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THE MONTHLY REVIEW (overing Conditions in the Tenth Federal 'R.!.,serve 'District Federal Reserve Bank of Kansas City M. L. McCLURE, Chairman Board of Directors and Federal Reserve Agent VoL. 9 C. K. BOARDMAN, Assistant Federal ReserveAgent and Secrttary KANSAS CITY, Mo., MAY 1, 1924 brighter outlook for agricultural production, the chief industry of the Tenth District, than has been noted for several spring seasons is reflected by the April reports of the United States Department of Agriculture and those of the State Boards of Agriculture. Live stock, second among the basic industries, is in excellent condition and ranges and pastures 10% to z5% better than they were one year ago. However, the March rains and snows, and the freezes and thaws, which gave winter wheat in this District eighteen points better start than last year, and which produced moisture and soil conditions so favorable to grow'th, greatly retarded farm work. Plowing and planting of spring crops at the beginning of April was two to four weeks behind time, but with the advent of warmer weather in the second week of the month operations were going forward with a rush and farmers were determined, by diversified plantings, to more than duplicate their 1923 production. Seasonal reduction was noted in the volume of wheat moving into market channels, though receipts of corn in March were A No. 5 more than double those of a year ago. Marketings of cattle and calves were heavier, and hogs and horses lighter, than in the previous month or the corresponding month last year. Receipts of sheep were greater than in February but less than in March, 1923. Trade in the Tenth District has been affected by the same conditions which retarded farm operations and interfered with out-door work generally. Wholesale merchants reported that on account of bad roads their salesmen could not cover their trade territory and that deliveries were impossible in many communities. This situation, however, was greatly relieved early in April with orders from road men showing a_.marked increase and many more country merchants in the market. Retail trade, stimulated by moderate Easter buying, was also seriously hampered, though the reports indicated vast quantities of goods were going into consumption. Industrial reports show production in March at higher levels than in February, but with only one or two exceptions the out- The Situation in The Tenth District at a Glance 1 Bank debits to accounts of customers in 29 cities, four 1 Flour production at Southwestern mills during March 1,706,019 barrels. Increase over February 57,131 barrels or 3.5%. Decrease from March last year 26,730 barrels or .15% weeks ending April '.2, $1,033,577,000. Increase over previous four weeks '$3,720,000. Decrease from corresponding four weeks last year $126,369,000 or 11. 1%. 1 Building in 18 cities in March: Permits 2,968, value $9,186,617. Increase over February 751 permits and 'f,2,548,392 or 38.4% in value. Decrease from March last year 273 permits and $2,II6,548 or 18.7% in value. ~ Grain receipts (in bushels) at 4 markets during March, compared with March last year: Wheat 5,098,500, decrease 1,477,250; Corn 6,350,450, increase 2,6oo,800; Oats 2,221,800, decrease 403,900. 1 Clearings Federal Reserve Bank during March 4,986,934 items and 'f,777,722,416 in amount. Increase over February 425,138 items and 'f,141,842,665 or 22.3% in amount. Decrease from March last year 402,449 items and 'f,48,678,315 or 5.9% in amount. Coal mining operations in 6 States during March 56.5% of full-time capacity. In March last year 53% of full time capacity. Commercial failures in Tenth District during March: Number 113, liabilities-r-$1,851,517. Decrease from February 16 failures and 'f,116,564 liabilities. Increase over March last year 16 failures and 'f,490,417 liabilities. 1 Lead ore shipments, Missouri-Kansas-Oklahoma District, during March 9,804 tons at 1,119.85 per ton. In March last year 10,485 tons at $118.87 per ton. ,r Live stock receipts at 6 markets during March, compared with March last year: Cattle 374,842, increase 1,882; Calves 46,641, increase 2,265; Hogs 1,026,698, decrease 209,497; Sheep 567,825, decrease 70,958; Horses and Mules 9,213, decrease 2,435. ,r Meat packing at 6 centers during March, compared with March last year: Cattle 207,239, decrease 7,504; Calves 35,908, increase 3,468; Hogs 756,933, decrease 220,rn2; Sheep 318,984, decrease 66,31 I. Crude Oil Production in 4 States during March I 8,527,550 barrels. Increase over February 732,550 barrels. Decrease from March last year 553,450 barrels. 1 Zinc ore shipments, Missouri-Kansas-Oklahoma District during March, 84,594 tons at $41. 50 per ton. In March last year 94,185 tons at 'f,48.15 per ton. 1 ,r 1 This Copy Released For Publication In The Morning Newspapers May 1 THE MONTHLY REVIEW PRINCIPAL RESOURCE AND LIABILITY ITEMS OF MEMBER BANKS IN SELECTED CITIES Apr. 21 1924 72 Banks 1. 3. 4. 5. 6. 7· 8. 9· Loans and Discounts (including rediscounts): (a) Secured by U. S. Govt. obligations·---···'/, (b} Secured by stocks and bonds, other than U.S. Bond (c) All other...... Investments: (a) U. S. pre-war Bonds.... (b) U.S. Liberty Bonds. ___ (c) U. S. Treasury Bonds ....... (d) U. s. Victory notes and Treasury notes.... (e) U. S. Certificates of Indebtedness.--······· (f) Other Bonds, Stocks and securities·--····· Total loans and discounts, and investments.... Reserve balances with F. R. Bank Cash in vaul Net demand deposits on which reserve is compute Time deposit Government deposits·-·-···-· BiJJs payable and rediscounts with F.R. Bank secured by (a) U. S. Govt. obligations._. (b} All other ····-·········--·- Apr. 4, 1923 78 Banks 6,103,000 1, 8,177,000 85,035,ooo 326,107,000 77,029,000 365,202,000 12,031,000 37,785,000 2,966,000 15,575,000 1,730,000 55,241,000 542,573,000 44,958,000 13,863,000 12,092,000 46,658,000 4,637,000 20,670,000 7,358,000 59,883,000 6o1,706,ooo 51,935,000 11,103,000 4o5,753,ooo 131,259,000 3,850,000 458,505,000 124,508,000 6,913,000 year ago. Time deposits, however, have remained almost constant since the beginning of the year and on April 2. were 5.4% larger than on the corresponding date in 1923. At the Federal Reserve Bank of Kansas City and branches there was a steady decline during March in the volume of bills discounted for Member Banks. The total was $20,899,925 on March 26, the lowest of the year. This was followed by a slight expansion in the volume of bills rediscounted, with the totals at $21,106,301 on April 2., $2.3,648,767 on April 9, and $25,708,996 on April 16. The lowest point reached in 1923 was $16,608,702, on January 3 I. STATEMENT OF CONDITION, FEDERAL RESERVE BANK OF KANSAS CITY INCLUDING BRANCHES At Close of Business April 16, 1924 April 18, 1923 RESOURCES 670,000 6,310,000 II,439,000 5,754,ooo TOTAL (Items J to 9 inclusive),----·····'/,1,149,236,000 '/,1,271,863,000 No1'E: Due to consolidations of banks, the 7z banks reporting in 1924 are serving practically the same business served in 19z3 by 78 banks; hence, figures for the two periods are comparable. put fell short of ~hat of March last year. Petroleum production in March was greater than any other month this year. More refineries were in operation and the output of refined products increased, giving a better outlook to the situation. Coal mining was at a higher per cent of full time capacity to the end of March, when, with the expiration of the coal year contracts, operations at the mines of the Southwest Coal Operators Association in three states, were suspended until new contracts were negotiated. Lead and zinc ore production during the month was the largest of the year, and metal mining in Colorado was increasing rapidly with the advance of spring. Building had a poor start because of weather interference. There was a big gain in March over February, both in the number of permits issued and the estimated cost of construction, but the returns were not up to the high record of March, 1923. Material plants-brick and cement works, glass and paint factories-were resuming operations early in April with their output about the same or a little below that for the corresponding month last year. The general revival of outdoor work in April affected the labor situation quite favorably. But little unemployment is reported. Farm labor is in good demand in most sections, with a scarcity of efficient workers. Banking and Credit Demand for currency and credit at the banks in the Tenth District continued light during March, with the result that the volume of loans at the beginning of April as indicated by combined statements of seventy-two reporting Member Banks published elsewhere in this issue, was about 7.5% less than at the first reporting date in April last year. Investments by banks declined in recent weeks until the total on April 2 was about 17% below that of a year ago, and at the lowest point since the summer of 1922. Demand deposits, though showing an increase over earlier weeks of the current year, were 11.5% less than a Gold with Federal Reserve Agent................................ '/,53,999,855 Gold redemption fund with U.S. Treasury................ 3,611,995 iso,710,000 Gold held exclusively against F. R. notes·--··········· 57,6n,850 Gold settlement fund with F. R. Board ...................... 32,199,436 Gold and gold certincates held by bank...................... 3,640,334 53,088,246 31,572,948 3,o64,701 Total gold reserves ...................................................... 93,451,620 Reserves other than gold................................................ 4,502,573 87,725,895 3,638,084 Total reserves...................................................... 97,954,193 Non-reserve cash._······----··································· 3,044,815 Bills discounted: Sec. by U.S. Government obligations.--················· 3,255,469 Other bills discounted_ ___ ··········································· 22,453,527 91,363,979 3,284,9o3 Total bills discounted ···-····································· Bills bought in open market.......................................... U.S. Government securities: Bonds .....·----·································--- Treasury note"-------·································· Certificates of indebtedness·-····································· 25,708,996 5,856,097 29,032,535 75,000 631,900 13,335,100 3,909,500 2,747,85° 30,58z,900 Total U . S. Government securities.................... 17,876,500 Municipal warrants.-....................................................... ................. . 37,866,250 Total earning assets ............................................ 49,441,593 66,973,785 100,000 40,946,316 4,867,586 1, 1 87,997 5% Redemption fund-F. R. Bank noteS.--··············· ................. . Uncollected items............................................................ 38,539,272 Bank premises .................................................................. 4,594,543 All other resources·--------···························· 1,051,740 z,378,246 II,193,z67 17,839,268 4,535,500 TOTAL RESOURCES.---·--························$194,6z6,156 LIABILITIES F. R. notes in actual circulation·-····----····••·$64,452,740 F. R. Bank notes in circulation-ne.___ _ __ Deposits: Member Bank-reserve account _ _ _ _ _ _ 73,920,893 Government..·-·············· 3,539,786 Other deposits.... 395,541 '/,61,888,735 l,458,453 82,504,122 2,59z,94o 561,136 77,856,220 37,692,086 4,450,000 9,495,540 679,570 85,658,198 44,989,071 4,603,000 9,488,300 638,809 TOTAL LIABILITIES ................................ $194,626,156 $'1.08,7'1.4,566 Ratio of total reserves to deposit and F. R. note liabilities combined...................................................... 68.3% Contingent liability on bills purchased for foreign correspondents........................................._ _ _ _ 797,640 Total clearings for weelc ............................................. $178,498,544 Total number of items handle,o..----·····-·-····- l,'.228,341 1 ,37 2 ,33° '/,194,089,416 1 , 2 3 1 ,393 Total deposits·-··----·····-----··············· Deferred availability items ............................................ Capital paid in·--······························:.......................... Surplus........... _ _ _ _ - - - - - · ······················ All other liabilities·---····················································· THE MONTHLY REVIEW ACCEPTANCES: Bills purchased on the open market and held by the Federal Reserve Bank of Kansas City at the close cf business April 16 aggregated $5,856,097. Of this total $35,000 represented cotton paper, the remainder based on exports and imports and dollar exchange. One Member Bank in Kansas City purchased $565,000 of grain, flour and flax seed meal paper, which was sold to out-of-town dealers. There is a fair demand for bills of 60 and 90 days maturity. FEDERAL RESERVE BANK CLEARINGS: During the month of March 4,986)934 items representing $777,722,416.94 were cleared through the Federal Reserve Bank of Kansas City and branches at Omaha, Denver, and Oklahcma City. These totals indicated an increase over February of 425,138 or 9.3% in number of items and $141,842,665.19 or z2.3% in amount. Compared with March 1923 there was a decrease of 4,..n,449 or 7.5% in number of items and $48,678,314.71 or 5.9%, in amount. BANK DEBITS: Clearing Houses in twenty-nine cities in the Tenth District reported for their members debits to customers' accounts aggregating 1,1,033,577,000 for a period of four weeks ending April 2. This total exceeded the debits in these cities during the previous four weeks ending March 5 by $3,720,000 or 0.36%. For a comparison with debits during the corresponding four weeks ending April 4, 1923, the reports of 28 cities are used. These indicate a decrease of $126,369,000 or 11.1%. SAVINGS IN BANKS: Sixty commercial banks and savings banks in cities of the Tenth District reported savings deposits April I aggregating $107,866,918, a loss of $258,484 from the total on March 1 and a gain of $4,060,725 or 3Js% over April 1, 1923. Savings accounts of fifty-four banks on April 1 were 352,156 in number, an• increase of 1,071 over March 1 and an increase of 40,323 or 11.4% over the number on April 1, 1923. DEBITS BY BANKS TO CUSTOMERS ACCOUNTS Four weeks ending Four weeks ending April z, 19z4 April 4, 19z3 .,, 3,744,000 5,380,000 14,86o,ooo 57,060,000 14,504,000 xoz,804,000 39,748,ooo -3 2 .3 -5.2 -4.5 Tota...__ _ _ _ _ _ _ _ .f,1,033,577,000 $1,134,931,000 -II.I *-Began reporting January 16, 19z4. I4,IZ4,ooo 8,584,000 IZ,667,000 145,79°,000 iz,z30,ooo 3,899,000 4.3 -2.7 -23.8 2.0 -3.9 IZ.I -28.0 -20.8 z,6z5,ooo 6.5 3,z79,ooo 10,1z3,ooo 10,617,000 14,795,000 16,771,000 309,461,000 3,7z3,ooo -14.1 -29.9 -28.6 -1.0 4.3 3,39 1,000 5.7 -55.6 z3,9zz,ooo 78,3p,ooo 9,754,000 1 95,49°,ooo SAVINGS IN BANKS IN TENTH DISTRICT CITIES DEPOSITS Banks Denver, Colo, ___ ················ 7 Kansas City, Kans.·--······· 4 Kansas City, Mo ............... 9 Lincoln, Nebr ... 3 Oklahoma City, Okla~---· 7 Omaha, Nebr 6 St. Joseph, Mo................... 6 Tulsa, Okla ..... 6 Wichita, Kans 6 Outside............. 6 April 1, 19z4 March 1, 19z4 April 1, 19z3 z, 137,857 z,050,317 8,915,186 5,879,739 z,u1,6z7 z,014,04z TotaL ....... f,107,866,918 f,108,a5,402 60 $ 55,6o3,355 'f, 56,135,z17 2,531,897 13,718,487 z,571,4z9 -IJ.4 7.8 -z3.1 -31.z -1z.4 ~-4 -10.5 -21.I -18.1 13,799,909 2,746,75° 6,z93,944 z,73z,640 6,z90,494 7,861,804 7,657,559 8,95o,507 5,989,56o $ 53,zz5,514 z,369,558 x3,zo6,743 z,861,480 6,341,z61 7,394,483 8,377,358 5,897,954 2,z47,z93 1,984,549 'f,103,8o6,193 ACCOUNTS Banks Denver, Colo---····· 6 Kansas City, Kans,---········ 3 Kansas City, Mo ............... 8 Lincoln, Nebr ... _ _ _ _ 3 Oklahoma City, Okla.·--··· 7 Omaha, Nebr _ _ _ _ 6 St. Joseph, Mo ................... 6 Tulsa, Okla......................... 5 Wichita, Kans _ _ _ _ 6 Outside................................ 4 April 1, 19z4 March 1, 19Z4 Apr. 1, 1923 96,4z9 83,044 97, 169 9,041 8,397 9,310 90,185 89,807 90,738 14,588 14,699 I4,Z5S 16,845 17,354 15,53z 6o,6z8 6o,549 40,897 2z,z68 zz,444 21,sz7 19,978 19,793 18,484 16,130 16,zz5 15,767 4,466 4,IZ3 4,5oz Total.... _ _ _ _ _ _ ,.54 351,085 JII,833 Commercial Failures The March returns showed the number of failures and amount of liabilities exceeded those for the corresponding month last year in the Tenth District and also in the United States. The March record of u3 failures and $1,851,517 liabilities for the Tenth District was, however, the lowest for any month this year. Failures in the Tenth District during the first quarter of 1924 and 1923 were: NUMBER Percent Change Atchison, Kansas........................ 'f, 5,638,000 Bartlesville, Oklahoma.------··· n,513,000 Casper, WyominFr-----·· 10,763,000 Cheyenne, Wyoming................. . 8,75z,ooo Colorado Springs, Colo .. ____ ..... a,177,000 Denver, Colorado·--··················· 163,363,000 Enid, Oklahoma.......................... 8,809,000 Fremont, Nebraska ................... . 3,087,000 Grand Junction, Colorado........ z,796,000 Guthrie, Oklahoma ................... . 2,815,000 7,100,000 Hutchinson, Kansas·--··············· Independence, Kansas.-.......... . 7,58z,ooo Joplin, Missouri .......................... 14,647,000 Kansas City, Kansas _ __ 17,49z,ooo Kansas City, MissourL--········· z74,199,ooo 4,014,000 Lawrence, Kansas.----··············· *Lincoln, Nebraska................... . z5,015,ooo McAlester, Oklahoma............... . 3,585,ooo Muskogee, Oklahoma............... . 10,610,000 Oklahoma City, Oklahoma._ .... . 6o,z36,ooo Okmulgee, Oklahomd.-- - 6,707,000 Omaha, Nebrask..____ _ __ 17 1,337,000 Parsons, Kansa~---z,534,ooo Pittsburg, Kansa.,__ _ __ 5,100,000 Pueblo, Colorado. _ _ _ __ 14,198,000 St. Joseph, Missouri........ _ _ 52,841,000 Topeka, Kansas ......................... . IZ,974,ooo Tulsa, Oklahom-..._ _ __ 81,134,000 Wichita, Kansa....__ _ __ 3z,559,ooo 5,4o3,ooo n,831,000 3 19z4 January....... _.... February March .... Three Months ........ 168 ... 1z9 113 IO LIABILITIES 1923 1923 81 89 97 Jz,035,ogo 1,968,081 1,851,517 'f,1,491,314 1,154,384 1,361,100 z67 'f,5,854,688 $4,006,798 1924 The record of failures in the United States by Federal Reserve Districts during March 1924 and 1923 is here shown, as compiled by R. G. Dun & Company: zz9 LIABILITIES 1923 x9z4 'I, 2,7z9,443 $ z,996,492 8,883.184 26,870,199 1,7z4,650 10,6zz,911 5, 1 56,589 3,037,892 4z,z3z,5z7 z,847,909 2,788,463 5,n1,zz3 8,z96,645 5,36o,490 1,508,844 1,313,655 1,415,434 979,z70 1,361,100 1,851,517 2,474,504 950,677 2,977,z18 z,553,3z8 Tota,..__ _ _ _ _ _ _ _ _ _ _ 1,817 1,682 f,97,651,oz6 $48,393,138 First, Boston·-······ Second, New Yor Third, Philadelphia .... Fourth, Cleveland_ ...... Fifth, Richmon Sixth, Atlant ............. ·-···-Seventh, Chicago.. Eighth, St. Louis.... ____ Ninth, Minneapolis .... TENTH, KANSAS CITY Eleventh, Dalla Twelfth, San Francisco .. NUMBER 19z4 1923 163 143 363 316 83 73 1 44 130 100 105 1z8 n7 z51 203 100 107 76 97 91 77 113 74 z16 Failures in the United States during the first three months totaled 5,655 as compared with 5,316 for the first quarter of r923. Liabilities were $184,865,57£ for the three months period against 1,138,231,574 for the same period last year. THE MONTHLY REVIEW 4 Mercantile Decreased sales of dry goods, millinery and groceries and increased sales of hardware, furniture and drugs were reflected by the March reports of wholesalers as compared with their February business. March sales in all lines, except groceries, were in lesser volume than in March 1923, according to the same reports. Outstanding accounts in all lines except dry goods and groceries increased in March over February, but with the exception of groceries the outstandings at 'the end of March were less than one year ago. In the summary which follows sales and outstandings for March 1924 are compared with those for February 1924 and March 1923, based upon the reports of representative wholesale houses at the principal trade centers of the Tenth District: SALES OUTSTANDINGS No. Mar, 1924 Mar., 1924 Mar. 31, 1924 Mar., 31 19:14 of compared with compared with compared with compared with Stores Feb., 1924 Mar., 1923 Feb. 29, 1924 Mar. 31, 1923 Dry Goods.._ 4 -13.2 -17.0 -3.5 -7.8 Groceries._.__ 6 -0.9 2.6 -2.9 0.4 Hardware.. - .. Io 6.5 -23.9 5.0 -10.8 Furniture...._. 5 I.I -25.6 I0.8 -8.8 Drugs._..._ 7 8.7 -1,:,.5 2.1 -5.5 Millinery._..... 5 -26.1 -40.6 6.9 -22.9 Wholesalers of dry goods attributed the slowing down of their business mainly to the condition of the weather and of the roads during the first quarter of the year, which interfered enough with business to make a difference of 10% to 12% in sales. There was also reported a reduction during the first quarter of the year of about 10% in the price of raw cotton, which had a depressing effect on the market for finished goods. Stocks of retailers are low and no inclination to buy and refill had been shown. Distribution of groceries by wholesalers during March were considered remarkably heavy under such unfavorable conditions and reflected large quantities of food going into consumption throughout the District. The hardware trade, although handicapped by continued snows and rains which made country roads impassible during March, exhibited considerable activity for the season. Stocks in the hands of retail dealers were reported very low. The reports indicated city tonnage in March was about the same as last year but the country tonnage fell off very materially. Most of the furniture factories were reported as making very good deliveries and wholesalers throughout the District were in better condition to take care of their trade than for some time. A recent reduction of approximately 20% was made in all rugs. WHOLESALE PRICES IN THE UNITED STATES Index of the Bureau of Labor Statistics (1913-100) March Feb. 1924 1924 Farm Products·--·······························•···················137 142 Food.- - - - - - - ······•·•·····························141 143 Cloths & Clothing. _ _ _ _ _ _ :................. 191 196 Fuel & Lighting.-................................................... 181 180 Metal.,___ _ _ _ _ _ _ _ _ ....................... 144 143 Building Materials. ___ ........................................... 182 182 Chemicals & Drugs...................... - - - - · · ····130 131 House Furnishings..·-- ···········································175 176 Miscellaneou.,_______ .................................... 113 I 14 March 1923 143 143 201 206 149 198 136 185 127 Total...·-- - - - - - · · · · ···························150 I 52 159 (Bureau of Labor Statistics-Regrouped by the Federal Reserve Board) C r o p • - - - - - - - · · ·······························165 176 174 Animal Products.... _ _ _ _ _ _ _ _ _ n8 n6 123 Forest Products.... --------·······194 195 227 Mineral Products·--····-····· - - - - - - -179 177 202 Raw Materials.--- - - - - - - - -········154 156 167 Producers' Good"------·-----··137 139 148 Consumers' Good.,__ _ _ _ _ _ _ .......... I 53 154 1 56 1 59 All commodities ........ - - - - - - ············150 While the wholesale drug business showed a perceptible in crease in the volume of sales during March over February, the general situation was somewhat disappointing to dealers. A vast number of orders were received at the various centers but the orders were very small. Prices continued firm with a slight tendency to decline in a few lines. RETAIL: Trade throughout the Tenth District during March was adversely affected by the same conditions which brought a slowing down of the wholesale business in the various lines. Sales reported for March by eighteen Department Stores in the larger cities showed an average decline of 14% from the February total and for the first three months of 192.4 was 6.8% below sales for a like period last year. General stores in the smaller cities reported a fair March business, although in several instances price concessions and extensive advertising brought increases in sales over last year. Easter trade was generally good. COLLECTION: The Department Store figures on per cent of collections during March to outstandings at the beginning of the month was 44.2% as compared with 47.1% one year ago. Collections were reported fair to good in the smaller cities and industrial centers. Wholesale dealers' reports indicated collections were running in about the same ration as sales, somewhat sluggish and below normal. CONDITION OF RETAIL TRADE IN CITIES OF TENTH FEDERAL RESERVE DISTRICT DURING MARCH, 1924 (Based upon Reports from r8 Department Stores) Kansas City District ( 18) Denver Outside (J) (4) (II) Dec. 15.6 Dec. 15.8 Dec. 11.6 Dec. 14.0 Dec. 5.9 Dec. 5.7 Dec. 8.4 Dec. 6.8 Inc. 3.4 Dec. 6.5 Inc. 3.0 Inc. o.8 Inc. 8.9 Inc. Inc. 6.8 Inc. 7.6 Percentage increase (or decrease) of net sales during March, 1924, •over net sales during · same month last year_ _ _ __ Percentage increase (or decrease) of net sales from Jan. 1, 1924, to March 31, 1924, over net sales during same period last year·---··-·· · · · - - Percentage increase (or decrease) of stocks at close of March, 1924, over stocks at close of same month last year·--·····-·····- - - - Pcrcentage increase (or decrease) of stocks at close of March, 1924, over stocks at close of February, 1924.. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ Percentage of average stocks (selling price) at close of each month this season (commencing with January 1) to average monthly net sales (selling price) during the same pcrio....__ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ Percentage of outstanding orders (cost) at close of March, 1924, to total purchases (cost) during the calendar year, 192.- - - -- -- - - - - - - - Percentage of collections during the month of March, 1924, on amount of outstanding accounts on February 29, 1 9 2 , " t - - - - - - - - - - - - - - - - Perccntage of collections for same period last year.. _ _ _ _ _ _ _ _ _ _ __ 51.1 53·5 7.1 664.7 520.7 541.5 7.5 6.3 5.6 36.8 37.6 44.8 -49·5 44.2 47· 1 THE MONTHLY REVIEW Agriculture April moisture conditions were ideal for early growth of ~vinter grains and grasses and generally favorable for a year of large production in the Tenth District. The heavy rains and snows during March were just what was needed for growing crops, though they interfered with early seeding of oats apd barley and the preparation of the ground for corn and other spi:ing crops. The soil in many sections was still too wet at the second week of April and in those sections farm work made little progress. With the advent of warmer weather, however, conditions improved rapidly and there was a general_speeding up of farm work. WINTER WHEAT: With 13.7% decrease i;i acreag<: of winter wheat sown last fall, the condition in seven Southwestern states on April 1 averaged 87 % of normal or 18 roints better than on April 1, 1923. The following, compiled from the reports of the. United States Department of Agriculture, shows the condition and acreage of winter whe,'.t in th~ seven states: AcRES CONDITION April Colorado................ Kansas.......... ........ Missouri................ Nebraska. ___....:.... New Mexico.......... Oklahoma.............. Wyoming·---········· Total 7 States.--··· United States....... . 1, 94 87 77 91 ·97 87 91 19z4 April 1, 1923 65 64 84 64 50 80 75 Fall, 1923 1,312,000 10,081,000 2;225,000 3,104,000 122,000 3,374,000 16,000 20,234,000 40,191,000 SowN Fall, 1922 1,6oo,ooo u,587,000 2,967,000 3,527,000 94,000 3,667,000 18,000 23,460,000 46,069,000 Reports from throughout the .winter wheat belt of the Tenth District are quite favorable. The Kansas report indicated that there would be less than the average abandonment and such abandonment would depend on how serious the Hessian Fly becomes in the near future. The report said: "The greatest menace from this source is in the orth Central and North Western counties. While present in some counties of the southern half, the By gained but little headway in those counties last fall because seeding was delayed on account of too much rain. Moisture conditions are ideal ·in almost all sections for inducing . early growth and the nursing of weak plants. Rains that have interfered with oats,,and barley seeding have been beneficial to the wheat acreage. In Nebraska, where the condition on April .1 was reported at 91 % the season w.as regarded highly favorable with plenty of soil moisture, which reduced winter injury to the minimum. Last year the soil was extremely dry and not only was the condition low but the abandonment heavy. The Oklahoma report said: "Only six times since Statehood has the condition of wheat been better than this vear. The excellent condition of wheat is due to the amp~e supply of soil and sub-soil moisture, and absence of destructive winds. Insofar as moisture is concerned, a good wheat crop is assured; however; excessive rains at harvest, insect damage and hail are hazards that may reduce the crop materially, but to this date no greenbug infestation has been reported. Abandonment is expected to be very small. In the Panhandle, where abandonment is usually greatest, losses have been very slight this winter." The reports April 1 from Colorado, Wyoming, and New Mexico all indicated a better condition of winter wheat than was reported on April 1 last year. Missouri reported a lower condition than last year. The spring wheat area in Nebraska this year is about 30% less than that of 1923. In Colorado and Wyoming there was reported an intention on the part of farm ers to plant a smaller acreage· of spring wheat. 5 CORN: Planting in the Tenth District is late this season because of interferehce with the spring plowing by cold weather ai:id wet soil in March. Improvement in weather and soil conditions in the secQnd week of April permitted field work to start with a rush. According to the United States Department of Agriculture reports reflecting farmers' intentions to plant crops there was in prospect an increase in corn acre age over that of last year._ The c:::xtf nt of the increase, however, was to be deterJ!lined by weather and soil conditions during the last half of April. . OATS A D BARLEY: Seeding of oats was also delayed by unfavorable conditions in March. In Missouri, where an inc~eased acreage was expected, only 28% of the oats area had been seeded by April 1. In Oklahoma better progress was reported, about 7 5% of the acreage having been planted by April 1. Wet weather caused a low condition of early planted oats in that state, particularly in the northeast part. Rain~ and snows interfered with seeding of oats and barley in Kansas, Nebraska and Colorado. A slight increase in the barley acreage in Nebraska and Kansas was indi~ated. Oklahoma farmers were turning more and more to barley and indications April i pointed to an increase of 1 5% in acreage. Colorado reported a prospective increase of 20% in, acreage planted to barley. SUGAR BEETS: Theearlyoutlook is for a record sugar beet acreage in the Tenth District, although complete figures are not available at this time. Payment by refiners on April 1 of an additional $1 per ton for beets delivered brought the total received by growers in the Colorado-Nebraska district to $7.50 per ton for the 1923 crop. This price greatly stimulated interest in sugar beet growing and refiners report increased acreage contracted for this year. Planting of sugar beets, delayed by unfavorable weather, was going forward during the latter part of · April and was expected to continue through May. Extension of the sugar beet area in Kansas and New Mexico is indicated by reports of experimental plan tings. POTATOES: Colorado growers reported intentions to reduce their potato acreage 2 %, while Kansas and ebraska growers expected to plant about the same acreage as last year. Potatoes in Oklahoma were backward, especially in the eastern part of the state in the commercial sections where considerable.planting had been done during March. COTTON: Preparation of th e soil for cotton in Oklahoma, Southern Missouri and in New Mexico made only fair progress during March and planting was somewhat behind time. Planting in Texas at the beginning of April was still confined to the southern one-third of that state and germination, progress and condition of early planted cotton was poor. No official report of the 1924 cotton acreage had been made to the date of this issue of the Monthly Review. FRUIT: Reports on the condition of fruit on April 1 vary. The Missouri report said: "Fruit conditions are fair except for peaches. Apples are 85% of normal, or the same as last year. AVERAGE CASH PRICES OF GRAIN AT KANSAS CITY (United States Department of Agriculture Reports) Week Week March 22-28, 1924 March 22-28, 1923 Wheat No. 2 Hard Winter................................. . No. 2 Red Winter .............................:...... CornNo. 3 White .............................................. · No. 3 Yellow.-····-····-································ No. 3 Mixed .. ·--············---OatsNo. 3 White.............................................. 104 105 72 73 71 6 THE Mo:N'THLY REVIEW Live Stock Peaches 40%, the same as last year. Apricots are a failure. Most fruit buds were held back by the cold weather. Strawberries were hurt slightly by recent freezes in the Southwest, and~.small fruits killed down during the winter." The .report also says that "plums, cherries, pears and gooseberries have not been generally injured." The Oklahoma reports, those of the U. S. Department of Agriculture and of the State Board of Agriculture, indicated prospects were generally good for the best fruit crop in several years, although heavy damage was sustained in scattering localities. Apples were rated at 92% of a normal crop and peaches at 82%. Kansas and Nebraska reported prospects for an excellent fruit crop with the exception of peaches. Trees did not bud as early as usual, eliminating danger from frosts. IMPLEMENTS:"(The implement and farm machinery business was not so good in March as it was a year ago, due to the fact that road conditions were such that salesmen could not get into the rural territory. Farmers had been able to do but little spring work, and with the season almost three weeks late, little buying of implements could have been expected until weather conditions were more settled. Early April reports indicated some improvements in the implement business. Grain Movements Further reduction in the volume of wheat moving to primary markets was reflected by the March reports from Kansas City, Omaha, St. Joseph and Wichita. The four markets reported combined receipts of 5,098,500 bushels of wheat, 34.3% less than in February and 22.5% less than in March, 1923. Receipts of 6,350,450 bushels of corn at the six markets were 38.3% less than in February but were 69.4% greater than in March last year. Arrivals of oats and rye fell below those of the previous month and the corresponding month last year. Arrivals of barley and kafir did not ,come up to the February volume, but exceeded the volume of a year ago. The March receipts of grain at the four markets follow: Wheat Corn Oats Kansas City..............2,616,300 2,086,250 695,3oo Omaha.--·--···--·--·--·----1,052,800 2,892,400 1,302,000 166,000 St. Joseph 656,6oo 1,083,000 Wichit 288,800 772,800 58,500 Rye Barley Kafir 18,700 72,000 398,200 32,200 14,400 4,500 31,200 57,6oo March, 1924·---·--·----·5,098,500 6,350,450 2,221,800 5°,900 n7,6oo 46o,300 February, 1924-.... _.7,758,400 10,293,6oo 2,4n,900 81,000 219,900 619,400 March, 1923·-----------.6,575,750 3,749,650 2,625,700 114,000 II4,100 187,400 Flour Production Southwestern mills produced 1,706,019 barrels of flour in March, which was 57,131 barrels or 3.5% more flour than was produced in February and 26,730 barrels or 1.5%less than was produced in March of last year. Kansas City, Omaha and Salina reported decreases in their output while St. Joseph, Wichita and the group of outside mills reported increases. The reports for March of flour production, as compiled from the Northwestern Miller's reports, follow: Mar., 1924 Barrels Salin------------·----------------·--------···· 75,672 St. Joseph·-····----··----------····· 124,273 Wichit ··----····------· .. ·····--····· 149,895 Outside............... --....... ....... --....... ----.... --.... 859,590 Mar. 1923 Barrels 473,172 84,200 120,484 IIl,420 140,110 803,363 'f otal. ..................... --.. --····------··------·------------····--··--···--·--------... 1,706,019 1,732,749 Kansas CitY--------···--··--------------------------···· 417,336 ~ah ~D Early April reports of the Bureau of Agricultural Economics, United States Department of Agriculture, indicated a very promising pasturage outlook in nearly every section of the Tenth District. The heavy storms and low temperatures in March, with a considerable portion of the range area covered with snow, retarded the use of the open range from the earlier date expected. This moisture, however, was beneficial to the growth of spring grass at the advent of warmer weather and though the· grass was late in getting a start the condition of ranges and pastures in April was 8 to 10 points better than in April of last year. Percentage of condition of pastures and stock on April I this year and last year (100-normal) was reported by the United States Division of Crop and Live Stock Estimates, Denver, as follows: RANGES Apr. 1 Nebrask New Mexico Oklahoma.......................... Wyoming. SHEEP Apr. l 1924 Apr. l 1923 Apr. 1 1924 Apr. l 1923 95 85 99 93 75 96 90 91 91 90 89 82 1924 Colorado ............................ Kanl"as CATTLE Apr. 1 1923 93 100 63 75 93 81 84 79 97 95 96 74 85 90 90 74 98 . .88 CATTLE: The cattle feeding situation looks bright for Nebraska feeders, according to a report from the Division of Crop and Live Stock Estimates at Lincoln. The state has 8% more cattle on feed than last year. All other corn belt states except South Dakota show decreases. Missouri reported a decrease of 7% and Kansas 15%. The long grass pasture outlook in the Osage Country of Oklahoma and the Flint Hills of Kansas was reported more promising than for many years, though it was estimated that only 80% of the Osage pasture and 60% of the Flint Hills pasture had been leased by April 1. Lease prices ranged slightly lower than last year, though widely varying according to location and quality of grass. The movement of cattle from Texas, New Mexico and Arizona to the long grass pastures, starting in the second week of April, was expected to fall considerably short of last year's heavy movement, according to the field report of the United States Bureau of Agricultural Economics at Topeka. The prospective curtailment of this movement was ascribed to improved range and feed conditions in the Southwest, the heavy movement last fall and general financial conditions as affecting the range live tock industry. SHEEP: Reports from Colorado placed the condition of sheep on April I at 99% compared with 101% on March I and 93% on April 1, 1923. In Wyoming the condition was 98%, as compared with 103% on March I and 88% on April 1, 1923. Light losses of early lambs were reported from both states, but generally little lambing had occurred to April I. Contracting of lambs for fall delivery was active during March at prices favorable to the producer. Wool in Wyoming was contracted during March at 40c to 41_½c, with a few contracts at slightly higher figures. About 3,000,000 pounds were contracted to April I by Wyoming flock masters. HOGS: A falling off in pork production this year is forecast by the reports from over the corn belt. A large proportion of sows marketed since last July was said to indicate a reduction in the spring pig crop, following a marked reduction in the pig crop last fall. The record run of hogs to the markets during the THt ·.M ONTHLY REVIEW winter was taken as an indication that the ·peak' of.hog production had heen passed .. Nebraska, the leading producing state of the Tenth District, reported a 12% reductiorr in brood sows on farms, following a 13. 5% reduction in brood sows last fall. ANIMAL PRODUCTS: The year 1923 recorded an increase · in the value of animal products in all of the seven states which, as a whole or in part, form the Tenth District. The yeaes -total of $1,240,100;000 of animal products is equal to 87.6% of the tot.al value of farm crops in these states. The U.S. Department of Agriculture figures on the value of animal produc_ts for 1923 and 1922 follow: 1923 Colorado .................................... $ 96,6oo,ooo Kansas ...... _ _ _ _ _ __ 287,400,000 372,500,000 Missouri·-············---Nebraska................ _ _ __ 260,500,000 New Mexico... ~····-·-· _ _ 33,800,000 Oklahoma ...... __________ l 52,000,000 Wyoming...................................... 37,300,000 Increase _1922 f, ·89,300,000 f, ·7,300,000 21,200,000 266,200,000 27,700,000 344,800,000 241,200,000 , 19,300,000 2,500,000 31,300,000 11,200,000 140,800,000 2,800,000 34,500,000 Animal Products·-··-················•··f,1,240,100,ooo *Farm Crop · ··:··'········ 1,414,300,000 f,1,148,100,000 I ,283,371,000 f, 92,000,000 130,929,000 Total Farm Products·---···········f,2,654,400,ooo *--Omitting crops fed to live stock. f,2,431,471,000 f,222,929,000 MARKET MOVEMENTS: The supply of cattle and calves at the six markets of the Tenth District was larger during March than in the previous .month and the corresponding month last year. The month's market supply of hogs was 16.9% below the total in March 1923. Marketings at the six markets were the smallest since last November. Arrivals of sheep during March were 5.5% greater than in February but were II.I% less than in , the corresponding month last year. Receipts of horses and mules were 27.7% less than in February and 20.9% less than in March 1923. Receipts at the six markets are here shown: Cattle Calves Kansas CitY·--·································127,130 Omaha ......•.......:........................•...... 142,288 St. Joseph. ....................... 44,580 Denver.......... ······•··, 26,669 Oklahoma City..... I 5,114 Wichita·--···························· ·· ........... 19,061 21 ,537 (i,533 6,446 3,168 5,082 3,875 Hogs Sheep *295,515 90,094 428,282 197,520 171,766 108,157 45,828 .169,797 27,516 448 1,809 57,79 1 March, 1924·----·····························374,84'2 46,641 1,026,698 567,825 February, 1924................................342,272 45,271 1,039,019 538,278 March, 1923 ..................................... 372,960 44,376 1,236,195 638,783 *-Includes hogs received at packers yards. Horses Mules 2,613 1,062 878 2,623 . 633 1,404 9,213 12,743 II,648 The countryward shipment of stocker and feeder cattle and hogs during March was slightly below that of February, and 7 also below · that of March last year. Countryward shipments of calves were 27.9% greater than during the previous month but 32.1% less than in March last year. Shipments from the markets to the country -of sheep also showed a perceptible decline. The total shipments to the country from four markets for which reports are available were: Cattle; 80,904; calves, 3,650; hogs, 23,629; sheep 49,232. · Meat Packing Purchases of cattle by meat packers at the six markets during March were 7% greater than in February and 3.5% less than a year ago. Their purchases of calves fell 4.7% below the previous month but were 10.7% greater than last year. There was a decrease of 22.5% in the number of hogs purchased for slaughter in March from the total purchased in March 1923. Purchases of sheep fell off 3.5% and 17.2%. Purchases by packers at the six markets: Kansas CitY·----···· Omaha...•......... St. Joseph ...•.. Denver Oklahoma City.. Wichita................... Cattle 71,416 86,964 .. 26,632 9,3-56 .......... 7,680 5,191 March, 1924...'. .... ··············· 207, 239 February, 1924....... ....... 193,733 March, 1923 ...... 2 14,743 *-Includes hogs received at Packers Yards. Calves 17,822 3,934 5,556 1,710 4,483 2,403 35,9o8 37,665 32,440 Hogs *200,119 326,812 115,221 39,324 22,II2 53,345 Sheep 73,262 142,196 85;692 16,239 76 1,519 756,933 756,321 977,035 318,984 330,638 385,2 95 Total stocks of pork and lard at Kansas City reported as of March 31, 1924;were 53,771,300 pounds, an increase of 3,614,600 pounds over the total on February 29, but were 13,216,500 pounds less than on March 31, 1923. Mining ZINC AND LEAD: Market prices of both zinc and lead ores in the Missouri-Kansas-Oklahoma district declined during March. The month opened with zinc ore selling at $43 per ton and closed at $41 per ton. Lead ore opened at $125 per ton,held steady for two weeks, then dropped by degrees until at the close of the month the selling price was $I IO per ton. Shipments of zinc ore during March aggregated 84,594 tons, a weekly average of 16,919 tons, which to the end of March was the largest weekly shipment this year by over 2,000 tons. The _average price during the month was $41.50 and the total value of the zinc ore shipped amounted to $3,5u,070. This compares with a weekly shipment in. March 1923 of 18,837 tons and an average price of $48.15 per ton. AVERAGE PRICES OF LIVE STOCK AT KANSAS CITY (United States Department ef Agri.:ulture Reports} Week Week Slaughter Cattle March 24-29, 1924 ·March 26-31, 1923 Steers (1100 l.bs. up) . $II.l2 Choice and prime·---······························· f, 9-7° ·Good·......................................... ·.............. . 10.12 8.88 8.62 8.16 Medium ... - - - Common ................................................... . 6.88 7.18 Light Canners and Cutters ..................... . 4.00 4.38 Stocker and Feeder Cattle . 6.88 Steers Common to choice·-········-··········· 7- 24 Cows and Heifers, common to choice ... 4.12 . 4.80 Hogs . Top ................. ---························ 8.35 7.35 8.16 7.11 Bulk of Sales·-·············· · · - - - - · · Sheep and Lambs ' Light and handy weight, medium ~pr ..... 1 5-34 13.61 Yearling 'wethers, medium -pr.............. . 10.18 8.98 Lead ore shipped from the district amounted to 9,804 tons at an average price of $119.85, which compares with $II8.87 for the month of March, 1923. While the price of zinc ore was $6.65 lower than for the month of March 1923 the local condition was very much better in respect to surplus zinc on hand. Surplus stocks were lower than for a long time, being estimated to be in the neighborhood of 32,000 tons. Last year at the end of March the surplus was over 60,000 tons. There was some certailment of zinc production during the n:ionth, several properties closing down entirely for a week and others mining only their lead ground. Considerable damage was caused to the mills of the district by a severe wind storm which also served to curtail production to a small degree. 8 THE , MoNnILY REVIEW BITUMINOUS COAL: Production of soft coal at the mines in six S0uthwestern states averaged 56.5% of full time capacity as compared with 53% of full time capacity during March 1923. Of the six mining states only New Mexico reported operations below 50% of capacity. Loss of operation during the month was charged principally to "no market." Loss due to mine disability, strikes, labor shortage and transportation disability was slight. The market situation in the Southwest, however, was better than east of the Mississippi river where, according to the United States Geological Survey reports, the mines in 22 out of 23 districts were shut down more than 50% of full time on an average. Per cent of loss of operation to full time capacity, due to various causes, is shown for the month of March for each state in the following table: Colo. Kans. Loss due to: Transportation DisabilitY·--··················· 6.9% 0.4% Labor Shortage.................. ---3.3 Strikes ........... Mine Disability................ 3.8 8.9 No Market........................31.6 21.5 Mo. N.M. Okla. Wyo. o.8% .... % 0.5 % I.I 0.2 3.0 3.0 7.7 0.2 3.1 0. 5 63.1 31.4 37-4 3 2 •5 Dist. 1.4% I.2 1.8 2.8 36.3 -- -- -- -- -- -- -- Total Loss, all Causcs._.;;:.42.3% 34. 1 % 38.7% 63.3% 49.8% 3 2-7% 43.5% 50.2 Per cent production .......... 57.7 61.3 67.3 56.5 36.7 65.9 Production of soft coal in the United States during the first 82 working days of 1924 (January 1 to April 5) was 141,841,000 net tons, 'which was 4,470,000 tons less than were mined in the corresponding period in 1923, but 5,597,000 tons more than were mined during a similar period of 1922. The expiration on April 1 of contracts between miners and operators and their failure to reach an agreement on new contracts brought a suspension of operations in Missouri, Kansas and Oklahoma mines of the Southwest Coal Operators Association. METAL MI I G I COLORADO: With the passing of winter metal mining in Colorado is progressing at an unusually high rate of activity and with prospects of a larger production than. last year. Mines operated during the winter showed a perceptible increase in ore production 'during the first quarter of 1924 over the corresponding three months in 1923, while mines that were closed during the winter were resuming operations early in April and generally on a larger scale than for several years at the sprin,g season. Activity has been greatly stimulated by the use of modern mining and milling machinery by which low grade ores which in former years could not be mined profitably are now being mined and milled with profit. Thus, in addition. to an increased output of ores from the mines, an enormous tonnage of low grade complex ores are moving from mine dumps to the smelters to be milled. Petroleum Gross production of crude oil in Oklahoma, Kansas, Wyoming and Colorado during March was at a daily average of 597,663 barrels, which was 15,951 barrels per day less than ih February and 17,848 barrels per day below the daily average in March 1923. Total production of 18,527,550 barrels during the month exceeded that in the 29 days of February by 732,550 barrels or 4.1%, due to March having two more days than February. Compared with March of last year, however, there was a de- crease of 553,450 barrels or :i.9%. The lower daily average for March than that for February was generally attributed to the severity of the winter weather during a part of the month. The following shows producti'on (barrel~) in the four states. •March, 1924 Oklahoma .............................................. ! 2,638,550 Kansas.................................................... 2,146,600 Colorado.................................................. 8,100 Wyoming................................................ 3,734,300 ••Feb., 1924 11,880,000 2,106,000 7,700 3,801,300 . 17,795,000 Total.. ...................................................... 18,527,550 -*Mar. 1923 13,513,000 2,503,000 5,400 3,o59,6oo 19,08 I ,ooo . •- Estimated, American Petroleum Institute. ••-Official, U.S. Geological Survey. March reports reflected an increase over February in the number of wells completed and also an increase in new wells drilling, though the March totals fell below those for March, 1923. Field operations in three states: Wells Completed Oklahoma......... - .................................... -419 Kansas ........................................·-········· 77 Wyoming·- -········:--·································· 30 Bbls. Daily New Prod'n 8-4,578 3,901 7,595 March, 1924............................................ 526 February, 1924........................................496 March, 1923............................................652 96,074 127,640 . 13 1 ,797 Rigs-Wells Drilling 1,402 289 42 9 2,120 1,895 2,617 During a four weeks period ending March 29 eighty-six refineries in operation in Kansas and Oklahoma produced 78,470,804 gallons of gasoline, the largest production for a like period during the current year. Finished stocks reported by the 86 refineries-24 in Kansas and 62 in Oklahoma- on March 29 were: Gasolene 123,378,828 gallons, Kerosene 14,223,223 gallons, gas and fuel oil 60,271,692 gallons. Compared with totals reported March I these figures indicate increases of 22,340,788 gallons of gasolene, 2,794,489 gallons of kerosene and 2,015,973 gallons of gas and fuel oil. Steel Tank Manufacturing Manufacturing of steel tanks, although not up to capacity, was quite satisfactory during the first three months of 1924, according to reports from the largest concerns in the Tenth District. Sales of tanks for oil during the quarter year were about 85% of last year's sales for a similar period, though it is recalled that business during the first quarter of 1923 was going at high rate and declined somewhat during the remainder of the year because of the decrease in crude oil prices. The recent improvement in crude oil prices, however, has favorably affected the storage tank trade. Stock tank sales were dull during the early part of the year and dealers' stocks were low, but with the ~oming of warmer weather there was some improvement in this line of trade. Employment With a resumption of outdoor work there is a general absorption of unemployed men in cities throughout the Tenth District. Building operations are giving employment to large numbers of mechanics and while the activity is not up to that of a year ago there i~ a vast amount of repair work and small improvements THE MONTHLY REVIEW which is keeping practically all skilled workers busy. Miners in the Tenth District are busy, save the Union coal miners in Missouri, Kansas and Oklahoma whose contracts expired April 1 and who were idle pending negotiations for new contracts. Factories are employing normal forces. · While no acute shortage of farm labor is reported, there is indicated a general scarcity of efficient farm help. In Nebraska most of the counties reported sufficient farm labor. There were more complaints as to the quality of farm labor than quantity. Experienced farm hands were in demand in Kansas with wages for reliable farm hands at $30 to $35 per month with board. In Colorado there was no labor shortage reported. Building Spring building was checked by severe weather conditions during March though at the beginning of April the season's operations were fairly under way. The number of permits issued during March in eighteen cities was 2,968, the largest number of permits issued in any month since last September, but 273 or 8.4% below the record of March 1923. The estimated cost of construction of buildings for which permits were issued in March was $9,186,617. This was the largest month's estimated cost of construction since last October. It exceeced the February total by $2,548,392 or 38.4%, but fell short of the total for March 1923 by $2,1i6,458 or 18.7%. The building reports from eighteen cities: · Permits Estimated Cost % Change Casper, Wyoming.-................................................. Cheyenne, Wyoming.............................................. Colorado Springs, Colo .. - -···v································ Denver, Colorado...__ _ ................................. Hutchinson, Kansas·--··········································· Joplin, Missouri---···································· Kansas City, Kansas.............................................. Kansas City, Missouri ..·-- ····································· Lincoln, Nebraska...................... - - Muskogee, Oklahoma............................................ Oklahoma City, Oklahoma.-................................. Okmulgee, Oklahoma............................................ Omaha, Nebraska.--··············································· Pueblo, Colorado.................................................... St. Joseph, Missouri .............................................. Topeka, Kansas ...................................................._ Tulsa, Oklahoma.................................................... Wichita, Kansas ...·--········································· ... 83 $ 33 141 648 43 36 242 415 195,5 2 9 -o.8 45, 1 65 176,565 -51.6 11.9 2,112,800 12.4 61.675 531,200 13·9 9,z6o.3 20 480,183 2,377,700 228,785 26,980 164 234,397 10 18,150 -8o.o -84.5 239 903,6 1 3 -20.1 104 145,270 104 138 220,450 99.8 -4l.3 184,096 -36.6 95 -23.3 -20.7 -31.8 -85-1 195 851,845 2.1 258 392/214 -49.7 Total, March, 1924--............................· - ---"',968 Total, March, 1923·----············ ........3,241 $ 9,186,617 -18.7 n,303,075 The number of permits issued in the eighteen cities during the first three months of 1924 was 6,534, or 1,192 less than for a similar period in · I 923. Estimated cost of construction, totaling $21,279,769, were $4,531,940 or 17.5% less than last year. Building Materials LUMBER: Retail lumber trade throughout the Tenth District was very materially hampered during March by unfavorable weather and bad roads. Sales at yards in cities showed fair activity, due to the early rush of building, but the volume of business did not come up to that of March last year. In country districts roads were in such poor condition as to interfere with the farm trade very materially and sales were about 20% below those of a year ago. Stocks in retail yards were about 5% below normal in country towns and at about normal in cities. 9 One hundred and forty-one yellow pine mills reported production of 78,539,329 feet of lumber during the week ending March 28, which was 8,633,896 feet of 9.9% below normal production. Shipments during the week were 76,203,540 feet, this total being 10,969,685 feet or 12.58% below normal production. Orders received during the week were for 74,135,040 feet, 13,038,185 feet or 14.96% below normal production. CEMENT: With practically all plants operating at the beginning of April, shipments at that time were reported smaller and stocks larger than at the corresponding time last year. Manufacturers were anticipating a good year for cement, but it was not expected that the volume would reach the high record attained in 1923. Prices are firm and little change has been made in production cost. Country dealers are consuming from 60% to 65% of the output of mills in this District, and they report farmers are building more dairy barns and poultry houses and fewer hog houses. Road construction is taking but a small per cent of the output. BUILDING BRICK: Practically all plants in the District were in operation by April 1 and manufacturers reported a satisfactory outlook for the year though possibly not equal to the exceptionally large output of 1923. There is larger rural construction in prospect, particularly school buildings, but building in cities is not expected to be as active as it was last year. Prices are unchanged and production costs seem to have been stabilized. PAINT: Sales during the first quarter of 1924 are far ahead of those for the same period of last year. In cities and towns the demand for paint has been very heavy for interior work incidental to house cleaning and redecorating, with outside painting starting in April. Manufacturers are reporting an exceptionally large country paint business for this year because painting was delayed during the War and post-War period and farmers have not been able to make up the loss. The tendency of prices is reported upward, but manufacturers are hesitating about making advances. The demand for linseed oil has continued active through months heretofore considered as a dull season and prices have advanced during the first quarter of the year. GLASS: Sales of glass are not up to a year ago and stocks on hand are in excess of the current demand. This has had the effect of weakening prices to some extent. Manufacturers in the Tenth District are anticipating a large business this year, for which the competition is very keen. Some of the plants in the District are now in operation while several others had not started up at the middle of April. The large plant at Cheney, Kansas, was destroyed by fire in April. Glaziers were demanding a 2.5% increase in wages and employers were disposed to meet them halfway, considering the 25% increase too large to absorb at once. PAVING BRICK: Plants resumed operations in the forepart of April. Stocks on hand were unusually large and a decline in construction was reported in all states except Oklahoma and Texas. Weather conditions were the worst in many years and were generaly blamed for the slowing down of road construction and improvements. However, a vast amount of highway building i_s contemplated in the Southwestern states and while a large part of the work planned will probably not be done this year, the manufacturers of paving brick were inclined to regard the season's outlook as only fair THE M ONTHLY REVIEW IO Business Conditions in The United States Production of basic commodities decreased during March, and there was a recession in wholesale prices. Distribution both at wholesale and retail showed less than the usual seasonal increase and was smaller than a year ago. PRODUCTION: The Federal Reserve Board's index of production in basic industries, adjusted to allow for length of month and other seasonal variations declined 3% in March. Output was reduced by most industries and the decreases were particularly large in mill consumption of cotton and production of bituminous coal and copper. Daily average production of steel ingots, however, was larger than in any previous month. The level of factory employment was unchanged, but some curtailment in working hours was evidenced by a decline of 1% in average weekly earnings. 1923, and merchandise stocks at the end of the month were larger than a year ago. 8% Sales of mail order houses also showed less than the usual seasonal increase in March. Decrease in the volume of purchases at retail compared with last year is partly accounted for by the late Easter and the generally unfavorable weather conditions. PRICES: Wholesale prices, as measured by the Bureau of Labor stat istics index, decreased slightly more than 1% in March and were 6% lower than a year ago. Prices of farm products, foods, clothing, chemicals, and house furnishings declined, building materials remained unchanged, while fuel and metals were slightly higher than in February. During the first three weeks of April quotations on pig iron, lead, coal, silk, and sugar declined, while prices of wheat, corn and cotton advanced. Contract awards for new buildings in March reached the highest total value on record, owing -chiefly to a large increase in the New York District. BANK CREDIT: Volume of borrowing for commercial purposes at Member Banks in leading cities, after increasi% during the early part of the year, remained constant at a higl1 level between the middle of March and the middle of April. During Estimates by the Department of Agriculture, on the basis of · the four weeks period total loans of these Banks were in larger condition on April 1, indicate a reduction of 4% in the yield of volume than at any time in more than two years. winter wheat and of 6% in the production of rye as compared with the final harvests in 1923. Discounts and investments of the Federal Reserve Banks, TRADE: Shipments of commodities by railroads declined each week in March and car loadings were 4% less than a year ago. Wholesale trade increased slightly during March but was 8% less than a year ago, owing to decreases in sales of dry goods, shoes and hardware. March sales of department stores were 8% less than in March which on April 2 were slightly above '/,I ,000,000,000, declined by about $125,000,000 during the first three weeks in April to the lowest point for the year. This decline represents a reduction in discounts and in the holdings of acceptances, while the volume of government securities increased somewhat. Money rates in the New York market during the first three weeks in April were at about the same level as in the latter part of March. Prime commercial paper was quoted at 4,½ percent and 90 day bankers acceptances at 4 percent throughout the period. THE MONTHLY REVIEW II WHOLESALE PRICES PRODUCTION IN BASIC •NDUSTRIES PfflCfNT 1$0 300 200 so i-----t---+---+----..---'---~ 50 o.________..,___...___.....___,___~o 1919 1920 1921 1$.22 1923 PEA CE14 PfACEll'T 300 ,... ~ ~ '\ ... - ---- .... ,oo 100 0 0 1924 1920 191~ COMBINATION OF 22 INDIVIDUAL SERIES FOR SEASONAL VARIATION 200 t921 1922 1923 1324 INDEX NUMBERS OF WHOLESALE PRICES U. 5. STATISTICS OF LABOR (1913-100 BASE ADOPTED BY BUREAU) (1910-100) DEPARTMENT $TOR£ SALES MEMBER BANK CREDIT l't"UIIT BILLIONS 200 OF OOLU~ 61LLION!. 16 o,- DOLLARS 16 12 o.______....._____________ 1919 19ZO ,sa, 19.22 o 1121 1919 1920 1921 1922 192) INDEX OF SALE OF 333 STORES IN 117 CITIES 800 MEMBER BANKS IN LEADING CITIES IN U.S. OF THE UNITED STATES (1919-100)