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THE MONTHLY REVIEW Of Agriettltural, Industrial, Trade and Financial Conditions in the Tenth Federal Reserve District FEDERAL Vol. 20 RESERVE KANSAS CITY, BANK OF Mo., NovEMBER G ENERAL business conditions in the Tenth Federal . Reserve District showed some improvement in September, debits by banks to individual accounts increasing 8.5 per cent, retail trade 14 per cent, and wholesale trade 1.4 per cent. Building activity, which usually declines, expanded but the improvement did not extend to retail sales of lumber, which were lower. Sales of new paid-for life insurance declined. Business mortality continued at the lowest levels since 19'20. Flour mills enjoyed the most active demand for flour experienced in many months. Buyers, reconciled to higher prices and in need of flour, purchased freely, extending their commitments. At meat packing plants, beef slaughter increased seasonally and butcherings of hogs and sheep and lambs declined. Operations were reduced about half as compared to a year ago when large numbers of cattle and sheep were being slaughtered for the Government account. The output of bituminous coal increased by somewhat less than the customary seasonal amount and crude oil production declined about as usual. Marketings of alJ classes of grain but rye were smaller and all species of live stock but hogs larger in September than in August. Receipts of wheat, oats, rye, and barley were considerably larger than a year ago or the ten-year average for the season but those of corn were the lowest of record. Compared to last year's heavy marketings, occasioned by the drouth, receipts of all species of live stock registered sharp declines, marketings of hogs being conspicuously small. All grain prices advanced during the month as was also true of sheep and lambs, but cattle and hogs closed lower. Live stock returns show a considerable improvement over last year. Most row crops are backward and, although September weather conditions were quite favorable to development, an unusually early freeze in the northern half of the District the first week of October severely injured corn, grain sorghums, and dry beans. Hay and forage crops are plentiful except in a few drouth areas and stockmen are assured of an adequate supply of feed the coming winter. Recent rains over the greater part of the winter wheat belt have put the soil in good condition for seeding, and plant growth and early sown fields are up to good stands. In the dry areas of the southwest a large part of the intended acreage remains to be sown. Government restrictions being lowered, the acreage will be larger this: year than last. Member Bank Operations Total loans and discounts of fifty-one reporting member banks in leading cities of the District increased $2,014,000 during the four weeks' period ended October 9 to a new high for the year of $208,6o8,ooo as of that date. The increase was in "all other" loans as loans on securities dropped $913,000 1, KANSAS 1935 CITY No. II BUSINESS IN THE TENTH FEDERAL RESERVE DISTRICT Percentages of Increase, or Decrease (-), for September 1935 over August 1935 and September 1934 and for the first nine months of 1935 over the like period in I 934. 9 Months 1935 Sept. 1935 compared to compared to Banking Aug. 1935 Sept. 1934 9 Months 1934 Payments by check, 29 cities.................. 8.5 13.6 10.2 Federal Reserve Bank clearings.............. - 6.o 5.5 9.6 Business failures, number ......................_ 24.0 -13.9 -II.I Business failures, liabilities...................... 107.9 3.1 -38.3 Loans, 51 member banks·--·············-···· 1.0 2.6 Investments. 51 member banks.............. 2.3 10,0 et demand deposits, 51 member banks 1.8 13.7 Time deposits, 51 member banks·--····· - o.6 - 6.6 Savings deposits, 45 selected banks·--··· 0.9 8.o Savings accounts, 45 selected banks...... o. I 2.2 Distribution Wholesalers' sales, 5 lines combined ..... . 3.8 I I Retailers' sales, JI department stores.... 14.0 - 0.9 5-4 L~m ?er sales, I 55. retail yards .............. - -u.5 24.0 26.5 1 6.2 - 8.3 L1 fe insurance, wntten·--························· - 3.9 Building permits in 17 cities, value-...... 278.5 87.0 55.5 Production Flour......................................- - - - - 5.3 - 2.3 2.5 7.4 5.6 Crude petroleum·-····································· - 5.9 Soft coal.. .................................................. _ 17.4 -14.3 12.3 Zinc ore (shipped) Tri-State district...... 12.4 17.2 49.4 Lead ore (shipped) Tri-State district.... -44.9 3.0 13.2 - 6.o - 2.9 Cement·-······-············································ -35.2 Grain receipts, 5 markets - 5.5 Wheat.--·······-··-············-·························· -38.6 -55.8 Corn ................ ··········································- - 8.6 Oats.__ .. _....................... _...........................• 12 5·5 Live stock receipts, 6 markets -44.1 17.3 -37.3 Cattle...... •···········---······················ 13·7 -58.2 -43.1 Calves·-·····················································Hogs ............................................................ - 8.4 -56.1 -56.5 -n.6 22.I -31.6 Sheep ........................................................ 22.9 -29.2 3.3 Horses and mules .............. ·-·················-·· Meat packing, 6 markets 10.7 -39.I Cattle.......................................... ·- - ·········· -5 1 .3 Calves._....................................................... -56.2 -4o.9 7.5 Hogs .. ......................................................... . -12.7 -57-9 -59-5 - 8.o -34.I Sheep .......... - - - - ···························· -17.0 Stocker and feeder shipments, 4 markets -25.8 Cattle_ ..............................•........................• - 5.6 37.3 3.6 -I4.3 35-5 Calves·--···--·········· ······-······-··················-6o.2 -39.6 Hogs............................................................ -15.8 -22.7 89.1 -28.5 Sheep ... ··-··············--·-·---······················ to a total of $45;378,000, the lowest point in recent years. The banks enlarged their investment holdings $9,216,000 during the period, holdings of United States Government securities increasing $9,667,000 and securities fully guaranteed by the Government, both as to principal and interest, increasing $1,495,000, whereas holdings of other securities were reduced $1,946,000. The total of loans and discounts as of October 9 was 2.6 per cent smaller and that of investment holdings Io per cent larger than on October 10, 1934. Thi• Copy Released For Publication In Morning Newspaper,, October 30. 2 THE MONTHLY REVIEW Net demand deposits, up $9,036,000 between September I I and October 9, were '$63,027,000 larger on the latter date than one year earlier although '$27,694,000 smaller than on July 10 this year when they reached an all-time peak. Time deposits, which declined slightly in four weeks, were 6.6 per cent smaller on October 9 this year than on October 10 last year. Principal resource and liability items of the fifty-one reporting banks, as shown by the consolidated weekly condition statements as of the three dates of comparison: Loans and investments-total.. Loans and discounts-total._ __ Secured by stocks and bonds All other loans and discounts lnvestments-totaL_ ................ . U. S. securities direct.-.......... . Obligations fully guaranteed by the U. S. Government.. Other securities ....................... . Reserve with F. R. b ank............ Net demand deposits .................. Time deposits ...·-··· · - - - Government deposits.................. Oct. 9, 1935 Sept. II, 1935 '/,615,084,000 '/,603,8 54,000 208,6o8,ooo 206,594,000 46,291,000 45,378,000 163,230,000 160,303,000 406,476,000 397,260,000 240,612,000 23°,945,000 48,145,000 u7,719,ooo 100,633,000 522,227,000 I 55,343,000 46,650,000 119,665,000 103,049,000 513,191,000 l 11,505,000 56,335,000 10,340,000 Oct. IO, 1934 '/,583,8 58,000 214,208,000 56,488,000 l 57,720,000 369,650,000 242,892,000 iz6,758,ooo 84,988,000 459,200,000 166,292,000 19,643,000 Federal Reserve Bank Operations Bills rediscounted by the Federal Reserve Bank of Kansas City and branches for member banks, as shown by the weekly condition statement of October 9, exhibited an increase of $222,203 over the amount reported four weeks earlier, present holdings of $403,791, although small, being larger than on any previous reporting date since February 28, 1934. Holdings of bills purchased were relatively unchanged in four weeks and industrial advances were reduced slightly. The total of United States securities held by this bank, virtually unchanged since March 13, exceeds that of October IO, 1934, by $15,000,000, or 16.3 per cent. Member banks' reserve deposits declined 3.9 per cent between September I I and October 9 but on that date were 14.9 per cent larger than on October IO, 1934. Federal reserve note circulation, expanding $3,381,400 in four weeks, is, with two exceptions, March 8 and 15, 1933, the highest of record, exceeding by $18,015,850, or 15.5 per cent, the total as of October IO, 1934. Changes in the principal items in four weeks and fifty-two weeks are reflected by the weekly condition statements shown in the following: Oct. 9, 1935 Sept. 11, 1935 Oct. IO, 1934 Total reserves.........................-.... '/,205,809,978 '/,207,743,830 $181,992,548 Bills discounted·--·········-············ 403,791 181 ,588 180,592 Bills purchased ........................._. 126,581 126,464 159,350 Industrial advances ........- .......... 1,102,982 1,134,972 172,911 U. S. securities........................ .... I06,844,200 I06,844,200 91,844,200 Total bills and securities............ 108,658,554 I08,287,224 92,357,053 Total resources............................ 348,462,035 352,925,000 305,373,421 F. R. notes in circulation.......... 134,356,810 130,975,410 u6,340,960 Member banks' reserve deposits 170,763,525 177,636,562 148,563,879 The discount rate of the Federal Reserve Bank of Kansas City, on all classes of paper and maturities, remains unchanged at 2 per cent. Bank Debits Debits by banks to individual accounts, in twenty-nine cities of the Tenth District for the four weeks' period ended October 2, increased by 8.5 per cent over the total for the four weeks ended September 4 and were 13.6 per cent larger than the amount reported for the corresponding four weeks in 1934. The accumulated total of payments by check during the fitst thirty-nine weeks of 1935 was $8,801,208,000, exceeding the total for the same period last year by 10.2 per cent. PAYMENTS BY CHECK Per cent FouR WEEKS ENDED Change Oct. 3, 1934 Oct. 2, 1935 8,730,000 II.7 Albuquerque, N. M,·---············· $ 9,75 1,000 f, 4.8 3,203,000 Atchison, Kans.·--······················· 3,357,000 20,368,000 Bartlesville, Okla ..- ..................... 21,428,000 5.2 4,081,000 12.3 4,582,000 Casper, Wyo.·--··························· Cheyenne, Wyo ........................... 22.5 6,720,000 5,485,000 6.o l 1,871,000 Colorado Springs, Colo ............... 12,589,000 u8,968,ooo 13.0 Denver, Colo ............................... 134,421,000 26.3 Enid, Okla .....................- ............ 8,879,000 11,214,000 Fremont, Nebr.. _......................... 2,257,000 2,291,000 I.S 14.8 Grand Junction, Colo ................. 2,515,000 2,887,000 13.1 Guthrie, Okla ............................... 1,175,000 1,329,000 10,III,OOO 30.8 Hutchinson, Kans ....................... 13,221,000 3,801,000 Independence, Kani; ................... -47.7 1,988,000 15•7 Joplin, Mo ......... _........................ 8,467,000 7,3 15,000 10,080,000 Kansas City, Kans ..................... - 3.2 9,760,000 15.8 Kansas City, Mo ......................._ 248,736,000 :287,947,ooo 18.1 Lawrence, Kans ........................... 2,707,000 3,196,000 21,710,000 Lincoln, Nebr.. - ........................... 23,810,000 9.7 16.1 Muskogee, Okla ........................... 6,614,000 5,694,000 19•5 67,906,000 Oklahoma City, Okla ................. 81,170,000 7.0 Okm ulgee, Okla ........................... 2,329,000 2,491,000 8.8 121,617,000 Omaha, Nebr............................... 132,291,000 10.3 2,891,000 Pittsburg, Kans ........................... 3,189,000 12,518,000 5.8 Pueblo, Colo .. _............................. l 1,788,000 Salina, Kans ................................. 7,II8,ooo 9,431,000 3 2·5 26,252,000 4.0 27,305,000 St. Joseph, Mo.·-························· -II.4 13,988,000 12,387,000 Topeka, Kans.·--························· 81,266,000 20.4 Tulsa, Okla ..- ............................... 97,880,000 23·3 34,767,ooo 42,873,000 Wichita, Kans ......... •···········-······ - Total 29 Total 29 U.S. 270 U. S. 270 cities, cities, cities, cities, 4 weeks .......... $ 868,338,000 986,377,000 .,, 8,801,208,000 39 weeks .......... 7,987,95 1,000 4 weeks...... .... 26,194,368,000 31,842,316,000 39 weeks ...·-···· 295,662,256,000 268,345,817,000 13.6 10.2 21.6 10.2 Reserve Bank Clearings This bank and branches hand1ed 5,376,451 checks aggregating $840,919,000 for collection in September. These totals represent an increase for the month of I .8 per cent in the number of items handled but a decrease of 6 per cent in the dollar volume. Compared to September, 1934, increases of 10.3 per cent in items handled and 5.5 per cent in the amount were recorded. Check collections through the Federal Reserve Bank of Kansas City and branches at Omaha, Denver, and Oklahoma City: AMOUNT ITEMS September ........ August .............. Nine months ... . 1935 5,376,451 5,280,320 47,210,007 1934 4,875,082 4,860,092 45,585,7oo 1935 f, 840,919,000 894,135,000 7,467,755,000 1934 $ 797, 292,000 818,078,000 6,812,953,000 Savings Fractional gains in savings deposits and in the number of savings accounts during September were reported by fortyfive selected banks in leading cities of the District. Total savings deposits as of October 1 this year were 8 per cent larger than on the like date last year, whereas the number of depositors increased but 2.2 per cent. Savings accounts and savings deposits reported by the forty-five banks as of October 1 with comparisons: October 1, I935·-····································· September 1, 1935-................................. October 1, 1934·-····································· Savings Accounts 404,604 4o4,3o9 396,082 Savings Deposits '/,125,700,677 124,581,314 l 16,408,625 Failures Tenth District commercial failures in September numbered thirty-one, six more than in August, but the smallest for any September since 1920. Of this number, twenty-nine failures were listed as trading, one as manufacturing, and one as other- THE MONTHLY REVTEW .3 RETAIL TRADE AT 31 DEPARTME T STORES IN THE TENTH FEDERAL RESERVE DISTRICT STOCKS (RETAIL) SALES ACCOUNTS RECEIVABLE AMOUNTS COLLECTED STOCK TURNOVER Sept. 1935 Year 1935 Sept. 30, 1935 Sept. 30, 1935 September 1935 compared to compared to compared to September Year compared to compared to Sept. 1934 Year 1934 Aug.31,1935 Sept.30,1934 1935 1934 1935 1934 Aug.31,1935 Sept.30,1934 Aug.1935 Sept. 1934 IO.I - 11.9 10.7 2.7 .27 2.57 1.94 19.4 11 .8 .33 0.5 9·9 2.2 6.2 - 1.4 8.5 .33 .34 2.68 2.58 9.5 4.0 - I.7 9.7 Even 0.1 12.0 6.2 Even 2.6 .42 19.2 3.6 .43 3.12 3.11 16.7 I'l.4 .40 29.3 20.2 1.4 3.5 .43 3· 13 3.o7 - 5.0 10.9 -2.7 .30 10.4 7.0 16.4 2.7 - 7.0 - 4.0 .35 2·45 2.42 7.5 2.2 2. I .27 .29 2.17 2.16 I'l.6 0.9 -3-9 - 1.5 8.3 7.7 Stores Reporting Kansas City........ 4 Denver..... ·-·······-· 4 Oklahoma City.... 3 Tulsa.................... 3 Wichita ........ ........ 3 Other cities .......... 14 TotaL--·············- 31 - 0.9 5.4 9.7 - 0.4 .33 .32 2.58 2.37 NOTE: Percentage of collections in September on open accounts August 31, all stores reporting 40.6. commercial. The amount ofliabilities involved totaled $287,488, only slightly more than a year ago, at which time liabilities were the smallest of record. In the United States, the number of defaults recorded was the smallest for any September since 1920, except 1934, and the amount of indebtedness about the same as for the past three years. Business failures in the Tenth District and the United States, as reported by Dun and Bradstreet, Incorporated: UNITED STATES Number Liabilities 806 '$ 21,837,926 910 17,845,596 790 16,440,147 8,915 170,411,124 9,208 206,019,327 TENTH DISTRICT Number Liabilities September 1935····-············-·· 31 f, 287,488 August 1935---···················-···· 25 138,297 September 1934---···-·-··---36 278,952 Nine months 1935---·--····-· 329 3,008,980 Nine months 1934·---·-·--···· 370 4,876,96o Life Insurance Life insurance sales in the seven states whose areas or parts thereof comprise the Tenth District totaled ~h8,440,ooo for the month of September, a decline of 13.9 per cent from August and 6.2 per cent under September last year. Sales for the first nine months of 1935 amounted to $318,182,000 as compared with $346,853,000 for the like period in 1934, the decrease in sales for the year being 8.3 per cent. The sales totals by states, as reported to the Life Insurance Sales Research Bureau by companies representing 90 per cent of the total legal reserve ordinary life insurance outstanding in the United States: September 1935 '$ 3,680,000 3,923,000 Kansas_····-··-···-············--·· Missouri _ _ _ _ __ 11,892,000 3,479,000 Nebraska ...... ·-·········-·········· 62:2,000 New Mexico·---··················· Oklahoma.________ 4,196,000 Wyoming.. _ _ __ 648,000 August 1935 ,, 4,107,000 4,757,000 13,680,000 3,958,000 631,000 ,, 28,440,000 413,716,000 Colorado,_ _ _ __ Seven statcs.---············-···· United Statcs·--············-·· 5,026,000 September 1934 '$ 3,699,ooo 4, 274,000 13,181,000 3,394,000 599,000 4,621,000 856,000 549,000 ,, 33,015,000 456,397,000 '$ 30,3 I 7,ooo 399,687,ooo Trade RETAIL: Department store sales in September, as measured by the dollar volume of thirty-one reporting stores in cities of the Tenth District, increased 14.0 per cent from August, or less than the usual seasonal amount. As compared to September, Stores Report• ing Dry goods_______ 5 Groceries__ S Hardware--··---·-·- 9 Furnitur 4 Drug•-·····-·-·-·---- 7 - 1.6 Collections same month last year 40.1. 7.7 1934, a decrease of 0.9 per cent was recorded, owing partly to an unusually large volume of retail distribution at this time last year. Cumulative sales for the first nine months of 1935 as compared to the corresponding period in 1934 were consequently reduced I point, narrowing the increase to 5.4 per cent. Stocks of merchandise were enlarged 9.7 per cent during September, or somewhat more than the normal seasonal increase, but were 0.4 per cent under September 30, 1934. Collection percentages on open accounts remained . practically unchanged, the ratio of collections during September to amounts receivable at the end of August being 40.6 per cent as compared to 41.5 per cent for the month of August and 40.1 per cent for September, 1934. Installment collection percentages averaged 14.1 per cent in September, I 5.1 per cent in August, and 13.2 per cent in September last year. WHOLESALE: Distribution of merchandise at wholesale, as indicated by the combined dollar volume of five representative lines reporting to this bank, increased 1.4 per cent during September and was 3.8 per cent larger than in September last year. The increase over last September was the third consecutive increase for 1935 over 1934 and reduced the decrease in cumulative sales for the first nine months of 1935 to only I.I per cent under the like period in I 934. An analysis by individual lines shows that sales of dry goods and hardware declined, and groceries, furniture, and drugs increased as compared to August. A11 lines except dry goods and groceries showed increases over last September. Implement dealers reported a large increase in sales over last year, with collections on new business good but on old accounts past due as slow. Cumulative sales for the first nine months of 1935 over the same period in 1934 show increases of I.Z per cent for hardware, 17.3 per cent for furniture, and 2.1 per cent for drugs, whereas dry goods and groceries decreased I 1.3 per cent and 2.2 per cent, respectively. Merchandise inventories for the five lines combined increased 1.7 per cent from August 31 to September 30 and were 2.8 per cent larger than on September 30, 1934. Month-end stocks of dry goods and hardware decreased, both as compared to August 31, 1935, and September 30, 1934, whereas stocks of groceries, furniture, and drugs increased as compared to these reporting dates. WHOLESALE TRADE IN THE TENTH FEDERAL RESERVE DISTRICT SALES OUTSTANDINGS AMOUNTS COLLECTED Sept. 1935 Sept. 30, 1935 Sept. 1935 compared to compared to compared to Aug. l 935 Sept. I 934 Aug. 31, 1935 Sept. 30, 1934 Aug. 1935 Sept. 1934 8.9 - 5.8 8.6 - 7.9 - 5.9 - 4.4 - 8.7 -II.I 5.4 - 2.7 8.o 9·4 1.2 Even - 6.o 10.4 - ..p 5.5 12 •8 20.6 46.7 7.8 19.4 39·5 8.x 6.8 3.3 8.6 - 4.8 14.9 STOCICS Sept. 30, 1935 compared to Aug. 31, 1935 Sept. 30, 1934 - 4.9 -10.0 s., 10.4 - 5.8 2.6 4.8 - 6.3 15.1 16.6 THE MONTHLY REVIEW Lumber Lumber sales at 155 reporting retail yards in the Tenth District declined 11.5 per cent in volume from August to September but were 26.5 per cent larger than last September. Dollar sales of all materials increased 3.5 per cent during September and were 28.6 per cent above a year ago. Stocks of lumber on hand at the close of September were approximately the same as one month earlier but 5.1 per cent greater than one year earlier. September collections averaged 39.6 per cent of amounts receivable at the close of August as compared to the August percentage of 42.4 and the September, 1934> percentage of 34-4September business at these yards is here compared with that for August and for September, 1934, in percentages of increase or decrease: Sales of lumber, board feeL .... _ _ __ Sales of all materials, dollars ........ _. _____ _ Stocks of lumber, board feet.·-·- ···•--·-•--Outstandings, end of month.·-----···-·-- September 1935 compared to August 1935 September 1934 -11.5 26.5 J.5 28,6 0.5 5,1 4.0 21.I Reports to the National Lumber Manufacturers Association indicate that lumber production for the year to September 28 was 16 per cent above that for the same period in 1934. Shipments and orders booked to September 28 were about 6 per cent above the output for the same period and about 29 per cent above shipments and orders booked to September 29, 1934. Building Building departments of seventeen Tenth District c1t1es issued 1,780 permits during September for an estimated expenditure of '$2,999,729. The number of permits issued and the estimated cost thereof was the greatest for any September since 1930. Compared to last September, permits increased by 55.2 per cent, with the estimated cost increasing 278.5 per cent. The number of permits issued this year to October I is 39.1 per cent, and the estimated expenditure 87.0 per cent, greater than for the same period of 1934. BUILDING PERMITS IN TENTH DISTRICT CITIES EsTJMATED CosT PERMITS 1935 1 935 1934 1934 81 83 $ 65,336 $ 68,318 Albuquerque, N . M.·--·-··········Cheyenne, Wyo... 20,430 64 27 97, 276 Colorado Springs, Colo._. ___ 38,270 13 4,73° 39 2 55 380 1,460,367 Denver, Colo,----···-·-···-··-····· 157,4 15 16 22 12,700 141,150 Joplin, Mo·--···········-··--···- ··- · 28 Kansas City, Kans ..................... 26,510 19,265 35 Kansas City, Mo 322,100 192 152,000 248 195 118,249 117 47,5 19 Lincoln, N ehr.·-··························· Oklahoma City, Okla ................. 140 41,840 226,795 79 127 77,660 91 145,556 Omaha, Nebr·-·····-······-·········Pueblo, Colo. 20,229 38 24,563 57 I2 II 8,270 3,100 Salina, Kans.... ·-······-··············-· Shawnee, Okla... 18 7,86o 13 4,35° I2 St. Joseph, Mo 14,880 13,265 27 Topeka, Kans 61 5,220 58,815 27 Tulsa, Okl 109 131,705 67 94,196 Wichita, Kans,-.. 178 130,391 31,874 65 Total 17 cities, September.. ___ 1,780 Nine months __ 13,214 1,147 9,500 t, 2,999,729 18,337,575 t, 792,475 9,805,788 Flour Milling Operations at Tenth District flour mills improved in September, running time averaging 65.9 per cent of full-time capacity as against 57.9 per cent in August. Production of flour for the month totaled 1,976,183 barrels, or 99 ,765 barrels more than in the preceding month, but 46,258 barrels less than in September, 1934, and 197,000 barrels, or 9 per cent, less than the ten-year average for the month. Flour buying was active throughout the month, millers averaging a better run of new flour business than for quite some time. A vigorous upturn in wheat and flour prices, with buyers reconciled to continued strength in the ma1 ket, greater advances in premiums than in cash wheat quotations, and low stocks, particularly of bakery flour, were the compelling factors in the improved business. Several large sales were reported but the bulk of the business consisted of a multitude of small to 5,000 barrel orders. Shipping directions were good and bookings are further extended than for some time. Millfeed returns were somewhat better than expected. Export trade was of a routine character. Flour production at the principal milling centers of the District, as estimated from the weekly reports of southwestern mills to the Northwestern Miller: September 1935 Barrels Atchison ..............................113,264 Kansas City.......................... 479,167 185,536 Salina ......... ·-·····- ······--····178,540 Wichita..·-···-···· ·····-···········Ou tside............................... -. 1,019,676 August 1935 September 1934 Barrels Barrels 100,403 124,449 51 3,4 2 3 474, 2 72 1 45.675 161,032 180,698 165,230 1,073,664 960,013 TotaL......................... _........ 1,976,183 1,876,418 2,022,441 *United States.--················· 5,603,158 5,075,797 5,846,613 *Represents about 60 per cent of the total output in the United States. Millfeed demand was somewhat irregular for bran but genera1ly good for shorts. Interest improved and prices strengthened late in the month as grains and high protein feeds advanced. Grain !viarketing Receipts of all classes of grain but rye at the five principal markets of the District declined from August to Septem her and, with the exception of corn and kafir, were substantially heavier than a year ago. Marketings of wheat, oats, rye, and barley exceeded the ten-year average for September, arrivals of wheat being the largest for the month since 1931, rye and barley since 1930, and of oats since 1925. Receipts of corn continued exceedingly light, the monthly total falling below a million bushels for the first time in fifteen years of record. September receipts of grain at the five markets: Oats Bushels Rye Bushels Barley Bushels Kafir Bushels 16,900 728,000 405,000 240,800 1,328,000 566,000 271,500 1,500 24,700 105,000 172,800 609,600 10,500 35,000 Corn Bushels Hutchinson .... Kansas City._. Omaha ............ St. Joseph. ___. Wichita·--···-· Wheat Bushels 1,759,050 8,230,400 2,346,768 900,800 2,784,000 Sept. 1935...... Aug. 1935·-····· Sept. 1934 .... _ 9 Mos. 1935._. 9 Mos. 1934.. _ 16,021,018 26,079,049 6,674,250 85,784,256 90,782,400 948,250 1,037,700 6,938,000 18,417,960 41,665,000 6,250 2,623,500 5,744,ooo 722,000 11,865,6oo 5,263,000 163,800 1,500 3,900 --------270,300 202,900 93,400 79 2,900 55,800 71,000 6o,100 69,6oo 595,6oo 1,824,000 573,300 5o3,7oo 439,6oo l /249,300 937,650 All grain prices advanced in September with the gains extending well into October, wheat displaying exceptional strength with premium margins widening. Cash grain prices at Kansas City as of the dates indicated: Oct. 15 Sept. 30 Aug. 31 Sept. 29 Sept. 30 Sept. 30 1935 1935 1935 1934 1933 1932 No. 1 dark hd. wheat, bu. $1.09½ $1.07 ' .99 $1.04.½ $ .85½ $ •47 No. 2 mixed corn, bu. __ .77½ .78½ .76½ .80½ .43½ .26 No. 2 white oats, bu .....30.½ .31½ . .29½ .56 .36 .18 .53 .52 .47 .94 .65 .36 No. '1. rye, bu·- ··········-·-· No. 2 barley, bu.·-···.52 .51½ •49 .88 .45½ .22 I.26 1.15 1.71 l.09 .58 No. 2 kafir, cwt·-········-· 1.22 THE MoNTHLY REVIEW Agriculture CROPS: September weather was very favorable for the growth and maturity of late crops and October 1 indications were for somewhat higher yields of corn, tame hay, dry beans, tobacco, and sugar beets in the District than promised on September 1. Department of Agriculture estimates for grain sorghums, broom corn, white potatoes, sweet potatoes, peaches, and grapes were lowered slightly. Irrigated crops developed significantly. Freezing temperatures the first week of October did considerable damage to late planted corn, of which there was a large acreage, growth was checked, and there will be a considerable quantity of soft corn this year as a result. Grain sorghums were also injured badly, the greater portion of the crop failing to mature. Colorado reported dry beans severely damaged by frost, with some fields in the east central and northeastern dry land areas a total loss. Very little corn has been harvested to date as the crop is maturing later than usual. Sorghum feed is being cut and, a~thoug~ fodder tonnage ranges from normal to poor, grain yields will be very low. The acreage is much larger than usual this year. The harvest of broom corn is well advanced and p~oduction for the District is placed at 31,300 tons compared with 16,700 tons last year and 38,140 tons as the average for the five years, 1928 to 1932 inclusive. Abandonment has been heavy in the dwarf area with yields and quality low. Sugar beets give promise of the highest yields since 1930 and slicing has commenced. Oklahoma reports the condition of pecans October 1 at 69 per cent of normal, with production estimated at 20,000,000 pounds, a record crop, almost doubling last year's yield. Cotton picking is under way but, as the crop is two to three weeks late, ginnings to date are the smallest reported in many years. In contrast to 1934, acreage abandonment has been light. Tenth District production of cotton is estimated at 6'.12,000 bales this year against 263,000 bales last year. The acreage of cotton remaining for harvest on October 1 and estimated production for the past three years (acreage and production in thousands, ooo omitted): ESTIMATED PRODUCTION (500 lb. bales) ACREAGE FOR HARVEST Final Final 1935 2,628 108 320 1934 2,539 92 288 1933 2,932 84 337 1935 1934 75° 31 7 85 89 242 1933 1,266 94 3,056 2,919 27,241 3,353 1,059 648 1,613 30,036 II,464 9,636 13,047 Oct. Oklahoma______ _ New Mexico ___ _ Missouri __________ _ Three states____ United States.__ 1 28,652 Oct. 1 Oct. Oct. 1 Wheat seeding, well advanced District where soil conditions are are up to a good stand, has been of the wheat belt by a shortage 1 2 53 in the eastern half of the good and early sown fields delayed in the western part of soil moisture, and much .5 of the intended acreage remains to be sown in that area. The eventual acreage for the District will be greater than a year ago as Government restrictions have been reduced and only 5 per cent of the base average under contract must be held out of production this year. STO~KS OF GRAIN ON FARMS: Meager supplies of corn, triple the amount of oats, and slightly less wheat on farms in the District on October 1 this year as compared to the like date last year are disclosed by estimates of the United States Department of Agriculture. Stocks of wheat show a loss of 5.6 per cent, a heavy reduction in Kansas being offset in part by increases in the other major producing states. Holdings of old corn are very small in all states as last year's drouth resulted in a virtual crop failure throughout the District. The 1935 oats harvest being one of the best of record farm stocks of this grain are extensively held. ' Stocks of gram on farms in the seven Tenth District states and the United States on October 1, as estimated by the Crop Reporting Board of the United States Department of Agriculture, in thousands of bushels, ooo omitted: Wheat 1935 Corn 1934 2,830 30,286 8,512 11,087 107 12,325 833 Colorado______ Kansas ___________ Missouri ____________ Nebraska __________ New Mexico____ Oklahoma________ Wyoming __________ 2,806 20,695 10,223 14,516 259 12,333 1,471 Seven states_____ United States___ 62,303 65,980 257,242 229,100 1935 Oats x,435 1935 3,776 12,649 16,901 30,189 26,128 55,496 65,766 597 1934 IOI 227 1,733 4,506 1 934 1,756 12,392 12,770 10,710 9 202 156 1,187 22 65 3, 145 12,694 1,743 6,800 60,696 87,889 266,740 I 58,753 962,035 52,189 446,287 29,152 124 FARM LABOR AND WAGES: Higher farm wages and a closer adjustment of supply and demand of farm labor than have existed since 1931 are reported generally. Kansas reports wages as somewhat higher than a year ago but only about 50 per cent as high as in 1929, with a shortage of labor existing in some localities. Farm wages in Missouri are the highest since 1931. In Oklahoma the supply of farm labor is placed _at 104 per cent of n_ormal and the demand at 74 per cent, with the October 1 ratio of supply and demand standing at 141 per _cent, the lowest since October, 1929, which ratio compares with 209 per cent a year ago. PURCHASING POWER: The United States Department of Agriculture's index of the ratio of prices received by farmers to prices paid advanced 2 points between August 15 and Septembe~ 15 to 86 per cent of the 1909-1914 average, or within I point of the previous high since June, 1930, established in February and April this year. The present ratio is 4 points above a year ago and 32 points above the lows of June, 1932, ~nd February, 1933. The gain for the month in farm purchasmg power was a two-way affair, the index of farm prices adva?cing 1 point to 107 per cent of pre-war and that of prices paid by farmers for commodities bought declining I point to THE ESTIMATED PROD(!CTION OF SEVEN TENTH DISTRICT CROPS, BASED ON THE OCTOBER I CONDITION Reported by the United States Department of Agriculture, in thousands of units, ooo omitted, except broom corn 'i.:1:::10······--·---Missouri.______________ Nebraska.___________ New Mexico______ Oklahoma.__________ Wyoming____________ CORN TAME HAY Bushels_ Est. Fmal Tons . Est. Final 1935 12,728 33,31J 85,994 124,874 3,861 29,172 2,156 1934 3,368 10,576 26,482 21,363 1,088 11,644 655 Seven states______ 292,098 75,176 United States _____ 2,213,319 1,377,126 1935 1,866 I,840 2,941 2,856 330 647 1934 1,164 861 1,510 I,421 283 496 ~~ u,622 76,707 6,405 52,269 GRAIN SORGHUMS Bushels_ Est. Final 1935 2,320 1934 306 BROOM CORN Tons_ Est. Fmal 1935 1934 2,900 15,665 3,615 4,800 2,800 1,958 4,260 5,46o 14,800 833 148 1,694 7,392 5,500 2,500 18,200 9,8oo ___ ___ 44,463 124,426 13,988 34,542 1,500 SUGAR BEETS Short Tons Est. Final 1935 1,918 31,300 54,300 16,700 31,500 100 Lb. Bags Est. Final 1935 1,523 1934 279 36 578 ___ ___ 1934 1)566 DRY BEANS 549 132 450 68 66 ~~ ~~ 3,072 8,453 2,549 7,481 2,607 14,005 663 10,369 WHITE POTATOES Bushels Est. Final 1935 1934 14,875 2,880 8 3, 54 7,800 2 5,700 I,480 8 1,3 o 3,450 1:~ ;:~ •~ 2 , 790 35,209 16,26o 365,995 385,421 6 THE MONTHLY REVIEW 12.5 per cent of the 1909-1914 average. By commodity groups, prices of grains, truck crops, meat animals, dairy products, and poultry and eggs increased and those of cotton and fruits declined. Live Stock The six principal live stock markets of the Tenth District received the year's biggest run of cattle and calves in September. Commercial supplies of cattle were the largest for the month in five years although cattle numbers fell 44.1 per cent and calf numbers 58.2. per cent below the heavy marketings of a year ago when Government drouth relief purchases swelled arrivals. The seasonal movement of grass steers from Oklahoma and Kansas pastures reached its peak during the month, with indications that mid-October will probably mark the end of the movement. Most offerings were in good flesh and the general condition was the best and prices the most satisfactory in several years. Hog receipts dropped 8.4 per cent as compared to August and 56.1 per cent as compared to September, 1934, to, June, 1935, excluded, the lowest monthly volume in sixteen years of record. Arrivals of sheep and lambs, the largest since April but the smallest for the month since 192.2., were 31.6 per cent less than a year ago, no deductions for Government purchases of ewes in 1934 taken into consideration. The six markets received 12.,094 horses and mules in September, 9,843 in August, and 17,079 in September, 1934. Cattle and hog prices declined in September but lamb values advanced and the broad upturn from a year ago in all live stock prices was maintained. The slump in cattle prices was uneven, long fed cattle were scarce, and prices on best beeves held up fairly well but range cattle were in liberal supply and stocker and feeder values broke sharply. The month's top for beef steers at Kansas City was $12. this year against $10.6o last year and the advance in other grades, particularly stock cattle, was considerably more pronounced. Most of the break in hog prices, ranging from 50 to 65 cents per hundredweight, occurred the final week of the month in the face of small receipts. A light shipping demand and consumer resistance to prevailing prices depressed the market. The September top of $n .65 was paid on September 4. The September, 1934, top was $7.65. Range lambs commenced moving to market in volume and, with short supplies anticipated and offerings in good flesh, packers and feeders bought freely. Higher prices for wool and competitive meats were also strengthening influences and range lambs closed 65 cents and native lambs 2.5 cents higher. The top for native lambs was $10 and for western lambs $9. 7 5 this year as against $9. Io for both classes last September. Breeding ewes were in healthy demand at all times. Hay supplies being large and forage crops having made remarkable growth the past six weeks, an abundance of cheap live stock feed is assured and stockmen are encouraged to increase cattle feeding operations. A material increase is expected in all areas, particularly in the western corn belt states where drouth conditions compelled a great reduction in last year's operations. Shipments through public stockyards do not reflect the movement, the July to September outgo being the smallest of record, but the movement of cattle direct from growing areas and through auction markets has been heavy. Lamb feeding operations, however, are expected to show a substantial reduction with ultimate numbers the smallest in six years. A few of the 1934 drouth states may feed more lambs this year than last. Lamb feeding operations in Colorado and the Scottsbluff areas of Wyoming and Nebraska are expected to show reductions of 10 to I 5 per cent from the small number fed last season. According to the Division of Crop and Live Stock Estimates, fall and winter range and pasture feeds are good in western states with only limited areas having a short supply of feed. Pastures in western Kansas, western Oklahoma, and parts of southeastern Colorado and northeastern New Mexico arc short and wheat pastures are late. Cattle and calves arc in good flesh and above normal condition and the condition of sheep is the best since 1932.. Grass fat cattle are moving to market, with the movement from those areas having an abundance of feed somewhat restricted. A large proportion of the lamb crop being fat, feeder lambs are scarce and most of them have been sold. Marketings of old ewes have been heavy with ewe lambs being retained for replacement purposes. Meat Packing Packers purchased more cattle and calves and fewer hogs and sheep at the six principal market centers of the District for slaughter in September than in August. Compared to the heavy operations of a year ago when many cattle and calves and old ewes were slaughtered for the Government account, cattle slaughter was off 51.3 per cent, calf slaughter 56.2 per cent, and sheep and lamb slaughter 34.1 per cent. Hog slaughter, direct purchases included, was 59.5 per cent under a year ago, 67 per cent below the ten-year average, and the lightest for any month of record. Emphasizing the extraordinary shortage of hogs, the Government's report of live stock slaughtered under Federal meat inspection in the United States during September showed the September total was 12..9 per cent less than in August and 44.1 per cent below a year ago. The commercial slaughter was, with the exception of September, 1917, the smallest monthly total recorded in over thirty years. The commercial slaughter of cattle was the largest for the month since 1926, exceeding last year's total by 4 per cent and the ten-year average by 10.5 per cent. Calf slaughter, although slightly under a year ago, was 17 per cent above normal. Sheep and lamb slaughter was 4.7 per cent above a year ago and 9.6 per cent above the average. SEPTEMBER MOVEMENT OF LIVE STOCK IN THE TENTH DISTRICT RECEIPTS Kansas City...·-·····-· Omaha __ _ _ St. Joseph _______ _ Denver________ Oklahoma City___ Wichita ______ _ Cattle 200,019 149,347 37,476 47, 2 83 -44,362 26,426 Calves 40,621 14,179 8,898 5,450 16,798 7,702 Hogs •sx,902 66,424 41 ,526 18,586 23,336 13,644 STOCKERS AND FEEDERS Sheep 95,o56 216,984 59,261 363,458 8,839 4,1~ Cattle 77,499 50,536 5,980 13,985 Calves 14,933 3,699 766 743 Hogs 3,3o6 839 1,561 24 Sheep 38,010 80,220 15,101 101,156 PURCHASED FOR SLAUGHTER Cattle 77,514 82,726 25,645 14,626 19,557 10,016 Calves 26,453 10,480 7,674 3,986 11,767 3,964 Hogs •67,152 50,637 36,232 12,926 20,971 12,882 Sheep 50,714 JI8,668 40,747 26,702 5,181 3,643 September 1935____ 504,913 93,648 245,418 747,792. 148,000 20,141 5,730 234,487 230,084 64,324 200,800 2 45,665 August 1935______ 430,369 82,378 267,926 612,265 107,801 I4,86o 6,802 123,939 207,829 59,853 230,ou 296,034 tScptcmber 1934--_ 903,833 223,999 558,995 1,093,490 156,847 23,501 14,4o6 328,127 472,922 146,803 495,369 372,975 Nine months 1935 - 3,1o6,068 594,977 2,969,579 5,449,697 678,34-4 109,972 55,z77 653,184 1,6o5,970 447,438 2,448,881 2,8o6,985 tNinc months 1934_ 4,953,122 1,046,212 6,832,967 6,168,179 914,039 1o6,144 91,481 844,988 2,636, 476 756,542 5,812,188 3,050,190 •Includes 36,841 hogs shipped direct to packers' yards. tReceipts include Government drouth relief purchases of cattle, calves, and sheep. 7 THE MONTHLY REVIEW Federally inspected slaughter- of meat animals (compilations as supplied by the Bureau of Animal Industry arc of commercial slaughter only, Government relief purchases being excluded): September 1935·---···-··- August 1935·--·····-········· September 1934---•·········· Nine months 1935..·--····· Nine months 1934·---····· Cattle 885,782 875,070 851,363 6,744,355 7,271,918 Calves 457,894 472,184 462,703 4,186,136 4,6 14,763 Hogs 1,452,926 1,667,540 2,600,937 18,625,557 31,822,419 Sheep 1,548,865 1,665,449 1,479,068 13,104,014 11,775,739 Cold Storage Holdings Storage stocks of all classes of meat, lard, and eggs in the United States on October 1 were smaller than a year ago and the five-year average for the date. Cold storage holdings of lard showed a shrinkage of 64.7 per cent, miscellaneous meats 53.3, beef 48, pork 47, lamb and mutton 28.5, and eggs 6.8 per cent as compared to this time last year. Tota] meat inventories, representing a new low for any date since 1917, when official records commenced, were off 48 per cent for the year and were 41 per cent under the five-year average. Stocks of beef were 9.1, pork 46.1, lamb and mutton 44.9, eggs 12.6 per cent below and holdings of creamery butter and cheese were 23.7 and 10.7 per cent, respectively, above the average. Holc;ings of beef, poultry, and cheese increased between September 1 and October 1, whereas stocks of all other commodi . ties declined, net withdrawals of lamb and rrutton being contraseasonal. Cold storage holdings in the United States on October 1 , with comparisons, as reported by the Bureau of Agricultural Economics: *Oct. I Sept. 1 Oct. 1 Oct. 1 1935 1935 1934 5-Yr.Av. Beef, lbs.·---·················-······················ 48,145 47,292 92,575 52,975 Pork, lbs............................................... 277,711 325,249 524,220 515,045 Lamb and mutton, lbs...................... 1,377 1,730 2,400 2,499 Poultry, lbs ..-....................................... 39,498 34,9II 55,262 48,016 •*Turkeys, lbs,_...................................... 6,433 9,006 3,041 3,074 Miscellaneous meats, lbs.·---············· 49,067 50,467 104,967 69,478 Lard, lbs ............................................._ 45,188 53,537 128,054 103,960 Eggs, cases............................................ 6,343 7,373 6,803 7,260 Eggs, frozen (case eq uivalent).......... 2,838 3,217 2,856 2,784 Butter, creamery, lbs.·----················· 148,666 156,855 125,047 120,178 Cheese, all varieties, lbs..................... II4,91 7 105,851 127,363 103,846 •subject to revision. **Included in Poultry. (ooo omitted). NOTE: Meats held for the account of the Federal Emergency Relief Administration are not included in the above. Coal Production of bituminous coal in this District during September, as estimated from the weekly reports of the United States Bureau of Mines, was 1,540,000 tons, an increase of 17.4 per cent, or somewhat less than usual over August. Compared with production in September, 1934, there was a decrease of 258,000 tons. Output at mines in the District during September and August this year and September, 1934: Colorado·--··································· Kansas and Missouri ................. . New Mexico·--··-························· Oklahom----···················· Wyoming...................................... •sept. 1935 Tons 446,000 435,000 93,000 167,000 399,ooo Aug. 1935 Tons 379,ooo 390,000 104,000 110,000 329,000 Sept. 1934 Tons 573,000 478,000 109,000 191,000 447,000 Petroleum The output of crude oil for the five oil producing states' of the District, as estimated from the weekly reports of the American Petroleum Institute, averaged 724,700 barrels daily in September which, compared to the Bureau of Mines' estimates for August this year and September last year, reflect a reduction of 20,500 barrels per day for the month and an increase of 49 1700 barrels per day over a year ago. Each of the five states shared in the increase for the year and, Colorado excepted, in the decrease for the month. Gross and daily average production of crude oil in the five states and the United States is shown in the following: GROSS PRODUCTION •Sept. 1935 Aug. 1935 Barrels Barrels 14,46o,ooo 15,357,ooo Oklahoma·--··············•·················· 4,314,000 4,613,000 Kansas.·-··················--················ Wyoming...................................... 1,130,000 1,174,000 136,000 134,000 Colorado. __ ··································· 1,822,000 1,701,000 New Mcxico·---··························· Sept. 1934 Barrels 13,861,000 3,716,000 1,111,000 II0,000 1,448,000 20,246,000 75,810,000 Total five states .......... •···-·········· 21,741,000 23,100,000 Total United States ........ ......... -. 82,073,000 84,816,000 DAILY AVERAGE PRODUCTION •sept. 1935 Aug. 1935 Barrels Barrels 482,000 495,400 Oklahoma·--··················-············· 143,800 148,800 Kansas......................•-················· Wyoming..................................... . 37,700 37,900 4,300 Colorado ... _._··············-·-············ 58,800 New Mexico_·-··-···················· Sept. 1934 Barrels 462,000 124,000 37,000 4,000 48,000 745, 200 2,736,000 675,000 2,527,000 Total five states.......................... 724,700 Total United States .........·-········ 2,736,000 •Estimated, American Petroleum Institute. Posted prices for mid-continent crude oil, in effect for over two years, remain unchanged at schedules ranging from 76 cents to 1,1.08 per barrel per degrees gravity. Field operations continue active as companies endeavor to increase their reserves. Zinc and Lead Shipments of zinc concentrates by Tri-State mines and tailing mills for the five-weeks' period ended October 5 were 12.4 per cent larger than in the preceding five-weeks' period ended August 31 and 49.4 per cent larger than in the like period of 1934. Although more mills were in operation during September than at any previous time this year, a price deadlock between producers and smelters restricted sales. A number of mil1s voluntarily closed the final week of September in an effort to limit zinc ore production to a demand basis and surplus stocks were substantially reduced the following week as a result. Lead ore deliveries, consistently below production, declined sharply in five weeks but showed a 3 per cent increase over the corresponding five weeks last year. The tonnage and value of zinc ore and lead ore shipments from Missouri, Kansas, and Oklahoma: Oklahoma.......................................... Kansas.............................................. Missouri............................................ Zrnc ORE Tons Value 33,875 $1,020,791 8,131 246,048 1,369 41,350 5 Weeks ended Oct. 5, 1935·-··· 43,375 $1,308,189 5 Weeks ended Aug. 31, 1935·-··· 38,584 1,138,407 LE AD ORE Tons Value 2,605 $ I19,79J 764 34,674 100 4,576 3,469 $ 159,043 6,292 271,346 3,369 120,599 29,442 1,139,422 26,008 1,076,687 Total six states............................ 1,540,000 1,312,000 1,798,000 Total United States.................... 24,886,000 26,112,000 27,772,000 *Estimated from the weekly reports of the United States Bureau of Mines. 5 Weeks ended Oct. 40 Weeks ended Oct. 40 Weeks ended Oct. During the first nine months of 1935 mines in the District produced 13,228,000 tons of soft coal as against 11,775,000 tons mined in the first nine months of 1934, representing an increase of 1,453,000 tons, or 12.3 per cent. Zinc ore advanced 1,r and lead ore 1,2 per ton to new highs for the year of $31 and 1,47 per ton, respectively. At this time last year zinc ore was bringing 1,24 per ton and lead ore $34 per ton. 6, 1934---· 29,042 711,180 5, 1935·-··· 271,846 7,466,849 6, 1934._... 231,944 6,426,875 8 THE MONTHLY REVIEW Business Conditions in the United States By the Board of Governors of the Federal Reserve System PU:CfHT __ C-::-Tl-ON- ---,---=; 'u 140 r'--.---,N-DU_S_T-R!A_L_PR_OOU \~o 130 l - - - i - - - - - - i l - - - t - - + - - - + - - - + - - - - - 1 1 30 12() 1'4--"\.-f------1----+--+--+- - + - - - I 120 110 l----1--1 - - - - - - l l - - - - - - l - - - - + - - + - - - + -----1 110 100 to 90 80 70 60 l---l---f------11-----'1.:l-t-'f-- - - ! - - + - - - I 60 ___,__ ____.__ ____.__ ____.__ __, 50 50 .......____J.___----;_ 19W 1931 1932 1933 1934 1335 1929 Index of industria l production, adjusted for seasonal variation. (1923-1925 average=100.) Latest figure: September, 88. p(lt CENT PtltCCNT 1~0 1~0 FACTORY EM?LOYM:::NT 110 100 110 I/ '\ ICO '\ 90 ' 80 70 ;>, ~ _t:__' "\, J_ I 50 80 70 - GO Index of factory employment, adjusted for seasonal variation. (1923-1925 average=100.) Latest figure: September, 81.9. -~r---r---_D-:El-':::-:-:AR::-:TM=-="EN_IT,.....S_T_OR_E,__S_A_LE_S_-r--.:..:::, =z~o 250 200 1 - - - 1 - --1------ll------l - .~u,/tt/o,, ~ ~ . , .,;..,.,. - Y/1/h01,1fs,4s0J>alNj1.1SltTWttl The value of construction contracts awarded, as reported by the F. W. Dodge Corporation, was about the same in the six weeks ending October 15 as in the previous six weeks, reflecting an increase in residential building, partly of a seasonal character, and a slight decline in other types of construction. DISTRIBUTION: Freight carloadings showed an increase of more than the usual seasonal amount in September and increased further in the first half of October. Department store sales also increased by more than the estimated seasonal amount in September, and for the third quarter ·the average of the Board's seasonally adjusted index was 80 per cent of the 1923-1925 average as compared with 75 per cent a year ago. Indexes of daily average value of sales. (19231925=100.) Latest figures, September: adjusted, 82; unadjusted, 86, -- ~- COMMODITY PRICES: The general level of wholesale commodity prices, as measured by the index of the Bureau of Labor Statistics, showed little change during September and the first three weeks of October. Prices of grains decreased in the middle of October, following a considerable advance, while prices of silk, hides, and copper increased throughout the period. ~ - ~ -~W _HO_LES _ A_L_E_P~R-,c-Es~ - ~ - 120 t----+---+---t---1-----,1---<-- 1 110 80 ,-,+--;-----+--+-----l 50 ~ Factory employment showed a seasonal increase between the middle of August and the middle of September. The number employed at foundries and in the lumber, nonferrous metals, and machinery industries increased substantially, while in the automobile industry there was a considerable decline. At cotton mills employment showed a seasonal increase and at silk and rayon mills there was an increase of more than the usual seasonal amount, while employment at woolen mills and shoe factories declined. -; ---1-------; 200 0 ~~~-~-~---'~--'----'-----' 1929 1930 1931 1932 1933 1934 1835 120 PRODUCTION AND EMPLOYMENT: Output at factories and mines, as measured by the Board's seasonally adjusted index of industrial production, advanced from 87 per cent of the 1923-1925 average in August to 88 per cent in September, reflecting chiefly increases in the output of iron and steel, lumber, cotton and silk textiles, and anthracite, offset in part in the total by declines in the production of automobiles and woolen textiles. At steel mills activity increased from 49 per cent of capacity in August to 51 per cent in September and during the first three weeks of October continued at about the September level. At automobile factories a sharp decline in output during September, as preparations were made for new models, was followed in the early part of October by a rapid advance. Lumber production continued to increase in September. In the cotton textile industry, where output had been at a relatively low level since April, activity showed a marked increase in September and there was also an increase in output at silk mills, while at woolen mills, where activity has been at an exceptionally high level for several months, there was a decline. 90 -V \ cT ___ 60 Industrial production and employment increased in September and distribution -of commodities to consumers was in larger volume, reflecting in part seasonal influences. The_general level of wholesale prices showed little change. 1---t----,1--------;~--;---+-~ ~ ~ 30 1929 1930 1931 IS32 1933 1934 l93S Indexes of the United States Bureau of Labor Statistics. (1926=100.) By months, 1929 to 1931; by weeks, 1932 to date. Latest figures, October 19: farm products, 79.5; foods, 85.6; other commodities, 78.4. BANK CREDIT: Reserves of member banks continued to increase during the five weeks ending October 23, reflecting chiefly imports of gold from abroad. At the end of the period reserves in excess of legal requirements at $2,930,000,000 were at the highest level on record. At weekly reporting member banks in 91 leading cities adjusted demand deposits increased by $40,000,000 during the four weeks ending October 16, while United States Government deposits declined and inter-bank balances rose to a new high level. Loans on securities decreased by $40,000,000, while other loans, including commercial credits, increased by $80,000,000. Yields on both short-term and long-term Government obligations increased from the last week in August to the first part of October and subsequently declined. Other short-term open-market money rates remained at previous low levels.
@FedFRASER