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C
T E MONTHLY BULLETIN
Covering Conditions in the Tenth Federal Reserv~ District
FEDERAL R.ESERVE BANK OF KANSAS CITY
For the Information of Member Banks and Business lntere.'its of this District
ASA E. RAMSAY, Chairman Board Directors
and Federal R,serve Agent
C. K. BOARDMAN, Assistant Federal Reserve Agent
and Secretary
C----------------------•-----------------......-------•D
VoL. 5
No. 10
Kansas City, Mo., October 15, 1920
RICE rece sions, more sweeping than any other occurring since the high war peaks were
attain d, contributed to the unsettlement of
conditions in th m nth of September and in
October to this date. A snncy of the marl· ts shows
lhal near!) very st,1p] · prodund in th Tenth l•ed cral P sen Distri ·t was affect cl, more or le s, by
frcquen d clinec: in prices. \Vheat, orn and oats uffered such radical reductions as to leave a wide margin between prices prevailing in the first full week
in October and the high price of last mid-summer.
Other products of the farm and orchard declined in
price. Flour broke heavily in sympathy with wheat.
Grass cattle, constituting the bulk of the marketings,
slumped perceptibly. Sheep also went down in price.
Even hogs, after showing strong resistance, shared to
some extent in the price adjustment movement.
The effect of such deflations of commodity values as
abov stated--togethcr with September declines in
cotton, wool, t xtil s, hides, leather, manufactured
products, and ome of the building materials-would
naturally cause gen ral hesitancy in husines . In this
district, however, the proce s of adjustment thus far
has been accompanied by no violent upheavals. In
fact, there is noted in the reports which form the basis
for this review a tone of cheerfulness, born of confidence that underlying conditions are sound and that
things will in due course of time right themselves.
Although there is some uncertainty in the primary
markets, rebil trade and the consuming trade is proceeding quietly, September sales av raging around
()% better than in
eptemher, 1919. Buying by whole..;;aler is light, and manufacturing operation are restrict.ed, but a, foreign demand for goods has been
somewhat reduced there is no fear regarding carcity
of goods in the future.
Of the many reports on conditions in this district
it is noted that there has been a general improvement
in the labor situation. The supply is keeping even
with requirements and in some instances labor is reported more plentiful.
ide from a strike of coal
miners in th McAl ster, Oklahoma field, inaugurat d
October 15, there are no trikes of importance now
pending. Demands arc more conservative and there
is poi_nted out an increased efficiency in the individual
worker which, it is asserted, should exert a steadying
influence on industry and the situation in general.
The coal supply situation is improved and fears of
winter hortage ar di ·app aring with in rca eel ffiicncy of the railroads in distribution. Pr duclion of
oil is at a high mark, lhongh consumption in th
United 'latcs this year is r 'ported to he brg r tl1,111
th entire world consumption in 1918. L ·acl and zirn
mining howed gr at activity in S pt mber, whil no
particular improv ment in metal mining was reported.
The building reports showed further d dines in eptember, but with a nation-wide movement looking to
improvement of the housing situation, and with lumber and material prices somewhat lower than the high
levels of the earlier months of this year, greater activity is anticipated in the coming year.
Commercial failures in this district in the nine
months of the year now passed numbered 313 with
$3,084,067 of liabilities, which compares with 189 failures and $3,202,953 of liabilities in the first n inc
month of 1919. According to th reports there were
only three in olvcncie. of hanks in the ntire T nth
Federal Re erve District, out of a total of approximately 4,500 banks, in the nine months of thi year.
Dun's reports for S ptember and for the first nine
months of 1920, on commercial failures in the Tenth
Federal Reserve District, with 1919 figures for comparison, follow :
Number Insolvencies
Liabilities
1920
1919
1920
1919
September . . . . . . .
26
20
$ 466,451
$ 152,458
Nine mos. . . . . . . . . 313
189
3,084,067
3,202,953
FINANCIAL.
The demand for loans continnes str 11g, with rates
advancing. At thi time there is no eviden e of early
liquidation. The continued heavy demand appear, to
have been caused largely by delayed marketing of
crops, due not only to shortage of cars but the tendency on the part of many farmers to hold for higher
prices. Another factor in the situation is the fall
planting, which has caused a decrease in country bank
deposits. During the planting ea on the farmers
have had no time or inclination to market their products. Conservative banker are urging their ustomers to at lea t mark t suffici nt o-rain to liquidate th ir
bank indebtednes , speculating if they o <le ire on
any remaining portion. This appears to be wi e council, and tmless some similar action is taken all over
2
THE MONTHLY B ULLE T IN
the district the outlook for sufficient liquidation at
this season to enable banks to prepare for the spring
demand is unfavorable.
Member Banks Showing.-Eighty-three selected
member banks in cities widely scattered over the district reduced their loans $4,120,000-which is less than
three-fourths of 1%-between September 3 and October 1, as reflected by their reports to the Federal
Reserve Bank of Kansas City. In the same four weeks,
largely on account of the demand for funds, deposits
in these eighty-ihrec member banks decreased $23,268,000, or a little less than 4¼ %- The totals on the
principal items arc shown in the following:
Oct.1,1920 Sept.3,1920
Total U. S. Securities owned ...... $ 51,879,000 $ 53,355,000
Loans ( exclusive of discounts) secured by U. S. war obligations... 20,678,000
20,123,000
Loans secured by stocks and bonds
other than U. S. Securitjes. . . . . . . 79,144,000
80,288,000
All other loans and investments. . . . 446,603,000 460,124,000
47,598,000
Res0rv Balance with F. R. Bank. . . ti 6,626,000
Nd demand deposits on which rcRC'rV<' is computed ............... '104,849,000 426,849,000
98,661,000
TinH' d(•poHilH . . . • . . . . . . . . . . . . . . • !>7,393,000
Clearings. - Bank clearings i11 lweuly-cighl cities of
the district 111 Scptcmher were $1,867,451,914, which
is $55,180,469 more than the total reported from twenty-nine cities in August. The clearing house transactions for the cities reporting for both years disclose
a decrease of less than one-half of one percent for
September as compared with the transaction in the
same month last year. Taking into consideration the
decisive yielding of prices in many of the products of
this section and a slowing down of the wheat movement, the September showing ma.de by the clearing
houses is regarded as indicative of an increasingly
larger volume of business. Figure, for the month arc
compared below with Scplemher, 1919, with percent of
increase or decrease :
Pct.
Sept., 1920
Sept., 1919 Change
Kansas City, Mo ....... $
Omaha, Neb ........ .
Denver, Colo. . . . .... .
Oklahoma City, Okla .. .
Wichita, Kans. . . .... .
St. Joseph, Mo ....... .
Tulsa, Okla......... .
Kansas City, Kans . . . .
Lincoln, Neb........ .
Muskogee, Okla. . ... .
Hutchinson, Kans .... .
Topeka, Kans. . . . ... .
Joplin, Mo .......... .
Cheyenne, Wyo. . .... .
Grand Island, Neb .... .
Okmulgee, Okla. . ... .
Colo. Springs, Colo. . . .
Bartlesville, Okla. . . . .
Pueblo, Colo. . . ...... .
Atchison, Kans ...... .
Hastings, N eh. . . .... .
Fremont, Neb ....... .
McAlester, Okla. . . .
Guthrie, Okla. . ...... .
Parsons, Kans. . . .... .
Miami, Okla......... .
Lawrence, Kam; ...... .
Lawton, Okla. . . ..... .
963,187,726 $1,080,241,146 -12.1
245,510,191
283,134,884 -13.3
177,549,072
150,001,059
18.3
136,336,542
61,721,779
120.9
64,870,081
44,767,330
44.9
63,108,105
71,526,334 -13.3
54,581,100
45,004,859
21.2
23,138,000
3,155,568
633.3
22,166,816
24,996,291 -12.7
19,943,360
16,762,917
18.9
16,399,200
13,107,896
16,871,086 - 28.7
7,752,363
. 6,390,565
21.3
6,879,078
6,049,274
13.7
6,604,281
5,816,909
4,305,469
35.1
5,466,617
4,623,017
18.2
4,989,836
4,944,305
0.00
4,866,612
3,352,202
45.2
4,004,110
3,563,306
12.4
3,665,844
3,448,783
6.3
3,261,745
4,220,735 -29.4
3,165,000
. 2,488,809
2,714,236
9.1
2,274,005
2,092,73G
7.9
2,261,182
1,980,947
2,050,702
-:u
1,851,060
1,280,153
41.5
September totals ..... $1,867,451,914 $1,84.6,993,308 *- 0.43
Nine m onths ......... 13,619,069,561 12,111,76i,726
12.4
*Percentage computed on cities .repcn·ti:r:ig_. f<:>r _.S.epte:mber
of both years.
· ·
Collections.-Some improvement is noted in the reports for September, and collections generally are
good, in some instances fair, though not up to the
activity of one year ago. Indebtedness, after declining
in August from the high point reached at the end of
July, took an upturn in September and on October 1
was several points higher than on the same date last
year.
MERCANTILE.
Wholesale dealers report purchases of dry good~
and kindred lines slow and below last year's volume.
Early orders for fall shipments have been completed
and there are practically no unfilled orders and no advance orders yet taken for spring delivery. Wholesalers are not buying on account of unsettled condition of manufacturing prices. They report that retailers are buying from hand to mouth but do not
hesitate to buy their wants, which in ihe aggregate
c,·rcNl salrs for tlH' same period last year. Re<luc
1ions of about 20% have been made on prices of well
known brands of staple cotton goods. As for ign demand for manufactured goods is somewhat reduced
during recent months there is no fear among buyers
regarding scarcity of goods in the future.
In millinery wholesalers say cautious buying prevails and while trade in September was below that of
August by about 30% it was slightly heavier than
one year ago. Unfilled orders at the end of September were very light.
The wholesale drug trade is reported as nearly
normal, sales in September being 5% larger than in
August and 10% larger than in September, 1919.
Sales of groceries are reported by wholesalers about
larger than in August but only 3.5% larger than
in September a year ago. Both wholesalers and retailers are proceeding cautiously because of price uncertainties. Concerning future supplies it is pointed
out that the 1920 pack was restricted and shortage
may develop as demand increases.
7%
Furniture sales in September, as reported by extensive wholesalers and manufacturers, averaged
13.7% less than in August, although exceeding sales
in the same month last year by 3.9%. Very few unfille<l orders are reported. Dea1crs are not inclined
to place future orders unless prices are guaranteed.
Sales of hardware in September were 3.6% below
August, but 17.4% better than in September, 1919.
according to reports received from wholesale dealers.
Unfilled orders are large because of inability of wholesalers to make deliveries. It is said, however, that
manufacturers are gradually increasing their output.
Retail Trade.-September buying activity by the
consuming pnb lic is reflected in the department tore
reports. These show an increas in the volume of
nel sales over September, 1919, a nd a lso a la rger volume of sal ~ fo r the sea~011 beginning w ith July over
th e same period last year. T he combined departm ent
-sfo~e- reports follow :
THE MONTHLY BULLETIN
Percentage of net sales during September, 1920, compared with net sales during same month last
year .................. . ................. Inc. 5.65%
Percentage of net sales this season from July 1 to
September 30, 1920, compared with net sales during the same period last year .............. Inc. 11.07%
Percentage of stocks at close of September, 1920,
compared with stocks at close of same month last
year ......... .. ...................... ... Inc. 27.01 '10
Percentage of stocks at close of September, 1920,
compared with stocks at close of August,
1920 . . .................................. Inc.
4.21 %
Percentage average stocks at close of each month
this season (commencing with Jan., 1920), to average monthly n t sales during same period.. 347.66%
Percentage outstanding orders (cost) at close of
September, 1920, to total purchases (cost) during calendar year • . . . . . . . . . . . . . . . . . . . . . . . . .
6.3%
Unseasonable weather through most of September
and slow buying by the public brought pri e reductions
at th end of th month o( a much a 20% in the 1 adin r men' cloth in and f urni. hing tore in nearly all
citi · of the di trict. Thi ·timulated 1 uying to a
consid rab]e extent. Reduction sales in many lines
of dry goods, millinery and hoes brought improvement to the ituation, although it was apparent from
reports that customers were buying for their immediate needs.
AGRICULTURE.
Com.-In the states of the Tenth Federal Reserve
District most of the corn was mature enough to escape
any great damage from the early frosts that came in
the last week of September. Late fields on low lands
where the corn had not matured sufficiently suffered
. ome damage, but by feeding such corl} at once losses
are expected to be small. Corn for silage has been
practically all cut and much of the backward fields
was used for that purpose. Cutting and shocking of
corn for grain is progressing rapidly.
Reports on the condition of corn from the states of
this district to October 2 follow:
Colorado-,Corn generally quite well matured. No great
damage from recent frost. Silage corn practically all cut.
Kansas--K.illing frosts occurred in portions of northern
half of the state. Elsewhere conditions were ideal for ma-
Boston .. ...............
New York ...............
Philadelphia . . ..........
Cleveland ...............
Richmond ...............
Atlanta .................
Chicago ................
St. Louis ...............
Minneapolis .............
Kansas City . . ..........
Dallas ..................
San Francisco . . .........
Oct.1
Forecast
for 1920
8,166
39,171
62,563
211,282
199,349
259,043
939,972
468,004
260,030
661,648
197,680
9,389
Total. ................3,216,19i
CORN
Estimate
for 1919
10,276
41,089
66,444
212,297
188,994
240,315
927,852
380,722
242,363
372,870
225,74:3
8,486
2,917,450
3
turing and the bulk of the crop was past damages from frost.
Missouri-Weather very favorable for maturing crop. A
few bottom fields were damaged by light frost. Cutting for
silage and fodder quite general.
Nebraska-A small percent of late corn damaged by frost.
The great bulk of the crop was matured and benefited by
the frost.
New Mexico-Harvesting in progress. Yields large.
Oklahoma-Practically all late corn safe from frost damage and being shocked as rapidly as possible. Crop is one
of the best ever grown.
Wyoming-Condition good. Cutting progressing nicely.
Crop out of frost danger.
Winter Wheat.-Seeding progressed rapidly under
favorable weather and soil conditions through September so that by October only a small percent of the
acreage remained unplanted.
luch of the early
planted wheat was up and doing well at the beginning of October, according to the reports, although
in some s ctions it would be gr atly benefited by light
rains.
ome ·omplaint of worm damage was r ported
from western sc ·tions of klah ma, bnl g ncrally th
growing wheat was reported in good ·ondition.
'I'hre bing of this year's winter wheat from the
stack was reported as progr ssing slowly. Harvesting
of spring wheat was generally completed in Colorado
and Wyoming and threshing was in progress. The
yield per acre is about as usual. The harvesting of
oats and barley in Colorado and Wyoming was about
completed and threshing was in progress. Seeding
for next year's crop of rye was also in progress.
Cotton.-'I'he Oklahoma report of October 2 says:
"Cotton is opening fast on the uplands but a trifle
more slowly in the bottoms, due to rank growth. Little danger of damage if killing frosts hold off untiJ
averag date. Pi kcr are paid $2 per hundred. Some
farmers are holding their cotton for better prices and
for the price of seed to rise."
Potatoes.-'I'he Colorado report of October 2 says:
"The crop is holding up toward earlier estimates. Recent frosts killed the vines and will have a tendency
to mature the crop. Digging of the late crop is well
under way." In Nebraska the harvest of the commercial crop progressed slowly and marketings were
light to October 1. Yields are heavy.
Oct.1
Forecast
for 1920
440
11,834
23,808
34,487
37,613
6,614
63,037
54,684
147,994
259,108
15,118
95,916
750,648
WHEAT
Estimate
for 1919
480
12,493
25,922
63,748
37,094
10,326
112,202
108,022
135,094
300,994
33,605
101,008
940,988
Oci.1
Forecast
for 1920
13,599
48,283
28,291
85,291
28,005
27,177
559,327
70,585
287,150
204,218
48,155
44,281
1,444,362
OATS
Estimate
for 1919
12,123
31,856
23,214
70,279
26,397
29,008
461,082
63,595
208,857
182,677
99,004
40,219
1,248,311
THE MONTHLY BULLETIN
4
Hay.-Harvesting the fourth crop of alfalfa was
reported in progress in Kansas, Nebraska and Oklahoma at the beginning of October, while in Colorado
and vVyoming the third cutting was under way. This
year's crop of alfalfa, as well as of other grasses, has
been heavy, due to plenty of moisture and an exceptionally good growing season.
Corn.-Declines in corn prices were no less remarkable than the declines in wheat prices. Between September 3 and October 2, No. 2 white corn at Kansa::,;,
City dropped from $1.45 to 98c. The following are
the reported averages of cash sales of corn at the
dates mentioned:
Fruit.-Apple picking was in full progress October
1. J onathans, Grimes Golden and late fall apples had
been mostly harvested at that date, and the winter
varieties such as Winesaps, Ben Davis, Gano, York
Imperials and Huntsmen were being picked, the quality being excellent. In the mountain states the apple
crop was well made and the harvest commenced.
Peaches were about all harvested.
September
September
Septem her
September
October 2
October 9
GRAIN MOVEMENTS AND PRICES.
While the grain markets in the month of September
were erratic and unsettled because of wide sweep•·
in prices, in which wheal, corn and oats declined to
lowest level · since the war, the receipts of wheat at
the markets of this <li ·trict slumped to at lea.st lOo/o
below receipts for August and about 2So/o below the
receipts for September of last year. A slight improvement in the supply of corn and other grains is noted in
the September reports.
Wheat.-While the falling off of wheat marketings
in September may have been influenced in part by
inadequate facilities for transportation and slow
market demands, most of the reports from the country
would indicate that the chief cause of the slump was
due to a disposition on the part of farmers to store
and hold wheat, believing that prevailing prices are
too low.
An illustration of the downward trend of wheat
prices from the high levels of last July may be had
from the following reports of average cash sales of
wheat at Kansas City in each week named:
Dark Hard Winter
July 16 .... ..... $2.87@2.96
August 13 ....... 2.63@2.7i
September 3 ..... 2.60@2.64
September 10 . . . . 2.62@2.65
September 17 .... 2.51@2.52
September 24 . . . . 2.45@2.53
October 1 .
2.26@2.29
October 8 .
1.93@2.10
Hard Winter
$2.72@2.90
2.54@2.57
2.59@2.60
2.46@2.55
2.40½@2.45
2.34@2.40
2.18@2.22
1.90@2.03
Red Winter
$2.73@2.87
2.49@2.54
2.54@2.60
2.55@2.65
2.51@2.57
2.48½@2.50
2.26@2.32
2.05@2.14
No. 2White
3 . . .... $1.44
10 ..... 1.40½
17 . . . . . 1.20
24 . . . . . 1.15
. . . . . . . . .98
. . . . . . . • .85
No. 2 Yellow
$1.45
1.35
1.23
1.20
.94½
.89
No.1 Mixed
$1.43
1.32
1.20
1.12
.90
.85
Oats.-No. 3 white oats, which on July 9 sold at
$1.05 in Kansas City, sold at 67¼c September 3, at
65c September 10, at 6l ¼c September 17, at 59c September 24, at 56;/4c. October 2 and 54c October 9.
FLOUR MILLING AND PRICES.
Production of flour at the rni11s of this district in
Scptcmb r was 25.9% below the record for the ~ame
month las t year and on basis of a.bout 60% of capacity.
The Northwestern Miller's reports covering operations at Kansas City, Omaha and 92 mills in Missouri, Kansas, Nebraska and Oklahoma outside of
these cities are indicative of the milling activity of
the district. They show the output in barrels for the
four weeks above mentioned as follows:
1920
Kansas City . . . . ; . . . . . . . . . . . . . . . . . 255,200
Omaha . . . . . . . . . . . . . . . . . . . . . . . . . . 34,689
92 Interior Mills . • . .............. 1,086,141
1919
335,200
82,455
1,440,276
Total four weeks . . . ......... 1,376,030
1,857,931
The slowing down of milling operations, as indicated by the decreased output, is reported to be due
largely to the general decline of the wheat market late
in September and at the beginning of October. Buyers
who had previously indicated their intention of buying
flour when a certain figure was reached, were still
cautious even after drops in prices which placed flour
quotations below the figure spoken of by the buyers.
Some idea of the change in prices of hard winter wheat
flour is indicated by the Northwestern Miller's reports
of quotations per barrel at Kansas City on October
5 and on September 7, which follow:
RECEIPTS OF GRAIN IN SEPTEMBER
Kansas City
1920
1919
Wheat, bu .............................................. 7,597,800
10,180,350
Corn, bu. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 493,750
357,500
Kaffir, bu. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159,500
86,900
Oats, bu. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 895,900
622,200
Rye, bu. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82,500
49,500
Barley, bu. . . . . . . . . . . . . . . . . . . . . . . . • . . . . . . . . . . . . . . . . . . . . . 144,000
154,500
Wichita
1920
1,580,000
17,500
10,800
30,000
5,000
SHIPMENTS OF GRAIN IN SEPTEMBER
Wheat, bu. . . . .......................................... 4,7,30,400
6,690,600
790,000
Corn, bu. . . . .... , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23'6,250
166,250
12,000
Kaffir, bu. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126,000
31,000
10,800
Oats, bu. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 453,500
430,500
30,000
Rye, bu. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,900
15,400
5,000
Barley, bu. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76,700
83,200
Kansas City flour movements in September were: Receipts-61,750 bbls. Shipments, 227,175 bbls.
In September, 1919, receipts were: 106,600 bbls. Shipments, 390,000 bbls.
1919
2,052,000
25,000
5,000
1,200,000
12,000
2,000
THE MONTHLY BULLETIN
October 5
Short patent ................ $10.90@11.10
Straight ................... 10.00@10.40
First clear. . . . . . . . . . . . . . . . . . 8.50@ 9.25
September 7
$12.60@12. 75
11.50@11. 70
10.40@11.00
Mill feed also suffered price reductions and dullness of trade.
LIVE STOCK.
Features of the live stock supply situation at the
six markets of this district in September were: A
·easonal increase in the movement of grass cattle and
continued relative scarcity of corn fed s, a lighter marketing of hogs and a slight increase in receipts of
sheep. The supply of cattle for September was the
largest of the year and season, being 28.9% larger
than in August, though it was 20.7% below the supply
in September of last year. The number of calves on
the markets was about the same as in the previom,
mouth and in the corresponding month of 1919. Hog:,,
r~~ccivcd in September were 16.4% less in ntunhc>r
than in August and 11.7% below lhc record for September, 1919. 'l'hc sheep supply showed 24.7% i11 crease over August and a lo..,s of 38% when compared
with the figures for September of last year.
Following are the figures representing receipts of
live stock at each of the ix markets for September,
with combined totals for these markets for Augu t,
1920, September, 1919, and for the first nine months
of this and last year:
Live Stock Receipts
Kansas City .. .
Omaha ....... .
St. Joseph .... .
Denver ...... .
Oklahoma City. .
Wichita ...... .
Cattle Calves
274,446 61,291
183,7 0 10,639
66,085 13,940
37,027
3,720
34,463
6,485
26,867
Sept., 1920 . . . . . 612,608
Aug., 1920 . . . . . 476,810
Sept., 1919 . . . . . 773,290
9 Mos., 1920 .... 3,857,787
9 Mos., 1919 ... .4,476,940
Hogs
116,770
108,668
88,963
13,583
34,890
18,870
Horses &
Sheep
Mules
221,388
6,855
517,883
2,159
95,194
3,106
205,817
1,624
1,997
385
1,824
1,309
96,075 381,744 1,044,103 14,438
96,724 456,800 837,061 20,587
95,318 432,201 1,684,623 27,989
474,179 6,546,175 5,284,222 155,279
486,528 7,759,137 6,197,321 127,023
Cars of live stock received numbered 33,515 in September as compared with 41,863 in September, 1919,
a decrease of 8,348 cars or 19.9% .
Cattle.-Toppy corn fatted steers sold all month
around $17@17.50. But with straight grassers as the
bulk of the offerings it is noted that never before was
there such a wide spread in prices of cattle as was
shown in the quotations at end of September. Values
on the grassers were anywhere from $1.50@3.00 lower
than at the close of August, some pretty good steers
selling as low as $8.00 per cwt. At the clo ·e of the
month values on the better grades of butcher cows
were down to the lowest levels reported in months.
Early in the month scattered sales of fed cows wer
made at $12.50, but at the clo e very few cows w re
good enough to bring $9.00.
5
The movement of stockers and feeders to the country was the heaviest of the year and materially heavier
than in September a year ago. Stockers and feeders
were about 50c lower at the end of the month, but
-;teady, and in good demand.
Hogs.-The light receipts of hogs in September is
attributed by stockmen to the huge corn crop in this
district, a large portion of which will be fed and converted into pork. The prices paid on bulk sales of
hogs in the week of September 21, were $16.85@17.40
at Kansas City and $16.25@16.75 at Omaha. Closing
prices for the month at Kansas City were $16.25@16.90
and at Omaha $15.00@16.50. During the week ending October 9 hog declined in price, the bulk of the
sales at the end of the week being at $14.65, with
$15.50 as the top price paid.
Sheep.-Thc tra<l in sh ep and lambs during Sepwas uneven an<l closing prices were sharply
lower. The price range at 1 ansas City Septcmb r 28
\ a-; $9.000)13.25 on lambs and $7.00@9.00 on year!
ings; at Omaha $11.00@ 13.25 on lambs and $8.00@
9.25 on yearlings. 'rherc was a decline of around S0c
in the week ending October 9.
t c.mber
Packers' Operations.-September slaughter of meat
animals was heavier than in August but somewhat
below the slaughtering operations in September a year
ago. Figures representing the purchases by packers
follow:
Cattle
September, 1920 ...... 362,737
August, 1920 . ........ 225,838
September, 1919 ..... .436,110
Calves
73,346
56,784
81,860
Hogs
423,790
346,439
629,236
Sheep
529,046
322,177
583,442
All live stock i!:l reported as in favorable condition,
and pastures and ranges are generally excellent for
thi~ season of the year.
PETROLEUM.
Production of crude oil in Kansas and Oklahoma in
September is estimated from unofficial reports at an
average of 400,775 barrels daily for the thirty-day
month, indicating a total output of 12,023,250 barrels,
which is probably 2% to 5% below the total to be
reported when the official returns are forthcoming.
This compares with a total of 9,210,000 barrels production in September of last year or an increase of
30.5%. Production in the Rocky Mountain fields,
which has been averaging around 1,600,000 barrels
monthly since May, was maintained at a little better
than that figure in September, though official reports
have not been received.
The extent of the activity in the Mid-Continenl
field to 1 ring production of oil up to market require1n nts is to be seen in the following table which shows
the v lnmc of crude oil produced each month this
year in compari on with the volume for the corresponding months in 1919:
THE MONTHLY BULLETIN
6
Kansas
Oklahoma
Total
2,622,538
2,523,725
2,856,867
2,890,080
3,046,215
2,859,060
3,057,189
3,198,425
3,037,500
7,747,861
7,427,306
8,194,230
8,626,060
9,338,471
9,014,340
9,842,810
9,712,300
8,985,750
10,370,399
9,951,031
11,051,097
11,516,130
12,384,686
11,873,400
12,399,999
12,910,725
12,023,250
ine months in 1920 ... 26,091,599
ine months in 1919 ... 21,528,686
Increase . . . . . . . . . . . . . 4,562,913
78,889,118
60,581,560
18,307,558
104,980,717
January . . . . . . . . . . . . .
February . . . . . . . . . . . .
March . . . . . . . . . . . . . . .
April . . . . . . . . . . . . . . . .
May . . . . . . . . . . . . . . . . .
June .................
July .................
August • . . . . . . . . . . . . .
September (e t.) .....
82,110,246
22,870,471
According to these figures production in Kansas and
Oklahoma in the fir t nin months of this year increased 27.8% over the ame period in 1919. The average daily pro<lucti n for the nin months, or 273
days this y ar was 384,547 barrel , which is compared with 301,876 barrels, as the daily average production for the 272· <lav-; of the fir--t nine months of
bst y ar.
A summary of d V('lopmenl op ·rations in Kan ·as,
Ukiah ma and Wyoming show~ f wer w ·lls complctccl
pt mb r than in the pre ious month r in th
in
corr ponding month last y ar, but on the whole the
fewer wells this Sept mber brought 2,562 barrels more
f daily new production than the August report shows
and 8,641 barrels more of daily production than was
recorded for September, 1919. The following shows
the development operations:
Wells
Completed
Kansas ........ 262
Oklahoma ..... 742
Wyoming.. . . . . 44
Sept., 1920 . . .. 1,048
Aug., 1920 . . ... 1,135
pt., 1919 . . .. 1,117
Bbls. Daily New
Production
61,876
3,630
Rigs and
Drillings
600
2,031
668
83,917
81,355
75,296
3,099
3,323
2,606
18,411
Crud oil price w re practically unchanged in
September. The situation, however, was complicated
by efforts to adjust prices to the recent advance in
freight rates, refiners in the Mid-Continent field being handicapped by competition of pipe lines which
are not affected by ihe freight situation. Efforts to
adju t this situation are as yet unsuccessful. Gasoline
continues in active demand with refiners meeting requirements, though a slump in the automobile demand i believ d to be near at hand.
MINING.
Coal.-The reports from the various fields tell of
gr at activity in production of bituminous coal to meet
winter requirements, as well as railroad co-operation
for distribution. The estimated production of bituminous coal in the United States for the first 228 working days of the calendar year (to September 25) place
the total mined at 392,747,000 tons, as compar d with
341,276,000 ton in th same time last year and 436,936,000 ton min d in the first 22 working day of
1918. The daily average for the la t w ck for which
a · mplete r p rt i available ( ptemb r 25) was
1,969,000 ton , or 11,817,000 ton for the week. Efforts are making to increase the daily output to over
2,000,000 tons and thus bring the weekly production
to above 12,000,000 tons.
\i\Thile the figures indicate that production in 1920
is 51,471,000 tons ahead of 1919, it is also remembered
that last year consumption exceeded production and
there was a net draft on stocks of something like 40,000,000 ton for that year.
Production of bituminous coal in the states which,
wholly or in part, are in the Tenth Federal Re erve
Di trict, ba ed on railroad hipments, are given in net
ton for the m nths of July and August and for the
first thre -quarters of 1920, a,_ follows:
July
Colorado .. . . . ...... .
Kansas ............. .
Missouri ....... ... . .
New Mexico ........ .
Oklahoma .......... .
Wyoming .......... .
August Eight Months
861,000
460,000
467,000
282,000
324,000
818,000
886,000
367,000
438,000
297,000
337,000
909,000
6,129 ,000
4,344,000
3,832,000
2,274,000
2,676,000
6,436,000
Total tomi . . . ......... 3,192,000
3,234,000
26,691,000
W' ·kly n·1 orts how that th" mine, of Mi·. ouri an<l
Ul lahoma wcr-- op rat cl in S pt mbcr at ab ut 75%
of full apacity, while the Kan a mine were op rated at 55.5% of full capacity. The following repreresent the p rcentage of time lo t in th three
weeks of September for which full reports are at
hand:
Missouri
Transportation disability ... 7.3%
Labor shortage . . . . . . . . . . . . 4.1
Strikes . . . . . . . . . . . . . . . . . . . 0.2
Mine disability . . .......... 13.3
Kansas
18.9%
7.8
0.5
16.9
Oklahoma
11.8%
2.8
0.1
4.4
A oal strike was inaugurated in th Mc lester field
of klahoma October 15, over pending controversi s,
th ext nt f which annot at this time be foreca. t.
The r tail price of coal has advanc <l g n rally
through ut the di trict to meet the increased transportation charge , and, with the recent increase due
to the latest wage awards, bituminous coal has reached a higher price than wa reached at any time during
the war. Retail prices of bituminous coal at Kansas
City the first week in October were $10.00@1 l.SO for
the best grades of lump. Semi-anthracite was selling
at $16.50, Arkansas anthracite at $20.00, briquettes,
$16.50. Denver prices on bituminous lump were
$11.50, nut $11.00, Rou tt County lump $12.50 and
outhcrn bituminou 50c le .
Lead and Zinc.-Very ncouraging hipping condi•tion marked the month of eptember, according to a
review of the Joplin district covering operation for
that month. From a hipment of 10,150 tons per week
in the month of Augu t, there was an increase to 12,
732 tons per week in September. Calamine ores increased from 170 ton per week to 205 ton per week
in eptember. Lead ores increased from 1,610 tons
to 2,122 ton in September. These increa e in hipm nt had a v ry h lpful effect upon the growing ur
plu tock. 'I her wa a r ducti n of urplu to k of
urplu
3,000 tons during Sept mber, bringing th
tock down to 30,000 ton at the end of the month.
There is approximately 27,000 tons of sold stocks it,
1
THE MONTHLY BULLETIN
the district. Lead ore stocks opened the month at
500 tons and closed at 550, which compares with 200
tons at the beginning and 250 tons at the end of the
corresponding month in 1919.
There were some wide ranges of zinc ore prices
during the month, the variation running from $50 as
a maximum base to $40 as a minimum base. The
majority of the tonnage sold ranged around $45 for
the last two weeks of the month. Calamine ores
showed little change, the base price being $30 to $35.
The average price of all blende ores for the month
was $46.20; the average for calamine ores was $35.
This compares with $43.11 for blende and $28.93 for
calamine in 1919.
'rhere was also a severe drop in the price of lead
ores, the price tumbling from $110 at the beginning
of the month to $80 at the close, a decline of $30 per
ton within th four week period. This decline of approximately 30% within th irt.y days proved a s v re
handicap to mining- operators, as th y had been ckpending upon th lead sales to keep operations going.
'rhe drop in pri cs was attributed to hnportations of
lead ore from Australia ancl Mc.·ico, th imports ag-g-regating 30,000 tons during the last. two month:--.
The average price for all lead ores sold <luring the
month was $94.46 as compared with $72 in 1919.
The drop in prices of both zinc and lead ores is
taken to mean a further curtailment of ore production
during the month of October. Every possible element
for curtailment is being brought into play and it.
would not be surprising to see 2,000 tons cut off the
production list during the month. There is some anticipation of reductions in mine supplies, the likely
reduction. coming in cotton and rubber belts, powder
(which was put up another $1 per ton last month),
steel and mine supplies of a general natur . Whether
or not this will be sufficient to meet. the reduced cos.,t
of zinc ores is not yet manifest..
Colorado Metal Mines.-Therc wa~ comparatively
little change in the metal mining industry during Ser tember. The local railroads are inclined to make concessions in the way of keeping the rates on ore and
concentrates to the smelters where they were before
the recent increase, and it is hoped by the mining
interests, that the Interstate Commerce Commission
will do the same with regard to manganese and other
ores which are shipped out of the state. There is a.
feeling of uncertainty, however, in regard to what wil1
be done in this matter and production is falling off
slightly.
LUMBER AND MATERIALS.
The situation in the lumber industry at this time is
unusual and almost unheard of. Home building has
materially diminished and the movement of lnmber
through the retail yards has been much curtailed. A
considerable volume is moving for repairs and sundry
purposes in a small way but. the demands for housing
are not being upplied. The country yards are experiencing a larger trade proportionately than the city
dealers, the consumption largely going to other than
home building.
Reports from over the district say that the wholesale market is seriously demoralized, and in fact there
seems to be no market. Lumber prices have been in
process of adjustment to lower levels for some time,
and in many instances reductions have been as much
as 25% to 30% from the peak prices in April and
May of this year. But dealers are not buying even at
the reduced prices. And there is a strange psychological phenomena which, lumbermen say, always appears
on a down market in the lumber industry. When
prices start down both dealers and consumers stop
buying and do not resume until prices start up.
Manufacturers and wholesalers, however, are taking a hopeful view of the f nture. They say that.
bountiful crops in this territory indicate that the year
1920 will demand much lumber for. building purposes.
and while affirming that lumber is not going back tu
pre-war prices, they believe the public will proceed
with th necessary building 011 a scale not h<'rctof n·
t1n<krtaken, th us indicating- that 1here sho uld be· ;,
lrnymg movement. in the lattC'r da:s of this year f(ir
next year's supply.
The car situation in the luml><'r r
improved, particularly in the Sonth.
.gi011i.;
ha s 1,e ·n
Conditions with respect to brick have apparently
not changed, due to high priced coal, high labor costs
and' shipping troubles. Still many of the material
producing firms in this district, realizing that hig-11
cost of all building materials has held back comtruction work, are attempting to adjust prices in the hope
of stimulating building.
BUILDING.
The Septemb r reports on permits issued in cities of
this district show proportionately larger cl creases i11
building activity than were shown by the August. reports. The reports which are summarized in the following table indicate the extent of the slump in construction in September:
Pe1·mits
Kansas City, Mo........... 328
Omaha, Neb ........... . . 109
Tulsa, Okla. . . . . . . . . . . . . . 152
Denver, Colo. . . . . . . . . . . . 318
Oklahoma City, Okla. . . . . 110
Wichita, Kans. . . . . . . . . . . 172
Topeka, Kans. . . . . . . . . . . . 50
St. Joseph, Mo. . , . . . . . . . . 64
Okmulgee, Okla. . . . . . . . . . 42
Kansas City, Kans........ 47
Cheyenne, Wyo. . . . . . . . . . 34
Colorado Springs, .Colo.. . . 59
Muskogee, Okla. . . . . . . . . . 18
Lincoln, Neb. . . . . . . . . . . . . 39
Pueblo, Colo. . . . . . . . . . . . . 51
Joplin. Mo. . . . . . . . . . . . . . .
8
September, 1920 . . . . . . . . 1,601
September, 1919 . . . . . . . . 1,875
Nine Mos., 1920 ... . ..... 16,247
Estimated
Cost
$ 582,300
487,600
477,385
384,650
352,309
254,160
170,095
118,437
]03,675
73,655
54,824
54,792
51,335
48,395
24,960
3,820
Pct. Gain
or Loss
-72.5
-53.4
03.8
-42.4
-66.6
-25.9
42.2
1:3.5
-73.9
-71.3
-32.3
12.4
220.8
-65.9
-83.1
-80.1
$ 3,242,292
-53.4
6,960,880
67,172,517
34.3
While August and September building permit.
showed lo ses as compared with the same months in
1919, building operations for the first nine months of
1920 were still ahead of the corresponding nine month s
of last year.
8
THE MONTHLY BULLETIN
Statement of Condition
FEDERAL RESERVE BANK OF KANSAS CITY
Including Branches
At Close of Business
Oct. 8, 1920
Oct. 15, 1920
RESOURCl 1~S
685,775.00 $
66'1,f,%.0O
( ;oJd Coin and CcrLificateH .... $
Gold S<~ttlemcnt Fund F. R.
Board .................. . 20,692,598.52
25,686,122.6:1
Gold with F. R. Agent ...... . 40,979,440.00
41,060,840.00
4,703,192.20
Gold Redemption Fund ...... .
4,187,792.20
4,297,066.08
4,156,738.08
Gold wfrh Foreign Agents ... .
1,859,664.70
Legal Tender Notes, silver, etc.
1,929,749.45
Bills Discounted:
Secured by Govt. War Obligations ............... . 38,180,031.42
All Other •.............. 71,613,887.80
3,159,630.03
Bills Bought in open market ..
U. S. Govt. Bonds ........... . 8,867,900.00
U. S. Cert. of Indebtedness .. . 12,825,500.00
885,071.22
Bank Premises . . .......... .
Uncollected Items and other
Deductions from gross deposits .................. . 73,627,946.33
5% Redemption Fund Against
915,590.00
F. R. Bank Notes ........ .
295,075.30
All Other Resources ........ .
35,735,929.17
70,990,710.63
2,478,430.05
8,867,900.00
12,825,500.00
885,071.22
72,947,653.30
915,590.00
309,925.75
Total Resources .......... $283,588,368.60 $283,642,527.48
At Close of l3usiness
Oct. 15, 1920
Oct. 8, 1920
LIABILITIES
Capital Pairl In .............. $ '1,605,'160.00 $ 4,G04,700.00
Surplus . . . . . . . . . . . . . . . . . . . .
8,395,2117.87
8,39r>i267.87
Government Deposits. . . . . . . .
1,987,356.50
2,607,261.60
Due to Members, Rcsm·v(' Ac1
count . . . . . . . . . . . . . . . . . . . '76,358,220.15
78,118,743.21
Other Deposits . . . . . . . . . . . . .
760,297.67
855,824.34
Deferred Availability Items.. 62,296,282.77
64,016,458.58
F. R. Notes in Actual Circulation . . . . . . . . . . . . . . . . . . . . . 110,566,225.00 111,393,525.00
F. R. Bank Notes in Actual
Circulation . . . . . . . . . . . . . . . 15;649,100.00
15,519,600.00
All Other Liabilities . . . . . . . . .
3,070,178.64
3,231,156.85
Total Liabilities ......... $283,588,368.60
OTHER TOTALS
Total Gold Reserves ....... ; .. $ 71,358,071.80
Total Earning Assets. . . . . . . . 134,646,949.25
Total Gross Deposits ......... 141,402,157.09
Contingent Liability as Endorser on Bills Rediscounted with other F. R. Banks.. 40,165,977.64
Ratio of Total Reserves to Net
Deposit and F. R. Notes Liabilities Combined . . . . . . . .
41.0%
Ratio of Gold Reserve to F. R.
Notes in Actual Circulation
After Setting Aside 35%
Against Net Deposit Liabilities . . . . . . . . . . . . . . . . . . . . .
44. 7%
CLEARINGS
Total Clearings for week. . . . $266,424,219.64 $267,231,514.81
Total Number of items handled
1,147,575
1,152,594
$283,642,527.48
$ 75,756,067;91
130,898,469.85
140,598,287.76
'13,063,438.57
43.3%
. 48.4 %
@FedFRASER