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THE MONTHLY REVIEW Of Agricultural, Industrial, Trade and Financial Conditions in the Tenth Federal Reserve District FEDERAL RESERVE. BANK OF KANSAS CJ TY M. L. McCLURE, Chairman and Federal Reserve Agent A. M. McADAMS, Assistant Federal Reserve Agent and Secretary Vol. F . 12 KANSAS CITY, Mo., URTHER improvement in the condition and prospect for farm crops, increased activity in leading industries, and an upturn in trade, were indicated by August reports on conditions in the Tenth District. The Government's latest official crop report showed that between August I and September I the composite condition or yields of all farm crops in this District rose from 1.9 per cent below to 3.6 per cent above their ten-year average. On September 1, for the first time this year, the composite figure for this District was higher than the average for the entire country. A h · l f h· · mong t e maJor resu ts o t IS improvement was a gain of 122,415,000 bushels in the District's corn prospect. The official forecast, based on the September I condition, placed this year's crop at 570,200,000 bushels, which is 261,526,ooo bushels more corn that the farmers of this District produced in 1926. ' Other crops made moderate to heavy gains during August, and it was apparent from September reports that nine of fourteen · Id s t h an last year an d fi ve 1ead .mg crops wou Id s h ow Iarger y1e would show smaller yields. The heaviest decline was in cottona decline of about 43 per cent from the District's record crop of 1926-due to reduced acreage, unfavorable weather conditions and damage by weevil. Marketing of grain and other farm products <Luring August were the heaviest for that month in several years. Receipts of livestock at primary markets, combined for all classes, were the largest of the year. Prices paid producers for farm products and livestock generally were higher than last year. The output of flour mills increased under improved domestic and foreign demand. The slaughter of meat animals was the largest for any month of the year, and larger than in August last year for all classes except sheep. The production of soft coal at the mines in this District was larger in August than in any preceding month since March, and for the first time since March the output was larger than for a corresponding month last year. The production of zinc and lead ore in the Missouri-Kansas-Oklahoma District continued the increase which began in July, and August shipments were the heaviest since...March but not quite up to the record of a year earlier. Some curtailment of the output of crude petroleum was reported for all of the producing states in this District, and the daily average flow fell below that of July, although it was nearly double that for August last year. Building contracts awarded in this District in August called or a larger expenditure than the awards in July, but a smaller No. OcTOBER r, 1927 10 BUSINESS IN THE TENTH FEDERAL RESERVE DISTRICT Percent Increase or decrease August 1297 August, 1927 compared to compared to General Business July 1927 August 1926 - 7.1 -4.6 Payments by check (debits), 29 cities - 1.7 - 7.0 Reserve bank clearings, amount.----·Items handled, number _ _ __ 2,1 Business failures, number_, _ _ __ 5.4 Liabilitie::s-_ _ _ _ _ _ __ 56.2 Trade-23.1 Retail, Department st0 re•.,__ __ 17•9 Wholesale, six lines............ _ _ __ Lumber sales at retail yard,,.__ __ 16.1 Market receipts Wheat............. _ _ _ _ _ _ __ 7.1 18.1 Corn ... _ _ _ _ _ _ _ _ _ __ -28.6 231.1 g:~~i~:_-_···_··_________ Calves .............. - - - - - - Hogs .. _ _ _ _ _ _ _ _ __ Sheep ........ - - - - - - - - Horses and Mules·-··············--Industrial OutputFlour............ _ _ _ _ _ _ __ Crude oil........ _ _ _ _ _ _ __ Soft Coal.......... - - - - - - Cement, shipments-······························ Face brick .................. _ _ _ _ __ Zinc ore shipment"------Lead ore shipments ............ - - - Meat packing- 56.4 93.4 5-5 57.9 68.3 7.1 -4.3 43.3 6.2 2.5 - 7.1 -22.3 -22.3 49.1 0.2 - 3.1 - 1.5 -12.2 -I'l.8 ~:f:~e··---------- 38.1 77.7 Hogs, _ _ _ _ _ _ _ _ _ __ Sheep ........- - - - - - - - - ConstructionBuilding permits, 18 cities ......................Value of permits.................................. Value of contracts awarded, district........ l.O - 3.4 8.6 6.8 18. 1 -19.1 22.5 -38.7 10.8 -19. 1 expenditure than for the corresponding month last year. Considerable activity in building was indicated by the reports from leading cities. The number of building permits issued in August was greater than either the preceding month or the corresponding month last year, but the value of permits was less than in either the preceding month or a year ago. The better prospect for agriculture brought _increased trade activity in nearly all sections. There were evidences that retailers were preparing for a heavy fall business. Combi.ned sales of wholesalers in six lines were larger than in July of this year or August of last year. Department stores and also single_ line stores handlino0 men's and women's clothing, shoes and furniture reported their dollar sales were larger than in the preceding month this year, and also exceeded those for August 1926. Thls Copy Released FOi' Publication In Morning Newspaper September 29. THE MONTHLY REVIEW Financial No important change in the financial situation developed between the middle of August and the middle of September. Money in banks at all times was plentiful and rates continued low. The heavier volume of business called for a small increase in loans, but the volume was slightly below that of a year ago. Demand deposits were a little less than a year ago, although time deposits and savings deposits in reporting banks were greater. MEMBER BANK OPERATIONS: Loans and discounts of a selected list of member banks, which make weekly reports to the Federal Reserve Bank of Kansas City, declined less than onehalf of one per cent between August 10 and September 14, and the total as of the latter date stood 4.9 per cent below that reported for the corresponding date last year. Investments increased 3.2 per cent during the five-week period to a new high level and were 7.4 per cent larger than a year earlier. The total of bank credit in the form of loans, discounts and investments of the reporting banks of September 14 was 1.2 per cent below that for the corresponding reporting date last year. Their deposi.ts showed little change during the five-week period, while as compared with a year earlier demand deposits were 2.8 per cent smaller, time deposits 5 per cent larger, and total deposits 1.9 per cent smaller. Principal resource and liabilities items of sixty-five reporting banks are here shown for September 14, together with those for August ro, 1927, and September I 5, 1926, for comparison: Sept. 14, 1927 Aug. 10, 1927 Sept. I 5, 1926 Total Loans and Discemnts·---···••.. $426,849,000 $428,381,000 $448,790,000 3,877,000 3,935,000 4,088,000 Secured U. S. Obligations............ Secured by Other Bonds and Stocks ....................................... . 134.194,000 130,198,000 I 22,42 I ,ooo All Other....................................... . 288,778,000 294,248,000 322,281,000 Total Investments ............................ 210,615,000 204,134,000 196,144,000 United States Securities........ ..... . 96,310,000 105,871,000 98,633,000 Other Bonds, Stocks and Securities... _ _ _ _ _ __ I I I ,982,000 90, 273,000 Total Loans, Discounts and In637,464,000 632,515,000 644,934,ooo vestments··-····-----Total Deposits ...· - · · · · - - - - - 661,109,000 660,947,000 673,7 13,ooo Demand Deposits ........................ 504,183,000 504,736,000 518,918,000 Time Deposits .............................. 156,813,000 155,474,000 149,344,000 Government Deposits .... - ............ n3,ooo 5,451,000 737,000 Reserve Balances with F. R. Bank 54,946,000 56,389,000 55,920,000 RESERVE BANK OPERATIONS: Bills rediscounted by the Federal Reserve Bank of Kansas City for its members, and also bills purchased in the open market, increased durinS?; the five weeks ending September 14, mainly as a result of the heavy movements of farm products and livestock, but were considerably smaller than at the corresponding reporting date in 1926. The Bank's holdings of United States securities was larger at the middle of September than five weeks earlier and a year earlier. Principal items contained in statements as of the three dates mentioned here shown: Sept. 14, 1927 Aug. 10, 1927 Sept. 15, 1926 Gold Reserves.................................... $ 96,753,684 $103,594,937 $ 95,399,910 Reserves other than Gold................ 5,848,072 5,247,780 4,540,920 Total Reserves.................................. 102,601,756 108,842,717 99,940,830 Bills Discounted.... .. 9,520,682 7,691,705 13,429,840 7,706,743 5,926,537 Ii,558,800 Bills Purchased.................................. United States Securities.................. 33,691,000 31,164,000 30,999,400 Total Bills and Securities................ 50,918,425 44,782,242 58,988,040 Total Resources................................ 208,747,872 199,670,106 220,100,398 64,140,475 63,892,275 66,412,200 F. R. Notes in Circulation............. . Total Deposits.................................. 89,513,581 89,983,342 9~,933,026 PAYMENTS BY CHECK: Debits by banks to individual accounts in twenty-nine cities amounted to _$1,242,933,000 during a period of four weeks ending A~gu~t JI. This figure was 7.1 per cent less than that for the preceding four weeks ending August 3, and was also 4.6 per cen~ less than that fo~ ~he corresponding four weeks in 1926. Debits reported by 19 cit.ies were smaller and by 10 cities larger than for the corresponding four weeks in 1926. Debits in the twenty-nine citie~ during ~he first eight months of 1927 amounted to Ju,036,984:000, an increase of I per cent over the total for the first eight months of 1926. Four Weeks Ending Aug. 31, 1927 Sept. 1, 1926 Albuquerque, N. M ................... 'f, 9,182,000 .,, 9,914,000 Atchison, Kans ........................... . 5,543,000 5,45 2,000 Bartlesville, Okla ....................... . 17,763,000 21,162,000 6,824,000 8,647,000 Casper, Wyo ......... .. .. ·-··············· Cheyenne, Wyo ....... _ _ __ 6,4II,OOO 5,979,000 Colorado Springs, Colo .......... _.. 14,068,000 15,757,000 154,041,000 164,467,000 Denver, Colorado.... ·-················· 14,412,000 19,214,000 Enid, Okla ..................... •········-···· Fremont, Nebr........................... . 3,418,000 3,165,000 Grand Junction, Colo......._......... 3,006,000 3,103,000 Guthrie, Okla .............................. 3,042,000 2,952,000 Hutchinson, Kans ...................... . 15,636,000 23,365,000 Independence, Kans.................. 8,804,000 9,526,000 Joplin, Mo .................................. . 19,723,000 16,437,000 Kansas City, Kans .................... . 18,513,000 18,128,000 Kansas City, Mo ........................ . 367,820,000 387,204,000 Lawrence, Kans ........................... 4,221,000 4,729,000 27,797,000 27,914,000 Lincoln, Nebr.·-··························· 9,787,000 10,048,000 Muskogee, Okla .................. ·-··-· Oklahoma City, Okla ................ . 76,203,000 85,591,000 Okmulgee, Okla .......................6,623,000 10,870,000 Omaha, Nebr. _ _ _ __ 199,658,000 194,646,000 Parsons, Kans ..... _ _ _ __ 2,650,000 2,883,000 Pittsburg, Kans .......................- .. 4,876,000 5,810,000 17,391,000 15,814,000 Pueblo, Colo ....... ·····················-· 50,085,000 55,289,000 St. Joseph, Mo.·-·······················Topeka, Kans ............................ . 14,908,000 14,763,000 106,601,000 115,723,000 Tulsa, Okla .......... - - - - 53,927,000 44,321,000 Wichita, Kans .................. ·-····-·· ----- Total four weeks.-.......................$ 1,242,933,000 Total thirty-five wceks.............. f,u,036,984,000 f, 1,302,873,000 f,10,925,358,000 Per Cent Change - 7.4 1.7 - -16.0 --2 1.1 6.7 - 10.7 - 6.3 --25.0 8.o ·- 3.1 3.0 - 33.1 - 7.6 20.0 2.I - 5.0 -I0.7 - 0.4 - 2.6 - 11.0 -39.1 2.6 - 8.J - 16.1 10.0 9.4 1.0 - 7.9 21.7 - - 4.6 1.0 RESERVE BANK CLEARINGS: Check collections for banks in this District by the Federal Reserve Bank of Kansas City anq. branches at Omaha, Denver and Oklahoma City in August amounted to $932,984,000, a decline of 1.7 per cent from July and 7 per centless than the amount collected in Aug:1st 1926. A total of 5,747,325 checks was handled ·by the transit forces during the month. which was an increase of 2. I per cent over the number handled in the preceding month and an increase of 0.2 per cent over the number handled in the corresponding month last year. . . . SAVINGS: Fifty-nine commercial banks and savings institutions in leading cities reported an increase between August 1 and September 1 of 1.2 per cent in the amount of their savings deposits ancl the total on the latter date stood 3.8 per cent above that rep~rted for September I, 1926. The number of savings accounts reported by fifty-three banks on September I s~owed an increase of o.8 per cent in one month and 3.4 per cent in one year. The reports in detail: Banks Denver, Colo............................ _ 7 Kansas City, Kans.................... 3 Kansas City, Mo...................._ 9 Lincoln, Nebr.·-·······--- 3 Oklahoma City, Okla............... 6 Omaha, Nebr............................. 5 St. Joseph, Mo,_____ 6 Tulsa, Okla ........ _ _ _ _ _ 6 Wichita, Kans ........................._ 10 Other Cities................................ 4 'fotal.. ..................................... 59 Sept. r, Sept. 1 Aug. 1, 1926 1927 1927 .,, 51,909,631 '$ 50,965,745 '/, 51,853,II4 2,202,011 2,090,418 2,039,355 16,640,041 16,657,968 15,558,954 3,026,226 2,988,627 3,024,191 7,46(,,761 7,776,638 7,859,199 7,868,562 7,623,340 7,989,I 54 7,881,613 7,867,144 7,830,903 13,6o6,427 15,285,091 15,375,620 5,109,486 5,786,740 5,858,649 1,081,820 1,039,402 1,n2,934 j THE MONTHLY REVIEW WHOLESALE TRADE IN THE TENTH FEDERAL RESERVE DISTRICT SALES Reporting Stores Dry Goods............ 8 5 Groceries_ .............. Hardware·--········-· 7 Furniture·-·····--···· 4 Drugs-- - - · · 7 Millinery................ 4 0UTSTANDINOS (MO, END.) August 1917 compared with July 1917 August 1926 46.0 4.8 -2.1 12.J ~.6 - 0.4 52.4 3.2 13.2 19.7 11 3·9 -41.9 Aug. 31, 1917 compared with July 31, 1927 Aug. 31, 1926 23.1 1.7 -3-4 1.2 -1.5 9.0 6.8 - 6.o 4.8 0.9 17.5 - 52.5 FAILURES: Business insolvencies in the Tenth District since the beginning of the second half of the year have been fewer and liabilities less than for the corresponding period in the preceding year. This is in marked contrast from the record for the first half of the year which showed a larger number of failures and a greater amount of liabilities than was reported for the first half of the preceding year. The figures, as reported by R. G. Dun & Company, follow: NUMBER 1917 1926 First Six Months ................................ _.. 735 638 July...........·----······················ 87 Il 2 97 August.-.......................... ......................... 92 LIABILITIES 1927 1926 $10,894,386 $ 7,336,740 939,692 1,107,829 1,468,395 1,784,080 Eight Months·--······:··············-······-······ 914 $13,302,473 $10,228,649 847 Failures in the United States, by Federal Reserve Districts, are here shown for the month of August together with those for August 1926 for comparison: 1 • NUMBER 1917 1926 154 179 240 316 54 44 173 138 143 107 142 104 251 236 103 53 85 85 92 97 54 50 217 184 LIABILITIES 1927 • 1926 'I, 2,674,96o 1, 3,070,752 14,54o,791 5,967,571 1,105,859 2,630,058 4,276,479 . 1,651 ,989 2,155,805 1,433,713 3,020,017 1,930,050 3,74 1,123 3,472,839 750,216 1,326,682 1,819,855 631,509 1,468,395 1,784,080 896,603 682,086 1,745,850 3,548,331 Total, United States ................ _.............. 1,708 1,593 $39,I95,953 $28,129,66o District First, Boston ....................................•,-.. Second, New Yor Third, Philadelphi .. Fourth, Cleveland._. Fifth, Richmond .... -...... Sixth, Atlant Seventh, Chicago Eighth, St. Louis... Ninth, Minneapoli TENTH, KANSAS CITY Eleventh, Dalla Twelfth, San Francisco·--··················· COLLECTIONS: The composite figure for all reporting department stores indicated collections during August on outstandings at the end of the preceding month were 38.5 per cent, which compares with 40.1 per cent for July and 38.9 per cent for August 1926. The reports of apparel stores, shoe stores and furniture stores indicated percentages of collections on amounts outstanding were not quite up to the percentages reported a year earlier. Reports of wholesale firms showed but slight change in the percentage of collections from the previous August. COLLECTIONS STOCKS Aug. 31, 1927 compared with July 31, 1927 Aug. 31, 1926 8.5 - o.8 11.9 12,2 1.6 2.8 -3.0 - 5.4 1.3 5.9 -5.8 -25.4 (Mo. END). Aug. 31, 1917 compared with July 31, 1927 Aug. 31, 1916 11.7 - 8.3 9-4 -5.8 o.6 -1.0 -3.6 -8.o 5-1 3.9 Trade WHOlESALE TRADE: The volume of wholesale trade in six lines was larger in August than in July and larger than in August 1926, according to the reports of representative firms located at the leading centers of distribution in this District. The reports by lines showed increases for August over July in sales of dry goods, millinery, furniture and drugs and decreases in sales of groceries and hardware. Sales during August of dry goods, groceries, furniture and drugs were larger than for the same month last year, with hardware showing a small decrease and · millinery a heavy decrease. Wholesale stationery trade was larger than either the preceding month or the same month last year. Reports from over the District reflected a feeling of optimism among merchants over the improved crop conditions. This was particularly emphasized by reports of dealers in Nebraska. Retail merchants generally were reported as preparing for a good fall trade and their purchases of stock for the coming fall and winter were heavy. The dry goods reports indicated a general firming up of prices for cotton goods, which wholesalers attributed to the short cotton crop and low stocks of cotton goods in the hands of manufacturers and wholesalers. Sales of farm implements during the month were reported at about the level of a year ago. July and August were somewhat disappointing to distributors of tractors from the fact that in a considerable part of the territory the excessive moisture made it almost impossible to use tractors during a part of the season. Wholesalers of automobile f s and accessories continued heavy during the season but the dollar value of sales was nearly 20 per cent less than a year ago. RETAIL TRADE: Sales of department stores in cities throughout this District which report to the Federal Reserve System, were 23.1 per cent larger in August than in July and 10.7 per cent larger than in the same month last year. The August sales in dollars were large for the month, twenty-five stores reporting increases and nine stores decreases as compared with sales in August 1926. The heavier trade in August carried RETAIL TRADE AT 37 DEPARTMENT STORES IN THE TENTH FEDERAL RESERVE DISTRICT SALES Stores Reporting Kansas City._____ 4 Denver__ _ 5 Wichita.·- - ············ J Oklahoma City...... 3 4 Omah _ _ __ Lincoln___ 2 Tulsa.. ------ -······ 3 Other Cities...-···- 13 ( RETAIL) STOCKS OUTSTANDING ORDERS AccouNTS RECEIVABLE August 1917 Eight Months 1927 August 31, 1927 August 31, 1917 August 31, 1927 compared to compared to compared to compared to compared to August 1926 Eight Months 1926 July 31, 1927Aug. 31,1917July31,1927 Aug.31,1926July31,1927 Aug.31,1926 July 11.6 -2.9 12.0 1.2 - 6.4 1.6 2.0 3.0 5.8 0,8 12.7 6.7 -10.6 - 4.7 I.I 3.2 12.3 9.4 28.3 17.3 4.5 23.7 26.5 13.0 16.5 12.5 - 16.4 3.5 32.6 10,9 -6.o I0.2 7.6 10,3 ~.I 8.3 ~.7 -1 8.9 -0.5 2.4 11.5 12.8 13.4 12.0 - 11.9 6.1 5.2 5.8 0.4 - 1.7 9.5 -6.4 ~ -3 -3.6 - TotaL_ .. ______ 37 10.7 1.1 13.4 4.7 -u.6 - 4.0 NOTE: Percentage of collections in August on outetanding accounts July 31, all stores reporting, 38.7%. COLLECTIONS August 1917 compared to 1927 Aug. 1926 8.3 2.2 6.7 - J.8 20.6 13.6 6.6 25-J 6.8 3.5 6.2 17.4 18.0 13.3 - 14.5 1.8 7.0 - 9.0 3.3 Collections same month last year 39.1%. THE MONTHLY REVIEW 4 total sales for the first eight months of 1927 to 2.5 per cent above the total for the like period in 1926. - Sales reported by stores carrying men's and women's apparel averaged 30 per cent above those for July and 22.1 per cent above those for August 1926. Sales of shoes at retail were 22.9 per cent smaller than in July but 8 per cent larger than in August a year ago. Sales of furniture at reporting retail_stores exceeded those for August last year by 26.2 per cent. The August reports of retail stores showed their stocks increased during the month and on August 31 were larger than on the same date last year, except for a small decrease in retail furniture stock. Lumber and Materials Reports of all associations to the National Lumber Manufacturers Association indicated the lumber cut in the United States during the four weeks ending August 27 was I 1.6 per cent larger than in the preceding four weeks ending July 31, and 1.5 per cent larger than in the corresponding four weeks ending August 28, 1926. Shipments and orders exceeded those for the preceding four-week period but fell below those for the like period in 1926. The combined figures for all associations for the four-week period follow; Four Weeks Ending Aug. 27, 1927 Feet C u t . · - - - - - -- ········ 1,233,049,823 Shipment.. _ _ _ _ _ __ 1,153,417,008 Orders-- -············-- - -- 1,151,139,587 July 30, 1927 Feet 1,104,728,709 1,043,644,876 1,035,788,097 Aug 28, 1926 Feet 1,214,285,722 1,200,078,665 1,179,194,641 Separate reports of eight softwood associations and two hardwood associations, covering the lumber movement during the first thirty-four weeks of 1927, are here shown, together with those for the corresponding period in 1926 for comparison: Thirty-four Weeks Ending Aug. 27, 1927 Feet Softwoods 7,656,066,542 Cut .... - - -- ···················- - -Shipments ..........- ....................................... . 7,806,863,005 Orders ........................ _ __ _ _ _ 7,835, 105,34 1 Hardwoods: Cut ................ _ __ _ _ __ __ 971,244,000 Shipments .......· - - --··············, ....... 1,038,922,000 - -- - 1,045,644,000 Orders__ __ _ Aug. 28, 1926 Feet 9,104,44 2,433 9, 259,4 17,584 9,189,680,966 994,739,069 958,039,301 982,752,414 Retail lum her yards in cities and towns in- this district reported their August business as considerably heavier than that for July, but was still below the volume reported a year ago. The percentage of increase or dcerease for August over July 1927 and August 1926 follows: August 1927 Compared to July 1927 Aug. 1926 Sales of Lumber, board feet .... _ _ ___ 16.r -'25.9 Sales of Lumber, and materials, dollars.. _ _ __ 18.9 -II.8 Stocks of Lumber, end of mont •._____ __ _ 2.2 - 2.3 Outstandings, end of mont,.___ _ _ __ _ _ 3.6 -19.1 Collections during month ...... _ _ _ _ _ _ _ _ - 8.5 -19-5 CEMENT: The recurrent summer rise carried production and shipments of Portland cement in the United States to new peaks in August, according to the Bureau of Mines, Department of Commerce. Production of 18,305,000 barrels for the month showed an increase of nearly 8 per cent over August 1926. Shipments of 21,4TI,ooo barrels for the month were 15 per cent over the corresponding month last year. Portland cement stocks made further decline and on August 31 were 16,290,000 barrels, or 4 per cent in excess of stocks at the end of August 1926. August production of Portland cement at mills in this District totaled 1,159,000 barrels against 1,471 ,ooo barrels in August 1926 and shipments were 1,442,000 barrels against 1,489,000 barrels in the corresponding month last year. FACE BRICK: Production of face brick at sixty-five plants located in sixteen states during August averaged 842 thousan per plant. This output indicated an increase of 8. 5 per cent over July production and a decrease of I. 5 per cent from production in in August 1926. Shipments during August averaged 825 thoussand per plant, which was 5.1 per cent larger than in the preceding month and 5.7 per cent larger than in the corresponding month last year. Unfilled orders at the end of August were 1,069 thousand per plant, 4.1 per cent larger than reported a month earlier and 8.5 per cent larger than a year earlier. Building . The value of building contracts awarded in the Tenth District during August amounted to $19,061,001, according to statistics compiled by F. W. Dodge Corporation. The August figures compare with $17,203,236 for the month of July and with $23,556,000 for the month of August, 1926, indicating an increase for August of 10.8 per cent over the preceding month and a decrease of 19.1 per cent over the corresponding month last year. The number of building permits issued in eighteen cities of the District during August exceeded that for July by 18. 1 per cent and that for August oflast year by 22.5 per cent. However, the value of permits issued during the month was 19.1 per cent below that for the preceding month and 38.7 per cent below that for the corresponding month last year. An analysis of the returns show there was considerable ·building activity in most of the cities during the month and the building investment in seven cities was larg,r and in eleven cities smaller than a year ago. Official reports of building permits issued in both August 1927 and 1926 follow: Albuquerque, N.M ................. Casper, Wyo ............................. Cheyenne, Wyo.... Colorado Springs, Colo.·-········· Denver, Colo ............................. Hutchinson, Kans .................... Joplin, Mo ................................. Kansas City, Kans ..·-·············· Kansas City, Mo ....................... Lincoln, Nebr Muskogee, Okla ..- .................... Oklahoma City, Okla._............. Omaha, Nebr............................. Pueblo, Colo .. St. Joseph, Mo ..-....................... Topeka. Kans.·--····················-· Tulsa, Okla .... Wichita, Kans ........................... Per cent Estimated Cost P ermits Change 1926 1926 1927 1927 So 40 1, 148,300 1, 207,500 --28.5 6 20 45,95° 11,500 300.0 • 26 133,610 48.0 29.400 25 43,006 40,069 7.3 72 53 1,457,000 1,012,650 43•9 73 2 549 Ill,123 34,670 220. 5 63 31 68 58 ,200 32 255,9 25 47.3 177 123 321,438 -61.4 123,950 761,525 2,063,910 -63.1 538 3 19 241,010 85 494,895 -51.3 94 12 50,040 18,372 172.4 39 208 160 802,250 'l,667,625 -69.9 I 5 -'26.o 790,8 158 584,975 125 153 86 179,928 84,585 I12.7 98,147 - 33.8 71 64,9 25 54 Ill 186,175 144 575, 22 5 -67.6 245 640,956 485,083 32.1 3 14 218 639,304 - I 1.6 252 565,375 - ------ Total 18 cities .. _ _ __ _ 3,019 2,464 $6,094,088 $9,935,323 -38.7 Flour Production Mills in this district during August were operated at 67.2 per cent of their capacity as compared with 65.7 per cent in July and 90.7 per cent in August 1926. Production of flour at the leading milling centers during August totaled 2,156,941 barrels, an increase of 7.1 per cent over July and a decrease of 22.3 per cent as compared with August 1926. The output of the mills follows: Atchison .................................................. Kansas City_ __ _ __ _ __ ·-····························Omaha Salina..... __ _ _ __ _ ____ St. Joseph-··- - -······- ················- ·········-· Wichita.·-··----··· Outsid.__ _ _ _ _ _ _ _ __ Total.......·-···· -- -- - - - Aug. 1927 Barrels 123,277 577,398 106,754 157,416 144,141 175,443 872,512 July 1927 Barrels 119,853 5'.22,984 82,797 140,167 170,852 II7,684 859,687 Aug. 1927 Barrels 122,647 654,756 n6,791 150,057 216,127 226,724 1,290,197 2,777,299 . 5 THE MONTHLY REVIEW THE CROPS • ESTIMATED CROPS I September I Final 1926 With generally good growing conditions•and."abundant to ex- Winter Wheat, bushels .................................. 240,616,000 283,469,000 cessive rains farm crops improved substantial1y during August in Spring Wheat, bushels·-··-····························· 12,450,000 10,050,000 293,519,000 the seven states whose areas or parts are included in the Tenth All Wheat, bushels...............·-····- ······-······-- 253,066,000 Corn, bushels .......... _ __ _ __ __ 570,200,000 308,674,000 Federal Reserve District. Further improvement came in Sept- Oats, bushels................_ _ _ _ 138,862,000 143,132,000 tember as a result of unseasonally high temperatures delaying Barley, bushels:. - -- - ························ 30,270,000 20,687,000 the coming of frost and permitting fall crops, which had a poor Rye, bushels...................................- ............... 7,032,000 5,430,000 26,452,000 34,094,000 start, to come to maturity. The extent of the improvement in White potatoes, bushels ................................ 3,387,000 3,219,000 potatoes, bushels·-···················-··- ······ August may be realized by a study of the September report of the Sweet Cotton, bales, ................ _ _ _ _ 1,689,000 957,000 United States Department of Agriculture through its Bureau of Tame Hay, tons .......... _ _ __ _ 14,324,000 I I,894,000 Agricultural Economics. This report showed the composite con- Tobacco, pounds .....·-·························-········· 3,227,000 3,182,000 8,408,000 5,85 2,000 dition, or yields, of all farm crops in the seven states rose form Apples, bushels.......................................·-······ 2,083,000 1,659,000 an August I condition of 98.1 per cent of the ten-year average Peaches, bushels ................ ·-·························I O, I3 j 11,856 Grapes, tons .........................·-··-··--·····-······ condition on that date to a September I condition of 103.6 per cent of their ten-year average condition on that date. This inebraska's dicates that crops, which on August I were 1.9 per cent below tons of beets, compared with 2,267,000 tons in 1926. their ten-year average, moved up 5.5 points during the month report indicated a crop of 910,000 tons, against 923,000 tons last and on September I were 3.6 per cent above the ten-year average. · year. The Wyoming report indicated a yield of 11.5 tons per During August the composite condition of all crops in the nited acre, but figures on acreage were not available for the September States declined fro m 99 per cent of the ten-year average to 98.1 report although it was reported total production for 1927 would be larger than in 1926. per cent of the ten-year average. Sep ember reports indicated the broom corn crop in Oklahoma The summary which follows shows the composite condition of all crops in the seven states as of the two dates mentioned and and Kansas combined would be 23,240 tons as compared with the percentage of change during the month. For growing crops 33,400 tons last year, the reduction in the size of the crop resultthe base of 100 per cent is the ten-year average condition. For ing from a decrease in acreage in Oklahoma. Reports from Colorado, Kansas, Nebraska and Oklahoma inharvested crops the base is the ten-year average yield per acre: dicated a crop of 66,215,000 bushels of grain sorghums compared Sept. I Aug. I Change 95.2 7.4 Colorado.............................................................. 102.6 with 44,726,000 bushels in 1926. 98.7 9.8 Kansas.................................................................. 108.5 The crop of dry beans in Colorado and Wyoming was reported 91. 8 88.6 3.2 Missouri ..................... ·-········································ on September I as 2,376,900 bushels as compared with 1,286,000 110.2 10.8 Nebraska .............................................................. 121.0 bushels last year. New Mexico ....................................................... 101.4 15.3 86.r 97.6 - 3.1 Oklahoma._··-······················································· 94.5 COTTON: The condition of cotton in the United States deWyoming .............................................................. 107.5 105.9 1.6 clined from 69.5 per cent on August I to 56.1 per cent on September 1, a loss of 13.4 points for the month as compared with a tenSeven States........................................................ 103.6 98.1 5.5 United States...................................................... 98.1 99.0 - 0.9 year average August loss of 8.7 points, as reported by the United COR : • The outstanding feature of the September reports States Department of Agriculture. Declines in the condition of was a rem arkable improvement in conditions and prospects for cotton occurred in all cotton producing states except Tew corn. The . report indicated a total crop for the district of Mexico, Arizona and California, and were due to rainy, cloudy 570,200,000 bushels on Sept em her 1, a gain of 122,415 ,ooo bushels weather during most of August which promoted weevil activity. in the corn prospect during August and an increase of 261,526,000 The percentage of cotton acreage abandoned after July 1, the bushels or 84.7 per cent over the harvested crop of 1926. The acreage left for harvest, estimated yield as of September I and reports in detail showed gains were made during the month in all final yield for 1926, are shown in the following summary for each of the seven states except Wyoming, where prolonged cool wea- of the eight southwestern cotton states: ther made it doubtful as to whether corn would have time to Per Cent Acerage Acres for Est. Bales Total Bales Harvest Production Production Abandoned mature before frost. Corn prospects in the seven states are September I September 1 After July I in 1926 shown as of September 1 condition together with the estimate of Texas.... .. ...................... 4 16,354,000 4,700,000 5,627,831 August I of this year and a fin:11 estimate of 1926: 1,025,000 1,772,784 3,668,000 Oklahoma...·- ·················· I 2 Colorado ...................... _ _ __ Kansas.·-·············---Missouri ................. _ _ _ Nebraska.................... _ _ __ New Mexico ..................................... . Oklahoma.... - ................................... . Wyoming........................................... . Sept. 1, 1927 Bushels 24,852,000 171,693,000 1 53,0 55,000 261,446,000 3,587,ooo 78,200,000 3,768,000 Aug. 1, 1927 Final 1926 Bushels Bushels 10,472,000 20,143,000 I I 6,243,000 57,299,000 144,726,000 176,011,000 2 I 8,000,000 139,407,000 3,020,000 4,420,000 61,178,000 60,344,000 3,989,000 3,940,000 566,465,000 452,727,000 Seven States...................................... 696,601,000 TENTH DISTRICT·-····················· 570,200,000 447,785,000 308,674,000 United States ... ·-····- - - - - ·· 2,456,561,000 2,835,226,000 2,646,853,000 OTHER FALL CROPS: Due to late plantings and some delay in growers contracting with refineries, this year's sugar beet acreage in the district is slightly below that of 1926. The crop in Colorado improved 3 per cent in condition during August. Estimated production on September 1 in that state was 2,279,000 Arkansas .....·-·············· Louisiana.__ _ _ _ Missouri........................ New Mexico................ Arizona........................ California........_.............. Eight S. W. States...... United States .....·--···· 4 6 6 5 5.3 4.8 3,156,000 1,557,000 289,000 101,000 139,000 127,ooo 970,000 487,000 106,000 70,000 90,000 90,000 1,547,93 2 829,407 217,859 25,391,000 40,626,000 7,538,000 12,692,000 10,323,926 17,977,374 75, 000 121,902 131,2n Oklahoma's decline in the cotton prospect, indicated by the September forecast, was attributed for the greater part to the smaller acreage planted during the spring. There was considerable damage by weevil. While it was apparant from the estimate that the crop of 1927 would fall about 42 per cent below the bumper crop of 1926, the reports indicated fair to good prospects over a large part of the cotton area, notably in the western counties. 6 THE MONTHLY REVI~W Grain Movements Heavy marketings of all classes of grain, with prevailing prices higher than a year ago for all classes except rye, were reflected by the August reports from the five important markets of this district. Receipts of wheat, although 17 per cent smaller than in the peak month of July, exceeded the receipts for August last year by 7.1 per cent and were the largest for August of all years since 1924. Receipts of corn during the month were 82.8 per cent larger than in July, 18.1 per cent larger than in August of last year, and the largest for the month of August since 1924. The prospect for a "bumper•• crop in this district and the favorable price paid for corn accounted for the unusually heavy movements. Arrivals of oats and rye far exceeded the July receipts but for both of these grains the August receipts were smaller than those of a year ago. Receipts of barley and Kafir were larger than in the preceding month and the corresponding month last year. August receipts of six classes of grain at the five markets are here shown: Huchinson ........ Kansas City...... Omaha .... .......... St. Joseph·-······· Wichita._ ........... Corn Wheat Bushels Bushels 1,541,700 13,75° 17,722,6oo 1,306,500 10,716,800 1,681,400 1,715,000 1,104,000 2,335,500 63,600 Oats Rye Barley Kafir Bushels Bushels Bushels Bushels 3,000 39,ooo 626,000 90,000 244,800 '284,900 984,000 246,400 371,200 ·······-······· 120,000 1,500 9,000 1,750 13,500 7,200 - - -- - 34,o3t,6oo 4,169,250 1,746,500 345,400 61 7,750 July 1927.......... 40,986,550 2,281,250 52 7,500 82,400 59,35° Aug. 1926 .......... j 1,787,45o 3,53°, 15o 2 ,447,5 00 365,000 226,550 Aug. 1927.-....... 33 2,6oo 288,900 96,100 Live Stock Heavy movements of all classes of livestock to markets in this district, fat cattle values the highest in two years, further advance in prices paid for hogs, and slightly lower prices for sheep, were important features of the livestock reports for August. Combined receipts of cattle and calves at six leading markets were larger in August than in any preceding month since last November. The month's receipts of sheep were the largest since October of last year. Receipts of hogs were, with the exception of July, the smallest since last October. Receipts of horses and mules were the largest since March. The August receipts when compared with those for August of last year showed increases in cattle and hogs and decreases in calves, sheep, horses and mules. The countryward movement of stocker and feeder cattle, calves and sheep during August was the heaviest for any month of the year, although as compared with the record for the same month last year there were decreases of 3.6 per cent in cattle and 9.6 per cent in sheep, and an increase of 34.7 per cent in calves. The outgo of stocker and feeder hogs showed but slight change as compared with the preceding month but was 19.9 per cent less than a year ago. The returns for the first eight months in 1927 showed the countryward movement of all classes of stocker and feeder livestock from four reporting markets was larger than for the corresponding eight months in 1926. Kansas City ............................................... . Omaha .. ·-····················································· St. Joseph ................................................... . Denver·- ······················································· Oklahoma CitY··································-········ \Vichita-·· -·········-······•··•···-··----·············· Reports from all sections of the district indicated excellent conditions of livestock on ranges and pastures on September 1, with the figures for cattle and sheep averaging two points above the high condition figure reported a year ago. Grass on ranges and pastures was kept green by frequent rains and provided the best grazing in years at this season. Stockmen are still inclined to make the best of the situation by holding their stock on grass for as long a period as possible. The September I report of the Division of Crop and Livestock Estimates placed the condition on that date for 1927 and 1926, (100-normal) as follows: Colorado.......................................... Kansas .............. _ _ _ Nebraska.......................................... Oklahoma........................................ Wyoming........... ·-···························· Average 17 States ... ·-······················ RANGES 1927 1926 101 98 . 98 67 95 91 92 83 97 93 95 84 616,215 669,713 97,381 50,344 583,932 424,195 103,827 6oo,980 721,:205 454,846 5,762,258 4,250,886 490,001 5,551,890 4,549,581 SHEEP 1927 1926 99 99 97 96 I OI 94 Meat Packing With the heaviest market supplies of livestock of the year purchases by packers of animals for slaughter at the six leading packing centers were correspondingly heavy. The August totals showed a very large increase over July for all classes of meat animals, and there were moderate increases over August 1926 in the slaughter of all classes excepting sheep, which showed a decrease of 3.4 per cent. Reports for August reflected an improvement in the trade in pork products, both at home and abroad. The market for dressed beef was fair and prices steady to a little stronger for the month as a whole. Stocks of pork at Kansas City on August 31 were 39,820,200 pounds, 4,698,500 pounds less than on July 31 and 7,199,100 pounds more than on August 31, 1926. Coal Mining Reports from all soft coal mining fields of this district indicated greater activity during August than was reported for any month since last March. The total output for the month, as estimated by the Bureau of Mines, United States Department of Commerce, was 2,178,000 tons, an increase of 43.3 per cent over July production and an increase of 0.2 per cent over production in August 1926. The following summary shows the tonnage produced in August as compared with the preceding month and the corresponding month last year: Colorado............ ...................................... Kansas ..................................................... . Missouri ................................................... . New Mexico.......... ................................. . Oklahoma ............................................... . Wyoming ................................................. . *Aug. 1927 Tons 861,000 174,000 171,000 '.244,000 254,000 474,000 Total....................................................... . 2,1 78,000 *Estimated AUGUST MOVEMENT OF LIVE STOCK IN THE TENTH DISTRICT RECEIPTS STOCKERS and FEEDERS Cattle Calves Hogs Sheep Cattle Calves Hogs Sheep 66,961 5,674 2,351 37,093 230,059 57,247 165,830 152,726 246,254 341,751 23,626 1,409 168,284 121,130 8,411 97,156 8,582 667 1,633 21,557 55,953 10,701 119,822 908 1,659 20,513 33,428 6o,718 7,910 24,289 3,992 24,741 9,JJJ I 5,177 3,159 -·······-· ··········-·· 14,ZOJ ··-·····-· ···•····'····· --·····-··· 3,,7o4 30,653 7,697 August 1917----···•-···-··- ··- ··- ··-······-·- 486,825 July 1927..........·-···········-··-··-····-······-·- 311,221 August 19:26---·- ··- ·-·····- ···-··········-····- - 481,998 8 Months 1917.·-·····- ··· -- - -- 3,105,871 8 Months 1916_________ 3,n6,045 CATTLE 1927 19'26 99 98 95 82 95 93 88 86 98 99 93 91 107,079 42,964 111,118 591,578 589,967 7,249 7,052 247,447 3,867 7,089 96,744 5,380 8,808 273,801 40,630 113,208 .850,738 30,194 105,518 746,005 July 1927 Tons 534,000 129,000 127,000 178,000 188,000 364,000 Aug. 1926 Tons 778,000 326,000 193,000 213,000 168,000 495,000 1,520,000 2,173,000 • PA CKERS PURCHASES Calves Cattle 107,815 43,169 85,258 7,075 40,120 8,997 10,742 3,004 18,26o 8,025 10,295 4,470 Hogs I'.24,865 167,446 93,38 I Sheep 103,571 163,859 72,794 21,881 12,510 12,913 1,016 32,385 S,097 1,841,84.7 374,951 452,468 359,150 451,673 293,189 423,4o6 371,818 4,463,858 1,648,252. 1,892,858 402,710 4,131,184 2,Soo,664 272,490 74,740 197,269 42,070 263,531 68,823 • 7 THE MONTHLY REVIEW Petroleum Crude oil flowed from wells in the Tenth District during August at a rate of 1,002,760 barrels per day and gross output for the 31day month was 31,085,000 barrels, according to compilation of weekly reports of the American Petroleum Institute. These figures indicate a decrease from the preceding month of 46,040 barrels per day and 1,424,000 for the month. Still, the August production of crude oil exceeded that for the corresponding month oflast year by 330,160 barrels per day and 10,233,000 barrels for the month. Production figures for August are shown in the following tables with those for July of this year and August of last year for comparison: Daily Average Production *Aug. 1927 Barrels Oklahoma........ ______ 832,900 Kansas................ _ _ _ _ __ 105,100 55,160 Wyoming.............·- - - Colorado .... - ..· · - - - - 7,000 2,600 New Mexico.·- ····-···················:.............. Total. ... .. ··-·····················-·····················- I ,002, 76o Gross Production *Aug. 1927 Barrels Oklahoma.·---··-······························--·· 25,820,000 Kansas .. _ _ _ _ _ _ _ _ __ 3,258,000 Wyoming _ _ _ __ _ 1,710,000 Colorado.. _____ _ _ _ _ __ 216,000 81,000 New Mexico_ · · · · - - - - - - TotaL·-··--··········---········· · · · - - - 31,085,000 *Estimated American Petroleum Institute. Aug. 1926 Barrels 477,500 n8,400 63,500 8,700 4,500 July 1927 Barrels 866,500 108,200 63,500 7,800 2,800 672,600 July 1927 Barrels 26,861,000 2 ,353,000 1,969,000 241,000 85,000 Aug. 1926 Barrels 14,802,000 3,672,000 1,968,000 271,000 139,000 32,509,000 20,852,000 The foregoing figures show curtailment in crude oil production in Kansas, Wyoming, Colorado and New Mexico, each of these states reporting a smaller output in August than in the preceding month and the same month last year. Production in Oklahoma, which during the present year mounted to huge proportions declined during August, though in the week ending September J the output was at an average of 809,950 barrels per day. The summary of field operations shows a decrease in the number of new wells completed during Augi.;st, although the average daily new production brought in from the 435 wells was I 58 per cent larger than the average daily new production from 830 wells completed during August of last year. The bulk of this new production was in Oklahoma. The field summary for August follows: Wells Barrels Daily Dry Gas Rigs-Wells Completed ewProduction Wells Wells Drilling Oklahoma .. __ ····--···- ·-·········· 325 z31 ,z53 II J '2 5 1,155 Kansas .... _ _ _ _ _ _ 55 3,135 J 'l 4 246 Wyoming.. _ _ _ _ 35 5,071 7 6 141 Colorado.................................. 12 520 5 2 81 New Mexico.... ........................ 8 50 6 97 Aug. 1927.·-·······•- ········-········ 435 July 1927............ _ _ _ _ 633 830 Aug. 1926.·---······ -- 8 Months 1927...·-···-·····-··-- 4,490 8 Months 1926 ...·- ··············- 5,931 240,029 301,314 93,014 1,688,915 766,773 163 235 38 57 256 56 1,534 1,864 389 453 . 1,720 1,956 2,415 Reports from Oklahoma and Kansas showed 60 refineries in operation on September I with daily runs to their stills of 269,325 barrels, whereas the same number of plants in operation on August I reported daily runs of 285,775 barrels. On September 1 of last year 66 plants were in operation with daily runs of 272,370 barrels per day. Zinc and Lead The five weeks ending September 3 brought increased activity at the mines in the Missouri-Kansas-Oklahoma or Tristate dis- trict. Sales and shipments of both zinc and lead ores were the largest for any similar period since last March, exceeding those for the preceding five-week period by 27 per cent and 84.2 per cent respectively, but falling 12.2 per cent and 12.8 per cent short of the tonnages sold and shipped during the corresponding period in 1926. The record of ore shipments in tonnage and value follows: Zinc Ore Tons Value Oklahoma .........·-·········-····················· 48,984 1, 2,084,515 Kansas .......·-·····························-······- 23,900 1,020,01 I Missouri.. .......·-·································· 2,189 93,468 5 Wks. Ending Sept. 3, 1927........._ 5,073 5 Wks. Ending July 30, 1927.... - .... 59,104 5 Wks. Ending Sept. 4, 1926.·--···· 85,496 36 Wks. Ending Sept. 3, 1927........ 466,229 36 Wks. Ending Sept. 4, 1926 ........ 573,663 Lead Ore Tons Value 7,853 ·1,~ 675,826 3,166 273,36a 344 29,547 $ 3,197,994 n ,363 2,509,415 6,169 4,285,426 13,032 19,903,971 71,333 28,339,31 2 85,423 978,733 473,449 1,466,096 6,396,250 9,100,288 During the last three weeks of this five-week period zinc ores brought producers an average of $42 per ton, a decline of $1 from the average for the first two weeks, and $8 per ton below the price paid a year earlier. Lead ore prices, after rising to $87.50 per ton in the early half of August, declined to an average of $82,50 per ton for the week ending September 3, this price comparing with I 1 2 . 5 0 per ton for the corresponding week in 1926. Business Conditions in the United States Industrial production increased in August, reflecting a growth in the output of mines. and the distribution of commodities both at wholesale and at retail increased by more than the usual seasonal amount. The general level of wholesale commodity prices rose about I percent, owing chiefly to advances in the prices of farm products. PRODUCTIO : Production of anthracite and bituminous coal, which showed a considerable decline earlier in the season, increased sharply in August and the early weeks of September, and this rise was reflected in an advance in the board's index of mineral output from 98 percent of the 1923-1925 average in July to 106 percent in August. The index of manufacturers as a whole showed practically no change for the month. The iron and steel industry continued during August and September with little change in demand or in production, and the output of newsprint, lumber and cement showed only customary seasonal changes in August. Consumption of cotton remained unusually large for this season of the year, and there was an increase in the production of automobiles, which however, remained below the output of August last year. Output of shoes and rubber tires increased from July to August by less than the customary seasonal amount. Factory employment was in practically the same volume in August as in July, and both employment and production were smaller than a year ago. The volume of building contracts awarded in August was smaller than in August 1926, which wasamonthof unusually large awards. Thelargestdecreases as compared with last year, were in the Boston, New York and Chicago Federal Reserve districts. In the first half of September awards were in practically the same volume as in the correspond. ing peroid of last year. The Department of Agriculture's estimate of corn production on the basis of September I condition was 2,457,000,000 bushels compared with 2,647,000,000 harvested in 1926. The total yield of wheat is expected to be somewh at larger than a year ago. The 8 THE MONTHLY REVIEW forecast of the yield of cotton was 12,692,000 bales, representing a reduction of 800,000 bales from the August estimate and of over 5,000,000 bales from last year's crop. TRADE: Distribution of merchandise at wholesale and retail increased more than is usual in August, and sales were generally larger than in August of last year. Sales of wholesale firms in Inventories of most leading lines were larger than a year ago. department stores showed less than the usual seasonal increase in August and at the end of the month were in about the same dollar value as a year ago. Stocks carried by wholesale firms continued in August generally smaller than last year. Freight carloadtngs of nearly all types of commodities increased considerably in August and the early part of September, but with the exception of grains and miscellaneous products, loadings for all groups continued in smaller volume than in the same period of last year. PRICES: Wholesale commodities prices, as measured by the index of the bureau oflabor statistics, increased from 145 in July to 147 in August. There were large increases in the prices of farm products and of clothing materials, while most of the other groups showed only slight changes. The price of raw cotton advanced from 17 ½ cents a pound on August 1 to over 23 cents on ~ PEACIICf 150 150 September 8, but since that date has declined by about 3 cents a pound. Prices of cotton goods, cattle, hogs and sugar also increased during August and the first three weeks of September, those of grains declined. Recently there have been reductions in the prices of some iron and steel products. BANK CREDIT: Total loans and investments of Member Banks in leading cities between August 17 and September '.21 increased by $400,000,000 to the largest figure on record. There were increases in loans on securities and investments, as well as the usual seasonal growth in loans for agriculture and commercial purposes. The·volume of reserve·Bank credit increased during the Month ending September 21 reflecting the seasonal growth in the demand for current, and export of gold. The increase was entirely in the holdings of acceptances and United States securities as there was little change in discounts for Member Banks. In the open money markets rates on security loans increased slightly during September while rates on Commercial paper and 90-day Bankers acceptances remained unchanged at the lowest level of the year. Discount rates at the Federal Reserve Banks of Philadelphia, Chicago, San Francisco and Minneapolis were reduced during September from 4 to 3¾ percent, the rate prevailing in the other eight Districts. NRCINf PffiCENT ,so 150 100 Mn,f,etur,s PRODUCTION ar MANUFACTURES ANO MINERALS FN::rOJlff E.MPLOYMEHT AND PAY ROLLS O'----'---.J.----'------------0 S923 1925 1926 1927 Index of Manufacturers and Minerals adjusted for seasonal variations (1923-25 average, 100). Latest figures, August; manufacturers 1o6, minerals 1o6, PfffCt1ff PERCClfT 200 200 • o..._________"'-___..____....____~o 1925 •23 1 26 Federal Reserve Board's Indexes of Factory Employment and Payrolls, (1919 100). Latest figures, August; employment 91.2, payrolls 104.4. BILLIONS to or OOllARS 8 l lll ON!. Of t;OLI.MS tO 8 6 · 4 WHOLESALt PRICES - All Ccm,,,o,J,li,s 2 . ... A9ric11Hvrol /lQJJ•A91,tvlltv1FI 100 i,,__ _ _ _ _ __,L_ _ _...1._ _ __,__ _ __,w tOO · 1927 1925 1926 1923 192't Index of United States Bureau of Labor Statistics, (191.1-100). Latest sta:. tistics, August; all commodities 146.6, agricultural commodities 148. 1, nonagricultural commodities 144.5. MEMBER BANK CREDIT 0 I 1923 0 1-925 1926 Moni:hlY: averages of weekly figures for banks in 101 leading cities. Latest figures are__,averages of daily figures for the first three weekly reporting dates in September. •
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