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THE MONTHLY BULLETIN
Covering Conditions in the Tenth Federal Reserve District
FEDERAL l{ESERVE BANK OF KANSAS CITY
For the Information of Member Banks and Business Interests of this District
ASA E. RAMSAY, Chairman Board Directors
and Federal R,serve Agent
C. K. BOARDMAN, Assistant Federal Reserve Agent
and Secretary
0---------------------·------------------------a
Vol. 5
KANSAS CITY, MISSOURI, JUNE 25, 1920
HE tide of depression existing for a short time
recently seems to have ebbed to an appreciable extent, the reports on various lines of
business activity covering the month of May
indicating a tendency to settle down to a readjustment
on a firm and dependable basis.
It is recognized in this important producing district
of the United States that, while a slight improvement
is noted, the transportation facilities are lamentably inadequate for the marketing of the products of the
farms, ranges, mines, oil fields and factories, as well
as for a proper distribution of merchandise. And a.::i
a result there is an added strain to the already greatly
expanded credits, a slackening of industrial effort and
a prolongation of inflated prices on foods and commodities--conditions seriously affecting the economic
situation which, it is felt, should have been adjusted
months ago. Yet in the face of such deterring factors
there is an apparent determination of all interests to
"stay on the job" and to "see it through," a spirit
calculated to overcome seemingly insurmountable obstacles and to make the greatest difficulties seem trivialities.
This is the spirit which seems now to dominate all
interests that have to do with the production, distribution and sale, as well as financing, of the things
that are essential to the welfare of the American people. In no better nor more practical way has it been
expressed than in the annual J un.e convention at Colorado Springs of the National Wholesale Grocers Association, where the members-handlers of America's
food supplies-pledged themselves to encourage in every way possible increased production of foods and
necessary goods; and also, to make distribution more
sure, pledged their influence to the railroads to aid
in the financing of the building- of 25,000 new loco-·
motives and 250,000 cars needed to bring freight
equipments up to present and near-future requirements. In this, and in no other way, is it deemed
feasable to bring permanent relief to commercial and
industrial activity and prosperity to the American people from the present state of railroad transport, the
deplorable results of which are reflected in practically
every report on business conditions appearing in this
issue of the Monthly Bulletin.
While it is conceded that the peak of prices on practically all commodities has been passed, and that although declines are not being registered as rapidly as
the public desires, they will recede only as conditions
T
No. 6
become more settled and as production of a larger output of necessary goods is realized. Evidences that the
public is curbing to some extent its wasteful extravagances in spending, and that speculation and ill advised investment is on the wane, also are observed.
The industrial situation, according to the reports,
is somewhat easier than for several months. While
the sttpply of skil lccl labor is short i.n several localities
and in others it is ample in most line , there arc fewer
strikes and new wage demands. The big feature of
the situation at this time is the effort being put forth
to obtain sufficient help for harvesting the 1920 crop
of wheat which promises to be the third largest crop
in history. Generally the reports indicate that thi~
effort is proving successful, though in some localities
the high harvest wages are calling men from other
lines of productive employment.
FINANCIAL.
The demand for loans continues strong, with rate~
advancing. There appears to be, however, a gradual
elimination of loans for nonessentials and an effort toward 1iquidation of so-called frozen loans.
It is not expected that there will be any marked
reduction in the volume of loans until after harvest,
but it is hoped that the banks of this district will confine, so far as possible, their credit advances to the
needs of the agricultural and live stock interests.
The shortage of cars is still the disturbing factor in
the financial situation in this district, and indications
are that it will be impossible to move the remainder
of last year's crop before the harvesting of the new
crop. This places a heavy strain on the banking re-:ources, but if care is exercised in the granting of
credit, it is believed that ample funds will be forth -coming to care for the legitimate and necessary demands.
The statement of the condition of the .Federal Reserve Bank, including branches, as of June 18, 1920,
showed a ratio of total reserves to net deposit and
Federal Reserve notes liabilities combined was 40%.
The total gold reserves was $70,058,726.59, total earning assets were $134,561,263.24 and total gross deposits were $154,148,720.18. Bills discounted secured
by Government war obligations were $32,808,690.
Other bills discounted were $77,690,647.
Condition of Eighty-three Member Banks.
The combined reports of eighty-three selected member banks in this district as of June 4, appearing in
2
THE MONTHLY BULLETIN
this issue of the Monthly Bulletin, showed a small
increase in their holdings of U. S. securities and a reduction in the aggregate of their loans. Demand deposits on which reserve is computed were a little more
than $8,000,000 less than at the May 7 reporting, while
time deposits were slightly increased.
June 4, 1920 May 7, 1920
Total U. S. Securities ............ $ 54,113,000 $ 53,034,000
Loans secured by war obligations
(Liberty Bonds, Victory Notes,
Certificates of Indebt.)......... 19,549,000
19,143,000
Loans secured by stocks and bonds
other than U. S. Securities...... 79,185,000
79,944,000
All other loans and investments. . 458,048,000
462,399,000
Reserve Balance with Federal Reserve Bank . . . . . . . . . . . . . . . . . . . 42,628,000
50,258,000
Net demand deposits on which reserve is computed .............. 419,752,000
428,006,000
Time deposits . . . . . . . . . . . . . . . . . • 98,936,000
98,568,000
Bank Clearings, 25 Cities in the Tenth District
for May, 1920
Clearing at twenty-five cities in this district for May
were $26,617,499 m re than the April clearings in
twenty-four ities reporting, while at the same time
May clearings indicate an increase of approximately
$300,000,000 or 19% over the clearings for the same
month last year.
Pct.
May,1920
May,1919
Gain
Kansas City, Mo ......... $ 927,535,006 $ 884,600,051
4.6
Omaha, Neb ........... . 287,405,225
244,533,606
17.5
Denver, Colo. . ....•.... 151,891,276
142,141,533
6.8
St. Joseph, Mo .......... .
66,749,216
74,706,388 *10.6
Wichita, Kans. • ....... .
56,598,936
48,926,762
15.7
Oklahoma City, Okla.... .
53,926,557
47,144,620
12.2
Tulsa, Okla. . . . ....... .
53,482,697
51,284,359
4.3
Lincoln, Neb. . . . ...... .
24,045,956
22,523,474
6.7
Kansas City, Kans ...... .
19,821,796
3,066,882 546.3
Muskogee, Okla ........ .
17,092,708
11,519,397 48.3
Topeka, Kans. . . ....... .
14,425,680
12,964,338
11.3
Joplin, Mo............. .
7,850,695
7,142,671
9.7
Cheyenne, Wyoming . . .
7,488,974
Okmulgee, Okla. . . ..... .
6,722,003
3,789,419
77.4
Bartlesville, Okla..
4,945,140
4,231,582
16.9
Pueblo, Colo. . . ........ .
4,171,212
3,372,837 23.7
Colorado Spgs., Colo ..... .
4,139,282
3,874,522
6.9
Hastings, Neb ......... .
3,564,184
2,725,178
30.8
Atchison, Kans ........ .
3,540,548
2,651,100
33.5
Fremont, N eh. . ....... .
3,527,489
3,533,572
*.1
McAlester, Okla........ .
2,861,000
2,627,253
Guthrie, Okla. . . ....... .
1,368,666
91.9
Pittsburg, Kans..
2,480,125
1,774,446
39.8
Parsons, Kans. . ....... .
1,835,391
1,702,959
7.8
1,833,870
Lawrence, Kans. . . ..... .
1,709,557
7.2
Total ................. $1,882,403,495 $1,581,287,919
*Decrease.
19.0
MERCANTILE.
The mercantile trade through the month of May
and the first half of June exhibited a tendency, which
is not unusual, to slow down for the summer months,
although other factors have been and are till contributing to the unsettlement of trade conditions.
Wholesalers, particularly of dry goods, men's and
women's wear and millinery, report a tendency on the
part of retailers to buy carefully, with the result that
their sales as reported for May were 10%, and in some
instanc
much more than that, below the sales in
April, though in who! -al dry goods the May sales
were up to 50% larger than in the ame month la. t
year, and wholesale millinery sales about 5% larger
in volume than in May, 1919.
Wholesale furniture dealers and manufacturers in
this district report sales 20% better in May than in
April and 40% larger than at the same time last year.
Stocks are quite low, especially in the smaller towns,
and the supply and delivery of manufactured goods
has not yet caught up with the demands. Some retailers, however, report slightly decreased sales on account of high prices.
Drugs sold by wholesale houses in May were about
9% less than in April, but 18% larger than in May
of last year, with a prospect of a continuance of the
present volume of business at least until fall.
In the grocery line there is much more activity in
trade, May sales running about 11 % above those of
April and 24% above the sales of a year ago. Although wholesalers report retail dealers buying in
accord with their daily requirements, they assert that
speculative buying has been practically eliminated and
the outlook is good for at least six months.
Auto acce sories, pianos, phonographs, have apparently shown no great slump, the volume of sales being determined hy the supply in the hands of dealer .
... ales of typewriter·, considered as a fair index of htt iness activity, were 10% larger in May than in April
and 25 % larger than a year ago, according to reports.
The hardware business is said to be very good and
increases of 10% to 20% over last year's' business are
reported, although two or three extensive dealers reported sales in May were very much reduced on account of the inability to secure delivery of nails, sheet
iron, tin plate, etc., due to reduced production and
car shortage.
Harvesting and farm machinery has been in good
demand. Distributors say local dealers have no
trouble selling all the goods they are able to get to
their territory.
Vv all paper and paint ales have been remarkably
large. This i explained by dealers as due to the high
cost of building materials; the people renovating their
homes in anticipation of lower prices.
Department Stores' Reports.-May business is fairly well reflected by the reports to the Monthly Bulletin of large department stores in the principal cities
of the Tenth Federal Reserve District. The reports
of nine stores are combined in the following summary
of sales and stocks :
Net sales (selling price) during May, 1920, compared
with net sales for the same month in 1919 .... Inc. 11.42%
Net sales (selling price) during the first five months
of 1920 compared with net sales for the same five
months last year ............................ Inc. 21.24%
Stocks on hand at the cloRe of May, 1920, compared
with stocks on hand at the close of April, 1920.Dec. 5.92%
Percentage of average stock at close of each month
this year commencing with January to average
monthly net sales for the same period .......... 279.36%
Pe1·centage of outstanding orders for stocks (cost)
at the close of May, 1920, to total purchases during
the calendar year .............................. *6.64%
*Does not include stocks for fall delivery for one of the reporting stores.
The combined reports of nine dry goods stores show
an increase of 13% in May sales over tho e of April
and of 11.9% o er the .-ale of May, 1919. Stock on
hand at the close of May were 3.5% less than at the
clo e of April and 23.9% larger than at the close of
May la t. Outstanding orders for merchandise of the
stores reporting represented 23.9% of total purchases
THE MONTHLY BULL~'l'IH
during the calendar year. Some department stores,
dry goods stores and men's and women's' ready-towear stores have held clearance sales, due to the backward season and strained credits. In this way they
have reduced their stocks, particularly on unseasonable goods and such merchandise as they did not desire to carry over.
Mail Order Sales.-May sales of groceries increased
100% over the sales in April and 60% over the corresponding period last year, according to the report of
one large mail order house. Sales in many other commodity lines were especially heavy. To counteract the
usual slow trade in June, July and August the mail
order houses are now having their annual mid-summer sales, offering a large assortment of merchandise
on which prices are shaved to the limit, helping to
curb the high cost of living.
Collections.-While in some sections reports say
that on account of grain and farm products not moving to the markets collections are off, the general run
of the reports are that collections arc fair to good. In
the mountain sections wholesale grocers report an unusually high average of 101 % to outstandings.
Business Failures.-Dun's Review reports 16 commercial failures in the Tenth Federal Reserve District
in May, the total liabilities being $179,251. This compares with 28 failures and $703,255 liabilities in May,
1919.
AGRICULTURE.
The advent of June found conditions generally more
favorable for the growth of vegetation and for farm
operations than previously reported conditions seemed
to justify. The season at that time was ten days to
two weeks late, since in many parts of the district it
was too cool in May for the best results with warm
weather crops and in other sections the soil was too
wet to work satisfactorily. Yet under such conditions
progress was made. With plenty of moisture in the
soil in most sections, the weather warmed up and long
stretches of sunshine running through the month of
June, the situation as a whole in this district is such
as to give assurance of a much better than normal
crop of practically all of the farm products.
The 1920 Wheat Crop.-Winter wheat made remarkable improvement in May. The damp and cool
weather, while delaying the harvest season, seemingly
encouraged a sturdy growth of stalk and helped to
develop head and grain for the June warmth and sunshine to ripen. The harvest in the southern sections
was well under way at the date of issuing this Monthly Bulletin, while reports indicated fine progress
throughout the remainder of the Wheat Belt.
Pre-harvest estimates for the principal wheat growing states of the Tenth Federal Reserve District give
promise of a larger yield than was forecast at the
beginning of May. These June estimates, as reporte<l
by the secretaries of Agriculture for the states, place
the probable yield of winter wheat for this district at
approximately 215,000,000 bushels. This is 22,000,000
bushels more than the estimate made by the Bureau
of Crop Estimates based on May 1 conditions, and it
is 69,000,000 bushels or 24.3% below the final production figures, 284,000,000 bushels in 1919. While the
figures are to stand as the last official state estimates
before harvest, they may easily prove misleading as
to prospective yields, should the unusual growth of
stalk in many sections be produced at the expense of
the grain. The reports from growers, however, have
been carefully edited by the secretaries and due all0wance made for exaggeration and over statement.
A report for Kansas, issued May 20 by the Board
of Agriculture, estimated the prospective yield for that
state at 110,000,000 bushels of winter wheat on 7,603,880 acres as reported by correspondents. Should this
indicated yield be realized the 1920 crop would be the
third largest in the history of the state, the productions of 1914 and 1919 only exceeding it, while the
average annual production in the five year period,
1915-1919, amounted to 94,880,466 bushels.
The Nebraska crop report of June 1 condition of
winter wheat indicated a production of 50,896,000
bushels as compared to the final estimates for 1919 of
54,997,000.
The Oklahoma state Board of Agriculture reported
through its secretary an improvement during May in
the condition of wheat in that state, with indications
of a yield of approximately 35,000,000 bushels, which
compares with the U. S. Government's estimate May
1 of 27,000,000 bushels.
The reports for Colorado, Wyoming and Northern
New Mexico tell of excellent improvement in winter
wheat prospects with indications of a fine yield except
where damaged by heavy winds in April.
Spring Wheat.-Condition of Spring Wheat in this
district is reported as very fine, although there has
been a marked reduction in the acreage which is more
generally attributed to farm labor shortage than to
other causes. Nebraska's spring wheat area this year is 401,000 acres as against 668,000 acres in 1919. The
June 1 condition was 90% and this year's yield is estimated at 5,233,000 bushels. The June 1 condition of
24,000 acres of spring wheat in Kansas was 87.9% of
normal with an indicated yield of 11¼ bushels to the
acre. Colorado, W yarning and New Mexico report
good development of spring wheat and promise of a
yield above normal.
Advise Storing Grain.-The problem of taking care
of the 1920 wheat crop is engaging the attention of
the state agricultural departments in this district and
they are advising the storing of grain until the local
elevators can secure cars to handle it. L. A. Fritz,
professor of milling industry at the Kansas Agricultural College, says that owing to the high price of
material, scarcity of labor and limited time, it is unlikely that any large amount of permanent elevator or
granary storage will be provided on the farms this
year. Consequently most of the increase in storag~
facilities on the farm for the 1920 crop must be of
temporary nature such as proper stacking, especially
of bundle grain, rearranging or repairing of buildings
already on the farm, and possibly as a last resort, storing in bulk on the ground. He says:
"The farmer who stacks his grain well this year is
thereby able to hold it in good condition until the car
situation is somewhat improved and he is able to
market his surplus when threshed, will occupy an independent position as compared with the man who
threshes from the shock and is forced to market his
wheat immediately after harvest because he has no
suitable place to store it in bulk."
4
THE MONTHLY
John A. Whitehurst of the Oklahoma State Board
of Agriculture urges the building· of temporary elevators at shipping points to house the state's wheat
crop. He has written letters to all country councils
of defense urging their co-operation with the citizens
in a "save the grain" campaign. Facilities for storing
only 20% of the Oklahoma wheat crop are now available.
In
ebraska farmers are urged to prepare themselves to stack and store the wheat on the farm wherever po ·sible so that the elevator storage may not be
taxed to the limit at all times and that shipments of
wheat can be distributed over a larger period than has
been customary.
Harvest Help.-Fe<leral and state employment bureaus and agents in the cities are meetmg with fair
success in obtaining men for harvesting the 1920
wheat crop in this district. In Oklahoma it was estimated that about 10,000 men from outside of that state
would be needed to help the farmers, while estimates
as to the numl.>cr of harvest hands needed in J,.. ansas
varied from 25,000 lo 50,000 men. Ncbrasl·a will need
~nauy men from outsi~e but the harvest help problem
111 that state, and also m Colorado and Wyommg, will
be made easier by the fact that men who started at the
beginning of the harvest in Oklahoma and southern
Kansas will work northward and westward as the
grain ripens.
Efforts are being made to send men to the harvest
fields who have _had some experience in farm wo:k,
as many complaints have come from farmers of mefficient help. Prospective workers should be sure of
their endurance if they are to be of value either to
themselves or to the farmers.
Harv st wages in Oklahoma range from $4 to $7
a day, with stackers receiving $6 to $10 a day and
engineers and separator men $8 to $10 a day. Seventy
cents an hour is the maximum harvest wage in Kansas, board and lodging included.
Corn.-The end of May brought encouraging re.
ports. as to the progres~ of this year's corn crop.
Plantmg had been practically completed in the south
two-thirds of t_he district. Good progress in planting
was reported m the northwestern part of Missouri,
northwestern Kansas, northern Colorado and in N cbraska and vVyoming. The season was about two
~eeks late. Good stands and growth were reported
m Kansas and Oklahoma, although in the la t named
state ~orn s?ffered considerably in son1e ections by
exce_ss1ve rams, and much ~eplanting was necessary.
An increased corn acreage 1s reported in the district,
d_ue to the fact that the small grain acreage is considerably less than last year. The first official estimates on corn conditions and prospects will be made
in July.
Oats, Rye, Barley.-The acreage of oats is about
t~e. same as last year and reports indicate the condition at June 1 above 90% of normal with prospect·
of a yield slightly below t~at of 1919. Rye and barley
arc ~o~h reported a makrng good progre s, with the
cond1t1on of rye around 95% and of barley lightly
under 90%.
Cotton.-The condition of cotton at the last week
in May was 62.4% for the cotton growing states. This
BULLETIN
compares with 75.6% at May 25, 1919, and makes thi::year's mark the lowest in the record of fifty years.
Oklahoma, which is the largest producer of cotton in
the Tenth District, led all states of the union with a
condition of 70% of normal, which is 7.6% better than
the average for all other cotton states. Progress of
cotton has been slow this season on account of lack
of sunshine and too wet soil, but the stand and growing condition in Oklahoma averages to very good in
parts of the central and western counties in that state
Sugar Beets.-Conditions at the middle of June
w re very favorable to a substantial increase in sugar
beet production; not only in increased tonnage but
in increased percent of sugar content per ton, as compared with the production of 1919 which was seriously
affected by the dry weather in the mountain regions.
The Great Western Sugar Refining Company reported in June 281,000 acres of sugar beets under contract for its refineries in northern Colorado, western
cbraska and Wyoming. Thi compar s with 265,000
a ·r~s of be ·ts grown for that company in I< 19. The
l'. eptionally goo<l growing conditi n indicated a yield
well abo · the ten y 'ar average f tw lve tons to the
acre, and brought forth the announcement on the part
of the Great Western Company that its production of
refined sugar would be about 7,000,000 bags this year.
The American Beet Sugar Refining Company, the
Holly Sugar Refining Corporation and the National
Sugar Refining Company, all operating in this district, also reported an increased acreage of sugar beets
under contract amounting to 35% with a proportional
increased tonnage of beets in prospect.
Potatoes.-Growers in Colorado report 84,480 acres
devoted to potatoes in that state this year which is
about 94% o( last year's acreage. Kansas report ..
48,102 acres or about 13% below last year's' acr age.
The potato area in Nebraska i estimated at close to
100,000 acres, as compared with 115,000 acres la t
year, while Oklahoma's acreage is reported somewhat
below the 37,000 acres of last year. The late planting season, together with the high price of seed potatoes, are the factors which caused a reduction. The
condition of potatoes June 1, as reported, is around
86% in the Missouri Valley sections while in the
mountain states the condition was about 90%.
Fruits.-Commercial orchards vary as to condition
of growing fruit, accordingly as they were affected
by the winter's freezing and spring frosts. Reports
from the Missouri Valley region forecast 50% to 7510
of a normal crop. Fruit pro pects arc unusually
promising in the mountain regions.
Grain Movements.-May terminated Government
control of wheat, ended the minimum price guarantee
and restored the markets to private interests without
causing even a slight flurry at the market center:;.
Managing the movement and sale of wheat crops
without a speculative market, which seemed imposible up to the beginning of America's participation
in the war, was achieved by the Government with very
little friction and without excitcm nt. Speculative
trading will not be restored until the e ·changes shall
have worked out important plans for the regulation
of future operations.
Meanwhile the movement of grain is not likely to
be affected by the change. The one big problem is
THE
MONTHLY
that of obtaining cars in sufficient numbers to handle
the unmarketed portion of the wheat crop of 1919;
and it is regarded as certain that probably 25% of last
year's wheat crop in this district will still be in the
hands of farmers when the new 1920 wheat begins to
flow to the markets.
Receipts of wheat at the markets of this district
picked up considerably in May after the big April
slump which resulted from the railroad strike and
tie-up. At Kansas City May receipts of wheat were
4,025,000 bushels, as against 2,235,000 bush els received
in April and 820,800 bushels received in May, 1919.
This brought the total receipts of wheat for the eleven
months since last ha rvest to 87,792,600 bushels, which
compared with 52,179,950 bushels received in the corresponding eleven months following the 1918 harvest
Receipts at the other market centers of the district
for the eleven months period were in the same proportion as at Kansas City. May wheat receipts, however, arc regarded as small in omparison with what
they would have been had the railroads b •en equipped
with ars to move all wheat offered.
R ceipts of corn in May wcr ·mall and about the
same as in May, 1919, while the receipts of oats in
the same month were but little better than one-third
of the volume of receipts in May, 1919.
Prices.-The high prices reached by wheat at the
end of April were maintained through May, due to
demand for good milling wheat. No. 2 dark hard
wheat reached $3.05@3.18 in the second week of May
and at the end of the month sold at $2.95@3.02. The
top price for No. 1 hard wheat was $3.03@3.10, with
$2.92@2.97¼ at the close. No. 2 red wheat sold higher in the first week of the month, $2.95@3.13, and in
the last week it was $2.89@2.90.
Corn also showed strength during the month despite
efforts to break prices. 'l'he top price on No. 2 corn
was $2 in the week of May 21 and for the week ending June 4 it was $1.98. No. 2 mixed corn sold up
to $1.97 in the second week and up to $1.88¼ on June
4.
Oats brought big prices in May, the top for the four
weeks being $1.15, $1.20, $1.16 and $1.10 per bushel.
The latter figure stood as the top price for the week
of June 4.
Flour Milling.-The combined flour output of the
mills at Kansas City, Omaha and of 89 mills in Nebraska, Missouri, Oklahoma and Kansas in the four
weeks period, May 1-28, according to the Northwestern Miller reports, was 1,631,393 barrels. This compares with 1,532,003 barrels for the same period in
1919, the increase for the year being 1.9%. The figures for the four weeks period on milling operations
5
BULLETIN
follow:
May, 1920
4 Weeks
Kansas City . . . . . . . . . . . . . . . . . . . . 321,400
Omaha . . . . . . . . . . . . . . . . . . . . . . . . 64,945
Outside Mills . . ................ 1,245,048
May,1919
4 Weeks
303,900
88,976
1,139,128
Barrels Output . . . .............. 1,631,393
1,532,003
Flour prices advanced between May 1 and May 29,
in sympathy with the rise in wheat. The quotations
at Kansas City for the two dates were:
May 29
Patents .................... $14.25@14.75
Straights .................. 13.25@14.00
Clears ..................... 10.00@12.00
May 1
$14.00@14.60
13.10@13.40
8.60@11.90
The demand for flour at the beginning of June was
reported as about qual to the output of the mills,
\ 1th indications of a more active inquiry from the
east. Although there is a feeling that export demand
will liven up shortly, there appears to be little activity
at this time.
LIVE STOCK.
Pastures arc generally T 11 nt throughout the di·t rict, th' grazing land providing abundant food for
live s to 1- and meadows making fine progrcs ·. Som
reports, however, say that the movement of live stock
to pastures has been much less than normal in the
eastern sections where lands are largely used for field
crops, though it is about normal in the high prairie
sections. Indications on the whole are that there will
be much less stock on pastures this year than in many
years preceding. Live stock in all states is reported
as generally healthy and improving in condition, but
there was more or less dissatisfaction among growers
and feeders with May prices of swine and cattle.
Considerable interest is being shown ·n pure bred
tock and many pure bred hogs and cattle are being
introduced through the Boys and Girls Pig and Calf
Clubs in many places. liowcver, there is a noticeable
shortage in the spring pig crop, which in Kansas 1s
e timated and 72% of the crop for the spring of 1919.
The reduction i especially noticeable, says the Kanas report, in the eastern half of the state.
Reports from Colorado, Wyoming and New Mexico
at the end of May said that sheep were being moved
to summer ranges, lambing was general and the condition was rapidly improving.
Market Movements.-May receipts of live stock at
Kansas City, Omaha, St. Joseph, Denver, Wichita and
Oklahoma City were 29,520 car loads, as compared
with 25,875 car loads in April and 29,344 car loads in
May, 1919. Disturbed conditions was a big factor i~
reducing supplies of meat animals in April, while the
still crippled railroad facilities served to keep the May
marketings below requirements.
The receipts of all animals except sheep and horses
Receipts of Live Stock in May, 1920
Cattle
Kansas City . . . ............................ 120,671
Omaha .................................... 105,210
Denver .................................... 84,491
St. Joseph ....... ....... ................... 41,340
Oklahoma City . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,925
Wichita ................................... 16,340
Calves
16,122
3,826
4,471
4,142
2,636
Hogs
323,564
304,815
37,624
224,369
54,298
47,002
Sheep
162,610
103,002
53,873
44,634
610
9,896
Total May, 1920 ............. .. .............. 397,977
Total April, 1920 ............................ 347,760
Total May, 1919 ............................. 438,882
31,196
27,624
32,392
991,672
732,764
909,850
374,325
546,343
442,429
Horses & Mules
3,447
764
1,369
1,339
315
1,734
8,968
10,702
5,777
Cars
9,704
8,806
3,340
4,781
1,740
1,149
29,520
25,785
29,844
THE MONTHLY B ULLETIN
6
and mules were larger than in the previous month of
April. The supply of cattle and calves was less than
ia May of last year, however, the decrease of cattle
amounting to 9.3% and of calves 3.7%. Sheep marketed in May were less by 15.4% than was shown by
the records of the corresponding month in 1919. There
was a liberal increase of 81,822 hogs, or 8.9%, received
in May as compared with the receipts for May, 1919.
Horses and mules on the six markets in May were
55.2% larger than in the same month last year. The
receipts for May at each of the six markets of this
district are exhibited in detail in a table in this issue
of the Monthly Bulletin.
Prices.-Liberal receipts in the first week of May
caused a slump in prices and during the month the
trade was anything but encouraging to shippers, the
low price levels frequently bringing losses. Hog prices
showed slight fluctuations during May. Bulk sales
May 1 were at $14@14.S0 and on May 31 at $14@
14.35, the top price of the month 1 eing $15, on May
12. Sh ep and lambs were gen rally lower in May
under fairly liberal receipts for this time of the year
and slow demand.
Highe5t prices on live stock at Kansas City in May,
1920, and May, 1919, are here given:
May,1920
Steers . . . ........................... $13.90
Stockers . . . . . . . . . . . . . . . . . . .. . . . . . . . . 11.25
Feeders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12. 75
Cows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.00
Heifers . . . . . . . . . . . . . . . . . . • . . . . . . . • • . 14.00
Calves •....... . ..................... 13.50
Colorado Steers . . . . . . . . . . . . . . . . . . . . . 13.15
Colorado Stockers . . . . . . . . . . . • . . . . . • . 11. 75
Colorado Feeders . . . . . . . . . . . . . . . . . . . . 10.90
Hogs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.00
Sheep . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.50
Lambs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.25
Horses . . ........................... 300.00
Mules .............................. 420.00
May,1919
$17.50
15.50
15.50
14.50
16.00
14.75
17.50
14.00
16.00
21.10
17.00
19.85
300.00
395.00
Decreased supplies of fat cattle early in June
brought sharp advances on some grades of beef steers
and a steady upward trend of cattle. A slight upturn of hog prices was also noted early in June, with
average sales of hogs at Kansas City at $14.49, at
Omaha 14.17 and at Chicago at $14.56.
Packing Operations.-Purchases of animals for
slaughter in May as compared with purchases in May
of last year, were 14.3% larger on cattle, 4.9% less ou
calves, about the same on hogs and 19.6% less on
heep. The May purchases for slaughter at the sL·
markets were:
Kansas City . . ..........
Omaha ..
Denver ..
St. Joseph ..
Oklahoma City ..........
Wichita .
...............
...............
... .........
..............
Cattle Calves Hogs
Sheep
66,795 15,459 254,122 109,789
1,987 241,950
65,996
73,250
1,437
8,670
33,429
17,392
24,319
3,681 177,037
35,127
17,213
1,624
60,308
182
5,327
45,870
46
May, 1920 •....... . ...... 188,320
May, 1919 . . ............. 164,778
24,188
25,448
802,716
797,552
235,786
293,419
The dullness which characterized the wholesale
trade in fresh beef through May was broken in June
by advances in prices due to the scarcity of fat steers.
The w holesale prices on J une 8 were $2 higher than
on May 11 on the best grades of beef and 50c to $1
higher on the intermediate grades of beef. F resh lamb
was about $2 lower at the June date than at the May
date, while cuts of fresh pork were an average of $1
per hundred pounds under the May 11 prices. Further
advances in best grades of fresh beef were announced
on June 15 at Kansas City.
PETROLEUM.
Estimated production of crude oil in Kansas and
Oklahoma, based on the average daily runs reported
weekly from the several fields, totaled 11,346,000 barrels, or an average of 366,000 barrels daily for the
thirty-one days of May. These figures, however, an:
expected to fall considerably below the output when
officially reported. Official reports placed the April
production in Kansas and Oklahoma at 12,307,000
barrels or 410,233 barrels daily. Wyoming and Colorado are reported to have produced 1,311,000 barrels
in April.
Developments.-Larger activity in field operations
are reflected by the May reports which showed a total
of 1,277 new wells completed and 102,315 barrels daily
new production. The big gain in May was in Oklahoma fi Id where there was 33,190 ba.rr ls more daily
new production than was recorded for April of this
year. Kansas gained 2,051 barrels daily new production in May, over April, while Wyoming's' report
showed 290 barrels less daily new production thc!n in
April. The summary of development operations follows:
Completed
Wells
Kansas . . . ... .. . . . ••. 303
Oklahoma .. ... . . .. • . 958
Wyoming . . . . ·. . • . . . . . 16
May, 1920 .....• •... . . 1,277
April, 1920 . • . .•. . . •. 1,001
May, 1919 . . .. .. ..•.. 1,247
Brls. Daily
Rigs and
New Prod'n. Wells Drilling
12,485
485
2,163
89,035
795
562
102,315
67,364
66,021
3,190
3,149
2,414
Prices.-N o material changes in prices of crude oil
in this district were reported during the month of
May. All grades of Kansas and Oklahoma crude 011
on June 11 was quoted at $3.50 per barrel except
Healdton, which was $2.75 per barrel. Wyoming's
product was quoted at $3.10 per barrel for Torchlight,
Grass Creek, Greybull and Elk Basin, $2.75 for Rock
Creek, Big Muddy, Salt Creek and Pilot Butte, $3.05
for Land Creek, $2.05 for Mule Creek and $1.25 for
Lander.
MINING.
Conditions in Colorado metal mining industry at
the end of May did not appear quite as favorable as
they did a month or two previous to that time. A
shortage of labor was reported from practically aJl
the mining districts and appeared to be interfering
with production, particularly in Cripple Creek, Telluride and Ouray.
The drop in the price of silver was said to be cutting out the profit s of a good many of the smaller
operators, particularly in some cases where it occurred
simultaneously with the raise in smelting charges.
L ead and Zinc.- A review of the Joplin ore market,
covering operations in t he Missouri-K.1.n sas-Oklahoma
district, says : Shipments showed a decided reaction
for t he month of May as compared w ith the month of
April. The average shipment per week for the month
of April was 13,325 tons of zinc blende, while in May
the weekly shipments dropped to 9,703 tons. Cata..
7
THE MONTHLY BULLETIN
mine ores on the other hand reached 223 tons per
week as compared with 127 tons in April. This decrease in shipments was largely due to the inability
to secure cars and move the ores that were already
loaded on the sidings throughout the month of April.
This also had a very untoward effect on zinc ores
throughout the month. The market for zinc blende
ores ranged from $42.50 to $45.00 for the month of
May as compared with $42.50 to 52.50 $during the
month of April. Calamine ore prices remained practically stationary at $35.00 throughout the month,
$35.23 being the average price paid for the month
as compared with $38.44 in April. The aggregate
shipments for the month was 48,513 tons of blende
ores and 1,116 tons of calamine.
Lead shipments also declined slightly from the previous month, the average shipment for each week during May was 1, 959 tons as compared with 2,524 tons
during April. The price level dropped very materially, the month opening with a price of $110.00 for
80% grades and dropping the next week to $100.00,
at which price all sales were made during the month .
This brought the average price for the month down
to $102.34. This compares with $108.82 for April.
There were several elements that entered into the
district's industrial activity, the first one being a
series of storms which wrecked a very large number
of milling plants throughout the Oklahoma district .
These storms in several instances wrecked entire mills
and in other instances destroyed portions of plants,
such as derricks, elevators, smoke stacks and tailing
flumes, and isolated buildings. This wholesale wrecking naturally closed down plants from several days
to an indefinite period. There are as many as 20
mills idle at the end of the month as the result of
storm damage and shortage of mine carpenters, and
the high price to be paid for this class of labor is discouraging to many operators, taken in conjunction
with the low price paid for ore, and they prefer to
remain down rather than incur the expense of repairs
now.
In addition to the low price paid for ore there is
also a shortage of mine labor. The annual exodus
to the harvest fields of Kansas and the west is beginning or preparations are being made for such exodus. This means that many mines will have their
forces cut down from 10% to 20% and means the
closing- of properties which cannot keep their force5
up. The closing of these properties, however, is an
unmixed evil as there is in the bins of the ore producers a considerable stock of unsold ore as well as
a considerable stock of sold ore, both of which have a
"bearish" influence on the ore market. With the curtailment of ore production this surplus stock of ore in
the bins of the ore producers should be absorbed during the early summer months and the ore market
should reflect a better tone of activity in the later
summer and fall.
There is also some indication of a decrease in supply
cost of the district which may help the industry. The
announcement of a 5 to 10% cut in lumber is taken
as an omen of such reduction.
Coal.-Mining operations were materially increased
in the bituminous coal fields of this section in May,
and the output was correspondingly larger, thougl}
shipping was retarded by car shortage. Colorado reports showed 77.7% capacity operation. in May as
against 78.2% in April, but Kansas activity increased
from 44.8% in April to 62.5% in May. Missouri
showed 80.2% capacity operation against 70.4% in
April, while Oklahoma mines were operated in Ma.y
at 64.1 % of capacity as compared with 69% in April.
The reports for May showing causes of loss of operation, expressed in percentages, for each state, follow:
Colo.
Transportation Disability ... 11.5
Labor shortage . . . . . . . . . . . 0.8
Strikes . . . . . . . . . . . . . . . . . . 0.2
Mine Disability . . . . . . . . . . . 1.6
No market ............... 7.6
Total loss .•.............. 21.6
Kansas Missouri
9.1
2.3
5.4
2.2
4.3
0.3
14.9
9.9
1.7
4.2
35.4
18.9
Okla.
16.7
1.9
0.6
2.2
14.3
35.7
While the figures indicate that coal production is
approaching pre-war activity, lack of demand for
household heating is reported in practically all of the
states of this district. This is said to be partly due
to the reluctance of consumers to lay in supplies for
next fall and winter, although under present cost of
production no downward trend of prices is forecast.
BUILDING.
In the first five months of 1920, now passed, a tota]
of 9,258 permits were issued in cities of the Tenth
Federal Reserve District reporting to the Monthly
Bulletin. The estimated cost of the buildings permited was $39,967,160. Of this amount $32,861,541
or 82.2% was for new construction, leaving $7,105,819
as the investment in repairs and additions. These
figures compare with a total of 7,499 permits issued
in the same cities in the corresponding five months
of 1919, with an estimated cost for the buildings
amounting to $17,176,414, of which $14,555,193 was
for new construction and $3,669,211 was for repairs
and additions. The increase for the five months of
1920 was 125.8% on new construction, and 93.7% on
repairs and additions, and 132.6% on all buildings permitted.
Reports of building inspectors and superintendents
for the month of May show for the first time this
year a tendency toward a decline of building activity
resulting from several unfavorable factors, such as
labor troubles, high prices of materials, and transportation difficulties. While the May report for cities
of the district as a whole reflects an increase of 30.6%
in building activity over that of May, 1919, the showing is the poorest for any month of the present year.
There was a decline of 74 permits and $1,757,770.. estimated cost, or 20.6%, from the record for April of
this year. Decreased operations are shown in the reports from such cities as Denver, Oklahoma City, Okmulgee, Wichita, Lincoln, and Kansas City, Kansas,
which have reported subc;tantial increases over last
year in all previous months of 1920. The report for
May, 1920, and for May, 1919, folows:
8
THE MONTHLY BULLETIN
May,1920
May,1919
Permits Est. Cost Permits Est. Cost
Omaha ..
195 $1,948,040 22,1 $1,042,220
Kansas City, Mo. 414 1,082,755 494
883,665
Tulsa ........ . 168
712,175 242
663,736
Denver ...... . 398
678,950 366
928,180
Topeka .. . ... . 66
583,960
65
91,112
Okmulgee .... . 72
302,226
71
331,050
Okla. City . . . . 130
265,319 129
331,426
241,795 114
274,780
Wichita ...... . 187
Cheyenne . . . . . 22
225,200
23
34,250
Pueblo . . . . . . . 72
205,812
74
91,521
159,020
66
77,690
St. Joseph . . . . 57
Muskogee .... . 22
138,010
26
68,920
Lincoln ...... . 57
104,833
85
221,300
67,360
Kansas City, Ks. 42
61
107,080
51,161
Colo. Springs ... 95
61
32,373
Leavenworth • ..
3
6,000
3
6,000
Total . . ...... 1,990
$6,772,616 2,104
$5,186,301
Gain or
Loss
86.9%
22.6
7.3
-26.8
540.8
- 8.7
-19.9
-12.0
657.6
124.8
104.7
100.2
-52.6
-37.1
58.0
An analysis of the reports contained in this tabic
·hows that the average estimated cost per buildinit
permitted in these cities was only $3,403 in May as
compared with $4,132 in April, $3,894 in March and
$2,464 in May, 1919.
30.6%
Statement of Condition of
FEDER L RESERVE BANr OF KANSAS CITY
Including Branches
RESOURCES
t Close of Busine s
Jun 11, 1920 June 18, 1920
Gold Coin and Certificates ... $
Gold Settlement Fund F. R.
Board .................. .
Gold with F. R. Agent ...... .
Gold Redemption Fund ...... .
Gold with Foreign Agents ... .
Legal Tender notes, silver, etc.
Bills Discounted:
Secured by Govt. War Obligations ............ .
All Other ............. .
Bills Bought in open market ..
U. S. Govt. Bonds .......... .
U. S. Cert. of Indebtedness ..
Bank Premises . . .......... .
Uncollected Items and Other
Deductions from gross deposits •................
5% Redemption Fund Against
F. R. Bank Notes ....... .
All Other Resources ........ .
457,212.50 $
440,602.50
24,854,189.33
36,190,010.00
4,347,122.20
5,353,445.28
1,450,542.30
24,176,046.61
35,838,370.00
4,250,262.20
5,353,445.28
1,539,956.70
33,191,796.05
74,472,554.83
1,696,342.22
8,867,900.00
12,974,500.00
657,981.48
32,808,690.30
77,690,647.00
1,989,625.94
8,867,900.00
13,204,500.00
657,981.48
63,349,707.61
73,939,330.24
915,590.00
303,881.63
915,590.00
323,140.82
Total Resources . . . ..... $269,082,775.43 $281,995,989.07
LIABIT,ITIES
At Clm, of Bu ine s
June 11, 1920 June 18, 1920
Capital Paid In .............. $ 4,314,100.00 $ 4,311,100.00
Surplus ................... .
6,116,033.36
6,116,033.36
Governrnen t Deposits . . .... .
2,193,019.28
7,636,946.80
Due to Members, Res. Act... . 81,239,839.07
82,732,213.31
Other Deposits ............ .
2,928,866.37
3,397,764.13
Deferred Availability Items .. . 55,432,153.49
60,381,795.94
F. R. Notes in Actual Circulation .................. . 97,912,955.00
98,364,005.00
F. R. Bank Notes in Actual
Circulation . . ......... . 15,432,200.00
15,326,900.00
All Other Liabilities ........ .
3,513,608.86
3,729,230.53
Total Liabilities ........ $269,082,775.43 $281,995,989.07
OTHER 'l'OTALS
Total Gold Reserves ......... $ 71,201,979.31 $ 70,058,726.59
Total Earning Assets. . . . . . . . 131,203,093.10 134,561,263.24
Total Gross Deposits ......... 141,793,878.21 154,148,720.18
Contingent Liability as Endorser on Bills rediscounted with other Federal Reserve Banks . . . . . . . . . . .
9,779,000.00
11,144,000.00
Ratio of total Reserves to net
Deposit and F. R. notes
liabilities combined . . . . .
41.1 %
40.0%
Ratio of Gold Reserve to F. R.
Notes in actual circulation
after setting aside 35%
against net deposit liabilities . . . . . . . . . . . . . . . . . . .
44.6%
42.6%
CLEARINGS
Total Clearings for Week .... $226,726,359.74 $260,500,887.83
Total number of items handled
942,572
982,152
@FedFRASER