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a-----------------------·---------------------a
THE MONTHLY REVIEW
Covering Conditions in the Tenth Federal Reserve District
FEDERAL l{ESERVE BANK OF KANSAS CITY
For the Information of Member Banks and Business Interests of this District
ASA E. RAMSAY, Chairman Board Directors
Qnd Federal Reserve Agent
C. K. BOARDMAN, Assistant Federal Reserve Agent
and Secretary
a----------------------,------------------------a
VOL.
6 No. 9
Kansas City, Mo., Sept. 20, 1921
HIGH LIGHTS ON THE SITUATION IN THE
TENTH FEDERAL RESERVE DISTRICT
Wheat arrivals in July and August at Kansas
City, Omaha, St. Joseph and Wichita 62,744,700
bushels, equal to 25.1 % of total wheat production
in the District and 124.6% more than arrivals at the
same markets in July and August, 1920.
Flour manufactured in July and August at Kansas
City, Omaha and 82 interior mills 4,331,145 barrels,
71.7% mo1·e than manufactured in corresponding
two months last year.
U. S. crop summary for September 1 raised corn
yield for the District 17,783,000 bushels to a total
of 487,283,000 bushels, which is 15.3% of the Nation's corn crop and 10.2% less than the District's
corn crop of 1920.
Final estimate on wheat crop in the District 249,950,000 bushels, 32.9% of the Nation's 1921 wheat
crop and 11.4% less than last year's crop.
Live stock receipts in August at Kansas City,
Omaha, St. Joseph, Denver, Oklahoma City and
Wichita: cattle 508,052, hogs 509,417, sheep 761,849.
Compared with August last year: cattle increase
6.6, hogs increase 11.5%, sheep decrease 8.9%.
Packers' purchases in August at six markets: cattle 237,891, increase over August last year 5.8%:
calves 44,352, decrease 21.8%: hogs 406,410, in~
crease 17.6%; sheep 407,012, increase 26.3%.
Sheep on mountain ranges estimated at one-third
short of normal supply.
Crude oil production running well above 400,000
barrels per day in Kansas and Oklahoma, though a
big decrease in new developments is reported.
Coal mining still lagging behind last year, mines
in District operating at 52.7% of full time in August.
Lead and zinc mining unchanged.
Telluride and Cripple Creek metal mining districts
report near normal activity; operations at a low
stage in other districts.
Building permits in seventeen cities of the District
in August 2,762, estimated cost $7,661,119, increase
over August, 1920, of 54.8% in number of permits
and 93.8% in cost of construction.
Wholesale trade in August largest of any month
in 1921 to date, but money value of merchandise
sold was below August, 1920.
Retail sales in August in cities of the District
averaged 8.9% below August 1920, in money value
of goods.
Employment situation slightly improved.
N enormous volume of products of farms and
ranges moving through market channels this
season has tended to strengthen the demand
for currency and credit in the Tenth Federal
Reserve District. Rates, however, have in no manner
been affected, as it is apparent that ample loanable
funds are available for all requirements. Crop money
flowing countryward since harvest time has eased the
situation in the wheat sections very perceptibly and
the reports from country banks indicate that liquidation of loans is proceeding there very rapidly.
A
The task of financing a movement of wheat and
flour which is more than double the volume of last
year's movement, in addition to providing for the
movement of other crops and an extraordinary run of
live stock, requires as much if not more money and
credit than was required last year even though prices
of all products are materially lower than they were a
year ago. Thus, while the farmers are getting out of
debt, cutting down production costs and otherwise
readjusting their affairs to enable them to squarely
meet new conditions, debt reduction in other lines at
this particular time is not proceeding at as high percentage as earlier in the year.
Notable among the new financial movements of the
season is that of the War Finance Corporation which,
under authority of Congress, is proceeding systematically to render aid to the agricultural and live stock
industries of this district, as well as the entire country,
in a manner not provided for by the Act creating the
Federal Reserve System. An agency of the Corporation is to be establi hed in Kansas City.
The statement of the Federal Reserve Bank of Kansas City at the close of business on September 14th
showed a slight ·reduction in the volume of loans to
member banks in the past month. The total of all bills
discounted, including open market purchases of bills,
on that date was $66,378,525 as compared with $67,213,281 on August 17th. The deposits on the last
reporting date amounted to $75,725,321, or $60,827
less than they were at the middle of August. The
ratio of total reserves to .deposits and Federal Reserve
notes liabilities combined was 57.5% as compared with
59.6% four weeks previously.
· The combined reports as of September 7th of 79
member banks, selected from all sections of the district, indicates a reduction from August 3rd of $6,896,000 in loans, the total of September 7th being
2
THE
MONTHLY
~427,730,000. Deposits on the first weekly reporting
date in September amounted to $378,076,000, which
was $5,790,000 more than was reported in the first
week of August. Time deposits were $99,913,000 or
$1,948,000 less than at the August date, while Government deposits in the same period were reduced from
$8,874,000 down to $3,407,000.
Bank Clearings.-Thirty-two cities in the Tenth
Federal Reserve District for the month of August reported clearfogs aggregating $1,294,349,425, which was
29.9% less than the total clearings for the same cities
in August last year.
Clearings of the Federal Reserve Bank of Kansas
BANK CLEARINGS FOR AUGUST, 32 CITIES IN TENTH
FEDERAL RESERVE DISTRICT
August, 1921 Pct. Change
Kansas City, Mo ................ $ 665,908,217
-31.1
-27.1
Omaha, Neb. . . . . . . . . . . . . . . . . . . 164,935,947
-22.3
Denver, Colo. . . . . . ............... 118,303,070
-19.4
Oklahoma City, Okla. . . . . . . . . . . 102,638,435
-23.9
Wichita, Kans. . . . . . . . . . . . . . . . . .
50,391,930
-31.7
St. Joseph, Mo .. .'..............
43,249,503
-53.3
Tulsa, Okla. . . . . . . . . . . . . . ..... . . .
24,515,970
-19.5
Kansas City, Kans. . . . . . . . . . . . . .
17,971,018
-27.2
Hutchinson, Kans. . . . . . . . . . . . . . .
13,835,260
-41.2
Lincoln, Neb. . . . . . . . . . . . . . . . . . .
13,335,531
-10.3
Topeka, Kans. . . . . . . . . . ..... . . . . .
12,462,099
-46.4
Muskogee, Okla. . . . . . . . . . . . . . . .
9,643,834
Enid, Okla. . .. . . . .. . . . . . .. . . . .
9,386,808
-26.8
Cheyenne, Wyo. . . . . . . . . . . . . . . . .
5,412,916
..:_ 6.3
Colorado Springs, Colo. . . . . . . . . .
4,898,796
-25.2
Grand Island, Neb. . . . ..... . . . . . . .
4,862,445
-48.1
Joplin, Mo. . . . . . . . . . . . . . . . . . . . .
3,779,000
- 9.8
Pueblo, Colo. . . . . . . . . . . . . . . . . . .
3,630,514
-49.4
Okmulgee, Okla. . . . . . . . . . . . . . . .
2,792,093
-38.3
Bartlesville, Okla. . . . . . . . . . . . . . .
2,662,542
-34.2
Hastings, Nebr. . . . . . . ..... . . . . . . .
2,443,171
-38.0
Atchison, Kans. . . . . . . . . . . . . . . . .
2,401,502
- 7.5
Pittsburg, Kans. . . . . . . . . . . . . . . .
2,363,055
Independence, Kans. . . . . . . . . . . .
2,213,849
-42.8
Fremont, Nebr. . . . . . . . . . . . . . . . .
2,062,708
-28.2
McAlester, Okla. . ..... . . . . . . . . . . .
1,689,236
Guthrie, Okla. . . . . . . . . ...........
1,679,397
-50.8
-33.2
Parsons, Kans. . . . . . . . . . . . . . . . .
1,348,551
Lawton, Okla. . . . . . . . . . . . . . . . . .
1,244,261
-22.3
- 9.9
Grand Junction, Colo. . . . . . . . . . .
928,959
-56.6
Miami, Okla. . . . . . . . . . . . . . . . . . .
924,204
Emporia, Kans. . ..... . . . . . . . . . . . .
434,604
-63.9
Total, August, 1921 ............. $1,294,349,425
*-29.9
Total, August, 1920 ......... ·.... 1,830,535,221 .
*Percentage computed on cities reporting for August of
both years.
DEBITS BY BANKS TO INDIVIDUAL ACCOUNT FOUR
WEEKS ENDING AUGUST 31
4,820,000
Atchison .................................... $
5,742,000
Bartlesville . . ............................. .
Cheyenne ................................ .
7,666,000
Colorado Springs . . ......................... .
11,694,000
Denver .................................. . 126,242,000
Joplin .................................... .
6,406,000
Kansas City, Kans ........................ .
12,076,000
Kansas City, Missouri . .... .................. . 299,327,000
Muskogee ................................ .
10,619,000
Oklahoma City ........................... .
72,828,000
Omaha ...................... .... .... . ...... . 169,763,000
Pueblo ................................... .
17,996,000
St. Joseph ................................ .
62,587,000
Topeka ..................................... .
12,785,000
Tulsa ......... ~.: ........................ .
55,031 ,000
Wichita .................................. .
42,384,000
Four Weeks, 1921. ...................... ...... $ 917,966,000
Four Weeks, 1920. . . . . . . . . . . . . . . . . . . . . . . . . . . 1,234,507,000
REVIEW
City for the week ending September 14th totaled $200,792,123, with a total of 1,164,913 items handled. In
the corresponding week in August, ending on the 17th,
the clearings were $160,899,197 with 1,060,687 items
handled.
Debits by banks to individual account at sixteen
reserve cities of this district were $917,966,000 for the
month of August, which represented a loss of 25.6~{,
as compared with the total for August, 1920. This is
regarded as a very favorable showing when the difference in prices between this year and last year on the
products of all of the basic industries of this district
is taken into consideration.
Business Failures.-There were 75 commercial failures involving $966,896.00 in liabilities in the Tenth
Federal Reserve District during the month of August,
according to Dun's report. In the n.umber of failures
for the month the Tenth District was slightly ahead
of the Third, Eighth and Ninth Districts, but the
liabilities for the Tenth District were $491,680.00 below the total for the next lowest district. The August
record for the Tenth District compares with 48 failures and $1,056,534.00 liabilities in July, and 11 failures with a total of $85,735.00 liabilities in August,
1920.
Business failures in the United States in the month
of August this year were 1,562 in number and the
liabilities involved were $42,904,409.00. Failures in
the United States by Federal Reserve districts are
shown in the following table with the record for August, 1920, for the purpose of comparison :
Aug., 1921
No.
First .
118
Second ...... . 216
Third ....... .. . 68
Fourth ..... . 137
Firth ...... . 98
Sixth ....... . 198
Seventh .... . 204
Eighth .... .. 67
Ninth ...... . 72
Tenth ....... . 75
Eleventh .... . 137
Twelfth ..... . 172
Total ....... . 1,562
Aug., 1920 Aug., 1921
Aug., 1920
No.
Liabilities
Liabilities
58
$ 2,821,841 $ 780,210
179
9,685,653
15,009,838
33
2,090,756
3,066,914
70
5,183,707
1,347,045
40
2,658,017
691,785
42
4,489,443
2,605,429
86
4,123,520
3,177,188
31
2,200,012
288,672
18
1,458,576
85,515
11
966,896
85,735
33
1,991,284
411,027
72
5,234,704
823,537
673
$42,904,409
$28,372,895
MERCANTILE
The improvement in wholesale trade which started
at the end of May has continued in this district with
a larger volume of business in August than in any
previous month of the year, according to the reports
to the Monthly Review. Retail merchants, however.
as a rule, continue to buy only for their immediat~
wants. Deliveries of stocks continue good in mo~t
lines, although textiles are moving slowly from manufacturers to distributors. Collections are reported
easier during the month of Augu t than during the
previous month this year.
Comparisons of sales at wholesale show a decrease
of from 16% to 69% in the various lines as compared
with sales in August of last year. This difference is
more than offset in some lines by the heavily reduced
prices of merchandise, so that the outgo, in quantity,
of merchandise to retailers in some lines is larger than
last year at this time. The following summary of re-
'
1
THE
MONTHLY
3
REVIEW
CONDITION OF RETAIL TRADE DURING AUGUST, 1921
IN THE TENTH FEDERAL RESERVE DISTRICT
Based upon reports from 13 stores
Kansas City
(*3)
Percentage increase (or decrease) of net sales during August,
1921, over net sales during same month last year ........ Dec. 9.4
Percentage increase ( or decrease) of net sales from July 1,
1921, to August 31, 1921, over net sales during same period
last year . . . : ........................................... Dec. 10.1
Percentage increase (or decrease) of stocks at close of August,
1921, over stocks at close of same month last year ........ Dec. 18.1
Percentage increase (or decrease) of stocks at close of August,
1921, over stocks at clsoe of July, 1921. ................... Inc. 10.3
Percentage of average stocks, selling price, at close of each
month this season (commencing with July 1) to average
monthly net sales, selling price, during the same period....
644.1
Percentage of outstanding orders (cost) at close of August,
1921, to total purchases (cost) during the calendar year,
1920.. . . . . . . . . . . . . . . . . . . . . . . . . . . . .......................
7.6
Percentage of collections during month of August, 1921, on
amount of outstanding accounts on July 31, 1921..........
45.6
Percentage of collections for same period last year. . . . . . . . . . .
45.9
"'Number of stores reporting.
ports shows the percentage of decrease or increase
of sales by wholesalers in August as compared with
July of this year and also as compared with August
last year:
Sales in August, 1921
compared to sales in
July, 1921
August, 1920
Automobile Accessories (2) . . . . . . 10.5%
-20.8%
Drugs (3) . . . . . . . . . . . . . . . . . .. . .
5.9
-15.2
Dry Goods (3).................. 29.1
-39.
Furniture (4) . . .. . . . . . . . . . .. . . . 64.8
-36.1
Groceries (4) ........•......... - 7.2
-21.8
Hardware (3) • . . . . .. . . . .. . . . . . .
5.2
-30.
Implements (2) ................ -11.1
-69.9
Millinery (4) . . .. . . .. . . . . . . . . . • 92.6
-16.1
Paints (2) ..................... - 7.5
-42.1
Reports from retail houses in cities throughout the
district vary as trade is affected by local conditions, but a general improvement is found by a summary of the reports. Using the department stores
reports as an illustration it is noted that sales in dollars and cents in August for all stores reporting averaged 8.9% below those of August, 1920, although
prices of merchandise sold over the counters in department stores are far below the prices in August,
1920, with which comparison of sales is made.
INDUSTRIAL.
rhe reports for August from the cities of the district show some improvement in the employment
ituation although little change is noted in the mining
districts. The August survey on employment conditions by the Department of Labor showed the number
of unemployed in cities of this district to be as follows:
Kansas City, Missouri .... ........................... .
Kansas City, Kansas ................................
St. Joseph . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Omaha . . .............. ·-· . . . . . . . . . . . . . . . . . . . . . . . . .
Lincoln . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Topeka . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .....
Atchison . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • . . . . . •
Wichita.. . . . . . . . . . . . . . . . . . . . . . ........ ... . . . . . . . . . .
9,000
4,000
5,000
8,000
475
1,500
1,000
None
In the cities named a considerable number of unemployed has come from railroad shops, building
trades, milling industries and various lines of business
connected with distribution, although a very large
proportion of the unemployed are classed as drifters.
The report says that in 13 of 30 cities reporting from
Denver
(*3)
Other Cities
(*7)
District
(*13)
Inc.
.7
Dec. 16.6
Dec.
Dec.
7.3
Dec. 18.1
Dec. 11.6
Dec. 13.9
Dec. 1~.8
Dec. 15.1
Inc. 13.2
Inc. 16.4
Inc. 12.7
444.3
560.2
527.9
8.5
8.5
8.1
38.1
38.8
46.2
47.1
43.9
41.p
8.9
7 states of this section retail trade was said to be improving, 15 cities reporting in which only 2 showed
a falling off. Cities reporting the improvement in
business were in the agricultural region.
While there are few strikes in this district there are
a number of wage controversies pending, notably, the
question among railroad employees as to what action
is to be taken in regard to the recent wage cut and
changes in working rules. The announcement by four
of the large packing concerns that they have adopted
the American Shop Representation System by which
employees in all departments meeting with company
representatives may consider matters affecting working conditions, has brought forth opposition from the
Butcher Workmen Union organization.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
CONDITION OF 79 SELECTED MEMBER BANKS
September 7, 1921 August 3, 1921
Loans and Discounts (exclusive of rediscounts):
(a) Secured by U. S. Govt.
obligations . . . ........ $ 16,070,000 $ 17,505,000
(b) Secured by stocks and
bonds other than U. S.
Bonds . . . . . . . . . . . . . . . .
66,114,000
70,408,000
(c) All other . . . . ........... 345,546,000
346,713,000
Investments:
(a) United States Bonds ... .
32,919,000
32,o43,000
(b) U. S. Victory Notes ... .
2,483,000
3,057,000
( c) U. S. Cert. of Indebt... .
160,000
11,684,000
(d) U. S. Treas. Notes .... .
5,480,000
456,000
( e) Other Bonds, Stocks and
Securities . . ......... .
44,151,000
44,453,000
Total loans and discounts, and
investments . . . . . . . . . . . . . . . 512,923,000
526,319,000
Reserve bal. with F. R. Bk.. .
41,909,000
38,572,000
Cash in vault..............
13,075,000
12,199,000
Net demand deposit on which
reserve is computed........ 378,076,000
372,286,000
Time Deposits • . . . . . . . . . . .
99,913,000
101,861,000
Government Deposits . . . . . .
3,407,000
8,874,000
Member banks' collateral
notes secured by
(a) U. S. Govt. obligations..
8,441,000
9,278,000
(b) All other. . . . . . . . . . . . .
None
None
Bills discounted for member
banks secured by
(a) U. S. Govt. obligations..
1,622,000
2,237,000
(b) All other . . . . . . . . . . . . .
25,384,000
28,655,000
Total (items 3 to 10 incl.) ....$1,084,750,000 $1,100,281,000
THE
4
MONTHLY
CROPS OF 1921
Corn.-The Government's September estimate of
3,185,876,000 bushels of corn for the United States
indicates a total crop for the Tenth Federal Reserve
District of approximately 487,283,000 bushels, which
is an increase for this district of about 17,783,000 bushels over the estimate of August 1st. According to
the Government's September figures, Nebraska will
produce 223,173,000 bushels, or 5,239,000 bushels more
than was indicated by the August 1st estimate. Kansas is reported to have gained 13,755,000 bushels during the month, and on September 1st the crop was
estimated at 118,912,000 bushels. Missouri was scheduled to produce 206,372,000 bushels, or 24,73'\ 000
bushels more than was estimated August 1st. This
indicates a gain of approximately 5,871,000 bushels
for the 19 counties of Missouri which are in the Tenth
Federal Reserve District, giving those counties a total
of 48,096,000 bushels. Oklahoma report ed a loss of
4,171,000 bushels in August and is scheduled to produce 85,029,000 bushels. Wyoming and Colorado reported slight losses in corn production.
Wheat.-The wheat crop showed a decline in August of 3,000,000 bushels, and a total of 753,858,000
bushels is this year's crop for the United States. The
estimates of September 1st showed no material change
in the production . of winter wheat in the states of this
district, although a slight decline in spring wheat
grown in the northwestern part of the district was
reported. This indicates that the estimated production of all wheat in the Tenth Federal Reserve District will be close to 250,000,000 bushels compared
with 282,060,000 bushels last year.
Oats.-The crop of oats in the United States will
be short this year, the September report showing a
decline of 46,920,000 bushels during the month with a
total of 1,090,282,000 bushels as the forecast for the
entire country, which is 435,773,000 bushels short of
last year's crop. This district is expected to produce,
according to these estimat es, approximately 177,144,000 bushels, a loss on account of deterioration between August 1st and September 1st amounting to
about 1,700,000 bushels. The reports indicate that the
threshing of oats is about completed in the eastern
portion of this district and yields are in many instances lighter than expected and the quality poor.
REVIEW
Cotton.-The United States Bureau of Markets
and Crop Est.i mates and the State Board of Agriculture report the Oklahoma cotton crop 48% of normal
on August 25th, or 19 points below the ten year average for that state. This figure forecasts a production of 474,000 bales. The final report for the 1920
season was 1,336,000 bales, equivalent to 500 pounds
per bale. The forecast for the United States this year
is 7,037,000 bales. The condition of the crop deteriorated in Oklahoma 20 points from the July 25th figure, due to the activities of the weevil, boll worm and
army worm. Drought and hot winds added to the
injury by insects. Bolls had opened prematurely in
many instances and considerable shedding of square '
and small bolls was reported. The south district, th e
most important in the cotton section of the state, is
the worst affected and will have barely one-fifth of
the crop.
Potatoes.- The prospects for the late Iri h potato
crop are generally fair to poor, due primarily to unfavorable weather conditions. Many poor stands and
light settings of tubers are reported. The crop in
Colorado is reported as good except in some dry la-pd
sections. In Missouri both yield and quality are poor.
In Nebraska further deterioration of the farm potat9
crop was reported at the end of August. There was
(:Onsiderable injury from grub worm. The harvest
of the late commercial ctop is in progress, but yields
are not as good as last year. The Kansas crop has
fallen below that of last year, both yield and quality
being affected more or less by the unseasonable
weather. In Wyoming the condition on September
1st was 90%. The Oklahoma condition on September 1st was 60%.
The condition of sweet potatoes is quite promising, although more rain was needed in some section.'
at the time of the report.
Sugar Beets.-While the season of hot, dry weather
in the northwestern part of the district caused deterioration in the condition of practically all crops between August 1st and September 1st, a condition of
94% of sugar beets was reported September 1st, compared with 100% condition at the corresponding date
last year. Practically the same percentage applies to
the sugar beet sections of Wes tern Nebraska and
Northern Colorado.
PRODUCTION OF CORN, WHEAT, OATS AND HAY, BY FEDERAL RESERVE DISTRICTS SEPTEMBER 1,
1921, FORECAST OF THE DEPARTMENT OF AGRICULTURE
Federal
Reserve
District
Boston ..... .
New York . . .
Philadelphia .•
Cleveland •..
Richmond ••.
Atlanta •....
Chicago .....
St. Louis ..•
Minneapolis • •
Kansas City ..
Dallas ..... .
San Francisco.
(In Thousands of Units of Measurement)
CORN (Bushels)
WHEAT (Bushels)
OATS (Bushels)
HAY, tame and wild
Sept.1
Aug.1
Est. Sept.1 Aug. l
Est.
Sept.1
Aug.1
Est. Sept. 1 Aug. 1
Forecast Forecast
for Forecast Forecast for
Forecast Forecast
for Forecast Forecast
for 1921 for 1921
1920 for 1921 for 1921 1920
for 1921 for 1921
1920 for 1921 for 1921
5,533
5,403
4,535
339
338
368
8,162
8,539
9,571
3,552
3,319
43,143
41,272
38,550 10,105 10,080
12,016
30,199
33,527
46,797
4,649
4,643
63,328
61,395
63,133 22,745 22,756
23,022
20,408
21,541
28,882
2,466
2,473
197,82f> 171,527 216,642 34,551 34,552
35,442
51,069
54,659
92,711
5,596
5,706
178,246 193,088 202,850 27,542 27,542 36,871
24,869
25,406
25,626 4,205
4,246
308,081 300,117 266,055
7,130
7,130
6,363
32,591
32,058
28,090
4,686
4,490
941,815 876,445 987,897 62,788 62,536
66,530
381,767
398,975
587,706 14,747 15,043
471,864 426,382 441,118 60,433 60,395
60,611
59,400
60,091
77,814
7,280
7,296
274,187 271,350 259,126 142,861 146,499 145,521
213,820
231,425
306,867 15,492 16,094
487,283 469,500 542,699 249,950 250,052 282,060
177,144
178,848
229,297 16,048 18,127
205,237 205,942 199,638 19,675 19,713
18,222
47,233
48,016
48,296
2,008
2,025
9,333
9,749
10,124 115,739 115,232 100,102
43,620
44,117
44,398 13,890 13,611
----
Total . . ..... 3,185,876 3,032,170 3,232,367 753,858 756,825
787,128
1,090,282
1,137,202 1,526,055 94,619
(tons)
Est.
for
1920
4,211
6,005
2,945
6,209
4,75.1
4,594
17,129
8,183
17,896
20,301
2,005
14,004
97,073 108,233
'!'HE
MONTHLY
GRAIN MARKETING.
Receipts of wheat at the four principal markets of
this district in the month of August aggregated 29,955,300 bushels, compared with 32,789,400 bushels
marketed in July and 15,942,000 bushels in August,
1920.
Combining the receipts of July and August the total
for the wheat marketing year to September 1st at
these markets was 62,744,700 bushels, against 27,943,650 bushels received in the two months' period in
1920. The increased movement for the two mont hs
of this year was 34,801,050 bushels, or 124.6%. The
heavy marketing of July and August at the four
markets represents about 25% of the 1921 wheat crop
of the Tenth Federal Reserve District, estimated by
the government at 250,000,000 bushels.
It has been estimated that since July 1st close to
50% of the surplus in the larger wheat g row ing stat es
has been shipped and the movement by the end of
September will be on the decline. Exports of wheat
in August were more than double the volume of outgoing wheat in August, 1920. Millers all over the
country were large buyers at these western markets.
There was also an increase in stocks of wheat in
elevators by the end of the month.
The movement of corn to the markets in August
was 96.3% larger than one year ago, while oats marketed registered an increase of 36.8% over the marketings in August, 1920. Rye, barley and kaffir also
were in larger volume.
The advance in wheat starting about the middle of
August continued to the middle of September. N o.
2 hard wheat, which on August 20t h w as selling at
$1.07@1.09, sold on September 2nd at $1.19,½@ l.27
and on September 15th at $1.12@1.33. Cash sales of
corn have made few changes, No. 2 white selling at
44,½c and No. 2 Yellow at 50,½c on September 15t h.
No. 2 White oats on that date old at 39@40c.
FLOUR MILLING.
Production of flour in August was maintained at
a high rate of activity with a total of 2,428,618 barrels
manufactured by mills at Kansas City, Omaha and
interior points in Missouri, Kansas, Nebraska and Oklahoma. This compares with 1,902,527 barrels produced in the month of July and 1,443,582 barrels produced in the month of August, 1920. The increase
over July is 27.6% and over August of last year
5
REVIEW
68.2%. Tht output of the mills at Kansas City and
Omaha, and also that of 82 interior mills, for August
follows:
1921
Barrels
Kansas City ...........••.. 424,000
Omaha • . . . . . . . . . . . . . . . . • . • 92,480
82 Interior Mills . • .•......... 1,912,138
1920
Percent
Barrels Increase
293,000
44.7
34,555
167.6
1,116,027
71.3
Total Production Reported •.. 2,428,618
1,443,582
68.2
Shipment of flour from Kansas City in the month
of August were 572,650 barrels compared with 445,525
barrels shipped in July and 219,050 barrels shipped in
August, 1920. The increase over July was 28.5% and
over the corresponding month last year 161.4%. Receipts of flour at Kansas City in August were 118,950
barrels compared with 73,125 barrels in July and 52,000 barrels in August, 1920. A moderate amount of
first and second clears moved to the ports for export,
while there was a fairly heavy demand for flour from
nearly all sections of this country. While the milling
situation in the Southwest has very materially improved, the industry is hoping that the wheat market
will become more settled and thus stimulate buying.
Flour prices have shown slight fluctuations, generally following the trend of the wheat market. Sept ember 10th hard winter wheat short patent flour at
Kansas City was quoted at $7.25@7.60 per barrel;
straight, $6.70@6.95; first clear, $5.50@6.00; second
clear, $4.00@5 .00.
LIVE STOCK.
A summary of the situation in the first half of September showed all classes of live stock on farms and
ranges in this district generally in good condition.
Past ures were greatly benefited by rains this montli
and are furni shing excellent grass, while field crops
are supplying an abundance of grain and other food.
Nebraska reports a g9od demand for feeder hogs. The
supply of cattle on pastures in the sand hill sections
of that state is very short. Cattle and hogs on farms
and ranges in Oklahoma are also reported short,
though live stock in that state is generally doing well.
Wyoming reports a good condition of live stock and
some shipments made to market. Grasshoppers have
caused damage both to hay crops and pastures in that
state. In New Mexico the conditions surrounding live
stock are described as excellent, but markets poor.
Kansas hog raisers are active in the use of serum i11
cholera prevention measures. Stock is doing fine in
RECEIPTS AND SHIPMENTS OF GRAIN, FOUR PRINCIPAL MARKETS, TENTH
FEDERAL RESERVE DISTRICT, AUGUST, 1921, AND 1920
RECEIPTS
St. Joseph
Wichita
Kansas City
Omaha
Four Markets
Wheat . ....... 16,721,100 8,532,000 5,912,400 4,176,000 2,391,000 1,536,000 4,930,800 1,698,000 29,955,300 15,942,000
12,000 3,536,200 1,801,100
723,000
367,500
5,000
Corn . .
900,000
345,000 1,908,200 1,076,600
136,000
3,000
3,468,400 2,535,300
Oats •.
1,839,400
899,300 1,356,000 1,478,000 . 270,000
22,000
Rye .. ..........
1,400 .....
6,000 ........... .
62,700
89,100
244,200
364,100
155,100
434:200
Earley .•
15,750 . . . .. .. . ........ . .......
487,950
226,500
231,000
127,500
241,200
99,000
Kaffir . .
1,500 ........
1,000
292,600
32,000
295,100
235,400 . .. .. . . . . .. .. . . .
267,400
SHIPMENTS
Wheat . . . .... 10,993,050 4,185,000 6,536,400 3,480,000 1,350,000
819,000 3,750,000
756,000 22,629,450 9,240,000
Corn .•
550,000
148,500
5,000
1,568,750
197,500 2,020,200 1,050,000
5,000
4,143,950 1,401,000
Oats .•
36,000
202,500
60,000
3,000
20,000
915,500 1,200,000
270,000
650,000
874,000
Rye ............
42,900
6,000 .
193,000
37,400
144,100
60,500 ........ .. . . .-....
97,900
12,250 ........ . ....... . .......
Barley •.•.....
230,450
83,200
97,500
135,000
43,200
140,700
Kaffir •••••••• 233,000
. .......
1,000
32,000
234,000
309,000
277,000
. .......
.. .
.......
. .......
........
6.
THE
MONTHLY
Colorado, though it is . reported. that there are few
contracts for feeder lambs, -prices being low to producers and high for the feeders. In Missouri the
condition of · all animals is generally healthful, but
flies ·are very annoyin•g to stock and are reported to
have reduced the milk flow:
.
The movement of cattle to the six markets of this
district has been exceptionally large this autumn, the
rec:~_ipts for August aggregating 508,052 head, which
is 82.4% .·larger than the receipts in July and 6.6 %
l~i-ger than the marketings in August of last year. A
feature .of the situation af the western markets is the
d¢arth ·of good corn-fed cattle,
which there has
at all times been a demand such as could not be adequately met. The greater volume of cattle receipts
were_light grass-fed stock. While the seasonal movement .from the ranges and pastures of Texas, Oklahoma and Kansas was on there were also liberal receipts from the northwest ranges of Montana, the
D~kot<;1,.s and from Wyoming, Colorado and Nebraska.
T'he heavy movement from the northwest was earlier
thar:i usu·at. Thus it appears there was an over-supply
of grass beef cattle on the markets in spite of a shortage of cattle in the west, prices unsettled, and a wider
spread between prices of choice . beef cattle and
the .medium to common grades. Efforts were made
to check the heavy movement of cattle to the markets
with ·r esults ~ot wholly satisfactory.
for
Receipts of calves in August were 90,416, about
51 o/o above the July receipts but 6,308 under the high
record receipts in August of last year.
·.Receipts of hogs at the six markets in August numbered 509,417. This total was 14% less than the July
receipts but it was 11.5% more than the receipts in
August, 1920. The marked curtailment of receipts
from the heavy run in July caused an advance in the
third week of August and sent prices up to the highest point of the year -to that -date; but, as a whole,
the market was irregular and at times erratic and demand unevep.:
:R¢ceipts of sheep in August were 761,849 at the
six markets compared with 424,768 in July and 837,061
in Au·g µst, 1920.
-H~rses and mules received were 4,198 head wnicb
is. 77.6% more than the receipts for July but 79.6%
below the large receipts for the corresponding month
hi' 1920.
'. The 1921 corn crop being ·r egarded as safe from
frost -damage, it was. noted that during August and in
September to tbis : date there was larger buying of
feeder stock of all kinds by corn-belt farmers. Stocker
and feeder shipments to the country from Kansas City
, RECEIPTS OF LIVE STOCK, AUGUST, 1921
Horses &
Sheep
Mules
Cattle Calves
Hogs
985
Kansas City . . .... 253,097 56,923 147,014 166,404
748
Omaha .. ........ .. 137 ,715 12,413 161,897 413,724
89,470
958
St. Joseph •...... 44,089
7,565 125,614
Denver .. •........ 20,466
3,147 . 19,926
86,719
717
2,546
60
Oklahoma City . . .... 33,588 4,646 25,651
Wichita .. . ....... 19,097 5,722 29,315
2,986
730
August, 1921 • ·.... 508,052 90,416 -509,417 761,849
4,198
2,363
July, 1921 .... ~·... 278,477 - 59,871 _593,691 424,768
August, 1920-. --~.. .476,810 96,724 - 456,800 837,061 20,589
REVIEW
in the month of August were 3,093 cars compared
with 2,354 in August, 1920, and 2,644 in 1919. The
out-go from Kansas City to the various states in August (in car-lots) was:
1921
J{ansas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 481
Missouri . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 899
Nebraska • . . . . . . . .... . . . . . . . . . . . . . . . . . . . . 170
Iowa . . ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 625
Illinois . . ...•......... , . . . . . . . . . . . . . . . . 748
Others ................................... 170
1920
786
559
68
313
267
361
SHEEP AND WOOL.
The Tenth Federal Reserve District embraces a
very large part of the mountain sections of the country where the sheep and wool industry is of the greatest importance. Utah, Idaho, Montana and Wyoming
are the leading states in the range sheep industry.
Southwestern Colorado has large range sheep it)terests
and fattening lambs is a very important industry in
Eastern Colorado. Undoubtedly this range district is
about one-third short of normal supplies, according to
a report to the Mon!hly Review from the wool grO\vers.
Range conditions have been splendid this year. The
lambs marketed from the range up to August 20th
brought fair prices and the market was more stable
than ever known before. This is accounted for by
the fact that more attention was given by the growers
to proper distribution of lambs at the different markets and sending them to the markets in an orderly
manner, and also from the fact that the packing industries generally, knowing that the range sheep men
have been hard hit, endeavored on their part to stabilize the market.
During the two weeks following this period the
receipts of all the markets in the aggregate increased
fully 50%. The consumptive demand for dressed
mutton and lambs would not take this enormous increased supply excepting at a decline that was serious
to the growers. Also, the feeder buyers, remembering the heavy losses they sustained on their operations last season, were hesitant about buying feed.ers. It is estimated that one-half million dollars was
lost to the sheep industry during these two weeks, and
it is generally known that during this two weeks'
period the market was depressed.
Improvement in the market set in September 6th and
prices advanced steadily, closing on the 9th at fully
$1.00 per hundred weight higher on fat sheep and
lambs and 50c to 75c per hundred weight higher on
feeders than the close of the prevjous week.
A great deal of attention is now being centered on
encouraging the feeding of sheep and lambs in Eastern Colorado, Kansas, Missouri, Iowa, Nebraska and
states east of the Mississippi River. Feeders are now
purchased at a little over one-half of last year's cost
and feed being bought at present prices is about one,
third of last year's cost.
The 1921 wool crop, like the lamb crop, has been
grown at an expense which, according to the wool
growers, means severe losses when sold at present
market values. However, the market is quite active
·and sheep men are somewhat optimistic concerning
the future of the industry.
THE
MONTHLY
PACKERS PURCHASES, AUGUST, 1921
Cattle
Calves
Kansas City • . ..... 102,623
26,071
Omaha . . . ....•... .' 70,331
4,590
St. Joseph . . . . . . . . 26,107
6,487
Denver • . . . . • • . . . • 8,888 ' 1,894
Oklahoma City • . . . . 23,616
3,092
Wichita . . . . . . . . . • 6,326
2,218
August, 1921 ...•.. 237,891
44,352
July, 1921 .... . .... 169,844
43,832
August, 1920 ...... 224,703
56,784
Hogs
108,046
122,064
105,568
19,240
22,955
28,537
406,410
476,813
345,433
Sheep
113,365
213,658
62,169
15,317
1,801
702
407,012
269,526
322,128
MEAT PACKING.
Packers report a general improvement in their business for the summer extending over a period of three
months after several months of depression. Their
operations during the month of August were up tu
the usual volume for that month. The August slaughter of cattle at Kansas City, Omaha, St. Joseph, Denver, Oklahoma City and Wichita was 237,891 head,
which is 68,047 more than in July and 13,188 more
than in August of last year. The slaughter of calvec;
was 44,352 for the month, about the same as in July
and 12,432 below the record of a year ago. Purchases
of hogs for slaughter totaled 406,410 for August, this
number being 70,403 less than the slaughter in July
and 60,977, or 17.6% more than the slaughter in the
corresponding month of 1920. The slaughter of sheep
was exceptionally heavy, the total for the six packing
centers aggregating 407,012, compared with 269,526
in July and 32~,128 in August of last year.
The excessive supply of grass cattle at practically
all times had a tendency to unsettle the £re h meat
market, but with fairly good domestic trade and fair
export shipments packers made the best of the situation.
Stocks of meat in storage at Kansas City on Augu 't
31st amounted to 38,914,300 pounds, which was 17,697,000 pounds less than at the end of July and 5 915,000 pounds less than at the end of August, 1920.
PETROLEUM.
Development operations have been curtailed in recent months to a point where fewer wells are now
drilling than at any other time in more than three
years, yet only a · slight reduction in the output of
·rude oil in Kansas and Oklahoma has resulted . .
Preliminary reports of an unofficial character from
the various fields show that not since the beginning
of May has crude oil production in Kansas and Okla.home fallen below 400,000 barrels per day. The output
for the two state in August was a little above 13,000,000 barrels, which compares with a total of 13,598,000
barrels officially reported for July by the U. S. Geological Survey. It is about 1,000,000 barrels more than
the production in August, 1920. In Wyoming and
Colorado production in August was about 40,000 barrels per day. The Geological Survey figures for. July
placed the total for the·s e two mountain states at 1,151,991 barrels for that month.
The -unofficial reports from Kansas-and Oklahoma,
received from the fields, place the e timated d~ily av-
7 ·
REVIEW
erage production of crude oil in barrels of 42 gallons
for the weeks mentioned as follows:
Daily Av.1921
Week Ending
Barrels
August 19 • . ................... 422,000
August 26 . . .......... .......... .421,000
September 3 ................. .421,100
September 10 • . ....•.•...•.•... 418,000
~eptember 17 ................. .419,000
Daily Av.1920
Barrels
399-,000
398',500
401,500
400,000
398,400
August field reports show 480 wells completed in
Kansas, Oklahoma and Wyoming with an initial daily
production of 69,787 barrels. Compared with, developments in July this is a decrease of 160 completed wells
and a decrease of 8,210 barrels daily new pro~uction;
compared with August, 1920, the decrease was 875
completed wells and 30,156 barrels daily new production. New work under way in the three states at the
end of August was represented by 2,020 rigs and wells
drilling against 2,116 at the end of July and 3,065 at
the end of August last year. Following is a summary
of development operations in the three states for the
month of August:
Wells
Completed
Kansas . . . . . . . .... .. 69
Oklahoma . . . . . . . . 386
Wyoming.. . . .. . .. 25
August, 1921 . . . . . . 480
July, 1921 . . . . . . . . 640
August, 1920 ...... 1,355
Barrels Daily Rigs and Wells
New Production
Drilling
6,376
213
55,011
1,180
8,400
627 .
I
69,787
77,997
99,943
2,020
2,116
3,065
Stocks of crude oil in the United States at the encl
of July, including Mexican crude held by importers.
aggregated 167,200,000 barrels, according to the last
official report of the U. S. Geological Survey. This · is
equivalent to about 125 days' supply for the Unite<l
States. The report shows that 98,517,000 barrels were
held by refineries and on tank farms in the Mid-Continent District, of which 61,667,000 barrels, or 62.5%
were held in Kansa and Oklahoma, the remainder in
North and Central Texas.
COAL MINING.
Production of bituminous coal in the United tates
averaged 1,279,000 tons for the 27 working days of
August and the total output for the month was
re-
ported by the United States Geological Survey as 34,538,000 tons. Although an increase of .4,15.:>,000 ton,·
over the revised figures for July, this was . far .befow
normal for Augnst. In the eight . years preceqing, a
period over which record of monthly output extendf,
the lowest figure for August occurred in 1914, yet even
that month shows 37,751,000 tons, or 3,213,000 . ton.
more than did August, 1921. The total proquction
for the calendar_year to the end of August was 261,000,000 tons, which co~pares witp. 352,P00,OOO_~on f2r
the same period in 1920 and 323,000,000 ton · <1:. . the
average for 1913 to 1920.
··
~. ··
Operating conditions in the mining section of the
Tenth Federal Re erve District show no material improvement. The percent of full time· output produced
in the states of this district. in the ·. month of .Augus:t,
as reported weekly, . was: Colorado 48.5% ;· Xansas
62.1 %, Missouri 43.9%, Okl~homa 56.4%, average for
the district 52.7% of full time output. . The various
reasons assigned· for losses from full- operating. c~pac-
8
THE
MONTHLY
ity during the month of August are shown in percentages for each state as follows:
Colo.
Kans.
Mo.
Okla.
Transportation
Disability . . . . . . . 1.0%
Labor shortage . . . . .
Strikes . . . . . . . . ..... .
Mine disability . . . . . 2.4
No market •........ 37.6
2.6%
7.
2.4
1.0
26.
.6%
.7
2.6
8.0
44.5
.6%
.3
6.4
36.4
Dist.
No. 10
1.2%
.4
1.2
4.5
34.6
During the month of September to this date there
has been a further slowing down of operations in thi?
district, due to labor trouble and no market for the
product. It is noted that the closing down of many industrial plants has shut off the demand for slack coal,
while the low price of fuel oil is causing many other
plants and some of the railroads to change from coal
to oil for fuel.
ZINC AND LEAD MINING.
A review of the Joplin mining district for August,
1921, indicates that shipments and market conditions
for the month showed practically no change as to
zinc ores. The zinc ore shipped amounted to 19,975
tons, an average of 4,993 tons per week. The average
price for this tonnage for the month was $20.81. There
were no calamine shipments, and the market closed
dull and with small demand. Surplus stocks showed
a gain of 1,000 tons, making the total in the bins of
the ore producers at the end of the month 76,000 tom.
Shipments of lead ores aggregated 3,845 tons, an
average of 961 tons per week. The average price for
the month was $50.00 per ton. This is an advance of
$2.50 per ton over the highest price paid during July.
In addition ore producers were anticipating a further
advance for the month of September for this class of
ores. The demand remained unchanged, and surplus
stocks were the same at the end of the month as the
previous month.
A survev of labor conditions at the end of the
month disc"'losed the fact that in Missouri there were
only 270 miners working underground, while there were
800 in Kansas and 2,200 in Oklahoma, a total of slightly over 3,000 men, as compared with 12,000 to 15,000
during the period of 1915 to 1917. There were but
35 mills working out of 208 in the district.
Colorado Metal Mines.-Telluride and Cripple
Creek are the only ip.etal mining districts where activity is anything like normal. In other districts operations are at a low state as a result of the generally
depressed condition of the metal markets.
BUILDING.
Reports from 16 cities of this district for August
show that permits were issued for the, erection of 2,762
buildings at an aggregate cost of $7,661,119. This
is a gain of 54.8% in the number of permits and 93.8%
in the estimated cost over the record for the same
cities in August, 1920. It is also the largest percentage
of gain that has been shown in any month this year
over the corresponding month last year. As an indication of the increase in building activity it is noted
that the August reports from cities of this district
show an increase of 17% in the number of permits
issued and 35% in the estimated cost of the buildings
proposed over the record of July. The reports show
REVIEW
phenomenal gains in some of the cities. The reports
for the month of August follow:
Permits
Kansas City, Mo.......... 471
Wichita, Kans. . . . . . . . • . . 286
Pueblo, Colo. . . . . . . . . . . . • 192
Oklahoma City, Okla.. . . . . 297
Denver, Colo. . . . . . . . . . . . . 526
Tulsa, Okla. . . . . ........... 124
Pueblo, Colo. . . . . . . . . . . ... 192
St. Joseph, Mo. . . . . . . . . . . 76
Lincoln, Nebr. . . . . . . . . . . . 96
Kansas City, Kans. . . . . ..... 96
Topeka, Kans. . . . . . . . . . . . 108
Casper, Wyo. . . . . . . . . . . . . 87
Muskogee, Okla. . . . . . . . . . 41
Okmulgee, Okla. . . . . . . . . . 27
Colorado Springs, Colo.. . . . 60
Leavenworth, Kans. . ..... . .
6
Joplin, Mo. . . . . . . . . . . . . ... 16
Estimated
Value
$2,137,950
1,506,398
236,270
791,076
751,450
245,985
235,270
207,276
185,376
121,450
111,090
107,750
99,830
68,250
23,245
14,300
9,450
Pct.
Change
+132.4
+481.4
+846.6
+ 77.2
+114.8
- 60.2
+485.5
+389.4
- 71.3
- 41.1
58.6
-19.
+177.7
- 26.1
- 71.9
+376.6
- 33.1
Total August, 1921. ....... 2,762
Total August, 1920 ........ 1,786
$7,661,119
3,953,783
+ 93.8
+
The foregoing reports show that the largest percent
of gain in building activity in the United States during August was in this section. An encouraging sign
in connection with the August activity is the heavy
increase in the number of homes for which permits
were issued.
Statement of Condition
FEDERAL RESERVE BANK OF KANSAS CITY
Including Branches
At Close of Business September 14, 1921
RESOURCES
Gold Coin and Certificates ................... $ 2,231,102.50
Gold Settlement Fund F. R. Board........... 39,986,647.49
Gold with Federal Reserve Agent........... 36:332,345.00
Gold Redemption Fund . . . . . . . . . . . . . . . . . . . .
3,216,629.75
Legal Tender Notes, Silver, Etc.. . . . . . . . . . . . .
4,650,836.85
Bills Discounted:
Secured by Govt. Obligations ........ ..... . 18,207,487.77
All Other ........................... . 47,710,837.36
460,200.00
Bills Bought in Open Market ............... .
8,867,860.00
U. S. Bonds and Notes ..................... .
7,320,000.00
One Year Gert. of Indebtedness (Pittman Act)
3,454,801.19
Bank Premises . . . .......................... .
915,590.00
5% Redemption Fund Against F. R. Bk. Notes
Uncollected Items ....................... . 49,397,837.21
470,309.95
All Other Resources ....................... .
Total Resources . . .................. . .. $223,222,374.07
LIABILITIES
Capital Paid In .............................. $ 4,634,050.00
Surplus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,330,167.01
Reserved for Government Franchise Tax.....
1,735,033.47
Deposits:
8,015,721.87
Government . . ............ ............. .
Member Banks, Reserve Account ....... . 67,069,015.60
640,583.79
All Other ............................ .
F. R. Notes in Actual Circulation ........... . 74,427,280.00
F. R. Bank Notes in Actual Circulation ..... . 12,844,900.00
Deferred Availability Items ................ . 43,448,559.92
1,177,062.41
All Other Liabilities . ...................... .
Total Liabilities ....................... $223,222,374.07
OTHER TOTALS
Total Gold Reserves ........................ $ 81,766,624.74
Total Earning Assets. . . . . . . . . . . . . . . . . . . . . . . 82,566,375.13
Total Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75,725,321.26
Ratio of Total Reserves to Deposit and F. R.
Notes Liabilities Combined..............
57.5%
Ratio of Gold Reserves to F. R. Notes in actual
circulation after setting aside 35% against
Deposit Liabilities . . . . . . . . . . . . . . . . . . . .
80.4%
CLEARINGS
Total Clearings for Week ................... $200,792,123.00
Total Number of Items Handled.............
1,164,913
@FedFRASER