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THE MONTHLY REVIEW Of Agricultural, Industrial, Trade and Financial Conditions in the Tenth Federal Reserve District FEDERAL Vol'. 17 RESERVE KANSAS CITY, BANK Mo., T HE index average of farm prices and the purchasing power of the farm dollar, as computed by the United States Department of Agriculture, advanced 5 points between June 15 and July 15, the former being equal to 57 percent and the latter 53 percent of the 1909-1914 average. The increase was attributed to higher prices of hogs, cattle, eggs, cotton, and some minor crops. Since July I 5 prices of hogs have declined about 50 cents per hundredweight, but prices of wheat~ corn, butterfat, eggs, wool, and hides have advanced somewhat and those of cattle and sheep have been comparatively steady. Crop prospects in the Tenth Federal Reserve District are reasonably good, although the August I estimates were not as promising as those of July 1. Livestock are in good condition and, with an abundance of corn promised for the feeding areas, normal range conditions, a larger hay crop, and more range feed than a year ago, carrying power is greatly increased over that of last year. Retail trade experienced somewhat more than the usual mid-s·ummer dullness, with July department store sales at new low levels. Wholesale trade also declined during· July and sales were substantially smaller than for July, 1931. All minerals reported a heavy reduction as compared to a year ago, but the July output of cement exceeded that for June. Flour production increased seasonally for the month but declined 13.2 percent for the year. Building operations continue at about 20 percent of the ten-year average volume. Financial · MEMBER BANK OPERATIONS: Weekly condition statements of fifty-four reporting member banks in leading cities of this District, reflect a further reduction during the four weeks ended August 10 in all classes of loans and discounts. Reductions carried loans secured by stocks and bonds to 1922 levels, and "all other" loans and total loans to new . low post-war levels. Investments showed little change in four weeks, but on August IO were 4.2 percent smaller than on August 12, 1931. Investments in United States Governement securities, which increased 2.9 percent in four weeks and 16.3 percent in fifty-two weeks, were offset by declines in investments in other bonds, stocks, and securities. Net demand . deposits declined 2.1 percent and time deposits 0.2 percent in four weeks, and 18.7 and 11.8 percent, respectively, in fifty-two weeks. RESERVE BANK OPERATIONS: Member banks of the Tenth Federal Reserve District reduced their indebtedness to this bank and branches $1,720,868 between July 13 and August 10. This babk's holdings of bills rediscounted for member banks as of August 10 were i18,713,879 less than on OF SEPTEMBER KANSAS CI TY No. r, 1932 9 BUSINESS IN THE TENTH FEDERAL RESERVE DISTRICT Percentages of Increase, or Decrease (-), for July 1932. over June 1932. and July 1931 and for the first seven months of 1932. over the like period m 1931. July 1932. 7 Months 1932. Compared to Compared to Banking June 1932. July 1931 7 Months 1931 Payments by check, 2.9 cities.................. 3.1 -2.8.4 --28.4 Federal Reserve Bank clearings.............. - 4.2. - 30.5 --26.6 Business failures, number.... _ _ __ 30.6 31.8 15.3 Business failures, liabilities_ _ __ 12..4 169.2. 64.6 Loans, 54 member banks·--····················· - 1.1 -2.4.7 Investments, 54 member banks.............. 0.03 - 4.1 Net demand deposits, 54 membei: banks - 1.1 -18.7 Time deposits, 54 member banks·--······· - 0.1 -11.8 Savings deposits, 48 selected banks·-- ··· - 1.0 -12..7 Savings accounts, 48 selected banks...... - 0.4 - 3.4 Distribution Wholesalers' sales, 5 lines combined...... -13.4 -31.8 Retailers' sales, 34 department stores.... -13.9 -2.9.7 Lumber sales, 163 retail yards................ 9.8 · -48.7 Construction -31.0 -61.5 Building contracts awarded, value·---··· 104.4 Residential contracts awarded, value.... - I 5.3 -63.1 -,0.3 -80.1 Building permits in 17 cities, value........ - 39.3 -,5.3 Production -13.2. . ·- 1.5 Flour---·- - - - -- -17,1 -16.1 1.I Crude petroleum..·- ···········- -- - · -13,8 -7.7 Soft coaL....- -- - - -- -38.6 Zinc ore (shipped) Tri.state District...... -56.5 Lead ore (shipped) Tristate District...... -58.1 - 1 3.7 -50.0 -2.7.1 15.0 Cemenc.--- - - - - · - - -Grain receipts, 5 markets -35.6 263.0 WheaL .........- - - -- - -- -76.1 Corn ....- -- -- - -·······- ·········· -16.8 -3o.5 . 107.7 Oat.5 --- - -- - - - -- - -48.3 -33.o :~re_le_y_ _ __ _ _ _ __ _ ...:...33.o 12.3.9 Kafir _ __ _ _ _ _ __ _ -43.7 111.0 . 1 5·9··· Livestock receipts, 6 markets ~:~!~s·-······ ---- Hogs ...................... _ _ _ _ _ __ Sheep ...............................- - - - Horses and mules ...................................... Meat packing, 6 markets Cattle.... - - - - - - - - - Calve:;__ _ ________ Hogs .............- - -- -- - - Sheep .......... - - - - - - - - 5.6 - 2.7 - 14.1 -18.1 1 3•7 - 9.6 - 13. 4 - 6:3 - 1 7.o 0.02 - 3.3 -12.0 6.6 -7-5 -61.2 -16.7 -11.3 15.5 - 1 6.7 ...,... 5.6 .. - 8.7 ~6.1 - 4•5 March 2 , the high point this year, and .were at the lowest point since October 7, 1931 , although $9,151, 475 greater than on August 12 of that year. Member bank reserve deposits declined 1.2 percent in four weeks and on, August 10 were 1,5.8 percent less than one year earlier. This bank purchased $901,000 of United States securities in the four weeks ended August IO, and total holdings as of that date were $18,190,100 larger than one year earlier. · Federal reserve note circulation increased 4.8 percent in four weeks, and , was $95;1•83,215 on . August IO. This Copy Released For .~blication I~ Morning Ne~spapers,.August i9 2 THE MONTHLY REVIEW Principal resource and liability items of the fifty-four reporting banks and of the Federal Reserve Bank of Kansas City, as of three dates, follow: REPORTING MEMBER BANKS Aua. IO, 1931 July 13, 1931 Aug. 12, 1931 Loans aad investments-total_ J517,543,ooo $530,331,000 J626,02 I ,ooo Loans and diacounts-total_ 166,058,000 168,910,000 353,342,000 Secured by stocks and bonds 78,178,000 78,554,000 98,895,000 All other loans and discounts 187,880,000 190,356,000 154,447,000 lpvcstments-tota...__ _ __ 161,485,000 161,412,000 172,679,000 U. S. securities .. ______ 122,017,000 141,918,000 137,873,000 Other bonds, stks, and acc. __ I 50,662,000 II9,567,ooo 123,549,ooo Reserve with F. R. banL....__ 51,482,000 44,653,000 44,819,000 Net demand deposit..__ __ 432,130,000 351,667,000 359,012,000 Time deposits .. ______ 202,276,000 178,391,000 178,684,000 Government deposit~•----986,000 4,499,000 J,8o6,ooo FEDERAL RESERVE BANK Aug. 10, 1931 July 13, 1931 Aug. 11, 1931 Gold rcscrv~------ J 83,766,574 J 79,097,965 J 91,639,269 Reserves other than go)cl_ __. 5,on,038 4,816,032 7,265,619 Total reserves.. _ _ _ _ _ _ 88,777,612 83,913,997 98,904,888 Bills discounte...______ 21,224,580 22,945,448 12,073,105 Bills purchase~----945,758 1,536,403 3,702,330 U. S. securities______ 57,267,100 56,366,100 39,077,000 Other eccuri~ .....________ ____ -···················· 780,000 Total billa and securities............ 79,437,438 80,847,951 55,632,435 Total resources .. _ _ _ _ _ 193,033,575 193,310,677 187,371,281 F. R. notes in circulation.......... 95,183,215 90,865,565 64,067,240 Member banks' reserve deposit• 67,oo6,653 67,808,393 79,574,814 The discount rate of the Federal Reserve Bank of Kansas City, on all classes of paper and all maturitirs, remained unchanged at 3¾ percent. SAVINGS: Savings deposits, as reported by forty-eight selected banks in leading cities of this District, declined 2 percent in July. The rate of decline in the number of accounts showed little change from that of the preceding five months, amounting to 0.4 percent in July. Compared to August I last year, savings deposits declined 12.7 percent and the number of accounts 3.4 percent. Savings deposits and savings accounts as reported by the forty-eight banks: August I, 1932...... _ _ _ _ _ __ July 1, 1 9 3 - - - - - - - - - - August 1, 1931...... _ _ _ __ Savings Accounts 403,910 405,684 418,027 Savings Deposits $I 13,631,086 II 5,896,196 130,155,650 Business Failures Commercial insolvencies in this District during July were more numerous than in June this year or July last year as was the amount of liabilities involved. Business failures in this District and the United States as reported by R. G. Dun and Company: Bank Debits Banks in twenty-nine leading cities of the District reported debits to individual accounts, during the five and thirty--0ne week periods ended August 3, as 28.4 percent smaller than in the corresponding five and thirty-one weeks of 1931. The total for the five weeks exceeded that of the preceding five weeks by 3.2 percent. PAYMENTS BY CHECK FIVE WEEK.S ENDED Albuquerque, N. M _ _ __ Atchison, Kan,,.__ _ _ __ Bartlesville, Oki..__ _ __ Casper, Wyo _ _ _ _ _ __ Cheyenne, Wyo ... _ _ _ __ Colorado Springs, Colo.·--···--·· Denver, Colo... _ _ _ _ __ Enid, Okla......... _ _ __ Fremont, Nebr_ _ _ _ __ Grand Junction, Colo······-·····Guthrie, OkJ-._ _ _ _ __ Hutchinson, Kans. _ _ __ Independence, Kans. _ _ __ Joplin, Mo......... _ _ _ __ Kansas City, Kans •....... -..........• Kansas City, Mo. _ _ _ __ Lawrence, Kans, _ _ _ __ Lincoln, Nebr_ _ _ _ __ Muskogee, Okla .._. _ _ __ Oklahoma City, OJd...___ __ Okmulgee, Okla. _ _ _ __ Omaha, Nebr...,_ _ _ _ __ Pittsburg, Kans., _ _ _ __ Pueblo, Colo··--·----Salina, Kans _ _ _ __ St. Joseph, Mo, _ _ _ _ __ Topeka, Kans _ _ _ _ __ Tulsa, OkJ..___ _ _ _ __ Wichita, Kans·-··· · -- - Total 29 Total 29 U. S. 263 U. S. 263 cities, cities, cities, cities, Aug. 3, 1931 8,951,000 $ 3,2 55,000 20,711,000 4,926,000 5,954,ooo 14,190,000 113,470,000 11,583,000 2,537,000 1,793,000 1,301,000 17,945,000 3, 279,000 5,579,ooo 14,309,000 275,217,000 3,678,000 15,247,000 6,801,000 74,708,000 2,765,000 132,014,000 Aug. 5, 1931 u,708,000 5,152,000 18,477,000 6,o64,ooo 7,251,000 17,639,000 161,587,000 20,764,000 3,59 1,000 3,037,ooo 1 ,539,000 26,484,000 6,874,000 7,964,000 21,925,000 395,905,000 4,948,000 35,251,000 8,961,000 100,599,000 3,611,000 196,180,000 Percent Change --23.5 -36.8 12.1 -18.8 - 1 7.9 -19.6 --29.8 -4-4.1 --29.4 -41.0 -48.7 -32.2 -5 2 .3 --29.9 -34-7 -3o.5 --25.7 --28.4 --24.1 --25-7 --23.4 -3 2 .7 -3o.3 3,353,000 4,813,000 15,388,000 9,562,000 24,968,000 17,140,000 76,373,000 21,962,000 13,048,000 38,988,000 20,492,000 91,278,000 45,355,000 59,955,ooo --29.9 -26.7 -36.0 -16.4 -16.3 -24.4 S weeks.......... J 942,353,000 '$ 1,317,048,000 8,290,124,000 31 weeks·-······· 5,933,513,000 5 weeks.......... 31,513,354,000 46,597,803,000 31 weeks.......... 219,500,778,000 333,391,659,000 -28.4 -28.4 -30.1 -34.1 Building Compared to the average of recent years building act1v1ty in this District during July was extremely dull. The estimated cost of construction of new building operations for which permits were issued in seventeen reporting cities, was the smallest for any month in recent years, 80.2 percent below a year ago, and only equal to II percent of the ten-year average for July. There were 896 permits issued during the month as compared to 1,396 a year ago and a ten-year average of 2,421. UNITED STATES BUILDING PERMITS IN TENTH DISTRICT CITIES Liabilities Number Liabilities PERMITS EsTIM>.TED CosT July 1931. _ _ _ _ __ $ 3,639,171 2,596 J 87,189,639 . 1932 1931 1932 1931 June 1931--........ _ _ _ __ 3,237,825 2,688 76,931,452 45 66 J 29,523 $ 264,070 Albuquerque, N. M.·--·····-·········-····· July 1931................ _ __ Colorado Springs, Colo _ _ _ _ _ 1,351,878 1,983 6o,997,853 25 37 10,522 23,105 Denver, Colo....... _ _ _ _ __ 271 342 189,015 391,650 Hutchinson, Kans ... _ _ _ _ _ _ Federal Reserve Bank Check Collections 17 18 5,105 50,855 Joplin, Mo ............... _ _ _ _ __ 14 23 4,500 20,301 Check collections through this bank and branches in July Kansas City, Kans ....... _ _ __ 28 70 30,000 70,206 as compared to June showed declines of 18.9 percent in the Kansas City, Mo ........_ _ _ __ 133 164 132,300 327,400 27 57 26,66o 258,285 number of items handled and 4.2 percent in the dollar amount. Lincoln, Nebr.·-·· - ---,.,__City, Okla ......................... 79 152 142,684 1,118,315 The July totals show a reduction of 32.1 percent in the number Oklahoma Omaha, Nebr... _ _ _ __ 61 94 l 10,575 599,4o3 and 30.5 percent in the value of checks handled as compared Pueblo, Colo.·--················---36 55 4,172 18,195 to a year ago. 10 30 5,315 37,740 Salina, Kans.·-····· · · - - - - Okla ................•.................... 3 5 700 3,02 5 Check collections through the Federal Reserve Bank of Shawnee, St. Joseph, Mo ________ 17 38 10,620 14,410 Kansas City and branches: 42 51 35,26o 39,170 Topeka, Kans ...·-·············- - - ITEMS A.MOUNT 24,175 49 119 512,999 Tulsa, Okla.·--·~·································· Wichita, Kans ................. - .................. 1931 1932 1931 1931 39 75 31,689 255,720 5,510,201 3,742,110 '$ 517,659,000 . $ 744,991,000 July·--··············· Total 17 cities, July _ _ __ June .................. 4,614,109 540,241,000 736,512,000 J 791,915 $ 4,005,849 5,754, 17° Scve11 months.. 3 1,593,85'2 38,548,093 3,749,7 2 9,000 5, 105,594,000 Seven months ...... _ _ _ __ 7,918,584 32,009,555 TENTH DISTRICT Number 141 108 107 THE MONTHLY REVIEW J RETAIL TRADE AT 34 DEPARTMENT STORES IN THE TENTH FEDERAL RESERVE DISTRICT SALES STOCKS (RETAIL) Accou}fra RECEIVABLE COLLECTIONS Stores July 1932 7 Months 1931 July 31, 1932 STOCK Tua.Novu July 31, 1932 July 1932 Report- compared to compared to compared to July 7 Months compared to compared to ing July 1931 7 Months 1931 June 30,1931 July 31,1931 1931 1931 1931 1931 June 30, 1931 July 31, 1931 June 1932 July 1931 Kansas City_______ 4 -32.5 -17.8 - 8.o -II.I .II .15 I.IO I.40 -17.7 -19.9 2 -7 - 1 9.9 Denver_ _ _ 5 -30.1 -19.7 -10.1 -12.2 .18 .11 1.50 1.63 -10.0 -11.9 - 7.8 -13.2 Oklahoma City_ 3 -11.9 -16.1 -15.8 -30.2 .17 .16 1.54 1.68 - 9.6 -12-4 - 3.8 -31.9 Topek....__ _ _ 3 -31.8 -11.8 - 8.4 -10.I -II.I -11.8 - 6.1 -24-4 Tulsa_.................. 3 -17.7 -17.9 - 7.7 -18.3 .23 .10 2.41 2.21 -12.4 -18.0 - 8.1 -14.5 Other cities _________ 16 -30.7 -15.3 -13.b -11.6 .18 .21 1.51 1.66 - 9.4 -15.4 -13.8 -31.8 Tota.________ 34 -19.7 -13.9 -10.7 -10.2 .16 .19 1.41 1.59 -10.9 -14.8 NOTE: Percentage of collections in July on accounts June 30, all stores reporting 31.6. Collections same month last year 36.8. The value of total building contracts awarded in the District as reported by F. W. Dodge Corporation, although more than double that for June, was 32 percent smaller than a year ago and 57.7 percent smaller than the· 1927-1931 average. Construction in the United States also increased somewhat for the month, but was 73.4 percent short of the average. Residential construction in both this District and the United States was reported as the smallest for any month in recent years, declining 86.4 percent for the District and 67.4 percent for the nation as compared to the average of the past five years. The F. W. Dodge Corporation report on total building contracts awarded: July_ __ June _________________ Seven months_ TENTH DtSTJt.ICT 1932 1931 '$ 8,195,303 '$ 12,o6o,054 4,009A32 16,363,450 38,4o6,38 5 102,513,424 UNITED STATES 1932 1931 '$128,768,700 t, 285,997,300 113,075,000 331,!!79,700 795,848,400 2,094,224,100 Lumber Sales of lumber at 163 retail yards in this District, disregarding inventory influences, increased 9.8 percent in July . but were 48.7 percent smaller than a year ago. Sales of all materials in dollars were unchanged for the month but off 48.5 percent as compared to July, 1931. Stocks of lumber were reduced slightly during July and 15.6 percent for the year. Collections during July, on accounts outstanding as of June 30, amounted to 19.8 percent as compared to 18 percent in June and 28.9 percent in July last year. Percentages of increase or decrease for July as compared to June this year and July last year, are shown in the following: Sales of lumber, board feet__________ Sales of all materials, dollars_____ Stocks of lumber, board fee'----Outstandings, end of month_____ July 1932 Compared to June 1932 July 1931 9.8 -48.7 Even -48.5 - 1.6 -15.6 - 3.3 -16.7 Production of lumber in the United States remains stationary at 22 percent of normal for the week and thirty weeks ended July 30, according to reports to the National Lumber Manufacturers Association. Shipments and orders received during the thirty weeks have exceeded production by 25 percent and 21 percent, respectively. Cement For the first time since February, production of finished Portland cement at mills in this District exceeded shipments. Stocks increased 290,000 barrels and on July 31, were the largest in four months. Reporting Stores Dry Goods·--·-·····---·--···· 6 Groceries .... 5 Hardwar 9 Furnitur 5 Drugs 6 -8.o Figures on production, shipments, and stocks for mills in the District as compiled from the July report of the United States Bureau of Mines: Produced ________ Shippe-d~----Stocks, end of month. ______ _ July 1931 Barrels 900,000 610,000 1,966,000 June 1932 Barrels 720,000 765,000 1,676,000 July 1931 Barrels 1,234,000 1,331,000 2,233,000 Trade RETAIL: There was a seasonal decline of 23.9 percent in the dollar sales of thirty-four reporting department stores in this District during July, comparing with 25.1 percent last year and a five-year average rate of t9.3 percent. July is ordinarily a dull month, with sales increasing each succeedini month thereafter and reaching their peak in December. Sales, as compared to July last year, declined 29.7 percent, thus establishing a new record for the present movement in the decline of sales for the month under review as compared to the corresponding month of the preceding year. Net reduction in inventories between June 30 and July 31 of 10.7 percent was somewhat greater than usual. For the sixth successive year the retail value of stocks at the close of July were lighter than one year earlier, declining 20.2 percent this year, 10.6 percent in 1931 as compared to 1930, 9.1 percent in 1930, and from I to 2 percent in 1929, 1928, and 1927. WHOLESALE: Reports from wholesalers' of drygoods, groceries, hardware, furniture, and drugs, located in the Tenth District, reflected the dollar volume of their July sales declined, respectively, 12.7, 7.4, 22.5, 29.7, and II.I percent as compared to June. Under normal conditions sales of drygoods and drugs increase somewhat, whereas, sales of furniture decline from 25 to 30 percent and of hardware about 10 percent. Compared to July last year, sales of drygoods, groceries, and hardware declined approximately one-third, furnit~re one-half, and dn1gs one-fourth. Month-end inventories, with the exception of drygoods, were slightly smaller on July 31 than on June 30, with all lines reporting substantial decreases as compared to July 31, 1931. COLLECTIONS: Collections by department stores in July equalled 31.6 percent of amounts outstanding on June 30, as against 32.8 percent in June this year and 36.8 percent in July, 1931. All wholesale lines reported July collections decidedly slower than a year ago and, with the exception of drygoods, as running less than in June. WHOLESALE TRADE IN THE TENTH FEDERAL RESERVE DISTRICT OUTSTANDINGS COLLECTIONS SALES July 1932 compared to July 31, 1931 compared to July 1932 compared to June 30, 1932 July 31, 1931 June 1932 July 1931 June 1932 July 1931 -16.9 -z6.8 5.2 -12.7 -34.8 -3.3 -12.6 - 9.2 - 1.9 -7-4 -3 2.9 - 19.9 -12.1 -4.2 -30.2 -3-4 -12.5 -33. 2 -30.8 -56.0 -54.1 -29-5 - 5.8 -19.7 -21.1 -16.6 - I.I -11.7 - .I I.I -4.5 STOCICS July 31. 1932 compared to June 30, 1931 July 31, 1931 12.6 -11.5 -0.5 - 17.3 -11.0 - 2.9 - 2.7 -18-4 -18.3 -3.7 4 THE MONTHLY REVIEW Grain Marketing July receipts of all cla,~foeS of grain at the five principal Tenth District markets were below the ten-year average for that month as follows: wheat, 20.2; corn, 80.6; oats, 49.2; rye, 90.9; and kafir, 46.8 percent. Arrivals of wheat during the first month of the new crop year were the smallest for any July since 1927 and 53.7 percent short of the July, 1931, record volume. Shorter supplies were due largely to a 44 percent reduction in the winter wheat crop and to unsatisfactory prices. Marketings of corn and rye were smaller and of barley larger than in June this year or July last year. Marketings of oats increased seasonally but were 35.6 percent smaller than a year ago. Less kafir was r·eceived in July than in June, but July receipts were over twice as large as a year earlier. Receipts of grain at the five principal markets of this District: Hutchinson ... Kansas City.. Omaha...·-··St. Joseph ..... Wichita.---··· Wheat Corn Oats Rye Bushels Bushels Bushels Bushels 10,739,250 7,5 00 16,r52,000 78,000 334,500 4,500 1,400 263,200 416,000 3,864,000 102,000 2,737,6oo 67,500 6,500 7,497,ooo July 1932...... 41,289,850 679,200 June 1932·--· u,374,200 816,500 July 1931....- 89,156,050 2,930,450 596,000 287,000 926,100 5,900 8,800 7,300 Barley Bushels IJ,250 76,800 8,000 Kafir Bushels 22,100 70,000 6,500 5,200 102,550 45,800 90,350 97,300 172,700 45,900 The average quality of wheat arriving at terminal markets has been excellent, with high protein samples so prevalent as to result in lower premiums. Millers and elevator men were active buyers for the comparatively light offerings. PRICES: Number 1 hard and dark wheat at Kansas City opened at 42 cents per bushel, declined to 40 cents on July 18, and then steadily advanced to close at 47 cents as against 41,½ cents a year ago. Prices strengthened slightly the first few days of August but subsequently declined to August 1 levels. Bottom prices of mid-July were 2¼ cents per bushel above the low of last October. Corn prices advanced gradually the afterpart of July and from then on retained most of their gain, number 2 mixed being .q uoted at 28¼ cents per bushel on July 1, and 32¼ cents August 1 as against 53¼ cents and 48 cents per bushel on the corresponding dates last year. Number 2 white oats registered a net decline of 3 cents per bushel for the month and the year, dosing at 18 cents per bushel. Rye declined 3 cents and barley 4 cents per bushel for the month. Flour Milling Southwestern mills, reporting their weekly output to the Northwestern Miller, operated at 60.5 percent of full time capacity during July as compared to 56.6 percent in June and 65.9 percent in July, 1931. Starting the new cereal year, production of fl.our increased 7.2 percent o~er June, but declined 13.2 percent as compared to July last year. The increase over June was somewhat below the average and compares with 31.3 percent last year and 10.6 percent in 1930. Sales were not as activ:e as usual at this season, although in moderate volume. Most orders were for small lots for shipment within ninety days. Demand broadened the latter part of the month and a few roun:d and large lots were sold with some deliveries extending to the first of the year. Bakers were not buying their full requirements, reporting old stocks lasting longer than anticipated. The family trade demand continues above normal. Prices were irregular and closed unchanged for the month. The number of barrels of flour produced at the leading milling:centers of this District in July, with comparisons: July 1932 Barrels 109,974 Ate hi so,.___ _ _ _ _ _ _ __ Kansas CitY----················-········ Omaha...... _ _ _ _ _ _ __ Salina.... _ _ _ _ _ _ _ _ __ St. Joseph .......... _ _ _ _ _ __ Wichitii--_ _ _ _ _ _ _ __ Outsid..__ _ _ _ _ _ .................... Total_···················· · - · - - - - - - 573,554 June 1932 Barrels 102,287 July 1931 Barrels 141,610 525,355 650,438 67,845 66,557 112,142 155,915 146,6o1 64,245 205,474 72,783 691,302 209,309 639,207 137,162 845,904 1,880,109 1,753,561 2,165,513 86,258 195,261 Millfeed demand was slow to weak throughout the month but improved somewhat at the close. Supplies were liberal, with production at interior points being taken largely by the mixed car trade. Prices were low but strengthened as grain prices advanced, bran and shorts showing a net gain of 40 cents per ton for the month. Crops The condition of all crops remaining for harvest in this District, except tobacco, declined in July as a result of high temperatures and insufficient moisture. Rains received the forepart of August were somewhat scattered and varied considerably in amounts, ranging from a trace to an excess, and in some instances arriving too late to improve corn prospects although preventing further deterioration. In the northeastern part of the District, where the corn crop is excellent, the present moisture supply is generally adequate but other sections are in immediate need of rain. From now until harvest time frequent rains will be essential to best crop yields. Threshing returns reveal yields of wheat higher than previously expected, but yields of oats, rye, and barley are not quite up to preliminary estimates. Late cuttings of hay will be light and, except in northeastern Kansas and eastern Nebraska, pastures are badly burned. Fall plowing has been delayed by the hard, dry soil condition and weed growth. LEADING FARM CROPS IN THE TENTH DISTRICT (Compiled from the August reports of the United Stales Department of Agriculture) TENTH DISTRICT Winter wheat, bu. Spring wheat, bu. All wheat, bu ..... _ Corn, bu ............... Oats, bu.·--·········Potatoes, bu......... Tame hay, tons._. Cotton, bales......- Aug. 1, 1932 163,559 7,077 170,636 5n,729 144,792 40,489 8,619 868 July 1, 1932 153,226 7,653 16o,879 6o8,144 147,16o 45,175 8,821 UNITED STATES Aug. 1, Aug. 1, July 1, Aug. 1, 1931 1932 1932 1931 398,096 441,788 431,762 789,462 4,025 280,899 305,209 104,742 402,121 722,687 736,971 894,204 393,884 2,819,794 2,995,850 2,563,271 147,712 1,214,733 1,217,244 1,112,037 27,780 367,399 377,7~ 375,518 7,270 67,390 68,259 64,213 1,336 u,3o6 17,096 The August I condition of Colorado crops was officially reported as the lowest of record with the abandonment of spring sown crops expected to be heavier than last year. A shortage of irrigation water in the Arkansas valley and an abundance in the San Luis valley were reported. The non-irrigated sections of Wyoming suffered heavily as did central and western Kansas, Nebraska, and Oklahoma. Missouri and New Mexico suffered the least of any of the Tenth District states, corn doing well in the former and the latter reporting crops generally good to excellent. CORN: Hot and dry weather in July, when a majority of the corn was at the critical stage of development and rains and cool weather were needed; caused a rapid decline in condition in all parts of the District except Missouri, eastern Nebraska, and northeastern Kansas, where prospects are excellent. In Oklahoma, early corn has matured and the crop is fair to good, but the late. crop has been injured severely. In the northern states, early corn suffered the greatest injury THE MONTHLY REVIEW with the final results of late plantings depending upon future moisture supplies. On August I 5 the Kansas State Board of Agriculture reported corn prospects in the southeastern part of that state as dwindling rapidly, with that in the western part injured beyond recovery, being good for nothing but fodder. Corn in western Nebraska has fared better than that in western Kansas and eastern Colorado. After making allowance for the injury in July, estimated at 16 percent, the United States Department of Agriculture placed this District's 1932 corn crop at 5II,729,ooo bushels, II7,845,ooo bushels larger than the crop harvest last year and 8.7 percent larger than the 1927-1931 average yield. WHEAT: Winter wheat production for this District is now estimated at 163,559,000 bushels or 10,333,000 bushels more than on July 1, and the spring wheat crop at 7,077,000 bushels or a decrease of 576,000 bushels for the month. Last year's yield of winter wheat totaled 398,096,000 bushels and of spring wheat 4,025,000 bushels. The largest potential spring wheat crop since 1928, largest farm reserves in over thirty years, and a total carryover in excess of that of last year makes the season's prospective supply of wheat for the United States, after allowing for a reduction of 347,674,000 bushels or 44 percent in the winter wheat harvest, total 1,074,592,000 bushels, or 118,413,000 bushels less than last year. The season's supply as estimated by the United States Department of Agriculture and based on the July I carryover, and the August I forecasts of winter and spring wheat production: 1932 Bushels Carryover July I-- --·-························-- - ·· Winter wheat forecast August I.----··················· Spring wheat forecast August 1................ ........... . Total supply, United States _______ 351,905,000 441,788,000 280,899,000 1,074,592,000 1931 Bushels 298,801,000 789,462,000 104,742,000 1,193,005,000 The present price relationship between wheat and corn would indicate that less wheat will be fed to livestock this year than last. Last season wheat sold for less than corn but this year costs are reversed. COTTON: Oklahoma, the principal cotton producing state of this District, will have, according to August I estimates, a crop of 776,000 bales. Last year's crop totaled 1,261,000 bales but the acreage was II percent greater. In New Mexico, where the cotton acreage is 4 percent less than a year ago, the crop is reported good. Tenth District production of cotton is estimated at 868,ooo bales and United States production at n,306,000 bales as against 1,336,000 and 17,096,000 bales, respectively, picked last year. The Bureau of Census reported the nation's carryover of cotton, from the cotton year ended July 31, at 9,682,316 bales as against 6,369,993 bales last year, making the prospective supply for the coming year 20,988,000 bales as compared to 23,170,748 bales for the year just closed. Domestic consumption for the year ended July 31 was placed at 4,869,103 bales and net exports at 8,706,890 bales. HAY: Tame hay prospects are not as promising as a month ago, the tame hay crop for this District being cut from 8,821000 tons July I to 8,619,000 tons August I. Third ·cuttings of alfalfa have been short. Wild hay prospects are generally good. A larger than usual proportion of the oats crop was cut for hay. All states of the District, except Missouri, will have more hay this year than last. POTATOES: A record crop of 40,489,000 bushels of white potatoes is promised for the District, and United States production is forecast as below that of last year but above the average. 5 All Tenth District states report a large crop this year although the condition declined somewhat during July, especially in Colorado. When prices of Kaw valley potatoes declined to 30 to 35 cents ·per hundredweight, many producers discontinued digging, resulting in a large percentage of the crop being allowed to rot in the ground. BROOM CORN: This District, which produces about 90 percent of the nation's broomcorn, and with harvest at hand, will have a smaller acreage and a larger yield of broomcorn this year than last. Quality varies, and some fields are being harvested before they are ripe on account of chinch bug injury. DRY BEANS: Growing conditions for dry beans have been extremely unsatisfactory in Colorado, but fairly good in Wyoming. Tenth District production will be somewhat smaller this year than last, with United States production off about 25 percent. FRUIT: Prospects for a sub-normal fruit crop changed little during July. Cantaloupes from the Rocky Ford district of Colorado are moving to market as are grapes from the Ozark regions of Missouri and melons from Oklahoma, Missouri, and Kansas. Elberta peaches are about ready to harvest in Colorado, which reports a record peach crop, and the picking of apples is commencing in southern Missouri. LABOR: With a supply of farm labor double the demand, farm wages are the lowest in thirty years, averaging 87 percent of pre-war levels. Livestock MARKET MOVEMENTS: Receipts of cattle, calves, and hogs at the six principal livestock markets of this District during July were substantially below the ten-year average for that month, but marketings of sheep were 4 percent heavier. Arrivals of cattle were larger in July than in June but 10.7 percent smaller than in July, 1931. Little change was noted in calf numbers, but marketings of hogs and sheep declined both as compared to the preceding month and a year ago. Supplies of-horses and mules were extremely light, being 61.2 percent less than a year ago and 50.4 percent short of the tenyear average. Reports of sixty..one public stockyards in the United States show the .following declines in the number of head of livestock marketed in July as compared to the 1927-1931 July average: cattle, 18.7; calves, 16.2; hogs, 26.6; and horses and mules, 41.6 percent. Marketings of sheep were 6.4 percent in excess of the average. PRICES: With the exception of beef steers, top prices of which were 1,1 higher for the month, carrying the July top above July, 1931, all species of livestock were lower than a year ago. Calves were 1,3 per hundredweight lower, with other grades ranging up to fractional declines for feeders which were steady to lower for the month. Fat and feeder lambs were 25 cents per hundredweight higher for the month, but the Kansas City top of $6.40 for fat lambs was 1,2.50 under a year ago. Hog prices, which reached the highest levels since last October on August II, receded to close 20 to 30 .cents lower for the month, with the month's top of '$5 being $3.8 5 per , hundred pounds under July last year. Stock pigs were higher but . all other classes were below the June close. STOCKER AND FEEDER SHIPMENTS: The demand 'for stocker and feeder cattle improved in July. For the first -time since last. September, shipments from four Tenth District :markets exceeded those for the corresponding month of the preceding year. Outgo, although 31.6 percent larger than a year ago, was 21.7 percent short of the ten-year average. The 6 THE MONTHLY REVIEW countryward movement of calves for each of the past five months has been larger than one year earlier, but the total for the first seven months is 12.3 percent less than for the same period last year and 1.2 percent below the 1922-31 average. Larger supplies and hot, dry weather slowed up the demand the latter part of the month. Shipments of hogs and sheep were 54.5 and 43.5 percent, respectively, smaller than a year ago and 60.1 and 46.5 percent below normal. Reports from sixty-one markets in the United States show shipments of stocker and feeder calves during July increased 18.6 and 30.4 percent, respectively, those of hogs declined 41.4 percent, and of sheep 25.6 percent as compared to July, 1931. RANGES: Cattle and sheep on western ranges are reported as making good gains and being in good flesh except in a few dry areas. Range conditions are generally above average although deteriorating somewhat in July as a result of the hot, dry weather. Wyoming ranges dropped IO, New Mexico 5, and Colorado 4 points in condition during the month. CATTLE ON FEED: The United States Department of Agriculture reported 5 percent fewer cattle on feed in the eleven corn belt states on August I this year than on the like date last year. Last year's decrease as compared to August 1, 1930, was 13 percent. States east of the Mississippi river have enlarged their feeding operations 14 percent, but those west of the river have reduced theirs 12 percent. Missouri reported the same number of cattle on feed this year as last, but Kansas and Nebraska reported reductions of 7 percent and 22 percent, respectively. Cattle feeders expressed the intention of purchasing more cattle in the next five months than in the like period last year as feed is more plentiful and prices of both livestock and feed are low. Fulfillment of intentions will depend largely upon the ability of feeders to finance their operations. THE LAMB CROP: The 1932 lamb crop for the United States is estimated as 8 percent smaller than the 1931 crop and about I percent smaller than the 1930 crop. Reductions were entirely in the western sheep states where the crop was 12 percent smaller than last year. Native sheep states reported the largest crop in eight years or I percent larger than last year. Lambs produced this year totaled 18,955,000 head for the western states, 10,762,000 in the native states, and 29,717,000 head for the country as a whole. The number of lambs saved per hundred ewes, 80.4 percent, was the smallest percentage lamb crop shown for the nine years of record and compares with 89.2 percent in 1931. Wyoming reported some contracting of feeder lambs the forepart of August for October delivery at $4 per hundredweight. Sheep numbers in the United States on January I were the largest ever reported as was the 1931 slaughter of sheep and lambs. The 1932 lamb crop of the three principal sheep producing states of this District and the United States is shown in the following, with comparisons, in thousands of head, ooo omitted: BAEEDINO EWES JAN. Number Colorado·--················-· New Mexico___ Wyoming____ 1932 1,562 2,158 3,250 1931 1,500 2,070 2,950 3 State.<1·----···········-···· United States·---········· 6,970 36,973 6,520 36,291 I LAMBS DOCK.ED Percent of Ewes Number 1932 1931 1932 1931 70 67 82 68 83 63 80.4 78 89.2 52 1,093 1,122 2,178 1,230 1,408 2,448 4,393 29,717 5,086 32,373 WOOL: Shorn wool production in the United States, as estimated by the Division of Crop and Livestock Estimates, United States Department of Agriculture, increased from 228,109,000 pounds in 1922 to 369,315,000 pounds in 1931, but declined to 342,386,000 pounds this year. Total wool production, including pulled wool, increased from 270,109,000 pounds in 1922 to 435,415,000 pounds in 1931. Short feed supplies and large death losses were accountable for the lighter clip and lighter fleeces this year. Wool production in Colorado, Wyoming, New Mexico, and the United States: SHEEP SHORN Thousands of head 1932 1931 1930 Colorado. ...• I ,6oo New Mexico 2,525 Wyoming .... 3,558 I, 736 I ,66o 2,520 3,6oo 2,343 3,264 WooL PRODUCED Thousands of lbs. 1932 11,840 16,412 31,310 1931 13,541 16,632 34,560 WEIGHT OF FLEECE Pounds 1930 1932 1931 1930 13,446 7.4 7.8 8.1 16,870 6.5 6.6 7.2 29,702 8.8 9.6 9.1 Three states 7,683 7,856 7,267 59,562 64,733 6o,018 U.S .... ·-···· 44,780 46,401 44,433 343,38b 369,315 351,521 7.8 7.6 8.2 8.o 8.3 7.9 Government estimates placed the average annual domestic consumption of wool for the years 1927 to 1931 at 467,000,000 pounds or 7.4 percent greater than the domestic production of 1931. Consumption has declined rapidly in recent months, with that for May but 37 percent of the May, 1931, total, and the smallest for any month in the fourteen years of record. In the first five months this year, consumption was equal to but two-thirds of the five-year average for the period. A sharp upturn in the demand for wool was reported by the National Cooperative Wool Marketing Corporation the forepart of August. Prices for domestic wool which in June, 1928, averaged 38.7 cents per pound, dropped to 7 cents in June this year, the lowest since 1897. At prevailing prices tariff duties confine importations to specialty wools. POULTRY AND DAIRY PRODUCTS: As egg and milk production declined during July and the forepart of August, prices of eggs and butterfat advanced. Number I butterfat at Kansas City rose 6 cents per pound from the season's low of 9 cents in mid-July. Eggs are up 4½ cents per dozen from the IO cents per dozen price paid to country shippers on July 1. Poultry prices remain steady at the lowest levels in recent years. JULY MOVEMENT OF LIVESTOCK IN THE TENTH DISTRICT Cattle Kansas City......... Omaha.. St. Joseph-------·-·······--········ Denver Oklahoma City.-. Wichita .... - .. RECEIPTS Hogs Calves 6,171 2,650 4,3 25 2,828 •216,714 212,566 80,328 46,345 24,904 43,623 102,381 157,'298 66,289 145,333 24,04'1 6,130 41,'130 42,37S 41,220 624,480 727,~6 645,867 501,473 612,599 126,125 20,240 90,853 5,016 28,100 17,770 18,034 15,978 296,86o July 193 281,232 June 193 July 1931 331,489 *Includes 115,037 hogs shipped direct to Sheep packers' yards. 5-4-2,102 STOCltEllS AND FEEDERS Hogs Cattle Calves 32,011 12,775 3,¢1 4,831 4,3 29 691 53,076 31,6:21 40,345 1,414 1,004 7,94° 4,496 5,9 2 9 1,846 803 (82 546 3,777 4,218 8,302 Sheep 11,194 32,53 2 2,903 5,7 14 52,343 29,057 92,665 PURCHASED FOR SLAUGHTER Hogs Sheep Calves Cattle 49,734 59,3°7 19,413 8,320 11,36a 7,080 155,214 171,613 186,428 •196,236 164,029 65,340 5,013 29,746 1,789 22,144 3,840 42,200 1,319, II,107 3,602 26,670 30,779 30,412 519,695 554,859 449,8o7 80,189 121,582 62,394 14,480 11,994 5,545 296,184 356,831 355.638 7 THE MONTHLY REVIEW The into-storage season for eggs is nearing its close, with present indications that peak holdings will be the smallest in sixteen years. Production of creamery butter and cheese is reported as smaller than a year ago with imports of cheese lighter and exports heavier. homa wells were shut in under executive regulatory orders. July gross production which exceeded that for June, because of the additional day, was 16.2 percent smaller than a year ago. Estimated gross production for the five states az:id the United States is shown in the following table: Meat Packing Operations at meat packing plants in this District, as measured by the number of meat animals purchased for slaughter at the six principal markets plus hogs purchased direct by packers', declined in all departments during July as compared to June. Compared to July last year, there were declines in the numbers of cattle and. sheep slaughtered of 16.7 percent and in calves 12.3 percent. More hogs were purchased for slaughter this year than last. Total purchases for each department were substantially under the July average of the past ten years. The Government report on the number of animals slaughtered under Federal meat inspection in July as compared to a year earlier, discloses declines of 13.1 percent for cattle, 8.9 percent for calves, and 7.2 percent for sheep. Inspected slaughter of swine increased 1.3 percent. Cold Storage Holdings August I United States cold storage holdings of all commodities were substantially smaller than on August 1, 1931, and show the following declines from August 1 five-year average inventories; beef, 39.4; pork, 16.2; lamb and mutton, 57.4; poultry, 24.0; miscellaneous meats, 30.3; lard, 26.5; eggs, 28.7; creamery butter, 18.8; and cheese, 22.1 percent. The seasonal out-of-storage movement of beef during August was somewhat smaller, whereas, that of pork was considerably larger than a year ago or the five-year average. Stocks of lamb anc' mutton were slightly larger for the month, whereas, they normally decline. Total holdings of poultry, which increased 3,676,000 pounds last July, declined 5,215,000 pounds this year as compared to an average decrease of 2,066,000 pounds. Holdings of turkeys remain large despite an unusually heavy out-movement for August. The out-movement of miscellaneous meats, although only equal to about one-half of last year's volume, totaled 3,091,000 pounds as compared to a five-year average out-movement of 300,000 pounds. The seasonal increase in cold storage holdings of butter, cheese, and eggs was somewhat below the five-year average, whereas, that of lard failed to materialize, stocks showing a reduction of 6.7 percent for the month as against a slight normal increase. Cold storage holdings in the United States, as reported by the United States Department of Agriculture: *Aug. I July I Aug. l Aug. I 1932 1932 1931 5-Yr.Av. Beef, lbs.·-- · · - -- - - -- 26,642 29,909 41,055 43,949 Pork, lbs ......... _ _ _ _ _ _ _ 643,213 724,271 7u,8u 767,614 Lamb and mutton, lbs....................... 1,022 1,010 1,892 i,398 Poultry, lbs, _ __ __ _ __ 31,446 36,661 36,438 41,397 •~urkeys, lbs................ _ _ _ _ _ 5,992 7/285 2,77i 5,009 Miscellaneous meats, lbs____ 51,654 54,745 69,026 74,158 Lard, lbs ..... _ _ _ _ _ __ _ 121,672 130,363 121,926 165,473 Eggs, cases_ _ _ __ _ __ 6,422 6,339 9,504 10,~81 Eggs, frozen (case equivalent).......... 2,814 2,871 3,277 2,775 Butter, creamery, lbs,.---··················· no,062 84,269 n5,121 135,477 Cheese, all varieties, lbs ... _ __ 75,944 66,531 89,264 97,542 *Subject to revision. ••Included in Poultry. (ooo omitted.) Petroleum Estimated daily average crude oil production in the five oil producing states of this District declined 0.9 percent during July and was the smallest recorded for any month since J anuary, 1924, except September and October last year when Okla- *July 1932 Barrels 12,923,000 2,988,000 1,123,000 89,000 l,II4,ooo June 1932 Barrels 12,905,000 2,736,000 1,057,000 98,000 1,066,000 July 1931 Barrels 16,207,000 2,887,000 1,234,000 134,000 1,301,000 Total, five state.. . . _ _ _ _ _ _ _ 18,237,000 Total, United State...______ 66,902,000 *Estimated, American Petroleum Institute. 17,862,000 64,835,000 21,763,000 77,961,000 Oklahom, _ _ _ _ _ _ _ _ __ Kansas .... _ _ _ _ _ _ _ __ Wyoming, _ _ _ _ _ _ _ __ Colorado,_ _ _ _ _ _ _ __ _ New Mexico,_ _ _ __ _ _ Mid-continent crude oil prices remain unchanged with quotations, on a degree gravity basis, ranging from 76 cents to f,1 per barrel. Aside from a stronger demand and higher prices for furnace oils, prices of refined products were, as a whole, steady. July field operations, as measured by the number of wells completed during the month and the number of rigs up and wells drilling at the close, although more extensive than one month or one year earlier, show marked declines as compared to July of other years. Bituminous Coal Contrary to normal tendencies, soft coal production at mines in Tenth District fields declined 7.7 per cent in July. Output was 31 percent smaller than a year ago and, with the exception of April, 1922, the smallest for any month in years. Cumulative production for the year to August I was only 13.8 percent below that for the same period last year, but 43.2 percent less than in the first seven months of 1929. Estimated soft coal production for the Tenth District and the .United States: *July 1932 Tons 187,000 128,000 193,000 63,000 6o,ooo 185,000 Colorado·--- ···· Kansas .... Missour· New Mexico Oklahom Wyoming................ *June 1932 Tons 209,000 135,000 172,000 78,000 44,000 246,000 July 1931 Tons 280,000 187,000 204,000 100,000 123,000 288,000 Total, six states 816,000 884,000 1,182,000 Total, United States·----··········· 17,830,000 17,749,000 29,790,000 *Estimated from the weekly reports of the United States Bureau of Mines. Zinc and Lead Shipments of zinc ore and lead ore from the Tri-state district during August, although establishing new low records for the present century, exceeded production. Shipments of zinc ore during the four weeks' period ended July 30 were 56.5 percent smaller than in the preceding four weeks and 54.4 percent smaller than for the like period last year. Lead ore shipments declined 58.2 percent for the month and 73.5 percent as compared to a year ago. Shipments of zinc ore and lead ore from mines in Missouri, Kansas, and Oklahoma: Zrnc Oklahom..___ _ __ Tons ◄ ,731 Kansas ...................................... Missouri ......... - - - - - 803 108 Wks. ended July 30, 1932. Wks. ended July 2, 1932. 4 Wks. ended Aug. I, 193 I. 5,642 12,957 12,36o 4 4 f, 1> ORE LEAD ORE Value 76,442 14,876 1,920 Tons 306 186 43 93,238 535 255,339 ~· 1,279 284,280 j ~ 2,018 1> 1> Value 7,844 4,740 1,089 13,673 34,973 89,II8 8 THE MONTHLY REVIEW Business ·conditions in the United States By the Federal Reserve Board ,.._ l'IO 1-.0 130 ',, ,A. 120 110 ... ,'"' INDUSTRIAL PRODUCTION uo , ~,,-- / 100 120 110 100 \ ,0 90 '\~ IO 80 '\.. 'lll ' • ,m A 192'1 70 1931 60 so 19,1 Index number of industrial production, adjusted for seasonal vanat1on. (1923-1925 average= 100.) Latest figure, July, 59. ,t CtNT I20 FACTORY EMPLOYMENT --', IIO tDO ......... ~ '° 110 100 " -, • ~ IO so ma 1'27 1m mo 193? 1931 <JO eo 70 60 so Federal Reserve Board's index of factory employment with adjustment for seasonal variation. (19:23-1925 average=100.) Latest figure, July, 58.3. PlRGCNT 120 PUtCClfT I 20 WHOLESALE PRICES 110 100 I 10 - ... I 00 - ~ .... ~ 80 '10 90 eo "- 70 ----- 60 50 1927 1928 1929 1930 1931 60 50 1932 Index of United States Bureau of Labor Statistics (1926-=100). Latest figure, July, 64.5. MIU'°"' Of OOUIIIIS llOO •rsr11111: MM.UOl'J Of oou. e 1111 11111111 CREDIT MO rllCT°"S DI CHAIIGU •soo ~s--- 4 - - - 1 - - - + -- - + - - - t -- i - .000 -2500t:_:::::::::::;::;;f' ~-4----+-~~~~~=~-i-l---+----:::::;::;;;;::::::j;::;::;:::;:;:;;>";"'1="'==";a::"'"aaii-,-="""": r,,...---jHCIO --..._ 2000 .J ,L 2000 I ,;v c::..:=:;_+---f-1/- ----j"OO ....... s- l!ClOf----,fi,.-,.~'-P,...::::=P-\---"' 100l!P"""_/=-+iV'" - - - - t - - t -r-..._ '_ _.J'-f';a,- -- j - - - - j1000 s~.......,,_=-..____,,,=,aa----'-- 1=n.a, ~...,,,9"": lo,--,...--=1=9J1a----'--... .. l..---1 5t0 Monthly averages of · daily figures. Latest figures are averages .of, first 21· days ih August. •• Volume of industrial output declined seasonally from June to July while factory employment and payrolls .decreased by more than the usual seasonal amount. In July the general level of wholesale prices was about one .percent higher than in June, and in the first half of August prices of many leading commodities advanced considerably. Reserve bank credit declined somewhat in the four weeks ending August 17, reflecting chiefly a substantial growth in the country's stock of monetary gold. PRODUCTION AND EMPLOYMENT: Industrial production declined by about the usual seasonal amount in July and the Board's index, which is adjusted to allow for the usual seasonal variations, remained unchanged at 59 percent of the 1923-1925 average. Activity decreased seasonally in the steel industry; by slightly more than the usual seasonal amount in the lumber, cement, newsprint, and meat packing industries; and by substantially more than the seasonal amount in the automobile and lead industries. Output of shoes, which ordinarily increases in July, declined. At woolen mills activity increased by a substantial amount and at silk mills there was a seasonal increase in production. Activity at cotton mills decreased, as is usual in July, while sales of cotton cloth by manufacturers increased considerably. Output of coal increased from the low level prevailing in June. · Reports · on the volume of factory employment and payrolls showed substantial declines from the middle of June to the -middle of July. In· the machinery, women's clothing and hosiery industries, and at railroad repair shops, the number employed decreased by considerably more than the usual seasonal amount and at shoe factories the increase reported was smaller than usual. In the woolen goods industry a substantial increase in employment was reported. Value of building contracts awarded, as reported by the F. W. Dodge Corporation, continued at a low level during July and the first half of August. Prospects for many leading crops, including corn, spring wheat, potatoes, and tobacco, were reduced somewhat during July, according to the Department of Agriculture. The estimated total wheat crop, based on August 1 conditions, is 723,000,000 bushels, a decrease of about 175,000,000 bushels from last year's large crop, reflecting a reduction of 350,000,000 bushels in the winter wheat crop, offset in part by an estimated increase of 175,000,000 bushels in the spring wheat crop. The first official cotton estimate as of August 1, was u,300,000 bales, as compared with crops of 17,100,000 bales last season, and 13,900,000 bales the year before. The indicated production of corn is 2,820,000,000 bushels, substantially larger than the crops of the last two seasons and slightly larger than the five-year average. DISTRIBUTIO : Volume of freight traffic decreased somewhat from June to July, and value of department store sales was substantially reduced. WHOLESALE PRICES: The general level of wholesale prices, as measured by the monthly index of the Bureau of Labor Statistics advanced from 63.9 percent of the 1926 average in June to 64.5 percent in July. Between the middle of July and the third week of August prices of livestock and meats which had previously advanced considerably, declined somewhat, while price increases were reported for many other leading ·commodities, including wheat, textile raw materials and finished products, nonferrous metals, hides, sugar, coffee, and rubber. BANK CREDIT: The total volume of reserve bank credit outstanding, which had in.creased by 1,650,000,000 between the end of March and the third week of July, declined by $95,000,000 in the four weeks to August 17, and in the same period member banks increased their reserve balances by '/,45,000,000. These changes reflected chiefly the addition of $95,000,000 to the country's stock of monetary gold and an inflow to the banks of- '/,30,000,000 in currency. Total loans and investments of reporting member banks in leading cities were '/,250,000,000 larger on August IT than four weeks earlier. Total loans of these banks continued to decline throughout the period, while their investments increased substantially, reflecting an increase in holdings of United States Government securities in connection with treasury financing operations. Time deposits increased by '/,95,000,000 and net demand d_eposits by '/,85,000,000. Money rates in the open market remained at low levels. , Successive reductions brought the prevailing rates on prime commercial paper to a range. of. 2-2¼ percent, in the firs,~·part:of August. : ·
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