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THEMONTHL BULLETIN
Covering Conditions in the Tenth Federal Reserve District
FEDERAL l{ESERVE BANK OF KANSAS CITY
For the Information of Member Banks and Business Interests of this District
ASA E. RAMSAY, Chairman Board Directors
and Federal Reserve Agent
C. K. BOARDMAN, Assistant Federal Reserve Agent
and Suretary
6------------------·-------------------a
VoL. 5 No. 11
Kansas City, Mo., November 15, 1920
HERE appeared to be nothing reflected by
the October reports to indicate any decided
change in the tendency toward a general rea<lj us tment of business. Price reduction
continued throttgh the month and by November 1
there were some evidences of a settling down on the
newer levels, giving rise to a feeling that business was
beginning to assume new proportions.
'l'hc level of prices paid producers in the United
States for the principal crops decreased about 19.1 %
during October, as officially reported by the Bureau
of Crop Estimates, U. S. Department of Agriculture.
In the . previous ten years the usual October decline
in farm prices has been 3.8%. The report states that
on November 1 the index figures on prices was about
28% lower than a year ago, 25.4% lower than two
years ago, and 14.8% higher than the average of the
past ten years to November 1.
Bradstreet's index figures on commodity prices iq,dicate that 111 October 58 different commodities out
of 106 were reported cut, and that every group of
commodities contributed more or less to the decline.
'I'he publication, in summing up the situation, says:
"The decline in October in the total index number of
$1.23 and the decline in the nine months of $5.20 mark
the most precipitate decreases for a month and nine
months ever recorded."
The price reductions on merchandise, while long
looked...ior, seemed wlien they finally came to have unsettled the public :to the extent of causing a great
many people to hold off buying, expecting prices to
go still lower. As a result, purchases during October
did not mount to the heights they were expected to
attain when consumers awakened to a realization that
at last they could buy goods for less. Rather, there
were declines in October trade reported from many
merchants and in many lines. But under the quickening influence of crisp freezing weather sales at the
end of the month and in early November were reported to be taking on a good deal of activity with
indications that the greater volume of Christmas buying this year would be done in the two or three weeks
immediately preceeding the holiday season.
Retail merchants have, with series of bargain sales,
succeeded in unloading the bulk of their high cost
merchandise and have been buying in such quantities
as to enable them to keep their customers supplied.
Wholesalers, while pursuing something like the same
THIS coPv RELEASED
FOR PUBLICATION
On Receipt•
policy of caution with reference to ac~umulation~ of
stocks have undertaken to 1 force busmess-parttcularly i~ wearing apparel, dry goods and kindred lines
- -by widely advertised price reduction -l<'s These
sales to this date in November are attracting country
merchants to the cities in large numbers and in conscqucucc a larg r volume of goods is reported as moving countryward.
The declared intention of many farmers to hold
their wheat for higher prices than those prevailing
since the big slump set in, has made the grain markets the center of public interest and discussion.
Movement of wheat to the markets in October under
the lowered prices was in larger volume than in October of last year and also larger than in October, 1918.
But since the "wheat holding" movement was not
officially in effect until October 25, it is regarded as
too early to approximate results.
'I'here was a big shrinkage in the movement of live
stock to the markets in October which, according to
a<lviccs, was not wholly due to fewer animals on farms
and ranges. There is an abundance of feed for animals in this part of the country which, with grain
prices down, is an inducement to farmers to hold
mqch of their stock on feed for later marketing in a
more finished condition.
Crude oil production scored a high mark in this
district in October, with an average flow of approximately 411,000 barrels daily from Kansas and Oklahoma wells. Zinc and lead ore production was held
to market requirements by operators curtailing mining activities and leaving no large accumulation of
surplus. Metal mining in Colorado was at a low ebb
as a result of low prices of ores and high cost of prodttction. The coal mine~ were operated during the
month at 74.5% capacity, and there are no longer
fears of a coal shortage or famine this winter.
Milling, packing and some lines of manufacture
slowed down considerably on account of slow demand
and movement of their products. Building activities
in October showed some improvement over September, but were little more than one-half the volume
of October, 1919. The labor supply situation was
somewhat easier. There is some unemployment reported in industrial centers, but probably no more
than usual for this ea. 011.
There was a further improvement in the transportation situation in the month under review and less
complaint of car shortage.
.
2
THE
MONTHLY
FINANCIAL.
The demand for loans from farming and stockraising communities has been tremendous during the past
month, with the result that the reserve city banks of
this district in the face of rapidly declining deposits
have found it necessary to frequently decline to accept further rediscount offerings from their country
correspondents. It is apparent that the diminishing
deposits and increasing loans of country banks have
been largely caused by the inclination of farmers to
hold their grain. With the November 15th payments
made by sugar companies to the sugar beet grower-,,
there should be considerable liquidation in the Denver zone and a portion of the Omaha zone, and with
three or four weeks o( normal marketing of grain in
the balance of the 10th Distri ·t, ·onditions should be
vastly improved.
'I'be slat mcnt of Lhc Federal Reserve Bank of ran sas City and its branches at Omaha, l) ·11 er and
Oklahoma City, as of November 12, showed a ratio
of 39.9% total reserves to net deposit and Federal
Reserve Notes liabilities combined. Total gold reserves were $68,907,548 and total gross deposits were
$130,385,370. Bills discounted secured by Government
War obligations were $31,744,928 and other bills discounted were $80,763,217, making the total of bills
discounted $112,508,145.
Showing of Member Banks.-A combi11ed statement
of eighty-three selected member banks in this district,
as of N ovembcr 5, shows loans aggregating $545,535,000 a· compared with $546,425,000 as of October 1 a
reduction of $890,000. Net demand deposits on which
reserve is computed were reduced between the two
dates mentioned $9,922,000, while time deposits in the
same five weeks were increased $1,636,000. The combined statement of the eighty-three selected member
banks for November 5 and October 1, follows:
Oct.1, 1920 Nov. 5, 1920
Total U. S. Securities owned ..... $ 51,879,000 $ 50,185,000
Loans ( exclusive of discounts secured by U. S. War obligations) 20,678,000
21,261,000
Loans secured by stocks and bonds
other than U. S. Securities. . ... 79,144,000
81,142,000
All other loans and investments. . 44.6,60:1,000
443,132,000
Reserve balance with F. R. Bank. 45,626,000
43,610,000
Net demand deposits on which r serve is computed .............. 404,8,19,000
394,927,000
Time deposits . . . . . . . . . . . . . . . . . . 97,393,000
99,029,000
Collections.-The slowing down of collections from
the previous good record, which was noted in September reports, continued through October under
pr sure of st.rang demand for money. 'The report
indi ·ate the decline in collcctio11s ha-; h ·en gradu,il
~ince May. Country merchants report that although
thi year's crop are large, the break in prices and
interference with the marketing of product is slowing
BULLETIN
=====================
up collections. Wholesalers report payments to them
by retailers are not so good as at this time either last
year or in 1918. Wholesalers, according to Credit
Clearing House reports, indicate that indebtedness has
been increasing since early in September and at the
beginning of November it had reached the high mark
of November, 1919, ·which was the highest reached
since December, 1916.
Clearings.-Bank clearings for October reported by
c1caring houses of this district aggregated $1,837,320,341, as compared with $1,867,451,914 in Septembt.r.
Taking the total of all clearing houses reportin g for
this year an<l last year, there is an apparent decrease
of about 8.8% in October, 1920, a-; compared with
October, 1919. The clearings, with per cent of increase or decrease, follow:
Oct., 1920
Oct., HI W
Pei.
Change
Kansas City, Mo ..... $ 928,586,7:m $ 1,1 IG,:W(i,,1!) I
Omaha, NrlJ..
:WG,2!.!(;,!)f,(i
2:u,,:m ,261
DPnv r, 1 010 • • •
I9,t ,GW ,H 17
IG1, 110,00::
Oklahoma City, Okla. 142,ioo,oo:!
70,:::~i,a (;
Wichita, Kans ......
58,611,!)58
m,DGl,:1:Jb
Tulsa, Okla. . . . .....
57,266,09!)
r,:~,] 07,J (i,j
St. Joseph, Mo .......
57,208,361
75,551,412
Muskogee, Okla.....
24,003,727
22,294,406
Kansas City, Kans ....
23,146,417
3,532,165
Lincoln, Neb. .
20,506,801
27,990,068
Hutchinson, Kans ..
14,412,000
13,201,000
Topeka, Kans. . . ....
13,448,166
17,929,937
Cheyenne, Wyo .. ..
8,699,372
7,040,730
Joplin, Mo . . .
7,842,000
8,179,000
Grand Island, Neb .•.
6,691,983
Okmulgee, Okla.....
5,689,423
5,233,859
Independence, Kans ..
5,235,751
Colorado Spgs., Colo.
4,696,234
4,728,913
Pueblo, Colo. . .
4,585,538
3,3,15,031
McAlester, Okla .....
4,286,800
Atchison, Kans ... ..
3,700,574
a,841,11:3
Hastings, Neb ......
3,051,782
a,448,78a
Fremont, Neb . . . . . .
2,889,661
:{,606,75~
Guthrie, Okla. . .
2,361,672
2,480,261
Miami, Okla. . .
2,104,434
Parsons, Kans. . . . ..
2,084,286
1,960,800
Lawrence, Kans ...
2,083,257
2,119,365
Lawton, Okla .......
1,881,129
1,188,899
.
...
Totals
-JG.7
2a. 1
I .J
D.2
13.7
07.
-21.3
07.6
555.:3
-26.7
09.2
-2 1.9
23.5
-04.1
1
08.7
-00.7
37.1
-O'tn
- tl .fi
-19.:)
- 05.0
06.~
-01.7
58.2
.......... $1,837,320,341 $ 1,994,097,431
*-08.8
Ten Months .. ..... 15,456,389,902 14,105,866,157
09.6
*Percent computed on cities reporting for October of both
years.
BUSINESS FAILURES
Business failure in October in this <lbtric t, according to Dun's report, numbered 41 with $775,366 of
liabilitie , which compares with 27 failures and $301,861 of liabilities in the corresponding month last year.
For the first ten months of 1920 business failmc:-:
numbered 354 with $3,859,433 of liabilities, as compared with 216 failures and $3,564,814 of liabilities
report cl for the first ten months of 1919.
tl'hi · i a
somewhat r markable showing when it is rc·dizcd th: t
in this district transaction, in ten month .;; report ,c]
by the clearing hou ·e a sociations aggregated $15,456,389 ,902.
THE MONTHLY BULLETIN
MERCANTILE.
Purchases by retailers from wholesalers at the trade
centers of this district declined perceptibly in October from the purchasing activities of September, and
on the whole they were considerably below purchases
in October, 1919. The percent of decrease for both
periods varies accordingly as different lines are a-ff ected by seasonal demands.
Price cutting sales by wholesale dealers in wearing
apparel, dry goods and kindred lines stimulated buying by retailers. While these purchases generally
were in small lots, due to uncertainty about future
prices, the aggregate of so many purchases was a
large volume of trade, both in quantity of merchandise and in money volume. With supplies more plentiful and prices down, some of the wholesale millinery houses report a larger volume of trade than in
October of last year, while others report a decreased
volume.
'J'hc whole ·ale grocery trade is reported fairly active
with lower prices except on cg-gs and dairy products,
sales rcporte(l in October being about 9% below Septc111 bcr and 9% below October, 1919. Drug supplies
appare11tly arc more readily obtained at this season
and October sales were reported 12% larger in Kan~as City than one year ago and about the same as last
year in Oklahoma City.
Manufacturers and wholesalers in this district report furniture sales in October about 22% below sales
in September and the same percent of decrease as
compared with October, 1919. It is reported by wholes,llers that eastern manufacturers of furniture arc
sending out new lists quoting prices 10% to 20%
below previous lists.
The wholesale hardware trade was 16% less than
in September and 1.6% less than in October a year
ago, according to the combined reports of houses reporting. Wholesalers report deliveries more prompt
now than for some time and that most items can be
obtained in reasonably short time. Many cancellations are reported, and both wholesalers and retailers
are buying cautiously.
Retail Trade.-Retail trade in October was somewhat "spotty." That is, in some of the cities sale:-:.
were heavy and in others light-due, it may be said,
to weather conditions or else to the attractiveness of
prices at reduction sales advertised by dealers to force
trade. The cool weather at the end of the month
proved a stimulus to the clothing trade. \i\Thile a
number of retail dry goods houses reported sales for
the month slightly better than in September, the same
reports showed a decrease of 3% to 5% as compared
with sales a year ago.
The combined reports of department stores in leading cities of the district covering business in the
month of October reflect trade conditions:
Percentage of net sales during October, 1920, compared with net sales during· same month last
year .................................... Dec. 1.03%
Percentage of net sales thfa season from July 1 to
Oct. 31, 1920, compared with net sales during the
same pel'iod last year ...................... Inc. 5.3%
3
Percentage of stocks at close of October, 1920, compared with stocks at close of same month last
year . . ................................... Inc. 20.3 o/o
Percentage of stocks at close of October, 1920, compared with stocks at close of Sept., 1920 .... Dec. 2.7%
Percentage average stocks at close of each month this
season (commencing with Jan., 1920), to average
monthly net sales during same period........ 330.3%
Percentage outstanding orders (cost) at close of October, 1920, to total purchases (cost) during calendar year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.2%
Retail merchants generally are endeavoring to "unload during the remainder of the year," according to
the reports. And "with every condition unfavorable,"
some of them report that they are "doing an increasing business."
•
BUILDING.
October reports from seventeen cities in this district showed an increase of $1,063,563 in the estimated
cost o( buildings for which permits were issued in
that month, as compared with the low record for September of this year. The October total, however, is
48.7 Jo below tl1e record for the month of ctober in
1919. For the ten months of 1920 now ended, building activities, as measured by estimated cost of buildings permittecl, is 20.6% ahead of the activities of
1919.
The reports of seventeen cities for the month of
October showing the number of permits issued and
estimated cost for October, 1920, with percent of i1~crease or decrease as compared with the reports from
the same cities in October, 1919, follow:
Permits
Kansas City, Mo ............
Tulsa, Okla.
............
Omaha, Neb ... ........... .
Oklahoma City, Okla. .....
Denver, Colo.
...........
Wichita, Kans. . . ......... .
Lincoln, Neb.
...........
Okmulgee, Okla.
. .......
Topeka, Kans. . . ...........
Muskogee, Okla.
........
Pueblo, Colo. . . ............
Colorado Springs, Colo .......
St. Joseph, Mo ..............
Kansas City, Mo ............
Cheyenne, Wyo. . . .........
Leavenworth, Kans .. .......
Joplin, Mo.
.............
266
187
93
147
338
128
58
37
55
20
78
42
72
42
21
3
7
October, 1920
........... 1,594
October, 1919
........... 1,875
Ten Months, 1920 .. ...... . 16,841
Estimated Pct. Gain
Cost
or Loss
- 58.2
$ 1,017,050
22.3
664,685
630,830
-60.9
459,108
-62.6
-51.4
366,250
-37.6
265,012
159,702
-27.7
124,750
-75.0
120,090
101.3
114,840
47.6
110,000
190.9
105,430
70.6
61,715
-73.1
38,310
-53.1
31,963
-25.9
23,000
360.0
13,100
-92.0
$ 4,305,835
-48.7
8,392,659
61,578,352
20.6
The situation with regard to both prices and supply
of lumber and other materials is somewhat easier at
this time, and as efforts are being put forth in cities
c111d towns to meet housing demands, builders are inclined to view the coming year's building activity
rather hopcf u11y. The reports indicate that the building of home~, as well as many other construction projects, have Leen held back ince the war on account
of high material and labor costs.
THE
4
MONTHLY
AGRICULTURE.
Weather conditions through October were generally
favorable for a continuation of harvesting fall crops,
except here and there where rains to some extent retarded work. Soil conditions, improved by the October rains, were excellent for plowing and seeding.
Killing frosts, with freezing weather and cold rains
and snows at the end of the month, stopped the
growth of vegetation over the greater portion of the
district.
Corn.-The season has been generally favorable for
drying and the reports at the end of October indicated
that the bulk of the corn in the states of this district
was practically matured and in condition for cribbing.
Very little frost damage is reported, although considerable corn was down in places and the harvest was
progressing slowly. Oklahoma reported some injury
to unharvested fields in low lands hy heavy rains.
The quality of the corn is good and the yield is large.
Wheat.-Prospects arc good for the next harvest,
according to rrports from the larger wlicat produci11g
areas of this district. Seeding is practically complete
and all except the very late sown wheat is up and
making good stands. In sections of the Missouri Valley where there is an exceptionally heavy growth of
early planted wheat some leaf rust is observed. The
Hessian fly and chinch bug are reported in some Missouri fields. Reports of the acreage of winter wheat
sown this fall have not been made to this date, and
no estimate of increase or decrease in the winter area
can be given.
BULLETIN
by the growers earlier in the season and the market
demand very poor. Much of the crop of commercial
potatoes is being stored by growers.
Apples.-Harvesting of apples is now practically
completed in all parts of this district. Prices have
slumped, the Colorado report saying that growers are
receiving only $30 per ton for orchard run bulk apples.
Hay.-With an unprecedently large yield the mar~
ket is reported dull and prices low. Some of the alfalfa mills in the Arkansas Valley in Colorado are
said to have closed down because of small demand
for meal.
Sugar Beets.-Harvesting of sugar beets i1:. Colorado, Wyoming, Western Nebraska and Kansas is
about over. The yield is larger than ever before and
there is a larger per cent of sugar content in the beets
this year than was reported last year.
Sorghums.-Grain sorghums arc yielding large
crops of both grain and forage, says the Oklahoma
report. The harvesting of grain sorghums is practically completed in that state, as well as in Kansa : -;,
where the crop is also very large.
GRAIN MOVEMENT AND PRICES.
Cotton.-The Oklahoma report as of October 30
says: "Fields are still white with unpicked lint and
less than half has been picked thus far. Opening of
the bolls and picking have been retarded, but picking
has been resumed. The supply of pickers is still inadequate."
The movement of wheat to the markets of this district in October was about 3% larger in volume than
the wheat marketed in October of last year. The reports of the grain exchanges at Kansas City, ©maha
and ·wichita place the combined receipts of wheat at
the three markets at 11,642,650 bushels, which compares with 11,276,100 bushels received in October:
1919. Other markets which reported receipts of wheat
by car lots disclosed about the same percentage of
increase. With the exception of 1916 and 1914, the
wheat receipts for the month were the largest October receipts in a 10 year period.
Potatoes.-Digging of the late crop of potatoes is
about completed and the quality is generally good.
Yields in Colorado are said to be less than expected
Compared with the heavy marketing of wheat in
September, however, the October receipts declined
20%. While this is attributed largely to the drop iu
RECEIPTS AND SHIPMENTS OF GRAIN (BUSHELS) AT AND FROM KANSAS CITY, OMAHA AND
WICHITA DURING OCTOBER, 1920, AND 1919
RECEIPTS
Kansas City
1919
1920
6,056,100
Wheat .. .............. 6,667,650
495,000
Corn .. ................ 351,250
Oats .................. 885,700
793,900
Rye .. ................ 89,100
59,400
145,500
*Barley .•
84,000
*Kafir . . .............. 123,200
80,300
.............
Omaha
1920
3,480,000
763,000
738,000
262,900
169,200
1919
3,168,000
929,600
928,000
134,200
91,200
Wichita
1920
1919
1,495,000
2,052,000
15,000
25,000
3,000
5,000
10,000
2,000
Three Markets
1920
1919
11,642,650
11,276,100
1,129,250
1,449,600
1,626,700
1,726,900
362,000
193,600
314,700
175,200
125,200
80,300
SHIPMENTS
Wheat . . . ............. 5,116,500
Corn . . . . . . . . . . . . . . . . . . 221,250
Oats . . . . . . . . . . . . . . . . . 313,500
Rye . . . . . . . . . . . . . . . . . . 49,500
,:,Bal'ley . . . . . . . . . . . . . . . 66,300
*Kafir . . . . . . . . .. . . . . . . 78,000
5,669,700
237,500
569,500
G,600
67,600
'13,000
3,154,000
627,200
948,000
207,900
95,400
3,186,000
845,600
1,118,000
117,700
127,800
*Wichita not reporting on barley and Omaha not reporting on kafir.
640,000
10,000
3,000
10,000
2,000
1,200,000
12,000
6,000
8,910,500
858,460
1,264,500
267,400
161,700
80,000
10,055,700
1,095,100
1,682,500
124,300
195,400
43,000
THE
MONTHLY
Milling.-The flour mills in this territory were operated at an average of about 62% of capacity during
October, as compared with an average of about 86%
of capacity in October, 1919. The output for four
full weeks in October of the mills at Kansas City,
Omaha and of 92 interior mills, computed from the
Northwestern Miller's reports, follows:
prices, it is recalled that the slump in wheat receipts
between September and October in 1919 was about
40% at the markets of this district.
The market reports to the date of this Bulletin do
not disclose definitely the effect on the grain movement of the so-called "wheat strike" which was announced by the National \IVheat Growers' Association
as taking effect on October 25. Receipts at the Missouri river terminals since then have been particularly
large, due more to heavier export business than to
any improvement in domestic or milling demand, but
it is asserted that the bulk of the increased receipts
is from stocks hel<l by country elevators and buyers
and does not reflect any great volume of recent deliveries by farmers. The reports seem to indicate that
a larger proportion than usual of farmers are holding
wheat for marketing in the winter and spring, or for
higher prices, though it is apparent that many farmers
are inclined to let as much of their wheat go at prevailing prices as will enable them to meet their financial ohlirration ..
October, 1920
Kansas City . . . . . . . . . . . . . . . . . 255,000
Omaha . . . . . . . . . . . . . . . . . . . . . . 47,000
92 Interior Mills . . . ........... 1,104,160
October, 1919
343,400
89,270
1,529,989
Total Barrels ................ 1,406,160
1,962,659
Fluctuations in wheat prices had a somewhat depressing effect on milling activity during October, as
there was an absence of heavy flour purchasing activity even though prices were weaker. The end of the
month, however, brought slight improvement to the
flour trade, a majority of the mills reporting a better
dcman(l for flour, though not in large quantities. It
is reported that, with rcdnction in the rate differential, there is a better export inquiry, although it has
not as yet resulted in heavy sales.
Thl'. slump in wheat prices which set in during the
month of September continued, with some interrupt ions through October. No. 1 dark hard wheat, cash
~ales of which averaged $2.29 at Kansas City on October 1, dropped to an average of $2.05¾ by October
22, but with the "wheat strike" taking effect on October 25, cash wheat sales took an upward turn to an
average of $2.22 by October 29. With demand slow
and not equal to the supplies, there were further declines in prices in the first week of November, with
cash No. 1 dark hard wheat down to $2.00,½.
Efforts by brokers to sell Canadian 95% flour tn
bakers in Kansas City have resulted in few sales, for
the principal reason that it does not mix or blend with
the flour regularly used by the bakers.
Flour prices at Kansas City have generally followed
the trend of the wheat market, as indicated by the
following quotations on hard wheat flour at the dates
mentioned.
Oct. 2
Patent .......... $11.30®11.46
Strajght ........ 10.50@10.80
First Clear . . . . . 9.00@ 9.60
Receipts of corn in October were in le ·ser volume
than in the corresponding month last year. Only a
few cars of new corn were received. With excellent
weather for maturing the new crop the markets were
weak all through the month. Prices for the month.
were downward, No. 2 white dropping from 98c on
the opening day to 87c on the 29th.
Oct. 30
$11.10@11.25
10.20@10.50
8.75@ 9.25
Nov. 6
$10.50@10.70
9.75@10.00
8.25@ 8.50
Flour receipts at Kansas City in October were
47,775 barrels against 130,325 barrels in October, 1919.
Shipments for the same month were 278,850 barrels
as compared with 444,600 barrels in the corresponding
month last year.
The millfeed market showed considerable improvement at the end of the month, but buying was confined largely to local sales with no large outside inquiry.
Oats were in about the same volume as a year ago
and prices at the end of the month were 3 ¼c below
the opening price 011 No. 2 white.
AV
s
BULLETIN
AGE CASH SALES OF WHEAT, CORN AND OATS AT KANSAS CITY ON DATES
MENTIONED IN CENTS PER BUSHEL
Oct.1
Oct. 8
Oct.15
Oct. 22
Oct. 29
Nov.5
Dark Hard Winter ................................. 229
Hard Winter ..................................... 222
Red Winter . . . . . . . . . . . . . . . ..................... 232
210
200½
214
216
214½
232½
205¾
199
207½
222
214¼
224
200½
303
222
95
87
89
84
88
93
83½
85
78
56½
52½
54¾
55
Wheat
No. 1
No. 1
No. 1
Corn
No. 2
White ........................................... 98
~~: ~ ~i~~;-::
85
::::::::::::::::::::::::::::::::::.. ::::: 94½
0
Oats
No. 2 White ............................ . .............. 58
54½
THE MONTHLY
6
LIVE STOCK.
Receipts of cattle at the western markets in October were 4.7% less in number than in September and
38.2% below the receipts in the corresponding month
in 1919. Receipts of calves also declined heavily, the
October total being 21.3 % below September's total
and 28.5% below the month's record a year ago. Hogs
were in somewhat more lib eral supply. October marketings were 6.2% larger than the September marketings, but 19.4o/o less than the number shown on the
record for October, 1919. Sheep receipts also were
larger in October than in September by 6%, and 7.6%
below October, 1919. The October receipts follow:
Cattle
Kansas City . . . 227,952
Omaha . . . . . . . 181,225
St. Joseph. . . . . 51,154
Denver . . . . . . . 70,597
Okla. City . . . . 29,601
Wichita . . . . • . 23,138
Totals, 6 markets:
Oct., J920 ..... 583,667
s pt., 1920 .... 612,608
Oct., 1Dl9 . . . . . 9'16,706
10 mos., 1920 .. .4/141,464
10 mos., 1919 .. . 5,422,615
Hogs
Calves
50,980 156,138
92,961
10,296
90,019
7,750
15,619
3,930
28,836
6,639
21,958
Horses &
Sheep Mules
145,515
4,063
328,298
1,116
63,169
1,292
565,840
916
1,614
184
2,810
419
79,596 ·105,558 l,107,2•1G
7,!)90
D6,075 :rn1,741 1,0,11,10:1 1.1,,1:!R
105,794 60:J,,[77 l,l!)!J,:1r,o 2G,019
663,774 6,95J,7!l!l 6,!~91,1G8 rn:1,269
692,322 8,262,614 7,a96,671 158,072
Prices.-With a limited supply of good corn fatted
killers at the markets prices held to the highest levels
of the year and season for that class. Top prices at
the Missouri river markets were above $17.00 during
the month, reach ing $17.70 in the week of October 12.
Values on corn fed cattle at the end of the month,
however, were $1.00 @ 1.50 lower on the better gradec:
than at the close of September. Prices on cows and
heifers and all butcher grades were depressed the early
part of October, but the latter part of the month found
the market more active with values on the upturn .
The supply of stockers and feeders was liberal considering the volume of receipts, feeders selling at $8.00
up to $12.40 and stockers selling at $5.00 up lo $9.65.
Choice veal calves early in the month sold aronn<l
$15.00 @ 16.00, but late in the month prices were
forced down $2.00 @ 4.00 lower than at the close of
September.
Prices of hogs during October declined and finally
reached the lowest figure for the year, bulk sales being
at $12.75 @ 13.25.
The sheep trade was slow and uneven during the
month and there were no great changes in price;;.
Final prices of sheep were 25c to $1.00 higher than in
September and $1.00 to $1.50 lower than a year ago.
BULLETIN
Packing Operations.-Packers' purchases of cattle,
calves, hogs and sheep for slaughter in October declined about in the same proportion as the market
supply of animals fell off. The total purchases at the
six markets for October, with comparative figures,
follow:
Cattle Calves
Hogs
Kansas City . . ..... ... .. 104,220 22,118 109,979
2,391
72,429
Omaha ................. 74,418
5,071
75,412
St. Joseph . . . . . . . . . . . . . . 28,598
2,882
13,823
Denver . . . . . . . . . . . . . . .. . 13,003
24,659
3,691
Oklahoma City •......... 13,298
20,413
Wichita . . . . . . . . . . . . . . . . 7,881
Total, October, 1920 . . ..... 241,418
Total September, 1920 .... 362,737
Total October, 1919 ....... 401,157
36,153
73,346
74,623
316,715
423,790
435,452
Sheep
79,220
73,917
42,898
27,922
294
895
225,146
529,016
349,617
PETROLEUM.
Production of crude oil in Oklahoma and Kansas,
which was around 400,000 barrels daily in the summer months, was maintained through October and
into lhe month of November at an estimated average
l)[ 411,875 barrels daily.
'fhe Oklahoma fields wcr ~
reported as having held clos1,; to tlteir high seasonal
r cord while Kansas gained in production from 104,500 barrels daily at the first week of October to 107,000 barrels daily at the first week of November, due
chiefly to flush output of new wells in Marion county.
For the two states the estimated October production
is here shown, compared with production figures for
September of this year and October of last year, ia
barrels of 42 gallons :
Oct., 1920
Oklahoma ........... 9,509,250
Kansas .............. 3,258,875
Sept., 1920
8,985,750
3,037,500
Oct., 1919
7,133,875
2,755,125
Total Barrels ..... ... 12,768,126
12,02!\250
9,889,000
\i\Tyoming fields, reported to this date, showed little
change in crude oil production, the output being
around 32,000 to 35,000 barrels daily for the thirtyone days of October. These figures, and also the
Oklahoma and Kansas figures on estimated production, are subject to revision when the U. S. Geological Survey report for October is made public.
Development operations in October showed generally good results, considering the fact that bad roads
are beginning to retard work, and that financial depression which is reported to have hit speculative
enterprises has also affected to some extent the activities of many of the producing concerns. According
to Lhe reports for October good gains in daily new
production were made in the fields of this district, al
#
RANGE OF PRICES ON CERTAIN GRADES OF LIVE STOCK AT KANSAS CITY
AT DATES NAMED
Week Ending
Choice Beef Steers Butcher Cattle
September 28
........................ $16.25@17.60
$6.00@13.25
October 5 .............................. 15.75@17.16
5.76@12.40
October 12 ............................. rn.25@17.60
6.75@12.25
October 19 ................ .. ..... ..... 16.10@17.36
5.26@12.10
October 26 .......................... . . 16.00@17.25
5.75@12.50
November 2 ............................ 16.00@J 7.00
6.40@13.25
November 9 ............................ 15.00@16.40
5.60@12.40
Feeder Cattle
$8.00@12.25
8.00 @11.75
8.00@11.90
7.75@12.00
7.85@12.25
8.00@12.40
7.25@11.85
Bulk
Stocker Cattle
Hog Sales
$4.75@9.50
$16.25@16.90
4.50@9.25
13.75@1'1.75
4.50@9.25
14.00 < 14.70
4.25@9.2!>
1:3.90 @14.<10
4.25@9.50
12.00@12.90
4.50 @9.65
12.75@13.25
4.00@9.10
12.85@13.15
THE MONTHLY
though there was only a slight increase in the number of completed wells. The summary follows:
Wells
Completed
Oklahoma . . . . . . . 767
Kansas . . . . . . . . . . 2f S
Wyoming . . . . . . . . :.;-:October, 1920 ..... 1,060
Sept., 1920 ....... 1,048
October, 1919 ..... 1,039
Bbls. Daily
Rigs & Wells
New Production
Drilling
70,358
2,024
20,840
499
4,540
556
95,738
83,917
73,234
3,079
3,099
2,624
The reports from the various fields would indicate
that the oil industry is feeling some of the depression
that is now affecting other industries, <.~11e to apprehension about f utnrc prices of refined products during
the month of October. It is pointed out, however, that
the demand for fuel oil from factories and steam
plants is steadily increasing, because of the high price
of coal and the lesser labor expense of firing with fuel
oil, while the recent slump in demand for kerosene
whjd1 came from over-buying in foreign markets· is
giving way under a 8tronger domestic demand fur
keroc;enc for use in heating stoves in cities and towns
where tlic gas s11pply is becoming- weal·er. Casoli11 ·
is !->ltuwi11 c;· wcah1c ss be<. .1usc of large stocks l:tid i11
hefure tile rerc11t change in freight rates ;rnd a di s pu~iti m on the part of some refrner-, to make prices to
move gasoline rather than hold it in stock. The retail
tank station bm,incss this year to date is reported a~:
about 40% larger than it was last year in this district.
Considerable apprehension is exhibited among oil
operators and refiners over a lack of interest in pros-pecting new fields, said to be the result of financial
stringency which has had a depressing influence on
investments in oil operations. This, it is asserted, is
beginning to cau:::;e a lull in developments and, although oil stocks are now increasing slightly, the reports in<licat e that oil in storage in the United States
is sufficient but for two months' supply for the refiners.
MINING.
Zinc and Lead.-Following is the report from Joplin
covering operations in the fields of Missouri,
Kansas and Oklahoma for the month of October:
"October closed with shipments aggregating 59,625
tons of zinc with a valuation of $2,439,313, and 1,376
tons of calamine with a valuation of $45,780. The
average weekly shipment for the month for zinc was
11 925 tons, with an average price for the five week
pe~iod of $40.90. Calamine shipn:ents averaged ~73
Lons per week, with an average pncc over the penocl
of $33.27. The price of zinc ranged from $43.00 at
the bcrrin11i11<r
of the month clown
to $40 at the close.
h
b
•
Calamine remained firm <lurmg- the month at $3 5.00.
'L'he month opened with 33,000 tons of unsold surplus zinc, and closed with 22,000 tons.
"The total shipments of zinc for October of last
year were 35,346, with a valuation of $1,568,473. ~otal
calamine shipments approximated 1,374 tons with a
valuation of $39,507. The tonnage averaged 8,836 tons
for zinc and 343 ton" for calamine. Zinc pri ·es ranged
from $42.50 to $-17.50, with an average of $44.37 for
tbc entire month. Calamine prices rang·ccl from $25.00
to $30.00, with an average for the month of $28.75.
"Lead ore shipments for the month totaled 9,440
BULLETIN
7
tons, with a value of $655,820. Weekly shipments
averaged 1,888, with an average price for the month
of $69.37. The month opened with the base range
price of $75.00 and closed at $65.00. These figures
compare with October, 1919, with a total shipment of
5,685, or 1,421 tons weekly.
Prices for the month
ranged from '$75.00 to $85.00, with a monthly average
of $79.65.
''The feature of the month was a two weeks shutdown of the mines of the district, the last two weeks
of the month. This. shutdown was the most complete
one ever attempted in the district, and it was estimated that only seven mines in the district maintained
operations during the month. A large number of
mi11es resumed operations the last day of the month,
some remained down until after election, and a number arc still down and are making needed repairs.
The plants featuring in this shutdown intend to curtail their output, running only three days per week,
in order to keep the production of the field in the
neighborhood of 7,000 tons weekly, and in this manner clo a way with the large surplus stocks which has
l,ee11 mai11tai11cd iu the district for Llic past year. It
is e s t imalcd i liat the surplus sold stocks of the dis
trict arc 110w in the neighborhood of 11,000 Lorn;, and
that the ore held by the producers is 22,000 tons.
There is also an unsold surplus of approximately 900
tons of lead held by the producers.
"Shipping conditions during the past month were
exceptionally goo<l and the ore buyers were able to
move a very large tonnage.
Colorado Metal Mining.-Metal mining conditions
changed comparatively little during the past month.
"The declining price of zinc," according to the report
of the Bureau of Mines, "has nearly wiped out the
profits of the large producers of that metal, and it is
stated that any further reduction would cause some
of them to shut down. The labor supply is still short
in many places."
Coal.- Production of bituminous coal in the United
States in October continued above 12,000,000 tons
per week, the daily average for the four weeks between October 2 and October 30 being 2,032,750 tons.
Total production for the calendar year to October 30
amounted to 440,462,000 tons, which compares with
389,651,000 tons for the corresponding period of ten
months in 1919.
In the Southwestern fields the mines were operated
for the three weeks ending October 2, 9 and 16 at
74.5% capacity.
In Kansas, operation wa at 69.5%
capacity, in Missouri at 85% and in Oklahoma at
69.4%. 'l'he weekly reports of percentage of full time
lo::;t i11 mining operations on account of transportation disability, labor shortage, strikes and mine disability, are here given:
Kansas
Transportation disability . . . 14.9%
Labor shortage . . . . . . . . . .
3.1
Strikes . . .. .. .. . .. .. .. .. .
1.0
Mine disability . . . . . . . . . . . 11.4
Missouri
3.4%
4.4
1.9
5.2
Oklahoma
6.3%
2.3
14. 7
1.7
With a lacl-e11ing of industrial activity the demand
for steam coal has softened to some extent since September, but there has been no radical change in prices.
8
THE MONTHLY
BULLETIN
Statement of Condition
FEDERAL RESERVE BANK OF KANSAS CITY
Including Branches
At Close of Business November 12, 1920
RESOURCES
Gold Coin and Certificates .................. $
Gold Settlement Fund F. R. Board .......... .
Gold \; ith Federal Reserve Agent ........... .
Gold Redemption Fund ..................... .
Gold with Foreign Agents .................. .
Legal Tender Notes, Silver, etc .............. .
Bills Discounted:
Secured by Govt. War Obligations ...... .
All Other ............................ .
Bil Ii-, Bought in Open l\larket ............... .
U. S. Govt. Loi c!B ......................... .
U. 8. Ce>rt. of lndebtcdncss ................. .
Bank Prcrn iscs ........................... .
Uncollected Ikms ancl Other
Dc,luctions from Gross Deposits ........ .
5% Redemption Fund Against
F. R. Bank Notes ...................... .
All Other Resources ....................... .
719,665.00
20,013,871.82
39,236,540.00
5,229,692 20
3,707,779.62
1,945,303.50
31,7'1 11,928.02
80,76:~,217.16
2,:n1,71:t17
8,867,900.00
L2,825,500.00
88G,G23.40
62,065,558.08
915,590.00
304,455.37
Total Resources ......................... $271,560,237.34
LIABILITIES
Capital Paid In ............................ $ 4,507,250.00
Surplus .................................. . 8,395,257.87
Government Deposits ..................... .
1,920,679.84
Due to Members, Reserve Account .......... . 78,627,757.58
Other Dcposib:, .......................... .
'108,770.81
Deferred Availability Items ................ . '19,428,162.75
J◄'. It N ot0s in Actual Circulation ........... . 109,lGl ,075.00
F. R. Banl· Notes in Actual Circulation ..... . 15,085,500.00
All Other Li~bilities ....................... .
4,025,783.49
Total Liabilities ........................ $271,560,237.34
OTHER TOTALS
Total Gold Reserves ...... ... ............... $ 68,907,548.64
Total Earning Assets. . . . . . . . . . . . . . . . . . . . . . . 136,536,258.35
Total Gross Deposits. . . . . . . . . . . . . . . . . . . . . . . 130,385,370.98
Contingent Liability as Endorser on Bills Re~
discounted with Other F. R. Banks. . . . . . . 40,502,981.41
Ratio of Total ReHcrvcs to Net Deposit and
F. R. Notes Liabilities Combined........
39.9%
Ratio or Gold Rcsc1·ve to F. R. Noles in actual
chculation after setting aside 35% against
net deposit liabilities. . . . . . . . . . . . . . . . . . .
43.0%
CLEARINGS
Total Clearings for Week ................... $230,421,444.22
'fotal Number of Items Handled. . . . . . . . . . . . .
1,129,559
@FedFRASER