The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1922-10-06
NINTH FEDERAL RESERVE
DISTRICT REPORT
GRAIN PRICES DROPPED
Marketing Rye, Cattle and Sheep
Abnormally Heavy; EN-
ployment Normal
Associated Press nispatchl


and business conditions in the Ninth
Federal Reserve District, has been
issued by John II. Rich, federal re-
serve agent, was issued today. In
his October resume Mr.. Rich says:
The prices of all grains have de-
clined, and some of them heavily.
This has tended to minimize the ad
vantage of a big crop. Marketing
OF rye, cattle, and sheep has been
abnormally heavy and all live stock
prices have declined for calves, the
latter being sustained by the sub
stantial movement of feeders back
70 the farms. Lumber, copper. and
iron ore production as well as build
ing and most manufacturing has
been compared with last month and
year ago. Employment has been
normal and accumulated stocks of
merchandise and materials have not
changed greatly except for some de-
clines in lumber. The crop moving
demand for money to date has not
been heavy. interest rates having
declined substantially. and invest
ment funds are in much better sup
ply. However the general improve
ment both in volume of business
and financial conditions has not
helped profits sufficiently to reduce
UdSIhSoS " a hOl maj iSNSi-
II will require several months to
determine whether the apparent
gain in the momentum OF business
in this district will continue in the
face of a coal movement up the
lakes equal to but six per cent OF a
year ago and if the present price Is
maintained for the grains.
Taking General Survey
pricaS at central markets in this
district for a majority of the pro-
ducts of the farm declined in Au-
gust from the July figure, due
rather to the weight OF supplies
than to decline in demand. Live
stock prices for the grades which
this office records show ed three de-
clines, one increase and two prices
unchanged. Heavy marketing OF
cattle and sheep broke the median
price of butcher steers S2.l5 be-
tween July and August and the me-
dian price of lambs but 25 cents,
the smaller reduction of the latter
being due to the increased demand
for breeders. Although there was
a decline from July in the receipts
of hogs, the abnormally heavy re-
CENTS forced hog prices to continue
the decline which started in May.
the slump this month amounting to
sl.25. The median price Of butcher
cows and stock and feeder steers
remained unchanged and the median
price of calves rose sharply Q.75),
rejecting the increasing demand for
feeder calves which has affected the
price month earlier this year than
a year ago.
Grain prices were all lower for
cash sales at Minneapolis in Au
gust than in July, as is to be ex-
pected when the new crop com
mences to reach the terminals. The
median price of wheat broke 80
cents between these two months,
showing the effect of weak Euro
pean support, as well as the heavier
: receipts. Rye, which sells on a
much lower level, was in extra
ordinary favor with European buy
ers and, therefore, declined less
than cents. Flax declined 25
cents, barley was of Z cents and
oats off more than 3 cents. The
median price of corn remained
practically unchanged.
Wholesale produce prices at Min
neapolis show ed increases in the
/. important quotations, except for
seasonal declines in vegetables.
Eggs, which have been selling at
, the lowest price in several years,
showed a sharp increase from 10
cents per dozen to 26 cents per
dozen. There were smaller in
creases in butter. veal and hens.
The price of the best -four has re
| manned unchanged since August Is
lat 1855 per barrel, which is the
lowest point in the present phase
of prices.
The Credit Situation
T-fa Tofnc at MlnnPanOllS
during the month ending September
Is made the most radical change
since this office began collecting
&. data in January, 1919. The present
rates are now we'll below any quo
tation in 1919. AS is customary at
this time of the year, the spread
between the highest and lowest
rates quoted for different classes of
paper became moreover. The custo-
mary rates quoted for most classes
OF paper declined. Customers
prime commercial paper now quoted
at Az and per cent declined l per
cent Demand, and 8 months paper
with stock exchange collateral as
security now quoted at per cent
declined ! per cent and longer ma
TURTLES declined one half per cent
to 5b per cent level. Bankers
acceptances declined three fourths
per cent; inter bank borrowings,
paper secured by warehouse re-
ceipts and commercial loans secured
by government bonds declined one
half per cent; but rates for prime
commercial paper purchased in the
open market and having to 8
months maturity increased one
fourth per cent.
The credit situation in this dis
trict has given little indication of
crop moving demand. This Federal
Reserve Bank did not show any
change in holdings of discounted
bills during August, but there was
an increase in reserves of ~ mil
lion dollars, a decline in United
States securities owned of one mil
lion, and an increase in deposits of
one half million. Moreover, in the
first two weeks of September, bills
discounted declined one half million
dollars and federal reserve notes
outstanding increased two and one
half millions, both ofswhich changes
were reflected by rise in reserve
of more than four millions.
During the month of August thir-
ty.three selected member banks To-
Gated in the larger cities did expert
ence an increase in loans OF fifteen
million dollars, but this was made
possible by an increase OF deposits
of 6 millions and the sale of mil
lions from their United States sec
urities. And in the first two weeks
fhaiY. 1nonc innTQoG sod