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THE MOi\JTHLY BULLETIN Covering Conditions in the Tenth Federal Reserve District FEDERAL RESERVE BANK OF KANSAS CITY For tht lnformatio1.1 of Member Banks and Business lntere.'its of this District ASA E. RAMSAY, ChafrmH Boar• Dinctors •"" Fed«•I R•'-«'ll• Agent C. K. BOARDMAN, Assistant F1dera/ R1s,rv1 Atenl and S,cretary a--------------·------·-----------------------a Vol. 5 KANSAS CITY, MISSOURI, MAY 25, 1920 PRIL was the first month to show anything like real recession from the high tide of activity that has featured business in the Tenth Federal Reserve Di trict ince th houting was over and th people began to apply themsclvc to task in ident to after-war rcadjustm nt. Ther have b n times in the past y ar and a half when a lowing down of bu in vS in some line-, re ulted from industrial troubles, such as the st el strike and the coal trike, but these were generally regarded as easy to be bridged over and merely temporary deterrents to greater and more lasting progress to follow. It remained for 1he strike of railroad employees inaugurated in April, and the resultant hampering of an already crippled system of transportation, to halt for a time the free movement of freight and to bring partial paralyt.is to business. A Reports to this issue of the Mon':hly Bulletin on business conditions convey some idea of the extent of the curtailed movement of grain and live stock and product of mines and oil field to market centers, a~ w 11 as difficu'ties in the handling of the output 9f mills and factorie and distribution of merchandise. But the reports fail to adequately di3close the financial hardships imposed on producers and shippers by enforced withholding of products from the market at a time of high money rates and credits stretched to the limit. Nor do they reflect the enormous losses to employees a.nd ..employer on account of business interruption, to say nothing of the added cost of living to the public by increased prices of food and commodities due to the shortage of supplies. The situation was improved late in April and in the forepart of May and business took on a more buoyant and hopeful tone, though on May 20 there were stiJl evidences of congestion of freig-ht cars in terminal yards and at market centers, while complaints of delayed freights were numerous. But aside from the switchmen's strike and the re•sultant temporary tie-up of traffic, an impression prevails among the producers throughout this district that no great and permanent improvement in freight movement can come until the railroad make large investments in new freight car , motive pow r and rail betterments, in order to handle the enormously increased volume of traffic and thus eliminate disturbances to trade, indtt try and finance. No. 5 A result of the disturbance to business activity in April was the rude awakening of a large proportion of our people to a realization of the necessity of abandoning speculation, eliminating extravagances and waste an 1 saving and economizing in order that money and er <lit be employed for the larger production of foods ;ind ommo<lities to help m et consumptive d mand: and heal clown the abnormally high pric s. Many of the merchants' r ports co cring April business t ell of a slowing down of buying by consumers and of some deliberate refusals to buy as a protest against high prices. That this attitude of the consumers is beginning to be felt is seen in the late country-wide reports telling of reductions of prices on many of the commodities; indicating that the price readjustment for which everybody has been waiting is at least making some headway. On the whole, the general situation is regarded in this district as one of encouragment, although it is conceded that more or less unsettled conditions are to prevail during the slow process of readjustment. The cool, backward spring season has had somewhat of a depre sing :ffect on condition , but with the weather warming up, a decided improvement is noted day by day, with indications pointing to a continued heavy business through the year. FINANCIAL. Since the adoption of the progressive discount rates by the Federal Reserve Bank of Kansas City there have been many evidences of curtailment of credit by the larger financial and commercial institutions of this district. The expansion of credit continued for about two week after the adoption of the progressive rate, owing to seasonal demand and commitments atr ady made. Since the 5th of May, however, there ha been noticed a steady and con istent reduction, and it is felt that this reduction will continue gradually and on a safe and conservative basis. The only disturbing feature in the financial situation, as it applies to the Tenth Federal Reserve District, is the shortage of railroad car in which to move the grain. It is estimated, in certain sections of the district, there is still on hand in the grain elevator and in the farmers' bins at least 50% of last year's crop. Before this can be moved, unless there i a marked improvement in transportation facilities, this year's crop will be harvested. This, of course, ab- .2 THE MONTHLY BULLETIN sorbs millions of dollars of loanable funds and prevents liquidation. While it cannot be denied there is a general tendency toward curtailment of credit an<l that interest rates have advanced, it is felt that ample funds will be forthcoming to care for legitimate requirements of the agricultural and live stock industry. Federal Reserve Bank Operations.-Discounted bills and acceptances held by the Federal Reserve Bank of Kansas and its Omaha and Denver branches on May 14 totaled $112,478,798.67 against $108,688,584.18 on April 16. The bills which were secured by Government war obligations increased from $32,658,039.14 on April 16 to $38,680,499.70 on May 14, an increase of $6,022,460.56, and bills purchased in open market were reduced from $461,346.74 to $361,346.74, making the net holdings of discounted paper $3,790,214.49 more at middle of May than at middle April. Other principal items appearing in the statement of May 14, with April 16 figure for compari on, indicat the hanges in one month. May14 April 16 Chang s 4 Wks. Total resources . . .$278,507,535.15 $277,773,644.66 Inc.$ 733,870.50 Total gold reserves • 73,812,092.11 71,128,127.43 Inc. 2,683,964.66 Total earning assets . . • • 134,420,698.67 130,913,834.18 Inc. 3,606,864.49 Total gross deposits . . 151,643,083.18 147,981,514.11 Inc. 3,661,569.07 F. R. Notes in actual circulation . 98,375,215.00 100,661,756.00 Dec. 2,186,540.00 The ratio of total reserve to net deposit and Federal Reserve Notes liabilities combined was 41 % on May 14 as compared with 41.1 % on April 16. Condition of Member Banks.-A combined statement of eighty-three selected member banks widely scattered over the Tenth Federal Reserve Di trict on May 7 showed $561,486,000 of loans and investments, which was $28,018,000 less than the total reported on April 2. Loans secured by Government war obligations were reduced in that time $847,000, while loans secured by stocks and bonds other than U. S. securities were in the period of five weeks between the two reporting dates increased to the amount of $938,000. The heavy reduction, $28,109,000, was in other loans and inve tments by these eighty-three bank . At the same time reserve balances with the Federal Reserve Bank were reduc d $1,166,000 and net demand deposits on which reserve i computed were reduced $28,835,000, although time deposits increased $893,000 between the two dates. May 7, 1920 April 2, 1920 Total U. S. Securities ............ $ 53,034,000 $ 61,116,000 Loans secured by U. S. war obligations (Liberty Bonds, Victory Notes, Cert. of Indebtedness... 19,143,000 19,990,000 Loans secured by stocks and bonds other than U. S. securities..... 79,944,000 79,006,000 All other loans and inve tm nts. . 462,399,000 490,608,000 Reserv balance with Federal Res. Bank . . . . . . . . . . . . . . . . . . . . . . . . 60,258,000 61,424,000 Net demand deposits on which reserve is computed . . . . . . . . . . . . . 428,006,000 456,841,000 97,675,000 Time Deposits . .. . . . . . . . . . . . . . • . 98,568,000 Bank Clearings.-The clearing houses in twentyfour cities of this district indicate an increase of 30.7% in the total transaction in April, 1920, over the total for the corresponding month last year. But April clearings at these centers were about $355,000,000, or about 16% below the total in March of this year, which was the high record month of history for clearing house transactions. Kansas City, Missouri .. $ Omaha, Nebraska . . . . • Denver, Colorado . . . . . . St. Joseph, Mo......... Wichita, Kans. . . . . . . . . Tulsa, Okla. . . . . . . . . . . Oklahoma City, Okla.... Lincoln, Nebr. . . . . . . . . Kansas City, Kansas... Muskogee, Okla. . . . . . . Topeka, Kansas . . . . . . . Joplin, Mo. . . . . . . . . . . . Chey nne, Wyo. . . . . . . Okmulg C', Okla. . . . . . . Colorado ~ prings, Colo.. Hastings, N hr. . . . . . . . Pueblo, Colo. . . . . . . . . . Atchison, Kansas . . . . . . Fremont, Nebr. . . . . . . . McAlester, Okla. . . . . . Pittsburg, Kansas . . . . . Lawrence, Kansas . • . . . Parsons, Kansas . . . . . . Empo1·ia, Kansas . . . . . . April, 1920 April, 1919 Pct. Gain. 997,408,243 $ 796,290,140 26.2 316,273,872 228,585,121 37.9 163,194,203 116,489,381 31.6 72,316,296 70.607.413 2.4 61,309.221 40,926,880 49.8 60,202,635 39,187.574 63.6 59,517,725 44,379,869 34.1 26,211,414 20,681,870 26.7 22,676,194 3,376,894 512.3 18,627,634 11,319,424 64.6 14,639,731 16,365,849 * 5.3 9,011,750 6,344,360 42.0 6,566,866 3,091,760 109.8 6,'189,262 3,874,522 •10.2 6,432,042 2,2!>2.102 98.5 4,470,968 3,fi17,791 8.6 4,106,277 3,206,637 20.2 3,856,366 2,990,245 22.9 3,676,348 3,340,000 1,737,401 48.5 2,579,124 2,039,907 1,720,935 18.5 1,930,250 1,634,429 18.1 1,023,896 1,487,278 *31.2 Total ...............• $1,855,785,992 $1,419,067,878 30.7% Year to date .......... 7,662,697,865 6,676,667,972 35.9 *Decrease. Failures.-Dun's report shows 32 business failures in the Tenth Federal Reserve Di trict in the month of April, the total liabilities amounting to $628,450. These figure. compare with 20 failures and $104,545 of liabilities in the same month in 1919. From January 1 to April 30, 1920, the business failures in this district numbered 104, which is exactly the number of business failures reported for the first four months of 1919. Liabilities in the four months of this year, however, were $1,522,465 as compared with $1,272,850 for the same period last year. Railroad Receipts.-The Kansas City Railroad Clearing House report for April shows a decrease of 9.5% in the receipts for the month, due entirely to strike conditions. The total receipts were $3,061,434.96 for April, 1920, and $3,354,407.24 for April, 1919. The receipts of the Clearing Hou e do not include receipts by the individual railroads. Postoffice Receipts.-Even with 2 cent postage in April, 1920, the receipts at Kansas City were 32.36% larger than for the same month last year when letter postage was 3 cents. The total receipt were $607,468.75 against $458,943.70 in April, 1919. Omaha po toffice receipts were $199,250.79 for April as compared with $197,155.18 a year ago. Collections.-Merchant r •port all say collection were fair or good, although not a good as they should be on account of the difficulty of moving farm products. THE MONTHLY BULLETIN MERCANTILE. While retail merchants in this district continue to report sales largely in excess of the sales of last year, the reports to the Monthly Bulletin show there was a decided falling off in sales during April from the heavy business reported for March of this year. Dry goods stores, by spring cleanup sales, and with a fairly good seasonal demand for spring and summer wear, were able to hold their April sales to a little below the March volume. Men's clothing sales slumped heavily in April. Furniture and housefurnishings suffered a decline of 36.8% from the March reecord, that being the average of the stores reporting, although April sales were 20.5% larger than those of April, 1919. Sales of hardware as reported averaged 15.6% below the previous month and 25% in excess of April a year ago. Other lines were similarly affected during April, although mail order houses did a large business. Department Stores' Reports.-The reports of the large cl partm nt st re in th l ading citie of the 'l' ,nth Di strict to the Monthly Bulletin arc ombincd in the following exhibit: Net sales (selling price) during April, 1920, com pared with net sales for the same month in 1919 .....•........................... Inc. Net sales (selling price) during the first four months of 1920, compared with net sales for the same four months last year ......•..... Inc. Stocks on hand at the close of April, 1920, compared with stocks on hand at the close of April, 1919 .................•........... Inc. Stocks on hand at the close of April, 1920, compared with stocks on hand at the close of March, 1920 . . .......................... Dec. Percentage of average stocks at the close of each month this year commencing with January to average monthly net sales for the same period . . .. . . . . . . • . . . . . . . . . . . . . . . . . . . . . . . Percentage o.r outstanding orders for stocks ( cost) at the close of April, 1920, to total purchases (cost) during the calendar year. . 19.6% 24.9 % 43.3% 3.1 % 272.1 % 18.0 % Combined reports of eight of the leading retail dry goods stores in the district show April sales were 2% below those of March, but 19.8% larger than April last year. Stocks on hand at the end of April were 2.7% less than at the end of the previous month and 29.6% larger than at the end of April, 1919. Wholesale Trade.-Purchases by retail dealers from wholesale fell off perceptibly during April from the high purchasing activity of March. A summary of the reports which were received follows: Sales in April compared with Prev. Mo. Year ago. Furniture ...... same + 30% Millinery ..... -20% 5% Dry Goods . . . -15% +100% Drugs ....... - 5% + 40% Groceries . . . . +7.5% + 24% Stocks April 30 compared with Prev. Mo. Year ago. same +15% - 10% +25% - 20% +25% 3% + 5% - 20% -25% Outstanding orders for stocks at the close of April to total purchases during the calendar year were reported by these houses as follows: Millinery 5%, Dry Goods 25 %. The Trade Situation.-Many merchants are impressed with the belief that prices have reached the highest possible limit, particularly on dry goods and 3 wearing apparel. Reports say that already there are indications that silks are to be lower, and except on carpets, manufacturers of wool have not advanced. As yet there have been no reductions in manufactured cottons, but it is believed that must soon come. The highest priced merchandise on the market, relatively, consist of staple and cotton fabrics, and dry goods merchants say no one has been able to give a good reason for the extreme prices now prevailing. "The sentiment", a large dealer asserts, "is very general among people not engaged in merchandising that prices should and will come down." Most merchants have their accumulated profits of the last four years in merchandise, at from two to four times its normal value, and unless the reaction is gradual it may mean disaster to many. ln the furniture line the demand is still strong for high priced items, while manufacturers still predict higher prices. Hardware dealers see no reason why busmess should not continue good throughout the year unless curlailed by decreased production. Values remain firm with an upward tendency. Groceries have been in good demand with some price reductions. ~ugar 1s very scarce and, except in a few manufacturmg towns, is selling at 28c and 30c per pound. Nearly all the merchants' reports mention car shortage or freight congestion as holding up distribution ot stocks, and with present values far out of proportion to normal, fortunes are tied up in delayed shipments. Commodity Prices.-Bradstreet's index number for May 6 on the price per pound of thirty-one articles used for food was $4.Y6, compared with $4.98 the previous week, $5.05 two weeks previous and $5.00 for the week ending May 8, 1919. May index numbers r fleet a tendency toward a decline in food pnces. Of seventy-six commodities quoted, however, the report showed 19 advanced, 10 declined and 47 remained stationary. AGRICULTURE. The spring planting season in the Tenth Federal Reserve District is from two to four weeks late on account of cool and cloudy weather and wet soil during the last half of April. The first week in May brought sunshine and warmth and with it vigorous growth of vegetation and renewed activity on the farms, though the nights were cool. Precipitation was rather heavy in the southern section and moderate over the rest of the district except in the southwest where more moisture is still needed. Reports of field agents for the Department of Agriculture for the week ending May 6 indicated that in both Colorado and Wyoming all farm work was delayed by snow storms on April 17 and 18, and in many sections May opened with winter crops still covered with snow. Kansas reported spring work very much delayed and the same report came from Nebraska, due to rains. In the western part of Missouri conditions were reported unfavorable, with the season three weeks late. Oklahoma was generally more favored by weather conditions. The report from that state was that the condition of all crops had been improved 4 THE MONTHLY wonderfully by the recent rains and warm weather. New Mexico reported that vegetables and early crops were slow in starting, due to cold, dry and windy weather. Winter Wheat.-The growing wheat in this district made good progress during the cool and damp weather of April, an improvement of about 6% in condition between April 1 and May 1 being recorded. According to the most reliable information obtained by field agents for the Department of Agriculture the total area of winter wheat to be harvested this summer will be slightly less than 15,000,(X)() acres, as compared with a little over 21,000,000 acres harvested last ummer. The estimated production of winter wheat in the district, based on May 1 condition, is 182,433,000 bushels, as compared with 282,697,000 bushels last year, though May estimates are increasing the estimated total for this year. Kansas lost 16% of the winter wheat acreage sown la t autumn on account of poorly prepared seed beds, with much volunt er wheat, lacl of moistur in th winter months and violent wind st nus <luriug the early spring. Still, the number of a res abandoned was not a larg as was reported ix or ight weel s ago, and there is a good deal of speculation as to how much or how little grain is produced by the volunteer wheat, which in many sections is showing a vigorous and healthy growth. As matters now stand, Kansas is expected to produce this year 19.2% of the Nation's supply of winter wheat. Last year the state produced 20.6o/o of all the winter wheat grown in the United States. The average for the five years previous to 1919 was 18.74%. Nebraska, ranking second in winter wheat production in this district, reported on May 1 conditions ideal for that state and 88o/o of normal as compared with 84% one month previous and 97o/o a year ago. The abandonment of winter wheat sown last fall was 8%. Oklahoma, third among the big wheat growing states of the district, reported the condition on May 1 as 77% of normal, an improvement of So/o during the month of April. The area in that state to be harvested this summer is about 900,000 acres less than was harvested last year, 13o/o of the winter wheat sown last fall having been abandoned. In the western counties of Missouri wheat conditions are about the same as in the eastern sections of Oklahoma, Kansas and Nebraska, a considerable por~ tion of the acreage seeded last fall having been abandoned, but with improvement to growing wheat in April. In the mountain states the condition of winter wheat is only slightly below the condition of a year ago and the percent of abandoned acreage is smaU, while there is a plentiful supply of moisture in Wyoming and Colorado where agriculture was hit hard by the dry weather last year. New Mexico has a largely increased acreage of winter wheat although the precipitation through the fall and winter did not come up to expectations. · Corn.-Some planting of corn was report d in the Missouri Valley section by May 1, but progre had been decidedly slow. In Oklahoma the planting was about over by May 1, but considerable replanting was BULLETIN necessary in the eastern section where the com was up. A large com acreage is indicated for this district but the e 'tent of the increa e will be determined by the ability of the farmers in the Missouri, Kansas, Nebraska and the Mountain states to finish their plowing and planting during the present month. In many sections plowing has been so greatly delayed that much corn is being listed to save time. Oats.-The condition of oats is reported generally satisfactory with fairly good growth and larger acreage, although Oklahoma reports the stand thin but stooling rapidly since the recent rains. Barley is making satisfactory growth, and generally doing well, according to reports, while the condition of rye ~ generally good. Cotton.-In Oklahoma planting has begun, and some replanting has been necessary in the southastern portion. Potatoes were reported in Oklahoma a making rapid growth, and a fairly large acreage was planted in the other stat of the district, but r ports on the conditi n at th beginning of May wer incomplet c. Hay.-Alfalfa and hay crops are very backward in the central and northern sections of the district, but the first week in May saw a decided improvement. The plants were in good condition for satisfactory progress. Sugar Beets.-Reports from the sugar beet sections indicate that this year's acreage will be practically the same as last yea1·'s. Colorado and Wyoming districts report a probable slight reduction in the acreage, while some increase is reported from Nebraska, with Kansas about the same as in 1919. Last year 256,000 acres of sugar beets were harvested in this di trict. The planting this year was slightly delayed by the backward ea on. Colorado districts reporting 25% planted by May 1. Fruit.-Reports in this district indicate that the frost damage was not as bad as was feared. Some damage to its pecan crop due to the April freeze is reported in Oklahoma. Colorado reports indicate some winter killing of stone fruit. Conditions early in May were generally more favorable than expected by the long season of cool and cloudy weather. The prospects for an apple crop ·n Kansas are brighter now than they were soon after the Easter storm, according to reports received by the horticulture department at the State Agricultural College. The crop, however, will be generally light in the Missouri Valley section. Harvest Labor.-The labor departments of the states of this district are already busy with their preparations to supply men for harvesting this year's wheat crop. Arrangements have been made in many counties to distribute the men through the county farm agents, or county officials. Seventy cents an hour and board will be the wag for harvest hands in the Kansas wheat belt agreed upon at a meeti g of the wheat growers and the Kansas Harvest Labor Association. The Kansas harve t wage last year started at fifty cents an hour and was THE MONTHLY BULLETIN raised in some instances to sixty cents an hour. The farm labor supply at this time is reported about 90% as compared with the supply last year in Kansas, Nebraska and Oklahoma, and about 75% normal. Grain and Flour.-Grain receipts slumped heavily at the markets of this district in April as a result of the transportation troubles incident to the switchmen's strike and car shortage, and to unfavorable weather conditions. At Kansas City a total of 2,874:, cars of grain were received compared with 6,875 cars in March and 4,010 cars in April, 1919. Arrivals of wheat picked up in the latter part and the month closed with a total of 2,235,000 bushels received as against 1,198,800 bushels in April of last year. Corn receipts for the month were 550,000 bushels against 1,850,000 bushels in April, 1919, while oats received, totaled only 188,700 bushels against 1,482,400 bushe13 the same month last year. The Kansas City figures fairly indicate the movement of grain at the other market and terminal points. Grain Reserves. - Estimates as to fa.rm re ·crvcs indicate that ransas had 35,500,000 bushels of wheat in mtlls, elc ators antl on farms on April 17 as ag-ainst 11,000,000 lmshels at the same <late one year ago. lt was estimated that the Kansas mills would use 10,000,000 bushels in May and June, leaving 25,000,000 to be marketed. The quantity of wheat at the mill~, elevators and on the farms in the other states of this district is estimated to be proportionately large, or about three times the reserves stock held one year ago. Wheat in elevators May 1 at these cities were: Kansas City 9,148,000 bushels, Omaha 1,512,000 bushels, St. Joseph 408,000 bushels, Lincoln 171,000 bushels. Prices.-\Vheat prices were firm during the montl1 of April, No. 1 hard wheat advancing from $2.61@2.78 on April 1 to 2.88@3.01 on April 30, the latter figure being 6c higher than the top price for April, 1919. Corn prices were steady and strong during the month with a tendency to advance. No. 2 mixed corn sold at Missouri river points at $1.62 on April 1 and $1.72 @l.74 on April 30. Oats were steady with a range of 71c at the beginning of the month to 74¼c on the 21st and 71¼c at the close. ~ The unfavorable tone of private reports on the progress crops, together with a sustained export demand for wheat, and to some extent for rye and barley, were strengthening factors in the grain market through April and early May. Milling.-Flour manufacturing at the milling centers of this district were hampered in April by tran portation interruptions resulting from congested yards and unmoved freight. A loss of 30% of milJing activity in this district is to be seen in the Northwestern Miller's weekly reports which are here combined for the four-week period ending May 1, compared with the output for the corresponding period last year:. 1920 Kansas City . . ................... 163,800 Omaha . • . . . • . . . . . . . . . . . . . . . . . . . . 33,925 88 Outside Mills .................. 811,256 1919 274,400 73,280 1,078,650 Total barrels--4 weeks ........ 998,981 1,426,330 Although there has been a continued demand for 5 flour, most of the sales were in small lots with request for early shipment. A tendency to proceed with caution was noted, due largely to uncertainty as to what the wheat market will do in the few weeks preceding and following the termination of federal control, which control now seems likely to be extended. Competition for wheat during the month was keen and the resultant high prices caused a further advance of 25 cents in hard wheat flour, placing the flour market on a basis of $14.70 a barrel for top quality. Kansas City flour quotations May 1 were: Patents, $14@14.60; Straights, $13.10@13.40; Clear , $8.50@. 11.90. LIVE STOCK. It was too cool on the high prairies and in the !nountain regions in April for the best growth and 111 consequence pastures were somewhat backward at the beginning of May. Feeding of live stock was necessary in many sections, particularly on the western mountain ranges in Colorado and Wyominrr where d ·cp . now overed the ground. ~rherc wa. · much ~;ufkring among animals and omc 1 sse · in tho c sections. 'L'hc calf crop was reported from Wyoming as fair t poor, with losses of calves and also lamb . Losses of lambs are reported from New Mexico as a result of the blizzard in the latter part of April. 'I'he weather has been unfavorable for early litters of pigs and indications point to a reduced pig crop. The increasing difficulty of moving cattle and hog:; to market is the cause of much complaint and is proving costly to growers and feeders. At the Markets.-The movement of live stock to the markets of the Tenth Federal Reserve District was heavily broken into during a part of April by railroad troubles, due to strikes and embargoes. A total of 25,785 cars of live stock was received at the six markets during the month, which is 5,147 cars less than were received in March of this year and 3,110 cars less than were received in April of last year. Compared with the record for April, 1919, this year's April receipts were 18.4% less on cattle, 11.5% less on calves, 16.5% less on hogs, and a gain of 4.5% on sheep and 27.7% on horses and mules. Prices.-Up to the time of the switchmen's strike in April cattle prices were gradually seeking lower levels than at the close of March, but during the strike there were wide fluctuations and the break were heavy both ways. A liberal supply of pulp fed animals were on the markets, but the supply ot toppy corn finished native steers was limited. The best steers sold around $14@14.75, antl pulpers made the record price of $14.50. Mixed steers and heifers at the end of the month were around $13.50@14.50 and best cows around $11@ 12. Although receipts of hogs were the lightest in many years, trading was very uneven. Prices in the first week equalled the high point of the year while in the following week they were the lowest of the present year. Final prices for April were around $13.85@ 14.60, or S0c to $1.50 lower than at the close of March and $5.75 to $6 lower than a year previous. ·with the supply of sheep limited for the greate;:;t part of the month there was scarcely enough life to the market to test values. But after the strike situa- THE MONTHLY BULLETIN 6 tion was improved the market showed activity and western fed lambs sold at $20.85. A moderate supply of shorn lambs sold as high as $18.50 and choice feeding lambs sold up to $17.75. Packing Operations.-Packers were the principal traders at the live stock markets during this month, but their operations were restricted by the supply of live stock. The packers' purchases in April at the six markets, compared with those of April last year, were 11.7% less on cattle, 15.8% more on calves, 37% less on hogs and 23 % less on sheep. Kansas City • • . . . . . Omaha •.........• Denver. . . . . . . . • . • . St. Joseph • . . .... Oklahoma City .... Wichita . . . . . . . . . . Cattle 55,510 72,359 9,693 25,104 19,149 6,977 Total April, 1920 .•. 188,792 Total April, 1919 ... 210,801 Calves 12,877 2,102 1,566 4,369 2,170 23,083 19,460 Hogs 120,812 201,266 30,658 106,405 28,118 85,092 Sheep .72,800 106,099 27,573 61,630 522,378 716,691 268,201 329,872 99 PETROLEUM. The output of crude oil from the fields of ~ans3:s and Oklahoma in the 30-day month of Apnl, estimated from reports, was 10,497,750 barrels or 349,900 barrels daily. This compares with an estimated production in the 31 day month of March of 10,491,640 barrels, or 338,440 barrels daily, and 8,991,750 barrels or 299,725 barrels daily in April, 1919. The repo_rts since the beginning of 1920 show a larger production each day, week and month than was recorded _for the same time last year. The reports from Wyoming indicate the output was slightly under 2,000,000 barrels for the month. Developments.-April reports of field operations showed 75 more wells were completed than in March, but new production from the completions was 8,193 barrels daily below the March daily flow. However, there were 141 more rigs and wells drilling at the end of April than at the end of March which increased activity in May developments. The summary follows: Completed WelJs Kansas ........... 242 Oklahoma . . .. .. . . . . 747 Wyoming.. . ........ 12 April, 1920 ........• 1,001 March, 1920 . . . . . . . . . . 926 April, 1919 . • , .. .. .... 1,020 Brls. Daily Rigs and New Prod'n Wells Drilling 10,434 498 2,llS 55,845 1,085 533 67,364 75,557 43,628 8,149 8,008 2,543 Prices-Kansas and Oklahoma crude oil was unchanged May 14 at $2.75 per barrel for Healdton and $3.50 for all other grades. In Wyoming, Salt Creek and Pilot Butte advanced from $2 per barrel to $2.75 per barrel. All other grades remained the same in price as quoted one month ago. MINING. Metal mining conditions in Colorado are, on the whole, showing a slight improvement, although the storms and bad roads incident to the season are interfering to some extent with the production. A good many new operations, mostly small ones, are reported which makes the outlook for increased production favorable. This does not, however, apply to the districts where gold predominates as under present conditions gold mining is not remunerative. Some of the camps report a shortage of labor. There has been no surplus of mine labor since the war and the new operations mentioned above are doubtless causing the present shortage. Lead and Zinc.-The month of April showed a reaction in zinc ore prices on the Joplin and a general disorganization of the industry in Missouri, Kansas and Oklahoma, due to a number of factors which affected production and shipments.. However, the amount of ores loaded into cars reached a very large figure, averaging 13,325 tons of zinc blende per week, but much of this at the end of the month was still in the cars on sidings in the zinc mining district or ·scattered between the district and the various smelting centers. Calamine ores registered 127 tons per week, with a small outlook of any increase possible for some time to come. Prices for zinc blende ores ranged from $52.50 down to $42.50 base, thus making a decline of $10.00 per ton in the maximum and minimum prices of the month. The average price for zinc blende ores for the month was $48.23. Prices for calamine ranged from $35.00 to $40.00, with an average price of $38.44 for the month. The month also marked the close of the four month period in which the shipments aggregated 210,312 tons of blende ores, which is an increase of 60,153 tons over the same period of 1919. Calamine ores on the other hand aggregated 2,983 tons, or a decrease of 2,143 tons over the same period of 1919. The difference i'1 the average prices for the same period for blende or~s was $10.37 in favor of 1920. Strange to say the difference between the calamine prices of 1919 and 1920 was $10.33. Estimated surplus stocks unsold in the bins of the ore producers is 28,000 tons against 17,000 tons for the same period of 1919. Lead ores show a total shipmeht of 10,098 tons during the month, or an average of 2,524 tons per week. The average price paid for 80% grades was $107.50 to $110.00, or an average for all grades of 108.82, ~ne of the highest averages for many mont~s. Even yv1th this high price for lead ores, and a considerable stimulation in output there is not yet sufficient lead ore to meet the demands in th.is district. The railway switchinen's strike and its accompanying complications have seriously affected the industt:y in that it has tied up a very large amount of ore m transportation between the district and the smelting points. For some time the buyers took the ore as usual, but finding it impossible to get the ores shipped, discontinued buying but did load all the cars that the_Y could obtain with the ores previously purchased. This is the reason for the heavy shipments reported thi~ month, although the ores have not yet reached their destination. The railway strike also affected incoming supplies, and many thin~s requ~red in. minin_g operations are out of hand entirely or m transit. This is causing considerable difficulty among mine operators to keep their plants going. Another complication affecting the district was the coal strike in Kansas which affects practically the entire coal consumption of the zinc and lead mining district of Missouri, Kansas and Oklahoma, and when it is cut off simul- 7 THE MONTHLY BULLETIN taneously with a railway strike makes it impossible to secure coal from other sources, and this has been a serious, handicap in some instances where coal is depended upon for fuel and power. In spite of these handicaps, however, productio'l has been well maintained, partly because of the number of small operators who are entering the field with the opening up of the spring months. Labor conditions continue to be difficult for operators. There is not a sufficient supply of shovelers nor can they be obtained. Numerous efforts are being made for the introduction of mechanical shoveling machines, with some show of success and there is a likelihood of further in stallations td meet thi-, need. The general advance in the wage scales for all surface labor from the common laborer to all the trades has made it difficult to keep men in the mining in~ust~y, an industry which has previously alway'E paid higher wages than any other trade. Owing to the fact that the zinc industry is selling its products on a b!1-si_s ~qual ~n<l in some cases below prr-war levels, 1t 1s impossible to advance the wage scale in accordance with other trades, and the shortage of labor is, therefore, being aggravated month by month. Coat-Operations in April at the bituminous coal mines in this dis~rict were. conducted at an average of 65.7% of capacity, accordrng- to the reports received up to April 24. This is 9.5% below the activity in the previous month of March. The capacitv of operation of the mines in April was: Colorado 78.2% Kan~as 44.8%, Missouri 70.4%, Oklahoma 69%. F~llowmg are the reported percentages of loss of operation due . to various causes in the coal mining states re-2 portmg: Colo. Kans. Transportation Disability . . . ... 18.11% 1.6% Labor shortage ................ 0.9% 4.6% Strikes . . . . . . . . . . . . . . . . . . . . . . . 38 2% Mjne djsability . . . . . . . . . . . . . . . 1.8% 9.5% No market .................... 4.1% 1.0% Mo. Okla. 4.3% 7.4% 5 4% 1.0% 6.8% 0.8% 9.2% 4.0% 3.3% 18.2% Total loss .................... 20.3% 54.9% 29.0% 30.7% Demand for all grades of coal has been strong in all markets as a result of continued curtailment of ~ro.duction a1;d .transportation disability. With the hftmg of freight embargoes and an anticipated improvement of the labor situation at the mines increased production is looked for during the year. 'But with exports absorbing an enormous tonnaO'e the restricted coal supply in western markets is e~pected to continue and with no reduction in price in sight. BUILDING. Permits were issued in seventeen cities of the Tenth Federal Reserve District in the month of April for buildings to cost $8,530,585. While the number of permits issued was 35 less than a year ago, \.he cost of the 2,064 buildings permitted in April, 1920, was $3,780,561 or 79.6% more than the cost of 2 100 buil<lings permitted in April, 1919. The reports of the building departments of the seventeen cities show tl,e number of permits and estimated cost of building compared with those of April, 1919, with the percent of loss or gain: Est. Cost Pct. No. Permits 1919 1920 1919 1920 507 $3,097,450 $726,225 Kansas City, Mo.. . 381 Omaha, Neb. . . . . . 164 206 1,519,280 512,715 285 1,107,975 652,950 Tulsa, Okla. . . . . . . 242 129 653,195 331,425 Okla. City. Okla.. . . 181 312 605,800 532,650 Denver, Colo. . • . . . 349 374,500 334,700 Okmulgee, Okla. . . • 106 102 114 254,311 201,445 Wichita, Kans. . . • • 143 63 175,925 91,877 Kansas City, Kans.. 69 33 150,575 45,449 Colo. Springs, Colo.. 95 9 141,740 30,880 Cheyenne, Wyo. . . . 62 79 127,915 149,665 Lincoln, Neb. . . . . . 69 43 109,655 642,320 Topeka, Kans. . . . . . 65 27 83,080 51,460 Muskogee, Okla. . . . 33 74 66,885 117,325 St. Joseph, Mo.. . . . 43 83 42,499 67,183 Pueblo, Colo. . . . . . . 65 30 125,000 258,755 Joplin, Mo. . . . . . . . . 14 3 7,000 6,000 Leavenworth, Kans. 3 Total ............. 2,064 2,099 $8,530,586 $4,763,024 Change +326.5 +193.3 69.6 97.1 + 13.7 + 11.8 + 26.2 + 91.4 +231.3 +359.0 + + - 14.5 + - 82.9 61.2 42.9 36.6 51.6 16.7 + + 79.6 A more detailed statement of building reports for the seventeen cities in the first four months of 1920, as compared with the r cord for the same period in 1919, is shown in this Monthly Bulletin. The figures for the first four months of 1920 reflect an increase over the same months in 1919 of 160.5% in the e timated cost of new buildings, an increase of 128.3% in the estimated cost of additions and repairs and an increase of 176.9% in the total estimated cost of all building contemplated by the permits. This April showing was made under increased labor difficulties and shortage of materials and the highest prices of record for labor and materials. The figures on 1920 values seem enormous as compared with prewar records, but when it is considered that building costs are easily twice as high as in the years 1914 to 1918, the volume of building for the cities of the district is really under normal and is far below what it would be were building costs and conditions on a more consistent basis. LABOR. While the labor situation at this date in May shows indications of a quieting down since the railroad strike, the situation is far from satisfactory, due to a shortage of labor in many lines of employment, and numerous new wage demands, with an unusually large number of local strikes. Employers generally have shown a willingness to accede to reasonable demands, in view of the high cost of living; though in many cases workmen are beginning to recognize that decreased output of food and commodities tends to further aggravate the situation and demands are reported perceptibly less than a month or six weeks ago. New demands of the building trades have in mo:;t instances been granted in this district. Strikes have resulted in some cities where these demands were refused, effectually tying up building operations. Intermittent strikes or walkouts of coal miners have been reported but there has been no serious interruptions of operations except at the mines in Kansas where miners struck as a protest against the arrest of Alexander Howatt, their leader, arrested for violation of the Kansas law creating a Court of Industrial Relations. THE MONTHLY BULLETIN 8 WINTER WHEAT IN THE TENTH FEDERAL RESERVE DISTRICT FOR 1920 Colorado ................... . Kansas .................... . *Missouri (19 counties) ....... . Nebraska .................. . *New Mexico (10 counties) ... . Oklahoma .•................ Wyoming ...............•.. Acreage for 1920 978,000 7,725,000 470,000 2,846,000 75,000 2,811,000 70,000 Harvest 1919 1,064,000 11,594,000 760.000 3,716.000 57,000 3,760.000 84,000 21,035,000 Total District . . .............. 14,975,000 *Estimated. Percent Condition Estimated Bushels May 1 April 1 Year Ago 1920 1919 75 100 11,736,000 11,917,000 80 73 101 92,082,000 150,722,000 70 108 3,690,000 10,260,000 97 88 84 45,585,000 54,997,000 90 96 1,500,000 1,153,000 77 72 100 27,000.000 52,640,000 92 97 95 840,000 1,008,000 182,433,000 282,()97,000 RECEIPTS OF LIVE STOCK IN APRIL, 1920 Cattle Kansas City ................... 85,535 Omaha ........................ 131,165 Denver ........................ 27,669 St. Joseph .................... 46,154 Oklahoma City . . . . . . . . . . . . . . . . 29,086 Wichita ....................... 28,151 Calves 12,187 5,174 2,503 4,802 2,958 Total April, 1920 .. •. ............ 347.760 Total March, 1920 ............... 407,386 Total April, 1919 ................ 426,050 27.624 37,616 31,242 Hogs 156,911 304,466 32,774 168,884 33,016 36,703 Sheep 118,808 144,473 196,830 74,576 732,754 951,384 877,791 11,824 Horses & Mules 2,962 1,773 1,511 2,869 343 1,244 Cars 6,030 10,184 2,307 4,487 1,410 1,858 546,343 463,695 522,427 10,702 19,770 8,378 25.785 30,932 28,895 132 BUILDING OPERATIONS IN 17 CITIES, FIRST FOUR MONTHS OF 1920. New Oonstruction Permits Value January . . . . . . . . . . . . . . . . . . . . 676 $ 7,806,982 February . ., . . . . . . . . . . . . . . . . . . 884 5,916,738 March . . . .................... 1,056 6,995,308 April . . . . . . . . . . . . . . . . . . . . . . . . 767 6,973,647 Repairs and Alterations Pormtts Value All Building Perm!ts Value 509 870 1,209 1,297 $ 984,973 1,234,998 1,725.161 1,556,938 1,185 1,754 2,265 2,064 $ 8,791.956 7,151.736 8,720.469 8,530,385 4 Months, 1920 .........•..... 3,383 Same in 1919 ........•........ 2,305 $27,692,675 10,629,518 3,885 3,089 $5,602,070 2,409,585 7,268 5,395 $33.194 545 11.991,113 Increase for 1920 ............. 1,078 $17,063,157 796 $3,092,485 1,873 $21,203,432 Statement of Condition of FEDERAL RESERVE BANK OF KANSAS CITY lneludln g Branches RESOURCES LIABILITIES At Close of Business May 7, 1920 May 14, 1920 Gold Coin and Certificates ...... $ Gold Settlement Fund F. R. Board ................... . Gold with F. R. Agent ......... . Gold Redemption Fund ....... . Gold with Foreign Agents ..... . Legal Tender Notes, Silver, etc. Bills Discounted: Secured by Govt. War Obligations ............... . All other ................ . Bills Bought in Open Market .. . U. S. Govt. Bonds ........... .. . U. S. Cert. of Indebtedness .... . Bank Premises . . . ........... . Uncollected Items and Other Deductions from Gross Deposits ................... . 5% Redemption Fund Against F. R. Bank Notes ......... . All Other Resources .......... . 598,307.50 $ 588,567.50 29,906,160.17 37,602,680.00 3,975,852.20 5,413,445.28 1,238,476.35 26,678,947.13 36,646,220.00 4,484,912.20 5,413,445.28 1,275,340.80 28,243,338.14 82,074,893.64 361,346.74 8,867,750.00 13,066,000.00 527,345.11 38,680,499.70 73,436,952.23 361,346.74 8,867,900.00 13,074,000.00 527,345.11 62,999,678.12 67,166,314.70 995,590.00 286,584.59 995,590.00 310,153.76 Total Resources ........ $276,157,447.84 $278,507,535.15 At Close of Business May 7, 1920 May 14, 1920 Capital Paid In ................ $ Surplus . . . . . . . . . . . . . . . . . . . . . . Government Deposits . . . . . . . . . Due to Members' Reserve Acct.. Other Deposits . . . . . . . . . . . . . . . Deferred Availability Items. . . . F. R. Notes in Actual circulation . . . . . . . . . . . . . . . . . . . . F. R. Bank Notes in Actual circulation . . . . . . . . . . . . . . . . . . All Other Liabilities . . . . . . . . . . 4,218.400.00 $ 4.287 .550.00 6,116.033.36 6,116,033.36 920.508.78 1.550.739.40 87,630,533.13 84 613.770.07 3,608.293.95 3 656.521.74 56,723,179.07 61,822,051.97 98,702,765.00 98,375,215.00 15,418.000.00 2,819,734.55 15,234.600.00 2,851,053.61 Total Liabilities ....... $276,157,447.84 $278,507,535.15 OTHER TOTALS Total Gold Reserves .......... $ 77.496,445.15 $ 73 812.092.11 Total Earning Assets .......... 132,613,328.52 134,420.698.67 Total Gross Deposits . . . . . . . . . . 148,882,514.93 151,643,083.18 Contingent Liability as Endorser on Bills Rediscounted with other F. R. Banks... . . . . . . . 15,000,000.00 7,000,000.00 Ratio of Total RMervea to Net Deposit and F. R. Notes Liabilities Combined . . . . . . 42.6% 41.0% Ratio of Gold Reserve to F. R. Notes in Actual Circulation After Setting Aside 35 % Against Net Deposit Liabilities. . . . . . . . . . .. • . . . . . . . . . 48.0% 44.9%, CLEARINGS Total Clearings for Week ..... .. $221,366,185.71 $230 535.899. 71 Total Number of Items Handled 994,383 1,081,736
@FedFRASER