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THE MON HLY REVIEW Covering Conditions in the Tenth Federal 'R..yerve Vi.rtrict Federal Reserve Bank of Kansas City M. L. McCLURE, Chairman Board of Directors and Federal Reserve Agent Vol. B IO KANsAs C1TY, C. K. Mo., NovEMBER USI ESS in the Tenth Federal Reserve District moved steadily forward through the third quarter and into the final quarter of 1925 with activity in the major lines at the high level of the year and considerably above that for the corresponding season in 1924. Measured by bank debits, or payments by check on individual accounts in banks, the volume of transactions was larger in September, larger in the third quarter, and larger in the three quarters of this year than in the corresponding month, three months and nine months of last year. Clearings of checks and other cash items t hrough the F ed. eral Reserve Bank at Kansas City and branches at Omaha, Denver and Oklahoma City showed a similar trend, both in the number of items handled and in the money value. Statistical records and reports covering the leading lines of trade gave evidence of an increased volume of merchandise distributed, and of larger sales by retail to the consumers. Trade conditions in this district were generally satisfactory. Business failures were fewer and the amount of liabilities was smaller than in anv other month of the vear. Production of crude oil in Septemher was slightly below that BOARDMAN dJsistant Federal Reserve Agent and Secretary 1, 1925 No. II for the same month last year, but for the nine months of this year it was still ahead of the corresponding period last year. In the zinc and lead fields activity was the highest of record during September, and the value of ores sold and shipped in the first forty weeks of this year was greater than the value of ores sold and shipped during the entire year of 1924. Activity at the metal mines in Colorado was at the highest rate for sev~ral years, and the reports indicated increases in production of gold, silver, lead, zinc and copper. Improvement in demand for soft coal caused increased operation at the mines of this district, and September production was the largest for any month of the year except January. Production of salt was exceeding that of last year by a small percentage and production of Portland cement was larger than a year ago. Meat packing operations at the principal centers were larger in September than in August, though on account of smaller supplies of live stock at the markets at this time last year there was a decrease as compared with September 1924. Further reduction in the market supply of wheat during September was reported at the leading western markets. How. HIGH POINTS I THE STATISTICAL RECORD OF THE TE TH FEDERAL RESERVE DISTRICT September and ine Months of 1925 Compared wi th the Corresponding Month and Nine Months of 1924 Per Cent Per Cent Change Nine Mos., 1924 Change Nine Mos., 1925 Sept. 19'!5 Sept. 1924 I.I '/,10,220,918,000 Bank debits, 28 cities........ -----i1,185,no,ooo 13.0 '/,1,172,247,000 $II,5S2,9 25,000 Clearings, Federal Reserve Bank ........................... _ _ _ _ _ _ 'f, 919,546,999 16.1 '/, 886,067,587 3.8 $ 7,984,720,275 $ 6,877,236,535 11.8 Items handled.............................. 5,563,856 5,388,021 44,635,297 49,9 14,897 3.3 12.8 1,114 -14.5 78 Business failures·----····------·· ········-····••·- - - - 88 953 18,548,080 12,310,229 -36.2 -33.6 Liabilities .. -........ - - - - - - ...$ 853,793 '$ 1,339,489 8.I Building permits, 18 cities........................................... 2,969 28,089 -15.6 3,516 25,974 Estimated value.................. _ _ _ _ _ _ _ _ _ _ _ 'f, u,807,101 'J.7.6 76,862,454 '/, 10,233,814 15.4 .98,090,899 1 9,759,000 20,967,000 -5.8 -15.6 3,050,000 Coal production, tons.·-··------ - ... ·-··························-·· 2,575,000 I.:2 181,201,500 Crude oil production, barrels.... 20,788,000 21,401,000 -2.9 179,073,000 -1.8 16,014,669 -22.4 16,308,358 2,46o,136 Flour production, barrels...·----············--······························· 1,910,227 Grain receipts, 5 markets: 89,118,450 148,525,850 26,312,300 9,301,700 Wheat, bushels.·-··-··-··· · - - - - - - - - - - - - 51,264,100 3,884,100 2,124,950 34,7o3,95o Corn, bushels--·····-········-··-······ ···· ... ------Oats, bushels .......... _ _ _ _ _ .................................... 19,074,700 27,385,300 4,042,900 3,765,800 Live Stock receipts, 6 markets: -2.8 4,128,966 4,010,478 801,498 Cattle................ - - - - - - 583,325 686,242 106,221 7u,37o 159,506 3.7 Calves .......... -··········-···········································- - - -19.1 8,784,090 665,646 7, 109,496 Hogs ................ ------················ ......................... . 59o,783 0.5 5,374,326 1,193,538 983,396 5,4°3,5 13 Sheep.... - - - - - - - - - - - - - - 86,130 15,486 16,931 89,309 3.7 Horses and Mules.........· - - - - - - - - - - - Packers' purchases, 6 centers: 2,127,816 -8.7 300,501 Cattle...........· - · · · · · · · · · · - - - - - - - - - Calves...... _.. _ _ _ _ _ _ _ _ _ _ _ ............. _.............. 100,072 494,568 -25.7 74,305 6,627,627 5,242,104 -19.2 382,518 473,544 Hogs ................ - - - - - - - - - - - - - - - 2,886,339 -18.9 2,876,779 406,916 330,183 Sheep.....- · · · · · · · · · - - - - - - - - - - - - - Ore shipments, tri-state district: Zinc, tons ............ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 72,918 53,663 35.9 608,955 538,851 Zinc, v a l u e . · - · · · · · · · · - - - - - - - - - - - - - $ 3,974,181 'f, 2,267,879 75.2 '$ 31,710,645 '$ "22,196,877 Lead, t o n s _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 9,559 7,'287 31.3 95,014 69,53o Lead, value.....·-····································· · - - - -··············$ 1,xn,445 $ 79'!,330 40.3 $ 10,981,630 $ 7,088,159 NOTE: Figures on Bank Debits for September cover four weeks, and for nine months thirty-nine weeks, in both years. Zinc and lead ore figures are for four weeks and forty weeks. This Copy Released For Publication In Morning Newspaper October 28 THE 2 MONTHLy R EVTEW ever, the output of flour at Southwestern reporting mills was large:r than in the previous month, but smaller than that of a year ngo. The late official crop reports were generally more favorable for farm production in this district than was anticipated, considering the unfavorable conditions of the crop year-scant rainfall at times when needed and abnormally high or low temperatures at inopportune times. The corn crop was estimated at 11.7 per cent less than that for 1924. The winter wheat crop, as previously mentioned in the Monthly Review, was but little more than one-half the size of the bumper crop of last~ year, though there was about the same yield of spring wheat. Decreases in several of the other crops were forecast by the October reports, and the yield of cotton reported was the largest this district ever produced. The situation with respect to the live stock industry was encouraging. There was a moderately heavy market movement of c;attle and sheep during September, but a lighter movement of hogs. Prices of live stock were on higher levels than a year ago. Indications were that feeding operations would be slightly less than in the previous fall and winter. Ranges were greatly improved and more interest was centered in range cattle and sheep than had been ohserved for a long time. Building operations during September were the largest for any previous September of record, in the amount of money represented in construction costs in cities of this district reporting. Nine months total building expenditures in eighteen cities was $98,090,899, as compared with . $76,862.,454 for the corresponding nine months of last year, and $100,472,216 for the entire year of r924. Banking and Credit Demand for credit for commercial and agricultural purposes at member banks in this district continued fairly heavy during September, though the volume of loans outstanding at the close of the month was slightly below the high mark of July and August. Investments continued the steady increase of the past several months and on September 30 were at a new high mark. Deposits fell off slightly during September, due to larger business and investment activity. Rates were firm but unchanged. MEMBER BANKS' EXHIBIT: The combined statements of seventy reporting member banks in this district showed I. ~ 3• 4- 5• 6. 7• 8. 9. PRINCIPAL RESOURCE AND LIABILITY ITEMS OF MEMBER BANKS IN SELECTED CITIES Sept. 30, 1925 Oct. I, 1924 70 Banks 72 Banks Loans and Discounts (including rediscounts): (a) Secured by U. S. Govt. obligations ___ . ...t, 3,666,000 t, 6,364,000 (b) Secured by stocks and bonds, other than U. S. Bonds............ . .. ··· - - - 108,439,000 81,783,000 (c) All other.......· - - - - -···· ............ 324,313,000 319,482,000 Investments: 11,404,000 (a) U. S. pre-war bonds .....· - · · - - - - 8,998,000 (b) U. S. Liberty bonds................................. . 55,240,000 39,546,ooo (c) U. S. Treasury bonds ............................... . 16,173,000 2,093,000 (d) U. S. Victory notes and Treasury notes.... 16,048,000 22,041,000 (e) U. S. Certificates of Indebtedness .......... 3,800,000 7,282,000 (f) Other bonds, Stocks and securities.......... 80,412,000 67,343,000 Total loans and discounts, and investments .... 617,089,000 557,338,000 Reserve balances with F. R. Bank.................. 48,584,000 53,523,000 13,666,000 12,451,000 Cash in vault ...........·-········----Net demand deposits on which reserve is computed .............................. _ _ _ _ __ 503,720,000 458,630,000 133,966,000 Time deposits .......... - - - -···············-······ 138,028,000 Government deposits ...................................... z,174,000 3,903,000 Bills payable and rediscounts with F. R. Bank secured by: (a) U. S. Govt. obligations _ _ __ 628,000 158,000 488,000 2,540,000 (b) All other...... _ ... -·-··-··-····---- TOTAL (ltcms-3 to 9 inclusive)--··- ·-·----1I,JJl,368,ooo t,1,215,518,000 $436,418,000 of loans and discounts, including rediscounts, at the close of business September 30, a decrease of $ I 5,955 ,ooo or 3.5 per cent in four weeks, but $28,789,000 or 7.1 per cent larger than at the corresponding reporting date in 1924. The total of investments on September 30 stood at $180,671,000, which was $2,971,000 or 1.7 per cent above that for September 2 and $30,962,000 or 20.7 per cent above that for October 1, 1924. The combined figure for deposits was $643,922,000 as of September 30, indicating a decrease in four weeks of $2,691,000 or 0.4 per cent, and an increase over a year ago of $47,423,000 or 8 per cent. FEDERAL RESERVE BANK OPERATIONS: Borrowings by member banks at the Federal Reserve Bank at Kansas City and branches were at the high point of the year on September 23 with their rediscounts amounting to $12,150,784. This figure fell to $8,750,635 by September 30, which was $592,515, or 7.2 per cent above that of October 1, 1924. Subsequent weekly reports during Octoher showed some increase in the total of bills rediscounted for member banks. Purchases of bankers' acceptances for the marketing of commodities amou nted to $26,r35,459 on September jo. This was the largest amount of purchased bills held that had been previously reported during the year, and in fact it was the largest total of record to that time, though subsequent reports in October showed further increases. The amount of government securities held by the Federal Rese.r:ve Bank of Kansas City was $32,991,950 on the last day of September against $34,350,500 held on October 1, 1924. The total of bills and securities held on September 30 was $68,386,044 compared with $46,935,341 on October 1, 1924. Operations of the Federal Reserve Bank of Kansas City and branches are shown in the following: Sept. 30, 1925 Gold reserves.·--····- ····--·-··f, 85,755,150 B:lls discounte., .._____ 8,750,635 Bills purchased.......................... 26,135,459 U. S. Government securities.... 32,991,950 Total bills and securities .... ___ 68,386,044 Gross deposits.........·-······......... 90,576,384 F. R. Notes in circulation........ 66,543,840 Total resources...· - · · - - - 206,832,368 Sept. 2 1925 f, 90,343,431 8,974,469 17,995,154 32,324,450 59,594,073 88,180,685 64,019,640 199,370,431 Oct. x, 1924 f,102,731,120 8,158,120 4,426,721 34,350,500 46,935,341 83,133,908 65,592,655 197,924,499 SAVINGS: The reports of a selected list of banks in cities of this district showed a small decrease in the amount of savings deposits and in the number of accounts on October 1 as compared with the amount reported on September I. The October 1 savings totals were larger than those for October 1, last year, in both deposits and accounts. The deposits follow: Banks Denver, Colo,_ _ _ _ ·- 7 Kansas City, Kans.·-··········· 4 Kansas City, Mo... - .. -·······IO Lincoln, Nebr ...................... 3 Oklahoma City, Okla.·--·-·· 7 Omaha, Nebr.................... 5 St. Joseph, Mo..................... 6 Tulsa, Okla ..............·-········- 6 Wichita., Kans ..........·-·· ·-··· 5 Other Cities.... .. _ _ _ _ 3 Total...·-··-·· _ _ _ _ _ 56 Oct. I, 1925 t, 55,507,35 2 2,618,331 14,949,279 2,880,257 8,21 3,549 7,160,889 8,831,245 9,758·,548 3,01 5,494 1,022,302 f,113,957,246 Sept. x, 1925 f, 55,226,195 2,650,090 14,883,712 2,880,190 9,529,427 7,095,826 8,.986,082 9,049,016 2,75 1,553 1 ,o57,5o5 Oct. 1, 1924 f, 55,874,323 2,448,463 13,8o3,443 2,710,16o 7,188,757 7,02 7,3 1 3 9,272,283 7, 12 8,735 1,574,209 1 , 037,449 $114,109,596 $108,065,135 RESERVE BANK CLEARINGS: During September the transit forces at the Federal Reserve Bank of Kansas City and branches at Omaha, Denver and Oklahoma City handled 5,563,856 cash items for amounts totaling $919,546,999 for 1,040 member and 2,681 non-member banks in the Tenth District. There was an increase for the month over August of 143,807 items and $47,282,194, or 5.4 per cent, in amount. Septem ber1 clearings also exceeded those for September 1924 by 175,835 items and $33,479,412, or 3.8 per cent, in amount. THE MONTHLY REVTEW For the nine months of 1925 Federal Reserve Bank clearings were 49,914,897 items and $7,984,720,275 in amount, an increase over the same nine months of 1924 of 5,279,600 items and $1,107,483,740 or 16.1 per cent in amount. Clearings by months are here shown: January _______ -·-·· February.·--······-······ March.·-··---··--····-· April...... _······· -- ··-_ May .....·-······ -······--·· June...·--·· July.. AugusL---········--September.. ___ ____ ITEMS 1924 1925 ,b 5,448,539 4,726,778 5,160,840 4,561,796 4,986,934 5,896,323 5,633,189 4,977, 178 4,955,341 5,314,313 4,901,641 5,790,129 5,088,030 5,687,559 5,420,049 5,o49,577 5,563,856 5,388,021 Nine months.. _____.-49,914,897 44,635,297 AMOUNT 19'25 1924 i $ 910,542,658 $ 705,079,228 791,057,866 635,879,751 962,476,088 777,722,416 873,511,785 739, 1 35,531 807,058,789 752,469,452 906,894,327 763,388,403 941,366,958 8 19,937,795 872,264,805 797,556,371 886,067,587 9 19,546,999 $7,984,720,175 $6,877,136,53i BA K DEBITS: Payments by check through banks, or bank debits, reported by clearing houses for their members in twenty-nine cities of the Tenth District amounted to $1,189,804,000 for four weeks ending September 30, which included only twenty-three days, the banks closing on Labor Day. On this account there was a decrease of $1 I ,056,000 or 0.9 per cent from the amount reported for the four full weeks ending September 2. The total for September 30 was $12,863,000 or I.I per cent larger than that reported for the corresponding four weeks last year, based on returns from twenty-eight cities. For the first nine months of 1925 bank debits totaled jn,552,925,000 for twenty-eight cities, against $10,220,918,000 for the same period in 1924. The increase for this year's nine months was $1,332,007,000 or 13 per cent. Debits for reporting cities were: Four Weeks Ending Sept. 30, 1925 Atchison, Kansas .. _. _ ____J 5,256 ,000 Bartlesv1lle, Oklahoma ____ 13,019,000 Casper, Wyoming........ ___ 11 ,549,000 6,656,000 Cheyenne, Wyomi ng.. -·-Colorado Springs, Colorado. 14,409,000 Denver, Colorado .... ______ 165,.)()9,000 Enid, Oklahom 12,862,000 Fremont, ebraska_··-··-··3,434,000 Grand Junction, Colo._._ 3,565,ooo Guthrie, Oklahoma_ .. ___ 3,184,000 Hutchinson, Kansas. ___ II,432,000 Independence, Kansas. _ _ 9,443.000 17,338,000 Joplin, Missouri .... -·-···-17,942,000 Kansas City, Kansas..·-·--Kansas City, Missouri. __ 337 ,4 2 I ,000 4,738,ooo Lawrence. Kansas.. ------·· 30,117,000 Lincoln, Nebraska .. -----·McAlester, Oklahoma.... ·-4,694,000 Muskogee, Oklahoma .........• II,515,000 Oklahoma City, Oklahoma .. 74, 2 57,000 Okmulgee, Oklahoma ........ _ 9,381,000 187,642,000 Omaha, Nebraska....... ·--···· Parsons, Kansas 2,739,000 Pittsburg, Kansas __ _____ 5,629,000 Pueblo, Colorado __ ·- ___ 15,670,000 St. Joseph, Missouri__ .. ___ 51,072,000 Topeka, Kansas .. _ ... ·--··-·· 14,585 ,000 102,873,000 Tulsa, Oklahoma.·-··--····-Wichita, Kansas_---··-··4 1,373,000 $ Four Weeks Ending Oct. 1, 1924 5,87'1,000 13,358,000 13,837,000 8,043,000 12,633,000 I 59,997,000 13,213,000 3,183,000 3,517,000 1,676,000 17,386,000 7,949,000 13,465,000 17,343,000 359,947,000 4,265,000 17,263,000 Per Cent Change -10.5 -1.5 -16.5 -17.1 14.1 3.1 -1.7 7.9 1.4 19.0 -34.1 18 8 18.8 3.5 -6.3 II.I 3 for September 1924 of 78 failures and $1,339,489 of liabilities. Business failures in the District in nine months of this year numbered 953 and liabilities amounted to Jn,310,229, against 1,114 failures and $18,548,080 of liabilities in the first nine mon ths of 1924. This comparison shows a decrease of 161 or 14.5 per cent in the number of failures and a dc::crease of $6,237,851 or 33.6 per cent in the amount of liabilities. The September record of failures in the United States, as reported by R. G. Dun & Company by Fecleral Reserve Districts, foilows: NUMBER District First, Boston.·--··----····-··-·· Second, New Yor Third, Philadelphia _______ Fourth, Clevdand .. ______ Fifth, Richmond _________ Sixth, Atlanta .... ______ Seventh, Chicago __ Eighth, St. Louis_ Ninth, Minneapolis .. _____ Tenth, KANSAS CITY _____ Eleventh, Dallas _________ ._ Twelfth, San Francisco _____ 1925 144 1 57 64 131 101 61 101 1914 94 138 73 101 8-4 85 213 71 LIABILITIES 66 88 46 151 78 34 180 1925 $ 7,700,181 6,623,159 928,390 1,439,015 1,33o,536 1,538.988 -4,500,402 1,138,071 4o5.371 853,793 412,370 2,817,043 United States, September __ .:_ 1,465 ~nited States, nine months __ 16,073 1,3o6 15,226 $ 30,687,319 $341,749,821 54 54 ., 1924 1,1 l<j,l41 9,374,964 I,3 15,533 3,25y,688 1,212,869 1,375,317 8,945,494 3,586,174 453,528 1,339,489 58o,455 1,733,5 23 ~ $ 34 296,276 $4JO,HJ,45-♦ Trade WHOLESALE: Combined reports of representative houses in six wholesale lines show that the volume of trade, as expressed by the value of goods sold and shipped, was larger in September than in any preceding month this year and larger than in the month of September, 1924. Considered by separate lines the September sales at wholesale of groceries,- hardware, furniture and drugs were larger and sales of dry goods and millinery smaller than in August. Comparing the September reports with those for September for last year there were increases for the month this year in sales of dry goods, groceries, hardware and drugs, and decrease~ in sales of furniture and millinery. Percentages of increase or decrease are shown in the following table: No, of Stores Dry Goods ..-4 Groceries._ ..6 Hardware ..-.8 Furniture.....7 Drugs·--- ·····9 Millinery __ .. 6 SALES Sept. 1925 Sept. 1925 Compared Compared with with Aug. 1925 Sept. 1924 -4.1 1.0 11.3 3.7 8.4 1.0 14.7 -o.8 5.3 9.8 -10.0 -19.6 OUTSTANDINGS Sept. 30, 1925 Sept. 30, 1925 Compared Compared with with Aug. 31, 1915 Sept. 30, 1924 6.1 7.3 9.6 o.6 5.1 0.9 10.7 10.1 3·3 -o.6 6.9 -12.3 The reports of wholesalers told of substantial improvement during the latter part of September and early October in con9,688,000 18.9- ditions affecting trade as a whole. Wholesalers of dry goods 1.3 73,33 1 ,000 attributed the increase in the volume of their business to more 6,908,000 35.9 seasonable weather and a better demand for goods. Purchases -1.6 190,629,000 by retailers were more general and more frequent, and it was -I.2 1,772,000 13-4 4,962,000 observed that there was a better feeling among merchants and 14,970,000 4.7 more confidence in the prospect for business through the fall -5.0 53,779,000 and winter. The wholesale millinery trade was comparatively 13,780,000 5.8 light during the greater part of the month but showed improve72,205,000 41·5 -6.4 45,272,000 ment at the close. Seasonal demand for groceries was the heaviest of the year, Total four weeks ______ .. _.$ 1,189,804,000 $ 1,171,247,000 I.I and unusually large sales for the month were reported by stores Total thirty-nine weeks.-$11,626,178,000 $10,110,918,000 13.0 at all centers of distribution. This was regarded as indicative Failures of great industrial activity in this district. The wholesale hardware trade, which had been running Business insolvencies in the Tenth District were fewer and iabilities were smaller in September than in any month this through the spring and summer months considerably above that year. The totals reported for the month were 88 failures and for the same months last year, continued at the season's high $853,793 of liabilities. This record compares with that for Aug- level during September and the early part of October. Wholesale furniture dealers reported their September sales ust of 127 failures and $1,610,394 of liabilities, and with that 10.5 THE MONTHLY REVTF.W 4 RETAIL.,TRADE IN SEPTEMBER, TENTH FEDERAL RESERVE DISTRICT (Based.upon.,reports of 34 Department Stores) Kansas Oklahoma City Denver Wichita Omaha City Lincoln 4 3 4 3 3 3 Percentage increase (or decrease) of Net Sales during September, 19z5, over Net Sales during September, 1924_____________ -o.6 6.1 12.1 12.2 1.5 Percenwge increase (or decrease) of Net Sales from January I to Septemuer 30, 1925, over same period last year _________ 3.7 5-7 Percentag increase (or decrease) of Stocks at close of September, 1925, to Stocks at close of August, 1925 .. _ _ _ _ _ _ _ _ _ _ __ 11.3 4.7 4·9 Percentage increase (or decrease) of Stock, at close of September, 1925, to Stocks at close of September, 1924.. ____________ 2.8 5.2 9•4 Percentage of Outstanding Orders at close of September, 1925, to total 6.2 6.o 10.0 purchases in calendar year 1924.. __ -·- - - - - - 8.3 5.0 Percentage of Outstanding Orders at close of August, 1925, to total purchases in calendar year 1924-___________ 7.7 9.0 6.6 9.2 15.6 NOTE: Percentage of collections in September on outstanding accounts August 31, all stores reporting, 44.9%. Collections same month in dollars slightly below those of a year ago. Still, the volume of business for the month was quite large, and trade conditions generally were good. At the end of September orders were coming to wholesale drug houses more freely and there was an apparent tendency on the part of retailers to balance their stocks more evenly. Some quantity lots were offered and accepted but on a keenly competitive basis, which was regarded as favorable to the retailers. Prices w~re still firm with an upward tendency. Stocks were said to be abundant and there was no difficulty in wholesalers obtaining supplies. Deliveries were prompt and wholesalers reported the best service from the East they had ever experienced. The wholesale stationery trade was better than at the same season last year, reports of sales showing an average increase of 2. 5 per cent .. RETAIL: The month of September began with retail trade slowed down in the eastern and southern portions of the district by unfavorable weather conditions, but after the tenth there was a noticeable improvement and by the first of October retail trade was at the peak of the year. The September reports of 34 department stores showed sales for the month were larger than in August and larger than in September oflast year, while cumulative sales for the year to October I were above those for the same period last year. Fifteen stores reported increases and nineteen stores reported decreases in sales in September over a year ago. Reports of single line retail stores showed but slight variation in the trend of sales from those of department stores. COLLECTIONS: Wholesale firms reported collections in September a little better than in August and generally satisfactory. The department store summary showed a higher percentage figure on collections than for August and a shade better than in September 1924. Single line retail stores reported collections about the same as a year ago. A few reports showed weather conditions early in the month were unfavorable and collections for that period were poor to fair. · Implements September is usually a light month for heavy implements, such as t ractors and threshers, but there was reported a fair demand during the month for tractors for fall plowing and seeding. Total sales for the year to September 30 averaged about 40 per cent above those for the same period last year. Sales of all classes of farm implements and machinery, dairy supplies included, were larger than last year to this date. Lumber R eports from 239 retail lumber yards in cities and towns in western Missouri and in Kansas, Nebraska, Oklahoma and Colorado reflected an increase for September, in dollar sales of Other All cities Cities reported 14 34 -5.4 0.9 o.8 6.4 9.9 4.9 10.5 4.5 8.8 7.2 13.7 8.9 last year 44.4%. lumber and other materials carried by these yards, over the month of August and over the month of September last year. Sales of lumber in board feet were larger in September than in Stocks of lumber the previous month or a year ago. in thousands of board feet were smaller at the end of September than at the end of the previous month and the same month last year. Outstandings on their books increased in amount and collections also increased over August this year and September last year. Following is a comparison of September business at the reporting yards with ~hat for August 1925 and September 1924 in percentages of increase or decrease: September, 1925 Compared to August, 1925 5.0 Lumber sales, board feet.·-··-··· · - - - Lumber stocks, board feet, month-end .......·-····-1·2 All material sales, in dollars ............ _ _ _ _ 3.5 Outstandings, month-end........ _ _ _ _ _ _ 4.0 Collections------··----· ... ···-··-··-·····-···-··-·· 4.8 September, 1925 Compared to September, 1924 15.3 -5.4 12.9 6.5 10.2 The lumber movement in the United States for four weeks ending October 3, as reported to the ational Lumber Manufacturers Association by alJ associations is compared with the record for the previous four weeks in the following: Four Weeks End. Oct. 3 (Feet) Lumber cu.______ _ _ _ _ _ 1,112,387,083 Shipments _ _ _ _ _ _ _ _ _ _ _ _ _ 1,111,646,896 Orders _________________ 1,058,929,920 Four Weeks End. Sept. 5 (Feet) 1,121,346,896 1,087,869,108 1,no,972,252 t For the first forty weeks of 1925 the lumber cut (soft woods) was 10,522,826,171 feet, shipments were 10,390,645,312 feet and orders were 10,103,483,026 feet. These figures indicate production, shipments and orders slightly above normal. Building During the nine months of 192.5 to the end of September building operations in cities of the Tenth District reporting regularly to the Monthly Review were larger than in the same period in any preceding year of building statistics. The nine months record for this year was 28,089 permits issued in eighteen cities for buildings and an estimated construction cost of $98,090,899. During the first nine months of last year the record for the same cities showed 25,974 permits issued and an estimated cost of $76,862,454. The increase for this, year for this period was 2,IIS or 8.1 per cent in the number of permits and $21 ,22.8,445, or 27.6 per cent in estimated building expenditure. September was one of the best building months of the year. The number of permits issued for new buildings to be started before winter was not quite so large as in August or a year ag but the total estimated cost of permits was 28.9 per cent large than that for August permits and 15.4 per cent larger than that for permits issued in September 192.4. THE MONTHLY REVIEW ============================~5 TH.DISTRICT CITIES Permits Issued Estimated Cost 1924 1925 1925 1924 Casper, Wyo. ________ 20 ,6,236 $ 44 1, 48,725 Cheyenne, Wyo. ______ 23 31 46,905 51,854 Colorado Springs, Colo.. _ 88 88,274 77,409 97 Denver, Colo. _______ 722 883 2,766,750 3,002,150 Hutchinson, Kans. ____ 62,110 33,910 43 37 48 Joplin, Mo·---------·132,363 56 130,095 227 Kansas City, Kans·--····- 204 241,643 3°3, 137 Kansas City, Mo.·-·-·--- 5o9 3,231,06o 1,708,150 555 168 1,501,120 Lincoln, Nebr·--··------ 183 4o6,995 21 24 27,500 Muskogee, Okla ..·-··---39,49 1 Oklahoma City, Okla. __ 140 1 75 413,809 354, 175 Okmulgee, Okla .. ____ IO 17,385 3,800 4 Omaha, Nebr 229 310 1,276,924 1,720,866 Pueblo, Colo. ____ ____ 108 121,610 90 148,995 St. Joseph, Mo. _______ 92 739,463 250,330 75 Topeka, Kans. ______ ·- 123 159 419,014 172,010 Tulsa, Okla. _________ 195 242 871,266 449,820 Wichita, Kans. __ --·-- 229 321 350,014 82 5,557 September.. _·2,969 August .....·--·-----··-_ 3,125 Nine Months .. _ .. ______28,089 3,516 '/,n,807,101 '/,10,233,814 2,889 '/, 9, 159,It 2 '/,10,039,901 2 5,974 '$98,090,899 '$76,862,454 Per~Cent Change -87.2 --9.5 -12.3 -'7.8 -45.4 1.7 -20.3 89.2 268.8 -3o.4 -14.4 -'78.1 -25.8 22.5 195·4 143.6 -48.4 -57.6 15-4 -8.8 27.6 Mining ZI C A D LEAD ORES: Steady and increasingly heavy market demand for zinc and lead, and higher average price paid by smelters and shippers for ores bearing these metals, induced greater activity at the mines in the Missouri-Kansas-Oklahoma or Tristate district during September and the first three-quarters of 1925 than had been recorded for a month or nine months in the history of the field. The returns show producers received a weekly average of $1,067,306.87, or a total of $42,692,275, for ores sold and shipped during the first forty weeks of the year. This record compares with a weekly average of $732,125.90 and a total of $29,285,036 received from the sale of ores during the first forty weeks of last year. The increase was $13,407,239 or 45.8 per cent. Moreover, the value of the zinc and lead ores sold and shipped during t he forty weeks of 1925 was $1,141,413 or 2.7 per cent greater than the value of zinc and lead ores sold in the district during t he entire year, 1924. A survey of recent weekly reports shows the value of ores shipped during the four weeks ending October 3, amounting to $5,085,626, was the largest for four consecutive weeks in this or last year, if not for all time. A summary of ore shipments and values follows: ZINC ORES Value Tons Oklahoma _____ ....... ·-- 52,618 $ 2,868,840 Kansas _ _ _ _ _ _ 16,842 917,039 188,302 Missouri__··------- - 3,458 Four weeks to Oct. 3 .... - 72,918 Previous four weeks.--·· 55,519 Same four weeks in 1924. 53,663 Forty weeks, 1925 ____ ..6o8,955 Forty weeks, 1924 _____ 538,851 '/, 3,974,181 2,987,981 2,267,879 31,710,645 22,196,877 LEAD ORES Tons Value 8,074 '$ 939,130 1,332 154,770 1 53 17,545 9,559 n,249 7,287 95,014 69,530 t, 1,n1,445 1,440,000 792,330 10,981,630 7,088,159 The average price paid for zinc ores during the first forty weeks of 1925 was $52.62 per ton compared with $41.05 per ton for the same period in 1924. Lead ore prices averaged $114.12 per ton for forty weeks this year, against an average of 100.43 for forty weeks of last year. During the week ending October 3 zinc ores were sold at '/,56 per ton and lead ores at '/,II 5 per ton. PRECIOUS METALS: Conditions at the metal mines of Colorado were generally more favorable in September than for a long time, with prices of silver, zinc and lead well above the average for last year and prospects favorable for the highest rate of activity of the year during the closing months. While complete figures are lacking, those reported by the larger camps indicate a substantial increase in production of gold over last year and a ga~n in silver production, while of zinc and lead large increases are In prospect. COAL: Production of bituminous coal in this district during September was 2,575,000 tons, an increase of 286,000 tons over August and the largest output for any month this year except that for January. Compared with production in September 1924, there was a decrease of 475,000 tons. Production during September and in August this year, and also in September of last year, is here shown in tons: •sept. 1925 Colorado........ ············-··-·················· ... ·- 899,000 Kansas.............. _ _ _ _ _ 347,000 Missouri ...... _ _ _ _ _ _ _ _ _ 258,000 New Mexico................ _ _ _ _ _ 197,000 Oklahom..__ _ _ _ _ _ _ _ _ 215,000 Wyomi n g . · - · · · · - - - - - - - - 659,000 Aug. 1925 761,000 339,000 248,000 185,000 225,000 531,000 Total, six states-··-········------'"',57 5,000 *Estimated 1,01 ,ooo 435,000 318,000 251,000 292,000 744,000 3,050,000 Production of soft coal in the six states during the first nine months of 1925 was 19,759,000 tons as compared with 20,967,000 tons produced in the first nine months of 1924, indicating a decrease of 1,208,000 tons or 5.8 per cent. For the calendar year to October 3 production of soft coal in the United States was 371,303,000 tons compared with 349,641,000 tons in the same period last year. Petroleum The output of crude oil in five states of the Tenth District averaged 692,934 barrels per day during September, as compared with 652,016 barrels per day in August and 713,359 barrels per day in September 1924. Gross production in barrels during the 30-day month of September is compared in the following table with that for the 31-day month of August, and also with production in September of last year: •sept., 1925 Barrels Oklahoma _ _ _ _ _ _ _ _ 14,570,ooo Kansas.·--··3,338,000 Wyoming.·--·· 2,644,000 Colorado 119,000 117,000 New Mexico.·----··-- •Aug., 1925 Barrels I4,oo7,95o 3,287,650 2,671,300 n6,100 **Sept., 1924 Barrels 15,771,000 2,571,000 2,983 ,000 56,000 20,000 Total barrels_··-········-··-······-··--20,788,000 •Estimated, American Petroleum Institute. ••Official, United States Geological Survey. 20,212,500 21,401,000 129,500 Gross production of crude oil in the five states was 181 ,201,500 barrels for the first nine months of 1925, which compared with 179,073,000 barrels produced in the first nine months of 1924. These figures indicate an increase for the nine months this year of 2,128,500 barrels or 1.2 per cent. D evelopment activity in September was reflected by reports showing 688 new wells completed and bringing 123,258 barrels daily rew production. The September record is compared with the record for August and for September oflast year in the following: Wells Bbls. Daily1 Completed NewProd'n 91,180 Oklahoma.........·--···· 393 19,377 Kansas .......·----······ 192 9,366 Wyoming.....·----···· 78 610 Colorado.....·-···-····-·· 3 2,725 New Mexico·-·--······ 22 Total, Sept. 1925--... 688 Total, Aug. 1925...... 783 Total, Sept. 1924-... 531 Dry Wells II3 58 3 Gas Wells 32 4 2 0 2 0 123,258 176 39 69,53 2 274 46 144,990 156 27 Rigs-Wells Drilling 1,248 449 373 104 125 2,299 2,444 2,056 Refinery activity in Oklahoma and Kansas held up well during September and on October I daily runs of crude oil to stills was slightly larger than a month previous and 23.6 per cent larger 6 THE MONTHLY REVIEW than a year ago. The number of refineries in operation and daily runs to stills are shown for the three dates: Refineries Operating October 1, 1925-._ .72 September 1, 1925.·-··-··------------74 October 1, 1924.. 71 Daily Runs Barrels 273,740 2 73, 12 5 221,475 Portland Cement Production of Portland cement at mills in western Missouri, Kansas, Nebraska, Oklahoma and Colorado during September was 5.2 per cent larger and shipments 4 per cent smaller than in September a year ago. For the United States the month's production was 9.8 per cent larger and shipments 5.2 per cent larger than in the corresponding month last year. Stocks of cement at the end of September were 44.4 per cent larger in the five states and 21.1 per cent larger for the mills of the entire United States. Production and shipments in September and stocks at the end of the month reported by the Bureau of Mines, Department of Commerce, in barrels: FIVE STATES Sept. 1925 Sept. 1924 Production .... _ _ _ _ _ 1,337,000 1,271,000 Shipments.............·--············1,266,ooo 1,31:2,000 Stocks end of month·--·········1,864,ooo 1,293,000 UNITED STATES)i Sept. 1925 Sept. 1924 I 5,939,000 14,519,000 17,711,000 16,827,000 10,180,000 8,404,000 The Crops The crop reporting board of the United States D epartment of Agriculture reported that the percentage of condition or yields of all crops in each of the seven states forming the Tenth D istrict on October I was below the ten year averages on th at date. The board's analysis indicated slight gains in the condition of all crops between September I and October I in Colorado, Kansas and ew Mexico, and slight losses in Missouri, ebraska, Oklahoma and Wyoming. The report for the seven states, here presented, gives the percentage of condition or yield on October I and Septem ber I and the change during the month. For growing crops the base, 100 per cent, is the ten-year average condition on September I and for crops harvested the ten year average yield per acre: October 1 Colorado.·- - · · - - - - - - - - - - 8 5,'l Kansas_·- ...... - ·--··-· · · · - - - - - - 7 6,4 Missouri.·---···· - - - - - - - - - -97•4 Nebraska.. _ _ _ _ _ _ _ _ _ _ _ 83.8 New Mexico--··· · - - - - - - ·----90,8 Oklahoma____ · · - -- - - - - - -78,5 Wyoming .....·---····-···· - -- - - - -97•'l United States ...·---············------96.1 September 84.9 75.4 100.5 84.7 89.3 80.1 105.7 93.3 I Change 0.3 1.0 -3.1 -0.9 1.5 -1.6 -8.5 'l.8 The October reports in detail showed that of twelve important crops grown in this district this year one was expected to show a larger yield and eleven smaller yields than in I 924. The one exception was cotton with an increase of 6 per cent. In the face of disappointing yields and an unfavorable crop season farmers in this district are encouraged by the higher average of prices for their products and are going ahead with preparations for the coming year on a larger scale. WHEAT SEEDING: Preparation of the soil and seeding of wheat throughout the winter wheat belt was retarded in some sections by dry weather in the last half of August and in the early part of September, and in some sections rains delayed planting. On the whole, however, this work was fairly well advanced by October I and early planted wheat was coming up to good stands. According to the D epartment of Agriculture survey farmers in five of the leading producing states had indicated their intentions to plant more of their acres to wheat this fall. Increased acreage to be sown to wheat was reported for Colorado 5 per cent, for Kansas 4 per cent, for Missouri 30 per cent, for Oklahoma 10 per cent, and for Nebraska a decrease of 2 per cent. PRODUCTION OF CORN IN SEVEN STATES Estimated Total Yield Oct. 1, 1925 1924 15,650,000 Colorado.·-········-········· - - - - - - - - 25,877,000 Kansas......_ 108,193,000 130,905,000 170,61:2,000 MissourL--····-·· 200,306,000 203,280,000 215,255,000 Nebraska.. ---····--··--······ New Mexico.. __ :2,077,000 4,200,000 65,6oo,ooo Oklahoma ___ ····----······ 21,715,000 z,310,000 Wyoming.....·------···-····---_ 4,080,000 59 2,557,000 452,646,000 'l,436,513,000 Seven States.......·-····--- ....... _ _ _ _ 577,503,000 Tenth DistricL ...... - -· - - - - - - - - 399,453,000 United States.. 2,917,836,000 This would indicate 23,751,750 acres of wheat to be planted this fall against 21,260,000 acres planted in the fall of 1924, an increase for this year of 2,491, 7 50 acres or I I. 7 per cent. CORN: There was but slight change in corn crop prospects in the Tenth District between September I and October I. The period of heat and drought which extended into September caused severe injury to corn in the eastern part of this district. The Missouri report indicated that while the loss in bushels in that state was smaller than expected, the quality was reduced with much of the crop chaffy. Very little corn was still immature and frost damage, if any, would be light. In Kansas this year's crop was not nearly so well distributed over the state as was that of .i91+ Many counties of north central Kansas and a few in the south central section have a near corn failure. Yields are fairly good in most of the eastern third of the state and in a few counties of the southwest. Much of the corn is of so light yield it will be harvested in the field by live stock. The long drought, hot weather and high temperatures almost burned out the crop in Oklahoma, according to the Government's report. The rains came too late to benefit the crop as it matured in J uly and August. In Nebraska the report said that virtually the entire corn crop had matured and husking had been started by October 1, and that the corn crop had improved in condition during the month, and without damage by frost. Conditions in Colorado were exceptionally favorable to corn during September, permitting a large per cent to mature. Wyoming corn improved <luring the month and the estimate was increased. OTHER CROPS: Marked improvment in Colorado potatoes and sugar beets was reported for the month. Kansas sugar beets improved and it was estimated the Arkansas Valley in that state would produce its largest sugar beet crop. COTTON: The Governmen t's October reports indicated slight increases between September 16 and October I in the estimated yield of cotton in the eight producing states west of the Mississippi river, known as the southwest cotton belt. Small increase in the prospective yield was reported for Oklahoma, Missouri and New Mexico, parts of whose cotton areas are in the Tenth District, and each of the three states this year producing its largest cotton crop, according to the official figures. The estimates of the probable yield of cotton in bales of 500 pounds gross weight are here given at the last three reporting dates, with the final census ginnings for 1924 for comparison: Oct. 1 Oklahoma....- .. 1,540,000 Missouri.. .... 240,000 6o,ooo New Mexico.......................... 3,875,ooo Texas...·-······Arkansas .. -----··--··-·········· 1,400,000 Louisiana ______ ··-·-···--·· 835,000 Arizon 94,ooo California .... 114,000 Sept. 16 1,471 ,ooo 239,000 58,000 3,873,000 1,367,000 729,000 94,000 113,000 Sept. 1 Final 1924 1,511,000 1,520,000 , 189,000 :250,000 , 59,000 55,ooo 3,851,000 1,368,000 644,000 89,000 112,000 4,951,000 1,098,000 493,000 108,000 78,000 Eight southwest states.......... 8,158,000 Tenth District.. .... 1,518,000 United States total._.._____ 14,759,000 7,944,ooo 1,463,000 13,931,000 7,893 ,000 1,513,000 13,740,000 8,483,000 1,442,000 13,628,000 THE MONTHLY REVIEW Grain Movements Movement of grain to the markets of this district was smaller in September than in August and also smaller than in September oflast year for all classes except oats and kafir. Decrease in wheat receipts for the month was 47.2 per cent from the August total and 64.6 per cent from the total for September, 1924. Arrivals of corn at these markets were 33.3 per cent less than in the previous month and 45.3 per cent less than in September a year ago. R eceipts of oats fell 54.5 per cent as compared with the August total but the month's receipts exceeded those for September of last year by 7.4 per cent. The following shows the number of bushels of six classes of grain arriving at reporting markets of the district during September, with totals for the month for comparison with those for August, 1925 and September, 1924: Wheat Kansas CitY-··-··-- 4,585,950 Omaha.. _______ 1,975,400 Hutchinson·--·--- 949,050 St. Joseph.·-···-·-- 789.6oo Wichita ..............- .... 1,001,700 Corn Oats 695,000 1,876,800 868,ooo 1,872,000 1,500 8,750 186,000 492,000 61,200 J06,6oo Barley Rye 47,300 57,000 77,000 97,6oo 8,750 1,500 1,750 15,000 Kafir 68,200 16,900 8,400 --------- Sept., 192 5.............. 9,301,700 2,124 ,950 4,042,900 125,800 180,100 93,500 Aug., 1925 .............. 17,604,650 3,185 ,950 8,879,500 211,300 364,050 239,50:, Sept., 1924........ _....26,312,300 3,884,100 3,765,800 246,400 266,650 87,100 MARKET MOVEMENTS: The September reports from stock yards at the six leading market centers of the District showed ~eceipts of 583,325 cattle, the largest receipts for a single month smce October, 1924. The September cattle receipts exceeded those for August by 13,167 or 2.3 per cent, but as compared with the heavy run of cattle in September of last year there was a decrease of 218,173 head or 27.2 per cent. A total of 106,221 calves arriving at the six markets in September was, with the exception of the August total, the largest since ovember 1924, though 53,285 or 33.4 per cent smaller than the receipts of calves in September 1924. Receipts of 590,783 hogs during September were 45,875 or 8.4 per cent larger than the number received at these markets in August, and 74,863 or 11.4 per cent smaller than the total for the same month in 1924. A larger number of sheep and lambs arrived at the six markets in September than in any other month this year, but the total of 983,396 sheep received during the month was 2I0,142 or 17.6 per cent less than the receipts in September last year. The supply of horses and mules, I 5,486 head, exceeded that for August by 3,761 or 32.1 per cent, but fell 1,445 or 8.~ per cent below the receipts reported for September of last yea·r. A summary of the reports on live stock receipts follows: Cattle 59,641 207,598 15,628 187,964 11,716 105,165 4,132 26,505 8,952 22,125 6,152 41,426 204,411 383,329 104,393 281,589 648 9,026 Horses Mules 3,479 1,704 1,180 5,745 1,371 2,007 September, 1925.·-··----··-··········583,325 106,221 590,,783 August, 1925 _ _ _ _ _ _ _ 570,158 121,807 544,908 September, 192.,.__ _ _ _ _ 801,498 159,506 665,646 983,396 659,990 1,193,538 15,486 n,725 16,931 Flour Production Southwestern mills increased their operations during September and production was 4.8 per cent larger than in August but 22.4 per cent below a year ago. The reporting mills, which supply more than two-thirds of the milling capacity in western Missouri and the states of Kansas, Nebraska and Oklahoma, made 1,9I0,227 barrels of flour, compared to 1,823,104 barrels in August and 2,460,136 barrels in September, 1924. Production in the first three months of the wheat year, which began with July, was 5,675,055 barrels against, 6,552,99 1 barrels produced in the first three months of the previous wheat year. The September flour output in barrels at the leading milling centers, compiled from reports to the Northwestern Miller: Sept., 1925 Barrels Atchison.·-····-··------- u7,386 Kansas CitY··----····510,780 Omaha____ 88,314 Salina_··-··128,488 St. Joseph.·-··-··--I 54,451 Wichita_··-··137,899 Outside.... 762,909 Aug., 1925 Barrels uo,192 450,76o 93,959 98,610 n7,799 143,192 808,592 7 Sept., 1924 Barrels 125,050 545,538 104,007 125,931 189,391 225,986 1,144,233 Total barrels.............. _ _ _ _ _ _ 1,910,227 Live Stock The live stock industry in the Tenth District at the beginning of October was in stronger position than at any previous time this year. Fall grazing on ranges and pastures was greatly improved by rains which began to fall about September IO, and continued through the month at intervals until practically every section in the District had received a generous share of moisture. Drought conditions everywhere were speedily and effectively relieved. All classes of live stock improved in flesh and health and were reported in excellent condition. Market movements of live stock during September, while slightly and seasonally larger than in August, were considerably smaller than in Septern her a year ago. There was an active demand for feeders for the country and the outgo from these markets was the largest of the year. Country prices were reported $5 to $IO per head higher on stocker and feeder cattle. Fatted stock was in good demand at the markets for slaughter at the packing houses. Prices were much better than those prevailing a year ago. 6o,916 Kansas CitY··-···· Omaha.... 176,783 63,6o2 St. Joseph ........ Denver................ 37,655 Oklahoma City...·-··-·---·· ......... 22,210 Wichita_··-··- ... ... ... -· ... ·--····-- 22,159 Calves Hogs Sheep --------- STOCKER AND FEEDER OUTGO: Reports from four markets showed shipments to the country of stock and feeding cattle, calves and sheep were larger during September than in any previous month this year, while the outgo of hogs for feeding was small and showed little change from preceding months. However, the countryward movement from the four markets of all classes of live stock during September was much smaller than in Sep tern her 1924. The reports on stocker and reeder shipmertts: Cattle .............. 112,843 64,688 ·······-······ 14,533 -···· 1 7,5 2 9 Calves 4,021 Hogs 1,769 296 1,927 3,236 September, 1925-----··········209,593 August, 1925 _ _ _ _ _ _ _ _ 166,832 September, 1924...·-·-·· ·-·---·--······317,565 6,086 5,705 J0,556 9,331 15,02:2 15,535 Kansas City...·-··Omaha .... St. Joseph ........ Denver_............ 5,393 Sheep 75,807 2 09,0 94 42,267 121,087 448,255 242,681 581,6o8 MEAT PACKING: Purchases of live stock by meat packers reflected somewhat heavier slaughtering operations during September than were indicated by purchases in the previous month. However, the September purchases of all classes of meat animals were less than those in September a year ago. The record of purchases at the six centers, including hogs shipped· direct to packers: Cattle ........ 126,780 Kansas City.... --Omaha .. _ •.. ____ .. _ .-·--·-··········---· 95,196 St. Joseph ____ ... ... 43,317 Denver........ ···-··-··- -···--··-··---·-- 10,570 Oklahoma City -· .... _. 16,751 Wichit 7,887 Calves 38,094 II ,209 9,300 4,141 8,093 3,468 September, 1925-._ August, 1925 .... September, 19:24..- - 74,3°5 90,993} I00,07'J. 300,501 289,174 329,230 Hogs II8,805 126,919 59,428 20,495 19,61s 37,253 Sheep II3,759 143,o55 59,738 u,503 281 1,847 382,518 382,521 473,54'4- 330,183 289,392 4o6,916 r 8 THE MONTHLY REVIEW Business Conditions in the United States. Production in basic industries and factory employment increased in September. Distribution of commodities, both at wholesale and at retail, continued in large volume, and the level of prices remained practically unchanged. PRODUCTION: The Federal Reserve Board's index of production advanced 2 per cent in September, notwithstanding the suspension of anthracite mining. The volume of output increased considerably in the iron and steel, bituminous coal and textile industries, while the decreases which occurred in some other industries were relatively small. Automobile production was larger than in August, but continued to reflect the effects of curtailment incidental to changes in models. Number of employees on factory payrolls in September was larger than in August in nearly all reporting industries. Building contracts awarded during September did not equal the record level of August, but continued large as compared with earlier months. Total contracts awarded during the first nine months of this year were nearly as large as for the entire year 1924. Crop conditions, as reported by the Department of Agriculture, showed considerable improvement in September and the indicated yield of cotton, corn, oats, barley and hay were larger than a month earlier, while forecasts of wheat and tobacco production were slightly smaller. Marketing of crops increased further in September, but was smaller than last year. TRADE: Wholesale trade was 9 per cent larger in September than in August, and sales in all lines, except drygoods, were larger than a year ago. Sales of department store and mail order houses showed considerably more than the usual increase in September and were larger than a year ago . Stocks of merchandise at department stores also increased in September more than usual and at the end of the month were 4 per cent greater than a year ago. Wholesale firms in all leading lines, except groceries, reported smaller stocks on September 30 than a month earlier. Total and merchandise freight car loadings in September were larger than during the same month of any previous year. Coal shipments were smaller than in August, owing to the anthracite strike, and shipments of coal and of grain products were smaller than in September of last year. PRICES: The level of wholesale prices, as measured by the index of the bureau of labor statistics, declined slightly in September. Among groups of commodities grains, woolen goods, and furniture showed price declines, while prices of coal and building materials advanced. In the first half of October prices of grains, wool, and rubber increased, while prices of sheep, hogs, sugar, and cotton declined. BANK CREDITS: At member banks in leading cities the volume of loans, both for commercial purposes and on securities, increased further between September 16 and October 14, and at the middle of October total loans of these banks were nearly $650,000,000 larger than at the end of July. During the same period demand deposits of these Banks increased by about $36opoo,ooo, but were below the level of the beginning of the year, while the volume of their borrowings at the reserve banks increased by about $200,000,000 to the highest point of the year. Total volume of Reserve Bank credit outstanding was larger in October than at any other time during 1925, reflecting increases during the two preceeding months both in discounts for member banks and in acceptances bought in open market. This growth has been due primarily to the seasonal increase during the period of about $100,000,000 in currency in c:rculation, and there has also been a considerable increase in member bank reserve balances, accompanying a growth in their deposits. In October the rates on prime commercial paper were firmer and the renewal rate on call loans averaged higher than in September.
@FedFRASER