The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
THE MONTHLY REVIEW Of Agricultural, I ndustrial, Trade and Financial Conditions in the Tenth Federal Reserve District FEDERAL RESERVE BANK OF KAN SAS CI TY M. L. M cCLURE, Chairman and Federal Reserve Agent A. M. McADAMS, Assistanr Federal R eserve Agent and Secret ary P. W. MoRGAN, Director of Research Vol. 15 K A NSA S CITY, Mo., ONDITIONS for farm crops in t he T enth F ederal Reserve District improved m ateri ally during J une, due to beneficial rains, about the right proportion of sunshine and cloudiness, and seasonally high temperatures for maturing winter wheat, rye, oats and barley, and for growth and cultivation of corn, cotton and other fall crops. The harvest of winter wheat made rapid progress during J une and at the end of the month was under full headway over the large producing areas of this District. E arly harvest returns revealed a somewhat spotted crop. Sections where wheat was injured by killing cold last winter, dry weather in early spring, or later storms and insect pests, reported yields varying fro m poor to fair. Other sections, where wheat fared better, reported yields were higher than early expectations, in some areas up to previous high records. The better conditions and prospects for farm production was reflected in a slight expansion in business activity throughout this regional district, as compared with that witnessed in the earlier months of the year. Still, the general volume of business was nearly 7 percent below that of a year ago, but 3 percent above that of two years ago. Distribution of merchandise by ret ailers to consumers, evidenced by complete statistics of department store sales for May, held close to the sales volume for April, and for the second month of 1930 was slightly above that for the corresponding month in 1929. Wholesale trade exhibited about the customary May slackening, with total sales for the month about 8 percent below the previous May. Marketings of wheat were smaller in M ay than a year ago , but larger for all other classes of gr ai n. The new wheat crop began to move into market channels early in J une and by the end of the month receipts at primary markets were heavy and increasing day by day. Movements of all classes of livestock to markets were in smaller numbers than in the same month last year. Manufacturing and mineral industries made a much better showing for M ay than for any preceding month this year. The output of flour, petroleum, soft coal, cement, sales and shipments of lead and zinc ore, and the slaughter of cattle, calves and hogs showed increases over April. Compared with a year ago, there were increases for this May in the production of cement, shipments of zinc ore, and the slaughter of cattle, calves and sheep. The value of contracts for building and general construction in this District during May was considerably below that for May last year, although total awards of $106,987,518 for the first five month~ of 1930 was nearly 10 percent greater than for the like period in I 929. C JuLY 1, No. 7 1930 THE SITUATION IN THE TENTH F E DERAL RESERVE DISTRICT Statistics for May 1930 Compared to those fo r April 1930 and May 1929 in Percentages of Increase or Decrease (-) May 1930 Compared with Banki~g . .. April 1930 May 1929 Debits m 30 c1t1es------------------------·----·-······-········-·····--·· - 2. 2 - 6.6 Check collections, F . R. Bank.--·--· - 6.2 - 8.6 0.01 Loans, 56 member banks .........-.. ·-·······-··-····-·······-······ - 2.3 0.2 - 6.6 Inves tments, 56 member banks·-··················--··--······ - 0.4 Net demand deposits, 56 member banks·-···-····-····-· - 1.7 1.8 0.9 Time deposits, 56 member banks·-·-········-··········-·····- 0.2 Savings deposits, 50 selected banks·-··- - - 3.2 Savings accounts, 47 selected banks·--········-·····-······ - 0.4 3.9 I.I Life Insurance writ ten_..... ·-·-···-···-···-··-······--·········--···- - 2. 1 T rade 0.2 Retail sales, 37 department stores .. ·-····--·-·-·-············ - 0.5 - 8.2 Wholesalers sales, 5 lead ing lines-- -·······--··-··-·····-·····- - 6.5 - 28.9 Lumber sales, 177 ret ail yards.······-·········-················ - 1 5.5 Grain Receipts, 5 markets - 1.3 Wheat_·····-···············-··-····--·-··-·-····-·········--···········-···-···· -18 .9 8.o Corn·--·-··-·····--·------·-····-···-···········--····-···-··········-····--······ -37.9 107.5 Oats .................. ·-···-···-·······-··-----·-·········---···················-··· -10.0 88.3 21.3 Rye ........ ..... ·-·······-··········-·······-·····-······--·······················Barley ..._........................... -........... -......................._....... . - 15.1 33.o Livestock Receipts, 6 markets - 3.5 Catt le·-·-···-·-·······-··············································-····-······ - 8.4 - 3.6 Calves .... ·-·-·-···--··--·-········-·········-··--·····-···-···-·-···-·-······---· - 8.9 11.3 - 9-9 Hogs ...·-···-············-···-·······-·····-··-···-··········-··-····-···-·-·-··-Sheep._ .......... -....... - - - -34.1 - 7.4 Horses-Mules ............ ·--······-···-··-···-············-···········-·-···· -3 1.7 - 5-3 Production - 3-9 9-3 Flour.·--·······················-·····--····-----···········-···-·-····--·--······· 6. 5 - 1.9 Crude petroleum ......... -·············-··--··-·············-··-·····-···2.8 - 12.7 CoaL ..... -.-···--··-···········-············---···········-··········-········-··16.6 13.8 Ce men t.·-······---··················-··-·····-·············-·-·····---·····-···· 14-4 0.4 Zinc ore (shipped) .... ·--··-··-··-·········-·······-·-···········-···-·-·· - 43.3 Lead ore (shipped) ...... ············-········-···-·······-·········-···· 45-5 Meat Packing 1.7 1.7 Cattle------··--···-·····--··-··-···········-·····-··-······-····················· 2.6 3.6 Calves .............. ·-·······-···-·-··········--···············-·················Hogs ___ . ___ . __ ._ ...._................... --........ _._ .... _... -... -.. -....... _. __ .. - 6.8 25.1 5.7 SheeP-··-······························--·-···-···············-··-···-··-····-··-·· - 15.6 Construction 28.1 . Contracts awarded·-·····-·········-···-···············-····-·····-···-· - 17.0 - 22.7 Building permits, 20 cities, number·-·-·····-················ - 12.0 - 39.9 Building permits, 20 cities, value ....... ·-·····-··············· - 7.5 Bank Credit A slight increase in the amount of bank credit outstanding during the past month has been indicated from the weekly statements of fifty-six reporting mem ber banks in leading cities of the Tenth District, which show total loans and discounts and investments, combined, amounted to $661,437,000 at the close of business J une I I . While this figure reflects a gain of only 552,000 over a period of four weeks, or since May 14, it is the highest total for any weekly reporting date since January 22, when the amount stood at $662,026,000. However, the June II This Copy Released For Publication In Mornin g Newspaper June 30 THE MONTHLY REVIEW 2 figure is $25,964,000 below the $687,401,000 reported by identical banks for June 12, las t year. At that time the volume of credit was expanding r apidly and approaching the peak of 1929, the highest attained in nine years. An analysis of the consolidated statements of the reporting member banks shows that between May 14 and June II the volume of security loans increased $1,530,000, while loans for commercial and agricultural purposes, classed as "all others,'' decreased $1,462,000. During this period of four weeks the reporting banks increased their investments in bonds, stocks and other securities by $484,000 to a total of $219,106,000, which with the exception of slightly larger holdings on April 23 and June 4, was the largest reported for any week since December 11, last. Demand deposits declined $8,322,000 between May 14 and June II, while time deposits increased $1,635,000 during the same period. The aggregate of bills and securities held by the Federal Reserve B ank of Kansas City and branches on June II was $39,859,955, a decrease of $2,961,180 from that reported May 14, and 13,935,613 less than the amount held on June 12 a year ago. Bills rediscounted for member banks increased 1,052,654 over the four weeks, but were $32,241,513 below the amount held at the corresponding date last year. The amount of acceptances bought in the open market declined by $6,325,334 during the four weeks, but increased $1,069,900 over the year. The aggregate of United States securities held on June II was $2,3II,500 larger than on May 14 and $18,736,000 larger than a year ago. This Bank's statement of June I I showed the Federal Reserve Note circulation declined by $1,574,850 during the four weeks but was $4,184,900 higher than the tctal · a year ago. Total deposits were $3,272,28 I less than four weeks earlier and $1,709,659 less than a year ago. Principal resource and liability items of the reporting banks, and of the Federal Reserve Bank of Kansas City, compiled from weekly statements as of three dates, follow: FIFTY-SIX REPORT! G MEMBER BANKS June II, 1930 May 14, 1930 June 12, 1929 Loans and investments-totaL __ ..... $661,437,000 $660,885,000) $687,401,000 Loans and discounts-total................ 442,331,000 442,263,000 452,792,000 Secured by stocks & bonds............ 146,872,000 145,342,000 121,244,000 All other loans and discounts........ 295,459,000 296,921,000 331,548,000 Investments- total.............................. 219,106,000 218,622,000 234,609,000 U.S. Securities................................ 94,903,000 95,444,000 107,940,000 Other bonds, stocks and securities.. 124,203,000 123,178,000 126,669,000 Reserve with F. R. Bank.................... 55,ou,000 57,746,000 54,557,000 et demand deposits........ .................. 488,468,000 496,790,000 490,509,000 Time deposits·-····································· 181,976,000 180,341,000 178,821,000 Government deposits.......................... 248,oco 643,000 598,000 FEDERAL RESERVE BANK OF KANSAS CITY June 11, 1930 May 14, 1930 June 12, 1929 Total gold reserves .............................. $115,025,458 $115,712,559 $100,244,379 Reserves other than gold.................... 7,700,047 8,022,778 4,757,764 Total reserves...................................... 122,725,505 123,735,337 105,002,163 Bills discounted.................................... 15,771,026 14,718,372 48,012,539 Bills purchased·--································· 5,352,929 11,678,263 4,283,029 U. 5. Securities.................................... I 8,736,,000 16,424,500 1,500,000 Other securities .................................... 42,821,135 Total bills and securities .... ................ 53,795,568 39,859,95 5 211,988,635 206,853,287 Total resourccs ..·-································· 203,164,775 67,279,480 F. R. Notes in circulation ................. . 71,464,380 73,039, 23° 89,231,005 Total deposits ..................................... . 87,521,346 9o,793,6 27 Payments by Check Debits to individual accounts by banks in thirty cities of the Tenth District totaled $1,644,656,000 for the five weeks running through May to and including June 4. This figure indicates a decrease of 2.2 percent from the $1,681,214,000 reported for the preceding five weeks. As there were only twenty-nine banking days in the five weeks ending June 4, against thirty banking days in the preceding five weeks, the daily average debits for the period under review ran 1.2 percent higher than that for the former period. In comparison with the total of,.. $1,761,46!,ooo reported for the corresponding five weeks ending June 5, 1929, the debits for this year's period showed a decrease of $116,805,000 or 6.6 percent. Amounts debited by- banks in four cities exceeded those for the like period last year, while for each of the other twenty-six cities smaller amounts were debited than a year ago. a BANK DEBITS IN THIRTY CITIES OF THE TENTH DISTRICT Percent FIVE WEEKS ENDING Change June 5, 1929 June 4, 1930 Albuquerque, N. M ..·-······················· $ 13,656,000 $ I 5,041,000 - 9.2 Atchison, Kans.................................. 6,610,000 7,152,000 - 7.6 21,174,000 35.3 Bartlesville, Okla·-········--··················· 28,641,000 Casper, Wyo...................................... 8,366,000 8,945,ooo - 6.5 2.4 Cheyenne, Wyo.................................. 7,642,000 7,833,ooo Colorado Springs, Colo.- ................... 18,761,000 19,456,000 - 3.4 225,182,000 - 12.8 Denver, Colo...................................... 196,342,000 Enid, Okla.......................................... I 5,980,000 17,338,000 - 7.8 Fremont, Nebr.................................... 5,039,000 5,455,000 - 7.6 4,136,000 - 8.3 Grand Junction, Colo........................ 3,792,000 3,861,000 - o.8 Guthrie, Okla...................................... 3,831,000 Hutchinson, Kans.............................. 17,462,000 20,373,000 -14.3 14,188,000 - 1 7.3 Independence, Kans.......................... I I,729,000 Joplin, Mo.... ...................................... 12,535,000 17,389,000 -'!.7.9 Kansas City, Kans............................ 22,365,000 23,913,000 - 6.5 Kansas City, Mo................................ 465,767,000 506,843,000 - 8.1 6,011,000 -14.2 Lawrence, Kans.................................. 5,160,000 Lincoln, NebL................................... 39,617,000 43,75°,000 - 9.4 12,621 ,ooo - 7.0 Muskogee, Okla...................... :........... I I,737,000 143,5 27,000 - 0.1 Oklahoma City, Okla........................ 143,389,000 Okmulgee, Okla.................................. 7,925,000 9,938,ooo -20.3 Omaha, Nebr...................................... 239,671,000 248,251,000 - 3.5 4,141,000 -21.3 Parsons, Kans........ ............................ 3,257,000 Pittsburg, Kans.................................. 5,855,000 6,359,ooo - 7.9 21,206,000 3.8 Pueblo, Colo._..................................... 22,017,000 6.1 Salina, Kans........................................ I 5,007,000 14,141,000 St. Joseph, Mo._................................. 54,278,000 64,679,000 -16.1 22,693,000 4.4 Topeka, Kans.--··· ·· ···························· 23,682,000 I.I Tulsa, Okla.-....................................... 168,775,000 I 70,624,000 Wichita, Kans.................................... 65,768,000 75,241,000 -12.6 Total 30 cities, 5 weeks .................. $1,644,656,000 Total 30 cities, 22 weeks.................. 7,491,022,000 $1,761,461,000 7,915,181,000 - 6.6 5.4 Savings in Banks Fifty commercial and savings banks in leading cities of the Tenth District reported savings deposits on June I aggregating $II6,341,170, a decrease of $280,651, or two-tenths of I percent, from $II6,621,821 reported as of May I, and a decrease of $3,865,710 or 3.2 percent from $120,206,880 reported as of June 1, 1929. The number of savings accounts in forty-seven banks was reported as 399,161 on June 1, this number comparing with 400,786 on May I and 384,II4 on June I, 1929. Federal Reserve Bank Clearings Check collections through the Federal Reserve Bank of Kansas City and branches during the four weeks ending June I I showed a decrease of 6. 2 percent from the preceding four weeks and a decrease of 8.6 percent as compared with the corresponding four weeks last year. That the average check passing through this Bank for collection in recent weeks was for a smaller amount than the average a year ago is indicated by the fact that, in spite of the decrease in the aggregate value, the number of checks handled during the last four weeks was greater than that for the corresponding period last year. The summary of the reports follows: Four weeks ending June II, 1930....................... . Four weeks ending May 14, 1930....................... . Four weeks ending June 12, 1929.......................• Amount $76o,716,236 811,037,818 832,652,625 Items 5,338,169 5,450,638 5,300,867 3 THE MONTHLY REVIEW --================================;=;::======== RETAIL TRADE AT 37 DEPARTMENT STORES IN THE TENTH FEDERAL RESERVE DISTRICT SALES STOCKS (RETAIL) Stores May 1930 5 Mo. 1930 Report- compared to compared to ing May 1929 5 Mo. 1929 Kansas City....... . 4 - 3•3 - 6.9 Denver............... . - 1.5 - 4.5 5 Oklahoma City.. 7.8 0.4 3 6.2 3.1 Omaha·---··········· 3 Lincoln ............... . 2 - I.I - 4.8 Topeka ............... . 3 - 6.4 - 3.5 Tulsa. _ _ __ 1.4 - 3.7 4 Wichita............... . 3 - 5.0 -~5 Other Cities ....... . IO 0.4 - I.7 Apr. - - STOCK TURNOVER ACCOUNTS RECEIVABLE May 31, 1930 May 5 Months compared to 30, 1930 May 31, 1929 1930 1929 1930 1929 5.1 - 6.6 .22 ,22 I.08 1,12 4.9 -12.8 . 22 . 19 ·99 .95 2.1 - 3.9 .31 .28 1.38 1.39 - 3.2 2.9 9.1 3.8 4.5 -18.9 - 5.4 - II.2 0.7 - 38 .20 .23 .24 .23 .17 .24 .23 .27 .21 .19 1.12 .87 1.55 ·99 .85 1.61 .85 .80 May 31, 1930 compared to Apr. 30, 1930 May 31, 1929 0.1 1.6 1.4 - 3.o 3.3 7.8 4.0 10.5 I.I 2.2 - 2.7 3.5 16.9 - 1.9 Even ~ 1.0 4.5 Total.................... 37 0.2 - 3.6 - 4.5 - 8.9 .24 .22 I.II 1.08 1.2 NOTE: Percentage of collections in May on accounts April 30, all stores reporting 40.8. Collections same month last year 42.2. Retail Trade Retail trade during May was in moderately heavy volume for the month and season, as indicated by the reports of department stores and single line stores in cities throughout the Tenth District. The combined total sales of thirty-seven department stores reporting for May was a fractional part of I percent less than that for April, and a fractional part of I percent greater than that for May last year. May was the second month of the current year in which sales of these department stores were larger than for the corresponding month in the previous year. The May volume of sales carried the cumulative total for the first five months of the current year to a figure which was 3.6 percent below that for the same period in 1929. May sales of men's apparel at stores reporting were 1.3 percent higher than in May last year, sales of women's apparel showed a decline of 2 percent as compared with sales a year ago, while sales of retail furniture stores were about I percent above those a year ago. Stocks of department stores on May 31 averaged 4. 5 percent lower than on April 30 and 8.9 percent lower than on May 31, 1929. Stocks of men's and women's apparel and furniture were larger at the close of May than a year ago. Collections generally were reported as running slightly behind a year ago, although some improvement was noted during May. Departmen t stores' collections during May represented 40.8 percent of amounts outstanding, compared with 40.3 percent for April and 42.2 percent for May a year ago. Wholesale Trade Wholesale firms at leading distributing centers of the Tenth District, which report their monthly trade statistics to the Federal Reserve Bank of Kansas City, indicated the combined value of their sales during May was about 7 percent smaller than for April and about 8 percent smaller than for the previous May. The May summary of wholesale reports by lines reflects seasonal declines from April in sales of drygoods, furniture, groceries, hardware and drugs. Compared with the volume of sales reported for May 1929, the grocery line was the only one to show an increase for this May, the other four lines reporting decreases ranging from 4.5 percent to 18.4 percent. Inventories at the close of May indicated stocks of whole- COLLECTIONS May 1930 compared to Apr. 1930 May 1929 o.6 - 2.3 3.5 - ·1.9 1.5 5.3 8.8 13.0 - 10.1 7.1 6.o 0.7 14-7 10.0 - 7.1 - 6.7 13.1 10.7 3.3 4.4 1.4 salers in general were further reduced during the month and were considerably smaller for all reporting lin es than a year ago. Business Failures Commercial insolvencies in the Tenth District in May were fewer than in either April of the current year or May of the preceding year. The aggregate of liabilities involved in this year's May failures was smaller than in April but larger than in the same month last year. Dun's report showing the number of failures and the amount of liabilities for May and the first five months of 1930, with comparisons, follows: May 1930.......................................................................... April1930 ......................................................................... May 1929.......................................................................... Five months 1930............................................................ Five months 1929.. .......................................................... Number 107 118 127 627 639 Liabilities '/, 2,263,2!13 2,369,308 1 ,53 2 ,354 11,673,416 7,290,048 Life Insurance New paid-for ordinary life insurance written during May in the seven states whose areas or parts form the Tenth District amounted to$64,203,ooo, which compares with $65,608,000 for April and $63,532,000 for May of last year. Insurance written during the five months of the current year totaled $303,586,000 against 298,491,000 for the like period in 1929. The reports of the Life Insurance Sales Research Bureau show amounts of insurance written in each of the seven states during May and the five months were as follows: May Colorado ................................................................. . $ 6,962,000 9,5 2 3,000 Kansas·--································································· Missouri ................................................................. . 26,368,000 8,544,000 Nebraska·--····························································· New Mexico........................................................... . 1/222,000 Oklahoma................................................................ 10,461,000 Wyoming............................................................... . 1,123,000 Five Months '/, 34,998,ooo 44, 199,000 124,661,000 40,398,000 5,772,000 48,990,000 4,568,000 Total 1930.............................................................. $64,203,000 Total 1929.............................................................. 63,532,000 '/,303,586,000 298,491,000 The Bureau's statement showed Colorado, Kansas and ebraska reported larger amounts of new insurance written in this year's five month period than last year, while Missouri , Oklahoma, ew Mexico and Wyoming reported smaller amounts written. WHOLESALE TRADE IN THE TENTH FEDERAL RESERVE DISTRICT SALES Reporting Stores Dry Goods ..................... . 7 4 Groceries·--····················· Hardware ....................... . 9 6 Furniture ....................... . Drugs ............................. . 6 OoTSTANDINGs May 1930 compared with Apr. 1930 May 1929 - I0.2 - 13.3 - 1.4 6.o - 5• 2 - - 7.2 6.3 - 18.4 - 4.5 8.5 11 May 31, 1930 compared with Apr. 30, 1930 M ay 31, 1929 - 3.6 - 2,2 3.0 8.5 - I.2 8.2 1.4 0.9 - 2.7 - 8.6 COLLE CTIONS May 1930 compared with Apr. 1930 May 1929 - 3.8 - 8.2 - 2.6 8.3 5.4 - 7.9 1.7 - 1 5,5 - 3.0 - 2.7 STOCKS May 31, 1930 compared with Apr. 30, 1930 May 31, 1929 - 3.3 - 23.9 - 5.6 - 16.5 - 2.7 - 6.7 - 3.8 - 3.8 - 1.3 - II.8 THE MONTHLY REVIEW 4 The Crops A WINTER WHEAT crop of 250,412,000 bushels for 1930 in the Tenth Federal Reserve District was indicated by the condition on June 1, according to pre-harvest forecasts and estimates of the United States Department of Agriculture and State Boards of Agriculture. This probable production is 4,894,000 bushels below the 1929 crop, and 7,927,000 bushels below the five year average for 1924 to 1928. Later June reports from over the winter wheat area of this District indicated that, under the highly favorable conditions or the proper filling out of heads and for ripening, winter wheat mproved very materially during the month. However, the final outcome, whether greater or less than the official estimate of 250,412,000 bushels as of June 1, would depend upon the final returns from the harvest, which at the end of the month was 'becoming general over the District. SPRING WHEAT had an early start and was benefited by May rains, but cold weather in the Rocky Mountain regions and over the Upper Great Plains was unfavorable for r apid growth. The June 1 condition of the crop averaged about two points higher than for the same date last year for Colorado, Wyoming and Nebraska, the three leading producers of spring wheat. RYE condition of June 1 indicated production of 5,404,000 bushels in Nebraska, Wyoming, Kansas and Oklahoma, this figure indicating an increase of 691,000 bushels over 1929 production in the four states. OATS AND BARLEY had about an average start and came to June 1 showing a condition close to the usual average for this time of the year. Further improvement was made by both crops during June and with the harvest near at hand, good yields were promised for both crops. CORN: Under more favorable weather conditions the corn crop over the large producing areas of this District made fair to good progress during June, and mid-month reports indicated prospects were more favorable than had previously been reported. Missouri corn was reported as getting an earlier start than during the past four years and showed a condition on June I of 82 percent of normal against 61 percent for June 1, 1929. Stands in that state had been reduced by cut worms, birds and poor seed, while cultivation had been general and most corn acreage was clean. In Kansas the June I condition of corn was rated 77 percent of normal, compared with a June start of 73 percent a year ago, with planting dates averaging a little later than usu al. The state of cultivation averaged good and except for some washing rains in northern counties, stands were about normal and better than expected, with but little replanting necessary. The Nebraska corn outlook, which was reported very poor at the beginning of June, showed little improvement during the early half of the month, with the stand at that time estimated at 82.2 percent of a full stand. The report said: "Weather conditions have held back planting; cool nights have retarded proper growth of corn which had been put into the ground at the WINTER WHEAT CONDITION AND ESTIMATED PODUCTION June I reports ofU. S. Department of Agriculture and State Boards of Agriculture CONDITION ESTIMATED PRODUCTION June 1, '30 June 1, '29 June 1, 1930 May 1, 1930 Final 1929 Percent Percent Bushels Bushels Bushe~ls Colorado................ 77 80 13,549,000 14,475,000 11,994, Kansas.................. 69 78 137,300,000 134,952,000 137,641,000 Missouri................ 71 76 19,500,000 18,000,000 17,200,000 Nebraska.............. 84 86 60,350,000 65,675,000 53,664,000 New Mexico.......... 46 84 1,380,000 3,588,000 4,734,000 Oklahoma.............. 59 76 31,923,000 30,150,000 44,033,000 Wyoming.............. 85 75 1,520,000 1,377,000 1,066,000 Seven States.......... Tenth District...... United States........ 69.2 69.2 71.7 265,522,000 268,217,000 270,332,000 250,412,000 252,517,000 255,3o6,ooo 532,469,000 525,070,000 578,336,000 proper time and near torrential rains have in many cases covered the crop with soil or water or washed it out. The bulk of the corn was not planted until May 25 and one-fourth was planted after June I. Approximately 14 percent of the crop was replanted.'' Corn in Oklahoma was in good condition at the middle of June, according to the weekly crop report of the Government weather bureau. No official estimate of the condition for Oklahoma, Colorado, Wyoming and New Mexico had been announced. COTTO : Reports compiled by the Oklahoma Cotton Exchange on June 10 showed the crop at that time was from ten to fifteen days late in nearly all parts of the state. A general decrease in acreage was shown, varying from 2 percent to 20 percent, or more, a few counties reporting a gain. The report said rainy weather delayed field work and necessary replanting had not been done. In many counties all the cotton for the 1930 crop has not been planted at the middle of June. Grain Movements May arrivals of grain at the principal markets in the Tenth District showed about the usual seasonal declines from the earlier months of the year. In comparison with a year ago, however, this year's May receipts of corn, oats rye and barley all showed substantial increases, while receipts of wheat showed small decrease. May receipts of five classes of grain at the five markets reporting follow: Wheat Oats Rye Corn Barley Bushels Bushels Bushels Bushels Bushels Hutchinson............................ 818,000 16,250 138,750 Kansas City.......................... 3,128,850 2,019,500 666,ooo 10,500 59,200 70,400 Omaha·-································· 704,000 1,099,000 804,000 16,800 26,250 705,000 206,000 6,000 28,6oo 128,700 ~ir~::~::::::::::::::::::::::::::::::: ;:::1: ---- ---- - - - - - - May 1930.............................. 5,226,850 April 1930,_ _ _ _ ············ 6,444,330 May 1929.............................. 5,294,420 5 Months 1930......................36,284,920 5 Months 1929...................... 45,365,610 4,090,950 1,682,000 27,300 6,592,850 1,866,000 14,500 3,786,500 810,500 22,500 37,474,350 7,718,000 141,600 36,069,300 5,214,000 296,100 200,700 236,400 150,850 1,165,200 848,6oo Stocks of wheat in elevators at Kansas City on May 31 totaled 19,603,000 bushels, compared with 16,IIo,000 bushels on the corresponding date last year, according to the Bradstreet report. CO DITION ON JUNE I OF FIELD AND ORCHARD CROPS IN TENTH DISTRICT STATES (From reports of the United States and State Departments of Agriculture.) Winter wheat Spring wheat Oats Barley Tame Hay Apples Peaches 1930 1929 1930 1929 1930 1929 1930 1929 1930 1929 1930 1929 1930 1929 Colorado.................................................. 77 80 87 89 87 91 88 90 82 90 32 79 68 80 K~nsas-:······-------········ 69 78 80 80 78 77 79 84 82 85 35 75 II 75 62 M1ssour1.. .. - - - - - - -- - 71 76 70 78 74 77 78 79 67 85 38 65 Nebraska ........ - - - - ·················· 84 86 92 90 88 93 92 90 93 92 56 80 43 77 New Mexico.----- -············· 46 84 76 89 80 89 71 88 77 89 47 63 25 46 Oklahoma................................................ 59 76 73 73 60 79 83 87 31 58 6 58 Wyoming ................................................ 85 75 91 84 93 89 93 90 89 87 90 United States·- ······································· 71.7 79.6 85.7 84.8 83.2 82 86.4 83.7 77.6 86.6 56.8 66 .6 54.7 Pears 1930 1929 45 82 36 65 30 60 48 75 4o 59 22 63 62.6 58.5 5 THE MONTHLY REVIEW ================================== Stocks in St. Joseph elevators totaled 2,464,000 bushels, against 1,149,000 bushels a year earlier. Omaha reported 3,819,000 bushels of wheat in eleavtors at the end of May, a little more than half the total of 6,456,000 bushels reported one year earlier. Wichita stocks were down to 690,000 bushels, compared with 2,527,000 bushels on the corresponding date last year. Hutchinson, with 1,235,000 bushels, reported but slight change in wheat stocks as compared with a year ago. Flour Milling In the closing weeks of the 1929-1930 wheat year, with the new crop just beginn:ng to move into market channels, flour millers throughout the Southwest devoted their facilities mainly to the cleaning up of old contracts on their books. As a result, May production of flour, totaling 2,240,292 barrels at mills in the Tenth District, was the largest monthly output since last October and, with the exception of May last year, the largest May output of record. A compilation of the weekly reports from the leading milling centers to the Northwestern Miller shows production of flour for the month of M ay as compared with the preceding month and the corresponding month last year as follows: Atchison ................................................... . Kansas City............................................. . Omaha·-····················································· Salina·- - ····················································· St. Joseph ................................................. . Wichita ..................................................... . Outside ...... ............................................... . May 1930 Barrels 1 37,0 52 680,951 III,774 164,7 II III,231 170,800 863,773 April 1930 Barrels 128,214 653,454 108,412 142,899 65,131 140,243 8u,823 Total .......................................................... May 1929 Barrels 142,885 695,958 9o,9 55 161,574 II0,218 172,591 957, 19 1 2,33 1,37 2 Livestock Livestock on farms and ranges throughout the Tenth District were reported in very good condition on June 1, due to favorable weather, a better than average supply of moisture, plenty of dry feed, and generally good grazing. Stockmen throughout the District, and in the range country in particular, reported both calf and lamb crops were unusually good this spring. Except in limited sections where there was some mortality on account of wet and cool weather, losses of calves and lambs were very light and below the average for the spring season. Demand for stock cattle in the range country was reported light, although a considerable number changed hands. The number of cattle moved into the long grass pastures in the Flint Hills of Kansas and the Osage Country of Oklahoma from January I to June I totaled 501,000 head, compared with 509,000 head in the like period in 1929 and the five-year average Kansas City................................ Omaha ........................................ St. Joseph.................................... Denver........................................ Oklahoma City.......................... Wichit ··--------------------- Cattle 107,840 I 14,539 32,756 44,171 13,397 19,544 of 484,000 head, according to the State=and_Federal_Crop:and Livestock reporting service. There were no reports of contracting of lambs. Wool sales were limited, with prices ranging from 18 to 24 cents, although a number of growers consigned their product to wool marketing associations. Announcement by the secretary of the National cooperative marketing association, on June 1, was to the effect that about 47,000,000 pounds of wool had been contracted by various Rocky Mountain, Pacific Coast and Texas wool growers associations. Of this total 12,823,000 pounds repre~ented Wyoming, Colorado and New Mexico wool. MARKET MOVEMENTS: Receipts of cattle, calves and sheep at the six leading markets in the Tenth District during May were in smaller numbers than in either April or in May last year. The May movement of hogs, while showing a perceptible increase over April, was smaller than in the corresponding month last year. Combined reports show larger numbers of cattle, calves and sheep were received at the six markets during the first five months of I 930 than were received during the like period in I 929. Receipts of hogs during this year's five-month period, however, were 9. 2 percent below those for last year's first five months. Receipts of horses and mules at these markets, totaling 4,829 for May, were 2,240 head less than in April and 270 head less than in Mav a year ago. This year's receipts of horses and mules from J an;ary I to May JI totaled 73,734 head, or 6,705 more than received in the like period last year. PRICES: Under unusually light receipts for this time of the year prices for most classes of cattle at the close of May were higher than at the close of April. However, this year's May top prices on all classes of meat animals were lower than for May last year. And the first three weeks of June witnessed further declines in livestock prices. Meat Packing Purchases of cattle and calves for slaughter at packing establishments at the six leading centers of the District during May were in greater numbers than in the month of April of this year or the month of M ay last year. The May slaughter of sheep, while somewhat sm aller than that for April, showed a moderate increase over the previous May and was the largest of record for the fifth month. More liberal receipts of hogs reflected a substantial increase over April in the slaughter of hogs at the various p acking centers, although the month's total fell nearly 7 percent short of the total slaughter for May 1929. MAY MOVEMENT OF LIVESTOCK IN THE TENTH DISTRICT RECEIPTS STOCKERS AN D FEEDERS Calves Hogs Sheep Cattle Calves Hogs Sheep 21,902 318,968 146,403 26,238 3,168 8,460 8,307 255, 154 II,246 4,745 1,520 3° 2,443 7II 3 1,7 13 6,074 145,282 2 ,753 1,161 13,723 136,957 779 4,012 66,724 26,648 2,000 34,235 1,421 , 3,498 31,910 2,289 5,737 5,168 68,693 7,994 May 1930.................................... 33 2, 247 47,638 April 1930·-- ······························· 362,689 52,301 May 1929.................................... 344,239 49,443 5 Months 1930.......................... 1,813,564 2 57,708 5 Months 1929·--·-····················· 1,695,205 244,9 24 *Includes II8,137 hogs direct to packers' yards. • 893,206 623,846 802,125 946,020 991,101 673,608 4,626,050 3,87o,745 5,094, 1 52 3,567,2 37 66,885 77,997 89,096 408,183 34 1 ,7°9 8,156 9,433 8,357 49,206 37, 107 13,141 17,084 16,460 71,674 100,483 55, 164 86,050 88,1 67 333,800 478,880 PURCHASED FOR SLAUGHTER Cattle lCalves Hogs Sheep 56,326 17,256 * 249,431 122,589 74,690 4,034 227,345 187,56o 25,486 5,256 108,243 125,230 ro,100 2,176 [27,417 16,918 8,799 4,815 26,249 2,083 6,020 1,528 65,781 7,766 181,421 178,464 178,362 910,633 942,252 35,065 34,181 33,830 168,557 176,095 704,466 462,146 547,454 756,048 437,174 2,425,081 3,285,824 3,936,869 2,002,975 563,307 6 THE MONTHLY REVIEW Petroleum The month of May witnessed a further increase in the production of crude petroleum in fields of the Tenth District. The daily average output for the 31-d ay month was 867,600 barrels, an increase of 26,600 barrels per d ay over the average for the thirty days of April, but 17,000 barrels per day below the average for the thirty-one days of May 1929. Daily average production in Kansas, Wyoming and New Mexico was larger in May than in the same month last year, while Oklahoma and Colorado reported smaller daily production than for the pr~vious May. The record of production follows: DAILY AVERAGE PRODUCTION *May 1930 April 1930 Barrels Barrels Oklahoma .......................................... 663,300 655,000 131,000 117,000 Kansas·--············································· Wyoming.................. - ........................ fl,000 52,000 Colorado ............................................. . 4,000 4,5 00 New Mexico ....................................... . 16,800 13,000 May 1929 Barrels 701,400 122,400 50,6oo 7,100 3,100 Total.................................................... 867,6oo GROSS PRODUCTIO *May 1930 April 1930 Barrels Barrels Oklahoma............................................ 20,562,000 19,651,000 Kansas._ .............................................. . 4,063,000 3,498,000 Wyoming ........................................... . 1,557,000 1,607,000 Colorado............................................. . 140,000 134,000 New Mexico ...................... _ _ __ 400,000 521,000 884,6oo May 1929 Barrels 21,743,000 3,793,000 1,568,000 221,000 96,000 26,893,000 *Estimated, American Petroleum Institute. Total.................................................... 1 Field developments, with complete returns for May now available, were slightly less active than in April. However, there were increases over May 1929 of nearly 15 percent in the number of new wells completed and 330 percent in the number of barrels daily new production from wells completed. Fewer dry wells and gas wells were reported among the May completions than in either the preceding month or the corresponding month last year. At the opening of June the number of wells in process of drilling was the smallest reported since July 1, 1928. The field summary follows: Wells Completed Oklahoma............................ 316 108 Kansas·--····························· Wyoming............................ 5 Colorado .............................. 4 6 New Mexico ........................ May 1930............................ April 1930............................ May 1929............................ 5 Months 1930.................... 5 Months 1929.................... 439 47° 382 2,020 2,020 Barrels D aily Dry Gas Rigs-Wells ew Production Wells Wells Drilling 303,203 'l.7 94 837 6 268 53,295 34 135 0 136 3 0 l 3 94 0 72 109 4 356,7o5 138 150 146 57 2,798 82,929 2,188,135 503,208 653 769 34 44 37 199 171 1,444 1,556 1,623 Reports for Oklahoma and Kansas showing the number of refineries in operation and daily runs of crude oil to refinery stills follows: June 1, 1930 May Refineries operating, number .......... Daily runs to stills, barrels.............. 1, 1930 56 59 317,750 317,650 June 1, 1929 60 32 3,2 55 Zinc and Lead A slight seasonal increase in sales of zinc and lead ore during May was reported for the Tristate District which embraces Missouri, Kansas and Oklahoma. Shipments of zinc ore during the four weeks ending May 31 were 14.4 percent above those for the preceding four weeks and a fractional part of I percent above those for the corresponding period last year. Shipments of lead ore increased 45.5 percent over the preceding four weeks, but still were 43.3 percent below those for the same period last~year. There were further declines during May in zin( ore prices, with $31 per ton as the average for the last two weeks comparing with $44 per ton a year ago. Lead ore, which had been selling at $62.50 per ton for several weeks, rose to $65 per ton in the closing week, against $90 per ton in May last year. The tonnage and value of zinc and lead ores shipped in the Tristate District follow: Zrnc ORE LEAD ORE Tons Value Tons Value Oklahoma ................................................ 24,547 805,015 3,214 202,706 894 56,608 Kansas·--················································· 14,216 470,914 Missouri.................................................. 497 16,177 132 8,343 4 Wks. ending May 31, 1930.............. 39,260 4 Wks. ending May 3, 1930·--··········· 34,319 4 Wks. ending June 1, 1929·-············· 39,098 22 Wks. ending May 31, 1930·--·········204,415 22 Wks. ending June 1, 1929·--···········'275,144 f, 1,292,106 1,210,165 1,720,312 7,214,491 11,526,819 4,'l.40 2,914 7,474 20,644 49,835 1, 267,657 184,102 672,66o 1,433,6o1 4,66o,o69 Bituminous Coal Productive activity at the soft coal mines in the six producing states of this District averaged slightly higher for May than for April but somewhat lower than a year ago. Total production of 1,454,000 tons during the month was 2.8 percent above that for April and 12.7 percent below that for May a year ago. The production figures by states, follow: Colorado ............................................. . Kansas·--············································· Missouri .............................................. New Mexico ....................................... . Oklahoma ........................................... . Wyoming........................................... . Total.............................. _ _ __ *May 1930 Tons 473,000 129,000 229,000 144,000 112,000 367,000 April 1930 Tons 387,000 141,000 254,000 140,000 122,000 370,000 May 1929 Tons 539,ooo 136,000 238,000 200,000 143,000 410,000 1,454,000 1,414,000 1,666,000 *Estimated. Total production of soft coal during the present calander year to June 7 (approximately 135 working days) amounted to 205,073,000 net tons compared with 226,455,000 net tons for the similar period in I 929. Cement The production of Portland cement at mills in the Tenth District made further increase during May, both as compared with the earlier months of the year and with May a year ago. May shipments also were larger than in the preceding month or the same month in 1929, while stocks of cement on hand at the close of May were larger than one month ago or one year ago. The summary: May 1930 Barrels Production................................................ 1,685,ooo Shipmen ts.................................................. 1,673,000 Stocks, end of month.............................. 2,389,000 April 1930 Barrels 1,446,000 1,527,000 2,377,000 May 1929 Barrels 1,480,000 1,341,000 2,048,000 The Portland cement industry in the United States in May produced 17,271,000 barrels, shipped 17,210,000 barrels from the mills and had in stocks at the end of May, 30,928,000 barrels, according to the United States Bureau of Mines, Department of Commerce. The production of Portland cement showed an increase of 6.9 percent and shipments an increase of 3 percent as compared with May 1929. Portland cement stocks at the mills were 4.4 percent higher than a year ago. Lumber Sales of lumber at 177 retail yards in the Tenth District during May totaled 4,749,000 board feet, compared with 5,6n,ooo feet in April, and 6,682,000 feet in May 1929. Stocks of lumber 7 THE MoNTHLY REvIEw = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = =' at the close of May at the reporting yards aggregated 44,241,000 BUILDING PERMITS IN TWENTH CITIES OF THE TENTH DISTRICT PERMITS E snMATED CosT feet, against 43,668,000 feet at the close of April and 48,037,000 1930 1929 1930 1929 at the close of May last year. The May business of the reporting Albuquerque, N. M ........................... . 61 i 131,251 $ 421,842 99 yards is here compared with that for the preceding month and the corresponding month last year in percentages of increase or decrease: Sales of lumber, board feet ........................................... ~ Sales of all materials, dollars......................................... . Stocks of lumber, board feet .......................................... Outstandings, end of month ......................................... . Collections during month·-············································· May 1930 Compared to April 1930 May 1929 -15.5 - 28.9 - 8.3 -21.4 1.3 - 7.9 4.0 - 9.0 6.2 -17.3 The lumber movement in the United States continues to run considerably behind that for last year, according to weekly reports of the several softwoods and hardwoods associations to the National Lumber Manufacturers Association. Reports of identical mills of all associations for the first twenty-two weeks of 1930 show aggregate production of 6,888,516 M. feet, a decrease of 11 percent from the 7,715,622 M. feet produced during the like period of 1929. Shipments for the twenty-two weeks period were 6,525,077 M. feet against 7,955,875 M. feet last year, while orders received totaled 6,431,376 M. feet against 8,047,922 M. feet last year. 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....................................... . Salina, Kans....................................... . Shawnee, Okla ................................... . St. Joseph, Mo................................... . Topeka, Kans __ .................................. . Tulsa, Okla·-··································•···· Wichita, Kans ................................... . 4 21 62 57° 30 33 75 199 50 23 293 107 II2 20 18 58 63 207 159 42 64 7°9 38 22 97 209 130 14 3 13 126 150 19 53 78 118 33° 268 May, 20 cities.-................................... 5 Months, 20 cities.. .......................... 2,203 9,709 2,852 II,654 1,900 30,675 64,675 741,100 4 2,430 2 19,556 174,165 2,026,250 416,760 18,185 2,347,84I 554,364 46,225 52,850 22,975 64,563 347,n9 839/265 61 7,968 11 5,200 60,875 I I I ,270 5,533,000 10 5,733 36,375 341,550 1,653,350 297,015 46,170 2 ,647,335 504,280 I 17,412 IIo,460 107,662 161,360 128,665 1,359,204 831,351 $ 8,760,n7 $14,580,109 36,739,9I4 45,908,675 Business Conditions in the United States By the Federal Reserve Board Building The value of building ontracts awarded in the Tenth District during May amounted to $17,216,399, according to statistics compiled by the F. W. Dodge Corporation. This figure indicates a decrease of $3,538,073 from the April awards, and a decrease of $6,739,035 from the awards for the previous May. As in former months of the present year, the May awards for residential construction were markedly smaller than for the corresponding months last year. Total residential awards for this May were $3,385,148 compared with $7,402,324 for the previous May,~the decrease amounting to $4,017,176. Building contracts awarded in the District during the five months of 1930 amounted to $106,937,518, according to the Dodge reports."'f This figure compares with $97,715,899 for the corresponding five months in 1929, and indicates an increase for this year of $9,221,619 or 9.4 percent. Building permits issued in twenty cities of this District during May were for new building projects exstimated to cost '$8,760,II7, according to official statistics reported to this Bank. This May figure, on the value of building permits issued, is 7.5 percent below the total of $9,473,429 reported for April, and 39.9 percent below therhigh-record to tal of $14,580,109 reported for May 1929. The reports of the twenty cities, which are presented in detail in the accompanying table, show the value of buildings for which permits were issued during May was larger for five cities and smaller for fifteen cities than reported for May last year. The major part of the decrease in the value, .as compared with a year ago, is accounted for by the fact that Denver's quite extensive city building program for 1929 was launched in May of that year. The record for the first five months of 1930 shows the cumulative value of permits issued in the twenty cities to have been $36,739,914, which is 20 percent below the $45,908,675 reported for the like period in 1929. The volume of industrial production declined in May by about the same amount as it increased in April. Factory employment decreased more than is usual at this season and the downward movement of prices continued. Money rates eased further to the lowest level in more than five years. INDUSTRIAL PRODUCTION AND EMPLOYMENTThe Board's index of industrial production, adjusted for usual seasonal variations, declined about 2 percent in May. In 1930 industrial prpduction has fluctuated between 4 and 7 percent above the . 1923-25 average, and the preliminary estimate for May is 4 percent above the average for those years.. Production at steel and automobile plants declined, cotton mills curtailed output, and activity at woolen and silk mills continued at low levels. Cement production increased sharply, while output of petroleum and copper showed little change. In the first half of June, output at steel plants declined further. The decrease in factory employment in May was larger than usual and there was also a decline in factory payrolls. The number employed in the cotton and silk goods industries decreasPER CENT PER CENT 140 INDUSTRIAL P:1CDUCTION 140 801-----+--- - - + - - - - - + - - - - - + - - - --180 60 """"~---'-------'------'----..__-~··✓~ 50 19)0 1928 1926 1927 Index numbers of manufactures and minerals combined, adjusted for seasonal variations, (1923-1925 average 100). Latest figure May, 104. ."'\ 8 THE MONTHLY REVIEW PERCENT PER CENT 120 WHOLESALE PRICES 120 110 1------+-- - - - - + - - - - + - - - - - - - + - - - - - - 1 110 BO i.,_,_, _ _ _...J..__ _ _ _ ...,__ _ ____,__ _ _ _;__~-----.J 80 1930 1929 1928 1927 1926 Index of United States Bureau of Labor Statistics (1926 equal 100, base adopted by Bureau). Latest figure, May, 89.1. ed further, while in the woolen goods industry there was an increase from the extreme low point of April. Employment in the agricultural implement and electrical machinery industries decreased from April but remained large relative to earlier years. Employment in the cement industries increased, but in the lumber industry continued at an unusually low level. Building contract awards in May, as reported by the F. W. Dodge Corporation, continued to be in substantially smaller volume than in any other year since 1924. DISTRIBUTION: Freight car loadings increased by less than the usual seasonal amount during May and continued to be in somewhat smaller volume than in the corresponding period of 1928 and substantially below the unusually active period of 1929. Department store sales in May were approximately the same as those a. year ago. WHOLESALE PRICES: A further decline in the wholesale prices of commodities occured in May and the first half of Jun . The downward movement was interrupted in the last half of May by substantial increases in the prices of grains, BILLIONS 10 OF DOLLARS BILLIONS OF DOLLAR S MEMBER BANI( CREDIT 10 9 9 8 8 7 7 6 6 5 5 1926 1927 1928 1929 1930 Monthly averages of weekly figures for reporting member banks in leading cities. Latest figure:, are averages of first two weeks in June. meats, and livestock, but became pronounced about the middle of June when the prices of cotton, silk, rubber, copper, and silver reached exceptionally low levels. Wheat, meats, livestock and cotton textiles also declined in price at that time, while prices of wool and woolen goods, pigiron, and steel showed little change. BANK CREDIT: Loans and investments of reporting member banks increased further, by $265,000,000, in the four weeks ending June 11 to a level considerably higher than a year ago. The increase was entirely in investments and in loans on securities, of which a large part represented loans made by New York City banks to brokers and dealers in securities in replacement of loans withdrawn by other lenders. "All other" loans continued to decline and at $8,400,000,000 on June 1 I, were the smallest since 1926. Expansion of member bank credit during this period was reflected in larger demand deposits and an increase of $30,000,000 in member bank reserves at the reserve banks. The volume of PER CENT PER CENT 7 MONEY RATES IN NEW YORK 7 6 6 6 5 4 't 3 3 _ Commerc10/ Poper /?ale li'esernJ Bonk Discounl Rote --- Acce1Jlonce Role 2 · 1926 1927 1928 1929 1930 Monthly rates in the open market in New York: Commercial paper rate on 4 to 6 month paper; acceptance rate on 90-day bankers' acceptances. Latest figures are averages of first 20 days in June. money in circulation showed a net increase of $13,000,000. Funds for these uses were obtained largely from further additions of $24,000,000 to the stock of monetary gold and from an increase of $22,000,000 in the volume of reserve Bank credit outstanding. Reserve Bank holdings of U. S. securities increased by about $50,000,000 and their holdings of acceptances declined by about half this amount. For the week ending June 18, the total volume of reserve Bank credit declined somewhat and there was a decline in the volume of money in circulation. MONEY RATES in the open market continued to decline during the latter half of May and the first half of June, and at the middle of the month commercial paper at 3½ to 3¾ percent, and acceptances at 2½ percent, were at the lowest levels since 1924 and early 1925. Bond yi~lds moved slightly lower in June. In the first week of June the rediscount rate at Cleveland was reduced from 4 to 3½ percent. In the third week the rate at New York was reduced from 3 to 2½ percent, and the rate at Chicago from 4 to 3½ percent.
@FedFRASER