Full text of Economic Review (Federal Reserve Bank of Kansas City) : January 1, 1927, Vol. 12, No. 1

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THE MONTHLY REVIEW
Of Agricultural, Industrial, Trade and Financial
Conditions in the Tenth Federal Reserve District

FEDERAL

RESERVE

BANK

OF

KANSAS

CI TY

M L. McCLURE, Chairman and Federal Reserve Agent
A. M. McADAMS, Assistant Federal Reserve Agent and Secretary

Vol.

12

KANSAS CITY,

Mo.,

C

O TINUED heavy industrial operations, the output for
some industries surpassing former high records, and a
sharp upturn in the volume of trade following a recession early in autumn were features of the situation in the
Tenth Federal Reserve District at the close of 1926. Official
returns for the full 12-month period may not be completed
for several days, but the value of checks 'cashed at banks in
thirty cities to the middle of December and other statistical
data available indicated the grand total of business for the
year would exceed the high mark attained in 1925. With con-

STATISTICAL RECORD, TENTH FEDERAL RESERVE DISTRICT
Returns for November and eleven months of 1926 compared with the
corresponding month and eleven months of 1925 in percentages of increase or decrease.
November 1926 u months 1926
compared to
compared to
November 1 92 5 11 mon th s 1 92 5
Bank debits in 3° cities.. _ _ _ _ _ _ _ _ 4•9
4· 6
9· 2
Federal Reserve Bank Cleanngs.... _ _ _ _ _
7-1
Number of items handled ...... _ _ _ _ _ 3.5
3-9
Commercial failures................................................
5.0
1.0
Amount ofliabilities...... ----···········-32.6
~-4
1 •0
Retail trade at 35 department stores.................... 8-6
Wholesale trade at all stores reporting,___
1.7
----2.1
Lumber sales at reporting retail· yards .................. -8.2
-2.2
Building ~on:ract a':"ards i;11_ entire district.......... -5.4
32.1
Permits JSSued m 18 ciaes.._ ..........................-18.2
-18.7
Value of permits in 18 cities ..........................-11.1
-26.1
Receipts
of grain
at ..5_
markets:
Wheat,
bushels
_ _ _ _ _ _ _ _ -3.3
60.7
Corn, bushels .................... _ _ _ _ _ _ -13.6
14.8
Oats, bushels..................... _ _ _ _ _ _-57.1
-58.9
1 5· 7
Flour production .......... _ _ _ _ _ _ _ _ _ 4o.6
Cement production ........ - - - - 7.0
-O.I
Face brick production .. - - - - - - 0.2
4 .8
Crude oil production .... - - - - - 7-1
-0.3
Zinc ore shipments .................................................. -1.9
3-5
4 ·3
Lead ore shipments ...... - - - - - - - - - - 2 2 -5
Soft coal productio,.__________
4. 5
3-9
Live stock receipts at 6 markets:
Cattle
5.9
-5.5
Calves ........................ _ _ _ _ _ _ _ _ -4. 6
-x4.4
H
06
-12.8
ogs............. ·-·········
·
t:::~~··~~·--d_m_u_l_es-..-...:=======--·-···_···_··_···_··_····:-3~:~
Meat packing at 6 cities:
C a t t l . ~ - - - - - - - - - - - - - 1·6
8
C I S
ave············
-;5:0
3
16.4

r
I

~~::p.·.·.~·.·.·······-··

...........

-1t~

~-5

-15.3
_., •
10 8
1 4 .o

JANUARY 1, 1927

No.

I

ditions basically sound the outlook at the year-end was reassurmg.
Production of farm crops, the basis for a good part of the
prosperity reflected by the reports, was estimated for the year
as slightly below the average for ten years. Yet, considering
individual crops, it was a noteable . year for agriculture-the
peak year for production of cotton and sugar beets and the
second best year for wheat production. The corn crop was
reduced by drought to about half the size of the 1925 crop .
but this loss was partly offset by large yields of other crops
of value for feeding live stock. On the whole the value of farm
crops in this district should fall but little below the value of
1925 crops, estimated at $1,229,000,000.
The enormous crop and the fine quality of winter wheat
harvested-and another crop up to good stands and entering
the winter in excellent condition-led to an expansion of the
milling industry and gave this district first rank in flour production. The flour output from January I to the end of Novemher was 15.7 per cent above that for the like period in 1925.
The live stock industry, second only to that of ag ricu 1t11re,
had a good year. Production of meat animals made good progress and while market supplies of all classes of live stock,
except sheep, fell below those for the preceding year, prices
were better balanced and generally more satisfactory to growers.
Dairy production made good gains, and there was heuvy marTh
) 1·
h J
c
keting of poultry and eggs.
e woo l 1p was t c: arvesr ror
several years.
Meat packing operations were mo<lerately heavy hut not
quite up to the record of 1925. The official count of c.-ttle,
calves, hogs, sheep and lambs purchased and slauahtered
t:during tl--e first el~ven months of t!-ie year totaled 12,598,243,
a decrease of 368,304, or 2.8 per cent from the record for the
)ike period in 192 5.
•
l •
•
]d
k bl
Reports of the mmera tndustrte~ revea e remar a e pro
gress. Several new high records were established. The output
of crude oil increased ic, late autumn and in ovemher wa~
the largest for any month of record. The final figure~ were
expected to show the year's production a few thousand '1arrds
less than in the preceding year, but higher average prices
gave the 1926 output a value greatly in exce~s of that for 1925.
Soft coal production in the week ending November 20 attained
the highest peak in four years, and the tonnage mined during
the calendar year was larger than in 1925. Production and
shipment of lead and zinc ores in the Missouri, Kansas and
Oklahoma district exceeded the tonnages of the preceding year,
but values were smaller on_ account of the lower prices. There

Thia Copy Released For Publication In Morning Newspapers December 27.

THE MONTHLY REVIEW

was no apparent slowing down in the camps of Colorado and
New Mexico where metal mining operations were the greatest
for many years. The arrival of winter caused the usual slowing
down of operations at plants manufacturing cement, brick,
mineral paints and clay products, while operations at glass
plants increased. Production in these industries for the year
was slightly larger than in 1925.
Building operations and public work throughout the district
as a whole were heavy, and the value of contract awards in
eleven months was greater than for the same period in 1925,
although in reporting cities the value of permits decreased,
indicating that building shortages in these cities had been
overcome and construction was in keeping with the seasonal
demand.

Banking and Credit
Credit conditions in the Tenth District in the final month
of the year were not materially different from those which
prevailed in the summer and autumn. While large amounts of
money were necessary to finance industrial and trade operations,
and to meet requirements of agriculture and livestock, it was
noted that the volume of loans· at banks fell steadily during
the last quarter of the year and the total at reporting member
banks on December 8 was 7.6 per cent below that reported
one year earlier, and in fact the smallest total reported since
October 22, 1924. On the other hand there had been a steady
upward trend in investments by banks and the level in the last
quarter of the year was the highest of record. Deposits fell off
during the latter part of the year and the gross at the second
reporting date in December was only one-tenth of 1 per cent
above that reported December 9, 1925. Weekly statements of
reporting mem her banks as of Decem her 8 and N ovem her IO,
1926, and December 9, 1925, are shown in the following table:
Dec. 8, 1926
(66 Banks)

Nov. 10, 1926 Dec. 9, 1925
(66 Banks)
(69 Banks)

Loans and Discounts, including Rediscounts:
Secured by U.S.Govt. Obligations .. '!, 4,587,000 'I, 4,496,000 'I, 4,on,000
Stocks and Bonds other than U. S.
Bonds .............................................. 107,455,000 107,640,000 I l 5,136,000
All Other ............................................ 303,187,000 3o9,4o5,ooo 330,082,000
Total Loans and Discounts .............. 415,229,000 421,541,000 449,229,000
Investments:
U.S. Govt. Securities ...................... 'l,101,343,000 '1,103,195,000 $ 91,728,000
OtherBonds, Stocks and Securities.. 93,n7,ooo
94,876,000
76,809,000
Total Investments ............................ 194,460,000 198,071,000 168,537,000
Total Loans, Discounts and Investments ........................................ 609,689,000 619,612,000 617,766,000
Deposits:
Demand Deposits ..............................$485,611,ooo 'f,497,7 20,ooo $487,142~000
Time Deposits .................................... 145,404,000 1·49,607,000 143,949,000
1,041,000
Government Deposits.......... .... ......
1,652,000
437,000
Total Deposits ...................................... 632,056,000 648,979,ooo 631,528,000

GOVER ME T FI A CI G: The Secretary of the
Treasury reported a liberal response by Tenth District banks
and their customers to the December offering of an issue of
3¼ per cent Treasury certificates of indebtedness to mature
September I 5, 1927. Cash subscriptions through the Fiscal
Agency Department of the Federal Reserve Bank of Kansas
City aggregated $13,690,000 and exchange subscriptions of
maturing certificates for the new issue amounted to $1,080,000.
Of the total amounts subscribed only 2,772,500 was allotted
to Tenth District subscribers. The total of subscriptions to
the new issue in the United States was $1,096,000,000, and
the total of subscriptions allotted was $229,264,500.

RESERVE BANK OPERATIONS: Weekly statements of
the Federal Reserve Bank of Kansas City, including branches,
showed total reserves increased $2,882,035 between November IO
and December 15, and the total as of the latter date stood
$12,363,155 above the amount reported at the corresponding
date in 1925. Biils rediscounted for member banks, and also
bills purchased in the open market, increased during the fourweek period and the total at the middle of December was
$II3,012 less than the total at the middle of December in the
preceding year. Important resource and liability items appearing in the financial statements as of the three dates mentioned
are shown in the table which follows:
Dec. 15, 1926 Nov. 10, 1926 Dec. 16, 1925
Gold Reserves......
$ 98,307,136 $ 95,820,527 'I, 87,102,932
Total Reserves..............
103,187,n6 100,305,081
90,823,961
Bills Discounted......
16,597,387
15,844,025
20,542,779
Bills Purchased.............
19,467,139
18,382,904
15,634,759
U. S. Govt. Securities.......................... 27,019,400
28,349,400
32,970,200
Total Bills & Securities........................ 63,083,926
62,576,329
69,599,738
Total Resources.................
223,673,750 218,198,524 220,002,334
68,365,300
69,763,900
F. R. Notes in Circulation.................. 72,033,400
Total Deposits...................................... 94,060,918
93,435,6n
90,814,888
Reserve Ratio............
62.1 %
61.9%
56.5%

CHECKING OPERATIONS: Debits by reporting banks
of checks drawn by customers against accounts in thirty cities
increased during November and the total for four weeks ending
December I stood 0.4 per cent above that for the preceding
four weeks ending November 3, and 4.9 per cent above that for
the four weeks ending December 2, 1925. Debits reported for
the first 48 weeks of 1926 were larger by $662,967,000 or 4.6
per cent than in the 48-week period in 1925. Later reports•
showed the total for the first 50 weeks of 1926 exceeded the•
total for the entire year 1925. Debits reported by the thirty j
cities by 4-week periods are shown in the following:
·
Four Weeks Ending
Per cent
Dec. 1, 1926
Dec. 2, 1925 Change
12,561,000 'I,
10,442,000
20.3
Albuquerque, N. M ......... - - - - ' $
Atchison, Kans ....... _ _ _ _ __
5,578,000
I 5,875,000
-5.l
Bartlesville, Okla...................................
25,154,000
14,105,000
78.3
10,n5,ooo
10,396,000
-2.7
Casper, Wyo ..................· - - - - Cheyenne, Wyo ................. - - - 7,456,000
8,195,000
-9.0
Colorado Springs, Colo ........................ .
I 5,204,000
14,795,000
2.8
168,673,000
167,094,000
0.9
Denver, Colo ... - - - - - - - 13,818,000
14,155,000
--2.4
Enid, Okla ..... - - - - - - - 3,217,000
3,099,000
3.8
Fremont, Nebr........... - - - - 3,988,000
4,004,000
--o.6
Grand Junction, Colo ...........................
3,457,000
3,920,000 -1 I.8
Guthrie, Okla ............. - - - - I.I
Hutchinson, Kans .................................
13,906,000
13,756,000
10,846,000
9,088,000
19.3
Independence, Kans ............................ .
17,1n,ooo
18,287,000
--6.4
Joplin, Mo .............................................. .
18,599,000
19,106,000
-2.6
Kansas City, Kans ... - - - - - 361,959,000
367,256,000
-1.4
Kansas City, Mo ... ..........- - - Lawrence, Kans .....................................
4,902,000
5,017,000
-2.3
Lincoln, Nebr ........................................ .
28,048,000
29,145,000
-3.7
4,517,000
5,109,000 -11.5
McAlester, Okla.................. - - - -7.4
12,203,000
13,180,000
Muskogee, Okla .................................... .
90,150,000
85,565,000
5.4
Oklahoma City, Okla ............................ .
-4.9
Okmulgee, Okla .................................... .
9,501,000
9,988,000
171,474,000
177,722,000
Omaha, Nebr........................................ .
-3.5
Parsons, Kans ........................................ .
3,043,000
2,916,000
4.4
6,520,000
6,365,000
2.4
Pittsburg, Kans ............... ..................... .
37,250,000
23,252,000
60.z
Pueblo, Colo .......................................... .
St. Joseph, Mo ...................................... .
58,645,000
55,150,000
6.3
15,866,000
14,193,000
II.8
Topeka, Kans ........................................ .
124,450,000
95,268,000
30.6
Tulsa, Okla ............................................ .
47,921,000
39,130,000
22.4
Wichita, Kans .........................................
Tota! Four Weeks .................................. '$ 1,306,132,000 'I, 1,245,573,000
Total Forty-eight weeks ........................ I 5,199,199,000 14,536,232,000

4.9

4.6

THE MONTHLY REVIEW

RESERVE BANK CLEARINGS: In the twenty-three
banking days of November a daily average of 256,794 items
and $45,005,000 in amount was handled for 3,562 banks in
this district by the transit forces of the Federal Reserve Bank
of Kansas City and branches at Omaha~ Denver and Oklahoma City. This was the highest daily average of record for
both items and amounts handled for collection. These averages
far exceeded those for the twenty-six banking days in October,
although the totals for the month were smaller than those for
the preceding month. During the eleven months of 1926 the
number of items handled was 2,422,403 greater and the amount
$713,914,000 greater than reported for the corresponding eleven
months in 1925. The summary for the year follows:
ITEMS
AMOUNT
1~6
19~
19~
19~
ovember...................... 5,906,243 5,704,700 1, 1,035,111,000 f, 948,169,000
Eleven Months ..............64,168,009 6i,745,6o6 f,10,710,660,000 f,9,996,746,000

l

SAVI GS. A selected list of savings banks and savings
departments in commercial banks reported an increase of 0.4
per cent in the amount of savings deposits between November 1
and December 1, and there was an increase of 3.7 per cent in
the amount of deposits in twelve months. The number of savings
accounts increased 0.3 per cent in one month and 1.7 per cent
in one year. Savings deposits in reporting banks follow:
Banks Dec. 1, 1926
Denver, Colo ........................... 6 1, 47,449,792
Kansas City, Kans................. 3
2,186,595
14,987,309
Kansas City, Mo..................... 10
Lincoln, Nebr..... - - - - 4
3,558,343
Oklahoma City, Okla ............. 7
9,406,672
7,739,716
Omaha, Nebr...................·-····· 5
St. Joseph, Mo ......................... 6
8,102,295
13,359,011
Tulsa, Okla ............................... 5
Wichita, Kans ......................... 6
5,014,822
Outside............_ _ _ _ _ 3
828,607
Total.. ........................................ 55

1,112,633,162

Nov.

1,

1926

f, 47,576,144

2,184,056
15,072,425
3,446,386
9,34o,945
7,674,o35
8,050,605
13,024,142
5,046,912
801,884

Dec.

1,

1925

1, 48,004,361
2,128,744

15,117,083
3,350,648
7,867,327
7,5 14,437
8,838,197
10,173,613
4,769,015
846,141

f,112,217,534

Failures
The report of R. G. Dun & Company for November showed
fewer business insolvencies in the Tenth District than in October,
but the month's total slightly exceeded that for the corres.pond'ing month in 1925. The amount of liabilities involved in
November failures was, with the exception of last February,
the smallest for any month since November 1922. During the
eleven months of 1926, for which returns were available for this
issue of the Monthly Review, there were twelve more business
failures than in the corresponding eleven months of 1925,
but the amount of liabilities involved in 1926 failures was
$1,408,042 less than recorded for the eleven months of 1925.
The record of business failures in the United States by Federal
reserve districts for the month of November in 1926 and 1925
and for the first eleven months of both years, follows:
Number
Districts
1926
1925
First, Boston................................ 221
158
Second, New York...................... 363
302
Third, Philadelphia....
72
49
165
Fourth, Clevcland ......·-·········-···· 134
Fifth, Richmond.......................... 120
91
92
74
Sixth, Atlanta..............................
Seventh, Chicago....
237
218
Eighth, St. Louis......
69
74
Ninth, Minneapolis......................
83
90
TENTH, KANSAS CITY.......... 105
100
Eleventh, Dallas..........................
95
71
280
Twelfth, San Francisco................ 239

Liabilities
1926
1925
f, 3,425,829 'f, 2,118,334
5,931,843
5,734,875
2,620,000
1,on,228
2,775,023
3,428,II4
3,067,845
1,631,370
1,875,122
2,065,090
5,633,337
7,065,391
8o6,848
5,173,004
721,000
963,797
777,792
1,153,488
1,543,071
995,237
3,516,283
4,582,493

U. S. Total, November................ 1,830
U. S. Total, II months ................ 19,704
TENTH DISTRICT, nmonths 1,150

'/, 32,693,993
363,622,700
13,53 2,591

1,672
19,336
1,138

'/, 35,922,421
407,216,112
14,94o,633

Agriculture
A further substantial increase in cotton production in the
Tenth District was indicated by the December 1, or final estimate for 1926, of the United States Department of Agriculture.
Aside from this gain the report showed few important
changes from earlier reports in the estimated size of other
leading crops grown in the district in the year 1926.
. The value of Tenth District farm crops for 1926, based on
the Department's estimated production and at current farm
prices, should closely approximate $1, 165,000,000, or about
$64,500,000 below the value of farm crops produced in the district in 1925.
The final estimates on farm production made a more favorable
showing for agriculture in this district than was anticipated
at the close of the summer when fall crops were maturing. This
district in 1926 produced its largest crops of cotton and sugar
beets, and its second largest crop of wheat. Due to dry weather
conditions the corn crop was but little better than half the size
of the 1925 crop. Yields of oats, hay and potatoes were smaller
tha'n in 1925, but yields of grain sorghums, broom corn, sweet
potatoes, fruits (except peaches) were larger than those of the
preceding year.
WINTER WHEAT: According to the final report of the
United States Department of Agriculture for the year 1926,
made public December 20, the area sown to winter wheat in
the Tenth District totaled 22,177,000 acres, or 513 per c'e nt of
the entire United States winter wheat acreage sown in the fall
of 1926. This is the largest acreage of winter wheat of record
for this district. It exceeds the total planted in the fall of 1925
by 1,054,000 acres. The year's acreage sown in the leading producing states of this district and the increase or decrease over
the acreage for 192 5 follows:
Colorado, 1,509,000 acres; increase 105,000 acres.
Kansas, u,962,000 acres; increase 470,000 acres.
Missouri, 1,619,000 acres; increase 358,000 acres.
ebraska, 3,569,000 acres; increase 518,000 acres.
Oklahoma, 4,558,000 acres; increas,e 228 ,000 acres.
ew Mexico and Wyoming reported slight changes.
The area of winter wheat in Kansas is the second largest
sown since 1921. This was the peak year for wheat plantings
in that state. "The increase in the acreage this year over last
is quite uniform throughout the state," said the board's report.
"Only a few counties in the northwest, where it was very dry,
and a few in the southeast, where it was too wet at seeding
time, show smaller acreage now than a year ago. Some of the
largest wheat counties of the c~ntral Kansas wheat belt indicate the largest acreage ever planted. The condition of this
year's wheat acr,eage, as it entered the dormant winter period
in December, was at 80 per cent of normal compared with 84
per cent last December, 76 per cent in 1924, 84 per cent in 1923
and a 10-year average of 80 per cent. The outcome of this new
wheat crop is very much dependent on wiriter moisture conditions and the severity of the temperatures from now until
spring. Unfavorable turns of weather could prove ~isastrous.
Favorable moisture and temperature could make 1t one of
Kansas' largest wheat crops."
COTTON: The crop reporting board of the United States
Department of Agriculture, as of December 1, esti_mated the
United States cotton crop at 18,618,000 bales, an increase of
1 018 ooo bales bver the November 1 estimate, and 2,514,321
b'a1es' over the total cotton ginned from the crop of 1925. The
summary of the reports shows that 58.3 per cent of the United
States cotton crop was produced in the eight states lying west

THE MONTHLY REVIEW

4

of the Mississippi River. The number of bales produced in these
state!! follows:

f?r _the ele~en ~onths of 1925 and the largest output fo1 a
similar period m all years of milJing history. The record 0£

Jr.inned
1925
Bales
4,165,374
1,691,000
· .1,6o4,ooo
~ 910,468
294,262
64,444
118,588
121,795

Novemb~r production of reporting mills at the leading centers
as compiled from reports to the Northwestern Miller follows:

Estimate
Dec. 1, 1926
Bales
Texas........ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 5,900,000
•Oklahoma..
1,950,000
Arkansas.
1,620,000
Louisiana..........
820,000
255,000
•Missouri........
72,000
• , ew Mex1co .....·-······
115,000
Arizona....
Ca lifornia....
128,000

r

8,969,931
Eight S. W. States ...... _ _ _ _ _ _ _ _ _ _ 10,86o,ooo
Tenth District.. _ _ _ _ _ _ _ _ _ _ _ _ _ 1,880,000
1,698,000
• United State~····-····-····---------I8,618,ooo
16,103,679
Total fo , entire state, and not segregated by Federal Reserve Districts.

An Oklahoma cotton crop of 1,950.000 bales was in prospect
on December 1, the largest ever produced and that state ranks
second in cotton production. The Census Bureau reported
1,164,000 bales ginned in Oklahoma to December 1, against
1,340,000 bales of the 1925 crop ginned prior to December 1.
Considerable of the crop was still in the field at the date of the
report and should favorable weather continue until February it
was probable the state would pick and gin in excess of the estimated 1,950,000 bales. Ginnings to December I were 48,013
bales in New Mexico and 161,747 bales in Missouri.

Grain Movements
November reports reflected a general slowing down in movements of grain to the markets. Receipts for the mor.th at five
markets in the Tenth District were smaller than in October
for all classes except kafir, while receipts of all classes except
rye and kafir fell below those of November 1925~
Moveme~ts of the 1926 wheat crop which were exceptionally
heavy durmg July, August and September, receded late in
autumn. As estimates indicated less than 20 per cent of the
year's crop remained on farms December 1, it was apparent
that marketings during the remainder of the wheat year would
be small. Combined receipts at the five markets in the first
five months of the 1926-27 wheat year were 99 per cent larger
than for the like period in 1925, while receipts for the calendar
year to November 30 at these markets were 60.7 per cent larger
than for the first eleven months of 1925.
Official records of receipts of six cla~ses of grai'n at the five
leading markets of the district are shown in the following:
Wheat
Bushels

Corn
Bushels
10,000

Hutchinson. __ 1,502,550
Kansas City.... 4,307,800
79o,5oo
Omaha .......... _ 1,037,400 1,419,6oo
644,000
St. Joseph.... - ..
375,000
Wichita.-......... 1,487,700
51,6oo
Nov. 1926.... -.. 8,979,450
Oct. 1926._____ 14,559,550
Nov. 1925______ 9,288,700
II Mos. 1926.. 170,963,900
I I Mos. 1925.. 1o6,384,050

2,646,700
5,043,850
3,062,050
46,269,050
40,314,450

Rye
Barley \ Kafir
Bushels Bushels Bushels
1,500
3,6oo
7,5 00 183,300
338,000
31,500
56,000 397,100
282,000
49,600
57,400
76,000
55,5 00
1,200
1,200
15,000
15,600

Oats

' ushels

---------

712,500 149,200 II4,300 596,000
1,192,000 u6,700 176,900 137,000
1,66o,800
70,400 IIB,250 432,100
13,2u,500 1,621,400 892,900 3,907,900
32,175,100 827,700 1,360,750 5,305,400

Flour Production
Southwestern mills were operated during November at 78
per cent of the full -time capacity as compared with 81.6 per
cent in October and 57.7 per cent in November 1925 and the
output of flour during the short month was the largest for
any November of rect)rd. The reporting mills in this district
produced 22 765 526 barrels of flour during the first eleven
months of 1926 which was 3!.088 194 barrels above the total

Atchison ..
Kansas City
Omaha..
Salina.. ___
St. Joseph __ ..
Wichit
Outside....
Tota

Nov. 1926
Barrels
123,774
622,925
98,107
1-46,773
185,783
213,365
1,008,790

Oct. 1926
Barrels
122,197
647,5o7
96,908
146,084
185,406
208,265
1,106,893

Nov. 1925
Barrels
97,693
485,831
85,899
108,576
134,980
121,225

2,399,5 17

2,513,260

1,706,761

67:2,557

Live Stock

Except for such declines as may be looked for every year
when winter comes-these declines varying as weather changes
are more or less severe-the condition of live stock on western '
farms and ranges on December 1 was gener?lly good. Feed ,
conditions save in a few dry sections were excellent and while
ther~ was reported some shifting about and some change in
feedmg methods the number of cattle on feed west of the Mississippi River this winter was reported as a few thousand head less
than last winter, although the number of sheep o.P feed appeared
to be slightly larger than a year earlier.
The cattle ~-ituation showed some improvement during the
fall an~ with less liq1;1i1~tion. This situation was described by
the Umted States Division of Crop and Livestock Estimates
for Colorado in the December report as follows: "There is a
considerable desire to restock, and finances are more av.1ilable
but the right kind of stock cattle cannot now be supplied. Re-.
ports are that the numbers of all kinds of cattle on hand are,.
about t?e same. as a year ~go. With the prevailing prices for
cattle slightly higher, there 1s a much better feeling toward the '
business than in recent years. "
Available reports indicated a marked increase in the number j
of sheep in the breeding herds and flocks in the Rocky Moun- I
tain regions of this district. On the whole 1926 was a very good
year for the sheep and wool industry and the year-end reports
gave a very encouraging outlook for the coming year.
Late reports indicated there were fewer hogs on farms in
the western part of the Corn Belt than at the beginning of last
winter. In Nebraska, the leading producing and feeding state
of this district, it was estimated the number of hogs on farms
was 88 per cent of the total on har.d one year ago.
The market reports coverin'5 the first half of December showed
t~p pri~es of c~ttle, sheep and ho¥s were closer than at any previous time this year, although 1t would be difficult to make
comparisons on the various grades. Top prices at Kansas City
for the first week in December were: Hogs $11.90, lambs $12.65,
steers $12.60. The bulk of hogs sold above $11.35, of lambs
above $12 and of cattle under $9.50.

l
l

FEEDING OPERATIONS: The movement of meat animals
from four primary markets to the country for feeding purposes
was seasonally smaller in November than in October but was
larger than that for November 1925 for all classes except sheep.
The record for eleven months of 1925 showed a decrease of 8.6
per cent in the number of stock and feeding cattle shipped to
the country, but substantial increases in countryward shipments of calves, sheep and hogs as compared with the same
period in 1925. Shipments of stock and feeding live stock from~
I

iHE MoNTHLY REVIEW

the four reporting markets to the country are here shown
for the month of November and the II-month period in both
years:
Cattle
99,9 21
49,868
12,843
74,040

Kansas CitY----·························
Omaha.............................. _ _ _ __
St. Joseph.·-········-··-----Denver................. _ __ _ _ _ _

November, 1926............. _ _ _ _ _ 236,672
November, 1925 ...................................... 187,794
I I months 1926...................................... 1,370,010
I I months 1925.· - - -- ---··1,499,729

Calves)
8,714

16,472
14,725
75,430
73,203

Hogs,
Il,365
1,336
2,352
1,629

i,Sheep
20,556
46,538
15,549
179,97°

16,682
262,613
10,777
263,432
154,716 2,181,692
133,674 2,1 '27,967

The abundant supply of winter feed, and the ranges and
pastures still affording good grazing, caused a very strong demand in November for stock and feeding cattle. This was
particularly noticeable in Kansas where in addition to very
large crops of roughage the wheat fields made excellent pasturage, and shipments of stock and feeding cattle into that state
were the largest of the year. The demand was also very heavy
from the southern states, with their enormous supplies of cottonseed meal and hull, excellent feed for livestock, and where winter
pasture conditions are the best in years. Larger numbers of
cattle were on feed in Colorado where winter ranges were still
considered as excellent in most localities and hay plentiful at
comparatively low prices.
~MARKET MOVEMENTS: November brought seasonal
declines from October in market supplie-. of cattle, calves,
sheep: horses and mules, and a seasonal increase in hogs. But
the month's totals showed increases over ovember 1925 in
receipts of all classes of live stock except calves, horses and
mules. Reports from the six markets for November and eleven
months of the year are shown in the following t able, with totals
for November and eleven months of 1925 for comparison:
Cattle

Calves

Kansas City............................. . 244,251
Omaha ...................................... 140,931
St. Joseph ............................... . 54,410
Denver.................. ·-················· 100,004
Oklahoma City........................ 2 4,7 1 3
Wichita ................................... . 34,484

48,678
13,503
10,298
10,219
8,913
10,372

Hogs

Sheep

*260,150
137,9°3
148,555
38,433
16,254
48,819

92,522
164,373
73,862
190,885
1,139
6,617

Horses
Mules
2,546
1,768
835
1,719
1 74
74°

November, 1926...................... 598,793 101,983
650,II4
529,398
7,782
November, 1925...... ................ 565,661 106,869
646,502
520,428 II,432
I I months 1926........................ 5,034,267 824,487 7, 249,646 7,403,847 101,379
I I months 1925 ...................... 5,330,070 963,434 8,316,911 7,043,740 120,759
*Includes hogs received at packers' yards.

MEAT PACKING: With increased supplies at the markets
the slaughter of hogs at six packing centers was larger in November than in the preceding month and also exceeded the number
slaughtered in November 1925. While the slaughter of cattle,
calves and sheep was seasonally smaller than in October, the
month's totals compared favorably with those for November
1925, those for cattle and calves showing small decreases and
those for sheep showing a good increase. Purchases of meat
animals by packers, including hogs shipped direct to packers
yards, follow:
Cattle
Calves
Kansas City.............................................. 120,631 3°, 299
Omaha............
84,726
7,961
St. Joseph .. ..............
36,600
7,867
12,922
Denver-··-3,278
Oklahoma City_ ......
II,970
6,894
Wichit
8,933
3,2 54
November 1926..
November, 1925 ..........
I I months 1926 ..
I I months 1925 ..

Hogs
204,115
95,432
127,271
24,931
12,930
43,422

Sheep
69, 157
109,898
56,051
15,314
95°
2,II9

508,101
275,782 59,553
253,489
280,364 63,250
21 7,827
449,773
2,757,793 6o2,732 5,42o,433 3,817,335
2,829,627 711,849 6,074,846 3,35o,275

STOCKS OF PORK: Stocks of pork and lard at Kansas City
on November 30 were 21,612,500 pounds, an increase of 1,060,000
pounds during the month and 1,628,800 pounds more than
reported one year earlier.

Petroleum
Production of crude oil in fields of the Tenth District averaged
741,967 barrels daily during November and the output for the
30-day month was 22,259,000 barrels. This was the largest
daily average and monthly production of crude oil of record
for this district. The nearest approach to the November record
was in May 1923 when the daily average was 715,634 barrels
and the men th' s production 22, I 8 5,ooo barrels. Oklahoma's
daily average and gross production was the largest of record
for th at state. Of the five prcxlucing states all showed increases
over a year ago except Wyoming. The heavy output during
the month brought production for eleven months of the year
to 225,802,000 barrels, which was only 600,000 barrels short
of the output for the first eleven months of 1925. T he ovember
record of gross production, as reported by the American Petroleum Institute, is here compared with the lnstitute's figures for
October and the official Geological Survey figures for November
of 1925:
* ov. 1926

Barrels
Oklahoma ........................................................ 16,521 ,ooo
Kansas ............................................................ 3,475,000
Wyoming ........................................................ 1,872,000
226,000
Colorado................................. _ _ _
Tew Mexico.... .............................................. 165,000
Total.. .............................................................. 22,259,ooo
*Estimated, American Petroleum Institute.

*Oct. 1926
Barrels
15,604,000
3,554,000
2,018,000
242,000
152,000

ov. 1925
Barrels
14,850,000
3,272,000
2,358,000
165,000
138,000

21,570,000

20,783,000

Reports on r.eld operations showed little change in the number
of new wells comrleted, but daily new production was the
largest for any month since December 1924. ew development
work showed greater activity than at any time i:.ince last July.
The number of wells drilling at the end of the month was 102
more than at the erd of the previous month and 250 more than
at the end of November 1925. Reports in detail for the five
states on field operations and new work follow:
Wells
Bbls. Daily Dry
Completed New Prod'n Wells
Oklahoma ....................................427
148,052
1 45
14,807
Kansas............ - - - - · ······165
57
20,990
I I
Wyoming.................................... 37
0
Colorado .. - - - · ················· 3
545
New Mexico ................................ 10
293
3
ov., 1926..................................642
Oct., 1926....................................682
Nov., 1925 ..................................625

184,687
138,857
106,108

216
221
202

Gas Rigs-Wells
Wells Drilling
36
1,485
8
4o9
3
337
0
124
0
144
47
35
48

2,499
2,397
2,249

A slight slowing down in refinery operations from the previous
month was indicated by the December 1 reports, although the
daily runs of crude oil to refir.. ery stills were larger than a year
ago. The combined reports for Ok1ahoma and Kansas follow:
Plants
Operating
December 1, 1926........ - ~ - - - - - - - - - - - · 6 2

~~;:::t; :: ::t·.~·.~~~~::.-.-.-.-.·.~~~:::::::::::::::::::::::::::::::::::::::::::::::::::::i
1

1

Runs to
Stills
250,-480
261,200
246,130

Mining
COAL: Mining operations in the soft coal fields of this dist_rict in November were at the highest percentage of full-time
capacity of the year. The peak of production came in the week
ending November zo, the United States Geological Survey
estimating the output for that week at 785,000 tons. Total

6

THE MONTHLY REVIEW

production for the month,!amounting to 3,209,000 tons, was
the largest for any month since January 1925. Production reports from six producing states were:
*Nov., 1926
Tons :i .
C o l o r a d 0 - - - - - - - -········1,048,000
K~nsas-:····-···· _ _ _ _ _ _ _ 521,00::,
M1ssoun .....· - - - -·······-················ 313,000
New Mexico...•···· ······-···························· 283,000
Oklahoma.................................................. 251,000
Wyoming .................................................. 793,000

Oct., 1926
Tons ·
1,058,000
481,000
286,000
266,000

235,000
727,000

Total............................... _ _ _ _ _ 3,209,000
3,053,000
*November estimated, United States Bureau of Mines.

Nov., 1925
Tons
1,168,000
419,000
263,000
235,000
231,000
754,000
3,070,000

The record f?r eleven months of 1926 shows 26,299,000 tons
as compared with 25,310,000 tons for the same period in 1925.
Cumu1ative production of soft coal in the United States in
1926 to December 4 (approximately 286 working days) amounted _to 530!252,?00 net tons. This was the largest production in
a hke period smce 1922. In 1925 the total to the first Saturday
in December was 478,653,000 net tons and in 1924 it was
442,361,000 net tons.
The demand for domestic coal was moderately heavy, though
retailers were carrying small stocks in their yards and home
owners were not buying in large quantities. The demand for
steam coal has been quite heavy during the last half of the year.
Production of Bee-Hive Coke in Colorado and in ~ew Mexico
to the end of ovember was 242,000 tons as compared with
218,000 tons for the same period in 1925.
ZINC AND LEAD: Mining operations continued through
November and into December at about the same level as at
that time in 1925 in the lead and zinc fields of southwest Missouri, southeast Kansas and northeast Oklahoma, known as
the Tri-State District. Shipments of zinc ore during a fiveweek period ending Decem her 4 exceeded those for the preceding five weeks but were smaller than for the same period
in 1925. This decreas,e was due to the fact there were three
holidays in this period against two holidays in the five weeks
of 1925. Shipments of lead ore were comparatively light during
the latter part of November but for the week ending December 4
they w~re the third largest weekly shipments of the year. Shipments of these ore& from each of the three produciEg states in
tonnage and value follow:
ZINC_ORE
Tons
Value
Oklahoma ....................................... 57,493 '/, 2,714,483

~7:s:i~i::·.~·.·: : :~~·.·.·::::::::::::::::::::::::::::

2
;:~~

~

l ';::~

5 wks. ending Dec. 4, 1926.......... 89,441 '/, 4,228,475
5 wks. ending Oct. 30, 1926........ 75,786
3,682,148

5 wks. ending Dec. 5, 1925.......... 91,132
49 wks. ending Dec. 4, 1926..........790,687
49 wks. ending Dec. 5, 1925-......... 764,161

5,300,668
'/,38,839,785
41,664,792

LEAD ORE
Tons
Value
8,700 '/, 874,822
369,490
3.675
42,802
427
12,802 '/, 1,287,II4
1 ,575,00 5
l4,969
2,079,3 15
16,519
123,546 '/,13,127,004
13,943,33°
II8,456

For forty-rine weeks of 1926 the average price paid for zinc
ore was $48.77 per ton and for lead ore $105.10 per ton, as

compared with $53.53 per ton for zinc and $115.73 per ton for
lead during the corresponding forty-nine weeks of 1925. For ..._,
the week ending December 4 zinc ore sold at $46 per ton and •
lead ore at $100 per ton, as compared with $56 per ton for zinc
ore and $120 per ton for lead ore for the same week in 1925.
METAL MINING IN COLORADO: Operations in the
metal mining camps throughout the mountain sections were
unusually heavy during the first eleven months of the year
and early in December were showing no apparent recession.
Complete returns on the volume of productio11were not available
for this issue of the Monthly Review, but reports indicated it
was running considerably ahead of 1925. It was expected production of lead, zinc and copper would show substantial inrreases while there would be only slight increases in the output
of gold and silver. While prices of metals, particularly in the
latter part of the year, were below those for the corresponding
period in 1925 it was evident that with the larger output the.
aggregate value of mineral production in Colorado and New
Mexico for 1926 would slightly exceed that for the preceding
year.

Trade
WHOLESALE: Trade at wholesale reported by firms located
at distributing centers of this district was slightly smaller in
volume in November than in October, due chiefly to the fact
there were fewer business days in the month than in the preceding month. However, tl-e November volume of sales in dollars
exceeded that for November 1925.
Wholesalers of dry goods reported their business was fairly
heavy for so late in the year, and somewhat heavier than in
November a year ago. Recent reduction in the price of cotton
goods> amounting to about IO per cent on plain and staple
lines. caused merchants to feel safer in buying for their trade
requirement~. However, stocks at retail stores, as well as at
wholesale establishments, were reported as the lowest for years.
General conditions for this and other lines of wholesale trade
were reported favorable. Wholesale hardware trade, while
seasonally quiet, was somewhat better than it November 1925
and in the early part of December was about normal for the
season. November sales at hardware, furniture and drug stores
were augmented by late buying by retailers for their holiday
trade.
Business in the implement and farm machinery lines was
seasonally light, particularly in those parts of the agricultural
territory which suffered from drought during the summer.
But distributors reported the outlook for the district as a
whole as encouraging and very good business in sight for 1927.
RE'f AIL: Firms engaged in various lines of retail trade
reported their sales in dollar amounts were considerably larger
in November than in the same month in 1925, and the continued heavy buying through December to Christmas indicated
that final returns for the year would show a volume equal to
that of 1925, which was reported as the best year for retail

WHOLESALE TRADE IN THE TENTH FEDERAL RESERVE DISTRICT
Sales
Outstandings (Mo. End.)
Collections
Reporting
Nov., 1926
ov. 1926
Nov. 30, 1926
Stores
compared with
compared with
compared with
Oct. 1926
Nov. 1925
Oct. 31, 1926 Nov.30,1925
Oct. 1926 Nov. 1925
Dry Goods .................................... 7
- 2.4
8.8
-6.5
-6.o
6.4
0.7
Groceries ...................................... 4
3.7
~.8
--2.l
-2.6
I.8
-13.8
Hardware...................................... 7
2·3
~ .8
o.5
-3.7
4.3
~-5
Furniture...................................... 4
, .6
6.-4-5.6
o.8
5-1
5.1
Drugs-..........................................6
--2.0
3.1
0.3
3.9
- 1.4
-1.9
Millinery................ _ _ _ __..
,o.o
-II.I
-30.9
-8.o
-36.5
12.5

Stocks (Mo. End.)
Nov. 30, 1926
compared with
Oct. 31, 1926
Nov. 30, 1925
-13.5
- 1 5.5
2.3
-18.5
1.2
-5.8
-'.2.0
-3.7
-3.7
7.6

t

I

'

THE MONTHLY REVIEW

7

RETAIL TRADE AT 35 DEPARTMENT STORES IN THE TENTH FEDERAL RESERVE DISTRICT
Sales
Stocks (Retail)
Outstanding Orders
Accounts Receivable
November 1926 November 30, 1926
ovember 30, 1926
November 30, 1926
Stores
compared to
compared to
compared to
compared to
Reporting
Nov. 1925
Oct.31,1926 Nov.30,1925 Oct.31,1926
ov.30,1925 Oct.31,1926 Nov.30,1925
Kansas City............... _ _ _ _ 3
4.8
- 1.6
-3.2
--22.1
0.3
8.4
-0.2
Denver........ _ _ _ _ _ _ _ 5
8.2
1.6
0.9
--2.2
2.9
2.2
1.0
Wichita..................._ _ _ _ 4
12.1
1.4
-5.0
-1.4
6.o
Oklahoma City.......... _ _ _ 3
16.1
-3.0
-o.6
-38.0
2.7
7.8
0.4
- 2.6
- 5.8
-30.0
--21.1
o.6
-3.8
Lincoln .. .....· - - - · ··············· 3
26.8
- 5.4
-44.7
10.3
28.9
Tulsa .. - - - - · - - - - 3
Other cities .................................. 14
4.6
- 1.4
-6.o
43.7
o.6
6.6
Total... ......· - - - - - - -35
NOTE: Percentage of collections in

Collections
November 1926
compared to
Oct.,1926 Nov.,1925

7.5

I.7

1.2
10.8
4.3
4.7
9.3
15.9

1.0
9.9
2.1

-3.4
34.5
I.I

8.6
-o.6
- 1.4
-15.7
0.9
3.1
3.2
5.4
ovember on oustanding accounts October 31, all stores reporting, 43.2 %. Collections same month last year 42.3% .

trade since 1920. The advent at Thanksgiving time of colder
weather, caused a brisk demand for winter goods. Much of
the improvement in retail trade was due to an early start in
buying for the Christmas season. This trade increased slightly
and at the middle of December, aided by Christmas savings
funds released by banks to their depositors, assumed high
record proportions.
The November record of sales in dollars at reporting department stores in cities throughout the district reflected an
increase over ovember 1925. Of 35 department stores reporting,
sales ... t 29 stores were larger and at 6 stores smaller than one
year earlier. Reports of retail stores .handling men's and women's
apparel, shoes, furniture and general merchandi~e, exhibited a
similar trend.
Stocks at nearly all of the retail stores at the end of November
were smaller than at the corresponding date in 1925, and with
heavy sales during December further reductions in stocks
were expected to be shown in year-end inventories.
COLLECTIO S: ovember collections reported by wholesalers were somewhat in excess of those for the same month
in 1925 with about the same amount of outstanding accounts.
Retail store reports showed about the same trend. The percentage of collections during the month on amounts outstanding
at department stores was 43.2 per cent as compared with 42.3
per cent for November 1925. Retail lumber yards reported
higher percentage of coJlections for November than in the
preceding month and a year ago, while distributors of implements reported collections generally good.

Lumber and Materials
Lumber orders during recent weeks were under production
and sripments, but as lumber stocks at the mills and diatributing yards were sti.11 much lower than on January 1, 1926,
and as .there had been practically no forward buying, which
was seasonably due, lumber manufacturers were anticipating
a large volume of business early in 1927. Pending an increase
in orders many mills were closing down or running short time.
Purchases were confined to the picking up of bargains and
urgent requirements of construction already under way. The
failure of the buyers to make heavy lumber purchases in the
late fall and early winter was stressed as a determining factor
of the situation. The reports indicated that retail yards were
doing a good business for the time of the year, ahd sooner or
later they must make up for their failure to round out their
stocks in the early winter rather than run them down to what
is possibly the lowest point in history.
Lumber production in the United State in the first fortyseven weeks of 1926 was o.8 per cent below orders on softwoods
and o. 5 per cent below orders on hardwoods, as reported by

the National Lumber Manufacturers Association for all associations. Total cut for that period was I'.2,547,471,473 feet of
softwoods and 1,382,526,357 feet of hardwoods.
The ret.ii) lumber trade in the Tenth District in November,
as reported by yards in towns and cities, showed a decrease
both as compared with the preceding month and a year ago.
The November business at reporting yards is compared with
that for October 1926 and November, 1925, in the following:
ovember 1926 compared to
Oct. 1926
ov. 1925
-8.2
Sales of lumber in board feet ..........................................- 13.8
Sales of all materials in dollars .... ..................................- 12.o
-g.4
Stocks of lumber at end of month ................................ - 4.8
- 1.3
- 4.5
Outstandings at end of month ........................................ -4.6
2.1
Collections during the month........................................ 2.5

Sales of lumber, ir. board feet, at retail yards i'n this district
during the first eleven months of 1926 were i.2 per cent smaller
than for the corresponding eleven months of 1925.
CEMENT: Mills throughout the district reported production of cement during November was about 7 per cent larger
but shipments were about 5 per cent smaller than in November
1925. Stocks of cement at mills at the close of November were
6.8 per cent more than one month earlier but I.? per cent less
than a year a go. The N ovem her record:
Nov., 1926
Barrels
Production ........·----·········································1,o21,ooo
Shipments............................................... - - - - - 895,000
Stocks, end of month ............· - - - - · ·····················1,988,ooo

Nov. 1925
Barrels
954,000
946,000
2,012,000

The output of cement mills in the Tenth District during the
year to November 30 was 12,112,000 barrels, against 12,129,000
barrels for the eleven months in 1925.
Production of face brick of all shades and textures at sixt}-onc
plants located in fifteen states was larger in November by 4.8
per cent than in the same month in 1925. The average production per single plant in eleven months was 0.25 per cent
above the average for the corresponding period ir the preceding
year.

Building
Building operations slowed down to winter schedules in the
latter part of November. As a result there were declines from
October in the value of contracts awarded in the Tenth District
as a whole, and also in the number and value of permits issued
in leading cities of the district.
Statistics reported by the F. W. Dodge Corporation showed
the value of contract awards in this district for November
was 5.5 per cent less than for November 1925. In only two
months of 1926, March and November, did the value!of awards
fall below those for the same months in the preceding year and

8

THE MONTHLY REVIEW

total awards from January 1 to November 30 were 32. T per cent
greater than for the like period in 1925. The value of building
contract awards for November and eleven months:
1926
November....................................._ _ _ _ _ 'f, 1 r ,979,000
185,857,000
Eleven Months....................

1925
'f, 12,681,000
140,676,000

Offi.cial returns from eighteen cities reporting their statistics
to the Monthly Review showed more than the usual seasonal
falling off in building activity. The heavier decreases were in
cities in the northern and Rocky Mountain sections where
early winter conditions prevailed, as with but two exceptions
the cities in the southern half showed a high rate of activity
and substantial increases in the value of permits over those
reported for the corresponding month in 1925. The record of
permits and their value for the reporting ci.ties follows:

Casper, Wyo ...................
Cheyenne, Wyo...............
ColoradoSprings, Colo ...
Denver, Colo ...................
Hutchinson, Kans...........
Joplin, Mo.......................
Kansas City, Kans ... ......
Kansas City, Mo .....·-·····
Lincoln, Nebr ..... ............
Muskogee, Okla.·-···········
Oklahoma City, Okla .....
Okmulgee, Okla ...............
Omaha, Nebr ...................
Pueblo, Colo ...................
St. Joseph, Mo ..............:
Topeka, Kans .................
Tulsa, Okla ... ..................
Wichita, Kans .................

Permits
1926
1925
14
15
18
14
84
59
449
454
42
35
22
58
82
I 51
279
41 7
68
97
21
6
1
103
53

3

5

88
72

156

JI
88
192
169

54
98
171
164

November...... .................. 1,798
October............................ 2,655
Eleven Months ................ 26,985

2,197
2,891
33, 177

63

Estimated Cost
Percent
1926
1925 Change
'f,
5,140
4.4
5,375 'f,
29,875
32,190
7.8
12
2
-54.4
57, 76
5,733
760,-150
1,059,600 -28.2
214,985 - 82.6
37,4 15
270,924
146.4
109.963
227,050 - 53.l
106,575
1,248,220
1,636,550 - 23.7
361,603 - 25.5
269,396
21,850
13.0
9,480
602,81 3
443,6o7
35.9
6,500
6,400
1.5
519,815
558,94o
7.5
70.2
107,520
361,305
100,915 -10.3
90,581
170,810
125,635
35.9
1,oq2,527
1,037,927
3.5
2
1
86.5
479,703
57, 94
'$ 5,864,46 5
7,273,230
84,945,54o

1,

6,597,377

-II.I

9,742,176
II4,426,552

- 26.1

--25.3

Business Conditions in the United States
Activity in manufacturing industries decreased in November
and December, while production of importa·n t minerals continued at a high level. Wholesale prices declined to the lowest
level in more than two years. Firmer money conditions in December reflected the usual seasonal requirements in connection
with holiday and end of year activity.
PRODUCTION: Factory employment and payrolls declined
in November, reflecting decreased activity in many important
industries, but owing to the large output of minerals the Federal
Reserve Board's index of production in basic industries advanced
somewhat during the month. Production of bituminous coal
and petroleum in recent weeks has exceeded all previous records,
and output of copper and zinc during the month of November
was in unusua1ly large volume. Pig iron production also increased slightly in November, but steel mill operations in that
month and in December were considerably reduced. Automobile production, which is not included in the index of production in basic industries, declined sharply in November for
the second consecutive month and was smaller than in any
month since August 1925. Textile mill activity was maintained

during November at approximately the same rate as in October.
The value of building contracts awarded showed less than the
usual seasonal decline in November and was slightly larger than
in November 1925. Awards for the first half of December likewise exceeded those reported in the corresponding period of last
year.
AGRICULTURE: The Department of Agriculture estimated the value of 55 principal crops raised in 1926, on the basis
of December 1 farm prices, at $7,802,000,000, compared with
'$8,950,000,000 in 1925. Of the decrease in the value of crops,
the decline in the value of the cotton crop accounts for $580,000,000, and that of the corn crop for about '1,260,000,000,
while the total value _of the wheat crop: increased by nearly
'$40,000,000.
TRADE: In November distribution of merchandise at wholesale and retail showed the usual decline from the activity earlier
in the autumn. Compared with a year ago, however, wholesale
trade was in about the same volume and retail trade larger.
Sales of department stores were about 7 per cent larger than
last year and those of leading mail order houses were 6 per
cent larger. Stocks of merchandise carried by wholesale firms
declined further in November and were smaller at the end of
the month than a year ago. Inventories of department stores,
however, increased slightly more than is usual in November.
Freight car loadings declined considerably in November and
December from the record high levels of October, although
the movement of coal continued heavy.
PRICES: The general level of wholesale prices declined in
November and prices of many important basic commodities
decreased further in the first half of December. The Bureau
of Labor statistics index of wholesale commodity prices for
November was 148, the lowest level since July 1924~ Bituminous
coal prices increased sharply during October and the early
part of November but in recent weeks have declined by about
two-thirds of the previous rise. Petroleum prices have been
reduced since early in November, and there have also been
declines in pig iron, copper, zinc, lead and silver. The fall in
prices of agricultural commodities, which has lasted with few
interruptions for over a year, continued in November. Grains,
however, have risen somewhat since the latter part of that
month. The clothing materials and house furnishings groups
have declined steadily in price during recent months to the lowest
levels of the post-war period.
BANK CREDIT: Loans and investments of member banks
in leading cities increased by over '1,100,000,000 during the four
weeks ending December 15, reflecting in part the growth in
the demand for credit and currency that usually occurs in
December. The increase was in loans on securities while commercial loans declined somewhat from their seasonal high
point in November. The volume of reserve bank credit showed
the usual seasonal increase after the middle of November but
was lower than in the corresponding period of 1925, partly
because there was a smaller increase this year in the amount
of money in circulation. Money market conditions became
slightly firmer in December than at the end of November.
Commercial paper rates were unchanged but open market
rates on Bankers acceptances advanced by one-eighth of one
per cent and call rates on security loans averaged higher for
the month.