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MONTHLY
REVIEW
_A gricultural and Business Conditions
TENTH FEDERAL RESERVE DISTRICT
VoL. 23, No. 9
FEDEU.L RESElt.VE BANK. OF KANSAS CITY
SEPTEMBER
30, 1938
Business in the Tenth Federal Reserve District
AUCUST 1938
COMPARED WITH AUCUST 1937
% DECREASE
i
--------'-'---·
·--------:' KANSA
Denver•
40 30 20 10
BUSINESS
INDICATORS
% INCREASE
10 20
30 40
Financial
.. - .Bank Debits. -
I
___Mem. Bk. Loan,_
I
I
F. R. Bk. Clearin~•-
!<ANS.
I
__ Mem. Bk. Inveat,_
·--------·--·-··-r-!---
...Demand Depoaita _
_ Life Ina. Sales_
Trade
_ Wholesale Sales._.
August rainfall while 20% above
last year was subnormal and badly
timed for corn. There is somewhat
more corn than in recent years but
the crop generally is quite disappointing. The feed situation is good.
Department store sales have improved in recent weeks and are
only 4% under a year ago. Lumber
sales are currently 8% above last
year and building permits and construction contracts are up. Life
insurance sales have improved
somewhat. Cash farm income is
25% below last year.
Payments by check are down
14%, bank loans 16%, bank investments 13%, and demand deposits 2%.
Production of crude petroleum
is 25% below last year but zinc
and lead shipments are improving.
In recent weeks flour production is
better. The amount of wheat being
marketed is much under last year.
Marketings and slaughter of cattle
are lower but for hogs and sheep
they are increasing. Employment
and pay rolls are 12% lower.
-··--·Retail Salee.__ _
...Dept. Store Salee_
__ Lumber Sales_
Marketing•
___ _Wheat_
_
+1,, _____Corn _ __
_ _ Oats _ _ _ _
__
_cattle_ _
____..Calves.__
_
__ _ ..Ho~•--__ _ Sheep _ _
Production
_
_
Flour_
_
_ Cattle Slaughter._
_ Calf Slaughter_
_ Hog Slaughter__
- ..Sheep Slaughter_
__ Crude Petroleum._
_.Bituminous Coal_
Zinc Ore Shipments
Lead Ore Shipments
Comtrudion
__ Total Awards __
+51
- -Rea. Awards_
_ Value of Permits_
Mi•cellaneou•
___
_Ralnfa)) _ _ _
Cash Farm Income.•
_
% DECREASE
40 30 20
I
I
COLO.
8 MOS. 1938
COMPARED WITH 8 MOS. 1937
Employment__
_ _ Pa:, Roll■-•For previous month
10
% INCREASE
10 20 30 40
2
REVIEW OF AGRICULTURAL AND BUSINESS CONDITIONS
Member Bank Operation&
Following a moderate rise in the preceding six weeks,
loans at reporting member banks in the Tenth District
declined slightly from the middle of August to the middle
of September, reflecting a decrease in the volume of commercial loans that was partially offset by increases in
other types of loans. The expansion of bank loans due to
the wheat harvest has been unus·1ally small. Investments
increased further from their low point about the middle
of the year. Holdings of Government direct obligations
in recent weeks have again declined but holdings of
obligations guaranteed by the Government and holdings
of other securities continue to increase. Loans are about
15 and investments 12 per cent lower than a year ago.
Adjusted demand deposits and deposits of other banks
at these reporting banks increased somewhat further
from the middle of August to the middle of September,
and there was a considerable rise in reserve balances
carried at this bank and a small increase in correspondent
balances carried with other banks. Adjusted demand
and interbank deposits are about as large as at this time
last year while correspondent balances are 53 per cent
larger and reserves with this bank about 5 per cent
smaller.
Principal items of condition of 51 member banks:
Change from
Sept. 14
Aug. 17 Sept. 15
1938
1938
1937
On thousands of dollars)
Loans and investments-total... ...... . 625,823
+2,233
-94,012
Loans-total. ....................................... 243,112
-1,772
-43,726
-3,414
-30,425
Coml., indust., and agric ...·-········· 147,574
Open market paper....................... . 17,001
+603
-9,252
To security brokers and dealers ... .
3,953
+72
-505
Other to purchase or carry secur.. . 12,194
+8
-2,094
Real estate loans ........................... . 22,121
+215
+2,168
Loans to banks............................... .
619
+36
-187
All other loans ............................... . 39,650
+708
-3,431
Investments-total.. .......................... 382,711
+4,005
-50,286
U. S. Govt. direct obligations.-.... . 208,106
-1,149
-58,005
Oblig. guar. by U.S. Govt .. _........ . 48,951
+2,338
+4,514
+2,816
+3,205
Other securities·--··························· 125,654
Reserve with F. R. Bank. ................. 168,070
+9,010
-8,609
Balances with domestic banks......... . 305,476 I +2,952 +106,100
Demand deposits-adjusted_........... 505,211 +10,138
+186
Time deposits ...................................... 143,918 I . I -411
-2,540
-786
+4,422
U.S. Govt. deposits·-························· 17,208
Interbank deposits............................. . 369,800
+5,862
-2,074
Reserve Bank Operations
Note circulation of thif? bank, which in recent months
had tended to decline, averaged somewhat higher in
August. In the first week of September, before the return
flow of currency after the Labor Day holiday, circulation
increased to about 167½ million, or almost as high as
at any time since early in the year. Since late June, circulation has been slightly lower than a year ago but the
decline measures less than 1 per~cent.
Member bank reserves, after falling by early August
to the lowest level of the
1 have increased consider-
~bly in
re<!~nt weeks,
year
Principal items of condition of the Federal Reserve
Bank of Kansas City and branches:
Total reserves......................................
Bills discounted..................................
Bills purchased....................................
Industrial advances............................
Commit. to make indust. adv.. -.......
U. S. Government securities..·-·········
Total resources ....................................
F. R. notes in circulation ..................
Member bank reserve deposits·---···
Change from
Sept. 14
Aug. 17 Sept. 15
1938
1938
1937
'thousands of dollars)
319,088
+9,424
+5,457
214
+6
-310
16
Zero
- 71
421
-6
-159
360
-73
+240
118,631
Zero
-5,497
483,332 +17,734
-4,874
165,501
-240
-1,261
236,347 +10,022
-18,731
---un
Dollar volume of check collections declined seasonally
in August. Dollar volume for August was 10 and for the
first eight months of the year 13 per cent lower than in
the same periods last year.
Check collections through this bank and branches:
ITEMS
1938
August ......................... .
July _··-·························
Eight months·--···········
5,862
5,866
46,604
AMOUNT
1937
1938
(In thousands)
5,865
$ 919,924
6,376
942,074
47,950
7,018,611
1937
$1,020,468
1,171,585
8,084,232
Bank Debits
Following a greater than seasonal rise in July, debits to
individual accounts by banks in reporting centers of the
District declined more than seasonally in August. Volume
of payments by check in August and in the first eight
months of the year was about 14 per cent less than a
year ago.
Payments by check in thirty District cities:
Aug. 1938
Albuquerque, N. Mex . ......
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 .................... .
(In
13,967
3,036
26,882
5,662
8,392
13,988
157,497
2,877
11,415
2,537
3,123
1,635
11,211
2,423
8,692
15,280
295,911
3,053
25,881
6,508
104,634
2,074
140,724
3,449
12,921
10,495
24,469
17,692
128,148
41,723
. Change from
July 1938
Aug. 1937
thousands of dollars)
-371
-378
-1,054
-603
-1,246
-10,547
-408
-393
-235
-707
-1,345
+414
-945
-11,486
-256
-1,103
-5,195
-2,538
-2
-232
-225
-469
-76
-329
-7,867
-2,114
-556
-440
-74
-1,416
+ 107
+216
-64,858
-79,482
-856
-834
- 2,662
-2,174
-481
-1.184
+8,230
+2,102
-275
-401
-5,929
-20,422
-266
-92
-3,050
-4,036
-5,048
-1,495
-4,233
-3,936
-4,781
-1,179
+2,594
-28,898
-12,784
-6,175
1
District, 30 cities................
1,106,299
-114,147
-180,331
Vuitw ti\-te~, l-U cities...,
28,270,178
-2,234,887
-8,625176~
FEDERAL R~SERVE BANK _OF KANSAS CITY
Trade
Wholesale sales and stocks reported by the Department of Commerce for this District:
RETAIL SALES
Dollar volume of August sales at reporting department ·
stores in the District was only 4 per cent under a year
ago as compared with a decrease of about 7 ·per cent in
sales for the first eight months of the year. In the first
t hree weeks of September, h8wever, sales show a decrease
of 6 per cent from last year. Retail prices, according
to the Fairchild Index, are now nearly 8 per cent under
a year ago, so the physical volume of merchandise currently going into consumption is undoubtedly greater
than dollar sales indicate.
Stocks of merchandise increased somewhat more than
seasonally in August but continue more than 11 per cent
lower than a year ago. Collections on open accounts
averaged 42.2 per cent in August as compared with 41.6
per cent last year, while installment collections averaged
15.3 and 13.0 per cent, respectively.
Department store sales and stocks in leading cities:
SALES
No. of
Stores
Denver__________________ 4
Kansas City________ __ 4
Oklahoma City____ 3
Omaha ____ ______________ 3
Tulsa____________________ 4
Wichita________________ 3
Other cities __________ 20
District_______________ 41
STOCKS
Aug.'38 8 Mos.'38
Aug. 31, '38
comp.to comp.to
compared to
Aug.'37 8 Mos.'37 July 31,'38 Aug.31;'37
--(Per cent increase or decrease)
-8.8
-7.5
+5.2
-11.9
-6.2
-10.4
+4.1
~16.1
+5.8
-0.3
+20.1
+0.4
+4.5
-2.1
+22.7
-9.9
+1.7
-1.4
+18.7
-3.1
-8.3
-10.7
-13.5
-7.1
-8.9
+20.3
-4.2
-6.7
+12.7
-11.5
August sales of all principal types of retailing in the
District averaged about 9 per cent lower and total sales
for the first eight months of the year about 12 per cent
lower than in the corresponding periods in 1937.
Sales of independent retail stores reported by the
Department of Commerce:
August 1938 per cent change from August 1937
Colo. Kans.
Mo.
Nebr.
Okla.
-2.3 '=Irr
-1.7
-2.1
-6.2
-16.2
-12.6
-8.9
-14:7
-1.2 · -'5.1 - -1.0
-2.8
+1.8
-5.3
-6.5
-1.7
-5.6
-2.3
..... 14.1
-13.1
-10.9
+9.7
-8.2
-4.0
-8.1
- 8.6
---6.1
· -6.8
-20.6
-31.9 - -11.1 --1-3.3
-10.9
-5.0
+0.1 - -11.7 · ·-14.3
-7.6
-26.0
-33.4 - - -30.9 - -- -22.4
-25.1
Total. _____________ ·____________
-9.5
-16.5
-7.4 · · -8.9- · --7.5
-=r.s
Apparel.. __ _________________ ___
Country general.. ___ _____
Department________________
Drug____________________________ _
Furn. and appliances __
Grocery ________________________
Hardware____________________
Lbr. and bldg. mtls. ___
Motor vehicle _____________ _
WHOLESALE SALES
The value of August wholesale sales· in·: thjs_·_District
was nearly 10 per cent lower than a year ago,. approximately the same decrease as that' for the first eight
months . of -the year. Sales of drugs were considerably
larger than in August. of" last year--,and show :a . smallincrease
-the year.. to --date,.-hut :saies ~for-·mosf othef
lines .sh.ow •sizable decreases.- Sales-rose -about:&per·centfrom July to August~ ,
·
·
-for
3
STOCKS
SALES
No. of
Firms
Auto: supplies____ :_ 3
Drugs____________________ 4
Electrical goods__ 9
Furniture______________ 4
Groceries ______________ 25
Hardware-total..._ (17)
General____________ 6
Industrial_________ 6
Plbg. & htg.______ 5
Paper____________________ 3
Surgical equip.____ 3
Tobacco & prod... 6
All other lines______ 13
TotaL _________________ 87
Aug.'38 8 Mos.'38
Aug. 31, '38
comp.to comp.to
compared to
Aug.'37 8 Mos.'37 July 31,'38 Aug.31,'37
--(Per cent increase or decrease)
-17.9
- 4.7
+19.1
+1.5
+2.7
-18.4
-2.0
-12.1
- 23.3
-16.7
-2.1
-9.3
-1.6
-8.7
-6.9
-26.2
-1.8
-8.4
-10.7
-16.2
-3.2
-7.5
-37.7
+4.2
-10.5
+1.9
-15.9
- 22.5
+2.9
Zero
-2.9
-24.1
-20.7
-27.0
+1.0
-9.7
-10.4
-0.5
-15.6
Crops
Drought, hot winds, and grasshoppers--did great
damage to corn in the District in August, cutting the
estimate for Nebraska almost in half and reducing prospects materially in Missouri, Kansas, and Colorado.
In contrast with another large crop this year in the
country as a whole, corn production in this District will
be short for the fifth consecutive year. Output, however,
is better than production figures indicate, for the planted
acreage has declined sharply in recent years as farmers
have increased wheat acreage. Except in Nebraska, the
per-acre yield of corn is about equal to or considerably
above the average from 1927 to 1936.
Corn estimates of the Department of Agriculture:
Indic.
Sept. 1
Colo. __________
Kans. __ __ ____
Mo. ___________
Nebr. ________
N.Mex. ____
Okla. ________
Wyo. ________
11,737
47,139
105,000
97,812
2,412
33,208
3,132
Indic.
Final
Final
Aug.1
1937
1936
~housands of bushels)
14,938
8,536
11,169
52,101
28,244
11,036
113,400
115,020
40,032
187,800
82,992
26,859
2,509
2,740
2,185
31,506
30,960
11,772
3,654
2,480
1,066
Aver.
'27-'36
17,039
94,639
117,242
180,280
2,909
40,123
2,112
7 States ____ 300,440
405,908
270,972
104,119
454,344
U.S. __________ 2,454,526 2,566,221 2,644,995 1,507,089 2,306,157
Good -rains· in recent weeks have enabled farmers to
complete seedbed preparation for winter wheat and
seeding was becoming general in Kansas about the middle of September. Present prospects indicate a substantial reduction in the acreage that' will be seeded to wheat
this fall. Under the Government's curtailment program,
the acreage allotment for Kansas is 37 per cent smaller
than th€-large acreage seeded last fall, and benefit payments to cooperating farmers have been increased to 26
to __30 cents. Soil ..moisture conditions are much more
favorable than, a ·year ago.
.
: _Augµ~t. -rainfalL in the.. District.
somewhat ~elow
normal~ '. being m-arkedly deficient in·· the northern part
of Nebraska, in New Mexico, in inuch of Oklahoma, and
was·.
REVIEW OF AGRICULTURAL AND BUSINESS CONDITIONS
4
in southwestern Missouri. Most of these sections received good rains early in September and some late crops
may still show partial recovery.
Rainfall
Aug. 1938
8 Mos. 1938
Total Normal
Total Normal
COLORADO
- - - - -(In inches) - Denver...................................... .96
1.43
14.03 10.73
Leadville.................................. 5.87
2.44
18.82 13.97
Pueblo...................................... 2.03
1.82
10.47
9.40
Lamar ---································· 2.56
2.02
14.78 12.65
Garnet t.................................... 1.09
1.27
6.84
6.11
SteamboatSprings.................. 1.15
1.77
16.06 16.84
Marketings of wheat declined sharply in August, reflecting not only the usual after-harvest slackening but
also further weakness in prices, and receipts were 15 per
cent less than a year ago and 20 per cent below the
August average for the past ten years. Although wheat
production in the District this year is little different
from that last year, marketings for the three months,
June through August, were 17 per cent lower. Corn marketings continue substantially larger than a year ago
but in only a third of the normal volume.
August grain receipts at six markets in the District:
KANSAS
2.15
9.63
3.70
3.66
6.60
2.47
3.80
2.96
.03
4.08
3.64
2.91
3.40
3.13
3.14
2.52
2.67
2.15
26.13
38.81
23.91
24.37
27.83
19.65
15.85
15.92
11.61
24.81
26.55
20.36
20.35
22.04
18.24
14.49
16.01
12.73
6.85
6.78
1.00
3.83
4.09
3.97
23.05
31.18
32.97
25.88
26.47
31.69
3.99
4.63
.83
1.16
3.43
1.80
1.27
1.37
3.22
3.57
3.43
3.52
2.57
2.38
1.71
2.37
22.83
22.77
17.87
17.69
17.39
15.98
14.37
16.58
20.56
20.91
21.49
20.19
15.45
14.77
12.83
15.37
.46
1.81
.52
2.24
2.28
1.22
8.81
10.96
4.52
12.11
10.22
6.90
7.39
2.33
.84
1.03
.06
2.99
1.60
3.21
3.54
2.89
2.72
2.17
3.48
2.68
37.31
40.16
28.11
37.70
20.48
26.09
27.28
27.35
30.09
21.87
24.13
19.36
21.90
18.31
Cheyenne.-............................... 2.26
Casper...................................... .46
Lander...................................... .56
8heridan·-································· .30
1.55
.96
.53
.91
12.00
7.73
8.58
14.45
11.76
10.81
9.07
11.45
Topeka·-······························-···
Iola............................................
Concordia..·--···························
Salina........................................
Wichita....................................
Hays -·······································
Goodland.................................
Dodge City..............................
Elkhart .............................. ·-···
MISSOURI
St. Joseph·---···························
Kansas CitY·--·························
Joplin ........................................
Wheat
Hutchinson ..............
Kansas City............
Omaha ......................
St. Joseph ................
Wichita ....................
1,812
11,631
4,591
1,299
1,297
Corn Oats Rye Barley Kafir
(In thousands of bushels)
8
3
24
26
422
592
15
560 1,300 300 367
12
218
502
3
6
1
--
Aug. 1938·--············· 20,530 1,206 2,394 322 393
July 1938.................. 75,528 1,414 1,560 259 245
449 2,851 496 382
Aug. 1937....·-··········· 24,220
8 Mos.1938__ ........... 141,766 16,568 7,853 1,054 769
8 Mos. 193L-......... 151,107 11,300 10,763 898 1,430
34
69
32
655
481
NEBRASKA
Omaha.. •······················-···········
Lincoln·-···································
Norfolk. ___ ·······························
Grand Island...........................
McCook....................................
NorthPlatte ............................
Bridgeport·-·····························
Valentine..................................
NEW MEXICO
Clayton....................................
Santa Fe ..................................
Farmington..............................
OKLAHOMA
Tulsa........................................
McAlest er................................
Oklahoma City........................
Pauls Valley............................
Hobart......................................
Enid..........................................
Woodward...............................
W YOMING
Liveatock
MARKETINGS
Grain Marketing
Cash prices of wheat and corn eased further in August
and the forepart of September. Late in August the Government increased the loan rate on corn produced in
1937 from 50 to 57 cents and initiated a subsidy program
for wheat exports, later extending the export subsidy on
wheat to include flour. Federal loans on wheat, announced
July 14, are just getting under way. Since the middle
of September grain prices have fluctuated nervously.
The lower range of cash grain prices at Kansas City:
Livestock marketings increased substantially in
August. The seasonal peak in the movement of grass-fat
steers, together with a large number of unfinished grainfed cattle, contributed to the increase in cattle receipts
but, even so, cattle marketings were 19 per cent less than
a year ago and 17 per cent below the August ten-year
average. Receipts of calves also were smaller than last
year and were 25 per cent below average. Seasonal
marketings of range lambs were unusually heavy and
sheep receipts exceeded a year ago by 11 per cent and
the average by 15 per cent. Market supplies of hogs,
although still less than half of normal are on the increase
but the light weight at which hogs are coming to market
indicates a rather early marketing of spring pigs, the
increase in hog receipts in August being contrary to the
usual seasonal trend.
August livestock receipts at six markets in the District:
Denver..........................
Kansas CitY·--·············
Oklahoma City............
Omaha.................- .......
St. Joseph. ___ ...............
Wichita .... ,................... .
Cattle
40,497
151,900
45,215
116,037
29,691
27,668
Aug. 1938._...................
411,008
July 1938..·-·················
316,386
Aug. 1937·-··-···············
507,828
8 Mos. 1938.--············· 2,441,919
8 Mos. 1937.__............. 2,757,290
Calves
5,072
29,886
18,292
9,662
5,982
6,139
Hogs
18,031
107,968
27,799
77,242
47,430
22,667
Sheep
392,349
114,849
22,249
217,023
73,317
8,773
301,137
828,560
75,033
258,232
527,078
63,328
231,338
746,306
102,256
2,571,039
4,762,721
459,373
559,958 2,363,043 4,702,215
Sept. 23 Aug. 31 July 30 Aug.31
1938
1938
1938
1937
Marketings of cattle during the remainder of the year
No. 1 hd., dk. wheat, bu .......... .
$ •64 ¾' $ •63 ¾' r'iIB
s1 • o·s . are expected to ~ntinu.e b_elow a year .ago, r.eflec.tin.g not
No. 2 mixed corn, bu ................ .
1 00
.48¾'
.49½
.62
.,,l,..,.~ eel
b
h D
.26
.24
•.23
· .30 • onJy the .-:U';CW!-' · I\ .uct101;1 m num ei_-s m t 1s !Strict. 8.$
No. 2 y;hite oats._bu.·--···-·····;... .
4
6
No. 2 rye, bu_...............,. ..,..·-····••.•· · ._ .4;l
• o: . -·• ½
a result of-the 1984 and 1986 dro.ughts but .alE;l:O the more
No. 2 barley, bu ......................~ .. - ·
1:54 nearly normal feed situation this year. Because of the
No. 2 white kafir, cwt ...............
-::~ · ::g
::~
-i~
FEDERAL RESERVE BANK OF KANSAS CITY
5
good feed situation, fall marketings will be influenced sections the condition is unusually good for this season
considerably by price trends. Marketings of sheep and of the year. Indications point to an abundance of early
lambs are expected to continue about as large or larger wheat pasture in western Kansas and the movement of
than last year.
cattle and lambs into that area for wintering on wheat
PRICES
is expected to be heavy. Cattle and lambs are in very
Influenced by increased marketings and a curtailed good condition and carry good weight and finish. Wool
consumer dema.nd for dressed meats, prices of slaughter prices have recently strengthened, reflecting in part the
livestock dropped sharply in August while stocker and stabilizing influence of Government loans, which so far
feeder prices continued strong. The decline in beef cattle have averaged about 17.4 cents per pound grease basis
and hog prices was from the highest levels so far this at warehouses.
year but that of lambs was a continuation of the downRange and pasture conditions reported by the Departward trend since early June. Beef cattle and hog prices ment of Agriculture:
have strengthened somewhat in September but lamb
RANGES
PASTURES
Sept. 1 Sept. 1 '28-'37
Sept. 1 Sept. 1 '27-'36
prices show a further decline.
1938
1937
Aver.
1938
1937
Aver.
Top livestock prices at the Kansas City market:
(Inpercentages of 100 as normal)
Sept. 23 Aug. July Aug. Aug. Aug.
1938 1938 1938 1937 1936 1935
- ( I n dollarsper hundredweigh~
Beef steers_______________________ _____ 12.00 12.35 12.35 17 .00 9.50 11.85
Stocker cattle______________________ 9.00 9.00 9.10 10.00 7.25 8.40
Feeder cattle________________________ 8.75 10.75 10.50 12.40 8.25 10.40
Calves_________________________________ 10.00 9.50 9.00 10.00 7.50 8.75
Hogs____________________________________ __ 8.90 9.90 10.05 13.20 11.55 12.00
Sheep____________________________________ 4.50 5.50 5.15 6.50 6.00 5.00
Lambs__________________________________ 7.75 8.75 9.35 11.00 10.25 9.10
STOCKERS AND FEEDERS
Reflecting increased market supplies, shipments of
stocker and feeder livestock to the country increased
seasonally in August. However, shipments fell somewhat
short of the unusually heavy movement of a year ago,
with cattle shipments 8, calves 17, hogs 62, and sheep 14
per cent below the August ten-year average.
August stocker-feeder shipments from four markets:
Denver____________ _________ _____
Kansas City ________________
Omaha __________________________
St. Joseph _________ ___________
Cattle
11,224
65,895
30,314
5,589
Calves
1,029
7,733
1,789
1,012
Aug. 1938.__________________
July 1938______________________
Aug. 1937___________________
8 Mos. 1938._______________
8 Mos. 1937._______________
113,022
66,299
132,638
526,855
564,301
11,563
5,940
17,231
65,348
72,072
706
912
Sheep
34,054
47,209
70,432
16,007
3,710
2,920
5,712
30,859
29,441
167,702
61,580
199,210
478,051
536,950
Hogs
-n
2,075
Both cattle and hog prices are in a highly favorable
relationship to corn prices. The sharp break in livestock
prices last fall, however, resulted in severe losses to many
feeders and these losses may be restricting present feeding operations. The contracting of range cattle and lambs
for fall delivery has been very limited so far. While there
are 59me indications of a tendency to build up depleted
cattle herds, very little restocking has taken place through
purchase. Present indications are that an unusually
large number of cattle will be held over during the
winter because of favorable feed conditions.
Colo.__________
Kans.
---.-----_
Mo. __________
Nebr. ________
N. Mex. ____
Okla.__________
Wyo. __________
85
69
84
82
80
82
72
50
80
68
63
83
69
89
79
81
65
78
71
70
67
57
61
66
75
50
43
70
33
66
46
81
69
57
58
60
71
53
72
Farm Income
July receipts from the sale of principal farm products
in the District were 25 per cent less than a year ago, a
decrease of 41 per cent in income from crops, largely
wheat, being partially offset by an increase of 6 per cent
in income from livestock and livestock products, principally cattle and hogs.
In the first seven months of the year, income from
crops was down 31 per cent and livestock 9 per cent, and
the total was 16 per cent less than in the same period
last year. The table below shows that farm income, exclusive of Government payments, has declined the most
severely in Colorado, Kansas, Wyoming, and Nebraska
but scarcely at all in Oklahoma. Except in Wyoming,
Government payments so far this year have been somewhat smaller.
Income estimates of the Department of Agriculture:
CROPS
7 Mos.
1938
Colorado _____ _
Kansas _________ _
Missouri_ ____ _
Nebraska _____ _
New Mexico
Oklahoma ___ _
Wyoming______
10.1
57.9
19.9
17.5
3.3
36.7
2.1
LIVESTOCK
TOTAL
7 Mos. 7 Mos. 7 Mos. 7 Mos. 7 Mos.
1937
1938
1937
1938
1937
-(In millions of doliars)67.3
19.1
36.6
48.2
46.7
181.5
89.3
79.0
92.2
136.9
131.8
30.9
103.1
100.9
123.0
120.4
32.7
83.9
87.7
101.4
14.5
3.3
9.2
11.2
12.5
83.0
35.3
45.2
47.7
81.9
16.9
2.5
11.0
14.4
13.1
7 States________
147.5
213.1
368.0
402.3
515.5
615.4
u. s.______________ 1,868.0 1,166.0 2,325_0 2,412.0 3,693.o 4,238.o
NoTE: Government payments not included.
The purchasing power of farm products declined
slightly frQm the middle of July to the middle of August
The condition of ranges and pastures in the District · when .the ratio .of prices received by farmers. to prices
showed a considerable decline in August but, except for paid was 75 per cent. A ·year ago this ratio was 93 per
local areas, there ·is ample, well-cured feed and in most cent.
RANGES AND PASTURES
:REVIEW OF AGRlCULTURA.t AND BUSINESS CONDITIONS ..
a
Meat Packing
Operations at meat-packing plants in the · District
increased seasonally during August. Cattle and calf
slaughter, however, were about 6 and 25 per cent, respectively, below a year ago and 13 and 20 per cent below
the August ten-year average. Hog and sheep slaughter
continue somewhat above last year, with sheep slaughter
only 6 per cent below average. Hog slaughter still is less
than 60 per cent of normal.
August packers' purchases at markets in the District:
Denver.. ·-·····················
Kansas City.... ............
Oklahoma City............
Omaha ..........................
St. Joseph ....................
Wichita ........................
Cattle
17,455
61,662
23,765
71,465
20,694
13,358
208,399
Aug. 1938·---···············
July 1938......................
172,632
Aug. 1937......................
222,085
8 Mos. 1938.................. 1,377,822
8 Mos. 1937.................. 1,449,314
Calves
3,930
16,308
13,346
7,772
5,009
5,549
Hogs
17,526
103,741
22,092
68,031
43,560
20,961
Sheep
54,698
60,231
13,940
120,996
56,284
7,128
51,914
275,911
313,277
39,971"
220,284
264,114
69,055
203,990
272,012
324,385 2,275,117 2,525,093
425,887 2,088,877 2,556,040
Cold Storage Holdings
United States cold storage stocks of beef, which
usually increase about 15 per cent during August, showed
little change but holdings of butter and cheese continued
to increase at a rapid rate. Holdings of pork and lard
showed less than the usual decrease. September 1 stocks
of beef were 36, pork 31, lard 13, and shell eggs 25 per
cent below the average for that date during the past
five years, while stocks of poultry were 7, butter 44, and
cheese 33 per cent above the average. Except in 1935,
pork stocks were the lowest of record for September 1.
United States cold storage holdings:
Sept. 1
1938
Beef, lbs .............................. .
Pork, lbs .............................. .
Lamb and mutton, lbs .......
Poultry, lbs ........................ .
Miscellaneous meats, lbs .. .
Lard, lbs ...............................
Eggs, shell, cases............... .
Eggs, frozen (case equiv.) ..
Butter, creamery, lbs ........ .
Cheese, all varieties, lbs .. _.
Aug. 1 Sept. 1 Sept. 1
1938
1937 5-Yr.Av.
- - (In thousands of units)
36,211
35,925
44,582
56,930
334,459 378,981 367,595 482,481
1,836
1,972
1,928
1,877
54,992
52,640
63,733
51,595
60,272
60,808
49,330
67,198
116,682 123,677 118,094 134,765
5,950
6,411
8,390
7,930
3,573
3,867 . 4,579
3,405
201,543 172,622 134,885 139,958
150,343 134,351 122,647 113,314
Flour Milling
Activity at southwestern flour mills declined contraseasonally in August, reflecting the continued small
volume of flour sales, mostly on a hand-to-mouth basis,
largely as a result of further declines in :flour·prices which
are now close to the lowest level in ten years. Only a
relatively small amount of flour has been contracted so
far this crop year, in sharp contrast with.a year..ago:when
bakers had contracted about 75 per cent.of their. year'·s.
requjrements by Octob.er·l.: Despite.t}le :Federal subsidy,
exports have shown little improvement.- August flour
production, however, was slightly above the average of
the past ten years and was only 3 per cent lower than
year ago as compared with a decrease of 8 per cent for
the first eight months of the year.
Flour production reported by the Northwestern Miller:
Aug. 1938
657,000
226,000
138,000
1,121,000
Kansas City......................... .
Salina..................................... .
Wichita ..................................
Other cities ........................... .
Change from
July 1938
Aug. 1937
(In barrels)
-23,000
+80,000
+8,000
+38,000
-24,000
-52,000
+3,000
-125,000
Southwest.............................. 2,142,000
-36,000
-59,000
United States*...................... 6,057,000
+341,000
+465,000
*Represents about 60 per cent of total output in United States.
Petroleum
Daily average crude oil production in the District,
after reaching the lowest level in more than two years
in June, rose slightly in July and was about unchanged
in August at the July level. August output was equal to
the average during the past ten years but was 25 per
cent under a year ago. Total production for the year to
date shows a decrease of 19 per cent from last year.
Oil production reported by the American Petroleum
Institute and the Bureau of Mines:
Colo...............
Kans..... ........
N. Mex.........
Okla.·--·········
Wyo ...·-·········
August 1938
July 1938
August 1937
Gross D. Av.
Gross D. Av.
Gross D. Av.
----U-n thousands of barrels-)115
3. 7
109
3.5
130
4.2
5,046
162.8
4,869
157.1
6,229
201.0
3,313
106.8
2,927
94.4
3,445
111.2
435.7 13,941
449.7 20,165
650.5
13,507
59.1
1,730
55.8
1,721
55.5
1,831
5 States.......... 23,812
768.1 23,576
760.5 31,690 1,022.4
U. S............... 104,291 3,364.2 102,898 3,319.3 115,090 .3,712.6
Stocks of crude petroleum produced in this District
continued to decline in August and September, the total
decrease since the first of May now measuring almost
14 per cent. Posted prices of crude oil are unchanged but
gasoline prices are weak. Field operations have dropped
off sharply this year with about 35 per cent fewer wells
completed and a decline of more than 60 per cent in
new production.
Coal
Bituminous coal production in the District increased
season~lly during August. Ou,tput in August was only
7 per cent smaller than a year ago while that for the first
eight mo~ths of the year .was 23 per. cent less~
Coal output _estimated from reports of the National
Bituminous Coal Commission:
Change from
July 1938
Aug. _1937 _
(In tons)
· 323,000 ·
+57,000 · · · ...:80,000
494,<fQO .. +144,000
+28,000
100·,000 · · .. · +8,000
-30,000
137,000. . . · +69,000 . .. -~l,000
·-·~l~;00O· ·.. -4:~~1,0~~ : .... f~'O,~0~ ,
.Aug. 1938
Colorado......... :.:.:~.:...... :...... :.
Kansas and Missouri... .........
New Mexico ..........................·
1i~::~::-::.·::~: : ~: ~:-~.:::.:~.:~: ~:~.~-
Six states... _......................:.·... 1,467,000
United States........................ 28,280,000
+389,000
+4,923,000
-113,000
-5, 708,000
FEDERAL RESERVE BANK
Zinc and Lead
Production and shipments of zinc and lead ore in the
Tri-State mining district increased substantially further
in August from the low level of June. The zinc shipment
was 7 per cent larger than a year ago, with buyers continuing to take all supplies available, but the lead shipment was 16 per cent smaller than last year. About 50
mine and tailing mills are now in operation, the largest
number since early last December.
August shipments from the Tri-State district:
ZINC ORE
Kansas..................... .
Missouri._····-···········
Oklahoma ............... .
Aug. 1938..... _...........
July 1938..................
Aug. 1937... __ ···········
8 Mos. 1938·--·········
8 Mos. 1937___·······
LEAD ORE
Value
375,495
50,835
766,980
Tons
Value
2,355 $ 126,509
156
8,403
1,699
91,302
43,001 $ 1,193,310
25,790
715,710
40,262
1,723,361
241,441
6,588,544
321 ,419
13,296,243
4,210 $ 226,214
3,079
163,341
4,989
365,445
33,931 1,687,011
42,152 3,090,838
Tons
13,531 $
1,833
27,637
Notwithstanding increases in production, stocks of
zinc declined steadily throughout July and August,
dropping more t han 50 per cent from their high point at
the middle of the year, then rose slightly in the first week
of September. Ore prices advanced in the second week
of September.
Employment and Pay Rolls
Employment and pay rolls in the District as a whole
rose somewhat further from the middle of July to the
middle of August, reflecting in part seasonal factors.
Both employment and pay rolls are about 12 per cent
lower than a year ago.
Preliminary figures of the Department of Labor:
August 1938
per cent change from
July 1938
E mployment
Pay Rolls
Colorado ..........................................
+ 1.0
+3.6
+0.7
+2.7
Nebraska..........................................
+0.4
+1.0
+3.4
New Mexico·--·································
- 0.4
Oklahoma.... ....................................
- 0.2
+1.1
Wyoming..........................................
+ 2.5
+10.1
~i~::i~i·.~: :::::::::::::::::::::::::::::::::::::::
The value of construction contracts awarded in August
in this District was somewhat larger than in either the
preceding month or the same month a year ago, reflecting
largely an increase in awards for residential building.
For the year to date, non-residential awards are about
7 per cent less than last year while residential awards
show a decrease of 15 per cent.
Construction figures of the F. W. Dodge Corporation:
Aug. 1938._····-·····
July 1938............. .
Aug. 1937..._........ .
&Mos.'1938._...... .
8 Mos. 1937... ~·····
7
The value of August building permits issued in eighteen
District cities was about 18 per cent larger than a year
ago in contrast with a decrease of nearly 26 per cent in
the value of permits for the first eight months of the year.
The number of permits is little changed from last year.
August building permits issued in District cities:
ESTIMATED COST
PERMITS
Albuquerque, N. Mex.
Cheyenne, Wyo ...........
Colorado Springs,Colo.
Denver, Colo...............
Hutchinson, Kans .......
Joplin, Mo ...................
Kansas City, Kans .....
Kansas City, Mo.·-·····
Lincoln, Nebr.·-···········
Oklahoma City, Okla.
Omaha, Nebr ...............
Pueblo, Colo ...·--·········
Salina, Kans.·--···········
Shawnee, Okla .............
St. Joseph, Mo.·--·······
Topeka, Kans .............
Tulsa, Okla.·--·············
Wichita, Kans .............
37 EASTERN STATES
Residential Total
Resident ial Total
(In thousands of dollars)
3,511
10,667
.
99,732
313,141
2,571
9,434
87,978
239,799
2,333
9,313
73,448
285,104
21,490
79,900
586,748 1,850,546
25,261
87,984
671,101 2,101,452
1938
1937
1938
1937
67
101 $ 127,000 $ ·147,000
58
40
567
83
20
79,000
18,000
647,000
36,000
28,000
63,000
176,000
263,000
506,000
196,000
37,000
39,000
9,000
13,000
132,000
349,000
199,000
70,000
38,000
581,000
48,000
30,000
37,000
159,000
113,000
408,000
177,000
70,000
12,000
10,000
14,000
137,000
212,000
207,000
2,011 $ 2,917,000
2,067
2,817,000
16,054 22,353,000
$ 2,470,000
3,988,000
30,009,000
59
50
503
115
20
49
44
143
203
208
169
63
20
17
13
90
181
279
133
158
191
128
58
16
13
25
85
93
219
August .......................... 2,270
July ............................... 1,941
Eight months .............. 15,640
Lumber
Board feet sales of lumber at reporting retail yards in
the District in August were nearly 8 per ·cent larger than
in the same month last year. For all other months this
year except June, however, sales have been below a year
ago and total sales for the year to date are 7 per cent
less than last year.
Collections on amounts outstanding averaged 32.0 per
cent in August as compared with 33.5 per cent in July
and 32.2 per cent in August a year ago.
Lumber trade at 156 retail yards in the District:
+~:g
Building
TENTH D ISTRICT
OF KANSAS CITY
Sales of lumber, board feeL.................
Sales of all materials, dollars ............... .
Stocks of lumber, board feet ............... .
Outstandings, dollars.-.......................... .
August 1938
per cent change from
July 1938
August 1937
+8.3
+7.6
+5.9
- 4.8
- 2.0
- 9.1
+3.6
+5.6
Life Insurance
Life insurance sales in the District in August were 6
per cent lower and in the first eight months of the year
14 per cent lower than in the same periods last year.
The Life Insurance Sales Research Bureau report:
Colorado ................................
Kansas
...................................
.
.
.
M lSSOUrL _ •..............................
Nebraska............................... .
New Mexico.---·····················
Oklahoma ............................. .
Wyoming............................... .
Seven states .. ........................
United Stateij._.._.., .•..............
Change from
Aug. 1938
July 1938 Aug. 1937
(In thousands of dollars)
4,780
-8
-579
6,979
+608
- 1,321
15,651
+168
-777
5,173
- 146
-167
1,093
+ 49
-236
7,751
- 375
+340
1,182
-210
-154
42,609
470,917
+86
+13,6~3
-2,894
.,..75,l{>O
8
REVIEW OF AGRICULTURAL AND BUSINESS CONDITIONS
NATIONAL SUMMARY OF BUSINESS CONDITIONS
By the Board of Governors of the Federal Reserve System
INDUSTRIAL PRODUCTION
FU CENT
"IIIClNT
140
140
130
130
120
120
110
110
100
100
Industrial activity increased considerably in August and advanced further in
September. Factory employment and pay rolls also showed a substantial rise in
August, and distribution of commodities to consumers increased seasonally.
PRODUCTION
60C
Volume of industrial production showed a further considerable increase in August,
and the Board's seasonally adjusted index rose from 83 to 88 per cent of the 1923-1925
average. In manufacturing, increases in output were general except in the automobile industry where there was a sharp seasonal decline as plants were closed for inventory taking and for preparations for the shift to new model production. At steel
mills, where activity had risen considerably in July, there was a further advance in
August and production was at an average rate of 42 per cent of capacity as compared
with 35 per cent in the previous month. Output of lumber and plate glass also increased. In the textile industry the sharp advance that had been under way since
early summer continued. Mill consumption of wool and cotton increased further,
and deliveries of rayon were maintained at the high level reached in July. Shoe
production showed a further increase and activity at meat-packing establishments
showed less than the usual seasonal decline. Production of bituminous coal and crude
petroleum increased somewhat further.
In the first three weeks of September steel ingot production continued to increase,
while automobile production remained at the low level reached in August. Output
of crude petroleum was reduced, .as wells in Texas were closed on both Saturdays
and Sundays, whereas in August only Sunday closings had been required.
Value of construction contracts awarded in 37 Eastern States increased considerably in August, according to figures of the F. W. Dodge Corporation. The increase
was in publicly-financed projects and reflected partly the expansion of the Public
Works Administration program and the award of the first contract for the slum
clearance projects of the United States Housing Authority. Awards for private
residential building continued at about the same rate as in July and were close to
the level reached in the spring of 1937. Commercial building, which had increased
in July owing to the award of a contract for a large office building, declined in
August to about the level of other recent months.
BILLIONS Of DOU.ARS
Factory employment and pay rolls showed a marked rise from the middle of July
to the middle of August, while in nonmanufacturing industries employment showed
little change. The number employed at factories producing durable goods increased
for the first time since the summer of 1937 and in the nondurable goods industries,
where employment had increased in July, there was a further rise. Most leading
industries reported increases in the number of workers.
90
90
80
80
70
70
60
60
1934
1935
1936
1937
1938
Index of physical volume of prorluction,
adjusted for seasonal variation, 1923-1925 average= 100. By months, January, 1934, through
August, 1938.
CONSTRUCTION CONTRACTS AWARDED
II ILLIONS OF 00LLM:
MI.UONS'cW'DOU.AR:1
600
300
1t2e 1930
1931
1932
1933 1934
1935
1936 1937
ta
Three-month moving averages of F . W. Dodg e
data for value of contracts awarded in 37
Eastern States, adjusted for seasonal variation.
Latest figures based on data for June a nd July
and estimate for August.
EMPLOYMENT
MEMBER BANK RESERVES ANO RELATED ITEMS
BIUJONS Of DOLLARS
14
14
DISTRIBUTION
Distribution of commodities to consumers increased seasonally from July to
August. Department store sales showed about the usual rise and mail-order sales
increased, while variety store sales declined. In the first half of September sales at
department stores increased more than seasonally.
Freight carloadings increased somewhat further in August, reflecting chiefly larger
shipments of miscellaneous .freight.
2
I
[- RESERVE BANK
CREDIT
i
2
COMMODITY PRICES
_,. __
/'\
1934
1935
1936
1937
193 8
Wednesday figures, January 3, 1934, through
September 21, 1938.
MONE.Y RATE.S IN NEW YORK CITY
PER Ct1IT
PERCENT
4
4
Prices of silk and rubber showed some advance from the middle of August to the
third week of September and there were also increases at the end of the period in
nonferrous metals. Wheat prices fluctuated considerably but showed little net change
in this period. Prices of cotton and wool declined somewhat, and there were further
decreases in prices of some finished industrial products.
BANK CREDIT
0L-_ __ j __ __
1934
1935
L __
_c'---'L-----===-~0
1936
1937
1938
Discount rate of Federal Reserve Bank ;
weekly averages of daily yields on 3- to 5-year
Treasury notes and on Treasury bonds callable
after 8 years, and weekly average of daily
dealers' quotations on 90-day Treasury bills or
rate on new bills offered in week. For weeks
ending January 6, 1934, throuJb September
17, 1938,
A heavy inflow of gold from abroad during the five weeks ending September 21
resulted in an increase of over $500,000,000 in the monetary gold stock. Member
bank reserves were increased by Treasury payments for gold acquired but were
sharply reduced in the last week of the period by payments to the Treasury for
cash purchases of new securities and quarterly income tax collections. As a consequence of these transactions, excess reserves, which had increased to $3,130,000,000,
were reduced to $2,740,000,000 on September 21.
Total loans and investments of reporting member banks in leading cities increased
sharply during August and the first three weeks of September, reflecting chiefly an
increase in holdings of United States Government obligations. Balances held in
New York City for foreign banks showed a substantial increase.
MONEY RATES AND BOND YIELDS
The average yield on long-term Treasury bonds increased in September from the
low-point reached at the end of August. The average rate on new issues of Treasury. bills increased to O.U per cent, compared with 0,05 per cent. Yields on high..
grade corporilte bonds incre~sed slightly.
@FedFRASER