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THE MONTHLY REVIEW
Of Agricultural, Industrial, Trade and Financial
Conditions in the Tenth Federal Reserve District
FEDERAL
Vol.
I
8
RESERVE
KANSAS CITY,
BANK
Mo.,
E
XPERIENCING the first improvement in nearly four
years, trade at both wholesale and retail featured the
advance in Tenth District business conditions in May.
The rise in agricultural commodity prices, which was so abrupt
in April, although continuing in May, was less rapid.
Returning confidence is-also indicated by increases in savings,
net demand, and time deposits at banks during the month, and
for the second consecutive month loans and discounts at fiftythree selected member banks increased. Business insolvencies
were less numerous than for any May since 1923 and liabilities
the smallest since 1929.
Weather conditions the forepart of June have been ideal for
harvest and haying but injurious to growing crops, ' and generous rains are needed immediately. Winter wheat production
will be smaller than for any year since 1904, with the outlook
for other spring grains poor. A fair hay crop is in prospect
and corn, although late, has not been injured seriously as yet.
OF
JuLY I,
1933
KANSAS
CITY
No. 7
BUSINESS IN THE TENTH FEDERAL RESERVE DISTRICT
Percentages of Increase, or Decrease (-), for May 1933 over April 1933 and
May 1932 and for the first five months of 1933 over the like period in 1932.
May 1933
5 Mos. 1933
Compared to
Compared to
Banking
Apr. 1933 May 1932 5 Mos. 1932
Payments by check ............................... . - 0,1
-10.3
-17.6
Federal Reserve Bank clearings............
7.1
1.7
-11.4
Business failures, number.... - - - -24.0
-29.8
-28.8
Business failures, liabilitie..__ __
7.8
-47.3
-55.9
1,0
-16.5
Loans, 53 member banks.--··················
Investments, 53 member banks ............
2.3
7.9
Net demand deposits, 53 member banks
4.7
0.3
o.6
- 8.6
Time deposits, 53 member banks·-··-···
Savings deposits, 44 selected banks.-.
o.6
-10.5
Savings accounts, 44 selected banks ....
0.03
- 5.3
Distribution
Wholesalers' sales, 5 lines combined ....
1 9·5
-10.3
7.0
Retailers' sales, 32 department stores..
o.8
4.6
-14.7
2 3•7
Lumber sales, 157 retail yards ..............
6.9
43.7
Life insurance, writte,....__ _ _ __
10.6
- 2,0
- 15.9
Construction
102.0
Building contracts awarded, value·---·
-31.8
-41.8
Residential contracts awarded, value..
19.6
-24.8
5.3
Building permits in 17 cities, value. .....
18.4
-35.8
-43.9
Production
Flour_ _ _ _ _ _ _ _ _ _ __
10.7
- 7.7
5.4
-0.3
Even
Crude petroleum·--·····----7.5
Soft coa.___ _ _ _ _ _ _ __
15·9
-10.7
4.5
Zinc ore (shipped) Tristate District, .._ -15.8
5.6
44.1
Lead ore (shipped) Tristate District..132.1
26.5
- 5.8
Cemen.___ _ _ _ _ _ _ __
29.6
11.5
1.3
Grain
receipts,
5_
markets
WheaL-.
__
_ _ _ _ _ __
112.5
-47.9
7-5
328.2
58.0
104.4
Corn ...._
-_
-_
-_
-_- - - - - Oat.._
159.8
35-4
Ry.__ _ _ _ _ _ _ _ _ __ -9.6
288.4
312.4
9.7
Barley_ _ _ _ _ _ _ _ __
11 7•5
150.6
-3o.7
Kafir_ _ _ _ _ _ _ _ _ __
-21.8
-42.6
-55.9
Livestock receipts, 6 markets
Cattle.. _ _ _ _ _ _ _ __
-4.4
13.5
Calves.................... _ _ _ _ _ __
2 9·9
17.1
- 8.o
-13.6
Hogs .. - - - - - - - - - - 2.8
- 13.9
Sheep ........ -----···················· -10.0
27•4
Horses and mules .................................. _ -28.2
1.3
Meat packing, 6 markets
Cattle _ _ _ _ _ _ _ _ _ __
J0,2
26.6
- 4.5
Calves _ _ _ _ _ _ _ _ _ __
- 2.5
15.-4
~-2
1 3·3
- 6.8
- 8.6
Hogs ..........................................................
1.0
-14.8
8.8
Sheep .....·-············································-··
May dollar sales of five representative wholesale lines combined were 19.5 per cent larger than in April, the first increase
for the month in four years and the largest in fourteen years
of record. They were also larger than a year ago, May being
the first month in about four years to show an increase over
the corresponding month of the preceding year. Total dollar
sales of thirty-two reporting department stores were also
larger in May than in April this year or May last year. The
4.6 per cent increase over April was the first since 1929 and the
increase of o.8 per cent over May, 1932, was the first for any
month since May, 1930.
Prices of all species of livestock and most classes of grain
were higher for the month. Of the several classes of livestock,
cattle alone sold under a year ago. Wheat prices held their
own, with producers receiving 60 cents per bushel for the new
crop as aga,inst 2 5 and 30 cents a year ago. Flour closed the
month unchanged and millfeeds were somewhat lower. Butterfat was steady but poultry and egg prices declined to the lowest
levels of record. Wool and hides were active at higher levels.
The Department of Agriculture's index of farm purchasing
power advanced 9 points between April 15 and May I 5 to 62
per cent of pre-war, or 14 points above the low of February
15. Zinc ore and lead ore prices improved and are approximately double those in effect this time last year. Crude oil Stocker and feeder livestock were in good demand, supplies
prices, which were reduced to a flat 25 cents per barrel the first liberal, and the countryward movement considerably heavier
week in May, were re-established at the previous per gravity than that of May, 1932 .
schedule ranging from 2 8 to 52 cents per barrel June 1 7•
Output of flour at Tenth District mills was somewhat lighter
Livestock and grain moved to market in more nearly normal than the heavy April volume but exceeded that of May, 1932.
volume, with receipts of all species of livestock, except hogs, Shipments of zinc ore declined during the month and those of
and all classes of grain, except kafir, at the principal market lead ore increased, with shipments of both classes running
centers of the District somewhat heavier than a year ago. ahead of a year ago. Production of coal and cement was larger
This Copy Released For Publication In Morning Newspapers, June 29.
'.2
THE MONTHLY REVIEW
than one month or one year earlier, and the flow of crude oil,
although showing an increase for the month, was approximately the same as last year. Meat packing establishments
were more active than a month ago and, excluding swine,
packers purchased more meat animals than a year ago. Building activity was at but a fraction of its normal rate.
Banking and Credit
MEMBER BANK OPERATIONS: Duplicating the reverse tendency disclosed by their report of May 10 compared
to April 12, fifty-three member banks in selected cities of the
District increased their loans and discounts I per cent between
May 10 and June 14. This increase was entirely in "all other"
loans, as loans secured by stocks and bonds were virtually
unchanged. Total loans as of June 14 were 16.5 per cent below
the total as of June I 5, 1932, with the decrease in loans on
stocks and bonds amounting to 23.3 per cent and that of "all
other" loans to 14.9 per cent.
Improved confidence, accompanied by a return flow of currency to these banks, was also evidenced by increases of 4.7
per cent in net demand deposits and o.6 per cent in time deposits during the five weeks' period. Net demand deposits
as of June 14 were 0.3 per cent larger than fifty-two weeks
earlier, but time deposits were 8.6 per cent smaller.
The banks disposed of one million dollars in United States
Government securities during the five weeks ended June 14,
but, owing to purchases of seven million dollars of other bonds,
stocks, and securities, total investment holdings were enlarged
2.3 per cent. Since June 15, 1932, these banks have increased
their total investment holdings 7.9 per cent, the decrease of
5.9 per cent in other bonds, stocks, and securities being more
than offset by a 20.1 per cent increase in holdings of United
States securities.
The accompanying table shows the principal items contained
in the condition statements of the fifty-three reporting member
banks for the three dates of comparison:
Loans and investments-total..
Loans and discounts-total._ __ .
Secured by stocks and bonds
All other loans and discounts
Investments-tota
U.S. securities ........................
Other securities
Reserve with F. R. bank. __ ·······
Net demand deposits..................
Time deposits ..............................
Government deposits..................
June 14, 1933 May 10, 1933 June 15, 1932
$484,000,000 $476,000,000 $506,000,000
212,000,000
210,000,000
254,000,000
58,000,000
58,000,000
73,000,000
I 8 I ,000,000
I 52,000,000
I 54,000,000
266,000,000
252,000,000
272,000,000
162,000,000
161,000,000
134,000,000
u8,ooo,ooo
I I I ,000,000
I 04,000,000
46,000,000
45,000,000
49,000,000
319,000,000
334,000,000
333,000, 000
160,000,000
175,000,000
I 59,000,000
1,000,000
1,000,000
9,000,000
RESERVE BANK OPERATIONS: Member banks have
since March steadily reduced their borrowings from this bank
and branches, and total holdings of bills rediscounted as of
June 14 were 18.6 per cent smaller than five weeks earlier and
the lowest of the year. Reductions since June 15, 1932, have
amounted to $14,n9,510. Holdings of bills purchased also
showed substantial declines for the five and fifty-two week
periods.
The bank made additional purchases of United States securities, and aggregate holdings as of June 14 were $3,338,000
larger than on May 10 and $10,748,500 larger than a year ago.
Federal reserve note circulation declined $5,395,850 to
$II 1,954,275 in five weeks, but issuance of the new Federal
reserve bank~notes was expanded $428,500 to $870,000. A
year ago there were no Federal reserve bank notes in circulation and Federal reserve note circulation totaled $81,347,725.
Principal resource and liability items, contained in the weekly
condition statements of the Federal Reserve Bank of Kansas
City and branches, for the three dates of comparison:
June 14, 1933 May 10, 1933 June 15, 1932
Gold reserve_,____
$121,075,748 $121,263,895 J 76,513,454
Other cash .. _ _ _ _
n,386,570
n,129,706
9,202,324
Bills discounte.u.-----~
n,149,o69
13,701,845
25,268,579
Bills purchased............................
283,391
1,883,095
891,354
U. S. securities ...... - - - - 6o,558,100
57,220,100
49,809,600
Total bills and securities............
71,990,560
72,805,040
75,969,533
Total resources.,_____
230,677,623
229,640,048
188,837,505
F. R. notes in circulation..........
111,954,275
117,350,125
81,347,725
F. R. bank notes in circulation
870,000
441,500
Member banks' reserve deposits
78,oo6,711
73,863,301
71,464,330
The discount rate of the Federal Reserve Bank of Kansas City, on all classes
of paper and all maturities, remained unchanged at 3¼ per cent.
Bank Debits
The volume of debits to individual accounts for the four
weeks ended May 31, as reported by banks in twenty-nine
Tenth District cities, totaled $639,153,000 as against $639,599,000 for the four weeks ended May 3 this year and $712,399,000 for the four weeks ended June I last year. Payments
by check for the five months of the current year totaled
$3,449,813,000 or 17.6 per cent less than for the same period
in 1932. The totals by cities follow:
Albuquerque, N. M,.--···············
Atchison, Kans
Bartlesville, Okla .........................
Casper, Wyo.·--···················--······
Cheyenne, Wyo ...
Colorado Springs, Colo,.--.•·······
Denver, Colo...............................
Enid, Okla.........
Fremont, Nebr
Grand Junction, Colo .................
Guthrie, Okla.
Hutchinson, Kans.
Independence, Kans ...................
Joplin, Mo .........
Kansas City, Kans .....................
Kansas City, Mo .. - .....................
Lawrence, Kans.·-·······················
Lincoln, Nebr.. _._
Muskogee, Okla.·-·······················
Oklahoma City, Okla .................
Okmulgee, Okla...........................
Omaha, Nebr...............................
Pittsburg, Kans...........................
Pueblo, Colo
. ...
Salina, Kan
St. Joseph, Mo
Topeka, Kan
Tulsa, Oki
Wichita, Kans .............................
FouR. WEEKS ENDED
May 31, 1933
June 1, 1932
7,191,000
$
4,897,ooo
$
2,435,000
2,504,000
15,662,000
14,046,000
3,278,000
4,795,ooo
4,222,000
3,779,000
8,850,000
7,986,000
81,425,000
93,728,000
6,419,000
5,9 25,000
2,219,000
1,413,000
1,680,000
987,000
962,000
894,000
7,922,000
8,594,000
1,987,000
4,5 19,000
5,107,000
5,436,000
9,261,000
6,875,000
196,460,000
217,827,000
2,221,000
2,641,000
16,432,000
20,191,000
5,014,000
5,148,000
49,105,000
53,105,000
1,728,000
1,831,000
94,840,000
99,098,000
2,759,000
2,433,000
II,II8,ooo
9,043,000
5,310,000
5,267,000
20,406,000
19,851,000
8,819,000
9, 193,000
52,280,000
63,257,000
2 3,525,000
27,651,000
Per cent
Change
-3x.9
- 2.8
11.5
'-31.6
-10.5
- 9.8
-13.1
8.3
-36.3
-4 1.3
7.6
8.5
-56.0
Total 29 cities, 4 weeks............
Total 29 cities, 21 weeks............
f> 639,153,000
3,499,813,000
J 712,399,000
-10.3
-17.6
4,246,260,000
6.4
-25.8
- 9.8
-x5.9
-18.6
- ·2.6
-7-5
- 5.6
-4.3
-II.8
-18.7
- o.8
- 2.7
- 4.I
- 17.4
-I4.9
Federal Reserve Bank Clearings
Check collections through this bank and branches atOmaha,
Denver, and Oklahoma City in May were 7 per cent larger,
both as to number and the dollar amount of items handled
than in April. Comparisons with May, 1932, reveal a decrease
of 9 per cent in the number of items handled, whereas, the
dollar amount was 1.7 per cent greater.
Totals for May, April, and the five months:
ITEMS
May............ _... .
April.. ................
Five months ......
1933
4,213,096
3,936,101
18,650,471
1932
4,631,099
4,824,096
23,237,633
AMOUNT
1933
1932
' 524,805,000 $ 516,134,000
490,067,000
544,079,000
2,384,584,000 2,691,829,000
THE MONTHLY REVIEW
Stores
Reporting
Kansas City........ 4
Denver
4
Oklahoma City.... 3
Tulsa.................... 3
Wichita................ 3
Other cities .......... 15
Tota
NOTE:
RETAIL TRADE AT 3'2 DEPARfMENT STORES IN THE TENTH FEDERAL RESERVE DISTRICT
STOCKS (RETAIL)
S.A LES
AccouNTS RECEIVABLE .AMOUNTS COLLECTED
STOCK TURNOVER.
May 1933
5 Mos. 1933
May 31, 1933
May 31, 1933
May 1933
Compared to Compared to
May
Compared to
5 Months
Compared to
Compared to
1
1
May 193'2
May31,193'2 933 193'2
5 Mos. 193'2 Apr.30,1933
May31,193'2 Apr.1933 May 193:2
933 193'2 Apr.30,1933
-18.8
-'2.'2
.'20
.16
.83
3.'2
.85
-14.2
- 4.5
- 17.3
- 5.8
0.9
11.8
.'21
l.'2'2
-11.3
- 6.6
- 1.3
--20.5
.30
1.07
1'2.6
- 1.J
3-9
1
.'2'2
3.6
--29.8
.3'2
1.46 1.16
6.1
- 3.1
-11.9
- 7.3
5.0
-17.6
1'2.1
.'28
'2.08
-10.4
-4.4
5.6
.38
-'2.9
2.5
1.78
- 8.7
3.5
I.I
.'21 l.'23
- 1.6
0.4
-16.3
.3'2
.98
--'27.8
-41.9
-16.4
0.9
'2.I
-11.6
-4.6
-16.7
.'29
.'25 1.15 1.13
- 15.4
5.'2
-10.9
9.3
0.'2
--20.2
.'21
o.8
.... 3'2
.27
-l4.7
Percentage of collections in May on accounts April 30, all stores reporting 35.0.
Savings
An increase, the first since last November, of o.6 per cent
in savings deposits and also an increase of 0.03 per cent in the
number of savings accounts during May was reported by
forty-four selected banks in leading cities of the Tenth District.
Total savings deposits as of June I this year were, however,
10.5 per cent smaller and the number of depositors 5.3 per cent
less than on June I, I 932.
Savings deposits and savings accounts, as reported by the
forty-four banks, for the three dates of comparison:
June
Ma y
June
1,
1,
I,
3
193->------1933·----··················-···············193'2·-··-··-----
Savings Accounts
358,96'2
358,849
379,04 1
Savings Deposits
1, 97,457,472
96,847,34o
108,931,053
Business Failures
A further improvement in business mortality was recorded
in May. This District had 92 defaults, or 29 less than a month
ago and 39 less than a year ago. This was the lowest number
for any May in ten years and consisted of 10 manufacturing,
77 trading, and 5 other commercial failures. The amount of
liabilities involved, although 7.8 per cent larger than in April
and the largest since January, was the smallest May total
since 1929 and equivalent to 71.9 per cent of the ten-year
average for May.
The number of insolvencies in the United States was the
smallest for any month in four years, with liabilities the smallest
since September, 1931, and for any May since 1929.
Business failures as reported by Dun and Bradstreet, Inc.:
TENTH
Number
May 1 933········- -- 9'2
April 1933.·-···121
May 193
131
Five months 1933................ 508
Five months 1932·-········-···· 713
DISTRICT
Liabilities
$ 1,595,439
1,479,485
3,027,577
7,832,737
17,750,02'2
UNITED STATES
Number
Liabilities
1,909 1, 47,97 1,573
1,921
51,097,384
2,788
83,763,521
11,075
292,245,839
14,745
460,352,836
Trade
Reports from both wholesale and retail firms indicate a
decided improvement in general trade conditions in this District
during May. Dollar sales of all five reporting wholesale lines
were substantially above the April volume, with the total for
the five lines combined showing an increase of 19.5 per cent,
the first increase in five years and the largest in fourteen years
Reporting
Stores
Dry goods .... - - - 6
Groceries........................ 5
Hardware·--··················· 9
Furnitur
5
Drug
6
-10.0
1.13 1.04
3.9
Collections same month last year 33.7.
-
7.4
9.8
of record. Compared to May, 1931, sales of dry goods increased
1.8, groceries 7.2, hardware 14.3, and furniture 25.7 per cent,
with those of drugs showing a loss of but 0.7 per cent. Sales
of the five lines combined were 7.0 per cent larger than a year
ago, the first increase shown for any month over the corresponding month of the preceding year since September, 1929,
compared to September, 1928, and the largest since April,
1929, compared to April, 1928. Wholesalers of dry goods and
furniture reduced their inventories 5.9 and 3.0 per cent, respectively, in May and stocks of groceries were 0.9, furniture
3.0, and drugs 0.7 per cent larger on May 31 than on April
30. Stock reductions since May 31, 1932, ranging from 12.1
per cent for groceries to 27.1 per cent in furniture were reported by the various lines.
For the first time since 1929 May sales of merchandise in
dollars, at thirty-two reporting department stores in the District,
exceeded the April volume, and not since May, 1930, have
sales for any month shown an increase over the like month of
the preceding year. May sales were 4.6 per cent larger than
in April and o.8 per cent larger than in May, 1932. Cumulative
sales for the year to June I were 14.7 per cent smaller than a
year ago.
Inventory changes for the month were slight but stocks on
hand May 31 this year were 20.2 per cent lighter than on May
31, 1932. Collections in May totaled 35 per cent of amounts
outstanding April 30 as compared to 34 per cent in April and
33.7 per cent in May, 1932.
Grain Marketing
Higher prices were an effective stimulant to the marketing of
all classes of grain, except kafir, in May. The month's receipts
of wheat, corn, oats, rye, and barley, at the five principal
markets of this District, were considerably larger than the
totals for April this year or May last year. Arrivals of wheat
were the heaviest for any month since September and, excluding May, 1931, the largest for that month since 1921. Marketings of corn were the largest for any month since April, 1931,
and of rye since October, 1930, with the May total for both
the largest since I 922. Offerings of oats were lighter than a
month ago but the heaviest for any May in three years. Kafir
was in light supply, showing a decrease of 21.8 per cent as
compared to April and 42.6 per cent as compared to May, 1932.
WHOLESALE TRADE IN THE TENTH FEDERAL RESERVE DISTRICT
OUTSTANDI NGS
SALES
AMOUNTS COLLECTED
May 31, 1933 compared to
May 1933 compared to
May 1933 compared to
Apr.30,1933 May31,1932
Apr. 1933
May 1932
Apr. 1933
May 1932
25.0
1.8
1 5·5
0.3
-15.3
- 3.6
l 5.6
7.2
3•7
- I.I
15.5
19.2
2 ·7
5.6
-3-4
25.1
14.3
32 -5
2 5-7
7.5
-u.6
42.1
43.4
- 4.3
1.0
- 6.5
9.4
- 6.8
9.2
- 0.7
STOCKS
May 31, 1933 compared to
Apr.30,1933
May31,193'2
- 5.9
-16.8
-1'.2,I
1 5.4
--'J.7.1
-18.'.2
-
THE MONTHLY REVIEW
4
Receipts of six classes of grain at the five markets:
Wheat
Corn
Bushels
Bushels
Hutchinson .... _ 1,181,250
Kansas City·--· 5,660,800 2,167,500
Omaha ............_ 1,203,200 2,318,400
St. Joseph.____.
3o5,6oo 1,185,000
27,300
Wichita·---······· 1,440,000
May 1933·--·····
April 1933.·-····
May 1932·-·······
5 Mos. 1933 ......
5 Mos. 1932......
Oats
Bushels
Rye
Bushels
Barley
Bushels
230,000
348,000
388,000
3,000
28,500
74,200
27,200
68,800
1,750
969,000
3,6o7,100 1,071,500
1,330,600 373,000
15,534,650 4,231,500
7,601,850 3,125,500
102,700
97,750
44,95o
39,000
247,850
9,790,850 5,698,200
4,608,450
9,1u,150
31,708,900
6o,808,500
93,6oo
24,900
317,700
81,800
Kafir
Bushels
19,500
n6,200
135,700
173,500
236,400
680,300
357,650 1,542,400
Cash wheat at Kansas City opened and closed the month at
69 cents per bushel for number I hard and dark. Number '.2
mixed corn advanced 5, number '.2 oats 1, and number '.2 kafir
10 cents per bushel in May to close at 40½, '.25½ and 8'.2 cents
per bushel, respectively. Rye and barley failed to improve
their positions opening and closing at 49 and 31 cents per
bushel. Adva~ces the first three weeks of June carried wheat
to 83¼ cents, corn 44½, oats 36, rye 67, barley 40, and kafir
f,1.03 cents per bushel at Kansas City on June '.24.
The 1933 low on wheat was 41, corn 21, oats 17, rye 31½,
barley 2'.2½, and kafir 4'.2 cents per bushe.1. W~th ~arketing
costs practically stationary, any advance m gram prices goes
to the producer and advances from the year's lows have increased farm prices of most grains 100 per cent or more, but
they are still substantially below pre-war or post-war averages.
In May wheat sold at the best level since January, ~93'.2, ~nd
corn at the highest price since December, 1931. Closing prices
in May, 193'.2, were: wheat 5'.2½; corn 30½; oats 23; rye 4'.2;
barley 33; and kafir 55 cents per bush~l.
. . .
New wheat is now arriving at termmal markets m limited
quantities and, as a considerable portion _is running high in
protein, there is a tendency to lower premmms.
Flour Milling
The May output of flour at Tenth District mills was the
heaviest for that month in three years and 10.7 per cent larger
than a year ago. Compared to April production declined 7.7
per cent, whereas, it generally increases about 8 per cent. The
unfavorable comparison was due primarily to the unusually
heavy April volume.
Grindings by these mills for the eleven months of the ~Id
wheat year are estimated at '.22,046,89'.2 barrels compared with
'.2'.2,615,956 barrels during the like part of the 1931-3'.2 wheat
year.
Output for the three periods of comparison as estimated
from the weekly reports of southwestern mills to the Northwestern Miller:
Atchison ............. _ _ _ __
Kansas City-----····················
Omaha ...... _ _ _ _ _ _ _ __
Salina.. _ _ __ _ _ _ _ __
Wichit...___ __ _ _ _ _ __
Outside..__ ____ _ _ __
May 1933
Barrels
134,135
583,564
IIl,830
125,169
165,991
951,866
April 1933
Barrels
139,323
56o,781
II 2,933
197,184
205,897
1,028,337
May 1932
Barrels
132,831
543,013
66,671
150,183
188,626
790,289
Total
______
2,072,555
2,244,455
1,871,613
ltlJnited States.--- ····· - - - - - 5,802,085
6,on,894
5,224,780
•Represents about two-thirds of the total output in the United States.
Flour business was much better than usual the first three
weeks of May. Most bookings were for small lots for shipment well into the new crop year and demand was general,
with all classes buying freely. With bakers and jobbers generally well supplied with flour for their immediate needs, and as
a result of the recent heavy bookings, sales slumped naturally
the closing week of the month. Mills experienced some difficulty in securing shipping instructions on old contracts. Export
trade was inactive and the domestic market was offered a
substantial quantity of resale flour toward the end of the
month. Prices fluctuated narrowly throughout the month
and closed practically unchanged.
Crops
Present weather conditions are ideal for the harvesting of
winter wheat and other small grains and for haying, but growing crops in virtually all parts of the District are in immediate
need of generous rains. Wheat, oats, pastures, potatoes, small
fruits, and gardens have been damaged severelf by ~he .excessive temperatures and dry weather, and corn 1s begmnmg to
suffer.
Government estimates of winter wheat production underwent slight changes between May 1 and June 1 and the June l
condition of 64 per cent for the nation, with abandonment
the highest of record, continues to forecast the smal;est crop
since 1904. Harvest which became general by the third week
of June, is making rapid progress. .
.
.
United States Department of Agriculture estimates of wmter
wheat production, in Tenth District states and the United States:
PER CENT CONDITION
June I May I June I
1933 1933 1932
Colorado·--······· 37
40
42
Kansas.............. 50
55
50
Missouri............ 74
76
57
Nebraska.......... 74
70
51
New Mexico.__ 25
44
49
Oklahoma·---··· 51
55
54
Wyoming.......... 50
65
65
Seven states·-···
United States._.
57.8
64.0
70.8
66.7
57.8
64.7
ESTIMATED PROD U CTION
June 1, 1933 May 1, 1933 Final 1932
Bushels
Bushels
Bushels
2,104,000
2,104,000
4,383,000
56,696,000 58,486,000 106,398,000
16,016,000 16,016,000 14,851,000
27,310,000 24,276,000 24,600,000
990,000
990,000
1,320,000
25,432,000 23,936,000 43,626,000
476,000
578,000
1,100,000
129,024,000 126,386,000 196,278,000
341,017,000 337,485,000 462,151,000
Hot, dry weather in June caught wheat in eastern and northern parts of the District in the milk, or critical stage of development, causing premature ripening and shrivelii:i,g, Oats, rye,
and barley have also been adversely affected, with many fields
being cut for hay or pastured.
Corn planting, which was delayed somewhat in May by
frequent rains and wet fields, is virtually completed and,
although all areas are needing moisture, corn is holding up
well despite the dry weather. Fields are, on the whole, well
cultivated and clean.
The first cutting of alfalfa is nearing completion, with that
of clover and other grasses commencing. The condition of
cotton in Oklahoma and New Mexico is fair and chopping is
underway. Digging of potatoes in the Kaw Valley of Kansas
is expected to begin about July 1, or a week later than last year.
Production, based on the June I condition, is estimated at
l '764,000 bushels, or 5'.20,000 bushels less ~han a rear ago.
Acreage was reduced 18 per cent this year, with plantmg somewhat later than last year. Planting of potatoes in the higher
sections of northwestern Colorado has commenced.
A '.25 per cent increase is estimated in the sugar beet acreage
of Colorado, Nebraska, Wyoming, Montana, and western
Kansas, and the beets are now being thinned. The Ozark
strawberry crop has been marketed at unsatisfactory prices.
Regarding June 1 crop conditions in their respective states,
the State Boards of Agriculture commented in part as follows:
COLORADO: "Crop prospects improved materially during May, but
June I condition was generally below average. Spring wheat, oats, barley,
and apples show promise of larger production than last year, while the condi-
5
THE MONTHLY REVIEW
tion of all other crops is below that of a year ago. Above normal precipitation during late April and May broke the long drouth in eastern Colorado
and supplied ample soil moisture for seeding spring crops. The irrigation
water supply in all areas is generally ample except in the Arkansas valley
where a shortage of water is in prospect again this season. A severe wind
storm May 22nd swept the entire state, causing considerable damage to crops
particularly in eastern counties. Farm work continues from one to two weeks
late and all plant growth has been delayed because of cool weather."
KANSAS: "Soil moisture is inadequate in the western two-thirds of the
state and barely sufficient for current needs in the eastern third. The condition of spring sown small grains is below average and yield prospects have
declined from the effect of high early June temperatures. Rye production
will be small. Hay crops, both tame and wild, are rated below average. All
crops of tree fruits will be short again this year, but the apple crop will be
larger than the very short crop of 1932. Improvement in winter wheat, resulting from May rains, was offset by the adverse effect of excessive early
June temperatures. Abandonment may exceed earlier expectations in central,
southcentral, and some western counties because of dry weather, high temperatures, and hail damage."
MISSOURI: "During June, Missouri wheat lost in appearance consistently
everywhere. Chinch bugs are more prevalent than in recent years. Hay of
all kinds is the most promising since 1929 and shows the effects of rain shortage in the early spring for the northwestern counties, and moisture excesses
of the southern sections. Pastures during May improved 13 points, rising
75 per cent to 88 per cent for June, which is the best pasture prospect tor
any month since July, 1929. Grazing is good in all sections of the state.
Fruit prospects are much better than in 1932 but below average."
NEBRASKA: "The general crop outlook in Nebraska is not good. Much
of the wheat has already been lost. Moisture conditions in the western twothirds of the state have been excellent but the eastern third of the state has
been in need of additional moisture for two months. Corn and most of the
small grain crops got off to a slow start and weather conditions since June
first, especially in the eastern half of the state have been extremely unfavorable. Small grains in the eastern third of the state have suffered considerable
injury and the final outcome will depend to a large extent on weather in the
immediate future.
"The condition of fruit crops are as follows:
apples 69 per cent, peaches
5 per cent, pears 50 per cent, and cherries 50 per cent. In general, fruits suffered injury from extremely low temperatures late in the winter which followed
a period of relatively warm weather.
"Grass is excellent in western and southwestern Nebraska. It is very good
throughout central sections but poor in eastern counties, particularly the
northeastern section. Stands of alfalfa were thinned by winterkill in western
Nebraska and drouth has reduced the condition in northeastern counties,
Wild hay is generally very promising in all sections except east central and
northeastern sections."
NEW MEXICO: "The June 1st condition of New Mexico crops is the
lowest in many years. The weather all spring up to the middle of May was
below normal temperatures but the latter half of May almost record maximum
temperatures have been reached and lack of rainfall and winds have left the
soil too dry for the proper preparation for crops. Lack of moisture and high
winds have been destructive to this year's wheat crop. All hay crops are
beginning this year's crop year in below the average condition and the first
cutting of alfalfa hay has been short due to late cool spring. Fruit prospects
are the poorest in years. With few exceptions, about all fruit producing localities report almost a failure for apples, pears, and peaches."
OKLAHOMA: "High winds in May rapidly depleted soil moisture and
sand storms blew out and covered up many acres of crops. Since June I weather
has been hot and dry and practically all areas of the state are urgently in need
of rain. Dry weather and sand storms during May were detrimental to tame
hay in the western third of the state. The first cutting of alfalfa was unusually
light in those areas but good in other sections. Dry weather during May
greatly lowered prospects for summer grass, particularly in the western and
northwestern counties; grass is excellent in the eastern counties. Severe winter
weather resulted in a near failure of all fruits except grapes, apples, and cherries."
WYOMING: "Crops on June I were generally not up to normal. Early
dry conditions and cool, wet weather immediately following delayed planting
and the early sown crops are from one to two weeks late. The abundant supply of moisture and warm weather the last week in May, however, resulted
in rapid growth and present growing conditions are very promising. The tame
hay crops in Wyoming are generally in a below normal condition because of
the cool, late spring and the damage from the adverse winter conditions which
resulted in heavy winterkill. The abnormal supply of moisture through all
localities promises a good supply of wild hay."
Grasshoppers are reported hatching out in menacing numbers in scattered sections of northcentral Nebraska, Kansas,
and Oklahoma, with few farmers financially able or willing to
purchase poison bait to combat them. State funds are being
employed in Nebraska to fight the pest.
To supply feed for the drouth stricken areas of western
Kansas, sudan grass, feterita, and early maturing varieties of
sweet sorghum and kafir are being recommended by agronomists. These crops may be planted as late as July, provided
moisture is received in the meantime.
Livestock
Higher livestock values, delayed marketing, and a less
favorable feeding ratio, due to a more rapid rise in grain prices,
were the chief incentives to heavier marketings of livestock in
May. Arrivals of cattle and calves at the six principal market
centers of the District were the largest for any May since 1929
and about equal to the ten-year average numbers. Receipts
of sheep declined IO per cent as compared to April, but, excluding May, 1931, the May run was the heaviest in years.
Swine, including hogs shipped direct to packers' yards, were in
about normal supply although marketings were 8 per cent
lighter than a year ago. Receipts of horses and mules totaled
6,223 head in May, 8,669 in April, and 4,883 head in May, 1932.
Disregarding more liberal supplies, the demand for livestock
improved in May and prices of all classes advanced. Cattle
sold off somewhat at the close but advanced 25 to 75 cents
per hundredweight, and hogs were '/,I and sheep and lambs
50 cents to '$1 higher for the month. The Kansas City top
of 'lq for cattle was 60 cents under a year ago and the highest
since November. Best hogs reached '/,4.90, or within 10 cents
of the 1932 top made in July and selling '/,1.45 above the May,
1932, price. At 'l,7.65 spring lambs were the highest since
April, 1932, and 6o cents higher than in May last year.
The demand for feeder lambs and stocker and feeder cattle
was brisk at higher prices. Supplies of the former were moderate
and of the latter liberal, and offerings were readily absorbed.
Countryward shipments of calves from four markets were the
largest since January and for any May in recent years, and
those of cattle and sheep the largest since December.
RANGES AND PASTURES: The June 1 condition of
cattle and calves on western ranges was reported by the Federal
Division of Crop and Livestock Estimates at 84 per cent of
normal, compared with 81 per cent on May I and a ten-year
average of 89.5 per cent. Sheep and lambs are in only fair
condition, with a June I condition of 83 per cent of normal,
the lowest in the eleven years of record compared with a tenyear average of 92.7 per cent. Range feed is late but fairly
good. Winter and spring losses of cattle and calves have been
light except in a few localities and a fair to good calf crop is
in prospect. Losses of sheep and lambs have been heavy,
particularly in the northern areas. Trading in both cattle and
sheep has been limited.
The Secretary of Agriculture recently announced reductions
from the I 93 I schedules of grazing fees on public lands in
eleven western states, of 54 per cent for sheep and lambs and
37.6 per cent for cattle. This reduction compares with a flat
50 per cent for both sheep and cattle that was in effect last
year. Hereafter fees will be on a sliding scale depending on
livestock values.
Shearing is well advanced and wool prices increased further
in May with the bulk of sales reported at 19 to 20 cents per
pound, or II cents above last year's average price. Wool
6
THE MONTHLY REVIEW
buyers are active. Hide prices also made additional gains in
May with country run green salted hides now quoted at 5½
to 7½ cents per pound as against the 1932 low of 2¼ cents.
According to the Department of Agriculture the spring
movement of cattle into the Blue Stem pastures of Kansas
and the Osage pastures of Oklahoma was about 7 per cent
larger than last spring and 5 per cent larger than two years
ago. Receipts from January 1 to June 1 totaled about 31 5,ooo
head as against a five-year average of 356,000 head. The early
movement was light and the May movement heavy. Pastures
are reported as excellent with cattle making good gains and
in good flesh.
Livestock owners in southwestern Kansas are, due to the
long drouth, confronted with an acute shortage of water and
feed for livestock at present.
Packers purchased more cattle, calves, and sheep, at the
six markets, in May than in April this year or May last year.
Compared to a year ago the gains were: cattle 10.2; calves
15.4; and sheep 1 per cent. Purchases of hogs, including those
shipped direct to packers' yards, were 13.3 per cent greater
for the month but 6.8 per cent under the total for May, 1932.
In numbers, cattle were equal to 90.5, calves 89.5, swine 105,
and sheep and lambs no.9 per cent of the May average for
the years 1923 to 1932, inclusive. May slaughter of cattle
was the largest since 1928, calves since 1929, swine, disregarding 1932, since 1928, with sheep showing little change the past
five years.
Cold Storage Holdings
A net seasonal into-storage movement of lard, eggs, and
butter in the United States substantially larger than last year
or the five-year average was reported for May by the Bureau
of Agricultural Economics, United States Department of
Agriculture. The in-movement of cheese was larger than a
year ago but below normal, and, contrary to seasonal tendencies, holdings of pork and miscellaneous meats increased sharply
and inventories of lamb and mutton moderately. Stocks of
beef and poultry declined by considerably less than the usual
amount.
June 1 holdings of all commodities except eggs and creamery
butter were smaller than one year earlier or the five-year average for that date. Cold storage holdings of eggs (cased and
frozen combined) were 4.3 per cent and creamery butter 8.7
per cent in excess of the five-year average, whereas, stocks of
beef were 39.5, pork 18.3 lamb and mutton 21.7, poultry 16,
miscellaneous meats 31.2, lard 23, and cheese 19.3 per cent
below norm al.
Kansas City ..............
Omah
St. Joseph..................
Denver
Oklahoma City.-.......
Wichita......................
112,383
123,593
29,935
29,848
19,787
18,616
*June I
1933
30,373
667,955
1,843
38,096
7,809
50,798
110,381
8,047
2,410
34,555
48,458
Beef, lbs. - --............................
Pork, lbs................... _ _ _ _
Lamb and mutton, lbs.......................
Poultry, lbs.·-···---**Turkeys,lbs..................... _ _ _ _
Miscellaneous meats, lbs..____.............
Lard, lbs ....... _ _ _ _ _ _ _ _
Eggs, cases_________
Eggs, frozen {case equivalent)..........
Butter, creamery, l b _ _ _ _ _
Cheese, all varieties, lbs.....................
*Subject to revision.
••Included in Poultry.
•338,127
219,119
119,712
5,5 25
73,526
4,670
4,042
64,449
68,177
June
I
1933
30,658
630,360
1,773
45,824
9,179
44,9o3
71,895
4,857
1,798
9,398
43,626
June I
1
1932 5-Yr.Av.
50,238
35,655
795,866 817,787
2,353
1,018
44,829
45,3T2
8,271
7,546
59,625
73,885
128,103 143,26o
5,380
7,464
2,560
2,714
31,803
29,160
52,118
6o,073
(ooo omitted).
According to estimates based on the weekly reports of the
American Petroleum Institute, the daily average flow of crude
oil from wells in Oklahoma, Kansas, Wyoming, New Mexico,
and Colorado totaled 610,000 barrels in May. This figure
reflects an increase of 3.9 per cent in the daily average production and 7.5 per cent in gross production for the month
over the official estimate of the Bureau of Mines for April.
Output during May and the first five months of the year were
relatively the same as a year ago.
Increased production in the east Texas area resulted in an
estimated gross production for the United States of 83,u2,ooo
barrels in May against 65,313,000 barrels in April and 68,523,000
barrels in May, 1932.
Gross production of crude oil for the five states and the
United States:
Oklahom
Kansas ....
Wyoming...
Colorado
New Mexico
··-···········--··-·
Total five states ......
Total United States....................
196,479
20 5,355
109,654
183,840
12,129
14,120
May 1933.___ .............
883,110
334,162
49,308
7 21 ,577
April 1933..................
802,068
277,064
41,119
773,248
May 1932. ___ .............
294,347
702,152
959,823
37,949
5 Months 1933 .......... 1,442,222 211 ,453 3,96 2,754 3,337,719
180,567 4,586,721 3,875,554
5 Months 1932 -··----· 1,509,168
•Includes 187,468 hogs shipped direct to packers' yards.
37,694
13,724
3,735
10,345
65,498
59,026
35,317
280,168
221,062
*May 1933
Barrels
April 1933
Barrels
May 1932
Barrels
13,349,000
3,457,000
913,000
79,ooo
1,118,000
11,960,000
3,564,000
902,000
71,000
1,092,000
13,654,000
2,935,000
1,158,000
103,000
1,129,000
18,916,000
83,112,000
17,589,000
65,313,000
18,979,000
68,523,000
The first week in May practically all purchasing companies
posted a flat price of 25 cents per barrel for mid-continent oil,
regardless of grade, as against a previous price range of 28 to
52 cents per barrel per gravity basis but returned to the old
schedule June 17.
Development operations were somewhat less active, both for
the District and the United States, in May than in the preceding month or the like month last year.
MAY MOVEMENT OF LIVESTOCK IN THE TENTH DISTRICT
STOCKERS AND FEEDERS
RECEIPTS
Hogs
Sheep
Calves
Calves
Cattle
Hogs
Sheep
21,920
6,803
6,348
May
1
Petroleum
Meat Packing
Cattle
Cold storage holdings m the United States as of June
with comparisons:
5,263
2,108
534
3,443
11,348
8,897
4,853
49,165
27,818
9,818
1,865
808
759
13,250
7,701
6,209
37,470
25,864
PURCHASED FoR SLAUGHTER
Cattle
Calves
Hogs
Sheep
21,559
3 1,7 29
8,794
9,775
52,665
85,880
21,914
10,706
12,317
7,122
71,857
59,3° 1
41,942
274,978
261,311
190,6o4
150,578
172,964
815,896
854,536
16,277
4,695
5,455
1,971
4,054
1,454
•306,524
196,675
114,238
56,526
6o,433
65,639
125,608
159,99 2
93,797
15,416
11,049
12,290
800,035
418,152
33,906
27,296
7o6,124
384,211
29,37 1
858,632
414,189
136,777 3,497,446 1,843,479
140,219 3,826,952 2,164,o61
7
THE MONTHLY REVIEW
Bituminous Coal
Output of bituminous coal at mines in the six coal producing
states of the District, as estimated from the weekly reports of
the United States Bureau of Mines, totaled 991,000 tons in
May, an increase ·of 4.5 per cent as compared to April and 15.9
per cent as compared to May, 1932.
United States production as reported by the Bureau of
Mines totaled 22,346,000 tons in May, 19,523,000 tons in April,
and 18,384,000 tons in May, 1932.
Production of soft coal in the United States and the six
states is shown in the following table:
Colorado. __··- ·· · · · · · - - - - Kansas. ____ ··-······ · · - - - -
Missour._·_ __ _ ___ _
New Mexico.---···························
Oklahorn..__ __ __
Wyoming........ _ _ _ _ __
*May 1933
Tons
332,000
91,000
185,000
78,000
*April 1933
Tons
311,000
109,000
187,000
65,000
May 1932
Tons
206,000
90,000
193,000
77,000
45,000
30,000
246,000
33,000
256,000
260,000
Total six states ...... _ _ _ _
991,000
948,000
855,000
Total United States .. ·-···············
22,346,000
19,523,000
18,384,000
*Estimated from the weekly reports of the United States Bureau of Mines.
Zinc and Lead
Shipments of zinc ore from mines in Oklahoma, Kansas, and
Missouri during the five weeks ended June 3 were 5.6 per cent
heavier than in the corresponding five weeks last year, but,
due in part to several of the larger producers being shut down,
15.8 per cent lighter than in the preceding five weeks. Lead
ore shipments, although held down somewhat by restricted
production and limited supplies, were 26.5 per cent larger
than for the five weeks' period ended April 29 and 132.1 per
cent in excess of the total reported for the five weeks ended
June 4, 1932.
The tonnage and value of zinc and lead ore, shipped from
the Tri-state district during the periods of comparison:
Oklahoma. __ ··························-········
Kansas .... ·-···············--- - Missouri............................................
5 Weeks ended June 3, 1933....
5 Weeks ended April 29, 1933....
5 Weeks ended June 4, 1932.._
ZINC ORE
Tons
Value
n,709 $ 304,175
4,504
II 5,314
475
12,114
16,688
19,830
15,803
22 Weeks ended June 3, 1933.... 100,631
22 Weeks ended June 4, 1932.... 69,819
$ 431,6o3
390,108
241,104
1,931,767
1,179,836
LEAD ORE
Tons
Value
2,362 $ 98,914
722
30,980
145
6,080
3,229
2,552
1,391
11,881
12,618
$135,974
91,266
34,775
427,052
463,736
Zinc ore advanced $5 and lead ore '$10 per ton during May,
closing at t,30 and '$50 per ton, respectively.
In May, 1932,
zinc ore sold at the record low price of $14 and lead ore at '$25
per ton. This year's low for zinc ore was 'l,16 in February and
that of lead ore '$32. 50 per ton the first nine weeks of the year.
Prices of zinc ore are now the highest since October, 1930,
and of lead ore the highest since September, 1931.
Cement
Production and shipments of finished Portland cement at
mills in this District exceeded that of April this year and May
last year, whereas, United States production and shipments,
although larger than in the preceding month, were somewhat
smaller than a year ago. Tenth District production, which
was the largest since November, and shipments, the largest
since October, approximated 50 per cent of the 1922-31 May
average volume.
National and District stocks of cement were reduced during
May and at the close of the month the former were the lowest
since November 30 and the latter the lowest since June 30,
1932.
Production, shipments, and stocks of Portland cement as
reported by the United States Bureau of Mines, in thousands
of barrels:
TENTH DISTRICT
Production Shipments Stocks
May 1933·-·····648
771
1,761
April 1933...... _
500
682
1,784
May 1932·-··-··
581
739
1,722
UNITED STATES
Production Shipments
6,266
6,748
4,183
4,949
6,913
8,020
Stocks
20,060
20,542
25,394
Lumber
The volume of business at 157 reporting retail lumber yards
in cities and towns throughout the Tenth District showed a
decided improvement during May, both as compared to April
this year and May last year. Sales of lumber in board feet
were 23.7 per cent and dollar sales of all materials 12.7 per
cent larger for the month, and 43.7 and 18.4 per cent, respectively, ·larger than in May, 1932. Collections improved slightly
totaling 22.7 per cent of amounts outstanding at the close of
the previous month as compared to 20.7 per cent reported for
April and 21.5 per cent for May, 1932.
Lumber inventories were practically unchanged during the
month but stocks on hand M ay 31 were 13.3 per cent smaller
than a year earlier.
Changes in the volume of business at the reporting yards
are indicated by the following percentages of increase or decrease:
M ay 1933 compared to
Sales of lumber, board feet ............................... .
Sales of all materials, dollars ........................... .
Stocks of lumber, board feet·--·························
Outstandings, end of month ..............................
April 1933
23.7
12.7
0.1
3.1
May 1932
43.7
18.4
- 13.3
-1 8.9
Building
New construction operations failed to show any material
improvement in May, there being little change in the number
and estimated cost of construction of buildings, alterations,
and repairs for which permits were issued by the building
departments of seventeen cities of this District. The report
by cities follows:
Albuquerque, N. M.·-- ···············
Cheyenne, Wyo.
Colorado Springs, Colo ..-...........
Denver, Colo ...............................
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 .............................
Total 17 cities, May·--···············
Five month"--------
PERMITS
1933
1932
24
79
20
58
46
23
422
49 2
12
19
40
30
162
148
36
49
78
71
103
73
43
44
7
9
6
8
34
37
6o
55
56
70
62
85
1,264
4,509
ESTIMATED CoST
1933
1932
$ 38,007
$ 11,915
13,813
9,44°
20,307
5,084
474,085
194,838
33,450
3,300
25,920
16,090
159,900
153,700
29, 2 95
26,715
161,547
85,739
140,633
I 52,245
14,170
6,167
2,000
2,050
11,520
2,750
13>435
25,47°
47,885
3 1,900
38,067
23,787
83,230
35,53°
1,297
$ 818,428
1,1,275,556
5,~69
3,216,519
5,734,956
Total and residential construction for the District as a
whole, reported by the F. W. Dodge Corporation, although
somewhat larger than the April totals, were but a fraction of
normal.
Total construction awards in this District and the United
States as reported by the F. W. Dodge Corporation:
TENTH
May ................
April... .............
Five months._.
' 4,094,541
2,026,945
15,250,9¢
DISTRICT
$ 6,004,524
5,767,5o5
26,201,650
UNITED STATES
$146,221,200
121,704,700
554,00 4,700
$ 77,171,700
56,573,000
3 29,77 1,500
8
THE MONTHLY REVIEW
Business Conditions in the United States
By the Federal Reserve Board
P(ftClNT
10,0
INDUSTRlAL PRODUCTION
130
I]()
1'20
\10
100
,A.
-
/-
120
\
'"'\
,0
IO
110
100
90
~~
80
'\...
10
I
'\.,..,r- ✓
'°
so
19211
70
60
so
192'1
Index number of industrial production, adjusted for seasonal variation. (1923-1925
average
100.) Latest figure, May, 76.
=
PUCUT
PUIC[NT
110
120
FACTORY EMPLOYMENT >JlO PAYROLIS
e - - -- / ~
,~ -~
~
110
I
I __:..,-\\
'iA
'IO
80
90
~
~-'••-•n1
POI/fats\
~
70
~
t50
00
.. '-
•,_•"\
50
"
-
70
60
'~
'\A
...
V
JO
19211
1930
1929
1931
193.
JO
1933
Indexes of factory employment and payrolls, without adjustment for seasonal variation. (1923-1925 average
100.) Latest
figures, May, employment, 60; payrolls, 42.
=
PtltCC•T
1..
120
100
100
80
IO
60
...
"°
20
20
Indexes based on three month moving averages of F. W. Dodge data for 37 Eastern
States, adjusted for seasonal variation. (1923 1925 average
100.) Latest figures May,
total 17, residential 11.
=
PtRCrNT
PCR CLHT
120
Wt10L[SAL E: PRICES
110 1--,\__,.,
100
qo
'":/
I
1
120
110
~.. --'\./~"~·f~mProdu.:rs
100
F=====t==::?.ro=""=--•-7'1~=-+--+---+---I
,.:'
~o
60 t-----i't,,,.;=c=!~=d•=
t1e.:-.;-~
· - ~ -+---
-+-- - - t &o
,o t - - - + - --4--__µ...\_.,;;::,,
~~ _ _ _ _- - t ,o
601---+ - - - + - - - + - ' ~ • ~
' -- ~ ~ - - - r - ! 60
~o i - - - + - - - t - - - + - - ~-,~,,,-,-1,--,..i---t ~o
401----+---+----+--+----+'j~ ·--; 40
Indexes of the United States Bureau of
Labor Statistics (1926
100). Latest figures, May, farm products, 50.2; foods, 59.4;
other commodities, 66.5.
=
Industrial activity increased rapidly in May and the early part of June, and there
was an advance in the general level of commodity prices. Prices of raw materials traded
in on organized exchanges showed wide fluctuations, and a general rapid upward movement, while prices of other commodities, as a group, showed relatively little increase.
PRODUCTION AND EMPLOYMENT: Volume of industrial production, as
measured by the Board's seasonally adjusted index, increased from 67 per cent of the
1923-1925 average in April to 76 per cent in May, as compared with 60 per cent in
March, 1933. Operations at steel mills continued to increase in May and the early
part of June, contrary to seasonal tendency, and in the week ending June 24 activity
is reported at about 50 per cent of capacity. Output of the automobile industry was
larger in May than in April and, according to trade reports, has increased further in
June, although a decline is usual at this season. Lumber output in May showed a
considerable increase from previous low levels. Activity at textile mills increased
sharply to a higher level for the season than in any other month since November, 1929;
and output of shoe factories in May was larger than in May of any previous year.
Employment in manufacturing industries increased considerably between the middle
of April and the middle of M ay, and the Board's index, which is adjusted to allow for
seasonal variations, advanced from 58 per cent of the 1923-1925 average to 61 per cent.
Factory payrolls increased by a larger percentage to about 42 per cent of the 19231925 average.
Value of construction contracts awarded during May and the first half of June, as
reported by the F. W. Dodge Corporation showed a non-seasonal increase from the
extreme low levels prevailing earlier in the year .
DISTRIBUTION: Freight traffic increased from April to May by more than the
seasonal amount, reflecting chiefly larger shipments of miscellaneous freight and merchandise. Department store sales, which had increased substantially from March to
April, showed little change in May.
Wholesale commodity prices, as measured by the weekly index of the Bureau of
Labor Statistics, advanced from 60.3 per cent of the 1926 average in the week ending
April 15 to 64.5 per cent in the week ending June 17. This increase reflected a rapid
rise in the prices of commodities traded in on organized exchanges, including wheat,
cotton, wool, hides, lard, sugar, silk, rubber, and nonferrous metals, and also in the
prices of flour, textiles, and leather; while prices of petroleum were reduced and most
other prices showed relatively little change.
FOREIGN EXCHANGE: The value of the dollar in the exchange market declined
by 18 per cent between the middle of April and June 21. On the latter date the noon
buying rate on cable transfers for the French franc was 4.81 cents, as compared with a
gold par of 3.92 cents, and the English pound was quoted at $4.16 as compared with
a rate of $3.41 on April 12.
BANK CREDIT: A return flow of 1,156,000,000 of currency from circulation and
purchase of $II8,ooo,ooo of United States Government securities by the reserve banks
placed a considerable volume of reserve funds at the disposal of mem her banks during
the five weeks ending June 21. These funds were used in part to reduce further the
mem her banks' indebtedness to the reserve banks and the reserve banks' holdings of
acceptances, and in part were added to the member banks reserve accounts.
Loans and investments of member banks in 90 leading cities increased by $175,000,000
in the four weeks ending June 14, representing chiefly a growth of security loans and
other loans at New York City banks. Loans to brokers and dealers in securities made
by New York City banks increased by $160,000,000 during the period, while security
loans to other customers declined. Net demand deposits at the reporting banks increased by over $500,000,000, reflecting in part a further growth of bankers' balances,
principally in New York City.
Money rates in the open market continued to decline during the period and in the
middle of June were only slightly above the lowest levels of recent years.
On May 26 the discount rate of the Federal Reserve Bank of New York was reduced
from 3 to 2½ per cent and in the following three weeks rates were lowered from 3½
to 3 per cent at the Federal reserve banks of Chicago, Boston, San Francisco, Philadelphia, St. Louis, and Cleveland. At the other Federal reserve banks a rate of 3½
per cent prevails.
@FedFRASER