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THE MONTHLY REVIEW
Covering Conditions tn the Tenth Federal 'R.!Jerve 'Di.rtrict
Federal Reserve Bank of Kansas City
FoR THE INFORMATION OF MEMBER BANKS AND Bus1NESS INTERESTS o:r THIS DISTRICT
Au E.
Chairman Board of Dirttlors
and Federal Reseroe Agml
VoL. 8 No. 3
KANSAS CITY, Mo.,
THE SITUATION AT A GLANCE
HIGH POINTS IN THE STATISTICAL RECORD OF THE
,r
C. K.
RAMSAY,
TENTH FEDE RAL RESERVE DISTRICT.
Business, measured by debits by banks to accounts
of customers in 26 cities, 4 weeks ending March 7,
$1,120,260,000; increase over corresponding period
last year $149,338,000, or 15.4% .
,r Building Permits in 19 cities, month of February,
2,072 and estimated cost $7,343,638; increase 240
permits and $2,888 .,437, or 64.8% in cost. First 2
months of 1923, permits 4,484 and estimated cost
$14,701,644; increase over first two months last year
1,259 permits and $5,092,325 or 53% estimated cost.
,r Coal Mine Operations in 6 states during February,
51.8% of capacity; in February last year 58.2% of
capacity.
1 Commer ial Failures, Tenth District, during February 89 and liabilities $1,154,384; decrease from
one year ago 10 failures and $85'2,096 or 42.4% in
liabilities.
1 Crude Oil Production in 4 States during February,
daily average 587,329 barrels and month's total
16,445,200 barrels. February, 1922, daily average
498,964 barrels and total for month 13,971 ,000 barrels. Increase daily average 88,356 barrels and
month's total 2,474,200 barrels.
,r Grain Receipts at 4 markets, February; wheat
7,476,450 bushels, corn 5,757,200 bushels, oats
2,136,100 bushels. Decrease from February last
year: wheat 4,750,650 bushels, corn 797,850 bushels.
Increase:--oats 470,800 bushels.
1 Flour Production at Southwestern Mills in February 1,431,259 barrels. Decrease from a year ago
67,554 barrels, or 4.5% .
1 Live Stock Receipts, at 6 markets in February:
cattle 370,474, calves 50,112, hogs 990,990, sheep
576,389, horses and mules 10,451. Increase: Cattle
10,879, calves 9,366, hogs 236,910, sheep 95,128,
horses and mules 2,810.
,r Meat Packing at 6 centers in February: cattle
204,524, calves 36,556, hogs 778,473, sheep 334,648.
Increase: cattle 33,961, calves 12,351 , hogs 203,384,
sheep 84,014. Highest February record since 1919.
~ Lead Ore Shipments in Missouri, Kansas and Oklahoma, in February 7,077 tons, average price $109.34
per ton. Same month last year 7,806 tons, average
price $60 per ton.
~ Zinc Ore Shipments in Missouri, Kansas and Oklahoma in February 57,425 tons, average price $42.5 5
per ton. February last year 27,000 tons, average
price 1,25.06 per ton.
BoA.RDMAN,
March 26, 19'.l.J
Assistant Ftderal Resm,1 Agent
and Secretary
nus COPY a.&LE.AHD roa. PUBLICATIOK 1• woa.•INO PA.Pita.I
MAR. 31
E
XPANSION in nearly every branch of trade and industry
in the Tenth Federal Reserve District is evidenced by
the reports presented in the March issue of the Monthly Review. Distribution of merchandise by wholesalers and jobbers
in recent weeks has been in line with the heavy volume of trade
which featured the first month of 1923. Sales by wholesalers
are now well ahead of those of last year. Retail trade reports
reflect increased buying by the people in city, town and country
as compared with one and two years ago. Factories are
operating a high percentage of capacity. New high February
records in live stock receipts and in meat packing have been
established. Grain market movements have slackened and flour
production is about the same as was recorded for the corresponding period in 1922. The crude oil output was more than 88,ooo
barrels per day ahead of last year. Soft coal mines are operating
at about the same capacity as a year ago, and a high rate of
activity in lead and zinc mining is maintained. Building for the
year to the date of this issue has registered a new high record for
cities of this District, while public work and other forms of
construction are proceeding at an exceptionally high rate of
activity. Labor generally is well employed.
In addition to this highly encouraging situation th~ March
reports tell of rains and snows of varying depths over practically
every section of the District, breaking the long drought in dry
sections and providing moisture to give spring crops and pastures
a good start-thus brightening the prospects for agriculture and
live stock, the paramount industries of the District; but severely
cold weather late in March has injured some oi the early planted
crops and some fruit damage is reported, though the damage is
as yet unestimated.
The expanded business is having a quickening influence on
banking activities. Loans and discounts' of banks throughout
the District have taken an upturn. Combined statements of
seventy-eight selected Member Banks March 7 show an aggregate of $449,613 ,000 of loans and discounts, a high mark for
1923 and an increase of $5,003,000 in four weeks. Investments
of these Member Banks, amounting to $148,416,000, were around
the high level for this year. Deposits were the largest of record
for the seventy-eight Member Banks, the combined total on
March 7 reaching $595,117,000.
The weekly reports of the Federal Reserve Bank of Kansas
City during March show increased use of its credit facilities.
Total bills discounted and held March 21 aggregated $28,112,004.12, which was $10,339,730.99 above the total four weeks previous to that date. Gold reserves were: f,91,742,550.32, a decrease of $3,896,696.16 from February 21.
Member ahd Non-Member Banks subscribed approximately
$22,000,000 of the $400,000,000 March I 5 issue of United States
Treasury Certificates of Indebtedness through the Fiscal Agency
department of the Federal Reserve Bank of Kansas City. The
quota for the District was $16,000,000.
SURVEY OF CREDIT CONDITIONS IN THE UNITED STATES ON PAGES:7 AND 8
THE MONTHLY REVIEW
I.
2.
3.
4•
5.
6.
7.
8.
9·
CONDITION OF 78 SELECTED MEMBER BANKS IN
TENTH FEDERAL RESERVE DISTRICT
M ar. 7, 1823 Feb. 7, 1923
Loans and Discounts (including rediscounts:)
(a) Secured by U. S. Govt. Obligations . . • 'I,
8,238,000 'I,
8,552,000
(b) Secured by stocks and bonds, other than
U.S. Bonds . . ....••.. .. .. ... ........
80,090,000
77,018,000
(c) All Other .. ... .. . .• . • . ..... . .... . •. . 361,285,000
359,040,000
Investments:
(a) U. S. pre-war Bonds . . . . .............
11 ,973,000
12,077,000
(b) U. S. Liberty Bonds . .. . .. . ..•.. . ....
46,639,000
46,533,000
(c) U. S. Treasury Bonds . . . . . .••. . ......
4,668,000
3,871,000
(d) U. S. Victory Notes and Treasury Notes.
21,512,000
21,392,000
(e) U. S. Certificates of Indebtedness ... ...
5,798,ooo
5,995,000
(f} Other Bonds, Stocks and Securities . . ..
58,442,000
59,472,000
Total Loans and D iscounts, and Investments. 598,029,000
594,566,000
Reserve Balances with F. R. Bank ........ .
49,446,000
49,215,000
Cash in vault . .. .... .. .. .. ... ... . .. • . ....
11,788,000
11,719,000
Net Demand Deposits on which Reserve is
computed . .. . . .. . . • . . . . . . ... .. ... ... . .. . 470,137,000
459,775,000
Time Deposits ... . .. . ... . ... .. .. .... . • •.. 123,899,000
125,358,000
Government Deposits .. . .... . ... .. ... .. ...
1,081,000
1,449,000
Bills Payable and Rediscounts with F. R.
Bank secured by:
(a) U.S. Govt. Obligations .... . ...... . . ..
2,086,000
4,323,000
(b) All Other ... .... ... . .. . .. .. .. . . ... ..
3,104,000
3,580,000
ToTAL (Items 3 to 9 inclusive) . ... . .... .... 'l,1,261,807,000 'l,1,247,748,000
Savings Deposits
Sixty-six banks in the leading cities of the Tenth District, by
their reports to the Federal Reserve Bank of Kansas City, showed
an aggregate of $101,623,714 of deposits in savings accounts
March 1, 1923. This total indicates an increase of $266,315 or
0.3% over February I of this year, and an increase of$13,004,760
or 14.6% over March 1, 1922. The reports by cities follow:
Mar. 1, 1923 . Feb.
Denver, Colorado . .. . . ... .
Kansas City, Kansas ... .. .
Kansas City, Missouri ....
Lincoln, Nebraska ..... . . .
Oklahoma City, Okla . . ....
Omaha, Nebraska ... . . ...
St. Joseph, Missouri .... ..
Tulsa, Oklahoma . . . . . .... .
Wichita, Kansas .... . ... . .
Outside . . .... . . . . . ..... .
IO
4
6
6
6
7
6
7
Amount
'I, 51,495,251
2,400,108
12,822,498
3,044,477
6,279,367
7,298,336
7,6o8,492
6,414,340
2,184,750
2,076,095
Total...................
66
'1,101,613,714
Banks
4 Weeks Ending
March 7, 1923
Atchison, Kansas . .. ..
'I,
5,522,000
Bartlesville, Oklahoma
n,284,000
Casper, Wyoming ...
13,873,000
Cheyenne, Wyoming . .
10,794,000
Colorado Springs, Colo.
10,854,000
Denver, Colorado ....
148,092,000
Enid, Oklahoma .. ....
12,225,000
Fremont, Nebraska . ..
4,722,000
Grand Island, Nebra ..
4,96o,ooo
Grand J unction, Colo..
2,283,000
Guthrie, Oklahoma .. .
3,024,000
Hutchinson, Kans.. .. .
12,236,000
Independence, Kans . .
9,005,000
Joplin, Missouri . .... .
13,850,000
Kansas City, Kans ....
15,066,000
Kansas City, Mo.. . ..
314,615,000
Lawrence, Kansas ....
3,963,000
McAlester, Okla. . ....
3,999,000
Muskogee, Okla•.... .
23,236,000
Oklahoma City, Okla . .
75,865,000
Okmulgee, Okla... . . .
8,946,000
Omaha, Nebraska . . . .
193,648,000
Parsons, Kansas . . .. . .
3,689,000
Pittsburg, Kansas . . . .
5,902,000
Pueblo, Colorado . .. ..
13,134,000
St.-Joseph; Missouri ..
62,915,000
Topeka, Kansas .. . . ..
15,392,000
Tulsa, Oklahoma . . .. .
99,187,000
Wichita, Kansas ..... .
44,531,000
4 Weeks Ending
March 8, 1922
'I, 4,985,ooo
8,890,000
9,5 1 5,000
Percent
Increase
I0.8
26.9
45.8
10,446,000
9,39 2,000
125,053,000
15.6
18.4
4,767,000
2,302,000
2,142,000
12,412,000
4.0
-o.8
41.2
-1.4
8,506,000
12,508,000
266,827,000
62.8
20.4
17·9
11.4
-8.2
3,557,000
3,702,000
23,123,000
70,535,000
3.3
0.5
7,99o,ooo
171,567,000
7.6
12,0
12.9
3,205,000
I 5.1
5,172.000
13,16o,ooo
14. I
-0.2
24.4
17. 1
13·5
II.I
50,589,000
13,140,000
87,372,000
40,o65,ooo
Total ......... .. . . ..
'l,1,146,212,000
'1,970,922,000
•15.4
•-Percentage computed on debits of 26 cities reporting in 1922 and 1923.
COLLE CTIONS are reported as having suffered in some
sections on account of weather conditions, although in other
quarters collections were reported quite satisfactory. The departmen t store reports indicate the percentage of collections
during the month to outstandings as 46. 5% as compared with
46.6% in February, 1922.
'1,101,357,399 'l,88,618,954
The records of 56 banks showed 301,847 savings accounts on
their books March I, a decrease of 2,004 from the total on February I. Compared with March 1, 1922, there was an increase of
28,999 or 10.6% in the number of savings accounts.
Bank Debits
General business in cities of the Tenth District, as measured
by debits by banks to the accounts of their customers, increased
15.4% in a 4-weeks period ending March 7, over the corresponding 4 weeks last year. Debits reported by the clearing houses in
29 cities for the period under review, together with the debits
of 26 cities for the period last year, are shown herewith:
4
IO
1, 1923 Marchx,1912
Amount
Amount
$ 51,53o,249 'l,44,778,nS
2,402,984
2,275,439
12,742,985 II,800,350
1,726,291
3,009,363
4,679,058
6,071,753
7,082,215
7, 275,296
6,744,571
7,477,474
5,313,630
6,595,24 2
2,220,684
1,498,392
2,031,369 • 1,720,890
Business Failures
The record of business mortality in the United States for the
month of February, 1923, shows a decrease of 618 or 29% in the
number of failures and a decrease of $8,582,558 or 17.4% in the
amount of liabilities from the totals recorded for January, 1923.
The February, 1923, totals were a1so far below those of the corresponding month in 1922, indicating a decrease of 823 or 35.3%
in the number of failures and $31,980,454 or 44% in the amount
of liabilities.
The February record for the Tenth District showed 8 more
failures than were reported for January, but the amount of
liabilities was $336,930 or 22.5% less than in January. Compared with February, 1922, the totals for February of this year
show a decrease of 10 failures and a decrease of $852,096 or
42.4 % in liabilities.
The following compilation by Dun's shows the number and
liabilities for February, 1923, together with the figures for February, 1922, for comparison:
Districts
Feb.
First (Boston) .......... .. .
Second (New York) .•......
Third (Philadelphia) ..... . .
Fourth (Cleveland} •.. . ....
Fifth (Richmond) ...... . ...
Sixth (Atlanta) ... . ........
Seventh (Chicago) .... . . .• .
Eighth (St. Louis) ..... ... .
Ninth (Minneapolis) .... . . .
TENTH (Kansas City) ... ..
Eleventh (Dallas) . ... . . . ...
Twelfth (San Francisco) . . . .
NUMBER
1923 Feb. 1922
2o6
150
262
300
58
93
235
121
tog
213
1 35
270
1 95
288
81
167
72
97
89
99
107
91
145
156
Total, United States .. . .... 1,508
2,331
LIABILITIES
Feb. 1912
Feb. 1923
'I, 4,637,721 'I, 6,235,171
8,883,288 24,202,858
2,436402
1,014,670
4,627,038
6,293,852
2,452,891
4,76t,744
4,029,704
5,33 1, 0 5°
3,081,365
7,876,931
1,008,734
4,653, 231
2,300,814
2,217,789
2,oo6,480
1,154,384
1,104,596
5,889,143
2,287,431
3,738,945
'l,40,627,939 'l,72,6o8,393
ACCEPTANCES: An increased demand for bankers acceptances is reported by banks in Kansas City, but there appears
to be a scarcity of bills. Two Kansas City banks held $1,989,800
of bills on March 10, based on wheat and flour. The Federal
Reserve Bank on that date held '$1,076,660 of bills based on
cotton, sheep skins, packing products, grain and sugar, practically all 90 day paper.
THE MONTHLY REVIEW
3
CONDITION OF RETAIL TRADE IN CITIES OF THE TENTH FEDERAL RESERVE DISTRICT DURING FEBRUARY, 1923
Based on Reports From 12 Department Stores
Kansas City
(J)
Percentage increase (or decrease) of net sales during February, 1923, ove net sales
during same month last year......................................•....•
Percentage increase (or decrease) of net sales from Jan. 1, 1923, to February 28, 1923,
over net sales during same period last year .. ............................ .
Percentage increase (or decrease) of stocks at close of February, 1923, over stocks
at close of same month last year ....................................... .
Percentage increase (or decrease) of stocks at close of February, 1923, over stocks
at close of January, 1923 ................................ • • . • .. • • • • • • • •
Percentage of average stocks (selling price) at close of each month this season (commencing with Jan. 1) to average monthly net sales (selling price) during the
same period ............................•..................•..........
Percentage of outstanding orders (cost) at close of February, 1923, to total purchases
(cost) during the calendar year 1922 .................•.•................
Percentage of collections during month of February, 1923, on amount of outstanding
accounts on January 31, 1923 ................................ • ...... • • •
Percentage of coJlections for same period last year ...............•••.•....••••••••
Denver
(J)
Outside
(6)
District
(12)
Dec. 1.6
Inc. 3.5
Inc.
5.7
Inc.
Inc.
6.1
Inc. 10.5
Inc.
1.8
Inc. 6.4
Dec. 4.4
Dec. 2.6
Inc.
1.5
Dec. 2.5
·Inc. 12.3
Inc.
8.I
Inc. 18.4
Inc. II.9
494· 1
571.3
633-4
546.7
7.7
12.4
9.3
9.6
54.7
35.6
35.3
46.4
47.4
46.5
46.6
54-7
4-S
Mercantile Trade
Building
Wholesale trade in all lines reported increased volume during
the month of February over the corresponding month last year.
There were also increases for February over January in sales of
groceries and furniture, while sales of dry goods, hardware,
millinery and drugs were slightly below those of the previous
month. The summary of February reports of sales and outstanding accounts is here given in percentages of increase or
decrease over January, 1923, and February, 1922:
Unprecedented activity in building in c1t1es throughout the
United States, and particularly in the Tenth Federal Reserve
District, is indicated by the number of building projects reported.
Although there were only 22 business days in February, the
permits issued in cities of the Di&trict for the month practically
duplicated those of January, besides establishing a new February
high record.
Sales
Stores
Feb. 1923
Compared
Re-
With
porting Jan. 1923
Dry Goods.......
3
-1.8
Groceries....... .
5
+26.6
Hardware.. ... .. 10
-5.8
Furniture. ..... ..
4
-f-2.7
Millinery . . . . . . . . 4
- 0.9
~rugs...........
3
-o.6
Feb. 1923
Compared
With
Outstanding Accounts
Feb.28,1923Feb.28,1923
Compared Compared
With
With
Feb. 1922 Jan. 31, 1923 Feb.28,1922
+16.5
+9.3
+16.7
+38.6
+ 36.5
+39.8
+22.0
+13.8
+ 17.8
+ 16.4
+1.5
+ 7.9
-7.6
+34.8
+4.1
+ 17.9
+3.1
+5.1
~ The most substantial evidence of improvement in the dry goods
L usiness, according to reports, is that retailers are now buying
'-1'all goods freely for shipment after July I. Practically no fall
_.orders were placed in the first quarter of 1922. The purchases of
=-u ll goods is now extending to all lines of textiles, including
'hosiery, underwear, sheep lined coats, sweaters, blankets and
•flannels.
--~ While hardware sales by wholesalers show an increase for the
season, it is reported that considerable business was booked in
·1 February which could not be shipped until March. Otherwise
February sales would have equalled those of January. Factories
: in some lines are slow in filling jobbers' orders and this has had a
~ tendency to curtail shipments.
The furniture trade is the heaviest for several months and
c....tlealers are somewhat handicapped by slow deliveries from facL.stories. The wholesale grocery trade during February showed a
w· emendous increase in buying by retailers over January and
'-also over a year ago. Sales of farm implements and machinery
are registering large increases over the season in the previous
two or three years.
RETAIL: Sales by retailers in cities and towns throughout
the Tenth District generally were larger than a year ago, though
falling slightly below January sales. The department store
figure for February sales is 3.5% increase over February, 1922,
and 6.4 % increase for January and February of this year over
the first two months of last year.
During the first two months of 1923, there were 4,484 permits
issued in 19 cities of the District for buildings estimated tb cost
$14,701,644, compared with 3,225 permits and $9,069,319 estimated cost during the first two months of last year. These
figures indicate an increase for the year to March I of 1,259
new buildings and $5,095,325, or 53%, in estimated cost.
The reports further show that the average cost per building
this year is running about $300 ahead of a year ago in the cities
of this District. The average cost for each building in January
and February of 1923 was $3,278.69, compared with an average
cost during January and February, 1922J of $2,979.00. The
reports further show a larger proportion than in any previous
year of homes and apartments to meet housing demands.
The building returns from cities of the District compare favorably with those of cities throughout the United States.
BUILDING PERMITS IN CITIES OF THE TENTH DISTRICT
February, 1923
Permits
Value
Casper, Wyoming .... 77
t, 198,6oo
Cheyenne, Wyoming.
Colorado Springs . ...
Denver, Colorado ....
Hutchinson, Kansas ..
Joplin, Missouri .....
Kansas City, Kansas.
Kansas City, Mo .....
Leavenworth, Kans ...
Lincoln, Nebra .......
Muskogee, Okla......
Okmulgee, Okla......
Oklahoma City, Okla.
Omaha, Nebra•......
Pueblo, Colorado ....
St. Joseph, Mo .......
Topeka, Kansas .....
Tulsa, Oklahoma ....
Wichita, Kansas .....
36
63
362
37
6
90
34 1
3
56
38
22
169
244
48
52
84
146
198
Total, 19 Cities, Feb .. 2,072
Total, 19 Cities, Year
to Date ........... 4,484
37,975
143,930
1,024,800
56,120
7,600
233,76o
1,676,950
15,000
126,435
I 18,020
61,750
February, 1922
%
Permits
Value
Increase
21
t, 44,200 349.3
21
18.5
3i,985
91·9
74
75,01 5
353
657,75o
55.8
145.2
4
22,890
2,725
11 3,275
1,034,450
6,800
49
615,550
-'79•5
9.8
17·3
24
7
62
375
22
178.9
106.3
62.1
120.6
80,210
126,730
669,385
50
107,450
52,650
317, 255
470,685
71,246
58,090
41
70,540
125
505,426
237
346,160
356,485
f, 7,343,638
1,832
f,4,455,201
64.8
f,14,701,644
3,225
f,9,6o9,319
53.o
655,o94
1,564,325
41,528
21
161
119
66
106.5
232.3
-4 1.7
38.1
79.7
93.4
41.8
4
THE MONTHLY REVIEW
FARM STOCKS OF WHEAT, CORN AND OATS (BUSHELS)
Co1N
WHEAT
.
Mar. 1, 1923
Colorado. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,484,000
Nebraska ...... . .. ... . . .. . . . ............ . .. .... .. . . . ..... 11,369,000
Oklahoma ........ ·~. ......... .. ... . ... . ..... .. ... .. .. . .. 2,508,000
Wyoming........... . . . ..... . . .. . . ..... . ...... .. . .. ... . ..
587,000
Mar. 1, 1922
4,183,000
18,017,000
5,232,000
10,778,000
6,152,000
862,000
Six States . . ....... . . . ..... ... ......... .... . . . . ... 44,255,000
United States . .... . ....... . .... . .... . .. .. . . ...... I 53,134,000
45,224,000
134,253,000
~:s:a:;{ ·.: :::::::::::::::'. :::::::::::·::::::::::::::::::2~~!~:=
OATS
Mar. 1, 1923
Mar. 1, 1922
6,412,000
. ', 6,072,000
29,517,000 : : r37,732,000
58,574,000
69,494,000
62,016,000
108,021,000
14,400,000
~. 30,371,000
468,000
234,000
Mar, 1, 1923
1,203,000
6,245,000
4,574,000
17,393,000
5,40Q,OOO
,1,264,000
Mar. 1, 1922
3,027,000
13,201,000
15,895,ooo
35,02 7,000
12,400,000
2,020,000
171,387,000
1,087,410,000
36,079,000
421,5u,ooo
81,570,000
4II,934,ooo
251,924,000
1,305,559,000
Agriculture
Seeding of cats began in Missouri early in March and was also
under way in Oklahoma and southern Kansas when the heavy
The crop outlook in the District has greatly improved in the storms of rain and snow March 10-12 interfered. With such
last thirty days. Precipitation of rain and snow in March was feeding operations as were carried on during the winter the
sufficient to thoroughly soak the soil over practically the entire reports indicate that there is contemplated a larger acreage of
District. There is a strip varying in width from 200 to 300 miles · corn this year. The expressed intention of farmers in the southern
of the upper Great Plains area extending! southward through sections would also indicate a decided increase in cotton acrewestern Nebraska, Kansas and Oklahoma, through the Texas age.
Panhandle, and also covering parts of eastern Colorado, WyoIdeal _soil conditions. .throughout the ir11igated sugar beet disming and New Mexico, where there had been little rain or snow
tricts of Colorado, Wyoming, western Nebraska and western
fqr several months. The precipitation in March over this territory was sufficient to break the long drought and revive pastures, Kansas are exfected to result in an increase in the acreage of
sugar beets this year although contracts for this year's acreage
but more moisture will be needed to assure a good crop year.
have not been signed. Growers in Colorado, Wyoming and
The .blizzard and severely cold weather March 17-20 was damNebraska, according to announcement, are to receive '/,1 ,addiaging to some of the early planted crops, particularly in southern
section~, though the extent of the damage will not be known tional per ton for the 1922 beet crop grown under the sliding
scale contract.
f~r several d~ys.
The 1923 potato acreage, particularly in the large producing
J Fall. sown grains came through the winter in much better sections of western Nebraska, and in Wyoming and Colorado,
condition than was anticipated, after the long period of un- is somewhat uncertain because of the unsatisfactory experiences
seaso_n~bty warm and dry weather with little or no protecting of growers in the past season. A large proportion of the crop was
snow covering during the first eight to ten weeks of winter. not harvested, or was fed to live stock, on account of the low
Some· damage to wheat resulted from freezing and thawing price of potatoes and the high transportation rates. The Wyodur'ing .the cold weather which came late in February. Over the ming report, as an example, indicates that 1,265,000 bushels
'larg~! ~heat area of the Distri~t t~e reports indicate a _condi: or 50% of the 1922 crop of potatoes grown in that state last year
tion slightly _better than at this time last year. In Missouri were still in growers' hands on March I. In Missouri but I 5%
.w heat -was reported as 82% of normal condition on March 1 of last year's crop is in farmers' hands for food and seed, and
against 80% one year ago with soil condition 92% against 89% potatoes are being shipped in generally.
,
9~e year, ago. The condition of wheat in eastern Kansas, NebraFruit prospects in the Missouri valley and in Oklahoma were
ska. ~-nd Oklahoma on March 1 was generally above normal for reported good up to the time of the cold weather March 17.
-tJiis time of the year. In the dry regions farther west it could not The freeze damaged the peach, plum and early pear crop, ac~e 9etermined what percentage of the wheat sown last fall cording to reports, but to what extent is not yet known.
would .revive in the early spring, as it has frequently done in
The Missouri farm outlook has steadily improved from month
times past after lying dormant during the winter.
to month, according to March returns received by the FederalThe winter wheat area sown in the states of this District last State Crop Reporting Service. While farm labor is high, farmers
fall was approximately 24,200,000 acres which was 1,346,000 .are handling their land with as little expense ..as . p_o~stb,l~. . 4
acres below the acreage sown in the fall of 1921. The official very general farm expression is that conditions are brighter and
reports of the government on the growing condition of the wheat much better than a year ago. Farmers are showing more "pep"
are to be issued in April, although the abandoned acreage can- and are approaching spring work with courage.
not be ascertained until the May reports are received.
Grain Movements
,. Generally the reports indicate that the soil is in fine condition·
More late fall and winter plowing has been done than usual on
Arrivals of all classes of grain during February at Kansas City,
account of the mild open winter and farm work is well advanced. Omaha, St. Joseph and Wichita were in greatly reduced volume
The exceptional weather conditions which permitted farmers as compared with arrivals in January, and, with the exception
to work in their fields all through the winter is expected to result of oats and rye, which showed increases, were also considerably
n an increased acreage of spring planted crops.
below arrivals during February of last year.
RECEIPTS OF GRAIN AT FOUR MARKETS OF TENTH FEDERAL RESERVE DISTRICT, FEBRUARY, 1923
Wheat
Corn
Oats
Rye
Barley
Kansas City . ..... . ..... . .... . .... . ..... ... . ... . . . . .... .. .. . .... 4,059,450
1,892,500
88o,6oo
11,000
22,500
.Omaha ..................... .. .. .. ... .. ... . , . .. . ............ . .. . 1,654,800
2,6o2 16oo
1,028,000
186,200
43,200
·st. Joseph. . • . . . • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 625,800
1,1141500
202,000
1,750
Wichita ..........•........ . ........... . ........ . ....... . .. ... . . 1,136,400
147,6oo
25,500
4,800
7,200
Feb. 1923 ...•..•......... . ...... . ... . .......•. ... .. . . .. . 7,476,450
~923 .•...•••. _•.•..•.....•.......•.•...•......•. . ... 11,828,700
Feb. 1922 ..•....••...•••..•. • ..............•......••... . 12,227,100
Jan.
5,757,200
7,109,100
6,555,o5o
2,136,100
2,988,000
1,665,300
202,000
318,200
174,500
74,650
211,100
221,700
Kafir
233,200
3,000
9,6oo
245,800
457,100
538,000
THE MONTHLY REVIEW
The receipts of wheat at these four markets, 7,476,450 bushels
for the month of February, were 36.8% below the January receipts and 38.8% below the receipts for February, 1922. In
fact, the February receipts of wheat were the smallest for any
month since April, 1922. It is also of record that the receipts at
the four markets during the eight months of the current wheat
year which began July 1, 1922, aggregated n7,336,400 bushels,
This was 17,704,500 bushels or 13.1% less than the receipts for
the corresponding eight months of the previous wheat year.
There has been considerable competition for higher grades of
milling wheat, but a preponderance of wheat of inferior grade has
not tended to attract buyers, especially when export demands
have been light.
Receipts of corn during February, 5,757,200 bushels, were
1,351,900 bushels less than the January receipts and 797,850
bushels less than the receipts in February, 1922.
The receipts of oats, 2,136,100 bushels, fell below the January
total by 851,900 bushels, but were 470,800 bushels more than
were received in February of last year.
Receipts of rye declined 36. 5% from the January v.olume but
exceeded that of a year ago by 15.8%. Receipts of barley in
February showed a decrease of 64.6% from the January total and
a decrease of 66.3% from the total one year ago. Kafir receipts
were very light, being 46.2% below the previous month and
54.3% below the corresponding month last year.
FLOUR MILLING: Operations at the mills of the Southwest
during the month of February were on a basis of 55.3% of
capacity with a total of 1,431,259 barrels of flour produced.
This total is 201,336 barrels or 12.3% below production during
January, 1923, and 67,554 barrels or 4.5% less than total pr0duction in February, 1922, when the mills were operated at
62.8% of capacity. A summary of the reports of operation at the
principal milling cities and also at interior mills, representing
in all about 70% of the total flour production of the Southwest,
is shown in the following compilation from the Northwestern
Miller's reports:
Pct. Capacity
Operated
Kansas City .. . ..... ... . .... .. . ..... ... . . ..... .. 65.5%
~;: ;~_::::::::::::::::: :::::::::::: : ::: m
Wichita ... ..................... . .......... . .... 46.0
Outside . . .. . .... . .................... . ......... 51.3
Total, February, 1923 . ... . . . ... . ..... .. ....... .. 55.3%
Total, January, 1923 . .. . .. . ... . .... .... ..... . .. . 56.0
Total, February, 1922 . .......................... 62.8
Production
Barre18
348,324
88,562
94,030
88,746
II8,85S
692,742
1,431,259
1,632,595
1,498,813
Mills reported a fair volume of business in the forepart of
February, but during the latter part of the month the flour trade
was far from satisfactory to most of the millers. The first week
in March brought some improvement in the booking of orders,
though export trade was light.
Shipment of flour from Kansas City reported for the month
were 404,950 barrels, compared with 427,375 barrels in February, 1922. Receipts were 53,625 barrels against 95,550 a year
ago.
GRAIN ON FARMS: Reports of the Bureau of Agricultural
Economics, United States Department of Agriculture, show that
44,255,000 bushels or 15.8% of the 277,337,000 bushels of wheat
produced in Colorado, Kansas, Missouri, Nebraska, Oklahoma
and Wyoming last year were still on farms March 1, 1923.
The reports also show total farm stocks of corn aggregating
171,387,000 bushels, or 32.3% of 533,546,000 bushels of corn
produced last year. Of 142,045,000 bushels of oats produced in
1922 in the six states it was estimated that 25.4% or 36,079,000
bushels had not left the farms on March 1.
5
~ The reports""show that farm - stocks of wheat on March I in
Kansas, Missouri and Nebraska were larger than those of one
year ago, while in Oklahoma the supplies of wheat on farms on
March 1 this year was the lowest in the past three years, being
only about 8% of the 1922 crop. Colorado and Wyoming stocks
were also less than those on the corresponding date last year.
A large reduction in the stocks-of corn onirfarms in Kansas,
Missouri, Nebraska and Oklahoma occasions little surprise when
it is considered that stock feeding operations in the corn belt
during the winter have been larger than at any previous winter
in history.
The present stocks of oats on farms, totaling 36,079,000 bushels for the six states, is the smallest in several years, due to the
fact that the last two years crops of oats have been poor. Reserve stocks of barley in Kansas, Missouri and Nebraska,
27,185,000 bushels on March 1, were about normal.
Live Stock
Ranges and pastures throughout all sections of the Tenth
Federal Reserve District have been benefitted by recent rains
and snows. The improvement in the Southwestern district has
been encouraging to the live stock interests which have suffered
from the drought. Live stock is reported in good condition
as a rule. All classes wintered better than usual on account of
the abundance of feed and mild weather. There have been some
losses of sheep and lambs this winter in western feeding sections.
MARKET MOVEMENTS: The movement of live stock to
the principal markets of the District during February showed a
slight decline from the heavy movement in January, but receipts of all classes of animals during the month were larger than
in February of last year. Receipts of cattle, totaling 370,474
head at the six markets, were the lowest since April of last year,
but were the largest February receipts since 1919. A total of
50,n2 calves was received, a perceptible falling off as compared
with several months previous, but the largest receipts of calves
for the month of February in five years. Arrivals of hogs, totaling
990,990 head, with the exception of January, were the largest
month's receipts at the six markets since May, 1920. Sheep
receipts, aggregating 576,389, were the largest for February in
five years. The total receipts of all classes of live stock at the
six markets during the month of February were as follows:
Cattle
Calves
Hogs
Kansas City ........ .
Omaha ...•. . . • . • ... .
St. Joseph .... . . . . .. .
Denver ......... . ....
Oklahoma City ..• .. . .
Wichita .• ••...... . . .
146,828
113,089
43,628
22,640
23,632.
20,657
~,476
6,46o
7, 190
3,096
4,030
4,86o
289,2~
338,058
231,284
February, 1923 . ••. . ..
January, 1923 ..•..•.•
February, 1922. . .• . ..•
370,474
520,644
50,n2
990,990
~,933 1,135,839
40,746
754,080
359,595
45,365
40,161
46,918
Sheep
112,323
250,667
110,193
101,052.
439
1,715
Honea
Mula
4,319
1"49S
1,214
1,2s,
42 3
1,701
576,389
10,..51
6~,385
18,551
7,641
481,261
The heavy movement of stocker and feeder live stock to the
country, which has featured the markets for the past four or
five months, showed a marked decline in February from the
January movement. Shipments to the country of stocker and
feeder cattle showed a decrease of 1 5.6% from the total in February of last year. The countryward movement of stocker and
feeder sheep also was smaller than in January and in February
a year ago. There was a very heavy movement of hogs to the
country in February, which, though slightly under the total for
January, was more than double the number shipped to the country in February of last year. The shipment of stockers and feed-
6
THE MONTHLY REVIEW
ers to the countl'lf in February from the four markets for which
reports have been received were as follows:
Calves
3,5 17
Hogs
18,814
Omaha ... ~ •. . . ...... •.........
St. Joseph ......... ............
Denver . ........... : . ; ... ; .....
50,358
28,983
7,5 24
II,807
320
2,II8
1,098
February, 1913 ... ....... ·. •.· • • • •
January, 1923 ..................
February', 1922 ... ·.' .............
98,671
136,517
n6,949
Cattle
Karisas City ...................
956
Sheep
22,695
18,099
5,559
7,530
23,787
5,955
28,398
9,284
30,330
70,140
101,274
4,720
13,962
80,657
MEAT PACKING: Meat packers at the six principal centers
of this District did a very large business during February,. as
measured by the total of their purchases of animals for slaughter.
Although the number of animals slaughtered in February fell
below the total for January, there were increases of 19.9% in
cattle, 51% in calves, 35.4% in hogs, 33.5% in sheep over the
totals for February, 19'.2'.2. February operations were the largest
as to slaughter of cattle and hogs since February, 1919, and of
calves and sheep the largest February operations in five years.
The purchases by packers of animals for slaughter in February
follows:
Kansas City ...................
Omaha ........ ................
St. Joseph . .............. ......
Denver ... .... ... ........... . ...
Oklahoma City . . ...... .'........ ·
Wichita ........................
Februaty, 1913 .... • • • . • • • • •. · · · ·
January, 1923 ....... • • • • • · • · · · ·
February, 1922 .................
Cattle
78,889
67,717
30,429
7,641
15,815
4,033
204,524
266,539
170,563
Calves
21,147
2,274
6,170
989
3,o63
1,913
36,556
47,134
24,205
Hogs
238,933
233,208
189,723
36,475
37,201
42,932
Sheep
84,011
148,708
82,080
19,188
418
243
778,473
939,988
334,648
575,o89
250,634
38o,555
- Stoc~s of pork and pork products in Kansas City increased
7,492,'.200 pounds during February. The total stocks at the
dose of business February '.28 were 59,51'.l,600 pounds, against
52,020,400 on January 31 and 37,894,100 on February '.28, 19'.2'.2.
Mining
SOFT COAL: That there has been a checking of the recent
downward trend in bituminous coal production in the United
States ·is indicated by the preliminary reports of the United
States Geological Survey for the week ending March 3. These
reports show an increase of about 7% in the number of cars
loaded during the week over the preceding week and a total
output of approximately u,000,000 tons for the week, as compared with 10,33'.l,ooo tons in the week of February '.24. Soft
·t"oal production for the coal year {which began April 1, 19'.2'.2)
1
to _March 3, 19'.lJ, was approximately 377,878,000 tons, as
compared with 390,750,000 tons for the corresponding period
in the previous coal year, 19'.21-19'.2'.2, with indications that pr0duc6on for the present coal year, ending March 31, 19'.23, will
fall short of the previous year's production about 2q,ooo,ooo
tons.
· Production at the mines in the coal states of the Tenth Federal
,Reserve J::?isti:ict during _February was at an average of 51.8%
of capacity operation as compared with 57.8% of capacity in
January and 58.'.2% of capacity in February, 19'.2'.2. Of the 48.'.2%
of loss in operation during February 32.3% was on account of
"no market," 8.7% due to transportation disability and 4.6%
due to mine disability. Transportation disability was the greatest
factor in lost operation in Kansas, while Wyoming, New Mexico,
Oklahoma and Colorado reported very heavy "no market"
losses. The loss of operation due · to · various causes during
February is expressed in percentages of full-time capacity in the
following:
Losses Due To:
Colo. Kans. Mo. N. M. Okla. Wyo. 6 States
Transportation
Disability ........ 13.8% 27.1% 2.8% 0.4% 7.9% 0.1% 8.7%
Labor Shortage .......
1.6
3.6
0.9
Strikes ...............
3.1
0.5
Mine Disability ....... 2.7
I.I
10.5
4.6
2-4
3.3
7-5
No Market ........... 2 7·5
18.6
54.0
32.3
44.7
39.9
9·4
AU Other Causes .....
I.O
I.2
3.6
2.9
Percent All Losses ..... 44.0
Percent Production .... 56.0
54.2
45.8
25·7
74.3
52.6
57.8
47.4
42.2
-- --
55· 2
44.8
48.2
51.8
Commercial stocks of bituminous coal in the United States
on February 1, 19'.23, were estimated by the United States Geological Survey at 38,000,000 tons. This was 2,000,000 tons more
than the stocks on January 1 and 16,000,000 tons more than on
September 1, when mining was resumed in fields affected by the
long strike. With the increased rate of consumption in January
the stocks on hand February 1 would last only '.24 days if evenly
distributed.
COLORADO -METAL MINING: The increased prices of
lead and zinc seem to have stimulated production to a slight degree during the past month and have given increasing encouragement to Colorado metal mine operators. In general,
there has been no particular change in conditions, but everything
points to increasing activity when the weather conditions _make
it possible to renew operations in the various mining districts,
most of which are more or less snowed up at this time of year.
ZINC AND LEAD: Market conditions for the month of
February showed a steadily advancing price of both zinc and
lead ores in the Missouri-Kansas-Oklahoma district. Shipments
likewise showed increases throughout the month. Market range
for zinc blende ran from $41.00 per ton for the first week's
average to $45.00 per ton average for the last week of the month.
The month's average was $4'.2.55 per ton, covering a tonnage of
57,4'.25 tons. This was an average shipment of 14,356 tons per
week. Calamine ores were also strong and advanced from a
minimum of $25.50 per ton for the first week of the month to an
average of $29.00 for the last week in the month. This was an
average of $'.27.53 per ton covering a tonnage of 575 tons, or an
average of 144 tons per week. The surplus zinc ore stocks at the
end of the month were estimated at 75,000 tons.
A comparison of this month with February one year ago shows
a remarkable change in market conditions. The total shipments
for February, 19'.2'.2, were '.27,000 tons, which compares with 57,425
tons this year. There were no shipments of calamine in February
last year while this year shows a shipment of 57 5 tons. The
average price in February one year ago was $'.25.06 per ton, which
compares with $4'.2.55 per ton this year.
Lead ores were equally as strong as zinc. The month opened
at $105.00 per ton and closed at $114.00. The average for the
month was $109.34. The shipments for the month were 7,077
tons, or an average of 1,770 per week. Prices for lead ore one
year ago were $60.00 per ton, but shipments this year are 800
tons below last year.
Production conditions continue to be excellent and bai:ring
some cold weather during February and a continuance of the
influenza epidemic, the mines had a very good month indeed.
Announcements of further prospecting aGtivities and the building
of some new mills cohtinue to be made as the spring months
open. Despite the activity sufficient labor has been coming
into the district to take care of all demands.
THE MONTHLY REVIEW
Petroleum
Crude oil production in Oklahoma, Kansas, Wyoming and
Colorado during February was at an average of 587,329 barrels
per day, which was 15,859 barrels per day more than the January average and 88,365 barrels above the average for February,
1922. However, the total output in February was I ,270,800
barrels less than January production, due to February being
the shorter month. Compared with February of last year there
was an increase for the month under review of 2,474,200 barrels.
Total barrels production for February is here shown with figures
for January, 1923, and February, 1922, for comparison:
*Feb., 1923
Kansas. . . . . . . . . . . . . . . . . . . . . . . . . . 2,264,000
Oklahoma ........... ....... ...... 11,421,000
Wyoming ...... .................. z,753,450
Colorado. . . . . . . . . . . . . . . . . . . . . . . . .
6,750
Total ............................ 16,445,200
•-Estimated-American Petroleum Institute.
**-Official-United States Geological Survey.
••Jan., 1923
Reports indicate fewer wells were completed during February
than in January, but there was a larger volume of daily . hew
production, while large increases over a year ago in, both completions and new production were recorded for February. ' The
summary of field operations:
·
Completions
Kansas .. ....... .... ... ...........
Oklahoma ............ .... .. ......
Wyoming .........................
February, 1923 ............ • .... . • •
January, 1923 ... . ..... . . . .. .. . . ...
February, 1922 .•.... .. . ...........
Gas
Production
5,620
Dry
108,981
8,420
II9
'2
52
675
123,021
101,765
176
217
.56
95·
442
. 67,953
127
431
30
588
55
95 .
4
0
43 , .
**Feb., 1922
'2,421,000
12,398,000
2,889,joo
7,300
2,457,000
10,026,000
1,480,6oo
7,400
17,716,000
13,971,000
New work in the fields was indica_ted by the combined rep~!t~
for the three states which showed 2,322 rigs and well~ drjlling
at the end of February, against 2,365 one month previous to. that
date and 2,497 at the end of February, 1922.
Stocks ofcrude oil continue to increase, with a total at the·: end
of January of 89,193,735 barrels in Oklahoma and Kansas.
Survey of Cr~dit Conditions in the United States
CREDIT EXPANSION OUTSIDE THE FEDERAL RESERVE BANKS.
The loans and investments of all Member Banks throughout
the country, which give an accurate measure of the current
public dernand for credit, are now scarcely lower than they were
at the height of credit expansion in 1920. _ The recent statement
of the C_o mptroller of the Currency covering all Member Banks,
both City and Country, permits the following comparisons:
Total Loans
and
Investments
November 15, 1920 ... .. . ......... ....... . $26,108,000,000
December 31, 1921. ........ . ....... .. . .. .. 23,630,000,000
December 29, 1922 ...... .. .... . .. .. . .. .... 25,749,000,000
Total Demand
and Time
Deposits
$20,924,000,000
19,627,000,000
22,46o,ooo,ooo
IN 1920 RESERVE BANK CREDIT WAS LARGELY USED.
The expansion during 1922 indicated in these figures took
place substantially without calling into use the credit making
powers of the Federal Reserve Banks. In 1920, on the contrary,
the lending power of the Reserve Banks was used almost to the
legal limit, and on November 12 on that year the reserve ratio
of all twelve Federal Reserve Banks stood at 44 percent. On
December 27, 1922, when the volume of Member Bank credit
was practically the same as in the autumn of 1920, the reserve
ratio was 72%. Indeed, during the whole of 1922 the reserve
ratio was very high and varied little from week to week.
IN ~923 RESERVE BANK CREDIT IS LITTLE USED.
It will be seen from the foregoing that the reserve ratio is
not under present conditions an accurate measure of the amount
of bank credit in use. Its steadiness at a high level during 1922
was mainly the result of large imports of gold. In 1920 the gold
in the country was about a billion dollars less than it is at present;
and in order to supply the demands for credit and currency
prevailing in that period the Member Banks drew heavily upon
the Federal Reserve Banks. The immense volume of gold which
has since come here from foreign countries has enabled the banks
during the past year to satisfy the increased credit demands
without increasing the amount of reserve bank credit in use.
PRESENT CREDIT INCREASE BASED ON INCREASED GOLD.
Almost all of the gold which comes in finds its way in natural
course into the reserves of the Federal Reserve Banks, and
th_ereupon becomes the basis for potential increase of bank deposits. This is because the banks are obliged by ~aw to hold
in reserve only a portion of their deposits. Member Batiks
keep all of their reserves with the Federal Reserve Banks, on
the average about one dollar of reserve to every ten dollars 'of
deposits.
When additional gold is lodged with a reserve bank . and is
not used to pay debt owing to the reserve bank, it becomes -the
potential reserve for bank deposits of several times its face
amount. The banks create these additional deposits when they
make loans to customers or buy securities, the proceeds nf which
are deposited with them or with other banks. In 1922 gold
imports amounted to $238,000,000, while the loan:s and investments of all Member Banks throughout the Country in_:
creased $2,100,000,000 and their deposits increased $2,800,000,~
ooo or roughly, ten times the amount of the additional· gold.
THE EXTENT OF PRESENT INCREASE OF CREDIT.
The volume of bank deposits is now larger than ever before
and the volume of bank loans and investments not much if
any below the former maximum .. The productive . and qistributing activity of the country is very near its capacity.
It has already overtaxed our ordinary transportation facilities
and in many departments of industry ha:s caused a shortage
of labor. Also the general lever of commodity prices has risen
about II percent in a year. That this activity could have developed to such an extent without placing a strain _upon the
credit facilities of the whole banking system is in itself indication of the ample supply of credit available for use. And yet
only the primary source of supply, that within the banks the~selves, has been generally utilized. The secondary source, that
of the Federal Reserve banks, which as has been indicated is
now very great, has been but little used. ·
,
ABSENCE OF THE NATURAL CORRECTIVE, FREE GOLD MOVEMENTS
One of the natural regulators or correctives to a too · rapid
increase of bank credit is not now in operation. The United
States is the only great nation of the world which is on a free
gold basis. In ordinary times there is a delicate adjustmerft in
international economic relations which causes the tide of gold
to ebb and flow and so prevents an excessive accumulation in
any one country. At such times a rapid increase of credit in
any country, coupled with a rise in commodity prices, results
in a falling off in its exports, an increase in its imports and ultimately in an _outward flow of gold.
·
8
THE MONTHLY REVIEW
Such an outward flow tends to reduce the amount of credit
available for use, and is ordinarily followed by a decline in prices
and ultimately by a stimula~ion of export trade. At this time
and for many months past this corrective has been absent because of financial disorganization abroad and on monthly balance
the gold flow has been only one way, namely to the United States,
to purchase goods and pay debts, and for other purposes.
In the absence of this automatic international corrective,
changes in the volume of Bank credit in use i_n this cotlntry
occur largely as a result of domestic influences, of which the
economical rise of bank credit may be one of the most important
in preventing a too rapid increase in the credit volume. In
1919-1920 the use of bank credit was not only uneconomical
but excessive and was accompanied by a speculative bidding
up of prices without corresponding increases in the production
and consumption of goods as well as by an increase in the cost
ofliving without a corresponding increase in the general standard
of living.
AccoMooATION OF CREDIT To COMMERCE AND Bus1NEss
It is clear that commerce and business are best accommodated
as the Federal Reserve Act contemplates, by a volume of credit
responsive to the changes in the physical volume of production
and trade. It is also clear that nothing accommodates commerce
and business less than a volume of credit fluctuating without
reference to the needs of industry and agriculture. The more
nearly the volume of credit, by economical use, remains commensurate with the legitimate needs of business, the better are
accommodated not only commerce and business, but the welfare of every citizen.
THE
Business Conditions in the United States
Continued active business is indicated by the maintenance
of a high rate of industrial production, increases in freight
traffic and employment, and a large volume of retail and wholesale trade.
PRODUCTION: The Federal Reserve Board's index of production in basic industries for February was at the same high
level as in January. The index number for these industries is
now approximately equal to the highest point reached in the
past. Since the low point in July, 1921, there has been an increase
of 61%. The volume of new building projected in February
was exceptionally large for the season, particularly in Western
districts. Railroad freight shipments have been increasing and
the car shortage, which was somewhat relieved in December and
January, became more marked in recent weeks.
A continued increase in industrial employment has been accompanied by further advance in wage rates in a number of
industries. Many New England woolen mills announced a wage
increase of 12½% effective April 30. A shortage of women
workers has been reported in the textile, rub her, and garment
industries, and there is a shortage of unskilled labor in many
industrial centers.
TRADE: Wholesale and retail distribution of goods continued at a high level during February. Sales of both wholesale
and retail concerns reporting to the Federal Reserve Banks
were well above those of a year ago, but the increase was relatively more pronounced in wholesale trade. Mail order and
chain store business was almost as large in February as in
January despite the shorter month, and sales of 5 and 10 cent
stores were actually larger than in January.
WHOLESALE PRICES: The Bureau of Labor statistics
index of wholesale prices advanced slightly during February.
Prices of metals, building materials and clothing increased,
while prices of fuels and farm products declined. Building materials and metals during the past year have advanced more than
any other groups of commodities and are now about 25%
nigher than in March, I 922.
BANK CREDIT. Recent increases in industrial and commercial activity have been reflected in a larger volume of loans
by Member Banks for commercial purposes especially in the
New York, Chicago and San Francisco Districts. Loans of this
character by reporting Member Banks are now approximately
$500,000,000 larger than at the end of December. This increase
has been accompanied by a reduction in holdings of investments;
so that there has been only a moderate net increase in total
loans and investments.
The larger demand for funds has not led to any increase
during the past month in the total volume of credit extended
by the Reserve Banks. Total earning assets and loans to Member Banks on March 21 were approximately the same as four
weeks earlier. Borrowings by Member Banks in the interior
increased, particularly in the Chicago District, but borrowings
by Member Banks in the New York District decreased. Since
the end of February, there has been a small decline in the volume
of Federal Reserve Notes circulation which is now at approximately the same level as six months ago. Other forms of currency in circulation, however ,have recently increased.
The market rates on commercial paper advanced further to
a range of 5 to 5¼% and the rate on bankers acceptances re~
mained steady at about 4%. There has been a slight increase
in the yield of short term treasury certificates as well as of government and other high grade bonds.
STATEMENT OF CONDITION, FEDERAL RESERVE
BANK OF KANSAS CITY, INCLUDING BRANCHES
At Close of Business March 21, 1923
RESOURCES
Gold Coin and Certificates . .. .. .... ....................... . J 3,032,055.50
Gold Settlement Fund F. R. Board.. .......... .... ......... 33,412,801.68
Gold with Federal Reserve Agent.... ........... . ........... 53,553,100.00
Gold Redemption Fund... .... . . . .. .. . ... .................
1,744,593.14
Reserves Other Than Gold . .. ...... . ............... ... .....
4,384,658.00
Non-Reserve Cash........... . ... ... ........... . . ... ......
3,651,076.52
Bills Discounted for Member Banks:
Secured by Govt. Obligations .......... .. ............. . 11,267,763.89
All Other ...... .... .... .. . ............... . ...... .. . I 5,767,629.72
Bills Bought in Open Market ....... ...... ............... . . 1,076,66o.51
U. S. Bonds and Notes ... ... ..... . ................. . ..... . 32,931,250.00
United States Cert. of Indebtedness ................... .. .. .
5,871,500.00
Bank Premises .......................................... . 4,831,447.74
5% Redemption Fund Against F. R. Bank Notes ............
200,000.00
Uncollected Items.. ................................... ... . 38,697,888.24
All Other Resources.... ........ .... ......... .. ...... ......
973,II2.04
Total Resources . . ..... ............................. $:211,395,536.98
LIABILITIES
Capital Paid In ........... ... ...... ........... . . .......... t> 4,638,800.00
Surplus. ............... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,488,299.89
Deposits:
·
Government ............... . ...................... .
5,300,099.54
Member Banks, Reserve Account . ................... . 83,232,932.29
All Other ......................................... .
938,689.10
F. R. Notes in Actual Circulation ........................ .. . 63,759,185.00
F. R. Bank Notes in Actual Circulation ... .... ........ .. ... .
1,485,256.00
Deferred Availability Items ..... .. . .... . ............. .... . . 42,008,300.84
All Other Liabilities ......................... .. , . ... ..... . .
543,974.32
Total Liabilities ............................. .. ..... $211,395,536.98
OTHER TOTALS
Total Gold Reserves .. .. . ........ ........... . ..... ...... .. $ 91,742,550.32
Total Discounted and Purchased Bills Held .. .... .... ........ 28,u:2,054.12
Total Earning Assets .. . ......... . .... ....... ....... . . .... 66,914,804.12
Total Deposits....... ..... . ....................... . ...... 89,471,720.93
Ratio of Total Reserves to Deposit and Federal Reserve Notes
Liabilities Combined ............ ...... ............ ..
62.7%
Total Clearings for Week ...... ......... . . ................. $194,691,745.98
Total Number of Items Handled... .......... ..... .. ... ... .
1,2o6,4~
@FedFRASER