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THE MONTHLY REVIEW Of Agricultural, Industrial, Trade and Financial Conditions in the Tenth Federal Reserve District FEDERAL RES ERVE BANK OF KANSAS CI TY M. L. McCLURE, Chairman and Federal Reserve Agent A. M. McADAMS, Assistant Federal Reserve Agent and Secretary Vol. 13 KANSAS CITY, Mo., The volume of business in the Tenth Federal Reserve District during the forty-eight weeks ending November 30, 1927, as measured by payments by check, was 1.1 percent greater than in the fortyeight weeks ending December 1, 1926. Later returns indicated this lead was maintained to the middle of December, though the final returns for the fifty-two weeks were needed to determine whether or not business in I 927 would pass the high mark set in I 926. OVEMBER brought a decline in the industrial output in the Tenth District, owing partly to the fewer working days in the month and partly to the slowing down of operations of some industries for the winter season. Distributive trade by wholesalers in six leading lines was smaller than in October, although the total of sales of all firms reporting was larger in dollars than in November 1926. Retail trade expanded and sales of department stores during the month and eleven months of 1927 were larger than in the corresponding month and eleven months in 1926. With the Christmas spirit abiding, the holiday trade in December was close to the previous high records. The final 1927 crop report of the United States Department of Agriculture and of the State Boards of Agriculture, released to the public on December 19, added about 17,600,000 bushels to the corn crop, but on other crops there were no important changes in estimated production from the figures presented one month earlier. The value of all crops produced in the states and parts of states which form the Tenth District, as estimated, was substantially larger than the farm value of crops produced in 1926. The index figure on prices of agricultural commodities was above that for non-agricultural commodities since July. The livestock industry moved into stronger position as the year advanced, due to the larger crops of corn, hay and other stock feeds, and to advances in prices of cattle. While receipts of meat animals, notably of cattle and hogs, at primary markets in November and eleven months were smaller than in the same month and eleven months of the preceding year, the increased value of cattle and heavier weights oflive stock more than offset the marked decline in hog prices and gave the year's marketings a greater value than that for meat animals marketed in 1926. _The dairy industry, and also the poultry industry, expanded during the year and the value of their products marketed was the largest in recent years, according to the reports. The production of flour declined seasonally in November from the higher rate maintained during the summer and fall, although the output for eleven months exceeded that for the like period N JANUARY 1, No. 1928 1 BUSINESS IN THE TENTH FEDERAL RESERVE DISTRICT [Statistics for November 1927, in which there were 24 business days, are compared with those for October 1927, a month of 26 business days, and with those for November 1926, also a month of 24 business days. Statistics for eleven months of 1917 also are compared with those for eleven months of 1926. Comparisons are made in the percentages of increase or decrease.J Nov. 1927 compared to General Oct. 19z7 Bank debits, 29 cities................ _ -4.2 Reserve Bank clearings.............._ - 3.6 Items handle - I.4 Trade Department stores 5.3 Wholesale stores, 6 lines.............. - 4•9 Lumber sales, retail yards·-········· 3.9 Grain receipts, 5 markets Wheat ............ -28.3 Corn .. 66.8 -36.5 Oats ...·-···· Live Stock receipts, 6 markets -20.0 Cattle.. Calve -13.6 Hogs.. 5.8 Sheep ........................ -58.0 Horses and Mules .................. - ... -17.8 Industrial output Flour.............. -16.5 Crude oil...... - 4.5 Soft coa -16.5 Cement...... _.. -18.3 -10.6 Face Bric Zinc ore (shipped) ...............·-······ -31.1 I.I Lead ore (shipped) -··················Meat packing, 6 center■ -10.7 Cattle -21.2 Calves .. - .. - .. Hogs.. 8.9 Sheep ...... _ -25.6 Building Contract awards, district.......... _ -1-4.-4 Permits issued, 17 cities .....·-······ -27.5 Value of permits -29.-4 Nov. 1927 compared to Nov. 1926 - 0.004 - 2.1 f\ 11 Mos. 1927 compared to 11 Moa. 1926 I.I 3.6 - 1.3 -o_.7 o.8 o.8 -2.2 J.8 0.2 -18.8 16.6 68.9 75• 2 __: 1.3 - 8.5 - ! 7.8 - 3.0 5.3 - 19.7 5.2 91·9 - .. 2.9 -7.3 - ·o.6 - 3.1 11.9 -16.6 24.8 -27.6 3.7 2.0 ' 38.6 ' - 5.9 - 5.6 3.1 -18.5 -25.1 1.0 -34.9 -28.2 -9.2 -14.2 -15.8 - 1.8 37.9 15•3 16.5 1 I l' H ' - 5.2 -10.7 3.3 - 5.6 f 7.6 - 3.7 7.2 in 1927, this district ranking first in flour production. Meat packing operations declined seasonally during.__the __month, _owing to the sm aller supplies of live stock. , -~ Production of crude petroleum during November was at a smaller daily average than in any month since April, but it exceeded production in November 1926, and for the first eleven months of the'yea/was~38.6 percent la~ger than in the like period in 1926. The production of soft coal and of lead and zinc orei was smaller than in either October or November a year ago, and This Copy Released.For Publication In Morning Newapapera December 28. THE MONTHLY REVIEW '.2 the accumulated production for the year to December I ran behind that for 1926. While prices of practically all minerals during the year were lower than those for the preceding year, it was estimated the value of all mineral production in 1927 would be larger than that of the preceding year on account of the heavy increase in crude petroleum produced. Construction activity held up during November and the value of contracts awarded in the district, and the value of building permits issued in leading cities, was the largest for November in recent years. The returns show a greater number of permits for new buildings were issued during the year to Decem her I than in the preceding year, although the estimated value of permits was smaller. Financial Major developments in the financial situation in the Tenth District during November, as revealed by the weekly condition statements of reporting member banks of the Federal Reserve System, were an increase in deposits to the highest point reached since October 1926, an upturn in the volume of loans and discounts to the highest level since the heavy crop movements in early autumn, and a further increase in investments with the total at the close of the month setting a new high record for the reporting banks. These and other changes in the principal resource and liability items of 65 reporting member banks are indicated by a comparison of the figures contained in the statement for N ovember 30 with those four weeks earlier and fiftytwo weeks earlier, which follow: Nov. 30, 1927 Nov. 2, 1927 Dec. 1, 1926 Total loans and discounts ................ '/,419,266,000 '/,417,211,000 '/,416,885,000 Secured by U. S. Obligations ...... 3,804,000 4,156,000 4,438,000 Secured by other bonds and Stocks_ ............ 120,225,000 120,761,000 104,189,000 All others ................. 295, 237,000 292,294,000 308,258,000 Total investments ............................ 217,867,000 209,687,000 195,758,ooo U. S. Securities ............ 102,406,000 94,438,000 101,164,000 Other bonds, stocks and Securities .................. u5,461,ooo I I 5,249,000 94,594,000 Total loans, discounts and investments .. 637, 133,ooo 626,898,000 612,643,000 Total deposits .................................... 654,464,000 644,179,000 635,362,000 Demand depostis .......................... 493,131,000 481,255,000 488,256,000 Time deposits ....... 161,148,000 160,708,000 146,065,000 Government deposits 2,216,000 185,000 1,041,000 Reserve balance with F. R. B......... 50,838,000 55,4 2 3,000 53,771,000 The volume of credit at the Federal Reserve Bank of Kansas City in the form of bills rediscounted for its members, bills purchased, and securities held, was in the latter part of November at the high level of the year. The combined total of these three items as of November 30 stood 1.5 percent above that reported four weeks earlier and 8.4 percent above that reported fifty-two weeks earlier. The increase was in bills rediscounted for member banks and in government securities held, as the bank's holding of purchased bills decreased. Total deposits as of November 16 were the largest for any weekly reporting date since March 5, 1920: though they decreased in the two weeks following and on November 30 were 5.8 percent above the total as of December I, 1926. There were small changes in other principal items. Conditions statements of the Federal Reserve Bank of Kansas City and branches are here presented as of three reporting dates: Nov. 30, 1927 Nov. 2, 1927 Dec. 1, 1926 Gold reserves·-········· 1, 88,442,317 1, 84,348,986 '/, 93,018,748 Reserves other than gold................ 6,402,751 5,464,825 4,921,689 Total reserves................................... 94,845,068 89,813,Su 97,940,437 Bills discounted............ 19,438,616 17,045,649 15,727,495 Bills purchased.................................. 8,925,796 II,278,986 17,217,294 United States Securities.................. 38,153,300 37,183,000 28,435,900 Total bills and securities 66,517,7I2 65,507,635 61,380,689 Total resources ............................._ 209,848,940 2o6,228,523 2u,502.399 F. R. Notes in circulation................ 65,582,775 64,741,775 69,687,400 Total deposits 92,950,075 88,913,845 87,822,580 BANK DEBITS IN TENTH DISTRICT CITIES FouR WEEKS ENDING Dec. 1, 1926 Nov. 30, 1927 12,561,000 Albuquerque, N. M ......... .............. 1, 14,169,000 '/, Atchison, Kans................................ 5,801,000 5,578,ooo Bartlesville, Okla............................ 17,588,000 25,154,000 10,u5,ooo Casper, Wyo.................................... 8,313,000 Cheyenne, Wyo.............................. 6,461,000 7,456,000 15,204,000 Colorado Springs, Colo.................. 16,205,000 Denver, Colo.................................... 168,281,000 168,673,000 Enid, Okla.________ 12,548,000 13,818,100 3,217,000 Fremont, Nebr................................ 3,377,000 Grand Junction, Colo.................... 3,621,000 3,988,000 Guthrie, Okla.................................. 3,654,000 3,457,000 Hutchinson, Kans.. ........................ 14,057,000 13,906,000 10,846,000 Independence, Kans...................... 10,976,000 17,II I,000 Joplin, Mo........................................ 18,044,000 Kansas City, Kans.......................... 17,805,000 18,599,000 Kansas City, Mo............................ 356,414,000 361,959,000 4,902,000 Lawrence, Kans ............ - - - 4,633,000 28,048,000 Lincoln, Nebr.................................. 28,596,000 12,203,000 Muskogee, Okla........ - - - II,295,000 90,150,000 Oklahoma City, Okla·-··················· 104,947,000 Okmulgee, Okla.............................. 7,394,000 9,501,000 171,474,000 Omaha, Nebr·--······························· 177,894,000 Parsons, Kans.................................. 3,107,000 3,043,000 Pittsburg, Kans.............................. 6,100,000 6,520,000 Pueblo, Colo.................................... 40,326,000 37,250,000 St. Joseph, Mo................................ 52,075,000 58,645,000 Topeka, Kans.. ................................ 16,641,000 15,866,000 Tulsa, Okla...................................... 115,231,000 124,450,000 Wichita, Kans.................................. 56,012,000 47,921,000 Total 4 weeks .................................. 1, 1,301,565,000 Total 48 weeks ...... - - - - - t,15,319,711,000 '/, 1,301,615,000 1,1 5,150,608,000 Per Cent Change 12.8 4.0 -30.1 -17.8 -13.3 6.6 -0.2 - 9.2 5.0 - 9.2 5.7 I.I I.2 5.5 - 4.3 - 1.5 5.5 - 7.4 1.9 16.4 -22.2 3.7 2.1 - 6.4 8.3 -JJ.2 4.9 - 7.4 16.9 .004 I.I BANK DEBITS: The volume of debits by banks to individual accounts (exclusive of charges to accounts of banks) in twenty-nine cities during forty-eight weeks ending November 30,1927, was $15,319,711,000, against $15,150,608,000 for the like period in 1926. an increase of $169,103,000 or 1.1 percent. Debits in the same cities during four weeks ending November 3, amounted to $1,301,565,000, compared with $1,358,526,000 in the preceding four weeks ending November 2, and $1,301,615,000 in the four weeks ending December 1, 1926. Allowing for a difference of two banking days on account of the Armistice and Thanksgiving holidays, the daily rate of debits for the four weeks under review was $59,162,045, compared with $56,605,250 for the preceding four full weeks ending November 2, and $54,233 ,959 for the four weeks ending December 1, 1926, in which there was two holidays. RESERVE BANK CLEARINGS: Check collections for banks through the Federal Reserve Bank of Kansas City and branches at Omaha, Denver and Oklahoma City during the twenty-four banking days in November ran at an average of $42,205,554 per day, as compared with a daily average of$40,394,461 for the twenty-six banking days in October, and a daily average of $43,129,625 for the twenty-four banking days in November 1926. Figures showing total collections, or clearings, for November and eleven months, with comparisons, follow: ITEMS AMOUNT 1927 1926 1927 1926 November.................... 6,u7,167 5,906,243 '/, 1,012,933,000 '/, 1,035,1n,ooo October........................ 6,203,195 6,001,240 1,050,256,000 1,078,555,000 Eleven Months ............63,740,587 64,168,009 10,566,749,000 10,710,660,000 The total for eleven months of 1927 reflect a decrease of $143,911 ,ooc or 1.3 percent in amount and a decrease of 427,422 or 0.7 percent in the number of items handled) as compared with the record for the first eleven months of 1926. During· November 3,366 banks in this district shared in this collection ·service. Of these"'971 rwere mt-mbers of the Federal Reserve System and 2,395 were non-members. THE MONTHLY R~VTEW Savings in Banks 3 Trade RETAIL /!""" Sales..,'at.,....retai] · stores";'·throughout the district during November reflected seasonal expansion in nearly all lines and the combined total for all stores reported was about 2 percent above that for October and 1.1 percent above that for November 1926. At the middle of December reports indicated Banks Dec. 1, 1927 N JV. 1, 1927 Dec. 1, 1926 retail trade was in about the same volume as a year ago. Denver, Colo.......·-····-·-· 6 1, 47,978,962 1, 47,318,721 47,539,422 ~' Sales in November at 36 department stores reporting to the Kansas City, Kans............ 3 2,220,320 2,188,553 2,186,595: Kansas City, Mo.............. 9 17,304,021 17,023,605 15,681,295 ~1 Federal Reserve system were, in dollars, 5.3 percent larger than in October and o.8 percent larger in than November 1926. EightLincoln, Nebr.........·-········ 3 3,093,714 3,044,241 3,166,069) Oklahoma City. Okla. __··· 6 8,206,059 0,142,904 7,677,742 een stores reported their sales were larger than a year ago while Omaha, Nebr____ 5 8,405,244 8,247,548 7,739,716 eighteen stores, mostly in the smaller cities, reported decreases. St. Joseph, Mo____ 6 8,143,652 7,935,772 7,990,146 The November business of department stores carried the accumTulsa, Okla .... _ _ _ _ 6 16,354,674 16,n5,289 14,559,011 ulated total of sales for the first eleven months of r927 to 1.8 Wichita, Kan...____ 8 6,036,466 \~5,760,856 4,964,180 Other Citic.,______ 5 1,241,153 1,236,499 1,232,312 percent. above that for the same period in 1926. Sales of men's and women's clothing and •hoe«- at single line Total.......... _ _ _ _ _ 57 f,n8,984,271 f,n7,013,98& f,n2,736,488 stores were affected to an extent by unseasonably warn1 weather Deposits to Christmas Savings accounts, as distinguished during the greater part of the month and there were decreases from regular savings accounts, mounted to higher totals in 1927 both as compared with the preceding month and thr s'lme month than in past years. In Kansas City, Missouri, there were in the preceding year. Sales at retail furniture stores were rather 20,773 Christmas savings accounts with total deposits of $1,455,- quiet during the forepart of the month. but showed con::-iderahle 090, as reported by the Clearing House Association. In Kansas activity at the close. Sales at chain stores in this district during City Kansas, fifteen banks carried 13,600 such accounts with de- the 24 business days of November were 4 8 percent smaller posits amounting to $561,300. In Lincoln, Nebr., seven banks than in the 26 business days of October, but were 8.1 percent reported 2,420 accounts and $113,000 of deposits, while three larger than in November 1926. banks in Oklahoma City reported 3,261 accounts and $133,The percentage of increase or decrease in November sales of 850 of deposits. In Tulsa one bank reported 2,000 Christmas all reporting stores, compared with sales in October 1927 and savings accounts and $1 p ,ooo of deposits. In Omaha 7,498 N ovem her I 926, is shown in the following summary: accounts and $348,042 of Christmas savings were reported. In Sales for November 1927 Wichita seven banks carried 4,070 accounts and $180,459 of compared to Christmas savings deposits. Statistics reported by commercial banks and savings banks in leading cities showed savings rleposits increased 1.7 percent between November I and December 1~ and on the last mentioned date the total for 57 reporting banks stood 5.5 percent above that for December 1, 1926. Savings accounts also increased. Oct. 1927 Failures The report of R. G. Dun & Company for the month of November showed 113 business failures in the Tenth District with liabilities totaling $2,193,935. These figures indicated 14 more failures than in October and 8 more than in November 1926, an increases in liabilities of $489,852 over October and $1,416,143 over November 1926. The November record: 239 LIABILITIES 1927 1926 $ 5,589,818 '/, 3,425,829 8,367,87 1 5,93 1,843 I ,486,840 2,620,000 3,449,3I5 2,775,023 2,555,698 3,067,845 1,204,572 1,875,I22 3,I8 2,548 5,633,337 3,476,584 806,848 l,ISJ,335 72I,ooo 2,I93,935 777,792 8I8,200 1,543,071 2,667,857 3,5I6,283 Total, United States ........._ _ _ _ 1,864 1,830 f,36,I46,573 f,32,693,993 F. R. District First, Bosto Second, New York-....... Third, Philadelphia................................ Fourth, Cleveland.................................. Fifth, Richmond................... Sixth, Atlant...___ _ _ - - - - · · Seventh, Chicago....... Eighth, St. Louis...... .............................. Ninth, Minneapolis........ TENTH, KANSAS CITY.................... Eleventh, Dalla Twelfth, San Francisco.... NUMBER 1927 1926 185 221 350 363 72 147 137 99 210 72 134 120 92 237 69 83 105 93 68 113 68 322 95 Department stores.... - - - - - - - - - - Apparel stores-·········· - - - - - - - - - - Shoestores .......... _ _ _ _ _ _ _ _ _ _ _ _ Furniture stores ........ - - - - - - - - - - Chain stores.......................... _ _ _ _ _ _ _ _ _ 5.3 - 4.2 -15.0 -28.5 - 4.8 Nov. 1926 o.8 -1.5 -g.o -7.0 8.1 WHOLESALE: Distribution by wholesale firms in this district whose trade statistics are compiled for publication in the Monthly Review was smaller in November than in October, though if allowance be made for the difference in the number of business days it would appear the average daily volume for the month would be slightly above the average for the preceding month. The combined sales volume for November, however, showed a small increase over that for the corresponding month in 1926. The summary of wholesale reports shows sales in each of the six lines reported were smaller in N ovem her than in Octo her, while as compared with November 1926 sales of furniture, drugs and hardware were larger, and sales of dry goods, groceries, and millinery were smaller. Reports of firms on November wholesale trade said underlying conditions in their trade territory were generally good and the best in recent years; but because of a continuance of the RETAIL TRADE AT 36 DEPARTMENT STORES IN THE TENTH FEDERAL RESERVE DISTRICT SALES • (RETAIL) STOCKS OUTSTANDING ORDERS AccouNTS RECEIVABLE COLLECTIONS Stores Nov. 1927 II Months 1927 November 30, 1927 November 30, 1927 November 30, 1927 November 1927 compared to compared to compared to compared to compared to compared to Reporting Nov. 1926 I 1Months 1926 Oct. 31, 1927 Nov. 30, 1926 Oct. 31, 1927 Nov. 30,1926 Oct. 31, 1927 Nov.30,1926 Oct. 1927 Nov. 1926 Kansas CitY··-·················· 4 -3.7 -3.7 -1.3 1.5 -30.1 -14.9 10.3 -1.6 4.1 -5.2 Denver______ 5 -0.2 0.2 0.9 3.2 7.0 - 7.4 1.1 -0.9 2.0 -1.5 Oklahoma City___ 3 17.0 13.8 -4.4 11.3 -14.4 17.8 3.3 35.1 6.8 20.9 Omaha.. _ _ _ _ _ _ 4 2.0 -2.1 1.7 12.4 5.7 7.6 8.7 Lincoln-------··········-···· 2 6.8 0.2 -6.8 Topeka.. ___ 3 -(,.7 -1.9 0.4 16.7 -o.6 1 3·3 Tulsa........ _ _ _ _ _ 3 5.2 9·9 8.5 -'l.8 7.9 -(,.6 13.6 0.3 9.7 Other Cities.·-·················· 12 1.0 4.0 Total... ........·-···················· 36 o.8 1.8 -1.6 2.7 - 8.7 - 3.7 4·9 5.9 6.o 2.4 NOTE: Pcrcenage of collections in November on outstanding accounts October 31, all stores reporting, 41.3%. Collections same month last year 42.2 % THE MONTHLY REVIEW 4 WHOLESALE TRADE IN THE TENTH FEDERAL RESERVE DISTRICT SALES OuTsTANDING (Mo. END) CoLLECTIONS STOCKS (Mo. ENo.) Reporting Nov. 1927 compared with Nov. 30, 1927 compared with November 1927 compared with·Nov. 30, 1927 compared with Stores Oct. 1927 Nov. 1926 Oct. 31, 1927 Nov. 30,1926 Oct. 1927 Nov. 1926 Oct. 31, 1927 Nov. 30, 1926 - 4.8 -10.9 -6.6 -10.2 _.i} 0.7~ -6.3 ~-4 13.9 Dry Goods .......... - - - - - 5 6 - I.4 - 2.6 -2,1 - 6.5 3.3) 2.9 1.4 -5.0 Groceries .. - - - - - - - - 5.9 4.5 -3.4 3.0 -1.3 6.9 -2.7 -8.8 Hardware ............ - - - - - •9 - 9•7 5.8 -3.6 - 0,1 3.7 Z.6 -1.7 -6.3 4 Furniture.-..· - - - - - - Drug..__ _ _ _ _ _ _ __ 6 - 5.4 9.0 3.3 4.6 -'1•7 1.4 -3.1 l.o Millinery _ _ _ _ _ _ _ _ __ -49.5 - 4.3 3 policy of buying from hand to mouth, with retail merchants not inclined to anticipate their wants by buying in advance of the season, the business of wholesalers was restricted. Wholesalers of dry goods reported that, as the heaviest fall orders were filled early, sales in November were considerably under those for October, while the unfavorable comparison with November 1926 could be partly accounted for by unseasonably warm weather affecting the sale of winter goods. A moderate contraction in the consumption of textiles was disclosed by the reports. Orders taken for spring goods to be shipped in the early part of 1928 were reported in excess of orders taken in the same period a year ago. Trade with wholesalers of groceries continued moderately heavy and in about the same daily volume as in the preceding month, but showing a decrease as compared with November 1926. The hardware trade exhibited considerable activity and the wholesale furniture trade was substantially larger than a year ago. Wholesalers of drugs reported the volume of their business was heavy and above that of a year ago. COLLECTIONS: Department store reports, reflecting the general retail trade, showed the percentage of collections during November on amounts outstanding at the end of October were 4 1.3 percent.. This figure compares with 41.4 percent for October and 4 2.2 percent for November 1926. Wholesalers of groceries reported collections a shade better than in the preceding month and approximately the same as in the corresponding month in 1926, while wholesalers in other lines reported very slight changes in the ratio of collections to outstandings. Building Building and general construction in this district in November exhibited its usual tendency to slow down for the winter season, although the statistical reports reflected greater activity than in N ovem her 1926. Building contract awards in the Tenth District as a whole totaled f,16,516,000 for the month of November, compared with NOVEMBER BUILDING IN TENTH DISTRICT CITIES ESTIMATED CosT Per Cent PERMITS Change 1926 1926 1927 1927 30,400 '$ 14 $ Casper, Wyo.. 5,375 465.6 5 18 28 70,840 32,190 120.1 Cheyenne, Wyo .......·--····16.6 66,79'1. Colorado Springs, Colo...... 63 57,276 59 1,103,500 76o,450 Denver, Colo 5n 45• 1 454 IO.I 32 37,415 75,335 Hutchinson, Kans.·-··---·· 35 '1.2 '1.9 '17°,9 24 -'7l,3 Joplin, Mo 77,773 10 82 68 Kansas City, Kans.............. 6,575 -29-4 75, 20 5 1,248,'1.'1.0 - 13.3 1,081,725 Kansas City, Mo ................ '1.41 '179 68 8.o '1.69,396 z90,73o Lincoln, Nebr_ .. 94 '1.1 '1.1,850 1,504.1 13 35°,500 Muskogee, Okla_···········-·· 602,813 I 51.5 103 , 1,516,z85 Oklahoma City, Okla...-.. '1.12 244,980 88J 69j 558,94o -56.2 Omaha, Nebr.-----······-·102 101,36'1. 107,5zo - 5.7 7'1. Pueblo, Colo-.. 90,581 -18.1 74,zo5 JI 47 St. Joseph, Mo.·-··········-··88 170,810 0.2 171,130 84 Topeka, Kans.. 1,n6,995 8.6 295 19'1. i,037,9z7 Tulsa, Okla___ 365,880 169 479,703 -23.7 Wichita, Kan 177 16.5 2,070 1,795 $ 6,8'1.3,637 $ 5,857,965 Total November Total Eleven Months.-..... 27,908 '1.6,904 $78,324,388 $84,37 1•159 - 7.2 $19,316,000 in October and $n,979,ooo in November 1926, according to the F. W. Dodge Corporation reports. Contract awards in this district for the first eleven months of 1927 amounted to f,200,091,000 against f,185,858,000 for the same period in 1926, indicating an increase for the year to November 30 of $14,233,000 or 7.6 percent. Reports of building departments in seventeen leading cities for November, although showing a seasonal decrease from October in the number and value of permits issued, also showed increases over November 1926 of 15.3 percent in the number of permits issued, and of 16.5 percent in the estimated cost of the buildings. In point of the building investment the month's total was the highest for November since 1922. Ten of the seventeen cities reported increases over November 1926 in permits issued for new buildings, and ten cities reported increases in the estimated cost of buildings. The building record for the seventeen reporting cities covering the first eleven months of 1927 showed an increase of 3.7 percent in the number of permits issued over the first eleven months of 1926. The amount of money invested in buildings, indicated by the estimated cost of construction, was 7.2 percent less than in the eleven month period of 1926. Lumber and Materials The lumber movement in the United· States during the four weeks ending December 3 reflected a seasonal decline in operations at mills. While total production,shipments and orders were below those for the preceding four weeks, they exceeded those for the corresponding four weeks in 1926. The consolidated reports of eight softwoods associations and two hardwoods associations, compiled by the National Lumber Manufacturers Association _follow: FouR WEEKI ENDING Dec. 3, 1927 Nov. 5, 1927 Dec. 4, 19z6 Feet Feet Feet Cut.... _ _ _ _ _ _ _ _ 1,n4,750,063 1,197,394,790 1,0'1.9,543,666 Shipments ................ _ _ _ _ 1,002,167,909 1,135,685,049 976,917,664 Orders .......... _ _ _ _ 962,279,3II 1,098,409,624 889,738,855 Reports for the first forty-eight weeks of 1927 show that softwoods lumber production ran below that for the same period in 1926, although the hardwood lumber movement showed but very slight change. The figures for eight softwood associations and two hardwood associations are shown seperately in the following: FORTY-EIGHT WEEKS ENDING Dec. 3, 19z7 Dec. 4, 1926 Softwoods Feet Feet Cut .... - - - - - - - - - - - - u,526,094,18'1. u,787,213,908 Shipments_...... u,477,073,015 12,863,764,76'1. Orders.............. 11,346,z4I,4'1.'1. 12,587,441,085 Hardwoods Cut.... _ _ _ _ _ _ _ _ _ _ __ 1,404,8 II 000 1,410,851,300 1 Shipments.... _.. _ _ _ _ _ _ _ __ 1,428,385,000 1,419,087,981 I ,448,8 52,899 Order"---- - -- - - - - - - I ,43z,389,ooo RETAIL LUMBER TRADE: Sales of lumber in board feet at 187 retail yards in cities and towns in this district during November were the largest for any month in ·the year, although small- 5 THE MONTHLY REVIEW • er than in November 1926. Sales of all materials in dollars for the month were larger than in either the preceding month or a year ago. November business at the reporting yards is here compared with that for October 1927 and November 1926 in percentages of increase or decrease: Nov. 1927 Compared to Oct. 1927 Nov. 1926 Sales of Lumber, Board Feet...· - - -······················ 3.9 - 2.2 Sales of Lumber and Materials, dollars.......................... 2.8 5.0 Stocks of Lumber, end of Month............ -4.5 - 6.1 Outstandings end of Month ..... 1.0 -n.7 Collections during Mont.. ~----···························· -1.0 -14.6 Sales of lumber at these reporting yards during eleven months of 1927 were 18.8 percent under those for the first eleven months of 1926 ,while sales of all materials in dollars during the eleven months of the year decreased 13.3 percent. CEMENT: Production and shipments..of Portland•cement at mills in this district were smaller in November than in October and larger than in November 1926, while stocks on hand at mills were smaller than a year earlier, according to the report of the bureau of mines, United States Department of Commerce. The returns in detail: Nov. 1927 Barrels 1,059,000 1,005,000 1,581,000 Production ................ Shipment-.. Stocks, end month .... Oct. 1927 Barrels 1,296,000 1,466,000 1,526,000 Nov. 1926 Barrels 1,021,000 881,000 1,992,000 The record of production for this district covering eleven months of 1927was11,404,000 barrels, against 12,088,000 barrels in the same period in 1926. Shipments were 12,095,000 barrels, against 12,171 ,ooo barrels. FACE BRICK: Production of face brick at"65 plants located in seventeen states, including states in this district, declined seasonally in November and was about 10 percent below October but about I percent above November a year ago. For the year to December I there was an increase of 3. 1 percent in production and a decrease of I percent in shipments as compared with the same period in 1926. Stocks on hand at the end of November were 31.9 percent larger than a year earlier, while unfilled orders were 5.6 percent larger. Flour Production With the inventory period near at hand and new bookings ot flour orders seasonally lighter, milling operations in this district were reduced in November to an average of 64.6 percent of fulltime capacity, compared with 75 percent in October and 78 per. cent in November 1926. The output of flour fell 16.5 percent below that for October, and 16.6 percent below that for the same month in the preceding year. Statistics of flour production compiled from the Northwestern Miller's direct reports are here shown. Atchiso,.._____ _ _ _ _ __ Kansas City_ _ _ _ _ _ _ __ Omaha.............................. - - - - Salina.....- ............................................... . St. Joseph ............................................... . Wichita.................................................... Outside...... ................................................ • Total...........................- - - - - Nov. 1927 Barrels 124,411 66o,053 102,965 168,401 109,335 153,367 683,308 Oct. 1927 Barrels 132,627 74 2,790 107,697 185,051 190,010 1 93, 1 35 845,417 Nov. 1926 Barrels 123,774 622,925 98,107 146,773 185,783 213,365 1,008,790 2,396,727 2,399,5 17 The accumulated total of flour produced at Southwestern Mills for the first eleven months of the year was 23,212,838 barrels, an increase of 447,312 barrels or 2 percent over the like period in 1926. Agriculture Final reports of the United States Department of Agriculture and State Boards of Agriculture, in December, indicated but small changes in the year's production of farm crops in this district from estimates announced in November. Yields of corn, spring wheat, barley, rye, white potatoes, sweet potatoes, grain sorghums, sugar beets, hay and tobacco have exceeded those in 1926, while yields of winter wheat, cotton, oats and broom corn were smaller than in the preceding year. The fruit and berry crops in this district as a whole were smaller than in 1926, with a few exceptions. There was an increase in production of vegetables and truck crops, particularly in the irrigated sections, and heavier shipments were reported. · According to all reports the farm production in the district had a much greater value than in 1926, due largely to the higher prices paid producers during the year. The states ofNebraska, Colorado and Wyoming reported the value of 1927 crops exceeded that of all former years. Kansas reported the highest value of field crops, exclusive of live stock and poultry and their products, since 1920. In Oklahoma the value of the year's crops was reported larger than in 1926 notwithstanding a greatly reduced yield of cotton. Missouri made an excellent showing of crop values in the face of the fact that yields of the leading crops were smaller than in the preceding year. The value of crops produced in the nineteen Missouri counties in this district was slightly above that for 1926. In the thirteen counties of New Mexico, which are included in this district, the value of 1927 crops was but slightly different from that of 1926 crops. WINTER WHEAT: ' . While November weather was favorable for farm work and f~r gath~ring late crops it was quite unsatisfactory for wheat sown in the fall. Over the major part of the wheat belt, in the eastern half of the district, wheat entered the winter in fair to good condition and with sufficient moisture for its present needs. In western Kansas and over a !arge portion of adjoining states, ~here there w~~ scant ram~all during the fall, wheat was tn poor cond1t10n and .needmg moisture. This condition was described in the first_...weekly Kansas Bulletin in December as follows: "Wheat in the eastern third of Kansas has sufficient soil moisture for the present and covers the ground well. Towards the central third the need of a good rain or snow is becoming apparent, though the crop there is not suffering. In the western third, which has had a dry spell extending over more than two months, wheat is suffering badly and in poor shape to enter the winter. Most of the fields in that section are bare and germination and stooling have been poor." COTTON: The December report of the crop reporting board of the United States Department of Agriculture indicated 56 percent of the 1927 cotton. crop in the Uni~e~ s.tat~s ~as produced in the eight states lymg west of the M1ss1ss1pp1 river. In 1926 the eight states, constituting the southwestern Cotton Belt, produced 57 percent of the Nation's cotton crop. The report by states on acres for harvest and estimated production follows: LEFT FOR HARVEST PRODUCTION 1927 1926 Dec. 1927 Final 1926 Acres Acres Bales Bales Texas ...... _ _ _ _ _ _ 16,270,000 18,363,000 4,280,000 5,628,000 Oklahoma................................ 3,433,000 4,912,000 990,000 1,773,000 Arkansas.................................. 3,045,000 3,782,000 980,000 1,548,000 Louisiana ................................. . 1,560,000 1,960,000 545,000 829,000 281,000 488,000 104,000 218,000 Missouri ................................... . New Mexico ............................ 95,000 120,000 70,000 75,000 137,000 167,000 93,000 122,000 Arizona .................................... 128,000 16o,ooo 94,000 131,000 California................................. . Eight S. W. States .................. 24,949,000 29,952,000 United States .......................... 40,168,000 47,653,000 10,324,000 1 7,977,000 6 TH1~ MONTHLY REVIEW Abandonment of acreage of cotton after July 1 in the United States totaled 1,944,000 acres or 4.6 percent. In Oklahoma the abandonment was 18 percent of the acreage under cultivation July I, in Texas 4 percent, in Missouri 4.5 percent, in New Mexico 5 percent and in Arkansas 3 percent. Cotton ginned in the United States from the 1927 crop, prior to December 1, totaled 11,742,806 bales, against 14,644,070 bales in the same period in 1926. Oklahoma ginnings to December 1 were 867,736 bales, against 1,164,440 bales; in Missouri 78,787 bales against 161,775 bales; in New Mexico 57,408 bales against 47,870 bales; in Texas 3,882,446 bales against 4,648448. Cottonseed products manufactured at Oklahoma mills from August 1 to November 30, inclusive, were: Manufactured On Hand Season Nov. 30 Crude oil, pounds _ _ _ _ _ _ _ _ _ _ _ 47,255,335 13,339,379 Cake and meal, tons.................................................. 76,001 13,307 Hulls, t o n s - - - - - -···················- - 41,740 17,229 Linters, _running bales .............................. _ _ _ 28,722 12,576 Cottonseed received at Oklahoma mills during the season to and mcluding November 30 totaled 267,029 tons against 321 ,990 in the same period in 1926. Seed crushed was 160,125 tons against 188,054 tons. Stocks at mills November 30 were 128,320 tons against 134,316 tons one year earlier. Grain Marketings The November returns from five leading grain ~markets in this district showed receipts of wheat, oats, rye and barley were smaller, and of corn and kafir larger, than in October. Receipts of all of the six classes of grain during the month exceeded those for November 1926. Receipts at the five markets: Hutchinson ................ Kanaas CitY·--··········· Omaha ...... _ __ St. Joseph.................. Wichita .....·-·············· Nov. 1927.................. Oct. 1927.................... Nov. 1926.................. Eleven Mos. 1927...... Eleven Mos. 1926...... Wheat Corn Bushels Bushels 1,251,450 53,750 5,506,200 2,505,000 1,700,800 1,164,800 574,000 688,500 1,439,100 ~ 60,000 • 4,472,050 10,471,550 14,607,400 8,979,450 167,056,800 170,963,900 Oats Bushels 436,000 690,000 100,000 22,500 Rye Bushels 1,200 43,500 1,500 Barley Bushels 2,500 190,400 1,750 59,6oo l-48,800 I 2,400 - - - 1,248,500 208,200 '343,450 2,680,700 1,965,500 312,200 '. ;,'503,700 2,646,700 712,500 149,200 114,300 42,339,400 12,181,500 1,829,300 2,583,800 46,269,050 13,211,500 1,621,400 892,900 Receipts of kafir in November were 850,200 bushels as compared with 171,700 bushels in October and 596 ,000 bushels in November 1926. Receipts of hay at Kansas City in November totaled 14,388 tons, compared with 26,412 tons. The wheat market during the week ending December 3 was firm, while prices of oats and barley advanced to new high points on the season's crop. Choice Kansas wheat was in good request at Kansas City, where 12¾ percent protein No. 2 hard wmter wheat was quoted at $1.39 @ 1..4-5 per bushel. Receipts of corn, a large proportion of which was new grain, were readily taken. Elevators at Kansas City and other western markets were taking some corn for storag'!. Kansas CitY·-·········· Omah St. Joseph-.. Denver Oklahoma City Wichita.. ·-···- Live Stock The-outstanding feature of the year in livestock was the high price of cattle, which brought substantial improvement to all branches of the industry, and more satisfactory money returns than during the World War period, considering the lower feed costs and important gains made by grass cattle. A year ago there was a strong market demand for li1Zh.tweight ..and yearling cattle, although heavy cattle were in better supply _but selling at a discount of $1 to '/,2 per hundred pounds. In 1927 heavy cattle were in smaller supply and commanding a premium over lightweight and yearlings. This was encouraging to feeders, and with bumper crops of corn~and hay and plenty of roughage, they were optimistic regarding feeding operations. There is a reported tendency toward building up herds on farms and ranges, and breeding stock has been in strong demand. In all parts of the district where feed is abundant experienced cattlemen were reported as holding on to their stock and increasing the number of their cows. During the latter part of the year there was a material slump in the hog industry, with rather moderate receipts and relatively low prices as compared to prices paid for cattle and sheep. The stockyard's reports showed hogs marketed in 1927 averaged a few pounds heavier than those marketed in 1926, indicating that the increase in weight would more than offset the decrease in the number of hogs marketed. Reports indicate there has been a heavy liquidation of hogs in recent months ea~t of a line drawn north and south through Minnesota, Iowa and Missouri, where the year's corn crop was poor, but west of that line where there is larger corn production the tendency is to hold hogs. Last year the region east of the Mississippi River, having large quantities of soft and chaffy corn, made large purchases of feeding lambs at prices which western feeders did not feel justified in paying. This year fewer lambs are on feed in that region, although west of the M ississippi river there is a reported notable increase in the number of lambs being fed. Colorado reported an increase of 40 percent over last year. In the Arkansas Valley the increase over last year was said to be 50 percent, and in western Nebraska 100 percent. MARKET MOVEMENTS: The six principal livestock markets in the Tenth District received 20,034,563 meat animals during the first eleven months of 1927, compared with 20,512,247 in the same period in 1926. The difference between these totals indicated a decrease for the year's eleven months period of 477:684 or 2.3 percent in the number of meat animals available for slaughter at packing plants, for shipment to the country as stockers and feeders, and for shipment to other markets. The combined reports of the six markets show decreases for the year were: Cattle 147,627, or 2.9 percent; Calves 59,909 or 7.3 percent; Hogs 41,230 or o.6 percent; Sheep 228 1918 or 3.1 percent. Reports from twenty leading markets in the United States showed 2,208,000 fewer livestock received in the first eleven months of NOVEMBER MOVEMENTS OF LIVE STOCK IN THE TENTH DISTRICT STOCKERS AND FEEDERS RECEIPTS Sheep Calves Hogs Calves Cattle Hogs Sheep Cattle 209,597 46,956 10,417 23,036 86,069 97,226 15,876 175,638 138,828 58,802 5, 144 123,4 29 163,382 53,5-47 9,759 2,001 20,366 12,261 2,762 123,978 97,666 48,984 10,696 8,960 116,489 12,710 1,293 203,u5 29,690 2o3,343 75,469 20,138 27,416 10,192 ·------------- .......................... 994 39,427 17,098 49,4o3 5,363 November 1927____ 580,741 October 1927·--································· 726,135 November 1926................................ 598,793 Eleven Mont hs 1927........................ 4,886,640 Eleven Months 1926.. 5,034,267 ------- 107,411 522,276 556,817 124,292 493,449 1,325,647 101,983 650,114 529,398 764,578 7,208,416 7,1 74,929 824,487 7,249,646 7,403,847 • 243,758 3o4,3o5 236,672 1,306,714 1,370,010 26,837 23,468 16,-472 101,779 75,430 19,616 300,o64 849,918 17,7 14 16,682 262,613 158,792 2,559, 137 154,716 2,1 81,692 PACKERS PURCHASES Calves Hogs 23,86o 137,896 104,966 5,701 102,645 7,7 13 2,646 19,682 18,131 16,439 7,534 3,622 46,272 9,683 Cattle 101,837 71,752 32,937 16,066 Sheep 6o,285 97,5o5 74,100 12,635 316 3,516 - - - ---- ---- 250,4o6 51,076 -4 27,900 248,857 280,486 64,856 392,834 334,668 508,101 253,489 275,782 59,553 2,613,624 5i1,343 5,599,499 3,604,231 2 ,757,793 60'1,732 5,4 20,433 3,8 17,335 • THE MONTHLY R~VIEW 1927 than in the same period in 1926. Cattle at the twenty markets decreased 1,664,000, sheep decleased 777,000, while hogs increased 233,000. November receipts of livestock at six markets in this district showed more than the usual seasonal decline from October in cattle. calves,-and sheep, although receipts of hogs were the larg est since August. Compared with November 1926 receipts of cattle and hogs decreased while receipts of calves and sheep increased. Receipts of horses and mules at the six markets during Nov,ember tocaled 14,935, compared with 18,193 in October and 7,782 m November a year earlier. Total receipts of horses and mules during the first eleven months of 1927 were IIJ,417, against 101,379 for the first eleven months of 1926, an increase of 12,038 or 11 .9 percent. 4 FEEDER MOVEMENTS: The record of four markets cover: ing the first eleven months of 1927 showed shipments of stocker and feeder cattle fell 4.6 percent below those for the corresponding period in 1926. However, the countryward movement of calves increased 34.9 percent, hogs increased 2.6 percent, and sheep increased 17.3 percent over the totals for the eleven months in 1926. The November movement of stock and feeding cattle from the four reporting markets to the country were 19.9 percent smaller than in October but 3 percent larger than in November 1926, and the largest for November since 1923. Countryward movements of calves and hogs during the month exceeded those for the preceding month and a year earlier. The outgo of sheep to feed lots in the corn belt during the month fell 64.7 percent short of the October record , but was 14.3 percent larger than in November 1926 and the largest for November since 1924. Meat Packing The slaughter of cattle, calves and sheep declined in November mainly the result of smaller supplies of these classes of livestock at the six leading livestock markets. There was a small increase over October in the slaughter of hogs, but operations in that branch of the industry were not up to a year earlier. The record of meat packing for eleven months of the year, however, showed 179,066 or 3·.1 percent more hogs were slaughtered than in the corresponding eleven months of 1926. On the other hand, there were decreases of 144,169 or 5.2 percent in the number of cattle slaughtered, of 64,389_or 10.7 percent in calves, and of 213,104 or 5.6 percent in sheep. ~ The market for dressed beef and dressed lamb was slow and irregular during November, due to adverse weather. In the domestic field there was a good trade in pork products, and especially good in the case of fresh pork cuts. Stocks of provisions, pork and lard, at Kansas City on November 30 were 23,522,600 pounds, compared with 25,708,200 pounds a month earlier and 21,612,600 pounds on November 30, 1926. 7 rels or 4.5 percent less than in the thirty-one days of October but exceeded that for November 1926 by 5,577,000 barrels or 24-8 percent. The November production brought the total for the first eleven months of 1927 to 313,545,000 barrels against 226,160,000 barrels in the like period in 1926, an increase of 87,385,000 barrels or 38.6 percent. Production figures for the five states follow: GROSS PRODUCTION *Nov. 1927 Barrels Oklahoma. ___ ··········································· 23,007,000 Kansas.. -----························ 3,200,000 Wyoming.................................................. 1,588,000 Colorado.......................... _ __ __ 193,000 New Mexico ........ _ _ _ _ _ _ _ 66,ooo *Oct. 1927 Barrels 24,264,000 3,2 55,000 1,574,000 206,000 69,000 Total.... _ _ _ _ _ _ _ _ _ _ _ 28,054,000 29,368,000 22,477,000 DAILY AVERAGE *Nov. 1927 Barrels 766,900 Oklahoma·----·-······································ Kansas ............................._ _ __ 106,700 52,900 Wyoming----···························· Colorado ................................................ .. 6,400 2,200 New Mexico............................................ *Oct. 1927 Barrels 782,700 105,000 50,800 6,700 2,200 Nov. 1926 Barrels 561,800 114,900 59,600 7,700 5,3 00 947,400 749,300 Tota..____________ 935,100 *Estimated American Petroleum Institute The summary of field operations showed that during the first eleven months of 1927 the number of wells completed was r ,780 fewer than in the same period in 1926, although daily new production was 999 1 228 barrels greater than in the same period in 1926. Indications of a general movement to reduce production in this district are seen in the reports from the five states. These reports show the number of wells drilling on December I was 1,030, or 41.2 percent less than on the corresponding day in 1926. The November field summary_follows: Wells Bbls. Daily Dry Gas Rigs-Wells Completed New Prod'n Wells Wella Drillin • 376 98,896 121 42 899 Oklahom-----137 12,991 45 16 127 Kansas·-·············-·..··················· Wyoming.. _ __ _ 16] 3,040 6 0 168 Colorado.......... _ _ _ __ 15 I 731 7 2 89 New Mexico_ __ __ _ II l 138 9 86 November 1927.......................... October 1927.............................. November 1926_ _ __ _ II Months 1927......- - II Months _1926_ _ _ __ 555 543 642 6,052 7,831 II5,796 189 61 178,661 170 58 184,687 216 47 2,150,308 2,o62 563 1,151,080 1,505 561 Reports on refinery operations in Oklahoma and Kansas showed fewer plants were operating on December 1, but daily runs of crude oil to refinery stills were larger than a year earlier. The reports on the refinery operations in the states follow: Plants Operating Petroleum The output of crude oil from wells in the five producing states in this district declined in November to a daily average of 935 1 100 barrels. This was the smallest daily average reported for these states iince last April, although it exceeded the daily average for November 1926 by 185,800· barrels. Gross pr0duction during_the thirty days of November was 1,314,000 bar- Nov. 1926 Barrels 16,855,000 3,445,000 1,787,000 230,000 160,000 December 1, 1927............._ _ _ __ _ _ _ _ November 1, 1927............................................................ .. December 1, 1926·-······· - - - - - -- 57 58 62 Daily Runs 265,6o5 173,015 150,480 Lead;and Zinc Shipments of zinc and lead ores in the Tristate District during the four weeks ending December 3 were considerably smaller 8 THE MONTHLY REVIEW than in the preceding four weeks ending November 5. Compared with the corresponding four weeks in 1926 shipments of zinc ore showed a decrease of 34.9 percent and of lead ore a decrease of 28.2 percent. Zinc ore at the close of November sold at an average of $37 per ton, an increase of $2 per ton during the month but $9 per ton below the price paid a year ago. Lead ore prices, after remaining steady at $80 per ton for twelve weeks, rose to $85 for the week ending December 3, and at that time were $15 per ton below the price paid producers one year earlier. The record of shipments of ores and their values: ZINC ORE Tons Oklahoma .................................... 27,660 Kansas ......................................... . 15,127 Missouri ................... _ _ __ 2,141 4 weeks ending Dec. 3, 1927.__ . 4 weeks ending Nov. 5, 1927_. 4 weeks ending Dec. 4, 1926·-····· 49 weeks ending Dec. 3, 1927...... 49 weeks ending Dec. 4, 1926·-··· 44,928 65,214 68,965 644,607 790,687 Value $ 988,040 538,775 76,325 $ 1,603,140 2,463,096 3, 24 1,355 $26,744,276 38,839,785 LEAD ORE Tons 4,76o 2,261 139 7,160 7,243 9,976 9 2,577 123·,546 $ Value 380,800 180,880 II,120 572,800 579,440 997,6oo $ 8,099,867 13,127,004 Bituminous Coal The output of soft coaf at the mines in this district during November was the smallest for any month since August. This was due in part to the fewer working days in the month and in part to the strike in Colorado which resulted in marked curtailment of mining activities. The production figures for the month are here shown for six states: During the first eleven months of 1927 the m_ines in these six states produced 25,113,000 tons of soft coal, which was 1,561,000 tons or 5.9 percent less than the production during the same period in 1926. Colorado............ Kansas.... Missour· New Mexico Oklahoma...·--··Wyoming... *Nov. 1927 Tons 478,000 285,000 276,000 296,000 301,000 807,000 Oct. 1927 Tons 918,000 306,000 297,000 280,000 324,000 802,000 NoY. 1926 2,443,000 2,927,000 3,374,000 Total.. ............ Tons 1,187,000 5u,ooo 349,000 279,000 3o6,ooo 742,000 Business Conditions in the· United States Industrial activity and freight car loadings declined further in November, while retail trade showed more than the usual seasonal increase. The general level of wholesale commodity prices after advancing for four months remained practically unchanged in Octo her and N ovem her. Production Output of manufacturers and minerals was reduced in November and the combined index of production, after adjustments for customary seasonal variations, fell below the 1923-1925 average for the first time since 1924. The largest declin e was in the output of automobiles owing largely to preparation for production of new models. Iron and steel production has also declined further anrl in November was the lowest since 1924. In December, however, inquiries for iron and steel increased. Textile mill activi ry was slightly curtailed in November but continued at a higher 1 evel than in previous years. There were decreases in the prod •1ction of coc1l, building materials, and leather and shoes. Building contracts awarded showed seasonal decline~ in November anl the first two weeks of December and were.._slightly smaller than in the corresponding period of last year. Total value of about fifty crops in 1927 is estimated by the department cf agriculture at 8,430,000,000, an increase of $635,000,000 over I y26. The greatest increases in value were shown for cotton, corn, barley, and oats, while the largest decrease frr any individual crop was shown for potatoes. The physical quantity of production of the seventeen principal crops was about 2 per::ent less than last year but 3 percent above the average of the last ten years. Trade Reta il uade increased slightly more than is usual in Novembei. Compared with a year ago, retail trade of department stores, mail order houses, and chain stores was larger, while wholesale trade continued in slightly sma1ler volume in nearly all reporting lines. Freight car loadings declined during November and in the early part of December were smaller than in the corresponding period for the past four years. There were large decreases in loadings of all classes of commodities. Prices The general level of wholesale commodity prices, as measured by the index of the Bureau of Labor statistics, after a continuous advance since early in the summer, remained at practically the same level in November as in October. Changes were relatively small in all groups, increases occuring in foods, and hides and leather, and decreases in farm products, textiles, fuels, and building materials. In the first two weeks of December prices of wheat, cattle, hogs, cotton, pig iron, and softwood lumber declined while those of silk, woolen goods, hides, and sole leather advanced. Bank Credit Between the middle of November and the middle of Decem her total loans and investments of Member Banks in leading cities showed a considerable increase, reflecting continued growth in the volume of loans on securities and in the banks' investment holdings. In the same period loans chiefly for commercial purposes, which reached a seasonal peak in October, showed a further slight decline. At Federal Reserve Banks the seasonal increase in currency requirements and the continued demand for gold for export during the four weeks ending December 21 were reflected in a growth in Member Bank borrowing. At the end of this period the total volume of Reserve Bank Credit in use was larger than on any other dat~ in the past six years. Somewhat firmer conditions in the money market in December were"reflected in increased' rates on call money. Rates on prime commercial''paper~and bankers acceptances remained unchanged during the month.
@FedFRASER