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MONTHLY
REVIEW
Agricultural and Business Conditions
TENTH FEDERAL RESERVE DISTRICT
VoL. 22,
o. 6
FEDERAL RESERVE BANK OF KANSAS CITY
JUNE I,
1937
Business in the Tenth Federal Reserve District
APRIL 1937
COMPARED WITH APRIL 1936
_._
_____ i._ ___ _
Denver•
COLO.
--•
--·-·
-••
-
40 30 20 10
•
:
·--------KANSA
:•
•
·--·-··--·-··-··-r-l--I
I
% INCREASE
10 20 30 40
% DECREASE
'
April was dry and declines
occurred in wheat prospects in
important sections. Parts of
the District received rains in
May, but the "dust bowl" regions are still dry.
Wheat prices tended lower,
but com and oats were higher.
Cattle prices were steady, while
sheep were lower. Prices of
other live stock were little
changed. Fann income is about
a third higher than last year,
due to higher prices of farm
products.
April department store sales
were 5 per cent above a year ago
despite the fact Easter was in
March this year. Production
of flour and petroleum was
abnormally large while cattle
and hog slaughter and coal production were low.
I
-7-
Trade
__ Wholesale Sales ....
__ Dept. Store Sales_
_ _ Corn _ _ __
____ oats _____
______ cattle_______
__ _ Sheep _ _ _
Comtruction
5B __Total Awards_
I
___ Cattle Slaughter....
__ Calf Slaughter __
__Hog
Slaughter__
.... Sheep Slaughter___
.... Crude Petroleum_
....Bituminous Coal._
Zinc Ore Shipments
17
Lead Ore Shipments
M i1cellaneoua
______ Rainfall .._ _
•Cash Farm Income
___ •Employment _____
_____ •Pay Rolls ______
•For pm·lous month
-• ••
-•
■
■
____ Calves ____
____ Hogs ____
•
-·
•
Marketing&
_____Wheat______
_______Flour____
-·
--·
■
____ Lumber Sales ___
Production
•
■
___ Life Ins. Sales __
?4 _ Value of Permits_ .
■
■
_.Demand Deposits ...
n, ···--·Res. Awards _____
••
■
__ Mem. Bk. Loans ,__
■
•
10 20 30 40
.._Mem. Bk. Invest. __
■
1•
--·
_,
_,
40 30 20 10
F. R . Bk. Clearings
I
Deposit.s and bank investments were smaller in April than
in March. Commercial loans
and member bank reserves were
appreciably larger.
Financial
% INCREASE
% DECREASE
........ Bank Debits ______
■
)(ANS.
I
BUSINES'S
INDICATORS
4 MOS. 1937
COMPARED WITH 4 MOS. 1936
■
■
I
■
t•
:,
.
■
,i
2
REVIEW OF AGRICULTURAL AND BUSINESS CONDITIONS
The principal items of the weekly condition statements of the Federal Reserve Bank of Kansas City and
branches:
Member Bank Operations
In the four-week period from April 7 to May 5, loans
and investments of fifty-one reporting banks in the
Change from
Tenth District continued to decline although at a much
May 6
April 7
May 6
1937
1937
1936
more moderate rate than in February or March. An
(In thousands of dollars)
increase in the volume of commercial loans was largely Total reserves .....·-··-·········--···-·-··----· 290,308
+9,685 +48,743
390
+200
+249
offset by a decrease in loans on securities. However, Bills discounted ............ ·-·····-·-···-····
86
-1
-47
purchased................-.............. .
in the case of investments, a further decrease in hold- Bills
683
-31
-260
Industrial advances ........... ·-·······-··134
-5
-456
ings of direct Government obligations and "other" Commit. to make indust. adv.._. __ .
124,128
+2,014
+7,284
Government securities·--·····
securities was offset only in small part by an increase U.S.
454,255 +12,610 +59,788
Total resources.. ·-············-·--··-···-·····
+576 +14,569
in holdings of obligations guaranteed by the Govern- F. R. notes in circulation............. . 160,930
241;606
+9,317 +68,100
Member bank reserve deposits ... .
ment.
Dollar volume of check collections through this bank
On May 1 the remaining half of the recent increase
in reserve requirements became effective. Reserve showed no change from March to April although usually
balances at this bank, which had declined somewhat there is a decline. So far this year dol1ar volume is 11
since early March, were built up rapidly during t he per cent ahead of a year ago.
Check collections through the Federal Reserve Bank
two weeks ended May 5, reaching a level slightly above
the previous high of March 10. The increase in reserve of Kansas City and branches:
balances was attended by a substantial decline in interAMOUNT
ITEMS
1937
1936
1937
1936
bank deposits while demand deposits also decreased.
(In thousands)
In view of the fact that reserve deposits of all member ApriL...·-··········-·-··
5,907 $1,069,304 $ 883,693
6,188
919,545
6,109
1,069,392
6,700
banks showed a greater gain than weekly reporting March·---·····--··-····
3,527,412
23,530
22,780
3,916,918
banks, it is apparent that smaller banks drew rather Four months....... .
heavily on correspondent balances. The volume of Bank Debits
member bank borrowings at this bank, while larger than
Following a somewhat greater than seasonal increase
early this year, has shown no appreciable change in conin March, debits to individual accounts by banks in
nection with the March 1 and May 1 increases in rereporting centers showed less than the usual seasonal
serve requirements, member banks evidently having met
decrease in April.
any deficiencies by t he sale of securities and by drawing
Debits to individual accounts by banks in thirty
on bank balances.
Tenth District cities:
The principal items of the consolidated weekly conChange from
Apr. 1937
Mar. 1937
Apr. 1936
dition statements of fifty-one reporting member banks:
Loans and investments- totaL .. _
Loans and discounts
Secured by stocks and bonds....
All other loans and discounts __.
Investments
U. S. Govt. direct obligations_.
Oblig. guar. by U. S. Govt .......
Other securities_··-·······················
Reserve with F. R. Bank.... ·-·······
Demand deposits-adjusted__······Time deposits ...........·-············-········
U.S. Government deposits. __ ··-····
Interbank deposits ···········-············
Change from
May 6
April 7
May 6
1937
1937
1936
(In thousands of dollars)
691,006
-2,647 +62,867
64,572
198,405
-670
+757
+5,269
+25,333
256,804
45,390
135,835
164,953
471,163
145,571
3,647
359,880
-1,178
+629
-2,085
+8,774
-5,980
-275
-1,742
-12,400
+19,561
+2,043
+10,661
+50,529
+37,820
+1,480
- 15,005
+5,049
Reserve Bank Operations
Incident to recent changes in the Government securities holdings of the Federal Reserve System, important
changes occurred in the portfolio of this bank. This
bank's participation in the System account was increased about 2 million dollars during the four-week
interval from April 7 to May 5. This increase reflected
an increase of 3 million in Government bonds, an increase of 1½ million in Treasury bills, and a decrease
of_2½ million in Treasury notes.
Albuquerque, N. M ...........
Atchison, Kans ................ _..
Bartlesville, Okla.·---·········
Casper, Wyo.········-·-······--···
Cheyenne, Wyo··-···-·········-·
Colorado Springs, Colo.....
Denver, Colo......·-·-·····-··---··
Emporia, Kans ..... ......-.. -... .
Enid, Okla....·-········-·······--·Fremont, Nebr.·---·-···-·······
Grand Junction, Colo...__....
Guthrie, Okla.·---·······-···-·-·
Hutchinson, Kans.·····--·--···Independence, Kans ... _...... .
Joplin, Mo.··················--··-···
Kansas City, Kans ...... ·----··
Kansas City, Mo.·-·········-···
Lawrence, Kans ..........·-··--···
Lincoln, Nebr.·---···-···········
Muskogee, Okla.·--·-······-····
Oklahoma City, Okla.··-·-···
Okmulgee, Okla.·-···-···-····-··
Omaha, Nebr.·-··········-··-·····
Pittsburg, Kans.·-······-···--·-·
Pueblo, Colo.·---·····-·····--····
Salina, Kans.·--·······-··--·····-·
St. Joseph, Mo.·---·-----··--···
Topeka, Kans ......... •····-······
Tulsa, Okla.·--·····-····-·········Wichita, Kans .................-...
District, 30 cities................
United States, 141 cities. ...
(In thousands of doliars)
14,418
+475
+3,310
3,529
-187
+543
27,624
- 3,681
+2,648
5,447
+267
+521
8,513
-425
+782
13,512
-6,789
-503
186,249
- 4,842
+39,815
3,482
+212
+308
10,651
+271
+2,366
2,666
- 138
-70
3,949
- 158
+1,006
1,773
-64
+ 182
13,754
+1,001
+3,933
2,992
+94
+581
10,524
-822
+1,336
14,937
+49
+2,295
335,244
+7,809
+52,634
3,500
-383
+450
28,183
-2,537
+1,623
7,981
- 274
+82
107,716
- 10,221
+12,286
2,683
-895
-291
159,716
- 3,305
+7,510
3,969
-514
+265
21,948
+2,759
+2,474
9,517
+83
+2,684
27,638
-1
+344
18,966
+ 1,607
+2,955
161,668
+2,753
+34,257
50,225
-1,750
+10,038
1,262,874
37,133,334
-19,606
-4,869,696
+186,264
+2,350,672
FEDERAL RESERVE BANK OF KANSAS CITY
Trade
Wholesale sales and collections, reported by the
Department of Commerce:
DEPARTMENT STORE SALES
Two important factors condition any comparison of
department store sales with a year ago~· first, Easter
occurred in March this year and in April last year; and,
second, retail prices have risen about 8 per cent during
the past year. There was a decline of about 5 per cent
in sales from March to April as was to be expected but,
notwithstanding the early date of Easter this year, the
value of April sales was about 5 per cent greater than
in April a year ago. However, in view of the rather
marked rise in prices, it is possible that the actual
volume of goods moving into consumers' hands was less
than in April of last year. Cool weather this spring has
had a retarding effect on sales, particularly style merchandise.
Stocks of merchandise increased about 2 per cent
during April and at the close of the month were about
13 per cent heavier than a year ago. Collections on
open accounts averaged 46.7 per cent of receivables in
April, 46.3 per cent in March, and 45. 7 per cent in
April of last year. Installment collections averaged
15.9 per cent in April, 15.8 per cent in March, and
16.3 per cent a year ago.
Department store sales and Rtocks in leading cities
of the District:
SALES
STOCKS
Apr. '37 4 Mos. '37
Apr. 30, '37
comp. to
No. of comp. to comp. to
Stores Apr. '36 4 Mos. '36 Mar.31,'37 Apr.30,'36
~ cent increase or decrease)
Denver.............. 4
+13.9
+11.3
+ 3.8
+19.4
Kansas City.... 4
-2.9
+6.7
- 1.8
+10.2
Oklahoma City 3
+0.9
+3.5
+2.7
+6.3
Omaha.............. 3
+1.1
+0.6
+1.0
+4.6
Tulsa................ 3
+4.4
+10.8
+ 1.8
+12.4
Wichita............ 3
+22.0
+12.6
Zero
+ 14.2
Other cities ...... 21
+3.7
+ 5.7
+4.2
+17.3
District·---·--···· 41
+5.4
+7.6
3
+1.9
+13.0
WHOLESALE SALES
The value of April sales of wholesalers exceeded that
SALES
No. of
Firms
Drugs................
Dry goods ........
Furniture..........
Groceries..........
Hardware.______ .
Paper................
All other lines..
6
3
4
9
6
3
12
Apr. '37 4 Mos. '37
COLLECTIONS*
Apr. Mar. Apr.
comp. to comp. to
Apr. '36 4 Mos. '36
1937 1937 1936
(Per cent change)
(Median percentages)
80.8 82.5 78.1
+3.7
+7.6
52.4 54.7 50.6
+26.8
+24.3
49.7 47.8 48.5
+27.6
+21.9
100.5 99.0 97.0
+9.5
+7.3
49.0 46.0 61.0
+1.2
+ 4.8
72.6 62.4 66.8
+21.8
+9.6
80.0 73.1 76.0
+15.0
+15.6
District·----··-·--· 43
+11.4
+10.7
73.3 73.3 69.2
*Amounts collected during month on receivables at beginning of
month.
Crops
Winter wheat prospects in the District declined by
about 8½ million bushels during April, principally as
a result of declines of 11 million bushels in Kansas and
2 million in Nebraska, offset in part by a gain of 5
million bushels in Oklahoma. The May 1 condition of
winter wheat indicated a crop about 80 million bushels
larger than a year ago but 13 ½ million bushels under
the average from 1928 to 1932. An acute moisture
shortage in the western third of Kansas, resulting in
considerable crop deterioration, continued in the first
three weeks of May.
Acreage and production of winter wheat, as estimated
by the Department of Agriculture on May 1:
PRODUCTION
ACREAGE
Colo .._...
Kans ... ..
Mo. _____ .
Nebr ... ..
N.M .... .
Okla. ___ .
Wyo ..__ .
7 States
u. s .. _...
Abandoned For harvest Harvested
1937 1936
1937
1936
(Per cent )
a,ooo acres)
826
455
40.0 62.0
13,549
10,452
18.0 26.6
3,116
2,086
8.0 7.6
29.0 15.4
3,157
2,938
246
125
40.0 65.3
4,449
3,440
18.0 29.0
55.0 80.0
1
108
57
20.0 26.7
11.1 24.3
25,451
47,410
Indic.
Final
1937
1936
(1,000 bushels)
9,664
5,915
162,588 120,198
42,066
31,290
42,620
45,539
2,460
750
51,164
27,520
1,080
613
19,553
311,642
231,725
37,608
654,295
519,013
of a year ago by about 11 per cent, or approximately
Following the rather i avorable moisture situation
the average rate of increase so far this year. Sales of through March, rainfall in April was much below normal.
dry goods, furniture and house furnishings, and paper This development, together with a continuation of unand paper products continued to show relatively the seasonably cool spring temperatures, was reflected in
greatest increases over last year. Total sales in April the backward condition of crops and pastures on May 1.
remained at the March level. Sales of drugs were 5 The unusually poor condition of pastures was due in
per cent and paper 7 per cent smaller in April than in part to lateness but especially to droughts, close grazMarch; sales of dry goods and furniture were 9 per ing, and winter killing in many areas. The moisture
cent larger; and sales of groceries and hardware were situation, however, still was much improved over that
virtually unchanged.
of a year ago because of above normal precipitation
Collections on the whole were made at about the earlier this year. Good rains were received in parts of
same rate in April as in March. The highest collection Wyoming, Nebraska, Kansas, and Oklahoma in the
percentage was shown by the groceries and foods group, first three weeks of May. Prospects for irrigation water
the median collection figure being 100.5 per cent. This continued favorable in Wyoming, Colorado, and New
indicates that customers of these firms took less than Mexico, the cool spring having retarded the run-off
from high mountain areas.
thirty days on the average to pay for their purchases.
0
4
REVIEW OF AGRICULTURAL AND BUSINESS CONDITIONS
Rainfall as reported by the United States Weather
Bureau:
COLORADO
Denver......................
Leadville..................
Pueblo......... ·- ········
Lamar·---·················
Garnett ....................
Sunbeam ..................
April 1937
4 Months 1937
Normal
Total
Normal
Total
~ i n c hes_)_
4.03
1.43
2.06
2.99
6.08
5.87
1.19
1.78
2.68
.84
1.31
2.39
3.43
1.65
.66
1.77
1.30
.21
.59
.75
2.42
.54
.95
2.53
KANSAS
Topeka.-...................
Iola............................
Concordia................
Salina........................
Wichita....................
Hays.-.......................
Dodge City..............
Elkhart. ___ ··-···········
Goodland._ ...............
1.76
3.39
.46
.21
.57
.38
.52
.28
.69
2.78
3.90
2.36
2.47
2.91
2.29
1.94
1.75
2.06
6.24
10.83
4.72
3.94
5.64
2.14
2.95
1.13
3.28
7.33
9.29
5.08
5.56
6.69
4.37
4.01
3.44
3.74
2.01
2.51
2.79
3.19
3.14
4.70
6.72
8.47
12.10
8,62
8,61
11.74
1.67
1.22
2.10
1.09
.61
1.09
.59
1.22
2.51
2.53
2.69
2.45
1.86
2.15
2.12
1.86
4.64
5.18
6.11
3.86
4.00
3.10
1.45
2.31
5.47
5.39
6.36
5.12
3.74
3.90
3.81
4.15
.22
.49
.06
1.70
1.00
.64
1.02
2.55
2.80
3.20
3.22
2.64
2.50
3.70
2.66
2.11
1.76
1.37
.66
4.13
4.58
3.29
3.88
3.10
3.26
2.49
10.36
12.86
5.14
8.68
4.03
3.59
3.90
10.72
12.74
7.57
9.07
6.40
7.10
6.60
1.59
1.86
2.68
1.24
1.99
1.96
2.06
1.92
4.42
5.16
4.59
5.39
4.07
4.71
4.44
4.63
MISSOURI
St. Joseph ................
Kansas City............
Joplin........................
NEBRASKA
Omaha......................
Lincoln._...................
Norfolk.---············ ...
Grand Island. __ ·······
McCook. ...................
North Platte............
Bridgeport................
Valentine..................
NEW MEXICO
Clayton.. ·- ..............
Santa Fe........._.......
Farmington..............
OKLAHOMA
Tulsa........................
McAlester................
Oklahoma CitY·-·····
Pauls Valley............
Hobart......................
Enid ..........................
Woodward. ...............
WYOMING
Cheyenne·-···············
Casper......................
Lander......................
Sheridan. __ ·-············
Spring farm work was backward in some sections
because of the cool weather. Seeding of oats was about
completed as far north as Nebraska by the middle of
April and planting of corn and grain sorghums was
going forward as rapidly as conditions permitted.
Potatoes, although planted late, were growing well.
Cotton planting had commenced in Oklahoma and by
the middle of May cutting of the first crop of alfalfa
was about to start in the southern part of the District.
Fruit crop prospects this year are good. ; Grasshoppers
were reported hatching in large numbers but as yet
have done little damage to crops.
Receipts of grain at five markets in the District:
Wheat
Hutchinson ........
Kansas City ......
Omaha................
St. Joseph ..........
Wichita ..............
466
2,101
408
96
576
April 1937..........
March 1937........
April 1936.. ........
4 Months 1937..
4 Months 1936..
3,637
4,832
2,896
16,171
14,994
Com
Oats
Rye Barley Kafir
(In thousands of bush~
3
4
59
126
8
800
206
98
457
704
35
3
16
128
92
8
1,397
2,087
5,054
7,713
14,971
1,002
1,391
848
5,007
4,379
43
69
66
129
232
239
92
277
431
911
66
57
93
282
455
Cash prices of wheat at the Kansas City market
declined during April and the forepart of May, losing
the gains recorded in February and March. Corn
prices advanced further in April but lost all of this
gain early in May as pastures became available.
Cash grain prices at the Kansas City market:
May 15 Apr. 30 Mar. 31 Apr. 30 Apr. 30
1935
1937
1937
1936
1937
N o.1 hd., dk. wheat, bu. $1.30 ½ $1.33½ $1.41¼ $ ~ $1.05
.91.½
No. 2 mixed corn, bu... 1.32
1.38
1.30 .½
.62
No. 2 white oats, bu..__ .55.½
.51
.56
.53½
.26
.71
No. 2 rye, bu................. 1.05
1.10
1.10
.51
.71
No. 2 barley, bu........... .82
.87
.90
.44
1.95
2.36
2.29
1.13
No. 2 white kafir, cwt. 2.46
Live Stock
MARKETINGS
Receipts of cattle, calves, and hogs at six markets
in the District declined somewhat in April while marketings of sheep increased. The increase in sheep receipts
reflected principally heavy marketings of shorn yearlings
and wethers from southwestern areas since the movement of fed lambs from the northern Colorado, Arkansas
Valley, and Scottsbluff feeding sections had begun to
slacken and was practically completed by early May.
Although larger than a year ago, marketings of sheep
were 18 per cent below the April average for the past
ten years. Cattle marketings were 11 per cent below
the average and hogs continued to arrive in less than
half the normal volume. Calf receipts were 20 per
cent above the average.
Live stock receipts at the six markets:
Denver..........................
Kansas City................
Oklahoma City............
Omaha ..........................
St. Joseph ...... - ...........
Wichita ........................
Cattle
36,071
96,417
37,865
76,703
23,365
31,738
Calves
4,820
19,904
9,642
10,057
7,516
6,496
Hogs
28,380
101,259
28,066
84,802
48,235
24,723
Sheep
197,253
157,871
7,970
145,141
119,865
14,480
642,580
315,465
58,435
615,040
68,908
374,933
633,369
387,192
54,977
254,921 1,549,425 2,352,767
218,840 1,829,484 2,330,618
Grain Marketing
~ril 1937 ....................
301,149
arch 1937..................
336,364
321,878
April 1936......·-···········
Four months 1937...... 1,237,104
Four months 1936...... 1,329,240
Market supplies of grains generally declined in April,
reflecting increased activity in spring farm work and
further decreases in farm reserves of grains. Receipts
of wheat represented but two-thirds and corn about
one-third of the April ten-year average volume.
Cattle values strengthened at the Kansas City market
duringJi.'A.pril while hog prices showed little change and
sheep and lamb prices closed somewhat lower. As in
March, no strictly prime finished heavyweight steers
PRICF.S
FEDERAL RESERVE BANK OF KANSAS CITY
were available, and the highest April cattle price was
far below a nominal quotation of from $15 to $16 for
animals of that description. The hog top, while lower
than a year ago, was higher than in any other April
since 1930, equaling the top price at that time. Increased receipts were a factor i~ the sheep and lamb
price decline, but prices still were at the highest April
level since 1929. During the forepart of May, hog
prices moved up sharply to the highest level of this
year and there was also an advance in lamb prices, but
cattle prices were barely steady to slightly lower.
Comparative top prices paid for full loads of live
stock at the Kansas City market:
Beef steers............................
Calves·---···························
Stocker cattle......................
Feeder cattle........................
Hogs·-····-······························
Apr. 1937 Mar. 1937
Apr. 1936
(In dollars per hundredweight)
13.50
14.50
9.75
10.00
10.00
9.00
8.76
9.25
8.50
11.16
10.00
8.86
10.20
10.35
10.56
12.76
12.75
12.35
13.00
13.75
12.35
10.50
11.50
10.00
5
below normal. However, moisture supplies were.._ good
in the remainder of Wyoming, in the western and mountain sections of Colorado, and in the high sections of
New Mexico and were generally ample in the eastern
parts of Nebraska, Kansas, and Oklahoma. While
ranges and pastures were late, cattle in these two areas
were generally in good condition and calf crop prospects were favorable, with good late lamb crop prospects in New Mexico and Colorado.
The spring movement of southwestern cattle to the
Osage pastures of Oklahoma and the Blue Stem pastures
of Kansas, while starting somewhat later than usual
because of the slow development of grass, apparently
had reached peak volume at about the usual time near
the close of April. Reports indicated the movement
was virtually completed by the middle of May.
Farm Income
March receipts from the sale of principal farm products were larger than a year ago in all states in the
District except Nebraska, where a considerable amount
STOCKERS AND FEEDERS
of liquidation of live stock has taken place since last
Although stimulated to some extent by growth of summer. Larger receipts from wheat in Kansas, from
pastures and other spring feeds, shipments of stocker potatoes in western states, and from cotton in Oklaand feeder cattle, calves, and hogs from four markets homa were contributory factors in these increases.
in the District were slightly less in April than in March. Including Government payments, total income in the
The countryward movement of sheep increased but fell seven states in March was 38 per cent greater and in
41 per cent below the April ten-year average while the first quarter of the year 19 per cent greater than a
shipments of hogs were less than one-third of the average year ago.
volume. Shipments of cattle were 4 per cent and calves
Cash farm income, estimated by the Department of
9 per cent below the average. Feed costs are high in Agriculture:
Live stock
Govt.
relation to prices of live stock and live stock products,
Total
and products payments
a situation which has been reflected in heavier live
(In thousands of dollars)
3,375
14,763
10,169
1,229
stock slaughter. High feed costs have also resulted in Colorado......... .
............. .
6,645
21,932
11,641
4,746
decreased milk production, which in Nebraska, Kansas, Kansas
Missouri._........ .
2,406
17,828
13,353
2,069
4,648
21,631
13,107
3,776
and Missouri on April 1 was below the record low of Nebraska......... .
· 1,713
New Mexico ....
276
1,107
330
two years earlier.
Oklahoma........
2,425
18,168
7,560
8,183
Wyoming._...... .
3,084
510
2,257
317
Stocker and feeder live stock shipments:
Fed lambs............................
New crop spring lambs ......
Sheep......·-····-----········--·······
Denver·-·······················
Kansas City................
Omaha..........................
St. Joseph ....................
Cattle
6,394
40,350
9,914
4,216
Calves
1,673
3,597
1,456
479
Hogs
249
1,730
1,179
484
April 1937....................
March 1987..................
April 1936....................
Four months 1937......
Four months 1936......
60,874
62,248
61,977
229,611
233,175
7,205
9,315
7,766
32,253
25,751
3,642
3,799
3,458
12,583
14,867
Sheep
4.956
11,740
13,329
10,113
- --
40,138
32,428
43,912
170,761
148,163
RANGES AND PASTURES
Ranges were late on May 1, growth of new feed having
been retarded by cold weather and deficient moisture
during April. Moisture continued short in northeastern Wyoming and over much of the Plains area
from western Nebraska southward. In that area, dust
storms have caused some damage to ranges and have
been hard on live stock. Cattle were generally thin and
have made slow gains and calf crop prospects were
Mar. 1937........
Feb. 193L.......
Mar. 1936........
3 Mos. 1937.__.
3 Mos. 1936.__.
19,185
16,941
10,675
56,262
38,167
59,184
46,336
57,897
165,685
179,078
20,650
11,665
3,089
40,955
3,389
99,019
74,942
71,661
262,802
220,634
The national index of prices received by farmers rose
2 points between the middle of March and the middle
of April to 130 per cent of the pre-war average. However, the ratio of prices received to prices paid by farmers
for all commodities remained unchanged at 97 per cent.
A year ago this ratio was 87 per cent.
Employment and Pay Rolls
Employment and pay rolls in the District as a whole
showed little change from the middle of March to the
middle of April. However, there was a gain of about
7 per cent in employment and of 12 per cent in aggregate weekly pay rolls as compared with a year ago.
REVIEW O}i1 AGRICULTURAL AND BUSINESS CONDITIONS
6
Employment and pay rolls, by states, reported by
the Department of Labor:
April 1937
per cent change from
March 1937
Employment
Pay Rolls
Colorado......................................................
- 0.4
- 0.1
Kansas..........................................................
- 0.7
+2.8
Missouri. _.....................................................
- 0.7
- 0.1
Nebraska......................................................
+1.2
+3.6
New Mexico.. ..............................................
+1.9
-3.4
Oklahoma.................................................... .
+3.0
+3.6
Wyoming·-···················································
-3.0
-15.2
Flour Milling
Volume of southwestern flour production was maintained in April at an unusually high level, milling
operations being increased to 73 per cent of capacity
from 69 per cent in March. Flour business was more
active in the third week of April, when the wheat
market declined, than in any other week this year, but
flour sales showed only moderate improvement for the
month. As ,Ja result of the rather high rate of mill
activity, thelf"backlog of orders on mills' books has been
reduced to about normal proportions. Shipping directions tended to slacken toward the end of the month.
Output of flour in April was 31 per cent greater than a
year ago when operations were 55 per cent of capacity.
Southwestern flour production, estimated from the
weekly reports of the Northwestern Miller:
April 1937
Atchison ................................
Kansas City........................
Salina....................................
Wichita ............................... .
Other cities......................... .
133,000
642,000
178,000
228,000
1,067,000
Change from
March 1937 April 1936
(In barrels)
+26,000
+15,000
+172,000
- 14,000
+ 26,000
+106,000
+17,000
+204,000
+28,000
TotaL.·-·······························
2,248,000
+46,000
+534,000
*United States.. ..................
5,363,000
-47,000
+266,000
*Represents about 60 per cent of total output in United States.
Flour prices at the Kansas City market declined during the forepart of April but later regained most of the
loss, while millfeeds closed sharply lower.
Declines of $4.50 a ton for zinc and $14.00 a ton for
lead during April reflected the unsettled condition of
domestic and foreign markets. At the close of the
month, zinc at $45.00 and lead at $70.00 per ton were
$4.50 and $25.00, respectively, below this year's high
point reached in March. However, zinc still was $13.00
and lead $20.00 higher than a year ago.
Petroleum
Daily average output of crude petroleum in the
District continued to increase in April, gross production
reaching a record high level for that month which was
19 per cent above a year ago and 29 per cent above the
April average during the past ten years. Field operations have been active, particularly in Kansas, and
current reports indicate a heavy drilling program in
prospect for spring and summer months.
Crude oil production, estimated from American
Petroleum Institute data and reports of the Bureau
of Mines:
APRIL 1937
Gross D.Av.
Colo.._...
K ans ....
N.M .....
Okla .......
Wyo.·-···
5 States
u. s.......
130
5,743
3,165
19,728
1,599
4.4
191.4
105.5
657.6
53.3
--- - -30,365 1,012.2
103,956 3,465.2
APRIL 1936
MARCH 1937
Gross D.Av.
Gross D.Av.
(In thousands of barrels-)5.3
159
142
4.6
163.6
4,908
6,030
194.5
69.6
2,088
3,162
102.0
574.2
17,226
20,173
650.8
36.8
1,104
50.5
1,564
- - - - --
31,071 1,002.4
106,724 3,442.7
-----25,485
849.5
90,479 3,016.0
The high level of production resulted in further
heavy runs to storage in Oklahoma and Kansas, where
stocks of crude petroleum rose from 119,616,000 barrels
on April 3 to 122,454,000 barrels on May 1. Stocks in
the Rocky Mountain area showed virtually no change.
With the approach of the season of heavy consumption,
there was less concern over gasoline stocks. Crude oil
prices were unchanged but prices of tractor fuels and
kerosene tended to weaken by early May because of
the delay in plowing operations.
Coal
Zinc and Lead
Zinc and lead shipments from the Tri-State district
of Oklahoma, Kansas, and Missouri declined in April,
zinc falling below a year ago. Demand for concentrates
was much less active than in March and output also
showed a tendency to level off.
Zinc and lead shipments, estimated from the weekly
reports of the Joplin News Herald:
ZINC ORE
Output of bituminous coal in the District during
April declined substantially from the unusually high
level reached in March. This decline in production
was a natural result of the previous accumulation of
stocks in anticipation of a possible strike at bituminous
coal mines on April 1.
Bituminous coal production, estimated from reports
of the Bureau of Mines:
Colorado............................. .
Kansas and Missouri... ...... .
New Mexico ..... .................. .
Oklahoma ........................... .
Wyoming............................. .
Change from
April 1937 March 1937 April 1936
(In tons)
-455,000
-114,000
312,000
-141,000
250,000
- 658,000
133,000
-64,000
+18,000
25,000
-110,000
-16,000
-96,000
309,000
-282,000
Six states..............................
United Stat es......................
1,029,000 -1,569,000
25,735,000 -25,580,000
LEAD ORE
Kansas............. .
Missouri ........... .
Oklahoma ........
Tons
Value
13,030 $ 570,967
3,772
164,926
25,037 1,094,149
Tons
Value
1,508 $ 108,066
487
35,290
3,803
274,812
April 1937....... .
March 1937......
April 1936. ......
4 Mos.193L ...
4 Mos.1936._ .. .
41,839 $1,830,042
45,484 2,029,127
42,924 1,372,479
163,069 6,701,419
153,665 4,915,647
5,798 $ 418,168
7,712
650,980
3,270
163,500
21,733. 1,672,290
17,391
848,625
-349,000
-4,717,000
FEDERAL RESERVE BANK OF KANSAS CITY
Meat Packing
Packers' purchases at the six principal markets in the
District indicated a decline in the slaughter of all classes
of live stock in April. Cattle and hog slaughter was
much lighter than a year ago, cattle falling 11 per cent
and hogs 52 per cent below the April ten-year average.
The slaughter of calves and sheep, however, was heavier
than a year ago, calves exceeding the average by 32
per cent but sheep falling 14 per cent below the average
volume.
Packers' purchases at the six markets:
Denver..........................
Kansas City.... ............
Oklahoma City............
Cattle
16,077
42,686
21,985
St. Joseph ....................
Wichita ........................
53,516
17,089
13,616
April 1937....................
March 1937..................
April 1936 ....................
Four months 1937......
Four months 1936......
188,694
186,397
712,970
783,405
Omaha ..........................
Calves
3,194
17,191
4,862
7,664
164,969
7,329
7,002
Hogs
26,851
93,835
21,565
73,092
46,333
23,756
Sheep
31,624
105,557
7,221
104,678
94,569
14,159
357,808
47,242
285,432
52,045
382,656
330,158
316,545
39,119
333,720
202,607 1,368,549 1,405,847
177,774 1,519,327 1,312,406
7
of 21 per cent in total awards for the first four months
of 1937 as compared with the same period in 1936.
The value of construction contracts awarded, reported
by the F. W. Dodge Corporation:
TENTH DISTRICT
Total
April 1937....
March 1937..
April 1936....
4 Mos.1937..
4 Mos.1936..
17,237
8,350
10,940
44,247
36,469
PERMITS
Albuquerque, N. M .......
Cheyenne, Wyo ...............
Colorado Springs, Colo.
Denver, Colo ...................
Hutchinson, Kans ...........
Joplin, Mo .......................
Kansas City, Kans .........
Kansas City, Mo.·--·-·····
Lincoln, Nebr.·---···········
Oklahoma City, Okla .....
Omaha, Nebr .. - ...............
Pueblo, Colo..-··--···········
Salina, Kans.·--···············
Shawnee, Okla .................
St. Joseph, Mo.·---·········
Topeka, Kans .................
Tulsa, Okla.·---···············
Wichit a, Kans .................
1937 1936
106 85
52
65
85
47
729
525
80
139
22
23
55
49
290
256
194 204
205 265
206 141
75
111
20
25
16
13
51
29
129
98
140
263
108
226
----
April. ................................. 2,827 2,300
March·--··························· 2,194 2,023
Four months.................... 7,102 5,980
ESTIMATED COST
1937
$ 265,000 $
302,000
125,000
1,004,000
47,000
28,000
79,000
499,000
138,000
472,000
774,000
56,000
34,000
9,000
23,000
1,036,000
767,000
281,000
1936
176,000
47,000
45,000
652,000
35,000
51,000
93,000
313,000
147,000
680,000
444,000
46,000
47,000
7,000
17,000
117,000
289,000
212,000
$ 5,939,000 $ 3,418,000
5,163,000
3,042,000
15,667,000 12,509,000
The value of construction contracts awarded in this
District in April was substantially larger than that in
the preceding month or in April of last year, reflecting
principally increases in awards for non-residential building. However, it was the increase in awards for residential building that accounted for most of an increase
Residential
108,013
90,168
67,151
339,591
191,031
Lumber
Board feet sales of lumber at reporting retail yards
in the District showed a further seasonal expansion in
April but continued below the level of a year ago, total
sales thus far this year showing a decline of 5 per cent.
Collections showed further improvement in April
averaging 43.1 per cent of outstandings at the beginning
of the month as compared with 41.9 per cent" in March
and -45.5 per cent in April of last year.
·
Lumber trade at 157 retail yards in•.the District:
Building
Spring building operations, as reflected by the number
and value of permits issued for new construction, alterations, and repairs in eighteeen cities of the District,
expanded further in April. The number of permits was
the largest for April since 1929 and their estimated
value the highest since 1930. Because of the substantial
March and April gains, building activity was about 25
per cent ahead of a year ago.
Building permits reported by the eighteen cities:
37 EASTERN STATES
Residential
Total
(In thousands of dollars)
4,237
269,934
3,889
231,246
2,460
234,806
14,176
932,540
7,843
780,678
Sales of lumber, board feet........................
Sales of all materials, dollars ....................
Stocks of lumber, board feet ................... .
Outstandings, dollars._ .............................. .
April 1937
per cent change from
March 1937 April 1936
+23.6
-3.2
+21.5
+15.0
-1.6
+11.0
+13.6
+21.0
Life Insurance
April sales of ordinary life insurance in the seven
states, all or parts of which comprise this District,
showed a gain of 14 per cent over a year ago. As a
result of this large increase, total sales for the first four
months of 1937 were raised to a".level about 5 per cent
above a year ago.
·
Life insurance sales reported by the Life Insurance
Sales Research · Bureau:
Colo............. .
Kans ............ .
Change from
April 1937 4 Mos. 1937 Apri! 1936 4 Mos. 1936
(Per cent)
(In thousands of dollars)
6,953
23,714
30,111
77,971
24,894
4,801
35,179
4,307
+19
+10
Nebr............ .
N.M ............ .
Okla.·---·······
Wyo.·--·········
8,764
21,654
6,370
1,305
9,442
1,289
+14
+19
Zero
+3
+16
+7
+3
+8
+4
+9
7 States_......
U. S· -···-·······
55,777
692,062
200,977
2,639,666
+14
+5
+16
+9
Mo.·-·············
-1
-4
Cold Storage Holdings
Although United States cold storage stocks of beef,
lamb and mutton, and poultry declined more than
seasonally and lard stocks declined contraseasonally
during April, the general level of cold storage stocks continued to be substantially above that of recent years.
Withdrawals of butter and cheese were smaller and the
in-movement of eggs larger than usual. Stocks of pork
increased contraseasonally.
8
REVIEW OF AGRICULTURAL AND BUSINESS CONDITIONS
NATIONAL SUMMARY OF BUSINESS CONDITIONS
By the Board of Governors of the Federal Reserve System
INDUSTRIAL PRODUCTION
PCRetHT
Industrial activity in April and the first half of May was maintained at the
relatively high level of recent months. The general level of wholesale commodity
prices declined somewhat, reflecting considerable reductions in prices of many
raw materials and semi-finished products.
PERCENT
140
140
130
130
A.
120
"I
\
r
/~
110
"'\ \/\
100
90
80
A
\
70
60
I\ I\
120
)V'
110
PRODUCTION, EMPLOYMENT, AND TRADE
100
The Board's seasonally adjusted index of industrial production in April continued at 118 per cent of the 1923-1925 average. Manufacturing production rose
further, reflecting increased output of durable goods. Activity at steel mills was
at a rate slightly higher than in March and about equal to that in the peak month
of 1929. Automobile production continued to expand. In the first three weeks
of May output in these industries was maintained at the levels reached at the close
of April. Increases in output in April were also reported for lumber and plate
glass. At textile mills where output has been at a high level in recent months
there was a slight reduction in activity.
At bituminous coal mines output declined sharply following an increase in
March, when consumers accumulated stocks of coal in anticipation of a strike.
Crude petroleum output, which had risen sharply from November to March, showed
further growth in April. Production of most metals also increased.
Value of construction contracts awarded, as reported by the F. W. Dodge
Corporation, increased more than seasonally from March to April and continued
higher than a year ago, reflecting, as in earlier months of the year, a larger volume
of residential building and of other privately-financed work. Contracts awarded
for publicly-financed construction have been considerably smaller in the first four
months of this year than in the corresponding period of 1936.
Employment rose further between the middle of March and the middle of
April.
There was a considerable growth in the number of persons employed in
manufacturing and on the railroads, little change in those employed in the public
utility industries and in trade, and a decline at bituminous coal mines. At factories
the principal increases in employment were reported by the steel, machinery, and
automobile industries, while the number employed in the clothing industry de. clined. Working forces at textile mills were maintained, although a decrease is
usual at this season. Factory pay rolls increased more than employment, reflecting chiefly further increases in wage rates.
In April sales at department stores showed little change and mail order sales
were also maintained at the March level, while sales at variety stores declined.
90
V
80
I\ V
\r-'1
70
60
V
50
50
1930
1929
1931
1932
1933
1934
1935
1936
1937
Index of physical volume of production, adjusted for seasonal variation, 1928-1925 average
100. By months, January, 1929, through
April, 1937.
=
FACTORY EMPLOYMENT AND PAYROLLS
PERCENT
120
100
9
r--->t;;;:--+--+---+--+-----+---l---~--l 100
oi-----iH~--+--t---t--+--..h4.J!-----l90
50t---+- - + - - - +
40
50
r----i--+--t---X-----l'\-l--+-----+--+--1----l 40
30
30
1929
I~
1931
1932
I~
1934
1935
1936
1937
Indexes of number employed and pay rolls,
without adjustment for seasonal variation, 19281926 average
100. By months, January,
1929, through April, 1987. Indexes compiled by
the United States Bureau of Labor Statistics.
=
COMMODITY PRICES
EXCESS RESERVES OF MEMBER BANKS
BILLIONS OF DOLLARS
BIL.LIONS Of' DOLLARS
4
4
The general level of wholesale commodity prices, as measured by the index of
the Bureau of Labor Statistics, declined from 88.3 per cent of the 1926 average
at the beginning of April to 86.9 in the middle of May. Prices of nonferrous metals,
steel scrap, cotton, and rubber declined considerably and there were also decreases
in the prices of grains, cotton goods, silk, hides, and chemicals, while prices of
shoes and clothing showed further small advances. Since the middle of May prices
of hogs and pork have advanced sharply and grain prices have also risen.
BANK CREDIT
0
1932
1933
1934
1935
1936
1937
Wednesday figures of estimated excess reserves for all member banks and for New York
City, January 6,- 1932, through May 19, 1987.
MEMBER BANK CREDIT
81..UONS aF D('U._ARS
91UIOOIS 0, DOI.UN
17
2,4
16
23
15
22
14
21
13
20
12
ti
11
10
Following upon the final increase in reserve requirements, which became effective on May 1, excess reserves of member banks declined from $1,600,000,000 to
about $900,000,000, and in the first three weeks of May fluctuated around the
new level.
Adjustments by banks to the new requirements were reflected in a decrease
in interbank balances and in a small increase in borrowings. The Federal Reserve
System in April purchased $96,000,000 of United States Government securities,
for the purpose of easing the adjustment to the new requirements and preserving orderly conditions in the money market.
Total loans and investments of reporting member banks showed a small decline
from the middle of April through May 19. Holdings of United States Government
obligations and other securities showed some decline, which was offset in part
by increases in loans.
While domestic interbank and United States Government deposits declined
further, balances of foreign banks and other demand and time deposits at reporting
member banks increased.
MONEY RATES
•34
1935
1936
1937
'34
1935
1936
1937
Wednesday figures for reporting member
banks in 101 leading cities, September 5, 1934,
through May 19, 1937.
The open-market rate on 90-day bankers' acceptances, which between January
and the latter part of March had advanced from 3/16 to 9/16 per cent, was reduced to 1/2 per cent on May 7, and the rate on nine-months Treasury bills declined to .62 per cent on May 24 compared with a high point of .74 per cent on
May 3. Other short-term rates have shown little change in recent weeks. Yields
on long-term Treasury and other high-grade bonds have declined somewhat.
@FedFRASER