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THE MONTHLY REVIEW Of Agricu,tural, Industrial, Trade and Fin~nci~I 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. 14 KANSAS CITY, Mo., B USINESS in the Tenth District displayed more activity in ovember than is usual for the short eleventh month of the year, with time out for the observance of holidays and curtailment of operations in lines influenced by cold weather. The daily volume of transactions during the month, as reflected by the statistical reports, was at a higher level than in either the preceding month or the corresponding month a year ago. Conditions were reported as more uniformly good over the seven states whose areas or parts form this District than at the close of any recent year. No. JANUARY 1, 192g I Summary of Business in the Tenth District The figures contained in the summary which follows show percentages of increase (or decrease) for November 1928 as compared with October 1928 and November 1927; also for eleven months of 1928 a:, compared with eleven months of 1927. Allowance should be made for three holidays in November with only twenty-three full business days, while there were no holidays and twenty-seven business days in October, and two holidays and twenty-four business days in November 1927. Nov. 1928 Nov. 1928 II Mos. 1928 compared to compared to compared to General Business and Banking Oct. 1928 Nov. 1927 II Mos. 1927 Bank debits, 30 cities•-·-·-····-·-··- -7-5 4.9 6.5 22.2 -12.4 Business failures, number_···········-·- 6.6 -18.8 Amount of liabilities.....·-············32.9 -41.7 Trade 1.6 Wholesalers' sales, 5 lines.·-·············· - 8.5 0.5 Retail sales, department stores·---··· - 0.5 o.8 Lumber sales, retail yards·--············· -17.8 1.2 Grain Receipts, 5 Markets WheaL-···········------- -30.0 14.4 !lI.9 -10.8 Corn .....................· - · · · - - - - 30.7 8o.3 1.8 -9.7 Oats ..............·-····································· - 7•5 Livestock Receipts, 6 Markets Cattl..__ _ _ _ _ _ _ __ -35.o - 5.1 Calves _ _ _ _ _ _ _....___ -34.7 -3.4 Hogs _ _ _ _ _ __ In the production of commodities, seasonal declines in some 1.3 26.3 Sheep ........ _ _ _ _ _ _ __ of the important lines were more than offset by gains in other -58.6 16.4 Horses and Mui.....__ _ _ _ __ 7.2 -0.3 lines. The ovember slaughter of cattle and calves and the Industrial Output Flour. ____________ output of crude oil was smaller than in ovember of the preced-10.7 12.I 1.8 ing year, while the slaughter of hogs and sheep, and the pra- f Crude Qi.___ _ _ _ __ - 8.4 -9.4 - 9.1 , Solf CoaL._________ 0.03 duction of flour, soft coal. cement, and zinc and lead ores was 4-8 -6.4 •_• C e m e n ~ - - - - - - - - - -19.2 6.o II.8 larger than a year ago. :: Zinc Ore (shipments)*_____ 20.9 1 7•4 -l4.9 The value of building contracts awarded in the District durEven 23.8 Lead Ore (shipments)*········-············ -18.6 Packing, 6 Centers ing ovember was smaller than in the corresponding month a Meat Catt!_.,__ _ _ _ _ _ _ __ -19.6 - 1 5.7 year ago, although the value of permits issued in leading cities Calves.......................- ................... -z5.7 -16.5 Hogs ..,_ _ _ _ _ _ _ _ __ showed an increase. 20.2 23.8 4-5 Sheep.·-··••·- - - - - - - - -4o.5 6.7 14.7 The final crop estimate. issued late in December, reflected few Building and Construction important changes in estimated yields in the Tenth District Contracts awarded, value.................. -II.4 -15.8 15.6 from those reported in November. Indicated yields of winter . Permits issued, 19 cities.................... -37.0 -12.5 5.1 and spring wheat, oats, barley. potatoes, broom corn, and cotton Value of permits---··········· ~9.5 1.8 12.6 were larger than the 1927 crops, and estimates of corn, hay, *Bank debits are for 5 weeks and 49 weeks, and ore shipments are for 4 weeka and 48 weeks, of 1928 and 1927. Retail trade, having the right of way for the season, continued heavy through ovember and about on the level of a year ago. At the opening of December, with holiday trade at its height, the volume was at the peak of 1928. Distribution of goods by wholesalers showed less than the usual seasonal recession which follows the peak of fall trade, and wholesalers were doing a very large business in fill-in orders. Automobile sales were good for the late season, and dealers in accessories reported a very large volume of business. Orders booked to the end of November for implements and farm machinery for 1929 delivery were reported about 25 percent above those booked during the same period of a year ago. grain sorghum and sugar beets were smaller. The livestock situation exhibited but very slight change. The heavy fall runs of cattle and sheep from the ranges and pastures came to an end in October, and ovember marketings were down to ordinary winter schedules. On the other hand there was an increase in the marketward movement of hogs during the opening month of the winter packing season. Bank Debits Twenty-nine cities of the Tenth District reported payments by check, or debits by banks to accounts of their customers, (excluding charges to banks), amounted to $1,721,755,000 in five weeks and $16,641,830,000 in forty-nine weeks, both periods This Copy Released For Publication In Morning Newspapers December 28. '.2 THE MONTHLY REVIEW ending December 5, 192.8. The foregoing figures, compared with those for the corresponding periods in 192.7, show increases of S80,334,ooo or 4.9 percent for the five weeks, and $1,02.4,080000 or 6.6 percent for the forty-nine weeks. The reports covering the five weeks ending December 5 showed amounts debited in twenty-one cities were larger than in the corresponding five weeks of 192.7, while eight cities reported decreases for this period. The figures follow: FIVE WEEKS ENDING Dec. 5, 1928 Albuquerque, N. M ........................ $ 17,378,000 Atchison, Kans.. .............................. 6,753,000 Bartlesville, Okla .... _ _ _ _ _ 22,287,000 Casper, Wyo ................ _ _ _ _ 10,673,000 Cheyenne, Wyo .......... _ _ _ _ 8,630,000 Colorado Springs, Colo.................. 21,185,000 Denver, Colo ............................~..... 219,721 ,ooo Enid, Okla______ 17,734,000 Fremont, Nebr .............. _ _ _ _ 4,546,000 Grand Junction, Colo.................... 4,941,000 Guthrie, Okla ........... _ _ _ _ 3,990,000 Hutchinson, Kans.......................... 19,948,000 J ndependence, Kans........................ 16, I 52,000 Joplin, Mo........................................ 16,945,000 Kansas City, Kans.__ _ __ 23,342,000 Kansas City, Mo............................ 492,964,000 Lawrence, Kans ............................ _ 6,304,000 Lincoln, Nebr.................................. 38,782,000 Muskogee, Okla.............................. 16,198,000 Oklahoma City, Oki_____ 135,456,000 Okmulgee, Okla .......... _ _ _ _ 9,381 ,000 Omaha, Nebr ............ _ _ _ _ 235,238 ,000 Parsons, Kans.............. - - - 3,678,000 Pittsburg, Kans.......... .................... 6,988,000 Pueblo, Colo ...... _ _ _ _ _ 25,552,000 Salina, Kans .................. _ _ _ 14,957,000 St. Joseph, Mo................................ 66,288,000 Topeka, Kans.. ................................ 21,917,000 Tul~a, Okla ........... _ _ _ _ 170,639,000 Wichita, Kans.................................. 78,145,000 Dec. 7, 1927 $ 17,407,000 7,385,ooo 21,258,000 10,521,000 8,100,000 19,766,000 211,431,000 15,074,000 4,508,000 4,521,000 Percent Change - 0.2 - 8.6 4.8 1.4 6.5 7.2 3-9 17.6 o.8 9.3 4,551,000 -12.3 17,896,000 13,738,000 16,404,000 22 ,435,000 458,796,000 6,106,000 36.676,000 14,271,000 134,794,000 11.5 9,455,000 22 5,367,000 4,060,000 7,705,000 45,739,000 66,294,000 21,363,000 142,267,000 73,533,000 ported December 5 showing a decrease of I 1 .6 percent from the corresponding date in 192.7. Investments of the reporting banks continued around the high level of record with the total at the first report date in December standing 12..8 percent above that reported one year earlier. Investments in United States securities increased by 17.4 percent during the fifty-two weeks, while investments in other bonds, stocks and securities increased 8. 5 percent during the same period. Net demand deposits showed but slight change in four weeks and were a fraction of one percent larger than a year ago. Time deposits were slightly below the highest level of record, attained on October 31, but the December 5 total was 11.7 percent higher than a year ago. Principal resource and liability items of the sixty-four reporting member banks are here presented as of three dates for purposes of comparison: 17.6 3.3 4.0 7.4 3.2 5.7 1 3·5 0.5 - o.8 4.4 - 9.4 9.3 -44.1 - 0,01 2.6 1 9·9 6.3 Thirty cities 5 weeks ...................... $ 1,736,712,000 $ 1,641,421,000 • 4.9 Twenty-nine cities 49 weeks............ 16,641,832,000 15,617,752,000 6.6 •Percent of increase computed on returns of twenty-nine cities reporting for both years. Banking and Credit Demand for bank credit in this Federal Reserve District, reflecting expansion in industry and trade, continued heavy through November and the forepart of December, with funds ample to meet all requirements and no apparent change in discount or interest rates. Net demand deposits showed but slight changes in recent weeks but were higher than a year ago. Time deposits were ·at a new high record. Savings deposits showed a substantial increase both for the month and twelve months. MEMBER BANK OPERATIONS: Outstanding loans of 64 reporting member banks in cities, indicative of the general tendency in this District, fluctuated narrowly around the year's high level. The aggregate amount reported on December 5 was one-tenth of one percent below that reported on November 7, but was 3.7 percent greater than on December 7, 192.7. Commercial loans, representing approximately three-fourths of the total loans of these reporting banks, showed a small increase during the four-week period, but the amount reported on December 5 was 10.3 percent higher than on the corresponding report date a year ago. On the other hand, loans secured by stocks and bonds other than United States securities showed further declines during the period under review, with the amount re- Loans and investment-total... ....... Loans and discounts-total.. .......... Secured by stocks & bonds .......... All other loans and discounts...... Investments-total.. ....................- .. U. S. Government securities...... _ Other bonds, stocks and securities .......... Reserve with F. R. Bank........ ·-····· Net demand deposits Time deposits .................................... Government deposits , Dec. 5, 1928 Nov. 7, 1928 Dec. 7, 1927 $681,501,000 $682,188,000 $638,247,000 438,812,000 439,298,000 423,016,000 122,628,000 108,364,000 109,904,000 327,394,000 326,098,000 296,631,000 242,689,000 242,890,000 215,231 ,ooo 120,181,000 121,092,000 102,344,000 1'22,508,000 121,798,000 56,838,000 499,3 25,000 180,546,000 2,084,000 II'.2.,887,000 55,481,000 496,896,000 I 60,809,000 90,000 11 56,130,000 498,031,000 179,57 1,000 422,000 RESERVE BANK OPERATIONS: Bills rediscounted for member banks by the Federal Reserve Bank of Kansas City and branches at Omaha, Denver and Oklahoma City were on N0vember 2.8 at the highest figure recorded since January 9, 192.4. There was a slight decline during the week ending December 5, but the statement of that date showed an increase of $28,979,911 over the amount of rediscounted bills held on December 7, 192.7. Acceptances held by this Bank declined sharply at the end of November and the amount shown by the statement of December 5 was smaller than on the corresponding date in 192.7. Holdings of United States securities at the first week in December were at the lowest point since February 192.4. The amounts reported in the statement of December 5, as compared with those four weeks and_fifty-two weeks earlier: Dec. 5, 1928 Nov. 7, 1928 Dec. 7, 1927 Gold reserve.,___ _ _ _ _ _ _ $ 94,057,716 $ 81,678,654 $ 93,6oo,,8I 5 Reserves other than gold................ 5,471,041 5,629,521 5,674,588 87,308,175 Total reserves ...- - - - - - - 99,528,757 99, 275,4°3 Bills discounteu.------- 44,045,826 41,190,786 J 15,065,915 26,4o7,779 8,309,076 Bills purchased .... - - - - - 7,634,407 U. S. securities........ _ _ _ _ _ 9,732,300 I'l,482,300 38,303,300 Total bills and securities___ 61,412,533 80,080,865 61,678,291 Total resources ............ _ _ _ _ 210,556,414 2u,954,187 209,783,956 F. R. Notes in circulation·-···········- 66,699,880 64,197,565 66,979,425 Total deposits.. _ _ _ _ _ _ 92,320,343 94,518,217 92.,447,490 Savings in Banks Deposits to savings accounts in 54 banks in leading cities of this District increased by 0.4 percent between November 1 and December 1, and on the latter date the amount reported stood 6.4 percent above that reported one year earlier. Due to customary withdrawal~ for the holiday season there was a decline during the month of 0.5 percent in the number of savings accounts, although the total on December 1, 192.8 was 5.5 percent larger tha_n on December 1, 192.7. The reports, as show:n .in the table are not intended to represent all savings deposits and ~ J 3 THE MONTHLY REVIEW RETAIL TRADE AT 35 DEPARTMENT STORES IN (RETAIL) STOCU SALES Store1 Nov. 1928 11 Months 1928 November 30, 1928 Report- compared to compared to compared to ing Nov. 1927 11 Months 1927 Oct. 31, 1928 Nov. 30, 1927 Kansas City. __. 4 o.8 -4.6 -1.9 0.7 Denver.............. -o.6 -10.8 -4.0 -2.3 5 Oklahoma City 3 1.6 16.6 5.1 5.8 Omaha .............. 4 -1.0 o.6 2.8 o.6 2.3 7.0 Lincoln·--·-····- 2 Topeka. __ ......... 3 0,1 -0.7 1.7 -'1•5 Tulsa............ - .. 3 12.8 9.6 -0.5 3.5 Other Cities...... II -3.0 0.7 -4.5 4.5 r THE TENTH FEDERAL RESERVE DISTRICT ACCOUNTS RECEIVABL!t STOClt TURNOVER November II Months November 30, 1928 compared to 1928 1927 1928 1927 Oct. 31, 1928 Nov. 30, 1927 2·55 2.49 1.8 .25 7.8 .25 -8.2 .18 2.01 1.98 .19 1.9 2.8 .28 14.2 .30 -0.2 8.5 15. 7 -1 ..1 2.29 2.20 .19 ,22 .22 .21 2.3 1.78 2.13 -4.9 22.0 3.28 3.36 11.5 .33 .33 0.1 ,I 5 1.32 1.31 1.9 .17 COLLECTIONS . November 1928 compared to Oct. 1928 Nov. 192; -0.9 -2.4 -0.2 -3.8 4.3 10.5 18.3 6.4 12.4 I 5.1 23.0 38.4 19.0 I 1.9 6.o 7.3 Total................ 35 -1.4 o.8 -0.01 -1.6 . .23 .23 2.31 2.2'; 3.3 1.4 NOTE: Percentage of collerctions in November on accounts October 31, all stores reporting, 4_1.7. Collections same month last year 42.6 accounts held by all of the banks in either of the cities. They are merely "samples" collected from a small number of representative institutions in each of these cities for the purpose of picturing the monthly trend of savings in banks. The reports: DEPOSITS Banks Dec. 1 1 1928 Nov. 1, 1928 Dec. 1, 1927 Denver, Colo .. _ _ _ _ _ _ 7 f, 54,723,691 f, 54,855,157 f, 52,447,380 Kansas City, Kans... 4 3,336,247 3,312,851 2,911,667 Kansas City, Mo........................ 9 18,745,497 18,703,698 17,304,021 Lincoln, Nebr.. _ 3 2,976,281 2,900,990 3,093,714 Oklahoma City, Oki 6 10,263,691 10,102,079 8,206,059 Omaha, Nebr.......... _ 5 9,523,429 9,494,369 8,405,244 St. Joseph, Mo.·-···· 5 7,057,125 7,004,909 6,711,687 Tulsa, Okla...... 5 14,735,756 14,568,731 15,151,895 Wichita, Kan 8 6,735,916 6,693,020 6,114,353 Other Cities 2 298,128 290,789 314,275 Total............... _ _ _ __ 54 f,128,395,761 f,127,926,593 f,120,66o,295 ACCOUNTS Banks Dec. 1, 1928 Nov. 1, 1928 Dec. I, 1927 Denver, Colo. _ _ __ 126,345 120,217 125,379 7 Kansas City, Kan._,__ _ __ 10,540 10,483 9,527 4 Kansas City, Mo........................ 9 93,688 89,867 92 ,545 Lincoln, Nebr...... _ _ _ __ 18,814 15,700 I8,359 3 Oklahoma City, Oki _ _ __ 6 31,141 29,256 30,533 Omaha, Nebr.. ________ 39,36a 39,245 37,595 5 St. Joseph, Mo.. _ _ _ _ __ 18,216 17,377 18,109 5 Tulsa, Okla ...... _ _ _ __ 30,8 I I 26,620 30,965 5 Wichita, Kans ... _ _ _ __ 18,605 18,516 17,386 7 Other Cities...... _ _ __ 1,620 2 1,526 1,588 Total.. .....·-····---- 53 386,122 Failures Business failures in the Tenth District m November were slightly more numerous and the amount of liabilities larger than in the month of October, although the record for the month showed fewer failures and a smaller amount of liabilities than in November 1927. Statistics of failures, compiled by R. G. Dun and Company by Federal Reserve Districts, follow: LIABILITIES 1928 1927 1927 185 $ 3,379,330 $ 5,589,818 9,818,465 8,367,871 35° 1,793,428 1,486,840 72 2,613,625 147 3,449,3 15 2,555,698 1 37 4,850,607 1,204,572 1,549,585 99 210 5,624,820 3,182,548 5,740,158 3,476,584 9.1 68 710,546 1,153,335 2, 19:l,935 I,'179,7 17 113 68 818,200 756,043 21485,III 'l,667,857 3'12 NU114BER. Districts First, Bosto Second, New Y or Third, Philadelphia..................•. Fourth, Cleveland ................ - ..Fifth, Richmon Sixth, Atlant Seventh, Chicago_ .. _ Eighth, St. Louis...... Ninth, Minneapolis .................... TENTH, KANSAS CITY .......• Eleventh, Dallas·-··· Twelfth, San Francisco.·-········- U.S., November U. S., Eleven month 1928 207 418 97 134 104 69 2 35 125 55 99 33 '162 1,838 21,899 Tenth District Eleven months.. I,10'1 1,864 20,832 1,180 f, 40,6o1,435 448,785,464 13,954,429 1, 36,146,573 466,762,8'19 17,187,023- 6.4 4.2 Trade Conditions over the Tenth District were regarded as favorable for a record volume of retail trade in the closing period of 1928 , due to a higher purchasing power of the farm population, a better employment situation, and the release by banks to depositors of unusually large amounts of Christmas savings funds. However, the prevalence of a mild form of influenza, which seemed to be general over the country, was keeping many shoppers away from the stores in cities of this District. Thus, while sales in the early half of December were reported at the peak of the year, they were not up to expectations of merchants. RETAIL: Sales of reporting department stores in cities of the Tenth District were in larger daily volume in November than in October, although the dollar total for the month was a fraction of one percent smaller than in October, on account of the fewer trading days in November. The November record of the reporting department stores showed sales were smaller by 1.4 percent than in the corresponding month a year ago, seventeen stores reporting increases and eighteen stores reporting decreases. Accumulated sales for eleven months of 1928 were larger by o.8 percent than for the eleven months of 1927. November business with retail apparel stores showed a seasonal upturn and sales were slightly above those of a year ago. Sales of furniture at retail were larger for the month than either the preceding month or the same month in 1927. Chain stores handling foods reported their sales for the month were larger than those for a year ago. Stocks of goods at department stores at the end of November were slightly less than at the end of October and a year ago. WHOLESALE: Reports of wholesale firms located at distributing centers within the Tenth District showed the volume of sales, combined for six lines, was smaller in November by about 8.5 percent than in October, but were about the same as reported for November, 1927. The returns as reported in dollars showed the month's sales of all six lines were smaller than in the preceding month. Compared with the corresponding month a year ago, sales of groceries showed a small increase and sales of drygoods, hardware, furniture,drugs and millinery showed decreases. While the volume of distribution by reporting wholesale firms was smaller in November than in October, the decline was seasonal, being attributed to the fact that heavy purchases by retailers for the holiday season and for the winter trade were made in the earlier fall months. J?ue to the recent tendency of retailers to buy in sma. l lots and for immediate and near future requirements, wholesalers were doing a larger. volume of THE- MoNTHLV 1 Dry Good•····-··-·· Groceries.... Hardware_____ Furniture-··----·· Drugs Millinery_ R EVTEW WHOLESALE TRADE IN THE TENTH FEDERAL RESERVE DISTRICT OuTSTANDINGS COLLECTIONS SALES Reporting Nov. 1928 compared with Nov. 30, 1928 compared with Nov. 1928 compared with Stores Oct. 1928 Nov. 1927 Oct. 1928 Nov. 1927 Oct. 31, 1928 Nov. 30, 1927 -10.8 -6.6 - 1.8 -4.3 -3-9 3.7 7 6 -0.1 6.6 -4.2 4.2 - 8.6 11.7 -18.0 2.0 -4.0 -4.6 - 6.1 - 4.0 9 -12.2 -22.3 -4.4 - 4.6 - 7.8 - 4.5 5 o.8 -o.6 -10.4 -6.3 -3.4 -5-4 5 2 -46.8 -44.8 -29.1 -4 .5 42.9 -31.5 3 business in the way of fill-in orders than at this season in former years. Sales of implements and farm machinery in November ran about 25 percent above those reported a year ago. ; As shown by the summary of trade statistics, stocks of groceries, hardware, furniture and drugs were larger at the end of November than on the corresponding date a year ago, drygoods being the only line holding smaller stocks than a year ago. As compared with stocks at the close of October, merchandise inventories of drygoods, furniture and drugs showed decreases while groceries and hardware showed increases. / COLLECTIONS: Department stores reported their collections during November represented 43.7 percent of amounts outstanding as compared with 43.8 percent for October 1928 and 42.6 percent for November 1927. Wholesale firms reported collections were exceptionally good for the month. Retail lumber firms and distributors of implements reported collections were ex cell en t. Lumber Lumber movements in the United States in November,as seen by the reports of softwoods and hardwoods associations to the National Lumber Trade Barometer, exhibited moderate declines from October, which were partly seasonal and partly due to the fewer working days in November. r Production of softwoods lumber at 538 mills during November was 1,418,593 M feet. Shipments were 1,325,753 M feet or 93 percent of production, and orders were for 1,272,766 M feet or 90 percent of production. According to the reports both shipments and orders exceeded production during the year to the close of September, but both fell below production during October and November. Reports of 382 hardwood mills showed production of 232,229 M feet in November. Shipments were 250,793 M feet or 108 percent of production, and orders were for 252,133 feet or 108 percent of production. Rail shipments of lumber, with carloadings computed from weekly figures of forest products carloadings published by the American Railway Association, though not actual are believed to correctly show the general trend and are comparable. The figures arc here presented for November and the year to date: NUMBER OF CARS (COMPUTED) November Year to Date 1928 1927 1928 1927 East-_.________ 13,403 12,438 161,524 166,212 52,968 599,408 644,169 South.·-··------ 57,217 Wes.___ _ _ _ __ '59,704 56,018 698,285 680,502 111,424 1,459,217 1,490,883 Total U. S........ - - - - 130,324 M BOARD FEET (COMPUTED) November Year to Date 1928 1927 1928 1927 Eaa ......_ _ _ _ _ __ 249,738 230,738 3,oo6,983 3,099,368 South---·------ 1,104,345 1,017,197 n,617,203 12,470,520 West _ _ _ _ _ _ __ 1,249,366 1,165,398 14,619,701 14,283,486 STOCKS Nov. 30, 1928 compared with Oct. 31, 1928 Nov. 30, 1927 -11.4 -10.4 x.8 11.8 I.2 4.4 - 1.8 5.2 7.2 - 5.5 , RETAIL LUMBER TRADE: Sales of lumber in board feet at 172 retail yards over the Tenth District showed about the usual rate of decline from October to November, and were smaller than in November a year ago. Total sales, including items other than lumber, showed a similar trend. There was little change in stocks at these yards during the month, although November inventories showed stocks were smaller than a year earlier. Percentages of change for November from the previous month and the same month in 1927 follow: November 1928 compared to October 1928 November 1927 Sales of lumber, board fee..._______ -17.8 -13.5 Sales of all materials, dollars.......... -16.7 -18.2 Stocks of lumber, end of mont - o.8 -18.7 Outstandings, end of mont - 4.9 - 5.8 Collections during month...... - 6.o - 1.6 Building Reports covering November building operations reflected about the usual seasonal decline from October, both in permits issued in leading cities and contracts awarded in the District. Official figures for the month showed the value of permits in eighteen cities was $6,798,081, a decrease of 29.5 percent from October but an increase of 1.8 percent over November 1927. Six cities reported increases in building expenditures over the preceding November while twelve cities reported decreases. During the first eleven months of the year the value of permits amounted to $89,598,306, which was an increase of $10,293,816 or 12.6 percent over the accumulated total for eleven months of 1927. The reports follow: Albuquerque, N. M ........ Casper, Wyo.....·-············ Cheyenne, Wyo ............ _ Colorado Springs, Colo._. Denver, Colo..............·-··· Hutchinson, Kans·-··-Joplin, Mo _ _ _ __ Kansas City, Kans.......... Kansas City, Mo .....·-···· Lincoln, Nebr.................. Oklahoma City, Okla. __ . Omaha, Nebr·--············· Pueblo, Colo .................... Salina, Kans .........·-········ St. Joseph, Mo.·-··--····Topeka, Kans _ __ Tulsa, Okla ______ Wichita, Kan,.___ __ PERMITS 1928 1927 61 74 9 13 52 405 49 27 60 152 83 258 82 99 23 44 64 256 1 55 November.·-···················· 1,892 Eleven months ................ 27,241 5 28 63 511 32 29 68 241 94 212 69 102 JI 47 84 295 177 2,162 28,716 CosT 1927 173,644 30,400 70,840 66,792 1,103,500 75,335 77,773 75,205 1,081,725 290,730 1,516,285 244,980 101,362 33,580 74, 20 5 171,130 1,126,995 365,880 Percent Change 21.8 -38.0 ~9.8 - 56.9 -25.6 -22.6 -37.5 46.2 47.3 16.5 -18.3 8.8 -21.4 -48.1 -33.5 -64.1 - 9.7 n5.7 'f, 6,680,361 79,304,490 1.8 12.6 EsTIMATED 1928 f, 211,475 'f, 18,850 49,75° 28,780 821,450 58,335 48,600 109,960 1,593,000 338,573 1,238,6o7 266,570 79,661 17,415 49,360 6i,345 1,017,290 789,060 f, 6,798,081 89,598,306 The value of building contracts awarded in this District in November amounted to $13,908,007, as reported by the F. W. Dodge Corporation. This total compares _with $15,699,019 for October 1928 and $16,515,613 for November 1927. The accumulated total of contracts awarded in the District during eleven months of 1928 was $231,412,309 which compares with $200,090907, indicating an increase of $31,321,402 over the same period last year. ========================================-5 r 1 Kansas City_........................ Omaha.................., _ _ _ St. Joseph ........... _ _ _ _ Denver_____ Oklahoma City____ Wichita........, _ _ _ _ _ MOVEMENTS OF LIVE STOCK IN NOVEMBER, TENTH FEDERAL RESERVE DISTRICT RECEIPTS SToCJtEtu and FEEDER.S PACJtEllS Calves Hogs Sheep Cattle Hogs Hogs Sheep Cattle Calves ;;;~!~3 36,424 *266,060 85,013 73,850 10,374 9,493 26,284 65,718 14,980 107,605 8,795 145,067 169,972 43,373 4,286 2,810 40,850 53,186 4,154 41,332 6,8 46 15 4 ,365 87,818 8,432 1,791 3,324 10,496 29,840 5,203 89,719 II,492 36,145 143,469 6o,336 8,601 2,193 119,296 14,353 1,687 20,286 9,508 32,274 1,625 13,879 7,445 24,957 12,086 55,185 9,465 6,523 1,847 November 1928 .................. _ 431,182 October 1928 ...... 661,897 November 1927.................... 580,741 Eleven Months 1928 ............ 4,636,643 Eleven Months 1927............ 4,886,640 •Includes direct shipments to packers. 85,151 130,464 107,411 738,843 764,578 689,096 597,36 2 680,145 1,441,520 55 1 ,450 556,817 9,639,345 8,35 2,903 7,637,747 7, 174,9 29 185,991 2 5, 0 53 333,99 2 43,884 243,758 26,837 1,423,816 151,570 1,306,714 101,779 Livestock I Following the heavy fall market runs off the ranges and pastures which featured the October reports, there was a marked falling off in November in receipts of cattle at the six leading markets of the Tenth District. This decline amounted to 35 percent, and although seasonal in character it was more precipitant than usual and carried the November receipts of cattle to the lowest figure for that month on records covering the past ten years. Receipts of sheep at these markets during November were less than half the number received during October when flockmasters were rushing their sheep to market against the coming of winter, although the month's total was the largest for November since 1922. The advent of cooler weather and the opening of winter pork packing on November 1, were accompanied by increases in November receipts of hogs, both as compared with the preceding month and the corresponding month a year ago. A summary of the reports covering the first eleven months of 1928 shows receipts of cattle were 5.1 percent less and receipts of calves were 3.4 percent less than in the corresponding eleven months of 1927. Receipts of sheep were 16.4 percent greater, and of hogs 26.3 percent greater during the eleven months of 1928 than in the like period in the preceding year. Arrivals of horses and mules at the six markets in November were 10,615 head, as compared with 9,904 head in October and 14,93~ head in November 1927. The accumulated total receipts of horses and mules for eleven months of the year was 113,045 head, as compared with 113,417 head for the same period in 1927 1 a decrease of 372 head or 0.3 percent. FEEDING OPERATIONS: Due to the seasonal falling off in market supplies in November there was a marked decrease during the month in movements to the country of stock and feeding cattle and calves, as reported by four Tenth District markets, both as compared with October and the preceding November. The outgo of sheep and lambs for winter feeding was smaller in number than in the earlier month but was somewhat larger than a year earlier. The record of eleven months of 1928, as compared with that for eleven months of 1927, showed larger shipments of stock and feeding cattle, calves and hogs and a very small decrease in sheep and lambs. Meat Packing ,) During the opening month of the win te rpork packing season, which runs from November 1 to March 31, the slaughter of hogs at six principal centers in this District was larger than in either October 1928 or November 1927, as indicated by hogs purchased at public stock yards, including 17,810 11,678 19,616 185,085 158,792 316,926 798,617 300,064 2,550,401 2,559, 137 183,599 36,316 228,4-56 48,865 250,406 51,076 1,203,068 449, 239 2,613,614 538,343 PuR.cHASU Hogs *209,658 n3,983 u6,871 28,967 27,333 Sheep 61,099 1 09.675 66,442 24,301 813 51,535 3, 11 5 549,347 265,4-45 52 5,901 446,n7 248,857 457,074 7,464,428 4, 1 34,914 6,028,830 3,6o4,2J 1 hogs shipped direct to packers at Kansas City. The slaughter of hogs at the six centers during the first eleven months of 1928 was larger by 1,435,598 head or 23.8 percent, than in the corresponding period in 1927. The November slaughter of cattle and calves, reflecting the seasonal decline in market supplies, was smaller than in either the preceding month or in the same month in 1927. The record for the year to the end of November showed decreases of 410,556 cattle and 89,104 calves as compared with the number slaughtered during the like period in 1927. The number of sheep and lambs dressed at the packing plants in the six centers during November was smaller than in October but was larger than in November 1927. During the eleven months of the year 520,683 more sheep and lambs were killed at packing plants in this District than in the same period in 1927. Petroleum Production of crude oil in five states of this District was 26,451,000 barrels for the month of November, according to a compilation of the weekly figures reported by the American Petroleum Institute. This represents a decrease of 2,757,000 barrels from October 1928 and 2,423,000 barrels less than the gross production in November 1927. The daily average for N0vember was 881,700 barrels, 60,400 barrels less per day than in the preceding month and 80,800 barrels less than the daily rate in November 1927. The reports in detail: - Gross production in the five states during eleven months of 1928 was 286,566,000 barrels, a decrease of 28,891,000 barrels or 9.1 percent as compared with the total for eleven months of 1927. GROSS PRODUCTION *Nov. 1928 Oct. 1928 Barrels Barrels Oklahoma ................................................ 21,472,000 23,926,000 Kansas ........................ _ __ 1,898,000 3,003,000 1,961,000 1,776,000 Wyoming..............- - - - - 228,000 218,000 Colorado .... -··············----New Mexico ................ - ......................... . 87,000 90,000 Nov. 1927 Barrels 23,689,000 3,260,000 1,629,000 119,000 77,000 Total.--······· ...····················---- 26,451,000 29,208,000 28,874,000 DAILY AVERAGE *Nov. 1928 Barrels 71 5,700 Oklahoma·--·············-~--Kansas .......................... _ _ _ __ 96,600 59,200 Wyoming..- - - - · · · ························· Colorado,_ __ 7,300 2,900 N cw Mexico ............. •············-················ Oct. 1928 Barrels 771,800 96,800 63,200 7,400 2,900 Nov. 1917 Barrels 789,6oo 108,700 54,300 7,300 2,6oo Tota,.,______ _____ 881,700 *Estimated, American Petroleum Institute. 6 THE MONTHLY The November summary of field operations showed declines in the number of new wells completed and in the number of barrels daily new production both as compared with October 1928 and November 1927. While there was but a very slight change during the month in new development work, the number of wells drilling or making ready for drilling was greater on December 1 than one year earlier. The November field summary: Barrels Daily Wells Dry Gas Rigs-Wells Completed New Production Wells Wells Drilling 281 68,049 87 27 Oklahoma.- -··················· 99 1 288 Kansas.. 8 48 5, 1 75 99 Wyoming 178 3,869 17 5 0 89 902 Colorado.. ·--··- ···-···--·· 3 9 200 0 4 New Mexico.·---········97 5 November 1928·---·-··-October 1928 Novem her 1927- -•·-······ II Months 1928 .. ·--···--n Months 1927----··- 78, 195 152,301 II 5,796 1,074,543 2,1 50,308 411 511 555 4,890 6,052 147 167 189 1,735 2,062 36 55 61 594 1,643 1,635 1,469 563 Refinery operations continued steady and more active than at this time in 1927. The reports for Oklahoma and Kansas follow: Plants Daily runs crude Operating oil to stills Number Barrels 62 301,550 December 1, 1928........- - -- -······················· 62 November 1, 1928 ...................................................... 3o9,goo December 1, 1927_ _ ______ _ 265,6o5 57 Cement R EVlEW Bituminous Coal Productive activity at the soft coal mines in the Tenth District increased seasonally during November. Although working time was curtailed by the general election and the Armistice and Thanksgivin~ holidays, the output for the month was only 1,000 tons less than that for the full month of October; while it was 132,000 tons or 4.8 percent greater than that for November 1927, with its two holidays. Tonnages produced in the six states during November, with comparisons, follow: Colorado.____········ Kansas Missour' New Mexico·-·····-·· Oklahoma.._........ Wyoming...............·-···-········ *Nov. 1928 Tons 1,059,000 213,000 304,000 254,000 326,000 702,000 Oct. 1928 Tons 980,000 240,000 36o,ooo 230,000 337,000 7I'l,OOO Nov. 1927 Tons 2,858,000 2,859,000 2,726,ocp Total_···-········ *Estimated 563,000 303,000 386,000 289,000 405,000 780,000 The production of soft coal in this District during the eleven months of the calendar year was approximately 24,851,000 tons as reported by the Bureau of Mines, Department of Commerce. Compared with 26,542,000 tons for the like period in 1927, there was a decrease of 1,691,000 tons or 6.4 percent. Total production of bituminous coal in the United States during the calendar year to November 24, (approximately 278 working days), amounted to 440,952,000 net tons. For the corresponding period in 1927 the production was 471,320,000 net tons. The production of Portland cement at mills in the Tenth District in November was 19.3 percent less than in October but 6 percent greater than in November 1927,according to the monthly survey by the Bureau of Mines, United States Department of Zinc and Lead Commerce. Shipments declined sharply during the month, Increased activity at the zinc and lead mines in the Tristate due to unfavorable weather and the closing down of many conDistrict came in November. Shipments of zinc were heavier struction projects for the winter, but were only slightly smaller during the four weeks ending December I than in either the prethan in the previous ovember. Stocks of cement at the close ceding four weeks or the corresponding four weeks in 1927. Shipof November were larger than a month earlier but a few thous. ments of lead ore, although exhibiting some decrease from the and barrels less than a year earlier. The trend of November preceding period, were larger than in the like period in I 927. production, shipments and stocks of all reporting mills in the Tonnages shipped and their values are here shown for four weeks United States was about the same as that reported for this Disand forty-eight weeks of 1928 with figures for 1927 for compartrict. The figures follow: ison: Tenth District Production ............................................ Shipments.......... - - - - - Stocks, month-end .. _ __ _ _ United States Production .........·-······························ Shipments...... _____ _ _ _ _ Stocks, month-end.·-·························· Nov. 1928 Barrels 1,122,000 871,000 1,548,000 Oct. 1928 Barrels 1,389,000 1,643,000 l/296,000 Nov. 1927 Barrels 15,068,000 n,951,000 17,696,000 17,533,000 19,836,000 14,579,000 14,449,000 1,059,000 1,005,000 1,580,000 n,619,000 16,022,000 The production of Portland cement in this District during eleven months of 1928 was 12,752,000 barrels as compared with n,404,000 barrels in the like period in 1927. Shipments for the eleven months totaled 13,220,000 barrds as against 12,103000 barrels. United States production for eleven months was 163,637,000 barrels compared with 159,909,000 barrles in the first eleven months of 1927. Shipments were 168,071,000 barrels _compared_ with 164,722,000 barrels. ZINC ORE LEAD ORE Tons Oklahoma ........ - - - ~············ 32,153 18,065 Kansas ...._ ----·················· Missouri _ _ _ _ __ z,548 Value $ 1,286,120 722,6oo 101,920 Tons 6,146 2,569 146 4 Wks. ending Dec. 1, 1928.___ 4 Wks. ending Nov. 3, 1928...... 4 Wks. ending Dec. 3, 1927.__ 48 Wks. ending Dec. 1, 1928-__ 48 Wks Ending Dec. 3, 1927.___. $ 'l,IIo,640 8,861 10,887 7,16o 90,131 90,131 52,766 43,637 44,928 533,056 626,720 1,745,480 1,6o3,140 20,719,077 25,921,474 Value $ 506,906 213,256 12,128 $ 732,290 925,395 572,800 7,339,768 7,861,383 Zinc ore brought $40 per ton during twenty-nine consecutive weeks ending December 1, and during the last nine weeks of of this period this price was higher than in the corresponding nine weeks of last year. Lead ore sold at $80 to $82 per ton during the last four weeks as compared with $80 per ton during the same period in 1927. ._ 411 , i THE MoNTHt v R EVTEW 7 I r ~, I The Crops Final figures of the United States Department of Agriculture on crop production in the Tenth District in 192.8, announced late in December, showed no marked changes from the November estimates, save to add about 4,000,000 bushels to the corn crop. Estimates for twelve leading field crops in this District indicated yields of winter wheat, spring wheat, oats, barley, white potatoes, broom corn and cotton were larger than the 192.7 crops, while estimated yields of corn, tame hay, rye, grain sorghums and sugar beets were smaller. And the composite of yields of all crops of 192.8 was 9.2 percent above the ten year average. A notable feature of the December report was an increase in Nebraska of 17,813,000 bushels in the estimated production of corn, which brought the total for that state to 2.12.,701,000 bushels, or 78,745,000 bushels less than in 192.7. On the other hand, Kansas reported a decrease of 2.,400,000 bushels and Missouri a decrease of 11 ,832.,000 bushels from the November forecast. With these changes total corn production in the District is approximately 516,000,000 bushels against 612.,000,000 bushels in 1927. The final Government report for the season placed the United States cotton crop at 14,377,000 bales, which was 240,000 ba!es above the November estimate and 1,418,000 bales larger than in 1927. Oklahoma, which produces practically all cotton in this District, reported a crop of 1,180,000 bales against t ,037,000 bales in 192.7, showing an increase of 143,000 bales. Missouri with 146,000 bales and New Mex.co with 71,000 bales, indicated small declines in production from the totals reported one month earlier. With abundant rains falling on practically every section of this wide area since the middle of October, the soil was reported in better condition to enter the winter than for many years. Crops of wheat and rye were particularly benefited by the rains and snows. The wheat crop was making a fine showing. The Kansas State Board of Agriculture on Dceember 18 estimated that 12.,173,000 acres had been sown in winter wheat in the Fall of 192~, compared with a five-year average in II,413,000 acres. The 1928 acreage seeded was about I percent less than was seeded ~n the Fall of 1927. The condition of the crop on December 1 was 82 percent of normal, compared with 75 percent one year ago. The acreage seeded in winter wheat and the condition on December I is here shown for the other leading producing states ~in this District: Colorado, 1,307,000 and 82; Missouri 2,015,000 and 91; Nebraska 3,676,000 and 89: Oklahoma 4,508,000 and 73. Grain Movements Wheat moved to market during November in smaller volume and on a more even balance with trade requirements than in any preceding month since this year's crop of wheat was harvested . In consequence prices were firmer than earlier in the season when the market was depressed by heavy receipts. November arrivals or wheat at five reporting markets in this District, amounting to n,979,420 bushels, were the lightest monthly receipts since June, although they were heavier than in the eleventh month of all preceding years since 1922. Combined monthly returns show 164,819,12.0 bushels of this year's crop of wheat were received at the five markets between July 1 and November 30, inclusive, against II 5,090,550 bushels received during the like period in 192.7, these figures indicating an increase in wheat marketings for this year of 49,728,570 bushels or 43.2 percent. Market receipts of oats, barley and rye declined seasonally during November, although there were increases for the month in receipts of corn and kafir. November receipts of all classes of grain, except wheat and barley, were smaller than in the same month in 1927. The receipts in detail for November and totals for the calendar year, follows: Corn Wheat Bushels Bushels Hutchinson 30,000 2,417,850 Kansas City.. 5,168,020 2,139,000 Omaha.......... 2,204,800 1,104,6oo St. Joseph ...... 588,000 653,800 129,600 Wichita·--····· 1,534,95° Nov. '28 ........ 11,979,420 Oct. '28 .......... 17,121,420 Nov. '27 ........ 10,471,550 II Mos. '28._.203,665,320 II Mos. '27._.167,056,800 3,991,200 3,052,650 4,472,050 76,344,300 42,339,400 Oats Bushels 1,500 468,000 578,000 48,000 31,500 Rye Bushels 2,400 28,500 99,400 Barley Bushels 37,500 288,000 75,200 12,250 48,000 Kafir Bushels 200',200 448,800 --------- 1,127,000 130,300 46o,950 649,000 1,219,000 217,300 910.250 346,.700 1/248,500 208,200 343,450 850,200 12,395,500 1,563,100 5,656,600 6,247,500 12,181,500 1,829,300 2,583,800 4,861,700 Flour Production The November output of flour at reporting mills in this District fell 284,488 barrels or 10.7 percent below that of October, on account of the difference in the number of milling days, although as compared with the preceding November there was an increase of 2.56,524 barrels or 12.1 percent. The November production brought the total for eleven months of 192.8 to 23,748,2.2.0 barrels which was an increase of 42.6,007 barrels or 1.8 percent over the corresponding period last year. The follo..ying summary shows the number of barrels produced at the leading milling centers in this District, as compiled from reports to the Northwestern Miller: Atchison.................. _ _ _ _ __ Kansas City............ _ _ _ _ __ Omaha ...... ----·························· Salina.... _ _ _ _ _ __ St. Jnseph ................................................ Wichita·--················································· Outsid.c...._ _ _ _ _ _ __ Total--···································--- Nov. 1928 Barrels 125,913 673,426 107,429 164,824 129,830 163,135 1,003,182 Oct. 1928 Barrels 139,859 722,541 120,349 183,933 193,556 198,386 1,o93,6o3 Nov. 1927 Barrels 124,411 66o,053 102,965 168,401 109,335 153,363 792,687 2,652,227 2,111,215 Millers reported some improvement at the close of November in new sales of flour. There were also reports of better shipping directions on flour already on miller's books, which should result in better running time at the mills in the early half of December. Concerning export sales the Northwestern Miller said in its issue of December 5: About the only activity that can be reported in the export market is in Latin America, where a routine volume of sales enables export managers to justify their existance. Continental business is still slow, reports from at least one importer saying that largefl our stocks in Europe are hampering new buying. Local millers state that they certainly have not been responsible for any large stocks there may b~ on the_Continent. 8 THE MONTHLY REVIEW Production and Estimated Farm Value of Certain Crops For the Years 1928 and 1927 (Figures are Compiled from State Data issued by the U. S. Department of Agriculture, and are not figures for the Tenth District.) SEVEN STATES Production Eleven Crops Price Per Unit Est. Farm Value Dec. 1. In Thousands of Units Dec. 1, in Cents Price in Thous. of Dollars 1928 1928 1928 1927 1927 1927 Winter Wheat, bus .... 336, 139 282,388 246,289 323,87~ 96 II9 Spring Wheat, bus __ 1 5,099 86 IOI 12,804 12,865 12,941 482,8u Corn, bu 668,691 746,542 70 65 465,736 Oats, bus .. I 58,581 41 42 80,569 195,568 67,319 2 5, 197 Barley, bus................ 14,214 48,225 fl 25,277 56 Rye, bus.................... 5,810 6,541 78 5,113 78 4,534 Potatoes, bus............ 48,869 26,086 84 39,742 33,554 53 62 Grain Sorghum, bus_ 6o,890 33,210 34,421 53,6 17 57 Sugar Beets, tons ...... 33,202 4,241 • 7-3 1 • 7.83 28,514 3,832 174,071 Tame Hay, tons........ 16,042 170,253 18,799 • 10.61 • 9.26 Broom Corn, tons ...... 32 • 1o3. 2o •99.93 3,984 3, 199 39 *Unit price on sugar beets, tame hay, and broom corn is in terms of dollar, per ton. UNITED STATES Production Eleven Crops Price Per Unit Est. Farm Value Dec. 1 In Thousands of Units Dec. 1, in Cents Price in Thous. of Dollars 1928 1928 1928 1927 1927 1927 103.6 u6.7 645,326 578,964 55 2,747 599,557 103•4 210,897 254,896 231,015 246,527 91.3 2,132,991 1,997,759 2,839,959 2,763,o93 7 2-3 75· 1 1,449,53 1 1,182,594 531,762 4o.9 45.0 592,674 180,200 265,882 67.8 197,128 356,868 55-2 86.4 36,067 58,164 41,766 49,6o9 85.3 250,043 388,741 402,741 54.0 96.5 462,943 62.1 61.6 84,614 100,364 88,471 99, 17 2 7,040 59,455 7,753 • 7.18 • 7.67 5°,525 • 12.34. 11.35 106,001 1,148,283 1,202,953 93,03 1 4,212 •1o6.59 *109.12 4,850 46 39 As indicated by the Department's final estimate for 1928, the composite of yields in the seven states whose areas or parts form the Tenth District, was 109.2 percent of the ten-year average, as compared with 103.5 precent of the ten-year average for the United States. The composite condition of crops in the seven states, compared with the average for the ten preceding years: Colorado 97.6, Kansas 130.9, Missouri 104.9, Nebraska 103.3, New Mexico 95.3, Oklahoma 101.3, Wyoming 96.5. Business Conditions in the United States Industrial activity declined somewhat in November, but continued above the level of a year ago. Wholesale commodity prices declined further, reflecting principally a continued decrease in the prices of farm products. Security loans of Member Banks declined sharply after the first week of December, while other loans increased. PRODUCTION: Total output of manufacturers was somewhat lower in November, reflecting primarily a decrease in production of automobiles, and steel, larger than is usual at this season, but total output continued larger than a year ago. Pr0duction of pig iron and copper continued to increase in November and textile mills remained active. Meat packing and sugar refining declined seasonally during the month, and the production of building materials was smaller. Factory employment and payrolls were seasonally reduced but were larger than in 1927. Mineral production was in about the same volume as in October, according to the Federal Reserve Board's index which makes allowance for seasonal variations. Increases occurred in the production of copper, zinc, and tin, while both anthractite and bituminous coal decreased and the output of petroleum was somewhat smaller. The value of building contracts awarded in November and the early part of December receded sharply from the record figures of the two preceding months. The November total was slightly larger than in the corresponding month in 1927, and the volume of contracts for the first two weeks of December was smaller than a year ago. The December forecast of the Department of Agriculture increased the estimated 1928 production of cotton by 240,000 bales to a total of 14,373,000 bales, which is nearly II percent larger than a year ago. The total value of crops, based on December farm prices, is estimated at $8,456,052,000 as compared with $8,522,563,000 in 1927. TRADE: Department stores sales showed a seasonal increase in November when allowance is made for the number of business days, and approximated those of a year ago, while inventories continued smalkr than in 1927. Sales at wholesale declined seasonally, but -zere larger than in the same month of last year. Railroad freight shipments decreased in volume during November and the ean 1- oart of December, but continued larger than in 1927. The decrease from October was especially marked in loadings of miscellaneous freight. PRICES: Wholesale commodity prices decreased further in November and the first two weeks of December. The largest price delines during the six week period were in farm and food products and leather, while several groups of industrial products, notably iron and steel, nonferrous metal and cotton goods, were generally higher, wholesale prices of gasoline and automobile tires declined. Among the agricultural products, prices of raw silk, corn, livestock, and meats were lower during November, while raw cotton and wool, wheat and oats increased somewhat. During the first two weeks of December however, prices of all these products with the exception of raw silk, delcined. Building materials were generally higher in November, but declined somewhat in the miHle of December. BANK CREDIT: Loans and investments of Member Banks in leading cities increased $3 29 0:)(),000 during the four week perio::I. end ng D~cember 19. The advance dllrin 5 the first two weeks reflected chiefly a rapid increase in security loans, which include loans to brokers and dealers in securities. Subsequently, a sharp decline in loans on securities was more than offset by a rapid increase in all other loans and in holdings of investments. The increase in all other loans, which include loans for commercial purposes, was contrary to the usual movement at this season and carries the total to the highest figure in eight years seasonal growth in the demand for currency in November and December, together with increases in member bank reserve requirements, consequent upon an increase in their deposit have been reflected in larger borrowings by the member banks from the reserve banks. This recent growth, following upon demand caused by the loss of gold in earlier months, has carried the total volume of reserve bank credit to the highest level in seven years. The rates on call and time loans on security collateral increased during the last week in November and the first part of December, while rates for commercial paper were generally steady. Rates on certain maturities of bankers bills increased somewhat. 1 ,
@FedFRASER