The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
MONTHLY
REVIEW
Agricultural and Business Conditions
TENTH FEDERAL RESERVE~DISTRICT
VoL.
2.2.,
No. 13
FEDERAL RESERVE BANK OF KANSAS
CITY
DECEMBE1t.
3 I, I 937
Business in the Tenth Federal Reserve District
NOVEMBER 1937
COMPARED \\'ITH NOVEMBER 1936
% INCREASE
% DECREASE
!
--------i.--.•
:
Denver•
·--------:' KANSA
COLO.
I
I
I
KANS.
I
·-----------·-··-r-.!.---
10 20
40 30 20 10
•
• ••
I
-
I
I
During recent weeks business
receded further. Last month a relatively few lines of activity were
under a year ago, but in November and early December declines
are more marked. Even in such
series as payments by check and
crude oil production that are still
above a year ago the margin is
greatly narrowed. Factors little
related to business activity account
for gains in marketings of grain.
Declining lumber sales and
building permits reflect the unsatisfactory state of the construction industry, and lower shipments and prices of lead and
zinc ores are the result of business decline.
More favorable items include life
insurance sales which are better
in this District than in the country
as a whole. While retail sales in
general are lower, department store
sales are nearly equal to a year
ago. Bank loans are much above
last year and bank investments
are lower.
I
I
30 40
BUSINESS
INDICATORS
Financial
% DECREASE
40 30 20
% INCREASJ
-·
10
10 20 30 40
-13ank Debtta_
•
••
•
•
••
F. R. Bk. Clearings_
_Mem. Bk.
Loans_
_...lfem. Bk. Invest._
■
_l)emand Deposits_
-Life Ina. Sales_
Trade
_ Wholesale Sales_.
_Retail Sales_
_Dept. Store Salee_
-Lumber Sales_
I
11 MOS. 1937
COMPARED WITH 11 MOS. 193'
■
Marketings
_ _Wheat_ _
+119 _ _Corn _ __
_ _ oats _ _
I
_ _ cattle _ _
__ __Calves _ _
I
_ _ Hoga _ _
---Sheep_ _
Production
I
_Flour_ _
••
_cattle Slaughter_
_Calf Slaughter_
__Hog Slaughter__
I
•
_Sheep Slaughter_
_ Crude Petroleum_
__ Bituminous CoalZinc Ore Shipments
Lead Ore Shipments
••
••
••
Construction
_Total Awards_
_Rea.
Awards_
_Value of Permits_
Miscellaneou•
iSI __Rainfall_ _
I
I
I
■
Cash Farm Income •
_Employment.,__
_ _ PayRolla•For orerlous month
I
I
•
•
■•
■
I
-·--•-·
■
■
■
2
REVIEW OF AGRICULTURAL AND BUSINESS CONDITIONS
Principal items of condition of the Federal Reserve
Bank of Kansas City and branches:
Member Bank Operations
Commercial and most other types of loans at reportChange from
Dec. 22
Nov. 17
Dec. 23
ing member banks in the Tenth District' . ,·declined
1937
1937
1936
seasonally from the middle of November to· :the third
7fri thousands of dollars) ·
week of December and investments continued to decline, Total reserves.................................. 290,817 -12,621 +23,761
discounted. __ ···························
1,094
-14
+1,019
total loans and investments falling below a ;year ago. Bills
Bills purchased.... ...........................
80
Zero
-7
Holdings of United States Government direct obliga- Indu.c;trial advances·--·····················
464
-20
-331
Commit. to make indust. adv.......
112
-3
-221
tions had increased somewhat in the second week of U.S.
Government securities..........
125,263
+279
-592
December from the low point of the year in the pre- Total resources....... _....................... 459,161 -17,669 +20,296
R. notes in circulation·-··-·········
170,194
+2,685
+7,087
ceding week but subsequently declined. Loans are still F.
Member bank reserve deposits·-···
234,679 - 11,046 + 12,093
15 per cent higher than a year ago but investments
Dollar volume of check collections showed somewhat
are now 14 per cent lower.
less than the usual seasonal decrease during November.
Reserve balances carried with this bank show a further Dollar volume, however, was slightly smaller than
decrease but the decline in adjusted demand deposits in November of last year.
has recently tended to level off. Demand deposits
Check collections through this bank and branches:
are only fractionally lower than a year ago. CorreITEMS
AMOUNT
spondent balances carried with other banks continue to
1937
1936
1937
1936
(In thousands)
increase while correspondent balances of other banks
November...................... .
5,845
5,755 $ 948,665 $ 957,040
with these fifty-one reporting banks continue to decline. October.......................... 6,068 6,292
1,020,277
1,012,966
Principal items of condition of 51 member banks: Eleven months·-··········· 65,801 64,735 11,060,150 10,608,219
Loans and investments-totaL_........ .
Loans-totaL_...................................... .
Coml., in dust., agric ...................... .
Open market paper·--····· .............. .
To security brokers and dealers... .
Other to purchase or carry secur.
Real estate loans._ .......................... .
Loans to banks............................... .
All other loans._ .............................. .
Investments-total.. ............................. .
U.S. Govt. direct obligations._ .....
Oblig. guar. by U.S. Govt.·--·······
Other securities............................... .
Reserve with F. R. Bank_................ .
Balances with domestic banks......... .
Demand deposits-adjusted ............... .
Time deposits ......................................
U.S. Govt. deposits........................... .
Interbank deposits............................. .
*Comparable figures not available.
Change from
Dec. 22
Nov.17
Dec. 23
1937
1937
1936
(In thousandsof dollars)
676,380 -19,230 - 28,0] 1
280,067
-7,135 -37,140
176,478
--4,682
*
22,290
- 1,607
*
4,271
+76
-43
12,997
-672
*
20,596
+251
+2,278
912
-136
- 1,308
42,513
-365
*
396,323 -12,095 -65,151
238,031
- 5,468 -35,011
44,753
-4,403
-3,306
113,539
-2,224 -26,834
159,761
-8,430
+9,357
215,602
+9,050 -60,211
485,345
-1,258
-6,311
145,059
-1,983
-139
14,043
+3,560
-4,586
347,775 -18,061 -70,967
Reserve Bank Operations
Federal Reserve note circulation of this bank has
risen further, reaching a new high level above 170
million in the third week of December and reflecting
principa1ly the seasonal demand for currency for Christmas
shopping which normally carries circulation to its
highest point of the year in this month.
Holdings of bills discounted for member banks are
seasonally lower than in the first part of November,
due largely to the return flow of funds from sugar beet
areas, and the total has again fallen to about a million
dollars. In the reallocation of Government securities
in the System's open market account, this bank's
participation was increased slightly further, representing
increases in holdings of Treasury bonds and bills and
a decrease in holdings of notes.
Bank Debits
Debits to individual accounts by banks in reporting
centers declined by about the usual seasonal amount
in November. Debits were 5 per cent larger than in
November a year ago but this increase was the smallest
for any month this year and compares with an increase
of 13 per cent for the first eleven months of 1937 over
the corresponding period in 1936.
Payments by check in thirty cities:
Change from
Nov. 1937
Oct. 1937
Nov. 1936
<In thousands of dollars)
16,767
-177
+3,262
Albuquerque, N. Mex ....... .
3,246
-449
-12
Atchison, Kans ..-.................
29,907
-1,776
+6,520
Bartlesville, Okla.................
7,445
-952
+961
Casper, Wyo.·--··················
9,087
·--1,047
+735
Cheyenne, Wyo ..... ............. .
17,222
+1,162
-1,100
Colorado Springs, Colo...... .
162,459
-24,431
-9,083
Denver, Colo.......................
2,847
-823
-433
Emporia, Kans ....-.............. .
10,583
-1,172
+1,864
Enid, Okla.·-··--······ ........... .
2,360
-132
-75
Fremont, Nebr .................... .
3,844
-605
+200
Grand Junction, Colo........ .
1,924
+209
+498
Guthrie, Okla......... ............. .
13,573
+216
+1,697
Hutchinson, Kans .............. .
2,623
-192
+87
Independence, Kans .......... .
9,721
-1,199
+351
Joplin, Mo.·-··-- .................. .
12,982
-2,121
+708
Kansas City, Kans .............
311,250
-46, 764
+9,823
Kansas City, Mo ................ .
3,410
-529
-103
Lawrence, Kans ...... ......... .. .
28,179
-2,966
+ 1,278
Lincoln, Nebr..- .................. .
8,496
-1,188
+907
Muskogee, Okla .................. .
110,073
-3,495
+22,469
Oklahoma City, Okla.........
2,744
-150
-31
Okmulgee, Okla.................. .
144,565
-22,247
-4,616
Omaha, Nebr ...................... .
3,966
-323
+220
Pittsburg, Kans .................. .
27,495
+9,737
+2,877
Pueblo, Colo.........................
7,472
-2,503
-848
Salina, Kans ...................... ...
25,056
-2,825
-2,565
St. Joseph, Mo .................... .
13,785
-1,863
-694
Topeka, Kans.·--············ ....
152,446
-] 1,320
+21,848
Tulsa, Okla.......................... .
43,836
-5,823
+1,927
Wichita, Kans .................... .
District, 30 cities................. .
United States, 141 cities ... .
1,189,363
-125,748
+58,672
31,592,562 -4,480,829 -4,276,606
8
FEDERAL RESERVE BANK OF KANSA$ ClTY
Trade
DEPARTMENT STORE SALES
Following less than the usual increase in the preceding
month, dollar volume of sales at reporting department
stores in the District declined by about the usual seasonal
amount in November. Sales were 1 per cent larger
than in November of last year but the month had one
more business day this year than last, so that on
a daily average basis _the comparison with a year ago
actually shows a decline. Total sales so far this year
are about 4 per cent larger than in the same period of
1936. Retail prices, which have been declining since
September, were still better than 4 per cent higher on
December 1 than a year ago, according to the Fairchild Index.
Stocks of merchandise increased seasonally in N ovember. However, the retail value of these stocks was only
3 per cent larger than that at the close of November
a year ago. Collections on open accounts averaged
46. 7 per cent of receivables in November this year and
47.5 per cent last year, while installment collections
averaged 15.2 and 15. 7 per cent, respectively.
Department store ~cJes and stocks in leading cities:
SALES
STOCKS
Nov.'37 11 Mos.'37
Nov. 30,'37
No. of comp.to comp. to
compared to
Stores Nov.'36 11 Mos.'36 Oct.31,'37 Nov.30,'36
(Per ceht increase or decrease)
Denver.... .............. 4
+1.0
+5.8
+5.5
+1.4
-10.3
+1.4
+2.3
+1.4
Kansas City·-······· 4
Oklahoma City.... 3
+7.6
+4.2
+2.8
+7.1
Omaha.................. 3
+0.6
-2.0
+0.8
+4.1
Tulsa...................... 4
+18.2
+10.5
+10.0
+8.2
+5.0
+ 11.6
-0.9
+6.2
Wichita·-··············· 3
+8.2
+3.3
-1.7
+1.6
Other cities.~--·····20
District..................41
+1.0
+4.2
+s:o
+2.7
RETAIL SALES
November sales of independent retail stores in the
District were nearly 12 per cent lower than in October
and about 4 per cent lower than in November of last
year. Some types of retailing, however, reported
sizeable gains over a year ago in Colorado and Oklahoma.
Sales of independent retail stores reportro by the
Department of Commerce:
·
Nov. 1937 per cent change from Nov. 1936
Colo. Kans.
Mo. Nebr. Okla.
A.ppareL ........................... +2.8
3.5
-6.o +o.5 ""+"f.3
Country general.. ............ +0.4
-1.6
-3.9 -6.0 +25.3
Department..................... . +2.4
+4.3
-0.4 -0.8
+9.6
Drug............................... . +0.2
-2.1
+3.5 -0.8
+4.8
Furn. and appliances...... -8.8
-7.6
-6.8 -1.6
-1.2
-2.0
-2.2 -2.3
-0.2
Grocery·--························· +3.2
Hardware......................... . -1.3
-5. 7
-4.6 -0.3
.......7_3
Lbr. and bldg. mtls ........ . +9.8 -17.7 -13.3 -6.2
-·9.6
Motor vehicle .............. ... -26.9 -24.2 -26.6 -6.6 -29.0
TotaL...............................
-6.7
-6.9
--4.8
-1.7
-0.6
WIIOL'l!'.SALE SALES
The value of November wholesale sales in this District
was about 11 per cent under that in October, sales of
drugs declining about 13, dry goods 20, groceries 8,
hardware 22, and paper 16 per eent. Dollar volume
was sustained above the level of a year ago, total sales
being bette-r than 3 per cent larger than in November
of last year, but the gain for the year to date has been
narrowed to less than 6 per cent. November sales of
hardware were sharply lower than a year ago.
Wholesale sales and collections reported by the
Department of Commerce for this District:
SALES
Nov.'37 11 Mos.'37
COLLEc'i"IONS*
comp.to
Nov. Oct. Nov.
No. of comp.to
Firms Nov.'36 11 Mos.'36 1937 1937 1936
(Per cent change) (Median percentages)
+1.5
+4.l
75.9 83.7 SU>
Drugs........... _... 8
-1.4
42.2 34.0 44.3
Dry goods·---··· 4
+11.6
36.3
85.0
Furniture.......... 4
+3.7
+7.0
95.0 94.0 95.IS
Groceries·----··· 10
~17.8
-0.6
43.7 48.2 48.1
Hardware.......... 5
+8.3
55.3 64.3 53.o
Papet.---··········· 3
+17.9
+16.7
58.8 67.0 58.0
All ~ther lines... 14
District.............. 48
f3.3
+5.8
62.4 71.0 70.0
*Collections during month on receivables at beginning of month.
Crops
The fall seeded acreage of winter wheat in this
District is slightly larger than that in 1936 although
the acreage sown to winter wheat in the country as
a whole shows a small decrease. The Kansas acreage
is the largest of record and, as in most other states in
the District, it reflects the favorable wheat prices that
prevailed at seeding time and a further shift from corn
to wheat, largely the result of five successive years with
either complete failure or very low corn yields.
According to crop reports, however, the December
1 condition of winter wheat indicates that the 1988
crop will be smaller than that produced in 1937. There
was a serious deficiency of soil moisture at seeding time
generally and precipitation since seeding time has
been below normal. As a result of this lack of adequate
moisture, extensive grasshopper damage to early sown
wheat that had made fairly good growth, and the slow
development of late plantings, which have come up to
uneven stands or have not germinated, winter wheat
is somewhat below average in condition. Present indications are that abandonment of seeded acreage will
be heavier than in 1937 and above the average.
Department of Agriculture estimates of winter wheat
acreage and condition:
Colo .......
Kans .......
Mo .........
Nebr...._.
N. Mex..
Okla.......
Wyo .......
FALL SEEDED ACREAGE
Aver.
1936
1935 ~
1937
(000 omitted)
1,446
1,877
1,197
1,562
17,446 17,104 14,244 13,255
2,710
2,258
1,677
3,887
4,721
4,412
3,474
3,667
410
412
410
360
4,685
5,959
5,622
4,845
227
239
285
166
7 States..
U.S .......
32,919
67,492
82,561
57,612
26,663
49,765
25,424
45,290
CONDITION
December 1
1937 1936 1935
(% ofnormai)
64
82
77
73
80
81
80
'78
66
71
58
74
64
67
69
68
75
71
68
68
70
72
76
75
76
78
78
REVIEW OF ·AGRICULTURAL AND BUSINESS CONDITIONS
Rainfall as reported by the Weather Bureau:
Nov. 1937
11 Mos. 1937
Total N onnal Total Normal
COI.ORADO
-(In inches) - - Denver.....-....................................... .61
.66 10.04 13.32
Leadville·--··-··································· 2.09
.93 26.31 17.56
Pueblo .,-............................................ .19
.36
6.32 11.17
Lamar·-·· · - - - · · · · · ···················· .33
.63
6.63 16.44
Garnett._.......... ................................. .08
.32
6.59
6. 72
Steamboat Springs.......................... 3.38
1.49 27.31 21.16
KANSAS
:~i
.20
1.52
2.22
.99
1.43
1.39
1.01
.73
.84
.72
18.67
33.10
18.31
18.66
25.06
17.68
12.38
7.02
12.35
32.57
36.78
25.92
26.50
29.11
23.07
19.94
16.97
18.14
St. Joseph·--····································· 1.22
1.58
::J:
!t~
1.07
1.07
1.12
1.04
.78
.47
.43
.66
20.36
19.19
20.69
22.78
15.79
12.08
8.94
10.83
26.84
26.99
27.43
26.31
19.13
17.99
15.71
18.25
.72
.68
.86
11.67
15.33
7.48
15.90
12.42
8.85
2.48
2.84
1.87
2.32
1.66
1.60
1.67
37.08
38.70
22.38
34.78
25.06
29.14
19.23
36.83
40.66
29.65
33.10
26.97
29.48
25.00
•52 i {12.82
.75 .: 14.93
.60 .. 15.08
.63 14.17
14.44
14.49
11.95
14.42
Topeka......................... ···-··············· 1.34
Iola ...- ..········-······ ............................. 1.20
Concordia.__····································· .20
Salina................................................ 1.60
Wichita·-·······.................................... .76
Hays................ ............. ·······-··········· .40
~1k~:rt~!~~~~::.·.·.~~:~~:~~~~~~::~~~~~::~~::::~~~~~
Goodland·········-····-----
MISSOURI
fo~U:s. City···-································· 1-:: g~
26.72
Cash grain prices declined in November but have
strengthened in the forepart of December. Further
unfavorable reports concerning the Argentine wheat
crop and the condition of domestic winter wheat,
together with liberal export sales of corn and an increase
in feeder demand for corn because of severe weather,
were the principal strengthening influences.
Cash grain prices at Kansas City:
Dec. 23 Nov. 30 Oct. 30 Nov. 30
1936
1937
1937
1937
No. 1 hd., dk., wheat, bu........... $ .96¼ $ .92¾ $1.01
$1.25
No. 2 mixed corn, bu................ .
.56¼
.62¼
.55½ 1.10¼
.51
.31
.31½
.32
No. 2 white oats, bu .........·-·······
1.00
No. 2 rye, bu ............................. .
.66¼
.67
.72
.90
.49
.48
.53
No. 2 barley, bu.·--······· ............ .
1.91
.94
.87
.90
No. 2 white kafir, cwt.·--··-·······
34.27
Live Stock
NEBRASKA
Omaha.·-·····-··-··············................. .26
Llncoln ................. ············-............... .14
Norfolk-.. ................ ......................... .32
Grand Island. ............- - --··· .06
McCook......... ·············-······-··········· .13
North Platte.................................... .06
Bridgeport........................................ .24
Valentine..............·······-··-··············· .17
NEW MEXICO
Clayton·---··-··································· .09
Santa Fe·--······································· .12
Farmington.. ···················-··············· Zero
OKLAHOMA
Tulsa
...........................
Mt'•.\.lester·---···································
Oklahoma City................................
Pauls Valley·-··-··- ··-··-··············-···
Hobart................·-----·-···
Enid..................................................
Woodward ............... _ _ _ _
2.84
4.26
2.4 7
1.76
.40
.72
.10
WYOMING
Cheyenne..............•······-··········-·······
Casper __ ...........................................
l,ander........ _....................................
Sheridan............................................
Grain Marketing
.90
.80
.67
•70
MARKETINGS
Marketings of cattle, calves, and sheep declined seasonally in November and hog receipts showed a small
seasonal increase. The decline in cattle receipts, however, was somewhat less than usual, and cattle marketings were not only about 9 per cent above the November
average for the past ten years but also about 3 per cent
above marketings in November of last year. Receipts
of calves continue heavy, although slightly below a
year ago, while marketings of hogs were about 50 and
sheep 25 per cent below both the average and a year ago.
Live stock receipts at six markets in the District:
Denver..........................
Kansas City................
Oklahoma City ............
Omaha..........................
St. Joseph·--···· .............
Wichita._ .......................
Cattle
99,605
151,745
39,768
143,665
33,824
26,034
Calves
14,324
43,958
15,541
27,228
6,624
8,854
Hogs
25,070
107,849
18,797
112,779
69,984
14,967
Sheep
187,412
71,836
10,768
80,580
48,016
9,921
Nov. 1937...__ ...............
494,641
116,529
349,446
408,633
547,811
311,44,0 1,030,158
133,818
Oct. 1937......................
Marketings of com showed a substantial seasonal Nov.
519,346
479,643
679,914
119,463
1936.---••·••··········
increase in November, but receipts of most other grains 11 Mos. 1937................ 4,281,604 918,843 3,299,265 7,098,789
declined, partly as a result of declining prices. Com 11 Mos. 1936................ 4,267,952 849,264 5,066,566 6,830,666
marketings were in unusually heavy volume, being more
PRICES
than double the November average for the past
Live stock · prices generally continued to decline in
ten years. Wheat marketings were 22, barley 71, and November, beef cattle and lambs reaching new lows
kafir 58 per cent below the ten-year average while receipts for the year and hogs selling at the lowest November
of oats and rye were 9 and 77 per cent, respectively, level in three years. However, prices of slaughter
above the average.
ewes and some cl~s of cattle advanced, and only
Receipts of grain at five markets in the District:
hogs sold below a year ago. In the first three weeks
Wheat Corn Oats Rye Barley Kafir of December, prices have been fairly steady as compared
~ thousands of bushels) - - with those at the close of November, although much
688
9
2
3
10
Hutchinson·----··-···
3,307 2,677
392
57
8 139 below November top prices established early in that
Kansas CitY·-···········
Omaha ..................... .
604 4,040
292
69
61
month. The recent decline in live stock prices has
268
695
202
3
3
St. Joseph. ___ ···········
843
60
1
10 been partly seasonal in nature, but it has been accenWit'hita._ ...................
tuated by an abnormally slow consumer demand for
5,700 7,481
Nov.1937
888 133
162
69
8,145 3,216 1,139
Oct. 1937..................
167
178 131 meats and unsettled business conditions in general.
5,670 3,422
713
62
164 218 Trade reports indicate that the break in cattle prices
Nov. 1936·---···········
11 Mos. 1937............ 173,314 22,652 14,084 1,351
1,834 844
11 Mos. 1936............ 123,789 35,560 13,958 913
2,714 1,408 occurred much sooner than was expected, and best
5
FEDERAL RESERVE BANK OF KANSAS CITY
The December survey of the Department of- Agricattle have declined about $5 or $6 a hundredweight
culture:
since the first of October. Hogs have declined as much
PIGS SAVED
Sows FARROWED
as $5. 70 from their August high, but lamb prices, while
Fall
Spring
Spring
1937
1936
1937
1936
*1938 1937
currently far below their high of last spring, have
(In thousands)
declined only about $3 since September.
Colo. ________________ _
147
164
191
220
30
32
Kans.
_________________
_
620
745
1,070
116
630
112
Top live stock prices at the Kansas City market: Mo. ___________________ _
Dec. 23 Nov. Oct. Nov. N ov. Nov.
1937
1937 1937 1936 1935 1934
--(In dollars per hundredweight)Beef steers __________________________ _ 12.00 13.50 16.00 12.00 12.25 8.50
Stocker cattle___________________ _ 7.75 8.50 10.00 8.00 8.50 5.35
Feeder cattle _____________________ _ 7.75 10.00 10.75 8.25 8.00 6.15
Calves
____ ------------------------------_ 9.50 9.50 10.00 9.00 9.50 6.50
Hogs
___________________________________
8.15 9.40 11.45 9.55 9.65 6.60
Sheep________ _______________ __________ _ 6.50 7.75 6.75 6.75 7.75 4.50
8.50 10.15 10.75 9.25 11.10 7.00
Lambs -------------------------------
Nebr. _______________ _
N.Mex. ___________ _
Okla. _________________ _
Wyo. _________________ _
1,451
632
50
525
12
1,448
584
42
492
12
1,588
1,876
62
503
31
2,120
2,866
49
646 .
54
266
289 ·
12
94
6
242
295
11
82
6
7 States______________
3,437
3,372
4,996
7,025
813
780
23,573 23,830 38,654 41,509 6,512 6,202
*Number indicated to farrow from breeding intentions reports.
u. s.__ ________________
Farm Income
STOCKERS AND FEEDERS
Shipments of stocker and feeder live stock declined
seasonally in November. The countryward movement
of cattle, calves, and sheep continued in heavier volume
than a year ago, but, as in other recent months, shipments were below normal. Cattle shipments were
7 and sheep 22 per cent below the November average
for the past ten years and hog shipments continue
at an abnormally low level. Except in July and August,
demand for stockers and feeders this season has been
rather slow.
Stocker and feeder shipments from four markets:
Denver ____________________________
Kansas City__________________
Omaha ____________________________
St. Joseph _______ _______________
Nov. 1937______________________
Oct. 1937______ __________________
Nov. 1936_______________________
11 Mos. 1937__________________
11 Mos. 1936 __________________
Cattle
36,922
68,990
49,074
6,542
Calves
8,403
13,320
10,043
1,048
Hogs
1,853
763
870
Sheep
158,827
11,542
17,416
5,572
161,528
226,707
146,571
1,088,910
873,294
32,814
37,143
28,716
163,032
141,085
3,569
4,546
5,757
43,274
88,199
193,357
503,088
178,867
1,462,349
1,276,115
83
According to the Department of Agriculture, developments to December 1 gave further indication of a considerable increase in cattle and-lamb feeding operations
during the 1937-38 feeding season as . compared with
a year earlier, although numbers on feed will generally
be somewhat below average. Lamb feeding operations
are expected ·to be unusually heavy in the Scottsbluff
area of Nebraska and in northern Colorado.
Cash farm income in the District was fractionally
lower in October than in the preceding month although
normally an increase occurs. Income also was about
4 per cent lower than in October of last year. The
decrease from a year ago is accounted for mainly by
substantially smaller Government payments since r~
ceipts from the sale of farm products were about 6_
per cent higher than a year ago. In Missouri and
Nebraska, however, income from the sale of farm products, as well as from Government payments, was smaller.
Farm income in this District for the first ten months
of the year shows an increase of nearly 14 per cent over
that in the corresponding period of 1936. All states.
in the District except Nebraska, where income from
live stock has been greatly reduced, have shared in
this increase. Receipts from the sale of crops have
increased about 54 per cent and income from Govern~ent payments about 6 per cent, while income from
the sale of live stock and its products is little changed
from a year ago.
With prices received by farmers continuing to decline
from the middle of October to the middle of November
and prices paid by farmers for what they buy remain-_
ing the same, the purchasing power of farm productsdeclined 4 points to 84 per cent. This ratio is 10 points·
lower than a year ago and the lowest recorded since
July, 1935.
Income estimates of the Department of Agriculture: -
PIG CROP
The fall pig crop in this _District was _slightly larger
than a year_ago_but the combined spring and fall crop
was 19 per cent smaller because of the abnormally light
spring crop. The larger fall crop, together with a
prospective increase of 4 per cent in the number of sows
to farrow next spring, reflects a resumption in the upward trend of hog production which had started in the
fall of 1935 and had been checked by subsequent small
corn crops.
Colorado__________________
Kansas__ _______ _____ ________
Missouri_____ __________ ____
Nebraska__________________
New Mexico_____________
Oklahoma_______ :__________
Wyoming______________ ___
8,578
9,216
7,763
5,184
2,435
10,046
2,195
Oct. 1937_, ________________ 45,417
Sept. 1937_______________ 47,105
Oct. 1936 __________________ 44,401
10 Mos. 1937____________ 359,461
10 Mos. 1936____________ 233,116
Live Stock
Govt.
and Products Payments
(In thousands dollars)
10,543
104
15,200
332
19,228
175
19,306
71
5,982
59
7,874
159
' 8,249
31
of
86,382
84,712
79,302
644,775
645,397
931 ··
1,118
· 13,588
· 71,333
67,359
Total
19,225
24,74:8
27,166 .
24,561
8,476.
18,079
. 10,475
132,730
132,935
137,791
1,075,569
945,872
REVIEWIOF AGRICULTURAL AND BUSIN§3S OONDITIONS
Meat Packing
Cattle and hog slaughter increased and calf and
sheep slaughter declined during November. The increase in catUe slaughter was contrary to the usual
seasonal trend, with the result that cattle slaughter
was 7 per cent above the November average during the
pMt ten years. Calf slaughter was also above the average but the slaughter of all meat animals was much
below a year ago, with that of hogs and sheep at an
abnormally low level. The sharp reduction in slaughter
from a year ago is reflected in the declining trend of
cold -storage stock.c; of meats and lard.
Packers' purchases at six markets in the District:
Denver..........................
Kansas City................ .
Oklahoma City ........... .
Omaha......................... .
St. Joseph .....................
Wichita..........................,
Calves
4,409
19,834
9,988
16,143
5,567
4,127
Cattle
22,270
-69,641
23,345
69,403
28,297
13,934
Nov. 198'7___·················
Oct. 1937.... ..................
211,890
201,611
NOY. 193iL. ... ........ .....
239,432
11 Mos. 1937.......... ...... 2,080,132
11 Mos. 1936...... .... . ... 2,441,271
Hogs
Sheep
19,.791
99,857
14,338
90,014
65,472
13,746
24,356
55,002
5,669
57,~39
42,427
4,186
60,068
303,218
189,478
71,204
280,763
242,918
77,636
589,609
244,580
628,298 2,916,708 3,305,855
646,770 4,241,325 3,154,830
Cold Storage Holdings
After allowing for the usual seasonal changes, United
St.ates cold storage holdings generally continued to
decline during November, so that stocks of meats, lard,
and butter are at abnormally low levels for this time of
the year. Stocks of beef were 45, pork 31, lamb and
mutton 47, miscellaneous m~ats 31, lard 57, and butter
21 per cent below the December 1 five-year average,
while holdings of poultry ate still 4, eggs about 46,
and cheese 8 .-per cent a.hove average.
United States cold storage holdings:
Dec. l
1987
Beef, lbs•....·-·····························
Pork, lbs. ............................... ...
Lamb and mutton, lbs .......... .
Poultry, lbs.·-···························
Miscellaneous meats, lbs.. ··-·
Lard, lbs ..................................
Eggll, shell, -cases . . ...................
Eggs, frozen (case equiv.) ......
Butter, cre.amery, lbs .............
Cheese, all varieties, lbs.........
Nov. 1 Dec. 1
Dec. 1
1937
1936
5-Yr.Av.
- - (In thousand~ of units)
58,402 48,897 162,769
96,385
306,940 266,414 463,400
444,375
2,294
2,376
8,450
4,318
IOS., 787 76,208 149,391
104,677
49,917 -t2,210 94,611
71,976
33,974 39,477 103,765
79,268
2,677
5,158
1,755
2,148
3,451
3,823
1,895
2,045
66,208 98,624 88,866
83,444
108,519 112,687 114,706
100,454
Flour Milling
OperatioM at southwestern flour mills have declined
seasonally, dropping from 74 per cent of capacity in
October to 68 per cent in November and 65 per cent
in the first three weeks of December. Output contitmes to be .above the -average of the past ten years
although in recent months it has been slightly below
that of a year ago. The amount of flour on mills'
books is reported to be as heavy, if not heavier, than
at this time last year, but shipping directions tend to
come in less freely and operating time is now lower.
Flour production reported by the Northwestern Miller:
Nov. 1937
Atchison.......... ............................
Kansas City...............................
Salina ...... ····-····-·························
Wichita......... ............................ ·..
Other cities..·--···························
119,000
6.q7,000
171,000
187,000
984,000
Change from
Oct. 1937 Nov. 1936
(In barrels)
-11,000
-10,000
-16,000
+80,000
-28,000
-24,000
-24,000
-18,000
-94,000
-73,000
SouthwesL................................. 2,098,000 -173,000
-45,000
United States•............. ..... ........ 5,611,000 -356,000 +406,000
*Re.presents about 60 per cent of total output in United States.
Flour sales in the southwest have been dull since the
middle of November, the year-end slump in sales as
the inventory period approaches setting in somewhat
earlier than usual, reflecting in part the large voh.une of
sales made earlier in the fall.
Flour and millfeed
prices declined in November but have strengthened
in December. Supplies of millfeeds are lighter and
demand has increased because of the cold weather.
Petroleum
Daily average production of crnde petroleum in the
District showed a further decrease in November, bringing output down to within 4 per cent of the level of a
year a.go. Even so, output was still large, being 19
per cent above the November average during the past
ten years, and state allowables have been further reduced for December because of a larger than anticipated
curtailment in refinery operations occasioned by weakness in gasoline prices.
Oil production reported by the American Petroleum
Institute and the Bureau of Mines:
Colo...............
Kans ...·-·········
N.Mex ....... .
Okla...............
Wyo ...............
November 1937
October 1931
November 1936
Gross D. Av. Oross D. Av. Gross D.Av.
........__(In."Thousands of barrels)
127
4.2
120
3.9
123
4.1
5,413
180.5
6,002
193.6
4,992
166.4
3,141
104.7
3,297
2,493
106.4
83.1
17,163
572.1 18,554
598.5 17,415
580.5
1,650
1,578
56.0
50.9
1,414
47.2
916.6 29,561
953.3
5 States.----··· 27,494
U.S ............... 105,148 3,504.9 110,91 I 3,577.8
26,437
881.3
91,018 3,033.9
Another decrease, the second in recent months, in
the burdensome stocks of crude oil in Kansas and
Oklahoma occurred in November, stocks in that area
declining from 129,060,000 barrels on October 30 to
126,238,000 barrels on December 4. In the Rocky
Mountain area, where stocks have been declining,
there was a. small increase.
-
Coal
Output of bituminous coal declined in November.
As in. the preceding month, production fell below a
year ago> thus narrowing the gain for the year to date
to 4 per cent over last yea.r.
FEDERAL RESERVE BANK OF KANSAS CITY
Coal output estimated from reports of the National
Bituminous Coal Commission:
Nov. 1937
Colorado..................................
Kansas and Missouri ...... .... .
New Mexico·- -···· ................. .
Oklahoma·-·····························
Wyoming......·-·············-····-···
694,000
651,000
133,000
202,000
574,000
Change from
Oct. 1937
Nov. 1936
(In tons)
-42,000
-11~000
+18,000
+14,000
-23,000
-17,000
-63,000
+1,000
-39,000
-56,000
Six states.... ..·-··-·· ················· 2,254,000
- 133,000
-85,000
United States. ___ ··········-······· 35,300,000 -5,375,000 ~,579,000
Zinc and Lead
Zinc and lead shipments from the Tri-State district
declined further in November and the first two weeks
of December, falling more than 20 per cent below shipments a year ago. Output continues to decline rapidly,
with less than 40 mines and mills operating on normal
schedules at the middle of December as compared with
with more than 70 as recently as the middle of October.
Shipments estimated from Joplin News-Herald reports:
ZINC ORE
Kansas ................. .
Missouri... ........... .
Oklahoma..............
Nov. 1937.__·········
Oct. 1937..............
Nov. 1936._...........
11 Mos. 1937........
11 Mos. 1936........
Tons
10,666 $
3,626
18,703
LEAD ORE
Value
357,717
121,787
626.341
Tons
Value
1,040 $ 58,449
754
42,420
3,418
194,977
32,995 $ 1,105,845
38,421
1,456,664
42,404
1,352,214
436,979 17,777,888
400,158 12,690,952
5,212 $ 295,846
5,510
368,169
6,572'
378,757
59,441 4,248,203
48,173 2,437,882
Zinc prices declined $5.00 a ton and lead $7.50 in
November and early in December, making a total decline
of $15.50 a ton for zinc and $21.50 for lead since late
in September. Prices are now the lowest they have
been in more than a year, zinc bringing only $32 and
lead $56 a ton.
Employment and Pay Rolls
Declines of nearly 4 per cent in employment and of
better than 4 per cent in pay rolls from the middle of
October to the middle of November have reduced employment and pay rolls to a level slightly below that
at the middle of November last year.
Preliminary figures of the Department of Labor:
Colorado.................................................. .
Kansas ................ -................ ··-·········-········
Missouri. ................ •-·································
Nebraska ................................................. .
New Mexico·---··········- .......................... .
Oklahoma................................................. .
Wyoming .... •-· · ...................................... .
November 1937
per cent change from
October 1937
Employment
Pay Rolls
- 6.3
- 3.7
-1.6
- ·3.3
-4.5
-6.2
--0.9
Zero
-1.6
-4.3
-3.0
-5.4
--0.5
- 1.0
Building
Following sizeable increases in the two preceding
months, the value of building permits issued in eighteen
District cities declined somewhat more than ~nally
'I
in November. The value of permits fell 16 per cent
below a year ago, narrowing the 1937 gain over 1936
for the year to date to 10 per cent.
Building permits issued by eighteen District cities:
PERMITS
Albuquerque, N. Mex .... .
Cheyenne, Wyo .............. .
Colorado Springs, Colo.. .
Denver, Colo................. .
Hutchinson, Kans .......... .
Joplin, Mo.·--········· ......... .
Kansas City, Kans ....... .
Kansas City, Mo ........... .
Lincoln, Nebr..- ............. .
Oklahoma City, Okla......
Omaha~ Nebr ...................
Pueblo, Colo.... _............... .
Salina, Kans .................... .
Shawnee, Okla................ .
St. Joseph, Mo ...·- ········· ··
Topeka, Kans .................. .
Tulsa, Okla..- ................. .
Wichita, Kans ................ .
ESTDIATED COST
1937
1936
~
~ $
27
61
484
74
14
24
110
94
141
89
45
9
15
16
49
62
141
41
44
414
65
18
34
147
90
161
103
42
15
15
38
49
86
168
1937
89,000 $
32,000
28,000
398,000
41,000
21,000
39,000
163,000
132,000
395,000
261,000
16,000
18,000
7,000
6,000
38,000
300,000
112,000
1936
416,000
66,000
44,000
504,000
50,000
38,000
29,000
158,000
70,000
345,000
252,000
15,000
25,000
12,000
36,000
40,000
236,000
154,000
November·---·········- ········· 1,507 1,617 $ 2,095,000 $ 2,490,000
October....... ................ ..... 2,212 2,232
3,938,000
3,868,000
Eleven months·-············· · 22,032 19,833 39,321,000 35,692,000
Lum.her
Retail lumber sales, measured in board feet, showed
about the usual seasonal decline in November. As
in the preceding month, sales were sharply lower than
a year ago, the November decrease measuring nearly
23 per cent. Total sales for the first eleven months of
the year now show a loss of more than 5 per cent as
compared with sales in the same period of 1936.
November collections averaged 32.3 per cent of
amounts receivable as compared with a ratio of 36.2
per cent in October and 40.3 per cent in November
of last year.
Lumber trade at 155 retail yards in the District:
November 1937
per cent change from
October 1937
November 1936
- 14.1
-22.5
Sales of lumber, board feet ...... .
- 18.6
-7.2
Sales of all materials, dollars ... .
- 2.5
+12.4
Stocks of lumber, board feet ..... .
Outstandings, dollars ................ .
- 3.3
+19.8
Lile Insurance
November life insurance sales were more than 10
per cent larger than a year ago, with the result that
total sales so far this year are now nearly 4 per cent larger.
The Life Insurance Sales Research Bureau report:
Change from
Nov. 1937
Oct. 1937
Nov. 1936
(In thousands of dollars)
Colorado._.............................. .
6,987
~~o~c:::::::~:::::::::::·:::::::::
~:
Nebraska...................... ...... ...
New Mexico. ··-········· ............. .
Oklahoma._ ............................ .
Wyoming ..................... ......... .
8,098
17,918
5,194
1,221
8,691
1,141
+73
+771
+932
-46
+176
+602
+101
+890
+1,740
+697
-833
+207
+1,219
+~o
~nii:;~~~.·~~=~~~~~~~~~~~~~~~~~:~
48,250
673,346
+2,616
-6,359
+4,470
+10,880
8
REVIEW OF . AGRICULTURAL AND BUSINESS CONDITIONS
NATIONAL SUMMARY OF BUSINESS CONDITIONS
By the Board of Governors of the Federal Reserve System
INDUSTRIAL PRODUCTION
PERCENT
PERCENT
140
140
130
130
120
A
\
~
,~
110
~
\
~
80
\V\
\
\ 90
~
I\ V
I\
110
I \ ~v
\r~
...
\
ro
r
)~
/W
A
120
~
80
M
~
w
~
1929
1930
1931
1932
1933
1934
1935
1936
1937
Index of physical volume of production, adjusted for seasonal variation , 1923-1925 average
100. By months, January 1929 through
November 1937.
=
FACTORY EMPLOYMENT AND PAYROLLS
Ptllct!NT
PE R CEN T
120
120
110
100
r..A
~
110
t-i
~
/2 ,J
v :
q Employment
A. /V ,,
_-.. ,l ''"'l
I
\"':"\
\ v J i-\,~,,J , '•
90
100
• 90
I\
80
70
60
Payrolls _
\
50
40
\j,
.
80
70
60
! '-- :
I
I
40
30
1929
1930
1931
1932
1933
1934
1935
1936
In November, volume of industrial production continued to decline sharply,
and employment and pay rolls also decreased. During the first half of November
commodity prices declined further but for the past month they have been steady.
PRODUCTION AND EMPLOYMENT
Volume of industrial output, as measured by the Board's seasonally adjusted
index, declined from 103 per cent of the 1923-1925 average in October to 90 per cent
in November, reflecting chiefly a sharp reduction in the manufacture of durable
goods. There was a further curtailment of activity at steel mills and output for
the month was at a rate of 38 per cent of capacity, a decline of one-third from October.
In the first weeks of December steel production was at about 28 per cent of capacity.
Output of lumber and plate glass also declined substantially in November, and automobile production showed considerably less than the usual seasonal increase. Production of nondurable goods, which had decreased by a substantial amount earlier
this year, declined further in November, reflecting a continued reduction in output
of textiles and shoes, partly offset in the total by an increase in activity at sugar
refineries. Output of minerals, as well as manufactures, declined in November.
Thereweremarked decreases in output of bituminous coal and in iron ore shipments,
while crude petroleum production continued in large volume.
Total value of construction contracts awarded, as reported by the F. W. Dodge
Corporation, showed little change in November and the first half of December.
Awards for privately-financed projects declined, reflecting chiefly a further reduction
in residential building, while contracts for publicly-financed work increased.
Employment and pay rolls at factories showed an unusually sharp decline
between the middle of October and the middle of November, and there were decreases
also in the number employed in trade and other nonmanufacturing lines. The
Board's seasonally adjusted index of factory employment was at 94 per cent of the
1923-1925 average in November as compared with a level of 102 last summer and
96 in November last year. In the steel, machinery, lumber, and textile industries
the number employed decreased by substantially more than the usual seasonal
amount, and there was some decline at automobile factories, although an increase
is usual at this season. There were declines also in the seasonally adjusted indexes
for most other lines, except foods and tobacco which showed little change.
1937
AGRICULTURE
Indexes of number employed and pay rolls,
without adjustment for seasonal variation, 19231925 average
100. By months, January 1929
throug h November 1937. Indexes compiled by
the United States Bureau of Labor Statistics.
=
WHOLESALE PRICES
PER CE NT
PERCENT
Department of Agriculture estimates recently issued indicate that most crops
will be about the same size as forecast earlier but that cash farm income will be
lower than had been anticipated, largely because of price declines both for crops
and live stock. Cash income in 1937 is expected to be $8,500,000,000, as compared
with $7,918,000,000 in 1936. The increase over a year ago is due primarily to increased income from marketings of wheat, tobacco, and fruits and to larger Government payments.
120
120
110
110
DISTRIBUTION
100
Distribution of commodities to consumers, which earlier had been maintained,
declined slightly in November. There was a slight decline in sales at department
stores, and mail-order sales decreased considerably, while sales at variety stores
showed little change. Preliminary information for the first half of December indicates that department store sales increased by approximately the usual seasonal
amount.
Freight carloadings declined by considerably more than the seasonal amount
in November and the Board's adjusted index for that month was 71 per cent of the
1923-1925 average as compared with 76 per cent in October and an average of 81
per cent in the fi rst half of the year. The decline from October to November reflected principally marked decreases in loadings of coal and miscellaneous freight.
100
90
~"-
-
'"'
80
70
50
1929
-
"
~
1931
1932
1930
,d
-.,
.,. /
o
90
eo
70
.I
60
50
1933
1934
1935
1936
1937
Index compiled by the United St ates Bureau
100. By months,
1929 to 1931; by weeks, 1932 to date. Latest
figure is for week ending December 18, 1937.
of Labor Statistics, 1926
=
MEMBER BANK
81..UONSOFOOU..MS
17
16
I
15 >--
,.
11
...,"'\
,_,:,r
Total Loont
-.....
·~~
ond lnvestm.,,ts
.-
"'
·--....
~-
I
I
-
1936
21
J"--r-..
~"-
J. .,.1-.r'
Totol Loon,
I
- on...I
~ 'J~,._,,.-v
193 7
'34
1935
22
20
-1-fo,,,n::t(
U SG<Mo.,,o.;11
1935
v
I.J
:d~~'
Tfmt()epoaill
....
'34
24
23
,--,.,.,,/".._I \A.
A
I
~
-
Obl1Q01ion1
8olancesof
- 1 - - - BaM.s inU S
8 tLLIONS OF DOLLARS
I
.....
-~'I.,
I
13
12
I
Deffiand Oepca,1t1•
1111,.,.led ~
CREDIT
COMMODITY PRICES
1936
1937
W..-.,1t::H.la y 1igures for r eporting m ember banks
in 101 leading cities. September 5, 1934, through
December 15, 1937.
11
10
The general level of wholesale commodity prices, which had declined sharply
from the latter part of September to the third week of November, has shown little
change since that time. Prices of nonferrous metals, leather, wool, textile yarns,
and finished cotton goods have · declined somewhat further in this period, while
steel scrap, hides, rubber, cotton, print cloths, and bituminous coal have recently
shown some advance.
BANK CREDIT
Excess reserves of member banks showed a small decline but for the first three
weeks of December remained somewhat over $1,000,000,000. The increase in
demand for currency during December has been smaller than usual, reflecting largely
the effects of the recent sharp decline in business activity and pay rolls.
Total loans and investments of reporting member banks in 101 leading cities
increased somewhat during the four weeks ending December 15, reflecting a growth
of $190,000,000 in holdings of United States Government obligations, mostly in
New York City. A factor in this increase was the purchase by banks of the December
15 issues of Government securities. Commercial loans, which had begun to decline
in October, showed a further reduction.
@FedFRASER