The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
THE MONTHLY REVIEW Of Agricultural, Industrial, Trade and Financial Conditions in the Tenth Federal Reserve District FEDERAL Vol. 20 RESERVE BANK OF KANSAS KA:r-:sAs CITY, Mo., JuLY 1, 1935 F REQUENT and excessive rains in May and the first three weeks of June, although resulting in improved prospects for all crops in the Tenth District but corn and potatoes, delayed seeding operations, retarded trade and the marketing of farm products, and caused serious flood losses. The general moisture situation is now the best in four years with only a comparatively small area in need of additional rains at present. Corn planting is four weeks late with about half of the intended acreage in the principal producing areas seeded by June 15 and the early sown corn weedy and badly washed. The outlook for hay and oats is excellent, although harvesting and curing of the first cutting of alfalfa has been difficult. Winter wheat, rye, and barley on unabandoned acreage promise better yields than anticipated earlier. Trade at both wholesale and retail was about unchanged from April to May but was smaller than in May, 1934, dollar sales of five representative wholesale lines combined declining 5.6 per cent and of thirty-two department stores 3.1 per cent. Reflecting improved building activity, retail sales of lumber registered substantial gains for the month and the year. Life insurance sales, off fractionally as compared to April, were 16 per cent under a year ago. Business mortality remained at the lowest levels since 1920. Marketings of all classes of live stock and all varieties of grain but kafir declined for the month. Receipts of cattle and hogs and of all grains were substantially below n011mal for the season and marketings of calves, sheep, and horses and mules above. Operations at meat packing establishments, in keeping with the limited supplies of live stock, declined in all departments for the month and, with the exception of the slaughter of sheep and lambs, were considerably under a year ago. Hog slaughter was conspicuously light, falling 65 per cent below the tenyear average and cattle slaughter was down 18.4 per cent. Flour mill activity was well maintained at schedules only slightly under recent months and inquiries for new crop flour were more numerous. Labor troubles curtailed production of zinc ore and lead ore in the Tri-State district but the output of bituminous coal and Portland cement at Tenth District mines and mills increased and was the largest for the month since 1931. Crude oil production was about unchanged and field activity continued to expand. Member Bank Operations The combined weekly condition statements of fifty-one reporting member banks in leading cities of the Tenth Federal Reserve District disclose futher substantial increases in net demand deposits and investment holdings, little change in loans and discounts, and some reduction in time deposits between May 15 and June 12. CITY No. 7 BUSINESS IN THE TENTH FEDERAL RESERVE DISTRICT Percentages of Increase, or Decrease (-), for May 1935 over April 1935 and May 1934 and for the first five months of 1935 over the like period in 1934May 1935 5 Months 1935 compared to compa,red to Banking Apr. 1935 May 1934 5 Months 1934 Payments by check, 29 cities.................. - o.8 10.2 10.9 Federal Reserve Bank clearings.............. 5.5 21.1 10.9 Business failures, number........................ - 2.5 21.9 -10.8 Busines,s failures, liabilities...................... -44.1 -53.7 -30.9 Loans, 51 member banks·-······················· 0.5 - 4.1 Investments, 51 member banks.............. 4.6 20.5 Net demand deposits, 51 member banks 4.7 28.1 Time deposits, 51 member banks........ - .. - 6.5 - 6.6 Savings deposits, 45 selected banks·-····· 1.1 10.2 Savings accounts, 45 selected banks...... - 0.5 3.6 Distribution Wholesalers' sales, 5 lines combined ..... . - 5.6 - 5.4 Retailers' sales, 32 department stores ... . - 3.1 3.4 Lumber sales, I 56 retail yards ................ 27.1 5.4 Life insurance, written._. _ _ _ __ -6.2 -16.0 Production 2 9•5 36.8 Building permits in 17 cities, value._ ..... - 2.6 Flour ........................................................ - 1.4 0.1 Crude petroleum._..................................... I .3 Soft coal...................................................... 42.0 12.4 Zinc ore (shipped) Tri-State district...._ -74.4 -73.1 -86.o Lead ore (shipped) Tri-State district .... -82.5 21.8 69-4 Cement.--··················································· Grain receipts, 5 markets Wheat.-....................................................... - o.6 -3 1 .5 7.5 90.6 - 3.3 Corn .... •·····-················································ --22.7 6.4 -40.7 Oats·--········· - - - - - - 9.4 -61.7 66.7 Rye·----······-··············-················ --20.0 -73-7 Barler----···································· -43.1 -65-5 Kafir...........·----························ 35.8 Live stock receipts, 6 markets -23.0 Cattle......................................................... . -10.7 20.4 3.1 Calves·--····················································· -u.8 -52.0 1 -65.6 Hogs.·---········································ - 3.7 Sheep.......................................................... - 1 5.5 - 5.5 - 7.7 1 5·5 Horses and mules...................................... -42.0 - 5.6 Meat packing, 6 markets --22.'.l Cattle.......................................................... - 1.6 - 2 9.4 -22.9 9.9 Calves·-···························- - - -17.4 Hogs............................................................ -13.7 -53.8 -68.5 - 6.o Sheep.......................................................... -12.0 10.7 Stocker and feeder shipments, 4 markets Cattle.................. _ _ _ __ 63.2 - 7.0 37-2 5o.5 151.7 Calve.,__ _ _ ········································ - 5.2 -1'.l.8 Hogs ............................................................ -34.I -49.4 -15.1 Sheep ...............................................·-········ -34.4 -53.5 Net demand deposits jumped $24,662,0CX) in four weeks to a new all-time high of $544,133,0CX) on June 12 this year, $II9,508,0CX) above the total as of June 13 last year. Time deposits receded, however, showing a loss of $10,938,0CX) in four weeks and of ju,141,000 in fifty-two weeks and are now the lowest for any weekly reporting date since September, 1927. This Copy Released For Publication In Morning Newspapers June 29. 2 THE MONTHLY REVIEW Total loans and discounts of the reporting banks were about unchanged in four weeks but down 4.1 per cent as compared to June 13, 1934. Investment holdings, exceeding $400,000,000 the past three weeks, are at record high levels, the gain for the month amounting to $17,944,000 and since June 13, 1934, to $68,960,000. By classifications, the largest increase during the four weeks' period was in investments in obligations fully guaranteed, both as to principal and interest, by the United States Government, the increase amounting to $10,335,000, whereas holdings of United States Government securities increased $4,507,000 and "all other" securities increased $3,102,000. Changes in the principal resource and liability items of the reporting member banks in four weeks and fifty-two weeks are reflected in the following table 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 direcL-........ . Obligations fully guaranteed by the U.S. Government.. Other securities.-..................... Reserve with F. R. bank._ ........ . Net demand deposits ................. . Time deposits .............................. Government deposits .................. June 12, 1935 May 15, 1935 June 13, 1934 $598,588,000 t,579,745,ooo t,537,909,ooo 202,164,000 192,984,000 193,883,000 46,218,000 60,983,000 46,295,000 141,181,000 146,689,000 147,665,000 386,761,000 404,705,000 335,745,000 243,837,000 221,769,000 239,330,000 37,3 24,000 123,544,000 n6,813,ooo 544, 133,000 I 56,424,000 15,545,000 26,989,000 120,442,000 121,888,000 519,471,000 167,362,000 17,386,000 113,976,000 82,405,000 424,625,000 167,565,000 16,629,000 Federal Reserve Bank Operations Changes in the principal resource and liability items, as shown by the weekly condition statements of the Federal Reserve Bank of Kansas City and branches, during the four weeks' period ended June 12 were small. Member bank reserve deposits were down 4.6 per cent from their all-time peak of May I 5. Industrial advances increased $130,910 and holdings of bills rediscounted for member banks and of bills purchased in the open market were slightly higher. No purchases of United States Government securities have been recorded the past fourteen weeks. The principal resource and liability items, as of the three dates of comparison, are shown herewith: June 12, 1935 May 15, 1935 June 13, 1934 Total reserves.............................. $206,390,498 $218,600,110 $'162,759,243 Bills discounted ..·-······················· 106,913 97,385 214,281 Bills purchased............................ 126,896 126,779 142,121 Industrial advances.................... 1,137,565 1,006,655 ................... . U.S. securities............................ 106,844,250 106,844,250 91,844,200 Total bills and securities............ 108,215,624 108,075,069 92,200,6o2 Total resources............................ 350,767,981 364,604,315 291,188,024 F. R. notes in circulation.......... 120,374,075 120,252,775 106,939,510 Member banks' reserve deposits 187,805,761 196,828,648 140,346,397 The discount rate of the Federal Reserve Bank of Kansas City, on all classes of paper and maturities, was reduced from 2¼ per cent to 2 per cent, effective May 10. Reserve Bank Clearings A decline of 2.8 per cent in the number of items handled and an increase of 5.5 per cent in the dollar amount of checks collected through the Federal Reserve Bank of Kansas City and branches were recorded in May as compared to April. May collections exceeded those of a year ago, the number of items handled increasing 8.7 per cent and the dollar volume being 2 I. I per cent larger. Check collections through the Federal Reserve Bank of Kansas City and branches: ITEMS May ................. . April.. ............... . Five months..•-· 1935 5, 194,074 5,34 1,879 26,030,498 1934 4,780,073 4,915,071 26,286,343 AMOUNT 1935 1, 853,482,000 809,243,000 3,997,024,000 1934 $ 704,98 I ,ooo 701,455,000 3,602,581,000 Bank Debits Debits by banks to individual accounts, as reported by banks in twenty-nine leading cities of the District, totaled $1,113,670,000 for the five weeks' period ended June 5, o.8 per cent less than in the preceding five weeks ended May I and 10.2 per cent more than for the five weeks ended June 6, 1934. Check payments during the first twenty-two weeks this year amounted to i4,804,251,ooo as compared to $4,332,306,000 for the like period last year. PAYMENTS BY CHECK FIVE WEEKS ENDED June 6, 1934 June 5, 1935 Albuquerque, N. M .._................. 'f, 12,610,000 1, 10,071,000 3,110,000 3,812,000 Atchison, Kans .....·-····················· 24,022,000 24,523,000 Bartlesville, Okla.·--··················· 4,667,000 4,490,000 Casper, Wyo.·--··························· Cheyenne, Wyo ........................... 6,718,000 7,844,000 Colorado Springs, Colo ............... 13,118,000 12,135,000 Denver, Colo ............................... 136,029,000 160,567,000 Enid, Okla................................... 9,672,000 8,997,ooo Fremont, Nebr............................. 2,766,000 2,405,000 Grand Junction, Colo ................. 2,623,000 1,932,000 Guthrie, Okla ............................... 1,676,000 1,398,000 Hutchinson, Kans ....................... 10,302,000 II,974,ooo Independence, Kans ................... 2,489,000 4,384,000 Joplin, Mo ................................... 8,966,000 8,413,000 Kansas City, Kans ..................... u,167,000 14,237,000 Kansas City, Mo ......................... 298,120,000 322,354,000 Lawrence, Kans ........................... 3,361,000 3, 135,000 26,283,000 29,650,000 l.incoln, Nebr.·-··························· Muskogee, Okla ........................... 6,761,000 7,306,000 Oklahoma City, Okla ................. 90,108,000 76, 297,000 Okmulgee, Okla ........................... 2,958,000 3,248,000 Omaha, Nebr............................... 141,822,000 144,691,000 Pittsburg, Kans ........................... 3,180,000 3,596,ooo Pueblo, Colo ................................. 15,692,000 15,209,000 Salina, Kans ................................. 8,030,000 9,738,000 30,872,000 30,978,000 St. Joseph, Mo.·-························· 17,341,000 15,514,000 Topeka, Kans.·-··························· l II,235,000 99,776,000 Tulsa, Okla.·-······························· Wichita, Kans ............................. 36,820,000 43,224,000 Total 29 cities, 5 weeks .......... 'f, l ,113,670,000 '/, 1,010,746,000 Total 29 cities, 22 weeks .......... 4,804,251,000 4,332,306,000 U. S. 270 cities, 5 weeks .......... 36,728,834,000 34,3 12,341,000 U. S. 270 cities, 22 weeks .......... 164,521,639,000 I 55, 179, 295,000 Percent Change 25.2 22.6 2.1 3.9 16.8 8.I 18.0 7.5 15.0 35.8 19·9 16.2 -43. 2 6.6 2 7•5 8.r 7.2 12.8 8.1 18.1 8.9 2.0 13.1 3.2 21.3 - 0.3 l 1.8 11.5 17·4 - 10.2 10.9 7.0 6.o Savings For the fifth consecutive month savings deposits in fortyfive selected banks in leading cities of the District showed an increase over the preceding month during May, being 1.1 per cent larger on June I than on May I and 10.2 per cent larger than on June I, 1934. The number of savings accounts, however, declined o. 5 per cent between May I and June I on which date they were 3.6 per cent larger in number than on June I last year. Savings accounts and savings deposits as reported by the forty-five banks for the three dates of comparison: June 1, 1935·····-······································· May 1, I935·-··········································· June 1, 1934·---······································· Savings Accounts 402,525 404,500 388,702 Savings Deposits $123,501, ?72 122,148,979 l 12,102,658 Business Failures Continuing the record of the past eighteen months, business failures in the District and the United States, dropping sharply from the 1932 peaks, were at low levels in May, defaults being less numerous and the amount of liabilities involved smaller than in any like month since 1920. The May total of national liabilities, amounting to $15,669,627 as against $83,763,521 in May, 1932, has been exceeded by all previous months since May, 1920. THE MONTHLY REV EW Stores Reporting Kansas City........ 4 Denver.................. 4 Oklahoma City.... 3 Tulsa .................... 3 Wichita ................ 3 Other cities .......... 15 3 RETAIL TRADE AT 32 DEPARTME T STORES IN THE TENTH FEDERAL RESERVE DISTRICT STOCKS (RETAIL) ACCOUNTS RECEIVABLE AMOUNTS COLLECTED SALES STOCK TURNOVER May 1935 Year 1935 May 31, 1935 May 1935 May 3 1, 1935 May Year compared to compared to compared to compared to compared to 1935 1934 1935 1934 Apr.30,1935 May 31, 1934 Apr.1935 May 1934 May 1934 Year 1934 Apr. 30, 1935 May 31, 1934 1.6 6.2 -18.3 6.8 -4.0 0.4 .29 .25 1.40 I.IO - 3.0 - 2.7 .28 -o.6 .29 1.41 1.37 2.7 6.3 - 2.3 0.5 4.9 5.9 9.3 - 1.8 - o.8 .36 - 4.8 6.3 0.3 - 6.3 - 7.1 .37 x.73 l.77 5-5 6.1 I.I .36 1•74 r.75 2.4 - 0.4 - 3.0 9.8 .35 - 5.5 7-5 .28 13.0 9.0 .31 I.42 1.36 0.3 3.0 - 4.8 5.2 - 3.0 8.3 .26 .28 1.20 1.23 I.I 3.6 - 6.4 2.5 5.0 8.3 1.5 - 4.9 TotaL __ ··············· 32 - 3.1 3.4 - 1.7 - 3.0 .29 .29 1.40 OTE: Percentage of collections in May on open accounts April 30, all stores reporting 44.4. Business failures in the United States and the Tenth District as reported by Dun and Bradstreet, Incorporated: TENTH DISTRICT Number Liabilities May 1935-............................. 39 $ 393,874 April 1935............................ 40 704,147 May 1934.............................. 32 851,327 Five months 1935-............... 190 1,839,462 Five months 1934................ 213 2,663,092 UNITED STATES Number Liabilities 1,027 1, 15,669,627 1,115 18,063,923 977 22,560,835 5,307 89,8 17,744 127,925,467 5,544 Life Insurance Sales of new paid-for ordinary life insurance in the seven states, all or parts of which comprise the Tenth District, and as reported to the Life Insurance Research Bureau totaled 36,413,000 in May, $125,000 less than in April, and $6,961,000 less than in May, 1934. Sales in Nebraska and New Mexico were slightly larger this year than last but smaller in all other 5tates. For the first five m·o nths this year sales were 'l,187,688,000 as against $200,018,000 in the corresponding period last year. The sales figures by states: 5,086,000 15,396,000 5,148,000 647,000 5,126,000 724,000 April 1935 1, 4,39 2,000 5,001,000 14,949,000 4,587,000 788,000 6,125,000 696,000 May 1934 '/, 4,439,000 5,45 1,000 20,96o,ooo 5,104,000 '/, 36,413,000 500,380,000 '!, 36,538,000 540,280,000 '$ 43,374,000 588,421,000 May 1935 Colorado.---·············-·················· Kansas ......................................... . Missouri ....................................... . Nebraska ..................................... . New Mexico ................................. . Oklahoma..................................... . Wyoming ..................................... . $ 4,286,000 Seven states·--····························· United States.---························· 593,000 5,937,000 890,000 Trade Weather conditions in May being unfavorable to the distribution of seasonal merchandise and shopping restricted by frequent rains, trade at Tenth District wholesale and retail establishments was about unchanged from April to May with the May volume faliing below a year ago. Summer buying was delayed and merchants confined their purchases to nearby requirements. Thirty-two department stores located in cities throughout the District reported the dollar volume of May sales as 0.4 per cent less than in April and 3.1 per cent smaller than in May, 1934. The decrease as compared to the like month last year was the second reported for the year, March sales having shown a loss of 2.5 per cent, and reduced the cumulative gain in s:i]es for the year to June l to 3.4 per cent over Stores Reporting g;~c!~~~~~~~~:: : : : : : : : : : ~ Hardware·--···········-········· 9 Furnitur..,___ __ 4 Drugs ............ - - - - 7 1.32 2.1 0.4 Collections same month last year 42.3. the like period in 1934. Inventories, although low, declined r.7 per cent during the month and stocks as of May 31 were 3 per cent smaller than one year earlier. Collections displayed no notable change for the month but a slight improvement for the year, averaging 44.4 per cent on open accounts and r 5.4 per cent on installment accounts of amounts receivable at the close of the preceding month as compared to 44.2 and 16.3 per cent in April and 42.3 and 15.2 per cent in May, 1934. WHOLESALE: The combined dollar volume of sales of five representative wholesale lines showed an increase of 0.1 per cent for May over April, sales of dry goods, hardware, and furniture increasing and those of groceries and drugs declining. Compared to May, 1934, the combined decrease for the five lines amounted to 5.6 per cent, sales of dry goods slumping 13.5, hardware 13.7, and drugs o.8 per cent, whereas sales of furniture and groceries were up 15.9 and o.6 per cent, respectively. Cumulative comparisons for the year to June 1 disclose losses as compared to the like period in 1934 for all lines but groceries, up r.6 per cent, sales of dry goods being down 17.0, hardware 7.6, drugs r.9, furniture o.r, and the five lines 5.4 per cent. Inventory changes between April 30 and May 31 were minor with stocks of groceries and drugs enlarged and those of dry goods, hardware, and furniture reduced. Since May 31, 1934, wholesalers of dry goods, groceries, and drugs have increased their stocks 6.3, 29.7, and o.6 per cent, respectively, and hardware and furniture distributors cut theirs 12.5 and 9.5 per cent. Collections on the whole are somewhat better than one month or one year ago. Implement dealers report sales good and collections fair. Lumber RETAIL: Sales of lumber in board feet at 156 retail yards in the Tenth District increased 14.5 per cent over sales in April and were larger than in May last year by 27.1 per cent. Sales of all materials in dollars were also larger than in either April this year or May, 1934. Inventory changes were slight, lumber stocks being o.6 per cent heavier on May 31 than one month earlier but 3.5 per cent smaller than one year earlier. Collections improved further during May, averaging 43.8 per cent of amounts outstanding at the close of April as compared to collections ratios for April this year and May last year of 40.0 and 35.1 per cent. WHOLESALE TRADE IN THE TE TH FEDERAL RESERVE DISTRICT AMOUNTS COLLECTED OUTSTANDINGS SALES May 1935 May 31, 1935 May 1935 compared to compared to compared to May 1934 Apr. 1935 May 1934 Apr. 30, 1935 May 31, 1934 Apr. 1935 -11.4 - 4.1 2.2 - 0.1 -11.5 - 13.5 8.4 o.6 o.8 2.9 - 3.0 4.7 10.2 - 8.8 - 9.8 - 0.5 - 13.7 1.7 8.6 JI.2 15·9 1.0 - 9.1 5.7 -o.8 2.5 I.I -4.4 - 3.3 J.5 STOCKS May 31, 1935 compared to Apr. 30, 1935 May 31, 1934 6.3 - 1.3 2 9•7 0.5 -12.5 - 4.1 0.4 - 9.5 o.6 - 1.3 THE MONTHLY REVIEW 4 A summary of the reports covering 156 retail yards in percentages of increase or decrease: Sales of lumber, board feet ................................ Sales of all materials, dollars...................·-······ Stocks of lumber, board fee.__ _ _ _ __ May 1935 compared to April 1935 May 1934 14.5 27.1 10.2 32.0 Outstandings, end of month .....................·-······ o.6 - 3.5 6.5 7.2 National lumber production for the year to June 1, as reflected by reports of hardwood and softwood mills to the National Lumber Manufacturers Association, is about 2 per cent below a year ago, whereas shipments are 24 per cent and orders booked 22 per cent greater. Shipments ran 17 per cent and orders booked 24 per cent above production. Building Seventeen c1t1es of the District reported their fifth consecutive increase in total building expenditures in May, both as compared to the preceding month this year and to the corresponding month last year. The aggregate value of permits was $2,222,123, the highest since October, 1931, and representing an increase of 29.5 per cent over May, 1934. BUILDING PERMITS IN TENTH DISTRICT CITIES 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, Col Salina, Kan Shawnee, Okla·-···- ···········- ····-St. Joseph, Mo Topeka, Kans.·---······················· Tulsa,Okl Wichita, Kans .......................... _. Total 17 cities, May·--·······-······ Five months·----·-·· PERMITS 1935 1934 60 59 40 31 31 30 314 334 17 17 36 31 zo6 276 113 144 122 72 137 107 81 47 6 13 IO 15 22 27 56 54 104 89 193 74 1,584 6,439 1,384 5,017 ESTIMATED COST 1935 1934 $ 57,449 $ 20,991 23,543 55,966 17,812 9,613 273,94 1 1 51,579 6,450 9,950 20,345 19,115 246,6oo 1,052,600 58,082 52,77 1 156,985 56,190 121,864 71,505 789,354 7,584 2,175 7, 175 7 1,390 20,385 125,016 1 34,249 152,916 38,383 7,3 25 15,375 i3,475 $2,222,123 7,285,947 69,905 1 1 ,7 1 5,935 5,326,336 Flour Milling As in the preceding month, a consistent volume of small orders for immediate shipment enabled Tenth District flour mills to maintain operations at seasonable schedules in May. Operating at 58.3 per cent of full-time capacity, production totaled 1,886,473 barrels for the month, or 26,486 barrels less than in April and 50,789 barrels less than in May, 1934. During the eleven months of the crop year, now drawing to a close, these mills ground 21,074,943 barrels of flour as compared to 19,580,566 barrels in the corresponding period of the 1933-1934 wheat year. Buyers evidenced more interest in new crop flour but opening bids were consistently under the market. Declines in the wheat market as the month advanced brought in a number of round lot and large order sales for deferred delivery. Although code restrictions have been removed, millers are continuing the policy of 90 day bookings and carrying charges thereafter. Flour prices did not follow the full decline in wheat due to lower millfeed prices, mark-downs averaging about 30 cents per barrel. First clears and low grade flour were reported hard to move. Shipping directions were active. Flour production m May, with comparisons, as estimated from the weekly reports of southwestern mills to the Northwestern Miller: Atchison....................................... . Kansas City_ _ __ Omaha ................... · .................... . Salina........................................... . Wichita..._..................................... Outside......................................... . May 1935 Barrels 128,922 497,088 113,628 154,93° April 1935 Barrels . I 14,161 550,092 107,434 147,565 155,815 I 54,171 839,536 836,090 May 1934 Barrels 129,220 522,076 III,45'8 146,461 166,997 861,050 TotaL_......................................... 1,886,473 1,912,959 1,937,262 *United States·--························· 4,957,434 4,981,426 5,16o,516 *Represents about 60 per cent of the total output in the United States. Improved pastures and crop prospects and a shortage of hogs were contributing factors in a weakening demand for millfeeds, and prices broke sharply, closing $3.50 to $4.00 per ton net lower. Production was not heavy but supplies were more than ample for the light demand. Grain Marketing Light receipts and sharp declines in prices of all grains but kafir were the distinguishing features of the May grain trade at the five principal markets of the Tenth District. Marketings of wheat and oats were the second and of corn and rye the third smallest for the month on records, commencing with 19'20, and those of barley and kafir established a new low for May. Wheat, oats, and rye were in about half the normal supply and receipts of corn fell 31 per cent short of the ten-year average. Due largely to seed requirements, receipts of kafi.r at the five markets were somewhat larger in May than in April but the movement of all other classes of grain was smaller. May receipts of six classes of grain at the five markets: Hutchinson ...... Kansas City·--· Omaha ............. . St. Joseph·---··· Wichita·--········· May I935·-······· April 1935........ May 19J+-······· 5 Mos. 1935-···· 5 Mos. 1934--··· Wheat Corn Bushels Bushels 1,250 684,450 1,635,200 1,882,500 242,200 77 1 ,9 1 4 76,800 298,500 618,000 24,700 3,786,364 3,810,178 3,522,300 14,351,143 Oats Bushels Rye Bushels 8,000 110,000 328,000 18,600 2,449,150 456,600 3,166,330 504,000 1,285,150 770,000 12,285,46o 2,755,100 20,961,650 12,705,6oo 2,589,500 Barley Bushels Kafir Bushels 7,800 49,000 4,5 00 1,300 14,400 8,000 14,050 30,400 83,800 218,900 237,45° 24,000 30,000 7 1 ,35° 62,600 46,100 181,200 287,000 735,700 Declines of 16 cents per bushel for wheat and 13 cents for oats during May carried prices for these cereals to the lowest levels of the crop year, with closing quotations on wheat 6 cents and oats 5 cents per bushel lower than on May 31 last year. Corn was off 6 cents, rye 12 cents, and barley 16 cents per bushel for the month but kafi.r closed 4 cents per hundredweight higher. Corn and kafir closed well above a year ago. Cash grain prices at Kansas City as of the dates indicated: No. No. No. No. No. No. I '2 2 2 2 '2 June 15 May 31 Aj ril 30 May 31 May 31 May 31 1 933 1932 1935 1935 1935 1934 ,, .69 dark wheat, bu .... . ,, .82½ $ .89 $ .52½ t,1.05 $ ·95 mixed corn, bu .... . .40½ .30½ .83½ .85½ .92¼ .55 white oats, bu ....... .23 .25 .39½ .38 .51 .43 .42 rye, bu ............... -.-48 .53 .6o .72 .72 .30½ barley, bu,.--····.33 .56 .55 •7 1 .55 .82 kafir, cwt...........- .. 1.78 J.99 1.95 I.OJ .55 The demand for hay slackened as pastures improved and prices weakened in May. Alfalfa prices broke $6 to $7 per ton the second week of June to a new crop base as first cuttings were being harvested. 5 THE MONTHLY REVIEW Agriculture In contrast to a year ago, when drouth and high temperatures prevailed over the District, May and the first three weeks of June were unusually cold and wet. Frequent and excessive rains restored soil moisture, improved meadows and pastures and crop prospects but delayed the planting of corn, sorghums and cotton, interfered with haying, and resulted in consider~ able flood damage. The general outlook for crops is the best in several years, except corn, planting of which was only about half completed by June 1 with the ultimate yield dependent on favorable weather the next three months and a late frost. Warm, clear days are now necessary for the completion of seeding operations, haying, cultivation of growing crops, and the ripening and harvesting of spring grains. The irrigated sections are assured of an adequate supply of water. SMALL GRAINS: Winter wheat prospects improved during May in all states of the District but Missouri and Kansas, Missouri prospects declining and Kansas estimates being unchanged, flood waters and lodging accounting for a minor loss of acreage in those states. The June 1 estimates by the United States Department of Agriculture of production for the seven states of the District were raised 6.3 per cent above those of May 1, with production forecast at 164,954,000 bushels, 6,867,000 bushels more than in 1934 and 28,679,000 bushels ~ore than in 1933. The crop, although the best in three years, 1s 24 per cent below that of 1932 and 49.3 per cent below the five-year (1928-1932) average. The rains are now having an adverse effect on wheat, preventing proper pollination, promoting the rapid spread of rust infestation and interfering with harvest. Harvest, which is two to three weeks late, commenced in the southern part of the District the third week of June. Binders are expected to replace combines in many fields as much wheat has fallen and the ground is soft. Rains came too late to benefit wheat in the western third of the wheat belt where abandonment to May 1 was the largest of record, but a few fields believed beyond recovery may make fair yields. Reports indicate a substantial acreage in the drier areas seeded to spring wheat. The production of winter wheat in the United States is forecast at 441,494,000 bushels, compared with 431,637,000 bushels indicated May 1, 405,034,000 bushels in 1934, and 618,186,000 as the 1928-1932 average. Spring wheat seedings suggest a crop around 230,000,000 bushels, or a total wheat crop for the nation of about 670,000,000 bushels compared with 496,000,000 bushels last season and a ten-year average of 828,000,000 bushels. Production of winter wheat in the seven states of this District and the United States, as estimated by the United States Department of Agriculture, in bushels, ooo omitted: Indicated Indicated May 1, June 1, 1935 1935 Colo ............. 1,080 1,148 Kans ........... 67, 137 67, 137 Mo ............... 21,505 24,310 40,178 32,872 Nebr.·-··-····· N.M ........... 540 405 Okla............. 29,097 33,946 Wyo ........... 500 346 7 States.---· u. s............. 164,954 441,494 I 55,247 431,637 Final 1934 Final 1933 Final Average 1932 1928-1932 3,76o 79,663 21,266 15,008 561 37,348 481 2,412 57,452 16,950 25,894 I,210 31,549 808 4,626 120,025 I 5,658 47,592 1,554 55, 1 45 I 58,087 405,034 136,275 216,986 478,291 325,059 350,792 25,938 1 ,593 : 13,051 177,0 54 20,217 54,169 3,712 1,711 618,186 Rye in the eastern third of the District is good and, as much of that sown for pasture last fall is being allowed to mature the acreage is large. In western areas the abandonment of rye and barley has been heavy. Oats prospects are the best in several years and average OJ better yields are anticipated. CORN: The backwardness of the planting season is placing this District's 1935 corn crop in a precarious position. Less than half of the usual acreage was planted by June 1, with a large percentage of the acreage still to be planted or converted to sorghums or other crops June 20. If weather conditions are favorable and frost dates late, a good crop is yet possible if planted before July 1. Early planted fields are weedy as cultivation has been difficult. A large amount of replanting has been necessary. HAY: Pastures and tame and wild hay meadows have staged an unusual recovery since May 1. The first cutting of alfalfa has been delayed by frequent rains, with much of it damaged, and there is enough soil moisture to insure a large second cutting. The stripping season for blue grass seed is at hand with harvest a week to ten days later than normal. POTATOES: Floods caused comparatively greater dapiage to potatoes than any other crop, producers in the Kaw and Arkansas River Valleys suffering heavy losses. Approximately 4,000 acres were destroyed in the Kaw Valley of Kansas, or a third of the commercial crop, the estimated yield now being placed at 1,094,000 bushels, 379,000 bushels above the crop of 1934 and 1,024,000 bushels below the 1929-1933 average. The Orrick District of Missouri suffered similarly. The Oklahoma loss was placed at 30 to 35 per cent, prospective shipments now estimated at 1,200 to 1,300 cars compared to earlier estimates of 1,750 cars. FRUIT: Fruit prospects are generally good. Colorado reported some frost damage in Delta county but the peach crop is expected to be only slightly less than the record crop of 1934, apples and pears promise near normal yields, and cherries in the principal producing areas are good. On the whole apple prospects are excellent, the set being exceptionally heavy and development good. Peaches are also making good growth and the outlook is favorable. Early varieties of apples in the Ozark section will be ready for harvest about July 1. Strawberry picking is about over; the crop was short but prices held up well to the best levels in several seasons. MISCELLANEOUS CROPS: Sugar beet growers report a good stand of beets but needing warm weather for best development. Planting is virtually completed but the acreage is somewhat smaller than last year. Weeding and thinning is progressing. Cotton planting has made a fair to good advance although a month late and some planting remaining. Plants are making good growth generally. A large acreage of grain sorghums is being planted but suitable seed is scarce. PAYMENTS THROUGH THE A. A. A.: Rental and benefit payments to signers of cotton, wheat, corn-hog, sugar, and tobacco adjustment contracts in the District aggregated $14,042,899 in April. This was the largest amount distributed in any one month since last October, exceeding the March total by '$4,826,577. Payments on corn-hog adjustment contracts accounted for '$II,706,313 and on sugar contracts forf,1,774,974 of the total. Cooperators in Nebraska received f,5,688,oII, Kansas '$3,061,653, Missouri $2,250,005, Colorado $1,526,194, Oklahoma $1,196,747, Wyoming $230,597, and New Mexico '$89,692. Live Stock Receipts of all classes of live stock at the-six principal markets of the Tenth District were lighter in May than in April and, with the exception of calves, smaller than a year ago, muddy roads being partially responsible for the decrease in supplies. The outstanding developments for the month were all-time low receipts of hogs, with prices advancing '$1 to '$1.20 per hundredweight to a top of '$9.80 at Kansas City, the highest price since October, 1930, and stocker and feeder cattle attain- 6 THF. MONTHLY REVJEW ing an average cost above $8, the highest since 1931, whereas is but little smaller than a year ago and the pastures are fully choice beeves broke '1,1 or more, thereby narrowing the spread stocked. Pasture prospects are excellent, water is abundant, between finished and unfinished cattle. Improved pastures, and the cattle are making rapid gains and early shipments to which stimulated demand for stock cattle, and consumer re- market are anticipateci. sistance to higher meat prices were responsible for the con- ,..: ·woOL: Shearing has been delayed by cold, wet weather tradictory price trends. The May run of calves was the largest and fleeces are reported somewhat lighter than usual. Wool in sixteen years of record, whereas that of cattle was,~ 1932 prices advanced and trading was active in May. Estimated excepted, the smallest, being 16 per cent below the ten-year purchases of the 1935 wool clip approximated 30,000,000 average. The Kansas City top for cattle was '1,13 compared pounds to June I at prices ranging from 15 to 20 cents a pound to $14.25 in April and $8.75 last May. The May, 1934, top for as compared to 20 to 23,½' cents la.st year. The top price reported to date for Wyoming wool is 25 cents a pound, 8 hogs was $3.45 per hundredweight. Supplies of sheep and lambs were the smallest for the month cents below last year's best price. Mill consump tion of wool since 1930 but 4 per cent in excess of the ten-year average. is running ahead of a year ago. There was a heavy seasonal run of native spring lambs but the Meat;:·Packing supply of western springers declined. Values advanced on all Packers purchased fewer cattle at six Tenth District markets classes but fat ewes, reaching their peak in mid-month and selling off at the close. Fed shorn lambs closed mostly 75 in May than in any like month in sixteen years of record and cents per hundredweight higher and native springs, which less hogs, direct shipments included, than in any month of reached a top of $9.65 compared to f,11.75 last year, closed record. Cattle purchases fell 29.4 per cent below a year ago mostly 25 cents higher. Sheep were the only class of live and 18.4 per cent below the ten-year average for May, whereas stock to sell below a year ago. Receipts of horses and mules swine numbers declined 68 .5 per cent as compared to May, 1934, and 64.6 per cent as compared to the average. About totaled 9,063 head in May, 15,628 head in April, and 9,598 the usual number of calves and sheep and lambs were slaughtered head in May, 1934. The outgo of stocker and feeder cattle from four markets during the month, calf slaughter declining 22.9 per cent as was considerably heavier than a year ago or normally at this compared to May, 1934, while sheep numbers increased 10.7 season, calves showing a comparatively larger increase in vol- per cent. Federally inspected slaughter figu res for the United States, ume than cattle. The countryward movement of hogs and as reported by the Department of Agriculture, showed insheep, however, was only half as large as in May, 1934, and creases of 7.6 and 6.8 per cent, respectively, in the slaughter a third of normal. of cattle and sheep for May over April and fr actional declines RANGES AND PASTURES: Staging one of the most in the slaughter of calves and hogs. Sheep were the only rapid recoveries for a similar period of record, ranges and class to show an increase over a year ago, cattle numbers depastures although late have improved greatly the past month clining 14.9 per cent, calves 15.4 per cent, and hogs 48 . 5 per and live stock throughout the District are making rapid gains. cent, the latter decrease comparing with the estimated reducThe condition of ranges in Oklahoma improved 9, Colorado 11, tion in the fall pig crop. The slaughter of hogs was the smallest western Nebraska 13, New Mexico 22, Wyoming 23, and for any May in forty years of record and for any month since western Kansas 32 points between May I and June I and, September, 1920, March, 1935, excluded. with the exception of Colorado and western Kansas, averages Official figures on inspected slaughter: only slightly below normal. Conditions in all states are better Sheep Hogs Calves Cattle than a year ago at this time. Hay prospects are excellent. May 1935.................. 735,463 1,584,125 2,172,109 508,030 Winter and spring losses of lambs and calves in the range April 1935 ................ 683,265 1,482,775 2,177,436 511 ,493 600,228 1,244,491 4,217,624 areas, although generally not heavy, were larger than last year May 1934.................. 864,075 6,922,512 2 2 II,963,730 ,393,369 due to the low condition of breeding stock, the greater losses Five months 1935 .... 3,745,5 9 6,216,603 19,49 2,400 2,568,288 Five months 1934.... 3,948,493 occurring in the severer drouth areas. A below average crop of both lambs and calves is in prospect. Cold Storage H oldings The spring (January I to May 31) movement of cattle into On June I United States cold storage holdings of beef, lamb the Blue Stem and Osage pastures of Kansas and Oklahoma and mutton, and poultry were 38.3, 13.8 and 10.7 per cent, is estimated by the United States Division of Crop and Live respectively, above the five-year average for the season, whereas Stock Estimates at 266,000 head compared with 309,000 in stocks of pork were 30.1, lard 28.3, miscellaneous meats 12.2, 1934, 315,000 in 1933, and a five-year (1928-1932) average of eggs (cased) 15.6, eggs (frozen) 13.1, creamery butter 6.5, 356,000 head. Owing to the large number of cattle wintered and all varieties of cheese combined 6.9 per cent below the over, however, the total number of cattle in the two sections average. Inventories of beef, lamb and mutton, poultry Kansas City.............. Omaha ........................ St. Joseph .................. Denver........................ Oklahoma City.......... Wichita ...................... Cattle 107,677 81,649 25,796 29,4 23 35,182 23,495 MAY MOVEMENT OF LIVE STOCK IN THE TENTH DISTRICT RECEIPTS STOCKERS AND FEEDERS Calves Hogs Sheep Sheep Hogs Cattle Calves 26,848 *n3,819 2,126 184,422 6.678 10,827 46,349 12,922 8,458 428 · 140,235 93,423 12,144 2,833 1,802 8,323 262 1,197 52;493 98,794 3,285 29,9 24 2,096 5,422 186,853 II,151 3,156 697 25,182 5,484 17,345 17,679 4,95 2 24,347 303,222 332,520 59,487 651,996 May 1935·--··············· April 1935 .................. 38 5,4II 339,413 67,477 77 1,583 966,416 706,633 57,7o7 393,743 May I 934·-··-············· Five months 1935·--· I,633,077 320,323 1,928,108 2,985,574 Five months 1934·-··· 1,807,008 266,095 4,019,228 3,158,747 *Includes 69,756 hogs shipped direct to packers' yards. 7 2,9 29 78,447 44,683 352, 21 7 256,663 17,078 I 8,021 6,784 63,346 42,078 4,448 6,747 8,799 23,498 35,8 17 3o,695 35, 203 219,403 258,521 5o,533 PURCHA SED FOR SLAUCHTF.R Sheep Hogs Calves Cattle 17,113 *104,146 137,346 47,768 117,022 5,625 63, 174 54,003 83,818 20,910 48,544 7, 274 27,604 2,191 15,124 17,764 22,176 l'2/246 19,910 3,897 16,616 23,151 9,832 4/243 167,547 170,260 237,486 837,488 1,076,297 272,420 401,187 4o,343 48,879 455,863 3 15,577 362,322 865,574 52,35 2 240,690 1,587,501 1,687,035 219,061 3,438,604 1,795,111 THE 1\1oNTHLY miscellaneous meats, and butter were larger than a year ago, but stocks of pork, lard, eggs, and cheese were smaller. Holdings of eggs, butter, and cheese increased seasonally during May, the in-movement of eggs and cheese being lighter and that of butter heavier than a year ago or normally. Contrary to the usual custom, storage holdings of miscellaneous meats declined 13.7 per cent and of lard 9.4 per cent during the month. Seasonal withdrawals of all other classes of meat were substantially larger than a year ago, or usual for the month. United States cold storage holdings as reported by the Bureau of Agricultural Economics: *June 1 May 1 June I June I 1935 1934 5-Yr.Av. 1935 77,559 42,546 45,948 Beef, lbs.·--··········································· 63,563 Pork, lbs............................................... 505,016 564,881 641,568 722,180 Lamb and mutton, lbs....................... 2,557 2,247 3,031 1,363 Poultry, lbs........................................... 48,311 61,815 39,790 43,654 **Turkeys, lbs......................................... 14,268 7,644 16, 143 9,493 65,206 Miscellaneous meats, Jl,s .... --············· 57,248 66, 298 52,599 Lard, lbs............................................... 91,708 101,224 182,240 127,974 Eegs, cases............................................ 6,366 3,901 7,819 7,665 Eggs, frozen (case equivalent).......... 2,421 1,695 2,684 2,787 Butter, creamery, lbs ..-....................... 33,086 5,676 27,161 35,4°3 Cheese, all varieties, lbs..................... 56,723 54,459 71,469 6o,933 *Subject to revision. "'*Included in Poultry. (ooo omitted) . NOTE: Meats held for the account of the Federal Emergency Relief Administration arc not included in the above. Petroleum The production of crude oil in the five oil producing states of this District during May, as estimated from the weekly reports of the American Petroleum Institute, totaled 23,347,000 barrels, representing a daily average of 753 1 100 barrels. The Bureau of Mines reported production for the five states in April this year at 23,058,000 barrels and in May last year at 23,323,000 barrels. Production again exceeded allowables of 740,100 barrels per d ay, effective May I. Output for the first five months of 1935 is estimated at I 12,443,000 barrels as against 107,221,000 barrels during the like period last year. The gross production estimates by states are shown in the following table: *May 1935 Barrels 15,933,000 4,657,000 1,046,000 133,000 1,578,000 April 1935 Barrels 15,653 ,000 4,550,000 1,066,000 150,000 1,639,000 May 1934 Barrels 16,474,000 4,173,ooo 1,152,000 98,000 1,426,000 Total five states.......................... 23,347,000 Total United States.................... 80,559,000 *Estimated, American Petroleum Institute. 23,058,000 78,427,000 23,323,coo 79,870,000 Oklahoma·--································· Kans:•c:; .......................................... Wyoming..................................... . Colorado.--··································· New Me:<ico·---··························· Mid-continent crude oil prices remained unchanged at schedules ranging from 76 cents to $1.08 per barrel posted in September, 1933. Gasoline prices a~vanced as domestic consumption increased seasonally to new all-time peaks. Lubricants also strengthened but kerosene and fuel oils sagged. Refinery operations, as reflected by the daily average runs of crude oil to mid-continent refinery stills, advanced 4 per cent between May 1 and June 1 and on the latter date were 5 per cent larger than on June 1, I 934. Field operations continue to reflect improvement in the industry, drilling activity increasing generally with new discoveries in iVyoming, Nev,r Mexico, Oklahoma, and western Kan"aS reported the past mon th. There were more wells completed in the District during May than in any month since October, 1930, with a larger number of rigs up and wells drilling at the close of the month than on any like date since 1930. RE,rrnw 7 Following is the summary of May field operations: Barrels Daily Wells Completed New Production Oklahoma._ ............... 235 57,752 Kansas ...................... 125 63,650 Wyoming .................. 360 5 Colorado.................... 2 3,408 61,021 23 New Mexico..·--······· May 19J5·-··············· April 1935 ................ May 1934.................. 186,191 181,007 107,53° 39° 280 216 Dry Wells 77 Gas Wells 11 2 35 0 0 0 2 0 5 Ri gs-Wells Drilling 537 235 76 JI 120 II9 13 999 65 50 IO 1,045 922 15 Bituminous Coal Weekly estimates of the United States Bureau of Mines indicate a production of 1,169,000 tons of bituminous coal by mines in the six coal producing states of the District during May. Output exceeded the April tonnage by 12.4 per cent, one of the largest increases ever reported, was 42 per cent above a year ago, and larger than in the like month of any year since 1931. All states shared in the gains over April this year and May fast year. Soft coal production in May, as estimated from the weekly reports of the United States Bureau of Mines, with comparisons: *May 1935 Tons 292,000 355,000 99,ooo 41,000 382,000 Colorado... _................................... Kansas and Missouri .................. New Mexico..·-·····--······················ Oklahoma..................................... . Wyoming..................................... . *April 1935 Tons 279,000 281,000 95,000 40,000 345,000 May 1934 Tons 248,000 225,000 78,000 22,000 250,000 Total six states............................ 1,169,000 1,040,000 823,000 Total United States.................... 26,790,000 21,9::0,000 38,655,000 *Estimated from the weekly reports of the United States Bureau of Mines. Ce1nent In May cement mills of the District produced 940,000 barrels, shipped 725,000 barrels, and had month-end stocks of 2,092.,000 barrels of finished Portland cement. Production, which was the heaviest for the month in four years, increased 69.4 per cent as compared to April and 21.8 per cent as compared to May, 1934. For the first time since January production exceeded shipments and stocks increased. Production, shipments, and stocks of Portland cement as estimated by the Bureau of Mines, in thousands of barrels: TENTH DISTRICT Production Shipments May 1935...... 940 725 April 1935.... 555 793 May 1934...... 772 965 5 Mos. 1935.. 2,654 2,954 5 Mos. 1934.. 2,924 3,236 UNITED STATES Stocks Production Shipments 8,::22 7,428 2,09::!. 6,136 6,198 1,876 8,554 8,784 1,739 Stocks 22,014 21,219 21,301 Zinc and Lead A strike of mine, mill, and smelter workers, commencing May 9, reduced production and shipments of zinc ore and lead ore at mines in Missouri, Kansas, and Oklahoma during the four weeks' period ended June 1 to an all-time low. Shipments of zinc ore dropped to 7,521 tons as against 29,421 tons in the preceding four weeks' period and 27,987 tons in the corresponding period in 1934. Lead ore shipments amounted to only 503 tons, 2,374 tons less than in the four weeks ended May 4 and 3,091 tons less than in the like period last year. Operations and trading were resumed the second week of June. Ore prices were unchanged for the month, zinc ore closing at $26 and lead ore at $36 per ton, Jr and $6 per ton, respectively, lower than a year ago. Buyers of both zinc and lead reported no purchases the closing weeks of May. Lead ore advanced '$2 per ton the forepart of June. 8 THE MONTHLY REVIEW Business Conditions in the United States By the Federal Reserve Board f-Ell CCHT ,t~-0 -IS_T_ F:IA _ L_ f'_R_OO _U_CT _ IO _ N_----r-_.. =,• 140 ~ - . - - - - ~o 13~ ;------1----;i----t---+- - - + - - + - - - l 130 120 ld"--'-'--1--------,,-------4--+--+--l-----.j 120 11 0 l----+l-------,f-------4---+--l-------+---l 110 100 ' --~-----,'-------4---+---,,-l-------+---l 100 00 i----1----..-1'-:---t---+~ l - + ---=---l 90 -l!o 70 .....,-+ Y..- + - -+-----4 60 60 - ~ -~ - ~ -~-~:so GO 1929 1~;;0 1931 19n 1933 !ll3~ 1s:lll Index of industrial production, adjusted for seasonal variation. (1923-1925 average= 100.) Latest figure: May, 8 5. PCIICClfT 120 rACTORY E:,IPLOYMC:N T 11 0 h i 100 110 100 I' \ 90 '\ - 6? TO A '\ r,o I' IV 90 - 90 70 \.,. .. I 60 50 50 19!0 1929 !)JI 19;)2 1933 1934 193CI Index of factory employment, adjusted for seasonal variation. (1923-1925 average=100.) Latest figure: May, 81.3. t,tll.LJO NJ"JC"DOU Aq 3 GOO _ _ _ _ _ _ ..,llll()NS(f'f'VJl.l l lt3 - -·co"";::srR·ucTION CONTRACTS AWARCED___ coo Three month moving averages of F. W. Dodge data for 37 eastern states, adjusted for seasonal variation. Latest fi gure based on data for March and April and estimate for May: total, 102.5; residential, 35.9; all other, 66.6. rlll CENT PEII C.[Hf 120 120 WHOLESALE PRICES 11 0 110 100 100 90 90 I!() 80 ' -r 70 70 'r"' 60 l'O ~ &O '" 40 40 30 30 19::9 19<.l ~ 3,\ 19J2 lS33 1934 1935 Indexes of the U nited States Bureau of Labor Statistics. (1 926=100.) By months, 1929 to 1931; by weeks, 1932 to date. Latest figure, June I 5: farm products, 79.9; foods, 83.4; other commodities, 77.9. There was a further slight decline in industrial production in May and factory employment and payrolls also showed a decrease. Activity in residential construction continued to be above the level of a year ago. PRODUCTION AND EMPLOYMENT: Volume of industrial production, as measured by the Board's seasonally adjusted index, declined from 86 per cent of the 1923-25 average in April to 85 per cent in May, which was the fourth consecutive month of gradual decline from the recent high level of 90 in January. At steel mills output declined somewhat in May and the first three weeks of June, as is usual at this season. In the automobile industry, where output this spring has been at a level substantially higher than in other recent years, production showed a marked decline in May, reflecting in part the effects of a strike. At cotton mills there was little change in activity, while at woolen mills production increased further, contrary to seasonal tendency. Production of shoes declined seasonally. Output of coal which has fluctuated widely in recent months, reflecting partly developments in the labor situation, showed a marked increase during May and the early part of June. Factory employment and payrolls declined between the middle of April and the middle of May. Decreases in employment were reported for the automobile, radio, lumber, clothing, cotton, silk, and shoe industries, while at woolen mills employment increased and in many other lines little change was reported. Value of construction contracts awarded, as reported by the F. W. Dodge Corporation, was about the same in May as in April. Residential work continued in excess of a year ago, while the volume of contracts for public projects was smaller than in the corresponding month of 1934. Department of Agriculture estimates based on June 1 report5 indicate that conditions for wheat, oats, barley, rye, hay, and pastures were at the ten-year average for 1923-32, in contrast with conditions a year ago, which were unusually poor as a consequence of a prolonged drought. The winter wheat crop this year is estimated to be somewhat larger than last year and, with a considerable increase indicated for spring wheat, present conditions, according to the Department of Agriculture, suggest a total crop of about 670,000,000 bushels as compared with 496,000,000 bushels last season and a ten-year average of 828,000,000 bushels. Domestic stocks of wheat have been materiallv reduced this season. DISTRIBUTION: Total volume -of freight carloadings increased in May by about the usual seasonal amount. Coal shipments showed a marked increase, while loadings of miscellaneous freight declined. Department store sales, as measured by the Board's seasonally adjusted index, increased from 73 per cent of the 1923-25 average in April to 76 per cent in May and were at approximately the same level as a year ago. COMMODITY PRICES: The general level of wholesale prices, which was 80.3 per cent of the 1926 average at the end of April and also in the week ending May 25, had declined to 79.8 per cent by the week ending June I 5, according to the index of the Bureau of Labor Statistics. Grain prices decreased considerably during M ay and the first half of June. Cotton prices, after a sharp decline at the end of May and a subsequent increase, also were lower in the middle of June than at the beginning of May. Prices of commodities other than farm products and foods as a group advanced slightly during this period. BANK CREDIT: During the five weeks ending June 19 reserve balances of member banks increased by $175,000,000 as a result of gold imports, offset in part by an increase in Treasury cash and deposits with the reserve banks. Excess reserves of member banks on June 12 were above $2,500,000,000 for the first time, but declined somewhat in the following week. At reporting member banks in leading cities there was an increase of $540,000,000 in net demand deposits in the four weeks ending June 12, due in part to gold imports. Time deposits declined by 'i,150,000,000 of which '/>70,000,000 represented a decline at New York City banks consequent upon a ruling of the New York Clearing House in May prohibiting the payment of interest on new time deposits maturing in less than six months. Total loans and investments of reporting banks showed no important changes. Short-term, open-market interest rates continued at low levels in May and the first half of June.
@FedFRASER