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MONTHL·Y·
REVIEW
Agricultural and Busi'ltess Conditions
TENTH FEDERAL RESERVE DISTRICT
VoL. 22,
No. 7
FEDERAL RESERVE BANK OF KANSAS CITY
JUNE
30, I 937
Business in the Tenth Federal Reserve District
MAY 1937
COMPARED WITH MAY 1936
1
-------"--...:
Denver•
COLO.
% INCREASE
10 20 30_ 40
·--------KANSA
:'
.
I
--•
•
--•-
% DECREASE
40 30 20 10
KANS .
I
'
·--·-··-··--·-··--r-.!---
•·
■:
·_M~m.
-
Bk. Loans ___
'•.
Trade
_ Wholesale Sales ....
___ Retail Sales ___
I
_Lumber Sales .. _.
Marketings .
____ Wheat·-·-·····
.Corn_ •-··----·
-52
_____ oats.- --~••.
·---Cattle.... ......: ___
,, ___ Calves...:...____
_ _ _ .Hogs ______
••
.-----Sheep ________
:
._ _ __Flour ______
Production
.._Cattle Slaughter...
••
■
.
•
•
__ Calf Slaughter___
..
____ Ho:: Slaue-hter.....
:.. .. Sheep Slaughter....
... Crude Petroleum_
__ Bituminous CocL.
Zinc Ore Shipments
Lead Ore Shipmer.ts
Con•truction
_.Tctal Awards .. _
_____ Res. ·Awards ____
_,Value or Permits ___
M iscellaneou•
ii
_____ RainfalL...- ..
-·
•1
■
•-·•
•
••
••
._Dept. Store Sales_
. .·-
•Cash Farm Income
_.Employment___
____ Pay Rolls ___
•For previous month
..
■
·_Life Ins. Sales ..-
.-
I
•
_ Demand Deposit!I ...
,·
lower with the exception of hogs
which are about $1.50 per hundredweight higher. The amount of
corn and hogs marketed continues
abnormally small, but the number
of cattle coming to the market is
much above a year ago.
Petroleum output continues very
high. Flour production is 10 per
cent, department store sales better
than 7, and cash farm income 12
per cent above a year ago.
Bank loans tend to increase and
investments to decrease but at a
slower rate than in recent months.
Bank debits have decreased but
demand deposits are a little higher.
■
__ )fem. Bk~Invest._
•
•
~
10 20 30 40
10
F. R. Bk. Clearings
■
:
---·
-·
% INCREASE
% DECREASE
·40 30 20
Fin"(IJCcial
.. __ Bank Debit!I---·
I
The outstanding recent development has been the breaking of the
drought. A considerably better
than normal wheat crop seems
assured and the feed and range
situation is improved. Rains have
delayed corn, yet even here conditions are favorable.
Wheat and corn prices are appreciably below those of early May.
Live stock prices also are generally
5 MOS. 1937
COMPARED WITH 5 MOS. 1936
BUSINESS
INDICATORS
--• --·-•
••
--•
I
■
•
■
•
•
..
,
.
--
2
REVIEW OF AGRICULTURAL AND BUSINESS CONDITIONS
a fractional decrease in Treasury notes being offset by
an increase in bonds.
Loans and investments of reporting member banks
Principal items of condition of the Federal Reserve
in the Tenth District declined further from May 5 to · Bank of Kansas City and branches:
June 9, continued growth in loans to the largest volume
Change from
of the year being more than offset by further decreases
May 5
June 10
June 9
1937
1936
1937
in investment holdings, principally of Government
(In thousandsof dollars)
securities.
Total reserves ................................. .
293,247
+2,939 +59,112
discounted ...... ....................... .
235
-155
-19
The accompanying table shows for the first time a Bills
Bills purchased.......................... ..... .
114
+28
+27
more complete breakdown of the loan item than was Industrial advances....................... .
655
-28
-337
Commit. to make in dust. adv ...... .
128
-6
-349
available formerly. Of the total, 60.4 per cent are . U.
124,128
+7,284
S. Government securities._-·····
commercial, industrial, and agricultural loans, 8.0 per Total resources............................... . 456,563
+2,308 +69,498
R. notes in circulation ..............
162,030
+1,100 +18,671
cent purchases of open market paper, 1.7 per cent loans F.
Member bank reserve deposits..... .
240,822
-783 +67,804
to brokers and dealers in securities, 5. 7 per cent other
Dollar volume of check collections declined somewhat
loans for purchasing or carrying securities, 7.6 per cent
in
May from the rather high level of the two preceding
real estate loans, 0.5 per cent loans to...banks,""and 16.1
months.
Nevertheless, dollar volume was 10 per cent
per cent a residual of all other loans.
greater
than
in May of last year.
Demand deposits increased by nearly 4 per cent durCheck
collections
through this bank and branches:
ing the five-week interval from May 5 to June 9 while
ITEMS
AMOUNT
interbank deposits declined further to the lowest level
1937
1936
1937
1936
in more than a year. At the same time, balances of
(In thousands)
these reporting banks at other banks rose somewhat May ..................... .
5,886
5,768 $ 953,852 $ 868,002
.................. .
6,188
883,693
5,907
1,069,304
from the low point following the May 1 increase in re- ApriL
4,395,414
Five months ....... .
29,416
28,548
4,870,770
serve r~quirements. Reserve balances at this bank,
after reaching a new high .level around the middle of Bank Debits
May, have tended to decline.
Debits to individual accounts by banks in reporting
Principal items of condition of 51 reporting member centers declined slightly in May but showed an increase
banks:
of 15 per cent over May of last year, or approximately
Change from
the average rate of increase so far this year over 1936.
June 9
May 5
June 10
Payments by check in thirty cities:
1937
1937
1936
Member Bank Operations
Loans and investments-total... .. .
Loans-total. .................................. .
Coml., indust., agric.·-···············
Open market paper...... ·-···········
To security brokers and dealers
Other to purchase or carry secur.
Real estate loans ....................... .
Loans to banks........................... .
All other loans ........................... .
Investments-total.. ..................... .
U. S. Govt. direct obligations..
Oblig. guar. by U. S. Govt .......
Other securities·--·······················
Reserve with F. R. Bank. ............ .
Balances with domestic banks ..... .
Demand deposits-adjusted. ........ .
Time deposits ................................. .
U.S. Govt. deposits.----···············
Interbank deposits..........................
*Comparable figures not available.
(In thousands of dollars)
686,993
-4,018 +28,991
254,844
+1,867 +28,272
153,874
•
•
20,4]4
•
•
4,243
-795
-537
14,612
•
*
19,408
+355
+2,733
1,265
+167
-2,697
41,028
•
•
432,149
-5,880
+719
250,703
-6,101
-3,745
46,635
+1,245
+ 1,694
134,811
-1,024
+2,770
164,193
-760 +50,715
186,661
+4,084
-66,953
488,195 +17,032 +32,593
145,284
-287
+772
1,955
-1,692
-16,018
344,206
-15,674
- 8,108
Reserve Bank Operations
Federal Reserve note circulation of this bank, which
had fluctuated about a $160,000,000 level since the
first of the year, rose during the first week in June to
the highest level of this year. Circulation is about
13 per cent above that in June a year ago and almost
equal to the record high level of the holiday season last
December. Following an increase in April, total holdings of Government securities have remained unchanged,
Albuquerque, N. Mex ...... .
Atchison, Kans.................. .
Bartlesville, Okla .................
Casper, Wyo .....................:.
Cheyenne, Wyo .................. .
Colorado Springs, Colo...... .
Denver, Colo...................... .
Emporia, Kans ... ............... .
Enid, Okla.......................... .
Fremont, Nebr.·---·············
Grand Junction, Colo........ .
Guthrie, Okla...................... .
Hutchinson, Kans .............. .
Independence, Kans .......... .
Joplin, Mo .......................... .
Kansas City, Kans ............ .
Kansas City, Mo ..-.............
Lawrence, Kans...·-·············
Lincoln, Nebr.·---···············
Muskogee, Okla.... _............ .
Oklahoma City, Okla........ .
Okmulgee, Okla.·-···············
Omaha, Nebr.·-···················
Pittsburg, Kans.·-···············
Pueblo, Colo..---·················
Salina, Kans.·--···················
St. Joseph, Mo.·-··-·············
Topeka, Kans ..... .. ............. .
Tulsa, OkJa,.---···················
Wichita, Kans .....................
Change from
May 1937
Apr. 1937
May 1936
(In thousands of dollars)
14,748
+330
+3,641
3,357
-172
+370
29,929
5,535
8,508
13,714
169,657
3,463
10,022
2,621
3,875
1,669
12,766
2,658
9,926
15,016
325,615
3,483
28,635
7,634
108,012
2,790
142,397
3,704
16,446
8,662
24,410
15,843
159,194
46,267
+2,405
+88
-5
+202
-16,592
-19
-629
-45
- 74
- 104
-988
- 334
- 598
+79
- 9,629
-17
+452
-347
+296
+107
- 17,319
-265
- 5,502
-855
-3,228
-3,123
-2,474
- 3,958
+5,894
+507
+1,297
-191
+23,174
+201
+1,942
+38
+1,028
+328
+3,153
+493
+1,035
+2,540
+50,465
+526
+2,134
+234
+16,737
+71
- 3,105
+234
+3,597
+1,549
- 930
+358
+34,616
+6,145
District, 30 cities................ 1,200,556
United States, 141 cities.... 34,406,339
-62,318
- 2,726,995
+ 158,081
+1,181,585
FEDERAL RESERVE BANK OF KANSAS CITY
3
first five months of the year were nearly 11 per cent
greater. Sales of all lines except drugs increased,
Dollar volume of sales at reporting department furniture showing relatively the largest gain as in other
stores in the District showed an increase of 7½ per recent months. There was a decline of about 4 per
cent over May a year ago. This is the average rate of cent in total sales from April to May, reflecting a deincrease for the first five months of the year. Gains crease of 3 per cent in drug sales, 6 per cent in dry goods
were reported for nearly all cities, rather large increases and grocery sales, and 14 per cent in paper sales. Sales
occurring in Wichita and Tulsa. Sales increased about of furniture were little changed from April to May and
hardware sales increased about 5 per cent.
6 per cent from April to May.
The general level of wholesale prices, according to
Retail prices, according to the Fairchild Retail Price
Index, continued to advance during May for the eleventh the Bureau of Labor Statistics index, was slightly lower
consecutive month. Prices are now nearly 9 per cent in May -than in April but still was about 11 per cent
above a year ago and are at the highest level since higher than in May of last year. Wholesale prices of
early in the spring of 1931. The increase has been most chemicals and drugs are nearly 9, textile products 13,
housefurnishing goods 10, foods 8, and metals and
noticeable in prices of home furnishings.
Stocks of merchandise declined about 4 per cent dur- metal products 11 per cent higher than a year ago.
Wholesale sales and collections reported by the
ing May but were still nearly 12 per cent heavier than
a year ago. Collections on open accounts averaged Department of Commerce:
45.5 per cent of receivables in May, 46.7 per cent in
SALES
COLLECTIONS•
May '37 5 Mos. '37
April, and 45.1 per cent in May of last year. Install•
May Apr. May
No. of comp. to comp. to
ment collections averaged 14.2 per cent in May, 15.9
Firms May '36 5 Mos. '36
1937 1937 1936
(Per cent change)
(Median percentages)
per cent in April, and 15.6 per cent a year ago.
83.8 79.4 91.6
-0.6
+5.8
Drugs·········-·-···· 8
Department store sales and stocks in leading cities:
Dry goods_ ....... 4
47.0 45.8 47.0
+6.4
+16.8
Trade
DEPARTMENT STORE~
STOCKS
SALES
May '37 5 Mos. '37
May 31, '37
No. of comp. to comp. to
comp. to
Stores May '36 5 Mos. '36 Apr.30,'37 May 31,'36
(Per cent increase or decrease)
Denver.............. 4
+8.7
+10.7
-3.8
+13.6
Kansas City.... 4
+5.6
+6.4
-2.6
+9.1
Oklahoma City 3
+3.1
+3.4
+1.2
+9.9
Omaha.. _.... _._.... 3
-3.6
-0.9
-4.0
+7.6
Tulsa._.............. 4
+11.7
+11.1
-5.6
+11.3
+33.6
+ 17.0
-6.0
+11.6
Wichita ... ·---·-·-· 3
Other cities ...... 23
+8.6
+6.5
-6.6
+16.0
District....·-······- 44
+7.6
+7.6
-3.8
+11.5
RETAIL SALES
May sales of independent retail stores were above a
year ago in all states of the District except Nebraska.
Increases were general for nearly all kinds of business
and were especially noticeable in sales of dealers handling
furniture and household appliances, hardware, and
lumber and building materials. Total sales showed a
gain of about 8 per cent.
Sales of independent retail stores reported by the
Department of Commerce:
May 1937 per cent change from May 1936
Colo.-Wyo. Kans.
Mo. Nebr.
Okla.
AppareL._. __·-···················- +12.5 +4.9 +6.2 ~ · +8.9
Country general... ......._..... +2.6 +8.9 +7.2
+1.3 +18.2
Department·----··-····-·······- +11.2 +28.6 +9.0
-5.7
+4.6
Drug·-·--·-·-·-····--·-··--··-----·-·-· +6.5 +2.9 +5.3
-6.7
+3.0
Furniture and appliances +18.8 +40.5 +6.9
+2.9 • +4.0
Grocery __·-··-·--···---····-···--···· +11.3 +6.4 +5.9
+4.2
+6.8
Hardware·----············-···· --· +23.1 +18.3 +4.2
+0.7 +14.8
Lbr. and bldg. rntls·---····· +22.7 +7.3 +13.1
-2.2 +14.5
Motor vehicle·-······-·-········· +1.4 +34.2 +9.2
-1.5
+1.6
*Furniture sales only.
I
WHOLESALE SALES
The value of May wholesale sales was about 8 per
cent greater than a year ago while total sales .for the
Furniture·-·····-· 4
Groceries .. ··-····· 12
Hardware·---··· 4
rif~fiier.iI;;;:: 1~
+19.6
+4.7
+1.4
+0.4
+20.2
+21.4
+7.4
+1.7
+8.4
+18.9
67.0 49.7
100.0 100.0
49.8 47.9
73.3 68.7
76.0 76.6
47.5
98.0
53.1
63.6
70.2
District·---······· 56
+7.9
+10.8
74.7 78.1 71.4
*Collections during month on receivables at beginning of month.
Crops
The last official estimate before harvest indicates a
winter wheat crop in the District of about 291 million
bushels, which is one.fourth larger than a year ago.
While the recent rains have undoubtedly brought about
some improvement since this estimate was made, large
acreages in western Kansas and adjacent areas of other
states were already beyond recovery. Hail and insect
infestation have caused some damage to the crop in
Oklahoma and Kansas, but any material damage from
black stem rust, which has been observed in Kansas and
Nebraska, will likely be confined to late wheat, most of
the crop being sufficiently matured. Wheat harvest had
begun in the southern part of the District late in May
but was soon delayed by the rains.
Wheat estimates of the Department of Agriculture:
Colo.. ~.·-····-··
Kans_.............
Mo.·--···········
Nebr ..........._.
N.Mex .........
Okla.·---·······
Wyo.·---·······
Indicated
Final
Final
June 1
Mayl
1936
1935
(In thousands of bushels)
9,664
9,664
5,915
2,380
142,264
162,588
120,198
63,947
43,624
42,066
31,290
25,662
42,620
42,620
45,639
35,620
2,460
2,460
1,156
750
48,939
51,164
27,620
33,080
1,080
1,080
513
1,250
't States........ 290,651
U.S.·-··········· ~8,597
311,642
654,295
231,725
619,013
162,994
466,319
Aver.
'28-'32
13,051
177,054
20,343
54,169
3,766
55,145
1,608
325,136
623,220
REVIEW OF AGRICULTURAL AND BUSINESS CONDITIONS
4
Heavy and extensive rains in the last week of May be better than usual, very little frost damage having
and the first two weeks of June have materially im~ occurred this spring.
proved prospects for pastures and for crops still grow- Grain Marketing
ing and will promote the planting of late crops. · Up
Marketings of grains were generally in small volume
to the latter part of May there had been"considerable
in May. Receipts of wheat represented but 39 and corn
loss of winter wheat in the District, particularly in
32 per cent' of the ten-year average for that month,
western Kansas, and early crops and pastures had a
but oats exceeded the average by 14 per cent. First
poor start. Growing conditions are excellent but field
arrivals of new crop wheat from Oklahoma in the forework was interrupted. The outlook for irrigation
part of June are generally of good quality except for
water is now quite favorable.
excessive moisture.
,
Rainfall as reported by the Weather Bureau:
Receipts of grain at· 5 markets in the District:
May 1937
Total Normal
COLORADO
---un
2.21
5 Mos.1987
Total Normal
inches-)4.45
6.24
7.38
7.66
4.28
3.09
2.42
5.71
1.87
1.87
3.26
3.67
. Wheat
Wichita.·--·-········
421
1,307
476
72
499
May 1937._ __ ···-·
April 1937 ___ ·--·-··
May 1936·-----··
6 Mos. 1937...___
6 Mos. 1936____
2,775
3,637
3,019
18,946
18,013
Hutchinson ........
Kansas City···--·
Omaha ..... ·---·-···St. Joseph··-··--·--
Com
Oats
Rye Barley Kafir
(In thousands o!bush~
4
50
66
180
577
91
458
686
35
98,
28
3
66
7
4
Denver____ ··-------------·
Leadville ......... __ . ___ .
Pueblo........·-·········-·
Lamar·--··-··----·--··---Garnett·------·------·---Sunbeam·-·---·---·--·---
1.46
1.79
.70
.77
1.12
.73
Topeka·----··-···--·-··---·
Iola. __·······-·--···-·-·-·---·
Concord.ia_·------·-····-Salina·-·---·-·--·-·-----·---·
Wichita·--·-------·--···-··
Hays. ___ ···-··--·----···-·-Dodge City___·---··-·-·
Elkhart._ __ ·--··-·--··--··
Goodland __ ··-··--·-···-·
3.12
6.27
1.86
4.01
4.13
1.49
1.64
.90
.58
4.48
·4 .74
4.18
3.72
4.46
3.46
2.89
2.08
2.60
9.36
16.10
6.57
7.95
9.77
3.63
4.59
2.03
3.86
11.81
14.03
9.26
9.28
11.15
7.88
6.9()
5.52
6.34
St. Joseph __ .___;_··-·-·
.Kansas City______ __ ··-Joplin·-··--····-··-·-····-···
3.93
3.63
4.37
4.70
4.65
6.36
10.65
12.10 .
16.47
13.32
13.26
17.10
Omaha·-------------··-··Lincoln·----·---·-----·---Norfolk_ ______ ·----·-··Grand Island ____·-··
McCook
North Platte.. _.____.:::
Bridgeport_________··-- ..
Valentine·--------·---····NEW MEXICO
Clayton. _________________
2.46
1.89
2.48
6.27
2.27
.64
3.11
1.72
3.77
3.93
4.27
3.95
2.86
2.80
2.82
2.73
7.09
7.07
8.59
9.13
6.27
3.74
4.56
4.03
9.24
9.32
9.63
9.07 ·
6.60
6.70
6.63
6.88
June 15
1937
No~ 1 hard, dark wheat, bu. $1-:IT"'
No. 2 mixed com,. bu ....... -1.18
.49
N o. 2 white oats, bu.·-·····-.85
N o. 2 rye, bu.·-··-·-·-···········-·
.68
No. 2 barley, bu,.·-···---··---No. 2 white kafi.r, cwt ......_
2.60
4.68
3.97
.35
2.44
1.26
.41
5.70
6.52
3.15
5.64
4.48
3.05
Live Stock .
1.30
1.60
2.28
.67
1.15
KANSAS
MISSOURI
NEBRASKA
Santa
Fe·-----------·--··
Farmington
________ .. _
OKLAHOMA
~
Tulsa_____
_
McAlester__________ .____
Oklahoma City______
Pauls Valley_________ . __
Hobart
Enid. _______
Woodward _________ . __
2.30
7.32
1.82
2.84
3.30
3.60
2.58
5.23
5.97
4.88
5.20
4.64
4.34
3.51
12.66
20.18
6.96
11.52
7.33
7.19
6.48
1.19
2.29
2.23
2.39
2.43
2.47
2.26
2.65
5.61
7.44
6.82
7.78
15.96
18.71
12.45
14.27
11.04
11.44
9.11
WYOMING
Cheyenne_____·----·--·-·Casper____
.
:Lander-----------·-------Sherida
6.50
7.18
6.70
7.28 ,
Oats, which were planted late and under rather poor
soil moisture conditions, and other small grains have
improved since the rains. Early planted corn is up to
a good stand and is being cultivated. Progress and
condition of cotton in Oklahoma is fair to good although
plants are late and considerable replanting has been
nee~ in the western portion of the state. The
first cutting of alfalfa gave only a moderate yield, reflecting drought and the late spring, but the rains will
help the se~ond cutting. Prospects for fruit appear to
1,105
1,396
3,245
8,818
18,215
964
1,002
778
6,971
5,157
38
43
61
167
293
185
238
291
616
1,202
61
64
109
343
564
Cash prices of nearly all grains declined at the Kansas
City market during May and the first two weeks of
June, reflecting a downward adjustment to a new crop
basis in the case of wheat and abundant supplies of
green feeds in the case of corn .
Cash grain prices at the Kansas City market:
May29
1937
$1.24½
1.34¼
.51
.96
.79
2.49
Apr. 30
1937
$1.33½
1.38
.56
1.10
. •87
2.36
May29
1936
$ .88
.60½
.25½
.52
.45
1.10
:MARKETINGS
Marketings· of cattle, calves, and sheep increased
during May and were substantially heavier than a year
ago but hog receipts declined sharply, reaching a new
low level. Large numbers of southwestern lambs again
were a factor in heavy sheep receipts. Marketings of
cattl~ and sheep approximated the average volume for
May during the past ten years while calf receipts continued much above the average. Marketings of hogs
were ·only one-fourth of the average volume.
Live stock receipts at 6 markets in the District:
Denver·-······················Kansas City·-··············
Oklahoma City............
Omaha.-·--········-··-·····-··St. Joseph_·-·················
Wichita.·--···-·················
Cattle
46,075
109,375
48,598
82,117
24,435
28,211
338,811
May 1937._ __ ·····---··-····
301,149
April 1937 ......·-·-··········
276,356
May 1936·---··-··--·--····5 Mos. 1937._ ____-___ ·-··-· 1,675,915
5 Mos•.1936
1,604,596
Calves
4,642
23,959
10,880
10,290
8,563
6,245
Hogs
19,868
66,495
22,540
69,833
30,477
18,740
Sheep
150,072
217,942
31,418
131,937
76,990
39,130
64,679
217,943 I 647,489
642,580
58,435
315,465
46,962
360,911
574,470
319,500 1,767,368 3,000,246
265,792 2,190,395 2,905,088
FEDERAL RESERVE BANK OF KANSAS CITY
5
PRICES
crops. Summer feed prospects are good in Oklahoma
Hog prices advanced sharply at the Kansas City and on higher and mountain ranges generally.
market in May, terminating a five-month period of
Cattle and sheep on ranges a.re in good condition and
unusually stable prices due largely to the accumulation showed fair to good gains during May in areas of better
of storage stocks of pork and lard. Hogs reached feed. In drought sections, the condition was only fair
$11.75 per hundredweight, the highest May level in and gains were limited in May by the slow growth of
eleven years and 20 cents above the 1936 peak in last grass. New Mexico and Wyoming have good calf and
August. The average price of stocker and feeder steers lamb crops.
Shearing of wool is well under way in New Mexico,
also rose to the year's high, showing a wide margin over
May prices in other years since 1930. Fat cattle prices, with most of the 1937 clip already contracted for at
which were slightly lower for the month, are still below prices above those of recent years. Prices in Colorado
two years ago, reflecting principally the difference in range from 28 to 36 cents per pound.
quality of offerings. Sheep and lamb prices· declined
The spring movement of cattle to the Blue Stem
seasonally but lambs were higher than in any other pastures of Kansas and Osage pastures of Oklahoma
May since 1929. During the forepart of June, cattle was about 6 per cent larger than a year ago but smaller
prices tended upward and hog and lamb prices down- than in past years. Pastures are fully stocked, due
largely to the highest acreage guarantees of record.
ward.
Although the movement started somewhat later than
Top prices for May at the Kansas City market:
1937
1936
1935
1934 usual, marketings are expected to be a little early be(In dollars per hundredweightj cause cattle are in good flesh and weedy pasture feeds
12.65
8.80
13.00
8.75 are likely to mature early.
Beef steers................... .
Stocker cattle............. .
Feeder cattle............... .
Calves·----···················
Hogs·- ···························
Sheep ........................... .
Lambs ........ ................. .
9.25
11.00
9.50
11.75
7.75
13.25
8.00
8.26
9.50
10.10
8.00
12.25
9.10
10.25
9.50
9.80
6.16
9.65
6.10
7.40
6.50
3.45
8.00
11.76
STOCKERS AND FEEDERS
Shipments of stocker and feeder cattle and calves
from four markets in the District were substantially
heavier in May than a year ago, cattle exceeding the
May ten-year average by 15 per cent and calves approximating the average volume. Shipments of hogs and
sheep were much lighter than in May of last year, hogs
falling 66 and sheep 15 per cent below the average.
Stocker and feeder shipments from 4 markets:
Cattle
14,655
43,166
10,619
4,137
Calves
Hogs
Denver·-·······················
Kansas City................
Omaha..........................
St. Joseph ...................
~
4,286
2,693
465
142
1,970
695
. 848
Sheep
4,259
18,620
26,730
8,600
May 1937.---···············
April 1937 ....................
May 1936·---···············
5 Mos. 1937.__.............
5 Mos. 1936·--·············
72,577
60,874
42,618
302,188
275,793
8,342
7,205
7,249
40,595
33,000
3,666
3,642
4,787
16,238
19,654
68,209
40,138
100,558
228,970
248,nl
RANGES AND PASTURES
Ranges and pastures, which had made slow growth
during May, are greatly improved by late May and
early June rains. Except in Wyoming and New Mexico,
range conditions on June 1 were considerably below
either a year ago or the avera.ge condition for that date.
Recent rains have broken the drought in western
Nebraska and eastern Wyoming and have given much
needed moisture to drought areas of western Kansas,
eastern Colorado, western Oklahoma, and eastern New
Mexico. Moisture was especially beneficial in .that it
will permit the pla:nting __of intended acreages ..offeed
Farm Income
April receipts from the sale of.principal farm products
were larger than a year ago in all states of the District
except Oklahoma, the decrease for that state being
accounted for largely by a smaller volume of cotton
marketings. ihese increases reflected principally higher
prices received for potatoes and wheat in Nebraska,
Kansas, and Missouri and larger receipts from meat
animals and dairy and poultry products in Wyoming,
Colorado, and New Mexico. Including Government
payments, total income this year is about 17 per cent
greater than in either of the past two years.
Income estimates of the Department of Agriculture:
· ··
·
Crops
Colorado......... .
Kansas ..............
Missouri_.........
Nebraska..........
New Mexico ... .
Oklaaoma ....... .
Wyoming......... .
2,554
5,449
2,140
4,794
187
1,243
316
April 1937........
March 193L...
April 1936........
4 Mos. 1937.___
4 Mos. 1936.:.._~
16,683
19,185
8,806
72,945
46,973
Live stock
Govt.
and products payments
(In thousands of dollars)
9,529
1,002
13,500
3,314
Total
15,226
15,246
1,690
7,306
2,417
2,555
3,197
813
1,190
286
13,085
22,263
19,921
23,237
2,690
9,739
3,019
64,914
59,184
64,226
230,499
243,304
12,357
20,650
10,907
53,312
14,296
93,954
99,019
83,939
356,756
304,673
Since last January, farm prices have averaged slightly
lower than prices paid by farmers, the ratio being 96
per cent at the middle of May. A year ago this ratio
was 85 per cent.
Meat Packing
Packers' purchases of live stock during May indicated
much heavier calf and sheep slaughter and substantially
lighter hog sl~ughter than a year ago. Supplies of hogs
being. exceedingly light,.slaughter was 72 per cent below
REVIEW OF AGRICULTURAL AND BUSINESS CONDITIONS
6
the ten-year average for May and was even lower than
two years ago following the 1934 drought. Cattle
slaughter was 13 and sheep 11 per cent below the
average, but calf slaughter exceeded the average by
31 per cent.
Packers' purchases at 6 markets in the District:
Denver_____________ ________ __ ___
Kansas City __________ ______
Oklahoma City______ _____ _
Omaha __________ ·-···'··········
St . Joseph ··········-········Wichita _________ ______ ·----·---
Cattle
16,335
40,188
27,357
57,603
16,716
11,441
May 1937_______ ··----·----··-Apdl 1937.. .. ---·---·-·-----·
May 1936________ ··-------- ··5 Mos. 193L_··--·--··-·-··
5 Mos. 1936_·-···---·-·------
169,640
164,969
168,669
882,610
952,074
Calves
3,560
18,820
4,981
6,701
7,968
6,683
Hogs
18,241
61,510
18,374
52,583
28,741
17,740
Sheep
19,083
132,184
19,800
84,459
65,138
30,848
48,713
19'(',189
351,512
47,242
285,432
357,808
34,245
312,247
258,305
251.,320 1,566,738 1,757,369
212,019 1,831,674 1,665,711
Cold Storage Holdings
United States cold storage stocks of meats and poultry
declined at a much faster rate than usual in May, but
stocks of most commodities are still relatively large.
As in April, stocks of lard declined contraseasonally.
Eggs moved into storage at about the usual rate but
accumulations of butter and cheese were smaller than
usual.
United States cold storage holdings:
June l
1937
Beef, lbs.·-·-·----·---·----·----·-Pork, lbs.·--·-··-----·--···-·······
Lamb and mutton, lbs...
Poultry, lbs ..... .........._._ ..
Miscellaneous meats, lbs.
Lard, lbs.·-········-·-·······--····
Eggs, shell, cases............
Eggs, frozen (case equiv.)
Butter, creamery, lbs.....
Cheese, all varieties, lbs.
86,113
663,963
2,948
82,448
83,473
195,077
7,292
3, 792
22,797
84,930
May 1
June 1
June 1
1937
1936
5-Yr.Av.
(In thousands ofunits)
111,663
61,134
44,679
756,354
440,618
610,404
4,574
1,282
1,665
94,888
41,926
42,391
99,431
57,435
56,577
209,444
99,656
122,176
4,405
5,707
6,667
2,520
2,686
2,588
6,406
21,167
29,147
83,096
70,783
59,923
Flour Milling
Southwestern flour production during May declined
sharply from the rather high level of April, operations
being reduced from 73 to 66 per cent of capacity because of decreased shipping directions and a somewhat
more than seasonally dull period of flour sales. However, output still was about 10 per cent greater than in
May of last year and showed an increase of better than
15 per cent for the first five months of the year.
Flour production reported by the Northwestern Miller:
May 1937
Atchison·--·······-·--··-·--····-·---·
Kansas City·····-·-··------·------·
Salina................. ·-···-··-·······--·
Wichita ........·-··-····-··········-···
Other cities ..................·-···-··
109,000
677,000
173,000
178,000
934,000
Change from
April 1937
May 1936
(In barrels)
-24,000
-7,000
-65,000
+100,000
-13,000
+20,000
-50,000
+26,000
- 133,000
+39,000
Southwest ........... _................
1,971,000
- 285,000
+ 178,000
United States*.. ..................
5,021,000
- 293,000
-58,000
•R~presents about 60 per cent of total output in United,States. ·
Although lagging behind a year ago, sales contracts
for new crop flour became more general toward the close
of the month and picked up considerably early in June
as flour prices declined. Mills are reluctant to quote
new crop prices at a discount in view of the comparatively high price of millfeeds. Millfeed prices were
bolstered by Government purchases around the middle
of May for use in grasshopper control, but prices later
declined, reflecting growth of pastures and new feed crops.
Petroleum
Daily average production of crude petroleum in the
District receded in May from the near-record level of
April and latest reports indicate some further decline in
June. Only in July, 1927, when output reached 1,048,000
barrels daily, has the April figure been exceeded. Current production is about 20 per cent above a year ago
and 29 per cent over the average for the past ten years,
reflecting general field activity. The high level of production is resulting in efforts to curtail output in order
to avoid a market situation dominated by excess inventories.
Oil production reported by the American Petroleum
Institute and the Bureau of Mines:
MAY 1937
Gross D. Av.
Colo..-...
Kans.....
N. Mex.
Okla....-.
Wyo .. __.
122
6,093
3,481
20,264
1,637
APRIL 1937
MAY 1936
Gross D. Av.
Gross D. Av.
(In thousands of barrels)
4.0
136
4.5
142
4.6
196.5
6,026
200.9
4,823
155.6
112.3
3,147
104.9
2,331
75.2
653.7
20,416
680.6
17,842
675.6
52.8
1,537
51.3
1,101
35.5
5 States 31,597 1,019.3
U.S.·-··· 105,323 3,397.5
31,262 1,042.2
104,979 3,499.3
26,239
846.5
93,739 3,023.8
Stocks of crude petroleum in Oklahoma and Kansas
rose further from 122,454,000 barrels on May 1 to
126,054,000 barrels on June 5, while stocks in the
Rocky Mountain area declined from 25,632,000 barrels
to 25,158,000 barrels in the same period. Mid-continent refinery operations are expected to reach a record
high in June.
Coal
Following a substantial decline in production in
April occasioned by an accumulation of stocks, output
of bituminous coal in the District increased in May.
Production in May was 4 per cent greater and during
the first five months of the year 9 per cent greater than
in the same periods of last year.
Coal output estimated from Bureau of Mines reports:
May 1937
Colorado.................. _..... ·-····
Kansas and Missouri...·--···
New Mexico............·-··-····-··
Oklahoma.. ................. _......_.
Wyoming···················-··········
382,000
319,000
120,000
26,000
267,000
Six states..................-............ 1,114,000
United States.... ...-............... 29,980,000
Change from
Apr. 1937
May 1936
(In tons)
+81,000
+98,000
+104,000
-15,000
-7,000
+21,000
- 9,000
+7,000
-20,000
-50,000
+165,000
+ 3.,970,000
+45,000
+1,296,000
FEDERAL RESERVE BANK OF KANSAS CITY
7
in April but continued to show a substantial increase
Zinc and lead shipments from the Tri-State district over last year. For the first five months of the year,
declined further in May. Output also tended to decline, permits were 21 per cent greater in number and 32 per
the number of active mills being reduced from 73 in cent greater in value than a year ago.
Building permits reported by eighteen cities:
the third week of the month to 67 in the first week of
PERMITS
ESTIMATED CosT
June. Demand continued slack for zinc concentrates
1936
1937 1936
1937
but held fairly steady for lead, shipments of which were Albuquerque, N. Mex ... 105 ~ $ 179,000 $ 368,000
144,000
86
74,000
61
substantially above a year ago.
Cheyenne, Wyo.·-···········
Colorado Springs, Colo...
42
104,000
42,000
86
Shipments estimated from Joplin News Herald reports: Denver,
Colo................... 565 414
1,015,000
485,000
Zinc and Lead
ZINC ORE
Kansas ............. .
Missouri. ..........
Oklahoma ....... .
Tons
Value
11,897 $ 489,738
3,581
147,437
21,042
866,112
May 1937._ __ ···
April 1937........
May 1936·-·······
5 Mos. 193L...
5 Mos. 1936.__.
36,520 $1,503,287
41,839 1,830,042
34,519 1,104,641
199,589 8,204,706
188,184 6,020,288
LEAD
Tons
1,724 $
529
3,148
ORE
Value
117,693
36,120
214,970
5,401 $ 368,783
5,798
418,168
3,800
190,000
27,134 2,041,073
21,191 1,038,625
Following rather sharp declines in April, ore prices
were unchanged in May and the first two weeks of June
at $45 per ton for zinc and $70 per ton for lead. Comparable quotations a year ago were $32 and $50, respectively.
Employment and Pay Rolls
Employment and pay rolls in the District as a whole
tended to increase from the middle of April to the
middle of May. So far this year employment is about
7 per cent larger and pay rolls nearly 10 per cent
larger than a year ago.
Preliminary figures of the Department of Labor:
Colorado ..................... ............................ .
Kansas..................................................... .
Missouri................................................... .
Nebraska ................................................ .
New Mexico ............................................
Oklahoma ....... .........................................
Wyoming ............................ ·-···················
May 1937
per cent change from
April 1937
Employment
Pay Rolls
+1.4
+8.6
+2.4
+1.8
-1.1
-2.4
+0.7
+2.2
- 0.1
-1.4
+2.0
+3.1
- 0.2
- 0.6
Hutchinson, Kans ...........
Joplin, Mo .................. .....
Kansas City, Kans ........
Kansas City, Mo .............
Lincoln, Nebr ...................
Oklahoma Cil-y, Okla .....
Omaha, Nebr ...................
Pueblo, Colo.......... ..........
Salina, Kans.·- ·················
Shawnee, Okla .................
St. Joseph, Mo .................
Topeka, Kans ............ ....
Tulsa, Okla.·--·················
Wichita, Kans .................
137
23
60
299
165
230
191
83
15
14
24
120
127
258
89
18
44
231
179
192
147
54
20
20
55
87
83
193
----
May.................................. 2,663 2,015
April_............................... 2,827 2,300
Five months .................... 9,665 7,995
148,000
40,000
67,000
423,000
423,000
690,000
269,000
31,000
36,000
14,000
21,000
186,000
438,000
301,000
83,000
23,000
80,000
229,000
83,000
277,000
232,000
24,000
48,000
21,000
31,000
185,000
214,000
203,000
$ 4,459,000 $ 2,772,000
5,939,000
3,418,000
20,127,000 15,281,000
Lumber
Board feet sales of lumber at reporting retail yards
increased further. in May, rising 19 per cent above sales
in May of last year. . As a result of this large increase,
total sales so far this year are now up to the level of a
year ago.
· May collections averaged 37.4 per cent of outstandings at the beginning of the month as compared with
43.1 per cent in the preceding month and in May of
last year.
Lumber trade at 156 retail yards in the District:
Sales of lumber, board feet....................... .
Sales of all materials, dollars .......... :........ .
Stocks of lumber, board feet ................... .
Out.standings, dollars._ .............................. .
May 1937
per cent change from
April 1937
May 1986
+5.6
+19.1
+4.4
+24.3
+0.7
+12.0
+13.1
+28.4
Building
Life Insurance
Following a substantial increase in April, awards for
non-residential construction in the District declined
sharply in May, falling a third short of a year ago.
Nevertheless, total awards are still about 12 per cent
greater so far this year because of the consistent improvement in residential building.
Construction figures of the F. W. Dodge Corporation:
May sales of new paid-for ordinary life insurance in
the seven states, all or parts of which comprise this
District, showed a gain of only 2 per cent over a year
ago while total sales this year have increased about 5
per cent.
The Life Insurance Sales Research Bureau report :
37 EASTERN STATES
Total Residential
Total
Residential
(In thousands of dollars)
3,298
244,113
8,816
83,937
4,237
269,934
17,237
108,013
10,889
2,734
216,071
70,253
53,062
17,474
1,176,653
423,528
10,578
996,748
47,358
261,290
Colorado......................... .
Kansas ............................. .
Missouri.......................... .
Nebraska......................... .
New Mexico ................... .
Oklahoma........................
Wyoming._ ...................... .
Change from
May 1937 April 1937
May 1936
(In thousands of dollars)
6,139
-814
+993
7,724
- 1,040
+256
19,498
- 2,156
+588
6,440
+70
- 1,551
1,068
- 237
-105
9,208
- 234
+739
1,064
- 225
+43
Seven states._ ..................
United States..................
51,141
630,690
TENTH DISTRICT
May 1937..._.
April 1937....
May 1936·--·
5 Mos.1937..
5 Mos. 1936..
Permits for new construction, alterations, and repairs
in eighteen cities of the District were less in May than
-4,636
- 61,372
+ 963
+ 36,893
REVIEW OF AGRICULTURAL AND BUSINESS-CONDITIONS
8
NATIONAL SUMMARY -OF BUSINESS CONDITIONS
By the Board of Governors of the Federal Reserve System
INDUSTRIAL PRODUCTION
PERCENT
P[OCENf
140
140
130
1:,0
-\
A
120
110
"'\ 'ii\ I\A
"~\rvI \
100
~
~
ro
~
V
r
/i'I
pr
120
110
~
~
V
I
ro
~
•
~
~
lnlt
1190
1931
1932
1933
1934
1935
1936
1937
Index of physical volume of production, adjusted for sea sonal variation , 1923-1925 average
100. By months, January, 1929, through
May, 1937.
=
FACTORY EMPLOYMENT AND PAYROLLS
PUIC£NT
120
110
100
90
80
70
60
so
40
:,0
1929
1930
1931
1932
1937
1933
Indexes of number employed and pay rolls,
without adjustment for seasonal variation, 19231925 average
100. By months, January,
1929, through May, 1937. Indexes compiled by
the United States Bureau of Labor Statistics.
=
100
80
Value of construction contracts awarded in May was smaller than in April,
according to figures of the F. W. Dodge Corporation. There were declines in
awards f<;>r residential and ·other privat-e projects, -while contracts for public projects increased. In the first half of June awards for both private and public work
were at a somewhat higher rate than in May.
Factory employment, which usually declines at this season, showed little
change from April to May and the Board's adjusted index advanced somewhat
further. Employment in the durable goods industries continued to increase while
employment in other lines declined· seasonally. Factory pay rolls remained at
the _April level, following sharp increases in earlier months.
P[R C£NT
~
110
L - j - - - - + - - - - - - - + - - - - + - - -+------1 100
! __
, _c~om;;;;m;;,;o;;;;;di;,;,;;1'e. _s~!¢il~~~#-4"---1 eo
I
1·
L_
l_
~r-.·
3ol_ -~
Foods
~
,:._ "'./- - - + - - -+ - ----t 70
,_.. •.
µ .:
·so
_:.._,)F~•~~-~--"-:-rod_u_c1-s -+-------+---+----1 so
:lO :\·,.,,_,,··.,:•,
40
40
1932
1933
COMMODITY PRICES
90
Other
10 ..
60
In May the Board's seasonally adjusted index of industrial production remained unchanged at 118 per cent of the 1923-1925 average. Output of iron,
steel, automobiles, and lumber increased further . . At cotton and woolen mills
and at shoe factories activity continued at a high level, while at silk 'mills, meatpacking establishments, and sugar refineries there were considerabie decreases.
Crude petroleum_ production continued to rise and output of bituminous coal
increased somewhat, following a sharp decline in April. Shipments of iron ore
in May were larger than in the corresponding month of any previous year. In
the first three weeks of June automobile production declined seasonally and, largely
owing to labor disturbances, steel output was reduced to 77 per cent of capacity
as compared with 90 per cent in May. .
Distribution of commodities to consumers continued in May at the level of
other recent months. Sales at department stores and at variety stores showed
a seasonal .rise and mail-order sales were maintained.
WHOLESALE PRICES
rFRCf.NT
110 , -
PRODUCTION, EMPLOYMENT, AND TRADE
100
V
"
Volume of industrial production in May continued at the level of the two
preceding months. Commodity prices declined slightly in May and the first three
weeks of June.
Between the middle of May and the third week of June, prices of grains, except spring wheat, declined considerably and there were smaller declines in ,cotton,
cotto~ ·goods, wool, rubber, and steel scrap, while prices of most other commodities ·showed little ch_ange.
BANK CREDIT
30
1934
1935
1937
1936
. Exc~s reserves of member banks, which . had been about $900,000,000 after
the lY-fay 1 increase in reserve requirements, declined by about $180,000,000 during
the week ending June -16, in connection with Treasury operations, but increased
in subsequent days an.d on June 23 were at a level of $810,000,000.
Indexes compiled by the Uriited States Bureau
of Labor Statistics, 1926
100. By weeks,
1932 ·to date. Latest figu re is for week · ending
June 19, 1937.
=
MEMBER 13ANK RESERVE BALANCES
liLLIOHS OF DOLLARS
BIL\.J ONS Of'. DOLLAfllS
8
8
At reporting member banks in leading cities holdings of United States Government obligations, after several weeks of little change, increased sharply during the
week ending June 16, reflecting purchases of the new issues of Treasury notes.
Commercial _loans at member banks continued to increase in the four weeks
ending June 16. This increase was largely at banks in New York City, which
also showed ·a growth in loans to other New York banks and to brokers and dealers
in secudties.
MONEY RATES
1932
1934
1935
1937
Wednesday figures of total member bank reserve balances at Federal Reserve banks, with
estimates of required reserves, January 6, 1932,
throuirh June 23, 1937.
The open-market rate on 90-day bankers' acceptances, which had been reduced from 9/16 to 1/2 of 1 per cent on May 7, was further reduced to 7/16 of 1
per cent on June 22. Other money rates have shown little change in recent weeks.
@FedFRASER