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THE MONTHLY REVIEW OJ Agricultural, Industrial, Trade and Financial Conditions in the Tenth Federal Reserve District FEDERAL Vol. 20 RESERVE KANSAS CITY, BANK Mo., USTAINED improvement in retail distribution, steady to higher agricultural commodity prices, and recessions in production lines and grain and live stock marketings were disclosed by the November reports and mid-December surveys covering the Tenth Federal Reserve District. As reflected by the dollar sales of department stores in the principal cities, November retail trade was 1.9 per cent less than in October, whereas it is normally about 8 per cent less, and was 17.1 per cent greater than in November, 1933. Preliminary reports indicate Christmas trade as running well above a year ago, advance estimates for December over December, 1933, ranging from 15 to 20 per cent. Wholesalers' sales declined about as usual from October to November but the dollar volume for five representative lines combined exceeded that of November, 1933, by 5.9 per cent. Sales of lumber at retail and new paid-for life insurance were also smaller for the month, with lumber sales 15.3 per cent larger and life insurance sales 7.4 per cent smaller than a year ago. Increases over November, 1933, of 12.9 per cent in debits by banks to individual accounts and 18.8 per cent in Federal reserve bank clearings were also recorded. Savings deposits again increased. Business insolvencies were comparatively small both in number and the amount of liabilities involved. Building activity was retarded somewhat by weather conditions, and expenditures, particularly for residential construction, were minor. The production of flour, crude oil, and bituminous coal declined seasonally. Flour milling, although 8.3 per cent larger than a year ago, was 7 per cent below the tenyear average and the output of crude oil was, for the first time since restrictions became effective, below Federal allowables. Harvesting and fall seeding operations are virtually completed with farm work confined to the care of live stock. The acreage seeded to winter wheat in this District is estimated as 7.5 per cent larger than last season. Marketings of all classes of grain were extremely light with receipts of wheat less than 30 per cent of normal and arrivals~of corn showing a sharp reduction from the heavy movement of recent months. Contraction in forced liquidations and Government purchases of cattle and calves was reflected in substantial declines in supplies at the six primary markets of the District in November as compared to the four preceding months. Receipts were larger than a year ago but below the ten-year average. Feeding ratios being unfavorable, marketings of hogs were of a liquidating character. Offerings consisted of a high percentage oflight and unfinished kinds and were unusually large considering the substantial reductions in spring farrowings and numbers on farms the past year. Market receipts of sheep were, with three exceptions, the smallest for any month in fifteen years of record. Horses and mules were in liberal supply. S OF JANUARY 1, KANSAS 1935 CITY No. I BUSINESS IN THE TENTH FEDERAL RESERVE DISTRICT Percentages of Increase, or Decrease (-), for November 1934 over October 1934 and November 1933 and for the first ~!even months of 1934 over the like period in 1933. I I Months 1934 November 1934 compared to compared to Banking Oct. 1934 Nov. 193.3 I I Months 1933 Payments by check, 29 cities...·-············ 1.1 12.9 15-7 Federal Reserve Bank clearings.............. -10.4 18.8 38.7 Business failures, number........................ -37.0 -54. 7 -5 2 .3 Business failures, liabilities ................_.... 75.7 -35.0 ~-2 Loans, 52 member banks.---············-···· - 3.8 - 1.3 Investments, 52 member banks.............. 0.9 23.0 Net demand deposits, 52 member banks - 1.2 30.6 Time deposits, 52 member banks·--······· - 2.2 - 2.2 Savings deposits, 46 selected banks·--··· o.8 15.5 Savings accounts, 46 selected banks...... - 0.3 5.0 Distribution Wholesalers' sales, 5 lines combined.--··· - 6.5 5.9 Retailers' sales, 32 department stores._. - 1.9 17.1 1 5·3 Lumber sales, I 55 retail yards................ -10.8 Life insurance, writte:i._______ - 8.1 -7-4 Construction Building contracts awarded, value. ___ . -34.2 Residential contracts awarded, value.. _ ~8.7 Building permits in 17 cities, value-···· 6.o Production 0.4 8.3 Flour -································----- - 9.2 -4.5 3.1 Crnde petroleum._···-········· · · · - - - - - 6.3 Soft coal ..................................................... - 8.7 2.5 5.1 Zinc ore (shipped) Tri-State district...... 11.8 5o.3 14.7 102.6 -13.1 Lead ore (shipped) Tri-State district ... . 1.3 3o.5 Cement.-- · · · · · · · - - - - - · - - - 37.7 52 ·7 Grain receipts, 5 markets 5.6 Wheat·--·····----·························•·· -33.8 12.0 Corn_·············· - - - - ~8.2 - JI.I Oats·---·············································-······ -53. 5 Live stock receipts, 6 markets Cattle.................... _ _ _ _ _ __ 61.6 12.8 -35-1 11 4•3 20.9 C:llves.-··················· · · - - - - - - - -44.6 -18.'i - 1.4 Hogs ........ - - - - - - · · · · ················· 7-5 - 3.8 -,13-5 Sheep.............................. ·-·······················- -'74.2 Horses and mules .. _ _ _ _ _ __ 1.6 4o.9 Meat packing, 6 markets Cattle.......................................................... -17.6 34.5 53-4 150.2 79- 1 Calves·-···································---- -44.6 Hogs ........................ _ _ _ _ _ __ -22.9 - 9.9 7.7 -26.8 3.3 Sheep .......... -----···········-······•···· ~7.3 All grain and feed prices made substantial advances during the month. Only the better grades of cattle and hogs sold at steady to higher prices. Light receipts of sheep and lambs eventually forced values up. Eggs and butterfat were steady, chickens lower, and turkeys higher, with closing quotations for each well above a year ago. Farm purchasing power was unchanged for the month, the Department of Agriculture's index standing at 81 per cent of the 1909-14 average as compared to 69 per cent in November, 1933. This Copy Released For Publication In Morning Newspapers, December 31. THE MONTHLY REVIEW Financial MEMBER BANK OPERATIONS: The consolidated weekly condition statements of fifty-two reporting member banks in leading cities of the District disclose that between November 14 and December 12 loans and discounts of these banks declined 3.8 per cent, loans secured by stocks and bonds dropping 1.7 per cent, and "all other" loans off 4.6 per cent. Total loans were 1.3 per cent, those secured by stocks and bonds 0.4 per cent, and "all other" loans 1.6 per cent smaller on December 12, 1934, than on December 13, 1933. Investment holdings reached an all-time high of $378,053,000 on December 12. This figure was $3,520,000 above the total of November 14 and exceeded holdings as of December 13, 1933, by $70,666,000, or 23 per cent. Investments in United States Government securities were enlarged o.8 per cent in four weeks and 24.4 per cent in fifty-two weeks and purchases of other bonds, stocks, and securities were up 1.3 per cent for the month and 20.4 per cent for the year. Net demand deposits, although 1.2 per cent smaller on December 12 than four weeks earlier, were, with that exception, higher than on any weekly reporting date since November I'l, 1930, and were 30.6 per cent larger than on December 13, · 1933. Time deposits showed a decline of 2.2 per cent both as compared to November 14 this year and December 13 last year. The combined statements of the fifty-two member banks, as of the three dates of comparison, are shown herewith: Loans and investments-total.. Loans and discounts-total_ __ Secured by stocks and bonds All other loans and discounts lnvestments-tota _ _ __ U. S. securities ........................ Other bonds, stks., and sec ... _. Reserve with F. R. bank·-········· Net demand deposits.·-·····-····· Time deposits .... _ _ _ _ __ Government deposit..__ __ Dec. 12, 1934 Nov. 14, 1934 Dec. 13, 1933 $579,464,000 $583,936,000 $511,450,000 201,4u,ooo 209,403,000 204,o63,ooo 54,022,000 54,952,000 54,254,000 147,389,000 154,451,000 149,809,000 378,053,000 374,533,000 307,387,ooo 247,690,000 245,826,000 199,147,000 130,363,000 128,707,000 108,240,000 93,730,000 94,329,000 69,031,000 480,874,000 486,841,000 368,134,000 161,526,000 165,196,000 165,210,000 14,445,000 14,944,000 8,632,000 RESERVE BANK OPERATIONS: Changes in the principal resource and liability items, as shown by the weekly condition statements of the Federal Reserve Bank of Kansas City, and branches during the four weeks' period ended December 12, were slight. Loans to member banks were down '1,227,229 for the period, with holdings as of December I'l totaling but $85,615, the smallest amount of record. Industrial advances showed a small increase and now stand at $256,214. No additional purchases of Government securities were made and total holdings of bills anc.i securities were off 0.7 per cent. Member banks' reserve deposits declined $3,096,198 from the all-time peak of $164,1u,678 on November 14. Federal reserve note circulation was up 0.4 per cent. Since December 13, 1933, holdings of bills rediscounted for member banks have declined $2,021,878 and of bills purchased in the open market $5,355,688. These declines were more than offset by an increase of 10.2 per cent in holdings of United States Government securities and the new industrial advances, and total holdings of bills and securities are now 1.5 per cent above a year ago. Gains of n.2 per cent in Federal reserve note circulation and 42.5 per cent in member banks' reserve deposits were recorded for the fifty-two weeks' period. RESERVE BANK CLEARINGS: Transit forces of this bank and branches at Denver, Oklahoma City, and Omaha handled 8.8 per cent fewer items, representing a decrease of 10.4 per cent in the dollar amount, for collection i? November than in the previous month. November collections showed increases over the like month last year of 19.1 per cent in the number of items handled and 18.8 per cent in the dollar volume. The principal resource and liability items of this bank and branches as shown by the weekly condition statements of December 12, and November 14, 1934, and December 13, 1933: Dec. 12, 1934 Nov. 14, 1934 Dec. 13, 1933 Total reserves.. _ _ _ _ _ $195,995,703 $197,133,895 $147,902,055 Bills discounte...______ 85,615 312,844 2,107,493 Bills purchase,~---153,985 153,857 5,509,673 Industrial advances.. -................ 256,214 239,078 U. S. securities .. _........................ 91,844,250 91,844,250 83,341,200 Total bills and securities............ 92,340,064 92,991,443 90,958,366 Total resources.... -...................... 319,256,397 327,753,794 269,172,921 F. R. notes in circulation .. _...... u7,824,225 u7,326,375 105,965,685 F. R. bank notes in cir.-net.... ------9,633,400 Member banks' reserve deposits 161,015,480 164,1 u,678 u3,022-441 The discount rate of the Federal Reserve Bank of Kansas City, on all classes of paper and maturities, was reduced from 3 to 2½ per cent, effective December 21. BANK DEBITS: Twenty-nine cities of the District reported payments by check, or debits by banks to individual accounts, amounted to $1,048,191,000 in the five weeks and $9,850,027,000 in the forty-eight weeks' periods ended December 5, 1934. The fore-going totals represent increases over the corresponding five and forty-eight weeks of 1933 of 12.9 and 15.7 per cent, respectively. Debits during the five weeks ended December 5 were 1.1 per cent larger than in the preceding five weeks ended October 31. The figures follow: Albuquerque, N. M ...·-··············· Atchison, Kan Bartlesville, Okla.._..................... Casper, Wyo Cheyenne, Wyo-----········ Colorado Springs, Colo,. __......... Denver, Colo............................... Enid, Okla........·-···················-···· Fremont, Nebr Grand Junction, Colo ................. Guthrie, Oki Hutchinson, Kans... Independence, Kans ................... Joplin, Mo•.. __ Kansas City, Kans,_ .................. Kansas City, Mo·--·············-····· Lawrence, Kans ...•·········-···:.._.... Lincoln, Nebr Muskogee, Oki Oklahoma City, Okla..·-············ Okmulgee, Okla. Omaha, Nebr. Pittsburg, Kans ................._........ Pueblo, Colo Salina, Kans.._. St. Joseph, Mo.·-························· Topeka, Kans. Tulsa, Oki Wichita, Kans..... Total 29 cities, 5 weeks .......... Total 29 cities, 48 weeks .......... U. S. 267 cities, 5 weeks .......... FIVE WEED EKDED Dec. 6, 1933 Dec. 5, 1934 .,, 11,807,000 $ 9,216,000 2,903,000 3,243,000 21,290,000 26,755,000 6,112,000 5,197,000 6,468,000 8,071,000 12,878,000 14,427,000 144,086,000 124,439,ooo 8,417,000 7,975,000 2,145,000 2,257,000 1,844,000 2,411,000 1,6o2,ooo 1,549,000 9,212,000 10,740,000 4,438,000 4,367,000 8,109,000 7,077,000 10,070,000 11,126,000 259,362,000 327,470,000 3,244,000 3,3 1 5,000 23,756,000 26,153,000 9,882,000 8,546,000 75,010,000 77,67l,O<X) 2,641,000 2,650,000 117,365,000 135,087,000 3,414,000 3,494,000 36,766,000 21,921,000 6,630,000 7,506,000 25,857,000 27,309,000 12,538,000 15,772,000 87,161,000 95, 2 39,000 38,046,000 3 2,479,000 Per cent Change 28.1 11.7 --20.4 17.6 24.8 12.0 15.8 $ l ,048,I 91,000 J 928,324,000 9,850,027,000 32,336, 179,ooo 8,510,493,000 30,433,680,0<X) 12.9 15-7 6.3 5.5 . 5-2 30.7 3.3 16.6 - 1.6 - 14.6 10.5 26.3 l.l IO.I - 1 3.5 3.5 0.3 15.1 :2.3 -40.0 IJ.l 5.6 25.8 9.3 17.1 SAVINGS: Savings deposits as reported by forty-six selected banks in leading cities of the District increased o.8 per cent between November 1 and December I. This made the thirteenth consecutive monthly gain recorded and carried savings deposits as of December 1 this year, 15.5 per cent above the total re;orted for December 1, 1933. The number of savings accounts showed a slight decline for the month but an increase of 5.0 per cent for the year. . . . . Savings accounts and savings deposits m forty-six banks: December 1, 1934·-··············-················ November 1, 1934---December 1, 1933·-······-·-········-···--- Savings Accounts 396,778 397,795 377,967 Savings Deposits $II8,051,175 I 17,092,247 102,214,8II THE MONTHLY REVIEW 3 RETAIL TRADE AT 31 DEPARTMENT STORES IN THE TENTII FEDERAL RESERVE DISTRICT SALES STOCKS (RETAIL) ACCOUNTS RECEIVABLE A11ouNTs CoLLBCTBD Stores Nov. 1934 Year 1934 Nov. 30, 1934 SToc1t Tu ..NOVER Nov. 30, 1934 November 1934 Report- compared to compared to compared to November Year compared to compared to ing Nov. 1933 Year 1933 Oct. 31, 1934 Nov.30,1933 1934 1933 1934 1933 Oct. 31, 1934 Nov.30,1933 Oct. 1934 Nov. 1933 Kansas City•._. 4 15.1 13.6 0.1 -18.6 .16 .10 1.65 1.14 Even 3.8 19.9 16.1 0.1 19.6 Denver_··-····- 4 16.3 17.4 o.8 1.6 .17 .11 3.11 1.78 - 0.1 8.9 Oklahoma City 3 9.8 10.1 5.8 - 3.6 .31 .18 3.78 3.07 - 0.1 5.7 - 5.6 15.0 7.8 6.5 Tuls•--··-········ 3 16.1 13.6 5.0 - 5.4 .34 .17 4.o6 3.91 - 3.1 - 1.6 - 1.9 18.6 Wichita_____ J 14.8 13.8 4.8 16.0 .17 .13 1.98 1.75 - 3.4 5.3 6.6 12.8 Other cities.. __ 15 11.1 16.9 - 0.7 1.0 .15 .11 1.68 1.48 1.3 - 1.9 TotaL---·········· 31 17.1 16.9 1.1 - 3.9 .17 .23 1.99 2.64 NOTE: Percentage of collections in November on open accounts October 31, all stores reporting 45.3. FAILURES: Fewer failures and larger liabilities in November than in October were reported for this District by Dun and Bradstreet, Incorporated. However, the number of failures -and the amount of liabilities involved, both in the United States and ~he District, were the lowest for the month in fifteen years of record. Business failures as reported by Dun and Bradstreet, Inc.: TENTH DlSTlllCT UNITED STATES Number Liabilities Number Liabilities November 1934...................... 34 f, 564,470 923 t, 18,349,791 October 1934.......................... 54 311,314 1,091 19,968,448 November 1933··-···-············· 75 868,533 1,237 25,353,376 Eleven months 1934...... ....... 458 5,762,754 n,222 244,337,566 Eleven months 1933····-········ 960 14,487,951 19,175 475,630,152 Trade Retail trade continues to show a decided improvement over a year ago. Reports from thirty-two department stores in cities of this District disclosed the dollar volume of sales for N ovem her averaged 17. 1 per cent larger than for the corresponding month last year. Increased sales were reported by all stores but one. November business fell only 1.9 per cent short of the October volume, whereas decreases in recent years have averaged about 8 per cent. The aggregate of sales for the year to the opening of December stood 16.9 per cent above that for the like period in the preceding year and was the largest since 1931. A preliminary survey of Christmas trade indicates December sales are running approximately I 5 per cent larger than last season, with the improvement extending to all departments. Inventories are low and replacement orders frequent. The volume is pleasing to merchants but, competition being keen and operating costs up, profits are reported narrow. Stocks of merchandise on hands November 30 were 1.1 per cent larger than one month earlier but 3.9 per cent smaller than on November 30, 1933, and the lowest for the season in many years. Collections on open accounts were slightly better in November than in October and much better than a year ago. Amounts collected during the month averaged 45.3 per cent of amounts receivable at the close of the preceding month. This ratio compares with 44.1 per cent in October and 40.7 per cent last November. November collections on installment accounts averaged 16.7 per cent of amounts outstanding Stores Reporting Dry goods--··--··········- 6 Groceries--·--············ 5 Hardwar~---- 9 Furniture._. _ _ _ _ 5 Drug.._____ 7 ~I 3~ 4~ Collections same month last year 40. 7. compared to 17.3 per cent last month and 14.1 per cent last year. WHOLESALE: There was a seasonal lull in wholesale trade in November as compared to October, each of the five representative lines reporting decreases in t'he dollar volume of sales. Wholesalers of dry goods and hardware reported their business as 1.5 and 0.4 per cent, respectively, smaller than in November, 1933, but sales of groceries were 1.5, furniture 47.'l, and drugs 15.6 per cent larger. Dollar sales of the five lines combined declined 6.5 per cent for the month and increased 5.9 per cent for the year. All lines reported sales for the year to December I as above the totals for the first eleven months of 1933, the increases being as follows: dry goods, 10.1; groceries, 6.o; hardware, 'lo.5; furniture, '24.8; drugs, 'l9.5; and the five lines combined 16.3 per cent. Inventories in general were reduced during the month. Month-end stocks of dry goods were 16.9, groceries '20.9, drugs 7.4, and furniture 1.5 per cent heavier than on November 30, 1933, whereas those of hardware were 'l.8 per cent lighter. Life Insurance 1 Sales· of new paid-for ordinary life insurance were smaller in November in the states of Colorado, Kansas, Missouri, Nebraska, New Mexico, Oklahoma, and Wyoming than in October, with Kansas the only one of the seven states to report an increase over the corresponding month a year ago. Combined sales showed losses of 8.1 per cent for the month and 9.4 per cent for the year. Cumulative sales for the year to December I were, however, I 5.1 per cent larger than in the same period last year. The amount of such insurance written in the seven states and the United States, during the three months of comparison, as reported by the Life Insurance Research Bureau: Colorado __· · · · · · · - - - - Kansas ........_........ - - - - Missouri_ _ _ _ ._ _ __ Nebraska ......·-·········-··-··-·······N ew Mexico·--······-·····-······-··-·· Oklahoma. __·--··-······-············· Wyoming.. _ _ _ _ _ __ Seven states._.:: - - - - - United State.,___ __ $ Nov. 1934 4,094,000 4,86o,ooo 13,679,000 3,686,000 574,ooo 4,751,000 6o9,ooo Oct. 1934 $ 4,671,000 5,036,000 15,019,000 3,873,000 685,000 5, 159,000 653,000 $ 31,253,000 $ 35,096,ooo 476,291,000 494,781,000 WHOLESALE TRADE IN THE TENTH FEDERAL RESERVE DISTRICT SALES OuTSTANDINOS AMouNTS COLLECTED Nov. 1934 Nov.30,1934 Nov. 1934 compared to compared to compared to Oct. 1934 Nov. 1933 Oct. 31, 1934 Nov. 30, 1933 Oct. 1934 Nov. 1933 - 1.3 - 1.5 - 3.8 - 9.5 - 7.3 - 6.5 - 6.5 1.5 - 2.6 -16.8 - 8.1 o.8 -10.9 - 0.4 - 3.8 - 6.2 - 3.9 o.8 - 5.1 47.2 5.7 - 7.4 - 8.1 10.4 - 7.4 15.6 4.6 6.6 - 3.1 5.1 Nov. 1933 $ 4, 1 35,000 4,65-4,000 15,081,000 4,423,000 651,000 5,163,000 619,000 t, 34,836;000 490,771,doo STOCU Nov. 30, 1934 compared to Oct. 31, 1934 Nov. 30, 1933 -10.8 16.9 - 1.1 10.9 - 2.9 - 2.8 0.5 1.5 - 5.o 7-4 THE MONTHLY REVIEW 4 Building Checked by cold weather and rains and snows, building activity throughout the District was at low ebb during November. The F. W. Dodge Corporation reported the total value of construction contracts awarded amounted to $4,958,079, of which $668,791 was expended for residential construction. Total expenditures amounted to 47 per cent and residential construction to 2 5 per cent of the N ovem her average over the past eight years. Expenditures for residential construction were the smallest ever reported for the month. The F. W. Dodge report of building activity in the District and the United States during November and the first eleven months this year and last: TENTH DISTRICT Residential Total November 1934·-··· '/, 668,791 '/, 4,958,079 October 1934.......... 2,137,498 7,539,454 November 1933·-··· 1,295,451 5,890,826 I I Mos. 1934-......... 9,632,326 65,235,643 II Mos. 1933.......... 9,354,801 57,221,752 UNITED Residential '/, 19,924,700 26,299,800 23,615,700 234,520,400 227,806,800 STATES Total '/, 111,740,800 135,524,800 162,330,600 1,453,038,600 1,051,889,300 Building departments in seventeen reporting cities issued 379 fewer building permits in November than in the previous month but 266 more than in the corresponding month last year. Estimated expenditures increased 6 per cent for the month and were 57.3 per cent larger than in November, 1933. BUILDING PERMITS IN TENTH DISTRICT CITIES EsTIMATED PERMITS 1934 1934 1933 Albuquerque, N. M 62 21,624 '/, '$ 27 Cheyenne, Wyo ... 16 II 8,815 20 16,248 Colorado Springs, Colo,.--·-······ JI Denver, Colo,--·· 248 227 372,823 II 15,900 Joplin, Mo......·-·························· 7 Kansas City, Kans ..................... 20 14,410 29 Kansas City, Mo 108,100 139 151 Lincoln, Nebr 81 69 29,537 Oklahoma City, Okla................. 126 323,201 64 Omaha, Nebr... 70 5o,558 44 Pueblo, Colo 11,104 29 33 Salina, Kan 24,040 7 5 Shawnee, Okla. IO 8 55,5°5 IO 14,200 15 St. Joseph, Mo.·-······················-· Topeka, Kans 28 52,125 34 Tulsa, OkJ 51,010 42 58 Wichita, Kans ... _ 68,618 92 34 ---- Total 17 cities, November·--···- 1,o62 796 Eleven months .. _ 12,003 10,421 1, 1,237,818 12,211,453 1, CosT 1933 19,260 4,121 24,720 133,253 27,356 28,390 99,400 19,777 313,200 44, 17° II,044 3,775 2,900 12,6o7 15,685 14,650 12,791 787,o99 7,852,677 Lumber RETAIL: Declines of 10.8 and 16.5 per cent for the month and increases of 15.3 and 24.9 per cent over a year ago, in the sales of lum her in board feet and all materials in dollars, are disclosed by the November reports of 155 retail lumber yards in this District. Lumber stocks, which were reduced 1.1 per cent between Octo her I and N ovem her 1, were 8 per cent lighter on the latter date than a year earlier. Collections, although not quite as good in November as in October this year, were much better than in November, 1933. Collections for the month averaged 38.9 per cent of amounts outstanding October 31 as compared to the percentages of 39 per cent recorded for the previous month and 28.3 per cent for the like month a year ago. November business is herewith compared to that of October this year and November last year in percentages of increase or decrease: Sales of lumber, board fee,.__ _ _ _ _ __ Sales of all materials, dollars_.______ Stocks of lumber, board fee..._ _ _ _ __ Outstandings, end of rnont.,.___ _ _ __ November 1934 compared to October 1934 November 1933 -10.8 15.3 -16.5 24.7 I.I 8.o - 3.8 - 8.-4 Lumber production in the United States for the eleven months of the current year, as reported by the various associations to the National Lumber Manufacturers Association, was 8 per eent larger than in the same period last year but shipments were 8 per cent and orders booked 10 per cent less. Shipments so far this year have fallen 6 per cent and orders booked 5 per cent short of production. Grain Marketing Arrivals of all classes of grain at the five leading markets of the District were substantially lighter in November this year than in November last year or the ten-year average for the month. Marketings of corn, which have been unusually heavy in recent months, fell off abruptly to 70 per cent of the normal volume and were the lightest since June. Most of the offerings came from Iowa on con tract. Receipts of wheat were, with one exception, April, 1925, the smallest for any month in over fifteen years of record. Only slightly more than half the usual volume of oats was offered for sale and marketings of rye, barley, and kafir were comparatively insignificant. Shipments of wheat, corn, and oats exceeded receipts and terminal elevator stocks were again reduced. Receipts of six classes of grain at the five markets are here shown for the month of November and the first eleven months of 1934 with comparisons: Oats Bushels 1,500 216,000 158,000 130,000 21,000 Rye Bushels Barley Bushels Kafir Bushels 1,500 1,400 9,600 16,000 25,200 Nov. 1934---· 2,529,550 2,159,400 526,500 Oct. 1934...... 3,823,850 6,785,650 1,133,300 Nov. 1933·--· 4,671,150 3,884,000 578,500 II Mos. 1934 97,135,800 50,610,050 6,922,800 II Mos. 1933 91,998,750 45,187,600 10,044,800 2,900 2,900 28,700 Hutchinson ... Kansas City.. Omaha.......... St. J osepL_. Wichita... -..... Wheat Bushels Corn Bushels 508,950 5,000 1,192,000 1,434,000 169,600 460,6oo 272,000 213,000 46,800 387,000 15,6oo 6,500 509,500 828,700 25,600 47,300 13,600 65,600 318,400 498,450 1,310,200 928,300 1,464,300 33,250 Grain prices strengthened during the month. Corn reached the _highest levels since August, 1930, and oats since July, 1928. Quotations on rye, barley, and kafir were the highest in four years or longer. Flour Milling Operations at flour mills in this District slowed down seasonally during November to 63.5 per cent of full-time capacity as compared to 67.3 per cent in October and 58.7 per cent in November, 1933. Flour production for the month totaled 1,961,666 barrels, or 7 per cent below the ten-year average output but 8.3 per cent above last year's volume. Production for the calendar year to December 1 amounted to 20,693,331 barrels in 1934 and 20,612,437 barrels in 1933. The output of flour at the principal milling centers of the District as estimated from the weekly reports of southwestern mills to the Northwestern Miller: Atchison ........................................ Kansas CitY·--··········--- Omaha......................................... . Salina.... _ _ _ __ Wichita·--····································· Outsid.._'_ _ _ _ _ _ __ Nov. 1934 Barrels 120,956 500,821 112,894 156,013 145,501 925,481 Oct. 1934 Barrels 132,721 524, 259 122,110 150,792 153,826 1,075,57 1 Nov. 1933 Barrels 109,445 481,313 101,755 146,553 164,207 808,3o6 Total..... ---··- - - - - 1,961,666 2,159,279 1,Sn,579 *United State, 5,373,754 6,012,197 5,394,331 *Represents about 60 per cent ot the total output in the Unit<:d States. Flour trade was quiet throughout the month but shipping directions were somewhat freer. Old contracts are reported well cleared up and bakers' and jobbers' stocks low. The mill- THE MONTHLY REVIEW feed situation was extremely tight with demand, especially for shorts, more than ample for the limited offerings. Prices advanced sharply, bran closing $3 and shorts about $5.50 per ton above the opening. Millfeeds being higher, flour prices did not follow the full advance in wheat and closed unchanged to 10 cents per barrel stronger. Agriculture Light to heavy snows and rains fell over practically all sections of the District during November and the first half of December. Winter wheat in eastern areas, where the acreage is unusually large owing to pasture needs, is in excellent condition with growth in occasional fields being too rank. The crop ranges from fair to good in the central, or principal producing area, and fair to poor in the western third of the wheat belt. Fields in central and eastern sections are furnishing much grazing, although recent snows and wet fields have prevented pasturing somewhat. A heavy sub-soil moisture deficiency continues particularly in the western third of the District. All harvesting operations are virtually completed. An unusually late frost was beneficial to cotton and estimated yields were raised slightly between November I and December I. .Picking and ginning progressed rapidly under favorable weather conditions. Grain sorghums and late planted forage crops have turned out better than anticipated, improving the winter feed outlook. For the first time in many years there is very little or no corn being harvested for grain. Prices for this year's tobacco crop have, owing to the general poor quality resulting from the drouth, averaged somewhat lower than a year ago. On the basis of December I prices the farm value of crops produced in the Tenth District during 1934 was $494,925,000, or 13.9 per cent less than the value of the crops harvested in 1933, whereas, for the United States, crop returns as a result of higher prices were 16.2 per cent larger this year than last. Low yields accounted for the poor showing for this District, valuations of corn, grain sorghums, cotton, white potatoes, and dry beans being conspicuously small. 1934 crop yields in the seven states, whose areas or parts thereof comprise this District, and their farm value, as estimated December I by the Department of Agriculture, thoussands omitted: Production] Farm Value 1933 1932 1934 1933 193 2 1934 Winter wheat, bu. ·-··· 158,087 136,275 216,986 '$137,540 '$ 93,353 '$ 63,027 Spring wheat, bu....... 3,608 8,508 6,739 3,146 4,966 1,966 All wheat, bu......... 161,695 l#,783 223,725 140,686 98,319 64,993 Corn, bu..................... 75,176 505,895 688,283 68,088 174,381 112,361 Oats, b...__ _ _ .. 62,765 II 1,599 177,736 33,677 32,732 23,133 2,203 3,495 1,192 1,016 708 Rye, bu .......... ·-·········· 1,326 7,549 6,4n 6,663 Barley, bu.·-···········... 10,091 21,345 40,269 Grain sorghums, bu... 13,988 37,290 39,528 n,128 14,692 7,679 All tame hay, tons.... 6,405 10,800 I 1,272 92,533 65,280 6o,282 Wild hay, tons.___ 1,762 3,273 4,349 22,951 14,956 16,759 Sweet sorghums, tons 1,595 2,907 2,n3 I S,II3 10,982 6,6o6 Broom corn, tons-.... 16 23 28 2,633 2,309 1,o68 Sugar beets, short tons 2,553 4,288 3,16o 20,o62 14,745 Cotton, bales._........... 662 1,613 1,472 39,067 72,269 38,955 Cottonseed, tons._···294 717 655 10,148 8,297 5,299 White potatoes, bu... 16,26o 33,143 35,626 10,573 22,206 u,630 Sweet potatoes, bu._ 1,656 2,410 3,204 1,472 1,632 1,372 Dry beans, bags-.. -.. 663 2,299 1,16o 3,091 6,133 1,792 8,721 7,000 6o3 94 1 945 Tobacco, lbs·--··-······ 4,020 Apples, b,...____ 5,496 7,o7'J. 5,406 5,096 5,54° 3,563 Peaches, bu •. __ ........ 2,558 921 1,735 2,501 1,169 1,050 6o2 591 723 477 35 1 Pears, bu·--··-········· 990 20 22 684 814 802 Grapes, fons·---···-···· IS 64 crops, 7 states·-····· 494,925 574,596 390,807 Total 64 crops, U.S. --···· 4,764,507 4,100,712 2,86o,6d 5 The acreage of forty-four and the farm value of sixty-four principal crops, by states for the past three ye-ars, as estimated by the Department of Agriculture (values are in thousands of dollars, ooo omitted): TOTAL ACREAGE FOR.TY-FOUR. PRINCIPAL CR.OPS Colo ....• Kans .... Mo....... Nebr. .. N.M .. . Okla .. _. Wyo ..... 1934 3,818,000 17,498,400 11,003,100 15,254,000 921,300 12,466,000 1,355,000 1933 6,042,500 20,293,900 12,946,000 21,469,000 1,454,6oo 12,961,000 2,030,000 TOTAL FARM VALUE SIXTY-FOUR. PRINCIPAL CR.OPS 1932 5,749,500 ,, 24,222,900 13,839,300 21,794,000 1,573,200 15,025,000 2,036,000 1934 1933 48,9 27 ,, 56,567 '$ 118,139 106,248 104,573 122,141 85,233 133,063 17,97 1 17, 239 103,228 121,326 16,854 18,012 1932 38,252 82,468 82,965 87,501 9,874 75,993 13,754 7 States 62,315,800 77,197,000 84,239,900 t, 49-4,925 $ 574,596 'I, 390,807 U.S ..... 283,584,200 324,069,700 354,670,800 4,764,507 4,100,712 2,860,645 The largest fall sown acreage of winter wheat since 1930 is indicated for the Tenth District and the United States by the December I survey of the Department of Agriculture. The national acreage is 5.9 per cent greater than a year ago and, due to substantial increases in the states of Missouri, Kansas, Nebraska, and Oklahoma, the District acreage is 7.5 per cent larger. Based on present conditions and past experiences, abandonment between now and harvest of about 18 per cent of the acreage seeded and comparatively low per acre yields are anticipated. The Government's long range forecast of production places the 1935 crop at about 475,000,000 bushels compared to 405,034,000 bushels harvested in 1934 and a five-year average production of 632,061 ,ooo bushels. Rye acreage is also larger than last year, the increase for the nation being: estimated.iat~13.3 -per 'cent. Fall sown acreage and December I condition of winter wheat: Fall Seeded Acreage (ooo omitted) 1933 1931 1932 1930 1,218 1,433 1,205 924 964 13,o49 12,082 12,853 1 2,945 13,884 1,553 1,412 1,605 1,938 1,550 2,890 3,120 3,o63 3, 247 3,5°4 361 400 466 344 453 4,685 4,615 4,338 4,4 19 4,4°7 180 202 228 210 171 1934 Colo ......... Kans ..... .. Mo........... Nebr,.---· N.M ....... Okla.·-····· Wyo.·-····· 7 States.- 24,415 44,306 u. s.....-.. 22,762 41,850 23,100 42,669 23,924 42,283 25,717 45,240 Condition December I 1934 1933 1923-32 67 37 78 71 64 79 83 84 93 86 79 75 6o 71 84 76 7S 79 86 50 63 73.3 77.8 69.0 74.3 80.3 82.4 Rental and benefit payments to farmers under cotton, wheat, and corn-hog adjustment contracts through October 31, as reported by the Department of Agriculture, amounted to $421,697,389 for the United States and $105,610,299 for the seven states, whose areas or parts thereof comprise this District. Kansas, preceded by Texas, ranked second, Oklahoma fourth, Nebraska fifth, and Missouri tenth in total payments to date. Payments in the seven states during October amounted to $28,401,198 as against '$13,662,676 received in September. Final payments under the 1933-34 wheat acreage reduction contracts and the second installment of the 1934 corn-hog adjustment program are now being made. Live Stock November receipts of cattle and calves, Government purchases included, at the six leading market centers of the District were the smallest since June, and, although 12.8 and 20.9 per cent larger than a year ago, were below the ten-year average for the month. Commercial supplies were the lightest for the season in many years. Swine numbers, including packers' direct purchases, as usual increased, showing a gain of 7. 5 per cent over October. The supply was 4 per cent above normal and only 1.4 per cent smaller than a year ago, despite substantial 6 THE MONTHLY REVIEW reductions during the past year in numbers on farms and spring far losses have been slight, hut cattle and sheep arc in no confarrowings. Due to the unfavorable feeding ratio, with corn dition to withstand a severe winter without heavy losses. at f,1 per bushel and finished hogs at $6 and less per hundred- Numbers have been materially reduced through direct shipweight, offerings consisted of an over supply of lightweight ments and Government purchases. The shortage of stock water has been relieved by recent snows and rains. and unfinished kinds. Government buying of cattle has been extended to December These markets received only about one-fourth as many sheep and lambs in November as in October and two-thirds as many 31, with an additional allotment sufficient to purchase approxias in November, 1933, or normally. Marketings of horses and mately I ,000,000 more cattle in the acute drouth areas. Indimules were the heaviest for the month since 1919, totaling cated allotments for the states of this District are as follows: 13,685 head in November, or 3,509 less than in October and Colorado and Wyoming, 64,000; Oklahoma and Kansas, 30,000; New Mexico, 125,000; Nebraska, 37,000; and Missouri, 220 more than in November, 1933. · Severe weather conditions and the scarcity of and high 16,400 head. A decrease of 14,236,000 head or 48 per cent in the fall pig prices for corn and other feeds depressed the market for low and medium grade cattle and lightweight hogs and pigs. A crop of 1934 from that of 1933; a decrease of 35 per cent in the sharp decline in receipts benefited sheep and lamb prices toward 1934 pig crop, spring and fall combined, from that of 1933; the close of the month. Finished cattle and good to choice and a prospective decrease of 17 per cent in the number of stockers and feeders closed strong to 25 cents per hundred- sows to farrow next spring from the number farrowed in the weight higher but other grades were weak to 25 cents lower. spring of 1934 is shown by the December I pig crop report of The Kansas City top of f,8.50 for long fed steers was the highest the United States Department of Agriculture. for the month since 1931, bettering last year's price by f,1.75. Meat Packing As the month advanced there was an ever increasing spread between lightweight hogs and those weighing 200 pounds and Operations in the beef and mutton departments of Tenth over. Heavies, butcher weights, and sows were up 25 cents District meat packing establishments fell off sharply from to 40 cents per hundredweight, but other classes were 25 cents October to November but processing of pork showed a seasonal to f,1 lower, light lights and pigs suffering the greater penalties. increase. Cattle slaughter was, owing to Government operaThe November top for hogs at Kansas City was f,6, or f,1.80 tions, the heaviest for the month since 1926 and that of calves above a year ago and the highest for the month since 1930. established a new high. The purchases of hogs, including In December pigs sold on the Kansas City market as low as those shipped to packers' yards, were 9.9 per cent less than in 1 to 1½ cents per pound, or 50 cents each and at country November, 1933, but exceeded the ten-year average by 10 per auctions at 10 cents each. Fed and native lambs finished cent. The slaughter of sheep and lambs was 26.8 per cent mostly 50 cents higher, advancing to a top of f,7 as against smaller than a year ago, 23 per cent below normal, and with f,7.25 last year. Other classes of sheep were steady to 25 two exceptions, November, 1924, and November, 1920, the· cents higher. lightest for any month in oyer fifteen years of record. According to the Bureau of Agricultural Economics, shipIncluding cattle and calves slaughtered for Government ments of stocker and feeder cattle into the corn belt states in account, the November slaughter of cattle under Federal November were 43 per cent below the five-year average and meat inspection was the largest for .t he month since 1918 and the smallest in sixteen years, with the movement from July that of calves established a record for November. Cattle to November, inclusive, the smallest on record. Shipments slaughter was the smallest since July and calf slaughter the of feeder lambs through stock yards into the corn belt totaled smallest since February. The slaughter of sheep and lambs 140,000 head in November compared with a five-year average declined seasonally from October to November but hog numof 238,000 head. Since July I these shipments have amounted bers increased. Compared to November, 1933, the slaughter to 1,492,000 head compared with 1,219,000 head during the of cattle increased 58 per . cent, calves 16 per cent, and sheep like period last year and a five-year average of 1,700,000 head. I per cent, whereas that of hogs declined 10 per cent. Feeding operations, following feed supplies, have shifted to Live stock slaughtered under Federal meat inspection: the corn belt states east of the Mississippi River as reports Cattle Calves Hogs Sheep indicate that the number of cattle and lambs fed in the western November 1934·-············· 1,232,000 495,000 4,023,000 1,368,000 states will be much smaller this season than last. October 1934.................... 1,408,000 658,000 3,546,000 2,009,000 777,000 434,000 4,501,000 1,356,000 The Division of Crop and Live Stock Estimates, United November 1933-·····- ······ States Department of Agriculture, reports the December I Eleven months 193+-····· 12,075,000 6,894,000 39,390,000 16,003,000 Eleven months 1933·-····· 7,935,000 4,505,000 42,696,000 15,963,000 condition of western ranges and live stock as the poorest of NOTE: The slaughter of cattle and calves for Government account is inrecord. Mild temperatures have favored live stock and so cluded in the totals for .1934 and of hogs for 1933. Kansu City.............. Omah St. Joseph---··········Denver--·-··············· Oklahoma CitY -······· WichitL--····-·········· Cattle 158,940 124,369 39,282 7:2,873 47,35 2 20,o61 NOVEMBER MOVEMENT OF LIVE STOCK IN THE TENTH DISTRICT STOCICU,S AND FEEDERS PURCHASED FOR SLAUGHTER RECEIPTS Sheep Calves Hogs Hogs Sheep Cattle Calves Hogs Sheep Cattle Calves 36,n6 •238,040 64,291 19,160 82,531 96,348. 32,351 37,870 • 259,55o 5,382 7,936 16,022 19 1 ,349 67,081 20,745 x"6,019 1,456 74,222 84,781 27,144 4,508 259,671 4,828 . 8,067 131,246 136,629 ' 46,:295 2,825 32,052 4,865 39,950 8,653 789 16,517 667 20,035 36,419 36,508 3,386 69,o49 58,538 125,753 . 5,697 II,90S 19,616 4,461 6,683 23,025 34,:269 5,984 8,253 26,624 18,718 8,992 14,036 24,237 3,74° 3,599 101,462 364,761 November 1934 ........ 462,877 764,o37 183,217 710,988 1,411,877 7 1J,5I2 October 193+-······-· 775, 16o 548,907 410,175 November 1933---· 83,9 14 11 Months 1934 ·--- 6,129,511 1,330,891 8,3°7,99 2 7,944,818 7,651,692 620,994 10,217,433 11 Months 1933 - -· 3,793,202 •Includes 151,052 hogs shipped direct to packers' yards. 100,868 156,164 151,058 1,171,071 886,635 l4,o65 30,304 37,8o6 150,513 170,227 109,0 59 472,846 238,834 3,5°7 120,366 1,426,893 91,226 1,378,178 12,884 16,001 265,918 322,905 197,640 3,225,299 2,102,o61 1g6,040 75,482 64o,907 136,165 595,237 599,54 1 41.,137 711,496 267,958 ¢8,189 7,048,332 3,845,771 386,952 9,144,816 3,722,051 7 THE MONTHLY REVIEW Cold Storage Holdings Effects of the unprecedented drouth liquidations arc reflected in part in the December 1 report of United States cold storage holdings iss1,1ed by the Department of Agriculture. Accumulations of beef, pork, lamb and mutton, and miscellaneous meats were exceptionally heavy during November and the in_to-storagc movement of poultry was also larger than a year ago or normally. Holdings of lard, eggs, butter, and cheese declined during the month. Withdrawals of lard were considerably lighter and of butter somewhat heavier than in November, 1933, or the five-year average. Eggs met a lagging c~nsumers' demand and, although fresh supplies were light, withdrawals from storage did not hold up to seasonal expectations. December I holdings of all commodities except lard, eggs, and butter we_re heavier than a year ago. Holdings of only two commodities, eggs and butter, were below the five-year average for the season, the increases, which exclude meats held for Government account, being as follows: beef, 101.3; pork, 27.7; lamb and mutton, 33.1; poultry, 13.3; miscellaneous meats, 96.7; lard, 85.2; and cheese, 23.9 per cent. United States cold storage holdings as of December 1: •nee. I Nov. I Dec. I Dec. I 1934 1934 1933 s-Yr.Av. Beef, lbs·- ·--······································· 127,648 108,399 70,010 63,-406 Pork, lbs,.·-··-----············ 569,664 504,737 529,454 446,251 Lamb and mutton, lbs....................... 4,686 3,074 2,888 3,520 Poultry, lbs........................................... 105,649 73,401 91,211 93,276 •--Turkeys, lbs·-····----············ 9,572 1,763 6,500 6,914 Miscellaneous meats, lbs.·--··············· 113,450 106,670 54,243 57,676 Lard, lbs•.... - - - - 103,968 105,519 n6,077 56,153 Eggs, cases_ _ _ _ _ _ _ 2,380 4,633 2,641 2,814 Eggs, frozen (case equivalent).......... 2,174 2,535 2,o67 2,139 Butter, creamery, lbs.·----···········-···· 81,023 u1,073 138,166 83,455 • Ch~ese, all v~r~eties, lbs..................... 109,365 II8,oo8 99,009 88,258 Subject to rcVJs10n. ••Included in Poultry. (ooo omitted). NOTE: Meats held for the account of the Federal Emergency Relief Administration are not included in the above. Petroleum For the first time since crude oil production was placed on a quota basis set by the Federal Oil Administration production in this District fell below Federal allowables in' November. The flow, as estimated from the weekly reports of the American Petroleum Institute, averaged 665,000 barrels per day during the month, or 2,500 barrels per day under allowables and 22,000 and 33,000 barrels per day, respectively, below the estimates of the Bureau of Mines for October this year or November last year. Gross production declined 6.j per cent as compared to_ October and 4.5 per cent as compared to a year ago. · Effective December I, Federal allowables were reduced in ?klahoma, Kansas, Wyoming, and New Mexico _and unchanged m Colorado. The reductions for the District amounted to 10,500 barrels per day and for the United States to 33,300 barrels per day. The gross production figures for November are shown in the following with comparisons: I Oklahoma.-.................................. . Kansas ......................................... . Wyoming.................................... .. Colorado.___ ···························· ... . New Mexico·---···········............... . Total five states.......................... Total United States.................... •Nov. 1934 Barrels 13,707,000 3,696,000 1,069,000 96,000 1,381,000 19,949,000 71,175,000 Oct. 1934 Barrels 14,571,000 3,987,000 1,161,000 103,000 1,457,000 21,279,000 76,776,000 Nov. 1933 Barrels 15,020,000 3,648,000 884,000 79,000 1,268,000 20,899,000 69,755,000 The underlying structure of the crude oil market improved somewhat and quotations in the mid-continent area remained unchanged at schedules, ranging from 76 cents to $1.08 per barrel per gravity basis, posted September 29, 1933. Prices of refined products strengthened the forepart of the month as the production and shipments of "hot" oil and "hot" oil products decliried. Gasoline was weak at the close but naturafs and heating oils were strong. Bituminous Coal According to estimates, based on the weekly reports of the United States Bureau of Mines, soft coal production at mines in six coal producing states of the Tenth District during November totaled 1,840,000 tons, 176,000 tons less than in October but 90,000 tons more than in November, 1933. Output for the year to December 1 amounted to 15,230,000 tons this year and 14,860,000 tons last year. Tonnage figures for the six states and the United States: Oct. 1934 Tons 630,000 563,000 n5,ooo 178,000 530,000 •Nov. 1934 Tons 6o2,ooo 530,000 1o6,ooo 144,000 458,000 Colorado._______ Kansas and Missouri .................. New Mexico·---·········--·········----·Oklahom..___ _ _ _ __ Wyoming., _ _ _ __ Nov. 1933 Tons 546,000 515,000 113,000 141,000 435,000 Total six states ....•- ··--··············-· 1,840,000 2,016,000 1,750,000 Total United States.................... 30,298,000 32,573,000 30,582,000 •Estimated from the weekly reports of the United States Bureau of Mines. Zinc and Lead Shipments of zinc ore and lead ore, from the Tri-State district during the four weeks' period ended December 1, were somewhat larger than in either the preceding four weeks' period ended November 3 this year or the corresponding four weeks' period ended December 2 last year. A majority of the mills were closed one week and several were shut down a greater part of the month. Cold weather late in the month slowed up production. Ore values were lower than a year ago. Lead ore prices s,lumped $4 per ton during the month and for one week zinc ore was down '$2 per ton but half of this loss was recovered the second week of the month. Closing prices this year and last were 1 lead ore $32 and $45 per ton and zinc ore $25 and $30 per ton. The tonnage and value of zinc ore and lead ore shipped from mines in Oklahoma, Missouri, and Kansas: ZINC 0R.E Oklahom _ __ _ _ Kansas ...__ _ _ _ _ _ __ Missour... · _ __ _ __ 4 4 4 Wks. ended Dec. 1, 1934·-----· Wks. ended Nov. 3, 19.14•-··•·· Wks. ended Dec. z, 1933.___ _ Ou LEAD Tons Value 18,862 J 468,431 4,273 106,207 1,222 30,275 Tons 1,786 ' 249 102 Value 6o,326 24,357 $ 6o4,9i3 21,789 557,042 16,207 486,210 2,137" 1,055 72,349 36,946 105,500 z,no 8,592 3,-431 Cement Production of Portl~nd cement at mills in the Tenth District in November, 1934, showed an increase of 37.7 per cent over October this year and of 52.7 per cent over November last year. As shipments receded for the month, stocks on hand November 30 were 9.4 per cent larger than one month earlier and 4.5 per cent larger than on the corresponding date last year. Production, shipments, and stocks of finished Portland cement at mills in this District as reported by the United States Bureau of Mines: TENTH DISTR.ICT Production Shipments Stocks Nov. 1934·---·-- 774 590 2,137 Oct. 1934.......... 562 765 1,953 1 Nov. 933···-····· 507 482 2,044 II Mos. 1934.... 7,392 7,221 II Mos. 1933.... 5,666 5,922 UNITED STATES Production Shipments Stocks 5,779 5,664 20,086 6,675 8,439 19,972 4,672 4,463 19,709 73,235 72,803 59,847 6o,348 8 THE MONTHLY REVIEW Business Conditions in the United States By the Federal Reserve Board Fll'Cf"lt c~"UNl I. . '"° INDUSTillAL PRODUCTI ON IJO 130 120 120 110 110 100 100 ,0 90 BO IY.) 70 70 60 60 50 1·,10 10Z? 1:,.3,t Index number of industria l production, adjusted for seasonal v ari ation. Latest figure: November, 74. MILUOWlOfDOl11qS 600 •"'·'-"'£1"'!1rf tlOUAIII'~ GOrlSTRliCTION G)~ ·;R;(.TS AWAR:li:D 600 I I ! ' 1""""'~ - + - ---'----'--------1----1500 . JOO Three month moving averages of F. W. Dodge ciata for 37 eastern states, adjusted for seasonal vari ation. L atest figure based on d ata for September and October and estimate for November : total, 125.7; resid enti al, 21.9; all other, 103.8. Index of United States Bureau of Labor Statistics. (1926= 100.) By months, 1929 to 1931; by weeks, 1932 to date. Latest figure is for week ending December 15. t,1u1"" • _ or••> •-. 7 P ILL,OfitSCrDOuM $ ME.MBER BAtll< CREDIT 7 I 1932 W ednesday figures for reporting member banks in 90 leading cities. Latest fig ures are for December 12. In ~ovember the rate of industrial act1V1ty showed little change and the general level of commodity prices remained unchanged. Distribution of commodities to consumers was well maintained. PRODUCTION AND EMPLOYMENT: Volume of industrial production declined in November by an amount somewhat smaller than is usual at this season and consequently the Board's seasonally adjusted index advanced from 73 per cent of the 19231925 average in October to 74 per cent in November. In the steel industry output continued to increase during November and the first three weeks of December, contrary to the usual seasonal tendency. Automobile production also showed an increase in the early part of December, following a decline in connection with preparations for new models. In November lumber output decreased by more than the estimated seasonal amount. At woolen mills there was a considerable increase in output, while consumption of cotton by domestic mills showed a slight decline. Activity at meat packing establishments showed less than the usual seasonal increase. Production of the leading minerals was at about the same level as in October. Factory employment declined between the middle of October and the middle of rovember by the usual seasonal amount and was at the same level as a year ago. Declines reported for the automobile, shoe, and canning industries were smaller than seasonal, while decreases at railroad repair shops and sawmills were larger than are usual at this season. At meat packing establishments, where employment has been at a high level in recent months, there was a considerable decline but the number on the pay rolls in November was larger than in the corresponding month of other recent years. Employment at woolen mills showed a substantial increase. The number employed on construction projects of the Public Works Administration declined further in November, according to the Bureau of Labor Statistics. Value of construction contracts awarded, as reported by the F. W. Dodge Corporation, showed a considerable decline in November and the first half of December, following an increase in October. The indicated decline in awards from the third to the fourth quarter was somewhat smaller than usual. Department of Agriculture estimates for December I indicate that production of principal crops this season was about 22 per cent smaller than in 1933 and 32 per cent below the average for the previous ten years, reflecting reductions in acreage and in yield per acre. There has been a shortage in feed crops accompanied by a sharp increase for the year in the slaughter of live stock. Although output of agricultural commodities has been smaller than in any other recent year, farm income has been larger than in either 1932 or 1933, reflecting chiefly higher prices, and, to a smaller degree, benefit payments. DISTRIBUTION: Total freight carloadings declined in November by less than the estimated seasonal amount, reflecting chiefly a smaller decline than is usual in shipments of miscellaneous freight. Retail sales generally have been well maintained. Department store sales increased by slightly less than the estimated seasonal amount in November; preliminary reports for the first half of December, however, indicate a more than seasonal increase in Christmas trade. COMMODITY PRICES: Wholesale commodity prices generally showed little change during November and the first half of December. Prices of scrap steel continued to increase during this period, while corn prices, which advanced rapidly in November, declined somewhat after the first week of December. Retail food prices declined in November, reflecting lower prices for meat. BANK CREDIT: Developments at Federal reserve banks in December reflected largely the seasonal increase in the demand for currency and the continued inflow of gold from abroad. . Loans and investments of reporting member banks in leading cities showed an increase of $150,000,000 in the four weeks ended December 12, after declining somewhat in the preceding four weeks. The growth reflected increases in holdings of United States Government obligations and in brokers' loans. Deposits at banks showed a further considerable growth. Yields on short-term Government securities declined slightly in December, while other short-term open-market money rates showed little change. On December 15 the discount rate of the Federal Reserve Bank of Atlanta was reduced from 3 per cent to 2½ per cent and on December 21 a similar reduction was made at the Kansas City Federal Reserve Bank.