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a-------------------- -----------------------..
THE MONTHLY REVIEW
Covering Conditions in the Tenth Federal Reserve District
FEDERAL l{ESERVE BANK OF KANSAS CITY
For the Information oj Member Banks and Business Interests of this District
ASA E. RAMSAY, Chairman Boa,-d Di,-ecto,-1
C. K. BOARDMAN, Aasi1lant Ftde,-al R,11,-r,1 Agent
and Su,-et11ry
and Fede,-al R,se,-r,e Agent
0----------------------,------------------------a
VoL. 6 No. 1
Kansas City, Mo., January 20, 1921
VIDENCES of a trend in the direction of a
speedier and more satisfactory liquidation of
bank loans brought some slight relaxation to
the financial strain at the turn of the year.
Though the improvement to the date of this review
has not been as great (as desired and demand for
money .an"d credit continues strong and rates have
shown no material change, there appears to be a better tone to the general financial, commercial and industrial situation in the Kansas Citv Federal Reserve
District. The reports covering the., first half of January reflect some increase in trade and manufacturing
activity at the principal centers as compared with the
depressed conditions prevailing through the last week
of 1920. But in only a few lines has the percent of
activity reached the high stages maintained in the corresponding half month one year ago. While undoubtedly there is improvement, and a more cheerful view
of the future is in evidence, it is too early in th~ year
to gauge the progress with any degree of accuracy~
E
THIS COPY RELEASED
FOR PU BLI CAT ION
JAN. 27
THE STATISTICAL STORY OF 1920 IN THE KANSAS
CITY FEDERAL RESERVE DISTRICT
1920
1919
Agricultural Production
287,219,875
300,994,000
Wheat, us... . ... . ... . .
546,903,905
372,870,000
Corn, Bus•... . ....••....
234,501,478
182,677,000
Oats, Bus... ... ........ .
38,896,868
17,029,000
Barley, Bus. . . . ........ .
7,767,512 "
9,323,000
Rye, Bus .• • .............
31,817,273
38,410,000
Potatoes, Bus•.•..........
69,625,169
42,843,000
Grain Sorghums, Bus .. .
Apples, Bus. • . ......... .
5,170,500
10,257,000
2,244,500
1,103,000
Peaches, Bus. . . . .......•
554,600
623,000
Pears, Bus............. .
3,242,325
1,878,000
Sugar Beets, Tons ....... .
15,349,815 ·
Tame Hay, Tons . . . ..... .
10,639,000
4,918,250
5,483,000
Wild Hay, Tons ......... .
Flour Manufactured
17,736,669
Total number barrels .....
18,796,613
Grain Marketed, Kansas City
and Omaha
95,660,650
95,217,250
Wheat, Bus.••..... .. ...
31,052,750
38,030,250
Corn, Bus.............. .
21,498,400
Oats, Bus. . . . . ......... .
27,158,500
Rye, Bus............... .
2,888,000 .
2,099,900
Barley, Bus............ .
3,642,000
4,787,700
Live St~1' 1V'!1iet4d• ~ .1Jlllrkets)
FINANCIAL.
6,821,451
•.Catt\ e, JIU?1Dtf •. ; ••. , . , .... .
5,348,825
• ••• ~ ·1· • • • • • •
653 423
716,917
Combined statements as of December 31 of eighty- ••••• ~
~ vt!s, num e · · •-:•• ._,.. · •••
,
9,777,671
'd 1
d
L ~ •• : • •
ogs, number . . . ... ~ ••.. ••. : 8,153,219
k
h
1
b
d
b
t ree se ecte tnem er an s w1 e y scattere over t.-"'1.!•:••• Sheep, number ......... ~••• : ••7,553,473
8,906,561
1
Kansas City Federal Reserve District, showed a tpt.tl . •
?Ior.;as.an,ci Mul~,. 'luznber • •:: 167,784
200,221
of loans aggregating $522,778,000. This w~:.fo.•l MeaC
3,438,170
smallest amount of loans reported by these . eightytedler'11!mlfor ~ ~ ~ · ·•· · · · ·
~~,859
536,521
·
h
1920
b
•
$,..,
~?z::eOQO.
Calves, number . . . . . . . . . .
•'f;.SSJ877
t h ree b an k s d urmg t e year
, emg oo,~u,
••
Hogs num.beo _ ..... , . p .. •
6 'f36 745
8,238,601
3,652,238
below ~he year's high peak of loans a.t the first week~.:: •.:
3;769;170
of Apnl, and $49,395,000 less than the· aggregate of• Oil :iM .Mme1taltJei>nJdttced • • •
129,638,600
their loans reported at the beginning of the year 1920.
Petroleum, Bbls. · · · · · · · ·
166,638,600
27,981,500
·
f h
kl
h
d
l
Coal, Tons . . . . . . . . . . . .. .
37,856,000
A n ana 1ys1s o t e wee y reports s ows a gra ua
Lead Ores, Tons . . . . . . . .
93,562
73,020
435,392
decrease of these member banks' loans since the high
Zinc Ores, Tons . . . . . . ....
551,547
12,-145
point was reached on April 2. The combined stateCalami~e Ores, Tons . . . .
9,786
477,361
ments of December 31 also showed the smallest
G_old, Fn~e Ounces.·······
370,lOl
5,639,516
•
h" h h .
.
Silver, Fme Ounces.......
5,200,000
amount o f d eman d d epos1ts on w 1c t e1r reserve 1s Building (16 cities)
computed, the total being $393,621 ,000, which is $87,Permits Issued . . . . . . . . .
18,952
18,860
:8,0~ 1esTs. thand the. peahk of demand depodsi$ts on Fina!~i!iated Cost ...•..... $
67,411,752 $
65,122,245
_arc 5·
tme eposits, owever, _aggregate . 100,Bank Clearings (27 cities).$21,376,598,430 $19,605,924,752
462,000 on December 31, a gradual mcrease bemg reTransit Items Handled by
corded throughout the year from a total of $87,678,Fed. Res. Bank, Number. .
53,881,602
28,372,834
000 reported January 2, 1920.
Amount .. $13,011,582,140 $ 9,856,767,303
P~t.-: _:;.. :•: •:
•:.•:• •
:~eei,:•!1!1Dlfer:. -:••;iP:i-i.\
The statement of the Federal Reserve Bank of Kansas City as of January 14, 1921, appearing in this review, shows a total of discounts including open market purchases of $110,116,998, which is $5,220,390 less
than the amount shown in the weekly statement as
of January 7, 1921. The report also shows a decrease
, of $9,405,578 in bills rediscounted with other Federal
Reserve Banks. This was accomplished with some
improvement in the reserve position. The ratio of
total reserves to net deposits and Federal Reserve
no tes liabilities combined · was 41.7% on January 14,
while it was 41.5% on January 7. One year previous,
January 16, 1920, the ratio was 41.7%.
(Compiled January· 18)
2
THE MONTHLY REVIEW
BANK CLEARINGS.
MERCANTILE.
The clearing house reports from seven principal
cities in this district indicate an increase in volume
week by week since Christmas time. The total clearings for the seven cities were $256,483,000 for the week
ending December 30, a total of $290,081,000 for the
week ending January 6 and $322,071,000 for the week
ending January 13. Compared with the corresponding period last year there is a decrease of 25.5% for
January 13.
Bank clearings for December were $1,480,694,431
or 19% below the corresponding month a year ago
for twenty-seven cities reporting. The year 1920
ended, however, with bank clearings of the twentyseven cities reporting totaling $21,376,598,430, which
is $1,770,673,678 more than the total clearings for
1919, an increase for 1920 of 9%.
Debits by banks to individual accounts in reserve
cities of this District, which are believed to more
clearly reflect the trend of business, amounted to
$313,026,000 for the week of January S, 1921, as compared with $320,735,000 tor the week of January 7,
1920. The decrease in the total debits for the first
week of this year is 2.4%, but it must be considered
that values of goods and products involved in the
bank transactions here recorded as a whole were considerably below the values one year ago.
DEBITS BY BANKS TO INDIVIDUAL ACCOUNTS
BY CITIES IN THE KANSAS CITY FEDERAL
RESERVE DISTRICT
COLORADO
Jan. 7, 1920
Jan. 5, 1921
Denver .................. $ 52,063,000
$ 52,639,000
Colorado Springs . . . . . . . . .
3,739,000
3,773,000
Pueblo . . . . . . . . . . . . . . . . . . .
7,026,000
6,735,000
While sales for December were the lightest of the
year, wholesale dry goods merchants report that the
total sales for the entire year show a material increase
over the previous year, 1919. In fact one of the largest houses in the district mentions 1920 as the "banner
year" as far as sales are concerned, and a little over
40% increase above sales for 1919. The wholesalers report a fair percent of retailers are meetinopresent conditions by selling their merchandise at
prices based on the replacement cost and such m~rchants have very largely gotten out from under their
high priced goods and are doing business with a margi~ of profit. Jobbers and retailers generally have
fairly large stocks of goods with a possible exception
of a few who began meeting conditions early in the
season.
Reported sales at wholesale in December1 1920 of
millinery, drugs, groceries, furniture and hard~are
show the following percentages of decrease as compared with sales in November, 1920, and in December
1919.
'
December, 1920
compared with
November, 1920
Millinery •..••............. -18.5%
Groceries . . . .............. -16.1 %
Drugs . . . ................. - 6.1 %
Furniture . . . .............. -82.5%
Hardware .•............... -20.8%
December, 1920
compared with
December, 1919
-16.3%
-17.3%
-8.2%
-55.9%
-38.9%
Wholesale merchants report a general apathy
among retailers toward purchases of stocks. Retailers'
stocks are said to be very low for this, time of the
year, but cut prices apparently do not interest them
beyond buying as they need to serve their trade.
KANSAS
Atchison . . . . . . . . . . . . . . . . .
684,000 •• ••• J,,208,000
Re_tailers' reports as a rule show that the year is
Kansas City . . . . . . . . . . . .. .
3ffl1toot>:.: .: ~1"1.12,000 starting off with the volume of sales a little better
Topeka ................ .•• •:•.:1~i:3:ooo•.: •• : .•t,445,~bo.: than ii: December. Dealers in wearing apparel and
12,7~i;QQ~: .~?.me Imes _of dry goods have made noticeable reducMis~tf~ti · · · · · · · · · · · · ·{:•.: · 1:409,ooo
Joplin ............ :.-~:.-~:. .3,ao4J)00
2,477 ,t>oo •••t.t>n~ m prices, many items being priced as much as
Kansas City .•.. : 1 •. ,:.... 7fJ},flll)0i• :•: :aG,~333)00 ~~ -below the high levels of last spring, and a large
St. Joseph . . . . ;,.•.~•:..... 2Z,54!1.t>lo\ /: •:tei,:rn1noo vo~~•(} of merchandise is being sold With the purNEBRASKA
•• ••
• f • • • _.
• . ••
·
Omaha ...... :::-::..... . 58 5~ 3,000
44 635 000 cha~JJg. ~.ower of the people reduce? to some extent.
OKLAHOMA
~ : : :'. : : ••: ••• • ' : ••• :f?Owe1~, goods generally are movmg slowly under
• • ••& •••
• • • " •th
.
Bartlesville . . . .......•-.• : :.
: : ~,2~.,D~Q • : : :• : •.
4',10~<100":
e great1y re d uce d prices.
Muskogee . . . . . . . . . . . . . . . .
8,567,000 .. ••• 8,-i_g,r,cron • : T
Oklahoma City . . . . . . . . . ... 20,9 51 ,000
he department store :eports for the month of De25 ,258 ,000
Tulsa . . . . . . . . . . . . . . . . . . . . 28,447,000
31509 ooo cember make the followmg showing of averages for
WYOMING
'
'
stores reporting:
·
::•l
2,579,000
2,997,000
Totals ................ $320,735,000
$313,026,000
Cheyenne . . . . . . . . . . . . . . . .
CONDITION OF 83 MEMBER BANKS AS OF FIRST AND
LAST WEEKS OF 1920
Jan.2,1920 Dec.31,1920
Total U. S. Securities ............ $ 69,500,000 $ 51,662,000
Loans secured by U. S. War obligations (Liberty bonds, Victory
22,027,000
notes, Cert. of Indebtedness. . . . 20,800,000
Loans secured by stocks and bonds
other than U. S. Securities..... 75,216,000
80,008,000
All other loans and investments .. 476,157,000
420,743,000
Reserve Balance with F. R. Bank. . 43,128,000
45,570,000
Net demand deposits on which reserve is computed. . . . . . . . . . . . . . 462,219,000
393,621,000
Time deposits . • . . . . . . . . . . . . . . . . 87,678,000
100,462,000
Percentage of net sales for December, 1920, compared with net sales during the same month
In 1919 . . . .............................. Dec.
Percentage of net sales from July, 1920, to December 31, 1920, compared with net sales for the
same period in 1919 ....................... Inc.
Percentage of stocks at close of December, 1920,
compared with stocks at close of the same
month in 1919 ............................ Inc.
Percentage of stocks at close of December, 1920,
compared with stocks -at close of November,
1920 ..................... . .............. Dec.
Percentage of average stocks (selling price) at close
of each month this season, commencing with
July 1, 1920, to average monthly net sales (selling price) during the same period . . ............
Percentage of outstanding orders (cost) at close of
pecember, 1920, to total purchases (cost) durmg the calendar year. . . . . . . . . . . . . . . . . . . . . . . . .
4.98%
0. 7%
9.42%
23.78%
465.5%
3.0%
THE MONTHLY REVIEW
AGRICULTURE.
The ground was bare of snow over a large wheat
growing area during the greater part of December
and in the forepart of January, but with mild and
comparatively uniform temperatures prevailing very
little damage is reported from alternate freezing and
thawing. Soil moisture was insufficient in many sections, particularly on the western Great Plains, and
in some Rocky Mountain sections winter grains were
reported suffering from lack of moisture. Snow fell
on January 12-13 over a very large portion of the
Missouri Valley and spread over a considerable portion of the Great Plains. Snow covered the lower
elevations in Colorado and New Mexico and in western Wyoming.
--. Wheat generally is reported to have a fine green
,J color and excellent condition, furnishing much good
n pasturage. The prevalence of chinch bugs last year in
J some sections of the District, particularly in Missouri,
.... has led to organized movements to exterminate the
µ bugs during the winter months by burning the wast.... ~ age along fence rows and about the farms which har~ ~ bor the bugs through winter. Bankers and business
men are lending aid and encouragement to the farmers in many communities to stamp out these pests.
~ and prevent crop and financial losses in the coming
~ year.
.
.~
On the whole, the winter thus far is reported as
fCj generally favorable for outdoor farm work and in
_ some parts of the district good progress has been
~ made in plowing for spring crops. Some corn is still
Q) in the fields in Nebraska, according to the report from
EJ that state. The Oklahoma report for the week endv ing January 4, said 20% or more of the cotton crop,
all very low grade, was still in the fields.
~
Grain Movements.-An improved demand for wheat
and more liberal supplies were outstanding features
of the opening week of the new year at the grain cen"-"' ters of this district. Receipts of wheat in the first
N\ fifteen days were around 20% larger than for the cor-.. responding period one year ago. Receipts of corn also
exceeded last year's receipts for the same period by
about 30%, but oats marketed was 20% less in volume.
Flour Milling.-The beginning of the year brought
~ a marked improvement in the milling situation. Al;:_ though the volume of sales of flour was hardly up to
expectations they were larger than in several preced' ing weeks. Bakers were the more active buyers while
C::' jobbers were slow in taking contracts.
The Kansas City mills in the first week of the year
were operated at 67% of capacity, 58% through December and 81 % in the first week of 1920. Interior
t~
t:
3
RECEIPTS AND SHIPMENTS OF GRAIN (BUSHELS) AT
AND FROM KANSAS CITY AND OMAHA
FOR DECEMBER, 1920, AND 1919
Receipts
Omaha
Kansas City
Dec., 1920 Dec., 1919 Dec.,. 1920 Dec., 1919
1,773,600 1,399,200
Wheat .•....•. 6,667,650
7,653,150
1,016,400 2,345,000
Corn . . . . . . . . . . 931,250
1,435,000
666,000
578,000
Oats . • . . • . . . . • 275,400
455,600
170,500
129,800
Rye • • •. . . • • . • • 82,500
53,900
140,400
91,800
Barley . • . . • . • • 175,500
321,000
Kaffir • • • • . . . • 654,500
233,200
Shipments
1,846,800 2,196,000
Wheat . . ...... 6,033,150
6,575,500
421,400 1,896,400
Corn . • . • . . . . • • 383,750
573,750
486,000
592,000
Oats . • . • . • . . . . 268,500
516,000
239,800
80,300
Rye • . . . • • . . . . . 135,300
34,100
109,800
Barley . . • • . . • . 156,000
94,900
189,000
Kaffir • • . • • • . • 238,000
41,000
mills increased their operations over the last week of
December but were still operating below 50% of
capacity.
The year's production at Kansas City, Omaha and
88 interior mills in the Southwestern territory was
17,736,659 barrels for mills reporting, which compares
with 18,796,613 barrels reported in 1919.
Shipments of flour from Kansas City in December
were 208,650 barrels. For the same month in 1919
they were 361,075. Receipts for the month were 39,000 barrels and for the month a year ago 90,025 barrels.
LIVE STOCK.
The condition of live stock in this district is generally good, due to the mild winter and an abundance
of feed. With the exception of a few cases of hog
cholera in spots very little disease is reported. Considerable snow in some sections of Wyoming has
necessitated quite heavy feeding. In New Mexico,
while the ranges are good, some feeding is necessarz
to carry the stock through the winter.
The movement of live stock to the six markets of
this district continues comparatively light as to cattle
and calves but in fairly good supply as to hogs. The
receipts of cattle for December were 49.3% less than
for the previous month of November, anct 49% less
than in December, 1919. Receipts of calves for the
month fell off in about the same proportion. There
was an increase of .3% in the receipts of hogs over
those of N oyember, but there was a loss of 35.4% as
compared with receipts for the last month of 1919.
Fewer sheep by 45% came to the markets in December than were marketed in the corresponding month
of the previous year. There was a big slump in receipts of horses and mules in December as compared
AVERAGE CASH SALES OF WHEAT, CORN AND OATS AT KANSAS CITY ON DATES MENTIONED
IN CENTS PER BUSHEL
Jan.18
Dec. 24
Dec. 31
Jan.7
Dec.17
Wheat
177
176
177½
170½
No. 2 Dark Hard Winter ................•.•...• 175
175½
175
173½
No.1 Hard Winter •...•....•................... 1 ~
191
193½
193
No. 1 Red ........•...•.........•.....•.•.•••... .__..l
·v
Corn
, L-\ E3~ R
62
65½
58½
No. 3 White................................. . .
65 oF'
64 ,
68
63
59
No. 3 Yellow............................... • • •
«c '
9.\: •• )
1
62
58
63½
. No. 3 Mixed •...•.•••.•.•••••..••••••.•.•.• '·
~ ½ •• ~ _ ... \~½
fctr
OatsNo. 2 Whit~: • • • . . • . . . . . . . . . • • . . • .. • • • • . . . . • .. .
7t
0\9 p~ · -: i..l!
r.,
9
No, ........................
;,
50
48½
44½
THE MONTHLY REVIEW
4
with the previous month and also the same month in
1919. The total number of cars of live stock received
in December was 21,704 which compares with 37,694
cars in December, 1919. The year's record of receipts
of live stock in the six markets shows reductions from
the previous year's record of 21.5% in cattle, 8.870
in calves, 16.6% in hogs, 15.2% in sheep, 16.2% in
horses and mules and 17.1 % in the number of cars
required to bring the animals to market.
The following shows the receipts cf live ~tock at
the six markets for December, with totals for N ovember and December, 1919:
Dec., 1920
Cattle . . .......... 304,973
Calves . . . . . ...... 29,748
Hogs . • . .......... 603,060
Sheep •.......... .4121374
Horses and Mules.. 1,830
Cars ............. 21,704
Nov., 1920
602,398
71,901
601,426
749,633
3,172
33,348
Dec., 1919
598,277
46,061
934,253
753,590
18,418
37,694
The last two weeks of 1920 and the first two weeks
of 1921 found conditions in the live stock markets
irregular. A narrowing of the range of cattle prices
was noted in the heavier call for the plain and medium offerings and the shorter call for the choice and
prime lots. Country call for thin cattle was fairly
good and stockers and feeders were generally strong.
Meat packing operations in December and for the
year, as measured by purchases of animals for slaughter, at the six markets of this district were:
Dec., 1920
Cattle . . ..... 285,147
Calves ....... 44,093
Hogs .•...... 781,293
Sheep ...... .475,877
Dec., 1919
443,598
60,817
1,124,016
553,477
Year 1920
2,824,859
466,877
6,736,745
3,769,170
Year 1919
3,438,170
536,521
8,238,601
3,652,238
PETROLEUM.
Reductions of 30% to 50% in purchases of crude
oil by refiners within the past thirty days, together
with the seasonal changes, have resulted in a ver_)~
material decrease in production in the fields of Kansas and Oklahoma. Preliminary estimates of the aver-
age number of barrels produced daily in the last two
weeks of December and the first two weeks of January, which follow, indicate the extent of reduced
output in the two principal oil states of this district:
Oklahoma The Two States
Bbls. Daily
Bbls. Daily
288,000
386,000
260,000
350,000
249,000
334,000
262,000
347,000
Kansas
Week Ending
Bbls. Daily
December 24 . . . . . . . . 98,000
December 31 . . . . . . . • 90,000
January 7 • . . . . . . . . • 85,000
January 14 • . . . . . . . . 85,000
The decreased production shown in the foregoing
indicates that the total output from the wells of Kansas and Oklahoma in January will, for the first time
in more than a year, fall below 11,000,000 barrels of
42 gallons each. The output of wells in Wyoming
and Colorado is also ~lightly reduced from the steady
run of the last six months, although Wyoming made
a big spurt in new production in December through
its development ' operations.
Immediate cause of the reduction in purchases by
refiners was that pipeline facilities to the available
markets were inadequate to handle the amount of oil
offered. The result is a considerable local congestion,
to which is added the inconvenience of insufficient
steel storage. The slowing down of refining activi- '
ties, while due to the general depressed trade in the
petroleum products, is regarded as merely temporary
since, as ~ general proposition, consumption in the
United States still exceeds domestic production. Some
of the refiners and large purchasers of crude oil are
increasing their capacity for transportation of oil to
market centers.
In development operations fewer wells were completed in December in Oklahoma and Kansas, while
Wyoming showed an increase in the number of new
wells brought in, as compared with November. In
point of new production, Oklahoma's December total
was 14,107 barrels daily below the November record,
but this was offset by a gain of 6,175 barrels daily
RECEIPTS OF LIVE STOCK AT SIX MARKETS
OF THE KANSAS CITY FEDERAL RESERVE DISTRICT IN 1920
Cattle
Kansas City .......................... . ......... . ... 2,108,092
Omaha ...........•......•.........•................ 1,524,121
St. Joseph . • . ..................................... , 552,969
Denver. . . . . . . . . . • . . . • . . . . . • . . . . . . . . . . . . . . . . . . . . . . . . 570,360
Oklahoma City. . . . . • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 351,170
Wichita. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • . . . 242,113
Calves
390,074
78,678
89,930
46,205
48,536
Hogs
2,466,419
2,708,482
1,913,755
341,240
340,862
382,461
Sheep Horses & Mules Cars
1,687,017
71,797
124,764
2,890,748
18,751
110,497
842,639
29,768
51,861
2,078,688
17,591
33,017
14,812
5,847
15,863
39,569
24,030
12,145
Total, 1920 •...•.•.•••••••••.... . ....•..... . ........ .5,348,825
Total, 1919 ......................................... 6,821,451
653,423
716,917
8,153,219
t,777,671
7,553,473
8,906,561
RANGE OF PRICES OF CERTAIN GRADES OF LIVE STOCK
AT KANSAS CITY AT DATES MENTIONED
Beef Steers
Good-Choice
December 20 .................. . ..... . . . .............$9.50@13.25
December 27 ..........•...•.............•.......... 9.75@13.25
January 4.. . ................... . . . ............... 9.35@12.50
January 11 ............•.............. . ............. 9.15@11.75
January 18. . . . . . . . . • . . . . . . . . . . . . • . . . . . . . . . . . . . . . . . . 8.00 ® 11.00
"[I!
Butcher Cattle Feeder Steers
Com.-Choice · Com.-Choice
$4.00@ 9.80
$6.50@9.90
4.25@10.25
6.50 @9.90
4.15@ 9.65
6.50@9.50
-4.50@ 9.25
6.85@9.40
4.00@ 8.00
6.00@9.50
167,784
200,221
348,147
420,016
..... - - .
Stocker Cattle
Hogs
Com.-Choice Bulk Sales
$3.75@8.25
$8.60@ 8.85
3.75@8.25
9.65 @10.00
3.75@8.00
9.00@ 9.25
· 4.00@8.15
8.60@ -9.00
4.00@8.25 . 9.60@ 9.80
THE MONTHLY
new production in Kansas and 8,855 barrels daily new
production in Wyoming.
The number of rigs and wells drilling at the end of
December showed a gain in one month of 70 in Kansas and Wyoming and a loss of 4 in Oklahoma, indicating a larger degree of activity in field development
than is usual for the winter season.
The following
shows the development operations in December compared with the November record:
Wells
Completed
Oklahoma . . . . . . . . 732
Kansas . . . . . . . . . . 280
Wyoming . . . . . . . .
50
Barrels Daily Rigs and Wells
Drilling
New Prod'n.
1,947
59,080
480
18,745
577
11,270
December total • . . 1,062
November total ... 1,185
89,095
88,172
3,004
2,938
Difference •...... -123
923
66
Average daily production of crude oil in the four
producing states of this district in 1920 was 455,296
barrels, compared with an average daily production
of 355,136 barrels in 1919. The increase for 1920 is
100,160 barrels daily, or 28.2%. It brings the total
production of crude oil for the year to approximately
166,638,600 barrels, which is 37,000,000 barrels more
than 1919 output and 22,000,000 barrels more than
was produced in 1918.
COAL.
Under improved operating conditions, a minimum
of interruptions on account of strikes and better transportation facilities, production of soft coal at the
mines of this district has been fairly active this season
in spite of general business and industrial inactivity
and reduced purchases forJ domestic uses occasioned
by the mild winter weather late in December and
early in January. The reports show there was the
usual slowing down of m"ning activity during the
holidays, but operations through the first two weeks
of January were but slightly, if any, below the record
for the first three weeks of December, which showed
the average percent of full time output as follows:
Colorado 84.9%, Kansas 82.4%, Missouri 84.2%,
Oklahoma 80.9%, with 83.1 o/o as the average of full
time operation in the district for the three weeks period. The comparatively small loss of operation in
December was attributed to the causes which follow:
Colo.
Transportation Disability. 9.4%
Labor Shortage . . . . . . . . .2%
Strikes . . . . . . . . . . . . . . . .
Mine Disability . . . ..... 1.5%
No Market ............. 3.4%
Kans.
3.2%
4.0%
.2%
10.1 o/o
.7%
Mo. Okla. Av'ge
2.4% 8.7% 6.9%
4.8% 3.2% 3.0%
1.6%
.2% 1.0%
4.4%
.8% 4.2%
1. o/o 1.4% 1.8%
In point of soft coal production, 1920 was one of
the best years of history for this part of the United
States. The total output for the Tenth Federal Reserve District was approximately 37,856,000 net tons
• in 1920, which compare with 27,981,500 tons produced
in 1919 according to close estimates which are based
on railroad shipments reported. The increased tonnage over 1919 amounted to 35%. The production
for the year represented 14.9% of the entire production in the country.
Bituminous coal produced in the United States in
1920 was approximately 556,516,000 net tons and
s
REVIEW
458,0631()()() tons in 1919, •with 579,386,000 tons produced m 1918. The 1920 figures would indicate that
coal production is a little above normal demands of
the country. In 1919 there was an approximate shortage of coal and consumers in that year used up the
surplus of 30,000,000 tons produced in 1918.
The beginning of the year founc! the coal market:
of the country somewhat stagnant and dealers de~and_s conside_rably off, due to the slackened consumption m the mild weather. Prices are a shade easier
than one month ago, but up to the present time there
have been no material changes in wages. Operators
throughout the southwestern district which includes
~issouri, Kansas and Oklahoma are generally reportmg around 100% efficiency in car service.
ZINC AND LEAD.,
. Pr~vious yea~ly records for ore production in the
district embracmg Missouri, Kansas and Oklahoma
were sha_ttered in 1920, according to the reports from
the J oplm metal market. The following is a summary of production of ores and their value for 1920
with the totals for 1919 for comparison:
Tons
1920
1919
Zinc Blende ..... 551,547 435,392
Calamine . . . . . . . . 9,786
12,445
Lead . . . . . . . . . . . 93,562
73,070
Value
1920
1919
$25,413,826 $18,997,521
347,559
352,200
8,588,620
4,922,961
Total . . . ........ 654,895
$34,350,005
520,907
$24,272,682
. T~e increase in ~roduction indicated in the foregomg 1s phenomenal m the face of economic conditions
w~ich have prevailed during the year. The source of
this production was principally the Oklahoma field
extending from Commerce, Oklahoma, and northeast
to the ~ansas state line. The other big source of
produc~1on was the State of Kansas which produced
a considerable tonnage along the extension of the
Oklahoma field into Kansas and also the extension
of the Waco district from the Missouri side into Kansas. Missouri stood third in the list of production
the source being the new camp at Waco small scat~
tered pr?duction fr~m the older camps ~f Oronogo,
Webb C1ty,_Prospent:>:, Joplin, Duenweg and Granby,
and a few isolated mmes stretching as far east as
Aurora and Springfield. The calamine concentrates
came principally from the old Granby camp with a few
small lots reported from Aurora and Duenweg. Oklahoma also led in the production of lead concentrates,
not ~:mly on acount of the larger number of mines operatmg but due to the fact that these mines carry a
heavier lead content as a by-product than do the
mines of Missouri and Kansas.
The large production of blende ores averaged only
~46.07 per ton for the year, and while this shows an
mcrease. of $2.54 over the average for the previous
yea:, this mcrease came through the heavy shipments
durmg the first four months when prices had an upward. trend and ranged from $48 to $56 per ton. The
remamder of the year shows a considerable decline
indicating that the production of the last eight month~
was made at cost and below cost. The last two
months of the year showed the average price to be
$36.48 for November and $31.51 for December, the
6
THE MONTHLY
latter being the lowest price that has prevailed in the
zinc ore market for many years. On the other hand
calamine ores were extremely scarce, showing a decrease of 2,659 tons from the previous year, which at
that time was far from being equal to the demand.
The average price for calamine was only $10.56 below
that paid for blende when the parity is $20. The average price paid was $35.51 per ton compared with
$28.30 per ton for the previous year, or an increase
of $7.21 per ton. The highest market for lead concentrate was reached during 1920, ores going as high
as $115 per ton in August and as high as $110 in April
to August. For several months the average held from
$90 to $110, with the average for the year at $91.79
or $24.42 higher than that of the previous year's average. These high prices had much to do with the large
production of both lead and zinc concentrates, the
lead ore being a by-product of the zinc ore mines and
being such a high price naturally led to the largest
operations being maintained at that class of properties. This served as a factor in keeping many mines
from standing idle. With the decline of lead from
the high peak in August the effect was noted as the
mines began to close down largely. By the end of
the year the price of lead concentrates had droppe~
to as low as $45, the lowest price prevailing for several years. However, the price was maintained during a major portion of the year and it was only in the
last two months when a severe drop took place.
Another cause for the large production in the face
of declining prices in ores was the short time so
many of the lease holds remained in force. A large
number of leases expire in 1922 and 1923. Singularly
enough, there were many interferences with production. These came largely from the volume of shutdowns during the year. The shortage of cars for shipment and railroad switchmen's strike and coal strikes
have interfered with the metal mining industry. There
was an acute shortage of labor during the year especially with the class of labor employed as shovelers.
The new freight rates, which were announced in
August, affected the movement of supplies into the
di trict as well as the distribution of products of metal
mines. The new increased freight rates also affected
every item on the cost sheet.
GOLD AND SIL VER.
Continued decrease in the market prices of lead and
zinc have caused several of the larger metal producers
in Colorado, during the past two months, to shut
down or materially restrict their activities. The Cripple Creek gold mines, however, have without exception passed their dividends of late. The only advantageous feature in the shutdowns is that they have
made it possible. for the companies which are operating to obtain, for the first time in several years, practically all the men they want.
_
It is too early to obtain the official Government reports on the output of the metal mines of Colorado
for the year 1920, but unofficial estimates would indicate a very large reduction in the output of minerals
as compared with 1919. The unofficial estimates at
hand place the year's output of gold at approximately
370,101 fine ounces valued at $7,659,000, which compared with 477,361 fine ounces of gold valued at $9,-
REVIEW
876,927 produced in 1919, this year's decrease being
22.4%. The silver output in 1920 in Colorado was
estimated, also unofficially, at 5,200,000 fine ounces,
which is 439,516 ounces less than the 1919 output. At
the average price for the year of $1.09 per ounce the
total value of silver produced in 1920 is $5,668,000, or
$591,863 less than the value of silver produced in 1919.
The value of all metals, rare minerals, chemicals and
other mining products from Colorado in 1920 is t>stimated at $29,833,499, compared with $31,669,080 as
the value for 1919.
SALT.
Production of salt, according to the experiences of
Kansas operators, shows a net decline in tonnage of
about 15% for the year 1920 as compared with 1919.
At the same time the net receipts for 1920 shipments
show an increase of about 9% over the receipts from
the shipments in the preceding_year. This was due
to advances on materials used in preparation of salt.
Although there was a slump in the last three months
of the year, operators see a slight picking up of demand with the opening of the new season.
BUILDING.
The showing made by the December reports on
building activity in cities of this district was somewhat better than was anticipated, in view of the slump
which started at midsummer and continued through
the remainder of the year. A total of 751 permits
were issued in seventeen cities in that month for
buildings estimated to cost $3,004,814, which is 35.8%
under the estimated cost of buildings permitted · in
the last month of 1919. For the year the total of permits was 18,952, and the estimated value $67,411,752.
This compares with the 1919 record of 18,860 permits
and $65,122,245 estimated value, this year's increase
being 3.5%.
While the lumber and material trade is experiencing the usual winter dullness, it is noted that there
was more buying in the second week in January than
in any like period for four months.
Prices, after
reaching lower levels, have remained about stationary
during the last thirty days. In a number of cities
"Build It Now" movements are being launched in efforts to overcome the housing shortage. ,
BUSINESS FAILURES.
Dun's reported for December a total of 86 failures
in the Kansas City Federal Reserve I District, with
liabilities totaling $4,748,658. This was the largest
month's failures in the last year. It compares with
23 failures antl $218,959 of liabilities in the month of
December, 1919. The record of failures in the Kansas City Federal Reserve District for the years 1920
and 1919 follows:
Number Failures
1920 . • . . . • . • . . . . . . . . . . . . . •
476
1919 . . . . . . . . . . . . . . . . . . . . . .
261
Liabilities
$10,190,370
3,987,855
Failures in the United States in 1920 numbered
8,595 and the liabilities were $416,900,000, with $269,500,000 as the actual assets. In the number of failures the 1920 record was the second lowest since 1882,
showing forty-four one-hundredths of 1 per cent of
the number engaged in business having failed. In point
of liabilities, however, 1920 exceeded all previous records.
THE MONTHLY REVIEW
7
PRODUClION OF CRUDE PETROLEUM IN 1920. BARRELS OF 42 GALLONS.
(U. S. Geological Su"ey Reports 11 Months, December Estimated)
Oklahoma
7,958,000
7,933,000
8,689,000
8,368,000
8,805,000
9,049,000
9,328,000
9,373,000
9,093,000
9,437,000
9,031,000
9,006,600
Kansas
3,338,000
3,545,000
4,068,000
3,939,000
3,804,000
3,617,000
3,621,000
3,716,000
3,616,000
3,601,000
3,678,000
3,084,600
Wyoming
1,171,000
1,167,000
1,316,000
1,303,000
1,368,000
1,625,000
1,586,000
1,624,000
1,573,000
1,676,000
1,340,000
1,385,000
Colorado
9,600
8,000
9,000
8,000
11,000
10,000
9,000
10,000
9,000
9,000
8,000
8,000
Total, 1920 .........•••............................106,069,600
43,426,500
17,034,fJ00
108,600
January............................................
February. ~. .. . . • • . • . . . . . • • • . .. • . • • • • . . • • • • . . • • . • • • •
March. . . . . . . . . . • . . • . . . . . . . . . . . . . . . • • . . . . . . . . . • . . . • .
April...............................................
May. . . . . . . . . . . . . . . . . . . • . . . . . . • . . . . . . . . . . . . . . . . . . . .
June. . . . • . • . • • • . • . . . • . . • . . • . • . . . • . • • • . . . • . . . . • . • • • •
July................................................
August. . . . • . . . • • • . . . . . • . • • . • . . • • . . . . . • . . . . • . . . • . . . .
September. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • . . . . . . .
October ........•••.•..•••..••..••••..••••.•••••••...
November..........................................
December (est.)............ .. .......................
Total District
12,476,600
12,653,000
14,082,000
13,618,000
13,988,000
14,201,000
14,644,000
14,623,000
14,290,000
14,723,000
13,957,000
13,483,000
166,638,600
BUILDING PERMITS ISSUED IN DECEMBER AND THE YEAR IN SIXTEEN_CITIES
December
Year
1919
1920
1919
1920
No.
Pct.
No.
No.
No.
Permits
Value
Value
Permits
Kansas City, Mo .....•..• 173
$1,084,250
172
$ 689,150
Omaha, N eh. • . . . . . . . . . . 40
186,016
33
749,575
Tulsa, Okla. . . . . . . . . . • . . 98
290,341
921,165
180
Denver, Colo ............ 134
680,900
480,550
157
Oklahoma City, Okla...•• 76
219,441
446,300
146
Wichita, Kans. . • . . . . . . . 46
95,400
543,450
59
Okmulgee, Okla. . . . . . . . . 25
98,000
194,050
59
Lincoln, N eh. . . . . . . . . . .. 11
12,325
60,600
16
St. Joseph, Mo.. . . . . . . .. . 26
17,790
32,500
19
Topeka, Kans. . . . . . . . . • . 22
184,910
7,895
11
Kansas City, Kans ....... 18
38,650
75,800
13
Cheyenne, Wyo. . . . . . . . . . 11
397,883
27,500
7
31,960
Muskogee, Okla ..•....•. 10
58,659
18
5,347
23,418
20
Colorado Springs, Colo.. . . 27
29,832
20,940
11
Pueblo, Colo. . . . . . . . . . . . 36
32,000
Leavenworth, Kans . . . . . 4
Total .................. 751
Kansas City, Mo....... $
Omaha, Neb..........
Denver, Colo. .
Oklahoma City, Okla ...
Tulsa, Okla. . . . .......
St. Joseph, Mo.........
Wichita, Kans. . . . ....
Kansas City, Kans .....
Muskogee, Okla. . . . ...
Lincoln, Neb .........
Topeka, Kans. . . . .....
Cheyenne, Wyo. . . . ...
Hutchinson, Kans ..
Joplin, Mo ............
Colorado Springs, Colo ..
Independence, Kans. . .
Pueblo, Colo. . . . ......
McAlester, Okla. . . . . .
Hastings, Neb. . . . ....
Atchison, Kans .......
Parsons, Kans. . . . ....
Fremont, Neb ...
Guthrie, Okla. . . . .....
Miami, Okla. . . . ......
Lawrence, Kans. . .
Grand Junction, Colo ...
Emporia, Kans .......
$3,004,814
$4,681,882
866
Change
-36.4
-76.2
-68.6
41.7
-50.9
-82.4
-49.4
-79.6
-45.2
1608.8
-49.0
1346.9
88.7
887.9
47.2
Permits
Value
3,688
$13,760,295
1,361
13,461,970
2,429
9,682,487
3,390
7,549,920
6,044,741
1,675
3,804,177·
1,774
2,342,975
688
2,110,545
536
1,942,229
592
518
1,657,794
1,280,285
460
311
1,159,696
226
898,454
712
773,916
739,269
610
37
203,000
----
-35.8 18,952
Pct.
Value Change
Permits
4,178
$13,224,050
4.0
1,832
8,602,907
56.5
2,176
9,869,448 - 1.9
3,036
6,779,880
11.4
1,677
8,983,179 -32.7
1,241
4,849,921 -21.5
812
3,331,925 -29.7
2,052,452
674
2.8
557
1,091,720
77.9
488
1,432 295
15.9
494
1,637,237 -21.7
172
466,990
148.4
209
794,051
13.2
401
319,145
142.5
562
676,300
9.3
38
87,950
130.8
$67,411,752 18,860
$65,122,245
BANK CLEARINGS FOR DECEMBER AND THE YEAR
AT CITIES OF THE KANSAS CITY FEDERAL RESERVE DISTRICT
Twelve Months
December
1919
% Change
1920
1919
1920
$11,222,743,324
$11,615,142,429
-30.5
$1,070,862,537
744,510,135
3,057,208,535
3,020,338,414
-25.0
240,887,508
180,572,180
1,630,360,805
1,980,636,946
1.9
161,776,891
164,854,578
640.673,439
1,037,717,950
80.7
62,889,837
113,836,137
517,925,738
10.9
669,690,615
47,760,486
53,005,606
888,467,944
830,318,768
-35.1
75,926,804
49,286,011
633,608,054
719,765,924
-27.7
66,465,244
47,314,280
37,876,798
242,791,312
487.2
3,589,396
21,076,968
176,112,186
241,241,938
4.1
19,482,415
20,292,570
274,509,348
286,469,930
-24.2
22,886,475
17,341,405
177,395,390
174,180,427
-21.6
16,542,139
12,957,148
.............
90,962,144
11.9
7,798,613
8,827,126
.............
. ... . .
187.2
2,769,000
8,152,935
82,597,000
93,265,068
-19.4
8,213,000
6,617,000
50,724,268
62,377,845
-11.2
4,692,268
4,164,845
............
.. ..
... . . . . ....
4,146,873
38,962,011
52,079,069
13.4
3,581,118
4,061,462
.............
38,887,800
... .. . . .
3,116,000
34,205,327
43,976,559
-12.2
2,967,215
2,662,834
36,852,881
45,798,405
-31.2
3,636,955
2,501,254
21,675,479
23,739,925
-11.8
2,232,840
1,968,825
41,234,074
39,746,047
-38.9
3,206,152
1,948,384
20,664,042
31,401,898
-28.9
2,572,203
1,829,603
.............
............
1,810,117
22,128,609
22,986,514
-15.3
2,090,626
1,771,541
.
13,082,503
..... .. .. .. .
1,104,686
.............
.. .. .. .. . . .. .
23.9
777,840
964,438
.. . ..
..
.. .. .. ...
..
.
..
*-19.7
Totals ............... $1,480,694,431
$1,832,607,011
*Percentage computed on cities reporting for December of both years.
**Percentage computed on cities reporting for 12 months of both years.
.. .. .... ·····
$21,376,598,430
3.5
%Change
3.5
-1.2
21.5
61.9
29.3
-6.5
13.6
541.2
36.9
4.4
-1.8
12.9
22.9
33.7
28.8
24.3
9.5
3.6
61.9
............
3.9
$19,605,924,752
**9.0
,;
.....J11-
THE MONTHLY REVIEW
8
Combined Balance Sheet
FEDERAL RESERVE J3ANK OF KANSAS CITY
January 14, 1921
RESOURCES
Gold Redemption Fund F. R.
Notes .................................... $
Gold with F. R. Agent............
Gold Settlement Fund ............
Gold with Foreign Agents......
Gold Certificates and Coin......
Legal Tender Notes, Silver
Certificates, etc. ................
National Bank Notes ..............
Bank Notes of Other Fed.
Res. Banks ......................... .
F. R. Notes of Other Fed.
Res. Banks ......................... .
U nassorted Currency ..............
Transit Items ........................... .
Checks and Other Cash Items
Exchanges
for
Clearing
House ................................... .
Secured
by
Government
Obligations:
M e m b e r
Banks'
Collateral Notes ......
All Others ..........................
Otherwise Secured and Unsecured:
M e m b ·e r
Banks'
Collateral Notes ........
All Others ..........................
Bills Purchased in Open
Market ................................
U. S. Bonds Owned....................
U. S. Certificates of Indebtedness ......................................
Nickels and Cents......................
6% Redemption Fund Fed.
Res. Bank Notes ................
Bank Premises ..........................
All Other Resources ..................
Total Reesources
LIABILITIES
4,865,834.75
40,394,740.00
23,901,343.10
158,400.00
3,628,557.95
2,348,589.20
460,450.00
$ 75,297,465.00
2,600.00
541,500.00
4,363,718.00
47,500,584.22
223,423.02
231,453.91
53,323,729.15
Federal Reserve Notes in
Actual Circulation ............$106,911,875.00
Fed. Reserve Bank Notes in
Actual Circulation ............ 13,807,000.00 $120,718,875.00
U. S. Treasurer General Account ................................... . 1,14 7,968.55
Members, Reserve Account... . 78,608,680.30
Other Deposits ..........................
859,562.93
All Other Transit Items.......... 46,036,840.89
126,653,052.67
Capital Paid-in ...............,.......... 4,456,850.00
Surplus Fund ........................... . 9,158,814.24
Gross Earnings ....$322,511.20
Less Current Expense ................ 62,426.86
260,084.34
13,875,748.68
All Other Liabilities ............... .
1,627,318.31
Total Liabilities..................
Contingent Liability as Endorser on Bills Rediscounted with Other Federal Reserve Banks............
28,482,939.00
6,667,932.39
13,576,600.61
RESERVES
Ratio of Total Reserves to Net Deposit and Note Liability
Combined, 41.7%
Gold Reserve Against Fed. Res. Notes After Setting Aside
35% Against Net Deposit Liability, 46.4%
5,000.00
73,458,122.72
1,503,004.73
8,867,850.00
12,820,500.00
$262,874,994.56
131,805,348.84
82,646.47
915,590.00
1,282,278.57
167,936.53
$262,874,_994.56
-
@FedFRASER