last year in the District's production of apples, peaches and pears. The apple forecast was 10,440,000· bushels, an increase of 1,197,000 bushels. Peaches were estimated as 3,594,000 bushels against 1,723,000 bushels last year. The pear crop was placed at 1,260,000 bushels or 869,000 bushels more than the crop of 1928. SWEET POTATOES:"'" Production of sweet potatoes in the four leading producing states in the District was forecast as 3,314,000 bushels, the same as reported for last year. Grain Marketing BEANS: The bean crop in Colorado, Nebraska, New Mexico and Wyoming was estimated at 2,652,000 bushels for this year as compared with 2,717,000 bushels harvested last year. The reduction in the forecast was ascribed to a decrease in the acreage planted. • COTTON: The Crop Reporting Board of the-United States Department of Agriculture estimates the acreage of cotton in cultivation on July I to be 48,457,000 acres, an increase of 3.2 percent above the acreage on July 1, 1928, when 46,946,000 acres were estimated to have been in cultivation. The estimate relates to acreage standing on July 1, allowance having been made for any acreage which was abandoned prior to that date and for any acreage replanted and in cultivation on that date. The major part of the increase in acreage has taken place in the eight states lying west of the Mississippi River, constituting the Southwest Cotton Belt, which contains 63.3 percent of this year's entire United States acreage of cotton in cultivation on July I. The following shows the acreage by states with the percentage of increase over last year: · ACREAGE IN CULTIVATION SouTHWEST BELT J uly 1, 1929 July t, 1928 Texas...... . . .. .............. .... .............. ........... 18,697,000 18,330,000 Oklahoma........ ............................... ...... 4,685,000 4,420,000 Arkansas ...... .............................. :........... 4,064,000 3,834,000 2,052,000 ~~!~:~~:::::::::::::::::::::::: ::::::::::::::::::::::: California................................................ Arizona.................................................. New Mexico.......... ................................ • Eight S. W. States................................ SOUTHEAST BELT Mississippi................................ ............. Georgia.................................................. Alabama...................................... ......... .. South Carolina...................................... North Carolina...................................... · Tennessee................................................ Florida.................................................... Virginia........ .......................................... 2,~;~:= 355,000 % Increase 2.0 6.o 6.o 8.o - 5.0 319,000 226,000 132,000 223,000 202,000 123,000 43.0 12.0 7.0 30,676,000 29,539,000 3.8 4,403,000 3,922,000 3,789,000 2,410,000 1,9II,ooo 1,122,000 111 ,ooo 89,000 4,154,000 6.o 3,883,000 3,643,ooo :2,485,000 1,892,000 1,145,000 101,000 l.O 81,000 Eight S. E. States·--····························· 17,757,000 17,384,000 United States ·--··································· • 48,457,000 46,946,000 *Includes 24,000 this year and 23,0:x, last year in' 'other states'' - 4.0 1.0 l.O - 2.0 10.0 10.0 2.1 3.2 During the wheat crop year which began July I, 1928 and ended June 30,1929, receipts of wheat at the five leading grain markets of the Tenth District were 235,776,960 bushels, an increase of 72,951,610 bushels, or 44.8 percent, over t_he 162,825,350 bushels received during the previous wheat year 1927-28. Arrivals of wheat at the five markets in June were larger by 160.2 percent than in the corresponding month last year. The large increase was due in part to new crop wheat having an earlier start to the markets than last year. Receipts of wheat at the five markets for June and the crop year, with comparisons follow: CROP JUNE 1929 1928 1928-29 Hutchinson .... ....................... . 2,979,45° 483,3 00 42,989,400 Kansas CitY·- ·····-···········---·-··· 5,136,560 1,871,870 106,673,710 Omaha .................... ............... 1,504,000 628,800 42,848,000 St. Joseph .... ...... ........ ........... 351,400 281,400 II,664,800 Wichita·- -······························· 2,644,600 1,583,550 31,601,050 YEAR 1927-28 I 5,942,150 80,140,350 36,468,400 9,129,400 21,145,050 TotaL ................................. ... 12,616,010 4,848,920 235,776,960 162,825,350 The movement of new wheat from the Southwestern winter wheat belt became increasingly heavy through July • While complete data is not available, reports indicate receipts at the primary markets in this District were close to the record receipts of ayear ago when a larger crop was harvested. While the storage capacity on farms and at shipping points has been greatly increased, the advance in prices and the excellent condition for shipping have been incentives to heavy marketing. Receipts of corn, oats, rye, barley and kafir at the five markets in June and the first six months of the year, with the totals for June and the first six months of 1928, follow: Corn Hutchinson .................... 266,250 Kansas City.......... .. ...... 2,607,000 Omaha ............................ 1,534,4oo St. Joseph .... .. ................ 724,500 228,800 Wichita .... .... .................. June 1929·- - ··················· May 1929·- ····················· June 192L..................... 6 Mos. 1929.................... 6 Mos. 1928.................... Oats 364,000 332,000 84,000 6,000 Rye 14,000 786,000 14,000 5,36o,950 810,500 22,500 3,786,500 4,430,200 637,000 26,900 41,430,250 6,000,000 310,100 53,367,200 6,845,000 47 1,400 Barley 15,000 75,200 28,800 5,250 19,500 143,750 150,850 55,900 992,35° 553,900 Kafir 223,600 667,700 3,000 18,200 912,500 586,800 6,045,000 5,886,000 4,781,200
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