October 1921
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.ti1,~~w~++{, `~ IN T1ILr mss,:~.i`,~~p~ AS $EPOItTED SY TIIE NINTH : ~';, .=:'r:=-` FEDERAL RESERVE AGENT ~r" -~ t7; ~ TO TfiE FEDERAL RESERVE s DISTRICT = :'~'?~:~~~,~}~~~~ `~~ FEDERAL RESERVE liOA _ . ~~1,"'f, ~~ -.1Hx.x.V..~ <' IbHN H. RICH. Chairman Board of Directors CIIRTIS L. MQSFIER, Secretary B~ard of Directors ~ J. F. EBERSOI.g and Federal Reserve ASCnt and Assistant Fcderai ReserveAscn! Assistant Ftderai Reserve Agent t Slst Report MINNEAPOLIS, MINN. October 26, 1921 1;DITOFtFAL NOTIC)::-Thin report is prepared monthFy in tho o!lica of the ]'edaraI Iieserre dtrcnt for the purpose of proridin= the Dublic with accurate and impartial fnformatlon coneerntng current bnatness conditions fa the Northwest. Under present conditions it is abso- lutel7 essential that correct inFormation be available for those who must mallo business decisions. This report mill bo mailed free of eharse to any rcsponaiblt person tgho makes request for it. SUMMARY IF'Oi2 TYKE M®NTT-I. tember when compared with August, although fully one-fifth below September of the pzcvious year. Corn and potato prospects improved during the The volume of general business increased in month of Septembcx and the heavy August move- September, but the increase was probably less than ment of grain and live stock was exceeded in normal at this time of the year. Payments through Septembcx. The volume of general business in- banks increased 16 per cent in September as com- creased and employment conditions improved pared with August this year, whereas during the siightly during September as compared with August same two months last year there had been an in- but this increase was probably less than normal for crease of 20 per cent: The total volume in Sep- this season. Sales of investment securities increased tember was 23 per cent less than a year ago. This owing to improved confidence in market prices, is to" be accounted for largely by the price deolinea. Prices of grain, live stock, and produce exhibited Retail trade sales apparently increased i 0 per cent mixed tendencies. in September over August and the increase between the same months Last year was about three times as Crop estimates of October 1 indicate That the great. Federal Reserve notes outstanding increased total production of corn and potatoes will exceed less than one per cent in September, ~~"hereas the the estimates of August 1 and September i, but increase a year ago in the same month, was more there have been declines in the estimates of total than foux per cent. Postal receipts of the three production of wheat and oats. When the i 92 i pro- largest cities in this district increased four per cent duction of this district is compared with i 920, an in September and were ten per cent larger than a increase is found in corn, and decreases in wheat, year ago. Employment conditions improved in oats, and potatoes. Market price prophets must con- Septembcx, but this was due partly to the seasonal sider variations in demand as well as in production . increase from crop and milling demands. The level of employment is much lower than a year ago. Grain receipts at Minneapolis and Duluth totaled more than ~ 7 %g million bushels in September, which Price quotations exhibited mixed tendencies in a was about one-fourth larger than the August re- September as compared with August. AlI live stock ceipts and more than one-fourth. larger than the median prices declined except veal calves and receipts of September a year ago. There were in- lambs, while all grain prices increased siightly ex- creases in all of the grains except oats and barley. cept rye. Prices of wholesale produce xase and fell Terminal elevator stocks at Minneapolis and Duluth in equal number. The most significant price changes Combined increased from 3 i million bushels at the were the decline of ~ 1 .5 0 per c~,vt, in hogs and ~ 1 .00 end of August to 36 million bushels at the end of per cwt.tn butcher steers. 'September. The stocks at the end of September' we;e nearly three times as large as a year ago, all It is too early in this crop yezr to form a definite grains showing Increases. Live stock receipts of aI1 conclusion as to acre extent of debt liquidation that lands at South St. Paul were i 0 per cent greater in may take place in this district this year. Thirty-five Septembcx than in August, but one-fourth less than selected commercial banks in the larger cities v-arc ~ ycaF agn. Shipments of ft:cders of all kinds, it is called upon to supply to their customers only 9 mil- interesting to notice, increased 37 per cent in Sep- lion dollars net of money funds in Septembcx as CROi' AND BUSINESS CONDITTONS Octobor 26, ]9Z1 compared tivith i 9 millions net in the same month a 55,9,000 bushels. On October 1 spring wheat and pC 1 year ago. Reductions in loans and increases in gov» oats showed prospects of smaller yields than on th ernmcnt deposits enabled the Federal Reserve Bank September l , while tl~e prospective ~iroduction of in September substantially to reduce its rediscounts winter wheat and hay remained unchanged. ce zYith banks. The remnant of other Federal Reserve The October 1 estimate of rr< such rediscounts was paid off on Octobex 3. How corn production in d< long this position can be maintained is uncertain. 1921 (Table No. l ) shows an increase of 22,433,- OOG =.~ushels or 9 per cent over the final estimate for b~ released far in- the Ninth District in 1920. It should 1 cr Capital funds released or to be be profztablc m vestment purposes, when measured by the opera- to feed livestock this fall for winter marketing. The t tions of the more substantial local investment houses, October i estimate of wheat production was down 1 g' increased 32 per cent in September as compared 10,416,000 bushels from the final estimate for 1920, ah 'with August and increased 40 per cent as compared or a decline of about 7 per cent, and the production th. with a year ago, The increase this year is due en» of oats this year was estimated to be 95,714,000 agr- municipals and bushels or 32 per cent less tirely to the doubling in the sales of than the production last rep an increase of one-fourth in the sale of farm mort- year in this district. No estimate was made on questioned whether this di- October 1 for barley, rye or flax. nc gages. It may well be Ee~ version of savings away from business secuxities in- 'I'abte 1\to. $ de to municipals will be of much benefit to business Crop Estimates October 1 estimate Final eatimate an conditions in the long run. 1921 I920 num- Corn ,. .............,2$1,559,004 bushels 259,126,000 bushels r: Building projects decreased 17 per cent in Winter wheat.... 5,$03,000 bushels 6,fr59,000 bushels 3"- ber and 26 per cent in valuation in September as Spring wheat 129,302,000 bushels" 138,$42,000 buah~cls compared with August. As compared with a year Oats .:.... .... ......211,.153,000 bushels 30b,$67,000 bushels ago the number was greater by 5 4 per cent and the Hay ........ .......... i 5,492,000 tons . 17,895,000 tons ' valuation was greater by 93 per cent, Lumber cut The United States Department of Agriculture and shipped by manufacturers, retail lumber sales, has also increased its estimate of the potato crop. and wholesale and retail stocks of lumber all de- On August 1 the four states of 1V1`innesota, Narth .c creased in September as compared with August. Dakota, South Dakota and Montana were estimated And all the faregaing eYCagt manufacturers ship- to leave a crop of potatoes totaling 38,099,000 ments and stocks were less than for the same month bushels, but conditions on October 1 warranted an 0 a year ago. increase in the estimates for the four states of Lake traffic, measured by the volume passing 5,047,000 bushels, giving a total production of 43,- through the Soo Canal, declined 13 per cent during 14b,000 bushels. Montana showed a slight de- September, as compared with the preceding month ; cline in estimated production between August 1 and decreased 45 per cent as compared with a year and October 1 and the other three states showed iln ago. Cumulative totals for the season to date in» increases with Minnesota showing the largest gain. ~nc drcate a decrease in iron ore 'shipments of 58 per The greatest improvement occurred in the: Red River No cent Valley where weather conditions have beecz excellent lart cent and a decrease in coal receipts of 27 per var when comparisons are made with the preceding for late potatoes, although in that locality the early potato crop was almost a total failure. oat. year. the Flour production increased i 6 per cent in Sep- The total estimate for the potato crop in thi3 tl nri tember over August and 43 per cent over September district this year is, however, l 2 per cent below the th~z~ a year ago. A comparison of flour shipments indi final estimate of the crop last year. This reduction 1pc cates increases of 12 per cent as compared with was caused by an i 8 per cent decline in potato pro- the August aril 52 per cent as compared with Sep- duction in Minnesota and a 39 per cent decline in cots tember a year ago.