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a THE MONTHLY REVIEW Covering Conditions in the Tenth Federal Reserve District FEDERAL RESERVE BANK OF KANSAS CITY For the Information of Member Banks and Business Interests of this District ASA E. RAMSAY, Chairman Board Directors and Federal Reserve Agent C. K. BOARDMAN, Assistant Federal Reserve Atent and Se~ret11ry D----------------------------------------------a VoL. 6 No. 6 Kansas City, Mo., June 25, 1921 THE SITUATION AT A GLANCE High points on conditions in the Tenth Federal Reserve District in J 11.ne are: Federal Reserve Bank loans reduced one-half from the high peak of November - Financial situation improved - Ample currency and credits for all legitimate needs. Harvest season now on, with estimated winter wheat crop for the district 215 to 235 million bushels - Other crops doing well under f av01·able weather conditions and abundant moisture. Heavy marketing of old wheat reduces farm reserve to about the usual normal supply - Flour milling in May slightly below last year. Continued heavy receipts of live stock - Meat packing improved with a large1· slaughter of cattle but fewer hogs and sheep as compared with this time last year. Crude oil production mounting high, with further reduction of prices, and drastic measures being taken to check the output. Lead and zinc mining improvement checked by decline in price of ores - Coal production lagging on account of "no market." Improvement in some lines of mercantile trade, other lines slow at readjustment. Liabilities involved in business failures in this district less than in any other Federal Reserve District. Increased building activity, particularly in residences, permits larger both in number and estimated cost than one year ago. N outstanding feature of the situation in this agricultural district at the 1921 harvest · season is th at loans by th e Federal Reserve Bank of Kansas City are less than one-half the total of November last when loans were at their highest peak, and marked reductions in loans by; member and non-member banks have also been made during the same period. As a result of deflations, which A THIS COPY RELEASED~FOR PUB• LICATION IN MORNING PAPERS JUNE 28 have proceeded steadily and in orderly fashion, finances in this district are in better condition than for many months past. Ample currency and credit are available for harvesting and crop movements as well as for all legitimate requirements. Improvement in the financial situation in this district is reflected by the weekly statements of the Federal Reserve Bank of Kansas City. On November 5, 1920, loans had reached the high mark of $163,387,000 and such was the demand for currency and credit at that time that the ba_n k was borrowing $41,877,649 from other Federal Reserve Banks to meet necessary requirements. In marked contrast from this state of highly inflated credits is the statement of the Federal Reserve Bank of Kansas City as of June 15, 1921, which shows a total of $76,863,151 of loans, a reduction of 53% from the total on November 5, 1920, and not a dollar borrowed from other Federal Reserve Banks. Besides, the Federal Reserve Bank of Kansas City has in undistributed lending power more than $50,000,000 of funds available for financing the 1921 harvest and for the movement of crops, live stock and other products of this district, whereas on November 5, 1920, and also on June 18, 1920, it is recalled that the Federal Reserve Bank was borrowing heavily from outside banks to meet the actual needs of this district. As a further iridication of the progress towards a settling down to a basis of sound, healthy activity, it is noted that Federal Reserve notes and Federal Reserves Bank notes in actual circulation on June 15, 1921, totaled $92,954,285 as compared with $125,968,425 on November 5, 1920, and $113,690,905 on June 18, 1920. The ratio of total reserves to net demand deposit and Federal Reserve notes liabilities combined on June 15, 1921, was 49.1 %, which compares with a ratio of 39.4% on November 5, 1920, and 40% on June 18, 1920. While loans through the Federal Reserve Bank have been reduced more than one-half, it is also noted that the banks of the District in recent months have busied themselves with reductions of loans. The combined statement of 82 selected member banks scattered over this district may be regarded ·as a sample of what others of the 4,750 banks, both member and nonmember banks, have accomplished. The statement as of June 8, 1921, shows that the loans and discounts (Compiled June 20.~1921) 2 THE MONTHLY REVIEW ( exclusive of rediscounts) and the investments of these 82 selected member banks totaled $525,162,000 which compares with a total of $595,720,000 on ovember 5 and $610,895,000 on June 4, 1920. Demand deposits on which the reserves are computed have been reduced, the total as of June 8, 1921, being $370,453,000 as against $394,927,000 November 5, 1920, and $419,752,000 as of June 4, 1920. Time deposits at the last reporting date, June 8, 1921, were $105,955,000 against $99,029,000 the first week in November last and $98,568,000 at the corresponding fir t June report in 1920. ·· The seasonal requirements of agriculture, .live tock, all of the basic industries of this district and of business are now very large arid are expected to continue o, but the financial situation is regarded as such that no apprehension need be felt as to an ample supply of currency and credit for all legitimate busine . In fact, in the process of readjustment of conditions toward what it is rea onably believed they should be, uch progress has been made that the Federal Reserve Bank of Kansas City is now more libetally crutinizing commercial paper, including motor car and jewelry paper which in the period of stress about this time last year wa regarded a not so urgent as the movement of many million dollars of farm products. It is believed the time has arrive~ when high class eligible motor car paper supported by solvent financial statements may be considered on the ame plane as any other commercial ·paper. Debits.-Sixteen reserve cities through !heir clearing houses report debits to individual account for the four weeks ending June 8 totaling $891,200,000 as compared with $932,410,000 for the four weeks ending May 11 and $1,228,804,000 for the corresponding four weeks in 1920. The debits in these cities for May compared with one year ago reflect a decrease of 37.8%, which is an indication of the contraction of business and deflated values of commodities. The debits for the four weeks ending June 8 follow: Atchison . . .............. ---· ................ $ 4,427,000 Bartlesville . . . . ... . . . . . . . . . . . . . . . . . . . . . . . . .. 8,357,000 Cheyenne . . . ........................... ----.. 6,782,000 Colorado Springs . . .............. ---- . . . . . . . . 9,131,000 Denver . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125,918,000 Joplin ...... .. .. ...... ........ ----...... ..... 8,264,000 Kansas City, Kans. . . . . . . . . . . . . . . . . . . . . . . . . 13,203,000 Kansas City, Mo. . . .. .................... ---- 275,732,000 Muskogee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,681,000 Oklahoma City . . ................ ----. . . . . . . . 72,588,000 Omaha . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159,443,000 Pueblo . . . ................. ----. . . . . . . . . . . . . . 9,605,000 St. Joseph . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52,532,000 Topeka . . . ........................ ----. . . . . . . 12,302,000 Tulsa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71,498.000 Wichita . . . . . . . . . . . . . . ...... ...... ......... .. 41,737,000 Four weeks, 1921 ....... . ... . ............... $ 891,200,000 Four weeks, 1920. . . . . . . . . . . . . . . . . . . . . . . . . . . 1,228,804,000 Clearings.-The report of clearing houses in thirty.two cities of this district record a total of $1,164,832,151 for the month of May, while twenty-eight cities in May, 1920, reported clearing amounting to $1,688,656,604. The May total is $31.9% below the total for the same month la t year, this percentage being computed on the totals for cities reporting for May in both years. · BA K CLEARINGS FOR THIRTY-TWO CITIES IN THE TE TH FEDERAL RESERVE DISTRICT FOR MONTH OF MAY, 1921 Pct. Change May, 1921 -38.5 Kansas City, Mo ................. $ 569,946,173 -36.1 Omaha, Neb. . . .. .. . . . . . .. . .. . . . 150,265,985 - 23.7 Denver, Colo. . . . . . . . . . . . . . . . . . . . 115,873,563 75.9 Oklahoma City, Okla. . . . . . . . . . . . . 94,848,478 - 20.6 Wichita, Kans. . . . . . . . . . . . . . . . . . . 44,935,975 -41.9 St. Joseph, Mo. . . . . . . . . . . . . . . . .. . 38,797,361 - 37.8 Tulsa, Okla. . . . . . . . . . . . . . . . . . . . . 33,259,370 4.2 Kansas City, Kans. . . . . ---- . . . . . . . . 16,268,992 -39.4 Lincoln, Neb. . . . . . . . . . . . . . . . . . . . 14,574,499 -19.9 Muskogee, Okla. . . . . . . . . . . . . . . . . 13,691,323 - 27.7 Topeka, Kans. . . . . . . . . . . . . . . . . . . 10,520,520 - 38.9 Hutchinson, Kans . . . . . ---- .... .. ... 7,647,877 Enid, Okla. . . . . . .. .. . . .. . . . .. . .. 5,561,133 - 30.8 Cheyenne, Wyo. . . . . . . . . . . . . . . . . . 5,146,246 Grand Island, Neb. . . . . . . . . . . . . . . 4,315,955 -38.8 Okmulgee, Okla. . . . . . . . . . . . . . . . . . 4,236,584 - 46.6 Joplin, Mo. . . . . . . . . . . . . . . . ...... .. 4,184,512 -22.1 Colorado Springs, Colo. . . . . . . . . . . 3,668,143 -17.2 Pueblo, Colo. . . . . . . . . . . . . . . . . . . . 3,453,514 Bartlesville, Okla. . . . . . . . . . . . . . . . 3,341,993 Independence, Kans. . . . . . . . . . . . . . 2,751,122 -33.8 Hastings, Neb. . . . . . ....... ........ 2,357,771 -37.9 Atchison, Kans. . . . . . . . . . . . . . . . . . 2,199,178 -12.2 Pittsburg, Kans. . . . . . . . . . . . . . . . . 2,137,445 - 41.8 Fremont, Neb. . . . . . . . . . . . . . . . . . . 2,052,776 - 30.5 McAlester, Okla. . . . ........... ---1,989,792 -46.,: Guthrie, Okla. . . . . . . . . . . . . . . . . . . . 1,410,256 - 8.8 Lawton, Okla. . . . . . . . . . . . . . . . . . . 1,398,997 - 25.2 Parsons, Kans. . . . . . . . . . . . . . . . . . . 1,371,904 - 25.2 Law1·ence, Kans. . . . . ---- . . . . . . . . . . . 1,369,908 -63.2 Miami, Okla. . . . . . . . . . . . . . . . . . . . . 901,115 -29.9 Emporia, Kans. . . . . . . . . . . . . . . . . . 353,691 Total, May, 1921 .................. $1,164,832,151 '~-3U) Total, May, 1920. . . . . . . . . . . . . . . . . . 1,688,656,604 *Percentage computed on cities reporting for both years. BUSINESS FAILURES IN MAY Insolvencies in the Tenth Federal Reserve District in May numbered 67 with $1,073,219 as the amount of liabilities involved. In the number of failures the Tenth Reserve District was next to the lowest of the twelve Districts, exceeding the Ninth District total by 8. In liabilities, however, the Tenth District stood at the bottom of the list, its total being $130,177 b.elow the total for the Ninth District. First ......... . Second ....... . Third . . ...... . Fourth . . . .... . Fifth ......... . Sixth ........ . Seventh ....... . Eighth ....... . Ninth ........ . TENTH ...... . Eleventh . . . . . . Twelfth ...... . Number 1921 1920 97 52 222 133 69 37 102 42 99 41 148 44 169 60 101 13 59 18 67 16 92 15 131 76 Total, May . . . . 1,356 547 Liabilities 1921 1920 $ 2,783,066 $ 376,586 11,172,495 2,413,591 1,516,894 1,085,182 1,969,231 2,544,273 2,657,764 1,577,684 4,750,423 715,555 5,624,522 692,450 20,612,058 61,243 1,203,396 163,487 1,073,219 179,251 1,851,774 168,165 1,851,629 848,810 $57,066,471 $10,826,277 In the following i given the number and liabilitie'' f fay failure in the United State by separate classes, with the April returns for purposes of compari ?ns: Number Liabilities May April May April Manufacturing . . . ... 294 337 $13,566,725 $14,111,238 Trading ............ 988 1,063 19,351,037 17,066,816 Agents, Brokers, etc.. 74 87 24,148,709 7,389,715 THE MONTHLY REVIEW MERCANTILE. A good many decidedly favorable symptoms are contained in the reports from the various lines of trade, yet improvement is slow and irregular, suggesting that complete readjustment has not yet been affected. Sales by wholesalers to retailers, while showing improvement in May over April, are generally running I elow the sales of May of last year, this being largely due to recent price reductions. Traveling men report merchants in many sections greatly in need of goods but still holding off expecting lower prices. Following is a summary of the wholesale reports received for the Monthly Review showing percentage changes in ales in May compared with sales in April of this y ar and May of last year: Sales in May, 1921, compared with April, 1921 May, 1920 Dry Goods . . . .. .. . .. . . . .. . . . . . 15.6% -44.8% Groceries . . . . . . . . .. . . . . . . . . . . . . - 0.8 -26.5 Hardware . . . . . . . . . . . . . . . . . . . . - 8. -31.2 Harvest and Hays Tools. . . . . . . . . 50. -70. Furniture . . . . . . . . . . . . . . . . . . . . . -12.7 - 17.1 D1·ugs . . . . . . . . . . . . . . . . . . . . . . . . - 5.4 -21.9 J e :velry . . . . . . . . . . . . . . . . . . . . . . 25. -28. tationery . . . . . . . . . . . . . . . . . . . . -28. -29.3 Auto Supplies . . . . . . . . . . . . . . . . 12. -30. Two large nationally known manufacturer report sal of automobile tire in May were better in the cities than in April but not quite so good in the country di tricts.' Sales in· May were in money volume 48% less than in May, 1920, but in units only 30% ]es. than in the same month last year. Figures for May were adver ely affected by the necessity of rebating on account of price declines under the guarantee, these declines amounting to 20% on May 2. f n the first half of June sales picked up materially an l were reported as practically double the sales for the fir t half of May. Manufacturers in the stationery line report sales in May 2% better than in April but 46% below last year's sales for the same month. Retail.-The state of retail trade in the cities of this di trict is fairly well reflected by the department store reports. Fifteen stores reporting show sales in money MMARY OF DEPARTMENT STORES REPORTS FOR MO TH OF MAY IN THE TENTH FEDERAL RESERVE DISTRICT P rcentage increase ( or decrease) of net sales during May, 1921, over net sales during same month last year ........................................ - 5.3 P rcentage increase ( or decrease) of net sales from January 1, 1921, to May 31, 1921, over net sales during same period last year. . . . . . . . . . . . . . .... . . - 3.8 P rcentage increase ( or decrease) of stocks at close of May, 1921, over stocks at close of same month last year..................................... -19.8 Percentage increase '(or decrease) of stocks at close · of May, 1921, over stocks at close of April, 1921. - 4.3 Percentage of average stocks, selling price, at close of each month this season (commencing with January 1) to average monthly net sales during the same period . . . . . . . . . . . . . . . . . . . . . . . . . .... . . . . . . 359 .2 P rcentage of outstanding orders (cost) at close of May, 1921, to total purchases (cost) during the calendar year, 1920 . . . . . . . . . . . . . . . . . . . . . . . . . . 3.9 P rcentage of collections during month of May, 1921, on amount of outstanding accounts on April 30, 1921 .............. . ........ ······............. 48.9 ere ntage of co11ections for same period la t year.. 51.4 3 volume in May were 5.3% less than in the corresponding month last year while sales for the season January 1 to June 1 averaged 3.8% less than for the same period last year. Sales of shoes in May averaged 16.2% above sales in the same month last year and were 13.6% larger from January 1 to June 1 than for the same period of 1920. Men's clothing sales fell 34% below the month's sales last ·year, due chiefly to the cut in prices. The reports of a number of retail stores in cities of the second class in the district indicate May sales were 1.2% below April sales and 14.5% below May, 1920. In the reports mention is made of an improvement in early June, due to favorable crop prospects. BUILDING OPERATIONS. The reports for eighteen cities of the Tenth Federal Reserve District reflect greater construction activity in May than in any other month of the present year, both in the number of permits issued and the estimated value of the buildings. It is also noted that May is the first month of the year to show an increase in the estimated value of buildings for which permits were issued as compared with the corresponding month in 1920. Sixteen of the eighteen cities reported larger number of permits issued in May, 1921, than were issued in the same month last year, only two showing a smaller number of permits. The following table gives the number of permits issued in May with the estimated value of buildings and the percent of increase or decrease as compared with the same month la t year: Permits Est. Value Tulsa, Okla. . . . . . . . . . . . . . . 232 $1,056,060 Kansas City, Mo. . . . . . . . . . 475 1,008,500 Wichita, Kans. . . . . . . . . . . . . 238 960,622 Denver, Colo. . . . . . . . . . . . . . 664 807,476 Omaha, Neb............... 196 788,709 Oklahoma City, Okla. . . . . . 201 , 537,550 Casper, Wyo. . . . . . . . . . . . . . 162 445,230 Kansas City, Kans. . . . . . . .. 87 176,510 Okmulgee, Okla. . . . . . . . . . . 69 161,110 Lincoln, Nebr. . . . . . . . . . . . • 75 141,602 Muskogee, Okla. . . . . . . . • . • 43 131,745 St. Joseph, Mo. . . . . . . . . . . • 112 98,795 Topeka, Kans. . .. . . . . . . . . .. 92 96,833 Pueblo, Colo. . . . . . . . . . • . • • 65 67,755 Colorado Springs, Colo. . . . • 106 63,133 Cheyenne, Wyo. . . . . . . • . . • 35 28,715 Leavenworth, Kans. . . . . . . • 13 20,000 Joplin, Mo. . . . . . . . . . . . . . • • 12 10,200 May, 1921 . . . ......•••••.. 2,877 May, 1920 •....•.......... 2,065 $6,600,552 6,436,060 Pct. Change 44.4 - 6.8 297.8 18.9 -44.5 102.6 192.6 162. -46.6 35.2 - 2.1 -37.7 -83.4 -67.1 23.4 -87.3 185.7 -46.1 2.5 The total number of permits issued in the cities reporting for the first five months of 1921 were 10,629 as compared with 9,153 in the same five months last year. The estimated value of buildings for the five month period this year is $25,057,640 as compared with $37,395,175 in the first five months of 1920. The larger number of permits issued this year with the smaller valuation indicates that residential building continues to lead and is taking preference over other classes. The demand for new construction, however, continues very strong throughout all this district. Wage disputes have been in process of adjustment in ne3:rly all of the cities and building activities of 1921 have apparently not reached the height which otherwise could be expected. 4 THE MONTHLY REVIEW THE CROPS IN JUNE Rains, varying from copious showers to torrential downpourings, are reported this month from all sections of the Tenth Federal Reserve District. Rains usually are plentiful in the spring months with the maximum in May, but June this year has proved to be the month of greatest precipitation. While floods in many streams have damaged crops in low lands, and while farm work has been retarded to a considerable extent here and there, the June rainfall has supplied the moisture needed to "make" the wheat, rye, barley and oats crops and to help the fall crops through the dry season that usually follows May. The reports from all states indicate that farm conditions are much improved. In many sections crops have seldom made more rapid progress and the general outlook for crops in this district is now better than before the rains began. Winter Wheat.-The harvesting of winter wheat began in the southern sections early in June with binders and headers busy between showers. It moved northward during the first half of the month and at the date of this Review harvesting was general throughout Oklahoma and the southern half of Kansas and Missouri, while the grain was maturing as far north as Nebraska. The Government estimates of June 1 placed the probable winter wheat crop of the United States at 578,196,000 bushels as compared with 577,763,000 bushels threshed last year. The reports from the states of the Tenth Federal Reserve District, however, indicate that the crop will fall below that of 1920. According to various official estimates the district will yield between 215,000,000 and 235,000,000 bushels, which compares with 272,370,000 bushels threshed in 1920. The reports reflect a marked deterioration in the condition of winter wheat during the month of May, due to unfavorable weather conditions, damage from the freeze at Easter time, and from rust and insects. The decline in condition between the reporting dates May 1 and June 1 was the most marked in Kansas, the state of largest wheat production, but a notable drop is also recorded for Nebraska and Oklahoma, both large wheat producers. The following is a tabulation of the reports of the State-Federal Crop reporting service for the states of this district showing the per cent of condition of winter wheat on June 1 compared with the May 1 condition, the probable acreage for harvest and estimated yield on June 1 condition: Acres to Condition Est. Yield Harvest June 1 May 1 Bushels Kansas •.........••. 9,516,000 60% 84% 102,773,000 Nebraska ........... 3,235,000 75 92 48,525,000 Oklahoma . . . . . . . . . . 2,976,000 70 84 35,206,000 Missouri (19 counties). 612,720 82 84 9,396,000 Colorado . • . . . . . . . . . • 950,000 89 90 16,188,000 Wyoming • . . . . . . . . . . 61,000 85 92 1,097,350 New Mex. (10 counties) 85,000 75 87 1,280,000 Total 10th Dist. June 1 •.....•.... 17,435,720 Total 10th Dist. 1920 Final ....•.•..•. 16,007,000 67% 85.8% 214,465,350 272,370,000 Estimates based on assessor's reports in Kansas indicate approximately 1,000,000 more acres than above reported, which may add about 10,000,000 bushels to the total Kansas estimated yield. A similar situation is reported in Oklahoma where the census reports show 1,000,000 acres more wheat than the Government estimates, and which may increase the estimated yield for that state to approximately 45,000,000 bushels. Spring Wheat.-Good stands of spring wheat are reported generally and the growth is also reported as satisfactory. The spring wheat acreage this year is about the same as in 1920, or around 600,000 acres. June 1 condition in Nebraska was reported at 75% and in Wyoming 98%, indicating 2.858,000 bushels in Nebraska and 4,290,000 bushels in W yarning. Oats.-Due largely to poor growing weather in April, dry weather in May, rust and some insect damage, the June condition of oats in a large part of this district is the poorest in recent years. Kansas, Oklahoma, Nebraska and W yarning, with a combined acreage of 6,600,000 acres, report an estimated crop of 158,990,000 bushels, as compared with 210,839,0QQ bushels on 6,441,000 acres last year. Barley.-The States of Kansas, Nebraska, Oklahoma and Wyoming forecast a crop of 23,149,000 bushels, on 1,271,000 acres which is 9,672,000 bushels less than was produced in 1920 on practically the same acreage. The condition of rye is reported at 96% in W yarning, 90% in Nebraska, 78% in Oklahoma, 75% in Kansas and 90% in Colorado. This would indicate a total of about 8,000,000 bushels in the five states compared with the final total for 1920 of 7,606,000 bushels. Corn.-The condition of corn in Oklahoma is excellent and wonderful growth has been made during the early part of June with prospects fine for a good crop. Some corn is laid by in that State. In parts of Kansas corn got a bad start, the planting and germination being delayed by cold weather at the end of April and the first part of May. In Nebraska the report says corn was damaged in some sections by heavy rains but in general the stand and condition is very good. In Missouri a high average condition ranging from 76% to 96% is reported in the northwestern counties while in the extreme southwestern counties the condition ranged from 63% to 74%. The official report of the acreage of corn planted for this year with per cent of condition will be made public in July. Cotton.-The cotton crop in Oklahoma is m<!king fine progress and the condition June 1 was reported at 74% of normal, which is 4 points better than last year. Taken as a whole, the crop this season has started out better than it did in 1920 and most fields are clean and well cultivated with chopping progressing favorably. The July crop reports will give the 1921 acreage and estimated production. 5 THE MONTHLY REVIEW RECEIPTS AND SHIPMENTS OF GRAIN (BUSHELS) AT AND FROM THE TENTH DISTRICT FOR THE MONTH OF MAY, RECEIPTS Kansas City Omaha Wichita May, May, May, May, May, May, 1921 1920 1921 1920 . 1921 1920 Wheat • • •....... 7,352,100 4,158,000 2,325,600 1,496,400 1,502,400 976,840 Corn • • . • . . . . . . . . 973,750 877,500 1,771,000 1,507,800 108,000 39,000 Oats • • • • . . . ..... . . . 340,000 384,200 722,000 1,140,000 12,000 7,000 Rye • • • . . • • • • • • • • 9,900 41,800 41,800 84,700 . . . . . . . . 3,000 Barley • . . . • • • • . . 87,000 138,000 50,400 39,600 . . . . . . . . 20,000 Kaffir ••. ,. • • • . • • • 301,400 540,100 . . . . . . . . . . . . . . . . 8,000 91,000 SHIPMENTS Wheat • . . .....•.. 5,193,000 4,004,100 1,900,800 1,651,200 760,000 487,000 Corn ............ 1,298,750 75,000 32,000 393,750 1,593,200 1,754,200 Oats • • •. . • • • . . • . • 424,500 · 262,500 12,000 7,000 598,000 1,180,000 Rye . . . . . .. . . ...... 20,900 52,800 ....... . 3,000 31,900 46,200 Barley • • •. • • • . . . • 97,500 37,800 ..... .. . 85,800 37,800 20,000 Kaffir • • • . . • . . • • • 428,000 8,000 91,000 240,000 FOUR PRINCIPAL MARKETS IN 1921, AND 1920 St. Joseph May, May, 1921 1920 784,500 750,000 753,000 670,500 78,000 78,000 28,000 28,500 453,000 700,500 46,000 3,500 340,500 471,000 24,0'00 Four Markets May, May, 1921 1920 11,964,600 7,381,240 3,605,760 3,094,800 1,152,000 1,609,200 51,700 129,500 165,400 197,600 337,900 631,100 8,306,800 6,482,800 3,667,450 2,650,950 1,080,500 1,473,500 67,100 87,700 155,300 127,100 436,000 331,000 Barrels Pct. GRAIN MOVEMENT Kansas City . . . . . . . . . . . . . . . . . . . 247,750 -10.9 Heavy receipts of last year's wheat crop at the Omaha . . . . . . . . . . . . . . . . . . . . . . . . . 48,435 - 4.3 markets of this district during the five months of 82 Mills . . . . ..... . . . . . . . . . . . . . . . . . 841,250 -18.1 1921, now passed, have materially reduced the large -16.1 surplus of wheat on farms and, with continued liberal Total . . . ....................... 1,137,435 receipts during June reported, it is indicated that by Flour receipts at Kansas City in May were 55,900 the time the new 1921 wheat begins to arri~e stocks barrels and for the same month last year were 64,350 of old wheat will have been reduced to but little barrels. Shipments of flour in May were 106,925 barabove the normal carry over. The reports for the rels compared with 255,775 barrels in May, 1920. _ Kansas City and Omaha markets show that approximately lo<J,000,000 bushels of wheat have been re- LIVE STOCK ceived during the eleven months July, 1920, to May, The condition of all classes of live stock continues 1921, inclusive, which is approximately 13,500,000 to range from good to excellent. The lo~s of lamb5, bushels more than were marketed during the eleven calves and pigs has been small and all young stock months following the 1919 harvest. are generally reported to be exceptionally strong an<j May receipts of wheat at four markets, Kansas City, vigorous. Considerable hog cholera is reported in Omaha, St. Joseph and Wichita, totaled 11,964,000 Nebraska. Meadows and pastures are thriving and bushels, which was 4,583,360 bushels or 62% above ai-e in excellent condition. Alfalfa and clover were the receipts for the same month last year. Oats re- damaged severely by frost and freezing and the first ceived totaled 1,152,000 bushels or 475,000 bushels less · crop was light in some sections, especially in Kansas than in May of last year. Receipts of rye, barley an~ and Oklahoma, although the second growth is doing kaffir were perceptibly less in May than in the same well. month last year. Market Movements.-Receipts of live stock at the Price changes are indicated by the following which markets continue heavy. May receipts of 360,526 catshows the average cash prices of grain at Kansas City tle at six markets were 10.2% larger than the April in cents per bushel at the dates mentioned: receipts but were 9% less than the r..e.feipts in May, May 20 June 3 June 17 1920. Receipts of calves in May were 43.2% larger Wheat than in April and 19.9% larger than in the same month No. 2 Dark Hard • . ........ 160 155 162½ No. 2 Hard ...••. 152¾ 158¾ 140 last year. Hogs, numbering 767,571 in May, were No. 2 Red .•.............. 157 134 157¾ 17.6% above the April receipts and 22.6% less than Corn the receipts in May, 1920. The marketing of sheep No. 2 White ••...........• 57½ 58¾ in May totaled 465,131 head, 19.1 % below the total No. 2 Yellow .•........... 56 58 No. 2 Mixed •••....•...... 53¾ 57½ for April but 24.2% above May receipts last year. The Oats . movement of horses and mules to market in May No. 2 White .............. 40 41¼ 38½ was con iderably lighter than in the previous month FLOUR PRODUCTION this year and only about one-half of the number markMills at Kansas City and Omaha and eighty-two eted during the corresponding month in 1920. interior mills in Missouri, Kansas, Nebraska and Okla~ , Hon~& homa produced 1,137,435 barrels of flour in the four Cattle Calves Hogs Sheep Mules Kansas City . . . ... 148,693 18,146 255,317 192,320 2,350 weeks ending May 28. This is 55,646 barrels le::, 334 than the production in the previous four-weeks period Omaha . . . ........ 100,588 3,756 238,444 139,273 St. Joseph ........ 33,140 4,569 139,685 64,023 398 this year and 218,063 barrels or 16.1 % below the pro- Denver . . .... . . . . . . . 37,325 3,621 36,984 58,164 367 duction in the corresponding four weeks in May of Oklahoma City .... 17,542 4,652 48,078 2,280 37 9,071 744 last year. The following shows the number of barrels Wichita ...... .. .. 23,238 2,678 49,063 of flour produced in the four weeks May period with May, 1921 ........ 360,526 37,422 767,571 465,131 4,230 percent of change from a corresponding period in April, 1921 ........ 327,164 26,134 652,304 575,185 5,195 M 1920: •••••••••• May, 1920 ......... 397,977" 31,196 991,672 374,325 8,968 THE MONTHLY REVIEW 6 Prices.-Only slight changes in the market prices of live stock are reflected by the following which ·how the range at Kan a City at the date mentiened: May 24 Hogs, bulk sales ...... $7.80@ .25 Beef stee1·s, choic ... . 7.75@8.75 Butcher cattle, Common to choice .. 5.00@7.60 Feeder steers, Common to choice .. 6.25 @7.75 Stocker steers, Common to choice 4.25@7.35 Lambs, med. to choice. 8.75@9.85 heep, med. to prime yearlings . . . 6.75 @8.75 June 7 $7.25@ 7.60 8.00@ 8.85 June 17 $7.60 @ 7.80 7.85@ 8.70 4.35@ 7.25 4,25@ 7.40 6.10@ 7.75 6.10 @ 7.85 4.15@ 7.25 9.75@12.00 4.00 @ 7.25 7.75@10.50 6.50 @ 9.75 5.00@ 8.75 Meat Packing.-Purchases by packers of cattle and calves for slaughter in May exceeded purcha e in pril and also in the corresponding month la t year. early 100,000 more hogs were slaughtered in May than in April, though the May record was 114,000 below the month a year ago. Sheep slaughtered were 110,000 less than in April and 91,000 more than in May, 1920. The purchases b , packers for May at th e , i r centers are given here: Cattle · Kansas City . . . . . . . 75,924 Omaha . . . . . ..... . . . . 70,113 . t. Joseph . . . . . . . . 21,450 Denver . . . . . . . . . . . 8,845 Oklahoma ity . . . . 9,133 Wichita . . . . . . . . . . . 4,335 alves 15,806 1,593 4,409 2,249 4,137 889 Hogs 216,673 185,630 ]21,058 34,615 45,372 45,604 Sheep 135,444 115,626 56,812 10,683 1,282 779 Ma , 1921 ........ 189,600 Aprfl, 1921 .. ---- ... 182,095 ay, 1920 ......... 1 2,993 29,083 19,875 21,529 648,952 551,25 762,692 320,G26 352,223 237.202 Pack r r I rl that under the surface of tl ings the indu try made some improvement in May. A heal thy f reign trade with further adjustment of international affair i pointed out as giving encourag ment to the ituation. Demand wa generally g od in th bee£ and pork branches of trade, pe iall y for ur d m ats, with prices trengthen d. less than at the same date in 1920 but in the Healdton and Hewitt fields the daily average for the week ending June 3 was 58,500 barrels or 8,500 barrels more than in the same week in 1920. The following estimates based on reports from the various fields in Kansas and Oklahoma which are accepted in advance of the official United States Geological Survey reports indicate the daily average number of barrels produced during the week ending at the dates mentioned, with figures showing the daily average for the corre ponding weeks in 1920: Week Ending Daily Average 1921 May 20 . . . . . . . . . . 400,750 May 27 . . . . . . . . . . 402,750 June 3 . . . . . . . . . . . 408,750 June 10 .... : .. . . . . 412,250 June 17 . . . . . . . . . . 412,500 Daily Average 1920 365,500 368,000 369,500 379,000 382,000 It is estimated that in the thirty-one days of May approximately 12,360,000 barrels of crude oil wer produced in Kansas and Oklahoma, the daily averao-e for the month being about 366,000 barrels. To this large May production is to be added .the total for Wyoming which is around 58,000 barrels per day or a total for the month of approximately 1,800,000 barrels. ~ Development operations in Kansas, Oklahoma an l Wyoming showed an increase in both number of w 11 · c mpleted and daily new production in May over pril, alth ugh Ma , 1921, _record is far b low that for the ame month o[ 1920. 1'he figure. n elev I pm nls f llow: W 11s ompl t -<l Kansas . . . . ...... . 109 Oklaho na . . . . . . . . 580 Wyoming . . . . . . . . 25 May, 1921 . . . . . . . . 714 April, 1921 . . . . . . . . 588 May, 1920 ........ 1,277 Bbls. Dail y ew Prod'n. J0,837 67,034 9,500 87,461 65,147 102,315 Rigs & v ll.,; rilling 30G 1,489 629 2,42•1 2,426 3,190 Re luction in prices of crude oil in the past thirty PETROLEUM. lay have been frequent and have brought all grades Cmde oil has been flowi1 g fr 111 wells .in I ansa [ Kansas and Oklahoma crude to around $1 per barand Oklahoma ince middle May at an average con- r 1 with Healdton down to 75 ents. '\i\Tyoming crncl ' id rably abov 400,000 barrel a day and the volume i~ ha nffered similar cuts and i aroun l $1 per barrel. now very clo e to the high peak of productivity o[ last veral 0 ·rades s lling belovv that figure. a re ull year. Development are going on in many fields re- the petroleum inclu try i c_on iderably depre ed. gardless of efforts put forth by producers and refiners The steadily increased production in crude oil anrl to check operations and, if possible prevent great a cumulation of refinery products have cans d reoverproduction, especially at this time when stocks in vi ions of price of refined petroleum and petroleum the two states are close to 60,000,000 barrels, tank products in general. Prices are now lower than for are practically all full, pipe line capacity is limited, and many months. June 1 prices on kerosene and gasoline -rude oil price are at the lowe t since before the announced by the Standard Oil Company, the Magwar. nolia Petroleum Company and the Continental ii Production in Kansas reached 100,000 barrels a day C mpany were for the cities named as follows: in the week ending June 3. Subsequent reports indiGasolene Kerosen cate that there has been a teady increase and at thi Tank Wagon Servi e Stati on Tank Wagon date Kan ·a is close to the high mark of 105,000 bar- Kansas City . 18.7c 19.7 9.5c 19.8 20.8 10.2 rels per day recorded for that State in the third week St. Joseph ....... . ......... . 18.5 19.5 9.5 of December last year. Oklahoma outside wells were Omaha Wichita ......... . 19.5 20.5 10 flowing oil at the rate of 223,500 barrels a day on Tulsa ........... . 19 21 11 June 3, which was 33,500 barrels more per day than Oklahoma City . . . 19 21 11 21 23 15 was produced in the corre ponding week last year. Denver ......... ·.. Pueblo .......... . 24 26 15 In the Cushing and Shamrock district the flow on Casper ......... . 22 23 12.5 June 3 was 26 750 barrels per day or 10,800 br1rr l Cheyenne ........ . 23.5 25.5 4 VIEW 'I' COAL MINING. . Production of biluminou coal in the United tates i~·om) anuar~ 1 to.June 1 continued far below product 1011 111 ~he first_ five months of last year and in fact f the five prev10us years. Accordino· to the United tates Geological Survey report 160,513 000 net tons \~e~e produced in the ~ir t J2~ working days of 192( J h1 total c9m~ares ~v1th 207,149,000 tons produced in the corresponding five months of 1920. It is also 11,000,000 tons behind 1919 when demand was low and the carry over from the preceding season was the greatest on record. . I~1 the coal minin~ states of this district the reports 111d1cate that the mmes were operated in May at an average of 50.9% of their capacity. Oklahoma showed the largest per cent of operation to capacity which , as 59.4%. In Kansas it was. 52.6%, in Missouri ~ .6% a!1cl in olora lo 42.3%. I os e f peration were chiefly <lue to no market. Slril e , lab r short~ge and transportation difficulties figured very lightly 111 the ummary of lo ' f pcrati 11 , hich follow: 1 Colo. Kan . Mo. kla. Dist. Av. .5% 9.5 6.3 9.~ 25.0 .9</o 1.4 2.2 1.4 47 .3 ... % Tran ·portation Disability . . . . . . . . .1 % Labor Shortage . . . . . . . . trikes . . . . . . . . . . . . .1 /fine Disability . . ... 1.7 o Market . . ....... 38.8 .4 1.1 .6 38.4 .4% 2.8 2.4 3.2 37 .5 Coal markets have hown little change in recent , eks. Con umers who use steam coal are buying for actual needs. Very little coal is being tored altho~1gh _a fe;,v hou eholders are beginning to put in tl_1eir ~v~nter s supply. The railroads are showing no <l1 po 1l10n to r_ene~ contracts which expired on April 1 and are buymg m the open market sufficient coal f r their needs. Retail dealers anticipate a bio- rush in the late summer and fall season but they a~e apparently in no hurry to lay in stocks to meet such a demand. COLORADO METAL MINES. Metal mining conditions in Colorado con tinue quiet. Ther_e is a little prospecting and development work startmg up, but not as much as there would be at this time of year in normal times. Efforts are beino- made to ecure a reduction in freight rates and in the cost of certain _supplie . which will help those operators who are still workmg. o general revival however i, looked for until there is a considerable ;ise in th~ price of base metals. An exception to the above must be noted in connection with Cripple Creek where production continues to increa e lowly. ' ZINC AND LEAD t the beginning of May when the price of zmc re reached $26.00 per ton several operator in the T\Ii ouri-Kan as-Oklahoma district began to make prepar~tion for reopening their propertie , and several mme have been reopened. However, with the cleclinc in the price paid for zinc in May too-ether 0 with a 5.00 decrease in the price per ton of lea d, the number wa not o great a would have been had the price remained fixed at the ame level as at the beginni1w of the month. There is a little drilling activity in the ctistrict, this being mainly to locate shal- low deposits of lead ore which can be miued profitably at the present price paid . The month of fay opened with zinc elling at $26.qo per ton and clo ed at $22.50. Total hipm nls of zmc for the month were 21,688 tons which compares with 26,024 tons for the 111011th ~f pril and 48,513 tons for May last year. The value of this tonnao-e for ~ay wa , $520,543, with an average price for the entire month of $24.00. There were no shipments whatever of calamine during May. The month opened with an average price f r all grades of lead ore of $57.46, and the followino- week the pr_ice w~nt ~o $60.0~, then took a drop of $5.00, at which pncc 1t remamed for the balance of the month. The total shipme1;ts made of lead ore during the_ month were 5,746 ton , with an average for the entire month of $57.02, and a value of $329,064. This compares ,vith 5,998 t n ·hipped in pril with an average of $46.20. There was an increa e in the ·urplu st )Ck , hel 1 by the producers over the pr vi us m nth. li mated that there i ~ now held in the di lri ·t of lead an 1 approximately 71,000 ton of zin LUMBER AND MATERIALS. Manufa _ture~ and wholesale!·s of lnml 'r r I urt ome declmes m demand for virtually all peci · of tructural_ wood~, t~1~mgh t_he lull has not a yet aff~cted prices prevailing this season, which are considerably below t_hose of one year ago. Retail yards are buymg very little beyond their immediate require~ents. Current conditions in the brick manufacturing mdu~try arc unsettled, but this situation is lowly improvm~ and some manufacturing plants are increasi1w operat101!s. Cement plants ~r~ operating at well up to capacity and the product 1s m fair demand. CONDITION OF 82 SELECTED MEMBER B KS June 8, 1921 May 4, 1921 1. Loans and Discounts ( exclusive of rediscounts): (a) Secured by U. S. Govt. obligations ........... $ 17,896,000 $ rn,995,000 ( b) Secured by stocks and bonds other than U. S. Bonds . . . . . . . . . . . . . . . . 71,847,000 72,189,000 (c) All other . . . . . . . . . . . . . 346,071,000 349,795,000 2. Investments: (a) U. S. Bonds ........... . 32,503,000 32,282 000 (b) U. S. Victory Notes ... . 3,117,000 2,858 000 (c) U. S. Cert. of Indebt ... . 6,373,000 5,660,000 ( d) Other bonds, stocks and securities ............ . 47,355,000 46,723,000 3. Total loans and discounts, and investments . . . . . . . . . . . . . . 525,162,000 528,502,000 40,020,000 4. Reserve bal. with F. R. Bk.. 40,944,000 12,879,000 5. Cash in vault . . . . . . . . . . . . . 12,581,000 6. Net demand deposit on which reserve is computed . . . . . . . 370,453,000 374,876,000 7. Time deposits . . . . . . . . . . . . 105,955,000 104,560,00• 8. Government deposits . . . . . . 602,000 3,568,000 9. Member banks' collateral notes secm·ed by 15.232,000 9,455,000 (a) U. S. Govt. obligations .. on (b) Allother . . .......... . 53,000 10. Bills discounted for member banks secured by (a) U. S. Govt. obligations.. 3,430,000 3,086,000 (b) All other . . . . . . . . . . . . . 35,549,000 37 207 000 Total (items 3 to 10 incl.) .. $1,104,184 000 $1,119;930:ooo I THE MONTHLY REVIEW Stat ment of Condit" on FEDERAL RESERVE B NK OF KAN AS CITY Including Branche At Close of Business June 15, 1921 RESOURCES Gold Coin and Certificates .................. $ Gold Settlement Fund F. R. Board. . . . . . . . . . . Gold with Federal Reserve Agent .. ----........ Gold Redemption Fund . . . . . . . . . . . . . . . . . . . . . Legal Tender Notes, Silver, Etc..... . ........ Bills Discounted: Secured by Govt. Obligations ........... . All Other . . . ..................... ----.. . Bills Bought in Open Market ............... . U. S. Bonds and Notes ..................... . One Year Cert. of Indebtedness (Pittman Act) All Other Cert. of Indebtedness ............. . Bank Premises . . ........................ ---· 5% Redemption Fund Against F. R. Bk. Notes Uncollected Items . . . ..................... . All Other Resources . . ...................... . 2,038,046.72 35,881,978.06 34,073,750.00 3,228,824.75 3,399,701.95 22,580,250.17 54,257,901.53 25,000.00 8,867,850.00 8,320,000.00 78,500.00 2,649,087.73 915,590.00 53,023,455.86 543,506.61 Total Resources ...................... $229,883,443.38 LIABILITIES Capital Paid In .... ---- ....................... $ Surplus .................................. . Reserved for Government Franchise Tax ... . Deposits: Government . . . ......................... . Member Banks, Reserve Account ....... . All Other .............................. . F. R. Notes in Actual Circulation ........... . F. R. Bank Notes in Actual Circulation ..... . Deferred Availability Items . . ...... ........ . All Other Liabilities . . ................... . 4,354,950.00 9,158,814.24 1,494,283.21 6,012,177.36 72,280,906.38 1,301,238.81 80,215,585.00 12,738,700.00 40,817,916.67 1,508,872.71 Total Liabilities . ,J •..... . ..•.......... $229,883,443.38 OTHER TOTALS Total Gold Reserves ...................... $ 75,222,599.53 Total Earning Assets . . . . ..... . . . . . . . . . . . . . . . 94,129,501.70 Total Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . 79,594,322.55 Ratio of Total Reserve to Deposit and F. R. Notes Liabilities Combined. . . . . . . . . . . . . . 49.1 % Ratio of Gold Reserve to F. R. Notes fa actual circulation after setting aside 35% against Deposit Liabilities . . . . . . . . . . . . . . ..... . . . 63.2% CLEARINGS Total Clearings for Week .................. $166,490,768.03 Total Number of Items Handled............ 1,196,844