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THE MONTHLY REVIEW Of Agricultural, Industrial, Trade and Financial Conditions in the Tenth Federal Reserve District FEDERAL Vol. 20 G RESERVE KANSAS BANK CITY, Mo., ENERAL business conditions in the Tenth Federal Reserve District improved somewhat during October and were generally better than in October last year. Retail and wholesale distribution expanded more than the usual seasonal amount, retail trade increasing 8.1 per cent and wholesale trade 6. 5 per cent, whereas both declined last October. Debits by banks to individual accounts declined 3.4 per cent during October but were 17 per cent above a year ago. Building activity, hampered by unfavorable weather, recorded a seasonal decline and continued at a relatively low level. Farm purchasing power advanced two points from mid-September to mid-October, the ratio of prices received by farmers to prices paid standing at 89 per cent of the prewar level as compared to 81 per cent a year ago. Flour production increased, although demand lessened and flour prices lowered. The production of crude petroleum and bituminous coal was larger during October than in September or October last year, coal production increasing by more than the usual seasonal amount. Meat packing operations were increased seasonally but were smaller than in October, 1934, when many animals were slaughtered for the Gove~nment account. Receipts of wheat, oats, rye, and barley declined during the month but receipts of corn and kafir increased. Receipts of oats and barley exceeded the ten-year average for the month but all other grains were below, receipts of corn being the lightest for any October since 1920. All grain prices worked lower during the month. Marketings of live stock, although below the average for the month, increased during October but were below the heavy marketings of a year ago, occasioned by the drought. Live stock returns were considerably better than a year ago. Indications on November I were for decreased lamb feeding operations and for increased cattle feeding operations during the winter of 1935-1936. Hay and forage crops were plentiful except in a few drought areas. The condition of ranges and pastures was uniformly better on November I than last year, and cattle and sheep were going into the winter in much better condition than in 1934. October weather conditions in most of the District were not favorable for the development and maturity of late crops. An early frost in the first week of the month did considerable damage to late corn, grain sorghums, potatoes, dry beans, and cotton, and an unusually large part of the corn and grain sorghums crops was reported as harvested for fodder and silage. Rains and muddy fields delayed harvesting in some areas. Winter wheat already sown was up and making good pasture generally in the eastern part of the District where beneficial rains were received. Planting was delayed in some areas by excessive rains and in the western drought areas by continued subsoil moisture deficiencies. Thia Copy Released For Publication In OF DECEMBER 1, KANSAS CITY No. 1935 12 BUSINESS IN THE TENTH FEDERAL RESERVE DISTRICT Percentages of Increase, or Decrease (-), for October 1935 over September 1935 and October 1934 and for the first ten months of 1935 over the like period in 1934. 10 Months 1935 Oct. 1935 compared to compared to Banking Sept. 1935 Oct. 1934 10 Months 1934 10.8 Payments by check, 29 cities .................. - 3.4 17.0 Federal Reserve Bank clearings.............. 13.7 10.8 9.7 Loans, 52 member banks ... _..................... 2.1 1.0 Investments, 52 member banks.............. - 1.0 8.8 Adjusted dem. deps., 52 member banks 1.9 20.6 Time deposits, 52 member banks·--······· 0.3 - 1.0 Savings deposits, 45 selected banks._ ..... - 0.7 6.7 Savings accounts, 45 selected banks...... 0.1 1.8 Distribution 0.1 10.3 Wholesalers' sales, 5 lines combined ...... 6.5 6.1 11.6 8.1 Retailers' sales, 31 department stores... . 15.6 L~m?er sales, 142 _retail yards................ 19.0 Life 111surance, wr1tten ...-......................... 14.3 - 7.3 Construction - 0.4 Building contracts awarded, value..·--··· - 7.6 5-7 61.8 Residential contracts awarded, value.... - 3.9 82.7 Building permits in 17 cities, value........ -42.8 Production 1.9 Flour ........................................................ . - 2.5 6.5 6.3 Crude petroleum.-.................................... . 9.1 2.7 16.3 19.6 Soft coal...................................................... 53.o 22.0 Zinc ore (shipped) Tri-State district...... 3.3 73- 2 21.0 213.1 Lead ore (shipped) Tri-State district ... . 19.8 0.9 41.6 37.o Cement·- ··············,·································· .... Grain receipts, 5 markets Wheat·--···············································-···· -49.6 Corn ..........................................................38.6 Oats·--························································· -16.8 Live stock receipts, 6 markets 1 9·3 Cattle......................................................... . 30.0 Calves·-······················································· 18.1 Hogs ............................................................ Sheep.......................................................... 46.9 Horses and mules ...................................... - 1 9.7 Meat packing, 6 markets Cattle .......................................................... 1 3·9 Calves·-··················································•···· Hogs ........................................................... . Sheep .......................................................... st0 cker ao d feeder shipments, 4 markets ~:r!~e~.·~~.::::.::::::::::::::::::::~:::::::::::::::::::::::::: ~~:} Hogs ............................................................ Sheep......................................................... . l I 1.2 - o.8 -80.6 -59.3 76.6 116.2 1 5.5 -34.6 - -33.5 -59. 2 -22.2 -43.5 -41.7 -65.0 -13.6 - 3.0 -18.8 -43. 1 -6I.7 -58.8 43.6 - 1 5,7 F.ven 2.8 -6o.5 -33.3 19.8 158.0 Member Bank Operations Total loans and discounts of fifty-two reporting member banks in leading cities of the District increased $4,473,000, or 2.1 per cent, from October 9 to November 6 and were $2,089,ooo, or 1.0 per cent, greater than on November 7, 1934. Loans on securities and "all other" loans increased during the fourAfternoon Newepapers, November 30. '2 THE MONTHLY REVIEW weeks' period, but loans on securities were $8,976,000, or 16.0 per cent, under the comparable date last year. Total investment holdings decreased $4,384,000 in the four weeks but were $33,647,000 larger than on November 7, 1934, the increase over last year being principally in obligations fully guaranteed by the United States Government, holdings of which were nearly three times as great on November 6, 1935, as on November 7, 1934. Adjusted demand deposits (the total amount of demand deposits other than United States Government and bank deposits, minus the amount of cash items reported as on hand or in process of collection) increased $8,245,000, or 1.9 per cent, from October 9 to November 6 and were $76,189,000, or 20.6 per cent, greater than on November 7, 1934. Time deposits increased slightly in four weeks but decreased 1.0 per cent in fifty-two weeks. United States Government deposits were 16.2 per cent less than four weeks earlier and 38.4 per cent less than on the corresponding date last year. Bank deposits increased slightly during the month and approximately 18 per cent during the year. The principal resource and liability items of the consolidated weekly condition statements ~f the fifty-two reporting banks for the three dates of comparison: Oct. 9, 1935 $632,21'>,ooo 213,000,000 46,018,000 166,98:,000 4 l 9,2 16,r,00 247,018,000 Nov. 7, 1934 5'.!,037,000 118,520,000 1o7,997,ooo 445, 244,000 145,316,000 10,036,000 51,990,000 120,208,000 104,341,000 436,999,ooo 14,234,000 118,000,000 95,897,000 II,973,ooo 147,219,000 16,285,000 357,449,000 133,000 356,087,000 136,000 302,406,000 l 51,000 Nov.6.1935 Loans and investments-totaL l.oans and discounts-totaL .. _. Secured by stocks and bonds All other loans and discounts Investment~- total..·-················· U. S. securities direct.............. Obligations fully guaranteed bv the U. S. Go\·ernment.. Oth~r securities.........·-····- ······ Reserve with F. R. bank-.- ......... Demand deposits-adjus ted ...... Time deposits ............................. U. S. Government deposits.-..... Inter.bank deposits Domestic banks..·--··· ·············· Foreign banks .......................... $632,3c5,ooo 217,473,000 47,088,000 170,.38 5,000 414,832,000 244,275,000 145,4o5,ooo $596,569,000 215,384,000 56,064,000 I 59,320,000 381,185,000 248,951,000 369,055,000 Federal Reserve Bank Operations Bills discounted for member banks by the Federal Reserve Bank of Kansas City and branches increased in the four-weeks' period ending November 6, but amounted to only $910,676 on that date. Holdings of bills purchased continued to be in small volume. Industri al advances, at $1,137,515, were enlarged 3.1 per cent as compared to October 9 and were substantially greater than on November 7, 1934. Memher banks' reserve deposits increased $2,677,910, or 1.6 per cent, from October 9 to November 6 and were i1 J,544,648, ot 8.5 per cent, larger than on November 7, 1934. Federal reserve note circulation increased $2,327,850, or 1.7 per cent, in four weeks to $q6,fi84,660, a new high record except for the reporting dates of March 8 and 15, 1933. The principal resource and liability items of the weekly condition statements of the Federal Reserve Bank of Kansas City and branches for the three dates of comparison: Jov. 6, 1935 Oct. 9, 1935 Total reserves ....... ·-····················· $207,724,524 $205,809,978 Bills cliscounted·--·············-········· 910,676 403,791 Bills purchased ....................... _.... 126,252 126,581 Industrial advances................... 1,137,515 1,102,982 U. S. securities............................ 106,844,100 106,844,200 Total bills and securities·-········· 109,199,643 108,658,554 Total resources.... ...................... .353,714,552 348,462,035 F. R. ll()tes in circulation ........ _. 136,684,660 134,356,810 Member banks' reserve deposits 17.1,441,435 170,763,525 The discount rate of the Federal Reserve Bank of Kansas City, of paper and all matwities, remains unchanged at 2 per cent. Nov. 7, 1934 $194,941,213 353,171 l 53,857 219,870 91,844,200 92,)71,098 316,685,749 I 17,965,9·25 159,896,787 on all classes Reserve Bank Clearings Following two months of recession, the dollar volume. of check collections through this bank and branches rose durmg October to $956,078,000, a new high since Decemher, 1929, and 10.8 per cent larger than in October, 1934. The num~er of checks h:mctled increased 3.5 per cent as compared with October, 1934. Clearings for the first ten months of 1935 compared with the corresponding period last year show an increase of 3.6 per cent in the number of items handled and 9.7 per cent in the amount. Check collections through the Federal Reserve B~nk of Kansas City and branches at Omaha, Denver, and Oklahoma City: ITEMS October·-·····-· ... September........ Ten months ...... 1935 5,899,3o3 5,376,451 53,109,310 1934 5,698,214 4,8 75,082 51,283,914 AMOUNT 1934 1 935 $ 956,078,000 840,919,000 8,423,833,000 $ 862,917,000 797, 2 92 , 000 7,675,870,000 Bank Debits Dehits to individual accounts by reporting banks in twentynine cities of the Tenth District totaled $952,541,000 during the four-weeks' period ending October 30. This amount, although 3.4 per cent smaller than in the preceding four weeks ending October 2, represents an increase of 17.0 per cent over the corresponding four weeks in 1934. The total of payments hy check for the first forty-three weeks of 1935 exceeded the total for the same period last year by 10.8 per cent. PAYMENTS BY CHECK FouR WEEKS ENDED Oct. 31, 1934 Oct. 30, 1935 8,823,000 Albuquerque, N. J.\,f.._. ···-·········· 1, 9,785,ooo $ 3,382,000 2,839,000 Atchison, Kans.·---···········-·····... 19,181,oco 20,279,000 B artlesvi Ile, Okla.·-•···················· 4,511,000 6,096,000 Casper, Wyo.·---························· Cheyenne, Wyo........................... 5,528,000 7,193,000 Colorado Springs, Colo.. -........... 9,587,ooo 13,173,000 Denver, Colo ............................... II7,662,ooo l 50,206,000 6,887,000 Enid, Okla ................................... 8,726,000 2,081,000 2,120,000 Fremont, Nebr.·- -···········-···--·· Grand Jun~tion, Colo•.............. _ 2,448,000 3,377,000 Guthrie~ Okla ............................... 1,104,000 1,544,000 9,692,000 10,694,000 Hutchinson, Kans... ·-·············-· Independence, Kans... _ .............. 3,62 .1,".">00 1,948,000 6,672,000 Joplin, Mo._............................. .... 8,195,000 8,886,000 Kansas City, Kans •.................... 9,528,000 232,829,000 255,254,000 Kansas City, Mo.·-··-···············_ Lawrence, Kans .... _.................... 3,000,000 3,519,000 Lincoln, Nebr. 21,009,000 24,232,000 6,89.2,000 6,709,000 Muskogee, Okla•············-············ Oklahoma City, Okla ... _ ............ 62,517,000 83,221,000 Okmulgee, Okla ... 2,108,000 2,617,rx,-,o 109,973,000 Omaha, Nebr.............................._ 130,635,000 Pittsburg, Kans ........................... 3,091,000 3,096,oco 10,719,000 12,244,000 Pueblo, Colo·--····························· 6,025,000 Salina, Kans .................·-··········· . 7,545,000 23,221,000 25,205,000 St. Joseph, Mo.·-····· ···················· 13,348,000 II,775,000 Topeka, Kans.·-············- ············· 78,782,000 93,43 2 , 000 Tulsa, Okla.·-················-·········-··· 30,304,000 Wichita, Kans. ___ .. ·-················ 37,354,000 Total 29 cities, Total 29 cities, U.S. 270 cities, U. S. 270 cities, 4 weeks .. - .•.... $ 813,885,000 952,541,000 $ 8,801,836,000 43 weeks ...••·-·9,753,749,ooo 30,609,564,000 25,413,57:2,000 4 weeks.·--···· 43 weeks.·--··- 326,271,820,000 2 93, 759,389,ooo Per cent Change 10.9 -16.1 5.7 35.1 30.1 37.4 'J.7.7 26.7 1.9 37·9 39.9 10.3 -46.2 22.8 7.2 9.6 17•3 - 1 5-3 2.7 33.1 24.1 18.8 0.2 14.2 25.2 8.5 -11.8 18.6 2 3·3 17.0 10.8 20.4 II.I Savings Savings deposits at forty-five selected banks in leading cities of the Tenth Di!>trict decreased 0.7 per cent from October 1 to November 1 but were 6.7 per cent larger than on November 1, 1934. The number of depositors increased 0.1 per cent during the month of October and was 1.8 per cent greater than a year ago. .1 THE MONTHLY REvrnw Stores Reporting Kansas City ........ 4 Denver ......:.......... 4 Oklahoma City .... 3 Tulsa .................... 3 Wichita ................ 3 Other cifes .......... 14 RETAIL TRADE AT 31 DEPARTMENT STORES IN THE TENTH FEDERAL RESERVE DISTRICT AMOUNTS COLLECTED ACCOUNTS RECEIV.~BLE STOC"-5 (RETAIL) SALES STOCK TURNOVER Oct. 31, 1935 Oct. 1935 Oct. 1935 Year 1935 Oct. 31, 1935 October Year compared to compured to compared to compared to compared to Oct. 1934 Oct. 1934 Year 1934 Sept.30,1935 Oct.31 ,1934 1935 1934 1935 1934 Sept.30,1935 Oct.31,1934 Sept.1935 .26 2.91 2.20 17·9 12.2 2'2.0 I 1.0 - 9.6 18.5 5.8 .34 7.5 I.O 20.2 6.6 .29 2.98 2.85 .31 8.4 0.7 7.9 7.3 9·7 10.0 10.2 4.8 .39 .37 3-5 1 3.47 49.8 1.3 3.7 5.3 7-5 6.6 15 .0 .36 4.2 8.5 23.8 .37 J.49 3.42 9.9 7.3 45.5 8.o IO.I .30 2.77 2.72 .32 6.5 2.3 49.2 5.3 3.5 7.5 .26 2.46 2.41 6.8 - 1.0 10.3 .29 4.0 2.4 30.1 9.3 3.7 Total... ................... 31 I 1.6 6.1 .32 .29 2.90 2.65 - 1.3 7.2 NOTE: Pen·entage of collections in October on open accounts September 30, all stores reporting 45.8. Savings accounts and savings deposits reported by the forty-five banks: November 1, 1935... -.............................. . October 1, 1935....................................... . November 1, 1934................ ................. ... Savings Accounts 404,815 4o4,6o4 397,781 Savings Deposits f,124,800,924 125,700,677 I 16,945,539 Life Insurance Sales of new paid-for ordinary life insurance in the seven states whose areas or parts thereof comprise the Tenth District totaled $32,519,000 during October, an increase of 14.3 per cent over September but 7.3 per cent under sales in October, 1934. Sales for the first ten months of 1935 totaled $350,701 ,ooo as compared to $381,949,000 in the corresponding period in 1934, the decline for the year representing 8.2 per cent. Life insur;mce sales reported to the Life Insurance Sales Research Bureau by companies representing 90 per cent of the total legal reserve ordinary life insurance outstanding in the United States: Colorado................................ Kansas .................................. Missouri ............................... . Nebraska ............................ .. New Mexico......................... . Oklahoma............................. . Wyoming............................. . October 1935 f, 4, I 16,000 4,716,000 12,536,000 4,552,000 729,000 Seven states.... _.................... United States........................ 5,027,000 843,000 $ 32,519,000 501,850,000 September 1935 $ 3,680,000 3,923,000 II,892,000 3,479,ooo 622,000 4,196,000 648,000 October 1934 'I, 4,671,000 5,036,000 15,019,000 3,873,000 685,000 5,159,000 653,000 'I, 28,440,000 413,716,000 'I, 35,096,000 494,782,000 Trade RETAIL: Department store sales in the Tenth District, as reflected by the dollar volume of thirty-one reporting stores, expanded 8. 1 per cent during October, or slightly more than the usual seasonal amount, and were 11.6 per cent g1eatcr than in October, 1934, when sales recorded a contraseasonal decline of 4 per cent. Cumulative sales for the first ten months of 1935 exceeded the total for the corresponding period of 1934 by 6.1 per cent. Merchandise inventories were enlarged 7.2 per cent during October, or somewhat more than the normal seasonal increase, but were 1.3 per cent under the amount of stocks on hand at the close of October last year. Stores Reporting Dry goods_ ................ _.. _ 5 Groceries .. _.............. - .. - 5 Hardware·--·-··-·--···- 9 Furniture.....·--·-·--··-···· 4 Drugs______ 7 2 9·4 8.5 5.4 Collections same month last year 44.7. 7.9 Collection percentages on open accounts improved during the month, the ratio of collections during October to amounts receivable at the end of September being 45.8 per cent, as compared to the September ratio of 40.6 per cent and the October, 1934, ratio of 44.7 per cent. Collection percentages on installment accounts averaged 16.9 per cent in October, 14.1 per cent in September, and 16.0 per cent in October, 1934. The Bureau of Foreign and Domestic Commerce estimated that daily average sales of general merchandise in small towns and rural areas increased about 23 per cent from September to October and were ahout 17 per cent above October, 1934, with total sales for the first ten months of 1935 about 20 per cent above the comparable period last year. Daily average sales of variety stores in October were about 7 per cent greater than in September and about 2.5 pe!° cent greater than in October, 1934, with cumulative totals for the year to November r approximately the same as in the corresponding period in 1934. WHOLESALE: Wholesale distribution, as indicated by the combined dollar volume of five representative lines reporting to this bank, expanded 6. 5 per cent during October, more than the usual seasonal amount and in contrast to last year when sales declined I per cent during October. October sales increased 10.3 per cent over October, 1934, recording the fourth consecutive increase this year over the comparable month last year, and raising cumulative sales for the first ten months of 1935 to approximately the same level as in the corresponding period in 1 934. An analysis by individual lines showed sales increases over Septemher for all lines except groceries and increases over last October for all reporting hies without exception. Cumulative sales for the first ten man ths of 1935 as compared to the same period in 1934 showed increases of 2.6 per cent for hardware, 18.9 per cent for furniture, and 2.8 per cent for drugs, whereas sales of dry goods and groceries decreased 9.7 and 1.4 per cent, respectively. Stocks of merchandise for the five lines combined were approximately the same on October 31 as one month earlier and 4.4 per cent larger than on October 31, 1934. Stocks of groce1 ies, hard ware, and furniture were enlarged during the month, but stocks of dry goods and drugs declined. Compared to October 31, 1934, stocks of groceries, furniture, and drugs had increased, but stocks of dry goods and hardware had dec1eased. WHOLESALE TRADE IN THE TENTH FEDERAL RESERVE DISTRICT SALES OUTSTAND1NCS AMOUNTS COLLECTED Oct. 1935 Oct. 31, 1935 Oct. 1935 compared to compared to compared to Sept. 1935 Oct. 1934 Sept. 30, 1935 Oct. 31, 1934 Sept. 1935 Oct. 1934 4.3 6.-4 0.2 - 2.5 25.3 o.6 - 3.0 6.o - 0.7 10.3 17.2 11.7 1 3•3 2.2 2.7 I 5•9 5.9 3.0 n.5 32.6 2 3·5 II.I 26.7 7.I 10.8 8.3 7.8 4.4 II.6 18.0 STOCKS Oct. 31, 1935 compared to Sept. 30, 1935 Oct. 31, 1934 - 5.6 - 4.8 8.T 4•7 0.7 - 3.3 - I.O 219 1.8 13.0 THE MONTHLY REVIEW 4 Building Building activity in the Tenth District, as reflected by statistics of the F. W. Dodge Corporation, declined slightly during October and was less than in October, 1934, contrary to the trend in the country as a whole. Although the value of total building contracts awarded in the District was 79.2 per cent, and of residential contracts awarded 94.4 per cent, of the October average for the past five years, the value of total awards to November I this year was 5.7 per cent, and of residential awards 61.8 per cent, above the comparable period in 1934. The value of construction contracts awarded, as reported by the F. W. Dodge Corporation: TOTAL BUILDL G CO TRACTS AWARDED TENTH DISTRICT UNITED STATES 1935 1934 1935 1934 October--- ·····t, 7,512,567 f, 7,539,454 f, 200,863,700 f, 135,524,800 September ___ .. 8,127,734 3,852,763 167,376,200 110,219,200 Ten months .. _.. 63,694,234 6o,277,564 1,392,956,300 1,341,297,800 RF.SIDE TIAL CONTRACTS AWARDED TENTH DISTRICT UNITED STATES 1934 1935 1934 1935 October.----···· t, 1,658,451 f, 2,137,498 f, 55,100,300 1, 26,299,800 September.... _.. 1,725,555 696,348 41,810,800 17,871,600 Ten months...... 14,500,u7 8,963,535 394,06o,500 214,595,700 Reports from building departments of seventeen Tenth District cities likewise indicated a decline of building activity during October but showed an increase over last October of 16.1 per cent in the number of permits issued and 47 per cent in the estimatec:1 cost of construction. The number of permits issued during October was I I.I per cent above the October average for the past five years but the estimated cost thereof was only 58 per cent of the average. BUILDING PERMITS IN TENTH DISTRICT CITIES PERMITS ESTIMATED 1935 1935 1934 So f, 85,5'28 f, Albuquerque, N. M,·---· ..··-······ 67 42,070 48 29 Cheyenne, Wyo ......·-···--·····-······ Colorado Springs, Colo..-........... 59,844 44 34 299 Denver, Colo ........... - ......... -..... . 402,398 367 Joplin, Mo ......... _ _ _ __ 21 16,100 15 19,030 48 Kansas City, Kans ..... _···-······-· 35 286,6oo 203 187 Kansas City, Mo .... · -·--···-·····--· 142 165 Lincoln, Nebr...·---··-·..·---···--··· 5?.,7°2 Oklahoma City, Okla ................. 130 127 215,920 104 161,847 Omaha, Nebr....................·-·-···-1'25 16,827 Pueblo, Colo•.--···-··---··-····--49 47 17 15 13,460 Salina, Kans,-·-··-··-··-··-····.. ···· Shawnee, Okla..... - .................... .. 8 1,675 15 20 St. Joseph, Mo..___ ................... . 20 14,665 Topeka, Kan.,.__ __ 63 63 59,ogo 1'2.6 69 152,488 Tulsa, Ok Ia.·-············--················· 202 Wichita, Kans ............................. I I 5,939 II9 Total 17 cities, October.............. 1,667 1,436 Ten months.................... _............ 14,881 10,936 f, 1,716,183 '2.0,o53,758 CosT 1934 29,063 31,340 24,640 264,6o1 10,575 16,285 I 89,000 53,871 92,440 196,9n 10,655 5,075 18,850 25,300 33,945 55,2 35 109,161 1, 1,167,547 10,973,335 Lumber Retail sales of lumber at 142 reporting yards in the Tenth District increased 19 per cent in board feet from September to October and were 15.6 per cent larger than in October, 1934. Cumulative sales for the first ten months of 1935 exceeded the same period in 1934 by 22.9 per cent. Dollar sales of all materials were 15.2 per cent greater than in September and 22.7 per cent greater than last October. Stocks of lumber were approximately the same at the close of October as one month earlier and were 6.8 per cent larger than one year earlier. Collections during October averaged 40.9 per cent of amounts receivable at the close of the preceding month, as compared to the September ratio of 39.6 per cent and 39.0 per cent in October, 1934. October business at the 142 yards compared to September and to October, 1934, in percentages of increase: October 1935 compared to September 1935 October 1934 Sales of lumber, board feet ........ - - - 19.0 15.6 Sales of all materials, dollar 15.2 22.7 Stocks of lumber, board feet............................ 1.0 6.8 Outstandings, end of month........................... 5.6 20.5 According to reports of the National Lumber Manufacturers Association, lumber production in the United States for the year to November 2 was 21 per cent above production in the corresponding period in 1934. Shipments and orders booked to November 2 were about 3 per cent above the output for the same pe~iod and about 31 per cent above shipments and orders booked to November 3, 1934. Flour Milling Operations at Tenth District flour mills in October continued at approximately the same rate as in September, while production, owing to two more milling days, increased 6.5 per cent, the October total of 2,105,097 barrels being the largest monthly total since last October and representing 91.9 per cent of the October ten-year average. Compared to October, 1934, production decreased 2.5 per cent, but the total for the first ten months of 1935 showed an increase of 1.9 per cent over the corresponding period last year. Flour production at the principal milling centers of the District, as estimated from the weekly reports of southwestern mills to the Northwestern Miller: Atchison.-..................................... Kansas Ci tY·--····························· Salina ................................. _ ........ Wichita. ___ ................................... Outside.............................. _.......... Oct. 1935 Barrels 140,844 539,031 184,233 I 57,503 1,083,486 Sept. 1935 Barrels II3,264 479,167 185,536 178,540 1,019,676 Oct. 1934 Barrels 13z,721 524, 259 150,792 153,826 1,197,681 2, 159,279 Tota 1,976,183 2,105,097 6,023,6oo 5,6o3, 158 6,384,335 *United States·--····--·············--··· *Represents about 60 per cent of the total output in the United States. Flour buying slowed up considerably during October, southwestern sales dropping from 132. per cent of capacity in the initial week of the month to 85 per cent in the closing week. Buyers, despite the fact that the majority are not heavily stocked for future needs, watched a declining price trend, and only a few large orders enabled sales to attain the level which they did. Flour prices worled lower during the month, the price of clears breaking sharply in the closing week in an effort to stimulate sales. Millfeed demand was retarded by warm weather and continued good pasturage and millfeed prices fell, particularly shorts, which were offered more freely than bran. Grain Marketing Receipts of wheat, oats, rye, and barley declined from September to October at the five principal markets of the Tenth District, but receipts of corn and kafir increased. Arrivals of all grains except corn showed increases over October, 1934. Marketings of oats were the heaviest for any October since 1925, of rye and barley since 1930, and of wheat since 1932.. Corn receipts were the lightest for any October since 1920, in sharp contrast to last October, when they were the heaviest of record. Receipts of oats and barley exceeded the ten-year average for October by 68.o and 52.6 per cent, respectively, while wheat was 28.5, corn 61.3, rye 10.9, and kafir 61 .8 per cent under the ten-year average. 5 THE MONTHLY REVIEW October receipts of grain at the five markets: Wheat Bushels 981,450 Hutchinson .... Kansas City._. 4,131,200 Omaha ............ 1,614,803 St. Joseph.___ 657,6oo 690,000 Wirhita..·-······· Oct. 1935........ Sept. 1935 ...... Oct. 1934 ........ 10 Mos. 1935.. 10 Mos. 193+- 8,075,053 16,021,018 3,823,850 93,859,309 94,6o6,250 Corn Bushels 1,250 622,500 457,8oo 202,500 29,900 Oats Bushels 3,000 496,000 994,ooo 686,ooo 4,500 1,313,950 948,250 6,785,650 19,731,910 48,450,650 2,183,500 2,623,500 1,236,500 14,049,100 6,499,500 Rye Bushels Barley Bushels 15,000 103,6-.x> 3,000 129,6oo 424,000 Kafir Bushels 9,100 49,000 121,600 553,600 58,100 270,300 792,900 55,800 2,900 33,250 13,6oo 717,200 2,377,600 631,400 506,6oo 472,850 1,240,800 After advances in September, all grain prices except rye, which remained unchanged, showed net declines in October, with the decline extending into November. Cash grain prices at Kansas City for the dates indicated: o. 1 hard, dk. wheat, bu. o. 2 mixed corn, bu .... . No. 2 white oats, bu ...... . No. 2 rye, bu .................. . No. 2 barley, bu.·----····· o. 2 kafir, cwt---···-··-·· Nov. 15 Oct. JI Sept. JO Oct. JI Oct. 31 Oct. 31 193 2 1933 1 935 1935 1935 1934 t,1.03¼ f,1.05 f,1.07 ,, .98 ,, .84 f, .41¼ .67 .71 .78¼ .81¼ . .40 .23 .29¼ .29¼ .31¼ .55 .32 .16 .51¼ .52 .52 .86 .6o .30¼ .49 .48 .51¼ .83 .45 · 22 I.20 1.14 1.26 1.82 .75 .46 Crops October weather was generally unfavorable for the maturity and harvesting of late crops in Oklahoma, Nebraska, Kansas, and western Colorado, but favorable in Wyoming, New Mexico, Missouri, and eastern Colorado. Untimely frosts in the first week of October did considerable damage to corn, grain sorghums, and cotton, and the cool, cloudy weather following prevented any rapid growth. Freezing temperatures again prevailed in the first week of November. The November I estimates of crop production in the District showed declines for corn, grain sorghums, dry beans, and sweet potatoes from the estimates one month earlier. The estimates for white potatoes, sugar beets, tobacco, apples, and pears were increased slightly, while the estimate for broomcorn remained unchanged. Production, in thousands of units, as estimated by the United States Department of Agriculture for the seven states, all or parts of which comprise the Tenth District: Corn, bu........................................... Grain sorghums, bu.·---················· Broomcorn, tons.............................. Dry beans, 100 lb. bags·-··············· Sugar beets, short tons.... _............ Tobacco, lbs·-·······················-········· White potatoes, bu......................... Sweet potatoes, bu ........ ·-·············· Apples, bu_____ Pears, bu·----···················· Nov. 1 1935 285,413 37,899 31 2,344 3,099 4,695 36,395 2,325 8,885 1,365 Oct. I 1935 292,098 44,463 31 2,6o7 3,072 4,570 35,209 2,450 8,456 1,276 Final 5-Yr.Av. 1934 1928-1932 75,176 590,390 13,988 37,856 17 38 663 2,290 2,549 4,052 3,121 5,836 16,26o 39,472 1,656 2,808 5,496 7,220 990 996 The 1935 corn crop in the seven states was estimated at 285,413,000 bushels, which was more than three times the amount produced in 1934 but less than half the five-year, 1928-1932, average production of 590,390,000 bushels. The early frost and cold, wet weather during October prevented the unusually late crop from maturing properly, resulting in a considerable portion of soft and chaffy corn. High moisture content delayed field drying and caused husking to be later than usual. The production of grain sorghums was estimated at 37,899,000 bushels as compared to 13,988,000 bushels harvested in 1934 and 37,856,000 bushels for the average. Sharp freezes in October killed many immature plants, and Kansas reported that a larger proportion than usual of the indicated production of both grain sorghums and corn represented the feeding value of grain sorghums and corn harvested for fodder and silage. Harvesting was delayed in many areas by rains and muddy fields. Harvesting of the dry bean crop was practically completed by the end of October and threshing was well along. Some damage was reported from the low temperatures to potato vines and to potatoes already dug and placed in temporary pits. October weather was favorable for harvesting the sugar beet crop and most of the beets had been dug in Colorado by the end of the month, with digging well under way in the Arkansas Vallev of western Kansas. Fall rains were beneficial to apples and pears. The pecan crop in Oklahoma, estimated at 25,000,000 pounds, the largest of record and twice the average production, was well under way by the first week of November. The cotton crop, adversely affected by the drought in July and August, made new growth after September rains, but unseasonably cool, wet weather in October did not permit it to mature. Bolls have opened very slowly and picking was held up by wet weather. Cotton production was estimated at 910,000 bales for the three states of Oklahoma, New Mexico, and Missouri as compared to 648,000 bales last year and 1,613,000 bales in 1933. Cotton acreage and production estimated by the United States Department of Agriculture, thousands omitted: Oklahoma.......... New Mexico.... Missouri ............ Three states.-... United States.__ ACREAGE FOR HARVEST Nov. I Nov. I Nov. 1 1935 1 934 1933 2,628 2 ,539 2,932 108 84 92 288 320 337 ESTIMATED PRODUCTION (500 lb. bales) Nov. 1 Final Final 1933 1935 1934 1,266 625 3 17 85 89 94 2 53 200 242 3,056 28,652 910 11,141 --------2,919 27,241 3,353 30,036 648 9,636 1,613 13,047 Although wheat pastures were late, wheat already sown was making excellent growth in the eastern two-thirds of Kansas, where the sub-soil moisture had penetrated from two to six feet deep, but western areas showed continued subsoil moisture deficiency, many areas being too dry for sowing or for germinating wheat already sown, and wheat already up was drying out. In Oklahoma, wheat was making good pasture except in the Panhandle counties and this area received good rains in the second week of November. In eastern Kansas and northeastern Oklahoma, planting was delayed by excessive rains. Wheat in the irrigated sections of Colorado was up to a good stand. Early planted wheat in New Mexico was up and improved moisture conditions indicated it would soon be available for pasturage. Considerable damage to winter wheat from the drought in western Nebraska was reported, but soil conditions were fair to good in the eastern third of the state. Live Stock Receipts of all classes of live stock except horses and mules increased at the six principal live stock markets of the District during October, but receipts for October and for .the first ten months of 1935 were under marketings in the comparable periods in 1934, when Government drought relief purchases swelled arrivals. October receipts of cattle were 5.3, calves 9, hogs 53, sheep 12.1, and horses and mules 16.7 per cent under the ten-year average for the month, The six markets received 9,710 head of horses and mules in October, I'.l,094 head in September, and 17,194 head in October, 1934. Cattle and sheep prices at Kansas City closed the month with small net gains ranging up to not more than 50 cents, but hog prices closed with uneven, seasonal net declines rang- 6 THE MONTHLY REVIEW ing from 50 cents to $1.75. Cattle prices fluctuated irregularly during the month but steadied toward the close as fed cattle marketings replaced grass cattle. Finished steers brought a top of 1,12, equalling the top which has held since last May. The October, 1934, top for cattle was 9.35. Increased receipts and lower dressed pork prices tended to reduce hog prices. Hogs sold up to a top for the month of 1,10.65 as compared to the six-year peak of $12 reached in mid-August and the October, 1934, top of 1,6.IO. October lamb prices reached f,10, as compared to 1,6.60 a year ago, and established a new high for the year on November 5 at 1,10.15. The condition of ranges, cattle, and sheep on November 1 showed uniform improvement over a year ago and was near, or above, the ten-year average condition. Pastures in the District were markedly improved as compared to last year. Stock water was ample in Iew Mexico, but streams and water holes were reported drying up too rapidly in Wyoming for maximum utilization of ranges. Total supplies of hay, grains, and roughages were large, with surpluses in irrigated and many other areas, but there were shortages of range and other feeds in parts of western Oklahoma, southwestern Kansas, southeastern Colorado, and south central Nebraska. The condition of ranges, cattle, and sheep reported by the Division of Crop and Live Stock Estimates: RANGES Nov.I Nov.I 10-Yr. 1935 1934 Aver. Colorado... -....... 77 49 84.0 New Mexico·-··· 86 52 83.8 Wyoming.......... 83 55 81.2 17 West. states 82 55 79.9 CATI'LE SHEEP ov.1 Nov.I Io-Yr. Nov.I ov.I 10-Yr. 1935 1934 Aver. 1935 1934 Aver. 85 69 89.8 89 7 5 91.6 88 69 88.I 91 68 88.3 88 72 89.5 88 74 89.9 87 69 85.7 90 72 88 .6 Stocker and feeder shipments from markets in the District increased from September to October and were heavier than during last October except for hogs. Shipments of cattle, calves, and sheep were approximately 80 per cent of the tenyear average for the month but hogs were only 50 per cent of the average. According to November I estimates of the Department of Agriculture, fewer lambs than last year will be fed on wheat fields in Kansas and Oklahoma and at commercial feed lots generally in the Corn Belt states. Northern Colorado, the San Luis Valley, and the Western Slope will feed more lambs this year, but a decrease in feeding operations in the Arkansas Valley will reduce the total fed in Colorado to approximately the same as last year. The total number to be fed in the Scottsbluff area of Nebraska was estimated as smaller, but in the Scottsbluff area of Wyoming larger. It was estimated that cattle feeding operations would be increased during the winter of 1935-1936, and the movement to pastures and feed lots was in considerable volume by the end of October. A plentiful supply of hay and roughage at low prices in Corn Belt states maintained a broad demand for stocker and feeder cattle. Kansas City .............. Omaha ........................ St. Joseph .................. Denver........................ Oklahoma CitY-········ Wichita ...................... Cattle 198,6o4 167,022 47,599 93,264 63,202 3 2,9 1 4 Meat Packing Operatjons at Tenth District meat packing plants, as reflected by packers' purchases at the six principal live stock markets, I direct shipments of hogs included, were somewhat heavier during October than in the preceding month. Purchases of cattle increased 13.9, calves '20.4, and hogs 13.6 per cent, wi~h purchases of sheep and lambs approximately the same. <J:ompared to the unusually heavy operations of last October, cattle purchases declined 18.8, calves 43.1, hogs 61.7, and sheep 58.8 per cent. Slaughter for the first ten months of 1935 lwas considerably below the corresponding period in 1934, when many cattle, calves, and sheep were slaughtered for the Government account. Packers' purchases during October, 1935, exceeded the ten-year average for cattle and I calves by 4.8 and 14.9 per cent, respectively, but hogs were 51.7 and sheep 36.3 per cent under the average. The lovernment's report of live stock slaughtered under Federal eat inspec~ion in the United States, excluding slaughter for Gov rnment relief purposes, showed cattle slaughtered IO per cent larger than last October and the largest for any October of record except 1917 and 1918, exceeding the ten-year average by about 24 per cent. Calf slaughter was ahout '2 per cent under la~ t October but otherwise the largest for any October of recor and 21 per cent above the ten-year average. Hog slaughte was the smallest for the month since 1910 and about 38 per cent below the ten-year average. Sheep and lamb slaught~~, exceeded only in October, 1931, was '20 per cent above t~e ten-year average for the month, and from the beginning of the marketing year, May 1 to October 31, it was nearly I~ per cent larger than in the comparable period in 1934. Federally inspected live stock slaughter reported by the Bureau of Agricultural Economics from compilations of the Bureau rl f Animal Industry: 1 Octoher 19135.................... September 1935·--· ......... October 1914.................... Ten month 1935-........... Ten month 1934............ NOTE: Slaughter for Cattle Calves Hogs 1,083,044 531,090 2,135,317 885,782 457,894 1,452,926 980,956 541,104 3,545,u1 7,827,398 4,717,226 20,76I,c94 8,252,874 5,155,867 35,367,560 Government relief purposes excluc!ed. Sheep 1,764,535 1,548,865 1,656,961 14,868,549 13,432,700 Cold Storage Holdings United States cold storage stocks of pork, lard, eggs, butter, and cheese declined seasonally from October 1 to November 1, while stofks of beef, lamb and mutton, and poultry accumulated seasonally. Stocks of all commodities except butter were smaller than on November 1, 1934, with holdings of pork and lard less than half the amount in storage at that time. Storage stocks of beef were 8.4, butter 19.0, and cheese 13.0 per cent above tHe November 1 five-year average, while stocks of pork were 44.6, lamb and mutton 33.9, poultry 13.9, miscellaneous meats I 5.2, lard 42.3, and eggs 9.4 per cent under the average. 1 OCTOBER MOVEMENT OF LIVE STOCK IN THE TENTH DISTRICT RECEIPTS PURCHASED FOR SLAUGHTER STOCKERS ANO FEEDERS Calves Hogs Sheep Hogs Sheep Cattle Calves Sheep Cattle Calves Hogs *75,680 71,726 86,851 140,472 87,631 16,647 3,481 29,546 *94,465 46, 243 45,95° 1,594 82,413 71,420 89,644 15I,764 23,450 76,526 49,701 13,673 57, 1 93 9,777 1,192 47,800 11,039 56,410 76,815 30,406 9,IIJ 9,963 44,749 34,554 754 17,74 2 440,260 20,486 4,268 50,986 3,141 a,789 58 7 10,997 31 ,3°5 9,5°3 21 ,499 21 ,347 6,219 24,654 36,009 15,945 7,893 12,795 14,242 13,225 4,058 3,069 10,319 10,394 October 19JS•-·········· 602,605 I'2I,760 289,926 1,098,335 224,256 30,3r9 September 1935........ 504,913 93,648 245,4I8 747,792 148,000 20,141 toctober 1934-........... 713,512 183,217 710,988 1,.j.11,877 156,164 30,304 Ten months 1935 ...... 3,708,673 716,737 2,643,871 6,548,032 902,600 140,291 tTcn months 1934.... 5,666,634 1,229,~29 7,543,955 7,580,056 1,070,203 136,448 *Includes .p.,780 hogs shipped direct to packers' yards. tReceipts include Government 246,712 566,610 262,ns 77,453 228,034 245,665 5,730 234,487 230,084 64,324 200,800 16,001 4T1,846 322,905 136,165 595,·137 599,54 1 61,602 1,219,794 1,868,085 524,891 2,061,281 3,o53,697 92,401 472,846 2,959,381 892,707 6,407,425 3,649,73 1 drought relief purchases of cattle, calves, and sheep. 6,325 7 THE MONTHLY REVIEW Total inventories of meats and lard continued at record low levels. United States cold storage holdings reported by the Bureau of Agricultural Economics: *Nov. I 1935 65,478 240,248 Oct. 1 1935 48,'.2'26 277,605 1,376 39,720 6,549 49,065 45,35° Nov. 1 Nov. 1 1934 5-Yr.Av. Beef, lbs.·---········································· 108,399 60,387 Pork, lbs............................................... 504,737 433,859 Lamb and mutton, lbs....................... J ,965 3,074 2,972 Poultry. Jhs ........................................ 53,041 73,401 61,600 ••Turkeys, lbs........................................ 3,654 1,763 1,894 Miscellaneous meats, lbs.·-················ · 53,431 106,670 63,043 Lard, lbs............................................... 4o,357 105,5 19 69,920 Eggs, cases............................................ 4,632 6,353 4,633 5,113 Egg~, frozen (case equivalent).......... 2,505 2,819 2,535 2,506 Butter, creamery, lbs ......-................... 120,038 148,822 111,073 100,848 ~hee~e, all vari~t.ies, lbs..................... II 1,729 114,953 118,008 98,894 Sub3ect to rev1s10n. ••Included in Poultry. (ooo omitted.) NOTE: Meats held for the account of the Federal Emergency Relief Administration are not included in the above. Coal Bituminous coal production in the District increased during October by more than the usual seasonal amount. October pro?uction was estimated at 2,4II,ooo tons, which represented an rncrease of 835,000 tons, or 53 per cent, over the preceding month, and 395,000 tons, or 19.6 per cent, over October, 1934. Production for the first ten months of 1935 exceeded the corresponding period in 1934 by 2,202,000 tons, or 16.3 per cent. Bituminous coal production reported by the Bureau of Mines: Colorado.-..................................... Kansas and Missouri .................. New Mexico·----·······················Oklahoma. __ ··········---········-······ Wyoming...................................... *Oct. 1935 Tons Sept. 1935 Tons 735,000 685,000 45i,OOO 126,000 260,000 605,000 467,000 94,000 172,000 386,000 Oct. 1934 Tons 630,000 563,000 u5,ooo 178,000 530,000 ---- Total six states............................ 2,4II,ooo 1 576 ooo 2 016 ooo To•ta lU. ' ' ' ' . mted States ................. _. 36,697,000 24,944,000 32,573,000 Esttmated from the weekly reports of the United States Bureau of Mines. Zinc and Lead Shipments of zinc concentrates from Tri-State mines and tailing mills continued to increase in the four -weeks' period ending November 2 and were 73.2 per cent larger than in the corresponding period in 1934. A]thcugh shipments were short of production early in October, demand later improved and kept pace with increased production, taking all concentrates available. Lead ote shipments, recovering from a decline in August and Septem1'er, rose 19.8 per cent in the four-weeks' period ending November 2 and were more than three times as large as in the like period last year. The tonnage and value of zinc ore and lead ore shipments from Oklahoma, Kansas, and Missouri: Oklahoma._················-··················Kansas .............................................. Missouri ... ·-··········-·························· 4 Weeks 4 Weeks 4 Weeks 44 Weeks 44 Weeks ended ended ended ended ended ZINC ORE LEAD ORE Tons Value 28,325 '/, 900,894 8,417 266,546 1,006 31,895 Tons Value 2,697 '/, 126,759 24,534 522 84 3,948 ov. 2, 1935...-... 37,748 11, 199,335 Oct. 5, 1935·---· 36,531 1,102,869 Nov. 3, 1934·---· 21,789 557,042 Nov. 2, 1935·---· 309,594 8,666,184 Nov. 3, 1934----· 2 53,733 6,983,917 3,3°3 '/, 1 55,241 2,758 127,048 1,o55 36,946 32,745 1,294,663 27,063 1,u3,633 Zinc ore prices advanced $1 in the four weeks to $32 per ton, but lead remained unchanged at $47 per ton. Comparable quotations in 1934 were $26 per ton for zinc and 136 per ton for lead. Petroleum The estimated flow of crude oil in the five oil producing states of the District during October was 748,600 barrels per day, which was slightly less than the daily average for September, but 61,600 barrels, or 9 per cent, more than the daily average for Octoher, 1934. Gross production, however, with one more producing day, increased from September to October and was 9.1 per cent greater than during last October. Production for the first ten months of 1935 totaled 229,533,000 barrels, an increase of 13,653,000 barrels, or 6.3 per cent, over the corresponding period last year. Gross and daily average production estimated from the weekly reports of the American Petroleum Institute for October and officially reported by the Bureau of Mines for September, 1935, and October, 1934: GROSS PRODUCTION Sept. 1935 Oct. 1935 Barrels Barrels 15,491,000 14,934,000 Oklahoma·--································· Kll"'"'S .......................................... 4,550,000 4,598,000 1,204,000 1,225,000 Wyoming...................................... 138,000 135,000 Colorado.--··································· 1,757,000 1,762,000 New Mexico.---··················-········ Oct. 1934 Barrels 14,571,000 3,987,000 1,161,000 103,000 1 ,457,000 22,588,000 84,109,000 21,279,000 76,776,000 DAILY AVERAGE PRODUCTION Sept. 1935 Oct. 1935 Barrels Barrels Oklahoma. __................................ . 497,800 499,700 Kansas ......................................... . I 51,700 148,300 Wyoming..................................... . 40,200 39,500 4,600 4,400 Colorado.--··································· 58,700 56,700 New Mexico.---··············-········· .. Oct. 1934 Barrels 470,000 129,000 38,000 3,000 47,000 Total five states .......................... Total United States ................... . 687,000 2,477,000 Total five states .. .... ................... . Total United States .................... 2.3,207,000 86,127,000 748,600 2,778,300 753,000 2,803,600 Posted prices of mid-continent crude oil remained unchanged at schedules ranging from 76 cents to $1.08 per barrel per degrees gravity. Prices of refined gasoline ruled steady to strong throughout the month, but natural gasoline was in unsatisfactory demand until after a price drop in the latter part of the month. Lubricants were in good demand. Field operations continued at a high level, with important discoveries in Oklahoma and Kansas. Cement Production of finished Portland cement in the District increased from September to October by 37 per cent and was 41.6 per cent above October, 1934. Total production for the first ten months of 1935 was 6,678,000 barrels as compared to 6,618,000 barrels for the first ten months of 1934. Shipments increased 4.I per cent during October and were 22.2 per cent above last October, with total shipments for the year to Novem her I a hove the corresponding period last year by 7 per cent. Stocks declined 6.2 per cent between September 30 and October 31 but were 9.8 per cent larger than on October 31, 1 934· Cement production, shipments, and stocks reported by the United States Bureau of Mines, in thousands of barrels: TE NTH DISTRICT Production Shipments Stocks Oct. 1935.......... 796 935 2,q5 Sept. 1935........ 581 898 2,286 Oct. 1934.......... 562 j65 1,953 10 Mos. 1935.... 6,678 7,094 10 Mos. 1934-.._ 6,618 6,631 UNITED STATE Production Sh ipmcnts Stocks 20,498 7,5 10 8,794 'lt,783 7, 1 73 7,799 1 9,97 2 6,675 8,439 63,576 64,.i-45 67,456 67,139 8 THE MONTHLY REVIEW National Summary of Business Conditions By the Board of Governors of the Federal Reserve System ~~cr,~'--,---IN_D_US-T-RI-AL-PR_OOU_C_T_ION--..--~~•~~ 00 1~ 90 l - - - - t - - - - l - - - c - - f - - - 11--11-\-l- - 90 80 1 - - - - t - - - t - - - - \ - f - - - l - - - l - i~ l - - f t- - - i 80 70 1 - - - 1 - - - f - - - , l \ , - - - - l - l - - ' - - I - . . . Z . - - . - - - - l 70 _ _ _ _ _._...._,_.__.___.___. 60 50 ' - - - - - ' ' - - - - ' ' - - - ' - - - - ' - - - - - ' - - - - - ' - - - - ' !50 1929 1930 1931 1932 1933 1934 1935 Index of industrial_ production, adjusted for seasonal variation. (1923-1925 average=100.) Latest figure: October preliminary, 94. PEit CENT PUC £N T 120 120 FACTORY EMPLOYMENT 110 100 110 /'\ 90 100 '\ 90 "\__ 80 ,.. \.. 60 -,J 80 I' V I 70 \~ _/ 60 50 !50 1929 1930 1931 1932 1933 1934 1935 Index of factory employment, adjusted for seasonal variation. (1923-1925 average=100.) Latest figure: October preliminary, 83.7. M1LUONS OF OOl.C°MI MllLtONSOIF OOt..lAAS 600 CONSTRUCTION CONTRACTS AWARDED 600 Industrial production increased more than seasonally in October and there was also a considerable advance in factory employment and payrolls. There was a continuous inflow of gold from abroad and an increase in bank deposits. INDUSTRIAL PRODUCTION AND EMPLOYMENT: Volume of output at factories and mines, as measured by the Board's seasonally adjusted index of industrial production, increased from 89 per cent of the 1923-1925 average in September to 94 per cent in October, reflecting larger output in a wide range of industries. Automobile production, which had been at a low level in September when preparations were being made for the manufacture of new models, increased rapidly during October and the early part of November. At steel mills, activity increased slightly in this period, contrary to the usual seasonal tendency, and in the third week of November was at about 54 per cent of capacity. Lumber production showed little change. Among the industries producing nondurable manufactures, the principal changes in output were increases of considerably more than the usual seasonal amount at cotton mills, woolen mills, and meat packing establishments. At mines output of bituminous coal was in larger volume than in other recent months and output of crude petroleum continued to increase. Factory employment, which ordinarily shows little change at this season, increased considerably between the middle of September and the middle of October, reflecting substantial increases in the industries producing durable manufactures. The most marked expansion was in the automobile industry and there were smaller increases at railroad repair shops and in the iron and steel, machinery, and nonferrous metals industries. Employment at canning factories showed a considerable decline, largely of a seasonal character. Total value of construction contracts awarded, as reported by the F . W. Dodge Corporation, showed a considerable increase in October followed by a slight decline in the first half of November. In this six-week period total contracts were substantially larger than a year ago, reflecting marked increases both in residential building and in other types of construction, but the volume is still at a relatively low level. DISTRIBUTION: Railroad freight carloadings increased by a considerable amount from September to October, reflecting principally larger shipments of coal and miscellaneous freight. In the early part of November carloadings were at a lower level than in October, chiefly as a consequence of seasonal developments. 1929 1930 1931 1932 1933 1934 1935 Three-month moving averages of F. W. Dodge data for 37 Eastern States, adjusted for seasonal variation. Latest figure based on data for August and September and estimate for Octobtr: total, 190.4; residential, 46.7; all other, 143.7. 110 110 100 100 90 90 80 80 70 70 60 60 !50 50 40 40 30 30 1929 1930 1931 1932 1933 1934 Department store sales, which usually increase at this season, showed little change from September to October on a daily average basis, and the Board's seasonally adjusted index declined from 81 per cent of the 1923-1925 average to 77 per cent. 1935 Indexes of the United States Bureau of Labor Statistics. (1926=100.) By months, 1929 to 1931; by weeks, 1932 to date. Latest figure, November 16: farm products, 77.8; foods, 84.9; other commodities, 79.0. COMMODITY PRICES: The general level of wholesale commodity prices, as measured by the index of the Bureau of Labor Statistics, was slightly lower in October and the early part of November than in the latter part of September, reflecting reductions in the prices of farm products and foods offset in part in the index by an advance in prices of other commodities, particularly hides and leather products and textiles. Prices of hogs and pork showed a decrease, as is usual at this season, while cotton advanced. BANK CREDIT: Excess reserves of member banks increased further by $190,000,000 during the five-week period ended November 20, reflecting a continued inflow of gold from abroad. At the end of the period excess reserves were at a new high level of over '$3,000,000,000. Total loans and investments of reporting banks in 101 leading cities increased by $190,000,000 during the five weeks ended November 20, reflecting principally an inci-ease in holdings of United States Government securities. Adjusted demand deposits of these banks showed an increase of $550,000,000 for the period. The call money rate on New York Stock Exchange loans was increased from ¼ of per cent to ¾ of I per cent in the last week of October. At the same time the rate on time loans was increased from ¼ of I per cent to ·1 per cent, but few loans have been made. Other money rates have remained at former low levels. 1
@FedFRASER