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(11 copy of this bulletin ls received in advance, it should be understood that It la intended as a epecial courtes)' to those who have ldndly assisted in Its preparation, and that its contents e.re confidential.) This copy shall not be released for publication before Feb. 2, 1917. FEDERAL RESERVE BANK OF KANSAS CITY CHAS. M. SAWYER CHAIRMAN BOA.RD OF DIRECTORS AND FEDERAL. RESERVE AGENT Report of Conditiona in District No. 10, for the February Issue of The Federal Reaerve Bulletin FEDERAL RESERVE BOARD, W ASITTNG'l'ON, D. C. J nnuary 20, 1917. Gentlemen : - AGRICULTURE Every state in whole or in part within this district showa a noticeable increase in the total estimated vo.lue of the thirteen principal crops for the year Hll6 over 1915, as reported by the Department of Agriculture, and as shown by the following statement: (Values <1re stated in millions. i. e., three ciphers omitted.) Value State 1916 1915 Nehra~ka. . .................... . ............ $390,517 $246,459 Kansas. . . ................................... 314,453 260,517 Missouri. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 260,049 239,399 Oklahoma.................................... 223,723 171,774 Colorado ..................................... 106,453 71,973 Wyoming. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,32:l 25,108 New Jl'Iexico . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,670 15,376 Varying reports are being received with regard to the condition of the winter wheat, but on the whole the promise is .not far from normal. In soruo scetions of the district heavy snows have fallen and will be of inestimable value, hut in other localitie,; precipitation has heen deficient and some complaints of damage have heeu received. LIVE STOCK General conditions, in spite of the scurcity n,nd high prices of feed, are said to be favorable for the feeder. Record high pricos for cattle, and Rcnrcity of feed, ,vith attendant increased cost, bas stimulated the movement of short-fed stock. 'l'l1ere was 11. decided increasG in the receipts of cattle and sheep at the markets during December over the same month of the previous year, with a slight increase; in the number of hogs. Receipts for the year l!Jl6 over 1915 in both cattle nnd hogs, how·ever, were marked, while sheep in the same period, showed a dccitled falling off, with prices of the latter exceeding any previous record. Prosperity in western sheep circles has received an additional impetus in the earlier contracting qf wool at unprecedented prices. There a.re some indications of an increased demand for loans on live stock, and stockmen of this section are securing a greater portion of their accommodations from local banks than for many yea.rs, which condition may be attributed, in part at least, to the provisions of the Federal Reserve Act permitting the discount of six months paper secured by live-stock. MINING Colorado's metal output for 191G sets a new record for the industry in that State. The value of five metals only, i. e., gold, silver, copper, lead and spelter, exceeclcd the value of 1915, more than 25 per cent, although the p118t season was not favorable to the production of gold, the cost of mining per ounceplacers accepted-heing rated as tho highest in the annals of the inclustl·y. Reliable figmes show that the value o.f zinc, lead und calamine ores produced ii1 the Missouri-Kansas-Oklahoma district for 1916 exceed.'> the total of 1915 by 34 per cent. 'l'his district produced approximately one-half of the entire production of jack (zinc blende) mined in the United States during the pust year. The 1916 season has not only been a banner year in production and value, hnt the field of industry has been expanded wonderfully. The new year opens auspiciously for continued prosperity in the mining industry ,.vith active work in the developing of prospects. OIL As indicated in our last report, there have been rapid a clvnnces in the price of crude oil iu the Kansas and Oklahoma fields, the quotation now standing at $1..70 per barrel with expectation of further increases. The present price is the highest ever posted in these fields. Owing to this inercasc much new work is being planned, but is t.eriously delayed by lack of water for drilling purposes. Leasing is exceedingly active, while the smaller producing wells, which could not be operated profitably under previously prevailing prices, have come into pt·omincnce. Thirty-five per cent of the total oil produced in the United States in 1916 is said to have come from the Oklahoma fields. MANUFACTURING Although the manufacturing industry in this (\istrict is in its infancy, an<l docs not compare in volume with that of the eastern districts, the past year h,rn shown a 1mbstantial growth not only m the volume of business tumed out, but m the construction of new factories and increased facilities to meet the growing demands of trade. WHOLESALE AND RETAIL The completion of inventories has accentnatec1 the unprccc<lcnted volume of mercantile husincss transacted during 1916. The usual post-holiday quirt has been less marked than in p1·evious year,;. Collections r.ontinue uncommonly good. Business in dry goods and garment lines has been of good volume, slow business by reason of previous mil<l weather having since been offset by the demand proclnccd through generally lowe1' temperatures. 'rhere has been an unnsual number of retailers at the markets, indicating a disposition to make arrangements for spring buyiug earlier than has been theii- custom. Clothiers have enjoyed a most successful year. Customers are demanding better merchan(lisc, al- lowing good profits in spite of increased costs. In implements, jobbers declare that their snggestions for early shipments have met with a ready response from the trade. The mai11 complaint is in getting factory shipments. Few cancBllations or reductions of original specifications a.re reported. The new year started ·with general advttnccs of 10 per cent, causing earlier orders to avoid future price increases. 'l'he gradual shifting of the automobile business from a summer business to au all-year-round line is more and more apparent, the month of December having been almost as profitable as the month of Jmie. Local authorities declal'e that $50,000,000.00 worth of motor cars have been distributed in this territory during 1916. Cement dealers report a very gratifying increase of 15 per cent in 1916 over ]915, with the outlook bright. Stocks at mills arc the lowest they have been for many years, with a growing demand. Owing to uncertainties e:xisti.ug, however, large contracts and railroad buying is not what it should be. 'l'he wholesale furniture husirwss showed nn increase of 20 per cent in 1916 over l!J15, an average of 15 per cent of which was probably due to advance in p1·iccs, and approximately 5 per cent in the actual volume of furniture sold. Losses ai-e about one-halJ what they were in 1915, The mail order business report:; one of the smoothest operating- years in its history, having at no time been l1indered through the general labor shortage. Salaries have been increased not less than to per cent, in addit.i.on to a general distribution of extra compensation because of increased cost of living, Factory holdings show an inereasc of from :15 per cent to 38 per cent in all lines, despite nnst11 ble and difficult merchandising comlitions. li'lour mills report a restriction of trade in hotli domPstic and export channels. Grindings have g1merally been on olrl bookings. Local mills are not selling anywhere near the volume of flour they are tnrning out. The latter part of December showed considerable building in progress and the amount of work upon which hitb were asked was large, but since that date the activity has not been so pronounced. Plans foi- conkmplat.nl work is in ntther llllUsnal volume, nnd the p1·ospects point to a busy year. 'l'he average perce11tage of incro11~e in value.~ of hnilding permits issued in eight important cities in this cfo1trid for the year 1916 ovel' t;1e year ID15 was 2-J.,4 per cent. LABOR 'l'he complaint of laho1· shortage is uow uncommon, in fact, in the larger ci.ties, employment hnream; nrc unable to snpply jobs fo1· :ill applieants, but this is probably the natural result of the season imd of tlie nsual influx to tlw ci~i<•s dnring the winter months. 'l'licrc has been some threatened disturb- ance among the laborel'S in the coal fielcls in Colorado, bnt this is pnrely local in charader. Labor conditions may be said to be better than normal for this season of the year. FINANCIAL Conservatism is apparent from tlw hcaltl7.v reserveis being maintained by the majority of hanking institutions, ·while tl1is may, in part, hf' (lne to lar.k of demand, there is unquestionably a feeling that the uncertainty o_f the futmc clemurnls n close scrutiny of investments. Interest rates remain practically unchanged, hut competition is close for short-time loans of certain liquidity. All reports continue to show increases in bank clearings, deposits and post office receipts. Thirteen important cities in the distrid show an average increase in clearings of 44.5 per cent for the year 1916 over the year 1915. Abstracts of reports now being received from tlw banking departments of states within this district show deposit increases in state hanks running i11to huge figures, and there is every indication that these increases in all banks will continue to expand. Statement of Condition of FEDERAL RESERVE BANK OF KANSAS CITY, At Claae of Buaineee, January 19th, 1917. RESOURCES. Gold Coln and Certlfica.tes ................•.......... . •.......... .•. .... $ 6,901,606.00 Credit be.lances in Gold Settlement Fund. . . . . . . . . . . . • . . . . . . . . . . . . . . . . . • . 26,663,f>OO.OO Legal Tender Notes, Silver Certificates and Subaidiary Coin....... .. ..... 209,102.00 Tote.l -Cash ...••...•.••...•...........••....•..•..•...••....•••. .... $33,764,207,00 Commercle.l Paper (re-discounts) .......... ...... .... , .•.•..••......•.. .. $ 439,763.66 Acceptances. . ....••.....•..... .... , ..•.••. ..• , • . • • . . . . . . • . . . . • . . . • . . • . . 3,212,366.37 U. S. Bonds ..........•.•....•. .. ......•.... .•..•.•••.•• , . • . • . . • . . . • . . • . . 8,492,850.00 Municlpe.t Warrants . . • • . • . . . . . . . . . . . . . • . . . • . . . . . . . . . . . . . . . . • . . . . . . . • . • . 174,334.62 Due from other Federal Reserve Ba.nk.s---net ...................... , ..... . All other resources ...•....... . ..••....... ....•..•........••. •. ...... •. 751,334.06 U. 8. Gold Notes .•...........• . ........... •. . ... , ....•.....••...•...... 963,000.00 Membe1' Banks Collateral Notes . ...•......• ...••..•...•..• ... .. .•.. ..... 40,000.00 Total r e13011rces ................ . ......... .. ......... . .............. $47,837,864.61 LIABILITIES. Capita.I paid in •• , .••• - •••. , •. , ••.• , ••.••.••••.••.•• - ..•••••. , ••.•.•. .. $ 3,074,000.1)0 Reserve Deposite---net ............................•.......... ........... 42,268,177.03 Federal Reserve Note.s---net ..........•................... .... , .•....• , • 1,736,540.00 Federal Reserve Bank Notes-net ......... .•...•.. ,, ................... , Government Deposlte ...........•........ ........... • , ... ..•..••.•...... 602,182.00 Due to other Federal Reserve Ba.nke-net . ..................... •..... . ... 256,956.58 Tota.I Lie.bllitfea . • . •••...•••...••.••..••••.••..• .. ...•.... . .. ..... $47,837,854.61 MEMORANDUM. F. R. Notea i!nllled to the Be.nk ............ .............................. $21,130,160.00 F. R. Notes in hands of Bank •..•....•.•.. . •.••...•••••.••.•.••• ,... ... .. 148,460.00 F. R. Notes Outstanding ......... ...... ........... ......•........•...... 20,981,700.00 Gold and Lawful Money with Agent ...... ........ ... .................... 19,246,160.00 Net Liability account ot F. R. Notes ...... ............... , ... ,,.......... 1,736,640.00 CLEARINGS. Total Clell.l'lngs for week,, ..... .. , ....... .. ..... . . , ................... .. $41,310,645.86 Tota.I number of ilema handled .. . , .•••..•.••. ,..... .. .......... ..... . . • 67,942
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