gar MONTHLY REVIEW OF AGRICULTURAL AND BUSINESS CONDITIONS IN THE NINTH FEDERAL RESERVE DISTRICT Jona R. Alrrcnu...T., Chairman of the Board L. Morass F. M. BAILLT POWILI. Ctrarts Otivait $. and Federal Reserve Agent Assistant Federal Reserve Agents Statistician Soria: Vol. IV ( No. 1641 Minneapolis, Minnesota September 29, 1928 DISTRICT SUMMARY OF BUSINESS tion of the price of ewes. The price situation is shown in detail in the full page chart on the fifth Business in the district is in the transition period page of this review. The net result of marketings between crop years. The effects of the old crop and prices was that the total farm income from year continue to be felt in some localities and in- wheat, rye, flax, potatoes and hogs was 13 per cent dustries, while the new crop is beginning to affect smaller during August than the income in August a other parts of the business structure. Debits to in- year ago. dividual accounts at seventeen representative cities The September 1 crop forecasts of the United averaged 13 per cent larger during the early sum- States Department of Agriculture showed only mer months than in the corresponding months last minor changes in this district from the forecasts a year. In August the increase over last years figures month earlier. All of the cash crops are larger than was reduced to 7 per cent and in the first three the ten-year average, with the exception of rye, but weeks of September debits were slightly smaller all of the cash crops are smaller than than in the same weeks last year. The reduction in a year ago, with the exception of durum wheat and potatoes. September, as compared with last year, was con- Feed crops are alI larger than the ten-year aver- fined to Minneapolis, Duluth, Aberdeen, Minot, age, with an important increase of 77 per cent in- Red Wing and Winona. The other eleven cities dicated for barley. The crops of corn and hay are showed good increases ranging from 5 to 24 per smaller than a year ago and the crops of oats and cent. barley are larger than a year ago, according to these Our country check clearings index gives further forecasts. evidence that business outside of the larger cities Relative Size of 1928 Crops in Minnesota, North continues larger than a year ago. In August the in- Dakota, South Dakota and Montana dex was 12 per cent larger than in August last year, and in the first eighteen days of September the Per cent index was 11 per cent larger than in the correspond- Per of the ing days last year. The greatest increase over last cent of average crop year (16 per cent) was in North and South Da- 1927 crop 1918-1927 kota. Minnesota and the portions of Wisconsin and Cash Crops Michigan which are in this district showed about a Spring Bread Wheat 98 127 10 per cent increase. Montana showed a very Durum Wheat 111 150 small increase. Winter Wheat 79 132 Rye 66 72 Detailed records of August business show that Flax 88 140 postal receipts, flour and linseed product shipments, Potatoes 104 108 building contracts, wholesale trade, country lumber sales and security sales were larger than in August a Feed Crops year ago. Department store sales, life insurance Corn 97 107 sales, building permits and warranty deeds recorded Oats 111 101 were smaller than in the corresponding month last Barley 114 177 year. Carloadings of freight equalled the volume Tame Flay 77 108 in August 1927. Business failures were only forty- Dairy products yielded 12 per cent more revenue six in number during August, the smallest number in July 1928 than in July 1927. The August figures since July 1921. are not yet available. Stocks of creamery butter in Farm income presents pronounced contrasts, the United States on September 1 were 27 million chiefly on account of prices. Prices of cash grains pounds smaller than a year ago, and were slightly have suffered a serious decline and were lower smaller than the five-year average, showing the rea- in August than a year ago, with the exception of son for the higher butter prices prevailing this year tye. Prices of livestock and livestock products are than a year ago. either very high or are well sustained, and were The prices of the various grades of beef cattle higher in August than a year ago, with the excep- are at the highest levels since the decline of prices ,!. •162 AGRICULTURAL AND BUSINESS CONDITIONS Septereber 29. 19A 60 so I-7 —I r 1 i Wheat Belt Cilia 5 4 Mixed Farming Citie s 140 i ■ 140 ■ 170 Will,11111 120 ■ MIR 0 111.101Fil ■■ ,00 1,,,i ir , ,,ii 610111111 . Ea ..A 11 1.1,10•EL 1,E. .•Ir ME • 4:1P.1 ii■ PP -1101 • ■1•1.1.1■Mt1,1= B MP ,REP. - -P-47MI:II loMML•l• MOIrlei.I •M •ict.mmi-1.10411 Debits to Individual Accounts at Banks in Cities and Regional Groups of Cities in the Ninth Federal Reserve District. Heavy curves represent figures adjusted to eliminate seasonal changes; light curves represent actual figures. at the close of the war. Hog prices are higher than DISTRICT SUMMARY OF BANKING last year, but have not regained the levels of 1925 and 1926. Sheep and wool prices are sustained at The reduction in borrowings by country banks the levels of the last seven years. However, it is from this Federal Reserve Bank is not progressing as rapidly this year as significant that the prices paid for ewes are at the a year ago. The peak of bor- lowest level in recent years, indicating a diminution rowings by country banks was a week later this year of the strong demand for breeding stock which has than last year, and the reduction from the peak has existed for a number of years. The United States been 1 million dollars smaller up to September 19 Department of Agriculture has advanced the date of than the reduction during the corresponding period publication of its wool production estimates. The last year. This is not necessarily a criterion of the 1928 wool clip in Montana, North Dakota, South total reduction in borrowings from this bank by Dakota and Minnesota amounted to 39 million country banks which may be expected, for the re- pounds this spring, which was worth approximately duction customarily continues until the first part of 15 million dollars at prices prevailing at shearing December. time. This represents an increase of 3 million dollars Country bank balances with city correspondent over the value of the 1927 clip. The lamb crop was banks in this district have failed to show as large 342 thousand head larger this year than a year ago. an increase this year as a year ago. Last year from Wool Shorn Lamb Crop the low point of the summer to the middle of Sep- (Thousand Pounds) (Thousand Head) tember there was an increase of 16 million dollars. This year the increase has been only 9 million 1927 1928 1927 1928 dollars. Minnesota .. 4,211 4,740 446 494 North Dakota 3.187 3,420 308 316 City banks in the district have experienced the South Dakota 5,160 5,644 439 506 customary increase in demand for loans. Commer- Montana ... 24,229 25,370 1,656 1,875 cial loans have increased 14 million dollars since Four States . 36,787 39,174 2,849 3,191 the low point of the summer, and loans secured by NINTH FEDERAL RESERVE DISTRICT 163 stocks and bonds have remained stationary. In- million dollars on June 30, 1928, showing a de- vestment holdings were reduced 4 million dollars in crease of 8 million dollars as compared with the the two weeks ending September 12. The increase same date a year ago and an increase of only 1 in commercial loans has been accomplished without million dollars over the volume of loans on Feb- increased borrowing from the Federal Reserve Bank, ruary 28, 1928, when the lowest level was reached for increases in deposits "due to banks," other de- since 1916. As compared with the volume of loans mand deposits and time deposits occurred at the a year ago, there were increases in South Dakota same time. and Montana and decreases in the other states. NINTH DISTRICT BANKING POSITION— Investment holdings of banks in this district were JUNE 30, 1928 the largest in history on June 30, 1928, and amount- ed to 600 million dollars. Every state showed an Deposits of all banks in the Ninth Federal Re- increase in investment holdings during the last year. serve District on June 30, 1928 amounted to 1,677 The combined increase was 73 million dollars. million dollars, an increase of 62 million dollars over the total a year ago. The volume of deposits Borrowings by banks decreased I million dollars in the district now is approximately the same as the during the year. Country banks reduced their bor- average held during the last eight years. The in- rowings 5 million dollars and city banks increased crease in deposits over last year was shown by city their borrowings 4 million dollars. and country banks alike, with the exception of coun- try banks in Minnesota and North Dakota. De- Real estate holdings of banks in the district were posits in the portions of Wisconsin and Michigan reduced 5 million dollars during the year. The num- which are included in this district are at the highest ber of banks decreased by 124.