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THE MONTHLY REVIEW Of Agricultural, Industrial, Trade and Financial Conditions in the Tenth Federal Reserve District FEDERAL Vol. 17 RESERVE KANSAS CITY, BANK Mo., STIMATES of the United States Department of Agricul- E ture showed the combined harvested acreage and composite yield of farm crops in this District in 1931 greater than that for 1930, but the farm value of all crops produced, based on December 1 prices, declined 28.5 percent as compared to 1930, and 51.4 percent as compared to 1929. Winter wheat production set a new record, and yields of barley, grain sorghums, broom corn, cotton, sweet potatoes, tobacco, and all varieties of fruit exceeded those of 1930. The production of corn, oats, spring wheat, tame and wild hay, dry beans, sugar beets, and white potatoes was somewhat below that of the preceding year. All states in the District, except Wyoming, reported a reduction in the acreage sown to winter wheat in the fall of 1931 as compared to the fall of 1930. The Kansas acreage was reduced 15 percent and that of the other five states from 10 to 25 percent. The reduction for the United States was 12 percent. This District produced less flour, petroleum, bituminous coal, and cement, and shipped less zinc ore and lead ore in 1931 than in 1930. Building activity declined to the lowest level in recent years. The volume of department store trade in 1931 was generally satisfactory/ but" thirty-three department stores in the District reported their dollar sales declined 13.3 percent for the year. Sales at wholesale, as measured by the com bincd dollar sales of five reporting lines, declined 21.1 percent. Unusually large receipts of wheat and small receipts of corn, oats, rye, barley, and kafir characterized the grain markets and light receipts of cattle, calves, and horses and mules, and heavy receipts of sheep characterized the livestock markets. Meat packing operations were closely in line with livestock receipts. Prices of all Tenth District commodities declined during the year. Wheat established a low price record at the Kansas City market on October 5. In the same month corn sold at the lowest price since 1901, and oats at the lowest price since 1900. Top hogs sold down to $3.85 in December, the lowest since 1899, and fat lambs at 1,5.25 were the lowest in twenty years. Cattle prices fluctuated widely and at times were also the lowest in twenty years. Prices of butter, eggs, and poultry declined in December and the forepart of January, 1932, and the midJanuary quotations were the lowest for that date in many years. Mid-year prices of crude oil were the lowest of record, and zinc ore, lead ore, coal, and cement prices also declined. Flour and millfeed prices fluctuated in sympathy with grain prices and closed the year somewhat lower. A 9 percent increase in the 1931 pig crop, a 5 percent decrease in the number of cattle, and a 14 percent increase in the OF FEBRUARY KANSAS CITY No. 1, 1932 2 BUSINESS IN THE TENTH FEDERAL RESERVE DISTRICT Percentage of Increase, or Decrease (-), for December 1931 over November 1931 and December 1930, and for the Year 1931 over the Year 1930. December 1931 Yea.r 1931 Compared to Compared to Banking Noy-, 1931 Dec. 1930 Year 1930 Payments by check, 29 cities.·--··-··-···· - 1.5 ~8.6 -24.7 Federal Reserve Bank clearings.........·-··2.5 ~3.2 -18.9 Business failures, number.....·-····-············ 22.6 35.6 - 0.5 Bm1iness failures, liabilities..............- ........ I 11 .o 79.6 - 9·9 Savings deposits, 49 selected bank■.-....... - 1.8 - 5.9 Saving, account,, 48 selected bank■ -...... 0.1 - 1.0 Distribution Wholesalers' sales, 5 lines combined ....... . Retailers' sales, 33 department stores...... L~m~er sales, 167. retail yards ............ _... . Life insurance, wntten. ____ ......................... -34.7 36.'l Construction Building contracts a.warded, value·---·· ... Building permits in 18 cities, value .......... 83.8 II.8 Production Flour.-.-...... _............................................. . Crude petroleum._................. _ _ __ Soft coaL ... ---····-········-····· ... ·...... . Zinc ore (shipped) Tristate District.. ...... Lead ore (shipped) Tristate District........ Grain receipts, 5 ma.rkets WheaL-·-··· .. ·· ............................................. Corn .......·-··-·············· ... ··· ... ·.. ·... ·......._...... .. Oats.---·-···............. -············-······-.. - .......... Rye .................... - ......................................... . Barley·-··········............................................ Kafir..............- ................- ........................... . Livestock receipts, 6 markets Cattle .... -··-····-···--· ...·-.. --.................. - .... .. Calves·-········ ....... - ..- ............................. _..... I-Iogs ................ -····-··· ...................- ... ·····-···· Sheep .. -······-····-··..·····................................. Horses and mules ........................... ·-····· .. ··· Meat packing, 6 cities Cattle .................................. - ........................ Calves.......................................... - ......... - .... . I-logs ............................................................ _ Sheep_ ...... -·······•···-··· .. - ............ __ .._._ .... Stocker and feeder shipment■, 4 marl.:ets Cattle ........-··--···.. -· ... - ..- .. --.................... Calves.........._................. ·-····-····-················ Hogs.·-··-·· .. ····-··············· ..····-···..··· ...·....... .. Sheep .. - ..... - ............................................... . - 6.3 53-7 -14.4 'l.6 6.2 9.3 - 8.8 -3 2 .9 -21.I - 13.3 ~7.2 - -14.-4 -25.2 ~o.o 1.9 -49.6 -4l.9 - 6.I 6.9 ~3-9 -47.7 -55.9 - 5.9 -13.1 ~1.5 -47.8 -4 1.5 "'.' -5.'l 5.5 - 1.6 -18.4 -35.9 -55.2 -13.8 -86.1 - 7.8 -80.9 -72.6 -65.6 -61.0 37.7 21.0 ~4.4 -28.4 -18.0 6.9 1 4.9 4 1 •5 -79.2 -69-4 -43.6 ~O.!. I.4 -10.6 -31.1 -4.3 7.9 -29.2 - 18.'l -53.I -63.4 -5'l.2 -37,I -30.3 -37.7 -38.5 5.9 -17.s 0.5 28.2 17.4 -69.3 -33.5 -39.5 -4.6 -33. 2 - 3'1,6 - 3.2 -l'l.9 -14.8 -12.4 17•4 number of sheep and lambs on feed in the United States on January 1, 1932, as compared to January 1, 193r, arc indicated byrecentreportsofthcUnitedStatesDepartmentof Agriculture. This Copy Released For Publication In Afternoon Newspapers January 30. 2 THE MONTHLY REVIEW VOLUME OF PRINCIPAL TRANSACTIONS HANDLED BY THE FEDERAL RESERVE BANK OF DURING THE YEARS 1930 AND 1931 1931 Amount Number 'I, 266,449,894.98 Notes discounted or rediscounted for member banks·---······························································· 40,624 Currency received and counted ........................................................................... ................................ 58,563,679 260,343,100.00 l l ,036,680.00 Coin received and counted ....................... ·----······································································· 74,938,380 8,46 I ,469,000.00 Checks handled·----·······-···················································································································· 64,412,000 239,015,625.54 Collection items handled..·--··············································································································· 35.3,272 Transfers of funds···-·······:......... .......................................................................................................... 123,408 5,376,060,43 I .6 I l 5,156,663.00 U. S. Government Coupons handled·---························································································· 980,610 238,770,460.68 U.S. Securities received from Treasury Department.................................................................... 78,315 174,o44,051.9 1 U. S. Securities returned to Treasury Department ...... -............... ................................................. 133,327 U.S. Securities issued, redeemed, canceled or exchanged as Fiscal Agent of the United States 159,194 346,730,643.50 463,516,830.80 ·Custody transactions._........................................................................................................................ 342,873 1,266,190,767.26 Mail handled and value of registered maiL---··············································································· 3,401,030 Purchase and sale of Government Securities (for others).................... .......................................... 4,896 24,538,900.00 Financial A comparison of the weekly condition statements of fifty-four member banks in selected cities as of December 30, 1931, and December 31, 1930, shows these banks reduced their loans and discounts 20.3 percent during 1931. Loans secured by stocks and bonds were reduced 17.5 percent and "all other" loans 21.3 percent. The banks increased their investments in United States Government securities 28.1 percent, but, due to a reduction of 10.1 percent in investments in other bonds, stocks, and securities, total investments increased only 5.9 percent. Net demand deposits declined 18.1 percent and time deposits 2.9 percent in the fifty-two weeks. Combined statements of the fifty-four banks are here shown for the two dates of comparison: Dec. 30, 1931 Loans and investments-total.. ............ ....... . Lo,ms and discounts-total.----····-············· Secured by stocks and bonds ................... . All other loans and discounts ................... . In vestments-total. ___ ········· ........................ . U. S. securities ........................................... . Other bonds, sto-:ks, and securities......... . Reserve with F. R. bank - ............................ . Net demand deposits ..................................... . Time deposits ................................................. . Government deposits...................................... $594,o55,ooo 325,634,000 89,066,000 236,618,000 268,371,000 136,246,000 132,125,000 46,025,000 389,99o,ooc 184,866,000 2,751,000 Dec. 31. 1930 '1,662,206,000 408,816,000 108,000,000 300,816,000 253,390,000 106,349,000 147,041,000 56,753,000 476,2·84,000 190,397,000 2,099,000 SAVINGS: Reports of forty-nine banks and savings institutions in leading cities of this District as of January 1, 1932, showed savings deposits decreased 1.8 percent during December and 5.9 percent as compared to January 1, 1931. Forty-eight banks reported a slight increase in the number of savings accounts for the month, and a I percent decrease for the year. The amount of savings deposits and the number of savings accounts as reported for the three dates of comparison: Savings Accounts Savings Deposits 48 Banks 49 Banks 414,323 '/,II9,389,056 January I, 1932·---·····--···························. ······ 413,809 121,614,483 December 1, 1931.............· - - - - - · ········· 418,671 126,831,601 January 1, 1931. ____ ··• ···································· FEDERAL RESERVE BANK OPERATIONS: Year-end condition statements of the Federal Reserve Bank of Kansas City and branches at Omaha, Denver, and Oklahoma City show '$27,725,836 of bills rediscounted for member banks on December 31, 1931, as compared to $15,041 ,747 at the end of 1930. Total earning assets at the end of the year were only 1.9 percent less than on December 31, 1930, the increase in loans to member banks being offset by reductions in holdings of acceptances and Unitftd States Government securities. KANSAS CITY 1930 Number 29,742 Amount 'I, 66,563,635 66,617,533 69,881,000 316,593 134, 275 1,065,066 53,59° 131,204 135,357 326,781 3,451,625 4,689 290,628,489.65 314,560,708.00 l 2,286,876.00 10,430,350,000.oo 257,938,231.21 7,486,269,834.II 17, 155,345.oo 92,104,857.63 I 54,683,402.04 192,056,046.75 286,695,154.72 987,188,098.97 20,479,573- 02 Federal reserve note circulation expanded 20.9 percent. There was a decline of 14.1 percent in member bank reserve deposits. Princi pal resource and liability items of this bank and branches as of December 31, 1931, and December 31, 1930: Dec. 31, 1930 Dec. 31, 1931 Gold reserves.................................................... '/, 97,j71,138 '/, 9 2,371,553 Reserves other than gold._............................. 7,665,279 7, 199,856 Total reserves ...................................... ._...... ... 105,436,417 99,57 1,4°9 Bills discounted._..................................... ....... 27,725,836 15,041,747 Bills purchased ..............._............... .......... ..... 11,666,126 12,970,649 31,6u,500 U. S. securities ................. ·-·······················--.... 18,707,600 Fed. Intermediate Credit Bank deben tures 400,coo Total bills and securities ..... _.......................... 58,499,561 59,623,896 Total resources................................................ <,' 4,4 r6, 163 199,078,093 F. R. notes in circulation.............................. lL':,7 r 1,48 5 68,424,180 Member banks' reserve deposits........... ...... 75 ,:228,701 87,705,o66 The discount rate of the Federal Reserve Ba!lk of Kansas City, on all classes of paper and all maturities, remained unchange ~ at 3½ per-:ent. Business Failures The reports of R. G. Dun and Company showed that although there was a slightly smaller number of business insolvencies in this District in 1931 than in 1930, the number was, with that exception, the largest for any of the twelve years the reports have been compiled. The amount of liabilities involved declined 9.9 percent as compared to the preceding year, but, with that exception, was the largest reported for any year since 192+ There were more failures in December than in any month in twelve years. The amount of liabilities, although the largest for any December since 1927 when they totaled $7,028,228, were exceeded in May this year and occasionally in preceding years. Commercial failures as reported by R. G. Dun and Company: TENTH DISTRICT December 1931 ................... . November 1931·-- ··············· December 1930................... . Twelve months 1931.. ....... . Twelve months 1930......... . Number 179 146 132 1,534 1,542 . Liabilities '/, 3,416, 195 1,619,202 1,902,285 26,081,104 28,945,727 UNITED STATES Number Liabilities 2,758 '/, 73,212,950 2,195 60,659,612 2,525 83,683,361 28,285 736,309,002 26,355 668,283,802 Payments By Check Reports from banks in twenty-nine leading cities of the Tenth District indicate total payments made by check in 1931 were 24.7 percent less than in the preceding year, 33 percent less than in 1929, and the smallest amount reported for any post -war year. Every reporting city showed a decrease for 1931 as compared to any of the five preceding years. t. In the four weeks' period ended December 30, total debits were 1.5 percent less than in the preceding four weeks ended December 2, and 28.6 percent less than in the corresponding four weeks ended December 31, 1930. THE PAYMENTS BY CHECK FIFTY-Two WEEKS ENDED Dec. 30, 1931 Dec. 31, 1930 'f, 126,513,000 I 50,66 I ,ooo Albuquerque, N. M.·-············· '/, 48,825,000 72,642,000 Atchison, Kani;· ·--··-··············· Bartlesville, Okla ..................... 207,199,000 3 13,644,000 85,11'2,000 67,334,000 Casper, Wyo.·---····················· Cheyenne, Wyo .....·-················ 74,384,000 78,870,000 Colorado Springs, Colo .. -....... 201,916,000 168,379,000 Denver, Colo ........................... I ,68 I ,223,000 2,058,222,000 Enid, Okla .............................. 133,77 1,000 203,552,000 37,664,000 Fremont, Nebr.·-····················· 45,797,000 Grand Junction, Colo ............. 31,996,000 38,242,000 Guthrie, Okla .._....................... 23,615,000 37,186,000 Hutchinson, Kans ................... 233,53 2,000 166,067,000 Independence, Kans ............... 74,698,000 1'29, 239,000 Joplin, Mo ............................... 90,666,000 130,360,000 Kansas City, Kans ................. l 84, 7 I 6,000 240,492,000 Kansas City, Mo ..................... 3,840,444,000 4,985,655,000 Lawrence, Kans ....................... 50,361,000 57,679,000 346,774,000 406,309,000 Lincoln, Nebr.·--····················· Muskogee, Okla .. - ................... 93,826,000 125,851,000 Oklahoma City, Okla ............. I ,038, 740,000 I ,4 73,440,000 Okmulgee, Okla ....................... 39,462,000 67,472,000 Omaha, Nebr........................... l ,996,930,000 2,506,576,000 Pittsburg, Kans ....................... 51,914,000 63,300,000 Pueblo, Colo .. - ......................... 217,415,000 252, l 50,000 II3,732,ooo 151,638,000 Salina, Kans.·-········•················ 412,092,000 562,704,000 St. Joseph, Mo.·-····················· 202,819,000 Topeka, Kans ...·-····················· 245,894,000 l ,079,074,000 1,779,805,000 Tulsa, Okla.·--························· Wichita, Kans ......................... 541,092,000 743,071,000 Total 29 cities, 52 weeks ........ 1, 13,141,72~,ooo Total 29 cities, 4 weeks ...... 890,705,000 United States, 52 weeks.......... 513,078,571,000 United States, 4 weeks..·- ··-· 33,850,898,000 '$ 17,441,ou,ooo 1/247,839,000 7°2,993,426,000 49,015,672,000 1'1oNTHLY Percent Chang~ -16.0 -3:1.8 -33.9 ~0.9 - 5.7 -16.6 -18.3 -34.3 -17.8 -16.3 -36.5 -28.9 -42.2 -3o.4 -23.2 -23.0 -12.7 -14.7 -25.4 -29.5 -41.5 -20.3 -18.0 -13.8 --25.0 -26.8 - 17,5 -39.4 -27.2 -24.7 -28.6 -27.0 -3o.9 Federal Reserve Bank Check Collections This bank and branches handled 7.8 percent fewer checks, representing 18.9 percent fewer dollars, in 1931 than in the preceding year. A smaller number of items were handled during 1931 than in any year since 1924, and the aggregate amount was the smallest reported for any of the past nine years. Collections in December were larger as to the number and amount of items handled than in the preceding month, but both items showed substantial declines as compared to December, 1930. The summary of reserve bank clearings follows: REvrnw 3 Each of the seven states reported sales in 1931 as somewhat less than the preceding year, with the combined volume registering a decline of 14.4 percent. Sales of new paid-for ordinary life insurance, as reported by the Life Insurance Research Bureau, in thousands of dollars, thousands omitted: Colorado._ ...........Kansas .................. Missouri ................ Nebraska .............. New Mexico.---··· Oklahoma. __......... Wyoming.............. Seven states·--····· United States ..·-··· Dec. 1931 Nov. 1931 Dec. 1930 '$ 7,829 'f, 6,178 'f, 8,030 8,326 8,457 5,94 1 18,971 23,630 26,958 5,060 6,247 8,349 1,225 889 563 2 9,290 7,4 9 5,777 1,020 1,142 7 13 Year 1931 1, 73, 177 82,912 250,140 72,854 9,260 77,487 10,313 Year1930 'I, 81,386 97,764 273,202 89,788 12,922 106,816 10,908 'I, 59,99 2 795,64 2 '$ 576,143 8,048,347 'f, 672,786 'f, 58,829 'f, 43,203 799,97 1 629,760 9, 279,385 Trade RETAIL: The dollar volume of retail trade in the District, during December, as shown by sales of thirty-three reporting department stores, was 53.8 percent greater than the volume reported for the previous month, an increase slightly in excess of the average seasonal upturn in December. Compared to December last year, sales declined 20 percent, carrying the dollar s:•tles for the year 1931 to 13.3 percent below those of 1930. Making allowance for price declines in 1931, these figures would indicate a comparable physical volume of merchandise moved into consumption during December and the year. Stocks were reduced 19 percent between November 30 and December 31 compared to a five year average reduction for the period of 20 percent. There was 13.7 percent less merchandise on hand December 31, 1931, than on December 31, 1930. December collections were equal to 37.b percent of accounts outstanding November 30 compared to 36.8 percent in November, and 39.6 percent in December, 1930. Life Insurance WHOLESALE: Reports from wholesalers in the District disclose the following percentages of decrease in the dollar volume of their annual sales this year as compared to last: Drygoods, 20.3; groceries, 10.9; hardware, 29.5; furniture, 37; and drugs, 20.2. The decrease for all five lines combined was 21.1 percent. Wholesalers of hardware and drugs reported their December sales as 5.7 and 0.1 percent, respectively, larger than in the preceding month, but drygoods, groceries, and furniture reported their sales as 32.9, 2. 5, and 0.9 percent smaller. All five lines reported their sales in December this year v..-ere substantially below those of December, 1930. Sales of new paid-for ordinary life insurance in the seven states whose areas or parts thereof form the Tenth District, as reported by the Life Insurance Research Bureau, increased 36.2 percent in December as compared to November but were 1.9 percent less than in December, 1931. Each of the five lines reported year-end inventories as sma1ler than one month or one year earlier. The amount of accounts outstanding as of December 31 was also smaller for all lines than at the close of the preceding month or the corresponding month last year. December·-······· November .... - .. Year.................. ITEMS 1931 1930 6,301,080 5,393, 12 4 4,878,110 5,420,092 64,4u,708 69,880,354 Reporting Stores Dry GoodS-............. Groceries ___ ............... Hardware.-............... Furniture.-................. Drugs.......................... 5 5 9 5 5 AMOUNT 1931 1930 'f, 649,039,000 'f, 845,141 ,ooo 808,388,000 633,278,000 8,46 I ,469,000 I 0,430,3 50,000 WHOLESALE TRADE IN THE TENTH FEDERAL RESERVE DISTRICT COLLECTIONS SALES OUTSTANDING Dec. 1931 compared to Dec. 1931 compared to Dec. 31, 1931 compared to Nov. 1931 Dec. 1930 Nov. 1931 Dec. 1930 Nov. 30, 1931 Dec. 31, 1930 8.4 -Zl,4 -z2.3 -z6.4 -32.9 -31.9 10.4 - 1.4 - 2.5 -II.9 - 9.3 - 3.7 - 7.3 -12.8 12.5 -z9.8 5.7 .-z7.3 I.I -51.0 -13.0 -41.9 - 0.9 -54.5 0,1 -24.8 8.9 -22.8 -7-5 -9.9 STOCKS Dec. 31, 1931 compared to Nov. 30, 1931 Dec. 31, 1930 -z6.1 -14.5 - 5.6 - 8.2 - 1.3 -17.1 - 8.5 -23.8 -14.4 - 8.o THE MONTHLY REVIEW 4 Stores Reporting ~ Kansas City·-·-· 4 Denver--··- - 5 Oklahoma City_ 3 Lincoln·--···-·- 2 Topeka_..____ J Tulsa----··-·- 3 Wichita______ 3 Other cities .. _._ 10 RETAIL TRADE AT 33 DEPARTMENT STORES SALl!.S STocu (RETAIL) Dec. 1931 Year 1931 Dec. 31, 1931 compared to compared to compared to Dec. 1930 Year 1930 Nov. 30, 1931 Dec.31,1930 -'.lo.4 -12.6 -19.1 - 9.5 -15.5 -10.1 -19.3 -n.6 -'.28.9 -'.21.o -18.7 -17.5 -19.7 - 9.4 -19.5 -16.6 -16.2 -14.7 -12.1 -18.7 -18.0 -18.1 -22.6 -16.1 -17.6 -12.5 -'.lI.8 -12.7 -17.9 -19.1 IN THE TENTH FEDERAL RESERVE DISTRICT Accou:ins RzcEIVABLB COLLECTIONS STOCK. TUR.NOVEil Dec. 31, 1931 Dec. 1931 Dec. Year compared to compared to 1931 1930 1931 1930 Nov. 30, 1931 Dec.31,1930 Nov. 1931 Dec. 1930 - 1.3 -16.4 .33 .38 2.59 2.61 27.6 -13.7 .40 .42 2.93 2.89 18.3 -10.3 4.4 -13.5 -14.6 -26.7 .40 .44 3.04 3.46 17.9 -16.3 II.8 - I,5 .36 .38 3.16 2.95 4.7 -13.6 .37 .34 2.54 2.29 20.0 -17.0 10.7 -17.7 8.4 -IJ.9 .47 .48 4.09 4.09 17.2 -12.4 17.1 -14.6 - 2.7 -'.20,8 .35 .37 2.76 2.96 9.6 - 5.7 7.8 -13.4 Total._ ______ .. _ 33 -'.lo.o -13.3 -19.0 -13.7 .37 .40 2.83 2.91 16.7 -II.9 I.7 NOTE: Percentage of collections in December on accounts November 30, all stores reporting 37.5. Collections aame month last year 39.6. Building There was a substantial decline in building operations in this District in 1931. The building departments of eighteen reporting cities issued fewer permits in 1931 than in any year of the twelve in which reports have been received from these cities, and the estimated cost of construction was below that reported for any other year in that period. For the first time since 1926 the annual value of building contracts awarded in this District, as reported by the F. W. Dodge Corporation, totaled less than $200,000,000, and the 1931 total of $137,371,628 was 49.6 percent below that of 1930. Residential construction declined 45.4 percent during the year. The F. W. Dodge Corporation report: TOTAL BUILDING CONTRACTS AWARDED Tt:XTH DISTllICT UNITED STATES 1931 1930 1931 1930 Dccember.-.-- t, 8,108,488 t, 12,897,799 t, 136,851,600 '$ 249,435,500 November.. ___. 253,573,tOO 4,4II,246 JI,oo4,379 151,195,900 137,371,628 272,616,926 3,109,581,600 4,526,409,100 Year··--········RESIDENTIAL CONTRACTS AWARDED TEKTJf DISTllICT U!UTED ST.A.TES 1931 1930 1931 1930 December..·-···· '$ 1,402,871 J 4,186,167 t, 36,163,500 '$ 70,9u,100 November_ .. __ 1,283,896 2,588,238 45,290,400 80,781,900 Year.·---··-······ 23,143,349 42,384,447 8u,388,700 1,099,312,500 Building operations in the _ eighteen cities and the Tenth District increased somewhat in December as compared to November, but were under a year ago. f.~ Lumber ffRETAIL:"':-Making no allowance for differences in inventory dates, sales of lumber at 167 retail yards declined 27.2 percent and dollar sales of all materials 35.9 percent in 1931 as com- Albuqaerque, N. M ....·-···-·····-······-·-····· .. Cheyenne, Wyo ---·····-·--·--·· Colorado Spring,, Colo,-----·-·-·············-····--·-···· Denver, Colo. ·······-·--·-···-·······-··--·-· Hutchinson, Kans·--··-···-···--····-··-····--·····-·······-··· Joplin, Mo. __ Kansu City, Kan•·--····-·--······· Kansas City, Mo._·--···-·--··-·-·············: ..._.... _.....- .... Lincoln, Nebr·--·-····---··---······-····-·············· Oklahomll City, Okla. __ ---···--·--··-···· Omaha, Nebr·-····· ·---···--···············-···· Pueblo, Colo,-----·-----·· Salina, Kans,----···· ······--··----·······-··· St. Joseph, Mo.·----··· Shawnee, Oki ···-·············--··· Topeka, Kan,. ___ .................---· Tulsa, Okla._ _. Wichita, Kans·--············---·-·-···· .. ·······-····-.. ····" ... _.. Total 18 cities__ ...... _.:........... _.......... pared to 1930. December sales of lumber were 34.7 percent under the preceding month and 32.9 percent less than a year ago. Stocks of lumber were further reduced in December and on the last day of the month were 9.4 percent under one year ago. The December volume of business at reporting retail yards is shown herewith in percentages of decrease: December 1931 Compared to November 1931 December 1930 5ales of lumber, board feet.·-·········-···········.......... -34.7 -3:1.9 Sales of all materials, dollars.·-··-·····-·····-• ········· -33.0 -37.8 Stocks of lumber, board feet·---····-···-·············· - 1.5 - 9.4 Outstandings, end of month ......... _ _ _ _ -12.9 -24.4 According to the combined reports of 602 mills to the National Lumber Manufacturers Association, lumber production in the United States in 1931 was only 38 percent of normal and 67 percent as large as last year. Shipments and orders received exceeded production during the year, both equalling 77 percent of last year's totals. Agriculture Temperatures were moderate in December but rains and and snows retarded farm work and delayed corn husking. A larger than normal acreage of corn remained unharvested at the close of the year. The condition of wheat is generally good, although reports indicate an unsatisfactory condition in sume sections of western Kansas. Grain Marketing Record receipts of wheat, abnormally light receipts of other grains, and low prices, were the outstanding features of the grain trade at the five principal grain markets of this District in 1931. The five markets received more wheat during 1931 than in any preceding year, but less oats, rye, and kafir than BUILDING IN TENTH DISTRICT Mo»Tu or DEcEMBEll Permits Estimated 1931 1930 1931 $ 57,01 5 32 33 12,310 '.14 14 8,430 25 25 2 242 223,540 54 40 12,76o 15 IO 15 7,869 18 26 9, 175 108 490,900 97 14°,755 38 33 173 n8,024 71 210,285 JI 54 20 44 5,755 6 16 5,975 18,055 24 17 CITIES TWELVE MoxTHI Cost 1930 $ 66,190 54,486 357 258,400 236,545 3°3 2,250,119 go,860 241 614 2,075 619 1 ,975 924 2 6,553 652 5,59° 186 496 166 794 1,410 1,1z4 1 7,695 8,925 221,960 2,004,450 91 ,565 IO II 26 68 47 148 76 82,:203 47,443 826 1,104 $1,480,319 $6,220,133 5,320 24,5o5 Permits 1931 1930 699 94 1 471 4,589 34,335 27,94° u,015 165,012 543,849 l'lI,339 39 -15.6 33° 565 5,420 429 236 670 1,961 615 3,447 854 1,030 274 5n 233 684 2,407 1,765 22,372 Estimated Coat 1931 1930 $ 1,520,89& $1,652,778 641,IJ6 447,516 926,321 387,963 8,007,100 7, 127,490 1,893,161 328,704 858,765 525,885 1,3 29,0 53 631,382 5,7 2o,95o I 5,94'1,375 1,585,864 1,597,634 13,356,821 20,848,934 5,121,226 3,535,002 537,206 37 1,073 23°,357 808,936 1,406,538 1,599,465 181,230 343,477 2,425,163 1,559,998 8,354,120 4, 292,699 2,576,892 6,276,230 $45,919,142 $79,031,181 THE MONTHLY REVIEW in any year in over a decade. Receipts of corn were the lightest for any year since 192.5 and of barley since 192.6, Arrivals of all classes of grain at the five markets in December were substantially smaller than in the corresponding month last year, and, with the exception of corn, smaller than in November. The harvesting and marketing of corn were retarded by weather conditions, and, although the combined receipts at the five markets during December were larger than in the preceding month, they only amounted to 1,310,500 bushels compared to a ten year average movement of 8,173,000 bushels. This decline also reflected a determination on the part of producers to hold corn for more remunerative prices. On October 5, No. 1 hard and dark wheat for December delivery sold at 37½ cents per bushel at Kansas City, the lowest price of record at that market. During the same month No. 2 mixed corn sold at 34½ cents per bushel, the lowest since 1901, and No. 2. white oats at 2.1 cents, the lowest since 1900. December closing prices for No. I dark, hard wheat, No. '.2. mixed corn and No. 2. white oats were 50, 36, and 29 cents per bushel, respectively, compared to 70, 57, and 32. cents per bushel one year earlier. United States exports of wheat and flour were reported by the Department of Commerce as the smallest since 1912. RECEIPTS OF GRAIN AT TENTH DISTRICT MARKETS Hutchinson ... Kansas City.. Omaha.. _...... St. Joseph ..._ Wichita_____ Year 1931 ___ Year 1930._ Year 19:29.._ Year 1928__ Year 1927_ Dec. 1931.... _ Nov. 1931__ Dec. 1930... _. Wheat Bushels 64,'loo,600 I'l5,03'l,ooo 40,408,000 14,578,200 34,293,000 Corn Oats Rye Barley K:i.fir Bushels Bushels Bushels Bulihcls Bushels 1,151,250 15,000 ····- ···· 105,000 904,800 'l'l,045,500 3,110,000 133,500 1,051,600 1,455,'loo 13,144,600 3,099,600 131,600 '168,800 8,970,000 2,834,000 4,500 91,000 12,000 1,'l71,400 105,000 ·····-····· 137,800 93,600 '178,511,800 210,117,890 232,169,680 '116,641,540 175,945,400 10,893,850 II,4,88,800 u.,631,490 46,58'l,750 9,163,600 269,600 70,060,900 15,156,500 1,297,200 66,336,250 14,701,000 2,12:2,700 83,844,200 13,67:2,000 1,699,500 59,964,350 13,03-:>,500 'l,009,900 1,310,500 534,000 15,500 1,'142,750 54'l,500 19,000 9,433,550 579,000 81,300 - - - - ---- ---- ---- ---- ---- 1,654,200 2,465,600 5,4n,050 4,371,000 5,436,700 8,'161,600 5,983,350 7,3'l3,4,oo 2,852,250 6,573,600 5j,150 190,300 89,100 425,100 208,950 553,300 Flour Production The 1931 output of flour at southwestern mills which report their production figures weekly to the Northwestern Miller, was the smallest for any year since 192.5, being 5.9 percent below the 1930 output, and 9.6 percent below that of 192.9. In December these mills operated at a lower rate of activity and produced less flour than in any December since 1925, and the 14.4 percent decline from the preceding month was greater than normally occurs. f"t, The production figures for::December and )he year with comparisons: Dec. 1931 Barrels 107,913 Atchison ..·-····· Kansas City._ 629,883 91,117 Omaha.·--······ Salina ____ _____ _ 152,594 St. Joseph_ _ _ 48,574 Wichita_ ________ 157, 177 Outside............ 757,108 Total_____ ___ 1,944,366 Nov. 1931 Barrels 130,364 664,701 106,95'1 191,017 79,828 2,273,407 Dec. 1930 Barrels 129,876 631,454 101,354 180,427 25,710 139,380 861,725 Year 1931 Barrels 1,476,42 5 7,5 1 3,789 1, 133,936 2,191,525 757,298 1,676,774 9,53 2 , 02 5 Year 1930 Barrels 1,604,517 7,768,810 1,281,258 1,994,386 86'1,3'.!.l 1,846,867 10,457,022 'l,069,9'l6 24,281,77'1 25,815,181 December flour trade was marked Ly the usual holiday and inventory period dullness. Buyers, desiring to keep stocks as low as possible at inventory time, were reluctant to place orders except for immediate needs, and bookings were generally for small lots. Flour prices moved narrowly during the mont.l-1 and closed slightly lower. Millfeed demand continued dull and quotations on bran and shorts showed a net loss for the month of 50 cents to $1 per ton. 5 -Livestock Light supplies of cattle and calves, and horses and mules, normal supplies of hogs, and record receipts of sheep and lambs during 1931 were indicated by the annual reports of the six principal livestock markets of this District . . Receipts of cattle and calves at these markets in 1931 were the smallest, and of sheep the largest for any year since before the war. Hogs were in about normal supply although arrivals during the year, including hogs shipped direl:t to packers' yards, were somewhat smaller than in the three preceding years. Fewer horses and mules were received at these markets than in any year since 192.1. Receipts of cattle, calves, hogs, and horses and mules at sixty-five markets in the United States in 1931 were 12, 4.5, 7, and 39.5 percent, respectively, below the average for the preceding five years, and receipts of sheep and lambs were 26.9 percent greater. In December there was a seasonal decrease in the marketings of cattle, calves, sheep, and horses and mules, and about a normal increase in the marketings of hogs as compared to November. Total arrivals of cattle and calves at the six markets were the smallest for any December since 192.1 and fewer horses and mules were received than in the like month of any year since 1920. Receipts of sheep and lambs continued heavy and were greater than for any December since 1919. The countryward movement of stocker and feeder cattle from market centers to feed lots was unusually light during 1931, whereas, that of calves was the greatest in recent years. The outgo of hogs was also small, but that of sheep was about normal although the movement of sheep and lambs direct from ranges to feed lots was greater than generally occurs. Despite low prices for feeding livestock, stockmen experienced difficulty in financing feeding operations, and the movement to feedlots was restricted an<l more sheep and cattle are being fed under contract agreements than normally. PRICES: The trend of livestock values in 1931 was sharply downward and closing prices compared to those of 1930 approximate the following net declines: beef steers, $2.50 to $3.50 per hundred pounds; cows, $1.50 to $3; hogs, f,3.50 to $3.75; lambs, f,2..50 to $3; and fat ewes, $1. Cattle and calves being in light supply, prices were relatively higher than for other livestock, although sharp fluctuations and wide price spreads were frequent and prices at times were at the lowest levels in twenty years, espc.!cially as applied to stockers and feeders. Mutton consumption held up relatively well throughout the year, but record supplies of sheep and lambs, and low wool prices had a depressing effect on the market, and on November 30 top lambs sold at $5.25 per hundred pounds, the lowest top in twenty years. Prices for feeder lambs, during the final quarter of the year, were the lowest in twenty-seven years. Flockmasters were unable at any time to sell lambs for the cost of production, or to market old ewes for much more than enough to pay transportation costs. Warm weather, unemployment, and limited export demand were unfavorable factors affecting the hog market in 1931. Prices declined steadily throughout the year and by mid-December top hogs were quoted at $3.85 per hundred pounds at Kansas City, the lowest since 1899. Hogs marketed the forepart of the year showed a profitable ·feeding margin as feed · costs were lower, but prices had · declined to unsatisfactory levels the closing "months of the year. 6 THE MONTHLY REVIEW Hogs were 20 cents and lambs 15 to 25 cents per hundred pounds higher on December 31 than one month earlier, closing at $4.30 and $5.50, respectively. Cattle closed the month 25 cents to $1 lower with bulk of sales from '1,5 to $7.25 per hundred pounds. CATTLE AND SHEEP AND LAMBS 0~ FEED: The Bureau of Agricultural Economics, United States Department of Agriculture, estimated there were 5 percent fewer cattle on feed in the eleven Corn Belt states on January 1, 1932, than one year earlier, 8 percent more in the states east of the Mississippi river, and 17 percent less in the western states. Missouri with a 4 percent increase was the only state in this District to report more cattle on feed this year than last. In New Mexico there was no change but other states of this District reported the following precentage decreases: Colorado, 48; Nebraska, 20; Wyoming, 11; Kansas, 5. The estimates placed the number of sheep and lambs on feed in the principal feeding states at 6,186,ooo head or 14 percent over the revised estimates for the number on feed January 1, 193r. The number on feed in six states of this District and the United States January I of the past five years, is shown in the following table: SHEEP AND LAMBS ON FEED, JANUARY 1 1932 1931 1930 1929 Colorado ___________ . 1,56o,ooo 1,550,000 2,035,000 1,520,000 Kansas ............... 420,000 280,000 310,000 300,000 Missouri .............. 130,000 140,000 140,000 135,000 Nebraska ............ 800,000 820,000 720,000 950,000 New Mexico._. __ . 80,000 10,000 20,000 10,000 Wyoming............ 120,000 110,000 170,000 172,000 1928 1,580,000 2o6,ooo 132,000 690,000 20,000 90,000 Six states ............ Total, U.S ......... 2,718,000 4,463,000 3,16o,ooo 6,186,000 2,902,000 5,428,000 3,565,ooo 5,886,000 2,875,000 4,822,000 The December I survey of fall breeding intentions of sows to farrow next spring shows a 12.7 percent increase fur the United States over farrowings in the spring of r93r. Allowance must be made, however, for a spread between December 1 breeding intentions and actual farrowings next spring. Indications on December I were that every state in the Tenth District, except Nebraska and Wyoming, would have a larger pig crop next spring than last. Farrowings in the fall of 1931 and December 1 breeding intentions are shown in the following: Sows Farrowed Fall 1931 Compared to Fal11930 Spring1931 Percent Percent Colorado ....... 144.5 89.7 Kansas .... ·-··· 135.7 98.4 Missouri... ..... 120.1 87.9 Nebraska .... _ 132.9 39.2 New Mexico. 100.0 108.3 Oklahoma ..... 113.6 108.7 Wyoming ...... 110.1 60.4 U.S ............... 119.5 62.5 RANGES: Feed supplies on western ranges are reported as generally short ex~ept in the southwest, but livestock is reported in generally fair to good condition although not in as good flesh as usual. Livestock numbers in dry areas have been reduced to correspund to feed supplies, and there is sufficient feed in most sections to carry the livestock on hand. Wheat pastures have been wet and have furnished little feed. THE DECEMBER I PIG SURVEY: Reports to the Department of Agriculture, covering 73,000 farms in the United States, indicate a 19.7 percent increase in the 1931 fall pig crop over that of 1930. This increase, added to that of 2.5 percent in the spring pig crop, makes the 1931 pig crop 9 percent, or about 4,500,000 head, larger than that of the previous year. Wyoming and New Mexico were the only states in this District in which this year's fall pig crop was smaller than that of last year. Pigs Saved ~ Intentions to Farrow Fall 1931 compared Spring 1932 compared t0Fallof1930 to Spring of 1931 Percent Pen:ent 144.0 126.6 135.0 136.4 n5.8 11 7•9 1'2.8.o 98.7 73.9 136.1 127.6 131.5 93.5 86.1 119.7 112.7 Meat Packing Operations at meat packing establishments during December and the year 1931, as measured by the number of head of livestock purchased by packers at the six Tenth District market centers, including hogs shipped direct to packers' yards, followed very closely the volume of receipts of meat animals at those markets. The slaughter of cattle and calves during the month and the year was the smallest for any recent December or recent year, and that of sheep was larger than in any recent December and any recent year except 1930. The December slaughter of swine was 41.5 percent greater than in the like month last year, but the annual total showed an increase of only 0.5 percent. The United States Department of Agriculture reported 8,108,000 cattle, 4,716,000 calves, 18,071,000 sheep and lambs, and 44,772,000 swine slaughtered under Federal meat inspecti9n in 193r. These totals compare with 8,170,000 cattle, 4,595,000 calves, 16,697,000 sheep and lambs, and 44,266,000 hogs reported for 1930. Cold Storage Holdings December witnessed a seasonal increase in United States cold storage holdings of beef, pork, lamb and mutton, poultry, miscellaneous meats, and lard, and a seasonal decrease in holdings of eggs, creamery butter, and cheese. The in-storage movement of beef~ pork, and miscellaneous meats was larger, and the out-of-storage movement of eggs, creamery butter, and cheese was smaller, than in December, 1931, or the five year average for that month. The increase in stocks of lamb and mutton and MOVEMENT OF LIVESTOCK IN THE TENTH FEDERAL RESERVE DISTRICT RECEIPTS STOCKERS AND FEEDERS PURCHASED FOR SLAUGHTER Cattle Calves Hogs C;ittle Calves Hogs Sheep Calves Hogs Sheep Sheep Cattle Kansas City ........ .... .......... 1,665,445 566,002 l 56,626 *2,315,615 1,433,778 292,219 *2,815,554 2,244,011 54,85'2 693,967 87,455 257,774 Omaha ................................ 1,570,054 86o,471 l 19,791 3,524,691 3,510,013 48,96o 22,365 70,831 2,4 24,992 1,961,444 963,528 338,890 St. Joseph .......................... 13,7 13 254,035 295,423 18,898 75,600 1,321,703 1,572,403 73,o6o 58,948 432,579 964,529 1, 179,0 59 Denver................................ 216,162 13,0 75 1,081,659 1'2.J,918 24,706 439,56:2 64,354 305,090 429,835 597, 156 2,498,888 35,317 201,820 Oklahoma City.................. 277,95 1 226,827 89,683 64,140 113,119 67,513 79,730 Wichita ............................. 81,1'28 235,280 107,140 82,448 21,910 78,758 440,145 473,772 Year 1931 .......................... 4,544,74° 710,452 9,010,827 10,022,138 Year 1930.......................... 4,762,320 890,096 9,417,836 9,285,085 Year 1929 .......................... 4,828,791 814,708 10,779,320 8,875,189 Year 1928 .......................... 4,961,896 787,972 10,759,756 8,835,717 Year 1927 .. - ....................... 5,272,676 827,830 8,264,750 7,640,649 December 1931 .................. 317,181 613,871 45,000 971,564 November 1931 812,463 II5,448 705,8o6 474,894 802,614 412,397 76,835 6o5,355 December 1930 ..·-········ ···· • Jncludes 1,478,96o hogs shipped direct to packers• yards in 1931. 1,194,II4 1,370,663 1,422,956 1,509,054 1,426,291 87,892 187,567 139,730 185,445 217,671 172,145 163,130 II3,769 18,332 50,136 26,292 109,190 124,673 175,814 198,170 174,356 4,850 10,142 7,779 2,556,996 2,169,346 2,178,691 2,809,183 2,66o,741 2,647,521 103,174 335,628 167,789 2,305,410 2,39 1,599 2,379,944 2,814,718 173,776 162,551 194,379 397,161 479,660 481,946 482,158 578,299 27,654 32,498 40,us 6,801,943 5,028,01'2 6,766,172 5,196,477 8,208,028 4,496,871 8,424,051 4,457,9 12 6,551, 295 3,914,142 421,435 764, 22 5 358,871 539,987 595,971 356,597 7 THE MONTHLY REVIEW poultry was larger than for December last year, but short of the five year average. Stocks as of January 1, 1932, were smaller for all commodities except pork and poultry than one year earlier, and, with the exception of eggs, below the five year average January I totals. United States cold storage holdings as reported by the Bureau of Agricultural Economics, United States Department of Agriculture: *Jan. Dec. 1 1932 1931 1 Jan. 1931 Jan. 1 1 91,180 561,680 4,916 123,462 9,005 76,418 64,719 1,198 1,564 53,951 76,291 Petroleum The combined production of crude oil in the various fields in this District in 1931 was 13.1 percent below that of the preceding year and approximated that of 1926. Tenth District production reached its peak in 1927 when the flow totaled 343,150,000 barrels. In the years 1929 and 1928, production exceeded 300,000,000 barrels. The December total was larger than that for November this year or December, 1930. Crude oil prices, which declined to record low levels in July, ranging from 10 cents per barrel for low gravity oil to 22 cents for high gravity grades, closed the year at a price range, depending on grade, of 61 to 85 cents per barrel as compared to 65 cents to $ 1 .07 per barrel one year ago. Crude oil production in five Tenth District states and the United States: Oklahoma..·-······· Kansas ................ Wyoming............ Colorado..·-········· New Mexico... --. *Year 1931 Year 1930 Barrels Barrels 180,397,000 215,227,000 36,973,000 41,617,000 14,802,000 17,846,000 1,545,000 1,657,000 15,265,000 10,172,000 Total, 5 states.... 22,466,000 21,907,000 21,007,000 248,982,000 286,519,000 Total, U.S ... -.... 74,526,000 72,851,000 66,985,000 851,627,000 896,265,000 *Estimated, American Petroleum Institute. Low oil prices discouraged, and proration agreements and requirements limited drilling operations, and, as a result, fewer oil wells were completed in this District in 1931 than in any recent year. The number of rigs up and wells drilling on January 1, 1932, was likewise the smallest in years. The decline in field operations in 1931 as compared to 1930 is shown in the following: Wells Barrels Daily Completed New Prod'n Oklahoma...-......... .. 64,962 54 Kansas .................... 28 10,120 Wyoming......... ·-···· 700 3 0 0 Colorado.---··········· New Mexico·---····· 3,5 24 4 December 1931.. .... 89 November 1931. ___ 100 December 1930...... 310 Year 193 l ·--··········· 1,685 Year 1930_·-··········· 4,9 14 79,306 48,593 629,865 2,161,236 6,980,739 Dry Wells 16 5 0 Gas Wells 13 3 0 0 I 23 34 109 558 1,529 17 15 53 3 23 608 changed, as compared to the like date last year. The report also disclosed that a slight increase in the domestic demand for gasoline in the first eleven months this year was more than offset by a decline in exports. The domestic and foreign demand for kerosene, fuel oil, and lubricants did not equal that for the same period in I 930. 5 Yr. Aver. Beef, lbs.·---·········· ······················· 53,262 39,158 75,285 Pork, lbs....................................... 559,402 396,563 521,192 Lan,b and mutton, lbs............... 2,26o 1,985 4,677 Poultry, lbs................................... 116,759 89,971 104,913 **Turkeys, lbs................................. 10,302 5,123 4,566 Misl:ellaneous mt:ats, lbs............. 65,662 50,664 84,169 Lard, lbs...................................... 50,818 34,824 51,434 Eggs, cases.................................... 1,475 3,447 1,894 Eggs, frozen (case equivalent)... 2,261 2,469 2,377 Butter creamery, lbs .... ·-············ 26,550 42,242 63,401 Cheese, all varieties, lbs............. 73,234 78,565 79,015 *Subject to revision. **Included in Poultry. (ooo omitted). GROSS PRODUCTION *Dec. 1931 Nov. 1931 Dec. 1930 Barrels Barrels Barrels 16,575,000 16,257,000 l 5,085,000 3,271,000 3,063,000 3,150,000 1,150,000 1,148,000 1,419,000 121,000 140,000 115,000 1,349,000 1,324,000 1,213,000 The United States Bureau of Mines reported the November 30 stocks of crude petroleum, kerosene, gas and fuel oil, wax, lubricants, and road oil as lower, and those of motor fuel un- Rigs-Wdls Drilling 3°7 152 78 85 54 676 646 1,034 Zinc and Lead Mines in Missouri, Kansas, and Oklahoma, the Tristate district, shipped 47.8 percent less zinc ore and 41.5 percent less lead ore in 1931 than in 1930. Shipments of zinc ore were the smallest in over thirty-three years and shipments of lead ore the smallest since 1899. The combined value of both classes of ore was the lowest since 1898. Zinc ore closed at the year's low price of $18 per ton compared to $'26 one year earlier. Lead ore, which sold down to $30 per ton in June, closed the year at $37.50 per ton, $20 per ton below last year's close. The tonnage and value of zinc ore and lead ore shipments for 1931 and 1930: ZINC ORE SHIPPED VAWE TONS Oklahoma.-··-··················· Kansas ............................. . Missouri ........................... . 1931 161,283 68,434 2,891 1930 285,526 TotaL............................... 23:2,608 445,332 Oklahoma·--····················· Kansas .............................. Missouri ........................... Total.................................. I 5o,945 8,861 1931 $ 3,631,416 1,583,624 63,281 LEAD ORE SHIPPED ToNs 1931 1930 30,511 18,444 $ 14,004 6,674 1,669 1,313 26,787 45,828 1930 f, 9,068,883 4,875,284 290,116 VALUE 1931 820,059 303,621 7°,7 19 $ 1, 194,399 1930 1, 1,976,300 925,020 84,862 ---f, 2,986,181 Bituminous Coal Soft coal production at mines in the six producing states of the Tenth District in 1931 was, for the first time in over a generation, short of 20,000,000 tons. Compared to 1930, output declined 21.5 percent and was 33.8 percent below that of 1929. December production was 6.2 percent larger than in the preceding month but was substantially below the average output for that month. Mild weather throughout the late fall and early winter months exerted a restraining influence on the demand for coal. The production figures for each of the six states and the United States for December and the year with comparisons: *De.:. 1931 Tons 662,000 Colorado._....... Kansas ............ 267,000 Missouri .......... 332,000 New Mexico ... 155,000 168,000 Oklahoma·-- ··· Wyoming........ 484,000 Nov. 1931 Tons 627,000 * 217,000 • 318,000 130,000 160,000 495,000 *Year 1930 Tons 8,197,000 2,430,000 352,000 Year 1931 Tons 6,334,ooo 2,397,000 2,920,000 178,000 1,505,000 265,000 599,ooo 1,762,000 4,964,000 1,969,000 2,794,000 6,088,000 Dec. 1930 Tons 1,015,000 307,000 3,853,ooo TotaL............. 2,068,000 1,947,000 2,716,000 19,882,000 25,331,000 United States. 30,260,000 30,110,000 40,222,000 378,110,000 467,526,000 *Estimated. 8 THE MONTHLY REVIEW Business Conditions in the United States By the Federal Reserve Board Industrial activity declined from November to December by slightly more than the usual seasonal amount, while the volume of factory employment showed about the usual decrease. Wholesale prices declined further. Index number of industrial production, adjusted for seasonal variation. (1923-1925 average- 100.) Latest figure, December, 71. PiAC(Nf 120 PlitCCtlf no f ACTOkY [MPLOYMENT I ........ ~ '00 --------- '[\.._ ~ 80 1928 192'1 ao ~ 1930 1932 Federal Reserve Board's index of factory employment with adjustment for seasonal variation. (1923-1925 avenge-100.) Latest figure, December, 69.4. ] :,.• ·i;1': t P[RGttiT 7 1 Co,,,,,,,fY"C',-i,IP.7p,,,,.Hcl, • R~s,-,v1&.1lt/JisC'OIJnlfiol, - • Ac,:i,p/,,nc-,F:oltt 1927 1-;~9 -+----+----=''---i------1 Hi2i ~930 1932 Monthly rates in the open market in New York1 commercial paper rate on 4 to 6 month paper. Acceptance rate on 90-day banker3' acceptances. Latest figures are averages of first twenty days in January. )'ILU!>•UOl'OOl.1,lt.RS 2,00 R(SERVE Dt.HK CREDIT Monthly avenge11 of daily figures for twelve Federal re1ene banks. Latest figurea are averages of first twenty daye in January. PRODUCTION AND EMPLOYMENT: Volume of industrial output decreased somewhat more than is usual in December and the Board's seasonally adjusted index declined from 72 percent of the 1923-1925 average in November to 71 percent in December. Activity in the iteel industry decreased from 30 to 24 percent of capacity for the month, partly as a result of seasonal influences; in the first three weeks of January it showed a seasonal increaie. Automobile output increased considerably in December from the extreme low level of the preceding month, and daily average output at shoe factories, which ordinarily declines at this season, ·showed little change. At textile mills production was curtailed by more than the usual seasonal amount. Numbers employed at factories decreased seasonally from the middle of November to the middle of December. In the automobile and shoe industries there were large increases in employment, while in the clothing industries employment declined. In most lines, however, changes were of a seasonal character. For the year 1931, as a whole, the average volume of industrial production was about 16 percent smaller than in 1930, reflecting large decreases in output of steel, automobiles, and building materials, offset in part by slight increase in production of textiles and shoes. Value of building contracts awarded, as reported by the F. W. Dodge Corporation, declined con~iderably more than is usual from the third to the fourth quarter, and for the year as a whole was 32 percent smaller than in 1930, reflecting reduced physical volume of construction, as well as lower building costs. DISTRIBUTION: Distribution of commodities by rail declined by the usual seasonal amount in December, and department store sales increased by approximately the usual amount. FOREIGN TRADE: Value of foreign trade continued at low level in December, and for the year as a whole exports showed a decline of 37 percent from 1930 and imports'"'a decline of 32 percent, reflecting in part the reduction in prices. WHOLESALE PRICES: Wholesale prices of commodities declined from 68 percent of the 1926 average in November to 66 percent in December, according to the Bureau of Labor Statistics, reflecting decreases in the prices of many domestic agricultural products; sugar, silk, iron and steel and petroleum products. During the first half of January prices of hogs, lard, and butter declined further while prices of cotton, silk, coffee, and copper increased. BANK CREDIT: Reserve bank credit, which had declined from the middle of October to the middle of December and had increased in the latter part of the month, declined again in the first three weeks in January. The growth in the latter part of December reflected a somewhat more than seasonal increase in the demand for currency, partly offset by reductions in member bank reserve balances and in deposits of foreign central banks. In January the return flow of currency was considerably smaller than in other recent years, while member bank reserve balances continued to decline. Acceptance holdings of the reserve banks, which had reached a total of i7so,ooo,ooo in October, have declined through maturing of bills held almost uninterruptedly since that time, and on January 20 totaled $190,000,000. The bank's portfolio of United States government securities showed some increase over the level of the early part of December and discounts for member banks increased substantially. Loans and investments of member banks in leading cities declined further during December and the first two weeks of January, reflecting reductions in loans on securities, as well as in other loans, and in investments. In the middle of January buying rates for bankers' acceptances at the Federal reserve banks were reduced and open market rates on 90 day bills declined first from 3 to 2½ percent and later to 2¼ percent. Yields of high grade bonds, after advancing for a period of about four months, declined after the turn of the year, reflecting a rise in bond prices.
@FedFRASER