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MONTHLY
REVIEW
Agricultural and Business Conditions
TENTH FEDERAL RESERVE DISTRICT
VoL.
22,
No.
FEDERAL RESERVE BANK OF KANSAS CITY
II
OCTOBER
2.9, 1937
Business in the Tenth Federal Reserve District
SEPTEMBER 1937
~OMPARED WITH SEPTEMBIER 193'
%
i
-·-----L--.,
Denver•
COLO.
% INCREASE .
DECREASE
10 20 30 40
40 30 20 10
I
I
·--------:• KANSA
I
•
)(ANS.
I
•
·-··-··-··-··-·--...-l---
I
•••••
•
••
••
Financial
%
% INCREASE
DECREASE
40 30 20
10
10 20 30 40
•••
••
•
••
•
-·
. F. R. Bk. Clearinp_
_)(em.
Bk. LoaDl-
_ )lem.
Bk. Inn•t.-
_ Demand Deposita_
-Life Ina. Sala-
Trade
_ Wboleule Sales_.
--Retail Salea_
...Dept. Store SaJea_
I
_Lumber Sales._
I
Markelin••
_ _Wheat__
-l,S
_ __Corn _ _
55 ______ oata ____
____cattle__
I
The value of construction
awards is nearly a third under
the same month last year. Department store sales in September were 4 % above last year while
for the year to date they are 6%
higher. Live stock slaughter continues low. Rainfall in September
was 33 % below normal.
Farm income is 30 % above a
year ago. Other favorable aspects
of the situation include good life
insurance sales, large output of
lead and zinc, crude petroleum,
and flour. Bank loans continue to
increase, but bank . investments
tend lower.
BUSINESS
INDICATORS
__ _Bank Debita __
I
Many lines of activity are
slower in recent weeks. While
the year to date is still appreciably above the same period last
year, the advantage of the current month over a year ago is
less marked. Prices are distinctly
weaker. Hogs are the lowest since
April, and cattle, corn, wheat, cotton, and most metals are lower.
9 MOS. 1937
COMPARED WITH 9 MOS. 193'
I
_ ___Calvea _ _
■
---Sheep _ _
_ _ ..Hop _ _
Production
-·-••
_ _ Flour_ _
I
•••
-Cattle Slausrhter_
_ _Calt Slaughter __
-Hoar Slaughter_ _
_ Sheep Slaughter_
_ Crude Petroleum_
- Bituminoua CoalZinc Ore Shlpmenta
+93
Lead Ore Shipmenta
Con,truction
_Total Awards_
__ Rea. Award.I_
_Value of Permfta_
Mi•cellaneou,
..61
_ _Rafnfal1Caah Farm Income.•
I
•
_Emplo:,menL_pay RoU._
•ll'or pmlOUI month
-61
I
I
-·
•
•• ••
I
-·
•
••
•
••
••
••
■
•
2
REVIEW OF AGRICULTURAL AND BUSINESS CONDITIONS
Member Bank Operations
Principal items of condition of the Federal Reserve Bank of Kansas City and branches:
Commercial loans at reporting member banks in
Change from
the Tenth District, following a decline from the midOct. 20 Sept. 15
Oct. 21
1937
1937
1936
dle of August to the middle of September, have since
(In
thousands
of
dollars)
increased and in the third week of October are close Total reserves ___________________ 301,208 -12,423 +48,322
to the year's high level of ten weeks earlier. At the Bills discounted _ _ _ _ _ __
695
+ 171
+ 542
Bills purchased _______________________
79
-8
-8
same time, holdings of United States Government Industrial
advances _ _ _ _
503
-77
-347
obligations and of "other" securities showed a fur- Commit. to make indust. adv. ______
117
-3
-235
U. S. Government securities ________ 124,128
Zero -1,727
ther decrease, with the result that total loans and Total
resources _______ 470,880 -17,326 .+48,891
investments continued to decline. The volume of F. R. notes in cir culation _________ 165,707 -1,055 +11,069
loans is 20 per cent larger than a year ago but in- Member bank reserve deposits ____ 245,465 -9,613 +28,690
Dollar volume of check collections declined further
vestments are now 7 per cent smaller.
Further declines in interbank and other demand in September although a small increase usually ocdeposits were accompanied by a decline in reserve curs in that month. Dollar volume was 6 per cent
balances with this bank during t}:le five weeks ended greater than in September last year.
Check collections through this bank and branches:
October 20. Balances carried with domestic banks
ITEMS
AMOUNT
were also reduced somewhat. Adjusted demand de1937
1936
1937
1936
posits are slightly larger than a year ago but interCTn thousands)
bank deposits are 12 per cent and correspondent bal- September _______ _ 5,938
$ 949,099
5,664
$1,007,276
August ______________
963,467
5,621
1,020,468
5,865
ances with domestic banks 33 per cent lower.
Nine months ___ _ 53,888
8,638,213
52,688
9,091,508
Principal items of condition of 51 member banks:
Change from
Oct. 20 Sept. 15
Oct. 21
1937
1937
1936
(In thousands of dollars)
Loans and investments-totaL_ 707,716 -12,119 +15,517
Loans-total - - - --- - - 288,805
+ 1,967 +48,200
Coml., indust., agric~ - - - 179,393
+ 1,394
•
Open market paper _ _ _ _ 25,399
-854
•
To secur ity brokers and dealers
4,461
+3
-172
Othertopurchaseorcarrysecur. 14,142
-146
•
Real estate loans 20,384
+431
+2,809
Loans to banks_ _ _ _ _
977
+171
-1,707
All other loans _ _ _ _ _ 44,049
+968
•
Investments-total ________ 418,911 -14,086 -32,683
U. S. Govt. direct obligations __ 250,1 46 -15,965 -12,822
Oblig. guar. by U. S. Govt.____ 49,576
+5,139
-525
Other securities _____________ 119,189 -3,260 -19 ,336
Reserve with F. R. Bank ____________ 168,652 -8,027 +23,296
Balances with domestic banks __ 189,953
-9,423 -91,745
Demand deposits-adjusted ___ 492,119 -12,906
+1,614
Time deposits _ _ _ _ _ _ 147,203
+745
+1,014
U. S. Govt. deposits______________ 11,279 -1,507 -11,587
Interbank deposits _ _ _ __ 356,152 -15,722 --47,967
*Comparable figures not available.
Reserve Bank Operations
Federal Reserve note circulation of this bank has
risen slightly further, reaching a new high level of
168%. million dollars at the turn of October when the
demand for currency is normally at its highest point
during the month. Circulation continues about 7
per cent above a year ago.
Following a reduction of the rediscount rate of
this bank to 11/2 per cent early in September, holdings of bills discounted for member banks have increased somewhat althoqgh the volume of discounts
is stilJ small. Since January, 1934, discounts have
not risen above a million dollars. There has been no
change in total holdings of Government securities
since last April.
Bank Debits
Debits to individual accounts by banks in reporting centers declined seasonally in September. Payments by check for September were 12 per cent
larger and for the first nine months of the year
nearly 15 per cent larger than in the corresponding
periods of 1936.
Payments by check in thirty cities:
Albuquerque, N. Mex. __
Atchison, Kans. _________ _
Bartlesville, Okla. ______ _
Casper, Wyo. _ __
Cheyenne, Wyo. ________ _
Colorado Springs, Colo.
Denver, Colo. _ __
Emporia, Kans. __________ _
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. ______________
Change from
Sept.1937 Aug.1937
Sept.1936
(In thousands of dollars)
14,326
-19
+2,544
3,697
+58
+468
33,962
- 3,467
+8,019
6,447
+392
+424
9,136
+37
+2,064
14,720
+1,146
-713
171,113
+2,130
+14,397
3,466
-514
+348
11,686
-2,267
+ 1,926
2,564
-205
-282
4,418
+826
+769
1,991
+27
+592
12,153
- 1,172
+ 129
2,661
-202
+ 271
10,685
+577
+1,120 ·
14,290
-774
+1,547
342,576
-32,817
+35,639
3,689
-198 ,
+434
28,408
+353
+726
8,281
+ 589
+ 790
106,032
+3,500
+21,592
2,770
+295
+26
156,636
--4,510
-1,428
3,786
+245
+110
17,373
+416
+3,976
9,647
-2,343
-33
28,045
-360
-558
14,332
-4,539
- 1,244
152,570
--4,476
+3.5,765
45,337
-2,561
+4,187
District, 30 citi~s______ 1,236,797
--49,833
United States, 141 cities 33,359,763 +1,473,994
+133,555
+118,201
FEDERAL RESERVE BANK OF KANSAS CITY
Trade
Wholesale sales and collections reported by the
Department of Commerce for this District:
DEPARTMENT STORE SALES
Despite the slowness of the fall buying season in
getting under way, dollar volume of sales at reporting department stores in this District showed about
the usual seasonal increase in September. However,
sales were only 4 per cent larger than a year ago
while prices are about 8 per cent higher. In the preceding month, sales · had shown an increase of 7 per
cent over last year and for the year to date they show
an increase of 6 per cent. Retail prices, reflecting the
continued decline in wholesale prices, declined in
September for the first time in more than a year,
according to the Fairchild Retail Price Index.
Stocks of merchandise increased seasonally in September but their value is only about 6 per cent larger
than a year ago. Collections on open accounts averaged 41.4 per cent of receivables in September this
year and 41.3 per cent last year, while installment
collections averaged 12.8 per cent and 13.5 per cent,
respectively.
Department store sales and stocks in leading cities:
SALES
No.of
Stores
Denver _____ 4
Kansas City__ 4
Oklahoma City 3
Omaha ___________ 3
Tulsa ___________ 4
Wichita ________ 3
Other cities __ 20
District __________ 41
STOCKS
Sept. '37 9 Mos. '37
Sept. 30, '37
comp. to comp. to
comp. to
Sept. '36 9 Mos. '36 Mo. Ago Yr. Ago
(Per cent increase or decrease)
+1.8
+6.8
+4.1
+9.9
-1.6
+6.2
+6.9
+0.1
+10.1
+4.5
+8.o
+6.2
+o.4
-1.2
+1.1
+9.7
+18.8
+10.6
+9.6
+1.7
+ 10.3
+ 14.9
+ 2.6
+ 11.1
+6.0
+4.8
+7.6
+3.1
+4.2
+6.9
8
+6.1
+6.8
WHOLESALE SALES
The value of wholesale sales in this District rose
about 11 per cent in September, sales of drugs increashig 16, furniture 20, groceries 11, hardware 13,
and paper about 4 per cent. Sales have recently begun to show a rather marked improvement over last
year, September -sales showing an increase of better
tl!an.15 per cent in comparison with an increase of
only 7 per cent for tl?,e preceding month and for the
first nine months of 1937 over 1936.
SALES
Sept. '37 9 Mos. '37
COLLECTIONS*
No. of comp. to comp. to Sept. Aug. Sept.
Firms Sept. '36 9 Mos. '36 1937 1937 1936
(Per cent change) (Median percentages)
Drugs _ _ _ 9
+ 15.4
+ 5.4
83.4
88.2
80.5
Furniture ____ 3
+9.2
+7.4
47.2
44.6
46.4
Groceries __ :_ 6
+13.6
+7.2
100.0 100.0 100.0
Hardware ______ 4
+20.8
+2.3
50.5
62.1
46.8
Paper _ _ _ 3
+16.7
+10.7
68.6
62.6
69.7
All other lines 11
+ 15.1
+ 19.9
67 .5
61.0
61.0
District _______ 36
+15.2
+7.0
73.5
71.4
77.7
*Collections on amounts receivable at beginning of month.
Crops
Crop production in the District this year, while
varying considerably from state to state, is substantially heavier than in 1936 and the production of
wheat, rye, grain sorghums, cotton, and all fruits
compares favorably with the average amounts harvested from 1928 to 1932. The corn crop, however,
was less than half of normal, partly the result of a
below normal acreage, and other crops range from
10 to 25 per cent below average.
Crop estimates of the Department of Agriculture
for the seven states, all or parts of which comprise
this District :
Oct. 1
1937
Winter wheat, bu. _____ _
Spring wheat, bu, _________
Corn, bu. _ _ _ __
Oats, bu. _ _ _ __
Rye, bu. _ _ _ __
Barley, bu.
Grain sorghums, bu. ____ _
Tame hay, tons _ __
Sugar beets, short tons_
Cotton, bales
White potatoes, bu. _____ _
Dry beans, 100 lb. bags __
Tobacco, lbs. ________________ _
Apples, bu. _ _ __
Peaches, bu. _______
Pears, bu. _ _ __
Grapes, tons _ __
Final
Final
Aver.
1936
1936
'28-'32
(In thousands of units)-324,184 231,726 162,994 326,136
10,408
7,689
9,106
9,506
270,654 104,037 260,533 675,646
152,973 107,033 186,753 176,977
5,988
4,790
7,209
3,820
29,449
19,220
29,701
38,839
40,836
18,258
31,674
39,137
8,676
7,602
10,887
11,032
3,355
3,502
2,976
4,062
1,358
709
819
1,427
33,588
31,727
40,689
40,452
2,020
1,959
2,400
2,260
4,995
2,777
4,150
6,836
9~92
3~48
8~10
7~66
4,709
1,551
3,639
2,339
1,315
396
1,366
1,011
23
12
20
21
Weather conditions have generally been ideal for
harvestjng operations but unfavorable for the maturing of late crops. Oklahoma has had norinal rainfail
the past two months and September rainfall was above
norrrial in New Mexico, but elsewhere in the District
A weakening in wholesal~ prices since the latter it continues much below normal. Drilling of wheat,
part of September has carried the all-commodity which had largely been discontinued early in October
index of the Bureau of Labor S~atistics .to its lowest in the western part of the winter wheat belt because
point since J anu·ar_y in th~ week ended Octob~r 1(?. of a ralher se.riou~ defide:ricy of~both surface ·a nf:.
Wholesale price·s of farrtfpi"oducts and foods showed s_l_!_~_soil__!!lgJst~;r_~, h~~LJ?..een_ J~.~µm~q_J_q)Jowing iecent
t~~.mmit _pfo~ou~c~~ :qe~ifoe·s: : ~il~-]iri~~s .~f ~q~t. . rains . .Early sown wheat is·.a:good stand and late.sown..
com1n6dities
•·
.. . . ·afe-·sofnewharlower
.- . . . "'.;' ... :· , ,• ,. .. ~than
-,•. .. a··morith
. .. . . . •· ·a_g•·o"·
' w}:ieat,,i-ruch 6£whiph)1ad bel:ln plaiited·in dry:soii a'ricf
th~y•·a verage about 5 per cent higher-than~ year ·ago. has noFgerminated~ ·should n.ow rria'.ke·rapid' gro-wth. ·.
REVIEW OF AGRICULTURAL AND BUSINESS CONDITIONS
4
Rainfall as reported by the Weather Bureau:
Sept. 1937
Total Normal
COLORADO
Denver _ __
Leadville _ __
Pueblo _ __
Lamar _ __
Garnett _ __
Steamboat Spgs._
KANSAS
Topeka _______________ _
Iola _ _ __
Concordia ___________ _
Salina _ _ __
Wichita
Hays _ _ __
Dodge City ______
Elkhart _ __
Goodland _ __
.56
.68
.35
.23
.84
.75
9 Mos. 1937
Total
Normal
(In inchesr11.72
.99
8.98
1.39
21.96
15.36
10.15
.75
5.65
1.23
5.42
13.88
.75
5.16
5.86
17.70
1.86
21.39
.43
2.09
1.64
.88
1.80
1.62
.84
1.77
.48
3.82
4.85
2.60
2.72
3.09
2.27
1.90
1.74
1.56
15.93
30.77
16.53
14.92
23.19
15.69
11.17
5.99
11.14
28.63
31.40
22.96
23.07
25.13
20.51
17.91
14.47
16.05
.82
.21
2.83
3.92
4.56
3.92
24.24
21.41
31.46
29.80
31.03
35.61
.80
1.11
2.79
1.55
.97
.89
.65
.93
3.21
2.98
3.09
2.96
1.70
1.40
1.36
1.26
18.67
16.76
18.18
21.25
14.21
10.75
8.06
9.90
23.60
24.04
24.58
23.15
17.15
16.44
14.19
16.39
2.47
2.71
1.35
1.65
1.45
1.22
10.91
14.56
6.76
13.92
10.56
7.18
7.06
1.36
2.90
2.40
3.48
4.40
3.62
3.32
3.46
3.05
3.18
2.91
3.06
2.80
31.86
31.23
17.66
30.20
22.10
24.16
15.10
30.67
33.55
24.92
27.31
22.27
24.96
21.11
.49
.67
.11
.50
1.20
1.24
.92
1.27
10.69
13.40
13.52
12.52
12.96
12.33
9.99
12.72
MISSOURI
St. Joseph ________ _
Kansas City _______
Joplin _ _ __
Cash wheat prices had strengthened late in· September but are lower in October, influenced by increased offerings of Russian grain abroad, beneficial
rains in sections of the Argentine wheat belt, and
a continued slow demand from importing countries,
partly the result of unusually high ocean shipping
rates. Cash corn prices are sharply lower, adjusting
to a new crop basis.
Cash grain prices at the Kansas City market:
Oct. 20 Sept. 30 Aug. 81
1937
1937
1937
No. 1 hard, dk. wheat, bu. $1.01¾ $1.12¾ $1.06
No. 2 mixed corn, bu. __ _
.591h
.70
1.00
No. 2 white oats, bu, ______ _
.311h
.321h
.30
No.2rye, bu. _ __
.73
.79
.75
No. 2 barley, bu. _ __
.54
.60
.58
No. 2 white kafir, cwt. ___
.98
1.14
1.54
NEW MEXIOO
Clayton _ __
Santa Fe _ __
Farmington -------·
OKLAHOMA
Tulsa
McAlester _____ _
Oklahoma City __ _
Pauls Valley ____ _
Hobart ---------Enid _ _ __
Woodward _______ ·
$1.201h
1.09¼
.45½
.88
.90
1.82
Live Stock
NEBRASKA
Omaha _ __
Lincoln _ __
Norfolk _ __
Grand Island ___ _
McCook _ __
North Platte ______
Bridgeport
Valentine _ __
Sept. 30
1936
MARKETINGS
Marketings of calves, hogs, and sheep increased
further in September but cattle marketings declined.
Cattle receipts were also smaller than in September
of last year and hog receipts were a third below a
year ago. Receipts of cattle were 10, hogs 62, and
sheep 9 per cent below the September average for the
past ten years but calf receipts were 18 per cent
above the average. It was reported that virtually all
cattle shipped into the Blue Stem grazing sections
of Oklahoma and Kansas had been marketed by the
first of October, fully two weeks ahead of the expiration of pasture leases on October 15.
Live stock receipts at six markets in the District:
WYOMING
Cheyenne _ __
Casper _ __
Lander _______________ _
Sheridan
Grain Marketing
Denver ________
Kansas City ____
Oklahoma City
Omaha ____
St. Joseph _______
Wichita _______
Cattle
58,659
160,299
45,699
166,262
35,961
24,982
Calves
7,245
42,239
23,776
21,346
7,770
6,162
Hogs
18,931
83,820
27,314
81,691
43,920
19,660
Sheep
527,839
125,650
11,959
204,171
78,462
9,802
Marketings of grain were generally in small vol- Sept. 1987 -- ··--481,862
108,538
275,336
957,883
___
507,828
102,256
231,338
746,306
ume in September, receipts of wheat representing Aug.1937
Sept. 1936 ____
493,455 108,144
400,484
886,295
but 62, corn 18, oats 10, rye 74, barley 29, and kafir 9 Mos. 1937___ 3,239,152
668,496
2,638,379
5,660,098
9
Mos.
1936
______
·
3,286,663
596,173
3,876,277 6,362,382
90 per cent of the September average during the
past ten years. Wheat marketings declined further,
PRICES
reflecting in part the unusually heavy movement of
While· there has been a further advance in finished
the two preceding months and some holding by pro- cattle prices, the bulk of cattle values tends ·1ower.
ducers for better prices.
Prime steers because of their extreme scarcity
Receipts of grain at five markets in the District_: reached $19 a hundred at Kansas City in the first
Wheat
Corn
Oats
Rye Barley Kafir week of October, the highest price at this market
( In thousands of bush e ~ - since December, 1919, and within 25 cents of an allHutchinson ____
668
1
1
1
Kansas City____
4,603
244
386
45
34
69 time October high of $19.25 in 1918, but most f~d"
206
700
94
115
Omaha ------·1,531
steers are bringing only $15 a hundred or les~ ·and
St. Joseph ______
584
96
206
12
9
the great _bqlk of cattle is selling at a figure ·s ubstan. .
9
2
1
Wichita -------975
tially below this, the prjce spreacl amounting to ·as
555 1,295 153
158
70
Sept. 198'7 -·- 8,361
449 . 2,851 . 496.
882
82 much as $12 or m.or~~ . ){9.g._anq ._ she~rf prjces .. Md
A~. 19.87~..···- 24,220 .
Sept. 1986 ~5,852
1,670
888
87
120
87 rallied. ip._the forepart ·_ of . September ·but .incr~ase·d-9 Mos. 1937__ 159,468
11,855 12,058 1,051
1,587
551
9 Mos. 1936~- 110,817 80,400 12,470
785
2,888 1,137 marketings resulted in a subsequent decline in prices.
--
FEDERAL RESERVE BANK OF KANSAS CITY
Hog prices have declined more than $3 from their
August high. Even so, hog prices are at the highest
October level since 1928 and cattle and lambs since
1929.
Top live stock prices at the Kansas City market:
Oct. 20
1937
Beef steers ___
Stocker cattle
Feeder cattle
Calves
Hogs _________
Sheep ___________
Lambs --------
18.00
9.50
10.50
11.00
10.00
7.00
10.25
Sept.
Aug.
Sept.
Sept. Sept.
19;:$7
1937
1935 1934
H.136
(In dollars per hundredweight)
17.25
17.00
9.75
12.00 10.60
9.25
10.00
7.50
8.75
5.40
12.00
12.40
7.35
8.60
9.50
10.50
10.00
9.00
9.50
6.50
12.25
13.20
11.25
11.65
7.65
8.25
6.50
6.50
6.00
4.50
11.00
11.75
10.25
10.00
6.65
STOCKERS AND FEEDERS
Shipments of stocker and feeder live stock to the
country showed a further seasonal increase in September. Shipments of cattle and sheep continue to
be in much greater volume than a year ago although
September shipments were smaller than in other recent years, cattle falling 17 and sheep 42 per cent
below the ten-year average. Hog shipments were
substantially smaller than a year ago and equal to
only half the ten-year average volume.
Stocker and feeder shipments from four markets:
Denver
Kansas City ______________
Omaha
St. Joseph _____________
Cattle
21,211
59,365
48,749
7,049
Calves
2,428
10,498
7,111
966
Hogs
~
2,090
1,626
1,974
Sheep
100,694
28,563
79,162
20,535
Sept. 1937 _ _ _ _
Aug. 1937 _________________
Sept. 1936 ____________________
9 Mos. 1937_ _ _
9 Mos. 1936_ _ _
136,374
132,638
109,264
700,675
573,378
21,003
17,231
19,712
93,075
81,399
5,718
5,712
24,788
35,159
71,342
228,954
199,210
192,368
765,904
720,176
According to the Department of Agriculture, the
number of cattle to be fed for market during the
winter and spring of 1937-1938 is expected to be considerably larger in Nebraska and Kansas than the
number fed a year earlier but much less than in
years of average corn product ion in these states.
Cattle feeding operations are expected to be considerably reduced from a year ago in western states
where the number fed last _year was the largest of
record. Abundant supplies and lower prices for cottonseed cake and hulls are expected to encourage
larger feeding operations in Oklahoma.
A considerable increase in lamb feeding operations
except in western states is . also indicated for the
1937-1938 feeding season. It is thought that the
number of lambs to be fed jn the Scottsbluff area of
Nebraska and Wyoming will be somewhat larger
than last year and that some increase over the small
number fed last year is probable in ·other parts of
. Nebraska. While .t he Iamb, feeding situatfon in .Colo..:
radoA-s --yet uncert,ain; early ~fo--October it ~ppears
that the number to be fed will be smaller than last
5
year in the Arkansas Valley and about unchanged
elsewhere in the state. Remaining unsold supplies
of feeder lambs in Wyoming at the middle of October
are quite limited and shipments of previously contracted Iambs are moving to feed lots in heavy
volume.
RANGES AND PASTURES
Range and pasture conditions generally showed
little change in September. Dryness persists in the
western part of Nebraska, Kansas, and Oklahoma
and in eastern Colorado, with the result that range
feed in this area is rather poor. Range feed is reported
good in Wyoming, the mountain and western sections
of Colorado and in most of New Mexico. Pastures are
only fair in much of eastern Nebraska and Kansas
but ranges and pastures in southeastern Kansas and
eastern Oklahoma are somewhat better. Rain has
greatly improved feed prospects in Oklahoma and
New Mexico.
Farm Income
Cash farm income during August for the seven
states, all or parts of which are included in this District, was about 31 per cent larger than a year ago.
Continued heavier sales from the larger 1937 crops,
especially wheat, was the chief factor in this increase, but income from the sale of live stock and
its products was also larger in all states of the District except Nebraska and Wyoming. Government
payments were smaller.
Total income so far this year is about 15 per cent
above the figure for the corresponding period of
1936. By states, Colorado shows an increase of 33
per cent, Kansas 29, Missouri 10, New Mexico 11,
Oklahoma 27, and Wyoming 8 per cent, while in
Nebraska there has been a decrease of 6 per cent.
Income estimates of the Department of Agriculture:
Colorado _____________________
Kansas ________________________
Missouri __________________ _
Nebraska _________________ _
New Mexico ______________ _
Oklahoma _________________
Wyo ming -------------------
Live stock
and
Govt.
Crops Products Payments
Total
--(In thousands of dollars)
6,362
5,759
62
12,183
17,491
17,320
98
34,909
9,134
19,387
879
29,400
9,615
16,274
100
25,989
661
1,807
44
2,512
10,095
8,338
140
18,573
560
2,487
30
3,077
Aug. 1937 -------------------- 53,918
July 1937 -------------------- 105,977
Aug. 1936 ---------------25,517
8 Mos. 1937__________________ 266,939
8 Mos. 1936_______________ 163,936
71,372
54,189
68,313
473,681
487,148
1,353
2,600
3,089
69,284
52,261
126,643
162,766
96,919
809,904
703,345
Prices received by farmers are now somewhat
lower than a year ago but prices_paid by farmers for
what they ·buy are Jiighet _s_o _that th~ ratio :of _prices
received· to--prices paid •is only 91 as compared ·with-.
98 a year ago.
6
REVIEW OF AGRICULTURAL AND BUSINESS CONDITIONS
Meat Packing
Packers' purchases indicated little change in the
slaughter of cattle and calves and a moderate increase in hog and sheep slaughter during September.
The slaughter of cattle, calves, and hogs continues
much below a year ago, and that of cattle was 14
and of hogs 59 per cent below the September tenyear average. While sheep slaughter is larger than
a year ago, it is still 16 per cent below average.
Packers' purchases at six markets in the District:
Denver
Kansas City ____
Oklahoma City
Omaha
St. Joseph ____
Wichita ___________
Cattle
18,793
69,195
20,849
72,263
23,913
12,304
Calves
4,664
26,743
17,817
11,202
5,583
6,130
Hogs
18,864
76,238
23,699
68,186
38,187
18,686
Sheep
64,812
79,253
5,719
103,816
68,427
5,392
Sept. 1937 ____
Aug. 1937 ________
Sept. 1936 _____
9 Mos. 1937____
9 Mos. 1936_____
217,317
222,085
283,169
1,666,631
1,944,932
71,139
69,055
89,251
497,026
481,310
243,860
203,990
314,570
2,332,737
3,230,801
317,419
272,012
291,842
2,873,459
2,601,089
Cold Storage Holdings
output being only 3 per cent larger than last year
while output for the first nine months of the year
shows an increase of 11 per cent over that in the
corresponding period of last year.
Flour production reported by the Northwestern
Miller:
Sept.1937
120,000
634,000
189,000
205,000
1,044,000
Atchison -------------------------Kansas City _ __
Salina
Wichita ________
Other cities _ _ __
Change from
Sept. 1936
( In barrels)
-10,000
+3,000
+93,000
+56,000
-8,000
+1,000
-19,000
+15,000
-71,000
-16,000
Aug. 1937
Southwest _ _ _ _
2,192,000
-9,000
+ 54,000
United States* ______________ 6,873,000
+373,000
+301,000
*Represents about 60 per cent of total output in U. S.
Petroleum
Daily average production of crude petroleum in
the District declined about 5 per cent in September
and a further decrease appears probable in October
in order to reduce excess storage stocks now about
9 per cent larger in Oklahoma and Kansas than a
year ago. September output was about 12 per cent
larger than a year ago and 27 per cent above the
average for that month during the past ten years.
Oil production reported by the American Petroleum Institute and the Bureau of Mines:
Further contraseasonal declines in United States
cold storage stocks of beef and poultry and sharp
reductions in holdings of pork and lard occurred in
September. Stocks of beef, pork, and lard are now
more than 33 per cent below the five-year average
for this season of the year but poultry holdings are
Sept. 1937
Aug. 1937
Sept. 1936
Gross
D. Av.
Gross
D. Av. Gross
D. Av.
still 17 per cent above average. Stocks of eggs are
(In thousands of barrel~
about 26 and cheese 7 per cent above while butter Colo. _____ _
4.6
130
4.2
165
6.2
138
Kans. ____ _
166.9
191.0
6,229
201.0
6,008
6,730
is about 8 per cent below the average.
N. Mex_
76.2
114.5
3,445
111.2
2,285
3,435
United States cold storage holdings:
Okla. ___ _ 18,163
605.4
20,165
650.5 17,435
681.2
Beef, lbs. _ _ _ __
Pork, lbs. _ _ _ __
Lamb and mutton, lbs. ___ _
Poultry, lbs. _ _ __
Miscellaneous meats, lbs.
Lard, lbs _ _ _ __
Eggs, shell, cases __________ _
Eggs, frozen (case equiv.)
Butter, creamer y, lbs.___ _
Cheese, all varieties, lbs.
Oct. 1
Sept. 1 Oct. 1
Oct. 1
1937
1937
1936 5-Yr. Av.
(In thousands of units)
38,816
44,582
82,806
60,143
283,287 367,595 361,608 458,425
1,911
1,928
3,374
2,204
61,709
63,733
82,096
52,788
44,073
49,330
75,237
66,832
72,535 118,094 101,796 107,583
7,058
8,390
6,817
6,267
4,232
4,579
2,762
2,701
118,753 134,885 108,835 129,381
117,765 122,647 114,990 110,368
Flour Milling
Flour business in the southwest is dull, but greatly
improved shipping directions on flour contracts, the
volume of which is much greater than a year ago,
have enabled mills to operate at a good rate. Flour
and millfeed prices advanced in September but are
lower at the middle of October.
Activity at southwestern flour mills continued in
September at about the level of the preceding month
but is slightly lower in Octol:>er. In the last half of
1936, ·mms · had shown a rather ·substantial increase
in ··ac_tiyity: .:· ..At th~ pre~en.t
"pfoductfon .is .holcl".'
ing steady at the high level of a year ago, September ·-
·um:e
Wyo. ___ _
5 States
u. s. ----
1,741
68.1
1,721
29,207
973.6
31,690
109,867 3,662.2 116,090
65.5
1,247
41.o
1,022.4 26,130
3,712.6 90,972
871.1
3,032.4
The first important decline in stocks of petroleum
in Oklahoma and Kansas this year occurred in September, stocks falling from 129,859,000 barrels on
September 4 to 128,272,000 on October 2.
Coal
Output of bituminous coal showed a further seasonal increase in September. Production in September was only slightly larger than a year ago but for
the year to date is 6 per cent larger.
Coal output estimated from reports of the National
Bituminous Coal Commission:
Sept.1937
Colorado __________________ _
Kansas and Missouri
New Mexico ______________
Oklahoma ---~----=------·-- ·
Wyoming -------~------- ,
682,000
540,000
130,000
196,000
621,000 .
Si:x> st~tes ___:_ _____ ~------- · 1,969,000
United States _______ 38,620,000
Change from
Sept. 1936
(In tons)
+179,000
+17,000
+84,000
+13,000
Zero
. +.12,0J)0 .
- +21,000.
--:4,000
+119,000 ·
-·+6,000 -
Aug. 1937
· +4-0'S,060
+ '44,000
+4,636,000
+ 1,428,000
FEDERAL RESERVE BANK OF KANSAS CITY
Zinc and Lead
Zinc and lead shipments from the Tri-State district increased somewhat in September but shipments tend to decline in October. Production continues high. At the middle of October the number
of mines and mills operating is the highest in seven
years.
Shipments estimated from Joplin News Herald reports:
ZINC ORE
LEAD ORE
Kansas _________ _
Missouri ______
Oklahoma ___ _
Tons
14,857
4,103
25,184
Value
$ 645,890
178,397
1,094,849
Tons
2,022
499
4,046
Value
$ 152,197
37,452
303,701
Sept. 1937_____
Aug. 1937..___
Sept. 1936_____
9 Mos. 19379 Mos. 1936__
44,144
40,262
39,180
365,563
315,829
$ 1,919,136
6,567
4,989
3,408
48,719
37,296
$ 493,350
1,723,361
1,231,233
15,215,379
10,018,101
365,445
170,417
3,584,188
1,843,875
Following a rise ~arly in August, zinc concentrate
prices fell from $47.50 a ton to $40.00 and lead from
$77.50 to $67.00 in the latter part of September and
the first two weeks of October.
Employment and Pay Rolls
Employment was virtually unchanged and pay
rolls declined slightly from the middle of August to
the middle of September. Employment was about
3 per cent and pay rolls 8 per cent larger than in
September of last year.
Preliminary figures of the Department of Labor:
September 1937
per cent change from
August 1937
Employment Pay Rolls
Colorado ----------------------------------------- _______ +3.9
-2.2
Kansas ------------------------ - - -3.8
+o.1
Missouri ----------------------------- - - - -0.7
-5.3
Nebraska _ __
___ _
+1.5
-0.3
New Mexico --------------------------------------------- + 1.4
Zero
Oklahoma _ _ _ _
_ _ _ +0.1
-2.2
Wyoming ------------------------------------------- + 5.2
+ 7.0
Building
Awards for residential construction increased in
-September but contracts for other types of building
declined, with the result that total awards were 21
per cent less. Both residential and non-residential
awards were a third lower than a year ago in September although residential building this year has
increased about 27 per cent.
Construction figures of the F. W. Dodge Corporation:
37 EASTERN STATES
Residential
Total Residential
(In thousands of dollars)
2,677 .
207,072
65,590
73,448
2,333
285,104
4,110
234,271
80,670
736,691
27,938
2,308,523
21,984
2,034,189
588,181
TENTH DISTRICT
Total
Sep.t. 19,37 . ____ 7,352
Aug. 1937 ____ ·9,313
Sept. 1936 ____ 10,737
9 Mos. 1937.... 95,336
9 Mos. 1936___ 89,424
7
Following a sharp decline in August, the value of
permits issued for new construction, alterations, and
repairs in eighteen · District cities increased somewhat in September. Value of permits was 21 per
cent greater than in September of last year.
Building permits issued by eighteen cities:
PERMITS
1937
Albuquerque, N. Mex. __
Cheyenne, Wyo. __________ _
Colorado Springs, Colo.
Denver, Colo. _______________ _
Hutchinson, Kans. _______ _
Joplin, Mo. _ _ __
Kansas City, Kans. _______ _
Kansas City, Mo, _________ _
Lincoln, Nebr. _____________ _
Oklahoma City, Okla. __
Omaha, Nebr. ------------···Pueblo, Colo. _________________ _
Salina, Kans. ______________ _
Shawnee, Okla. ________ ___ _
St. Joseph, Mo. ____________ _
Topeka, Kans. _____________ _
Tulsa, Okla. _ _ __
Wichita, Kans. _____________ _
1936
71 67
71
60
541
98
27
43
203
194
194
149
96
23
18
26
82
103
260
57
74
489
61
27
38
186
146
161
158
47
18
18
44
85
118
195
September __________________ 2,259 1,989
August ________________________ 2,011 2,038
Nine months ______________ 18,313 15,984
ESTIMATED COST
1937
$
77,000
60,000
52,000
1,257,000
52,000
19,000
37,000
226,000
131,000
561,000
220,000
41,000
36,000
29,000
14,000
101,000
212,000
152,000
$
1936
103,000
98,000
66,000
563,000
23,000
55,000
30,000
169,000
63,000
587,000
229,000
21,000
22,000
8,000
41,000
231,000
183,000
222,000
$ 3,277,000 $ 2,714,000
2,473,000
33,288,000
4,411,000
29,333,000
Lumber
Board feet sales at reporting retail lumber yards
were smaller in September than in the preceding
month but were little changed from sales in September of last year. Following a substantial increase in
1936 over 1935, lumber sales this year have barely
held even with 1936.
September collections averaged 33.0 per cent of
amounts receivable as compared with a ratio of 32.2
in August and 36.2 a year ago.
Lumber trade at 155 retail yards in the District:
September 1937
per cent change from
Aug. 1937 Sept. 1936
Sales of lumber, board feet_____________________
--4.4
+0.3
Sales of all materials, dollars_ _ _
-5.0
+ 10.4
Stocks of lumber, board feet_ _ _ _
+0.2
+14.4
Outstandings, dollars ------------------------------+1.5
+29.4
Life Insurance
September sales of life insurance in the seven
states of this District were 6 per cent larger than a
year ago as compared with an increase of only 3 per
cent so far this year over 1936.
The Life Insurance Sales Research Bureau report:
Colorado
-------------------------------Kansas _____
______________________________ _·
Missouri - -------··--·--------Nebraska ------------------------·---·
New Mexico _ _ _ __
Oklahoma ------------------------------Wyoming _______ _
Seven states ---------------------------·
United States _____________________
Change from
Sept.1937 Aug. 1937 Sept.1936
( In thousands of dollars)
5,006
-353
+410
7,168
-1,132
+ 1,182
14,890
-1,538
+ 501
5,131
-209
+268
1,322
-7
+ 226
7,160
-251
+115
975
-361
-187
41,652
500,434
-3,851
--45,633
+2,515
-6,765
8
REVIEW OF AGRICULTURAL AND BUSINESS CONDITIONS
NATIONAL SUMMARY OF BUSINESS CONDITIONS
By the Board of Governors of the Federal Reserve System
INDUSTRIAL PRODUCTION
,c.-:Cl.NT
140
PC~ CENT
14 0
130
130
A
12 0
V
\
11 0
100
,~
\
90
r
)~
100
/V
A
I\ /\ I':V
\
I' V
\t'.J
....
90
\h_
80
70
60
120
110
80
70
60
50
50
1929
1930
1931
1932
1933
1934
1935
1936
1937
Index of physical volume of production, adj usted for seasonal variation, 1923-1925 average
100. By months, January 1929 through
September 1937.
=
DEPARTMENT STORE SALES
PER CENT
P£ A CENT
2so ,---,,......,....--,.--~-~-~-~-~--=
2so
200 ~ - - - + - - + - - - - 4 - - - + - - + - - - < ~ - J . . - - J 200
0
-
Ad111sl1d lo, s,osonal vanallan
-
W1ffl(Jl,J/ UOSCIIO;ad1us1m,nl
1929
1930
1931
1932
1933
1934
1935
1936
1937
Indexes of value of sales, 1923-1925 average
100. By months, January 1929 through
September 1937.
=
WHOLESALE PRICES
1'£A C!Hf
rl[~ C;=;[NT
: . : _ _ _ - , - - - - ~ - - - . - - --,-- - - , - - - - - , 110
Declines in industrial production in September and the first part of
October reduced output to the level of a year a go, and commodity prices
continued to decline. The volume of distribution to consumers was maintained at the level of previous months.
PRODUCTION AND EMPLOYMENT
Volume of industrial production, as measured by the Board's seasonally
adjusted index, declined in September to 111 per cent of the 1923-1925
average as compared with 114 in June and July and 117 in August. At
steel mills, where output in August had been at a high level, partly on the
basis of orders placed earlier in the year, activity was reduced to an average
rate of 75 per cent of capacity in September . This decline continued in
October, as new orders were in limited volume, and the rate of steel output
in the fourth week of the month is estimated at about 52 per cent of
·capacity. There were also declines in September in activity at woolen
mills, shoe factories, and at sugar refineries, and activity at cotton mills
showed little change, although an increase is usual at this season. Increases
in output were reported at sill_{ mills and meat-packing establishments
where activity recently has been at a low level. Automobile production
showed a decline from the high level of August , but in the first three
weeks of October advanced sharply as most manufactur ers began assembling
1938 models. Mineral output increased in September, reflecting an expansion in coal production. Output of crude petroleum declined somewhat
but continued in large volume.
.
Value of construction contracts awarded, as reported by the F. W.
Dodge Corporation, was smaller in September and the first half of October
than in the p1•eceding six weeks, with a moderate decline in private residential building and sharp declines in awards for other private work and
for publicly-financed work. Currently the dollar volume of private work
is about the same as a year ago, while awards for public work are in
smaller volume.
Factory employment showed little change from August to September,
although an increase is usual at this season. There were declines in the
number employed at textile mills, shoe factories, railroad repair shops, and
lumber mills. At canning establishments employment increased seasonally.
Factory pay rolls, which usually expand in September, declined substantially, reflecting principally a reduction in the average number of hours
worked by those employed. The levels of employment and pay rolls continued to be considerably above last year.
100 1 - - - - 1 - - - - - 1 - - - + - - - + - - - - f - - - i 100
90
80
70
80
50
40
30
1933
1932
1934
1935
1938
1937
Indexes compiled by the United States Bureau
of Labor Statistics, 1926
100. By weeks,
1932 to date. Latest figure is for week ending
October 16, 1937.
=
DISTRIBUTION
Distribution of commodities to consumers by department stores and
mail order houses increased more than seasonallv in Sentember. and
variety store sales showed about the usual seasonal expansion. Freight
carloadings increased by the usual seasonal amount from August to
September.
COMMODITY PRICES
The general level of wholesale commodity prices, according- to the
Bureau of Labor Statistics index, declined frnm 87..5 per cent of the 1926
average in the latter part of September to 85.2 in the midole of October.
During that period price declines occurred in most commodities traded in
on organized exchanges and in some manufactured prod,1cts. In the ten
days ending- October 25 commoditv markets were steadier. New models
of automobiles are currently being introduced at higher prices.
MEMBER BANK LOANS ANO INVESTMENTS
BIUJOHS 01 OOU.MS
8
a1LLtONI 0# OOLURS
LOANS
INVESTMENTS
II
BANK CREDIT
Excess reserves of member banks, after increasing- in September from
$750,000,000 to over $1 ,000,000,000, showed little further change in October.
Total Joans and investments of reporting member banks in 101 leading
cities declined somewhat in the four weeks ending- October 20, reflecting
chiefly a steady reduction throughout the neriod in loans to security brokers
and dealers. Commercial loans increased further.
MONEY RATES AND SECURITY PRICES
Wednesday figures for reporting member
banks in 101 leading cities, September 5, 1934,
through October 20, 1937. Loans on real estate
and loams to banks excluded.
Rates on 9-month Treasury bills in October declined to about % of one
per cent, the lowest since last Januarv. Prices of hfo·h-P-rade bonds showed
little change in Sentember and October. while prices of lower-grade bon,Is
and nf common stocks declined sharply to the lowest levels since the middle
of 1935.
@FedFRASER