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-l THE MONTHLY REVIEW Qf Agricultural, Industrial, Trade and Financial Conditions in the Tenth Federal Reserve District FEDERAL RESERVE Vol. 17 KANSAS C1TY, BANK Mo., USINESS conditions in the Tenth Federal Reserve District displayed decidedly mixed tendencies in Septemher. Loans and discounts at member banks continued B to decline and the member banks made additional reductions in their indebtedness to this bank and branches. Debits by banks to individual accounts were slightly larger for the month but displayei:! about the same decline from a year ago as reported in previous months. Commercial insolvencies declined markedly both as to number and to the amount of liabilities involved. Department store trade, favored by weather conditions, showed more than the usual seasonal expansion and the 11 .2 · S b d 11 l d percent d ecrease m '· eptem er o ar sa es, as compare to a year ago, was the smallest decrease from the corresponding month of the preceding year reported since June, 1931. Wholesale trade also made a good seasonal showing but the dollar volume for all reporting lines was below that of a year ago. Inventories at both wholesale and retail, which have declined for several years, are low. Higher ore prices stimulated shipments of zinc ore and lead ore, bituminous coal production expanded at a greater rate than usual, and cement mills reported a non-seasonal pick-up in output. Crude oil production declined but flour production increased somewhat. Very little building activity was reported. Marketings of grain were comparatively light and livestock, hogs excepted, were marketed in somewhat smaller numbers than usual although receipts were seasonally heavier than in August. Harvesting of corn, cotton, sugar beets, broomcorn, . k' dry beans, grain sorghums, hay, and 1ate potatoes ts ma mg good progress, and the seeding of winter wheat and rye is nearly completed in the eastern half of the District. Seeding and Plant growth in the western p·art of the wheat belt have been retarded by inadequate moisture supplies. Agricultural commodity prices, with few exceptions, declined in September and the forepart of October. All grain prices broke sharply between September 1 and October 15, on which date they were at new low levels for this year's crops. Livestock values moved downward with present pork prices but 35 cents per hundredweight above the thirty-five years' low of last May, and cattle and sheep prices the lowest for this season in thirty-thr~e years. Financial MEMBER BANK OPERATIONS: A further reduction in all classes of loans and discounts during the four weeks ended October 12 is reflected in the weekly condition statements of fifty-four reporting member banks in leading cities of this District. Since October 14 last year these banks have reduced their loans secured by stocks and bonds 13 percent, "all other" loans 29.3 percent, and total loans and discounts 25 percent. Reductions in the past three years have carried loans on United O .F KANSAS CITY NovEMBER 1, 1932 No. 11 BUSINESS IN THE TENTH FEDERAL RESERVE DISTRICT Percentages of Increase, or Decrease (-), for September 1932 over August 193 2 and September 1931 and for the first nine months of 1932 over the like period in 1931. September 1932 9 Months 1932 Compared to Compared to Banking Aug. 1932 Sept. 1931 9 Months 1931 Payments by check, 29 cities................. 2.5 -26.7 -28.3 Federal Reserve Bank clearings.............. - I.I -25.9 - 26.4 Business failures, number........................ - 2 9·9 - 4·7 i6.i Business failures, liabilities...................... -67.1 -55.3 53.2 Loans, 54 member bank..,_____ - 1.8 -25.0 Investments, 54 member banks.............. 1.6 - 2.0 Net dema nd deposits, 54 member banks - 3· 2 - 1 6.7 Time deposits, 54 member banks...-....... o. 4 - 7.6 Savings deposits, 49 selected banks·-····· o.7 -10.3 Savings accounts, 49 selected banks...... - 0.2 - 3.8 Distribution -23.6 9.9 Wholesalers' sales, 5 lines combined ..... . Retailers' sales, 35 department stores.... 37.4 L~m~er sales, 1 62 _retail yards ............... . 4.7 Life insurance, written._ .......................... . - 6.4 -zo.o Construction Building contracts .Lwarded, value·-··-··· 95.2 Residential contracts awarded, value.... 18 7 Building permits in 17 cities, value........ -31:0 Production - 2.7 - 5.1 Flour.·-··················.................................... 4.0 -II.2 20.5 Crude petroleum·--·································· - 6.6 - 6.o -14.I ~~:\~iipp~d)·T;;;·~~~~··o;;·~;i·~·~::::·.~· -34.6 -39.6 Lead ore (shipped) Tristate District...... 1 4 3.3 -21 .7 -4I.7 Cement ....·-·······················---7.4 Grain receipts, 5 markets Wheat... ............... _ _ _ __ 2 -43.2 -47. Corn ............................................................ 10.8 39· 1 -23.6 -z2.9 Oats·---······················································· -38.4 268.9 Rye .............................................................. 139.5 2 1 4· -63.6 Barley.-....................................................... Kafir -18.6 22.7 163.8 Livesto~k·;;~~ip~~·;·6 ~~;k~~~······················ Cattle ......................................................... . 6.6 8.2 - 8.3 - 8.o 16.5 Calves.__...................................................... 4.7 26.7 9.5 Hogs.· - - - - · · ·································· - o.6 - 6.4 41.5 - 1 5.5 8.4 93.3 53.7 Meat packing, 6 markets 2.6 - 5.9 4.3 Cattle. · - - - - -······························· - 2.1 - 6.8 3.5 Calves._···············----21.0 x.6 46.2 2.8 - 7.4 - 17.5 Stocker and feeder shipments, 4 markets Cattle .................... - ~ - - - - 33.9 14.9 -10.1 Calves........................................................ 79.3 «·9 6.3 Hogs ........................... ································ -24.7 -5 8•4 -47.5 Sheep ............................_ _ _ _ II2.2 -53.2 -49.4 ~f!~ ~~:~ t:::~~··;;d··~;T~;:::::::::::::::...... ............... ~:e~~~:~·.·.·:. · · · · · · · · ··· · · States Government and other securities to the lowest levels since 1922, and "all other" loans to new low post war levels. Compared to peak holdings of recent years, total loans and loans on securities by these banks have declined 47 percent and "all other" loans 50 percent. This~Copy Released For Publication In Morning Newspapers, October 29 THE MoNTHLY REvrnw 2. Total investment holdings of these banks, which increased percent between Septem her I 4 and Octo her I 2, have shown a reduction of but 2 percent since October 14, 1931, the decline in investments in stocks, bonds, and securities other than United States securities being absorbed by an enlargement of I I.'.2 percent in holdings of United States securities. Investment portfolios as of October I'.2 were but 4.6 percent smaller than their peak reached on September 16 last year. Demand deposits declined 3.2. percent in the four weeks ended October 12 and on that date were 16.7 percent smaller than a year ago and 35 percent smaller than on August 14, 1929, when they were the highest in recent years. Time deposits, which have shown but slight variation from week to week, increased 0.4 percent in four weeks but declined 7.6 percent in fifty-two weeks. Principal resource and liability items, for the three dates of comparison, as reported by the fifty-four banks: I .6 Loans and investments-total... Loans and discounts-total....... Secured by stocks and bonds All other loans and discounts lnvestments-tota.______ U. S. securities........................ Other bonds, stks, and sec..... Reserve with F. R. bank.-......... Net demand deposits____ Time deposits.............................. Government deposits.................. Oct. n, 1932 Sept. 14, 1932 Oct. 14, 1931 $518,041,000 $518,56o,ooo $6o7,906,ooo 253 ,944,000 258,682,000 338,367,000 78,208,000 79,222,000 89,872,000 175,736,000 179,46o,ooo 248,495,000 264,097,000 259,878,000 269,539,000 144,448,000 141,584,000 129,897,000 119,649,000 uS,294,000 139,642,000 40,883,000 45,319,000 49,822,000 341,489,000 352,654,000 409,743,000 180,745,000 180,105,000 195,694,000 7,380,000 2,899,000 6,425,000 RESERVE BANK OPERATIONS: Member banks reduced their indebtedness to the Federal Reserve Bank of Kansas City and branches I I.I percent during the four weeks ended October 12, and on that date, for the first time since July 22, 1931, the total of bills rediscounted for member banks was smaller than on the corresponding date of the preceding year. Changes during the four weeks in holdings of bills purchased and United States Government securities were negligible, but, as compared to a year ago, October 12 holdings of the two classifications were reversed, holdings of bills purchased being reduced i41,722,140 and purchases of Government securities increased $48,137,500. Between September 14 and October 12 the amount of Federal reserve notes in circulation declined 2.3 percent, but on the latter date circulation was 22.3 percent larger than on the corresponding date last year. Member banks' reserve deposits- declined 7.3 percent in four weeks and 19.9 percent since October 14, 1931. Gold reserves as of October 12 were approximately 4 percent smaller than one month or one year earlier. The principal resource and liability items contained in the weekly condition statements of this bank and branches: Oct. 12, 1932 Sept. 14, 1932 Oct. 14, 1931 Gold reserve.,______ $ 82,272,321 $ 85,897,422 $ 85,925,408 Reserves other than gold·--······· 4,566,292 4,6:20,465 7,376,218 Total reserves .... _ _ _ _ _ 86,838,613 90,517,887 93,301,626 Bills discounte~----16,733,414 18,814,188 21,971,447 Bills purchased .. _ _ _ _ 894,621 894,186 42,616,761 U. S. securities ...... _ _ _ _ 57,252,100 57,267,100 9,114,6oo Total bills and securities............ 74,880,135 76,975,474 73,702,808 Total resources ........ - - - 197,313,415 196,768,630 203,229,550 F. R. notes in circulation.......... 92,028,215 94,228,015 75,226,490 Member banks' reserve deposits 62,697,436 67,647,190 78,259,754 The discount rate of the Federal Reserve Bank of Kansas City, on all classes of paper and all maturities, remained unchanged at 3½' percent. SAVINGS: Forty-nine selected banks in leading cities of this District reported an increase of 0.7 percent in the amount of savings deposits and a decrease of 0.2. percent in the number of savings accounts during September. Total deposits and accounts reported as of October 1 showed declines of 10.3 and 3.8 percent, respectively, as compared to October l a year ago. The amount of savings deposits and number of savings accounts as reported by forty-nine banks, follow: October 1, 193 _ _ _ _ __ September I, 1932........ _ _ _ __ October 1, 1931._············ · · - - - - - Savings Accounts 4 23,34 2 424,292 440,056 Savings Deposits $117,754,758 116,947,826 131/208,860 Business Failures September witnessed a sharp decline in both the Tenth District and the United States in the number of business failures and also in the amount of liabilities involved as compared to the preceding month. Numbers of Tenth District defaults, as well as being the smallest for any September since 1929, were with one exception, June, the fewest for any month since July, 1931. The amount of liabilities involved has been exceeded in every month this year and in every September since 1928. Commercial failures in the Tenth District and the United States as reported by R. G. Dun and Company~ •:i~ti TENTH DISTRICT Number 122 September 1932·--·············-···· August 193..._,_ _ __ 174 September 1931 _ _ _ __ 128 Nine months 193 _ _ __ 1,258 Nine months 1931 _ _ __ 1,084 UNJTED STATES Liabilities Liabilities Number $ 1,484,370 2,182 $ 56,127,634 2,796 77,031,212 4,5o8,317 1,936 47,255,650 3,324,257 30,619,70~ 25,007 757,63 2,773 531,776,004 19,990,500 20,970 Bank Debits Debits to individual accounts, as reported by banks in twenty-nine leading Tenth District cities for the five weeks ended October 5, increased 2. 5 percent as compared to the five weeks ended August 31. Payments by check during the five weeks and forty weeks ended October 5 this year as compared to the corresponding five and forty weeks last year declined 26.7 and 28.3 percent, respectively. PAYMENTS BY CHECK F1vE WEEKS ENDED Albuquerque, N. M.·--··············· Atchison, Kans _ _ _ _ __ Bartlesville, Okl _ _ _ __ Casper, Wyo _ _ _ __ Cheyenne, Wyo ... _ _ _ __ Colorado Springs, Colo ..-........... Denver, Colo..... _ _ _ __ Enid, Okla .................................. . Fremont, Nebr.. _......................... Grand Junction, Colo................. Guthrie, Okla............. _ _ __ Hutchinson, Kans ... _ _ __ Independence, Kans... _.............. Joplin, Mo ................................... Kansas City, Kans ..... _.............. Kansas City, Mo _ _ _ __ Lawrence, Kans.·-··---Lincoln, Nebr.·-·············:. ............ Muskogee, Okla ..- ...................... . Oklahoma City, Okla ................ . Okmulgee, Okla. _ _ _ __ Omaha, Nebr. _ _ _ _ __ Pittsburg, Kans. _ _ _ __ Pueblo, Colo _ _ __ Salina, Kans _ _ _ _ __ _ St. Joseph, Mo .. ______ Topeka, Kans.·---······················· Tulsa, Oki....__ _ _ __ Wichita, Kans ............................. Oct. 5, 1932 $ 8,086,000 3,109,000 20,501,000 4,386,000 6,087,000 n,531,000 117,105,000 8,315,000 2,416,000 2,071,000 1,773,000 10,673,000 2,845,000 7,268,000 10,135,000 254,260,000 3,290,000 22,146,000 6,513,000 69,040,000 2,919,000 127,938,000 3,091,000 II,927,000 6,776,000 24,318,000 12,154,000 78,725,000 33,480,000 Oct. 7, 1931 $ 12,278,000 4,120,000 17,456,000 5,890,000 7,248,000 16,626,000 163,705,000 12,587,000 3,335,000 3,461,000 1,814,000 14,557,000 6,150,000 8,987,000 16,108,000 349,803,000 4,528,000 34,006,000 8,555,ooo 92,772,000 3,510,000 177,898,000 4,963,000 18,931,000 9,4 19,000 34,324,000 17,315,000 93,786,000 47,487,000 872,878,000 .,, 1,191,619,000 Total 29 cities, 5 weeks .......... 1, Total 29 cities, 40 weeks .......... 7,479,520,000 10,432,017,000 32,646,755,000 48,715,714,000 U. S. 263 cities, 5 weeks·--····· U.S. 263 cities, 40 weeks.---··· 275,438,994,000 415,o61,672,ooo Percent Change -34.1 ---'l4.5 17.4 ---'l 5. 5 -16.0 -30.6 ---'l8. 5 -33-9 -27.6 -40.2 -2.3 ---'J.6.7 -53-1 -19.1 -37.I ---'l7.3 ---'l7.3 -34.9 -23.9 -25.6 -16.8 ---'J.8.1 -37.7 -37.o -28.1 -29.2 -29.8 -16.1 -29.5 -26.7 -28.3 -33.o -33.6 THE MONTHLY REVIEW 3 RETAIL TRADE AT 35 DEPARTMENT STORES IN THE TENTH FEDERAL RESERVE DISTRICT SALES STOCK.S (RETAIL) ACCOUNTS RECEIVABLE Stores Sept. 1932 9 Months 1932 Sept. 30, 193:2 STOCK. TURNOVER Sept. 30, 193:2 Report- compared to compared to compared to September 9 Months compared to ing Sept. 1931 9 Months 1931 Aug.31,193:2 Sept.30,1931 1932 1931 1932 1931 Aug.31,1932 Sept.30,1931 Kansas City...... _ 4 -11.8 --:25.8 4.3 -19.9 .21 .19 1.45 1.74 25.1 - 4 .1 Denver___ 5 -18.1 -20.3 1.8 -26.5 .:29 .27 2.02 2.14 8.2 -14.2 Oklahoma City.... 3 - I.4 -22.4 '.2.4 -32.8 .36 .24 2.11 2.12 io.3 -13.3 Topek.a -.___ 3 -14.4 -21.0 7.0 -21.8 .'.26 .24 1.81 1.71 5.9 --:21.3 Tulsa.................... 3 14.7 -13.8 7.:2 -31.3 .46 .27 3.31 2.85 . 28.7 - 8.1 Wichita-.............. 3 - 8.o --:20.6 4.7 -22.7 8. 4 -1 7.0 Other cities ......- .. 14 -14.1 --:24.5 4.8 -26.3 .26 .23 :2.11 2.:2 1 6. 9 - 12 .4 TotaL _····- --······ 35 -11.2 --:22.4 3.8 --:25.3 .27 .23 1.91 NOTE: Percentage of collections in September on accounts August 31, all stores reporting 30-4- Federal Reserve Bank Check Collections Check collections handled by this bank and branches at Omaha, Denver, and Oklahoma City declined slightly in September as compared to August, both as to the number of items handled and the dollar amount. Substantial reductions were recorded in Septemher and the first nine months this year as compared to the corresponding month and nine months last year, the number of items handled showing losses of 26.8 and 19.7 percent, and the value losses of 25.9 and 26.4 percent, respectively. Check collections through the Federal Reserve Bank of Kansas City and branches: AMOUNT September....... . August ............. . Nine months .... 193'.2 3,774,0 73 3,794,o63 39,161,988 1931 5, 153,l'.2'.2 5,069,163 48,77o,378 1931 ' 502,029,000 507,698,000 4,759,456,000 $ 677,683,000 682,896,000 6,466,173,000 COLLECTIONS Sept. 193:2 compared to Aug. 1932 Sept.1931 - 4.2 -'.20.2 1.0 -'.2'.2.4 8.1 -16.5 1.3 --'.22.0 1.9 -15.0 4· 5 --'.20. 5 I.4 --:25.7 '.2.05 II.I -12.6 Collections same month last year 33.3. 8 percent for the former and 3 percent for the latter. Seasonal increases in the remaining lines exceeded the averages of the past five years. Wholesalers of dry goods were- the only- ones to report their r932 sales as larger than in September, 1931, declines in the other lines ranging from 13.3 percent for drugs to 21.6 percent for groceries. Inventory changes for the month, with the exception of dry goods which increased 4.4 percent as against a five year average decline of 5.9 percent, showed no departure from normal tendencies. All lines reported month-end stocks- as considerably lighter on September 30 this year than on September 30, 1931. Dealers report collections as slow with improvement in both collections and sales depending on an advance in agricultural commodity prices. Grain Marketing September marketing of all classes of grain at the five prinTrade cipal grain markets of this District were, kafir excepted, exRETAIL: Weather··•·... conditions during September were tremely light. Receipts of wheat were equal to 71.6 percent; more favorable to department store trade than a year ago or corn, 64.8; oats, 30.5; rye, 35.5; barley, 16.5; and kafir, 117.3 in 1930. Dollar sales reported by thirty-five department percent of the ten-year average September volume. Offerings stores in the District increased seasonally 37.4 percent as of wheat and oats declined seasonally as compared to August compared to August, whereas, last year the increase was only and arrivals of wheat were the smallest for any September 17.6 percent and the five-year average increase but I 8.2 per- since 1925, and of oats the smallest for that month in over a cent. Not since June, 1931, have sales shown as small a re- dozen years. Receipts of corn, with the new crop movement approaching duction compared to the corresponding month of the preceding year, as the decline of I 1.2 percent reportecl this month. and contrary to custom, increased during the month and were Sales for the months of June, July, and August this year were 39.1 percent heavier than in September a year ago, but other29.2, 29.7, and 24 percent, respectively, helow those reported wise the lightest for any September in more than a decade. Marketings of rye and barley were heavier, and of kafir for June, July, and August last year. Dealers enlarged their inventories 3.8 percent during the lighter for the month, with rye and kafir showing substantial month as against 4.8 percent a year ago and 5.4 percent during increases as compared to September, 1931. the like period the past five years. PRICES: All grain prices receded in September and the Collections showed little change during the month, amount- forepart of October to new low levels for this year's harvest. ing to 30.4 percent of amounts outstanding on August 31 as Wheat declined I cent per bushel in September and 4 cents compared to 29.5 percent in August and 33.3 percent in Sept- more to October IO, on which date, at 42,½ cents per bushel in Kansas City, it was only 3 cents per bushel above a year ember, 1931. WHOLESALE: Each of the five reporting wholesale lines ago. Numher 2 mixed corn at 24 cents per bushel at Kansas (dry goods, groceries, hardware, furniture, and drugs) reported City on October I 5, which price is the lowest in 33 years and their September sales volume exceeding that for August. The after allowing for freight and other charges is equal to about increases of 16.7 percent in sales of dry goods and 6.2 percent IO cents per bushel to the producer, shows a decline of 6 cents in groceries were contrary to the five-year average declines of per bushel since Sep tern her I and I 5 cents per bushel as com- Reporting Stores Dry goods...................... 5 Groceries.......... ·-·········· 5 Hardware.--···········-······ 8 Furnitur..._____ 5 Drug.______ 5 WHOLESALE TRADE IN THE TENTH FEDERAL RESERVE DIST RICT COLLECTIONS SALES OUTSTANDINGS Sept. 30,193:2 compared to Sept. 193'2 compared to Sept. 1932 compared to Aug. 193:2 Sept. 1931 Aug. 193:2 Sept. 1931 Aug. 31, 193:2 Sept. 30, 1931 13.1 -10.5 8.5 -15.1 16.7 4.7 6.2 -'.21.6 3.3 -II.I 4.8 -n.5 I.I -?.3.4 '.2.1 8.7 14.7 - 1 5.9 17.0 -'.20.8 4.6 -'.2'2.3 13.7 -30.:2 5.8 -10.8 0.5 -14.6 3.4 -13.3 STOCK.S Sept. 30, 193:2 compared to Aug.31, 193:2 Sept.Jo, 1931 ,4.4 -11.6 - 1.6 -25.3 -:2.2 -8.:2 3.3 -3o.5 - 0.4 -17.:a THE MONTHLY REVIEW 4 pared tu a year ago. Prices of oats were unchanged at 19 cents per bushel during September but declined 2½ cents to mid-October and selling 6 cents under a year ago. Receipts of grain at the five leading markets of this District: Wheat Bushels Corn Bushels Oats Bushels Rye Bushels Hutchinson ..... z,45 2,95° Kansas City._. 5,262,400 Omaha ............ 1,411,zoo St. Joseph. ___ . 513,600 Wichita·---····· 1,711,500 697,5oo 897,400 318,000 13,000 132,000 2.80,000 2.66,000 1,500 19,500 67,zoo Sept. 1932....... 11,351,650 Aug. 1932·-····· 19,976,100 Sept. 1931.. .... 2.1,513,400 9 Mos. 1932 .... 144,800,300 9 Mos. 1931....237,583,300 1,92.5,900 679,5oo 1,737,500 1,103,500 1,384,950 889,000 12,760,950 5,79 1,500 42,uo,300 7,509,100 Barley Kafir Bushels. Bushels z,500 19,500 67,200 "68,600 17,600 1,750 z,600 - - - ---- - - - 91,650 88,100 80,250 108,200 2.3,500 251,600 33,400 2.19,400 677,900 2,008,700 2.14,600 1,181,050 1,636,500 86,700 36,200 Flour Milling Output of flour at southwestern mills was the heaviest for any month since _ ovember but 5.1 percent smaller than a year ago and 8 percent short of the ten-year average volume. A mid-month break in wheat prices uncovered numerous resting orders and bookings of 5,ooo to 20,000 barrels of flour were numerous, but demand subsided at the close and continued quiet the forepart of October although wheat prices receded to new low levels for this year's crop. Shipping directions were fairly satisfactory and the urgency accompanying them indicate bakers' and dealers' stocks are low. Export demand was confined chiefly to the Latin Americas and the volume was inconsequential. Flour prices closed practically unchanged for the month, but declined approximately 20 cents per barrel the first two weeks in October. Flour production at Tenth District mills as estimated from the weekly reports of southwestern mills to the Northwestern Miller: Atchison·- ·························-····-·················· Kansas CitY·--··· ······-······························· Omaha................................................... ·.. Salina....................................................... . St. Josep, ......- -- ···························· Wichita·---···········- - -Outsid •..................................................... . CORN: Tenth.•: Districtkcorn has, ....on,:._the~whole, matured well and is free from frost damage. Husking is beginning earlier than usual with more than the usual amount gathered for current needs. In the eastern half of the District yields will exceed the average, but in the western half the crop has suffered severely from drouth. Nebraska's bumper crop improved 10,845,000 bushels in September, but that of Colorado, Wyoming, and New Mexico was reduced. Forecasts for Kansas, Missouri, and Oklahoma remained the same. Corn production in the United States and the seven states whose areas or parts thereof comprise the Tenth District: Sept. 1932 Aug. 1932. Barrels ~ Barrels 136,577 . 124,078 603,8 231 641,901 u 7, 148 i 96,450 186,053_ 183,312. 42.,058 ~ 28,067 181,548 205,6011 782,441 738,033 Sept. 1931 Barrels 129,206 618,369 96,616 188,200 182,629 163,82.7 807,232 z,186,079 Crops Estimates by the Crop Reporting Board, United States Department of Agriculture, cooperating with the State Boards of Agriculture, disclose a slight improvement between September I and October I in Tenth District corn, oats, flaxseed, alfalfa hay, sugar beet, and pecan crop prospects. Forecasts of final yields of spring wheat, barley, grain sorghums, tame hay, white potatoes, sweet potatoes, dry beans, broomcorn, apples, peaches, pears, grapes, and peanuts were reduced somewhat. With the crop year virtually ended, this District will have produced below average crops of winter and spring wheat, rye, grain sorghums, tame and wild hay, cotton, all fruits except grapes, sugar beets, and broomcorn. Production of corn, oats, barley, flaxseed, white potatoes, sweet potatoes, tobacco, grapes, peanuts, and pecans will exceed the 19241928 average yields. Of the field crops, winter wheat, oats, cotton, dry beans, sugar beets, and broomcorn are the only ones to show decreases from a year ago. Colorado._ ......... Kansas .............. Missouri ............ Nebraska .... ...... New Mexico ..... Oklahoma. ___ ... Wyoming.......... Seven states·-·-· Tenth District.. United States ... Oct. 1, 1932. 16,110,000 Sept. 1, 1932 18,258,000 127,505,000 12.7,505,000 89,2.40,000 z8 I ,970,000 3,888,000 66,420,000 z,394,ooo 189,240,000 271,12.5,000 4,043,000 66,42.0,000 z,92.6,000 687,527,000 679,5 17,ooo 524,9 17,000 2,854,307 ,ooo I 53 2 ,995,000 z,884,682,000 Final 1931 19,278,000 113,838,000 170,060,000 170,714,000 5,66o,ooo 192.4-28 Av. 17,658,000 140,024,000 I 80,603,000 2. 13,537,ooo 3, 159,000 51,808,000 1,953,000 53,362.,000 533,3u,ooo 393,884,000 2,563,271,000 6u,zo4,ooo 463,42.8,000 2,62.5,063,000 z,861,000 COTTON: Picking and ginning of cotton produced on the 3,417,000 acres remaining for harvest in Oklahoma, Missouri, and New Mexico are progressing rapidly. These states, according to estimates of the United States Department of Agriculture, will produce 1,241,000 bales this year as against 1,651,000 bales picked from 3,860,000 acres last year. Oklahoma reported yields greatly reduced by boll weevil which have extended their activity further north and west than usual. Cotton production in the three states, the Tenth District, and the United States: Indicated Oct. 1, 1932. Bales Oklahoma·--································· Missouri ............ New Mexico 959,000 Three states·- ·········· ................... Tenth District.__......................... United States·- --···-···· ................ 1,2.41,000 987,000 II,425,000 191,000 91,000 Indicated Sept. 1, 1932. Bales 92.8,000 187,000 91,000 1,206,000 957,000 u,310,000 Final 1931 Bales 1,261,000 2.89,000 101,000 1,651,000 1,336,000 17,096,000 TAME HAY: A tame hay crop for this District and the United States somewhat larger than a year ago, but below average, is indicated by October 1 conditions. Prospects for the District declined 215,000 tons during the month but at the close promised a final yield of 8,546,000 tons as against 7,270,000 tons cut in 1931. POTATOES: Wyoming planted a record acreage of potatoes last spring and, until blight greatly reduced prospects in September, a record crop was promised. The State Department of Agriculture reports many fields will not pay digging costs. Blight and high temperatures have caused considerable damage in Colorado. The dry land commercial crop of western Nebraska was reduced but yields in the balance of that state are reported as good. Tenth District production is now placed at 33,461,000 bushels, a reduction of 3,308,000 bushels for the month but an increase of 5,68 I ,ooo bushels for the year. MISCELLANEOUS CROPS: Chinch bugs and dry weather damaged broomcorn considerably in September. October I conditions indicated a harvest of but 27,600 tons as against 30,500 tons promised one month earlier, 34,700 tons produced last year, and 41,080 tons as the 19'24-19:28 average harvest. Acreage abandonment in Oklahoma is reported at 17 percent this year compared to 10 percent last year. THE MONTHLY REVIEW Dry beans declined in condition during September. Hot, dry weather resulted in poor plant growth and a light set of pods. This year's crop will ....only be about 6o percent of last year's production. Digging and slicing of sugar beets ~commenced the forepart of _O ctober. Acreage is somewhat smaller than a year ago and production in this District will be cut about 22 percent. WINTER WHEAT SEEDING: Planting of winter wheat was nearing completion in the eastern half of the District by October 21. Soil in that area is in good condition for fall plowing with moisture sufficient to promote the growth of fall sown grains. In western Kansas the outlook is described as poor with much early planted grain having not yet germinated, considerable plowing remaining to be done, seed beds poorly prepared, and rainfall below normal. Livestock MARKETING: With the movement of cattle and sheep from western ranges and southern grass to market underway, arrivals of cattle, calves, and sheep at the six leading market centers of this District increasec-l, as usual, in September. The month's receipts of cattle and calves were, however, light, being but 75 percent of normal. Marketings of sheep were also comparatively light, equalling but 93 percent of the tenyear average September movement, and numbers being the smallest reported for the like month of any post war year. Hogs were in rather burdensome supply, although runs were slightly smaller than in the preceding month. Omaha reported the largest September receipts of record, and supplies at the six markets were somewhat in excess of the ten-year average. Quality of offerings was sub-normal, the average weight being the lightest for this season reported in recent years. Only about half as many horses and mules were received at these markets as normally although the September total was almost double the August total and only 8.4 percent under September a year ago. There was a fair demand throughout the month for stocker and feeder cattle and calves and for limited supplies of feeder lambs. The demand for lambs was not as vigorous as in former years, being but 52.3 percent of normal. Only twice since the war has the countryward movement of cattle during September been &mailer, 1931 and 1927, and the total outgo from . four markets was only equal to 75 percent of the ten-year average movement. Conversely the outbound movement of calves was, with the exception of 1930, the largest of any post war September, being 56.3 percent in excess of the average. RANGES: Colorado range conditions on October 1 varied from very good in western areas to poor in eastern counties. Dry weather has lowered the condition of Wyoming ranges and they are now below normal, although the winter ranges are Kansas City .............................. Omaha .. ...................................... St.Joseph ............. Denver·-············· Oklahoma City. Wichita...·-······························· 5 reported in better~condition than a year ago. Reports from western Kansas indicate a scarcity of feed in that region which, combined with limited finances, will restrict the numbers of sheep and cattle shipped in for grazing on wheat pastures. In New Mexico, Oklahoma, and western Nebraska range conditions are generally good and feed supplies ample. Livestock on western ranges are in better condition than at this time last year and, with the exception of the drouth areas of eastern Colorado and Wyoming from which some forced shipments are reported, are in good condition. Shipments of cattle and sheep are now underway with a tendency to hold back she-stuff insofar as finances will permit. There is practically no local demand for either cattle or sheep except in the feeding areas, and shipments have gone direct to feed lots or to market. As a year ago, many ewe lambs are being marketed, as old ewes at present prices will not pay transportation charges. September witnessed a more active demand for feeder lambs and numerous sales were made at $4 to $4.25 per hunderweight. LIVESTOCK FEEDING OPERATIONS: Regarding the October I livestock feeding situation, the Bureau of Agricultural Economics, United States Department of Agriculture, commented as follows: CATTLE: "The shipments of stocker and feeder cattle into the Corn Belt States during September were relatively small. The estimated shipments of such cattle, while about 4 percent larger than the small shipments in September, 1931, were 7 percent smaller than the five-year average September shipments and third smallest for the month in ten years. For the three months, July to September, inclusive, however, shipments into the Corn Belt States were about 8 percent larger than last year and about 5 percent larger than the fiveyear average for the period. The larger tot.ii movement this year was due to the rather marked increase in shipments into the five states east of the Mississippi River where the number this year was 26 percent larger than last year and 40 percent above the five-year average. The movement into the six states west of the Mississippi was about the same as the very small movement in 1931 but 10 percent smaller than the five-year average. "While the shipments of feeder cattle into Nebraska and Kansas have been very small this year, reports indicate that there has been a fairly heavy direct movement of feeder cattle into the principal cattle feeding sections of the states and that the supply of locally raised feeder cattle is relatively large. "Reports from most states were to the effect that difficulties in financing feeding operations were tending to hold down the purchases of feeding stock. With funds from the regional agricultural corporations, which have been set up by the Reconstruction Finance Corporation, now available in most feeding areas, the matter of financing feeding operations for the balance of the year will not be a limiting factor in cattle feeding." SHEEP: "Shipments offeeder lambs into the Corn Belt States in September continued very small. The estimated number inspected through markets was only about 55 percent as l.irge as the heavy September shipments of last year and 60 percent of the five-year September average number, and was the second smallest in at least fourteen years. The total shipments for the three months, July to September, inclusive, this year were only about 53 percent as large as for the corresponding period, 1931, and were the smallest for the period in at least fourteen years. Little information as yet is obtainable as to the number of lambs that will be shipped direct to Corn Belt feedlots this year. The movement to the first of October was relatively small, while last year it was heavy SEPTEMBER MOVEMENT OF LIVESTOCK IN THE TENTH DISTRICT RECEIPTS PURCHASED FOR SLAUGHTER STOCKERS AND FEEDERS Calves Cattle Hogs Hogs Sheep Cattle Calves Hogs Sheep Calves Sheep Cattle 188,120 1,612 38,276 •264,000 142,040 90,810 88,219 18,724 35,831 63,989 14,791 •225,608 243,397 1,016 13, 178 71,015 8,964 194,882 151,157 4,214 143,363 233,477 62,756 98,745 20,975 71,86o · 108,347 7,131 83,629 10,46o 31 , 158 145,283 1,007 33,583 5,00 9 33 2 487,012 466 9,401 1,787 25,273 16,358 1,305 99, 164 15,897 37,738 4,4°5 35,5 17 6,611 26,541 7,842 13,113 4,424 39,575 35,592 5,573 8,618 2,018 4,428 10,265 20,274 53,3 26 55,2 09 5,099 September 1932........................ 457,413 75,260 711,407 1,033,570 August 1932.... __ 422,623 64,592 715,735 . 730,661 71,864 561,285 1,223,714 September 1931...... 429,074 9 Months 193z.......................... 2,967,296 404,024 7,366,039 6,753,867 9 Months 1931.. ........................ 3,235,269 438,9 27 6,7 29,77 1 7,218,007 •Includes 13i,z56 hogs shipped direct to packers' yards. 177,793 132,827 154,723 616,379 25,250 14,086 17,427 685,596 74,901 79,590 187,n1 3,426 264,898 124,820 179,4n 4,547 182,444 8,232 566,430 41,832 73 2,429 1,547,885 79,64 1 l,448,II7 1,645,256 606,541 39,180 367,940 37,873 357,992 597,0 73 40,020 414,803 445,907 274,721 6,105,120 3,543,008 294,817 5,046,954 3,825,141 6 THE MONTHLY REVIEW due to the early movement of feeder lambs from the drought areas. All present information indicates that lamb feeding in the Corn Belt will be on a greatly reduced scale from last year and from any other recent year." PRICES: All livestock values, excepting well finished grain fed beeves which were exceptionally scarce with prices steady, declined in September. Heavy beeves commanded a better price than lightweight steers and yearlings, whereas, last year the opposite was true. Fat cows were 25 to 50 cents per hundredweight lower and other classes of cattle 50 cents to $I lower. Hog prices were off seasonally but declines were not as abrupt as in recent years, the decline being approximately 35 cents per hundredweight as compared to $1.10 last year. Price levels were lower this year, the September average price being $3.90 as against $5.40 last year, and $9.80 two years ago. Heaviest price reductions in sheep and lambs occured in the native lamb division where losses of 90 cents per hundredweight were recorded, due in part to month-end offerings lacking the quality shown by earlier runs. A large proportion of range offerings moved into slaughter channels, reducing the supply of feeder lambs and resulting in feeder prices showing more resistance, declining only about 30 cents per hundredweight. The month's and year's top price for cattle of $9.85 at Kansas City was the lowest September top since 1921. Top hogs at $4.35 and range lambs at $6.25 established new low post war records for September. Meat Packing . Meat packing operations at the six Tenth District market centers as measured by the number of animals purchased for slaughter, including hogs shipped direct to packers, expanded slightly in all departments. The increase in the beef and mutton departments was not as pronounced as the increase in the arrivals of cattle and sheep at these markets, but the slight increase in the pork division corresponded closely to receipts. Butcherings of cattle exceeded the September, 1931, slaughter by 2.6 percent, whereas, that of calves was off 2.1 percent. Pronounced changes from a year ago are shown in the slaughter of hogs and sheep, the former increasing 46.2 percent and the latter declining 17.5 percent. Packers' purchases of cattle, calves, hogs, and sheep during September were equal to 71.9, 61.9, 130 and 93.2 percent, respectively, of the ten-year average. ~ The United States Department of Agriculture reported the September slaughter of cattle under Federal meat inspection in the United States as 4. 5 percent and of swine 10.1 percent larger, that of calves 6.9 percent smaller, and of sheep and lambs the same as compared to September, 1931. Cold Storage Holdings Reports of the Department of Agriculture indicated that United States cold storage holdings of beef, poultry, miscellaneous meats, eggs, and cheese, as of October I this year, were sub$tantially smaller, and stocks of pork, lamb and mqtton, lard, and butter somewhat larger than on October 1, 1931. Compared to the five-year average October I holdings, the following reductions are recorded: beef, 42.1; pork, 6.o; lamb and mutton, 31.4; poultry, 56.2; miscellaneous meats, 36.7; lard, 33.1; eggs (cased), 40.1; eggs (frozen), 5.4; butter, 30.7; and cheese, 17.8 percent. September witnessed a seasonal increase in inventories of beef, lamb and mutton, and poultry, and a seasonal decrease in holdings of all' other commodities except cheese, which, contrary to usual expectations, increased. The out-of-storage movement of pork was about a third under a year ago and 40 percent below the five-year average, but the out-movement of lard was better than a year ago and only slightly less than the average. Packers were slow to put poultry into storage and the net increase for the month was only 278,000 pounds as compared to 3,816,000 pounds a year ago and 1,786,000 pounds normally. With the year's peak holdings of eggs the smallest in sixteen years, reductions during September were slightly larger than a year ago but slightly short of the normal out-bound volume. The out-movement of creamery butter was smaller than a year ago but above average. October I cold storage holdings, as reported by the United States Department of Agriculture, with comparisons: Beef, lbs ..........................•.........·- ······Pork, lbs ................... _ _ _ _ _ Lamb and mutton, lbs·- ··- - Poultry, lbs.._._ _ _ _ _ _ _ ••Turkeys, lbs......................................... Miscellaneous meat~, lbs. ············Lard, lbs........ _ _ _ _ Eggs. cases.......•····-·················-········· Eggs, frozen (case equivalent).......... Butter, creamery, lbs ..---··················· Cheese, all varieties, lbs................ .... •subject to revision. ••Included in -Oct. 1 1932 26,013 497,359 1,982 7,842 2,591 40,142 70,582 4,895 2,404 89,459 81,102 Poultry. Sept. I Oct. I Oct. 1 1932 1931 5 Yr.-Av 24,376 35,171 44,945 578,876 474,887 529,334 2,889 1,305 1,908 7,564 22,081 17,891 4,286 3,365 4,7°3 63,401 45,.4-19 56,881 100,577 69,296 105,556 8,166 5,96o 7,96o 2,656 2,951 2,54,. 107,259 80,152 129,130 79,847 88,564 98,698 (ooo omitted) Petroleum September estimated production of 16,674,000 barrels of crude oil for this District was, with the exception of August and September a year ago, when the flow was more rigidly limited, the smallest for any month since April, 1922, and 6.6 percent less than in August. Peak production for the District was reached in July, 1927, when, at a daily average flow of I ,048,000 barrels, gross production totaled 32,509,000 barrels. *Sept. 1932 Barrels 11,679,000 2,956,000 1,001,000 83,000 955,000 Aug. 1932 Barrel, 12,594,000 2,983,000 1,199,000 86,ooo 987,000 Sept. 1931 Barrels 8,393,000 2,926,000 1,116,000 I 12,000 1,286,000 Total, five state:s....._ _ _ _ 16,67-4,000 Total, United State,._____ 65,179,000 •Estimated, American Petroleum lnatitute. 17,849,000 66,220,000 13,833,000 63,636,000 Oklahom _ _ _ __ Kansas .... _ _ _ __ __ Wyoming_ _ __ _ __ Colorado_ _ _ _ __ New Mexico~----- More wells were completed during September than in any month since January, 1931, but the number was comparatively small as compared to the like month in other recent years. There was an unusually large number of dry holes struck and the number of barrels daily new production, resulting from all completions, was not impressive. New operations, as mcasur~d by the number of rigs up and wells drilling on September 30, indicate more activity than reported at any time since January, 1931. The September summary of field operations, with comparisons, follows: Wells Barrels Daily Completed New Production Oklahom 117 39,042 Kansas .... 11,462 54 245 Wyoming.......·-······9 Colorado 30 II 22,809 New Mexico·---····· September 1932. ____ 192 August 1932·--········· 137 September 1931.__. 99 9 Months 1932.. ___ 1,274 9 Months 1931 ____ 1,390 73,588 104,148 loo,595 755,072 1,876,474 Dry Wells 55 Gas Riga-Wells Wella Drilling 3 53° 0 2 0 0 -4 0 63 77 38 5 902. 7 41 ~ 435 97 271 1-4 4 464 136 89 84 818 625 THE MONTHLY REVIEW Mid-continent crude oil prices remain unchanged at 76 cents to $1 per barrel, depending on grade. Prices of refined gasoline were lower, natural gasoline higher, and furnace oils, fuel oils, and kerosene firm in Septem her. Bituminous Coal The output of soft coal at mines in this District, as estimated from the weekly reports of the United States Bureau of Mines, increased 60 percent over August. This rate of increase was double the normal rate in recent years but, nevertheless, September output was 6 percent short of a year ago, the smallest for any post war September, and but two-thirds the average volume reported for that month the past ten years. Output of soft coal in the United States and the six coal producing states of this District: Colorado_ _ _ _ _ __ Kansas .. _ _ _ _ _ _ __ Missouri _ _ _ _ _ _ __ New Mexico·----························· Oklahoma. __·····-······-··········-····Wyoming .. _ _ _ __ •sept. 1932 Tona 532,000 200,000 290,000 105,000 124,000 431,000 •Aug. 1932 Tona 270,000 149,000 213,000 85,000 54,000 280,000 Sept. 1931 Tona 598,000 180,000 253,000 111,000 183,000 465,000 Total, aix state-.._____ 1,682,000 1,051,000 1,790,000 Total, United StateS.---············· 26,266,000 22,489,000 31,919,000 •Estimated from the weekly reports of the United States Bureau of Mines. Zinc and Lead Stimulated by higher prices, shipments of zinc ore and lead ore from mines in the Tri-state district increased in September, and, with shipments exceeding production, supplies were reduced and the zinc ore surplus is now reported the lowest since 1930. Shipments of zinc ore for the four weeks ended October 1 this year as compared to the corresponding period last year were off 34.6 percent and of lead ore 1 5.1 percent. Shipments of zinc ore and lead ore from mines in Missouri, Kansas, and Oklahoma: ZINC ORE Tons 8,669 2,640 445 Value J 171,830 52,454 8,840 1, 1932·--···· 11,754 3, 1932.___... 8,637 3, 1931.__..... 17,979 1, 1932____... 112,861 3, 1931. ___... 186,926 J 233,124 Oklahom _ _ _ _ _ _ __ Kanaa•····------Missouri. ............... _ _ __ 4 4 4 40 40 Wka. ended Oct. Wka. ended Sept. Wk,. ended Oct. Wk,. ended Oct. Wks. ended Oct. 162,312 413,517 1,994,249 4,420,821 LEAD Tons 1,816 J 124 126 Ou: Value 65,734 4,569 4,693 2,066 J 74,996 849 28,385 2,433 121,650 17,930 636,178 22,890 1,040,964 The closing weeks of September, zinc ore prices were cut $2 per ton and lead ore prices J7.50 per ton to close respectively at $19 and $30 per ton as against $23 and f,45 per ton one year earlier. Lead ore recovered $2. 50 per ton the forepart of October but :zinc ore slipped $1 per ton. Lumber Consolidated reports of 162 retail lumber yards located in this District show a 4.7 percent increase in sales of lumber and a 1-4.1 percent increase in dollar sales of all materials for September as compared to August. Sales for the month were still considerably below those for the corresponding month a year ago, lumber footage declining 25.2 percent, and dollar sales 3I •5 percent. Stocks of lumber were reduced 3.1 percent during the month and on September 30 were 19.2 percent below those on the like date last year. Collections improved slightly during September amounting to 21.-4 percent of amounts outstanding at the close of August, as against 19.2 percent in August and 25.8 percent in September, 1931. 7 A summary of the combined reports showing Septem her business as compared with that for August this year and September last year in percentages of increase or decrease: Sale■ of lumber, board feet ............................... . Sales of all materials, dollars .......... _ _ __ Stocks of lumber, board feet..·-························· Outstandings, end of mont,..__ _ _ __ September 1932 Compared to August 1932 September 1931 4.7 -25. 2 14.1 -31.5 - 3.1 -19.2 1.6 -23.5 Cement For the first time since 1928 production of finished Portland cement at mills in the Tenth District expanded in September, the increase amounting to 7.4 percent and exceeding last year's output by 4.8 percent. Production, as in the two preceding months, exceeded shipments which were larger than in August but 20.2 percent smaller than a year ago. Stocks were enlarged 1.3 percent for the month and at the close were the heaviest since March, and 10.5 percent greater than on September 30, 1931. Figures on production, shipments, and stocks of Portland cement in this District as reported by the United States Bureau of Mines: Produced...................................... Shippe~---························ Stocks, end of month.................. Sept. 1932 Barrels 914,000 886,ooo 2,040,000 Aug. 1932 Barrels 851,0001 802,0001 2,013,000 Sept. 1931 Barrels 872,000 1,110,000 1,846,000 National production was reported at 8,189,000 barrels, shipments 9,722,000 barrels, and month-end stocks at ·17,865,000 barrels. Building The F. W. Dodge Corporation reported increases for this District in the total value of building contracts awarded and in residential contracts during September, but, as compared to preceding years, both classes showed sharp declines. Building operations in the United States and the Tenth Federal Reserve District as reported by the F. W. Dodge Corporation: TENTH D1sTIUCT September_...... August.............. Nine Months _ 1932 J 9,166,428 4,696,910 52,269,723 U1nTED STATES 1931 1932 1931 $ 9,203,851 $ 127,526,700 $ 252,109,700 8,312,198 133,988,100 233,1o6,100 120,029,473 1,057,363,200 2,579,439,900 Permits issued by seventeen reporting cities of the District were less than half the ten-year September average number, and the estimated cost of construction totaled only 15 percent of normal. BUILDING PERMITS IN TENTH DISTRICT CITIES PERMITS Albuquerque, N. M,.--·-··········· Colorado Springs, Colo.._.......... . Denver, Colo....... H:.itchinson, Kans ............ ·-········ Joplin, Mo... __ Kansas City, Kans ..................... Kansas City, Mo.·-····················· Lincoln, Nebr.·-····· Oklahoma City, Okla ................. O1naha, Nebr............................... Pueblo, Colo.·--··························· Salina, Kans ................................ Shawnee, Okla............................. St. Joseph, Mo Topeka, Kan Tulsa, Okl Wichita, Kans •............................ 1932 63 1931 71 47 54 499 37 2 19 14 33 100 48 73 73 39 8 13 23 37 62 64 Total 17 cities, Sept.·---········· ·· 1,088 Nine months.. _ ... 9,695 22 26 49 157 48 150 84 62 18 7 30 49 Il3 104 1,543 13,944 ESTIMATED COIT $ 1932 33,5°2 62,86o 292,325 3,09 1 4,93° 22,46o 310,800 23,771 104,444 195,200 10,911 4,227 1,76o 11,245 7,555 34,381 30,979 ----- 1931 f, 58,999 50,971 392,175 16,790 18,685 18,6o8 239,800 48,161 604,742 207,365 19,5 1 13,495 s 2,6oo 16,617 530,990 321,805 95,705 J 1,154,441 $ 2,657,023 io,745,492 39,381,486 8 THE MONTHLY RF.VIEW Business Conditions in the United States By the Federal Reserve Board l'!IIC(NT ODCIIII * 1~0 INDUSTRIAL PRODUCTION llO 1JO A.. no /,.- 110 I'~ 120 \ 110 '~ ,_-, 100 100 \ ,0 " ,,- '/\. IO 'lll '° IO WCI ms 19>2 IUI 19)0 1929 90 eo 60 -- so Index number of industrial production, adjusted tor seasonal variation. (1923-1925 average-100.) Latest figure, September, 66. , ucon POCDIT l10 IJ O FACTORY EMPLOYMENT I no ....... __.,,,, 100 I 10 I , .- 1 . IOO ' '-.. 10 . 'Ill 'JO -, "' .... eo so eo ~ l9Z7 ma 1929 19:10 '° so 1931 Federal Reserve Board's index of factory employment with adjustment for seasonal variation. (1923-1925 average=100.) Latest figure, September, 6o.J. ""COT l20 Pflll: Ct NT RAILROAD FREIGHT-CAR LOADINGS Industrial activity and shipments of commodities by rail increased from August to September by considerably more than the usual seasonal amount. There was also a more than seasonal increase in the volume of factory employment and payrolls. The general level of prices, after advancing for three months, showed a decline beginning in the early part of September. 120 Indexes of daily average number of cars loaded; adjusted for seasonal variation. (19231925 average= 100.) Latest figures, September, total 54, merchandise, 69. PRODUCTION AND EMPLOYMENT: Volume of industrial production, as measured by the Board's seasonally adjusted index, based on the 192.3-192.5 average, increased from a low point of 58 in July to 60 in August and 66 in September. The advance in September reflected chiefly large increases in activity at textile mills, shoe factories, meat packing establishments, and coal mines. In the steel industry, where activity had shown none of the usual seasonal increase in August, operations expanded considerably during September and the first three weeks of October to about 'lo percent of capacity. Daily average output of automobiles and lumber in September showed Ii ttle change from recent low levels. Factory employment increased from 58.8 percent of the 1923-2.5 average in August to 60.3 percent in September, according to the Board's seasonally adjusted index. Considerable increases were reported in the cotton, woolen, silk, hosiery, and clothing industries, and smaller increases at car building shops, foundries, cement mills, and furniture factories. In the automobile, tire, and electrical machinery industries employment declined. During the three months ending with September, value of building contracts awarded, as reported by the F. W. Dodge Corporation, was about the same as in the preceding three months, although awards are usually smaller in the third quarter. In the first half of October the daily average of contracts declined somewhat. DISTRIBUTION: Volume of freight carloadings increased by considerably more than the usual seasonal amount in September, reflecting chiefly larger shipments of coal and miscellaneous freight. Department store sales increased from the low level of August by somewhat more than the usual seasonal percentage. WHOLESALE PRICES: Wholesale commodity prices, as measured by the monthly index of the Bureau of Labor Statistics showed little change from August to September. During August and early September there was a general advance in prices followed by a decline which continued through the first half of October, when the average was '2 percent below the high point in early September and 1 percent above the low point of early summer. Substantial decreases occurred after the beginning of September in the prices of m any domestic agricultural commodities, including cotton, grains, and livestock, and also in prices of gasoline, nonferrous metals, and imported raw materials; while prices of wool, worsted yarns, coal, and lumber increased somewhat during this period. BANK CREDIT: During September and the first three weeks of October there were further additions to the reserve funds of member banks, arising from increases in the country's stock of monetary gold, from an unseasonal return flow of currency, and from issues of additional national bank notes. Member bank indebtedness to the reserve banks declined by more than $100,000,000 from September 7 to October 19 and their reserve balances increased by $180,000,000. During September and the first weeks of October reporting member banks in leading cities showed a further growth in investment holdings, largely of United States Government securities, but to some extent of other investments. Loans of reporting banks declined further in September. In the early part of October loans at banks in New York City showed an increase. There was considerable growth in Government deposits and in bankers• balances during the period. Time deposits also increased. IIICIOJ------;i'lc-::..,-,,.~'c""=:;a,Pj~ ~ + -----j~=--~ -r-~+--t-- --1~......q \ . J .+ - - l 1 ~ SOO 19%7 1721 1929 1930 19)1 soo Monthly averages ot daily figures. Latest figures are averages ot first 22. days in October. Money rates in the open market declined to lower levels during the first half of October, the rate on prime commercial paper being reduced from a range of '2.-'2 ¼ to a range of 1 ¾ -'2 percent, and the rate on 90-day bankers' acceptances from ¾ of one percent to ½ of one percent. Rates for call loans on stock exchange collateral declined from '2 percent to 1 percent.
@FedFRASER