MONTHLY REVIEW OF AGRICULTURAL AND BUSINESS CONDITIONS IN THE NINTH FEDERAL RESERVE DISTRICT Sl 1, Vol. 7 (Mori 3/ Federal Reserve Bank, Minneapolis, Minn. September 28, 1937 August business volume equalled that of July. year but at country stores was somewhat smaller. Iron ore shipments and gold production set new However, retail sales at country stores during the all-time records. Bank deposits and loans and invest- first 8 months of 1937 continued to show a greater ments increased seasonally. Retail trade was nearly increase over sales during the same period in 1936 as large as August last year. Heavy grain market- than city department store sales. The mountain sec- ings and higher livestock prices raised farmers cash tion of Montana was the only section in the entire income well above August 1936. Corn and potato District to show a larger volume of sales in August prospects improved during the month. this year than in August a year ago. DISTRICT SUMMARY OF BUSINESS Retail Trade % Aug., The volume of business in August was about as No. of 1937 of % 1937 large as in the preceding month and in August last Stores Aug. 1936 of 1936 year. The country check clearings index was the Mpls., St. Paul, Duluth-Superior .. 21 100 06 highest on record and the index of bank debits at Country Stores 447 96 08 farming centers was as large as in any month since Minnesota—Central 31 96 10 1931. Minnesota—Northeastern 16 98 12 Minnesota—Red River Valley.. 9 96 12 Minnesota—South Central . 32 99 17 Northwestern Business Indexes Minnesota—Southeastern 19 100 12 (Varying base periods) Minnesota—Southwestern 43 94 09 Aug. July Aug. Aug. Montana—Mountain 13 109 06 1937 1937 1936 1935 Montana--Plains 38 94 04 Rank debits-94 cities 87 87 86 73 North Dakota—North Central.. 15 94 !1 13 92 Rank debits—farming centers 90 88 90 71 North Dakota—Northwestern 18 06 Country check clearings. 156 149 155 127 North Dakota—Red River Valley 25 93 86 89 86 80 North Dakota—Southeastern 28 89 05 Department store sales. 76 89 88 85 82 North Dakota—Southwestern 6 97 Country lumber sales 02 84 87 85 69 South Dakota—Southeastern 16 94 Miscellaneous carloadings 85 02 65 65 65 60 South Dakota—Other Eastern. 55 L. C. L. carloadings South Dakota—Western 9 99 96 Bank debits in most of the sections of the District Northern Wisconsin and Michigan 39 99 14 West Central Wisconsin 40 97 I were higher than in August last year. The largest increase was in the wheat and mixed farming sec.. Retail sales at 472 country lumber yards were tion where the volume of early marketings of 1937 larger in August this year than in the same month crops exceeded that of August 1936. Carloadings a year earlier. Stocks of lumber and accounts re- of ore, grain, coke and forest products were all ceivable at these yards were both considerably ,jarger in August than in the same month last year larger at the end of August this year than at the and miscellaneous and LCL carloadings were end of August 1936. about equal to the August 1936 volume. Total car- loadings were 11 per cent larger than in August last Mining activity in the District during August con- tinued great. Iron ore shipments approximated 11 year. million tons and were the largest on record. Copper Building permits at most of the 18 reporting cities production was larger than in any August since in the District were larger in August than in the 1929. The production of gold during August was same month last year, both in number and in valua- the largest in any month and silver production tion. The increases were not great, however, and larger than in any August in our 14 year records. the large decrease at Minneapolis resulted in a de- There was a small reduction in the number of em- crease for the 18 city total. Residential contracts ployees during August. awarded as reported by the F. W. Dodge Corpora- Other indicators of business volume showing in- tion showed an increase of 15 per cent but total creases over August of last year were electric power contracts awarded in this area were somewhat consumption, warranty deeds recorded in Hennepin smaller than in August last year. and Ramsey Counties, butter production and whole- Retail trade at city department stores during sale sales of hardware and shoes. There were de- August very slightly exceeded that of August last creases in the number of mortgages recorded in 90 AGRICULTURAL AND BUSINESS CONDITIONS September 28, 1937 Hennepin and Ramsey Counties, flour production, linseed and flour shipments from Minneapolis and ADVERTISEMENTS OF DWELLINGS FOR RENT the receipts of all classes of livestock at South St. empoilm EN 00 Paul. 2 puir Business failures as reported by Dun and Brad- . wil .411111= MN 5 street were smaller in both number and liabilities 5 • 1111 k I , 0 than last year. The number of non-farm real estate INE vili 1 foreclosures in the four complete states of the Dis- trict in July as reported by the Federal Home Loan :111VM11111 A ■a Bank Board was 11 per cent larger than in July Ilgraw_,,,Ar -.,,w,■.. NE I 1936. Mr,om ' A 4%.. 1111111111 So r AV ...- 40 ArI roe 4 The current housing situation in Minneapolis dif- npi,,,,,4- ill fers from that of the two preceding years according CEI5333 to our indexes of advertisements of dwellings- ° 0116.9d- 4ri1r . 1!)KZErdE1•11WV•Als.4alliCAMEEEINMOILTI .J. • wanted-to-rent and dwellings-for-rent presented in Number of "Dwellings for Rent" advertisements by the two curves on the accompanying "Rental Ad- classes in Minneapolis newspapers. vertising in Minneapolis" chart. After declining each year from 1931 to 1934, the wanted-to-rent index rose slightly in 1935 and sharply in 1936. A further DISTRICT SUMMARY OF BANKING rise in 1937 is indicated by data for the first eight City Member Banks. Demand deposits at weekly months. The dwellings-for-rent index, largely be- reporting member banks increased $19 million in cause of depression-forced doubling-up of families, the four week period ended September 15. Loans continued to rise in 1931 and 1932 while the to customers continued to rise and were $5 million wanted-to-rent index was declining most rapidly, larger than four weeks earlier. Investments in gov- but fell sharply in the succeeding years. In recent ernment securities increased $4 million, cash and months there has been a slight increase in the num- due from banks increased $1 2 million and other ber of dwellings-for-rent advertisements, partly be- assets decreased $2 million. On September 15, de- cause of their greater effectiveness during periods posits were $3 million larger than one year earlier, when renters are actively seeking new locations and reserve balances with this Federal Reserve Bank were partly because of the large number of changes that up $15 million and balances due from other banks usually accompanies increases in rental rates. As the decreased by the same amount. Loans to customers chart indicates, movements of the two curves are were $15 million larger than a year ago and invest- generally in opposite directions, although they were ments about $13 million smaller resulting in a small parallel in 7 of the 18 years. Changes of direction increase in earning assets. in the wanted-to-rent curve tend to foretell similar directional changes in the dwellings-for-rent curve Country Member Banks. Between the last half by preceding the latter about 2 years. of July and the last half of August gross demand deposits at country banks increased $2 million and 0 time deposits increased by a like amount. Reserves RENTAL ADVERTISING IN MINNEAPOLIS 523-1926 • WO with this Federal Reserve Bank were unchanged but balances due from other banks increased $3 mil- al 0 lion. Between the last half of August this year and II 7:51 =MI 11.1 I 75 the same period a year ago, gross demand deposits ■ 50 decreased slightly and time deposits increased $10 million. There was an increase of about $23 million i25 Elm x_t. 25 MELLING– . OR RENTMNin in the earning assets necessitating reductions of $1 1 . I million in balances due from banks and $3 million g Ai ii -- s., Eill Me 75 in reserves with this Federal Reserve bank. 5 WA a- CREE-N . ■=111 ■ 50 ill I I 0 Deposits at all commercial banks in the Ninth Federal Reserve District increased $1 3 million be- 25 IIPF • • 5 tween March 31 and June 30 according to call re- NM Iii• a5alMr#1• AVIV raii•No• • • llAY441/4Ein arKr: 4111A1, imr. .1. .n:Yi • Z11 port abstracts. Loans increased $16 million, invest- Annual Indexes of "Dwellings Wanted" and Dwellings ments decreased $4 million and cash and due from for Rent" advertisements in Minneapolis newspapers. banks decreased $6 million. Borrowings increased from $65 thousand to $121 thousand. The chart "Advertisements of Dwellings for During the four weeks ended September 15, bills Rent" shows the number of advertisements for each discounted by this Federal Reserve bank for mem- class of dwelling. The number of advertisements for ber banks and industrial loans both declined the year to date indicates a small decrease in the slightly. The discount rate for member banks was number of houses offered, a very slight increase in reduced to 11/2 per cent for the first time at this the number of available duplexes and a substantial bank on August 24.