Full text of Economic Review (Federal Reserve Bank of Kansas City) : July 1, 1927, Vol. 12, No. 7

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THE MONTHLY REVIEW
Of Agricultural, Industrial, Trade and Financial
Conditions in the Tenth Federal Reserve District

FEDERAL

RESERVE

BANK

OF

KANSAS

CI TY

M. L. McCLURE, Chairman and Federal Reserve Agent
A. M. McADAMS, Assistant Federal Reserve Agent and Secretary

Vol.

12

KANSAS C1TY.1

TATISTICAL reports for May revealed a lack of uniformity in seasonal trends of activity in various branches of
trade and industry in the Tenth Federal Reserve District.
Some branches were affected more adversely than others by continuance of abnormally cool weather, declines in prices of products, and other deterrents. However, the volume of business
evidenced by payments by check, while not materially different
from that for April, was substantially larger than in May
of last year.
Wholesale trade in dollar value of goods sold in six reporting
lines was at about the level for the preceding month and the
corresponding month last year, while retail trade at department
stores declined 10.8 per cent from April and was 2.7 per cent
smaller than in May a year ago. Sales of lumber at retail yards
· city, town and country increased less than 1 per cent during
he month but were much smaller than in the previous May.
Implement dealers did a heavy business in sales of harvest
machinery, but in sections where the wheat crop was short sales
were disappointing. The outstanding feature of the trade situation was the heavy receipts of livestock and grain, the month's
, marketings of cattle, hogs, wheat and corn establishing new
high records for the month of May in recent years.
Reports on production in leading industries showed substantial increases in the output of meat and flour, with the month's
totals also the highest of record for May in recent years. The
petroleum industry set up another new peak mark in daily average and gross ,output of crude oiJ, although the first two weekly
reports in June showed efforts to curtail production were beginning to show results. The tonnage of soft coal mined increased slightly over April, but was 28 per cent smaller than in
May a year ago. Continued low prices caused further decline
in production of zinc and lead ores in the Missouri, Kansas, and
Oklahoma district, and shipments were the smallest of the year.
Metal mining in the Rocky Mountain regions was also affected
by low prices, actual production showing a decline, though operators were retaining their forces of employees by continuing
development work.
The Government and State crop reports, based on the condition of June 1, estimated this year's production of winter wheat
in this district at 229,333,000 bushels, 47,576,000 bushels less
than the May 1 estimate, 54,394,000 bushels less than the harvested crop of 1926, but 79,000,000 bushels greater than the
harvested crop of 1925. Since this estimate was made, however, beneficial rains have fallen over the greater part of the
.r,heat area, and late June reports indicated improvement of
.,- heat in nearly all sections except in the dry areas where the
l crop is almost a failure.
With the harvest now under way in

S

\

Mo.,

JuLY 1, 1927

No. 7

MAY BUSINESS IN THE TENTH FEDERAL RESERVE DISTRICT
Returns for the Month Compared to Returns for April 1927 and May 1926
in Percentages of Increase or Decrease
May,1927 May,1927
Compared to Compared to
April, 1927 May, 1926
General Business
Bank debits, 29 citie:..__ _ _ _ _ _ _ _.
Clearings, Federal Reserve Ban _ _ _ _ _ _ _ 1.1
4.4
Items handle...__ _ _ _ _ _ _ _ _ _ _. 1.5
0.9
Postoffice receipts, IO citie...__ _ _ _ _ _ _ 9.9
- 1.7
Business failures, number
16.9
0.9
28.4
Amount of liabilitie
61.3
Trade
Department store sale.,__ _ _ _ _ _ _ _. 10.8
- 2.7
- o.8
Men's and women's apparel, retail--·····---····-II·2
Shoes, retai,__________
3.3
- 6.1
Furniture, retai.-'--------················-···· 14.3
Wholesale trade, 6 line.,___ _ _ _ _ _ _ _ _ 0.4
Lumber trade, retail yard..,_________ o.6
Market Receipts
Whea._______________ 59•7
105.4
Cor,1.-_ _ _ _ _ _ _ _ _ _ _ _ _ _ 144.3
1.6
2-4
Oat
7.6
12.5
c~
~4
- 2.2
Calve
20.7
1
Hog
24.9
7•9
1 7•9
Sheep·----·······
7.8
Horses and mule
23.4
48.5
Production
Flour_ _ _ _ _ _ _ _ _ _ _ _ __
o.8
26.7
Crude oi..___ _ _ _ _ _ _ _ _ _ __
8.5
37.6
Soft coa..___ _ _ _ _ _ _ _ _ _ _ __
-28.2
Cemen.___ _ _ _ _ _ _ _ _ _ _ _ __
-7.6
Face Bric,.___ _ _ _ _ _ _ _ _ _ _ __
5.0
Zinc ore (shipped) _ _ _ _ _ _ _ _ _ _.
-19.0
Lead ore (shipped) _ _ _ _ _ _ _ _ __
- 2.8
Meat Packing
2 3•5
8.7
Cattle.------···-----------Calve.,___ _ _ _ _ _ _ _ _ _ _ __
21.0
- 4.8
Hog.,___ _ _ _ _ _ _ _ _ _ _ _ __
2 4·3
23.1
Sheep _ _ _ _ _ _ _ _ _ _ _ _ __
13•7
3.5
Construction
Contract award.,___ _ _ _ _ _ _ _ _ _ _.
81.9
Permits in 19 citie...__ _ _ _ _ _ _ __
-0.3
Value of permits._____________
- 2.9

the lower portions of the district, later reports show higher per
acre yields than were forecast by the June 1 reports and indieating a larger crop than was promised. Other growing crops
deteriorated during May. Corn and cotton plantings were two
to three weeks late and, due to cold weather, these and other
spring planted crops were making slow progress .
The feature of the livestock situation in May was the advance
in prices of beef cattle to the highest levels in a year and a half,

This Copy Released For Publication In Morning New&papers June 29.

THE MONTHLY REVIEW

with the cattle industry in a firmer pos1t10n than for many
months. The hog situation, on the other hand, was less promising, prices dropping to the low level of the year. There was
little change in the sheep and lamb situation.
Building activity increased during May and the number and
value of permits issued in leading cities compared favorably
with the record for the same month last year, while the value
of building contracts awarded in the entire district exceeded the
total for May, 1926, by 81 per cent.

Banking and Credit
The money situation in this district at the opening of the
1927 harvest season exhibited no material change from the
comparatively easy conditions which prevailed during the earlier
months of the year. Banks, apparently, were in better position
than in several previous summer seasons to finance the heavy
marketward movement of new wheat which is becoming increasingly heavy as the harvest season advances.
Loans of reporting member banks outstanding on June 15
were a little less than a year ago. Their investments, after continuing the increase recorded for preceding months of the year,
reached the highest figures of record on June 1, but de.
dined slightly by the middle of June. Their deposits, while
showing an increase during May, were on June 1 5 a Ii ttle below
the amount reported one year ago.
Weekly condition statements of the Federal Reserve Bank of
Kansas City and branches as of June 15 reflected moderately
heavy borrowings by member banks for t he season and some
decrease in open market purchases of bills.
Principal resources and liability items of the Federal Reserve
Bank of Kansas City, and of sixty-five reporting member banks,
as shown in the tables, indicate the changes in four weeks and
fifty-two weeks.
RESERVE BANK CLEARINGS: May check collections
through the Federal Reserve Bank of Kansas City and branches
at Omaha, Denver and Oklahoma City fell a little more than 1
per cent below those in April in value and number of items
handled. However, the May, 1927, totals showed increases over
May, 1926, of 4.4 per cent in amount and 0.9 per cent in items
handled. The number of banks receiving this service in May was
3,440. The record of the Federal Reserve Bank's clearing operations follows:
January·--·················
February..·-···············
March ........................
ApriL.·---·················
Ma Y·--·······················
Five Months ..·---·····

ITEMS
AMOUNT
1926
1926
1927
1927
5,689,267 '$ 985,048,000 '$ 93 2,787,ooo
5,543, 292
5,188,147
5,308,263
849,360,000
809,969,000
6,190,274
6,265,324 1,055,u3,ooo 1,019,no,ooo
5,781,244
5,770,268
901,173,000
9 27, 197,000
5,696,261
878,270,000
916,730,000
5,647, 274
28,399,218

28,680,396 'f,4,733,448,ooo $4,541,309,000

PRI CIPAL RESOURCE AND LIABILITY ITEMS OF SIXTYFIVE REPORTING MEMBER BANKS IN THE TENTH
FEDERAL RESERVE DISTRICT
June 15, 1927 May 18, 1927 June 16, 1926
Total Loans and discounts .............. '$ 429,773,000 'I, 415,9f;6,ooo 'I, 434,327,000
Secured by U.S. Obligations..........
4,348,000
4,272,000
3,910,000
Secu red by other bonds and stocks 129,665,000 n3,71 5,oco 106,524,000
All others.. .......................................... 295,760,000 297,999,000 323,893,000
Total Investments.............................. 205,921,000 208,108,000 194,847,000
U.S. Securities.................................. 103,852,000 n1 ,419,ooo IC6,612,ooo
Other bonds, stocks, securities........ 102,069,000
96,689,000
88,235,000
Total loans, discounts and inv'm'ts 635,694,000 . 624,094,000 629, 174,000
Total deposits.................................... 652,996,000 638,911 ,000 654,021,000
Demand.............................................. 494,854,000 486,191,000 501,525,000
Time .....................:.............................. 151,574,000 151 ,421,000 146,136,000
Government........................................
2,706,000
1,299,000
6,360,000
Reserve balances with F. R. Bank..
53,884,000
56,023,000
55,432,000

PAYMENTS BY CHECK: The general volume of busines
in the Tenth District during a period of four weeks ending June
1 is indicated by debits to individual accounts at reporting
banks in twenty-nine cities. The daily average of amounts
debited during the twenty-three banking days in this period was
$52,823,913. This compares with $50,846,166 as the daily average for twenty-four banking days in the preceding four-week
period ending May 4, and with $50,475,304 as the daily average
for twenty-three banking days in the four-week period ending
June 2, 1926. The reports for twenty-nine cities:
Albuquerque, N. M·-···---····················
Atchison, Kans ... - - - - - - Bartlesville, Okla _ _ _ _ _ _ __
Casper, Wyo _ _ _ _ _ __
Cheyenne, Wyo.·-·····-----Colorado Springs, Colo _ _ _ _ __
Denver, Colo. ----····················
Enid, Okla ............. - - - - - - Fremont, Nebr _ _ _ _ _ _ _ __
Grand Junction, Colo _ _ _ __
Guthrie, Okla ..---·····································
Hutchinson, Kans.·-············---Independence, Kans·-····-························
Joplin, Mo.. - - - - - - - - Kansas City, Kans _ _ _ _ _ __
Kansas City, Mo _ _ _ _ __
Lawrence,Kans.---····························-··
Lincoln, Nebr _ _ _ _ _ _ _ __
Muskogee, Okl...__ _ _ _ _ _ __
Oklahoma City, O k l ~ - - - - Okmulgee, Okl _ _ _ _ __
Omaha, Nebr.·-·················---Parsons, Kans ............. _ _ _ _ __
Pittsburg, Kans.·-·····································
Pueblo, Colo'------··················
St. Joseph, Mo ......... - - - Topeka, Kans·····----··················
Tulsa, Okla ...............................................
Wichita, Kans ..... - - - - - - -

Four Weeks Ending
Per Cent
June 1, 1927 June 2, 1926 Change
'$ 10,588,000 '$ 9 ,066,000
16.8
5,533,ooo - 1.8
5,433,ooo
23,049,000
14,299,000
61.2
7,208,000
9,921,000 -27.3
4,839,000
5,283,000 - 8.4
12,434,000
u,763,ooo
5·7
168,187,000
148,222,000
13.4
n,721,000
12,098,000 -3.1
3,9 14,000
3,399,ooo
15.1
3,207,000
3,107,000
3.2
3,I 58,000
2,739,000
I 5.3
13,001,000
9,628,000
35.0
10,917,000
10,224,000
6.8
15,821,000
14,682,000
7.7
17,694,000
17,886,000 - I.I
335,8 00,000
32 5,0 45,000
3.3
4,584,000
4,39°,000
4.4
30,127 ,ooo
30,120,000
IO.I
9,846,000
8,946,000
79,0 75, 000
93,685,ooo
8,037,000
II,131,000 -27.8
5 I
18.L
173,571,000
181,846,000 - 4.6
2,624,000
2,851,000 - 8.o
4,961,000
5,684,000 -12.7
13.1
16,949,000
14,989,000
53,471,000
57,514,000 -7.
I 5,404,000
13,934,000
10.51
III,397,000
III,483,000 - O.I
20.I
43,3 23,000
36,074,000

29 Cities, 4 Weeks................................ $1,214,950,000 $1,160,932,000
29 Cities, 22 Weeks........ _ _ _ _ _ 6,877,338,000 6,6o7,446,ooo

4.4
4.1

1

SAVINGS IN BANKS: Reports of fifty-eight banks in leading cities as of J une 1 show further increases in the amount of
their savings deposits and number of accounts over May r,
1927, and over June I, 1926. The deposits:
Denver, Colo_____
Kansas City, Kans.·---·······
Kansas City, Mo.................
Lincoln, Nebr.......................
Oklahoma City, Okla..........
Omaha, Nebr
St. Joseph, Mo.....................
Tulsa, Okla...........................
Wichita, Kans ...·-·················
Other Cities
Total......................................

Banks June 1, 1927
6 '$ 45,850,544
4
2,630,590
IO
16,445,250
3
3,046,144
6
7,748,165
5
7,983,853
5
7,292,180
4
13,590,053
II

6,155,409

4

1,088,564

May I, 1927
$ 46,155,285
2,629,077
16,244,396
2,964,475
7,702,009
7,925,939
7,213,388
13,290,036
5,957,139
1,089,969

58

$n1,830,752

$1n,171,713

June 1, 1926
'$ 46,550,582
2,855, 237
15,386,841
3,040,729
7,497,696
7,544,7 23
7, 294,041
11,435,602
5,338,017
1,022,033
'f,107,965,501

PRINCIPAL RESOURCE AND LIABILITITY ITEMS OF THE
FEDERAL RESERVE BANK OF KANSAS CITY INCLUDING BRANCHES
June 15, 1927 May 18, 1927 June 16, 1926
Gold Reserves .................................... '$ 85,737,858 $ 94,198,426 $ 82,746,865
Reserves other than Gold................
5,856,176
5,754,250
4,786,606
Total reserves .......... _ _ _ _ _
91,594,034
99,952,676
87,533,471
Bills discounted..................................
15,599,081
19,124,069
18,637,071
Bills purchased..................................
9,175,377
9,784,101
12,767,975
U.S. Securities..................................
33,853,000
23,175,500
33,250,900 I
Foreign loans in gold_········-----··•·•·····································
292,500
Total bills and securities..................
58,627,458
52,083,670
64,948,446
Total Resources·-······························· 204,257,429 204,801,536 208,243,4;•
F. R. Notes in Circulation ....·-·········
63,484,975
64.,323,375
62,304,7cJIII
Total Deposits.....•........_ _ _ _
88,367,692
90,267,612
89,049,309

1

THE MONTHLY REVIEW

Dry Goods ................................
Groceries................................... .
Hardware ..................................
Furniture ................................. .
Drugs ........................................
Millinery·-·································

3

WHOLESALE TRADE IN THE TENTH FEDERAL RESERVE DISTRCT
SALES
OUTSTANDING (Mo.End)
COLLECTIONS
STOCKS (Month End)
Reporting
May, 1927, compared with May 31, 1927, compared with May, 1927, compared with May 31, 1927, compared with
May, 1926 April 30, 1927 May 31, 1926 April, 1927
May, 1926 April 30, 1927 May 31, 1926
Stores
April, 1927
6
- o.4
- 1.5
- 3.3
- 2.7
- 5.4
- o.4
- 1.9
4•9
3
- 0.2
16.6
5•5
2.3
2.0
7•3
- 4.7
-18.4
-10.0
I.2
8
- 3.8
- 4,2
I.I
5.2
5•9
7•5
5
9.o
- 4.6
o.9
- 8.5
7.4
11.9
- 4.5
- 9·9
6
2.0
4.0
- 0.7
- o.6
Even
3.1
- 1.3
- 5.6
4
-52.4
-30.4
-26.1
-29.4
-37.8
-15.0

Trade
RETAIL: The dollar volume of retail trade in this district in May, indicated by combined sales of thirty-three
department stores, was 10.8 per cent smaller than in April and
2.7 per cent smaller than in May, 1926. The reports disclosed
that the recessions were not so great in some cities, and at individual stores in cities, as in others. Of the stores reporting
for the month sales at fourteen were larger and at nineteen
smaller than in May, 1926. Combined sales of the reporting
department stores for the first five months of 1927 were 2.3
per cent in excess of sales for the like period in 1926.
Sales of men's and women's apparel at reporting stores showed
almost the same percentages of decline as those reported by
department stores. Sales of shoes at retail stores were larger
than in April but smaller than in May of last year. Sales at
retail furniture stores showed increases over the preceding month
and the same month last year.
Department store stocks at the close of May were smaller than
a month earlier and a year earlier. Stocks at apparel and shoe
stores, although smaller than at the close of April, were substanially larger than at the close of May last year. Retail furniture
tores reported month-end inventories showed stocks were
maller than at the close of the preceding month and a year ago.

l

WHOLESALE: Firms engaged in six lines of merchandising-dry goods, groceries, hardware, furniture, drugs and millinery-reported the dollar volume of their combined sales in
May was 0.4 per cent smaller than in April, but 1.7 percent
larger than in May, 1926. Lines reporting gains over April were
furniture and drugs, and lines reporting gains over May of last
year were groceries and drugs.
Wholesalers of dry goods reported retail merchants were
carrying small stocks and were buying in small quantities.

also had the effect of holding down the volume of sales of wholesalers. Conditions for the wholesale furniture trade were more
satisfactory in May than in the previous months and while the
volume of distribution was seasonally heavy it was not up to
that of last year. May conditions were favorable for the wholesale drug business,
While the implement trade during the season, particularly in
the lines of tractors and harvest machinery, has been running
considerably ahead of this time last year May business was disappointing because of dry weather over a large area in western
Kansas, western Oklahoma, southeastern Colorado and eastern
New Mexico.
COLLECTIONS: Department store collections during May
were 40.3 per cent of their outstanding accounts as compared
with 41.7 per cent for April and 42 per cent for May, 1926. Collections at qther retail stores exhibited a similar trend, an exception being retail furniture stores which reported collections
were better than in the former months with which comparison
is made. Wholesalers reported collections generally fair.

Failures
Business failures in the Tenth District and in the entire country were fewer in May than in April but more numerous than
in May, 1926. Liabilities involved in May failures in the district, however, exceeded those for the preceding month and
also those for the corresponding month last year. The number
of failures and the amount of liabilities in the United States
during May, as reported by R. G. Dun & Company by Federal
reserve districts, follow:
Federal Reserve District
First, Boston----································-Second, New York ................
Third, Philadelphi
Fourth, Cle-,·eland._.................................
Fifth, Richmond ......................................
Sixth, Atlanta ..........................................
Seventh, Chicago·---·······························
Eighth, St. Louis·--···--··························
Nin th, Minn ea polis·--················-··-······
TE TH, KANSAS CITY-····-············
Eleventh, Dallas ......
Twelfth, San Francisco ..........................

NUMBER
LIABILITIES
1926
1927 1926
1927
2o6 210 $ 5,536,«o '$ 3,847,729
6,797,687
5,748,621
32 5 290
61
752,612
46
3,071,127
1 55
148
3,225,890
4,473,273
I'l.5 118
5,707,404
1,963,570
I'll
1,280,119
1,673,027
54
266 222
7, 176,994
5,455,359
81
234,034
54
539,2 09
88
676,560
87
997,778

The heavy volume of distribution by wholesale grocery
firms was said to reflect about the usual employment for
this time of the year. The wholesale hardware trade like
102
2,135,281
103
that of the paint and building material trade, was affected
1,220,408
51
91
to a considerable extent by unfavorable weather and bad road
277 301
3,743.678
conditions. Retail hardware merchants apparently were mak- _
ing an effort to reduce their stocks on hand and this practice Total United States, May...................... 1,852 1,730 $37,784,773

1,323,712
802,029
2 ,945,55°
'l,33,543,318

RETAIL TRADE AT 33 DEPARTME T STORES IN THE TENTH FEDERAL RESERVE DISTRICT
SALES
(RETAIL) STOCKS
OUTSTAND. ORDERS ACCTS. RECEIVABLE COLLECTIONS
Stores
May 1927 Five Months 1927
May 31, 1927
May 31, 1927
May 31, 1927
May, 1927
R eporting com pared to
compared to
compared to
compared to
compared to
compared to
. fay, 1926 Five Months 1926 '\pr. 30, 1927 May 31, 1926 Apr. 30, 1927 May 31, 1926 Apr. 30, 1927 May 31 , 1926 Apr. 1927 May, 1926
Kansas City........
- 8.o
- 3· 2
- 4.6
- 4.8
-11.7
-25.9
- 0.5
- 5•3
I.4
I.I
3
Denver ................
- 1.3
1.8
- I.7
- 5.6
43.7
- 7.4
- I. 2
- o.4
5.7
1.3
5
Wichita ............... .
9.7
10.7
- 3·5
4.8
- 0.5
18.5
I.I
16.5
3
Oklahoma City .. .
1.7
5.3
2.4
26.6
o.6
23.1
8.9
12.I
- 3.9
3
2
Lincoln ................
-I8.8
- 7.o
- 3.5
- I.4
-35.4
-39.6
0.9
- 1.9
5.0
-14.8
ulsa ....................
7.1
13.9
- 2.9
12.5
13.1
20.5
- 0.3
9.0
- 4.1
21.6
3
- 3.7
- 3.7
- 4.5
-22.0
1.6
- 0.4
- 0.5
Even
- 8.8
ther cities·-·······
•
\

--------------------------------------------------

Total..................
33
- 2.7
2.3
- 3.0
- 2.9
14.3
-10.6
0.9
2.8
2.0
NOTE: Percentaie of collections in May on outstanding accounts April 30, all stores reporting, 40.3%. Collections same month last year, 42.0%.

4.5

THE MONTHLY REVIEW

4

The Crops
The United States Department of Agriculture, in its June 1
report, placed the composite condition of eleven crops in the
seven st ates whose areas or parts form this district at 9. 1 per
cent below the ten-year average condition on that date. Crops
on which this percentage figure was computed include winter
and spring wheat, oats, barley, rye, tame hay, wild hay, pastures,
and fruits, but do not include corn, cotton, potatoes, grain
sorghums and sugar beets. The June 1 figure of 90.9 _per cent
compares with 91.3 percent on June 1, 1926. · Percentages for the
seven states, based on the ten-year average condition (not the
normal condition) of 100 per cent, arc as here shown:
CONDITION
Per Cent of 10-Year Average
June 1, 1927 June 1, 1926
Colorado,_ _ _ _ _ _ _ _ ..........................
84.9
103.4
86.1
92.9
Kansas.·-··-------------Missouri .......... _ _ _ _ _ _ _ _ _ _ __
99.8
80.6
Nebraska_ .. ___________
109.5
82.2
66.2.
12.0.3
New Mexico-······························--Oklahoma...._........ _.......... _ _ _ _ _ __
76.7
1o3.3
96.0
99•4
Wyoming.·-····-·······················-········-··········-··-·Seven State~----··-····························-····
United States-··············--····-······-··-··················

90.9
96.2.

91.3
92.0

WINTER WHEAT: The pre-harvest estimate for the seven
states, as reported by the United States Department of Agriculture and cooperating State Boards of Agriculture, place the
condition of winter wheat on June 1 at 21 points lower and the
estimated yield for the seven states at 47,570,000 bushels less
than reported on May 1. Hdwever, the June 1 figures do not
take into account the improvement in winter wheat during June
which, according to late reports, indicated the harvest returns
would show a much larger yield than forecast. The official
June 1 figures:
PRODUCTION IN BUSHELS
CONDITION%
June
May,
Final,
June 1,May1,June1,
192.7 192.7 1926
192.7
1927
192.6
15,2.01,000 18,362.,000 14,484,000
Colorado-·-·······- 63
80
80
108,045,000 143,2.00,000 150,057,000
Kansas----····-··- 58
86
70
2.0,648,000 2.0,082,000 2.1,282.,000
Missouri-----··-· 77
82.
68
62.,353,000 57,968,000 37,165,000
Nebraska.·--··-···· 91
94
64
New Mexico__.. 10
60 100
2.09,000
1,12.2.,000
4,876,000
Oklahoma-. .... -..- 54
80
82.
38,102,000 51,408,000 73,745,000
850,000
836,000
756,000
Wyoming .....·-··-·· 85
88
88
Seven States·--···· 64.3
Tenth District.... _ 64.3
United States_.__ 72..2.

85.3
85.4
85.6

72.5
72.5
76.5

2.45,408,000 292.,978,000 302,365,000
2.2.9,333,000 276,909,000 283,72.7,000
537,000,000 593,940,000 626,929,000

The cooperative report of the United States Department of
Agriculture and the Kansas State Board of Agriculture said:
Many causes contributed to the decline in wheat prospects. Chief among them
was the lack of May rainfall and high winds that whipped the tender foliage
stimulated by April rains and sapped the surface soil of a supply of moisture
that looked ample for all needs a month ago. The western third of Kansas
suffered the worst, but all except about twenty eastern counties felt the influence
of unfavorable moisture conditions. Hessian fly, chinch bugs, hoppers, wheat
straw worms, cut worms, foot rot, hail storms, all took their toll, although all
of these causes combined probably caused less damage than the dry and trying
winds without rain.

The opening of the harvest season was characterized by big
slump in prospective production of small grains in Oklahoma
with a near failure in the Panhandle, it was announced by the
Federal and State crop statisticians. Wheat in three Panhandle
counties is practically a failure, due to drought. The Nebraska
report indicated winter wheat was in excellent condition and
with an increased acreage that state would produce a record crop.
In Missouri wheat lost five points during May owing to excessive
rains and stan,ding water on uplands and frequent overflows in
nearly all of the river bottoms, with best conditions prevailing
in the western third of the state. Colorado winter wheat prospects declined seventeen points during May on account of dry

weather and high winds. Frequent rains and cool weathe.
caused most of the crops over Wyoming to be two to three weeks
late, although winter wheat fared better than most of the crops
and a yield estimated at seventeen bushels per acre was forecast
for that state. New Mexico, with a small acreage of winter
wheat, suffered a severe loss by dry weather.
Spring wheat in the Mountain and upper Great Plains areas
was rather slow in starting this year. The condition in Wyoming
was placed at 90 per cent of normal and in Colorado at 78 per
cent, which was 1 and 2 points, respectively, below the condition
on June 1, 1926. In Nebraska, however, the condition was 88
per cent on June 1 or 2 points better than a year ago. The bulk
of Nebraska's crop is in the northwest quarter of the state and
conditions were reported as ideal.
OTHER CROPS; The oats crop suffered serious declines
during May but the c..ondition on June 1 showed better promise
than a year ago in Missouri, Kansas, Nebraska and Colorado,
and a decline in Oklahoma and Wyoming. The barley crop declined in condition during the month, suffering the same as
wheat. !.Rye conditon on.June 1 was not so good in most of the
producing areas as last year. Nebraska was an exception, the
condition of June 1 indicating a crop for that state of 4,203,000
bushels, against last year's crop of 2,606,000 bushels.
Potato plantings in the Mountain states were not completed
on the first of June and generally were not doing as well as expected. In Kansas, where a large acreage of early potatoes was
planted, the condition on June 1 was 71 per cent or 5 points
below the condition on the same date last year. Oklahoma
potatoes were rated at 64 per cent in condition with prospects
for a smaller yield than last year. In Missouri's commercial
districts potatoes rotted badly and plants were poor with a
considerable loss in acreage.
Sugar beet plantings in the irrigated sections were about finished at the first week in June. There was considerable reductio
in the planted acreages, particularly in Nebraska, due to delay
in contracting with refiners. The early planted crop in Nebraska
was injured by freezing and in Colorado by high winds and much
replanting was necessary. The entire crop was late, according to
the reports, but generally was in fairly good condition.
The condition of all hay on June 1 was generally very favorable and ranging well above last year except in some dry areas
in the southwest part of the district. Some alfalfa in the best
river bottoms in the eastern part of the district was killed by
overflow and on June 1 was not so promising a'S last year, otherwise the condition of alfalfa is rated very high.
CORN planting, although two to three weeks late over the
larger producing sections of the district, was about completed
by June I. Moisture supply was ample for most sections but
the weather was too cool for germination and corn had a poor
start and to the middle of June it had not made the usual progress. Cut worms have seldom been so destructive in Kansas as
this year. Nebraska also reported the presence of cut worms.
COTTON planting in southern parts of this district was retarded by weather and soil conditions, which also were unfavorable for healthy growth.
FRUIT prospects on June 1 were not so good as on the corresponding date last year. The condition of apples in Colorado
was reported as 72 per cent of a full crop, Kansas 66 per cent,
Oklahoma 64 per cent and Nebraska 77 per cent. Condition of
peaches in Colorado was 78 per cent of a full crop, or 18 points
below a ye~r earlier, Kansas 41 per cent, Oklahoma 35 per cent
and Nebraska 75 per cent, while the condition in Missouri was
not as good as it was on June 1, 1926. The Colorado pear cro.
with a condition of 90 per cent of a full crop, was more promisin~
than the other important crops.

I

•

5

THE MONTHLY REVIEW

Grain Marketing
Movements of wheat to the markets in the Tenth District
during May were the largest for that month since 1922, receipts
for the month at five markets exteeding those for April by 59.7
per cent and those for May of last year by 105.4 per cent. The
heavier marketward movement indicated that with the new
crop coming on farmers gen er ally were disposing of their reserve
stocks of old wheat. Advance in prices during the month also
proved an incentive to heavy marketing. At Kansas City the
closing quotation range for May on No. 1 dark hard wheat was
$1.46@1.60,½ as compared with $1.32@1.38.½' on April 30.
May receipts of corn increased 144.3 per cent over April, and
were 1.6 per cent larger than those for May, 1926. This increase
was, for the greater part, in response to an advance for the month
of 17@21.½ cents at Kansas City, No. 2 white and No. 2 mixed
corn selling on May 31 at 97@98,½ cents and No. 2 yellow 1
cent higher. Receipts of oat at the five markets were 1.4 per
cent smaller than in April but 7.6 per cent larger than in May,
1926. The May receipts in detail:
Hutchinson.
Kansas City
Omaha_ .. __
St. Joseph._
Wichita.-..

Wheat,
Corn,
Oats,
Rye,
Barley,
Kafir,
Bushels
Bushels
Bushels
Bushels
Bushels
Bushels
6,250
127,400
1,432,350
38,750........................................
4,062,800 1,213,500
266,000
6,000
2.2,400
192,500
929,600 1,878,800
302,000
46,200
4,800....................
709,800 1,005,000
106,000............................................................
1,256,850
44,400
25,500........................................
18,000

May, 1927._ 8,391,400 4,180,450
April, 1927 .. 5,253,000 1,711,300
May, 1926... 4,085,450 4,113,900

699,500

52.,200
29,900
78,500

716,500

650,000

33,45o
27,000
46,500

337,900
347,700
385,700

Flour Production
Mills in the Tenth District were operated during May at 67.8
per cent of full-time capacity and produced 2,070,051 barrels of
flour. This was the highest per cent of operation and the largest
production for the month of May of record. The number of barrels produced exceeded that for April by 15,853 and that for
May, 1926, by 436,420 or 26.7 per cent. The flour output at the
leading milling centers and at interior mills in the district, compiled from weekly reports to the Torthwestern Miller, is here
shown:
May, 1927 April, 1927 May, 1926
Barrela
Barrels
Barrels
112,265
u2,062
88,095
Atchison .....· - - - - - · ·································
586,128
592,181
375,025
Kansas CitY-··············------Omaha.._. _ _ _ _ _ _ _ _ _ __
97,538
86,371
94,o96
120,715
98,585
n5,054
Salina __ ····-························------143,985
l 50,907
l 58,693
St. Joseph__········ - - - - - - - - Wichita. .................................................................
172,181
176,753
133,475
Outside-............................................................... .
837,239
837,339
669, 193
Total.._..................................................................

2,070,051

2,054 1198

1,633,631

Live Stock
Contrary to early expectations more cattle were shipped into
the Kansas Flint Hills and also into the Osage pastures of Oklahoma for the 1927 grazing season than were received in the
spring of 1926, according to a report of the United States Bureau
of Agricultural Economics cooperating with the Kansas tate
Board of Agriculture, which said:
A very complete check of the railroad movement into the counties comprising this district (Flint Hills) shows that 8 per cent more cattle were unloaded at
receiving points in the blue stem pastures from January 1, to June 1, 1927, than
in the same period of 1926. Total receipts for the five-month period this year
are estimated at 251,000 head compared with 232,000 in 1926; 248,000 in 1925;
229,000 in 1924; 219,000 in 1923; and 270,000 in 1922. The movement in 1927
was decidedly earlier than in 1926. About 76 per cent of the cattle were unloaded this year prior to May 1, as compared with 68 per cent by May 1, 1926.
Receipts during January, February and March were almost twice as large as in
1926. • • A survey and check of railroad movement in the Osage Country
as of June I indicated that there are 181,000 head of cattle grazing this year as
compared with 160,000 head in 1926; 190,000 head in 1925; and 130,000 head
in 1924.

Cattle in r ansas and Oklahoma ·, ere on June I in a good state
of health and putting on flesh rapidly. In Colorado the condition
of cattle declined 4 points in May and in yoming cattle suffered
from the May blizzard and a considerable loss of calves was reported.
The condition of sheep on the ranges of Wyoming was reported
at 92 per cent as compared with 88 per cent one month earlier
while many lambs were lost during the May storm. Lambing at
that time was not well under way in most sections and the crop
promises to be not far from usual. There were also some losses
of lambs in Colorado and a fair to good crop was e,·pected in most
localities. Dry conditions in the sou thea tern part of Colorado
was causing some sheep owners to look elsewhere for water anJ
ranges.
MARKET MOVEME TS: May movements of live tock
from farms, ranges and feeding grounds to the six leading markets in the Tenth District were unusually large for the month
and season. Receipt of all classes of livestock during May
totaled 1,836,742 head, indicating increa es of 214,042 over
April, 253,629 over May, 1926, and 188,888 over May, 1925, and
a decrease of 128,347 from the total for May, 1924.
Receipts of cattle at the six markets during May were the
largest for any month since last November. The total for the
month indicated increases of 25.4 per cent over April, 12.5 per
cent over May, 19l6, and 27.5 per cent over May, 1925. Receipts of calves were 20.7 per cent larger than in the preceding
month but were 2.2 per cent smaller than in the corresponding
month last year.
Hogs arriving at these markets during May were in exceptionally large numbers for a month in the spring and summer
killing season. The total was 24.9 per cent above that for April,
17.9 per cent above that for May, 1926, and 9.1 per cent above
that for May, 1925.
.
Receipts of sheep and lambs in May declined 7.8 per cent from
the April total but showed an increase of 17.9 per cent over the
total for May, 1926.
The marketing of horses and mules declined seasonally in May,
due to increased farm activities, but the month's total stood
48.3 per cent above that for May, 1926.
Receipts of the various classes of livestock at the six markets
are here shown for the month of May and the five months of
1927, with comparisons:
Horses,

Kansas CitY·--·············
Omaha ..........................
St. Joseph.----·············
Denver..........................
Oklahoma City............
Wichita..·-·····················

Cattle
157,251
131,809
47, 297
50,109
23,49 1
26,940

Calves
24,34°
6,227
7,3 1 7
4, 105
5,439
3,5 23

Hogs
282,786
249,909

182,500

1 34,555

103,772

39, 287
31,651
79,34o

Sheep
163,707
49,028
1,822
24,862

Mules
2,371
185
374
4o7
257
2,081

Cars

9,805
7,807
3,53 2

2,014

93 1
1,6o7

May, 1927 .................... 436,897 50,951
817,528
525,691 5,675 25,½6
April, 1927.................... 348,362 42,213
654,776 569,937 7,412 21,737
May, 1926 .................. _ 388,421 52,088 693,115 445,662 3,827 24,013
5 months, 1927............ 1,958,008 254,406 3,774,318 2,66o,042 51,365 122,772
5 months, 1926 ............ 1,876,659 268,196 3,6o2,678 2,853,986 50,830 125,338

In the face of the heavy receipts cattle values were strengthened by an active trade in dressed beef, and the Kansas City
May top of 13.40 for heavy prime steers was the highest price
paid at that market in eighteen months. The ay top for spring
lambs was 18. 10, which was 30 cents under the high record
price for two years paid in April, though prices of fat sheep and
lambs declined 1 to 2 during the month. The outstanding
feature of the May livestock trade, however, was a decline in the
price of fat hogs. The low point of "9. 15 was reached in the last
week of the month, 3.20 below the year's high point on February 7, and $5.35 below the level of the first week in May, 1926.

6

THE MONTHLY REVIEW

STOCKER AND FEEDER SHIPMENTS: The countryward movement of stock and feeding cattle, calves and sheep
was moderately heavy. May shipments of cattle to the country
were the largest for that month since 192+ Shipments of calves
were the largest for May since 1922 and shipments of sheep the
largest May total of record since 1921. The outgo of hogs was
very light in comparison with the heavy market receipts. The
summary follows:
Kansas City..................................... .
Omaha.-............................................ .
St. Joseph·-·······································
Denver ............................................. .

Cattle
36,679
9,809
3,899
26,630

May, 1927 ....................................... .
April, 1927 ....................................... .
May, 1926 ....................................... .
5 months, 1927 ...... ..........................
5 months, 1926 ................................

77,017
59,87 2
69,480
384,758
364,168

Calves
4,696

39°

1,573

6,659
3,979
4,630
24,824
17,7II

Hogs
8,499
1,697
2,028
2,007

Sheep
25,682
32,685
II,676
3,49 1

14,231
16,796
19,478
87,320
65,601

73,534
61,064
41,603
421,358
273,223

l\1EAT ACKI G: Operations of meat packing plants at the
six livestock centers were at a higher rate of activity than in any
month of the present year, due to more li beral supplies of livestock. Purchases by packers of all classes of meat animals
were in larger numbers than in April and with the exception of
calves, were larger than in May, 1926. The number of head
purchased by packers during May at each of the six markets,
including hogs shipped direct to packer yards, is shown in the
following:
Cattle
86,945

Kansas City..................................... .
Omaha·- ··-··············· ············· ............ .

Calves
21,492
5,125
6,807
2,482
4,866
2,437

95,795

St. Joseph.-...................................... .
Denver ... ..........................................
Oklahoma City ............................... .
'\,Vichi ta..............................................

J7,9II
10,718
I 5,578
8,136

May, 1927.......................... .............
April, 1927........................................
May, 1926................ .......................
5 months, 1927...............................
5 months, 1926.................. ............

255,083
206,540
234,609
1,1 42,739
1,134,795

Hogs
231,962
191,240
107,527
27,586
28,351

75, 295

Sheep
125,206
121,420
88,415
1 5,355

1,481
6,611

43,209
661,961
358,488
35,711
532,521
346,199
45,382
537,669
315,249
2u,955 2,919,711 1,660,401
223,917 2,631,112 1,806,029

Stocks of pork in Kansas City at the close of business ay 31
were reported as 43,334,600 pounds, compared to 41,218,500
pounds on April 30, 1927, and 28,735,900 pounds on May 31 ,
1926.

Petroleum
In the face of efforts to curtail production of crude oil the
output from wells in the Tenth District made a further increase
during May. Reports of the American Petroleum Institute indicated the average flow was approximately 932,000 barrels per
day in May, with the gross production for the thirty-one days
totaling 28,892,000 barrels. This was the highest daily average
and gross production of record for the fields of this district. The
average for the month was larger by 49,200 barrels per day or
5.6 per cent than for April, and 254,617 barrels per day or 37.6 per
cent above the daily average for May, 1926. Oklahoma's production, which has increased steadily during the year, accounted
for the major part of the increase. The summary of daily aver~ge and gross production during May in the five producing states
follows:
DAILY AVERAGE

*May,
1927
Oklahoma .......741,742
Kansas.............. 114,742
Wyoming·-······· 6 I ,96-7
Colorado.......... 9,355
New Mexico.... 4,194

April,
1927
693,3oo
115,900
58,700
10,000
4,900

MONTHLY PRODUCTION
May,
*May
April,
May,
1926 ·
1927
1927
1926
483,253 22,994,000 20,949,000 14,981,000
113,7 10 3,557,000 3,478,ooo 3,5 25,000
69,549 l ,921 ,ooo I ,761 ,ooo 2,156,000
299,000
216,000
6,968
290,000
3,903
130,000
146,000
121,000

TotaL ..............932,000

882,800

677,383 28,892,000 26,633,000 20,999,000

•Estimated American Petroleum Institute.

The reports covering field operations show the number of
wells completed in May was 127 less than in April and 123 less
than in May of last year, but daily average new production for
the month was 71,204 barrels greater than in the preceding
month and 170,332 barrels greater than in May, 1926. The
summary of field operations for the month follows:
Oklahoma......................
Kansas..........................
Wyoming......................
Colorado........................
New Mexico.-...............
May, 1927....................
April, 1927....................
May, 1926·--·················

Wells
Bbls. Daily
Completed New Prod.
372
197,341
105
11,501
32
45,142
12
100
II
20

532
659
655

Dry
Wells

254,104
182,898
83,772

125
40
3
II

9

188
216
211

Gas Rigs-Wells
Wells Drilling
49
1,398
6
276
272
o
105
o
135

56
57
43

2,186
2,255
2,522

The foregoi ng reports would indicate a decline in new development work. The number of wells drilling at the close of
May was 69 less than one month earlier and 356 less than at the
close of May, 1926.
Oklahoma and Kansas reported 58 refineries in operation on
June 1, the same as on May 1, but 9 less than on June 1, 1926.
The daily run of crude oil to the stills of these refineries was
268,035 barrels oB June 1, an increase of 8,100 barrels over May
I, but 8,090 barrels less th'an on June 1, 1926.

Mining
BITUMINOUS COAL: Production of soft coal in the various
fields of this district increased during May and the tonnage
recorded exceeded that for April by 2.1 per cent. Due to cessation of operations in many of the mines because of failure of
operators and union miners to enter into new contracts the
output for the month was 28.2 per cent below the tonnage
produced in May, 1926. The production of soft coal:
Arkansas, Kansas and Oklahoma......................
Colorado............................................................... .
Iowa and Missouri ............................................. .
New Mexico·-·······················································
'\iVyoming ..............................................................

May, 1927 April, 1927 May, 1926
Tons
Tons
Tons
269,000
239,000
492,000
587,000
616,000
620,000
131,000
103,000
477,000
241,000
214,000
203,000
356,000
381,000
332,000

Total...................................................................... 1,560,000 1,528,000 2,173,000

ZI C AND LEAD: Production and shipments of zinc and
lead ores between May 1 and June 4 were at the low level of the
year, while average prices paid producers wel"e lower than at
any five-week period in more than three years. During the first
three weeks of May zinc ore sold at 38 per ton, though advancing to 139 per ton in the last two weeks of the period under review. Lead ore dropped from $85 per ton early in the month
to 80 per ton for the week ending May 21 and the average for
the weeks ending May 28 and June 4 was $78 per ton. Shipments
of these ores, and their value, combined for five-week periods,
follow:
ZINC ORES
Value
$ 1,3o4,997
550,887
144,453

LEAD ORES
Tons
Value
5,836 $ 487,9o5
289,017
3,47°
III
9,148

51,590 '/, 2,000,337
71,081
3,009,164
63,720
2,867,400
23 weeks ending June 4, 1927........ 308,252 $13,251,656
23 weeks ending June 5, 1926........ 369,196 18,328,768

9,417 $ 786,070
12,602
1,176,434
9,690
885,156
50,443 $ 4,682,144
55,285
5,928,630

Tons
Oklahoma._ .......................................
Kansas ............................................. .
Missouri ............................................

5 weeks ending June 4..................
5 weeks ending April 30._...............
5 weeks ending June 5, 1926........

33,655
14,201
3,734

During the first twenty-three weeks of 1927 average prices
· paid producers for their ores were $42.25 per ton for zinc and
$91.21 per ton for lead. Average prices for the first twenty-three
weeks of 1926 were $49 .00 per ton for zinc and $105.09 per ton
for lead.

THE MONTHLY REVIEW

Building
Permits issued in eighteen cities in this district showed increas s for May over April of 7.1 per cent in the number and
29.3 per cent in the value of buildings. The May totals,
compared with those for May, 1926, showed a decrease of le s
than I per cent in number and of less tha n 3 per cent in value.
The fay reports, with those for April, 1s2.7, and May, 1926,
for comparison, are shown in the report which foilows:

Albuquerque, N. M ...·-··············
Casper, Wyo
Cheyenne, Wyo ... _ ......................
Colorado Springs, Colo ...............
Denver, Colo ................................
Hutchinson, Kans .......................
Joplin, Mo
Kansas City, Kans.·---···············
Kansas City, Mo .......... ·-············
Lincoln, Nebr...............................
Muskogee, Okla ...........................
Oklahoma City, Okla .................
Omaha, Nebr ..... ..........................
Pueblo, Colo .................................
St. Joseph, Mo•............................
Topeka, Kans ...............................
Tulsa, Okla ...................................
Wichita, Kans

PERMITS ESTIMATED COST Per Cent
Change
1926
1927 1926
1927
64
52 '$ 82,000 '/, 143,3 00 - 42.8
16
26
86.8
21,458
4o,o74
40,020
46.6
27
58,650
31
123,461 - 65.5
90
43,57°
79
75° 644 1,512,400 2,000,200 - 24·4
89,110 - 40.6
36
52,910
34
152, 135
41
310,295 - 51.0
59
II5
3Il
333,160 - 70.0
99,855
633 49o . 1,686,990 2,567,200 - 34·3
121
29°,445
II4
44 2,475
52.3
2 7,355
27
31
39,880
45.8
168
1 ,558,5 2 5
190
802,764
94.I
II6
212
765,9 10 - 2 7·5
554,955
161
108
103,537
220,248
112.7
40,878
152,890 - 73.3
67
74
156
145,086
132
426,135 - 65.9
261
263
215.6
1,294,163
410,045
208
176
265,234
120.9
585,869

Total, May..... ·-·-·

3,o37 3.o46 '/,8,610,663 '/,8,872,519 1 -

2.9

Building contracts awarded in the district, as compiled from
the report of the F. W. Dodge Corporation, had a value of
$21,527,597 as compared with $22,643,671 for April and
$18,838,000 for May, 1926.

Lumber and Material
A survey of the lumber situation to the middle of June indicated that hardwood prices, which ad ·anced rapidly during
March and April due to a large portion of the hardwood area
being inundated, are still firm.
There has been little change in prices on softwoods. Production continues well under consumption. Association reports

7

show smaller stocks June I as compared to July 1, and the in.
dustry is in a better position than usual to meet the normal midsummer quiet which usually precedes the buying for faU trade.
The cut of softwoods lumber in the United States during four
weeks ending May 28 increased aLout 7 per cent over the fourweek period ended April 30. Shipments exceeded production
but were about tne same as in the preceding pP.riod. Order also
were in excess of production and were about 0.4 per cent larger
than for the preceding four weeks. The lumber movement, both
of hardwoods and softwoods, for twenty-one weeks of the year
to May 28, is here shown in board feet as reported by the
various associations to the
ational Lumber
anufacturers
Association.
Cut
Shipments
Orders
Softwoods............................................ 4,296,594,316 4,633,880,277 4,762,774,143
Hardwoods................ _ _ _ _
584,974,000 640,619,000 665,770,000
Total.. ................................................. 4,881,588,316 5,274,499,277 5,428,544,143

Retail lumber ~ales in board fe t at 189 reporting yards
in the Tenth Di trict increased o.6 p r cent over pril but showed
a decrease of 19.3 per cent as compared with sales in May, 1926.
The May husiness at the reporting yards is compared with that
for April, 1927, and May, 1926, in percentages of increase or
decrease.
Sales of lumber, board feet...................... ..............
Sales of All Materials, dollars.... _ _ _ _
Stocks of lumber, end of month............................
Outstandings, end of month .. _ _ _ _
Collections during m011th..·--·································

May, 1927;
April, 1927
o.6
- 5.6
- I.I
2.8
3.2

Compared to
May, 1926
-19.3
-19.6
4.1
-14.0
-23.8

Portland cement production at mills in this district during
May amounted to 1,283,000 barrels, 109,000 barrels more tha n
in April and ro6,ooo barrels less than in May, 1926. Shipments
of 1,297,000 barrels for the month were about even with those
in April but were 90,000 barrels le s than for the same month
last year.
Manufacturers in fifteen states report,e d production of face
brick at an average of 819 thousand per plant in May, an increase of 12.3 per cent over April and an increase of 5 per cent
over May, 1926. Shipments increased 11.1 per cent over the
preceding month but were 4 per cent less than for the month
last year.

Business Conditions in the United States
Industrial production increased in May and continued at a
higher level than a year ago, while distribution of commodities
was in smaller volume than last year. The general level of
wholesale commodity prices has changed but little in the past
two months.
PRODUCTION: Output of manufacturers increased considerably
in May, while production of minerals was maintained at the April
level. Increased activity was shown in cotton and woolen
mills, in meat packing, and in the produc tion of lumber. The
output of iron and steel, nonferrous metals, automobiles, and
building materials, after allowance for usual seasonal variations,
was maintained at practically the same level as in April. Since
the latter part of May, however, production of steel and aut0mobiles has declined. The total value of building contracts
awarded continued slightly larger in May and in the first two
weeks of June than in the corresponding period of last year.
P roduction of winter wheat was estimated by the department of
agriculture on the basis of June 1 condition at 537,000,000
bushels, or 90,000,000 bushels less than last year. The indicated
rye production was placed at 48,600,000 bushels, which is 20
per cent larger than the crop in 1926.

TRADE: Sales of retail stores in
ay showed more than the
usual seasonal decline from the high April level. Compared with
May last year department store sales were about 4 per cent
smaller, while those of mail order houses were slightly larger.
Value of wholesale trade of all leading lines, except groceries
and meats, was smaller in May than in April and in the corresponding month of 1926. Inventories of merchandise carried by
department stores showed slightly more than the usual sea onal
decline in fay and at the end of the month were somewhat
smaller than a year ago. Stocks of wholesale firms were also
smaller than last year. Freight carloadings increased in May by
less than the usual seasonal amount, and for the first time in
over a year daily average loadings were in smaller volume than
in the corresponding month of the preceding year: Loadings of
all classes of commodities except livestock, ore, and miscellaneous products were smaller than last year.
PRICES: The general level of wholesale commodity prices has
remained practically unchanged since the middle of April.
Prices of grains, cotton, and hides and skins have advanced, but
these advances have been offset in the general index by declines
in the prices of livestock, wool, silk, metals and rubber.

8

THE M o N T HLY R EVIEW

BANK CREDIT : Demand for bank credit to finance trade and
industry remained at constant level between the middle of May
and the middle of June, and the growth in the volume of credit
extended by member banks in leading cities during the period
was in holdings of ecurities and in loans on stocks and bonds.
Loans to brokers and dealers in securities by reporting member
banks in ew Yark City increased rapidly and on June I 5 were
in larger volume than at any previous time covered by the
reports.

At the Federal Reserve Banks there was little net change in
the volume of bills and securities between May 25 and June 22,
the fluctuations during the period reflecting largely the effects
of Treasury operations. Discounts for member banks toward
the end of June were in about the same volume as a month
earlier, while there was a decline in the Reserve Banks holdings
of acceptances, and an increase in their portfolio of United
States securities. Condition in the money market were fairly
stable throughout the period, with slight advances in the rates
on commercial paper and more recently on bankers acceptances.

PERC[NT

PERCENT

150

ISO

100

100

Manufacturu

Pl'RCf!IT,

200

150

so

150

50

WHOLESALE PRICES

PRODUCTION or
MANUFACTURES AND MINERALS

-

0

0
1923

1924

1925

1926

100

1927·

BILLIONS OF

OOUAR S

oo~s

1325

1924

1926

1927

Indexes of United States Bureau of Labor Statistics, (1913100). Latest figures May: All commodities 144.1, non-agricultural commodities 143.9, agricultural commodities 143 .7.
BILLIONS

or

100
1923

Index numbers of Production of Manufacturers and Minerals,
adjusted for seasonal variations, (1923-25 average-Ioo). Latest
figures M ay: Manufacturers II2, Minerals 107.

BILLIONS

,41/ C(Jmm«/1h1s

- ... A;l'ic(l/tvrol
N0t1-A9r,cvlltvt,/

or DOLLARS

BILLI ONS Of DOLLARS

10

10

2

2

RESERVE BANK CREDIT

8

6
1·
4

2

MEMBER BANK CREDIT
0

0
1923

1924

1925

1926

I
192.3

192~ ,

1925

1926

. 1927

0

1927

Ionthly averages of daily figures for twelve Federal Reserve
Banks. L at est figures are averages of first 23 days in June.
1

0

Monthly average of weekly figures for banks in IOI leading
cities. Latest figures are averages for the first three weekly reporting dates in June.