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THE MONTHLY REVIEW Of Agricultural, Industrial, Trade and Financial Conditions in the Tenth Federal Reserve District FEDERAL Vol. 17 RESERVE KANSAS J CITY, BANK KANSAS Mo., MARCH 1, 1932 ANUARY weather conditions were unfavorable to the advancement of preparations for the approaching new crop season and muddy roads were a contributing factor to a reduction in the volume of merchandise moving into consumption. Dollar sales of thirty-five department stores declined 55.3 percent in January as compared to December, against a fiveyear average decline of 5r.5 percent, and were 25.9 percent below January, 193r. Contrary to the normal tendency, sales at wholesale declined 13.1 percent in January, and were 28.4 percent below a year ago. Department stores reduced their stocks slightly during the month but wholesalers' stocks increased somewhat. The farmers' purchasing power declined further during the month, due primarily to sharp declines in the farm price of eggs, milk, and butter fat, and the failure of other products to show any sustained strength in price. Production of flour, crude oil, bituminous coal and cement declined as compared to the preceding month and was somewhat below January, 193r. Zinc ore shipments declined, but lead ore shipments increased sharply and were more than twice as large as a year ago. Building activity was seasonally dull. Marketings of wheat were unusually heavy for January but marketings of all other classes of grain were unusually light. This was particularly true of corn, the new crop movement of which has so far failed to arrive at terminal markets in anything like normal volume. Receipts of cattle and calves and horses and mules at Tenth District markets in January were the lightest in years, whereas, those of sheep and lambs were the heaviest. Hogs, •including direct shipments to packers' yards, which were the heaviest of record, were in about normal supply. Packers took a larger proportion of all offerings, except hogs, than in either the preceding month or the corresponding month last year. Estimates of the United States Department of Agriculture as to the numbers and value of livestock on farms January 1, 1932, compared to the like date in preceding years, disclose an increase in numbers, all species combined, for both the United States and this District and sharp declines in values of all species. The average per head decline in values was even more pronounced during 1931 than in the preceding year, amounting for this District to 34.9 for last year and 26.0 percent for 1930. Banking and Credit OF CI TY No. 3 BUSINESS IN THE TENTH FEDERAL RESERVE DISTRICT Percentages of Increase, or Decrease (-), for January 1932 over December 1931 and January 1931. January 1932 Compared to Banking December 1931 January 1931 Payment by check, 29 cities_ _ _ _ _ _ 2.8 - 26.7 Federal Reserve Bank clearings - 11.9 - 27.3 Loans, 54 member banks 4.4 - 19.1 Investments, 54 member banks______________ 1.7 5.7 N et demand deposits, 54 member banks______ 7.2 - 19.7 Time deposits, 54 member banks l .7 6.9 Savings deposits, 50 selected banks 0.4 7.2 Savings accounts, 49 selected banks_____________ o.6 1.8 Distribution Wholesalers' sales, 5 lines combined ____________ _ - 13.1 - 28.4 Retailers' sales, 35 department stores_________ _ - 55.3 - 25.9 Lumber sales, 166 retail yards_ _ _ __ ..,.:- 6.2 - 44.7 Life insurance, written _ _ _ _ _ __ - 27.1 3.1 Construction Building contracts awarded, valu.____ __ - 49.9 Building permits in 17 cities, value _ __ - 40.0 Production 1.7 7.9 Flour - - - - -- -- - - - - - Crude petroleum _ _ _ _ _ _ _ __ - 16.1 8.7 Soft coal _ _ _ _ _ _ _ _ _ _ __ - 11.7 9.1 Zinc ore (shipped) Tristate District _______ - 36.5 - 53.5 Lead ore (shipped) Tristate District________ _ 271.1 110.3 Cement _ _ _ _ _ _ _ _ _ _ __ - 23.8 0.7 Grain receipts, 5 markets Wheat _ _ _ _ _ _ _ _ _ _ _ __ 20.4 Corn - 83.9 8.6 Oats Rye - 58.5 Barley 21.7 Kafir - 35.3 Livestock receipts, 6 markets 2.8 - 10.4 Cattle - 22.9 Calves - 33.7 0.2 Hogs 13.7 12.0 Sheep 4.4 Horses and mules _ _ _ _ _ _ _ _ _ 1 82.7 - 40.4 Meat packing, 6 cities 12.6 5.8 Cattle - 20.1 Calves 7.5 o.6 12.5 Hogs ---------- - - - - · - - - - - 12.8 Sheep 13.3 Stocker and feeder shipments, 4 markets Cattle - 52.9 - 39.5 Calves _ _ _ _ _ _ _ _ _ _ _ __ - 62.0 - 50.5 Hogs 7.2 - 44.3 2 Sheep - 41.5 - 4 •9 increased 0.9 percent since December 30, but this increase was more than offset by a 6.4 percent decline in "all other" loans. Investment holdings of the reporting banks were r .7 percent smaller on February IO than six weeks earlier, but 5.7 percent larger than on the corresponding date last year. Investments in United States securities declined 2.1 percent in six weeks, but increased 25.7 percent in fifty-two weeks, whereas, investments in other bonds, stocks, and securities declined r.2 and 9.r percent, respectively. . MEMBER BANK OPERATIONS: Outst:anding loans of fifty-four reporting member banks in selected cities of this District declined 4.4 percent during the initial six weeks of the new year, and on February IO were 19.1 percent below the amount reported February II, 193r. Loans secured by stocks and bonds This Copy Released For PublicationJn Morning Newapapers February~29. THE MONTHLY REVIEW Net demand deposits declined 7.2 percent in six weeks and on February IO were 19.7 percent smaller than one year earlier. Time deposits declined 1.7 percent in six weeks and 6.9 percent during the year. The principal resource and liability items of the fifty-four reporting member banks are here presented as of the three dates of comparison: Feb. 10, 1932 Dec.30, 1931 Feb.11,1931 Loans and investments-total _ ___ $575,325,ooo $594,055,000 $634,526,000 Loans and discounts-total_ ____ ____ 311,407,000 325,684,000 384,825,000 Secured by stocks and bonds____ 89,901,000 89,066,000 105,517,000 All other loans and discounts __ __ 221,506,000 236,618,000 279,308,000 Investments-total - - - - - 263,918,000 268,371,000 249,701,000 U. S. securitie..,__ _ _ _ _ 133,319,000 136,246,000 106,073,000 Other bonds, stocks, and securities _ _ _ _ _ _ _ 130,599,000 132,125,000 143,628,000 Reserve with F. R. bank 43,154,000 46,025,000 54,899,000 Net demand deposits 361,976,000 389,990,000 450,948,000 Time deposits 181,799,000 I 84,866,000 I 95,228,000 Government deposits 1,783,000 826,000 2,751,000 RESERVE BANK OPERATIONS: There has been a sharp increase in the demand for credit at this bank and branches since the first of the year. The total of bills rediscounted for member banks increased 33.1 percent between December 31, 1931, and February IO, 1932, and on the latter date totaled $36,904,232 as compared to $14,422,871 on February II, 1931. The bank reduced its acceptance holdings 35.3 percent in six weeks, but the total as of February IO was $3,183,222 larger than one year earlier. Holdings of United States securities increased 7.2 percent during the six weeks' period, but on February IO were 41.1 percent smaller than a year ago. The total of .bills and securities held by the bank increased 11.3 percent since the beginning of the year and 23.3 percent in fifty-two weeks. Federal reserve note circulation declined 0.5 percent in six weeks, but increased 24.6 percent in fifty-two weeks. Member banks' reserve deposits declined 9.5 percent between December 3 and February IO when they were 19.1 percent smaller than on the corresponding date last year. Changes in the principal resource and liability items of t..he bank and branches in six weeks and fifty-two weeks are indicated in the following: Feb.10, 1932 Dec.31,1931 Feb.11, 1931 Gold reserves - - - - - - - 84,430,732 $ 97,771,138 $ 97,010,355 Reserves other than gold_____ 8,717,575 7,665,279 8,249,570 Total reserves _ _ _ _ _ 93,148,307 105,436,417 105,259,925 Bills discounted - - - - - - 36,904,232 27,725,836 14,422,871 Bills purchased - - - - - 7,553,205 n,666,126 4,369,983 U.S. securitie,,.___ _ _ _ __ 20,057,600 18,707,600 34,028,000 Other securities _ _ _ _ _ _ 590,000 400,000 Total bills and securities,_ _ _ 65,105,037 58,499,561 52,820,854 Total resources - - - - - - 183,665,676 194,416,163 190,567,822 F. R. notes in circulatio,.L-_ __ 82,305,885 82,7n,485 66,069,530 Member banks' reserve deposits_ 68,080,500 75,228,701 84,201,904 The discount rate of the Federal Reserve Bank of Kansas City, on all classes of paper and all maturities, remained unchanged at 3½ percent. SAVINGS: A slight increase in the number of savings accounts and a slight decrease in the amount of savings deposits between January 1 and February 1 is indicated by the reports of fifty banks and savings institutions in leading cities of this District. Compared to February 1, 1931, savings deposits declined 7.2 percent and the number of savings accounts 1.8 percent. The number of accounts and amount of deposits as of the three dates: Savings Accounts 49 Banks February 1, 1932 ___________ 428,857 January 1, 1932 _ _ _ _ _ _ _ __ 426,342 February 1, 1931 _ _ _ _ _ _ _ __ 436,551 Savings Deposits 50 Banks $123,279,233 123,787,898 132,789,938 Federal Reserve Bank Check Collections The number of checks collected through the Federal Reserve Bank of Kansas City and branches at Omaha, Denver, and Oklahoma City during January declined 15.9 percent as compared to December and 18.8 percent as compared to January, 1931. The aggregate value of checks handled declined 11.9 percent for the month and 27.3 percent from January of last year. The number and value of checks handled in each of the three months of comparison, is shown in the following: January 1932 December 1931 - - - - - - - - - - January 1931 - - - - - - - - - - ITEMS AMOUNT 4,535,143 5,393,124 5,586,152 $572,052,000 649,039,000 787,363,000 Debits Banks in twenty-nine leading cities of the District reported debits to individual accounts during the five weeks' period ended February 3 declined 2.8 percent as compared to the preceding five weeks ended December 30 and 26.7 percent as compared to the corresponding five weeks ended February 4, 1931. Debits reported throughout the United States declined 23.1 percent as compared to last year. PAYMENTS BY CHECK FIVE WEEKS ENDED Albuquerque, N. Mex. ________ $ Atchison, Kans. _ _ _ _ Bartlesville, Okla. Casper, Wyo. Cheyenne, Wyo. Colorado Springs, Colo. ______ Denver, Colo. Enid, Okla. Fremont, Nebr. Grand Junction, Colo. _______ Guthrie, Okla. Hutchinson, Kans. _____________ Independence, Kans. ___________ Joplin, Mo. __ Kansas City, Kans. ___________ Kansas City, Mo. Lawrence, Kans. Lincoln, Nebr. Muskogee, Okla. Oklahoma City, Okla. ________ Okmulgee, Okla. Omaha, Nebr. Pittsburg, Kans. Pueblo, Colo. Salina, Kans. St. Joseph, Mo.---------------- -Topeka, Kans. Tulsa, Okla. Wichita, Kans. Feb.3, 1932 Feb.4, 1931 10,653,000 $ 14,615,000 3,562,000 5,553,000 21,392,000 26,545,000 5,28 8,000 7,769,000 6,120,000 7,902,000 15,274,000 15,862,000 131,396,000 180,757,000 8,866,000 14,244,000 3,154,000 4,356,000 2,601,000 3,233,000 1,693,000 3,257,000 II,240,000 19,847,000 7,026,000 9,205,000 7,774,000 10,309,000 17,415,000 22,745,000 316,960,000 411,776,000 4,575,000 6,287,000 29,552,000 36,518,000 8,968,000 I I ,326,000 76,191,000 120,690,000 3,095,000 4,795,000 147,490,000 216,925,000 4,82.2,000 6,009,000 15,123,000 18,436,000 8,919,000 13,582,000 34,722,000 50,235,000 19,469,000 27,755,000 107,579,000 135,513,000 46,239,000 63,062,000 29 centers, this D istrict ________$ 1,077,158,000 263 centers, United States____ 42,385,814,000 $ 1,469,108,000 55,123,058,000 Percent Change - 27.1 - 35.9 19.4 31.9 22.6 3'7 27.3 37.8 27.6 19.5 48.0 43.4 23.7 24.6 23.4 23.0 27.2 19.1 20.8 36.9 35.5 32.0 19.8 18.0 34.3 30.9 29.9 20.6 26.7 - 26.7 23.1 Trade Distribution of merchandise at wholesale in this District, as measured by the dollar sales of five representative lines combined, was 13.1 percent smaller than in the preceding m()nth and 28.4 percent smaller than in the same month last year. As a rule the January volume slightly exceeds the December volume, and reports from some sections attribute the decline this year largely to impassible roads. By individual lines, drygoods was the only one to report their January sales as larger than their December. sales, and all five lines, drygoods, groceries, hardware, furniture, and drugs, reported their January sales as substantially under a year ago. Wholesalers of drygoods, hardware, and drugs increased their stocks somewhat during the month, and all lines reported inventories as of January 31 smaller than on the lik~ date last year. THE MONTHLY REVIEW 3 RETAIL TRADE AT 35 DEPARTMENT STORES IN THE TENTH FEDERAL RESERVE DISTRICT SALES STOCKS (RETAIL) ACCOUNTS RECEIVAJSLE COLLECTIONS January 1932 January 31, 1932 STOCK TURNOVER January 31, 1932 January 1932 Stores compared to compared to January compared to , compared to Reporting January 1931 Dec. 31, 1931 Jan. 31, 1931 1932 1931 Dec. 31, 1931 Jan. 31, 1931 Dec. 1931 Jan. 1931 Kansas City _______ 4 -25.4 1.5 - 8.5 .16 .19 -16.8 -15.6 13.5 - 9.9 Denver _ _ _ 5 -20.2 - 4.3 - 8.5 .19 .22 -13.2 - 4.5 20.8 - 7.4 Oklahoma City _ 3 -28.4 - 9.8 -14.9 .21 .25 4.8 - 3.6 19.7 -32.7 Lincoln 2 -29.1 -10.4 -15.6 .26 .30 - 9.8 -14.0 4.5 -:21.8 Even -22.0 -28.3 - 9.3 -18.8 .18 .19 -17.0 -17.2 Topeka -- ------- - 3 Tulsa _ _ __ 3 -24.3 -10.6 -12.2 .30 .34 -16.3 -10.2 - 3.9 -30.7 Wichita _____________ 3 -31.6 -26.3 -17.0 10.9 -25.1 Other cities ______ 12 -29.5 -15.1 -17.0 ,21 .25 -13.1 -13.5 14.6 -14.0 Total - - -- 35 -25.9 - 5.7 -11.2 .19 .23 -12.2 - 9.7 14.2 NOTE: Percentage of collections ill January on accounts December 31, all stores reporting 38. Collections same month last year 40.2. RETAIL: The combined dollar sales of thirty-five reporting department stores in the District declined 55.3 percent in January as compared to December, and 25.9 percent as compared to January, 1931. The decline for the month compares with a fi ve year average decline of 5r.5 percent and the decline as compared to the corresponding month in the preceding year is the largest reported for any month of the past two years. Retailers reduced their stocks 5.7 percent during the month, and on January 31 inventories were n.2 percent smaller than on January 31, 1931. Collections in January amounted to 38 percent of accounts outstanding at the end of the previous month as compared to 37.5 percent in December and 40.2 percent in January, 1931. Building Official returns from seventeen reporting cities in the District showed 652 permits were issued in January for buildings estimated to cost $880,957. This was the smallest number of permits issued and the smallest estimated cost of construction reported by these cities for any month in over thirteen years. The decline was general, all cities reporting the estimated cost of construction substantially below that of a year ago. Compared to December, permits declined 19.7 percent as to number and 40 percent as to estimated value. BUILDING PERMITS IN T ENTH DISTRICT CITIES PF.RMITS EsTIMA TED CosT 1931 1932 1931 1932 $ 24,600 $ 106,550 Albuquerque, N. M. 12 48 16,162 24,380 Colorado Springs, Colo. 28 32 Denver, Colo. _ _ _ _ _ _ _ 203 23 9 315,080 508,400 21 ,665 32,800 Hutchinson, Kans. 13 25 7,183 Joplin, Mo. 1o 8 3,900 Kansas City, Kans. 20 28 9,655 3 1 ,745 214, 800 196,600 Kansas City, Mo. 89 129 Lincoln, Nebr. 16 24 53,580 14,790 3,068,760 107,489 Oklahoma City, Okla. ------------------ 73 198 Omaha, Nebr. _________ 18 32 87,225 45,275 Pueblo, Colo. 26 47 14,875 3:5,329 Salina, Kans. ___________ 7 16 8,470 19,3 25 Shawnee, Okla. 3 12 1,750 29,350 16,860 4,180 St. Joseph, Mo. -- 12 19 25,660 34,760 Topeka, Kans. 13 34 40,546 Tulsa, Okla. ------75 1 82 535, 01 3 202,600 30,260 Wichita, Kans. 34 88 Total 17 cities, January_ _ _ 652 Reporting Stores Dry Goods _ _ _ __ Groceries Hardware Furniture 6 Drugs 6 5 9 6 1,161 $880,957 $5,008,660 Lumber RETAIL: Sales of lumber in board feet at 166 retail yards located in cities and towns of this District declined 6.2 percent in January as compared to December, and 44.7 percent as compared to January, 1931. January sales of all materials in dollars increased 14.4 percent over December, but were 40.3 percent below a year ago. Stocks of lumber were reduced 2.1 percent in January and r r .6 percent during the year. Collections during January were reported equalling 23 percent of the amount of accounts outstanding at the close of the year as compared to 32.9 percent for January, r931. The volume of January business at these yards is here compared with that for December and January, 1931, in percentages of increase or decrease: January 1932 Compared to December 1931 January 1931 Salc:s of lumber, board feet ____ _ _ _ _ _ _ 6.2 - 44.7 Sales of all materials, dollars_ _ _ 14.4 - 40.3 Stocks of lumber, board feet ___________ 2.1 - 11.6 Outstandings, end of month ____________ 4.5 - 21.0 Lumber production in the United States as reported by mills to the National Lumber Manufacturers Association for the first five weeks of the current year was only 19 percent of normal and 38 percent of the average for the past three years. Shipments during the five weeks exceeded production and orders received exceeded shipments. Compared to the like period last year, production declined 45 percent; shipments, 34; and orders received, 33 percent. Cement The decline in the production of finished Portland cement at mills in this District in January as compared to December, although slightly larger than last year, was somewhat less than the five year average. The January output was only 0.7 percent below that of January, 1931. Production exceeded shipments, and stocks on hand as of January 31 were the heaviest since June, but r2.4 percent smaller than on January 31, 1931. Production in the United States during January totaled 4,989,000, shipments 3,363,000, and month-end stocks 25,568,000 barrels, as against 6,595,000, 4,692,000, and 27,759,000 barrels, respectively, for the like month in the preceding year. WHOLESALE TRADE IN THE TENTH FEDERAL RESERVE DISTRICT SALES OUTSTANDING& COLLECTIONS Jan. 1932 compared to Jan. 31, 1932 compared to Jan. 1932 compared to Dec. 1931 Jan. 1931 Dec. 31, 1931 Jan. 31, 1931 Dec. 1931 Jan. 1931 3.4 -32.3 - 1.3 -20.6 - 39.6 -24.0 -14.7 -16.7 - 2.0 - 3.8 -17.2 -26.5 -33.6 -37.3 - _4.6 -11.4 -34.5 -36.l -25.4 -53-1 - 3.4 -35.6 -27.9 -49.8 I.O -23.7 2.4 - 8.2 -18.8 -25.3 STOCKS Jan. 31, 1932 compared to Dec. 31, 1931 Jan. 31, 1931 16.8 -13.9 - 8.7 - 5.5 2.1 -18.8 - 5.4 -29.9 6.8 -17.4 THE MONTHLY REVIEW 4 January production, shipments, and stocks of finished Portland cement at mills in this District: January 1932 December 1931 January 1931 Barrels Barrels Barrels Produced 569,000 747,000 573,000 Shipped 227,000 415,000 371,000 Stocks, end of month' - - - 2,303,000 1,961,000 2,628,000 Bituminous Coal The demand for coal continued below normal and the January output of mines in the six coal producing states of this District declined 9.1 percent as compared to December and 11.7 percent as compared to January, 1931, and was the smallest for that month in many years. The tonnage of soft coal produced in each of the six states and the United States during January is shown in the following: Colorado ____________ Kansas Missouri New Mexico _ _ _ __ Oklahoma _ _ _ _ __ Wyoming •January 1932 Tons 669,000 218,000 391,000 140,000 158,000 429,000 Total, six state~ - - - 2,005,000 Total, United States ___________ 27,860,000 •Estimated. December 1931 Tons 773,000 228,000 381,000 155,000 184,000 484,000 January 1931 Tons 819,000 246,000 315,000 168,000 236,000 488,000 2,205,000 30,260,000 2,272,000 38,542,000 Petroleum Estimates based on the weekly reports of the American Petroleum Institute indicate a 16.1 percent reduction in the flow of crude oil from wells in this District in January as compared to December. The January production was 8.7 percent under a year ago and the smallest for that month since 1925. The following table gives the gross production of crude oil in each of the five oil producing states of this District and the United States: •Jan. 1932 Barrels 13,633,000 3,081,000 1,111,000 I I 1,000 1,155,000 Dec. 1931 Barrels 16,987,000 3,183,000 1,139,000 126,000 1,313,000 Jan. 1931 Barrels 15,168,000 3,102,000 1,317,000 139,000 1,185,000 Total, five states__ _ _ __ 19,091,000 Total, United States______________________ 67,909,000 •Estimated, American Petroleum Institute. 22,748,000 73,174,000 20,9u,ooo 65,991,000 Oklahoma Kansas Wyoming Colorado New Mexico Field operations in this District as measured by the number of wells completed and rigs up and wells drilling at the close of the month, although slightly more active than in the preceding month, were comparatively quiet in relation to the like month in recent years. The cessation of field work has extended over an unusually long period of time, and reports covering the United States indicate more wells were abandoned than drilled last year. Field activity in the oil producing states of this District is shown in the following table: Wells Barrels Daily Completed New Production Oklahoma 63 56,497 Kansas 42 13,980 Wyoming _ _ __ 2 0 0 Colorado 5 New Mexico 8,565 7 January 1932 ________ 119 December 1931 -----89 January 1931 ---------- 264 79,042 79,306 578,135 Dry Wells 25 II 2 5 3 46 23 94 Gas Rigs-Wells Wells Drilling II 308 4 160 0 78 0 83 53 16 17 41 682 676 919 Mid-continent crude oil prices remained unchanged, ranging from 61 cents per barrel for oil testing below 29 degrees gravity up to 85 cents for oil testing 40 degrees gravity and over. Prices were approximately 15 cents per barrel below a year ago. Zinc and Lead Mines in the Tri-State district reported shipments of zinc ore during the five week period ended January 30 were 36.5 and 53.5 percent, respectively, smaller than in the preceding five weeks ended December 26 and the corresponding five weeks ended January 31, 1931. Shipments improved the first two weeks in February and the total for the second week of that month exceeded production by 500 tons and sales exceeded production by more than 1,500 tons. Lead ore shipments increased sharply during the current five weeks and were almost three times as large as in the preceding period and more than double those of the corresponding period last year. In the first four weeks of January stocks were reduced 3,500 tons, equal to two months' production. The increase in shipments is attributed to a desire on the part of producers to dispose of lead concentrates and hold zinc, and to the approach of tax assessment time in Kansas, where the greatest increase in shipments was shown. Shipments of zinc ore and lead ore from each of the three states in the Tri-State district in the five weeks' period ended January 30, 1932, with comparisons: ZINC ORE LEADORE Tons 5,952 5,772 347 Value $103,918 roo,194 5,960 Tons 2,6o7 2,982 133 Value $108,252 125,490 5,372 5 Wks. ended Jan. 30, 1932 __________ 12,071 5 Wks. ended Dec. 26, 1931__ ________ 18,999 5 Wks. ended Jan. 31, 1931__________ 25,987 $210,072 352,677 675,662 5,722 1,542 2,721 $239,u4 59,340 144,172 Oklahoma _ _ _ _ _ _ __ Kansas _ _ _ _ _ _ _ __ Missouri Zinc ore prices declined $1 per ton during January, opening at $18 and closing at $17 per ton as compared to $27 per ton one year earlier. Values were $1 per ton higher the second week of February. Lead ore was unchanged at $40 per ton the first seven weeks of the new year compared to $50 per ton at the close of January, 1931, and $45 per ton two weeks later. Grain Marketing Receipts of grain at the five principal markets of the Tenth District during January were larger for all classes than in the preceding month, but substantially smaller than during January , last year for all classes except oats. In normal years corn begins to move to market in volume the forepart of November, with the movement reaching its peak in January or February, but the new crop movement has been unusually light so far. Wet fields delayed harvest, demand at terminal markets has been limited, and with the increased use of trucks, more corn has moved direct from producers to consumers. The five markets received only 1,3.14,000 bushels of corn in January this year as against 8,162,450 bushels last year, and a ten year average of 8,817,000 bushels. Marketings of wheat continued heavy and, excluding January, 1931, were the largest for that month since 1921. January receipts of oats were practically 1,000,000 bushels short of the ten year average and were the smallest for any January in a generation, January, 1930, excepted. Farmers are feeding their oats in preference to selling them. Arrivals of barley, rye, and kafir were the smallest for any January in recent years. All grain prices moved narrowly during January, No. 1 hard and dark wheat at Kansas City opening the month at 49 and closing at 51½ cents per bushel. No. 2 mixed corn and No. 2 white oats opened at 38½ and 28½ cents per bushel, respectively, both closing 2 cents per bushel lower. Closing prices for January, 1930, were as follows: No. I hard and dark wheat, 68½; No. 2 mixed corn, 53; and No. 2 white oats, 32 cents P,Cr bushel. THE MoN'FHLY REVIEW Receipts of six classes of grain at the five markets: Wheat Bushels Hutchinson ____ _ 3,102,300 Kansas City _______ 5,937,600 Omaha 2,028, 800 St. Joseph __________ _ 187,200 Wichita _ __ 1,720,500 Corn Oats Rye Barley Bushels Bushels Bushels Bushels 3,750 57,500 532,500 160,000 7,500 78,400 6,400 432,600 46,000 9,800 274,500 450,000 1,300 16,900 4,500 Kafir Bushels 127,400 132,000 January 1932 ________ 12,976,400 1,314,000 660,500 17,300 89,850 259,400 December 1931-___ 10,893,850 1,310,500 534,000 15,500 57,150 190,300 January 1931_______ 16,30 2,450 8,162,450 608,000 41,700 u4,800 401,100 Flour Milling The output of flour by mills in this District dming January corresponded closely, as usual, to the amount produced in December. Compared to January of each of the two preceding years, production declined 7.9 percent and was the smallest reported for any January since 1926. Mills operated at 61.5 percent of capacity during January as compared to 63 percent in the like month last year. The demand for flour was light, with a majority of orders for 2,000 barrels or less calling for immediate delivery or within thirty to sixty days. Jobbers and small bakers were the principal buyers. Prices were steady to slightly lower. Millfeed demand was dull throughout the month, with supplies adequate and sometimes burdensome. Bran was in a more favorable demand than shorts, but both closed the month somewhat lower. Flour production in this District as estimated from the weekly reports of southwestern mills to the Northwestern Miller: January 1932 Barrels Atchison 106,342 Kansas City ------------------------ 660,670 Omaha 56,947 Salina 144,704 St. Joseph _ _ _ _ __ 22,549 Wichita _ _ _ _ _ __ 196,760 Outside 723,904 December 1931 Barrels 107,91 3 629, 883 91,117 152,594 48,574 157,177 757,108 January 1931 Barrels 135,840 640,3 46 95,669 186,144 27,916 II2,749 876,813 1,944,366 2,075,477 Total Agriculture Due to frequent rains and snows there was very little farm work accomplished during January. Some corn remains unharvested and spring plowing has been delayed. Oats seeding commenced in the southern third of the District the second week in February and the pruning of fruit trees is quite general. There is a sufficiency of subsoil moisture in the eastern half of the District but a deficiency in the western half. Winter wheat prospects in the eastern half of the wheat belt are reported good to excellent, but range from fair to poor in the western half. Western Kansas received some surface moisture during January but subsoil moisture is decidedly lacking in most western counties, and winds in the forepart of February caused some damage to late planted fields where growth was limited and rooting shallow. Missouri reported plant growth too far advanced for the season. Low prices and limited credit have compelled farmers to reduce their cash outlays. Farm labor is abundant at low wages and production costs have declined somewhat, but fixed charges remain practically unchanged. There is a large demand for rental land, mostly on a share crop rental basis. The general level of farm prices in the United States on January 15 was placed at 63 percent of the 1910-14 average by the Bureau of Agricultural Economics, a decline of three points since December 15. The decline since December 15 was due primarily to decreases in the prices of eggs, milk, and butter 5 fat, which declined 33, 16, and 7 percent, respectively, during the period. Farm prices of butter fat and eggs produced in this District between January 15 and February 15 were the lowest for that season in over thirty years. Livestock MARKET MOVEMENTS: More cattle, hogs, and sheep, and fewer calves were received at the six principal livestock markets of this District in January than in December, 1931. The January run of cattle and calves was the smallest, and of sheep the largest, for that month at these markets in over fifteen years. Arrivals of hogs, including direct shipments to packers' yards which were the largest of record, were in about normal supply, although Omaha received more hogs in January than in any other month in the history of that market. Only 6,086 head of horses and mules were received at these markets in January, compared to 10,208 head last year and a ten year January average of 16,535 head. Receipts of cattle, calves, hogs, and horses and mules at sixtythree markets in the United States during January were somewhat smaller than in the like month last year and 19.4, 14.5, 12.4, and 60.9 percent, respectively, short of the five year average. Arrivals of sheep and lambs were 8.7 percent larger than a year ago and 25.7 percent above the five year average. STOCKERS AND FEEDERS: Shipments of stocker and feeder cattle, calves, and sheep from four Tenth District markets in January were seasonally smaller than in December and sharply under a year ago. The outgo of cattle was over 50 percent below the ten year average, that of calves the smallest for any January since 1927, and of sheep the smallest for any January since 1921. The countryward movement of hogs was 7.2 percent larger than in the preceding month, but, with that exception, was the smallest for any month since July, 1921. This unusually light movement is attributed largely to weather conditions, low prices, lack of funds, and unsatisfactory returns from previous feeding operations. LIVESTOCK ON RANGES: The condit1on of cattle and sheep on western ranges February 1 is reported by the United States Department of Agriculture at 80 percent,. the lowest for any month in the nine years records have been kept, and compares with the five year average of 86.5 percent for cattle and 89.9 percent for sheep. There is a serious shortage of feed in the winter grazing areas and the supply of hay and feed generally is the shortest in many years. Supplemental feeding of cattle has been heavier than usual. Cattle are thin but losses have been light. Sheep in eastern New Mexico are reported in good condition but elsewhere are in fair to poor condition with heavy losses reported for some localities. The poor condition of breeding flocks, which carry a larger than usual proportion ot old ewes, has materially reduced lamb crop prospects. PRICES: Livestock prices during January and the forepart of February were irregular. Receipts of hogs were seasonally large, and, although most offerings were well finished, prices averaged 50 to 75 cents per hundredweight less than in December with bulk of sales at $3.50, the lowest since 1899, compared to $7.ro last year. In spite of record January receipts of sheep and lambs, prices of lambs were 50 to 60 cents higher for the month and $1 to $1.50 above the twenty-four year low of midDecember, but approximately $2.50 per hundredweight under a year ago. Cattle and calves were in light supply but prices for most grades, except veals which closed $1 higher, were steady. Prime steers were scarce and most arrivals lacked finish, due largely to bad feed lot conditions and a shortage of corn in some localities. Prices of hides declined in January to the lowest level in nearly forty years, and wool continued low. 6 THE MONTHLY REVIEW Cold Storage Holdings There was a seasonal decrease in January in United States cold storage holdings of beef, mutton, poultry, eggs, butter, and cheese, and a seasonal increase in stocks of pork, miscellaneous meats, and lard. The seasonal out-of-storage movement of poultry was in excess of the five year average, and the percentage decrease in that of mutton was larger but the tonnage was smaller. The out-of-storage movement of beef and cheese was slightly smaller, and that of butter and eggs considerably smalier, than normally occurs. The in-storage movement of miscellaneous meats and lard was somewhat larger than the five year average, whereas, that of pork was substantially smaller. February I holdings of beef, pork, lamb and mutton, miscellaneous meats, butter, and cheese were smaller than on February 1, 1931, or the five year average February I holdings. Stocks of poultry were heavier than one year ago but 8.3 percent b~low the average. Storage stocks of eggs were fractionally higher than last year and 66 percent in excess of the five year average, with the storage season nearing its close. Cold storage holdings in the United States on February 1, as reported by the Bureau of Agricultural Economics, United States Department of Agriculture, with comparisons: "'Feb. 1 Feb. 1 Jan. 1 Feb. 1 1932 1932 1931 5Yr.Av. Beef, lbs. - - - - - - - - 51,221 53,199 72,398 86,463 Pork, lbs. ----------------- 674,378 563,306 726,264 699,271 Lamb and mutton, lbs._ _ _ _ 1,968 2,318 4,0 81 4,322 Poultry, lbs. - -- - --------- 111,576 116,700 101,307 121,693 **Turkeys, lbs. ---------------- 14,274 10,320 7,018 11,035 Miscellaneous meats, lbs. ___________ 69,261 65,579 93,747 79,516 La.rd, lbs. - - - - - - - - 78,538 51 ,224 62,624 89,781 280 Eggs, cases -------------·--···-···----------664 1,475 735 Eggs, frozen (case equivalent) ______ 2,067 2,263 2,162 1,358 Butter, creamery, lbs.____________________ 22,527 26,643 46,792 35,599 Cheese, all varieties, lbs ..______________ 65,707 73,289 69,471 66,142 •subject to revision. **Included in Poultry. (ooo omitted.) United States cold storage holdings of fruit as of February 1, 1932, compared to February 1, 1931, and the five year average, are shown in the following, in thousands of units: Feb. 1, 1932 Apples, barrels _________ Apples, boxes _ _ _ __ Apples, baskets _ _ _ _ _ __ Pears, boxes _ _ _ _ _ _ __ Pears, baskets _ _ _ _ _ __ Frozen and preserved fruits, lbs. ___ _ Feb. 1, 1931 1,320 11,760 7,685 59 1 81 88,812 Feb. 1 5 Yr. Aver. 1,654 11,626 3,206 72 9 32 56,013 Meat Pacl<lng Packers purchased a larger proportion of the cattle, calves, and shee_p, an_ d a_ sligl.1tly smaller propo.rtion. of the hogs arriving h 11 k k h aht t e hs1?' prd1ncd1pa 1vestoc km~r etsdm t 1s District, including ogs s 1ppe 1rect to pac ers yar s, in January, 1932 than they did in December or January, 193,1. In January the; purchased more cattle and sheep and fewer calves for slaughter than in either the preceding month or the corresponding month last year. The January slaughter of sheep was the largest, and that of calves the smallest, for the like month of any war or post war year. There was a seasonal increase in the slaughter of hogs, but the January total was o.6 percent below a year ago and slightly smaller than for any January since 1928. The Bureau of Agricultural Economics reported 0.4 percent less cattle, 8.5 percent less calves, 6.2 percent less hogs, and 17.7 percent more sheep and lambs slaughtered under Federal meat inspection in the United States during January than in the same month last year. Livestock on Farms The annual inventory of the United States Department of Agriculture, as to the numbers and value of livestock on farms ~n the United States on January 1, discloses a steady increase m the number of all cattle, milk cows, and sheep and lambs, and a steady decrease in the number of horses and colts and mules and mule colts in the last four years. In 1931 there was a sharp increase in swine numbers, which had declined over 6,000,000 head or IO percent between January 1, 1928, and January 1, 1931. In spite of greater numbers, the total value of all livestock on farms in the United States declined from $5,994,970,000 on January 1, 1930, and $4,450,708,000 on January 1, 1931, to $3,195,748,000 on January 1, 1932. The decline .in the per head values was even more pronounced in 1931 than in 1930 for all species of livestock except horses and mules. The trends in the seven states, whose areas or parts thereof comprise the Tenth District, followed those for the United States both as to numbers and values. Between January 1, 1930, and January 1, 1932, numbers, all species combined, increased 5.4 percent, ~ut the aggregate values declined 49.3 percent and the per umt value 51.9 percent. The per unit value declined 34.9 percent between January 1, 1931, and January 1, 1932, and 26.0 percent between January 1, 1930, and January 1, 1931. The decline in per head values of meat animals between January 1, 1930, and January 1, 1932, exceeded 55 percent for all species and ranges up to 65 percent for sheep and lambs. yalues of horses and mules declined approximately 26 percent m the two years. The decline in values per head of livestock on farms in this District during 1931, 1930, and the two years combined: Jan. 1, 1932 Compared to Jan. 1, 1931 All cattle ----------------- - 34.7 Milk cows - - - - - - - - 32 ·1 Swine---------- - - - - - - - 48.9 Sheep and lambs_ _ _ _ _ - 42.0 Horses and colts __________________________ - i1.5 Mules and colts ____ _ _ _ _ _ - 11.3 Five species - - - -----------···-·· _ 34 _9 Jan. 1, 1931 Compared to Jan. 1, 1930 - 31.2 - 3 2 ·2 - 16.3 - 39.5 - 15-5 _ 17 .0 _ 26_0 Jan. 1, 1932 Compared to Jan. 1, 1930 - 55.2 - 53.5 - 57.2 - 64.9 - 25.9 _ 26. 4 _ 51 _9 Numbers and values of livestock on farms for each of the seven s~ates and the_ United States on January 1, 1932, with comparisons, appear m detail on the opposite page. JANUARY MOVEMENT OF LIVESTOCK IN THE TENTH DISTRICT RECEIPTS Cattle 122,063 107,014 33,899 31,403 19,057 12,652 Calves Hogs 10,147 •332,364 6,274 476,402 4,597 142,353 5,835 73,9 12 3,865 29,419 3,958 49,756 STOCKERS AND FEEDERS PURCHASED FOR SLAUGHTER Sheep 183,269 281,694 117,862 89,739 8,049 7,141 Cattle 21,188 12,412 2,772 16,767 Calves 1,525 1,658 228 3,554 Hogs 2,020 858 932 1,387 Sheep 4,310 35,207 11,552 7,828 Cattle 57,809 72,099 25,784 9,174 12,800 6,257 January 1932_ _ _ _ 326,088 34,676 1,104,206 687,754 December 1931__ _ 317,181 45,000 971,564 613,871 January 1931____ 363,822 52,273 1,101,775 658,589 •Includes 210,206 hogs shipped direct to packers' yards. 53,139 87,892 I 12,873 6,965 18,332 14,071 5,197 4,850 9,328 58,897 103,174 100,705 183,923 173,776 163,315 Kansas City_ _ __ Omah" - - - - - - St. Josep,il-- - -Denver_ _ _ __ _ Oklahoma City_ __ Wichit.___ _ _ __ Calves Hogs 10,133 •305,120 4,616 317,127 4,205 99,555 1,659 50,246 3,322 25,501 1,658 61,939 Sheep 155,802 183,083 102,167 19,784 7,912 6,642 859,488 764,225 864,640 475,390 4 21,435 419,483 25,593 27,654 3 2 , 0 47 THE Colorado Kansa Missour Nebrask New Mexico Oklahoma ___________ Wyoming Seven states United States 1928 1,317 2,696 2,109 2,766 1,070 1,723 764 7 MONTHLY REVIEW LIVESTOCK ON FARMS JANUARY l As Estimated by the United States Department of Agriculture (In thousands, ooo omitted) ALL CATILE AND CALVES NUMBER OF HEAD •1932 1928 1929 1930 1931 1929 $ 72,802 $ 61,459 1,317 1,541 1,541 1,454 2,831 2,991 121,747 152,045 3,141 3,392 2,660 121,805 2,109 2,500 2,551 100,373 3,016 2,766 164,096 3,167 3,104 136,549 1,100 1,100 1,017 1,144 47,320 4 1,593 2,010 2,151 77,926 1,723 1,915 68,394 830 863 37,398 47,450 764 790 12,445 55,681 12,527 55,751 1928 242 701 827 613 65 610 72 1929 244 701 810 613 65 610 72 1930 259 780 930 680 69 650 72 1931 260 Su 989 680 69 682 72 •193:1 266 860 1,030 700 70 716 72 Seven states United States 3,130 21,824 3,II5 21,820 3,440 22,910 3,563 23,558 3,714 24,379 Colorado Kansa Missour· Nebrask New Mexico Oklahom Wyoming 1928 509 2,531 4,270 5,492 77 1,104 138 1929 550 2,531 4,070 4,888 73 994 149 1930 495 2,826 3,750 5,010 65 1,053 130 Seven states United States 14,121 60,420 13,255 54,956 13,329 55,301 Colorado Kansas Missouri_ _______ Nebrask New Mexico Oklahom Wyoming 1928 2,806 512 942 905 2,362 97 3, 193 1929 2,780 538 987 1,050 2,362 107 3,448 1930 3,750 659 1,180 1,208 2,527 185 3,540 Seven states United States 10,817 44,554 11,272 47,171 13,049 51,383 1928 324 798 604 788 168 537 190 1929 308 766 574 764 163 516 186 1930 338 728 610 757 142 5°7 176 3,409 14,540 3, 277 14,029 3,258 13,684 13,766 59,730 14,340 60,915 14,855 62,407 VALUE 1930 $ 73,985 150,296 133,772 165,815 44,343 78,489 42,875 $ 1931 58,324 104,770 88,396 123,536 33, 29° 51,101 33,490 $ •1932 34,670 74,668 63,229 75,014 24,386 40,151 21,122 $ 567,513 $ 683,444 $ 689,575 $ 492,907 $ 333,240 2,845,067 3,308,837 3,386,010 2,394,411 1,662,222 MILK COWS AND HEIFERS KEPT FOR MILK Colorado Kansa Missour· Nebrask New Mexico Oklahoma _______ Wyoming Colorado _______ Kansas Missour Nebrask New Mexico Oklahom Wyoming Seven states United States Colorado Kansas Missour· Nebrask New Mexico Oklahom Wyoming Seven states United States___ •subject to revision. 1928 33 213 330 llO 31 347 5 1,069 5,53 2 1929 32 198 313 106 30 333 5 1930 30 160 300 99 24 318 4 1,017 5,447 935 5,366 $ 1928 16,698 43,462 50,447 43 ,523 3,7° 5 34,160 5,040 SHEEP 1931 3,351 669 1,204 960 2,780 174 3,894 13,032 52,745 14,252 59,5n 3,027 12,679 865 5,082 $ 1931 14,560 38,928 43,516 38,080 3,450 24,55 2 4,680 $ •1932 9,576 28,380 30,900 25,200 2,590 19,33 2 2,808 $ 244,071 $ 167,766 $ nS,786 1,845,675 1,897,ou 1,345,479 965,758 $ 1929 6,630 32,223 49,641 73,924 779 9,520 1,836 $ 1930 5,943 36,156 42,701 78,260 704 9,905 1,566 $ 1931 5,769 26,056 31,029 64,522 596 7,555 1,482 $ 190,252 $ 174,553 $ 175,235 $ 137,009 794,941 714,760 744,308 617,668 $ 1929 29,615 4,977 10,502 10,001 24,415 1,068 39,875 $ 105,643 $ 120,453 456,687 500,058 $ 1929 14,554 37,4o4 30,572 46,046 5,8II 19,984 5,970 $ $ $ 1930 33,843 5,5 15 10,726 9,864 20,542 1,650 32,466 l 14,606 459,208 1930 15,023 35,075 33,200 45,923 4,720 19,628 6,013 $ $ $ 1931 18,659 2,996 6,013 4,543 13,520 806 22,620 $ $ $ 69,157 282,352 $ 1931 13,420 26,904 26,472 37,376 3,7 17 15,844 5,784 s •1932 3,271 17,027 22,776 30,061 422 5,970 662 80,189 365,133 •1932 10,575 2,406 3,9 29 3,158 6,899 486 14,850 4 2,303 183,255 •1932 11,008 25,103 22,922 30,944 2,930 13,561 4,352 $ 156,745 $ 160,341 $ 159,582 $ 129,517 $ 110,820 974,855 981,331 955,964 795,541 676,698 MULES AND MULE COLTS •1932 1931 1928 28 27 $ 1,845 12,719 155 143 22,553 291 297 8,195 91 95 22 23 1,394 302 287 18,156 262 4 4 904 5, 2 ~5 1930 18,648 57,7 20 65,100 53,720 4,485 38,350 6,048 $ 232,382 HORSES AND COLTS •1932 1928 1931 $ 13,831 324 331 685 699 34,335 30,404 592 574 46,864 719 697 128 5,152 135 482 20,229 453 166 171 5,930 3, 12 9 13,165 $ 1,613,373 AND LAMBS •1932 1928 3,361 $ 27, 157 4,804 779 1,205 9,494 8,262 1,047 21,136 3,058 164 852 4,128 33,938 13,742 53,9 12 1929 18,788 52,575 59,940 51,492 4,355 39,040 6,192 $ 197, 035 SWINE, INCLUDING PIGS •1932 1928 1931 520 6,690 624 $ 2,487 3,105 34,577 4,011 3,488 49,845 4,820 5,110 84,248 6z 800 74 1,205 12,230 9 27 1,862 123 137 12,441 54,374 $ $ 65,124 440,958 $ $ 1929 1,850 12,775 23,377 8,102 1,491 19,356 276 67,227 447,727 $ $ 1930 1,721 10,579 22,824 7,869 1,171 18,788 235 63,187 449,480 $ $ 1931 1,445 8,943 18,922 5,9 23 903 14,337 190 50,663 360,736 $ $ •1932 1,132 7,410 16,037 5,158 855 12,241 180 43,013 308,440 8 THE MONTHLY REVIEW Business Conditions in the United States By the Federal Reserve Board ....... Pf.ftGCNT M 10,0 INDUSTR IAL PRODUCTION A r- llO IOO , 'r 1 \ 1,N\ \ 10 1930 1924 \I'\ ' 1131 &O 19)2 60 Index number of industrial production, adjusted for seasonal variation. (1923-1925 average 100.) Latest figure, January, 70. 1927 1929 1928 1930 1931 1932 Indexes based on three month mc,ving averages of F. W. Dodge data for 37 Eastern States, adjusted for seasonal variation. (19231925 average 100.) Latest figures January, total 33, residential 20. = - 4 - ---+----ltoO --_ ..,...,.s.,o,,,1A¢,..,_., ..-. o.1-....,. 1927 ~.J.........,19=z•--'----= 1929 =--'------:: ,.=JO__i_-,,=9,.:--~ " -:-:-3 2--'· O Indexes of daily average value of sales with adjustment for seasonal variation and without adjustment for seasonal variation. Latest figures January, adjusted 80, unadjusted 65. Ill fY OOll.ARS all llON.S o, rn.~us :=.:M ::...; B[=R"-BA"-NK-CR - [ 0-IT~ I -- . - - - - - , - - - - , - - - 10 ,:;Mt e O I 11 f - - - - 4 -- . . . . . . - -,f--u--# 6 /' 1927 --J 1928 1929 1930 1931 1932 Monthly averages of weekly figures for reporting member banks in leading cities. Latest figures are aYerages of first three weeks in February. In January, production of manufactures increased by about the usual seasonal amount, while output of minerals and value of building contracts awarded continued to decline. Wholesale prices declined further during January and early February, but more recently prices of certain leading commodities showed an advance. PRODUCTION AND EMPLOYMENT: Volume of industrial production, which includes both manufactures and minerals, increased from December to January by an amount somewhat smaller than is usual at this time of year, and the board's seasonally adjusted index declined from 71 percent of the 1923-1925 average to 70 percent. In the steel industry there was a seasonal increase in activity during January, followed by a slight decline during the first three weeks of February. Production of automobiles which usually increases considerably at this season, showed little change in January, following an increase in December. Activity at textile mills increased by more than the usual seasonal amount, and at shoe factories there was a seasonal increase in production. Output of coal and petroleum was substantially reduced. Volume of factory employment declined by more than the usual seasonal amount between the middle of December and the middle of January. Numbers employed at foundries, car buildi11;g shops, clothing factories and establishments producing building materials declined substantially, while employment in the tobacco industry decreased less than is usual at this season, and employment in the woolen goods industry increased, contrary to seasonal tendency. Total value of building contracts awarded in 37 eastern states, as reported by the F. W. Dodge Corporation, declined sharply in January, and for the three months' period ending in that month was about one-half of the amount awarded in the corresponding period a year ago. Approximately one-fourth of the decrease was in residential building and three-fourths in other types of construction. DISTRIBUTION: Totai freight car loadings decreased in January, contrary to seasonal tendency, reflecting chiefly smaller shipments of merchandise, miscellaneous freight, and coal. Department store sales declined by about the usual seasonal amounts. WHOLESALE PRICES: The general level of wholesale commodity prices as measured by the index of the Bureau of Labor Statistics declined 2 percent further from December to January, although prices of some important commodities, such as wheat, showed little change and the price of cotton advanced. During early February, prices of certain leading commodities including grain and cotton declined, but later in the month there was some advance in the prices of these commodities. BANK CREDIT: Volume of reserve bank credit outstanding declined in January and the first half of February. This decrease has reflected a return flow of currency from circulation, which has been smaller than usual this year, together with a continued reduction in member bank reserve balances, offset in part by a demand for reserve bank credit caused by an outward movement of gold amounting to $100,000,000 since the turn of the year. A decline in money in circulation after the first few ,days in February reflected some return of hoarded currency accompanying a decrease in bank failures. At member banks in leading cities volume of credit continued to decline during January and the first half of February. Between January 13 and February 17, total loans and investments decreased by $550,000,000 representing declines in loans on securities, in other loans and in investments. Deposits of these banks also declined substantially during this period. Money rates in the open market showed little changes. On February 26 the discount rate of the Federal Reserve Bank of New York was reduced from 3,½ to 3 percent, and buying rates on bankers acceptances of short maturities were reduced from 23/4 to 2o/s percent.
@FedFRASER