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THE MONTHLY REVIEW Of Agricultural, Industrial, Trade and Financial Conditions in the Tenth Federal Reserve District I FEDERAL RESERVE BANK OF KANSAS CI TY I I Vol. 16 M. L. McCLURE, Chairman and Federal Reserve Agent A. M. McADAMS, Assistant Federal Reserve Agent and Secretary KANSAS CITY, Mo., B USINESS conditions m the Tenth District continued quiet during August and crop conditions were not as favorable September I as one month earlier. Sales at retail increased over July by less than the customary seasonal proportions and, contrary to the usual trend, wholesale trade declined. Unfavorable weather reduced corn prospects in the District during August and this year's crop is now estimated by the Government, on the basis of September I conditions, as 5,029,000 bushels short of last year's productiot}, whereas, August I indications were for a crop of 31,050,000 bushels greater than was harvested in 1930. Other unharvested crops suffered from the hot, dry weather in August and the first half of September. There was an unusually heavy movement of cattle to market in August as compared to July and to August, 1930, due to the seasonal movement of grass cattle to market, higher fed cattle prices, and a shortage ·of range feed. The movement of stocker and feeder livestock to the corn belt for feeding purposes was also unusually heavy for August. Receipts of wheat at primary markets declined by more than the average seasonal amount in August as compared to July, but were slightly larger than last August. Receipts of all other classes of grain were substantially smaller than in July this year or August! 1930. Flour production was seasonally larger in August than in July, but the increase over that month was less than is usual. Restriction and proration by state authorities reduced crude oil production approximately one-third as compared to the prec~ding month or the corresponding month last year. Bituminou~ coal production was the smallest for that month on twelve years' records. Building operation~ in the principal cities expanded slightly as compared to July, but were substantially smaller than in the like month of all preceding years since 1920. Banking and Credit The combined statements of fifty-four reporting member banks in leading cities of the T·e nth District reflect slight decreases in the four weeks between August 12 and September 9 in loans and discounts, investments, and time deposits, and an 0.2 percent increase in net demand deposits. . These same banks reported th,eir loans and ··discounts, net demand deposits, and time deposits as of September 9 were 18.6, 11.3, and 4.3 percent, respectively, smaller than on September 10, 1930. Total investments increased 14 percent during the year. RESERVE BANK OPERATIO NS: The weekly condition statement of the Federal Reserve Bank of Kansas City and branches as of September 9 s,howed the total of bills redis- OCTOBER I, 1931 No. IO BUSINESS IN THE TENTH FEDERAL RESERVE DISTRICT Percentages of Increase, or Decrease (-), for August 1931 over July 1931, and August 1930, and for the first eight months of 1931 over the like period in .1930. August 1931 8 Mos. 1931 Compared to Compared to Banking July 1931 August 1930 8 Mos. 1930 Payments by check, 29 cities.................. - 9.6 -24.7 -22.4 Federal Reserve Bank clearings·-··········· - 8.3 -17.3 -17.3 Business failures, number.. _ _ _ _ _ 14.0 23.2 - 2.6 Business failures, liabilities____ 26.2 -42.1 - 8.1 Loans, H member bank._.______ - 1.6 -18.6 Investments, 54 member banks_............ - 1.2 14.0 Net demand deposits, 54 member banks 0.2 -n.3 Time deposits, 54 member banks.-....... - 0.9 - 4.3 Savings deposits, 51 selected banks·-····· - 2.5 2.1 Savings accounts, 48 selected banks .... _ - 1.9 0.1 Life insurance, written·--···••·- - - - 5.5 -13.'l - 1 5.9 Distribution Wholesalers' sales, 5 lines combined...... - 1.z Retailers' sales, 35 department stores.._ 12.7 Lumber sales, 172 retail yards .............. _ -12.4 Construction Building contracts awarded, value·---··· -31.1 --73-6 Building permits in 18 cities, value.-..... 19.9 1.9 Production - 7.7 Flour----········································ o.I -13.1 -34.5 Crude petroleum.--·········-···'.····-·············· -z9.8 Soft coal...................................................... 20.l -10.4 - 13.3 Zinc ore (shipped) Tristate District....... 2 7•7 -48.8 -38.9 Lead ore (shipped) Tristate District..... . 1 3·4 - 6.i -39.o Cement._ .................................................... . --28.1 --23.8 - 3.1 Grain receipts, 5 markets IO.I -55.4 Whea.....__ _ _ _ _ ······························ Corn .. :........._ _ _ _ __ -40.2 - 8.o -42.0 -50.8 - 7.8 Oats·---·········· ·_- - - - - - - - Rye _ _ _ _ -68.I -38.4 -98.7 -66.2 -82.5 92.8 B:ir ley·-····························•··•············ .......... . Kafir................... _. _ _ _ __ - 1 3.3 - 7.7 Livestocic receipts, 6 markets 0.7 35.8 33.7 Cattle .. ·-·····----···························· 62.6 -15.2 -15.0 Calves·-······················································· Hogs ............................................................ o.8 - 7.5 - 9.5 Sheep .............................. _ _ _ __ 61.8 6.6 27.8 Horses and mules ......................- .............. 44.0 9·9 Meat packing, 6 cities - 2.6 13.1 Cattle ........... ·-····················-··-···--····-··-12.0 Cah,:es.-....... -.--c,......-,.....--z5.5 8.2 Hogs ....·.········-·· ·. · ......... ·............ ............... - 5.3 Sheep ................................... ....................... 21.l - 6.6 Stocker and feeder shipment;, 4 markets - 3.1 Cattle ............. ·-················-························ Ca.Ives.......................................................... Hogs....................................,_·_ _ __ Sheep .......................................................... counted for member banks was 0.7 percent less than on August I 2, but $3,480,663 or 40.9 percent greater than on September r o, 1930. Gold reserves increased 6.9 percent in four weeks but Thi. Copy Released For Publkation In Afternoon Newspapers September 29. THE MONTHLY REVIEW declined 8.5 percent in fifty-two weeks. There was no change in the bank's holdings of United States Government securities in the four weeks, but total holdings as of September 9 were 36 percent greater than a year ago. Feder-al reserve note circulation increased S percent in four weeks, limt was slightly smaller than on the corresponding date in 1930. Principal resource and liability items of the fifty-four reporting banks and of the Federal Regerve Bank of Kansas City, as of three dates, follow: REPORTING MEMBER BANKS Sept. 9, 1931 Aug. 12, 1931 Sept. 10, 1930 Loan, and investments-total •.. $617,075,000 $626,021,000 $663,185,000 Loans and discounts-totaL__ 426,824,000 347,533,000 353,34 2,000 Secured by stocks and bonds 96,752,000 98,895,000 133,405,000 All other loans and discounts 2 93,4 19,000 250,781,000 2H,447iooo InYestmen ts-totaL_................ . 269,542,000 272,679,000 236,361,000 U. S. securities_ ..................... . 120,566,000 122,017,000 99,850,000 Other bonds, stks. and sec .._. I 50,662,000 148,976,000 136,511,000 Reserve with F. R. bank.-........ . 51,481,000 56,034,000 55,569,000 Net demand deposits ................. . 432,786,000 487,880,000 431,130,000 Time dep9siu .... _ _ _ _ __ 202,276,000 209,394,000 200,427,000 Government deposits ................. . 986,000 FEDERAL RESERVE BANK Sept. 9, 1931 Aug. 12, 1931 Sept. to, 1930 Gold reserves.____ '/, 97,928,262 '/, 91,639,269 '$107,007,100 Reserves other than gold·--······ 7,041,774 7,265,619 5,658,061 Total reserves_ · · - - - - 104,970,036 98,904,888 112,665,161 Bills discounte.u .--- - - u,990,512 12,0731105 8,509,849 Bills purchased .. _ _ _ _ 7,293,644 3,702,330 12,16o,277 U.S. securities ......... _ _ _ _ 39,077,000 39,077,o«> 28,736,000 Total bills and securities............ 58,921,156 55,632,435 49,4o6,126 Total resources ..... _ _ _ _ 196,368,877 187,371,281 203,511,123 F. R. notes in circulation.......... 69,162,740 64,067,240 69,347,480 Total deposits .. _ _ _ _ _ 90,457,437 86,380,483 89,34-2,789 The discount rate of the Federal Reserve Bank of Kansas City, on all classes of paper and all maturities, temained unchanged at J percent. SAVINGS: Deposits to savings accounts in fifty-one selected banks in leading cities of this District declined 2.5 percent between August I and September 1, but on the latter date were 2.1 percent larger than on September 1, 1930. The number of savings accounts in forty-eight banks, as of September 1, was 1.9 percent less than one month earlier, but 0.1 percent larger than on the corresponding date last year. The totals follow: Savings Accounts 48 Banks · Septcml>er 1, 1931.........·-··········-··-·-429,533 August 1, 1931 ..............................•........ 437,9 20 September I, 19.30................................ _ 429/l70 Savings Deposits 51 Banks J132,611,932 136,074,822 129,842,712 RESERVE BANK CLEARINGS: Check collections through the Federal Reserve Bank of Kansas City and branches in August were 8.o percent smaller, as to the number of items 1u.ndled, and 8.3 percent smaller in the aggregate amount than during July. Compared to August, 1930, there was a decrease of 7.1 percent in the number of items and 17.3 percent in the dollar amount. The clearings totals: ITEMS August ........... ·-······- J-.Jy.--·······-····-········ Eight rne>nths·-··-··· 1931 5,069,163 5,510,202 43,617,256 AMOUNT 1930 1931 19jo 5,459,143 J 682,896>000 $ 825,760,000 5,987,125 744,991,000 919,390,000 46,346,952 5,788,490,000 6,999,927,000 PAYMENJ:S BY CHECK: Debits by banks to individual accom1ts, reported from twenty-nine cities in this District for the four weeks ended September 2, decreased 9.6 percent as compared to the preceding four weeks ended August 5, and were 24. 7 percent smaller than in the corresponding four weeks ended September 3, 1930. Every city but one reported a decrease as compared to last year, with those cities located in the oil producing area reporting the largest and those in the western part of the District the smallest percentage decrease. Cumulative figures for the thirty-five weeks of the current year to September 2 show a decrease in payments by check, for the District, of 22.4 percent as compared to the like period last year, as against 26.2 percent reported for the United States. PAYMENTS BY CHECK FouR WEEKS ENDED Sept.2, 1931 Sept.3,1930 $ 9,237,000 i 10,649,000 Albuquerque, N. M.·--·········· Atchison, Kans·---~3,170,000 5,241,000 Bartlcsville, Okla. _ _ __ 14,646,000 25,350,000 Casper, Wyo, _ _ _ _ __ 5,200,000 5,484,000 Cheyenne, Wyo ....................... 5,508,000 5,563,000 17,240,00::> 12,987,000 Colorado Springs, Colo.·-······· Denver, Colo ....... _ _ __ 127,141,000 I 51,469,000 10,644,000 19,079,000 Enid, Okla·-········- - - Fremont, Nebr _ _ _ __ 2,718,000 2,770,000 2 ,555,000 Grand Junction, Colo ............. 2,390,000 Guthrie, Okla. _ __ 1,634,000 2,500,000 16,184,000 17,525,000 Hutchinson, Kans ......·-··-····· Independence, Kans .............. . 4,322,000 7,759,000 8,398,000 5,939,ooo Joplin, Mo ....... ··············-········ Kansas City, Kans................ . 12,369,000 16,879,000 278,793,ooo Kansas City, Mo..................... 365,489,000 Lawrence, Kans ....................... 3,076,000 3,590,000 2 000 26,948,000 Lincoln, Nebr.·--·······-············ 5,395, Muskogee, Okla ...................... . 6,063,000 8,340,000 Oklahoma City, Okla ............ . ~,865,000 98,007,000 Okmulgee, Okla ...................... . 2,387,000 3,769,000 Omaha, Nebr........................-. 153,580,000 188,449,000 3,621,000 4,097,ooo . Pittsburg, Kans·----···· 15,823,000 Pueblo, Colo.·-········ ................ 15,551,000 Salina, Kans .......- .................... 1:2,220,000 8,311,000 29,878,000 41,767,000 St. Joseph, Mo.·-·········-········ 13,419,000 16,564,000 Topeka, Kans·-···················· 72,225,000 127,667,000 Tulsa, Okla...·-························· 51,624,000 38,969,000 Wichita, Kans·--···················· Total 29 cities, 4 weeks.......... $ 950,274,000 Total 29 cities, 35 weeks ........ 9,240,398,000 2 United States, 4 weeks·--······· 3 ,953, 299,000 United States, 35 weeks.---··· 366,345,958,000 Percent Change - 1 3.3 -39.5 -4'.l.2 - 5.2 - 1.0 -24.7 -16.1 -44.2 1.9 - 6.5 -34.6 - 7.7 -44.3 -29.3 -26.7 - 2 3.7 -14.3 - 5.8 - 2 7.3 ..-33.8 -36.7 -18.5 -11.6 - 1.7 -32.0 -28.5 -19.0 -43.4 -'.24.5 $ 1,262,763,000 ---24.7 II,902,175,000 42,186,108,0-::x, 496,351,659,000 -22.4 ---21 .9 ---26.2 Business Failures Commercial failures in the Tenth District, reported by R. G. Dun and Company, were more numerous in August than in any month since March or any August since 1925. The amount of liabilities irtvolved in August failures was as usual larger than in July, and, with the exception of August, 1930, was the largest reported for any like month since 1926. The record of failures and liabilities: TENTH DISTRICT Number Liabilities 122 $ 1,706,046 August 193r.__ ··········-··········· July 1931 ................................ 107 1,351,878 99 2,944,200 August 1930·--······················· Eight months 1931:... ......... _. 956 16,666,243 982 18,144,363 Eight months 1930........ ·-····· UNITED STATES Number Liabilities 1,944 $ 53,015,132 1,983 60,997,853 1,913 49,180,653 19,o34 484,520,354 17,712 426,096,u3 Life Insurance The Life Insurance Researcla Bureau reported total ·sales of new paid-for ordinary life insurance in the seven states of this District as smaller iri August than in any preceding month since January, 1927, or any August since 1924. ·Every state in the District reported their sales in August of this year as smaller than in August, 1930, with a combined total decrease of 13.2 percent. Trade RETAIL: With the approach of the new school year there was a seasonal upturn in retail trade as measured by the dollar sales of thirty-five department stores located in sixteen principal cities of the Tenth District. ·The increase of 12.7 percent over July was slightly smaller than last year and somewhat smaller than is usual for the season. August and the cumulative sales .1 THE MONTHLY REVIEW RETAIL TRADE AT 35 DEPARTMENT STORES IN THE TENTH F.ED£RAL RESERVE OISTJUCT COLLECTIONS ACCOUNTS RECEiVABLE STOCKS (RETAIL) SALES STocic. TuaNov&J. Aug. 1931 Stores Aug. 31, 1931 Aug. 1931 8 Mos. 1931 Aug. 31, 1931 compared to compared to 8 Months Report- compared to compared to compared to Aug. Aug. 1,30 ing Aug. 1930 8 Mos. 1930 July 31,1931 Aug. 31,1930 1931 1930 1931 1930 July 31,1931 Aug. 31,1930 July 1931 - 1.2 Kansas City..... 4 .18 1.68 1•57 -10.4 .18 -4-2 -12.4 -10.5 - 6.4 - 1.7 9.9 -7.a, ~nver.............. 5 .26 1.80 1.73 2.1 -0.7 -10.9 - 13.5 - 7.2 3.4 - 15.7 -12.0 -20.2 Oklahoma City 3 .20 6.8 --28.9 -II.3 .25 1.88 2J'l - 7.2 --25.4 - 15.9 -22.2 .21 .21 2.02 1.14 0.4 - 6.5 -15.2 -13.8 8.4 -1.7 - 1.9 Lincoln·-·····-···· 2 --21.2 Topeka.-........... 3 .-21 .21 1.52 1.37 - 8.2 -17.0 - 1.9 - 7.2 - 3.4 -4-5 - 1 3.5 -17.6 .22 -22.5 -13.6 .24 2.50 2.31 1.3 -5-7 -25.4 - 17.9 Tulsa·-····-··-····· 3 4-4 ~6.6 o.6 Wichita ......... _. 3 -16.0 .20 .20 1.78 1.5-4 -.l4.6 -13.2 - 8.8 -14.9 13.0 -10.2 Other Cities._._ 12 -18.2 .IS .'lI 1.75 1.78 15.0 -0.9 -2.5 - 17.3 - J.O - 9.5 -~ Tota NOTE: 35 -17.I - 8.8 7.7 .20 -10.3 .'22 1.80 Percentage of collections in August on accounts July 31, all stores reporting 32.9. for the eight months of the current year were 17.1 and 8.8 percent, re~ectively, less than for the corresponding month and eight months of last year. Stocks as of August 31, though 10.3 percent below the same date last year, had increased 7.7 percent as compared to July 31. Collections in August averaged 32.9 percent of accounts outstanding July 31, compared to 35.5 percent of outstanding receivables collected in August, 1930. WHOLESALE: Contrary to the usual seasonal trend, wholesale trade, as reflected by the combined dollar sal(ls of five reporting lines, declined slightly during August. Wholesalers of drygoods and furniture reported their August sales as 38.3 and 11.6 percent, respectively, above their July sales, but wholesalers of groceries, hardware, and drugs reported their sales as 13. I, 12.9, and 7. 7 percent, respectively, smaller than in the preceding month. All lines reported sales in August this year as substantially smaller than in the like month last year. Groceries was the only line to report larger stocks on hand August 31 'than one month or one year earlier, and also the only line to report increased collections during the month as compared to the preceding month or the corresponding month in 1930. Lumber Sales of lumber at 172 retail yards in this District during August were, contrary to the usual seasonal trend, 12.4 percent smaller than in July and 23 percent smaller than in August, 1930. Total sales in board feet for the eight months this year were 25.1 percent smaller than in the corresponding eight months last year. Stocks on hand August 31 were slightly smaller than one month earlier and Ir percent smaller than on August 31, 1930. The percentages of decrease in August business of the reporting retail yards, as compared to July this year and August of last year, are shown in the following: August 1931 Compared to July 1931 August 1930 Sales of lumber, board feet.:.......................................... -12.4 Sales of all materials, dollars_.· · · · · - - - - - - - 6.3 Stocks of lumber, board feeL ....................................... - o.8 Outstandings, end of month.......................................... - 1;6 Collections during month ......................... ·-·················· - Reporting Stores Dry Goods.--··················· 6 Groceries_ .. _ _ _ _ 5 Hardware-.• - ~ - 9 Furnitur...._____ 6 Drugs.-..· - ~ - - 5 9. 5 WHOLESALE TRADE SALES Aug. 1931 compared to July 1931 Aug. 1930 38.3 -13.1 -I'l.9 11.6 - 7.7 -23.0 -15.5 --28.6 -38.0 -'J.6.0 3.1 - l:>ISTRICT Shipments Stocks T£N''llH Prod'n Aug. 1931._. July 1931.... Aug. 1930.._ 1_;196 1;234 1,663 1 7.9 - 9.8 1,353 1,331 -i,704 Prod'n 2,075 2,'233 2,146 U NITED STATES Shipments Stock1t 13,549 13,899 17,821 I 5,172 I 5,545 20,299 'l4,31 I 25,934 23,824 Building Official repor~ from eighteen cities in this District as to the number and value of permits issued during August this y~ar disclosed a slight increase in both items as compared to July. There were fewer permits issued in August than in any August of record, and although the estimated cast of construction was 1.9 percent greater than in August, 193q, it was, with that exception, the smallest reported for any August since 1920. The value of building contracts awarded if) this District, as a. whole, in August was .reported by the F. W. Dodge Corporation at $8,31'l,198, the smallest for any month sinoe May, 1926, and was JI.I percent less "than in the preceding month and 73.6 percent less than in August last year. Residential construction increased 12.8 percent as compared ·to July and 16 percent as compared to August, 1930. The total value of all building contracts awarded in the District in August, with comparisons, as reported by the F. W. Dodge Corporation: August ............. . July.- ................ 8 Months .......... 11.0 - Cement T.ENTH --23.2 ~6.4 I.4 The United States Bureau of Mines, Department of Commerce, reports the production of Portland cement at mills in this District in August as 3.1 percent less than in July, and 2i.1 percen1: less than in August, 1930. Shipments exceeded production and were slightly larger in August than in the preceding month, but 20.6 percent smaller than in the corresponding month last year. Stocks were again reduced and on Au~ust 31 were the lowest since October 31, L930, and 3.3 percent smaller than <!>n August 31 of that year. Production, shipments, and month--end stocks of Portla.nd cement in the Tenth District and the United States are sh~wn in the following table in thousands of barrels: --23.0 -32.4 - - J.75 Collections same month last y-ear 35-5- DISTRICT 1931 $ 8,312,198 I2,o6o,054 IIo,825,622 UNITED STATES 1930 1931 1930 $ 31,454,577 $ 233,106,100 1, 347,318,300 00 19,180,779 285,997,3 367,pil,400 221,300,145 2,327,33o, 2oo 3,354, 235,000 IN THE TENTH FEDERAL RESERVE DISTRICT OuTSTANDIN.Cs Aug. 31, 1931 compared to July 31, 1931 Aug. 31, 1930 - - 8.I 0.7 2 •.J 3.S o.6 -14.8 Cot.Lacr10Ms Aug. 1931 compared to July 1931 Aug. 1930 -11.8 -18.~ O.I 2 •.3 5-4 -n.I -16-4 44:5 -11.3 - --2916 --;35.2 -24.5 8:J -IO.I STOCKS Aug. 31, 1931 compared to July 31, 1931 Aug. 31, 1930 - 3-5 - 8.7 3.8 Even - 2.7 - 1 7.5 22.7 -16.4 -32.2 -17.2 THE MoNTHL y REVIEW 4 BUILDING PERMITS IN TENTH DISTRICT CITIES PEltMlTS EsTUUTllD CosT 1931 1930 1931 1930 Albuquerque, N. M, ___ f, $ 132,034 94 54 52,9°9 Cheyenne, Wyo ............... 21,631 110,936 30 50 Colorado Springs, Colo ... 28 2 5,9 1 5 14,835 43 Denver, Colo ................... 766,200 436 5o6 5+4,400 Hutchinson, Kans ........... 30 14,705 43,545 39 18 Joplin, Mo ....................... u3,250 19 43, 15° Kansas City, Kans ......... 43,180 70 2o,493 33 Kansas City, Mo, ________ 195 130 323,000. 575, 200 Lincoln, Nebr 70 566,315 159, 147 51 Oklahoma City, Okla ..... 1,030,866 2,010,400 151 254 Omaha, Nebr. 86 69 291,090 499,66o Pueblo, Colo ..- ................. 28,923 32,435 73 74 16 20,020 78,400 27 Salina, Kans.·-·····-········6 I'J. Shawnee, Okla ................. 9,030 5,000 St. Joseph, Mo .............-. 21,185 41 41 5°, 2 55 66 Topeka, Kans 120,845 40 169,233 121 Tulsa, Okla 66 444,863 431,859 Wichita, Kans ................. 222,838 104 134 52 4,552 Total 18 cities, August... Total 18 cities, 8 mos .. - 1,749 15,426 f, 4,825,844 _37,110,892 $ 4,736,455 55,354, 137 Crops Crop conditions of the seven Tenth District states combined were not, in general, as promising on September I as one month earlier. Prospects improved somewhat in the eastern third of the District during August, but drouth and lack of irrigation water, particularly in the western half of the District, affected crops adversely. Between August I and September I corn, oats, spring wheat, burley, broom corn, and white potato crop prospects for this District declined, and those of grain sorghums, tame and wild hay, cotton, sweet potatoes, and all of the major varieties of fruit except pears increased, according to estimates of official Federal and state crop reporting boards. This year's production of winter wheat, corn, grain sorghums, cotton, and all varieties of fruit will be larger, but that of all varieties of hay, spring wheat, barley, beans, broomcorn, sugar beets, and white potatoes will be smaller than last year. The state crop reporting boards summarized the September I crop conditions in their respective states, in part, as follows: COLORADO: "Crop prospects on September I were the lowest of record as a result of hot weather, extreme shortage of irrigation water, and insect damage. Corn prospects were reduced during the month 37.5 percent, potatoes and beans 25 percent, and oats and barley 17.5 percent, with the hay crop the shortest since 1922, pasture conditions the lowest of record, and the smallest potato crop since 1916 indicated." KANSAS: "The Kansas corn crop more than held its own from a grain yield standpoint during August although the reported condition in percent of normal declined from 66 percent on August 1 to 59 percent on September I. The average yield for the state is indicated as 19 bushels per acre. Yields above average are expected in northeastern Kansas and also in the southeastern border counties. Grain yield prospects are very poor in central and southcentral areas. The crop in northcentral Kansas and the western third of the state is fair to poor, with yield possibilities average or less. Most of the crop in the southern half of the state is beyond danger of frost damage while some corn in the two -northern tiers of counties would suffer some injury if frosts are early. Weather since September 1 has been favorable for bringing corn to rapid maturity. The condition of pasture at 69 percent is below average but hig~er than last year. Alfalfa, other tame hays, wild hay, and broom corn yielded somewhat higher than expected a month ago. Grain sorghums, oats, barley, winter wheat, and flax are unchanged. All fruit crops are above last month's estimate. Apple production is the largest since 1924." MISSOURI: "Missouri farm crops are showing generally higher yields in 1931 than in 1930, corn more than twice as much. Wheat and oats are considerably higher, and hay crops are much better than last year, with fruits the best for several years. Most all of the southwestern counties have an excellent corn crop, some of the best since 1917. Southeast counties have a good crop, although early drouth reduced yield. The central counties improved during August, but the northern section lost in prospect during August because of drouth. Corn is maturing fast and should be well out of way of frost by the latter part of September. Hay crops are heavier than last year, including practically all varieties." NEBRASKA: "The condition of the corn crop slumped from 71 percent a month ago to 49 percent on September I. The crop is unusually spotted and uneven throughout the entire state. Corn north of the Platte river suffered the greatest injury and northeastern Nebraska has one of the poorest crops ever produced, with yields ranging from a failure to a few bushels per acre. Counties south of the Platte river fared better, but owing to the spotted condition and the fact that a number of the counties have corn ranging from poor to practically no corn at all, this territory as a unit will not have an average crop. Counties along the Missouri river and the two southern tiers of counties, while spotted, may be rated as having a good crop of corn taken as a whole. The poor yields of potatoes in southern and eastern Nebraska offset the improvement to the commercial crop in western Nebraska and the high yields in the Kearney district. The commercial apple crop in southeastern Nebraska is one of the best in years." NEW MEXICO: "Corn, beans, sorghums, and cotton doing well; cutting corn becoming general and cotton bolls opening slowly. Threshing small grains in north; some seeding in east." OKLAHOMA: "Deficient moisture and high temperatures during August, with hot winds prevailing the latter part of the month, caused a rapid deterioration of crops in all sections with the exception of the eastern third of the state where climatic conditions have been more favorable to plant growth. Extremely high temperatures since the first of September have been very unfavorable for the growth of corn, grain sorghums, cotton, and hay." WYOMING: "Wyoming crop production has been reduced by summer drouth and shortage of irrigation water. The production of the leading crops is much below last year and generally below the average of the past five years. Occasional showers during August prevented further reduction in crop yields and crops are generally in about the same condition as a month ago. The production of feed crops is generally short and not sufficient for livestock needi in northeastern Wyoming and a few other sections." The unusually hot and dry weather the first half of September caused additional injury to pastures and ranges, reduced crop prospects, and delayed fall plowing. Cotton picking, bean pulling, corn cutting, fall plowing, and winter wheat seeding had begun, or was fairly well advanced, by the third week in September. CORN: September I conditions promised a 1931 corn crop for this District of 422,078,000 bushels, 36,079,000 bushels less than was indicated one month earlier, and 5,029,000 bushels less than was produced last year. In Nebraska, Colorado, and Wyoming this year's crop will be considerably smaller than last year or the five year average, whereas, these states produced a crop somewhat above the five year average last year. Missouri, the second, and Kansas, the third, largest corn producing states of the District will have a much better crop this year than last, that of Missouri being over twice as large. The estimated production of corn in each of the seven states, the Tenth District, and the United States as of September I in thousands of bushels, with comparisons: Colorado..·--·-···············-· Kansas .... Missouri ............................ Nebraska .......................... New Mexico. _____ ............ Oklahom Wyoming.. Seven state"----Tenth Distric ......._ _ _ United State...___ _ Estimated Estimated 5 Yr. Aver. 1930 Sept. 1, 1931 Aug. 1, 1931 Production 1925-1929 22,620 14,138 18,551 4 1 ,234 82,908 126,027 126,793 II9,394 170,204 165,537 174,734 73,935 232,208 247,106 186,7i6 223,580 6,248 5,680 3,612 3,544 36,436 56,605 54,968 45,544 3,261 2,724 2,724 3,696 565,615 422,078 2,715,357 593,707 458,157 2,775,301 488,927 427,107 2,093,552 6o2,538 463,428 2,760,753 COTTON: A cotton crop of 1,280,000 bales is estimated for this District as compared to 860,000 bales produced in r930. Dry weather and hot winds in western Oklahoma the latter part of August caused plants to wilt, small bolls and squares to shed, and bolls to open prematurely. Boll weevils increased rapidly and boll worms caused muc:h damage in some localities in the eastern part of the state. New Mexico reported bolls opening slowly. Cotton picking had begun in northern Oklahoma anri southern Missouri, and was well advanced in southern Oklahoma and New Mexico by September 21. THE MONTHLY REVIEW Estimates of th is year's cotton production follow: Pro_duction (500 lb. Bales) Estimated Ginnings Sept. I Sept. I Aug. I 1930 1931 1931 1,254,000 1,200,000 854,000 151,000 239,000 231,000 95,000 86,ooo 99,000 Condition P ercent of Normal Sept. 1 Aug. 1 Sept. I 1931 1931 1930 Oklahoma.___ . 68 78 42 Missouri.·-······ 85 86 42 New Mexico... 91 90 82 Three stl'. tes.United States. 1,588,000 68 74.9 53.2 I 5,685 ,000 1,517,000 I 5,584,000 1,104,000 13,932,000 FRUITS A D VEGETABLES: Peach and grape harvest was practically completed in the southern half of the District by September 21 and apple and pear harvest had begun. Hot winds the forepart of Sep tember caused the earli_e r fall varieties of apples to ripen prematurely and drop, resulting in a heavy loss to producers as the fruit had to be marketed immediately. Jonathans were affected the most and private estimates place the drop of this variety at 50 to 75 percent of the crop. Reports indicate that home canning of fruits and vegetables, prices of which have been unusually low, has. been more extensive this year than in many years. WI T E R WHEAT SEEDL TG: A reduction of 12 percent in winter wheat seedings in the United States this fall, is indicated by the United States D epartment of Agriculture's report on farmers' s~eding intentions as of August 5. According to the report, this is the smallest acreage intended since intentions were first determined in 1923, and, if fully carried out, would mean the smallest acreage sown in any fall since 1914. Seeding in this District was ret arded somewhat the latter part of August and the forep art of September by dry soil. This year's intentions as compared with t he intentions and actual seedings in 1930 in this District and the United States: WINTER WHEAT SEEDING 1 T ENTIONS 1930 1931 Percent of Acres Acres In tended In tended 1930 sown 1,630,000 99:::.,ooo Colorado.-- -····· 77 1:::.,051,000 10,890,000 85 Kansas.·- ··-··-·· Missouri ...._. ___ 1,205,000 1,253,000 90 80 3,310,000 2,693,000 Nebraska .......- • New Mexico.__. 196,000 404,000 75 Oklahoma.____. 3,798,ooo 89 3,909,000 131,000 Wyoming.......... 230,000 I'l 5 Acres Sown 1,28 8,000 12,812,000 1,392,000 3,366,000 261,000 4,267,000 184,000 Seven states...... United States.- 23,570,000 42,422,000 20,052,000 37,344,000 88 22,640,000 41,532,000 Changes in Farm Ownership There were fewer voluntary sales and trades of farms in each of the seven states of this District and in the United States in the twelve months' period ended March r5, r931, than in the preceding twelve months. All states but two, Missouri and Colorado, reported a larger num her of forced sales due to delinquent taxes or foreclosures during the year than in the preceding year. New Mexico was the only state to report a larger ratio of voluntary than mvoluntary sales. The number of farms per 1,000 changing ownership by various methods, as reported by the Bureau of Agricultural Economics, United States Department of Agriculture, are shown in the following: Voluntary FORCED SALES AND RELATED DEFAULTS Delinquent Foreclosures, sales and Total taxes etc. trades 1931 1930 1931 1930 1931 1930 1931 1930 9.4 20.3 18.8 26.2 28.2 5.9 Colorado.--··-··········---- '24.5 39.5 2.6 20.0 14.8 23·4 17•4 3.4 Kansas .........·-··-··--·-- 22.I 26.0 Missour· 21.8 26.1 4.2 H 23·7 24.6 27•9 30.0 2.6 I.I 21.8 1 5·9 24.4 17.0 20.2 27.8 Nebraska ..... 4.I 22.3 12.4 26.2 16.5 New Mexico 34.4 44· 2 J.9 15·3 2'.2,9 Oklahom 9.8 3.4 22.4 18.2 32.2 '21.6 Wyoming_ 29.0 4 2•3 10-4 13.1 20,I r7.3 30.5 3o.4 United StateS.--········--· 19.0 23.7 7-4 5-1 18.7 15•7 26.1 20.8 5 CROPS IN THE SEVEN TENTH' DISTRICT STATES AND THE UNITED STATES The ~931 production as estimated ~n the basis of September I conditions by the United States Department of Agriculture and compared with the Au2Ust 1 estimates and the 1930 production. (In thousands of uhits, ooo omitted.) SEVEN STATES UNITED STATES Sept. I Aug. t 1930 Sept. 1 Aug. r 1930 Prod'n 1931 1931 Prod'n 1931 1931 Corn, bu ..- .............. 565,615 593,707 488,927 2,715,357 2,775,301 2 , 0 93,552 Oats, bu·- ·····-·········210,359 213,536 209,276 1,160,877 1,169,657 1,358,052 612,268 Winter wheat, bu ... 399,702 399,702 314,955 775,180 775,180 1 94, 0 57 Spring wheat, bu.... 5,156 5,699 II,452 90,816 95,340 Barley, bu ......·-·-··· 41,6o8 44,106 55,u 2 211,391 221,259 334,971 Grainsorghums,bu. 59,100 55,475 33,838 . 134,376 124,509 86,514 Broomcorn, tons ..-. 37,800 38,500 · 41,100 47,900 48,500 50,200 Beans, bu ........... -.. 2,591 2,944 51641 18,725 20,659 21,907 Tame hay, tons .. _.. 13,o62 tz,676 13,434 77,859 i7,587 77,850 Wild hay, tons ........ · 31469 3,449 4,487 9,06o 8,593 II,825 Alfalfa, har, tons._.. 7,063 6,816 7,984 26,01 6 25,869 ~8,615 Potatoes, bu. _........ 30,741 33,774 43,808 361,036 370,580 343,236 Sweet potatoes, bu. 3,432 3,248 2,455 83,949 80,669 62,230 1 63,543 Apples, bu ............... 13,544 u,313 4,947 222,96'2 21 7,971 Peaches, bu............. 4,449 3,839 1,038 77,7n 77,074 53,61 7 27,577 Pears, bu................. 1,257 1,297 555 24,II4 24,143 Grapes, tons ............ 20,982 20,724 16,943 1,652,842 1,783,683 2,459,557 Cotton, bales.......... 1,588 1,517 1,104 15,685 15,584 1 3,93 2 Peanuts, lbs.·-······-· 17,500 l'l,ooo 913,350 72 6,745 Pecans, lbs ..... ·---··· 12 1 500 I 1,390 76,120 43,99° Sugar beets, tons.... 31858 5,094 7,130 Grain Marketing Since the advent of the combine, receipts of wheat at the five principal grain markets in this District are seasonally smaller in August than in July, but this year's seasonal decline of 55.4 percent was the largest of record and reflects the determination of producers to hold their grain for more favorable prices. The August receipts were only 10.1 percent larger than in August, r930, although the 1931 crop is estimated as 25 percent larger than that of last year and the largest of record. The August receipts have been exceeded in two other years, 1928 and 192-4August receipts of all other classes of grain were unusually low, marketings of corn, oats, rye, and kafir being smaller than in the preceding month or the corresponding month last year. Arrivals of barley were seasonally larger than in July but 82.5 percent smaller than in August, 1930. Receipts of corn during August were, with the exception of 1929, the smallest for that month since I 920, barley the smallest since 1922, kafir since 1923, and oats and rye the smallest for any August on records beginning in I 920. Receipts of six classes of grain at the five markets during August are here shown with comparisons: 13:i.r ley Bushels 7,5 00 132,800 16,000 8,750 9,100 Kafi r Bushels 1,300 38,500 Aug. 1931.... 39,774,400 '.l,697,400 854,000 4,500 . 174,150 July 1931.... 89,156,050 2,930,450 926,100 7,300 90,350 Aug. 1930_ 36,u5,620 4,512,950 1,734,500 344,800 994,650 39,800 45,900 43,100 Hutchinson Kansas City Omaha ........ St. Joseph ... Wichita.-··-· Wheat Corn Bushels Bushels II,412,900 5,000 14,425,600 1,306,500 879,2.00 7,o33,6oo 2,340,800 495,000 11,700 4,561,500 Oats R ye Bushels Bushels 1,500 208,000 4,500 384,000 256,000 4,5 00 PRICES: There was a 5.½ cents per bushel net increase in high protein wheat prices at Kansas City in August, but lower grade wheat showed practically no change. No. I hard and dark wheat opened the month at 41 to 47¼ cents per bushel and closed at 39,½ to 53 cents per bushel. Corn declined approximately 9 cents per bushel during the month, No. 2 mixed opening at 49,½ to 50½ cents and closing at 40,½ to 41 cents. Oats increased 5 cents per bushel, opening at 21 to '.22,½ cents and closing at 26 to 27 cents. August, 1930, closing prices were: No. I hard and dark wheat 81,½ to 90; No. '.2 mixed corn 94 to 95½; and No. 2 .white oats 41 to 42 .cents per bushel. 6 THE MoNTHLY 'REVIEW Flour Production RANGES: Range areas of the Tenth District fai]ed to improve m·aterially in August and the September 1 supply of range feed was the shortest for that date reported in the nine years of record. New Mexico and Oklahoma were the only two Tenth District states to report a higher September I range condition this year than last, and 'the New Mexico condition equalled the five year average, according to reports of the Division of Crop and Livestock .Estimates, United States Department of Agriculture. Hay and grain crops are also short. Cattle and sheep have held up very well and are reported as :gener.ally in fair to good condition except in a few sections. The teports indicate an early forced movement of cattle and sheep to market from the drier areas but ·a decided tendency to hold cattle, especially breeding cattle, where finances and feed supplies will permit. Few country sales of tattle have been made and contracting of feeder lambs was below normal in August dire to price uncertainty, but the demand broadened in September and -sales ':Were being tnade at $4.00 to ,'$5.00 i'per hundred pounds, With the majority selling at the higher figure. Some feeder lambs were contracted in Wyoming on ·a sh·are feeding basis. Forced liquiaation due to drouth and limited credit have developed a varied program of trading. The lamb crop in the western sheep states is estimated as 9 percent larger this ye'a r ·than last. PRICES: Fed cattle advanced 50 .cents to '/,1.50 in August as compared to July but declined steadily the forepart of September, and the 'top at Kansas City on September J:6 was $8.~o per hundred pounds as compared to '/,10.50 paid the third week in August, which price equalled the ·year's high. Grass cattle w.ere 50 cents 'lower for the month. Hogs declined on an average 'of about $2 per hundred during August and the decline continued into Sef:>tember, with top hogs bringing '$5.60 September 17 with but few butcher 'hogs selling below $5.00. This was the lowest price level since 1908. The lamb market closed the month 25 cents lower than the July close and sheep declined 50 cents to $1.00. The month's top on lambs was '/,7.75, but, by September 17, prices had declined until lambs were purchased at '/,6.50 and down, which was the lowest price level since 19II. Compared to August, 1930, this year's prices show average declines per hundred weight, as follows: cattle '/,2; hogs $4; sheep '/,I: and lambs J2.25. Flour mills in this District produced only o. 1 percent more fiour in August than in July, as coin~ared to-a five year average seasonal increase of _approximately 10 percent. The August production, although the largest for any month since October, was 7.7 percent smaller than in August, 1930, and the smallest August production recorded since 1927. Mills operated at 68.4 percent of capacity during August, compared to 65.9 perceht i"n July and 74.2 percent in August, 1930. The production figures for the principal milling centers in this District as compiled from weekly reports to the Northwestern Miller: August 1·93'! Barrels Atchison ... ,. .............................. - .. , 121,~'.l Kansas CitY·--····························· Omaha .......................................... Salina ......................................- ... . Outside....... '. ................................. . 635,415 100,331 180,505 90,244 126,006 9 14,45 1 July 1931 Barrels 141,610 '65"0,438 1 (2,142 2o5,474 72,783 137,162 845,904 Total.............................................. 2,167,974 z,165,5I3 St. Joseph·-----···············:········--··· Wichit, .. ~ .................................... . August 1930 Ba·rrels 142,973 ·7 16,:nz u6,884 201,,69 59,93 1 f64,127 2,341,669 939,853 Livestock MARKET MOVE 1ENTS: The movement of all classes of meat animals to the six primary livestock markets in the Tenth District in August displayed more than rhe customary increase ov~r the July movement. The increase in the movement of cattle .and calves in August, as compared to July, was the largest since 1927 and of sheep the largest since 1921. Fewer hogs were received at these markets in August than in the preceding month, but the percentage d~crease was the smallest since I 928. The receipts of cattle during the month were the largest since last October and the largest for any August since 1927, and receipts of calves were the largest for any month ·si-nce -becember but the smallest for any August on thirteen years' records. Fewer hogs were received at these markets, including hogs shipped to packers' yards, than in any month since last August, and, with that exception, than in any August since 1925. More sheep were received than in any month since last October -0r any August since 1919. · Receipts of horses and mules during August totaled 3,61'.2 head and were the largest since May, but, with the ·exception of August, 1930, the smallest for any ]ike month of record. STOCKERS AND FEEDERS: The movement of stocker and feeder livestock, from four Tenth District markets to feeding areas in August, was considerably larger for all classes than in the preceding month or the corresponding ·month last year. The movement of cattle was the largest for any August since 1928, of calves and hogs the largest since 1923, ·and of sheep the largest for any August in the twelve years of record. Meat Packing More cattle, calves, and sheep, and fewer hogs were purchased for slaughter at the six leading livestock ma:rket centers of the Tenth Distr,ict in August than in the preceding month. Com.pared to the corresponding month last year, the August slaughter of cattle, hogs, and sheep increased, ·and that 'of calves declined. More cattle were killed during August than in any August since 192,7. The slaughter of sheep was the largest, and of calves·the smallest, recorded for any.August in the thirteen.years records .have been co~iled. ,Including hogs shipped direct to AUGUST MOVEMENT OF LIVESTOCk IN THE tENTH DISTRICT RECEIPTS Kansa'l City ...... ................ Omaha ................................ St. Joseph ......................... . Denver-····················--······· Oklahoma City.•................ \Vi~hita ............................. . Cattle 168,945 168,369· 45;o~n '24,810 21,109 23,321 August 1931.. ........., .......... 451,651 July 1931.-..,.... .................. 332,489 :337,921 August I 930 .. --·············-· Eight months 1931 ··-····- 2,806,195 Eight months 1930 ......... 2,785,5'98 . * Includes 91, i5 hogs shi\)ped direct Calves Hogs 31,856 • 1S8,on 9,168 z35,205 '. 6;643 S.1,;170 3,-096 . 39,434 8,830 19,391 6,836 34,025 l>uttcHASED FoR SLAUGHTER STOCK.ER.S AND ·Fu:bER.S Shee-p ·134,138 444,583 137~8:So 144,831 8,184 ' 7,403 Cattle 54,644 34,133 ·9,ou 7,216 Calves 7,540 2,133 1,14.8 ,744 Hogs 9,n3 !2,52.8 700 1,307 67,-029 876,989 597;236 41,220 -645,867 $4'2,102 592,417 79, 01 4 6~5.990 367,063 6,168,486 5;994,293 431,873 l>,S-12,734 'S,6-JS,0 52 fo .packers' ffds. 105,004 40,345 61,786 530,873 548,o61 n;565 5,9 29 8,077 57,4,74 66,84-4 13,6+8 -8,302 7,4 15 71,4Q9 -93,588 Sheep 3z,36o a.oo,574 35;855 31,7~ Cattle 62,96o 9°, 145 28,67.1 u,376 10,204 7,543 210,899 300,513 186,428 92,665 188,878 17!1,473 881,687 1,462,812 635,597 1,501,274 Calves Hogs 14,898 • 144,286 144,4 29 7,o35 5,294 56,179 2,399 21, 2 99 6,466 I 5,408 2,085 31,296 Sheep 90,57 1 212,210 88,349 26,025 6,939 6,530 430,624 412,897 38,177 30,412 449,8o7 ..355,6.38 49j60 394,~52 .394,975 254,797 4,632,151 3,379,234 28~1,547 4,890,348 ,,3,618,593 7. THE MONTHLY REVIEW packers' yards, packers' purchases of hogs were the smallest since last August, and, with that exception, the smallest for any August since 1920. There were 3.9 percent more cattle, 13- percent more sheep, 1.7 percent fewer calves, and 8.i percent fewer hogs slaught~red under Federal meat inspection . in the United States during August than in the carre!tponding month last year. Cold Storage Holdings Whereas in 1930 there was a decline between August I and September I in cold storage holding·s of all commodities, this y~ar witnessed an increase in holdings of lamb and mutton, poultry, turkeys, and cheese. The increase in holdings of lamb and poultry was in excess of the five year average, but that of cheese was somewhat smaller. The increase in holdings of turkeys and the decrease in stocks of butter was contrary to the normal trend. The seasonal out-of-storage movement of beef, pork, lard, and frozen eggs during August was greater than the five year average, and that of miscellaneous meats and eggs in cases, smaller. Cold storage holdings, as of the four dates of comparison, are contained in the following table: Beef, lbs .._..................................... Pork, lbs .................,..................... Lamb and mutton, lbs............... Poultry, lhs................................... **Turkeys, lbs................................. MiscellaneQus. meats, lbs............. Lard, lbs....................................... Eggs, cases.................................... Eggs, frozen (case equivalent) .. Butter, creamery, lbs ...... -........... Cheese, :ill varieties, lbs............. *Subject to revisioi:. **Included · *Sept. I Aug. 1 Sept. 1 Sept. 1 1931 1931 1930 5-Yr. Av; 38,927 41,055 59,755 4 2,795 594,288 711,811 550,959 668,375· 1,981 • 1~892 3,977 z,411 43,059 36,438 42,589 42,139 3,360 2,777 4,496 S,Q61 66,971 . 69,026 84,3l4 68,436 95,885 121,926 88,868 153,018 9,on 9,504 10,375 9,618 3,151 3,277 3,233 z,395 104,675 115,11.1 143,089 150,oq 86,310 84,103 107,219 100,680 in Poultry. (ooo omitted). Petroleum Crude oil production in this District declined 29.8 percent in Aug1J.st as compared to July, according to estimates based on daily average production reported by the American Petroleum Institute. In Oklahoma, where the flow from the larger wells has been shut down by martial law since August 4, production declined 41.4 percent, but the combined total output for the other four oil producing states of the District . increased 4.3 percent over the July output. Compared to August, 1930, production in the five states registered a decline of 34. 5 percent. The east Texas field, shut down by executive 'order August 17, was reopened under proration restrictions September 5, limiting production of each of the 1,600 wells previously shut down, and· new wells brought in, to 225 barrels per day. Following orders restricting production in Oklahoma and east Texas, crude oil prices advanced rapidly until s.ome purchasers were offering from 70 cents to $1.00 per barrel for high degree gravity oil, as compared to posted prices of 22 cents per barrel the forepart of July. Refined gasoline prices also increased, but, as a result of the reopening of the east Texas field under proration and a seasonal slackening of demand~ ·declined the second and third weeks in September. ·. • . Figures showing the gross production of crude oil in July and August this year and August, 1930, follow: *Aug. 1931 Barrels 9,490,000 3,159,000 1,168,000 l'.24,000 1 ,343, 000 July 1931 Barrels 16,207,000 2,887,000 1,234,000 134,000 1,301,000 Total, five states .......................... · · I 5,284,000 Total, United States·-··-············· 71,890,000 *Estimate~ American Petroleum Institute. 21;763,000 77,961,000 Oklahoma...-·······•·······················Kansas .......................................... · Wyoming .. ;.. ;........ :....................... Colorado ... -.................................. . New Mexico....·- ··· ··············· ········· Aug; 1930 Barrels 16,962,000 3,448,000 1,517,000 133,000 1,276,000 Fewer oil wells were completed in the fi-..i:e oil producing states of the Tenth District in August than in any month in over twelve years. The number of rigs up and wells drilling in these states on September I was als_~. thC?__ sm~llest o.f record! The record of fi~ld operations: WeUs Barrels Daily CQmpleted New Prod'n Oldabonia ...- ............. . 39. 50,877 -ZJ,9 13 49 . Kansas-·········•·······-· Wyoming.................. II 1,325 0 0 Colorado...-·········-····· 0 New Mexico....·-······· Dry Wells 10 7 Gas Wells 1020 'l 104 134 436 • 76,n5 131,734 871,915 0 53 . 134 125 91 90 ~o 0 3 '.l '.ll Z.74 3 -- August I', 1931........ July 1, 1931..._........... Augus.t 1, 1930........ Rigs-Wells Drilling 36 27 58 630 678 1 ,454 Bituminous Coal There. was a seasonal increase in soft c~at production in five of the ·six coal producing states of the Tenth District in August as compared to July, the exception being Kansas, and the month's total was the largest since March, but the smallest for any August on records beginning in I 920. Soft coal production in the United States in August was smaller than for any like month of any year _since 1922, w~en strikes reduced output. . . The following summary shows the tonnage produced in August as compared with the preceding month and the corresponding month last year: Color:ido....................................... . Kansas .......... ,.. ··················-········· !viisso.uri ...................... ................. New !vlexico.................................. Oklaho1na...................................... \Vyo1ning ................. ._ .......-····-···· Total, six states..·--····················· Total, United States·-·····: ........... *Estimated. (•.\ug. 1931 Tons 385,000 164,000 225,000 100,009 170,000 376,000 J4ly 1931 Tons 280,000 * 187,000 ,,,. 204,000 100,000 123,000 288,000 Aug. 1930 1,420,000 3~,5 1 7,000 1,182,000 :19,790,000 1,585,000 35,661,000 Tons 434,000 146,000 282,000 125,000 . 168iooo 430,000 - Zinc and Lead Mining August witnessed an upturn in the production of both zinc ore and lead ore at mines in Missouri, Kansas, and Oklahoma, the Tristate ·d istrict . . The production of zinc ore during the five weeks' pt:riod ended Septembei· 5 was 27.7 percent greater and that of lead ore 13.4 percent greater than in. the preceding five weeks. Compared to the corresponding five weeks in 1930, zinc ore production declined 48.8 percent and lead ore 6.2 percent. The production of both _classes of ore during the past five weeks was the · largest for any preceding five weeks' period s,nce April. Tonnage and value of zi:11c and lead ores shipped during the five· weeks' periods under comparison: Zrnc Oklahotl\a................................Kansas .. .•··•···--······•.•···········•··-· Missouri .•..............,................... 5 weeks ended Sept. 5, 1931. ORE Ti:ins · 14,151 ' 6,1,:;..~ . 67 20,346 5 weeks ended Aug. t, 1931.. 15,936 5 weeks ended Sept. 6, 1930. 39,725 36 weeks ended Sept. 5Y 1931. 168,947 36 weeks ended Sept. 6, 1930. 276,709 LEAD ORE Value · T-ons · 2,154 325,473 140,944954 165 1,541 467,958 3,273 362,952 2,S85 · 1,257,661 · 3,490 4,007,304 20,457 10,655,870 33,527 $ Value 't, 105,170 46,090 7,840 $ 159;100 128,133 226,850 919,314 2,:150, n9 Zinc ore ·prices remained unchanged for nine consecutive weeks and closed the month at $1-3 per• ton, compared to $31 per ton l~st year. Lea,d ore prices strengthened somewhat during z3,336,ooo the month, closing at i50 per ton, $5 per ton above the July 74,853,ooo . close, but $15 per ton under a year ·ago: 8 THE ~foNTHLY R£VIEW Business Conditions in the United States By the Federal Reserve Board Jlf~(OIT lltO INDUSTRIAL PRODUCTION lmdex number of industrial production, adjusted for seasonal variation. (1923-1925 average= Joo.) Latest figure, August, 80. rue:. r Pf:R Cf NT l i..'.>j 120 110 110 IOO l!lO '"' f~- 00 '"' I ,0 7') EO ~ 19lll 1?27 1929 60 1931 1'1)0 Federal Rei;erve Board's index of factory employment with adjustment for seasonal vuiation. (1923-1925 average=100.) I .ate,t figure , August, 7• •1. rr,nn 1Zo,-- -,--- -W-l-i".:--t:_A1._i:_PR_l_f:_ S_ - . -_ 110 [_ _ _ __t - - - +- I '"' I ~ - - + -- PU~«"' _cc;,lZO --ll--- •-1 IID I j~-i-·---"-- - ,"-/"' I 1-;---_.._---t-='l\,--!..--~ l!O +--- I 6,1 : •• - + -- - -- - 90 ' - - - ~' _,-.-J..._--------'---- co ;; ..1 1°12.J f9Z9 ltll Index of United States Bureau of Labor Statistics (1926-=100). Latest figure, August, 70.2. ill 1, t,-,,,,5 ()' C,7LI .J;;J 10 l I ;..,;:1,1~rn r-~~~ er.ton i I A•!C>!,,rlo~, 9 : - - - .~- - ~ ~ 7·~ - -.,__ _ _ _ 9 o .....- / ._, !. I I I l, ,, .. s.,.,,,;,. a l ,~-x_>"' 6 ~ ~ - ~-.:-- - 1~ 1 5 ~ - - - ' - -19:'.7 192d - - - --. ' ---'--~_...,__ _ 1n 9 I 0 1931 Monthly averages of weekly figures for reporting member banks in leading C'itics. Latest figures arc averages of first three weeks in Scptcm her. Volume of industrial production and factory employment, which usually increases at this season, showed little change from July to August, and the Board's seasonally adjusted indexes consequently declined. The general level of wholesale prices remained in August at about the same level as in the two preceding months, but declined somewhat in the first three weeks of September. PRODUCTION AND EMPLOYMENT: Industrial production, as measured by the Board's seasonally adjusted index, declined from 83 percent of the 1923-1925 average in July to 80 percent in August, which compares with the previous low level of 82 percent for December, 1930. Output of steel, which ordinarily increases in August, declined further to 31 percent of capacity, reflecting, in part, curtailment in automobile produc• tion. Lumber output also decreased, contrary to seasonal tendency. Activity at textile mills and shoe factories showed about the usual seasonal changes, and production in these industries continued to be in substantially larger volurne than a year ago. In the latter pa.rt of August, output of crude petroleum decreased 30 percent, the reduction being in cast Texas, following earlier curtailment in the Oklahoma fields. In the middle of September production increased somewhat. Volume of factory employment, which usually increases at this season, showed little change from the middle of July to the middle of August. The number employed in the clothing and shoe industries and in canning factories increased, while employment at steel mills, automobile plants, foundries and car building shops declined. . Value of building contracts awarded, as reported by the F. W. Dodge Corporation, continued to decline in August and for the first eight months of 1931 was 13 percent less than in the corresponding period of 1930, reflecting decreases of I 8 percent in con tracts f9r residential building, 30 percent for public works and utilities, 54 percent for factories, and 56 percent for commercial building. Department of Agriculture crop estimates based on September I conditions were about the same as estimates made a month earlier. High yields per acre and large crops were indicated for cotton, winter whe::?.t, and tobacco, while crops of spring wheat and hay were expected to be unusually sm all, chiefly on account of dry weather. The corn crop was estimated at 2,7 15,000,000 bushels, 600,000,000 bushels larger than last year, but 50,000,000 bushels smaller than the five year average. DISTRIBUTION: Daily average freight car loadings declined somewhat in August, contrary· to the seasonal movement, while department store sales increased, but by an amount slightly smaller than is usual in August. PRICES: The general level of wholesale prices increased from 70.0 percent of the 1926 average in June and July to 70.2 percent in August, according to the Bureau of Labor Statistics, reflecting increases in the prices of livestock, meats, dairy products, and petroleum, offset in a large part by decreases in the prices of grains, cotton, and cotton textiles. Duri'ng the first three weeks of September, prices of livestock, meats, hides, and cotton declined, while prices of d airy products continued to increase. BANK CREDIT: Volume of reserve bank credit, which had increased by $240,000,000 during the month of August, increased further by $70,000,000 in the first part of September and in the week ending September 19, averaged $ 1,265,000,000. The demand for the additional reserve bank credit arose chiefly from an increase of $295,000,000 in the volume of currency outstanding. There were also . further transfers to the reserve banks by foreign correspondents of funds previously employed in the acceptance market, offset in large part by a growth of $60,000,000 in the country's stock of monetary gold. Following the suspension of the Gold Standard Act by Great Britian, more than $100,000,000 in gold was added to the amount held by the Federal reserve banks under earmark for foreign account .and there w~s a corresponding decrease in the country's stock of monetary gold. Loans and investments of reporting member banks in leading cities, after declining in July ·and the first half of August, showed little change in the three weeks' period ending_ September 9. There .was a further decline in loans on securities, while the banks' holdings of investments increased somewhat in the following week. The banks added $227,000,000 to their holdings of U. S. Government securities when an issue of $800,000,000 of U. S. Government bonds was brought out, while holdi ngs of other securities were reduced by $40,000,000. Loans on securities continued to decline and all other loans were - also reduced,-contrary to the usual seasonal tendency. Money rates in the open market continued at low level. On September 22, the rate on bankers' ·acceptances advanced from of one percent to one percent. Yields of high grade bonds increased during the last half of August and the fast part of September. Ys
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