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0-----------------------------------------a
THE MONTHLY REVIEW
Covering Conditions in the Tenth Federal R eserve District
FEDERAL l{ESERVE BANK OF KANSAS CITY
For the Information of Member Banks and Business Interests of this District
ASA E. RAMSAY, Chafrmon Board Directors
C. K. BOARDMAN, Assistant Ftderal Reserve Agent
and FedM"ol R1serve Agent
and Setret•ry
a--------------------,----------------------a
VoL. 6 No. 3
Kansas City, Mo., March
URTHER improvement of conditions in the
Tenth Federal Reserve District is reflected
by the reports from which this Monthly Review for March is written. Some lines of
trade and industry are slow to rally from the depression incident to readjustment. But, all in all, the reports are such as to encourage the belief that well
sustained progress is making toward better, sounder
and healthier conditions throughout the District ancl
Nation.
Following the mildest February of recorded weath~r
history, the transition of winter into spring was so
nearly imperceptible that early March took on much
of the usual spring activity. This was a bit disappointing to sales of winter wear and fuel. On the
other hand it was a stimulus to spring trade in many
lines; it quickened to a considerable extent manufacturing activities, and it gave the farmers an opportunity to do their spring plowing and planting earlier
than usual without employing so much hired help.
The labor situation, however, is unsettled, due to
efforts at readjustment. Some reductions have been
accepted by employees, but those recently proposed
by the railroads and meat packing plants are being
resisted, the former appealing to the Railroad Board
and the latter voting to strike, though not averse to
arbitration. There have been ! recent reductions of
forces by railroads, some of the manufacturing plants
and business houses, but on the whole the early sprigg
activities noted have absorbed a big part of the unemployed.
FINANCIAL.
Still furth€r progre s in the direction of a reduction
of the volume of credits is reported in this Monthly
Review, although accompanied by a decrease in the
aggregate of reserves and deposits. But the demand
for loanable funds in the Tenth Federal Reserve Dis. trict-in which agriculture, live stock, mining and petroleum are the principal industries-continues quite
heavy and there is no apparent tendency toward a
softening of rates. Bankers seem from their reports
to have met the large March 1 farm settlements and
. the income tax payments without great inconvenience.
The early arrival of spring weather. which is brinp-··
ing increased activity in many lines of industry. is adding to the volume of cash and credit requirements for
~uch purposes. Commercial and market needs are
F
21, 1921
THIS COPY RELEASED. FOR PUBLICATION IN MORNING PAPERS
MAR. 28
fairly active although the lower prices on merchandise, grain and live stock call for less money than in
months past when prices were much higher.
Considerable interest is being awakened among
bankers of the southwest in trade financing, with particular reference to promoting foreign trade for the
products of this district. There are also some evidences of interest displayed by bankers in bankers'
acceptances. But it is apparent that the heavy demands on this district for a large production and
marketing of necessities are absorbing their available
funds; and thus at present they are not in position
to invest heavily in the acceptance market. The Federal Reserve Bank at this time has only comparatively
small holdings of bills, due mainly to the fact that
member banks' requirements are heavy.
The Federal Reserve Bank Statement.-Total gold
reserves of the Federal Reserve Bank at the close of
business March 18 were $75,972,889, a decrease of $8,710,005 or 10.3% from the previous week and $4,012,889 or S % less than the total reported for the corresponding date last year. The ratio of total reserve:,
to deposit and Federal Reserve notes liabilities combined was 43.1 %, which compares with 48.8% on
March 11 and 44.2% on March 19, 1920. Federal Reserve notes in actual circulation as of March 18 were
$96,977,325 which is $1,600,450 less than one week previous and $5,753,920 less than one year ago. Federal
Reserve Bank notes in actual circulation were $11,747,000 as compared with $11,956,400 one week previous and $17,541 ,300 one year ago, the decrease of
these notes for the year being 33%.
The March 18 statement shows $35,178,789 ' of bills
discounted which were secured by Government War
obligations. howin!s an increase of $1,567,672 over
the total of March 11, but $1,568,467 less than at the
corresponding reporting date in 1920. Other bills discounted totaled $64,540,641 in the last report or $1,264,668 more than on March 11 but $1,310,622 less
than one year ago.
Total gross deposits were $86,308,140 as compared
with 85,646,959 as of March 11.
Member Banks Reports.-Eighty-two selected member banks, b their weekly statement to the Federal
Reserve Bank of Kansas City as of March 4, reported
an aggregate of $559,451 ,000 of loans and discounts
and investments, which was $3,368,000 or .59% less
than t he total loans and discounts and investments
(Compiled March!'21, 1921)
2
THE MONTHLY REVIEW
reported by the same banks as of February 4. Loans
secured by Government obligations decreased $1,318,000 and loans secured by stocks and bonds other than
U. S. Bonds decreased $2,970,000, while there was an
increase in the volume of all other loans which amounted to $2,730,000. Investments by these banks in U. S.
Bonds increased $559,000 in the four weeks, while
there was a decrease of $366,000 in the investment in
U. S. Victory notes.
Net demand deposits on which reserve is computed
aggregated $401,671,000 which was an increase of
$424,000 in the four weeks' period. For the same
period time deposits were increased $600,000 and on
March 4 totaled $101,132,000. Government deposits
showed a reduction of $263,000.
Member banks' collateral notes secured by Government obligations were $18,643,000 on March 4 or
$758,000 less thap. one month previous. Bills discounted by member banks secured by Government obligations were $3,881 ,000 or $558,000 less than on February 4, while other bills discounted amounted to $37,723,000 which was $7,352,000 less than the amount
reported for this item on February 4.
Clearings.-The weekly reports of clearing houses
during March to this date reflect decreases in the
volume of transactions of banks in cities of this district.
The clearings for the full month of February were
31 % less than the aggregate for February, 1920, for
. clearing houses reporting for the month in both year$.
Clearings for the year to date are 29.7% less than for
the corresponding period last year. Following are the
clearings for 31 cities for February:
Pct.
Feb., 1921
Feb. , 1920
Change
Kansas City, Mo .. .... $ 587,387,959 $ 924,040,930 -36.4
Omaha, Nebr........ 141,090,564
222,901,976 -36.7
Denver. Colo........• 104,699,043
136,359,289 -23.2
Okla. City, Okla......
91,667,468
50,891,663
80.1
St. Joseph, Mo .......
43,901,870
71,645,481 -38.6
Tulsa, Okla. . . . .....
33,731,540
53,086,074 -36.4
Wichita, Kans. . .....
32,688,405
53,871,389 -39.3
Kansas City, Kans ... .
15,425,977
16,010,338 - 3.6
Muskogee. Okla......
14,325,406
17,429,304 -17.7
13,469,192
21,860,030 -38.3
Lincoln, Nebr... ·--------·
Topeka, Kans. . ......
11,601,484
14,372,146 -19.2
Hutchinson. Kans. • ..
7,626,000
12,220,000 -37.6
Cheyenne, Wyo. . . . .•
5,944,334
6,622,722 -10.2
Grand Island, Nebr....
4,613,859
Joplin, Mo .. ........
7,821,000 -45.8
4,233,000
Colorado Spgs., Colo ...
4,832,409 -21.6
3,788,296
Bartlesville, Okla. . . . _ 3,602,031
4,408,080 -18.3
Pueblo, Colo. . .
3,446,831
3,622,744 - 4.9
Independence, Kans. . .
2,530,323
Pittsburg, Kans ......
2,334,627
2,386,801 - 2.2
Atchison, Kans ..
2,125,908
3,243,379 - 3.4
1,983,819
McAlester, Okla. . . ...
3,~42,000 -439
1,933,118
3,099,899 -37.6
Hastings, Nebr.......
2,885,430 -39.2
Fremont, Nebr..
1,752,881
1,557,650
2,212,418 -29.6
Guthrie, Okla. . ......
1,681,719 -16.2
Parsons, Kans. . .....
1,407,965
Lawrence, Kans. . ....
1,252,791
1,728,704 -27-5
Miami, Okla. . .......
1,069,674
1,419,900 -25.9
1,053,900
Lawton, Okla. . . .....
854,987 -17.9
701,67-3
Grand Junction, Colo..
423,989
786,063 -46.1
Emporia, Kans .. . . . .
Total February . .... $1,143,371,577 $1,645,736,880 -31.0*
3,647,004,369 -29.7*
Total Year to date. . . 2,581,165,139
*Percentage computed on cities reporting for February of
both years.
Debits by Banks to Individual Accounts.-The
weekly reports from sixteen reserve cities of the Tenth
Federal Reserve District reflect a decrease of 24.9%
in the aggregate of debits by banks to individual accounts for the four weeks ending February Q, 16, 23
and March 2, compared with debits for the corresponding weeks last year. The four weeks' total was $957,957,000 for 1921 and $1,275,686,000 for last year. The
debits reported for the week ending March 9, 1921,
and March 10, 1920, were as follows :
March 9, 1921
Atchison ..•......•....•.... $ 1,500,000
Bartlesville • • . • . . . . . . . . . . . •
2,218,000
Cheyenne . . . . . . . . . . . . . . . . . .
2,073,000
Colorado Springs • • . . . • . • • . • :2,681,000
Denver • • . . . • . . . . . . • . . . . ..• 32,771,000
Joplin • . . • . . . • . . • . . . . . . . . ...
2,274,000
Kansas City, Kans...........
3,777,000
Kansas City, Mo............. 68,754,000
Muskogee . • • . . . . . . . • • • . • . . •
6,176,000
Oklahoma City . . • . . . . . • . . . . 26,664,000
Omaha . • . . . . • • . . . . . . . . . • . . 48,438,000
Pueblo • . . . . . . . . • • . • . • • • • . . .
3,969,000
St. Joseph • . . . . . . . • . • . . . . . . 18,634,000
Topeka • • • . . . . . . . . . • . . . • . . •
4,598,000
Tulsa . • . . . • . . . • . . • . • . . • . • . • 20,923,000
Wichita • • • • . . • • . . . . • • . • • . . .
9,969,000
Total sixteen cities .....•.... $244,419,000
March 10, 1920
$
547,000
3,044,000
1,888,000
3,445,000
43,597,000
3,374,000
4,546,000
88,669,000
6,876,000
21,398,000
66,206,000
4,256,000
20,838,000
6,816,000
27,343,000
14,233,000
$316,075,000
Failures.-Insolvencies during the month of February in the Tenth Federal Reserve District numbered
85 as compared with 82 in January and 29 in February
of last year. Several defaults of unusual size in February swelled the aggregate of liabilities for that
month to $3,993,889. This total compares with $1,767,286 of liabilities in January of this year and $484,025 of liabilities in February, 1920, when commercial
mortality was at an unusually low level.
MERCANTILE.
Wholesale trade continues to improve. In dry goods
there has been a steady increase in the number of orders placed, but merchants are exercising caution by
buying for immediate wants and not inclined to anticipate the future. February sales equal or slightly
exceed sales in February, 1917, 1918 and 1919. In
other words the trade is now reported about normal.
Figures given as showing an increase of 50% in sales
in February over January, and 50% less than in February last year, are confusing unless it is explaine<i
that in the fall of 1919 many of the wholesale houses
took heavy advance orders for shipment in the first
quarter of 1920, whereas practically no advance orders
for hipm~nt in the first quarter of 1921 were taken
in the closino- months of 1920. This accounts for the
big shrinkage in sales in the early part of 1921 as
against the early part of 1920, and it also accounts
for the fact that outstandings at the end of February,
1921, were about one-third less than they were at that
time in 1920.
The millinery trade is having a very good season.
The tendency is for popular priced merchandise and
buying- is noticeably conservative. The gain in sales
for February over February of last year by dealers in
thi district is attributed in part at least to the fact
that many large retail dealers in this district who
THE MONTHLY REVIEW
visited the more distant markets in past seasons are
now buying in small lots at their nearest home trade
centers, and saving railroad fares and high freight anu
express costs. There is some indication of increased
activity' in the shoe trade and also in men's and
women's furnishings.
Groceries and produce are in fair request and sales
are a shade higher than a year ago. Attention is called to the report of one of the largest wholesale grocery companies in this _district which shows the tonnage of sales for February, 1921, was 5% more than
the tonnage of sales for February, 1920, notwithstanding the money value of goods sold in February for
that house was 22% less than the money value of
goods sold in the same month of. 1920.
Drug sales continue to fall below the sales for the
same period last year, which is not surprising with
lower prices prevailing this year.
Wholesale furniture trade in February showed decided improvement over January but only in about
one-half the volume of last year with sales expressed in
dollars as a basis for comparison. The trade has apparently not yet come back to normal. Furniture and
bedding are now priced approximately 40% under
February, 1920, consequently wholesalers are obliged
to handle more pieces to make up the volume. Stocks,
however, are assuming more normal condition and deliveries from furniture factories are very prompt. The
high freight rates are reported by some dealers as
checking the buying by retailers.
Hardware sales are improving materially as the
season advances, but they are still considerably below
last year. Retailers in the small cities and country
towns are buying only limited quantities, owing to the
light sales they are having with the farm trade.
The mild weather in February caused a big increase
in sales of paint by wholesalers to retailers for that
month as compared with January, but in money value
the sales for this year are decidedly below last year.
Following is a summary of percentage of increase
or decrease in sales by wholesalers for February, 1921,
as compared with January, 1921, and February, 1920:
Feb., 1921, compared with
Jan., 1921
Feb., 1920
Dry Goods, 1 store . . . . . . . . . . . . 50.0%
-50.0%
Millinery, 2 store . . . . . . . . . . . . . 12.0%
36.9%
Drugs, 2 stores •.......•...... - 3.8%
-32.3%
Hardware, 6 stores • • . . . . . . . . 27.0%
-41.3%
Paints, 1 store . . . • . . . . . . • . . . • 40.7%
-34.9%
Furniture, 3 stores • . . . . . . . . • . . 72.9%
-52.8%
Groceries, 6 stores ............. 1.61 %
-21.5%
The implement trade is reported quiet, though
slightly improved as compared with the earlier weeks
of the year.
Retail Trade.-A gradual expansion of retail trade
is reflected in the reports which come from many
cities of this district. This improvement, however, is
somewhat spotty since the slowing down of industries
in some sections has a tendency to retrict the purchasing power of the people and country buying in
other sections has not yet attained a high state of
activity.
The department store reports from principal cities
indicate sales in February were better than in January,
3
and even with low prices the turn-over closely approximates that of the same period last year. The
stores as a rule are better stocked at this time than
they were a month ago, and though their purchases
from the wholesalers are on small orders, they are in
good condition to handle the spring trade.
A fair idea of the extent of retail trade in this di3trict may be gained from the following summary of 17
department store reports to the Monthly Review covering February business:
Percentage increase ( or decrease) of net sales during
February, 1921, over net sales during same month
last year ..•...............•.....•........ Inc. 4.1 %
Percentage increase ( or decrease) of net sales from
Jan. 1, 1921, to Feb. 28, 1921, over net sales during
same period last year .................... Dec. 1.8%
Percentage increase ( or decrease) of stocks at close
of February, 1921, over stocks at close of same
.month last year .........•.....•.•......... Dec. 18.1 %
Percentage increase ·( or decrease) of stocks at close
of February, 1921, over stocks at close of January, 1921 •...........•.•......••........ Inc. 10.0%
Percentage of average stocks at close of each
month this season (commencing with January,
1921) to average monthly net sales during the
same period ...............•.....•......•..... 460.3%
Percentage of outstanding orders (cost) at close of
February, 1921, to total purchases (cost) during
the calendar year, 1920....................... 11.8.%
Percentage of collections during month of February,
1921, on amount of outstanding accounts on January 31, 1921................................. 47.3%
Percentage of collections for same period last year. . 48.4%
Lumber and Materials.-Sales of lumber and other
building materials are reported as becoming more active with the opening of the building season and quite
a few large bills are being figured with fair prospects
of a goodly percent going through. Line yards are in
fairly good shape but there is not a great deal of activity in rural districts. Prices of practically all building grades of lumber have shown further decline.
There is a vast amount of building projected particularly in the larger cities but how much of this building
will be done this season will depend largely upon the
adjustment of wage scales and working conditions for
which negotiations are now pending.
Price Levels.-The current reports show further deflation in commodity prices but declines recorded are
small and of less sensational character than those reported in the previous six months.
Collections.-Scattered reports covering various
lines of trade throughout the district show that there
was some slight improvement in collections during
the month of February and the sentiment among business men in this respect was one of hopefulness.
AVERAGE CASH SALES OF GRAIN AT KANSAS CITY
ON DATES MENTIONED IN CENTS PER BUSHEL
Wheat
Feb.18
Mar.4
Mar.18
No. 2 Dark hard winter ...••.. 172
170
160
No. 1 Hard winter ........... 167½
165
154
No. 1 Red •.
181
176
157
Corn
No. 3 White .. ...............
58¾
60½
68
No. 3 Yellow ••.•........•...
60
60
56½
No. 3 Mixed .•
68
69
66
Oats
No. 3 White ••
44½
46
41
................
..............
..............
4
THE MONTHLY REVIEW
AGRICULTURE.
The winter just closed was the mildest and without
doubt the most pleasant that has been recorded for
the states which comprise the Tenth Federal Reserve
District. There was no zero weather in February and
the percentage of precipitation was smaller than is
usual for that month. At the end of the month the
soil in many sections of the larger crop producing area
was beginning to show the need of moisture, but this
was supplied during the first half of March by rains
of varying depth over sections where most needed.
The open winter was favorable for plowing and pre:
paring the soil for spring planting. vVeather conditions generally stimulated growth of vegetation and of
crops in the ground, but as a result heavy insect
infestation for the spring months was encouraged,
and considerable uneasiness is felt in various sections of the district as well as in adjoining agricultural districts.
The growing condition of winter wheat is generally
fair to good all over the United States, according to
the reports of the State Boards of Agriculture and the
crop reporting service of the United States Department of Agriculture. In the principal wheat growing
states of the Tenth Federal Reserve District conditions reported are such as to make the outlook especially promising. Winter wheat is well advanced and
the acreage planted last fall runs but little below the
large acreage harvested last year. An outbreak of
green bugs is threatened in Oklahoma and Kansas,
which .if not checked by rapid increase of parasitic
enemies may cause damage comparable with that in
1907. In that year April was the month of greatest
damage in Oklahoma, May in Kansas and July in the
spring wheat regions of Minnesota and the Northwest. Some reports from Kansas and Missouri tell of
the presence of the hessian fly, but this condition is
not causing serious alarm at this time. There has
been practically no winter killing of wheat reported.
On the .whole the condition is very satisfactory.
On account of the open winter and the low temperature there has been a larger seeding of oats than usual
to this date. In Oklahoma and in the lower half of
Missouri and Kansas seeding has been finished. Oats
generally are doing well.
On account of the heavy crop of corn last year and
the large carry-over of corn in cribs on farms there
are reports here and there of reductions in the acreage
to be planted to corn this spring. However, the ve·r y
favorable winter enabled the farmer to make good
headway in preparing t~e soil during F_ebruary ~nd
March to this date. It 1s too early to give anythmg
like an accurate estimate of the 1921 corn acreage.
In Oklahoma much of the cotton of last year is still
in the fields and being plowed under. The reports
indicate some reduction in cotton acreage this year,
due to the low price and the- difficulty experienced
by farmers in financing their crop activities.
A large acreage of potatoes is forecast for the Kaw
Valley potato region in Kansas. The ground has been
in excellent condition and many fields were planted
during the first two weeks of March.
Fruit prospects are especially good at this time with
practically no winter killing, but buds have been
pressed forward so rapidly by the mild weather that
there is still apprehension felt on account of possible
freezing during April. Peach and plum buds have
especially advanced not only in southern Missouri,
Oklahoma and New Mexico, but throughout southern
Kansas and up the Missouri Valley. The condition of
fruit in this section is reported around 90%. The
strawberry crop is beginning to move from the Gulf
Coast sections and is making rapid growth in southern Missouri, Arkansas and Oklahoma, with an increased acreage reported. A Colorado report says that
many apples will not be marketed this season from
Mesa and other western slope counties, due partly to
poor quality and largely to poor markets. Prices in
such sections are quoted as around 60c per bushel.
There is some interest being shown in additional apple
orchards in Missouri with good crops for this year
practically assured.
Farm Reserves of Grain.-With every prospect favorable for a good crop year in 1921, the reports of
the Department of Agriculture indicate that larger
stocks of grain were held on the farms in the United
States March 1 than on the same date in any year of
history, with the possible exception of wheat in 1916,
the year following the nation's billion bushel wheat
crop. The percent of the 1920 crop of grain still in
farmers' cribs and bins in the states of this district
is even larger than the percent of carry-over for the
entire nation. The reports from Kansas, Nebraska,
Colorado, Oklahoma and vVyoming, the great grain
growing areas of this district, indicate that the farmers were holding 307,162,000 bushels of corn, or 56.1 %
of their total 1920 crop. Their wheat holdings on
March 1 totaled 81,737,475 bushels, or 28.9% of the
1920 crop. The carry-over of oats by farmers of these
states totaled 116,974,120 bushels, which was 50.1 %
PRODUCTION OF WHEAT, CORN AND OATS (BUSHELS) IN 1920 AND QUANTITY HELD ON FARMS MARCH 1
IN LEADING GRAIN STATES OF THE KANSAS CITY FEDERAL RESERVE DISTRICT.
Wheat
Corn
Oats
Production
On Farms
Production
On Farms
Production
On Farms
Colorado • . • . . . . . . . . . . . . . . . . . . . . 22,821,000
6,390,000
17,450,000
9,423,000
8,058,000
*4,029,000
Kansas .•.......•.............. 137,056,000
41,117,000
137,535,000
74,269,000
68,799,000
33,024,000
Missouri 19 counties ............ 11,255,000
2,757,475
45,595,000
23,689,400
14,212,000
7,248,120
Nebraska .....•.....•...•...... 60,480,000
19,958,000
255,528,000
160,983,000
83,040,000
48,163,000
Oklahoma . . • . .•..•............ 46,240,000
10,635,000
89,320,000
38,408,000
48,000,000
18,240,000
Wyoming . . . . . • . . . . . . . . . . . . . • . . 5,081,000
1,880,000
1,560,090
390,000
.........
6,270,000
81,737,475
546,988,000
307,162,400
District . . •.•..•............... 281,933,000
233,509,000 116,974,120
207,501,000
United States •....•............ 787,128,000
3,232,367,000 1,572,392,000
1,526,055,000 689,566,000
*Estimated.
Percent of 1920 crop on farms in states of the Kansas City Federal Reserve District: Wheat, 28.9%; Corn, 56.1%;
Oats, 50.1 %.
Percent of 1920 crop on farms in United States: Wheat, 26.4%; Corn, 48.6%; Oats, 45.2%; Barley, 34.6%.
5
THE MONTHLY REVIEW
of the entire crop of 1920. Compared with last year's
holdover these figures show 127% more corn on farms
in this district than at the same date last year, while
the increase of wheat this year over the carry-over
for 1920 was 27.9%.
The h.eavy carry-over of wheat is attributed very
largely to the effort on the part of very many farmers
to so distribute their marketings as to maintain a
higher level of prices. In regard to corn, however, it
is noted that farmers generally are more or less indifferent about the immediate market. The huge crop
of last year has given them an opportunity to store
good reserve stocks. for the first time in five years
and there is a disposition to hold on to the bulk of
these res_erve stocks, at least until a good crop is assured for this year.
The Grain Market Movement.-Marketing of wheat
in this district in the month of February was on a
larger scale than in any previous February, the receipts at the four principal markets being 9,463,050
bushels as compared with 5,850,050 bu hels in February, 1920, an increase of 62.7%. The increase was
shared by all markets in about the same percent. Receipts of com at the same markets were 4,645,000
bushels against 5,038,850 bushels a year ago, a decrease ·of 393,850 bushels or 7.8%. The receipts of
oats also showed a very large falling off, the decrease
being 1,748,000 bushels or 64% for the four markets.
The active marketing of wheat in February was a
continuation of the disposition of producers to unload
a large portion of their surplus for which they had
anticipated higher prices. ·Hard wheat had a liberal
price range during the month.
Flour and Milling.-Considerable strength developed in milling situation in the southwest during the
latter part of February and while there were no large
bookings, the flour trade showed signs of healthy improvement during that week and in March. The flour
output at reporting mills in this district in February
totaled 1,192,730 barrels as compared with 1,535,078
barrels in the corresponding month last year. Kansas City mills, with a total of 301,380 barrels to their
credit in February, made an increase of 6.4% over the
output of one year ago. Mills at Omaha and at 82
interior points in Missouri, Kansas, Oklahoma and
Nebraska showed a slight falling off in the activity
as compared with a year ago. The following shows
the output of flour, barrels, at mills reporting to the
Northwestern Miller tor four weeks ending February
26:
1921
Kansas City . . . . . . . . . . . . 301,380
Omaha . . . . . . . . . . . . . . . . . 49,457
82 Outside Mills. . . . . . . . . . 841,893
1920 Pct. Change
283,100
6.4%
75,605
-34.6%
1,176,373
-28.4%
Total Barrels ............ 1,192,730
1,535,078
-22.3%
Flour receipts in February at Kansas City were
48,100 barrels and shipments 250,250 barrels. In February, 1920, receipts were 68,900 barrels and shipments
243,750 barrels.
LIVE STOCK.
The reports from the farms' and ranges over the
Tenth Federal ~eserve District say that all classes of
live stock are generally in good healthy condition due
to the mild open winter and a plentiful supply of feed.
Cattle are doing exceptionally well although in New
. Mexico at the end of February they were beginning
to show the effect of scanty pasture resulting from
dry weather conditions. Losses from disease have
been light. On account of the highly favorable weather conditions the spring calf crop is expected to be
·
high. Very few cases of cholera are reported among
hogs and there is noticeably less vaccination of hogs
than usual in some places. Conditions have been favorable for a good lambing season.
Active demand from eastern shippers at the leading western markets, and Pacific Coast shippers in the
same markets, combined to lessen to a considerable
extent the supply of hogs available at those market
centers for local slaughter. On March 7 the top price
of hogs at Kansas City was $10.60, showing an average
price of $9.86 and an average weight of 236 pound~.
At Omaha the top price on the same day was $10.25,
average price $9.80 and average weight 254 pounds.
The tendency to put heavy weight on hogs as a resuit of the abundant supply of corn has put a premium
on lighter weights. Following sharp advances during
the latter part of February lamb prices received a setback in the opening week of March with increased
receipts and slow eastern dressed meat trade. Matured sheep showed a relatively smaller decline than
lambs. Choice lambs at Kansas City sold for $8 .. 25
to $9.85 and at Omaha for $8.75 to $9.75.
RECEIPTS AND SHIPMENTS OF GRAIN (BUSHELS) AT AND FROM FOUR PRINCIPAL MARKETS IN THE
TENTH DISTRICT FOR THE MONTH OF FEBRUARY, 1921 AND 1920.
Receipts
Kansas City
St. Joseph
Four Markets
Omaha
Wichita
Feb., 1921 Feb., 1920 Feb., 1921 Feb., 1920
Feb.,1921 Feb.,1920 Feb.,1921 Feb.,1920 Feb.,1921 Feb.,1920
Wheat . . . .. 6,556,950
4.213,350
526,500 448,500 9,463,050 5,815,050
999,600
720,000
1,380,000 433,200
Corn . . .... 1,630,000
1,723,750
583,500 586,500 4,645,300 5,033,850
2,329,600
102,200 135,000
2,588,600
Oats .•.... 428,400
1,033,600
108,000 172,000
971,400 2,719,600
420,000
15,000 140,000
1,374,000
Rye ....... 30,800
1,400
81,700 183,600
67,100
49,500
126,500
Barley ..... 117,000
157,500
214,950 209,100
61,200
21,000
36,750
30.600
Kaffir ....• 463,100
721,600
19,500
497,600 721,600
15,opo
Shipments
Wheat . . ... 5,354,100
3,821,850
981,600
750,000 125,~00
207,000 144,000 7,292,700 4,867,850
776,400
Corn . . . . . . 416,250
646,250
1,481,200
391,500 235,500 2,376,950 2,808,150
1,888,600
88,000
37,800
Oats .•.... 504,000
712,500
610,000
72,000
34,000 1,201,000 2,236,500
1,380,000
15,000 110,000
Rye .. ..... 28,600
107,800
50,600
2,800
79,200
82,000 187,000
Barley ..... 75,400
84,500
70,200
18,000
5,250
21,600
150,850 124,100
Kaffir ••••• 211,000
285,000
15,000
226,000 285,000
THE MONTHLY REVIEW
6
Live Stock Markets.-The supply of cattle and
calve~ continues to fall below last year's receipts at
the market~ in this district although a greater number
of hogs was marketed in February than in January
and also in February a year ago. The run of sheep
at the markets has been heavy for this season and
but slightly below the supply of last year.
The receipts of ~attle, calves, hogs, sheep, horse:;
and mules at each market for the month of February,
with the totals for January, 1921, and February, 1920,
were as follows :
Cattle
Kansas City . . ... 110,044
Omaha • . . . . . . . . 93,395
St. Joseph ....... 39,035
Denver • . . . . . . . • 18,824
Oklahoma City . . 17,277
Wichita . . ....... 10,132
February, 1921 •. 288,707
January, 1921 .•. 406,904
February, 1920 . . 359,825
Horses &
Sheep Mule8
Hogs
Calves
3,180
-14,668 244,298 _ 142,989
670
4,407 326,486 184,639
82,450
1,567
4,979 178,250
94,857
950
39,259
1,825
784
129
29,710
1,706
363
898
29,606
1,685
29,270
36,599
33,151
847,609
777,551
648,939
506,082
509,252
520,918
7,394
5,997
29,099
Slightly higher prices were reported in the second
week of March for most classes of cattle and hogs.
Kansas City reported a beef steer top at $10.25, and
Omaha at $10.00. More Colorado pulpfed cattle are
being shipped to the Missouri River markets and some
of these reached $9.75 at Kansas City. Stockers and
feeders were in' v~ry active demand and prices approached levels which were close up to fed cattle,
farmers paying up to $9.00 at Kansas City for be3t
feeder steers.
·
Meat ·Packing Operations.-Purchases in Feoruary
of meat animals for slaughter by packers at the six
packing house · centers totaled 157,480 cattle, 22,574
calves, 641,193 hogs and 333,147 sheep. Compared
with packers' purchases in January these totals show
decreased purchases of 31.4% of cattle, 21.7% of
calves, 10.3% of sheep and an increase of 4% of hog',.
Compared with February of a year ago the purchases
for the month this year were 14.7% less of cattle and
22.4% less of calves, while purchases of hogs increased
34% and of sheep 13.6%. Figures on packers' pUI"chases for February follow:
Kansas City . . . . . . . . . . . .
Omaha .. ..............
St. Joseph . . . . . . . . . . . . . .
Denver .................
Oklahoma City .........
Wichita ................
Cattle
58,746
56,490
22,221
8,115
11,653
255
January, 1921 ........... 157,480
January, 1921 ........... 229,778
February, 1920 . . ........ 184,930
Sheep
Calves Hogs
13,721 183,132 119,958
1,916 243,608 129,384
4,509 148,435
66,217
1,067
35,740
16,795
1,072
26,484
781
289
3,794
12
22,574
28,846
29,102
641,193
616,444
478,476
333,147
371,332
293,357
PETROLEUM.
The second week of March brought a marked improvement in the situation in the mid-continent fielq.,
with every oil purchasing company in Oklahoma and
Kansas, with one exception, buying crude oil on a
lOOo/o basis. It is also noted that in the face of a slowing down of new development operations pending ·r eadjustment in the petroleum industry, production of
crude oil from wells in Kansas and Oklahoma has
been steadily increasing since the low point of production at the first of the year. The output of crude
oil in the two states was approximately 353,000 barrels daily during the first ten weeks of 1921. While
this average- is about 13% below the daily average
of last November, which was the month of peak production in 1920, it is considered exceptionally high for
the season. The ten weeks daily average compares
with 326,850 barrels as the daily average for the first
ten weeks of 1920 and 288,790 barrels as the daily average for the first ten weeks of 1919. All districts in
the two states during the period under review show a
high average, even with fewer wells than former1y.
The average number of barrels (42 gallons) of crude
oil produced daily during each reporting week this
year, and also for the corresponding weeks in the two
previous years, is shown in the following:
1921
Barrels
Daily Average Week Ending
January 7 ................. 344,000
January 14 ............... 347,000
January 21 .......•..•.... 349,000
January 28 • • .....•.•..•.. 352,000
February 4 • . ..•.•......... 352,500
February 11 ............... 350,500
February 18 • . •••.......... 354,500
February 25 • • ••........... 359,500
March 4 • . ..••............ 364,500
March 11 • . ...•............ 366,500
1920
Barrels
1919
Barrels
327,000
321,500
323,500
324,000
325,000
324,500
332,500
330,500
329,500
330,500
277,000
268,500
277,000
279,500
287,000
296,000
301,000
302,000
300,700
299,200
Daily average first 10 weeks .. 353,000
326,850
288,790
' The foregoing figures indicate a total production of
crude oil in the two states for the first seventy day5
of 1921 of 24,710,000 barrels, compared with 22,879,500
barrels for the same period last year, and 20,223,000
barrels for the same period two years ago. Production in the Rock Mountain fields, according to current
reports, is but slightly under the high daily ,average
of last autumn and is considerably ahead of the production at this time last year. The output in January
of 1,551,000 barrels was maintained through February.
The current reports show that in the month of February, immediately following the big break in oil
prices, there was a noticeable falling off in the number of wells completed and daily new production as
compared with the record of development operations
in January. The following shows the number of well3
completed and the total barrels of daily new produc-
RANGE OF PRICES AT KANSAS CITY OF CERTAIN GRADES OF LIVE STOCK
Beef Steers
Butcher Cattle
Feeder Steers Stocker Cattle
Hogs
Good-Choice
Com.-Choice
Com.-Choice
Com.-Choice
Bulk Sales
February 15 ; ............ $8.25@ 9.40
$4.50@7.65
$6.50@8.15
$3.75@7.00
$8.75@ 9.50
February 21 •............ 8.40@ 9.60
4.50@8.00
. 6.75@8.35
3.75@8.00
8.75@ 9.25
March 1 .•....•........ 9.15@10.40
5.00@8.65
7.50@9.25
4.00@8.75
9.15@ 9.80
March 8 ............... 8.85@10.25
4.75@8.25
7.00@9.25
4.00@8.85
9.75@10.50
March 15 ••.•..........• 8.50@10.00
4.65@8.25
7.25@9.10
4.50@8.85
9,70@10.50
Lambs
Med.-Choice $5.85@ 8.10
6.75@ 9.25
8.00@10.75
7.00@ 9.85
7.50@10.00
THE MONTHLY REVIEW
tion for the months of January and February tn the
stat~s of Kansas, Oklahoma and Wyoming, and also
for the corresponding two months in 1920 and 1919:
Wells Completed Bbls. Daily New Production
January&February
January&February
1921 1920 1919
1921
1920
1919
Kansas . . . . . . . 341 366 477
23,313 32,066 18,706
Oklahoma . . • .1,414 1,021 1,137
112,206 71,843 80,161
Wyoming . . . . 63
34
34
6,438
2,914
3,255
Two months . .1,818 1,421 1,618
141,957 106,823 102,122
At the end of February rigs and wells drilling in
the three states numbered 2,624, which was 261 wells
less than reported at the end of January. Kansas reported a loss of 23 and Oklahoma a loss of 262, while
Wyoming reported an increase of 24. The figure .:;
for the three states on wells drilling at the end of February and also at the end of January for the years
1921, 1920 and 1919 are given:
1921
Kansas .. ..................... 376
Oklahoma . . . ................ . 1,616
Wyoming . . . . . . . . . . . . . . . . . . . . 632
1920
484
1,952
570
1,427
274
Three States
February . . .................. 2,624
Three States
January . . ...........•........ 2,885
3,006
2,195
2,980
2,352
1919
494
The noticeable falling off of drilling operations in
February as compared with drilling operations in January is attributed largely to many operators pursuing a policy of confining development operations almost entirely to offsets pending the readjustment
which is taking place in the oil industry. The reports
indicate that the drilling of many new wells has bee:i
stopped at top of sand and even at depths far above
sand levels, while noticeably fewer new wells are reported as being started. This condition was described
by operators as being merely temporary, in view of
the fact that the extremely mild weather of the ' past
sixty days is bringing improvement in the market
situation.
Mid-continent crude oil in the first half of March
held steady at $1.75 per barrel, which figure was
reached February 9 after a series of drops from the
high price of $3.50 per barrel which started January
24. The price of crude oil in the various fields of
Wyoming ,which was quoted at $2.60 down to $1.80
per barrel January 5, dropped an average of 85c per
barrel and quoted March 11 at $1.75 down to $1.40
for the products of all fields except Mule Creek and
Lander. which were quoted at 95c and 90c per barrel.
MINING.
Coal.-The rate of production of soft coal at the
mines of this district which slumped considerably during January showed further declines through February
and to this date in March. The reports indicate an
average of capacity operation during February of
55.3% in Colorado and Wyoming, 50.7% in Kansas,
65.3% in Missouri and 56% in Oklahoma, with an average of 56.8% of capacity operation for the four
states.
The statement of the United States Geological Survey, Department of the Interior, as of March 5, shows
that the weekly production of soft coal was lower than
at any time during the past four years except duringthe coal strike of 1919. Production of bituminous coal
1
during the first 279 days of the past four coal years
was given in net tons as follows :
1917-18 ............................ 499,655,000
1918-19 ............................ 515~364,000
1919-20 ........................... .437,596,000
1920-21 ............................ 490,512,000
Taking the reports from the coal states of this district, it will be seen that the losses in production from
capacity operation have been largely a matter of "no
market," while strikes were an important factor in
bringing the capacity operation in Kansas below that
of other states. In the mountain states, particularly in
the Routt County field of Colorado, serious losses wer~
due to transportation disability which appears to have
been caused by heavy snows and adverse weather conditions. The various causes for the loss in capacity
operation are here shown for the four states, based
on reports for weeks ending February 5, 12 and 19:
Colo. Kans. Mo.
Okla.
Transportation Disability .. 13.6%
.2% 1.0% 1.6%
Labor Shortage . . . . . . . . . . . . . 4.0% 1.6% 2.6%
Strikes . . . . . . . . . . . . . . . . . . . . . 16.1 % 1.2%
Mine ·Disability .......... 1.7% 6.0% 4.2%
.9%
No Market ............. . 29.3% 22.9% 26.9% 39.2%
Dist.
Ave.
4.1 %
2.0%
4.3%
3.2%
27.1 %
There has been little demand for domestic coal on
account of the warm weather prevailing, while at the
same time the demand for coal for steam plants was
below normal and had much to do with the slowing
down of operation because of "no market."
Lead and Zinc.-The month of February represented the lowest ebb reached by the zinc industry in a
period reckoned by decades. The average price paid
for zinc all during the month for all grades was $22.78
as compared with $51.21 one year ago. Shipments of
zinc ores dropped to 23,476 tons for the month, an
average of 5,869 tons per week. This compares with
12,614 tons per week one year ago, a decline in shipments of more than 50% and a price decline of ap:::.
proximately 60%. Thirty-eight mills were in operation in February as compared with 200 in operation
one year ago, while labor employed dropped from 10,000 one year ago to 2,000 in February. Wages have
declined 30% to 50%. There is no parallel in the history of the industry with which to compare present
conditions, yet in the face of all these facts there has
been an optimistic attitude and the spirit of industry
remains undaunted.
In the bins of the producers there now is 55,000
tons of zinc ore which on the basis of the pre ent
prices for selling is approximately 50% below a normal
price over a period of many years. As a result of
these low prices there is considerable buying of zinc
ores by the speculative class. This is relieving some
of the mine companies to a very great extent and re•·
moving the carry ch9.rges from the industry to the
hands of the speculators, but so far as can be _seen
at present this has not the effect of strengthening the
market for zinc ores.
The lead ore market, following the trend of pig lead,
dropped to $32.00 the last week of February, a cut
of $13.00 per ton from the opening market at the beginning of the month and establishing a new low level
for lead ores. This was a blow to the mining industry,
especially among that class of mines which produce
8
THE MONTHLY REVIEW
considerable tonnage of lead ores as a by-product.
The higher prices paid have been a saving factor for
that class of properties and this cut in prices is reducing the operation of mines of this character.. There
was also an increase in the amount of surplus stock
on hand among this class of ores, the amount rising
to 600 ions of lead ores at the end of the month. The
shipment of lead ores for the month aggregated 5,295
tons, a weekly average of 1,224 tons at an average
price of $41.30.
The Ontario Smelting Company announced the reopening of its plant on a daily schedule of four days
per week and announced to its workmen that it would
continue operations on that scale until its surplus
stocks of ores had been turned to pig lead, at which
time there would be further announcement as to the
activity of the concern.
Statement of C,onclition
FEDERAL RESERVE BANK OF KANSAS CITY
Including Branches
RESOURCES
At Close of Business
March 18, 1921
Gold Coin and Certificates ................... $ 2,502,321.22
Gold Settlement Fund F. R. Board............ 30,865,293.25
Gold with Federal Reserve Agent. . . . . . . . . . . . 38,156,390.00
Gold Redemption Fund . . . . . . . . . . . . . . . . . . . . .
4,448,884.75
Legal Tender Notes, Silver, etc...............
3,200,942.70
Bills Discounted:
Secured by Govt. Obligations .. ......... . 35,178,789.28
All Other ................. . ........ .. . 64,540,641.24
239,300.00
Bills Bought in Open Market ........... .... .
8,867,850.00
U. S. Govt. Bonds . ..................... ... .
U. S. Cert. of Indebtedness ................. . 10,672,500.00
Bank Premises . . . .......................... 1,742,383.24
. 5% Redemption Fund Against F. R. Bank
915,590.00
Notes ............................... .
158,400.00
Gold Abroad in Custody or in Transit ....... .
Uncollected Items . . . ..................... . 53,111,853.71
524,721.65
All Other Resources . . ..... .. ........... .. .
Total Resources . . ........................ $255,125,861.04
LIABILITIES
Capital Paid In ............................. $ 4,487,950.00
Surplus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9,158,814.24
Government Deposits . . . . . . . . . . . . . . . . . . . . . . 12,245,226.40
Due to Members, Reserve Account........... 72,765 .007.93
Other Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,297,906.51
F. R. Notes in Actual Circulation............ 96,977,325.00
F. R. Bank Notes in Actual Circulation...... 11,747,000.00
Deferred Availability Items . . . . . . . . . . . . . . . . 44,112,647.12
All Other Liabilities. . . . . . . . . . . . . . . . . . . . . . . .
2,333,983.84
Total Liabilities . . ........................ $255,125,861.04
OTHER TOTALS
Total Gold Reserves . ...... ................. $ 75,972,889.22
Total Earning Assets. . . . . . . . . . . . . . . . . . . . . . . 119,499,080 52
Total Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86,308,140.84
Ratio of Total Reserves to Deposit and F~deral Reserve Notes Liabilities Combined. .
43.1 %
Ratio of Gold Reserve to Federal Reserve
Notes fa Actual Circulation after setting
aside 35% against Depogjt Liabilities....
50.4%
CLEARINGS
Total Clearings for Week ................ .. . $219 .398,428.61
Total Number of Items Handled. . . . . . . . . . . . .
1,356,938.00
Note-In order to reveal more truly the position of the
Reserve Banks the statement has been sU ghtly recast in
form, the main chang-e occ 1rring in the deposit block. Instead of total gross deposits the statement shows total deposits which are made up of the following items: Government deposits, due to memb r~, reserve account and other
deposits, including- fo eis;m government credits. R~serve ratios have been calculated in the same manner as heretofore
except that instead of net deposits total deposits as described
above have been used in the calculation.
Colorado Metal Mines.-Metal mining in Colorado
continues very quiet on account of the low prices oi
base metals and high mining cost.
The curtailment of operations in the base metal
camps has, however, caused some little improvement
in conditions at Cripple Creek, which is strictly a goldproducing district.
At a hearing held by the Industrial Commission regarding the reduction in wages in the metal mines il
was brought out that the number of men now employed in the mines is approximately 4,000 as against
10,000, which is considered a normal figure.
BUILDING.
The February building returns to the Monthly Review from the principal cities of the Tenth Federal
Reserve District denote some improvement in activity.
The number of permits granted in that month iu
16 cities of this district was 1,352, which is 526 more
than the number of building permits granted in January of this year and 78 less than the number of buiiding permits granted in February, 1920. While the estimated cost of buildfogs indicated by the February reports is 17.4% below the estimated cost in January for
the same cities and 56.3 below the estimated cost in
February,, 1920, there is indicated by the larger number of permits issued in February a greater contemplated activity at this time. It is observed that the
February reports show an average of $2,050 as the estimated cost of the buildings authorized to be construced, which is taken as evidence that more attention was given to the building of residences and that
fewer permits were issued for large buildings, business
houses and additions to manufacturing plants. It is
noted that four of the sixteen cities reported increase
in the estimated cost of buildings for February over
the same month last year, these four being Leavenworth, Joplin, Pueblo and Kansas City, Kansas. The
reports for these cities on permits issued in February
follow:
Permits Estimated Value
Tulsa, Okla. . .......... .
Kansas City, Mo......... .
Denver, Colo. . . ........ .
Wichita, Kans .......... .
Okmulgee, Okla••.......
Omaha, Nebr. . . ........ .
Kansas Cjty, Kans ....... .
Pueblo, Colo. . ......... .
St. Joseph, Mo .. ........ .
Topeka, Kans. . ....... .
Lincoln, Nebr.......... ..
Colorado Springs, Colo ... .
Joplin, Mo............. .
Leavenworth, Kans. . . .. .
Muskogee, Okla........ .
Cheyenne, Wyo. . ...... .
171
311
274
159
$ 644,160
11
8
598,850
506,250
262,340
219,850
179,620
89,505
66,593
44,300
40,367
28,325
26,013
27,185
17,000
15,310
5,900
Total Feb., 1921. ......•. 1,352
Total Feb., 1920 ........ 1,430
$2,771,558
6,339,545
44
67
55
77
46
43
23
46
14
3
Change
Pct.
-72.1
-6.4
-38.9
-52.6
-24.8
-83.6
.02
153.8
-13.6
-27.5
-77.3
-74.7
230.6
240.0
-87.6
-61.2
-56.3
While the foregoing figures show encouraging
symptoms of increasing activity in the erection of
homes, it is to be seen that even greater activity i~
sorely needed, and that there is apparently no limit t0
the amount of building of that class actually required
for the present and the immediate future. There are
apparent evidences of substantial recesses in prices of
materials which are an encouragement to the larger
activity in building, although the wages of the building trades have not come down materially.
@FedFRASER