The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
D D THE MONTHLY BUL ETIN Covering Conditions in the Tenth Federal Reserve District FEDERAL RESERVE BANK OF KANSAS CITY For the Information of Member Banks and Business Interests of this District ASA E. RAMSAY, Chairm•n Board Directors and Federal R1serv1 Agent C. K. BOARDMAN, Assistant Federal Reserve Agent and Secretary 0-----------------•-------------------D Vol. 5 KANSAS CITY, MISSOURI, JULY 25, 1920 ANY lines of activity at trade and industrial centers are now experiencing something of the mid-summer quiet, usual for the Tenth Federal Res rve District whose large area is devoted chiefly to agriculture. Intensive effort is being centered 011 the harvesting of grain which, under excellent growing an<l ripening conditions in Junc an<l July, is howing yields mu -h larger than was forecast by prcv ious reports and making 1920 one of the best crop years of history. Roughly estimated, the 1920 crop of winter and spring wheat in this District is expected to be somewhere around 260,000,000 bushels. Oats is estimated at close to 185,000,000 bushels, while rye is expected to exceed last year's production of 11,125,000 bushels and barley is scheduled to go a little better than last year's crop of 28,000,000 bushels. In dollars, at prices prevailing at the markets in July, the value of the 1920 crops of these four cereals is about $900,000,000; while an estimated production of 400,000,000 bushel of corn would-at July prices-add something like $700,000,000 more to the value of grain crops produced this year in the Tenth Federal Reserve District, exclusive of all other products of the farms, orchards and ranges. M In the face of the slowing down of trade and industry, reflected by the reports covering June operations, there is a feeling, in this part of the United States at least, that the good crops now in sight are bound to make good business this fall. It is pointed out that while the political campaign may disturb business to some extent, and that the public is becoming more and more conservative in the making of purchases and investments, the reports indicate that conditions are generally good and such as to insure healthy business in the fall and winter. There are evidences to show that production in many of the commodity lines is increasing, and there is a reported tendency toward price recessions. Adjustment of prices on lower levels, however, is com• ing slowly for the reason that dealers assert that their stocks on hand are high cost goods and whatever sales are made at materially reduced prices are made at their expense. Caution on the part of wholesaler in buying from manufacturers, and of retailers buying from wholesalers, as now prevailing to a considerable extent, is expected to help some in the final solution of the problem of lowering prices. No. 7 The car situation shows some improvement, as is evidenced by the large mo':'ement of ~rain to . ~he markets in June, but the feelmg: con~ernm~ the ~bihty of the railroads to handle the situation this fall 1s one of uncertainty and is causing uneasiness. Last year the railroads had large numbers of cars stored _on the sidclra ks with which to move grain, but this year it is reported the number of cars hcl<l for crop movement is comparatively small. Meanwhile, the car shortage is a serious handicap to others than the agricultural industry. The Monthly Bulletin's' reports say it is restricting the output and distribution of coal; it is causing a tie-up of lead and zinc mines because of the inability to make shipments; it is hampering manufacturing plants in the bringing in of materials and the shipping out of products; it is helping, probably as much as high prices, to slow down building operations and public improvements by the inability to obtain materials. Besides, it is hampering the distribution of merchandise, since reports are not infrequent that goods which usually might have been received, sold, delivered to customers and paid for, are still in transit. FINANCIAL The large demand for money for productive enterprises and crop movement, which has featured the financial situation during the first half of 1920, continues. However, the volume of loans by the Federal Reserve Bank remains at about the same status as a month ago. There have been no recent changes of rates at the Federal Reserve Bank except that the rate on notes secured by U. S. Certificates of Indebtedness has been increased from 5% to the amount of interest borne by the Certificates themselves. Country Member Banks are borrowing for crop moving purposes while banks located in reserve centers of the district are slightly reducing their loans. The movement of the new crop of wheat has already set in and the proceeds of shipments are finding their way into the country and city banks, thus slightly increasing deposits and to some extent easing up the tight money situation. There has also been a noticeabk liquidation of cattle loans due to an improvement in the market for fed cattle. The weekly statement of the condition of the Federal Reserve Bank and it branches, as of July 16, showed the ratio of total reserves to net deposit and Federal Reserve notes liabilities combined was 41.8%, which compares with 41 % on July 9. Outstand- THE MONTHLY BULLETIN 2 ing Federal Reserve notes were $99,190,125. A combined report of eighty-three selected member banks scattered over the District showed their reserve balances increased to $49,293,000 on July 2 from $42,628,000 on June 4. Demand deposits were increased $6,910,000 in the same four weeks, the total on July 2 being $426,662,000. The aggregate of their loans was reduced $2,078,000 in the four weeks. Clearings reported by the Clearing House Association in the cities of this District show an increase for June of $20.3% over the same month in 1919 and also an increase of $20.5 % for the first half of 1920 as compared with the clearings for the corresponding half year in 1919. Commercial Failures, 10th Federal Reserve District. -Monthly reports of Dun's Review show a very low record of commercial failures in the Tenth Federal Reserve District for the first six months of 1920 and also for the same period in 1919. The record is remarkable when the vast number of business institutions and the enormous volume of bu iness i taken into consideration. The report for each of the six: months for the two years follow: Number Failures 1920 1919 January . . . . . . 32 26 Februa1·y . . . . . 29 28 March ........ 11 30 April ........• 32 20 May .......... 16 18 June ......... 22 9 Liabilities 1920 1919 $ 367,433 $ 320,331 484,025 265,103 42,557 582,871 628,450 104,545 179,251 703,255 281,255 31,832 Six Months .... 142 $1,982,971 131 $2,007,937 The reports for the entire United States show 3,352 insolvencies in the first six months of 1920 as compared with 3,463 for the first half of 1919, a decrease in number of 3.2%. Liabilities were $86,743,876 for this year against $68,710,886 for 1919, an increase of 26.2%. MERCANTILE While the wholesale trade in dry goods is quiet, the June reports show an increase of advance orders for fall shipments. One house puts the increase at 100% over June, 1919, but mentions as a fact that the amount of advance orders increased mainly on account of advanced prices. Production is reported as increasing with a downward trend of prices. Both wholesalers and retailers are buying stocks cautiously. In the wholesale furniture trade the combined reports of four leading houses in the district show June sales averaged 3.8% less than in May and 6.3% mor~ than in June of last year. Goods are coming in mort freely at some centers, but are still scarce at others. While it is felt that prices have reached their highest peak there are no declines in sight. Wholesale hardware reports say deliveries are still slow, buying is about normal at. firm prices. Sales in June were 22% better than in May and about the same as compared with June last year. Drug sales by wholesalers in June averaged 9% under the volume of May sales but 31 % larger than in June a year ago. Whole alers are buying heavily on account of slow freight deliveries, while retailers are buying liberally. At present prices are advancing more than they are declining. Industrial chemicals are holding firm in price on account of scarcity, but conditions are improving as to supplies of raw materials. Sales in June were 51 % larger than May and 39% larger than in June last year. Sales for June reported by wholesale grocery houses were about 21.2% larger than in May and 48% above the sales in the same month last year. Retailers were reported as buying cautiously on account of a downward tendency of prices. Unfilled orders were not large. Retail Trade.-The reports of retail stores generally show that trade was about the same in volume in June as in the month of May, but still considerably ahead of June of last year. The reports all reflect a tendency on the part of the retailers to reduce stocks. A summary of the reports of ten department stores in cities of the Tenth District shows the percent of sales, stocks and orders as follows: Percentage of net sales during June, 1920, over net sales during same month last year .......... Inc. 13.4% Percentage of net sales from January 1 to June 30, ove'" net sales for Ramc period in 1919 ........ Inc. 18.2% Pere ntage of stockR at close of June, 1920, over stocks at cJose of same month last year ............ Inc. 40.1% Percentage stocks at close of June, 1920, compared with stocks at close of May, 1920 .......... Dec. 9.2% Percentage averaO"e stockc:; at close of each month this season, beginning with January to average monthly net sales dming same period in 1919. . 353.4% Percentage of outstanding orders (cost) at close of June to total purchases (cost) during the calendar year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25.2% Collections.-Except in a few instances where payments of retailers to wholesalers were not up to normal, the general run of reports showed collections fair to good. AGRICULTURE The Federal and State Departments of Agriculture in thefr July reports showed marked improvement in June in agricultural conditions generally and prospects for la1·ger yields of nearly all of the products of the farms in this Federal Reserve District than previous reports indicated. The weather was favorable throughout the Disti'ict for farm operations. There were plenteous rains, except in a few sections where it was getting dry, but even in those sections it was said there was sufficient moisture in the soil for good growth. A summary of all reports justifies the belief that when final crop estimates are made, 1920 will rank as among the best crops years of record in this part of the United States. The 1920 Wheat Crop.-With more than twothirds of the wheat of this District already harvested at the date of this Monthly Bulletin, thre ·hing is well under way in many localities and new wheat is b~ginning to move into market channels. Former predictions as to the size of this year's crop of wheat are being upset. While it cannot be expected that the banner wheat producing district will roll ttp a crop of 300,994,000 bushels, as it did last year, early threshing returns are showing a higher average yield per acre and a finer quality of wheat than the grower-, anticipated a month or two ago. Assessors' reports, also, are showing that a larger acreage of wheat wa:,; sown last fall than was estimated by correspondent::; reporting to the Bureau of Crop Estimates, while in addition it has been found in many localities that the acreage of wheat abandoned on account of a ba<l THE MONTHLY BULLlt'tIN start or for other reasons is much smaller than was reported in April, May and June. It is generally conceded that the Government's June forecast of 216,399,000 bushels of winter wheat and 19,653,000 bushels of spring wheat for 1920 was too conservative and that the final estimates for this year's crop will disclose a production of wheat 10% to 15% in excess of these totals, or around 260,000,000 bushels of wheat. In Kansas, Secretary J. C. Mohler of the State Board of Agriculture, reported late in June that assessors' returns indicated a total of 10,100,000 acres of wheat sown last fall, as against the 8,951,834 acres reported by crop correspondents and upon which Government forecasts have been made. The difference of nearly 1,150,000 acres, after allowing for acreage abandoned, materially increases the area for harvest and increases the total production of wheat in Kansas. Edward C. Paxton, agricultural statistician for the Bureau of Crop E stimates, U. S. Department of Agriculture, reported July 11 : "The winter wheat forecast is based on the preliminary estimate of 7,725,000 acres for harvest with a condilion of 8-~% of normal at cntting time. The 110,313,000 bushels promised represents an average probable yield of 14.28 bushels per acre. It is almost certain that the enumeration taken by the Kansas as-sessors will show that the acreage seeded to wheat last fall was fully 10% greater than this forecast, should threshing returns substantiate this average yield." Missouri's 19 counties in this district promise 11,255,860 bushels against 10,260,000 bushels produced last year. Oklahoma has 2,811,000 acres as against 3,760,000 acres for last year's harvest. The condition was reported at 84% at harvest time and the yield was forecast at 35,154,000 bushels of wheat. The report of the Co-operative Crop Reporting Service for that state, dated July 9, says: ""Where last year the yield was cut short by the failure of the heads to fill this year they bear grain from the bottom up with kernels plump and heavy. The increased number of farmers who sowed Karned wheat report returns most satisfactory." Nebraska's winter wheat made wonderful improvement in the thirty days immediately preceding harvest time. The Government's June 1 estimate of 50,896,000 bushels of winter wheat for Nebraska was raised to above 54,000,000 bushels in the July forecast. Some harvest reports and returns from threshing coming from the southern part of the state show enormous yields and mdicate that Nebraska will at least duplicate its 1919 record of producing 54,997,000 bushels of winter wheat. The newspapers are carrying telegraphic reports from Kansas telling of enormous yields per acre being disclosed by the early threshing reports, the indications pointing to higher averages than has yet been estimated. The wheat in Kansas-as in Oklahoma, Missouri and Nebraska so far as reported by growers after threshing-is testing 59 to 64 pounds and is regarded as the best wheat that has been grown in years. Should conditions continue favorable until the end j of harvest it is predicted that Colorado will have the largest wheat crop in the history of that state, though the acreage is 205,000 less than last year. The State Agricultural Department forecast is for 22,675,000 bushels of both winter and spring wheat as compared with 17,645,000 bushels produced last year. Wyoming reports wheat conditions good and healthy on an increased acreage, with indications pointing to a larger yield than in 1919 when the drought seriously affected all crops in that state. Northern Mexico has a largely increased wheat acreage this year and while the harvest was in progress reports indicated a large yield. Harvesting the 1920 Wheat.-The harvesting of winter wheat, which began late in May in southern parts of the district, made satisfactory progress through the month of June, except in scattered localities where heavy rains interfered. At the date of this Monthly Bulletin the reports indicated that the harvest was practically over in Western Missouri, Oklahoma, New Mexico and Kansas. It was neariug completion in Nebraska and was under full headway in Colorado and Wyoming. 'l'he reports all tend to show a marked improvement in the harvest labor supply this season as compared with the difficulties experienced last year. This is said to be due to many reasons. One of the most important was increased efficiency of federal, state and city employment agencies, and of civic bodies, in sending ablebodied men to th.e harvest fields. In Oklahoma a "Save the Grain Committee," with N. R. Graham as chairman, did very effective work toward solving the harvest labor problem by enlisting for this vurpose the co-operation of former liberty loan chairmen and workers in every county in that state. Hundreds of men employed in the mines in Missouri, Oklahoma and Kansas helped in the wheat harvest. No trouble was experienced in Kansas on account of shortage of harvest hands, except in the northwestern part of the state; but the release of men from the harvest in the southern and central sections of the state early in July eased up the situation. Another big factor in the solution of the harvest labor problem was a closer co-operation of the country town people and the farmers, by which other activities were suspended temporarily in many communities in order that the wheat might be taken care of. In many of the large wheat producing sections the harvester thresher machine known as the "Combine," which was introduced and tried out last year, was more generally used in the 1920 harvest. lt is estimated that more than 2,000 of these machines were used in this district. As the machine requires only four men to operate it, harvesting and threshing wheat at the same time, it is apparent that there is a great saving of labor. Some of the reports say that it adds from two to three bushels of grain per acre, by saving the grain which usually shatters out and is lost where the cutting and binding, the shocking and later threshing out the grain, are done separately. Corn.-Condition on July 1 forecast a yield of approximately 400,000,000 bushels of corn on 18 426 000 acres in this district. This compares with 397:247:ooo bushels produced last year on 16,785,440 acres. The forecast for July 1 is based on an estimated increase at- 4 THE MONTHLY BULLETIN of 25% in the acreage in Kansas, 5% increase in Oklahoma, 4% increase in N_ebraska, ~ome Increase in t~e nineteen western counties of M1ssoun and also m Colorado, Wyoming and Northern New Mexico. A summary of the situation in the larger corn producing states of the district follows: Condition July 1 Kans. . . . ....... 87% Nebr. . . . . . . . . . . 85 Okla. . . . . . . . . . . 90 Mo. (19 counties). 82 Acreage Est. Bushels Final Bushels 1920 1920 1919 5,594,000 104,636,000 63,300,000 7,382,000 188,241,000 184,200,000 3,300,000 55,660,000 74,400,000 1,571,750 42,437,250 37,299,000 The reports generally say that seldom has corn been so well cultivated and so free from weeds. In Oklahoma rain is needed in some sections but corn continues to do well and most of the early planted i.:; forming ears. In Kansas normal growth, with good stands and high promise is reported for the southern half of the state, and slightly sub-normal development with only fair stands in the northern half. In Nebraska the fields are in fine state of cultivation, free from weeds and promising a go d crop. The same report c mes from W cst.ern Miss uri. 'l'he ond~tion in Colorado is said t. be below normal, many fields showing poor stands, although \tVyoming reports corn in very good condition. Oats were reported in good condition with indications of an increase of 5% to 10% above the crop of last year which in this district was 182,677,000 bushels. In the southern half of the district most of the oats were in the shock by July 4. Rye and barley, now being harvested, were about the same as to per~ent of condition as wheat. Flax in Colorado promised well. Cotton was making fine progress in Oklahoma, the condition running from good to excellent and lit!le damage from weevil to plants which were blooming. The potato crop in the Kaw Valley of Kansas wa."J caved from being cut short by timely rains. Large growers in that region reported yields about normal. Nebraska also reported improved potato prospects, with indications of a much better crop than last year. The Government's forecast on hay for this district indicates a production of 24,055,000 tons, which compares with 19,907,000 tons as last year's total production. Conditions for hay and pasturage, the reports said, were never better. Orchardists in the Missouri Valley sections reported that the apple crop will be about th same as last year, or 50% to 60% of a full crop. In Colorado the best crop in many years was reported with a prospective output of 3,204,000 bushels, compared with 2,795,000 bushels in 1919. Peaches were making fairly good progress in the southern Missouri commercial orchards, while Colorado reports placed the condition at 50% of normal with an estimated yield of 638,000 bushels against 840,000 bushels last year. Grain Movement.-In spite of the continued complaints of a shortage of cars the receipts of wheat at the primary markets of the Tenth Federal Reserve District in the month of J tmc and in the twelve months ending June 30 stablishcd a new high record. The figures for the "wheat year" on receipts at Kansas City and Omaha convey some idea of the volume of wheat movement: Year 1919-20 Bushels Kansas City .............. 92,355,200 Omaha .................. 26,345,000 Year 1918-19 Bushels 54,006,750 19,718,000 Arrivals of corn, oats and barley in the last twelve months were in greatly reduced volume, due to the fact that prospective war demands for wheat at the time of planting for last year's harvest called for the use of several million acres of land formerly plante<l to these cereals. The dry weather last year also had something to do with reducing the corn yield. Tht receipt of these grains for the crop year at Kansas City, with comparison, follow: Year 1919-20 Corn .............. . ..... 11,432,500 Oats .................... 7,787,700 Kafir .................... 4,660,700 Rye . . . . .. .. .. . . .. . . . .. . . 637,200 Barley . . . . . . . . . . . . . . . . . . 2,232,000 Year 1918-19 19,936,450 16,606,900 1,854,700 471,900 2,324,000 Grain Prices in June.-Price ranges of grain at Kan• sas City for the month of June, with the high and lo') figures for the same month in 1919, are fairly in<lic• ati ve of the tr nd of the marl· ts of this li ·trict. These prices w r : Jun<', 1920 No. 1 Hard Wheat ......... $2.70@3.04 No. J Red Wheat ........... 2.71@2.96 No. 2 White Corn .......... 1.77@1.98 No. 2 Yellow Corn ......... 1,70@1.97 No. 2 Mixed Corn .......... 1.65@1.90 No. 2 White Oats .......... 1.05@1.17 *No. 2 White Kafir ......... 2.38@2.60 No. 2 Rye ................. 1.93@2.23 No. 4 Barley ............... 1.38@1.48 *Per Cwt. Jun , 1919 $2.40@2.66 2.28@2.52 1.73@1.88½ 1.76@1.84 1.73@1.84 .68½@ .74 3.22@3.55 1.33@1.50 1.12@1.24 Milling.-The flour milling industry of this district made its best record in the crop year which ended June 30, 1920. The output of flour from the mills at Kansas City in the twelve month was 3,689,550 barrels and at Omaha it was 912,819 barrels. Eightynine mills in Kansas, Nebraska, 01 lahoma and Missouri, which report weekly to the Northwestern Miller, produced 15,924,177 barrels of flour during the croJ) year. According to these figures, the total output a! Kansas City, Omaha and at. outside points from which reports were received, was 20,524,969 barrels. This compares with 16,630,723 barrels of flour produced by these mills in the crop year ending June 30, 1919, the increase being about 23,½%. A number of 'Other mills in this territory from which no complete figures on the flour output are available, report about the same increase. June flour prices ranged $12,65@ 14.75, or 3Sc@7Sc below May prices. LIVE STOCK Conditions continue exceptionally good throughout the district for all kinds of live stock. Pastures in most localities never were better than now, and there are no epidemics among animals. Prospects for any material increase in the supply of meat animals on the markets during the fall and winter are not encouraging, as it is conceded that it will take three to five years to build up the live stock industry after such inroads as were made on it during the war, coupled with the dry season in the northeastern part of the district last y ·ar. ln the mountain region th lamb and calf crop suffered greatly from the sever~ storms in the spring. In the rest of the district the THE MONTHLY 5 BULLETIN calf crop is about the same as last year. The pig a good month for the slaughter of calves, the total crop this year is reported a little below normal, with at the six packing centers being 55% larger than some indications of improvement in some sections. in June of last year. Hogs slaughtered in June were Purebred stock sales are reported as generally satis- 201,500 or 25% less than in May, and 117,500 or 16%, factory and indicate greater interest in better live less than in June last year. Purchases of sheep for slaughter in June were slightly under the May purstock. chases and 16% less than in the same month last year. The Live Stock Markets.-The movements of live The statement of packing operations for the first stock to the markets of this district in June was 2,731 cars less than in May and 289 cars less than in June six months of 1920, as reflected by the purchases of of last year. Compared with May receipts there was animals for slaughter, shows increased slaughter of a small decrease in the supply of cattle and sheep but cattle, calves and sheep and a decrease in the slaughter a large falling off in hog receipts, amounting to 216,- of hogs as compared with the record of the first six 700 head. Calves received were 20,899 or 64.4% more months of 1919. than in May. Compared with the receipts of June, PETROLEUM 1919, the total at the six markets for J unc shows inIntensive development of old and proven fields and creases of 12% on cattle and 18% on calves and losses increased drilling activity in new territory this season of 13% on hogs, 22% on sheep and 2.6% on horses is gradually bringing up production of crude oil. This and mules. A statement covering the fir st six months is particularly noticeable in the reports from Oklahoma of the year shows a marked reduction in the supply and Kansas of the mid-continent field and in Wyomof cattle and hogs but a small increase of calves and iug and Colorado fields. Pipe line runs are now besheep as compared with the first six months of last ginning to exceed shipments and reserve stocks are year. getting lJack lo something like normal. Although Prices.-'fra<lc in cattle in June was more encourag- this, to some c.· tent, is said to be the result of inability of refiners to obtain tank cars to move oil and ing to shippers than any prcvi us month this year. Values started upward early in the month and were its products to and from plants-and several of the carried at the close to the highest levels of the year. refineries are not operating at full capacity-the reBeef steers which topped the markets at around $13 ports clearly indicate that the output of oil is increasat the beginning of June sold as high as $16.25@16.75 ing month by month. Operators are in god spirits at the close of the month. Other cattle showed abou"t and with the high prices they are now receiving for the same range of price. feeders selling at as low as crude oil they see a boom for the industry. June was the best month of the present year in $8.25 for tops early in the month reaching $13.50 at the close. Heavy advances were said to have been the crude oil production, according to the reports. It is estimated that there was a daily output of 427,665 outcome of depleted feed lots and a scarcity of well finished steers. Cattle prices, however, broke early barrels from wells in the Tenth Federal Reserve Disin July, the western markets following the lead of trict, or a total of 12,821,250 barrels for the month. Chicago in a decline of S0c to $1 from the high prices At current prices the total value of the crude oil in at the end of June. Prices of hogs also worke<l up- June was approximately $40,345,000. The June proward during the mont 11 of June and were generally duction figures estimated from the reports, and prob$1.60 higher than at the close of May, but $4.80@4.90 ably slightly under the official f1gures not at this time available, follow: lower than one year ago. The top price reached at Daily Prod'n. Prod'n. for Month Kansas City was on June 30 when $16.15 was paid. Barrels Barrels Sheep prices at the markets of this district were some- Kansas .................... 96,750 2,902,500 what demoralized, due to a break in Eastern market3. Oklahoma . . ................ 285,905 8,568,750 1,350,000 Final prices in June showed sheep were $1.50@3 low- Wyoming . . . . . . . . . . . . . . . . . . . 45,000 er and lambs $1@1.25 lower than at the end of May. Total June ( 30 days) ......... 427,655 12,821,250 Packing Operations.-Purchases of cattle by pack- . Total May (31 days) ......... 410,000 12,710,000 Development operations in June were more active ers in the month of June were about 7o;o less than in May and 3% less than in June of last year. June was and generally more satisfactory as to results than in MOVEMENT OF LIVE STOCK SIX MONTHS IN DISTRICT No. 10 RECEIPTS FIRST HALF OF YEAR Cattle Six months, 1920 .......... 2,431,445 Six months, 1919 .......... 2,630,751 Six months, 1918 .......... 2,903,224 Kansas City . . ........... . 151,156 Omaha ................. . 90,581 Denver ................. . 64,095 St. Joseph .............. . 41,777 Oklahoma City . . ....... . 30,130 Wichita ................ . 17,016 Total for June, 1920....... 394,756 Total for June, 1919 ....... 352,565 Hogs Calves 222,685 5,153,440 212,427 6,183,771 139,095 5,579,475 RECEIPTS FOR JUNE 26,188 205,919 5,944 281,549 5,708 31,182 10,695 112,748 3,460 30,664 42,910 Sheep 2,900,694 2,748,821 2,606,262 130,006 131,752 41,411 49,281 769 2,811 3,345 1,052 1,311 1,228 174 1,271 774,972 890,461 356,030 446,249 8,381 8,604 62,055 44,123 Horses & Mules 111,730 65,274 91,402 6 THE MONTHLY BULLETI the previous month, as the summary which follows shows : New Wells Completed Kansas ......... ... 309 Oklahoma .......... 796 Wyoming . . . . . . . . . . 30 June, 1920 . . . ...... 1,135 May, 1920 .......... 1,277 June, 1919 • . . ...... 1,136 Daily New Rigs & Wells Prod'n., Bbls. Drilling 13,743 481 89,667 2,285 3,560 562 106,970 102,315 55,011 M~i 2'473 , ·while, according to the foregoing! completions w~re 142 less, the gain of 4,655 barrels daily ~ew_ pr~duct10f! for June over ~,faY: is regar~ed as an 111d1catlon that the peak point m oil product10n has not been reached. The bulk of the new production in Yansas wa in the Marion and Butler districts, while in Oklahoma Osage, Okmulgee, Carter, Stephens and Cotto_n f?rnished about 83% of that state's new procluct10n m June The summary is also interesting as a 1:1eans of co~ paring development operations and their results with those of the same month last year. June crude oil prices in_ Kansas ancl Oklahoma were practically the same as 111 May, $2.75 per harr 1 for Healdton and $3.50 per barrel for all. other gr~c!es. Wyoming crude oil sold at the same pnces prcva1lmg in May. 4 MINING Lead and Zinc.-The half year period ending June 30 was unique in that in spite of the ~ifficulties fac~d by the Missouri, Kansas, Oklahoma _mme ope:ators m risinO' costs and difficulties of securing supplies, t~ey still ~bowed an increase in shipments aggregating 64,153 tons with a value of $5,547,906 greater than for the same six months in 1919. There was a small decrease in calamine ores amounting to 2,623 tons, but this was compensated for by an increase in price of $10.20 per ton for that period. There was also an increase of $10.42 per ton for blende _ores over t~e same period of 1919._ The half y~ar Just closed 1s, therefore of interest m demonstratmg the remarkable producti;e powers under ad-yerse condi~ions of the zinc mining district. What 1s true of zmc ores applies with double force to lead ores. The half year just closed showed an 'increase_ of 12,448 tons of lead ore shipped over 1919 and an mcreased value of ~2,923 068. The increased value of both lead and zmc ore~ totaled practically eight and one-half million dollars. A part of this increased value, of course, has come from the remarkable increase in the price of lea<l ores over 1919. Lead ores averaged for the first half of 1919 $58.27 per ton, while for 1920 first half year the average was $102.40, an increase of $44.13 per ton. The month of June showed another decrease in shipments for zinc ores. The shipments for June averaged 8,991 tons compared with 9,703 in May. Shipments of calamine averaged 159 tons per week as compared with 223 tons in May. Prices for zinc ores did not vary greatly throughout the month, prices ranging from $42.50 to $45.00 for blenclc ores and $35.00 for calamine ores. The average. for the month were $44.04 for blende ores and $35.00 for calamine ores; The aggregate shipments for the month were 35,96o tons of blende ores and 636 tons of calamine ores. The same conditions that prevailed for zinc ores also prevailed in regard to lead ores, shipments decreasing to 1,668 tons per week as compared with 1,959 tons in May. Prices also dropped from $100.00 at the beginning of the month to $90.00 at the end of t_!-ie month. The average price for all sales was $93.:,7, which compared with $102.34 in May. The aggregate shipments of lead ores for the t;:1onth was 6,674 _tons; Decreased shipments were due m part to a c~n~muea inability to secure cars and also to the dec1s10n of mine operators to sell no more ores than was absolutely necessary on the present market. The l_ast week of the month was marked by a complete closmg down of the entire mining district, only two mines operating in the entire Oklahoma field. This action was brought about by the realization that the inability to ship ores, the difficulty of obtaining labor, which was rapidly deserting the mines for the harvest fiel~s, the desire to curtail production in order to stabahze the marl~ct and eliminate the huge stock of surplus ores existing in the fields. The shut-down is sch ·clulecl for two weeks, no mines intending starting up earlier than the 12th of Jnly. Thi i · the most complete shut-down in the history _of the industry and cominrr co-incident with the holiday season of Indcpende~ce Day it makes it less harmful for the unemployed than would otherwise have resulted. Colorado Metal Mines.-The metal mining conditions in Colorado have been marked during the pa.st month by a considerable shortage of labor in practically all the mining districts of the sta!e. It 1s p_articularly acute in Cripple Creek and m connect1':'n with the other difficulties of the gold producers will probably result in a very much decreased_ production of gold for the year. A few new operations are reported from various parts of the state, but the lar~cr mines are finding it dificult to keep up prodnct1on on account of the impossibility of obtaining a sufficient number of men. There is very little prospecting going on and consequently not much chance of anything new being found this season. Coal.-While production of bituminous coal in the United States for the 1920 coal year to July 1 is something over 41,000,000 tons ahead o_f 1919 at that d~te, it is also about 26,000,000 tons behmd 1918 production up to July 1. Coal production seems from all reports to have hit a snag, or at least the output shows no perceptible sign of improvemen_t. T~e biggest factor, it is shown by reports from all fields, 1s the transportation disability. At the mines of this district there was some slight improvement in the supply of cars, but as a matter of fact the car situation is acute in Misso\lri, Kansas and Oklahoma and is proving a serious hindrance to the production and movement of coal. Loss on account of labor disturbances is now very low, though there are some scattered strikes here and there. And with the shortage of production and distribution there is a constantly growing demand for coal and no easement from present high prices in sight. Building Building operations in the cities of this district, reported to the Monthly Bulletin for the month of June, clearly reflected the conditions which are hampering THE MONTHLY BULLETIN building. These are summed up as poor freight service, high material costs and tight money. The June reports show a total of 1,386 permits issued, as compared with 1,990 in May and 1,592 in June a year ago. The estimated cost of June construction is placed at $5,876,742 as compared with $6,772,615 in May and $7.047,693 in June, 1919. For the six months of 1920, however, building operations are 89.3% ahead of the same period in 1919 as to value of construction, the total estimated cost of buildings for this half-year being $45,843,902 as against $24,224,107 for the first half of last year. The number of buildings for which permits were issued was 10,644 which is 1,553 more than last year. 7 PACKERS PURCHASES OF SLAUGHTER ANIMALS FIRST SIX MONTHS OF YEAR Cattle Six months, 1920 .... 1,248,300 Six months, 1919 .... 1,130,465 Six months, 1918 .... 1,153,535 Calves Hogs 179,508 3,939,215 114,608 4,247,886 96,500 3,726,200 Sheep 1,769,820 1,457,369 1,301,200 PURCHASES FOR JUNE Kansas City . . . . . . . . 69,518 20,547 166,588 Omaha . . . . . . . . . . . . 60,703 4,699 205,437 Denver . . . . . . . . . . . 11,436 2,491 31,116 10,038 162,848 St. Joseph . . . . . . . . . 24,750 Oklahoma City . . . . . 613 27 2,716 Wichita . . . . . . . . . . 7,088 42,507 97,823 82,392 8,314 41,353 63 649 Total for June, 1920. 174,108 Total for June, 1919. 179,035 37,702 30,301 601,212 718,790 230,574 274,482 BUILDING PERMITS FOR CITIES IN TENTH DISTRICT FOR JUNE, 1920 CONDITION OF EIGHTY-THREE SELECTED MEMBER BANKS July 2, 1!)20 ,Tune 4, 1920 Total U. S. Securili s owned ....... $ 52,392,000 $ 51,118,000 Loans secured by war obligations (Liberty Bonds, Victory notes, Certificates of Indebt.).......... 20,921,000 Loans secured by stocks and bonds other than U. S. Securities. . . . . 80,627,000 79,185,000 loans and investments. . 453,156,000 458,048,000 All other Reserve balance with F. R. Bank.. 19,549,000 49,293,000 42,628,000 Net demand deposits on which reserve is computed. . . .. . . . . . . . . . . 426,662,000 419,752,000 Time Deposits . ............... 97,828,000 98,936,000 June, 1919 Pct. Gain Junc,1920 Est. Est. or Loss P rmits Cost Permits Cost 197 Om1.ha, Neb ...... 111 $ 1,888,620 222 $ 634,320 937,660 64 Kansas City, Mo ... a50 l,'152,950 414 44 521,650 Denver, Colo ..... 342 753,700 278 2,219,743 - 73 Tulsa, Okla. . . . . . 585,793 868,605 - 61 334,015 161 Okla. City, Okla ... 117 801,340 - 69 Wichita, Kans . . . . 79 240,767 116 161,380 - 20 75 128,750 Lincoln, Nebr. . . . 49 152,790 - 21 43 Topeka, Kans ..... 46 119,365 15 53,355 41 74,950 Muskogee, Okla. . . 16 7 9,700 553 Leavenworth, Kan.. 2 64,000 67 56,021 St. Joseph, Mo.. . . . 53 187,855 - 70 36 24,454 96.8 46,630 Colo. Spgs., Colo.. 89 67 Okmulgee, Okla. . . 27 42,550 229,750 - 81 53 43,200 1 Pueblo, Colo. . . . . 60 42,266 47 K. C., Kan ....... 27 37,445 170,276 - 78 17 Cheyenne, Wyo .... 18 8,930 31,725 - 60.9 'Total June, 1920 1,386 $ 5,876,7421,592 Total 6 months.10,614 $'15,8,13,902 9,091 $ 7,047,693 $2-1,224,107 16.6 89.3 BANK CLEARINGS IN CITIES OF TENTH DISTRICT June,1920 Kansas City, Mo ........... $1,001,527,090 Omaha, Nebr. . . . . . . . . . . . . 247,216,949 Denver, Colo. . . . . . . . . . . . . 162,273,406 St. Joseph, Mo............. 70,182 885 Wichita, Kans. . . . . . . . . . . . 66,709:585 Tulsa, Okla. . . . . . . . . . . . . . 59,485,467 Oklahoma City, Okla. . . . . . 55,154,016 Lincoln, Nebr. . . . . . . . . . . . 23,918,413 Kansas City, Kans. . . . . . . . 21,099,893 Muskogee, Okla. . . . . . . . . . 20,528,423 Topeka, Kans. . . . . . . . . . . . 15,208,192 Joplin, Mo. . . . . . . . . . . . . . . 7,607,434 Cheyenne, Wyo. . . . . . . . . . . 7,229,668 Okmulgee, Okla. . . . . . . . . . 5,970,984 Colorado Springs, Colo.. . . . 4,806,038 Pueblo, Colo. . . . . . . . . . . . . . 4,795,902 Bartlesville, Okla. . . . . . . . . 4,750,780 Atchison, Kans. . . . . . . . . . . 4,020,432 Hastings, Nebr. . . . . . . . . . . 3,648,019 Fremont, Nebr. . . . . . . . . . . 3,552,518 McAlester, Okla. . . . . . . . . . 2,975,000 Guthrie, Okla. . . . . . . . . . . . . 2,753,325 Miami, Okla. . . . . . . . . . . . . . 2,73,1,479 Lawrence, Kans. . . . . . . . . . 1,906,447 Parsons, Kans. . . . . . . . . . . . 1,901,754 Lawton, Okla. . . . . . . . . . . . . 653,609 Emporia, Kans. . . . . . . . . . . . 406,061 June, 1919 $ 845,198,349 233,979,756 128,146,460 67,274,414 50,046,474 41,941,989 44,897,443 20,487,459 2,673,602 12,382,070 14,425,681 5,933,131 Inc. or Dec. 18.5% 5.7 26.G 4.3 33.3 41.8 22.9 16.7 689.2 6n.7 6. 28.2 3,692,283 4,219,821 3,430,458 4,130,553 2,589,132 2,760,420 3,255,628 61.3 13.9 36.8 12.6 55. 32.2 9.2 1,272,63~ 116.4 1,688,786 1,700,187 12.8 R56,636 1.8 31. 757,562 46.4 Six Mos., 1920 $6,160,530,479 1,711,369,696 950,915,004 480,653,326 368,363,098 339,163,014 337,606,122 162,054,536 108,814,045 117,521,23-1 93,H7,1W 50,385,093 43,617,792 37,780,477 31,553,089 25,273,291 Six Mos., 1919 Inc. or Dec. $4,950,350,476 24.4% 1,442,509,155 22.8 726,125,251 31.0 454,043,900 6.9 259,516,255 41.9 243,301,964 39.4 256,364,979 31.7 126,284,924 29.7 18,454,169 489.6 70,856,641 63.9 80,227,761 16.1 39,394,000 27.9 22,254,153 19,369,461 41.7 30.5 24,952,366 22,886,893 14,735,769 19,739,513 69.3 16.9 11,790,790 10,246,556 15.1 Total . . . •.•... : ......... $1,802,700,708 $1,496,938,371 20.3% $8,138,347,624 $6,752,953,927 *Totals for six months do not include Clearing Houses for which no complete reports are made. 20.5% THE MONTHLY BULLETIN 8 Statement of Condition of FEDERAL RESERVE BANK OF KANSAS. CITY Including Branches RESOURCES At Close of Business July 9, 1920 July 16, 1920 498,250.00 $ 611,900.00 Gold Coin and Certificates ... $ Gold Settlement Fund F. R. Board .................. . 25,832,041.99 Gold with F. R. Agent ....... . 36,795,200.00 4,247,732.20 Gold Redemption Fund ...... . Gold with Foreign Agents .. . 5,353,445.28 Legal Tender notes, silver, etc. 1,630,350.50 Bills Discounted: Secured by Govt. War Obligations .............• 47,092,445.69 All other ............... . 62,590,037.39 2,615,883.90 Bills Bought in open market .. 8,867,900.00 U. S. Govt. Bonds .......... . U. S. Cert. of Indebtedness .. 12,938,500.00 730,120.39 Bank Premises . . .......... . Uncollected Items and other deductions from Gross Deposits .•.•. .. ............. 61,823,055.83 6% Redemption Fund Against 915,590.00 F. R. Bank notes ......... . 200,925.15 All Other Resources ........ . 26,301,434.61 36,598,950.00 4,106,182.20 5,353,445.28 1,650,593.15 45,076,567.65 61,306,843.44 2,736,172.48 8,867,900.00 12,879,500.00 762,337.92 70,091,738.00 915,590.00 220,670.60 Total Resources .......... $272,131,478.32 $277,379,825.3:3 LIABILITIES At CJose of Business July 9, 1920 July 16, 1920 Capital Paid In ............. $ 4,311,800.00 $ 4,313,150.00 Surplus . . . . . . . . . . . . . . . . . . . . 8,395,257.87 8,395,267.87 Government Deposits . . . . . . . 1,281,642.51 795,687.71 Due to Members, Res. Act.... 82,479,754.03 83,599,825.30 Other Deposits . . . . . . . . . . . . . . 2,229,154.67 2,139,760.79 Deferred Availability Items. . 58,142,643.15 62,284,268.26 F. R. Notes in Actual Circulation . . . . . . . . . . . . . . . . . . . . . 98,651,435.00 99,190,125.00 F. R. Bank Notes in Actual Circulation . . . . . . . . . . . . . . 15,088,500.00 15,006,900.00 All Other Liabilities. . . . . . . . . 1,551,291.09 1,654,860.40 '£otal Liabilities .......... $272,131,478.32 $277,379,825.33 OTHER TOTALS Total Gold Reserves ......... $ 72,726,669.47 $ 72,871,912.09 Total Eaming Assets. . . . . . . . 134,104,766.98 130,866,983.57 Total Gross Deposits. . . . . . . . . 144,133,194.36 148,819,632.06 Contingent Liability as Endorser on Bills Rcdiscounted with other F. R. Banks. 12,766,949.04 19,493,084.38 Ratio of Total Reserves to net Deposit and F. R. notes liabilities combined . . . . . . . . . 41.0% 41.8% Ratio of Gold Reserve to F. R. notes in actual circulation after setting aside 35% against net deposit liabilities . . .. . .. .. . . . . . . . . . .. . 44.5% 45.6% CLEARINGS Total Clearings for Week .... $193,185,026.24 $242,591,742.03 Total number of items handled 852,443 1,021,125
@FedFRASER