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THE MONTHLY REVIEW Qf Agricultural, Industrial, Trade and Financial Conditions in the Tenth Federal Reserve District FEDERAL Vol. 20 RESERVE KANSAS CITY, BANK Mo., C ROP prospects in the Tenth District have undergone a radical change in the past four weeks, the hot, dry weather being unfavorable for most crops. Corn has been injured extensively and in some sections irreparably since August I. Late hay crops, grain sorghums, vegetables, and other field crops have made very little growth. Fall plowing has been delayed and stock water supplies are running low in some areas. Good, general rains and cooler temperatures are needed immediately for the unmatured crops. Harvesting and threshing of spring grains are almost completed, and, with the exception of winter wheat, yields are heavier than a year ago and generally satisfactory. Early hay crops were good and stockmen are assured of sufficient hay and roughage for their winter needs. Irrigated crops are mostly good to excellent with ample water available for the remainder of the season. July trade reports were, on the whole, the most favorable in several years, the dollar volume of trade at thirty-two department stores in the District being the largest for the month since 1932, and of wholesale trade, five representative lines combined, since 1931. Sales of the former showed a gain of 17.5 per cent and the latter a gain of 16.2 per cent over July, 1934. Department store trade declined somewhat less than usual from June to July, and wholesale trade, experiencing the first improvement for the season in six years, increased 6.4 per cent. Retail lumber sales were substantially larger in July than in either June this year or July last year. Residential construction registered impressive gains but other types of building activity declined. Business failures continued small both in number and in the amount of liabilities involved. Marketings of all species of live stock and all classes of grain but corn were larger for the month but smaller than a year ago. Wheat prices advanced in response to crop uncertainties, corn was steady, but other grains worked lower. Most live stock values were steady to slightly lower, except hogs, which advanced sharply to a new six-year top of $12.00 per hundredweight in mid-August. The Department of Agriculture's index of farm prices dropped 2 points to 102 per cent of pre-war and the ratio of prices received to prices paid was down 1 point to 81 per cent of the 1909-1914 average. Moderate gains in the production of flour and crude oil and substantial increases in shipments of zinc ore and lead ore for the month and the year were recorded. Coal production, off 22.2 per cent as compared to June, exceeded the July, 1934, tonnage. OF SEPTEMBER 1, KANSAS CITY 1935 No. 9 BUSINESS IN THE TENTH FEDERAL RESERVE DISTRICT Percentages of Increase, or Decrease (-), for July 1935 over June 1935 and J uly 1934 and for the first seven months of 1935 over the like period in 1934 July 1935 7 Months 1935 compared to compared to Banking June 1935 July 1934 7 Months 1934 Payments by check, 29 cities.................. - 2.5 I.o 9.2 Federal Reserve Bank clearings.............. 8.2 7.7 10.3 Business failures, number........................ --?.7.1 - 5.4 - 5.9 Business failures, liabilities...................... 144.0 9.8 -36.7 Loans, 51 member banks ..·-····················· 5.1 - 6.3 Investments, 51 member banks.............. - x.6 12.9 Net demand deposits, 51 member banks - 2.9 21.1 Time deposits, 51 member banks..·-······· 0.3 - 5.0 Savings deposits, 45 selected banks·-····· 0.2 9.2 Savings accounts, 45 selected banks...... 0.5 2.9 Distribution 16.?. Wholesalers' sales, 5 lines combined ...... - 2.3 6.4 6.o 1 7•5 Retailers' sales, 32 department stores... . -18.5 1 9·5 80.5 L~m?er sales, 15 5. retail yards............... . 38.5 - 8.9 - 5.0 Life msurance, wr1 tten·--························· -1.7 Construction Building contracts awarded, value..·---· - 39.4 Residential contracts awarded, value.... 34.1 Building permits in 17 cities, value........ 93.8 Production 6.o Flour.-......................................................... 3.4 4.2 4.2 I.8 3.9 Crude petroleum·-····································· 18.1 Soft coal...................................................... -22.2 4.7 13.4 Zinc ore (shipped) Tri-State district...... 47.3 8.7 Lead ore (shipped) Tri-State district.... 501.5 - 5.0 Cement ...................................................... --?.2.6 Grain receipts, 5 markets -12.8 Wheat·--····················································· 535.6 -22.1 -80.8 Corn ............................................................ -57.o -14.8 1 31.7 1.7 Oats·---······················································· Live stock receipts, 6 markets -'15.7 Cattl,.......................................................... . 25. 1 -59.9 -19.0 40.4 21.7 Calves·-······················································· 6.1 -69.8 -57. 2 Hogs ........................................................... . Sheep .................. ....................................... . - 9.6 - 5.3 7.4 12.6 Horses and mules .. ..........:........................ . - 3.2 37.5 Meat packing, 6 markets -3o.9 -51.2 Cattle......................................................... . 26.4 2 7•5 -23.4 -67.0 Calves·-······················································· -58.7 Hogs ........................................................... . - 3.4 -71.7 - 4.6 Sheep .......................................................... 0.9 4.3 Member Bank Operations According to their weekly condition statements, loans and discounts of fifty-one selected member banks in leading cities of the District expanded '$9,740,000 during the five weeks' period ended August 14 to a new high for the year of $202,031,000. The increase was in commercial loans, up $10,069,000 for the period, as loans secured by stocks and bonds were off slightly. These banks again reduced their holdings of United States Government securities, the reduction in five weeks This Copy Released For Publication In Morning Newspapers, August 30. '.2 THE MONTHLY REVIEW amounting to '$5,295,000, carrying total holdings as of August 14 to $226,146,000 which was '$4,276,000 below the total of August I 5, 1934. Total investments of the reporting banks are now 12.9 per cent larger than a year ago, due principally to large holdings of obligations fully guaranteed by the United States Government both as to principal and interest. Net demand deposits declined 1,15,842,000 in five weeks from their all-time peak of July 10, bringing the total to $534,079,000 on August 14 this year as compared to $-1-40,946,000 on August l 5 last year. Time deposits, up slightly in five weeks, are 5 per cent under a year ago. The principal resource and liability items as shown by the weekly condition statements of the fifty-one reporting member banks for the three dates of comparison: Loans and investments-totaL Loans and discounts-total ·--· Secured by stocks and bonds All other loans and discounts lnvestments- tota U. S. securities direcL-·······Obligations fully guaranteed by the U. S. Government_ Other securities·- ··············-··Reserve with F. R. bank__ .._ Net demand deposi Ti me deposits .... -. Government deposits...·-····-··- Aug. 14, 1935 1>59 1,7 25,000 202,031,000 46,087,000 155,944,000 389,694,000 226,146,000 43,75°,000 119,798,000 100,868,000 534,079,000 I 57,032,000 10,997,000 July 10, 1935 Aug. 15, 1934 f, 588,21 I ,000 t, 56o, 752,000 192,291,000 215,606,000 46,416,000 58,305,000 145,875,000 157,301,000 345,146,000 395,9 20 ,000 231,441,000 230,422,000 44,799,000 9,680,000 n5,475,ooo 549,921,000 I 56,57 I ,ooo 7,478,000 I I II4,724,ooo 92,293,000 440,946,000 165,298,000 23,013,000 Federal Reserve Bank Operations A decline of 1,15,465,973 in member banks' reserve deposits from the total of July 10, the second highest of record, and an increase of $3,137,105 in Federal reserve note circulation, with the total as of August 14 the highest for any weekly reporting date since March 29, 1933, were the outstanding changes reflected by the weekly condition statements of the Federal Reserve Bank of Kansas City and branches during the five weeks' period ended August 14. Member bank borrowings increased by 1,62,670 to the insignificant total of 1,127,213 but holdings of bills purchased in the open market and industrial advances were relatively unchanged. Holdings of United States Government securities, virtually stationary since March 6, accounted for 1,106,844,200 of the total of $108,256,925 of bills and securities held on August 14. Compared to August 15, 1934, bills discounted for member banks and bills purchased in the open market were down somewhat, whereas all other items recorded gains, member banks' reserve deposits increasing 14.2 pa cent, Federal reserve note circulation 12.3 per cent, United States securities holdings 14.7 per cent, and total resources 13.4 per cent. Weekly condition statements as of the three dates indicate the changes in the principal items in five weeks and fifty-two weeks: Aug. 14, 1935 July 10, 1935 Aug. I 5, 1934 Total reserves.... _ _ _ _ _ t,203,315,649 t,212,970,281 f,180,867,700 Bills discounteu..._____ 127,213 64,543 155,421 Bills purchased .... _ _ _ _ _ 126,566 126,615 142,276 Industrial advances .... _.............. 1,158,946 1,16o,227 3,200 U. S. securities ...·--·····-·-·········· 106,844,200 107,044,200 93,144,200 Total bills and securities--··-···· 108,256,925 108,395,585 93,445,097 Total resources.. _ _ _ _ _ 349,168,518 356,686,615 307,953,908 F. R. notes in circulation.......... 125,733,775 122,596,670 III,921,110 M ember banks' reserve deposits 175,317,379 190,783,352 153,527,907 The discount rate of the Federal Reserve Bank of Kansas City, on all classes of paper and maturities, remains unchanged at 2 per cent. Federal Reserve Bank Clearings Check collections through the Federal Reserve Bank of Kansas City and branches at Omaha, Denver, and Oklahoma City were 8.2 per cent larger, both as to the number of items handled and as to amount, in July than in June. Collections were also larger than a year ago, the number of items handled increasing I 5 per cent and the dollar volume showing a gain of 7.7 per cent. Check collections through this bank and branches: July June...·--·········· Seven months .. ITEMS 1935 1934 4,756,091 5,467,895 4,808,092 5,054,843 36,553,236 35,850,526 AMOUNT t, 1 935 902,039,000 833,638,000 5,732,701,000 1934 f, 837,174,000 757,828,000 5,197,583,000 Bank Debits Clearing houses in twenty-nine cities of the Tenth District reported debits by banks to individual accounts during the four weeks' period ended July 31 amounted to 1,918,458,000. This total represents a decreac;e of 1,23,186,000, or 2.5 per cent, from that of the preceding four weeks and an increase of $8,888,ooo, or I per cent, over the like period in 1934. The gain over the corresponding period of the preceding year is the smallest reported since last July, twelve of the twenty-nine cities recording losses. PAYMENTS BY CHECK FouR WEEKS ENDED July 31, 1935 Aug. I, 1934 9,427,000 1, 8,230,000 Albuquerque, N. M.·---··-··- ····· J Atchison, Kans. _ _ _ __ 3,3 13,000 3,335,000 21,081,000 23,265,000 Bartlesville, Okla.·--·····-··-········ Casper, Wyo. _ _ _ __ 4,104,000 3,862,000 Cheyenne, Wyo ........................... 6,773,000 6,278,000 10,996,000 n,121,000 Colorado Springs, Colo.·-··········· Denver, Colo ............................... 122,174,000 109,749,000 Enid, Okla ................................... 14,035,000 13,712,000 2,013,000 2,274,000 Fremont, Nebr.·-························· Grand Junction, Colo ................. 2,088,000 1,556,000 Guthrie, Okla ....................... •·-···· 1,560,000 1,246,000 Hutchinson, Kans ............_........ . 16,606,000 17,727,000 2,162,000 4,401,000 Independence, Kans ..· - ····-········ 7,130,000 6,658,000 Joplin, Mo ....·-······-··········-········ 10,543,000 10,235,000 Kansas City, Kans ....·-············Kansas City, Mo ...........•............. 252,564,000 271,963,000 Lawrence, Kans. _ _ __ 2,783,000 2,940,000 Lincoln, Nebr. _ _ __ 22,828,000 22,022,000 6,081,000 6,453,000 Muskogee, Okla....... ·- ··- -···-···· Oklahoma City, Okla. ____........ 66,288,000 75,218,000 Okmulgee, Okla. _ _ __ 2,290,000 2,416,000 Omaha, Nebr, .. _ _ __ n8,478,ooo 122,7o6,ooo Pittsburg, Kans. _ _ __ 2,836,000 2,745,000 Pueblo, Colo. _ _ __ 11,370,000 II,748,000 9,229,000 Salina, Kans~--·····-···-·····~ 7,9 25,000 22,816,000 27,301,000 St. Joseph, Mo.·-··················-···15,796,000 15,342,000 Topeka, Kans.·--·······················Tulsa, Okla .. _ . _ _ _ _ __ 95,011,000 87,877,000 Wichita, Kans ............................. 46,781,000 38,567,000 Total 29 Total 29 U. S. 270 U. S. 270 cities, 4 weeks __ ...... f, 918,458,000 cities, 30 weeks .. _ ...... 6,664,353,000 cities, 4 weeks.......... 30,507,113,000 cities, 30 weeks--······ 228,427,644,000 t, Per cent Change I4.5 -0.7 - 9.4 3.7 7.9 - I.I IX.3 2.4 -n.5 34.2 25.2 - 6.3 -5o.9 7.1 3.0 - 7.1 - 5.3 3.7 6.I 1 3·5 - 5.2 - 3.4 3.3 - 3.2 16.5 -16.4 3.0 8.1 21.3 9°9,57°,000 6, I 04,602,000 27,989,520,000 212,276,743,000 Savings Slight increases in the number of savings accounts and the amount of savings deposits during July were disclosed by the reports of forty-five selected banks in leading cities of the District. On August I savings deposits in these banks were 9.2 per cent larger and the number of depositors 2.9 per cent larger than on August 1, I 934. Savings accounts and savings deposits, as reported by the forty-five banks as of August 1, with comparisons: August 1, 1935······-····- - -- July 1, 1935 _ __ __ _ _ __ August 1, 1934........ - - - - - - Savings Accounts 405,000 402,987 393,715 Savings Deposits t,1 24,586,739 124,3z2,714 II4,III,759 J RETAIL TRADE AT 32 DEPARTMENT STORES IN THE TENTH FEDERAL RESERVE DISTRICT SALES STOCKS (RETAIL) AccoUNTS RECEIVABLE AMOUNTS COLLECTED Stores STOCK. TURNOVER Year 1935 July 1935 July 31, 1935 July 3 1, 1935 July 1935 Report- compared to compared to Year compared to compared to compared to July ing 1 1 1 Year 1934 July 1934 J une30,1935 July31,1934 935 934 935 1934 June 30, 1935 July 31, 1934 June 1935 July 1934 Kansas City........ 4 -12.I 13·4 31.6 - 2.0 .25 9.6 10.7 -'23.7 .15 1·95 1.46 - 7.9 Denver.............. __ 4 2.01 20.0 8.I 12.4 -10.5 .27 .24 1.91 0.5 9.1 6.5 - 4.7 Oklahoma City._. 3 - 0.2 - 2.6 - 2.0 14.7 .30 .25 2.37 2·35 - 0.7 -4.5 - 8.7 - 7.1 Tulsa .................... 3 23·4 13·9 - I,2 16.7 - 1.6 .32 .27 2.42 2.34 3.0 - 7.1 - 5.2 ,20 Wichita ................ 3 .18 1.88 1.77 -IO.I 10.0 16.9 7.1 13.4 - 9.8 -5-5 5.3 ,21 Other cities.... ...._ 15 .18 I.66 1.65 I 1.6 2.0 -13.1 - 0.I 4.0 I4.7 - 6.4 - 4.1 - 9.0 7.3 Total. ___ ············· 32 17.5 6.o - 7.1 - 7.1 .25 .20 1.96 I.78 NOTE: Percentage of collections in July on open accounts June 30, all stores reporting 43.3. Collections same month last year 40.5. Failures The July record of business failures in the Tenth District and the United States, as reported by Dun and Bradstreet, Incorporated, marked a continuation of the favorable showing recorded for recent months, defaults, both in number and amount of liabilities involved, establishing or approximating sixteen-year lows. The July and seven months' record of defaults and the amount of indebtedness involved with comparisons: TENTH DISTRICT Number Liabilities July 1935-·•··-······················ 35 $ 527,538 June I935·--·············-·········· 48 216,195 July I 934.............................. 37 480,641 Seven months 1935·--········· 273 2,583,195 Seven months I934·--········· 290 4,080,385 UNITED STATES Number Liabilities 931 $ 20,446,761 961 20,463,097 912 19,325,517 7,199 130,727,6o2 7,489 171,u9,277 Trade RETAIL: Sales of merchandise at thirty-two department stores located in cities throughout the Tenth District decreased 18.5 per cent in dollar volume in July from the preceding month, or somewhat less than the usual seasonal amount. July sales were, however, 17.5 per cent larger than for July, 1934, and about 26 per cent higher than in 1933. The improvement over a year ago was the best reported so far this year and was general, all cities reporting substantial gains. High temperatures, a belated movement of summer merchandise, and more favorable crop prospects than existed a year ago encouraged trade. Collections, unchanged from June to July, averaged 43.3 per cent of amounts receivable at the close of the previous month on open accounts and 14.8 per cent on installment accounts. The collection percentage for July, 1934, on open accounts was 40.5 per cent and on installment accounts 14.1 per cent of amounts outstanding. Merchandise stocks as of July 31, 1935, were 7.1 per cent smaller than either one month or one year earlier, the index for the District being down to 55.8 per cent of the 1925 monthly average and is now lower than at any time in recent years. The Bureau of Foreign and Domestic Commerce reported July sales of general merchandise in small towns and rural areas throughout the United States were 28.5 per cent higher than for July, 1934, and 36 per cent above July, 1933. Chain grocery store sales, on a daily average dollar volume basis, Stores Reporting Dry goods.. _ _ _ _ 5 Groceries ...·-····-··········Hardwar Furnitur,;._._ _ __ Drug..___ _ _ __ 4 8 4 7 I,2 12.2 were about 4 per cent better than a year ago and 3 per cent better than two years ago. For the first seven months of the year general merchandise sales increased 23. 5 per cent and grocery chain store sales increased 4 per cent over sales for the corresponding period of 1934. WHOLESALE: Trade at Tenth District wholesale establishments in July was the best for the month since 1931, the dollar volume of sales of five representative lines combined increasing 6.4 per cent as compared to June and 16.2 per cent as compared to July, 1934. Not since 1929 have July sales exceeded those of June, substantial gains in sales of dry goods, groceries, and drugs offsetting seasonal declines in sales of hardware and furniture. All lines shared in the improvement over a year ago, sales of dry goods increasing 0.3 per cent, groceries 6.4, hardware 33.1, furniture 50.5, and drugs I 5.9 per cent. Comparisons of the first seven months this year with the like period last year show sales of dry goods and hardware declined 13.6 and 2.3 per cent, respectively, whereas those of groceries, furniture, and drugs increased by 1.1, 11.4-, and o. 1 per cent. Inventories of groceries, furniture, and drugs as of July 31, 1935, were larger and of hardware smaller than one month or one year earlier. Wholesalers of dry goods increased their stocks 12.4 per cent between June 30 and July 31 but inventories as of the latter date were 7.7 per cent lighter than on July 31, 1934. Lumber Reports of 155 retail lumber yards, located in c1t1es and towns throughout the District, show sales of lumber in board feet and of all materials in dollars in July were substantially larger than in either the preceding month or the same month last year. Lumber stocks were slightly larger on July 31 than on June 30 this year or July 31, 1934. Collections improved in July, averaging 43.9 per cent of amounts receivable June 30 as compared to collection percentages of 34.9 per cent for June and 35.3 per cent for July, 1934-. A summary of the reports follows: Sales of !um her, board feet .............................. _ Sales of all materials, dollars .............. -····-····Stocks of lumber, board fee~--Outstandings, end of month.·-·······-···-··-······- WHOLESALE TRADE IN THE TENTH FEDERAL RESERVE DISTRICT OuTSTANDrnos AMOUNTS COLLECTED SALES July 31, 1935 compared to July 1935 compared to July 1935 compared to June 1935 July 1934 June 1935 July 1934 June 30, 1935 July 31, 1934 5.1 - 8.2 5.1 3.0 17.5 0.3 0.4 6.4 13.5 8.o 16.5 6.4 -14.2 -14.6 10.3 8.7 - 1.6 33.1 -10.6 8.o -34.:l 5o.5 - 9·4 47.1 13.-4 18.0 2.3 4.6 13.:2 15.9 July 1935 compared to June 1935 July 1934 38.5 80.5 I4.5 55-4 I.8 0.7 3.5 22.6 STOCICS July 31, 1935 compared to June 30, 1935 July 31, 1934 12.4 - 7.7 4.5 13.5 - 0.4 - 9.8 5.9 0.I 3.1 1'1..0 THE MONTHLY REVIEW 4 Building A revival in residential building with July expenditures in the District for that type of construction exceeding any previous month since August, 1931, or any July since 1930, and expenditures throughout the United States establishing a new monthly record since October, 1931, is evidenced by the reports of the F. W. Dodge Corporation. The stimulated activity is attributable in part to the availability of long-time amortized mortgages bearing favorable interest rates with mortgagees partially insured against loss by the United States Government. Increased employment and a reversal of the "doubling up" process have reduced vacancy percentages in most communities. Other types of construction, however, fell off sharply in July and total building expenditures in the Tenth District declined 39.4 per cent as compared to June but were 18.3 per cent larger than a year ago. Total awards in the United States were the largest since March, 1934, 33 per cent above a year ago, and the largest for the month in four years. The F. W. Dodge report of total and residential contracts awarded in the District and the United States: TOTAL BUILDING CONTRACTS AWARDED TE NTH DISTRICT UNITED 1934 1935 1935 '/, 4,372/2 38 '/, 3,695,353 '/,I 59, 249,900 July·-············· 7,209,225 3,854,836 148,005,200 June ...·-········ Seven months 40,977,652 38,138,428 856,159,200 RESIDENTIAL CONTRACTS AWARDED TENTH DISTRICT UNITED 1935 1934 1935 JulY·-············· '/, 2,138,III · 1, 445,969 '/, 48,371,800 June.............. 1,594,985 529,486 49,832,600 Seven months 9,431,540 5,577,420 256,621,100 STATES 1934 '/,II9,698,800 127,131,200 975,309,300 STATES 1934 '/, 19,879,100 26,580,200 151,783,300 Reports from seventeen Tenth District cities disclose expenditures for new buildings, alterations, and repairs, for which permits were issued during the month of July, exceeded all prior months beginning with August, 1931. These cities issued fewer permits in July than in the preceding month but the July total of permits issued and estimated construction costs were the highest for the month in five years. BUILDING PERMITS IN TENTH DISTRICT CITIES PERMITS EsTIMATE D CosT 1934 1 935 1 935 1934 66 30 $ 91,976 $ 44,604 Albuquerque, N. M.·--··············· Cheyenne, Wyo ........................... 28 42 46,310 7,645 Colorado Springs, Colo..-........... 16 31,470 52 415,479 237 Denver, Colo ............................... 420,214 204,602 347 18 IO Joplin, Mo ................................... 18,250 4,600 Kansas City, Kans ..................... 36 1,704,238 63,625 35 220 Kansas City, Mo ......................... 231 609,400 285,500 Lincoln, Nebr............................... 123,347 259,262 143 79 Oklahoma City, Okla................. 86 263,010 228,806 154 Omaha, Nebr............................._ II8 84 137,352 65,47o Pueblo, Colo................................. 10,294 49, 231 37 39 Salina, Kans 14 7,510 4,74o 9 IO Shawnee, Okla ............................. 10,269 9,3 25 9 IO 22,360 6,680 27 St. Joseph, Mo.·-························· u6,700 Topeka, Kans.·--····· 25 20,350 55 Tulsa, Okla .. _............................... 107 171,986 56 46,167 Wichita, Kans ............................. 190 n9,576 67,765 54 Total 17 cities, July.................... Seven months .............................. 1,647 9,781 1,027 7,131 1, 4,039,233 13,4o8,953 $ 1,648,880 7,98i,o49 Life Insurance According to reports to the Life Insurance Sales Research Bureau, the amount of new paid-for life insurance written in the seven states of the District totaled i34,226,ooo for the month of July, '$587,000 less than in June and $1,816,000, or 5 per cent, less than in July, 1934. Sales in Kansas, New Mexico, and Wyoming exceeded the totals for June this year or July last year but sales in Colorado, Missouri, and Oklahoma were less than in either of the two periods of comparison. Nebraska reported a slight increase for the month and a decrease for the year. Sales of new paid-for ordinary life insurance, by states, as reported by companies representing 90 per cent of the total legal reserve life insurance outstanding in the United States on January 1, 1934: July 1935 4,274,ooo Colorado.--··································· Kansas ......................................... . Missouri ....................................... . Nebraska ...................................... New Mexico..·---························· Oklahom....__ __ Wyoming ..................................... . '/, Seven states·-······························· United States ... _.......................... . 1, 34,226,000 483,491,000 June 1935 4,384,000 4,686,000 14,641,000 4,048,000 637,000 5,627,000 790,000 '/, 5,55°,000 13,929,000 4,029,000 691,000 4,841,000 912,000 '/, July 1934 4,381,000 5,062,000 16,244,000 4,028,000 648,000 4,990,000 689,000 1, 34,813,000 f, 36,042,000 490,268,000 498,o97,ooo Flour Milling A steady volume of well scattered small orders for immediate shipment enabled flour mills in the Tenth District to operate at 56.5 per cent of full-time capacity in July as compared to 58.6 per cent in June and 55.9 per cent in July last year. Production, as estimated from the weekly reports of southwestern mills to the Northwestern Miller, totaled 1,829,391 barrels, 73,330 barrels more than in June and 103,550 barrels more than in July, 1934. The estimated production figures for the principal milling centers are shown in the following table: Atchison ................................................... . Kansas CitY·-··········································· Salina....................................................... . \Vichi ta.-.................................................. . Outside..................................................... . July 1935 Barrels 104,855 48 7,748 138,271 171,5II 927,006 June 1935 Barrels IIl,006 488,360 138,076 154,618 864,001 July 1934 Barrels 93,057 461,II4 l 5o,797 109,473 911,400 TotaL....................................................... 1,829,391 1,756,061 1,725,841 *United States·--····································· 4,818,990 4,773,545 4,780,134 *Represents about 60 per cent of the total output in the United States. Buyers were indifferent to adverse crop reports until flour prices had advanced almost $1 per barrel; then, having "missed the boat," continued a determined waiting policy for a break in the market before making commitments. As a consequence, sales in the southwest during July were mostly of small lots for immediate shipment. Seldom have these mills booked less flour during the initial month of the new crop season, and quick shipment orders comprised an unusually large percentage of the new business. Shipping directions were good considering the small amount of flour on mill books. A rising wheat market, higher premiums, and lower millfeed prices necessitated the steady advance in flour prices. The demand for millfeeds was poor at the opening of the month but improved as prices weakened, with shorts in better favor than bran. Production was light. Grain I\1arketing A lagging movement of new crop wheat to market, attributable in part to the lateness of harvest and to the tendency of producers to hold their grain for better prices, carried receipts for the initial month of the new crop year at five Tenth District markets to the lowest volume, with one exception, 1933, in ten years. The movement, although seasonally the heaviest for any month since last July, was 12.8 per cent smaller than a year ago and 53 per cent below the ten-year average for the month. Oats were also in light supply, receipts establishing a low record for the month despite a fairly good crop. 5 THE MONTHLY REVIEW The demand for corn was adversely affected by improved pastures and a shortage of live stock on feed, and offerings at the five markets were the lightest for any month since July, 1932, and 69 per cent below normal. Iowa continued to furnish the bulk of arrivals. Marketings of rye, barley, and kafir were substantially below a year ago and the ten-year average. Receipts of grain at the five markets during July with comparisons: Hutchinson .... .. Kansas City·--· Omaha_............ St. Joseph._ __ ··· \Vichi ta·--········· Wheat Bushels 4,301,100 n,057,6oo 3,444,183 1,289,600 5, 253,000 July 1935 .......... June 1935---····· July 1934 .......... 7 Mos. 1935...... 7 Mos. 1934·--· 25,345,483 3,987,563 29,080,550 43,684,189 75,891,850 Corn Bushels 1,250 880,500 252,000 108,000 5,200 Oats Bushels Rye Bushels Barley Bushels 100,000 90,000 320,000 9,000 24,000 9,6oo 3,200 1,246,950 519,000 2 ,899,6oo 224,000 6,491,250 609,000 16,432,010 3,498,100 21,082,700 3,438,000 29,6oo 9,000 68,200 122,400 313,000 5,6oo Kafir Bushels 9,100 77,000 1,500 1,300 - - - --- - -- - - - 12,800 88,900 9,300 70,6oo 38,550 u6,100 93,450 446,500 314,100 1,097,200 Disappointing threshing returns for winter wheat and the extension of rust damage in the spring wheat areas stimulated both cash and speculative d.e mand and prices advanced sharply during July, with mills and elevators good buyers. Quality being inferior to that of recent years, test weights running light, and protein content low, premium margins widened. Prices of all other grains but corn, which was steady to strong, broke sharply, oats, rye, barley, and kafir closing well under a year ago. Cash grain prices at Kansas City as of the dates indicated: No. No. o. No. o. No. l 2 2 2 2 2 dark wheat, bu ..... mixed corn, bu..... white oats, bu....... rye, bu................... barley, bu ...·---····· kafir, cwt............... Aug. 15 July 31 June 29 Aug. 15 July 31 July 31 1935 1933 1934 1935 1935 1934 '/, .97½ '/,1.03 t, .88½ $1.03 $1.02 '/, .86¼ .81½ .86½ .84½ .76½ .70¼ .43½ .29½ .34½ .41,½ .50½ .47,½ .32 .49 .51 .59 .94 .84,¼ .67 .47 .49 .54 .82 .68 .44 1.08 1.30 1.80 1.68 1.39 1.08 STOCKS OF WHEAT: Stocks of old wheat in interior mills, elevators, and warehouses on July 1, 1935, were estimated by the United States Department of Agriculture at 31,464,000 bushels this year, 48,150,000 bushels last year, and 38,565,000 bushels as the average for the years 1928 to 1932. Total carryover in all positions as of July 1 is placed at 154,041,000 bushels in 1935 against 291,989,000 bushels in 1934 and 399,862,000 bushels in 1933. Stocksofwheat,inallpositionsonJuly 1, the past three years: On farms .·-·································· Country mills and elevators ..... . Terminal mills and elevators .... Visible supply............................. . Total carryover·-························· July 1, 1935 41,926,000 31,464,000 58,700,000 'l.1,951,000 July 1, 1934 6o,323,ooo 48,150,000 102,968,000 80,548,000 July 1, 1933 82,77z,ooo 61,524,000 131,854,000 123,712,000 154,041,000 291,989,000 399,862,000 Crops On the basis of August I estimates of the United States Department of Agriculture, this District will produce in 1935 slightly less wheat but approximately six times the rye, five times the corn and dry beans, four times the grain sorghums, three times the oats, spring wheat, barley, and broomcorn, twice the hay and white potatoes, and considerably larger quantities of all other crops than during the extremely poor crop year of 1934. Compared to the five-year, 1928 to 1932, average, however, the District will produce less than half the usual amount of wheat and tw0-thirds the usual amount of corn. Above normal yields of oats, rye, tame and wild hay, dry beans, grain sorghums, broomcorn, apples, peaches, and pears are in prospect, whereas somewhat below normal yields of barley, flaxseed, white potatoes, sweet potatoes, sugar beets, and tobacco are forecast. Production of principal crops in the Tenth District and the United States, as forecast by the Department of Agriculture, is herewith compared to the final yields for 1934. (Production in thousands of uni ts, ooo omi tted J: TENTH DISTRI CT U · 1TEO STATES Forecast Production Forecast Production Aug. 1, 1935 1934 Aug. 1, 1935 1934 Winter wheat, bu ..-............. 136,229 140,671 431,709 405,552 Spring wheat, bu. ................ 10,619 3,542 175,969 91,377 All wheat, bu....................... 146,848 144,213 607,678 496,929 Corn, bu............................... 312,980 53,194 2,272,147 1,377,126 Oats, bu.·--··························· 158,980 50,782 1,187,000 525,889 Tame hay, tons·-················· 9,173 4,994 75,212 52,269 White potatoes, bu............. 33,490 14,816 376,957 385,421 Cotton, bales._..................... 686 263 II,798 9,636 Tobacco, lbs. ........................ 3,167 2,1 72 1,z21,630 1,045,66o *Grain sorghums, bu.·-······· 56,535 13,988 147,5zo 34,542 *Broomcorn, tons................ 45 16 67 31 *Sugar beets, short tons... -. 3,031 z,549 8,885 7,481 *Dry beans, 1oolb. bags.... 3,067 663 13,631 10,369 *Apples, bu.·--····················· 9,075 5,496 169,403 l'lo,670 *Peaches, bu ..-..................... 3,866 2,558 52,196 45,665 *Pears, bu............................. 1,316 990 21,212 23,490 *Grapes, tons..·--················· 21 I5 2,288 1,931 *Totals for the seven states whose areas or parts thereof comprise the Tenth District. Winter wheat estimates were revised downward from July to August I as disappointing threshing returns disclosed the fuller effects of black stem rust and wet weather damage. Quality varied widely, most fields testing poorly and much of the grain being shriveled. Production for the District, the lowest since 1917, is now estimated at 136,229,000 bushels, 16,535,000 less than on July I and 4,442,000 less than the amount harvested last year. Commercially the wheat crop in southwestern Kansas was a failure but light yields were harvested for seed. Indicated production of all wheat in the United States this year is 6o7,678,ooo bushels which is somewhat below normal domestic requirements. Black rust reduced spring wheat prospects 59,682,000 bushels to a forecast of 175,969,000 bushels and winter wheat prospects declined 26,382,000 bushels, ultimate returns being placed at 431,709,000 bushels. Corn prospects for the District were unchanged from July 1 to August 1, losses in Missouri, Kansas, Colorado, and New Mexico being offset by gains in ebraska and Oklahoma. Tenth District production is estimated at 312,980,000 bushels this year as against only 53,194,000 bushels harvested last year. Since August 1, however, the crop has deteriorated badly as a result of uninterrupted high temperatures and little or no rain. Mid-August reports from Kansas are to the effect that 50 to 75 per cent of the crop in the eastern part of that st~te is now damaged beyond the point where it can produce even a fair crop and that in the western half is even more seriously impaired. Much of the corn in Nebraska is reported irreParably damaged, particularly in the south central and southwestern counties. Local rains improved conditions in the western third and northern half of the state. Hay crops, both tame and wild, have been the best in several years in all states of the District and farmers are assured,..:of ample supplies, enabling them to conserve their cash and hold live stock off the market. The District tame hay crop is estimated at 9,173,000 tons, whereas last year only 4,994,000 tons were harvested. Cutting of the second crop of alfalfa is nearing completion but the third crop has made poor growth and will be short. Grain sorghums, the acreage of which is unusually large, withstood the heat until the second week of August and then commenced to deteriorate rapidly. The weather has been favorable for cotton and the crop has made good progress, plants setting squares and some blooming, 1 6 THE MONTHLY REVIEW but rains would be beneficial. Abandonment -has -been very light to date. Tenth District production is forecast at 686,ooo bales this year, a gain of 423,000 bales over 1934. Sugar beets have also done well and timely rains in the principal producing areas improved the outlook for dry beans. Broomcorn acreage has shown a marked expansion and harvest has begun in parts of Oklahoma. Summer.. plowing is_delayed by the hard, dry soil and excessive heat. · The outlook for fruit is fair to good. · Peaches and early varieties of apples are moving to market from Oklahoma and the Ozark region and the movement of a bumper crop of peaches of excellent quality from the Grand Valley in Colorado will commence about the first of September. A large Ozark grape crop is in prospect with shipments commencing and wineries preparing to begin operations. Live Stock Receipts of all classes of live stock at the six:principal markets of the Tenth District were somewhat heavier: during July than in June but considerably lighter than in July, 1934, when drouth conditions compelled heavy marketings, the forced movement of cattle and hogs being notably large. Compared to July, 1934, cattle receipts were down 59.9 per cent, and with the exception of 1932, smaller than in any like month in seventeen years of record. Calf receipts, although 70.4 per cent lighter than a year ago, were otherwise larger than in any July since 1928 but 22 per cent below the ten-year average volume. The most conspicuous loss was in swine numbers, which, with the exception of June this year, were smaller than in any month of record, 69.8 per cent less than a year ago and 63 per cent below normal for the season. Sheep and lambs exceeded the normal supply by 8.7 per cent but July numbers fell 9.6 per cent short of a year ago and were the smallest · in three years but otherwise the largest since 1919. Scarcity boosted hog prices $1.25 to $1.50 per hundredweight in July to a top of '$10.75. The advance continued well into August, butcherweights reaching $12 at the Kansas City market on August 15 which was the best price since July, 1929, and was exclusive of the processing tax of 1,2.25 per hundred pounds. Limited consumer demand prevented an advance in cattle and sheep values. Cattle prices broke as much as 50 cents to 'l,1.00 at the low-time but recovered half the loss toward the close. The Kansas City top for beef steers was $12 per hundredweight, or $3 better than a year ago, and other classes of cattle sold largely $2 to $3 higher. Lamb prices fluctuated narrowly throughout the month, closing prices showing a small net gain. Native lambs sold up to $8.60 and early shipments of western lambs to $8.40 or about 6o cents above last year's top. The Division of Crop and Live Stock Estimates placed the number of cattle on feed in the eleven corn belt states on August I this year at 28.5 per cent less than on August 1, 1934, the reduction being principally in the states west of the Mississippi River. Kansas and Missouri had 55 per cent and Nebraska 50 per cent as many cattle on feed August I this year as last. A survey of anticipated purchases the balance of the year disclosed feeders expected to buy a much larger number of cattle this· year than they did last, particularly those located in the western corn belt states. RANGES AND PASTURES: Cattle and sheep on western ranges are reported in very good condition. Range feed supplies are good except in southeastern Colorado, western Kansas, eastern and southern New Mexico, and parts of the Oklahoma and Texas panhandle where they are becoming very dry from the heat and lack of moisture. Pastures and ranges generally need rain to insure fair to good grazing in the future. Hay and feed crops promise ample supplies for winter needs except in the limited dry areas from which some shipments of live stock may be forced. The supply of stock water is generally sufficient although getting short in some areas. Calves and lambs have made good growth and prospects are for well finished grass fat cattle and lambs and a limited number of feeder lambs. Slaughter supplies oflambs the remainder of the marketing year up to April 1, 1936, are expected to be smaller than for several years. The retention of a larger than usual number of heifer calves and ewe lambs to restock herds and flocks, depleted by last summer's drouth, is anticipated. The Blue Stem pastures of Kansas and the Osage pastures of Oklahoma are holding up quite well but are in need of rain. WOOL: Preliminary estimates of the United States Department of Agriculture place the amount of wool shorn or to be shorn in the United States in 1935 at 343,889,000 pounds, or 4 per cent less than was shorn in 1934 or the average for the five years, 1930 to 1934 inclusive. lVIeat Packing In keeping with enhanced supplies, the slaughter of cattle and calves and sheep and lambs at the six principal Tenth District market centers increased in July but packers' purchases of hogs, direct shipments included, fell off 3.4 per cent despite an increase in marketings. Comparisons with the forced liquidations of July, 1934, disclose a decline in cattle slaughter of 51.2 per cent, calf slaughter of 67 per cent, and hog slaughter of 71.7 per cent, with butcherings this year being, respectively, 18, 15, and 63 per cent below the ten-year average for July The sl;mghter of sheep and lambs, although showing a slight gain over July last year, was 10 per cent under the average. Government drouth relief purchases excluded from last year's totals, the July Federally inspected slaughter of commercial cattle in the United States was off 7.9 per cent and of calves I 1.7 per cent as compared with a year ago, cattle numbers equaling, and calf numbers exceeding by 17 per cent the ten-year average. Hbg slaughter, the smallest for any month since September, 19II, or any July since 1902, declined 48.5 per cent and fell 46 per cent short of the average of the past ten years. Lamb slaughter was 19.4 per cent larger than in July, 1934, . and '24 per cent above normal. JULY MOVEMENT OF LIVE STOCK IN THE TENTH DISTRICT Kansas City ... ·-······Omaha ..... _................ -. St. Joseph ...... ·--·····-·· Dcnver·-··-··-···----··-·· Oklahoma CitY··--······ Wichita--···-·-···---···-- Cattle 108,8:25 78,973 28,338 18,833 43,221 20,6o7 298,797 July 1935--·-·-····-·-····· 238,912 June 1935·---··--·-----·-· 745,9 1 6 July 1934----······--··-····· Seven months 1935_. 2,170,786 Seven months 1934.. 2,921,648 •Includes 47,271 hoi• shipped R E CEI pT s Calves Hogs :l'l,789 *82,851 6,134 97,658 7,893 46,029 3,807 . 22,956 9,632 13,712 3,891 9,822 STOC!t.Ell.S AND FEEDERS Sheep 77,:256 125,341 88,246 258,919 13,345 8,694 Cattle 25,852 6,700 2,048 1,868 54,146 273,0:28 571,801 44,482 532,265 257,434 632,600 182,979 902,897 418,951 2,458,570 4,089,640 ·517,036 5,739; 130 4,316,491 direct to packers' yards. 36,468 33,858 168,889 422,543 463,171 Calves 4,146 406 . 296 262 5,110 6,515 n,465 74,971 57,463 Hogs 1,9:29 1,376 1,64:2 995 5,94:2 . 6,108 u,081 4 2,745 61,594 - Sheep II,539 18,306 2,353 14,761 46,959 28,396 75,48 2 294,758 379,845 PuacHASED roa SLAUGHTER Cattle 57,776 . 54,165 22,570 13,836 25,443 10,764 I84,554 146,015 378,414 1,168,057 1,691,197 Calves 20,477 5,7:28 6,383 3,481 6,365 3,839 Hogs *72,806 69,844 36,230 13,414 n,640 8,774 Sheep 64,:299 105,777 84,942 22,945 10,963 6,330 212,708 295,256 46,273 220,196 281,995 36,298 292,638 140,423 75:2,356 323,261 2,020,405 2,265,286 4 21 ,743 4,896,25'1 2,374,086 7 THE MONTHLY REVIEW The Federally inspected slaughter figures as compiled by the Bureau of Animal Industry: Cattle Calves Hogs Sheep July 1935...................... 744,900 464,091 1,712,311 1,545,804 June 1935,____ 669,253 439,134 1,828,279 1,420,679 July 1934.. _ _ _ _ 808,837 525,309 3,324,440 1,294,237 Seven months 1935._. 4,983,491 3,256,016 15,505,091 9,889,702 Seven months 1934·--· 5,588,146 3,634,353 26,580,295 8,769,939 NOTE: The slaughter of cattle and calves for Government relief purposes excluded. Cold Storage Holdings Contradicting last year's movement, United States cold storage holdings of beef, pork, lamb and mutton, poultry, miscellaneous meats, and lard declined in July. The out--0fstorage movement of beef, miscellaneous meats, and lard was a reversal of normal trends and net withdrawals of pork and poultry were unusually heavy for the season. On August 1 inventories of pork were 42.5 per cent and of lard 67.2 per cent smaller than one year earlier and 46.5 and 56.5 per cent, respectively, below the August I five-year average. Stocks of beef, down 19.3 per cent as compared to a year ago, were 5.3 per cent above the average but holdings of miscellaneous meats were 31.9 per cent below the average. Stocks of poultry and mutton are normal for the season. Net accumulations of creamery butter, amounting to 53,072,000 pounds in July this year compared to- 38,600,000 pounds last year, and a five-year average for the month of 34,724,000 pounds, pushed holdings as of August I to 149,464,000 pounds, 18.6 per cent above normal and within 3,000,000 pounds of the August I record holdings established in 1929 and 1933. Restricted consumption was largely responsible for the heavy in-movement. Holdings of cheese and cased eggs also increased somewhat more than usual but stocks of the former are 18.3 per cent and of the latter 11.4 per cent ·below a year ago and 3.4 per cent and 12.9 per cent, respectively, short of the five-year average. August I United States cold storage holdings, with comparisons, as reported by the Bureau of Agricultural Economics: • Aug. I 1935 49,663 369,792 2,126 41,177 II,654 July Aug. I Aug. · I 1934 5-Yr.Av. Beef, lbs.·----······················61,545 47,147 Pork, lbs ... __________ 445,307 643,566 691,639 Lamb and mutton, lbs ......·-·············· 2,376 1,518 2,098 Poultry, lbs........................................... 47,051 44,904 40,259 **Turkeys, lbs ..................... _ _ _ _ 13,851 6,648 5,400 Miscellaneous meats, lbs.·---············· 49,595 52,697 78,266 72,803 Lard, lbs ......·-····························-········ 68,815 84,680 209,497 I 58,131 Eggs, cases............................................ 7,940 7,595 8,961 9,120 Eggs, frozen (case equivalent).......... 3,321 3,084 3,473 3,196 Butter, creamery, lbs.·---·················- 149,464 96,392 108,748 u6,022 Cheese, all varieties, lbs..................... 94,619 75,291 u5,842 97,930 *Subject to revision. ••Included in Poultry. (ooo omitted). NOTE: Meats held for the account of the Federal Emergency Relief Administration are not included in the above. I 1935 55,653 Cement Cement mills in the District produced 764,000 barrels and shipped 802,000 barrels of finished Portland cement during July. Production was 10.9 per cent smaller than a year ago and considerably below normal, whereas shipments were the heaviest for the season since 1931. Stocks were reduced 6.4 per cent for the month but on July 31 were 19 per cent larger than one year earlier and somewhat larger than on any like date in recent years. Production, shipments, and stocks of Portland cement as reported by the United States Bureau of Mines, -Department of Commerce: TENTH DISTRICT Production Shipments July 1935............ 764 802 June 1935·-········· 987 697 July 1934............ 857 687 UNITED STATES Stocks 2,353 2,515 . 1,980 Production Shipments 8,021 7,813 8,725 7;632· . 8,144 7,898 ~ Stocks 23,291 23,083 2I,8f2 Petroleum Crude oil production in the five oil producing states of the District for July was estimated from the weekly reports of the American Petroleum Institute at 23,551,000 barrels, or a daily av~rage of 759,700 barrels. Compared to the June report of the United States Bureau of Mines gross production showed a gain. of 1.8 per cent for the month but daily average production was off 11,500 barrels or 1.5 per cent. Production was 3.9 per cent larger than in July, 1934. The gross production figures by states: *July 1935 Barrels 15,918,000 4,600,000 I ,242,000 129,000 1,662,000 June 1935 Barrels 15,528,000 4,6o7,ooo I ,206,000 1,680,000 July 1934 Barrels 15,6o9,ooo 4,210,000 1,277,000 109,000 1,460,000 Total five states_··-····-·············· 23,551,000 Total United States.................... 83,922,000 *Estimated, American Petroleum Institute. 23,136,000 82,338,000 22,665,000 81,548,000 Oklahoma__···-··············-········ Kansas ...·-··········---··-······-···· Wyoming.........·-·························· Coloritno --··································· New Mexico.____:........................ . I I 5,000 To maintain stability in the petroleum industry and forestall a burdensome over-production of crude oil late in the summer when the consumption of motor fuels begins to decline, the states of Oklahoma, Kansas, Texas, and Californ.ia reduced their daily average allowables for August. The daily average allowables in Oklahoma were fixed at 491,194 barrels, Kansas 139,858 barrels, and Texas 1,003,590 barrels. . . Posted price schedules for mid-continent crude 011, which have been in effect for almost two years, range from 76 cents per barrel for low gravity oil to $1.08 per barrel for that testing 40 degrees and above. . . Field operations continued unusually active as companies attempted to increase their known reserves. Old pools were extended and several new discoveries were reported but there were none of major importance. Bituminous Coal Production of bituminous coal at mines in the six coal producing states of the District, as estimated from the weekly reports of the United States Bureau of Mines, declined contrary to seasonal trends in July, output being 22.2 per cent lighter than in the preceding month. The July tonnage exceeded that of July, 1934, by 4.7 per cent and cumulative output for the calendar year to August 1, estimated at 10,273,000 tons, increased 18.1 per cent over the like pe:iod last y~ar. The July tonnage as estimated by states with comparisons: Colorado,_ _ _ _ _ _ __ Kansas and Missouri.. ............... . New Mexico·----·····················-·· Oklahoma.__ _ _ _ __ Wyoming.·-·······-························· *July 1935 Tons 236,000 293,000 88,ooo 6 I ,000 317,000 June 1935 Tons 304,000 430,000 102,000 6o,ooo 383,000 July 1934 Tons 213,000 329,000 84,000 6 I ,000 263,000 Total six states............................ 995,000 1,279,000 950,000 Total United States ....... ·-·········· 22,252,000 30,067,000 24,869,000 *Estimated from the weekly reports of the United States Bureau of Mines. Zinc and Lead Shipments of zinc ore and lead ore from Tri-State mines and tailing mills during the five weeks' period ended August 3 were considerably larger than for either the five weeks' period ended June 29 this year, when a strike of mine, mill, and smelter workers restricted operations, or in the like period last year when most mines either were closed down voluntarily in an attempt to reduce output or were forced to do so by a shortage of milling water. Ore prices have been steady to strong, lead scoring two '1,1 per ton advances during the five weeks' period to close at $43 per ton, or $5.50 per ton above a year ago, and zinc ore mo_:ved up to $29 per· ton, $1 higher than one month or one year earlier. 8 THE MONTHLY REVIEW Rusiness Conditions in the United States By the Federal Reserve Board 120 k;f!-->\--lf----i--+--+--+---+----l 1io Factory employment and output were maintained in July at the June level, though usually there is a considerable decline at this season. Activity at mines showed a substantial decrease, reflecting a sharp reduction in output of coal. 110 t - - -1-'- - - - - r - - - t - - - - t - - - + - - - j 110 100 r-----1i----t--.r--1---+----f 100 90 '° r----1----1-, --+----i--l 70 t----l-----+-- ~ ---1---+---+--,~4 ~ - + - - + - - i 50 ______.._---1_ _...._ ~ _..__-1.._--'---_~ ~ Tndex of ind ustrial prod uction, adjusted for seasonal v ariation. (1923-1925 average= 100.) Lates t fi gure : J uly, 86. PU!C[NT P'I'" CENT 120 120 FACTQRY EMPLOYMENT 11 0 100 11 0 .r'"\ IOO '\ "~ 90 70 90 ,... ,_ ~ ro I' I/ V 60 70 \,.. ~I $0 50 I ndex of factory employment, adjusted for se:i.sonal variation. (19-z.3-1925 average= 100.) Lates t fig ure: J uly, 80,4- ,CU01f'1 Of' :nu... ., MiUJONS ti DCt.UM r,oo - - 1CCNSTR UCTION = CONTRACTS A'N~RCEO 600 PRODUCTIO A D EMPLOYMENT: The Federal Reserve Board's seasonally adjusted index of manufactures showed an increase in July, while the index of mineral production showed a marked decline, with the consequence that the index of industrial production remained unchanged at 86 per cent of the 1923-2 5 average. For the first seven months of the year industrial output was six per cent larger than a year ago. Activity at steel mills, which had declined during June, advanced considerably during July and the first three weeks of August and there was also a substantial increase in the output of lumber. Automobile production showed a decrease from the high level prevailing earlier in the year, reflecting in part seasonal developments. Output of textiles increased somewhat in July, owing chiefly to increased activity at silk mills. In the woolen industry the recent high rate of activity continued, while at cotton mills ckily average output declined by about the usual seasonal amount. Meat packing remained at an unusually low level. At mines, output of bituminous coal decreased sharply in July, following an advance in the preceding month, and there was also a sharp reduction in output of anthracite. Factory employment, which usually declines at this season, showed little change from the middle of June to the middle of July. Employment increased somewhat in the machinery, lumber, furniture, and silk industries and there was a large seasonal increase in the canning industry. Decreases of a season~tl character were reported for establishments producing cotton goods and women's clothing, while in the automobile industry employment declined by more than the usual seasonal amount. At coal mines employment showed a marked decrease in July . The total value of construction contracts awarded, as reported by the F. W. Dodge Corporation, increased further in July and the first half of August, reflecting an increase in non-residential projects. Residential building continued in considerably larger volume than a year ago, with increases from last year reported for most sections of the country. ~~~---1---tl--+---+---+--~ = Department of Agriculture estimates as of August I indicate a cotton crop of bales, about 2,200,000 bales larger than the unusually small crop last year. The indicated wheat crop, while larger than a year ago, is considerably smaller than the five-year average for 1928-32. Crops of corn and other feed stuffs are substantially larger than last season. JI ,800,000 19 2:1 1930 1931 1932 1933 1934 193, Three month moving averages of F . W. Dodge data fo r 37 eastern states, adjusted for seasonal variation. Latest fi gure based on data for May and J une and estima te fo r July : tota l, 148.8 ; residential, 45.9; all other, 102.9. 81LU'Jt.SOF0tll.UltS 8 lfl.LI0..13 Of'DOl.UJ'I ME~BER BANK CRE:)IT I 1932 193~ • 1934 Wednesday figu res for reporting member banks in 91 leading cities. Latest fi gures are for August 14. DISTRIBUTIO : Daily average volume of freight-car loadings declined in July, reflecting a marked decrease in shipments of coal. Department store sales showed a seasonal decline and the Board's adjusted index remained unchanged at 80 per cent of the 1923-25 average. PRICES: The general level of wholesale commodity prices showed little change during July and advanced slightly in the first three weeks of August. For the sevenweek period as a whole there were substantial increases in the prices of hogs, lard, silk, and scrap steel, while cotton declined. Wheat, after advancing considerably during the latter part of July, declined somewhat in the early part of August. BA K CREDIT: Excess reserves of member banks increased by $340,000,000 in the five-week period ended August 21 as a consequence principally of a red uction in the balances held by the Treasury with Federal reserve banks. There were also moderate imports of gold from abroad. Total loans and investments of reporti ng member banks in leading cities showed a net decline of '1,290,000,000 during the four weeks ended August 14. Holdings of direct obligations of the United States Government dec1eased by 220,000,000 following a substantial increase in the middle of July. Loans declined by I 80,000,000 in the latter part of July but subsequently advanced by 40,000,000, while holdings of Government guaranteed and other securities increased by 70,000,000 in the four-week period. Yields on Government securities rose slightly during this period, while other shortterm open-market money rates remained at low levels.