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THE MONTHLY REVIEW Of Agricultural, Industrial, Trade and Financial Conditions in the Tenth Federal Reserve District FEDERAL Vol. 19 RESERVE BANK OF KANSAS Kansas City, Mo., May 1, 1934 I N contrast to the banking holiday and prevailing uncertainties of a year ago, business, banking, agriculture, and industry in the Tenth Federal Reserve District reflect a decided improvement for March, 1934, over March, 1933. Gains in payments by check, net demand, time, and savings deposits, merchandise and insurance sales, collections, factory output and mineral production, employment and payrolls, prices of agricultural products and farm purchasing power, and a decline in business insolvencies are disclosed by statistical comparisons. The dollar volume of wholesale and retail trade was approximately 42. per cent larger than in March, 1933, and somewhat larger than in March, 1932.. Department store sales increased 39.9 per cent as compared to February this year, or somewhat more than usual, and wholesalers' sales showed a gain of 10.4 per cent. These increases were due in part to advancing prices, a later Easter, and the low condition of trade at this time last year. Sales of lumber at retail were 2.3.9 per cent, and of new paid-for life insurance 35.4 per cent, above a year ago. Business insolvencies were at the lowest levels for the month since 192.0. Industrial activity, on the whole, showed considerable improvement over February this year and March last year. Building operations, although comparatively light, were substantially larger than in March, 1933. Flour and crude oil production were slightly under a year ago but the output of bituminous coal and cement and shipments of zinc ore and lead ore were much larger. Farm work is more advanced than usual at this season. The soil works well and seed bed preparation and planting are making good progress although dryness prevails and rains are needed generally. Winter wheat is in much better con- dition than a year ago in all states except New Mexico and, although the area seeded last fall was less than the year before, abandonment to date has not been nearly so great. Fruit prospects are, on the whole, good but still subject to frost damage. Livestock wintered well and is in fairly good condition. Calf and lamb crop prospects are excellent. Agricultural purchasing power showed a slight decline the past month as prices of grains, cotton, hogs, sheep and lambs, and some classes of cattle worked lower. Prices of fed steers improved. All commodities are selling above last year's levels. Farm rentals and wages are slightly higher than a year ago and the supply of labor exceeds the demand. Banking and Credit Combined weekly condition statements of fifty-two reporting member banks in selected cities of the Tenth Federal Reserve District indicated a decrease of r.2. per cent in loans secured by stocks and bonds and an increase of 0.5 per cent CI TY No. 5 BUSI ESS IN THE TE T H FED ERAL R ESER VE DISTRICT Percentages of Increase, or Decrease (-), fo r March 1934 over F ebruar y 1934 and March 1933 and for t he first three months of 1934 over the like period in 1933. March 1934 ,1 Months 1934 Comp ared to Compared to Banking Feb. 1934 Mar. 1933 3 Months 1933 Payments by check, 29 cities.................. 6.r 39.2 24.6 Federal Reserve Bank clearings.............. 15-0 80.2 60.3 Business failures, number.. ...................... 27.3 - 29.1 - 49. 8 Business failures, liabilities...................... 11.3 -55.5 -67.4 Savings deposits, 44 selected banks........ 2.2 9.3 Savings accounts, 44 selected banks.. .... 0.5 5. 1 Distribution Wholesalers' sales, 5 lines combined .. .. .. I0.4 42.0 Retailers' sales, 32 department stores .... 42.3 39.9 2 3-9 L~m?er sales, 157_retail yards ............... . 15.0 2 7-3 Life msurance, wntten._ .......................... . 35.4 Construction Building contracts awarded, valu e......... . 88. 2 143.4 Residential contracts awarded, v alue... . 21.I 99· 1 Building permits in 17 citi es, value....... . 92 -3 Production Flour.-........................................................ . - 3.6 13.4 - 1. 5 Crude petroleum ....................................... . 11.0 - 2. 7 7.3 Soft coal.. .................................................... 9.0 38.7 7.0 Zinc ore (shipped) Tristate District ...... - 2.6 82.6 - 0.9 Lead ore (shipped) Tristate District ..... . o.6 53.8 54.3 Cement..................................................... . 75. 9 91.3 53· 2 Grain receipts Wheat......................................................... . 21. 6 - 9.0 -21.7 Corn ........................................................... . - 3.5 91.6 61.9 2 48.2 -30.0 Oats·-- ························································· -5 .5 Rye ............................................................. . 8.1 38.3 53-2 Barley.-...................................................... . 176.2 72.6 239.3 Kafir............................................................ - 14.2 22.7 7.4 Livestock receipts, 6 markets Cattle......................................................... . 32.2 24.8 3.7 Calves.-...................................................... . 2 7•7 48. 8 5-I Hogs ........................................................... . - 16.0 - 11 .8 2.3 Sheep .... ............................................ ......... . 1 5-4 1 3.8 3.7 Horses and mules ..................................... . - 3.9 85.2 70.2 Meat packing, 6 markets Cattle.......................................................... - o.6 27.2 32.6 61.0 65.5 Calves·-······················································· 16. 2 Hogs............................................................ - 18.0 0.1 - 1 7.9 S'1.eep.......................................................... 7.8 - 12.8 2.6 in "all other" loans in the four weeks' period ended April l I. Total loans and discounts outstanding as of that date were virtually the same as four weeks earlier. Total investments and investments in United States Government securities, which have increased steadily the past few years to record totals of '$357,2.78,000 and '$ 2.49,32.1,000 on March 7, declined 1.7 and 3.2. per cent, respectively, during the four weeks' period. Investments in other bonds, stocks, and securities advanced r.8 per cent. Net demand deposits were 1.7 per cent smaller and time deposits 1.6 per cent larger on April II than on March 14. This Copy Released For Publication In Morning Newspapers, April 30. 2 THE MONTHLY REVIEW Changes in the principal resource and liability items of the reporting banks, between March 14 and April II, are shown in the following table of comparisons: April Loans and investments-total............................. Loans and discounts-totaL--····························· Secured by stocks and bonds .-......................... All other loans and discounts............................ Investments-total................................................. U. S. securities.................................................... Other bonds, stocks, and securities............... Reserve with F. R. bank._.................................... Net demand deposits............................................. Time deposits.......................................................... Government deposits.............................................. 1934 Mar. 14, 1934 f,552,572,000 198,329,000 198,449,000 61,556,000 62,301,000 136,773,oco 136,148,000 348,261,000 354,123,000 238,302,000 246,128,000 109,959,000 107,995,000 76,361,000 82,954,000 399,951,000 406,943,000 167,439,000 164,797,000 26,282,000 30,240,000 II, .AMOUNT $546,590,000 FEDERAL RESERVE BANK: A continuation of the lessening demand for credit by member banks from the Federal Reserve Bank of Kansas City and branches, between March 14 and April II, is disclosed by the weekly condition statements of this bank which show the total of bills rediscounted for member banks at new low levels on the latter date. Holdings of bills purchased in the open market also declined and holdings of bills rediscounted and purchased as of April II were but a fractional part of the amounts shown by the statement of April 12., 1933. Purchases of United States Government securities expanded $10,000,000 during the four weeks' period and on April 11 exceeded the total of April 12., 1933, by $36,2.2.4,100. Federal reserve and Federal reserve bank note circulation declined during the four weeks' period and total note circulation is now $13,013,065 less than a year ago. Member banks' reserve deposits were 3.6 per cent smaller on April II than on March 14 but 76.9 per cent larger than on April 12. last year. Principal resource and liability items of the Federal Reserve Bank of Kansas City and branches as of the three dates: Apr. II, 1934 Mar. 14, 1934 Apr. 12, 1933 Total reserves .... _ _ _ _ f,162,014,595 $182,447,744 $124,678,642 Redemption fund F. R. B. notes .. . 150,000 500,000 ······-············ Bills discounted·---··························· 307,286 357,187 21,895,491 Bills purchased................................. 466,718 1,339,582 6,868,826 U. S. securities .. _.............................. 93,444,200 83,444,200 57,220,100 Total bills and securities.................. 94,218,204 85,140,969 85,984,417 Total resources .... _ _ _ _ 287,188,284 302,107,587 234,6o7,445 F. R. notes in circulation.............. 107,942,26o 109,254,560 123,219,525 F. R. Bank notes in circulation-net 2,264,200 4,278,700 .................... Member banks' reserve deposits.... 132,3o6,908 137,241,044 74,797,916 The discount rate of the Federal Reserve Bank of Kansas City, on all classes of paper and all maturities, remair,s unchanged at 3 per cent. Savings Forty-four selected banks in leading c1t1es of the District reported a gain of '.2..'.2. per cent in savings deposits during March, and deposits on April 1 this year as 9.3 per cent larger than on April 1, 1933. Increases in the number of savings accounts of 0.5 per cent for the month and 5.1 per cent for the year were also reported. Savings accounts and savings deposits as reported by the forty-four banks for the three dates of comparison: Savings Accounts 377,671 April 1, 1934............................................ March 1, 1934·-······································· April I, I933··· · - - - - ···················· period of 1933. The large increases over 1 933 were due m part to Federal disbursements. Check collections through this bank and branches: 375,646 359,279 . Savings Deposits $107,643,5o6 105,289,316 98,489,781 Reserve Bank Clearings Check co!lections through the Federal Reserve Bank of Kansas City and branches at Omaha, Denver, and Oklahoma City totaled 5,555,074 items for 782.,439,000 in March. These • totals reflect increases over February, 1934, and March, r933, of 6.9 and 6o.3 per cent, respectively, in the number of items handled and 15.0 and 80.2. per cent in dollars. Clearings for the first quarter of the new year were 58 per cent larger in volume and 6o.3 per cent larger in amount than in the corresponding March·--··········· February.......... Three months .. 1934 5,555,0 74 5,195,058 16,591,199 1933 3,465,068 3,328,098 10,501,274 1934 $ 782,439,000 680,161,000 2,196,145,000 1933 ' 434,09 1 , 000 443,410,000 1,369,712,000 Bank Debits Debits to individual accounts, as reported by banks in twenty-nine leading cities of the District, for the five weeks ended April 4 this year were, making no allowances for the influence of the banking holiday extending from March 5 to March 14 and 15, 1933, 39.2. per cent larger than in the like period last year. As in February, all cities shared in the increase. The total also exceeded that reported for the preceding five weeks ended February 2.8, the increase amounting to 6.1 per cent. Totals by cities, for the five weeks ended April 4 this year and April 5 last year, are shown in the following table: FtVE WEEKS ENDED April 4, 1934 April 5, 1933 $ 6,714,000 f, 9,149,000 Albuquerque, N. M.·- - ············· 2,319,000 2,932,000 Atchison, Kans.·--····················· 16,863,000 24,874,000 *Bartlesville, Okla.·-··················· ' 3,968,000 3,43°,000 Casper, Wyo ...·-························· Cheyenne, Wyo ......................... 5,226,000 4,196,000 Colorado Springs, Colo ............ 11,364,000 10,577,000 II I ,628,000 Denver, Colo ........................ 142,819,000 8,251,000 5,639,ooo Enid, Okla ...·-··-························· 1,573,000 Fremont, Nebr........................... 3,023,000 *Grand Junction, Colo .............. . 2,232,000 650,000 *Guthrie, Okla ............................ . 1,884,000 923,000 Hutchinson, Kans .................... . 10,781,000 8,138,000 *Independence, Kans ............ .. . 1,373,ooo 4,309,000 6,008,000 Joplin, Mo ................................ . 7,887,000 Kansas City, Kans ................... 10,710,000 8,907,000 208,o64,ooo Kansas City, Mo ....................... 284,341,000 Lawrence, Kans ................. ••····2,849,000 3,454,000 17,937,000 29,279,000 Lincoln, Nebr.·-························M uskogee, Okla ......................... 9,227,oco 5,239,000 *Oklahoma City, Okla .............. . 80,751,000 57,8o6,ooo *Okmulgee, Okla ........................ . 1,627,000 2,969,000 Omaha, Nebr ............................. l40,o68,ooo 97,goo,ooo 2,924,000 3,658,000 Pittsburg, Kans ... ·-··················· Pueblo, Colo .._........................... 15,590,000 10,531,000 000 Salina, Kans ......... ..................... . 4,938,ooo 7,590, St. Joseph, Mo .......................... . 20,098,000 28,5II,OOO 14,697,000 15,096,000 Topeka, Kans.·-························· 91,429,000 55,434,000 *Tulsa, Okla.·-····························· Wichita, Kans .......................... . 26,463,000 34,277,000 Per cent Increase 36.3 26.4 47.5 1 5·7 2 4•5 7.4 2 7•9 46.3 92.2 243.4 104.I 32 ·5 2q.8 31.,1 20.2 36.7 21.2 63.2 76.1 39.7 82.5 43· 1 25.1 48.0 53.7 ..p.9 ~.7 64.9 2 9•5 Total 29 cities, 5 weeks.......... $ 995,649,000 $ 715,445,000 39.2 Total 29 cities, 13 weeks.......... 2,498,338,000 2,005,350,000 24.b *Does not include debits for one week in March, 1933, for which reports were not received. Failures Business insolvencies in the United States and this District, although showing some increase over February, were in striking contrast to the March totals of recent years. Numerically, failures were lower than in any March since 192.0 as was also true of the amount of liabilities involved. In the District March failures declined 2.9.1 per cent in number and 55.5 per cent in dollars as compared to the like month last year. Commercial failures in the United States and the Tenth District as reported by Dun and Bradstreet, Inc.: March 1934.......................... February 1934---················· March 1933 .......................... Three months 1934·--········· Three months 1933·--········· TENTH DISTRICT umber Liabilities 1, 604,283 56 543,032 44 1,359, 137 79 1 ,55°,595 148 2 95 4,757,813 UNITED STATES umber Liabilities 1,102 '/, 27,22;,51 I 19,444,718 i,049 48,500,212 1,948 79,577,657 3,5 15 193,176,882 7, 245 THE MONTHLY REVIEW Stores Reporting Kansas City........ 4 I >enver·-··············· 4 Oklahoma City.... 3 Tulsa .................... 3 Wichita................ 3 Other cities.......... 15 3 RETAIL TRADE AT 32 DEPARTMENT STORES IN THE TENTH FEDERAL RESERVE DISTRICT SALES STOCKS (RETAIL) ACCOUNTS RECEIVABLE AMOUNTS COLLECTED March 1934 Year 1934 March 31, 1934 STOCK TURNOVER March 31, 1934 March 1934 compared to compared to compared to March Year compared to compared to March 1933 Year 1933 Feb.28,1934 Mar.31,1933 1934 1933 1934 1933 Feb.28,1934 Mar.31,1933 Feb.1934 Mar. 1933 43.4 23.8 18.3 - 1.5 .24 .16 .60 .48 9.3 5.8 -11.3 17.1. 41.6 28.9 7.7 12.3 .29 .23 .76 .62 7.6 18.0 - 1.4 30.5 40.7 31.8 2.5 5.6 .39 .29 1.05 .81 - 1.2 4.4 0.3 30.7 40.3 27.6 - I.2 20.2 .40 .34 I.IO J.1 2 3.0 I0.4 Even 35.0 10.6 36.0 34- 2 30.3 - 0.2 24.5 .30 .29 .77 .62 4.6 5.3 48.1 29.3 5.6 13.9 .27 .21 .70 .61 r.o Even 1.5 31.4 Tota'----··············· 32 42.3 28.2 8.2 8.9 .29 .22 .75 .62 NOTE: Percentage of collections in March on open accounts February 28, all stores reporting 43.6. Trade RETAIL: Reports from thirty-two department stores, located in Tenth District cities, disclose an unusual expansion in trade during March and the first three months of 1934. After four consecutive years of declines, March and first quarter sales exceeded the -dollar volume for the like month and three months of the preceding year by 42..3 and 2.8.2. per cent, respectively. The stores also reported a gain for March over February of 39.9 per cent, the largest ever recorded. Higher prices, an earlier Easter, and the bank moratorium of a year ago are partially accountable for these unprecedented gams. Merchandise stocks at the reporting stores were enlarged 8.2. per cent in March. This increase, the largest reported for the month since 192.6, corresponds with an average increase of 4 per cent. On March 31 inventories were 8.9 per cent heavier than on the like date last year, the first increase for that date over the like date of the preceding year reported since March 31, 192.6, as compared to March 31, 192.5. Collections for the month on open accounts totaled 43.6 per cent of amounts outstanding at the close of February. This collection figure compares with 39.6 per cent in February this year and 35.4 per cent in March, 1933. Collections on installment accounts averaged 16.7 per cent in March, 15.5 per cent in February, and 13.0 per cent last March. WHOLESALE: Sales of merchandise at wholesale also increased as compared with the preceding month this year and the corresponding month and three months last year. The improvement was general, extending to all reporting lines. Dollar sales of dry goods were 46.5, groceries 7.7, hardware 60.7, furniture u5.6, drugs 52..0, and of the five lines combined 42.0 per cent larger this March than last. These gains over the previous March follow six years of declines for dry goods and hardware, five for groceries and the composite of all lines, four for drugs, and three for furniture. Increases for the initial quarter of 1934 over that of 1933 were reported as follows: dry goods 5i; groceries 12; hardware 60; furniture 97; drugs 44; and the five lines 40.4 per cent. All lines reported March sales as somewhat above the February volume, the combined increase averaging 10.4 per cent. Wholesalers of drugs reported a slight reduction in stocl-s between February 28 and March 31, but the other four lines showed inventories as somewhat heavier at the end of March than one month earlier. Compared to March 31, 1933, 4.3 7.6 - 1.7 Collections same month last year 35.4. stocks of dry goods were 2.4.3, groceries 2.1, hardware 29.1, furniture 53.0, drugs 7.4, and all lines combined 19.4 per cent larger. Collections improved in all lines both as compared to February, 1934, and March, 1933. Lumber Reports from 157 retail yards located throughout the District showed March sales of lumber in board feet increased 15 per cent over February and were 23.9 per cent larger than in March, 1933. Dollar sales of all materials showed gains of 22.4 per cent for the month and 57.6 per cent for the year. Inventories were increased 3.1 per cent between February 28 and March 3 I and on the latter date were 4.9 per cent heavier than one year earlier. Collections improved slightly, averaging 31.4 per cent of amounts receivable at the close of February as compared to collection percentages of 30 per cent in February and 17.9 per cent in March, 1933. March business is here compared with that for February, 1934, and March, 1933, in percentages of increase or decrease: March 1934 Compared to February 1934 March 1933 Sales of lt!mber, board feet............ .................... 15.0 1.3.9 Sales of all materials, dollars.. .......................... 22.4 57.6 Stocks of lumber, board feet·--························· 3.1 4.9 Outstandings, end of month.............................. 2.4 - 5.8 National lumber production for the year to March 31, as reported to the National Lumber Manufacturers Association, was 58 per cent larger than for the same period in 1933. Shipments showed an increase of 23 per cent and lumber orders booked an increase of 29 per cent. Orders for the three months' period were 3 per cent above output but shipments were 7 per cent below. Building Building activity expanded seasonally in March and the returns for the month and three months indicate construction in the District was considerably ahead of the like month and three months of 1933. The value of construction contracts awarded in the District during March was 88.2. per cent higher than for February and q3.4 per cent higher than for March last year, according to reports of the F. W. Dodge Corporation. Residential construction increased 21.1 per cent over February and 99.1 per cent over March, 1933. Gains for the first quarter amounted to II 5.3 per cent in total awards and 78.6 per cent in residential building. WHOLESALE TRADE IN THE TENTH FEDERAL RESERVE DISTRICT Reporting Stores Dry goods ...................... 6 Groceries........................ 5 Hardware.--··················· 9 Furniture·-····················· Drugs 5 7 SALES OuTSTANDINGS AMOUNTS COLLECTED STOCKS March 1934 compared to March 31, 1934 compared to March 1934 compared to March 31, 1934 compared to Feb.28,1934 Mar. 31, 1933 24•3 6.5 'J..I 28.1 29.1 2.7 6.4 53.o - 0.3 7.4 Feb. 1934 6.8 I.I 24.8 15.2 9.5 March 1933 Feb.28,1934 1.9 46.5 - 0. 1 7.7 60.7 J.5 2.0 115.6 52.0 2.5 Mar. 31, 1933 -4.6 -20.0 10.5 18.4 2.7 Feb. 1934 17-5 20.9 13·5 26.5 2.7 March 1933 56.9 23.8 58.4 116.3 33.o THE MONTHLY REVIEW 4 The totals as reported by the F. W. Dodge Corporation: TOTAL BUILDING CONTRACTS AWARDED TENTH DISTRICT UNITED STATES 1934 1933 1934 1933 March .............. 1, 7,705,146 1, 3,165,116 1,178,439,800 1, 59,958,500 February ........ 1 1 1 2 4,o94,5o6 ,799, 94 96,7 6,300 5 ,712,3 00 Three months 19,657,221 9,129,510 462,619,800 196,026,800 RESIDENTIAL CONTRACTS AWARDED TENTH DrsTRICT UNITED STATES 1934 1933 1934 1933 March·--········· 'f, 1,084,891 1, 544,991 'f, 28,076,100 1, 16,021,000 February........ 895,510 308,188 14,520,300 11,805,300 Three months 3,216,115 1,800,662 57,706,800 39,777,200 Building departments of seventeen cities in the District issued 990 building permits in March for operations estimated to cost $963,641. These totals, although much below normal, represented increases over March, 1933, of 56 permits and $46'2,591 in estimated construction costs. Expenditures in the first quarter, with an increase of 241 permits, were 48.4 per cent above the 1933 totals for the like period. BUILDING PERMITS IN TENTH DISTRICT CITIES PERMITS ESTIMATED COST 1934 1933 1933 1934 Albuquerque, N. M .... -............... 1, 32,729 1, 17,242 41 45 Cheyenne, Wyo ........................... 8,666 24 14 3,9°9 21 ,945 11,861 30 Colorado Springs, Colo.·-··········· 35 Denver, Colo ............................... 254 326 156,312 176,192 Joplin, Mo ....... ............................ 16 8 5,100 7,775 Kansas City, Kans ..................... 30 29 12,390 46,035 Kansas City, Mo ......................... 161 106 188,800 66,250 27,496 22,862 103 Lincoln, Nebr.·-··························· 34 Oklahoma City, Okla ................. 61 58,666 192,830 55 Omaha, Nebr............................... 51 90,105 56,605 47 36 6,467 51 5,290 Pueblo, Colo.·-····························· Salina, Kans .._............................. II 14 3,840 3,54° Shawnee, Okla............................. 8 2,450 6,525 3 16 22 St. Joseph, Mo .. -......................... 55,400 9,090 Topeka, Kans .. _........................... 27 20,450 4,7 25 37 Tulsa, Olda ................................... 25,868 50 56 74,543 Wichita, Kans ............................. 24,023 18,710 70 53 Total 17 cities, March ................ Three months .............................. 99° 2,293 934 2,05'2 l> 963,641 1, 501,050 2,539, 189 1,710,623 Flour Milling March and first quarter output of flour at Tenth District mills were respectively 1.5 and 3.6 per cent short of a year ago and the ten-year average. Production exceeded the February total by 13.4 per cent, or somewhat more than usual and, although lighter than in the like month in the two preceding years, was the largest for any month since July. Mills operated at 59.8 per cent of full-time capacity in March as compared to 59.2 per cent in February and 61.3 per cent in March, 1933. Production figures, as estimated from the weekly reports of southwestern mills to the Northwestern Miller, follow: Atchison .................................................... Kansas CitY·--········································· Omaha....................... _ _ __ Salina....................................................... . Wichita. ___··············································· Outside·-··················································· Mar. 1934 Barrels 120,546 510,5 1 3 110,015 156,690 180,256 834,234 Feb. 1934 Barrels 111,506 442,179 96,858 137,780 148,861 749,746 Mar. 1933 Barrels 129,721 573,5o6 105,962 154,169 195, 257 867,570 TotaL....................................................... 1,912,254 1,686,930 2,026,185 *United States·-- ···································· 5,588,186 5,119,342 5,671,696 *Represents about 60 per cent of the total output in the United States. Flour sales were restricted although inquiry was active and prices weakened somewhat. Bookings were well scattered and largely for small amounts although an occasional round lot was sold. Most sales were for shipment within the present crop year with mills hesitant to contract on a new crop basis as millfeeds were, owing to prospective large Govern- ment purchases for grasshopper control, superficially high. Buyers who were considered booked for sometime ahead are reported again in the market. Shipping directions were slow. Export trade was of a routine character except for a Government order of flour for relief distribution in Porto Rico. Millfeed demand was very good throughout the month with the supply tight. Bran advanced about $4 and shorts 'l,3. 50 per ton to sell on the same basis at the close. Quotations broke sharply the middle of April as demand diminished and grain prices declined. Grain Marketing Receipts of wheat, oats, and rye at the five principal grain markets of the District were 9.0, 48.2, and 8.1 per cent, respectively, lighter than in March, 1933. Arrivals of corn, the heaviest for the month in three years, were almost double and of barley, the largest since 1930, were over three times as great. Kafir receipts were 7.4 per cent heavier. March receipts of all classes of grain, except barley, were substantially below the ten-year average, with receipts of wheat the smallest for the month since 1926 and of oats in over fifteen years. First quarter marketings were also substantially below normal, the various classes showing the following percentage declines as compared to the ten-year average: wheat and corn 50; oats 6o; barley 45; kafir 75; and rye 6 per cent. Arrivals of six classes of grain at the five markets: Hutchinson ...... Kansas City ... _. Omaha ............. . St. Joseph... _..... Wichita..·-········· March 1934...... February 1934.. March 1933...... 3 Mos. 1934...... 3 Mos. 1933...... Wheat Corn Bushels Bushels 645,300 2,500 3,o60,800 1,417,500 758,400 613,200 329,600 688,500 364,500 100,100 Oats Bushels 6,000 102,000 24,000 204,000 1,500 Rye Bushels Barley Bushels 6,000 29,400 49,600 43,200 5,158,600 2,821,800 337,500 4,241,350 2,924,200 711,000 5,665,750 1,472,550 651,500 13,554,550 10,083,700 1,534,000 17,309,600 6,229,350 2,191,000 35,400 92,800 33,600 27,350 181,450 105,150 25,600 38,500 186,000 121,400 Kafir Bushels 26,000 95,200 121,200 141,200 112,900 455,500 371,100 Grain prices remained relatively steady in March. Cash wheat, corn, rye, and barley declined 1 cent and oats 2,½ cents per bushel during the month, whereas, number 2 white kafir advanced 6 cents per bushel, Kansas City basis. No changes of consequence were recorded the first two weeks of April but on April 16 all grains broke about the maximum limits allowed for one day under code regulations. Cash grain prices at Kansas City as of the dates indicated: o. No. No. No. No. No. l 2 2 2 2 2 Apr. 16 Mar. 31 Feb. 28 Apr. 15 Mar. 31 Feb. 28 1934 1934 1934 1933 1933 1933 dark wheat............ t,.73½ 'f,.80½ $.81½ 'f,.59 1,.50½ f,.43 ¼ mixed corn ........... . .39 .43 .44 .32¼ .29½ .20¼ white oats .............. .28 .32 .34½ .22½ ,20 .17 rye......................... . ·5 2 .57 .58 .44 .41 .3 2 .38 .43½ .44½ .31 .29 .23,½ barley..·--··············kafir........................ .78 .8o .74 •7 2 .55 ·4 2 Crops Farm work is more advanced than is usual at this time. Soil preparation and planting is making good progress. · Seeding of oats and barley is nearly completed. Corn planting has begun in the southern half of the District and cotton planting has commenced in New Mexico and southeastern Oklahoma. Sugar beets are being planted in the lower valleys of eastern Colorado and truck crops are being planted generally. On April 15, dry weather prevailed over Nebraska, New Mexico, Kansas, the Oklahoma Panhandle, and the extreme eastern portion of Colorado. In other areas rainfall was sufficient for immediate needs. A sub-soil moisture deficiency continues to exist generally. Green bugs are reported damaging wheat and alfalfa in Oklahoma and eastern and southern Kansas. THE MONTHLY REVIEW -================================s WI TER WHEAT: On the basis of April 1 conditions the seven states of this District will produce 234,499,000 bushels of winter wheat in 1934, according to estimates of the United States Department of Agriculture. Production in 1933 totaled 137,471,000 bushels and in the five years, 1927 to 1931, an average of 332,227,000 bushels. Conditions in all states except ew Mexico are much better this year than last. Regarding the condition of wheat in the various parts of that state, the monthly report of the Kansas State Board of Agriculture said: "Crop prospects are good in the eastern third of the state and fair in the central and south central portions. The outlook is poor in the southwest but production in this area promises to he larger than in either 1932 or 1933. The out1ook is also poor in some of the north central and northwestern counties. Prospects are fair in the west central area. Wheat throughout the state is well rooted, but subsoil moisture is deficient generally and surface moisture is lacking in some counties which have not shared in recent rains." Drying winds and moisture shortages caused wheat in the District to deteriorate somewhat the first three weeks of April. United States production is estimated at 491,793,000 bushels this year, 351,030,000 bushels last year, and 632,061,000 bushels as the five-year average. The fall sown acreage was 4 per cent below that of 1932 but abandonment to date has been much less than a year ago. o estimate of abandonment will be made until May 1, however, present indications are for an abandonment of 14 per cent of the fall sown area, as against 33.4 per cent last year and 12.2 per cent for the years 1922 to 1 93!. April 1 condition and production figures of winter wheat as estimated by the United States Department of Agriculture, production in thousands of bushels, thousands omitted: PRODUCTION CONDITION APRIL I Harvested, bu. Average Indicated, bu. 1934 1933 1922-31 Apr. 1, 1934 1933 1927- 1931 80 2,412 Colorado._ ......... 72 7,884 I 5,49 1 34 124,012 Kansas .............. 70 175,876 57,45 2 37 77 19,396 16,600 20,225 80 Missouri ............ 83 74 62,866 25,894 Nebraska .......... 80 41,190 83 59 1,210 New Mexico... _. 49 3,421 842 70 59 52,641 40,1 72 Oklahoma .......... 71 33,095 49 79 808 1,003 1,707 Wyoming .......... 72 87 45 Seven states._... United States.... 73.0 74.3 48.7 59·4 78.8 79.2 234,499 491,793 137,471 351,030 332,227 632,061 All states of the District report rye in much better condition than a year ago and about normal for the season. Oats are coming up to good stands. Pastures are in below average condition. In Wyoming and Colorado pastures are much better than at this time last year but other states report conditions about the same, except Missouri, where they have declined. Colorado, Kansas, and Missouri report alfalfa making excellent growth and promising an early first cutting under favorable conditions. Sugar beet growers have signed acreage contracts with refiners on virtually the same basis as last year when they received an average return of about $5.50 per acre. Under Government quotas the acreage will be cut about IO per cent. Cold weather in February and the latter part of March killed a large part of the peach crop in Nebraska, Kansas, northeastern Missouri, and eastern Oklahoma, but elsewhere the damage was slight. The outlook for peaches on the western slope of Colorado is good, as are Missouri prospects. In Oklahoma prospects are the best in several years and on April 1 the condition of the crop in that state was placed at 66 per cent of normal as compared to 8 per cent on April 1, 1933, and an eight-year average of 44 per cent. The present outlook for all other kinds of fruit is promising but the danger of frost damage is not past. Spraying is general. STOCKS OF GRAI O FARMS: Stocks of wheat and corn on farms in the seven states, whose areas or parts thereof comprise this District, were 29 per cent smaller on April 1, 1934, than on April 1, 1933, and stocks of oats were 43 per cent less. Colorado and ebraska reported farm holdings of wheat as slightly larger than a year ago. Holdings of corn in Colorado and of oats in Colorado and Wyoming were also somewhat larger than last year. April 1 farm stocks of grain as reported by the Crop Reporting Board, United States Department of Agriculture, in thousands of bushels, ooo omitted: Colorado.-......... Kansas .............. Mi ssouri ............ ebraska .......... New Mexico... -Oklahoma.-....... Wyoming.......... Seven states·--· United States.__ WHEAT 1934 1933 1,242 1,070 13,801 22,834 2,163 3,3°4 9,638 9,506 365 74 8,725 5,957 1,086 663 33,538 II4,647 46,890 182,935 CORN 1934 1933 4,o65 7, 275 23,967 44,409 48,476 78,869 110,992 126,563 961 859 18,789 3,651 190 290 195,510 273,846 834,337 1,123,809 OATS 1934 1933 1,681 1,900 10,026 7,014 12,158 8,485 31,160 12,154 209 276 3,866 5,5 23 1,883 1,663 35,5 11 271,339 6-2,48 7 468,009 WAGES A D RE TS: Farm wages which have declined steadily since 1928, although low, are slightly higher in all states of the District than a year ago. The supply of farm labor is above and the demand below normal. Demand for help may be less than in 1933, due to acreage reductions under Government contracts. Less farm land is being rented for cash than in the past and most contracts are on a share basis. Rental values per acre average slightly higher than a year ago. PRICES: The Department of Agriculture reported no change between February 15 and March I 5 in the index of prices received by farmers for commodities sold. As prices paid by farmers for commodities purchased advanced 1 point to 120 per cent of pre-war, farm purchasing power declined 1 point to 63 per cent of the 1909-1914 average of 100. A year ago the ratio of prices received to prices paid stood at 50 and two years ago at 54. Livestock MARKET! G: The six principal livestock markets of the District received 32.2 per cent more cattle, 48.8 per cent more calves, and 85.2 per cent more horses and mules in March, 1934, than in March, 1933. Receipts of sheep at these market centers declined 13.7 per cent and marketings of hogs, including those shipped direct to packers' yards, showed a loss of r 1.8 per cent. Marketings during the first three months this year were larger than in the same period last year for all classes except sheep and lambs. March and first quarter receipts of calves were 4 per cent and of horses and mules 7 per cent in excess of the ten-year average for the like month and three months. Marketings of cattle, hogs, and sheep were below normal for both periods, hogs showing the greater and cattle the lesser decline. Countryward shipments of stocker and feeder livestock from four markets were somewhat larger for all species than in March, 1933. The January 1 to March 1 outgo of cattle and calves was fractionally smaller than in 1933, whereas, that of hogs was 16.1 per cent and of sheep 10.4 per cent heavier. PRICES: Livestock prices suffered their first setback of the year in March. Medium to heavy weight steers, which have been depressed, were the exception to the rule, advancing 50 cents per hundredweight. Cattle were in heavy supply and other classes closed steady to 25 cents lower. lthough offerings of hogs were limited, values were mostly 50 cents to 1 lower with light lights showing the greater weakness. Stock pigs sold lower than a year ago but other classes closed 25 to 6 THE MONTHLY REVIEW 50 cents per hundredweight higher. Many unfinished and poor quality hogs were received on the markets. Light receipts of sheep and lambs did not prevent a sharp reversal of the rapid advances to the end of February and fed lambs closed mostly $1 lower for the month. Other classes, except fat ewes, which were steady to higher, were off 25 to 75 cents per hundredweight. March top prices at Kansas City this year and last were: beef steers, $7 and $6.50; fed lambs, $9.85 and $5.65; hogs, $4.40 and $4 per hundred pounds. FEEDING OPERATIONS: A reduction of about 12 per cent, or 170,000 head, in the number of cattle on feed in the eleven Corn Belt states on April I this year as compared to April 1 last year, is indicated by estimates of the United States Department of Agriculture. The decrease was ge1:eral,_Nebraska being the only state to show no change. Operations m Kansas were reduced 20 per cent and in Missouri 3 per cent. The Department of Agriculture reported 415,000 lambs in the feed lots of northern Colorado, Arkansas Valley, and Scottsbluff sections on April 7, compared with 500,000 head last year and 590,000 head two years ago. Shipments from _ the three sections from January I to date have totaled 4,480 cars compared with 5,249 cars in 1933 and 5,434 cars in 19p. RANGES: Owing to the mild and open weather, which has prevailed throughout the winter, and despite short feed supplies, livestock has wintered well and is in fair to g~od condition although below normal for the season. Trading and sales have been limited. Losses have been light except in the dry areas where livestock was thin. Calf and lamb prospects are very good. . . Range conditions are reported spotted, varying from fair to good, depending on moisture supplies. Conditions improved slightly in March and on April I were the same as a year ago but substantially below the ten-year average. Growth has started unusually early and spring feed prospects are generally favorable except in the drier areas. Nearly all areas are in need of more moisture. FLINT HILLS PASTURES: According to the April 1 report of the United States Division of Crop and Livestock Estimates, released for publication April 14: "The leasing of pastures in the O~age and Blue Ste~ sectio.ns of Oklahoma and Kansas has been heavier than 111 recent years, wi th an mcrease tn lea~e prices. About 70 per cent of the Blue S:em.past.ures have been leased. This is a much higher percentage than at this time m the past thre~ ye~rs. In the Osage section about 82 per cent of the pastures are leased, which 1s above the leasing to April first in the past three years. "The increased leasing would indicate that more cattle would be grazed than in recent years, with an earlier movement of cattle to the pastures. Lease prices are generally about IO per ~ent hig~er than last season but below past years. Acreage guarantees are slightly higher than last year. Pasture conditions are below average in both areas, but have been improved by rams since the first of April. Osage pasture conditions are lo.~er than last season, while Blue Stem pastures are better than the low cond1t1on a year ago, but there is some shortage of water. Kansas City .............. Omaha.. St. Joseph .................. Denver Oklahoma CitY·-······· Wichita...................... Cattle 95'423 124,657 34,863 24,051 29,660 22,551 "The spring movement of cattle from the southwest (Texas, ~ew Mexico, and Arizona) will be about 5 to 10 per cent larger than last sprmg. Reports indicate an in crease in cattle shipments from each state over last spring's movement." Meat Packing Operations at meat packing plants in the District during March, as indicated by the number of meat animals purchased by packers at the six principal market centers, were substantially larger for beef and 17.9 and 12.8 per cent, respectively, smaller for pork and mutton than in March, 1933. All departments showed increased operations for the first quarter this year over the first quarter last year. The slaughter of cattle and calves in the United States, under Federal meat inspection, during March and the first quarter this year, was larger and of hogs smaller than in ~he like month and three months of any of the five precedmg years. March slaughter of sheep and lambs was the lightest since 1929 and first quarter slaughter the lightest since 1930. Animals slaughtered under Federal meat inspection: Cattle March 1934.............. 771,000 February 1934--······· 733,000 March 1933.............. 617,000 Three months 1934.. 2,335,000 Three months 1933.. 1,798,000 52,070 43,315 38,867 154,939 155,644 Hogs 3,039,000 3,433,000 3,602,000 II,863,000 u,949,000 Sheep 1,242,000 1 , 159,000 1,413,000 3,808,000 3,995,000 Cold Storage Holdings A heavier than usual out-of-storage movement of beef, pork, lamb and mutton, poultry, miscellaneous meats, and creamery butter occurred in March, according to the report of United States cold storage holdings issued by the Bureau of Agricultural Economics. The outgo of cheese and the input of eggs was somewhat lighter than usual and, contrary to seasonal trends, stocks of lard were reduced. Reductions in the burd.ensome storage stock of butter were again heavy, amounting to 21,501,000 pounds as compared with 2,325,000 pounds in March, 1933, and five-year average withdrawals of 8,698,000 pounds. The surplus over the previous year, which stood at 101,000,000 pounds on December 1, is now reduced to 6,097,000 pounds. Record holdings of September 1, 1933, totaled 175,476,000 pounds. Storage stocks of all meats totaled 771,086,000 pounds on April 1, 83,389,000 pounds more than on April I, 1933, but 152 208 ooo pounds less than the five-year average for the dat~. Stocks of 173,414,000 pounds of lard exceeded last year's holdings by II1,740,ooo pounds and the average by 67,403,000 pounds. Government holdings of pork, included in the rep~rt, totaled about 29,000,000 pounds on April I as compared with 52,000,000 pounds on March 1. The seasonal into-storage movement of cased eggs was a third lighter than a year ago and II per cent short of the fiveyear average. April 1 holdings of cased eggs were 16.4 per cent and of frozen eggs 30. r per cent below normal. MARCH MOVEMENT OF LIVESTOCK IN THE TENTH DISTRICT STOCKERS AND FEEDERS RECEIPTS Sheep Hogs Calves Cattle Sheep Hogs Calves 1 5,577 3,120 3,001 24,051 142,900 20,365 *188,603 10,609 1,839 1,235 14,298 198,282 153,668 7,57 2 1,194 6,857 u5,071 4,758 8,742 39 1 95,148 14,168 581 2,654. 8,963 46,649 4,805 197,677 4,911 4,006 3 1,9 23 27,9 13 1 5,583 6,203 629,810 588,518 331,205 51,693 March I 934·-············· 545,76z 7oo,574 49,197 319,295 February 1934·····- ····· 667,213 729,585 250,516 March 1933................ 34,729 z54,6o5 2,358,596 1,745,401 Three months 1934·-· 1,037,290 121,026 2,306,396 1,814,074 Three months 1933 ___ 830,996 *Includes I I 3,707 hogs shipped direct to packers' yards. Caliv.es 534,000 437,000 398,000 1,442,000 1,060,000 7,281 6,844 6,288 28,846 28,920 6,734 5,587 5,334 19,183 16,519 47,2n 50,650 40,019 158,745 143,820 73,916 27,3 17 10,740 19,022 8,224 FoR SLAUGHTER Sheep Hogs 109,388 •174,581 IIS,957 140,552 6,337 8,228 91,324 94,459 2 10,990 2,672 4,752 27,883 4,7 1 9 3,765 26,228 14,939 3,484 196,018 197,206 154,o99 629,439 474,714 485,320 353,45 2 43,00 7 327,928 592,158 36,999 405,506 25,980 590,781 121,712 1,993,814 1,068,053 1,041,u6 75,575 1,991,287 PURCHASED Cattle 56,799 Calves 18,521 =============================================7 THE MONTHLY REVIEW United States cold storage holdings as reported by the Bureau of Agricultural Economics: *Apr. I Mar. I Apr. I Apr. I 1934 1933 5-Yr.Av. 1934 62,317 Beef, lbs.·- - -········································· 55,905 64,745 33,781 Pork, lbs............................................... 657,466 733,956 610,240 784,213 Lamb and mutton, lbs ..................... _ 2,023 3,052 1,818 2,877 Poultry, lbs........................................... 74,201 101,776 67,285 77,274 **Turkeys, lbs......................................... 14,354 19,177 12,765 II,017 Miscellaneous mc,:ts, lhs ...·-··············· 55,692 65,548 41,858 73,887 Lard, lbs..... .......................................... 173,414 176,044 61,674 1o6,011 Eggs, cases............................................ 1,207 90 1,833 1,443 Eggs, frozen (case equivalent) .......... 1,106 1,II9 1,288 1,582 Butter, creamery, lbs.·--····················· l 5,352 36,853 9,255 14,489 Cheese, all varieties, lbs..................... 62,155 67,819 48,806 56,338 *Subject to revision. **Included in Poultry. (ooo omitted). NOTE: Figures do not include" Dry Salt Rough Sides" held for the account of the Government under the Emergency Hog Control Program but do include meats held for the Federal Surplus Relief Corporation. Petroleum Estimated production of crude oil in this District, as indicated by the weekly reports of the American Petroleum Institute, was 11 per cent larger in March than in the shorter month of February. Daily average production was only 0.3 per cent greater, totaling 676,000 barrels or 30,900 barrels in excess of allowables set by the Federal Administrator. Output, as compared to the official reports of the Bureau of Mines for March, 1933, was 2.7 per cent less than a year ago. First quarter production was 7.3 per cent above the 1933 flow. The Federal Oil Administration authorized allowable production in the United States for April and May to be increased 83,400 barrels per day over March. New daily average allowables for the states in this District are: Oklahoma, 476,000; Kansas, 122,100; New Mexico, 45,800; Wyoming, 32,400; Colorado, 3,000; and the five states 679,700 barrels. March allowables for the five states totaled 645,100 barrels. Gross and daily average production of crude oil in the five states and the United States: GROSS PRODUCTION *Mar. 1934 Barrels Oklahom a..._................................ . 14,856,000 Kansas ......................................... . 3,754,000 Wyoming..................................... . 951,000 81,coo Colorado.---································· 1,308,000 1 ew Mexico·----························· Feb. 1934 Barrels 13,495,000 3,217,000 893,000 83,000 1,186,000 Total five states.......................... 20,950,000 18,874,000 Total nited States.................... 72,396,000 65,450,000 DAILY AVERAGE PRODUCTIO *Mar. 1934 Feb. 1934 Barrels Barrels Oklahoma._.................................. . 479,000 482,000 Kansas ......................................... . 1-::1,000 n5,ooo Wyoming.............................. ...... 31,000 32,000 Colorado... _.................................. . 3,000 3,000 42,000 42,000 'ew Mexico.·-···························· Tota! five states.. ........................ 676,<XX:> Total United States.................... 2,335,000 *Estimated, American Petroleum Institute. Mar. 1933 Barrels 15,699,000 3,597,000 980,000 87,000 1,175,000 21,538,000 75,302,000 Mar. 1933 Barrels and closed lower. Kerosene, fuel oils, and other refined products were mostly steady and unchanged. Field work, encouraged by extensive purchases of promising acreage and important new discoveries, expanded and the personnel was enlarged. Stocks of crude oil reported to the Secretary of the Interior, Administrator of the Petroleum Code, by companies holding 100,000 barrels or more, aggregated 339,II6,ooo on March 3 and 341,363,000 barrels on March 31. Bituminous Coal Bituminous mines in the six coal producing states of the District had, as estimated from the weekly reports of the United States Bureau of Mines, an output of 1,586,000 tons of coal in March this year as compared to 1,187,000 tons in March last year. Contrary to seasonal tendencies, production exceeded the February tonnage by 5 per cent. Tenth District production for the first three months of the calendar year was 5.7 per cent and United States production was 32.6 per cent above that of a year ago. The estimated production figures for March are shown in the following table by states: Colorado.---················ ............... . Kansas and Missouri .................. N cw Mexico·--··-························· Oklahoma·---·······-······················ Wyoming..................................... . 16,000 32,000 3,000 38,000 674,000 2,338,000 Posted prices of mid-continent crude oil remain unchanged, selling up from 76 cents per barrel for low gravity oil to $1.08 per barrel for oil testing 40 degrees and over. A year ago the price range was from 28 cents to 52 cents per barrel. Natural and refinery ga oline prices were weak throughout the month 570,oco 96,000 89,000 358,000 Feb. 1934 Tons 454,ooo 530,000 92,000 124,000 310,000 Mar. 193.1 Tons 379,000 427,000 80,000 44,000 257,000 Total six states............................ 1,586,000 1,510,000 1,187,000 Total United States.................... 38,392,000 31,970,000 23,685,000 *Estimated from the weekly reports of the United States Bureau of Mines. Zinc and Lead Shipments of zinc ore from mines in Missouri, Kansas, an<l Oklahoma declined 2.6 per cent for the four weeks' period ended March 31 as compared to the preceding four weeks ended March 3, whereas deliveries of lead ore advanced 54.3 per cent. Compared to the exceedingly small movement during the like period a year ago, zinc ore shipments were 82.6 per cent and lead ore shipments 53.8 per cent larger. Although deliveries of concentrates for the three months' period were fractionally lighter than a year ago, prices were higher and the value of zinc ore shipments showed a gain of 61.3 per cent and of lead ore a gain of 29.8 per cent. Shipments and value of concentrates from the Tri-state district for the periods of comparison: ZINC ORE LEAD ORE Oklahoma._.. _.................................. . Kansas.·-·········································· Missouri ......- - - - - - - - Tons Value 17,668 f, 530,040 2,614 78,420 1,055 31,650 Tons Value 2,632 f, I1t,860 133 5,652 6o 2,550 4 Weeks ended Mar. 31, 1934...... 4 Weeks ended Mar. 3, 1934...... 4 Weeks ended Apr. I, 1933...... 13 Weeks ended Mar. 31, 1934...... 13 Weeks ended Apr. 1, 1933...... 21,337 f, 640,IIO 21,912 647,470 II,682 207,524 68,889 1,946,879 69,5 17 1,207,328 2,825 f, 120,o62 1,831 77,8 17 1,837 63,396 278,8o6 6,526 6,568 214,788 5o6,ooo l *Mar. 1934 Tons 473,000 Prices of zinc ore declined '/,2 per ton the closing week of March to $28 per ton. Lead ore prices remained constant at $42. 50 per ton. Both ores closed 'f,10 per ton higher than a year ago. 8 THE MONTHLY REVIEW Business Conditions in the United States By the Federal Reserve Board ,... P[RC(NT PnlC[Nl 1'0 INDUSTRIAL PRODUCTION 130 130 120 ...,,A. 120 \ 110 110 ~ 100 \ 90 80 100 I\ ~ 70 90 I\ ,, I \' '/\ 80 70 \. r- V - 60 so 1930 1931 1932 1933 60 193', 50 Index number of industrial production, ad1ustcd for seasonal variation. Latest figure, March, 84. MILLIOJrl.SO( DOlLARS MllltOMSOrDOLURS 600 600 400 1--::Y...::.~-+----+- - t - - --t----; ~oo 300 1929 Three month moving averages of F. W. Dodge data for 37 eastern states, adjusted for seasonal variation. Latest figure based on data for February and March and estimate for April, total 142.2; residential, 20.2; all other, 122.0. P fRCfN T P!'.:ACV\IT 120 120 WHOLESALE PRICES 90 -i---±a=-----160 30 --=1q:-:::zq;------:-=193:-::-o---'-----,1:-::-931:--'-1q--=32__.__1q-33---'1q31,......., 30 Indexes of the United States Bureau of Labor Statistics. By months 1929 to 1931; by weeks 1932 to date. (1926=100.) Latest figure, April, 14; farm products, 60.5; foods, 65.8; other commodities, 78.9. &llLI0,. 5 01' OOLL,.AS 7 91LLIOHSOrooLlA."1.S MEMBER BANK CREDIT 1932 Volume of industrial production increased further in March and there was considerable growth in factory employment and payrolls. The general level of commodity prices showed little change between the middle of March and the middle of April but in the third week of April there was a sharp decline in grain prices. 7 1933 Wednesday figures for reporting member banks in 90 leading cities. Latest figures arc for April II. PRODUCTION AND EMPLOYMENT: Output of manufactures and minerals, as measured by the Federal Reserve Board's seasonally adjusted index of industrial production, advanced from 81 per cent of the 1923-1925 average in February to 84 per cent in March. This advance reflected chiefly increases of more than the usual seasonal amount in the output of steel, automobiles, and lumber, and an increase contrary to seasonal tendency in the output of coal. Production of textiles ·sbowed little change in volume on a daily average basis. In the early part of April, activity at steel mills and automobile factories increased further, according to trade reports, while coal production declined by a more than seasonal amount. Volume of employment at factories increased further between the middle of February and the middle of March by about 4 per cent, an amount larger than is usual at this season. Employment on the railroads and at mines also showed an increase. The number on the payrolls of the Civil Works Administration was reduced from about 3,700,000 in the middle of February to about 2,400,000 in the middle of March and 1,900,000 at the end of the month. The value of construction contracts awarded in March, as reported by the F. W. Dodge Corporation, showed a considerable increase from the low level of February, followed, in the first half of April, by a decline. For the first quarter, as a whole, the value of contracts was somewhat smaller than in the last quarter of 1933; publiclyfinanced projects continued to make up about three-fourths of the total. DISTRIBUTION: Volume of freight carloadings showed a further increase in March, reflecting chiefly seasonal increases in shipments of merchandise and miscellaneous freight and a continued large V<?lume of coal shipments, which usually decline in March. In the early part of April, total carloadings showed a decline, reflecting a sharp reduction in coal shipments. Dollar volume of trade at department stores increased in March by considerably more than the estimated seasonal amount, after allowance for the early date of Easter this year. PRICES: The general level of wholesale commodity prices, as measured by the index of the Bureau of Labor Statistics, was 73.3 per cent of the 1926 average in the week ending April 14 as compared with 73.8 per cent in the week ending March 10. During this period, prices of steel, copper, and automobiles ,advanced, while prices of farm ' products decreased somewhat. In the third week of April, wheat prices declined sharply and there were also declines in the prices of other grains, cotton, and silver. BANK CREDIT: During the four weeks ending April 18 member bank reserve balances increased by $220,000,000, raising the volume of reserves in excess of legal requirements to $1,600,000,000. This increase reflected a growth of $105,000,000 in the monetary gold stock and further disbursements by the Treasury of funds from its cash holdings and its deposits with the reserve banks. At reporting member banks in leading cities an increase of '1,400,000,000 in net demand and time deposits for the four-week period ending April II reflected chiefly the deposit by the public of funds disbursed by the Treasury, as well as a growth in bankers' balances. Government deposits were reduced by about '1,200,000,000. Holdings by these banks of securities, other than United States Government obligations, increased by $64,000,000 and their loans, both on securities and all other, also increased slightly, with the consequence that total loans and investments showed a growth of $100,000,000 for the period. Money rates in the open market declined further in April. Rates on prime four to six month commercial paper were reduced from a range of 1- 1¼ per cent to 1 per cent and rates on 90-day acceptances were reduced from ¼percent to a range of Ys-Ii per cent. Yields on Government securities also declined.
@FedFRASER