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THE MONTHLY REVIEW
OJ Agricultural, Industrial, Trade and Financial
Conditions in the Tenth Federal Reserve District
FEDERAL
RESERVE
BANK
OF
KANSAS
CITY
M. L. McCLURE, Chairman and Federal Reserve Agent
A. M. McADAMS, Assistant Federal Reserve Agent and Secretary
P. W. MORGA~, Director of Research
Vol.
I5
KANSAS CITY,
L
Mo.,
ATE August reports from over the extensive agricultural
area embraced in the Tenth Federal Reserve District
indicated widespread rains and cooler weather had
effectually broken the severe drought which continued from
late June through July to near the middle of August. Corn,
having suffered severe injury from the exceptionally hot and
dry weather, responded favorably to the lower temperatures and
precipitation, and in many sections there was a promise of fair
to good yields, while in other sections many fields were beyond
help ·and corn was being conserved for silage. Other fall crops,
including sorghums and forage crops, improved somewhat under
the changed conditions, pastures took on new growth and the
outlook for livestock improved.
While a complete inventory of crop losses by Tenth District
farmers because of the drought is not possible to obtain at this
time, the official reports of the United States Department of
Agriculture and State Boards of Agriculture indicate that all
growing crops deteriorated to a greater or less extent and probable yields would be smaller than last year and below the tenyear average. On the other hand, the official reports showed
crops of wheat, oats, rye, barley, sugar beets, broom corn and
potatoes were less affected by the unfavorable conditions at
midsummer andf yields"'generally were higher than last year.
Tenth District Business Summary
SEPTEMBER 1,
1930
Nu. 9
BUSINESS IN THE TE TH DISTRICT IN JULY
Percentage of increase or decrease (- ) for the month over t he preceding month
and the corresponding month last year.
July 1930 Compared with
Ban~~g .
. .
J une 1930 J u ly 1929
Debits m 29 c1t1es.......................................................... - r.o
- 18.4
Federal Reserve Bank clearings..................................
0.2
- 15.6
Loans, 56 member banks.............................................. - 2.3
- 9.4
Investments, 56 member banks.................................. - o. r
- 5.1
Demand deposits, 56 member banks.. .. ......................
1.4
- 3.7
Time deposits, 56 member banks................................ - 2.2
3.5
Savings deposits, 49 selected banks.... ........................
o.6
- o.6
Savings accounts, 47 selected banks·- -·······················
1.4
6. 1
Trade
Wholesalers' sales, 5 lines combined...................... ...... - r.r
- 16.2
Retail sales, 38 department stores.............................. - 15.8
- 6.3
Lumber sales, 171 retail yards........ ............................
I 5.9
Construction
Contracts awarded, value............................................ -69.9
Building permits in 20 cities, value............................
16.3
Grain receipts at 5 markets
Wheat..... ........................................................................
488.4
Corn·--· ......................................................................... -35.8
- 12.4
Oats .................................................................................. - 54.6
- 38.6
Rye..................................................................................
212.1
-32 .0
Barley.. ............................................................................
34.2
---64.2
Kafir ...... .......................................................................... 1 1. 5
-66.o
Livestock receipts a t 6 markets
Cattle...... ........................................................................
3.1
Calves................... ...........................................................
17.0
- 4.0
- 16.7
~hoe~sp.:::.·.·..:::::::::::::::::::::::::::::: . ::::::::::::::::::::::::::::-::::::::::: - : ~:~
8.6
Horses and mules.......................................................... - 54.0
-69.1
Production
Flour................................................................................
10.6
I.O
Coal..................................................................................
6.9
-16.9
Petroleum........................................................................ - 3.0
- 1 3.9
Cement............................................................................
0.1
9.7
Zinc ore (shipped).......................................................... - 41.7
-49.6
Lead ore (shipped)........................................................ - 47.5
- 52.6
Meat packing at 6 centers
Cattle .... .. ....................................................................... .
8. 8
- 2.0
Calves .. ................. ..........................................................
22.8
- 0.7
Hogs ............................................................................... - 21.4
- 18.2
Sheep...............................................................................
10.7
16.6
ETAIL trade in the Tenth District in July, as measured
by dollar sales of thirty-eight department stores, exhibited somewhat more than the customary decline from
June to July and was about 6 percent below that for July 1929.
Wholesale trade, taking the combined sales of firms reporting,
was 1 percent smaller than in June but 16 percent smaller than
in the same month last year.
Arrivals of new wheat at primary markets during July were
nearly 7.½; million bushels, or 9 percent, less than the high record
receipts in July last year. Receipts of sheep and lambs were the
largest for July of record. Receipts of cattle exceeded those for
June but were 12 percent below those for July last year. Fewer
hogs were marketed than in either the preceding month or the years' records. The July slaughter of cattle was the largest
same month last year.
.for any month of the year, although it showed a small decrease
While some manufacturing plants continued to operate with from a year ago. The number of hogs slaughtered was the smallreduced working forces, or on part-time schedules, industry as est monthly total of the year and 18 percent smaller than in
a whole made a favorable showing for thequiet mid-summer July 1 9 2 9·
month. Flour mills were operated in July at a higher rate of
The petroleum industry further curtailed production of crude
full-time capacity and produced more flour than in any previous oil in the effort to bring the output within range of market reJuly. The number of sheep and lambs dressed at meat packing quirements. The soft coal output increased but was not up to a
plants had not been exceeded in any previous July on twelve year ago. Production and shipments of zinc and lead ores was
R
This Copy Released For Publication In Morning Newspaper August 29
2
THE MONTHLY REVIEW
at the lowest point of the year. Cement production, as in the
earlier months of the year, was larger than a year ago.
Building contracts awarded in this District during July showed
a sharp decline from June and were below those for July last
year, but awards for the first seven months of 1930 still were
about 48 million dollars ahead of the like period in 1929. The
value of building permits in cities increased 16 percent over June
but was 5 percent less than a year ago.
Financial
A slow demand for commercial credit, accompanied by a reduction in the amount of collateral loans outstanding and a rise in
the volume of net demand deposits, has in recent weeks tended
to further ease money rates in the Tenth District. In recognition of the unfavorable position of the agricultural and livestock
interests, the result of prevailing low prices and hot and
dry weather, the Federal Reserve Bank of Kansas City on August
15 reduced its discount rate from 4 to 3.½ percent on all classes
of maturities of rediscount and member bank notes. Rates
charged customers by member banks at the principal financial
centers in this District on August 15 changed by slightly from
those of a month ago. The rate on prime commercial paper
was 4½ to 5 percent, and on commercial paper secured by warehouse receipts from 4½ to 6 percent. On loans to other banks
and loans secured by stocks and bonds rates were 5 to 6 percent.
On cattle loans the rate was 5.½ to 7 percent.
MEMBER BANK CREDIT: During the four weeks ended
August 13 the total amount of loans of fifty-six reporting member banks located at the leading financial centers of this District
declined by $9,987,000 to the lowest level since July 1928. The
bulk of the decline, $7,018,000, was in security loans, while
commercial or all other loans decreased $2,969,000. Total
investments of these banks showed no important change during
the four weeks. Their holdings of Government securities decreased '$2,144,000. Their holdings of other stocks, bonds and
securities increased $1,930,000, and at 1,129,222,000, (with the
exception of 1,130,095,000 on July 6), were the highest since
July J; 1928. Net demand deposits rose $6,887,000 during the
four weeks to $506,001,000, the highest since September 18,1929.
Time deposits, while showing a decline of $4,223,000 from the
total reported four weeks earlier, have been for the past ten
weeks ' at the highest level of record for the reporting member
banks. The principal resource and liability items of the fiftysix reporting member banks as of August 13 are here shown in
comparison with those reported four weeks earlier and one year
ago:
Loans and investments- totaL_.......
Loans and discounts-total................
Secured by stocks & bonds............
All other loans and discounts........
Tnvestments-tota~-- U.S. Securities .......... _ _ _ _
Other bonds, stocks and securities
Reserve with F. R. Ban,._____
Net demand deposits.· - · · - - - Time deposit~- - - - - - Government deposits ........ _ _ _
Aug. 13, 1930 July 16, 1930 Aug. 14, 1929
'1,650,609,000 $66o,810,ooo '1,707,277,000
430,370,000 440,357,000 475,114,000
133,114,000 140,132,000 137,618,000
297,256,000 300,225,000 337,496,000
220,239,000 220,453,000 232,163,000
91,017,000
93,161,000 110,015,000
129,222,000 127,292,000 122,148,000
56,698,000
57,701,000
57,340,000
5o6,001,ooo 499,114,000 525,261,000
188,612,000 192,835,000 182,312,000
578,000
1,694,000
873,000
RESERVE BA K OPERATIO S: Borrowings of member
banks at the Federal Reserve Bank of Kansas City on August
13, in the amount outstanding, were $970,636 less than four
weeks earlier and the lowest for any weekly report date since
February 21, 1928. Holdings of purchased bills increased
'$2,353,255 during the four weeks to the highest amount reported
since May 21. The amount of United States securities held by
this Bank on August 13 was the same as reported four weeks
earlier and at the highest level since April II, 1928. There was
little change in Federal Reserve note circulation, or in total
deposits, during the four-week period. The ratio of total reserves
to deposit and Federal Reserve note liabilities combined stood
at 73.8 percent on August 13, against 73.8 percent on July 16,
and 82.5 percent on August 14, 1929. Weekly condition statements of the Federal Reserve Bank of Kansas City and branches
as of the three dates indicate the changes in the amount of credit
outstanding and other related items:
Aug. 13, 1930 July 16, 1930 Aug. 14, 1929
Gold reserves ........................................ 'f,112,349,536 'f,112,749,777 'f,137,795,7o4
Reserves other than gold....................
6,007,058
5,99 1,624
4,49 2,749
142,288,453
Total reserves·--··································· 118,356,594 118,741,401
Bills discounted....................................
9,114,797
10,085,433
28,837,066
Bills purchased·--···--····························
8,254,960
5,9° 1,7°5
996,5 13
U. S. Securities....................................
28,736,000
28,736,000
974,500
Total bills and securities....................
46,105,757
44,723,138
32,308,079
Total resources.................................... 208,365,595
210,924,858 228,191,308
F. R. Notes in circulation..................
69,445,930
69,578,630
77,369,830
Total deposits......................................
90,899,610
91, 295,4 14
94,995,994
Payments by Check
Debits to individual accounts at banks in twenty-nine cities
of this District ran at a daily average of $60,877,043 for the
twenty-three banking days in the four weeks ending July 30.
This compares with a daily average of $58,921,021 for the twentyfour banking days in the four weeks ending July 2, and with a
daily average of $74,963,739 for the twenty-three banking days
in the four weeks ending July 3, last year. The cities of Albuquerque, Colorado Springs, Kansas City> Kans., Lincoln and
Wichita reported their debits or payments by check exceeded the
amounts -debite{)n the like period last year. The reports in
detail:
Albuquerque, . M ........................
Atchison, Kans................................
Bartlesville, Okla·-···························
Casper, Wyo·--·································
Cheyenne, Wyo................................
Colorado Springs, Colo....................
Denver, Colo.. ..................................
Enid, Okla........................................
Fremont, Nebr..................................
Grand Junction, Colo......................
Guthrie, Okla....................................
Hutchinson, Kans............................
Independence, Kans.... ....................
Joplin, Mo........................................
Kansas City, Kans...... ....................
Kansas City, Mo........· - - Lawrence, Kans................................
Lincoln, Nebr·--·······························
Muskogee, Okla................................
Oklahoma City, Okla......................
Okmulgee, Okla................................
Omaha, Nebr....................................
Pittsburg, Kans................................
Pueblo, Colo·-···································
Salina, Kans·-···································
St. Joseph, Mo·--··········· ··················
Topeka, Kans·--·······························
Tulsa, Okla·-·····································
Wichita, Kans..................................
FouR WEEKS ENDING
Percent
Change
July 30, 1930
July 31, 1929
$
u,558,000 'f,
10,931,000
,.5·7
6,319,000
6,658,000 - 5.4
21,988,000 - 0,1
21,958,000
7,684,000 - 1 3.9
6,619,000
5,494,000
6,529,000 - 1 5.9
16,610,000
6.1
17,631,000
141,569,000
174,222,000 -18.7
34,616,000
34,695,ooo - 0.2
3,296,000
3,977,000 -17.1
2,953,000 -17.0
2,452,000
2,928,000
3, 133,000 - 6.6
41,469,000
69,614,000 -40.4
10,303,000
12,833,000 - 1 9.7
9,243,000
15,015,000 -38.4
21,677,000
20,383,000
6.3
406,670,000
537,238,000 -24.3
4,802,000
5,204,000 - 7.7
29,101,000
5.7
30,764,000
9,556,000
n,536,000 - 17.2
125,116,000 -10.1
n2,512,ooo
4,409,000
7,015,000 -37.l
226,677,000 -16.7
188,830,000
4,937,000
5,225,000 - 5.5
18,306,000 - 1 5.5
l 5,470,000
20,912,000 -14.1
17,964,000
6o,366,ooo - 31.3
41 ,482,000
20,109,000 - 9.4
18,224,000
167,386,000 -22.0
130,508,000
76,912,000
73,55°,000
4.6
Total 29 cities, 4 wks .................... 'f, 1,400,172,000
Total 29 cities 30 wks .................. 'f,10,291,103,000
$ 1,714,966,000 - 18.4
'f,u,120,36o,ooo - 7.5
RESERVE BANK CLEARINGS: The money volume of
checks collected for banks through the Federal Reserve Bank of
Kansas City and branches during the four weeks ending July 30
was a fractional part of I percent higher than in the preceding
four weeks, but I 5.6 percent lower than in the corresponding
THE MONTHLY REVIEW
3
RETAIL TRADE AT 38 DEPARTME T STORES I r THE TENTH FEDERAL RESERVE DISTRICT
SALES
STOCKS (RETAIL)
STOCK TURNOVER
ACCOUNTS RECEIVABLE
COLLECTIONS
Stores July 1930 7 Months 1930
July 31, 1930
7 Months
July
July 31, 1930
July 1930
Report- compared to compared to
compared to
compared to
Compared to
ing July 1929 7 Months 192; June 30, 1930 July 31, 1929 1930 1929 1930 1929 June 30, 1930 July 31, 1929 June 1930 July 1929
Kansas City.. ...... 4
.t6
-12.6
-13.0
- 7.8
2.2
- 7.3
.17
- 5.5
- I.I
1.45 1.51
4.7
Denver.......... ...... . 5
.20
.18
- 2.6
1.40 I.35
- 8.2
- I.8
- 4·4
- 3•4
-II.0
1.5
- 2.2
Oklahoma City ...... 3
.22
.20
6.6
2.1
- 6.6
0.7
1.84 1.8 5
7.8
- 4.8
3.3
- 9.7
Omaha ................. 3
-16.6
o.6
6.2
- 2.0
3.8
- 9.4
Lincoln_ .............. . 2
--22.6
.21
.18
- 14.I
-16.'.l
- 7.1
- 3.8
- 5.7
- 4.5
I.54 1.36
Topeka.. _ .............. 3
.18
.18
- 4.6
- 3.6
- 2.4
Even
- 6.7
1.19 1.16
- 9.7
4.5
Tulsa.................. .. . 4
0.I
-II.I
.22
- 4.2
2.09 2.07
10.4
.25
- 4.4
-5-7
- 6.3
4.9
Wichita._.............. . 4
-16.8
.18
-10.7
- 6.o
,I 5
-17.2
-I4.5
8.4
- 2.8
- 5.3
Other Cities ...... .. . IO
- 6.8
-0.4
- 3.0
- 6.7
.14
1.14 1.08
- 8.5
.13
- 4.8
- 5.0
Even
Total...................... 38
- 6.3
- 3.9
- 5.6
- 9.1
.19
.19
1.53 1.48
- 9.4
1.5
NOTE: Percenta6e of collections in July on accounts June 30, all stores reporting 38.7. Collections same month last year 40.2.
four weeks last year. The number of items handled by this Bank
in the four weeks ending July 30 was smaller than in either the
preceding period or the like period last year. The figures follow:
Items
Four weeks ending July 30, 1930................... . 5,338,55 2
Four weeks ending July 2, 1930.. _.................. 5,496,157
Four weeks ending July 31, 1929 ................... . 5,434,266
Thirty weeks ending July 30, 1930_ _············· 4o,738,t47
Thirty weeks ending July 31, 1929 ............... . 40,768,973
Amount
$ 824,360,150
823,029,869
976,78 1,371
6,158,479,372
6,711,533,106
Savings in Banks
Deposits to savings accounts in forty-nine banks in cities of
this District on August 1 aggregated $120,205,997, as reported
to the Federal Reserve Bank of Kansas City. This total shows
a gain of '$775,189 over the $119,430,808 reported for July 1,
but a loss of $790,534 from the '$120,996,531 reported for August
1, 1929. The number of savings accounts in forty-seven of the
banks on August 1 was 416,819, an increase of 5,855 for the month
and an increase of 24,087 for the year.
Failures
According to the monthly report of R. G. Dun & Company,
business failures in this District in July were fewer and the amount
of liabilities slightly larger than in either June of this year or
July of last year. Failures in this District and in the U. S.
follow:
TENTH DISTRICT
Failures Liabilities
July 1930......................................
124 $1,893,300
June 1930...................................... 130
1,573,613
July 1929...................................... 130
1,826,519
UNITED STATES
Failures Liabilities
2,028 $39,826,417
2,026
63,130,762
1,752
32,425,519
Collections
Collections by department stores during July showed very
little change from June but were not quite up to the record of
a year ago, the July collections figure of 38.7 percent comparing
with 40.2 percent for July last year. Other retail firms indicated
their July collections were not up to this time last year, particularly on installment accounts. Distributors of implements and
farm machinery and in some other important lines, reported
collections slow and showing but little improvement.
-
0.7
Retail Trade
Total July sales at department stores in this District were
15.8 percent smaller than in June and 6.3 percent smaller than
in July last year. Sales at ten stores were larger and at twentyeight stores smaller than a year ago. Oklahoma City and Tulsa
reporting stores showed larger sales than a year ago. Total
sales of reporting department stores for the first seven months
of 1930 were 3.9 percent smaller than for the corresponding period
in 1929. Nine of the thirty-eight stores did a larger business
than in the like period last year.
July sales at retail stores: handling men's and women's apparel
were in about the same volume as a year ago, while sales of shoes
and furniture:showed decreases as compared with those for July
last year.
Stocks on hand at department stores at the close of July were
5.6 percent smaller than one month earlier and 9.1 percent smaller
than a year ago. Stocks of men's and women's apparel and
furniture averaged slightly higher than a year ago, while stocks
of shoes were lower than a year ago.
Wholesale Trade
Wholesale trade during July, taking the combined dollar
volume of sales of all firms reporting to this Bank, was about 16
percent below July last year. The July reports by lines revealed
that sales of drygoods and drugs were larger than in June, while
sales of groceries, hardware and furniture were smaller than
reported for that month.
In comparison with a year ago
all lines showed decreases in their sales volume.
Stocks of wholesale grocery firms on July 31 averaged higher
than on June 30, but were lower than on July 31, 1929. Stocks of
drygoods, hardware, furniture and drugs on July 31 were smaller
than either a month ago or a year ago.
Building
Midsummer witnessed a seasonal decline in the awarding of
contracts for building and engineering construction in this District. Statistics reported by the F. W. Dodge Corporation show
the value of building contracts awarded in July was $19,180,779,
which compares with awards of $63,727,271 in June, and awards
WHOLESALE TRADE IN THE TENTH FEDERAL RESERVE DISTRICT
SALES
OUTSTANDINGS
COLLECTIONS
Reporting July 1930 compared with July 31, 1930 compared with July 1930 compared with
Stores June 1930 July 1929
June 30, 1930 July 31, 1929 June 1930 July 1929
Dry Goods ..........................................
7
3.3
--23.5
- 2.9
- 7.9
9.4
- 15.4
6
- 0.3
- 6.6
0.2
- 6.1
- 3.1
- 3.5
Groceries·---·······································
Hardware........................................... .
9
- 0.5
-18.6
- 1.0
- 3.J
- O.I
-12 .I
Furniture __ ........................................
6
-26.2
-35.4
-14.2
- 9-9
- 9.3
--20.6
6
7.2
- 9.4
- 3.1
-12.9
7-5
- 3.2
Drugs.·-··············································
STOC~S
July 31, 1930 compared with
June 30, 1930 July JI, 1929
2 5·9
-23. 2
- 9.1
-10.5
-5-4
-9.8
5.9
- 7.2
- o.6
-II.I
THE MONTHLY REVIEW
4
BUILDING PERMITS lN TWENTY CITIES
EsTIMATED CosT
July 1930
July 1929
Albuquerque, N. M ___________ ________ __________ ________ __________ _ 'I,
84,248
'I, 142,300
Casper, Wyo __________________________________________________________ _
20,050
66,500
Cheyenne, Wyo __________________________________________ _____________ _
191,983
78,880
Colorado Springs, Colo ___________________________________________ _
28,570
29,080
Denver, Colo _________________________ __________________________________ _
1,251,550
913,600
Hutchinson, Kans __________________ _________________________________ _
58,537
16,644
96,218
57,599
Joplin, Mo_····---··--·-----------·-------·-·-·-------·------------------96,795
180,380
Kansas City, Kans ______ ·----·-------------------------------------2,331,350
621,450
Kansas City, Mo... --------------------------------------------------54,565
219,803
Li ncoln, Nebr·-----··--------------------------------------------------Muskogee, Okla _____ . _________________________________________________ _
176,625
23,645
1,588,340
2,514,175
Oklahoma City, Okla·------·-----------------------·-------------197,788
585,335
Omaha, Nebr_·---·---·---·-----------------· -----·---------------------pueblo, Colo,_ _ __________________________________________ _
53,730
218,239
215,36o
72,II0
Salina, Kans-·--··-------------------------------------------------------Shawnee, Okla _________________________________________________________ _
18,630
134,618
91,723
250,860
St. Joseph, M~------------------------------------·-------------------108,220
120,II0
Topeka, Kans·----------·-···------------------------------·----------598,698
1,120,045
Tulsa, Okla__·---·-··------------------- -----·-----------·---------------·
404,722
710,230
Wichita, Kans .....·---------------------------·-----------------------Total 20 cities, July... _____________________________________________ $ 7,667,702
Total 20 cities, 7 months________________________________________ 50,998,644
1, 8,075,6o3
62,156,805
of $24,659,361 in July last year. The July awards brought the
total for seven months of 1930 for this District to $189,845,568,
which is $47,815,879 _above the awards of $142,029,689 for the
first seven months of 1929.
The estimated cost of new building projects in twenty cities
of the Tenth District, for which permits were issued in July,
totaled '$7,667,702, as reported to this Federal Reserve Bank by
their engineering departments. This figure indicates an increase
of '$1,076,674 over June, but a decrease of $407,901 from July
1929. Seven cities reported increases and thirteen decreases in
the estimated cost of July buildings compared with the same
month last year. The record for the first seven months of 1930
shows the estimated cost of building permits in the reporting cities
to have been $50,998,644, which is $II,I 58,161 below the total
for the like period in 1929.
Lumber
Sales of lumber at 177 retail yards in the Tenth District
totaled 4,407,000 feet for the month of July, compared with
3,803,000 feet in June and 5,889,000 feet in July last year. July
sales of all materials at the reporting yards were also larger than
in June, but smaller than a year ago. Stocks of lumber at the
close of July were smaller than a month earlier or a year ago.
July business at these yards is compared with that for the two
former periods, in percentages of increase or decrease, in the
following:
July 1930 Compared to
June 1930 July 1929
Sales of lumber, board feet_···--·--··---· -··----·--------··----------·----15.9
-25.2
Sales of all materials, dollars __ ·····-----·-------------------·-------------·
7.2
-25.1
Stocks of lumber, board feet ... -------------------------------·--------·--· - 1.2
7.8
Outstandings, end of month_·-- -------------------------------·-----·-----· - 5.4
-12.8
Collections during month.._·-------·---------------·-------------------------·
8.o
-23.3
Production of lumber in the United States, at both softwoods
and hardwoods mills, continued through July at the lowest
level in recent years, according to reports to the ational Lumber
Manufacturers Association. Production of identical mills for
thirty-one weeks ending August 2 totaled 9,422,445,000 feet,
which was 15 percent below the II ,056,388,000 feet produced
in the like period in 1929. Shipments of 8,915,234,000 feet
during this period showed a decline of 20 percent from the previous year while orders received, totaling 8,569,019,000 feet,
were 23 percent below a year ago.
Petroleum
The production of crude petroluem in this District declined
during July to a daily average of 805,500 barrels, 51,500 barrels
below the daily average for June and 130,400 barrels below the
daily average for July last year. Due to curtailment by producers the July daily average for Oklahoma and Kansas showed
material declines both as compared with the preceding month
and the corresponding month last year. Wyoming reported no
change from June but a small reduction from July last year. New
Mexico reported a sizeable increase and Colorado a small decrease as compared with the daily average for July 1929. The
daily average and gross production in each of the five states for
July, with comparisons, is shown in the following:
•
DAILY AVERAGE PRODUCTION
I
Oklahoma_·--··--···---·----------------------------Kansas ____ .... ____ ___________________________________ _
Wyoming ____ _______________________________________ _
Colorado. _____________________________________________
New Mexico ___ __ _____ ___ ____________ ________ _____ _
*July 1930
Barrels
594,700
121,600
47,000
4,600
37,600
July 1929
Barrels
731,700
139,600
54,200
6,900
June 1930
Barrels
646,000
135,000
47,000
4,000
25,000
3,5 00
857,000
Total_·-·--------------------------···-------------··-·
805,500
GROSS PRODUCTION
*July 1930
June 1930
Barrels
Barrels
Oklahoma .. ________ __________ ________________________ 18,437,000
19,382,000
Kansas ______________________________________________ _ 3,770,000
4,064,000
1,450,000
1,421,000
142,000
131,000
New Mexico _______________________________________ _ 1,167,000
733,000
935,9°0
July 1929
Barrels
22,682,000
4,3 2 9,000
1,681,000
215,000
107,000
fJ~~~!::::::::_·_-_::::::::::::::::::::::::::::::::::
TotaL .. ____________ ______________ ______________________ 24,966,000
*Estimated, American Petroleum Institute.
25,731 ,ooo
29,014,000
The month of July witnessed a considerable decline in the
number of wells completed, although the number of barrels
daily new production from the fewer wells completed showed a
remarkable increase over the preceding month and a year ago.
New development work, indicated by the number of wells drilling,
showed but little change. The July summary of field operations:
Wells
Barrels Daily Dry Gas Rigs-Wells
Completed New Production Wells Wells Drilling
Oklahoma_····--··-··------------·-·281
474,705
81
37
992
Kansas·--··-------- -- ---------------·70
14,938
32
278
Wyoming ... ----- -------------------15
1,853
6
o
141
Colorado_.____________________________
6
230
~3
I
99
New Mexico·-------··-·----------·22
122,695
~I
1II
July 1930.. ·- ----··-----------------June 1930_···-------·---------------July 1929....... _______________ ___ ___
7 Mos. 1930·--·----------------·--7 Mos. 1929-----------------··--·--
394
524
488
2,938
2,853
614,421
451,523
153,195
3,254,079
739,276
123
145
182
921
1,073
40
52
51
291
244
1,621
1,674
1,684
Further curtailment in petroleum refinery operations in Oklahoma and Kansas is indicated by the report which follows:
Aug. I
1930
Refineries in operatio11, number
57
Daily runs crude oil to stills, barrels_·-·--·--------- 290,450
July I
1930
56
300,600
Aug. I
1929
59
303,150
Cement
Portland cement mills in the Tenth District produced 2,000
barrels more cement in July than in June and 143,000 barrels
more than in July last year, as reported by the United States
Bureau of Mines, Department of Commerce. Shipments of
cement increased during the month by I 2,000 barrels over June
and 31,000 barrels over July last year. Stocks of finished
cement on hand at the close of July were 88,ooo barrels less than
one month earlier and 401 ,ooo barrels more than a year ago.
The number of barrels produced and shipped during July, and
•
THE MONTHLY REVIEW
FARM CROPS IN THE TENTH DISTRICT AND THE UNITED STATES
Estimated production on August l compared with that for July 1 and the
yield for 19:29. Compiled from the August report of the United States Department
of Agriculture. (In thousands of units, ooo omitted)
TENTH DISTRICT
UNITED STATES
Est.
Est. Prod'n.
Est. Estimate Prod'n.
Aug. 1 July 1, In 19:29 Aug. 1, July 1, In 19:29
1930
1930
1930
1930
Corn, bushels ............35:2,065 494,304 445,415 :2,:2u,8:23 2,802,442 2,614,307
Winter wheat, bu ......:279,:277 :266,:240 :255,306 597,39:2 557,719
577,784
Spring wheat, bu ...... 10,345 10,69:2 12,187 :2:23,:2:21 :249,546
:2:28,006
Oats, bushels ............ 165,9:26 164,817 15:2,447 1,316,369 1,329,407 1,233,574
White potatoes, bu .. 33,4:21 34,130 31,933 37:2,557 398,419
359,796
Tobacco, lbs.............. :2,8:2:2
3,310
2,714 1,474,758 1,597,670 *1,519,081
Cotton, bales............ 1,043
**
1,169
14,36z
**
14,8:28
Tame hay, tons ........ u,865 1:2,34:2 12,348
83,460
85,43I * 101,786
*Revised. **No estimate on cotton production for July.
stocks on hand at the close of the month, is shown in the following table, with comparisons:
TENTH DISTRICT
July 1930
Produced·-··········································· 1,6:24,000
Shipped................................................ 1,712,000
Stocks, end of month.. ...................... 2,199,000
U ITED STATES
Produced.-........................................... l 7,080,000
Shipped................................................ 20,147,000
Stocks, end of month............... ......... :26,:298,000
June 1930
1,622,000
1,700,000
:2,:287,000
July 19:29
1,481,000
1,681,000
1,798,000
17, 293,000
18,781,000
29,364,000
17,315,000
20,319,000
24,525,000
Production of clinker (unground cement) in this District
during July totaled 1,571,000 barrels compared with
1,324,000 barrels in July last year. Stocks at the end of July
were 582,000 barrels against 1,083,000 barrels on hand a year ago.
Bituminous Coal
Activity at the
ing July and the
than in June, but
by 16.9 percent.
soft coal mines in this District increased durtonnage produced was larger by 6.9 percent
as compared with July last year it was smaller
Production for the month with comparisons:
*July 1930
Tons
437,000
Colorado..--··············································
Kansas ......................................................
142,000
Missouri.......................... ..........................
:247,000
New Mexico ..............................................
1:23,000
Oklahoma ............................. ................... .
127,000
Wyoming..................................... ............ .
337,000
Total..........................................................
*Estimated.
1,413,000
June 1930
July 1929
Tons
392,000
II 5,000
2:25,000
Tons
496,000
177,000
230,000
140,000
210,000
125,000
325,000
200,000
387,000
1,322,000
1,700,000
Total soft coal production in the United States during the
present calendar year to August 2, (approximately 182 working
days), amounted to 267,418,000 net tons, according to the United
States Bureau of Mines. This figure compares with 300,036,000
net tons produced during the corresponding period in 1929.
Zinc and Lead
Activity at the zinc and lead mines in the Tristate District
declined during July and shipments of concentrates were at the
low point of the year. Late reports indicated that some advances
in prices of zinc and lead ores for the week ending August 11
brought more liberal sales, although shipments still were considerably below those of a year ago. Shipments during the five
weeks ending August 4 in both tonnage and value, follow:
ZINC ORE
Tons
Value
Oklahoma.......................................... :21,170 '$ 629,898
Kansas.......... ..................... .............. 8,715
259,470
Missouri........ ....................................
590
17,687
S Wks. ending Aug. :2, 1930·-······· 30,475
S Wks. ending June 28, 1930·-····· 52,258
S Wks. ending Aug. 3, 1929·-······· 6o,452
'$
LEAD ORE
Tons
Value
2,533 '$ 151,980
765
45,900
120
7,:200
907,055
'$ 205,080
1,6oo,272
2,659,888
417,776
625,592
s
Farm Crops in the Tenth District
CORN: With an average condition of 53.4 percent of normal
on August 1, the corn crop in the Tenth District promised a
yield of 352,065,000 bushels. This total was 142,239,000 bushels
below the 494,304,000 bushels forecast as of the July 1 condition,
and 93,350,000 bushels below the 445,415,000 bushels harvested
last year. This August I estimate, made by the Department
of Agriculture and State Boards of Agriculture, did not reflect
the full effect of the summer drought in this regional District,
as considerable further damage resulted during the early part
of August before the situation was to an extent relieved by lower
temperatures and scattered rains. The State reports disclosed
few sections of this District escaped the blight of the drought.
In Nebraska, the leading producing state in this District,
the corn prospect on August I was for a yield of 193,935,000
bushels, 46,175,000 below the July estimate and 43,089,000
bushels below 1929 production. But the situation in that state
was far from gloomy, according to a report on August 11, which
said: "The fact that western Nebraska has good prospects on
nearly one-third of the corn acreage and the east central portion
has a fair prospect on another third of the state's acreage, combined with the fact that the acreage is nearly a record, accounts
for a larger crop than some expected."
Missouri's corn crop, after one of the driest July's in the history
of that state, declined during the month and the condition on
August 1 was down to 50 percent of normal, and indicated a
yield of 109,557,000 bushels compared to 126,524,000 bushels
produced in 1929.
The Kansas report said: "The heat and drought of July cost
Kansas at the rate of about 1,750,000 bushels of corn per day.
A corn outlook that was rated at 77 percent of normal on July 1
slipped gradually but certainly to a rating of 45 percent on August
1 and had declined to 30 percent by ·August 7. This condition
allows a potential forecast of 76,164,000 bushels production this
year, an
,, average possible yield of 12 bushels per acre on 6,347,000
acres.
Deterioration of corn in Oklahoma during July resulted in a
condition of 43 percent of normal on August 1 with a promise of
35,000,000 bushels, which is 32,000,000 bushels less than forecast one month earlier.
Colorado corn prospects improved during July in sharp contrast with other sections of this District and of the United
States. The estimate was for 20,490,000 bushels in that state,
an increase of 2,732,000 bushels over the July forecast.
New Mexico and Wyoming, with relatively small acreages of
corn, reported slight changes in their production figures from
those reported a month earlier.
WHEAT: The harvest of winter wheat was nearly completed
by August I and yields in many sections turned out better than
expected a month earlier. Total production in this District was
estimated at 279,277,000 bushels, an increase of 13,037,000
bushels over July 1, and 23,971,000 bushels more than the 1929
crop. Kansas reported an increase of 8,214,000 bushels over the
July estimate to an August 1 total of 154,902,000 bushels, or
17,190,000 bushels above 1929 production. Nebraska's estimate
was raised 2,495,000 bushels to a total of 68,160,000 bushels
which was that state's second largest winter wheat crop. Oklahoma's reported yield of 33,696,000 bushels compares with last
year's production of 44,478,000 bushels. Missouri, with
19,740,000 bushels harvested, had a larger crop than last year.
Colorado reported a gain of 2,294,000 bushels for the month,
the August total of 16,632,000 bushels showed an increase of
4,638,000 over the crop of 1929. Wyoming reported an increase
6
THE MONTHLY REVIEW
in winter wheat production and New Mexico little change as
compared with the harvested crop of 1929.
The spring wheat crop in Colorado was too nearly matured
to be benefited by July rains in that state, and the crop was damaged slightly by dry weather in Wyoming. Total production
for this District as of August 1 was estimated at 10,345,000
bushels, as compared with a July 1 promise of 10,692,000 bushels
and last year's yield of 12,187,000 bushels.
OATS, BARLEY A D RYE: The oats crop in Kansas is
one of the finest in history, official reports from that state said.
An average yield of 31 bushels per acre is recorded which is
the best since 1920 and has only been exceeded five times in the
last thirty-five years. Total oats production in that state was
estimated at 42,687,000 bushels, compared with 28,249,000
bushels in: 1929. Missouri reported a yield of 46,306,000 bushels
against 33,770,000 bushels last year, Nebraska 80,960,000 bushels
against 86,304,000, Oklahoma 23,940,000 bushels against
20,592,000 bushels, Colorado 5,562,000 bushels against 6,572,000
bushels, and Wyoming 4,000,000 bushels against 4,205,000
bushels. Figures for the Tenth District area indicated a yield
of 165,926,000 bushels of oats as compared with 164,817,000
bushels a month earlier and 152,447,000 bushels in 1929.
The barley yield in this District, indicated by the August
1 condition, totaled 48,270,000 bushels, a decrease of 1,283,000
bushels from the July l estimate, and 1,703,000 bushels below
production in 1929. This year's crop of rye was estimated at
6,943,000 bushels as compared with 5,391,000 bushels last year.
POTATOES suffered in yield during July from heat-rot and
sun-scald, the Kansas report said in announcing an estimated
yield of 125 bushels per acre for a crop of 5,875,000 bushels as
compared with 4,375,000 bushels last year. Shortage of irrigation water in Northern Colorado and in the San Luis
Valley early in July caused a sharp drop in the condition
of potatoes in that state, though recent rains improved the situation. The Colorado crop is estimated at n,610,000 bushels,
710,000 bushels below last year's production. Nebraska, with
a promise of 7,912,000 bushels, also has a smaller potato crop
than last year, by 1,012,000 bushels, and Wyoming's estimated
crop of 2,080,000 bushels is 10,000 bushels below that oflast year.
With small increases in Missouri, Oklahoma and New Mexico,
however, the Tenth District crop as a whole is estimated at
33,421,000 bushels, or 1,488,000 bushels above 1929 production.
TAME HAY crops, particularly late maturing millet, sudan,
sweet clover and the third cutting of alfalfa, all suffered from the
July heat wave in Kansas and, to a considerable extent elsewhere in sections affected by hot and dry weather. While
ebraska reported a moderate increase over last year in tame
hay production, the s~ates of Colorado, Kansas, New Mexico,
Oklahoma and Wyoming each reported a small decrease, and
Missouri a large decrease. The figures compiled for the Tenth
District place this year's tame hay crop at n,865,000 tons, a
decline of 477,000 tons from the July estimate, and 483 ooo tons
below last year's crop.
'
OTHER FALL CROPS: Grain sorghums suffered from the
heat in July, as did corn, and there was a marked decline in the
condition between July land August I. Production in Colorado,
Kansas and Oklahoma was forecast at 35,812,000 bushels against
42,376,000 bushels in 1929. The sugar beet crop in Colorado
Wyoming and Nebraska was estimated at 4,225,000 tons a~
compared with the 1929 production of 4,153,000 tons. The broom
corn crop in this District was estimated at 50,390 tons on its
condition of August 1, which is 9,990 tons above the previous
year's crop of 40,400 tons.
COTTON: A United States cotton crop of 14,36:2,000 bales
of 500 pounds: gross weight was indicated for 1930 by an August
1 condition of 62.6 percent, according to the crop reporting
board of the United States Department of Agriculture. Last
year the August 1 condition was reported as 69.6 percent of
normal and production for the year, as shown by the final report
on ginnings, was 14,828,000 bales. The report in detail, presented in the table which follows, shows the August 1 condition
and estimated production for the eight cotton producing states
lying west of the Mississippi River and also the total for the
United States:
PRODUCTION
CONDITION
500-lb. Bales
Percent of Normal
Estimated
August 1 August 1 Ginnings,
1929
1930
1929 Aug. 1,1930
Texas............................................. . 61
64
4,496,000
3,940,000
Oklahoma...................................... 6o
1,072,000
1,143,000
72
1,1o6,ooo
1,435,000
Arkansas................· - - - -· 46
73
632,000
809,000
69
Louisian -···································· 54
I 53,000
220,000
Missouri.... - .................................. 64
81
162,000
l 53,000
86
Arizona __ ·-··································· 92
New Mexico ................................. . 89
86
97,000
90,ooo
224,000
[26o,ooo
86
California.·-·································· 92
Total 8 states................................ 58.9
Tot_al United States.................... 62.2
7,942,000
14,362,000
8,050,000
14,828,000
The report said that during July unusually hot, dry weather
prevailed in most of the belt from Alabama west, amounting to
severe drought in many sections. Curtailment of the crop
from this cause was particularly severe in Arkansas and Louisiana
where the forecasts are approximately 23 percent below last
year's production. Mississippi, Oklahoma, Alabama, Tennessee
and Missouri are other States affected by drought with prospects below last year. The forecast in Texas is approximately
550,000 bales above the short crop of 1929. The South Atlantic
States have had ample rainfall and prospective production is
larger than the crop produced last year. Weevils are reported
less from Alabama west to Oklahoma and prospective dam age
in this area is much below last year and is similar to 1924.
Grain Marketing
Receipts of new wheat at primary markets in the Tenth District since the beginning of the harvest season have been somewhat below the high record receipts at the same markets during
the corresponding period last year, notwithstanding the Government's preliminary estimates indicated Tenth District farmers
thi~ year produced 4 percent more winter wheat than in 1929.
This apparent slowing down in the marketing of wheat is generally attributed to a large increase in storage bins on farms and
country elevators which have enabled farmers to hold much of
their wheat rather than sell it at the low prices prevailing.
The dry weather during July and threatened shortage of feed
crops caused farmers generally to hold their stocks of old corn
with the result that July receipts of corn at the five market~
were the smallest for that month since 1927. Receipts of oats,
rye, barley and kafir were considerably smaller than a year ago.
Receipts of grain at the five markets are shown in the following
table for the month of July with comparisons:
Wheat
Corn
Oats
Rye
Barley Kafir
Bushels Bushels Bushels Bushels Bushels Bushels
3,000
10,000
2,6oo
Hutchinson·-············· 14,370,750
17,500
Kansas City.............. 33,054,740 1,702,500 200,000 16,500 225,600 68,200
Omaha._ ..................... 14,296,000 1,233,400 256,000 64,400 49,6oo
St. Joseph _ _ _ 5,008,500 327,000 146,000 3,000 15,750
1,500
Wichita _____ 10,395,000
37,700
6,000 1,300 36,400
5,200
July 1930_··-······-•-77,124,990 3,318,100 6n,ooo 85,200 337,350 77,500
June 1930.·-·--·---13,l08,300 5,166,950 1,345,000 27,300 251,300 272.,000
July 19'l9········--·-84,5oo,770 3,789,45o 994,500 125,300 955,850 22.9,500
7
THE MoNTHL v REVIEW
Market prices of wheat continued through July at the lowest
level in recent years. At the close of the month o. 1 hard and
dark wheat was quoted at 76½c to 90c per bushel at Kansas
City, which was 2c to 4c under the prevailing price at the close
of June. Car lot prices of o. 2 mixed corn at Kansas City on
the last day of July ranged from 82½c to 83½c per bushel,
which was 1IC higher than the cash price paid one month earlier.
The market prices of oats fluctuated narrowly during the month
but at the close o. 2 white oats sold at 34c to 35c per bushel,
about 15c below the price paid on July 31, 1929.
•
Flour Production
Mills in the Tenth District which report their weekly output
to the Northwestern Miller were operated during July at 68.6
percent of their full time capacity and produced 2,248,840 barrels
of flour. This was the highest percentage of full time operation
and the largest number of barrels produced in any July of record.
The month's production shows an increase of 215,213 barrels
over June and an increase of 22,653 barrels over July last year.
The reports in detail for the various milling centers of the District
follow:
July 1930
Barrels
132,817
638,621
11 3,3 2 5
183,ao6
87,770
180,394
912,707
June 1930
Barrels
124,o68
623,007
103,o61
153,100
9 1 .439
135,096
803,856
July 1929
Barrels
Total. .....................·-·······- - -- - 2,248,840
2,033,627
2,216,187
Atchison_ ..................................................
Kansas City ............................................. .
OmahL_ .................................................. .
Salina.---···················································
St. Joseph ............... - ................................ .
Wichita- ................................................... .
Outside...... ................................................
115,820
667,693
,90,762
159,281
142,483
185,400
854,748
While the July increase in flour production was seasonal in
character, miller's reports indicated the low price of wheat had
stimulated domestic buying, although orders were for small lots
and usually for 60 to 90-day shipments, and in a few instances
for shipment through January 1. There was slight improvement
in export flour trade late in July and early August. Moderate
sales to the Latin Americas were reported, and there were scattered sales to Scandanavia and Russia, but bookings for other
European countries''"were small;
-
Livestock
Movements of cattle from farms and ranges to the six leading
markets in this District in July were heavier than in June but
somewhat lighter than in July last year. The reports indicated
very few shipments during July were forced on account of dry
weather and feed shortage, the tendency being to withold cattle
from the market because of low prices and a slow dressed beef
trade.
July reports show the number of sheep and lambs arriving
at the six markets during the month was the largest for any July
on twelve years' records, with increases of 12.2 percent over
June and 8.6 percent over July last year. The marketing of
hogs during the warm summer month of July declined seasonally,
with receipts at the six markets in July the smallest in number
recorded for any month since October, and 16.7 percent below
the total for July 1929.
Horses and mules received at the six markets during July
totaled only 1,752 head, the smallest number received in any
single month in the twelve years these statistics have been compiled. Receipts in June were 3,806 head, and in July last year
they were 5,343 head.
CO DITIO S: Pastures and ranges throughout the Tenth
District, as elsewhere, were damaged and livestock declined in
condition as a result of the hot, dry weather which continued
through July to the middle of August when checked by rains
and cooler temperatures.
Reports of the United States Department of Agriculture and
State Boards of Agruculture showed the August 1 condition of
pastures in the farming areas of Missouri, Kansas, Oklahoma and
parts of Nebraska was the lowest for many years. Stock water
in many sections was low, and livestock lost flesh.
The monthly range report of the United States division of
crop and livestock estimates indicated Colorado and ew
Mexico ranges improved by July rains and feed prospects were
good, while in Wyoming and in the western plains of Kansas,
Oklahoma and ebraska ranges were dry but generally there
was a good supply of feed.
The report indicated cattle in Colorado were in good shape,
having made gains during the month. Cattle did well in ew
Mexico and western ebraska, and held up well under dry conditions in Wyoming and on the Upper Great Plains areas. Sheep
and lambs in Colorado were reported as having made good gains
during July. They did well in New Mexico, but showed some
slight shrinkage in parts of Wyoming.
The United States division of crop and livestock estimates,
in its monthly report on the condition of ranges, cattle and sheep
in thirteen western range states, gave the following figures as
the composite percentages of normal condition:
(Condition, percent of normal)
Range•
August 1, 1930......................................................
82
July 1, 1930.·--······--············································ 88
August 1, 1929...................................................... 86
Five year average................................................ 88.5
RECJUPTS
Kansas City..............................
Omaha........................- ........... .
St. Joseph ................................
Denver.........·-··························
Oklahoma CitY··········-············
Wichita·-····· · · · - - --
37,597
15,488
21,696
11 ,539
Calves
2J,4H
5,098
6,692
2,482
9,878
3,697
July I 930.... ············-················ 321 ,957 51,302
June 1930.................................. 312,156 43,849
July 1929.................................. 365,253 53,459
Months 1930·---·············:..... 2,447,677 352,859
7 Months 1929·---·····-············ 2,363,244 34 1>495
*Includes 91,823 hogs direct to packers' yards.
Hogs
* 229,074
314,394
113,193
'31,344
18,631
34,981
90
Sheep
89
92
90
94·3
89
90.3
CATILE O FEED: The num her of cattle on feed for market
in the eleven Corn Belt states August I this year was about I
percent smaller than at the same date in 1929, according to the
estimates of the Department of Agriculture. The states east
of the Mississippi River as a whole had about 8 percent Jess cattle
on feed this year than last, while the states west of the river had
2 percent more. Substantial increases in the number on feed
are shown for Iowa and Nebraska while all of the other states
had decreases or no change from last year. The estimated num-
JULY MOVEMENT OF LIVESTOCK I
Cattle
11 7,75°
117,887
Cattle
87
THE TE TH DISTRICT
PURCHASED FoR SLAUGHTER
STOCKERS AND FEEDERS
Sheep
130,765
245,731
115,882
59,504
6,503
6,599
Cattle
21,696
7,28o
3,922
4,973
741,617
564,984
852,650
5o3,333
890,7o5 . 516,536
6,220,317 4,939,o6 2
6,948,221 4,528,76o
37,871
40,221
58,332
486,275
455,088
Calves
1,783
141
928
260
3,112
6,449
5,266
58,767
51,222
Hogs
2,178
1,345
1,019
1,405
5,947
8,552
10,289
86,173
127,230
Sheep
9,981
47,92o
7,758
4,839
70,498
52,826
96,383
457,124
630,134
Cattle
70,181
78,798
29,828
8,437
16,245
5,840
Calves
Hogs
16,856 • 175,327
4,701
217,059
5,407
70,765
2,131
22,549
8,898
14,161
1,481
32,595
209,329 39,474
192,434 32,156
213,679 39,750
1,312,396 240,187
1,328,761 246,535
Sheep
116,574
171,693
105,669
14,896
5,365
5,323
419,520
532,456
677,416
379,o17
650,803
359,932
4,495,696 3,223,618
5,350,480 2,773,694
8
THE MONTHLY REVIEW
ber of cattle on feed August 1 this year as a percentage of the
number August 1, 1929 ·is as follows: Ohio, 100; Indiana, 90;
Illinois, 90; Michigan, 85; Wisconsin, 100; Minnesota, 100;
Iowa, 108; Missouri, 85; South Dakota, 100; Nebraska, 108;
Kansas, 9 5; Eleven states weighted, 99.3.
THE LAMB CROP:- The United States lamb crop of 1930 is
placed at 28,458,000, compared with 26,441,000 in 1929, an increase of 2,017,000 or nearly 8 percent, as reported by the United
States division of crop and liv~stock estimates. Of the Nation's
totariam b crop, thirteen western range states produced I 8,724,000
compared with 17,II 5,000 last year, an increase of 1,609,000
or 9.5 percent. The report shows a11 western states produced
more lambs than in 1929 except Texas, with crop only slightly
smaller than that of last year.
WOOL: Total wool produced in the United States in 1930
amounted to 327,989,000 pounds, 19,042,000 pounds or 6 percent
greater than the 1929 crop. This increase was brought about
not only by increased production of sheep but a higher average of
wool per sheep. Wyoming, ranking third in wool production,
(with Texas first and Montana second) reported this year's
wool production amounted to 28,710,000 pounds, an increase of
2,710,000 pounds over the 1929 output. Colorado's crop this
year was 10,800,000 pounds, an increase of 1,000,000 pounds
while Nebraska reported 3,081,000 pounds, a gain of 231,000
pounds.
Meat Packing
Meat packers at the six livestock centers during July purchased
larger numbers of cattle and calves for their slaughtering operations than in any preceding month of the present year. However,
their July purchases of these animals fell 2.6 percent and seventenths of 1 percent, respectively, below those for July last year.
The number of sheep purchased for slaughter during July was
the largest for the seventh month of any year of record. The
July total of 419,520 head exceeded that for June by 40,503 head,
and was 59,588 head above the total for July 1929. The summer
slaughter of hogs reached the lowest point of the season, the
July total showing a decrease of 21.4 percent from June and a
decrease of 18.2 percent from July last year.
Business Conditions in the United States
By the Federal Reserve Board
Business activity declined further during July and industrial
production and factory employment reached the lowest levels
in recent years. · Crops were damaged by prolonged drought.
Wholesale prices declined further until early in August when agricultural prices increased, money rates continued easy.
PRODUCTION AND EMPLOYMENT: Output of factories
and mines decreased by about 6 percent during July, according
to the Board's index of production, which makes allowance for
seasonal fluctuations. A number of automobile factories were
closed during part of the month and there was substantial
reduction in output of iron and steel and cotton textiles. Daily
average production of bituminous coal, lumber, and shoes
continued small. In the first half of August the output of steel
showed a further slight decrease. Some automobile plants
resumed operations on a limited scale.
Factory employment and wage payments decreased further
and at the middle of July were at the lowest level since 1922.
The reduction in number of workers employed was largest at
steel and automobile plants, car shops and foundries, hosiery
and cotton mills, and clothing factories. There was a seasonal
increase in employment in the canning, flour and shoe industries.
Working forces at bituminous coal mines were further reduced,
and the Department of Agriculture reported an unusually sma11
demand for farm labor.
Building contracts awarded during July and the first half of
August were in exceptionally small volume, according to reports
by the F. W. Dodge Corporation. The reduction from June
was primarily on account of smaller awards for public works and
utility construction. Building in other lines continued relatively
inactive.
Feed crops and pasturage have been severly damaged by
drought, which was not broken until the middle of August.
The August I crop report of the Department of Agriculture indicated a corn crop of 2,212,000,000 bushels, the smallest since
1901 and the smallest hay crop in ten years. Food crops were
less severly affected, with wheat production estimated at
821,000,000 bushels-I 5,000,000 bushels larger than last year.
The cotton crop was estimated at 14,362,000 bales, or slightly
less than a year ago.
DISTRIBUTION: Freight-car loadings have been in smaller
volume than at the same season of any other recent year. Department store sales declined in July to the lowest level since
the summer of 1924.
PRICES: The sharp downward movement of wholesale prices
continued through July, and the bureau of labor statistics index
fell to a level 14 percent below that of a year ago. The most
pronounced decreases from June to July were in the prices of
cattle, beef, wheat, cotton, silk, and rubber, and nearly all
commodities showed some decline. During the first half of
August, prices of grains moved upward, reflecting the influence
of the drought. There have also been recent increases in the
prices of cattle, hogs, silver, and silk, while the prices of cotton,
copper, iron and steel, and rubber have declined further to the
lowest level in recent years.
BANK CREDIT: Loans and investmynts of reporting member
banks in leading cities decreased slightly between July 16 and
August 13, largely as a result of a decline of $48,000,000 in security loans. All other loans showed little change, while investments increased further. Reserve bank credit outstanding increased by about $6o,ooo,ooo during the first... three weeks of
August, reflecting seasonal increases in the demand for-currency
and a decrease of about $25,000,000 in the country's gold stocks
chiefly on account of gold exports to France. The increase in
reserve bank credit was in the form of bankers acceptances and
United States Government securities. Member bank borrowings
showed Ii ttle change.
Money rates continued easy. The prevailing rate on commercial paper was reduced to 3 percent around the first of August
and remained at that level during the first three weeks of the
month. Bond yields continued to decline. Discount rates at
the Federal Reserve banks of St. Louis, San Francisco and Kansas
City were lowered from 4 to 3½ percent during August.
I
@FedFRASER