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THE MONTHLY REVIEW Of Agricultural, Industrial, Trade, and Financial Conditions in the Tenth Federal Reserve District FEDERAL Vol. RESERVE BANK OF KANSAS CITY No. 21 USINESS activity in the Tenth Federal Reserve District during September was sustained at a level above that of a year ago. Retail and wholesale distribution, which had displayed some hesitancy in August, expanded somewhat more than seasonally in September with the arrival of cooler weather and maintained the previously recorded gains over last year. The value of construction contracts awarded in the District increased substantially although retail sales of lumber declined during the month. The demand for credit at reporting member banks, while still in small volume, has increased about 13 per cent during the year. The production of flour, crude petroleum, and cement, although continuing at high levels for the month during the past five years, declined slightly during September, while the production of bituminous coal and shipments of zinc and lead increased. All production lines showed an increase in output compared to September, 1935. Meat packing operations were heavier than at this time last year, with the slaughter of cattle and calves at a high level for the month. Market receipts of grain declined substantially and were much below normal for September. Receipts of live stock increased although marketings of cattle, hogs, and sheep fell somewhat below the ten-year average. The countryward movement of stocker and feeder live stock increased seasonally. Prices of wheat, cattle, and lambs strengthened in September but prices of corn weakened slightly and hog prices declined sharply. Grain prices generally advanced and live stock prices weakened the forepart of October. September weather conditions were generally favorable for the growth and maturity of late crops remaining for harvest after the extreme drought and high temperatures of the preceding three months which had resulted in considerable abandonment and had reduced prospective yields much below normal. Harvesting of late crops and the extensive preparation of seedbeds and drilling of winter grains were progressing rapidly early in October. The rains revived pastures but in much of the District the reserve of subsoil moisture as affecting next year's crops was still low. The fall growth in native pastures and the improvement in early seeded winter grains following the rains will help to relieve the feed shortage this year. B Member Bank Operations Loans and discounts of fifty-two reporting member banks in the Tenth District showed little change between September 9 and October 7 when loans and discounts were 13 per cent greater than on October 9, 1935, reflecting principally an increase in "all other" loans, which include loans to customers for agricultural, commercial, and industrial purposes. Investment holdings were enlarged 3.4 per cent during the four weeks, reflecting chiefly an increase in holdings of United States Government direct ob!igations, and on October 7 were 7.3 This Copy Released For Publication II BUSINESS IN THE TENTH FEDERAL RESERVE DISTRICT In Percentages of Increase or Decrease 9 Months 1936 Sept. 1936 compared to compared to Banking Aug. 1936 Sept. 1935 9 Months 1935 +12.8 Payments by check, 29 cities.................. - 2.3 + 3.0 Federal Reserve Bank check collections - 2.1 + 8.8 +II.9 Business failures, number........................ -2r.9 -16.7 - 4.9 +18.8 Business failures, liabilities...................... + 2.1 - r.o Loans, 52 member banks.---··················· - 0.7 +13.0 Investments, 52 member banks.............. + 3.4 + 7.3 Adjusted dem. deps., 52 member banks + 0.7 +10.4 Time deposits, 52 member banks·--······· Even + 0.4 Savings deposits, 45 selected banks·-····· + o.6 + 2.9 Savings accounts, 45 selected banks...... - 0.1 + 2.4 Distribution Wholesalers' sales, 5 lines combined ..... . + 4.4 + 7.7 + 9·4 + 8.1 Retailers' sales, 31 department stores .... +27.1 + 8.7 +28.7 Lumber sales, 158 retail yards ................ -l4.5 +34.1 - o.8 - r.9 Life insurance, written ..·-························· -13.2 Construction Building contracts awarded, value.---··· +73.2 +59-4 +71.2 Residential contracts awarded, value.... +s 5.7 -10.2 +58.0 Building permits in 18 cities, value........ -38.5 Production + 8.2 Flour._ ........................................................ . - 2.8 + 3.0 Crude petroleum........................................ - 4.9 +14.3 + 9.5 +17.8 Bituminous coal.. .. ................................... . +26.4 +23.6 +19.1 Zinc ore (shipped) Tri-State district ...... +2 5.5 + 3.6 +18.8 Lead ore (shipped) Tri-State district .... +3o.3 +29.6 +96.4 +3 2·3 Cement.--··················································· - 1.0 Grain receipts, 5 markets +29.2 -63.5 Wheat·-······················································· -52.1 Corn ............................................................ -4r.9 +65.6 +63-4 -68.1 + 3.6 Oats·-··-······················································· -66.3 Rye .............................................................. -69.0 -67.7 +30.4 -84.9 +3o.9 Barley.•-····················································· -79.5 Kafir........................................................... . -48.6 +97. 2 +55.4 Live stock receipts, 6 markets - 2.3 + 5.8 Cattle ......................................................... . + 0.4 + 0.2 Calves ......................................................... . + 6.o + 1 5.5 +3o.5 +63.2 Hogs ........................................................... . + 2.9 - 1.6 +18.5 Sheep ......................................................... . +45.6 -23.0 Horses and mules ..................................... . - r.5 Meat packing, 6 markets +21.1 +23.1 Cattle.................................•........................ - r.8 +38.8 + 7.6 Calves·-····· .. ················································ +1 3·9 Hogs ............................................................ - o.8 +31.9 +56.7 +18.8 - 7.3 Sheep ...................- - - - - - Stocker and feeder shipments, 4 markets -26.2 - 1 5.5 Cattle .......................................................... +27.2 -26.0 - 2.1 Calves·-······················································· +2 9.9 +29.1 +332.6 Hogs ........................................................... . +78.9 +10.2 -18.0 Sheep .......................................................... +24.2 per cent greater than one year earlier, reflecting increases of about an equal amount in holdings of direct Government obligations and in holdings of other securities. Reserve balances of these member banks, which had increased to a record high level on August 26, subsequently declined somewhat but on October 7 were 41.3 per cent greater than a year ago. In Morning Newspapers, October 30. THE MONTHLY REVIEW Adjusted demand deposits, although below the high point of the year reached on August I 2, showed a further fractional increase between September 9 and October 7 to a level 10.4 per cent above that of October 9, 1935. Balances held for domestic banks declined during the four weeks but had increased 11.3 per cent during the year. The principal resource and liability items of the consolidated weekly condition statements of the fifty-two reporting banks, for the three dates of comparison: Loans and investments-total.. Loans and discoun ts-totaL _... Secured by stocks and bonds All other loans and discounts Investmen ts-totaL- -··············· U. S. securi ties direcL .......... . Obligations fully guaranteed by the U. S. Government .. Other securities....................... . Reserve with F. R. Bank ......... . Demand deposits-adj usted ..... . Time deposits...... _ _ _ __ U.S. Governmen t deposits....... . Inter-ban k deposits: Domestic banks·--- ················· Foreign banks ......................... . Oct. 7, 1936 $690,674,000 240,678,000 51,278,000 l 89,400,000 449,996,ooo 264,804,000 Sept. 9, 1936 242,491 ,000 51,366,000 191,125,000 435,084,000 252,408,000 Oct. 9, 1935 '$632,216,000 213,000,000 46,018,000 166,982,000 419,216,000 247,018,000 50,381,000 134,8n,ooo 147,4n,ooo 482,356,000 I45,963,ooo 23,818,000 49,248,000 133,428,000 I 54,528,000 478,856,000 145,962,000 22,397,000 51,990,000 120,208,000 104,341,000 436,999,000 145,405,000 n,973,000 410,544,000 174,000 356,087,000 136,000 '$677,575,ooo Reserve Ban k Operations Holdings of bills discounted for member banks increased fraction ally from September 9 to October 7 but continued in small volume. Industrial advances and commitments to make industrial loans declined slightly and on October 7 were somewhat below the total of a year ago. Holdings of United States Government oblig ions, unchanged since July 1, were increased 2.4 per cent during the four weeks ended October 7 to a level 17.8 per cent greater than one year earlier. The increase during the four weeks reflected a reallocation of Government securities in the open market account of the Federal Reserve System by which the portfolio of this bank was increased $2,928,000. Federal Reserve note circulation on October 7 was fractionally smaller than the record high level reached four weeks earlier but was 15.2 per cent greater than on October 9, 1935. Member banks' reserve deposits, which had increased in the preceding five weeks, declined 3.7 per cent during the four weeks ended October 7, but showed an increase of 28.5 per cent for the year. The principal resource and liability items of the weekly condition statements of the Federal Reserve Bank of Kansas City and branches, for the three dates of comparison: Oct. 7, 1936 Sept. 9, I 936 Total reserves.............................. '$258,915,086 '$269,724,827 104,720 Bills discoun ted·- -······-················ 59,7 14 Bills purchased ............................ 87,128 87,214 Industrial advances ................... . 876,535 905,4 15 Commitments to make industrial advances.......................... 380,844 390,077 U.S. securi ties............................ 125,855,000 122,927,000 T ota l bills and securities............ 126,923,469 123,979,257 T otal resources............................ 423,238,312 431,759,IIo F. R. notes in circulation.......... 154,806,505 155,908,025 Member banks' reserve deposits 219,389,586 227,779,518 The discount rate of the Federal Reserve Bank of Kansas City, of p aper and all maturities, remained unchanged at 2 per cent. Oct. 9, 1935 '$205,809,978 4o3,791 126,581 1,102,982 1,303,500 106,844,200 108,658,554 348,462,035 134,356,810 170,763,525 on all classes Reserve Bank Check Collections The dollar volume of check collections through this bank and branches during September was slightly smaller than in August but was 8.8 per cent larger than in September of last year. During the first three quarters of 1936, check collections increased 13.2 per cent in the number of items handled and 11.9 per cent in dollar volume as compared to a year ago. Check collections through the Federal Reserve Bank of Kansas City and branches at Omaha, Denver, and Oklahoma City: September.... .... August .............. Nine months .... ITEMS 1935 1936 5,749,875 5,376,451 5,280,320 5,7°7,494 53,420,507 47,210,007 AMOUNT 1935 1936 $ 840,919,000 '$ 914,630,000 894, x35,ooo 934, 12 5,000 8,357,448,000 7,467,7 55,ooo Bank Debits Debits to individual accounts by banks in twenty-nine reporting cities in the District were seasonally smaller during the four weeks ended September 30 than during the preceding four weeks ended September 2 but increased 3 per cent as compared to the corresponding four-week period of last year. Check payments for the first thirty-nine weeks of 1936 were 12.8 per cent greater than in the same period in 1935. PAYMENTS BY CHECK FouR WEEKS ENDED Sept. 30, 1936 Oct. 2, 1935 10,916,000 t, 9,751,000 Albuquerque, N . M,·--··············· t, 2,969,ooo 3,357,000 Atchison, Kans.·----··················· Bartlesville, Okl ......_ _ _ _ 24,004,000 21,428,000 5,633,000 4,582,000 Casper, Wyo.·--··························· Cheyenne, Wyo .......................... . 6,536,000 6,720,000 Colorado Springs, Colo .._........... 14,327,000 12,589,000 Denver, Colo............................... 144,347,000 134,421 ,000 *Emporia, Kans ..- ...................... . 2,875,000 II,214,000 Enid, Okla................................... 8,979,ooo 2,291,000 2,603,000 Fremont, Nebr.·-························· 2,887,000 Grand Junction, Colo ................. 3,379,000 1,329,000 Guthrie, Okla ..- ........................... 1,301 ,000 13,221,000 H utchinson, Kans ....................... 11,210,000 1,988,000 Independence, Kans ................... 2,223,000 8,467,000 Joplin, fo ................................... 8,929,000 Kansas City, Kans ..................... 9,760,000 II,856,000 2 87,947,ooo Kansas City, Mo ......................... 281,350,000 3,196,000 Lawrence, Kans ..- ....................... 3,o35,ooo 23,810,000 Lincoln, Nebr..-.......................... . 25,614,000 6,614,000 Muskogee, Okla ........................... 6,938,000 81,1 70,000 Oklahoma City, Okla ................ . 78,306,000 Okmulgee, Okla .......................... . 2,491,000 2,580,000 Omaha, Nebr•.............................. 132,291,000 146,589,000 Pittsburg, Kans ........................... 3,189,000 3,420,000 12,201,000 I 1,788,000 P ueblo, Colo ..___ ·························· Salina, Kans ................................. 9,431 ,000 8,947,000 27,305,000 26,499,000 St. Joseph, Mo.·--······················· 12,387,000 14,514,000 Topeka, Kans ...·--······················· Tulsa, Okla .. _.............................. . 108,852,000 97,880,000 Wichita, Kans ............................ . 42,873,000 38,139,000 Total 29 cities, 4 weeks .......... t, 1,016,196,000 '$ 986,377,000 8,801,208,000 Total 29 cities, 39 weeks .... ...... 9,930,052,000 U. S. 273 cities, 4 weeks .......... 31,761,040,000 33,098,235,000 U. S. 273 cities, 39 weeks .... ...... 333,081,689,000 294,8 80,696,000 *Not included in totals. Per cent Change +n.9 -II.6 +12.0 +22.9 - 2.7 +13.8 + 7.4 - 1 9.9 +13.6 +17.0 - 2.1 -15.2 + n. 8 + 5.5 +21.5 - 2.3 - 5.0 + 7.6 + 4.9 - 3.5 + 3.6 +10.8 + 7.2 +3-5 - 5.1 - 3.0 +17.2 +n.2 -II.O + 3.0 + 4.2 +12.8 +13.0 Savings Savings deposits at forty-five selected banks in leading cities in the District, as in the preceding four months, showed a slight increase in September while the number of savings accounts declined slightly. Savings deposits on October 1 were 2.9 per cent and the number of accounts 2.4 per cent greater than on October 1, 1935. Savings accounts and savings deposits reported by the forty-five banks: Savings Accounts October 1, 1936........................................ 414,215 September 1, 1936.................................. 414,490 October 1, 1935·-····································· 404,695 Savings Deposits '$1 29,390,n5 128,662,108 125,700,677 Business Failures Commercial failures in the Tenth District during September were smaller in number and in the amount of liabili ties involved than in September of last year and showed little change THF. MONTHLY RFVTFW Stores Reporting Kansas City.... 4 Dcnver._........... 4 Oklahoma City 3 Tulsa ................ 3 Wichita ............ 3 Other cities ...... 14 RETAIL TRADE AT 31 DEPARTMENT STORES IN THE TENTH FEDERAL RESERVE DISTRICT In Percentages of Increase or Decrease except Rate of Turnover SALES STOCKS (RETAIL) ACCOUNTS RECEIVABLE A.MOUNTS COLLECTED Sept. 1936 Year 1936 Sept. 30, 1936 STOCK TURNOVER Sept. 30, 1936 Sept. 1936 compared to compared to compared to Sept. Y car compared to compared to Sept. 1935 Year 1935 Aug.31,1936 Scpt.30,1935 1936 1935 1936 1935 Aug,31,1936 Sept.30,1935 Aug. 1936 Sept. 1935 +11.3 + 6.6 + 6.I + I.I .37 .35 2.79 2.56 +21.1 + 6.8 - 2.4 - 1.8 +15.5 +12.0 + 4.6 +10.1 .35 .34 2.81 2.69 + 9.4 + 4.8 + 1.4 +10.8 - o.9 + 7.2 + 5.4 + 4.3 .39 .42 3.17 3.12 +18.9 + 8.8 + 5.2 + 4.3 - 4.4 + 8.2 + 5.5 - o.8 .37 .40 3.19 3.13 +23.0 - 8.5 - 5.8 +n.4 +12.1 + 5.6 + 5.3 +10.0 .31 .30 2.52 2.45 +21.4 + 3.2 Even + 4.'2 + 6.9 + 6.2 + 8.8 + 6.o .27 .27 2.25 2.15 +19.9 + 4.9 - o.8 + J.5 TotaL __........... 31 + 8.7 + 8.~ + 6.3 + 5.5 .34 .33 2.71 2.58 NOTE : Ratio of collections during month to regular accounts outstanding end of preceding month: as compared to August of this year. During the first mne months of 1936, liabilities increased slightly over the low levels reached in 1935 while the number of failures conti.nued to decline. Business failures reported by Dun and Bradstreet, Incorporated: September 1936·--··················· August 1936·--························· September 1935·---················· Nine months 1936·--··············· Nine months 1935----············· TENTH DISTRICT Number Liabilities 25 f, 196,000 32 192,000 30 198,000 311 3,456,000 327 2,910,000 UNITED STATES Number Liabilities 586 f, 9,819,000 655 8,271,000 787 17,002,000 7,194 I I 5,166,000 8,646 135,758,000 Life Insurance Sales of new paid-for ordinary life insurance in the seven states in the District were somewhat less in September than in August but were about the same as in September, 1935. Sales for the first nine months of 1936 decreased 1.9 per cent compared to sales in the first nine months of last year. Life insurance sales reported to the Life Insurance Sales Research Bureau by companies representing 90 per cent of the total legal reserve ordinary life insurance outstanding in the United States: Colorado.---······················ Kansas.............................. Missouri ............................ N ebraska ......................... . New Mexico...................... Oklahom..___ _ __ Wyoming.......................... September 1936 f, 3,662,000 3,805,000 II,227,000 3,232,000 858,000 4,536,ooo 883,000 Seven statcs·-··················· United States·---············· f, 28,203,000 426,344,000 August 1936 September 1935 f, 3,680,000 f, 4,415,000 5,101,000 3,923,000 12,793,000 11,892,000 3,844,000 3,479,000 622,000 758,000 4,196,000 4,754,000 648,000 817,000 f, 32,482,000 451,612,000 t, 28,440,000 413,716,000 Trade RETAIL: With the advent of cooler weather, the dollar volume of sales at thirty-one reporting department stores in leading cities of the District increased by 27.1 per cent during September, or somewhat more than the usual amount, and was 8.7 per cent greater than in September of last year. The September volume was at the highest level for the month since 1930 and during the first nine months of the year sales averaged an increase of 8.1 per cent over the first nine months of 1935. Stocks of merchandise were increased 6.3 per cent from Storea Reporting Dry goods........................ 5 Groceries.......................... 5 Hard ware·--··················· 9 Furnitur...__ _ __ 3 Drug.________ 7 +16.4 + 4.5 + 0.1 + 5.8 September 42.1; August 41.8; September 1935, 40.6. August 31 to September 30, or about the usual amount, and were 5.5 per cent greater than at the close of September last year. September collections on regular thirty-day accounts improved slightly, averaging 42.1 per cent of amounts receivable at the close of the preceding month as compared to a ratio of 41.8 per cent in August and of 40.6 per cent a year ago. Installment collections averaged 13.8 per cent in September, the same ratio as in August, and 13.9 per cent in September, 1935· WHOLESALE: The combined sales volume of five representative wholesale lines reporting to this bank expanded 4.4 per cent from August to September and 7.7 per cent compared to September of last year. Sales of dry goods, hardware, furniture, and drugs shared in the seasonal increase during the month but sales of groceries declined. All lines showed an increase in sales over a year ago. The combined sales volume for the first nine months of the year was 9.4 per cent greater than in the first nine months of 1935, reflecting an increase of 5.9 per cent for dry goods, 7.8 per cent for groceries, 13.6 per cent for hardware, 18.3 per cent for furniture, and 8.3 per cent for drugs during the nine-month period. Stocks of merchandise increased 4 per cent during September and at the close of the month were 5.5 per cent greater than a year earlier. Stocks of groceries, furniture, and drugs were larger than at the close of the preceding month but stocks of dry goods and hardware were slightly smaller. Stocks of dry goods, hardware, and drugs had increased during the year, while stocks of groceries and furniture had declined. Lumber Lumber sales in board feet at I 58 reporting retail yards in the District were less in September than in August but continued well above a year ago and increased 34.1 per cent for the first nine months of 1936 as compared to the first nine months of 1935. The dollar volume of sales of all materials showed a similar trend. Stocks of lumber showed little change between August 31 and September 30 but were somewhat larger than at the close of September last year. Collections declined further in September, averaging 36.2 per cent of amounts outstanding at the close of the preceding month compared to a ratio of 41.5 per cent in August and of 39.6 per cent in September, 1935. WHOLESALE TRADE IN T HE TENTH FEDE RAL RESE VE DISTRICT In Percentages of Increase or Decrease OUTSTANDINGS SALES AMOUNTS COLLECTED Sept. 1936 Sept. 30, 1936 Sept. 1936 compared to compared to compared to Aug. 31, 1936 Sept. 30, 1935 Aug. 1936 Sept. 1935 Aug. 1936 Sept. 1935 +16.0 - O.l - 8.1 + 0.4 + 5.9 +13.1 - 0.4 -11.6 - 2.2 +23.2 - 4.7 + J.4 + 1,0 - 5.6 + 7.'l +10.7 - 8.6 + 7-4 +26.1 +24.3 + 9.8 +24.2 + 2.5 +14.2 + 6.8 - 3.0 +13.1 + 6.4 +3-9 +4-9 STOCIC.S Sept. 30, 1936 compared to Aug. 31, 1936 Sept. 30, 1935 - o.6 +20.0 +14.5 - 1.6 - 1.3 + 2,2 + 2.6 - 8.o + 'l,4 + 8.I THE MONTHLY REVIEW 4 September business at the 158 reporting yards, in percentages of increase or decrease: September 1936 compared to August 1936 September 1935 -14.5 +28.7 - 1.3 +19.6 - 0.3 +n.8 + 7.7 +28.7 Sales of lumber, board feet.. .............................. Sales of all materials, dollars............................ Stocks of lumber, board feet ..·-························· Outstandings, dollars.......................................... The National Lumber Manufacturers Association reported that lumber production in the United States for the year to September 26 was 33 per cent, lumber shipments 25 per cent, and orders booked 23 per cent greater than in the same period in 1935. Building The value of construction contracts awarded in the Tenth District during September was substantially larger than in August or in September of last year, with about 40 per cent of the increase representing residential construction which was at the highest level for the month since 1929. The seasonal increase in building activity raised total construction to the highest level for the month in the same period with the exception of 1933. Total awards for the first nine months of 1936 were but little short of the amount reported for the entire year of 1935 and residential awards had already passed the entire amount for last year. The value of construction contracts awarded, as reported by the F. W. Dodge Corporation: 37 EASTERN STATES Total Residential 1, 234,270,500 1, 80,669,800 275,281,400 100,522,500 167,376,200 41,810,800 2,034,189,300 588,180,6oo 1,191,697,700 338,907,500 TENTH DISTRICT Sept. 1936.... Aug. 1936·-··· Sept. 1935.... 9 Mos. 1936.. 9 Mos. 1935.. Total 1,10,737,124 6,198,200 8,109,940 89,423,728 56,103,573 Residential 1, 4,109,693 2,213,300 1,725,555 21,983,664 12,841,666 The number of building permits issued and the estimated value thereof in eighteen reporting cities in the District, however, declined in September and estimated expenditures were smaller than a year ago although larger than in any other September since 1930. During the first nine months of the year, permits increased 14 per cent in number and 58 per cent in value compared to the first nine months in 1935~ BUILDING PERMITS IN TENTH DISTRICT CITIES PERMITS Albuquerque, N. M.·--··············· Cheyenne, Wyo ........................... Colorado Springs, Colo .. -.......... . Denver, Colo ............................... Hutchinson, Kans ... _ _ __ Joplin, Mo ......... _ _ _ __ Kansas City, Kans .................... . Kansas City, Mo ........................ . Lincoln, N e b r ~ - - - - Oklahoma City, Okla ................. Omaha, Nebr... _ _ __ Pueblo, Colo. Salina, Kans. _ _ _ _ __ Shawnee, Okla ... _ _ _ __ St. Joseph, Mo. _ _ _ __ Topeka, Kans. _ _ __ _ Tulsa, Okla. _ _ _ _ . Wichita, Kans ............................. 1936 67 55 74 489 61 27 38 186 146 161 158 47 18 18 44 85 II8 195 1935 8l 62 39 380 EsTIMATED CosT 1, 65 1936 103,303 96,44o 65,859 562,617 23,449 55,100 16 28 248 195 140 127 30,150 168,900 62,769 586,845 228,631 21,450 22,300 8,090 41,395 230,733 183,531 221,596 57 12 18 27 61 109 178 1935 1, of last year when running time averaged 65.9 per cent of capacity. Production for the first nine months of 1936 increased 3 per cent compared to the total for the first nine months of 1935. Flour production at the principal milling centers of the District, as estimated from the weekly reports of southwestern mills to the Northwestern Miller: Atchison ............................... . Kansas CitY·-- -··················· Salina .................................... Wichita·- -····························· Outside................................. . Aug. 1936 Barrels 135,190 529,153 210,670 222,841 1,102,385 Sept. 1935 Barrels II3,264 479, 1 67 185,536 178,540 1,019,676 TotaL................................... 2,137,545 2,200,'.2.39 1,976,183 *United States·---··············· 5,458,266 6,138,800 5,801,756 *Represents about 60 per cent of the total output in the United States. With the requirements of large purchasers apparently satisfied for sometime ahead and with bookings reported the heaviest in several years, flour sales in the southwest continued to decline in September in the absence of compelling market factors, and sales were confined for the most part to small lot orders. Shipping directions, however, improved during the month, enabling mills to maintain production at a level only slightly below that of August. Flour prices at the Kansas City market strengthened in September, following the trend of the wheat market, but prices of bran and shorts weakened with the impr?vement in pastures and forage crops following widespread rams. Grain Marketing Receipts of all grains at the five principal markets in the District declined substantially in September and, with the exception of corn and kafir, were much below receipts a year ago. Marketings of wheat were slightly less than half the total for August and were about one-third of the amount received in September, 1935, reflecting the earlier movement of the new crop this year and the holding tendency of producers. Receipts of corn continued light. Marketings of wheat rep. resented but 40.9, corn 49.7, oats 64.3, rye 38.3, and barley 22 per cent of the September ten-year average, while receipts of kafir and milo exceeded the average by 3.6 per cent. Cumulative receipts for the first three quarters of the year, however, showed increases for all grains. Receipts of grain at the five markets: 65,336 97, 23 1 38,270 1,460,367 21,981 141,150 19,265 322,100 II8,249 226,795 145,556 20,229 3,100 7,860 13,265 58,815 131,705 130,391 Sept. 1936 Barrels l 17,491 54o,485 197,422 223,728 1,058,419 Hutchinson .. Kansas City_ Omaha .......... St. Joseph.--. Wichita·---··· Wheat Bushels 1,066,500 2,377,600 1,102,400 396,800 909,000 Sept. 1936.... Aug. 1936. __ . Sept. 1935.... 9 Mos. 1936.. 9 Mos. 1935.. 5,852,300 12,229,600 16,021,018 no,817,037 85,784 1 256 Corn Bushels 1,250 Oats Bushels Rye Bushels Barley Bushels 835,5oo 596,400 226,000 220,000 390,000 1,500 16,500 57,400 13,500 46,000 123,000 14,300 1,570,450 2,704,200 948,250 30,100,268 18,417,960 837,500 2,484,500 2,623,500 12,469,500 12,033,000 Kafir Bushels 1,300 67,200 56,000 17,500 18,200 --------87,400 II9,500 86,700 282,100 583,200 168,700 270,300 792,900 55,Sco 784,goo 2,388,450 1,130,6oo 601,900 1,824,000 573,300 1, 3,021,665 18,629,952 Cash prices of wheat and kafir at the Kansas City market advanced during September while closing prices of corn, oats, and rye were slightly lower and barley was unchanged. Prices of all grains but oats and kafir advanced the first two weeks in October. Cash grain prices at Kansas City: Operations at southwestern flour mills declined from 70.9 per cent of full-time capacity in August to 68.9 per cent in September and production declined 2.8 per cent. Production was slightly below the average for September during the past ten years but increased 8.2 per cent as compared to September Oct. l 5 Sept. 30 Aug. 3 r Oct. 1 5 Sept. 30 Sept. 29 1934 1936 1936 1936 1935 1935 1 hard dk. wheat, bu. t,r.23½ t,r.20½ t,r.17½ $1.09½ 1,1.07 t,1.04.½ 2 mixed corn, bu .... . 1.12½ r.09¼ I.Io.½ .77.½ .78½ .So.½ 2 white oats, bu ...... . •45 .45.½ .46 .30.½ .31.½ .56 2 rye, bu .................. . .91 .88 .92 .53 ·52 .94 2 barley, bu.·---······ .92 .90 .90 ·52 .51.½ .88 2 white kafir, cwt.._ 1.79 1.82 1.77 I.22 1.26 1.71 Total 18 cities, September·--··-· 1,987 1,843 Nine months ...... ·- · · - - - - 15,977 14,014 f, 2,713,158 29,429,504 Flour Milling No. No. No. No. No. No. 5 THE MONTHLY REVIEW THE ESTIMATED PRODUCTION OF SEVEN TENTH DISTRICT CROPS, BASED ON THE OCTOBER 1 CONDITION Reported by the United States Department of Agriculture, in thousands of units, ooo omitted, except broomcorn WHITE POTATOES CORN TAME HAY GRAIN SORGHUMS BROOMCORN SUGAR BEETS DRY BEANS Bushels Tons Bushels Tons Short Tons 100 Lb. Bags Bushels Est. Final Est. Final Est. Final Est. Final Est. Final Est. Final Est. Final 1936 1936 1935 1935 1936 1935 1936 1935 1936 1935 1936 1935 1936 1935 17,170 18,000 Colorado................ 10,448 10,761 1,771 1,712 1,325 994 3,400 3,000 2,262 1,826 1,095 1,256 Kansas _ _ _ _ . 14,718 39,420 1,164 1,915 6,688 9,680 2,400 2,400 11 21 1,815 2,325 Missouri ___ ............. 42,534 72,890 1,706 2,553 1,u2 2,346 • 100 2,970 4,524 Nebraska................ 27,627 106,630 1,659 2,629 680 2,678 828 88 4,815 10,080 104 New Mexico.......... 2,750 2,700 262 241 3,000 2,816 302 5,800 276 525 420 II,IOO Oklahoma.............. u,310 25,872 569 748 7,400 13,160 1,920 2,730 23,100 Wyoming.-............. 1,155 2,260 866 1,015 1,305 2,610 410 Seven states--------· I 10,542 260,533 United States ........ 1,509,362 2,291,629 •Less than 100 tons. 7,997 62,968 10,813 7•, 20,205 76,146 I ' . 60,836 31,674 97,823 Agriculture CROPS: September weather conditions in the District were generally favorable for the growth and maturity of late crops and although the rains came too late to be of much benefit there was a slight upward revision in the Department of Agriculture production estimates for corn, oats, sugar beets, tame hay, dry beans, tobacco, broomcorn, white potatoes, sweet potatoes, cotton, apples, and pears. There was no change in the estimated production of grain sorghums and the estimates for barley, peaches, and grapes were lowered slightly. The October 1 estimates placed the yield per acre of thirty-three important crops combined at 73 per cent of the 1921-1930 average in Wyoming, 89 per cent in Colorado, 100 per cent in ew Mexico, 42 per cent in Nebraska, 61 per cent in Kansas, 48 per cent in Oklahoma, 59 per cent in Missouri, and 84.5 per cent in the United States. The harvesting of dry beans, sugar beets, and potatoes was well along and practically completed in the northern portion of the District early in October. Little damage to crops was reported from frost which occurred in Wyoming, eastern Nebraska, Colorado, and New Mexico at the close of September. The prospective yield of cotton was the same as one month earlier in Oklahoma and New Mexico but increased slightly in Missouri where rains came in time to stop the premature opening of bolls. Picking and ginning were in progress although delayed by unfavorable weather. Ginnings of the new crop to October 1 amounted to 131,000 bales in Missouri, 115,000 bales in Oklahoma, and 10,000 bales in New Mexico, and were well ahead of ginnings at this time last year. Cotton acreage and production, estimated by the Department of Agriculture, in thousands of units: 21,800 41,100 34,400 63,200 1,899 10,737 2,093 13,799 30,520 40,689 322,263 387,678 and alfalfa were up and making good growth and some wheat was furnishing pasture. Old alfalfa stands were recovering rapidly, indicating a fair to good last cutting this season. FARM STOCKS OF GRAIN: Stocks of old corn on farms in the seven states in the District on October r were more than four times as large as a year ago, following the short crop year of 1934, but were only slightly more than half the average stocks so held on that date from 1928 to 1932. Farm reserves of wheat, which include new wheat from the current year's crop, were almost as large as last year but declined 58.3 per cent as compared to the five-year average, reflecting below normal production both this year and last. Farm stocks of oats, including new oats from this year's crop, were 39.2 per cent below the average and 45.7 per cent below the extensive holdings on October 1 of last year when the crop was unusually large. Farm stocks of grain on October 1, estimated by the Department of Agriculture, in thousands of bushels: Colorado.__ ....... Kansas .............. Missouri ............ Nebraska .......... New Mexico. __ . Oklahoma. ___ ... Wyoming.......... Wheat 1935 1936 2,874 4,124 20,447 23,060 9,561 11,029 16,383 15,470 316 366 9,987 10,916 1,867 1,724 ------ Seven states.__ 62,542 65,582 United States.... 227,098 267,972 Oats Corn 1936 53 1 1,996 1935 79 268 5,554 2,122 13,220 239 1,459 2,787 121 22 23,120 173,770 61,655 IO 173 5,461 1936 3,825 14,477 22,509 23,578 346 16,512 1,305 1935 3,718 32,648 24,192 61,798 300 26,869 82,552 682,673 152,146 972,748 2,621 649 9,636 FARM PRICES: The index of farm purchasing power, or the ratio of prices received to prices paid by farmers, was unchanged between August 15 and September 15 at 98 per cent of the pre-war, 1909-1914, level. This was the highest point reached by the index since August r5, 1929, exceeding the low point in June, r932, and February, 1933, by 44 points and the index at this time last year by II points. Preliminary estimates of the Department of Agriculture indicated that cash income from the sale of farm products and Government payments in r936 would be about $7,850,000,000 as compared to $7,090,000,000 in 1935 and $4,370,000,000 in r932. The rains revived pastures, which were greening rapidly although still poor on October 1, and provided surface moisture for seedbed preparation and for the planting of winter grains, which have made much progress since late September. Soil moisture over the eastern two-thirds of Kansas was reported sufficient to carry wheat well into the winter but in northeastern Wyoming, in most of Nebraska, and in western Kansas and adjacent areas in Oklahoma, New Mexico, and Colorado there was less than the usual reserve of subsoil moisture and the moisture situation as affecting next year's crops was not so favorable in those areas. Early seeded wheat, oats, rye, barley, MARKETINGS: Receipts of cattle, calves, and sheep at the six principal live stock markets in the District increased seasonally in September but the increase in cattle marketings was small, reflecting in part the earlier than normal movement of grass steers from Oklahoma and Kansas pastures which usually does not reach its peak until in that month. Marketings of hogs, including direct shipments to packers, increased contrary to the usual seasonal trend but represented only 53.3 per cent of the average volume for September during the past ten years. Receipts of cattle were 10.2 and sheep r8.7 per Oklahoma.......... New Mexico...... Missouri ............ ACREAGE FOR HARVEST Oct. I Oct. I Oct. 1 1936 1935 1934 2,628 2,539 2,290 108 109 92 288 320 349 Three states...... United States._. 2,748 29,720 3,056 28,652 2,919 27,241 ESTIMATED PRODUCTION (500 lb. bales) Oct. I Final Final 1934 1935 1936 239 321 567 JOO 90 75 240 238 177 579 u,6o9 819 10,638 Live Stock 6 THE MONTHLY REVIEW cent below the ten-year average while receipts of calves exceeded the average by 17.4 per cent. Cattle receipts were smaller than a year ago but marketings of calves, hogs, and sheep showed sizable increases. The six markets received 8,586 horses and mules in September, 8,719 in August, and 12,094 in September, 1935. PRICES: With a broadening in demand for dressed beef and an improvement in the quality and condition of offerings, prices of beef steers at the Kansas City market advanced 50 to 75 cents per hundredweight during September. Choice steers reached '$9.75 and yearlings '$10, the highest levels since last April, and heifers reached '$10.25, the highest price for this class this year. Comparative top prices in September, 1935, were '$12, '$11.25, and '$II, respectively. Demand for stockers and feeders broadened seasonally and new top prices since July were established on the principal replacement classes and since M ay on the principal feeder classes although values were somewhat lower than a year ago. The forced early marketing of spring pigs at the lightest weights since in 1934 and weakness in the demand for dressed pork resulted in a sharp decline in hog prices, the principal killing classes closing $1.10 to $1.15 lower than at the close of August. The hog top of 1, u.25 was 30 cents lower than in August and 40 cents below a year ago but above the September tops from 1931 to 1934. Stock pigs were f,1.25 to $1.50 lower. Range lambs arrived in peak volume but quality was good and prices advanced about 40 cents while native lambs were steady to 25 cents higher. The top for western range lambs was $10.25, the highest lamb price for any September since 1929, and for native lambs $9.85 compared to '$9.75 for westerns and '$10 for natives in September last year. All live stock values generally weakened the forepart of October. STOCKERS AND FEEDERS: Shipments of stocker and feeder live stock from four markets in the District increased seasonally in September. The countryward movement of hogs was unusually large and was much above that of a year ago, but shipments of cattle, calves, and sheep declined as compared to September of last year and cattle and calf shipments showed a decrease for the nine-month period. Cattle shipments were 38.4 and sheep 55.1 per cent below the September ten-year average, while shipments of calves exceeded the average by 7.8 per cent. According to the Department of Agriculture, the January through September movement of stocker and feeder cattle into the western Corn Belt was 6 per cent and the July through September movement 1 per cent less than a year ago, indicating a considerable reduction in the number to be fed for market during the fall and winter feeding period inasmuch as a larger than usual proportion of these cattle was expected to be carried over the winter on hay and roughage and pastured next summer. Feeding operations in New Mexico were expected to Kansas City.............. Omaha........................ St. Joseph ........·.......... Denver·-····················· Oklahoma CitY·-······· Wichita ...................... Cattle 171,367 167,486 4 2,5°3 39,280 47,638 25,181 September 1936........ 493,455 August 1936.............. 49 1,596 September 1935-•···5°4,9 13 Nine months 1936.... 3,286,663 tNine months 1935 .. 3,106,068 *Includes 75,120 hogs shipped show a considerable increase. Shipments of stocker and feeder lambs and sheep into the western Corn Belt during the three months July to September were IO per cent larger than in 1935, but the movement into Colorado and Wyoming was somewhat reduced and the number to be shipped into Kansas and Oklahoma depended largely on the favorable growth of winter wheat pasture during October. September rains and favorable temperatures resulted in a marked improvement in pastures and ranges during September except in Colorado and Wyoming where slight declines in condition occurred. Wheat and other grain pasture prospects were promising but late in Kansas, Oklahoma, and parts of Nebraska and if realized will help to relieve the shortage in feed grain, forage, and hay crops this year. Meat Packing Packers' purchases of live stock at the six principal markets in the District, direct purchases of hogs included, indicated an increase in calf and sheep slaughter and a slight decline in cattle and hog slaughter during September. The slaughter of all species was above that in September of last year and the slaughter of cattle and calves exceeded the ten-year average volume for the month by 11 and 45.7 per cent, respectively, but hog slaughter was 50.6 and sheep slaughter 26.1 per cent below the · average. During the first nine months of the year, p ackers purchased more cattle, calves, and hogs and fewer sheep for slaughter than in the same period in 1935. The commercial slaughter of cattle under Federal meat inspection in the United States, in excess of a million head for the second month this year, was 33.3 per cent above the September ten-year average and calf slaughter exceeded the average by 40.4 per cent. Hog slaughter was larger than in September of last year, but fell 10.4 per cent below the ten-year average and has been exceeded for the month in all other years since 1920. The slaughter of sheep was the heaviest since October, 1935, and was 9.1 per cent above the average volume. Live stock slaughtered under Federal meat inspection in the United States, reported by the Bureau of Agricultural Economics from compilations of the Bureau of Animal Indus try: Cattle Calves Hogs September 1936................1 1,071,569 552,658 2,403,342 August 1936·- - -··············· 1,oII,743 540,801 2,253,964 September 1935·--··········· 885,782 457,894 1,452,926 Nine months 1936·- - -····· 7,872,531 4,513,760 23,590,562 Nine months 1935·- - -····· 6,734,929 4,187,340 18,625,557 NOTE: Slaughter for Government relief purposes excluded. Sheep 1,592,912 1,395,374 1,548,865 12,357,032 13,104,014 Cold Storage Holdings An unusually heavy seasonal accumulation in United States cold storage stocks of beef, lamb, poultry, and cheese and a contra-seasonal increase in stocks of miscellaneous meats to levels substantially above a year ago and above the October 1 SEPTEMBER MOVEMENT OF LIVE STOCK IN THE TENTH DISTRICT RECEIPTS STOCKERS AND ! FEEDER~ PURCHASED FOR SLAUGHTER Calves Hogs Sheep Cattle Calves Hogs Sheep Cattle Calves Hogs Sheep 1I6,810 20,408 25,853 51,119J II,584 93,668 34,600 *115,416 75,181 4 1,946 *149,443 2,682 212,502 6,482 86,114 22,714 IIo,921 105,847 78,781 44,9o9 15,745 93,575 1,266 10,516 10,235 63,428 67,890 5,111 32,406 892 9,611 51,223 57,453 18,968 21,264 8,125 5,248 26,987 69,885 432 4,444 38,97 1 475,563 754 21 ,349 27,487 19,620 32,217 31,619 8,297 4,077 12,933 20,399 6,652 22,562 5,231 5, 233 5, 239 108,144 886,295 109,264 19,712 400,484 102,057 6o8,688 85,892 389,144 I 5,177 20,141 148,000 93,648 245,418 747,792 596,173 3,876,277 5,36 2,332 Sx,399 573,378 109,972 678,344 594,977 2,969,579 5,449,697 direct to packers' yards. fReceipts include Government 192,368 283,169 154,835 288,406 230,084 234,487 5,73° 720,u6 71,342 x,945,38 2 1,605,970 653,184 55, 2 77 purchases of cattle and calves. 24,788 13,856 291,842 89,251 314,570 317,091 24o,439 78,373 200,800 64,324 245,665 481,310 3,230,801 2,601,089 447,438 2,448,881 2,806,985 THE Mo~THLY five-year average occurred during September. Holdings of pork and lard declined by less than the usual seasonal amount during the month but holdings of pork were 24.8 per cent below the average despite an increase of 30.3 per cent during the year. Net withdrawals of eggs were about normal for the season while butter moved out of storage at about one-third the usual rate. Holdings of eggs and butter on October 1 were smaller than a year ago and were 13.1 and 12 per cent, respectively, below the average. Drought had resulted in a heavy marketing of poultry and had reduced butter supplies this year. United States cold storage holdings reported by the Bureau of Agricultural Economics, in thousands of units: *Oct. I 1936 82,804 361,651 3,334 82,076 Sept. I 1936 Beef, lbs,----··-·---·--···-·-·---------···---·········· 64,255 Pork, lbs.·--------·-··-··---·------···-···-·-------·--420,848 Lamb and mutton, lbs·--·-------·---·---·--2,634 Poultry, lbs.·----·-------··--···--·--·-----·-·-·····65,488 **Turkeys, lbs·-----·-·----·---·-----·-···---·-·-·----5,593 7,989 Miscellaneous meats, lbs.____ _______________ 75,233 73,154 Lard, lbs·-----------·--··-····-·-·-·······---------··-- 101,634 110,561 Eggs, cases ..·-··----------···-···--··-··--··-·-------5,8 I 7 7,006 Eggs, frozen (case equivalent) ____ ._____ 2,761 3,103 Butter, creamery, lbs.·---···---------------- 108,777 112,106 Cheese, all varieties, lbs·--·----·--··-······· 1 I 5,309 107,542 *Subject to revision. **Included in Poultry. Oct. I Oct. I 1935 5-Yr.Av. 48,226 50,616 277,605 481,080 1,376 1,911 39,7 20 46,573 3,663 6,549 63,161 49,065 45,35° 101,083 6,695 6,353 2,739 2,819 148,822 123,645 11 4,953 105,083 Coal The production of bituminous coal in the District increased seasonally from August to September and was 23.6 per cent greater than in September, 1935. Production for the first nine months of the year increased 17.8 per cent compared to production for the first nine months of last year. Bituminous coal production reported by the Bureau of Mines: *Sept. 1936 Tons Colorado ____________ ···--···--·--·-··-·--··-·Kansas and M issouri__ _______________ . New Mexi co-----·---·--·-··--·---··-···----Oklahoma.. _____ _____________ ___ ________ .____ _ Wyoming __ ·-----------···-···---------··--·--- 556,000 528,000 II4,ooo 215,000 510,000 Aug. 1936 Tons 400,000 464,000 111,000 I 53,000 393,000 Sept. 1935 Tons 457,000 452,000 95,000 167,000 385,000 Six states--•-··----·-·-···-···------·---------I ,923,000 1,521 ,ooo 1,556,000 United States________________ _______________ 36,772,000 33,240,000 25,038,000 *Estimated fro m the weekly reports of the United States Bureau of Mines. Petroleum The daily average flow of crude oil in the District declined 1.7 per cent in September and gross production, with one less producing day, declined 4.9 per cent or somewhat less than the usual seasonal amount. Production was 14.3 per cent greater than in September of last year and was 15.3 per cent above the average for the month during the past ten years. REvrnw 7 Production for the first nine months of 1936 increased 9. 5 per per cent compared to production for the first nine months in 1935· Petroleum production, estimated from the weekly reports of the American Petroleum Institute for September and officially reported by the Bureau of Mines for August and for September, 1935, in thousands of barrels: Oklahoma ___··----···---· Kansas·- --··------·-··-·-··· Wyoming.................. Colorado ___ ··············· New Mexico.---······· Five states .. ·-············ United States·-·--····- September 1936 Gross D.Av. 17, 139 571.3 163.6 4,9°7 1,249 41.6 148 4.9 2,370 79.o August 1936 Gross D. Av. 18,178 586.4 168.8 5,231 1,248 4o.3 5.0 155 2,331 75• 2 September 1935 Gross D.Av. 14,934 497.8 151.7 4,55° 1,204 40.2 138 4.6 1,762 58.7 25,813 860.4 90,609 3,020.3 27,143 875.7 95,090 3,067.4 22,588 753.0 84,109 2,803.6 ------ ------ ------ Mid-continent crude oil prices were unchanged at schedules posted on January 9 ranging from 86 cents to $1.18 per barrel according to gravity. Field operations continued active. Completions in states in the District totaled 3,762 to October 10 this year and 2,863 in the same period last year. Zinc and Lea d Shipments of zinc and lead from the Tri-State district increased by a considerable amount during the five weeks ended October 3 and were above shipments for the corresponding period in 1935. Shipments of zinc concentrates generally exceeded production and surplus stocks of zinc were reduced to about 30,000 tons, the lowest level since early in the year. The number of zinc mills in operation was increased from 45 to 56 during September as compared to 64 mills in operation at the middle of June, shortly prior to the inauguration of the voluntary production curtailment program. Cumulative shipments of zinc increased 19.1 per cent and lead 30.3 per cent this year compared to last. Zinc and lead shipments from the Tri-State district: ZINC ORE LEAD ORE Value 809,871 505,301 96,598 Tons Value 2,637 $ 131,850 1,256 62,800 227 II,350 5 Weeks ended Oct. 3, 1936.__ 44,930 $ 1,411,770 5 Weeks ended Aug. 29, 1936._, 35,810 1,110,110 5 Weeks ended Oct, 5, 1935.__ 43,375 1,308,189 4,120 i 206,000 3,180 159,000 3,469 159,043 38,369 1,896,050 29,442 1,139,422 Oklahoma·-······················-··-·····-···· K:> 'lsas ... •-····-·····-······-····················Missouri _ _ _ _ _ 40 Weeks ended Oct. 40 Weeks ended Oct. Tons 25,771 $ 16,08 I 3,078 3, 1936__ . 323,840 10,272,165 5, 1935.__ 271,846 7,466,849 Zinc prices at the Joplin market advanced 50 cents per ton to close the month at $31.50 as compared to $31 a year ago, while lead prices were unchanged at '/,50 per ton compared to '/,47 at the close of September, 1935. In September of last year zinc advanced '$,I and lead '/,2 per ton. National Summary of Business Conditions By the Board of Governors of the Federal Reserve System Volume of industrial production was maintained in September and employment at factories increased seasonally. Distribution of commodities to consumers increased. Commercial loans of city banks showed further growth. PRODUCTION AND EMPLOYMENT: Industrial output in September, as measured by the Board's seasonally adjusted index, was 109 per cent of the 1923-1925 average, approximately the level of the two preceding months. Output of steel was about the same as in August and in the first three weeks of October the rate of activity rose to a higher level than at any time since 1930. Automobile production showed a sharp seasonal decline in September and a considerable seasonal advance in the first three weeks of October. Production of lumber and cement showed a further rise and increases in activity were also reported at meat packing establishments and at cotton and silk textile factories. At woolen mills there was little change in production although an increase is usual in September. Output of coal increased more than seasonally, and crude petroleum production continued in large volume. Factory employment increased seasonally in September and payrolls were maintained at the August level. The number employed in most industries producing durable goods continued to increase, while at automobile factories there was a season al decline. Employment decreased at woolen mills and showed 8 THE MONTHLY REVIEW a smaller increase than is usual at this season at cotton mills and at establishments producing women's clothing. Value of construction contracts awarded, as reported by the F. W. Dodge Corporation, declined somewhat further in September from the relatively high level reached in the middle of the year. There was a decrease in awards for residential building, reflecting chiefly a smaller volume of contracts for apartment construction which in August had included several large publiclyPER CENT PER CENT 140 r-----.---....---~---.-----~--~--..----, t40 INDUSTRIAL PRODUCTION larger shipments of coal, ore, and miscellaneous freight and a decline in loadings of grain. COMMODITY PRICES: The general level of wholesale commodity prices has shown little change in the last two months. From the middle of September to the third week in October sugar and butter prices declined, and there were decreases also in prices of hogs and pork, as is usual at this season. Price advances were reported for leather and coke and higher prices MILLIONS OF DOLLARS MILLIONS Of DOLLARS 600 600 CONSTRUCTION CONTRACTS AWARDED 130 t------1-----+---+---+----+---+---+-------l 130 110 100 70 60 t-----+--~---------+----+----+---+-----160 50 50 t929 t930 1931 1932 1933 1934 1935 1936 1929 1930 1932 1931 t933 1934 1935 1936 Index of physical volume of production, adjusted for seasonal variation, 1923-1925 average=Ioo. By months, January 1929 through September 1936. Figures for 1935 and 1936 have been revised. Three-month moving averages of F. W. Dodge data for value of contracts awarded in 37 Eastern States, adjusted for seasonal variation. Latest figures based on data for July and August and estimate for September. financed projects. Awards for non-residential work declined, partly as a result of a reduction in contracts for public works and utilities which have been in large volume during recent months. AGRICULTURE: Crop conditions improved somewhat from September 1 to October 1, according to the Department of Agriculture, but estimates for corn and many other crops are still considerably below the harvests of last year. The cotton crop is estimated at II,600,000 bales, an increase of 500,000 bales from the estimate made a month earlier and of 1,000,000 for some finished and semifinished steel products became effective on October I. BANK CREDIT: Loans of reporting member banks in leading cities, other than loans on securities, continued to increase in September and the first half of October. On October 14 the volume of these loans was more than $400,000,000 larger than on July 2.9. About half of this increase was at New York City banks and the remainder principally at banks in western and southern cities. Holdings of United States Government obligations have declined in recent weeks at New York City P~R CENT PER CENT 120 FACTORY EMPLOYMENT AND PAYROLLS 110 ~ OOLLARS 23 16 110 15 22 14 21 13 20 100 too 90 90 80 80 70 70 60 50 BILUOHS BIUJONSaDOLLARS 120 12 19 11 10 6 9 5 8 60 4 4 50 3 3 2 2 40 40 30 30 1929 1930 1931 1932 1933 1934 1935 1936 Indexes of number employed and payrolls, without adjustment for seasonal variation, 1923-1925 average=IOO. By months, January 1929 through September 1936. Indexes compiled by the United States Bureau of L abor Statistics. bales from the 1935 crop. Total cash farm income, including all Government payments, is estimated by the Department of Agriculture at '1,7,850,000,000 for the calendar year 1936 as compared with $7,090,000,000 in 1935. DISTRIBUTION: Distribution of commodities to consumers increased by more than the usual amount in September, following a less than seasonal rise between July and August. Sales at department and variety stores and by mail order houses serving rural areas were in larger volume in September. Volume of freight carried by railroads increased, reflecting 0 1935 1936 •34 1935 1936 Wednesday figures for reporting member banks in 101 leading cities. September 5, 1934, through October 14, 1936. Lo ans on real estate, loans to banks, and acceptances and commercial paper bought included in total loans and investments but not shown separately. banks and have increased somewhat at other banks. Deposits of reporting banks have continued to increase. Excess reserves of member banks increased by $410,000,000 in the five weeks ending Octa ber 2. r, reflecting a reduction of 300,000,000 in Treasury holdings of cash and balances at the Reserve banks and an increase of $2. 50,000,000 in monetary gold stock, the effects of which were partially offset by a seasonal increase in money in circulation and a further growth in required_reserves.
@FedFRASER