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THE MONTHLY REVIEW Of Agricultural, Industrial, Trade and Financial Conditions in the Tenth Federal ReserrJe District FEDERAL Vol. 19 RESERVE BANK OF KANSAS CITY Kansas City, Mo., March 1, 1934 No. 3 I BUSINESS IN THE TENTH FEDERAL RESERVE DISTRICT N contrast with a year ago, current conditions in practically all lines show some improvement over the preceding year. Percentages of Increase, or Decrease (-), for January 1934 over December Sales at both wholesale and retail establishments in the 1933 and January 1933. January 1934 Tenth District were, for the first time since 1929, larger in Compared to January than in the like month of the year before, the in- Banking Dec. 1933 Jan. 1933 crease for both lines being the largest ever reported. Net Payments by check, 29 cities ..- - - - - - - 2.9 9.5 Federal Reserve Bank clearing 5.2 49.0 demand deposits at member banks and savings deposits of a Business failures, number_.. -14.3 -57.9 selected list of banks increased during the month. Payments Business failures, liabilities................ 22.6 -,8.1 by check, although lighter than in December, showed an inLoans, 52 member banks·--··········· - 2.5 - 7.0 Investments, 52 member hanks.................................... 11.1 34-8 crease of 9.5 per cent over January, 1933. Business failures Net demand deposits, fl member banks.................... 4.1 27.4 declined, both in number and amount, and the January totals Time deposits, 52 member banks - o.6 - 5.8 were the smallest in thirteen years or over. Unemployment, Savings deposits, 45 selected banks.--. 3.2 - 4.8 due largely to Civil Works projects, is less than a year ago. Savings accounts, 45 selected banks............................ 1.9 - 6.o Farm prices and agricultural purchasing power are still low Distribution 8.6 Wholesalers' sales, 5 lines combined .... - - - - 35.9 although prices of most items, other than beef and poultry, Retailers' sales, 32 department stor....__ _ _ __ 19·3 -51.6 particularly grains, hay, cotton, mutton, wool, hides, hogs, and Lumber sales, 156 retail yards.. _______ 21.9 40.4 eggs, are encouragingly higher than at this time last year. Construction Building contracts awarded, valu,___ _ _ __ Cost prices have also advanced but the disparity between 88.6 ~9.1 Residential contracts awarded, value.. - - - - -4.9 30-4 prices received and prices paid by farmers has narrowed someBuilding permits in 17 cities, valu....__ _ _ __ 4.1 35-4 what the past year. The January index of farm purchasing Production Flour _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ power stood at 60 per cent of the 1910 to 1914 average of 100 14.2 -3.1 Crude petroleu ...__ _ _ _ _ _ _ _ _ __ - 2.6 as compared to 50 per cent in January, 1933. 16.3 Soft coa..__ _ _ _ _ _ _ _ _ _ _ _ __ 10.3 -I.5 January crude oil production was the largest for that month Zinc ore (shipped) Tristate District........- - - -32.6 - 9.3 since 1931 and in excess of Federal allowables. The output of Lead ore (shipped) Tristate District... .....- - - - - ~2.6 17.6 Cemen....__ _ _ _ _ _ _ __ _ ._ _ _ _ bituminous coal, approximately 60 per cent of normal, exceeded 26.5 124.4 receipts the tonnage for January, 1933, by 10.3 per cent. Shipments of Grain Whea _ _ _ _ _ _ _ _ _ _ _ __ _ __ 1.5 -34.2 zinc ore and lead ore from mines in the Tri-state district were Corn ...• _ _ _ _ _ _ _ _ _ _ _ _ _ __ -10.8 68.5 Oa...,__ _ _ _ _ _ _ _ _ _ _ _ _ __ not as heavy as a year ago but prices were much better and ~5.4 -5 1 .3 Ry _ _ _ _ _ _ _ _ _ _ _ _ _ _ ____ values were about a stand-0ff. Building operations, favored 232.4 316.7 Barley_ _ _ _ _ _ _ _ _ _ _ _ _ __ 23•7 by mild, open weather, showed a substantial gain for the year 65.3 Kafir_ _ _ _ _ _ _ _ _ _ _ _ _ __ ~1.7 18.5 but expenditures were still far below normal. Operations at receipts, 6 markets meat packing plants were heavier than usual at this season in Livestock Cattl...___ _ _ _ _ _ _ _ _ _ ······················· 22.s 37.3 all departments. Flour production, equal to 94 per cent of 8.2 20.5 Ca v -_ -_ --_ -_ · -_ -_ -_ --_Hogs _l_ _-_ _-_ _-_ 13-7 normal, was the heaviest since July but 3.1 per cent below the 59· 2 16.8 Sheep.·--··------------7.9 January, 1933, output. Horses and mul___,__ _ _ _ _ _ _ _ _ __ 18.8 57.3 In the marketing field receipts of all grains at the principal Meat packing, 6 markets Cattle............. _ _ _ _ _ _ _ _ _ _ _ _ __ market centers of the District were comparatively · light, 37.o 4 1•9 Calve..,__ _ _ _ _ _ _ _ _ _ _ _ __ 30.2 especially those of wheat and oats which were sharply less than 56.7 Hogs............... _ _ _ _ _ _ _ _ _ _ _ __ 13.1 55.9 in January, 1933. Marketings of all species of livestock were 26-4 18.7 Sheep.....· - - - - · · · - - - - - - - - - heavier than in either the preceding month or the corresponding Stockcr and feeder shipments, 4 markets Cattle_ _ _ _ _ _ _ _ _ _ _ _ _ __ month last year and about normal for the season. -7.1 1.7 Member Bank Operations Loans and discounts of reporting member banks continue to contract and investment holdings to expand. According to the combined weekly condition statements of fifty-two banks, their total of loans and ·discounts as of February 14 was the lowest in recent years, 2.5 per cent less than on January 17 and 7 per cent less than on February 15 last year. The decline in four weeks was in "all other" loans. During the fifty-two Calve_ _ _ _ _ _ _ _ _ _ _ _ _ __ Hogs.. _ _ _ _ _ _ _ _ _ _ _ _ _ __ - Sheep.......· - - - - - - - - - - - - - - - ~2.9 8.o 147.1 9.8 24•5 8.8 weeks loans secured by stocks and bonds showed a reduction of f,2,000,000 and "all other" loans a loss of f,13,000,000. Investment holdings are now at high record levels and the increases of II.I per cent in four weeks and 34.8 per cent in fifty-two weeks were virtually confined to purchases of United This Copy Released For Publication In Morning Newspapers. February 28. 2 THE MONTHLY REVIEW States Government secur1t1es as investments in other bonds, stocks, and securities, although 2.8 per cent larger on February r 4 than four weeks earlier, were fractionally smaller than one year ago. Iet demand deposits of these banks increased 4.r per cent in four weeks and 27.4 per cent during the year, whereas, time deposits have declined o.6 per cent since January 17 and 5.8 per cent since February 15, 1933. Government deposits were much larger on February q than one month or one year earlier. Principal resource and li ability items reported by fifty-two banks as of the three dates, indicating the changes in four weeks and fifty-two weeks: Feb. 14,1934 Loans and investments-total.. Loans and discounts- totaL .. _. Secured by stocks and bonds All other loans and discounts lnvestments-tota U.S. securities ........................ Other bonds, stks, and sec ..... Reserve with F. R. bank............ Net dem and deposits .................. Time deposits.............................. Government deposits Jan. 17,1934 Feb. 15,1933 $5I I ,000,000 $467,000,000 204,000,000 214,000,000 199,000,000 61,000,000 61,000,000 63,000,000 I 5I ,000,000 138,000,000 143,000,000 341,000,000 307,000,000 253,000,000 201,000,000 232,000,000 143,000,000 I 10,000,000 106,000,000 109,000,000 82,000,000 55,000,000 75,000,000 388,000,000 404,000,000 3 I 7,000,000 I 64,000,000 173,000,0000 163,000,000 21,000,000 2,000,000 6,000,000 $540,000,000 Federal R eserve Bank Operations The weekly condition statement of the Federal Reserve Bank of Kansas City and branches as of February 14 showed holdings of bills rediscounted for member banks totaled but '$657,160, a new low post-war amount. This total represents decreases of $637,451 since January IO this year and $14,403,341 since February 15 last year. Holdings of bills purchased, although $1,950,880 larger than a year ago, were $1,816,665 smaller on February 14 than five weeks earlier. No additional purchases of United States Government securities were made during the five weeks' period and present holdings are the largest of record, exceeding those as of the corresponding date last year by 49.9 per cent. Member banks' reserve deposits, which increased 4.2 per cent in five weeks, are 62.9 per cent larger than a year ago. A slight gain in Federal reserve note circulation during the five weeks' period was partially offset by a decline in the amount of Federal reserve bank notes outstanding. · Total note circulation is now $15,826,720 greater than a year ago, the $9,433,850 of Federal reserve bank notes issued being entirely new and Federal reserve note circulation exceeding the total of February 15, 1933, by $6,392,870. The principal resource and liability items for the three dates under review are here shown: Feb. 14, 1934 J an. 10, 1934 Feb. I 5, 1933 Total reserves .... - - -- $170,248,181 $162,281,335 $II8,938,362 Redemption Fund F.R.B. Notes 500,000 500,000 Bills discounte..,___ _ _ 657,160 1,294,6II 15,060,501 842,030 Bills purchased.·-···· -- - 2,792,910 4,609,575 U.S. securities .. - .. _ _ _ _ 83,444,200 83,444,200 55,670,100 Total bills and securities............ 86,894,270 89,348,386 71,572,631 Total resources .... _ _ _ _ _ 292,020,540 280,639,398 214,166,029 F. R. notes in circulation.......... 107,325,585 106,578,035 100,932,715 F. R. bank notes in circulation.. 9,433,850 9,596,600 Member banks' reserve deposits 129,549,933 124,271,197 79,509,188 The discount rate of the Federal Reserve Bank of Kansas City, on all classes of paper and all maturities, was reduced fro m 3½ to 3 per cent, effective as of February 9. Federal Reserve Bank Clearings Check collections in January, through the Federal Reserve Bank of Kansas City and branches at Omaha, Denver, and Oklahoma City, increased 5.2 per cent in amount and 5.5 per cent in items handled as compared with the December totals. Increases over January last year were large, amounting to 49 per cent in dollars and 57.5 per cent in items. January check collections, through this bank and branches, with comparisons: January 193.,...__ _ _ _ _ _ ._ _ __ December 1933................. _ __ __ January 1933 _ _ _ _ _ _ _ _ __ ITEMS 5,841,067 5,535, 101 3,708,108 AMOUNT $733,545,000 697,585,000 492,:211·,000 Bank Debits Reports from banks in twenty-nine Tenth District cities disclose that during the four weeks' period ended January 31 debits to individual accounts declined 2.9 per cent as compared to the preceding four weeks ended January 3, but were 9. 5 per cent larger than in the corresponding four weeks of 1933. Only six of the twenty-nine cities failed to show gains over a year ago. The increase for 265 cities in the United States over the like period last year was 8.3 per cent. PAYMENTS BY CHECK Per cent FouR WEEKS ENDED Change Feb. 1, 1933 Jan.31,1934 Albuquerque, N. M. 8.3 7,n8,ooo $ $ 6,573,ooo Atchison, Kan 2,280,000 7.8 2,458,000 Bartlesville, Okla....................... 20,009,000 18,983,000 5-4 Casper, Wyo - 17.5 3,164,000 3,835,ooo Cheyenne, Wyo........................... 1 4,312,000 5.3 4,54 ,000 Colorado Springs, Colo ..-........... 10,143,000 3.5 9,797,000 4.8 Denver, Colo, .. - .. 91,629,000 95,988,000 30.2 Enid, Okla................................... 6,344,000 4,874,000 I 5.1 Fremont, Nebr 1,954,000 1,697,000 16.1 Grand Junction, Colo ................. 1,350,000 1,567,000 19•7 Guthrie, Oki 1,226,000 1,024,000 6.o Hutchinson, Kans ....................... 6,679,000 7,o79,ooo 62.7 Independence, Kans ................... 3,103,000 5,049,ooo -12.8 Joplin, Mo ................................... 7,283,000 6,351,000 -12.0 Kansas City, Kans ..................... II,801 ,000 10,389,000 21 4,999,000 Kansas City, Mo......................... 204,083,000 5.3 -10.7 2,900,000 2,591,000 Lawrence, Kans.·-······················· 1 Lincoln, Nebr 16,942,000 19,571,000 5-5 12.6 Muskogee, Oki 5,961,000 5, 295,000 1 Oklahoma City, Okla ................. 000 52,007,000 5-3 59,947, Okmulgee, Okla. 0.4 1,916,000 1,924,000 16.1 Omaha, Nebr... 85,026,000 98,732,000 - 1,0 Pittsburg, Kans ........................... 3,043,000 3,074,ooo Pueblo, Colo II,857,000 8,725,000 35.9 Salina, Kans 17.8 6,129,000 5,205,000 26.6 2 000 18,921,000 3,955, St. Joseph, Mo.·--······················· 12,546,000 II,329,000 - 9.7 Topeka, Kans.·--······ Tulsa, Oki 18.9 62,520,000 74,311,000 Wichita, Kans ............................. 4.1 29,062,000 27,913,000 Total, 29 cities ............................ Total, United State 'f, 746,79 1,000 1, 26,130,318,000 682,293,000 24,134,330,000 9·5 8.3 Business Failures Of the 48 business failures occurring in the Tenth District during January, 8 were manufacturing, 38 trading, and 2 other commercial, according to Dun and Bradstreet, Incorporated. This was the smallest number of failures reported for any month since July, 1921, and 66 less than occurred in January, 1933. The amount of liabilities involved in these insolvencies was less than reported at any time since August, 1920, or 78.1 per cent below the total of a year ago. Defaults in the United States, although slightly more numerous than in either of the four preceding months, were less numerous than for any January since 1920. Liabilities were also the lightest for the month in fourteen years. Insolvencies in this District and the United States as reported by Dun and Bradstreet, Incorporated: Janu ary 1934·-····················· December 1933 ................... . January 193.\--- -- - TENTH DISTRICT Number Liabilities 48 '/, 403,280 56 520,928 II4 1,842,215 UNITED STATES Number Liabilities 1,364 $32,905,428 1,132 27,200,432 2,919 79,100,602 THE MONTHLY REVIEW 3 RETAIL TRADE AT 32 DEPARTMENT STORES IN THE TENTH FE DERAL RESERVE DISTRICT AMOUNTS COLLECTED AccouNTS RECEIVABLE SALES STOCKS (RETAIL) STOCK TURNOVER Stores Jan. 1934 Jan.31,1934 Jan.1934 Jan.31,1934 Compared to Compared to Report- Compared to Compared to January Dec. 30, 1933 Jan. 31, 1933 Dec. 1933 Jan. 1933 ing Jan. 1933 Dec. 30, 1933 Jan. 31, 1933 1934 1933 Kansas City _____... -......... -... 4 12.6 .18 .16 2.6 0.5 33.7 26.8 -23.9 - 6.3 Denver__ __ _ _ 4 21.3 20.I 18.7 .25 .21 -22.2 5.3 - 5.7 - 0.3 Oklahoma City___ 3 25.2 -10.6 0.3 - 6.o 4.6 16.9 7.1 .33 .26 12.5 21.3 11.4 - 7.6 27.0 Tulsa_···- -·------- -- - 3 22.3 .33 .35 Wichita ........ _ _ _ _ 3 24.9 20.0 15.9 5.0 -11.4 .23 .16 - 3.8 Other cities .....__ ....... _... _.. _.. 15 18.4 - 0.1 10.9 16.5 .24 .22 - 8.7 11.5 TotaL---·-·--··-·--·---··-····-·-·· 32 19.3 - 4.6 3.4 .25 .21 NOTE: Percentage of collections in January on accounts December 30, all stores reporting 40.0. Savings Savings deposits in forty-five selected banks in leading cities of the District totaled $I05,081,281 on February 1, or $3,271;634 more than on January 2 and $5,271,657 less than on February 1, 1933. Savings accounts increased in number 1.9 per cent during the month, but the number as of February I was 6 per cent smaller than a year earlier. The amounts of deposits and numbers of depositors as reported by the forty-five banks for the three dates: Savings Accounts F ebruary 1, 1934------·-------·---·---·---···-·-··· 381,125 January 2, 193_ _ _ _ _ __ _ _ 374,089 February 1, 193_- - - ------·-----·---··-·· 405,581 Savings Deposits $105,08 I ,28 I 101,809,647 I 10,352,938 Trade After four years of declining volume, January sales of merchandise in dollars, at both wholesale and retail establishments in this District, exceeded the totals for January of the preceding year. The increase over January, 1933, reported by thirty-two department stores, was 19.3 per cent and that for five wholesale lines combined was 35.9 per cent. In January, 1928, department store sales were 3.7 per cent larger than in 1927 and wholesalers' sales were the same. The increases for January this year over January last year are the largest ever reported for that month over thJ like month of the year before. Department store sales declined 51.6 per cent, or about the usual seasonal amount, as compared to December and wholesalers' sales improved 8.6 per cent, the first increase since 1930. As reported by individual lines, sales of dry goods, groceries, furniture, and drugs at wholesale were larger than in the preceding month this year or the corresponding month of 1933. Sales of hardware declined 16.1 per cent as compared to December, or less than in recent years, and were 57.4 per cent larger than a year ago. Inventory changes during the month reflect a decline of 4.6 per cent in merchandise on hand at department stores but an increase of 9.1 per cent in wholesalers' stocks. Department store stocks as of January 31 this year were 3.4 per cent larger and wholesalers' stocks were IO per cent larger than on January 31, 1933. The increase in department store stocks was the first reported for the month in six years. All wholesale lines, except drugs which showed a loss of 5 per cent, reported inventories as substantially larger on January 31, 1934, than a year ago and, groceries and furniture excluded, than on December 30, 1933. Reporting Stores Dry goods·- -··-··-·-·-·--····-· 6 Groceries.·-·---·--···--·-·---·-- 5 Hardware·-----·-·------···---· 8 Furnitur 5 Drugs 7 -22.8 I .6 I .O Collections same month last year 33.7. 22.8 Collections were slightly better in January than in December and quite a bit better than a year ago. Department stores reported 40 per cent of amounts outstanding on December 30 collected in January as compared to collection percentages of 39.I per cent in December and 33.7 per cent in January, 1933. Lumber Sales of lumber in board feet at I 56 retail yards in the District during the month of January were 21.9 per cent larger than in December and 40.4 per cent greater than in January, 1933. Sales of all materials in dollars were 32.1 and 49.2 per cent, respectively, larger than in either the preceding month or the corresponding month last year. Lumber stocks as of January 31 were I per cent smaller than one month earlier but I.I per cent heavier than on the like date of the previous year. Collections in January amounted to 33.8 per cent of amounts outstanding at the close of 1933. This ratio compares with collection percentages of 26.4 per cent for December and 21.4 per cent for January, 1933. The volume of business at the reporting yards during January, as compared with the preceding month and like month last year, in percentages of increase or decrease: January 1934 Compared to December 1933 J anuary 1933 Sales of lumber, board feet...·---·------------------··---· 21.9 40.4 Sales of all materials, dollars .......·----------·-----··-· 32.1 49. 2 Stocks of lumber, board fee~- - 1.0 1.1 Outstandings, end of month' - - - - 0.3 - 3.6 National lumber production, as indicated by reports to the National Lumber Manufacturers Association, is running about 35 per cent above a year ago. Shipments are IO per cent heavier and orders booked about 25 per cent greater. M ill stocks are slightly smaller than at this time last year. Carloadings have been the largest in two years. Building Construction activity, favored by mild weather and enhanced by Civil Works projects, was substantially greater in January than a year ago. The F. W. Dodge Corporation reported residential construction increased 30.4 per cent and the value of total contracts awarded in the District as 88.6 per cent larger than in January, 1933, and the largest for the month since 1931. Both residential and total awards were somewhat below the December figures. WHOLESALE TRADE IN THE TENTH FEDERAL RESERVE DISTRICT AMOUNTS COLLECTED OUTSTANDINGS SALES Jan. 1934 compared to Jan. 31, 1934 compared to Jan. 1934 compared to Dec. 1933 Jan. 1933 Dec. 30, I 933 Jan.31,1933 Dec. 193,1 Jan.1933 22.3 - 30.1 - 2.8 - 9.3 48.4 37· 2 26.6 -10.6 - 9.3 II.I - 8.5 9.5 -25.0 7. 1 - 1.0 47· 1 - 16.1 57-4 - 2.2 10.8 43-3 1.4 29.0 77-1 17-3 - o.6 0.I 4.7 39.5 3.7 STOCKS Jan. 31, 1934 compared to Dec. 30, 1933 Jan. 31, 1933 6.6 25·3 - 2.8 2.5 6.8 27.0 - 4.9 47.9 10.0 - 5.0 THE MONTHLY REVIEW 4 The F. W. Dodge Corporation report follows: RESIDENTIAL Tenth District United States Jan. 1934---·· $1,235,714 $15,no,400 Dec. 1933 .._ 1,299,694 23,899,6oo Jan. 1933___ 947,485 n,950,900 TOTAL AWARDS Tenth District United States J 7,857,569 $187,463,700 n,078,814 207,209,500 4,165,200 83,356,000 Building departments in seventeen cities of the District issued more building permits during January than in December or January, 1933. Estimated construction costs of projects for which permits were issued exceeded the December lettings by 4.1 per cent and the January, 1933, expenditures by 35.4 per cent. Regardless of these increases, building activity amounted to but a fractional part of normal operations. Permits issued and estimated construction costs as reported by individual cities: BUILDING PERMITS IN TENTH DISTRICT CITIES PERMITS EsTIMATED CosT 1934 1933 1934 1933 Albuquerque, N. M 8,567 29 25 ' 12,250 Cheyenne, Wyo. 1,125 7,362 15 4 Colorado Springs, Colo•.- ......... 18 2,715 6,750 7 Denver, Colo._ 166 81,085 166,76o 172 Joplin, Mo. ______ 6 2,200 8,900 7 II 21,325 14 8,315 Kansas City, Kans....·-···---·· Kansas City, Mo 46,600 66,300 II4 74 Lincoln, Nebr 28,492 13 3,700 34 161,904 38 Oklahoma City, Okla·-····-·69 357,000 Omaha, Nebr. JI 19 29,725 77,07° Pueblo, Colo 26 20 6,759 3,3 15 2 2,000 Salina, Kan 12,450 7 Shawnee, Okla. II 4,225 1,275 7 16 12 St. Joseph, Mo 28,875 39,990 26 Topeka, Kans 16,320 24 8,075 Tulsa, Okl 71 133,577 54,389 49 Wichita, Kans ... _ 14,110 24 38 26,245 ' Total 17 cities, January 619 580 $833,887 $615,863 Flour Production Mills in the Tenth District produced 1,900,810 barrels of flour during January, 236,627 more than in December, and 59,906 less than in January, 1933. Output, equivalent to 94 per cent of normal, was the smallest for any January since 1926 but the largest for any month since last July. Operations were equal to 59.4 per cent of full-time capacity as compared to 54 per cent in December and 63.4 per cent in January of last year. The number of barrels of flour produced at the principal milling centers in January with comparisons, as estimated from the weekly reports of southwestern mills to the Northwestern Miller: Atchiso Kansas City Omaha__ Salina_ Wichit Outsid Jan. 1934 Barrels Dec. 1933 Barrels 126,048 523,417 115,688 46o,6o2 105,644 152,224 105,439 13 1,590 168,034 143,668 131,848 219,440 825,443 707,196 807,s:26 Jan. 1933 Barrels 129,200 580,287 92,415 Tot...___________ 1,900,810 1,664,183 1,96o,716 ~nited Stat....._______ 5,565,o63 5,176,231 5,302,129 *Represents about tw~thirds of the total output in the United States. Business improved in January with sales about equally divided between bakery and family trade. Orders were principally for small lots for immediate shipment indicating buyers' stocks are low. Large bakers are reported well stocked for this crop year, with any future requirements depending upon a larger usage of flour. Shipping directions were fair. Government disbursements improved the movement of flour into consumers' hands. Prices advanced about I 5 cents per barrel to the third week of the month then slipped off to close a shade higher. Clear:s and low grade flour continued a drag on the market and sold at heavy discounts. Export trade was unimportant and confined to the Latin Americas. Inquiry for millfeeds was steady and general in a small way. Offerings were limited and prices advanced f,1.50 to f,2 per ton the forepart of the month. Bran was in better demand than shorts. Grain Marketing January receipts of wheat and oats, at the~ve]principal grain markets of the Tenth District, were the lightest for that month in fourteen years of record as were also those of barley and kafir, 1933 excepted. Compared to the ten-year average volume for the month, arrivals of wheat declined 56 per cent, oats 63, barley 58, and kafir 72 per cent. The demand for wheat and oats exceeded offerings and stocks in public elevators were reduced, with holdings of wheat as of January 31 lighter than one year earlier. Marketings of rye were unusually heavy. Government loans of 45 cents per bushel on corn at the farm cut marketings of that grain somewhat. January receipts, although the heaviest for the month in three years, were 44 per cent below normal and 10.8 per cent under the December total. Receipts of grain at the five markets during January with comparisons: Wheat Corn Bushels Bushels Hutchinson ___ 30,000 359,100 Kansu City__ 2,200,000 1,783,500 820,800 1,090,6oo Omaha--·········· St. Joaeph___ 251,200 1,o6o,500 Wichita..... _____ 52 3,500 373, 100 Oats Rye Bushels Bushels 3,000 168,000 90,000 52,000 35,000 246,000 16,500 January 1934__ 4,154,6oo 4,337,700 December 1933 4,093,000 4,863,150 January 1933- 6,317,550 2,574,150 485,500 650,500 997,500 125,000 37,6oo 30,000 Barley Bushels 1,250 32,000 19,200 Kafir Bushels 16,900 173,6oo 2,6oo 2,6oo 55,050 193,100 246,500 162,900 33,300 ,w,500 Prices of all grains advanced somewhat during January and at the close were virtually double the near record lows of a year ago. Rye made a net gain of 8 cents, wheat 6½, kafir 4, and corn, oats, and barley I to 1½ cents per bushel for the month. Cash grain prices at Kansas City in cents per bushel: No. No. No. No. No. No. I hard & dark wheat 2 mixed corn·---······· 2 white oats.............. 2 rye_______ 2 barley_ _ __ 2 kafir_ _ _ __ Feb. 14 Jan. 31 Dec. 30 Feb.14 Jan.JI Dec. 31 1932 1933 1933 1934 1934 1933 $.42,½ $.42.½ J.40,½ J.84.½ $.86 .½ J.8O .,w¾ ,44.½ .43.½ .21¾ .21¾ .21.½ .16½ .17 .36¼ .37¾ .36.½ .18 .6o .63.½ ·SS .33.½ .33.½ .31.½ .23 .23 .23 •44 .45.½ •43 .41 .43 •44 .75 .77 .73 Agriculture Weather so far this year has been unusually mild and open. Very little moisture has fallen and a severe soil moisture deficiency continues generally. The ground works well and plowing for spring planting has made excellent progress the past three weeks. Winter wheat is in fair to good condition in the eastern third of the district and has been pastured extensively. In central and western areas the condition is spotted, ranging from poor to fair with some fields holding little promise of coming to harvest. Soil blowing has caused some damage in these sections where the surface soil was dry until the second week of February when a three to five inch snow temporarily relieved the situation. A large acreage is in a critical state subject to severe injury by a sudden freeze. The condition of rye is similar to that of wheat. Alfalfa has wintered well. So far fruit prospects are good, the present THE MONTHLY REVIEW danger being that warm temperatures will advance the buds too rapidly. Pruning is well advanced. Oats seeding has commenced in the southern part of the District and preparations are going forward for the planting of potatoes in the Kaw Valley. Nebraska reports shipments of potatoes, from the western part of the state to February 1, as twice as heavy as a year ago at prices ranging from '/,1 .20 to '/,1.40 per hundredweight as compared with 42 to 50 cents in 1933. Returns from sugar beets, beans, wheat benefit checks, and corn loans have also aided producers. Contracts in pursuance of the Government's corn-hog program, calling for a 20 per cent cut in the corn acreage and a 25 per cent reduction in swine numbers, the producers to be compensated, are now being signed. Federal loans on corn at the rate of 45 cents per bushel on the farm are being made. Most sections have received their first payment under the wheat allotment plan. According to the United States Department of Agriculture index of farm prices, the composite average for all groups of farm products stood at 70 per cent of the 1910 to 1914 base period average of 100 in January, or 19 points above January, 1933. By groups, grains, fruits and vegetables, and cotton and cotton seed showed the greater, and meat animals the lesser, gains, with poultry products the only group to show a loss. The index of prices paid by farmers for commodities bought advanced from 102 in January last year to 116 in January, 1934. A net gain of 10 points, or 20 per cent in farm purchasing power, was indicated for the year by the advance in the ratio of prices received to prices paid which now stands at the 1910-14 average. FARM TAXES: A new index of farm taxes, computed on a tax per acre basis covering the years 1913 to 1932, inclusive, has just been issued by the Department of Agriculture. According to these index numbers, per acre taxes were highest in Nebraska in 1921, Colorado 1927, Missouri, Kansas, and the United States 1929, Oklahoma 1930, and Wyoming and New Mexico 1931. Compared to the peak, the index of 1932 taxes showed the following percentage reductions by states: Colorado 25.5; Kansas 29.4; Missouri 21.8; Nebraska 23.8; New Mexico 8.5; Oklahoma 26.8; Wyoming 16.6; and the United States 21.6 per cent. In 1932 New Mexico had the lowest average per acre tax of any state in the Union and Kansas the highest average for any state of this District. Farm real estate taxes in cents per acre for the years indicated: 1932 Colorado.---····· t, .22 Kansas ..........- .. .41 Missouri............ .37 Nebraska .......... .36 New Mexico._ .07 Oklahoma. ___ ··· .34 .08 Wyoming......- .. United States._ .46 1931 1930 1929 1926 t, .29 t, .29 .42 .08 .41 •45 .44 .07 .47 .58 •47 .45 .07 .46 .54 •44 .42 .IO .09 ·09 .07 .53 .57 t, .23 .53 t, .28 .55 .41 .58 1921 t, .29 .50 .38 .47 .o6 .o6 .39 .40 .08 .54 .56 t, 1913 .12 .21 .14 .19 .04 .20 .04 .24 Livestock January receipts of livestock at the six principal market centers of the District, including hogs shipped direct to packers' yards, were considerably heavier for all classes than in either December or January, 1933. Receipts were, however, slightly short of the ten-year average for all classes except horses and mules, which were about 7 per cent in excess of the normal supply and the largest for the month since 1930. Marketings of cattle were the heaviest for the month since 1930 and calves since 1929, representing delayed marketing awaiting improved prices. Offerings of hogs and sheep and lambs, although 13.7 5 and 16.8 per cent, respectively, heavier than a year ago, were otherwise the lightest for any like month since 1926 and 1928. Prices1advanced generally during.,January although receipts in all branches were heavier than a year ago. In most divisions cattle prices strengthened gradually and nearly all classes closed well above the 1933 lows and higher than at any time since last September. Values ranged from 25 to 75 cents higher, with good to choice light yearlings advancing the most. Only three divisions, slaughter calves, stockers, and stock calves, sold lower at Kansas City than a year ago. In anticipation of reduced supplies in the near future, hog prices also moved up in the face of heavy marketing. Killing classes gained 25 cents over the December close and the January, 1933, quotations. Stock pigs lost 50 cents to '/,1 although offerings were limited. Sheep and lambs, which have been in favor for some time, made phenomenal advances of '/,1.10 to 'l,1.70 per hundredweight, with practically all classes reaching the highest levels since 1931. The top price for cattle at Kansas City in January this year was $7, hogs '/,3.50, fed wooled lambs '/,9.10, and fat ewes $4. 50 per hundred pounds. In January, I 933, cattle reached '/,6.6o, hogs '/,3.25, and lambs '/,6.35. Government buying of cutter and top canner cows, commencing January 5, terminated February I. A large number of hogs were also purchased during January for the Government account. The processing tax on hogs was boosted from '/,1 to 'f,1.50 per hundredweight on February I. On March 1 the tax is to be hiked to '$2.25. At no time since last November, when these taxes went into effect, has the price of pork been less than on the corresponding date of the year before. Water supplies are short and many farmers have had to haul stock water a good part of the winter but otherwise livestock has required less care than usual. Stockmen have been able to utilize ranges, pastures, and forage feeds and conserve grain and hay supplies. Livestock has wintered well and thrived generally. The Division of Crop and Livestock Estimates, United States Department of Agriculture, reports livestock on western ranges in fair to good condition, with winter losses unusually slight. Favorable weather conditions, with little snow, permitted an unusual amount of ranges being used in January. Ranges are unusually dry and short but purchases of supplemental feed have been light even in dry areas. Breeding ewes are wintering much better than expected. Lambs on feed have made good gains. Offers up to 30 cents a pound for the 1934 wool clip are reported from Wyoming. In 1933 wool sold at 20 cents a pound and in 1932 most sales were at 10 cents a pound or less. LIVESTOCK ON FARMS JANUARY 1: Reporting on the estimated numbers of livestock on farms January 1, the United States Department of Agriculture commented in part as follows: "An increased number of cattle and decreases in the numbers of all other species of livestock during the year 1933 are shown by the annual inventory estimates of livestock on farms of the Crop Reporting Board of the United States Department of Agriculture, made as of January 1, 1934. When the numbers of all species are converted to animal units, which allow for differences in size and feed requirements of the several species, practically no change is shown in total animal units. ''The total value of all livestock on farms January 1, 1934, was f,2,854,217,000 an increase of about 7 per cent over the total value on January I, 1933. In the case of horses, mules, and sheep sharp increases in value per head resulted in a total value for each of these species higher than a year ago in spite of the decreased numbers. Value per head of cattle was lower this year than a year earlier. The increased number of cattle was not sufficient to offset this decreased value per head and the total value was lower than a year earlier. Both the value per head and total numbers of hogs were lower than a year earlier, with a resulting total value 10 per cent lower. 6 THE MONTHLY REVIEW NUMBERS AND VALUE OF LIVESTOCK ON FARMS, RANCHES, AND RANGES JANUARY 1, FOR THE YEARS SHOWN, AS EST!MATED BY THE UNITED STATES DEPARTMENT OF AGRICULTURE NUMBER. VALUE PER HEAD TOTAL VALUE YEAR All Cattle and Calves ______ 1934 67,352,000 $1,231,280,000 $18.28 1 9·95 1,307,641,000 1933 65,552,ooo 26.62 I ,667,843,000 1932 62,656,000 2,880,802,000 50.81 1928 56,701,000 2,005,351,000 1925 63,u5,ooo 3 1•77 3,703,896,000 1920 70,325,000 52.67 Milk Cows and Heifers_. 1934 1933 1932 1928 1925 1920 All Sheep and Lambs ______ 1934 1933 1932 1928 1925 1920 26,062,000 25,277,000 24,475,000 22,129,000 27.09 29.25 39.57 22,505,000 73-47 48.38 21,455,000 81.51 51,374,000 51,736,000 53, 1 55,000 45,121,000 38,392,000 40,643,000 3.79 2.90 3.40 10.22 9.68 10.45 706,074,000 739,43°,000 968,460,000 1,625,875,000 1,088,900,000 1,748,820,000 194,636,000 l 50,017,000 180,780,000 461,193,000 371,639,000 424,644,000 1934 1933 1932 1928 1925 1920 61,320,000 58,988,000 61,772,000 55,770,000 6o,159,ooo 6.13 13.17 13_15 20.00 Horses and Colts ________ _____ 1934 1933 1932 1928 1925 1920 11,942,000 66.42 793,184,000 12,197,000 12,621,000 14,768,000 16,640,000 20,092,000 53.76 655,653,000 53.38 66.68 64.28 96.48 673,649,000 984,763,000 l ,069,6 54,000 1,938,447,ooo 81.56 60.17 402,171,000 302,918,000 310,058,000 361,562,000 449,480,000 452,486,000 Swine, including Pigs-..... Mules and Mule Colts. __ 1934 1933 1932 1931 1930 1929 55,976,ooo 4,931,000 5,034,000 5,120,000 5,226,000 5,366,000 5,496,000 4. 16 4.21 232,946,000 258,280,000 361,485,000 813,639,000 733,220,000 I ,203,052,000 60.56 69.19 83.76 82.33 Meat Packing As indicated by packers' purchases of meat animals, at the six market centers of the District, operations at meat packing plants were considerably heavier in all departments during January, 1934, than in the preceding month and like month last year or normally at this season. Compared to a year ago purchases of cattle increased 37 per cent, calves 56.7 per cent, hogs, including direct purchases, 13.1 per cent, and sheep and lambs 26.4 per cent. The slaughter of cattle was the largest for the month since 1927, calves since 1928, and hogs since 1931. The January slaughter of cattle and calves in the United States, under Federal inspection, was the heav~est in recent years and of hogs the largest since 1929. Per capita consumption of Federally inspected meats and lard increased to 103.4 pounds in 1933, 4,½ pounds more than in 1932, and 1.4 pounds above the five-year average. By classes, probably 60 per cent was pork and lard, 35 per cent Kansas City...... ----···· Omah St. Joseph.. ·-········-····· Denver______ Oklahoma CitY--······· Wichita.. ·-··-·············· Cattle 132,996 130,396 41,003 32,731 28,618 21,046 386,790 January I 934--··········· December 1933.......... 281,747 315,669 January 1933---······· *Includes 218,363 hogs shipped beef, and 5 per cent lamb and :'prntton. l;Total production under Federal inspection was the largest in seven years. Livestock slaughtered under Federal inspection during January of the past six years as reported by the Bureau of Agricultural Economics: 1934-----···· I 933---······· I 932 _______ _ 1 931... _______ _ I 930·-··--··· I 929---·-····· Cattle 831,000 612,000 Calves 471,000 345,000 653,000 345,000 651,000 713,000 736,000 379,000 374,ooo 369,000 Sheep and Lambs 1,407,000 1,332,000 1,679,000 1,426,000 1,225,000 1,150,000 Hogs''t,i 5,39 1 , 000 4,700,000 5,027,000 5,362,000 5,001,000 5,738,000 Poultry and Dairy Products Production, market receipts, storage holdings, and consumption of butter are more favorable than they have been for some time. Market receipts are running about 13 per cent under a year ago. Improved demand and Government purchases have reduced the abnormally heavy storage holdings markedly the past two months. Butter and butterfat prices have advanced 8 cents per pound from the extreme lows of the first of the year to February 14, on which date they were 5 cents higher than one year earlier. Fluid milk prices are about 8 cents per hundredweight higher than a year ago. Milk production in the United States was nearly 9 per cent lower on February 1 than on that date last year. Egg prices, which declined from 25.½ cents to 9 cents per dozen during January, 1933, have been comparatively steady this year, with the mid-February price of 14,½ cents a dozen comparing favorably with the January peak of 17 cents. Mild temperatures have stimulated production which now exceeds that of a year ago but consumption is somewhat better and storage holdings are practically cleaned up. Market receipts of poultry are about the same this year as last and, with the exception of broilers which were quoted 5 cents per pound higher on February 15 than a year ago, prices were practically the same but above the December and January lows. The Government reported a decrease of 2,½ per cent in the number of hens on farms in the United States on January 1, 1934, as compared to January 1, 1933. Cold Storage Holdings The Bureau of Agricultural Economics reported February 1 United States cold storage holdings of all commodities, except fruits and cased eggs, as substantially larger than on February 1, 1933. Fruits, eggs, and miscellaneous meats excluded, holdings were also in excess of the five-year average, the increases shown for the various items being as follows: beef 3.4, pork 4, lamb and mutton 24.8, lard 98.2, butter 120.9, poultry 7, and cheese 9.8 per cent. Seasonal withdrawals of beef, eggs, butter, and cheese during January were heavier, and of poultry lighter, than a year ago JANUARY MOVEMENT OF LIVESTOCK IN THE TENTH DISTRICT RECEIPTS STOCKERS AND FEEDERS PURCHASED FoR SLANGHTER Cattle Hogs Sheep Calves Hogs Sheep Calves Hogs Sheep Cattle Calves 26,848 20,017 *326,225 120,423 19,014 *341,086 2,938 149,475 2,449 19,333 74,392 u,282 13,849 2,177 9,150 87,380 3,502 142,973 6,973 3 1 3,570 377,3 25 169,122 4,001 II,068 416 176,388 76,422 6,147 33,861 165,478 93,984 644 5,7 29 105,808 14,856 19,201 10,807 9,190 267 3,142 142~587 u,715 34,599 55, 24° 29,150 4,II4 3,064 34,898 19,544 4,7°3 3,5°5 8,142 2,781 26,673 5,092 9,958 33,999 9,3 23 53,7 1 5 1,069,504 671,815 44,567 569,829 528,089 487,784 940,7o4 49,634 direct to packers' yards. 59,554 58,543 64,1 00 14,721 15,999 13,41 2 6,862 2,777 60,884 79,003 5,51 3 55,945 236,215 166,429 172,392 41,706 32,031 26,613 916,336 587,937 810,509 38b,673 325,666 3o5,894 THE MONTHLY REVIEW or the five-year average. The out-movement of shell eggs totaled 681,000 cases as compared to 84,000 a year ago, when holdings were much smaller, and supplies are virtually exhausted as the storage season draws to a close. Withdrawals of creamery butter were encouraging, amounting to 35,159,000 pounds this year as against 4,2ro,ooo pounds last year and an average of 13,139,000 pounds the past five years. Reductions the last two months are attributable to Government buying and distributing, improved demand, and a falling off in production. The surplus over the preceding year now amounts to about 58,000,000 pounds, whereas, on January 1 it was 89,000,000 pounds and two months ago ro1,ooo,ooo pounds. Present stocks of 76,051,000 pounds are still heavy as compared to normal holdings for the season of 34,422,000 pounds. Inventories of pork, miscellaneous meats, and lard increased as usual during the month and stocks of lamb and mutton, which normally decline, were enlarged. The Government also purchased pork and eggs for relief distribution and present holdings of meat include that held for the account of the Federal Surplus Relief Corporation. Cold storage holdings in the United States as reported by the Bureau of Agricultural Economics: *Feb. I *Jan. I 1934 Beef, lbs.· - - · · - - - - 79,172 Pork, lbs............................................... 627,323 Lamb and mutton, lbs... .................... 3,193 Poultry, lbs........................................... 123,479 **Turkeys, lbs......................................... 15,745 Miscellaneous meats, lbs.·--··············· 65,661 Lard, lbs ......................... _ _ _ _ 132,297 Eggs, cases.... _ _ _ _ _ 52 733 Eggs, frozen (case equivalent).......... 1,425 1,757 Butter, creamery, lbs.·-- --················· 76,051 111,210 Cheese, all varieties, lbs..................... 78,830 91,994 *Subject to revision. **Included in Poultry. (ooo 1934 73,671 728,403 4,177 120,157 19,947 71,463 169,098 Feb. Feb. 1 5-Yr.Av. 39,550 71,248 575,084 700,177 2,029 3,347 104,833 n2,325 16,728 12,6o5 77,626 47,313 52,841 85,318 75 37 2 1,327 1,638 34,42 2 17,833 63,321 71,807 omitted). I 1933 Soft Coal Production Production of bituminous coal at mines in this District declined during J anuary to an estimated total of 1,797,000 tons, as compared to 1,825,000 tons in December and 1,629,000 tons in January, 1933. January output was, with the exception of last year, the lightest in many years and equal to only 60 per cent of the ten-year average tonnage. The estimated production figures for each of the six coal producing states: of the District follow: *Jan. 1934 Tons Colorado.--···············- - Kansas ......................................... . Missouri.................. _ __ New Mexico _ _ _ __ Oklahoma·--································· Wyoming..................................... . 526,000 240,000 369,000 121,000 160,000 381,000 Dec. 1933 Tons 591,000 220,000 331,000 115,000 136,000 432,000 Jan. 1933 Tons 553,000 200,000 313,000 115,000 128,000 320,000 Total six states .. _ _ _ _ _ 1,797,000 1,825,000 1,629,000 Total United States.................... 32,935,000 29,600,000 27,060,000 *Estimated from the weekly reports of the United States Bureau of Mines. Zinc and Lead Shipments of zinc ore and lead ore from mines in the Tri-state district during the first five weeks of the new year were 32.6 and 22.6 per cent, respectively, smaller than in the same period last year. However, as prices were much higher the value of deliveries was practically the same this year as last. A year ago heavy shipments of zinc ore were made from surplus stock, whereas, at present producers are reluctant to sell at prevailing prices. Strikes at smelters have retarded ship- 7 ments of lead ore and field stocks are accumulating. Some mills are still shut down and numerous small properties are idle. Zinc ore advanced from $25 per ton the forepart of January to $30 per ton the second week of February. Last year prices declined from $18 to $16 per ton during the like period. Lead ore remains stationary at $42.50 per ton, or $ro higher than a year ago. Demand for all concentrates is reported brisk at present prices. The tonnage and value of zinc ore and lead ore shipped from mines in Oklahoma, Kansas, and Missouri: Oklahoma·--····································· Kansas ...................... _ _ _ _ _ Missouri............................................ Zrnc ORE Tons Value 18,276 '$467,787 6,787 176,689 577 14,823 5 Weeks ended Feb. 2, 1934.......... 5 Weeks ended Dec. 30, 1933........ 5 Weeks ended Feb. 4, 1933.......... 25,640 28,255 38,042 LEAD ORE Tons 1,552 264 '$659,299 816,226 677,589 54 Value $ 67,122 11,468 2,337 '$ 80,927 74, 2 33 77,344 Petroleum As indicated by the weekly estimates of the American Petroleum Institute, crude oil production in the five oil producing states of the Tenth District averaged 657,000 barrels per day in January and gross production totaled 20,378,000 barrels. On this basis the January flow was 2.6 per cent below the total for December and 16.3 per cent larger than that of January, 1933, as reported by the Bureau of Mines, Department of Commerce. Output was the largest for the month since 1931 and daily average production exceeded the Federal Oil Administration allowables by 26,100 barrels. Gross and daily average production of crude oil in this District and the United States: GROSS PRODUCTIO *Jan. 1934 Barrels 14,652,000 Oklahom"------·················· Kansas ......................................... . 3,426,000 Wyoming......... _ _ __ 921,000 86,ooo Colorado.--····-- - -1,293,000 ew 1exico·--··-························· Dec. 1933 Barrels 15,208,000 3,47°,000 899,000 77,000 1,277,000 Jan. 1933 Barrels 12,482,000 2 ,933,000 1,010,000 88,ooo 1,003,000 Total 5 states ............................. . Total United States .................... 20,931,000 72,060,000 17,516,000 63,998,000 20,378,000 69,283,000 DAILY AVERAGE PRODUCTION *Jan. 1934 Dec. 1933 Barrels Barrels 491,000 473,000 Oklahoma·--································· Kansas ......................................... . II0,000 112,000 Wyoming...................................... 30,000 29,000 Colorado.__ ······· - -- - 3,000 3,000 New Mexico _ _ __ 41,000 41,000 Total 5 states.............................. 657,000 Total United States.................... 2,235,000 *Estimated, American Petroleum Institute. Jan. 1933 Barrels 403,000 95,000 33,000 3,000 32,000 566,000 2,064,000 Crude oil stocks in the United States, as reported to the Administrator by companies holding 100,000 barrels or more, totaled 341,360,000 barrels on December 30, 1933, and 341,467,000 barrels on February 3, 1934. On February 1 mid-continent refinery operations, as measured by the number of barrels of crude oil run to refinery stills, were the largest for the date in three years and the heaviest in three months. Field operations became somewhat more active in January but are still light. Mid-continent crude oil prices continue unchanged. Schedules posted September 29 range from 76 cents to $r.o8 per barrel per gravity basis. Natural and refinery gasoline prices, which opened the year weak, turned strong and advanced. Bright stocks, heavy fuel oils, and wax were firm at the close of January. 8 THE MONTHLY REVIEW Business Conditions in the United States By the Federal Reserve Board ,..cm ~ """'"' '"° INDUSTRIAL PRODUCTI ON 1)() IJO 120 110 - ,A. \ I20 11 0 ,r\... 100 \ ,0 "\... \. r 1931 1930 '1929 so 70 f...J - '°50 90 I\ I \' "Ir'\. 80 ,., I00 I\ 60 5 1) -1932 1933 1934- - Index number of industrial production, adjusted for seasonal variation. Latest figure, January, 78. MILLION.S O, DOUARJ 600 M/LllOM.S Of DOLLA R$ 600 CONSTRUCTION CONTRACTS AWARDED Three month moving averages of F. W. Dodge data for 37 eastern states, adjusted for seasonal variation. Latest figure based on data for December and January and estimate for February, total 207.6; residential n .o; all other 185.6. PDICtNT N:RC(NT 120 I 20 WHOL [ SAL[ PRIC[S I A"./~'°' - ~o I ~ ~ 00 r· Ot ht, ~ Comn.od,hts 10 --- 60 ""'- fOQ4s , ,.. '•'t mo 1'!2~ 70 60 t'-'/'••.l I.., faunProcl,ch so 00 r-,,"~ / .. ,., 30 1n1 Indexes of the United States Bureau of Labor Statistics. By months 1929 to 1931; by weeks 1932 to date. (1926=100.) Latest figure, February, 17; farm products, '.62.1; foods, 67.4; other commodities, 78.7. au•.uo,a oroou.MS I ILLI OH S 0, OOUAftS 1 1 MEMBER BANK CREDIT .. I .J 5 ~---,. 1932 :::::--·,-- 1933 - - --i 1934 Wednesday figures for reporting member banks in 90 leading cities. Latest figures are for F ebruary 14. Volume of industrial production increased by more than the usual seasonal amount in January and the early part of February. The general level of wholesale commodity prices, after showing relatively little change during the last :five months of 1933, advanced considerably after the turn of the year. PRODUCTION AND EMPLOYMENT: Output of factories and mines, as measured by the Federal Reserve Board's seasonally adjusted index of industrial production, advanced from 75 per cent of the 1923-1925 average in December to 78 per cent in January. This compares with a recent low level of 72 per cent in November and a level of 65 per cent in January, 1933. The January advance reflected, chiefly, increases of more than the usual seasonal amount in the textile, meat packing, automobile, and anthracite coal industries. Activity at cotton mills, which had reached an unusually high level in the summer of 1933 and had declined sharply in the latter part of the year, showed a substantial increase in January. Output of automobiles also increased by more than the usual seasonal amount, while activity in the steel industry showed little change, following a non-seasonal increase in December. In the first half of February there was a further growth in output at automobile factories and activity at steel mills showed a substantial increase. Factory payrolls, which usually decline considerably at this season, showed little change between the middle of December and the middle of January, while factory 'employment declined by about the usual seasonal amount. There were substantial increases in employment and payrolls in the automobile, hardware, shoe, and women's clothing industries, while decreases, partly of a seasonal character, were reported for the hosiery, tobacco, furniture, and lumber industries. Value of construction contracts, as reported by the F. W. Dodge Corporation, showed a decline in January and the :first half of February, following a substantial increase in the latter part of 1933. As in other recent months, public works made up a large part of the total. DISTRIBUTION: Freight traffic increased in January by more than the usual seasonal amount, reflecting larger shipments of coal and merchandise. Sales by department stores showed the usual seasonal decline after the holiday trade. DOLLAR EXCHANGE: The foreign exchange value of the dollar in relation to gold currencies, which in January had fluctuated around 63 per cent of par, declined after J anuary 31 to slightly above its new parity of 59.06 per cent. PRICES: Wholesale commodity prices showed a general increase between the third week of December and the third week of February and the weekly index of the Bureau of L abor Statistics advanced from 70.4 per cent of the 1926 average to 73.7 per cent. There were substantial increases in live stock prices, wool continued to advance, and cotton reached a level higher than at any other time since 1930. Scrap steel advanced to about the level prevailing in the summer of 1933. BANK CREDIT: As a consequence of the reduction on January 31 of the weight of the gold dollar, together with subsequent imports of gold from abroad, the dollar amount of the country's stock of monetary gold increased from $4,035,000,000 on January 17 to $7,089,000,000 on February 14. About $3,000,000,000 of this increase was reflected in a growth of the cash held by the Treasury which includes gold bullion. Notwithstanding a further reduction in discounts for member banks and in acceptance holdings of the reserve banks, member banks' reserve balances increased moderately during this period, reflecting gold imports, a return of currency from circulation, and a reduction in United States Government deposits with the reserve banks. In the middle of February these balances were more than- $900,000,000 -above legal reserve requirements. At reporting member banks there was a growth between January 17 and February 14 of more than $600,000,000 in holdings of United States Government securities and of more than $500,000,000 in United States Government deposits, reflecting Treasury :financing. Loans on securities...and all other loans increased slightly and bankers' balances showed substantial growth. Short term money rates in the open market remained at low levels. On February 2, the Federal Reserve Bank of New York reduced its discount rate from ""2 per cent to 1½ per cent and during the succeeding two weeks reduction of ½percent was made at the Federal Reserve Banks of Cleveland, Boston, St. Louis, Dallas, Richmond, Kansas City, Atl anta, and San Francisco.
@FedFRASER