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THE MONTHLY REVIEW Of Agricultural, Industrial, Trade and Financial Conditions in the Tenth Federal Reserve District FEDERAL Vol. 20 RESERVE KANSAS BANK OF CITY, Mo., AuousT A GRICULTURAL conditions throughout the Tenth Federal Reserve District have undergone a complete change for the better since this time last year. Crop acreages are larger and yields of all crops are expected to exceed the extremely short harvest of 1934. Above average yields of oats, tame and wild hay, spring wheat, dry beans, and most varieties of fruit are anticipated. Owing to the heavy early acreage abandonment, occasioned by the drouth, the winter wheat crop, which is estimated at I 52,764,000 bushels, will be about 45 per cent short of the five-year, 1928 to 1932, average. Threshing returns from many sections are proving disappointing, losses attributable to wet weather and black stem rust reducing prospects materially since July I. Corn planting was delayed almost a month by wet weather but the recent warm days have favored growth and cultivation and the crop, although backward, promises a harvest of 308,726,000 bushels, which is six times the amount gathered last year but 35 per cent below normal. Supplies of finished cattle and hogs being scarce, prices have advanced rapidly since last fall to the highest levels in four or five years and, with ample feed supplies in prospect, the outlook is encouraging. The position of dairy products continues unfavorable, prices being low and feed costs comparatively high. Poultry prices are also low but egg prices have held up well throughout the spring season. Government rental and benefit payments to farmers in the District are expected to be somewhat larger this year than last. June witnessed a continuation of subnormal receipts of grain and live stock at Tenth District markets, a sharp reduction in the slaughter of meat animals, and a slight decline in flour milling. Grain and live stock prices weakened somewhat during the · month, with wheat and hogs showing pronounced strength late in July. Crude oil production declined slightly and prices were unchanged. Operations at numerous mines in the Tri-State district were resumed and zinc ore and lead ore shipments increased. Coal production expanded, the June output being the largest for the month in five years. Building activity, off slightly for the month, was substantially larger than a year ago. Business mortality continued low. Trade at both wholesale and retail held up better than is usual at this season, department store sales being II.2 per cent larger and wholesalers' sales, five representative lines combined, 2.2 per cent smaller than in June, 1934. Department store sales during the first six months this year were 4.6 per cent above and wholesalers' sales 4.9 per cent less than in the like period last year. Net demand deposits at member banks increased to all-time high levels and savings deposits in a selected list of banks continued to gain. 1, KANSAS CITY No. 8 1935 BUSINESS IN THE TENTH FEDERAL RESERVE DISTRICT Percentages of Increase, or Decrease (-), for June 1935 over M ay 1935 and June 1934 and for the first six months of 1935 over the like period in 1934. June 1935 6 Months 1935 compared to compared to Banking May 1935 June 1934 6 Months 1934 P ayments by check, 29 cities.................. 5.0 9.1 10.6 Federal Reserve Bank clearings.............. - 2.3 10.0 10.8 Business failures, number........................ 23.1 20.0 - 5.9 Business failures, li abilities............ ......... -45.1 - 76.9 -42.9 Loans, 51 member banks·--····················· - o.8 - 7.1 Investments, 51 member banks.............. - 2.2 16.2 Net demand deposits, 51 member banks 1.1 30.7 Time deposits, 51 member banks·-- -····· 0.1 - 5.6 Savings deposits, 45 selected banks·-····· 0.7 9.8 Savings accounts, 45 selected banks...... 0.1 3.0 Distribution - 2.2 Wholesalers' sales, 5 lines combined...... 1.1 -4.9 11.2 Retailers' sales, 32 department stores.... - 6.3 4.6 Lumber sales, 155 retail yards................ - 6.3 9-5 Life insurance, writte,.___ _ _ · - 4.4 - 9·5 Production 109.2 Building permits in 17 cities, value·-····· - 6.2 -3.0 Flour-- - -- - ···························· - 6.9 4.0 - 2.7 Crude petroleum·- ·············· · · · - - - - - 5.1 Soft coa.___ _ 19.0 4.4 4 2 ·9 Zinc ore (shipped) Tri-State district...... 204.2 -14.5 4.4 Lead ore (shipped) Tri-State district.... 73.6 -80.3 - 9.4 15.0 - 3.7 Cement·-····················································· 5.0 Grain receipts, 5 markets WheaL ......... _ _ _ _ __ -60.8 -84.6 5.3 4.1 18.4 53.8 Corn_·· ······················-································ - 6.5 5.3 Oats·---- · - - - - · · · ························· -5o.9 -62.1 -65.3 Rye. · - - - -- - - ·········-··-········· -62.5 Barley_ _ _ _ 16.3 -'70.7 -'75.6 Kafir........................................................... . 12.8 -63.6 -68.9 Live stock receipts, 6 markets Cattle ...................................... _ _ __ -21.2 -14.0 -35-2 9.2 -35.5 Calves·-······················································· --25.2 Hogs ................ _ _ _ _ _ __ -54.8 --22.6 -68.5 Sheep ........................... _. _ _ _ __ -18.4 - 4.5 1.4 Horses and mules ...... _ _ _ _ __ -31.0 14.6 4·9 Meat packing, 6 markets Cattle.......................................................... -12.9 -25.1 -38.3 -4i.7 - 1.5 Calves·-- ····· -- - - - - - - - -10.0 Hogs ........................................................... . -19.2 -68.8 -56.4 Sheep .......................................................... - 29.5 - 1,2 -5-4 Stocker and feeder shipments, 4 markets -10.0 31.2 Cattle ...............·-········································ -53.6 66.2 51.7 Calves·--···· · - ---················~··········· -61.9 -46.0 --20.9 37.3 Hogs.·--- - ··················-··-············ -18.6 20.8 -38.1 Sheep .....~. · - - - ································ Financial MEMBER BANK CONDITIONS: Weekly condition statements of fifty-one reporting member banks in selected cities of the District, for the four weeks' period ended July 10, reflect a further increase in net demand deposits and reductions in loans and discounts and total investment holdings. Net This Copy Released For Publication In Afternoon Newspaper July_29. 2 THE MONTHLY REVIEW demand deposits increased $5,788,000 in four weeks to an all-time peak of $549,921,000 as of July 10, on which date they were $129,276,000, or 30.7 per cent,higher than on July II, 1934. Time deposits, showing little change in four weeks, are 5.6 per cent smaller than a year ago. Loans and discounts, now at the lowest levels in recent years, declined o.8 per cent in four weeks, a recession of $1,790,000 in "all other" loans offsetting a slight gain in loans on securities. Investments in United States Government securities were reduced $12,396,000 and other securities $3,864,000 between June 12 and July Io but holdings of securities fully guaranteed, both as to principal and interest, by the United States Government increased $7,475,000 for the period. Changes in the principal items of the condition statements of the fifty-one banks in four weeks and fifty-two weeks are shown in the following table: Loans and investments-total.. Loans and discounts-total._ __ _ Sec'ured by stocks and bonds All other loans and discounts lnvestments-tota,___ __ U. S. securities direct.-.......... . Obligations fully guaranteed by the U.S. Government.. Other securities........ -.............. Reserve with F. R. bank............ Net demand deposits.................. Time deposits........... _ _ _ _ Government deposits_ _ _ July IO, 1935 June 12, 1935 July 11, 1934 $588,211,000 $598,588,000 $547,522,000 192,291,000 206,915,000 193,883,000 46,218,000 46,416,000 59,044,000 145,875,000 147,665,000 H7,871,ooo 340,607,000 395,920,000 404,705,000 231,441,000 227,242,000 243,837,000 44,799,000 119,680,000 115,475,000 549,921,000 156,571,000 7,478,000 37,324,000 123,544,000 116,813,000 544,133,000 156,424,000 113,365,000 83,733,000 420,645,000 165,804,000 15,545,000 25,310,000 FEDERAL RESERVE OPERATIONS: Gains of $2,977,591 in member banks' reserve deposits carrying them to an alltime peak, the total of'l,196,828,648 as of May 15, 1935, excepted, and of $2,222,595 in Federal reserve note circulation and $6,579,783 in total reserves were the principal changes in the weekly condition figures of this bank and branches in the four weeks ended July IO. Loans to member banks declined to a record low of only $64,543 on July Io. Commitments for industrial advances increased slightly but holdings of bills purchased in the open market, United States Government securities, and total bills and securities were virtually unchanged in four weeks. All items but bills discounted for member banks and bills purchased in the open market showed substantial increases as of July 10 this year over July I I last year. Principal resource and liability items of the Federal Reserve Bank of Kansas City and branches as shown by the weekly condition statements of the dates indicated: July 10, 1935 June 12, 1935 July 11, 1934 Total reserves.............................. 1,212,970,281 '/,206,390,498 $168,536,363 187,218 Bills discounted·--······················· 64,543 106,913 Bills purchased............................ 126,615 126,896 142,109 Industrial advances.................... 1,160,227 1,137,565 U.S. securities............................ 107,044,200 106,844,250 93,444,200 Total bills and securities............ 108,395,585 108,215,624 93,773,527 Total resources............................ 356,686,615 350,767,981 295,465,542 F. R. notes in circulation.......... 122,596,670 120,374,075 110,378,110 Member banks' reserve deposits 190,783,352 187,805,761 143,019,907 The discount rate of the Federal Reserve Bank of Kansas City, on all classes of paper and maturities, remains unchanged at 2 per cent. RESERVE BANK CLEARINGS: Clearings through the Federal Reserve Bank of Kansas City and branches at Omaha, Denver, and Oklahoma City amounted to $833,638,900 for the month of June and represented a decrease of 2..3 per cent as compared to May and an increase of 10 per cent over last June. The number of items handled during the month was 5,054,843, or 2.7 per cent below the May volume but 5.1 per cent above that of a year ago. Mid-year comparisons disclose that, whereas there was virtually no change in the number of items handled during the first six months this year as compared to the same period last year, the dollar volume increased 10.8 per cent. The following table shows the number of items handled and the amount: AMOUNT 1 935 June .................. 5,054,843 M.ay.................. 5, 1 94,0 74 31,085,341 Six months.-.... . 1934 4,808,092 4,780,073 31,094,435 1935 '/, 833,638,000 853,482,000 4,830,662,000 1934 '/, 757,828,000 704,98 I ,OOO 4,360,409,000 BANK DE:BITS: Banks in twenty-nine Tenth District cities charged $94-1,644,000 in checks to depos,i tors' accounts during the four weeks' period ended July 3, $44,828,00.0, or 5 per cent, more than in the preceding four weeks, and $78,918,000, or 9.1 per cent, more than in the corresponding four weeks last year. Debits to individual accounts for the first twenty-six weeks this year aggregated $5,745,895 1900 as against $5,195,032,000 during the like period in 1934. Only three reporting cities failed to show an increase for the half year. PAYMENTS BY CHECK (In thousands of dollars-ooo omitted) FouR WEEKS ENDED TwENTY-s1x WEEKS ENDED July 3, 1935 July 4, 1934 July 3, 1935 July 4, 1934 Albuquerque, N. M..... 1, 10,967 '/, 7,947 1, 60,303 '/, 48,701 Atchison, Kans.·---····· 3,562 3,014 19,805 16,540 Bartlesville, Okla......... 21,896 18,362 129,397 125,356 Casper, Wyo.·--··········· 4,352 3,604 25,766 21,834 Cheyenne, Wyo........... 6,239 5,371 38,964 31,069 Colorado Springs, Colo. 12,273 9,670 69,765 63,53 1 Denver, Colo............... 131,731 110,394 805,85'.2 710,350 Enid, Okla................... 8,412 12,491 49,008 50,156 Fremont, Nebr .._......... 2,550 1,889 14,323 13,006 Grand Junction, Colo. 1,987 1,600 13,377 10,407 Guthrie, Okla............... 1,423 1,044 9,322 8,014 Hutchinson, Kans....... 10,072 18,189 68,626 62,444 Independence, Kans._. 2,164 4,425 12,760 25,768 Joplin, Mo................... 7,437 6,586 47,234 42,306 Kansas City, Kans ... _ 10,919 9,847 68,302 59,580 Kansas City, Mo......... 260,890 241,122 1,626,574 1,480,068 Lawrence, Kans .........2,995 2,850 18,398 17,429 Lincoln, Nebr.............·.. 24,853 21,317 152,703 139,073 Muskogee, Okla........... 6,273 5,194 38,667 38,346 Oklahoma City, Okla. 89,181 76,834 479,277 430,439 Okmulgee, Okla........... 2,455 2,058 15,471 . 14,610 Omaha, Nebr............... 121,080 115,805 750,510 706,387 Pittsburg, Kans........... 2,967 2,843 20,643 18,425 Pueblo, Colo.·-············· 12,388 13,93q 79,232 79,301 Salina, Kans................. 6,885 8,974 46,018 43,063 St. Joseph, Mo............. 23,025 23,406 155,757 154,594 Topeka, Kans.·--········· 14,640 12,618 94,568 80,647 Tulsa, Okla.·-··············· 102,361 79,876 600,477 503,077 Wichita, Kans............. 35,667 41,460 234,796 200,511 Total 29 cities............ '/, 941,644 '/, 862,726 Total 270 cities, U. S. 33,398,892 29,107,928 '/, 5,745,895 '/, 5, 195,o32 197,920,531 184,287,223 SAVINGS: Total savings deposits reported by forty-five selected banks in leading cities of the District amounted to $124,324,714 on July I as against $123,501,772 on June I and $n 3,243,917 on July 1, 1934. This was the sixth consecutive monthly increase in deposits. The number of depositors totaled 402,987 on July I as compared with 402,525 one month earlier and 391,201 on the like date last year. BUSINESS FAILURES: There were eight more business defaults in the Tenth District in June, 1935, than in June, 1934, but, with this one exception, no June since 1920 has recorded fewer failures. Half-year defaults, numbering 238 this year against 253 last year, were, without exception, the smallest in fifteen years. The June, second quarter, and first half-year record of liabilities involved in Tenth District failures established new lows since I 920 for their respective periods of comparison. 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 AMOUNTS COLLECTED June 1935 Year 1935 June 30, 1935 STOCK TURNOVER June 30, 1935 · June 1935 compared to compared to compared to June Year compared to compared to June 1934 Year 1934 May31,1935 June 30, 1934 1935 1934 1935 1934 May31,1935 June30,1934 May 1935 June 1934 17.3 8.4 - 9.0 -20.2 .JO .20 1.70 I.JI - 6.9 6.1 6.5 0.8 12.9 7.5 - 9· 2 I.I .JI •29 1.74 1.66 J.2 9•5 - 1.J 3•5 - 2.7 - 1.9 - 7.3 - 6.2 .31 .30 2.06 2.09 - 2.5 - 4.4 - 6.8 Even 10.9 1.3 - 7.6 - 5.1 .35 .30 2.10 2.06 - 2.0 11.8 - 4.0 - 5.7 12.9 13.0 - 3.2 3.4 .24 .23 1.67 1.58 - 1.2 6.o 3.8 3.8 9.7 o.5 - 7. 2 1.6 · 23 · 21 1.43 1.45 - 2.6 1.7 - 1.7 - 4.1 Tota..__ _ _ .... 32 11.2 4.6 - 8.1 - 5.6 .29 .25 1.70 NOTE: Percentage of collections in June on open accounts May 31, all stores reporting 43.3. Numerically, June and first half-year failures in the United States were less than in any year since 1920, as was likewise true of indebtedness. June and mid-year failures as reported by Dun and Bradstreet, Incorporated: June 1935·-··························· May 1935·--························· June 1934-__ _ _ Six months 1935.................. Six months 1934.................. TENTH DISTRICT Number Liabilities 48 '/, 216,195 39 393,874 40 936,652 238 2,055,657 253 3,599,744 UNITED STATES Number Liabilities 961 '/, 20,463,097 1,027 I 5,669,627 1,033 23,868,293 6,268 I 10,280,841 151,793,760 6,577 Life Insurance Reports to the Life Insurance Sales Research Bureau indicate sales of new paid-for ordinary life insurance in the seven states, whose areas or parts thereof comprise the District, declined 4.4 per cent from May to June, 23.9 per cent from June, 1934, to June, 1935, and 9.5 per cent for the first half of the year 1935 as compared to the same period in 1934. All seven states reported losses for June, with New Mexico the only state to report an increase for the six months' period. The sales totals in thousands of dollars: Colorado.____ _............ Kansas ...................... Missouri .................... Nebraska .................. New Mexico·---······· Oklahoma·-- ············· Wyoming.................. Seven states·--········· United States.---····· .1 790 May 1935 4,286 5,086 15,396 5,148 647 5,126 724 '/, 34,813 490,268 $ 36,413 500,380 June 1935 'f, 4,384 4,686 14,641 4,048 637 5,627 t, June 1934 '/, 9,126 6,260 17,953 4,766 745 5,996 922 Six Months 1935 1934 'f, 26,132 'f, 30,808 30,878 34,158 109,888 95,894 26,952 27,955 4,420 4,238 34,017 33,874 4,722 4,35 1 $ 45,768 $ 222,501 $ 245,786 556,379 3,255,496 3, 24°,358 Trade RETAIL: Dollar sales of thirty-two department stores in the Tenth District declined by somewhat less than the usual seasonal amount from May to June and were 11.2 per cent larger than in June, I 934. Reflecting the lateness of the summer season and the postponement of purchases which are usually made in May, June sales, which ordinarily decline about 13 per cent, showed a loss of only 6.3 per cent, or less Stores Reporting Dry goods ...................... 6 Groceries........................ 4 Hardware·---················· 9 Furniture....................._ 3 Drugs .............................. 7 1.57 - 1.4 4.8 Collections same month last year 43.4. 0.5 o.l than any year since 1927. Reports indicate that the improved demand for seasonal merchandise, stimulated by sales promotions, extended well into July. Inventories declined 8.I per cent between May 31 and June 30 and on the latter d ate were 5.6 per cent smaller than one year earlier and the lowest for the season in many years. Collections on open accounts during June, down I point from May but the same as a year ago, averaged 43.3 per cent of amounts receivable at the close of the preceding month. Collections on installment accounts also declined for the month but were slightly better than in June, 1934, averaging 14.9 per cent of amounts receivable this year as against 14.2 per cent last year. According to preliminary estimates released by the Bureau of Foreign and Domestic Commerce, Department of Commerce, grocery chain store sales throughout the United States in June, 1935, were up 4 per cent and variety store sales were down less than one-half of one per cent as compared with June, 1934. Total sales of the former for the first six months of 1935 were about 4 per cent above and of the latter I per cent under those for the corresponding period of 1934. WHOLESALE: Wholesale trade also held up slightly better than is usual at this season, the June dollar volume of five representative lines combined increasing I.I per cent as compared to May but declining 2.2 per cent as compared to June last year. Sales of dry goods, groceries, and drugs were smaller in June than in either the preceding month this year or the corresponding month last year, whereas sales of hardware and furniture were larger in June than in May with hardware showing a slight decline as compared with June, 1934. Cumulative comparisons for the year to July I show sales of groceries were 0.3 and furniture 4.6 per cent larger and of dry goods 15.2, hardware 6.5, and drugs 2.3 per cent smaller in the first six months of 1935 than in the like period of the previous year. Implement sales are considerably larger than a year ago with reports of dealers pressed for deliveries frequent. Wholesalers··of dry goods, groceries, and hardware reduced their stocks during June but inventories of furniture and drugs were enlarged. Stocks of hardware and furniture were somewhat smaller and those of dry goods, groceries, and drugs larger on June 30 this year than on the like date last year. WHOLESALE TRADE IN THE TENTH FEDERAL RESERVE DISTRICT AMOUNTS COLLECTED SALES OuTSTANDINGS June 1935 compared to June 1935 compared to June 30, 1935 compared to May 1935 June 1934 May 1935 June 1934 May 31, 1935 June 30, 1934 ~ 8.o -10.7 - 1.3 - 2.9 - 7.7 - 4.3 - 0.9 - 0.9 4.1 -7.4 - 2.9 - 9.5 -16.3 9.0 - 1.6 4.1 - 5.6 - 3.4 10.8 - 2.7 23.3 - 0.3 9.5 59.9 0.2 - 6.2 - 2.4 - 3.0 -4.4 1.3 STOCKS June 30, 1935 compared to May 31, 1935 June 30, 1934 - 8.I 1.4 12.1 -12.4 - 1.0 -10.4 o.6 -19.2 12.4 13.6 THE MONTHLY REVIEW 4 Lumber According to reports received by this bank, June witnessed a decline in sales of lumber and other materials at I 55 retail yards in the District. Lumber sales were down 6.3 per cent and dollar sales of all materials declined I 5.9 per cent for the month. Sales of lumber were, however, 30.7 per cent and of all materials 35.6 per cent larger than in June, 1934, with lumber sales for the first six months this year 9.5 per cent above the same period last year. Inventories showed minor changes for the month and the twelve months. Collections during June, averaging 34.9 per cent of amounts receivable at the close of May, were not as good as in the preceding month but somewhat better than a year ago when the average was 31.4 per cent. Comparative percentage changes in retail lumber trade at 155 yards: Sales of lumber, board feet ...·--························ Sales of all materials, dollars ............................ Stocks of lumber, board fceL-......................... Outstandings, end of mont h.............................. J une 1935 compared to May 1935 J une 1934 -6.3 3o.7 35.6 - 1 5.9 o.8 - 2.7 13.1 2.5 Building Building departments in seventeen Tenth District c1t1es, reporting to this bank, issued 1,695 permits for new construction, alterations, and repairs estimated to cost $2,083,773 in June. This was I I I more permits than were issued in May this year and 592 more than were issued in June last year. Estimated construction costs, which declined 6.2 per cent for the month, exceeded the June, 1934,expenditures by $1,087,940, or 109.2 per cent. BUILDING PERMITS IN TENTH DISTRICT CITIES PERMITS ESTIMATED COST 1935 1934 1935 1934 $ 72,848 $ 134,710 Albuquerque, N. M.·--·······-······ 58 74 26 11 1 Cheyenne, Wyo... - .. 13,282 3,53 45 28 26,645 Color•do Springs, Colo ..--·-·-·· 29 14,~85 226 Denver, Colo... ---·· 363 215,1'35 425,351 II 5,600 1,900 Joplin, Mo·---- ··-··-··- ·············· 9 18,829 36 30 10,275 Kansas City, Kans·- ······-·········· 229 436,500 154,100 Kansas City, Mo·-·-··········-····333 Lincoln,' Nebr 148 96 36,537 7°,9 23 133 255,875 Oklahoma City, Okla·--····--50,164 79 Oma.ha, Nebr,_ 109 96 189,857 136,569 Pueblo, Colo•. _ 51 46 11,707 12,719 Salina, Kans 6 . 25,760 17 1,440 II 6 Shawnee, Oki 17,600 1,500 20 St. Joseph, Mo.. 19 12,125 37,6oo Topeka, Kan 100,560 64 20,365 37 62 Tulsa,Okl 178,268 162,579 49 Wichita, Kans ..... 203 17,848 96,319 49 Total 17 cities, Jun Total 17 cities, May Total 17 cities, 6 months._._ 1,695 1,584 8,134 1,103 1,384 6,104 $2,083,773 2,222,123 9,369,7 20 ' 995,833 1 ,7 1 5,935 6,332,169 Flour Production Southwestern mills, reporting weekly to the Northwestern Miller, were operated at 58.6 per cent of full-time capacity during June, the same rate as a year ago. Production of flour for the month totaled 1,756,061 barrels, or 6.9 per cent less than in May and 3 per cent less than in June, 1934. During the first six months of 1935 these mills reported an output of n,304,430 barrels of flour as compared with 10,975,108 barrels ground cluing the first six months of 1934. Production for the wheat year ended July I of 22,831,004 barrels exceeded that for the preceding wheat year by I ,439,225 barrels, or 6.7 per cent. Flour production at the principal milling centers of the District in June and the wheat year, with comparisons: Atchison................ Kansas CitY·---··· Omaha.................. Salina.................... Wichit Outside.................. June 1 935 lII,006 488,360 104,061 138,076 154,618 759,94o May 1935 128,922 497,088 113,628 154,93° 155,815 836,090 June Wheat Year Wheat Year 1934-1935 1933-1934 1934 112,415 1,373,469 1,344,938 496,936 6,022,659 5,765, 276 III,344 1,320,454 1,230,238 14 1,397 1,795,5 15 1,663,891 121,634 1,855,692 1,872,798 827,487 10,463,215 9,514,638 Total·--················· 1,756,061 1,886,473 1,8u,213 22,831,004 21,391,779 *United States.--. 4,773,545 5,957,434 5,059,077 62,276,574 62,768,191 *Represents about 60 per cent of the total output in the United States. Flour sales lagged during the greater part of June, buyers continuing a hand-ta-mouth purchasing policy awaiting crop developments. A few round and large lots were sold toward the close of the month as quotations were advanced sharply in line with wheat but a fair number of widely scattered small sales for immediate shipment accounted for the volume. Prices, except for clears which were weak and hard to sell, advanced 65 cents per barrel the latter half of June and sagged off 15 cents the first week of July. Millfeed prices worked constantly lower as improved pastures reduced demand, closing quotations for bran showing a loss of $4 and of shorts $5.50 per ton for the month. Grain Marketing The crop year just closed was one of extremely light receipts of all classes of grain but corn at the five principal markets of the District. The general level of prices, up sharply from the previous year and the highest in several years, was well maintained. Drouth curtailment of production accounted for the diminished supplies of small grains, the enlarged receipts of corn, as compared to the previous year notwithstanding the 1934 crop was the lightest in forty years, being occasioned by heavy shipments from Iowa on contract. Marketings of wheat were by far the smallest on records dating back to 1919, receipts for the wheat year at the five markets totaling 71,907,509 bushels compared to 94,598,050 bushels during the 1933-1934 wheat year and 195,000,000 bushels as the average of the past ten years. June marketings of all classes of grain were extremely light as compared to the ten-year average, receipts of wheat declining 70, corn 33, oats 75, rye 78, barley 88, and kafir 83 per cent. Corn was the only cereal to exceed the June, I 934, volume, increasing 53.8 per cent, whereas receipts of wheat were off 84.6 per cent, oats 6.5 per cent, and rye, barley, and kafir over 65 per cent. Reports indicate that although harvest, which is three to four weeks late, is in full swing and production above a year ago, new crop offerings of wheat, oats, rye, and barley are limited. Receipts of grain at five Tenth District markets: Hutchinson .. - .. Kansas City.__ Omaha.....·-··St. Joseph.---··· Wichita.-·--·-·· June 1935·--···May 1935·--····· June 1934•--·- ·· 6 Mos. 1935·-·· 6 Mos. 1934-_ Corn Wheat Bushels Bushels 922,050 1,547,200 2,212,500 420,000 613,813 258,000 48,000 9,100 856,500 3,987,563 3,786,364 25,849,650 18,338,706 46,8u,300 Oats Bushels Rye Bushels Barley Bushels 66,ooo 94,000 64,000 9,000 8,000 2,899,6oo 224,000 2,449,150 456,600 1,885,850 239,500 15,185,06o 2,979,100 14,591,450 2,829,000 Kafir Bushels 6,500 6o,200 1,300 9,000 24,000 25,900 92,800 244,800 9,300 8,000 38,100 80,650 275,550 70,6oo 62,6oo 227,200 357,6oo 981,100 Wheat and rye prices reached their peak for the crop year in September, corn, oats, and barley in December, and kafir in February. Wheat prices held up well until the latter part o THE MONTHLY REVIEW May then experienced a sharp break which extended into June, but June closing prices were only little below opening quotations. Prices of oats, rye, and barley followed the same general course as wheat but corn and kafir have been independently strong although now lower than at any time since last October. July corn has at times sold on a par with wheat for the first time this crop year. With crop developments the dominating influence, wheat prices have fluctuated widely the past three weeks advancing and declining as much as 5 cents per bushel in a day, or the limit. Prospective large crops of oats, rye, and barley having depressed prices to low levels, changes in recent weeks have been relatively small. All grains but corn and kafir are selling well under a year ago. Cash grain prices at Kansas City as of the dates indicated: No. ~-o. No. No. No. No. July 15 June 29 May 31 July 16 July 15 July 15 193 2 1935 1935 1935 1934 1933 1 dark wheat, bu ..... t, .89 $ .88½ $ .89 t, .97½ t,1.07½ t, .41.¼ 2 mixed corn, bu.___ .86 .84.½ .85½ .61¾ .59½ .31½ 2 white oats, bu._____ .35 .41½ .38 .47 •44½ .19 2 rye, bu.___________ .53 .59 .60 .77 .96 .33 2 barley, bu._______ .48 .54 .55 .6'.2 .53 .27 ½ 2 kafir, cwt.___________ 1.40 1.80 1.99 1.18 1.45 .57 Marketings of hay were extremely light in June, Kansas City reporting receipts the smallest of record. Prices were changed to a new crop basis during the month but most of the new crop offerings were heated and therefore discounted. Trading was very quiet. Average prices paid at Kansas City during June were: alfalfa, $8.36; prairie, $13.91; and tame hay, $12.50 per ton. Crops Crop estimates of the United States Department of Agriculture, based on July I conditions, forecast for this District larger yields of all crops than were harvested during the exceedingly poor crop year of 1934. Yields of spring wheat, oats, tame hay, wild hay, dry beans, and apples, peaches, and pears are expected to exceed the five-year, 1928-1932, average, final production of other crops, notably wheat, corn, and sugar beets, falling somewhat below the average. The same general returns are also forecast for the United States, barley, white potatoes, sweet potatoes, and sugar beets being added to the list of crops, yields of which promise to be above and peaches and pears below the average. Crop acreages remaining for 5 harvest in the District, with the exception of winter wheat, spring abandonment of which was unusually heavy, and of sugar beets, exceed the 1934 harvested acreage, the combined acreage increase for all crops being about 15 per cent, the same as for the United States. The 1935 production of all wheat in the United States is forecast at 731,045,000 bushels as compared with 496,929,000 bushels harvested in 1934 and a five-year average (1928 to 1932) production of 86o,570,ooo bushels. Winter wheat production for the District is forecast at 152,764,000 bushels, spring wheat at 13,664,000 bushels, and all wheat at 166,428,000 bushels. These estimates indicate increases over 1934 for the District of 12,093,000 bushels of winter wheat, 10,122,000 bushels of spring wheat, and 22,215,000 bushels of all wheat. Total wheat production for the District will be about 45 per cent short of the five-year average. Colorado and Kansas will have less winter wheat this year than last but indications point to larger crops in the other five states, Nebraska showing the greatest improvement. Last year's corn crop being almost a complete failure, this year's crop, estimated at 308,726,000 bushels for the District, is six times as large but 35 per cent short of the 1928 to 1932 average. The crop and its cultivation have made good progress but final yields will be determined by weather conditions between now and harvest. A majority of the acreage was planted about a month late and early planted fields became washed and weedy. The oats crop is unusually good. Hay prospects are above the average, first and second cuttings of alfalfa making heavy yields. The fruit outlook is much better than a year ago and above the average, the Colorado peach crop being exceptionally good and apples generally having a good set. Weather conditions during the latter part of June and the first part of July were generally favorable for Tenth District crops, haying, harvesting, and the planting of corn and grain sorghums, but by the third week of July the soil was becoming dry and hard and in need of rain. There has been very little abandonment of spring planted crops and conditions indicate a below average abandonment this year. Harvest of small grains is nearing completion and, although good yields are THE ESTIMATED PRODUCTION AND ACREAGE, HARVESTED OR REMAINING FOR HARVEST, OF CROPS IN THE UNITED STATES AND THE SEVEN STATES OF THIS DISTRICT, AS ESTIMATED BY THE UNITED STATES DEPARTMENT OF AGRICULTURE, JULY 1 (In thousands of units, ooo omitted) AcR.EAGE FoR. HAR.VEST Pa.oDUCTION UNITED STATES UNITED STATES SEVEN STATES SEVEN STATES Indicated Harvested 5-Yr.Av. Revised Indicated Harvested 5-Yr.Av. Revised July I July I 1934 1 934 1928-1932 1935 July 1, 1935 July 1, 1935 1934 1928-1932 1935 1934 861,000 52,226 All wheat, bu 16,069 185,269 161,695 731,000 16,963 42, 249 3.34,488 497,000 Winter wheat, bu. ____________ 618,186 32,968 171,46o 158,087 458,091 16,545 31,389 315,059 15,075 4°5,55 2 18'8,476 18,100 84,291 8,291 3,6o8 Spring wheat, b 418 235,651 13,809 9>4 29 994 Corn, bu, ____ 2,044,601 1,377,126 2,562,147 22,214 75,176 18,494 87,795 379,643 93,590 590,390 Oats, bu. ___ 1,266,243 30,172 178,840 525,889 1,217,646 5,200 204,771 62,765 39,53° 7,4°5 282,841 uS,.348 10,091 316,850 Barley, bu 40,383 34,846 1,741 12,957 7,095 999 38,655 16,045 1,326 4,282 1,942 53,141 Rye, bu 627 3,699 7,936 273 15,¢1 5,213 2,138 2&4 14,499 4o9 58 969 37 1 53 Flaxseed, bu.·-···············-·········· 52,269 69,591 51,828 53,010 u,696 6,405 II,259 Tame hay, ton 74,538 7,982 7,075 11,107 10,793 13,086 8,912 1,762 3,868 4,104 Wild hay, tons.... _ 4,888 4,096 4,759 23,668 19,042 6,4o6 7,261 11,482 13,198 28,939 Alfalfa hay, ton 3,681 3,070 3,900 30,501 1,816 15,960 Clover and timothy, tons ____ 20,629 1,031 25,656 20,454 2,645 1,760 1,723 16,26o 363,367 3,312 38,070 3,256 367,589 385,421 346 39,472 White potatoes, bu, .. - - -····37 1 Sweet potatoes, bu. ________ 63,841 2,808 67,400 1,656 762 65,55~ 30 2,575 31 757 Dry beans, 100 lb. bags________ II,858 1,399 10,369 268 2,884 818 663 2,290 13,119 2,047 8,118 2,549 8,472 7,481 4,052 3,oo6 Sugar beets, short tons........._. 263 847 334 945 1,192,626 1,045,66o 1,432,845 1,271 3,111 1,502 5,836 Tobacco, lb 4,57° 5 5 120,670 161,333 Apples, bu, .. ___ 7,220 170,132 5a496 9,257 Peaches, bu,.___ 56,451 1,558 1,163 51,870 45,665 3,718 10,861 13,146 1,267 23,490 Pears, b 990 9~ 6 THE MONTHLY REVIEW 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 Boa,ds of Agriculture, in Thousands of Units, ooo Omitted WINTER WHEAT SPRING WHEAT CORN OATS BARLEY POTATOES TAME fuy 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 1935 1935 1934 1934 1934 1935 1934 1935 1934 1935 1934 1935 1934 1935 1,834 3,760 5,670 2,016 20,683 3,368 5,075 2,280 7,215 3,024 13,175 5,700 2,047 1,164 Colorado ................ Kansas .......•............ 67,540 79,663 99 37 76,144 10,57'6 38,448 16,094 5,380 1,988 3,240 1,480 1,955 861 22,788 21,266 39 15 85,994 26,482 35,568 13,585 1,320 220 3,760 1,380 2,685 1,510 MissourL............... 40,460 15,008 6,264 830 163,628 21,363 82,708 8,568 17,112 2,700 II,700 3,450 2,938 1,421 Nebraska................ 700 561 312 150 3,718 1,088 700 3.45 222 120 490 490 322 ·283 New Mexico......... . 37,373 37,348 26,928 II,644 38,870 20,150 1,320 1,265 2,450 2,760 647 496 Oklahoma .............. Wyoming................ 765 481 1,425 56o 2,548 655 3,402 1,743 2,277 774 3,255 1,000 1,102 670 Seven states.____ .... Tenth District.--•··· United States........ 171 ,46o I 52,764 458,091 158,087 140,671 405,552 13,809 13,664 235,651 3,608 379,643 75,176 204,771 3,542 308,726 53,194 174,156 84,291 2,044,601 1,377,126 1,266,243 reported from some localities, threshing returns are spotted, with yields in some areas failing to fulfill earlier anticipations, wet weather and black and red rust having reduced yields materially since July 1. Corn planting is completed but grain sorghums and broomcorn are still being planted in some areas. Broomcorn harvest has commenced in southern Oklahoma and is about two weeks earlier than usual. Potato digging is well under way in the Kaw Valley of Kansas and the Orrick district of Missouri. The crop is short, due to flood damage, and yields and quality are somewhat spotted. Demand is moderate, with cash prices to growers ranging from 75 to 77¾ cents per hundredweight. Potatoes in the North Platte Valley and dry land districts of Nebraska are looking exceptionally good. Sugar beets are making good progress. The cotton acreage under cultivation on July 1 this year and last is estimated, respectively, as follows: Oklahoma, 2,737,000 and 2,943,000; New Mexico, IIo,ooo and 100,000; Missouri, 325,000 and 319,000; and the United States, 29,166,000 and 27,883,000 acres. The increase for the nation is largely accounted for by a more Ii beral acreage allowance by the Agricultural Adjustment Administration to producers who signed reduction contracts. The 1935 acreage is with one exception, 1934, the smallest since 1905. In Oklahoma, which is the only major producing state t9 report a reduced acreage, a material part of the originally planted acreage was washed out and many fields were replanted two and three times. The crop is progressing v~ry well, the condition ranging from poor in eastern Oklahoma to fair to good elsewhere. Fields are mostly clean. No official estimates of probable production will be made until August 8. The farm carryover of wheat, corn, and oats is much s,m aller than last year or normally. Stocks of wheat on farms in the seven states of the District as of July 1 were estimated at 16,063,000 bushels this year and 22,4II,ooo bushels last year; corn 16,361,000 and 106,806,000 bushels; oats 6,807,000 and 14,779,000 bushels. The shortage was general, all states reporting substantial declines. Far)Tl stocks of wheat in the United States were placed at 41,926,000, corn 202,459,000, and oats 70,492,000 bushels on July 1, 1935, as against 60,323,000, 474,370,000, and 107,577,000 bushels, respectively, so held on July 1, 1934. Under the Agricultural Adjustment Administration announcement of July 8, adjustment benefit payments of 33 cents a bushel will be made to wheat farmers this year instead of the 29 cent minimum paid last year. The first payment of 20 cents a bushel will be made as soon as contracts are checked and the final payment of 13 cents will be made after local administrative costs have been determined and deducted. 62,765 50,782 525,889 34,846 34,000 316,850 10,091 9,900 118,348 38,070 34,753 367,589 16,260 14,816 385,421 11,696 9,3°5 74,538 6,405 4,994 52,269 Total payments will amount to approximately $1 l 5,000,000 this year compared with $IIo,ooo,ooo last year. The 1935 payment is the last under the three year, 1933, 1934, and 1935, contract. The proposed new contract is to run for four years. First payments under the 1935 corn and hog contracts call for 15 cents a bushel on the average production of the retired acreage and $7.50 per head on IO p.er cent of the hog base, leaving 20 cents per bushel on corn and $7.50 per head on hogs, less administrative costs, to be paid on or about January 1, 1936. Final 1934 sugar beet adjustment payments will be made at the rate of 75 cents a ton and the initial 1935 payment will be 80 cents a ton. Total adjustment payments for 1934 amounted to $1.75 a ton and 1935 payments are yet to be determined by prices received by producers. The ginning tax on cotton has been fixed and announced by the Agricultural Adjustment Administration at 6 cents a pound. Live Stock The first six months of 1935 witnessed a rapid recovery in cattle values from the demoralizing conditions prevailing throughout the latter half of 1934; the reestablishment of 1930 hog prices, resulting in a more favorable corn-hog feeding ratio; and an unprecedented improvement in pastures, ranges, and feed prospects. Marketings of hogs were extremely light, falling 60 per cent below the ten-year average and establishing a low record for the six months' period at Tenth District markets. Receipts of cattle and sheep were moderately lower, being II and 9 per cent, respectively, below the average but marketings of calves were 23 per cent and of horses and mules 37 per cent above normal. June receipts of all classes of live stock, at the six principal markets of the District, were considerably lighter than in the preceding month and, excluding slight increases in offerings of sheep and lambs and horses and mules, smaller than in June, 1934. The month's receipts of cattle were the lightest for any month in seventeen years of record, of calves since June, 1933, and of sheep and lambs since February this year. The peak movement having passed, monthly receipts of hogs established a new low for the six markets in June. Receipts of horses and mules totaled 6,250 head in June, 9,063 head in May this year, and 5,959 head in June, 1934. PRICES: Cattle were mostly $2 to '$3 per hundredweight higher at the close of June than on December 31, 1934, June prices being 1,1 to $1. 50 below the year's best levels reached in April. Butcher hogs, also closing below the 1935 peak, were '$1.75 to $2 per hundredweight higher and stock pigs were $5 to $5.25 higher than six months earlier. Lamb prices fluctuated widely, initial and final prices for the period being about unchanged. 7 THE MONTHLY REVIEW Slack demand for meat, attributable in part to consumer resistance to prevailing retail costs, depressed all live stock prices in June. Cattle were down 50 cents to '1,2 per hundredweight, finished steers bearing the brunt of the downturn. New crop lambs were 25 to 50 cents, ewes 50 cents, and yearling sheep '$1 or more lower. Hog prices broke 50 cents to '1,1 in June but a sharp upturn carried top sales to the $10.50 mark at Kansas City on July 23, the highest since October, 1930. Live stock on western ranges, which have staged a remarkable comeback after the 1934 drouth and have a good supply of feed, are generally in good condition. Both the calf crop and the lamb crop are smaller than usual but as cows and ewes have received adequate feed, calves and lambs are making good gains. A large number of cattle have been restored to pastures in the severe drouth areas. Few cattle have been offered for sale although inquiry is quite liberal, there being a tendency to hold back shipments in anticipation of better prices. Lamb contracting is almost at a standstill. Shearing is practically completed and wool has sold freely at above early season prices but under a year ago, sales ranging from 18 to 24¼ cents per pound, the majority being in the neighborhood of 20 cents per pound. Ranges in southeastern Colorado, western Kansas, eastern New Mexico, and the Oklahoma and western Texas panhandle are dry and short and in need of moisture. Pastures in the Flint Hills of Kansas and the Osage country of Oklahoma are reported in excellent condition although somewhat weedy. Water supplies are sufficient but the pastures are in need of rain. Cattle have made rapid gains in recent weeks but as grass was late and the early growth washy, the general movement of these cattle to market is expected to be about a month later than usual. A few loads, mostly in stocker and feeder flesh, are now being offered. JU E I PIG SURVEY: Summarizing the results of its June l pig crop survey, the United States Department of Agriculture reports in part: "A decrease of 20 per cent in the spring pig crop of 1935 from the very small spring crop of 1934; a prospective increase of 19 per cent in the number of sows to farrow in the fall season of 1935 over the small farrowings in the fall of 1934; a decrease of 10 per cent in total farrowings in 1935 from the total of 1934; and a marked reduction in the number of hogs over six rr.onths old on June I this year from a year earlier,are shown by the June I report. In all of the principal hog states, production in 1935 will be far below the maximum allowed under the Cot;n-Hog Adjustment Program." These decreases, due largely to the 1934 drouth and an unfavorable corn-hog feeding ratio which prevailed until recently, fell most heavily in western and corn belt states, the 1935 spring pig crop in the seven Tenth District states declining 36.7 per cent as compared to the spring pig crop of 1934. Fall farrowings in the District will be increased 30.9 per cent, the indicated gains by states being: Kansas, 55; Nebraska, 50; Wyoming, 25; Missouri, 20; Oklahoma, 10; and Colorado, 5 Kansas City.............. Omaha ........................ St. Joseph .................. Denver._ ..................... Oklahoma City.......... Wichita ........... ·-········· Cattle 80,659 7o,947 17,565 18,833 3:2,6:21 I 8,:287 per cent. ew Mexico has a prospective loss of 5 per cent• The number of pigs saved and sows farrowed or to be farrowed, 1n thousands of head: Colorado .............. Kansas ................ Missouri .............. Nebraska ............ New Mexico..... _. Oklahoma..._....... Wyoming............ 33,858 72,9 29 37,619 386,075 :294,28:2 Sows. FARROWED Fall Spring 1935 1934 *1 935 1934 22 24 23 43 153 155 267 99 194 2 33 275 4o5 81 122 340 630 3 4 3 5 82 54 59 59 2 4 3 7 - - - - - - - --- - - - ---- - - -- Seven states.-..... 5,241 8,286 2,570 7,239 8 59 1,439 597 456 United States. __ . 30,402 37,8o7 15,522 29,668 5,021 6,473 3, 175 2,657 * umber indicated to farrow from breeding intentions reports. Meat Packing Operations at Tenth District meat packing plants, as reflected by packers' purchases of live stock at the six principal market centers, direct purchases included, were somewhat lighter in all departments in June than in either May this year or June last year and also during the first six months of 1935 as compared to the first six months of 1934. The half-year slaughter of cattle, 25.1 per cent below a year ago, was 17.6 per cent below the ten-year average, whereas that of calves, 1.5 per cent under 1934, was 21.5 per cent above the average. Hog slaughter which declined 19.2 per cent from May to June, 68.8 per cent from June, 1934, and 56.4 per cent for the six months' period was smaller in June and the first six months of 1935 than in any month or six 1 months' period of record, the June slaughter being 70 per cent and the half-year slaughter 60 per cent below normal. The slaughter of sheep and lambs, down 1.2 per cent as compared to June and 5.4 per cent for the half-year, fell 16.8 and 14.1 per cent, respectively, below the ten-year average for June and the six months' period. According to the Federally inspected slaughter report issued by the Department of Agriculture, national slaughter of all classes of live stock declined in June and, with the exception of sheep, up 12.9 per cent, was below a year ago. Compared to June, 1934, cattle slaughter declined 28.2 per cent, calf slaughter 27 per cent, and hog slaughter 51.4 per cent. Swine numbers were the smallest for any month since September, 1917, any June since 1895, and first half-year since 1897. The June slaughter of cattle and calves was the smallest for the month since 1932 and that of sheep the second s,mallest since 1930. Federally inspected slaughter of meat animals: June 193 5·-······················· May 1935·-······················· June 1934·-······················· Six months 1935 .............. Six months 1934 .............. JUNE MOVEME T OF LIVE STOCK IN THE RECEIPTS STOCKERS AND Calves Hogs Sheep Cattle Calves 19,943 20,460 *84,7o3 107,247 4,7 19 83,229 6,163 827 5,43 2 93,o74 6,700 66,024 207 1,950 49,:255 13,9 15 229,180 5,802 2,530 762 14,534 5,668 15,542 21,198 3,692 u,798 238,912 44,482 532,265 257,434 June I935·---············303,222 332,520 651,996 59,487 May 1935·---············· 68,962 817,005 368,724 525, 144 June 1934·---········-···· Six months 1935........ 1,871,989 364,805 2,185,542 3,5 17,839 Six months 1934........ Z, 175,73 2 334,057 4,836,233 3,683,891 *Includes 5:2,706 hogs shipped direct to packers' yards. PIGS SAVED Sprirtg Fall 1935 1934 1934 1933 2 59 241 123 127 1,616 1,581 562 959 1,123 3,096 1,763 2,438 2,016 3,496 43° 1,517 28 28 16 19 299 341 463 695 28 20 13 39 6,515 17,078 3,920 69,861 45,998 Cattle 669,253 735,.463 93 1,97° 4,414,782 4,880,463 TENTH DISTRICT FEEDERS Hogs Sheep 15,:294 2,130 6,906 1,371 1,385 1,439 1,168 4,8II 6,108 4,448 II,310 36,803 46,513 28,396 23,498 45,84:2 247,799 304,363 Calves 439, 134 508,030 601,332 :2,832,503 3,169,620 Hogs 1,828,279 2,172,109 3,763,455 13,792,009 23,:255,855 Sheep 1,420,679 1,584,1:25 1,258,628 8,343, 191 7,475, 23 1 PURCHASED FOR SLAUGHTER Sheep Hogs Calves Cattle 16,273 *78,647 41,08:2 79,9°9 81,910 61,792 48,886 4,605 63,838 6,400 45,878 14,906 1,816 10,506 27,171 11,341 12,469 3,642 9,536 :20, 274 20,631 10,904 3,562 9,526 146,015 167,547 236~486 983,5o3 1,312,783 :2:20,196 36,298 282,995 272,420 401,18 7 4o,343 62,:259 705,292 286,337 276,988 1,8o7,697 1,970,030 281,320 4,143,896 2,081,448 8 THE MONTHLY REVIEW Cold Storage Holdings Stocks of pork and lard being smaller on July I this year than for any like date since before the war, United States cold storage holdings of all meats and lard are at similar low levels despite the fact July I holdings of beef are the highest since 1930. Present stocks of all meats, Government holdings of drouth relief meat excluded, are 24.6 per cent and of lard 56. 5 per cent smaller than a year ago and 33 per cent and 43.2 per cent, respectively, below the July I five-year average. Net withdrawals of pork during June amounted to 58,190,000 pounds as against normal withdrawals of 8,719,000 pounds, and inventories of lard, which usually increase, declined 5,115,000 pounds. The out-of-storage movement of beef was also larger than usual and holdings of lamb and mutton and miscellaneous meats declined, contrary to seasonal tendencies. June witnessed an unusually heavy in-to-storage movement of butter, net accumulations amounting to 63,158,000 pounds as compared to 42,987,000 pounds a year ago and a five-year average of 55,895,000 pounds. Holdings of creamery butter now total 96,254,000 pounds, 26,106,000 pounds more than a year ago and are 4,956,000 pounds in excess of the fiveyear average. The in-movement of cheese was not quite as large as a year ago or as usual at this season. Egg holdings increased and poultry holdings declined seasonally for the month. The in-put of eggs was slightly larger than a year ago, with July I holdings of cased eggs 15.3 per cent below a year ago and 15.5 per cent below the five-year average. Holdings of poultry are 15.7 per cent larger than on July 1, 1934, and 14.7 per cent above the average. United States cold storage holdings as reported by the Bureau of Agricultural Economics: •July 1 1935 June I 1935 July 1 July I 1934 5-Yr.Av. Beef, lb!!______ 55,543 63,523 45,471 44,59 1 Pork, lbs ..·-··············-······················-· 445,223 503,413 628,425 713,461 Lamb and mutton, lbs....................... 2,374 2,818 1,450 2,354 Poultry, lbs_______ 46,967 48,274 40,609 40,957 ••Turkeys, lbs ................. ....................-13,836 14,258 8,385 6,698 Miscellaneous meats, lbs.____ 52,666 57,049 61,228 68,852 Lard, lbs ..·-··············-········--····-····84,871 89,986 195,135 149,526 Eggs, cases ............ _ _ _ _ _ _ 7,591 6,366 8,965 8,984 Eggs, frozen (case equivalent).·-··-·· 3,084 2,419 3,316 3, 1 3J Butter, creamery, l b _ _ _ _ _ 96,254 33,096 70,148 91,298 Cheese, all varieties, lbs·-·····-·······-75,280 56,767 96,96o 83,083 *Subject to revision. **Included in Poultry. (ooo omitted). NOTE: Meats held for the account of the Federal Emergency Relief Administration are not included in the above. On May I these holdings, available for relief distribution, included u5,224,187 pounds of beef, 7,977,402 pounds of veal, and 5,572,183 pounds of mutton. All pork obtained through the hog-purchase program has been disposed of. Petroleum Enlarged field activity, increased production, record domestic consumption of gasoline, and steady crude oil prices distinguished the first six months of 1935 in the petroleum industry. Despite enhanced production, stocks of crude petroleum in the United States were somewhat smaller on June I than one year earlier. The production of crude oil in this District during June, as estimated from the weekly reports of the American Petroleum Institute, was 22,680,000 barrels, a daily average of 756,000 barrels. This represents a decrease of 2 per cent in daily average production from the Bureau of Mines' figures for May and of 2.7 per cent from June a year ago. National production was slightly larger for the month and the year. Tenth District production for the first six months of 1935 is estimated at 135,680,000 barrels, 5,16o,ooo more than in the corresponding six months of 1934. The estimated production figures, for June and the first six months of 1935 and 1934, are shown in the following by states: *June 1935 Barrels Oklahoma.__. 15,423,000 Kansas.......... 4,409,000 Wyoming...... 1,142,000 Colorado.--··· 120,000 New Mexico 1,586,000 May 1935 Barrels 16,215,000 4,736,ooo 1,155,000 123,000 1,675,000 June 1934 *6 Mos. 1935 6 Mos. 1934 Barrels Barrels Barrels 16,509,000 91,885,000 92,844,000 4,101,000 26,939,000 22,993,000 1,183,000 6,452,000 6,069,000 88,ooo 778,000 523,000 1,418,000 9,626,000 8,091,000 TotaL........... 22,680,000 23,904,000 23,299,000 135,680,000 130,520,000 United States 80,764,000 82,454,000 80,040,000 474,611,000 448,680,000 *June estimated, American Petroleum Institute. In the mid-continent area crude ·oil prices rerµain steady at schedules posted almost two years ago which range frqm 76 cents to $1.08 per barrel per gravity basis. Prices of refined products, with the exception of kerosene, which was weak to lower, were steady to strong throughout June. Field activity, with completions in the District more numerous and the number of rigs up and wells drilling greater than at any time since 1930, continues to reflect the demand for oil and the desire for greater crude oil reserves. Although operations are widely scattered, with many new locations of a "wildcat" nature, no major discoveries have been reported but new pools in Kansas, New Mexico, and Oklahoma were opened or extended during the month. Bituminous Coal Reports of the United States Bureau of Mines reflect the June output of soft coal at mines in the Tenth District and the United States this year was somewhat larger than in either of the four preceding years. The June total for the six producing states of this District was 4.4 per cent larger than for May and 42..9 per cent larger than for June, 1934. Production for the calendar year to July I exceeded that for the like period last year by 1,471,000 tons or 19 per cent. Production by states in tons: *June 1 Colo ............... Kans. & Mo. N.M ............. Okla ............... Wyo ............... 935 268,000 429,000 104,000 58,000 36I,ooo *May 292,000 June 1934 191,000 355,000 315,000 99,000 41,000 382,000 72,000 32,000 244,000 1 935 Six Months 1934 • 1935 2,488,000 2,153,000 2,702,000 3,107,000 649,000 598,000 569,000 2,406,000 455,000 1,840,000 Six states...... I,220,000 1,169,000 8S4,ooo 9,219,000 7,7.48,000 30,264,000 26,790,000 25,877,000 189,09I,OOO I8z,308,ooo *May and June estimated from the weekly reports of the United States Bureau of Mines. u. s............... Cement June production of 987,000 barrels of finished Portland cement by mills in the Tenth District was the heaviest for any month since August, 1931, but shipments of 697,000 barrels were the lightest since March this year. Production was 5 per cent larger than in May and 15 per cent larger than in June, 1934, whereas shipments were 3.9 and 13.5 per cent, respectively, smaller. Stocks increased 290,000 barrels for the month to 2,367,000 barrels held at mills on June 30 this year, or 556,000 barrels more than twelve months earlier. Production, shipments, and stocks of Portland cement as reported by the United States Bureau of Mines, Department of Interior: UNITED STATES TENTH DISTRICT Production Shipments June 1935·-······· 987 697 May 1935,......... 940 725 June 1934·-······· 858 806 6 Months 1935 3,641 3,651 6 Months 1934 3,782 3,941 Stocks 2,367 2,077 1,8n Production Shipments Stocks 8,730 7,624 23,098 8,222 7,428 21,991 8,813 8,541 21,600 33,642 31,926 37,IIS 35,165 SUPPLEMENT To THE MONTHLY REVIEW, Zinc and Lead Resuming operations curtailed by the strike of mine, mill, and smelter workers called May 8, mines and tailing mills in the Tri-State district shipped 22,876 tons of zinc ore and 878 tons of lead ore during the four weeks' period ended June 29. Shipments, although considerably heavier than in the preceding four weeks, were substantially under a year ago, zinc ore deliveries declining 14.5 per cent and lead shipments falling off 80.3 per cent. Despite the cessation of activities in May .as a result of the strike, shipments of zinc ore for the first half of 1935 exceeded those of the first half of 1934 by 4.4 per cent but the lead ore tonnage showed a los.s of 9.4 per cent. Prices of both classes of ore averaging lower this year than last, the combined value of deliveries declined 7 per cent. ,u,c,NT 140 INDUSTRIAL PRODUCTION 130 130 ,_, l<t. 120 \ !10 1, 1935 9 Shipments and value of zinc ore and lead ore from mines in Oklahoma, Kansas, and Missouri: Zrnc ORE Tons Value 16,891 f, 464,414 4,449 123,002 1,536 41,942 Tons 593 247 38 Value f, 22,968 9,382 1,446 1935·-··· 22,876 f, 629,358 1935._ 7,521 195,546 1934-__ 26,749 703,630 1935·--· 161,591 4,227,965 1934--. 154,812 4,377,759 878 503 4,462 16,244 17,931 f, 33,796 18,108 189,788 567,232 780,991 Oklahoma. __ ···-························-······ Kansas .............·-····························Missouri............................................ 4 4 4 26 26 Weeks ended June 29, Weeks ended June 1, Weeks ended June 30, Weeks ended June 29, Weeks ended June 30, LEAD ORE Two 1,2 per ton advances in lead ore and one '1,2 per ton advance in zinc ore carried prices of those metals to f,40 and f,28 per ton, respectively, or the best levels of the year, in June. Zinc ore is now selling on the same basis as a year ago and lead ore is 1,2. 50 per ton higher. 1'£11 ClNT 140 120 AuousT 90 70 100 I\ I\ ,/\\) '\~ \.. 80 \ 60 V ,.. vI \ 90 " 80 70 193<? 1931 1932 1933 1934 19~ Index of industrial production, adjusted for seasonal variation. (1923-1925 average=100.) Latest figure: June, 86. Ml.LJO,I.S OF OOlLARS 600 MilUOfll C, OOLlARS 600 CONSTRUCTION CONTRACTS AWARDED 1929 1930 1931 1932 1933 1934 1935 P£RC(Ml PUl't[Nl 120 WHOLESALE PRICES 110 110 100 100 90 9C, 80 80 70 Tu 60 00 5<, 50 Fa, 40 PRODUCTION AND EMPLOYMENT: Daily average output at factories, according to the Federal Reserve Board's production index, declined by about the usual seasonal amount during June. Output of mines increased, and the Board's combined index of industrial production, which is adjusted for usual seasonal changes, advanced from 85 per cent of the 1923-1925 average in May to 86 per cent in June. Daily average output of automobiles and lumber increased in June, while activity at cotton mills, shoe factories, and meat packing establishments declined. Activity at steel mills declined seasonally during June, but, according to trade reports, increased after the first week of July. There were sharp increases in the production of anthracite and bituminous coal during June and output of crude petroleum was also larger than in May. Factory employment and payrolls decreased between the middle of May and the middle of June. More than seasonal declines in employment were reported by producers of automobiles, clothing, shoes, and cotton fabrics, and employment at lumber mills also decreased, while the number of workers at woolen mills increased. In most other manufacturing industries changes in employment from May to June were largely seasonal in character. Employment and payrolls at mines increased considerably. Three month moving averages of F. W. Dodge data for 37 eastern states, adjusted for seasonal variation. Latest figure based on data for April and May and estimate for June: total, II7.8; residential, 42.9; all other, 74.9. 120 Factory production declined seasonally in June, while output of mines increased. Employment and payrolls at factories showed more than seasonal declines. There was little change in the average level of wholesale prices, and a decrease in retail food prices. 60 50 50 1929 By the Federal Reserve Board 110 1""\ 100 Business Conditions in the United States 40 :.·- Daily average construction contracts awarded, according to reports of the F. W. Dodge Corporation, were larger in value in June and the first half of July than in May. Awards of residential building contracts were twice as large as a year ago, while contracts for public projects continued smaller than last year. The Department of Agriculture July 1 estimates forecast corn and wheat crops larger than a year ago, but smaller than the five-year average for 1928-1932. Acreage of cotton in cultivation on July 1 was reported as about 5 per cent larger than at the same time last year. DISTRIBUTION: Daily average loadings of freight on railroads increased during June, reflecting larger shipments of coal. Daily average value of department store sales showed little change from May to June, when a decline is usual, and the Board's seasonally adjusted index advanced from 76 per cent of the 1923-1925 average to 80 per cent. ~ 30 1929 1930 1931 1932 1933 1,;;4 i335 Indexes of the United States Bureau of Labor Statistics. (1926= 100.) By months, 1929 to 1931; by weeks, 1932 to date. Latest figure, July 20: farm products, 77.2; foods, 82.0; other commodities, 77.9. COMMODITY i PRICES: Wholesale prices of farm products and foods declined during June, while the prices of other commodities as a group showed little change. Retail prices of food, which have increased sharply in the two years ending last April, according to the index of the Bureau of Labor Statistics, declined somewhat in May and June. SUPPLEMENT To THE MoNTHLY REVIEW, IO l f\.LIONI IIUJOfllSOIDa..LMS • MEMBER BANK CREDIT 0, DCIIJ.MS • AuousT 1, 1935 BANK CREDIT: Member bank reserve balances with the Federal reserve banks and excess reserves showed declines for the four weeks ending July 17, reflecting in large measure an increase in the balance of the Treasury with the Federal reserve banks following a sale of Treasury notes. Total loans and investments of reporting banks in leading cities increased by '$260,000,000 during the five-week period ended July 17. Subcriptions by reporting banks to new security offerings by the Treasury exceeded retirement of bonds held by these banks, and consequently their holdings of direct obligations of the United States increased by '$200,000,000. Holdings of other securities increased by $125,000,000, while loans declined by $60,000,000. Government deposits with these banks were reduced by over 1,200,000,000, while other deposits, exclusive of interbank balances, showed an increase of a similar amount. Yields on Government securities declined slightly during this period, while other short-term, open-market money rates remained at low levels. 1 1932 1933 1934 Wednesday figures for reporting member banks in 91 leading cities. Latest figures arc for July 17.
@FedFRASER