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THE MONTHLY REVIEW Of Agricultural, Industrial, Trade and Financial Conditions in the Tenth Federal Reserve District FEDERAL RESERVE BANK OF · KANSAS CI TY M. L. McCLURE, Chairman and Federal Reserve Agent A. M. McADAMS. Assistant Federal Reserve Agent and Secretary P, W. MORGAN, Director of Research Vol. I5 KANSAS CITY, Mo., NDUSTRIAL OPERATIO S in the Tenth District slackened in December, after continuing at a high rate of activity through the summer and fall of 1929, and the output for the month was smaller than that for December 1928. Retail trade, as reflected by sales of department stores, rose in December to the highest monthly volume of the year, but failed to reach the high peak attained in the final month of 1928. Wholesale distribution, following the usual custom, declined in December but the sales volume was smaller than a year earlier. Preliminary reports covering the first three weeks of 1930 reflected no marked change in the general situation from the closing weeks of 1929, save that the usual January quiet was accentuated by a long period of severely cold weather. A heavy blanket of snow over practically the entire area interfered with production and distribution and effectually checked out-of-door work. I BUSINESS IN THE TENTH FEDERAL RESERVE DISTRICT Percentage of Increase, or Decrease (-), for December 1929 over November 1929 and December 1928, and for the year 1929 over the year 1928. December 1929 Year 1929 Over Over General Nov. 1929 Dec. 1928 Year 1928 Bank debits, 30 cities·-··································· - 5.3 - o.8 10.2 Business Failures, number............................ -23.2 - 6.8 18.3 Liabilities,________ -27.6 -22.2 37.1 Building Permits, 20 cities, Value................ -38.5 -42.0 1.4 Building Contracts, Value, DistricL-......... -37.5 -48.7 - 8.8 Retail sales, department stores.................... 44.8 - 2.2 2.5 Wholesale sales, 5 lines combined................ -25.3 -13.4 -- o.6 Lumber........ -------··················· -33.6 -17.1 - 1.1 Grain Receipts, 5 markets -0.7 Wheat.-················----······················ Corn_ .............................................................. _ 142.3 -20.9 11.7 -22.6 1 Oats ....... -_ -_ -_ -_ -_ -_ 7.5 Rye _ _..._ __ - - - 9.9 2 4·9 104.0 174.1 Barley_ _ _ __ 38.1 ·- 9.1 3 1 •7 Kafir _ _ _ _ _ _ _ _ _ _ _ __ 12.8 80.0 -II.3 Livestock Receipts, 6 markets -2.'7 1 5·4 Cattle ................ - - - - - - -23.8 Calves .......... _.......................... _ _ __ -47.1 26.3 3.4 0.2 -10.9 20.9 Hogs ......- - - - Sheep ............................................................... -18.7 - 1.6 0.4 -3 2 .3 3.7 Horses and Mules·-········································· - 2 9.7 Production -6.4 3.4 Flour·-······························································· - 2.2 1.6 Crude Petroleum .......... - - - - - 4.2 - 7.8 Soft Coal......- - 2.3 - 2.5 - 5.7 21.1 2.6 -38.3 Zinc Ore (Shipped)·-- -······················ Lead Ore (Shipped) ........... _ _ _ __ 14.8 - 2 5.5 18.2 Cement·-···········----························ -18.2 Meat Packing 0 8 Cattle.. - - - - - · 9·9 °·5 IO.O 0,1 Calves.-- · · · · · - - - - - - - - - - -21.5 _ 17.8 _ 2.6 Hogs ..................... _ _ _ _ _ _ __ 24 .7 33.4 3.8 0.9 Sheep.......·-·-·-··················· · · · · - - - - - FEBRUARY T, 1930 No. 2 F INAL returns for 1929 reveal that the general volume of business in the Tenth District was greater than that reported for 1928, despite the more than seasonal decline in the closing month. The statistical records show production in the foods, petroleum and metal industries, and in leading manufacturing lines, exceeded that for 1928, and many new high records were established. Building reports reflected a decline in residential construction, but a small increase over 1928 in other types of construction. The composite farm production for 1929 was lower than that for 1928, due mainly to smaller yields of two of the major crops, corn and wheat. On the whole, this year's crops were well-balanced and more diversified than in former years, and the higher level of prices prevailing through the marketing season gave production a value but slightly lower than that for 1928. Movements of livestock from farms and ranges to primary markets in this District were in larger numbers than in the preceding year for all classes of animals except cattle, which showed a small decrease. · Trade reports reflected an unusually large volume of goods and merchandise going into consumption. Aggregate dollar sales of reporting department stores was 2.5 percent above the figure for 1928, while the combined total sales of wholesale firms engaged in five lines of merchandising fell six-tenths of I percent below that for the preceding year. Banking and Credit The high level of business activity in the Tenth District iri 1929 was accompanied by an active demand for bank credit which became more insistent with the advance through the summer and fall months. Loans and discounts of commercial banks, and rediscounts of the Federal Reserve Bank of Kansas City and its branches, averaged higher than in the preceding year and new peak records for recent years were established. Deposits also were at a high level, and funds were ample for all legitimate requirements. Rates during the summer and fall were slightly higher than in 1928, though easing somewhat in December with the seasonal slackening in the demand for bank credit •. WITH REPORTING MEMBER BANKS: The combined weekly statements of fifty-eight reporting member banks in cities are indicative of the volume of business of the banks in this District in the past twelve months. These reporting memher banks began the year with $444,338,000 of loans and dis)' h counts. During the early months there was a s tg t tendency to increase, but at the turn of the half-year This Copy Released For Publication In Morning Newspapers January 29 2 THE MONTHLY REVIEW loans and discounts turned sharply upward and continued in record volume through the remaining months, with the peak total of $480,545,000 on August 7, and the year closing with $458,807,000 or $14,469,000 above the total reported fiftytwo weeks earlier. Investments, which in the last half of 191,8 were the highest of record, declined during 1929 and on December 31 the total of $217,568,000 was $20,574,000 below the amount reported at the beginning of the year. Total deposits of $690,874,000 on January 2, 1929, ran considerably higher than in 1928 to the middle of October, with a record total of $708,446,000 on August 14. During the last ten weeks of the year, total deposits were less than in the like period in 1928, and at the year-end stood at $670,345,000, or $20,529,000 less than fifty-two weeks earlier. AT THE FEDERAL RESERVE BANK: Although the volume of loans and discounts of the Federal Reserve Bank of Kansas City was not as great in 1929 as during the three years following the World War, they did reach a higher point in the last year than at any time since January 1922. At the beginning of the year the total stood at $40,198,749 and for the first three months there was little fluctuation. Early in April there began a gradual increase and on ·June 1 the total reached $60,523,283. After this there was a sharp decline until August 12, when the year's low point of $26,340,505 was reached. Immediately thereafter loans again began to climb and continued the upward movement until on November 30 the year's peak of $64,227,389.99 was attained. A rapid decline through December brought the total on the last day of the year to $29,649,108.21, a drop of approximately $35,000,000 during the month. However, the amount shown at the end of the year is not a satisfactory comparative figure, for the reason that there was a decrease of approximately $12,000,000 in the last two days of the year, and an increase of approximately $10,000,000 on January 2, 1930. The large volume of loans to member banks in the latter part of the year was accompanied by a considerable volume of acceptances, resulting in the largest total of loans and acceptances since January, 1922. Early in November this bank was relieved from further participation in purchases of acceptances, having previously discontinued participation in open market purchases of government securities and sold all of its holdings of such securities during M ay and June. Earning assets of this Bank at the beginning of the year totaled $53,476,401. There was not much fluctuation until early in the spring, when there was a gradual increase which carried total earning assets to approximately $72,000,000 at the end of May. This was followed by decreases through June to the middle of August, after which there was a gradual increase to approximately $84,000,000 at the end of November, and a rapid decrease during December to $42,907,274 on the last date of the year. Member bank reserve deposits ranged between $83,000,000 and $99,000,000 with an average for the year of around $90,000,000. The ratio of total reserves to deposits and Federal Reserve Note liability, combined, fluctuated between 53 percent and 83 percent and at the end of the year stood at 77.5 percent. The rediscount rate of the Federal Reserve Bank of Kansas City, which had remained constant at 4½ percent for nine PRINCIPAL RESOURCE AND LIABILITY ITEMS Fifty-eight Reporting Member Banks. Dec. 31, 1929 *Jan. 2, 1929 Loans and Investments-total......................... f,676,375,000 $682,480,000 Loans and Discounts- total.............................. 458,807,000 444,338,000 Secured by stocks & bonds............................ u5,087,ooo 123,629,000 All other loans & discounts.__ ....................... 333,720,000 320,709,000 217,568,000 238,142,000 Investments- -totaL __ ·········---U. S. Securities _ __ _ _ _ _ n5,481,ooo 93,355,000 Other bonds, stocks and securities............... . 124,213,000 I'.l'.2,661,000 Reserve with F. R. Banks... _ _ __ 52,267,000 60,717,000 Net demand deposits ......................................... . 501,817,000 511,600,000 Time deposits ..................................................... . I 67,734,000 176,955,000 Government deposits .......................................... 2,319,000 794,ooo *Revised Federal Reserve Bank of Kansas City and Branches Dec. 31, 1929 Dec. 31, 1928 Gold Reserves .................................................. f,131,718,861.98 f,118,664,085.05 Reserves other than Gold............................. 6,172,445.00 5,766,058.00 Total Cash Reserves...................................... 137,891,306.98 I'.24,430,143.04 Bills discounted·--·······························--.......... 29,649,108.2 I 31,142,752.47 Bills purchased........................... .................... 8,195,165.54 96,016.74 U.S. Securities..... _ _ _ _ _ _ 3,063,000.00 10,513,300.00 Federal Intermediate Credit Bank Debentures ................................................. . 1,500,000.00 Total Bills and Securities.............................. 40,907,273.75 43,251,069.21 Total resources........................· - - - - · · 226,461,976.02 213,276,787.60 Federal Reserve Notes in Circulation.......... 89,434,280.00 70,663,130.00 Total deposits.................................................. 123,092,977.39 I:28,779,265.98 months, was on May 6 raised to 5 percent, but again restored to 4½ percent on December 20. This rate applies to all classes of maturities of rediscounts and member bank notes. Savings in Banks Deposits to savings accounts in reporting banks in Tenth District cities made further declines during December while the number of savings depositors increased. The reports of fifty-one banks show they had $II 5,310,510 of savings deposits on January 2, 1930, as compared with $II6,468,469 on December 1, and $124,001,499 on January 2, 1929. The number of savings accounts reported by forty-nine banks was 399,754 at the beginning of the year, this figure showing increases of 3,459 accounts for the month and 17,160 for the year. Payments by Check Returns to the Federal Reserve Bank of Kansas City show the banks in thirty cities of the Tenth District debited amounts aggregating $19,663,062,000 to accounts of individuals, firms and corporations in the fifty-two weeks ended December 3 t, · 1929. This was the highest yearly total of debits recorded for the cities reporting. It exceeded by $1,827,170,000, or 10.2 percent, the total of $17,835,892_,ooo debited in the fifty-two weeks of the preceding year. The returns in detail show debits took an upturn in the first week of the year when $430,431,000 was reported. This was the first time a weekly total exceeded 400 million dollars, although later in the year there were thirteen other weeks in which the amounts reported passed that mark. Of the thirty cities from which reports were received twenty-seven showed increases in debits over the preceding year, while three cities showed small fractional decreases. Debits for the four weeks ending December 31 was smaller by 5.3 percent than for the preceding four weeks and eighttenths of 1 percent smaller than for the like period a year ago. THE MONTHLY REVIEW BANK DEBITS I THIRTY TE TH DISTRICT CITIES Two Dec. 31, 1929 1, 161,814,000 80,894,000 277,672,000 97,502,000 88,938,000 200,997,000 2,425,413,000 215,498,000 53,279,000 46,408,000 43,150,000 304,867,ooo 160,638,000 184,028,000 244,1u,ooo 5,672,220,000 63,718,000 428,588,000 I 52,581,000 1,56o,444,ooo 96,654,000 2,757,520,000 40,837,000 74,266,000 2!!.i,004,000 169,771,000 700,725,000 247,910,000 1,983,703,000 838,912,000 FIFTY Albuquerque, N. M ..........·-········· Atchison, Kans................. ... ... ... Bartlesville, Okla.......................... Casper, Wyo.... -......................... Cheyenne, Wyo._____ Colorado Springs, Colo................ Denver, Colo_···········---Enid, Okla...................................... Fremont, Nebr.-........................... Grand Junction, Colo.................. Guthrie, Okla................................ Hutchinson, Kans·--····················· Independence, Kans·-··················· Joplin, Mo_____ Kansas City, Kan,.,_____ Kansas City, Mo.......................... Lawrence, Kans.. .......................... Lincoln, Nebr_·········- ·······-·········· Muskogee, Okla ........... -............... Oklahoma City, Okla._···-·•·····.... Okmulgee, Okla............................ Omaha, Nebr.______ _ Parsons, Kans................................ Pittsburg, Kans...... ...................... Pueblo, Colo-................................ Salina, Kans·-··----St. Joseph, Mo.. ............................ Topeka, Kans ............ - - - Tulsa, Okla.......... _ _ _ _ _ Wichita, Kans·-······················-···· Total, 30 Cities, 52 Wks .............. $19,663,o62,ooo Total, 30 Cities last 4 Wks._....... 1,435,953,000 Farm Crops and Their Value Percent Change 5.1 6.1 3 1 ·3 1.5 3.7 3.1 WEEKS ENDING f, Jan. 2, 1929 I 53,970,000 76,213,000 211,475,000 96,071,000 85,805,000 200,754,000 2,177,954,000 196,824,000 52,295,000 42,786,000 41,856,000 241,126,000 I 56,488,000 169,964,000 246,435,000 5,054,722,000 63,567,000 422,328,000 145,277,000 1,356,645,000 95,728,000 2,592,657,000 41,026,000 73,298,000 259,483,000 l 56,035,000 712,019,000 247,4 13,000 1,650,630,000 815,048,000 $17,835,892,000 1,447,877,000 11.4 -0.9 12.2 0.'2 1.5 5.0 15.0 1.0 6.4 -0.5 1.3 9.5 8.8 -1.6 0.2· 20.2 2.9 10.2 -o.8 Business Failures The record of business insolvencies in the Tenth District for December shows the smallest monthly total of failures since August and the smallest monthly total of liabilities since June, with both failures and liabilities considerably below those for December 1928. The record of failures for the full year 1929 shows the number and amount of liabilities exceeded those for the preceding year. The reports of R. G. Dun & Company on failures in this District are here shown for December and the twelve months of both years: NUMBER. December·-······································· Year.................................................. 1929 96 1,426 LlARlLI1.'IES 1929 1,578,095 21,915,767 3 1928 $ 2,028,396 15,982,825 Life Insurance Sales of new ordinary life insurance in seven states in 1929 totaled $716,910,000, an increase of '$31,672,000 over the $685,238,000 reported for 1928, according to the Life Insurance Sales Reserch Bureau. All of the states reported increases in sales for the year, with the higher percentages of increase in New Mexico, 17 percent, and Wyoming, 13 percent. The amount of new ordinary paid-for business, (excluding group insurance), was: Colorado $82,535,000, Kansas $99,411,000, Missouri $298,636,000, ebraska $88,909,000, ew Mexico, $14,529,000, Oklahoma $121,224,000, Wyoming $11,666,000. The final estimates of the Government and State Departments of Agriculture indicated 1929 was a much better crop year than had been indicated at any time during the growing and harvesting season, although on the whole the year's outturn of crops was smaller than in 1928. Due to the higher level of prices, however, agricultural income was generally more satisfactory, and the aggregate value of the year's harvest of all crops closely approximated that for 1928. A summary of this District's production of crops, and their value computed on the December price reported by the Department of Agriculture, is here shown for 1929 and 1928: 1929 Corn, bus ......................445,415,ooo Winter Wheat, bus.-... 255,306,000 Spring Wheat, bus_ .... 12,187,000 Oats, bus ...................... 152,447,000 Barley, bus .................. 50,038,000 Grain Sorghums, bus .. 47,432,000 Potatoes, bus·-·······•····· 31,937,000 Sugar Beets, tons........ 4,577,000 Broom Corn, tons·--··· 41,000 Tame Hay, tons ......- .. 12,348,000 Wild Hay, tons............ 5,056,000 Cotton, bales, (and seed).......................... 1,211,000 Miscellaneous Crops.... 1928 520,235,000 320,240,000 14,716,000 158,774,000 47,831,000 64,713,000 40,120,000 3,939,000 42,000 12,381,000 4,989,000 1,147,000 Est. Value all Crops.-. 1929 1928 $ 347,424,000 t, 390,176,000 271,901,000 12,382,000 66,314,000 27,521,000 33,677,000 41,965,000 34,4 19,000 5,002,000 I 51,015,000 41,004,000 3 29,847,000 13,436,000 64,938,000 26,403,000 40,122,000 21,625,000 28,oo6,ooo 4,376,000 151,915,000 36,669,000 108,686,000 285,689,000 II8,370,ooo 220,517,000 t,1,426,999,000 $1,446,400,000 Under the head Miscellaneous, there is included about forty other crops which represent a very large proportion of the farm income in this District. Among these are rye, buckwheat, flaxseed, sweet potatoes, beans, onions, tobacco, the varouis classes of hay seeds, sugar beet tops and pulp, all fruits and nuts. Yields of many of these crops and also average sales prices were higher in 1929 than in 1928. According to the reports thus far announced, farm crops harvested in Colorado, Nebraska and Wyoming in 1929 had a greater value than for 1928, while in Missouri and Oklahoma, crop values declined in comparison with totals reported a year ago. Final figures for Kansas and ew Mexico have not been announced. Private estimates have indicated the year's value for Kansas would be lower than the $385,536,000 officially reported for 1928, crops, exclusive of livestock, due to smaller production of wheat and corn in that state. On the other hand, New Mexico has reported larger production of practically all crops than in the preceding year, and private estimates say the aggregate value should be higher than the $27,000,000 reported for 1928. Values by states thus far reported: 1929 Colorado ·-······························· f,143,000,000 Missou ..·_ _ _ _ __ Nebraska .. _ _ _ _ __ Oklahoma ...... - - - - - Wyoming .. _ _ _ __ 309,000,000 347,000,000 276,000,000 38,000,000 1928 Jn8,ooo,ooo 325,000,000 327,000,000 304,000,000 32,000,000 Inc. or Dec. t,2.5,000,000 - 16,000,000 20,000,000 28,000,000 6,000,000 Grain Movement The five leading markets in the Tenth District received 329,027,930 bushels of grain during the calendar year 1929, a decrease of 136,060 bushels or four-one hundredths of I percent from the 329,163,990 bushels received in 1928, the record year for grain marketing in the District. A summary of the returns for the year just ended shows receipts of wheat were 7.1 percent larger than in the preceding year and the largest recorded for these markets in ten years. Receipts of corn fell 20.9 percent THE 4 MONTHLY RECEIPTS OF GRAIN AT TENTH DISTRICT MARKETS WHEAT Co RN OATS RYE BARLEY KAFIR Bushels Bushels Bushels Bushels Buihels Bushels Hutchinson 4,6,291,500 2,886,250 51,000 4,800 362,500 2,884,700 Kansas City 94,917,680 31,514,700 5,156,000 204,000 2,676,800 5,173,300 ·omaha.. ___ _ 43,185,600 18,761,400 8,290,000 1,904,000 1,779,200 St. Joseph 16,152,800 10,323,000 970,000 6,000 210,000 25,500 Wichita__.._ 31,622,100 2,850,900 234,000 3,900 408,200 178,100 ---- ---- ---- --- --- - - - Year 1929.__ 232,169,680 66,336,250 14,701,000 2,122,700 5,436,700 8,261,600 Year 1928·--· 216,641,540 83,844,200 13,672,000 1,699,500 5,983,350 7,323,400 Year 1927·--· 175,945,400 59,964,350 13,030,500 2,009,900 2,852,250 6,573,6oo Year 19'l6 -- 183,387,750 50,535,500 14,051,900 1,7n,200 979,900 4,742,000 Year 1925·--· n6,094,ooo 47,188,050 33,964,100 Dec. 1929·-··· 12,879,630 8,378,000 987,500 Nov. 1929 6,938,990 3,457,500 1,232,500 Dec. 1928._._ 12,976.,.220 7,499,900 1,276,500 980,200 1,453,100 6,229,200 278,200 430,350 954,500 101,500 3n,700 530,300 136,400 326,750 1,075,900 below 1928 but with this exception were the largest in ten years; Th~ year's receipts of oats increased 7.5 percent, rye increased 24.9 percent, kafir increased 12.8 percent, while barley decreased 9.1 percent, over the preceding year. The favorable prices prevailing during December at the five markets resulted in heavier receipts for the month of all classes of grain, except oats, than in the preceding month. In comparison with December 1928, the returns for the month show receipts of wheat, oats and kafir were lighter while receipts of corn, rye and barley were heavier. REVIEW six centers, including direct shipments to packers, although the month's total fell 10.9 percent below that for December of 1928. Market runs of cattle and calves declined seasonally during the month but were larger than in December of the preceding year. • Marketings of sheep also declined with the advent of winter weather and were smaller in December than for the preceding month or the corresponding month in 1928. FEEDING OPERATIONS: The annual reports of the stock yards companies at Karisas City, Omaha, St. Joseph and Deriver indicate the year's shipments of cattle to the country for stock and feeding purposes were smaller by 5.7 percent than in . 1928, and the smallest yearly total of countryward shipments on nine years' records. Shipments of stock and feeding calves for the year were in greater numbers than in the preceding year, by 5.5 percent, and were larger than in other previous years of record. The 1929 shipments of stock and feeding sheep, exceeding those for 1928 by 5.6 percent, were the largest of record for ten years. The December countryward movement of cattle and calves from four markets to the country was small in comparison with the year's peak movement in October and November, although shipments for the month were larger than in the same month in 1928. The outgo of sheep from the four markets was the smallest for the month of December since 1923. Livestock During the year 1929 the livestock industry shipped to the six leading markets in the Tenth District 25,426,051 head of livestock having a sales value of $743,960,903. The number of animals received was smaller by only 42,790 head, or a small fractional part of 1 percent, than the receipts for 1928.In point of values, however, the year's total was smaller by $78,005,426, or 9.5 percent, than the aggregate for the preceding year. The receipts of the various classes of livestock, and their values, are here shown for the two years: 1929 Catt! 4,828,791 814,708 Calve io,779,320 Hog 8,875,189 Sheep--·· Horses-Mules ........ 128,043 1928 4,961,896 787,972 10,759,756 8,835,717 123,500 VALUE 192 9 1928 $394,959,345 $487,387,105 22,588,610 2:2,1T2,180 230,228,876 208,133,210 84,66o,202 92,445,834 11,828,000 n,523,870 Tota.___ _ _ _ _ 25,426,051 :25,468,841 $743,960,903 $821,966,329 RECEIPTS The reports for December show a seasonal increase over November in the number of hogs received at the public yards at the Cattle Kansiu City..............- 1,835,792 1,444,210 Omah St. Joseph .................... 5oo,39o Denver 555,588 Oklahoma CitY·-·······- 253,012 Wichita ___ 239,799 Meat Packing The reports show operations of meat packing plants at the six market centers of the Tenth. District during 1929 were on about the same level as in 1928. Purchases of meat animals by packers during the year indicated the number of cattle killed and dressed exceeded the total for 1928 by one-half of I percent, while the number of calves killed and dressed fell below . the previous year's total by one-tenth of 1 percent. The slaughter of sheep increased by nine-tenths of 1 percent to the largest yearly total on eleven years records. In the hog department~ the year's slaughter fell 2.6 percent below that for 1928, although with that exception it was the largest yearly slaughter since 1924. Reports for December show larger numbers of cattle, calves and sheep were killed and dressed than in the final month of 192ll. The number of hogs slaughtered during the month showed an increase of 24.7 percent over November, but was smaller by 17.8 percent than for December 1928. MOVEMENT OF LIVESTOCK IN THE TENTH FEDERAL RESERVE DISTRICT RECEIPTS PACKERS' PURCHASES STOCKERS ANO FEEDERS Calves Sl)eep Hogs Sheep Hogs Cattle Calves Hogs Sheep Calves Cattle 260,907 840,289 206,510 • 3,133,472 1,290,177 341,959 • 4,155,445 1,752,882 652,197 74,852 104,097 102,223 29,261 2,277,700 1,696,965 3,165,793 3,030,619 975,666 855,996 58,45 2 371,447 43,034 1,626,641 1,635,607 381,060 16,516 24,156 89,274 321,765 69,166 1,199,514 1,166,824 92,382 2 2 2 18,300 1,191,550 418,063 68,479 131,489 538,524 , 9°,395 239,605 . 306,930 37,743 7,33° 460,280 2 25,262 388,666 121,552 163,372 97, 79 18,303 91,221 78,688 23,209 140,424 832,637 790,613 84,997 814,708 10,779,320 8,875,189 Year 1929.·-·········--··· 4,828,791 Year 1928 .......·--····-- 4,961,896 787,972 10,759,756 8,835,717 827,830 8,264,750 7,640,649 Year· 1927.. 5,272,676 884,136 7,967,737 7,8o9,370 Year 1926_··--············ 5,425,272 Year 1925...................• 5,771,141 1,037,637 9,087,803 7,518,485 62,060 922,027 475,080 December 1929·-····-··· 375,276 n7,300 762,544 584,073 November 1929.·-····- 49 2, 257 1,034,252 l 482,814 49,129 December 1928·-····-·-· 32 5, 2 53 *Includes 1,679,138 hogs shipped direct to packers· yards. 1,422,956 172,145 1,509,054 163,130 1,426,291 u3,769 1,478,542 80,584 1,626,382 78,848 98,3 17 16,552 215,972 41,106 u,560 85,238 175,814 198,170 174,356 169,617 145,953 9,448 10,9II 13,085 2,809,183 2,66o,741 2,647,521 2,286,642 2,244,965 85,472. 309,528 IIo,340 2,39 1,599 2,379,944 2,814,718 2,993,768 3,098,640 194,443 196,033 176,876 481,946 482,158 578,299 646,521 760,690 36,200 46,105 3 2,9 19 8,208,028 8,424,051 6,551, 295 5,964,080 6,645,2.47 718,131 576,042 873,464 4,496,871 4,457,9 12 3,914,142 4,086,929 3,635,659 335,247 251,254 322,998 THE MoNTHLY Mills in the Tenth District were operated in 1929 at an average of 69.8 percent of their capacity, as compared with an average of 67.6 percent of capacity in 1928. Production of flour for the year not only exceeded that for the preceding year by 3.4 percent but was the largest for any year in the history of Southwestern milling. A survey of milling activity reveals that the output of flour for each of the first eight months of the calendar year 1929 was larger than for each corresponding month in 1928. The August output of 2,456,600 barrels was the largest for a single month. Although the output continued heavy during the last four months of the year, it was smaller than in the like period in 1928, the December total indicating a decrease of 6.4 percent as compared with that for the previous December. The record of flour production for December and the year 1929 and 1928, compiled from the weekly reports to the Northwestern Miller: Dec. 19z9 Nov. 1929 Dec. 19z8 Year 1929 Year 1928 Barrels Barrels Barrels Barrels Barrels Atchison.................... 110,636 l'l4,z47 122,355 1,488,473 1,4o7,947 Kansas CitY·- -········· 636,215 646,1 75 619,746 7,955,368 7,599,59 1 Omaha ...................... 103,958 100,205 1,151,663 1,2sz,u4 97,349 Salina ........................ 158,836 153,493 2,030,191 169,587 1,941,z66 St. Joseph ................ 134,833 121,812 161,1 78 1 ,537,2 65 1,580,746 160,770 1,880,733 138,974 1,828,742 Wichita.~-················· 146,124 Outside...................... 810,734 840,158 91 7,z71 10,816,178 10,376,585 2,238,771 5 preceding month or a year ago. The record for the month and twelve months, with comparisons, follows: Flour Milling Total.. ...................... 2,094,727 2,141,158 REvrnw 26,859,871 Barrels Daily Dry Gas Rigs-Wells Wells Completed New Production Wells Wells Drilling 283 127,3z7 89 39 Oklahoma·- -····················· 995 0 82 10,042 Kansas ............ 37 3°7 0 8 154 Wyoming.. 7z3 3 6 0 Colorado 8 13'2 99 0 IIO New Mexico ........ ............ 8 7 December 1929................ November 1929·-········-··· December 1928................ Year 1929·--····················· Year 1928.... .................... 389 414 355 5,023 5,245 138,224 122,076 85,541 1,397,204 1,160,084 142 153 127 1,874 1,862 40 52 33 1,665 1,704 1,713 447 627 New development work declined at the closing month of the year and the number of wells drilling at the opening of 1930 was smaller by 2.8 percent than one year earlier. Reports on petroleum refinery operations in Oklahoma and Kansas at the opening of the new year, as compared with a month earlier and a year earlier, follow: Plants Operating Janury 1, 1930 ...................................................• December 1, 1929... _ _ _ _ __ J anuary I, 1929 .................................................. 56 55 58 Bbls. Daily runs Crude oil to stills 287,6oo 291,050 284,300 25,986,99 1 Bituminous Coal Petroleum The output of crude petroleum in the five producing states of the Tenth District in 1929 totaled 319,670,000 barrels, or 31.7 percent of the United States output of 1,006,547,000 barrels for the year. This District's total for the year was 5,001,000 barrels or 1.6 percent larger than that for 1928, but 23,480,000 barrels or 6.8 percent smaller than for 1927, which was the high record of production. December production of crude petroleum in this District was at a daily average of 824,000 barrels as compared with daily averages of 817,200 barrels for November and 893,500 barrels for December 1928. Due to efforts to stabilize production the November and December daily averages were the lowest since last February. Gross production for December and the year: *Dec 1929 Dec. 192 8 •year 1929 Year 1928 Barrels Barrels Barrels Barrels Oklahom..._____ _ _ _ _ 20,o64,ooo 22,772,000 253,643,000 251,241,000 Kansas.......... 3,459,000 2,979,000 42,857,000 38,332,000 Wyoming.............................. 1,605,000 1,633,000 19,184,000 21,415,000 Colorado 165,000 208,000 2,297,000 2,722,000 New Mexico........................ 248,000 107,000 1,689,000 959,000 TotaL .......· - - - - · · ··· 25,541,000 27,699,000 319,670,000 314,669,000 *December 1929 estimated. · A survey of field operations covering the past twelve months shows a decrease from 1928 of 4.2 percent in the number of new wells completed, but an increase of 20.4 percent in daily new production from new wells completed. While the December reports reflected a seasonal decline from November, the number of wells completed during the month was the largest for the final month of a year since 1926. The number of barrels daily new production was larger for December than in either the The total production of soft coal in the six producing states of the Tenth District in 1929 exceeded that for 1928 by 2.3 percent, but with that exception it was the smallest yearly output since 1922. During the summer and fall months the production of soft coal ran considerably ahead of the corresponding months of the preceding year. In December there was a decline in productive activity, and the output for the month was smaller than in either the preceding month or the final month of 1928. SOFT COAL PRODUCTION IN THE TENTH DISTRICT • Dec. 1929 Dec. 1928 *Year 1929 Year 1928 Tons Tons Tons Tons Colorado.__..................................... 1,074,000 1,126,000 9,865,000 9,877,000 Kansas ............................................ 255,000 266,000 2,681,000 2,220,000 Missouri _ _ _ __ 389,000 343,ooo 3,569,000 3,400,000 237,000 2,675,000 2,905,000 New Mexico·--- ····························· 238,000 355,000 3,240,000 3,050,000 Oklahoma. __ ··································· 342,000 Wyoming........................................ 583,000 627,000 6,557,ooo 6,486,000 Tota.___ _ __ _ _ _ ········· 2,881,000 2,954,000 28,587,000 27,938,000 *Estimated. Cement Production and shipments of Portland cement at mills in the Tenth District in December and the year 1929 was larger than in the corresponding month and twelve months of 1928. The number of barrels produced and shipped from these mills follow: PRODUCTION December 1929 ................................................... . December 1928 .................................................... Year I 929 ........................................................... . Year 1928 ........................................................... . 1,060,000 897,000 14,954,000 13,675,000 SHIPMENTS 610,000 575,000 15,016,000 1 3,795,000 Stocks of finished cement on hand at mills at the close of December totaled 1,912,000 barrels as compared with 1,462,000 barrels at the close of November, and 1,870,000 barrels at the close of December 1928. 6 THE MONTHLY REVIEW Metal Mining The tonnage and value of zinc and lead ore produced and shipped in the Tristate District of Missouri, Kansas and Oklahoma in 1929 exceeded the figures for 1928 but fell below those for 1927 and 1926. Stimulated by a strong market demand and an increase in the price, sales and shipments of zinc ore continued through the summer and early fall at a higher level than in the preceding year. The demand for zinc ore weakened at the opening of November, prices declined, production was curtailec\ and shipments during the remaining weeks were the lowest of the year. The demand for lead ore held fairly steady through the year and, except for a slight decline in the last eight weeks, shipments were larger than in 1928. PRODUCTION AND VALUE OF ZINC AND LEAD Four Weeks Ending Fifty-two Weeks Ending Zrnc ORE Dec. 28, 1929 Dec. 28, 1929 Tons Value Tons Value Oklahoma ...................................... 28,108 f,1,037,493 . 391,076 f,16,585,764 Kansas.. .......................................... I 0,9 54 408, I 30 209,790 8,901,615 Missouri.......................................... 602 22,789 I I ,977 509,608 Total I 929 ...................................... 39,664 Total 1928 ..................................... 64,330 LEAD ORE Oklahoma._..................................... 5,234 Kansas........ .................................... I ,06 I Missouri.......................................... 74 Total 1929...................................... Total 1928...................................... 6,369 8,552 '/,1,468,412 2,573,200 '/,25,996,987 23,292,277 79,575 5,55° 63,886 34,639 1,402 $ 5.670,723 3,103,885 123,060 f, 477,675 718,457 99,927 98,683 1> 8,897,668 1, 392,550 8,058,225 The average price received for zinc ore for the entire year was '$42.99 a ton as compared with $39 a ton for 1928. The average price paid for lead ore in 1929 was $87.50 a ton as compared with '$81.21 a ton for 1928. In the opening week of 1930 zinc ore sold at an average of $35 a ton, and lead ore at $7 5 a ton, which compares wih $40 a ton for zinc and $8 5 a ton for lead in the opening week of 1929. The Government's estimate on the output of principal metals from Colorado mines in 1929 indicated larger production of silver and smaller production of gold, copper, lead and zinc than in 1928. Due to the lower prices of silver-it was down to 49 cents an ounce at one time during the year-the aggregate Albuquerque, N. M ...................... Casper, Wyo.................................. Cheyenne, Wyo ............................ Colorado Springs, Colo ............... Denver, Colo·--····························· Hutchinson, Kans ........................ Joplin, Mo·--······················•·········· Kansas City, Kans·--········•········· · Kansas City, Mo .......................... Lincoln, Nebr................................ Muskogee, Okla .. .......................... Oklahoma City, Okla .................. Omaha, Nebr................................ Pueblo, Colo .................................. ~:.lt::e!~,n~~------.-:.-.-.-_-:.-.-::.-::::.-::.-.-.-:_-_·:: Shawnee, Okla .............................. Topeka, Kans ................................ Tulsa, Okla .................................... Wichita, Kans·--·························· · Total 20 Cities .............................. PERMITS 1928 1929 51 39 I 4 IO 30 33 JI 223 25 13 231 25 7 39 36 121 158 28 36 5 13 243 244 25 34 8 12 19 27 138 37 50 8 8 36 n5 44 200 109 1,179 1,337 value of that metal produced was less than in 1928, while on the other hand the more favorable price of copper gave the year's output a greater value than the larger output of 1928. The production and value of five metals in Colorado, in terms of recovere. and recoverable metal, is here shown from the advance figures o C. W. Henderson, United States Bureau of Mines, Department of Commerce: PRODUCTION 1929 1928 Gold ...... - - - Silver, oz. fine.................. 4,323,387 Copper, Lb_,___ _ _ 8,352,000 Lead, lbs ..... - - - · · · · 49,751,000 Zinc, lbs ............................ 59,312,000 f,7,789,001 4,052,253 8,594,646 53,5° 1,723 71,462,000 - Total value, five metals.............................................. Building Official reports of building and engineering departments of twenty cities in the Tenth District showed a smaller munber of permits issued in 1929 than in 1928, although the value of the permits for the year -exceeded that for the preceding year by 1.4 percent and was the largest .yearly building expenditure since 1925. The smaller number of new projects for which permits were issued during the year reflected a decline in residential construction. Increases in building expenditures over the previous year were reported by nine cities and decreases by eleven cities. The December record of permits and values, however, was the smallest for a month since January 1927. The value of building contracts awarded in the Tenth District in 1929 was smaller by 8.8 percent than in 1928. The decrease for the year was in residential construction, as the figures show an increase of about one-fourth of 1 percent in the value of other types of building construction. The yearly totals for this District, as reported by the F. W. Dodge Corporation, follow: 1928 1929 Residential construction .................. '/, 67,336,406 Other construction........ .................... I 58,779,503 $ 89,573,938 TotaL ................................................. $226,1 I 5,909 f,247,923,633 I 58,349,695 Change% -24.8 0.27 - 8.8 The December report showed contracts awarded had a value of $8,463,885, a decrease of '$5,077,332 from November and $8,047,439 less than in December 1928. BUILDING IN TENTH DISTRICT CITIES MONTH OF DECEMBER ESTIMATED COST PERMITS Percent Change 1928 1929 1928 1929 'f, 96,5 15 1, 49,542 848 -48.7 778 II4 4,650 -93.o 96 325 48,968 7,220 278 316 578.2 30,910 I 5,680 632 761 97- 1 6,200 -36.9 94 1,700 594,35° 7,459 80,950 68.o 48,180 499 495 61,850 19,100 223.8 378 3 14 1,182 00 4o,775 -44.9 879 74, 5 1,1z2,ooo 312,050 4,810 ,2.2 2,415 20 1,052 982 165,235 ,2.5 45,5 80,200 181 -88.o 263 9,585 1,823,410 1,217,686 2,313 49.7 3,5 29 1,944,755 482,750 1,046 1,036 ,5.2 2 8,749 1,445 -40.3 1,173 48,177 262 291 47,875 56,95o - 15.9 8,862 638 560 35,3 00 14•9 2 22,845 466 -59. 55,975 53° 104,825 1,230 184.0 36,915 897 1 0 2 471,320 , 56,749 -55.5 3,457 3, 53 762,010 2,712 2,321 z50,633 -67.1 $4,516,094 VALUE 1928 1929 1> 4,369,632 1, 5,304,876 2,308,689 2,370,568 1,237,629 1,495,008 3,103,100 3, 1 59, 1 89 4,359,182 3,944, 248 -42.0 27,250 30,842 TWELVE MONTHS EsTIMATED CosT 1928 1929 1> 1,966,341 1> 2,009,194 63,922 232,315 1,246,649 805,429 1,030,026 812,495 15,958,4oo 16,633,600 1,291,462 1,578,654 1,453,59 1 644,615 1,843,761 1,634,277 15,826,900 15,270,750 3,221,608 2,56o,098 468,149 555,47° 17,660,653 24,418,295 9,050,410 5,554,497 1,468,012 1,574,521 1,148,558 1,146,749 2,004,407 1,466,745 1,7 27, 155 l ,l 54,I 52 1,993,216 1,751,92-2 12,132,090 13,553,351 7,928,221 8,651,582 f,101,457,294 1,100,034,948 Percent Change - 2.1 263.4 -35-4 26.8 4.2 22,2 -55.7 12.8 - 3-5 -20.5 - 15.7 38.3 -38.6 7.2 - 0,2 -26.8 49.6 -12.I -10.5 9.1 1.4 THE MONTHLY REVIEW 7 RETAIL TRADE AT 35 DEPARTMENT STORES IN THE TENTH FEDERAL RESERVE DISTRICT ACCOUNTS RECElVABLE STOCK TURNOVER SALES STOCKS (RETAIL) Dec. 12 Months Dec. 31, 1929 Stores Dec. 1929 12 Mo. 1929 Dec. 31, 1929 compared to Report- compared to compared to compared to ing Dec. 1928 12 Mos. 1928 Nov. 30, 1929 Dec. 31, 1928 1929 1928 1929 1928 Nov. 30, 1929 Dec. 31, 1928 28.6 1.6 .40 .41 2.87 2.86 ansas City........ 4 -1.5 0.9 -24.2 - 0.4 .34 .38 2. 56 2.44 19.0 3.9 Denver·-··············· 5 -6.9 1.0 -19.5 0.3 Oklahoma City._. 3 4.1 6.3 -20.7 4.2 14.5 16.8 .45 .46 3.39 3.29 Omaha.................. 3 -6.4 3.0 12.7 11.9 Lincoln. __ ............. 2 -8. 7 -2.9 10.7 2,1 2.58 2.63 .37 ·3 2 -10.0 2.13 2.01 24.4 9.0 Topek---- 3 1.2 1.5 .33 .30 Tulsa.................... 4 -1.6 7.5 20.4 21.5 6.4 3.25 3.46 .45 .47 -21,2 2.II 2.01 1 5-7 Other Cities...- ..... 11 -o.8 4.4 .30 .29 - 4.3 9.o COLLECTIONS Dec. 1929 compared to Nov. 1929 Dec. 1928 3.1 1.9 3.1 4.8 -o.8 4.6 7.4 2.5 - 2.8 -6.7 3.4 -0.7 5.1 13.4 - 4.6 -4.0 Ill Total... ................. 35 -2.2 2.5 -20.0 - 1.7 .36 .38 2.77 2.68 18.1 8.1 NOTE: Percentage of collections in December accounts November 30, all stores reporting, 40.0. Collections same month last year 42.8. Trade RE.TAIL: The dollar volume of goods sold at retail at thirtyfive reporting department stores in Tenth District cities in December was the largest for any month of 1929, although smaller by 2.2 percent than for December 1928. Fourteen of the thirty-five department stores reported increases in their December sales over December 1928, the other twenty-one stores reporting decreases. The decline, or part of it, being attributed by dealers to zero weather in the week ending December 21 which effectually checked Christmas buying when it was at its height. The reports show the increase for December over ovember was 44.8 percent, whereas the increase for December over November 1928 was 51 .8 percent. The accumulated sales of the reporting department stores at the close of 1929 showed an increase of 2.5 percent over the total for 1928. Stocks of the reporting department stores were reduced during December and at the close of the month they were 20 ercent smaller than on November 30, and 1.7 percent smaller than at the close of December 1928. WHOLESALE: Distributive trade of reporting wholesale firms, engaged in five lines of merchandising, was in smaller volume in December than in either the month of November or in December 1928. Taking the combined sales in dollars of the five lines the December total was 25,3 percent below that for November, which was more than the customary decline from November to December, while in comparison with December of the preceding year the decline amounted to about 13.4 percent. The reports by lines show December sales of drygoods, groceries, hardware, furniture and drugs all shared in the decline from November, while in comparison with December 192? furniture was the only wholesale line to report an increase in the volume of business. · A summary of the year's business of the reporting wholesale firms in the Tenth District indicates the volume of sales combined for the five lines for 1929 was six-tenths of 1 percent below that of 1928. Inventories at the end of the year showed stocks of groceries, hardware and furniture were larger and of drygoods and drugs smaller than on November 30. In comparison with a year Dry Good Groceries ardwar urnitur Drugs 4 3 - 17.7 - 17.8 - 4.9 -11.7 -4.0 - 3.1 2.3 -20.4 -15.2 3.1 ago, stocks of drygoods, groceries and hardware were smaller, while stocks of furniture and drugs were larger. Reports of implement houses reflected some increase for December over a year ago in orders for implements, tractors and farm machinery for 1930 delivery. COLLECTIO S: Department stores repcrted collections in December amounted to 40 percent of amounts outstanding, which was 2.8 percent below the figure for December 1928. Collections of wholesale firms during Decembe1 was in about the same proportion to amounts outstanding as a year ago, the firms reporting collections "fair'' or " good.'' Some of the implement firms reported collections were not quite up to those for December a year ag0. Lumber The December sales of lumber at 179 reporting retail yards in the Tenth District exhibited more than the customary seasonal decline from November and was smaller than in December a year ago. With the decrease for the month, the accumulated sales of lumber for the full year was 68,074,000 fee~ as compared with 68,815,000 feet for 1928, a decrease of I.I percent. Lumber stocks at the ~nd of the year totaled 40,175,000 feet, as compared with 44,463,000 feet a year ago. The December business of the reporting yards is here compared with that for the preceding month and that for the corresponding month in 1928 in percentages of decrease: Dec. 1929 Compared to Sales of lumber, board feet.................................... Sales of all materials, dollars................................ Stocks of lumber, board feet·--····························· Outstandings, end of month ................................._. :::ollections, during month·--································· Nov. 1929 Dec. 1928 -33.6 -28.8 - 1.9 -18.5 - 8.1 - 17.1 - 6.9 - 9.6 - 5.9 - 7.1 Lumber production in the United States in 1929 was about 2 percent below production in 1928, according to reports of identical mills to the National Lumber Manufacturers Association. Shipments and orders for lumber also were smaller than in the preceding year. The reports of the American R ailway Association indicated lumber carloadings in 1929 totaled 28,331,419,000 board feet, as compared with 28,885,652,000 feet for 1928, a decrease of 554,233,000 feet, or 1.9 percent, for the year. WHOLESALE TRADE IN THE TENTH FEDERAL RESERVE DISTRICT SALES OUTSTANDING CoLLECTIOss Reporting Dec. 1929 compared with Dec. 31, 1929 compared with Dec. 1929 compared with Stores Nov. 1929 Dec. 1928 Dec. 1928 Nov. 30, 1929 J::>ec. 31, 192.8 Nov. 1929 --.::t1.2 6.o -10.9 -6.o 4.6 -33.I 5 7· 8 2.2 -II.4 -11.3 Il,3 -u.7 -27.8 - 5.9 0.4 2.9 -2.2 9.8 33· 1 14.6 2.0 ~.8 1.1 STOCKS Dec. 31, 1929 compared with Nov. 30, 1929 Dec. 31, 1928 -14.I - 17.3 8.1 o.6 0.5 -3 1.7 -22.4 - 2.6 12.1 3.6 8 THE MONTHLY REVIEW VOLUME OF PRINCIPAL TRANSACTIONS HANDLED BY THE FEDERAL RESERVE BANK OF KANSAS CITY FOR THE YEARS 1929 AND 1928 1929 1928 NUMBER Notes discounted or rediscounted for member banks ..........· - - -- -- - 30,643 Currency received and counted ............................................- - -- -··············· ...... 66,691,598 Coin received and counted ....................................................................... _ _ __ 67,038,107 72,155,000 Checks handled ...............- -- -····················································--- Collection items handled .................................................................................................... 326,828 149,'439 Transfer of Funds ...............................................·- - - · ············································· U. S. Government Coupons handled ................... - - - - · · · ························ ··········· 1,152,151 U. S. Securities received from Treasury Department .................................................. 101,473 U.S. Securities returned to Treasury Department.... _ _ _ _ _ _ _ _ __ 178,330 221,716 U.S. Securities issued, redeemed, canceled or exchanged as Fiscal Agent of the U.S. Custody transaction,.___ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ 338,337 Mail handled and value of registered mail...... _ _ _ _ __ 3,556,955 Purchase and sale of Government Securitie._,_____ _ __ _ 4,571 AMOUNT '/, 1,673,244,949.53 315,847,389.00 12,966,024.00 12,091,899,000.oo 298,309,928.40 6,974,730,653.71 19,919,320.00 166,508,33 I.86 213,888,492.35 34j;143,866.oo 418,055,956.03 1,384,124,429.35 192, 156,593.75 NUMBER 23,7 1 4 59,698,468 72,308,170 69,570,000 323,695 139,,879 1,481,296 137,453 429,928 513,264 389,286 3,i96,u5 3,99o AMOUNT '/, 1,359,337,42 2.93 279,128,200.00. 13,165,119.05 I I ,523,602,000.00 300,200,070.83 6,501,914,844.82 18,115,606.40 205,668,850.00 206,866,056.28 368,655,783.50 362,034,831.50 1,181,863,424.18 276,441,563.96 Business Conditions in the United States By the Federal Reserve Board Industrial activity declined further in Decembet. There was little change in commodit y prices . and conditions in the money market continued easy. PRODUCTION AND EMPLOYMENT: Industrial production, as measured by the Federal Reserve Board's index, which is adjusted for seasonal variations, declined by 6 percent in December, following upon a decline of 9 percent for the preceding month. Nearly all industries reported larger than seasonal reductions in December, except for food industries, which showed little change, and coal, in which the output increased. The largest declines in December, as in earlier months, were in automobiles and iron and steel. Production in the textile, shoe, lumber and the nonferrous metals industries also decreased considerably. Stocks of cotton textiles, copper, zinc, and lumber increased in December. In the first three weeks in January steel plants increased their operations somewhat from the low rate prevailing at the holiday season, but were considerably less active than in January 1928, or 1929. There were further decreases in the output of copper and lumber, while production of crude petroleum increased. Employment in factories in December declined more than the usual amount in the automobile, steel, textile, clothing, and lumber industries. Little change was reported for the food industries and car-repair shops, while at meat-packing plants and in the paper and printing industries there was some increase in employment. Building contract awards also declined further in December. Residential contracts continued to be in small volume and there were large decreases in awards for commercial buildings and public works and utilities. During the first half of January awards were larger on a daily average basis than in December. DISTRIBUTION : Freight car loadings in Decem 1.Jer, as in the preceding month, showed more than the usual seasonal decline. The decline occurred principally in shipments of merchandise and lumber products, while loadings of coal and grain were larger than in November. Sales at department ~tores in leading cities were about 3 percent smaller than in December,1928, according to reports to the Federal Reserve system. Decreases in sales were reported for ten Federal Reserve districts, and increases of 2 percent for the R ichmond district and little change for the San Francisco district. WHOLESALE PRICES: During December wholesale prices of commodities fluctuated rather narrowly. Grain, livestock, meat and bituminous coal prices increased somewhat, while prices of hides and leather products, textiles, petroleum, and pig iron declined. In the first half of January there was little further change in prices. BANK CREDIT: Member bank credit increased less than usual over the year end and in January continued t0 reflect the liquidation which began early in November. On January 15, total loans and investments of member banks in leading cities were $478,000,000 below the level of December II, 1929. This decline occurred both at banks in New York City and outsid and was in "all other loans,'' apparently reflecting a seasona decrease in inter-bank loans together with a decreased demand . for credit by commercial borrowers. Investments and loans on securities increased slightly during the period. Reserve bank crecit outstanding increased during the latter half of December in response to seasonal demand for currency and gold exports, but declined in January as currency returned from circulation. Between the week ending December 14 and the week ending January 18 there was a net dedine of $277,000,000 in currency in circulation, and also a decline of $37,000,000 in member bank reserve balances. Of the fun ds thus released $64,000,000 served to offset a loss in the monetary gold stock of the country and $244,000,000 was used to retire reserve bank credit. Reserve bank holdings of government securities showed an increase of $90,000,000 for the period, acceptances showed little change, while discounts for member banks declined by $347,000,000. Money rates in the short-terms open market firmed somewhat over the year-end but eased early in January, and throughout the first half of the month remained generally at the lowest levels since the spring of 1928. The discount rate at the Federal Reserve Bank of Philadelphia was lowered on January 16, from 5 to 4¼ percent, the rate prevailing at six other Federal Reserve banks.
@FedFRASER