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THE MONTH LY REVIEW Of Agricultural, Industrial, Trade, and Financial Conditions in the Tenth Federal Reserve District FEDERAL Vol. 21 RESERVE BANK OF KANSAS CITY, MISSOURI, SEPTEMBER AI S in late August and the forepart of September, while too late to alleviate materially the severe effects of drought on crop production in the District this year, improved somewhat the outlook for fall pastures and late forage crops, relieved the shortage of stock water over a wide area, and enabled farmers to proceed with fall plowing and the seeding of winter grains .under more favorable conditions than had obtained previously. The need for more moisture, however, was general and in an extensive area centering in eastern Oklahoma, where the continued hot, dry weather had resulted in a marked decline in the condition of cotton and other crops in August, the drought had not yet been relieved. Heavy rains in Colorado and cooler weather in Wyoming and Nebraska largely accounted for the slight improvement in crop prospects in the northern and western portions of the District between August 1 and September I. Marketings of the principal grains declined in August, partly owing to seasonal influences, but the volume of wheat receipts ·was far below normal, reflecting to some extent the tendency of growers to withhold supplies for live stock feeding, and the volume of corn receipts continued small. Marketings of live stock generally increased seasonally, while hog supplies were seasonally smaller than in July and continued below normal. Forced liquidations of live stock, occasioned by the prospective small production of feed grains and by advancing feed costs, have not been as extensive as in 1934 or at as low price levels as prevailed two years ago. Prices of grains, cattle, and hogs advanced in August, while lamb prices declined. Retail distribution at thirty-two department stores in the · District increased by somewhat less than the usual seasonal amount in August and wholesale distribution showed a slight decrease contrary to the usual trend, although increasing 5.2 per cent as compared to a year ago. Lumber sales increased moderately, but building operations were less active. The volume of payments by check was seasonally smaller than in July and was 15.2 per cent greater than in August, 1935. The production of flour, crude petroleum, and bituminous coal exceeded the levels of a year ago despite a contraseasonal decline in flour production during the month. Crude oil production continued at a high level although it normally declines at this season. Shipments of zinc ore increased and shipments of lead ore decreased, with shipments of both zinc and lead below a year ago. The slaughter of cattle and calves was at a high level during August but the slaughter of hogs and sheep was substantially below normal for the month. R Member Bank Operations Loans and discounts of fifty-two reporting member banks in the Tenth District, following an increase of 6.9 per cent in July, showed little change between August 5 and September 9 at which time loans and discounts were 15.1 per cent greater than on September II, 1935, reflecting principally an increase KANSAS CI TY No. 29, 1936 10 THE TE TH FEDERAL RESERVE DISTRICT In Percentages of Increase or Decrease 8 Months 1936 Aug. 1936 compared to compared to Banking July 1936 Aug. 1935 8 Months 1935 +14.r Payments by check, 29 cities.................. - 9.2 +15.2 +12.3 Federal Reserve Bank check collections -10.8 + 4.5 - 3.7 Business failures, number........................ +28.0 +28,0 +20.z Business failures, liabilities...................... + 3.8 +39.1 Loans, 52 member banks·--····················· + 0.1 +15.1 Investments, 52 member banks.............. - 5.7 + 6.4 Adjusted dem. deps., 52 member banks + 1.1 + 9.4 Time deposits, 52 member bank.s·---····· - 0.1 - 0.1 Savings deposits, 45 selected banks·--··· + o.6 + 3.3 Savings accounts, 45 selected banks .. -.. Even + 2.5 Distribution + 9.7 Wholesalers' sales, 5 lines combined_ .... - 3.6 + 8.o Retailers' sales, 32 department stores._. +16.1 +34.S Lumber sales, 158 retail yards ............... . + 7.8 - 2.0 Life insurance, written ............................. . - 13.8 Construction -12.4 Building con tracts awarded, value. ___ ... - 52.6 +31.4 Residential contracts awarded, value.... - 2.5 +127.6 Building permits in 18 cities, value........ +14.1 Production 1 7·3 + 2.4 Flour--······················································· -I.7 + 8.7 +1 5-5 Crude petroleum·--··································· + 4.4 +17.1 +18.7 Bituminous coal.. ..................................... . + 1 9-5 +22.1 -15.8 Zinc ore (shipped) Tri-State district ..... . + 5.1 +31.9 -38.6 -39.6 Lead ore (shipped) Tri-State district.... 2 5·5 +28.6 Cement·-····················································· + o.6 Grain receipts, 5 markets -53.I Wheat.-....................................................... -79.8 +160.6 Corn ........................................................... . -56.7 Oats.---······················································· -12.1 Live stock receipts, 6 markets +14.'l +7-4 Cattle ......................................................... . +28.9 - 2.7 +2 3.9 Calves·--····················································· +51.1 +27.6 +46.5 Hogs ...........................................................• -18.6 - 4.8 - o.6 Sheep ......................................................... . +16.1 -11.4 Horses and mules ..................................... . +65.9 Meat packing, 6 markets +20.8 +38.8 Cattle.......................................................... + 2.3 +3o.9 Calves·-······················································· +2 9-7 +39.3 Hogs ........................................................... . -18 .8 - 9.8 Sheep ......................................................... . + + in commercial loans during the year. Investment holdings on September 9 had declined 5.7 per cent from the high level of the year five weeks earlier, reflecting chiefly a reduction in holdings of United States Government direct and guaranteed obligations, but were 6.4 per cent greater than a year ago, reflecting principally increases in holdings of direct Government obligations and in holdings of other securities. Reserve balances of these reporting member banks increased further and on September 9 were but slightly below the record high level reached on August 26 and 43.5 per cent above the level of September II, 1935. Adjusted demand deposits, which increased to ~ new high level for the year on August 12, subsequently declined and at This Copy Released For Publication In Afternoon Newspapers, September 29. THE MONTHLY REVIEW '2 the close of the five-week period were only slightly larger than on August 5 but were 9.4 per cent greater than one year earlier. Time deposits showed little change. Balances held for domestic banks declined between August 5 and September 9 but had increased 20.4 per cent during the year. The principal resource and liability items of the consolidated weekly condition statements of the fifty-two reporting banks, for the three dates of comparison: Sept. 9, 1936 Loans and investments-total.. Loans and discounts-total... ..... Secured by stocks and bonds All other loans and discounts Investments-total. ___ ··············· U. S. securities direct................. . Obligations fully guaranteed by the U. S. Government.. Other securities......... ·-············ Reserve with F. R. Bank .......... Demand deposits-adjusted ...... Time deposits ............................. . U.S. Government deposits....... . Inter-bank deposits: Domestic banks....·-················Foreign banks .......................... 'f,677,575,ooo 242,491,000 51,366,000 191,125,000 435,084,000 252,408,000 Aug. 5, 1936 Sept. II, 1935 'f,7o3,37 2,ooo 'f,619,810,000 242,215,000 210,715,000 51,388,000 47,040,000 190,827,000 163,675,000 461,157,000 4o9,o95,ooo 234,557,000 270,564,000 49,248,000 133,428,000 I 54,528,000 478,856,000 145,962,000 22,397,000 56,088,000 128,443,000 473,5°3,000 146,083,000 22,772,000 52,283,000 122,255,000 I 07, 704,000 437,5 27,000 146,074,000 10,806,000 410,544,000 174,000 4 29,4 25,000 159,000 341,048,000 163,000 134,505,000 Reserve Bank Operations Holdings of bills discounted for member banks and holdings of bills purchased continued in small volume during the five weeks ended September 9. Industrial advances increased fractionally between August 5 and September 9 while commitments to make industrial advances declined. The total of loans and commitments on September 9 was virtually unchanged from that five weeks earlier and was substantially below the total on September n, 1935. Holdings of United States Government securities were unchanged during the five weeks at a level l 5.1 per cent above that of a year ago. Federal Reserve note circulation reached a new high level on September 9 which was 1.4 per cent above that of August 5 and 19 per cent above that of September 11, 1935. Member banks' reserve deposits increased further to $229,974,032 on August 26 but subsequently declined slightly, although recording an increase of 16.5 per cent for the five-week period and of 28.2 per cent as compared to the corresponding date of last year. The principal resource and liability items of the weekly condition statements of the Federal Reserve Bank of Kansas City and branches, for the three dates of comparison: Sept. 9, 1936 'f,269,724,827 59,714 87,128 9°5,4 15 Aug. 5, 1936 Sept. II, 1935 $259,566,943 'f,207,743,830 181,588 87,785 87,062 126,464 1, 134,97 2 897,898 Total reserves .. ............................ Bills discounted._ ......................... Bills purchased ........................... . Industrial advances.................... Commitments to make industrial advances.......................... 390,077 396,517 U. S. securities............................ 122,927,000 122,927,000 Total bills and securities............ 123,979,257 124,180,745 Total resources............................ 431,759,110 422,699,879 F. R. notes in circulation.......... 155,908,025 153,704,125 Member banks' reserve deposits 227,779,51 8 195,477,917 The discount rate of the Federal Reserve Bank of Kansas City, of paper and all maturities, remained unchanged at 2 per cent. 1,174,500 106,844,200 108,287,224 352,925,000 130,975,410 177,636,562 on all classes Reserve Bank Check Collections The dollar volume of check collections through this bank and branches declined somewhat more than season ally from July to August but exceeded the total for August of last year by 4. 5 per cent, with the number of items handled showing an increase of 8.1 per cent. Check collections for the first eight months of 1936 increased 12.3 per cent in doll ar volume and 14 per cent in the number of items compared to the first eight months of 1 935· Check collections through the Federal Reserve Bank of Kansas City and branches at Omaha, Denver, and Oklahoma City: AMOU NT ITEMS August ............. . July._................ . Eight months .. 1936 5,7°7,494 6,387,366 47,670,632 1935 5,280,320 5,467,895 41,833,556 1936 1, 934, 12 5,000 1,047,059,000 7,442,818,000 1 935 1, 894,135,000 902,039,000 6,626,836,000 Bank Debits Banks in twenty-nine cities in the District reported debits to individual accounts during the five weeks ended September 'l as 9.2 per cent smaller than in the preceding five-week period but 15.2 per cent greater than in the corresponding five weeks in 1935. Check payments during the first thirty-five weeks of this year increased 14.1 per cent compared to the total for the first thirty-five weeks of last year. PAYMENTS BY CHECK FIVE WEEKS ENDED Albuquerque, N. M.·-················· 'f, Atchison, Kans.·---····················· Bartlesville, Okla .. _..................... Casper, Wyo ...·-··························· Cheyenne, Wyo ........................... Colorado Springs, Colo .. ........... . Denver, Colo ..... .......................... *Emporia, Kans .......................... . Enid, Okla.................................. . Fremont, Nebr...·-······················· Grand Junction, Colo ................ . Guthrie, Okla ............................... Hutchinson, Kans ...................... . Independence, Kans .................. . Joplin, Mo .................................. . Kansas City, Kans .................... . Kansas City, Mo ..- ..................... Lawrence, Kans ........................... Lincoln, Nebr....- ......................... Muskogee, Okla ........................... . Oklahoma City, Okla ................. Okmulgee, Okla .......................... . Omaha, Nebr............................... Pittsburg, Kans .......................... . Pueblo, Colo.·--··························· Salina, Kans ................................. St. Joseph, Mo .. _......................... Topeka, Kans.·--- ·······--·············· Tulsa, Okla.·--····························· Wichita, Kans ............................. Sept. 2, 1936 14,433,000 1, 4,373,000 29,257,000 6,328,000 8,974,000 16,749,000 I 86,240,000 Sept. 4, 1935 11,408,000 3,828,000 25,010,000 5,191,000 8,109,000 14,795,000 I 58,000,000 Per cent Change +26.5 +14.'l +17.0 +21.9 +10.7 +13.2 +17.8 3,567,ooo 14,421,000 3,205,000 3,883,000 1,748,000 16,945,000 2,850,000 10,170,000 14,379,ooo 37 5,498,ooo 3,979,000 31,884,000 8,375,ooo 101,331,000 2 ,755,000 8 I ,48 l ,ooo 4,086,000 16,448,000 10,549,000 34,076,000 21,143,000 144,571,000 55,086,000 I 13,091,000 2,734,000 2,840,000 1,702,000 16,493,000 2,572,000 9,587,ooo II,231,000 343,uS,ooo 3,264,000 27,400,000 7,204,000 88,596,000 2,825,000 153.197,000 3,483,000 12,655,000 10,079,000 3o,972,QOO 18,944,000 IIl,748,000 50,342,000 Total 29 cities, 5 weeks ...... .... 1, 1,325,217,000 1, 1,150,478,000 Total 29 cities, 35 weeks......... . 8,913,856,000 7,814,831,000 U. S. 273 ci ties, 5 weeks .. ....... . 39,832,149,000 35, 294,978 ,ooo U. S. 273 cities, 35 weeks ......... . 299,983,454,000 263,119,656,000 *Not included in totals. +10.2 +17.2 +36.7 + 2.7 + 2.7 +10.8 + 6.1 +28.0 + 9.4 +21.9 +16.4 +16.3 +14.4 - 2.5 +18.5 +17.3 +30.0 + 4.7 +10.0 +11.6 +29.4 + 9.4 +15.2 +14.l +12.9 +14.0 Savings Savings deposits at forty-five selected b_anks in leading cities of the District showed a slight increase between August I and September 1 while the number of savings accounts showed little change. Savings deposits on September 1 were 3.3 per cent and the number of accounts 2.5 per cent greater than on September 1, 1935. Savings accounts and savings deposits reported by the forty-five banks: Savings Accounts September 1, 1936 .... ..............:............... August 1, 1936........................................ September l, 193 5.. .. .... .......................... 414,490 414,380 404,309 Savings Deposits $I 28,662,108 127,862,084 124,581,314 Business Failures Commercial failures in the Tenth District during August were slightly larger in number and in the amount of liabilities involved than in July or in August of last year but continued at the low THE MONTHLY REVIEW Stores Reporting Kansas City.... 4 Denver.-........... 4 Oklahoma City 3 Tulsa................ 3 Wichita ....·-······· 3 Other cities ...... 15 3 RETAIL TRADE AT 32 DEPARTMENT STORES IN THE TENTH FEDERAL RESERVE DISTRICT In Percentages of Increase or Decrease except Rate of Turnover AMOU NTS COLLECTED SALES STOCJC.S (RETAIL) ACCOUNTS RECEIVABLE Aug. 1936 Year 1936 Aug. 31, 1936 STOCK T URNOVER Aug. 31, 1936 Aug. 1936 compared to compared to compared to August Y car compared to compared to July 1936 Aug. 1935 Aug. 1935 Year 1935 July31,1936 Aug.31,1935 1936 1935 1936 1935 Jul y31,1936 Aug.31,1935 -21.3 + o.6 - 8.3 + 5.9 + 9.7 + 5.7 .29 .34 2.42 2.23 + o.6 - o.8 -13.6 +10.0 + 8.6 + 11.5 + 6.1 +10.2 .34 .35 2.46 2.36 + 2.6 + 4.8 - 24.6 - 0.9 + 4.7 + 8.6 +25.8 +10.9 .35 .36 2.78 2.70 + 0.2 + 9.3 - 17.5 +12.2 + 7.3 + 10.3 . + 19.7 + 9.8 .34 .34 2.82 2.75 - 4.4 - 3.8 - 2.7 + 4.6 + 34.4 -j-I'l.4 .28 .28 '2.21 '2.15 - J .J - l.O - 24.7 - 3.1 - 7.8 + 6.o +16.0 + 5.9 .22 .24 2.00 1.89 - 4.6 - 1.6 - 19.9 + 2.'2 TotaJ... __ ··········· 32 - o.z + 8.o + 13.3 + 8.1 .29 .32 2.38 2.25 - 0.7 + 1.9 - 18.6 NOTE: Ratio of collections during month to regular accounts outstanding end of preceding month: August 41.8; July 45.1; August 1935, 42.0. level of business insolvency which has prevailed generally the past two years. The number of failures for the first eight months of 1936 was below that for the same period in 1935 but there was a slight increase in the amount of liabilities involved during the eight months. Business failures reported by Dun and Bradstreet, Incorporated: August 1936.............................. July 1936.................................. August 1935·-··-······················· Eight months 1936·-··············· Eight months 1935.................. UNITED STATES Number Liabilities 655 '$ 8,271,000 639 9,904,000 884 13,266,000 6,608 105,348,000 7,859 118,756,000 TE~TH DISTRICT Number Liabilities 32 '$ 192,000 25 185,000 25 138,000 286 3,260,000 297 2,712,000 Life Insurance Sales of new paid-for ordinary life insurance in the seven states in the District declined further during August and fell slightly below the total of sales in August, 1935. Sales for the first eight months of the year decreased 2. per cent compared to sales in the first eight months of 1935. Life insurance sales reported to the Life Insurance Sales Research Bureau by companies representing 90 per cent of the total legal reserve ordinary life insurance outstanding in the United States: Colorado·-····································· Kansas ......................................... . Missouri ....................................... . cbraska ...................................... cw Mcxi co·--- ··························· Oklahoma... -................................ . Wyoming..................................... . Seven states·--····························· United States ............................... . August 1936 .,. 4,415,000 5,101,000 12,793,000 3,844,000 758,000 4,754,000 817,000 J 32,482,000 451,612,000 July 1936 .,. 4,374,000 5,439,000 15,326,000 4,533,000 1,054,000 5,858,000 1,097,000 .,. 37,681,000 512,738,000 August 1935 .,. 4,107,000 4,757,000 13,680,000 3,958,ooo 631 ,000 5,026,000 856,000 f, 33,015,000 456,397,000 Trade RETAIL: The dollar volume of sales at thirty-two reporting department stores in leading cities of the District increased by somewhat less than the usual seasonal amount during August and was fractionally smaller than in August, 1935, reflecting in part the continuation of high temperatures this year past the time when more seasonable weather for distribution prevailed a year ago. The decline in sales as compared to last August was the first decrease recorded this year and reduced the cumula- Stores Reporting Dry goods........................ 5 Groceries.......................... 5 Hardware·- --··················· 9 Furniture.......................... 3 Drug•·························-····· 7 + 4.6 tive gain for the first eight months of 1936 to 8 per cent over sales in the first eight months of 1935. Stocks of merchandise increased 13.3 per cent from July 31 to August 31, or somewhat more than the usual amount, and were 8.1 per cent larger than a year ago. August collections on regular thirty-day accounts averaged 41.8 per cent of amounts outstanding at the close of the preceding month compared to a ratio of 45.1 per cent in July and 42..0 per cent in August of last year. Installment collections averaged 13.8 per cent in August, 14.2. per cent in July, and 14.6 per cent in August, 1935. WHOLESALE: The combined sales volume of five representative lines reporting to this bank indicated a slight slackening in wholesale distribution in the District from July to August contrary to seasonal trends but an increase of 5.2 per cent over last August. Sales of dry goods and furniture increased during the month, while there was a decrease in sales of groceries, hardware, and drugs. All lines but drugs showed an increase over a year ago. During the first eight months of the year, the combined sales volume increased 9.7 per cent, reflecting an increase in sales of dry goods of 4.7 per cent, groceries 8.6 per cent, hardware 14 per cent, furnit~re 17.6 per cent, and drugs 8.6 per cent compared to the first eight months of 1935. Stocks of merchandise were increased 4.5 per cent during August and at the close of the month were approximately the same amount greater than one year earlier. There was a fractional decrease in hardware stocks during the month but other lines showed increases and only furniture and groceries failed to show an increase in stocks during the year. Lumber Sales of lumber in board feet at I 58 reporting retail yarda in the District increased further during August and dollar sales of all materials, which had shown a decline the past three months, increased slightly. Board feet sales were 2.5.7 per cent greater than in August of last year and during the first eight months of 1936 increased 34.8 per cent as compared to the first eight months of 1935. Stocks of lumber at the close of August were slightly smaller than one month earlier but were somewhat larger than a year ago. Outstandings increased moderately from July JI to August 31 when the total was 2.3.2. per cent greater than on Auaust 31, 1935. Collections declined in August, averaging 41.5 per WHOLESALE TRADE IN THE TENTH FEDERAL RESERVE DISTRICT In Percentages of Increase or Decrease SALES OUTSTANDIN GS AMOUNTS COLLECTED Aug. 1936 Aug. 31, 1936 Aug. 1936 compared to compared to compared to July 1936 Aug. 1935 July 31, 1936 Aug. 31, 1935 July 1936 Aug. 1935 +10.8 - 6.2 + 9.0 +18.4 +2 4.7 + o.5 - 5.7 +14.8 + 3.4 + 0.2 + 6.7 +17.5 - 18.6 +12.1 -15.5 + 1.3 - 5.7 - 5.6 - o.8 +17.8 +15.3 +16.1 - 8.6 + 0.3 - 5.8 - 3.1 + 0.4 - 1.9 STOCKS Aug. 31, 1936 compared to July 31, 1936 Aug. Jt, 1935 + 6.3 +14.8 + 7.8 - 5.:1 - 0.5 + 3.6 + 1.8 +10.7 + J.I - 6.6 THE MONTHLY REv1iw 4 cent of amounts outstanding at the close of the preceding month compared to a ratio of 46.4 per cent in July and of 42.4 per cent in August of last year. August business at the 158 reporting yards in percentages o_f increase or decrease: Sales of lumber, board feet ............................... . Sales of all materials, dollars ........................... . Stocks of lumber, board feet.--....................... .. Outstandings, dollars .......................................... August 1936 compared to July 1936 August 1935 + 7.8 + 25.7 + 2.9 +22.9 - l.4 +13.4 + 5.9 +2 3•2 Building The value of residential construction contracts awarded in the Tenth District in August, according to statistics compiled by the F. W. Dodge Corporation, was slightly smaller than in July but was somewhat larger than in any August since 1931. The total value of construction contracts, however, was down sharply in August and was below that in the same month of the two preceding years, although increasing 64 per cent during the first eight months of 1936 compared to the first eight months of 1935. The cumulative value of residential awards has increased 60.8 per cent this year compared to last year. The value of construction contracts awarded, as reported by the F. W. Dodge Corporation: Aug. 1936.__ . July 1936...... Aug. 1935·-··· 8 Mos. 1936.. 8· Mos. 1935.. RESIDENTIAL Tenth District United States 1, 2,213,300 1,100,522,500 2,269,500 72,093,700 1,684,571 40,528,300 17,873,971 507,510,800 11,n6,11 I 297,149,400 TOTAL Tenth District United States 1, 6,198,200 $ 275,281,400 13,082,000 294,834,500 7,076,281 168,557,200 78,686,6o4 1,799,918,800 47,993,633 1,024,716,400 Construction permits and the estimated cost thereof in eighteen cities in the District increased during August and were at _the highest level for the month since 1929 in the number of permits issued and since 1931 in estimated expenditures. The number of permits issued during the first eight months of this year .was 14.9 per cent and the value was 71.2 per cent greater 'than during the first eight months of 1935. BUILDING PERMITS IN TE TH DISTRICT CITIES PERMITS ESTIMATED CosT 1936 1935 1936 1935 ' Albuquerque, N. M ....-...........:... 1, 198,239 1, 6o,015 85 85 Cheyenne, Wyo ........................... 26 58 37,4 20 57,54 1 Colorado Springs, Colo .. -........... 61,140 14,247 49 35 Denver, Colo............................... 1,893,37 2 326,923 575 353 · Hutchinson, Kans ....................... JIO 61,865 85 33,700 Joplin, Mo ................. 17,250 19 15 24,990 Kansas City, Kans ..................... 26,185 36 16,315 39 _Kansas City, Mo..- ..................... 188 259 233,200 337,3 00 Lincoln, Nebr..-........................... 141 69,280 123,568 144 Oklahoma City, Okla ................. 173 169 1,042,396 250,315 Omaha, Nebr.... 147 107 227,152 144,335 Pueblo, Colo,. __ ........................... 16,994 39 33 7,295 Salina, Kans .. 18 27,241 17 18,391 Shawnee, Okla ............................. 4,025 14,7 25 9 9 St; Joseph, Mo,.--....................... 126,280 28,840 41 23 Topeka, Kans·---......: ...... 88 135,375 56 70,520 Tulsa, Okla ..__ 11 7,4 15 85 94 197,553 Wic)tita, Kans ............................. 188 181,187 150 143,908 ---- Total 18 cities, August·-·-········· 2,033 1,715 Eight months.--........................... 13,990 12,171 1, 4,409,397 1, 1,937,100 26,716,346 15,6o8,287 Flour Milling Flour milling operations in the District, which usually increase somewhat in August, continued at about the same rate as in July and production declined slightly with one less producing day. Milling operations averaged 70.9 per cent of fulltime capacity in August, 69.5 per cent in July, and 57.9 per cent in August, 1935. Production was 2.1 per cent above the average for August during the past ten years and exceeded the output a year ago by 17.3 per cent. Cumulative production for the year · to September I increased 2.4 per cent compared to the total for the first eight months of last year. Flour production at the principal milling centers of the District, as estimated from the weekly reports of southwestern mills to the Northwester~ Miller: Atchison._ ..................................... Kansas CitY···-······.. :······.. ·......... .. Salina ........................................... . Wichit_____ ..................... .. Outside._ ....................................... August 1936 Barrels 135,190 July 1936 Barrels 149,778 210,670 222,841 1,102,385 211,379 215,866 529, 153 505,734 1,155,666 August 1935 Barrels 100,403 474, 272 161,032 180,698 96o,013 TotaL .................... ,...................... 2,200,239 2,238,4'2.3 1,876,418 *United States. ___ ...........:........... 6,138,800 6,156,775 5,22'2.,632 *Represents about 60 per ce~t of the total output in the United States. Flour sales in the southwest, after attaining a substan~ial volume in July when the wheat market advanced, declined considerably during August as buyers who had not already contracted for future requirements adopted a hand-t?-mouth policy to satisfy immediate needs while awaiting a decline in prices. Routine small lot orders characterized the month's business. Shipping directions were slow but bookings were reported the heaviest in several years. Flour prices at the Kansas City market advanced slightly during the forepart of August but ,later declined to close below opening quotations. Bran prices weakened with an improvement in prospects for fall feed while prices of shorts advanced owing mainly to a heavy demand for hog and pig feeding because of high corn prices. Grain Marketing Receipts of wheat at the five principal markets in the District during August were sharply lower than in July, when the seasonal movement of the new crop had reached its peak, and were slightly less than half the total of receipts in August, 1935, when the seasonal movement was at its height last year. The decline in wheat receipts to 42.8 per cent of the average volume for August during the past ten years also reflected in part the tendency of growers to hold supplies for live stock feeding because of the prospective small production of feed grains this year. Marketings of corn declined further and, although showing an increase over the low level of receipts a year ago, represented but 64.5 per cent of the August ten-year average. Marketings of oats, rye, and kafir were above but of barley somewhat below the average volume. Cumulative receipts for the year to September I were substantially heavier for all grains than .during the first eight months of 1935. Receipts 'Of grain at the five markets: Wheat Bushels Hutchinson .... Kansas City._. Omaha ............ St. Joseph._ __ . Wichita. ___ ..... 1,455,300 Corn Bushels Oats Bushels Barley Bushels 2,500 ................ 40,500 150,400 408,000 21,000 1,300 138,6oo 1,500 388,000 6,393,600 1,110,000 2,268,800 1,297,800 1,520,000 622,400 292,500 548,000 27,000 1,489,500 3,900 Aug. 1936.__ ... 12,229,6oo July 1936........ 60,669,927 Aug. 1935. __ ... 26,079,049 8 Mos. 1936._.104,964,737 8 Mos. 1935.... 69,763,238 Rye Bushels 2,704,200 2,484,500 3,033,450 2,826,000 1,037,700 5,744,000 28,529,818 u,632,000 17,469,710 9,409,500 176,400 60,000 5,200 Kafir Bushels 1,500 28,6oo --------- 282,100 583,200 168,700 64,200 286,000 146,100 210,700 937,650 71,000 697,500 2,268,950 1,043,900 331,600 1,031,100 517,500 Cash grain prices at the Kansas City market, which had advanced sharply in July, increased further until the third week in Augu·s t but subsequently declined somewhat to close the month with small net gains. During the first two weeks of September, prices of wheat, corn, oats, and kafir recovered a part of their decline from the high point reached on August 5 THE · MoNTHL~ - REVIEW 1_9. At the close of Augus_t, all grain quotations w~re considerably above the levels of a .year ago, with wheat and corn above the levels prevailing two years ago.· Cash grain prices at Kansas City: o. I hard, dk. wheat, bu. No. '2 mixed corn, bu ..... No, i white oats, bu ...... . No. '2 rye, bu ................... No. '2 barley, bu.·----····· o. 2 white kafir, cwt ..... Sept. I 5 Aug. JI Aug. 19 July 31 June 30 Aug. 31 1 935 1936 1936 1936 1936 1936 $1.19 $1.17½ f,1.23½ $I.I6½ $ .94½ $ .99 I.I4½ . I.IO½ I.18 1,09½ .65½ .76½ .46½ .46 .49 .45 .3 2 .29,¼ .87 .59 .47 ·90 ·9 2 .95 . .89 .90 .93 _.84 ,5'l •49 1.85 1.77 '2.00 1.64 1.23 1.15 Agriculture ~ROPS: The continuation of drought and hot weather, which h~d ?amaged crops in the District extensively in July and earhe~ m the season, resulted in a further slight decline in prospects m Kansas and Missouri and a rather marked decline in ~klahoma and New Mexico during August, partially offset by little or no further deterioration in Nebraska and Wyoming and by a considerable improvement in prospects in · Colorado following heavy rains early in the month. The most marked decline in crop prospects during August occurred in grain sorghums, bro"omcorn, · cotton, sweet potatoes, and tobacco which are important in those states where growing conditions were the least favorable during the month while the indicated production of corn, barley, sugar beets, ~hite potatoes, · dry beans, apples, peaches, and pears in the . District increased slightly, reflecting principally the favorable growing conditions which prevailed in Colorado and to a lesser extent in Nebraska and Wyoming. Crops in irrigated areas generally showed good improvement during the month. Rains in late August and the first two weeks of September, · although too late to help most crops, improved somewhat the outlook for fall pastures and forage crops, relieved the shortage of stock water, and conditioned the soil over a wide area for plowing and the seeding of fall grains which had proceeded ·slowly because of insufficient soil moisture. Much more -rain was neede~, however, to give average prospects to the 1937 crop of wmter wheat, and in an extensive area centering in eastern· Oklahoma the drought had not yet: been broken. Crop production in the seven states whose areas or parts thereof comprise the Tenth District and in the United States ~s estimated by the_Department of Agriculture on September m thousands of units: . 1: SEVEN STATES ,UNITED STATES Sept. 1 · Final 5-Yr.Av. Sept. 1 Final 5-Yr.Av. 1936 1935 1928-32 1936 1935 1928-32 Winter wheat~ bu. 'lJo,391 163,053 324,6o6 519,097 464,203 622,2s:1 Spring wheat, bu. 6,902 9,106 9,506 1u,1 44 159,241 241,312 All wheat, bu... 237,293 172,159 334,II'l 630,241 623,444 863,564 Corn, bu............... 107,189 260,533 575,646 1,458,295 2,291,629 2;553,424 Oats, bu ...·-··········· 101,766 I 86,597 176,977 776,661 1,196,668 1,215,102 Rye, bu................. 4,716 7,209 3,820 27,095 58,928 38,212 Barley, bu .. __ ······· 17,723 29,731 38,839 144,847 · 282,226 281,237 Gr. sorghums, bu. 20,205 31,674 39,137 58,850 97,823 97,76o Tame hay, tons._ 7,993 10,813 11,055 62,997 76,146 69,533 Wild hay, tons.___ 2-,496 4,325 4,077 7,197 n,338 10,719 Broomcorn, tons.. 20 34 39 63 47 4o Sugar beets, tons.. 3,673 2,976 4,052 9,056 7,908 8,II8 Cotton, bales........ 543 819 1,428 11,121 10,638 14,667 White potatoes,bu. 27,853 40,689 40,452 3u,951 387,678 372,u 5 .Sweetpotatoes,bu. 1,720 2,800 2,805 67,594 83,198 66,368 Dry beans, bags.-. 1,767 2,093 2,290 10,771 13,799 I 1,858 Tobacco, lbs......... 3,465 4,150 5,836 1,142,887 1,296,810 1,427,174 Apples, bu .. _·-····· 3,6o2 8,910 7,220 105,856 167,283 161,333 Peaches, bu·--····· 1,441 3,639 2,263 43,873 52,808 56,451 Pears, bu .. _.. ,........ 437 1,365 996 · 23,914 22,035 23,146 Grapes, tona,____ 9 20 20 1,875 ' . 2,455 · 2,200 _While produ~tion this year is much below the average and, ~1th the exception of winter wheat and sugar beets, below that m 1935, the September I estimates of the Department of Agriculture indicated that greater quantities of all crops except cotton and fruit will be harvested in this District than in the drought year of 1934. The estimates placed the yield per acre of thirty-three important crops combined at 61 per cent of the 1921-1930 average in Kansas, 56 per cent in Missouri, 48 per cent in Oklahoma, 99 per cent in ew Mexico, 72 per cent in Wyoming, 42 per cent in ebraska, 86 per cent in Colorado, and 82.8 per cent in the United States. Fruit prospects in the District have not been favorable this year except in Colorado because of frost damage in April, and drought had already reduced the production of feed grains, hay, broomcorn, sugar beets, potatoes, and dry beans substantially below the average in July. The eventual yields of white potatoes, grain sorghums, and dry beans, which were benefited by recent rains, are now largely dependent on a late frost. Late cuttings of alfalfa have generally been light and of poor quality and pastures were furnishing little feed to live stock. The prospective yield of cotton in Oklahoma declined severely du~ing August as a result of the extremely hot, dry weather which caused excessive shedding of squares and young bolls and prevented the full development, as well as forcing the premature opening, of bolls remaining on the plants. Moisture in Oklahoma has been deficient since planting time and rains now would damage the open cotton. The September 1 condition of 24 per cent was the lowest of record and abandonment since July J had amounted to II per cent of the planted acreage in contrast to o.6 per cent in Missouri, 1.8 per cent in Jew Mexico, and 2.9 per cent in the United States. Cotton acreage and production, estimated by the Department of Agriculture, in thousands of units: ACREAGE FoR H A RVEST INDI CATED PRODUCTION (Bales) Oklahoma . . ................. . MISSOUfl .•••..... ........... New Mexico....·-······· ept. 1 1936 2,290 349 109 Sept. 1 1935 2,628 320 108 Sept. I 1936 239 204 100 Aug. 1 1936 465 287 IOI Final 1935 567 177 75 Three states.-........... United States·--······· 2,748 '29,720 3,056 28,652 HJ 11,121 853 12,481 819 10,638 FARM PRICES: The Department of Agriculture index of prices received by farmers for farm products advanced from 10.3 per cent of the pre-war, 1909-1914, average on May I 5 to 124 per cent on August 15, reflecting principally increases in the price of grains, truck crops, dairy products, and poultry and poultry products the past three months. The index of prices paid by farmers advanced much less rapidly, increasini from 121 to 126 per cent of the average, and the ratio of prices received to prices paid advanced from 85 per cent of the prewar level on May 15 to 98 per cent on August 15. On August 15, 1935, the index of prices received stood at 106 per cent of the average, prices paid at 125 per cent, and the ratio at 85 per cent of the pre-war level. The price indexes for all commoditica except meat animals have increased during the year. Live Stock MARKET! GS: Receipts of cattle, calves, and sheep at the six principal live stock markets in the District were seasonally larger in August than in July, reflecting the movement of grass fat cattle and range lambs to market and some liquidation because of advancing feed costs, while receipts of hogs, including direct shipments to packers, showed a seasonal decline. Marketings of cattle and calves were approximately of normal proportions for the month but arrivals of sheep were 15.8 and hogs 44.8 per cent below the average volume during the past ten years. Receipts of cattle, calves, and hogs were heavier and of sheep lighter than in August, 1935, with cattle 6 THE MONTHLY REVIEW and hogs showing increases and calves and sheep decreases for the first eight months of 1936 compared to receipts for the first eight months of last year. M arketings of horses and mules totaled 8,719 head in August, 5,255 head in July, and 9,843 head in August, 1935. PRICES: Cattle and hog values at the Kansas City market advanced during August while lamb prices declined. The spread between prices of grain-fed and pasture-fed cattle widened materially, the former closing 25 to 50 cents per hundredweight higher and the latter about the same amount lower than at the opening of the month. Grain-fed steers reached a top of '$9.50 on August 24, the highest sinceApril but well below the top of $12. 50 last J anu ary, and fed heifers sold up to '$9.35, the highest price this year. A year ago the top price for beef steers was $n. 85 and for heifers $10.75. Stocker and feeder cattle prices were unchanged to 25 cents higher. Hogs closed the month with a net gain of about 45 to 65 cents after light and butcherweights had reached $11.55 on August 18 as compared to a top price of $12.00 in August, 1935, and of '$7.80 in August, 1934, when values were at the highest level for each of the two preceding years. Stock pigs were 25 to 50 cents lower. Lamb prices reflected a deterioration in quality resulting from the hot, dry weather, closing about 75 cents lower. The month's top of $10.25, however, was the highest for any August since 1929. Hog prices declined the first two weeks of September while lamb and cattle prices worked upward, cattle reaching $10.00 on Sep tember I 5. STOCKERS AN D FEE DERS: The countryward movement of stocker and feeder live stock from four markets in the ·District continued to increase during August. Shipments of calves and hogs were particularly heavy, exceeding the tenyear average for the month by 26.7 and 48 per cent, respectively, while cattle shipments were 30. 1 per cent and sheep 26.5 per cent below the average volume. Shipments of calves, hogs, and sheep were heavier than in August, 1935, but cattle shipments were somewhat smaller, and during the first eight months of the year all species except sheep showed a decrease in comparison with the numbers shipped to the country during the first eight months of 1935. RANGES AN D PASTURE S: Range and pasture feed continued good in the mountain and irrigated areas in the District during August but a continued lack of rain and high temperatures resulted in further deterioration in the Great Plains drought areas of northeastern Wyoming, Kansas, Oklahoma, and New Mexico. R anges showed a slight improvement in western and sou thern Wyoming and in western Nebraska and improved markedly in Colorado where rains raised the condition figure from 70 per cent of normal on August 1 to 82 per cent on September 1. Ranges in western Kansas, however, declined 7 points to 43 per cent of normal and in Oklahoma there was a decline of 11 points to 37 per cent of normal. Conditions were Kans as City .. .... ........ Omaha ........................ St. Joseph .................. Denver........................ Oklahoma City.......... Wichita ...................... Cattle 179,968 150,741 41,322 32,863 54,962 3 1,74° August 1936 ...... ........ 49r , 596 July 1936.................... 38 1,397 August 1935 .............. 430,369 Eight months 1936.... 2,793,208 tEight months 1935 .. 2,601,155 *Includes 77,369 hogs shipped generally materially lower than a year ago except in Colorado. An early feeding of the short supplies of hay and other feeds ordinarily reserved for winter use was reported in the drought sections. While there has been no extensive liquidation in live stock numbers, shipments from Wyoming, Kansas, and Nebraska to other ranges and pastures or to market have been fairly heavy and were expected to continue so because of high feed prices. Cattle and sheep outside the drought areas were reported in good condition. The condition of ranges, cattle, and sheep in percentages of normal, reported by the Department of Agriculture: SHEEP CATTLE RANGES Sept.I Sept.I 10-Yr. Sept.I Sept.I 10-Yr. Sept.I Sept.I 10-Yr. 1936 1935 Aver. 1936 1935 Aver. 1936 1935 Aver. 82 Wyo ................... 80 89 89.1 69 87 88.8 85 80.9 80 West. Nebr....... 61 89 90.4 89 85.2 West. Kans ....... 50 75.3 '4-3 74 79 85.9 Colo ................... So 84.2 86 82 91 85 88.8 90 9 1·3 66 67 72.2 37 Okla.·-··············· 79 79.9 86 88 87.4 N.M ................. 82 83.6 71 84 85 87.0 81 79.6 81 86 85 .... 17 West. states 89 87.6 85 70 Meat Packing Packers' purchases of live stock at the six principal markets in the District, direct purchases of hogs included, indicated an increase in the slaughter of cattle and calves and a decrease in the slaughter of hogs and sheep in August. Cattle and calf slaughter was at a high level, exceeding the ten-year average for the month by 19 and 20 per cent, respectively, while hog slaughter was 40.1 and sheep slaughter 32.2 per cent below the average volume. Butcherings of all species except sheep were heavier in August and during the first eight months of this year than in August and the first eight months of 1935. According to the Department of Agriculture, the slaughter of cattle and calves under Federal meat inspection in the United States established a new high record commercial total for the month of August. The slaughter of cattle was the heaviest for any month since last October and of calves the heaviest for any month since October, 1934. Hog slaughter was the smallest since last October but showed an increase of 35.2 per cent over August, 1935, although the total was well below the figures for August from 1921 to 1934, inclusive. Sheep slaughter was the largest since January but has been exceeded in every August since 1930. Live stock slaughtered under Federal meat inspection in the United States, reported by the Bureau of Agricultural Economics from compilations of the Bureau of Animal Industry: Cattle Calves Hogs August 1936._............... 1,011,743 540,801 2,253,96"4July 1936...................... 927,536 523,363 2,691,815 August 1935·····-··········· 875,070 472,184 1,667,540 Eight months 1936...... 6,800,941 3,961,091 21,187,184 Eight months 1935...... 5,8..,9,147 3,729,446 17,172,631 NOTE: Slaughter for Government relief purposes excluded. AUGUST M OVEME. T OF LIVE STOCK IN THE TENTH DISTRICT STOCKERS AND FEEDERS RECEIPTS Sheep Hogs Calves Cattle Sheep Calves Hogs 13,180 10,033 43,67 2 7,337 43,03 1 *135,856 65,443 1,062 4,256 49, 156 :28,499 18,363 120,374 I 51,984 1,792 7,334 3,981 ll,'.25 1 64,501 49, 26o 990 2,594 85,165 29,026 969 6,61 9 JII ,435 9,74° 34, 126 15,728 9,763 20,502 7,065 5,562 608,688 85,892 15,177 102,057 389,I44 64,148 478,209 7,565 67,548 524,33 1 I4,86o 107,801 82,378 265,591 612,265 61,687 488,029 3,475,793 4,476,o37 464,114 89,831 501,329 2,724,161 4,7° 1 ,905 530,344 tReceipts include Gontnmcnt direct to packers' yards. PURCHASED FOR SLAUGHTER Sheep Hogs Calves Cattle 93,686 91,88 7 31,837 16,809 38,888 15,299 288,4o6 154,835 224,679 70,348 207,829 123,939 1,662,113 527,748 1,375,886 ,t18,697 purc:hase, of cattle and calns. 13,856 7,463 6,802 46,554 49,547 Sheep 1,395,374 1,352,468 1,665,....9 10,764,031 l 1,555,149 31,938 13,931 9,754 3,982 12,117 6,651 •113,833 90,895 41,569 22,410 29,77° 18,614 52,310 93,54 2 52,121 29,581 7,867 ~018 240,439 3 17,09 1 255,166 400,706 227,676 296,034 59,853 39 2 , 0 59 2,916,231 1 ,309,247 383,114 2,148,081 2,561,J'lQ 78,373 57,206 THE MONTHLY REVIEW Coal The production of bituminous coal in the District increased by about the usual seasonal amount from July to August and was 18.7 per cent greater than in August of last year. Production for the first eight months of the year increased 17.1 per cent compared to production for the first eight months of 1935. Bituminous coal production reported by the Bureau of Mines: *August 1936 Tons Colorado._ .................................... . Kansas and Missouri .................. cw Mexico·---························· Oklahoma ___ .............................. . Wyoming..................................... . I 57,000 July 1936 Tons 293,000 420,000 122,000 93,000 400,000 356,000 396,000 471,000 110,000 August 1935 Tons 379,000 377,000 106,000 106,000 324,000 Six states ........... ·-························ 1,534,000 1,284,000 1,292,000 United States·----······················· 32,818,000 32,054,000 26,164,000 *Estimated from the weekly reports of the United States Bureau of Mines. Petroleum The gross and daily average production of crude oil in the District increased 4.4 per cent from July to August and was slightly in excess of the Bureau of Mines recommendatory level of 855,400 barrels daily for the month. Production was 14 per cent above the average for August during the past ten years and exceeded production a year ago by 1 5. 5 per cent. During the first eight months of 1936, production increased 8.7 per cent compared to the output for the same period in 1935. Gross and daily average production, estimated from the weekly reports of the American Petroleum Institute for August, 1936, and officially reported by the Bureau of Mines for July, 1936, and August, 1935: GROSS PRODUCTIO August 1936 Barrels 17,838,000 Oklahoma...--······························· Kansas ......................................... . 5,015,000 Wyoming..................................... . 1,253,000 153,000 Colorado. __ ··················-··············· New Mexico... _............................ . 2,417,000 Total five states ......................... . Total United States ................... . July 1936 · August 1935 Barrels Barrels 16,952,000 15,357,000 4,g68,ooo 4,613,000 1,212,000 1,174,000 147,000 134,000 1,822,000 2,280,000 2 5,559,000 92,078,000 23,100,000 84,816,000 DAILY AVERAGE PRODUCTION August 1936 July 1936 Barrels Barrels 575,400 546,800 Oklahoma..... -·················-············ Kansas .... ...................................... 161,800 1~0,300 Wyoming...................................... 40,400 39,100 Colorado.___................................. . 4,900 4,800 78,000 73,6oo New tvlexico... --··························· August 1935 Barrels 495,400 148,800 37,900 4,300 58,800 Total five states.......................... Total United States................... . 26,676,000 87,016,000 86o,500 2,8o7,ooo 824,6oo 2,970,300 745, 200 2,736,000 7 Mid-continent crude oil prices were unchanged in August at posted schedules, ranging from 86 cents to 1.18 per barrel according to gravity, which have been in effect since January 9. Refinery operations continued an upward trend during August and reached the highest point since September, 1931. There was a decline in the number of wells completed and in the amount of new crude production during the month but the number of rigs and wells drilling at the close of August showed little change from that at the end of July. Field operations in the District, reported by the Oil and Gas Journal: Wells Completed Oklahoma. ___ ··········· 242 Kansas .... .................. 139 Wyoming.................. 16 Colorado._ ................. 3 ew Mexico....·-······· 46 August 1936.............. July 1936 .................. August 1935 ...... :...... Barrels Daily ew Production u5,012 60,450 7,812 446 55° 38.:> Dry ells 51 44 4 2 0 ' I IO 31,525 2 14,9°9 359,54 1 252,056 I OI 102 88 Gas Rigs-Wells Wells Drilling 13 577 346 4 0 69 0 35 126 0 1,153 1,162 1,032 17 20 14 Zinc and Lead Shipments of zinc ore from Tri-State mines and tailing mills increased slightly during the four weeks ended August 29, reversing the trend during the preceding three months, while shipments of lead ore declined somewhat after reaching a substantial volume in July. Zinc deliveries exceeded production during the four weeks although production had increased by the final week in August to the highest level since the inauguration of the curtailment program at the beginning of July. Shipments of both zinc and lead were below shipments for the corresponding four-week period a year ago but showed increases of 22.1 per cent for zinc and of 31.9 per cent for lead during the first thirty-five weeks of I 936 compared to the same period in 1935. Zinc and lead shipments from the Tri-State district: ZINC ORE Oklaho1na..·-····································· Kansas .... ......................................... . Missouri ........................................... . 4 Weeks ended 4 Weeks ended 4 Weeks ended 35 Weeks ended 35 Weeks ended Aug. Aug. Aug. Aug. Aug. 29, 1, 31, 29, 31, Tons Value 16,682 J 517,142 24°,343 7,753 3, 2 45 JOo,595 1936...... 27,680 1, 858,080 1936...... 26,340 807,435 1935...... 32,8 75 978,555 1936... _. 278,910 8,860,395 1935 ...... 228,471 6,158,66o L EAD ORE Tons 1,510 1, 1,018 162 Value 75,500 50,900 8,100 2,690 1, 134,500 4,450 222,500 4,382 191,126 34,249 1,690,050 25,973 980,379 Prices at the Joplin market were unchanged during August at $31 per ton for zinc and '$50 per ton for lead, but zinc ore advanced 50 cents the first week of September. In August of last year both zinc and lead advanced '1,2 to close the month at $30 and $45 per ton, respectively. National Summary of Business Conditions By the Board of Governors of the Federal Reserve System Industrial activity increased seasonally in August and there was a substantial increase in factory employment and payrolls. Commodity prices, which had advanced for three months, showed little change after the middle of August. PRODUCTION AND EMPLOYMENT: The Board's index of industrial production, which makes allowance for usual seasonal movements, remained unchanged in August at 107 per cent of the 1923-1925 average. Output of steel increased by more than the seasonal amount and the higher level was maintained in the first three weeks of September. Production of automobiles was sharply reduced as plants were closed for inventory taking and for mechanical changes in connection with the introduction of new models. Output of nondurable manu- factures increased further in August, reflecting chiefly continueJ expansion in activity at textile plants and shoe factories. At bituminous coal mines output increased less than is usual at this season and at anthracite mines production declined. Output of petroleum showed an increase. Factory employment rose further between the middle of July and the middle of August by an amount larger than is usual at this season. There were substantial increases in working forces at establishments producing textiles and wearing apparel and smaller increases in most other lines, partly offset in the total by a decline in employment in the automobile industry. Factory payrolls increased. Value of construction contracts, which had increased sharply 8 THE MONTHLY REVIEW in July, declined somewhat in August, according to the figures of the F. W. Dodge Corporation. The value of non-residential projects was smaller than in July but larger than in other recent months. Residential building increased considerably, reflecting a marked increase in contracts for apartments, several of which were publicly-financed projects. Awards for single-family houses, which have accounted for most of the increase in resiPER CENT PER CENT t40 r-----r--~---.---.----~--~--~-----.. INDUSTRIAL PRODUCTION \40 130 t - - - - + - - - + - - - - + - - - - 1 - - - - - + - - - - - + - - - + - - - - - - j 130 third week of September, following three months of advance. Prices of steel scrap and chemicals and- drugs continued to advance and there were also increases in the prices of hides and nonferrous metals. There was a seasonal ·decline in hog prices. Cotton, which advanced in price early this month at the time of the official crop report, declined after the middle of the month. BA K CREDIT: Demand deposits o_f reporting member PER CENT PER CENr 120 120 WHOLESALE PRICES 110 110 too 100 ., 90 I~" " 80 50 50 1929 1930 1931 1932 1933 1934 1935 60 ~-- --- I ~ 70 60 1----+---+----+-----1-+-W---+----+-----+-------iso 90 ,/- ~ '~ 70 50 50 \929 1936 J ndex of physical volume of production, adjusted for seasona l varia- 80 1930 193·1 1932 1933 1934 1935 1936 Index compiled by the United States Bureau of Labor Statistics, 1-926=100. By months,_1929 to 1931; by weeks, 1932 to date. ~atest figure is for week ending September 19, 1936. tion, 1923-1925 average=100. By months, J anuary 1929 through August 1936. dential building during the past year and a half, showed little banks in leading cities increased somewhat further in the four change in August. weeks ending September 16, reflecting gold imports, Treasury AGRICULTURE: Department of Agriculture crop estimates ·expenditures·, and an increase in bank loans. Growth in loans based on September I conditions were about the same as the was principally in so-called "other" loans, which include loans estimates made a month earlier, except for a sharp decline in to customers for agricultural, commercial, and industrial purprospects for cotton. Prospective output of leading crops, with poses, These loans are now at the highest level since early in the exception of cotton and winter wheat, is considerably smaller ,. 1933. Loans to security dealers showed an increase, as is usual, than last year, but, in comparison with the drought year 1934, prior to flotation of the new issue of Treasury bonds of September it is larger, except for corn and pot a toes. 15.· A part of the new Treasury issue was purchased by repq-rtPER CENT 120 PER CENT 120 FACTORY EMPLOYMENT AND PAYROLLS 110 110 . BllUONS Of DOU.AAS BILLIONS Of DOLLARS 16 23 15 22 14 21 100 too 13 90 90 12 20 - 19 H 80 10 80 6 SI 70 70 . 5 8 60 60 4 4 3 3 2 2 \ 50 \ \ 50 \ \I 40 40 30 30 1929 1930 1931 1932 1933 1934 1935 \936 Indexes of number employed and payrolls, without adjust)nent for seasonal variation, 1923-1925 average=100. By months, J anuary 1929 through August 1936. Indexes compiled by the United States Bureau of Labor Statistics. DISTRIB TIO : Freight-car loadings of most classes of commodities showed about the usual seasonal increase from July · to August. Shipments of grain, however, declined sharply and the increase in total loadings was less than seasonal. Department store sales increased by less than the usual amount and the Board's seasonally adjusted index was 86 per cent of the 1923-1925 average as compared with 91 per cent in July and 87 per cent in June. COMMODITY PRICES: Wholesale commodity prices showed little change between the middle of August and the 1935 1936 ·34 0 1935 1936 · Wednesday figures· for reporting member banks in 101 leading cities. September 5, 1934, through September 16, 1936. Loans on real estate, loans to banks, and acceptances and commercial pape,r bought included in total loans and investments but not shown separately. ing banks, principally by drawing upon their balances with the Reserve banks. Largely as a consequence of payments to the Treasury excess reserves of member banks showed a decrease of $280,000,000 in the week ending September I 6. This decline followed an increase of nearly 200,000,000 in the preceding three weeks, when the Treasury was reducing its deposits with the Reserve banks. Since early in August there has been a renewed inflow of gold and the country's monetary gold stock has increased by about $100,000,000 in the .past .month.. ·
@FedFRASER