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THE MONTHLY REVIEW (overing (ondition1 in the Tenth Federal <J?eerve 'Dutrict Federal Reserve Bank of Kansas City M. L. McCLURE, Chairman Board of Direclors C. K. BoAR.DMAN, Assistant Federal Resn-ve Agmt and Fedn-al Reseroe Agent and Setretary VoL.9 KANsAs CITY, Mo., STATISTICAL RECORD OF THE TENTH FEDERAL RESERVE DISTRICT FOR 1923 COMPARED w·TH THAT OF 1922. Bank Debits, 16 cities............ $13,577,604,ooo Inc. · 7.8% Business failures, District Number ........................... . Liabilities·--····················· 34,024 Inc. $107,183,866 Inc. 9• I% 8.3% 933 Dec. 5.1 % $17,520,042 Dec. 31.8% Clearings, F. R. Bank Amount ............................ $8,817,168,509 Inc. 11.8% Checks.............................. 58,567,542 Inc. I 1.0% Crude oil Prod'n, 4 States Barrels ............................. . 230,998,700 Inc. 13.0% Farm Crops, 7 States, Value.. $i,345,752,ooo Inc. 11.0% Flour Prod'n, South western mills, Bbls ......................... 20,770,909 Dec. 1.3% Grain Receipts, 4 Markets Wheat, Bushels............... . Corn, Bushels ................. . Oats, Bushels·--··-··········· 121,510,000 Dec. 19.0% 53,615,980 Dec. 9.8% 35,841,200 Inc. 59.8% Lead Ore shipped, 3 States 1~ons................................. . Value ............................... . 89,423 Dec. 10.5% $8,453,487 Inc. 18.9% Live stock receipts, 6 markets Cattle............................... . Calves .............................. Hogs.................................. Sheep ................................ Horses and Mules·-········· 6, 159,939 Inc. 5.5% 995,745 Inc. :2.4% l 1,410,863 Inc. 26.5% 7,6o5,83 2 Inc. 11.8% 128,358 Inc.~30.3% Meat Packing, 6 Cen ters Cattle............................... . Calves............................. . Hogs ................................. . Sheep ................................ 2,909,660 6o6,767 8,937,96 1 3,7°4, 2 45 No. 2 HE YEAR 1924 opened with conditions- generally more favorable and more promising for the Tenth Federal Reserve District than those which prevailed at this time last year. The statistical reports and summaries, portraying the experiences of the past twelve months, disclose evidences of substantial improvement in all basic industries in this distinctively commodity-producing region of the United States. T The Situation at A Glance Building, I 8 cities Permits._ ........................... Value ............................... . FEBRUARY 1, 1924 Inc. 8.4% Inc. 27.0% Inc. 22.0% Inc. 15.4% Metal Mining, Colo., Value.... $21 ,596,453 Inc. Zinc Ore Shipments, 3 States Tons................................ Value ............................. . 697,531 Inc. 33.9% $28,568,578 Inc. 56.6% 4.3% Agriculture, first of all, demonstrated to an extent its capacity for recuperation. There was a larger physical volume of cropsexcept of wheat, rye, potatoes and cotton-than was produced in the previous year. The value of the year's crops at the farms exceeded the values in 1922 by over 100 million dollars, or about II %, for the District. With agriculture, however, conditions were and still are, "spotty." Over the greater portion of the agricultural area crop yields were abundant. In certain sections crops were short or were almost a failure, and in these sections the fa rmers did not share as largely in the benefits derived from the increase of crop money. On the whole there was improvement, though it was apparent that some of the problems affecting the welfare and prosperity of the farmers of the District were still awaiting solution at the beginning of 1924. The live stock industry made good progress, though some of the effects of the depression of two and three years ago are still noticeable. The movement of live stock to the markets last year was heavy beyond anticipation, indicating tremendously large production. However, this movement was greatly augmented by the enforced marketing of animals from dry sections as indicated by the January reports, which showed fewer animals on farms in these sections than were reported one year ago. The petroleum industry, which during 1923 was somewhat depressed by over-production of crude oil, now exhibits signs of materi al recovery under improved market demand for products; some price advances in both crude oil and refined products have been announced this month. Lead and zinc mining in the Missouri-Kansas-Oklahoma district experienced a year of high record production. A revival in precious metal mining in Colorado-augmented by improved prices of the baser metals-resulted in an increase in the volume and value of output in 1923 over that of 1922. Coal mining was more active during the year than in any previous year since 1920. Salt production increased perceptibly as a result of readjustments of freight rates which permitted operators to materially increase their marketing territory. In meat packing, fl.our milling, building material manufacture and other lines of factory production, there were heavy operations throughout the year, with current reports showing seasonal winter slowing down in some lines. Full employment of labor at good wages in the various lines of industry, in building, on highways and railroads, in mines and on farms, tended to increase the purchasing and consuming power. This Copy Released For Publication In Morning Newspapers January 29 THE MONTHLY REVIEW This was reflected in a tremendous-volume of trade during the year. The reports of wholesalers and retailers indicated some decline in the volume of sales during the last two months of 1923, which were followed by a slight-up turn after the holidays; but, taking the year from beginning to end, the volume of mercantile trade was greater than, that of either 1922 or 1921. Banking and Credit The credit requir'ements occasioned by so large a volume of business as indicated by the reports for the various industries and lines of trade were necessarily heavy during the year, but they were met at all times without any strain upon the credit structure. Deposits were maintained at high levels, and with steady liquidation· of indebtedness, the local banks were supplied with funds sufficient to enable them to handle the business with moderate borrowings from correspondent banks and from the Federal Reserve Bank. SHOWING BY MEMBER BANKS : As illustrating the volume and trend of credit extended by banks, the combined report of 73 Member Banks in selected cities of the District at the first reporti n'g date in 1924 showed an aggregate of $424,889,000 of loans and discounts, including rediscounts. This total compares ~ith $434,088,000 reported by 74 Member Banks December 5, 1923, and $447,370,000 reported ~y 81 Member Banks as of January 3, 1923. Investments of the reporting Member ~anks fluctuated narrowly. The total on January 2, 1924, was $138,662,000; on December 5 last year, $138,952,000, and on January 3 last year, $150,180,000. Gross deposits at the first reporting date in 1924 stood at $5'.28,656,000; on December 5 last year, the aggregate was $530,669,000; on March 14 last year, when loans were at the highest peak, the total was .$593,089,000; and at the first reporting date last year it was $580,036,000. CONDITION OF BANKS: Conditions affecting the banks of the District improved measurably, notwithstanding the fact that there were more bank suspensions in 1923 than in either 1922 or 1921. The suspensions were mainly of over-extended banks in sections where t here had been crop reverses, or of banks carrying unliquid loans contracted during the period of inflated PRINCIPAL RESOURCE AND LIABILITY ITEMS OF MEMBER BANKS IN SELECTED CITIES 73 Banks Jan, 2, 1924 74 Banks Dec. 5, 1923 J. Loans and Discounts (including redii:counts): (a) Secured by U.S. Govt. obligations___ ... $ 6,010,000 '$ 6,687,000 (b) Secured by stocks and bonds, other than 80,790,000 U.S. Bonds·-··-··········--- - - 78,453,000 (c) All other .. 340,426,000 346,611,000 •• Investments: (a) U. S. Pre-war honds ........ _ _ _ __ (b) U. S. Liherty bonds ...·-······----(c) U. S. Treasury bonds ................ ·-·-·······-· (d) U.S. Victory notes and Treasury notes.... (e) U. S. Certificates of lndebtednesll.--··-·(0 Other Bonds, Stocks and Securities.... - .. 11,540,000 44,756,000 3,254,000 15,836,000 2,849,000 6o,427,ooo J• Total loans and discounts, and investments.... 563,551,000 Reserve balances with F. R. Bank. ___ ............. Cash in vaul.....__ _ _ _ _· -- - - · · · · Net demand deposits on which reserve is computecL_······- - - Time deposits. _ _ __ Government deposits-----········-···· Bills payable and rediscounts with F. R. Bank secured hy (a) U. S. Govt. obligations..................... - ...... . (b) All other-···························-····-················· 40,872,000 13,352,000 4. 5• 6. 7. 8. 9. 11,439,000 46,571 ,000 3,991,000 15,751,000 3,189,000 58,on,000 573,040,000 44,794,ooo 12,394,000 395,38 1,000 131,528,000 1,747,000 397,361,000 132,917,000 391,000 11,752,000 16,983,000 21,052,000 23,905,000 TOTAL (Items 3 to 9 inclusive)·--··-··--·········$1,175,166,ooo $1,205,854,000 TRANSACTIONS OF THE FEDERAL RESERVE BANK OF KANSAS CITY IN 1923 Pieces Notes discounted or rediscounted for member banks. Bills bought in open market.. _ _ _ _ _ __ Amount 67,667 $901,125,313.31 260 4,018,001.49 Currency received and counted.·-····----····••48,535,317 156,299,840.00 Coin· received and counted .... _.. _ _ _ _ _ _ _ 65,467,640 io,337 ,540.00 U.S. Government coupons handled.·-······-·············· 2,863,313 20,684,367.00 Checks handled ...............·-·····-· -------58,567,54z 8,817,168,509.51 Collection items handled..... _________ z36,531 Transfers of funds, including 5% Red. FundTransfers ................·-··········------- n2,380 3,171,786,051.09 U. S. Securities issued, redeemed, cancelled or or exchanged .... _ _ _ _ _ _ _ _ _ 905,563 289,33z,178.10 U. S. Securities received from Treasury Department............................................. _ _ _ _ _ 186,894 161,340,950.00 U. S. Securities returned to U. S. Treasury........... - 1,010,600 z37,308,419.11 193,6o3,298.09 values immediately following the close of the World War. Throughout the year, and in practically every community, however, there were liquidations of indebtedness to banks. A considerable number of the suspended banks were reorganized and the old liability retired. Consolidations of banks were effected and many banks were made stronger by the infusion of new capital. FEDERAL RESERVE OPERATIONS: A larger use of the credit facilities afforded by the Federal Reserve Bank of Kansas City and its branches at Omaha, Denver, and Oklahoma City was reflected by the weekly reports of their discount operations covering the twelve months of 1923. In the opening weeks of t he year rediscounting by Memher Banks was in small amounts. The low point in total loans at the head office was reached J anuary 25, although the low point for the entire District was not reached until February 17, when the total was $16,049,490.74. During the week following that date loans took an upward turn. From then on through the spring, summer and autumn the weekly statements recorded an almost continuous increase in the volume of loans until the high point of $64,197,081.40 was attained December 3. After that date there was a considerable decrease in the total loans, principally accounted for by reductions in the borrowings of reserve city banks, altJ,ough the total at the first reporting date in 1924 was 26% above that of the first reporting date in 1923. During the year 653 banks in the District were accommodated for a total of $901,125,313.32, represented by 67,667 notes contained in I I ,689 applications. At the close of business on the last day of 1923 bills discounted and held by the Federal Reserve Bank of Kansas City aggregated $41,866,i4fi.98, classified as follows : Member Banks' Collateral Notes secured by U. S. Government obligations____ - - - - - - - - -····-···$10,84J,790•00 Customers' paper secured by U. S. Government obligations............ 358,794.53 Commercial paper...· - - - - - - - - - - · - - - - - 14,051,087.55 Bill of lading drafts .. _ _ _ - - - - - - 146,474.5z Trade Acceptances·--·····-------------6,000.00 Agricultural paper......... ----···-··········-·····-········---- 6,046,343.35 Agricultural paper secured by live stoc-._ _ _ _ _ _ _ _ 1014 14,'2.57.03 Purchases by the Federal Reserve Bank of Kansas City of acceptances and warrants from Member Banks during the year aggregated $2,015,856.99 and there were acquired from other Federal Reserve Banks i2,001,144.50, making a total of $4,018,001.49, of which $545,000 were held December 31, 1923. THE MoNTHL Y REVIEW 3 Government securities purchased for investment account during the year, including those purchased under resale contract for accommodation of Member Banks and Federal Land Banks, aggregated $107,859,150, and with $39,188,350 held at the beginning of last year made a total of $147,047,500. There were sold or redeemed during the year $32,629,200, leaving on hand December 31, 1923, a total of $14,418,300, of which '$7,250,000 were held under repurchase agreements. crease of 11 % from the total reported for- the corresponding four weeks ending January 3, 1923. Debits reported for the year 1923 in the 28 cities reached a total of $14,630,728,000. For an accurate comparison of bank debits for last year with those of 1922, the figures of 16 cities, available for both years, are used. The 1923 total for the 16 cities was f,13,577,604,000 against the 1922 total of t,12,589,938,000, an increase for last year of $987,666,000, or 7.8%. WAR FINANCE CORPORATION BUSINESS: The total amount advanced to the War Finance Corporation in the Tenth District through the Federal Reserve Bank of Kansas City and its branches during the year aggregated $54,759,230.88, of which there was outstanding at the end of the year $7,794,373.68. The total number of War Finance Corporation items handled during the year was 23,814. Savings=.Deposits and=Accounts GOVERNMENT FINANCING: During 1923 the Fiscal Agency Department of the Federal Reserve Bank of Kansas City handled for the U. S. Treasury Department subscriptions for eight new issues of Treasury Certificates and Treasury notes. The subscriptions in the District aggregated $93,795,100, against which the Treasury allotted $57,868,800. It may be of interest to note that the Bank handled the redemption of nearly 5,000,000 War Savings and Thrift Stamps during 1923, having an aggregate value of $23,565,000 and the total loss in handling this enormous volume of work was less than $50. Bank Debits Debits by banks of checks and drafts drawn against the accounts of their customers during the four weeks ending January 2, 1924, aggregated $1,035,6o7,ooo in 28 cities of the Tenth District as reported by Clearing Houses for their members. This total indicates a decrease of 2. 7% from the total reported for the previous four weeks ending December 5, 1923, and also a deDEBITS BY BANKS TO ACCOUNTS Jan. 3, 1923 to Dec. 26, 1923 (Incl.) 73,258,000 Atchison, Kans .. ·-····························'I, 138,994,ooo Bartlesville, Okla .. ·-·············- ········· Casper, Wyo ......... _ _ _ __ 202,689,000 128,358,000 Cheyenne, Wyo ... · - · · · · - - - Colorado Springs, Colo _ _ __ 149,278,000 Denver, Colo..................................... 1,944,188,ooo l 51,633 1000 Enid, Okla... .... ·-······························· Fremont, Nebr ....... _ _ _ __ 44,220,000 Grand Junction, Colo _ _ __ 35,34°,000 40,103,000 Guthrie, Okla ..........., ..· - - - 140,892,000 Hutchinson, Kans.·- ························· Independence, Kans _ _ _ __ n7,509,ooo Joplin, Mo ................. _ _ _ __ 167,591,000 Kansas City, Kans ....... _ _ __ 238,801,000 Kansas City, Mo.·--························· 4,168,727,000 Lawrence, Kans _ _ _ _ __ 53,593,000 McAlester, Okla....... _ _ _ __ 50,513,000 Muskogee, Oki _ _ _ _ __ 2 99,535,000 Oklahoma City, Okla. _ _ __ 940,750,000 Okmulgee, Okla. _ __ 101,141,000 Omaha, Nebr _ _ _ _ _ __ 2,456,353,000 Parsons, Kans ..... _ _ __ 40,312,000 Pittsburg, Kans. _ _ _ __ 75, 179,000 Pueblo, Colo ............. _ _ _ __ 209,374,000 741,848,000 St. Joseph M o ~ - - - -Topeka, Kans _ _ _ __ 188,362,000 Tulsa, Oki...__ _ _._ _ __ 1,187,777,000 Wichita, Kans ....... _ __ 544,410,000 Jan. 4, 1922 to. Dec. 27, 1922 (Incl.) $ 65,109,000 121,428,000 Percent Change 122,366,000 139,697,000 1,794,318,000 Increases during the past year of 7.6% in savings deposits and 10.7% in savings accounts in shown by statements as of January 1, 1924, of 60 commercial banks and savings institutions in cities of the Tenth District. The reports presented in the Monthly Review showed a consistent increase through the year-. During the month of December there was an increase of f,1,769,076 or 1.7% even though Christmas time withdrawals were quite heavy. The summary of savings deposits and accounts in reporting banks follows: DEPOSITS Banks Denver, Colorado.. _.. _ 8 Kansas City, Kans .. _. 4 Kansas City, Mo ......... 9 Lincoln, Nebraska._..... 3 Oklahoma City, Okla ... 6 6 Omaha, Neb..... ·--·-··· 6 St. Joseph, Mo ............. Tulsa, Oklahoma.......... 6 Wichita, Kansas .......... 6 6 Outside-.... Jan. 1, 1924 J 57,427,939 2,698,287 13,964,817 2,922,622 3,733,14o 7,630,749 9, 153,3°~ 5,6o6,617 2,240,942 2,342,059 Dec. 1, 1923 f, 56,300,700 2,661,131 13,375,316 2,892,332 2,2 91,375 2,325,043 2,247,328 Total.............................. $107,720,481 f,105,951,405 f,100,082,186 60 Jan. 1, 1923 $ 5~,819,092 2,378,084 13,090,320 ~767,81!1 3,';?.5,515 3,443,934 7;,:18,526 8,792,024 7,086,470 5,859,443 8;466,461 5,580,797 2,w1,8:., ACCOUNTS Banks Denver, Colorado........ 7 Kansas City, Kans.·--· 3 Jan. 1, 19z4 93,008 9,o49 Dec. 1923 91,129 8,704 89,995 14,238 12,081 Jan. 1, 1923 74,633 8,olf9 89,778 13,593 10,680 6o,073 53,708 21,122 307,475 1, 8 89,903 3 6 6 14,784 12,213 59,473 21,956 5 19,365 Outside ...............·-····-· 6 3 16,641 3~981 21,569 19,017 16,119 3~904 Total..-.......................... 53 340,383 336,829 Kansas City, Mo·---··· Lincoln, Neb ................. Oklahoma City, Okla... Omaha, Neb ................. St. Joseph, Mo ............. Tulsa, Oklahoma ...- ..... Wichita, Kansas.·-······ 6 1 7,697 15,136 3,039 Commercial Failures 130,074,000 189,302,000 3,663,887,000 28.~ 26.1 r3.8 307,015,000 972,146,000 2,301,331,000 194,608,000 705,938,000 170,751,000 I ,I 82,967,000 529,001,000 TOTAL...·-----················$14,630,728,000 *t,12,589,938,000 *-Debits of 16 cities are complete for both years, with a total of f,13,577,6o4,ooo upon which comparison is made with t,12,589,983,000, showiug 7.8% increase. Business insolvencies in the Tenth District last year numbered 933 and liabilities amounted to $17,520,042, as reported by R. G. Dun & Co. Compared with 1922 there was a decrease for the year of 51 failures and a decrease of $8,166,169, about 31.8%, in total liabilities. The record of failures in the District for the past five years is here shown: No. 1 9 1 9 · - - - - - - - - - - . -- - - - -- - · · ··:l61 1920..... - - - - - - - · · · · · · · · ···································-····•375 1921 ...............-----···················································883 19"'2:l....................................................................... - - - - 9 8 4 1923..... ----·····································································933 -Year Liabilities '$ 3,287,855 10,190,370 z7,347,6 2 4 25,686,211 17,5w,042 Th.e December reports showed an increase of 21 in number of failures and an increase of $1,306,633 in liabilities over November. There was also an increase for the month of 33 failures over December, 1922, but the amount ofliabilities was $5,358,641, about 70%, less than the total in December, 1922. The THE MONTHLY REVIEW 4 December record of failures in the United States by Federal Reserve Districts ; (United Stales Department of Agriculture Crop Reports) 1923 132,143,000 284,978,000 321,097,000 285,823,000 26,100,000 264,975,000 30,636,000 1922 $ 104,6o4,ooo 288,759,000 279,075,000 256,381,000 18,979,000 239,480,000 24,581,000 Seven States.. ·------···························-· 1,345,752,000 United States...... ..... $9,470,976,000 $1,z11,859,ooo $8,445,979,000 LIABILITI NUMBER Districts Dec. 1923 Dec. 1922 Dec. 1923 $ 2,149,587 First, Boston·-··························· 157 148 Second, ew Yor____ 382 407 , 8,710,337 Third, Philadelphia-................ 109 73 2,272,823 Fourth, Cleveland.................... 155 n7 3,006,938 Fifth, Richmon....._____ 98 108 7,4i3,6o6 Sixth, Atlant.._____ 94 109 1,370,250 Seventh, Chicago _ _ _ _ 234 257 5,148,003 Eighth, St. Louis_ .. _ _ _ 96 84 1,954,500 Ninth, Minneapolis.................. 93 94 2,842,381 2, 199,495 TENTH, KANSAS CJTY.-----····· 96 63 Eleventh, Dalla.,_____ 148 129 2,o46,743 2,500,067 Twelfth, San Francisco __·····-· 179 225 i:c. 1922 1,610,876 9,879,8 29 4,267/289 3,519,347 11,236,262 1,576,358 9,075,862 897,491 1,224,152 7,558, 1 36 2,n8,6o7 5,104,812 '/, 51,614,730 '/, 58,069,021 539,386,806 629,896,251 Total, U.S. December·----····· 1,841 Total, U.S. Year _ _ _ _ .18,718 Building Building in cities of the Tenth District continued quite active in November and December, but was practically suspended during January on account of the severity of the winter weather. The showing made in December, of 1,585 permits granted for buildings aggregating $7,152,975 in eighteen cities, was exceptionally good as bringing to a close a high record year of activity in most of the cities of the District, besides indicating brisk operations in the spring. The number of permits granted in December was 35.% below the November total, about the usual winter decrease, and it was 5.7% below the _total for December, 1922. But in the value of building authorit.ed by permits the December total was 9% greater than that for the previous month and 1.5% greater than that for December, 1922. The building record for 1923, complete for the eighteen cities reporting, shows 34,024 permits granted and $107,183,866 as the value of buildings. Compared with the record for 1922 of the same cities, these figures indicate an increase of 9.2% in the number of permits and an increase of 8.3% in building values. Employment In spite of the fact that unemployment is genera.Uy greatest at this time of the year, the reports from over the Tenth District indicate that the number of unemployed is not greater than should be expected. The United States Employment Service, BUILDING IN 18 CITIES OF THE TENTH DISTRICT YEAR 1922 YEAR 1923 No. Estimated No. Extimated Per Cent Permits Value Permits Value Change Casper, Wyo·--·····-·- 1,z57 $ 4,063,579 537 $ 1,032,~6 293-5 Cheyenne, Wyo·-·-······- 44'l 1,031,289 -20.3 435 1,293,986 Colorado Springs, Colo•.. 1,145 1,912,3z3 1,085 1,199,677 59-4 6,546 18,016,095 Denver, Colo·-·····-···--- 6,913 zo,641,850 14.6 Hutchinson, Kans·-·-···- 390 747,272 489 1,199,872 -37.7 Joplin, Mo._____ 134 403,759 11 3·3 94 189,z65 Kansas City, Kans ......... 1,955 5,235,140 1,154 3,290,033 51.1 5,624 23,092,890 Kansas City, Mo.·---···· 5,747 24,840,955 7.6 Lincoln, Nebr _ _ _ 1,320 3,196,6n 1,099 2,940,687 8.7 Muskogee, Okla--···· 463 1,z92,399 450 2,137,494 -39.5 2,36o Oklahoma City, Okla._ .. 2,427 7,948,514 7,699,096 3.2 Okmulgee, Okla.._........... 253 1,027,050 283 1,215,775 -i5.5 Omaha, Nebr _ _ _ 2,853 13,008,899 1 5·7 2,740 II,246,075 843 1,215,661 -26.1 Pueblo, Colo·--··--········ 882 898,188 St. Joseph, Mo·-······---- 1,027 1,819,430 890 1,237,419 47.0 Topeka, Kansas.... - ........ 1,578 4,810,407 1,195 2,441,128 97.o Tulsa, Okl..__ _ _ _ 1,876 7,793,302 2,085 13,537,188 -42.4 Wichita, Kans·-·············· 3,362 6,511,899 3,257 5,940,794 9.6 Total, 18 Cities._...........34,024 $107,182,866 AGGREGATE VALUE OF CROPS IN SEVEN STATES, 1923 COMPARED WITH 1922 31,166 $98,925,831 8.3 Colorado---------~-··········$ Kansas.·-------······-······················ Missouri __·-------····························· Nebraska...·--·····-················································· New Mexico.. ____________ Oklahoma.......·- - - · ···································· Wyoming._ ............................................................... Department of Labor, for the West North Central District reported January I 5 no marked changes in the general industrial and employment situation. There was the usual closing down in the manufacturing plants which accompanies inventory taking. Sharp reductions in forces employed in railroad shops was an outstanding feature, but it should be noted that capacity forces were employed in the shops until a short time ago. Building operations have slackened since last month, but that was to be expected. Lead and zinc mining proceeds on a part time basis with employment outlook in this indust'r y regarded as satisfactory for the balance of the winter season. Road construction is off to some extent, but still absorbs much common labor. Very little demand for farm help. Agriculture FARM VALUE OF 1923 CROPS: On a basis of the December price the farm value of all crops produced in the states of Colorado, Kansas, Missouri, Nebraska, New Mexico, Oklahoma and Wyoming during 1923 was $1,345,750,000, or $133,893,000 greater than the total farm value of crops produced in these states in 1922, according to the final summary presented by the United States Department of Agriculture. The total for the seven states named represents 14.2%, approximately one-seventh of the entire farm value of crops produced in the United States, which aggregated $9,470,976,000 for the year. In 1922 the farm value of c~ops in the United States was $8,445,979,000, of which the Tenth District's share was 14.3%. The statistical summary of the Department shows increased farm values over those of the previous year in six of the seven states. Kansas farm values decreased 1.7%, which was a very small matter when it is considered that the state's principal crop, wheat, was 23.7% short of that for 1922. Colorado's farm values increased 26.3% over those of 1922; Missouri's 15.7%; Nebraska's 11.4%; New Mexico's 37%; Oklahoma's 10.2%; Wyoming's 24.6%. Corn, now the leading crop in the District, showed an increased yield over 1922 of 132,787,000 bushels and an increased farm value of $87,593,000. This more than offset a shrinking of $80,374,000 in the value of the wheat crop, which was reported as 66,510,000 bushels short of the 1922 crop. The increased farm value of the oats crop was $20,224,000, and the barley crop was worth $6,704,000 more, though rye followed the course of wheat and showed losses in both yield and value. Potatoes, ·with 3,534,000 bushels less, was greater in value by $8,609,000. Sweet potatoes, grain sorghums, and sugar beets increased in production and value. The broom corn crop was more than double that of 1922 and the value of the crop increased $2,512,000. Hay, with a 2,242,000 larger tonnage produced was given a farm value $30,630,000 greater than the value placed 1 THE MONTHLY REVTEW bushels, the smallest of rec,1rd-for four years. Receipts of grain for the year 1923 are here shown for each of the four markets, with the total for the year 1922 for comparison: INDEX NUMBERS OF FARM PRICES BY MONTHS FOR THE YEARS NAMED (U.S. Department of Agriculture) (100-the average price on December l in 43 years, 1866-1908, of wheat, corn, oats, barley, rye, buckwheat, potatoes, hay, flax and cotton.) 1922. 1920 1923 120.5 296.7 January·-- ····················•······························154.7 123.6 311.0 February .......................----·········158.2 March .......................................................... 163.9 138.1 314.3 140.6 334.1 April...·-····-············-·-·······---················--··· 169. 1 1 44·5 362.1 May ····-···-·--.. ··········· ·· ························· .. ·····17 5.0 June .............................................................. 163.6 148.4 380.4 146.1 July _................................... ·--·····················170. 5 374.0 August .......................................................... 168.1 145.6 32.9.8 294•7 September............ ........................................ 168.8 138.2 135·5 October........................................................ 172. 5 248.7 201.I ovember .. ................................................ _172. 5 142.3 150.0 165.5 Decem her...... ·······················-····················· 169.3 5 1913 110.9 112.6 113.3 113.6 u6.2 121.2 122.9 I'.25.4 136.3 139.1 1 33·9 132.7 Kansas City_, Omaha.......- ..... St. Joseph........ Wichita ............ Wheat 68,733,900 22,631,400 10,150,000 19,995,600 Corn Oats Rye Barley Kafi.t 17,575,000 13,984,200 337,700 1,623,000 1,772,100 23,370,200 19,n2,ooo 1,499,400 1,26o,800 ...... _ .... 10,165,500 2,198,000 25,500 166,250 19,500 2,505,280 547,200 9,600 255,200 95,400 --- --- --- --- --- Year 1923........ 121,510,900 53,615,980 35,841 ,400 1,872,200 3,305,250 1,887,000 Year 1922........ 149,977,ooo 59,458,800 22,430,6oo 2,498,800 2,029,750 3,310,300 December arrivals of 8,606,000 bushels of wheat at the four markets was the smallest total since last June. Arrivals of 7,992,650 bushels of corn were 51% heavier than in November, this large increase being due to the marketward movement of the new crop of corn getting a late start. Flour Milling on the 1922 crop. Cotton, though showing a decrease of 41,000 bales in the District, was valued at $22,277,000 more than the larger crop grown in 1922. FARM LAND VALUES: Reports from over the Tenth District show generally more firmness in the value of farm lands than has been noted at any other time since the depression that was brought about by precipitate declines in prices of farm products and livestock. The advance in market prices to higher levels in the past twelve months brought renewed confidence in this industry and in the value of farm lands, with indications of pronounced activity in farm investment during the early part of the present year. CROP OUTLOOK FAVORABLE: The mild weather which prevailed through ovem ber and on to the closing days of December was generally favorable to agriculture in all sections of the Tenth District, and with heavy to light snows and hard freezing of the soil in the first half of January, the crop outlook is more promi~ing than at this time a year ago. Winter wheat is reported in satisfactory condition and with the snow covering as a protection, growers are anticipating a good crop, although the acreage sown to winter wheat in the seven states, which as a whole or a part are in the Tenth District, is 13.7% less than the acreage sown in the fall of 1922. This percent of decrease was 1.1% higher than the decreased acreage of winter wheat sown for the entire United States, as indicated by the reports of th e Department of Agriculture. FARM OPERATIONS: Farm work made generally good progress during the last weeks of 1923, except in a few sections of the District where it was interrupted by rains. Fall plowing con tinued until well into the winter, due to low temperatures and moist soil. Corn husking was practically finished by Christmas time, and other late crops were harvested . . Deliveries of sugar beets by growers were completed and sugar refinery operations for the season were brought to a close. Cotton picking and ginning, after delays by excessive rains were rushed and by the end of the year but little cotton was still in the fields. Grain Movements Receipts of wheat at Kansas City, Omaha, St. Joseph and Wichita last year totaled 125,510,900 bushels, the smallest yearly ·olume of wheat received at these markets since 1920. Receipts of corn totaled 53,615,980 bushels for the year and were smaller than tho e of 1922 but larger than receipts in 1921 and 1920. The total of 35,841,400 bushels of oats received was the largest in four years, while the total of 1,877,200 bushels of rye was the smallest reported in four years. The year's movement of barley to these markets aggregated 3,305,200 bushels, the largest since 1920. On the other hand receipts of kafir were only 1,887,000 Production of flour at southwestern mills during 1923 totaled 20,770,909 barrels, which was 1.3% below the total produced in 1922. Production in December was about 10% below that for 1 ovember and 7.8% below December, 1922. The following, compiled from the Northwestern Miller's weekly reports from southwestern mills manufacturing 65% to 70 % of the entire output of flour for the District, shows total production and the percent of operation to capacity at the leading centers in December and the yearly totals for these mills: Production Barrels Kansas City..................................................................... ... 393,080 98,578 Om aha·---···························-············································ Salina..................................................... ............................ . 84,706 94,171 St. Joseph_ ....................... ·-····················-························· Wichita_·····-···································································•··· 149,531 Outside .... ..................................................... _ ................... . 859,31 2 Percent Capacity 59-7 97-4 .p.z 45.5 53.o 59.8 December, 1923.................................................................. 1,679,37S ovember, 1923 ........ ...- ................................ ................... 1,868,035 December, 1922....... ........................................... ·--··········· 1,882,342. Year, 1923 ..........................................................................20,770,909 Year, 1922 .......................................................................... 21,045,314 Live Stock MARKET RECEIPTS IN 1923: During the twelve months of 1923 a total of 26,300,737 head of live stock of all classes were received at Kansas City, Omaha, St. Joseph, Denver, Oklahoma City and Wichita. This total compares with 22,737,07r head received at these markets in 1922, a-n increase of 3,563,666 head, or 15.6%. The number of cars oflive stock received was 395,372, against 359,073 received in 1922. The reports show increases in receipts for 1923 over those of 1922: of cattle 320,854, or 5.5%; of calves 23,229, or 2.4%; of hogs 2,387,628 1 or 26.5%; of sheep 802,100, or 11.8; of horses and mules 29,855, or 30.3%; and of cars, 36,299, or 10.1%. The receipts at each of the six markets during 1923, with combined yearly t: ,t,il , are here shown: Cattle Calves Kansas City.......................... 2,631,808 Omaha ............ .... _................ I ,684,66 5 St. Joseph._ ........................... 6o7,829 Denver.........- ....................... 561,261 Oklahoma City .................... 337,9'27 Wichita.................................. 336,396 576,121 108,267 100,730 58,621 76,6o9 75,396 6 Markets, 1923............ .'..... 6,159,939 6 Markets, 1922........ .·-······5,839,o8 5 995,745 972,516 Hogs Sheep 3,615,205 1,671,145 3,649,496 2,969,652. 2,456,962 979,488 495/2 9'- 1,856,578 9,280 487,856 796,052 l 119,689 Horses Mules 4'2,987 16,809 15,199 22,591 8,019 22 ,753 u,410,863 7,6o5,832 128,358 9,023,235 6,8o3,73z 98,50.3 6 THE MONTHLY REVIEW The..six -live stock markets are now experiencing a seasonal slowing .down in the marketing of all classes of live stock except hogs, of which a heavy winter supply is moving through the m~rkets. December receipts at the six markets were 448,847 cattle, 69,39.0 calves, 1,ou,159 hogs, 447,586 . sheep and 9,974 horses · and mules. Increases were recorded for all dasses of animals, except sheep which were 2.3% less than in December, 1922. . Meat Packing Operations in the beef killing departments of packing houses at the various centers of the Tenth District declined seasonally during the month of December, falling 7.9% below November and 9.1% _below. December, 1922. The number of calves purchased by packers was 24.3¼ less than their November. purchases, although exceeding those of a year ago by 21.2%. With liberal supplies of hogs at the markets pork packing was 10.4% greater than in the previous month, but did not come up to the record :>f December, 1922 by 5.9%. In the killing of sheep and lambs for the trade there were increases for the month of 37.6% over November and of 5.3% over December one year ago. The packing record for 1923, as shown by the stock yards reports of purchases, at six markets, exhibits increased slaughter of all classes of meat animals. There was an increase of 8.4 % over 1922 in the number of cattle killed. Calves and hogs purchased by packers were the largest in number of record for five years, calves increasing 27% and hogs increasing 22% over 1922. It was also a year of heavy operations in the killing of sheep and lambs, with an increase of 15.4% over 1922. The year's purc~ases by packers is here shown: 954,886 373,228 II2,001 216,160 68,474 Calves Hogs Sheep 374,453 2,721,412 1,100,978 44,469 2,779,897 1,669,095 7o,998 2,ooo,739 743,897 18,501 169,071 393,482 419,267 . . 4,448 62,985 623,16.4 16,774 35,3bI 6 Markets, Year, 192J••················-··-··2,go9,66o 6 Markets, Year~ 1922 .......... ·-··-·········2,683,625 606,767 8,937,961 3,7°4,245 477,833 7,328,410 3,209, 255 Cattle Kansas City.......... _................................ 1,184,911 Omaha.......... _ _ _ _ _ _ St. Jos~h··············---Denver............ --"'-_,____ Oklahoma City...................................... Wichita........................... _ _ _ _ Petroleum Production of crude oil last year in the four producing states of the Tenth District-Oklahoma, Kansas, Wyoming and Colora~o-:-broke all previous yearly records with a daily average flow of 632,873 and a yearly o.u tput of 230,998,700 barrels. The figures on both daily an1 yearly pr.oduction are those of the United States Geological Survey, with the exception of totals for December, 1923, which are those of t~e American Petroleum Instjtute and, therefore, subject to revision. The summary of pro~~ction (ollows:. · · YEAR.LY PRODUCTION *1923 Bbls. Oklahoma.. ............................159,136,goo Kansas.......... _ _ _ _ 28,042,200 Wyoming...... _ _ _ __ 43,751,200 Colorado_ _ _ _ _ _ 68,400 1922 Bbls. 146,535,000 31,558,000 26,225,800 97,200 DAILY AVERAGE *1923 Bbls.1922 bbls 435,997 401,466 76,825 86,460 II9,864 71,852 187 266 Four States...·-···:·········-·····230,998,700 204,416,000 632,873· · · 56o,044 *-Eleven months official United States Geological Survey; December estimated, American Petroleum Insti tute. During December the daily average fell 46,330 barrels below t~at for ~ovember and the aggregate for the 31-day month fell 796,300 ·barrels below that for the 30 days of November. The decline was mainly the result of previous curtailment of developments, ·principally in Oklahoma and Kansas, in an effort to check over-production, although some part of the decline may have been ·due to seasonal weather conditions. The daily-average for the entire year, however, exceeded that for 1·922 by 72,829 barrels and the total yearly production was 26,582,700 barrels, about 13%, greater than that for the previous year. The number of wells completed in Oklahoma, Kansas and Wyoming last year was 6.9% less than in 1922, although the number of barrels daily new production brought in was o.6% greater than during the previous year. There were more dry wells by 17.4% and more gas wells by 1. 7% last year than were reported for 1922. A summary of field operations in three states during the year: Wells Bbls. Daily · Completed New Prod'n Okl~hom....__ _ _ ···································5,833 1,277,936 ~:s~~g:::::::::::::::::::=::::::::::::::···············~···: '!~i 1 Year, 19231----····································••7,688 Year, 192 ................................... 8,257 I :~;~l: 1,465,853 1,457,622 Dry Gas Wells Wells 1,731 . 587 535 63 4o 4 2,3o6· 654 1,965 6:43 New development work in the oil fields of the District on December 31 was 3% Jess than at the close of November and 21.9% less than one year ago. Of r,806 rigs and wells drilling at the end of December 1,190 were in Oklahoma, 180 in Kansas and 436 in Wyoming. Stocks of crude oil on hand in pipe lin~s and tank farm storage in Okiahoma and Kansas were the highest on record, having increased month by month from 87,830,033 barrels on December I, 1922, to 108,835,451 barrels on December I, 1923. Refin ery stocks in Kansas and Oklahoma at the end of November, 1923, included 136,857,389 gallons of gasoline; -17,109,946 gallons of kerosene; 90,344,907 gallons of gas .an.d. fuel oil; 13,007,525 gallons of lubricants; 3,313,108 pounds .of wax, and 4,431,846 of other products. Colorado and Wyoming showed proportionally heavy stocks which included 102,329,927 gallo.rrs of gasoline; 5,325,184 gallons of kerosene; 30,057,682 g·allons of gas and fuel oil, and 5,759,288 gallons of lubricants. Precious and Rare Metals Mines in Colorado last year produced precious and rare metals valued at $21,596,453, against $20,699,932 in 1922. The increas~ of $896,521 in the total was chiefly in the value of zinc, ·le~d and gold. Total production and value of Colorado's metal mines in 1923 was: Gold, 320,000 ounces at $20.67 ............ .................................................... f, · 6,614,987 Silver, 5,600)000 ounces at 82 cents·----····································· 4,592,000 Lead, 41,500,000 pounds at 7.3 cents·-·-······,······ _ _ _ 3,029,500 Copper, 3,400,000 pouhds at 14.5 cents...·-···············----·493,200 Zinc, 53,000,000 pounds at 6.6 cents........................................................ 3,498,000 Radium ores, I ,ooo tons............................................................................ 840,000 Chemicals from ores ..........................- - - · · · ····································· 1,072,016 Tungsten, Boulder county._....................................................................... 750,000 Manganese Silver ores, Leadville.............................................................. 375,000 Globe Smelter, arsenic, thaleum, and cadmium.................................... 301,250 Ferro-vanadium, Boulder City ....... :........................................... ·-·········· I 8,000 Bismu.t h from Colorado ores..........:........................................................... · 12,500 Totals for i923 .... "·····················"················•················································$21 1596,453 The price of lead·, reaching a high level late in the year, greatly stimulated mining activity and eighteen districts in Colorado now produce lead. THE MONTHLY' REVIEW Zinc· and Lead Mining . 7 Mercantile Shipments of zinc blende ore from the Tri-State .district in . ·WHOLESALE: Marked decline in the volume of sales in Decem.ber were large, being exceeded.last year only by the shipDecember from those in November were reported by wholesalers men ts in March. The month•s total of 76,952 -ton·s shipped · o f dry goods, groceries, f\lrniture and drugs, while hardware brought an average price of $40.80. This compares with 97,341 ·dealers reported a substantial increase for the month, and the tons sl1ipp_ed in December, 1922, with an average vaiue of $42.33. sales of wholesale millinery houses were more than double those This was the largest shipment, however, reported during that for the previous month. The sales :figures also show that trade v~ar. in December, 1923, was not up to that of December, 1922. The 1923 record of zinc shipmen ts surpassed that of all preMillinery was the only one of the six reporting lines to show an vious years in the Tri-State's history. In 1920 shipments aggreincrease, though the decline in sales of groceries was almost gated 561,333 tons, but in 1923 shipments reached 697,531 tons. The total value of all zinc ores shipped from the district during imperceptible a nd th at of drugs very light. December sales at the year aggregated $28 , 568,578 , an increase in value of more .. wholesale for the six lines reported are here compared ,vith those • than $10,000,000 over the year 1922. The average price paid for for the previous month and with those for the last month of · · ore during the year was $40.95 as compared with an average 1922..in percentages of increase or decrease: zinc price of $35,01 for--1922,-an increase in price of $4.17. SALES OUTSTANDINGS No. Dec., '23 Dec., '23 Dec. 31, '23 Dec. 31, '23 Shipments of lead ore during the month _of December were of compared compared compared compared Stores with with with with 9,950_tons ·with ·an average price for the entire month of $99.38. Nov., '23 Dec., '22 Nov. 30, '23 Dec. 31, '22 The month opened with a price of $85.00 per ton and advanced Dry Goods-·-··-·---····-· -10.2 -'.l.2 -22.9 -19.6 3 -'.21,8 -0.I -8.,3 -I4.5 by leaps and bounds to a price of $105.00 at which price the Groceries-·--····-····-·····7 IO -9.8 Hardware ........ ·---·-·-·-11.5 -9.1 8.5 month closed with a strong demand. This compares with a ship- Furniture __________________ -26.4 -29.1 - 1 3.5 7.0 4 6 -'.2.2 -5.0 -0.4 -9.9 ment of 6,520 tons in November at an average price of $80.32. Drugs---·-···------·-·-·---·· Millinery. _________________ 1.2 125.0 3 The aver.age pr.ice was '$92~97 in December, 1922. The value of lead ore shipped in 1923 was over i1,ooo,ooo greater than that A comparison of sales by reporting wholesale ho~es during of the previous year. the year 1923 with their sales during 1922, shows an increase Practically 65% of the mines closed down the last week in for all lines of 8.1% for last year. Sales of dry goods increased December for a period of one week. This shutdown was schedul- 8%, of groceries 8.9%, of hardware 5%, of furniture 12.3%, of ed to take. place the fi~st week in the month, a plan which has drugs 5.4%, and of millinery 2.4%. Wholesalers· of dry goods attribute the "disappointing" sales heen in force for several months, but owing to the holiday.season th~-shu.tdown took· place the last week in the month in order to in the final month of last year to warm weather which continued to the end of the month and year, and in part to delay in market·gi;~ th; iniriers a holiday over the Christmas season. · ward movement of corn. Trade conditions were reported generSoft Coal Production ally sound. Finished cotton goods had not been marked up The total of the weekly estimates of soft co.1:l production, in- although mills were reported as buying cotton at the peak price. cluding the allowance for production on the last day of the year, The wholesale grocery reports indicate a very large volume of indicates that the total output in the United States in 1923 was goods consumed, the result of unusually heavy employment at approximately 545,300,000 tons, according to the United States the winter season. Geological Survey. In comparison with r922, this shows an General conditions in hardware lines were described as someincrease of more than 29%. In only three years, 1920, 1918, what quiet, though promising a good business at least during the 1917, has ·production exceeded that of r923. early part of this ye_ar. In the six coal producing states of the Tenth District mining The furniture trade experienced a heavy decline at the yearoperations were maintained throughout the year at a higher end, as reported by both wholesale dealers and manufacturers. percentage of activity than in 1922, which was the year of the Sales during the first half of I 923 were around 30% above those big strike, and on high levels closely approximating those in for the same period in 1922, while during the last half of the year years of peak production. The chief factor affecting production they wete practically the same as during the last half of the during the greater part of the year was the lack of market de- previous year. There have b~en price reductions on some items. mand. Strikes, labor shortages and transportation disability Both manufacturers and wholesalers look for little change in the as causes of loss in mining activity were negligible. The per- prices and a year of good business, though it may not come up to centage of operation to full time capacity for the District was last year's volume. 56.3% in Decem ber, 1923, compared with 68% in December, There was the usual December slump in the wholesale drug 1922. trade and the new year opened with decreased stocks in the Total production of soft coal in the six states of the District hands of retailers. The holiday trade, on the average was up to is expected to exceed that of 1922 by about 20%, although offi- expectations. Cold weather in January interfered with delivercial figures showing the tonnage of coal produced in each of ies but, all things considered, the situation was satisfactory. these states are not available at this time. Prices were steady and fluctuations slight. 8 THE MONTHLY REVIEW CONDITION OF RETAIL TRADE IN CITIES OF THE TENTH FEDERAL RESERVE DISTRICT DURING DECEMBER, 1923 Baud upon Reports from 12 Percentage increase (or decrease) of net sales during December, 1923, over net sales during same month last year·--·•···········································-----Percentage increase (or decrease) of net sales from July 1, 1923, to December 31, 1923, over net sales during same period last year-··-······················-·-····························· Percentage increase (or decrease) of stocks at close of December, 1923, over stocks at close of same month last year.......·-···········-··································---Percentage increase (or decrease) of stocks at close of December, 1923, over stocks at close of Nov., 1923----··········-··············-········ · · - - - - - - Percentage of average stocks (selling price) at close of each month this se:ison (rnmmencing with July 1) to average monthly net sales (selling price) during the same period ...·--·····------······-·············----·-··········-·········-········ Percentage of outstanding orders (cost) at close of December, 1923, to total purchases (cost) during the calendar year, 1922_ _ _ _ _ ·······-······-···························· Percentage of collections during month of December, 1923, on amount of outstanding accounts on November 30, 192_>-------······················································· Percentage of collections for same period last year·-······························-·······-··············· WORKING GARMENTS: Sales reported by manufacturers last year were heavy, firms reporting increases in sales of 12% up to 53% over sales in 1922. Conditions were said to be favorable for a heavy business during I 924, though to some extent depending upon the price of cotton used in the manufacture of garments. The uncertainty of prices is illustrated as follows: June, 1920..........................................- ............... . October, 1919.... .................................•................. January, 1924 ·································- - - - Cotton per lb, Denim per yd. 46c 46c 35c 40c 35c z7c IMPLEMENT TRADE: Dealers' reports indicated sales of implements in 1923 slightly above those in 1922, and the trade somewhat optimistic over prospects for 1924. Trade started out good last year but during the late summer and fall the volume was disappointing. Prices of implements increased last year over 1922 from 20% to 22%, because, it was explained, prices of 1922 were the result of a liquidating or dumping policy and were unjustifiably low. COLLECTIONS: Wholesale merchants reported a decided improvement in collections in December, particularly in the last half of the month. Their reports at the end of the month show large decreases in the amount of outstanding accounts. In retail lines collections were about the same as one year ago. Department store percentage of collections during the month averaged 47.8 %, as compared with 50.8% a year ago. Collections were reported by implement dealers as generally satisfactory, under present conditions. Department Stores. Kansas City (3) Denver (3) Outside (6) District (12) Dec. 4,2 Dec. 2.7 Dec. 2.8 Dec. 3.4 Inc. Inc. 0.9 Dec. I.J Dec. .04 Inc. 13.8 Dec. 3-4 Inc. n.5 Inc. Dec. 25.6 Dec. 15.8 Dec. 17.8 Dec. zo.8 408.5 490.6 575.3 471.9 r.6 5.9 6.6 4.0 50.6 39.4 40.4 52.0 47.8 50.8 0.1 154.8 55·3 8.4 RETAIL: Sales reported by Department stores in cities of the Tenth District during December, were in large volume but as measured by dollars rather than by units they did not quite come up to sales in December, 192.2. The Department store summary shows a decrease for the month of 3.4 % for stores reporting which is about in line with the average for other retail stores from which reports have been received. The Department store reports, combined, show that during the last six months of 1923 their sales were .04% below the combined sales for the last half of 1922. During the first six months of 1923, however, the combined reports showed an increase of 7.1% in sales over those for the first half of 1922. From these figures it is evident that the total volume of business of retail Department stores last year exceeded that of the previous year. Cement Production Preliminary reports on cement industry in the United States for the year, 1923, by the United States Geological Survey, indicate total production of 137,377,000 barrels as compared with 114,790,000 barrels for 1922. Last year was the banner year for the industry. Production at sixteen mills in the Tenth District during the year was 12,251,000 barrels compared with 10,061,000 barrels in 1922, an increase for the year of 2,190,000 barrels. During the month of December operations at the cement mills were carried on with an unusual high percentage of activity. The total production for the month was 867,000 barrels compared with 702,000 barrels in December, 1922, an increase for the last month of 165,000 barrels. THE MONTHLY REVIEW 9 Bu siness Condition s In The United States Production of basic commodities showed fur ther decline in December and wholesale prices receded slightly. Christmas trade was somewhat larger than a year ago. Changes in the banking situation in January reflected chiefly an unusually large return flow of currency after the holiday season. PRODUCTIPN: The index of production in basic industries declined 4 % in December to the low point of the year. The decrease for the month reflected principally a large reduction in consumption of cotton, but also reduced operations in the woolen, petroleum, sugar, and lumber industries. Production of pig iron and anthracite increased. The Federal Reserve Board's index of factory employment decreased 1%, and was 4% lower than in t he spring. The largest decreases were at plants manufacturing food products and railroad equipment. Building contract awards in December were smaller than in November, but almost 25% larger than a year ago. prices of farm products remained unchanged. During the first two weeks of January prices of corn, wheat, pig iron, petroleum, and lumber advanced, while quotations on cotton, sugar, and copper were lower. BANK CREDIT: The volume of credit extended by the Federal Reserve Banks showed the usual sharp increase during the latter part of December in response to holiday requirements for credit and currency and financial settlements falling due on the first of January. With the passing of the seasonal demands there was an unusually rapid return flow of currency to the Reserve Banks, reflected both in an increase of reserves and a decrease of Federal Reserve Note circulation. Member Banks used the currency returned from circulation to reduce their borrowing, with the consequence that the earning assets of the Federal Reserve Banks declined by $360,000,000 during the four weeks following Christmas, or approximately $150,000,000 more than during the corresponding period of 1923. At the middle of January the volume of reserve Bank credit outstanding was below 1,000,000,000 for the first time since early in 1918. TRADE: Railroad shipments continued to decrease during December and were slightly less than in December 1922. Loadings of coal and grain were smaller than a year ago, while loadings of miscellaneous merchandise and livestock were in larger volume. The volume of wholesale trade showed more than the usu al seasonal decrease and was at about the same level as ·a year ago. Sales of meat, hardware, and drugs were larger than in December, 1922, while sales of dry goods and shoes were smaller. Retail trade, though larger in December, 1923, than in any other month on record, did not show as large an increase over November as is usual at the Christmas season. Loan made largely for commercial purposes by Member Banks in principal cities declined between December 12 and January 16 to a point $264,000,000 lower than at the peak in October and to about the level of July 1923. This decrease in loans, which was general throughout the country, was accompanied by a movement of funds to the financial centers and an increase in loans on securities, principally in New York. PRICES: Wholesale prices, according to the· index of the bureau of labor statistics, decreased less than I% during December. The chief reductions occurred in prices of fuel and building materials, while prices of clothing and metals increased, and Easier money conditions in January were reflected in a further slight decline in the rate on prime commercial paper to 4_¾% , compared with 4_¾'% to 5% in December, and in increased activity in the investment markets. JO Statement of Condition Federal Reserve Bank of Kansas City including Branches RESOURCES /lt Close of Business Jan.16,1924 Jan.17,1923 Gold with Federal Reserve agenL ........... ____ J 50,491,855 t, 58,449,100 Gold redemption fund with U.S. Treasury.............. 3,585,285 2,483,133 Gold held exclusively against F. R. notes................ 54,077,140 60,932,233 Gold settlement fund with F. R. Board.................... 38,280,082 33,440,354 Gold and gold certificates held by bank...____ 3,223,368 2,815,863 Total gold reserves.·-···-······--------- 95,580,590 97,188,450 Reserves other than gold......... _ _ _ _ 4,312,,166 3,6o1,473 Total reserves ...... -----······················ 99,892,956 100,789,923 Non-reserve Cash ...., _ _ _ _ _ _ _ _ _ _ _ 3,481,718 4,661,999 Bills discounted: 2 ,953,733 Secured by U. S. Government obligations............ 10,135,034 Other bills discounted ............ ____ 29,517,597 16,095,183 19,048,916 Total bills discounted ..·--····································· 39,652,631 Bills bought in open market ....................................... . I0,000 85,000 U. S. Government securities: 1,831,900 3,497,850 ·Bonds.·-·········----··························-·············· Treasury notes................... _ _ _ __ 8,145,200 23,427,6oo Certificates of indebtedness_ .................................... 1,253,500 16,593,500 Total U.S. Government securities·-··················· 11,230,600 43,5i8,95o Municipal warrants .............................. _ _ _ __ Total earning assets .... _ _ _ _ _ _ __ 62,652,866 5% Redemption fund-F. R. Bank notes ................ 200,000 40,406,TlI Uncollected items ...·-················································-·· 36,30S,664 4,730,561 Bank premises.·----············································ 4,594,543 All other recources.............................................. _ 514,584 942,700 TOTAL RESOURCES .... ---···t,195,682,696 $214,384,770 LIABILITIES F. R. notes in actual circulation ................................$ 63,916,410 F. R. Bank notes in circulation-neL--·················- - - - ~ Deposits: Member Bank-reserve accounL--······················· 73,877,671 Government..... _ _ _ _ _ - - - 3,443,653 Other deposits ...· - - - - · · · ································ 850,671 Total deposits.......................... - - - - 78,171,995 Deferred availability items......·-···---38,922,421 Capital paid in.·-··-··························· - - - - -4,541,650 Surplus.. - - - - - ---9,495,539 All other liabilities................ ________ 634,681 TOTAL LIABILITIES.. _ _ _ _ .t,195,682,696 Ratio of total reserves to deposit and F. R. note liabilities combine.u..._ _ _ _ _ _ _ _ __ Contingent liability on bills purchased for foreign correspondent..,____________ $746,935 Total clearings for week. __.................. $163,215,167 Total number. of items handled.......... 1,093,136 . $67,215,385 2,203,689 80,968,205 1,235,569 5,596,987 87,800,761 42,653,721 4,619,600 9,488,2 99 4°3,3 15 t,214,384,770 65.0% $457,995 f180,123,473 1,207,380 THE MONTHLY. REVIEW II WHOLESALE PRICE!» PRODUCTION IN BASIC INDUSTRIES Pf A cun 300 200 50 1----+----+----+----+---t----, 50 o.___ 19t9 J.,_,_ _. . , __ __._._ _-6-_ _...,__ _ _ 1920 1921 1922 1123 pJ V' ~ '~ 200 . - L---. 100 100 o 192«. 0 0 1920 1919 1921 · 1922 1923 COMBINATION OF 22 INDIVIDUAL SERIES CORRECTED FOR SEASONAL VARIATION INDEX NUMBERS OF WHOLESALE PRICES U. S. BUREAU OF- LABOR STATISTICS (1919-100) (1913-100 BASE ADOPTED BY BUREAU) 81WONS OF OOLUI\S 81U.!Ott• 0,. DOU.ARI 16 1919 1920 1921 1322 1923 . MEMBER BANK CRE:DIT R£SERVE BANK CREDIT MILLIOHS Of OOLLAIIS 4000 192't TWELVE FEDERAL RESERVE BANKS OI---..L--- -L- - - L - - - - ' - - - ~ - - ~ o 1919 1920 t921 1922 1923 t92'1 800 MEMBER BANKS IN LEADING CITIES
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