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THE MONTHLY REVIEW (overing Conditions in the Tenth Federal ~erve Vistrict Federal Reserve Bank of Kansas City M. L. McCLURE, Chairman Board of Directors C. K. BOARDMAN, and Federal Reserue Agent VoL. 9 KANSAS CITY, Mo., OcToBER I, ETTERMENT of the financial condition of the agricultural population through production of large crops of . wheat, corn, oats, hay, cotton, fruit and other products, Is favorably affecting banking, merchandising and other business activities throughout the Tenth Federal Reserve District. There has been a perceptible improvement during the last sixty days, though the improvement has not been such as to bring on what is commonly regarded as a "boom." Farmers of the District marketed about one-fourth to onethird of their 300,500,000 bushel wheat crop during July and August at 20 cents to 30 cents per bushel above prices prevailing in July and August last year. Their first thought was to rid themselves of debt and, postponing purchases of goods other than necessities, a considerable portion of the proceeds from B STATISTICAL RECORD OF THE TENTH FEDERAL RESERVE DISTRICT COMPARING RETURNS FOR AUGUST, 1924 WITH RETURNS FOR AUGUST, t923 Bank Debits, 27 cities Four Weeks ended September 3.... $1,050,86-2,000 Clearings, Federal Reserve Bank Amount ............................................ $ 797,556,371 Items ...... - - - - - 5,049,577 Loans and Discounts, 72 banks............$ 405,776,000 Deposits, 72 Banks Demand...... ---····················1, 427,613,000 Time ................................................ $ 136,051,000 Savings in Banks Deposits, 52 banks ........................$ 101,3I5,599 Accounts, 47 banks........................ 325,217 Commercial Failures, Tenth District Number................... _ _ _ _ 123 Liabilities ........................................ $ 5,418,201 Building Permits, 18 Cities Number_·············-----2,890 Estimated Cost..·---·······················$ 9,986,725 Grain Receipts, 4 markets Wheat, bushels ............................... . 4 1 ,0 2 9,95° 4,236,700 Corn, bushels .....· - - - - ········· 2,591,600 Oats, bushels....... - - - - - Flour Production, barrels ..................... . 2,180,184 Ore Shipments, Tri-State District Zinc ore, value ................................$ 3,111,226 Zinc ore, tons ...... - - - 73,726 Lead ore, value .......... ....................$ 971,694 Lead ore, tons ............................... . 9,458 Crude Oil Production, 4 states, barrels. 22,415,400 Live Stock Receipts, 6 Markets Cattle .............................................. 5oo,739 Calves .......... _ _ _ _ _ _ __ 105,I96 704,250 Hogs .. ·-············································· Sheep ........................... _ _ __ 631,121 Horses and Mules .......................... 11,619 Meat Packing, 6 Centers Cattle.............. _ _ _ _ __ 242,040 Calves.......... - - - - - - 73,059 Hog..__ _ _ _ _ _ _ __ 499,7o5 Sheep.. _ _ _ _ _ _ _ _ __ 299,77 2 Change Percent $1,045,547,000 0.5 $ 689,8Io,192 4,691,413 $ 446,021,000 15.6 7.6 -9.0 $ 439,974,000 $ 135,487,000 --2.8 0.4 $ 97,315,359 $ 68 1,083,184 $ 2,930 6,675,344 -1 .3 49.6 20,898,150 3,986,000 4,982,100 2,039, 239 96.3 6.3 -48.0 6.9 1,651,572 43,067 321,233 4,078 17,757,000 88.4 71.2 202.5 131.9 26.2 665,121 143,137 9°7, 2 52 494,95° 9,664 - 2 4.7 -26.5 --22.4 2 7·5 20.2 270,550 84,070 635,o70 23°,599 -10.6 -13.1 --21.3 3o.o '$ 1, Assistant Federal Reserue Agent and Secretary 192.4 No. Io wheat and other products marketed was used to meet the more pressing demands for funds. Thus while the statistical reports covering the volume of trade show but a slight upward trend, as compared with previous months this year and corresponding months last year, it is noted that the newly created wealth, and that to come with later marketings, has brought about a spirit of confidence everywhere in the District with a feeling that business is being reestablished on a sounder and more stable basis than at any other time since the beginning of the World War. Country merchants are placing orders for goods in anticipation of a large fall and winter trade and manufacturers are increasing their output to meet expected demands. Implement and farm machinery dealers are doing heavier business than a year ago. Reports from the leading industries in the District are encouraging. Lead and zinc ore shipments during August were the largest of the year. The value of lead shipped was more than 200% above August last year, while the value of zinc shipped was more than 100% above last year. Crude oil production in August was the largest for any month of record for the four producing states of this District and 26% above the output of August last year. Colorado precious metal" mining is running heavier than for many years. Coal mining, which has 1:ieen depressed throughout the season by lack of market demand for the output, increased slightly during August to about 50% of operating capacity and somewhat behind last year's record. Salt mining has been running behind last year but is now showing an upward trend with a brighter outlook for the future. With receipts of wheat at the primary markets in the District practically double the receipts of last year, August flour production also exceeded last year's production by nearly 7%. Meat packing was seasonally heavey but not quite up to a year ago . Building operations during August assumed unexpected activity. The money value of new buildings authorized was the largest for any month of the year, and 49.6% above last year. While long needed relief has come to agriculture, it is observed that readjustment of the live stock industry has been slow. There is still a considerable volume of unliquidated cattle loans, though with an abundance of mon~y available many holders of cattle paper are inclined to give borrowers an opportunity to market stock at an auspicious time and supply the expense money to carry over the herds another year. The sheep industry is in better condition than for a long time. With prices of sheep and wool at high levels farmers throughout the District are stocking their farms with small flocks. The hog situation appears somewhat unsatisfactory and there is an element of uncertainty in the outlook. While there has been a large reduction in the pig crop, there has also been heavy marketings of light sows with possible danger of over-liquidation of breeding stock. This Copy Released For Publication In Morning Newspapers September, 29 THE MONTHLY REVIEW 1. 2. 3. 4. 5. 6. 7. 8 9. PRINCIPACRESOURCE AND LIABILITY ITEMS OF MEMBER:BANKS)N SELECTED CITIES Sept. 3, 1924 Sept. 5, 1923 72 Banks 76 Banks Loans and Discounts (including rediscounts): (a) Secured by U.S. Govt. obligations·--·····$ 6,86o,ooo 5,761,000 $ (b) Secured by stocks and bonds, other than U. S. Bond.,___________ 82,664,000 81,779,000 (c) All other.............................. ·-······················ 318,236,000 356,497,ooo Investments: (a) U. S. pre-war b o n d . ~ - - - - - I 1,629,000 11,600,000 38,592,000 49,312,000 (b) U. S. Liberty bonds·--·············---(c) U. S. Treasury bond.~----2,152,000 4,881,000 (d) U. S. Victory notes and Treasury notes.... 20,299,000 19,033,000 (e) U. S. Certificates of Indebtedness·--······· 2,384,000 5,054,ooo (f) Other Bonds, Stocks and Securities ........ 61,092,000 6o,255,ooo Total loans and discounts, and investments·-··· 541,087,000 5g6,993,ooo 49,412,000 Reserve balances with F. R. Bank..·-··············· 44,9 13,000 Cash in vaul.___ _ _ - - - - - - - 12,169,000 12,744,000 Net demand deposits on which reserve is computed. _______________ .. 427,613,000 439,974,000 135,487,ooo Time deposit"-------·-··-····-··-····· 136,051,000 Government deposit...._________ 852,000 1,139,000 Bills payable and rediscounts with F. R. Bank secured by (a) U. S. Govt. obligations................. - .......... . 9,061,000 15,624,000 (b) All other.......- - - - - - - - TOTAL (Items 3 to 9 inclusive) _ _ _ _ _ j1,163,534,ooo $1,260,434,000 Financial The large inflow of new crop money during July and August has caused a vast improvement in the financial situation in the Tenth District. With heavy liquidations of old loans and greatly increased deposits the banks are getting into better position than for a long time. With money in plenty they are beginning to take on new loans and to make new mvestments. MEMBER BANKS' SHOWING: Seventy-two member banks of the Federal Reserve system in cities of the Tenth District reported loans and discounts, including rediscounts, aggregating '$405,776,000 at the close of business September 3, an increase of $3,274,000 or o.8% over the total reported August 6, and a decrease of $40,245,000 or 9% from the total reported September 5, 1923.i[ Investments of the reporting member banks September 3 were "1 135,311,000, an increase of $4,697,000 or 3.6% over August _6 and a decrease of 15,661,000 or 10.4% from September, 1923. Gross deposits of $564,516,000 on September 3 were $9,207,000 or 1.7% larger than four weeks previous to that date. Demand deposits increased $8,936,0001 time deposits increased $431,000 and Government deposits decreased $160,000 during the four weeks. Gross deposits September 3 were $12,084,000 or 2.1% less than on the corresponding reporting date last year. FEDERAL RESERVE BANK OPERATIONS: Weekly statements of the Federal Reserve Bank of Kansas City and branches during August and September showed borrowings by Member Banks at the lowest level since the World War. Bills rediscounted for member banks, together with open market purchases of bills, on September IO were $12,797,952, as compared with $40,134,439 on September 12, 1923. United States Government securities held totaled $33,413,350, against 'i,II,427,150 a year ago. Total earning assets were 46,211,302 against 51,561,589. Total deposits were 82,679,053 as compared with 80,038,762. B I TK DEBITS: Twenty-eight clearing houses in cities of the Tenth District reported debits by banks against account~ of customers aggregating 1,077,674,000 for a four weeks period ending September 3. This total was 25,628,000 or 4% below the total debits for the previous four weeks, ending August 6. Debits for the four weeks ending September 3, however, were 5,315,000 or 0.5% greater than the total for the corresponding four weeks in 1923, based on returns from twenty-seven clearing houses reporting for both years. The reports follow: Four wks. ending Four wks. ending Sept. 3, 1924 Sept. 5, 1923 Atchison, Kansas______ 5,985,000 5,294,000 Bartlesville, Oklahoma...................... 11,859,000 7,941,000 17,109,000 Casper, Wyoming.---·····················-·· 11 ,o 37,000 Cheyenne, Wyoming.. 7,580,000 10,694,000 Colorado Springs, Colorado.............. 12,239,000 II,350,000 Denver, Colorado.............................. 146,489,000 133,454,000 Enid, Oklahom 13,265,000 12,315,000 Fremont, Nebraska.... 2,699,000 2,814,000 Grand Junction, Colorado. _____ ······· 2,541,000 2 ,359,000 Guthrie, Oklahoma............................ 2,186,000 2,651,000 Hutchinson, Kansa 19,510,000 10,775,000 Independence, Kansas 6,306,000 7,404,000 11,620,000 Joplin, Missouri.... 12,599,000 Kansas City, Kansa 17,306,000 18,606,000 Kansas City, Missouri...................... 331,544,000 326,235,000 Lawrence, Kansas........ 3,667,000 3,5°7,000 Lincoln, Nebraska..... ·-···················26,812,000 Muskogee, Oklahoma...... 8,874,000 18,441,000 Oklahoma City, Oklahoma.._ ...........62,997,000 65,740,000 Okmulgee, Oklahoma........................ 6,648,000 6,297,000 Omaha, Nebrask 167,294,000 175,506,000 2,499,000 Parsons, Kansas................ 2,833,000 Pittsburg, Kansas .... _.. 5,061,000 5,662,000 Pueblo, Colorado..... 13,516,000 13,489,000 St. Joseph. Missouri.......................... 52,745,000 49,7oo,ooo Topeka, Kansas.... 13,670,000 u,248,000 Tulsa, Oklahoma................................ 68,348,000 73,840,000 Wichita, Kansas................................. 42,064,000 38,997,000 Total 28 cities·-·····----···········$1,o77,674,ooo *Computed on returns from 27 cities. $1,045,547,000 Percent Change 13.0 49.3 -35.5 -29.1 7.8 9.8 7.7 -4.1 7.7 -I7.5 81.1 -14.8 8.4 ,.o 1.6 4.6 -51.9 -4.2 5.6 -4.7 13·4 -10.7 0.2 6.1 21.5 ,.4 7.9 *0.5 FEDERAL RESERVE BANK CLEARINGS: The transit department of the Federal Reserve Bank of Kansas City and branches at Omaha, Denver and Oklahoma City, during August handled 5,049,577 items for member and non-member banks for amounts aggregating $797,556,371. This was the second largest month's business of the current year in clearings, the August totals being 38,453 items and $22,381,424 or 2.7% below those reported for July. The August clearings, however, exceeded those of August, 1923, by358,164 items and $107,746,179 or 15.6%. Clearings for the eight months of 1924, totaling 39,24.7,276 items and $5,991,168,948 in amount, were larger than those for the first eight months of 1923 by 107,977 items and $I 13,868,995 or 1.9% in amount. SAVIN GS IN BANKS: Fifty-two commercial and savings banks in cities of the Tenth District reported an increase of 4.1% in the amount of savings deposits on September 1 over the total a year ago. Savings deposits increased 0.28% between August I and September 1 this year. Total number of savings accounts in forty-seven banks increased 5.2% over September 1, 1923. The reports follow: · Banks Denver, Colo....................... 7 Kansas City, Kans .·--········· 3 Kansas City, Mo ................. 9 Lincoln, Nebr ....................... 3 Oklahoma City, Okla ..-....... 5 Omaha, Nebr·--··················· 5 St. Joseph, Mo ..................... 5 Tulsa, Okla ........................... 6 Wichita, Kans·-····-············ 6 Outside .... - - - - ·········· 3 ·Sept. 1, 1924 $ 55,601,091 1,986,914 13,259,514 2,721,028 2,871,253 6,383,612 8,536,745 6,914,1 5I 2,188,588 852,703 Total.._···-·-·-----52 $101 ,3 15,599 Aug. 1, 1924 Sept. 1, 1923 $ 55,798,700 1,976,534 13,382,727 2,7u,388 2,409,702 6,342,426 8,520,393 6,852,468 2,154,610 881,255 $53,586,269 1,988,128 . 12,827,871 2,915,796 2,193,925 6,270,457 8,035,816 6,432,857 2,247,397 816,843 COLLECTIONS: The improved condition throughout the agricultural regions has resulted in a very marked improvement in collections during the past sixty days, and in fact better in the country than in the cities. At the end of August wholesalers of dry goods reported that collections were better than they had THE MONTHLY REVIEW been for the past three years, while in other lines of trade, colletions generally were good. Distributors of implements and farm machinery reported collections satisfactory, much better than a year ago, on account of the better prices farmers are receiving for their crops. The large city department stores' collections during August on accounts outstanding July 31 averaged 41.8% as compared with 41.6% in August last year. COMMERCIAL FAILURES: During August 123 commercial failures were reported in the Tenth District, 17 more than in July and 55 more than in August last year. The August amount of liabilities, $5,418,101, was the largest for any month this year, comparing with i1,150,169 in July and$1,083,184inAugustlast year. The failures by Federal Reserve Districts are reported by R. G. Dun & Company as follows: LIABILITIES NUMBER 1924 102 280 First, Bosto Second, New York...... Third, Philadelphia.... 63 Fourth, Cleveland...... I 58 Fifth, Richmon IOI Sixth, Atlanta.................. 102 Seventh, Chicago.... 183 Eighth, St. Louis...... 91 Ninth, Minneapolis.......... 57 TENTH, KANSAS CITY................ 123 Eleventh, Dalla 52 Twelfth, San Francisco.............. ....... 208 TotaL. ......... _ _ _ _ _ _ _ _ 1,520 1923 II8 273 80 l 16 94 92 168 45 82 68 68 .!.!J. 1,319 1924 1923 $ 1,635,381 $ 966,830 28,414,523 5,734,168 5,027,408 1,366,943 3,620,367 1,870,656 2,907,919 4, 233,075 1,945,017 5,598,o5o 1 6,163,449 3,46 ,597 9z2,409 694,960 1,314,746 939/258 5,418,201 1,083,184 1,020,596 938,431 2,258,779 1,952,756 $55,153 ,981 $34_,334,722 Mercantile Expansion of trade during August is reflected by the reports of wholesalers at the principal distributing centers in the Tenth District. All lines except drugs reported increases in sales over July, and all lines except drugs and millinery reported increases in sales over August, 1923. Comparison of August sales and out standings with the previous month and the month last year in percentages of increase or decrease follow: No. of Stores Dry Goods...... 3 Groceries·-·······4 Hardware .... - ..9 F urni ture. ____ .4 Drugs .............. 5 Millinery·-······•4 SALES Aug., 1924 Aug 1924 with with Aug, 1923 July, 1924 0.4 19.1 10.5 8.3 4.0 3-5 2.0 25.8 -o.8 -0.03 -33.I 42.4 OUTSTANDINGS Aug. 30, 1924 Aug. 30, 1924 with with July 31, 1924 Aug. 31, 1923 1 4•5 -7.6 0.9 2.0 3.3 -5.9 2.2 2.6 -4.9 -1.5 The latter part of August showed improvement in the demand for dry goods and an improvement in buying sentiment. The prospect for a larger crop of cotton than has been produced during the past three years has had the effect of reducing prices for raw materials substantially and there is an inclination on the 3 part of manufacturers to make moderate reductions in the leading staple cotton goods. Millinery sales during August reflected heavy fall buying. Sales were 42.4 % larger than in July but were 33.1% less than in August last year. Sales of groceries indicated a tremendous volume of goods going into consumption, the reports indicating very substantial gains over both July of this year and August of last year. The wholesale hardware reports showed a heavier volume of business in August than in the previous month, or in the corresponding month last year. Orders for all classes of merchandise have been promptly filled and prices steady. A healthy increase in the wholesale furniture trade was reported, sales running 25.8% above July and 2% above a year ago. Wholesalers of drugs reported a better feeling among the country customers with orders increasing in size but not larger than the corresponding month of last year. There has been some price advances of heavy chemicals at the source of supplies. Deliveries from the east have been held up somewhat but not seriously. The August business of distributors of implements and farm machinery was reported much better than a year ago, some of the distributors reporting up to 45% increase. The automobile tire business during August was about I 5% larger than in July and about double the busin ess of a year ago. RETAIL TRADE: The hot weather and the vacation season during August was not conducive to shopping, consequently the retail trade was seasonally dull until cooler weather came at the end of the month. The department store summary shows sales during August slightly under those of August last year. Retailers of men's and women's apparel reported sales seasonally light though the~, were greatly stimulated by the advent of cooler weather. Some increase in business resulted from the improved condition of agriculture and a good fall trade is anticipated. There has been no heavy stocking up by retailers as deliveries from factories are prompt and manufacturers' supplies of goods are reported ample for near future requirements. Prices are stable. Orders for shoes for future delivery are limited to thirty to sixty days because of frequent changes in styles. Labor The employment situation in the Tenth District improved during August. Some increase in the forces of railroad shops, in the metal mines, and increased building activity, together with the better farming condition were accountable for much of the increased employment. With wheat threshing, preparation of the ground for fall sown crops and sugar beet harvesting now in progress, there is a good demand for farm labor which is expected to continue through the corn gathering period. Factory employment, which was seasonally light during the month, showed some increase at the end of the month as the result o increased activity. CONDITION OF RETAIL TRADE IN CITIES OF TENTH FEDERAL RESERVE DISTRICT DURING AUGUST, 1924 Based upon Reports from Fifteen Department Stores Outside Kansas City (8) (3) Percentage increase (or decrease) of net sales during August, 1924, over net sales during same month last year................. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ Dec. 5-5 Dec. 9.0 Dec. 13.5 Percentage increase (or decrease) of net sales from July 1, 1924, to August 31, 1924, over net sales during same period last year...... _ _ _ _ _ _ _ __ Dec. 3.2 Dec. 5.5 Dec. u.7 Percentage increase (or decrease) of stocks at close of August, 1924, over stocks at close of same month last year............ ________________ Dec. 12.2 Dec. 1.8 Dec. II.4 Percentage increase (or decrease) of stocks at close of August, 1924, over stocks at close of July, 1924................ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ Inc. 7.2 Inc. 5.4 Inc. 13.4 Percentage of average stocks (selling price) at close of each month this season (commencing with July 1) to average monthly net sales (selling price) during same 602.8 673.1 529•4 period...... - - - - - - - - - - - - - · - - - - - - - - - - Percentageof outstanding orders (cost) at close of August, 1924, to total purchases (cost) during the calendar year, 1923 ........ _ _ _ _ _ _ _ _ _ _ _ _ _ __ 8.8 7.0 6.7 Percentage of collections during month of August, 1924, on amount of outstanding accounts on July 31, 192,-._ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ 40.3 48.6 34.0 Percentage of collections for same period last year_ _ _ _ _ _ _ _ _ _ __ 43.5 34.9 47.5 District (15) Dec. 9.7 Dec. 7.2 Dec. 7.8 Ine. 9.II 604. 7-4 41.8 42.6 THE MONTHLY REVIEW 4 Agriculture In Nebraska, the leading corn state of the Tenth District, early corn made good progress but late corn was injured by drought and high temperatures during the last half of August. The report indicated that the crop was still late but the bulk of the early corn should mature prior to the average frost-date. In Kansas corn improved in all except a few northern and western counties. It was entirely too dry in the north central district and only in spots was the August rainfall sufficient in the western third of the state. Generallv the distribution of this year's corn production in the state is mu'.ch better than last year. Condition Condition Percent Not a single county promised a total failure, whereas there were September I August I Change many such in the southwestern third of Kansas last year. Most Colorado ........ _ _ _ _ _ _ _ _ _ _ 89.7 93.0 -3 3 Kansas .. _ _ _ _ _ _ _ _ _ _ _ _ IJ8.1 II4.1 4.0 of the corn in the southern half of the state was already safe Missouri .................... _ _ _ _ _ _ _ 100.6 95.9 4,7 from frost damage by early September and with an average Nebraska .. _ _ _ _ _ _ _ _ _ _ _ 105 2 104.6 0.6 killing frost date most of this season's crop will mature in good New Mexico ........ _ _ _ _ _ _ _ _ _ 101.0 101.5 -0,5 shape. This year's crop is the largest crop Kansas has produced Oklahoma_······---------II7.6 no.I 7•5 since 1915. It is 26,000,000 bushels more than last year's crop Wyoming_············-··-------· 87.8 88.9 -1. 1 United States .......·------············· 96.0 95.9 0.1 and 61,000,000 bushels more than the five year average producThe September I forecast of the United States Department of tion for 1918-22. The Oklahoma report says drought and grasshopper damage Agriculture gave promise of an increase of 34,000 bales of cotton between August I and September I in the Tenth Federal Reserve knocked off about a million bushels of the state crop during District. The forecast also showed a gain in the District of 19,- August. In that state early corn matured by September 1 and 321,000 bushels of corn, a gain of 168,000 bushels of spring it was generally in good to excellent condition. Late corn has wheat, a gain of 190,000 pounds of tobacco, and decreases of been more or less injured by the hot weather and scant moisture 929,000 bushels of oats and 444,000 bushels of potatoes. The but was in fairly good condition and maturing rapidly. In Missouri corn made fine progress during August. The following shows the September forecast as compared with the August I forecast and the final estimate for 1923 on seven im- Missouri crop bulletin of September I said the bulk of the corn crop was fast approaching maturity. Most of it in southern and portant crops in the District. central sections already was practically safe from frost damage. Forecast Final Est. Forecast In Colorado the corn crop was severely injured by drought Sept 1, 1924 Aug. I, 1924 1923 Cotton, bales.... I/298,ooo 1,264,000 678,000 during August, and the estimate of September 1 was about oneCorn, bushels _ _ _ _ _ _ _ _9,1,026,000 471,705,000 514,530,000 half of last year's crop. Spring Wheat, b u ~ - - - - - 12,094,000 n,698,000 11,926,000 COTTON: According to the September 1 forecast of the All Wheat, bu ............... _ 300,482,000 I 80,333,000 300,314,000 Oats, bushels........ _ 175,708,000 176,637,000 158,756,000 crop reporting board of the U. S. Department of Agriculture, Potatoes, bushel 30,963,000 33,766,000 31,407,000 eight states west of the Mississippi river are scheduled to proTobacco, lbs ................... _ _ __ 4,422,000 4,032,000 3,842,000 duce this year 7,496,000 bales of cotton of 500 pounds each. This I CORN: A corn crop of 491,026,000 bushels in the Tenth Dis- total indicates an increased production over last year for the trict was forecast by the U. S. Bureau of Crop Estimates and eight states of 1,219,000 bales or 19.3%. The 1924 production in State Boards of Agriculture based on condition September I. the eight states is 59% of the total cotton production in the This total was an increase for the District of 19,321,000 bushels United States, forecast on September I as 12,787,000 bales. over the forecast of August I. The September total; however, The figures in bales follow: Forecast Final 1923 still left this year's prospective crop about 23,504,000 bushels Sept. I 1924 Census Ginnings below that of 1923. The corn forecast for September I for seven Oklahoma.·-------------··· 1,289,000 655,000 states is here compared with the August forecast and the final Missouri...... 228,000 126,000 estimates for 1923: New Mexico........ 65,000 *36,000 The condition of all farm crops improved between August I and September I in Kansas, Missouri, Nebraska and Oklahoma and declined in Colorado, New Mexico and Wyoming, according to the report of the Bureau of Crop and Live Stock Estimates, U. S. Department of Agriculture. The report also shows that the composite condition of all crops on September I was above normal (100%) in five of the seven statt>s whose areas, all or in part, form the Tenth District. The condition figures: Est. Kans MissourL----··Nebrask Oklahoma ...... New Mexico .... Colorado.. - .. Wyoming............ _ Sept. I 1924 148,131,000 I87,495;ooo 209,529,000 73,440,000 4,900,000 18,780,000 3,000,000 Seven States .... 645, 275,ooo Tenth DistricL ...·-········-········ 491,026,000 United State 2 5I 3,000,000 Est. Aug. I 1924 123,135,000 170,327,000 2II,046,ooo 74,4 19,000 4,968,000 25,180,000 Final Est. 1923 1'22,149,000 I 96,86o,000 272,052,000 37,536,000 3,624,000 3,095,000 4,050,000 612,170,000 47 1,7°5,000 674,521,000 514,530,000 3 046,000,000 ----2 576,000,000 37,250,000 The reports showed that Kansas corn gained 24,996,000 bushels over the August forecast. Missouri registered a gain of 17,168,000 bushels, and about 3,500,000 of that gain was in the nineteen Missouri counties belonging to the Tenth District. On the other hand the forecast for September reduced Nebraska's corn crop 1,517,000 bushels. Oklahoma's crop was reported 979,000 bushels less than in August. Colorado reported a reduction of 6,400,000 bushels. According to the Government's reports Kansas and Oklahoma are the only two important corn producing states in the Union . tO show larger production this year than in 1923. Texas............ 4,284,000 P,.rkansa 1,109,000 Louisiana...... 371,001 Arizona ...·-----··-···············-·---89,000 California.... 61,000 4,340,000 620,000 368,000 78,000 54,000 Eight States ................ - - - - - - ·········-···· 7,496,000 Tenth District.. 1,298,000 United States. 12,787,000 •-Includes All other States. 6,277,000 678,000 10,u.-8,000 It is noted that Oklahoma, New Mexico and Missouri nearly doubled their cotton production this year. Oklahoma, with an increase of 634,000 bales, or 96.8%, now ranks second among the states in cotton production, with Texas leading. New Mexico has an increase of 29,000 bales or 80.6% although the 1923 figure includes cotton produced_ in. other st.ates not listed. Missouri has an increase of 102,000 bales or 8o.q%. HAY: The September forecast promises a total of about 12,150,000 tons of t ame hay in the Tenth District, which is approximately 1,600,000 tons less than last year's crop. The forecast on wild hay would indicate about the same rate of decrease although complete reports are not available. Dry weather in August reduced the condition of alfalfa in Nebraska, although other tame hay yielded well in that state and wild hay averaged 5 THE MONTHLY REVIEW little less than last year. There was some increase in the yield of red clover but the crop of timothy and mixed hay fell slightly below a year ago. In Missouri there was too much rainfall during the harvest season and the crop, although generally heavy, suffered some injury in quality. In the southern counties an excellent crop of wild hay was reported. In Oklahoma rains improved the hay crop in many sections, but taking the state over there was little change during August. The south central and southeast sections suffered from drought. Grasshoppers did .some damage in the western, southwestern and south central district. Wild hay was generally in better condition than tame. SUGAR BEETS: Condition of the sugar beet crop in Colorado on September 1 was three points less than on August 1, or 85% compared with 95% last year. Beet production is placed at 2,199,000 tons, compared with 1,962,000 tons last year. The total production of sugar should be about 10% more than last year when the production was 240,000 tons. In Nebraska sugar beets improved during August and the condition of 91% on September 1 forecast a crop of 675,000 tons against 640,000 tons last year. BEANS: The Colorado bean crop declined thirty points in the condition estimate during August and reached September showing only 43% of normal crop compared with 73% of normal on August 1 and 91% a year ago. This low condition, the result of drought in the dry farming areas, promised a crop of 1,224,000 bushels compared with 2,020,000 bushels estimated on August 1 and 1,360,000 bushels last year. FLAX: The flax crop in Kansas, Nebraska, Colorado· and Wyoming is estimated at 637,000 bushels against 301,000 bushels last year, a·n increase of 336,000 bushels, or l 11.2%. BROOM CORN: Production in Oklahoma, Kansas, Missouri, Colorado, and New Mexico was estimated at 63,800 tons against 55,100 tons in 1923, an increase of 8,700 tons, or 13.4%. Oklahoma, with 43,000 tons against 29,800 tons last year, led all states in the Union in broom corn production. Grain Marketings Receipts of wheat at Kansas City, Omaha, St. Joseph and Wichita during August, and also during the first two months of the 1924-25 wheat year, far exceeded receipts for any previous month or any previous two months in the history of these four primary markets of the Tenth Federal Reserve District. The August receipts of wheat at the four markets was 41,029,950 bushels, 9,369,900 bushels or 29.6% more than the July receipts, and 20,131,800 bushels or 96.3% more than the wheat receipts during August, 1923. The previous high record for one month's receipts of wheat at these markets was in July, 1921, when the total reached 32,626,500 bushels. During July and August receipts of wheat at the four markets were 72,690,000 bushels, equal to 24.2% of the 1924 wheat crop in the Tenth District as estimated by the Department of Agriculture on August I. This year's receipts for the two months was 34,685,700 bushels or 91.2% greater than the marketings during July and August in 1923. August receipts of other grain, except kafir, were larger than in July. Compared with a year ago receipts of corn, rye and kafir were heavier, and receipts of oats and barley lighter. Receipts of grain at the four markets during August, with totals for July, 1924 and August, 1923 are here shown: Wheat Kansas Ciey ............ 23,696,550 Omah 9,969,4oo St. Joseph·-·········- 2,634,800 Wich1ta... ·-··---·-•·· 4,729,200 Corn 1,032,500 1,765,400 1,338,000 100,800 Oats Rye Barley Kafir 829,6oo 51,700 40,500 105,6oo 1,514,000 176,400 129,6oo 230,000 9,000 15,75° 18,000 3,6oo --------- August, 1924. ____ -41,029,9 50 4,236,700 2,,591,600 237,100 189,450 105,600 July, 1924·•·---·-···3I,66o,o50 3,896,650 1,021,000 76,500 47,300 258,700 August, 192J--•···-20,898 :I 50 3,986,000 4,982,100 182,700 462,550 35,200 Higher prices were paid during August for all grain than had been recorded since the year 1920 when wheat marketed in August was selling around $2.75, corn $1.65 and oats 70 cents. The average cash price paid for No. 1 dark hard winter wheat at Kansas City during the week ending August 1 was $1.30 against $1.01 on August 3, 1923, $1.13 on August 4, 1922, and $1.22 on August 7, 1921. Cash prices of No. 2 white corn at Kansas City on August 1 averaged $1.06 per bushel as compared with 83 cents on the corresponding date last year, 55¾ cents on August 4, 1922, and 47¼ cents on August 7, 1921. The same upward trend was shown in the average prices of oats, which was 55 cents per bushel at Kansas City on August 1, 1924, as compare'd with 40 cents on August 3, 1923, 35 cents on August 4, 1922, and 32¼ cents on August 7, 1921. Flour Milling Production of flour at Southwestern mills during August averaged 76.6% of full-time capacity, compared with 65.4% in July and 69.5% capacity during August, 1923. Total production for the month was 2,180,184 barrels, an increase of 267,513 barrels or 14% over the July output and an increase of 140,945 barrels or 6.9% over total production in August of last year. The number of barrels of flour produced at the milling centers during August, ,1924, and 1923 is here given, as compiled from weekly reports to the Northwestern Miller: Aug., 1924 Kansas CitY·-······················- - - - · · ···- ·············· 519,230 Omaha..... ·-····· 97,483 Salina.......... ............................ I 20,98 I St. Josep ................ 197,038 Wichit .................•.... 187,943 Outside............. ........ 1,057,509 Au" 1923 501,988 91,696 98,664 1:12,331 195,506 1,029,054 Total............................ _.......................... · ........................2, I 80,184 Livestock The condition of all live stock in the Tenth District, as a whole, is better than the__average for this time of the year, according to reports received. While the condition of cattle in Colorado on September l was 90% of normal, as compared with 93% on August 1 and 104% on s~ptember I last year, the reports said that the ranges had not been over-stocked and the ripened grass of fine quality had enabled stock to put on good firm flesh. The heavy movement of cattle from the pastures in Kansas, Oklahoma and Nebraska started later than ordinarily, on account of the fine pasturage which caused pasturemen to hold back for a longer grazing period. At the end of August, however, the movement was well under way, with large numbers of cattle coming from the ranges in Southwestern Texas, Southern New Mexico, and Arizona where drought conditions prevailed. The reports •indicate that there are fewer cattle in the District than a year ago, and that there has been a reduction of herds, particularly on the ranges. The sheep industry is in better position, due to good prices of sheep and wool. Some expansion is noted. This is not so noticeable on the big range areas, but is indicated by small farmers all over the District increasing their flocks. The movement of western lambs from the mountain states, starting late in August, was in full swing during the early part of September. . The hog situation in the District showed little change during August. There are fewer hogs on farms than a year ago, according to reports. A great many pigs have been carried o~ pasture with as little other feed as possible, though some feeding of the new corn crop was reported at the beginning of September in parts of Kansas and Oklahoma. MAR KET MOVEMENTS: The supply of cattle on the six leading markets of the Tenth District during August totaled 500,739 head, the largest for any month since last November . The total exceeded the July receipts by 111,123 head but fell I 6 'THE MONTHLY REVIEW 164,382 head, or 24.7%, below the receipts in August, 1923. The movement of cattle from the ranges and pastures of the southwest, starting in the latter part of August,1 continued heavy and on September 8 reached the peak of 63,709 head (including calves) at Kansas City, which was a new world record for a single day's receipts for all livestock markets. The market supply of calves during August was in line with the cattle receipts. The total of 105,196 calves received was 20,979 more than were received in July and 37,941 or 26.5 % less than were received in August, 1923. MEAT PACKING: The returns from six market centers showing packers' purchases of animals for slaughter indicated heavy beef and mutton packing operations at the various centers of the District. The seasonal decline in the number of hogs marketed during August, however, was reflected in reduced pork packing operations. The reports on packers' purchases follow: Kansas City........ Omaha .. St. Joseph ..........._........ Denver The hog supply during August at these markets was the smallest since October, 1922. The number of sheep marketed during August was the largest for any month since last October and 136,171 head larger than the receipts in August, 1923. The receipts of horses and mules were more than double the receipts in July and 20.2% greater than the receipts in August, 1923. August receipts of live stock at the six markets are here shown with totals for July of this year and August of last year for comparison: Cattle Calves Hogs Sheep Kansas City........................237,757 65, 197 7,702 13668 4,003 8,123 131,628 339,459 90,208 60,386 499 8,941 2,724 l,477 706 4,717 6,503 231,962 240,548 140,924 33,731 16,690 40,395 105, 196 84,217 143, 137 704,250 937,988 907,252 631,121 450,692 494,950 II,619 5,39 1 9,664 Horses Mules Omaha.................................. 133,942 St. Joseph............................ 49,975 Denver..... 26,724 Oklahoma City.. 28,768 Wichita .................... ............ 23,573 August, 192 July, 1924 ...... - 500.739 389,616 August, 1923........................ 665,121 529 1,466 Oklahoma City Cattle 95,4 17 .... 79,769 3 1, 299 ...... 9,624 18,966 Wichita .......... _6,965 August, 192 July, 1924...... August, 192 ···············242,040 235,027 270,550 Calves 42,644 5,495 n,520 2A37 7,385 3,578 73,059 61,405 84,070 Hogs Sheep 168,246 169,693 87,801 23,3 13 12,892 37,760 79, 124 147,54° 58,176 12,333 379 2,220 499,705 683,875 299,772 3 14,353 635,07° 23°,599 Mining ZINC AND LEAD: The month of August showed record breaking shipments of zinc ores from the Tri-state district, which includes Missouri, Kansas and Oklahoma. The total tons of zinc ore shipped during the month, the average price per ton paid during the month and the total value of ores, compare with the records of shipments, average price and values in July, 1924, and August, 1923, as follows: Tons August, 192,4-_ _ __ _ _ _ 73,726 July, 1924........ 6,348 August, 192 3,067 Average Price Value $42.19 39.31 38.34 $3,u1,226 1,821,939 1,651,572 While some weeks in other months showed larger shipments the August totals reached a very large figure an<l indicated a return LIVE STOCK PRICES: Very slight changes were recorded of demand for ores from this field. The month opened with in the prices of the better grades of steers at the markets during prices at $40 per ton and closed with prices at $43 to $44 per August. Choice to prime light weight steers at K ansas City ton, a net advance of $3 to $4 per ton. The average weekly averaged $10.60 per cwt. during the closing week, or 66 cents shipment for the month was 14,745 tons. The month opened below the average for the corresponding week in August, 1923. with surplus stocks at 56,000 tons and at the end of the month Stocker and feeder cattle exhibited the same price tendency, stocks were estimated at 47,000 tons, a decrease of approxithe average for feeder steers, 750 pounds up, being $6.76 per mately 9poo tons. This compares with 50,000 tons one year ago. cwt. for the week ending August 23, or 46 cents below the aver- Production was increasing at the end of the month. age for the corresponding week last year. Prices of lambs and The most radical change in price conditions came in lead ores fat sheep were fairly steady during the month at 25 to 50 cents when the market advanced from $8 5 per ton at the end of July per cwt. above prices for the corresponding period last year. _ to '1,1 IO per ton at the end of August. This was an advance of Cl0sing prices of hogs for the month of August were 35 to 75 $25 per ton in 30 days. As there was a considerable stock of cents higher than those of a month ago and 40 to 50 cents above ores in the district this advance helped swell the value of these values of August, 1923. The top for the month was $10.30, stocks and already a considerable part of these stocks have been paid in the first week. thrown upon the market. The lead shipments increased from 1,240 tons the first week of the month to over 2,000 tons the STOCKER AND FEEDER SHIPMENTS: The heavier last three weeks of the month. The average weekly shipment receipts of cattle at the markets of the District during Augast for the month was 1,892 tons of lead ores and the average price resulted in an increase in countryward shipments of stock and was $102.73. The total shipment of lead ores for the month feeding cattle, calves and sheep. This movement gained con- was 9,458 tons valued at $971,694. This compares with the siderable headway during the latter part of the month and with record for July, 1924, and August, 1923, as follows: corn belt buyers at the markets the large volume of animals Tons Average Price Value suitable for going back to the country for stock and feeding August, 192.+-_ _ _ _ _ _ _ _ _ 9,458 $102.73 '$971,694 purposes was purchased. Shipments of hogs to the country as July, 1924...... 5,125 1.. 81.48 4 17,585 ...............4,078 78.76 321,233 feeders, however, were double the July shipments, but with August, 192 that exception were smaller than in any other month since Stocks of lead ore were estimated at 5,150 tons -at the end of July, 1922. Returns from four markets show countryward July and at the end of August at 2,000 tons. This compares with shipments of stockers and feeders for August as follows: no stocks one year ago. There has been noticeable change in thetrend of mining activ . Cattle Calves Hogs Sheep ities during the last two months. Many leases are being taken Kansas CitY-··-··4,236 6,955 40,095 95,07 2 in the old Missouri camps and in extension of ~hese old camps Omaha.. 174,280 36,565 342 and new drilling activity is now in progress. Also many small 2,066 St. Joseph ........ 965 3 1,075 ·······-······· l 1,170 Denver 12,335 2,834 16,560 935 prospectors are taking leases with the idea of opening up shallow lead deposits in the Missouri camps. It would appear that MissAugust, 1924............ 262,010 ...... 155,142 II,096 7, 237 ouri lead and zinc camps will be more active during the n~xt July, 1924.... _ •. 65,368 5,400 105,834 3,773 August, 192 13,0 47 three months than for a period of many months. 279,780 177,762 39, 151 7 THE MONTHLY REVIEW Another development of note is the extension of the Oklahoma district northwest of Picher in a northwestern direction into new territorv in Kansas. Also a new strike of interest has been reported ne~r Oswego, Kansas, quite a long ways outside the known extensions of the ore bodies in the Kansas district. Many operators are reported to be scrambling for leases in the vicinitv of the new strike. BITUMINOUS COAL: The coal mining industry in the Tenth District exhibited but slight improvement in activity during August. Production during the month was at an average of 48.2% of full time capacity in the six coal mining states, compared with 41.8 % in July and 52.7% in August, 1923. Lack of market demand is assigned as the chief cause of the loss of operation, being 45.5 % of full time capacity: Colo. Kans. Mo. N. M. Okla. Wyo. Dist. Transportation Disability...................... 1.4% 0.9% 1.0% 0.1% 0.7% 0.3% 0.7% 0.1 2.2 o.8 0.7 Labor Shortag 0.9 0.1 Strikes .. ...... 0.5 0.2 6.2 4.6 7.2 0.3 Mine DisabilitY ········-······ 5.8 7-9 40.8 No Market.. .....................-46.3 32.2 67.6 45.5 53-4 32·9 0.2 0.4 0.9 All other causes .......·-······ ...... -- -- -- -- -- -- -- Total loss all causes.......... 53.6 44.1 77.6 33.3 61.1 41.3 51.8 Percent Production..........46.4% 55.9% 122.4% 66.7% 38.9% 58.7% 48.2% Production of soft coal in the United States during the calendar year to August 30 was 294,614,000 tons, compared ;ith 366,349,000 tons for the corresponding period in 1923. SALT: Production of salt durinf the year to date is reported less in tonnage than during the corresponding period last year. A tendency towards increasing demand and production, with the accompanying stiffening of prices, has come during the late summer and fall season. There are eleven salt mines in Kansas. Some of them are operating part time. Petroleum Production of crude oil in Oklahoma, Kansas, Wyoming and Colorado averaged 723,077 barrels per day during August with a total output for the month of 22,415,400 barrels. This is the largest monthly production of record from the beginning of 1920 to date. The nearest official total for the four states for any month was 22,185,000 barrels or a daily average of 71 5,634 in May, 1923. The August output was 1,719,400 barrels more than reported for July and 4,657,400 barrels or 26. 2% more than for August, 1923. All four states showed gains over July. Compared with August 1923 Oklahoma, Wyoming and Colorado showed gains and Kansas a loss. Gross production of crude oli in barrels, is here shown: *Aug., 1924 Oklahom-------···············16,292,600 Kansas........ 2,579,350 Wyoming...... 3,494,050 Colorado.. 49,400 **July, 1924 **Aug., 1923 12,868,000 14,840,000 2 ,734,000 2,452,000 2,146,800 3,357,000 8,200 47,000 TotaJ _ _ __ _ ··················· ......... 22,415,400 *-Estimated American Petroleum Institute. **-Official, U.S. Geological Survey. 20,696,000 17,757,000 Although fewer wells were completed in August than in the previous month of July or in August last year, the reports show new production in August was 9. 6% greater than in the previous month and 44% greater than in the corresponding month last year. The record follows: Completions Oklahoma.. Kansas .......... Wyoming .................... Colorado ......... August, 1924......................... July, 192 August, 1923 .................. Production ......357 121,870 ......... 102 13,8u ------- 78 --------- 3 7,5 25 2,000 540 652 75° 145,206 132,517 100,838 Riggs-Wells Drilling 1,375 302 4o5 53 2,135 2,283 2,120 In Oklahoma and Kansas 68 refineries were in operation on September r as compared with 69 on August I and 78 on September I last year. Daily runs of crude oil to stills on September I were 218,075 barrels, against 205,750 barrels on August I and 175,000 barrels on September 1, 1923. Stocks Qf crude oil on hand at the end of July-were the-largest on record, totaling II3,260,350 barrels, which was""1?,908,752 barrels, or 10.7% , more on the corresponding date · in 1923. Building Reports of the building departments in eighteen cities of the Tenth District show that 2,890 permits were issued during the month of August for buildings to cost $9,986,725. Although the number of permits issued in August has been exceeded in three previous months of the year, the estimated cost of August build .. ing was larger than in any other month of the current year. It exceeded the total for August, 1923, by $3,3u,381 or 49.6%. The returns from these eighteen cities show a very large increase in building activity over previous months, a considerable part of the increase being due to the issuance of permits in several cities for school buildings to meet the demand of increasing population. Increases over last yt>ar were recorded for eleven of the eighteen cities reporting. The building record for August follows: Permits Casper, Wyoming·--·····················----Cheyenne, Wyoming.............................................. Colorado Springs, Colorado.................................. Denver, Colorado ...........................· - -- - ·· Hutchinson, Kansas ... _ _ _ _ _ _ _ Joplin, Missouri ....................................- - Kansas City, Kansas .............................................. Kansas City, Missouri .......... ........._ _ _ _ Lincoln, Nebraska.................................................. Muskogee, Oklahoma.......... _ _ _ _ Oklahoma City, Oklahoma.................................... Okmulgee, Oklahoma ............ _ _ _ _ _ _ Omaha, Nebrask---____ Pueblo, Colorado ............. _ _ _ _ _ _ _ St. Joseph, Missouri. ........... _ _ _ _ _ _ _ Topeka, Kansas ........ - - - - - - - - Tulsa, Oklahoma...... _ _ _ _ _ _ _ _ _ Wichita, Kansas...................................................... 70 I9 71 736 37 53 200 444 108 Est. Cost '/, 803,295 236 17,780 u9,735 1,565,600 43,105 213,242 412,215 2,251,195 179,688 33,605 1,724,406 12,400 1,435,015 156,852 78,800 200,407 528,135 2II,250 Total, August, 1924...............· - - - - · · ········2,890 Total, August, 1923.......................... 2,930 '$9,986,725 '/,6.675,344 22 1 57 9 282 108 63 132 143 Percent Change 149•5 -70.8 54·9 9.4 307.8 -4.9 6.6 97.9 -29.3 -49.4 231.9 ,9.8 39.3 1 94•9 -36.5 79.8 4.4 -3 2 .7 49.6 Building Material LUMBER: Although the footage volume was practically the same this year to date as last year, a 10% reduction in prices automatically reflected a 10% reduction in money volume in wholesale lumber sales. The footage for August was below that of August last year. This is largely accounted for by the decrease in the timber footage. Sales of lumber in retail yards during August were below the normal August business for the past four or five years . This is attributed to the fact that the farmer who is the chief purchaser at this time is busy plowing and also is using his wheat returns to liquidate his loans and is going to be more careful of indebtedness in the future. A good business is anticipated for December, January and February. August retail business-was season"lly slightly larger than in July. Retail prices are a little higher than in the spring but practic;;illy the same as last vear at this time. PAINT: Sales· of paint reported by manufacturers and wholesalers is about I 5% above sales of last year to date and Fices are £rm. A good spring business is anticipated, as the farmer who has neglected his buildings while meeting more~;'pressing demands for his funds, is expected to do considerable building and repairing. 8 THE MONTHLY REVIEW GLASS: Wholesalers and manufacturers of glass in this District report sales about 25% below last year's sales to date. Over-production of window glass during the spring resulted in a 10% to 15% price cut in July and August. Window glass plants were not running over 50% of capacity production during the summer, with quite a few plants shut down. Plate glass production has been holding up well with prices firm. BUILDI G BRICK: The year's business to date is about 7 5% of la~t year's business, according to reports. Prices are firm and kilns operating at normal with the labor supply plentiful and no wage changes. Manufacturers anticipate a favorable spring business as the result of improved agricultural conditions, but improvement is not anticipated this late in the year. Business Conditions in The United States Production in basic industries was maintained during August at about the same level as in the two preceeding months and factory employment showed a slight increase. Wholesale prices, especially those of agricultural products, showed a further advance. PRODUCTIO : The Federal Reserve Board's index of production in basic industries, adjusted to allow for seasonal varia-. tions continued in August at the same level as in June and July.' Production of steel was substantially larger than in July and the output of pig-iron and mill consumption of cotton also increased. Sugar meltings and production of anthracite and zinc on the other hand, were smaller. Factory employment incr~ased slightly in August and average weekly earnings incre_ased 4% owing to less part time employment. Larger working forces were reported in the textile, leather and automobile industries. Building contracts awarded, contrary to the usual seasonal trend, were 3% larger· in August than in July. Crop conditions showed further improvement in August and the September 1 estimates of production by the Department of Agriculture were larger for wheat, oats, barley and potatoes. Estimated yields of corn, cotton, and tobacco, however, were. smaller. Harvesting has proceeded rapidly this year, and the August marketing of wheat was larger than in either of the last two years. . TRADE: Bank debits, which reflect the volume of business transactions settled by check, showed about the usual seasonal decrease in August, but were larger than a year ago. R.ailroad shipments increased slightly, as a result of larger loadings of miscellaneous merchandise, grain, and coal. Wholesale trade was 7% larger than in July, owing to seasonal increases in sales of drygoods, shoes, and meat, but continued to be smaller than .a year ago. Department store sales showed less than the usual increase in August and were 7% smaller than last year. Mail order sales increased more than usual at this season and were 1% larger than in August, 1923. Merchandise stocks of department stores at the end of August, for the first time this year, were smaller than on the corresponding date ?f 1923. PRICES: Wholesale prices, as measured by the index of the bureau of labor statistics, increased 2% in August and were at about the same level as a year ago. The advance was due large to further increases in pric s of farm products and foods, though all other commodity groups except metals, and fuel also advanced. During the first three weeks of September prices of wheat, rye, wool and rubber increased while those of cotton, silk, petroleum and metals d~clined. BA K CREDIT: Loans and investments of Member Banks in leading cities contin ued to increase during the four week period ending September IO and on that date reached a record figure about 1,000,000,000 above the level of three months earlier. The largest increase was in loans on stocks and bonds. Commercial loans also increased owing partly to seasonal de- mands for credit. The growth of investments by Member Banks continued though at a somewhat slackened rate. At the Federal Reserve Banks there was a further increase in the holdings of Government securities and of acceptances, with the result that in the middle of September, although discounts were at the low point for the year, the total volume of reserve Bank credit was higher than at any time since last spring. Seasonal increase in the demand for currency was reflected in a decline in cash reserve and at the Reserve Banks in certain of the agricultural districts in an increase of Federal Reserve Note circulation. Slightly firmer conditions in the New York money market in late August and early September were reflected in a slight advance in the rate on commercial paper from 3%-3¾% to 3¾%. After the middle of September a recurrence of easier conditions followed Treasury operations. The September 15 offerings of one year Treasury Certificates bore 2¾'% interest, the same rate as the six months issue sold in June. STATEME T OF CO DITJON FEDERAL RESERVE BA K OF KANSAS CITY, I CLUDI G BRA CHES At Close of Business Sept. 17, 1924 Sept. 19, 1923 RESOURCES Gold with Federal reserve agen....__ _ _ _ _ _ .'f, 6o,292,155 $ 43,959,500 Gold redemption fund with U. S. Treasury........ ·-····· 2,480,776 3,821,963 Gold held exclusively against F. R. notes·--····...... 62,772,931 Gold settlement fund with F. R Board .... - - - - 31,200,271 Gold and gold certificates held by bank...................... 3,964,114 47,781,463 37,751,822 3,437,745 Total gold reserves ............ _ _ _ _ __ Reserves other than gold .....................- - - - - 97,937,316 2,641,5u 88,971,030 2,782,904 Total reserves ...................................................... 100,578,827 Non-reserv-! cash.-.................. . 2 222,495 Bills discounted: Sec. by U. S. Government obligations _ _ __ 579,700 Other bills discounted. _________ 9,618,808 91,753,934 4,997, 135 Total bills discounted.-. ........·-················-···-···· 10,198,508 Bills bought in open market.......................................... 3.675,958 U. S. Government securities: Bonds ............................................· - - - - - - 1,612,200 Treasury notes. ______ .................................. 24,405,400 Certificates of indebtednes.,,___ _ __ 8,909,5oo 43,920,780 2,087,343 14,284,190 29,636,590 831,850 10,044,800 178,500 Total U.S. Government securities·--··············· 34,927,100 Municipal warrantS....------······················ 48,801,566 Total earning asset~----Uncollected items.. -----···························· 46,33 2,447 Bank premises........ ----······································ 4,595,2 13 All other resources .......................................................... 1,064,316 57,3 29,273 41,905,433 4,969,524 1,o65,138 TOTAL RESOURCES ........ ·-··--·········$203,594,864 'f,202,020,437 LI ABILITIES F. R. notes in actual circulation.-................................ $ 64,989,890 1, 63,309,085 Deposits: Member Bank-reserve account.............................. 81,347,426 77,815,689 Government ................._ _ _ _ _ _ _ _ _ 827,213 2,071,075 Other deposits.................................... ........................ 1,177,388 683,061 Total deposits ........ _ _ _ _ _ _ _ __ 83,352,027 g:~~;:~~::itbili ty items ......................... •···:·············· 4o,793,827 4,365,200 Surplus .....·-·-····-········································· ... ·.............. . 9,495,540 All other liabilities .......................................................... 598,380 80,569,825 43,085,532 4,55o,750 9,488,300 1,016,945 TOTAL LIABILITJES... --•··•··············'f,203,594,864 'f,202,020,437 Ratio of total reserves to deposit and F. R. note liabilities combined ..........- - - - - - 67.8% Contingent liability on bills purchased for foreign correspondents ..·- ---------·······'f, 999.672 1> 1,436,804 Total clearings for week.--··-·········································$217,o22,270 $I 87,345,925 1,142,693 Total number of items handled.---- ·-·························· 1,304,545
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