The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
THE MONTHLY REVIE V Of Agricultural, Industrial, Trade and Financial Conditions in the Tenth Federal Reserve District FEDERAL Vol. 18 RESERVE KANSAS C1TY, BANK Mo., MPROVEMENT in trade, industry, and employment, and a decline in farm purchasing power were evidenced for the Tenth District by the October reports. With one of the most unsatisfactory crop years the District has experienced drawing to a close, October changes in prospective crop yields were slight. Weather conditions were favorable for the maturing and harvesting of late crops but moisture supplies were light and a genera] deficiency of soil moisture exists, particularly in the winter wheat belt. Trade at both wholesale and retail establishments improved by slightly more than the usual seasonal amount in October, and the dollar volume of sales was greater than a year ago. Sales of lumber at retail and of new paid-for life insurance showed substantial increases for the month and fractional gains over October, 1932. Payments by check and Federal reserve bank clearings were larger than one month or one year ago. Building operations, although comparatively lig!1t, showed some improvement. Business failures were less numerous and the amount of liabilities involved smaller than at any time since 1920. Flour and bituminous coal output increased somewhat as usual over September but was lighter than a year ago, or for the like month in recent years. Crude oil production was reduced in conformity with Federal regulatory restrictions, but gross production exceeded the October, 1932, total by · 23.1 per cent. Zinc ore shipments were larger than for the preceding month this year or the corresponding month last year, whereas, lead ore shipments declined during the month but were substantially larger than a year ago. Grain marketing, excluding corn, was especial1y light and livestock marketing, although seasonally large, was below normal. Prices of both grains and meat animals declined during the month. The break in grain prices the forepart of the month was sharp but a large part of the loss was recovered later. Beef prices declined to the lowest levels in twenty-five years or over, and pork was off about 20 per cent at the close but higher than a year ago. Lambs about held their own and closed somewhat higher than last year. Poultry, eggs, and butter were the lowest for the season in years. With feed prices higher than a year ago and beef, dairy, and poultry products lower, feeding margins have narrowed considerably. Federal advancements of funds to farmers have so far been confined to the swine and cotton reduction programs. I OF DECEMBER KANSAS r, 1933 CITY No. 12 BUSINESS IN THE TENTH FEDERAL RESERVE DISTRICT Percentages of Increase, or Decrease (-), for October 1933 over September 1933 and October 1932 and for the first ten months of 1933 over the like period in 1932. October 1933 10 Months 1933 Compared to Compared to Banking Sept. 1933 Oct. 1932 10 Months 1932 Payments by check.................................. o.6 11.2 - 4.6 Federal Reserve Bank clearings.............. 16.2 23.5 2.5 Business failures, number.... _ _ _ _ -45.1 --62.1 -35-0 Business failures, liabilities _ _ _ _ -43.6 -50.9 -56.7 Loans, 52 member bank.,_____ - 1.4 - 9.4 Investments, 52 member banks.............. 3.1 19.4 Net demand deposits, 52 member banks 7.1 13.4 Time deposits, 52 member banks.---····· - 1.7 - 4.5 Savings deposits, 44 selected banks.-..... - o.6 - 6.8 Savings accounts, 44 selected banks...... 0.3 - I.I Distribution Wholesalers' sales, 5 lines combined ..... . 2.0 6.2 o.8 Retailers' sales, 32 department stores... . 8.9 3.6 - 5.6 Lumber sales, I 56 retail yards ................ I I.8 o.8 8.6 Life insurance, writte,,..__ _ _ __ I4.9 0.3 Production Flour_ _ _ _ _ _ _ _ _ _ __ 6.1 -15.6 - 2.9 Crude petroleu,..__ _ _ _ _ __ - 8.3 23.1 14.2 S o f t c o a ~ - - - - - - -- - - 6.5 - 5.2 Zinc ore (shipped) Tristate District ...... 10.2 64.4 Lead ore (shipped) Tristate District... ... 106.6 62.0 -32.2 Cemen-------··---16.3 Building permits in 17 cities, value........ 31.0 18.3 -37.4 Grain receipts, 5 markets Whea.___ _ _ _ _ _ __ -16.0 -43.2 -43.0 Corn .... _ _ _ _ _ _ _ _ _ __ 84.6 8.4 179.6 -18.6 Oats·----·· · · · · · - - - - - -- - - -16.8 46.3 Rye ...... - - - - - - - - - - - -47.7 182.2 -33.7 Barley _ _ _ _ _ _ _ _ _ __ -12.0 r3r.4 18.9 Kafir ............ _ _ _ _ _ _ _ __ 0.1 --64.7 -5o.5 Livestock receipts, 6 markets Cattle.. _ _ _ _ _ _ _ __ - 2.2 52 ·4 Calve.~ - - - - - - - - - - - 11 3•7 2.6 Hogs .. _ _ _ _ _ _ _ _ _ __ 2 -10.7 18.1 Sheep........ _ _ _ _ _ _ _ _ __ 4 1 ·5 - 3.7 4·3 Horses and mules .. _ _ _ _ _ __ 12.0 65.9 Meat packing, 6 markets Cattle.. _ _ _ _ _ _ _ _ _ __ 1 4•7 22.2 Calve"-------------39· 2 Hogs .. _ _ _ _ _ _ _ _ _ __ -14.8 -76.5 Sheep ........... _ _ _ _ _ _ _ __ -11.1 - o.8 3.0 Stocker and feeder shipments, 4 markets 1 37•3 1 5·3 Cattle ·-····························---Calve._.... ,___ _ _ _ _ _ _ _ _ __ 287.6 - 0.7 Hogs .. _ _ _ _ _ _ _ _ _ __ -65.5 34.6 Sheep ........ _ _ _ _ _ _ _ _ __ 8.8 114.6 I.O Loans secured by stocks and bonds and "all other" loans, largely commercial, shared in these declines. Member Bank Operations The banks enlarged their investment holdings, however, Total loans and discounts of fifty-two reporting member the increase for five weeks amounting to 3.1 per cent and for banks in leading cities of the Tenth District declined I.4 per fifty-two weeks 19.4 per cent. The greater increase was in cent during the five weeks' period ended November 15. · On Government security holdings, with investments in other that date they were near the lows of recent years recorded bonds, stocks, and securities showing a slight decline for the last May and 9.4 per cent less than on November 16, 1932. year. This Copy Released For Publication In Afternoon Newspapers November 29. THE MONTHLY REVIEW Net demand deposits were 7.1 per cent larger on November 15 than five weeks earlier and 13.4 per cent larger than a year ago, whereas, time deposits were 1.7 per cent below the total of October II, and 4.5 per cent less than on November 16, 1932. The following summary shows amounts of the principal resource and liability items reported by the fifty-two banks, as of the three dates mentioned: Loans and investments-total.. Loans and discounts-total _____ Secured by stocks and bonds All other loans and discounts Inv es tm en ts-to taL ______ ._ ... _...... U. S. securities.·----····--···--······Other securitie Reserve with F. R. bank.--········ Net demand deposits Time deposits .... __ Government deposits ......... _...-...- Nov. 15, 1933 $512,000,000 2II,ooo,ooo 55,000,000 I 56,000,000 301,000,000 l 93,000,000 108,000,000 73,000,000 364,000,000 I 70,000,000 13,000,000 Oct. II, 1933 Nov. 16, 1932 $506,000,000 $485,000,000 214,000,000 233,000,000 67,000,000 57,000,000 166,000,000 l 57,000,000 292,000,000 252,000,000 185,000,000 140,000,000 l l 2,000,000 107,000,000 64,000,000 41,000,000 321,000,000 340,000,000 173,000,000 178,000,000 6,000,000 15,000,000 Federal Reserve Bank Operations Member bank borrowings at the Federal Reserve Bank of Kansas City and branches increased from $3,504,409 on October 11, the lowest point in recent years, to $4,094,241 on November 15. Borrowings on the latter date were, however, $II,347,312 less than on November 16, 1932. Bills purchased in the open market exhibited a similar trend, showing an increase for the five weeks, and a substantial decrease in fiftytwo weeks. Purchases of United States Government securities during the five-weeks' period boosted the bank's holdings thereof to a record total of $83,341,200 on November 15, an increase of 45.6 per cent over the like date last year. Total holdings of bills and securities as of November 15 were 7.7 and 19.3 per cent, respectively, larger than five weeks or one year earlier. Federal reserve note circulation declined 4 per cent between October II and November 15, but the amount of the new Federal reserve bank notes outstanding more than doubled during the period. Circulation of the two combined exceeded the Federal reserve note circulation total of November 16, 1932, by $22,081,220. Principal items contained in the weekly condition statements of this bank and branches, for the three dates of comparison, are shown herewith: Nov. 15, 1933 Oct. II, 1933 Nov. 16, 1932 Gold reserve...________ f,144,720,3II $144,282,485 $ 85,788,592 Other cash.________ 9,677,222 7,920,9II 7,952,848 Bills discounted·---·-···--··············· 4,094,241 3,504,409 15,441,553 Bills purchased._ ............. _............ 370,691 179,614 889,100 U.S. securities. __.._._ ......._........... _ 83,341,200 77,807,200 57,252,100 Total bills and securities ..........._ 87,806,132 81,491,223 73,582,753 Total resources .... _ _ _ _ _ 280,129,236 262,689,001 195,515,166 F. R. notes in circulation ......._.. 104,622,835 109,002,185 90,889,565 F. R. bank notes in circulation.. 8,347,950 3,740,550 -··-·················· Member banks' reserve deposits 116,508,486 107,915,213 66,368,830 The discount rate of the Federal Reserve Bank of Kansas City, on all classes of paper and all maturities, remains unchanged at 3.½ per cent. CLEARINGS: Check collections through the Federal Reserve Bank of Kansas City and branches at Omaha, Denver, and Oklahoma City were considerably heavier in October, both as to the number of items handled and the aggregate amount, than in September this year or October last year. Totals for the ten months show a reduction of 6.3 per cent in the number of items handled but an increase of 2. 5 per cent in dollars. October check collections with comparisons: ITEMS October----···--··Septem ber. ___ ·_·· Ten months ..... _ 1933 4,703,124 4, 230,093 40,532,983 1932 4,097,060 3,774,073 43/2.59,048 AMOUNT 1933 1932 $ 678,577,000 $ 549,265,000 584,052,000 5,440,041,000 502,029,000 5,308,721,000 Bank Debits Banks in twenty-nine leading cities of the District reported debits to individual accounts for the four weeks ended November 1 as o.6 per cent larger than in the preceding four weeks and 11.2 per cent larger than for the corresponding four weeks of 1932. This was the fifth consecutive increase over a year ago and, July excepted, the largest. The totals by cities follow: PAYMENTS BY CHECK FouR WEEKS ENDED Nov. 2, 1932 Nov. 1, 1933 Albuquerque, N. M 6,442,000 '/, 6,470,000 $ Atchison, Kans 2,390,000 2,398,000 Bartlesville, Okl 24,129,000 20,970,000 Casper, Wyo. 3,525,000 3,959,000 Cheyenne, Wyo ........................... 4,727,000 5,097,ooo 8,750,000 9,477,000 Colorado Springs, Colo.·-··········· Denver, Colo ... __ 101,481,000 91,117,000 6,681,000 6,701,000 Enid, Okla... -... Fremont, Nebr 1,489,000 1,694,000 1,848,000 1,730,000 Grand Junction, Colo ...·-···-·······Guthrie, Okla. 1,481,000 1,454,000 Hutchinson, Kans ... 9,296,000 7,921,000 Independence, Kans ......... --........ 3,190,000 3,851,000 Joplin, Mo ........ -.........-..........._.... 5,666,000 5,75 1,000 Kansas City, Kans .... __.......... _.... 8,078,000 9,220,000 Kansas City, Mo 230,047,000 . 204,403,000 2,666,000 2,799,000 Lawrence, Kans Lincoln, Nebr 18,773,000 17,936,000 Muskogee, Okla .. 8,483,000 6,755,ooo Oklahoma City, Okla ................. 65,982,000 52,632,000 Okmulgee, Okla. 2,173,000 1,857,000 101,640,000 Omaha, Nebr... 97,192,000 2,721,000 Pittsburg, Kans. 2,697,000 Pueblo, Colo 8,245,000 12,499,000 Salina, Kans ......... 5,702,000 4,834,ooo 21,111,000 St. Joseph, Mo 17,676,000 Topeka, Kans .. _. 10,538,000 9,346,000 Tulsa, Okla. 72,163,000 64,979,ooo Wichita, Kans ....... 26,921,000 26,137,000 Total 29 cities, 4 weeks ..._........ Total 29 cities, 44 weeks.....-...... U. S. 263 cities, 4 weeks ........._.. t, 771,949,000 7,797,880,000 25,785,511,000 $ 693,941,000 8,173,461,000 24,434,796,000 Per cent Change -0.4 -0.3 15.1 -II.O -7.3 8.3 II.4 0.3 -12.1 - 6.8 1.8 17.4 20.7 - 1.5 -12.4 12.5 -4.8 4.7 25.6 2 5•4 17.0 4.6 -0.9 51.6 18.0 19.4 12.8 II.I 3.0 II.2 -4.6 5-5 Business Failures Dun and Bradstreet, Incorporated, reported only thirty-nine business insolvencies for this District in October, with the amount of liabilities involved totaling but $412,054. This was the smallest number of failures reported for any month since November, 1920, with liabilities lower than at any time since August of that year. Failures in the United States were more numerous and liabilities larger than in September but the November number was the smallest for that month since 1920 and the amount involved was even below the November, 1920, total. Business insolvencies in this District and the United States: TENTH October 1933 ·-·--------··-·-··--·September 1933 --·--···--·-·---·· October 1932 ··-------···-····---·· Ten months 1933 ·--···------·--Ten months 1932 -·--·-··---··--- Number 39 71 103 885 1,361 UNITED STATES DISTRICT Liabilities Number Liabilities $ 412,054 1,206 ' 30,581,970 I,II6 21,846,~ 730,876 2,273 52,869,794 839,54 1 13,619,418 17,938 450,276,776 1 2 810,502,747 3 ,459, 46 27,280 Savings Deposits to savings accounts in forty-four selected banks in leading cities of the Tenth District declined o.6 per cent between October 1 and November 1, and the total on the latter date was 6.8 per cent smaller than on November 1, 1932. 3 THE MONTHLY REVIEW Stores Reporting Kansas City.·--·· 4 Denver 4 Oklahoma City.... 3 Tulsa.................... 3 Wichita ................ 3 Other cities .......... 15 RETAIL TRADE AT 32 DEPARTMENT STORES IN THE TENTH FEDERAL RESERVE DISTRICT AMOUNTS COLLECTED SALES STOCKS (RETAIL) ACCOUNTS RECEIVABLE October 1933 STOCK TURNOVER Oct. 31, 1933 Oct. 1933 10 Months 1933 Oct. 31, 1933 compared to compared to compared to compared to 10 Months October compared to Oct. 1932 10 Months 1932 Sept.30,1933 Oct.3 1,1932 1933 1932 1933 1932 Sept.30,1933 Oct.31,1932 Sept. 1933 Oct. 1932 18.I 0.9 - 1.2 6.2 .20 .18 1.75 1.62 - 2.7 7.5 - 7.3 5.7 0.2 -0.5 4.6 14.7 4.2 8.6 9.0 5.6 .25 .25 2.56 2.22 -5.6 9.0 - 2.3 35-4 - 5.9 -7-5 0.9 .31 4.3 .33 2•79 2.40 8.8 21.2 20.3 2.9 2.1 3.8 1.7 .40 3.62 3.73 .30 3o.4 20.2 - 6.4 -10.6 Il.O -21.1 -15.4 5.1 - 5.6 .27 .23 2.52 1.98 2.1 14.1 - 4.0 - 2.3 6.6 7.1 - 8.3 .24 2.25 2.23 .23 4.4 Tota.___ _ _ 32 3.6 - 5.6 4.8 4.0 .24 .24 2.29 2.09 5.1 - 1.1 18.4 NOTE: Percentage of collections in October on accounts September 30, all stores repor ting 35.9. Collections same month last year 34.7. These banks reported an increase for the month of 0.3 per cent in the number of savings accounts, with the total as of November I, I.I per cent below a year ago. The figures for the three dates of comparison follow: November 1, 193,___ _ _ _ __ October 1, 193 __._ _ __ _ _ _ November 1, 193...___ _ __ __ Savings Accounts 369,o49 367,793 373,280 Savings Deposi ts 1, 99,377,354 99,962,228 106,607,348 Trade RETAIL: Stimulated by favorable weather conditions, October dollar sales of merchandise at thirty-two department stores in the Tenth District increased 8.9 per cent over September and, as usual, were the largest for any month since July. The gain for the month was the largest reported since 1925, comparing favorably with a normal increase of 7.5 per cent, and the exceptional decline of 1.7 per cent recorded in 1932. October sales exceeded the total for the like month last year by 3.6 per cent, which is the first increase reported for that month over the same month of the previous year since 1929. September sales fell 6.1 per cent short of a year ago, but the four preceding months showed varying increases, culminating in a maximum gain of 21.6 per cent for August this year over August, 1932. Cumulative sales for the ten months of 1933 are 5.6 per cent less than in the corresponding period last year. Merchants increased their inventories 4.8 per cent, or about as usual in October, and stocks on hand at the close of the month were 4 per cent heavier than on October 31, 1932. This is the first time since 1927 that stocks on hand at the end of October were larger than the year before. Collections were reported as better than one month or one year earlier, amounting to 35.9 per cent of amounts outstanding September 30 as compared with collection percentages of 32.7 in September this year and 34.7 in October last year. WHOLESALE: Based on the dollar volume of sales of five reporting lines combined, wholesale trade also showed an improvement over September this year and October, 1932. By individual lines, wholesalers of hardware and drugs reported good increases over both periods. Grocery sales were unchanged for the month and slightly under a year ago. Sales of dry goods were larger, and furniture smaller than in September, with sales of the former falling below, and of the latter showing a substantial betterment as compared to October, 1932. Dry goods .... Grocerie Hardware Furnitur Drugs Reporting Stores 6 5 9 5 6 Wholesalers of dry goods reduced their inventories during the month, whereas, the other four lines increased theirs somewhat. Hardware and furniture stocks were 7.7 and 42.8 per cent larger on October 31 than a year earlier, with reductions reported for dry goods, groceries, and drugs. Life Insurance Reports of the Life Insurance Research Bureau disclose that sales of new paid-for ordinary life insurance were larger in October, in all Tenth District states, than in September. Also, Colorado and Missouri were the only states to report losses as compared to October, 1932. Sales figures for the seven states and the United States for the three months under review: Colorado.__ ················---Kansas..................... _ _ __ Missouri ........................................ Nebraska ...................................... New Mexico·---······--··················· Oklahoma. __ ································· Wyoming ...................................... Seven state.,___ _ __ Uni ted States..·--······--················· October 1933 September 1933 October 1932 'I, 4,064,ooo ,, 3,953,000 ,, 4,531,000 4,896,000 5,293,000 4,427,000 16,248,000 I 5,163,000 12,969,000 4,481,000 5,131,000 4,975,000 661,000 729,000 582,000 5,21 7,000 4,035,000 4,877,ooo 694,000 642,000 489,000 1, 36,291,000 465,1 77,000 ,, 31,583,000 417,880,000 ,, 36,183,000 4 79,4o9,ooo F lour 1 v:Hlling Production of flour at Tenth District mills in October increased by about the usual amount as compared to September. The October output was, however, the lowest for the month since 1920, 15.6 per cent below October, 1932, and 23 per cent short of the ten-year average. Mills operated at only 59 per cent of full-time capacity as against 55.6 per cent in the previous month and 68.9 per cent last October. The production figures, as estimated from the weekly reports of southwestern mills to the Northwestern Miller, are shown in the following table: Atchisou...._ _ _ _ _ _ __ _ _ Kansas City_ _ _ _ _ __ Omaha ...................................................... Salina .................- - - -- - Wichit...___ _ _ __ __ Outside..............- - - - -- - Oct. 1933 Barrels 95,812 503,851 99,453 141,361 169,037 809,692 Sept. 1933 Barrels 88,300 488,580 94,53° 140,720 159,376 743,639 Oct. 1932 Barrels 137,815 612,528 113,634 178,000 234,153 880,328 Tota _ _ _ _ .................................... I ,819,206 1,715,145 2,156,458 *United State,.,___ _ _ __ 5,326,905 4,978,094 6,165,944 *Represents about two-thirds of the total output in the United States. WHOLESALE TRADE IN THE TENTH FEDERAL RESERVE DISTRICT OUTSTANDINGS SALES AMOUNTS COLLECTED Oct. 1933 compared to Oct. 31, 1933 compared to Oct. 1933 compared to Oct. 1932 Sept. 1933 Sept. 30, 1933 Oct. 31, 1932 Sept. 1933 Oct. 1932 - 6.o 1 9·5 -7.0 - 7.7 1.7 3o.5 Even - I.8 o.6 14·5 I.I - 3.4 18.8 29·7 - 2.0 2 9·5 3.2 5.9 -19.1 20.9 2.7 8.3 - 4.3 34.0 17•3 8.2 11. 2 6.7 2 9 1.7 STOCKS Oct. 31, 1933 compared to Sept.30,1933 Oct. 31, 1932 - 7.0 - 9.7 -0.7 4.9 3.3 7.7 13.2 42.8 )· ~ - 15 9 THE 4 M ONTHL y R EVTF.W Sales of flour improved as wheat prices declined the forepart of October, with buyers attempting to average-up their cost, and fell off as the greater part of the loss in grain prices was recovered at the close. Flour prices followed grain prices, closing the month net unchanged. Shipping directions improved, indicating a lowering of the large stocks accumulated last July. Export demand was reported as somewhat better. Millfeed prices declined the forepart of October but showed a net advance of $1 per ton at the close. Demand was dull throughout the month and offerings were in excess of limited requirements. Reduced running time at mills relieved the pressure to sell somewhat. Grain Marketing Receipts of wheat, oats, rye, barley, and kafir at the five principal grain markets of this District during October were extremely light, being respectively equal to but 35, 29, 21, 26, and 46 per cent of the ten-year average volume. October marketings of wheat and oats were the smallest for the month in fifteen years of record as were also those of rye, 1931 excepted, and barley, 1932 excepted. Marketings of corn continued heavy, exceeding the average by 32 per cent, the September total by 8.4 per cent, and the October, 1932, total by 84.6 per cent. October receipts of grain at the five markets: Wheat Bushels 480,600 2,344,000 1,129,600 412,800 465,000 ~ Oats Bushels Rye Bushels 170,000 154,000 228,000 1,300 7,5 00 35,000 Oct. 1933...... 4,832,000 3,715,050 553,300 Sept. 1933._ 5,754,200 3,427,000 665,000 Oct. 1932 .. _.. 8,508,050 2,012,600 680,000 10 Mos. 1933 87,327,600 41,303,600 9,466,300 IO Mos. 1932 153,308,350 14,773,550 6,471,500 42,500 81,300 64,100 800,000 283,500 Hutchinson ... Kansas City.. Omaha .......... St. Joseph..... Wichita·---·- Corn Bushels 21,250 1,524,000 1,282,400 805,500 81,900 Barley Bushels 1,250 84,800 20,800 1,750 1,300 Kafir Bushels 27,300 43,400 109,900 70,700 124,950 70,600 47,500 200,400 862,700 1,093,900 725,400 2,209,100 Grain prices broke severely the fifth trading day of the month and continued downward until the third week. Thereafter, all classes but kafir recovered a large share of the loss, closing but slightly lower for the month. All grains closed substantially higher than one year earlier. Changes in grain prices at Kansas City during October with closing prices compared to a year ago and November 20: No. No. No. No. No. No. Nov. 20 Oct. 31 Oct. 17 Sept. 30 Oct. 30 Sept. 30 1933 1932 1932 1933 1933 1933 I hard & dark wheat $.82 $.84 $.65½ $.85½ $.40¼ $.47 .26 :2 mixed corn ............ .40 .42½ .23 .35½ .43½ 2 whitt: oats.............. .16 .18 .26½ .36 .34 .33 2 rye .... .61½ .50 .30.½ .36 .65 .59 .22 2 barley .22 .40 .43 .45 -45½ .81 2 kafir .So .46 1.09 .58 .75 Crops On the~whole 1933-·was ·one of the poorest crop years this District has experienced. t Insufficient soil moisture, late spring freezes, poor seed bed ~:preparation, drouth, and excessive temperatures during the ., summer months cut heavily into yields of spring grains, corn, hay, and early harvested potatoes. Opportune fall rains and late frosts were beneficial to late maturing crops. Production of cotton, tobacco, sugar beets, and peanuts in the seven states exceeds that of 1932 or the average for the five-years, 1926 to 1930 inclusive. Final yields of spring wheat, dry beans, tame hay, apples, and pears are estimated as larger than a year ago. All other crops, particularly winter wheat, corn, oats, rye, barley, broom corn, white potatoes, wild hay, and peaches, show marked reductions from a year ago or the average. Feed crops are short generally, being unusually low in relation to the numbers of livestock on farms. Favorable weather in October hastened the maturity 'and harvesting of all late crops. Corn escaped frost damage and husking and cribbing are over half done. The grain is well matured but quality is only fair and yields are below average in all states except Nebraska. Tenth District production is now estimated at 388,232,000 bushels as against 524,390,000 bushels harvested in 1932. Threshing of dry beans and the harvesting of sugar beets and feed crops were virtually completed by mid-November. The acreage abandonment of dry beans this year was the lowest in two years and the 1933 crop is estimated as 96.6 per cent larger than a year ago but IO per cent below normal. Sugar beet acreage was expanded and the 1933 crop is exceptionally large. Broom corn was damaged severely by heat and drouth, and the crop is unusually short. Oklahoma reports the yield of peanuts as uniformly good but the pecan crop as light. General improvement in yields has been reported by all late potato producing areas. According to available information, approximately 80 per cent of the three year (1930 to 1932) average annual seeded acreage of wheat has been signed up under the Agricultural Adjustment Administration's three year acreage reduction program. The 15 per cent acreage reduction so pledged for the 1934 crop will constitute about 7,788,000 acres or less than I 5 per cent of the total acreage seeded for 1933. Therefore, a reduction somewhat less than that pledged under the International Wheat Agreement is indicated and means to fulfill that agreement are now being considered. Fall seeding of winter wheat is about completed in this District. Surface and subsoil moisture are lacking over most of the wheat belt, although areas in southwestern and southeastern Kansas received substantial rains the first week of November. Development is spotty and, on the whole, below normal, with some reseeding necessary. THE ESTIMATED PRODUCTION OF SEVEN TENTH DISTRICT CROPS, BASED ON THE NOVEMBER Reported by the United States Department of Agriculture In thousands of units (ooo omitted exct:pt broom corn) CORN GRAIN SORGHUMS Bushels 1933 1932 Colorado ______ ........ 21,954 13,363 8:2,599 136,197 Kans a " - - - Missour·~--- 135,242 186,721 N ebraska_______.___ _ 229,905 269,293 New Mexico _________ 3,5:28 3, 267 Oklahoma ___________ :22,323 65,760 Wyoming___________ Bushels 1933 193 2 1,816 1,:236 13,743 17,:264 1,462 1,419 666 330 5,768 3,763 13,698 15,219 Seven states_______ 497,741 676,625 United States ______ 2,289,544 2,875,570 37, 153 91,585 39,:231 105,871 DRY BEANS Bags 1933 1932 983 389 50 25 108 666 IOI 408 326 162 2,133 11,639 I ,08 5 10,164 WHITE POTATOES Bushels 1933 1932 12,450 11,000 :2,150 5,148 2,250 5,200 8,760 8,775 656 510 2,535 3,108 2,813 1,650 Jl ,614 317,612 35,391 357,679 SWEET POTATOES Bushels 1933 1932 57° 75° 720 900 I CONDITION BROOM CORN Tons 1932 1933 5,600 3,400 2,800 3,3 00 300 300 SUGAR BEETS 1933 2,756 Tons 1932 1,777 4,800 12,100 1,368 506 2,688 69,743 3,204 78,484 23,400 30,200 28,300 37,100 3,160 9,070 TRE MoNTRLY REvJEW Cotton production in the United States is estimated as bales larger than a year ago, despite the Government reduction of acreage. The 1933 crop is now estimated at 13,100,000 bales which compares with a 1932 crop of 13,002,000 bales and a 1928 to 1932 average of 14,666,000 bales. Tenth District production is placed at 1,261,000 bales this year against 900,000 bales in 1932. The season was favorable, abandonment light, and per acre yields heavier than usual. Production by states as estimated by the Crop Reporting Board of the United States Department of Agriculture: 2 I 5,ooo For Harvest Nov. 1 Dec. l 1933 1932 Oklahoma.____ 2,932,000 3,123,000 Missouri.......... 337,000 390,000 New Mexico... 84,000 112,000 PRODUCTION (bales) Indicated Final Nov. 1 Oct. 1 1933 1933 1932 1,250,000 1,175,000 1,084,000 223,000 220,000 307,000 83,000 73,000 72,000 Three states ___ 3,353,000 3,625,000 Tenth District ........................ United States. 30,036,000 37,589,ooo 1,556,000 1,468,000 1,463,000 1,261,000 1,195,000 900,000 13,100,000 12,885,000 13,002,000 ACREAGE REMAINING Livestock Marketings of cattle and calves were, due to low prices and improved pastures and ranges late in the season, delayed this year and the movement of grass cattle did not reach its peak until October. Also October receipts included a more liberal supply of finished corn-fed beeves than usual. Arrivals at the six principal market centers of this District, although the largest for any month since October, 1930, fell short of the ten-year average October volume. Receipts of cattle were 85 per cent and calves 93 per cent of normal. Weighty cattle were discriminated against and values declined 75 cents to '$1 per hundredweight to the lowest levels since 1906. Other classes were off I 5 to 50 cents per hundredweight, with feeders the lowest since 1911 and grass cattle the lowest of the present century at the close. The Kansas City top for the month of '$6.75 compares with $9.10 in October, 1932. Receipts of hogs at the six market centers, including those shipped direct to packers' yards, were lighter than usual and 10.7 per cent under a year ago. Quality was good, on the whole, and average weights were somewhat heavier than last year. Receipts increased and values declined as the month advanced. Prices dropped sharply from a top of $5.10 per hundred pounds October 4, the best in two years, to $4.05 at the close. The average for the month, although somewhat higher than a year ago, was otherwise the lowest since 1899. Last year values slumped in October from '$3.85 the forepart of the month to $3. I 5 at the close. Arrivals of sheep and lambs, although seasonally the heaviest for any month since last October, were 3.7 per cent lighter than a year ago, the smallest for the month since 1921, and equal to but So per cent of the ten-year average. Prices under- Cattle Kansas City.... - ........ Omaha.. St. Joseph-------·----Denver Oklahoma City.___ Wichita_ 217,789 183,226 52,810 57,7 11 27,926 25,228 5 went frequent and sharp fluctuations, closing at about the same or slightly higher levels than a month ago. The top for fat lambs was $7.50 per hundredweight, which compares with $5.55 in October, 1932. FEEDING: Below normal shipments of cattle, and above normal shipments of calves characterized the seasonal expansion in the country movement of stocker and feeder cattle and calves from four Tenth District markets in October. The outgo of cattle was 15.3 per cent in excess of last year's numbers but, with that exception, the smallest for any October in recent years and 30 per cent short of the ten-year average movement. In only two years, 1932 and 1930, has the outgo of calves been larger. Shipments of stocker and feeder cattle from all markets into the corn belt states during October, although considerably larger than the small shipments of October, 1932, were, according to the records of the Department of Agriculture, the third smallest for the month in fifteen years. The movement from July to October, inclusive, was the smallest in fifteen years or longer, and 10 per cent less than in 1927, the next lowest total. Prices are 7 5 cents to f,1 lower than a year ago and the lowest in over twenty-five years. Feed grains are considerably higher than a year ago. Feeder sheep and lambs met a broad outlet and, with a large percentage of market offerings classified as feeders, the countryward movement was the largest for any month since October, 1931. Shipments from four markets were 8.8 per cent above last year but exceeded by the totals for the like month of the years 1922 to 1931, inclusive. IN THE RANGE AREAS: According to the Division of Crop and Livestock Estimates, range and pasture feeds and hay and feed crops are short in the range states, and winter purchases of supplemental feeds will be necessary in some areas. Wheat pastures need rain and furnish scant grazing. Cattle are in fair condition with a few thin cattle in dry areas. Marketing has been restricted where feed and finances permit holding for better prices. Sheep are going into the winter in below normal condition, with flocks carrying a large proportion of old ewes. The bulk of feeder lambs have been moved from northern areas and the southern movement is getting under way. A large number of ewe lambs have been held for replacement. Feeding operations in Colorado, western Kansas, and western Nebraska are less extensive than last year. Meat Packing As indicated by the num her of meat animals purchased by packers at the six principal market centers of the District, direct purchases of swine included, Tenth District slaughter of cattle and calves was substantially larger, and of hogs smaller in October than in either the preceding month this year or the corresponding month last year. More cattle and calves were OCTOBER MOVEMENT OF LIVESTOCK IN THE TENTH DISTRICT RECEIPTS STOCKERS AND FEEDERS PURCHASED FoR SLAUGHTER Calves Hogs Sheep Calves Cattle Hogs Sheep Cattle Calves Hogs Sheep 107,449 1,501 53,808 •192,289 94,462 27,009 83,852 20,649 *166,251 149,785 3 1 ,555 216,062 30,268 11,225 1,057 86,463 107,817 143,900 126,455 87,900 19,043 75,35 2 103,486 15,030 5,916 23,541 31,516 103,922 114,732 15,964 6,392 77.676 324 2 10,718 3,260 288,146 17,678 534,634 341 14,315 2,319 49,973 3,074 34,397 00 21,460 6,984 14,912 25,897 4,283 5,3 5,93° 2 8,103 32,089 5,899 8,976 3,169 9,404 4,4 19 October 1933._____ 564,~ 124,911 September 1933____ 370,575 58,454 October 1932·-·---492,927 119,429 10 Months 1933.....-. 3,383,027 537,080 10 Months 1932_ ...... 3,460,223 523,453 *Includes 106,594 hogs shipped direct to 558,880 1,015,166 220,175 47,410 3,223 429,705 241,477 2,034,542 888,209 92,779 12,231 9,332 200,217 210,505 625,768 1,053,829 191,019 47,761 2,394 395,100 190,968 9,442,273 7,102,785 735,577 132,421 87,719 1,139,344 1,904,421 7,991,807 7,807,696 807,398 127,351 44,226 1,127,529 1,738,853 packers' yards. September totals include Government purchases of pigs. 57,502 451,928 337,96o 328,102 1,920,200 340,663 47,047 53o,575 344,8 I 5 8,433,320 3,454,o93 321,768 6,635,695 3,883,671 41,303 6 THE MONTHLY REVIEW purchased during the month than in any month since September, 1930, or any October since 1927 although the totals for the month were 10 per cent below the ten-year average. Hog slaughter declined 14.8 per cent as compared to October, 1932, was about I 5 per cent below normal, and the lightest for the month in eight years. Total purchases of sheep and lambs were 3 per cent larger than one month earlier, o.8 per cent less than a year ago, and 5 per cent below normal. The Department of Agriculture reported the October:slaughter of meat animals under Federal inspection as larger for all classes than in September, Government purchases of hogs excluded, and, hogs excepted, larger than a year ago or the five-year average for October. Totals of the various classes of livestock slaughtered under Federal meat inspection are shown _in the following in thousands of. head: Oct. 10 Mos. Oct. Sept. Oct. 1933 1933 1933 193 2 5-Yr.Av. Cattle................ 861 821 694 790 7,157 409 4,081 Calves·--··········· 455 405 389 *Hogs ............-3,058 3,038 3,605 3,687 38,195 1,581 14,608 Sheep ......... ·-···· 1,668 1,609 1,601 *Does not include Government purchases. Mos. 10 Mos. 1932 5-Yr.Av. 6,431 6,817 3,788 3,876 36,883 37,213 15,246 13,443 IO Poultry and Dairy Products Eggs advanced 4 cents per dozen in October but poultry and butterfat prices closed virtually unchanged. Kansas City receivers paid slightly higher prices for butterfat than a year ago, but eggs were 3 cents per dozen and poultry 2 cents per pound lower. Production of butter in the United States is estimated as 7 per cent larger in October than in the like month last year and present storage stocks are exceptionally heavy. The recently organized Dairy Marketing Corporation has commenced the purchase of a part of this surplus for relief organizations. The number of laying hens on farms is slightly larger than a year ago, but late hatchings and neglected flocks have resulted in decreased offerings of fresh eggs. Market receipts of fresh eggs in September were the lightest for that month in seventeen years, with available returns indicating an October production about 10 per cent less than a year ago. Receipts of dressed poultry at four big markets from January I to November I were approximately 12 per cent greater than in the like period last year. Reports indicate a decline in turkey production this year, and November I cold storage holdings, although 60 per cent larger than a year ago, are 44.6 per cent short of the five-year average. Competitive meats, however, are in larger supply and present wholesale prices of turkeys are about 3 cents under a year ago. Cold Storage Holdings United States cold storage holdings of beef, mutton, and poultry increased by somewhat less than the usual seasonal amount in October. Holdings of all other commodities were reduced, as usual, with the out-movement of pork, lard, miscellaneous meats, and eggs substantially heavier and that of butter and turkeys somewhat lighter than a year ago or normally. The removal of cheese was slightly greater than a year ago but below the average. Storage stocks of these commodities as of November I were, with but one exception, lamb and mutton, larger than a year ago. Stocks of lard and butter as of that date were particularly heavy, being 127.9 and 68.2 per cent, respectively, in excess of the five-year average. Holdings of beef were I 1.7, pork 17.6, and cheese 17.2 per cent above the average and those of lamb and mutton were 32.4, poultry 8.2, miscellaneous meats 8.5, and eggs 2.7 per cent below the average. Cold storage holdings in the United States on November 1, with comparisons, as reported by the Department of Agriculture: Nov. 1 *Nov. I *Oct. I Nov. I 1933 1933 193 2 5-Yr.Av. Beef, l b s _ _ _ _ _ _ _ _ 59,067 51,017 36,036 52,880 Pork, lbs............................................... 493,094 628,965 433,548 419,162 Lamb and mutton, lbs....................... 2,512 1,888 2,974 3,718 Poultry, l b s _ _ _ _ _ _ _ _ 59,631 50,177 54,989 64,979 **Turkeys, lbs ....... _ _ _ _ _ _ 1,614 2,769 1,033 2,915 Miscellaneous meats, lbs____ 50,213 64,745 37,041 54,869 58,741 Lard, lbs ......· - - - - - 133,850 192,502 34,410 Eggs, case.,________ 5,178 7,466 3,225 5,386 Eggs, frozen (case equivalent).......... 2,350 2,662 2,123 2,349 Butter, creamery, lbs ...... _ _ _ _ 160,390 174,713 66,828 95,384 Cheese, all varieties, lbs..................... 109,6o5 I 13,131 78,274 93,5 1 9 *Subject to revision. **Included in Poultry. (ooo omitted.) Holdings of apples, pears, and frozen and preserved fruits were much smaller on November I than one year ago or normally. Petroleum Production estimates of the American Petroleum Institute indicate that the fields of this District did not produce as much crude oil in October as they were entitled to under Federal restrictions. Daily average production for the District totaled 676,000 barrels for the month as against 761,000 in September, 550,000 in October, 1932, and a Federal allotment of 684,850 barrels. For the nation, however, average production totaled 2,393,000 barrels with allowables placed at 2,338,500 barrels. Gross and daily average production figures follow: GROSS PRODUCTION *Oct. 1933 Sept. 1933 Barrels Barrels Oklahoma. _ _ _ __ 15,126,000 16,7u,ooo Kansas ........ _ _ _ _ __ 3,493,000 3,838,000 Wyoming.. _ _ __ 946,ooo 953,000 Colorado_ _ _ _ _ __ 75,000 73,000 New Mexico _ _ _ __ 1,302,000 Total five states .... - - - 20~942,000 22,827,000 Total United States.................... 74,180,000 78,186,000 DAILY AVERAGE PRODUCTION *Oct. 1933 Sept. 1933 Barrels Barrels 488,000 557,ooo Oklahoma · - - - - - - Kansas .... _ _ _ _ _ __ 113,000 128,000 Wyoming.. _ _ _ _ _ __ 31,000 32,000 Colorado_ _ _ _ _ __ 2,000 2,000 New Mexico _ _ __ 42,000 42,000 Total five states .... _ _ _ _ 676,000 Total United States.................... 2,393,000 *Estimated, American Petroleum Institute. 761,000 2,606,000 Oct. 1932 Barrels 12,014,000 2,909,000 1,044,000 89,000 959,ooo 17,015,000 65,219,000 Oct. 1932 Barrels 388,000 94,ooo 34,ooo 3,000 31,000 550,000 2,104,000 With winter approaching, accompanied by a seasonal decline in motor fuel consumption, the Federal Oil Administration notified producers November 20 that additional production restrictions would go into effect December I. Daily average allowables for the month were allocated in part as follows: Texas 880,000, Oklahoma 458,000, California 450,000, Kansas 112,000, New Mexico 41,200, Rocky Mountain states 36,300, and the United States 2,210,000 barrels. The September 29 posted prices for mid-continent crude oil ranging from 76 cents to $1.08 per barrel, on a per gravity basis, are still in effect. Prices of refined products have shown but fractional variations in recent weeks and are firm. Refinery operations showed a slight decline for the month, but 7 THE MONTHLY REVIEW daily average runs of crude oil to refinery stills on November I were substantia1ly larger than one and two years earlier. Additions to gasoline stocks have been large in recent weeks and inventories are reported heavy. Although there has been a substantial increase in field activity in the United States the past two months, both in the number of wells completed and the number of rigs up and wells drilling, the improvement in this District has been comparatively slight. The figures for the District and the United States follow: TENTH DISTRICT Comple- New Protions duction Oct. 1933 ...... 146 40,815 Sept. I 933 ..... 164 66,125 Oct. 1932 ...... 208 81,843 10 Mos. 1933 1,366 530,310 10 Mos. 1932 1,482 836,915 Rigs Up Drilling 733 723 863 UNITED STATES Comple- New Pro- Rigs Up tions duction Drilling 247,7°7 1,342 3,o43 220,692 2,878 1,274 1,246 191,978 3,0 57 9, 2 53 2, 247, 199 12,267 1,780,382 Bituminous Coal As estimated from the weekly reports of the United States Bureau of Mines, soft coal production at mines in the six coal producing states of the District showed the normal seasonal increase in October. Output was 22.4 per cent over that of September but fell 6.5 per cent short of the October, 1932, tonnage. Production for the calendar year to November 1 is estimated at 13,058,000 tons, or 710,000 tons below the output for the first ten months of 1932. The estimated tonnage figures for October, with comparisons, are here shown by states: Colorado·---····-·······---Kansas .... _ _ _ _ _ __ Missour·...._ _ _ _ _ _ __ New Mexico_ _ _ _ _ __ Oklahom _ _ _ _ _ __ Wyoming _ _ _ _ _ _ __ *Oct. 1933 Tons 636,000 200,000 302,000 95,000 225,000 485,000 Sept. 1933 Tons 582,000 147,000 220,000 94,000 169,000 376,000 Oct. 1932 Tons 642,000 224,000 378,000 124,000 223,000 487,000 Total six states______ 1,943,000 1,588,000 2,078,000 Total United States._____ 29,656,000 29,500,000 32,677,000 *Estimated from the weekly reports of the United States Bureau of Mines. Zinc and Lead With Tri-state operators restricting output the closing weeks of October, shipments of lead ore from the mines in Missouri, Kansas, and Oklahoma during the five weeks ended November 4 declined 26.4 per cent as compared to the preceding five weeks. Zinc ore shipments, however, increased 4.9 per cent. Compared to the five weeks ended November 5, 1932, zinc ore shipments were 10.2 per cent larger and lead ore shipments more than double. Tonnage and value of zinc ore and lead ore shipments follow: ZINC ORE Tons Value 22,713 t, 704,103 223,479 7,209 14,260 46o LEAD ORE Tons Value 2,787 t, 148,010 926 48,925 210 II,010 S Weeks ended Nov. 4, 1933 ..... 30,382 $941,842 S Weeks ended Sept. 30, 1933.._. 28,952 920,773 5 Weeks ended Nov. S, 193 2··-· 27,580 496,969 44 Weeks ended Nov. 4, I 933 ..... 226,318 5,987,799 44 Weeks ended Nov. S, 1932 .._. 137,657 2,441,106 3,9 23 t, 207,945 281,439 5,333 61,054 1,899 31,488 1,448,806 682,607 19,439 Oklahom Kansas .... Missour' Prices of zinc ore, which held steady at $31 per ton for eight consecutive weeks, declined to $28. 50 per ton in the week ended November 4. This price compares with the 1933 high of $35 and the prevailing price a year ago of 'l,17 per ton. Lead ore prices suffered their severest setback since 1930 during the third week of October, slumping $10 per ton from the year's high. Half of this loss was recovered the following week with prices closing at $50 per ton as against $32.50 a year ago and the low this year. Lumber RETAIL: Sales of lumber by 156 retail lumber yards in the Tenth District increased 11.8 per cent in October as compared to September and o.8 per cent as compared to October, 1932. Dollar sales of all materials were 19 and 29.9 per cent, respectively, larger than one month or one year earlier. Lumber inventories declined 2.5 per cent during the month and stocks on hand October 31 were 0.9 per cent smaller than c;m the like date last year. Collections in October amounted to 29 per cent of amounts outstanding September 30. This ratio compares with 23 per cent reported for September this year and October last year. The comparative figures in percentages of increase or decrease follow: October 1933 Compared to September 1933 October 1932 Sales of lumber, board feet ...... _ _ _ _ _ II.8 o.8 Sales of all materials, dollars........ _ _ _ _ 19.0 29.9 Stocks of lumber, board fee,.___ __ _ _ - 2.5 - 0.9 Outstandings, end of mont,.______ 2.7 - 7.0 Reports to the National Lumber Manufacturers Association reflect an increase in national lumber production for the week ended N ovem her 4 over the corresponding week last year of 31 per cent, with orders received 36 per cent, and shipments I per cent larger. For the forty-four weeks output showed an increase of 25 per cent, orders an increase of 16 per cent, and shipments an increase of 13 per cent over the like fortyfour weeks of 1932. Building Building operations in seventeen Tenth District c1t1es, as indicated by the number of permits issued and estimated construction costs, although showing increases for October over September this year and October last year, continue light. Less than one-half of the usual number of permits were issued during the month, and estimated expenditures totaled but '1,878,254, or 12 per cent of normal. BUILDING PERMITS IN TENTH DISTRICT CITIES PERMITS EsTIMATED CosT 1933 1932 1932 1933 Albuquerque, N. M 25,6o7 t, t, JO 58 51,45 1 28 Cheyenne, Wyo ................... ·-····· 2,6o7 15,655 17 Colorado Springs, Colo..-........... 13,810 9,615 34 44 294,557 Denver, Colo ....... 322 232,56o 347 Joplin, Mo ......... 16 12 5,500 7,935 28 15,050 Kansas City, Kans .............·-····· 56 22,495 Kansas City, Mo 102,800 108,400 JOO 142 29,4 13 41,981 113 Lincoln, Nebr.·-··························· 47 Oklahoma City, Okla................. 81 71,438 92,345 79 Omaha, Nebr 63,6o8 116 178,467 71 Pueblo, Colo 22 9,151 4,875 39 Salina, Kans 8,825 11,885 15 7 Shawnee, Okla. 6 1,250 1,250 3 26 St. Joseph, Mo 6,195 19 59,845 Topeka, Kans 10,6o5 14,715 43 37 60 17,169 36,048 Tulsa, Okla.·-······························· 55 60 Wichita, Kans ............................. 37,812 15,672 58 Total 17 cities, October.............. Total 16 cities, 10 months·----··· ---1,212 9.636 979 10,347 t, 878,254 7,070,036 f, 742,337 u,291,046 8 THE MONTHLY REVIEW Business Conditions in the United States By the Federal Reserve Board ... COIT P<JICtlff "'° 10,0 INDUSTRIAL PRODUCTION 130 llO ,A. 120 no IOO - 120 \ / 110 ~ A \ 90 I '\.. ,0 192'1 .. 1931 193? 90 80 60 ~ 1926 I00 70 \. r- ✓ 60 so I\ 'I""\. 80 - Volume of industrial output continued to decline in October. Factory employment and payrolls, after increasing continuously for six months up to the middle of September, showed Ii ttle change from then to the middle of October. There was an increase in the volume of construction undertaken, reflecting the expansion of public works. 5 Index number of industrial production, adjusted for seasonal variation. (1923-1925 average=100.) Latest figure, October, 77. Indexes of factory employment and payrolls, without adjustment for seasonal variation. (1923-1925 average=-100.) Latest figures, October, employment, 75.8; payrolls, 57.4. PRODUCTION AND EMPLOYMENT: Volume of output in basic industries decreased in October as compared with September, contrary to seasonal tendency, and the Board's seasonally adjusted index declined from 84 per cent of the 1923-1925 average to 77 per cent. This compared with an index of 67 in October of last year and of 60 at the low point in M arch of this year. At steel mills activity declined sharply between the middle of October and the first week in November, but in the following three weeks showed little change. In the automobile industry, output has been curtailed in recent weeks in preparation for new models. For the first ten months of the year the number of cars produced was 50 per cent larger than in the corresponding months of 1932. Output at shoe factories showed a seasonal decline in October as compared with September, and there was some decrease in activity at cotton and wool textile mills, contr,ary to seasonal tendency. At meat packing establishments activity declined sharply from the unusually high rate prevailing in September, which was due to the fact that in that month a large number of pigs purchased by the Federal Government were handled. Total number of employees at factories, excluding canning establishments, showed little change from the middle of September to the middle of October. At canning establishments there was a decline of a seasonal character a.l).d the Board's index, which includes this industry, showed a slight decrease. Value of construction contracts awarded during October and the first half of November, as reported by the F. W. Dodge Corporation, showed a considerable advance over the preceding six-week period, reflecting a growing volume of public works. DISTRIBUTION: Shipments of commodities by rail showed a somewhat larger decline between the middle of October and the middle of November than is usual at this season. Department store sales increased in October as compared with September by slightly less than the usual seasonal amount. PRICES: Wholesale prices, as measured by the weekly index of the Bureau of Labor Statistics, declined from 71.3 per cent of the 1926 average in the first week of October to 70.4 per cent in the third week, and then advanced to 71.7 per cent in the third week of November, a level 20 per cent above the low point of last March. Following declines early in October, prices of cotton, grains, lard, rubber, tin, and silver increased considerably, while cattle prices continued to decline and prices of hogs showed little change. Indexes based on three month moving averages of F. W. Dodge data for 37 eastern states, adjusted for seasonal variation. (1923-1925 average=100.) Latest figures, October, total 35, residential 12. MILLION3 or DOUAP.5 MIW~C,Otl.UI\S ll:1JO RrsiRVt BA.'IK CRWIT 1,1XXJ 35(X) f - - - + - - - f - - - + - - - i - t - - ~ ~ :lOOO f - - - + - - - 1 - - - - - l - - - - i--ff--~3CCO 2500 i - - - - + - - - i - - - - + - - - - - : : - i1-t-----iH Wednesday figures for 12 Federal reserve banks. Latest figures are for November 15. FOREIGN EXCHANGE: The value of the dollar in the foreign exchange market fluctuated around 67 per cent of its gold parity during the latter part of October, declined during the first part of November to 59 per cent on November 16, and on November 22 was 61 per cent. f1: BANK CREDIT: Between October 18 and November 15 there was little change in the reserves of member banks, which continued to be more than $800,000,000 in excess of legal requirements. Purchases of United States Government securities by the reserve banks declined gradually from $25,000,000 during the week ending October 25 to $2,000,000 during the week ending November 15. For the four-week period as a whole the banks' holdings of United States Government securities showed an increase of $57,000,000 while holdings of acceptances and discounts for member banks showed little change. Total loans and investments of member banks increased by $90,000,000 during the period, reflecting a growth of '$150,000,000 in holdings of United States Government securities, of '$25,000,000 in holdings of other securities, and of $30,000,000 in all other loans, while loans on securities declined. Net demand deposits declined by $70,000,000 during the period, while Government deposits increased by $180,000,000. R ates on acceptances and yields on short term United States Treasury bills and certificates rose slightly from mid-October to November 20, and yields on Government and high grade corporate bonds advanced somewhat. Discount rates of the Federal Reserve Banks of Boston, San Francisco, and Philadelphia were reduced from 3 per cent to 2,½ per cent on November 2, 3, and 16, respectively.
@FedFRASER