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0
THE MONTHLy BULLETIN°
Covering Conditions in the Tenth Federal Reserve District
FEDERAL RESERVE BANK OF KANSAS CITY
For the Information of Member Banks and Business lntere.i;ts of this District
ASA E. RAMSAY, Chairman Board Directors
C. K. BOARDMAN, Aasis'ant Federal Reserve Age11t
a11d Secretary
and Federal Reserve Agent
a------------------------------------------0
Vol. 5
KANSAS CITY, MISSOURI, MARCH 20, 1920
QUICKENING of industrial energy apparently has come with the ushering in of spring
somewhat in _advance of the cbeduled tim
for its arrival. It is evident from the reports to the Monthly Bulletin that the people
of this district have concluded that after all the
real solution of the abnormally high prices, industrial
unrest and other economic problems is in an increased
output of agricultural, mineral and manufactured
products and the betterment of facilities for their distribution.
While the various lines of trade are taking on something more than their usual spring-time activity in
consequence of heavier seasonal demands the farmers
-seriously handicapped by shortage of help-have
taken a fresh grip on the situation. By using the
help available they have, with the early start afforded,
prepared the soil for a larger acreage of spring planted
crops than would have been possible had the spring
been late in coming, thereby to some extent making
up for the r <luced acreage sown to wheat in the fall.
Increased productiveness is being undertaken with
some show of success in the oil fields and also in the
mining sections, as the reports indicate. Manufacturing in cities and towns is putting forth newly acquired
effort, though productivity is still below demand and
deliveries are far behind orders.
The railroads, returned by the Government to
their owners March 1, are expected to bring relief to
the crippled transportation system, but the period of
operation under corporation management has been too
short to determine what improvement ,if any, has been
made thus far.
The situation respecting the supply of labor is somewhat easier, though the larger program of industrial
activity for the season means plenty of work for all
hands.
A survey of the situation made by the Monthly
Bulletin points clearly to the fact that while there i~
an imperative need of larger production from the·
farms, ranges, mines and oil fields and factories, the
need of a big construction year is as urgent in the
Tenth Federal Reserve District as it is in any other
section of the United States. Nearly every community is sadly in need of dwelling houses and a
great cry is being made against poor and inadequate
housing conditions and high rents. The reports further indicate a need of more buildings for the accom-
A
No. 3
modation of business enterprises and f;ctories which
should now be rapidly expanding to meet the demands
on them for goods and products. Public improvements of all kinds, including extensions and betterments of transportation, are also demanding attention at this time, since longer neglect is sure to further restrict and hamper busines .
But to what extent this very essential construction
work is to proceed during the open season of the year
must depend upon the readiness with which such enterprises can be financed at this time when the money
market is hampered by demands for funds for nonessentials and for speculation. Also of importance in
the carrying out of a construction program of such
magnitude is tl1e necessity of a stabilization of prices
on materials of all kinds, as well as of wages to building trades employees, in order that prospective builders and contractors may have something of a definite
knowledge of construction costs. It is further apparent that an increased supply of materials, together
with an improvement in the methods of distribution,
is necessary to insure larger activities. The reports
indicate that production of materials is handicapped
by shortage of labor in many instances, while a vast
amount of work is already held back on account of
the unpreparedness of the railroads to make deliveries
of materials.
FINANCIAL
The statement of the Federal Reserve Bank of Kansas City and branches as of March 12, reflects the
heavy demand for funds for farm settlements which
in this agricultural district makes March an exceptional month in financial activities. Go1d reserves
were $82,713,229.39 as compared with $87,117,727.96
on March 5 and $86,887,212.66 on February 13. The
ratio of total reserves to net deposits liabilities and
Federal Reserve notes liabi1ities combined was 45%
against 45.6% one week previous and 47% one month
previous. Bills discounted which were secured by
United States Government war obligations totaled
$39,778,573.08 against $40,211,086.08 on March 5 and
$32,635,862.83 on February 13. Other bills discounted
were $61,209,251.31, a decrease of $1,026,389.54 from
the total for March 5 but $6,881,455.49 more than the
total on February 13. Open market purchases or bills
were $4,376,009.01, which is $1,173,531.82 less than one
week previous and $7,475,003.32 less than a month
previous. Total gross deposits as of March 12 were
2
THE MONTHLY BULLETIN
$166,587,191.20 as compared with $184,364,863.86 on
March 5 and $169,896,963.35 on February 13. Federal
Reserve notes in actual circulation on March 12 were
$102,783,935, which compares with $103,189,550 reported one week previous and $100,539,195 one month
previous. As an indication of the extent ?f the transaction of the Federal Reserve Bank and its branches
the statement for the week ending March 12 shO\vs
clearings aggregating $301,105,709.31, with 1,043,184
as the total number of items handled in the one week.
The statement of March 14, 1919, showed clearings
for the week $174,052,910.09, and a total of 513,600
items were handled in that week.
Condition Member Banks.-Eighty-three elected
member banl-s in the Tenth Federal Reserve District
increased their loans $16,829,000 between February b
and March 5 this year, although the total of loans
secured by U. S. war obligation was only increased
to th amount of $726,000 in that period. At the same
time these eighty-three selected member banks reduced their holdings of U. S. ·ecuriti , $426,000. R "s rve balance· of the-;e banl s on Mar h 5th were incrcas ·d $514,000, whilct net <l man 1 deposits n whi h
reserve is computed total .d $481,019,000 on March 5
as compared with $469,811.000 011 February6. Time
<lepo its in that time al o i11crea~ed in the month ti.>
the amount of $3,594,000.
Clearings.-Peports of clearings for February at
twenty clearing houses of this district totaled $1,622,677,044, representing a decrease of 17.8o/o for the
short month as compared with January clearings, but
32.3% increase over clearings in February, 1919. A
noticeable feature of the reports is that while clearing at the larger market and jobbing center. reflected
a large increase over the corresponding month in 1919,
lhe clearings at the principal citie · in the mining and
oil districts also showed large increases for Februar)
over the clearing for that month la t year. In no city
of the district were the clearings for February below
those of February, 1919. An increa~e of 584.2% reported by the clearing hou e as ociation of Kan ·as
City, Kans., was due to a more complete organization
of state banks in the clearing house. Total clearings
for January and February aggregate $3,598,739,271 for
the twenty clearing houses, compared with $2,724,307,283 reported by eighteen clearing hou es for the first
t\.vo month of 1919.
The Demand for Money.-March 1 t settlements on
land contracts created an abnormal demand for funds
in cerlain section of this district during the early part
of March, and it i expected that seasonal require~
ment will cause continued heavy borrowing. The
demand has apparently not been materially affected
by the increa d rates although it is thought tl at
banks in this district are endeavoring to confine their
loans to essentials.
Offerings of acceptances have been limited and
whil some commercial paper is being purchased by
the banks in this district the volume is comparatively
small and the rates are strong.
Treasury Certificates.-While it is expected that income and profits taxes will be collected in the aggregate amount of 25 to 30 million dollars during the
month of March, Treasury Certificates of Indebtedne s held in this district in the aggregate amount of
approximately 33 million dollars mature March 15th;
hence it is not expected that any disturbance will be
caused by the tax payments.
Collections.-Very heavy sales by wholesalers and
jobbers late in February and in early March brought
the percentage of out tanding accounts up somewhat
as compared with a year ago; but payments a a whole
are better now than at any p riod of comparis n. Retailer with scarcely a single exception report collections good.
Failures.-'J h · low rec rd of th Tenth l◄ •<l ral H.t:
!:-'I rve District in commcr ial failures was maintained
in February. A ·cording to the reports of Duns Review the failures in this di. trict in February numb •red_ 29 and the liabilities w re $484,025. This compare-,
with the record of February, 1919, of 28 failure: ancl
$265,103 of liabilities.
Railroad Receipts.-Freight collections al Kansa~
City for February, 1920, were $4,298,497.84, a reported by the Railway Clearing Association. Compared w~th the freight receipts of February, 1919, there
was an increase of $366,992.07, or 9.3%.
Bank Clearings, Twenty Cities, February.
1920
1919
% :ai11
Kansas City, Mo ...... ~ 924,0...10,930 $ 692,935,214
3:to
Omaha, cb. . . . . . . . . 222,901,056
199,782,575
IJ.6
D nver, Colo. . . . . . . . . 136,359,289
93 1826 716
iu.:;
St. Joseph, Mo.. . . . . . .
71,545,481
68 1443'1208
.Uj
Wichita, Kans. . . . . . .
53,871,389
:36 864 1036
16.1
Tulsa, Okla. . . . . . . . . .
53,086,074
36°021 855
17.:J
O~lahoma City, Okla...
50,891,663
85:736:259
42.-+
Lmcoln, Nebr. . . . . . . .
21,860,030
15,608,742
40.0
Muskogee, Okla. . . . . .
17 429,304
11,109 636
56.8
Kansas City, Kans.. . . .
16:010,338
2,340:441
584.2
Topeka, Kans. . . . . . .
14,372,145
13,171,948
9.1
Joplin, Mo. . . . . . . • . . .
7,821,189
5,976,700
30.~)
Cheyenne, Wyo. . . . . . .
6,622,722
Okmulgee, Okla. . . . . .
5,287,268
Colo. Springs, Colo.. . .
4,832,409
2,980,611
62.1
Bartlesville, Okla. . . . .
4,408,080
3,175,764
38.9
Pueblo, Colo. . . . . . . . .
3 622,744
2,670,527
35.'l
Hastings, Nebr. . .
s:099,899
1,837,204
68.6
Fremont, Nebr. . .
2,885,430
2,253,032
28.1
Lawrence, Kans. .
1,728,704
1,450,014
19.2
February Total . . . ... $1,622,677,044 $1,226,184,512
January Total . . . : .. 1,976,062,227
1,498,122,771
Year to date .......... 3,598,739,271
2,724,307,283
32 3
31 9
32.1
Condition of Eighty-three Selected Member Banks, Tenth Federal Reserve District.
Mar. 5, 1920
Total U. S. Securities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .......... $ 53,243,000
Loans secured by U. . war obligations (LibPrty Bonds, Victory Notes,
Certificate of Indebt~dn<'S ·)..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,446,000
Loam; secured by 'tocks and Ilond other th n . '. S<.•cu1·ities . . . . . . . . 80,222,000
All other loans and inv,, tments ............................. . ........ 18'1,894,000
Reserve Balance with F d ral Res rvc Bank............... . . . . . . . . . . . 55,887,000
Net demand deposit· on which r serve is computC'd........ . . . . . . . . . . . 81,019,000
Time Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95,158,000
*Seventy-six Banks Reporting.
Feb. 6, 1920
$ 53,669,000
*Mar. 7, 1919
$ 88,559,000
19,720,000
76,122,000
172, 91,000
r.5,373,000
169,811,000
91,564,000
10,362,000
444,737,000
42,4 3,00(1
:{83,530,000
65,827,000
THE MONTHLY BULLETIN
MERCANTILE
Wholesale dealers report the volume of business in
most line generally satisfactory for this season and
largely in excess of one year ago. Country merchants
evidently are looking for a slump in prices and are
buying in small lots, but the demand for immediate
needs is such that the large number of small orders
go to make up ~m immense volume of bL1sincss for th·..!
wholesalers. Some difficulty is still experienced by
wholesalers in obtaiuing suffident merchandi~e to
suppl}' their customers. This is particularly noticeable in certain lines of dry goods. In some other lines
complaint is made of a tendency on the part of manufacturers and jobbers to place their entire stocks of
merchandise in the hands of retailers, a condition
which it is said will eventually work financial hardship
on all retailers.
Trade Activity.-The demand for clothing continue but d liveries are slow becau e of the tailors'
strike last fall and there seems to le no immecliak
prospect for low r pric s in thi. lin .
hoe dealer:.,
r port large orders on hand and while th re is a r at
d man<l for medium priced footwear the manuf a turc:s ar promising nothing in the way of price concessions.
Drugs are in extra good demand, due in part to
the influenza epidemic.
Furniture dealers and manufacturers fiud it dimcult to obtain goods to supply their trade. The tendency is to demand better grades of merchandise and
usually buyers want immediate delivery. Buying i~
reported heavie t in Colorado and New Mexico. The
influenza epidemic is said to have materially affected
the trade in musical merchandise in February, and
there i5 also an indication that increasing price is
causing hesitation in buying.
The grocery trade how~ indicatiom, of a tendc11C)
to buy for imn c>diate wants and in such quantities a•;
necessary. Speculative buying has been practically
eliminated. Price on the whole are slightly easier
on food stuffs, breadstuffs and meats. It is predicted
that in the readjustment of all values price~ will
gradually recede.
The hardware trade is developing greater activity
with the coming on of a brisk building season with
pricea ruling high and supplies short of demand.
Present indications are favorable in respect to
the ale of automobile supplies and accessories. The
automobile eason, near at hand, is bringing a rush
of buyer o( car , but there is an inadequate supply
of new low priced models. This, together with an indication on the part of many to slow down 011 expenditures, is expected to be a boost for automobile
accessories.
February Sales.-The mercantile activity at this
season is hown in reports to the Monthly Bulletin
from established business houses at trade centers of
the district. The department stores reporting indicated a decrease of sales amounting to 13.9% from the
January record, but an increa e of 31.6% as compared
with the ,ale· in February, 1919. Stock on hand at
the clo ·e of February in these store· were 13.310
larger than at the close of January and 30.7% larger
than at the close of February a year ago.
J
The report of twenty-eight other retail establishments, including furniture and hardware stores,
showed an average of 4.1 % increase of business over
the previous month and an average of 43.1 ?'a increase
over the same month last year. Stocks of goods at
the end of February were 8.7% more than at the close
of the previous month and 26.7% more than one year
ago.
\Vholesale houses reporting indicate an increase oi
81 % in the volume of February trade over that of
the same month last year, due to larger supplies of
goods for distribution and the higher prices at which
sales were made. Stock on hand at the end of February were only about 5% larger than one month
previou s but were about 40% more than on the last
day of February, 1919.
During the month business was particularly good
with the mail order houses. This was owing chiefly
to the 60 days sales and a general feeling of confidence which seems to be ·preading over this section
of the country. February ·ales in several departments
in ·rcascd 100% over January of this y ar.
AGRICULTURE:
Exceptionally mild weather, with the usual amount
of sunshine and a general deficiency of rain or snow
to moi ten the upper soil, were features of the February reports which came from practically all sections
of the great agricultural region lying between the Missouri river and the Rocky Mountains. The insufficiency of moisture, taken in connection with the fact
that there was an unprecedentedly scant precipitation
in January and December, caused considerable apprehension concerning crops now in the ground and
prospects for the early planting. Slight rains in the
southern sections and light snows over the Great
Plains in the first week of March brought some moisture, though followed by severely cold weather which
brought farm work to a stand-still for several days.
But with the return of the warm weather in the second week of March it was apparent that a great
amount of moisture is still needed to insure good
crops this year. The mild weather, howeYer, has been
~xcellent for plowing and preparation for spring plantmg and farmers have taken advantage of this situation
and there has been more activity in their fields than
is usual for this season of the year.
Crop Conditions.-The monthly canvass of crop
condition by the Departments of Agriculture in the
state. of this district docs not begin until after the
growing season has thoroughly opened and farmer:,
are able to tell with some certainty ju t what conditions arc-the fir_ t of the reports giving percentage of
growing_ con<li~ions of the various crops appearing
usually 111 April. In the absence of official information as to conditions at this time some very discourarring and decidedly pes imistic reports from scatter;d
sections have been appearing in the press dispatches.
The statements of the secretaries of agriculture who
are not wholly without reliable information on the
subject, arc more encouraging.
"Most of the casual reports we have received concerning wheat are quite optimi tic," writes J. C.
Mohler, the Kan_i,~s secretary, on M_arch 1. "Usually
under such cond1t10ns as have prevailed there is good
4
THE MONTHLY BULLETIN
rooth growth developed and the plant will undobtedly
respond in a remarkable way when moisture comes."
Mr. Mohler also says of the winter wheat: "I think
little wheat indeed has failed to survive the winter
and with timely and abundant moisture henceforth we
may look forward to good returns."
On March 18 and 19-after the foregoing statement
was made by Mr. Mohler, a severe gale swept over
Kansas and parts of Nebraska and Oklahoma, the
high wind blowing out a good deal of wheat and doing considerable damage. Commenting on this situation, Mr. Mohler said:
"There isn't any doubt that the wind did a lot of
damage; how much we cannot tell at present. But
it is a good deal. But just give Kan ~as a rain an 1
some warm weather and the farmers will find thev
have a lot of wheat growing. I have 'een the sam~e
thing happen many times in the last thirty years. It
is not unusual. Today there are fields which look
like they were completely wiped out. But a nice
warm rain and a warm day will bring thousands of
acres of wheat that looks dead today out of the wreck
and produce a good crop.
"In addition to this, only a part of the big wheal
country is affected.
orthern Kansas ha-; not been
severely injured, as there were heavy fall rains and
considerable snow. In the south central and southwestern parts of the state the winter has been extremely dry and there considerable wheat was entirely
blown away or covered up."
The secretary of agriculture for Nebraska, Lee
Stuhr, in a letter dated March 3, said: "Ninety percent of the reports are to the effect that the winter
wheat is in excellent condition and the remaining ten
percent report conditions as being fair to poor."
Conditions in Colorado are set forth by the sccrcta ry of agriculture, Howard D. Sullivan, in a letter of
March 5, which says: "Our reports la:::it fall showed
that the farmers in Colorado had planted 91 % as much
winter wheat and winter rye as they planted in the
fall of 1918. On the eastern side of the range where
crops are grown most extensively there was a deficiency of moisture at planting time and for some
weeks after and much of the grain did not come up.
Reports from growers gathered in the past two week::indicate that the condition of winter wheat is slightly
below 90% normal. This low condition, our reporters
tell us, is accounted for chiefly by the fact that the
dry weather in the fall prevented good stands in many
localities. The weather is now. favorable for overcoming this adverse condition and the backward grain
is already beginning to come up in the warmer districts. Present conditions point to a light sprin~
abandonment of winter wheat."
The Missouri report of the United States Bureau
of Crop Estimates, issued March 4, is to the effect
that the condition of winter wheat for that state is
poor because the crop went into the winter in bad
condition and has not had enough snow covering. Flat
land has. had considerable strips of water and ice
which will very likely show up in dead spots. Mauy
reports state that wheat is beginning to green up
nicely.
Several reports to grain dealers and elevator mt::n
have described the conditions of wheat as being Yery
low in Oklahoma, some of the reports placing it as
low as 55% in certain localities, due to unfavorable
weather conditions in the late fall and winter. The
late report of the Bureau of Crop Estimates, however,
is to the effect that winter wheat in that state is slowly showing the effects of the favorable weather of the
past few weeks, thereby indicating improvement.
In New Mexico, where there is an unusually large
acreage of winter wheat, the March report says that.
up to that time there had been no abandonment of
winter wheat in that state. Conditions were favorable to all fall grains and the seeding of a considerable
acreage of spring wheat was under way. It was said
that insufficient snow had fallen on the higher levels
for storage of water.
Sowing Oats Early.-A Kansas report says that
30% to 50% of the acreage of oats had been sown
by March 1 in the southeastern counties and some
sowing had been done as far north as the Kansas
river. With favorable weather it was aid the bulk
of the oat , would be m the ground by the middle of
March . Missouri's acreage, at Jcasl in that part of
Missouri which is in this district, will be up to that
of last year, although cold weather and muddy field s
interfered with the preparation for planting in some
sections. In Oklahoma the seeding of oats is progressing very rapidly, according to reports, and there
is a prospect for a large increase of acreage. New
:'..viexico reports seeding of oats going on under conditions that are highly favorable.
Increased Corn Acreage.-Indications point to a
larger acreage of corn this year than was grown last
year in all of the corn states, depending of course on
conditions in the next ixty days. In the western
counties of Missouri a considerable acreage plowed
for wheat last fall and which was not seeded will go
to corn. Oklahoma promises an increa e of the con!
acreage :::iince the wheat area in that state is about
1,000,000 acres le:::is than la t } ear. 1~he Nebraska re
port says that "it is too early to make any estimate-,
as to spring planting, but in a general way the indications are for a very early spring." \Vhich, for that
state means an increased acreage of corn.
Sugar Beets.-The reports from the mountain state-.;
encourage the belief that a compromise between the:
growers and refiners over prices is about to be effected
and there will be a large increase of acres planted to
sugar beets in Colorado, Wyoming, Western Nebraska and Kansas, as well as in adjoining states outside
of this district. While the Mountain States growers
have been contending for a sliding scale of prices for
their beets, based on sugar prices at seaboard, it has
been indicated that the growers will accept a flat rate
per ton for their 1920 crop of beets. The refining
companies have announced a willingness to pay $12.00
per ton, which compares with the contract price of
$10.00 per ton paid for the 1919 crop. The refiners
point out that on three different occasions, when results exceeded expectations, the Great Western Sugar
Company voluntarily paid growers a bonus.
It is realized that the country will be short on sugar
unless some understanding is reached between the
growers and the refiners which will in ure a largl.'.r
THE MONTHLY BULLETIN
production of beets in the Mountain States District.
Montrose, Colorado, is promising an increase of
sugar beet acreage from 800 acres last year to more
than 5,000 acres this year, the latter figure being demanded by the Midwest Sugar Company as a guarantee for locating a sugar refinery there.
Grain Movement.-Arrivals of wheat at the markets
of this district in February were the largest for that
month since 1916, and although they fell short of the
January receipts by about 39% they were more than
double the receipts in February, 1919. Kansas City
reports a total of 4,213,350 bushels of wheat received
in February as against 6,330,000 bushels in January
and 1,291,950 in February, 1919. Prices had a wide
range, No. 1 hard wheat selling early in February
from $2.35 to $2.75 and closing at $2.40 to $2.55, or
20c to 25c lower. Poor flour trade is said to have
had something to do with the falling off of receipts
and the condition of the market, although grain men
are inclinc<l to consider the car shortage and uncertain
conditions for the 1920 crop as being responsible for
the holding back of wheat. It is c timatcd that Kansas farmers on March 1 still had about 36,000,000
bushels of wheat on their hands, or about 24% of last
year's crop. This compares with 4,080,000 bushels in
farmers' hands one year ago. It was also estimated
that about 20% of the 1919 crop of wheat grown in
Nebraska was still on the farms.
Receipts of corn at the markets were about 35%
larger in February than in the previous month and
about 21 % larger than the receipts for the same month
last year. The large February movement was influenced to some extent by a heavy feeding demand
from the Southern states. At the beginning of the
month No. 2 mixed corn sold at $1.46@1.48 and the
month clo~ed with quotation at $1.40@1.42.
Oats receipts ,ere heavy in February and there
was a strong shipping demand from the South and
Southwest. No. 2 white oats sold up to 94c at Kansas City and red seed oats established a new high record at $1.05.
Flour Milling.-The flour trade, aside from orders
already booked, was very unsatisfactory during the
greater part of the month. This, with the embargo
in the East, caused a slowing down of milling operations, to the extent that the output in February was
the smallest for three months. The Northwestern
.Miller's reports of flour output at Kansas City, Omaha
and at 88 interior mills in Nebraska, Missouri, Oklahoma and Kansas outside of Kansas City, place the
5
total barrels of flour manufactured in the four weeks
of February as follows:
Feb., 1920 Feb., 1919
Kansas City . . . . . . . . . . . . . . . . . . . . . . . 283,100
165,600
Omaha . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75,605
29,450
Eighty-eight outside mills ............ 1,176,373
760,283
Total barrels reported ............... 1,535,078
955,33:3
While the foregoing figures do not represent the
entire flour milling output of this district, they are
indicative of the activity of the industry.
Flour Prices.-February reports showed declines in
all grades of flour amounting to about $1 per barrel
on the best and lowest grades and a little below that
on the medium grades. The quotations for Kansas
City for the week of February 4 and for the week of
March 3 are here given:
Feb. 4
Short patents . . .......... $13.25@ 14.00
Standard patents ......... 12.25@13.00
Straights ................ 11.95@12.65
Clears . . . . . . . . . . . . . . . . . . . 6.25@10.7u
March 3
$12.26@ 12.95
11.65@12.05
11.40@11.70
6.95@ 9.50
Western flour millers are to some extent resuming
their for...:ign trade connections according to reports
of millers. The bulk of their recent export sales have
been made to Egypt, but some trade with Asiatic a11d
European countries is reported.
LIVE STOCK.
The reports generally indicate that farm and range
live stock fared well during the first two months of
1920. The stock is healthy and there were very few
losses from disease and exposure. The mild weather
of the late winter made for excellent pasture and
range conditions in the entire district except on the
western slope of the mountains where heavy snows
required shelter and heavy feeding. With this one exception feeding throughout the district this season has
been light.
At the Markets.-The movement of live stock to
the six principal markets of this district in February
totaled 25,643 cars as compared with 37,006 cars in
January and 31,422 cars in February, 1919. Receipts
of cattle were 31 % less than in January and 13%
below the record of February last year. Receipts
of calves showed a loss of 19% from the January
marketings but were 30% more than the number
which came to the markets in the second month of
1919. The largest slump was in hogs, the arrivals at
the markets in February being 38% less than those
arriving in January and 40% below the total number
of hogs coming to the markets in February of last
year. Receipts of sheep were heavy for Fehruarv
the arrivals being close up to those of January ari,t
about 35% larger than a year ago. The receipts of
Receipts of Live Stock at the Markets of the Tenth Federal Reserve District
in February, 1920, with Comparisons.
Cattle
Kansas City ................... 142,055
Omaha . . ..................... 103,592
Denver .. ..................... 25,901
St. Joseph .. .................. 48,708
Oklahoma City . . . ............. 21,843
Wichita ....................... 17,726
Calves
16,393
5,670
2,795
6,400
3,056
Total Feb., 1920 . . . ............ 359,826
Total Feb., 1919 . . ............. 413,834
33,214
25,458
Hogs
209,779
221,290
35,285
129,512
21,782
31,291
Sheep
126.875
178,810
127,720
85,673
1,143
697
Horses & Mules
16,331
2,292
1,842
4,407
1,239
3,988
648,929
1,097,232
520,918
385,106
29,099
14,674
Cars
9,424
7,982
2,007
4,236
1,001
993
25,643
31,422
THE MONTHLY BULLETIN
6
horses and mule fell off 16% from January but were
nearly double the receipts for February of last year.
Storms in the East interfered with the shipping demand, the opening of the Lenten season cut down
the demand for fresh meats, while another factor
which influenced the reduced marketing of animals
was the slow export meat trade.
Prices.-The month of February showed a decline
in prices of all grades of cattle in the face of the light
receipt . The top price of beef steers for the month
was $14.50, on the 2nd, while the top price at the
clo e of the month was $13.25. A , light improvement
was noted at the end of the fir~t week in March when
the top price of beef steer~ reached $14. Sharp a<lvance · also were scored in all divisions and the cattl'
trade assumed a healthier tone than for ~everal week~.
It is noted that a good many feeders have been cashing in cattle purchased last fall at high prices and putting in £re h young feeders, purchased for less mone) .
Hog prices, which at the beginning of February were
$14.85@15.15 on bulk sale. and $15.40 as the top,
were forced d wn to $13.75@14.50 at the lose of the
m 11th l n the first w k of March hog· r rain 1
:ome of the lo t ground and on the bth hulk sale-,
were made at Mi::; ouri river points at $14.75@ 15.15.
Final prices of sheep and lambs for the month wer ·
generally stead~· with tho
at the end of January
and $1 to $1.40 higher than a year ago.
Packers' Activity.-Meat packing operations in Feuruary showed a marked falling off in comparison with
the record of February, 1919, and in a slightly larger
proportion than the reduction of the supply of meat
animals. The record of packers' purchases hows that
in February they took 51 % of the cattle, 88% of the
calve-,, 74% of the hog and 56% of the sheep coming
to the six market· of this di trict. Thi. compare·
with their purchases in February of la::;t year which
were 54% of the cattle, 80% of the calves, 82% of
the hogs and 63% of the sheep marketed. Purcha e~
of animals for ·laughter in February are here gwcn
for the packing centers of the district:
Cattle
Kansas City ...... . 66,729
Omaha .......... . 63,320
St. Joseph ....... . 29,671
Calves
Hogs
SheE'p
92,869
113,117
61,696
24,558
471
646
293,357
245,341
8,636
16,013
3,090
5,846
2,183
Wichita ......... . 6,296
10,278
Oklahoma City . .
1,970
136.913
159,627
107,950
29,665
28,663
15,658
February, 1920 . . . . 184,930
February, 1919 . . . . 222,777
29,102
20,326
478,476
932,047
Denver .......... .
The market for horc:;e on farms i dull at this time
but good price-; are hcing paid for heavy draft hor~e::;
and heavy draft mares. Tnclications ;ire that more
mules will be rai ed this coming year than hor, e colt..
PETROLEUM
Unofficial estimates on the February production of
crude oil in Kansas and Oklahoma place the total
number of barrels for the two tate'-> at 9,548,250,
which is an avcrao-e daily f 329,250 for the tw ntyninc days. Thi_ compare. with the fficial output of
crude oil in February, 1919, of 8,546,853 barrels, r
a daily average of 305,244 1 arrels. Fehrnary thi · year
also showed ~ome improvements over January, the
daily average being S,000 barrels more than the 29-day
month than the daily output for the previous month
of 31 days.
The increased production indicated by the February
figures was from Kan as and from Oklahoma's outside fields, the Cushing and Shamrock and Healdton
fields of the latter state showing a slight reduction
when compared with the record of February, 1919.
Mild weather conditions in Wyoming in February
were favorable to an increa ed oil output in that state
Development Operations.-February work in the oil
fields brought a slight increase of completed wells
and ome increase of daily new production, and also
an increase of new rigs ancl wells drilling which i~
indicative of greater activity in oil developmenb
Kansas showed le s daily new production by 5,380
barrels than in January, while Oklahoma made a gain
of 6,307 barrel daily new production. Wyoming mad
a slight gain of 84 barrel daily. The following indicat s the dcvelopm nt activities in the fields of thi~
district in February:
Comp]<?t1•d
Wells
Kansa::; . .
Oklahoma . . . . . .
Wyoming. . . . . .
181
568
17
February, 1920 . . 766
January, 1920 . .. 655
Difference . . . . .
111
!Ms. Daily New Rigs & W ·lb
Production
Drilling
13~43
484
39,075
1,952
1,499
570
53,917
52,906
3,006
2,980
1,011
26
Oil Prices Increase.-The growing demand for oil
and the knowledge that production continue to fall
short of the demand has brought an increase in price,
of crude oil in all of the field . Refiner , large and
-.;mall, are engaged i11 a scramble to obtain -;upplie:-,
whereas a year ago producers were glad to get $1.60
a barrel for their crude oil, which i · now bringing
$2.50 to $3.50 per barrel in the Kansas and Oklahoma
fields and $2 and better in Wyoming. Kan ·as crude
oil at the end of February was selling at $1.25 more
than in December and on top of this a raise of 25
cents per barrel was made the first week in March.
Oil Prospects Good.-The recent enactment by
Congress of the oil leasing bill is to be followed by
the development of a vast area of land regarded as
having favorable oil possibilities. According to the
U. S. Geological survey the eland aggregate 6,525,605
acre , of which 1,083,900 acres are in Wyoming and
467,030 acres are in Colorado; Utah, California an<l
Montana claiming the bulk of the remaining acre
The most promising prospective acreage is said to be
in Wyoming and Colorado where the oil resource-.
have scarcely been scratched. While the bill will not
become really operative until the Interior Department
clears up some points concerning existing claims,
there can be no doubt but that it will open up the
development of vast oil resources that have virtually
been locked up for years. Meanwhile there is a prosp ct of greater activity in oil development and production throughout Kansas and Oklahoma, while th n·
is also considerabl prospecting in Nebraska and e,,
, 1exico.
7
THE MONTHLY BULLETIN
MINING.
Zinc and Lead.-The month of February witnessed
heavy shipments of zinc blende ore from the Missouri-Kansa-Oklahoma district, although the average
price paid for zinc was approximately $4.50 lower
than the previous month. The total shipments for the
µionth were 50,456 tons of zinc or an average of 12,614 tons per week, as compared with 10,000 tons last
month and 9,857 tons for the same period last year.
The average price paid was $51.21, as compared with
$56.82 last month and $41.72 for February, 1919. The
total value of zinc blende ore shipped was $2,584,198.
There is approximately 30,000 tons of zinc blende ore
in the bins of the ore producers, which has been purchased, and which compares with 12,000 tons for the
month of February, 1919.
Calamine shipments for the month were also larger
than have been recorded for several months, 1,169 tons
being shipped, or a weekly average of 292 tons. The
average price obtained for calamine during the month
was $40.00, which compares with $25.00 to $30.00 for
the same period last year.
Lead ore to the value of $859,439 was shipped from
the di strict during the month. The total number of
tons shipped was 8,436 or an average of 2,114 tons
weekly, which brought an average price of $101.63.
This average price compares with $98.19 for last
month and $61.95 for the same period last year. There
is approximately 100 tons of surplus stocks in the
bins of the ore producers, practically the entire tonnage is bought up each week.
Weather conditions during the month have been excellent and the production during the entire month
has averaged around 9,000 tons of zinc. Each week
sees additional properties being opened up, and great
activity is anticipated in this respect during the next
few months.
,.fhe problem of moving the accumulated ore from
the district is a difficult one, as has been during the
past eight or nine months. The shipments now ap-proximately equal the weekly purchases, and with th e
60,000 to 80,000 tons of accumulated stocks and the
activity in opening up new properties, the problem is
indeed a serious one.
Metal Mines.-Conditions of metal mining in Colorado have been showing considerable improvement.
The labor situation has been improving and except
in the case of the smaller and more remote camps,
the operators seem to have all the men they need.
A large number of new operations are being started,
particularly in those camps where silver values predominate. Authentic reports of new ore bodies in
various parts of the state have been received and the
production of ore is on the increase.
Coal.-The coal mines of this district were busy
through February and the percent of operation tu
capacity was high as compared with former months.
The highest percent, which was 83.2% of capacity,
was in Colorado where conditions were generally more
favorable for coal production than for some time.
The following shows the percentage of present full
time output of bituminous coal in this district and
also the percent of losses on account of transportation
disability, labor shortage, strikes, mine disability and
no market:
Production
State
% Cap.
Colorado . . . . .. . 83.2'fo
Kansas . . . . ..... 63.5%
Missouri . . . .... 74.9%
Oklahoma . . . . . . 81.6 %
Trans.
Disab.
9.0 %
19.0%
4.4%
6.4 %
Labor
Shtg.
0.4 %
2.8%
4.4 %
2.9%
Strikes Mine
No
Disab. Market
0.3%
1.7% 4.3%
0.9 % 12.1% 1.3%
0.2%
7.7% 7.7%
0.6%
5.0% 3.4%
It will be observed by the foregoing that transportation disability and mine disability were responsible
for the greater part of loss of operating activity.
BUILDING AND CONSTRUCTION.
Permits issued in February in seventeen cities oi
this district authorized the erection of 1,754 buildings
estimated to cost $7,151,736. This compares with
1,044 permits issued in February, 1919, and the estimated cost $2,052,839. The total for February, however, was $1 ,640,219 below the estimated cost of buildings for which permits were issued in January of this
year. The permits issued in the first two months of
1920 numbered 2,939 and the estimated cost of buildin~s was $15,94~,691. This compares vvith 1,702 permits and an estimated cost of $3,605,031 for the first
two months of 1919, the increase for the two. months
of this year being 342.2% on the estimated cost.
Building Operations, Seventeen Cities, for February.
New Construction
Number
Value
175
$2,244,900
Tulsa, Okla...
52
Omaha, N ebr. . . . ..........•....
825,113
237
654,450
Denver, Colo. . .
70
607,268
Oklahoma City, Okla...
465,100
Kan sas Ci t y, Mo ................ 108
90
493 ,600
Wichita, Kans . . .
62
187,450
Okmulgee. Okla................
106,300
Muskogee, Okla.................
15
21
93,858
Lincoln, Nebr. . .
18
89,450
Colorado Springs, Colo............
63,300
16
Kansas City, Kans...
6
31,000
'fopeka, Kans. . . . ...... . ........
22,900
7
St. Joseph, Mo. . .
6
11,750
Pueblo, Colo. . . . ................
5
12,300
Cheyenne, Wyo ...
2,000
4
Joplin, Mo ....................•
2
6,000
Leavenworth, Kans. . . . ........•.
..................
................
.........
...... .........
...............
...........
..............
..............
February, 1920 ..
February, 1919 ..
*Decrease.
...............
. .. . . .. . . . . ....
884
444
$5,916,738
2,665,59ti
Repairs & Alterations
Value
Number
70
$ 74 ,500
275,0:38
88
175,350
141
119
202,4 23
183
175,300
60,S00
38
105,250
2-4
19,575
8
38
31 ,287
50
13,615
26,190
27
25
24,850
28,375
20
14,490
25
2,900
5
9
5,325
870
600
$1,234,998
384,244
Total Construction
Number
Value
245
$2,319,400
140
1,100,150
378
820 ,800
189
809,691
291
640,400
128
554 ,1 ~o
76
202 ,700
23
125,875
59
125,145
68
103,065
43
89,490
31
55,850
27
51,275
31
26,240
10
15,200
13
7,325
2
6,000
1,754
1,044
$7,151,736
2,062,839
Increase
560.7%
300.4%
278.5%
461.8%
77.5%
250.2%
51.6%
41.9%
83.5%
2155.2%
41.7%
84.9%
173.4%
13.1%
253.5%
*60.5%
248.4%
8
THE MONTHLY BULLETIN
Prices.-Lumber prices have not changed to any
great extent in the past month in this district, although
there has been omething of a flurry because of announced reductions at the Pacific Coast and at Chicago. The effect of the reductions elsewhere, hovvever, has caused retailers to buy for their present needs
only, as they do not desire to be overloaded with
high priced stocks. But manufacturers are firm and
offer no encouragement of lower prices.
LABOR.
No material changes were noted in the reports for
February on the labor situation beyond the fact that
the mild weather, betokening an early spring, brought
increa ed activity in nearly every line of employment
and incidentally increased the demand for both skilled
and unskilled labor. In practically every quarter the
impression prevails that there is to be a decided shortage of labor. "While this is largely a matter of spculation, it is noted that the federal and tate labor departments are opening employment offices and in
many ways arc preparing to supply th demand.
Farm Labor Supply. -Although the s ason i · just
starting, it is evid ·nt that the matter of . upplying
labor f r the farms is to be a big task this year, and
while farm wage~ last year were the highest ever
known, indications point to even higher wages thi-;
year in many localities. The Departments of Labor
for Nebraska, through Superintendent L. C. Cran<laJl,
reports on March 4th:
"There has been quite a demand for farm hand~
during the last week, both married and single men.
and we have a shortage of 50 or 60 at the present time.
This will increase as the spring season comes on.
ingle men are getting from $50 to $75 with boanl
and room on an average, while married men get from
$65 to $75 with separate house, cow. garden pat.ch
and the privilege of raising chickens."
Reports of a prospective shortage of farm labor also
come from other states of this district, indicating that
the situation de crib d in the foregoing applies to
other agricultural section .
In other Industries.-lncreased activity in the mining regions of this district, especially in the lead and
zinc field sof Missouri, Kansas and Oklahoma is reported. Manufacturing demand for labor is increasing and the employment agencies are receiving many
calls, the Nebraska department at Lincoln having sent
600 men in February to manufacturers. Some reductions of the working forces at meat packing plant
have been reported, due to the slowing down of
slaughtering operations from the high war-time activity. The demand for men in the building lines is
unusually large for this season. Transportation systems are fairly well suppli d with men, but there i
a growing demand for common labor.
New Wage Demands.-There have been only a few
strikes in this district since the beginning of the year
and generally these were promptly settled. The approach of pring, however, is bringing an unu ·ual
number of demands for increased wage . The building trades have about all presented demand' for iner ased wages for the 1920 building ca on in the
cities of this district. In a good many cases co11-
tractors have indicated that they would meet these
demands, the general tendency of which is to increase
the co t of building.
The labor situation in the coal mining districts has
been quiet with the miners busy at work pending efforts at Washington to settle their wage demands.
The refusal of John P. White, representing the miners
on President Wilson's Commission, to accept a 25%
increase recommended by the Commission, brought a
new element of uncertainty into the controversy .. Mr.
White is contending for an increase of 35% and a 7
hour ,1v·ork day, although it is reported there were
n_o radical differences between the miners' representatives and the majority of the Commission on other
questions involved.
Statement of Condition of
FEDERAL RESERVE BANK OF l{ANSAS ClrfY
Including Branches
RESOURCES
At Close of Business
March 5, 1920 March 12, 1920
Gold Coin and crtificatC' .... $
390,247.GO $
'113,067.60
Gold S ttlem nt Fund F. R.
Board . . . . . . . . . . . . . . . . . 38,716,284.66 34,445,394.41
old with F. R. Ag nt....... 38,577,090.00 37,507.680.00
Gold R demption Fund. . . . . .
4,018 642.20
4,933,652.20
Gold with Foreign Agents. . .
5,415;463.60
5,413,445.28
Legal Tender Notes, Silver, etc.
698,644.50
814,685.15
Bills Discounted:
Secured by Govt. War Obligations ............ . 40,211,086.08 39,778,573.08
All other ............. . 62,235,640.85
61,209,251.31
Bills Bought in Open Market.
5,549,540.83
4,376,009.01
U. S. Govt. Bonds .......... .
8,867,750.00
8,867,750.00
U. S. Cert. of Indebtedness .. . 15,940,500.00 15,896,500.00
Bank Premises . . ......... .
461,686.76
461,962.56
Uncollected Items and other
Deductions from Gross
Deposits . . . . . . . . . . . . . . 95,303,313.42 84,000,957.70
6% Redemption Fund against
F. R. Bank Note ....... .
D95,590.00
996,590.00
All Other Resources ......... .
175,248.01
192,904.96
Total Resources .......... $317,556,728.41 $299,307,413.16
LIABILITIES
Capital Paid In ............. $ 4,159,550.00 $ 4,162,550.00
Surplus . . . . . . . . . . . . . . . . . . .
6,116,033.36
6,116,033.36
Government Deposits . . . . . . .
4,845,155.16
5,260,847.52
Due to Members. Res. Act.... 97,260,710.71
90,664,789.10
Other Deposits . . . . . . . . . . . . .
3,594,037.93
3,563,059.95
Deferred Availability Items. . 78,664,960.06 67,098,494.33
F. R. Notes in Actual circulation ................... 103,189,550.00 102,783,935.00
F. R. Bank Notes in actual circulation . . . . . . . . . . . . . . . 18,264,800.00 18,127,900.00
All Other Liabilities.........
1,461,931.19
1,529.803.60
Total Liabilities .......... $317,556,728.41 $299,307,413.16
OTHER TOTALS
Total Gold Reserves ......... $ 87,117,727 96
Total Earning Assets ........ 132,804,517.76
Total G1·oss Deposits. . . . . . . . . 184,364,863.86
Ratio of Total Reserve to Net
Deposit and F. R. Reserve
note liabilities combined. .
45.6%
Ratio of Gold Reserve to F. R.
Notes in actual circulation
after setting aside 36%
against net d posit liabilities . . . . . . . . . . . . . . . .
64.3%
CLEARINGS
Total Clearings for Week .... $299.867,302.40
Total number of items handled 1,014,876
$ 82,713,229.39
130,128,083.40
166,587,191.20
45.0o/c
52.3%
$301,105,709.81
1,043,184
@FedFRASER