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THE MONTHLY REVIEW Of Agricultural, Industrial, Trade and Financial Conditions in the Tenth Federal Reserve District FEDERAL Vol. 19 T RESERVE KANSAS C1TY, BANK Mo., HE drouth which has prevailed throughout the Tenth District is apparently broken. Rains and cooler temperatures arrived too late to benefit crops materially and ultimate yields of most crops will be the lowest of record. Corn prospects declined further in August and the crop is almost a complete failure. Fall seeding operations are progressing under more favorable conditions, the top soil being generally well supplied with moisture but the subsoil still very dry. The live stock situation is Less acute than four weeks ago. umbers have been reduced and rains have revived pastures, improved forage prospects, and relieved the water shortage. Government purchases of cattle and calves continue in the emergency drouth areas and purchases of sheep and goats started September 10. August marketings of cattle established new all-time high records, whereas marketings of hogs were unusually light and sheep normal. Hog prices advanced sharply in August and fed cattle were higher, both bringing the best returns in three years. Thirty-two department stores in the District reported the dollar volume of their August sales increased 35.5 per cent over July as compared to a normal increase of 20 per cent. Sales were 6.1 per cent above August, 1933, and the largest for the month since 1930. Wholesalers' sales increased 15.2 per cent for the month and 10.2 per cent as compared to a year ago. Retail lumber sales were slightly larger than in July and fractionally smaller than in August last year. Savings deposits have shown a steady increase throughout the year and are now 14 per cent higher than at this time last year. et demand deposits of reporting member banks show an increase of 28.9 per cent as compared to a year ago and member banks' reserve deposits with the Federal Reserve Bank of Kansas City and branches are the highest of record. Debits by banks to individual accounts show an increase of 15.8 per cent over August last year and Federal reserve bank clearings are 43.5 per cent larger. Commercial failures are the lowest since 1920. The United States Department of Agriculture's index of farm prices jumped 7 points from July to August to 87 per cent of the 1909-1914 average, whereas the index of prices paid by farmers was up 1 point to 123 per cent of the average. The ratio of prices received by farmers to prices paid now stands at 77 per cent of pre-war as against 64, 55, 61, 74, and 91, one, two, three, four, and five years ago. Higher prices for the short crops; enhanced farm inventory values, including corn held under Government seal; sales of heretofore waste crops; higher prices for hogs, cattle, and poultry and dairy products; returns from live stock liquidations; A. A. A. benefit payments under crop reduction programs; employment on Federal projects; and farm and home OF OCTOBER KANSAS CITY 1, 1934 No. 10 BUSINESS IN THE TENTH FEDERAL RESERVE DISTRICT Percentages of Increase, or Decrease (-), for August 1934 over July 1934 and August 1933 and for the first eight months of 1934 over the like period in 1933. 8 Months 1934 August 1934 Compared to · Compared to Banki ng July 1934 Aug. 1933 8 Months 1933 Payments by check, 29 ci ties.................. - 8.6 15.8 17.8 Federal Reserve Bank clearings.............. - 2..3 43.5 44.o Business failures, number........................ 18.9 - 47.6 - 56.9 Business failures, liabilities...................... 7.7 -82..9 -63.1 Loans, 52. member banks·-----················· - 0.4 1.0 Investments, 52 member banks.............. 2.5 19.6 Tet demand deposits, 52 member banks 3.5 28.9 Time deposits, 52 member banks·--······· 0.5 I.I Sa,·ings deposits, 45 selected banks·--··· 0.7 14.0 Savings accounts, 45 selected banks...... 0.5 5.3 Distribution I0,2 Wholesalers' sales, 5 lines combined ..... . 6.I Retailers' sales, 32 department stores._. 2.2 Lumber sales, I 57 retail yards ............... . Life insurance, written·--·············--·········· - 3. 7 Construction Building contracts awarded, value. ___ ··· 190.8 Residential contracts awarded, value.... 23.8 Building permits in 17 ci ties, value........ -37.4 Production Flour._......................................................... - 4.7 7.1 - 12.0 6.9 Crude petroleum·-····································· -2.9 Soft coal_ ................................................... - 8.I 0.7 33· 2 1 7-5 1 9·5 Zinc ore (shipped) Tri-State district .... 106.3 - 6.6 Lead ore (shipped) Tri-State district ·-· -49.4 93.o 20.0 33.3 Cement.----································ - 6.8 Grain receipts, 5 markets Wheat.......................................................... -71.7 20.3 - 2 4.5 Corn............................................................ 110.2 1.7 550.S 108.9 - 44.9 Oats.--··-·········--···········--·····················--···--· 81. 1 Live stock receipts, 6 markets Cattle.............................................................. 51.2 65.4 195.8 Calves.......................................................... 66.8 132.5 455-4 - 8.1 Hogs............................................................ -40.8 -5 2 .4 - 2.4 Sheep.......................................................... 19.9 4.9 Horses and mules...................................... 28. 1 65.9 53.7 Meat packing, 6 markets Cattle......................................................... . 49.0 93· 1 372.2 147.9 Calves·-······----····························· - 11.9 Hogs............................................................ -44.1 -55.8 Sheep.......................................................... 3.6 - 4.0 - 2.9 mortgage relief through Government agencies are the principal factors underlying sustained purchasing power in this District. Banking and Credit MEMBER BANK OPERATIO S: The demand for credit, at fifty-two reporting member banks in selected cities of the Tenth District, declined slightly during the four weeks' period ended September 12. However, the total of loans and discounts reported for that date was 1 per cent above that of September 13, 1933. Loans secured by stocks and bonds and Thia Copy Released For Publication In Afternoon Newspapers, September 28. THE MONTHLY REVIEW "all other" loans shared about equally in the decline for the month and the increase for the year. The banks increased their investment holdings 2.5 per cent in four weeks and 19.6 per cent in fifty-two weeks and present holdings are, with the exception of last March, the highest of record. Investments in other bonds, stocks, and securities showed the larger increase for the four weeks' period, whereas investments in United States Government securities made the larger gain for the year. The total of loans, discounts, and investments held by these banks is now larger than at any time since March 16, 1932. Net demand deposits again increased, advancing 3.5 per cent in four weeks to a total of '1,456,228,000 on September 12, on which date they were higher than at any time since July 1, 1931, and 28.9 per cent larger than one year earlier. Government financing, including allotment payments, and heavy marketings of corn and cattle were partially accountable for the gain during the four weeks' period. Time deposits have shown little change the past eighteen months but Government deposits are up 31.2 per cent for the year. Principal resource and liability items of fifty-two reporting member banks as of September 12 are shown in the following table with comparisons: Loans and investmen ts-total.. Loans and discounts-total........ Secured by stocks and bonds All other loans and discounts Investments- totaL_.,............... U.S. securities........................ Other bonds, stks., and sec .._. Reserve with F. R. banlc ......... Net demand deposits.................. Time deposits.............................. Government deposits.................. Sept. 12, 1934 $568,674,000 214,786,000 58,01 2,000 156,774,000 353,888,000 231,861,000 122,027,000 91,207,000 456,228,000 166,097,000 19,598,000 Aug. 15, 1934 Sept. 13, 1933 $560,752,000 $508,493,000 215,606,000 212,672,000 58,305,000 57,059,000 157,301,000 155,613,000 345,146,000 295,821 ,ooo 230,422,000 187,870,000 II4,724,ooo 107,951,000 92,293,000 62,740,000 440,946,000 353,919,000 165,298,000 164,264,000 23,013,000 14,939,000 RESERVE BANK OPERATIONS: The weekly condition statements of the Federal Reserve Bank of Kansas City and branches showed slight declines between August 15 and September 12 in the amounts of bills rediscounted for member banks, bills purchased in the open market, and United States Government securities held. Advances for industrial purposes, made in conformity with recent provisions for such loans, increased from '$3,200 on August 15 to 'l,84,792 on September 12. Compared to September 13, 1933, loans to member banks show a reduction of i4,046,239 and purchases of United States securities a gain of $19,936,500. The enlarged holdings of Government securities accounted for an increase since September 13, 1933, of 20.6 per cent in the total of bills and securities held by this bank and branches. Member banks' reserve deposits increased 3 per cent in four weeks, establishing a new all-time high of '1, 158,064,777 on September 12, $52,036,742 higher than one year earlier. Federal reserve note circulation was up 1.9 per cent in four weeks and 4.7 per cent in fifty-two weeks. The following table shows the principal items contained in the statement as of September 12, with comparative figures for August 15, 1934, and September 13, 1933: Sept. 12, 1934 Aug. 15, 1934 Sept. 13, 1933 Total reserves.............................. $187,559,012 $180,867,700 $149,813,270 Bills discounted............................ 151,963 15 5,42 1 4,198,202 Bills purchased............................ 142,220 142,276 177,445 Industri al advances.................... 84,792 3,200 ................... . U. S. securities............................ 92,944,200 93,144,200 73,007,700 Total bills and securiti es............ 93,323,175 93,445,097 77,383,347 Total resources............................ 315,007,804 307,953,908 255,653,858 F. R. notes in circulation.......... 114,018,910 u1,921,1Io 108,907,135 F. R. bank notes in cir.- net.... .................... .................... 966,900 .M ember banks' reserve deposits 158,064,777 153,527,907 106,ch8,035 The discount rate of the Federal Reserve Bank of Kansas City, on all classes of paper and maturities, remains unchanged at 3 per cent. Reserve Bank Clearings During the month of August the Federal Reserve Bank of Kansas City and branches at Denver, Oklahoma City, and Omaha handled 4,860,092 items aggregating $818,078,000 for collection. These totals represent a 2.2 per cent increase in the number of items handled and a 2.3 per cent decrease in dollars as compared to July. Compared with the record for August, 1933, items handled showed an increase of 15 per cent and the dollar amount an increase of 43.5 per cent. The figures for July, August, and the first eight months of this year and last follow: AMOUNT ITEMS August ............. . July................... . Eight mon ths... . 1934 4,860,092 4,756,091 40,710,618 ·1933 4,226,096 4,323,092 31,599,766 1934 $ 8 l 8,078,000 837,174,000 6,015,661,000 1933 $ 570,082,000 (. 34,69 I ,ooo 4, l 77 ,41 2,00◊ Bank Debits Banks in twenty-nine leading cities of the District reported debits to individual accounts, during the five weeks' period ended September 5, as 8.6 per cent smaller than in the five weeks' period ended August I this year, but 15.8 per cent larger than in the five weeks' period ended September 6 last year. Cumulative totals for the year to Septem ber 5 show an in.crease over' the like period las t year of 17.8 per cent. PAYMENTS BY CHECK FIVE WEEKS ENDED Albuquerque, N. M..................... Atchison, Kans ...•--····················· Bartlesville, Okla ..-.................... . Casper, Wyo.·--··························· Cheyenne, Wyo .......................... . Colorado Springs, Colo .... - ........ Denver, Colo .............................. . Enid, Okla ................................... Fremont, Nebr ............................ . Grand Junction, Colo ................ . Guthrie, Okla .............................. . Hutchinson, Kans...................... . Independence, Kans .................. . Joplin, Mo .................................. . Kansas City, Kans .................... . Kansas City, Mo ......................... Lawrence, Kans .......................... . Lincoln, Nebr.·--························· Muskogee, Okla .......................... . 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, 35 weeks ......... . U. S. 267 ci ties, 5 weeks .......... Sept. 5, 1934 $ 9,61 2,000 3,450,000 21,385,000 4,28 8,000 6,85 1 000 13,254,000 146,485,000 11 ,34z,ooo 2,608,000 2,699,000 1,266,000 l 5,482,000 4,383,000 7,651,000 10,445,oco 303,418,000 3,029,000 22,706,000 6,104,000 75,5 12,000 2,196,000 139,297,000 3, 1 35,000 I 5,1 76,000 8,609,000 28,829,000 15,414,000 89,780,000 40,605,000 Sept. 6, 1933 'f, 6,183,000 3,232,000 '$ '/, l ,0l 5,011,000 7,II9,613,ooo 29,852,359,000 P er cent Change 55. 5 6. 7 5.6 '10,255,000 4,717,coo - 9.1 3,597,000 90.5 II,483,coo 120,943,000 9,045,000 1,974,000 1,454,000 1,275,000 II,680,000 4,020,000 1 5·4 2I.l 25.4 32. 1 85.6 - 0.7 7,705,00◊ 9,005,000 28 1,438,000 2,869,000 22,208,000 5,643,000 61,778,000 2,282,000 120,725,000 2,935,000 l I,5JJ,000 7,224,000 27,5 17,000 II,901,000 69,745,000 32,120,000 32.5 9.0 0.7 16.0 7.8 5.6 2.2 8.2 '12.2 - 3.8 1 5•4 6. 8 31.6 19.2 4.8 2 9·5 28.7 26.4 - 876,486,000 6,042,654,000 29,115,838,000 Savings For the tenth consecutive month savings deposits, at fortyfive selected banks in leading cities of the District, increased during August. The gain for the month amounted to 0.7 per cent, with savings deposits as of September 1 reported as 14 per cent larger than on the same date last year. The banks also reported gains of 0.5 per cent for the month and 5.3 per cent for the year in the number of savings accounts. Savings deposits and savings accounts at forty-five banks: September 1, 1934.................................. August 1, 1934........................................ September 1, 1933.................................. Savings Accounts 39 1,408 389,465 371,837 Savings Deposits 'f,II4,194,608 11 3,385,59 2 100,206,469 THE MONTHLY REVIEW Stores Reporting Kansas City........ 4 D enver.................. 4 Okbhom a City.... 3 Tulsa .................... 3 Wichita ................ 3 Other cities.......... 15 3 RETAIL TRADE AT 31 DEPARTMENT STORES IN THE TENTH FEDERAL RESERVE DISTRICT STOCKS (RETAIL) SALES ACCOUNTS RECEIVABLE AMOUNTS COLLECTED STOCK TURNOVER Year 1934 Aug. 31, 1934 Aug. 31, 1934 Aug. 1934 Aug. 1934 August Year compared to compared to compared to compared to compared ~o 1 1 1 1 Aug.31,1933 July 1934 Aug. 1933 Aug. 1 933 Year 1933J July 31,1934 Aug.31,1933 1934 933 934 1933 July 3 , 934 .18 - 18.1 11.0 1.0 Even -0.4 12.4 .19 6.4 l4. 7 1.56 1.38 8.o - 0.3 .31 2.23 2.07 7.2 3.2 I 5.1 10.7 .34 - 7.5 9.5 -II.I .28 2.66 6.1 22.I -26.1 2.19 13.1 17.6 9.6 .33 1.5 1 1.2 -20.l 15-4 .32 .27 2.90 2.96 - 2.3 6. 7 8.5 7.1 - 7.4 2.2 21.8 .30 .32 2.07 1.97 - 1.4 - 27.0 19.6 8.7 7.7 7.9 1.80 0.2 6.2 13.8 .23 .23 1.89 10.3 17.0 14.2 1.5 4.5 Total..._................. 32 6.1 16.7 7.2 - 2.9 .26 .25 2.02 1.85 4.5 1.0 - 15.6 NOTE: P ercentage of collection s in August on open accounts July 31, all stores reporting 38.3. Collections same month last year 35.1. Failures There were 44 business failures, with liabilities aggregating $517,623 in the Tenth Federal Reserve District during August. These totals represent the least number of failures and the smallest amount of liabilities reported for any August since 1920. The August figures exceeded the July totals both in the number of defaults and the amount of liabilities involved. Business failures in the Tenth District and the United States as reported by Dun and Bradstreet, Inc.: August 1934--·-························· July 1934.................................. August 1933-----·---···--------------- T ENTH DISTRICT umber Liabiliti es 44 1, 51 7,623 37 480,641 84 3,019,247 U NITED Number 929 $ 91 2 1,472 STATES Liabilities 18,459,903 19,325,517 42,776,049 R etail T rade Trade at thirty-two reporting department stores, located throughout the Tenth District, improved with the mid-August passing of the extremely hot weather, which was a deterrent to business, the termination of summer vacations, and the opening of schools. August sales, in dollars, were 35.5 per cent larger than in July. This increase over July sales, although not quite as large as a year ago, compares favorably with a normal increase of 20 per cent. Sales were 6.1 per cent larger than a year ago, 29 per cent larger than two years ago, and about equal to the August, 1931, volume. During the first eight months of the year, sales were, for the first time in five years, larger than in the preceding year, increasing 16. 7 per cent over the like period in 1933. Inventories were enlarged 7.2 per cent, or about the usual amount during August, but stocks as of August 31 ·were 2.9 per cent smaller than one year earlier. Collections during August on open accounts averaged 38.3 per cent of amounts outstanding July 31 as compared to collection percentages of 40 per cent for July this year and 35.1 per cent for August last year. Collections on installment accounts, as reported by sixteen stores, amounted to 14.1 per cent of receivables in August, 14.2 per cent in July, and 14.9 per cent in August, 1933. Wholesale Trade Sales of merchandise by reporting wholesale firms in the Tenth District, engaged in five lines of distribution, were 15.2 per cent larger in August than in July. The August reports, by separate lines, indicate sizable increases in sales of dry goods, groceries, and furniture, a moderate increase in sales of drugs, and a small decline in sales of hardware. Stores R~porting Dry goods....... ----------·---- 6 Groceries ........................ 5 Hardware--·-·----····----······ 8 Furniture·-----·----------···--· 5 Drugs .............................. 7 I 1.2 August sales for the five lines combined were larger this year than in any year since 1930, the dollar volume increasing 10.2 per cent as compared to August, 1933, and 24.5 per cent as compared to August, 1932. The accumulated total of sales for the year to September I was, due to the heavy gains reported for the early months of the year, 20.2 per cent above the total reported for the corresponding period a year ago. Wholesalers of dry goods, groceries, hardware, and drugs reported their August sales as 6.5, 17.6, 1.7, and 20.2 per cent, respectively, above a year ago but furniture sales, following the enormous increase of August, 1933, over August, 1932, fell off 21.4 per cent. All lines, except furniture with an increase of 2.3 per cent, reported a slight reduction in inventory values during the month. Month-end stocks of groceries were 4.2 per cent smaller than a year ago but inventories of dry goods were 13.2, hardware 15.3, furniture 35.7, and drugs 14.3 per cent larger. Lumber Sales of lumber at 157 retail yards in c1t1es and towns of this District were slightly heavier for August than for July, but fractionally below the volume reported for August, 1933. Dollar sales of all materials, however, were 7.7 per cent larger than in July and 20.8 per cent larger than a year ago. Lumber stocks as of August 31 were smaller than one month or one year earlier. Collections during August amounted to 32.4 per cent of accounts receivable on July 31. This ratio compares with collection percentages of 3 5.1 per cent reported for July this year and 24.2 per cent for August, 1933. August business is herewith compared with the preceding month and the same month last year in percentages of increase or decrease: Sales of lumber, board feet .........·---------------····--· Sales of all materials, dollars ......... ----------·--··--·· Stocks of lumber, board feet...----········--·····--··---· Outstandings, end of month--···-----------··--······--·· August 1934 Compared to July 1934 August 1933 2.2 - 0.9 7.7 20.8 - 0.7 - 6.7 4.0 - 8.7 According to reports to the National Lumber Manufacturers Association, lumber production in the United States for the week ended September I fell 15 per cent short of output for the same week last year. Shipments were 4 per cent smaller and orders booked 11 per cent larger than a y~ar ago. WHOLESALE TRADE IN THE TENTH FEDERAL RESERVE DISTRICT SALES OUTSTANDINGS AMO UNTS COLLECTED Aug. 1934 compared to Aug. 31, 1934 compared to Aug. 1934 compared to Aug. 1933 July 31, 1934 Aug. 31, 1933 J uly 1934 Aug. 1933 July 1934 - 1.0 6.5 17.6 - 13.4 36.7 6.9 20.0 - 18.6 18.1 17.6 20.7 7.1 - 3.1 - 13.6 - 2.3 - 5.6 12.7 1.7 27·7 - 21.4 - 0.1 -24.'2 5.4 - 3.5 20.2 -0.2 - 6.8 - 1.2 5.0 15.6 STOCKS Aug. 31, 1934 compared to July 31, 1934 Aug. 31, 1933 - 0.4 13.2 - 2.5 -4.2 15-3 - 5.2 2.3 35.7 -o.6 14.3 THE MONTHLY REVIEW Building Flour Milling Construction activity continues to lag, building departments in seventeen cities of the District issuing comparatively few permits in August, with a majority of those being for alterations and repairs. Estimated expenditures declined somewhat for the month and, although 22.8 per cent larger than a year ago, were equal to but 16 per cent of the August average of the past ten years. Operating at 57.6 per cent of full-time capacity, mills in the Tenth District produced 1,848,996 barrels of flour in August. Output was 7.1 per cent above the unusually low July total and 24.8 per cent larger than in August, 1933. Excluding August, 1933, production was the lightest for the month since 192.5. Grindings for the calendar :rear to September 1 totaled 14,549,945 barrels of flour this year and 15,2.66,507 barrels last year. Production figures, as estimated from the weekly reports of southwestern mills to the Northwestern Miller, are shown in the following table: BUILDING _PERMITS IN TENTH DISTRICT CITIES PERMITS ESTIMATED CosT 1933 1934 1934 1933 '/, 84,467 Albuquerque, N. M .·---···· ........ $ 30,288 69 55 28 Cheyenne, Wyo........................... 14,676 40 3,867 Colorado Springs, Colo.. _........... 21 13,800 30 10,325 Denver, Colo............................... 207,825 276 184,855 314 20 16 16,010 Joplin, Mo ................................... 29,250 Kansas City, Kans ..................... 7,000 10,145 27 25 218 126 190,000 129,900 Kansas City, Mo.·-····················· Lincoln, Nebr 120 48,366 28,683. 55 100,180 61 Oklahoma City, Okla ................. 52,345 97 Omaha, Nebr... 60,734 69 93,545 74 12,252 3,870 51 27 Pueblo, Colo.·-····························· 1,210 12 Salina, Kans ................................. 14,225 5 II 3,880 Shawnee, Okla ............................. 212,500 9 21 13,660 St. Joseph, Mo .._......................... 24,805 17 48,93o 48 35,33° Topeka, Kans.·--························· 54 Tulsa, Oki 66 62,015 59,100 52 14,680 Wichita, Kans ............................. 50,106 55 55 Total 17 cities, August·--··········· Eight month~- - - - - 1,222 8,353 1,002 7,604 '/,1,032,264 9,013,313 '/, 840,560 August 1934·-··· July 1934.......... August 1933·-··· 8 Mos. 1934..... . 8 Mos. 1933 ..... . UNITED STATES Residential Total '/, 18,641,000 '/, 120,244,500 19,879,100 I 19,698,800 21,937,000 106,131,100 170,424,300 1,095,553,800 I 58,776,100 621,575,800 Life Insurance Sales of new paid-for ordinary life insurance in the seven states of the District, as reported to the Life Insurance Research Bureau, declined 3.7 per cent from July to August and 1.4 per cent as compared to August, 1933. Combined totals for the eight months, however, showed an increase of 2.0.8 per cent for this year over last. Life insurance sales by states as reported by the Life Insurance Research Bureau: August 1934 4, 174,000 5,182,000 14,849,000 3,880,000 715,000 5,190,000 718,000 Colorado·--··································· Kansas .... ···········-···---Missour Nebraska .. New Mexico·---··························· Oklahoma. ____ .... Wyoming............ $ Seven states·-······························· United States._ '/, 34,708,000 483,705,000 '/, July 1934 4,381,000 5,062,000 July 1934 Barrels 93,057 461,114 105,078 150,797 109,473 806,322 Aug. 1933 Barrels 106,138 39 1, 237 78,148 125,698 146,759 634,124 TotaL....................................................... 1,848,996 1,725,841 1,482,1 04 *United States..•-···············-··--···-··--········· 5,402,781 4,686,471 4,534,059 *Represents about 60 per cent of the total output in the United States. A market break of approximately 15 cents per barrel the second week of August encouraged flour buying and several large lots were sold. Prices held steady thereafter and sales the closing week of the month were largely on a hand-to-mouth basis, small and medium sized bakers being the chief buyers. 5,585,629 According to statistics compiled by the F. W. Dodge Corporation, building contracts awarded in the Tenth District during August totaled $10,746,919, or more than in any month since last December or any August since 1930. Awards for residential contruction, however, failed to show a corresponding improvement, being 23.8 per cent larger for the month but falling 2.8 .4 per cent short of the August, 1933, expenditures. Residential and total building contracts awarded as reported by the F. W. Dodge Corporation: TENTH DISTRICT Residential Total '/, 552,269 '/,10,746,919 445,969 3,695,353 771,241 4,819,177 6,129,689 48,885,347 6,116,418 28,~,217 Atchison .................................................... Kansas City............................................. . Omaha ..................................................... . Salina ....................................................... . Wichita.--·········----······-············· Outside..................................................... . Aug. 1934 Barrels III,163 453,249 u6,6o8 161;287 130,087 876,602 August 1933 1, 3,595,000 4,798,ooo 16,244,000 4,028,000 648,000 4,99°,000 689,000 15,095,000 5,956,ooo 1, 36,042,000 498,o97,ooo 1, 35,203,000 481,833,000 546,000 4,435,000 778,000 Grain Marketing Unprecedentedly heavy marketings of corn featured the August grain trade. Receipts at the five principal markets of the District totaled 13,644,300 bushels as compared with a ten-year average volume of 3,465,000 bushels. Marketings were, excepting January, 192.8, with a total of 14,583,400 bushels, the largest for any man th in over fifteen years of record. Most of the corn was that released from Government sealed cribs and was purchased by elevator interests. August receipts of wheat were, as usual, the smallest since harvest and, reflecting crop yields, exceeded last year's arrivals by 2.0.3 per cent but were otherwise the smallest for the month in recent years, equal to but 2.6.7 per cent of the normal volume. Marketings of oats and rye w~re heavier than in either July this year or August last year but fell over 50 per cent short of the 1924-33 average for August. Receipts of barley and kafir were also comparatively light. Receipts of grain at the five principal market centers of the District: Hutchinson ... Kansas City .. Omaha.......... St. Joseph.__ . Wichita.-- ..... Wheat Bushels 1,401,300 3,507,200 1,232,000 716,800 1,359,000 Corn Bushels 20,000 6,219,000 5,762,400 1,528,500 114,400 Oats Bushels Rye Bushels 1,200 Barley Bushels 1,250 154,000 33,000 35,000 25,500 56,000 578,000 362,000 9,000 Kafir Bushels 16,900 63,000 6,400 1,750 2,600 2,6oo --- --- --- --- August 1934.. 8,216,300 13,644,300 1,103,000 July 1934...... 29,080,550 6,491,250 609,000 August 1933.. 6,828,400 2,096,500 528,000 8 Mos. 1934.. 57,936,150 34,727,000 4,541,000 8 Mos. 1933.. 76,741,400 34,161,550 8,248,000 97,300 68,200 93,900 410,300 676,200 65,400 82,500 116,100 102,550 41,600 379,500 1,179,700 627,850 9H,200 38,550 Grain prices worked higher during August, all classes except wheat closing at or near the month's best price. Cash wheat reached $I.II per bushel on August IO and closed at $1.06 for a net gain of 4 cents per bushel. Corn closed I 1, oats 8, rye 15, and barley 22 cents per bushel higher for the month. Closing prices were well above a year ago and much higher than two years ago. Most grains are now on an import basis. THE MONTHLY REVIEW Crops The drouth, which continued over the Tenth District the greater part of August, is now broken in all but a few scattered areas. Rains and lower temperatures arrived too late to benefit corn, cotton, grain sorghums, white potatoes, and fruits, and prospective yields of these crops declined further during the month. Hay crops, sugar beets, broom corn, and sweet potatoes showed some improvement and the outlook for dry edible beans was unchanged between August I and September I. Most crops are virtually matured and ultimate yields in the Tenth District for this, the most disastrous crop season of record, will approximate the September I estimates of the Department of Agriculture. Crops in the United States and the seven states, whose areas or parts thereof comprise the Tenth District, as estimated by the United States Department of Agriculture. Production is in thousands of units, ooo omitted: 5 HAY AND FORAGE: Hay prospects showed a slight improvement during August and, as a result of the recent rains and cooler weather, prospects for late cuttings of alfalfa and late planted emergency crops of cane, millet, and sudan grass are much better. Grain sorghums, not damaged beyond recovery, have also made good progress with maturity depending on late frosts. Farmers have harvested a large quantity of weed forage, mainly Russian thistle and wild sunflower, as supplementary feed. The District will have about a half crop of hay and grain sorghums. COTTON: Weather conditions the first three weeks of August were unfavorable for Oklahoma cotton and further deterioration was rapid. Plants failed to make their normal growth, bolls opened prematurely, and the shedding of blooms, squares, and small bolls was heavy. The September 1 condition of Oklahoma cotton was reported at 29 per cent of normal, or 13 points lower than on August I and the lowest condition ever reported for the state. Late August and early September rains supplied ample soil moisture and caused plants to make second growth and start blooming again. Cotton in Missouri declined II points and in New Mexico 8 points during August. Picking and ginning has commenced in states. An unusually large percentage of the crop ginned so far is short staple. The following t able shows the acreage left for harvest in September this year and last, and estimated yields in the three states and the United States, thousands omitted: S!!!VEN STATES U NITED STATES Sept. 1 Final 5-Yr.Av. Sept. 1 Final 5-Yr.Av• 1934 1927-31 1927-31 1934 1933 1933 Winter wheat, bu. 156,837 137,47 1 332,227 400,522 351,608 632,061 Spring wheat, bu. 10,461 8,508 3,673 92,763 176,370 254,298 All wheat, bu ... 16o,510 145,979 342,688 493,285 527,978 886,3'59 , Corn, bu ............... 79,374 503,516 602,743 1,484,602 2,343,8 83 2,516,307 Oats, bu.·---········· 63,745 l 11,674 171,730 545,87o 731,524 1,1 86,956 Rye, bu ................. 21,236 1,252 2,203 17,261 4o,95o 4,575 21,42 1 9,884 Barley, bu.·--······· 36,948 122,963 156,988 27o,444 Gr. sorghums, bu. 17,256 87,884 4o,3 13 53,9 12 37, 29° 93,955 Tame hay, tons.... I 1,829 6,946 72,250 10,972 50,727 65,983 Wild hay, tons... 3,261 4,286 11,368 1,919 8,633 5,287 AcREAGE Fo R H ARVEST INDICATED P RO DUCTION (Bales) Broom corn, tons .. 14 32 25 29 39 47 Sept. 1 Sept. 1 Sept. r Aug. 1 F ina l Sugar beets, tons. 2,804 4,288 II,030 7,468 4,269 7,854 1934 1933 1934 1933 1934 1,613 14,666 676 1,362 Cotton, bales·-····· 9,252 13,o47 2 ,539 2 ,93 2 1,266 Oklahom a..·-················· White potatoes,bu. 20,574 42 4 5o9 4o,477 337, 14 1 3 2o,353 365,556 33,0 5° 92 84 New Mexico·-··-··········· 77 83 Sweet potatoes,bu. 1,490 2,644 62,386 94 2,839 64,176 65,073 M issouri ........................ 2 53 288 337 175 176 Dry beans, bags .. 12,280 2,21 I 11 ,594 2,465 9o9 9,o94 Tobacco, lbs ......... 7,412 5,185 1,078,117 1,385,107 1,470,556 3,465 4,838 7,072 Apples, bu.·--······· 7,7°3 111,703 142,981 156,303 Three states.-............... 1,61 3 3,353 2,51 2 2,368 921 56,282 Peaches, bu.·--····· 45,687 44,692 United States... - .......... . 30,036 13,047 602 22 21,192 1,153 23,134 Pears, bu.·-··········· 774 ,334 Grapes, tons.____ . 20 18 1,690 1,910 13 2,277 all Frequent and sizable rains the past three weeks have been quite general, and ranges and pastures have greened up considerably. Late cuttings of hay are now in prospect and yields of forage crops will exceed earlier expectations. Surface soil moisture supplies are, on the whole, adequate for fall seeding operations which are advancing rapidly, with much small grain being planted for winter pasture. There is still a heavy deficiency of subsoil moisture. CORN: Tenth District corn prospects, which declined from 306,735,000 bushels on July I to 91,168,000 bushels on August 1, were reduced to 58,929,000 bushels by September 1. The present crop is less than 15 per cent of normal and the sma1lest in history. Very little of the crop will be harvested for grain, a large part being cut for silage and fodder, and the balance grazed or completely abandoned. Corn production, by states, in thousands of bushels: Colorado.__ ······· Kansas_............ Missouri ............ Nebraska...•...... New Mexico. __ . Oklahoma. ___ ··· Wyoming.......... Seven states.--. Tenth District.. United States.- Estimated Sept 1, 1934 Aug. 3,606 10,492 24,375 29,936 1,712 8,728 r, 1934 Final 1933 22,044 80,431 52 5 4,808 15,738 34,125 51,318 1,605 10,910 875 234,698 3,33 2 19,485 2,080 79,374 58,9 29 1,484,6o2 11 9,379 91,168 1,6o7,108 389,334 2,343,883 141,446 503,516 5-Yr.AY. 1927-31 24,119 137,700 150,699 230,002 3,747 53,843 2,633 602,743 479,018 2,516,307 FRUITS: Colorado has just completed picking a record peach crop and shipments were considerably in excess of any previous year. The Oklahoma crop was also above the average. Apple harvest has started in all states, New Mexico reporting an excellent crop, and Colorado a good crop. With the above exceptions, fruit conditions are generally below last year or normal, the hot, dry weather causing serious deterioration. POTATOES: The outlook for white potatoes in this District has declined approximately 9,000,000 bushels since July 1. The farm crop is generally a failure and the total crop will be very short, although favorable weather the balance of the season may enlarge yields. Irrigated potatoes in the Kearney district of Nebraska will yield well, but lack of irrigation water in Colorado and Wyoming resulted in serious injury during August. Sweet potatoes have been greatly improved by recent rains. OTHER CROPS: Dry beans have suffered serious damage from the drouth but a moderate crop is being secured in most irrigated sections. Sugar beets improved 13.2 per cent during August and the irrigated crop is good, but Nebraska reports a considerable portion of the acreage abandoned. In Missouri, mid-season prospects for tobacco were the poorest in many years as the condition was but 32. per cent of normal as compared to an average of 81 per cent. Production will be more than 50 per cent under last year, due in part to the tobacco reduction program. Broom corn in Oklahoma, Kansas, New Mexico, and Colorado has improved of late and will make about a half crop. 6 THE MONTHLY REVIEW Live Stock and the Blue Stem pastures of Kansas have shown remarkable Drouth liquidation and Government relief purchases swelled improvement of late and many of the remaining cattle will receipts of cattle and c·alves at the six principal live stock be grazed till frost. In an effort to preserve the better breedmarkets of the Tenth District to all-time record totals in ing herds, registered cattle are now being purchased by the August. Excluding Government cattle, receipts of commer- Government at a much higher scale than common kinds. cial cattle were somewhat larger than the liberal offerings of Total Government purchases of cattle and calves now exceed August, 1933. Marketings of hogs were, with two exceptions, five million head. Losses of sheep and lambs are confined to the most severe November, 1932, and September, 1927, the lightest for any month since September, 1921, and were in sharp contrast drouth areas, conditions being particularly bad in northeastern to the heavy receipts of a year ago, occasioned by Govern- Wyoming, southeastern Colorado, and eastern New Mexico. ment purchases of pigs and sows. Supplies of sheep and lambs Lambs, except those in the higher ranges, are light, and marketat these markets increased 19.9 per cent for the month, 4.9 ings are early. Inquiry for western feeding lambs broadened per cent as compared to August, 1933, and were 6 per cent toward the middle of September and the sales volume increased. in excess of normal. Contract prices ranged from 1+50 to $5.00 per hundredweight Top prices for cattle and hogs reached the highest levels in for early October delivery mainly to northern Colorado feed three years. Cattle prices, which were steady the forepart of lots. Numerous share feeding contracts with corn belt feeders the month, advanced the latter part, all classes closing 50 cents were completed. Under the Government's sheep and goat to $1 per hundredweight net higher. Finished beeves and good buying program, which commenced September IO, flockmasters yearlings were especially scarce but stockers and feeders and are receiving $2 per head for ewes a year old and older and westerns were more plentiful than usual at this season. Hog $1.40 per head for fem ale goats. Returns are divided equally trading was active throughout the month at phenomenally between the owner and the lien holder. Tentative plans call higher prices. Light receipts and a broad eastern demand were for the purchase of between five and six million head of sheep, strengthening influences, and closing prices were almost 1,3 with a much larger number listed for sale. Purchases being per hundredweight higher than at the end of July. Genetal confin ed to ewes one year old and older, ewe lambs will be quality of offerings was poor but improved toward the close. held for replacement purposes. Prices broke sharply the first week of September but rallied rv1eat P eking somewhat the second week. Fed lambs, which opened higher, closed weak, or about 25 cents below the July close. Yearling The slaughter of Government owned cattle and calves largely weathers declined with lambs, but breeding ewes advanced. accounted for the huge increase in operations during August Feeders, although in liberal supply, met with a good demand, this year over August, 1933, in the beef divisions of Tenth closing 25 cents to 35 cents higher for the month. District meat packing establishments, and as a result compariStockmen throughout the District are faced with a critical sons are not indicative of actual commercial supplies. More shortage of feed and are making every effort to utilize all avail- cattle and calves were slaughtered at the six markets of the able supplies. Much wheat, rye, and barley is being seeded District during August than in any previous month of record. for winter pasture and all roughage is being conserved. The With supplies light, packers' purchases of hogs at the six total supply of feed is the lowest of record and prices have markets, including direct shipments, declined 44.1 per cent as risen to prohibitive levels. Ranges and pastures, although revived somewhat by recent ·rains, are furnishing· little feed compared to July and 55.8 per cent as compared to August, and live stock in general is entering the fall in below normal 1933, and were the lightest for any month since August, 1931. flesh. Water supplies have been replenished to a considerable August, 1933, totals included Government owned pigs and sows purchased under the pig slaughter campaign which started extent but many areas still report a shortage. Cattle on western ranges held their own in August but the l ate in the month. Packets' purchases of sheep and lambs showed a slight incondition of sheep and lambs declined 3 points and is now the lowest of record·. On September I the condition of cattle crease for the month but were 2.9 per cent under a year ago, was placed at 68 per cent of normal and that of sheep at 73 14 per cent below the ten-year August average, and the per cent as compared to the ten-year averages of 87.4 and 89.9 smallest for the month since 1925. Contracts have been let for the per cent, respectively. Many cattle have been removed from slaughter and canning of sheep and goats purchased under the the most severe drouth areas throu·g h Government purchases Government program launched September IO. and heavy losses have thereby been prevented. Calves have The August report of Federally inspected slaughter of meat failed to · make the usual gains and the supply of grass fat animals in the United States marks the seventh successive decattle has been reduced. The Osage pastures of Oklahoma crease in the slaughter of hogs and sheep as compared to the Kansas City __ __ ____ ______ Omaha _______ ___________ _____ _ St. Joseph __ __ ______________ Denver_____________ ______ _____ Oklahoma City ____ _____ _ Wichita ________ _____ ___ ___ ___ Cattle 44'1,633 '144,7 13 l 12,399 100,965 I II,088 II5,843 August 1934-------------- 1,1'17,641 745,9 16 August 1933 ______________ 381,196 Eight months 1934---- 4,049, 289 Eight months 1933 ____ 2,447,76 2 •Includes 90,452 hogs shipped July 1934-------------------- AUGUST MOVEMENT OF UVE STOCK IN THE TENTH DISTRICT RECEIPTS STOCKERS AND FEEDERS PURCHA SED FOR SLAUCHTER Sheep Calves Hogs Sheep Cattle Calves Hogs Sheep Cattle Hogs Calves 133,0 '17 •170,090 90,701 166,397 'lo,447 9,883 14,769 78,768 *145,399 163,955 7°,5 25 1,800 210,675 129,466 172,894 76,683 129,107 59,288 n5,856 5S.695 3,049 34,535 27,599 II,186 80,780 68,504 27,180 78,240 97,988 89,565 4o7 35,338 3, 109 23,615 1,277 l 8,889 689 38,578 31,383 13,434 34,378 348,355 44,574 35,44° 19,634 28,700 32,119 4,874 '16,935 5,653 55,0 31 1 4,826 25,600 14,381 4,4o9 8,990 'l'l,754 33,54 534,842 758,198 3°5,1 77 632,600 9o'l,897 182,979 722,858 54,946 1,124,245 822,213 6,273,972 5,074,689 353,7 1 5 6,823,851 5,i99,410 direct to packers' yards. :294,021 168,889 70,962 757, 19'1 422,623 25,180 11,465 11,862 82,643 72,780 l l 5,481 5,081 6,595 77,075 75, 164 137,016 75,48'2 144,617 516,861 509,422 47 2,357 378,4 14 244,622 2,163,5 54 1,452,439 303,.129 4:2o,567 187,996 292,638 140,423 75 2,356 312,142 39,813 95o,745 6o9,739 5,316,819 2,677,215 246,010 6,036,192 2,788,031 7 THE MONTHLY REVI EW like month a year ago. Cattle and calf slaughter was the largest of record. The August totals of Federally inspected slaughter with comparisons: Cattle Calves August 1934-------------------1,576,204 970,211 July 1934-----------·---··-·-·-··-1,192,000 770,000 August 1933·-········----···--·840,262 415,816 Eight months 1934.. ·---··-7,648,648 4,909,820 Eight months 1933···--··-5,475, 137 3,2w,295 NOTE: The slaughter of cattle and calves fc,r poses is included in the totals for 1934 and of hogs for Hogs Sheep 2,641,187 1,523,328 3,323,000 1,294,000 3,476, 71 5 1,5.32,240 79,220,482 10,292,371 11 ,330,399 32,099,34,4 Government relief pur1933. Cold Storage Holdings A 30.4 per cent increase in storage stocks of beef, exclusive of drouth relief meat held for the account of the Federal Emergency Relief Administration, and declines of 16 per cent and 19.5 per cent in holdings of pork and lard during August were shown by the September I cold storage report issued by the Department of griculture. These movements reflect the increased marketings of cattle, occasioned by the drouth, and decreased supplies and lighter average weight of hogs. Stocks of pork and lard have shown an average increase of 12 per cent during August the past five years and holdings of beef normally show little change. Inventories of miscellaneous meats, which generally decline, showed a gain of 14.3 per cent and stocks of lamb and mutton and poultry increased about as usual. Storage holdings of all meats declined 9.3 per cent during the month and, although 19 per cent lower on September 1 than one year earlier, were only 5.8 per cent below the September 1 five-year average. Owing to the extremely high temperatures which impaired quality and reduced supplies of fresh offerings, the seasonal withdrawal of eggs in August was somewhat heavier than a year ago or normally, and month-end stocks of cased eggs were I 1.3 per cent under a year ago and 7.4 per cent below the average. The increase in butter stocks, which exceeded trade expectations, was not as large as in August, 1933, but larger than usual, and accumulations as of September 1 were 31.4 per cent less than a year ago and 13.8 per cent short of the five-year average. Holdings of cheese increased moderately. Cold storage holdings in the United States as reported by the Department of Agriculture: *Sept. I 1934 Beef, 1bs.·-·-··········································80,237 Pork, lbs ......................... ·-···········-·······- 540,493 Lamb and mutton, lbs....................... 1,606 Poultry, lbs ...........................................· 46,054 **Turkeys, lbs ............................. ••·····-··-· 4,766 Miscellaneous meats, lbs ......... •-·········· 89,420 Lard, lbs .........·-·······················-············ 168,719 Eggs, cases.............. ·-·······--··················· 7,936 Eggs, frozen (case equivalent) ·-······-· 3,210 Butter, creamery, lbs.·--····················· 120,435 Cheese, all varieties, lbs .............--······ 122,220 *Subject to revision. **Included in Poultry. Aug. I Sept. I Sept. I 1934 1933 5-Yr.Av. 61 ,545 48,446 34,928 643,566 756,701 640,200 1,5 18 1,487 2,381 41,616 44 ,904 47,789 6,648 4,062 4,415 78,266 72,848 69,o93 209,497 224,476 138,0II 8,961 8,944 8,568 2,889 3,473 2,927 108,748 175,476 1.39,891 115,842 108,035 100,309 (ooo omitted). Petroleum Production of crude oil in the five producing states of the District, as estimated from the weekly reports of the American Petroleum Institute, totaled 21,987,000 barrels during August. This total represents a decrease of 2.9 per cent in production from that reported by the Bureau of Mines for July and a decrease of 12 per cent from the official record for August, 1933. Declines in Oklahoma accounted for most of the losses. Daily average production for the five states totaled 709,000 barrels in August, or 13,000 barrels in excess of Federal allowablcs. Federal allowab!es for August were: Oklahoma, 480,100; Kansas, 131,200; Wyoming, 35,000; Colorado, 3,000; New Mexico, 46,700; Tenth District, 696,000; and the United States, 2,449,300 barrels per day. The gross crude oil production figures for the five states and the United States: *August 1934 Barrels 15,129,oc-o 4,089,000 1,183,000 113,000 1,473,000 July 1934 Barrels 15,~,000 4,210,000 1,277,000 109,000 1,460,000 August 1933 Barrels 18,756,000 3,924,000 961,00-:, 77,000 1,269,000 Total five states.......................... 21,987,000 Total United States.·-···-············· 76,763,000 *Estimated, American Petroleum Institute. 22,665,000 81,548,000 24,987,000 85,239,000 Oklahoma..·-···-··················-·········· Kansas ...... ·-·····-···················-········ Wyoming ................ ·-···-········-······· Colorado........................................ New Mexico.... ·-·························-· o changes in mid-continent crude oil quotations, ranging from 76 cents to $1.08 per barrel per degrees gravity, were recorded in August. A year ago prices advanced 35 cents per barrel to close at a spread of 65 cents to 97 cents per barrel. In general the market for refined products was nervous but fuel oils and wax were strong to higher. Coal Operations at the bituminous coal mines in the Tenth District increased in August by somewhat more than the usual seasonal rate. The output for the month was a third larger than that for July but was smaller by 8.1 per cent than in August, 1933. Prodoction, as estimated from the weekly reports of the United States Bureau of Mines, totaled 1,225,000 tons, or less than in any August in recent years, 1932 excepted. The production figures by states follow: Colorado...... ................................ . Kansas and Missouri ................. . New Me ·ico............. ···········-·······Oklahoma.__ ........................ _....... . Wyoming .. ••·················-··· ········-···· *August 1934 Tons 341,000 359,ooo 87,000 11 0,000 .328,000 July 1934 Tons 21.3,000 303 ,000 78,000 62,ooo 264,000 August 1933 Tons 3j4,000 41 7,00::, 90,000 170,000 282,000 Total six states .... ••·····-················ 1,225,000 920,000 1,333,000 Total United States.................... 27,490,000 25,280,000 33,910,000 *Esti.mated from the weekly reports of the United States Bureau of Mines. Zinc and Lead Shipments of zinc concentrates, by mines in the Tri-State district during the four weeks' period ended Spetember 1, were more than twice as large as in the preceding four weeks, when a large number of mines were voluntarily shut down. Deliveries exceeded the tonnage reported for the four weeks ended September 2, 1933, by 19.5 per cent, but the value was smaller as prices were much lower. Lead ore shipments increased 93 per cent over the four weeks' period ended August 4 but were only one-half as large as a year ago, with values showing a decline of 64.4 per cent. The tonnage and value of zinc ore and lead ore shipments from Missouri, Kansas, and Oklahoma: ZINC ORE Oklahoma.......................................... Kansas.............................................. 1issouri ..... ••·················-··-················ Tons Value 22,720 '/, 629,518 5,718 I 58,768 1,956 54,162 4 Weeks ended Sept. 1, 1934 .. ... . 30,394 t, 842,448 4 Weeks ended Aug. 4, 1934 ..... . 14,7.33 412,524 4 Weeks ended Sept. '1, 1933 .... .. 2.5,4.34 884,418 35 Week:, ended Sept. 1, 1934-• ··-· 202,902 5,715,695 .35 Weeks ended Sept. 2, 19.3.3 ..... . 172,756 4,.321,4.32 LEAD ORE Tons 2,417 '/, 221 129 Value 89,4 29 8,177 4,773 2,767 '/, 102,379 1,434 53,452 287,333 5,473 22,639 956,088 24,236 1,064,632 Two cuts of 1 each brought closing prices for zinc ore to 26 per ton, $6 below a year ago and within r of the opening and low price of 1934-. Lead ore prices were unchanged at $37.50 per ton as against $52.50 last year. 8 THE MONTHLY REVIEW Business Conditions in the United States By the Federal Reserve Board ""'""' '"° uo 120 110 INDUSTRIAL PRODUCTION 130 - \,, A.. \ 90 IX) 120 '\.... 70 100 A "'-v"\ I\ I \ ,,., v 90 I ~ \. ..., 60 so 1930 , 0 12 80 70 60 11J3 19J r. Index number of industrial production, adjusted for seasonal variation. Lates t figu re: Augus t, 73. ,tlll tt.lfl' 1\0 O[P~RTM[ Nl STOR( SAL£5 200t--- _ - - t - - - + - - - - + - - - + - - - + - - - - - f l 00 .,,-,,,;;_,._..,,,J~J/•-1 W'-l~lMJtRI~ 1;;9 19)0 1931 19>2 19H l9)lf. I ndexes of dai ly average va lue of sales. (19231925= 100.) Lates t figu res are for August : adjusted, 79; un adj us ted, 60. WHOLESALE PRIC CS Indexes of the United States Bureau of Labor Statistics. By months 1929 to 1931 ; by weeks 1932 to date. (1926=100.) Lates t fi gures, September 15: fa rm products, 73.7; foods, 76.2; other commodities, 78.5. SGo,1. .Srn,,,1,u J .... . ,-#- " to,.. ri t ~ - i - - - - - - t 4 1932 H33 19J Wednesday figures for reporting member banks in 90 leading cities. Lates t fi gures are for September 19. Total output of industry, which usually increases at this season, showed little change in August. Factory employment and payrolls increased between the middle of July and the middle of August by about the usual seasonal amount. Distribution of commodities at department stores showed a more than seasonal growth. PRODUCTION AND EMPLOYMENT: Output of basic industrial products, as measured by the Board's index, which makes allowance for usual seasonal changes, declined from 75 per cent of the 1923-1925 average in July to 73 per cent in August. At steel mills production continued to decline during August and the early part of . September, contrary to seasonal tendency; in the middle of September a slight increase in activity was reported. Output of automobiles, which had been maintained at a relatively high rate during the spring and early summer, declined in August. Lumber production showed an increase. In the cotton textile industry, production was in larger volume in August than in July, but was retarded by the strike in the first three weeks of September. At meat packing establishments, output in August was larger than in any other recent month, accompanying heavy marketings of cattle from drought areas. F actory employment showed a seasonal increase between the middle of July and the middle of August, reflecting considerable growth in employment in the wearing apparel, canning, and meat packing industries, while employment in the iron and steel industries and at railroad repair shops declined. The value of construction contracts awarded, as reported by the F. W. Dodge Corporation, was about the same in August as in each of the four preceding months. Department of Agriculture estimates as of September 1 indicate a corn crop 40 per cent smaller than the average for the five years, 192 7-1931, and other feed crops also are expected to be unusually small. The condition of pastures on September 1 was poorer than in any other recent year but some improvement has been reported in the early part of September. The spring wheat crop, estimated at 93,000,000 bushels, is about one-third of the five-year average and the winter wheat crop is also small. The cotton crop is estimated at 9,300,000 bales, a sharp reduction from other recent years. DISTRIBUTION: Volume of freight carloadings, which usually increases at this season, showed little change in August. Shipments of miscellaneous freight showed no season al expansion, while shipments of live stock increased considerably. Department store sales increased by an amount substantially larger than is usual in August and were 2 per cent higher than a year ago. COM 1ODITY PRICES: Wholesale prices of commodities increased in August and the first week of September, reflecting sharp advances in the prices of farm products and foods. Hog prices advanced rapidly during the month of August and in the latter part of the month cattle prices also showed a marked increase. Since the beginning of September, prices for both hogs and cattle have declined somewhat, and in the middle of the month there have also been decreases in the prices of wheat and cotton. In August, as in other recent months, there was little change in prices of commodities other than farm products and foods. , BA K CREDIT: A seasonal increase in demand for currency by the public and an increase in Government deposits at the reserve banks were reflected in a decline in member bank reserve balances between the middle of August and the middle of September. On September 19, reserve balances were about 'l,1,700,000,000 in excess of legal requirements. There was little change in the volume of reserve bank credit during August and September. Total loans and investments of reporting member banks showed little change between August 15 and September 19; loans, other than security loans, increased by 170,000,000 and holdings of securities by '$50,000,000, while security loans declined by f,200,000,000. The increase in loans other than on securities occurred largely at banks in New York City and in the western districts, and reflected chiefly a growth in direct loans to customers for ordinary commercial purposes and for financing the harvesting of crops. The banks' holdings of acceptances and commercial paper, which also reflect current business financing, increased during the period. Short term money rates continued at low levels. Yields on both United States Government and corporate bonds increased during August and the first half of September.
@FedFRASER