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THE MONTHLY REVIEW
Of Agricultural, Industrial, Trade, and Financial
Conditions in the Tenth Federal Reserve District
FEDERAL
Vol.
22
RESERVE
BANK
OF
KANSAS
KANSAS CITY, M1ssouRI, MAY r, 1937
T
HE agricultural situation in the Tenth District early this
spring appears to be, on the whole, more favorable than
in several years. Farmers have been encouraged by
rising prices of farm products, grain and live stock prices reaching the highest general level in seven years or more. Despite
relatively small marketings of grains and live stock, cash farm
income from these sources, augmented by Government payments, was about 10 per cent greater in the first two months
of 1937 than in the first two months of 1936. Moisture supplies,
while still inadequate in those areas where drought conditions
were most severe last summer and fall, have been above normal
so far this year. Winter wheat was in fairly satisfactory condition in the principal producing areas of the District. Prospects for irrigation water are good.
Unfavorable factors include low temperatures in March that
retarded growth of winter wheat and pastures, thus further
accentuating the severity of the feed grain shortage. Sharply
fewer cattle than a year ago were on feed for market on April
I this year and rapidly advancing feed grain prices have resulted in unfavorable live stock feeding ratios. Ranges and
pastures show the cumulative effect of several years of drought
and overgrazing although cattle pastures in the Blue Stem
section of Kansas and the Osage section of Oklahoma were
commanding the highest lease prices since 1931. Farm work
was backward as a result of the cold weather. The delay in
seeding oats may result in some increase in corn acreage.
Business activity in the District showed considerable expansion in March as indicated by gains of 22 per cent in the
volume of payments by check, of 20 per cent in wholesalers'
sales, and of 30 per cent in department store sales. However,
department store sales showed less than the usual seasonal
increase in view of the early date of Easter this year. Value
of construction contracts awarded declined but there was a
substantial further increase in building permits in reporting
cities, accompanied by an increase in retail sales of lumber.
Production of bituminous coal declined but output of flour
and crude petroleum continued to increase. Output of coal
was the largest for March since 1927 while the production of
flour and crude petroleum reached a new high level for March.
Shipments of zinc and lead also increased. Operations at meat
packing plants increased seasonally, the slaughter of cattle and
calves exceeding the March ten-year average.
CITY
No. 5
BUSINESS IN THE TENTH FEDERAL RESERVE DISTRICT
March 1937
3 Mos. 1937
compared with
compared with
Feb. 1937 Mar. 1936 3 Mos. 1936
Banking
~ c e n t increase or decrease)
Payments by check, 30 cities.................... +21.6
+2.0.4
+15.4
Federal Reserve Bank check collections.. +28.3
+16.3
+7.7
Business failures, number.......................... +64.5
+8.5
-20.6
Business failures, liabilities........................ +72.1
-54.5
-38.2
Loans, 51 member banks·--·······················
+3.2
+16.2
Investments, 51 member banks................
-3.6
+7.9
Adjusted dem. deps., 51 member banks..
-o.6
+10.4
Time deposits, 51 member banks·---·······
+0.1
+0.7
Savings deposits, 45 selected banks·-·······
+0.1
+3.7
Savings accounts, 45 selected banks........
-o.6
+x.3
Distribution
Wholesalers' sales, 1 5 lines combined ..... . + 19.5
+10.7
+11.7
Retailers' sales, 37 department stores.-.. . +30.3
+11.1
+8.3
Lumber sales, 157 retail yards ................. . +28.9
-5.2
- 13.3
+1.0
Life insurance, written·--··························· + 27.3
+9.3
Construction
-20.6
Building contracts awarded, value·-··-·····
-6.9
+5.8
Residential contracts awarded, value ... .. . +51.7
+84.6
+50.6
Building permits in 18 cities, value·-······· +78.9
+69.8
+9.2
Production
+26.1
+n.8
Flour ·-························································· +16.1
+20.9
+ 1 9.3
Crude petroleum·-······································· +n.9
Bituminous coal.. ...................·---·····
-6.6
+51.2.
+15.1
Zinc ore (shipped) Tri-State district....... .
+10.3
+7.8
+3.8
Lead ore (shipped) Tri-State district......
+14.4
+4 2·9
+55·2
Grain receipts, 5 markets
Wheat._ ........................................................ . + 27.3
+3.6
+H
Corn ..............................................................
+s.6
-49. 1
-36.3
+6.o
-l4.5
+ 1 3.4
Oats·---···································----·
Rye ............................................................... . +361.5
-48.2
-42.3
-65.7
-69.5
BarleY- - - - · · · · ·································· +n6.3
Kafir............................................... .............. . -10.9
-59.6
-39.8
Live stock receipts, 6 markets
-1.3
-7.1
Ca t t l e . · - - - - - - · - - +34.5
Calves. __ ········
........................... +30.0
+ 23.9
+19.9
Hogs.................................. _ _ __
-15.0
-2.5
- 14.4
Sheep.......................................... _ __
+16.1
+o.8
-4.5
Stocker and feeder shipments, 4 markets
Cattle.. ......................................................... . +71.2
-1.4
+0.9
+37.0
+39.3
Calves·--······················································· +87.5
Hogs ...................... ...................................... +91.6
-21.6
+ 13.9
Sheep............... .
-l9.7
+ 1 9.4
+ 25·3
Meat packing, 6 markets
Cattle .......................................................... . + 1 7.5
-8.2
-1.4
+12.1
+18.9
Calves·--····················-·································· +16.8
Hogs........................................... .................. .
-2..1
-8.6
-8.5
Sheep .......................... _ _ __
+22.6
+8.2
+5.2
Member Bank Operations
Loans and investments of weekly reporting banks in the
Tenth District declined further during the five weeks ended
April 7, reflecting principally a further decrease in holdings of
United States Government obligations. Holdings of direct
obligations on April 7, although $13,353,000 larger than a year
ago, showed a decrease of nearly that amount for the five weeks
and had declined '$2 I ,304,000 since the middle of January.
The rather active liquidation which was under way around
the middle of March was apparently halted, however, early
in April when holdings of Government securities showed a
small increase. Volume of commercial loans continued to
expand and on April 7 was above last year's high level reached
on December 30. Security loans, which had shown little
change in recent months, increased during March.
Following the increase in reserve requirements effective
March I, reserve balances of reporting banks reached a new
high level of $164,014,000 on March 10. Since that date,
reserves declined, dropping back to near the figure }or March
'2
THE MONTHLY REVIEW
3. Demand and United States Government deposits decreased
Bank Debits
and there was a substantia] decline in bank balances. At the
end of March, demand and inter-bank deposits were at the
lowest level of this year.
The principal items of the consolidated weekly condition
statements of fifty-one reporting member banks:
Debits to individual accounts by banks in reporting centers
increased by somewhat more than the usual seasonal amount
in March, rising 20 per cent above the total for March of last
year. Payments by check for the first quarter of 1937 showed
an increase of about 15 per cent over the same period in 1936.
Debits to individual accounts by banks in thirty Tenth
District cities:
Change from
Mar. 3
Apr. 8
1937
1936
thousan~f dollars_)_
693,553
-8,540
+67,416
Apr. 7
1937
On
Loans and investments-totaL ....................
Loans and discounts
Secured by stocks a11d bonds ....................
All other loans and discounts....................
Investments
U. S. Government direct obligations·-- ···
Oblig. fully guaranteed by U. S. Govt...
Other securitie~---- - Reserve with F. R. Bank ..............................
Demand deposits-adjusted .... ......................
Time deposits ...... - - -- ·······················
U.S. Government deposits ............................
Inter-bank deposits ........................................
55, 2 4 2
197,648
257,982
44,76 1
137,920
156,179
477,143
145,846
5,389
372,280
-12,849
-3,oo3
+13,353
+2,341
+16,452
-535
+3,556
-3,065
+52,9 2 5
+45,106
+132
-1,420
-I'.2.,543
+1,031
- 13,053
+22,872
Reserve Bank Operations
Principal changes from March 3 to April 7 in the weekly
condition statements of this bank included a reduction in holdings of United States Government securities and further additions to member banks' reserve deposits. In the week ended
April 7, holdings of Government securities were reduced by
about 4 per cent, reflecting an adjustment in the amount of
this bank's participation in the Government securities holdings
of the Federal Reserve System. Holdings of Treasury notes
declined $8,818,500 and Treasury bills $746,000, these decreases
being offset in part by an increase of '$5,077,500 in holdings of
Government bonds. Member bank reserve balances rose about
4 per cent during the five weeks although reserves on April 7
were slightly below the high level reached on March 10. The
first half of the recent increase in reserve requirements went
into effect on March I, the remaining half to become effective
May 1.
The principal items of the weekly condition statements of
the Federal Reserve Bank of Kansas City and branches:
Ch:1nge from
Apr. 7
Mar. 3
Apr. 8
1937
1937
1936
thousan~f dollars_)_
Total reserves ................ _ _ _ _ _
280,623
+10,320
+58,917
Bills discounted·----·························
190
-136
-190
Bills purchased................................................
87
-46
Industrial advances.......... _ __ _
714
-19
-450
Commitments to make industrial advances
139
-14
-5II
U.S. Government securitie._ _ __ _ _
I22,II4
-4,487
+5,270
Total resources ... ·----······················
441,645
+2,829
+68,434
F. R. notes in circulation ........ _ _ _ _
160,354
-60
+15,426
Member banks' reserve deposits..................
232,288
+8,231
+72,016
The discount rate of the Federal Reserve Bank of Kansas City, on all classes
of paper and all maturities under Sections 13 and 13a of the Federal Reserve
Act, remained unchanged at 2 per cent, this rate having been in effect since
May 10, 1935.
On
Check collections through this bank and branches, following
a less than seasonal decrease in February, showed a greater
than seasonal increase during March. Dollar volume in March
was about 16 per cent and in the first quarter of the year nearly
8 per cent greater than a year ago.
Check collections through the Federal Reserve Bank of
Kansas City and branches:
hEMS
~
March._ ............ .
February..........
Three months..
6,700
5,220
17,34 2
AMOUNT
1936
1937
thousands_)_
6,109
$1,069,392
5,05 1
833,489
16,873
2,847,6t 4
On
1936
$ 9 19,545
794,955
2,643,719
Change from
Feb. 19.17
Mar. 1936
(In thousands of dollars)
13,943
+1,358
+3,485
3,716
+440
+773
31,205
+8,196
+8,453
5,180
+563
+444
8,938
+2,191
+2,009
20,301
+3,741
+5,489
191,091
+29,899
+.11,281
3,270
+466
+128
10,380
+2,600
+1,957
2,804
+728
-132
4,107
+986
+1,371
1,837
+3
+9 2
12,753
+876
+ 2,737 .
2,898
+353
+580
n,346
+ 2,237
+1,987
14,888
+2.010
+3,8{n
327,435
+51,708
+45,48l
3,883
+484
+ 2 :3
30,720
+7,392
+3,727
8,255
+1,182
+258
II7,937
+27,5 17
+2 5, 2 35
3,578
+1,II4
+483
163,021
+25,520
+14,978
4,483
+845
+47 2
19,189
+3,064
+6,876
9,434
+898
+2,326
27,639
+3, 151
+559
17,359
+ 1, 159
+ 1,787
158,915
+37,620
+41,461
51,975
+9, 28°
+9,074
Mar. 19.17
Albuquerque, N. M.·--···············
Atchison, Kans.·-- - ·····················
Bartlesville, Okla.·--···················
Casper, Wyo.·-- ···········-···············
Cheyenne, Wyo ...........................
Colorado Springs, Colo.·--·········
Denver, Colo ...............................
Emporia, Kans .._. ...................... .
Enid, Okla .................. ·····-··········Fremon t, Nebr.._.........................
Grand Junction, Colo ......... -.......
Guthtie, 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.·- - ········· .............. .
Tu Isa, Okla.·-·-··-···········-········......
Wichita, Kans ............. ············-··
District, 30 cities ....................... .
United States, 141 cities ............
1,282,480
42,003,030
+227,581
+7,476,735
+217,541
+4,507,502
Trade
DEPARTMENT STORE SALES: Department store sales
in the Tenth District showed less than the usual seasonal increase from February to March when allowance is made for
the early date of Easter. March weather was generally unfavorable for the movement of spring merchandise, the increase
in dollar volume amounting to about 30 per cent as compared
with an increase of 40 per cent in 1934 when Easter was also
early. However, the general level of sales has increased considerably during the past three years and retail prices have
advanced. March sales were about 11 per cent greater than a
year ago and in most cities the month had one more business
day this year than last. As a result of the large March gain
over last year, total sales for the first three months of 1937 were
about 8 per cent larger than in the same period in 1936.
Retail prices, although tending to rise less than wholesale
quotations, continued the uninterrupted advance which began
on August I of last year, according to the Fairchild Retail
Price Index. Prices gained almost one per cent from M::i.rch I
to April I, at which time the index stood at a level about 7 per
cent above a year ago and about 36 per cent above the low
point reached on May 1, 1933. However, present prices are
yet 20 per cent below the level of November, 1929.
Stocks of merchandise increased further during March and
at the close of the month were about 14 per cent larger than
on March 31, 1936. Inventories were the largest for the March·
31 date since 1932. Collections on open accounts averaged
THE MONTHLY REVIEW
46.3 per cent of receivables in March, 43.8 per cent in February,
and 44.0 per cent a year ago. Installment collections averaged
15.8 per cent in March as compared with 14.4 per cent in
February and 16.5 per cent in March of last year.
Department store sales and stocks in leading cities of the
District:
SALES
STOCKS
Number Mar. 1937 3 Mos. 1937
Mar. 31, 1937
of
compared to compared t.o
compared to
Stores
Mar. 1936 3 Mos. 1936 Feb.28,1937 Mar.31,1936
(Per cent increase or decrease)
Denver______________ 4
+9.6
+10.3
+11.9
+ 1 5.4
Kansas City ____ 4
+10.8
+1.8
+ 17.7
+ 13.7
OkJahoma City 3
+14.0
+4.6
+5.1
+4.4
Omaha ____ __________
-2.6
3
Tulsa. ______________
+2.2
+22.5
+12.7
+13.1
3
Wichita ___________
+13.2
+11.9
+4.6
+9.1
3
Other cities ...... 17
+14.8
+14.9
+4.6
+3.9
District.___________ 37
+II.I
+s.3
+5.9
+ 1 3.5
RETAIL SALES: Dollar volume of March sales of independent retail stores in the District, without adjustment for
the extra business <lay this year, generally showed an increase
over sales for March of last year. Increases were most noticeable at apparel, country general, department, and grocery
stores, while sales of lumber and building material dealers and
at drug stores generally showed only a small increase. In about
half of the states in the District, retail hardware sales were
less than in March a year ago.
Sales of independent retail stores, by states, reported by the
Department of Commerce:
March 1937 per cent change from March 1936
Colo.-Wyo.
Kans.
Mo.
Nebr.
Okla
AppareL________
+ 29.0
+16.1
+20.3
-0.9
+8.1
Country general______________
+5.5
+8.9
+10.8
+9.2
+19.4
Department______________________
+0.2
+22.0
+16.7
+II.5
+14.9
Drug__________________________________
+0.4
+0.2
+0.5
-3.2
+0.7
Grocery_ _ _ _ _
+14.8
+10.6
+II.4
+6.4
+10.3
Hardware____ _____________________
+24.3
+1.6
-1.9
-6.o
-18.6
Lumber and materials....
+18.7
+3.2
+2.1
+0.3
-9.1
Motor vehicle____ __ ____________
+14.2
+5.4
+14.4
-10.9
+4.0
, WHOLESALERS' SALES: Wholesale distribution in the
District, as reflected by the combined dollar volume of sales
for fifteen trade groups, increased by about 20 per cent from
February to March and exceeded the volume of sales in March
of last year by nearly 11 per cent. Of the major lines, furniture
and house furnishings showed relatively the greatest increase
in sales over a year ago. The increase in sales of paper and
paper products, dry goods, and groceries and foods was about
the same as the combined increase, while sales of drugs and
drug sundries and hardware showed relatively the smallest
percentage gain. Total sales for the first three months of this
year were nearly 12 per cent larger than in the same period
of 1936.
Wholesalers' sales and collections, reported by the Department of Commerce:
No. of
Firms
Drugs________________
Dry goods ________
Furniture__________
Groceries__________
Hardware________
Paper_______________
All other lines..
9
4
4
12
6
5
17
SALES
Mar. 1937
3 Mos. 1937
compared to compared to
Mar. 1936
3 Mos. 1936
(Per cent change)
+5.7
+9-4
+9.8
+20.9
+19.7
+19.4
+s.6
+5.0
+2.7
+11.7
+26.0
+9.0
+46.3
+20.0
*COLLECTIONS
No. of Mar. Feb. Mar.
Firms 1937 1937 1936
(Median p~tages*)
9
82.5 83.6 78.3
5
54.7 64.2 47.8
4
47.8 48.6 42.6
II
99.0 97•9 90.0
6
43.2 47.2 39.9
5
62.4 62.0 58.2
District__ __________ 57
+10.7
+II.7
*Amounts collected during month on receivables at beginning of month.
3
Percentages of collections on accounts receivable were generally slightly lower in March than in February, but all groups
showed a much higher average collection percentage than in
March of last year. It should be pointed out that the wide
differences existing between the percentages for various kinds
of business are due principally to variations in the terms of sale.
Lumber
After four successive monthly declines, retail - lumber ··sales
increased in March as spring building operations got under
way. Footage sales for March, however, fell about 13 per cent
and for the first quarter of 1937 about 5 per cent below a year
ago, when the seasonal expansion in lumber sales and the improvement over the preceding year were quite marked. Dollar
sales of lumber and other materials also increased during
March, exceeding by a slight margin the dollar volume in March
of last year. Retail lumber prices have begun to reflect the
rather sharp increases put into effect by wholesalers and manufacturers.
Stocks of lumber at the close of March were only slightly
larger than one month earlier but were nearly 15 per cent
larger than one year earlier. Collections improved during
March, averaging 41.9 per cent of outstandings at the opening
of the month as compared with 35.4 per cent in February
and 45.0 per cent in March, 1936.
March business at 157 reporting retail yards in the District:
March 1937
per cent change from
February 1937
March 1936
Sales of lumber, board feet____________
+ 28. 9
-13.3
Sales of all materials, dollars____________________________
+38.1
+2.3
Stocks of lumber, board feet, end of month..
+1.5
+14.6
Outstandings, dollars, end of month________________
+5.4
+17.8
Building
The number and value of permits for new construction,
alterations, and repairs in eighteen cities in the District showed
a substantial further increase in March. About half of these
centers reported fewer permits than a year ago but only two
failed to show a rather heavy increase in estimated expenditures. Value of permits for the first quarter of 1937 was about
9 per cent larger than in the same period of last year despite
the decreases recorded in January and February.
Building permits reported by the eighteen cities:
Albuquerque, . M. _________________
Cheyenne, Wyo.
Colorado Springs, Colo. ____________
Denver, Colo .....
Hutchinson, Kans.
Joplin, Mo. ________________
Kansas City, Kans. ____________________
Kansas City, Mo. _______________________
Lincoln, Nebr
Oklahoma City, Okla, ________________
Omaha, Nebr.
Pueblo, Colo
Salina, Kans
Shawnee, Okla...
St. Joseph, Mo. ___
Topeka, Kans
Tulsa, Okla .. __________
Wichita, Kans ...
March___________
February_______
Three months __
PERMITS
1936
1937
~
87
67
43
67
37
540
375
II2
61
22
23
39
56
206
169
229
144
76
II
13
28
80
II0
193
250
214
232
123
54
21
16
23
IOI
II8
215
2,194
1,238
4, 275
2,023
784
3,680
EsTIMATED CosT
1936
'/, 254,000
'$ 75, 000
319,000
73,000
66,ooo
18,000
1,145,000
647,000
42,000
145,000
81,000
20,000
000
44,000
57,
502,000
298,000
198,000
113,000
814,000
529,000
281,000
227,000
20,000
49,000
40,000
39,000
21,000
8,000
38,000
13,000
109,000
408,000
806,000
279,000
188,000
239,000
:211.
$5,163,000
2,886,000
9,728,000
$3,042,000
3,440,000
9,091,000
The value of construction contracts awarded in the Districtduring March was slightly less than in February and about 21 per
THE MONTHLY REVIEW
4
cent less than"'a year ago."f These decreases reflected a reduction
in•. the volume 'of non-residential construction since awards for
residential building were half again as large as in either the
preceding· month or the corresponding month of last year.
However, first quarter awards were at the highest level since
1931, total awards being about three times and residential
awards more than five times as large as in the first three months
of 1933.
The value of construction contracts awarded, reported by
the F. W. Dodge Corporation:
TENTH DISTRICT
37 EASTERN STATES
Total
Resident:al
Total
Residential
(In thousands of dollars)
90,168
3,889
231,246
63,004
2,564
188,533
10,520
2,582
199,028
55, 2 7 1
27,010
9,939
662,6o6
231,578
2 5,5'29
123,886
5,383
545,871
March 1937..................
February 1937•--·········
March 1936................. .
Three months 1937._.__
Three months 1936... _.
Grain Marketing
Marketings of grain increased somewhat during March,
encouraged by higher market prices and more favorable weather
conditions. While generally smaller than in March of last
year and below the March average for the past ten years,
marketings nevertheless were of fairly Ii beral proportions in
view of diminishing country holdings. Receipts of wheat were
29, corn 56, barley 16, and kafir 85 per cent below the March
average while receipts of oats and rye exceeded the average
by 29 per cent.
Receipts of grain at five markets in the District:
Wheat
Hutchinson ......................
Kansas CitY·---···············
Omaha..............................
St. Josep
Wichita·---·······················
March 1937......................
February 1937·-- ·············
March 1936......................
Three months 1937·--·····
Three months 1936·---···
Corn
Oats
Rye
Barley
(In tho~s of ~ e l s ) - -
819
3
2,635
893
961
224
8
220
948
220
2,089
1,923
4,104
6,318
9,917
1,391
1,312
1,627
4,005
629
1 57
59 1
4,831
3,795
4,674
12,534
12,098
5
5
55
42
42
9
3
3,531
Kafir
48
4
6o
13
104
86
166
93
43
271
193
633
57
64
141
218
362
Farm stocks of grain on April 1 were markedly lower than
a year ago, particularly of corn. In comparison with average
holdings on April I for the years 1928 to 1932, the reduction
in grain stocks was even more striking, as evidenced by 64
per cent less wheat, 89 per cent less corn, and 40 per cent less
oats remaining on farms in the District this spring than during
those years. The extremely small corn supplies helped to
explain the continued rather free movement of Argentine corn
into most of the Kansas City trade territory.
Grain stocks on farms on April I, reported by the Department of Agriculture:
CORN
OATS
1937
1936
1936
~
(In th~nds of bushels)
1 ,575
1,176
2,061
2,6o7
2,919
j,736
5,765
6,759
9,794
924
2,180
i,080
7,466 14,375
8,799
5,801
5,57 2 43,7 29
9,9 15 33,444
862
6o
82
15
57 1
1,999
2,316
6,809
4,064
8,598
688
III
368
1,732
377
WHEAT
~
Colorado
Kansas ....
Missouri ....................
Nebraska..................
New Mexico.----·····
Oklahoma..·--···········
Wyoming
1,176
5,412
1,413
4,734
41
1,651
Seven states·--·········
United States·----···
14,648
71,723
221
1936
17,941
98,978
19,250 76,807
4II,980 816,058
31,540 62,791
287,745 493,787
Cash prices of nearly all grains advanced at the Kansas City
market in March, corn gaining about 10 cents and wheat about
7 cents per bushel. There was a slight decline in wheat prices
in the forepart of April, while corn prices advanced further.
Cash grain prices at the Kansas City market:
Apr. I 5 Mar. 31 Feb. 27 Apr. I 5 Mar. 31 Mar.30
1937
~
:fil 1936 1936 1935
$1-;;;;-- $ .97;,i
No. 1 hard, dk. wheat, b11. $1.37
.98¼
$1.41¼ $1.34
No. 2 mixed corn, bu ..... 1.36
.62½
.85
1.30½ 1.21
.64½
.26
No. 2 white oats, bu .......
.51½ .28
.53
.53½
.55
.68
I.IO
No. 2 rye, bu ................... 1.07
1.04
.52½
.53
No. 2 barley, bu.·----·····
.92
.90
.90
.45
.45
.74
1.02
I.II
No. 2 white kafir, cwt ..-. 2.34
2.29
2.09
1.92
Farm Income
February receipts from the sale of principal farm products
and Governm ent payments in the seven states of the District,
while about 16 per cent less than in January, were 14 percent
larger than a year ago. Increased income from rental and benefit payments, which were temporarily suspended in February
of last year, was the important factor in this gain since an
increase in income from marketings of crops was not sufficient
to overcome a decrease in income from marketings of live stock
and live stock products. Farm income was larger than a year
ago in all states in the District except Missouri and Nebraska,
the increase being most pronounced in Kans as.
Cash farm income from the sale of principal farm products
and Government payments during February, estimated by
the Department of Agriculture:
Crops
Colorado............................
l(ansas ..............................
Missour·
Nebraska..........................
New Mexico..·-·-···············
Oklahoma·--·····················
Wyoming
2,993
6,186
1,916
3,387
506
1,520
433
Live stock
Govt.
payments
and products
(In thousands of dollars)
6,181
701
10,248
3,816
1,317
10,675
I 1,605
1,583
1,022
1,368
3,046
5,287
180
97 2
February 1937·- ···············
16,941
46,336
January 1937•--······· .......
20,136
60,065
February 1936._...............
9,983
55,720
Two months 1937............
37,077
106,401
Two months 1936............
27,492
121,181
*Negative payments represent credits due to returned
cultural Adjustment Administration.
Total
9,875
20,250
13,908
16,575
2,896
9,853
1,585
11,665
74,942
8,640
88,841
• -17
65,686
20,305
163,783
300
148,973
checks to the Agri-
Crops
The April 1 condition of winter wheat on the unusually large
acreage sown last fall indicated a crop in the seven states of
the District of about 320 million bushels as compared with 232
million bushels harvested last year and an average of 325
million bushels harvested during the years 1928 to 1932. If
this year's crop should turn out according to present indica,
tions, it would be by far the largest since the 437 million
bushel crop of 1931. Grasshoppers constitute a threat to crops
again this year unless spring rainfall is unusually heavy. Top
growth of winter wheat was smaller than usual because of
subnormal temperatures.
The April I condition of winter wheat, rye, and pastures,
reported by the Department of Agriculture:
WINTER WHEAT
RYE
PASTURES
Apr. I Apr.I 10-yr.
Apr.I Apr.I 10-yr.
Apr.I Apr.I 9-yr.
1937 1936 Aver.
1937 1936 Aver.
1937 1936 Aver.
~
per~ag~ I ~ normal) 84
Colorado·--··· 61
42
77
55
50
80
67
6o
82
Kansas ........... . 76
66
77
85
78
82
56
55
81
Missouri ......... . 75
70
79
8o
77
84
57
71
Nebraska.......• 63
68
82
64
70
87
51
70
85
New Mexico.. 75
64
75
58
71
79
Oklahoma.___ . 73
62
80
80
60
81
52
54
74
Wyoming ........ 55
61
86
61
64
87
62
81
87
United States 73.8 68.5 78.9
71.4 72.4 82.3
66.o 74.6 80.8
On
THE MONTHLY REVIEW
f March weather in the District was abnormally cold and wet,
precipitation ranging from 2 per cent above normal in Oklahoma to 69 per cent above in New Mexico. Total precipitation
for the first three months of this year was above normal in
every state in the District except Oklahoma and there the
deficiency amounted to only 3 per cent. A comparison with
rainfall for the first three months of last year is rather striking.
Moisture supplies since January 1 were 97 per cent of normal
this year as against 26 per cent last year in Oklahoma, 120
per cent as against 35 per cent in Kansas, and 127 per cent as
against 52 per cent in Missouri. However, it must be remembered that in a rather large area, extending from northeastern
Wyoming and western Nebraska southward, moisture reserves
are still inadequate because of drought conditions last summer
and fall. In much of this area and in northern Missouri, abandonment of winter grains has been heavy, not only because of
extreme drought but also because of winter killing and recent
high winds. Elsewhere in the District winter grain crops were
in fairly satisfactory condition. The outlook for irrigation water
in Colorado and Wyoming this year was, on the whole, quite
favorable.
Rainfall as reported by the United States Weather Bureau:
COLORADO
Denver..................................... .
Leadville·-·································
Pueblo·----·······························
Lamar·--···································
Garnett._··-·······························
Sunbeam·----···························
March 1937
3 Months 1937
Total
Normal
Total
Normal
- - -(In inch~
1.04
1.56
1.97
1.66
4.68
4.3o
1.37
.59
1.55
1.66
.80
.99
.71
.39
.54
.62
1.99
1.47
KANSAS
Topeka..................................... .
Iola ........................................... .
Concordia·---···························
Salina ....................................... .
Wichita. __ ................................
Hays ......................................... .
Dodge City............................. .
Elkhart·----······················
Goodland................................. .
2.05
4.35
4.55
5.39
2.72
3.o9
3.78
2.08
2.07
1.69
1.68
2.18
1.17
2.80
.43
I.II
MISSOURI
St. Joseph·---···························
Kansas City·---·······················
Joplin ....................................... .
1.23
I.73
2.39
NEBRASKA
Omaha ..................................... .
Lincoln·--·································
orfolk.- .................................. .
Grand Island._........................ .
1\1cCook................................... .
North Platte........................... .
Bridgeport............................... .
Valentine................................. .
1.60
2.38
2.43
1.53
1.37
1.27
1.20
1.32
.88
.83
.82
4.01
2 -77
3.39
2.0I
.86
1.25
5
together with high corn prices, may result in an increase in corn
acreage over that which farmers intended on March I. Very
little spring wheat had been seeded up to April 1 although
seeding usually is general by that date as far north as the
Kansas-Nebraska line. With a rise in temperatures around
the middle of April, the seeding of oats and barley, the planting
of potatoes, and the preparation of ground for corn and sorghums made further progress. The largest sugar beet acreage in
recent years is expected in Colorado, Wyoming, and Nebraska.
Live Stock
MARKETINGS: Receipts of all classes of live stock except
hogs increased in March as is usual in that month. Marketings
of calves, the only class to show an increase over a year ago,
continued in large volume, exceeding the March ten-year average by 42 per cent. Hog receipts were 15 per cent less than
in March oflast year and were less than half of normal, approaching the low level of two years ago. Light receipts resulting from
successive corn crop failures have been ac;ompanied by heavy
marketing of lightweight hogs because of high feed prices.
Cattle marketings were slightly above the March average but
marketings of sheep were 17 per cent below the average volume.
Live stock receipts at six markets in the District:
Cattle
Calves
Denver..............................
Kansas CitY·--····-···········Oklahoma City .........·--····
Omaha_··········--·················
St. Joseph----······-··········-Wichita·----·········-···-·-·····-
37,436
103,639
44,554
9 1,975
26,751
32,009
4,933
24,870
12,705
II,866
8,818
March l 937--···--············-·February 1937---··········--·
March 1936 __
Three months 1937•---·-·
Three months 1936·-·-···-·
336,364
250,173
340,895
68,908
53,02 3
935,955
196,486
163,863
1,007,362
.78
.80
.70
.80
2.06
2.74
2.22
2.00
OKLAHOMA
T u l s · - - - - -··················
McAlester_ _ _ __
Oklahoma City....................... .
Pauls Valley·---·······················
Hobart.. _ _ _ _ __
Enid ................... _ _ __
Woodward ............................... .
3.14
3.77
1.15
4.56
1.47
.99
2.10
1.58
1.6o
1.43
2.22
1.02
1.24
1.19
1.16
2.83
3.29
2.01
4.15
3.11
WYOMING
Cheyenn_____ _ _
Casper·----·---Lander......................................
Sheridan...................................
2.09
1.20
1.29
2.51
2.08
2.75
2.38
2.71
In addition to retarding growth of winter grains, alfalfa, and
pastures and damaging early peaches, the cold weather of March
also delayed spring farm work. The delayed seeding of oats,
55,6o3
Sheep
209,023
129,657
374,933
384,605
441,133
1,233,960
1,442,292
615,040
12,IIO
136,047
II8,161
10,042
529,554
643,734
1,710,177
r,697, 249
PRICES: Cattle and lamb prices advanced at the Kansas
City market in March, reflecting the scarcity of better grades
of beef cattle and a recovery in wool prices. Cattle prices reached
the highest level for March since 1930 and lambs the highest
March level since I 929. Demand for stocker and feeder cattle
increased seasonally in March but at the close of the month it
was narrow for stockers and only fair for feeders. Hog prices
fluctuated narrowly, showing only a fractional gain for the
month. While slightly lower than a year ago, hog prices were
higher than in any other March since 1930.
Comparative top prices paid for full loads of live stock at
the Kansas City market:
NEW MEXICO
Clayton·---·······························
I: Santa Fe_ _ __
~ Farmington ............................. .
5,7I6
Hogs
39,111
124,725
30,710
103,784
51,768
24,835
Beef steers __ ··-·-············--·--·-······················
Stocker cattle ___ ·······--········-··--········-···---·Feeder cattle_···---····················----·---·······-Calve.~ - - - Hogs .. ·-·----··-············-·-·--·----F ed lambs ........ --·········-···--·-·-··············----N ew crop spring lambs--· · · - - - -Sheep.. - - · - · · · · - · · · - - - - - - - -
Mar. 1937
Feb. 1937
Mar. 1936
(In dollars per hundredweight)
14.50
13.00
10.40
9.25
8.35
8.60
10.00
9.00
8.50
I0.00
Io.50
9.50
10.35
10.25
10.60
12.75
10.75
10.40
13.75
II.00
11.50
9.25
8.85
STOCKERS AND FEEDERS: Shipments of stocker and
feeder cattle and calves to the country increased seasonally
during March, cattle exceeding the March ten-year average
by 5 per cent and calves by 30 per cent. Hog shipments also
increased but fell 66 per cent short of the average, while sheep
were 44 per cent below the average volume. The countryward
movement of all classes of live stock was somewhat larger than
in March of last year.
6
111
THE MoMTHLY REVIEW
Stocker and feeder live stock shipments from four markets
the District:
Denver ..............................
Kansas CitY·---···············
Omaha........ ·-···················
St. Joseph.----·················
March 1937......................
February 1937·-- ·············
March 1936......................
Three months 1937. ___ ..
Three months 1936·-- ·····
Cattle
Calves
Hogs
7, 1 77
1,171
38,620
12,748
3,703
5,330
2,087
72 7
434
1,6o8
75°
1,007
62,248
36,350
61,706
168,737
171,198
9,3 1 5
4,969
6,800
25,048
17,985
3,799
1,983
3,336
8,941
II,409
Sheep
7,400
7, 2 44
10,856
6,928
32,428
40,382
27,163
130,623
104,251
According to the Bureau of Agricultural Economics; the
number of cattle on feed in the Corn Belt on April I was about
33 per cent smaller than a year ago. Reductions were largest
in western Corn Belt states, where the effects of the 1936
drought were most serious, the decrease amounting to 45 per
cent in Missouri, 55 per cent in Nebraska, and 30 per cent in
Kansas. Sharp advances in prices of feed grains and concentrate feeds have tended to speed up the marketing of cattle.
In view of this and the present intention of feeders to market
a larger proportion than usual of their cattle in April, May,
and June, the indicated supply of fed cattle for market after
July I is relatively much smaller than the supply during the
first half of the year.
There were 380,000 lambs left in feed lots of the important
Northern Colorado, Arkansas Valley, and Scottsbluff feeding
areas on April 3 compared with 420,000 a year ago and 480,000
two years ago. Since January I, shipments from these areas
totaled 4,008 cars of lambs compared with 5,324 cars in the
same period last year and 4,465 cars two years ago.
RANGES AND PASTURES: Range and feed supplies on
April I were very short over northeastern Wyoming, parts of
western Nebraska and Kansas, western Oklahoma, southeastern
Colorado, and northeastern New Mexico. Much of this area
was still short of moisture although spring range prospects
were improved by precipitation in March.
Cattle and sheep
on ranges have wintered well in sections with ample feed but
are thin in the 1936 drought areas, where calf crop prospects
are only fair.
Except in Colorado, Kansas, and Oklahoma, the condition
of both ranges and pastures was markedly lower than a year
ago, and in all states in the District the condition was generally
substantially below normal. This low condition is due principally to drought last year and the retarding effect of cold
weather late in March. The delayed development of pastures
will accentuate the abnormally short feed situation in those
areas where pastures were expected to furnish considerable
early feed. Native grass not being available, considerable
grazing of winter wheat in Oklahoma, Kansas, and Missouri
continued into April despite possible injury which would affect
grain yields. Many farmers were reported to have set aside a
definite acreage of their wheat for pasture, not attempting to
harvest it for grain.
As a prelude to the spring movement of cattle from the
southwest, pasture leasing has been active in the Osage section
of Oklahoma and the Blue Stem section of Kansas. About
70 per cent of the Blue Stem pastures were leased by April I
as compared with 72 per cent a year ago, while about 87 per
cent of the Osage pastures had been leased as compared with
only 65 per cent at that time last year. Lease prices, ranging
from 50 to 60 cents per head higher than last year in the Blue
Stem area and about 25 cents per head higher in the Osage
country, are the highest since 1931. Acreage guarantees are
the largest in fourteen years of record, reflecting thin and weedy
grass as a result of droughts and heavy grazing in recent years.
The condition of pastures in these areas, while below average,
is much better than in these states as a whole. Moisture
supplies are favorable, but cold weather has delayed pasture
feed and in-shipments of cattle were expected to be later than
usual. Pastures were expected to be well stocked, mostly by
in-shipments as fewer cattle have been wintered than a year
ago and local pasture owners are leasing instead of putting in
cattle. It was estimated by the Department of Agriculture that
the spring movement from the southwest, about a third of
which goes onto Oklahoma and Kansas grass, would be 10
per cent larger than last spring and about the same as in the
spring of 1935, when 861,000 head of cattle were shipped from
Texas, New Mexico, and Arizona between March I and June 30.
Meat Packing
Operations at meat packing plants, as reflected by packers'
purchases at the six principal live stock markets in the District,
increased seasonally during March. Cattle slaughter, while
slightly smaller than a year ago, was 4 per cent above the March
ten-year average and calf slaughter, which increased 19 per
cent as compared with March of last year, exceeded the average
by 41 per cent. Although not as low as two years ago, hog
slaughter was about 9 per cent less than in March of last year
and fell 45 per cent below the ten-year average volume. Sheep
slaughter was 8 per cent larger than in March of last year but
about 3 per cent below the average.
Packers' purchases of live stock at six markets in the District:
Cattle
17,95 2
51,448
23,420
64,090
19,962
11,822
Calves
Denver..............................
Kansas City
Oklahoma City ................
Omaha ......
St. Joseph·-- --·················
Wichita. ___·······················
3,7°4
18,948
6,129
9,494
7,809
5,961
Hogs
33,640
113,839
23,980
86,950
48,663
23,086
37,069
IIo,755
10,637
108,714
104,66o
10,821
March 1937.. _ _ __
February 1937·-·······-·•····
March 1936......................
Three months 1937•-·······
Three months 1936·---···
188,694
16o,628
191,284
548,001
597,008
52,045
44,551
43,765
155,365
138,655
330,158
337,256
360,787
1,083,u7
1,1 85,6o7
312,201
353,547
1,043,039
995,861
Sheep
Cold Stor age Holdings
With the exception of butter, United States cold storage
holdings continued at a rather high level during March despite
sharply greater than seasonal declines in stocks of beef, lamb,
and poultry. Heavy withdrawals of butter reduced stocks of
that commodity on April I to a level about 24 per cent below
the average for that date during the past five years. Stocks
of pork showed less than the usual seasonal decrease while
stocks of lard increased at a substantially higher than seasonal
rate. Cased eggs moved into storage at about the normal rate
for this time of the year but frozen eggs showed a comparatively
large increase for the month.
United States cold storage holdings, reported by the Bureau
of Agricultural Economics:
Apr. I
1937
Beef, lbs...........................................
Pork, lbs ................... _ _ _ _
Lamb and mutton, lbs...................
Poultry, lbs.·--·································
Miscellaneous meats, lbs...............
Lard, lbs ... _ _ ___ _ __
Eggs, case_,______ __ _
Eggs, frozen (case equivalent)......
Butter, creamery, lbs ... _................
Cheese, all varieties, lbs.................
Mar. I
Apr. I
Apr. 1
1937
1936 5-Yr.Av.
(In thousands of units)_ __
142,685
167,438
79,509
62,806
756,095
775,688
450,149
627,430
7,176
9,807
2,334
2,123
I 20,420
157,858
69,494
73,869
u6,679
126,233
66,604
61,695
217,569
202,476
76,814
104,566
1,406
322
807
1,2II
1,519
983
1,310
1,361
6,741
20,678
5,346
8,877
85,223
93,u4
73,952
60,356
Flour Milling
Operations at southwestern flour mills were stepped up from
66.5 per cent of capacity in February to 68.6 per cent in March
7
THE MONTHLY REVIEW
although usually there is a decline in act1v1ty. This increase
reflected not only a steady flow of shipping directions on old
contracts and an increase in flour sales in the latter part of the
month but also an unusually heavy eastern demand for millfeeds. Output of flour in March was 16 per cent greater than
in the shorter month of February and was 26 per cent greater
than in March of last year, when operations averaged only
56.3 per cent of capacity . Production for the first three months
of 1937 was nearly 12 per cent ahead of that for the first three
months of 1936.
Mar. 1g37
n8,ooo
643,000
192,000
211,000
1,038,000
Atchison_··································-····
~,'~~::s. Ci tY--·-•-·-·•··-··--··------·-···--\\'i chi ta·----·-··-····························0 t her cities ....... ·-················-··-·····
Change from
Feb. 1937
Mar. 1936
(In barrels)
+n,ooo
+124,000
+27,000
+45, 000
+98,000
+20,000
+151,000
+52,000
+ 82,000
+150,000
T ot: t L . · - - --·-·····-······-·····
2,202,000
+305,000
+455,000
*United States· - - - · · · - - - 5,410,000
+566,000
+3,000
-Represents about 60 per cent of the total output in the United States.
Notwithstanding several large round lot orders and numerous moderate sized bookings in the latter part of March, flour
sales in the southwest were generally considered slow. Reselling by jobbers and bakers at a discount affected sales to
some extent. As the wheat market rose, flour prices advanced
but the advance was held down by the sharp increase in millfeed prices which reached an eight-year peak at the Kansas
City market. In addition to the heavy demand from eastern
areas normally served by Minnesota and Buffalo mills, delayed pastures and wintry weather toward the close of March
necessitated liberal dry feeding in local areas.
Petroleum
Daily average output of crude petroleum in the District
continued to increase in March and gross production gained
about 12 per cent in comparison with the shorter month of
February. Output in March and the first three months of this
year was around 20 per cent ahead of a year ago, March production exceeding the average for that month during the past
ten years by 27 per cent.
Crude oil producti :..m, estimated from American Petroleum
Institute data for March and officially reported by the Bureau
of Mines for comparative months:
MARCH 1937
MARCH 1936
FEBRUARY 1937
Gross D. Av.
Gross D.Av.
Gross D . Av.
--(In th~ds~els)
Colorado. __ ··-···-··-·····
Kansas·--····---······--···New Mexico..·--··--·-Oklahoma·---··········\Vyoming.... ·-·····-······
140
5,789
1,169
19,461
1,608
Five states·-·············- 30,167
United States·----··· 105,248
4·5
186.7
102.2
627.8
51.9
973.1
3,395.1
120
5,282
2,767
17,406
1,392
4.3
188.7
98.8
621.7
49.7
26,967
963.2
93,173 3,327.6
135
4,815
2,148
16,989
1,200
Zinc and Lead
Zinc and lead shipments increased further in March. Demand
for ore was less strong in the latter half of the month, but purchasers generally took all supplies available. Output at mines
and tailing mills also increased, reaching the highest level since
April of last year for zinc and since May, 1930, for lead. At
the close of March, there were 71 mills in operation, the largest
number in about seven years and twice the number operating
in recent depression years.
Zinc and lead shipments from the Tri-State district, estimated
from weekly reports of the Joplin News Herald:
ZINC ORE
Tons
V a lue
LEAD ORE
Tons
Value
27,708
1, 641,335
1 49,5°7
1,238,285
2,310
480
4,922
45,484
43,837
42,207
122,789
II 1,314
'$2,029,127
1,734,619
1,350,080
4,921,842
3,56r ,4-93
7,712
5,398
4,969
16,251
14,204
Kansas·-·-·····················-····
Missouri ..·-···············-········
Oklahoma·---··················-
14,426
March 1937--···-·-··············
February 1937·-······-···-····
March l 936·-··•-·-·•···-·--····Three months 1937•---···Three months 1936·--·····
3,350
1, ~ 6
40,685
417,II9
.,, 650,980
407,438
248,500
1,276,009
689,029
Zinc concentrates advanced i5.oo per ton at the Joplin
market during March, closing at i49. 50, the highest price since
September, 1926, and $17.50 per ton higher than a year ago.
Lead ore prices, after reaching $95.00, the highest price since
April, 1929, dropped back to $84.00 as a result of declines in
pig lead prices in London. This price was $1 .oo per ton lower
than at the close of February but was $34.00 per ton higher
than at the close of M arch last year. Early in April zinc declined $2.00 per ton and lead an additional $14.00 per ton.
Coal
Output of bituminous coal in the District, at the highest
March level since 1927, was more than half again as large as a
year ago. Production for the first three months of this year
totaled better than 8 million tons as compared with slightly
less than 7 million tons in the first quarter of 1936.
Bituminous coal production, estimated from reports of the
Bureau of Mines:
Mar. 1937
Change from
Mar. 1936
Feb. 1937
(In tons)
-101,000
Colorado.--···· ·······························
Kansas and Missouri ... •·····-········
New Mexico..·--··············-·······-···Oklahoma____··-···-··-····-················
Wyoming ........ ·-···········-················
720,000
852,000
190,000
130,000
566,000
-61,000
-78,000
Six states·-·-·····-·······················- ···U ni ted States .. ·-·············-···-····-·--
2,458,000
50,720,000
-175,000
+8,610,000
+65,000
+230,000
+324,000
+80,000
+47,000
+151,000
4.4
1 55·3
69.3
548.1
38.7
25,287
815.8
90,568 2,921.5
Stocks of crude petroleum increased from 114 million barrels
to around 120 million barrels in the "other" Mid-Continent
area of Oklahoma and Kansas between February 27 and April
3 but showed little change at a level slightly below 26 million
barrels in the Rocky Mountain area. This increase was largely
offset by declines in fuel oil and gas oil stocks but it was thought
that the high level of producing and refining operations was
preventing further strengthening of the crude price structure.
By early April, demand had begun to improve for gasoline,
stocks of which are unusually large as a result of the increase
in refinery operations to meet the heavy demand for fuel oils
in recent months. Prices of kerosene and tractor fuels were
stronger.
+832,000
+19,193,000
Employment and Pay Rolls
Preliminary figures of the Department of Labor showed a
gain in employment in all states of the District from the middle
of February to the middle of March. In four states there was
an increase in aggregate weekly pay rolls, while in three states
there was a decrease.
Employment and pay rolls, by states:
March 1937
per cent change from
February 1937
E mpl oym ent
P~ R olls
Colorado.--···································-·--·-·····-······--········
I(ansas.· --·····························································- ····
l\1issow·i ...-············································-·-- ···········-···N ebraska.. ·-····························-············-··-· ....... ······-·
New Mexico.............. ···-······-······-·····-··-····-················
Oklahoma.......... ·-·····-···············-·· ····················-·········
Wyon1ing·-·······-·--···-····-·· ·········-·-·-·······-·····-·············-
+1.6
+0.9
+ 2.6
+2.0
+1.2
+2.5
+0.7
-0.7
+3.7
+5.6
+4.0
-o.8
+4.7
- 4.5
8
THE MONTHLY REVIEW
NATIONAL SUMMARY OF BUSINESS CONDITIONS
By the Board of Governors of the Federal Reserve System
INDUSTRIAL PRODUCTION
PERCENT
PERCENT
140
140
130
130
I\.
120
\
~
1"'\
110
100
90
r
/~
A
80
\ ~
70
120
)v
110
100
I\ 1' ·v
I \ 'V
\~
90
80
70
\ r,J
60
60
V
50
50
1929
1930
1931
1932
1933
1934
1935
1936
1937
Index of fhysical volume of production, adjusted
for seasona variation, 1923-1925 average= JOO. By
months, January 1929 through March 1937.
FACTORY EMPLOYMENT AND PAYROLLS
PER CE HT
PEA CENT
-
120
110
120
.
,.._
"" "\
100
90
80
Employment
\/'\\.
70
\
60
110
100
/if
Q
v
Po~rolls _;, '\
, 50
\/\
40
90
/'V .r.!'I
I'' - t l
.J I....'v..~ , '•
! •.:
I\
A.
80
70
60
50
I
I
40
w
30
30
1929
1930
1931
1932
1933
1934
1935
1936
In March industrial activity continued to increase and pay rolls at factories
and mines showed a substantial rise. Prices of basic commodities after advancing rapidly in March declined in the first half of April.
1937
Indexes of number employed and pay rolls, without adjustment for seasonal variation, 1923-1925
average= 100. By months, January 1929 through
March 1937. Indexes compiled by the United States
Bureau of Labor Statistics.
PRODUCTION AND EMPLOYMENT
Industrial production increased from Februa ry to March and the Board's
seasonally adjusted index advanced from 116 per cent of the 1923-1925 average
to I 18 per cent. The rise reflected a sharp increase in output of minerals, chiefly
coal, and an increase of somewhat more than the usual seasonal amount in manufacturing. The larger output of coal in March was due in part to stocking by
consumers in anticipation of a possible strike at bituminous coal mines on April
1 when the agreement between mine operators and the miners' union expired.
A new agreement was reached on April 2 but, owing partly to the previous accumulation of stocks, production in the first ten days of April showed a sharp decline.
During March activity at steel mills increased seasonally and in the first three
weeks of April was over 90 per cent of capacity. In the automobile industry output showed about the usual seasonal increase in March and the first three weeks
of April, considerable fluctuations during this period being largely in response to
developments in the labor situation. Lumber production expanded considerably
in March, and there was a sharp rise in output of nonferrous metals. Cotton consumption, which has been at an unusually high level in recent months, increased
further in March and in actual amount was larger than in any previous month .
Production at woolen. mills and shoe factories continued in large volume.
Value of construction contracts awarded in March, as reported by the F. W.
Dodge Corporation, was at about the same level as in February and substantially
higher than a year ago. Privately-financed work increased, while the amount
of publicly-financed work continued to decline. The increase in privately-financed
projects reflected a larger volume of residential building and of factory and commercial construction.
Employment and pay rolls increased by considerably more than the usual
seasonal amount between the middle of February and the middle of March. The
expansion in pay rolls was larger than in employment, reflecting in part a further
rise in wage rates. In manufacturing, the principal increases in employment were
in industries producing durable goods, particularly steel, machinery, and lumber.
The number employed in the production of nondurable manufactures showed
slightly more than the usual seasonal rise.
DISTRIBUTION
WHOLESALE PRICES
PER CE rlT
11 0
. - - - . . - - - ~ - - ~ - - ~ - - ~ - - - - =F'ER-·CENT
110
100
/----+---+---+---+---+-- - -I
100
90
Distribution of commodities to consumers showed about the usual seasonal
increase from February to March. Mail-order sales expanded considerably but the
rise in department store sales was less than seasonal, considering the early date of
Easter this year.
80
COMMODITY PRICES
70
Prices of nonferrous metals, steel scrap, rubber, cotton, and wheat, which had
advanced rapidly in March, declined considerably in the first half of April. Since
the middle of March prices of coke, tin plate, and rayon have advanced and there
have been smaller increases in a wide variety of other industrial products. Dairy
products have declined, reflecting in part seasonal developments.
60
50
40
30
1932
1933
1934
1935
1936
1937
BANK CREDIT
Indexes compiled by the United States Bureau of
Labor Statistics, 1926= JOO. By weeks, 1932 to date.
Latest figure is for week__ending~April 17, 1937.
MEMBER BANK CREDIT
BILLIONS OF t)OLLAAS
17
16
15
14
13
12
II
BILLIONS
I
_ Demand
-
o.1pcs;t,.
AdJuste :I
~
./
"'"\..
Total Loons
- o nd lnvestmet•;
....t T •
I
I
/',,.
I
'-:;
_
~
Obligations
- - {Dir«1.1::::rr
~~
.-
-~
~
_.,
21
f'-.\..
J ..,.,-...r~
.;
I
Qtt,rSecuffies
19 36
23
22
Tolol Loons
11
10
I
0epogi11
~
1935
\I'\.
20
d~s.Govt
I
I
'34
24
~
1
Balonccis of
Bank.sin U. S.
u.sGov'I
DOLLARS
,_,,.,.
1
~
~
I
In the four-week period from March 24 to April 21 excess reserves of member
banks increased from $1,270,000,000 to $1,590,000,000, reflecting principally disbursements by the Treasury from balances with Federal Reserve banks and purchases of U. S. Government obligations by the Federal Reserve System. The
bulk of the increase in excess reserves was at banks in New York City and Chicago.
Total loans and investments of reporting member banks, which had declined
sharply in March, reflecting sales of U. S. · Government obligations, showed little
change in the two weeks ending April 14. Loans to brokers and dealers in securi-ties declined from the middle of March to the middle of April, while other loans,
which include loans for commercial, industrial, and agricultural purposes, showed
a substantial increase. These loans have increased almost continuously over the
past year.
Demand deposits, after declining in March, increased somewhat in the first
half of April, and there was an increase in foreign bank balances, reflecting an inward movement of short-term funds from abroad .
"'1937
MONEY RATES
'34
1935
1936
Wednesday figures for reporting m ember banks in
101 leading cities. September 5, 1934, through April
-, 14,~1937.
The rate on prime commercial paper advanced from ¾ per cent to 1 per cent
in the latter part of March. Bond yields, which had advanced sharply in March,
showed no pronounced change in the first three weeks of April.
@FedFRASER