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THE MONTHLY REVIEW OJ Agricultural, I ndustria!, Trade and Financial Conditions in the Tenth Federal Reserve District FEDERAL RESERVE BANK OF CI TY M. L. McCLURE, Chairman and Federal Reserve Agent :\. M. McADAMS, Assistant Federal Reserve Agent and Secretary Vol. 16 W KANSAS CITY, Mo.~ HEAT harvest commenced in the southern part of the District about June 15 and the June 1 estimates of the United States Department of Agriculture, although slightly lower than the May 1 estimates, placed this year's Tenth District crop above that of last year and the fiveyear average. Labor was reported plentiful, with little or no outside help needed for harvest. Early threshing returns indicate yields equalling expectations, and the wheat of good quality. Oats and rye prospects are good. Corn and cotton planting are completed, and fields are reported clean but some replanting was made necessary because of cut worm damage. Tenth District commodity prices continued to decline in May. Grain prices held steady throughout the month, but wheat was somewhat lower by June 2.3, selling at the lowest price in thirty-five years. Livestock prices declined sharply the Jatter part of the month, cattle reaching the lowest level since 19u and hogs the lowest level since 1908. During the first two weeks in June there was a sharp upturn in market quotations on cattle and hogs but sheep were lower. Prices of butter, eggs, and poultry were unchanged to lower, fluctuating narrowly throughout the month. There was a slight increase in flour prices at the close of the month but millfeed prices were lower. On June 1, posted prices for crude oil were reduced 44 percent, on the average, to the lowest level since 1909, and resulted in lower quotations on refined products. Zinc ore increased $1 per ton during the month, but lead ore declined $5 per ton. By June 1 cold storage holdings of meats other than pork, and of lard, eggs, poultry, butter, and cheese were below those of one year ago, and stocks of beef, poultry, lard, eggs, and cheese were below the June 1 five-year average. Reports also indicate less livestock on feed June 1 than on the corresponding date in 1930, with replacement costs and feed costs lower than a year ago. Department store trade in May was seasonally smaller than in April and the dollar volume was 9.6 percent less than in May, 1930. Five wholesale lines, drygoods, groceries, hardware, furniture, and drugs, reported their May sales as slightly less than in the preceding month, and somewhat less than in May, 1930. Retailers' stocks were smaller on May 31 than one month or one year earlier. Wholesalers' stocks were increased slightly during the month, but were smaller than a year ago. Department stores reported collections during May were less than one month or one year earlier. Mineral production in May in all lines except cement, which was seasonally larger than in April, was less than in the preceding month or the corresponding month last year. Building operations were at a standstill, the value of permits issued in Tenth District cities being the smallest May total reported in the twelve years for which records have been compiled. l To . JuLY 1, 1931 7 BUSINESS IN THE TENTH FEDERAL RESERVE DISTRICT Percentages of Increase or Decrease (-), for May 1931 over April 1931 and May 1930, and for the first five months of 1931 over the like period in 1930. May 1931 5 Months 1931 Compared to Compared to Banking April 1931 May 1930 5 Months 1930 Payments by check, 29 cities _________________. 5.4 - 21.0 - 20.6 Federal Reserve Bank clearings----·-------· 6.1 - 21.4 - 17.6 Business failures, number ____ ·--·--'·--------·--- 5.8 5.6 2.4 Business failures, liabilities-·--·--------··---·--· 255.2 101.5 5.3 Loans, 56 member banks---------------·-·-----0.3 - 16.7 Investments, 56 member banks-----·-------0.4 21.9 Net demand deposits, 56 member banks 2.4 9.5 Time deposits, 56 member banks _________. 0.1 12.9 Savings deposits, 50 selected banks ______. 0.7 8.6 Savings accounts, 47 selected banks______ 0.3 5.6 Distribution Wholesalers' sales, 5 lines combined_ ..... - 18.8 - 1S.7 5.2 Retailers' sales, 37 department stores_... 9.6 3.8 7.3 - 28.0 1.6 - 30.1 Lumber sales, 172 retail yards ......-.... ··-·Construction Building contracts awarded, value. __.____ _ 6.5 Building permits in 18 cities, value.. ____ _ 7.3 Grain receipts, 5 markets 80.0 247.6 98.1 Whea~-----·---···· .............................. Corn ...___________ 1 7·4 - 16.3 - 43.7 Oats.·---··---............................................. -.... - 40.0 - 65.8 - 42.4 18.3 Rye ..................·-··········· ... ·... ·....................... 30.1 37.7 - 49.0 7.3 BarleY---·······-·······.. ·················· ... 75.3 Kafi.r .......... _...................._....... --··-·· .. ··········· - 31.9 - 53.3 - 54.1 Livestock receipts, 6 markets Cattle .............. _ _ _ _ ..................... 5.2 0.4 6.3 Calves.-......._............................................... 3.3 - 20.3 - 19.0 1 13.1 - 10.3 Hogs ............... ·-···-···.. ···............................... 3·7 Sheep .............. _...................................._..... . - 21.5 27.0 2.3 Horses and mules ...................................... - 33.o 3.0 - 38.0 Production 6.1 - 18.8 - 8.1 Flour ............................... ·-·-·-····· .. ······.... ··-· O.I 1 3·5 II.O Crude petroleum ....................................... . 1 Soft coal-............................................ _..... . 21.2 9.4 5·5 Zinc ore (shipped) Tristate District.. ... . - 42.6 42.1 - 59.8 - 66.6 Lead ore (shipped) Tristate District... .. . - 34.7 - 37.7 70.2 - 7.8 - 26.8 Cement ..·-·······-··· ....................................... . Meat packing, 6 cities Cattle .......................................................... 6.4 3.2 1.5 1.6 - 16.2 - 12.'2 Calves·-············· .. ·..................................... . 13.6 - 13.6 - 3.1 Hogs ...............................·-···· .... ·................. . - 10.2 Sheep.......................................................... 9.3 3.7 - - Banking and Credit Condition statements of fifty-six reporting member banks in selected cities of this District as of June 10, 1931 reflect a slight increase in loans and discounts and investments, and a slight decrease in net demand deposits and time deposits since May 13. Compared with the combined statements of the same fifty-six banks for the corresponding date in 1930, there was a decrease This Copy Released For Publication In Morning Newspaper June 29. THE MoNTHLY REvIEw of 16.7 percent in loans and discounts, with loans secured by stocks and bonds decreasing 30.8 percent anc1 "all other" loans decreasing 9.7 percent. Investmen ts increased 2.1.9 percent during the year, there being a 2.0.0 percent increase in investments in United States securities and 2.3.4 percent increase in holdings of other bonds, stocks, and securities. Net demand deposits decreased 9.5 percent in the fifty-two weeks, but time deposits increased 12.. 9 percent. The principal resource ancl liability items of these reporting banks are herewith presented for June 10, with comparisons: 1931 1635,548,000 368,401,000 101,617,000 266,784,000 267,147,000 l 13,892,000 I 53,255,000 51,908,000 442,216,000 205,522,000 172,000 June Loans and investments-total.. Loans and discounts-totaL_.. _ Secured by stocks and bonds All other loans and discounts lnvestments-totaL_~.___U. S. securities ........................ Other bonds, stks. and sec .... . Reserve with F . R. bank._........ . Net demand deposits, _ _ __ Time deposits ............................. . Government deposits ................. . 10, May 13, 1931 June II, 1930 '/,633,439,000 367,445,ooo 101,l 50,000 266,295,000 265,994-,ooo n5,770,ooo I 50,224,000 53,448,000 452,956,ooo 205,628,000 2,198,000 $661,437,000 442,33 l ,ooo 146,872,000 295,459,000 219,106,000 94,9o3,ooo l 24,203,000 55,ou,000 488,468,000 181,976,000 248,000 Commercial failures in the Tenth District and the United States, as reported by R. G. Dun and Company, are shown in the following: TENTH DtSTPJCT Number May 1931 ................................. . April 1931.. ...... _ _ _ __ May 1930_ _ _ __ Five months 1931................... . Five months 1930,_ _ __ $ 53,371,212 50,868,135 55,54i,46'2 318,841,721 273,958,281 Reporting banks in twenty-nine selected cities of the Tenth District reported payments by check during the four weeks ended June 3 as 5.4 percent less than in the preceding four weeks, and 2.1.0 percent less than in the corresponding four weeks in 1930. These declines compare with 8.8 percent and 2.1.4 percent, respectively, for the United States as a whole. This was the seventh consecutive period to show a decrease from the preceding period and the third consecutive period for which each of the twenty-nine cities reported a decrease from the corresponding period last year. PAYMENTS BY CHECK f, Okmulgee, Okla ...................... . Omaha, Nebr.......................... . Pittsburg, Kans. _ _ __ Pueblo, Colo ..- ........................ . Salina, Kans ............................ . St. Joseph, Mo .. _.................... . Topeka, Kans.·--····················· Tulsa, Okl~- - Wichita, Kans ....................... .. FouR WEEKS ENDED June 3, 1931 June 4, 1930 10,082,000 f, I l ,579,000 Percent Change 5,260,000 24,529,000 6,592,000 5,783,ooo 14,244,000 149,709,000 13,010,000 3,647,000 2,856,000 2,954,000 13,249,000 9,418,000 9,952,000 17,833,000 362,930,000 4,084,000 30,657,000 9,344,000 III,I34,ooo 6,430,000 186,742,000 4,520,000 16,825,000 10,715,000 43,026,000 18,234,000 135,261,000 51,356,000 -3 1 .7 3,591,000 14,947,000 5,199,000 5,7 19,000 12,3o6,ooo 129,858,000 8,610,000 3,002,000 2,403,000 1,580,000 10,670,000 5,463,000 6,630,000 12,800,000 304,809,000 3,680,000 26,059,000 6,831,000 82,250,000 2,878,000 l 57,883,000 3,434,000 14,235,000 8,784,000 33,240,000 14,707,000 81,163,000 39,588,000 Total 29 cities, 4 weeks.......... 1, 1,012,401,000 Total 29 cities, 22 weeks ...... .. 5,939,314,000 United States, 4 weeks.--....... 4 2,959,528,000 United States, 22 weeks..·--·-· 243,219,263,000 $ 1,281,873,000 7,476,825,000 54,639,254,000 328,831,465,000 -12.9 - 39.I -21.l - I.I -13.6 -13.3 -33.8 - 1 7.7 - 1 5.9 -46.5 - 1 9.5 -42.0 -33.4 -28.2 -16.0 - 9.9 -15.0 -26.9 -26.0 -55. 2 - 1 5.5 -24.0 - 1 5.4 -18.0 -22.7 - 1 9.3 - 40.0 -22.9 -21.0 -20.6 -21.4 - 26.0 Reserve Bank Clearings Business Failures There were fewer business failures in the Tenth District in May than in the preceding month, which is in accord with the seasonal trend, but the amount of liabilities involved in May failures was unusually large, having been exceeded only twice in the past four years, November, 1930 and September, 1929. There were six more failures in May than in the corresponding month last year, and the amount of liabilities involved was 101.5 percent greater. In the five months of the current year there were '.2.4 percent more failures, but liabilities were 5.3 percent less than in the corresponding five months of 1930. Liabilities 2,248 2,383 2, 179 I3,II4 II,745 $ 4,561,233 1,284,051 2,263,283 II,105,919 n,733,250 Payments By Check The condition statement of the Federal Reserve Bank of Kansas City and branches as of June IO showed the total of Albuquerque, N. M..-............. bills rediscoun ted for member banks was larger and of bills Atchison, Kans _ _ __ purchased smaller than on May 13. Compared to June II, 1930 Bartlesville, Okla.·--··············· Casper, Wyo, _ _ __ there was a decrease of 2.9.6 percent in bills rediscoun tc:d and Cheyenne, Wyo .... _ _ __ an increase of 46.4 percent in bills purchased. Colorado Springs, Colo .. _...... . Total gold reserves, total resources, Federal Reserve notes in Denver, Colo ....... _ _ __ Enid, Okla .............................. . circulation, and total deposits as of June IO were 2.1.5; 9.2.; 12..1 Fremont, Nebr.. - ..................... and 6.4 percent, respectively, smaller than on the corresponding Grand Junction, Colo ............. Guthrie, Okla ......................... .. date last year and slightly smaller than four weeks earlier. Kans .................. . Total bills and securities held by this bank on June 10 were Hutchinson, Independence, Kans .............. . 1.5 percent larger than on May 13 and, due principally to an Joplin, Mo ............................... increase of 80.3 percent in United States securities held, 32..3 Kansas City, Kans ................. Kansas City, Mo .................... . percent larger than on June II, 1930. Lawrence, Kans.·-··················· Principal resource and liability items contained in the Federal Lincoln, Nebr.·-······················· Reserve Bank statement as of th~ dates of comparison, are Muskogee, Okla ....................... Oklahoma City, Okla............ . shown in the following: June 10, 1931 May 13, 1931 June II, 1930 Total gold reserves...................... '/, 90,247,168 1, 93,156,on $n5,025,458 Reserves other than gold.--······· 6,462,108 7,253,376 7,700,047 Total reserves.............................. 96,709,276 100,409,387 122,725,505 Bills discounted·--······················· n,105,532 8,712,5u l 5,771,026 Bills purchased............................ 7,836,312 9,452,781 5,352,929 U. S. securities............................ 33,779,500 33,779,500 18,736,000 Total bills and securities............ 52,721,344 51,944,792 39,859,955 Total resources............................ 184,395,76o 186,310,686 203,164,775 F. R. notes in circulation.......... 62,826,290 63,745,640 71,464,380 Total deposits.............................. 81,889,724 84,136,717 87,521,346 The discount rate of the Federal Reserve Bank of Kansas City, on all classes of paper and all maturities, was reduced from 3¼ percent to 3 percent, effective May 21. II3 120 107 644 629 UNITED STATES Liabilities Number Check collections through the Federal Reserve Bank of Kansas City and branches during May were 4.3 percent smaller in the number of items handled and 6.1 percent smaller in dollar volume than in April. Compared to May, 1930 there was a decrease of 7.4 percent in the number of items handled and '.21 .4 percent in the amount. The figures follow: ITEMS May................. . April ................. . Five months.__ _ 1931 5,423,176 5,666,127 27,283,721 AMOUNT 1930 5,854,125 6,033,121 29,o69,582 1931 1, 685,779,ooo 730,218,000 3,624,08 I ,ooo 1930 $ 872,06o,ooo 881,700,000 -4,396,005,000 3 THE MONTHLY REVIEW RETAIL TRADE AT 37 DEPARTMENT STORES IN THE TENTH FEDERAL RESERVE DISTRICT SALES STOCKS (RETAIL) COLLECTIO NS ACCOUNTS RECEIVABLE Stores STOCK TURNOVER May 1931 5 Months 1931 May 1931 May 31, 1931 May 31, 1931 Report- compared to compared to compared to compared to May compared to 5 Months ing May 1930 5 Months 1930 Apr.30,1931 May 31,1930 1931 1930 1931 1930 Apr.30,1931 May 31,1930 Apr. 1931 M ay 1930 Kansas City ........ .. 4 - 4.1 - 2.6 -4.2 .22 I.12 1.04 -13.8 - 3.0 .24 - 1.7 - 5.7 Denver. ____ .. 5 - 1.6 6.6 - 0.I - 5.0 4.6 - 2.7 - 9.5 .23 .23 I.II 1.03 - 9.3 Oklahoma City...... 3 -13.6 -11.4 - 6.8 -16.9 - 5.1 - 4.0 .29 .31 1.29 1.39 3.1 - 9.5 Omaha.................... 3 -11.4 2.1 - 6.6 - 6.9 4.0 - 3.6 - I.0 - I.0 I.2 - 5.3 .24 1.31 I.12 - 4.6 -14.4 .27 0.9 Lincoln·--··············· 2 3.3 -II.2 .26 - o.8 2.0 - 4.7 - 8.3 - 2.4 -15.2 - 5.6 .23 .96 .91 Topeka·-················· 3 Tulsa...................... 4 -16.6 -10.4 .26 .26 I.44 1.39 I.I -15.0 - 6.5 - 2.5 - 19.9 - 9.5 Wichita.................. 3 - 7.1 -14.6 - 7.9 - 5.0 - 3.4 - 2.9 .25 .19 I.20 I .00 - 8.7 - 9.7 Other Cities. _________ 10 1 -10.6 - 14.0 -13.8 -14.8 - 3.7 - 5.8 4.0 .19 .84 0.7 .19 .85 -r.s Total._··-················· 37 NOTE: - 9.6 - 7.3 - 4.3 -11.8 Savings For the fifth consecutive month there was an increase in both savings accounts and savings deposits in May over the preceding month, as reported by a selected list of banks in this District. Total savings deposits in fifty reporting banks on June 1 were 0.7 percent larger than on May 1 and 8.6 percent larger than on June 1, 1930. Forty-seven banks reported the num her of savings accounts on June 1 as 0.3 percent larger than one month earlier, and 5.6 percent larger than one year earlier. The combined reports, as of the three dates, are given in the following table: June May June I, 1, 1, .25 .24 Percentage of collections in May on accounts April 30, all stores reporting 37.6 Savings Accounts Sav.ings Deposits 47 Banks 50 Banks 439,777 $137,630,422 1931·--········ ·············· ····· ·· ········ ············ 1931 ____ _____ ..... .. ..... ...... ............... .... .... . . 438,479 136,690,814 416,576 126,742,900 1930·-··-·--············································ Trade RETAIL: Department store trade in this District during May declined by about the usual seasonal amount. Thirtyseven stores reported their May sales as 3.8 percent below their April sales and as 9.6 percent less than in May, 1930. Cumulative totals for the five months of the current year reflect a decline in sales for the period of 7.3 percent, as compared to the like period last year. Every reporting city in the District reported smaller sales in May and the five months this year than in the corresponding May and five months of 1930. Stocks of merchandise on hand May 31 were 4.3 percent smaller than one month earlier and 11.8 percent less than one year ago. Every city showed a decrease for the month and for the year. WHOLESALE: Each of the five reporting wholesale lines, drygoods, groceries, hardware, furniture, and drugs, reported their May sales as slightly under their April sales and substantially under sales for May, 1930. Total dollar sales of the five lines combined for May were 5.2 percent less than in the preceding month, and 18.7 percent less than in the corresponding month in 1930. All lines except drygoods reported stocks as of May 31 smaller than on April 30 this year, and May 31 last 0.1 I.II 1.17 - o.8 1.6 - 7.8 Collections same month last year 40.5. year. Wholesalers of drygoods reported their stocks as 1.3 percent larger on May 31 than one month earlier, but 3.6 percent smaller than one year earlier. COLLECTIONS: Collections reported by department stores during May on accounts outstanding at the end of the preceding month, averaged 37.6 percent as compared with 38.6 percent in April, and 40.5 percent in May, 1930. All of the five representative wholesale lines reported theil' outstanding accounts at the close of May, and their collection'-! during May, as below a year ago, the decrease in outstandingii and the decrease in collections being in approximately the same ratio. Crops WINTER WHEAT: The June 1 crop forecast of the United States Department of Agriculture placed the probable yield o f winter_•~wheat in the United States as 649,115,000 bushels, corn pared to the 1930 production of 604,337,000 bushels, and 1L five-year average production of 547,427,000 bushels. The June I condition of winter wheat in every state of thi; District, except Wyoming, was above that of June 1, 1930 or the ten-year average June 1 condition, and a crop in excess of that of 1930 and the five-year average was forecast for all states except Colorado, where the crop will be 2,200,000 bushels less. The June 1 forecasts were slightly under those for May r for all Tenth District states except Colorado and Oklahoma which were unchanged. The estimated production for each of the seven states and th! United States is shown in the following table: WINTER WHEAT CONDITION AND ESTIMATED PRODUCTION (May 1 and June 1 forecasts of the United States Department of Agriculture) CONDITION ESTIMATED PRODUC'fION June 1,'31 June 1,'30 June 1, 1931 May 1, 1931 Final 1930 Percent Percent Bushels Bushels Bushels Colorado___..,.... 80 77 14,400,000 14,400,000 16,632,000 83 69 167,776,000 173,768,000 158,422,000 Kansas.·-··········· Missouri... ........ . 93 71 22,890,000 24,525,000 19,740,000 Nebraska.......... New Mexico .... Oklahoma _____.. Wyoming......... . Seven States .... United States .. 85 89 46 57,960,000 6,300,000 84 59 52,500,000 6,475,000 52,500,000 81 85 1,814,000 1,930,000 84.2 84.3 84 61,180,000 70,267,000 1,361,000 33,696,000 1,605,000 323,640,000 334,778,000 301,723,000 649,115,000 652,902,000 604,337,000 WHOLESALE TRADE IN THE TENTH FEDERAL RESERVE DISTRICT OUTSTANDINGS COLLECTIONS SALES May 31, 1931 compared to Reporting May 1931 compared to May 1931 compared to Stores Apr. 30, 1931 May 31, 1930 Apr. 1931 May 1930 Apr. 1931 May 1930 Dry Goods.................................. 5 1.2 -12.4 - 3.8 - 9.1 - 8.5 - 5.9 Groceries.................................... S 2.8 - 0.5 - 2.3 -12.7 - 3.7 - 9.5 - 0.5 -11.9 - 7.2 -27.2 2.5 -29.4 Hardware·- ······· ·························· 9 Furniture.................................... 6 - 9.2 -33.8 - 2.8 -35.7 - 5.3 -38.l - 2.2 -17.6 Drugs.......................................... 6 - 1.3 -14.2 - 4.5 -14.5 STOCKS May 31, 1931 compared to Apr. 30, 1931 M ay 31, 193 1.3 - 3.6 - 7.0 - 1.7 - 5.6 -13.8 - 5.6 -37.5 - 2.7 -18.7 1 > THE MoNTHLv REVIEW 4 PERCENTAGE OF CONDITION OF LEADING FIELD AND ORCHARD CROPS IN TENTH DISTRICT STATES ON JUNE 1, 1931 AND 1930 (From reports of the United Stales Department of Agriculture) Winter Wheat Spring Wheat Oats Rye Barley Tame Hay Wild Hay Apples Peaches 1931 1930 1931 1930 1931 1930 1931 1930 1931 10 yr.av. 1931 10 yr. av. 1931 10 yr. av. 1931 ro yr. av. 1931 1930 Colorado .. ......................... . So 77 84 87 87 87 83 83 85 88 80 91 85 91 62 81 88 73 Kansas ................................ 83 69 80 80 85 78 88 78 77 79 82 81 84 83 66 56 59 39 85 70 88 74 90 83 88 78 79 78 83 84 84 57 88 45 71 Missouri·-··························· 93 Nebrask...__ _ _ __ 85 84 77 92 85 88 79 92 82 92 So 85 76 86 52 62 39 46 46 91 76 88 80 89 67 88 71 85 85 90 82 62 60 45 37 New Mexico ...·-················ 89 Oklahoma........- - - 84 84 73 83 60 81 6o 76 82 So 84 40 54 15 42 59 Wyorning._ ... _ __ _ 81 85 8I 91 83 93 83 89 84 93 77 93 77 93 65 85 United St;ltes.. _ ............... 84.3 71.7 67.9 85.7 84-7 83.2 74.8 81.4 77.2 86.4 77-4 83.7 69.6 82.9 75.7 68.2 78.5 SPRING WHEAT: The United States June 1 c·ondition of spring wheat was reported at 67.9 percent~ the lowest ever reported for that date. This low condition is due to a serious lack of moisture in the important spring wheat areas of the nation. CORN: Planting was completed by mid-June in all Tenth District states and was reported generally good and clean. Some cut worm and army worm damage was reported from Kansas, Missouri, Oklahoma, and Nebraska, necessitating some replanting, especially in Kansas and Missouri. Moisture is needed in western Kansas and Nebraska, northeastern Wyoming, and in Colorado and New Mexico. HAY: Alfalfa was damaged somewhat in Kansas by cut worms, and in Nebraska and Colorado by May freezes, and the first cutting will be light in those states. Missouri reports clover and timothy meadows showing effect of last summer's drought. Wild hay was retarded somewhat in Nebraska, Kansas, and Colorado by low temperatures and lack of moisture. COTTON: Oklahoma reports cotton small and late but making good advance, well cultivated, and stands fair to good. In Missouri the crop has not made favorable progress due to cold rains after plan ting. FRUIT: Fruit prospects, although not up to earlier expectations, are good in all states of the District, except Oklahoma, where late freezes did considerable damage, especially to peaches. The strawberry movement from the Ozark district is completed, and, although production was not as large as in former years due to many plants being killed by last summer's drought, prices were fairly satisfactory. Flour Production With only one month remaining of the 1930-1931 wheat year and the price uncertainty of new crop wheat, flour production in this District in May was the smallest for any month since June, 1928, and the smallest for any May since 1926. Production during the month was 6.1 percent less than in the preceding month and 18.8 percent less than in May, 1930. Production during the eleven months of the current wheat year was 4.8 percent less than in the corresponding eleven months of the preceding wheat year. Production at the leading milling centers in this District as compiled from weekly reports to the Northwestern Miller: Atchison ................................................... . Kansas CitY·-·············· ····························· Omaha ..................................................... . Salina .. ..................................................... . St. Joseph..·-·························-··················· Wichita..--················································· Outsid..____ _ _ _ .............................. . Tota,___ _ _ _ _ _ _ _ __ M ay 1931 Barrels l I0,l IO 606,651 85,3o5 193,2 34 22,440 100,420 7?0,577 1,818,737 April 1931 May 1930 Barrels Barrels 122,713 137,052 625,026 680,951 91,263 III,774 164,7n 198,054 IIl,231 22,641 170,800 124,287 863,773 753,3 1 9 1,937,3o3 2,240,292 Millfeed prices continued to decline during May, with bran displaying greater weakness than shorts. The decline in millfeed prices caused advances of 5 to 15 cents per barrel in flour prices the closing week of the month. Demand for flour continued on a hand-to-mouth basis with car lot orders for immediate shipment predominating, although a few scattered sales of large lots were reported. A few sales of flour from new crop wheat were reported, but both the millers and the trade are waiting until the new crop comes in and a price is more definitely established. Grain Marketing Receipts of wheat in all American grain markets during May were exceptionally large as the Federal Farm Board had announced the abandonment of the fixed price schedule on new crop wheat, which would start moving to market by mid-June, and holders were anxious to take advantage of the fixed price on old wheat and wished to dispose of their stocks before new wheat arrived on the markets. May receipts of old wheat at the five principal grain markets in this District were 80.0 percent larger than in April, 247.6 percent larger than in May, 1930, and almost twice as large as in any May of record. Receipts at these five markets during the eleven months of the 1930-31 wheat year totaled 232,622,320 bushels, compared to 210,472,980 bushels marketed in the corresponding eleven months of the preceding wheat year. Marketings of corn, oats, and kafir were smaller and of rye larger in May than in April or in May, 1930. May receipts of corn at the five markets were the smallest for any month since October and for any May since 1925, and arrivals of oats were the smallest for any May on records beginning in 1920, and of kafir the smallest for any May since 1923. The May record for the five markets follows: Wheat Corn Oats Rye Barley Kafir Bushels Bushels Bushels Bushels Bushels Bushels Hutchinson. 1,865,700 22,500 71,250 1,500 33,800 Kansas City 9,899,200 1,929,000 180,000 16,500 96,000 108,900 Omaha_ ...... 4,678,400 182,000 789,600 19,6oo 33,600 212,000 St. Joseph •.. 1,500 10,500 507,000 591,000 Wichita. ____ 1,135,500 8o,6oo 23,400 7,800 May 1931.... April 1931 ... May 1930.... 5 Mos. 1931 5 Mos. 1930 18,169,800 10,n7,450 5,226,850 71,897,650 36,284,920 3,377,450 6,000,100 575,500 959,000 4,o9o,95o 1,682,000 31,364,550 4,449,000 37,474,350 7,718,000 186,000 150,500 106,100 221,100 28,900 200,700 322,200 27,300 167,500 594,65° l,'.231,400 141,600 1,165,200 2,682,200 37,600 PRICES: Wheat prices, at the lowest level in nearly thirtyfive years, remained unchanged during May, with No. 1 hard and dark wheat opening at 74 to 76 cents per bushel and closing at the same price on the Kansas City market. No. 2 mixed corn opened at 49_½ to 51 cents per bushel, rose to 54½ cents on May Io and closed the month at 49 to 50 cents. Prices paid for No. 2 ,vhite oats fluctuated between 29 cents per bushel and 32 cents, closing at the latter figure. May, 1930 closing prices 5 THE MONTHLY REVIEW were as follows: No. 1 hard and dark wheat $1.02 to $1.17; o. 2 mixed corn 75 to 77 cents, and No. 2 white oats 40.½' to 41 cents per bushel. On June 3 the Grain Stabilization Corporation announced its immediate abandonment of paying fixed prices for wheat and for several days quotations on old crop wheat fluctuated considerably at lower levels. On June 23 quotations on the Kansas City market were 12 to 15 cents under the May close. Livestock Livestock on western ranges are reported in good condition with ranges and pastures generally good. Prospects are favorable for a good calf crop with cows in good flesh. Weather conditions during May were favorable for range lambing and reports indicate a large lamb crop and light losses. Few sales and trades of cattle have been reported, but no lambs had been contracted to June 1. Some wool has been marketed at 12 to 16 cents per pound and some consignments to the National Wool Marketing Corporation have been made. The June I condition of livestock and ranges in this District was reported by the Division of Crop and Livestock Estimates as follows: "COLORADO: Ranges made slow growth in May but feed generally good. Cattle generally in good flesh. Sheep are in good condition with a few thin ewes in western and southcentral sections. Lamb crop good with about normal losses. Calf crop generally good. Snow light in mountain areas. "KANSAS (WESTERN): Soil moisture generally adequate but somewhat short in northwest. Grass prospects good. Cattle are in good condition. Some calves lost as the result of the March storm. Some pastures are not filled. "NEBRASKA (WESTERN): Late freezes and lack of moisture have reduced range feed which is fair to good. Cattle generally in good condition. Calf crop below normal due to spring storms. "NEW MEXICO: Ranges improved with May rains and carry a good supply of feed, although a few places are beginning to dry up. Cattle are doing well with favorable prospects for a calf crop. Sheep are generally in good condition with some losses of old ewes. The lamb crop ranges from poor to very good, with considerable loss in a few areas. "OKLAHOMA: Soil moisture conditions are good, except in a few places, pastures have improved and feed is good. Cattle are making good gains and are in good flesh. "WYOMING: Ranges good in northwest, central and southwest, but dry in northeast and southeast. Moisture below normal. Summer feed prospects good but rain needed. Lamb and calf crops generally good with light losses from May storms. Ewes are generally in fair to good condition. Cattle and sheep have done well but show a slight shrink in drier areas." There was a decrease of 18 percent in the spring movement of cattle to the Blue Stem pastures of Kansas and the Osage country in Oklahoma. The two regions received 386,000 head of cattle from January 1 to May 31 this year, compared with 471,000 head in 1930 and a five-year (1925-1929) average of 439,000 head. The movement from the southwest was late, but cattle were in unusually good condition and pastures in both sections are excellent with stock water plentiful. Many of these cattle will be ready for marketing in late June and July if prices are satisfactory. Kansas City ...................... Omaha.... St. Joseph .......................... Denver·-····························· Oklahoma City.................. Wichita .............................. Cattle 107,711 122,623 34, 253 33,625 13,101 19,630 MARKET MOVEMENTS: Fewer cattle, calves, and sheep and more hogs were received at the six principal livestock markets of this District during May than in any month since February. The May movement of hogs was the smallest for that month since 1922, and of calves since 1921. Marketings of cattle during the month were the smallest, and of sheep the largest recorded for any May in the twelve years for which our records have been compiled. There was a seasonal decline in the number of horses and mules arriving at these markets during May as compared to April amounting to 33 percent, and the total for the month was 3.0 percent under that of May, 1930. Sixty-five markets in the United States received 4.4 percent more cattle, 1.7 percent fewer calves, 10.8 percent fewer hogs, and 20.4 percent more sheep in May, 1931 than in May, 1930. May receipts of cattle, calves, and hogs were 12.9, 10.6, and 14.1 percent, respectively, under the five year average (1926-30) for that month and receipts of sheep were 37.9 percent in excess of the five-year average. STOCKER AND FEEDER MOVEMENT: Four Tenth District markets reported fewer cattle, calves, and hogs and more sheep shipped to the country for feeding during May than in April this year or May, 1930. The outgo of cattle was the smallest and of sheep the largest for any May on records beginning in 1921. Shipments of hogs were the smallest for any May since 1921, and of calves the smallest for any May since 1925. All principal markets in the United States reported a reduction of 21.4, 33.4, and 29.9 percent in the countryward movement of cattle, calves, and hogs in May as compared to May, 1930, and an increase of 23.9 percent in the outgo of sheep. Compared to the May five-year average (1926-30), stocker and feeder shipments of cattle, calves, hogs, and sheep declined 39.5, 18.7, 46.2, and 7.8 percent, respectively. MEAT PACKING: Following the course of receipts at the six Tenth District markets, there was a decline in meat packing operations in the beef and mutton departments and an increase in the swine department in May as compared to April. The May slaughter of cattle was the largest for that month since 1928 and of calves the smallest since 1922. Fewer hogs and, with the exception of May, 1930, more sheep were killed during the month than in any like month of record. As measured by the number of animals slaughtered under federal meat inspection, there were 2.0 percent more cattle, 0.9 percent more calves, 5.4 percent more sheep, and 10.8 percent fewer hogs killed in the United States in May, 1931 than in May, 1930. PRICES: Livestock prices continued downward in May, cattle closing the month '1,1 to $1.25 per hundred lower than one month earlier, fed steers showing the greater loss with the low MAY MOVEMENT OF LIVESTOCK IN THE TENTH DISTRICT RECEIPTS STOCKERS AND FEEDER.S Cattle Hogs Sheep Calves Calves Hogs Sheep 21 ,337 284,830 19,446 14,156 •277,<]08 1,758 3,274 1,187 254,381 2,269 46,650 243~004 4,741 7,914 11 6,549 6,009 149,124 2,348 2,283 24,370 584 3,082 13,<)04 1,019 86,556 1,019 49,3 23 9,3°5 5,16o 17,167 23,993 11,825 4,837 48,337 770,491 May 1931. ____ ··················· 79 2,5o6 330,943 37,985 681,164 1,009,3 27 April 1931-... 39,287 349,173 893,206 623,846 47,638 33 2,247 May I 930·----··················· 5 Months 1931.. ................ 1,699,615 208,781 4,147,746 3,958,352 5 Months 1930.................. 1,813,564 257,708 4,626,050 3,87o,745 • Includes 146,114 hogs shipped direct to packers' yards. 13,141 99,77 1 92,880 55,164 40,224 71,674 333,800 45,5°3 4,548 8,935 62,96o 66,885 5,489 8,156 9,73° 349,445 408,183 35,677 49,2o6 424,292 PURCHASED FOR SLAUGHTER Calves Sheep Cattle Hogs 12,037 •236,059 129,139 57,353 155,427 76,866 181,179 3,554 26,116 83,388 5,512 I 11 ,797 24,746 2,049 42,435 9,777 12,404 19,441 8,389 4,57 2 I 1,518 1,648 46,291 5,565 184,o66 196,643 181,421 881,296 910,633 29,37 2 29,845 6o8,793 445,031 4<)0,830 462,146 704,466 35,o65 148,031 3,184,026 2, 177,595 168,557 3,285,824 2,425,081 535,7 1 5 6 THE MONTHLY REVIEW top of the month on~heavy~beeves: being~the)owest since e191 r. On May 28 the top on hogs 1at Kansas City was $5.85, the lowest top price on that market since 1908. The lamb market was erratic during May, but closing prices showed net losses for the month of 25 cents to $1. Moderate receipts of cattle and)igh(receipts of hogs coupled with a slightly improved demand for pork, resulted in an upturn in prices the first half of June of approximately $1 per hundred pounds on cattle and $1.60 per hundred on hogs above the May low. On June 18, yearling steers topped the Kansas City market at $8.85, the highest since May 4, and the top on hogs for that date was 7.45, within 55 cents of the year's highest price; Increased receipts of sheep caused an average decline of '$1 ·per hundred in values up to June 2.0. Cold Storage Holdings BUILDING IN TENTH DISTRICT CITIES EsTJMATED CosT PERMITS Albuquerque, N. M ..---·········· Cheyenne, Wyo ...................... . Colorado Springs, Colo ..-...... . Denver, Colo ........................... Hutchinson, Kans ................... Joplin, Mo ..... ......................... . Kansas City, Kans ... ............. . Kansas City, Mo ..................... Lincoln, Nebr..-....................... Oklahoma City, Okla ............ . Omaha, Nebr ........................... Pueblo, Colo.·-························· Salina, Kans ............................. Shawnee, Okla ......................... St. Joseph, Mo ..-..................... Topeka, Kans.·--····················· Tulsa, Okla·---························· Wichita, Kans ......................... 1931 81 3'.! 40 4o5 31 14 77 202 54 2 59 103 107 I7 8 53 53 122 105 1930 99 21 62 57° 30 33 75 1 99 50 282 107 112 20 17 58 63 207 1 59 1931 127,657 39, 1 9° 17,670 906,400 2 9, 1 55 5,100 62,300 574,700 85,555 1,522,556 320,130 64,040 59, 1 5° 35,65o 1 69,555 98,000 385,07 2 168,357 '/, 1930 131,251 3o,675 64,675 741,100 42,43o 219,556 174,165 2,026,250 416,760 2,347,841 554,364 46,225 52,850 22 ,975 64,563 347,119 839,265 617,968 .,, 8,740,032 May, 18 cities .......................... 'I, 4,670,237 United States cold storage holdings of meat, exclusive of Five 2 3,9 1 4, 2 57 months, 18 cities............ 36,684,319 poultry, totaled 958,594,000 pounds June 1 this year compared to 834,656,000 pounds June 1, 1930 and a five-year June 1 The F. W. Dodge Corporation reports the value of building average of 889,497,000 pounds. This increase was due to larger contracts awarded in the Tenth District, as a whole, during holdings of frozen and cured pork, as holdings of beef, lamb and mutton, and miscellaneous meats were smaller than one year May as 6.5 percent larger than in April but 18.9 percent smaller earlier and beef stocks were under the five-year average. Storage than in May, 1930. Residential construction declined 7.7 perstocks of lard were 1o. 2 percent smaller on June 1 than one year cent from the preceding month and 7.6 percent from the corresponding month last year, and the May total was the smallest earlier and 2.6.5 percent smaller than the five-year average. reported for that month in the six years of record. Between May 1 and June 1 there was a seasonal out-of- · The April report of the F. W. Dodge Corporation on resistorage movement of meats and a seasonal in-storage movement dential and total building contracts awarded in the Tenth of lard, eggs, butter, and cheese. The in-storage movement of District and the United States: butter, eggs, and cheese during May was under that of last year or the five-year average. TOT AL BUILDING CONTRACTS AWARDED On June 1 cold storage holdings of all commodities, except UNITED STATES TENTH DISTRICT 1931 1930 1931 1930 pork, were smaller than on June 1, 1930 and stocks of beef, May ................. . $13,954,367 'I, 17,2 16,399 'I, 306,079,100 .,, 457,416,000 poultry, turkeys, lard, eggs (loose), and cheese were below the Apri...__ _ __ 336,925,200 483,251,700 13,105,310 20,754,472 five-year average June 1 holdings. 5 Months .......... 74,089,920 106,937,518 r,476,347,100 2,038,814,900 The June 1 cold storage holdings for the United States, as reported by the Bureau of Agricultural Economics, are shown RESIDENTIAL CONTRACTS AWARDED in the following: UNITED STATES TENTH DISTRI CT *June I 1931 Beef, lbs ...·-··········································· 49,169 Pork, lbs. .............................................. 827,743 Lamb and mutton, lbs....................... 2,331 Poultry, lbs.·-· · · - - - 35,343 *"'Turkeys, lbs......................................... 3,894 Miscellaneous meats, lbs _ _ _~ 79,351 Lard, lbs....... - - - - - - - - 103,456 Eggs, cas----···························· 7,881 Eggs, frozen (case equivalent).......... 3,046 Butter, creamery, lbs.·---··················· 35,286 Cheese, all varieties, lbs ................... 55,941 *Subiect to revision. **Included in poultry. May 1 1931 June I 1930 71,556 867,524 675,167 2,529 4,639 45,920 61,167 4,816 8,742 81,359 83,294 95,693 II 5,27o 5,162 9,178 2,615 3,054 17,195 5o,378 53,172 68,a7 (ooo omitted). 53, 1 5° June I 5-Yr. Av. 53,816 765,528 2,257 50,203 7,783 67,896 140,727 8,050 2,016 3°, 1 33 56,249 May ................. . April.. ................ 5 Months .......... 1931 .,, 2,129,1 51 i.,305,784 II,259,91 7 'I, 3,385,148 1, 88,899,600 1930 $II6,568,500 4,027,702 20,787,267 95,896,400 418,001,900 480,597,100 1930 1931 123,141,900 Lumber Retail lumber sales in this District in May, as indicated by the combined reports of 172. retail yards, was 1.6 percent larger than in April, but 2.8.0 percent smaller than in May, 1930. In 1930 and 192.9 May sales declined from April sales by 15.5 percent and 7.5 percent, respectively, but in the three years immediately preceding 192.9, May sales slightly exceeded April sales. Building Stocks were reduced 1.8 percent between April 30 and May 31, and on the latter date were 12..3 percent smaller than one Building operations in this~District during May, as measured year earlier. by the number and value of permits issued in eighteen leading Percentages of increase or decrease for May, 1931 over April, cities, were substantially under those of the corresponding · 1931 and May, 1930 on the various items reported, are shown month of the twelve preceding years for which records have been in the · following summary: compiled. Compared to April, there was a decrease for the May 1931 Compared to month of 12..4 percent in the number ofpermits issued and 7.3 April 1931 May 1930 --28.0 1.6 percent in the estimated cost of construction. The number Sales of lumber, board feet ....................................... . of all materials, dollars .... .. ............................. . - 2.5 -37.7 and value of building permits issued during the first five months Sales Stocks of lumber, board feet.-.................................. . - 1.8 -12.3 of the current year were 15.4 percent and 34.8 percent, respec- Outstandings, end of month ..................................... . z.9 -27.9 tively, less than in the corresponding five months of 1930. Collections during month .......................................... -13.4 -38.3 7 T1u MONTHLY REVIEW Cement Cement production in this District in May was the largest for any month since last August and 70.2 percent larger than in April, which is considerably more than the usual seasonal increase. May production was 7.8 percent smaller than in the corresponding month last year, but larger than that for May, 1929 and 1928. Shipments were also larger than in April but 4.3 percent smaller than in the corresponding month last year, exceeding however, shipments during May, 1929 and 1928. Portland cement stocks at mills on May 31 were 2.5 percent less than on April 30 and the lowest since December 31, 1930. However, stocks on May 31 were 2.2 percent larger than one year earlier. Production in this District in May, as reported by the United States Bureau of Mines, with comparisons: May 1931 Barrels Production ............................................... . Shipments ............................................... . Stocks, end ot month ............................. . 1,544,000 1,607,000 2,423,000 April 1931 Barrels 907,000 1,126,000 2,485,000 May 1930 Barrels 1,674,000 1,680,000 2,370,000 Portland cement production in the United States in May totaled 14,006,000 barrels, shipments 14,222,000 barrels, and stocks on hand at the end of the month 29,447,000 barrels. Compared to May, 1930, production decreased 18. 8 percent, shipments 17.4 percent, and stocks 4.7 percent. Petroleum Crude oil production in Tenth District fields declined ilightly during May although production in the United States increased somewhat, due to large initial new production in east Texas fields. The May production in this District was the smallest for any May since 1926, 0.1 percent smaller than in April and 13.5 percent smaller than in May, 1930. New Mexico was the only state in the District to report larger production in May this year than in May, 1.930. The production figures: GROSS PRODUCTION *May 1931 Barrels Oklahoma................................................. . 17,421,000 Kansas ..................................................... . 3,33°,000 Wyoming ................................................. . 1,320,000 Colorado ................................................... . 126,000 New Mexico.....- ...................................... . 1,351,000 Total, five states.- .............................. .... Tota!, United States .............................. . 23,548,000 75,683,000 April 1931 May 1930 Barrels Barrels 17,750,000 3,172,000 1,334,000 128,000 1,197,000 20,959,000 3,969,ooo 1,572,000 137,000 588,000 23,581,000 73,101,000 27,225,000 80,176,000 On June 1 crude oil purchasing companies posted a new schedule of prices to be paid for the various grades amounting on the average to a 44 percent decline. This was the second drastic price cut during 1931 as the first week in March prices were reduced approximately 35 cents per barrel. Under the new price schedule, high grade Oklahoma and Kansas crudes are selling at 37 cents per barrel and low grade oils at 25 cents per barrel. The lowest price ever previously posted was 35 cents for oil above 30 degree gravity in 1909 and the highest posted price ever paid for Kansas and Oklahoma oil was $3.50 per barrel from March 20, 1920 to January 2, 1921, wi th independent refineries paying premiums of 25 to 50 cents per barrel. Prices of refined products weakened in: sympathy with the reduction in crude oil prices. The May report on field operations discloses that fewer wells were completed during the month than in any month on records beginning in 1919, and that the daily new production from wells completed was the: smallest for any month since January, 1924, and for any May of record. For the eleventh consecutive month there was a decrease in the number of rigs up and wells drilling on June 1 and the total number, as of that date, was the smallest of record. The field summary: Barrels Daily Wells Completed New Production Oklahom · 65 34,74 2 1 3,569 Kansas ...................... 41 Wyoming .................. 150 4 Colorado 0 0 2 0 New Mexico·---······· May 193L............... April 1931.. .............. May 1930.- .............. II'l 188 439 Dry Wells 36 14 2 0 2 48,461 232,233 54 356,705 138 53 Gas Rigs-Wells Wells 12 8 0 0 0 Drilling 375 165 96 So 48 20 40 34 764 783 1,444 Bituminous Coal There was more than the usual seasonal decline in soft coal mining in this District in May as compared to April. Production during May was 9.4 percent less than in April and 15.5 percent less than in May, 1930, and the total for the month was the smallest recorded for any month since May, 1922. United States production of bituminous coal during May was the smallest for any month since August, 1922 and for any May since that year. The production of the six coal producing states of this District and the United States for May, with comparisons: *May 1931 Tons Colorado...................................... . Kansas ..... · ................................ ... Missouri ....................................... . New Mexico................................. . Oklahoma...................................... Wyoming..................................... . Total, six states·---····················· Total, United States ................... *Estimated. 355,000 April 1931 Tons 396,000 153,000 185,000 122,000 78,000 340,000 208,000 122,000 90,000 380,000 May 1930 Tons 490,000 I'l6,ooo 225,000 146,000 II0,000 362,000 1,233,000 28,333,000 1,361,000 28,478,000 35,954,ooo 165,000 1,459,000 Zinc and Lead Activity at the zinc and lead mines in Oklahoma, Kansas, and Missouri continued to decline in May. Production of both zinc ore and lead ore, for the four weeks ended May 30, was substantially below that of the preceding four weeks ended May 2 and the corresponding four weeks ended May 31, 1930. Zinc ore shipments for the week ended May 23 were the smallest recorded for any week since 1923 and lead ore shipments the smallest since July, 1905. Two $2.50 per ton declines during the month carried lead ore prices to $30 per ton, which price was below 1921 levels and compares with $65 per ton on May 31, 1930. •~ Zinc ore prices, after remaining unchanged for six weeks, increased '1,1 per ton the final week of the month to close at 'l,21 per ton as~against $3 1 per ton one year earlier. Tonnages of ores shipped and their sales value are here shown for four week and twenty-two week periods: Oklahoma.................................. Kansas .... .................................. Missouri .................................... 4 Wks. ended May 30, 1931. .4 Wks. ended May 2, 1931. .. 4 Wks. ended May 31, 1930. 22 Wks. ended:May 30, 1931. 22 Wks. ended_May'.3 1, 1930. ZINZ ORE Value Tons 'I, 239,800 I 1,990 73,480 3,674 2,060 103 15,767 27,478 39,260 n8,270 204,415 'I, 3 1 5,340 625,083 1,292,106 2,874,099 7,214,491 L EAD ORE Tons Value 1,047 . '/, 33,492 279 ., ,J ( 9,o53 89 T;ij ''iff 2,775 1,415 2,166 4,240 12,867 20;644 '$ 45,320 95, 14° 267,657 ' 589,121 . 1,~33,601 8 THE MONTHLY REVIEW Business Conditions in the United States By the Federal Reserve Board The volume of industrial production showed little change between Apri! and May following upon increases for four consecutive months, while factory employment declined by the usual seasonal amount. The general level of wholesale prices continued to decline. Index number of industrial production, adjusted for seasonal variation (1923-1925 average= 100). Latest figure, May, 89. ))tRCIWT 120 !Ju t(.,() PUtC(NT PRODUCTION AND EMPLOYMENT: Volume of industrial production, as measured by the Board's seasonally adjusted index, was about the same in May as in April, 9 percent larger than in December, and 14 percent smaller than in May, 1930. Steel output continued to decline more rapidly than is usual at this season, and consumption of cotton by domestic mills was also curtailed, while wool consumption continued to increase, contrary to the usual seasonal tendency, and shoe production, which ordinarily declines in May, showed little change. Daily average output of automobiles, according to preliminary reports, was about the same as in April. During the first three weeks of June activity at steel mills declined further. - ' - - - ~ -W _ H_C_L t-SA _ L_t _P~RlC _ ES _ - ,_ _ -- 120 1• '• - - - - - - - ; : -· - ' I _____ J_ ___,f - - - 1 ·1 -·\- - - - ~ ~0 I ao ----- - - - - - I --- - 10 ---- (IO .••• 1927 I 19211 ' tt 0 In the first five months of the year, taken as a whole, output of textile mills and shoe factories has been in about the same volume as in the corresponding period last year, while output of steel, autompbiles and lumber has been about one-third smaller. --~= .9r,;1Pr~t~ , I I --t--~J1: -1930 --1931 60 Indexes of the United States Bureau ot Labor ~tatistics (1926=100). Latest figures May, farm products 67.1, foods 72.9, other commodities 73.2. 6JU:0:1s or OUL AAS 10 Changes in employment from the middle of April to the middle of May were of the usual seasonal character in many manufacturing industries. In the iron and steel industry, however, at car building shops, and at establishments producing machinery, employment declined considerably, while it increased in the automobile and tire industries. At textile mills employment increased somewhat, contrary to seasonal tendency, while in the clothing industry the number employed decreased. Value of building contracts awarded in May was somewhat smaller than in April reflecting chiefly a decline in awards for public works and utilities. In the first half of June daily average value of contracts awarded increased somewhat, reflecting larger awards for public works and utilities, offset in part by decreases in awards for other types of construction. DISTRIBUTION: Sales by department stores decreased in May, contrary to the usual seasonal tendency, and the Board's index declined to the level prevailing before the sharp increase in April. Total freight car loadings increased somewhat less than usual. WHOLESALE PRICES: The general level of wholesale prices declined 2.7 percent further in May, according to the Bureau of Labor Statistics, reflecting large decreases in prices of agricultural products, textiles, nonferrous metals and building materials. In the first half of June prices of livestock which had declined rapidly in Apri l and May advanced, while prices of petroleum continued to decline. 1926 Monthly averages or weekly figures for reporting member banks in leading cities. Latest figures are averages of first three weeks in June. Monthly averages ot daily figures. Latest figures are averages of first 17 days in June. BANK CREDIT: Loans and inves·t ments of reporting member banks in leading cities declined further by about $285,000,000 in the four weeks ended June 17, reflecting reductions of loans on securities, "all other" loans, largely commercial, have shown little change since the early part of May. The banks' investments, which reached a new high level late in April, were reduced somewhat during May, and have fluctuated within a range from $7,800,000,000 to $7,850,000,000 since that time. During the four weeks ended June 17 there were imports of gold from Argentina and Canada, and in addition a large amount of gold previously earmarked for foreign account was released in the United States. The total increase in the stock of monetary gold was $120,000,000 for the period, of which $90,000,000 was added during the last week. Payments of currency into circulation> accompanying bank suspensions in the Chicago district, absorbed a large part of the funds arising out of the additions to the gold stock, with the con sequence that there was little change in the volume of reserve bank credit. MONEY RATES: Money rates in the open market continued at a low level during May and the first three weeks of June. There was a further decline in prevailing rates on commercial paper from a range of 2-2¼ to a level of 2 percent, while rates on banker's acceptances were unchanged at 7-8 of I percent. Rates paid on deposits by banks were further reduced and clearing house banks in a number of financial centers established a rate of½ of I percent on banker's balances.
@FedFRASER