The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
THE MONTHLY REVIEW Of Agricultural, Industrial, Trade and Financial Conditions in the Tenth Federal Reserve District FEDERAL RESERVE BANK OF KA N SAS CI TY M. L. McCLURE, Chairman and Federal Reserve Agent A. M. McADAMS, Assistant Federal Reserve Agent and Secretary Vol. 16 KANSAS CITY, Mo., I N the early months of 1930 agricultural conditions in this District were favorable, spring work on farms was farther advanced, seed beds better prepared, and spring sown crops planted under more favorable conditions than for several years past. Record or near record crops of small grains were harvested and prices paid for grains, livestock, and livestock products during the first quarter of the year were generally satisfactory. Price declines during the year affected all Tenth District agricultural commodities, regardless of scarcity or abundance, and, although the harvested acreage of crops was 1.3 percent greater in 1930 than in 1929, the combined value of all crops, as estimated by the United States Department of Agriculture, declined 32.8 percent. Production of flour, crude oil, soft coal, zinc ore, lead ore, and cement was less in 1930 than in 1929, price ranges for these commodities were lower than in the previous year, and the dollar volume ·of trade at both wholesale and retail declined. BUSINESS IN THE TENTH FEDERAL RESERVE DISTRICT Percentages of Increase, or Decrease (-), for December 1930 over November 1930 and December 1929, and for the year 1930 over the year 1929 December 1930 Year 1930 over over General Nov. 1930 Dec. 1929 Year 1929 Payments by check, 29 cities............................ - 2.0 -12.4 - II.I Federal Reserve Bank clearings.................... 4.5 -14.2 -13.7 Business failures, number_ _ _ _ ·············· -17.5 37.5 8.o Liabilities.......................................................... -65.4 20.5 31.8 Building permits, 18 cities, value.. _ _ _ _ 68.o 38.0 --21.6 Building contracts awarded, value _ _ _ _ . 17.2 52.4 20.6 Retail sales, 38 department stores.................... 57.0 - 4.0 - 4.8 Wholesale sales, 5 lines combined._................... - 4.7 - 8.8 - 11.4 Lumber sales, 173 retail yards.......................... -35.8 --24.3 --24.9 Grain Receipts, 5 markets Wheat...· - - - -························· · - - 66.1 - 1.9 - 9.5 Corn ........................·-----·················· 170.2 12.6 5.6 Oats ................................................. _ _ _ _ 7.1 -41.4 3.1 Rye........................................................................ - 6.7 --70.8 - 38.9 Barley..................................... _ _ _ _ __ -52.2 -51.4 -0.5 Kafir...................................................................... - 11.7 -42.0 - 47. 1 Livestock Receipts, 6 markets Cattle.................................................................... - 0.3 - I.4 9.9 Calves.................................................................... --27.4 23.8 9.3 12.6 Hogs ........ ·······················----··················· 33.3 -13.0 4.6 Sheep............ ·---······································· I.I 27.4 Horses and mules................................................ o.6 - 42.6 --21.2 Production Flour...................................................................... I.I 1.2 - 3.8 Crude petroleum.................................................. - 3.0 --20.3 - 10.7 Soft coal.. ....,__ _ _ _ - - - - ·· 6.o --20.0 --20.5 Zinc ore (shipped) Tristate District.................. - 1.0 --21.7 - 2 7.3 Lead ore (shipped) Tristate District................ - 8.2 -54.5 - 54.1 Cement ................................................ _................. - 6.3 -30.8 - 1.6 Meat Packing, 6 cities Cattle................................................................... . O.I -3.6 31.3 Calves............................................... _ _ __ 10.8 -0.5 14.7 Hogs ................................ _ _ _ _ _ __ - 17.6 31.8 Sheep,_ _ _ __ 15.6 40.3 FEBRUARY 1, 1931 No. 2 A REASONABLY satisfactory volume of holiday trade is , indicated by December sales of reporting department stores, which were 57.0 percent larger than in November and, making no allowances for price declines, only 4.0 percent smaller than in December, 1929. Combined sales of representative wholesale houses engaged in five lines of merchandising were smaller in December than in November or in December, 1929. Stocks of merchandise at both wholesale and retail were further reduced during the month, and on December 31 were substantially smaller than on the corresponding date last year. There was an increase in building operations during the month, both as compared with the preceding month and the corresponding month last year. Flour mills operated at a lower rate of activity than for several months, and the December production was slightly less than that of December, 1929. There was an increase over November in all meat packing operations, and, compared with December, 1929, more calves and sheep, about the same number of cattle and fewer hogs were slaughtered. Cement, petroleum, zinc ore and lead ore production was less in December than in November or in December last year. Prices of some agricultural commodities strengthened slightly during the month, but pork prices declined and at the month's close were the lowest since 1924. The December average price of butter was the lowest for any month of any year since 1910, and although poultry prices showed a slight seasonal increase, egg prices continued to decline, and by mid-January the farm price was only 15 cents per dozen, compared to 31 cents per dozen at the same time last year. Lead ore prices declined 'l,7.50 per ton the first week in January. Gasoline prices strengthened somewhat. Banking and Credit Smaller demands for credit, lower interest rates, increased savings deposits and time deposits, increased investments, and a decrease in the amount of checks drawn against individual deposits were the outstanding factors in the fin ancial situation of the Tenth Federal Reserve District in 1930 as compared to 1929. REPORTING MEMBERJ BANKS: Year-end comparative reports of fifty-six reporting member banks in leading cities of this District reflect a decline for the year of 10.9 percent in loans and discounts, and an increase of 16.5 percent in investments. The decline in loans and discounts was evenly divided between loans secured by stocks and bonds and " all other'' loans, and the increase in investments evenly divided between investments in This Copy Released For Publication In Afternoon Newspapers January 29 THE MONTHLY REVIEW 2 United States government securities and other bonds, stocks, and securities. Time deposits on December 31, although slightly under the year's all-time record peak, were 13.5 percent above the December 31, 1929 total. Demand deposits at the close of this year were 5.1 percent less than at the close of the preceding year. The principal resource and liability items of the reporting member banks, as of the two, dates appear in the following table: Dec. 31, 1930 Loans and investments- totaL- ...................... . $66:2/206,000 Loans and discounts-tota.,____ _ _ __ 408,816,000 108,000,000 Secured by stocks and bonds.--····················· All other loans and discounts ....................... . 300,816,000 Investments-total.. ................ _ _ _ _ __ 253,39°,000 U. S. Securities .................... _ _ _ _ __ 106,349,000 147,041,000 Other bonds, stocks, securities_ ···········-······· Reserve with F. R. Banlc................................ . 56,753,ooo Net demand deposits............. - - - - - - 476,:284,000 Time deposits.-.................................................... . 190,397,000 2,099,000 Government deposits.. ································-······ Dec. 31, 19:29 '1,676,375,000 458,807,000 125,087,000 333, 7:20,ooo 217,568,000 93,355,000 1:24,:213,000 5:2,:267,000 501,817,000 167,734,ooo 794,ooo RESERVE BA K OPERATIO S: The weekly condition statement of the Federal Reserve Bank of Kansas City and branches, as of December 31, showed no material changes from figures shown for the last several weeks of the year. Compared to the condition statement of December 31, 1929 there was an increase of 18,716,622 or 45.8 percent in the total of bills and securities held, due principally to _an increase in holdings of United States govermnent securities which were $28,548,500 larger on December 31, 1930 than on the corresponding date in 1929. Federal Reserve note circulation on December 31 was 23.5 percent less than one year earlier, and total reserves 27.8 percent less. The total of bi1ls rediscounted for member banks on December 31, 1930 was $15,041,747, or 49.3 percent less than the total held on Decem her 3 I, I 929. Changes in the principal items in fifty-two weeks are indicated by a comparison of the December 31, 1929 and 1930 condition statements which follow: Gold reserves .. ··································-·················· Reserves other than gold ............ ·-····-·-············ Total reserves ........................ _........................... . Bills discounted .......................................... ·-······ Bills purchased ................................................... . U. S. Securities ............................... _ _ __ Total bills and securities .................. ·-········-····· Total resources....... ········································-··· F. R. otes in circulation ................................. . Total deposits...................................... ........... . Dec. 31, 1930 'f, 9 2,37 1,553 7, 199,856 99,57 1,409 15,041,747 12,970,649 31,6u,500 59,623,896 199,078,c93 68,424,180 89,528,956 Dec. 31, 19:29 $131,718,862 6,172,445 137,891,307 29,649,108 8,195,166 3,063,000 40,907,:274 :2:26,461,976 89,434,:280 88,:288,984 The discount rate of the Federal Reserve Bank of Kansas City, on all classes of paper and all maturities, remained unchanged at 3.½ percent. cent from the amount reported for the corresponding four weeks' period in the preceding year. The report in detail: DEBITS IN TWENTY-NI E TE TH DISTRICT CITIES FIFTY-Two WEEKS ENDING Percent Dec. 31, 1930 Dec. 31, 19:29 Chan6e 'f, Albuquerque, N. M·--·· I 50,66 I ,ooo '/, 161,814,000 - 6.9 Atchison, Kans ................................ 72,642,000 80,894,000 -10.:2 Bartlesville, Okl :277,67:2,000 13.0 3 13,644,000 Casper, Wyo .................................... 85,112,000 97,502,000 -14.8 Cheyenne, Wyo ................................ 78,870,000 88,938,000 -11.3 Colorado Springs, Colo 201,916,000 206,997,000 - 2.5 Denver, Colo................. 2,4 25,4 13,000 -15.1 :2,058,:2:2:2,000 Enid, Okla ........ 203,552,000 :215,498,000 5.5 Fremont, Nebr 53,:279,ooo -14.0 45,797,000 Grand Junction, Colo...................... 38,:24:2,000 46,408,000 -17.6 Guthrie, Okla. ................................... 37,186,000 43,150,000 -13.8 Hutchinson, Kans ............................ :233,53:2,oco 304,867,000 -:23.4 Independence, Kans ........................ 16o,638,ooo - 19.5 1:29,:239,ooo Joplin, Mo ........................................ 184,028,000 -29.:2 130,36o,ooo Kansas City, Kans.......................... :240,49:2,000 :244,I I 1,000 1.5 Kansas City, Mo 5,67:2,:2:20,000 -r:2.1 4,985,655,000 Lawrence, Kans._. 63,718,000 - 9.5 57,679,ooo Lincoln, ebr. 406,309,000 428,588,000 5.:2 Muskogee, Okla._............................. 125,851,000 152,581,000 - 17.5 Oklahoma City, Okla ...................... 1,473,440,000 I ,500,444,000 - 5.6 Okmulgee, Okla .................. ·-··········· 67,47:2,oco 96,654,000 -30.:2 2,757,5 20,000 - 9.1 Omaha, ebr....... - ........................... 2,506,576,000 74,:266,000 -14 . 8 63,300,000 Pittsburg, Kans .... ·--······················· Pueblo, Colo._................................. :25:2,150,000 284,004,000 -11.:2 Salina, Kans ...................................... 151,638,000 169,771,000 - 10.7 St. Joseph, Mo. 56:2, 704,000 700,725,000 - 19.7 Topeka, Kans .................................. 245,894,000 247,910,000 - o.8 1,779,805,000 1,983,703,000 - 10.3 Tulsa, Okla·-··························-·········· Wichita, Kans .................................. 838,912,000 -11.4 743,07 1,000 - - - Total :29 cities, 5:2 weeks ................ $17,441,ou,ooo Total :29 cities, last 4 weeks............ 1,:247,839,000 $19,6:2:2,:2:25,000 1,424,754,000 -II.I - 1:2.4 RESERVE BANK CLEARINGS: Checks handled for collection during the year 1930, by the Federal Reserve Bank of Kansas City and its branches a't Omaha, Denver, and Oklahoma City, numbered 69,880,354 items and totaled $10,430,350,000. These figures show a reduction from the previous year of 3.2 percent in the number of items handled and 13.7 percent in the dollar amount. The December totals of number and amount of items handled were 4.7 percent and 14.2 percent, respectively, below the December, 1929 totals. The totals follow: iTEMS December 1930..................................................... . 6,301,080 ovember 1930..................................................... . 5,420,092 December 19:29..................................................... . 6,615,000 Twelve months 1930............................................. . 69,880,354 Twelve months I 9:29·-··········································· 7 2, 154,3 17 'f, AMOUNT 845,141,000 808,388,000 985,482,000 10,430,350,000 1:2,091,899,000 PAYME TS BY CHE CK: Debits to individual accounts, reported for twen ty-nine cities in the Tenth District aggregated $17,441,ou,ooo for the year 1930. This total exceeded that for any preceding year except 1929 and 1928. Compared to 1929 there was a decrease of II.I percent, and compared to 1928 a decrease of o.6 percent. The decrease for the year was general, an increased total being shown for only one of the twenty-nine reporting cities. SAVINGS: Consolidated reports of fifty-one reporting banks and savings institutions in leading cities of the District reflect the customary seasonal decline in savings deposits between December I, 1930 and January I, 1931, but show an increase of 6.9 percent during the year 1930. The number of savings accounts reported by forty-eight banks increased 1.3 percent during December, and 4.4 percent during the year. Reports for the four weeks' period ended December 31 showed debits amounted to 1,247,839,000, a decrease of $25,145,000 or 2.0 percent from the total of the preceding four weeks' period ended December 3, and a decrease of 176,915,000 or 12.4 per- Savings Accounts Savings Deposits 48 Banks 51 Banks January 1, 1931 ............................................. . 1:26,3oo,745 4 25,4 23 December 1, 1930........................................... . 4:20,1:25 1:28,06o,:255 January 1, 1930............................................. . 11 8, 11 9,499 4°7,395 THE MONTHLY REVIEW Stores Reporting Kansas CitY·-····· 4 Denver ................ 5 Oklahoma City.. 3 Omaha ................ 3 Lincoln ................ 2 Topeka ................ 3 Tulsa·-················· 4 Wichita._ ............. 4 Other Cities ........ 10 3 RETAIL TRADE AT 38 DEPARTMENT STORES IN THE TENTH FEDERAL RESERVE DISTRICT STOCKS (RETAIL) SALES STOCK TURNOVER AccoUNTS RECEIVABLE COLLECTIONS December 1930 12 Months 1930 December 31, 1930 December 12 Months December 31, 1930 December 1930 compared to compared to compared to compared to compared to December 1929 12 Months 1929 Nov. 30, 1930 Dec. 31, 1929 1930 1929 1930 1929 Nov. 30, 1930 Dec. 31, 1929 Nov. 1929 Dec. 1929 --24.2 - 8.5 - 8.9 2•75 2.83 - 6.3 .40 - 6.7 -4.5 .39 - 3.7 3 2-3 I.O - 4.0 --20.7 -1 1.5 20.I 6.6 .40 2.76 2.61 -3.0 - 2.3 .35 -24.1 - 2.3 0.4 - 2.4 I0.8 o.6 .44 - 9.1 - 2.7 .45 3-45 3.44 - 1.6 -10.0 - 1.4 17.0 3.6 1.9 -18.4 - 0.2 -17.8 2·95 2 -53 2.2 - 6.o .38 .32 - 3.5 11.4 - 3.3 -16.4 - 3.2 15•4 - 9.7 -i5.9 2.30 2.23 - 6.3 .34 .33 - 4.3 7.9 -o.8 - 7.8 - 3.0 I.I - 25,9 .46 - 14.4 17.0 - 3.3 •45 -12.5 - 8.9 .40 I.I --24.3 .32 -31.7 17.2 - 9.6 - 13.3 -I0.8 - 6.4 --22.3 -12.3 .28 10.6 Even .29 2.13 2.08 - 3.0 1.7 Total.. ................. 38 - 4.0 - 4.8 --21.9 - 9.8 .38 .37 2.91 2.80 17.9 - 2.2 - 0.7 NOTE: Percentage ot collections in December on accounts November 30, all stores reporting 39.6. Collections same month last year 40.2 Commercial Failures The December record of business insolvencies in the Tenth Federal Reserve District, as compiled by R. G. Dun and Company, disclosed that liabilities involved in 132 failures during the month aggregated 1,902,285, a decrease from November of 17.5 percent in numbers and 65.4 percent in total liabilities. Compared to December, 1929 there was an increase of 36 failures, and $324,190 or 20.5 percent in total liabilities. The year's record for the Tenth District of 1,540 failures, and $28,885,893 of liabilities was the largest, for both items, on records dating back to 1919. The number of failures and amount of liabilities for the periods under comparison, are here shown: December 1930................ November 1930................ December 1929................ Twelve months 1930........ Twelve months 1929........ TENTH DISTRICT Number Liabilities 132 'I, 1,902,285 160 5,495,310 96 1,578,095 1,540 28,885,893 1,426 21,915,767 UNITED STATES Number Liabilities 2,525 $ 83,683,361 2,031 55,26o,730 2,037 67,465,114 26,355 668,283,802 22,909 483,250, I 96 Trade RETAIL: December retail trade in this District, as measured by the dollar volume of sales of thirty-eight department stores, was, as usual, larger than that in any previous month of the year, showing a 57.0 percent increase over November-more than the usual seasonal increase, but reflecting a decrease of 4.0 percent under December, 1929. The accumulated total sales in dollars for the year were 4.8 percent smaller than in the preceding year. Taking into consideration the lower price level of many articles, the reduction of 4.8 percent in dollar volume indicates little or no reduction in consumption of goods. Stocks of merchandise on hand December 31,1930 were 21.9 percent less than on November 30, and 9.8 percent less than on becember 31, 1929. WHOLESALE: Distribution of merchandise in the Tenth District by wholesalers of each of the five reporting lines, drygoods, groceries, hardware, furniture, and drugs, was smaller 3.8 in December and the year 1930 than in December and the year 1929. The total sales of the five lines combined were 4.7 percent less in December than in November, and 8.8 percent less than in December, 1929. The 1930 sales of the five lines combined, were 11 .4- percent smaller than the 1929 sales. Each of the five lines, except groceries, reported smaller stocks on hand December 31, 1930 than one month or one year earlier. COLLECTIONS: The department store average of collections during December on amounts outstanding November 30 was 39.6 percent as compared with 40.2 percent in December, 1929. The accounts outstanding December 31, due to heavy credit purchases during the holidays, were 17.9 percent greater than the outstandings as of November 30. Total outstandings of each of the five reporting wholesale lines were less on December 31 than on November;30 or December 31, 1929, and the December collections were less for all lines than in December, last year. Building ~: :December weather conditions were ideal for winter building operations and although reports from eighteen cities in the Tenth District show the customary decline in the number of permits issued as compared to ovember, there was an increase of 68.o percent in the estimated cost. Compared to December, 1929 there was a decrease of 6.1 percent in the number of permits issued, but an increase of 38.0 percent in their estimated cost. However, there were fewer permits issued in December, this year, than in any December since 1920, and the estimated cost with the exception of December, 1929, was the smallest for any December since 1920. There were fewer building permits issued in the eighteen cities in 1930 than in any year since 1920, and the estimated cost was the smallest for any year since 1921. There was a sharp falling off during the year in residential construction. The value of building contracts awarded in the Tenth District in 1930, as reported by the F. W Dodge Corporation, was the largest on five years' records, and 20. 6 percent larger than WHOLESALE TRADE IN THE TENTH FEDERAL RESERVE DISTRICT Reporting Stores Dry Goods ...................................... Groceries ........................................ Hardware........................................ Furniture ........................................ Drugs .............................................. 5 6 9 6 6 SALES Dec. 1930 compared to Nov. 1930 Dec. 1929 -II.I - 6.5 - 12.6 - 6.4 - 1.7 -13.6 --24.6 17.6 - 0.1 - 7.1 OUTSTANDINGS Dec. 31, 1930 compared to Nov. 30, 1930 Dec. 31, 1929 -IO.I - 17.7 -IO.I -4.7 -IO.I - 3.4 -10.3 -31.3 -12.1 -10.5 COLLECTIONS Dec. 1930 compared to Nov. 1930 Dec. 1929 -16.5 19.1 - 6.8 - 6.4 1.8 -r5.5 17.0 --25.5 13.2 - 17.3 STOCKS Dec. 31, 1930 compared to Nov. 30, 1930 Dec. 31, 1929 - 8.8 -14.4 I.8 9.6 - 1.3 - 3.8 - 12.4 -39. 2 -12.7 - 11.5 THE MoNTHLY REVIEW BUILDING IN TENTH DISTRICT CITIES Albuquerque, N. M ...... Cheyenne, Wyo Colorado Springs, Colo ...... Denver, Colo Hutchinson, Kan Joplin, Mo Kansas City, Kan Kansas City, Mo........ Lincoln, Nebr...... Oklahoma City, Okl Omaha, Nebr Pueblo, Colo...... Salina, Kans........ St. Joseph, Mo.. - .. Shawnee, Okla...·- ······ Topeka, Kans...... Tulsa, Okla........ Wichita, Kan MONTH OF D ECEMBER Estimated Cost Permits 1929 1930 1930 1929 $ 49,54 2 $ 66,190 33 39 48,968 24 54,486 30 30,910 25 34,335 33 258,400 223 254 594,35° 80,950 40 27 236,545 IO 61,850 13 8,925 26 221,96o 4o,775 39 121 312,050 2,004,450 97 28 9 1,565 45,5 20 33 1,823,410 2,250,119 173 244 90,86o 482,750 31 25 26,553 28,749 44 34 16 8 47,875 5,59° 12 27,94° 8,862 24 20 II 12,015 22,845 165,012 104,825 27 39 148 138 471,320 543,849 250,633 121,339 115 76 Total 18 cities......... 1,104 1,176 the 1929 total. Awards for residential construction were 37.1 percent less than in 1929 and 52.7 percent less than in 1928. The report for December showed awards of $12,897,799 which was $1,893,420 greater than the November total, and $4,433,914 greater than for the corresponding month of the preceding year. December awards for residential construction were the largest for any month since March and for any December since 1927. The totals: CONTRACTS R esidential December 1930.......... - - - - - - - - - '$ 4,186,167 November 1930 .. _ _ _ _ _ _ _ _ __ 2,588,238 December 1929.......... _ _ _ _ _ __ _ _ 2,246,683 Twelve months 1930._ __ _ _ .................. 42,384,447 Twelve months 1929_ _ _ _ _ __ _ _ 67,336,406 AWARDED Total '$ 12,897,799 11,004,379 8,463,885 272,616,926 226,1 I 5,909 Lumber · December sales of lumber at retail, due to annual inventories and weather conditions are usually the smallest for any month of of the year and 1930 was no exception. Reports from 173 retail yards in this District indicate December sales were 35.8 percent less than November sales and 24.3 percent less than sales in December, 1929. Cumulative sales for the year were 24.9 percent less than those for 1929. Stocks of lumber on hand December 31 were slightly smaller than on November 30 and 6.1 percent smaller than on December 31, 1929. Outstanding accounts were reduced 15.8 percent during the month and at the close of the year were 6.1 percent less than on December 31, last year. December is compared to the preceding month and the corresponding month in 1929 in the following table of percentages: December 1930 Compared to November 1930 December 1929 Sales of lumber, board feet ........ _ _ _ _ - 35.8 -24.3 Sales of all materials, dollars ..·-····················· -34.5 - 27.1 Stocks of lumber, board feet.......................... - 1.0 6.1 Outstandings, end of month........ -1 5.8 - 6.1 Collections during mont - 2.8 -26.4 According to reports of two hardwoods associations and eight softwoods associations to the National Lumber Manufacturers Association, production of lumber in the United States in 1930 was only 76 percent of the 1929 production, shipments 77 per- '$6,220,133 '$4,506,184 TWELVE MONTHS Permits Estimated Cost 1930 1929 1930 1929 $ 1,520,898 778 '$ 1,966,341 94 1 641,116 316 330 805,429 632 926,322 1,030,026 565 6,200 8,007,100 5,420 16,633,6oo 1,893,161 1,578,654 4 29 495 236 314 858,765 644,615 670 1,329,053 879 1,843,761 1,961 2,415 15,942,375 15,270,750 615 982 2,560,098 1,597,634 20,848,934 3,447 3,5 29 24,418,295 1,046 5,121,226 854 5,554,497 1,030 1,173 1,574,5 21 537,206 274 262 808,936 1,146,749 511 56o 1,466,745 343,477 233 1,7 27, 155 1,599,465 53° 684 2,425,163 897 1,751,922 2,407 8,354,120 12,132,090 3, 2 53 2,712 1,765 6,276,230 8,651,582 22,372 26,973 '$79,031,181 '$100,756,830 cent of 1929 shipments, and orders received, with cancellations deducted, 76 percent of the 1929 total. These figures indicate curtailment in production corresponding to curtailment in demand. Flour Milling Operating at 67.8 percent of capacity during the calendar year 1930, flour mills in this District, reporting weekly to the Northwestern Miller, produced 25,815,181 barrels of flour, 1,044,690 barrels or 3.8 percent less than they produced in 1929 when operating at 69.8 percent of capacity. The 1930 total is the third largest of record, being exceeded by the 1928 and 1929 totals. December production was at a seasonally low rate of activity due to the holiday season and inventory taking, and the production of 2,069,926 barrels was the smallest for any December since 1925 although only 24,801 barrels or 1.2 percent less than was produced in the corresponding month last year. The output of flour for December and the year, with comparisons, is shown in the following table for the various milling centers, as compiled from the weekly- returns to the Northwestern Miller: Dec. 1930 Nov. 1930 Dec. 1929 Year 1930 Barrels Barrels Barrels Barrels Atchison ...... _ _ _ _ _ 129,876 134,279 110,636 1,6o4,517 Kansas City......- - - 631,454 620,627 636,215 7,768,810 Omaha ..............- - - 101,354 100,357 97,349 1,281,258 Salina ........... ·- - - - ·· 180,427 170,104 158,836 1,994,386 St. Joseph ....... _ _ _ _ 25,710 27,166 134,833 862,321 Wichita ...........· - - - · · 139,380 139,465 146,124 1,846,867 Outside................................ 861,725 854,691 810,734 10,457,022 - - - Year 1929 Barrels 1,488,473 7,955,368 1,151,663 2,030,191 1,537,265 1,880,733 10,816,178 - - - - - - ---- ---- Flour buyers continued to purchase for immediate requirements only, and orders booked were for small lots for immediate shipment although December inventories showed stocks were at low levels. Shipping directions on flour bought at higher price levels were reported good and about normal for the season. Flour and mill feed prices declined during the year in sympathy with grain prices, and December flour prices compared to November prices remained unchanged, but mill feed prices declined to the lowest level of the year during the month and advanced slightly with the advent of the new year. THE MONTHLY REVIEW 5 Grain Marketing Agriculture Receipts at the six principal grain markets in the Tenth District were smaller during the past year than in 1929 on all classes of grain except corn and oats. 1930 receipts of wheat and barley were the smallest for any year since 1927, rye the smallest since 1925, and kafir the smallest since 1923. Receipts of corn were, with the exception of 83,844,000 bushels received in 1928, the largest on twelve years' records, and of oats the largest since 192 5. :" The condition:of fal(sown grains-winter wheat and rye-is reported good to excellent, not damaged by alternate freezing and thawing, and providing fair to good pasture. Corn husking and the threshing of grain sorghums were practically completed by January 15, and some plowing was being done in the southern sections of the District. The ranges of the mountain states have been unusually snowfree so far this winter and January reports indicate pastures, ranges and livestock in good condition, and feed supplies adequate. December receipts of wheat and corn . were seasonally larger than November receipts, and receipts of the latter were the largest, and of the former the smallest for any December since 1927. The December receipts of oats and rye were the smallest on twelve years' records for that month, and of kafir the smallest for any December since 1923. RECEIPTS OF GRAIN AT TENTH DISTRICT MARKETS WHEAT CORN OATS RYE BARLEY KAFlR Bushels 37,266,650 90,490,440 44,664,000 13,183,500 24,513,300 Bushels 2,140,000 30,212,500 24,369,800 10,885,500 2,453,100 Bushels Bushels Bushels Bushels 16,500 1,200 285,000 1,691,300 5,594,000 468,oco 2,840,000 2,480,500 7,048,000 784,000 1,339,200 2,348,000 37,500 365,750 31,500 150,000 6,500 581,100 167,700 1930........ 210,u7,890 1929........ 232,169,680 1928 ........ 216,641,540 1927........ 175,945,400 Year 1926........ 183,387,750 Dec. 1930........ 12,631,490 Nov. 1930........ 7,603,190 Dec. 1929 ........ 12,879,630 70,06o,900 66,336,250 83,844,200 59,964,350 15,156,500 14,701,000 13,672,000 13,030,500 14,051,000 579,000 540,500 987,500 Hutchinson·-··· Kansas City.... Omaha.-........... St. Joseph ........ Wichita ............ Year Year Year Year - - - - - - - - - --- - --- --- 50,535,500 9,433,550 3,491,050 8,378,000 1,297,200 2,122,700 1,699,500 2,009,900 1,7n,200 81,300 87,100 278,200 5,4n,050 4,371,000 5,436,700 8,261,600 5,983,350 7,323,400 2,852,250 6,573,600 979,900 4,742,000 208,950 553,300 436,900 626,800 430,350 954,500 Wheat price recessions were almost continuous throughout the year, and in November the price was the lowest in twentyfive years. The December top at the Kansas City market for No. 2 hard winter wheat was 79 cents per bushel, compared with the year's top in January of $1.40 and a 1929 top of $1.80. The bottom price for the year was 65 cents in November, compared to 70 cents in December and 90 cents in May, 1929, the low point of that year. The year closed at the December bottom price of 70 cents per bushel as compared to '1,1.27 per bushel December 31, 1929. During the first half of the year corn prices were steady, averaging appro~imately IO cents per bushel under prices prevailing during the corresponding period in 1929, but the July and August drought boosted corn prices 15 cents to 20 cents a bushel to a Kansas City top of $1.02, which was above the price of wheat. The substitution of wheat and other grains for corn, less livestock on feed, and mild weather, reduced the demand for corn for feeding purposes, and though the nation's corn crop was the smallest since 1901, prices declined below 60 cents per bushel in the final week of the year to the lowest level since September, 1922, and 30 cents below December, 1929 prices. Oats prices reached a low of 30,½ cents per bushel in November, the lowest since ovember, 1921 and closed the year 14 cents per bushel under 1929 closing prices. DECEMBER GRAIN PRICES AT KANSAS CITY High 1930 1929 No. 2 hard winter wheat i .79 $1.40 No. 2 mixed corn............ .73 .90 No. 2 white oats............ .37 •47½ Low 1930 1929 $ .7o $I.IS .55 .82 .31 ~1 •45 Closing 1930 1929 $ .70 f,I.27¾ .55 .85½ .31 ¼ •45 Livestock The 1930 livestock situation in the Tenth Federal Reserve District was featured by decreases in the value of all classes of livestock and livestock products to the lowest levels in recent years. Feeding operations were not as great as usual and there was comparatively little forced liquidation during the period of lowest prices. Mild weather has prevailed thoughout the range areas. up to this time, reducing feed requirements and aiding in the maintenance of livestock in good condition. PRICES: Cattle prices were at the year's peak in January, reached bottom the middle of August, and then recovered a part of their losses by the close of the year. Toward the end of April the increased marketings, declining prices for hides and other by-products, and dullness in the dressed beef trade depressed the market until prices were carried down by midAugust to the lowest point since 1923, fat steers being quoted at $4 to $5 under prices prevailing at the corresponding time in 1929, but recovered part of the loss and closed the year only $2 to $3 under the 1929 close. In September prices of fat lambs slumped to the lowest point since 1914 and of feeder lambs and ewes to the lowest point since 1921, and the year closed with the price average approximately $ 5 per head under the 1929 close, but approximately 75 cents per head above the September low. Wool prices worked constantly lower during the year and averaged 50 percent under 1929 prices. Early in the year sales were made at 17 cents to 22 cents per pound, but quotations were 12 cents to 14 cents at the close of the year. Hog prices during most of the year were on a somewhat lower level than in 1929, but were well enough adjusted to feed prices that feeding operations were fairly profitable. The year's highest prices were reached in August, but recessions began in September, and the end of the year found prices at the lowest level since 1924, and at about '/,1.75 per hundred under prices prevailing one year earlier. December prices were steady for all classes of livestock, except hogs, which declined to the year's low level during the month. MARKET MOVEMENTS: A compilation of 1930 receipts of livestock at the six principal markets in the District, shows receipts of cattle were the smallest since 1915, of calve~ the largest since 1925, and of sheep the largest on records dating back to 1910. Receipts of hogs were the smallest for any year since 1927. December receipts of cattle were the smallest for any month since August, but the largest for any December since 1925. The month's receipts of calves were the smallest since July, but the largest December total of record. Market arrivals of sheep were the largest for any December since 1919 and of hogs the smallest for any December since 1927. 6 THE MONTHLY REVIEW FEEDING OPERATIONS: Feeder movements, as reported by the Kansas City, Omaha, St. Joseph, and Denver stockyards companies, reflect the largest December countryward movement of stock and feeding cattle since 192.3, but the smallest annual and last-half year movement of record (192.0 to date). The outgo of calves was the largest for any December, last-half year or year of record, and that of sheep the largest for any December of record, but the smallest last-half year and yearly total since 192.1. THE SPRING P.IG SURVEY: The, results of the December1 pig survey released by the Bureau of Agricultural Economics, United States Department of Agriculture, were summarized by the department as follows: ''Although the survey shows the number of sows bred or to be bred for spring farrowing in 1931 to be 12 percent greater for the country as a whole, and 10 percent greater for the Corn Belt, than the number of sows which actually farrowed in the spring- 1930, when allowance is made for the usual spread between breeding intentions and actual farrowings, there is likely to be little change in the number of sows which will actually farrow in· the spring of 1931 compared to the spring of 1930. Past surveys have shown that the number of sows reported as bred in the fall were larger th an the number reported .. as farrowed the following spring, due tQ changes in intentions, death• losses and other causes.'' The percentages for the several states of this District and the United States, follow: Sows Farrowed Intention to Farrow Fall 1930 Compared to Spring 1931 Compared Fall 1929 Spr-ing 1930 to Spring 1930 Percent Percent P ercent Colorado.................................... II 7. 5 85.0 141. I Kansas...................................... 95.7 75.7 109.2 Missouri.... ................................ 91.3 74.6 102.3 Nebraska.................................... 103.8 32.5 108.6 New Mexico.............................. 48.0 54.5 159.1 Oklahoma.................................. 75.3 93.7 uo.4 Wyoming.................................. 177.6 43.3 102.2 United States............................ 97.4 56.3 u2.2 Meat Packing 1930 meat packing operations, as measured by the number of animals purchased for slaughter by packers at the six leading livestock markets in the Tenth District, showed the smallest yearly slaughter of cattle and the largest yearly slaughter of sheep on twelve years' records. The year's slaughter of calves was the smalles't since 192.2. and of hogs the smallest since 192.7. The December slaughter of meat animals was substantially larger for all classes than the November slaughter. Compared to December, 192.9 there were 0.1 percent fewer cattle, 17.0 percent fewer hogs, 10.8 percent more calves, and 6.4 percent more sheep purchased by packers in the final month this year than in the final month of 192.9. Kansas Ci tY·-··························· Omaha ...................................... St. J~seph .................................. Denver ...................................... Oklahoma City ........................ Wichita.-................................... Metal Mining Zinc ore and lead ore shipments from the Tristate District in the four weeks' and fifty-two weeks' periods ended December 2.7, 1930, were substantiaHy. smaller in both tonnage and value than in the corresponding four weeks and fifty-two weeks in 192.9. The combined value of both kinds of ore was approximately only half as large as in 1929, but above the 192.1 value when conditions were comparable to the present. Zinc ore tonnage in 1930 was 2.7.3 percent less and lead or-c tonnage 54.1 percent less than that of 192.9. Lead ore stocks were increased 12.,000 tons during the year. Zinc~ore. prices remained unchanged . at $2.6 per ton f0r.' the last ten weeks of 1930, and lead ore-prices -held -steady at $57.50 per ton for thirteen consecutive weeks, but in the se?cond week of January, 1931, declined $7.50 ·per ton to $50 per ton with producers reported refusing to part with concentrates at that price. These prices compare with $35 per ton for zinc ore and $75· per ton for lead ore in the final week of 19'29, and the first four weeks of I 930. The tonnage and value of both zmc and lead ores for the four weeks and fifty-two weeks ended December 2.7, 1930 with comp.arisons,. follow: FouR WEEKS ENDING December 27, 1930 ZINC ORE Tons Value Oklahoma.............. 21,6u $ 561,886 Kansas.................... 9,209 239,43:4 Missouri................ 236 6,136 $ 807,456 Total 1930............ 31,056 Total 19~9............ . 39,664 LEADORE Oldahoma .............. 1,487 Kansa 1,284 Missouri.. _............ 125 Total 1930............ Total 1929............ 2,896 6,369 FIFTY'-Two WEEKS ENDING December 27, 1930 Tons Value 285,526 $ 9,068,883 I 5o,945 4,&75,284 8,861 290,u6 1,468,412.. 445,332 612,a43 '$14,234,283 25,996,987 85,501 73,831 7,187 30,511 14,004 1,313 $ 1,976,300 $ 166,519 '$ 477,675 45,,828 99,9 27 $ 2,986,182 $ 925,020 84,862 8,897,668 According to estimates of the state commissioner- of mines, the state of-Colorad6 produced_ mote. gold,. copper· and zinc, and less silver and lead ore in 1930 than in 192.9, and the average price of each, except gold which was unchanged, was less . per unit in: 1930 than in. the. preceding year: Total value of· all ores produced in the state-in·. 1930 was $13,089-,600 compared to $15,2.93,343 for the preceding year. MOVEMENTS OF LIVESTOCK IN THE TENTH FEDERAL RESERVE DISTRICT PACKERS' PURCHASES , RECEIPTS STOCKERS AND FEEDERS Cattle Calves Hogs Sheep Cattle Hogs Hogs Sheep Cattle Calves Calves Slieep 1,802,435 364,185 * 3,201 ,082 2,015,693 252,418 82,719 629,335 74,915 798,334 208,655 •2/282,536· 1,518,225 1,484,501 120,257 868,674 854,410 66)4~ 2,297,059 2,032,549 3,36 2,875 3,4 10, 239 364,663 53, 233 ! 16;258 24,810 12,770. 1,446,432 1,634,171 85,883 248,103,' 297,~7 1 67,419 1,005,448. 1,259iou 459,356 100,452 11 7,997 24,541 253,5°5 87,726 512,322 2,q61,887 38S,621 505,169 290,782 809,496 56,909_ 20,730 244,393 u5,593 269,903 40,836 155,658 89,976 333,894 51,79°266,466 101,883 81,840 22,577 561,231 II 1,305 92,351 52 5,6o5 Year. 1930.................................. 4,762,320 890,096 Year 1929.................................. 4,828,791 814,708 Year 1928:................................. 4,961,896 787,972 Year 1927.................................. 5,272,676 827,830 Year 1926.................................. 5,425,272 884,136 December 1930........................ 4 12,397 76,835 N~vember 1930........................ 4r3,6o9 105,994 December 1929 ........................ 375,276 62,060 •Includes 1,186,402 hogs shipped direct to packers' < 9,417,836 9,285,085 10,779,320 8,875,189 10,759,756 8,835,717 8,264,750 7,640,649 7,967,737 7,8o9,37o 802,614 6o5,355 6or,928 598,841 922,027 475,080 yards in 1930. 1,370,663 217,671 1,422,956 172,145 r,5o9,o54 163,130 1,426,291 II3,769 1,478,542 80,584 139,730 26,292 193,003 4 2,475 16,552 98,317 124,673 175,814 198,170 174,356 169,617 7,779 6,577 9,448 2,178,691 2,809,183 2,66o,741 2,647i52I 2,286,642 167,789 325,617 85,47 2 2,305,410 2,39 1,599 2,379,944 2,814,718 2,993,768 194,379 148;b64 194,443 479,66o 481,946 482,158 578,299 646,521 40,u5 34,975 36)200 6,766,172 8,208,028 8,424,051 6,551, 295 5,964,080 5, 196,477 4,496,87 1 4,457,9 12 3,914,142 4,086,929 595,971 356,597 452, 145 718,131 254,186 335,247 7· THE MONTHLY REVIEW ========================================= The production and value of each class of ore is shown in the following: 1930 Ounces Gold ...................... Silver...................... 4,joo;ooo Pounds Copper·--··············· 9,000,0CX) Lead. 45,000,000 Zinc........................ 72,000,000 Total value............ 1929 Value f, 4,500,000 1,664,100 Value f, 1,188,000 2,497,5 00 3,240,000 f,13,089,6oo Ounces Value f, 4,417,358 4;397,377 Ounces 8,9o5,074 48,889,906 58,861,000 2,343,8oi Value f, 1,567,293 3,080,064 3,884,826 f,i 5,293,343 Petroleum Low and declining prices for crude oil and its refined products· have prevailed during the past year, and the petroleum industry in this District and throughout the country has faced the necessity of making adjustments to counteract the adverse affects of an accumulated surplus, continued large actual and potential production, and other disturbing factors. The acuteness of the situation has been shown clearly by the difficulties encountered in the so far, only partially successful attempts to find markets for the production of several thousand small wells in southern Kansas and northern Oklahoma, whose previous marketing arrangements were terminated at the end of 1930. Some progress toward curtailing oil production is indicated. December production in this District is estimated by the American Petroleum Institute ·at 658,550 barrels, the lowest daily average reported for any month since March 1926, and 172,450 barrels or 20.2 percent less than the December, 1929 daily average, and, according to preliminary estimates, the five oil producing states in the Tenth District produced less oil in 1930 than in any year since 1926. The 1930 production of the five states totaled 285,411,000 barrels COIJ?pared to 319,756,000 barrels produced in 1929, each of the states except New Mexico reporting less oil produced in 1930 than in the preceding year. The production figures for the five oil producing states of dtei District ·for the· periods under review: GROSS PRODUCTION *Dec. 1930 Nov. 1930 Dec. 1929 *Year 1930 Barrels Barrels Barrels Barrels Oklahoma.................. 14,238,000 15,094,000 .20,125,ooo . 214,003,ooo Kansas ... -................... 3, 273,000 3,.245,ooo 3,477,000 41~733,000 Wyoming.................. 1,505,000 1,445,000 1,6u,ooo 17,887,000 Colorado-·····-·····-···· 1"27,000 131,000 166,000 1,620,000 New Mexico....... - ..... "I,Z72,ooo 1,128,000 248,000 10,168,000 Year 1929 Barrels 253,704,000 42,875,000 19,190,000 2,298,000 1,689,000 Total.. ........................ 20,415,000 21,043,000 25,627,000 285,4u,ooo 319,756,000 *December estimated, American Petroleum Institute. .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 Daily Runs Opera:ting Crude Oil to Stills January 1, 1931............................................................ 55 259,000 December 1, 1930.... _ _ _ _ _ _ _ _ 52 265,050 January 1, 1930......................................... _ _ _ _ 56 287,6oo A year-end survey of .field operations discloses that although there were 109 or 2.2 percent fewerwells completed in 1930 than in 1929, the daily average new production from wells completed totaled 6,980,739 barrels, an increase .of 5,583,535 barrels or approximately 400 percent. A decline in field activity is shown in that there were 1,034 rigs up and wells drilling at the close of 1930, compared to 1,665 rigs up and wells d~illing on the corresponding date in 1929. The number of wells drilling at the end of the year was the smallest month-end total on records covering thirteen years. The summary follows: Wells Barrels Daily Dry Completed New Production Wells Oklahoma........................ 199 441,919 72 Kansa.,____ _ 70 21,686 28 Wyoming........................ 14 3,037 6 Colorado.......................... 5 149 New Mexico.................... 22 163,074 2 December 1930.............. November 1930.............. December L929·---········· Year 1930.. Year 1929 ........................ 310 296 389 4,9 14 5,023 629,865 630,671 138,224 6,98o,739 1,397, 204 109 96 142 1,529 1,874 Gas Rigs-Wells Wells Drilling 32 56o 186 17 I 117 2 92 79 53 1,034 1,q8 1,665 48 40 6o8 447 Bituminous Coal Production of bituminous coal in the six coal producing states of the Tenth District in 1930 totaled 23,872,000 tons, the smallest tonnage for any year since 1921 when production was curtailed by strikes. Compared to 1929 there was a decrease of 6, 157,000 tons or 20. 5 percent less coal being mined in each of the six states in 1930 than in the preceding year. December production totaled 2,455,000 tons, 138,000 tons or 6.o percent more than was produced in November, but 615,000 tons or 20.0 percent less than was produced in December, 1929. The month's total was, with the exception of October, the largest for any month since last January, but the smallest for any December since 1921. The December and yearly output by states follows: *Dec. 1930 Nov. 1930 Dec. 1929 *Year 1930 Year 1929 Tons Tons Tons Tons Tons Colorado .................... 887,000 854,000 1,102,000 8,054,000 9,921,000 Kansas ...................... 292,000 284,000 2,373,000 2,976,000 234,000 Missouri .................... 309,000 280,000 445,000 . 3,425,000 4,030,000 New Mexico.............. 177,000 185,000 224,000 1,862,000 2,623,000 Oklahoma .................. 239,000 240,000 402,000 2,5u,ooo 3,774,000 Wyoming............ _.... 551,000 613,000 5,647,000 6,705,000 524,000 Total.. ........................ 2,455,000 2,317,000 3,070,000 23,872,000 30,029,000 *December estimated. United States production of soft coal for the coal year to January 3 (approximately 234 working days) was 339,813,000 net tons, the smallest for any like period since the 1921-22 coal year, and compares with 398,916,000 net tons mined -in the like period last year . Cement Production and shipments of Portland cement at mills in the Tenth District during 1930 were slightly smaller than in 1929, but larger than in 1928. December production and shipments were both less than for any month since January, and were 30.8 percent and 32.3 percent, respectively, smaller than in December, 1929. The Bureau of Mines estimates for this District, follow: December 1930............................ _ _ __ November 1930.....·-···················································· December 1929 ........................................................... . Year 1930............................................................ : ....... . Year 1929 ................· - - - - - - - - - - Production Barrels 734,000 783,000 1,060,000 14,853,000 I 5,088,000 Shipments Barrels 413,000 750,000 610,000 14,332,000 15,033,000 8 THE MoNTHLY REVIEW VOLUME OF PRINCIPAL TRANSACTIONS HANDLED BY THE FEDERAL RESERVE BANK OF KANSAS CITY DURING THE YEARS 1930 and 1929 1929 1930 NUMBER Notes discounted or rediscounted for member banks. _ _ _ _ _ _ _ _ _ _ _ __ 29,74 2 Currency received and counted .........................·----------···················· 66,563,635 Coin received and counted....................................·----···················------ 66,617,533 Checks handled........................................................ _ _ _ _ __ 69,881,000 Collection items handled .. _ _ _ __ 3 16,593 134, 275 Transfers of Funds .......· - - - - · · · · · · · · · · · · · · · · · · · · · · - - - - - - - - - · - - - U. S. Government Coupons handleu.-- - - · · - - - - - - · - - - - - 1,065,066 U. S. Securities received from Treasury Department._····················----···················· 53,590 131,204 U.S. Securities returned to Treasury Department._···························----················ U. S. Securities issued, redeemed, canceled or exchanged as Fiscal Agent of the United 135,357 States .................· - - - - - - - ····························································· · · · - - - 326,781 Custody transactions ....................· - - - - · · ·········································································· Mail handled and value of registered mail... ................................................... _ _ _ __ 3,451,625 Purchase and sale of Government Securities.......................................................................... 4,938 AMOUNT '/, NUMBER AMOUNT 290,628,489.65 314,560,708.00 12,286,876.00 10,430,350,000.oo 257,938,231.21 7,486,269,834.I I 17, 155,345• 00 92,104,857.63 I 54,683,402.04 30,643 66,691,598 67,038,107 72,155,000 326,828 149,439 1,152,151 101,473 178,330 '/, 1,673,244,949.53 3 15,847,389.00 I 2,966,024.00 I 2,091,899,000.00 298,309,928.40 6,974,73o,653.71 19,919,320.00 166,508,331.86 213,888,492.35 192,056,046.75 286,695,154.72 987,188,098.97 2 I 6,014,073.02 221,716 338,337 343,143,866.00 3,556,955 1,384, 124,4 29•35 4,571 418,055,956.03 I 92 , 156,593.75 Business Conditions in the United States By the Federal Reserve Board Production and factory employment declined further in December. Wholesale prices decreased during the first half of the month but thereafter were generally steadier. Conditions in the money market remained easy and in January money rates reached new low levels. PRODUCTION: Industrial production was further reduced during December, and the Federal Reserve Board's index, which makes allowance for usual seasonal changes, showed a decline of over two percent. Output of steel and iron, textiles, petroleum, cement, and copper was substantially curtailed. Activity in meat packing plants and at anthracite mines increased in December, and in the automobile industry there was an increase in output reflecting the introduction of new models. After the turn of the year, automobile output increased further, and steel plants were more active. Construction contracts awarded during December were in about the same volume as in November, according to reports of the F. W. Dodge Corporation. There were slight declines, partly seasonal in nature, in contracts for residenti al and commercial construction, while public works and utility awards increased somewhat. EMPLOYMENT AND WAGE PAYMENTS: Employment in manufacturing industries was reduced further by 2.5 percent between the middle of ovember and middle of December, and factory payrolls also declined. The largest reductions in working forces were in the canning, lumber, steel, and wearing apparel industries. There was little change in employment in railroad car shops, and in cotton and silk mills, while in the automobile, meat packing, and paper and printing industries working forces were increased slightly. In early January, following year end inventory periods, reports indicate increased employment in certain industries, particularly automobiles, steel and railroads. DISTRIBUTION: Sales of department stores increased in December by slightly less than the amount which is usual for the holiday season, according to preliminary reports to the Federal Reserve banks. In December, as in earlier months of the year, the volume of sales probably reflected the influence of declining retail prices. Distribution of commodities by freight showed a further decline for the month of December as a whole. Value of American exports to foreign countries was smaller in December than in November and approximately 35 percent below that of December, 1929, the decrease reflecting, in part, the decline in wholesale prices. WHOLESALE PRICES: Wholesale prices of commodities declined sharply in the first half of December while in the following four weeks average fluctuations were relatively small. For the month of D ecember as whole, there were large decreases in prices of corn, hogs, cotton, hides and lumber, while prices of wheat, beef, and silks averaged somewhat higher than in November. During the first two weeks in January prices of corn, sugar, and silk increased, and the price of wheat in American markets remained fairly stable. Silver prices reached new low levels. a BANK CREDIT AND MONEY RATES: Loans and investmen ts of reporting member banks declined in the four week period ending January 14 reflecting liquidation of security loans, as well as a reduction in all other loans and in investmen ts. Changes in the position of reserve banks in recent weeks reflected largely changes in the demand for currency. In December this demand increased more than is usual for the season owing to the withdrawal of cash by banks and by the public in districts where there were important bank failures. In the two weeks after Christmas the return flow of currency from circulation was smaller than the usual seasonal amount and the result was that money in circulation, which during the larger part of 1930 had been in considerably smaller volume than in 1929, in January, 1931 was above the level of a year ago. In the following two weeks the return flow of currency was somewhat larger than usual, indicating a return of part of the extra currency which had been called into use in December. Money rates in the open market continued at low levels during December, and declined further in the first half of January. The discount rate at the Federal Reserve Bank of New York was reduced to two percent on December 24, and in the following three weeks the rate at the Federal Reserve Bank of Boston was reduced to 2,½ percent and rates at the Federal Reserve Bank of Cleveland St. Louis, Chicago, Atlanta, and San Francisco to three percent.
@FedFRASER