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(If copy of this bulletin is recelved in advance, It should be understood that it is in tonded as a spec la! courtesy to those who have Jdndly assisted In its preparation, and that Its contents are confidential.) This Copy Shall Not Be Released for Publication Before June 2nd, 191 7 FEDERAL RESERVE BANK OF KANSAS CITY CHAS. M. SAWYER CHAIRMAN BOARD OF DIRECTORS AND FEDERAL RESERVE AGENT Report oE Conditions in DISTRICT NO. 10 for the June Issue of the Federal Reserve Bulletin. May 21st, 1917. AGRICULTIJRE The labors of the various state committees for the conservation of agricultural products are meeting with enthusiastic response from all quarters. Publicity bureaus in charge of experts are reaching all classes through the press and by uircct propaganda. The past month has been abnormally cold and wet, retarding farm work, hut some improveinent in growing crops is noted. Brief reviews from various states wholly or partly within this District follo,v: COLORADO-The winter wheat is generally good and recent moisture has benefited all crops. A materially increased acreage is being cultivated. Sugar beet planting is well under way and conditions are favorable. KANSAS-April rainfall was almost as much as during the five previous months combined, causing a general improvement in all crops. State and Government estimates on this year's wheat production agree upon approximately 40,000,000 bushels. The highest estimate received is 60,000,000 as against last year's final estimate of 97,500,000. Suruhine and warmth are the greatest needs at the present time. Alfalfa is looking fine in the eastern ha1f of the state and getting started in the western. Authorities claim that there is a good supply of seed for this season. The gardening area is said to hu,ve bcc11 uoubled. MISSOURI-'l'he aban<loncu ·wheat acreage will probably amount to between 15 and 20 -per cent, while indications a1·e that t.he corn acreage being planted is 40 per cent above the average, being approximately 7,368,000, an area greater tlum the whole of Belgium. The wheat forecast on May 1st exceedcc1 last year's final estimate by approximately 3,000,000 bushels. NBBRASKA-Winter wheat has improv1!<l. Reliable estimates arc that not to exceed 50 per cent has been killed, whereas earlier estimates ran as high as 75 per cent. _In many localities tractors are being operated twenty-four hours a day by two or three shifts. The acreage of spring crops has been increased from 15 to 20 per cent over all past seasons. NE"W .IWEXICO-Comrnissioner of Public Larnls has granted a permit to ever:ir holder of a lease of state lands for grazing purposes to nse such land:,; for general farming without i11crease in rental during the pcriod of the ,rnr, covering roughly the right to farm 7,000,000 acres of land, a large portion of which is adapted to some form of cultivation. Liberal permits have also hcen granted for the farming of tracts in the United States timber reserves. !' 'I OKLATIOMA-Only 15 per cent of the wheat acreage has been abandoned, and there has been material improvement in the crop remaining to be harvested, the growing condition of which, on May l11t, was 71 per cent or seven poiuts lower than at the same time last year. Indications are, however, that Oklahoma will produce 31,800,000 bushels of wheat this year as against 29,58:"i,000 last yeal'. WYOMING-The supply of snow l'emaining in the mountains at the clo,;c of April was unusually large, the depth averaging 42.6 inch~s or 75 per cent greater than a year ago, assuring an abundant flow of irrigation water if weather cornlitions for early summer are normal. There is an improved prospect in winter wheat, and it is now estimated that only 10 or 15 per cent of the crop will be plowed up. LIVE STOCK 'fhe general trend of the price.i for all classes has been upward, the highest level ever known prevailing. 'l'hc movewent to the markets increased materially and will unquestionably be reflected in snrnller receipts later in the season. Unseasonable weather has caused a severe lamb loss in Wyoming, while many of those surviving are in poor condition. Wool ln·ought the highest price ever paid, from 45c to 50c a pound. 'l'he-r:e has been noticeable betterment in grazing conditions. Local supplies of cut meat.i on May 1st showed a decrease from 50,000,000 pounds on .!Hay 1st, 1D16, to 46,500,000 pounds. Practically every packing center shows a decrease in hog· packing for the past two months as compared with the same period last year. MINING Colorado mines producing base metals made a record pro(luction during the month of April, gold ' and tungsten showing some falling off owing to the inc1·easi11g cost of production. Tn the i\IissouriKansas-Oklahorna field operators arc claiming that unless materially advanced prices occur :won, thr.re will be many _shut-downs because of the increasing prices of everything that enters into production. However, if the remaining eig-ht months prove as productive as the first four, all record~ will be broken in the production and valuation of zinc, lead and calamiue ores in this field for the current year. OIL Contrary to preclictions the price of crude oil in the Mid-Continent field remains unchanged, while the shortage of casing and scarcity of rigs has reached an acute stage, causiug a number of shut-downs. Both Kansas amt Oklahoma reported iuel'cases in completed wells in April over March, but a net loss in new production. Rapid development in ·wyoming continues. LUMBER AND CONSTRUCTION Lumbermen arc predicting a shortage for the rett1il trade due to the great demand 0£ the Government for building material for ships and army barracks, but some insist that there is plenty of lumher at producing points and that the supply will eontinuc adequate regardless of tlrn Government's requirements, the real problem being the question of transportatiou. There is a healthy ancl insistent demand for yard stock for general building purposes. Many large firms have withdrawn from the market becausf' they cannot furnish the stock. Order files arc the I argest ever known and until most of these book orders are filled, but litthi new business can be handled. Local sash and door factories are running full force, but orders are not quite so heavy as the.y were thirty <lays ago. Seven of the twelve import'lllt cities reporting show slight decreases in valuation of building- permits for April as compRrcd with the same month last year. However, the six cities showing increases, in some cases important, comprise the largest cities in the District. Unquestionably general building operations arc not so active, due to the scarcity of material. LABOR In spite of the fact that the past month has witnessed an unusual number of voluntary wage increases arnl bonuses in various lines of industry, there have been increasing demands on the part of labor by reason of the increasing cost o.£ necessities, with a number of strikes and rumors of additional 011es. 'l'he disturbances reported, however, a1·e sca.tterod and do not affect any considerable number of men in any instance. The shortage of labor is becoming more and more apparent and the farm labor problem particularly is receiving much attention. Tt is estimated that 20,000 harvest hands will soon be needed for Kausas and Oklahoma. WHOLESALE AND RETAIL Flour mills arc in active operation and current ;;hiprnei1ts oJ' products in April were far above normal for the sen.son, the activity being clue to excessive buying of flour by housewives, which has now fallen off to some extent by reason of high prices :m!l the fact that millers are discouraging new buying as much as possible. Local distributors of automobiles report that from many quarters dealers have been taking more cars than called for by their contracts, iu spite of diminished crop prospects and the fact that practically all cars represented in this territory have raised their prices, some of them two or three times in the past year. 'I'he wide-spread propaganda of economy has undoubtedly had its effect upon dealers in dry goods, while unseasonable weather ha:,; had a further depressing tendency. Wholesalers report a good increase in orders for fall delivery. 'J'he well organized movement to increase the cultivated area, together with the abandonment of consiclerable wheat 1tcreage, has resulted in the greatest demand for corn tillage tools ever experienced with a (focidcd short;igc quite apparnnt. Many honses report having shipped out as much or more of i;.econd ordet' goocls ,l.'l they did upon the original coutracts. General April purchasing activities are report<id as practically stationary with April of last year with a slight decrease from 1.Iarch of this year, while collections continue satisfactory. FINANCIAL While reports indicate a most satisfactory increase in the gross earnings of railways, the effect of rising expenses is revealed in decreases in net earnings in several instances. Well maintained busincs;; acti.vitiy is reflected hy the largest total clearings ever recorded for April, ·with gains of from rn.2 to 178.6 per cent, the average for the fifteen most important centers being 50.2 per cent, the greate.;t gains occurring in Oklal1oma. Post office receipts are reported in satisfactory volume. Bank deposits show a healthy gain over the same period a year ago, while the larger city banks show something of a decrease in deposits and an increase in loans since .March 5th, as is usual in the spring of the year. Dcsi1•al.Jle loans contillUP in demand throughout the District, but there is cvidc11ce of a st1ffoni11g in discount rates. GENERAL The claim of a shortage of food stuffs and the efforts put forth to induce economy are said by many to have ht:cn carried to extremes and critics of this policy, believing that legitimate business has been unfavornbly affected, are urging the use of the British slogan, "Business As Usual." There has been no discernible abatement in the volnme of general busincsH, as indicated by bank clearings and other busine:,s baro1Heters, and the attitude of commercial interests is by no means one of apprehension. Government purchases in various dii'octions aro adding materially to the uormal consumption. As soon as the Govermnent's plans are fully outlined, any uncertainty which now exists will give way to the generous co-operative efforts of the business interests in all lines. ' Statement of Condition of FEDERAL RESERVE BANK OF KANSAS CITY At Close of Buaineu, May 18, 191 7. RESOURCES Gold Coin and Certificates .............................. .. .. $ 8,122,367.50 Credit balances in Gold Settlement Fuud ................ .. .. 22,233,000.00 Legal 'l'ender Notes, Silver Certificates and Subsidiary Coin. . ... 14,687.00 Total Cash ..................... . .. .... .. ... . ... .. . .... $30,370,054.50 Commercial Paper (re-discounts) ..... ......... . ......... .... $ 802,559.77 Member Banks' Collateral Notes............ ......... .. .. .... 645,000.00 Acceptances. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,912,685.82 U. S. Bonds with Circulation Privilege...... ....... . ..... .... 8,003,090.00 Other U. S. Bonds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 888.fi00.00 U. S. Gold Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,784,000.00 U. S. Certificates of Indebtedness.......... ........ . . . .. .... 2,510,000.00 Municipal Warrants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 430,935.77 Due from other Federal Reserve Banks-net. . . . . . . . . . . . . . . . . . 3,645,376.41 All other Resources....................... ........ . ..... ... 459,042.61 Federal Reserve N otef! ........ , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .... . .. . . . Total Resources .......... . . .. . .... . . ... ... ... ......... $52,401,244.88 LIABILITIES Capital paid in . ...... . .. . ... .... .... . . .... .. . ........... . .. $ 3,079,100.00 Reservo Deposits-net .......... .... .. .......... . . . ........ 45,944,901.05 Federal Reserve Notes-net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 777,635.00 Federal Reserve Bank Notes-net . . . . . . . . . . . . . . . . . . . . . . . . . . . ......... . Government Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,599,608.83 Total Liabilities .. ... . .... . .......... . .......... . . . .... $52,401,244.88 MEMORANDUM F. R. Notes issued to the Bank .... .. .. ... . ..... . . . ....... .. $25,268,135.00 F. R. Notes in hands of Bank........ .. . .... . ............. .. 352,365.00 F. R. Notes Outstanding.......... .......... . ........... ... 24,915,770.00 Gold and Lawful Money with Agent. . . . . . . . . . . . . . . . . . . . . . . . . 24,138,135.00 Net Liability F. R. Notes Issued.... .. . . . ......... . .... .. . . .. 777,635.00 CLEARINGS Total Clearing fo:r week ...... . ..... . . .... .. ..... . ........ .. $56,990,210.86 Total Number of items handled .. . . .. .. .... . . . ...... . .... . . . 77,388
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