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MR. SIEm F.;7ICZ. THE MONTHLY REVIEW Of Agricultural, Industrial, Trade and Financial Conditions in the Tenth Federal Reserve District FEDERAL Vol. 17 RESERVE KANSAS BANK CrTY, Mo., GRICULTURAL commodity prices which improved somewhat in August failed to retain any considerable portion of the advances as prices declined the latter part of that month and the forepart of September. Advances in prices of wheat, corn, butterfat, and pork have been fully discounted with prices of beef, poultry, and hay nominally unchanged. Hides and wool have advanced sharply. Cotton, although substantially lower than recent highs, is quoted above the levels of August I 5, and eggs and mutton were somewhat higher on Septemher 15 than one month earlier. Trade at both wholesale and retail improved seasonally during August, but dollar sales were markedly smaller than a year ago. Sales of thirty-four department stores declined 24 percent as compared to August, 1931, and each of the five reporting wholesale lines reported substantial recessions. Aside from a reduction in the broomcorn, white potato, and dry bean crop prospects and a slight increase in the estimates of this year's corn crop, there were no material changes during August in the 1932 Tenth District crop forecasts. Crude oil production, although larger than a year ago when curtailments restricted production, declined 4 percent as compared to July. Flour milling and bituminous coal production expanded seasonally and, responding to sharp advances in ore prices, shipments of zinc ore and lead ore were larger. No important improvement in building operations was noted with construction continuing at about 20 percent of the normal rate. Livestock marketing, meat packing, and shipments of stocker and feeder livestock to the country were, as usual, heavier in August than in the preceding month. The marketing of hogs was, contrary to seasonal trends, exceptionally heavy. A Member Bank Operations All principal items contained in the weekly condition statements of fifty-four reporting member banks in leading cities of the Tenth District, except investments in United States Government securities, holdings of which were enlarged 8.6 percent, showed substantial declines between September 16, 1931, and September 14, 1932. Total loans and discounts have been reduced 25.5 percent with those secured by stocks and bonds declining 18 percent and "all other" loans 2.8.4 percent in the fifty-two weeks. Investments in other than United States Government securities have declined 19.5 percent with total investment holdings 6.3 percent smaller. Net demand deposits as of September 14 were 17.3 percent and time deposits IO percent smaller than one year earlier. In the five weeks ended September 14, these banks have reduced their loans and discounts 2.8 percent and their total investments o.6 percent, whereas, their net demand deposits have increased 0.3 percent and their time deposits 1 percent. OF OcTOBER KANSAS CI TY No. r, 1932 BUSINESS I IO THE TENTH FEDERAL RESERVE DISTRICT j Percentages of Increase, or Decrease(-), for August 1932 over July 1932 and August 1931 and for the first eight months of 1932 over the like period in 1931. August 1932 Compared to Banking July 1932 Aug. 1931 Payments by check, 29 cities .................. - I I . I -29.2 Federal Reserve Bank clearings·-··········· - 1.9 -'25-7 23•4 42.6 Business failures, number.... - - - Business failures, liabilities _ ___ 23·9 164.3 Loans, 54 member banks·---··················· - 2.8 -'25-5 Inve3tments, 54 member banks .............. - o.6 - 6.3 Net demand deposits, 54 member banks 0.3 - 17.3 -10.0 1.0 Time deposits, 54 member banks·--······· -10.5 Savings deposits, 47 selected banks·--··· 0.3 Savings accounts, 47 selected banks ...... - 0.5 - 3.2 8 Months 1932 Compared to 8 Months 1931 -'l.8.5 -26.5 18.8 74.8 Distribution Wholesalers' sales, 5 lines combined ..... . Retailers' sales, 34 department stores... . Lumber sales, 162 retail yards ................ Life insurance, written·-··-······················· 19.6 20.5 20.6 0.5 - 17.3 -'l.4.0 -'28.7 -20.0 Construction Building contracts awarded, value·---··· Residential contracts awarded, value .... Building permits in 17 cities, value·-····· -42 .7 - 8.6 110.9 -43.5 _,..,6.o --64.5 6.o 4.0 34.2 2 7•9 6.8 - 5.4 - 8.1 20.0 -26.8 -5 1.3 --68.2 -'28.8 -18.9 -40.2 -51.6 155.8 85.2 513.6 -'21.7 11.2 -49.8 -38.2 Production Flour·--······················································· Crude petroleum·--·------Soft coa~---·········•························ Zinc ore (shipped) Tristate District ...... Lead ore (shipped) Tristate District..__ Cemen.___ _ _ _ _ _ _ _ __ Grain receipts, 5 markets Wheat..._····----············ ................ Corn .................................. _ _ __ 0ats·---·· ·· · · · · · - - - - - - - - - Rye.......................................... _ _ _ _ .. Barley·-······················································· Kafir........................................................... . - -'l.4.7 -'23-9 -38.2 -20.6 - 2.4 -14.0 -'l.2.5 -46.6 -35.6 -73-4 29.2 7o4.4 171.9 -22.8 -30.6 -36.9 19.8 - 6.4 -10.6 - -53.9 Livestock receipts, 6 markets Cattle ............... _ _ _ __ Calves----······································ Hogs ..................·----····················· Sheep ................_ _ _ _ _ __ Horses and mules ..................................... . 3.6 -10.4 19.8 -16.7 -'21.2 7.9 - 4.6 -12.4 Meat packing, 6 markets Cattle ......................................................... . Calves·-······················································· Hogs........................................................... . Sheep .......................................................... -l4.9 - o.8 44.6 -16.9 -7.0 - 7.6 18.7 - 6.o 26.5 -17.4 - 5.5 -46.2 -47.o Stocker and feeder shipments, 4 markets Cattle.......................................................... 1 ~: ;~~:::::::::::·· - - - - - - - - Sheep.......................................................... 1 5°·3 ;::: 138.5 This Copy Released For Publication In Afternoon Newspapers, September 28 21.8 --66.7 -58.5 2 THE MONTHLY REVIEW Changes in the principal items are reflected by the combined condition statements of the fifty-four banks as of the dates of comparison: REPORTING MEMBER BANKS Sept. 14, 1932 Aug. 10, 1932 Sept. 16, 1931 Loans and investments-total... $518,560,000 $5 2 7,543,000 $624,5r4,ooo Loans and discounts-total..._ ... 266,058,000 258,682,000 347, 232,000 Secured by stocks and bonds 79,222,000 78,178,000 96,596,000 All other loans and discounts l 87,880,000 250,636,000 179,460,000 In vestments-total..._ ................ . 277,282,000 261,485,000 259,878,000 U. S. securities ....................... . 141,918,000 141,584,000 130,330,000 Other bonds, stks, and sec .... . I I 8,29-f,OOO 146,952,000 II9,567,ooo Reserve with F. R. bank............ 48,699,000 45,319,000 44,653,000 Net demand deposits ............. ..... 426,181,000 351,667,000 352,654,ooo Time deposits .............................. 180,105,000 200,009,000 178,391,000 Government deposits................. . 2,899,000 9,438,000 4,499,ooo Federal Reserve Bank Operations Member banks continued to reduce their indebtedness to the Federal Reserve Bank of Kansas City and branches during the five weeks ended September 14, the reduction for the period amounting to I 1.4 percent. Total holdrngs of bills rediscounted on September 14 this year were, however, $6,782,544 in excess of amounts held as of September 16, 1931. This bank's holdings of United States securities remained unchanged during the five weeks at $57,267,100, which amount as of September 14 was $18,152,500 greater than that reported September 16, 1931. Federal reserve note circulation declined and member banks' reserve deposits increased I percent between August 10 and September 14, but the former increased 37.3 percent and the latter declined 1 I. 5 percent in fifty-two weeks. Principal resource and liability items contained in the weekly condition statements of this bank and branches as of the three dates of comparison: FEDERAL RESERVE BANK Sept. 14, 1932 Aug. 10, 1932 Sept. 16, 1931 Gold reserves·-···········---- 'f, 85,897,422 'f, 83,766,574 'f, 90,467,868 Reserves other than gold·- -······· 4,620,465 5,ou,038 7,794,939 Total reserves.............................. 90,517,887 88,777,612 98,262,807 Bills discounted·--· · - - - 18,814,188 21,224,580 12,031,644 Bills purchased............................ 894,186 945,758 5,619,206 U. S. securities............................ 57,267,100 57,267,100 39,II4,600 Total bills and securities............ 76,975,474 79,437,438 56,765,450 Total resources ...... _ _ _ _ 196,768,630 193,033,575 191,351,738 F. R. notes in circulation.......... 94,228,015 95,183,215 68,617,690 Member banks' reserve deposits 67,647,190 67,006,653 76,454,542 The discount rate of the Federal Reserve Bank of Kansas City, on all classes of paper and all maturities, remained unchanged at 3½ percent. Savings in Banks Deposits to savings accounts in forty-seven selected banks in leading cities of the District increased 0.3 percent during August despite a reduction of 0.5 percent in the number of depositors. Reports as of September I this year as compared to September 1, 1931, reflect declines of 10.5 percent in savings deposits and 3.2 percent in the number of savings accounts. Savings deposits and savings accounts as reported by the forty-seven banks: September 1, 1932.................................. August 1, 1932 .................. ,..................... September 1, 1931.................................. Savings Accounts 404,650 406,621 418,094 Savings Deposits '/,II4,536,182 l 14,169,832 127,994,614 Federal Reserve Bank Check Collections A slight increase in the number of checks collected through this bank and branches at Omaha, Denver, and Oklahoma City, and a slight decrease in the dollar amount for the month of August as compared to July, were recorded. Collections in August as compared to August a year ago declined 25.2 percent in number and 25.7 percent in amount. The check collection figures for August and the first eight months this year, with comparisons, are shown in the following: August ............. . July................... . Eight months .. . ITEMS 1931 1932 5,069,163 3,794,o63 5,510,202 3,742,110 35,387,9 15 43,617,256 AMOUNT 1931 1932 'f, 682,896,000 'f, 507,698,000 517,659,ooo 744,99 1,000 5,788,490,000 4, 257,4 27,000 Bank Debits Debits to individual accounts reported by banks in twentynine cities in the Tenth District for the four weeks ended August 31 declined II.I percent as compared to the preceding four weeks ended August 3 and 29.2 percent as compared to the corresponding four weeks a year ago. Cumulative figures for the first thirty-five weeks this year as compared to the like period last year show a reduction of 28.5 percent. PAYMENTS BY CHECK FouR WEEKS ENDED Sept. 2, 1931 Aug. 31, 1932 6,067,000 'f, Albuquerque, N. M ...·-··············· 9, 237,000 2,176,000 3,170,000 Atchison, Kans ...·-······················· 14,646,000 15,872,000 Bartlesville, Okla.·-····················· 5,200,000 3,150,000 Casper, Wyo.·--··························· Cheyenne, Wyo ........................... 5,508,000 4,340,000 Colorado Springs, Colo ............... 8,481,000 12,987,000 Denver, Colo .............................. 127,141,000 90,194,000 Enid, Okla ................................... 10,644,000 6,885,000 1,728,000 2,770,000 Fremont, Nebr.·-························· 1,481,000 2,390,000 Grand Junction, Colo ................. Guthrie, Okla .. ....................... .... 1,015,000 1,634,000 16,184,000 Hutchinson, Kans ....................... 9,947,000 Independence, Kans ... ................ 4,322,000 2,053,000 Joplin, Mo ....... ............................ 4,243,000 5,939,ooo 8,226,000 Kansas City, Kans ..................... 12,369,000 278,793,ooo Kansas City, Mo ......................... 201,441,000 Lawrence, Kans ........................... 2,225,000 3,076,000 2 5,395,000 15,939,000 Lincoln, Nebr ..- ........................... Muskogee, Okla ........................... 6,063,000 4,322,000 Oklahoma City, Okla ... .............. 51,130,000 64,865,000 Okmulgee, Okla ........................... 1,885,000 2,387,000 Omaha, Nebr ............................... l 53,580,000 97,996,ooo Pittsburg, Kans ........................... 2,290,000 3,621,000 Pueblo, Colo.._............................. 9,801,000 15,551,000 Salina, Kans ................................. 8,3II,Q90 5,9n,ooo 18,780,000 29,878,000 St. Joseph, Mo.·--······················· 9,642,000 13,419,000 Topeka, Kans.·--························· 72,225,000 60,507,000 Tulsa, Okla.·-······························· Wichita, Kans ............................. 25,402,000 38,969,000 s Total 29 Total 29 U. S. 263 U. S. 263 cities, cities, cities, cities, 4 35 4 35 weeks .......... '$ 673,129,000 $ 950,274,000 6,606,642,000 weeks.......... 9,240,398,000 2 weeks .......... 23,291,461,000 3 ,953, 299,000 weeks .......... 242,792,239,000 366,345,958,000 Percent Change -34.3 -31.4 8.4 -39.4 -21.2 -34-7 -29. 1 -35.3 -37.6 -38.0 -37.9 -38.5 -5 2.5 -28.6 -33.5 -27.7 - 27.7 -37. 2 -28.7 -21.2 -21.0 -36.2 -36.8 -37.o -28.9 -37.i -28.1 -16.2 -34.8 -29.2 -28.5 - 29.3 -33.7 Business Failures R. G. Dun and Company reported 174 business failures in this District during August. This is the largest number of insolvencies shmvn for any month on records covering the past thirteen years. The amount of liabilities involved has been exceeded several times in the past, but was the largest reported since January, 164.3 percent larger than a year ago, and the largest for any August of record. Defaults for the country as a whole showed little change from recent months, and liabilities, exclusive of the June total, were the smallest for any month this year. Commercial failures m this District as reported by R. G. Dun and Company: UNITED STATES TENTH DISTRICT Liabilities Number Liabilities Number 2,796 '/, 77,031,212 174 1, 4,50S,317 August 1932 ..·-························· July 1932 .......................... ...... . 2,596 87,189,639 I4I 3,639,171 122 1,706,046 1,944 53,025,132 August 193 L--················· ··· ····· Ejght months 1932........ ......... . 701,505,139 1,136 29,135,335 22,825 Eight months 1931.................. 956 16,666,243 19,034 484,5 20,354 3 THE MONTHLY REVIEW RETAIL TRADE AT 34 DEPARTMENT STORES IN THE TENTH FEDERAL RESERVE DISTRICT COLLECTIONS SALES STOCKS (RETAIL) ACCOUNTS RECEIVABLE Stores August 1932 August 1932 8 Months 1932 August 31, 1932 STOCK TURNOVER August 31, 1932 compared to Report- compared to compared to compared to August 8 Months compared to ing August 1931 8 Months 1931 July 31,1932 Aug.31,1931 1932 1931 1932 1931 July31,1932 Aug.31,1931 July 1932 Aug. 1931 Kansas City........ 4 -28.2 -z5.7 -z5.9 -z7.6 0.3 -'2.I.6 .15 .17 I.25 I.56 I.0 - 6.I Denver._............... 5 -IO.I -17.8 -z6.5 -20.6 - 1.6 -25.6 .24 .25 1.74 1.87 - 0.4 -14.2 Oklahoma City.... 3 -'2.I.2 -24.5 -17.1 -25.2 4.7 -31.6 .24 .20 1.77 1.88 - 2.9 - 8.3 -17 2 -z6.o -'2.2.1 ---21.8 - 5.1 -'2.I.0 .20 .18 1.58 I.5'2 - 2.9 -21.4 Topeka·--·-··········· 3 Tulsa .................... 3 -15.3 -17.6 0.5 -31.1 .26 .22 2.75 2.50 - I.0 -19.8 Other cities .......... 16 -'2.4.0 -25.1 6.9 -27.2 .23 .23 1.69 1.83 - 1.6 -14.6 -16.8 TotaL .. - ............... 34 -z4.o -z3.9 1.5 -z5.6 .20 .20 1.60 1.78 - I.I -14.0 Collections same month last year 32.5. NOTE: Percentage of collections in August on accounts July 31, all stores reporting 29.5. Trade WHOLESALE: A summary of the reports of five representative wholesale lines reveals the August volume of sales, measured in dollars, of all lines exceeded the July totals but were somewhat smaller than a year ago. The increase in sales of hardware were contrary to usual expectations. Sales of dry goods and furniture were substantially larger than normally occur, and groceries and drugs were slightly in excess of moderate seasonal tendencies. Inventory adjustments in August displayed no radical departure from the usual tendencies at this season, although stocks of dry goods and hardware increased slightly, whereas, they normally decline and wholesalers of groceries did not enlarge their inventories quite as much as usual. All lines reported their stocks on August 31 as smaller than on the corresponding date last year, decreases ranging from 10-4 percent for hardware to 33.4 percent for furniture. Collections ran about the same as in July but were slow and somewhat smaller than in August, 1931. RETAIL: Sales of merchandise at thirty-four department stores in Tenth District cities increased, as usual, in August, the increase this year amounting to 20.5 percent as compared to 12.7 percent a year ago, and a :five-year average increase of 19 percent. Dollar sales as compared to August last yer..r declined 24 percent and, although the smallest decline reported for any month since March, there was one less business day in August this year than in August, 1931. A tendency among merchants not to stock up as heavily at present as in other years is indicated by the month-end inventory reports which disclose that stocks were increased only 1.5 percent during August as comparerl to an average increase in recent years of 9.8 percent. Stocks as of August 31 this year were 25.6 percent smaller than on the like date a year ago. Collections declined in August with the total amount being equal to but 29.5 percent of amounts outstanding on July 31. This rate compares with 31.6 percent reported for July this year and 32.5 percent for August, 1931. Building Building operations in this District continue in about 20 percent of the normal volume. The value of permits issued in seventeen reporting cities was equal to but 21 percent of the ten-year average, and the total value of contracts awarded in the entire District, as reported by the F. W. Dodge Corporation, Reporting Stores Dry goods ·--················· 6 Groceries .... _ _ _ _ 5 Hardware·--·················· 9 Furniture........................ 5 Drugs.............................. 6 was equal to but 21 percent of the five-year average. Residential construction was extremely quiet in August, being less than I 5 percent of normal and off 76 percent as compared to a year ago. BUILDING PERMITS IN TENTH DISTRICT CITIES PERMITS ESTIMATED CosT 1931 1932 1931 1932 1, 52 ,9°9 46 Alb uquerque, N. M.·-················· $ 12 5.499 54 28 Colorado Springs, Colo,.--········· 24 I4,835 3,845 267,535 Denver, Colo ............................... 3 29 766,200 436 28 14,7°5 Hutchinson, Kans ........... ·-··-······· 30 7,575 12 18 Joplin, Mo ................................... 113,250 4,700 22 Kansas City, Kans ..................... 43,180 I 5,215 70 106 195 Kansas City, Mo ......................... 103,500 575,200 70 566,315 28.757 44 Lincoln, Nebr.·-··························· 68 Oklahoma City, Okla ................. 1,030,866 128,965 151 Omaha, Nebr ............................... 86 142,945 291,090 71 Pueblo, Colo ................................. 6,867 3 2,435 73 35 12 Salina, Kans ................................. 16 20,020 2,675 6 Shawnee, Okla ............................. 5,000 4 57° St. Joseph, Mo ............................. 41 23 4,338 5°, 255 40 23,015 169,233 Topeka, Kans.·---······················· 35 66 Tulsa, Okla ............................... -... 444,863 34,7 27 73 Wichita, Kans ............................. 104 771,739 524,552 73 Total 17 cities, AugusL--········· 1,005 Eight months·---··········--············· 7,607 1,484 12,401 f,1,672,467 9,589,051 f, 4,714,908 36,724,463 Both residential and total building contracts awarded in the United States showed a slight increase for August as compared to July, whereas, substantial decreases were recorded for this District. Total building contracts awarded in this District and the United States as reported by the F. W. Dodge Corporation: Augus t ............. . July........... ·--·-··· Eight months ... TENTH DISTRICT 1932 1931 f, 4,696,910 $ 8,312,198 8,195,303 12,060,054 43,103,295 I 10,825,622 UNITED STATES 1932 1931 $133,988,100 1, 233,106,100 1'28,768,700 285,997,300 929,836,500 2,327,330,200 Lu1nber Retail lumber sales, as indicated by reports from 162. retail y ards distributed over this District, increased 20.6 percent in August as compared to July, but were 28.7 percent less than for August, 1931. Dollar sales of all materials were also larger for the month but considerably under a year ago. Inventories of lumber as of August 31 showed a slight reduction for the month and were 18.2 percent lighter than one year earlier. The ratio of collections during August on amounts outstanding on July 31 of 19.2 percent, showed little change from recent months but reflected a substantial decline as compared WHOLESALE TRADE IN THE TENTH FEDERAL RESERVE DISTRICT OuTSTANDINGS COLLECTIONS SALES Aug. 1932 'compared to Aug. 1932 compared to Aug. 31, 1932 compared to July 31, 1932 Aug. 31, 1931 July 1932 Aug. 1931 July 1932 Aug. 1931 10.4 -17.8 1.7 -16.5 75-2 -15.7 6.2 -18.0 8.9 - 9.6 2.9 - 9.4 - 0.I - I0.2 -10.6 -z7.9 3.4 -w.6 ---'2.6.o 10.5 -41.6 68.3 -'2.8.9 3.5 0.3 - 12.4 8.9 -12.5 0.7 - 9.4 STOCKS Aug. 31, 1932 compared to July 31, 1932 Aug. 31, 1931 0.3 - 1 7.4 1.0 -24.5 - 3.6 -10.4 - 5.6 -33-4 - 1.4 -18.5 THE MONTHLY REVIEW 4 to last August when collections were equivalent to 27.2 percent of amounts receivable. The retail lumber trade in percentages of increase or decrease as indicated by the reports of 162 retail yards: August 1932 Compared to July 1932 August 1931 Sales of lumber, board feet............................. 20.6 -28.7 Sales of all materials, dollars...... _ _ _ _ 13.9 -37.4 Stocks of lumber, board fee._______ - 3.9 -18.2 Outstandings, end of month'----o.6 -25.1 Lumber production in the United States, as reported by the National Lumber Manufacturers Association, continues at 22 percent of normal, with both hardwoods and softwoods reporting approximately identical rates. Production for the first thirty-five weeks this year was but 53 percent, shipments 62 percent, and net orders received 63 percent of the volume reported for the first thirty-five weeks of 1931. Cement Production of finished Portland cement at mills in this District declined 5.4 percent in August but exceeded shipments which increased about one-third as compared to July. Stocks were slightly heavier at the close of August than one month earlier, being larger than at any time since March 31, but were 3 percent lighter than reported on August 31, a year ago. Production, shipments, and stocks of finished Portland cement at mills in the Tenth District as reported by the United States Bureau of Mines: Produced.................................. Shippeu._____ Stocks, end of month.............. Aug. 1932 Barrels 851,000 802,000 2,013,000 July 1932 Barrels 900,000 610,000 1,964,000 Aug. 1931 Barrels 1,196,000 1,353,000 2,075,000 Production in the United States during August was reported by the Bureau of Mines at 7,835,000 barrels, shipments 10,968,000 barrels, and month-end stocks 19,379,000 barrels, representing decreases as compared to a year ago of 42.2, 27.7, and 20.3 percent, respectively. Flour Production Flour mills in this District, as indicated by the weekly reports of the southwestern mills to the Northwestern Miller, operated at 61.3 percent of full-time capacity in August, as against 6o.5 percent in July, and 68.4 percent in August, 1931. The August rate was the lowest reported for that month since 1925. For the past two years August production has failed to show the normal increase over that for July, the increase this year being estimated at 6 percent, last year at 0.1 percent, and the · average for the five preceding years at IO percent. Compared to August, 1931, output declined 8.1 percent. Flour production as estimated from the weekly reports of southwestern mills to the Northwestern Miller: extremely dull. Prices fluctuated with wheat quotations closing practically unchanged for the month. Millfeed demand was fair to good and prices somewhat higher, bran closing with a net gain of 75 cents and shorts '1,1 per ton for the month. Grain Marketing Arrivals of wheat during August at the five leading grain markets of this District displayed the customary tendency as compared to July, declining 51.6 percent. Reflecting the light harvest and a desire on the part of producers to hold for better prices, August marketings were only one-half as heavy as a year ago, the lightest for any August since 1925 and equal to but 61.6 percent of the ten-year average volume for that month. There was a sharp increase in the movement of corn to market, August receipts being over two and one-half times those for July. Total arrivals were, however, comparatively small, equal to but 44.4 percent of the ten-year average and being 35.6 percent smaller than a year ago. Oats, rye, barley, and kafir also arrived in comparatively light quantities although receipts of oats, rye, and kafir were somewhat larger than in either the preceding month this year or the corresponding month last year. August receipts of grain at the five markets with comparisons: Wheat Bushels Hutchinson .. 4,225,500 Kansas City 8,457,600 Omaha ......... . 2,568,000 St. J osepL-. 2,448,000 Wichita·--····· 2,277,000 Corn Bushels Oats Bushels Rye Bushels 784,500 695,800 252,000 134,000 688,ooo 280,000 1,500 18,000 18,200 August 1932. 19,976,100 1,737,500 1,103,500 July 1932...... 41,289,850 679,200 596,000 August 1931. 39,774,400 2,697,400 854,000 36,200 5,200 5,900 4,500 Barley Bushels 3,750 68,800 6,400 Kafir Bushels 28,600 77,000 1,300 2,600 80,250 102,550 174,150 10S-,200 97,300 39,800 PRICES: With demand confined chiefly to millers and mixed feed manufacturers, all grain prices move<l narrowly during August. No. 2 mixed corn and No. 2 white oats closed the month nominally unchanged, and No. I hard and dark wheat advanced but I½ cents per bushel. Rye, barley, and kafir showed small net gains for the month. Compared to closing prices in August a year ago, wheat was 8 cents higher with premiums narrower, but corn and oats were off I 1 and 8 cents per bushel, respectively. Prices of all grains registered losses for the first two weeks of September. Crops Atchiso,.._ _ _ _ _ _ _ _ _ __ Kansas City _ _ _ _ _ _ _ __ Omaha .......................... _ _ __ Salina ....·------····················· St. Joseph·---··· - - - -·················· Wichit....___ __ Outsid.,___ _ _ _ _ _ _ _ _ __ Aug. 1932 Barrels 124,078 641,901 96,450 183,312 28,067 181,548 738,033 July 1932 Barrels 109,974 67,845 155,915 86,258 195,261 691,302 Aug. 1931 Barrels 121,022 635,4 15 100,331 180,505 90,244 126,006 9 14,45 1 TotaL_············-------- 1,993,389 1,880,109 2,167,974 With the present crop season drawing to a close, the year's ultimate yields become more definitely established. Government estimates place this year's production of corn, barley, and sweet potatoes as above, and that of winter wheat, cotton, broomcorn, apples, and peaches as below that of last year or the five-year average, both for this District and the United States. Spring wheat and tame and wild hay production exceeds last year's short crop but is below average. Oats yields will approximate those of last year and the average. The Tenth District potato crop is larger than a year ago or the five-year average, but that for the country at large, although larger than a year ago, is below average. Commenting on crop prospects the forepart of September, the state crop reporting boards said in part as follows: Flour trade was erratic during August, purchasers responding favorably to reactions in wheat prices and withdrawing on extreme advances. A few large orders were placed on price recessions, but a majority of bookings were of a "hand to mouth" character. Shipping directions were slow. Export trade was COLORADO: "Colorado crop prospects continued to decline during August and on September 1 were the poorest on record. The low condition of Colorado crops is the result largely of hot, dry weather in eastern Colorado; severe shortage of irrigation water in northern Colorado and the Arkansas valley; and the unusual insect infestation this season. Rainfall has been below normal in eastern Colorado since May, 1931. Crop yields last year were the lowest 573,554 5 THE MONTHLY REVIEW ever recorded, but with growing conditions even more unfavorable this year, crop production for 1932 will be even less than a year ago. Abandonment of crop acreage will be unusually heavy this season. KANSAS: "The corn production outlook in the western third of the state is the lowest since 1926 despite the large acreage planted. Many fields m this area will produce only fodder. Production in the eastern third of the state will be the largest since 1928. The crop is very good in most northeastern counties and a few northcentral border counties. Production in the central third of the state will be somewhat below average but higher than last year. Plowing and seed bed preparation for wheat in the western third of the state progressed with difficulty during August." MISSOURI: "Farm crops in Missouri are showing spotted yields in 1932, caused entirely by spotted rainfall throughout the summer and periods of high temperatures. However, corn yields will be about the same on the average as last year, but oats and hay crops generally are showing lower yields than in 1931. Favorable weather conditions in the northern half of Missouri have allowed normal procedure in soil preparations for wheat seeding, but in the southern districts the ground is still dry and hard and very little acreage has been plowed for the fall seeding of grains." NEBRASKA: "Most of the corn recovered from the drouth much better than expected. The eastern third of the state, with few exceptions, has a very good corn crop. The central third is spotted, but the yields will be up to the average. Corn is very spotted in the western third of the state, with considerable injury especially in southwestern Nebraska. Potatoes were considerably injured in southwestern Nebraska and in the commercial section in western Nebraska. Alfalfa produced three fairly good crops except in the limited drouth area. Wild hay is good." NEW MEXICO: "Recent rains a great benefit to crops and ranges. Irrigated crops excellent and dry farm crops good except locally in the northeast. Excellent harvest weather. Local frosts in northeastern mountain regions but little damage." . OKLAHOMA: "Rainfall during August was below normal except in parts of the central and northcentral areas, where mid-month rains were excessive. In the eastern, southeastern and southwestern sections, rainfall was subnormal, and temperatures were extremely high. In these areas crops deteriorated rapidly during the month. The condition of corn, cotton, hay, and pastures declined materially from lack of rainfall and high temperatures. Chinch bugs are numerous and have greatly damaged corn, broomcorn, and grain sorghums." WYOMING: "Wyoming crop conditions continued the decline begun in July and by September 1, most crops were in a poor condition except those which are grown largely on irrigated land. The reduction in crop conditions is due chiefly to dry ,onditions during July and August and to an early infestation of insects which badly damaged crops in some localities. Ample irrigation water has generally brought the irrigated crops along in fine shape although in a few localities, crop conditions were lowered by a water shortage or by damage from insects. The combined average yield per acre of all crops is now expected to be 12.8 percent below the ten-year average yield, but the yields this year are slightly above the yields a year ago which were the lowest on record. With low yields on reduced acreage, there is this year an unusual small production of spring wheat, sugar beets, and beans. On the other hand the increased acreage of feed grains and hay crops has offset the low yields and the production oflivestock feeds is much larger than a year ago but slightly below the average production." CORN: Kansas excepted, all states in the District will have an above average corn crop this year, with Nebraska reporting one of the largest crops in recent years as contrasted to the exceptionally poor yields of last year. Colorado and New Mexico report declines as compared to 1931. Indications now are that Tenth District production will be the largest since 1927 when 612,497,000 bushels were harvested. Production figures for this District and the United States as estimated by the United States Department of Agriculture on the basis of September conditions: Colorado.--······· Kansas .............. Missouri .. ·····-··· Nebraska .......... New Mexico... -. Oklahoma·--····· Wyoming.......... September I 1932 18,258,000 I 27,505,000 I 89,240,000 271,I'.25,000 4,043,000 66,420,000 2,926,000 August I 1932 20,406,000 131,148,000 182,932,000 249,435,000 4,665,000 69,741,000 3,458,000 Seven states·-··· Tenth District.. United States... 679,517,000 524,917,000 2,854,307,000 661,785,000 5u,729,ooo 2,819,794,000 Final Five-Year Av. 1924-28 1931 19,278,000 17,658,000 I 13,838,000 140,024,000 170,060,000 180,603,000 170,714,000 213,537,000 5,660,000 3, 159,000 51,808,000 53,362,000 1,953,000 2,861,000 533,311,000 393,884,000 2,563,271,000 611,204,000 463,428,000 2,625,063,000 WHEAT: With the most extended and unsatisfactory wheat harvest in years completed, seeding of winter wheat for next year's crop has commenced. Based on August I intentions, farmers in the United States plan to reduce their acreage 0.9 percent to 39,805,000 acres as compared to a year ago, 9 percent as compared to 1930, and 8 percent as compared to the five-year average seedings. Kansas producers expressed the intention of seeding II,594,000 acres this year as against II,7II,ooo acres last year and a five-year average acreage of I 2,153,000 acres. Final seedings will depend largely on the amount of rainfall received in the wheat belt in the near future. Extremely dry weather, heavy weed growth, and the unwillingness or inability of producers to adequately finance operations, have resulted in many fields not being properly prepared for seeding, with conditions reported as subnormal for this season. COTTON: Cotton picking is two to three weeks earlier this year than usual and had commenced in Missouri by September I. Boll weevil infestation has been more extensive and severe this year than last. Oklahoma cotton declined IO points in condition during August to 60 percent of normal as against a ten-year average PRODUCTION OF 18 CROPS IN THE UNITED STATES AND THE SEVEN STATES, WHOSE AREAS OR PARTS THEREOF COMPRISE THE TENTH DISTRICT, AS ESTIMATED BY THE UNITED STATES DEPT. OF AGRICULTURE ON THE BASIS OF SEPTEMBER I PROSPECTS. In thousands of units (ooo omitted). SEVEN STATES UNITED STATES Sept. I Aug. I Final 5-Year Sept. I Aug. I Sept. 1 5-Year 1932 1932 Average 1931 Average 1932 1932 1931 *Winter wheat, bu .. ·--··----176,963 176,963 280,079 4 24,437 441,788 441,788 789,462 548,632 Spring wheat, bu....................................... ... 6,914 7,278 10,334 4,3 23 280,899 272,750 280,044 104,742 All wheat, bu .................• - - - - 183,877 184,241 428,760 290,413 722,687 828.676 894,204 7 14,538 Corn, bu......................................................... 679,517 661,785 6u,204 2,8 19,794 533,311 2,854,307 2,563,271 2,625,063 Oats, bu........................................................ 174,534 170,888 190,450 1, 214,733 163,827 1,244,781 1,112,037 1,277,127 3,769 *Rye, bu .............. ·-----······················· 3,769 4,132 4, 2 33 44,081 4 2,453 4 2,453 32 ,5 1 4 Barley, bu....................................................... 42,846 44, 1 44 34,185 23,292 302,666 302,808 218,868 198,185 45,680 46,826 Grain sorghums, bu ...·-································· 46,51 I 117,600 124,927 104,529 98,129 8,206 Sugar beets, tons·---····································· 3,109 3,76'.2 7,389 7,9°3 41,080 35,8oo 34,700 **Broomcorn, tons'-----··················· 30,500 37,100 42,900 44,600 51,160 10,455 Tame hay, tons-----························ 11,029 9,748 I'.2,59 2 68,587 64,213 67,39o 73,759 4, 134 3, 267 Wild hay, ton"-------······················· 4,152 4,407 11,414 I 1,444 12,000 8,125 White potatoes, bu ..... _____ 38,105 41,825 27,854 33,063 356,746 367,399 361,115 375,5 18 Sweet potatoes, bu....................................... 3,658 3,691 2,800 2,865 76,232 76,050 6'.2,9o4 57,822 Dry beans, bags ...... _ _ _ _ _ _ _ _ 1,385 1,507 2,011 9,645 I'.2,7 13 9,9°7 Apples, bu,___________ 5,513 10,680 5M6 11,3o6 138,461 180,262 136,496 202,415 Peach~, bu.·-·· - - - - - - 1,708 2,877 1,759 3..471 46,1'.26 46,438 76,586 56,821 Pears, bu.,____________ 639 681 1,426 1,162 22,174 22,149 23,346 21,484 21,871 21,6o8 16,745 ••Grapes, ton." -------··················· 23,044 2,101,195 2,338,907 2,093,072 1,621,837 *Winter wheat and rye estimates based as of August I. •• ooo not omitted. 6 THE MONTHLY REVIEW decline for that month of 16 percent to 52. percent. Abandonment was estimated at 3 percent of the planted acreage as compared to an average abandonment of 5 percent. The acreage of cotton remaining for harvest in the United States is estimated at 36,6II,ooo acres compared with 40,693,000 acres harvested last year, with production forecast at II ,310,000 hales or 5,786,000 bales less than a year ago and 3,348,000 bales less than the five-year average production. The estimated acreage and procluction of cotton in the United States and three cotton producing states of this District: Oklahoma·--····· Missouri ........... . New Mexico..... . AcitEAGE Remaining for Harvest Sept. 1, 1932 2,960,000 344,000 n3,ooo Three states._... United States... 3,417,000 36,6n,ooo PRODUCTION (500 lb. Bales) Area Picked 1931 348,000 l 17,000 Indicated Sept. 1, 1932 928,000 187,000 91,000 Final 1931 1,261,000 289,000 101,000 3,860,000 40,693,000 1,206,000 n,310,000 1,651 ,000 17,096,000 3,395,000 MISCELLANEOUS CROPS: Aside from sharp declines in the condition of dry beans in Colorado, broomcorn and sweet potatoes in Oklahoma, and white potatoes in Nebraska and Colorado, there was little change between August 1 and September l in the condition of other field and orchard crops. Lack of rainfall and hot weather were responsible for crop deteriorations. Harvesting of a sugar beet crop somewhat smaller than a year ago or the five-year average will commence ahout October 1. Livestock MARKETINGS: All classes of livestock arrived at the six principal market centers of the Tenth District in substantially larger numbers during August than in the preceding month, but as compared to August a year ago hogs were the only specie of which marketings were heavier. Marketings of cattle, due to the seasonal movement of grass cattle to market, were, as usual, the largest for any month so far this year and, last August excepted, the largest for any August since 1927 although 13 percent short of the ten-year average August movement. Calf numbers were also the largest of the year but were the smallest for any August in over thirteen years, being equal to but two-thirds of the average volume. Contrary to seasonal trends, receipts of hogs during August, including those shipped direct to packers' yards, exceeded July receipts and, although 19.8 percent larger than a year ago, were but slightly in excess of the normal August offerings. Arrivals of sheep and lambs, although 16.7 percent smaller than the heavy movement of last August when supplies were the heaviest for any August since 1919, exceeded the ten-year average by 9 percent and displayed about the normal seasonal increase over the July movement. Offerings of horses and mules increased seasonally but animals were in light supply, receipts being equal to but 37. 5 percent of normal for the season and 21.2 percent under a year ago. Kansas City ......... ..................... Omaha ........................................ St. Joseph ........................... ... Denver............................ ............ Oklahoma Citv ......................... Wichi~" .......... ·........................... Cattle 194, 2 59 121,517 34,200 24,784 21,788 26,075 STOCKER AND FEEDER SHIPMENTS: A sharp seasonal increase in the outgo of all classes of stocker and feeder livestock from four Tenth District markets was recorded for August. The countrywarcl movement of cattle was the largest for any month since last November and for any Allgust since 1928, but the total was, however, 9 percent short of the ten-year average August out-bound movement. The movement of calves was extremely heavy, being the largest for any AGgust in over thirteen years and exceeding the ten-year average outgo by 55 percent. Considerably fe\ver hogs and sheep were returned to the country than a year ago or normally. RANGES AND LIVESTOCK: Speaking generally, the Division of Crop and Livestock Estimates, United States Department of Agriculture, reported livestock on western ranges in good condition with feed good and hay supplies ample. In Colorado and Wyoming the condition of ranges, due to hot, dry weather, declined somewhat in August, particularly in the eastern part, and on September 1 range conditions were reported as S'..lb-normal. Cattle and sheep on Wyoming ranges are in better condition than a year ago, whereas, in Colorado the condition of cattle is rated as 3 points below that of a year ago with that of sheep as 2 points higher than a month ago, I point higher than a year ago, and 6 points below average. According to the report, fall shipments of cattle are expected to carry a higher proportion of calves and young steers than last fall, with the volume of shipments depending on finances and forced sales as there will be little voluntary liquidation at prevailing prices, with a strong tendency to hold cows and heifers. Government estimates place probable marketings of cattle from seventeen western states from August to December, inclusive, as 3 percent larger this year than last. Shipments of lambs wiil carry a much smaller proportion of feeder lambs this fall than last. Prices continue to prohibit the sale of old ewes and large numbers will probably be held. l.amb contracting has been limited, being confined mostly to Wyoming, :rnd feeding operations will be reduced as compared to last year. The bulk of lambs being sold will be fed in western Nebraska, northern Colorado, and the irrigated sections of Wyoming. Mos t contracts rr.ade call for Septemher and early October delivery at $4 per hundredweight. Wool prices have advanced rapidly with recent quotations almost double earlier offers. PRICES: H og values declined approximately 35 cents per hundredweight at Kansas City in August with the closing top of $+10, the lowest in two months, as compared to the year's high of is. Choice lambs were 25 to 50 cents lower but feeder lambs closed steady. Most killing cattle were 25 cents lower with stock cattle and calves steady to 50 cents higher. The top of $9.50 on strictly choice steers was the highest of the year, but the lowest for August since before the war as was the top for hogs at $4-75 and of lambs at '$6.2.5. AUGUST MOVEMENT OF LIVESTOCK IN THE TE1TTH STOC KERS AND FEEDERS RECEIPTS Calves Hogs Calves Hogs Cattle Sheep 2,041 107,831 85,664 33,187 *2 54,57o 9,853 8,212 236,831 2,485 253,015 796 3o,453 6,663 80,982 101,396 8,330 677 748 251,060 1,071 8,380 962 3,322 43,376 :25,o74 35,496 7,975 48,296 8,469 5, 233 August 1932 ......... ..................... 422,623 64,59 2 7 15,735 July 1932._ ................................ 296,860 624,480 41,230 67,029 597,236 August 1931 ············-················ 451,651 *Includes 144,703 hogs shipped direct to packers yards. 730,661 5° 1,473 876,989 132,827 53,o76 105,004 14,086 7,94o n,565 4,547 3,777 13,648 DISTRICT Sheep 16,894 83,094 9,021 15,8n 124,820 52,343 300,5 13 PURCHASED FOR SLAUGHTER Cattle Calves Hogs Sheep 82,646 15,090 *227,403 57,8 29 70,981 149,265 193,435 5,7 27 20,832 91,548 69,584 5,695 10,034 28,505 16,257 1,971 10,802 7,178 9,90 1 3 1,97 2 2,212 46, 174 9,834 7,474 179,4II 155,214 210,899 37,873 26,670 38,177 597,073 51 9,695 412,897 357,99 2 296,184 430,624 THE MONTHLY REVIEW Meat Packing Operations at Tenth District meat packing establishments, as measured by the numbers of livestock purchased by packers, expanded in August. Increases in the slaughter of cattle, calves, and sheep were seasonal and of hogs in line with the unusual increase in receipts over July. Fewer cattle and calves were killed during the month than in any August in over thirteen years, the slaughter of cattle being equal to but three-fourths, and of calves but 60 percent of normal. Butcherings of sheep and larr.bs, although 16.9 percent less than last August, exceeded the ten-year average August butcherings by IO percent. The slaughter of hogs was unusually heavy for August, being 44 percent larger than a year ago and about 25 percent above average. Cold Storage Holdings Reports of the Bureau of Agricultural Economics disclose that United States cold storage holdings of all commodities except lamb and mutton and cheese declined during August and, slightly larger holdings of lard and butter excepted, were lighter on September 1 than a year earlier. Inventories, without exception, show substanti al declines as compared to the five-year average of September I holdings, ranging from 12.7 percent for pork to 41.9 percent for beef and 55.9 percent for Jamb and mutton. Decreases in holdings of beef, pork, and miscellaneous meats during August were somewhat in excess of the usual volume and stocks of poultry and butter, which normally increase, were reduced somewhat. The seasonal out-movement of lard and in-movement of lamb and mutton were in comparatively normal volume and the in-movement of cheese, although larger than a year ago, was 22 percent below normal. Producers began drawing on storage stocks of eggs in August and with peak holdings this year the smallest in sixteen years, the out-movement, although slightly larger than last year, was under the five-year average. Cold storage holdings in the United States, as reported by the Bureau of Agricultural Economics, United States Department of Agriculture: *Sept. 1 1932 Beef, lbs ................................................. 24,570 Pork, lbs ................. . ............................ 578,483 Lamb and mutton, lbs....................... 1,068 Poultry, lbs .. -----------·-------- 30,236 **Turkeys, lbs ......................................... 4,287 Miscellaneous meats, lbs ..................... 45,9°7 Lard, lbs ............................................... 103,169 Eggs, cases ............................................ 5,955 Eggs, frozen (case equivalent) .......... 2,654 Butter, creamery, lbs ...·--··· ................ I07,43 1 Cheese, all varieties, lbs ..................... 79,836 *Subject to revision. **Included in Poultry. Sept. 1 Sept. 1 1931 5-Yr.Av. 42,266 39,05° 595,063 662,772 1,975 2,421 43,023 43,056 5,II8 3,356 5,985 66,334 69,99 2 51 ,57° 121,61 8 96,047 141,981 9,016 6,431 9,506 2,832 3,151 2,725 110,247 104,678 143,3 19 91,284 I02,0J3 76,3 27 (ooo omitted). Aug. 1 1932 26,719 643,052 1,012 31,471 7 than a year ago but were, with that exception, the smallest in numbers for any August in recent years. Although there were more rigs UJ? and wells drilling on August 31 than a year ago, the number was also small as compared to previous years. Estimated gross production of crude oil in the United States and this District during August with comparisons: Oklahoma·--···.. ·· .. ······.............................. Kansas ................................................. . Wyoming................................................ .. Colorado..·-····················· .. ······ ................. . New Mexico............................................. . *Aug. 1932 Barrels 12,488 ,ooo 2,918,000 1,066,000 86,ooo 1,000,000 July 1932 Barrels 13,075 ,ooo Aug. 1931 Barrels 9,163,000 2,855,000 2,759,000 1,253,000 Total, five states._.......................... ;.. ..... . Total, United States.---........................ . 17,558,000 66,123,000 18,287,000 66,310,000 124,000 1,330,000 14,629,000 68,418,000 Bituminous Coal With winter approaching, soft coal production in this District and the United States increased in August as usual. Output at mines in the six coal producing states of the District increased 34.2 percent as against 25.8 percent reported for the nation by the Bureau of Mines. Compared to August a year ago, tonnage for this District was 26.8 percent less and for the United States 26.4 percent less. Bituminous coal production in the United States and each of the six coal producing states of this District is shown in the following: Colorado.-.................................... . Kansas .......................................... Missouri ...................................... .. New Mexico................................. . Oklahoma...................................... Wyoming..................................... . *Aug. 1932 Tons 270,000 152,000 210,000 81,000 55, 000 279,000 *July 1932 Tons 175,000 129,000 193,000 63,000 45,000 175,000 Aug. 1931 Tons 425,000 158,000 219,000 99,000 161,000 368,000 Total, six states·--··-······ .. ··········· 1,047,000 780,000 1,430,000 Total, United States................... 22,46 5,000 17,857,000 30,534,000 *Estimated from the weekly reports of the United States Bureau of Mines. Zinc and Lead Responding to sharp advances in prices of both zinc ore and lead ore, shipments from mines in Missouri, Kansas, and Oklahoma increased 27.9 and 6.8 percent, respectively, during the five weeks' period ended September 3 as compared to the preceding five weeks ended August 30. Shipments of both classes of ore were substantially larger than production in each of the five weeks. Deliveries were, however, considerably below the levels of the corresponding five weeks last year, the movement of zinc ore showing a decline of 51.3 percent and lead ore of 68.2 percent. Shipments of zinc ore and lead ore from the Tri-state district during the five weeks ended September 3 with comparisons: Petroleum The flow of crude oil from wells in this District which declined 4 percent in August as compared to July, was 20 percent larger than a year ago when production was more closely restricted. Daily average production was the smallest for any month since last September and gross production the smallest for any month since February. United States production was slightly smaller in August than in either the preceding month this year or the corresponding month last year. Posted prices for mid-continent crude were unchanged, ranging from 76 cents per barrel for oils testing below 29 degrees gravity to i 1 per barrel for those testing 40 degrees and over. Very little field activity is indicated by the August summary of field operations. Completions were slightly more numerous 1,162,000 94,000 1,101,000 Oklahoma................................. . I(ansas ...................................... Missouri .................................. .. 5 Wks . ended Sept. 3, 1932 , 5 Wks. ended Aug. 30, 1932 Zrnc ORE Tons Value 7,947 $ 146,044 1,787 33,378 171 3,178 9,905 'f, 182,600 7,745 20,346 135,298 467,958 LEAD ORE Tons 697 260 85 1,042 976 3,273 Value $ 22,760 8,525 2,890 $ 34,175 26,021 5 Wks. ended Sept. 5, 1931 159,rno Lead ore prices advanced $3 per ton to $19, or $4 per ton above the year's low and '/:,1 per ton below the year's high, to close $4 per ton under a year ago. Lead ore scored three $2. 50 per ton advances to close at $37. 50 or $2. 50 per ton under the year's high of last January but $12. 50 per ton less than at the close of August last year. At the year's low time, lead ore was quoted at $25 per ton. The second week of September zinc ore prices advanced '/,2 per ton but lead ore prices were unchanged. 8 THE MONTHLY REVIEW Business Conditions in the United States By the Federal Reserve Board ... coo Pt RC[NT 140 1'0 INDUSTRI AL PRO OUC T!ON 130 1?0 .A_ 120 110 KlO I' . " " ' ....-- 120 \ / 110 ""\ 90 eo 100 90 "-A 60 "~ 70 60 SO 1927 mo 1929 1928 70 60 50 19)1 1932 Index number of industrial production, adjusted for seasonal variation. (1923-1925 average= 100.) L atest figure, August. 6o. PCAClHT Pr.RCUn 120 120 .a.ND PAYROLLS 110 100 90 601--- + -70 l-----+-- - + - - + - ~N-=:c-'-'--=-t-- - 80 -+-- 70 - + - - - --IJ--',,--->,ci--- 60 f----+---+-- - t - - - + - 50 ---'--,= n~,~--,,19=30,------.-cc:193,,,..,---'-~ 1932=- 30 30 ,__19= 21,.........----=1n= e Indexes of tactory employment and payrolls, without adjustment for seasonal variation. (1923-1925 average = 100.) Latest figures August, employment 58.6, payrolls 40.1. , tn C!llT Pt RC lMT 160 160 BUI LD ING CONTRACTS AWARDED 1ft0 I '--'::----c ,..:.+-' -~+--N "'£~~+--- + - --l-------l110 120 f=••- ....,r Total ••\J \. \;;/~·.,,,-----">\'F-~""\- + - - - + - ~ 100 eo eo 60 t--- - + - - - + --\-~,~R•="d="'= 1al-1-'r'\... .......:,,,__..;1---160 --4-\_,,•_•••_,,_:·,._+-,•~••~ ' ~ ----l •o l+O t ---'--+----+2o r---- --t-- 1927 ····-.. \.__. - + -1928 + -- 1929 - +- ----,hc~- - -- 1 20 1932 1931 1930 lnde>,,.es based on three month moving averages ot F. W. D odge data for 37 Eastern States, adjusted for seasonal vari ation. (1923-1925 average= 100.) L atest figures August, total 29, residential II . Mll llOH., 0, 0Oll.lllt$ 6 ~ MLLUONS 0, DOLU ll$ RESERVE BANK CREDIT AHO fACTORS IN CHAIIGES 6000f----+-- - "-'OO --+----1--~1----+--- - loooo ,.. 550 0 , - - - - - + - --t-M-o,,,y _•_C....._ ·.,,- ,t-;,.~ f - - -/--.'9--""-""-15500 : ---···- ···· 5000 _ ~. 1 -J<I / . •/ \ :: S000 ;;;;~~-. \ 3500-~-~---~~....... ....,,,_~,.,.•.,~ - - - - -•"00 2soo 1:::::::::;;::.r=;:::::;;c:::!:=::::::~·"== ' '"::,"'a'•r;;:. "'c: "nt=~-t-7'-i 2000 ~ .r_ : : ..........~ 1500 r -----:.f b - J =--p,.i.::-c::;;~-~R,-',t::!!;,-:ie::...t'_kl---f' +" ..::._--11500 ' IOOO l---""/'--t-V -----jf---+ \._~_.LJf\-;./-/:_i.._--1 1000 500 '--;-;;=-...........,,=.,~.~~,9=29---'-~ ,=~ ~o-'-~,9=31-'-~ 193~2..,., 500 M onthly averages of d aily figures. Latest figures are averages of first 21 days in September. Volume of indistrial production increased from July to August by considerably more than the usual seasonal amount, reflecting chiefly expansion in activity at textile mills. Wholesale prices ad\.·anced during August and the general level prevailing in the first three weeks of September was somewhat higher than in other recent months. There was a further growth in the country's stock of monetary gold and a non-seasonal return flow of currency to the reserve banks. PRODUCTION AND EMPLOYMENT: Industrial output increased substantially in August and the Board's seasonally adjusted index showed an advance from 58 to 60 percent of the 1923-25 average. Activity at cotton, woolen, silk, and rayon mills increased from the low level of other recent months by considerably more than the usual seasonal amount and there was also a substantial increase in activity at shoe factories. Output of automobiles, however, declined further and production in the steel and lumber industries showed none of the usual seasonal increase in August. During the first three weeks of September there was a slight advance in steel output. Employment at factories increased slightly more than is usual at this season. There were large additions to working forces in the textile, clothing, and leather industries, while in the automobile, tire, and machinery industries and at car building shops the number employed decreased further. Aggregate wage payments increased less than seasonally. Building contracts awarded up to September 15, as reported by the F. W. Dodge Corporation, indicate that for the third quarter the total value of contracts will be about the same as for the second quarter, whereas usually awards for the third quarter are smaller. Currently, contracts for public works are a considerably larger part of the total than they were at the beginning of the year and residential contracts are a smaller part. Department of Agriculture crop estimates based on September 1 conditions indicate little change in prospects during August. Indicated crops of wheat and tobacco are considerably smaller than in other recent years, while the corn crop is the largest since 1925. The cotton crop is estimated at u,300,000 bales, a decrease of about 6,000,000 from the large crop of a year ago. DISTRIBUTION: Volume of merchandise and other freight handled by the railroads increased seasonally during August, while during the corresponding period a year ago no increase was reported. Department store sales of merchandise increased from July to August by somewhat less than the usual seasonal amount. WHOLESALE PRICES: Wholesale commodity prices advanced from 64.5 percent of the 1926 average in July to 65.2 percent in August, according to the monthly index of the Bureau of Labor Statistics. During August prices of many leading commodities, including textile raw materials and finished products, wheat, hides, nonferrous metals, sugar, rubber, and coffee, increased substantially. In the first half of September there were declines in the prices of m any of these commodities, while prices of wool and woolen goods, cat tle, and hides advanced. BANK CREDIT: During recent weeks further growth in monetary gold stock, a return flow of currency from hoards, and new issues of national bank notes have resulted in additions to the reserve funds of member banks. These banks have employed a part of the funds in further reducing their borrowings at the reserve banks and have accummu!ated a part as reserve balances, which at the present time are more than 300,000,000 in excess of required reserves. Reserve bank holdings of United States Government securities and of acceptances remained practically unchanged during the four weeks ending September 14, while the total of reserve bank credit declined by $43,000,000 through the reduction of discounts for member banks. Loans and investments of reporting member banks in leading cities showed little change between the middle of ·August and the middle of September. A further decline of more than $ 150,000,000 in loans by banks outside New York City during the past four weeks was offset in large part by continued increase in investment holdings, chiefly at member banks in N ew York City. There was a considerable growth in deposits of reporting member banks, reflecting in part larger balances held by city banks for the account of other banks. Money rates in the open market remained unchanged at low levels during August and the first half of September.
@FedFRASER