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a------------------------------------------a THE MONTHLY REVIEW Covering Conditions in the Tenth Federal Reserve District FEDERAL RESERVE BANK OF KANSAS CITY For the Information of Memher Banks and Business Interests of this District C. K. BOARDMAN, Assistant Federal Reserve Agent and s,~retory ASA E. RAMSAY, Chairman Board Directors and Federal R,serve Agent a---------------------·-----------------------a VOL. 6 No. 5 THE Kansas City, Mo., May 23, 1921 •,•-110-1111-1111-1111-1111-1111-\:al' THIS COPY RELEASED.FOR PUBLICATION IN MORNING PAPERS MAY 27 steady reduction of loans and discounts THE SITUATION AT A GLANCE. by the Federal Reserve Bank and by member banks which started a year ago continues 1 ■ 1f Outstanding ·features of conditions in the with the result that business in this district =, Tenth Federal Reserve District reflected by =, is now proceeding on less borrowed capital. The the May issue of th e Mon thly Review are: combined statements of eighty-two selected member ,r Further strengthening of th e position of th e banks widely scattered over the district show a total =, Federal Reserve Bank and Member Banks, and =, of $528,502,000 of loans and discounts and investments continued reduction of loans. at the close of business on May 4. This total com- 1f Improvement, though slight in some instances_, _ pares with $546,369,000 as the combined total of these ; in practically all basic i ndu stries. banks at the close of business April 8, 1921. It also· ,r Volume of mercanti"le trade in excess of sales of -, compares with $640,620,000 as the total at the close 1919, 191 8 and 1917, and prices becoming of business April 2, 1920, which was the high peak of more stabi"lized. loans and discounts and investments for the member =, 1f Growth of crops and farm operations retard- =, banks reporting. These figures indicate a decrease of ed by prolonged cool weather. Deterioration $l7,867,000 in the four weeks' period and of $112,118,of wheat resulting from winter freeze, low 000 in the thirteen months since loans started on their temperatures and heavy rains, but Government reports show May 1 condition 4.3% =, downward course. above May 1 condition last year. Demand deposits on which the reserve of these • ,r Wheat receipts at markets 136% above re• eighty-two member banks is computed has kept fairly + ceipts a year ago, and considerable foreign + good pace with the declines in loans and discounts ■ buying. and investments. The total of demand deposits as of ,r Improved activity in flour mi"lling. -, May 4, 1921, was $374,876,000 which was $5,995,000 ,r Supply of cattle and hogs at markets slightly =- less than the total four weeks previous to that date less and sheep 10% more than one year ago. and $81 ,865,000 less than the total of April 2, 1920. =, ,r Meat packing improved by resumption of for- _-_! Time deposits, however, have gained steadily. The eign buying and broadening of market abroad. total as of May 4, 1921, was $104,560,000 a gain of ,r Large buying of hides indicating improve$3,952,000 in four weeks and $6,885,000 more than on -5 ment in the shoe industry. April 2, 1920. . -, ,r Crude oil production increased in spite of ef- _! The statement of the condition of the Federal Reforts to curtail the output by holding down serve Bank of Kansas City as of May 18, which is development operations. printed elsewhere in this issue of the Monthly Review, =, ~ Slightly increased activity in zinc and lead -, reflects further decreases of loans and discounts and mining; increased ore prices. a like decrease of deposits, together with a strengthen,r Curtailed production at Colorado metal mines, - ing of its reserve position. The ratio of total reserves causing a slowing down of operation at smel-t• to net deposit and note liabilities combined on that ers, but more activity in mines where gold and date was 50.8% , which compares with a ratio of 43.6% silver predominate. as of April 15, and 41 % as of May 14, 1920. ,r Improvement in coal mining operations check- Further evidence of a materially strengthened £ied by lack of market demand. -, nancial condition in this district is shown by the readi,r Sl ugtar beet acreage contracted 3.4% less than __. ness of private capital to invest in U. S. Certificates a.s year. of Indebtedness issued by the Treasury Department. ,r Increased activity in building: perrnits 22% =, On April 15 an offering was made of an issue, maturlarger but estimated cost of construction 33% ing October 15, 1921, bearing interest at the rate of below the corresponding month last year: _ 5¼%, with a quota for this district of $6,000,000, ff-1111-m1-u11-u11-m1-11n-ii which was oversubscribed to the extent of $2,500,000. = = = = = I = = = I = I = = = = 1 = = -! i = = 1 (Compiled May 20, 1921) 2 THE MONTHLY REVIEW Again, on May 15, an issue was offered maturing February 16, 1922, and bearing 5¼% interest, with a quota of $8,000,000 fixed for this district. This issue also has been largely oversubscribed, principally by private investors through Member Banks, the subscriptions amounting to over $10,500,000. Bank clearings at thirty-one cities in this district for April aggregated $1,238,127,556, which was 12.8% below the total clearings at the same cities in March and 33.5 % less than in April, 1920, for twenty-eight cities reporting for the month in both years. The clearings of all cities reporting from January 1 to May I aggregated $5,240,395,703, or 32.1 % less than the total for the first four months in 1920. All cities BANK CLEARINGS 31 CITIES, 1921 April, 1921 Pct. Decrease Kansas City, Mo. . ........... $ 631,512,458 36.6 Omaha, Neb. . . . . . . . . . . . . . . . . 157,688,958 45.7 Denver, Colo. . . . . . . . . . . . . . . • • 116,904,169 23.6 Oklahoma City, Okla. . . . . . . . . 96,781,718 +62.6 Wichita, Kans. . . . . . . . . . . . . . • 46,115,365 24. 7 St. Joseph, Mo. . . . . . . . . . . . . . . 40,304,189 44.2 Tulsa, Okla. • . . . . . . . . . . . . . . . . 35,696,748 40.7 Lincoln, Neb. . . . . . ... . . . . . . . . . 16,148,907 38.4 Kansas City, Kans. . . . . . . . . . . . 15,607,355 31.1 Muskogee, Okla. . . . . . . . . . . . . . 12,597,451 32.4 Topeka, Kans. . . . . . . . . . . . . . . . 11,974,713 17.6 Hutchinson, Kans. . . . . . . . . . . • 8,142,136 37.0 Cheyenne, Wyo. . . . . . . . . . . . . . 5,824,327 11.15 Grand Island, Neb. . . . . . . . . . . . 4,995,504 Joplin, Mo. . . • . . . . . . . . . . . . . . . 4,382,000 51.4 Okmulgee, Okla. . . . . . . . . . . . . . 4,225,179 34.9 Pueblo, Colo. . . . . . . . . . . . . . . . . 3,735,995 9.1 Colorado Springs,. Colo. . . . . . . . 3,727,173 31.4 Independence, Kans. . . . . . . . . . . 2,835,358 Hastings, Neb. . . . . . . . . . . . . . . . 2,798,496 37.4 Fremont, Neb. . . . . . . . . . . . . . . 2,306,410 37.2 Atchison, Kans. . . . . . . . . . . . . . 2,225,762 42.3 Pittsburg, Kans. . . . . . . . . . . . . . 2,181,991 15.4 McAlester, Okla..... :. . . . . . . . 1,743,031 47.9 Guthrie, Okla. . . . . . . . . . . . . . . . 1,506,084 50.6 Lawrence, Kans. . . . . . . . . . . . . 1,455,170 28.6 Parsons, Kans. . . . . . . . . . . . . . . 1,425,192 26.1 Lawton, Okla. . . . . . . . . . . . . . . . 1,304,093 25.1 Miami, Okla. . . . . . . . . . . . . . . . . . 998,541 Grand Junction, Colo. . . . . . . . . . 740,944 42.5 Emporia, Kans. . . . . . . . . . . . . . . 347,139 63.1 showed decreases in the clearings except Oklahoma City, whose increase of 62.6% over April of last year is accounted for by the transactions of the branch Federal Reserve Bank in that city, established last fall. Debits to individual accounts in sixteen reserve cities of the district for four weeks ending May 11, 1921, totaled $932,410,000, which is 25.1 % less than the debits to individual accounts reported for the corresponding four weeks in 1920. BUSINESS MORTALITY April defaults in the United States, as reported by Dun's were 1,487 in number and $38,567,769 in liabilities. Compared with the previous month of March the April figures indicate an increase of 151 in number, but a decrease of $28,841,130 in the liabilities. Following are the numbers of defaults and liabilities for April by Federal Reserve Districts: No. No. District 1921 1920 First . . .. .. .. .. .. 145 51 Second . . . . . . . . . . 229 117 Third . . . . . . . . . . . 104 24 Fourth . . . . . . . . . • 118 36 Fifth . • .. .. . .. .. . 154 14 Sixth . . . . . . . . . . . . 136 3SSeventh . . . . . . . . . 178 39 Eighth . . . . . . . . . . 115 14 Ninth . . .. . .. . .. . 39 16 TENTH . . . . . . . . . 50 32 Eleventh . . . . . . . . 98 16 Twelfth . . . . . . . . . . 121 109 Liabilities 1921 $ 1,746,699 10,471,232 2,227,631 4,366,788 3,334,591 1,997,350 3,949,115 2,427,872 593,718 1,966,778 2,905,847 2,580,148 Liabilities 1920 $ 982,320 2,865,153 278,334 352,946 88,450 361,833 4,551,640 200,207 681,330 628,450 100,582 2,132,890 April totals ...... 1,487 March totals ..... 1,336 $38,567,769 67,408,909 $13,225,135 12,699,326 504 566 The Tenth Federal Reserve District i next to the lowest in the list of the twelve districts· Ninth or Minneapolis District standing at the botto~. MERCANTILE TRADE Wholes~le.~Although the whole ale dry goods business a! this time seems to be out of joint, reports show sales m March and April this year, while reduced about one-third in each month from the sales of March and April of 1920, exceeded sales for the same Total, April, 1921 ............ $1,238,127,556 *33.5 month~ in 1919, 19!8 _and 1?17. This fact i not fully Total, Year to date ........... 6,240,395,703 *32.1 appreciated unless 1t 1s realized that prices for textiles *Percentages are computed on totals for twenty-eight are now lower than they were in 1919, 1918 and "1917. cities which reported monthly for this year and last year. In the grocery line the volume of trade is fairly libDEBITS TO INDIVIDUAL ACCOUNTS IN SIXTEEN eral, the tonnage fully up to last year although on acCITIES FOUR WEEKS ENDING MAY 11, 1921 count of weather and road conditions April ales were Atchison, Kans. . . .......................... $ 4,150,000 und~r March sales and about 3.5 % under la t year's Bartlesville, Okla. • . . . . . . . . . . . . . . . . . . . . . . . . . 9,084,000 Apnl sales. Wholesale furniture dealers report that Cheyenne, Wyo. . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,086,000 Colorado Springs, Colo. . . . . . . . . . . . . . . . . . . . . . 9,488,000 recently t_heir trade ~nd ·collections improved, with a Denver, Colo. ; . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132,085,000 freeness m purchasmg by retailers in agricultural Joplin, Mo. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,965,000 towns. Rug prices declined approximately 20% in Kansas City, Kans. . . . . . . . . . . . . . . . . . . . . . . . . . 13,093,000 pril and furniture in that month made another deKansas City, Mo. . . . .. . . .. . . . . . . . .. .. . .. . . . . 275,404,000 . Muskogee, Okla. . . . . . . . . . . . . . . . . . . . . . . . . • . . . 15,067,000 cline of about !0%. Dealers are handling fully a ~ Oklahoma City, Okla. . . . . . . . . . . . . . . . . . . • • . . . 79,700,000 m~tch merchandise as last year, with the difference in Omaha, Neb. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163,855,000 pnces of goods accounting for the shrinkage of sales Pueblo, Colo. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,086,000 in dollar and cents. Whole ale hardware sale are St. Joseph, Mo. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61,617,000 Topeka, Kans. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,389,000 reported as still below normal, but there is a better Tulsa, Okla. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82,720,000 feeling prevailing than for some time. Stocks are beWichita, Kans. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38,621,000 ing reduced, deliveries prompt in all lines. Wholesale paint busines picked up with a jump the early part Total, four weeks, 1921 ...................... $ 932,410,000 Total, four weeks, 1920 ...................... 1,245,711,000 of April but after the 15th was checked by unfavorable THE MONTHLY REVIEW weather. Store sales continue to show a big improvement and even with selling prices about one-third less than a year ago the volume of sales is exceeding any previous spring business, thus proving that the public believes in painting up. A summary of the wholeal~ reports showing percentages of decrease in money volume of sales for April compared with sales in April of la t year, follows: Athletic goods 30%, dry goods 33%, millinery 10%, jewelry 51.6%, hardware 35%, paints 26.4%, drugs 11 %, furniture 24.3%, and groceries 35%. 3 A group of stores, dry goods, furniture, hardware, and general merchandise in smaller cities indicated by their reports that April sales were 20.4% le s than in April last year and 7.2% less than in March. BUILDING Reports from seventeen cities in the Tenth Federal Reserve District reflect continued improvement in building activity. Permits issued in these citie8 totaled 2,668 for April, an increase of 584 over the number of permits issued in April, 1920. The estimated cost of building for the month under review totaled $5,Retail Trade.-Reports from representative stores in 656, 120, a decrease of 2,886,413 from the total for cities of the Tenth Federal Reserve District indicate April last year. The reports indicate that constructhat sales of merchandise at retail, measured by money tion of many of the larger buildings now proJected is value, in April and in the first four months of 1921, , delayed and more attention is given to the erection of were behind the sales in the corresponding month and homes to relieve housing conditions. Only five cities four months period of 1920. Price changes consid- report a decrease in the number of permits i sued and ered, it is evident that retail merchants are now dis- only six cities report a decrease in the estimated cost tributing more merchandise than last year. A favor- of buildings to be constructed. The reports follow : able factor in the situation, as pointed out by retailPct. er , is that prices are becoming stabilized, deflation is Change Est. Value I Permits about completed and merchants' stocks are lighter. Denver, Colo.. . . . . . . . . . . 562 61.1 $ 916,650 -75.6 767,850 In fact mercantile conditions are regarded as fair. Kansas City; Mo. . . . . . . . 385 699,699 178.2 Sales in April were not quite up to the March volume, Wichita, Kans. . . . . . . . . . 443 2.9 672,298 City, Okla.. . . . 216 while heavy rains and bad roads had a depressing ef- Oklahoma -58.8 625,865 Omaha, N eh. . . . . . . . . . . . 194 fect on the retail trade in the early part of May. How- Tulsa, Okla. . . . . . . . . . . . 168 -46.0 607,425 15.2 431,660 ever, warmer weather and clear skies in the latter part Okmulgee, Okla. . . . . . . . 56 240,080 36.4 of the month stimulated buying activity in many lo- Kansas City, Kans. . . . . . 109 37.6 151,182 Topeka, Kans. . . . . . . . . . 92 calities. 147,746 71.8 Muskogee, Okla. . . . . . . . 41 137,827 6.9 Reports from leading department stores showed an Lincoln, N eh. . . . . . . . . . . 67 -49.8 76,646 average decrease of 2.8% in sales for April, 1921, as Colorado Springs, Colo.. . 95 68,713 61.7 Colo. . . . . . . . . . . 100 compared with April, 1920, while sales from January 1 Pueblo, 67,090 .3 St. Joseph, Mo. . . . . . . . . 109 to May 1 this year averaged 1.8% less than in the Joplin, Mo. . . . . . . . . . . . . 16 22,900 -11.6 19,600 -86.4 corresponding four months of 1920. Cheyenne, Wyo. . . . . . . . . 21 114.3 16,000 Leavenworth, Kans. . . . . . 4 Men's clothing houses reporting show a decrease of $5,656,120 -33.8 17.7% in sales for April and 14.6% for the year to April, 1921 . . . ......... 2,668 8,542,535 May 1 as compared with sales in the month and four April, 1920 . • ....•...... 2,084 The demand for new construction appears to be inmonths period last year. Women's wear sales increased 7.6% in April and there was an increase of sistent everywhere. Lumber and material prices have 8.8% in sales for the first one-third of 1921 over the declined to such an extent as to give more encourageales for the corresponding month and four months ment to building operations. Negotiations looking to period last year. Retail hoe sales increased 8% for the adjustment of new wage scales for the building April and for the year to May 1 were 15% ahead of trades, however, are slow and necessarily much of the larger construction is held back in the cities. la t )'ear's sales. SUMMARY OF RETAIL STORES RE PORTS FOR MONTH OF THE TENTH FEDERAL RESERVE DISTRICT Department Stores Percentage increase (or decrease) of net sales during April, 1921, over net sales during same month last year ................................... : - 2.8% Percentage increase (or decrease) of net sales from January 1, 1921, to April 30, 1921, over net sales during same period last year ................... . - 1.8 Percentage increase (or decrease) of stocks at close of AprH, 1921, over stocks at close of same month last year ..................................... . -21.6 Percentage increase (or decrease) of stocks at close of April, 1921, over stocks 1.7 at close of March, 1921 .............................................. . Percentage of average stocks at close ol each month this season ( commencing 346.9 with Jan. 1) to average monthly net sales during the same period ....... . Percentage of outstanding orders (cost) at close of April, 1921, to total pur4.8 chases (cost) during the calendar year, 1920 ......................... . Percentage of collections during month of April, 1921, on amount of outstand49.3 ing accounts on March 31, 1921 ....................................... . 48.2 Percentage of collections for same period last year ....................... . APRIL IN Men's Wear Women's Wear Shoes 8.2% -17.7% 7.6% -14.6 8.8 15.9 -28.8 1.1 -47.1 4.7 10.1 1.0 322.8 198.3 238.1 2.4 12.0 36.2 39.6 52.0 ·52,0 73.4 68.8 THE MONTHLY REVIEW 4 AGRICULTURE Winter Wheat.-The condition of winter wheat on May 1 in the Tenth Federal Reserve District ~as reported by the United States Bureau of Crop Estimates as follows: Kansas •.••.•......•..•• Nebraska ••.......•.•..• Oklahoma • • . • . . . • . • . • . • Colorado . • • . . • . . . • . • . • . . Missouri, 19 counties. • . . . . Wyoming • • • • • • . . . . • • . • • New Mexico, 10 counties. . • Acres for Condition Est. Yield Mayl Bushels Harvest 138,659,000 84% 9,710,000 56,548,000 92 3,235,000 37,498,000 84 2,976,000 91 17,100,000 960,000 9,741,020 84 612,720 1,291,000 61,000 92 1,538,000 87 86,000 Tenth Dist., May 1, 1921 .. 17,630,720 Tenth Dist., Final, 1920 ..• 16,957,000 United States, Ma 1, 1921.38,721,000 United States, Final, 1920.37,773,000 85.8 81.5 88.1 79.1 262,375,020 272,370,000 629,278,000 578,000,000 The reports from all states indicate that the growth of winter wheat was checked somewhat by cold weather in April and continued low temperatures and wet soil in the early part of May. In spite of this deterioration the conditions were generally favorable for a good crop, unless the decline in condition in May and up to the harvest is greater than has been es timated. Last year the condition improved greatly in May and June. The Kansas report says wheat deteriorated during April and that 8% of the wheat sown last fall will not be harvested this year but will be devoted to spring sown crops. The greatest area of abandonment of acreage is in the counties west and southwest from Salina in the heart of the wheat belt. Present conditions arouse no enthusiasm. Throughout the central and north central counties the plant lacks in strength and vigor and the stand has been thinned from continuous spring freezes, and fields that appear green and healthy from the distance leave much to be desired on close inspection. The green bug seems to be the least of the troubles of the Kansas wheat. The Hessian fly is present in parts of the state in early sown fields and red rust is threatening in other sections. Oklahoma also reports a deterioration of wheat during April, an unusual situation, as only once in the past decade has wheat failed to improve during April. Every district in the state reports condition on May 1 inferior to that of one month previous and a lack of thrift in the growth of the crop is evident in many localities. The orange rust, green bug, Hessian fly and straw worms combined with instances of cold wet soil are held to be accountable for this condition. In a number of the counties in the northwest and southwest parts of the state the ground has become dry and rain is needed. The crop generally is ready to begin heading. The acreage abandoned is much below that of last year. In Nebraska 2% of the acreage of winter wheat was abandoned, the greatest loss being in the west central part where drought conditions prevail. Except in west central Nebraska the stand of winter wheat is very heavy and the crop farther advanced than usual for this date. Low temperatures this spring injured some of the leaves and stems and a few of the stalks and branches but most of the wheat is still thicker than desirable. The condition in Missouri is showing considerable improvement. The growth is rank and forward. The green bug has practically disappeared, the chinch bu_g has been injured by cold damp weather, and there 1s no complaint of the Hessian fly. In the mountain states the condition of winter wheat is generally good. In Wyoming the acreage abandoned on account of winter killing and other causes was 8% compared with 6% last year. Moisture conditions are good in that state as well as in Colorado. In New Mexico the condition is fair with some damage from high winds. Spring Wheat.-Indications point to an increase in the acreage of spring wheat in the mountain states, particularly in Colorado and New Mexico. In the first week in May many farmers in New Mexico were still planting for a late crop. There was a total of 608,500 acres of spring wheat harvested in the states of this district last year with a total crop of 12,804,500 bushels. No official report on the acreage or condition of spring wheat has been made at this date. Corn.-Planting is still active in Oklahoma and cultivation progresses in regions not too severely injured by the freeze of last month. Many instances of replanting are reported. Along the Missouri Valley it has been too cool for planting and most of the area was unplanted at the end of the first -week of May. Considerable of the land had to be re-worked. In both Kansas and Nebraska weather interfered but conditions were materially improved by the middle of May. Other Grains.-The oats crop is backward and damage by greenbugs is reported from a number of counties of Oklahoma. In Missouri the crop is recovering from the freezes. Some fields in the north are thin, and considerable reseeding has been done. In Nebraska the crop is improving but warmer weather is needed. The reports are generally favorable for rye, and barley is making favorable progress. Potatoes.-Cool and wet weather has retarded the growth of Irish potatoes. · In Colorado and Wyoming seeding was progressing normally at the first week in May. Early potatoes in Kansas and Nebraska were recovering from slight frost damage. Delayed cultivation on account of wet soil caused some damage. Oklahoma estimates 65% of a full crop in the eastern commercial section. • Fruit.-The outlook is favorable in Mesa, Delta and Montrose counties of Colorado. Other counties report the fruit crop reduced one-fourth to one-half. In New Mexico the crop of stone fruit will be small. Some varieties of apples have been killed but there will be a full crop of other varieties. A plentiful grape crop is expected although some advanced vineyards were killed. The Missouri report says berries in the southwest were again injured by freeze. There will be some berries, grapes, a few apples and cherries in the north. Fewer apple trees were set out this year than last. In Nebraska late apples may average 50% of a normal crop and early apples will range from a failure to 25% of a full crop. Peaches, plums and pears are practically a failure while cherries range from ·a failure to SO% of a crop. Grapes range from 60% to 75% of a crop, currants and gooseberries 70%, blackberries, raspberries and strawberries 90% to 100%. THE MONTHLY REVIEW GRAIN MOVEMENTS Receipts of wheat at the market centers are unusually heavy for this season. At Kansas City, Omaha, St. Joseph and Wichita, the four principal markets of this district, the receipts in April totaled 10,931,900 bushels. The increase over the corresponding month last year was 6,307,300 bushels or 136.4%. Some increase in milling activity over last year is noted in the reports from these markets. There has also been some improvement in the export trade via the Gulf. The increased marketing of wheat in April, which is continuing through May, is making a considerable reduction of the stocks of wheat on farms. Kansas farmers, according to correspondents reporting April 16, were holding 25,850,000 bushels or 18.4% of last year's crop, their holdings being 3,900,000 bushels more than at the same time last year. The quantity of wheat in mills and elevators, however, is much less than a year ago. On the other hand the farmers are apparently holding much of their corn until a good crop is assured for this year. The receipts at the four markets in April were 2,212,850 bushels, or 1,204,550 bushels less than the receipts in 1920. Receipts of oats, rye, barley and kaffir in April also registered large declines as compared with the receipts of April of last year. Average cash prices of grain at Kansas City are here given in cents per bushel on dates mentioned: Wheat April 15 No. 2 Dark Hard Winter .. 134½ No. 2 Hard •............ 127½ No. 2 Red .•.....•...... 125 April 29 129¾ 132½ 127½ May 13 152 150 156 Corn No. No. No. Oats No. 2 White ••.......... 50 2 Yellow ........... 53 2 Mixed ••.....•..•• 49 53¾ 57 53 58 57½ 56 2 White ............ 36 40½ 42 FLOUR PRODUCTION Mills at Kansas City, Omaha and at 82 interior points made 1,193,081 barrels of flour in April compared with 998,981 barrels made in April, 1920, according to the Northwestern Miller's report. In the first week of May there was a slowing down of operations to 264,426 barrels, or 31,917 barrels below the record of the corresponding week in 1920. In the secohd week of May milling activity was resumed with the output exceeding that of the week in 1920. The following shows the number of barrels produced 5 in April with the percent of increase over April of last year and also the percent of capacity operation: Barrels Kansas City • • . . . . . . . . 266,200 Omaha • . . . . . . . • . . . . . • 54,995 82 mills . . .. . . .. . . . .. . 871,886 District • . ............ 1,193,081 Pct. Inc. Pct. Activity 73.1 59 62.1 57 7.5 45 19.4 54 Export demand for flour is holding its own and there is noted a slight improvement in the bakery demand, although jobbers are buying flour sparingly, with prices on a wide range. Flour receipts at Kansas City in April were 60,450 barrels and shipments 309,075 barrels. In April last year the receipts were 35,000 barrels and shipments 152,750 barrels. SUGAR BEET INDUSTRY Four states in the Tenth Federal Reserve DistrictColora,do, Nebraska, W yarning and Kansas-produced approximately 3,231,000 tons of sugar beets on 310,850 acres harvested last year. Growers received, under contract with sugar corporations, a total of $38,456,000, an average of $11.90 per ton, for their beets. From this tonnage 25 factories in the four states made 407,550 tons of sugar, this being 37.4% of the total production of beet sugar in the United States in 1920. Contracting of acreage of sugar beets by the refineries continued this season almost to the middle of May, and while full reports have not been received to this date it is known that approximately 300,000 acres, or something like 3.4% less than last year's acreage harvested, has been contracted for. A few of the factories are exceeding the contracted acreage of 1920 while others are reporting a slightly reduced acreage. Colorado, which led the United Sta tea in sugar beet growing last year, reports a total of 213,000 acres under contract for this year's harvest. Nebraska reports 69,000 acres, Wyoming 14,000 acres and Kansas 4,500 acres under contract. Refineries report that on the whole this season's contracted acreage is very gratifying in view of the price offered for beets. An unusually large percentage of the contracted acreage has been planted early and the soil and moisture conditions in the principal beet growing sections of these four states are so favorable as to indicate that there will be a very slight falling off between the acreage contracted and the RECEIPTS AND SHIPMENTS OF GRAIN (BUSHELS) AT AND FROM FOUR PRINCIPAL MARKETS IN THE TENTH DISTRICT FOR THE MONTH OF APRIL, 1921 AND 1920 RECEIPTS Kansas City Wichita Omaha St. Joseph Four Markets ·1921 1920 1921 1921 1920 1921 1920 1920 1921 1920 Wheat . . . ...... 6,863,400 2,235,600 1,764,000 996,000 1,400,000 1,006,000 904,500 387,000 10,931,900 4,624,600 25,000 550,000 1,139,600 2,150,400 45,000 409,500 672,000 Corn . . ........ 638,750 2,212,850 3,417,400 312,000 1,196,000 5,000 15,000 36,000 130,000 188,700 Oats .. ......... 181,900 534,900 1,529,700 10,000 28,600 44,000 155,100 ........ Rye ............ 25,300 69,300 193,700 14,000 26,250 Barley . ........ 61,500 48,600 . ······· 129,150 115,500 . 41,400 178,100 8,000 85,000 448,800 .. .. ... ........ 10,500 Kaffir .•..•.... 287,100 305,600 533,800 SHIPMENTS 750,000 670,000 568,500 186,000 9,645,300 4,418,800 Wheat . . ....... 6,318,000 2,354,400 2,008,800 1,028,400 39,000 492,000 345,000 10,000 331,250 1,759,800 1,983,800 2,913,050 2,699,050 Corn ........... 651,250 12,000 378,000 1,174,000 5,000 26,000 178,500 78,000 803,500 1,442,500 Oats ........... 394,500 57,200 268,400 . ....... 10,000 1,400 63,800 72,900 342,200 Rye ............ 14,300 14,000 41,400 65,000 30,600 . ....... 1,750 140,650 109,600 Barley ......... 97,500 8,000 85,000 217,000 . .. . . . . . ........ 275,000 Kaffir .......... 267,000 302,000 . 6 THE MONTHLY REVIEW acreage harvested unless unforseen climatic conditioi;is intervene. In the principal beet raising sections of these four states growers had their choice of contracting for the ale of their beets at a flat rate per ton, or a sliding scale. The flat rate generally fixes the price of beet_s at $7.00 per ton, while under the sliding scale the net selling price obtained by the factories for the sugar made from the 1921 crop is to determine the per ton payment for beets to the growers. In October, November and December the farmers on the sliding scale contract are to receive monthly payments based on the deliveries and on the anticipated net selling price. Over a considerable portion of the beet growing area the flat rate contract guarantees a minimum payment of $6.00 per ton. Last year in these states the price paid was quite commonly $12.00 per ton flat rate. Prospects of a plentiful supply of field labor are good. The price to be paid the contract beet hand labor has been reduced by the growers from $30 and $35 per acre last year to $21 and $22 this season, so that the cost of growing beets will undoubtedly be considerably lower this season. This fact, and the growers' preference for a guaranteed price crop insuring them a ready cash market for their products in the fall, are among the reasons for the unexpectedly large beet acreage this season. The refined sugar market declined 75 cents a bag of 100 pounds in the last week of April, with a considerable portion of the sugar made from the 1920 crop still on hand. In view of this decline, and the anticipated narrow margin from the forthcoming crop, all factories are reported as adopting retrenchment measures common to virtually all lines of business. 1,585,982 head, compared with 1,754,444 head in March of this year and 1,664,483 head in April of last year. The supply of cattle and calves at these markets in April was a fraction over 5% below the total number of cattle and calves received in the corresponding month last year. There was a decrease of 19% in the number of hogs received and an increase of 10.9% in the number of sheep received in April as compared with the corresponding month in 1920. Horses and mules marketed were about 40% less than a year ago. The receipts of all classes of live stock at these markets follow: Horses & Cattle Calves Hogs Sheep Mules Kansas City . . ... 126,865 13,843 186,504 152,026 2,247 Omaha . • •......• 103,312 4,114 241,169 209,163 687 St. Joseph ••..... 33,177 3,587 116,034 99,147 673 Denver •......... 19,040 1,710 26,916 110,753 978 Oklahoma City ... 17,423 1,862 46,647 512 23 Wichita ......... 27,367 1,018 36,034 3,684 587 April, 1921 ....... 327,164 26,134 March, 1921 ...... 387,411 39,885 April, 1920 ....... 347,760 27,624 652,304 714,332 732,754 575,185 604,167 546,343 5,195 8,649 10,102 Prices in all markets have shown only slight changes in the last thirty days. Live stock of all kinds at present are far below the prices of a year ago when hogs were selling at $14.00 to $15.00 per hundred pounds, choice dressed beef steers at around $13.50 to $14.00 and lambs as high as $20.00. The price changes in the last month are here shown by the following quotations on the dates mentioned: April 19 May 3 May 17 Hogs, bulk of sales .... $7.60@ 8.50 $7.65@ 8.50 $8.00@ 8.25 Beef steers, choice ..... 8.25@ 9.10 8.40@ 9.25 8.30@ 9.10 Butcher cattle, · common to choice .... 6.15@ 8.15 5.50@ 8.15 5.25@ 7.85 Feeder steers, common to choice. . • . 6.50@ 8.16 7.10@ 8.10 7.00@ 8.10 Stocker cattle, common to choice .... 4.25@ 7.90 4.90@ 7.90 4.76@' 7.75 Lambs, med. to choice.. 9.00@10.36 9.50 10.70 8.75@11.00 Sheep, med. to prime .•• 6.50@ 8.65 6.75@ 9.00 7.25@ 9.50 LIVE STOCK The first three months of 1921 were exceptionally mild and feed was so plentiful that live stock on the The reports from the various live stock centers, as farms and ranges wintered better than usual and were in better shape to withstand the belated cold weather ~ell as from the producers on farms and ranges, inwhich came at the end of March and held on, with dicate that the industry is steadily adjusting itself, and slight variations of temperature through April to the although producers have suffered financial losses there first week in May. A lack of moisture in New Mexico is a healthier tone to the entire situation. necessitated considerable feeding. Cattle and sheep MEAT PACKING The reports from the various meat packing centers were reported in poor condition with some losses during the lambing and calving season. In Colorado and indicate considerable activity in the slaughter of aniWyoming the conditions were more favorable and · mals. The total number of cattle and calves slaughthere is reported only a minimum loss of lambs and tered in April was but slightly below that of April, practically no loss in calves. Some losses were sus- 1920, while the reports also show there was a decided tained where flock masters started shearing their sheep increase in the number of hogs and sheep slaughtered too early. While there have been no epidemics of dis- in April as compared with April, 1920. The following ease among live stock, there has been s9me mortality table, based on purchases by packers of animals for among cattle and horses in certain sections, ascribed slaughter, shows the April activity at each packing principally to anthrax and the stable fly. Cholera center with the total for six cities as of April, 1921, made its appearance in a number of sections in Kansas, and April, 1920, for comparison: Cattle Calves Hogs Sheep Oklahoma and Nebraska, but the mortality among 11,969 Kansas City ...... . 73,145 163,234 122,363 hogs has not been so great as in 1912, 1913 and 1916. Omaha ••......... 66,924 1,343 182,931 142,752 On the whole all live stock is reported at this date St. Joseph ••.....•. 22,609 3,362 103,834 71,435 1,178 25,192 14,724 in May in about · the average condition for this time Denver .......... . 8,154 Oklahoma City • . .. . 8,603 1,252 41,257 507 of year. Wichita .. ........ . Live Stock Market Movements.-Receipts of all classes of live stock at the six principal markets of the Tenth Federal Reserve District in April totaled 3,660 771 34,810 442 April, 1921 • . . ..•.. 182,095 March, 1921 ....... 207,674 April, 1920 ........ 188,792 19,875 30,298 23,083 551,258 643,879 523,278 352,223 378,885 268,201 THE MONTHLY REVIEW Packers report improvement in the industry during the month of April, one of the most hopeful sig?s being a revival of buying for export account. Some European countries which for months past practically had confined their buying to purchases from stocks already abroad ordered meats for shipment from America. Both meat and fats figured in the month's export business and gave rise to a hope that a continually broadening market will be reopened in England and on the Continent. Although wholesale beef prices declined still further during the early part of April, the trade later bowed improvement and the demand was broadera good sign for American industry as a whole. There i considerable evidence that traders have ceased to be afraid to buy; that there has been, to a degree at least, a restoration of confidence and a conviction that values are stabilizing. Hides began to move into market channels. Hide quotations ceased to be merely nominal figures. Although the trade in hides almost ceased at the end of the month, its revival bore witness to .the improvement in the shoe industry. PETROLEUM Production of crude oil in Kansas and Oklahoma has shown steady gains each week this season and is now running at about 35,000 barrels more per day than at this time last year. The weekly reports on production, which are accepted as unofficial in advance of the official U. S. Geological Survey reports, give the average daily output in barrels for the two tates at each weekly period mentioned: 1921 Week Ending Daily Av. Bbls. April 22 ...........••••. 374,500 April 29 . . .............. 378,500 May 6 . . ~ .............. 392,000 May 13 . . . .............. 399,000 1920 Daily Av. Bbls. 349,500 356,500 357,000 361,000 The production in Kansas and Oklahoma for the full month of April averaged 374,250 barrels per day and was for the 30 day month approximately 11,227,500 barrels, compared with 10,497,750 barrels in April, 1920. Production in Wyoming and Colorado is estimated at 1,700,000 barrels for April compared with 1,624,(X)() barrels in March and 1,350,000 barrels in April, 1920. Development operations in April were considerably below the record for the previous month this year and also below the record for April, 1920, due to low prices of crude oil and efforts to curtail production to pipe line and storage capacity. Wells completed in April were 23.4% fewer than in March and 41.2% fewer than in April of last year. However, a summary of development operations shows that the average daily new production per well in April was 110.8 barrels a compared with 93 barrels in March and 67 barrel in April, 1920. The summary: Wells Completed Kansas ...... . 144 Oklahoma .... . 400 Wyoming ..... . 44 April, 1921 . . .. March, 1921 . . .. April, 1920 .... 588 768 1,001 Bbls. Daily Rigs and Wells New Prod'n. Drilling 7,980 322 1,482 46~72 10,695 622 65,147 71,460 67,864 2,426 ' 2,500 3,149 7 Reductions of 25 cents per barrel on May 2 brought all grades of Kansas and Oklahoma crude oil to $1.50 per barrel, except Healdton, which was $1 per barrel. A 25 cent reduction in Wyoming affected the production of six of the principal producing fields. A radical revision of gasoline and kerosene prices was made in the latter part of April, the cut amounting to 4c per gallon in Kansas, Missouri, and part of Oklahoma. LEAD AND ZINC Conditions in the lead and zinc industry for the Missouri-Kansas-Oklahoma district in April were slightly improved, as compared with March, though still far below the conditions of one year ago. A summary of the Joplin market report for the month shows shipments of ores and average prices, with comparisons, as follows : Tons Shipped April, 1921 April, 1920 Zinc blende . . .. 26,024 55,305 Calamine . . . . . . . 30 510 Lead . . ......... 5,998 10,098 Average Price April, 1921 April, 1920 $23.05 $46.23 12.00 38.44 46.20 108.82 Comparing April returns with those of March it is shown that there was an increase for the month under review of 3,886 tons of zinc and 1,522 tons of lead ores. The average prices for April were $1.13 more for zinc and $7.23 more for lead than the averages for March. Surplus stocks of zinc blende in the bins of the ore producers are estimated to be 70,000 tons and of lead 900 tons, these figures comparing with 33,000 tons of zinc and 100 tons of lead one year ago. With the increase of lead ore prices each week additional properties are opening up, especially in mines where the percentage of zinc runs high, and a considerable portion of idle labor is absorbed in this way. COLORADO METAL MINES Metal mining in Colorado continues in a very quiet state. The curtailment of production previou ly mentioned in the monthly reports, is causing a slowing down in the operation of smelters. Conditions in Cripple Creek are improving slightly and there seem.~ to be some tendency to start new work in other districts where gold and silver predominate and the low prices of base metals do not affect returns materially. COAL MINING April brought some improvement in production of soft coal in the states of this district and also in other districts throughout the United States, as compar~rt with the low productive activity during March. The improvement, however, did not bring mining operations up· to the activity of the corresponding period in 1920, and at the end of the month the estimated production in the United States for the calendar year was approximately 129,000,000 net tons, or approximately 42,500,000 tons less than in the first four months of 1920. · The reports seem to indicate that the mines in Mi souri, Kansas, Oklahoma, Colorado, Wyoming and New Mexico are sharing proportionately in the huge loss of production. There is a great lack of market demand in spite of the urgent appeals being made by dealers to buy coal for the next winter. Even mines supplying railroad fuel have slackened operations on account of being well stocked. 8 THE MONTHLY REVIEW Statement of Condition FEDERAL RESERVE BANK OF KANSAS CITY Including Branches At Close of Business, May 18, 1921 RESOURCES Gold Coin and Certificates ................ .. $ Gold Settlement Fund F. R. Board.......... Gold with Federal Reserve Agent. . . . . . . . . . . Gold Redemption Fund . . . . . . . . . . . . . . . . . . . Legal Tender Notes, Silver, Etc............. Bills Discounted: Secured by Govt. Obligations........... All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . Bills Bought in Open Market ....... , . . . . . . . U. S. Govt. Bonds......................... One Year Cert. of Indebtedness (Pittman Act) All Other Cert. of Indebtedness............. Bank Premises . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5% Redemption Fund Against F. R. Bk. Notes Uncollected Items . . . . . . . . . . . . . . . . . . . . . . . . All Other Resources . . . . . . . . . . . . . . . . . . . . . . 1,948,251.12 36,522,4,99.81 34,030,760.00 4,077,il4.75 3,637,631.05 / 24,311,175.75 56,970,595.40 25,000.00 8,867,850.00 10,320,000.00 13,500.00 2,445,052.25 915,590.00 42,343,092.30 518,921.20 T,otal Resources .............. ........ $226,947,033.63 LIABILITIES Capital Paid In . . ......................... $ Surplus . . ...................., . ~ . . . . . . . . . Reserved for Government Franchise Tax .. Deposits: Government . . ....................... . Member Banks, Reserve Account ....... . All Other ........................... . F. R. Notes in Actual Circulation .......... . F. R. Bank Notes in Actual Circulation ..... . Defened Availability Items . . ............ . All Other Ljabilities . . . .................. . 4,498,150.00 9,158,814.24 1,260,817.20 3,053,509.02 68,472,398.27 797,715.01 85,367,645.00 11,808,800.00 40,987,379.87 1,537,805.02 Total Liabilities . . . ................... $226,947,033.63 OTHER TOTALS Total Gold Reserves . . .................... $ 76,578,625.68 Total Earning Assets . . . ... .. ... ......... . 100,508,121.15 Total Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . 72,323,622.30 Ratio of Total Reserves to Deposit and F. R. Notes Liabilities Combined . . . . . . . . . . . . . 50.8% Ratio of Gold Reserve to F. R. Notes in Actual Circulation after setting aside 35% against Deposit Liabilities . . . . . . . . . . . . 64.3% CLEARINGS Total Clearings for Week .................. $166,557,130.72 Total Number of Items Handled. . . . . . . . . . . . 1,218,374
@FedFRASER