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THE MONTHLY REVIEW Of Agricultural, Industrial, Trade and Financial Conditions in the Tenth Federal Reserve Districr FEDERAL Vol. 21 RESERVE BAN ;_ KANSAS CITY, H EAVY general rain~ during May throughout the central portion of the Tenth District from central Nebraska and northeastern Colorado southward greatly improved pastures and prospects for late crops in that area and provided moisture to mature small grains, while the absence of rain during the first part of June was favorable for wheat harvesting operations, which had commenced in Kansas early in the month. In Wyoming and in northwestern Nebraska, early June rains temporarily relieved a drought situation which had developed during May, but by the third week in r l June the need 1or additional moisture was genera throughout the District, particularly for corn and other field crops, the planting and cultivation of which had made good progress during May and the forepart of June after being delayed by dry soil conditions. Agricultural commodity prices declined two points between mid-April and mid-May to 103 per cent of the pre-war average, compared to 108 per cent on May 15, 1935, with the ratio of prices received by farmers to prices P aid declining two points to 85 per cent of the average, the same as one year earlier. Retail and wholesale trade improved during May, with the dollar volume of sales at thirty reporting department stores 14.1 per cent and of five representative wholesale lines combined 10.6 per cent greater than in May, 1935. Lumber sales and building operations were below the level of April but continued well above a year ago. The volume of payments by check was fractionally larger than in April and 11. 5 per cent larger than in May of last year. Business failures remained at a low level. The production of flour and shipments of lead ore increased during May, while the production of crude petroleum and . . 1d d f h d h. f . b1tummous coa ecrease urt er an s 1pments o zmc ore declined with a dull demand for zinc concentrates. Shipments of zinc and lead and the output of crude oil were larger than in May, 1935, but the production of flour and coal declined compared to a year ago. Packers' purchases of live stock indicated a further general decline in meat packing operations in May, with only cattle and hog slaughter larger than in May of last year. . f . d 1· k 11 d 1· d f h M ar k etmgs o gram an 1ve stoc genera y ec me urt er in May, while receipts of grain were heavier and of live stock lighter than in May, 1935. Receipts generally were below normal, particularly of wheat and hogs. Grain and live stock prices declined during the month, although hog and lamb prices were above the levels of May, 1935. Member Bank Operations Loans and discounts of fifty-two reporting member banks in the Tenth District increased slightly further between May 6 and June IO to a level 14.2 per cent above that of June 12, 1935. These increases reflected principally an increase in "all other" loans, as the increase in loans on securities during Thi• Copy Released For Publication Mo., OF JuLY KANSAS CITY 1, 1936 No. 7 BUSI ESS IN THE TENTH FEDERAL RESERVE DISTRICT Percentages of Increase, or Decrease (-), for May 1936 over April 1936 and May 1935 and for the first five months of 1936 over the like period in 1935. May 193 6 5 Months 1936 compared to compared to Banking Apr. 1936 May 1935 5 Months 1935 1 1.5 Payments by check, 2 9 cities ..... ··········· o.7 n.8 Federal Reserve Bank check collections - 2.6 - 2.1 6.3 Business failures, number.... _ _ _ _ - 14.3 -23.1 6.3 Business failures, liabilities...................... 7.5 -38.3 52.2 Loans, 52 member bank.,___ _ _ _ 1.9 14.2 Invest ments, 52 member banks.............. 6.3 3.7 Adjusted dem. deps., 52 member banks 5I 4 1 T.1me deposits, 45 selected banks._......... · _ 0 •. 8 0.3 Savings deposits, 4 5 selected banks·--·•· 0.5 1.8 Savings accounts, 45 selected banks...... - 0.2 1.4 Dist ribution I0.6 WholesalerS' sales, 5 lines combined...... 1.5 Retailers' sales, 30 department stores.... 5.0 Lumber sales, 158 retail yards................ -13.5 O.l 2.1 Life insurance, written·--···•·· · - - Construction Building contracts award ed, value·---··· - 0 ·5 Residentia 'contracts awarded, value.... 11.2 21.0 Building f mits in 17 cities, value.-..... -20.5 Production - 5.0 4.6 Flour._... 6.3 -0.3 ~;~~o~~~ l'n·--······· - 8.9 20.5 -21.3 Zinc ore (shipped) Tri--S-ta_t_e_d-is-tr-ict...... -19.6 316.6 38.1 Lead ore (ship--ied) Tri-State district... . 22.5 581.9 21.9 14.8 CemenL ....... . Grain receipts, 5 iarkets Wheat ............. , ······-································ Corn .... _......... . Oats·---··········· Live stock receipt , 6 markets Cattle _ _ _ _ _ _ _ _ .................... Calves·-- ··························· · - - Hogs_ .......................................................... Sheep.....•..................._ _ _ _ __ Horses and mules .................................... . Meat packing, 6 markets g:f!~e··----···································· Hogs ..................................... ·-···················· Sheep.......................................................... Stocker and feeder shipments, 4 markets Cattle _ _ _ ·········· · · · · · · - - - Calves......................................................... Hogs............................................................ Sheep .......................... ...... - - - - - 1.7 -l4.5 -14.6 - 6.8 - 9.3 -34.5 -II.9 -z.7 -31.8 -20.3 0.7 1 ;:~ 1 3·7 -15.1 - 6. 4 -20.0 14.6 -36.9 -3u - 6. 7 38. 4 128.9 -41.6 = -21.1 8.5 -57.6 7.6 327•7 -17.0 13.6 -21.7 - 47.9 -36.0 13·3 the five weeks and during the year was relatively small. Investments, following a slight decline in April, subsequently increased by 6.3 per cent during the five-week period ended June IO and on that reporting date were 3.7 per cent larger than one year earlier. The increase during the five weeks reflected chiefly an increase in holdings of United States Government direct obligations, while the increase during the year reflected largely an increase in holdings of obligations fully guaranteed by the Government and in holdings of other securiIn Morning Newepapere, June 30. 2 ties. Reserves with the Federal Reserve Bank, which had ., Check collections . through the Federal Reserve Bank of increased in April, declined fractionally during the five weeks Kansas City and branches at Omaha, Denver, and Oklahoma and on June 10 were 5.3 per cent below a year ago. City: Adjusted demand deposits increased further by 5.1 per cent ITEMS AMOUNT 1 935 1 935 1936 1936 from May 6 to June IO and there was a fractional increase in May .................. 5,846,590 5, 1 94,0 74 1, 835,298,000 $ 853,482,000 time deposits, while United States Government deposits and April _ _ __ 809,243,000 5,984,869 857,426,000 5,34i,879 balances held for domestic banks declined slightly. Adjusted Five months.-... 28,929,638 26,030,498 4,248,762,000 3,997,02 4,000 demand deposits at the close of the five-week period were 4.1 Bank Debits per cent and inter-bank deposits of domestic banks 11.2 per cent greater than one year earlier. Debits by banks to individual accounts in twenty-nine The principal resource and liability items of the consolidated reporting cities in the District during the five weeks ended weekly condition statements of the fifty-two reporting •banks, June 3 were fractionally larger than in the preceding five-week for the three dates of comparison: period and I I. 5 per cent larger than in- the corresponding fiveweek period of last year. Check paymeqts for the first twentyJune 10, 1936 . May 6,.1936 June 12 1935 Loans and il}vcstments-total.. $658,002,000 . $628,139,000 ' $614,53,1,000 . two weeks oL 1936 e~ceeded the total for the same .period in Loans and discounts-total.. __. 226,572,000 222,375,000 198,37~,ooo 1935 by II.8 per cent. Secured by stocks and bonds 46,881,000 All other loans and discounts lnvestmen ts-tota U. S. securities direcL-·-······ Obligations fully guaranteed by the U.S. Government.. Other securitie Reserve with F. R. Bank .......... Demand deposits-adjusted .... Time deposits ...... U.S. Government deposits........ Inter-bank deposits: Domestic banks·---·······--········ Foreign banks 50,003,000 176,569,000 43 I ,430,000 254,448,000 49,3o3,ooo 173,072,000 405,764,000 237,243,000 151,491,000 416,159,000 250,904,000 PAYMENTS BY CHECK FIVE WEEKS ENDED Albuquerque, N. M _ _ __ Atchis'bnr Kans_ .......................... 38,676,000 44,94 1,000 43,347,00Q Bartlesville, Okla.·--···-·············· 132,041,000 125,174,000 126,579,000 Casper,. Wyo _ _ _ _ __ 119,881,000 114,424,000 113,478,000 Cheyenne; Wyo ... '. .....~................. .455,602,000 433,343,000 437,744,000 Colorado Springs, Colo..--········· 144,512,000 144,091,000 145,668,000 Denver, Colo..,~.........- .. •·······-17,973,000 18,652,000 . 15,980,000 •Emporia, Kans.·-········--············ Enid, Okla .......................·-········· 352,182,000 316,823,000 354,697,opo Fremont, Nebr_._ . _ __ 132,000 109,000 134,000 Grand Junction, Cola. .._._ ......... Reserve Bank Operations Guthrie, Okla .... ---······-·-··········Holdings of bills discounted, although showing a:. slight Hutchinson, Kans ....................... increase from May 6 to June IO, continued at a low level, Indepe nd ence;Kans ................... Joplin, Mo................................... and the small holdings of bills purchased declined. Industrial · Kansas City, Kans ... _.:_ ........... advances increased slightly during the five weeks but on .June Kansas City., Mo.·-····•·········-····· JO were below their highest point of '/,1,22-1 ,760 reached on Lawrence, Kans.·-······················· ~:~~~~e~~~·i;:::::::~: : : : :~: : : : · • June 5, 1935 June 3, 1936 12,610,000 •13,146,000 'f, 3,812,opo 3,53o,opo 28,176,000 24,523,000 4,667,000 5,948,ooo 8,717,000 7,844,000 16,271,000 13,II8,ooo 182,255,000 160,567,090 3,853,ooo 9,672,000 9,554,000 2,766,000 . 3,058,000 2,623,000 3,3 25,000 1,595,000 1,676,000 II,538,000 . II,974,opo 2,557,000 2,489,000 I0,383,000 8,966,000 14,644,000 14,237,000 322,354,000 333,777,000 3,486,000 3,361,090 32,245,000 29,650,000 8,705,000 7,306,000 107,387,000 . 90,108,000 2,958,000, 3, 1 79,000 170,990,000 144,691,000 4,027,000 3,596,000 15,418,000 ' 15,692,000 8,4II,oao 9,738,000 30,384,000 30,872,000 18,u3,ooo 17,341,000 1 43,3°4,000 I I 1,235,000 47,698,000 43,224,000 Per cent Change 4.3 - 7.414•9 2 7•4 - I.2 10.6 26.8 - 4.8 - 3.6 l 2.7 5.8 2.9 3.5 3.7 8.8 April 15 of this year and were below the total of June l'.2, 1935. Commitments to make industrial. advances totaled '/,1,575,500 Oklahoma City, Okla._.!:._...._. at their peak on February I 5 of this year but had decliried 'to Okmulgee, Okla.:..·-·•·······-······· , '$476,705 by June: 10. Holdings of United States Government Omaha, Nebr... _ _ _ _ , 12.0 securities were unchanged during the five weeks at a level 9.4 - 1.7 · per cent above that of a year ago. Salina, Kans _ _ _ _ __ -13.6 - 1.6 Federal Reserve note circulation, which had increased in · St. Joseph, Mo _ __.__ __ 4.5 April, declined slightly between May 6 and June 10 but on that Topeka, Kans..__..... ···········-······· Tulsa, Oki - 28.8 reporting date was 19.1 per cent greater than on June 12, Wichita, K..,a_n-s.-...-..-..-...-..-...-...-..-...-..-... 1935. Member banks' reserve deposits, following an •increase · , in April; .declined fractionally during the five weeks to a level .- Total ~9 c!t!es, 5 weeks.. _.. ..,.. $..1,24 1,8 21,090 '$ 1,113,670,000 " . II.5 II,8 7.9 pet cent below that of one year earlier. Total 29 c~t~es, 22 weeks_........ 5,369,637,000 . 4,804,251,000 Th .. . I d 1· b"l" . f h kl u. s. 273 c1t1es, 5 weeks...·-···· 42,981,302,000 36,630,926,000 17.3 _e_ prmc1pa resource an 1a 11ty items o t e wee y . u. s. 127.fcities,•2'2 weeks.......... 190,401, 925,000 164,023,871,000 16.1 cond1t1on -statements of the Federal Reserve. Bank of Kansas •Not induded in totals. City and branches, for the three dates of comparison: ,. · Savings·. June IO, 1936 May 6, 193 6 June 12, 1935 Savings deposits atNforty-five selected banks in leading cities Total reserves ......... ···················· 1 234, 135, 28 5 1241 ,5 64•938 1, 206•390• 498 of the District increased slightly- from May r to June . 1, while Bills discounted·--··········............ 253,618 141,270 106,913 Bills purchased............................ 86,58 4 133,256 126,8 96 the number·· of· savings a'Ccounts showed · a slight decrease. Industrial advances .......... _........ 992,495 943,118 1,137,56.5 Savings deposits on June I were I.8 per cent and the number · U.S. securities .....·-·················II6,844,200 116,844,200 106,844,250 ~ of accounts 1.4 per cent greater than·6n June -I, 1935. Total bills and securities............ 118,357,897 118,242,844 I08,215,624 S · d · d · d b h Total resources .... _ _ _ _ _ 8 , 6 , , 6 , 6 avmgs accounts an savmgs epos1ts r~porte y t e 350,767, 981 3 7 0 4 972 394 4 7 0 4 F. R. notes in circulation.......... 143,359",295 , 146,361,475 120,374,075 . -forty-five banks: • ;~:~t:,r~o~~::::::::····················· Member•banks' teserve .dciposits · 173,017,777 173,505,066 ~187,805,761 . · Savings Accounts The discount rate of!~ Federa! Reserve Bank of Kansas City, on all classes ., .. June 1, 193 6·---········•························· .... 4o8,o7 1 of paper and all maturities, remained unchanged at 2 per cent. May 1, 1936..·-········ ... ....... ... ................ 408,715 June 1, 1935·---······································· 402,525 Reserve · Bank .Check ·ColJ.ections Transit operations of this bank .and jts branches declined during-May, ·with the dollar volume of check collections._ below and the number of checks handled above that of May, a935. Check collections ·during the first five months of this year increased 6.,.3 per cent in dollar volume and 11.r per cent in the number of items compared to the first five months of last_year. Savings Dcposi ts $125,672,748 125,008,400 123,467,223 Business .Failures , Commercial failures in the Tenth District during May were , ,, smaller in numbe11 and in the amount of liabilities involved than in any May since 1920. There was also a decline in number compared to April · but a slight increase .in the amount of liabilities. By divisions of industry, there were twenty-two THE MONTHLY REVIEW . I Stores Reporting Kansas City ........ 4 Denve 4 . Oklahoma City.... 3 Tulsa .................... 3 Wichita ..........:..._ 3 Other .cities.......- 13 3 RETAIL TRADE AT 30 DEPARTMENT,S'I'ORES IN THE TENTH FEDERAL ,RESERVE DISTRICT , In Percentages of Increase or Decrease STOCKS (RETAIL) SALES ACCOUNTS RECEIVABLE AMOUNTS COLLECTED STOCK TURNOVER May 1936 Year 1936 May 1936 May JI, 1936 May 31, 1936 compared to compared to May · · compared to compared to Year compared to May 1935 Year 1935 Apr. uo, 1936 May 31, 1935 1936 1935 1936 1935 •Apr.30,1936 Mar 31, 1935 AprH 1936 May 1935 .28 1.61 1.36 18.8 - 2.0 15·5 16.5 - 2.5 - 0.1 4.2 .33 9.9 18.0 12.0 .28 1.48 1.40 o.8 8.1 13.0 0.2 3.2 .32 9.0 8.8 - 1.2 - 2.1 .36 7.6 6.5 .36 1.77 1.73 - 2.5 5.3 7-7 II.O 12.I 4.2 15.6 10.4 8.4 1.3 -3.5 .37 · .35 1.81 1.74 ·- o.8 15·3 .28 1.41 1.42 2.4 4.0 .29 4.0 • - 3.1 - 3.7 4·9 8.o 14.0 9.2 - 0.7 6.9 .JI .27 I.JO I.20 , - 4.9 - 1.5 4-5 . -- TotaL __ ·····-·····- 30 14.1 9.4 - 2.4 x.6 .32 , .29 1.51 NOTE: Percentage of collections in May on open accounts April 30, all 6tores reporting, 45.6. I.39 1.7 9.8 Collections same month last year, 44.6. 2.6 retail, three manufacturing, three wholesale, and two commercial service failures . in the District during May. Business failures reported by Dun and Bradstreet, Incorporated: of the. pre~eding month,. compared to .collection ratios of 45.4 per cent in April and 44.6 per cent in May, 1935 •· Collections on installment accounts averaged 15.2 per cent in May, 16.3 per cent in April, and 15 per amt in May of last year. WHOLESALE: The combined , dollar volume of five rep'.fENTH DISTRICT UNITED STATES ' Liabilities · Number Liabilities . Number resentative wholesale lines reporting to this bank increased May 1936............................. 30 $ 243,000 83z . $15,375,000 1.5 per cent dm1ing,May and was 10.6 per cent greater than in April 1936 ................ - .......... 35 z:26,000 830 14,157,~ May of last year. All lines except drugs reported sales increases May 1935._........................... 39 394,000 I ,004 I 4,339,000 compared to April and all lines without exception an increase Five months 1936................ 201 2;786,000 4,54 1 77,996,ooo 5,1 29 • 76,049,000 Five months 1935·-·-··--.. ·-· , 189 1,830,000 compared to a year ago. The combined sales volume for the first five months of 1936 exceeded sales during the first five Life Insurance Sales of new paid-for ordinary life insurance in the seven ·months of 1935 by 8.9 per cent. By individuaLlines, sales of states in the District increased 2.1 per cent during May and dry goods increased 3.7 per cent cluring the five-montn period, were approximately the same as in May, 1935. Sales for the groceries 2.5 per cent, hardware 16r5 per cent, furnitur~ 14.9 first five months of 1936 decreased 6.6 per cent compated to per cent, and drugs 10.9 per cent. Stocks of- merchandise of the five lines combined decreased sales during the first five months of 1935. Life insurance sales reported to the Life Insurance Sales 1.5 per cent from April 30 to May 31 and .on that date were fractionally smaller than on May 31, 1935. Stocks of dry Research Bureau: April 6 · May goods and drugs increased during.May, while stocks of groceries, May 1936 193 1935 hardware, and furniture decreased. Stocks of hardware, Colorado. __ ··· ................................ '$ 4,067,000 '/, 4,718,000 • t, 4 ,286,000 Kansas ......................................... . 4,836,000 4,991,000 • 5,086,000 : • furniture, and drugs at the close of May were larger than one Missouri ...................................... 14,45°,000 15,39 6,000 14,982,000 year earlier, but stocks of dry goods and groceries had declined Nebraska...................................... 5,330,000 4 301 000 5•148' 000 during the year ' • New Mexico._ _ _ _ __ 878,000 933,000 647,000 • Oklahom....__ _ __ Wyoming.. _ _ __ 5,5°5,000 776,000 5,332,000 913,000 ' 5,.126,000 724,000 '-: Lumber Sales of lumber in board feet at 158 reporting retail yards Seven states.-............................... '/, 36,374,000 '/, -35,638,000 '/, 36;413,000 in the District during May were somewhat smaller than in United State...__ __ 506,207,000 500,380,000 April but~were 26.9 per cent: larger than in May, 1935. During . 503,530,000 the first five months of 1936, sales in board feet increased 50.3 Trade per cent compared to sales for the first five months of last year. RETAIL: The dollar volume of sales at thirty reporting Inventory changes during May were slight, but lumber stocks ·department stores in leading cities of the District increased 5 per cent from April to May, reflecting favorable weather fo! , at the close of the month were 21 per cent heavier than a year the movement of seasonal merchandise and the general im- ago. Collections during May averaged 43.1 per cent of amounts -provement in trade conditions following the receipt of wide- outstanding at the close of the preceding month compared to -spread, beneficial rains, and was 14.1 per· cent greater than in a ratio of 45.5 per cent in April and of 43.8 per cent in May, 1 935· May, 1935, when unseasonably' cool weather and freque·n t rains , May business at t1te I 58 -reporting yards, in percent~s of throughout the month retarded the distribution of summer increase or · decrease (-): merchandise. Sales for the first five months of 1936 exceeded May 1936 sales during the first five months of last year by 9.4 per cent. compared to Stocks of merchandise declined·2.4 ·per cent between April 30 April 1936 ' May 1935 -13.5 26.9 and May 31 but were 1.6 per cent greater at the close of May • Sales of -!umber, board fee.___ _ _ _ .......: "- 3.5 20.I of all materials, dollars...·--·--··-·... than one year .earlier. Collections on open ac~ounts during Sales Stocks of lumber, board f e e ~ - - - - 0.9 21.0 May averaged 45.6 per cent of amou~ts receivable at the close Outstandings, end of month.__ _ 6.6 31.4 Stores Reporting Dry goods-...................... 5 Groceries.......................... 5 Hardware 7 Furnitur 3 Drugs---·-·········-·- 7 WHOLESALE TRADE IN THE TE TH 1 FEDERA.t 'RESERVE DISTRICT In Percentages 0£ Increase or Decrease SALES . ·• OUTSTANDINOS '.A:MoU-NTS COLLECTED May 1936 May 31, 1936 May 1936 compared to compared to compared to April 1936 May 1935 Apr. 30, 1936 May 3:r, 1935 April 1936 May 1935 0. 7 - ..-- 0,I 4•5 9.o I 3•7 8,3 5.6 - 6.5 4•3 • 4·9 "CJ 0.I 6.9 5.2 23.2 2.3 4·9 3.2 13.3 0.4 13.3 ' 4·9 29.:2 2.3 15.4 ... - 5.:2 5.9 r- 3.6 S•4 - 2.2 u.o • ' &roctt.s May JJ, 1936 compared to Apr. 30, 1936 May JI, 1935 . I.I 3.0 .:,r- z.8 -13.7 - 5.1 7.9 - 7.3 II.2 o.8 19.3 M '· -- THE MONTHLY REVIEW 4 Lumber production in the United States for the current year to May 30, according to reports of the National Lumber Manufacturers Association, was 42 per cent above production for the same period in 1935. Lumber shipments and lumber orders booked this year were 26 and 19 per cent, respectively, above shipments and orders a year ago. Building The total value of construction contracts awarded in the Tenth District during May, according to statistics of the F.W. Dodge Corporation, was about the same as in April, while the value of residential contracts awarded showed an increase. Awards exceeded the volume in May, 1935, by a substantial margin, with total awards the highest for any May since 1931 and residential awards the highest for the month since 1930. Total awards for the current year to June 1 increased 61.4 per cent compared to the corresponding period in 1935. The value of constructiqn contracts awarded, as reported by the F. W. Dodge Corporation: RESIDENTIAL Tenth District May 1936 .._ t, 2,734,343 April 1936.... 2,459,885 May 1935 .... 1,553,305 5 Mos. 1936 10,577,568 5 Mos. 1935 5,698,444 TOTAL United States t, 70,253,400 67,151,000 44,901,500 261,290,000 158,416,700 Tenth District t,10,889,002 10,939,733 5,771,912 47,357,668 29,335,889 United States t,216,070,700 234,806,300 126,718,600 996,748,300 548,904,100 Permits and expenditures for construction in seventeen cities in the District during May were smaller than in April but continued above a year ago. The number of permits issued was the largest for any May since 1930 and the estimated cost was the highest for that month since 1931. During the first five months of 1936, permits increased by one-fifth while expenditures doubled compared to the first five months of 1935. BUILDING PERMITS IN TENTH DISTRICT CITIES ESTIMATED COST PERMITS 1935 1936 1936 1935 60 61 t, Albuquerque, N. M.·--··············· $ 368,323 57,449 Cheyenne, Wyo .......................... 86 40 i43,6o5 55,966 Colorado Springs, Colo .. -........... 42,230 42 30 9,613 Denver, Colo............................... 414 485,384 273,941 334 Joplin, Mo •.................................. 18 22,800 17 9,95° 20,345 Kansas City, Kans ..................... 36 79,56o 44 Kansas City, Mo 206 1,052,600 231 228,900 Lincoln, ebr 179 58,082 Il3 83,337 122 Oklahoma City, Okla .........·-·192 276,590 156,985 Omaha, Nebr... 147 121,864 231,829 137 81 Pueblo, Colo .. _···················-··· .... 38,383 23,94.S 54 Salina, Kans 20 13 48,3 23 7,3 25 Shawnee, Okla ............................. 1 4,9 25 21,046 19 15 St. Joseph, Mo 13,475 27 30,745 55 Topeka, Kans. 185,150 87 56 7 1 ,5°5 125,016 105 213,867 83 Tulsa, Okla.·--····························· 193 193 134, 249 203,219 Wichita, Kans.... ·-······················ Total 17 cities, May Five month 1,925 7,7 23 1,585 6,440 t, 2,688,853 t, 2,221,673 15,124,II8 7,285,426 Flour Milling Flour milling operations in the District were increased from 55.2 per cent of full-time capacity in April to 57.8 per cent in May, and production increased 4.6 per cent. Production during May was 10.3 per cent below the average for the month during the past ten years and was 5 per cent below production · in May, 1935, when milling operations averaged 58.3 per cent of capacity. Production for the current year to June 1 declined 4.8 per cent compared to production for the same period in 1935. Although the total volume of fl.our sales in the southwest during May was somewhat below that of April, there was a good run of small fl.our bookings during the first two weeks and a few large round lot sales in the third week of the month as declines in the wheat market narrowed the spread between old crop and new crop wheat and as fl.our prices continued the decline begun late m April. Buyers evidenced increasing interest in new crop fl.our. The volume of unfilled orders on mills' books was reported moderately large, but shipping directions were difficult to obtain toward the end of the month when business turned dull and necessitated a reduction in running time. Prices of bran weakened steadily with the continued improvement in pasturage, but prices of shorts, the small supplies of which were in broad demand for spring pig and poultry feeding, closed the month only slightly lower. Flour production at the principal milling centers of the District, as estimated from the weekly reports of southwestern mills to the Northwestern Miller: Atchison ....................................... . Kansas City_ __ Salina .......................................... Wichit....___ _ __ Outside.. ......................................... May 1936 Barrels II4,783 476,930 I 53,627 152,022 894,875 April 1936 Barrels 107,408 47°, 1 55 152,293 May 1935 Barrels 128,922 497,088 154,93° 155,815 949,718 TotaL ................. ,......................... 1,792,237 1,713,725 1,886,473 •United State.,___ _ 5,004,892 4,992,363 4,878,639 •Represents about 60 per cent of the total output in the United States. Grain Marketing The movement of wheat, barley, and kafir to the five principal markets in the District increased during May, while the movement of corn, oats, and rye declined. As in the preceding month, marketings of all grains except wheat were heavier than a year ago. Receipts of wheat represented 41.7, corn 92.2, oats 93.5, and kafir 37.5 per cent of the average May volume during the past ten years, while receipts of rye and barley exceeded the average. Marketings for the first five months of 1936 showed substantial increases compared to marketings for the same period in 1935, reflecting increased crop production last year. Receipts of grain at the five markets: Wheat Corn Bushels Bushels Hutchinson ...... 442,800 Kansas City..._. 1,726,400 1,716,000 Omaha .............. 498,385 1,094,800 St. Joseph.____ . 123,200 396,000 228,000 Wichita.---····37,700 May 1936.-....... April 1936........ May 1935·-······· 5 Mos. 1936. ___ 5 Mos. 1935·-··· 3,0I8,785 2,896,387 3,786,364 18,012,677 14,351,143 Oats Bushels Rye Bushels Barley Bushels 312,000 268,000 198,000 4,500 54,600 1,500 84,800 187,200 19,250 Kafi.r Bushels 3,900 96,600 1,500 6,500 --- --- --- --- 3,244,500 778,000 848,000 2,449,150 624,000 18,215,418 5,157,000 12,285,460 2,922,500 5,053,700 60,600 291,250 66,300 277,300 24,000 8,000 293,000 1,201,750 83,800 71,350 108,500 93,300 62,600 563,800 287,000 Cash grain prices at the Kansas City market generally declined during May in response to favorable new crop prospects, with wheat down II cents per bushel and corn down 1½ cents despite a fairly active feeding demand which reflected the continued favorable corn-hog ratio. All grain prices except wheat closed the month at a level somewhat below that of a year ago. Cash grain prices at Kansas City: June 15 May 29 Apr. 30 June 15 May 31 May 31 1934 1 935 1935 1936 1936 1936 No. I hard, dk. wheat, bu. '$ .87 f, .88 $ ·99 t, .82,½ 1, .89 t, .94,½ No. 2 mixed corn, bu •.... .61 .60,½ .62 .83,½ .85¼ .55 No. 2 white oats, bu ....... .26,½ .25,½ .26 .39½ .38 .60 No. 2 rye, bu ................... .56 .52 .51 .53 No. 2 barley, bu.·---····· .55 ·45 •44 .56 ·43 1 ·99 No. 2 white kafi.r, cwt.. _. 1.16 1,10 1.13 1.78 I.OJ Crops Heavy general rains during May throughout the central portion of the District from central Nebraska and northeastern Colorado southward greatly improved prospects for late crops, providing sufficient moisture to mature small grains and to promote a g'ood growth of hay, pastures, and row crops. In 5 THE MONTHLY REVIEW PERCE TAGE OF CONDITION OF TENTH DISTRICT CROPS 0 From reports of the United States Oats Barley Spring Wheat Rye 1936 Aver. 1936 Aver. 1936 Aver. 1936 Aver. Colorado __ ______ ________ 86 80 83 70 85 78 85 79 Kansas ____ ________________ 61 80 64 63 71 72 73 77 Missouri ________________ 80 68 63 71 78 76 57 77 Nebraska ________________ 82 80 83 84 71 85 74 75 New Mexico __________ 81 80 81 7:2 72 74 Oklahoma..... ·----···· 70 69 44 49 57 77 Wyoming................ 88 70 70 92 69 90 91 58 82.6 United States ...... _. 66.9 82.7 81.4 63.2 79.6 74.5 75.3 much of this area, however, winter wheat was too far advanced to be benefited materially. The June I condition of all crops was generally somewhat below the average for that date, particularly in Oklahoma, where moisture had been deficient all year until the May rains occurred, and in Wyoming and northwestern Nebraska, where unusually hot, dry weather during May resulted in considerable crop deterioration, although subsequent rains during the first part of June afforded temporary relief to these latter areas. Irrigation water supplies continued good in Colorado and were reported ample for the present in Wyoming. The prevalence of grasshoppers was a threat to all crops. Winter wheat production in the seven states in this District was estimated at 233,771,000 bushels on the basis of the June I condition compared to an estimate of 212,736,000 bushels one month earlier, I 57,594,000 bushels harvested in 1935, and an average of 325,059,000 bushels harvested during the years 1928 to 1932. The indicated 1936 production was the largest for the District since 1931. Winter wheat prospects improved in Kansas and Nebraska during May but remained unchanged or declined slightly elsewhere in the District. Harvest had commenced in Kansas in the early part of June but was expected to be later than last year in Oklahoma where a larger percentage of the crop than usual would be harvested with combines because much of the wheat was too short to bind. Winter wheat production, as estimated by the United States Department of Agriculture, in thousands of bushels: Indicated Indicated May 1, June 1, 1936 1936 Colo ............. 5,79° Kans ........... 130,450 Mo ............. _ 24,492 41,368 Nebr.·---····· N.M ...·-···979 Okla ............ . 29,358 Wyo ............ _ 1,334 II4,796 24,49 2 35,662 1,068 29,358 1,570 Final 1935 2,220 59,887 24,130 36,400 700 33,080 1,177 7 States ____ . U.S............. 212,736 463,708 157,594 433,447 233,771 481 ,870 5,79° Final 1934 3,760 79,663 21,266 l 5,008 561 37,348 481 158,087 405,552 Final Average 1 933 1928-1932 2,412 13,051 1 77,0 54 57,452 16,950 20,217 25,894 54,169 1,210 3,712 3 1,549 55, 145 808 1,7u 136,275 350,792 325,059 618,186 The spring wheat crop m Nebraska and Wyoming was handicapped during May by deficient moisture and above normal temperatures which resulted in a June I condition well Kansas City ......... -.... Omaha....................... St. Joseph .................. Denver..·-··············· Oklahoma CitY--······· Wichita.·-··-·······-····· Cattle 68,797 104,170 24,7II 28,640 31,416 17,622 JU E 1, 1936, COMPARED TO THE 1923-1932 AVERAGE Department of Agriculture Tame Hay Wild Hay Pastures Apples Peaches 1936 Aver. 1936 Aver. 1936 Aver. 1936 Aver. 1936 Aver. 82 86 86 88 86 80 76 76 70 74 82 16 84 56 78 29 79 37 79 75 80 68 63 40 72 25 73 79 57 9 62 zo 86 83 83 84 63 79 47 77 62 26 66 82 80 4'.l 76 85 65 45 81 82 6 64 78 67 64 35 SI 61 82 72 90 67 90 52 93 80.6 67.8 81.3 46.7 64.7 79.o 75.7 74.5 7 2•3 51·3 below the average. Rains since June I partly relieved this situation, but a good yield depended upon unusually favorable weather conditions during the remainder of the season. The spring wheat acreage in western Nebraska was large, owing to the heavy abandonment of winter wheat in that area. Rye prospects in ebraska, the principal producing state in this District, showed a slight improvement during May. The June I condition of barley was 4 points below the average in Nebraska, 7 points below in Kansas, and 6 points below in Colorado. The condition of oats generally was poor, owing to a shortage of moisture at seeding time, low temperatures in April, and smut damage in some areas since heading. Corn planting and the planting of grain sorghums was well advanced after being delayed by low temperatures and dry soil, and cultivation had started. The condition of hay and pastures, while still low on June 1, had begun to improve except in Wyoming, with a prospect of substantial further improvement. The first cutting of alfalfa had generally been completed by the middle of June at a fair yield. The potato crop in the Kaw Valley of Kansas was reported as the largest since 1930. Substantially below normal fruit crops except in Colorado were anticipated as a result of low temperatures during the winter and spring. Live Stock MARKETINGS: Live stock receipts at the six principal markets in the District, including direct shipments of hogs to packers, declined further during May and, as in the preceding month, were smaller than a year ago with the exception of hog receipts, which increased 8.5 per cent compared to receipts in May, 1935, although representing but 41.3 per cent of the average May volume during the past ten years. Receipts of cattle represented 77.5, calves 94, and sheep 89.7 per cent of the average volume. Marketings for the current year to June I showed an increase for hogs but decreases for all other species compared to marketings for the same period last year. Market- ings of horses and mules totaled 6,179 head during May, the average number for that month, compared to 9,439 head in April and 9,063 head in May, 1935. PRICES: Live stock prices at the Kansas City market followed a predominantly lower seasonal trend during May, MAY MOVEMENT OF LIVE STOCK IN THE RECEIPTS STOCKERS AND Calves Hogs Sheep Cattle Calves 2,973 24,580 17,207 •120,587 u9,895 5,224 102,953 8,057 l46,554 961 76,168 2,724 56,979 7,53° 575 29, 273 204,067 4,884 2,740 7, 257 12,339 8,040 29,302 15,447 21,817 4,067 TENTH DISTRICT FEEDERS Hogs Sheep 2,887 3°,9 27 1,244 41,183 7,677 533 20,7u 123 PURCHASED FOR SLAUGHTER Hogs Cattle Calves Sheep 66,66o 14,:228 •109,409 38,189 77,ou 4,263 83,834 7o,549 18,687 6,691 52,384 6o,357 23, 134 12,922 21,7u 2,196 25,u1 II,257 20,703 3, 1 75 14,886 19,798 3,692 7,619 42,618 168,669 36o,9u 100,498 275,356 46,95 2 4,787 7, 249 May l 936·-·--············· 574,47° 321,878 April 1936......-·•·-· .... 387,192 186,397 61,977 7,766 633,369 3,458 43,9 12 54,977 23,498 167,547 303,222 May 1935 332,520 651,996 17,078 4,448 59,487 7 2,9 29 Five months 1936.__ 1,6o4,596 275,793 248,661 265,792 2, 190,395 2,905,088 19,654 95 2, 074 33,000 tFive months 1935--· 1,633,077 320,323 1,928,108 2,985,574 352,217 219,403 837,488 63,346 3o,695 •Includes 76,221 hogs shipped direct to packers' yards. tReceipts include Government purchases of cattle and calves. 253,305 31:::,247 34, 245 333,720 39,u9 3 1 6,545 272,420 401,187 4o,343 212,019 1,831,574 1,565,7u 240,690 1,587,501 1,687,035 6 THE MONTHLY REVIEW but a slight improvement toward the end of the month reduced of about 6 per cent in the movement this spring and of about net losses on the principal classes to about IO cents to $1.00 10 to 15 per cent in the number of cattle wintered over, but per hundredweight. Prices of heavyweight beef steers, in- pastures were fairly well stocked as contracts provided larger fluenced by a continued sluggish demand for dressed beef, acreage guarantees because of the effects of the dry summers declined to the lowest level of the current year near the middle the past two years. The spring movement was delayed •someof May and closed the month 75 cents to $1.00 lower, although what by the lateness of the grass, but recent rains have assured prices of lightweight cattle made moderate advances, owing a good supply of feed and stock water and it was extrected to the broad demand for the light supplies of that class. The that the cattle could be marketed earlier than usual. top for beef steers was $8.80 compared to $13.00 a year ago. Meat Packing Stocker and feeder cattle prices were steady to slightly lower. Packers' purchases at the six principal live stock markets in Hog values declined during the first part of May to the lowest the District, including direct shipments of hogs, indicated a level since last November, with closing prices on the principal further general decline in meat packing operations during ,May, killing classes 30 to 50 cents below final April levels. Butcher, while the slaughter of cattle and hogs continued at a -level weights sold up to $ IO.IO compared to $9.80 in May of last above a year ago. Purchases of cattle represented 83.7, .calves year. Prices of stock pigs were slightly lower. The native . 89.5, hogs 43.1, and sheep 63.3 per· cent of the average May movement of grass lambs was unusually slow in getting under volume during the past ten years. - Slaughter •totals for the way because of backward growing conditions, and spring first five .months of 1936 .showed increases in the ·slaughter of lamb prices were steady to IO cents lower. The month's top cattle and hogs and · decreases in the slaughter of calv-es and for spring lambs was $12.25 compared to $9.65 in May, 1935, sheep compared to the first five months of 1935. and the six-year peak of $12.35 reached in April of this year. The national totals of Federally inspected c-ommercial live Prices of mature sheep declined $1.85 to $2.25, owing to a liberal stock slaughter showed a slight decrease in the slaughter of seasonal marketing of flock cullings. cattle, calves, and sheep but a fractional seasonal increase in STOCKERS A D FEEDERS: The countryward move- the slaughter of hogs during May. Cattle and calf <slaughter ment of stocker and feeder cattle and calves from four market~ , continued at ,a, high level, exceeding the ten-year average for in the District during May was smaller than in April or in May May by 7.7 and 8.2 per cent, respectively, while sheep slaughter of last year, but shipments of hogs and sheep showed increasesr was 4.9 and hog slaughter. 29.2 per rcent below the' a-verage A year ago the cattle feeding ratio was relatively more favorable volume. Sheep slaughter was the, smallest for any May since than at the present time and the volume of cattle and calf I 929 and hog slaughter, except for May, 1935, the smallest shipments was unusually large, while shipments of hogs and since 1910. Slaughter for the current year to June , I showed sheep were at a low level. The outward movement of cattle an increase for all classes of meat animals except sheep comduring May represented 65.2, calves 87.5, and hogs 41.7 per pared to the same period in 1935. cent of the ten-year average for the month, with shipments of Live stock slaughtered under Federal, meat inspection in the sheep exceeding the average by 58.7 per cent. Shipments for United States, reported by the Bureau of Agricultural- Ecothe first five months of 1936 showed a decrease in cattle, calf, nomics from compilations -of the ·Bureau of AnimaLlndustry: and hog numbers and an increase in the number of sheep comCattle Calves , Hogs ·.Sheep pared to shipments for the first five months of 1935. May 1936_········-··--···· 785,516 1502,933 ·. 2,579,414 ·, 1,~12,725 . 524,671 2,558,733 11,266,791 RANGES AND PASTURES: Heavy general rains during .April 1936 _____________ ,__ 812,290 508,029 . 2,172,108 1,584,125 May in the southern part of the Great Plains area from central May 1935________________ ,735,450 Five months 1936___ 4,008,474 2,380,290 · 13,'502,289 • · 6,707,468 Nebraska and northeastern Colorado southward resulted in a Five months 1935.___ 3,559,920 2,354,037 .11,964,500 6,923,211 marked improvement in range conditions, although a few NOTE: Slaughter for Government relief purposes excluded. southwestern areas still had a limited supply of subsoil moisture. Coal Ranges in . western Nebraska gained 4, western Kansas 17, Bituminous coal production in the .District showed a further Colorado 7, Oklahoma 16, and New Mexico 4 c:ondition points. seasonal- decrease during May and was 8.9 per cent below proIn western Nebraska and in New Mexico, the June I condition duction in May, 1935, when output was at an unusua~ly high of both ranges and live stock exceeded the ten-year average. level for that month in recent years. Production for the~current Ranges in Wyoming, however, declined 16 points during the year to June 1 increased 20.5 per cent compared to production month because of a shortage of moisture and high tempera- for the same period of last year. tures, but early June rains temporarily relieved the drought Bituminous coal production reported by the Bureau of Mines: situation and checked the forced movement of cattle. *May 1936 April 1936 • .May 1935 Cattle and sheep made good gains during May with improved Tons Tons Tons green feed and ample stock water following the rains and on · Colorado_____________________________________ _ 279,000 426,000 . . 336,000 349,000 -400,000 ;3-4-6,000 June I were generally in good condition except in the dry areas, Kansas. and Missouri _________________ _ 102,000 ~ I I 5,000 104,000 New Mexico____· · · · - - - - Death losses have been light this year. Good calf crops and Oklahom..._ _ _ _ _ __ 39,000 45,000 41,000 late lamb crops were reported generally. There was some Wyoming __________________ 326,000 406,000 375,000 contracting of lambs during the month, but cattle sales were 1,095,000 1,392,000 1,202,000 very limited. Considerable wool was sold in Wyoming during Six states--------·-- · · - - - - States·----·····-· - - 28,678,000 30,318,000 ' 26;849,000 the latter half of May and a few sales occurred in New Mexico, ' United *Estimated from the weekly reports of the United States Bureau of Mines. where shearing was well under way and was expected to be · completed by the end of June. t;. Zinc and Lead The Bureau of Agricultural Economics estimated the spring, Shipments of zinc ore from Tri-State mines and tailing .. mills January 1 to May 31, movement of cattle into the Blue Stem declined during the four weeks ended May 30, reflecting the and Osage pastures of Kansas and Oklahoma at 253,000 head dull demand for zinc concentrates, while deliveries of lead ore compared to 269,000 last year, 309,000 in 1934, JI 5,000 in 1933, increased . . Production continued at a level somewhat above and an average of 356,000 for the years 1928 to 1932. The shipments, and surplus stocks in mine bins increased further. total number of cattle on pasture in these two sections on June A substantial increase in shipments1 .compared to the corre1 was considerably smaller than a year ago, .owing to declines · ,sponding four-week- period a year ago was attributable-in large THE MONTHLY REVIFW part ·to a strike· of mine, mill, and smelter workers in May of last year and raised the cumulative gain in shipments during the first twenty-two weeks of 1936 to 38.1 per cent for zinc and .µ.1 per cent for lead compared to shipments during the same period in 1935. The tonnage and value of zinc ore and lead ore shipments from the Tri-State district: Oklahoma. __ ····································· Kansas .. - .... · .................................... Missouri............................................ Zrnc OR E Tons Value 16,914 $ 541/248 11,388 364,416 3,028 96,896 4 Weeks ended May 30, 1936·-··· 4 Weeks ended 4 Weeks ended 22 Weeks· ended '22 Weeks ended May June May June 2, 1, 30, 1, 31,330 . 1,002,560 1936.___ 38,980 1,247,36o 1935·-··· 7,521 195,546 1936·-··· 191,620 6,130/240 1935·--· 138,715 3,598,6o7 LEAD ORE Tons 2,523 7°3 204 i Value 126,150 35, 15° 10,200 3,430 $ 171,500 2,800 140,000 503 18,108 21,689 1,062,050 15,366 533,436 Prices at the Joplin market were unchanged during May at '$32 per ton for zinc and $50 per ton for lead compared to '$26 and '$36, respectively, a year ago. During the first twentytwo weeks of 1936, zinc prices averaged $32 per ton and lead prices $48.90 per ton compared to an average of $26 for zinc and '$34.72 for lead during the first twenty-two weeks of 1935. Petroleum The daily average flow of crude oil in the District declined 3.5 per cent during May, but gross production, with one more producing day, showed little change. Production was 6.3 per cent above that of May, 1935, and exceeded the average May volume during the past ten years by about the same amount. Production for the current year to June I was 7.6 per cent greater than during the same period in 1935. Gross and daily average production, estimated from the weekly, reports of the American Petroleum Institute for May, and officially reported by the Bureau of Mines for April, 1936, and May, 1935: _ GROSS PRODUCTION May 1936 April 1936 Barrels Barrels Oklahoma. ___................................ 16,932,000 17,226,000 Kansas .•.. · ................................... . 4,857,000 4,908,000 Wyoming...................................... 1,167,000 1,104,000 Colorado..i.. ..••- ••.••..•. ••...••.•.•.....•••• 140,000 I 59,000 2,313,000 2,088,000 New Mexico..•--··························· May 1935 Barrels 16,215,000 4,736,ooo 1,155,000 123,000 1,675,000 Total five states .......................... Total United States ................... . 23,904,000 25,409,000 92,233,000 82,454,000 7 DAILY AVERAGE PRODUCTION May 1936 April 1936 Barrels Barrels Oklahoma... -.: .............................. . 546,200 574,200 Kansas .......................................... 156,700 163,600 Wyoming...................................... 37,600 36,800 Colorado.--.................................. . 4,5 00 5,3 00 74,600 69,600 New Mexico..•--··························· Total five states.......................... Total United States.................... 819,600 2,975,300 849,500 3,016,000 May 1935 Barrels 523,100 152,800 37,300 4,000 54,000 771,200 2,659,800 Mid-continent crude oil prices have remained unchanged since January 9 at schedules ranging from 86 cents to '$1.18 per barrel according to gravity. In an effort to strengthen the crude price structure, the oil producing states in the midcontinent area agreed to maintain production during June within the totals recommended by the Bureau of Mines. Cold Storage Holdings There was a seasonal decline in United States cold storage stocks of meats and poultry between May I and June I and a seasonal increase in stocks of lard, eggs, butter, and cheese. Net withdrawals of meats were somewhat larger than normal for May, and the net accumulations of lard, cased eggs, butter, and cheese were somewhat smaller than the usual seasonal amounts. Holdings of all commodities on June I except lard, frozen eggs, and cheese were below a year ago, with total stocks of meat at a record low level for that date. Storage stocks of beef were 15.3 and cheese 22.5 per cent above the June I fiveyear average, but inventories of pork were 35.9, lamb and mutton 31.9, miscellaneous meats 5.3, lard 23.1, cased eggs 20, and butter 34 per cent below the average. Stocks of poultry and frozen eggs approximated the average holdings. United States cold storage holdings reported by the Bureau of Agricultural Economics, in thousands of units: *June I May 1 1936 1936 Beef, lbs ··--··········································· 51,147 65,011 Pork, lbs..... .......................................... 440,694 457,402 Lamb and mutton, lbs....................... 1,282 1,785 Poultry, lbs........................................... 41,871 49,324 **Turkeys, lbs......................................... 12,357 13,909 Miscellaneous meats, lbs____ 56,768 6oh9 Lard, lbs............................................... 99,917 83,615 Eggs, cases ...... - - - - 5,681 3,039 Eggs, frozen (case equivalent).......... 2,685 1,976 Butter, creamery, lbs____ 21,075 4,997 Cheese, all varieties, lbs..................... 70,804 67,776 *Subject to revision. **Included in Poultry. June 1 June I 1935 5-Yr.Av. 44,343 63,5 23 5°3,4 13 687,831 2,818 1,883 48,274 41,075 14,258 8,747 57,049 59,957 89,986 129,9 1 7 6,366 7,103 2,660 2,419 31,946 33,096 57,8 15 56,767 National Summary of Business Conditions By the Board of Governors of the Federal Reserve Sy tem Volume of industrial production, whi.ch had increased sharply in April, was maintained in May, and there was an increase in distribution of commodities to consumers. PRODUCTION AND EMPLOYMENT: The Board's seasonally adjusted index of industrial production in May was 101 per cent of the 1923-1925 average, as compared with 100 per cent in April. Production of durable manufactures increased further, reflecting larger output of steel and lumber, partly offset in the total by a reduction in the output of automobiles from the high level of April. At steel mills the rate of activity in May was higher than at any other time since the spring of 1930. This level has been maintained in June, reflecting in part some accumulation of steel by fabricators in advance of the effective date of recently announced price increases. Declines in production were reported for many nondurable manufactures; at woolen miils, however, activity "increased. Output of bituminous coal declined from April to May, while output of crude petroleum continued in large volume. Factory employment increased slightly between the middle of April and the middle of May, contrary to the usual seasonal tendency. Increases were reported at plants producing iron 8 THE MONTHLY REVIEW and steel products, machinery, and most other durable manufactures. Changes in employment in industries producing nondurable manufactures were largely of a seasonal nature. Factory payrolls were somewhat larger in the middle of May than a month earlier. PERCENT PER CENT May, have advanced somewhat since that time and in the week ending June 20 were at 78.7 per cent of the 1926 average, according to the index of the Bureau of Labor Statistics. In recent weeks prices of live stock and live stock products, grains and flour, and textile raw materials and finished products have PEn CENT PER CENT N--.------, 140 140 ~-..,._.._..,..l_N_D_U_,,ST_R_l_A_Lr-P-R_O_D..,.....U-CT_I_O..,.. 120 130 l-----+---t----+---+---,l------+----1---l 130 110 110 120 l=--l'--"l-+---t----+---+---,1------+---+---l 120 100 1QO 110 90 90 120 WHOLESALE PRICES ,oo 1 - - - - + ~ ~ - - - - - + - - - - - + -- + - l - - - - + - - - - - - - - - - 1 100 80 80 90 1-----+---+----+-----+---f--1b-11 - - - -~k--•-+------I 90 70 70 80 60 60 70 50 60 l - - - - + - - - + - - -- + - - ~ ~ - ' - - - 1 - - - - - + - - - + - - - - - I 60 40 ~o ,....,.,_ __.____.____...,____.__ 30 1929 1930 1931 __,'-----'-----'---vw 50 1933 1934 1935 1936 1932 50 Farm 30 1929 Index of physical volume of production, adjusted for seasonal varia- 40 1930 1931 1932 1933 1934 1935 1936 tion, 1923-1925 average=100. By months, January 1929 through May 1936. Indexes compiled by the United States Bureau of Labor Statistics, 1926=100. By months, 1929 to 1931; by weeks, 1932 to date. Latest figures are for week ending June 20, 1936. Total value of construction contracts awarded, according to figures of the F. W. Dodge Corporation, declined slightly from April to May. Awards for residential building continued to increase and in May, as in other months this year, were substantially larger than a year ago when residential building was first beginning to increase from the extreme low level of the depression. ~ DISTRIBUTION: Department store sales, which usually decline at this season, increased from April to May and there advanced. For many steel products price increases have been announced to t ake effect early in the third quarter. BANK CREDIT: Excess reserves of member banks, after a slow increase in May and the early part of June, declined by $900,000,000 in the week ending June 17. The reduction in excess reserves was due principally to an increase in the deposits maintained at theReserve banks by the Treasury, which received large payments for new securities issued, as well as quarterly tax installments. At that time the Treasury began PER CENT P~R CENT 120 - - - - - - - - ~ - - ~ - - - - ~ - - ~ - - " ' - 120 Bl LUO NS OF DOI.LARS 12 110 H - - - ½ t i ~ - - - + - - - - + - - - - + - - - 1 - - - - - + - - - + - - - - - I 110 100 ~-~=---+----+---+---,l------+-----1---l 100 90 i - - - t - ~ : - t - - - - t - - - - - t - - - - - - ' r - - ------i------t---, 90 11 60 -------- ~--v.. . . . ~--..-+l--..!~~4----l---l 7 60 50 3 40 ' 30 _ ____._ ___.__ _...,__,.._ _,__ _.___ __.__ __,___ __, 30 1936 1929 1930 1931 1932 1933 1934 1935 2 50 I----+---+----+-\ \ 40 Indexes of number employed and payrolls, without adjustment for seasonal variation, 1923-1925 average=100. By months, January 1929 through May 1936. Indexes compiled by the United States Bureau of Labor Statistics. was also a rise in sales at variety stores and mail order houses. Freight-car loadings increased by slightly more than the usual seasonal amount. COMMODITY PRICES: Wholesale prices of commodities, which had declined from the middle of April to the middle of 6 GoldSt°Y 9 8 7 _./ 10 70 8 I 5 ,,.V 80 1 0 . - - - 1 - - - ; r - - , r - - - c - - + - - - l - - t - ---+ BILLIONS OF 00!.L.lRS MEMBER BANK RESERVES AND RELATED ITEMS FACTORY EMPLOYMENT AND PAYROLLS '- 4 3 Reserve Bonk ¥'Cre dit ·- N!tf:~,~~k Curre.ncy -- --- 2 ........ 0 1934 1935 Wednesday figures. 0 1936 1934 1935 1936 January 31, 1934, through June 17, 1936. to distribute checks arid adjusted service bonds to veterans and there was an increase in the demand for currency in connection with the cashing of these bonds and checks. United States Government obligations held by reporting member banks in leading cities, which had increased somewhat in May and early June, showed a further sharp increase in the week ending June 17 in connection with the new issue of Government securities. Bank loans also increased.
@FedFRASER