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THE MONTHLY REVIEW Of Agricultural, Industrial, Trade and Financial Conditions in the Tenth Federal Reurue District FEDERAL Vol. 20 RESERVE KANSAS C ITY, BANK Mo., B USI ESS activity in this District was well maintained during the initial month of the new year. Bank debits to individual accounts in twenty-nine leading cities, although slightly smaller than in December, exceeded the January, 1934, volume by 14.1 per cent. Retail trade, as reflected by department store sales, declined about as usual from December to January but was 7.6 per cent larger than a year ago and the best for the month since 1931. Wholesale distribution, which was non-seasonally larger in January than in the preceding month, fell 6.6 per cent below the corresponding month last year. Business mortality was lower than in any January since 1920, both in the number of failures and the amount of liabilities involved. Building activity improved and, other than residential construction, was above a year ago although remaining substantially below normal. In production lines, the output of flour, crude oil, bituminous coal, zinc ore, and lead ore was somewhat larger in January than in either the preceding month or the corresponding month last year, but cement production was smaller. Operations at meat packing establishments, reflecting the light supplies of live stock at public markets, declined rather sharply, contrary to seasonal tendencies, and were under January, 1934, the slaughter of hogs being conspicuously small. Marketings of all classes of grain were light. Agriculture, favored by mild, open weather which pe1·mitted the conservation of short feed supplies, was encouraged by rising prices for farm products. Cattle prices advanced sharply and hogs, sheep, cotton, butterfat, eggs, and poultry were higher. Grains, hay, and forage feeds, of which the District is short, closed steacy to slightly lower. The Department of Agriculture's index of prices for all farm commodity groups moved up from 101 to 107 per cent of the 1909 to 1914 average and the ratio of prices paid by farmers to prices received by them advanced 5 points to 85 per cent of pre-war. Member Bank Operations Deposits of fifty-two selected member banks in the Tenth Federal Reserve District increased between January 16 and February 13. Net demand deposits were up 1.2 per cent for the four weeks' period and on February 13 this year were 20.5 per cent larger than on February 14, 1934, and higher than for any weekly reporting date since ovember 12, 1930. Time deposits, which showed a gain of 1.4 per cent in four weeks, were only o.8 per cent above a year ago. Borrowings from these banks declined 1.2 per cent in four weeks, loans secured by stocks and bonds falling off 2.5 per cent, and "all other" loans showing a loss of o.8 per cent. Total loans and discounts are now 3.2 per cent less than on February 14, 1934, and the lowest in recent years. A shrinkage of 14.6 per cent in loans secured by stocks and bonds ac- OF MARCH I, KANSAS 1935 CITY No. 3 BUSI ESS I N THE TE TH FEDERAL RESERVE DISTRICT Percentages of Increase, or D ecrease (-), for J anuary 1935 over December 1934 and Janu ary 1934. January 1935 compared to Jan. 1934 Banking Dec. 1934 14.1 - 1.2 Paymen ts by check, 29 cities................................. . Even 8.9 Federal Reserve Bank clearings............................. . Business failures, number................ _ _ _ __ ~2.9 ~7.5 -41.1 -08.5 Business failures, liabilities .... - - - - 1.2 - 3.2 Loans, 52 member banks·--····································· I.I 10.3 Investments, 52 member banks ............................. . 1.2 20.5 Net demand deposits, 52 member banks ............. . o.8 Time deposits, 52 member bank_,__ _ _ __ 1.4 12.3 0.7 Savings deposits, 46 selected banks·-····················· 4.6 Savings accounts, 46 selected banks ...................... 0.5 Distribution - 6.6 2.8 Wholesalers' sales, 5 lines combined ..................... . 7.6 Retailers' sales, 32 department stores................... . -54-9 6.4 ~3.5 Lumber sales, 155 retail yards ..... - - - Life insurance, writte,1.-_ _ _ _ _ _ _ __ - 2,0 13·5 Construction 8.9 56.8 Building contracts awarded, valu~--Residential contracts awarded, value .................... 36.6 -57.9 17•5 Building permits in 17 cities, value....................... . 9.3 Production 2.6 7.8 Flour·-·····················································------2.7 4.4 Crude petroleum·-·······················-----25.0 8.4 Soft c o a ~ - - - -······················ · · - - - zinc ore (shipped) Tri-State district ... _ _ __ 31.2 - 8.6 Lead ore (shipped) Tri-State district................... . 173.5 7.3 -16.2 -35-1 Cement·-···············································---Grain receipts, 5 markets -28.6 -44.2 Whea'---- - - - - - · · · · · · · ································· -01.0 Corn .................................................. _ _ __ ~3-4 - 17.3 35.9 Oats·---···················------Live stock receipts, 6 markets I I.8 Cattle.................................................. _ _ __ 7.6 1.7 44·9 Calves·-············- - - - - - - - - - - Hogs ........................................ _ _ _ _ _ __ -57.1 -33.5 Sheep .............................................. _ _ _ __ -20.7 64.7 - 2.4 Horses and mules ..................................................... . 39.3 Meat packing, 6 markets - 6.o Cattle .................................................. _ _ _ __ -l4.3 -10.3 51.8 Calves·--··················································----58.2 Hogs ........................................................................... ~9.1 -31.0 Sheep ......................................................................... . 45.o counted for the decline in total loans for the year as "all other" loans increased 1.9 per cent. Total investment holdings of the fifty-two banks, which reached an all-time peak of $391,410,000 on December 19, 1934, have been reduced to $375,741,000 as of February 13, 1935. Present investment holdings, representing increases for the year of $9,419,000 in investments in United States Government securities and $25,622,000 in other bonds, stocks, and securities, are 10.3 per cent larger than at this time last year. This Copy Released For Publication In Morning Newspapers March 1. THE MONTHLY REVIEW A summary of the principal assets and liabilities of these weekly reporting member banks, as of the three reporting dates, indicate the changes in five weeks and fifty-two weeks: Feb. 13, 1935 Loans and investments-total.. Loans and discounts-total__ __ . Secured by stocks and bonds All other loans and discounts lnvestments-totaL .................. . U.S. securities ....................... . Other bonds, stks., and sec ... Reserve with F. R. bank._........ . Net demand deposits .....·-·········· Time deposits .... _ _ _ __ Government deposits, _ _ __ $568,580,000 192,839,000 52,022,000 140,817,000 375,74 1,000 241,230,000 134,511,000 106,494,000 486,682,000 164,659,000 21,682,000 Jan. 16, 1935 '$566,912,000 195,244,000 53,335,000 14-1,909,000 371,668,000 241,093,000 130,575,000 107,305,000 480,780,000 162,459,000 26,009,000 Feb. 14,1934 $539,849,ooo 199, 149,000 60,929,000 138,220,000 340,700,000 231,811,000 108,889,000 74,881,000 403,896,000 163,285,000 21,175,000 Federal Reserve Bank Operations Changes in the principal resource and liability items contained in the weekly condition statement of the Federal Reserve Bank of Kansas City and branches, during the four weeks' period ended February 13, were of minor importance. Holdings of bills rediscounted for member banks, which are at record low levels, declined slightly and holdings of bills purchased in the open market and of United States Government securities were unchanged. Industrial loans advanced t,201,505 to '1,635,349. Member banks' reserve deposits were up '/,417,785 and Federal reserve note circulation expanded f, I ,346, 500. Since February 14, 1934, member banks' reserve deposits have increased 37.2 per cent, Federal reserve note circulation 7.5 per cent, purchases of United States Government securities 10.1 per cent, total holdings of bills and securities 6.7 per cent, and total reserves 2 I .9 per cent. Principal resource and liability items of this bank and branches as shown by the weekly condition statements: Feb. 13, 1935 J an. 16, 1935 Feb. 14, 1934 Total reserves.............................. $207,535,798 '$208,369,001 $170,248,181 Bills discounted·--······················· 95,163 102,6o2 657,160 Bills purchased............................ 148,545 148,513 2,792,910 Industrial advances.................... 635,349 433,844 •··················· U. S. securities.... -...................... 91,844,250 91,844,250 83,444,200 Total bills and securities............ 92,723,307 92,529,209 86,894,270 Total resources...., _ _ _ _ _ 331,237,543 332,926,846 292,020,540 F. R. notes in circulation.·-······ 115,396,475 114,049,975 107,325,585 F. R. B. notes in cir.-net........ ·················-· ---9,433,850 Member banks' reserve deposits 177,720,883 177,303,098 129,549,933 The discount rate of the Federal Reserve Bank of Kansas City, on all classes of paper and maturities, remains unchanged at 2½ per cent. Savings Forty-six selected banks in leading cities of this District reported 402,398 savings accounts with deposits aggregating '/,II8,831,390 on February 1, 1935. These totals reflect increases since January I of 0.5 per cent in the number of depositors and 0.7 per cent in the amount of deposits and since February 1, 1934, of 4.6 per cent in depositors and 12.3 per cent in deposits. Commercial Failures January business insolvencies in the United States and the Tenth Federal Reserve District were smaller than in any January since 1920 both as to the number of failures and the amount of liabilities involved. Failures throughout the nation were more numerous and in the District less numerous th an in December, and liabilities were smaller for both. Business failures in the Tenth District and the United States as reported by Dun and Bradstreet, Incorporated: TENTH DISTRICT January 1935--························ December 1934........................ January 193+--- - - Number Liabilities 37 $237,590 51 48 755,3 21 403,280 UNITED STATES umber 1,1 84 963 1,364 Liabilities $18,823,697 19,910,610 32,905,428 Bank Debits Debits by banks to individual accounts in twenty-six of the twenty-nine reporting cities of the District, for the four weeks' period ended January 30, were larger than in the like period last year. The increase for the twenty-nine cities averaged 14.1 per cent as against an increase of 12.5 per cent reported for 267 cities in the United States. Compared to the preceding four weeks ended January 2, the volume of check payments in the District declined I.2 per cent. PAYMENTS BY CHECK FouR WEEKS ENDED Jan.30,1935 Jan.31,1934 8,267,000 $ 7,118,000 Albuquerque, N. M.·--··············· $ 2,778,000 2,458,000 Atchison, Kans.·---····················· Bartlesville, Okla _ _ _ __ 20,009,000 21,420,000 3,164,000 4,496,ooo Casper, Wyo.·---························· Cheyenne, Wyo ........................... 4,541,000 5,671,000 10,143,000 Colorado Springs, Colo.·--········· 9,855,000 I I 5,623,000 Denver, Colo.................... -.. ••····95,988,000 6,344,000 7,165,000 Enid, Okla ............. ········-············ 2,119,000 1,954,000 Fremont, Nebr.·--······················· Grand Junction, Colo ................. 1,567,000 1,936,000 1,226,000 1,681,000 Guthrie, Okla .............................. . 11,106,000 Hutchinson, Kans ...................... . 7,079,000 Independence, Kans .................. . 2,039,000 5,049,000 Joplin, Mo.................................. . 6,982,000 6,351,000 11 ,397, 000 Kansas City, Kans .................... . 10,389,000 21 4,999,000 236,357,ooo Lansas City, Mo ........................ . Kawrence, Kans .......................... . 2,520,000 2,591,000 Lincoln, Nebr..- .......................... . 19,571,000 23,785,000 6,602,000 Muskogee, Okla ........................... 5,961,000 Oklahoma City, Okla................. 68,096,000 59,947,000 2,060,000 Okmulgee, Okla........................... 1,924,000 Omaha, Nebr.............................. . I I I ,6oo,ooo 98,732,000 Pittsburg, Kans. _ _ __ 3,230,000 3,o43,ooo 12,020,000 Pueblo, Colo..- ............................. 11,857,000 Salina, Kans ................................ . 6,129,000 6,798,000 23,955,000 St. Joseph, Mo.. _......................... 24,973,ooo 14,716,000 11,329,000 Topeka, Kans.·-··-······················· 88,86o,ooo 74,3 11 , 000 Tulsa, Okla.·--····························· Wichita, Kans ............................ . 29,o62,ooo 37,787,ooo Total 29 cities, _ _ __ Total United States................... . '$ 851,939,000 29,392,349,000 Per cent Change 16.1 13.0 7.1 42.1 24.9 - 2.8 20.5 12.9 8.4 23.5 37· 1 56.9 -59.6 9.9 9.7 9.9 - 2.7 21.5 10.8 13.6 7.1 13.0 6.1 1.4 10.9 4.2 2 9·9 19.6 30.0 $ 746,791,000 26,130,318,000 Reserve Bank Clearings Transit forces of this bank and branches handled a slightly smaller number of items for collection in January than in the preceding month but the dollar volume was virtually the _same. Collections, although showing a decrease of 9.6 per cent m the number of items handled, were 8.9 per cent larger than a year ago in amount. . Clearings through the Federal Reserve Bank of Kansas City and branches at Omaha, Denver, and Oklahoma City during the three months of comparison: January 1 9 3 5 · - · · - - - - - - - - - December 1934.. _ _ _ _ _ _ _ _ __ January 1934·-·····--------- ITEMS AMOUNT 5,278,414 5,494,616 5,841,067 $799, I 76,000 799,o95,ooo 733,545,000 Trade Tenth District wholesale trade improved and retail trade declined seasonally in January, and sales of the former were below and of the latter above January a year ago. The dollar volume of sales of five representative wholesale lines combined, dry goods, groceries, hardware, furniture, . and drugs, as reported to this bank were '.2. 8 per cent larger m J~nuary, 1935, than in December but 6.6 per cent smaller than m J~nuary, 1934. All lines but furniture and hardware reported mcreased sales for the month with groceries the only line to report a slight improvement over January last year. Inventories of dry goods, hardware, and drugs were enlarged during the month. THE MONTHLY REVIEW 3 RETAIL TRADE AT 32 DEPARTMENT STORES IN THE TENTH FEDERAL RESERVE DISTRICT SALES STOCKS (RETAIL) AccoUNTS RECEIVABLE AMOUNTS COLLECTED Stores Jan. 1935 Jan. 31, 1935 STOCK. TURNOVER Jan. 31, 1935 Jan. 1935 compared to compared to compared to January compared to Reporting Dec. 1934 Jan. 1934 Jan. 1934 Dec. 31, 1934 Jan. 31, 1934 1935 1934 Dec. 31, 1934 Jan. 31, 1934 Kansas City..................... . 4 11.4 5.1 - 12.3 .24 .18 -21.2 6.1 28.5 11.6 Denver............ _ _ _ _ 4 13.5 2.8 4.9 .28 .25 - 16.5 11.5 5.9 14.3 27-9 Oklahoma City.................. 3 3.4 - 3.1 7.9 .33 .33 - 3.9 10.6 17.3 Tulsa.................................. 3 33.9 18.0 - 0.4 - 7.0 - 2.8 .32 .33 -27.4 7.4 Wichita........ .. - - - - 3 17.6 - 7.5 10.0 .25 .23 -16.3 12.6 30.6 24.4 Other cities........................ I 5 14.0 10.6 o.6 - 8.3 3.0 .22 .22 -15.3 2.0 TotaL __ ····························· 32 7.6 - I.I o.8 .26 .23 NOTE: Percentage of collections in January on open accounts December 31, all stores reporting 46.3. Month-end stocks of dry goods, groceries, and drugs were somewhat larger on January 31 this year than on the like date last year. Sales of thirty-two department stores, located in Tenth District cities, were 7.6 per cent higher in dollar volume for January, 1935, than for January, 1934, and the largest for the month since 1931. January sales decreased 54.9 per cent from December, or about the usual seasonal amount. Stocks of merchandise on hand January 3 I were slightly smaller than one month or one year earlier, with the index the lowest for the season in many years. Collections on open accounts for the month averaged 46.3 per cent of amou nts receivable at the close of December as compared to collection percentages of 47.6 in December and 43.7 per cent in J anuary last year. Collections on installment accounts averaged 15.2 per cent in January, 16.2 per cent in December, and I 5.5 per cent in January, 1934. Lumber RETAIL: Reports covering 155 retail lumber yards, located in cities and towns of the Tenth District, reflect increases for January over December of 6.4 per cent in sales of lumber in board feet and of 13 per cent in the dollar volume of sales of all materials. Lumber sales dropped off sharply as compared to January, 1934, declining 23. 5 per cent, but gross sales of all materials were up 2.4 per cent. Lumber stocks were 0.7 per cent larger on January 31 than at the beginning of the year but 7.5 per cent smaller than on January 31, 1934. Collections improved in January, the percentage of 40.4 per cent of amounts outstanding at the close of the preceding month being the highest reported in a long time. This ratio compares with collection percentages of 35.5 in December and 33.8 in January, 1934. January retail lumber trade is herewith compared to that of December and January, 1934, in percentages of increase or decrease: January 1935 compared to December 1934 Janu ary 1934 Sales of lumber, board feet................................ 6.4 -23.5 Sales of all materials, dollars............................ 13.0 2.4 Stocks of lumber, board feet.__......................... 0.7 - 7.5 Outstandings, end of month.............................. - 3.8 - 12.4 Stores Reporting Dry goods .......... _........ 6 Groceries ...................... 5 8 Hardwar Furniture·-··················· 5 Drug 7 -16.0 7.8 18.1 Collections same month last year 43.7. Building Building act1v1ty in the Tenth District, as reflected by the number and value of permits issued in seventeen cities and as shown by the reports of the F. W. Dodge Corporation of construction contracts awarded throughout the District, was substantially greater in J anuary than in the preceding month and somewhat improved over January, 1934. Residential construction continues to lag, the F. W. Dodge Corporation reports showing the value of this class of building as 57.9 per cent less in J anuary this year than in January last year, whereas the total value of all construction contracts awarded in the District was 8.9 per cent greater. The value of construction contracts awarded in the District, as reported by the F. W. Dodge Corporation: RESIDENTIAL T enth D istrict United States January 1935.... 1, 520,425 $22,410,200 December 1934 380,998 14,550,500 J anuary 1934-_. 1,235,714 15,no,400 TOTAL Tenth District 'f,8,559,539 5,458,156 7,857,569 AWARDS United States '/, 99,773,900 92,723,700 187,463,700 A total of 800 permits was issued in the seventeen cities, largely for small amounts representing repairs and improvements and minor new construction projects. Estimated construction costs totaled '$911,232, which was 17.5 per cent above the expenditures estimated for December and 9.3 per cent above those of January last year. BUILDING PERMITS IN TENTH DISTRICT CITIES ESTIMATED CosT PERMITS 1935 1935 1934 1934 Albuquerque, N. M.... _............... 'f, 43, 247 'f, 8,567 28 56 Cheyenne, Wyo......... 20 14,862 7,362 15 21 8,980 Colorado Springs, Colo.·--········· 2,715 7 Denver, Colo ............................... 159 166 81,085 169,145 Joplin, Mo................................... 2,200 4,150 4 7 Kansas City, Kans ..................... II II 14,200 21,325 Kansas City, Mo......................... 261,000 66,300 130 II4 28,492 19,629 29 Lincoln, Nebr.·--························· 34 Oklahoma City, Okla ................. 86 1 63 94,3 5 357,000 Omaha, Nebr ............................... 29,725 156,070 19 37 26 16,873 42 6,759 Pueblo, Colo.·-····························· 2 8 2,000 5,510 Salina, Kans.·-····························· Shawnee, Okla............................. I I 10,788 4,225 15 12 St. Joseph, Mo ..-......................... 8 II,465 39,99° 16 16,320 24 T opeka, Kans.·--························· 4,375 Tulsa, Okla .. _............................... 46,765 133,577 49 54 Wichita, Kans ............................. 29,949 104 26,245 24 Total 17 cities, J anuary·--········· 800 612 WHOLESALE TRADE IN THE T ENTH FEDERAL R ESERVE DISTRICT SALES OUTSTA NDINGS AMOUNTS COLLECTED Jan. 1935 J an. 31, 1935 Jan. 1935 compared to compared to compared to Dec. 1934 Dec. 31, 1934 Jan. 31, 1934 Dec. 1934 Jan. 1934 J an. 1934 1 3·5 ·- 2.I - · 7.5 - 5.0 - 3,1-4 - 13.5 13-3 1.8 - 2.0 0.4 - 7.1 - 15.7 -16.3 - 0.1 -22.3 - 3.8 - 1.9 - 9.4 -11.7 - 8.5 - 4.1 4.4 -25.5 5.4 2.8 -6.o -12.8 1.8 - 6.4 3.5 '/,9n,323 $833,887 STOCKS Jan.31, 1935 compared to Dec. 31, 1934 Jan . 31,1934 4.2 12.7 - 18.6 3.5 3.2 -0.2 10.4 - 8.1 Even 11.5 THE MONTHLY REVIEW 4 Flour Milling Operating at 60.8 per cent of full-time capacity, or at a slightly higher rate than in either December or January last year, Tenth District mills produced 1,949,405 barrels of flour in January. Output, although a little short of normal for the season, was 7.8 per cent above the December volume and 2.6 per cent larger than in January, 1934. Demand was light the forepart of the month but improved greatly toward the close as bakers and jobbers became attracted by lower prices or were forced into the market by their immediate needs. Volume was made up largely of widely scattered sales of small lots for quick shipment but a few round and large lot orders were placed. Inquiry from all classes of trade and sections of the District was active throughout the month but actual buying did not follow, much of the hesitancy being attributed to uncertainty of the effects of a Supreme Court decision in the gold clause cases. Prices worked lower but, as clears were very weak and millfeeds much cheaper, reductions did not follow the full decline in wheat. Export trade improved with lower prices. Unfilled orders on millers' books are reported extremely low at present. Flour production, for the principal centers of the District, as estimated from the weekly reports of the southwestern mills to the Northwestern Miller: Atchison .........................................·-········ Kansas City... _........................................ . Omaha...................................................... Salina ....................................................... . Wichit....__ _ _ _ _ __ Outside·-···························---- Jan. 1935 Barrels l 12,319 519,437 10 5,387 158,397 161,332 Dec. 1934 Barrels 103,944 457,750 103,770 137,49° 173,474 831,923 89 2 ,533 Jan. 1934 Barrels 126,048 523,4 17 10 5,644 152,224 168,034 825,443 Tota~- - - - - - · ························ 1,949,405 1,808,351 1,900,810 *United States·--····································· 5,271,927 4,945,331 5,649,844 *Represents about 60 per cent of the total output in the United States. Grain Marketing Short and diminishing supplies of all grains were reflected by January receipts at the five principal markets of the District. These markets received only about one-fourth the normal amount of wheat and corn, half as much oats, and less than IO per cent of the usual volume of rye, barley, and kafir in January. , Receipts of wheat and barley at these markets were the smallest for any month in sixteen years of record. Marketings of rye and kafu were the lightest for any January of record as were also those of corn, January, 1932, excepted, and oats, January, 1934, excepted. Most of the wheat and corn received was under contract on arrival, the latter coming from Iowa. Supplies fell short of requirements and elevator stocks were again reduced sharply. Stocks of wheat in interior mills, country elevators, and warehouses in the United States on January 1, 1935, were estimated by the Bureau of Agricultural Economics at 93,485,000 bushels; on July 1, 1934, they were 51,060,000 bushels; April 1, 1934, 83,588,000 bushels; and on April 1, 1933, 95,9II,ooo bushels. Receipts of six classes of grain at the five markets are shown m the following table: Wheat Corn Bushels Bushels 604,800 1,250 788,800 1,1 82,000 101,214 281,559 216,000 374,400 9,100 447,000 Oats Bushels 1,500 148,000 94,000 388,000 28,500 Rye Bushels Barley Bushels 4,5 00 1,400 3,200 1,600 January 1935·--· 2,316,214 1,689,909 December 1934.. 3,244,303 2,205,150 January 1934·-- · 4,154,600 4,337,700 660,000 798,500 485,5 00 5,9 00 4,5 00 125,000 Hutchinson ........ Kansas City·--··· Omaha ................ St. Joseph·---····· Wichita·--··········· Kafir Bushels 9,100 37,800 3,900 4,800 33,600 55,05° 50,800 65,300 198,300 Notwithstanding light receipts, prices receded, wheat and corn closing off 4,½, oats 2,½, rye 5, and barley 4 cents per bushel. Prices were affected somewhat by importations. Cash grain prices at Kansas City on the dates indicated: No. No. No. No. No. No. Feb. 14 Jan.31 Dec. 31 Feb. 14 Jan.31 Dec. 30 1935 1935 1934 1934 1934 1933 l dark wheat, bu ....... '/, .98 1,1.01¼ $ .84.½ t, .86.½ '/, .So '/, .97 2 mixed corn, bu ....... .91.½ .90¼ .44¼ .44.½ .43.½ .95 2 white oats, bu ......... .59.½ .36.½ .36¼ .57 .59½ .37¾ 2 rye, bu ..................... .79 .82 .60 .87 .63½ .55 .86 .90 .44 .45½ .43 2 barley, bu.·-··-········· .89 2 kafir, cwt ................. 2.II 2.06 2.03 .73 .77 .75 Petroleum Gross production of crude oil in this District during January, as estimated from the weekly reports of the American Petroleum Institute, totaled 21,861,000 barrels, or 580,000 and 921,000 barrels, respectively, more than officially estimated by the Bureau of Mines for December and J anuary, 1934. January production averaged 706,000 barrels per day, or 9,400 barrels below Federal allowables put in effect December 17. Federal allowables, which have been increased steadily in recent months, were again advanced as of February 1, the District quota being stepped up from 715,400 barrels per day to 724,100 barrels and the national quota from a daily average of 2,460,300 barrels to 2,526,100 barrels. Gross production of crude oil in the United States and the five oil producing states of the Tenth District: Oklahom -------------------Kansas .......................................... Wyoming...................................... Colorado. __··············· New Mexico .................................. *Jan. 1935 Barrels 14,892,000 4,328,000 1,050,000 II4,ooo 1,477,000 Dec. 1934 Barrels 14,703,000 1,071,000 96,000 1,478,000 Jan. 1934 Barrels 15,218,000 3,407,000 909,000 87,000 1,319,000 Total five states.......................... Total United States.................... 21,861,000 77,466,000 21,281,000 75,010,000 20,940,000 71,976,000 3,933,000 Mid-continent crude oil prices continue unchanged at schedules ranging from 76 cents per barrel for oil testing below 25 degrees gravity to $1.08 per barrel for that testing 40 degrees and over. In the market for refined products, gasoline was weak throughout January but most other items were firm. Cement The output of finished Portland cement at Tenth District mills during January, as reported by the United States Bureau of Mines, was seasonally less than in December and, excluding J anuary, 1933, smaller than in any like month since 1926, declining 16.2 per cent as compared to January, 1934. Shipments, which fell short of production, increased for the month but declined for the year and month-end stocks were the highest since January 31, 1932. Cement production in the District and the United States, as reported by the Bureau of Mines, in thousands of barrels: TENTH DISTRICT Production Shipments Stocks January 1935._. 408 387 2,454 December 1934 629 355 2,434 2,101 January 1934···· 487 434 UNITED STATES Production Shipments Stocks 3,202 2,846 21,8I6 4,447 3,104 21,460 3,779 3,778 19,547 Zinc and Lead Shipments of zinc and lead concentrates by Tri-State mines and tailing mills during the first five weeks of 1935 were the largest for the period in three years, deliveries of zinc ore being 8,009 tons and of lead ore 3,244 tons above a year ago. Zinc ore production exceeded shipments although buyers purchased all concentrates available at present prices. Lead ore shipments included a large portion of surplus stocks, accumulated the past year by one company, and were above production. 5 THE MONTHLY REVIEW Mines were inactive during the holidays, and a majority were closed down by cold weather late in January. The tonnage and value of zinc and lead ore shipments from mines in Oklahoma, Kansas, and Missouri: Oklahoma·--····································· Kansas.............................................. Missouri............................................ Zrnc ORE Tons Value 23,556 $6 I 2,456 8,770 228,020 I ,323 34,398 5 Weeks ended Feb. 2, 1935........ 5 Weeks ended Dec. 29, 1934........ 5 Weeks ended Feb. 3, 1934........ 33,649 36,827 25,640 L EA D O RE Tons Value 2,303 $ 82,908 2,722 97,992 89 3,204 $874,874 941,382 659, 299 i 184,104 161,386 80,927 Bituminous Coal The weekly coal reports of the United States Bureau of Mines, Department of the Interior, indicate the production of bituminous coal in each of the six coal producing states of the Tenth District was larger in January than in the preceding month, the combined output totaling 2,260,000 tons, a gain of 176,CXXJ tons over December. Production was also larger than a year ago in all states except New Mexico, the increase for the District amounting to 452,000 tons, or 25 per cent. Estimates of tonn age mined in the six states and the United States, during the three months of comparison, follow: Colorado. __ ··································· Kansas and Missouri ................. . New Mexico... - ............................. Oklahoma·--································· Wyon1ing..................................... . *Jan. 1935 Ton !> 699,000 712,000 118,000 234,000 497,000 *Dec. I 934 Tons 649,000 645,000 110,000 207,0001 473,000 J an. 1934 Tons 536,000 605,000 130,000 161,000 376,000 Total six states............................ 2,260,000 2,084,000 1,808,000 Total United States.................... 35,932,000 31,386,000 32,916,000 *Estimated from the weekly reports of the United St:ltes Bureau of Mines. Agriculture Southern and eastern parts of the District received norm al or above amounts of moisture during January, but the western third of the winter wheat belt received very little or no precipitation and the wheat crop in that area is threatened with extensive injury unless the surface and sub-soil moisture deficiency is relieved soon. Prospects continue promising in south central and eastern areas, although some damage from heaving and freezing is reported. Wheat in eastern Kansas and some sections of central Nebraska is the best in several years. Rains have relieved the drouth in eastern and central Oklahoma but the panhandle area has had no moisture of consequence. Some barley has been winter killed. The preparation of seed beds for spring crops has made very little progress to date, fields in some areas being too wet and in others too dry for plowing. Available supplies of adaptable seeds are short, the crop of some kinds being the smallest of record, notably grain ~orghums and grasses. Alfalfa, Korean lespedeza, and blue grass seed is, due in part to Government purchases last summer, in about normal supply clespite the reduced crop. The 1934 production of soybeans and cowpeas was above the five-year average. Demand for western Nebraska seed potatoes is extraordinarily heavy this year and the movement of the short crop is now under way and shipments are expected to be considerably below the 1934 total. Prices of seeds on the whole are about double what they were at this time last year. Prices of all farm commodities, except potatoes and wool, are higher than a year ago, corn, oats, grain sorghums, cottonseed, hay, pork, beef, butterfat, eggs, and seed crops making outstanding advances. Some items are on a pre-war p arity basis but the purchasing power of all commodities is still 15 per cent below the 1909-1914 average. Government rental and benefit p ayments through the Agricultural Adjustment Administration, to signers of cotton, tobacco, wheat, and corn-hog adjustment contracts in the seven states of the District, amounted to $10,345,354 in December. Total payments in the seven states under these contracts h ad amounted to $127,489,541 through December 31. Sugar beet farmers in Colorado, Wyoming, Nebraska, and Kansas are receiving their first checks under the sugar adjustment act. 1935 corn-hog agreements are now being signed. The minimum corn acreage reduction requirement is 10 per cent of the 1932-1933 base acreage, with an elective maximum reduction of 30 per cent. Owing to the feed emergency, occasioned by the drouth, land held out of corn production may be planted without limitation to any other crop than corn. The sign-up of sugar beet production adjustment contracts closed February 9 in most states including those of this District. Iineteen states are participating in this program. Cold Storage H oldings Declines during January in United States cold storage holdings of all commodities were reported by the Bureau of Agricultural Economics, United States Department of Agriculture. Net withdrawals of pork, lard, and miscellaneo us meats for the month were contrary to seasonal tendencies and the outmovement of all other commodities was in excess of normal. February I holdings of pork were about normal for the season but inventories of all other meats, lard, and cheese were substantially above, and of butter and eggs below, the five-year average for the date. United States cold storage holdings: *Feb. 1 J an. 1 Feb. 1 Feb. 1 1935 1935 1934 5-Yr.Av. Beef, lbs .._............................................. 127, 198 140,940 72,948 67,040 Pork, lbs............................................... 670,856 687,563 730,404 678,602 Lamb and mutton, lbs ...... -................. 3,809 4,560 4,183 3,381 P ou ltry, lbs........................................... 122,265 132,001 120,177 115,88 5 **T urkeys, lbs......................................... 23,5 13 18,652 19,941 T3,98 1 74,162 Miscellaneous meats, lbs.·--··············· 109,625 126,033 71,359 Lard, lbs. .............................................. 112,711 118,107 168,756 90,964 Eggs, cases............................................ 53 648 50 33 2 Eggs, frozen (case equivalen t).......... 1,506 1,854 1,426 1,649 44,671 Butter, creamery, lbs...•··-··················· 18,984 47,175 75,995 Cheese, all varieties, lbs. .................... 81,246 102,197 78,789 72,161 *Subject to revision. **Included in Poultry. (ooo omitted). NOTE : Meats held for the account of the Federal Emergency Relief Administration are not included in the above. Meat Packing Operations at meat packing establishments, as measured by the num ber of animals purchased by packers for slaughter at the six principal market centers of the District, including hogs shipped direct to packers' y ards, were less active in January this year than in either December or January last year. Fewer cattle were slaughtered during the month than in January, 1934, or in any month since last April. Calf slaughter, although 51.8 per cent larger than a year ago and 62 per cent above normal, was the lightest since June. Reflecting light receipts, swine numbers · declined 29.1 per cent as compared to December, 58.2 per cent as compared to January last year, and 57 per cent as compared to the ten-year average. Purchases were, with one exception, September, 1920, the smallest for any month in sixteen years of record. Less than the usual number of sheep and lambs were also slaughtered during the month, the total being 28 per cent below normal and the smallest for any January of record. The Bureau of Agricultural Economics reported the Federally inspected slaughter of hogs for the United States in January as the smallest for the month since 1911 and 43 per cent below a year ago. Cattle slaughter, which included Government 6 THE MONTHLY REVIEW purchases, was the smallest since June but not exceeded by any January since 1919. Calf slaughter established a record for the month. Few, if any, Government sheep being included in the totals, the slaughter of sheep and lambs fell 4.4 per cent below the January, 1934, numbers. Federally inspected slaughter of live stock as reported by the Bureau of Agricultural Economics: Cattle Calves Hogs Sheep January 1935.................... 977,000 512,000 3,047,000 1,345,000 December 1934................ 1,188,000 494,000 4,196,000 1,314,000 January 1934·-················· 831,000 471,000 5,391,000 1,407,000 NOTE: The slaughter of cattle, calves, and sheep for Government account is included in the January, 1935, and December, 1934, totals. Live Stock MARKETINGS: Improved prices and short feed supplies resulted in a larger number of cattle and calves arriving at the six principal market centers of the Tenth District in J anuary than in any like month since 1928. Hogs were scarce and higher and receipts were the smallest for any month in seventeen years of record. Marketings of sheep and lambs, although considerably heavier than in the preceding month, were 20.7 per cent less than in J anuary, 1934, and the smallest for the month of record. Compared to the ten-year average January supply, receipts of cattle and calves increased 6 and 44 per cent, respectively, and those of hogs and sheep and lambs declined 59 per cent and 21 per cent. Horses and mules were in normal supply, offerings totaling 15,453 head in J anu ary against II,096 head in December and 15,836 head in January, 1 934All live stock values are well above a year ago, prices of cattle and hogs making notable advances in recent weeks. The January advance in cattle prices exceeded expectations, being one of the greatest peace-time gains for one month in the history of the live stock industry. All classes ruled $1.25 to $2 or more per hundredweight higher at the close, beef steers showing an extreme advance of $3.25. The month's top for fat steers at Kansas City was $13.00 against '$7.00 last year. Moderate gains continued into February when a new top of $13.25 was reached. Present levels for finished steers are higher than at any time since December, 1930, cows and stock cattle since June, 193 I, and feeders and calves since April, 1931. Hogs were 50 cents to $1.00 per hundredweight higher, reaching $8.30 on January 9 which price compares with last year's January top of '$3 .50. On February 26 a small lot sold at $9.10, a new high since ovember, 1930, at Kansas City. Fed and native lamb prices were steady to strong throughout the month and wethers and fat ewes closed about $1 per hundredweight higher and feeder lambs were up $1.25 to $1.50. Top quality lambs brnught '$9.35, or 25 cents more than last year. Lambs from Kansas wheat pastures made their first general appearance and, being in excellent shape, commanded top or near top prices. Prices of both sheep and lambs weakened somewhat the forepart of February. Kansas City .............. Omaha ........................ St. Joseph .................. Denver........................ Oklahoma .................. Wichita ...................... Cattle 144,583 109,710 34,284 ,12,518 56,53o ,18,517 Improvement in live stock feeding ratios widened the demand for stocker and feeder live stock. Purchases of stocker and feeder cattle at four Tenth District markets during January were 36.1 per cent larger than a year ago and the largest for the month since 1931, and calf purchases were above normal. Feeder pig regulations under the 1935 corn-hog contracts have been modified and contract signers are now permitted to buy unlimited numbers for feeding purposes from non-signers, whereas before they were restricted to signers. RANGES AND PASTURES: Generally mild, open weather during January and the first three weeks of February permitted the full use of ranges and pastures, thereby conserving the scant supplies of feed. Live stock on western ranges are in poor to fair condition. Feed supplies are the shortest of record and supplemental feeding of shipped-in feeds has been heavy. In the drier areas live stock has shrunken badly and, although death losses have not been unusual so far, they are expected to be heavy if the weather becomes severe. Wheat and rye pastures in eastern and south central sections of the District furnished some pasture but many fields have recently been too wet for live stock. Roughage is reported as becoming increasingly scarce and feed grains exceedingly so. Spring lam b and calf crop prospects are fair to poor. Heavy rains h ave assured good pastures and sufficient supplies of water· in the Flint Hills section of Kansas and the Osage region of Oklahoma. Leasing, which started early in January, has moved forward rapidly and most of the larger pastures are now under contract at higher rentals than a year ago. Government purchasing of drouth relief cattle was discontinued the forepart of February. LIVE STOCK ON FARMS JANUARY 1: Liquidations of cattle and calves and sheep and lambs the past year, and swine the past two years, and steady decreases in the numbers of horses and colts and mules and mule colts since 1920, have reduced total live stock numbers on farms in this District and the United States as of J anuary 1, 1935, to the lowest point in many years. Reductions in numbers in the seven states of the District the past year were in percentages as follows: all cattle and calves, 19.2; milk cows, 9.9; swine, including pigs, 47.2; sheep and lambs, 6.9; horses and colts, 1.2; and mules and mule colts, 7.7 per cent. Decreases for the United States of 11 per cent in cattle numbers and 35 per cent in swine numbers were much the largest ever reported for any one year. Notwithstanding the decreases in numbers, the estimated value of each species of live stock on farms in the United States on January 1 was larger than a year ago, the total value of all live stock being placed at $3,103,136,000, an increase of $225,292,000 or about 8 per cent over the value on January 1, 1934. However, reductions of cattle, hogs, and sheep being proportionately heavier in this District than in the United States as a whole, the January I inventory value for the District of these species showed losses as compared to January 1, I 934. JANUARY MOVEMENT OF LIVE STOCK IN THE TENTH DISTRICT RECEIPTS STOCKERS AND FEEDERS PURCHASED FOR SLAUGHTER Calves Hogs Sheep Cattle Calves Sheep Cattle Sheep Hogs Calves Hogs 126,409 29,158 *i49,9o7 41,468 3,200 3,140 13,561 27,240 *140,963 73,636 95,7 26 13,899 1,974 17,260 129,780 115,163 1,077 68,853 78,54o 19,378 11,925 9 1,956 25, 195 66,858 2,150 71,665 158 68,645 60,655 7,747 3,774 4,759 7,3°7 1 181 1 12,872 56,289 36,272 I 5,446 12,432 117,465 9, 43 4,373 3,935 3,543 8,018 11,464 10,048 26,851 30,968 7,982 3 1,978 20,028 5,262 6,442 15,966 10,963 18,552 9,969 January 1935·---······· 416,142 77,853 458,637 451,909 December 1934.......... 372,368 76,583 689,994 274,411 January I934--- -··-···· 386,790 53,715 1,069,504 569,829 *Includes 85,573 hogs shipped direct to packers· yards. 81,051 39,018 9,7°5 5,4 1 7 59,554 14,721 6,548 11,156 6,862 48,530 32,783 60,884 222,063 259,241 236,215 266,738 63, 2 95 7o,535 383,239 54o,9o7 184,015 41,706 916,336 386,673 THE MONTHLY REVIEW 7 LIVE STOCK ON FARMS JANUARY 1 As Estimated by the United States Department of Agriculture (In Thousands, ooo Omitted) ALL CATTLE AND CALVES Number of Head Value 1934 1 933 1932 1931 r930 *1935 1934 1933 1 ,557 'f, 23,614 $ 24,795 'f, 25,007 'f, 1,526 1,713 1,541 1,454 3,671 3,141 51,885 3,298 2,991 3,463 59,4 13 55,7 1 5 2,735 2,660 2,770 2,542 2,500 50,411 41,351 4 2,9 2 5 3,016 3,326 3,138 3,167 64,5o7 62,493 5o,495 3,59 2 1,445 1,2 80 1,100 1,100 19,36o 16,552 1,144 20,544 2,280 2,010 27,969 2,462 2,131 1,915 28,505 32,258 13,7 23 1,023 18,486 863 830 16,572 93° 79° Colorado ............ Kansas ................ Missouri ............ . Nebraska........... New Mexico .... .. Oklahoma .......... Wyoming............ *1935 1,439 3,084 2,271 2,694 1,050 2,142 800 Seven states.. ___ . United States .... 13,480 60,667 16,676 68,290 15,57 1 65,704 14,760 62,656 Colorado ............ Kansas ................ Missouri·-··········· Nebraska ............ New Mexico ...... Oklahoma .......... Wyoming............ "' 1935 264 855 922 712 65 733 64 1934 290 9 29 1,072 772 75 797 75 1933 274 868 1,051 735 72 766 73 1932 266 843 1,030 700 70 716 72 Seven states·-··-· United States .... 3,615 25,100 4,010 26,185 3,839 25,285 3,697 24,475 3,563 23,576 Colorado ............ Kansas ................ Missouri.-··········· Nebraska............ New Mexico ...... Oklahoma.......... Wyoming............ *1935 273 1,410 2,303 2,169 34 645 57 1934 44o 2,6JI 4-,113 4,7 15 58 1,024 87 1933 536 3,264 4,674 4,534 78 1,506 98 1932 624 3, 109 4,100 5,334 74 1,205 123 1931 520 2,487 3,488 4,820 62 92 7 137 1930 495 2,826 3,75° 5,010 65 1,053 130 Seven states ... _... United States .... 6,891 37,007 13,048 57, 177 14,690 61,598 l4,569 58,988 12,441 54,399 13,3 29 55,3° 1 * 1 935 2,736 722 1,247 74o 2,460 354 3,579 1934 3,028 692 1,189 997 2,757 183 3,873 1933 3,o93 682 1,200 1,057 2,820 188 3,893 1932 3,39 1 777 1,225 1,036 3,002 185 3,97 2 1931 3,35 1 669 1,204 960 2,780 183 3,894 Seven states·-··-· United States .... II,838 49,766 12,719 52,212 12 ,933 51,762 13,588 53, 1 55 13,041 52 ,599 Colorado ............ Kansas ................ Missouri.-........... Nebraska ............ New Mexico ...... Oklahoma .......... Wyoming............ *1935 312 638 55 1 645 108 435 142 1934 312 644 55 1 665 II4 431 149 1933 318 651 55 1 676 121 439 157 1932 324 664 574 697 130 453 162 Seven states·--··· United States .... 2,831 II,827 2,866 II,963 2,913 12,203 3,004 12,621 Colorado ............ Kansas ................ Missouri .............. Nebraska ............ New Mexico ...... Oklahoma .......... Wyorr.inrr............ *1935 22 II0 2 55 73 18 238 4 1934 24 127 274 81 19 251 4 1933 26 146 288 88 21 270 4 1932 28 150 29 1 91 22 287 4 Seven states,....... 720 United States .... 4,795 *Subject to revision. 700 4,9 25 843 5,036 873 5,120 14,33 1 6o,987 13,766 59,730 '$ 226,125 1,278,327 '/, 253,027 1,247,491 MILK Cows AND HEIFERS KEPT FoR MILK 1930 1931 *1935 259 'f, 260 6,600 'f, 8II 780 20,520 20,284 989 93° 680 680 19,224 1,755 69 69 1 68 2 650 13,194 72 72 1,792 3,44° :22,910 '$ 1930 1932 1931 34,374 $ 58,250 '/, 73,985 I 50,296 72,568 104,909 133,77 2 88,207 63,229 123,513 165,815 75,93 2 24,749 33,330 44,343 51,054 78,489 39,977 2I,II5 42,875 33,449 $ 267,423 '$ 331,944 '$ 492,712 'f, 689,575 1,310,164 1934 6,,180 '$ 20,438 20,368 20,072 1,875 12,752 2,025 1,667,843 1933 6,850 '$ 21,700 24, 173 19,845 1,800 15,320 2,263 2,396,73 1 1932 9,576 $ 27,819 30,900 25,200 2,590 19,33 2 2,808 3,386,010 1931 14,560 'I, 38,928 43,516 38,080 3,45° 24,552 4,680 83,369 'f, 83,910 $ 9 1,95 1 '/, II8,225 '$ 167,766 968,460 r,346,n9 76 2,543 7o9,9o9 739,7 1 9 1930 18,648 57,720 65,100 53,720 4,485 38,35° 6,048 1, 244,07 1 I,897,01 I SWINE, INCLUDING Prns Colorado.: .......... Kansas ................ Missouri.............. Nebraska............ New Mexico ...... Oklahoma .......... Wyoming............ *1935 $ 'f, SHEEP AND LAMBS 1930 '/, 3,75° 659 1,180 1,208 2,527 185 3,54° 13,049 51,383 'I, 1,425 $ 7,807 10,653 13,345 162 2,453 263 36,108 237,258 $ *1935 12,254 '/, 3,044 5,44o 3,170 9,356 1,203 16,619 3,258 13,684 '/, 170,581 'f, 901,038 MULES AND MULE COLTS 1931 1930 *1935 28 30 $ 1,365 'f, 1 55 160 8,576 297 22,796 300 5,816 95 99 1,184 23 24 302 31 8 18,492 250 4 4 9o4 5,226 935 5,366 '!, 49,210 236,862 '/, 1934 12,818 '/, 2,720 4,561 4,183 8,803 59 2 15,97 2 1933 1,644 '/, 12,494 17,829 19,436 302 4,536 336 1932 3,287 'I, 16,877 23, 1 55 32,130 422 5,97° 662 1931 5,77 2 1, 26,II4 31,043 64,588 595 7,5°9 1,480 56,577 'f, 82,503 1, 137,101 618,077 259,827 361,485 1933 9,108 '/, 1,860 3,260 2,924 6,441 5°3 12,414 1932 10,656 'f, 2,396 3,99 1 3,124 6,813 549 14,303 1934 12,680 '$ 34,053 32,401 38,312 4,434 22,688 5,356 1933 9,902 '/, 26,402 24,608 31,242 3,073 14,362 4,III 1932 II,008 1, 24,44 2 22,922 3o,944 2,980 13,561 4,256 1930 5,943 36,156 42,701 78,260 704 9,9°5 1,566 $ 175,235 744,3o8 1931 18,766 'f, 3,010 6,020 4,512 13,622 842 22,585 51,086 '/, 49,649 'f, 36,510 'f, 41,832 'I, 69,357 197,74° 281,806 214,613 180,780 150,097 HoRsEs AND CoLTS 1931 1930 *1935 $ 15,872 '$ 338 33 1 728 699 39,370 610 38,356 59 2 1 7 9 4 1,559 757 135 142 4,324 482 24,804 5°7 171 6,296 176 3,129 13,169 1934 1,489 1, 9,337 14,205 2.o,955 2II 2,713 300 1930 33,843 5,5 1 5 10,726 9,864 20,542 1,650 32,466 f, 114,606 459, 20 8 1931 13,57 1 '/, 26,562 26,640 37,388 3,780 I 5,906 5,814 1930 I 5,023 35,075 33,200 45,9 23 4,720 19,628 6,013 149,9 24 'f, u3,700 '/, I I0,l 13 'f, 129,661 '/, 159,582 673,649 655,9n 955,964 793, 1 55 795,7 25 1934 1,218 '/, 8,808 20,882 5,840 1,022 17,613 216 58,479 $ 55,599 47o,9oo 401,596 1, 1933 1,019 '/, 7,631 17,256 4,93 2 772 12,276 164 1932 1,179 'I, 7,865 16,037 5,121 855 12,241 180 44,050 '$ 43,478 303,066 310,058 $ 1931 1,456 '/, 8,990 19,008 5,890 897 14, 194 192 50,627 361,562 $ 1930 1,721 10,579 22,824 7,869 1,171 18,788 235 63,187 449,480 8 THE MONTHLY REVIEW Business Conditions in the United States By the Federal Reserve Board oc• 140 N:IICUfT C.EHT 140 INDUSTRIAL PRODUCTION 130 120 I 30 ,, A ~ 120 \ 110 100 \ 90 110 " '\V\ .I\ \.. I \ \ 1"'1 80 70 60 I 00 90 I"\ 80 V 70 60 y 50 50 1929 1930 1931 1932 1933 1934 1935 Index of industrial production, adj usted for seasonal vari ation. (1923-1925 average=100.) Latest figure: January, 90. 60 f---------4-----+--~-V~~--+, 50 > - - - - t - - - + - - + - 4 - - - - 1 - - i - - + - - - + - - - + 50 40>--- - t - - - + - - + - - ~ ,-- - + - - - + - - - + ~ ~ 30 1929 1!,jJ0 1931 1932 1933 1934 1935 Indexes of factory employment and payrolls. without adjustment for seasonal variation. (1923-1925 average=100.) Latest figures January: employment, 78 .6; payrolls, 64.1. J.ndexes compi led by the United States Bureau of Labor Statistics. "3 PCACEN'T 120 r------,c-----.-WH-.0-L-ES_A_LEPRI _C_ES--r----r----'-•Ec,• °,"2 110 f----l------,f----------4-----+---+---+---l 110 IOO 90 80 70 60 60 I---+--- 50 +----; 50 40 l------,f----------4-C.....:.,.=-4-",....._----+--- + - - - - l 40 30 _ _._______._ 1929 1roo __,,__ 1S31 __.__ 1sJ2 __,__ 1933 __.__ 193-4 _, 30 19311 Indexes of the United States Bureau of Labor Statistics. (1926=100.) By months, 1929 to 1931; by weeks, 1932 to date. Latest figure, February 16: farm products, 72.9; foods, 83.1; other commodities, 77.7. IILL\OHSOf"O'JU.AflS 8H.J.JONSOfDOLL»tS 8 0 MEMBER BANK CREDIT 1932 1934 1935 Wednesday figures for reporting member banks in 91 leading cities. Latest figures are for February 13. Industrial output, which had shown a rapid growth in December, increased further in January. Activity in the building industry continued at a low level. Wholesale commodity prices advanced considerably during January and the first half of February, reflecting chiefly marked increases in the prices of live stock and live stock products. PRODUCTION AND EMPLOYMENT: Volume of industrial production, as measured by the Board's seasonally adjusted index, increased from 86 per cent of the 1923-25 average in December to 90 per cent in January. Activity in the steel and automobile industries continued to increase rapidly during January and the early part of February; in the middle of the month, however, steel production declined. Output of lumber increased in J anuary but was still at a low level. At cotton and woolen textile mills activity showed a considerable growth while in the meat packing industry output declined. Output of crude petroleum increased further in January and the first half of February. Factory employment and payrolls increased somewhat between the middle of December and the middle of January, although a decline is usual at this season. At automobile factories the volume of employment increased further by a large amount and there were substantial increases at steel mills, foundries, and woolen mills. Employment in the meat packing industry continued to decline and in January was at about the same level as a year ago. Among the non-manufacturing industries, the number employed at retail trade establishments and on construction projects showed declines of a seasonal nature. Value of construction contracts awarded in J anuary, as reported by the F. W. Dodge Corporation, was slightly larger than in December but considerably smaller than a year ago, when the volume of public projects was exceptionally large. The value of contracts awarded for residential building in the three months from November to January was about the same as in the corresponding periods of the two preceding years. DISTRIBUTIO.1. : Freight-carloadings showed a seasonal growth in January. At department stores the volume of business declined somewhat more than is usual after the Christmas holidays. COMMODITY PRICES: The general level of wholesale commodity prices, as measured by the index of the Bureau of Labor Statistics, advanced from 77.9 per cent of the 1926 average in the week ending January 5 to 79.4 per cent in the week ending February 16. During J anuary prices of cattle and beef showed substantial increases and in February the price of hogs advanced considerably. Prices of cotton, grains, and silk showed a decline in January and the first few days of February, followed by an advance in the middle of the month. BA IK CREDIT: During the five weeks ended February 20, member bank balances with the reserve banks increased ·by $260,000,000 and their excess reserves rose to about $2,300,000,000. The principal factors in the increase were an inflow of gold from abroad and disbursements by the Treasury of funds previously held as cash or on deposit with the Federal reserve banks. Net demand deposits of weekly reporting member banks in leading cities increased by more than $200,000,000 in the four weeks ended February 13. Total loans and investments of these banks showed no significant changes during the period. Slight declines occurred in loans on securities and in holdings of direct obligations of the United States Government, while other loans and other securities increased somewhat. Yields on United States Government securities declined slightly further and other open market money rates continued at a low level.
@FedFRASER