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(Ir copy or this bulletin ls receive<\ in actvance, it should be understood thnt !t is Intended as a special courte11y to those who have kindly assisted In Its preparation, and that lt!l contents are confidential.) This copy shall not be released for publication before March 2nd, J 91 7. FEDERAL RESERVE BANK OF KANSAS CITY CHAS, M. SAWYER. CHAIRMAN BOARD OF DIRECTORS ANO FEDERAL RESERVE AGENT Report of Conditions in District No. 10, for the March lasue of The Federal Reaerve Bulletin February 19, 1917. AGRICULTURE Reports would indicate that the new winter wheat crop will be cut short owing to the dry season, though a wet spring rnny improve the outlook. The need of moisture is general in the Southwest. Ne- braska, Kansas, Missouri and Oklahoma have shown a marked deficiency in precipitation for the past seven months, January being particularly dry. More than usual interest attarl1ed to the report of the Kansas State Agricultural College concerning the development of a pure bred l1ard winter wheat designated as P-7G2, a single head having originally lleen selected from n plot plauted to Crimean seed imported from the Don territory of Russia. Fiftynine tests on twenty-nine different forms have t'esultcd in the statement that had this wheat been genet·ally sown in Kansas the past three seasons, the value of the· production of that state would Jiave been ineri>nscrl by almost $63,000,000.00. LIVE-STOCK 'l'op prices for fourteen clm,sifin1.tions of stock on the Inca I markP.t for the week ending February 10th made an average gain over the same top prices a year ago of $2.62 per hundred pounds, hogs being $4.10 higher that week than the same week a year ngo. There bas been a vigorous mid-winter demand for de- sirable stock cattle and feeding steers at the highest pt'ices ever prevailing. The conviction is growing that the heavy ea.ttle receipts at the markets must result in at least a comparative shortage and that the potential supply of beef 111ake1·s is bf\ing sacrificed upon the altar of high prices. The January cattle receipts at the fonr largest markets in the District showed a11 increase of almost 70,000 over January, 1916, a co11sid1m,hle increase in the reeeipt of sheep, hut a folliug off in hogs. Profits uow being realized on shortfed cattle and hogs, despite hi_gh priced corn, arc gratifyiug. There has hecn a slight decline both in the ldlling and pocking of hogs. MINING Record prices for minerals have caused many large companies to engage seriously in reviving old mines, many of which have been dormant since 1893. Colorado fields report January as a record breaking month in the volume of production. Cold weather has hampered operations to some extent. of tl1e larger mines have planned extensive operations at greater depth. Many Early in February, iu the Mis- souri-Kansas-Oklahoma district., 75 per cent of the mines were either badly crippled or completely frozen up because of below zero weather, but subsequent moderations have improved this situation. Much activity is reported from the new potash fields in Nebraska, and the deposit appears to be unlimited. OIL Pri1~ns of crude oil remnm unchanged since last month's report. Throughout the fields of the MidContinent regions there is a general Rlurnp in operations owing to the foct that wntcr for steam making purposes has been difficult to obtain. In addition, the shortage of pipe and casing allll the general high cost of materials have had effects. Cold weather, comhiued with the foregoing, has caused a sharp de- cline in production. 'l'he program for pipe-line laying during the present year is the greatest in the history of the industry. Much interest is manifested in what is known as "casinghcad" gasoline, produced from gas by forcing it through pipes under heavy pressure, heating and eooling and finally condensing into a liquid which, when mixed with naphtha, results in a high gra.rlr. gasoline, the gas itself being sent back to the wells where it serves fl variety of purposes. WHOLESALE AND RETAIL The volume of spring business in implements is said to have reached such n point that wholesalers will need no second-order business to exceed the total volume of spring business last season, the only concern has to do with obtaining ears for delivery. General retail stores report a steady increase of sftles since January 1st over tlm col'responding period last year. The new year has started briskly in wholesale drugs, one of the largest hornms in the district reporting sales during January 331-3 per cent above those of Inst year. In dry goods and clothing the markets are taking on a decidedly rnarket-huying aspect, ond high prices are lwidently not retarding a freedom in buying. 'J'here has been marked activity in staple mer- ehundise including cotton dress goods, sheetings, and various domestic lines. Wholesalers have taken the precaution to carry the fullest possible stocks. Flour mills are running at about two-thirds capacity, and are largely engaged in filling eitrlicr sales. Current business is reported light by reason of the erratic wheat markets and violent changes in prices which appcar to deter buyers from replenishing stocks, which are low. anticipated. An early return of activity is The automobile industry is easily surpassing thiR season last year, assembling plants and dealers being pushed to capacity. Oklahoma reports a gain of 116 per cent in automobile registration for 1916 over the previous year, surpassed by but one state in tho Union. 'fhe prices of necessities continue upward and the situation in this respect is anything but reassuring. As an instance of this, one point in the district reports that wholesalers are offering $2.75 per bushel for: Irish potatoes a1;1d find the response scant. Freight congestion in the East has resulted in embargoes by several railway lines radiating this territory, aud, as a co.11Sequeuce, there are many reports of congestion in the yards, and freight officials do _ not anticipate an immediate bcittr.rmont. It is estimatAd that there arc 30,000 cars on western roadi,i destined east which cannot he moved. Fortunately these embargoes do not include perishable goods, food, fuel, live-stock and oil shipments, but this situation, coupled with the car shortage, is a serious deterrent to business in many lines. LUMBER Tho car shortage also continues to hamper this industry, and has curtailed shipments anywhere from 25 to 50 p,;ir cent, depending upon the line on which mills are located, and this has had a tendency toward higher prices. The steady increuse in building permits has been lessened in some qnarters by reason of unfavorable weather, which ha.a naturally uifected the wholesale and retail lumber trade. Contract work out for hids has been favorahle in totals, but few large jobs are reported, the greater number being medium sized projects. Much work of importance is under contemplation and the future would seem unsually favorable. LABOR Very few labor disturbances are reported, and those affect but small uumhers and arc strictly local. FINANCIAL If there had been any disturhanee of the money situation due to existing international complications, it is not sufficient to eause uneasiness. Banks in this district are in a strong position and well fortfied to meet any unusual development. Disconnt rates remain practically tile same. 'l'herc is doubtless no better indicution of general business activities than reports of hank clearings and that the year has opened with a flying start is evidenced by the fact that the total clcurings for January in the fifteen most important cities in Federal Reserve District No. 10 showed an average increase of 55.5 per cent over the month of January, 1916, the lowest percentage in the list being 24.4 per cent and the highest 145.6 per cent. Reports at hand show further noticeable increases in postal receipts, as compared with last year. Statc,ment of Condition of FEDERAL RESERVE BANK OF KANSAS CITY, At Close of Busines~ February 16, 1917, RESOURCES. Gold Coin and Certificates ............... •............... ......•.. .•... . $ 7,618,666.00 Credit balances In Gold Settlement Fund . .. . ..... , . . . . . . . . . . . • . . . . . . . . . . 26,686,600.00 Legal Tender Notes, Silver Certificates and Subsidiary Coln .... . ........ . 90.396.00 Total Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • . • . . . . . . . . • • ... $33,395,660.00 Commercial Paper (re-discounts) .......... ........... , , , ... , , • , •••.. .... $ 489,368.44 Member Banks' Collateral Notes .......... . ... , •.• , ..•.•.....••.•..•...•• Acceptances............................ . ...•••.•.••• , . , • • . • • . . • . • . . . . . 4,357,444.02 U. S. Bond,s ............................ . . , .••. , ...•.•••. , ..•..•.•.•. , . 8,517,850.00 s. Gold Notes ........................ .• ••.. ..•....................• 963,000.00 Municipal Warrants ........•............ ....•.............. ...... ... .. 339,880.24 Due from other Federal Reserve Banks-net. ....... . ....••............... 568,654.66 All other Resources ...................... . ..•.... . • ... , • , • • .... , ....... . 509,407.30 Due from Treasurer U. S. (Government Deposits) . . . ... . ............... . 670.419.21 U. Total Resources ............................................•....... $49,711,473.87 LIABILITIES. Capital pald ln ................ . ...... . ... , •....•....•....•.....•....... $ 3,074,000.00 Reserve Deposits-net ................. ...•....•..•••...•... , ..... , ••.• 43,947,138.87 Federal Reserve Notes-net. . . . ........ .••. , .•........................• 2,690,33G.OO Federal Reserve Bank Notes-net .... .•.• •....•••.•••• , •••••.•• , .•.•.. Due to other Federal Reserve Banks-net ....... ..... ......... , ...•...... Total Liabilities ...• , ••. , , • , , .•••• , •• , • , , •••..••••.•....... . ... .... . $49,711,473.87 MEMORANDUM. F. R. Notes isaued to the bank ..... . ................................ .... $21,954,135.00 F. R. Notes in hands of Bank..... ............. . .................. ...... 514,665.00 F. R. Notes Outstanding.......... . .............•...•. , •.•. , •... , .. . ... 21,439,470.00 Gold and Lawtul Money with Agent . .... , ............................ .... 18,749,135.00 Net Liabillty Account of F. R.. Notes .............................. ....... 2,690,335.00 CLEARINGS, Total Clearings !or week .............. ... , ....... , ......... •• ...••...• . $37,486, l 46.64 Total Numbel' of items handled........ ............................... . 72,635
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