Full text of Economic Review (Federal Reserve Bank of Kansas City) : August 1, 1933, Vol. 18, No. 8

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THE MONTHLY REVIEW
Of .Agricultural, Industrial, Trade and Financial
Conditions in the Tenth Federal Reserve District

FEDERAL
Vol.

I

8

RESERVE
K AN S A S

BANK

CITY, Mo., AuGusT

ROPS in this District deteriorated rapidly in June and

C

the forepart of July.

Extreme temperatures and continued drouth have cut prospective yields of practically
all crops to the lowest levels in recent years. In western and
southern areas corn is virtually a complete failure, and in
Nebraska, northeastern Kansas, and northern Missouri, where
prospects are still good, the crop is in immediate need of generous rains. Harvest of the smallest crop in years of winter
wheat and oats is virtually completed.
Grain prices advanced rapidly between June 15 and July 18
then dropped perpendicularly July 19 and 20, with all classes
dosing somewhat above June 1 quotations. The fluctuation
in cotton prices was similar to that of grains. Livestock prices
decreased slightly in June and improved somewhat the second
and third weeks of July. Advances in wool and hide prices
were more moderate in June than in the two preceding months.
Butterfat and eggs advanced in June but poultry declined.
Increases in potato prices were rapid and extensive.
Trade at both wholesale and retail improved further in June.
Wholesalers reported their sales increased somewhat more
than usual as compared to May, whereas, department store
sales declined at about the usual seasonal rate. June sales of
five representative wholesale lines combined were 11.6 per
cent larger, and sales of thirty-two department stores were
1.8 per cent larger than a year ago.
June marketings of wheat, corn, oats, and rye were heavy.
Production of flour and crude oil and shipments of zinc ore
and lead ore were larger than a year ago, but the output of
soft coal declined 6.4 per cent. Building activity continued
quiet.
Bank debits showed the first increase over the previous year
since November, 1929, and Federal reserve bank clearings
were 8.9 per cent larger than a year ago. Member banks increased their loans and discounts 3.8 per cent between June 14
and July 12 and their investments 7.7 per cent. Net demand
deposits were 9.3 per cent and time deposits 1.3 per cent larger
on July 12 than four weeks earlier. Savings deposits and the
number of savings accounts, at forty-five selected banks, increased slightly between June 1 and July I.

Banking and Credit

OF
I,

KANSAS
1933

CITY
No. 8

BUSINESS IN THE TE TH FEDERAL RESERVE DISTRICT
Percentages of Increase, or Decrease (-), for June 1933 over May 1933 and
June 1932 and for the first six months of 1933 over the like period in 1932.
June 1933
6 Mos. 1933
Compared to
Compared to
Banking
May 1933 June 1932 6 Mos. 1932
Payments by check.... _ _ _ _ __
19.6
2.6
-14.6
Federal Reserve Bank clearings...........•
12.1
8.9
- 8.o
Business failures, number.... _ _ __
17.4
Even
-25.0
Business failures, liabilities _ _ __ -13.7
-38.7
-39.o
Loans, 53 member bank.,__ _ __
3.8
-11.6
Investments, 53 member banks ............
7.7
18.6
Net demand deposits, 53 member banks
9.3
9.6
1.3
- 8.o
Time deposits, 53 member banks.---···
0.1
- 8.1
Savings deposits, 45 selected banks·-···
Savings accounts, 45 selected banks ....
0.3
- 3.1
Distribution
11.6
-Wholesalers' sales, 5 lines combined ....
- 6.5
4.5
1.8
-12.3
Retailers' sales, 32 department stores.. - 1 3.3
I ,I
13.2
Lumber sales, I 56 retail yards ..............
44.7
-14.9
Life insurance, writte~----- - 2.3
- 9.3
Production
Flour_ _ _ _ _ _ _ _ _ __
-11.4
4,7
5.3
Crude petroleu .. .__ _ _ __
6.8
1.7
11.7
Softcoa.,___ _ _ _ _ _ _ __
-11.3
-10.8
- 8.5
48.0
Zinc ore (shipped) Tristate District.... .
68.5
77.0
14.I
210.3
Lead ore (shipped) Tristate District....
94•9
Cemen...__ _ _ _ _ _ _ _ __
0.9
10.8
-0.3
-43.0
Building permits in 17 cities, value..... . - 3.5
-38.7
Grain receipts, 5 markets
WheaL ......... _ _ _ _ __
-33.I
45.9
69.5
Corn .... _ _ _ _ _ _ _ _ _ _ __
160.6
684.0
12.3
68.1
424.6
Oats·---·· · · · · · · - - - - - - - - 55-4
Livestock receipts, 6 markets
Cattle _ _ _ _ _ _ _ _ __
- 1.9
- 6.2
11.4
Calve.,___ _ _ _ _ _ _ _ __
13.0
-17.8
-4.4
Hogs .. _ _ _ _ _ _ _ __
-7.0
10.7
34.4
-14.0
-14.6
Sheep ................ - - - - - - - - -1.7.5
10.6
10.4
Horses and mules
-4.9
Meat packing, 6 markets
Cattle.. _ _ _ _ _ _ _ _ _ __
- 1.3
14.8
3.4
Calve_,___ _ _ _ _ _ _ _ __
-0.5
8.6
- 1.4
Hogs _ _ _ _ _ _ _ _ _ __
0.7
64.6
14.1
-14.0
- 9.2
Sheep ........ - - - - - - - - - -22.5
Stocker and feeder shipments, 4 markets
27.8
-34.8
35· 1
Cattle
--_
· ·_
· ·_
· ·_
·························
Calve.,_-_
_
_ _ __
32.2
7o.5
-47.6
129.0
56.7
Hogs .............................. - - - - - -27.1
10.7
Sheep .................- - - - - - - - -35.5
59-4

MEMBER BANK OPERATIONS: The combined state- Government securities accounted for the increase in total
ments of fifty-three reporting member banks in leading cities investments, as investments in other bonds, stocks, and securiof the District showed their total loans and discounts increased ties were reduced 2.7 per cent.
3.8 per cent, investments 7.7, net demand deposits 9.3, and
Total loans and discounts of these banks as of July 12 were
time deposits 1.3 per cent for the four weeks' period ended 11.6 per cent less than on July 13, 1932, loans on stocks and
July 12. The increase in loans and discounts was in "all other" bonds having declined 17.1 per cent and "all other" loans 9.5
loans, as those secured by stocks and bonds showed no change. per cent. Investments in United States securities, which inAn increase of 14.9 per cent in investments in United States creased 38.1 per cent during the fifty-two weeks, more than
This Copy Released For Publlcation:In Afternoon Newspapers, July 29.

'2

THE MONTHLY REVIEW

offset the decline of 4.4 per cent in investments in other bonds,
stocks, and securities, resulting in total investments showing
a gain of 18.6 per cent for the year. Net demand deposits
as of July 12 were 9.6 per cent larger but time deposits were
8 per cent smaller than on July 13, 1932.
Principal resource and liability items shown in the condition
statements of the reporting member banks as of July 12 and
June 14, 1933, and July 13, 1932:
Loans and investments-total..
Loans and discounts-total_ __ .
Secured by stocks and bonds
All other loans and discounts
Invcstmen ts-to ta
U. S. securities ......
Other securitie
Reserve with F. R. bank.---····
Net demand deposits
Time deposits-..
Government deposits

July 12, 1933
f,513,000,000
220,000,000
58,000,000
I 62,000,000
293,000,oco
185,000,000
108,000,000
61,000,000

365,000,000
I 62,000,000
10,000,000

June 14, 1933
f,484,000,000
212,000,000
58,000,000
I 54,000,000
272,000,000
161,000,000
I I I ,000,000
49,000,000
334,ooo,ooo
16o,ooo,ooo
1,000,000

July 13, 1932
f,496,000,000
249,000,000
70,000,000
179,000,000
247,000,000
134,000,000
I 13,000,000
42,000,000

333,000,000
176,000,000
4,000,000

RESERVE BANK OPERATIONS: Borrowings of mem her
banks at the Federal Reserve Bank of Kansas City, as shown
by the weekly condition statements of this bank and branches,
declined from their 1933 peak of $30,882,661 on March 8 to
$8,250,426 on July 12, on which date they were $14,695,022
less than on July 13, 1932, and the lowest since February 21,
1928. Holdings of bills purchased in the open market which
stood at $9,598,964 on March I totaled but $205,577 on July
l'.2, or $1,330,826 less than a year earlier.
During the four weeks ended July 12 this bank purchased
$2,588,000 of United States Government securities, bringing
total holdings as of that date to $63,146,100, the highest of
record, which compares with $56,366,100 held on July 13,
1932. Total holdings of bills and securities as of July 12 were,
due to the heavy reductions in bills rediscounted for member
banks, 0.5 per cent smaller than four weeks earlier and 11.4
per cent smaller than one year earlier.
Both Federal reserve note and Federal reserve bank note
circulation increased slightly during the four weeks' period,
with circulation of the former on July 12, 23.5 per cent above
that of a year ago. No Federal reserve bank notes were in
circulation last year. Member banks' reserve deposits increased 23.7 per cent in four weeks and 42.3 per cent in fiftytwo weeks.
Changes in the principal items of the weekly condition
statement of this bank and branches, in four weeks and fiftytwo weeks, are shown below:
July 12, 1933 June 14, 1933 Tuly 13, 1932
Gold reserve.,___ _ _ _
f,146,670,507 f,121,075,748
f, 79,097,965
Other cash .. _ _ _ _ _ _ _
10,527,411
11,386,570
6,995,923
Bills discounte.....__ _ _ _ _
8,250,426
11,149,069
22,945,448
Bills purchased ......... _ _ _ _
205,577
283,391
1,536,403
U. S. securities............................
63,146,100
60,558 ,100
56,366,100
Total bills and securities............
71,602,103
71,990,560
80,847,951
Total resources .... _ _ _ _ _
259,273,623
230,677,623
193,310,677
F. R. notes in circulation..........
112,260,375
111,954,275
90,865,565
F. R. bank notes in circulation..
976,000
870,000
................... .
Member banks' reserve deposits
96,458,609
78,006,712
67,808,393
The discount rate of the Federal Reserve Bank of Kansas City, on all classes
of paper and all maturities, remained unchanged at 3.½ per cent.

SAVINGS: Forty-five banks in selected cities of the District
reported a fractional increase during June in both the amount
of their savings deposits and the number of savings accounts.
Total savings deposits reported by these banks as of July 1
this year were 8.1 per cent less than on July I last year, and
the number of depositors had declined 3.1 per cent.

A summary of savings accounts and savings deposits at the
forty-five banks follows:
Savings Deposits
f, 99,720,788
99,601,699
108,519,978

Savings Accounts

367,735

July I, 1 9 3 ~ - - - - - - - June I, I 933···--···································
July 1, 1932..........................................

366,677
379,524

Bank Debits
Banks in twenty-nine leading cities of this District reported
amounts debited to individual accounts in the four weeks
ended June 28, 1933, as 2.6 per cent larger than in the four
weeks ended June 29, 1932. This increase over the corresponding period in the preceding year is the first reported since
November, 1929, compared to November, 1928. The total
also exceeded that of the four weeks ended May 31 by 19.6
per cent. Payments by check for the twenty-six weeks this
year were 14.6 per cent less than for the like period last year.
Totals by cities for the four weeks and twenty-six weeks this
year, compared to the corresponding four and twenty-six
weeks last year, follow:
PAYMENTS BY CHECK
(In thousands of dollars~ omitted)
FOUR WEEKS ENDED
TWENTY-SIX WEEKS ENDED
June2~1933June29,1932 June28,1933June29,1932
Albuquerque, N. M .. _. f,
5,222 f,
7,267
f, 35,706 '/, 48,042
Atchison, Kans.·---·····
2,890
2,798
14,980
17,731
Bartlesville, Okla.·--···
15,473
14,496
105,057
93,516
Casper, Wyo.·--···········
3,401
3,994
20,980
27,041
Cheyenne, Wyo...........
4,410
4,544
26,004
28,696
Colorado Springs, Colo.
8,995
9,935
55,623
65,474
Denver, Colo...............
94,660
92,946
574,290
647,772
Enid, Okla...................
10,158
7,183
38,368
41,807
Fremont, Nebr.. _.........
1,608
2,111
9,450
14,712
Grand Junction, Colo.
1,034
1,623
6,652
11,731
Guthrie, Okla .. _...........
1,426
966
6,358
7,193
Hutchinson, Kas.........
12,188
9,828
50,593
57,847
Independence, Kans._.
2,325
2,870
14,388
31,702
Joplin, Mo...................
6,235
6,071
39,146
37,004
Kansas City, Kans.....
9,654
11,147
56,476
71,363
Kansas City, Mo.........
244,688
229,892
1,285,382
1,498,131 ·
Lawrence, Kans.·-·······
3,080
3,184
16,834
20,506
Lincoln, Nebr..-...........
18,199
19,983
105,423
137,882
Muskogee, Okla .. _.......
5,274
5,336
33,284
38,677
Oklahoma City, Okla.
60,610
56,094
332,193
365,783
Okmulgee, Okla...........
2,242
2,086
11,630
13,645
Omaha, Nebr...............
105,340
104,043
575,702
696,350
Pittsburg, Kans...........
2,481
2,775
17,192
20,'.ll6
Pueblo, Colo.·--·······-9,380
u,582
57,940
74,088
Salina, Kans.................
8,076
5,199
33,816
38,589
St. Joseph, Mo•.-.........
24,161
19,419
124,801
150,453
Topeka, Kans.·--·········
10,698
11,806
73,583
79,428
Tulsa, Oki...____
58,455
67,285
376,173
451,585
Wichita, Kans.............
32,065
28,437
166,217
204,196
Total 29 cities ..........__

$ 764,428

$ 744,900

$4,264,241

$4,991,160

Federal Reserve Bank Clearings
Check collections through the Federal Reserve Bank of
Kansas City and branches at Denver, Omaha, and Oklahoma
City during June were 4.4 per cent larger as to numbers and 12.1
per cent larger as to dollar amount than in May. Compared
to June, 1932, there was a 4.6 per cent decline in the number
of items handled, but the dollar amount was 8.9 per cent greater.
Collections for the half year declined 17.2 per cent as to the
number of items and 8 per cent as to amount compared to the
like period in 1932.
The figures for June and the six months follow:
.AMOUNT

June ................. .
May..................
Six months·--···

1933
4,400,107
4,213,096
23,050,578

1932
4,614,109
4,63x,o99
27,851,742

1933
f, 588,055,000
524,805,000
2,972,639,000

1932
f, 540,241,000
516,134,000
3,232,070,000

THE MONTHLY REVIEW

Stores
Reporting
Kansas City________ 4
Denver_ _ _
4
Oklahoma City____ 3
Tulsa____________________ 3
Wichita______ __________ 3
Other cities __________ I 5

RETAIL TRADE AT 32 DEPARTMENT STORES IN THE TENTH FEDERAL RESERVE DISTRICT
SALES
STOCKS (RETAIL)
ACCOUNTS RECEIVABLE
A.MOUNTS CoLLECTBD
June 1933
6 Mos. 1933
June 30, 1933
STOCK TURNOVER
June 30, 1933
June 1933i
Compared to Compared to
Compared to
June
6 Months
Compared to
Compared to]
June 1932
6 Mos. 1932 May31,1933 June30,1932 1933 1932 1933 1932 May31,1933
June30,1932 May 1933 June 1932
- 2.5
-11.6
- 1.3
-14.9
-IO.I
-19.3
.19
.15 I.04
•99
- 6.5
- 4.0
II.2
- 7.6
- 1.9
-16.9
.30
.22 I.52 1.30
3.1
- I.4
0.2
- 1.3
6.5
-14.3
- I.2
-24.5
,26
,18 1.73 I.38
- 2.6
- 7.0
4.9
- 1.9
8.4
- 2.6
2.5
- 2.0
.30
.26 2.44 2.II
- 2.4
2.5
-- 5-4
- 6.1
-15.6
-16.2
1.3
-38.8
.24
.18 1.47 1.16
- 2.9
-29.4
2.6
-15.5
- 3.2
-14.7
- o.6
-13.1
.22
.20 1.37 1.33
- 3.9
-10.5
6.5
- 7.1

Tota.___ _ _ 32
1.8
-12.3
- 3.7
-17.8
.24
.19
NOTE: Percentage of collections in June on accounts May 31, all stores reporting 34.3.

Business Failures
Dun and Bradstreet, Inc., reported 16 more business failures
for the Tenth District in June than in May and the same
number as a year ago. Liabilities involved were, however, the
smallest for any month since November or for any June since
1929. In the six months of the current year the number of
failures was the smallest for any like period since 1923, and
liabilities the smallest since 1929.
For the United States June and half year liabilities were
lower than for the like month and six months of any year
since 1929, June numbers the smallest since 1926, and half
year numbers the smallest since 1929. The number of insolvencies in June was the smallest for any month since September,
1929, and the amount of liabilities the smallest since October
of the same year.
Failures for June and the six months with comparisons:
TENTH
Number
June 1933_______ _ _
108 t,
May 1933------------------------·---92
June 1932_____________________________
108
Six months 1933__________________ 616
Six months 1932__________________ 821

DISTRICT
Liabilities
1,0I9,170
1,595,439
3,237,825
8,851,907
20,987,847

UNITED STATES
Number
Liabilities
1,648 t, 35,344,909
I,9o9
47,97I,573
2,688
76,931,452
12,723
327,590,748
17,433
537,284,288

Trade
RETAIL: Thirty-two department stores, located in Tenth
District cities, reported their June sales in dollars declined 13.3
per cent, or practically the usual seasonal amount. Total sales
were 1.8 per cent larger than a year ago although retail prices
averaged somewhat lower. This June increase was the first
reported for that month in four years and compares with an
increase of o.8 per cent for May this year over May last yea~,
the first increase for any month over the previous year since
May, 1930. For the fourth consecutive year, six months'
sales were smaller than for the like period in the preceding
year, declining 12.3 per cent.
Inventory reductions were somewhat smaller than usual in
June, amounting to 3.7 per cent with stocks on hand June 30,
17.8 per cent lighter than one year earlier. The stock index
as of June 30 was, with the exception of January 31, the lowest
for any month-end in over ten years.
Collections in June amounted to 34.3 per cent of amounts
outstanding at the close of May, compared to ratios of 35 per
cent reported for May this year and 32.7 per cent for June
last year.

Reporting
Stores
Dry goods ______________________ 6
Groceries _ _ _ _ _ 5
Hardwar...__ _ _ _ 9

5
Drugs______ 6

Furnitu.r...._____

3

1.37 1.23
- 1.9
- 7.1
Collections same month last year 32.7.

- 6.o

WHOLESALE: June dollar sales of all five reporting wholesale lines, except furniture, were larger than in May, with
those of dry goods, hardware, and furniture showing substantial improvement over a year ago. Sales of drugs declined
6.9 per cent from June of last year and sales of groceries were
unchanged. Increases for June over June a year ago of 25.7 per
cent for dry goods, 27.7 per cent for hardware, and 65.7 per
cent for furniture were the first reported in six years for the
former and in four years for the other two, and the largest in
recent years for either. The decrease in drug sales was the
smallest in four years and grocery sales held their own after
two successive declines. The June to May comparison for
dry goods, hardware, and furniture was the best for several
years.
Wholesalers of groceries and furniture enlarged their inventories 5.4 and 12.8 per cent, respectively, m June, contrary to
the usual seasonal tendency. Stocks of dry goods, hardware,
and drugs were slightly smaller on June 30 than on May 31,
but all reductions were less than usual. Compared to June 30,
1932, the following reductions in inventories are reported:
dry goods, 10.2; groceries, 1.8; hardware, 12.7; furniture, 8.3;
and drugs, 16.5 per cent.

Grain Marketing
Higher grain prices stimulated the marketing of all classes
of grain except barley and kafir, according to the monthly
reports of the five principal grain markets of this District.
June marketings of wheat were the heaviest for that month
in recent years, corn since 1927, oats since 1925, and rye since
1920. Receipts of barley, although 23.3 per cent larger than
a year ago, were below average and those of kafir were the
smallest for any June since 1923, equalling about 23 per cent
of normal.
Half year marketings of wheat, barley, and kafir were smaller
than a year ago, but those of corn, oats, and rye were substantially larger. Rye was the only class of grain, the marketing of which exceeded the ten-year average for the six months'
period.
Receipts of wheat at these markets for the wheat year ended
July 1, 1933, were the smallest since the wheat year of 19251926, totaling but 143,457,550 bushels as compared to 263,555,000 bushels received in the wheat year ended July 1, 1932.

WHOLESALE TRADE IN THE TENTH FEDERAL RESERVE DISTRICT
OuTSTANDINGS
AMOUNTS COLLECTED
SALES
June 30, 1933 compared to
June 1933 compared to
June 1933 compared to
May 31, 1933 June30,1932
May 1933
June 1932
May 1933
June 1932
2 5·7
- 3.8
- 4.0
5.3
- 7.7
9·9
2.1
1.9
Even
5-4
16.7
-0.2
9.7
20.9
9·9
27.7
1.0
- 4.8
9.8
- 8.6
65.7
-10.0
o.8
- 6.9
2.7
- 1.3

STOCKS
June 30, 1933 compared to
May31,1933
June30,1932
- 1.3
-10.2
5-4
-1.8
-0.2
-12.7
12.4
- 8.3
-o.6
-16.5

THE MONTHLY REVIEW

4
Receipts of grain at the five markets:
Hutchinson .....•
Kansas City·--·
Omaha.·--········
St. Joseph. ___ .
Wichita._.......

Corn
Wheat
Bushels
Bushels
2,651,400
1,250
7,296,000 1,951,500
1,800,000 2,443,000
1,235,200 1,989,000
16,900
3,613,500

June 1933_____ 16,596,100
May 1933·- ····-· 9,790,850
June 1932·-······ u,374,200
6 Months 1933.. 48,305,000
6 Months 1932_ 72,182,700

Oats
Bushels

Rye
Bushels

Barley
Bushels

Kafir
Bushels

124,000
906,000
474,000

4,500
II4,800

24,000
27,200

89,600

5,200
5,250

1,500

6,401,650 1,505,500
5,698,200 969,000
816,500 287,000
21,936,300 5,737,000
8,418,350 3,412,500

56,450 94,800
97,750 135,700
45,800 172,700
304,300 775,100
403,450 1,715,100

n9,300
102,700
8,800
437,000
90,6oo

In 1932 the trend of grain prices from May 31 to July 15
was down, whereas, this year it has been sharply upward.
Subnormal yields of winter wheat, oats, and rye and weather
conditions that were unfavorable to corn, spring wheat, hay,
and other growing crops have created an active demand for
grains in recent weeks.
The following table shows the principal changes in cash
grain prices at Kansas City in cents per bushel, for the dates
under review:

No.
No.
No.
No.
No.
No.

July

June

15

30

May
31
1933 1933 1933
1 Dark and hard wheat...... $1.07.½ $ .89.½ $ .69 $
2 Mixed cor•. _ _ _ _ _ .59.½ •49
.40
2 White oat.,_____ .44,½ .42
.25
2 Rye.·-··· · - - - - - .96
.69
.48
2 Barley._______ -53
•44
.30.½
2 Kafir...... - - - - - - 1.45
1.27
.82

July

June
30
1932 1932
.41¼ $ .41¼ $
.31,½ .29
.19
,21

15

•33

.35

.27.½
•57

•54

.29

May
31
1932

.52¼
.30.½
.23
,42

.33
.55

FARM STOCKS OF GRAIN: On July I there were,
according to estimates of the United States Department of
Agriculture, 23,992,000 bushels less wheat, 1,266,000 bushels
less oats, and 69,618,000 bushels more corn on farms in the
seven states, whose areas or parts thereof comprise this District,
than on July 1, 1932. Farm stocks of wheat in the United
States were 11.8 per cent smaller and those of corn 18.5 per
cent, and of oats 43.7 per cent larger than a year ago.
Stocks of grain on farms July I this year and last year, in
thousands of bushels, ooo omitted:
Colorado.--···········
Kansas ................Missouri. ...·-·········
Nebraska .............•
New Mexico_____.
Oklahoma.___........
Wyoming..............

All Wheat
1932
1933
1,331
670
12,786
28,784
3,891
1,194
6,655
9,34°
114
557
4,363
5,994
219
34 2

Seven states.-.......
United States. ___

26,124
79,6o5

50,u6
90,284

1933
1,318
30,006
40,692
78,469
283
6,479
66

Corn
1932
1,687
18,861
27,121
32,658
739
6,558
71

shipping directions on old contracts, but the situation reversed
itself rapidly the closing weeks of the month, mills having to
work overtime and some even buying flour to meet directions.
Early in the month both buyers and sellers were in doubt as
to the effect of the impending processing tax of 30 cents per
bushel on wheat which eventually went into effect at midnight of July 8. With bakers given a ninety day grace for
payment of the flour tax, whereas, the tax applied to millers'
stocks immediately, there was a rush of shipping directions
on old contracts. Furthermore wheat prices advanced sharply,
resulting in a few large orders and numerous round lot sales.
Flour prices advanced approximately $1 per barrel in June
and $1.6o to $1.75 the first week of July, with the large part
of the latter advance due to the processing tax which amounts
to $1.38 per barrel.
Millfeed demand, which opened the month sluggish, improved as grain prices advanced and the heat and dry weather
damaged pastures and crops. Prices advanced rapidly the
latter half of the month as mill offerings were light despite
heavy running time, and bran and shorts closed the month
with a net gain of about $7 per ton.
Flour production for June and the wheat year, with comparisons, in barrels:

Oats
1932
1933
744
443
6,n9
4,494
8,057
3,781
14,096
5,962
28
103
2,401
6,481
178
533

157,3 13
620,903

Flour Milling
Production of flour at Tenth District mills for the wheat
year ending July 1, 1933, totaled, according to estimates based
on the weekly reports of southwestern mills to the Northwestern Miller, 23,883,580 barrels as compared to 24,369,517
barrels milled in the preceding wheat year. Output from
January I to July I totaled 11,859,949 barrels this year and
11,266,902 barrels last year.
June output was 11.4 per cent below the May output but
4.7 per cent above that of June, 1932. Mills operated at 59.5
per cent of capacity in June, 64.6 per cent in May, and 56.6
per cent last June.
Flour trade was extremely dull the forepart of June, mills
reporting very little new business and complaining of poor

Atchison.._............
Kansas CitY·-- ·····
Omaha ..................
Salina....................
Wichit _ _ __
Outsid...__ _ _

June
1933
130,235
481,716
110,403
121,276
162,236
830,822

MayJ
1933
134,135
583,564
n1,830
125,169
165,991
951,866

June Wheat Year Wheat Year
1932
1932-33
1931-32
102,287 1,558,750 1,448,289
525,355 6,852,383 7,391,148
66,557 1,239,166
988,508
146,601 1,867,9n 1,985,881
209,309 2,353,531 2,280,953
703,452 10,011,839 10,274,738

Tota.___ _ _
1,836,688 2,072,555 1,753,561 23,883,580 24,369,517
*United States.--. 5,342,066 5,802,085 5,029,422 67,070,793 69,669,568
*Represents about two-thirds of the total output in the United States.

Crops
The Crop Reporting Board of the United States Department
of Agriculture characterized the first six months of 1933 as
the least favorable for crop production of any crop season in
fifty years. The total wheat crop, even with average weather
conditions the remainder of the season, will be the smallest
since 1893. Corn production is likely to fall below 2,400,000,000
bushels for the fourth time in thirty-two years. Oats production will be the smallest since 1897 and hay production almost
as low as that of 1930 and 1931. In the case of many crops
nothing comparable has ever been reported and, in proportion
to the numbers of livestock on farms, the production of grain
is expected to be lower than in any year since 1901.
Tenth District crops show a material reduction from a year
ago, both as to yield and the acreage harvested or to be harvested. The acreage of tame hay, cotton, dry beans, sugar
beets, and tobacco is larger than that of 1932, with ultimate
production of spring wheat, beans, sugar beets, and apples
forecast as above last year's yields. Tobacco is the only crop
to show promise of exceeding the 1926-1930 average yield,
with grapes equal to 100, sugar beets 95.9, corn 95.8, tame
hay 84.1, wild hay 70.3, winter wheat 42, spring wheat 67.9,
all wheat 43, oats 6'2.2, barley 65.5, rye 43.2, flaxseed 47.8,
white potatoes 71, sweet potatoes 71.4, dry beans 72.2, apples
76.5, peaches 39.4, and pears 45.3 per cent of the five-year
average.
July I crop prospects in Colorado and Wyoming are described
as the poorest of record, with Oklahoma experiencing one of
the worst drouths in the history of that state and Kansas the

THE MONTHLY REVIEW

5

ESTIMATED PRODUCTION OF LEADING FARM CROPS IN THE UNITED STATES AND THE TENTH FEDERAL RESERVE DISTRICT
From Reports of the United States Department of Agriculture and State 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
Yield July Est. Yield July Est. Yield July Est. Yield July Est. Yield July Est. Yield July Est. Yield
July Est.
1933
1933
1933
1933
1933
1932
1932
1932
1932
1932
1932
1932
1932
1933
Colorado................
1,904
6,804
2,805
II,000
2,316
19,090
2,176
1,830
7,642
4,383
13,363
3,384
I0,790
3,54 2
Kansas
6o
153 112,635 136,197
1,800
56,696 106,398
1,584
24,704
9,856
2,193
5,148
1,245
34,572
Missouri.-......... _ _ I 5,250
180
14,851
24,926
5,200
2,285
70
2,750
2,352
34,371
323
75 146,752 186,721
Nebraska................
2,020 255,450 269,293
24,600
18,36o
7,200
23,264
24,486
2,926
74,190
2,517
8,775
3,3 15
9, 295
208
221
New Mexico..........
1,320
2,520
722
920
250
3,267
560
510
322
322
79 2
434
Oklahoma ..............
28,848
24,012
2,418
43,626
22,323
19,692
3,108
65,760
1,725
520
746
747
Wyoming................
1,100
2,628
2,610
2,024
1,320
2,961
2,176
1,650
2,413
1,040
1,342
476
3,300
969
Seven states·---·····
Tenth District._.....
United States........

127,230
114,608

335,767

196,278
183,800
461,679

7,820

7,665
142,338

6,340 561,398 676,625
6,117 443,239 524,390
224,736 2,384,032 2,875,570

hottest and second driest June of record. Recent rains in
New Mexico have improved crops and ranges in that state.
In Missouri and Nebraska yields and prospects are below
normal.
June was an exceedingly dry, hot month throughout the
entire Tenth District and all crops deteriorated somewhat.
Showers, which fell the first half of July, were local in character
and confined chiefly to the northeastern part of the District,
restoring surface-soil moisture but not relieving the sub-soil
deficiency. Drouth continues in western and southern Oklahoma, western Kansas, western Nebraska, eastern Colorado,
and eastern New Mexico. Corn, oats, and barley in these
areas are practically a complete failure and pastures are burning
out. Nebraska reports corn as having a chance to make a
good crop but requiring considerable moisture immediately
as it is in or near the tassel stage. Corn prospects in northern
Missouri and northeastern Kansas are also good and on the
bottom lands of northern Oklahoma and southern Kansas
they are fair. Chinch bugs have caused some damage in fields
bordering wheat or oats. Grasshoppers have caused considerable damage in Nebraska where state funds are being used to
fight them.
Harvest of small grains is virtually completed and plowing
for fall seeding of winter wheat has commenced where soil

101,372 174,410
80,222 145,4 27
698,941 1,238,231

21,832
21,600
169,951

39,702
39,500
299,95°

28,521
26,006
306,423

35,391
30,854

357.679

10,172
8,054
66,047

I0,878
8,809
69,794

moisture permits. Threshing returns indicate yields are, in
some instances, exceeding expectations but that fields are very
spotted, with much of the grain shriveled but most of it running
high in protein. Oats, on the whole, were poor, the Nebraska
crop the smallest in fifty years with heads generally poorly
filled and the grain light.
Potato digging, which commenced in the Kaw Valley of
Kansas and the Orrick district of Missouri the forepart of
June, is progressing rapidly. Prices, which started at $1.60
per hundredweight the forepart of the season, have advanced
rapidly, with sales now ranging up to $2.50 and $2.6o. A year
ago the low price was 20 cents per hundredweight. The Kaw
Valley acreage is about two-thirds normal and the yield 40 to
50 per cent normal, and, although many potatoes are small,
the crop is reported as of good quality. Potatoes in Wyoming
are reported as in poor condition and the acreage reduced for
the first time in several years. The Colorado acreage was
reduced 17 per cent. Sweet potato prospects are below average
in all states.
Cotton has not been damaged seriously and is in bloom in
New Mexico. Oklahoma, Missouri, and New Mexico had
4,689,000 acres of cotton in cultivation on July I this year
and 3,695,000 acres last year. United States acreage is placed
at 40,798,000 acres this year compared to 36,542,000 acres in

THE ESTIMATED PRODUCTION AND ACREAGE OF CROPS REMAINING FOR HARVEST IN THE UNITED STATES AND THE SEVEN
STATES OF THIS DISTRICT ON THE BASIS OF JULY I CONDITIONS, WITH COMPARISONS, AS
REPORTED BY THE UNITED STATES DEPARTMENT OF AGRICULTURE
(In thousands of units, ooo omitted)
PR.ODUCTJON
AcREAGE FoR HARVEST
UNITED STATES
SEVEN STATES
SEVEN STATES
UNITED STATES
Indicated Harvested 5-Yr.Av.
Indicated Harvested 5-Yr.Av.
July I
Revised
July I
Revised
July 1, 1933
1932 1926-1930
July 1, 1933
1932
1926-1930
1933
1932
1933
193 2
495,681
726,283
861,168
135,050
202,618
314,318
13,530
17,983
44,879
55, 152
All wheat, b ~ - - - - 127,230
196,278
302,796
335,767
461,679
589,733
Winter wheat, bu .....................
12,675
17,4n
26,802
33,635
Spring wheat, b..__ _ __
7,820
6,340
11,522
159,914
264,6o4
271,435
855
572
18,077
21,517
Corn,b.....__ _ _ _ _ __
2,384,032 2,875,570 2,511,991
561,398
676,625
585,723
29,051
29,835
103,022
107,776
Oats, bu. ________
698,941 1,238,231 1,189,693
101,372
174,410
162,994
6,940
7,546
37,023
41,193
Barley, bu _ _ _ _ _ __
169,951
299,950
263,629
21,832
39,702
33,353
1,784
2,358
10,540
13,212
Rye, b....__ _ _ _ _ __
1,946
25,336
40,409
41,564
282
372
2,716
3,326
3,5°5
4,500
Flaxseed, b..___ _ _ __
9,185
11,787
20,011
185
346
387
35
56
1,755
2,081
Tame hay, ton..__ _ __
I0,172
10,878
12,091
66,047
69,794
72,678
8,6o4
8,010
54,8o6
52,974
Wild hay, tons...______
8,872
12,187
11,489
14,3°5
13,845
3,058
4,248
4,349
5,15°
5,179
24,219
25,965
23,819
5,587
6,375
7,089
3,475
3,472
12,761
12,501
Alfalfa hay, toris·-···············-1,799
1,995
25,877
25,991
34,248
3,025
Clover and timothy, tons ........
2,287
2,134
23,750
23,438
White potatoes, bu, _ __
28,521
35,391
40,166
306,423
357,679
355,438
372
412
3,223
3,371
61,1 S2
78,484
62,483
2,100
3,204
2,941
Sweet potatoes, bu ...................
34
38
813
926
I0,154
10,164
n,107
1,715
1,085
2,376
Dry beans, 100 lb. bags. ____...
554
418
1,615
1,386
Sugar beets, tons ______
9,682
9,070
7,718
4,140
3,16o
4,318
359
287
1,029
812
Tobacco, lb.,.__ _ _ __
1,244,637 1,015,512 1,4n,697
6,37o
7, 175
4,6 25
9
7
1,741
1,422
Apples, bu. ________
168,773
149,598
140,775
6,381
5,4o6
8,337
Peaches, b..___ _ _ _ __
2,39 1
45,113
42,443
56,571
94 1
1,735
Pears, b...,__ _ _ _ _ __
21,805
22,050
22,925
496
591
1,094

6

THE MONTHLY REVIEW

1932. ·•No official estimate of production has been made.
Government agents are now canvassing cotton farmers in
keeping with the Government's crop reduction program. The
cotton report of the United States Department of Agriculture,
released July 8, stated the Secretary of Agriculture has not
yet determined to take cotton acreage out of cultivation and,
that if acreage reduction is made, the amount thereof will be
announced in the future.
The hay crop will be small again this year. The acreage of
sugar beets and dry beans has been increased considerably.
Fruit prospects, with the exception of Missouri, are the poorest
in years. and the June drop of apples was extremely heavy.

Livestock
Marketings of cattle at the six principal markets of the
District were smaller in June than in May but larger than a
year ago. Omaha reported the June run as the third largest
of record for that market. Excessive heat, dry ranges and
pastures, and a shortage of stock water forced many unfinished
cattle to market. These cattle became difficult to move as
the corn belt was not assured a corn crop and the demand for
the grazing sections was virtually eliminated by dry weather.
Also feeding margins narrowed further as grain prices advanced
and livestock values declined. Arrivals of calves were 17.8
per cent lighter than one month and 4.4 per cent lighter than
one year earlier. June receipts of cattle were equal to 92.1
per cent, and of calves 80.4 per cent of the ten-year average,
with arrivals from January 1 to July 1 equal to 79.8 and 83.4
per cent of normal.
Hogs, including those shipped direct to packers' yards,
arrived in comparatively large numbers, with offerings containing a large percentage of unfinished hogs, resulting in
lightweight hogs selling at a considerable discount. The June
total, which exceeded the ten-year average, was 10.7 per cent
larger than for the preceding month and 34.4 per cent larger
than a year ago. Six months' receipts were 7 per cent smaller
than for the like period last year.
Arrivals of sheep and lambs at these markets declined 27.5
per cent as compared to May and 14.6 per cent as compared
to June, but exceeded the average June volume by 7 .6 per
cent. Receipts of horses and mules totaled 5,916 in June,
6,233 in May, and 1,906 in June, 1932.
The July 1 condition of western ranges is reported by the
Division of Crop and Livestock Estimates as the lowest for that
date in the eleven years the reports have been issued. Ranges
in western New Mexico are good but a serious drouth exists
in western Kansas, western Oklahoma, southeastern Colorado,
and northeastern New Mexico. Cattle are reported in fair to
good flesh but beginning to show the effects of the drouth,

Kansas City..............
Omaha..
St. Joseph-··········- ·- ·
Denver
Oklahoma CitY·-·······
Wichita .............·- ······

Cattle
93,929
129,914
3 1,99 2
18,172
24,875
14,506

with some forced shipments reported from the drier areas.
The condition of sheep is also the lowest for any July 1 of record. The lamb crop has been cut short by heavy losses of
lambs and old ewes.
PRICES: Hot weather in June worked against higher
meat prices, and all classes of livestock closed lower for the
month, with lambs the only class to sell higher than a year
ago. Eastern demand for dressed meat was dull the greater
part of the month. Cattle closed the month 25 cents to $1,
hogs 25 to 50 cents, and sheep 25 cents per hundredweight
lower. Demand for stocker and feeder cattle was seasonally
dull, and the excessive heat and drouth was a depressing influence on the market. Prices were weak to lower, especially
toward the close. The demand for feeder lambs was also
weak. The month's top for cattle at Kansas City was $6.80,
hogs $4.75, and lambs $8.10 per hundredweight. The 1932
June top for cattle was $8, hogs $4.70, and lambs $6.50. On
July 17 both hogs and lambs were selling higher than a year
ago, but cattle prices continued to lag although making a new
high for the year on that date. From January I to June 30
cattle have advanced 25 to 50 cents per hundredweight, lambs
$1.50, and hogs 54 per cent, or from an average price of $2.88
in December to $4.35 per hundredweight in June.
JUNE PIG SURVEY: The June I pig crop report of the
United States Department of Agriculture estimates an increase
of 3 per cent in the spring pig crop of 1933 over that of 1932,
and a prospective increase of 8 per cent in the number of sows
to farrow this fall compared to last. The increase in the spring
pig crop was attributed equally to an increase in the number
of sows farrowed and an increase in the number of pigs saved.
If estimates of the number of sows to farrow this fall materialize,
fall farrowings will be the largest since 1923 and 20 per cent
above the five-year average.
Estimates of the number of pigs saved and sows farrowed,
or to be farrowed, are shown for the United States and the
seven states of the District in the following table:
PIGS SAVED
Spring
1932
1933
386,000
274,000
Colorado.--·······
Kansas .............. 2,333,000 2,330,000
Missouri ............ 3,231,000 3,134,000
Nebraska.. ........ 4,631,000 4,406,000
New Mexico.__ .
42,000
52,000
769,000
Oklahoma.---···
799,ooo
Wyoming..........
43,000
57,000

Seven states...... n,353,000 n,134,000 1,987,000 1,966,000 1,251,000 1,154,000
United States._. 51,030,000 49,597,000 8,702,000 8,582,000 5,240,000 4,855,000

JUNE MOVEMENT OF LIVESTOCK IN THE TENTH DISTRICT
RECEIPTS
STOCKERS AND FEEDERS
Calves
Hogs
Sheep
Cattle
Calves
Hogs
Sheep
166,820
17,106 *361,541
23,874
3,243
23,797
5,774
11 9,273
2,222
268,695
9,882
13,010
S,053
4 27
80,682
6,514
162,347
830
964
4, 153
5,7°5
1,445
3,812
3,169
128,893
69,97o
4,825
700
53,021
14,619
5,663
62,351
3,019
13,109

313,388
40,524
June 193
52 3,396
977,9 25
883,uo
334,162
49,3o8
May 1933·--- -·· ........
7 21 ,577
281,232
727,696
612,599
June 193
42,375
2 51,977 4,94o,679 3,861,115
6 Months 1933··-······ 1,755,610
6 Months 1932.. _ ...... 1,790,400
222,942 5,314,417 4,488,163
*Includes 196,139 hogs shipped direct to packers' yards.

4 2,734
65,498
31,621
322,902
252,683

Sows FARROWED
Fall
Spring
Actual
Intended
1932
1932
1933
1933
50,000 71,000 37,000 45,000
405,000 401,000 323,000 288,000
544,000 518,000 460,000 438,000
833,000 825,000 294,000 245,000
10,000
8,000
7,000
5,000
139,000 131,000 128,000 125,000
10,000
6,000
8,000
4,000

5,945
n,348
4,496

55,no
3 2,314

9,66o
13,250
4,218
47, 13°
30,082

46,3 24
7i,857
29,0 57
321,302
290,368

PURCHASED FoR SLAUGHTER
Cattle
Calves
Hogs
Sheep
114,480
14,491 *343,554
53,458
105,744
4,626
249, 294
85,772
26,165
158,165
5,624
73, 289
10,090
1,864
8,716
54, 11 4
10,903
14,709
49,316
4,985
6,842
II,036
1,849
58,794
197,036
r90,6o4
171,613
1,012,932
1,026,149

324,168
913,237
33,439
800,035
418,152
33,900
30,779
554,859 356,831
170,216 4,410,683 2,167,647
170,998 4,381,SII 2,520,892

THE MONTHLY REVIEW

ANIMAL AND POULTRY PRODUCTS: Butterfat advanced 3 cents per pound and eggs 2 cents per dozen in June,
but poultry prices declined I to 2 cents per pound, establishing
a new low. Advances in wool and hides were more moderate
in June than in the preceding two months. Sales of Wyoming
wool averaged 21 cents per pound on June 15 compared to 19
cents on May 15 and 7 cents on June 15, 1932.
MEAT PACKING: Packers purchased more cattle and
hogs, including hogs shipped direct to packers' yards, and a
smaller number of calves and sheep in June at the six market
centers of the District than they did in May. June purchases
of cattle, calves, and hogs exceeded those of June, 1932, by
14.8, 8.6, and 64.6 per cent, respectively, but purchases of sheep
and lambs declined 9.2 per cent. Purchases of cattle and
calves for the half year were slightly smaller and those of hogs
slightly larger than during the first half of 1932. Sheep numbers declined 14 per cent. The June and six months' slaughter
of all classes except hogs fell short of the ten-year average.

Cold Storage Holdings
United States cold storage holdings of all commodities,
except lamb and mutton which normally increase, were substantially larger on July I than on June 1. The net intostorage movement of beef, pork, poultry, and miscellaneous
meats of 15.8, 13.8, 11.2, and 27.5 per cent, respectively, during
June was contrary to the normal seasonal tendency for inventories of these commodities to decline. The seasonal in-movement of lard, eggs, creamery butter, and cheese was somewhat
heavier than a year ago or the five-year average increase.
Holdings of lamb and mutton declined 2.3 per cent as against
a five-year average increase of 15 per cent.
July I holdings of all commodities were heavier than a year
ago and those of poultry were 4.8, lard 26.2, creamery butter
20.5, cased eggs 3.8, and frozen eggs 4.9 per cent in excess of
the five-year average for that date. Stocks of beef were 22.4,
pork 3.5, lamb and mutton 33.4, miscellaneous meats 10.9,
and cheese, all varieties combined, 0.3 per cent short of the
July I five-year average.
July I cold storage holdings in the United States, with comparisons, as reported by the Department of Agriculture:
*July I
*June I
July I
July I
1933
1932 5-Yr.Av.
1933
29,909
Beef, lbs.·---·····
35, 169
30,373
45,3 27
Pork, lbs .......
759,858 667,955 724,271 787,088
Lamb and mutton, lbs ....................._
1,801
1,010
1,843
2,705
Poultry, lbs
36,661
40,782
38,096
42,756
**Turkeys, lbs .......
6,450
7,301
7,809
7,285
Miscellaneous meats, lb
72,653
50,798
64,769
54,745
Lard, lbs .......
196,941 110,381 130,363 156,085
Eggs, cases
9,020
8,047
9,366
6,339
Eggs, frozen (case equivalent) ..........
2,947
2,410
2,871
2,809
Butter, creamery, lbs
84,269
106,405
88,335
34,555
Cheese, all varieties, lbs..................48,458
66,531
78,7o5
78,944
*Subject to revision.
**Included in Poultry.
(ooo omitted).

Lumber
Reports covering 156 retail lumber yards thoughout this
District showed June sales of lumber in board feet were 1.1
per cent larger than in May and 44.7 per cent larger than in
June last year. Dollar sales of all materials, although 12.1
per cent smaller than in May, were 20.9 per cent larger than
in June, 1932. Stocks of lumber increased slightly between
May 31 and June 30, but on the latter date they were 11.3
per cent lighter than one year earlier. Collections in June
amounted to 22.7 per cent of amounts outstanding at the close

7

of the previous month. This ratio is the same as reported for
May and somewhat better than that of 18.1 per cent reported
for June, 1932.
Percentage changes in the retail lumber trade in June, compared to May this year and June last year, are shown in the
following table:
Sales of lumber, board f e e L - - - - - - Sales of all materials, dollars ......- - - Stocks of lumber, board feeL-_ _ _ __
Outstandings, end of mont,1.-_ __ _

June 1933 Compared to
May 1933
June 1932
I.I
44•7
-12.1
I.I

-

0.1

According to reports to the National Lumber Manufacturers
Association, production and shipments of lumber in the United
States for the week ended July I were, with the exception of
the preceding week, the heaviest for any week since September,
1931, and 82 and 79 per cent, respectively, heavier than a year
ago. Orders received, although slightly less than for the preceding six weeks, were otherwise the heaviest since April,
1931, and the volume of unfilled orders on July I was the
largest since May, 1929, and 99 per cent above that of July 1,
1932.
Shipmen ts for the week were 20 per cent and orders received
30 per cent in excess of production. Production for the first
twenty-six weeks of the year was 5, shipments 4, and orders
20 per cent larger than in the first half of 1932. Shipments
exceeded production by 26 per cent and orders exceeded production by 40 per cent.

Building
Building act1V1ty in Tenth District c1t1es continues quiet
with operations confined largely to alterations and repairs.
The following table shows the number of permits issued in
June, by building departments of seventeen cities, and the
estimated cost of construction:
Albuquerque, N. M.
Cheyenne, Wyo.
Colorado Springs, Colo•. -...........
Denver, Colo.....
Joplin, Mo•..................................
Kan1as City, Kans.....................
Kansas City, Mo
Lincoln, Nebr
Oklahoma City, Okla. ______........
Omaha, Nebr...
Pueblo, Colo
Salina, Kans
Shawnee, Okla...
St. Joseph, Mo
Topeka, Kans.·--··
Tulsa, Okl
Wichita, Kans .......
Total 17 cities, Jun
Total 17 cities, May
Total 17 cities, 6 months·--·······

PERMITS
1933 1932
50
47
24
45
30
37
321
393
IO
6
28
33
126
103
32
47
81
68
80
71
31
45
II
13
3
9
27
30
36
53
89
49
48
43
1,123
1,-264

996
1,297

5,632

6,565

EsTIMATED CosT
1933
1932
$ 43,574
$ 16,681
8,810
20,96o
19,986
10,925
210,975
229,792
2,825
4,830
17,9I5
10 ,545
282,600
124,300
52,410
56,149
207,561
76,o75
101,729
278,229
10,625
15,110
4,800
3,815
3,650
440
28,270
21,275
26,060
22,5I3
91,056
31,145
2
16,968
5,565
$789,935
818,428
4,006,354

$1,28 8,228
1 ,275,556

7,023,184

Cement
Output of finished Portland cement at mills in the District
during June and the first six months of I 933 was approximately the same as that for the like month and six months
of 1932. June production exceeded shipments and month-end
stocks, although 6.2 per cent larger than a year ago, were
otherwise the lightest for tha.t date in recent years.
United States production for June and the half year was
somewhatJess than a year ago.

8 .

THE MONTHLY REVIEW

Tenth District and United States production of finished
Portland cement, as reported by the Bureau of Mines, in
thousands of barrels:
TENTH DISTRICT

UNITED STATES

Production Shipments
June 1933·-······· 718
701
May 1933.......... 648
771
June 1932.-....... 720
76 5
6 Months 1933 2,581
3,195
6 Months 1932 2,559
2,999

Stocks
1,780
1,761
1,676

Production Shipments Stocks
19,942
7,804
7,979
6,262
6,709
20,n7
7,921
9,264
24,043
27,668
27,927
34,156
34,304

Bituminous Coal
Production of soft coal at mines in this District declined
10.8 per cent in June, or about the usual seasonal rate. June
output, which is frequently the smallest for any month of the
year, was 8.5 per cent below that of 1932 and the lightest for
that month in recent years. Output for the six months' period
is estimated at 7,300,000 tons against 8,249,000 tons for the
first half of 1932.
Output of bituminous coal in this District and the United
States:
Colorado. __ ···········----Kansas .... ----····················
Missouri.. ..............................
New Mexico·-··-···························
Oklahom..___ _ _ _ _ __
Wyoming.............. _ _ _ __

•June 1933
Tons
188,000
q2,ooo
187,000
77,000

56,000
227,000

•May 1933
Tons
290,000
90,000
182,000
76,000
40,000
250,000

June 1932
Tons
209,000
92,000
236,000
78,000
43,000
246,000

Six states......................................
827,000
928,000
904,000
United States..·--···················-····
24,870,000
22,488,000
17,749,000
*Estimated from the weekly reports of the United States Bureau of Mines.

Petroleum
An estimated gain of 1,341,000 barrels in the gross production of crude oil in Oklahoma for June resulted in an increase
of 6.8 per cent for this District as compared to May. However, production in the United States dropped off over 100,000
barrels per day from that of May, reported by the Bureau of
Mines as the highest since October, 1929.
Compared to June, 1932., Tenth District production increased
11.7 per cent and United States production about 20 per cent.
Six months' production was 1.7 per cent larger for the District
and approximately 8 per cent larger for the United States than
a year ago.
The production figures for the United States and the five
oil producing states of the District follow:
•June 1933
Barrels
Oklahoma. __ . 14,630,000
Kansas .......... 3, 273,000
Wyoming......
894,000
Colorado·-··-·
73,000
New Mexico 1,080,000

May 1933
Barrels
13,289,000
3,3o7,ooo
906,000
84,000
1,098,000

June 1932 •6 Mos. 1933 6 Mos. 1932
Barrels
Barrels
Barrels
12,905,000 80,870,000 79,615,000
2,736,000 19,480,000 17,122,000
1,057,000
5,560,000
6,897,000
98,000
477,000
643,000
1,066,000
6,472,000
6,718,000

TotaL........... 19,950,000 18,684,000 17,862,000 112,859,000 IIo,995,000
u. s............... 78,483,000 84,747,ooo 64,835,000 428,872,000 397,63 2,000
•June estimated, American Petroleum Institute.

On June 17 mid-continent crude oil prices of 25 cents per
barrel, which had been in effect since the first week in May,
were re-established on a gravity basis of 20 cents per barrel
for oil testing below 25 degrees gravity, with a 2 cent differential for each additional degree gravity up to 52 cents for oil
testing 40 degrees and over. These quotations remained in
effect until July 6 and 7 when the numerous purchasing companies failed to agree and two separate price schedules were
posted, one of which was IO cents higher than the other, with
prices ranging from 61 cents to 85 cents per barrel. At one
time there were four sets of prices for the same grade of crude.
Prices of all refined products, notably refinery and natural
gasoline, advanced in June.
Mid-continent refinery operations have been stepped up
monthly this year and the estimated daily average run of crude
oil to refinery stills on July 1 was 25 per cent larger than a year
earlier, but otherwise the smallest for that date in recent years.
Field activity continues quiet with comparatively few wells
completed and rigs up and wells drilling at the close of June.

Zinc and Lead
Mines in the Tri-state district shipped 48 per cent more
zinc ore and 14.1 per cent more lead ore in the twenty-six
weeks ended July 1 this year than in the like period of 1932.
Shipments of zinc ore during the four weeks ended July I were
77 per cent and of lead ore 94.9 per cent larger than in the
preceding four weeks ended June 3, and 68.5 and 210.3 per
cent, respectively, heavier than in the four weeks' period
ended July 2., 1932..
The tonnage and value of zinc ore and lead ore shipments
from mines in Oklahoma, Kansas, and Missouri:
SHIPMENTS IN FOUR WEEKS
ZINC ORE

LEAD ORE

Oklahoma ·-·············---Kansas ........... _ _ _ _ _ __
Missouri ........................ _ _ __

Tons
13,814
4,9 25
3,100

Value
$414,420
147,75°
93,000

Tons
3,410
454
105

Value
$170,500
22,700
5,250

4 Weeks ended July 1, 193J·-·····
4 Weeks ended June 3, I 933·-·····
4 Weeks ended July 2, 1932.-.....

21,839
12 ,339
12 ,957

$655,170

3,969
2,036
1,279

$198,450
88,254
34,973

327,227
2 55,339

SHIPMENTS IN TWENTY-SIX WEEKS
ZINC ORE

LEAD ORE

Tons
Value
78,182 $1,656,809
39,4o5
Soo,437
4,883
129,691

Tons
II,888
3,292
670

Value
$476,158
124,184
25,16o

26 Weeks ended July 1, 1933·-····· 122,470 $2,586,937
26 Weeks ended July 2, 1932·--··· 82,776 1,435,175

15,850
13,897

$625,502

Oklahom...___ _ _ _ _ __
Kansas .. _ _ _ __
Missouri _ _ _ _ _ _ _ __

498,709

Prices of zinc ore and lead ore were steady during June at

$30 and $50 per ton, respectively, with smelters taking all
concentrates available at these quotations. Zinc ore advanced

1,5 and lead ore $2.50 per ton the first two weeks of July. The
1933 low price for zinc ore was $20 in February and that of
lead ore 'l,27.50 per ton the first two months of the year.

SUPPLEMENT To THE MoNTHLY REVIEW,

AuousT 1, 1933

Business Conditions in the United States
By the Federal Reserve Board
PUtCUT

:':0':r
-"''-----r--lN-0-US-TR-,--IA-LP
=-::-R-:-:
OD- U-:-:::CT-ION---r--""",'

'"°

130 t - - - - - + - - - - + - - - - + - - - - t - - + - - ~ 130

120

110

100
90

eo
70 r----+----+----+---i--+--,>----i

70

'° t-----+---t----'-----+-~+-"---j 60
so
so,.___,~_.__,=m,._...J_~-30----L-1-n1----'---"----'
19JZ
1933

Index number of industrial production, adjusted for seasonal variation. (1923-1925 average= 100.) Latest figure, June, 89.

ID t---+----t-----t---\-,---"'c,l""'l;;;.r---j
IO 1-----+----+------i---+-->,----+----t

401---+-- - + - - - - - t - - - - t - ~ . _ . , .......,...---'1
30

...__..,..,_....__,..,.-,-_.__~~-==-~~__.__--c==--'

Indexes of factory employment and payrolls,
without adjustment for seasonal variation.
(1923-1925 average=100.) Latest figures, June,
employment, 64.1; payrolls, 45.9.

PUl([IIT

160

120

110

100

100

80

ao
60

"O

10

Indexes based on three month moving averages of F. W. Dodge data tor 37 eastern states,
adjusted for seasonal variation.
(1923-1925
average-=100.)
Latest figures May, total 19,
residential 14.

Oat CC"T

1~0

110

110

•oo

100

'10

'10

00

eo

70

70

60

60

!>O

!>O

40
30

Indexes of the United States Bureau of
Labor Statistics (1926=100).
Latest figures,
June, farm products, 53.2; foods, 61.2; other
commodities, 68.9.

In June, as in the two preceding months, industrial activity increased rapidly and
in the first half of July there was some further advance. Factory employment and
payrolls showed a considerable increase.
Wholesale commodity prices rose rapidly
until the third week of July when prices of leading raw materials showed a sharp decline.
PRODUCTION AND EMPLOYMENT: Volume of industrial production, as
measured by the Board's seasonally adjusted index, advanced from 77 per cent of the
1923-1925 average in May to 89 per cent in June, as compared with 60 per cent in March.
Activity in the steel industry continued to increase during June and, according to trade
reports, during the first two weeks of July. In the third week of the month it showed
little change. Demand for steel from the railroads and the construction industry continued at a low level. Output of automobiles, which usually declines at this season,
increased in June and showed little change in July. Consumption of cotton by domestic
mills was larger in June than in any previous month and continued at a high rate during
the first half of July. At woolen mills and shoe factories activity increased further
in June to unusually high levels.
Working forces at factories increased substantially between May and June and the
Board's seasonally adjusted index of factory employment advanced from 61 per cent
of the 1923-1925 average to 65 per cent. Factory payrolls also increased by a reasonable amount to 46 per cent of the 1923-1925 averages.
Value of construction contracts awarded, as reported by the F. W. Dodge Corporation, showed an increase in May and June, contrary to the usual seasonal movement.
Department of Agriculture estimates as of July 1 indicated a wheat crop of about
500,000,000 bushels, 350,000,000 bushels below the average of 1926-1930, reflecting
chiefly adverse weather conditions. Feed crops have also been seriously damaged.
Cotton acreage on July 1 was estimated at about 41,000,000 acres, an increase of 4,000,000
acres over last year, but it is proposed as a part of the program of the agricultural adjustment administration to reduce the area by about 10,000,000 acres.
DISTRIBUTION: Freight traffic continued to increase during June, reflecting
in large part heavier shipments of coal, miscellaneous freight, and lumber products.
Distribution of commodities through department stores showed about the usual seasonal
decline in June.
WHOLESALE PRICES: Wholesale prices of commodities advanced from 64 per
cent of the 1926 average in the first week of June to 69 per cent in the middle of July,
according to the index of the Bureau of Labor Statistics. This marked upward movement reflected large increases in the prices of most basic raw materials, including grains,
cotton, hides, nonferrous metals, steel scrap, petroleum, and rubber. Most of these
commodities are traded in on organized exchanges and enter into world trade. The
prices of many manufactured products, particularly textiles, leather, and gasoline, also
advanced substantially. On July 19, 20, and 21, following rapid advances in the preceding period, prices of leading raw materials declined. sharply.
FOREIGN EXCHA GES: In the exchange market the value of the dollar in
terms of the French franc declined to 69 per cent of its gold parity on July 18 and then
advanced to 72 per cent on July 2I.
BANK CREDIT: During the four weeks following the enactment on June 16 of
the banking act of 1933, which prohibits the payment of interest on demand deposits,
net demand deposits of weekly reporting member banks in 90 cities declined by $500,000,000, reflecting the withdrawal of $300,000,000 in bankers' balances from banks
in New York City and elsewhere, and the transfer of funds from demand to time accounts. Time deposits increased by $260,000,000. The banks' holdings of United
States Government securities increased during the four weeks ending July 12, and there
was a further rapid growth in open market brokers' loans, while loans to customers
declined.
Return flow of currency amounted to $90,000,000 during the five weeks ending July
19. During the same period the Federal reserve banks purchased. $85,000,000 of United
States Government obligations and member banks reduced their indebtedness to
the reserve banks by f,90,000,000. The withdrawal of bankers' balances from New
York City reduced excess reserves of member banks in that city, while surplus reserves
of member banks outside New York increased substantially.
Money rates in the open market generally continued at low levels, although recently
slight increases have occurred in acceptance rates, time money against stock exchange
collateral, and yields on short term United States Government securities.