Monthly Review of Agricultural and Business Cgni~Itigns 1N the Ninth Federal Reserve District
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MONTHLY REVIEW OF AGRICULTURAL AND BUSINESS CGNI~ITIGNS 1N THE NINTH FEDERAL RESERVE DISTRICT 7oux lt . Mzxrxar.t., Chairman of the Board Cvnrcs L.. Mnstisa j. F. Eaas~soLa and Federal Reserve Ageat Assistant Federal Itexrve Ageata Val. 111 11~1or~193~ Minneapolis, Minnesota December Z7, 1925 DISTRICT SUMMARY FOR THE MONTH year. This has been reflected in November car- loadings for grain and grain products, which were The outstanding event of November in this 2G per cent below last year. The median prices of Federal Reserve District was the marketing of all the grains during November as compared with a classes of live stock in very large amounts. The total year ago declined 15 cents for wheat, 18 cents for number of head v£ all varieties received at South St. corn and 34 cents far flax, and increased 23 cents Paul was ~~ per cent over a year ago. Hog receipts for durum, 1 ~4 cents for rye, 6 cents for oats and 1 reached record-breaking totals far November and cent for barley. As compared with October were 49 per cent larger than in ~etober in number medians, small declines were shown for all the of head. However, owing tv the large pxoportion grains, except durum and flax. Grain stacks in of stock pigs received, avexage weights were much terminal elevators at the end lighter than a year ago of November equaled . These extraordinary re- those at the end of October and were 1 ~ per cent ceipts of live stock wexe reflected in the check pay- greater than last year. ments through hanks in the cities having live stock terminals, the gains in individual debits over No- The physical volume of business, as measured by vember of last year being 23 per cent for South St. caxlaadings for November, was slightly larger than Paul and 1 fl per cent for Sioux Falls. In the face of a year ago. Gains in carloadings were shown for such heavy marketings some price declines were in- live stock, coal, coke, forest products and mer- evitable. Median hog prices dropped $ i .5Q per chandise. On the other hand, November shipments hundredweight, and other varieties of live stock de- of linseed products and flour and sales of lumber clined in price as compared with October median in board feet at retail yards scattexed throughout prices, lr is noteworthy that as compared with a this district, were substantially less than a year ago. year ago, price changes of five stock exhibited as many gains as losses, so that the live stock price sit- The money value of business transacted in this district, as measured by check payments through uation in general was fully as favorable as in No- banks in seventeen vember of last year. Shipments of stockers and cities, was below that in Novem- ber a year ago, declines being shown in all report- feeders during November were nearly double the ing cities total far the same month a year ago, hog shipments except Billings, Faxga, Helena, Minot, Superior, Lacrosse, Sioux Falls and South St. Paul. alone being mare than three times as large as Iast these year. Of the ~xrst four named are in the wheat belt, and the last two named have live stock receiving In this district grain receipts at terminals con- terminals. Sales at retail by department stoxes lo- tinued to exhibit totals below a year ago, the cated in twelve cities within this district were slight- volume in ly smaller than a yeax November being one-third below last x ago. Wholesale trade made -o CARLpApINC.S IV W~ OIaTRICF ALL CCtMMpp1~ICS ~~ r~ °°~~1~-_~.zo ~ .._i .a .z i. l_:.5-z:2-~-z~:zx_~.:.r.~:_z._~...::z~:~~ Debits to Individual Aeeouata at Banks in Eleven Cities r~eR~wrusraaru . _ . " ~ . ._ . aF the Ninth Federal l2.eaerve District . Heavy curve repre- Total Freight carloadings in the Northwestern District aents figures adjusted to eliminate seasonal changes; light by Months 1919" 192fi. Curve adjusted to eliminate season- curve represents actual, or unadjusted figures. al changes. 28~ AGRICUL~'URAL AND BUSINE55 CnNDITI0N5 necemi~er27.192b aroctr,f 770 ,ao¬ " sn Iplt 0 na ~~w~~~ ~arr~t~~-ar~wit~~lrrasa~wwx:ra.~ww~~r: 7~P[[ni ~E~CEX7 ere rro eo I I i f~ j dtf[u'Ch-S~acaiuut~' ... nI l~i ; f -ICV I i - "s I ~, yr __ _ _, ._- ~ '' : . I ~ _ ~J q i +a i _19 "twk~~rr rr arr rarwryae-;~-ss~rr ~:x~~w~x~ of OCfN tM d[YCENY !eo -- ~--~,__- .~ .. ,~,~ . 17i[5 { ._ I u70 I ~I Isf . , as f .. ,oo ~ I !,, __ R~ ___.. ._. 5coux F J ~~__._ -i T A F-~--'-'---` ..,. '...~ _. .. I ~ Ap d(V . _ ._ - ~~" i~ ~ i i52~ ,~raa~irrcr~.~rrt-rarri~ aw awraraGwws rr. ws:rr r Debits to Individual Accounts of Sanka in Cities and Regional Groups of Cities in the Ninth Federal Reserve District . Heavy curves represent figures adjusted to eliminate seasonal c3~anges ; light curves represent actual ~rgures. of vcrrcr a much poorer showing in November as compared with a year aga. Sales of shoes and dry goods wexe about one-fvuxth less, and of groceries and hard- ware about one-tenth less . Fvr the fifth consecu- i~w~ tive month, our computed ratio of Iess-than-carload ;1~~ ~~ shipments of merchandise to carlot shipments of f miscellaneous merchandise has declined in the northwestern region, indicating less forward buying. Prospective business activity, based upon build- www~" . ing operations as reflected in the total valuation of building permits granted at eighteen cities in this .- district, was ~4B per cent smaller in November than a za i ~ year ago. All sections of the district registered de- r. ~__. l _. .. .. , i f clines, except the group of four wheat belt cities, I , . ., .~~.,~-~ . which, combined, had a total valuation more than °~~~~- :EC's ~' ~sz~ : s.~~ double a year aga. As compared with (7ctober, the Lumber $alex by Country Retail Yards in the Ninth total valuation fnr the district increased much less Federal Deserve District, with Seasonal Changes Eliminated . than is usual at this season " (Or"'.gigal data was in board feet.) NINTH FE~?ERAL RESERVE DISTRICT 287 Ne, i0rv n, x . ea e .e abled banks to add 36 million dollars to their in- ,a -- vestment holdings. lnvestment Holdings of All $anka in Minnesota, North Dakota, South Dakota and Montana (QflU'8 omitted} June 30 June 30 ]une 3U ]une 30 1923 1924 1925 1926 s Twin City IVat'I ~~1 i ~1~ Banks . $ 59,44 f $ 55,1 Q2 $ 8D,900 $ 85,435 4 _ . Other Minn. ~l3kR, 154,742 17i,b69 221, l Ob 245,321 'Vorth Dakota . , 19,35b 17,864 35,166 35,OU7 z South pakota . 14,6 f 9 14,958 2b,545 29,815 4 ~'~__ _ ___ Montana . , . 2b,887 27,132 39,364 43,288 ~F~:-L~:O It37 ~ . .E_ __ ._ .__ . " - . f4i~7~F~=lli ' Valuation of Building Permits lasued at 18 Cities in the Four States . $285,545 $2$5,725 $4fl3,U82 $439,3b7 Ninth Federal Reserve District. Light curve, actual figures, Change during .. heavy curve, 12 months moving average. Year . , , . +1,TSV }-116,357 +3b,2a5 The banking situation in the middle of December The situation as to loanable funds of the banks is was not quite as favorable as at the same time last also shown by reports of security sales to hanks by year. However, there was considerable itxtprvve- representative Minneapolis and 5t. Paul investment ment as compared with a month earlier, this im- dealers. For the year ending June 30, 1924, sales provement being particularly noteworthy in interest amounted to 36 million dollars. In the following rates, which re-acted frorrx the recent peak during year sales increased to more than 54 millions and the crop moving season. in the year ending June 30, 192b, sales amounted i__..... ....._- tv more than 42 million dollars. During the pexiod from August tv November, 1926, which is the time vev.* ceu of year when banks usually have mare funds to invest in securities than at any other time of the year, security sales by these dealers amounted to only $ %2 million dollars, as compared with 1 5 2~3 millions in the corresponding four months a year ago. This is undoubtedly a reflection of reduced money returns from the crap this year. Iaterest Rates at Minneapolis an Prune $ank Loans, Commercial Paper and Federal Reserve $ank Loans 1918" 192fi. TOPICAL REVIEWS Investment holdings of banks in the Northwest have increased during recent yeaxs at a relatively rapid rate, while loans largely local or commercial have been declining. The following table gives Sales of Securities to Sanka hY Representative Investment the investment holdings of all hanks in the four Dealers in Minneapolis and St. Paul. complete states of this district on June 30 of each year from 1923 tv 1926 . It is important to note The distribution of deposits in the various ecv- the variations in the increase of investment hold- namic regions of the Ninth Federal Reserve District ings from year to year. As a result of small farm has been estimated on the basis of reports to this income in 1923, there was a very small increase office as Of June 3b, 1924, which are the latest re- in investment holding of only 1 million dollars in ports available. The volume of deposits outside of the year ending June 30, 1924. The 1924 income Minneapolis, 5t. Paul and Duluth, axe shown for provided greater debt paying power and the de- the several economic regions in each state in the cline in loans and increase in deposits enabled ~~anks table below.