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THE MONTHLY REVIEW Of Agricultural, Industrial, Trade and Financial Conditions in the Tenth Federal Reserve District FEDERAL Vol. I 8 RESERVE KANSAS CITY, BANK Mo., ENERAL and generous rains in recent weeks have . relieved the drouth conditions prevailing throughout this District. , Moisture supplies arrived too late to enhance crop yields materially but improved pastures and ranges and late feed crops, replenished water supplies, and alleviated a deficiency of soil moisture generally. Wheat seeding, which was delayed by dry soil, is now progressing rapidly under favorable planting conditions. Crop prospects, notably spring grains, corn, potatoes, and fruit, are, with few exceptions, the poorest in years for all states in the District. G OF OCTOBER 1, KANSAS 1931 CITY No. IO BUSINESS IN THE TENTH FEDERAL RESERVE DISTRICT Percentages oflncrease, or Decrease(-), for August 1933 over July 1933 and August 1932 and for the first eight months of 1933 over the like period in 1932 Arrivals of all classes of grain at primary markets declined abruptly in August, reflecting short crops and a tendency on the part of farmers to hold their grain rather than sell at current prices. Marketings of livestock were somewhat heavier for the month but, with the exception of horses and mules, and the rush of hogs, mostly pigs, to market under the Government program, were lighter than a year ago or for several years. The cattle and hog divisions of meat packing establishments were more active in August than is usual at this season. August 1933 8 Months 1933 Compared to Compared to Banking July 1933 Aug. 1932 8 Months 1932 Payments by check___________________ --21.6 5-5 - 7.5 Federal Reserve Bank clearings______________ -10.2 12.3 - 1.9 Business failures, number________________________ 12.0 -51.7 -31.8 Business failures, li abilities______________________ 398.8 -33.0 -57.2 Loans, 52 member banks________________________ - 3.6 -11.3 Investments, 52 member banks______________ - 0.3 19.4 Net demand deposits, 52 member banks - 2.2 7.9 Time deposits, 52 member banks____________ Even - 7.3 Savings deposits, 44 selected banks_______ 0.3 - 7.0 Savings accounts, 44 selected banks______ 0.3 - 2.1 Distribution Wholesalers' sales, 5 lines combined _____ _ 0.1 13.2 Retailers' sales, 32 department stores___ _ 21.6 - 6.9 Lumber sales, I 57 retail yards _______________ _ 10.8 - 8.5 Life insurance, writteu_____ 6.8 -10.7 Construction Building contracts awarded, value _________ _ 2.6 -3 2.9 9.3 Residen tial contracts awarded, value ___ _ - 1.7 6.3 39.7 Building permits in 16 cities, value _______ _ -41.2 16.0 -49.3 Production o.8 -25.6 Flour·--------------------------------------------------------- -23.0 Crude petroleum ______________________________________ _ J.2 41.1 n.5 Soft coal _ _ _ _ __ _ _ _ _ __ 2 4·4 44.2 - 5.5 Zinc ore (shipped) Tristate District _____ _ 194•5 1 3·9 75.7 Lead ore (shipped) Tristate District_____ _ 122.6 56.6 544.6 Cement. ____________________________ 7.6 -21.7 - 9.3 Grain receipts, 5 markets Wheat____________________ _________ -68.4 -65.8 -4 2 .5 Corn __________ __ ______________________________________________ _ 20.7 215.3 -79.3 Oats _____________________________________________________________ -52.2 61.3 -73-4 Rye _____________________________________________________________ _ 159·4 409.6 -35.4 27.8 7.1 -53.6 Barley ·-----------------------------------------------------Kafir ____________________________ _______ _____ __________________ __ -6x_6 -50.4 -69.4 Livestock receipts, 6 markets Cattle _______________________ _________________ _ - 2.5 - 9.8 Calves__________________________ 7.6 - 14.9 Hogs ______________________ 2.5 57.x Sheep _______________________________ _ I.I - 9.1 Horses and mules _____________________________________ _ 25·3 140.7 Meat packing, 6 markets Cattle ______________ ___________________________________________ _ 2 5•5 6.7 36.3 Calves______________________________________ 5.1 10.7 4.4 Hogs ___________________________________________ _ 9.8 4o.9 59· 2 Sheep ____ __ __ _____ ____________________________________________ _ -12.2 -12.8 1.3 Stocker and feeder shipments, 4 markets Cattle __________ -46.6 - 3.6 146.7 Calves________________________________________________________ _ 104.2 -15.8 33-9 Hogs ___________________________________________________________ _ -69.2 45.o 95-7 Sheep ______________________ _______________ 15·9 9.0 232.4 Flour production declined sharply during the month to unusually low levels as was also true of cement. Output of bituminous coal increased by more than the usual seasonal rate and exceeded the total for August, 1932, by 24.4 per cent. Crude oil production made a slight gain as compared to July and was substanti ally larger than a year ago. Shipments of zinc ore and lead ore were considerably heavier in August than in July this year or August last year. Building activity remains quiet. Trade at both wholesale and retail improved in August, both as compared to July this year and August last year. The seasonal gain in wholesale trade over July was somewhat smaller than usual, but the increase of 38. 5 per cent in department store sales was the largest ever reported. For the fourth consecutive month, wholesale and retail sales were larger than a year ago, increasing r 3.2 and 21.6 per cent, respectively. Agricultural commodity prices showed little change during the month. Most livestock values were off slightly, with sheep the only class to sell above 1932. Butterfat was lower, eggs higher, and poultry unchanged for the month, selling at or below last year's levels. All classes of grain, except wheat, which showed a fractional loss for the month, were somewhat higher on August 31 than July JI and closed considerably above a year ago. Cotton prices showed a loss for the month but a gain for the year. Prices of commodities farmers sell dropped 4 points and prices of things they buy advanced 5 points between July 15 and August 15, resulting in a reduction of IO per cent, or 7 points in the exchange value of farm products. The Department of Agriculture's index of farm prices as of August r 5 stood at 72 per cent of the 1909-1914 average, and the purchasing power of the farm dollar at 64 per cent compared to 7r per cent on July r 5 this year and 55 per cent as of August r 5, 1932. This Copy Released For Publication In Afternoon Newspapers. September 29. THE MONTHLY REVIEW Financial MEMBER BANK OPERATIONS: Loans and discounts of fifty-two member banks in selected cities of the Tenth District declined 3.6 per cent between August 9 and September 13, and the total as of the latter date was 11.3 per cent below that of September 14, 1932. The decline for the five weeks' period followed four successive gains since April, on a mid-month comparative basis, and was confined to "all other" loans as loans secured by stocks and bonds showed no change. Total investments, after showing a steady increase since the forepart of May, also declined during the five weeks' period and on September 13 were 19.4 per cent larger than one year earlier. Investments in United States security holdings were reduced 0.5 per cent in five weeks and enlarged 35.3 per cent in nfty-two weeks, whereas, investments in other bonds, stocks, and securities were unchanged for the five weeks' period and reduced less than I per cent since September 14 last year. Net demand deposits, which increased almost 15 per cent from April 12 to August 9, declined 2.2 per cent between then and September 13 when they were 7.9 per cent in excess of the total as of September 14, 1932. Time deposits were the same on September 13 as five weeks earlier but 7.3 per cent smaller than one year earlier. Principal resource and liability items of fifty-two reporting member banks, as shown by the combined weekly condition statement of September 13, with comparisons: Sept. 13, 1933 Loans and investments-total.. Loans and discounts-total__ __. Secured by stocks and bonds All other loans and discounts lnvestments-tota U. S. securities ........................ Other securitie Reserve with F. R. bank.-........• Net demand deposits .................. Time deposits ...... Government deposits.................. 'f, 509,000,000 213,000,000 57,000,000 l 56,000,000 296,000,000 188,000,000 108,000,000 63,000,000 354,000,000 164,000,000 15,000,000 Aug. 9, 1933 Sept. 14, 1932 '/,518,000,000 'f,48 8,000,000 221,000,000 240,000,000 69,000,000 57,000,000 171,000,000 l 64,000,000 248,000,000 297,000,000 l 89,000,000 139,000,000 108,000,000 109,000,000 63,000,000 43,000,000 328,000,000 362,000,000 164,000,000 177,000,000 10,000,000 3,000,000 RESERVE BANK OPERATIONS: Bills rediscounted for member banks by the Federal Reserve Bank of Kansas City and branches declined 14.4 per cent during the five weeks ended September 13, and on that date the indebtedness of member banks to this bank was the lowest since March II, 1925. Holdings of bills purchased in the open market, which were reduced somewhat during the five weeks' period, totaled but $177,445 on September 13, or less than at any time since January 30, 1924. The bank extended its purchases of United States Government securities, and mid-September holdings were 10.5 per cent larger than five weeks earlier and 27.5 per cent larger than one year earlier. This increase in Government securities accounted for increases in total holdings of bills and securities of 8.9 per cent in five weeks and 0.5 per cent in fifty-two weeks. Federal reserve note and Federal reserve bank note circulation declined 2 and 1.7 per cent, respectively, in five weeks, and on September 13 outstanding issues of the former were 15.6 per cent greater than on September 14, 1932. Federal reserve bank notes were placed in circulation in May this year. Reserve deposits of member banks showed a slight decline for the five weeks' period, but on September 13 they were 56.7 per cent larger than a year ago. Principal items contained in the weekly condition statement of this bank and branches, as of the three dates mentioned, are here shown: Sept. 13, 1933 Aug. 9, 1933 Sept. 14, 1932 Gold reserve..________ 'f,140,325,392 'f,149,962,161 '/, 85,897,422 Other cash ........ _ _ _ _ _ _ 9,487,878 10,182,603 7,320,809 Bills discounte...._______ 4,198,202 4,788,673 18,814,188 Bills purchased .. _ _ _ _ _ 177,445 197,822 894,186 U. S. securities ........ - - - 73,007,700 66,096,100 57,267,100 Total bills and securities............ 77,383,347 71,082,595 76,975,474 Total resources .... _ _ _ _ _ 255,653,858 257,303,431 196,768,630 F. R. notes in circulation.......... 108,907,135 111,162,235 94,288,015 F. R. bank notes in circulation.. 966,900 983,722 Member banks' reserve deposits 106,028,035 106;563,729 67,647,190 The discount rate of the Federal Reserve Bank of Kansas City, on all classes of paper and all maturities, remained unchanged at 3.½ per cent. Savings in Banks Forty-four banks in selected cities of the District reported increases of 0.3 per cent, both as to the number of savings depositors and the amount of their deposits, between August 1 and September I. Total savings deposits as of the latter date were 7 per cent smaller than on September 1, 1932, and the loss in the number of savings accounts amounted to 2.1 per cent. Total savings deposits and the number of savings accounts as reported by forty-four banks for three dates of comparison: September 1, 1933.................................. August 1, 1933 .................... _ _ _ _ September 1, 1932 ........- - - - - Savings Accounts 366,883 365,784 374,616 Savings Deposits $ 98,029,594 97,779,400 105,436,483 Bank Debits Banks in twenty-nine leading cities of the District reported debits to individual accounts for the five weeks ended September 6 as 21.6 per cent less than for the preceding five weeks' period ended August 2, but 5.5 per cent larger than for the corresponding five weeks last year. The improvement over a year ago compares with an increase of 18.6 per cent reported for the preceding five weeks and is the third consecutive increase recorded. Payments by check during the first thirtysix weeks of 1933 were 7.5 per cent smaller than for the like period in 1932. The check payment totals: Albuquerque, N. M ....-............... Atchison, Kans.·---····················· Bartlesville, Okl Casper, Wyo. Cheyenne, Wyo ... Colorado Springs, Colo ..- ........... Denver, Colo............................... Enid, Okla........... Fremont, Nebr. Grand Junction, Colo ................. Guthrie, Okla ...... Hutchinson, Kans ....................... Independence, Kans ................... Joplin, Mb .. , ................................ Kansas City, Kans ..................... Kansas City, Mo Lawrence, Kans Lincoln, Nebr. Muskogee, Oki Oklahoma City, Okla ................. Okmulgee, Okla........................... Omaha, Nebr....... Pittsburg, Kans ... Pueblo, Colo Salina, Kans ................................. St. Joseph, Mo Topeka, Kans.·--························· Tulsa, Okla.·- ······························· Wichita, Kans ............................. Total 29 cities, 5 weeks ............ Total 29 cities, 36 weeks.........._ Per cent FIVE WEEKS ENDED Change Sept. 7, 1932 Sept. 6, 1933 --20.2 'f, 6,183,000 i 7,746,000 1 7•3 2,755, 000 3,232,000 19,0:21,000 6.5 20,255,000 -16.5 5,652,000 4,7 17,000 -12.1 4,093,ooo 3,597,000 10,662,000 11,483,000 7.7 6.8 120,943,000 I 13,293,000 7.1 8,445,000 9,045,000 -10.4 1,974,000 2,204,000 -20.6 1,454,000 1,832,000 1,258,000 1.4 1,275,000 11,680,000 -6.7 12,517,000 60.2 2,510,000 4,020,000 5,200,000 48.2 7,705,000 10,061,000 -10.5 9,005,000 250,108,000 12.5 281,438,000 2,869,000 2,741,000 4.7 22,208,000 20,023,000 10.9 5,643,000 4.7 5,39 1,000 - 1.0 61,778,000 62,403,000 - 0,2 2,282,000 2,287,000 o.6 120,725,000 120,047,000 2,797,000 2,935,000 4.9 - 4.2 12,037,000 11,533,000 7,224,000 7,199,000 03 18.2 23,284,000 27,517,000 12,1 82,000 -2.3 11,901,000 - 2.8 69,745,000 7 1,775,000 2.8 32,120,000 31,233,000 'f, 876,486,000 'f, 830,756,000 6,258,365,000 6,764,269,000 - 5.5 7.5 3 THE MONTHLY REVIEW Stores Reporting Kansas City........ 4 Denver.... ............. 4 Okla~.oma City.... 3 Tulsa.·---··········· ·· 3 Wichita................ 3 Other cities .......... 15 RETAIL TRADE AT ,:2 DEPARTMENT STORES IN THE TENTH FEDERAL RESERVE DISTRICT SALES . STOCJCS (RETAIL! ACCOUNTS RECEIVABLE : AMOUNTS COLLECTED August 1933 8 Months 1931 August 31, 1933 STOCJC TUR.NOVEil August 31, 1933 August 1933j compared to compared to compared to August 8 Months compared to compared to August 1932 8 Months 19]'l July 31,1933 Aug.31,1932 1933 1932 1933 1932 July 31, 1933 Aug. 31, 1932 July 1933 Aug. 1932 18.8 - 9.6 7.8 . - 6.7 .19 .15 1.36 1.25 7-S 5.9 -16.4 - 3.6 31.3 - o.8 8.o 2.7 .31 .23 2.05 1.71 8.2 9.3 - 9.1 IO.I 11.8 - 9.8 16.9 1.9 .28 .24 2.19 1.76 4.3 -.0.7 -23.0 - 4-6 24.5 2.3 28.0 36.3 .27 .26 2.97 2.75 6.4 19.9 -14.5 11.3 : 8.8 -11.6 10.3 -30.2 .32 .19 1.97 1.51 13.5 -20.2 -21.7 -15.3 J. / .9 -IO.I 2i;.2 7.1 ,23 .19 I,81 I.74 1,0 - 5•4 -I0,8 1,0 TotaL_ ................. 32 21.6 - 6.9 13.9 o.8 .25 .20 NOTE: Percentage of collections in August on accounts July 31, all stores reporting 32.5. Reserve Bank Clearings The Federal Reserve Bank of Kansas City and branches handled 4,226,096 checks, representing $570,082,cY-'O, for collection in August. These totals represent decreases of 2.2 per cent in the number of items handled and 10.2 per cent in the amount as compared to July, and increases of 11.4 per cent and 12.3 per cent, respectively, as compared to August, 1932. For the eight months of the current year the number of items handled shows a reduction of 10.7 per cent, and the amount a reduction of but 1.9 per cent. Check collections through this bank and branches at Omaha, Denver, and Oklahoma City: AMOUNT 1933 1932 $ 570,082,000 ' 507,698,000 634,691,000 51 7,659,000 4,177,412,000 4, 257,4 27,000 ITEMS August.............. July .................. . Eight months ... 1933 4,226,096 4,323,092 3 1 ,599,766 1932 3,794,063 3,742,110 35,387,915 Commercial Failures There were fewer than half as many commercial failures in this District in August this year as in August, 1932, and the amount of liabilities involved was a third less. Nine more insolvencies were recorded in August than in July and the amount of liabilities increased almost 400 per cent over the unusually low July total. Business failures, in this District and the United States, as reported by Dun and Bradstreet, Inc.: TENTH DISTRICT UNITED STATES Liabilities Number Liabilities Number August 193_,___ _ _ __ 1,472 $ 42,776,049 84 $ 3,019,247 July 1933.................................. 1,421 27,481,103 75 6o5,334 August 1932_ _ _ _ __ 2,796 77,031,212 174 4,508,317 Eight months 193..>--- - 775 12,476,488 15,616 397,847,900 Eight months 1932................ - 1,136 29,135,335 22,825 701,505,139 Trade Retail trade in leading cities throughout the Tenth District, as indicated by dollar sales of thirty-two department stores, showed an increase of 38.5 per cent over July and of 21.6 per cent over August, 1932. The seasonal increase over July was the largest ever reported by these stores and compares with a normal increase of about 20 per cent. The comparison with August of the preceding year is also unusually good and marks the fourth consecutive and largest increase for the month under review over the like month of the previous year. May, with Reporting Stores Dry goods .... 6 Groceries ........................ 4 Hardwar 9 Furnitur 5 6 Drugs....·-······-·-···-········ I.6o 5•5 l.4 Collections same month! ast year 29.7. 1,82 -13.6 2.0 an increase of o.8 per cent, was the first month in four years to show a gain over the previous year and was followed by increases of 1.8 per cent for June, and 6.2 per cent for July, compared to June and July, 1932. Department store inventories also showed an increase for the month somewhat larger than usual. Merchandise stocks on hand August 31 were 13.9 per cent larger than on July 31 and with a gain of o.8 per cent were, for the first time in five years, larger than on the same date one year earlier. Composite figures for the reporting stores showed a collection percentage for August on amounts outstanding July 31 of 32.5 per cent, which compares with a July figure of 34.2 per cent and an August, 1932, figure of 29.7 per cent. Wholesale trade also improved in August, both as compared to the preceding month this year and the corresponding month last year. Dollar sales of five representative lines combined increased 2.9 per cent for the month and 13.2 per cent for the year. Sales of dry goods were 6.7 and of hardware 2.2 per cent under the July totals, but sales of groceries, furniture, and drugs increased 11.4, 25.4, and 9 per cent, respectively. The five lines showed the following percentage increases over August, 1932: dry goods, 4.8, groceries 12.4, hardware 26.8, furniture 60, and drugs 3.5 per cent. Inventories of dry goods and furniture as of August 31 were larger, and of drugs smaller, than one month or one year earlier. Stocks of groceries and hardware were reported slightly larger than on July 31, 1933, and slightly smaller than on August 31, 1932. Crops Rains the latter half of August and the forepart of September have greatly relieved the drouth situation that has prevailed over the greater part of this District the past three years. The surface soil is generally well supplied with moisture but the sub-soil needs additional supplies. Only a few scattered areas remain dry. The first two weeks of August were dry, with temperatures above normal which caused additional injury to growing crops, but the rains and cooler temperatures thereafter were beneficial to corn, not previously damaged beyond recovery, grain sorghums, hay, pastures, cotton, beans, sugar beets, broom corn, tobacco, fruits, particularly grapes, and late gardens. Rainfall in the winter wheat areas aided in seed bed preparation and greatly improved seeding conditions. WHOLESALE TRADE IN THE TENTH FEDERAL RESERVE DISTRICT OuTSTANDINGS AMOUNTS COLLECTED SALES Aug. 31, 1933 compared to Aug. 1933 compared to Aug. 1933 compared to Aug. 1932 July 3 1, 1933 Aug. 31, 1932 Aug. 1932 July 1933 July 1933 4.8 0.4 5.2 - 6.7 5.7 J.5 II.2 5.0 13.0 12.4 II.4 5.0 -12.1 26.8 2.2 1.9 16.7 3.8 2 5·4 6o.o 49.o 7.3 - 3.4 5.9 I.'.l -4.8 9.0 3.4 J.5 J.5 STOCKS Aug. 31, 1933 compared to July 31, 1933 Aug. 31, 193:1 10.7 12.5 - 3.7 3.5 - I.I 0.3 19.6 7.2 -13.6 - 2.7 THE MONTHLY REVIEW 4 The rains ·came too late to increase crop yields, other than grain sorghums, materially, but September 1 prospects were slightly better for all crops, except corn and sugar beets, than one month earlier. On the whole, 1933 yields will be the smallest in years with only three minor crops, tobacco, grapes, and peanuts, exceeding the five-year average. Production of grain sorghums, sugar beets, dry beans, tobacco, apples, and peanuts will be larger than in 1932. JI Crop}yields in~the1United"States';:and] the seven states'.i:whose ar~as or parts thereof comprise the Tenth District, as indicated by September I [Conditions, compared with the final estimates of the Department of Agriculture for 1932 and the five-year average production: (In thousands of units-ooo omitted) SEVEN STATES Sept. 1 1933 Winter wheat, bu. 130,027 Spring wheat, bu. 7,892 All wheat, bu ... 137,919 Corn, bu .............. . 512,401 Oats, bu··---········· 105,547 Rye, bu ................ . 1,948 Barley, bu .. _........ . 21 ,745 Grain sorghums, bu. 39,906 Tame hay, tons._. 10,568 Wild hay, tons·--· 3,209 Broom corn, tons 22 Sugar beets, tons. 4,182 Cotton, bales........ 1,410 White potatoes,bu. 27, 159 Sweet potatoes,bu. 2,686 Dry beans, bags._. 2,076 Tobacco, lbs ......... 8,418 6,890 Apples, bu.·-········· Peaches, bu.·--····· 9 27 Pears, bu .. - ........... 579 20 Grapes, tons.---··· Peanuts, lbs ........ . 22,IO0 Pecans, lbs ........... II,300 UNITED STATES Final 5-Yr.Av. Sept. 1 Final 5-Yr.Av, 1932 1926-30 1933 1932 1926-30 196,278 302,796 340,355 461,679 589,733 6,340 u,522 166,202 264,604 271,435 202,618 314,318 506,557 726,283 861,168 676,625 585,723 2,284,799 2,875,570 2,5u,991 174,410 162,994 687,647 1,238,231 1,189,693 3,505 4,500 23,n6 40,409 41,564 39,7o2 33,353 1 59,339 299,95° 263,6 29 39,231 40,344 97,845 105,871 93,182 10,878 12,091 65,290 69,794 72,678 4,248 4,349 9,122 I'.2.,187 II,489 28 41 27 37 49 3,160 4,318 10,266 9,070 7,718 1,463 1,457 u,414 13,002 14,834 35,39 1 40, 166 293,585 357,679 355,438 3,204 2,941 69,089 78,484 62,483 1,085 2,376 9,818 10,164 II,107 7,175 4,625 1,361,745 1,015,512 1,4n,697 5,406 8,337 149,408 140,775 168,773 1,735 2,391 45,633 4 2,443 56,575 591 1,094 21,751 22,050 22,921 22 19 1,722 2,204 2,447 21,830 21,250 912,040 1,002,080 8II,OOI 20,250 13,720 55,763 53,160 59,464 CORN: Corn in western Kansas and Oklahoma is a near failure. Nebraska is the only state in this District which will produce an average crop, although the year's returns will be about 35,000,000 bushels short of last year's harvest. In Colorado and Wyoming production will exceed the extremely short crop of 1932. Late planted fields were benefited by rains and, although maturing nicely, are in need of extended warm weather to escape frost injury. Most corn is ripening rapidly with much being cut for fodder and ensilage or snapped for feed. In general present moisture supplies are ample to mature the crop. Corn production in the states of this District, as estimated by the United States Department of Agriculture, in thousands of bushels: Colorado. __ ,...... Kansas .............. Missouri ............ Nebraska.......... New Mexico. __ . Oklahoma. __ ..... Wyoming.......... Seven states...... United States._. Indicated Aug. 1, 1933 Sept.ti, 1933 20,999 19,090 90,108 97,6 17 126,610 132,365 235,014 245,232 3,024 3,024 28,701 22,323 2,190 2,409 5n,401 2,284,799 516,305 2,273,019 Final 1932 13,363 136,197 186,721 269,293 3,267 65,760 2,024 676,62.5 1 2.,875,57o 5-Yr.Av. 1926-30 22,936 127,412 150,072 224,658 3,556 54,3°5 2,784 585,7 23 2,5n,991 COTTON: Present indications are that 10,396,000 acres, or 25.5 per cent of the acreage of cotton in cultivation in the United States on July 1, has been or will be taken out of production under the Agricultural Adjustment Administration program. Of this total, 1,300,000 acres are in the states of Oklahoma, Missouri, and New Mexico. The acreage remaining for harvest in the United States is estimated by the Crop Reporting Board of the United States Department of Agriculture as 3,353,000 acres. With a September 1 condition estimated as 67.5 per cent of normal, United States production, on the area left for harvest, is forecast at 12,414,000 bales. In 1932, 37,589,000 acres produced 13,002,000 bales. A summary of acreage and production follows: 30,036,000 acres and in the three states as Production (Bales) [Acreage Removed Acreage Remaining Indicated Final From Cultivation 1933 For Harvest Sept. 1'. 1932 tAcres % of total Sept. I J Dec. 1 1933 1932. 1933 Oklahoma. __ . 1,16o,ooo 2,932,000 3,123,000 1,133,000 1,084,000 Missouri. ...... . 110,000 337,000 390,000 212,000 307,000 New Mexico.. 84,000 II2,000 65,000 72,000 30,000 Three states.. 1,300,000 U.S ............... 10,396,000 27.7 25.5 3,353,000 3,625,000 1,410,000 1,463,000 30,036,000 37,589,000 12,414,000 13,002,000 Cotton in this District has done well. Acreage abandonment, which is not included in Government removal contracts, is small. A September 1 condition of 72 per cent for Oklahoma indicates above average yields per acre. Cloudy weather and excessive rains in August caused rank growth in central and eastern parts of that state, but warm weather the forepart of September was helpful. Bolls are opening satisfactorily and picking is progressing in all states. Some injury from boll weevil and the cotton leaf worm is reported. MISCELLANEOUS CROPS: Grain sorghums show the greatest improvement as the result of recent rains which came just in time to save the bulk of the crop. Tame and wild hay were also benefited, but production will be below average in all states. Harvesting of one of the best sugar beet crops in years will begin about the first of October and sugar making will last about four months. Colorado reports a light set of dry beans, due to the drouth, and the crop considerably improved since the rains. White potato yields in;iNebraska, Oklahoma, Kansas, and Missouri are the lowest in years. The Colorado crop was planted late and has been one to two weeks late all season. In Wyoming and New Mexico the crop is considerably larger than a year ago or the five-year average. Sweet potatoes were materially helped by rains. Missouri tobacco has experienced a favorable season and a good crop is now being cut and housed. Oklahoma, which produces about one-half of the nation's broom corn, will harvest 115,000 acres of that crop this year compared to 142,000 acres last year. A September 1 condition of 61 per cent compared to 43 per cent August 1, 59 per cent Septemher 1, 1932, and the ten-year average of 70 per cent is reported. Abandonment has been unusually large due to the drouth. Fruit prospects are the poorest in years and are below average in all states. Missouri will have a good crop of apples and grapes, both of which have improved recently. Apples are being marketed at somewhat better prices than a year ago. WINTER WHEAT SEEDING: For the first time in three years conditions are good for wheat planting. Seed beds are mostly prepared and much seeding has been done but much more will be held up until Hessian "fly free" dates. The 1934 wheat area is to be reduced l 5 per cent under the Government program. North American supplies of wheat, United States and Canada, total 1,398,000,000 bushels, or 291,000,000 bushels less than last year, but Europe has a record crop and unusually large stocks with a probable carryover of 175,000,000 bushels greater than a year ago. 5 THE MONTHLY REVIEW Grain Marketing Reversing the trend of the preceding month, August receipts of corn, oats, rye, and barley, at the five leading market~ of the District, were extremely light. Offerings of oats were the smallest for any August in fifteen years of record which, excluding 1932, was also true of corn, rye, and barley. Marketings of wheat, which are usually the second heaviest of the year, were the lightest since April, the smallest for any August of record, and equal to but about one-fifth the normal offerings. Arrivals of kafir were also light, equalling 32.6 per cent of the ten-year average for August. The light receipts of wheat, oats, rye, and barley reflect in part the extremely short crop, but producers are reluctant sellers at prevailing prices which are substantially below recent quotations. Arrivals of grain at the five markets: Corn Oats Bushels Bushels 10,000 3,000 853,5ooj II6,ooo 707,000 '1'1'1,000 474,000 142,000 52,000 45, 000 R ye Bushels Barley Bushels 22,500 71,400 49,600 51,200 1,750 August 1933.. 6,828,400 2,096,500 528,000 July 1933 ...... 21,608,000 10,128,750 1,983,000 August 1932.. 19,976,100 1,737,500 1,103,500 8 Mos. 1933.. 76,741,400 34,161,550 8,248,000 8 Mos. 1932.. 133,448,650 10,835,050 5,II2,ooo 93,900 145,300 36,200 676,200 132,700 Hutchinson ... Kansas City.. Omaha .......... St. Joseph. __. Wichita·--····· Wheat Bushels 548,100 3,o94,4oo 1,900,800 593,6oo 691,500 Kafir Bushels 5,200 33,600 1,500 1,300 --- --- --- --- 102,550 41,600 221,000 135,900 80,250 108,200 627,850 952,600 586,250 1,920,600 With trading subject to restrictions and in the absence of speculative demand, fluctuations in grain prices during August were comparatively narrow. All grains except wheat, which declined approximately I cent per bushel, registered increases for the month. Restrictions on minimum prices of grain futures effective as of the close of July 31, were· removed August 16: hut the limitations of maximum daily net advances, or declines of 5 cents per bushel for wheat, rye, and barley, 4 cents for corn, and 3 cents for oats, are still in effect. Cash grain prices at Kansas City, in cents per bushel: No. No. No. No. No. No. Sept. 20 1933 I hard and dark wheat.. '/,.92 2 mixed corn .................. .47¼ 2 white oats .39 2 rye .... .72 .47 2 barley·---····················· 2 kafir 1.08 Aug. 31 1933 $.85¼ .47¼ .37 .74. .47 I.IS July 31 1933 $.86¼ .43 ½ .32 .67 .44 1.08 Aug. 31 1932 '/,.47¼ . 29¼ .18 .39 .24¼ .63 July 30 1932 $.46¼ .32 .18 .39 .24 .60 Flour Iv1illing Following the rush of orders stimulated by rapidly advancing grain prices and the desire to secure delivery before the processing tax became effective July 9, the demand for fl.our has subsided in recent weeks. The August output of Tenth District mills was 23 per cent under that for July, 25.6 per centless than a year ago, . the lightest for any August in over fifteen years, and equal to but 66.2 per cent of the ten-year average volume. Mills operated at 46.3 per cent of capacity in August, 62.4 per cent in July, and 61.3 per cent in August, 1932. August sales were mostly of carlots for immediate needs although, as wheat prices declined, some round lots and several large orders were booked. With wheat prices hovering around the "pegged" minimum the first two weeks of August, prices were unchanged but thereafter declined in sympathy with wheat. Low dairy and poultry prices, rains that stimulated pasture growth, and the pig slaughter campaign were contributing factors in a lagging demand for millfeeds. With the outlet restricted and grain prices lower, millfeed quotations were marked down substantially. Flour production in this District as estimated from the weekly reports of southwestern mills to the Northwestern Miller: Atchisou------························· Kansas CitY·--·····----Omaha...... _ _ _ _ _ _ _ __ Salina.... - - - - - - - - - - Wichita. __ · · · · · · · · · - - - - - - - Outside. _ _ _ _ _ _ _ _ __ :Jt~,..___________ Aug. 1933 Barrels 106,138 39 1, 237 78,148 125,698 l46,759 634,124 July 1933 Barrels IIl,012 493,557 10 9, 1 57 IIJ,007 168,285 92.9,436 Aug. 1931. Barrels 124,078 641,901 96,450 183,312 181,548 766,100 1,482,104 1,924,454 1,993,389 mted State..__ _ _ _ ················· 4,533,433 5,523,103 5,765,044 *Represents about two-thirds of the total output in the United States. Livestock August marketings of cattle and calves at the six principal markets of the Tenth District, although showing a seasonal increase over July, were, due to low prices and improved ranges and pastures, restricted somewhat. In only two years of the past fifteen, 1929 and 1930, have August receipts of cattle been lighter, and the run of calves was the smallest in recent years. Offerings of sheep and lambs were, as usual, more liberal than at any time since April and the August total, although somewhat less than in the three preceding years, was slightly in excess of the ten-year average. The Federal hog reduction program, inaugurated August 23, resulted in a rush of pigs to market and makes statistical comparisons confusing and of little value. Receipts at the six markets, including hogs and pigs shipped direct to packers' yards, were the largest for any month since February, 1928, and for any August of record. Under the program the Government is paying premiums ranging from '$5.60 to $9.10 per hundredweight at Kansas City on pigs weighing 25 to 100 pounds, the lighter pigs bringing the higher price, and of $4 per head for piggy sows marketed. Originally the plan called for the marketing of 4,000,000 pigs and I ,000,000 sows, but, ~s the marketing of sows lagged, the pig quota was recently increased to 6,000,000 head. Allowing for the average litter per sow, the Government hopes to remove a total of 10,000,000 hogs, or about 16 per cent of the total pork supply, from market channels . Horses and mules were in more normal supply than for several years, with receipts totaling 6,856 head as against 2 848 head in August, 1932. ' PRICES: In general all livestock prices were depressed in August with sheep and lambs making the only favorable comparison with a year ago. Veal calves were somewhat higher for the month but other classes of cattle declined 25 to 50 cents per hundredweight. Butcher hogs showed a net loss of about 20 cents for the month, heavy hogs and packing sows were 50 to 60 cents lower, and pigs were 10 to 25 cents higher. Fat lamb prices broke sharply to close off about 75 cents per hundred pounds, ewes were steady, and mature fat sheep were slightly higher. Lambs brought better returns than a year ago but otherwise all livestock values were lower than in any recent August. With feed costs relatively high, the market for stocker and feeder livestock was limited. The eastern demand for dressed meats was narrow. RANGES AND PASTURES: The September 1 condition of western ranges was described by the Division of Crop and Livestock Estimates as the worst in eleven years for which reports are available. Rains late in August came too late to materially increase feed supplies in the northern areas but benefited southern sections, improved wheat pastures, replenished stock water needs, and deferred the shipment of some livestock 6 THE MONTHLY REVIEW Cattle and sheep suffered some shrink in August and although holding up well are in the lowest September I condition in the eleven years of record. Feed supplies are low and the prospects for fall and winter range feed are poor, and shipments of cattle and sheep from some areas are expected to be heavy. Contracting of feeder lambs has been limited as quite a spread exists between bid and asked prices. Bids range from f,5 to 5.60 per hundredweight, whereas, flockmasters are holding for f,6 and better. A few sales are reported at f,5 and f,5.25, f. o. b. loading point, for September and early October delivery. With breeding flocks reduced and containing a large proportion of old ewes, there is a desire to withhold or purchase ewe lambs. Marketings of cattle and calves from seventeen western states from August to December, inclusive, are, according to the Division of Crop and Livestock Estimates, expected to exceed the very small marketings of last year by 13 per cent, but otherwise the smallest in at least twelve years and 9 per cent short of the 1927-1931 average. Sales of sheep and lambs from thirteen western states for the same period will probably show a decrease of about 5 per cent as compared to 1932 and 24 per cent as compared to 1931. Meat Packing Packers again purchased a larger proportion of the cattle arriving at the six market centers than usual. Whereas, receipts at these markets were equal to· but 81 per cent of the ten-year average for August, the number of animals purchased by packers was equivalent to 106.5 per cent of the average and the August slaughter was the largest for any month since September, 1930, and for any August since 1927. The slaughter of calves, although larger than one month or one year ago, was but about tw0-thirds normal. Government purchases of pigs and sows swelled the numbers of swine butchered to record totals for August. Lamb slaughter was about the same in August as in July but 12.8 per cent less than a year ago, and IO per cent below the ten-year average. Based on the numbers of livestock slaughtered under Federal meat inspection, the August slaughter of cattle in the United States was the largest for any month since November, 1927, and for that month since 1919. Calf slaughter was the largest for the month since 1925, hog slaughter since 1923, and sheep and lamb slaughter the third largest of record, exceeded only by the years 1931 and 1932. The August figures of Federally inspected slaughter for the years 1933, 1932, and 1931: Cattle _ _ _ _ _ _ _ _ _ __ Calve _ _ _ _ _ _ _ _ _ __ Swine....................................................... . Sheep .......· - - - - · ···························· Kansas City············Omaha ........................ St. Joseph ....... ·-········ Denver Oklahoma CitY·-··-··· Wichita.·-················- Cattle 140,549 140,001 4 1,4 27 19,250 23,419 16,550 1933 840,262 415,816 3,476,715 1,532,240 1932 632,515 362,233 2,969,905 1,579,3 27 1931 727,26o 356,961 2,499,920 1,597,6o4 Cold Storage Holdings According to the summary of United States cold storage holdings, issued by the Bureau of Agricultural Economics, United States Department of Agriculture, September 1 holdings of all commodities were larger than a year ago and, excluding a decrease of 38.5 per cent for lamb and mutton, in excess of the five-year average holdings as of that date. Increases over September 1, 1932, were as follows: beef 99, pork 30, lamb and mutton 14, poultry 58, miscellaneous meats 61, lard 123, eggs 31, creamery butter 63, and cheese 35 per cent. Compared to the five-year average September 1 holdings the following increases are noted: beef and pork 20, poultry 16, miscellaneous meats II, lard 74, eggs 3, creamery butter 33, and cheese 8 per cent. Septem her 1 storage stocks of all meats were the heaviest of record for that date and holdings of lard and butter established new high marks. Cold storage holdings in the United States: *Sept. 1 1933 Beef, lbs .._............................................. 48,482 Pork, lbs............................................... 753,134 Lamb and mutton, lbs....................... 1,490 Poultry, lbs........................................... 47,753 **Turkeys, lbs......................................... 4,075 Miscellaneous meats, lbs.·--··············· 73,190 Lard, lbs....... ........................................ 224,207 Eggs, cases............................................ 11,869 Eggs, frozen (case equivalent).......... 2,928 Butter, creamery, lbs,.--- ··················· 175,187 Cheese, all varieties, lbs..................... 108,007 *Subject to revision. **Included in Poultry. 70,962 28,759 132,827 422,623 -438,586 807,855 1,596 44,041 5,709 74,589 218,267 9,503 3,075 150,907 94,300 (ooo Sept. I Sept. I 1932 5-Yr.Av. 24,376 40,45'2 578,876 625,263 1,305 2,421 30,305 41,141 4,286 4,812 45,419 65,901 100,577 128,693 8,616 n,581 2,656 2,813 107,259 132,031 79,847 99,546 omitted). Lumber Reports from 157 retail lumber yards in the District disclose that, although sales of lumber in board feet were 8.7 and 8.5 per cent, respectively, smaller than in July this year or August last year, dollar sales of all materials showed a gain of 14.3 per cent for the month and were 19.7 per cent larger than a year ago. Lumber stocks were fractionally larger on August 31 than July 31 but 3.4 per cent less than on August 31, 1932. Collections in August, amounting to 24.2 per cent on amounts outstanding at the close of the previous month, were the same as for July this year but somewhat better than a year ago when they equalled but 19.3 per cent of outstandings. Percentage changes in retail lumber trade are shown herewith: Sales of lumber, board f e e ~ - - - - Sales of all materials, dollars ............................ Stocks of lumber, board fee..__ _ __ Outstandings, end of month. _ _ _ _ __ AUGUST MOVEMENT OF LIVESTOCK IN THE TENTH DISTRICT RECEIPTS STOCKERS AND FEEDERS Calves Hogs Sheep Cattle Calves Hogs Sheep 26,879 •42 1,954 97,806 45,060 8,422 2,829 21,190 206,238 7,361 311,185 17,267 2,302 1,277 73,896 118,169 183,306 1 ,559 7,076 28,868 4,7°5 754 285,616 2.996 604 20,663 710 55,92.3 3,93° 5,202 81,496 7,432 70,381 5,43 2 7,597 August 1933 ______ 722,858 381,196 54,946 1,124,245 310,956 46,792 615,437 July 193 758,927 August 1932_ ............ 730,661 422,623 64,592 715,735 8 Months 1933.... ·-··· 2,447,762 353,715 6,823,851 5,199,410 8 Months I 932 ___ 2,509,883 3:18,764 6,654,632 5,720,297 •Includes u7,355 hogs shipped direct to packers' yards. • Aug. l 1933 41,845 11,862 5,808 14,086 72,780 54,340 6,595 21 ,439 4,547 75,164 38,406 144,617 43,503 124,820 509,422 467,531 August 1933 Compared to July 1933 August 1932 - 8.7 - 8.5 14.3 19.7 o.6 - 3·4 3.8 -13.6 PURCHASED FoR SLAUGHTER Sheep Calves Hogs Cattle 18,188 •357,3 21 69,625 79,612 6,084 128,463 252,265 95,577 85,22.6 167,858 6,039 34,o73 15,779 2,089 12,514 39,645 13,585 6,070 76,088 4,243 9,261 3,170 57,568 6,979 244,622 194,885 179,41 I 1,45 2,439 1,36o,774 312,142 39,813 95o,745 308,242 35,981 674,764 357,992 37,873 597,073 246,010 6,036,192 2,788,031 235,541 5,498,579 3, 175,o68 7 THE MONTHLY REVIEW Building August building operations in seventeen Tenth District cities, although showing a slight improvement over July, both as to the number of permits issued and the estimated cost of construction, were the lightest for any August in over twenty years. Only abou t 40 per cent of the usual number of p ::-rmits were issued during the month and their value was equal to but I'.2 per cent of the 1923-1932 average. BUILDING P ER MITS I N T ENTH DISTRICT CITIES PERMITS ESTIMATED CosT 1933 1932 1932 1933 Albuquerqu e, N. M. '/, 125,499 $ 84,467 46 55 Cheyenne, W yo....... 28 12,682 3,867 15 Colorado Springs, Colo ..-........... 13,800 30 24 3,845 Denver, Co lo ......... 184,855 267,535 3 14 3 27 Joplin, Mo ................................... 12 16 4,700 36,250 Kansas City, Kans..................... 22 7,000 25 l 5,215 Kansas City, M o......................... 126 108 129,900 103,500 48,366 28,757 Lincoln, Nebr··-··························· 44 55 Oklahoma City, Okla._ .............. 61 100,1 80 68 128,965 Omaha, ebr ............................... 14 2,945 69 71 93,545 Pueblo, Colo 6,867 3,870 27 35 Salina, Kans ................................. 12 1,210 2,675 4 Shawnee, Okla ............................. 3,880 4 9 57° St. Joseph, Mo ..-......................... 21 13,66o 23 4.338 23,015 48,930 Topeka, Kans.·-- -······················· 54 35 Tulsa, Okla ..- .. 52 59,100 34,7 27 73 Wichita, Kans ....... 14,680 77 1,739 73 55 Total 17 cities, AugusL--········Total 16 cities, 8 months........... . 1,001 7,386 992 8,326 $ 847,560 5,536,866 '1,1,677,574 9,412,510 Reports of the F. W. Dodge Corporation reflect increases in residential and total building contracts awarded in this District in August, both as compared to July this year and August, I 932. Total building contracts awarded in this District and the United States as reported by the F. W. Dodge Corporation: August ............. . July.................... Eight months ... T ENTH DISTRICT 1933 193 2 'I, 4,8I9,1 77 'f, 4,696,910 4,407,8I 8 8,195,303 28,906,217 43,103,295 UNITED ST.ATES 1933 1932 'f,106,131,100 '1,133,988,100 82,693,100 128,768,700 621,575,800 929,836,500 Cement Cement mills in this District produced about one-half their normal output of finished Portland cement during August, or less than in any like month in recent years. Compared to July, production declined 9.3 per cent and compared to August last year 21.7 per cent. Shipments declined 38.6 per cent for the month and 49 per cent as compared to a year ago. Stocks were enlarged 13.8 per cent in August and at the close were, August 31, 1930, ex cepted, the l argest of record for that date, or 4.9 per cent larger than at that time last year. Estimates of production, shipments, and stocks of finished Portland cement, in this District and the United States, as reported by the United States Bureau of Mines: T ENTH DISTRICT Production Shipments Stocks 2,II2 August 1933...... 666 409 July 1933.......... 734 666 1,856 August 1932...... 851 802 2,013 8 Months 1933 3,981 4,270 8 Months 1932 4,310 4,411 UNITED STATES Production Shipments 8, 22 3 5,994 8,609 8,697 7,835 10,968 44,500 42,618 49,65° 54,49o Stocks 22,077 19,848 19,398 Petroleum Gross output of crude oil in the Tenth District during August, according to estimates based on the weekly figures of the American P etroleum Instit ute, totaled 25,187,000 barrels. This total, as compred to the Bureau of Mines estimates for July this year and August, 1932, reflects increases of 1.2 per cent for the month and 41.1 per cent for the year. Compared to a year ago, large increases are shown for Oklahoma, Kansas, and New Mexico. The gross production figures for August are here shown in comparison with those for July this year and August last year: *August 1933 Barrels 18,876,000 Oklahoma·--·····--Kansas .......................................... 4,087,000 910,000 Wyoming.........· - - - - Colorado.__··- - - 73, 000 1,241,000 N ew Mexico·----························· July 1933 Barrels 18,519,000 4,o73,ooo August 1932 Barrels 12,594,000 2,983,000 933,000 1,199,000 83,000 1,271,000 86,ooo 987,000 Total five states.......................... 25,187,000 Total United States____ 85,191,000 *Estimated, American Petroleum Institute. 24,879,000 84,387,000 17,849,000 66,220,000 On August '.25 purchasing companies in the mid-continent area advanced the price of crude oil Io cents per barrel and on September 8 increased quotations an additional '.25 cents. Posted prices now range from 65 cents per barrel for oil testing 25 degrees gravity, with a 2 cent advance for each additional degree, and a maximum of 97 cents for oil testing 40 degrees and above. A year ago prices ranged from 76 cents to 1,1 per barrel. Prices of all refined products advanced with crude oil. Bituminous Coal The August output of soft coal at mines in this District, as estimated from the weekly reports of the Bureau of Mines, although 24.4 per cent greater than a year ago, was otherwise smaller than for any like month in recent years. Output for the month exceeded that for July by 44.2 per cent, or somewhat more than the usual seasonal gain. Tonnage of coal mined in the six coal producing states of the District during August, with comparisons: Colorado.- -··································· Kansas ......................................... . Missour·....._ __ _ _ _ New Mexico·- - --····· - - - Oklahoma. ___ .... _ _ _ __ Wyoming.............. _ _ __ *August 1933 Tons 386,000 137,000 278,000 93,000 165,000 268,000 *J .ily 1933 Tons 205,000 97,000 195,000 80,000 95,000 248,000 August 1932 Tons 270,000 101,000 269,000 85,000 62,000 280,000 Total six states.. . 1,327,000 920,000 1,067,000 Total United States.................... 33,852,000 29,482,000 22,489,000 *Estimated from the weekly reports of the United States Bureau of Mines. Zinc and Lead Deliveries of zinc concentrates by mines in Oklahoma, Kansas, and Missouri for the four weeks ended September '.2 were almost three times as large as in the corresponding period of 1932, and lead ore shipments were over six and one-half times as large. As all ore prices were considerably higher than a year ago, values made an even tonnage. Compared to the four ore shipments increased 13.9 per increased 122.6 per cent. Tonnage and value of zinc ore the Tri-state district: Oklahoma _ _ _ _ _ _ __ Kansas.... _ _ _ _ _ _ __ Missour~·_ _ __ 4 Weeks ended Sept. 2, 4 Weeks ended Aug. 5, 4 Weeks ended Sept. 3, 35 Weeks ended Sept. 2, 35 Weeks ended Sept. 3, more favorable showing than weeks ended August 5, zinc cent and lead ore shipments and lead ore shipments from ZINC ORE Tons Value 16,327 '/, 567,757 8,694 30~,348 413 14,313 1933...... 25,434 '/, 884,418 1933...... 22,329 774,387 1932...... 8,637 162,312 1933...... 172,756 4,321,432 1932...... 98,323 1,711,II3 LEAD Tons 3,151 '/, 2,203 119 ORE Value 165,427 115,659 6,247 5,473 $287,333 2,459 129,097 849 28,385 24,236 1,064,632 15,474 546,557 Zinc ore declined $3 per ton during August, closing at $32 as against $16 in February this year and '$19 in August, 1932. Lead ore was unchanged at $52.50 per ton, or $20 above a year ago and the I 933 low. 8 Business Conditions in the United States By the Federal Reserve Board .... (DT ,.JICOff M 1'o0 IH~USTRIAL PRCDUCTIO!I 1l0 120 110 100 !JO - / '- .A. ,, ,. \ ,0 I J "'-JI"'\,. ec '- 71) '°50 120 \ '\ r- ir-J ~ :SlO 1.1.19 :i:1.) ,,;: 19J! 110 100 90 8,J 70 (,() i'i!J Index number of industrial production, adjusted for seasonal vanat1on. (1923-1925 average=100.) Latest figure, August, 93. no 110 IOO 100 90 90 eo 80 'JO 70 IO 60 IO 50 "" ..o JO 30 Indexes of factory employment and payrolls, without adjustment for seasonal variation. (1923-1925 average=100.) Latest figures, August, employment, 73.4; payrolls, 55.7. ~o >----l---~-->-----'----"-----!"0 ....___-'---_ __..__ _.___ _ . . _ _ ~ - - ~o 1q31 The general level of industrial production declined in August and the early part of September, reflecting reductions in activity of industries in which there has been a rapid rise in previous months. Employment and wage payments were larger in August than in July. 1'!32 Indexes of the United States Bureau of Labor Statistics (1926=100). Latest figures, August, farm products, 57.6; foods, 64.8; other commodities, 74.I. 1:::---t--,..,+~'""'"~=--\.-d.---,l--------l~~ -~----=-'-~~------i"oo ---i--~~-+-----t•OC'O Vvednesday figures for 12 Federal reserve banks. Latest figures are for September 20. PRODUCTION AND EMPLOYMENT: The Federal Reserve Board's seasonally adjusted index of industrial production, which had been rising rapidly for several months, declined from 100 per cent of the 1923-1925 average in July to 92 per cent in August. The principal decreases were in the primary textile industries, in flour milling, and in output of steel ingots, which declined from 59 per cent of capacity in July to 49 per cent in August. Average daily output of automobiles declined somewhat from the level of July. There were increases during the month in production of petroleum, nonferrous metals, and cigarettes and output of lumber and coal increased seasonally. During September, reports indicate further reductions in output of steel and flour; petroleum production slackened under new restrictions; and output of lumber decreased. Increases in employment between the middle of July and the middle of August, the latest date for which figures are available, were general in most lines of industry, and there were numerous increases in wage rates and reductions in working hours. Compared with the low point of last spring there has been an estimated increase of 2,200,000 in number of industrial wage workers. Value of construction contracts awarded, as reported to the F. W. Dodge Corporation, increased in August owing to awards for public works, particularly highways and bridges. Contracts for other types of construction were in smaller volume than in July. An increase of $1 ,000,000,000 in gross income of farmers for the year 1933 is indicated by estimates of the United States Department of Agriculture, primarily as a result of higher prices for certain farm products, notwithstanding small crops of grains, hay, and potatoes. DISTRIBUTION : Sales by department stores increased in August, and the Board's index, which is adjusted for seasonal variations, advanced from 71 to 75 per cent of the 1923-1925 average, the highest level since the spring of 1932. The recent increase in dollar sales reflects to a large extent advancing prices. The volume of freight shipped by rail declined slightly during August, on an average daily basis, although an increase is usual at this time of year. COMMODITY PRICES: The general average of wholesale commodity prices fluctuated within a narrow range during August and early September at a level about 17 per cent above the low point of last spring. Prices of individual commodities showed divergent movements, decreases being reported for prices of domestic agricultural products, while prices of many manufactured goods, of coal, petroleum, and other industrial raw materials, increased. During the second and third weeks of September prices of commodities in organized markets advanced considerably. Retail prices of food continued to advance . FOREIGN EXCHA GE: In the foreign exchange markets the value of the dollar in terms of the French franc declined from 75 per cent of its gold parity on August 15 to 65 per cent on September 22. BANK CREDIT: At member banks in 90 leading cities, there was a growth of $200,000,000 in net demand deposits in the four weeks ending September 13, following a decline of $800,000,000 between the middle of June and the middle of August. More than half of the recent increase reflected a return of bankers' balances to New York City banks. The banks gradually reduced their holdings of United States Government securities following an increase in the week ending August 16, when a new issue of Treasury bonds was sold, and on September 13 their holdings were in about the same volume as in early August. There was some increase in commercial loans both at member banks in New York City and in other leading cities. Member bank balances at the reserve banks continued to increase during August and the first three weeks of September, and excess reserves of member banks reached $700,000,000. This increase reflected primarily additional purchases of Government securities by the Federal reserve banks, which have averaged $35,000,000 a week since August 16. Money in circulation, whi ch usually increases at this season, has shown little change in the past month, indicating a continued return from hoards. Money rates in the open market showed a renewed decline during August and the first half of September.
@FedFRASER