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THE MONTHLY REVIEW Of Agricultural, Industrial, Trade, and Financial Conditions in the Tenth Federal Reserve District FEDERAL Vol. 21 RESERVE BANK OF KANSAS CITY, MISSOURI, JULY ROP prospects and ranges and pastures in the Tenth District generally declined rapidly between the middle of June and the middle of July because of extreme high temperatures, subnormal rainfall, and insect damage. July 1 estimates of the Department of Agriculture indicated belowaverage production for nearly all crops in the District in 1936 but an increase in the production of winter wheat and corn compared to last year. The corn crop, however, has suffered extensively since July I as the drought continued to date unabated. Harvesting of the wheat crop was virtually completed in the southern part of the District by mid-July and was well under way in northern sections. A prospective decline in the production of oats was offset in part by the large farm carryover on July I. Marketings of grains and live stock generally increased during June, with a sharp increase in receipts of wheat indicative of the rapid progress of harvesting and an earlier than normal volume marketing of the new crop. Supplies of grains and of cattle, calves, and hogs were heavier than in June, 1935, but hog receipts continued at a low level. Grain prices advanced sharply in June and the forepart of July as crop prospects declined. Hog and cattle prices were somewhat stronger in June, while lamb prices declined. All live stock values weakened the forepart of July. Department store sales declined by less than the usual seasonal amount in June and wholesale trade increased somewhat more than seasonally, with both retail and wholesale trade maintaining the previously established gains over a year ago. Lumber sales, although smaller than in May, were 27.1 per cent greater than in June of last year. Building activity continued at the highest level in the past four years. The volume of payments by check was 6.4 per cent larger than in May and 11.4 per cent greater than in June, 1935. The production of flour and bituminous coal increased during June, while the production of crude petroleum declined. Flour production and the output of crude oil were larger than in June, 1935, but coal production was somewhat smaller than a year ago. Shipments of lead ore showed an increase and zinc ore a decrease during the month, but shipments of both lead and zinc were larger than in June of last year. Packers' purchases of live stock indicated an increase in the slaughter of cattle, calves, and hogs compared to May and to June of last year, although hog slaughter equaled only about half the average volume for the month during the past ten years. C Member Bank Operations The total of loans and discounts of fifty-two reporting member banks in the Tenth District showed virtually no change between June 10 and July 8 and on the latter date was 15.4 per cent greater than on July 10, 1935, reflecting principally an increase during the year in "all other" loans, which include KANSAS CITY 25, 1936 No. 8 BUSINESS IN THE TENTH FEDERAL RESERVE DISTRICT Percentages of Increase, or Decrease (-), for June 1936 over May 1936 and June 1935 and for the first six months of 1936 over the like period in 1935. June 1936 6 Months 1936 compared to compared to Banking May 1936 June 1935 6 Months 1935 Payments by check, 29 cities____ 6,4 II.4 11.7 Federal Reserve Bank check collections 45.2 45.5 13.1 Business failures, number.. _ _ _ _ - 6.7 -41.7 - 3.4 Business failures, liabilitie~--- --60.1 -55.1 40.9 Loans, 52 member bank.,___ _ _ Even 15.4 Investments, 52 member banks_............ 3.3 9,5 Adjusted dem. deps., 52 member banks o.6 4.2 Time deposits, 52 member banks.---···1.2 0.5 Savings deposits, 45 selected banks.__ ._ 1.2 2.3 Savings accounts, 45 selected banks_____ 0.1 1.4 Distribution 16.8 Wholesalers' sales, 5 lines combined...... 7.0 Retailers' sales, 31 department stores.__ - 8.6 Lumber sales, 158 retail yards................ - 5.2 Life insurance, writte•..______ 5.6 Construction 92.1 Building permits in 18 cities, value........ 10.3 44.4 Production Flour_ _ _ _ __ __ -3-4 2.3 4.5 Crude petroleum. ________ 7.8 5.1 - 7.4 Soft coal....... _ _ _ _ _ _ _ _ _ 2.1 1 5-9 -12.3 28.6 36.8 Zinc ore (shipped) Tri-State district...... - 6.1 2.0 298.6 55.1 Lead ore (shipped) Tri-State district.... Grain receipts, 5 markets Whea 74.8 252.4 365.5 Corn_ .. 50.1 41.1 57.8 100.9 Oat 49.7 4 19·9 Live stock receipts, 6 markets 2.6 Cattle.. 32.1 14.6 ·------·---··-······ -12.7 12.1 18.3 Calves·--········ Hogs .. 62.4 19.3 15.8 5.0 Sheep........ -23.8 - 17.7 -41.2 ~1.9 -40.6 Horses and mules....- ...... Meat packing, 6 markets 16.8 16.8 Cattle... 35.o ·················-···-··--7,4 22.5 29.8 Calves·-··········· ·····--·-········21.6 66.6 17-5 Hogs ............ - 2,1 -12.4 Sheep.... - .. - 7.9 Stocker and feeder shipments, 4 markets -18.6 -10.2 13.1 Cattle.. ·-····· ........................... -18.0 Calves.-44.3 - 8.7 16.6 Hogs .. - 8.6 -3I.4 !22.I Sheep ...... _ -46.4 89.8 - loans for commercial, industrial, and agricultural purposes. Investments increased 3.3 per cent during the four weeks to a level 9.5 per cent above a year ago, reflecting chiefly further increases in holdings of United States Government direct obligations. Reserves with the Federal Reserve Bank, which had shown a fractional decrease in May, decreased further during the forepart of June but subsequently increased to a level on July 8 higher than for any reporting date since May 1 5, 1 935• Thia Copy Released For Publication In Afternoon Newspapers, July 30. THE MONTHLY REVIEW 2. Adjusted demand deposits continued to increase between June 10 and July 8 and at the close of the four-week period were 4.2 per cent greater than one year earlier. Balances held for domestic banks, which had declined in May and early June, increased substantially during; 'the four weeks to a level 28.6 per cent above that of July 10, 1935. Time deposits and United States Government deposits also showed increases during the four weeks and during the year. The principal resource and liability items of the consolidated weekly condition statements of the fifty-two reporting banks, for the three dates of comparisons: Loans and investments-total.. Loans and discounts-total_ __. Secured by stocks and bonds All other loans and discounts lnvestments-tota U. S. securities direcL-......... Obligations fully guaranteed by the U.S. Government.. Other securitie Reserves with F. R. Bank. __ ····· Demand deposits-adjusted ...... Time deposits.............................. U. S. Government deposits ........ Inter-bank deposits: Domestic banks·---················· Foreign banks .. July 8, 1936 June 10, 1936 '1,672,229,000 $658,002,000 226,654,000 226,57'.2,ooo 49,612,000 50,003,000 177,042,000 176,569,000 43 I ,430,000 445,575,000 264,413,000 254,448,000 47,756,000 133,406,000 124,069,000 458,480,000 146,313,000 23,056,000 414,941,000 168,000 July 10, 1935 $603,476,000 196,468,000 47,104,000 149,364,000 407,008,000 238,500,000 44,941,000 46,149,000 132,041,000 IIJ,478,000 455,602,000 144,512,000 17,973,000 122,359,000 II9,748,ooo 439,993,000 145,554,000 7,742,000 352,182,000 132,000 322,598,000 108,000 Reserve Bank Operations Holdings of bills discounted for member banks had declined by July 8 to a new low level and holdings of bills purchased continued in small volume. Industrial advances increased slightly between June 10 and July 8 but at the close of the four-week period were below a year ago. The total of industrial loans and commitments to make loans, however, declined during the four weeks but showed a fractional increase compared to the total for the corresponding date of last year. Holdings of United States Government securities increased 5.2 per cent from June 10 to July 8 to a level 14.8 per cent above that of July IO, 1935. The increase during the four weeks reflected a reallocation of Government securities in the open market account of the Federal Reserve System by which the portfolio of this bank was increased by $6,082,.,800. Federal Reserve note circulation increased to a new high level on July 8, reflecting in part seasonal factors and the demand for currency in connection with the cashing of checks and adjusted service bonds by veterans. Member banks' reserve deposits increased 7.4 per cent between June 10 and July 8 but on the latter date were slightly below July 10, 1935. The principal resource and liability items of the weekly condition statements of the Federal Reserve Bank of Kansas City and branches, for the three dates of comparison: July 8, 1936 June 10, 1936 July 10, 1935 Total reserves______ $242,239,348 $234,135,285 $212,970,281 Bills discounte....______ 55,591 253,618 64,543 Bills purchased .. _ _ _ _ _ 86,592 86,584 126,615 Industrial advances_.................. 1,006,3u 992,495 1,160,227 U. S. securities ........ _ _ _ _ 122,927,000 u6,844,200 107,044,200 Total bills and securities............ 124,256,494 uS,357,897 108,395,585 Total resources._______ _ 408,754,700 387,064,972 356,686,615 F. R. notes in circulation ...·--·· 152,086,825 143,359,295 122,596,670 Member banks' reserve deposits 185,890,129 173,017,777 190,783,352 The discount rate of the Federal Reserve Bank of Kansas City, on all classes of paper and all maturities, remains unchanged at 2 per cent. Reserve Bank Check Collections The dollar volume of check collections through this bank and branches during June was substantially greater than in May or in June of last year, reflecting in part check clearings incident to the payment of the,.bonus. Check collections for the first half of 1936 increased 13.1 per cent in dollar volume and 14.4 per cent in the number of items handled compared to the first half of 1935. Check collections through the Federal Reserve Bank of Kansas City and branches at Omaha, Denver, and Oklahoma City: AMOUNT ITEMS June___ ............ May.................. Six months·-····· 1936 6,646,134 5,846,590 35,575,772 1935 5,054,843 5, 1 94,0 74 31,085,341 1936 $1,212,872,000 835,298,000 5,461,634,000 1 935 $ 833,638,000 853,482,000 4,830,662,000 Bank Debits Debits by banks to individual accounts in twenty-nine reporting cities in the District during the four weeks ended July 1 were 6.4 per cent greater than in the preceding four weeks and I 1.4 per cent greater than in the corresponding four weeks of last year. Check payments for the first half of 1936 exceeded the total for the first half of 1935 by 11.7 per cent. PAYMENTS BY CHECK (In thousands of dollars-ooo omitted) FOUR. WEEJCS ENDED July 1936 July 3, 1935 Albuquerque, N. M,__ J 11,250 $ 10,967 Atchison, Kans.________ 3,581 3,562 Bartlesville, Okla.·--··· 25,441 21,896 Casper, Wyo.·---········· 5,456 4,352 Cheyenne, Wyo........... 6,649 6,239 Colorado Springs, Colo. 12,262 12,273 Denver, Colo............... 149,739 131,731 *Emporia, Kans..-....... 2,981 Enid, Okla. ___ ············ 9,321 8,412 Fremont, Nebr.. -......... 2,845 2,550 Grand Junction, Colo. 2,906 1,987 Guthrie, Okla............... 1,497 1,423 Hutchinson, Kans....... 12,248 10,072 Independence, Kans... 2,591 2,164 Joplin, Mo....... ............ 8,184 7,437 Kansas City, Kans..... 12,655 10,919 Kansas City, Mo......... 274,291 26o,890 Lawrence, Kans........... 3,585 2,995 Lincoln, Nebr.._:.......... 27,086 24,853 Muskogee, Okla........... 7,244 6,273 Oklahoma City, Okla. 91,927 89,181 Okmulgee, Okla........... 2,804 2,455 Omaha, Nebr............... 140,559 121,080 Pittsburg, Kans........... 3,6o6 2,967 Pueblo, Colo,.--··········· 14,174 12,388 Salina, Kan..____ 8,820 6,885 St. Joseph, Mo ..-......... 23,288 23,025 Topeka, Kans.·--········· 15,755 14,640 Tulsa, Okla.._ :............ 125,231 102,361 Wichita, Kans............. 43,898 35,667 1, Total 29 cities............ J 1,048,893 J 941,644 Total 273 cities, U. S. 36,731,841 33,437,356 *Not included in totals. TWENTY-SIX WEEJCS ENDED July 1, 1936 July 3, 1935 67,479 $ 6o,303 19,117 19,805 146,043 · 129,397 30,657 25,766 43,382 38,964 84,426 69,765 920,959 805,852 19,844 51,134 49,008 14,323 15,899 13,377 16,975 9,931 9,322 63,619 68,626 14,426 12,76o 54,806 47,234 75,579 68,302 1,703,177 1,626,574 20,275 18,398 158,543 152,703 46,682 38,667 558,942 479, 277 17,532 15,471 870,869 750,510 23,206 20,643 86,949 79,232 45,842 46,018 164,510 155,757 97,599 94,568. 747,456 6oo,477 262,516 234,796 $ ,,, 6,418,530 f, 5,745,895 227,133,766 197,461,227 Savings Savings deposits at forty-five selected banks in leading cities of the District increased slightly from June I to July 1, while the number of savings accounts showed little change. Savings deposits on July I were 2.3 per cent and the number of accounts 1.4 per cent greater than on July 1, 1935. Savings accounts and savings deposits reported by the forty-five banks: July 1, 1936.............................................. June 1, 1936.............................................. July 1, 1935-............................................. Savings Accounts 408,579 408,071 402,987 Savings Deposits $127,179,187 125,672,748 124,322,714 Failures Commercial failures in the Tenth District during June were smaller in number and in the amount of liabilities involved than in the preceding month or in June of last year. The number THE MONTHLY REVIEW 3 RETAIL TRADE AT 31 DEPARTMENT STORES IN THE TENTH FEDERAL RESERVE DISTRICT In Percentages of Increase or Decrease ACCOUNTS RECEIVABLE STOCU (RETAIL) SALES Stores June 1936 Year 1936 June 30, 1936 Report- compared to compared to compared to ing June 1935 Year 1935 May31,1936 June30,1935 Kansas City____ 4 5.8 9.3 - 1.3 9.0 Denver_ _ _ 4 II.9 II,9 - 9.I 3•4 Oklahoma City._. 3 25.9 10.5 - 9.6 3.9 10.7 10.5 - 3.4 13.4 Tulsa...·--············ 3 Wichita................ 3 II.8 6.o - 9.1 - 6.8 Other cities--······ 14 8.7 8.3 - 4.4 o.8 STOClt TUR.NOVEJl June Year 1936 1935 1936 1935 .28 .28 1.89 1.65 .34 .31 1.84 1.73 .37 .JI 2.16 2,05 .35 .35 2.16 2,10 .29 .24 I,72 I.66 .26 .24 1.57 1.44 Tota..__ _ _ JI II.0 9.7 - 5.7 4-3 .JI .28 1.83 NOTE: Percentage of collections in June on open accounts May 31, all stores reporting, 46.7. of defaults during the first six months of the year was below that for the first six months of 1935, but there was an increase in the amount of liabilities owing to increases during January and March of this year. Business failures reported by Dun and Bradstreet, Incorporated: TENTH DISTR.ICT June 193L........................... May 1936·-··························· June 1935·-··························· Six months 1936.................. Six months 1935.................. Number 28 30 48 229 237 UNITED STATES Liabilities f, 97,000 243,000 216,000 2,883,000 2,046,000 Number 773 832 944 5,3 14 6,073 Liabilities f, 9,177,000 15,375,000 u,918,000 87,173,000 88,967,000 Life Insurance Sales of new paid-for ordinary life insurance in the seven states in the District increased further during June and for the second time this year were larger than in the corresponding month of 1935. Sales for the first six months of 1936, however, were 4 per cent below sales for the first six months of 1935. Life insurance sales reported to the Life Insurance Sales Research Bureau by companies representing 90 per cent of the total legal reserve ordinary life insurance outstanding in the United States, in thousands of dollars: May 1936 f, 4,o67 New Mcxico·---······· Oklahoma. __ ............. Wyoming.................. June 1936 f, 4,9 19 4,692 16,153 5,008 858 5,998 790 Seven statcs·--········· f, 38,418 f, 36,374 United StatCL--... 532,994 503,530 Colorado.--............... Kansas...................... Missouri .................... Nebraska .................. 4,836 14,982 5,33° 878 5,5°5 776 f, June 1 935 4,384 4,686 14,641 4,048 637 5,627 790 ' Six Months 1 935 1936 26,220 f, 26,132 28,452 30,878 88,146 95,894 26,393 26,952 4,420 5,008 34,504 33,874 4,351 4,965 f, 34,813 $ 213,688 $ 222,501 490,268 3,007,255 3,255,496 Trade RETAIL: The dollar volume of sales at thirty-one reporting department stores in leading cities of the District declined by somewhat less than the usual seasonal amount during June, reflecting in part a continued good demand for seasonal merchandise and the distribution of checks and adjusted service bonds to veterans. The volume of sales during June and during the first six months of this year was at the highest level since 1931, exceeding sales in June and the first six months of 1935 by l l and 9.7 per cent, respectively. June 30, I 936 compared to May31,1936 June30,1935 - 9·9 14-7 I.2 5.9 - 0.3 II.o - 7.5 4•7 0.9 4.5 - 3.7 8.3 AMOUNTS COLLECTED June 1936 compared to May r936 June 11.3 0.2 - o.6 3.5 - 8.J 10.7 1.69 - 2.9 8.4 4.4 Collections same month last year, 43.9. 1935 18.7 14.5 16.1 24.7 1.8 19.9 16.7 Stocks of merchandise declined further between May 31 and June 30 but were 4.3 per cent larger at the close of June than one year earlier. Collections on open accounts during June averaged 46.7 per cent of accounts receivable at the close of the preceding month, compared to collection ratios of 45.6 per cent in May and 43.9 per cent in June of.last year. Collections on installment accounts averaged 16.1 per cent in June, 15.2 per cent in May, and 14.5 per cent in June, 1935. WHOLESALE: The combined dollar volume of five representative wholesale lines reporting to this bank increased 7 per cent, or somewhat more than the usual amount, from May to June and was 16.8 per cent greater than in June, 1935. The combined sales volume for the first six months of 1936 was 10.5 per cent above that for the first six months of 1935, with sales of dry goods increasing 5.8, groceries 3.7, hardware 18.6, furniture 17.9, and drugs 12 per cent during the six-month period. Stocks of merchandise of the five lines combined declined 3 per cent from May 31 to June 30 but at the end of June were fractionally larger than on June 30, 1935. All lines except drugs showed a decrease in stocks during the month and all lines except groceries an increase in stocks during the year. Lumber Sales of lumber in board feet at I 58 reporting retail yards in the District, following a decrease in May, declined 5.2 per cent further in June but were 27.1 per cent larger than in June, 1935. Dollar sales of all materials showed a similar trend. Sales in board feet for the first half of 1936 exceeded sales during the first half of 1935 by 45.8 per cent. Stocks and outstandings showed little change between May 31 and June 30 at a level well above a year ago. Collections during June averaged 43.5 per cent of amounts receivable at the close of the preceding month, approximately the same ratio as in May but somewhat better than the ratio of 34.9 per cent in June, 1935. June business at the 158 reporting yards, in percentages of increase or decrease (-) : June 1936 compared to May 1936 June 1935 Sales of lumber, board fee.___ _ _ __ - 5.2 27.1 Sales of all materials, dollar_ __ - 4.9 33.0 0.1 20,5 Stocks of lumber, board feeL---···---O.I 28.1 Outstandings, end of mont.~------ WHOLESALE TRADE IN THE TENTH FEDERAL RESERVE DISTRICT In Percentages of Increase or Decrease SALES Stores Reporting Dry good-..____ 5 Groceries_........................ 5 Hardwar 8 Furnitur 3 Drngs 7 June 1936 compared to May 1936 June 1935 3.9 16.3 2.I 7.6 11.9 26.6 15.8 31.4 8.7 17.9 .AMOUNTS COLLECTED 0UTSTANDINOS June 30, 1936 compared to May 31, 1936 June 30, 1935 3-5 ::i..6 - 5.9 - 1.8 0.5 1.7 - 7.6 J.I 22.6 5.5 June 1936 compared to May 1936 June 1935 +4 14.6 12.0 19.2 14.8 37.8 26.2 37.9 - 0.5 17.8 STOCKS June 30, 1936 compared to May 31, 1936 June 30, - 1.5 - 5.0 - 3.1 1935 2.9 6.6 2.0 -14.I I.I 2.1 8.3 THE MONTHLY REVIEW 4 The National Lumber Manufacturers Association reported that lumber production in the United States for the current year to June 27 was 45 per cent above production for the same period in 1935. Lumber shipments and lumber orders booked were 29 and 22 per cent, respectively, above shipments and orders booked a year ago. Building Permits and expenditures for construction in eighteen cities in the District~ after declining in May, increased during June and continued at the highest level for permits since 1930 and for expenditures since 1931, both during June and during the first six months of this year. June permits were 13.1 per cent and expenditures were 44.4 per cent larger than a year ago, with permits up 16.3 and expenditures up 92.1 per cent during the six months. BUILDING PERMITS IN TENTH DISTRICT CITIES PERMITS EsTIMATED 1936 1936 1 935 Albuquerque, N. M. t, 453,83o 87 74 Cheyenne, Wyo._ 66 58,142 45 Colorado Springs, Colo............... 48,700 29 51 Denver, Colo. __ 488 638,673 363 Hutchinson, Kans ....................... 69 133 35,5 14 Joplin, Mo. ___ II 27,175 34 Kansas City, Kans..................... 23,710 40 36 Kansas City, Mo 224 320,900 333 Lincoln, Nebr 177 131,361 148 Oklahoma City, Okla................. 133 ,+I8,6o5 225 122 Omaha, Nebr 218,555 109 Pueblo, Colo.-.......................... 65 51 37,9 20 Salina, Kans 66,86o 24 17 Shawnee, Okla._ II 15 13,990 St. Joseph, Mo 48 19 33,760 81 Topeka, Kans. 108,670 64 II0 Tulsa,Okl 201,155 89 Wichita, Kans.__ 186 '2.03 '2.'lI,879 ' 2,u2 Total 18 cities, Jun Total 18 cities, May 2,014 Total 18 cities, 6 months·--······· 10,107 1,868 1,681 I 3,059,399 8,691 2,773,226 18,443,057 CosT 1 935 Tl,848 n3,531 26,645 425,351 34,866 5,6oo 18,830 436,500 7°,9 23 2 55,875 189,857 n,707 z5,76o 17,6oo 37,6oo 100,560 178,268 96,3 19 $ 2,n8,640 2, 237,949 9,601,201 Flour Milling Flour milling operations in the District were increased from 57.8 per cent of full-time capacity in May to 59.1 per cent in June, and production increased 2.3 per cent. June production was but I per cent below the average for the month during the past ten years and exceeded the output in June, 1935, by 4.5 per cent. Production for the first six months of this year and for the wheat year ended June 30, however, declined by about 3 per cent compared to production for the first six months of 1935 and for the wheat year ended June 30, 1935. Flour production at the principal milling centers of the District, as estimated from the weekly reports of southwestern mills to the Northwestern Miller, in barrels: Atchison.·--·········· Kansas CitY·--·· Salin _ _ __ Wichit _ _ __ Outsid....__ __ June 1936 120,473 502,564 172,453 153,743 885,999 May 1936 n5,695 476,930 153,627 152,022 894,875 June Wheat Year Wheat Year 1935 1935-1936 1934-1935 IIl,006 1,359,191 1,373,469 488,360 5,909,235 6,0122,659 138,076 1,890,818 1,795,515 154,618 1,761,207 1,855,692 864,00I II,156,120 II,783,669 Tota..____ 1,835,232 1,793,149 1,756,061 22,076,571 22,831,004 *United States.__. 5,o69,6o8 5,004,892 4,832,632 63,748,108 63,131,547 *Represents about 60 per cent of the total output in the United States. Flour trade in the southwest improved during June as prices advanced with the upturn in the wheat market. The bulk of new business consisted in small lots for nearby shipment, with an increasingly large proportion of the orders for new crop flour. Shipping directions on old contracts, many of which were taken at lower price levels, became more plentiful as the month progressed, but the volume of unfilled orders at the close of June was reported moderately large. Flour prices at the Kansas City market reached their peak for the crop year last October, when wheat was at the high point and the processing tax was in effect, and subsequently declined to the low level of the crop year in May and June. Mill feed prices, influenced by relatively small supplies, higher grain prices, and a broad demand consequent to deteriorating pasturage and Government purchases of bran for grasshopper poison, reached the high level of the year in June. Grain Marketing The movement of wheat, corn, oats, and kafir to the five principal markets in the District increased during June, while the movement of rye and barley declined. A sharp increase in receipts of wheat reflected the rapid progress of harvesting and an earlier than normal volume marketing of the new crop. Marketings of all grains during June and the first half of 1936 were substantially heavier than a year ago and were generally above the average for these periods during the past ten years. Receipts of wheat, however, represented but 63 per cent of the ten-year average for the six-month period. Marketings for the crop year ended June 30 showed increases over the extremely light receipts of the preceding year for all grains except corn, receipts of which included heavy shipments from Iowa on contract during the crop year ended June 30, 1935. Receipts of the principal grains at the five markets: 535,333 2,256,000 1,713,600 Oats Bushels 4,500 566,000 342,000 230,400 595,500 252,000 4,522,500 10,400 Wheat Bushels Corn Bushels Hutchinson .................................. Kansas CitY·---··························· Omaha...... St. Josep Wichit 3>4 1 5,500 June 1936 May 1936.-............ June 1935 Six months 1936.. Six months 1935.. Crop year 1935-1936.................. Crop year 1934-1935 .....·-·········· I4,05 2,533 3,018,785 3,987,563 32,065,210 18,338,7o6 n6,189,584 71,907,5o9 4,576,750 3, 244,500 2,899,600 22,792,168 15,185,060 36,907,918 53,408,810 5,348,800 1,250 1,164,500 778,000 224,000 6,321,500 3,146,500 19,5 29,500 8,142,000 Despite heavier receipts, cash grain prices at the Kansas City market advanced during June and increased sharply early in July in response to unfavorable crop reports as the hot, dry weather continued. Cash grain prices at Kansas City: July 15 June 30 May 29 July 15 June 29 June 30 1936 1936 1936 1935 1935 1934 No. I hard,dk. wheat, bu. $1.08 $ .94¾ $ .88 $ .89 $ .88¾ $ .87¾ No. '2 mixed corn, bu ..... .86 .84¾ .58 .87¾ .65¾ .6o¾ No. 2 white oats, bu ....... ,39¾ .32 .z5¾ .35 ,41¾ .43 .73 .59 .52 .53 .59 .67 No. 2 rye, bu·---···-····.48 .54 .58 No. 2 barley, bu·----····· .68 -5~ .45 No. 2 kafir, cwt,_ ............ 1.39 1.40 1.80 1.00 I,'2.3 I.IO Crops Crop prospects, which had improved materially in nearly all parts of the District in May and the forepart of June, declined rapidly after mid-June because of extreme high temperatures 1 a shortage of moisture supplies, and insect infestation. In Wyoming the unfavorable weather conditions which had prevailed in May continued in June and early July. Drought had already reduced the production of small grains and early hay crops, and considerable abandonment of spring wheat and other crops appeared to be imminent as the moisture shortage continued. By the third week in July, the early corn crop had deteriorated to a point where much of it was practically beyond recovery. Fruit prospects were poor because of winter injury 5 THE MONTHLY REVIEW ESTIMATED PRODUCTION OF LEADING FARM CROPS IN THE UNITED STATES AND THE TENTH FEDERAL RESERVE DISTRICT · From Reports of the United States Department of Agriculture, in Thousands of Units, ooo Omitted W1NT£1. WHEAT SPRING WHEAT CoR.N OATS BAI.LEY TAME HAY POTATOES Tuns Bushels Bushels Bushels Bushels Bushels Bushels Yield July Est. Yield July Est. Yield July Est. Yield July Est. Yield July Est. Yield July Est. Yield July Est. 1936 1935 1936 1935 1936 1935 1936 1935 1936 1935 1936 1935 1936 1935 1,771 1,712 5,46o 2,380 5,188 4,lfl 13,234 10,761 4,335 4,480 5,936 6,420 13,130 18,ooo Colorado--············ Kar,,a...,...__ __ 130,650 63,947 78 108 61,325 39,420 29,133 40,810 3,861 3,640 2,145 2,325 1,531 1,915 Missouri_ __ 27,776 25,562 99 86 no,088 72,890 26,384 29,502 1,292 1,292 2,750 4,524 1,837 2,553 Nebraska............._ 44,070 35,620 1,692 3,055 179,576 1o6,630 33,285 72,704 8,450 15,180 6,955 10,080 1,991 2,629 1,001 1,155 220 308 3,500 2,700 475 546 120 161 469 420 New Mexico __ ····255 241 Oklahoma____ ..._ 26,992 33,080 12,252 25,872 20,640 35,825 810 1,568 1,920 2,730 632 748 Wyoming.____ 917 1,309 1,380 1,397 924 2,26o 1,680 2,730 1,008 1,470 1,798 2,610 783 1,015 Seven state•·---···· Tenth District.___ United States_...... 236,866 214,027 512,085 163,053 141,955 464,203 8,657 8,483 126,314 9,106 380,899 260,533 8,915 291,776 200,468 159,241 2,244,834 2,291,629 and late spring frosts. The acreage for harvest and the indicated total crop production on Ju]y I were above that of last year, owing largely to increases shown for winter wheat and corn. The indicated production of most other crops was below that of 1935. Estimates of the United States Department of Agriculture on July 1, shown in the accompanying tables, indicated a total wheat crop in the seven states in the District 43 per cent larger than in 1935 but 27 per cent below the average during the years 1928 to 1932, a corn crop 46 per cent larger than last year but 34 per cent short of the five-year average, and an oats crop 38 per cent below that of last year and 34 per cent below the average. These estimates, however, do not allow for the severe decline in corn prospects which has taken place since July 1 and which will no doubt greatly reduce production below the July I estimate. The farm carry-over of wheat in the District on July I was about one-half and of corn about one-third the average amounts so held on that date during the years 1928 to 1932, while stocks of oats sharply exceeded the average. Live Stock MARKETINGS: Receipts of cattle, calves, and hogs at the six principal markets in the District, including direct shipments of hogs to packers, were larger in June than in May or in June of last year, while marketings of sheep declined. Hog receipts, although larger than a year ago, represented but 49.2 per cent of the average volume for June during the past ten years, while cattle represented 99.4 and sheep 82.8 per cent of the average and calves exceeded the average by 8.2 per cent. 15,932 186,597 93,646 161,035 805,420 1,196,668 I 21,477 29,731 29,167 26,714 315,359 40,689 36,742 387,678 8,800 7,138 65,743 10,813 8,578 ii,146 Marketings for the first six months of 1936 showed an increase in the number of cattle and hogs and a decrease in the number of calves and sheep compared to last year but approximately the same proportions of normal as during the month of June. Receipts of horses and mules totaled 3,672 in June, or 20 per cent Jess than the ten-year average number, 6,179 head in May, and 6,250 head in June, 1935. PRICES: Hog prices at the Kansas City market advanced 80 cents per hundredweight on the principal killing classes during June to close '/,1.20 to '/,1.40 above the level of December 31, 1935, reflecting exceptionally light market supplies during the six months just ended and the removal of the processing tax early in January. At the end of June, hog values were 15 cents below the peak of '/,10.75 reached in February but were above the high point during the first six months of last year. Prices of prime heavy beef steers were strong to 25 cents higher during June but had declined steadily since the first of the year recording a net loss of from f,2 to $4. The top price this year was '/,12. 50 in January compared to a top of f,14. 2 5 reached in April of last year. The continued hot, dry weather forced stocker and feeder cattle values down sharply in June to the lowest level since January, 1935, and caused a surplus of medium and unfinished lambs on the market. Lamb prices consequently declined about '/,2 for the month to a level which was f,1 to f,1.15 below that at the close of last December and f,2.60 below the six-year peak of f,12.35 reached in April of this year. Sheep prices showed the usual late spring decline as old, unproductive ewes were culled from flocks and marketed. All live stock values weakened somewhat the forepart of July. THE ESTIMATED PRODUCTION AND ACREAGE, HARVESTED OR REMAINING FOR HARVEST, OF CROPS IN THE UNITED STATES AND THE SEVEN STATES OF THIS DISTRICT, AS ESTIMATED BY THE UNITED STATES DEPARTMENT OF AGRICULTURE, JULY 1 In thousands of units, ooo omitted AcllEAOE FOlt. HAR.VEST SEVEN STATES UNITED STATES All wheat, bu ............................. Winter wheat, bu ..................... Spring wheat, bu, _ _ __ Corn, bu ...·-······························· Oats, bu,.·-··--- - - Barley, b....__ _ _ _ __ Rye,bu---····················· Flaxseed, b..__ __ Tame hay, ton...__ __ Wild hay, tons.·-··---Alfalfa hay, ton-.._ _ __ Clover and timothy, tons ........ White potatoes, b...__ __ Sweet potatoes, bu,.·--············ Dry beans, 100 lb. bags·--····· Sugar beets, short tons __ ........ Tobacco, lb _ _ _ _ __ Apples, b...__ _ _ _ __ Peaches, b...__ _ _ _ __ Pear•, b...__ _ _ _ _ __ July I 1936 20,393 19,516 877 22,801 6,931 1,672 584 52 8,131 4,639 3,719 1,932 364 37 588 296 6 Revised 1935 16,306 15,320 986 19,938 7,151 1,509 653 68 7,617 4,789 3,697 1,568 389 39 637 231 4 July I 1936 51,059 37,875 13,184 98,517 34,440 8,827 3,015 1,698 56,341 n,563 14,333 22,425 3,217 890 1,732 819 1,472 Revised 1935 51,348 33,353 17,995 95,333 39,924 12,243 4,196 2,014 53,672 12,300 13,781 20,230 3,551 970 1,843 763 1,437 PRODUCTION SEVEN STATES Indicated Harvested 5-Yr.Av. July 1, 1936 1935 1928-1932 245,523 172,159 334,II2 236,866 163,053 324,6o6 8,657 9,106 9,5o6 380,899 260,533 575,646 u5,932 186,597 176,977 21,477 29,731 38,839 4,656 7,209 3,820 224 390 4o6 8,800 10,813 n,055 2 ,9 2 5 4,3 2 5 4,0 77 5,467 6,681 6,329 1,431 1,701 2,6o6 29,167 40,689 40,452 2,252 2,800 2,805 1,681 2,093 2,290 2,976 3,472 4,052 3,7 15 4,150 5,836 3,914 8,910 7,220 1,370 3,639 2,263 484 1,365 9¢ UNITED STATES Indicated Harvested 5-Yr.Av July 1, 1936 1935 1928-1932 638,399 623,444 863,564 512,085 464,203 622,252 126,314 159,241 241,312 2,244,834 2,291,629 2,553,424 805,420 1,196,668 1,215,102 164,866 282,226 281,237 26,380 58,928 38,212 9,468 14,123 15,996 [65,743 76,146 69,533 7,545 11,338 10,719 26,939 28,726 23,6o5 22,677 26,263 30,545 315,359 387,678 372,u5 63,806 83,198 66,368 II,685 13,799 II,858 8,819 7,908 8,118 1,n3,764 1,296,810 1,427,174 103,214 167,28j 161,333 41,26o 52,808 56,451 23,264 22,035 23,146 THE MoN.THLY REvrnw 6 Kansas CitY·-- --······· Omaha........................ St. Joseph.................. Denver_ _ __ Oklahoma City......... . Wichita...................... ' Cattle 81,262 128,626 24,465 2 7,3 2 5 37,815 16,126 JUNE MOVEMENT OF LIVE STOCK IN THE TENTH DISTRICT RECEIPTS STOC~EJlS AND FEEDERS Sheep Calves Hogs Sheep Cattle Calves Hogs 27,666 19,271 •141,332 102,673 21,023 3,217 3,618 7,520 140,288 91,549 n,500 1,248 1,020 14,679 5,914 57,6C)O . 62,619 2,651 296 814 4,001 32,665 154,043 3,107 1,184 129 12,086 26,214 14,398 3,840 19,856 12,648 PURCHASED FOR SLAUGHTER Cattle 46,052 82,00I 18,403 15,279 26,855 8,464 June 1936,_ _ _ _ 315,619 52,632 418,045 437,930 38,281 5,945 5,581 53,CJ04 197,054 May 1936,_ _ _ _ 275,356 46,952 36o,9n 574,470 42,618 7,249 4,787 · 100,498 168,669 June 1935·---············· 238,912 44,482 257,434 532,265 33,858 6,515 6,108 28,396 146,015 Six months 1936........ 1,920,:n5 318,424 2,6o8,440 3,343,018 314,074 38,945 25,235 302,565 1,149,128 tSix months 1935...... 1,871,989 364,805 2,185,542 3,517,839 386,075 69,861 36,803 247,799 983,503 •Includes 93,084 hogs shipped direct to packers' yards. tReceipts include Government purchases of cattle and calves. STOCKERS AND FEEDERS: The countryward movement of stocker and feeder cattle, calves, and sheep from four markets in the District declined during June, while shipments of hogs, although but half the average volume for the month during the past ten years, showed an increase. June shipments of cattle represented 86.4, calves 100, and ·sheep 93.1 per cent of the average. Shipments of cattle and sheep were heavier than a year ago, but sheep was the only species to show an increase for the first half of 1936 over shipments for the first half of 1935. The outward movement of cattle dming the six-month period represented 82.6, calves 86.7, hogs 35.7, and sheep 77.9 per cent of the ten-year average. · PIG CROP REPORT: An increase of 40.2 per cent in the spring pig crop and prospective increases of 4.6 per cent in the number of sows to farrow in the fall and of 24.1 per cent in total farrowings for 1936 as compared to last year were indicated for this District by the June 1 survey of the Department of Agriculture. Production, however, was still substantially below the average for the years 1932 and 1933. In the United States, the spring crop increased 29.4 per cent, with fall farrowings expected to increase 14.4 per cent and total farrowings for the year 23.9 per cent compared to 1935. The number of pigs saved and sows farrowed or to be farrowed, reported by the Department of Agriculture, in thousands of head: Colorado·---······· Kansas.....•.......... Missouri .............. Nebraska__ ........ New Mexico...__. Oklahoma__... Wyoming-····-·· Prns SAVED Spring Fall 1936 1 935 1935 1934 220 130 127 134 1,152 836 362 CJ08 2,120 1,763 1,517 1,123 510 3,033 1,945 947 28 38 49 33 486 700 376 53 2 10 JI IJ 54 Sows FARROWED Fall Spring 1936 1935 •1936 1935 22 24 38 24 182 135 151 151 265 252 336 275 173 165 508 328 6 7 7 9 .IOI II8 84 92 6 2 2 9 - - - - - - -- -- -- --- -- Seven states.___ 7,328 5,228 United States.__. 41,884 32,380 4,082 2,739 1,200 858 723 691 22,694 17,o68 7,028 5,385 4,310 3,766 •Number indicated to farrow from breeding intentions reports. The marked improvement in ranges and pastures during May was followed by deterioration during June because of hot, dry weather and damage from grasshoppers. Ranges in western Nebraska declined 13, western Kansas 6, Colorado 5, Oklahoma 12, and New Mexico 2 condition points between June I and July 1, while in Wyoming, where; ranges had declined 16 points in May, there was a further decrease of 8 points. Range feed was reported good in the mountain areas in the District and in the Sandhills of Nebraska, but severe drought conditions prevailed in Wyoming and there was a serious shortage of moisture in the central and southern Great Plains areas. Cattle and sheep, however, were generally in-good condition on July 1 except in the extremely dry areas. There was a heavy movemen t of cattle from· the drought section of Wyoming and a few had been moved from sections Qf Kansas and Oklahoma. Calves Hogs 17,289 6,086 5,615 2,868 8,671 3,932 •128,277 I 19,762 53,888 24,052 22,730 18,151 Sheep 69,221 69,079 58,166 26,551 12,798 12,116 44,461 366,86o 247,931 312,247 253,305 34,245 220,196 282,995 36,298 256,480 2,198,434 1,813,642 276,988 1,807,697 1,970,030 Contracting of lambs was active during June. Shearing was about completed in the District by July I and the new domestic clip has moved out of growers' hands very rapidly during the past two months. Meat Packing Operations at meat packing establishments in the District, as reflected by packers' purchases of live stock at the six principal market centers, direct shipments of hogs included, were somewhat heavier during June in the beef, veal, and swine divisions than in May or in June of last year, while sheep slaughter declined. Purchases for the first six months of 1936 indicated an increase in the slaughter of cattle and hogs and a decrease in the slaughter of calves and sheep. The slaughter of cattle during June and during the six months equaled the average for those periods during the past ten years and calf slaughter exceeded the average by about 13 per cent. Hog slaughter, however, was only about half and sheep slaughter about three-fourths of the average volume. The national totals of Federally inspected commercial live stock slaughter in June showed increases for all species compared to May and for all species except sheep compared to June of last year. The June slaughter of cattle, calves, and sheep exceeded the ten-year average by 16.8, 20.2, and 1.7 per cent, respectively, while hog slaughter was 23.3 per cent below the average. During the first half of 1936, cattle and hog slaughter increased moderately and calf slaughter increased slightly, but sheep slaughter was slightly below that for the first half of 1935. Live stock slaughtered under Federal meat inspection in the United States, reported by the Bureau of Agricultural Economics from compilations of the Bureau of Animal Industry: June 1936._ _ _ _ _ May 1936._ _ _ _ June 1935·--····················· Six months 1936.............. Six months 1935_............ NOTE: Slaughter for Cattle Calves Hogs 853,229 517,019 2,758,585 785,516 502,933 2,579,414 669,257 439,134 1,828,279 4,861,703 2,897,309 16,26o,874 4,229,177 2,793,171 13,792,779 Government relief purposes excluded. Sheep 1,308,683 1,212,725 1,420,685 8,016,151 8,343,8¢ Cold Storage Holdings United States cold storage stocks of beef, pork, and lamb and mutton declined and stocks of lard, eggs, butter, and cheese accumulated seasonally during June. An increase in holdings of poultry and a decrease in holdings of miscellaneous meats were contrary to the seasonal trend. Net withdrawals of beef and lamb were somewhat greater and of pork somewhat smaller than normal for June, while the into-storage movement of lard, butter, and cheese was below the usual amount although holdings of lard and cheese on July 1 were above a year ago. Storage stocks of beef were 2.6, pork 35.3, lamb and mutton 39.8, miscellaneous meats 7.8, lard 24.9, cased eggs 15.5, and butter 16.3 per cent below the July I five-year average, but inventories of poultry were 8.6, frozen eggs 3.5, and cheese 8.5 per cent above the average. 7 THE MONTHLY REVIEW United States cold storage holdings reported by the Bureau of Agricultural Economics, in thousands of units: *July I June I 1936 1936 Beef, lbs.·--··································· 41,225 51,134 Por~, lbs ....................................._ 431,292 440,618 Lamb and mutton, lbs............... 1,123 1,282 Poultry, lbs................................... 42,918 41,9'2 6 .. *Turkeys, lbs................................. 12,603 12,381 Miscellaneous meats, lbs.·-·-······· 56,979 57,435 Lard, lbs....................................... 106,892 99,656 Eggs, cases.................................... 7,061 5,707 Eggs, frozen (case equivalent)_ 3,198 2,686 Butter, creamery, lbs._ _ _ 74,683 21,157 Cheese, all varieties, lbs ......... -.. 85,781 70,783 *Subject to revision. **Included in Poultry. July 1 1 935 55,653 445,3°7 2,376 47,051 13,851 52,697 84,680 7,595 3,084 96,39 2 75,2 9 1 July I 5-Yr.Av. 42,344 666,677 1,866 39,5t6 7,974 61,795 142,398 8,354 3,09 1 89,272 79,097 Coal Bituminous coal production in the District increased 2.1 per cent from May to June but was 12.3 per cent below production in June, 1935. During the first six months of the year, production increased I 5.9 per cent compared to the first six months of 1935, with all states sharing in this increase. Bituminous coal production in the District, reported by the Bureau of Mines, in tons: Colo............... Kans. & Mo. N.M ............. Okla ..-........... Wyo............... *June 1936 290,000 342,000 107,000 56,000 309,000 May 1936 284,000 342,000 99,000 38,000 318,000 June 1935 304,000 416,000 103,000 58,000 378,000 Six Months 1935 *1936 3,104,000 2,568,000 3,298,000 3,008,000 658,000 738,000 851,000 555,000 2,665,000 2,409,000 Six states...... 1,104,000 1,081,000 1,259,000 10,656,000 9,198,000 U. S·-·········-· 29,415,000 28,541,000 30,117,000 200,212,000 189,223,000 *June estimated from the weekly reports of the United States Bureau of Mines. June were at the highest level in five years and field operations continued active. Completed wells in the District for the current year to July 4 totaled 2,376 compared to 1,722 during the same period of last year. The gross production of crude petroleum, estimated from the weekly reports of the American Petroleum Institute for June, I 936, and officially reported by the Bureau of Mines for all previous months: Oklahoma.-... Kansas __ ...... Wyoming_ .... Colorado..•--· New Mexico June 1936 Barrels 16,493,000 4,378,000 1:105,000 142,000 2,191,000 TotaL_·······- 24,309,000 United States 88,617,000 May 1936 Barrels 17,842,000 4,823,000 1,101,000 142,000 2,331,000 --- 26,239,000 93,739,000 Barrels 15,528,000 4,6o7,ooo 1,2o6,ooo n5,ooo 1,680,000 6 Mos. 1936 6 Mos. 1935 Barrels Barrels 99,400,000 91,990,000 27,403,000 27,137,000 6,516,000 6,585,000 8::0,000 773,000 12,56o,ooo 9,720,000 23,136,000 146,768,000 136,136,000 82,338,000 534,343,000 476,185,000 Zinc and Lead Shipments of zinc ore from Tri-State mines and tailing mills declined further during the four weeks ended June 27 while deliveries of lead ore showed a slight further increase. Production declined somewhat during the four weeks but surplus stocks of zinc in bins at the middle of June were at the highest level since the opening week of 1933. Shipments continued well above a year ago when operations were being resumed following a strike of mine, mill, and smelter workers and for the first half of 1936 showed increases of 36.8 per cent in zinc shipments and 55.1 per cent in lead shipments over the first half of 1935 despite severe winter weather early this year and recent declines in demand. The tonnage and value of zinc ore and lead ore shipments from the Tri-State district: Petroleum Crude oil production in the District declined 7.4 per cent from May to June, reflecting in part the effort of states in the Interstate Oil Compact to reduce production to a level below that of demand in order to reduce stocks and avert a reduction in crude prices. June production was equal to the average for that month during the past ten years and exceeded the output in June, 1935, by 5.1 per cent. The daily average flow totaled 810,300 barrels in June, 846,500 barrels in May, and 771,200 barrels a year ago. Production for the first half of 1936 increased 7.8 per cent compared to the first half of 1935. 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. This is an increase of 10 cents over the price level prevailing in 1935. Refinery operations during June 1935 ZINC ORE Oklahoma·--····································· Kansas.............................................. Missouri ...· - - - -···················· Tons Value 15,770 $ 504,640 10,746 343,872 2,904 92,928 4 Weeks ended June 27, 1936.___ 4 Weeks ended May 30, 1936.-... 4 Weeks ended June 29, 1935--··· 29,420 31,330 22,876 26 Weeks ended June 27, 1936·-··· 221,040 26 Weeks ended June 29, 1935·-··· 161,591 $ 941,440 1,002,56o 629,358 7,071,680 4,227,965 LEAD Tons 2,307 f, 9o5 288 Out Value 5,350 45, 2 50 14,400 I I 3,500 t, 175,000 3,430 171,500 878 33,796 25,189 1,237,050 16,244 567,232 Prices at the Joplin market were unchanged during the four weeks at $32 per ton for zinc and $50 per ton for lead compared to $28 and $40, respectively, at the close of June last year. During the first half of 1936, zinc prices averaged $32 per ton and lead prices $49.07 per ton compared to an average of $26.22 for zinc and $35.38 for lead during the first half of 1935. National Summary of Business Conditions By the Board of Governors of the Federal Reserve System Volume of production, employment, and trade was sustained in June at the May level, although usually there is a decline at this season. Wholesale prices of commodities advanced between the middle of May and the third week of July, reflecting in part the effects of the drought. PRODUCTION AND EMPLOYME T: The Board's seasonally adjusted index of industrial production increased from 101 per cent of the 1923-25 average in May to 103 per cent in June. Steel production continued at about 70 per cent of capacity in June and the first three weeks of July, although a considerable decline is usual at this season. Output of automobiles declined seasonally. The cut of lumber showed a seasonal rise in June following a substantial increase in the preceding month. Production increased at woolen mills and was sustained at cotton mills where a decline is usual in June. Output of foods increased. Factory employment and payrolls showed a slight increase between the middle of May and the middle of June, contrary THE MONTHLY R EVIE W to seasonal tendency. Steel mills and plants producing machinery employed more workers, and at automobile factories there was Jess than the seasonal decline. At textile mills employment was unchanged, although a decline is usual in June, while the clothing industries reported a decrease in the number employed. Total value of construction contracts awarded, as reported PERCENT 140 ,-----..-- ~ -- ......----,,---- ~ - - ~- - . - -- INDUSTRIAL PRODUCTION 130 l--- - + ---+-- - +---t--- PER CENT --, 140 -+---+--- -+-----1 130 COMMODITY PRICES: The general level of wholesale commodity prices, as measured by the index of the Bureau of Labor Statistics, advanced by about 3 per cent between the middle of May and the third week of July, following a decline of about the same amount earlier in the year. Prices of wheat, flour, feed grains, and dairy products advanced sharply, owing primarily to the drought, and there were increases also in the PER CE NT PE R CE NT 120 120 WHOLESALE PRICES 110 110 100 100 120 tto 100 90 90 80 ~~ ~ 80 90 ~ 70 60 1 - - - + - -- + - - -+-~J--1-9-- - - + - - - + - - - - + - - - f 60· 50 .,__,_ _.__ _ ---'-_ _ ....,__ _ .___ _.__ _ 1929 1930 1931 1932 1933 1934 ....;L-_ _ 1935 _.__-vv,,, 50 AA. l~~I 70 60 ~ ~ --- .... 80 70 60 50 50 1936 1929 1930 1931 1932 1933 1934 1935 1936 Index of physical volume of production, adjusted for seasonal vari ation, 1923-1925 average=-100. By months, January 1929 through June 1936. Index compiled by the United States Bureau of Labor Statistics, 1926=100. By months, 1929 to 1931; by weeks, 1932 to date. Latest figure is for week ending July 18, 1936. by the F. W. Dodge Corporation, increased somewhat from May to June and continued to be substantially larger than a year ago. There was a further increase in residential building. AGRICULTURE: Crop estimates by the Department of Agriculture on the basis of July I conditions indicated little change from last year for wheat and corn and considerable declines for oats, hay, potatoes, and tobacco. Since July I prospects have been reduced by extreme drought over wide areas. Cotton area in cultivation on July I was estimated by the Department of Agricu1ture at 30,600,000 acres compared prices of hogs and pork, cotton and cotton textiles, silk, rubber, ·copper, and finished steel. BANK CREDIT: Gold imports, which had been in large volume in May and June, declined in July. Funds held by the Treasury as cash and on deposit with Federal Reserve banks declined, as the result of disbursements in connection with the cashing of veterans' service bonds. Consequently reserve balances of member banks, which had declined in June, rose once more to their previous level. Total loans and investments of reporting member banks PER CENT PER CENT 120 120 FACTORY EMPLOYMENT 110 110 100 100 BILLIONS OF DOUARS 12 BILLIONS Of D0U..ARS 8 MEMBER BANK RESERVES AND RELATED ITEMS I 11 1-----+-----+------t 7 ',_/ 10 GoldSt°Y 9 90 .,V 90 8 80 7 I 3 Reserve Bonk ,,,, cred it 2 N~tie~~ri~k 80 70 70 ---- ·- -- ··- Currency 0 1929 1930 1931 1932 19~ 1934 1935 1936 Index of number employed, adjusted for seasonal variation, 1923.:1925 average ... 100. By months, January 1929 through June 1936. with 27,900,000 acres last year and an average of 41 ,400,000 acres in the years 192.8-1932. DISTRIBUTION: Freight-car loadings increased season: ally in June, and the distribution of commodities to consumers was maintained at the May level. In recent months ret ail trade as measured by sales of automobiles and by the volume of business of department, variety, and mail order stores has expande? considerably. 1934 1935 Wednesday figures. 1936 1934 1935 1936 January 31, 1934, through July 22, 1936. in leading cities, after increasing sharply at the end of May and the early part of June, declined somewhat in the four weeks ending July I 5, reflecting largely a reduction in loans to security brokers and dealers in New York City. Balances held for domestic banks increased by $800,000,000 during the period, as a consequence of redeposit with reporting banks of a considerable part of funds acquired by banks through Treasury disbursements.
@FedFRASER