The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1921-06-03
MAY BUSINESS REVIEW
REPORT NINTH FEDERAL
RESERVE DISTRICT
Agricultural Prospects Very
Promising; Building Per-
mits Doubled
Especial to The Free Pressl


year and wheat and rye appear to be in
excellent condition as is usually true at
this time of the Reeenty the fhe
without damage to the growing crop.
Range conditions are excellent for live
stock and live stock mortality has been
.,.ucn less than the ten years average
and much less than last year. The
movement of grains and live stock TO
market has been much less than in the
preceding month. Live stock receipts
were fully twenty per cent below year
ago, while grain receipts and grain
stocks in Minneapolis ana Duluth were
ten per cent greater than year ago
In the important industries of the dis
trict gains and losses in volume appear
to be equally numerous in relation TO me
previous month. There were substantial
declines in copper mining, and linseed
production. while iron ore shipments
were running substantially less than a
There was a slight Improvement in flour
production and shipments; and IN retail
trade; and a substantial improvement
in the lumber cut. shipped. and sold at
retail. When compared with year ago
both mining and lumber were much less
in physical volume but there was a sub
stantial increase in milling production
and flour shipments. ,-.
The outlook for satisfactory housing
aecoGmmodation is very Pro GaTb,aS
both in number and value as compared
with March and We're substantially larg-
er than in April a year ago. The reduc1
some building materials and labor are
reflected in the decline in average valua-
ton of the permits granted. There APP
pears to be an increased willingness TO
Initiate projects for home purposes with
each decline in costs. Unemployment
conditions have also been na,,c working ing
effective demand for housing:
Prices SecIIned During Month
Prices declined during the month
There were substantial declines in med
ian prices of all the grains. A majority
of the median prices for live stock at
wholesale declined. There were more
wholesale produce. Average retail prices
for food declined during the month
The cost of living. measured by all arti-
Giles, including food, was reduced slight
fected "f in Ff the how Of FEDERAL Reserve
Notes to this bank for redemption and
retirement. as many of the notes are no
longer needed in retail trade and wage
payrolls. The increasing retirements re-
fleet the changes that are taking place
in money values of service and COM
modites.
Credit conditions did not improve To-
cally. During the month member banks
experienced Withdrawals OF deposits.
while the federal reserve bank lost in
reserves and expanded its loans. Re-
discounting with other federal reserve
banks was necessary in order to meet
the demands from agricultural sections.
Interest rates declined fractionally in
the local market and at the federal re-
~
city banks are about twenty per cent
less than a year ago with reductions
reported for all kinds of borrowers ex-
cept country banks which are financing
agriculture. Local investment houses
report a sustained demand for securities
with increases in municipal bonds and
farm mortgage sales. The confidence of
the investing public is much better than
a month ago.
The volume of payments made
through banks in the month of April
was slightly greater than in the preced-
ing month These, payments increased
the increase between the same months a
year ago. About one-third of the total
increase for the district is due to the
opening of navigation on the, Great
Lakes which increased trade at the lake
ports. Navigation opened earlier this
year than last and resulted in a move
ment of coal cargoes to the head OF the
lakes very much greater than took place
a year ago.
Flowing and seeding were about ten
days further advanced this year than
the normal condition or May !: Spring
wheat planting has been completed in
Minnesota North and South Dakota, and
the small grains are being seeded rapid
ly. Flowing for and seeding OF corn Is
about finished May 18th. Planting. of
potatoes and sugar beets is continuing
under the most favorable conditions and
acreage. Seed potatoes are abundant
and very cheap especially in South
Pak0ta While the Mt cool weather
what it has caused no damage, and a
number of fields seeded early are well
above the ground The recent rains
tions of Montana where it was thought
irrigation would be necessary to insure a
moisture now in. sufficient quantity to
carry the crops through until the arrival
ii the June rains.
On the whole. winter wheat and rye
are in excellent condition for this time
of the year. Minnesota has abandoned
SO per cent of her acreage for winter
and South Dakota, ten per cent. There
has been some loss in. Minnesota from
alternate freezing and thawing. and
ditions of last fall and early spring.
Cutworms made their appearance in
the north central and central parts
caused some damage. The wheat which
remains to be harvested. however, has
an excellent stand. and from all esti-.
mates will yield greater number of
even though the acreage is somewhat
reduced. What is true of winter wheat
The outstanding. feature of the rye re-
port is the shrinking acreage in North
Dakota. In 1919 North Dakota harvest
$4,000 acres while in 1927 the acreage
to be harvested is but $4,000 acres.
This reduction is due to the hopper
menace which has destroyed many acres
Of. crops in North Dakota during the re-
cent years. The condition of rye is
above the average in North Dakota.
ranging from fair in the western coun-
ties to very promising in the eastern,
according to the Department of Agri-
culture report of May 9th. Vs.
1t is interesting to note that in 1920
four states within the Ninth Federal
Reserve District produced % per cent of
the fax, 81 per cent of the spring wheat,
81 per cent of the barley, and % per
cent Of the rye produced in the entire
United States.
General Price situation
During the month of April declines in
local prices predominated. The prices
of grains. live. stock and produce all
showed declines in important articles,
while the advances were fewer in num-
Der and in less important items. Med
ian prices of all cash. grains exhibited
declines. Very large decreases occurred
in three grains. fax which dropped nine
teen cents. rye eighteen cents, and
wheat fifteen cents; and more moderate
declines were exhibited in barley with
drop of six cents, oats five and one
half cents. and corn four cents per
bushel. These median. prices furnish an
index of conditions prevailing through.
out the month and are means for SIM
plifying the variations due to changes
l., la;I Al. /.