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THE MONTHLY REVIEW Of Agricultural, Industrial, Trade and Financial Conditions in the Tenth Federal Reserve District FEDERAL Vol. 19 T RESERVE BANK OF KANSAS Kansas City, Mo., February 1, 1934 H E year 1933 was one of extremely short crops and sharply higher prices culminating in a net gain of approximately 48 per cent over 1932 in the December 1 estimated farm value of all crops produced in the Tenth Federal Reserve District, exclusive of Federal advancements under acreage reduction contracts. Unfavorable returns from livestock feeding operations, with prices not extensively affected as yet by Governmental livestock production control programs, offset to a large measure the improved crop returns. Prices of all grains, although still substantially below pre-war prices and the highs of last July, practically doubled during the year, but prices of beef, butter, milk, eggs, and poultry closed lower this year than last. Pork prices averaged somewhat better than the thirty-five year lows of 1932 and mutton, wool, and hides were substantially higher. Trade at both wholesale and retail improved after April, declined in September, and then recovered the final quarter of the year. Aggregate sales of five representative wholesale lines combined were 3.3 per cent larger this year than last, and total dollar sales of thirty-two reporting department stores of the District were 1.9 per cent smaller. The life insurance business exhibited similar characteristics but 1933 sales of new paid-for life insurance were 5 per cent below the 1932 volume. Sales of lumber at 156 retail yards located throughout the District increased 11.7 per cent during the year. Mills produced 4.4 per cent less flour in 1933 than in 1932 and the total output was the smallest for any year since 1925. Crude oil production increased 16.5 per cent but fell 7 per cent short of the ten-year average. The output of bituminous coal was 7.1 per cent less than a year ago and 38 per cent below normal. Substantial advances in the prices of zinc ore and lead ore stimulated production and shipments doubled. Building activity was decidedly sluggish throughout the year, averaging but a small per cent of normal. Loans and discounts of reporting member banks declined 9.3 per cent and investment holdings were enlarged 23.8 per cent during the year. Net demand deposits increased but time deposits and savings deposits fell off. Business failures, both as to number and the amount of liabilities involved, were the lightest in years. 1933 marketings of wheat and kafir at Tenth District markets, 42.6 and 33. 5 per cent under a year ago, were the lightest in recent years, and receipts of corn, oats, rye, and barley, although considerably larger than in 1932, were below normal. Stocks of wheat, corn, and oats on farms in the seven states of the District on January 1, 1934, were, respectively, 27, 25, and 36 per cent lighter than one year earlier. The fall sown acreage of winter wheat in these states was reduced about 4 per cent. Receipts of cattle, calves, hogs, including Gov.e rnment and direct purchases by packers, and horses and mules at Tenth CITY No. 2 BUSINESS IN THE TENTH F EDERAL RESERVE DISTRICT Percentages of Increase, or Decrease (- ), for December 1933 over November 1933 and December 1932, and for the year 1933 over the year 1932. December 1933 Year 1933 Compared to Compared to Banking Nov. 1933 Dec. 1932 Year 1932 Payments by check, 29 cities.................. 1.8 11.1 - 1.4 Federal Reserve Bank clearings.............. 7.3 37.2 7.3 Business failures, number........................ -25.3 -61 .4 - 37.1 Business failures, liabilities...................... -40.0 -'77.6 - 56.8 Loans, 52 member banks..._..................... 0.5 - 9.3 Investments, 52 member banks.............. 0.3 23.8 Net demand deposits, 52 member banks 1.6 18.0 Time deposits , 52 member banks·--······· Even - 6.8 Savings deposits, 44 se!ected banks........ 0.3 - 5.4 Savings accounts, 44 selected banks...... 0.5 - o.6 Distribution Wholesalers' sales, 5 lines combined ...... - 5.7 3.3 Retailers' sales, 32 department stores.... 64.9 - 1.9 L~m~er sales, 156.retail yards ................ - 14.1 11.7 - 5.0 Life msurance, wn tten·---······················· 31.2 Construction 1 35·5 - 6.6 Building contracts awarded, value·-··-··· 88.1 Residential contracts awarded, value ... . 0.3 373.9 11 9·7 Building permits in 17 cities, value....... . I.8 Production Flour. ______ .................................... - 8.1 - 14.0 - 4.4 2 5•7 16.5 Crude petroleum·-····································· - r.6 - 16.7 Soft coal._.................................................. . - 7.1 3.7 Zinc ore (shipped) Tristate District ...... 50.2 56.6 32 ·4 Lead ore (shipped) Trist ate District... .. . -39.5 - 30.2 48.7 Grain receipts, 5 markets - 45.6 Wheat·-······················································· - 12.4 Corn ............................... _ _ _ _ _ 25.2 165.3 - 18.9 Oats·---··························· 12.4 Rye.............................................................. 3 I .o - 5.5 - 38.1 Barley - 49.2 Kafir ...................... - 22.6 55.4 Livestock receipts, 6 markets 0.2 Cattle.......................................................... -3 I .3 8.3 2.2 2.4 Calve"-----········································ -46.9 1 7•9 - 2.7 Hogs............................................................ - 13.3 -5-3 43.9 Sheep.....·-·- --································ - 3.8 198.0 Horses and mules...................................... - 1.0 SH Meat packing, 6 markets 12.9 Cattle.......................................................... - 15 .8 28.3 13.0 58.7 Calves·-··················································•···· - 24.0 26.6 - 0.3 Hogs ......................... - - - -17.4 Sheep........................ _ _ _ _ _ 21.5 - 6.7 48.5 Stocker and feeder shipments, 4 markets - 8.1 -23.3 Cattle................ -----·················· -61.2 - 1 7.4 Calvcs·-························ · · · · - - - - - - 57-7 SH Hogs......... ----······························ - '.20.8 -20.8 -66.9 Sheep ...............- - - - - - - District markets during 1933 were larger, and of sheep and lambs smaller, than a year ago. However, as compared to average marketings for the past ten years, offerings of cattle and calves were light, and arrivals of sheep and lambs slightly below, and · of horses and mules and hogs slightly above, the This Copy Released For Publication In Afternoon Newspapers. January 29. THE MONTHLY REVIEW average. Operations at meat packing plants corresponded closely to livestock receipts. According to Department of Agriculture estimates, there were 8.56 per cent less cattle and 13 per cent less sheep and lambs on feed in the United States on January I, 1934, than on January 1, 1933. Also, according to December breeding intentions, the 1934 spring pig crop, exclusive of adjustments under the Government's corn-hog program, will be 8.4 per cent smaller than last year. Aided by the distribution of public funds through civil works and crop advances, Tenth District department stores experienced a record seasonal increase in sales during December. Total sales for the month were 64.9 per cent larger than in November and showed a gain of 17.9 per cent over December, 1932. Wholesale trade declined seasonally but was 23.2 per cent above a year ago. Life insurance sales, retail lumber sales, and bui!ding operations also improved as compared to the corresponding month last year. Business insolvencies were comparatively light. Financial REPORTING MEMBER BANKS: A comparison of the weekly condition statements of fifty-two reporting member banks in leading cities of this District discloses that between December 28, 1932, and December 27, 1933, total loans and discounts, as reported by these banks, declined 9.3 per cent and total investments increased 23.8 per cent. Net demand deposits gained 18.0 per cent for the period but time deposits showed a loss of 6.8 per cent. Reserve deposits with the Federal Reserve Bank of Kansas City increased 74.4 per cent and borrowings from that bank were reduced to zero. Reductions in loans and discounts applied to all classes and the total as of December 27, 1933, was the smallest in recent years and over 50 per cent below the high of 1929. Purchases of United States Government securities more than offset a reduction in investments in other bonds, stocks, and securities and carried total investment holdings to new high levels. Slight increases in loans and discounts, investments, reserve balances, and net demand deposits, with time deposits stationary, were recorded for the four weeks' period ended January IO, 1934. Changes the past year in the principal items contained in the weekly condition statements of fifty-two reporting member banks arc indicated in the following: Loans and investments-total.. ............................ Loans and discounts-tota. ~ - - - - - Securcd by stocks and bonds .......· - - - ~ All other loans and discounts............................ Investments-tota..______ ···· - -- - ~ U. S. securities __ ··-········----- - ~ Other securitie~--------················ Reserve with F. R. bank.--··································· Net demand deposits _ _ _ _ _ _ _ __ Time deposits-------························· Government deposits .............................................. Dec. 27, 1933 Dec. 28, 1932 $518,000,000 $479,000,000 206,000,000 227,000,000 66,000,000 59,000,000 161,000,000 I 47,000,000 312,000,000 252,000,000 203,000,000 141,000,000 I I I ,000,000 109,000,000 75,000,000 43,000,000 316,000,000 373,000,000 164,000,000 176,000,000 10,000,000 4,000,000 in 1923, totaled $9,596,600 on January 10 this year and this total compares with $19,488,900 outstanding at the high time of January 2, 1920. Gold reserves, holdings of United States Government securities, and member banks' reserve deposits are now at all time high levels. Federal reserve note circulation, which rose sharply the forepart of March to $149,699,035 on March 15, declined thereafter to $106,578,035 on January IO, 1934, which total has not otherwise been exceeded since 1920. Total resources of this bank and branches are larger than at any time since 1920. Member bank borrowings from the Federal Reserve Bank of Kansas City, having declined from the 1933 peak of $30,882,661 as of March 8 to $1,294,6II on January 10, are now $10,032,540 less than a year ago and the lowest for any post-war reporting date. The principal resource and liability items, as of the three dates mentioned, appear below: Jan. 10, 1934 Dec. 13, 1933 Jan. II, 1933 Gold reserves·-·········----- f,152,704,449 f,138,330,347 '/, 86,372,764 Other cash _ _ _ _ _ _ _ 9,576,886 9,571,708 10,337,104 Bills discounte..._______ 1,294,611 2,107,493 n,327,151 Bills purchased................................ 4,609,575 5,509,673 855,597 U.S. securities .... _ _ _ _ _ _ 83,444,200 83,341,200 55,914,100 68,096,848 Total bills and securities................ 89,348,386 90,958,366 187,754,828 Total resources ... - - - - - - , 280,639,398 269,172,921 F. R. notes in circulation.............. 106,578,035 105,965,685 90,399,565 F. R. bank notes in circulation.... 9,596,6oo 9,633,400 Member banks' reserve deposits._. 124/171,197 113,022,441 65,814,IIo The discount rate of the Federal Reserve Bank of Kansas City, on all classes of paper and all maturities, remains unchanged at 3½ per cent. In the four weeks' period ended January 10, 1934, gold reserves and member banks' reserve deposits increased 10.4 and 10 per cent, respectively, and member banks paid off $812,882 of bills rediscounted. Other items showed only fractional changes. RESERVE BANK CLEARINGS: During the year 1933 the Federal Reserve Bank of Kansas City and branches at Omaha, Denver, and Oklahoma City handled 50,433,000 items, representing $6,787,932,000, in the performance of its check collection service for banks in this District. Compared to 1932 there was a decrease of 1.3 per cent in the number of items handled but an increase of 7.3 per cent in the aggregate amount. December collections were substantially larger, both m number and dollar amount, ~han in November this year or December, 1932. Totals for December and the year with comparisons: ITEMS December.-....... November ........ Year .................. 1933 5,535,101 4,364,100 50,433,000 1932 4,016,071 3,809,061 51,085,000 AMOUNT .,, 697,585,000 1932 '$ 508,559,000 650,296,000 6,787,932,000 6,326,036,000 1933 508,756,000 Savings A fractional gain in savings deposits and savings accounts during December was shown by the combined reports of fortyfour banks in selected cities of the District. Savings deposits as of January 1, 1934, were, however, 5.4 per cent less than on January 1, 1933, and the net loss in the number of depositors during the year amounted ·to..o.6 per cent. Savings accounts and savings deposits as reported by the forty-four banks: FEDERAL RESERVE BANK OPERATIO NS : Marked changes occurred the past year in most of the principal resource and liability items contained in the weekly condition statements of this bank and its three branches. Comparing the statement of January IO, 1934, with that of January II, 1933, gold reserves increased 76.8 per cent, holdings of United States Government securities 49.2 per cent, total resources 49.5 per Savings Accounts cent, member banks' reserve deposits 88.8 per cent, and Federal 1, 1934 ·-- ································· 368,082 reserve note circulation 17.9 per cent during the fifty-two January December 1, 1933.................................... 366,324 weeks. The re-issuance of Federal reserve bank notes, retired · January I, I 933---·- --····-·························· 370,468 Savings Deposits '$100,434,367 I oo, I 54,567 106,149,729 THE MONTHLY REVIEW 3 VOLUME OF PRINCIPAL TRANSACTIONS HANDLED BY THE FEDERAL RESERVE BANK OF KANSAS CITY DURING THE YEARS 1933 AND 1932 1933 Number Amount Number Amount 23,138 1> 134,429,151.00 Notes discounted or rediscounted for member banks·---······· · · - - - - - · - - -54,776 1> 346,617,137.43 6o,934,699 307,056,499.00 Currency received and counted .................· - - - -- - - ·- - -- - ····················· 238,200,565.00 53,935,549 Coin received and counted.......................................................................................................... 17,595,02 5.oo 9,882,201.00 51,654,635 62,864,579 6,787,932,000.00 51,085,000 6,326,036,000.00 5o,433,ooo Checks handled - - - - · ·················································---·······························381,187 235,151,309.00 353,827 I 92,430,999.92 Collection items handled ·-········································ ·············- -- --········ ···················· 3,208,224,786.00 109,122 98,676 3,580,168,772.00 Transfers of Funds----··························· · · - - - - - ·············································· 1,042,246 16,5u,425.oo I 5,649,926.00 956,372 U. S. Government Coupons handled·-············- - - -······················································· U.S. Securities received from Treasury Department.. .......................................................... 151,164 106,450 350,948,992.00 218,728,909.73 261,102,690.00 184,151 U.S. Securities returned to Treasury Department........... ··························---- 132,507 202,792,630.79 U. S. Securities issued, redeemed, canceled or exchanged as Fiscal Agent of the U.S ..... 167,663 535,700,6o9.oo 273,564 346,325,924.50 Custody transaction,.______ - - - - -··· ..................................................... 567,206,917.00 401,423 4o9,447 374,178,160.73 Custody transactions for Reconstruction Finance Corporation ............................................ 96,888,805.00 9,3°5 11 1,574,109,621.00 Mail handled and value of registered mail. ___ ...... - - --············································· 3,436, 7 I ,049,329,396.34 Purchase and sale of Government Securities (for other than our own account) ................ 6,382 79,117,774.00 19,105,390.00 Bank Debits Returns to the Federal Reserve Bank of Kansas City show the banks in twenty-nine leading cities of the Tenth District debited to individual accounts amounts aggregating $9,279,327,000 in the fifty-two weeks ended January 3, 1934. This was 1.4 per cent below the amount reported for the fifty-two weeks ended January 4, 1933, and the smallest total reported in the fifteen years of record. In 1929 check payments in these same cities totaled $19,622,000,000. Debits for the four weeks ended January 3 were larger by 1.8 per cent than for the preceding four weeks and 1 I. 1 per cent larger than for the like period a year ago. PAYMENTS BY CHECK FIITY-TWO WEEKS ENDED Albuquerque, N. M-·--··············· Atchison, Kans. _ _ _ _ __ Bartlesville, Oki _ _ __ Casper, Wyo .. ---························· Cheyenne, Wyo.......................... . Colorado Springs, Colo ..-.......... . Denver, Colo•.............................. Enid, Okla,--······························ Fremont, Nebr.·-························· Grand Junction, Colo ................. Guthrie, Okl--- Hutchinson, Kans ....................... Independence, Kans .................. . Joplin, Mo,_ .. ____ _ Kansas City, Kans ..................... Kansas City, Mo _ _ __ Lawrence, Kans.·-······················· Lincoln, Nebr·--························· Muskogee, Okla.. _....................... Oklahoma City, Okla ................. Okmulgee, Okla ........................... Omaha, Nebr. _ _ __ Pittsburg, Kan ......_ __ Pueblo, Colo..--··························· Salina, Kans·--··························· St. Joseph, Mo.·--······················· Jan.3,1934 75,861,000 1> 32,699,000 ~238,732,000 43,630,000 54,816,000 121,742,000 1,231,344,000 89,120,000 20,182,000 16,298,000 14,877,000 l 13,359,000 Jan.4,1933 90,881,000 1> 32,867,000 204,627,000 52,003,000 59,104,000 126,331,000 1,216,007,000 Per cent Change -16.5 16.7 -16.1 - 7.3 - 3.6 1.3 85,050,000 25,592,000 4.8 -21.1 21,822,000 14,609,000 ·- 2 5.3 I 17,534,000 -3.6 1. 8 49,ou,000 78,940,000 u2,423,ooo 71,422,000 10.5 130,889,000 2, 792,66 I ,ooo 37,484,000 250,455,000 -14.I 35,029,000 226,484,000 75,383,ooo I ,233,114,000 34,567,000 152,418,000 77,052,000 26,848,000 1,310,026,000 37,126,000 148,169,000 74,081,000 267,863,000 146,528,000 858,687,000 379, I I 3,000 271,213,000 143,583,000 Topeka, K a n - - - - -Tulsa, OJd _ _ __ Wichita, Kans ............................. 351,694,000 Total 29 cities, 52 weeks ............ Total 29 cities, 4 weeks........... . U.S. 263 cities, 4 weeks ............ '$ 9, 279,3 27,000 768,834,000 25,889,272,000 - 805,035,000 2 3.3 2,0 - 6.5 - 9.6 o.6 - 3.3 5.9 - 6.9 2.9 4.0 1.3 2.0 6.2 7.2 74,904,ooo 710,284,000 717,758,000 25,951,000 I.I - $ 9,4u,978,ooo 692,194,000 25,921,950,000 TENTH DISTRICT Number December I 933.................... November 1933·--··············· December 1932................... . Year 1933·- -························· Year I 932......:....................... II.I - 0,I Business Failures The December and 1933 record of business insolvencies in this District and the United States, as reported by Dun and Bradstreet, Incorporated, was the best in years, both as to the number of defaults and the amount of liabilities involved. Not since 1923 have there been fewer failures reported for the Tenth District than this year, and in only one of the past 56 75 145 1,016 1,614 Liabilities $ 520,928 868,533 2,325,518 15,008,879 34,748,053 UNITED STAT&S Number Liabilities 1,132 $ 27,200,432 1,237 25,353,376 2,469 64,188,643 20,307 502,830,584 31,822 928,312,517 Life Insurance -0.5 37,567,000 2,848,456,000 thirteen years, 1926, has the amount of money involved been less. Failures in the United States were less numerous than in any year since 1923 and liabilities the smallest in four years. December insolvencies in the Tenth District established new lows for the month, both as to number and dollars, for the fourteen years of record. 1933 totals are herewith ,: ,compared .:with : the high record number of defaults and related amounts of last year: T he Life Insurance Sales Research Bureau reported 1933 sales of new ordinary paid-for life insurance as larger than in 1932 in Nebraska and Wyoming but smaller in the states of Colorado, Kansas, Missouri, New Mexico, and Oklahoma. Business in all states was somewhat better in December this year than last year, the increase for the seven states averaging 31.2 per cent. Total sales for the various states and the United States in thousands of dollars: Dec. 1933 Colorado._........... Kansas ................ Missouri .............. Nebraska............ New Mexico·--··· Oklahoma·-········· Wyoming............ 1> Seven states._..... United States·- -· 1, 48,962 5, 12 9 Nov. 1933 1> 4,383 6,664 23,031 6,030 983 6,314 8II 548,473 681 Dec. 1932 Year 1933 Year 1932 '/, 4,599 '/, 48,513 $ 53,881 61,393 65,051 5,589 193,172 203,649 17, 1 49 4,881 57,488 54,625 726 7,320 7,99 2 64,721 58,738 5,741 7,588 657 7, 11 9 37,327 5o3,897 '/, 39,342 1> 434,212 $ 457,038 538,235 5,778,011 6,417,697 5,377 15,988 4,657 668 5,573 1> Trade Retail trade, as indicated by the total dollar sales of thirtytwo reporting department stores located in Tenth District cities, was 1.9 per cent smaller in 1933 than in 1932 and wholesale trade, based on the aggregate sales of five representative lines combined, was 3.3 per cent larger. By individual lines, wholesalers' sales of dry goods, groceries, and drugs were virtually the same this year as last, whereas, hardware and furniture dealers of the District reported gains for 1933 of 13.9 and 18 per cent, respectively. Aided by favorable weather, civil works employment, and Government crop loans and payments, December trade at THE MONTHLY REVIEW 4 RETAIL TRADE AT 32 DEPARTMENT STORES IN THE TENTH FEDERAL RESERVE DISTRICT SALES STOCKS (RETAIL) AMOUNTS COLLECTED ACCOUNTS RECEIVABLE Stores Dec. 1933 STOCK TURNOVER Year 1933 Dec. 30, 1933 Dec. 30, 1933 Dec. 1933 Report- Compared to Compared to Compared to December Compared to Compared to l Year ing Year 1932 Dec. 1932 Nov.30,1933 Dec.31,1932 1933 1932 1933 1932 Nov.30,1933 Dec.31,1932 Nov. 1933 Dec. 1932 Kansas City ........ 4 I.I - 19.1 .28 2.27 2,IO 1 5-3 I.8 -4.9 .31 9.4 - 7.3 5.5 22.0 12,I Denver.................. 4 8.2 - 27.2 20.0 0.3 3.6 .46 .38 3.28 2.83 5.0 Oklahoma City.... 3 22.7 - 2.3 -4.5 -4.0 7.8 .52 20.5 3.1 - 27.3 .43 3.65 3.o9 27•9 Tulsa.................... 3 13·9 16.6 I.I 5.2 16.4 - 27.4 .49 4.61 4.73 .53 9.7 --22.0 -28.1 Wichita ................ 3 14.6 - 6.7 .40 .29 3- 19 2-47 19.0 - 0.7 - 8.3 4.5 17-3 6.2 Other cities.......... I 5 - 4.0 I I.8 I.I -18.5 7.5 .37 .35 2.90 2.83 3.7 Tota NOTE: 17-9 -21.0 18.2 .... 32 .40 - 1.9 4.0 3.2 1.4 .35 2-95 2.67 Percentage of collections in December on accounts November 30, all stores reporting 39.1. Collections same month last year 35.5. the thirty.two department stores was 64.9 per cent~)arger than in the previous month and 17.9 per cent larger than a year ago. The increase over November is the largest ever recorded and compares with 49.2 per cent reported last year. September, following an increase of 21 .6 per cent in August over August, 1932, was the only month since April in which sales failed to exceed those for the corresponding month last year. Inventories were reduced 21 per cent, or about the usual ratio, in December and year-end stocks, although 1.4 per cent heavier than a year ago, were otherwise the lightest for that date in recent years. Collection percentages of amounts outstanding at the end of the preceding month were 39.1 for December and 35.5 for November this year and 37.2 for December, 1932. At wholesale establishments sales of dry goods declined 30 per cent, groceries 11.3, and furniture 6.1 per cent, and sales of hardware increased 3.7 and of drugs 20.8 per cent in December as compared to November. By separate lines the following gains over December, 1932, were reported: dry goods 21.5; groceries 1.1; hardware 51.9; furniture 54.9; drugs 28.8 per cent, and the five lines combined 23.2 per cent. Inventory changes reflect slight gains for the month and substantial gains for the year in hardware and furniture stocks, and declines for the month and slight increases for the year in holdings of dry goods and groceries. Drug stocks, as of December 30, were 12.8 per cent less than one month earlier and 5.7 per cent less than a year ago. Lumber December sales of lumber at 156 retail yards i~ the Tenth District declined I 4.1 per cent from N ovem her, or less than the customary seasonal amount, and, with a gain of 45.2 per cent, were larger than in the preceding year for the first time since 1927. This latter increase carried accumulated sales for the year I I. 7 per cent a hove the 193 2 footage. Dollar sales of all materials showed a somewhat more pronounced decrease for the month and increase for the year. Year-end lumber stocks were virtually the same as one month and twelve months earlier. Collections during November amounted to 26.4 per cent of amounts outstanding on November 30 as compared to collection percentages of 29.5 in November this year and 19.5 in December, 1932. Reporting Stores Dry goods ...................... 6 Groceries_ ... 5 Hardware.--·············· .... 9 Furnitur 4 Drug 5 7.1 The December business of these yards is here compared with that for November, 1933, and December, 1932, in percentages of increase or decrease: December 1933 Compared to November 1933 December 1932 Sales of lumber, board fee.._____ · -14.1 45.2 Sales of all materials, dollars............................ ---20. 7 74.4 Stocks of lumber, board fee~- -- o.8 - 0.5 Outstandings, end of month.............................. -14.2 - 3.8 Reports to the National Lumber Manufacturers Association indicate a 29 per cent increase in lumber production throughout the United States the past year. Shipments increased 14 per cent and orders booked increased 17 per cent, with the former 6 per cent and the latter 7 per cent in excess of output. Building Construction activity in the Tenth District during 1933 amounted to but a fractional part of the average for recent years. Building departments of seventeen reporting cities issued only u,252 building permits for an estimated expenditure of but $8,733,437, a reduction of 4.5 per cent in the number of permits issued and a loss of 33.4 per cent in the estimated construction costs as compared to 1932. Costs were equal to about 10 per cent of the ten-year average expenditures and permits issued slumped 60 per cent. The totals for the two years by cities: Albuquerque, N. M ...·-··············· Cheyenne, Wyo,_ Colorado Springs, Colo .. -........... Denver, Colo •.•.. Joplin, Mo •.......•.. ~....................... Kansas City, Kans ..................... Kansas City, Mo Lincoln, Nebr Oklahoma City, Okla................. Omaha, Nebr............................... Pueblo, Colo .. _............................. Salina, Kan St. Joseph, Mo ..-......................... Shawnee, Okla............•................ Topeka, Kans .. Tulsa, Okla.·-······························· Wichita, Kans ............................. PERMITS 1933 1932 418 582 291 187 2 95 420 3,57 2 3,868 161 137 361 378 1,514 1,355 640 387 986 711 769 743 4o4 4 24 132 94 100 71 257 281 453 676 56o 435 7 25 648 Total 17 cities, Year·--··············· 11,252 u,783 Total 17 cities, December.......... 549 401 Total 17 cities, November·--··-·· 796 738 WHOLESALE TRADE IN THE TENTH FEDERAL RESERVE DISTRICT AMOUNTS COLLECTED OUTSTANDINGS SALES Dec. 1933 compared to Dec. 30, 1933 compared to Dec. 1933 compared to Dec. 1932 Nov. 1933 Dec. 1932 Nov. 30, 1933 Dec. 31, 1932 Nov. 1933 14•5 8.8 -12.4 - 30.0 21.5 --25.9 26.1 I.I - 13.2 -4.0 - II.3 4·5 26.8 6.2 - 4.1 9.3 3.7 51.9 -10.2 - I.I - 6.1 5o.5 3.5 54.9 10.6 -12.0 28.8 -15,1 19.2 20.8 ESTIMATED COST 1933 1932 f, 467,619 '$ 525,141 99,o4I 87,311 256,373 132,505 1,977,77 1 3,21 4,35 2 135,287 95,395 296,uo 185,637 2,2.p,100 1,247,400 296,156 329,93 2 1,594,839 1,398,499 2,196,174 1,097,556 129,243 73,419 83,832 69,455 18,490 99,94° 248,632 147,185 2 59,97° 283,642 510,102 514,080 1,185,008 350,902 '$ 8,733,437 801,154 786,762 '$13,u4,661 364,632 1,316,839 STOCKS Dec. 30, 1933 compared to Nov. 30, 1933 Dec. 31, 1932 2.3 -3-4 -10.0 1.9 ~ 18.2 5-4 1.6 49.7 -12.8 ~ 5.7 5 THE MONTHLY REVIEW The F. W. Dodge Corporation reported a 6.6 per cent decline for the year in the value of building contracts awarded throughout this District, the 1933 total averaging 35 per cent of normal. Residential building, which averaged 22 per cent of normal, showed a gain of 23.4 per cent over 1932. Total and residential contracts awarded in the Tenth Federal Reserve District and the United States as reported by the F. W. Dodge Corporation: TOTAL BUILDING CO TRACTS AWARDED TENTH DISTRICT UNITED STATES 1933 1932 1933 1932 December ·-····· Ju,078,814 1, 4,705,087 'f, 207,209,500 $ 81,219,300 November-...... 5,890,826 5,772,258 162,330,6oo 105,302,300 Year.................. 68,300,566 73,127,381 1,259,098,800 1,351,358,700 RESIDENTIAL CONTRACTS AWARDEP TENTH DISTRICT 1933 December.-...·.... 1, 1,299,694 ovember........ 1,295,451 Year.................. 10,654,495 'f, UNITED STATES 1932 274,252 683,708 8,630,938 1, 1933 193 2 23,899,6oo 'f, 12,957,500 23,615,700 19,245,300 251,706,400 280,067,900 Some improvement was noted in December, there being a substantial increase over the same month last year in the number and value of permits issued in reporting cities and the value of residential and total awards granted throughout the District. Flour Milling Mills in this District, reporting weekly to the I orthwestern Miller, manufactured less flour in 1933 than in any previous year since 1925. Output was 4.4 per cent less than in 1932 and 8 per cent below the average for the past ten years. Operating activity averaged 60.1 per cent of full-time capacity this year and 61.9 per cent last year. December production was the smallest for that month since 1921, 14 per cent less than a year ago, and, characteristic of the holiday and inventory period, the lightest since harvest, August excepted. Production figures for December and the year with comparisons as estimated from the weekly reports of southwestern mills to the Northwestern Miller: Atchison ................ Kansas CitY·--····· Omaha .................. Salina.. Wichita. ___ ........... Outside·-··············· Dec. 1933 Nov. 1933 Barrels Barrels n5,688 46o,6o2 105,439 131,590 143,668 707,196 109.445 481,313 101,755 I46,553 164,207 808,3o6 10, oats 41, rye 38, barley 67, and kafir 65 per cent. Arrivals of wheat and kafir were the lightest 'in fifteen years of record as, excluding 1932, were those of barley. Marketings of corn, oats, and rye, although the largest in three years, were otherwise comparatively small. The out-movement from these markets was, due to the limited export demand and other factors, also extremely light. December marketings of corn were seasonally the heaviest of the year, whereas, offerings of wheat were lighter than for any month since May, 1926. Receipts of grain at the five markets the past five years are shown in the following: Dec. 1932 Year 1933 Barrels Barrels 134,902 1,402,588 574,753 6,090,821 109,136 1,209,307 156,859 1,647,363 213,513 2,074,562 746,869 9,85 1,979 Year 1932 Barrels 1,465,617 7,o79,39o 999, 246 1,900,458 2,483,559 9,362,263 Total................... 1,664,183 1,811,579 1,936,032 22,276,620 23,290,533 *United States... _. 5,176,231 5,319,293 5,582,530 63,625,717 66,019,613 *Represents about two-thirds of the total output in the United States. Demand for flour was generally quiet throughout December and trading was cut short by the holidays. Prices held steady except on clears and low grade flour, which were in heavy supply and sold at substantial discounts. Export trade was dull and of a routine character. Shipping directions were fair. Country offerings of wheat have been scant of late with mills forced, despite low operating schedules, to draw upon stocks in public elevators. Some mills have received allocations for grinding relief flour. Millfeed demand continued quiet and prices were easier. Supplies were moderate but adequate. Grain Marketing Light receipts, reflecting short crops, and a decided reversal of the downward trend of prices featured the 1933 grain trade. Receipts of all classes of grain at the five principal markets of the Tenth District were substantially below the ten-year average, declines being registered as follows: wheat 48, corn Hutchinson .. Kansas City.. Omaha .......... St. Joseph ... _. Wichita..·-····· Year 1933--·-· Year 1932 ..._. Year 1931..._. Year 1930... -. Year 1929 ... _. Dec. 1933...... ov. 1933-·-· Dec. 1932...... Wheat Corn Oats Bushels Bushels Bushels 123,75° 10,500 12,135,150 49,u5,200 18,830,000 2,658,000 14,673,600 16,902,200 3,370,000 6,964,800 13,205,500 4,558,000 13,203,000 98,800 989,300 96,091,750 167,335,250 278,5u,800 210,u7,890 232,169,680 4,093,000 4,671,150 7,522,250 50,050,750 17,855,450 46,582,750 70,o60,900 66,336,250 4,863,150 3,884,000 1,833,200 Rye Bushels 200,000 659,400 3,000 3,900 Barley Kafir Bushels Bushels 3,75° 314,6oo 502,400 1,325,800 414,400 1,500 33,250 16,900 7,800 --------- 10,695,300 866,300 961,600 7,649,000 360,400 833,600 9,163,6oo 269,6oo 1,654,200 15,156,500 1,297,200 5,4n,050 14,701,000 2,122,700 5,436,700 650,500 37,6oo 33,300 578,500 28,700 65,6oo 802,000 39,800 53,800 r,658,800 2,493,500 2,465,600 4,371,000 8,261,600 246,500 318,400 158,600 Grain prices which held steady at, or near, all-time low levels throughout the first three months of the year, thereafter advanced rapidly to the year's highs of mid-July, an approximated average increase of 200 per cent from the lows. Acute recessions then reduced the gains about half and 1933 closing prices were, on an average, about double those of a year ago. December prices were, as a whole, steady to higher, with corn and oats showing the greater gains. Principal changes in cash grain prices at Kansas City during December and the year are indicated herewith in cents per bushel: ro. 1 hard & dark wheat No. 2 mixed cor11·---······· No. 2 white oats .............. No. 2 rye .......................... No. 2 barley_ _ __ No. 2 kafir........................ Low Dec. 31 Jan. 15 Dec. 30 Nov. 29 High 1933 1933 1 933 1932 1934 1933 $1.18 f, .40_½ 1, .40_½ $ .85½ $.So 1,.80 .20 .61.½ .21.½ .46 .43_½ .41_½ .16.½ .17 .37.½ .36½ .32 .49.½ .31.½ .31.½ .60 .55 .57 .97 .60 .22.½ .23 .47 .43 .41_½ .41 1.50 .41 .82 .73 .73 Agriculture Of the crops grown in the Tenth District, cotton, sugar beets, late potatoes, dry beans, and tobacco were the only ones to make a favorable showing in 1933. Yields of grain, hay, broom corn, early potatoes, and fruit were exceedingly short. Prices on most items were much higher than a year ago and the farm value of all crops, although still distressingly low, was about 45 per cent above that of 1932. The fall sown area of winter wheat in the seven states totaled 22,199,000 acres as against 23,070,000 acres in 1932. So far the crop has suffered little damage from freezing and most areas received some moisture in December. Subsoil moisture is generally very deficient and acreage abandonment is expected to be heavy again in 1934. STOCKS OF GRAIN ON FARMS JANUARY 1: The Crop Reporting Board of the United States Department of Agriculture estimated stocks of all wheat and oats on farms January 1 as the smallest for any like date since the information has been collected (1927). Farm stocks of corn were the lowest since 1931 but were 3.8 per cent above the 1927-1931 average. 6 THE MONTHLY REVIEW Farm stocks of grain on January 1, 1934, and January 1, 1933, in thousands of bushels, thousands omitted: Wheat 1933 1934 3,068 2,483 Colorado.--······· Kansas .............. 2 3,577 36,o53 Missouri............ Nebraska.......... New Mexico·--· Oklahoma.---··· Wyoming....- ...• 4,493 13,143 4/248 17,334 134 8,605 1,069 5°7 10,470 1,551 Corn 1934 14,549 46,6o3 89,091 173,148 1,641 9,858 644 1933 9,8II 80,415 123,681 197,438 2,177 35,634 490 Oats 1933 1934 2,540 2,685 14,806 I9,7o6 19,907 23,210 17,997 46,740 46o 376 10,739 I2/l46 2,287 2,240 68,750 107,189 Seven states·-··· 53,5o4 73, 23 1 335,534 449,646 United States. __ 194,136 272,622 450,448 763,263 1,422,556 1,807,338 On January 1, 1932 and 1931, wheat stocks in the United States totaled 322,517,000 and 258,949,000 bushels; corn stocks 1,556,349,000, and 1,n8,424,ooo bushels; oats stocks 655,804,000 and 746,977,000 bushels. LAND VALUES: Commenting on changes in the farm real estate situation during the twelve months ended last March, a report just issued by the Department of Agriculture said: "The year brought further recessions in farm real estate values, greater frequency of distress sales of all kinds, a slight increase in the frequency of voluntary sales, an increase in the number of farmer bankruptcies, the highest farm population in history, further contraction of the flow of new mortgage credit, further development of cooperative adjustment plans between debtors and creditors, and a wide variety of relief legislation." Land values, which rose steadily from 1912 to 1920, have declined every year since then, the declines of 1921, 1922, 1931, 1932, and 1933 being more abrupt than in other years. 1929 values, 16 per cent above pre-war, were 32yer cent below 1920 values. 1933 values, having declined 37 per cent since 1929 and 57 per cent since 1920, were 27 per cent below pre-war. Index numbers of the estimated per acre value of farm real estate as of March 15, for the years indicated, as reported by the Division of Land Economics, Department of Agriculture, 1912 to 1914 average equals 100: 1933 1932 1931 1930 1929 1922 19:21 1920 1919 1912 Colorado. ___ 54 82 81 II8 123 132 141 83 65 98 IOI 130 149 103 151 132 Il3 II3 89 Kansas--··-·· 70 Missouri.. ____ 55 67 92 79 95 133 156 167 137 97 Nebraska ___ 69 166 n6 179 145 144 Il3 98 90 106 IIO New Mexico. 75 109 109 n5 125 144 127 IOO 89 Oklahoma___ 76 IJ6 16o 166 127 140 127 139 98 94 Wyoming ____ 62 147 176 96 98 134 146 77 95 97 n6 106 139 157 United States 73 170 140 II5 89 97 Current reports indicate improvement in farm real estate values in this District in recent months. Crop returns are higher than a year ago, taxes on land have been reduced somewhat the past three years, and many applications for Government loans have been made, or are in the process of being approved by the Federal farm loan agencies. Government bonuses for acreage reduction agreements and crop loans have also tended to relieve the financial pressure. Livestock Marketings of all species of livestock declined in December, as compared to November and, with the exception of sheep and lambs and horses and mules, were unusually light for the month. Receipts of cattle and calves at the six principal market centers of the District, although 8.3 per cent and 2.2 per cent larger than a year ago, fell 27 per cent short of the average for the past ten years. For the first time in over fifteen years marketings of hogs, including those shipped direct to packers' yards, failed to show a substantial gain over November and the total was 33 per cent below normal. Receipts of sheep were equal to 109 per cent and of horses and mules, the largest for any December since 1919, to 162 per cent of the ten-year average. Arrivals of cattle and calves at the six markets during 1933, except for a slight increase over 1932, were the lightest in recent years. Hogs, including Government purchases of pigs and sows, registered a gain of 17.9 per cent over 1932 and were in more liberal supply than in any year since 1929. Sheep and lambs were in normal volume, although offerings were 5.3 per cent below 1932 and the smallest since 1927. These markets received n2,625 horses and mules this year as against 71,556 last year. PRICES: Values of all classes of cattle declined to the lowest levels in years the forepart_i:o f December and then recovered to close slightly above the November close. Stockers and feeders declined about Io cents per hundredweight, whereas, other classes were off 50 to 75 cents at the low time. Hogs broke more than is usual, sales at Kansas City averaging $3.07 per hundred pounds against '/,3.83 in _November and '/,2.86 in December, 1932. Sheep and lambs ,._were again the bright spot, advancing 25 to 35 cents during the month and selling higher than a year ago. December and 1933 top prices for cattle of all classes were the lowest in about thirty years. The year's top for hogs was $5.10 at Kansas City compared to '/,5 in 1932 and $4.80 in 1899. Lambs sold above, and sheep below, 1932 prices a large part of the year, but tops never reached 1932 levels. One must go back to 1896 when the best price for sheep was as low as '/,4.75 and to 1899 when top lambs sold under $8.10. Hides and wool brought much better returns than a year ago. Horses and mules are now bringing the best prices in three years. Top prices for livestock at Kansas City: Dec. Nov. Dec. Year Year Year Years 1933 19291918-19 1932 1932 1933 1933 Beef steers ...................... '/, 6.oo $ 6.75 '/, 6.75 '/, 7• 15 '/, 9.85 '/,16.75 '/,25.25 Stockers and feeders.__ . 6.25 7.5o 14.00 17.50 4.85 4.75 5-25 5.00 12.50 18.00 Cow 3.00 3.75 3- 2 5 4.00 Calves.-........................... 6.oo 5.00 7.00 8.oo 17.6o 18.00 5.5o 4.20 5.10 5.00 12.05 23.40 Hogs .. J.55 3· 15 Sheep .............................. 4.9o 5.85 15.00 20.00 4.5o 4.75 4.75 8.ro IO.CO 20.50 21.75 7.6o 5.85 7• 25 Lambs·--························· NUMBER OF FARMS CHANGING OWNERSHIP BY VARIOUS METHODS, PER 1,000 OF ALL FARMS, DURING THE TWELVE MONTHS ENDED MARCH 15 OF 1933 AND 1932 Colorado_ .......... Kansas·-··-········· M1ssouri·-··········· Nebraska.__ ....... _ New Mexico ___ Oklahoma-...... _ Wyoming............ United States.. _ Voluntary Sales and Trades 1933 1932 16.0 18.5 II.6 13.8 20.0 18.2 1 3•5 10.7 2'2.0 19.2 15•4 17.6 22.5 14.7 16.8 16.2 As Reported by the Division of Land Economics, United Forced Sales and Related Defaults Delinquent Foreclosure Total Taxes Bankruptcy 1933 1933 1933 1932 1932 1932 29·3 II.O 27•5 38.5 45• 2 74.5 8.4 7.1 61.1 36.0 52•7 43• 1 8.6 8.o 51.2 42.1 50.r 59.8 4.6 58.2 5.7 39.o 34.4 63.9 20,I 26.4 7.5 3.7 23.8 33-9 19.6 17.2 3o.5 44.7 64.3 47.7 18.I 14•9 23.2 26.3 41.2 41.3 1 5•3 13·3 38.8 28.4 54.1 4 1•7 States Department of Agriculture Inheritance Administrators' and and Executors' Gift Sales 1933 1932 1932 1933 10.8 6.6 4.'2 4.0 6.6 13.1 9.0 4.6 13.8 10.4 6.7 4.5 5.6 14.3 9.4 5.7 2.2 6.2 11.7 9.3 4.8 7.5 9.5 5-4 8.8 10.7 4.4 4.7 6.2 13.1 10.4 7.0 Miscellaneous Total and Unclassified 1933 1932 2.4 3.1 2.I 1.3 2.6 2.7 1.5 I.4 2.6 3.8 1.4 3.1 3-4 2.6 3.3 2.2 All Classes 1933 19JZ 68.z II0,4 71.8 94-5 103.0 85.8 69.0 96.0 65.r 69.6 76.8 99.9 82-4 72.6 76.6 93.6 7 THE MONTHLY REVIEW ==========~~~~============== STOCKERS AND FEEDERS: There was the usual sharp drop in the countryward movement of stocker and feeder livestock from four Tenth District markets in December. During the past year the outgo of this class of livestock has, excluding calves with a 30 per cent increase over normal, been exceptionally light. As livestock values, particularly cattle, declined toward the close of the year, corn advanced, and feed shortages became more apparent stockmen were less inclined to buy feeder stock. Iowa and Nebraska, with increases of 3 per cent, were the only corn belt states to report more cattle on feed January 1 than a year ago. The decrease for Kansas was 15 per cent, Missouri 2 per cent, and the average for eleven corn belt states 8.56 per cent. Shipments of inspected stocker and feeder cattle from all markets into the corn belt from July to December, 1933, inclusive, were the smallest in fifteen years and. 11 per cent less than in the same months of 1932. Lamb feeding is also reduced, the total for the United States on January 1 , 1934, being estimated by the Bureau of Agricultural Economics as 13 per cent less than on January 1, 1933. Sheep and lambs on feed January 1: Colorado..·-········· Kansas ................ Missouri .............. Nebraska ............ ew Mexico.___. Wyoming ............ Six states.. _ ........ Corn belt states. Western states._. United States. __. 1933 1,400,000 290,000 125,000 835,000 93,ooo 190,000 1932 1,590,000 400,000 150,000 820,000 80,000 180,000 2,555,000 2,351,000 2,933,000 2,885,000 2,746,000 4,900,000 5,631,000 3,220,000 3,213,000 2,907,000 6,1'2.o,ooo 1934 1,230,000 250,000 135,000 775,000 57,000 170,000 2,617,000 1931 1,550,000 310,000 140,000 720,000 10,000 172,000 2,902,000 2,757,000 2,671,000 5,428,000 1930 2,035,000 300,000 140,000 950,000 20,000 120,000 3,565,ooo 2,901,000 2,985,000 5,886,000 RANGES: December weather was unusually favorable for livestock. Ranges were generally open, permitting grazing and the conservation of short feed supplies. Livestock held their own during the month, are in fair to good flesh, and, in the absence of severe storms, losses have been less than usual. Cattle are being held off the market for more favorable prices. Flockmasters retained a larger than usual number of ewe lambs for replacement purposes. ~• DECEMBER 1 PIG SURVEY: Reductions of 8.4 per cent for the United States and 8.1 per cent for this District in the 1934 spring pig crop are indicated by the December 1 survey of breeding intentions, as reported by the United States Department of Agriculture. These reductions are exclusive of the objectives proposed by the Government's corn-hog program ca1ling for a 20 per cent cut in the corn acreage and a 25 per cent reduction in swine numbers. Cattle 1,443,380 1,417,448 399, 271 347,619 Oklahoma City.......... 261,738 20 5,493 Wichita .. ...... .............. Kansas City.............. Omaha........................ St. Joseph .... .............. Denver........................ MOVEMENT OF RECEIPTS Hogs Calves 276,013 *4,048,318 120,051 2,950,383 84,472 1,714,933 70,601 771,064 678,192 58,316 56,108 726,358 Colorado._....... Kansas ............ Missouri.......... Nebraska ........ New Mexico.__ Oklahoma·--··· Wyoming........ Sows FARR.OWED Fall Spring 1932 *1934 1933 1933 46 41 46 53 288 268 4o5 35 2 438 500 473 544 245 270 863 863 8 7 7 5 145 136 ll3 87 6 8 4 7 PIGS SAVED Spring 1932 1933 291 413 2,333 2,330 3,231 3, 134 4,798 4,560 42 56 804 834 43 57 Fall 1933 241 1,616 2,871 1,517 28 671 22 1932 269 1,751 2,764 1,352 38 802 32 Seven states.__ 1,862 2,026 1,174 1,166 n,572 n,354 6,966 7,008 United States.. 8,021 8,755 4,871 4,898 51,328 50,on 28,758 29,779 *Based upon the December I breeding intentions .. MEAT PACKING: With a large percentage of the market arrivals of cattle, calves, and hogs in killing flesh, meat packers expanded their purchases at the six markets comparatively the latter half of 1933. The annual slaughter of cattle and calves, although 13 and 24 per cent, respectively, below normal, was 13 per cent larger than a year ago. Including direct and Government purchases, swine numbers increased 26.6 per cent as compared to 1932 and 21.4 per cent as compared to the tenyear average. Purchases of sheep and lambs were reduced 6.7 per cent for the year and 5 per cent from the average. The Department of Agriculture reported 13.5 per cent more cattle, 9.2 per cent more calves, 4.4 per cent more hogs (Government purchases excluded), and 3 per cent fewer sheep slaughtered under Federal meat inspection in the United States in 1933 than in 1932. The December and yearly figures of Federally inspected slaughter: Cattle Calves Hogs Sheep December 1933................ 720,753 401,855 4,529,664 1,390,u5 December 1932................ 567,026 326,783 4,583,577 1,264,292 Year 1933·--····················· 8,655,259 4,906,632 *47,225,518 17,353,550 Year 1932·-······················· 7,625,373 4,491,637 45,244,951 17,899,037 *Government purchases of 6,139,380 pigs and 221,347 piggy sows excluded. Cold Storage Holdings United States cold storage holdings of beef, pork, lamb and mutton, poultry, miscellaneous meats, and lard increased seasonally in December, and stocks of eggs, both cased and frozen, butter, and cheese declined. On January 1 holdings of all commodities were larger than on the like date in 1933 and, with the exception of mutton, miscellaneous meats, and eggs, in excess of the five-year average. Lard and creamery butter stocks remain abnormally heavy, but holdings of eggs, which were large at the beginning of the out-movement, have met a liberal demand at the lowest prices in years. LIVESTOCK IN THE TENTH FEDERAL RESERVE DISTRICT STOCKERS AND FEEDERS PURCHASED FoR s ..AUGHTER Sheep Cattle Calves Hogs Calves Hogs Sheep Sheep Cattle 1,671,692 445,306 91,512 41,752 173,670 *3,768,703 1,148,644 715,192 232,733 2,1'25,469 285,190 22,789 880,129 84,308 2,531,614 1,483,651 431,627 35,743 1,233,192 I 8,151 161,876 65, 295 9,676 62,596 1,586,818 303,217 992,674 2,902,316 40,820 148,496 6,850 22,561 223,027 528,047 127,969 63o,945 98,051 154,182 625,879 79,814 5°,7 24 149,06r 87,801 25,124 691,692 119,907 665,561 10,889,248 8,1 79,78 1 649,681 9,234,559 8,638,085 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 8,875,189 528,089 December 1933.......... 671,815 281,747 44,567 775,160 410,175 83,914 548,907 November 1933·---··· 26o,268 December 1932.......... 366,970 690,763 43,596 *Includes 1,971,207 hogs shipped direct to packers' yards. 1933 Year 1933 ........ .......... 4,074,949 Year 1932 .................. 4,066,055 The estimates of sows farrowed, or to be farrowed, and pigs saved for the periods indicated in seven states and the United States in thousands of head: 944, 287 1,028,158 1,194,104 1,370,663 1,422,956 58,543 151,058 186,226 81,067 1,457,181 2,268,490 187,968 2,009,794 49,288 1,438,582 184,864 109,190 2,556,996 2,169,306 217,671 124,673 2,1 78,691 2,305,410 2,39 1,599 172,145 175,814 2,809,183 15,999 2,777 166,429 79,003 37,806 238,834 197,640 3,5°7 1,810 76,3 25 19,377 99,801 129,700 totals include Government purch ases of pigs and sows. 418,983 9,732,753 4,047,7 17 370,775 7,685,72 1 4,336, 137 397,161 6,801,943 5,028,012 479,660 6,766,172 5,196,477 481,946 8,208,028 4,496,871 32,031 325,666 587,937 42,137 711,496 267,958 20,183 219,235 589,749 8 THE MONTHLY REVIEW January I holdings of commodities in cold storage warehouses and meat packing plants in the United States, with comparisons, as reported by the Bureau of Agricultural Economies: *Jan. 1 1 934 79, 17 2 627,323 3, 193 123>479 Beef, lbs .... -........................................... Pork, lbs ... ............................................ Lamb and mutton, lbs ....................... Poultry, lbs........................................... *$-furkeys, lbs ......................................... 15,745 Miscellaneous meats, lbs ..................... 65,661 Lard, lbs ............................................... 132,297 Eggs, cases ............................................ 733 Eggs, frozen (case equivalent) .......... 1,757 Butter, creamery, lbs ..-....................... 111,210 Cheese, all varieties, lbs ..................... 91,994 *Subject to revision. **Included in Poultry. *Dec. 1 1933 69,890 524,763 2,880 90,022 6,499 53,612 110,394 2,655 2,066 138,090 98,982 (ooo Jan. 1 Jan. 1 1933 5-Yr.Av 42,870 74,829 490,850 573, 2 75 4,140 2,767 I 11,642 116,733 14,586 9,95 2 42,892 73,o59 62,212 41,088 159 1,129 1,872 1,581 22,043 47,561 81,046 68,714 omitted). Petroleum According to the weekly estimates of the American Petroleum Institute, the December production of crude oil in the United States totaled 70,233,000 barrels and in this District 2.0,561 ,ooo barrels. These figures represent daily averages of 2.,266,000 barrels for the nation and 664,000 barrels for the District, and reflect a slight over-production as compared to Federal Oil Administration allowables, effective December 1, of 2.,2.10,000 and 660,600 barrels, respectively. January, 1934, allowables were reduced to 2,183,000 barrels daily for the United States and 649,200 barrels for the Tenth District. Compared to the Bureau of Mines reports for November this year and December last year, gross production declined 1.6 per cent for the month but increased 25.7 per cent over December, 1932.. Tenth District gross production for the year 1933 is estimated at 249,295,000 barrels compared to 213,968,000 barrels in 1932. and a ten-year average flow of 269,343,000 barrels. The gross production figures follow: *Dec. 1933 Nov. 1933 Dec. 1932 *Year 1933 Barrels Barrels Barrels Barrels Oklahoma·--··· 14,908,000 15,020,000 u,815,000 181,2o6,ooo Kansas ............ 3,365,ooo 3,648,000 2,642,000 41,837,000 Wyoming........ 884,000 908,000 965,000 II,205,000 84,000 76,000 946,000 Colorado.--····· 79,000 New Mexico.... 1,304,000 1,268,000 856,000 14,101,000 Year 1932 Barrels I 52,62 l ,ooo 34,300,ooo 13,359,000 1,177,000 12,511,000 Total 5 states. 20,561,000 20,899,000 16,362,000 249, 295,000 213,968,000 Total U. S,.__ . 70,233,000 69,755,ooo 58,044,000 897,047,000 781,845,000 *Estimated, American Petroleum Institute. Crude oil prices have remained steady at the posted prices as of September 29, with mid-continent grades ranging from 77 cents to $1.08 per barrel as against 77 cents to $1 per barrel at this time last year. Prices of all refined products but lubricants eased during December, particularly natural and refined gasoline. On January I mid-continent refineries were more active than on the like date for the past two years. Field activity, although showing some improvement over 1932, was comparatively light throughout the year. Bituminous Coal According to estimates based on the weekly reports of the United States Bureau of Mines, the output of bituminous coal at mines in the six coal producing states of the Tenth District amounted to 1,814,000 tons for the month of December and 16,641,000 tons for the year. Both the December and 1933 tonnage was the smallest in many years, equal to but 62 per cent of the average production the past ten years. Totals for December and the year were 16.7 and 7.1 per cent, respectively, less than for the corresponding periods of 1932. The production figures by states with comparisons: Colorado ........ Kansas ............ Missouri .......... New Mexico._. Oklahoma.__ ··· Wyoming........ *Dec. 1933 Tons 582,000 182,000 336,000 113,000 139,000 462,000 Nov. 1933 Dec. 1932 Tons Tons 770,000 546,000 180,000 232,000 446,000 335,000 1'26,000 113,000 141,000 183,000 421,000 435,000 *Year 1933 Tons Year 1932 5,202,000 5,564,000 Tons 1 ,755,000 1,865,000 3,258,000 1,127,000 1,382,000 3,9 17,000 3,795,000 1,220,000 1,326,000 4, 139,000 T otaL............. 1,814,000 1,750,000 2,178,000 16,641,000 17,909,000 United States. 29,600,000 30,582,000 31,522,000 327,940,000 309,710,000 *Estimated from the weekly reports of the United States Bureau of Mines. Zinc and Lead Shipments of zinc ore and lead ore from mines in Missouri, Kansas, and Oklahoma were approximately 50 per cent larger in 1933 than in the preceding year and, owing to higher prices, their value more than doubled. The average price for zinc ore in 1933 was '$26.2.6 per ton as against $16.84 in 1932 and for lead ore $44.79 as compared to $31.40 per ton. Zinc ore advanced from $16 in February to $35 in July then dropped $6.50 per ton to close at $28.50 as against 18 one year earlier. Lead ore opened at $32.50 per ton, advanced to $55, and closed at $46.50, or $14 per ton higher than last year. At present zinc ore is quoted at 1,25 and lead ore at $42..50 per ton. The December movement of zinc ore was considerably larger, and that of lead ore smaller, than in either November, 1933, or December, 1932.. Tonnage and value of zinc ore and lead ore shipped from the Tri-state district in 1933 and 1932: ZINC ORE SHIPPED Tons 1933 193 2 Oklahoma... _........................ . 182,146 123,587 Kansas .................................. 77,114 52,770 8,651 2,022 1issouri ............................... . T otal.-.................................. . z67,9II 34,874 $4,945,o7o 2,012,068 247,027 1932 12 , 1 97, 2 53 938,667 36,707 178,379 LEAD ORE SHIPPED Tons 1933 1932 Oklahoma............................. . 24,888 13,683 Kansas................................. . 8,415 8,420 l\11ssouri ............................... . 1,571 1,348 T otal..................................... . Value 1933 2 3,45 1 Value 1932 1933 $1,148,981 $ 462,125 392,203 307,773 43,669 7r,65 5 SuPPLEMENT To THE MONTHLY REVIEW, FEBRUARY 1, 1934 Business Conditions in the United States By the Federal Reserve Board Pr'tCOl'T PU!C '"° INDllSTRIAL PF<ODUCll0~ 130 12 or- .A 120 \ '~\ 110 100 90 ' 19,9 1930 90 80 I '- '\... 70 60 so I\ I\ "'\/'\, 60 1931 70 -I" ✓ 1932 60 ,933 ~o 193t,. Index number of industrial production, adjusted for seasonal variation. Latest figure, December, 74. .,.,. -•' 120 , c.....&. 100 I ~, 100 ~ 90 \, eo 60 so I fACr0R1 [MPL0YMC:1!"'. 110 90 ~, llO -1\ V 1930 1,29 1?)2 r--. _I 70 I I" 1Yl3 PRODUCTION AND EMPLOYMENT: The Board's index of industrial production, which is adjusted to allow for seasonal variation, advanced from 73 per cent of the 1923-1925 average in November to 74 per cent in December. For the fourth quarter of 1933 as a whole the volume of industrial output was 13 per cent larger than for the corresponding period of 1932. Activity in the steel industry, contrary to seasonal tendency, increased considerably in December and there was also an increase in the output of automobiles. Shoe production declined by an amount smaller than is usual in December. At textile mills, activity declined further by considerably more than the usual seasonal amount to about the low level of last spring. The number of employees at factories declined between the middle of November and the middle of December by somewhat more than the usual seasonal amount, reflecting chiefly reductions in working forces at cotton, woolen, and silk mills and at clothing factories. At automobile factories there was a substantial increase in employment. 60 193,. so Federal Reserve Board's index of factory employment with adjustm ent for seasonal variation. Latest figure, December, jI .8. • •tLUO"l!0;'D0UAMl 600 Industrial activity, as measured by the Federal Reserve Board's seasonally adjusted index, showed an increase in December, following upon four months of decline. Factory employment declined somewhat, while employment by public agencies showed a considerable increase. COtiSTRUCTIC!'l COHTRACTS AWARDED 1-~1---+--~ soo soo i......-"t--+ - - - t - - - i - 4001--.:i,-=-~-+---+--l------l---l1ooo Value of construction contracts awarded, as reported by the F. W. Dodge Corporation, increased further in December and the first half of January. There was a large increase in contracts awarded for public works and private construction also increased. In the fourth quarter of 1933 as a whole construction contracts in 37 states totaled '1,500,000,000 as compared with '$300,000,000 in the last quarter of 1932. DISTRIBUTION: Freight carloadings, particularly of miscellaneous freight, declined in December as compared with November by less than the usual seasonal amount. Dollar value of sales by department stores showed an increase slightly larger than is usual for December. 300 ~t--+---+-'cc--'\-1---+-----l™ Three mont~ u moving averages ?f F. W. Dodge data for 37 eastern states, adJustc:d for seasonal variation. Latest figure based on data for November and December and estimate for January, total, 250.0; residential, 25.7; all other, 224.3. Ftr: C[NT 120 PCMCClifT 120 Wt-:Ol_(SAL~ Po'llCCS 110 100 qo 60 70 DOLLAR EXCHANGE: The foreign exchange value of the dollar, which had fluctuated around 64 per cent of parity from the end of November to January 13, declined to 62 per cent on January 17, and subsequently advanced to a range from 62 to 63 per cent. PRICES: Wholesale commodity prices, which had shown a slight decline between the middle of November and the third week of December, advanced in the following month, reflecting chiefly increases in the prices of farm products and foods. Cotton and grains showed marked increases and livestock prices also advanced somewhat. BANK CREDIT: At the reserve banks the seasonal return of currency from circulation after the holiday demand amounted to about '$250,000,000 from the high point on December 22 to January 17. A large part of the funds arising from this inflow of currency to the reserve banks was added to the reserve balances of member banks, with the consequence that these balances increased by January 17 to $900,000,000 in excess of legal requirements. 60 ~o 40 so 1q34 Indexes of the United States Bureau of Labor Statistics. By months 1929 to 1931; by weeks 1932 to date. (1926=100.) Latest figure, January, 20; farm products, 59.0; foods, 64.6; other commodities, 78.6. The return flow of currency from circulation and the reduction of balances held by commercial banks for the United States Government were reflected in an increase of demand deposits at reporting member banks. Loans of the banks declined between December 13 and January 17, while holdings of United States Government and other securities increased. Short term money rates in the open market, which had shown a slight advance in December, declined in January to the previous level.
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