The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
THE MONTHLY REVIEW Of Agricultural, Industrial, Trade and Financial Conditions in the Tenth Federal Reserve District FEDERAL Vol. 17 RESERVE KANSAS C1TY, BANK Mo., OF KANSAS CITY No. DECEMBER 1, 1932 12 O BUSINESS IN THE TENTH FEDERAL RESERVE DISTRICT CTOBER witnessed the most severe decline in grain Percentages of Increase, or Decrease (-), for October 1932 over September prices so far experienced for this year's crop. Wheat declined to an all-time low and corn to the lowest 1932 and October 1931 and for the first ten months of 1932 over the like period in 1931. levels since 1896. October 1932 10 Months 1932 Livestock values, with the exception of sheep and lambs Compared to Compared to Sept. 1932 Oct. 1931 10 Months 1931 · which closed st~ady, were also lower for the month, hogs Banking Payments by check, 29 cities .................. -3.0 -28.0 -24.2 closing only 20 cents per hundredweight above the thirty-five -2j.o Federal Reserve Bank clearings.............. -26.1 9·4 year low of last May, and beef steers the lowest for the season Business failures, number........................ - 15.6 12.6 -17.6 in over twenty years. Prices of dairy products and eggs showed Business failures, liabilities...................... -43.4 -20.4 49•5 Loans, 54 member bank - 1.0 -25.4 little change during the month, but the latter advanced rapidly Investments, 54 member banks .............. - C.I -0.4 the forepart of November. Net demand deposits, 54 member banks - 1.3 - 13.7 Crop prospects are little changed from one month ago with Time deposits, 54 member banks·--·-····· 0.3 - 5.0 the exception of white potatoes, which suffered further injury Savings deposits, 49 selected banks........ - 0.5 - 7.9 Savings accounts, 49 selected banks ...... - 0.1 - 2.3 as a result of early freezes in Colorado, Wyoming, and Nebraska. Winter wheat seedings in western areas continue backward, Distribution Wholesalers' sales, 5 lines combined ...... - 5.3 -22.8 - 1 5.5 due to a lack of moisture, with present prospects indicating Retailers' sales, 35 department stores.... - 1.7 -22.1 -19.2 that the eventual acreage seeded will not equal earlier plan ting Lumber sales, 161 retail yards ..........- .... - 0.7 -36.1 -3o.7 intentions. Additional moisture supplies are needed generally. Construction Building contracts awarded, value·---··· 13.2 -49.8 n5.3 Contrary to seasonal trends, department store sales declined Residential contracts awarded, value.... 21.5 -62.5 -44.7 in October as compared to September, but the decline was Building permits in 18 cities, value........ -34.6 -77-1 --'J3•I largely accounted for by the unusually favorable weather con- Production Flour - 8.8 4.0 -3-5 ditions prevailing throughout the earlier month. Sales as Crude petroleum............... -11 . 2 -u.o 1.9 compared to a year ago declined 19.2 percent. This decline Soft coaL ....... -13.2 31.0 - 1.5 although somewhat larger than that reported for September, Zinc ore (shipped) Tristate District...... -31.6 90.6 49.3 was otherwise the smallest recorded for any preceding month Lead ore (shipped) Tristate District...... -18.8 -18.5 3 1·3 Cemen -10.2 -38.8 -10.4 since March. Hardware was the only one of five reporting receipts, 5 markets wholesale lines to show an increase in sales for the month, Grain Whea -40.1 -25.1 -54.1 with wholesalers of dry goods reporting a slight increase as Corn .. -66.4 4.9 4-5 compared to October a year ago. -20.0 0.1 17.6 Oats·---- ···················· Ry -26.1 20.6 212.7 Flour and soft coal production increased seasonally and zinc Barley - 85.5 -5 1.9 --··---···----------------·-·- -48.2 ore shipments were larger for the month. The output of flour, Kafir 1 9•4 - 6.2 127.5 petroleum, bituminous coal, and cement was lighter than a Livestock receipts, 6 markets year ago, but shipments of zinc ore and lead ore were heavier. Cattle.. - 7.8 7.8 - 4.7 Calve -4.8 58.7 7-5 Further improvement in the number of business insolvencies Hogs .. -12.0 9.0 3.7 was noted. Liquidation at member banks continued. 2.0 Sheep.... - 9.2 -23.5 Member Bank Operations The combined statements of fifty-four reporting member Horses and mules ...................................... Meat packing, 6 markets Cattle.. Calves Hogs.. 5o.5 55.z 2. 1 1.7 -3.0 - 5.1 banks, in leading cities of the District, as of November 9 re20.1 11.5 -4.5 17•7 flect a slight decrease in the four weeks since October 12 in 20.7 -12.5 Sheep..................................... .. - 7.4 - 8.6 - 19.4 loans and discounts of all classifications, thus establishing new and feeder shipments, 4 markets low levels for recent years. Total loans and discounts held on Stocker -12. 1 -18.0 Cattl 7.4 -----------------·----·······November 9 this year were 25.4 percent smaller than reported Calv 89.2 15.1 9.4 November 10 last year, with loans secured by stocks and Hogs .. -30.1 -83.6 -53.o -41.0 -46.8 Sheep........ 49• 2 bonds declining 14.6 percent and "all other" loans 29.4 percent. Total investment holdings showed little change in four weeks or fifty-two weeks. A decrease of I 1.2 percent in inNet demand deposits continued to decline and on November vestments in other bonds, stocks, and securities since November 10, 1931, was practically counteracted by an increase of 9 were reported at $336,984,000 as compared to $390,404,000 10.8 percent in investments in United States Government on November 10 last year. Time deposits increased 0.3 percent in four weeks but declined 5 percent in fifty-two weeks. securities. Thia Copy Released For Publication In Afternoon Newspapers, November 19 2 THE MoITT"HLY REVIEW Principal resource and liability items of the fifty-four banks, as of November 9, are shown below with comparisons: Loans and investments-total... Loans and discounts-totaL-. .. Secured by stocks and bonds. All other loans and discounts. Investments-total_____ U. S. securitie"--- - - - · · · Other bonds, stks, and sec..... Reserve with F. R. bank............ Net demand deposits.................. Time deposits ...... _ _ _ _ _ Government deposits.................. Nov. 9, 1932 $515,182,000 251,383,000 77,876,000 173,507,000 263,799,000 144,146,000 119,653,000 43,263,000 336,984,000 181,224,000 6,963,000 Oct. 12, 1932 Nov. 10, 1931 $518,041,000 $601,696,000 253,944,000 336,921,000 78,208,000 91,181,000 175,736,000 245,740,000 264,097,000 264,775,000 144,448,000 130,095,000 119,649,000 134,680,000 40,883,000 45,967,000 341,489,000 390,404,000 180,745,000 190,823,000 7,380,000 2,024,000 Federal Reserve Bank Operations The Federal Reserve Bank of Kansas City and branches· held $16,550,506 of bills rediscounted for member banks at the close of business November 9, as compared to f,16,733,414 on Octa.her 12 and $35,012,804 on November IO, 1931. Holdings of bills purchased were $889,100, a slight reduction for the month and a reduction of $3~,187,502 from November 10 of the preceding year. No change of any consequence has been made since the forepart of July in this bank's holdings of United States Government sect;rities, but the November 9 total of $57,252,500 shows an increase of $37,737,900 over holdings as of November IO, 1931. Federal reserve note circulation declined 1.3 percent m four weeks but the total was 13.5 percent higher on November 9 than one year earlier. Member banks' reserve deposits, whic~ increased 4.1 percent in four weeks, decreased 10.5 percent m fifty-two weeks. Principal items contained in the weekly condition statements of this bank and branches:· Nov. 9, 1932 Oct. TZ, 1932 Nov. 10, 1931 Gold reserves·-····························· $ 84,016,532 $ 82,272,321 · i 64,342,489 Reserves other than gold............ 5,297,100 4,566,292 7,645,529 Total reserves .... ____ 89,313,632 86,838,613 71,988,018 Bills discounte,~---16,550,506 16,733,414 35,212,804 Bills purchased.·----···· 889,100 894,621 36,076,_6o2 U. S. securities............................ 57,252,500 57,252,100 19,514,6oo Total bills and securities............ 74,692,106 74,880,135 90,604,006 Total resources............................ 189,087,933 197,313,415 195,231,484 F. R. notes in circulation.......... 90,810,065 92,0'28,215 80,033,310 Member banks' reserve deposits 65,'240,394 62,697,436 · 72,915,385 The discount rate of the Federal Reserve Bank of Kansas City, on all classes of paper and all maturities, remained unchanged at 3½ percent. Comn1ercial Failures A decided improvement in Tenth District business mortality was evidenced by the October reports of R. G. Dun and Company. There were fewer defaults recorded for that month than in any month since June, 1931, and in any October since 1928. More impressive was the decline in the amount of liabilities involved which, amounting to only $839,541, was the smallest reported for any month since September, 1928, and for any October since 1920. Defaults in the United States were, September excepted, less numero:1s than for any month since last November, but were, exclusive of October, 1931, the largest for any like month in recent years. The amount of liabilities involved was exceeded in each of the past twelve months and by the October, 1930, and 1931 totals. Commercial failures in this District and the United States ·as reported by R. G. Dun and Company: TENTH DISTRICT October 1932______ September 1932·--··················· October 1931 Ten months 19Ji.................... Ten months 1931.................... Number 103 122 125 1,361 1,209 UNITED STATES Liabilities Number Liabilities 839,541 2,273 $ 52,869,974 2,182 56,127,634 1,484,370 1,055,207 .2,362 70,66o,436 31,459,246 27,280 810,502,747 21,045,707 . 23,332 6o2,436,440 $ Savings The amount of savings deposits reported by a selected list of banks in leading cities of the District, which increased slightly in each of the two preceding months, · declined on·ehalf of one percent in October, and on November I were percent smaller than on the like date last year. There was practically no change during the month in the number pf savings accounts although the month-end total was 2.3 percent below that reported one year earlier. Savings deposits and savings accounts as reported by fortynine banks in leading cities of the Tenth District: 7.9 Savings Accounts November 1, 193.________ 422,179 October 1, 193 422,556 November I, 1931 432,283 Savings Deposits $115,236,338 · 115,866,332 . 12s,132,969 Bank Debits · Banks in twenty-nine leading cities of this District ·reported debits to individual accounts, for the four weeks' period ended November 2, aggregating $693,941,000 as against $715,25i,ooo in the precedi,-ig four weeks and $915,114,000 in the corresponding four weeks last year. Cumulative figures for . the year to November _2 show a decline of 28 percent as compared to the first forty-four weeks of I 93 I. Payments by check in 263 cities in the United States in the four and forty-four weeks ended November 2 this year declined 26.2 percent and 33.1 percent as compared to the corresponding four and forty-four weeks last year. . · . PAYMENTS BY CHECK Albuquerque, N. M..................... 'f, Atchison, Kans _ _ _ _ __ Bartlesville, Okla _ _ _ __ Casper; Wyo ...·-···············,············ · Cheyenne, Wyo ........................... Colorado Springs, Colo .............. . Denver, Colo.............................. . Enid, Okla ................................... Fremont, Nebr.·- ························· Grand Junction, Colo .....~.......... . Guthrie, Okla ................:.............. Hutchinson, Kans ...................... . Independence, Kans .................. . Joplin, 1\-fo•.•...•.•..•......•...............• Kansas City, Kans ..................... Kansas City, Mo ........................ . Lawrence, Kans _ _ _ __ Linco!n, Nebr.·-··························· Muskogee, Okla. _ _ __ Oklahoma City, Okla................. Okmulgee, Okla. _ _ _ __ Omaha, Nebr•.. _ _ _ _ _ Pittsburg, Kans. _ _ _ __ Pueblo, Colo _ _ __ Salina, Kans _ _ _...;._ __ St. Joseph, Mo ...·-······················· Topeka, Kans .. ______ Tulsa, Okla.·-······························· Wichita, Kans..... ........................ Total Total U. S. U. S. 29 29 263 263 cities, 4 cities, 44 cities, 4 cities, 44 FouR WEEKS ENDED Nov.2, 1932 Nov.4, 1931 6,470,000 $ 8,340,000 2,398,000 3,371,000 20,970,000 I 2,48 I ,ooo. Percent Change -22.4 -;28~9 68.o ·-26.0 3,959,000 5,349,000 5,o97,ooo 8,750,000 91,117,000 6,681,000 1,694,000 1,730,000 1,481,000 7,921,000 3, 190,000 6,433,000 12,479,000 II9,881,ooo 10,028,000 2,665,000 2,298,000 ~o.8 -29;9 1,505,000 -:- . 1.6 11,104,000 4,333,000 6,627,000 . -28.7 -26.4 -13.2 -28.0 . ---24.7 5,751,000 9,220,000 204,403,000 .2,799,000 17,936,000 b,755,000 52,632,000 1,857,000 97, 192,000 2,721,000 8,245,000 4,834,000 17,676,000 9,346,000 64;979,000 ~b,137,000 12,8II,OOO 271,399,000 ·3,9 11 ,000 25,036,000 7,152,000 -24.0 -33~4 -36:4 -24.7 -18.4 ~8.4 .- 5;9 69,675,000 -24;5 ~,66$,ooo 143,575,000 . 3,778,000 -30.4 ~3 2 .3 --28.0 14,348,000 ~4i.5 7,878,000 28,437,000 12,484,000 . t>7,382,ooo · 37,686,000 -38.6 -:37.8 '-?.5.1 - 3;6 ~30.6 weeks .......... $ 693,941,000 $ 915,114,000 -24.-2 weeks.......... 8,173,461,000 · 11,347,131,000 · · · ~8.o weeks.·......... . 24,434,796,000 33,105,6o2,ooo ---26.2 weeks .........: 299,873,790,000 -448,167,274,000 · --:;-33:1 Federal Reserve Bank Check CollectionsThis bank and branches at Omaha, Denver, and .Oklahoma City handled 8.6 percent more checks for collections during October than in September, and the value represented showed an increase of 9.4 percent. Collections in October and the first ten months this year were, however, decidedly smaller both as to numbers and dollar amounts than recorded for October and the first ten months of 1931. THE MONTHLY REVIEW .1 RETAIL TRADE AT 35 DEPARTMENT STORES IN THE TENTH FEDERAL RESERVE DISTRICT SALES . STOCKS (RETAIL) ACCOUNTS RECEIVABLE COLLECTIONS Stores Oct. 1932 IO Months 1932 Oct. 31, 1932 STOCK TURNOVER Oct. 31, 1932 Oct. 1932 Report- compared to compared to compared to October 10 Months compared to compared to ing Oct. 1931 10 Months 1931 Sept.30,1932 Oct. 31,1931 1932 1931 1932 1931 Sept.30,1932 Oct.31,1931 Sept. 1932 Oct. 1931 Kansas City...... _ 4 -18.5 --25.0 6.5 -18.9 .19 .19 1.63 1.93 2.5 - 8.8 32.9 -14.2 Denver_ _ _ 5 --23.9 --20.7 5.9 --25.4 .27 .26 2.27 2.39 - 2.1 -14.2 24.6 -19.7 Oklahoma City._. 3 -12..6 --21.3 3.8 -30.6 .34 .26 2.42 2.38 13.5 - 6.8 43.2 -10.6 Topeka.-............. J --22.6 --21.2 7.6 -22.7 .25 .26 2.05 1.96 4.7 --22.0 25.6 --20.3 Tulsa.. -................ 3 - 5.6 -12.8 12.0 --26.2 .40 .30 3.74 3.21 12..7 - 6.5 23.1 - 15.3 Wichita.·-············ J - 17.8 --20.0 5.7 -18.5 .23 .23 o.8 - 18.6 20.7 - 11.3 ~ther cities .......... _14 --21.0 -24.1 5.9 --22.1 .24 .23 2.14 2.24 2.3 - 12.2 23.4 -2.2..6 TotaL--··············· 35 -19.2 --22.1 6.2 -23.1 .25 .23 2.10 2.24 2.8 -12.2 27.5 NOTE: Percentage of collections in October on accounts September 30, all stores reporting 35.0. Collections same month last year 37.5. Check collection . through the Federal Reserve Bank o Kansas City and branches: October·---······· September........ Ten months ..... . ITEMS 1932 1931 4,o97,o6o 5,370,096 0 5,153,122 3,774, 73 43, 259,048 54, 14°,474 AMOUNT 1932 1931 $ 549,265,000 $ 712.,979,000 502,029,000 677,683,000 5,308,721,000 7,179,152,000 Trade -18.3 8.4; furniture, 32.3; and drugs, 16.0 percent. Collections remain slow although wholesalers of dry goods, hardware, and furniture reported some improvement as com pared to the preceding month. Building Taking the Tenth District as a whole, there was some improvement in building operations in October, the F. W. Dodge Corporation reporting an increase over September of 13.2 percent in the value of total building contracts awarded and an increase of 21.5 percent in residential construction. The larger centers of population, however, did not share in this increase as judged from the reports received from the building departments of eighteen cities. These reports showed reductions for the month of 7.8 percent in the number of permits issued and of 34.6 percent in the estimated construction costs. RETAIL: A consolidation of the reports of thirty-five department stores in Tenth District c1t1es shows October sales in dollar amounts were 1.7 percent smaller than in September. Ordinarily October sales exceed September sales by approximately 7.5 percent, but this year September weather conditions were more conducive than usual to the early purchase of fall goods, resulting in a part of the September volume BUILDING PERMITS IN TENTH DISTRICT CITIES being acquired at the expense of the following month. October P ERMITS ESTIMATED CosT sales were 19.2 percent smaller than a year ago as compared 1932 1931 1932 1931 to decreases of 11.2 percent reported for September, 24 percent Albuquerque, N. M.·---············· 25,6o7 $ 58 $ 41,853 49 28 1 5,655 17 for August, and 29.7 percent for July. Decreases as com- Cheyenne, Wyo......................._.. 34,900 Colorado Springs, Colo .._........... 13,810 44 37 85,753 pared to a year ago have been reported every month this year, Denver, Colo ............................... 322 490 730,820 294,557 with the cumulative total for ten months averaging 22.1 per-· Hutchinson, Kans ....................... 28 12.,610 23 22,125 cent less than for the first ten months of 1931. Joplin, Mo ................................... 12 JO 21,630 5,500 28 76 15,050 28,405 · The ·enlargement of inventories during October was in about Kansas City, Kans ... .................. Ka~sa_s City, Mo ......................... 100 184 108,400 297,200 normal proportions, but stocks of merchandise on hand October Lincoln, Nebr 41,981 51 6o,445 47 31 were 23.1 percent lighter than one year ago. Oklahoma City, Okla ................. 104 71,438 79 383,475 Collections improved somewhat during the month, amount- Omaha, Nebr... 63,6o8 71 90 158,052 22 6o 4,875 93,080 ing to 35 percent of amounts outstanding on September 30 Pueblo, Colo .._............................. Kans.._... 8,825 13 6,755 7 as compared to 30.4 percent reported for September this year Salina, Shawnee, Okla... 8 1,250 4,825 3 and 37.5 percent for October, 1931. 19 48 6,195 24,040 St. Joseph, Mo.·--······················· WHOLESALE: Dollar sales of each of the five reporting wholesale lines, except hardware which increased by somewhat less than the usual seasonal amount, declined in October. Under normal conditions, wholesalers of dry goods are the only ones to show a smaller volume of business for October than for September. Compared to October, 1931, the only increase noted was that of 0.5 percent in the sale of dry goods, whereas, sales of groceries declined 23.7; hardware, 18.4; furniture, 27.7; and drugs, 14.7 percent. Inventory changes during the month were slight, but, as compared to October 31, 1931, the various lines reported the following decreases: dry goods, 4.0; groceries, 26.1; hardware, Reporting Stores Dry goods·-·············'····· 6 Groceries ........................ 5 9 :::ii:::.~.~=-::::::::::::::::: 5 Drugs 6 Topeka, Kans.·---······················· Tulsa, Okla.·-······························· Wichita, Kans ............................. 37 56 58 10,605 17,169 37,8 12. 975,655 754,947 11,500,439 $ 3,295,852 46 149 106 Total 18 cities, October·-··········· 1,003 1,597 Ten months _ _ _ _ ·············- 10,698 15,541 $ 189,094 137,745 42,677,338 The Dodge report also showed an increase over October last year of II 5.3 percent in total awards, but a decrease of 44.7 percent in residential awards, whereas, the reporting cities issued 37.2 percent fewer permits with a cash outlay equal to about one-fourth that reported for October, 1931. Total awards were, however, equal to but 70 percent and residential awards but 19 percent of the five-year (1926-31) Octa ber average. WHOLESALE T RADE IN THE TE TH FEDERAL RESERVE DISTRICT SALES OuTSTANDINGS COLLECTIONS Oct. 1932 compared to Oct. 31, 1932 compared to Oct. 1932 compared to Sept. 1932 Oct. 1931 Sept. 30, 1932 Oct. 31, 1931 Sept. 1932 Oct. 1931 -10.6 0.5 - 5.9 3.1 26.2 - 5.1 -II.9 -23.7 - 2.7 -12.5 -4.3 -15-3 -18.4 -0.3 8.6 7.3 18.8 -19.2 -14.4 -4.0 --27.7 -23.6 -30.6 5.1 1 __;11.0 -4.2 o.6 - 4.7 - 2.8 -14.0 STOCKS Oct. 31, 1932 compared to Sept.30,1932 Oct. 31, 1931 -4.0 5.3 I.I --26.1 -0.3 - 8.4 0.4 -32.3 -16.0 2.3 4 THE MONTHLY REVIEW The F. W. Dodge report of total building and residential contracts awarded in this District and the United States is shown in the following table: TOTAL BUILDING CONTRACTS AWARDED TENTH D1sTR.ICT October·--········· September........ Ten months...... 1931 $10,380,313 9,166,418 61,650,036 UNITED STATES 1931 1931 1931 ' 4,8:21,421 ' 107,473,900 ' 141,094,100 9,103,851 117,526,700 151,109,700 124,851,894 1,164,837,100 1,811,534,100 RESIDENTIAL CONTRACTS AWARDED October·---·····September........ Ten months...... 1931 ' 1,440,018 ' 1,465,504 10,456,581 1931 11,855,6oo ' 11,803,900 147,865,100 1931 6o,540,100 54,551,800 729,934,800 Lumber Sales of lumber at retail, as indicated by the reports of 161 retail yards in this District, showed hut slight change in October as compared to September, but were 30.7 percent short of the October, 1931, totals. Dollar sales of all materials showed a 3.3 percent improvement for the month but declined approximately one-third as compared to the like month last year. Yards reported stocks as of October 31 as 2.1 percent smaller than one month earlier and 18.5 percent smaller than one year earlier. Collections improved slightly during the month, amounting to 23.1 percent of amounts outstanding on September 30 as against 21.4 percent reported for September, and 28.6 percent reported for October, 1931. October retail lumber business is herewith compared to that for September this year and October last year in percentages of increase or decrease: Sales of lumber, board feet........ _ _ _ _ Sales of all materials, dollars............................ Stocks of lumber, board fee...______ Outstandings, end of mont,.______ Atchison ................ Kansas City..•-··········· Omaha .......... Salina............. St. Joseph Wichit -------------·······-···--·--Outsid Oct. 1931 Barrels 137,815 612,528 u3,634 178,000 61,442 134,153 818,886 Sept. 1931 Barrels 136,577 6o3,823 u7,148 186,053 42,058 105,6o1 782,441 Total southwest mill United State 1,156,458 6,165,944 1,073,701 5,902,958 UNITED STATES TENTH DISTIUCT 1931 ' 796,393 655,461 7,671,978 only for immediate or near by needs. Several round lots were booked during the month but the majority of sales were small. Shipping directions ranged from fair to poor. Low grain prices .and meager funds have forced consumers to depend more on home grown feeds which has resulted in an extremely light demand for millfeeds even at the low prevailing prices. Flour production in this District and the United States as indicated by the weekly reports of mills to the Northwestern Miller: October 1931 Compared to September 1931 October 1931 - 0.7 -30.7 - 3.3 -33.9 2.1 1.1 -18.5 -13.8 Production of lumber throughout the United States for the week ended October 5 was reported by the National Lumber Manufacturers Association at 23 percent of normal, the same as one month earlier. Shipments were 25 percent and orders received were 6 percent in excess of production. Flour Milling Production of flour at southwestern mills during October, as estimated from their weekly reports to the Northwestern Miller, totaled 2,156,458 barrels, or 82,757 barrels more than in the preceding month, but 208,818 barrels less than in the corresponding month last year. October grindings, with mills operating at 68.9 percent of full-time capacity, were the heaviest for any month since last November, but the lightest for any October since 1925. Cumulative output from July I to October 31 totaled 8,103,657 barrels as against 8,884,842 barrels milled in the first four months of the 1931-32 wheat year. Output of approximately ninety percent of the mills in the principal flour producing centers of the United States, in the first four months of the new wheat year beginning July 1, totaled 22,910,979 barrels as compared with 27,011,672 barrels during the same four months last year. As weakness in the grain markets persisted throughout the month, flour and millfeed prices declined to the lowest levels ever recorded in the present century. Early recessions stimulated buying, but, as values remained low, the trade was apparently content to continue the hand-ta-mouth policy, buying Oct. 1931 Barrels 135,114 693,654 100,445 187,uo 146,115 119,381 873,447 1,365,176 6,854,711 Grain Marketing Offerings of cereals at the five principal Tenth District grain markets were, kafir excepted, relatively light in October. With supplies of wheat waning, marketings were a fourth lighter than in September, 54.1 percent lighter than in October, 1931, and equal to but 60 percent of the ten-year average volume. "In the four months since harvest, less than one-half as much wheat has been received at these markets as in the like period in 1931. New corn started to move to market in October, but pr0ducers were reluctant sellers at prevailing prices and, although receipts were slightly larger than one month or one year earlier, they were 33 percent below normal. Supplies of oats and rye were heavier and of barley and kafir lighter than a year ago. Kafir receipts were larger than usual, but receipts of the other three grains did not equal one-third the normal volume~ Arrivals of six classes of grain at the five markets: Hutchinson ..... Kansas City... Omaha............ St. Joseph ....... Wichita.---··· Wheat Corn Barley Kafir Oats Rye Bushels Bushels Bushels Bushels Bushels Bushels 52,000 1,710,450 3,750 4,246,400 793,500 110,000 16,500 30,400 148,400 6,400 1,003,200 735,000 232,000 47,6oo 384,000 481,500 338,000 1,750 1,6oo 1,164,000 5,200 Oct. 1932........ 8,508,050 Sept. 1932....... I 1,351,650 Oct. 1931........ 18,545,850 10 Mos. 1932 .. I 53,308,350 10 Mos. 1931.. 256,119,150 2,012,6oo 1,9 25,900 1,919,100 680,000 64,100 47,500 100,400 88,100 86,700 91,650 578,000 10,500 326,900 113,700 14,773,550 6,471,500 183,500 725,400 2,109,100 44,029,500 8,087,100 135,100 1,507,950 1,850,200 679,5oo Prices of all grains declined steadily throughout October, closing at new low levels. Wheat was off 6½ cents, corn 3 cents, oats 2 cents, rye 6 cents, barley I cent, and kafir 11 cents per bushel for the month. N um her I hard and dark wheat at Kansas City closed at 40.½, number 2 mixed corn at 23, and number 2 white oats at 16 cents per bushel as against 54, 42, and 27 cents, respectively, one year ago. The first week in November, December wheat futures broke through the record low prices of October, 1931, establishing a new all time record low for futures, and on November 3 wheat was, for the first time in history, worth less on the Chicago market than the 42 cents per bushel tariff duty. Corn declined to the lowest levels since 1896. · s THE - MONTHLY REVIEW Crops Harvest of all Tenth District crops was completed ._o r rapidly nearing completion by November 15. Additional fall seeding of winter wheat depends on the receipt of moisture in the near future. Colorado, Wyoming, and the western sections of Kansas, Nebraska, and Wyoming, due to the extreme shortage of rainfall, experienced a very unfavorable crop year, but the balance of the District reported crop yields as generally satisfactory. All sections are entering another winter with a deficiency of sub-soil moisture. CORN: This District, on the basis of N ovem her I estimates of the United States Department of Agriculture, will produce 532,624,000 bushels of corn this year as against 393,884,000 bushels last year, and an average of 463,428,000 bushels in the five years, 1924 to 1928, inclusive. Prospects were virtually unchanged between October I and November 1. Dry and open weather has been unusually favorable for husking, which ranges from 90 percent completed in the south to '15 to 75 percent in the north. Production ranges from a total failure in some areas in the western part of the District, where abandonment has been unusually heavy, to record yields in the northeastern section. Quality is described as excellent except in the drouth areas. COTTON: Picking and ginning of cotton are nearly completed. Tenth District production is now estimated at 1,080,000 bales and United States production at 11,947,000 bales as compared to 1,336,000 and 17,097,000 bales picked in 1931. POTATOES: Drouth, blight, October ·freezes, and heavy abandonment, partly due to low prices, have cut severely into the Tenth District 1932 white potato crop. Production is now estimated at 32,087,000 bushels, 1,374,000 bushels less than promised October 1, but 4,307,000 bushels more than produced last year. Shipments from Wyoming and Nebraska will be extremely light this year although a record acreage was planted. SUGAR BEETS: Weather conditions have been favorable for the digging of sugar beets and harvest was nearly completed by November 15. Returns, while good, are slightly below earlier estimates and the total yield will be 21.7 percent short of a year ago for this District. BROOM CORN: Five states in the District will produce 27,300 tons of broom corn this year as compared to 34,700 tons last year, and an average harvest of 41,080 tons in the five years, 1924 to 1928. The acreage was reduced somewhat and the hot, dry weather cut yields. DRY BEANS: The condition of dry beans in the irrigated sections of Wyoming, Colorado, and Nebraska has held up fairly well although yields are not up to earlier expectations. In the dry land areas of Colorado and western Nebraska, yields are the lowest in years with a considerable acreage being cut for hay. Threshing progressed rapidly in October. WINTER WHEAT: The condition of fall sown wheat in western and southwestern sections of the wheat belt is very unsatisfactory, due to lack of rainfall and a shortage of subsoil moisture. Summer fallowed fields are making satisfactory growth. Less grain has been seeded in this area than advanced estimates and intentions indicated, and, although planting continues in a limited way, the extent of operations depends on the amount of moisture received in the immediate future. In the eastern half of the District there has been sufficient moisture for germination and growth, and the crop will go into the winter in good shape but a general rain is needed. OTHER CROPS: Grain sorghums were practically all in the shock or otherwise harvested by November 1. Yields ranged from fair to good in the eastern half of the District but were poor in the western portions. Pastures are generally short. Farmers are confining their feeding operations to home grown grains and most localities have sufficient roughage for livestock. Livestock MARKETINGS: The six principal livestock markets of this District received, as usual, more cattle, calves, sheep, and horses and mules during October than in September, but a decline of l'.l percent in arrivals of hogs at these markets was not characteristic of other years. October marketings of cattle were 4.7 percent lighter than a year ago, the smallest for any post war October and equal to but 70 percent of normal offerings. Receipts at Kansas City were reported the lightest for that month in forty-two years. More calves were marketed than a year ago but otherwise supplies were the lightest since 1920. Hogs arrived in about normal volume and the quality of offerings was uniformly good with heavyweights and sows scarce. Sheep and lambs were less numerous than in any October since 1921 and showed a loss of 23.5 percent as compared to October last year. The peak movement of range lambs has been passed and the movement of fed lambs will not reach significant volume before December. Offerings of horses and mules were more than 50 percent larger than one month or one year earlier. Recent estimates of the United States Department of Agriculture placed the population of horses and mules in this country at the lowest figure in forty years, reported that an actual shortage exists, and that prices are higher now than the thirty-two ·year low of last January. FEEDING OPERATIONS: Declines during October carried stocker and feeder cattle prices to the lowest levels in more than twenty years. Buying was cautious despite limited supplies, although, with feed costs low, reports indicate the existence of a broad potential demand. Shipments of cattle to the country from four Tenth District markets were 18 percent THE ESTIMATED PRODUCTION OF SEVEN TENTH DISTRICT CROPS, BASED ON Reported by the United States Department of Agriculture. In thousands (ooo omitted) - Broom corn excepted. Grain Sorghums Dry Beans White Potatoes Corn Bushels Bags Bushels Bushels 1932 1931 1931 1932 1931 1932 1931 1932 Colorado _______ 2,101 826 n,6oo 1,320 19,278 13,962 389 9,595 113,838 17,992 17,712 30 4,830 3,634 29 Kans 134,791 170,06o 1,683 I,444 189,240 5,310 3.675 Missou 218 IOI 170,714 276,548 63 9,520 7,205 Nebrask 352 New Mexico___ 5,66o 3,686 7,832 510 3,732 398 385 725 Oklahoma.. ___ 66,420 51,808 14,544 12,987 1,953 2,394 185 1,900 3,36o Wyomin 367 Scvca states United States.. ,. 687,087 533,311 39,577 4 2,294 2,920,689 2,563,271 105,992 104,529 1,102 10,301 2,011 33,670 27,854 12,713 359,403 375,518 THE NOVEMBER 1 CONDITION Sweet Potatoes Bushels 1932 1931 720 990 1,725 3,435 75,834 Broom Com Tons Tona 1931 5,6oo 3,500 900 1932 4,200 2,700 200 1,330 4,800 15,400 7,400 18,000 57° 2,8oo 62,~ 27,y:,o 34,500 Sugar Beetl 1932 1,803 2,532 1931 838 891 472 552 J,n3 8,788 7,fJ0J 200 34,700 44,6oo 3,915 6 THE. MoNTHLY REVIEW under .a year ago . and 43 percent short of the average num hers shipped during October the past ten years. A better demand for calves is evidenced .by increases of 15.1 percent over October, I 931, and .of 47 percent over the ten-year average movement. The countryward movement of hogs and sheep was extremely light, sales of the former equalling 10 percent and of the latter s:2 percent of normal, with shipments of each exceeded in every October in over a decade. · The Bureau of . Agricultural Economics reported October shipments, of stocker and feeder cattle into the corn belt states as 10 percent smaller than a year ago, 20 percent below the five-year_October average, and the smallest for the month in twelve years. In the three preceding months shipments ·were larger than last year, but the October reduction carried the total . for the four months, July to October, inclusive, to . the. second smallest in twelve years, with shipments into states west of the Mississippi smaller than in· any other year since 1919. More cattle are moving direct to feed lots this year than last and, with local supplies relatively heavy, the Bureau reported that feeding operations will probably be as large this year as last in all western states except Colorado, where feed s·upplies are short. Shipments of feeder lamb.s from market centers into corn belt feed lots in October were t:;stimated as 34 percent less and, since July 1, as 45 percent less than in the corresponding month and four months last year, establishing a -new low record since the figures became available in 1919. Colorado and western Kansas will feed few.er lambs than a year ago but about the same numbers will be fed in the Scottsbluff sections of Nebraska and Wyoming. RANGES: Livestock on western ranges are in generally good condition with range feed good and abundant except in western Kansas and Oklahoma, eastern Colorado, northeastern New Mexico, and southeastern Wyoming, from which areas some forced shipments of cattle and sheep will be made. Snows have partly relieved the water shortage in some areas and improved ranges. As much breeding stock, both cattle and sheep, is being held off the market as possible. PRICES: Sheep price fluctuations were numerous during October but net changes were narrow, .yearlings and feeders closing steady to 25 cents per hundredweight higher, and range lambs unchanged to 25 cents lower at Kansas City. Cattle prices showed an almost uninterrupted decline with beef steers mostly 50 cents to f,1 per hundredweight lower, and other classes 25 to 75 cents lower. Mid-September prices for better grades of slaughter cattle were the highest since January and approximated those of a year earlier, but declines to November I carried values to a practical top of $7 per hundredweight with bulk of sales.ranging from $5 to $7 per hundredweight, the lowest for the season in over twenty years. Hogs declined 6o to 70 cents. per hundredweight, closing at a top of $3.15 or 20 cents above the thirty-five year low of May 25, and 'I, 1. 85 under the year's high. Poultry and Dairy Products Egg prices advanced I cent per dozen in October and 7. to 8 cents per dozen the first three weeks of November, and with , the present farm price ranging from 26 to 28 cents per dozen~ · equivalent to the farm price of one bushel of wheat or . two · bushels of corn, they are at present in a favorable statistical position as compared with other farm commodities. Storage·· holdings are unusually low and fall production is not up to that of recent years. Poultry prices have shown no change the past seven ·weeks although November I cold storage holdings were 30 percent · smaller than one year earlier and market receipts have been running under a year ago or the five-year average. Marketings of turkeys for Thanksgiving this year were reported as slightly irregular with the supply increased somewhat but meeting. a good demand occasioned by light storage stocks and limited imports from Argentina. The United States and this District· have one of the largest turkey crops ever raised, numbers in the United States totaling 18 million birds, or 13 percent more than a year ago. Increases for the year in states of this District are: Colorado, 10; Kansas, 13; Missouri, 7; Nebraska, 18; Oklahoma, 15; and Wyoming, 5 percent. Prices, which advanced about 4 cents a pound early in October, have shown little change since, with Kansas City wholesalers bidding 14 cents per pound November 21. Production of creamery butter is estim¥l,ted at 3 percent 'less than a year ago and prices, which are extremely low, have failed to make any appreciable advance in recent weeks as consumer demand continues dull. Futures have recently shown a tendency to strengthen somewhat. Meat Packing More cattle and calves and fewer sheep were purchased for slaughter at the six leading livestock market centers of the Tenth District in October than in the preceding month this year or the corresponding month last year. Packers' purchases of hogs, · including those shipped direct to packers' yards, declined 12.5 percent for the month but were 17.7 percent larger than a year ago. October butcherings of cattle and calves were unusually light, the totals being equal to but 72 percent of the ten-year average October numbers. Slaughterings of sheep and swine displayed but slight variation from normal, although' sheep numbers were the smallest since 1927 and hog numbers the largest since 1928. Demand for meat at eastern consuming centers during October was characterized as dull with supplies heavy and prices lower than for several months. OCTOBER MOVEMENT OF LIVESTOCK IN THE TENTH DISTRICT RECEIPTS Cattle Kansas City ............................ 184,559 Omaha ..... '. -' - - - - - - 163,095 St. Joseph ......- - 35,579 Denver_ _ _ __ 66,966 21,768 Oklahoma CitY--···········--········ Wichita ...... - - - - - . ·20,9~ : Calves 56,287 32,678 7,959 10,144 6,945 5,416 October 193 · 492,927 · n9,419 ~pteinber 1932~; ...... :._.:..-.::....: 457,413 75~200: October 1931 · · · · 517,396 · ..n1,077. · - *Includes 142,624 hogs shipped direct to packers' Hogs •259,091 152,670 95,o95 36,354 29,953 52,6o4 PURCHASED FOR SLAUGHTER STOCKERS AND FEEDERS Sheep 164~210 209,983 93,1 21 570,102 5,398 . II,005 625,768 1,053,829 · 7il~?7 1,033,570· 6o3,679 1j377t7')7 yards•. Cattle 86,539 66,038 9, 153 29,189 Calves 27,567 13,699 2, 190 4,305 Hogs 910 407 · 43 2 645 191,oi9 · 47,761 2,394 177,793 . 25,250 3,426 i33,049 . 41,495 .. 14,5~7 Sheep 34,562 86,134 10,078 264,326 395, 100 264,898 670,077 Cattle 6o,494 79,796 21,195 10,513 I 1,028 7,942 Calves 13,683 18,979 4,681 1,904 6,139 1,66o 190,968 187,1n 187,723 47,o47 39,180 41,191 . Hogs •218,540 126,803 81,136 29,124 25,484 49,488 530,575 . 6o6,541 450.,770 .. Sheep I07,536 121,616. 79,863 21,478 4,679 4~91 340,663 367,94P ~2>5~f 7 THE MONTHLY REVIEW Cold Storage Holdings Zinc and Lead Cold storage holdings of beef, pork, lamb and mutton, and creamery butter in the United States on November 1, -were slightly larger than on the like date last year, but holdings of all other . commodities were somewhat smaller. Compared to the five-year average holdings as of that date, pork was the only item to show an increase, inventories of beef declining, 34.9; lamb and mutton, 22.6; poultry, 14.5; turkeys, 71.1; 111iscellaneous meats, 35.3; lard, 48.2; eggs, 34.4; creamery butter, 36.9; and cheese, 16.5 percent. · The seasonal into-storage movement of beef, mutton, and poultry during October was slightly in excess of the five-year average and substantially larger than a year ago. Reductions in stocks of lard and cheese were somewhat heavier than last year but fell short of the average. Net seasonal withdrawals of pork, miscellaneous meats, eggs, and butter were lighter than a year ago or normally. United States cold storage holdings as reported by the United States Department of Agriculture: Demand for zinc ore at mines in Missouri, Kansas, and Oklahoma, the Tri-state district, was reported good in October, and shipments during the five weeks' period ended November 5 exceeded those for the preceding five weeks ended October 1 by 90.6 percent, and, for the first time since May, 1930, exceeded totals reported for the corresponding period of the preceding year. Lead ore demand was somewhat restricted and shipments declined 18.8 percent as compared to the preceding five weeks, but were 31.3 percent heavier than a year ago. Shipments of both zinc and lead exceeded production. Zinc ore prices suffered two declines of 1,1 per ton closing at 1,17 as against 1,18 a year ago. Lead ore prices were steady at 1,32.50 per ton closing 1,5 per ton under last October. Zinc ore advanced 1,1 and lead ore 1,2.50 per ton the second week of November. Shipments of zinc ore and lead ore from the Tri-state district: Nov. 1 *Nov. I Oct. 1 193'2 193'2 1931 25,909 34,407 Beef, lbs ...·-··········································· 35,478 Pork, lbs............................................... 43'2,163 498,25'2 380,895 Lamb and mutton, lbs....................... '2,874 1,983 1,975 Poultry, lbs.·-······································· 55,08'2 36,683 65,668 •~urkeys, lbs......................................... 1,024 2,591 2,303 Miscellaneous meats, lbs..................... 37,080 40,086 48,744 Lard, lbs............................................... 34,358 70,656 39,766 Eggs, cases _ _ _ _ ........................ 3,'207 4,895 5,745 _Eggs, froz~n (case equivalent).......... '2,II 5 2,405 2,709 89,490 56,229 Butter, creamery, lbs,.---··················· 66,755 Cheese, all varieties, lbs..................... 78,288 81,406 87,386 (ooo omitted.) ·,.' *Subject to revisiQn. **Included in Poultry. Nov. I 5 Yr. Av. 54,456 425,876 3,7 14 64,443 3,54'2 57,308 66,283 5,838 2,'279 105,754 93,73'2 Petroleum Daily average production of crude oil by wells in the Tenth District declined 1.4 percent in October. Gross production was 1.9 percent larger than in September, but was 11 percent less than a year ago and the smallest for any October since 1921. Gross production in the United States was slightly larger for the month but was less than any October since 1925. Daily average domestic production in September was reported by the United States Bureau of Mines as 100,000 barrels short of the·. daily average domestic demand, with stocks of all oils having been reduced 18,435,000 barrels in the first nine months this year. . The estimated production figures for the United States and the five oil producing states of this District follow: Oklahoma. __ ........................................... . Kansas ..................................................... . Wyoming................................................. . Colorado................................................... . New Mexico............ :.···········:···········-········ *Oct. 193'2 Barrels 1'2,015,000 3,065,000 1,030,000 85,000 988,000 Sept. 1932 Barrels 11,849,000 2,919,000 1,o63,ooo 92,000 940,000 Oct. 1931 Barrels 13,617,000 3,122,000 1,098,000 . 143,000 1,335,000 ZINC ORE LEAD ORE Tons Value Oklahom~---····················· 21,962 $ 396,o6o Kansas.............................................. 5,436 97,689 Missouri............................................ 18'2 3,220 5 Wks. ended Nov. 5, 193'2.. ..... 5 Wks. ended Oct. 1, 1932.......... 5 Wks. ended Nov. 7, 1931·--····· '27,580 $ 496,969 14,467 284,671 18,470 351,79'2 Tons t,421 $ 31'2 166 · Value 45,857 9,939 5,258 1,899 $ '2,338 1,446 61,054 85,196 58,720 Bituminous Coal Production of bituminous coal at mines in the six coal producing states of this District during October, although 31 percent larger than in September and the largest for any month since last December, was the smallest for any post war October and equal to but 70 percent of the ten-year average output for that month. · The Bureau o.f Mines reported output of soft coal in the United States increased 24 percent during October, .carrying total production for the first ten months this year to 243,881,000 tons as compared to 317,740,000 tons mined in the first ten months of 1932. Consumers' stocks as of October 1 were reported at 27,500,000 tons or 20.3 percent less than a year ago and the lowest for the season since 1922. Estimated production of soft coal in the United States and the six coal producing states of the Tenth District: Colorado..·-························-········· Kansas .......................................... Missouri .............................. '. ........ . New Mexico·--·--········ .............. . Oklahoma. __ -························ ...... . Wyoming...............:.......:··'. ........... *Oct. 193'2 Tons 574,000 260,000 358,000 125,000 276,000 497,000 *Sept. 1932 Tons 526,000 174,000 26o,ooo 95,000 148,000 392,000 Oct. 1931 Tons 701,000 '218,000 310,000 130,000 '231,000 531,000 Total, six states·----··················· 2,090,000 1,595,000 '2,121,000 Total, United States·--- ············· 32,633,000 26,314,000 35,700,000 *Estimated from the weekly reports of the United States Bureau of Mines. Cement For the fourth consecutive month production of Portland cement at mills in this District exceeded shipments, and stocks 19,315,000 Total, five states·--································· 17,183,000 16,863,000 on hand at the close of October were the largest since February. Total, United States·---························· 66,295,000 65,036,000 73,079,000 October output fell over 10 percent short of that of September Effective October 15, numerous purchasing companies ad- · this year or October last year, and shipments were also smaller vanced quotations on mid-continent crude 12 cents per barrel, than in either of those months. but ·se\;eral companies adhered to the old schedules which Production, shipments, and month-end stocks of Portland ranged from 76 cents per barrel for low gravity grades to 1,1 cement at mills in this District and the United States in thouper barrel for oil testing 40 degrees and over. sands of barrels as reported by the Bureau of Mines: TENTH DI STRICT UNITED STATES Although there were more drilling operations completed Shipments Stocks Production Shipments Stocks during October and more rigs up and wells drilling at the close October 1932.... Production 819 775 '2,082 7,939 8,743 17,074 than a year earlier, field activity lacks considerable of being September 1932 914 886 2,037 8,210 9,729 17,878 91'2 1,066 1,693 10,762 u,36o 21,'2·18 October 1931.... normal. 8 THE MONTHLY REVIEW Business Conditions in the United States By the Federal Reserve Board ..- Nit~ M --. .. , • •,. • • ., "° INOU::TRIAL llr\00:JCTIOII IIO 1lO A.. ,,,-- I 20 \ / II '\ I 00 90 '\I"'\,. ao '\., ,0 _, - '- -r i "'" "'° 1\.11 101 60 so Index number of industrial production, adjusted for seasonal variation. (19:23-19:25 avcrage•100.) Latest figure, October, 66. -- -- 110 -...... __,,,, ', ~ " IOO - ~ • ao I~ 'II .• n• 1ze '" FACTORY [MPLOY~ENT 10 ~ ~ -· "' •o INT - 1929 1~,~ "l• 1931 Federal Reserve Board's index of factory employment with adjustment for seasonal variation. (19:23-19:25 averagc-100.) Latest figure, October, 61.1. -CDT ,uc:on l20 120 WHOLESALE PlilCES ttO IDO 110 .- 100 -~~ "''- ....._ '10 60 90 ao ,0 60 50 50 19n 1ne '929 1530 1931 1932 Index of United States Bureau of Labor Statistics (19:26-100). Latest figure, October, 64.4. Monthly averages of daily figures. Latest figures arc averages of first :20 days in November. Volume of industrial output, after increasing considerably during August and September, remained unchanged in October. Factory employment and payrolls reported for the middle of the month showed a further increase. During October, as in the last three weeks of September, wholesale commodity prices declined, and in the first three weeks of November the general average was at the level of early summer. PRODUCTION AND EMPLOYMENT: Industrial production, as measured by the Board's seasonally adjusted index, continued in October at 66 percent of the 19~31925 average, as compared with a low level of 58 percent in July. In the textile industries, which had shown a rapid expansion in August and September, there was a slight decrease in consumption of raw materials while output of finished products increased somewhat. Shoe production, which also had increased substantially in recent months, showed a seasonal decline. Operations at steel mills expanded from an average of 17 percent of capacity in September to 19 percent in October, contrary to seasonal tendency, and according to trade reports, continued at about this rate through the first three weeks of November. Production of automobiles in October declined further to a new low level. At coal mines activity continued to increase rapidly until the middle of October, but since that time a reduction, largely seasonal in character, has been reported. Employment in most manufacturing industries increased between the middle of September and the middle of October, and the Board's seasonally adjusted index of factory employment showed an advance from 60 percent of the 1923-1925 average to 61 percent. At textile mills working forces increased by considerably more than the usual seasonal amount, and substantial increases were also reported at steel mills, lumber mills, and car building shops. In the canning and automobile industries there were decreases in employment. Value of construction contracts awarded, as reported by the F. W. Dodge Corporation, continued at low levels during October and the first half of November. The Department of Agriculture estimate of the cotton crop, based on November 1 conditions, was n,950,000 bales, about 525,000 bales larger than the estimate a month earlier. DISTRIBUTION: From September to October volume of freight traffic increased by more than the usual seasonal amount. After the middle of October carloadings declined, reflecting chiefly seasonal developments. Dollar value of department store sales increased by the usual amount in October. WHOLESALE PRICES: Wholesale commodity prices, as measured by the monthly index of the Bureau of Labor Statistics, declined from 65 percent of the 1926 average in September to 64 percent in October. Weekly figures show declines in the general average from early September through the first week in November, reflecting reductions in the prices of many domestic agricultural products and their manufactures as well as in the prices of steel rails, copper, coffee, rubber, and silk. In the second week of November prices of many leading commodities including grains, hogs, cotton, silk, zinc, lead, and tin advanced considerably, but later the prices of these commodities declined. BANK CREDIT: Volume of reserve bank credit showed little change for the four week period ending November 16. Member bank balances at the reserve ~anks increased further by '$75,000,000, and in the middle of November were about $475,000,000 in excess of legal reserve requirements. This growth in reserve balances refl~cted an increase of $6o,ooo,ooo in the stock of gold and the issue of additional national bank notes. Demand for currency showed little change during the four-week period. Loans and investments of reporting member banks in leading cities, outside of New York City and Chicago, declined further between the middle of October and the middle of November, reflecting a further reduction of loans at these banks. In New York City the investments of member banks increased by an amount larger than the decrease in loans so that total loans and investments of these banks showed a further increase. Money rates in the open market continued at low levels during October and the first half of November. Rates on 90-day bankers' acceptances were unchanged at ½ of 1 percent, and rates on prime commercial paper declined from a range of 1¼ to 2 ~o a range of 1½ to 1¼ percent.
@FedFRASER