CRUP and BUSINESS ~(~N~ITIUNS IN THE ~ AS REPORTED SY THE NINTH FEDERAL RESERVE AGENT ~ . THE FEDERAL RESERVE ,~~-`- `"` To DISTRICT ' "~~~~~ ~ ~ ~ FEDERAL RESERVE BOARD "~li~ll'yY:- 70HN R . RECH, Chairman Boesd of I)iredora CURTIS L. IHOSHER, Seeretarr Bovd of Directors 7. F . EB~RSOLB sad Federal Reserve AEeat and Assiriaat Federal Reserve A>;ent Asaiataat Federal Raceme Aseat 82nd Report MINNEAPOLIS, M1NN. November 2$, 1921 providini the EDITORIAL NO'XICEa-Tiua report ie prepared month~r in the aQice o! the IFCderai Reserra Asent !or the purpose of enrrent bnsinesa conditions is the Northwest. TJader present mnditiona it is shoo- pnblic with aeeaeate and impartial information eoanrnins free of charze lately essential that correct information be assiIabls for those who mast mobs basinep decisions. Thin report wi7I bs mailed to anT responsible person who makes request for 3t. CONDENSED SUMMARY. corn production in this district has exceeded tree 1920 record by nearly 17 million bushels. This in- of grain reached and creased production with increases elsewhere, and the The heavy movement crop has depressed prices passed its peak in October and the usual fall run large carryover of the old sheep is developing. Unfor- to the lowest level of the year. Many stories arc cur- of cattle, hogs, and it is more profitable in dollars tunately, these products have suffered, during the rent to the effect that particularly in the to burn the corn on the cob Eor fuel than to pur- month, a great decline in price, costs by wagon case of grain, which has made the problems of busi- chase coal, with the: transportation this district. Cop- and by rail which are necessary in such an exchange ness and finance more difficult in Although these cases of persona using per and iron mining are at low ebb, but flour pro- of products. normal. Retail trade has corn for fuel arc somewhat isolated and not general, duction is well above condition that epitomizes the prixrlary difficulty been stimulated slightly by the approach of colder it is a wholesale trade of the present business situation in the NoYthwest, weather and Christmas buying, but different commodities have has fallen considerably. Farmers are said to be namely, that prices of localities. Payments not been adjusted to the same extent and therefore burning corn for fuel in some is impossible. through hanks have increased but not as rapidly as trading in volume last year for this season. The most favorable de» velopment is the rnaintcnance of a substantial vol- were aearly with Give stock receipts in October ume of new permits for building construction double the movement in September owing to the: the resulting effects of increasing retail sales of lum- normal Eall movement which devdops with a peak ber and giving winter employment to skilled la- later in November. 'The cattle movement is not as boxers. Business failure totals are quite exceptional great as last year, but has been offset by the greater for this season of the year in this district. increases in number of head received of hogs and sheep. Shipments of feeders for fattening were much greater in October than in September, but not as SUMMARY FORTHE MONTH. great as a year ago. Cumulative". receipts for all kinds of cattle for the first 10 months of this year Grain receipts at Minneapolis and Duluth, total- were 10 per cent below 1920 ; and the shipments ing nearly 41 million bushels during October, were of feeders during the- same period were 20 per cent 14 per sent less than in September, although Minne- below 1920. apolis had an increases and the total was 2 per cent greater than a year ago. Elevator stocks at Minne- terminals exceeded 43 million Potato shipments for the crop year to date have apolis and Duluth in spite of bushels at the end of October, of which nearly 27 bee"_n nearly double those of a year ago and more than 10 millions the fact that the tota3 production is estimated to be mill"sons consisted of oats cent of wheat. These". stocks are ZO per cent greater than about one-eighth less than last year. Sixty per than double the stocks of a of the year's crop was reported as marketed by No- a month ago and mores car- year ago. Aa compared with last year there were vember 1 or a total shipment of over 25,000 increases of 19 million bushels in oats and about one loads from the four states of Minnesota, North Da- million each in rye, wheat, and corn. The 1921 kota, Montana, and South Dakota. 2 CI~OP AND BUSINESS CONDITIONS Nov~mbera8, Wav Price quotations developed a pronounced down- The volume of payments through the banks re- ward trend in October For the median prices of flects the combined effect of the heavy seasonal agri- grains as compared with September. The declines cultural marketing and the depression in the extrac were about 21 c per bushel in the cases of flax, wheat, tive industries and general manufacturing. Theat and rye, and about lOc per bushel for corn and bank debits increased but 3 per cent in the four barley. These declines continued into November weeks ending October 26 as compared with a sea- and in the case of wheat amounted to more than 8c sonal increaat last ycar of 1 3 per cent. Apparently additional in the first half of November. These de- there has been an increase in the total volume of clines appear to be due very largely to export con" business in the district but not equal to normal for ditiona. There has been a serious resulting effect this part of the year. Owing to price declines, the on the profits of farming, payment of farmers' debts, total of payments through banks for October was and the outlook for merchandising in this district. 30 per cent less than a year ago and the total for the The prices of- live stock declined SOc per cwt. for first 10 months of this year was more than 28 per steers and $1 -per cwt. far" calves, while hogs and cent below a year ago. atocker and feeder steers advanced but 25c per cwt. The tendency for live stock prices to hold Building permits granted during October dimin- more firmly than in the case of grains has relieved ished only 2 per cent in number while increasing 5 the situation somewhat in those sections depending per cent in total valuation as compared with Sep upon the marketing of their hogs to maintain their tember. The number of permits was 69 per cent purchasing power and to day debts. greater and the valuation ~2 per cent greater in October this year than last. These comparisons are Retail trade increased while wholesale trade de- all the more significant because of the prier de- clined. Retail trade in dollars increased about 9 clines which have taken place since a ycar ago. An per cent in October over September, but the net increasing proportion of the total is reported as be- gales were 13 per cent leas than last ycar and the ing devoted to new construction and constitutes one stocks 17 per cent less than last year. The rate of of the most promising factors in the outlook for turnover decreased in October. Wholesale trade in winter activity. all lines appears to leave been less in October than in September with the greatest declines in dry goods The retailers of lumber, in their reports, reflect (20 per cent) and agricultural implements (13 per the conditions of the building industry with sales 25 cent) . As compared with a year ago in October, per cent greater ixi board feet than in Septernbtr, wholesale sales of agricultural implements were and 15 per cent greater in dollar values; while man- about one-half, of dry goods, about four-fifths, and ufacturers report an increase of 21 per cent in of hardware about two-thirds, and collections gen- orders. This map soon be reflected in greater erally reported not to be as good as last year. activity in the lumber business as stocks of both retailers and wholesalers are less than a year ago, Copper mining continued at about 73 per cent while the lumber cut by manufacturers declined less than last year and iron ore shipments about 63 nearly one-fifth during the month. per cent less than last year in the month of October ; and both these industries indicated slight declines in Employment for labor has been sustained by the October as compared with September. The de- strength of the building movement which has been pression in the mining industry is counterbalanced to favored by exceptionally fine weather, and by the same extent by the increase of activity in flourmill- holdover of labor demand for moving crops and ing and linseed products. Flour production through- agricultural produce. Other sources of labor de- out the district increased 7 per cent in October over mand appear to indicate that there has been a slight September and was 23 per cent greater than a year improvement in the demand for skilled labor in the ago, while linseed shipments of oil increased 5 per larger factories in the Twin Cities, but a much cent and of cake increased 60 per cent over the pre- greater lessening of demand for unskilled labor, and ceding month. I:inaeed productson is about the clerical and domestic service. If there has been an same as a year ago and the Minneapolis flour pro- improvement in the general employment situation, it duction is fully 3 per cent greater than the 10-year has been but slight.