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MONTHLY
REVIEW
Agricultural and Business Conditions
TENTH FEDERAL RESERVE DISTRICT
VoL. 23,
o.
FEDERAL RESER.VE BANK OF KANSAS CITY
2
!
i
---------i...--.•:
Denver•
COLO.
·--------KANSA
:'
I
I
I
KANS.
·-··-•--,,..-.. -....... _.:,I __ _
With the approach of spring
the chief interest in the Tenth
District is in another growing
season. This District has been
in the heart of the droughtstricken area and this protracted
drought has made profound changes
in certain crop and live stock
conditions.
The accompanying charts show
the changes in wheat and corn
and hogs and cattle in the seven
states. The solid line shows production or numbers and the broken
line shows value. The value, of
course, is the product of the
solid line and the average price.
Short corn crops and increased
wheat acreage account for the
changes in production of corn
and wheat. Farmers are experiencing better results with wheat
as it matures before the extreme
heat and dry weather of late
summer. The value of wheat has
risen with production which indicates steady prices resulting
from low world supplies.
On page 7 will be found a table
showing the number of live stock
on farms in these states. The
largest reductions in hogs have
occurred in Nebraska and Kansas.
These two states also account for
the bulk of the decline in cattle,
although New Mexico and Wyoming
also show large declines.
The charts also emphasize the
great importance of prices. Corn
production in recent years is only
a third of the large crop of 1932,
but the value is greater. Hog
numbers are only 40% of what
they were and cattle numbers
are down greatly since 1934, yet
higher prices have more than
compensated for reduced numbers.
Recent changes in the charts
also show how the present sharp
business recession with its serious
decline in raw-material prices has
affected the value of farm products.
The broken lines showing value
also make it clear why farm income
in these states has risen in recent
years. Farm income in 1932 was
only half that of the years preceding 1930. It has risen about 75%
since 1932, a further rise depending
on future production and prices.
The approaching growing season will naturally bring important
changes in this picture. The number of hogs is closely related to
corn production and this question
at the moment is of greatest
interest to Nebraska. The shift
from corn to wheat has been
most marked in Kansas and while
this state has one of its largest
wheat acreages the condition of
the crop is only fair.
FEBRUARY
28, 1938
Grain and Live Stock
Seven States in the
Tenth District
WHEAT
MILLION BUSHELS
MILLION DOLLARS
280
3~0
CORN
MILLION BUSHELS
MILLION DOLLARS
eoo , - - - . . . . . - - - - - , - - - ~ - ~ - - 2 e o
HOGS
MILLION HEAD
17
MILLION DOLLARS
120
90
II
1933
19;.4
193~
1938
11137
CATTLE
MILLION HEAD
20
MILLION DOLLARS
eoo
12 _ _ _ _ _ _ _ _ _ _.___.___._____,200
11132
11133
1934
1113~
IUf
11137
11138
REVIEW OF AGRICULTURAL AND BUSINESS CONDITIONS
2
declining almost steadily since early in 1936, rose slightly
during the four weeks. Federal Reserve note circulation
Generous moisture in the third week of February of this bank is higher than a month ago although about
has greatly improved the outlook for winter wheat and 4¾ million dollars below the peak of last December.
ranges and pastures in the District. Retail sales are
Principal items of condition of the Federal Reserve
somewhat lower than a year ago and wholesale sales
Bank of Kansas City and branches:
are sharply lower. Construction activity is also much
Change from
Feb. 16
Jan. 19
Feb. 17
below a year ago. Output of flour is smaller but live
1938
1938
1937
stock slaughter and petroleum production are little
(In thousandsof dollars)
changed from last year. Grain and live stock market- Total reserves--····························· 295,762
+4,248 +33,436
870
-122
+811
ings are in moderate volume at recently higher prices. Bills discounted___._.........................
Bills purchased...............................
16
Zero
-71
Demand deposits are down slightly and both loans and Industrial advances................. ·-·····
488
+27
-269
99
-2
-114
investments continue to decline. Employment is about Commit. to make indust. adv.......
U.S. Government securities..........
132,104
Zero
+5,503
6 and pay rolls 3 per cent below a year ago.
Total resources ---···············-' ········469,902
+6,789 +38,203
Summary
F. R. notes in circulation·---·········
Member bank reserve deposits......
Member Bank Operations
165,392
242,324
+84
-654
+5,431
+22,092
Dollar volume of check collections in January was
Loans and investments of reporting member banks
about
4 per cent smaller than a year earlier and conin the Tenth District continued to decline from the midtinues
below
a year ago in February.
dle of January to the middle of February. Commercial
Check
collections
through this bank and branches:
loans dropped nearly 5 and holdings of Government
Items
Amount
direct obligations 3 per cent during the four weeks.
--(In thousands)
Volume of loans is still about 7 per cent larger than a January 1938.._............................ .
6,628
$ 902,975
6,316
1,002,096
year ago but investments have declined more than December 1937............................
6,422
94.4, 733
January 1937·-·························· .. .
16 per cent.
Adju~ted de~and.-deposits at the-middle-of February Bank Debit■
were slightly higher than a month earlier. CorrespondDebits to individual accounts by banks in reporting
ent balances of these banks carried with other banks centers of the District were about 7 per cent smaller
continue to increase but deposits of other banks with in January than a year ago as compared with a decrease
these reporting banks are lower. Adjusted demand of nearly 19 per cent for the country as a whole.
deposits are about 3 and interbank deposits 13 per
Payments by checkin thirty District cities:
cent lower than a year ago.
Change from
Jan. 1938
Dec. 1937 Jan. 1937
Principal items of condition of 51 member banks:
Loans and investments-total
Loans-total
---·······
Cornl., indust., agric ...................... .
Open market paper·- --···················
To security brokers and dealers....
Other to purchase or carry secur ...
~~l!t!ns._ : ~:~ : :~ ~ ~ ~··~~·· ·
Investments-totaL.-................... .. . ....
U.S. Govt. direct obligations. ___ .
Oblig. guar. by U.S. Govt ...·-·······
Other securities.........·-·····················
Reserve with F. R. Bank
Balances with domestic banks
D_emand deposits-adjusted ............... .
Time deposits ..................................... .
U. S. Govt. deposits......................... .
Interbank deposits.·-·········-·················
*Comparable figures not available.
Change from
Feb. 16
Jan. 19
Feb. 17
1938
1938
1937
(In thousandsof dollars)
647,742 -13,339 -59,529
260,002
-9,081 + 16,188
163,167
-8,259
•
18,700
+268
*
3,772
-104
-1,702
12,355
-73
•
21,001
+152
+2,575
514
-184
-954
40,493
-881
*
387,740
-4,258 -75,717
227,183
-6,308 -48,117
45,396
+1,055
-3,347
115,161
+995 -24,253
169,314
+1,200 +21,301
235,361 +11,452 -18,845
485,990
+5,206 -13,761
144,680
-276
-1,493
13,586
-20
+4,651
346,761
- 6,584 -51,534
Reserve Bank Operatioll8
Holdings of bills discounted for member banks declined. slightly further from the middle of January to
the middle of February but, while small. continue much
above a year ago. Industrial loans, which had been
(In thousands of dollars)
Albuquerque, N. Mex ........ .
Atchison, Kans.·---············Bartlesville, Okla.................
Casper, Wyo.·--···················
Cheyenne, Wyo ..... ·-···········
Colorado Springs, Colo .._...
Denver, Colo ....-·····-············
Emporia, Kans.·--···············
Enid, Okla,.---···--················
Fremont, Nebr.................... .
Grand Junction, Colo .........
Guthrie, Okla.·-···················
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, Kans .................. .
Pueblo, Colo•... -·-·················
Salina, Kans .........................
St. Joseph, Mo .....................
Topeka, Kans.·-···················
Tulsa, Okla .......................... .
Wichita, Kans .................... .
District, 30 cities·---···········
U. S., 141 cities....................
14,027
2,989
27,332
6,138
7,520
14,591
148,227
3,184
11,331
2,399
3,509
1,870
10,885
3,120
9,722
18,049
311,993
3,720
26,887
8,278
110,079
2,612
141,924
4,273
15,060
8,332
28,984
17,207
154,639
46,762
-2,476
-881
-7,088
-905
-1,717
-1,428
-22,696
-82
+141
-356
-450
-175
-1,238
+338
-967
+944
-41,439
-554
-4,063
-654
-11,955
-584
-15,893
-657
-3,374
-2, 738
+ 1,605
+965
-37 ,587
-1,849
-887
-716
+1,482
+369
-716
- 1 935
-26;806
-385
+1,489
+89
-50
-51
- 1,523
+ 194
-205
+818
-37,811
+102
- 1,067
- 720
-2,560
-332
-8,614
-44
-5,898
-61
-1,582
-3,077
+8, 739
-647
1,165,643
-157,813
-82,405
32,073,499 -7,029,090 -7,405,278
FEDERAL RESERVE BANK OF KANSAS CITY
8
Retail_sales reported by the Department of Commerce:
Trade
DEPARTMENT STORE SALES
Dollar volume of sales at reporting department stores
in the District declined by about the usual seasonal
amount from December to January and was little
changed from that in January of last year. Preliminary
reports for the first three weeks of February indicate
a decrease of 8 per cent from sales in the corresponding period of 1937. Sales are fair in Oklahoma but
are generally sharply lower elsewhere in the District.
Retail prices continued to decline through January,
falling below a year earlier for the first time since
October, 1935.
Stocks of merchandise declinedl by-:·somewhat more
than the usual seasonal amount during January and are
about 4 per cent lower than a year ago. Collections
on open accounts averaged 46.0 per cent of receivables
in January as compared with a ratio of 46.7 per cent
a year earlier, while installment collections averaged
14.2 and 14.5 per cent, respectively.
Department store sales and stocks in leading cities:
SALES
No. of
Stores
Denver............................
Kansas City·--···············
Oklah ma City..............
Omaha............................
Tulsa __ ···························
Wichita._.........................
Other cities.---···············
4
4
3
3
4
3
18
District._.... .....................
39
STOCKS
Jan.'38
Jan.31,'38
comp.to
comp. to
Jan.'37 Dec.31,'37
Jan.31,'37
(Per cent increase or decrease)
-3.1
-1.8
-1.3
-3.7
-4.5
-14.8
+5.5
-11.5
+ 1.3
-1.9
-12.0
+1.6
+11.0
-7.7
-1.3
-1.7
-12.6
+0.7
+0.2
-7.2
-5.8
-0.6
-6.5
-4.3
RETAIL SALES
COLORADO·
Denver..................................
Pueblo -·······························
Colorado Springs. ___ ···········
Boulder --·····························
Fort Collins......................... .
Greeley ................................ .
No.of
Firms
·--(In
53
29
34
21
12
14
Sales
1937
thousands
8,384.9
4,081.6
3,241.7
1,405.6
1,149.4
2,116.8
Sales
1936 Change
of dollars) (%)
8,793.6 -4.6
3,849.3 +6.0
2,933.5 +10.5
1,394.1 +0.8
1,137.6 +1.0
2,166.2 -1.8
KANSAS
Kansas City·--·····················
Wichita __ ............................ .
Topeka....•-···························
Hutchinson..____ ···················
Lawrence.·-·····-···················
Pittsburg.. _..........................
25
28
23
13
13
12
1,240.4
4,151.5
4,307.4
1,872.4
L940.5
963.0
1,335.8
4,131.6
4,158.3
1,889.2
929.0
953.0
-7.1
+0.6
+3.6
-0.9
+1.2
+1.0
90
31
18
23,799.3 22,885.0
3,294.2 3,464.1
3,980.7 3,834.6
+4.0
-4.9
+3.8
49
32
11,767.7 12,373.7
6,372.4 6,256.2
-4.9
+1.9
MISSOURI
Kansas City._ ...................... .
St. Joseph. ___ ·······················
Joplin ....................................
NEBRASKA
Omaha..................................
Lincoln ..................................
NEW MEXICO
Albuquerque ........................
12
2,980.4
2,746.4
+8.5
Oklahoma City....................
Tulsa ······-······-···················
Muskogee·-··-·······················
28 q :.. 12,221.2 11,803.7
13J ,,
5,473.3 5,319.0
13
1,320.9 _1,253.4
+3.5
+2.9
+5.4
Casper --·······························
Sheridan.. ·-···························
17
16
+0.6
+0.7
OKLAHOMA
WYOMING
2,857.7
1,207.4
2,843.3
1,199.4
WHOLESALE SALES
The value of January wholesale sales in this District
was about 19 per cent lower than in the preceding
month and 11 per cent lower than in January of last
year. Sales of nearly all groups declined during the
month and only groceries and paper showed an increase
over a year ago. Wbolesale prices continued to decline
in January and the first week of February.
Wholesale sales and stocks reported by the Department of Commerce for this District:
January sales of independent retail stores in the DisSALES
STOCKS
trict were about 5 per cent lower than a year ago. HowJan.'38
Jan.31,'38
ever, Oklahoma sales were somewhat better than last
No.of comp.to
comp. to
Firms Jan.'37 Dec.31,'37 Jan.31,'37
year and sales at apparel, department, furniture, and
(Per cent increase or decrease)
hardware stores in Kansas and Missouri showed increases. Automotive supplies·--···
3
-34.1
8
-8.3
+3.6
-3. 7
Sales of independent retail stores reported by the Drugs.. ·····-··-··········-·······
3
-22.4
Dry goods·---··-··-······-···
Department of Commerce:
-4.3
+2.6
+4.7
Electrical goods·--··········· 11
Jan. 1938
Colo.
Apparel ........................
+0.4
Country general.. ........
-9.3
Department..................
-0.5
-7.2
Drug·························-···
Furn. and appliances ..
-4.4
-5.5
Grocery·--·····················
Hardware ......................
-2.4
Lbr. and bldg. mtls .... .
-2.2
Motor vehicle............. . -28.7
TotaL...........................
-9.1
per cent change
Kans.
Mo.
+4.6
-1.9
-9.1
-6.1
+7.2
+0.8
-3.4
-1.1
+16.7
+1.8
-11.3 -10.4
+2.9
+5.0
-4.7
-3.5
-6.7 -30.6
-3.6
-4.9
from Jan. 1937
Nebr.
Okla.
4.8
+4.0
-14.0
-4.5
-4.4
+6.1
-6.6
+6.6
-17.9
+9.9
-8.6
-9.4
-3.5 +18.1
-22.0 +54.8
-10.3 +15.2
-8.1
+6.8
Department of Commerce figures of retail sales in
1937 in larger centers of the District are now available. These figures, shown in the table below, cover
the larger independent stores in approximately twenty
kinds of business.
Groceries ......................... .
Hardware
General_.......................
Industrial supplies.......
Plbg. & htg. supplies..
Paper·---···························
All other lines ..................
8
+4.6
5
6
4
3
9
-15.8
-52.0
Zero
+0.8
-0.3
+3.8
-0.9
-0.5
+4.4
+1.5
+16.2
TotaL...............................
60
-11.2
+2.0
+7.0
Lumber
Board feet sales of lumber at reporting retail yards
in the District increased 12 per cent from December to
January but fell slightly below sales in January of
last year.
Collections on amounts outstanding averaged 33.0
per cent in January, 34.5 per cent in December, and
40.1 per cent a year ago.
REVIEW OF AGRICULTURAL AND BUSINESS CONDITIONS
Lumber trade at 155 retail yards in the District:
January 1938
per cent change from
December 1937
January 1937
Sales of lumber, boar.d feet ....
+12.3
-2.4
Sales of all materials, dollars
+12.5
- 2.5
Stocks of lumber, board feet ..
+0.7
- 5.1
Out.standings, dollars ..............
-3.3
+18.0
Building
In January construction awards dropped 21 per cent
under a year ago, largely as a result of sharply lower
residential awards. Awards for other types of building showed little change.
Construction figures of the F. W. Dodge Corporation:
37 EASTERN STATES
TENTH DISTRICT
January 1938............
December 1937........
January 1937.__.......
Total Residential
(In thousands
7,631
1,474
8,554
1,226
9,694
3,486
Total Residential
of dollars)
195,472 36,207
209,451
43,480
242,827 78,407
The value of building permits issued in reporting
District cities during January was 14 per cent greater
than in the preceding month and 8. per cent greater
than in January of last year.
Building permits issued by eighteen District cities:
PERMITS
Albuquerque, N. Mex .......
Cheyenne, Wyo .......·-·······
Colorado Springs, Colo.._.
Denver, Colo.....................
Hutchinson, Kans .............
Joplin, Mo .........................
Kansas City, Kans ...........
Kansas City, Mo.·-···········
Lincoln, Nebr.·-············- ···
Oklahoma City, Okla.......
Omaha, Nebr.......·-··-·······
Pueblo, Colo.·-··········- ·······
Salina, Kans •......................
Shawnee, Okla..... ·-···········
· St. Joseph, Mo.·-···············
Topeka, Kans··--···············
Tulsa, Okla---··- ··- ···········
Wichita, Kans._ ................
January_ __
ESTIMATED COST
1938 1937
1938
1937
42 ~ $ 62,000 $ 85,000
31
15
50,000
16,000
38
29
41,000
32,000
262
197
265,000
228,000
45
27
239,000
8,000
7
12
7,000
33,000
17
8
7,000
4,000
104 140
278,000
241,000
63
28
43,000
27,000
170 146
462,000
303,000
38
19
26,000
71,000
36
26
25,000
58,000
11
3
26,000
9,000
15
5
10
30
68
127
13
18
60
57
1,114
843
8,000
6,000
33,000
94,000
155,000
2,000
13,000
19,000
419,000
112,000
$1,817,000 $1,680,000
Employment and Pay Rolls
Employment and pay rolls in the District declined
about 7 per cent from December to January. Employment was about 6 per cent lower than a year ago but
pay rolls show a decrease of only 3 per cent.
Preliminary.~ figures of the Department of Labor:
Colorado ·-···········--·-·······················
~~.:::::::::::::::::::::=::::::::::::::~::::
Nebraska.·--···-··-··············-······-···
New Mexico·--··········-··- ···············
Oklahoma___ ··················-···············
Wyoming·······-··-············-··-··-··-···
January 1938
per cent change from
December 1937
Employment
Pay Rolls
-14.7
-15.8
-4.1
-3.4
-6.2
-4.3
-9.7
-7.4
-6.0
-8.9
-2.6
-3.2
-8.8
-21.7
Meat Packing
Cattle slaughter in January was about 5 and hog
slaughter about 19 per cent heavier than a year ago,
while calf and sheep slaughter showed decreases of 24
and 16 per cent, respectively. Hog slaughter, notwithstanding the increase, still was 37 per cent below
the January ten-year average and sheep slaughter was
20 per cent below average. Cattle slaughter exceeded
the average by about 2 and calf slaughter by 7 per cent.
Packers' purchases at six markets in the District:
Denver..........................
Kansas City·-···············
Oklahoma City............
Omaha..........................
St. Joseph. ___ ···············
Wichita·-·······················
Cattle
15,744
60,216
27,516
68,329
23,536
12,808
Calves
3,265
15,295 ·
10,147
7,428
3,998
4,510
Hogs
32,486
163,920
29,178
175,192
73,494
21,704
Sheep
28,916
74,353
8,341
90,066
83,377
13,183
Jan. 1938......................
Dec. 1937......................
Jan. 1937......................
208,149
188,977
198,679
44,643
44,791
58,769
495,974
383,200
415,703
298,236
219,629
353,182
Petroleum
Daily average production of crude petroleum continues to decline, reflecting the adjustment of crude
output to refinery operations that have been greatly
curtailed because of mounting gasoline stocks and weakness in prices of refined products. With a further
reduction in output, stocks of crude petroleum are tending downward. J anuary production, while about 4
per cent lower than a year ago, was still high, being 18
per cent above the January ten-year average.
Oil production reported by the American Petroleum
Institute and the Bureau of Mines:
January 1938
Gross D. Av.
-
Colo...............
Kans.·- -·········
N. Mex.........
Okla...............
Wyo...............
136
5,567
3,320
16,860
1,524
5 States·---···
27,407
December 1937
January 1937
Gross D . Av. Gross D. Av.
- (In thousands of barre~
4.4
133
4.3
112
3.6
179.5
5,529
178.4
5,300
171.0
107.1
543.9
49.2
3,370
17,653
1,509
108.7
569.5
48.7
2,774
18,767
1,439
89.5
605.4
46.4
884.1
28,194
909.6
28,392
915.9
u. s............... 106,514 3,436.0 106,579 3,438.0 98,567 3,179.6
Leasing activity is widespread in western Kansas
at the present time. A large number of leases in Kansas
already in effect bear 1938 expiration dates and indicate
that many wells will be drilled this year.
Flour Milling
January output at southwestern flour mills was 7
per cent smaller than in the preceding month and nearly
13 per cent less than a year ago, production falling 8
per cent under the January ten-year average. With
a small volume of new business and only fair shipping
directions on flour already contracted for, much of it
at higher prices than those now prevailing, milling operations are averaging little better than 63 per cent of fulltime capacity. Recent advances in flour prices, however,
FEDERAL RF'8ERVE BANK OF KANSAS CITY
5
have improved shipping directions somewhat. Prices Crops
for by-product millfeeds also are higher.
The moisture situation has improved materially with
Flour production reported by theNorthwesternMiller: the rains, sleet, and snow which fell over many sections
Change from
Jan. 1938
Dec. 1937
Jan. 1937 of the District in the third week of February. Unusually high temperatures were starting winter wheat
(In barrels)
City________________________ _
566,000
-41,000
+11,000 and precipitation was urgently needed to prevent a
-24,000
152,000
-36,000
-36,000 rapid decline in condition, subsoil moisture being short
Wichita................................. .
162,000
-24,000
996,000
-220,000 generally and surface moisture being acutely deficient
-44,000
Other cities*---·····················
Southwest.---·······················
1,876,000
-145,000
-269,000 in western Kansas and adjoining· parts of other states
United States**·-·················
5,055,000
-241,000
-370,000 where the crop has been damaged by high winds and soil
*Includes Atchison heretofore carried separately.
••Represents about 60 per cent of total output in United States. blowing. Since last fall, precipitation in Nebraska
and Kansas has been more than 30 per cent below normal.
Zinc and Lead
While a large part of the wheat acreage in southwestern
January shipments of zinc from the Tri-State district Kansas has already been completely destroyed or is
were little changed from a year ago but lead shipments in very poor condition, the crop is fair to good in the
increased about 27 per cent. Lead ore production is eastern parts of Nebraska and Kansas and in central
at a good rate and output of zinc, while considerably Oklahoma where wheat got a better start last fall and
has had the benefit of fairly satisfactory moisture.
below normal, is increasing.
Shipments estimated from Joplin News-Herald reports:
f:i~:s
Grain Marketing
ZINC ORE
LEAD ORE
Kansas ............................. .
Missouri ........................... .
Oklahoma......................... .
Tons
Value
11,948 $ 348,150
3,077
89,633
17,095
498,110
Tons
1,175
744
1,661
Value
$ 62,534
39,343
88,409
Jan. 1938..........................
Dec. 1937..........................
Jan. 1937..........................
32,120 $ 935,893
36,916 1,082,670
31,909 1,107,631
3,580
7,763
2,825
$190,286
410,309
195,704
Lead prices had risen about $2 a ton in the first two
weeks of January but declined almost $6 in the second
week of February when zinc prices also dropped $2 a
ton. Prices of both ores are substantially lower than
a year ago.
Farm Income
Final figures for 1937, shown in the accompanying
table, indicate that receipts from the sale of crops furnished about 32, live stock and its products about 62,
and Government rental and benefit payments about
6 per cent of total cash farm income in the District.
Comparable percentages for the United States are 46,
50, and 4, respectively. However, in Missouri, Nebraska
Wyoming, and New Mexico, the proportion of total
income received from live stock was about 70 per cent
or better, and in Kansas and Oklahoma the proportion
received from crops exceeded 40 per cent.
Income estimates of the Department of Agriculture:
Live Stock
Govt.
and Products Payments
(In thousands of dollars)
49,669
90,907
4,974
142,728
176,352
18,512
64,331
193,594
13,298
60,801
173,641
17,468
12,504
35,811
3,067
76,570
14,665
85,348
11,725
40,064
1,307
Crops
Colorado__________ ·-···
Kansas ....................
Missouri... ...............
Nebraska ...... ·-··-···
New Mexico·--··-···
Oklahoma. __ ...........
Wyoming................
418,328
Seven states·--··-···
United States. ___ ··· 3,882,000
795,717
4,272,000
73,291
367,000
Total
1937
145,550
337,592
271,223
251,910
51,382
176,583
53,096
1,287,336
8,521,000
Marketings of wheat and corn during January,
while about 19 and 12 per cent, respectively, below
the January average of the past ten years, were substantially heavier than a year ago. Receipts of oats
were sharply lower than a year ago but, even so, were
11 per cent above average. In view of the relatively
small farm reserves of grains in this District on January
1 when compared with average holdings from 1928 to
1932, marketings were generally in good volume.
Receipts of grains at five markets in the District:
Wheat
Hutchinson. ___ ···
Kansas City·--···
Omaha ................
St. Joseph. __ ·······
Wichita... _...........
763
3,515
655
370
1,176
Corn
Oats
Rye Barley Kafir
~ thousands of bushels)
1
4
9
2,136
190
8
60
207
2,349
318
106
8
730
472
1
9
30
5
12
Jan. 1938...... ·-···
Dec. 1937............
Jan. 1937.......-...
6,479
6,411
3,907
5,246
7,372
2,307
980
774
1,302
176
216
15
16
100
57
237
92
97
Cash grain prices had strengthened in December and
wheat prices continued to increase in January, influenced
principally by unfavorable domestic crop prospects and
firmer markets abroad, but corn prices lost much of
their December advance with a slackening in export
demand. Federal corn loans up to the first week of
January averaged slightly less than 49 cents per bushel.
In the first three weeks of February, wheat and corn
prices showed little net change.
Cash grain prices at Kansas City:
No. 1 hard, dark wheat, bu.......
No. 2 mixed corn, bu.................
No. 2 white oats, bu...................
No. 2 rye, bu...............................
No. 2 barley, bu.·----··················
No. 2 white kafir, cwt.·--···········
Feb. 23 Jan. 31 Dec. 31 Jan. 30
1938
1938
1937
1937
$ .99 ½ $ .99 ¾ $ .94¾ $1.31½
.55 ¼
.55
.58
1.18½
.32½
.32
.31½
.55
.71½
.70
.68
1.10
.49
.92
.56
.55
.97
2.04
.88
.92
6
REVIEWi,OF AGRICULTURAL AND":BtJSINE&g CONDITIONS
Llve Stock
MARKETINGS
Marketings of cattle in January were about 2 and hogs
17 per cent heavier than in January of last year, but
receipts of calves and sheep fell 9 and 17 per cent,
respectively, below a year ago. Cattle marketings were
6, hogs 44, and sheep 19 per cent below the January
ten-year average, while calf receipts exceeded the average by 19 per cent. Plentiful feed supplies have prevented any forced liquidation of live stock such as in
recent drought periods but a rather large volume of
fed cattle and lambs is moving to market from Colorado
and western Nebraska.
Live stock receipts at six markets in the District:
Cattle
45,492
118,239
40,921
97,806
30,553
23,911
Calves Hogs
Sheep
1,221 46,457 I 126,129
25,159 173,405 108,616
16,493 33,435 10,968
9,158 197,902 119,922
4,815 81,175 91,030
5,164 23,702 13,916
Jan. 1938______________________________________ 356,922
Dec. 1937_________________________________ _____ 330,770
Jan. 1937 ______________________________________ 349,418
68,010 556,076 470,581
64,048 441,442 328,803
74,555 474,422 565,583
Denver _________________________________________ _
Kansas City_______________________________ __
Oklahoma City__________________________ __
Omaha ____________________________ _____________ _
St. Joseph.. ______________ ------------------·--Wichita. _______________________________________ _
PRICES
Prices of beef steers, feeder cattle, and lambs continued
to decline throughout the greater part of January,
while prices of hogs and stocker cattle advanced. The
top price for cattle was the lowest for any January
since 1934, for hogs since 1935, and for lambs since
1933. The present margin between stocker and feeder
cattle and fat cattle is unusually narrow and beef steers
and heavy hogs are selling at a discount. Reflecting
the improved feed situation, prices of stocker cattle are
only slightly lower and stock pigs are even higher than
a year ago in contrast with the sharp decline in prices
of slaughter live stock. Contributing to the lower
prices of slaughter live stock are declines of 30 per cent
from a year ago in prices of hides and lard and a decrease
of 40 per cent in wool prices. In the first three weeks
of February, cattle and lamb prices recovered most
of their January loss and hog prices were little changed.
Top prices of live stock at the Kansas City market:
Beef steers__ _____________ _
Stocker cattle________ _
Feeder cattle ___________ _
Calves_______________________ _
Hogs _________________________ _
Sheep _______________________ _
Lambs______________________ _
Feb. 23 Jan.
Dec.
Jan.
Jan.
1938
1938
1937
1937 1936
(In dollarsper hundredweight)
9.25 10.00 11.25 14.00 12.50
8.35
8.25
7.65
8.35
9.00
8.00
7.75
8.20
9.50
9.00
10.00
9.50
9.50 12.00 11.00
8.75
8.85
8.40 10.50 lo.40
5.25
5.75
6.60
8.00
8.00
8.10
8.35
9.25 10.65 10.85
Jan.
1935
13.00
7.60
8.50
10.00
8.30
7.35
9.35
STOCKERS AND FEEDERS
Shipments of stocker and feeder live stock to the
country during January were unusually light, shipments of cattle falling 20, calves 4, hogs 58, and sheep
38 per cent below the January ten-year average. Only
hogs:-moved to::the _country in larger numbers than in
January of last year. The hog-corn ratio remains
favorable but cattle and lambs are being marketed
from some of the principal western feeding areas at
losses of as much as $35 to $40 a head for cattle and $2
to $3 for lambs, feeders having purchased thin stock
last year at a higher price than that which the finished
animal now brings on the market.
Stocker and feeder shipments from four markets:
33,361
11,408
3,483
Calves
3,805
4,492
1,568
755
1,515
991
746
Sheep
6,663
16,845
13,212
6,421
65,665
69,545
70,139
10,620
9,479
10,764
3,364
3,109
3,159
43,141
38,324
57,813
Cattle
Denver__________________________
Kansas City_________________
Omaha__________________________
St. Joseph ____________________
~
Jan. 1938____ __________________
Dec. 1937______________________
Jan. 1937______________________
Hogs
113
Approximately 1,265,000 lambs were reported left
in feed lots of the Northern Colorado, Arkansas Valley,
and Scottsbluff feeding areas on February 5 as compared
with 1,100,000 a year ago and 1,295,000 two years ago.
Of this total, Northern Colorado had 735,000 head,
the Arkansas Valley 165,000 head, and the Scottsbluff ·
section 365,000 head.
The generally mild, open winter has permitted good
use of ranges and pastures, and supplemental feeding
of live stock has not been heavy except in limited areas
of extremely short f~d. Range feed continues rather
poor over much of the western parts of Nebraska, Kansas,
and Oklahoma and in eastern Colorado because of the
prolonged shortage of soil moisture. Wheat pastures
have provided but little pasturage in Oklahoma, western Kansas, and eastern New Mexico.
The mild weather has been unusually favorable for
live stock and cattle and sheep on the range are wintering well. Except in the driest portions of the Great
Plains, live stock is in good condition, with less than
the usual shrinkage reported in marked contrast to the
heavy shrinkage during the severe weather of January,
1937. Death losses have been light.
LIVE STOCK ON FARMS
The number of all cattle and calves on District farms
showed a further decline of about 4 per cent from January 1, 1937, to January 1, 1938, milk cows and heifers
3, hogs 0.5, horses and colts 4, and mules and mule colts
5 per cent. The decline in hog numbers was in contrast
with an increase of better than 3 per cent for the United
States and decreases in numbers of other live stock were
relatively larger in this District than in the country
as a whole. The number of sheep, including sheep and
lambs in feed lots, increased 4 per cent as compared
with an increase of 0.6 per cent for the United States.
The value of all cattle was 4, milk cows 8, and sheep
7 per cent larger than a year ago. The value of hogs
was 4, horses 17, and mules 13 per cent lower.
F$DERAL RESERVE BANK OF KANSAS CITY
7
LIVE STOCK ON FARMS JANUARY 1
Estimated by the United States Department of Agriculture
Number, in thousands of head
1935
Colorado____________________________
Kansas_____________________ _______
Missouri__ __________________________
Nebraska_________________________
New Mexico______________________
Oklahoma __________________________
Wyoming __ ________________________
*1938
1,554
2,607
2,497
2,824
997
2,139
820
1937
1,570
2,834
2,472
3,037
1,039
2,252
781
1936
1,510
3,149
2,658
3,491
1,039
2,422
849
1,590
3,386
2,531
3,232
1,101
2,633
858
Seven states ______________________
United Stat('S____________________
13,438
65,930
13,985
66,448
15,118
67,929
15,331
68,529
Colorado____________________________
Kansas _____________________________
Missouri__ __________________________
Nebraska________________________
New Mexico______________________
Oklahoma__________________________
Wyoming __________________________
,
Seven states ___________________ ___
United States____________________
*1938
245
765
955
629
76
713
68
1937
253
805
3,451
24,902
3,562
24,991
3,763
25,439
3,900
26,069
1937
1936
Colorado____________________________
Kansas_____________________________
Missouri__ __________________________
Nebraska_______________________ _
New Mexico______________________
Oklahoma__________________________
Wyoming __________________________
*1938
253
788
2,622
1,598
80
763
44
298
259
874
2,622
1,567
72
700
44
1,248
2,760
2,238
64
824
42
1935
268
1,200
2,400
2,034
58
800
49
Seven states ______________________
United States____________________
6,148
44,418
6,177
42,948
7,435
42,837
6,809
39,004
Colorado____________________________
Kansas____________________________
Missouri ____________________________
Nebraska __________________________
New Mexico_____________________
Oklahoma __________________________
Wyoming________________________
*1938
2,915
617
1,459
884
2,385
313
3,633
1937
2,767
559
1,373
721
2,477
245
3,592
1936
2,904
590
1,386
1,068
2,450
235
3,590
1935
2,756
845
1,332
804
2,498
365
3,599
Seven states_______ ____ ___________
United States____________________
12,206
52,918
11,734
52,588
12,223
52,022
12,199
*1938
1936
554
519
618
141
426
140
1935
278
589
524
651
144
426
146
946
684
76
728
70
Value, in thousands of dollars
.ALL CATTLE AND CALVES
*1938
1934
1,773
48,987
3,860
80,988
2,875
86,570
3,980
90,535
1,560
27,270
2,750
56,197
1,050
26,466
1937
50,579
82,731
74,575
93,838
28,460
48,622
23,423
1936
45,720
94,971
88,032
119,715
29,139
55,514
26,833
1935
25,914
56,776
45,852
58,193
17,148
33,526
14,645
1934
25,709
58,672
44,275
69,650
22,152
30,525
16,800
402,228
2,264,168
459,924
2,315,847
252,054
1,385,948
267,783
1,320,340
MILK Cows AND HEIFERS KEPT FOR MILK
1935
1934
*1938
1937
248 270
300
11,270
11,638
921
34,425
866
967
33,005
1,017
1,097
1,017
42,020
35,948
720
820
30,192
30,780
750
2,888
13,268
76
75
81
26,381
21,840
766
798
838
1 3,220
78
3,400
70
69
1936
10,416
36,372
41,697
35,280
3,420
23,746
3,290
1935
6,750
22,104
22,374
20,250
2,025
14,364
1,932
1934
6,600
21,274
20,843
21,320
2,025
13,408
2,106
139,699
1,259,207
154,221
1,253,427
89,799
786,612
87,576
727,039
2,430
4,113
5,010
67
1,180
87
*1938
2,485
7,652
27,239
19,564
775
6,246
497
1937
3,369
9,615
24,744
22,088
808
5,756
517
1936
3,452
13,862
31,263
32,999
681
9,336
588
1935
1,386
5,762
10,788
12,391
258
3,139
229
1934
1,496
8,384
14,190
21,543
241
3,245
300
13,327
58,621
64,458
498,025
66,897
510,504
92,181
544,911
33,953
246,196
49,399
239,541
LAf.ms
*1938
17,741
3,599
9,888
5,160
12,369
1,780
22,963
1937
1'7,216
3,254
8,490
4,154
13,224
1,259
20,952
1936
19,821
3,713
9,352
7,511
13,378
1,293
24,328
1935
12,329
3,579
5,812
3,433
9,459
1,257
16,638
**1934
12,818
2,687
4,978
4,395
8,822
586
15,879
73,500
323,746
68,549
316,329
79,396
331,922
52,507
225,258
50,165
203,321
421
158
*1938
17,178
30,758
39,845
35,024
6,779
24,916
7,947
1937
19,623
39,214
43,594
47,335
8,318
29,145
8,982
1936
18,286.
42,269
45,483
52,956
7,496
30,175
8,423
1935
14,174
36,301
36,614
41,941
5,872
24,288
6,629
1934
12,177
32,012
31,329
38,628
5,720
22,313
5,688
2,820
12,052
162,447
1,013,960
196,211
1,134,912
205,088
1,126,457
165,819
913,870
147,867
805,994
*1938
1,365
6,681
24,219
5,326
1,197
16,610
200
1937
1,625
8,479
25,696
7,050
1,360
19,565
210
1936
1,479
9,326
26,592
7,358
1,448
22,603
198
1935
1,263
8,203
22,334
6,063
1,164
19,544
140
1934
1,188
8,400
20,328
6,142
1,045
18,318
180
55,598
548,121
63,985
593,898
69,004
563,781
58,711
478,998
55,601
407,566
17,848
74,262
417,013
2,415,690
1936
4,181
26,931
150,576
1,355,926
SWINE, INCLUDING PIGS
52,245
Nebraska________________________
New Mexico _____________________
Oklahoma____________________ ·----Wyoming __________________________
490
509
523
132
400
135
Seven states ______________________
United States____________________
2,443
11,163
2,551
11,445
2,662
11,635
2,758
11,861
Colorado____________________________
Kansas ____________________________
Missouri___ _________________________
Nebraska _____ ____________________
New Mexico_______________ _______
Oklahoma_________________________ _
Wyoming ________ __________________
*1938
~
79
225
61
15
185
2
1937
1936
1935
17
7:7
19
Missouri __ _____ ____________ _________
254
ALL SHEEP
1934
3,028
689
1,310
1,055
2,757
183
3,873
12,895
53,713
AND
HORSES AND COLTS
1937
259
521
514
569
135
417
136
Colorado____________________________
Kansas____________________________
1934
440
264
1931
297
604
531
666
143
MULES AND MULE COLTS
85
227
66
16
203
2
96
236
70
17
235
2
1934
~
104
120
75
18
247
2
264
83
19
258
3
246
Seven states ____________________ __
583
616
673
711
769
United States____________________
4,477
4,571
4,684
4,822
4,945
*Subject to revision.
**State figures computed by this bank.
8
REVIEW OF AGRICULTURAL AND BUSINESS CONDITIONS
NATIONAL SUMMARY OF BUSINESS CONDITIONS
By the Board of Governors of the Federal Reserve System
INDUSTRIAL PRODUCTION
P[ft CENT
PEA CENT
140
140
130
130
120
120
110
110
100
100
90
90
80
80
70
70
60 _ _ ___,___ _ ___.___ ____.._ _ __.__ _ _ 60
1934
1935
1936
1937
1938
Index of physical volume of production, adjusted for seasonal variation, 1923-1925 average
100. By months, January 1934 through
January 1938.
-
=
FACTORY EMPLOYMENT AND PAYROLLS
FCAGCNT
P[A CENT
120
120
110
110
100
100
90
90
80
80
70
60
70
l\.
~
J
1934
1935
60
I
I
50
50
1936
1937
1938
Indexes of number employed and pay rolls,
without adjustment for seasonal variation, 19231925 average
100. By months, January 1934
throug h January 1938. Indexes gompiled by the
United States Bureau of Labor Statistics.
=
PERCENT
110
I
10(\
90
90
_____
80
...-......,...__
-./~ " '
80
,_/70
70
PRODUCTION
~
Volume of industrial production, as measured by the Board's seasonally adjusted
index, was at 81 per cent of the 1923-1925 average in January as compared with
84 per cent in December. Output of durable goods continued to decline, reflecting chiefly considerable decreases in production of automobiles and plate glass and
a further decline in output of lumber. Steel ingot production increased somewhat, the output for January averaging 30 per cent of capacity. In the first three
weeks of February, activity at steel mills showed little change at about 31 per cent
of capacity, while production of automobiles was at a lower rate than in January.
In the textile industries, activity at silk and rayon mills in January showed a
a sharp rise from the low levels reached in December. At cotton mills, however,
there was less than the usual seasonal increase and output of woolen products continued in small volume. Shoe production, which also had been at a low rate in
December, increased considerably in January, and activity at meat-packing establishments rose somewhat further. Output of tobacco products remained at a high level,
while sugar meltings declined. At mines, bituminous coal production was considerably smaller than in December, and there was also a reduction in output of
nonferrous metals. Petroleum production continued at the high level of other
recent months.
Value of construction contracts awarded in January was smaller than in December
and somewhat below the level maintained during the last four months of 1937,
according to figures of the F. W. Dodge Corporation. Contracts awarded for public
projects increased somewhat further, while awards for private work continued to
decline, reflecting a further decrease in residential building and a sharp reduction
in awards for factory construction. In the first half of February awards for private
projects were at about the same rate as in January, while those for public work
showed a sharp decline.
EMPLOYMENT
WHOLESALE PRICES
PC:ACENT
110
The decline in business activity, which had been rapid during the last quarter
of 1937, continued in January but at a slower rate.
Factory employment and pay rolls declined substantially further between the
middle of December and the middle of January. In the durable goods industries,
decreases in employment were general and were particularly large at factories producing automobiles, steel, and machinery. Employment in nondurable goods
industries showed a somewhat smaller decline than in previous months. There
was some increase in the number employed at shoe factories and little change in
the food industries as a group, but in other nondurable goods industries employment continued to decrease. Employment on the railroads, in mining, and in the
construction industry also declined.
DISTRIBUTION
60
50
50
1934
1935
1936
1937
1938
Index compiled by the United States Bureau
of Labor Statistics, 1926
100.
By weeks,
1934 through week ending February 19, 1938.
=
MEMBER BANKS IN 101 LEADING CITIES
Department store sales showed a seasonal decrease from December to January,
while sales at variety stores and mail-order sales declined by more than the usual
seasonal amount.
Freight carloadings continued to decline in January, reflecting principally a
reduction in shipments of coal.
COMMODITY PRICES
Prices of steel scrap and nonferrous metals declined from the middle of January
to the third week of February, following some advance in December and the early
part of January. There were further decreases in some other basic commodities,
while prices of cotton and silk advanced. Live stock products continued downward
and a number of finished industrial products declined further. Prices of pig iron
and most finished steel products have been reaffirmed for second quarter delivery.
BANK CREDIT
'34
1935
1936
1937
1938
Wednesday fi g ures for reporting member
banks in 101 leading cities, September 5, 1934,
through February 16, 1938. Commercial loans,
which include industrial and agricultural loans,
represent prior to May 19, 1937, so-called "Other
loans" as then reported.
During the first three weeks of February excess reserves of member banks were
little changed from the level of $1,400,000,000 reached at the end of January following the post-holiday return of currency from circulation.
During January there were substantial reductions in commercial loans and brokers'
loans and moderate increases in investments at reporting member banks in 101
leading cities. In the first three weeks of February loans and investments of these
banks showed little change.
@FedFRASER