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THE MONTHLY REVIEW Qf Agricultural, Industrial, Trade and Financial Conditions in the Tenth Federal Reserve District FEDERAL RESERVE BA K OF KANSAS CI TY M. L. McCLURE, Chairman and Federal Reserve Agent :\. M. McA.DAMS, Assistant Federal Reserve Agent and Secretary KA 1 sAs CnY, Mo.~ DEAL harvest weather conditions prevailed throughout the Tenth District the last half of June and the forepart of July, and by the third week of July the harvest of wheat, oats, rye, and barley was practically completed. A record crop of winter wheat was harvested, but prices were the lowest in history and the tendency is for producers to hold their wheat, when financially able to do so. Timely and well distributed showers in mid-July temporarily relieved threatened drought conditions and materially increased crop prospects in the eastern part of the District, but the western half continued in need of rain, with ranges, pastures, and growing crops suffering from lack of moisture. ' '"' Department store trade in June was smaller than in May by aboµt the normal seasonal amount and 4.8 percent smaller than in June, 1930. Wholesale trade, contrary to the usual seasonal trend, was slightly larger in June than in May, but was 15.1 percent smaller than in June last year. Collections in June were smaller than in either the preceding month or the corresponding month last year. Flour milling, coal mining, and cement production declined ~easonally in June as compared to the preceding month. Zinc ore production declined in June, but slightly more lead ore was mined. Crude oil production was less in June than in May, and a· 15 cents per barrel decline in crude oil prices the forepart of July, carrying prices to the lowest level of record, led to a further reduction of petroleum production. Flour milling and production in all mineral lines during June and the first six months this year were substantially smaller than in the corresponding month and six months of 1930. June · building operations were at the lowest level for that month in the twelve years of record. I · Banking and Credit Consolidated statements of fifty-six reporting member banks in the Tenth District, as of July 15 compared to June 17, disclose a slight reduction in loans and discounts and time deposits and a slight increase in investments during the four weeks. Net demand deposits showed no change. Compared to holdings as of July 16, 1930 loans and discounts decreased 17.4 percent, those secured by stocks and bonds decreasing 28 percent and "All Other" loans decreasing 12. 5 percent. There was an increase during the year of 28 percent in investments in United States government securities with total investments increasing 23.4 percent. et demand deposits decreased 10.5 percent but time deposits increased 5.7 percent in the fifty-two weeks. RESERVE BA K OPERATION S: Member banks reduced their borrowings at the Federal Reserve Bank of Kansas City and branches 20.4 percent in the four weeks between June 17 and July 15, and on the latter date rediscounts were 6.7 AuGUST 1, No. 8 1931 BUSINESS IN THE TE TH FEDERAL RESERVE DISTRICT Percentages of Increase, or Decrease (-), for June 1931 over May 1931 and June 1930 and for the first six months of 1931 over the like period in 1930. June 1931 6 Months 1931 Compared to Compared to Banking May 1931 June 1930 6 Months 1930 Payments by check, 29 cities_................ 2.1 -26.9 -21.6 Federal Reserve Bank clearings·-··········· 7.4 -14.2 -17.0 ,- Business failures, number .... _ _ _ _ -26.5 -36.2 - 4.2 Business failures, liabilities...................... -45.1 59.0 2.3 , ·Loans, 56 member banks.--····················· - 1.5 -17.4 .::. Investments, 56 member banks.............. I.I 23.4 _ Net demand deposits, 56 member banks o -10.5 Time deposits, 56 member banks·---····· - 0.2 5.7 Savings deposits, 49 selected banks·-····· - 0.3 _ 7.9 S~vi~gs accounts, _48 selected banks...... - 0.3 4.8 Life insurance, wntten·--·······················1.8 - 8.3 Di.stribution Wholesalers' sales, 5 lines combined...... 2.4 Retailers' sales, 37 department stores.... -11.3 Lumber sales, 172 retail yards.. .............. 0.3 Construction Building contracts awarded, value.---··· 17.3 Building permits in 18 cities, value........ - 6.9 Grain receipts, 5 markets -16.1 16.3 WheaL ............ - - - - - - 76-4 Corn ..... _ _ _ _ _ _ _ _ _ __ 10.5 -27.8 - 1 7.7 Oat.,___ _ _ _ _ _ _ _ _ __ -32.1 -46.6 l Rye ........... - - - - - - - - - Barley_ _ _ _ _ _ _ _ _ __ Ka fir _ _ _ _ _ _ _ _ _ _ _ __ Livestock receipts, 6 markets Cattle ........ - - - - - - - - - Calves._ ...................................................... . Hogs .......... - - - - - - - - Sheep ........ _ _ _ _ _ __ Horses and mules ..................................... . Production Flour·-························································· Crude petroleum............ - - - - - · · Soft coal...................................................... Zinc ore (shipped) Tristate District...... Lead ore (shipped) Tristate District...... Cement........................................................ Meat packing, 6 cities Cattle .......................................................... Calves ......................................................... . Hogs ............................................................ Sheep ......................................................... . 90.0 --'70.9 -56.8 --'72,0 5-1 2.6 31.7 14.1 -68.6 -62.2 - 3.3 - 6.2 -53.I -48.6 - 4.9 -14.2 8.8 2.2.6 -28.3 4.6 -37.6 - 9.3 8.3 -16.6 - 8.7 1.2 - 3.8 -18.9 -12.6 -20.0 -65.6 --'76.0 - 8.4 - 9.9 - 9.0 -20.7 -46.1 -46.3 -22.8 0,1 30.0 - 3.8 - 6.7 -4.3 18.7 -13.6 9.6 - -IO.I 3.4 7.2 4.9 - 7.5 percent less than on the corresponding date last year. There was a further increase in this bank's holdings of United States securities, the total of July 15 being 15.2 percent greater than on June 17 and 35.4 percent greater than on July 16, 1930. Total bills and securities held by this bank increased 1.5 percent in four weeks and 18.9 percent in~fifty-two~weeks. This Copy Released For Publication In Afternoon Newspaper July 29. 2 THE MoNmLY REVIEW Principal resource and liability items of the fifty-six reporting banks and of the Federal Reserve Bank of Kansas City, as of three dates, follow: REPORTING MEMBER BANKS July 15, 1931 June 17, 1931 Loans and investments-total.. $635,738,000 $638,144,000 Loans and discounts-total__ __. 363,741,000 369,15:2,000 Secured by stocks and bonds 100,901,000 101,858,000 All other loans and discounts :26:2,840,000 :267 ,:294,000 lnvestments-tota.___ _ __ :2 7 I ,997 ,ooo z6 8,99:2 ,ooo U. S. securities ........................ 119,:2:25,000 117,879,000 Other bonds, stks. and sec ...-. 15:2,77:2,000 151,u3,ooo Reserve with F. R. banlc ........ . 53,:218,000 53,057,000 Net demand deposits _ _ __ 446,513,000 446,496,000 Time deposits ...... _ _ _ __ :203,835,000 :204,333,000 Government deposits.................. 3,056,000 4,055,000 July 16, 1930 $66o,810,ooo 440,357,000 140,13:2,000 300,:2:25,000 :2:io,453,ooo 93,161,000 1:27,29:2,000 57,701,000 499,II4,ooo 19:2,835,000 1,694,000 FEDERAL RESERVE BANK July 15, 1931 June 17, 1931 July 16, 1930 Gold reserve.,_______ $ 90,91:2,53:2 $ 91,409,496 Jn:2,749,777 Reserves other than gold. ___ ..... 7,665,683 6,809,144 5,991,6:24 Total reserves .... _ _ _ _ _ 98,578,:215 98,:218,640 II8,741,401 Bills discounte.~ - - - - 9,413,169 II,83:2,643 10,085,433 Bills purchased .... _ _ _ _ 4,061,35:2 6,4:21,359 5,901,705 U.S. securities............................ 38,9:21,500 33,779,500 :28,736,000 Total bills and securities............ 53,176,0:21 52,383,50:2 44,7:23,138 Total resources .... - - - - 187,058,930 185,o61,550 :210,9:24,858 F. R. notes in circulation.......... 6:2,97:2,390 6:2,906,190 69,578,630 Total deposits______ 85,031,5:20 83,139,:267 91,295,414 The discount rate of the Federal Reserve Bank of Kansas City, on all classes of paper and all maturities, remained unchanged at 3 percent. SAVI GS: The July 1 reports of a selected list of banks in this District reflect a decrease of 0.3 percent in both the number of savings accounts and the amount of savings deposits as compared to June 1. This is the first time this year that a reduction in either of these items has been reported. Compared to July 1, 1930, forty-nine banks reported an increase of 7.9 percent in savings deposits and forty-eight banks an increase of 4.8 percent in the number of accounts. Savings deposits and accounts for the three dates are here shown: July 1, 1931 _ _ _ _ _ _ _ __ June 1, 1931 __________ July 1, 1930_ _ _ _ __ Savings Accounts 48 Banks 426,1:24 427,555 406,770 Savings Deposits 49 Banks $133,938,577 134,35 1,9 15 1:24,109,:205 Business Failures There were fewer commercial failures in this District in June than in any month since October, 1928, and the June and the first six months' totals this year were smaller than those for the corresponding month and six months of 1930. The amount of liabilities involved in June and first half-year failures this year was, however, larger than last year. Commercial failures in the Tenth District and the United States, as reported by R. G. Dun and Company, are shown in the following: UNITED STATES TE NTH DISTRICT June 1931 _ _ __ May 1931·--····························· June 1930..... -........................... Six Months, 1931.. .................. Six Months, 1930.................... Tumber Liabilities 83 $ :2,50:2,400 11 3 4,56 1,233 130 1,573,613 727 13,608,319 7 59 13,306,863 umber Liabilities 1,993 $ 51,655,648 :2,:248 53,37 1,212 2,026 63,130,762 15, 107 370,497,369 13,77 1 337,o89,o43 Payments By ..,,heck Reporting banks in twenty-nine selected cities in the Tenth District reported an increase in payments by check of 2.1 percent during the four weeks' period ended J uly 1 over the preceding four weeks' period ended J une 3, but the total amount was 26.9 percent less than was shown for the corresponding period last year. Cumulative debits to individual accounts during the first twenty-six weeks of 1931 were 21.6 percent less than in 1930, and the total was the smallest for the initial half of any year since 1924. PAYMENTS BY CHECK (In thousands of dollars-ooo omitted) Albuquerque, N. M,.--··· Atchison, Kans,.---········· Bartlesville, Okla ..-......... Casper, Wyo ..---············· Cheyenne, Wyo ............... Colorado Springs, Colo ... Denver, Colo ............... _.. Enid, Okla ....................... Fremont, Nebr.·-············· Grand Junction, Colo ..... Guthrie, Oki...__ __ Hutchinson, Kans .......... . Independence, Kans·--··· Joplin, Mo ................... _.. Kansas City, Kans ........ . Kansas City, Mo.·-········· Lawrence, Kans •. _........... Lincoln, Nebr _ _ __ Muskogee, Okla .............. Oklahoma City, Okla ..... Okmulgee, Okla ............... Omaha, Nebr. _ _ __ Pittsburg, Kans ............... Pueblo, Colo _ _ __ Salina, Kans _ _ __ St. Joseph, Mo·--··········· Topeka, Kans _ _ __ Tulsa, Oki _ _ _ __ Wichita, Kans ................ . FouR WEEKS ENDED TWENTY-SIX W EEll:.S ENDED July 1, 1931 July 2, 1930 July 1, 1931 July 2, 1930 $ 9,533 $ II,895 f, 67,521 f 76,357 4,013 5,698 26,672 37,286 15,466 :28,0:24 113,:255 146,979 5,453 7,575 34,376 42,905 5,471 5,884 37,:275 38,730 13,7:25 16,686 81,985 93,271 128,438 159,776 880,444 1,053,166 II,393 21,481 64,561 92,II6 :2,998 3,82:2 :20,542 25,570 :2,48:2 :2,816 15,872 18,699 1,68:2 3,013 13,351 20,348 II,013 21,196 78,458 109,588 5,66:2 n,5:26 42,461 70,887 7,141 10,594 48,313 69,287 17,703 18,376 97,155 120,407 313,105 398,089 :2,012,331 :2,498,323 4,023 4,83:2 :26,954 30,232 :28,:233 34,68:2 179,897 210,717 7,435 10,084 5o,019 65,453 8:2,3:20 1:23,047 575,800 775,553 3,087 5,870 :2:2,u:2 38,542 163,003 199,941 1,077,550 1,303,728 4,349 4,917 :27,257 32,790 15,623 16,741 96,870 I16,459 8,173 II,734 59,965 7o,365 30,328 4:2,1:25 :228,669 298,020 16,895 18,147 II4,592 126,851 73,702 157,056 587,359 9:21,o74 41,313 58,479 :291,46o 387,228 Total :29 cities____ $ 1,033,76:2 $ 1,414,106 f, 6,973,076 $ 8,890,931 Total United States........ 43,575,593 64,374,oII 286,794,856 393,205,476 Federal Reserve Bank Clearings During the first six months of 1931 the dollar amount of check collections through the Federal Reserve Bank of Kansas City and branches declined 17.0 percent, although only 5.3 percent fewer items were handled than in the first six months of 1930. June clearings exceeded those in May in both the number of items handled and the aggregate amount, but were less for both items than one year ago. The figures follow: AMOUNT ITEMS June.................. May.................. Six months·-····· 1931 5,754, 17° 5,4:23,176 33,037,891 1930 5,831,10:2 5,854,1:25 34,900,684 1931 .,, 736,5:2:2,ooo 685,779,000 4,360,6o3,ooo 1930 $ 858,712,000 87:2,o6o,ooo 5,2 54,7 17,000 Life Insurance Reports of the Life Insurance Research Bureau indicate June and half-year sales of new paid-for ordinary life insurance were smaller in 1931 than in 1930 in every state in the Tenth District. The June total for the seven states was 8.3 percent smaller anci the half-year total 15.9 percent smaller this year than in the corresponding period last year. Trade RETAIL: Department store trade in this District in June showed about the customary seasonal decrease from May, and the money volume of sales was 4.8 percent smaller than in June, 1930. Twelve of the thirty-seven stores reported their June sales this year as exceeding those of last June. Only three of the thirty-seven reporting stores had a larger dollar volume of business in the first six months of the current year than in the corresponding six months of the preceding year and the THE MONTHLY REVIEW Stores Reporting Kansas City........ 4 Denver.................. 5 Oklahoma City.... 3 Omaha .................. 3 Lincoln·-··············· 2 Topeka·-··············· 3 Tulsa .................... 4 Wichita ................ 3 Other Cities·--····· 10 RETAIL TRADE AT 37 DEPARTMENT STORES IN THE TENTH FEDERAL RESERVE DISTRICT SALES STOCKS (RETAIL) ACCOUNTS RECEIVABLE COLLECTIONS June 1931 6 Months 1931 June 30, 1931 STOCK TURNOVER June 30. 1931 June 1931 compared to compared to compared to June 6 Months compared to compared to June 1930 6 Months 1930 May 31,1931 June 30,1930 1931 1930 1931 1930 May 31,1931 June 30,1930 May 1931 June 1930 - 0.4 - 4.8 - 8.5 -13.7 .23 ,20 1.36 1.25 - 4.7 3.2 7.3 - 3.2 - 3.5 - 4.8 - 4.8 - 9.3 .24 .23 1.36 1.27 - 2.7 2.1 0.2 - 0.5 -20.6 -12.8 - 1.6 - 4.0 .22 .26 1.51 1.66 0.1 - 6.3 -14.1 -17.9 2.0 Even 2.2 - 5.6 0.5 5.6 O.I .21 -14.4 .25 I.I 3.6 - 3.7 5.4 - 3.1 5.3 1.57 1.33 - 5.1 - 4.1 - 3.5 - 7.5 - 0.5 3.4 -10.6 -20.1 - 8.6 -11.4 .22 1.74 1.55 - 4.1 - 8.2 .24 - 7.5 - 1 3.9 -16.0 - 6.6 .21 - 7.0 - 1.9 .20 1.42 1.19 -10.0 -16.7 0.3 -10.5 -11.8 -13.2 .16 -9.0 .16 5.2 - 2.0 - 5.0 - 9.0 -11.3 ·99 I.00 TotaL .. -............... 37 - 4.8 - 6.9 - 4.8 -11.8 .24 NOTE: Percentage of collections in June on accounts May 31, all stores reporting 37.0. combined sales of the thirty-seven stores reflected a decrease for the period of 6.9 percent. Sales at leading apparel and shoe stores averaged 11.7 percent less in June this year than in June, 1930 and retail furniture houses reported their June sales as 9.3 percent smaller than a year ago. Department store stocks were reduced 4.3 percent between May 31 and June 30 and, on the latter date, were 11.8 percent smaller than one year earlier. Retail apparel and retail furniture stores reported their June 30, 1931 stocks as 4.4 and 14.0 percent, respectively, smaller than on June 30, 1930. WHOLESALE: The combined sales of five representative wholesale lines (dry goods, groceries, hardware, furniture, and drugs) were 2.4 percent larger in June than in May but 15.1 percent smaller than in June, 1930. Sales of groceries, hardware, and drugs showed an increase for the month but were less than a year ago. Sales of dry goods and furniture were smaller in June than in either the preceding man th or the corresponding month last year. All five lines reported smaller stocks on hand June 30 than on May 31 and wholesalers of groceries were the only ones to report larger stocks this year than last. COLLECTIO S: Department stores reported their collections during June as 37 percent of the amounts outstanding on the last day of the previous month, compared with 37.6 percent in May and 39 percent in June, 1930. All wholesale lines reported their collections in June as smaller than a year ago. Wholesalers of dry goods, groceries, and furniture, however, reported their June collections exceeded their May collections. Grain Marketing Efforts to dispose of old crop wheat before new wheat would begin moving to market in any considerable quantity, and before old wheat prices settled to the new crop basis, was reflected in the unusually large receipts of wheat at the five principal grain markets in this District during June. The total for the five markets was the largest for any June on twelve years' records and the heavy marketings in the preceding months combined to make the total for the first half of the year the largest for that period of record. Dry Good Groceries.... Hardware Furnitur Drugs 3 Reporting Stores 6 5 9 6 6 .22 1.42 1.34 - 2.0 Collections same month last year 39.0. 0.5 -6.3 During the wheat year ended June 30, 1931, receipts of wheat at the five markets were 237,864,120 bushels compared to 223,581,280 bushels in the previous wheat year ended June 30, 1930. With harvest well under way and yields exceeding earlier expectations, new wheat moved to market in heavy volume the first two weeks in July. In contrast to unusually heavy marketings of wheat, the market was featured by unusually light marketings of other grains during June and the first six months of the year. June and half year arrivals of oats at the five markets were the smallest on twelve years' records. June arrivals of corn were the smallest for that man th since 1924 and the half year total was the smallest for any corresponding period since 1927. June and six months' receipts of barley were the smallest since 1928, and except for June, 1930, receipts of kafir were the smallest for any June since 1923 and the half year's total was the smallest since that year. Hutchinson. Kansas City Omaha ........ St. Joseph._. Wichita. ___ . June 1931._. May 1931._. June 1930._. 6 Mos. 1931 6 Mos. 1930 Corn Oats Wheat Rye Barley Kafir Bushels Bushels Bushels Bushels Bushels Bushels 81,250 1,500 3,078,000 5,000 84,500 166,000 193,500 8,129,600 2,116,500 32,000 7,5 00 110,000 2,800 12,800 968,800 971,200 I 12,000 1,500 14,000 243,000 504,000 1,500 2,820,000 62,400 1,500 6,500 6,500 l 5,241,800 18,169,800 13,108,300 87, 139,45° 49,393,220 391,000 3,73 2,950 3,377,45° 575,5 00 5,166,950 1,345,000 35,097,5 00 4,840,000 42,641,300 9,063,000 l 1,800 286,000 70,300 186,000 37,600 150,500 272,000 27,300 251,300 179,300 664,950 1,517,400 168,900 1,416,500 2,954,200 After Federal stabilization was withdrawn early in June and before the appearance of new wheat on the market, wheat prices increased about three cents above the May top to 79 cents per bushel at KanRas City, but quickly receded and closed the month at approximately 50 cents per bushel. Heavy marketings in July and other factors continued to affect the price adversely and on July 15 cash wheat sold at 50.¼ and 41 % cents per bushel on the Chicago and Kansas City markets, respectively, a new all-time low price record for each. Prices paid producers at country shipping points in Kansas the second week in July ranged from 25 to 30 cents per bushel. WHOLESALE TRADE IN THE TENTH FEDERAL RESERVE DISTRICT COLLECTIONS OuTSTANDlNGS SALES June 1931 compared to June 30, 1931 compared to June 1931 compared to May 1931 June 1930 May 31, 1931 June 30, 1930 June 1930 May 1931 o.8 -4.0 -4.4 - 6.9 -14.2 - 7.0 2.2 2.2 -10.5 I.8 8.o - 5.5 -28.4 -20.l -5-2 8.8 - 9.3 3.9 -28.0 -37.8 - 9.6 5.4 - 9.6 -31.5 -12.6 2.8 -14.l 0.3 1.7 - 15.7 STOCKS June 30, 1931 compared to May 31, 1931 June 30, l 930 - 2.2 - 7.6 o.8 - 5.0 -12.3 - 3.8 -11.7 -39.5 -18.6 -2.4 THg MONTHLY REVIEW 4 Flour./Production Flour production~in: this · District in June was, as usual, the smallest for any month of the old wheat year, and the total for June this year was the smallest for any month since May, 1926, or for any June since 1924. The decrease from May was 9.3 percent, about the usual seasonal amount, and~as compared to June, 1930, the decrease was 18.9 percent. Mills operated at 51.9 percent of capacity during June which was the lowest rate of activity reported for any month since May, 1925, and for any June since 1923, comparing with 57.3 percent for May and 67.0 percent for June, 1930. During the 1930-1931 wheat year ended June 30, southwestern mills produced 24,587,451 barrels of flour compared to 26,120,155 barrels produced in the preceding wheat year. Production for June and the wheat year, as compiledJrom weekly reports to the Northwestern Miller, is shown in the following table: WHEAT YEAR MONTH OF JUNE Atchison'---- Kansas City_ _ __ Omaha .... _ _ _ _ __ Salina.. _______ St. Josep.~---Wichit _ _ _ _ __ Outsid ________ 1931 Barrels 108,604 577,262 79,538 162,010 15,459 103,380 602,931 1930 Barrels 124,068 623,007 103,061 l 53,100 91,439 135,096 803,856 1930-31 Barrels 1,545,399 7,642,862 1,189,309 2,197,037 4 10,393 1,589,767 10,012,684 192g-30 Barrels 1,5n,319 7,849,416 1,228,364 1,931,015 1,451,320 1,849,797 10,298,924 Total_·············--- 1,649,184 2,033,627 24,587,451 26,120,155 The daily decline in wheat prices the last week in June and the first two weeks in July was reflected in an average price decline of approximately 85 cents per barrel in flour quotations. Lower prices resulted in an improved export inquiry, but domestic demand continued on the hand-to-mouth basis, orders being for small lots calling for immediate to 90-day shipment. The second week in July, however, witnessed an improved demand for flour in the southwest and bookings during that week were about normal for the period, several large orders being placed and shipping directions extended. The millfeed market continued weak during June and the forepart of July. Crops The July forecast of the United States Department of Agriculture, based on the July 1 acreage and condition of crops, indicated an increased acreage and production of winter wheat, corn, oats, and flaxseed and a decreased acreage and production of spring wheat, tame hay, wild hay, sugar beets and dry, edible beans in the seven states of this District in 1931 as compared to 1930. The acreage of rye, barley, alfalfa hay, and white potatoes was larger but the July 1 condition indicated the crop would be short of last year. The acreage and yield of timothy and clover meadows was estimated as less than the 1930 pr0duction. An increase in the production of apples, peaches, pears, and grapes was also indicated. The cotton acreage was decreased but no July 1 estimate of production was made. The 1931 United States production, based on the July i acreage and condition, of winter wheat, corn, barley, white potatoes, sugar beets, beans, apples, peaches, and pears_ was forecast as above the five-year (1925-1929) average, whereas, the production of spring wheat, oats, rye, all varieties of hay, sweet potatoes, sorghum for syrup, flaxseed, and grapes was estimated as below the average. Hot dry weather the last two weeks in June and the forepart of July, although favorable for harvest of wheat, oats, rye, and barley, was injurious to growing crops, especially corn, cotton potatoes, sugar beets, alfalfa, and pastures. Scattered showers the second and third weeks of July gave relief to some localities but rains are needed generally as the average rainfall is below normal and there is a deficiency of subsoil moisture. WINTER WHEAT: Harvest of winter wheat in· the Tenth District was practically completed by July 21 under generally · ideal harvest weather conditions. Hot weather the last two weeks in June did some damage to the crop in the western part of the District but the crop was too far advanced to be affected to any considerable extent and threshing returns exceeded · earlier estimates of production. ·The moisture content of the wheat is low but the protein content is not up to that of 1930. According to July estimates of the Kansas State Board of Agriculture, Kansas, the principal winter wheat producing state of the nation, will have a crop of 200,896,000 bushels of winter wheat, the largest of record for that state, with yields averaging 16 bushels per acre compared to the 1930 average of 13.5 bushels per acre. Every state in the District reported a crop above the five ..year average, but Colorado, Wyoming, and Nebraska reported this year's crop as smaller than last year's. Tenth District production is estimated at 350,636,000 bushels compared to 300,633,000 bushels produced in ·1930. · Railroad and elevator facilities are adequate for the orderly marketing of the crop, but producers, due to the unprecedented low prices, are disposing of only such quantities as their immediate financial needs demand. Th e July I condition of all spring wheat in the United States prom ises a crop of only 156,402,000 bushels, the second smallest in the past twenty years. · _ The condition of the Canadian spring wheat crop on June 30 was given as 56 percent, the lowest condition reported since 1908, and compares with a condition of 92 percent at the corresponding time last year. ESTIMATED PRODUCTIO Colorado ........ Kansas Missouri Nebrask New Mexico_ Oklahoma........ Wyoming Seven States_... OF LEADING FARM CROPS IN SEVEN STATES AND THE TENTH FEDERAL RESERVE DISTRICT From Reports of the U.S. Department of Agriculture and Stale Boards of Agriculture (Figures are in thousands of units, ooo omitted.) Winter Wheat Spring Wheat Corn Oats Barley Potatoes .Tame Hay Bushels Bushels Bushels Bushels Bushels Bushels Tons July Est. Yield July Est. Yield July Est. Yield July Est. Yield July Est. Yield July Est. Yield . July Est. Yield 1931 1930 1931 1930 1931 1930 1931 1930 1931 1930:: 1930 1931 1930 1931 14,975 4,868 30,160 5,280 19,300 3,072 6,700 11,067 14,612 13,250 15,400 2,736 4 1, 234 2,765 128 200,896 166,185 82,908 46,168 2,126 44o 129,344 4o,34l 10,540 10,580 2;252 4, 2 52 4,955 168 177,799 J04 48,222 6,206 23,870 17,052 44,660 625 4,480 2,849 73,935 3,554 45 2 62,868 3,008 262,496 247,106 1,540 83,720 18,879 24,086 10,000 3,002 71,974 9,900 55,5°5 3,7°9 253 4,608 1,501 420 3,612 216 5,II2 988 321 43 2 356 735 35° 35° 69,632 36,708 47,104 29,232 1,540 36,436 4,087 636 56,538 3,o45 s:20 3,997 2,860 2,355 2,052 1,320 2,548 4,086 3,888 3,626 2,625 2,235 3,696 1,144 3,000 1,033 TENTH D1STRICT.---··-·-··- 371,538 350,636 United States...·-·····-········ 712,611 314,955 300,633 612,268 6,596 6,345 156,402 488,927 213,490 209,276 46,764 55,112 39,044 43,808 519,998 427,107 172,251 171,858 46, 173 54,415 35,006 38,398 251,162 2,967,953 2,093,552 1,306,267 1,358,052 266,618 334,971 396,45 1 343,236 II,452 II,141 665,535 13,569 lo,453 79, 107 lJ,43,t. 10,914_·. 77,~5° . 5 THE MONTHLY REVIEW COR : The 1931 acreage of corn is larger than in 1930 in all Tenth. District states except Kansas and Oklahoma, . the former reporting a reduction of 276,000 acres and the latter showing no change. The July 1 condition promised a larger total production than was _realized in 1930 iQ all states except Colorado, . which produced an exceptionally good crop last year. Indications are that this year's production will exceed the fiveyear _aver.age, all states ~hawing an estimated increase except Oklahoma, where corn has suffered most from heat and lack of moisture. Missouri reports the greatest increase in prospects, as compared to last year's final results, of any of the seven states. Corn is in an excellent state of cultivation and much of it is laid by, with early planted corn in the silk and tassel stage. Nebraska, Kansas, and Missouri report corn prospects excellent but the reserve supply of subsoil moisture is below normal and frequent and ample rainfall the next six weeks will be needed for satisfactory maturity. COTTON: The cotton acreage of the United States and the states of Missouri and ew Mexico has been reduced 10 percent and that of Oklahoma 17 percent. The area in cultivation in the cotton belt of the United States J uly 1, 1931 was 41,491,000 acres compared with 46,078,000 acres in cultivation a year ago and is the smallest acreage since 1923. Cotton is in bloom in Oklahoma and fields are reported clean. Plants suffered from drought in June and some boll weevil infestation is reported. The Oklahoma crop was reported in fair to good condition the second week in July but rains were needed. HAY: Tame hay production in this District is estimated as under the five-year average for all states except Colorado. Every state in the District but Colorado reported an increased acreage of alfalfa and a decreased acreage of clover and timothy as compared to 1930. Alfalfa is being cut for the second time and yields are light, due to heat, dry weather, and insect injury. POTATOES: Digging of potatoes has begun in the Orrick region of Missouri and the Kaw Valley district of Kansas, and results of early diggings indicate per acre yields will run 40 ·percent below normal. The hot weather checked growth, reducing July 1 estimates of the Kaw Valley crop -to 1,518,000 bushels from 2,347,000 bushels as of June 1, compared to 2,367,00 bushelg July 1, 1930. Prices ate 25 cents per hundred pounds below last year. A larger acreage and a larger prospective crop of sweet potatoes were forec ast for all states than in 1930, but indications were . that the total production would be under the ten-year average. FRUIT: Better fruit prospects in all states for all varieties, except cherries in Colorado and grapes and pears in 1 ebraska, . are forecast. Taking the District as a whole, the July 1 condition of apples, pears, and grapes was below, and of peaches above, the ten-year (1920-1929) average. In Missouri and Kansas th_e July 1 condition of all varieties of fruit was above the ten-year average and in Oklahoma it was below. Apricot harvest has begun in the Colorado River Valley and early varieties of apples and peaches are moving to market from the Ozark district in Missouri. ' OTHER CROPS: Less oats and rye and approximately the same amount of barley will be produced this year as last .. Oats were damaged somewhat by heat and rust just before harvest. Rye did poorly in Nebraska. The sugar beet area of western Kansas and ebraska and Colorado is smaller this year than last and the July 1 condition in Kansas and Nebraska was below the ten-year average, but in Colorado the condition was four points better. The Kansas broom corn acreage has been reduced 60 percent. A decreased acreage and production of dry beans is forecast for the District. Livestock Marketings of livestock at the six principal Tenth District markets during the first six months of 1931 were lighter than usual for all classes except sheep, which were heavier than for any like period in the thirteen years records have been compiled. Fewer cattle, with the exception of 1929, and fewer hogs, with the exception of 1926, were received at these markets during the period than in any corresponding six months of record. Receipts of calve·s and horses and mules were the smallest since 1922. June receipts of all classes of livestock except hogs, which declined ·8.8 percent, were larger than in -June, 1930. June receipts of cattle and calves were the largest for that month since 1927, and of sheep the largest for any J une of record. Marketings of hogs, including those shipped direct to packers' yards, although the largest since February, were the smallest for any June of record. Reports from sixty-five public stockyards in the United States indicate th'.!t 7.4 percent fewer cattle, 15.8 percent fewer hogs, 1.3 percent more calves, and 34.4 percent more sheep were marketed in June this year than the five year average for that month. Four Tenth District markets reported fewer cattle shipped to the country for stock and feeding purposes in June than in any month in the eleven years records have been kept, and the six months' total was also the smallest of record. Countryward movement of c~lves during June was the smallest for that month since 1926 and the outgo of sheep the largest since 1928. Fewer hogs were shipped to the country than in any June since 1921, with the exception of June last year, and the six months' total was the smallest of record. In the United States the June countryward movement of cattle, calves, and hogs was 33.1, '1-7.6, ·and 33.7 percent, respectively, under the five-year June average , but the outgo of sheep was 18.9·percent ·g reater. Livestock on ranges were reported generally in as good condition July 1 as one month earlier, although range conditions were the lowest for that date in nine years and lower in all Tenth District states except Kansas. Ranges and pastures were reported dry and suffering from lack of moisture, especially in the mountain areas. The hay crop in the several states is reported short or average, with a shottage of irrigation water reported from Wyoming. All states report an excellent calf crop but cattle trading is dull. · Colorado and Wyoming report a good lamb crop with lambing about completed. Shearing is about over, with the average fleece weighi ng above normal. The \Vyoming wool market was active in June with prices ranging from .12 to 16 cents per pound or 6 to 8 cents under last year, and these low prices have resulted in a large amount of wool being consigned. PRICES: Following ·an advance of $1.50 to 1.75 for hogs and $1 to 1.50 for cattle the first two weeks in June, pri_ces worked lower the closihg weeks of the month. Fat hogs sellmg up to $7.45 at Kansas City on June 18 closed the month at 6.90 as compared to $10.20 one year earlier. Yearling steers topped the market at 8.85 June 16, ·but closed the month only 50 cents above the May close with other classes of cattle mostly steady to 50 cents lower than in May. The J une, 1930 top for steers was 13.50. Under record breaking supplies containing an unusually large proportion of ewes, wethers and low grade lambs, sheep values continued tt) decline during June, lan:ibs closing th~ month $2.50 lower than in May and fat ewes sellmg at the lowest levels on recor.d. On June 1, western lambs sold up to $9.85 as compared to ·the June, 1930 top of $12.25 but closed the month at $7.35. · 6 THE MoHTRLY R1vtsw The Bureau of Agricultural Economics reported the average price of stocker and feeder cattle the first week in July was $5.08 per hu ndred pounds at Kansas City, the lowest average ever reported since this information was first compiled in 1925. The average price for the week was 81 cents lower than in the preceding week, and $2.31 lower than in the corresponding week last year. In the week ended August I 5 last year, when drought conditions were the worst, the average price was $5 .99. The demand for heavy weight steers the forepart of July was sluggish, but lightweights and yearlings moved at steady to strong prices. On July 17 hogs of 190 to 210 pounds average topped the market at $7.45, equalling the top of June 18. The July 17 top on native lambs was $7. 50. JUNE PIG SURVEY: An increase of 18 percent in the fall pig crop in the Uni ted States and an increase of 21 percent in the corn belt states is indicated by the June pig survey of the United States Department of Agriculture. The report shows an intended increase in the number of sows bred or to be br~d for farrowing in the fall of 1931 of 37 percent for the United States, and 35 percent for the North Central states, but the difference in actual fall farrowings and June breeding intentions for the past four years has amounted to a decrease of I 9 points for the United States and 14 points for the corn belt. This is the second largest increase in breeding intentions shown in nine years. K ansas farmers intended to breed 59 percent more sows than in 1930, the largest increase in intentions being shown for the principal wheat producing sections. An increase of 2..5 percent in the nation 's spring pig crop, due primarily to an increase of 2.5 percent in the number of pigs saved this spring over last, is also disclosed by the report. Meat Packin g As measured by the number of meat animals purchased by packers at six public stockyards in this District, including hogs shipped direct to packers' yards, the June slaughter of sheep was the largest and of hogs the smallest for any June on records beginning in 1919. There was little change from the June totals of other_years in the number of cattle purchased for slaughter although more calves were killed during the month than in any June since 1927. The first half-year slaughter of sheep was, with the exception of 1930, the largest on thirteen years' records. Fewer cattle were killed during the period than in any like period of record and the slaughter of calves was the smallest since 1922 and of hogs the smallest since 192 7. From January to June, inclusive, there were 1.0 percent more cattle, o.6 percent more calves, 7.2 percent more sheep, and 1.0 percent fewer hogs slaughtered under Federal meat inspection in the United States than in the same period last year. Kansas City ...................... Omaha ........ St. Joseph .......................... Denver............................_.. Oklahoma CitY·--- ··········· Wirhi ta .............................. Cattle 103,271 137,5 19 3 1,37 2 24,722 13,158 12,398 Cold Storage Holdings The July I cold storage holdings of all meats except pork, and of butter, cheese, and eggs were below holdings as of July 1, 1930. Storage stocks of beef, pork, poultry, lard, eggs in cases, and cheese were below the July I five-year average, but holdings of mutton, miscellaneous meats, frozen eggs, and butter were above the five-year average. During June there was a seasonal in-storage movement of lamb, lard, eggs, butter, and ch~se. The July I cold storage holdings in the United States, as reported by the Bureau of Agricultural Economics: *July 1 1931 Beef, lbs_ _ _ _ _ _ _ _ 45,s:22 Pork, lbs ....... - - - - 776,140 Lamb and mutton, lbs............... 2,722 Poultry, lbs................................... 32,735 **Turkeys, lbs................................. 3,085 Miscellaneous meats, lbs,.--······· 74,969 Lard, lbs....................................... II 5,873 Eggs, cases .... _ _ _ _ 9,495 Eggs, frozen (case equivalent)... 3,240 Butter, creamery, lbs.·--············· 89,286 Cheese, all v arieties, lbs............. 72,327 *Subject to revision. **Included in Poultry. By Presidential proclamation the tariff rate on dried eggs has been increased from 18 cents to 27 cents per pound. The present tariff rate on frozen eggs is I I cents per pound, shell eggs 10 cents per dozen, live poultry 8 cents per pound, and dressed poultry 10 cents per pound. Lum ber Contrary to the usual season al trend there was an increase of 0.3 percent in sales of lumber in board feet at 172 retail yards of this District in June as compared to May. June sales in the years 1930, 1929, 1928, and 1927 were 19.9, 18.8, 16.1, and 6.2 percent, respectively, less than in May. June sales were 9.8 percent less than in June, 1930, and showed a smaller decline from _the total for the corresponding month last year than any of the preceding months this year, except January. Total sales in board feet for the six months of the current year were 27.2 percent less than in the corresponding six months of 1930 and the dollar volume of all materials sold was 34.7 percent smaller. June business at the reporting yards is given in the following table in percentages of increase or decrease: Sales of lumber, board feet .. __ _ _ _ _ _ _ Sales of all materials, dollars ........... - - - Stocks of lumber, board feet.-................................... Outstandings, end of mont,..________ Collections during month .....................- - - - 36,079 45,5°3 40,221 385,524 448,404 June 1931 compared to May 1931 June 1930 0.3 - 9.8 -12.2 ~7.0 - 2.8 -12.7 1.9 ~3-5 - 8.9 - 42.9 Reports from 648 identical mills to the National Lumber Manufacturers Association indicate that lumber production in the United States during the twenty-six weeks' period ended JUNE MOVEMENTS OF LIVESTOCK IN THE TENTH DISTRICT RECEIPTS STOCKERS AND FEEDERS Hogs Sheep Cattle Calves Calves Hogs Sheep 162,132 20,889 •240,435 18,356 3,231 2,099 11,173 1 486 5,321 190,378 2,043 37,008 3 9,391 4,935 112,212 131,998 3,213 10,7o6 3,029 8,344 923 51,222 3,680 102,094 9,575 93 2 795 5,33° 18,347 7,665 17,697 36,030 12,551 4, 134 616,850 322,440 June 1931. ____ ··················· 5o,o33 777,637 770,491 79 2,5o6 330,943 37,985 May 1931._ __ ····················· 852,650 31 2,156 43,849 503,333 June 1930.---····················· 6 Months 1931.. ................ 2,022,055 258,814 4,9 25,383 4,575,202 6 Months 1930.................. 2,125,720 3o1,557 5,478,700 4,374,078 • Includes 140,780 hogs shipped direct to packers' yards. July 1 July 1 5-Yr. Av. 1930 66,891 48,7 25 679,221 776,593 4,820 2,612 54,253 ·44,256 6,666 7,469 69,961 87,980 120,322 16o,469 10,743 9,79 1 3,290 2,312 89,025 35,1 55 106,522 55,939 90,421 74,948 (ooo omitted). *June I 1931 49,169 827,743 2,331 35,348 3,895 79,351 103,456 7,887 3,046 4,3°3 4,548 6,449 39,980 55,655 9, 235 8,935 8,552 49,459 80,226 PURCHASED FOR SLAUGHTER Sheep Cattle Calves Hogs 123,427 •202,733 I 5,215 53,781 218,803 146,492 4,658 84,469 108,177 23,780 76,713 6,945 2,358 15,665 9,781 38,583 10,287 14,920 6,743 7,009 II,J29 1,992 33,669 5,635 64,217 184,189 184,066 99,77 1 52,826 192,434 488,509 1,065,485 386,626 1,103,067 38,177 585,421 4 15,377 29,372 445,031 608,793 677,416 32,156 379,01 7 186,208 3,769,447 2,592,972 200,713 3,963,24o 2,804,098 THE MoNTHLY Rev1Ew Albuquerque, N. M ......... Cheyenne, Wyo .._ Colorado Springs, Colo Denver. Colo ... Hutchinson, Kans Joplin, Mo ..................................... Kansas City, Kans ... Kansas City, Mo.·- -····· Lincoln, Nehr Oklahoma City, Okla ........................... Omaha, Nebr................... Pueblo, Colo ..----······················· Salina, Kans ..---· Shawnee, Okla .................... St. Joseph, Mo Topeka, Kans Tulsa, Oki Wichita, Kans ...................... Total 18 citi 7 BUILDING PERMITS IN TENTH DISTRICT CITIES MONTH 01' JUNE Permits Value 1931 1930 1931 1930 60 84 $ 69,585 $ 86,976 41,180 41,125 # 45 18,895 50 3 29,923 34 1 00 805,800 400 4°3,7 5 3 22 46,000 17,600 25 20 103,000 13,246 47 66 21,980 126,700 54 197 196 829,450 97°,900 1 76 115,96o 95,'215 79 1,57 2,49 1 165 1,015,815 325 So 104 488,865 195,916 103,943 130 72 42,95 1 28 10,150 58,685 9 21,652 24 5,265 9 41 48 26,740 27,870 68,570 106,795 74 57 202 125 1,015,570 858,987 148 87 359, 202 700,3 25 1,579 2,161 July 4 this year, was only 66 percent as great as in the like period last year, 44 percent of normal, and 64 percent of the average for the past three years. Production of softwoods declined 33 percent and of hardwoods 42 percent. Shipments during the period were only 76 percent and orders received 77 percent as great as in 1930, and both softwoods and hardwoods shared equally in the declines. Cement There was about the usual seasonal decrease in the production of Portland cement at mills in this District in June as compared to May, the total being 3.8 percent smaller than in the preceding month, but there was a decline of 8.4 percent from the -corresponding month last year, For the third consecutive month shipments exceeded production, reducing stocks as of June 30 to the lowest month-end level since November, 1930. All mills in the United States, as reported by the United States Bureau of Mines, produced more Portland cement in June than in any month since October, 1930 and shipments were the largest since September of that year. Mills operated at 65.4 percent of capacity in June, 1931, as compared to 81.4 percent in June, 1930. Production, shipments, and month-end stocks of cement in the Tenth District and the United States is shown in the following table in thousands of barrels: TENTH DISTRICT UNITED STATES Production Shipments Stocks Production Shipments June 1931 ........ 1,485 1,581 2,339 14,125 16,094 May 1931 ........ 1,544 1,6o7 2,435 14,010 14,200 June 1930 ........ 1,622 1,700 2,287 17,239 18,781 6 Mos. 1931...... 5,762 5,790 60,140 58,436 6 Mos. 1930...... 7,467 7,088 75,894 70,138 Stocks 27,585 29,554 29,364 Building There was less residential construction in the Tenth District during June than in any month of the six years covered by reports of the F. W. Dodge Corporation. The total for June was 7.9 percent less than in May and 43.2 percent less than in June, 1930. The value of total building contracts issued in the District as a whole in June, although slightly larger than in the two preceding months, was the smallest for any June on six years' records and was 74.3 percent smaller than in June, 1930. The half year value of both residential and total building contracts was the lowest reported for any half year on record and was 45.5 and 47 percent, respectively, under the first half of last year. Eighteen Tenth District cities issued fewer building permits $4,345,979 1,6,571,048 Six MoNTHS Value Permits 1930 1931 1930 1931 ,, 1,125,049 1, 922,886 fl2 386 294,99° 173 175 205,470 259 654,118 1'!!3,884 298 4,002,800 2,276 2,705 4, 279,99° 1,244,819 219 207,364 172 116 622,572 142 337,6 25 302 775,230 443,398 373 8,202,075 1,109 1,155 3,599,55° 1,op,475 326 479,543 333 1,261 10,484,780 1,&23 9,843,4o5 2,329,614 3,586,844 4 24 549 275,748 329,589 437 577 100 144 147,937 333,747 110,905 204,767 147 58 253 268 293,51 I 615,193 1,885,686 420,930 357 329 2,762,482 1,196 4,337,83o 899 1,213,831 982 3,6o~,304 637 9,7°5 11 ,777 $28,26o,236 1,43,i5:2,7o5 in June and the first six months of 1931 than in any June and six months' period in the twelve years the reports have been received. The estimated cost of construction was also the smallest for any June or six months' period of record. The F. W. Dodge Corporation report on building activity in the Tenth District and the United States: TOTAL BUILDING CONTRACTS AWARDED T£N"TH DISTRICT UNITED STATES 1931 1930 1931 1930 June.. ................ 1,16,363,450 $ 63,727,271 1, 331,879,700 1, 6oo,573,400 May.................. 13,954,367 17,:216,399 306,079,100 457,416,000 Six Months...... 90,453,370 170,664,789 1,808,226,800 2,639,388,300 RESIDENTIAL CONTRACTS AWARDED UNITED STATES TENTH DISTRICT 1931 1930 1931 1930 June ................. . 1, 72,744,700 $ 96,815,500 ,, 1,96o,79 2 $ 3,45 1, 159 May................. . 88,899,600 l 16,568,500 2,129,151 3,385,148 Six Months ..... . 13,220,709 24,238,426 490,746,600 577,412,6oo Petroleum Crude oil prices in the Mid-Continent area were reduced an additional 15 cents per barrel the second week in July by many of the major purchasing companies. Posted prices for 40 degree gravity oil were reduced from 37 cents to 22 cents per barrel and low gravity oil from 25 cents to 10 cents per barrel. Not all purchasing companies reduced their schedule and several that did had returned to the previous price basis by July 21 . The average price paid for crude oil during July, 1930 was $1.30 per barrel. There was a slight decline in the daily average production of crude oil in the five 011 producing states of this District in June as compared to the preceding month, and gross production for the shorter month of June was 8.3 percent smaller than in May and 12.6 percent smaller than in June, 1930. Tenth .District production during the six months of the current year was 9.0 percent smaller than in the like period last year. The gross production figures for the five states and the United States are shown in the following: Oklahoma._........... Kansas.................. Wyoming.............. Colorado.-............. New Mexico·--····· GROSS PRODUCTION *June 1931 May 1931 June 1930 *6 Mos.1931 6 Mos. 1930 Barrels Barrels Barrels Barrels Barrels 16,706,000 18,427,000 19,382,000 99,439,000 113,835,000 3,095 ,000 3,245,000 4,064,000 18,937,000 21,247 ,0::>0 1,251,000 1,327,000 1,421,000 8,974,oo::> 7,793,000 133,000 130,000 131 ,ooo 845,000 791,000 2,685,000 1,315,000 1,400,000 733,000 7,365,000 TotaL ................... 22,500,000 24,529,000 25,731,000 134,325,000 147,586,000 United States.___ 74,009,000 77,164,000 76,51 3,000 420,307,000 465,610,000 • June 1931, estimated, American Petroleum Institute. 8 THE Mo~HLY REvTEW The effect of low prices for crude oil is evidenced by the curtailment of field operations, and, with the exception of May· this year, fewer w<:lls were complet~d -in June th.a n in any month in the 13 years records have been kept. The number of rigs up and wells drilling on July 1 was the smallest of record and marked the twelfth consecutive month that declines have been recorded. Following is the summary of June operations in this District: Wells Barre ls Daily Dry Completed New Production Wells Oklahoma·--··--············· 104 176,910 31 Kansas ......................... ; 47 21,260 14· Wyoming...................... 5 226 2 Colorado._..................... 5 o 4 New Mexico·--············· 3 r ,523 o June 193L................... May 1931.-.............. ... June 1930·--···········-- ... 6 Mos. 1931.............. ... 6 Mos. 1930.................. 164 112 524 1,053 2,544 199,919 48,461 451,p3 1,568,030 2,639,658 51 · 54 145 349 798 Gas Wells 24 12 o I 2 Rigs-Wells Drilling 333 159 97 8r 56 39 20 52 Shipments of zinc ore and lead ore from the three states m twenty-six weeks were as follows: SHIPME TS IN TWENTY-SIX WEEKS LEAD ORE Zrnc ORE Tons Value Tons Value 88,576 $2,110,485 10,337 1, 455,874 Oklahoma·--····························· 42,621 1,029,901 3,236 145,790 ~:;s:a;;;:::::::::::::::::::::::::::::::::::: . 726 J0',417 1,468 36,008 26 Wks. to June 27, 1931...... 26 Wks. to June '.l8, 1930...... Zinc a.ad .L..,Rd- Min~-1.g Mines in Missouri, Kansas, and Oklahoma produced less zinc ore and lead ore during the first half of 1931 thari in any corresponding period in the eight years coverep by our records. Compared to the first twenty-six weeks of 1930, zinc ore and leid ore production declined 46.I percent and 4S.3 percent, respectively. During the four , weeks ended 'June 27 zinc ore production decreased 8.7 percent but lead ore production increased 1.2 percent as compared to the preceding four weeks ended May 30. Compared to the corresponding four weeks ended June 28, 1930,. zinc ore production decreased 65 .6 percent and lead ore production decreased 76.0 percent . . $3,176,394 8,491,154 14,299 26,619 -1, 632,08.1 1,818,189 There was _a slight upturn in zinc ore prices the last week ir:i June and the first week in July, when quotations advanced $i per t-0n during each period to $25 per ton as compared to $29 per ton one year earlier. In the final week in June, lead ore prices advanced $10 to $12 per ton to a basis of $40 to $42 per ton as compared to $60 per ton in the corresponding week of 1930. 188 251 There h as been a rapid rise in the ·daily average number of barrels of crud e oil run to Mid-Continent refinery stills since March, the low point of the year, to July 1, when the daily average exceeded 585,000 barrels, 'the highest in" the history · of that area. 132,665 246,234 Bitu"'l'li ous Coal June production of soft coal in the six coal producing states of the Tenth District was seasonally the smallest of the year·and was 16.6 percent, or slightly more than the usual ·seasonal amount, smaller than in May. The June total was 20.o·percent less than for the like month las t year, and was the, smallest monthly total reported since May, 1922, arid the smallest June total on rec9rds covering the past twelve years. Production during June and the half-year in the Tenth District and the United States is shown in ·the following table: Colorado_ ..... :....... Kansas ................ Missouri .............. ~ ew Mexico ....... Oklahoma .. ·- ······" Wyoming ............ *June 1931 May 1931 June 1930 *6Mos. 1931 6 Mos.1930 Tons Tons Tons Tons Tons 268,000 3,881,000 392,000 3,008,000 395,000 I I 5,000 147,000 1,147,000 . 1,086,000 135,000 1,703,000 225,000 J,309,000 173,000 179,000 120,000 140,000 113,000 778,000 970,000 1,204,000 125,000 76,000 90,000 717,000 000 2,166,000 2,670,000 279,000 J'.25,000 352, Six States ........._. r,058,000 United States ..... 29,165,000 *June estimated. 1,269,000 1,322,000 9,125,000 11 ,514,000 28,314,000 33,714,000 189,777,000 230,634,000 Business Conditions in the United States · By · the F~deral Reserve B oard Industrial rroc!uc tion showed more than th e usu~! seasonal de 7Jine in Ju,,:ie and factory employment and ·pay rolls decreased. Wholesale ptices, which had continu d to decli ne until the end of May, advanced in June, but for most C0'71moditie~ <ieclined again in the first half of July. · PRODUCTION: A decrease in industrial output from May to June was re~ fleeted in a decline in the Board's index of industrial production, which is adjusted for seasonal variations, t o 86 percent of the 1923-197-5 output, as compqred with 89 percent in May. T aking the second quarter of the year as a v,hole, production has aver'a ged about 4 percent above its low level in the la~t three months of 1930. The reduction of activity in June was most _m arked in the iron and ste<;l industry, with steel plants operating at 38 pe cent of capacity. Automobile output decli ned further, and there was some recession in production of lumber, meat products, and flour. Petroleum output, however, w1s not reduced. · Activity of textile mills and ~hoe factories continued · i~ relatively large volume. In the woolen industry, activity was sustained at the unusilally high level of May and the decline in the consumption of cotton was not in e ·cess of the usual seasonal amount. During the first half of J uly there were further reductions, partly seasonal in n ature, in oi:itput of steel, automobiles, and lumber. Factory employment was fu;ther reduced by nearly J percent, and payrolls declined by six percent between the mid .lie of May and th e middle of June. The largest decreases were in the steel, machinery, and women's clothing industries, while reductions in automobile plants and cotton mills were partly seas~:mal in character, and employment in woolen and hosiery mills increased. Building contracts awarded in June were somewhat larger than in !\fay, but declined again in the first half of July. Since the early spring awards have not increased as much as is usual for the season. In residential building there has been relatively little change for about a year ·. a11d a half, except f~r seasonal fluctuations, and the decline in construction has· been chiefly in other types ot building, principally public works and utilities. · . 0 DISTRIBUTIO:N': At department stores, daily average sales were seasonally smaller in June than in May. Freight car loadings were also reduced, reflecting principally a further reduction in loadings of miscellaneous commodities. PRICES: During June wholesale prices of many commodities advanced con-· siderably, after having reached low levels late in May and early in June. Prices of livestock and meats increased and after June 21 there were rapid advances in prices of raw materials important in world markets, especially cotton, hides, sugar, silk, copper, silver, and rubber. Subsequently, however, most of these prices receded somewhat, although in mid-July they were, in general, above their lowest levels. The price of wheat declined during June and the first h alf of July, as the domestic price became adjusted to world levels. BANK CREDIT: At reporting member banks in leading cities, loans on securities continued to decline between the middle of June and the middle of July while all other loans increased by $r 40,000,000. This increase was concentrated at rew York City ban(s, and was largely in t he form of acceptances purchased in the open market. Member banks' investments continued at about t~e same level as in May and early June. Notwithstanding a further addition of 77,000,000 to the country's stock ot monetary gold between the wee ·s ending June 20 and July 18, there was no decrease in Federal reserve bank credit outstanding. During the period the reserve ban s' portfolio of United States securities was increased by $75,000,000 while their combined holdin~s of accep tances and of discoun ts for member banks d-..creased by approximately the sa:ne amount. The gold inflow provided member b~nks with fur:ds to meet an added demand for currency, as well as to increase their balances with the re,erve banks. There was also a considera'.>le growth in foreign bank deposits with the reserve banks. Money rates continued at low lev'els.
@FedFRASER