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THE MONTHLY REVIEW QI .A.gricultural, Industrial, Trade and Financial Conditions in the Tenth Federal Reserve District FEDERAL RESERVE Vol. 18 KANSAS BANK CITY, Mo., MAY OF KANSAS CITY No. 5 1, 1933 N BUSINESS IN THE TENTH FEDERAL RESERVE DISTRICT EARLY all classes of business and industry were affected by the bank holiday in March, but the rePercentages of Increase, or Decrease (-), for March 1933 over February sumption of banking was accompanied by a decidedly 1933 and March 1932 and for the first three months of 1933 over the like period improved morale, which, in this District, has been further in 1932. strengthened by the sharp advance in grain prices. The upMarch 1933 3 Mos. 1933 ward surge in grain prices carried quotations on all classes, as Compared to Compared to of April 20, to or above the prevailing levels of a year ago, Banking Feb. 1933 Mar. 1932 3 Mos. 1932 Payments by check ...... _ __ -20.0 - 8.1 -23.0 · with wheat 10 cents per bushel higher. -16.1 Federal Reserve Bank clearings.............. - 2.1 -21.5 Aside from the improvement in prices of grains, agricultural Business failures, number....................... . -22. 5 -43.6 -33.3 commodity prices have failed to record any substantial gains, Business failures, liabilities...................... -12.7 -28.8 -54-9 although at present they are somewhat above the recent lows. Savings deposits, 45 selected banks·-····· - 4.5 - 11.7 Savings accounts, 45 selected banks ...... - 2.0 - 5.9 Marketings of all commodities were somewhat restricted in March and were comparatively light, although in some inDistribution stances exceeding last year's volume. Wholesalers' sales, 5 lines combined ...... 12.8 -17.6 -l4.9 The condition of fall sown grains showed further deterioraRetailers' sales, 32 department stores... . -22.5 -22.7 18.3 -o.6 tion in March. The April 1 condition of winter wheat, reported Lumber sales, 1 57 retail yards ................ 8.6 - 9.7 Lite insurance written _ _ _ __ -'l5.o - 0.3 - 1 9.9 by the United States Department of Agriculture as the lowest of record, indicates heavy abandonment and promises a harvest Construction for the seven Tenth District states of but u6,014,ooo bushels, Building contracts awarded, value. ___··· -4o.9 75.9 Residential contracts awarded, value.... the smallest since 1904. Rye prospects are also poor. Spring 76.8 -47.6 Building permits in 17 cities, value........ -14.1 -48.7 planting operations have been retarded somewhat by cold weather and frequent rains in the eastern part of the District Production Flour_ _ _ _ _ _ _ _ _ __ and by inadequate moisture supplies in the western part. 2.6 0.4 17.8 0.2 Sales of merchandise at both wholesale and retail increased 15.8 9.2 Crude petroleu"'-------Soft coaL ................ _ _ _ _ _ __ -32.4 -16.0 -26.3 by about the usual seasonal rate in March. Compared to 1932, Zinc ore (shipped) Tristate District...... -41.0 4.4 75• 2 the dollar volume of March and first quarter sales at thirty-two 23·7 Lead ore (shipped) Tristate District...... -20.6 -35.6 Cemen.__ _ _ _ _ _ _ _ _ _ _ department stores declined over 22 per cent, with declines for -33.9 4.5 55-4 the five reporting wholesale lines, combined, averaging 17.6 receipts, 5 markets per cent for the month and 14.9 per cent for the three months. Grain Whea..___ _ _ _ _ _ _ _ __ -00.2 -27.2 6.4 Production of flour, crude oil, and cement was larger than 28.8 -20.5 -3 2 .5 Corn .... ----··········-······················ Oats. _ __ _ _ _ _ _ _ one month or one year earlier, whereas, that of bituminous 20.2 -7.0 48.2 1 51.9 -27.2 coal was smaller. Shipments of zinc ore and lead ore declined 427.4 Rye .......... Barley __________ _ -17.9 -(,7.7 -53.o during the month but exceeded the March, 1932, totals. OperaKa fir _ _ _ _ _ _ _ _ . -(,1.3 -(,3.6 18.5 tions at meat packing establishments were stepped up during Livestock receipts, 6 markets the month, but packers purchased less livestock of all species Cattle .......... _ _ _ _ __ -16.6 - 9.6 than a year ago. Building activity remains dormant, although -5-4 Calve:s...._ _ _ _ __ 12.3 -10.5 - 5.3 there were some seasonal gains reported for the District as a Hogs ........ _ _ _ _ _ __ -19.8 -11.7 -4-5 whole. -15.1 22.3 - 1 9.7 Sheep.... - .. - - - - - - - - Business insolvencies in this District in March and the first - 8.o -36.4 Horses and mules .............• - - - ~ - -10.9 three months of 1933 were less numerous, and total liabilities packing, 6 markets involved were smaller than in any corresponding month or Meat Cattle _ _ _ _ _ _. _ _ _ __ - 8.6 4.0 -7-4 three months in recent years. Calve,,___ _ _ _ _ _ _ _ __ -10.4 -14.1 13.0 Financial Hogs _ _ _ _ _ _ _ _ _ _ __ Sheep .......... - - - - - - - - - - A sharp reversal of currency and credit trends following the reopening of the banks on March 13, 14, and I 5 is strikingly Stocker and feeder shipments, 4 markets evidenced by a comparison of the weekly condition statements · of this bank and branches. In the four weeks ended April 12 Hogs .. ------······················· gold reserves declined 19.7, bills rediscounted for member Sheep ........ -----························ This Copy Released For Publication In Morning Newspapers, April 29. ~:~!~e. --------- 0 .1 23.0 -26.2 -31.8 -6.o -16.4 3.2 2.0 -13.6 -22.1 -13.1 - 1.6 6.9 11.4 66.9 6.3 - - 9·9 - 6.1 THE MONTHLY REVIEW banks 29, bills purchased in the open market 22.6, United States security holdings 6.5, total bills and securities 14.8, Federal reserve note circulation 17.7, and member bank reserve deposits 14.9 per cent, whereas, in the preceding four weeks ended March 15, all of the above items increased substantially. Comparisons between April 12 this year and April 13 last year disclose large increases for all of the principal items except bills discounted, which are 33.9 per cent less. Changes in four weeks and fifty-two weeks, in the principal resource and liability items of the Federal Reserve Bank of Kansas City and branches, are shown in the following: April a, 1933 Mar. 15, 1933 April 13, 1932 Gold reserves·-································· '/,112,839,569 '/,140,581,986 $ 88,806,514 Reserves other than gold·--··········· 7,728,095 3,299,262 7,147,479 Total reserves.................................. 120,567,664 143,881,248 95,953,993 Bills discounted·--··························· 21,895,491 30,852,109 33,125,677 Bills purchased................................ 6,868,826 8,879,272 2,292,904 U. S. securities................................ 57,220,100 61,220,100 24,935,600 Total bills and securities................ 85,984,417 100,951,481 60,354,181 Total resources................................ 234,607,445 273,213,395 184,339,312 F. R. notes in circulation.............. 123,219,525 149,699,955 81,168,535 Member banks' reserve deposits._. 74,797,916 87,937,480 68,056,236 The discou nt rate of the Federal Reserve Bank of Kansas City, on all classes of paper and all maturities, remained unchanged at 3½ per cent. Commercial Failures There was a decided reduction in business insolvencies in this District and the United States in March, both as to the number of defaults and the amount of liabilities involved. A comparison of the reports of Dun and Bradstreet, Inc., reveals that March and first quarter failures in this District were less numerous than in any like month or three months since 1921, with liabilities for both periods the smallest since 1926. March and first quarter failures in the United States and this District were below the ten-year average. Tenth District liabilities were below, whereas, United States totals were slightly above the average. Business failures in the Tenth District and the United States as reported by Dun and Bradstreet, Inc.: TENTH DISTRICT Number Liabilities March 1933 .......................... 79 '/, 1,359, 139 102 1,556,459 February l 933·-··················· March 1932 ..:...................... . 140 1,908,380 2 95 Three months 1933·--········· 4,757,8 13 442 10,551,658 Three months 1932·-··········· UNITED STATES Number Liabilities 1,948 '/, 48,500,212 2,378 65,576,068 2,951 93,760,311 7,245 193,176,882 9,141 275,520,622 Reserve Bank Clearings Check collections through the Federal Reserve Bank of Kansas City and branches at Denver, Oklahoma City, and Omaha totaled 3,708,108 items representing $492,2n,ooo in March. These totals indicate an increase of 4.1 per cent in the number of items handled and a decrease of 2.1 per cent in the amount as compared to February, and decreases of 28.9 per cent in number and 21.5 per cent in amoun~ as compared to March, 1932. First quarter collections were 23.8 per cent smaller as to the number of items handled and the dollar amount was 16.1 per cent less than in 'the first three months last year. The clearings figures follow: January ............ February .......... March·-············· Three months .. ITEMS 1933 1932 3,708,108 4,535, 143 3,328,098 4,372, 154 3,465,068 4,875,141 10,501,274 13,782,438 AMOUNT 1933 '/, 492,2n,ooo 443,410,000 434,091,000 '/,1,369,712,000 1932 '/, 572,052,000 506,516,000 r553,048,ooo $1,631,616,000 Bank Debits The volume of debits to individual accounts for the five weeks ended April 5, as reported by banks in twenty-eight leading cities of the District, declined 8.1 per cent as compared to the five weeks ended March I this year and 23 per cent as compared to the five weeks ended April 6, 1932. Cumulative payments by check for the first fourteen weeks of the current year were 20 per cent less than a year ago. Many checks written during the bank holiday were of small denominations and a majority, circulating as a medium of exchange, carried an unusual number of endorsements. Check payment figures below: Albuquerque, N. M.·--··············· Atchison, Kans _ _ _ __ Bartlesville, Okla.·--··················· Casper, Wyo.·--··························· Cheyenne, Wyo ........................... Colorado Springs, Colo .............. . Denver, Colo .............................. . Enid, Okla .................................. . Fremont, Nebr............................ . Guthrie, Okla ............................... Hutchinson, Kans ..................... Independence, Kans .................. . Joplin, Mo ......... _ __ Kansas City, Kans ..................... Kansas City, Mo •........................ Lawrence, Kans ...... _ _ __ Lincoln, Nebr.. _.......................... . Muskogee, Okla .......................... . Oklahoma City, Okla................ . Okmulgee, Okla •.......................... Omaha, Nebr.............................. . Pittsburg, Kans •.......................... Pueblo, Colo.·--··························· Salina, Kans ................................. St. Joseph, Mo _ _ _ _ __ Topeka, Kans.·--························· Tulsa, Okla _ _ __ Wichita, Kans ............................ . Total 28 cities, 5 weeks ........... . Total 28 cities, 14 weeks ........... . FIVE WEEKS ENDED April 6, 1931 April 5, 1933 t, 6,714,000 8,542,000 $ 3,286,000 2,319,000 16,863,000 16,178,000 3,430,000 5,430,000 4,196,000 5,183,000 12,022,000 10,577,000 I I I ,628 ,ooo I 32,674,000 7,019,000 5,639,000 1,573, 000 2,849,000 1,448,000 923,000 8,138,000 9,206,000 1,373,000 6,970,000 6,008,000 6,786,000 8,907,000 12,237,000 208,064,000 274,466,000 2,849,000 3,850,000 17,937,000 26,253,000 7,441,ooo 5, 239,000 57,806,000 69,846,000 2,6o8,ooo 1,627,000 133,754,000 97,900,000 2,924,000 3,739,000 14,600,000 10,531,000 6,951,000 4,938,000 20,098,000 28,336,000 13,968,000 14,697,000 76,431,000 55,434,000 26,463,000 35,822,000 Per cent Change -11.4 -:29.4 4.1 -36.8 -19.0 -1'.l.O - 15.9 - 19.7 -44.8 -36.3 -11.6 -80.3 -u.5 -'J.7.2 -'J.4.1 -'1.6.o -3 1 .7 -'J.9.6 -17.1 -37.6 --26.8 -11.8 -'J.7.9 -29.0 -19.1 5.1 - 17.5 -16.1 t, 7 14,795,000 $ 927,896,000 -'J.J.O 2,217,384,000 2,770,082,000 -20.0 Savings Deposits to savings accounts in forty-five selected commercial and savings banks in cities of this District declined 4.5 per cent between March I and April 1, and the total, as of the latter date, was 11.7 per cent below that reported by the identical banks on April 1, 1932. Reductions of 2 per cent for the month and 5.9 per cent for the year in the number of savings accounts were also reported. The number of savings accounts and the amount of savings deposits, as reported by the forty-five banks, are shown in the following table for the three dates under review: Savings Accounts April 1, 1933 .................... _ _ _ _ _ 361,810 ~pa~~~.~;;Jl.~:::::::::::::::::::::::................... ~:::~ Savings Deposits $ 98,953,941 ~~;:~~~:~:; Trade Department store sales for March, as reported by thirty-two stores in this District, showed about the normal seasonal increase, 18.3 per cent, over February, but were 22.7 per cent below those for the corresponding month a year ago. Sales are based on the dollar volume and the decrease, as compared to last March, reflected in part lower prices and the fact that Easter, which fell on April 16 this year, was twenty days earlier last year. Dollar sales during the first quarter of 1933, were THE MONTHLY REVIEW 3 RETAIL TRADE AT 32 DEPARTMENT STORES IN THE TENTH FEDERAL RESERVE DISTRICT SALES STOCKS (RETAIL) ACCOUNTS RECEIVABLElj COLLECTIONS Stores March 1933 3 Mos. 1933 March 31, 1933 STOCK. TURNOVER March 31, 1933 March 1933 Report- Compared to Compared to Compared to March 3 Months Compared to Compared to ing March 1932 3 Mos. 1932 Feb.28,1933 Mar.31,1932 1933 1932 1933 1932 Feb.28,1933 Mar.31,1932 Feb. 1933 Mar. 1932 Kansas City........ 4 -26.1 -24.1 o.6 -20.3 .16 .17 .45 .48 2.1 -10.8 -18.7 -25.6 Denver_ _ _ 4 -17.1 -22.4 4·3 -23.8 .24 .22 .62 .62 3.7 -16.6 -10.9 -27.0 Oklahoma City._. 3 -21.5 -27.1 -24.3 -24.3 1.7 -35.3 .29 .25 .81 .69 - 4.4 -19.6 -13.1 -13.7 - 2.3 -22.5 .34 .31 1.12 1.05 2.0 -15.1 - 9.2 -22.9 Tulsa ...·-·············· 3 Wichita ................ 3 -19.8 -22.0 1.7 -43.8 .29 .21 .62 .55 4.4 -30.0 - 4.8 -40.1 Other cities .......... 15 -27.1 -22.9 3.6 -18.0 .22 .24 .62 .65 0.2 -1 4.9 - 5.4 -21.7 .60 I.2 -16.5 -12.1 TotaL ___ ············· 32 -22.7 -22.5 2.2 -23.5 .22 .22 .60 NOTE: Percentage of collections in March on accounts February 28, all stores reporting 31.7. Collections same month last year 35-5- 22.5 per cent less than in the first quarter of 1932. March and first quarter sales have shown four consecutive declines, those of 1933 compared to 1932 being the largest. Inventories were enlarged 2.2 per cent in March, or slightly less than the usual seasonal amount, and stocks as of March 31 were 23.5 per cent smaller than one year earlier, thus recording the seventh consecutive and most severe decline in annual comparisons. Collections for March totaled 31.7 per cent of amounts outstanding February 28. This collection figure compares with 32.1 per cent for the preceding month and 35.5 per cent for the corresponding month last year. Wholesale distribution of merchandise in this District in March, as indicated by the reports of a number of representative firms in five reporting lines, increased substantially. The 1 1 .9 per cent increase in dollar sales of dry goods was somewhat larger than usual, whereas, increases of 14.2 per cent for furniture and 2.8 per cent for drugs were somewhat smaller. Sales of groceries and hardware displayed about normal strength, increasing II.6 and 30.4 per cent, respectively. All lines reported their dollar volume as substantially short of that of March, 1932, declines being as follows: dry goods, 17.4; groceries, 12.5; hardware, 16.5; furniture, 34.8; and drugs, 20.6 per cent. Inventories, except those of groceries, were reduced in March and stocks at the close of the month were considerably smaller for all lines than on March 31, 1932, the combined reduction being I 5. 5 per cent. Lumber A sub-normal increase of 8.6 per cent in the sales of lumber, by l 57 retail yards located in cities and towns throughout the Tenth District, was reported in March. March sales were 9.7 per cent smaller than a year ago, making the fourth successive but least abrupt March to March comparison. Dollar sales of all materials increased 5.5 per cent as compared to February, but showed a loss of 22 per cent from the March, I 932, total. Stocks were reduced slightly during the month and at the close were 18.2 per cent lighter than one year earlier. Collections in March, both this year and last, were equal to 17.9 per cent of amounts outstanding at the end of Fepruary. Reporting Stores Dry geods ...................... 6 Groceries_ 5 Hardware.--················· 9 Furnitur Drugs. 5 6 February, 1933, collections averaged 19 per cent of receivables as of January 31. March totals are herewith compared with those for February, 1933, and March, 1932, in percentages of increase or decrease: Sales of lumber, board feet................................ Sales of all materials, dollars............................ Stocks of lumber, board feet.--························· Outstandings, end of month.............................. March 1933 Compared to February 1933 March 1932 8.6 - 9. 7 5.5 -22.0 - 0.7 - 18.2 2.8 -22.8 Lumber production in the United States, as reported to the National Lumber Manufacturers Association, continues at about 20 per cent of normal. Building Very little construction activity was recorded for ·this "District in March and the first three months of 1933. Seventeen reporting cities issued only about one-third of the ten-year average number of building permits, and the estimated cost of construction was but 10 per cent of normal. BUILDING PERMITS IN TENTH DISTRICT CITIES PERMITS ESTIMATED CosT 1933 1933 1932 1932 $ 17,242 $ 39, 1 90 Albuquerque, N. M.·--··············· 43 45 II,861 Colorado Springs, Colo ..- ........... 46 33,807 35 Denver, Colo ......................•........ 176,1 92 326 361 271,650 16 Hutchinson, Kans ....................... 18,660 38 13,643 16 16 Joplin, Mo ................................... 5,100 9,025 Kansas City, Kans ..................... 21,230 12,390 29 45 121,800 Kansas City, Mo ......................... 106 66,250 II7 22,862 Lincoln, Nebr..-.. 20,942 29 34 112 Oklahoma City, Okla ................. 58,666 118,354 55 Omaha, Nebr............................... 129,16o 56,605 71 51 Pueblo, Colo.·--· 18,545 51 5, 290 55 II 12,460 Salina, Kans. 3,840 13 Shawnee, Okla ............................. 2,980 2,450 3 9 22 19,16o 9,0 90 37 St. Joseph, Mo.·--······················· 2 27 75, 183 4,7 5 Topeka, Kans ...·-························· 55 Tulsa, Okla ................................... 25,868 55,010 67 56 60 2 7,75 1 Wichita, Kans ..... ........................ 18,710 53 Total 18 cities, March................ Three months.............................. 958 2,096 1,152 2,706 'f, 510,784 $ 994,907 1,728,752 2,794,865 There was, according to the F. W. Dodge Corporation, a seasonal improvement in March in residential and total building contracts awarded in the District, as a whole, but the value of total awards declined 40.9 per cent and of residential awards 47.6 per cent as compared with March, 1932. Residential WHOLESALE TRADE IN THE TENTH FEDERAL RESERVE DISTRICT COLLECTIONS OuTsTAN DINGS SALES March 1933 compared to March 31, 1933 compared to March I 933 compared to Feb. 1933 March 1932 Feb. 1933 March 1932 Feb.28,1933 March 31, 1932 -26.3 3.8 3.0 - 15.3 -17.4 11.9 - 7.4 7.4 5.3 11.6 -12.5 5.3 -20.6 20.9 - 6.5 4.8 -16.5 30.4 -22.6 8.4 -35.9 4.0 14.2 -34.8 ., _ r.9 -15.4 -12.5 -20.6 2.8 1.5 STOCKS March 31, 1933 compared to Feb.28,1933 March 31, 1932 -13.8 - 4.8 - 17.3 3.9 -15.6 - 1.3 - 1.8 -24.7 - 3.7 - 19.7 THE MONTHLY REVIEW 4 awards!during.fthe first quarter showed a reduction of 85 per cent and total awards a decline of 81 per cent as compared to the five-year average :volume for the like period. !· _ The value of residential and total building contracts awarded as reported by the F. W. Dodge Corporation: TOTAL BUILDING CONTRACTS AWARDED TENTH DISTRICT UNITED STATES 1933 1932 1933 March_____________ J 3,165,116 t, 5,354,898 '$ 59,958,500 February_______ 1,799,194 5,016,031 52,712,300 Three months... 9,129,510 14,429,621 196,026,800 RESIDENTIAL CONTRACTS AWARDED TENTH DISTRICT March·--··········· February _______ Three months __ 1933 '$ 544,991 308,188 1,800,662 1932 '$ 1,040,846 869,036 2,559,411 1932 '$112,234,500 89,045,800 286,078,700 1932 ,, 33,208,6oo 24,417,300 85,130,200 Cement TENTH DISTRICT UNITED STATES Production Shipments Stocks Production Shipments Stocks 3,684 3,510 21,298 March 1933...... 303 410 1,966 2,777 2,278 21,125 February 1933.. 195 307 2,074 March 1932_.... 290 352 2,336 4,847 3,973 20,624 3 Months 1933 715 1,041 9,4I9 8,290 3 Months 1932 1,082 864 13,844 10,484 Flour !vHlling Operating at 63.1 per cent of full time capacity in March as against 6o.3 per cent in February and 61.3 per cent in March, 1932, fl.our mills in this District increased their output of fl.our 17.8 per cent as compared to the shorter month and 2.6 per cent as compared to th.e same month last year. Production for the nine months of the crop year beginning July 1, 1932, totaled 17,729,882 barrels as against 18,785,672 for the first nine months of the preceding wheat year. Flour production at Tenth District mills as estimated from the weekly reports of southwestern mills to the Northwestern Miller: Atchison __ .. _... Kansas City Omaha ___ Salina.. _ Wichit Outsid Total southwestern mills............ United Stat....._______ Mar.1932 Barrels 120,304 105,962 154,169 195,257 867,570 Feb. 1933 Barrels 11 3,579 491,827 87,282 118,788 i74,4o9 733,465 2,026,185 5,568,721 1,719,350 4,792,656 1,974,186 5,559,195 573,5o6 Grain Marketing UNITED STATES 1933 '$ 16,021,000 n,805,300 39,777,200 Production and shipments of finished Portland cement at Tenth District mills in March were comparatively small, although the largest since November and larger than in last March. Shipments exceeded production by 107,000 barrels and stocks were reduced to the lowest levels since June. Output for the United States during March, although the heaviest of the year, was otherwise the lightest for any month in recent years. Shipments were less than production and, excluding January and February, the lightest since February last year. Inventories as of March 31 were heavier than at any time since July 31, 1932. Cement production in this District and the United States as estimated by the Bureau of Mines: Mar.1933 Barrels 129,721 anxious to sell far into the new crop year. Bulk of sales were in one and two carlots although a few round lots were booked. Few sales were made without reservations while grain trading was suspended. Flour and millfeed prices, which had advanced just prior to the bank moratorium and the closing of the grain exchanges were sharply higher at the reopening, as were grain prices. The final week of the month prices eased off somewhat, but flour closed the month with a net gain l 5 to 25 cents per barrel and millfeeds were $1 to $1.50 per ton higher. 6o4,221 68,634 149,90 1 236,375 794,751 Mills were hesitant in making deliveries during the banking emergency but, according to reports, surprisingly few cars in transit were held up as the trade was generally able to meet the financial requirements. Shipping instructions were good throughout the month and new business improved with some inquiries for prices up to December 31, but millers were not March receipts of corn, barley, and kafir at the five principal grain markets of the District were the smallest for that month in over fifteen years, and equalling but 26.2, 27.9, and 22..6 per cent, respectively, of the ten-year average. Marketings of wheat exceeded the February total by 6.4 per cent but, excluding March, 1930, were the smallest for any March since 1926 and 20 per cent below normal. Receipts of oats were larger than one month or one year ago but 54 per cent less than usual and those of rye, although the heaviest in three years, were below average. Receipts of six classes of grain at the five markets are shown in the following with comparisons: Hutchinson ___.__ Kansas City. ___ Omaha.............. St. Joseph._____ . Wichita----······ March 1933_____ February 1933.. March 1932 ..._. 3 Months 1933 3 Months 1932 Wheat Bushels 924,75° 3,5f1 , 000 448,000 240,000 501,000 Corn Bushels 1,250 645,000 425,600 382,500 18,200 Oats Bushels Rye Bushels Barley Bushels 172,000 150,000 328,000 1,500 10,500 28,000 20,800 4,800 1,750 5,665,750 1,472,550 5,326,300 2,182,650 651,500 38,500 52,900 7,300 121,400 48,200 542,000 7,779,100 1,852,400 439,500 17,309,600 6,229,350 2,191,000 43,530,650 4,839,700 2,356,000 Kafir Bushels 23,400 88,200 1,300 27,350 33,300 84,800 105,150 223,900 112,900 95,300 309,800 371,100 957,800 All grain markets were closed for nine days during the month and on resumption of business on March 16, wheat and corn prices opened at the full advance allowed under exchange regulations. Prices reacted somewhat thereafter but recovered with advances extending well into April, all deliveries of wheat establishing a season's new high on April 20. Number I hard and dark wheat was up 7 to 8 cents per bushel at Kansas City, opening at 43 to 52.½ and closing at 50 to 6o½ cents, approximately the same as a year ago although premium margins were not as wide. Trade was practically confined to the domestic market as prices were substantially above Liverpool quotations. There was a good demand for corn, especially white corn for brewing, and prices closed with a net gain of 9½ cents per bushel at 29.¼ cents for No. 2 mixed, or the highest since last September but 4 cents under a year ago. Oats advanced 3 cents to close at 20 cents as against 25 cents last year. Rye was up 9, barley 5½, and kafir 13 cents per bushel for the month, the latter closing I cent better than a year ago with rye 2 and barley 8 cents per bushel less. Agriculture WINTER WHEAT: The smallest winter wheat crop since 1904 is forecast by the United States Department of Agriculture on the basis of an April I condition of 59.4 per cent of normal, the lowest of record. A crop of 334,087,000 bushels as compared to 462.,151,000 bushels harvested last year, 787,393,000 bushels in 1931, and a 1926-1930 average yield of 589,436,000 bushels is in prospect at present. 5 THE MONTHLY REVIEW Reductions were primarily in those states whose areas or parts thereof comprise this District. Kansas, the leading winter wheat state, with a promise of but 54,747,000 bushels accounted for a loss of 51,651,000 bushels as compared to 1932 and 184,995,000 bushels as compared to the record crop of 1931. Losses were also heavy in Oklahoma, Nebraska, Colorado, and Wyoming. Prospects in Missouri and New Mexico indicate yields will be larger than a year ago but below the fiveyear average. Colorado, Kansas, and Wyoming reported the April I condition the lowest of record. Regarding conditions in that state, the Kansas State Board of Agriculture commented in part as follows: "The condition of winter wheat at 37 per cent of normal is the lowest April I condition on record and indicates a crop of 54,747,000 bushels, the smallest since 1917. While the full extent of abandonment caused by dry weather, winter-killing, high winds, cutworms, and other causes is not known at this early date, present evidence indicates that 48 per cent of the II,477,000 acres sown last fall will not be harvested. This compares with 21 per cent abandoned last year, 2 per cent in 1931, and 13.2 per cent the ten year average and is the largest since 1917 when 53 per cent of the acreage failed." i· High winds and dust storms the second week in April caused additional damage. No official estimate of abandonment will be made before May I as much depends on weather conditions the next few weeks. Seeding of spring wheat has been slow with only about half of the intended acreage sown by April I. April I conditions and estimated production of winter wheat: Colorado. ___ ... Kansas ........... . Missouri......... . Nebraska .... - .. New Mexico ... Oklahoma. __.__ Wyoming........ Seven states.-. United States. CONDITION Apr.I Apr.I 5 Yr. 1933 1932 Aver. 34 52 So 37 64 76 74 So So 59 67 83 59 79 70 49 74 79 45 74 87 48.2 59.4 67.7 75.8 78.4 79,4 PRODUCTION Estimated 1933 2,528,000 54,747,000 15,400,000 20,230,000 1,512,000 21,165,000 432,000 u6,014,ooo 334,087,000 Harvested 1932 5 Yr. Av. 4,383,000 I 5,672,000 106,398,000 l 53,186,ooo 14,851,000 18,094,000 24,600,000 59,422,000 1,320,000 2,102,000 43,626,000 52,386,000 1,100,000 1,637,000 196,278,000 462,151,000 302,499,000 589,436,000 Rye has experienced about the same unfavorable conditions as wheat, being fair to good in the eastern third of the District but otherwise unusually poor. OTHER CROPS: Planting operations in the eastern part of the District were somewhat delayed by cold weather and frequent showers in March, and in the western part by unfavorable moisture conditions which were relieved somewhat by recent rains and snows. A good general rain is needed as all areas report surface and subsoil moisture supplies at below normal. In the eastern section conditions have been favorable for grass seeding, and alfalfa and clover fields have made good growth. Planting of potatoes in the Kaw Valley and oats seeding were virtually completed, and corn and cotton pl~nting were commencing in the southern part of the District by April I 5. Sugar beet planting is under way in Colorado, Nebraska, Wyoming, and western Kansas. Indications are that this year's beet acreage will be about the same as last, with seeding somewhat earlier than usual. Canners in the Ozark region are busy contracting tomato acreage for the coming season on the basis of $6 per ton delivered, or about half the 1929 price. Practically all fruit, except peaches and apricots, came through the winter in excellent condition and the March freezes did little or no damage but checked growth, which served as a protection against late freezes. Peaches are killed in Kansas and virtually so in Oklahoma where the April I condition was reported as 8 per cent of normal, but Missouri reports considerable bloom. Dormant sprays were being applied to orchards generally the forepart of April. STOCKS OF GRAIN ON FARMS: Stocks of wheat, corn, and oats on farms in the United States on April I were, according to estimates of the United States Department of Agriculture, the largest for that date in recent years. Stocks of wheat totaled 178,354,000 bushels or 12,451,000 bushels more than a year ago but of the total approximately 25,000,000 bushels will be required for seed by the spring wheat states. There were 1,126,616,000 bushels of corn and 467,048,000 bushels of oats on farms April I this year as against 907,469,000 and 362,8 I 5,000 bushels, respectively, one year earlier. Tenth District farm stocks of oats were about the same on April I as one year earlier, but those of wheat were 43 per cent smaller and of corn 60 per cent larger. Stocks of wheat in the District represented approximately 21, corn 40, and oats 35 per cent of last year's harvest as compared to 24.5, 44.9, and 37.6 per cent reported for the United States. Stocks of wheat, corn, and oats on farms April I, thousands of bushels: WHEAT Colorado ___ ····· Kansas ............ Missouri ......... . Nebraska ........ New Mexico .. Oklahoma·--··· Wyoming........ 1933 1,005 20,245 3, 1 34 9,051 316 8,72.5 855 Seven states.... 43,331 United States 178,354 193'2. 2,827 40,778 5,987 15,178 627 9,739 5o4 CORN OATS 1933 3,185 44,409 74,602 126~563 961 18,789 198 1932 4, 295 33,75 2 58,762. 52,875 268,707 1,126,616 168,069 907,469 1 ,555 16,648 182 1933 1,523 10;026 11,342 31,160 276 5,5'2.3 193'2. 1,363 13,112 16,114 1,421 18,384 399 u,666 624 61,271 467,048 61,661 362,815 LABOR: Farm wages, the lowest in over thirty years, are about I 5 to 20 per cent less than a year ago, ranging from $13.50 per month with board in Oklahoma to 1,16.55 in Nebraska. Daily wages range from 65 cents to 85 cents per da,y with board to 90 cents to $1.25 without board. Supply far exceeds the demand in all states and, due to a slightly lower level of industrial employment, is greater than a year ago. The April I supply of and demand for farm labor in the states of this District and the United States, as estimated by the Bureau of Agricultural Economics: Colorado.--······· Kansas .............. Missouri ............ Nebraska.......... New Mexico ___ Oklahoma. __ ..... Wyoming_ ........ United States... Per cent of Normal Demand Supply 1933 1931 1931 1933 141 131 50 55 146 130 44 55 61 II9 II9 55 128 64 123 53 128 129 49 59 124 131 50 52 60 134 127 73 121.2 63.2 125.8 58.9 Supply per cent of Demand 1933 1931 282 240 236 33 2 216 242 192 261 262 223 213.5 219 238 174 193.4 191 FARM RENTALS: With both landlord and tenant favoring share cropping more than usual, and because of a shortage of funds, fewer farms are renting for cash although cash rents are about 20 per cent lower than a year ago. Land values are reported as 10 to 15 per cent lower than last year. 6 THE MONTHLY REVIEW Livestock Interrupted by the bank holiday, which resulted · in the markets of this District being completely closed one day and restricting operations for several days, the movement of all classes of livestock to the six principal market centers decreased in March as compared to a year ago. Receipts of cattle, hogs, and horses and mules were the smallest for any March in recent years, with that of calves the smallest since 1919 and of sheep since 1929. Kansas City reported arrivals of cattle the lightest for any March since I 892 and Omaha the marketing of hogs the lightest in thirty years. Arrivals of sheep and lambs were seasonally larger than in the preceding month, increasing 22.3 per cent, but marketings of the other four classes of livestock were lighter. In general the quality of both cattle and hogs offered was surprisingly poor considering the abundance of feed on farms. Price changes during the month were comparatively slight despite the sluggish demand for dressed meat resulting from the financial difficulties, warmer weather, and the Lenten season. All livestock values advanced sharply during the bank holiday period but receded thereafter as supplies increased. Fed steers and yearlings closed the month steady to lower but other classes of cattle were 25 to 50 cents per hundredweight higher. On March 16 choice yearling steers sold for f,6.50 per hundredweight at Kansas City as compared to the March, 1932, top of 'l,8.25. ~"Stocker and feeders averaged f,4.75 per hundredweight the~_closing week of the month as against f,5.62 a year earlier. Hogs were 40 to 50 cents higher, reaching f,4 per hundred pounds on March 7, the highest price in six months, and closing at 'l,3.70. A year ago the March top was f,4.60 and the closing price 'l,3.90. Increased offerings of sheep and lambs met a broad outlet and quotations were 10 to 25 cents higher for the month. Fed wooled lambs touched 'l,5.65 per hundredweight and closed at 'l,5.35, whereas, last year they sold up to $7.6o and closed at $6.75. Arizona spring lambs topped the market at $7 this year and $10 last year. FEEDING OPERATIONS: An increase of 10.4 per cent, or 130,000 head, in the number of cattle on feed in the eleven Corn Belt states on April I this year as compared to the same date in 1932, is reported by the United States Department of Agriculture. The increase was general, Wisconsin and Kansas being the only two states to show decreases, the percentage changes in relation to last year being as follows: Kansas 95; Missouri 105; Nebraska uo; Ohio 100; Indiana 107; Iowa u2; Michigan u2; Minnesota u7; Illinois 120; South Dakota 140; and Wisconsin 91. There was, however, a decrease of 181,000 head as compared to April 1, 1931, and 40,000 head as compared to the five-year average. Kansas City.............. Omaha........................ St. Joseph.·-·············· Denver Oklahoma CitY·-······· Wichita.......•.............. Cattle 78,587 94,663 :25,489 17,333 18,:254 16,190 Shipments of stocker and feeder cattle through stockyards into the Corn Belt during the nine months, July, 1932, to March, 1933, inclusive, were 4 per cent smaller, and for the three months, January to March this year, 29 per cent larger than in the corresponding periods of the preceding season. The Division of Crop and Livestock Estimates placed the number of lambs left on feed April 8 in northern Colorado, Arkansas Valley, and Scottsbluff sections at 475,000 head, or 20 per cent less than a year ago and 7 per cent less than on the like date in 1931. Shipments from the three areas since January I have totaled 5,263 cars this year compared with 5,434 last year and 5,375 two years ago. RANGES AND PASTURES: Cattle and sheep on western ranges came through the winter in fair to good condition, and losses, with the exception of old ewes, were comparatively light. Range feed has been slow in starting, especially in southeastern Wyoming, eastern Colorado, southwestern Nebraska, western Kansas, western Oklahoma, and northeastern New Mexico, which area continues dry. The April I condition of cattle, sheep, and ranges is reported by the Bureau of Agricultural Economics as better than a year ago but 5 to 7 points below the ten-year average. In commenting on the April I conditions in the various states of this District, the Bureau said: COLORADO: "Range feed good in San Luis Valley and western sections, but poor in eastern Colorado, where it continues very dry. Livestock are in good flesh in western areas but thin in eastern dry sections. Lamb and calf crop prospects good except in dry areas. KANSAS (Western): "Pastures continue very poor due to lack of moisture. Present outlook is for little or no pasture feed for six weeks. Cattle getting thin account limited supply and poor quality of feed. No wheat pastures available, and very little in prospect. Soil very dry. Calf crop fair to good. NEBRASKA (Western): "March snow supplied moisture and improved pasture prospects, but more moisture is needed. Cows are in fairly good flesh and a good calf crop is expected. NEW MEXICO: "Old grass is short and moisture is needed to start new feed. Feed will be short unless range feed develops soon. Cattle wintered well and are in fairly good shape. Ewes are in fair to good condition, with a few thin ewes in dry areas. Lamb crop prospects are good. OKLAHOMA: "Ranges are poor, except in the northeast, due to lack of moisture and cold weather. Wheat has provided little pasture. Feed is short in western sections and oil cake is being used. Cattle are thin except in the northeast and eastern area~; losses have been light. WYOMING: "Ranges in north, northeast and southwest fairly good, only fair in central and south central, and poor in southeast. Hay fed close with considerable feeding of corn and cake to range sheep. Cattle fairly strong, a few are thin, with light losses. Ewes in fair to good flesh, with considerable loss of old ewes. Lamb crop prospects fair to good." According to the United States Department of Agriculture, the spring movement, March to June inclusive, of cattle from the southwest to market and northern grass will about equal the light movement of last spring. Texas will ship about the MARCH MOVEMENT OF LIVESTOCK IN THE TENTH DISTRICT RECEIPTS STOCKERS AND FEEDERS Calves Hogs Sheep Cattle Calves Hogs Sheep 1:2,10:2 *:2:2:2,841 1,881 170,48:2 18,33:2 1,980 u,546 2, 247 188,708 1:2,7:21 186,699 1,489 19,560 5, 179 :240 84,346 n5,469 3,870 3,27 1 655 5,3°5 :2:23,61:2 :2,678 60,563 4,431 4,543 5,043 45 2 4,:21:2 61,491 9, 145 2:2,169 51, 273 3,500 March 1933................ :250,516 34,7:29 667,:213 7:29,585 February 1933·---····· 'l64,8II 36,663 698,479 596,705 March 193:2................ 300,461 38,816 755,:231 859,166 Three months 1933... 830,996 1:21,0:26 2,306,396 1,814,074 Three months 193:2._ 918,905 107,786 :2,875,3:29 ~,259,593 *Includes 137,26:2 hogs shipped direct to packers' yards. 38,867 52,677 44,749 I 55,644 139,753 6,:288 9,:2:20 6,393 :28,9:20 17,33 1 5,334 5,67:2 4,99o 16,519 1 5,538 40,019 47,856 44,,f.:28 143,8:20 153,147 PURCHASED FoR SLAUGHTE~ Calves Cattle Hogs Sheep 10,4:28 •:208,541 126,152 43,401 160,613 126,31:2 63,1:24 3,690 100,091 :21,791 73,:256 4,485 ,p,9:21 8,49:2 :24,135 1,935 10,5:26 6,719 3,843 57, 22 5 2'l,o97 6,765 1,599 49, 22 5 1 54,0 99 148,:2:23 166,498 474,714 519,3:26 75,575 590,781 4o5,5o6 329,716 589,997 610,073 413,788 1,991,287 1,041,u6 84,3-4-9 2 :25,980 :2:2,98:2 30,:261 ,3°5,009 1 ,337,2 5-4 THE MONTHLY REVIEW same number, or 579,0CJO head, as compared to the 1926-1930 average of 660,000 head. New Mexico and Arizona shipments will be slightly smaller than in 1932 when they totaled 74,000 and 51,000, respectively, as compared to the five-year average of I 16,0CJO and 97,000 head. Credit restrictions and the improved condition of southwestern pastures in contrast with the lateness and below normal condition of Oklahoma and Kansas pastures, have retarded the movement of cattle from the southwest into the Osage pastures of Oklahoma and the Blue Stem or Flint Hills pastures of Kansas. Ordinarily this movement reaches substantial proportions by April I but present indications are that volume will be delayed until May 1. Leasing has been very light with only about 3? per cent of the Blue Stem and 55 per cent of the Osage pastures leased by April 1, whereas, normally they are 70 to 90 per cent contracted for by that date. Present indications are that the January to May in-movement to Oklahoma and Kansas grass will be somewhat below the 290,000 head received last year and far below the numbers received in past years. Lease prices are about $1 to $1.50 per head lower than last year and $3 to $4 lower than in 193 l, ranging from t,2.50 to $5.00 per head for steers and cows and $2 to $3.50 per head for young stock. Kansas acreage quantities are averaging 4.3 acres per head for older cattle and 3 acres per head for calves, with Oklahoma guarantees ranging from 4 to 7 and 2 to 5 acres, respectively. Meat Packing With marketings of livestock during the bank holiday period confined chiefly to butcher stock, a larger than usual proportion of the animals received at market centers during March were purchased for slaughter. Packers' purchases of all species of meat animals at the six principal market centers of this District, including hogs shipped direct to packers' yards, exceeded the February volume, although receipts of cattle, calves, and hogs were lighter. Purchases for all departments were smaller, however, than in March, 1932, the slaughter of sheep and lambs, although the largest since last May, being the smallest for any March since 1929, that of calves the smallest since 1919, and of cattle the smallest for any like month in recent years. Purchases of hogs, although exceeding the March, 1930, and 1931 totals, were otherwise the lightest in years. There was a reduction in the numbers of cattle, calves, hogs, and sheep slaughtered under Federal meat inspection in the United States in March and the first quarter of 1933. compared to the like month and three months of 1932, according to the Department of Agriculture. Quarterly comparisons show the following declines: cattle, 3.8; calves, 5.9; hogs, 10; and sheep and lambs, 12.1 per cent. March slaughter exceeded the February slaughter for all species except swine. Cold Storage Holdings An unusually large accumulation of eggs for the initial month of the new storage season was the outstanding change in United States cold storage holdings during March. The into-storage movement of cased eggs was almost four times as heavy as in March a year ago, with holdings on April 1 totaling 1,821,000 cases compared to 700,000 last year and a five-year April 1 average of 1,294,000 cases. Holdings of frozen eggs, which increased but slightly for the month, were 34.8 per cent lighter than a year ago and 15.5 per cent below the average. April 1 holdings of beef, pork, poultry, miscellaneous meats, lard, and cheese were smaller and of lamb and mutton larger than one year earlier. Storage stocks of all commodities except eggs were substantially below the five-year average. ' The net out-0f-storage movement of creamery butter and beef and the seasonal in-movement of pork and lard during March was lighter than usual, whereas, the seasonal out-movement of poultry, miscellaneous meats and cheese were approximately normal. United States cold storage holdings as reported by the Bureau of Agricultural Economics: *April 1 March I April I April 1 1933 1932 5 Yr.Av 1933 67,013 33,702 36,015 46,346 Beef, lbs,.--······················ Pork, lbs .............................................. 610,138 609,321 79 2, 197 861,712 Lamb and mutton, lbs ....................... 1,222 1,805 1,683 3,164 88,675 74,660 80,450 67, 195 Poultry, lbs.·-······································· **Turkeys, lbs ......................................... 15,744 12,729 11,423 10,745 Miscellaneous meats, lbs 65,901 80,505 4 1,993 45,9 19 Lard, lbs ........... 61,713 58,182 10 5,635 126,577 Eggs, cases ................. 1,821 163 1,294 700 Eggs, frozen (case equivalent) .......... 1,286 1,156 1,521 1,972 u,580 13,782 Butter, creamery, 1bs.·---··················· 9,o94 9, 253 Cheese, all varieties, lbs .................... 48,742 55,518 55,73 1 54,021 *Subject to revision. (ooo omitted) . **Included in Poultry. Petroleum Estimates, based on the weekly figures of the American Petroleum Institute for March, compared to the official reports of the Bureau of Mines for February this year and March, 1932, indicate that the flow of crude oil from wells in the five oil producing states of the District was 15.8 per cent greater in March than in February, and 9.2 per cent larger than last March. The increase for the month was due in part to the three extra days, but the daily average flow was 4.6 per cent greater. On the basis of above estimates, first quarter production totaled 55,459,000 barrels this year as compared with 55,352,0CJO barrels last year. Gross production of crude oil, in the United States and each of the five states of this District, is shown in the following: *March 1933 Barrels 14,510,000 3,644,ooo 974,ooo 79,ooo 1,154,000 Feb. 1933 Barrels 12,810,000 2,806,000 868,ooo 74,000 1,024,000 March 1932 Barrels 13,329,000 2,879,000 1,170,000 Total five states.......................... 20,361,000 Total United States.................... 67,474,000 *Estimated, American P etroleum Institu te. 17,582,000 61,029,000 18,646,000 67,189,000 Oklahoma..·-································· ICansas ......................................... . Wyoming..................................... . Colorado.--··································· New Mexico·-··-··························· I 16,000 1,152,000 Posted prices for mid-continent crude oil remain unchanged, ranging from 28 cents per barrel for oil testing below 29 degrees gravity to 52 cents for that testing 40 degrees and over. Prices of all grades of natural and refinery gasoline were lower, but, with the spring demands of agriculture, kerosene and tractor distillates moved freely at firm to higher prices. Fuel and gas oils were slow and prices weak with the seasonal let-up in demand. Field activity in the District continues comparatively light with the number of wells completed in the first quarter smaller than in any like period in over ten years, 1932 excepted. There were fewer rigs up and wells drilling at the close of March than a year ago or on the like date of any recent year. A summary of field operations in this District and the United States follows: TENTH DISTRICT Completions March 1933 ......... . 129 Feb. 1933 ............. . 1 33 March 1932 .......... 3 Mos. 1933·-······· 3 Mos. 1932......... . New Rigs Up Prod'n and We!ls Drilling 45,335 668 60,250 553 71,790 670 184,923 259,286 UNITED STATES CompleNew Rigs Up tions Prod'n and Wells Drilling 8II 259,201 2,330 848 2.11,155 2,538 12 5,539 2,631 962 2,621 761,496 2,775 469,53 1 8 THE MONTHLY REVIEW Bituminous Coal Bituminous coal production at mines in this District decreased 32..4 per cent in March, or somewhat more than the usual seasonal amount. The monthly output was 2.6.3 per cent less than that of March, 1932., and the cumulative production for the first quarter this year was 16 per cent less than for the like period last year. March production figures, as estimated from the weekly reports of the United States Bureau of Mines, Department of Commerce, with comparisons, follow: Colorado Kansas .................. Missouri .......... New Mexico Oklahom Wyoming...... ................................. •Mar. 1933 Tons 379,ooo 160,000 271,000 82,000 45,000 262,000 •Feb. 1933 Tons 614,000 212,000 365,000 II4,000 148,000 320,000 Subsequently shipments of both classes of ores improved, exceeding production and last year's shipments. Total shipments for the four weeks ended April 1 were substantially lighter for both ores than in the preceding four weeks, but somewhat heavier than in the corresponding four weeks of the preceding year. Several of the large producers ceased operations the forepart of the month and at the close production was being restricted by a number of operators. Tonnage and value of zinc ore and lead ore shipped from mines in Missouri, Kansas, and Oklahoma: Mar. 1932 Tons 550,000 ZINC 163,000 387,000 100,000 87,000 Oklahom Kansas .... Missour· 339,000 4 Wks. ended April 1, 1933 4 Wks. ended March 4, 1933 4 Wks. ended April 2, 1932 13 Wks. ended April 1, 1933 13 Wks. ended April 2, 1932 Total six states .. ______ 1,199,000 1,773,000 1,626,000 Total United States .. _ _ _ _ 23,685,000 27,134,000 32,250,000 *Estimated from the weekly reports of the United States Bureau of Mines. Zinc and Lead Shipments of both zinc ore and lead ore from mines in the Tri-state district were extremely light the forepart of March. Deliveries of zinc ore during the week ended March 18 were the lowest of record and those of lead ore the second lowest. Tons 8,178 3,II3 39 1 II,682 19,793 u,192 69,5 17 39,669 ORE Value '/, 145,112 LEAD ORE 6,999 Tons 1,116 632 89 $ 207,524 322,215 192,537 1,207,328 694,833 1,837 2,314 1,385 6,568 10,195 55,4 1 3 Value f, 38,084 22,300 3,012 '/, 63,396 74,048 43,627 214,788 403,236 Zinc ore prices opened the month i1 higher and remained steady at $18 per ton, or $1 per ton above last year's quotations. Lead ore prices advanced and then receded $3. 50 per ton to close at $32. 50 as against '1,2. 5 a year ago. Quotations on zmc advanced i6 and lead $7.50 per ton to April '.20. Business Conditions in the United States By the Federal Reserve Board Production and distribution of commodities, which declined during the latter part of February and the early part of March, increased after the middle of the month. The return flow of currency to the reserve banks, which began with the reopening of banks on March 13, continued in April. Following the announcement by the President on April 19th that the issuance of licenses for the export of gold would be suspended, the value of foreign currencies in terms of the dollar advanced considerably and there was increased activity in the commodity and security markets. PRODUCTION AND EMPLOYMENT: Production at factories and mines decreased from February to March, contrary to seasonal tendency, and the Board's seasonally adjusted index declined from 64 per cent of the 1923-25 average to 60 per cent, compared with a low level of 58 per cent in July, 1932. At steel mills there was a decline in activity from an average of 20 per cent of capacity in February to l 5 per cent in March, followed by an increase to more than 20 per cent for the month of April, according to trade reports. In the automobile industry, where there was also a sharp~contraction in output when the banks were closed, there was a rapid increase after the reopening of banks. From February to March, production in the food and cotton textile industries showed little change in volume; activity in the woolen industry declined sharply; and there was a reduction in daily average output at shoe factories. At lumber mills activity increased from the low rate of February, while output of bituminous coal declined by a substantial amount. The volume of factory employment and payrolls showed a considerable decline from the middle of February to the middle of March. Comprehensive figures on developments since the reopening of banks are not yet available. Value of construction contracts awarded in the first quarter, as rep?rted by the F. W. Dodge Corporation, was smaller than in the last quarter v of 1932 by about one-third. DISTRIBUTION: Volume of freight carloadings, on a daily·-average basis, declined from February to March by about 7 per cent, reflecting in large part a substantial reduction in shipments of coal. Shipments of miscellaneous freight and merchandise, which usually increase at this season, declined in the early part of March and increased after the middle of the month. Department store sales, which had declined sharply in the latter part of February and in the first half of March, increased rapidly after the reopening of banks. WHOLESALE PRICES: Wholesale prices of leading commodities fluctuated widely during Ma't'ch and the first three weeks of April. In this period grain prices increased sharply and prices of cotton, hides, non-ferrous metals, pig iron, scrap steel, and several imported raw materials advanced considerably. During the same period there were reductions in the prices of rayon, petroleum, and certain finished steel products. BANK CREDIT: Currency returned rapidly to the reserve banks and the Treasury following the reopening of the banks and on April 19 the volume of money in circulation was $1,500,000,000 less than on March 13, when the peak of demand was reached. Funds arising from the return flow of currency were used to reduce the reserve bank holdings of discounted bills by f,1,035,000,000 and their holdings of acceptances by '1,200,000,000. At the same time member bank reserve balances increased by $390,000,000. As a result of the decline in Federal reserve note circulation and an increase in Federal reserve bank reserves, chiefly through the redeposit of gold and gold certificates, the reserve ratio of the twelve Federal reserve banks, combined, advanced from 46.5 per cent on March 13 to 61.5 per cent on April 19. Deposits of reporting member banks in New York increased rapidly after the reopening of the banks, and on April 19 net demand deposits were $620,000,000 larger than on March I 5, reflecting in part an increase of $380,000,000 in bankers' balances, as funds were redeposited by interior banks. Money rates in the open market, after a temporary advance in the early part of March, declined rapidly but were still somewhat higher than early in February. By April 21 rates on prime commercial paper had declined from 4.½ per cent to a range of 2 to 2.½ per cent; rates on 90-day bankers' acceptances from 3% per cent to ~ of one per cent; and rates on renewals of call loans on the stock exchange from 5 per cent to one per cent. On April 7 the discount rate of the Federal Reserve Bank of New York was reduced from 3.½ to 3 per cent. The banks' buying rate on "'90-day bankers' acceptances was reduced from 3.½ per cent on March 13 to 2 per cent on March 22.
@FedFRASER