crease of 10 per cent a ton to producers. As an indication of the growing importance of this industry, it might be noted that in Colorado alone, in 1915, the sugar-beet farmers of that State received approximately $11,000,000 for their product from which 482,500,000 pounds of sugar were manufactured and that the factories employed 5,000 men. The Oklahoma cotton yield forecast is nearly double last year's, the estimate this season being 1,010,000 bales as against 639,626 last year. The increases in the feeder cattle and sheep movement from these markets for the first six months of 1916 over same period of 1915 were: Rainfall has been ample except for the upland corn in Oklahoma, and the ranges in parts of Wyoming and Colorado, where considerable moisture is needed. Heat records for two years are reported broken at various points. New St. Joseph. Mexico reports the dryest June since 1902. Labor conditions have greatly improved in the last month. Several strikes, which might have resulted seriously, have been settled. Local employment agencies report more applications for help than they can possibly fill, with an unusual demand for common laborers. The shortage of harvest hands, which was prophesied to be serious, was handled better than expected, and no more help is needed in the harvest fields. High prices generally have been the outstanding features of the markets in the district, hogs selling early in July up to $10.10, 55 cents higher than in any former July, while prime native steers sold up to $11.25 in June, the highest price in any former June being $9.50. Latest prices obtainable, compared with last year, show hogs at about $2 per hundredweight higher and good fat cattle at about the same price, with grass, medium, and commoner fat cattle some lower. Stockers and feeders are about the same as last year, with sheep from $1.50 to $2.50 higher. The half-year receipts of live stock at the markets in this district saw a substantial gain over last year, as did the feeder cattle and sheep movement, indicating an interesting growth in the industry as shown by the following state ments. The receipts of cattle and hogs at the markets named during first six months of 1915 and 1916 were: Kansas City. June brought the drilling of more than 1,500 wells in the Mid-Continent oil field, with an average daily production of about 70 barrels, forming an aggregate new production of more than 105,000 barrels a day. It is the prevailing opinion, however, that the maximum drilling energy has been reached, and that the June record will not be exceeded in the months to follow. The situation in the oil business is affected by the unsettled condition in Mexico, where the normal production was 22,000,000 barrels a year. The production of oil in the Mid-Continent field has reached 400,000 barrels daily. The shown by the fact that while the market price increase in the oil production of this field is also has not changed materially, the premium over the basic price, which was as high as 80 cents a barrel, is now down to 20 cents, the lowest it has been for some months. The premium in other fields has been off for some time. The outstanding feature of the petroleum industry during the half year just closed was the high level reached in the prices of crude oil in March, and maintained firmly to the end of the period, involving prices ranging from 90 to 350 per cent higher than those of a year ago for high grades. According to the report of condition of 826 State banks in Nebraska, there are 70,000 more depositors than at this time last year, and the deposits have increased $38,000,000 during the year, while the increase in deposits since the February report is $10,700,000. Reports on metal tell of record productions of both the base and precious metals, of smelters working under stress, of mines idle for many years being reopened and successfully operated, of the installation of millions of dollars' worth of new mining equipment, with immense sums paid for the metal output of the various States in this district. The only untoward incident is the announcement from Webb City, Mo., that operators upon low-grade properties will close their mines because of the low price of zinc ore and the high price of production through increased cost of labor and material. This district holds large stocks of unsold ore. Advices regarding general trade conditions are reassuring, indicating that the volume of business continues in large proportions and the outlook bright. All the leading cities continue to report noteworthy gains in postal receipts and building permits issued. Bank clearings continue to show gratifying improvement, the total in the Western States for June amounting to $859,146,734, an increase of 38.7 per cent over 1914 and 20.5 per cent over 1915. National-bank deposits in important centers show a decrease in totals on June 30, as compared with the last preceding statement of May. 1. This is not abnormal at this time of the year on account of harvest demands and remittances of interest and other payments to the East, but has resulted in a hardening of interest rates. All important railway lines in the district show an improvement in earnings. Jobbers and wholesalers express themselves as well satisfied with business during the first six months of the year. In dry goods there has been a marked increase in sales in lines used by the laboring man, indicating that he has been well employed, and a corresponding increase in the better dress fabrics, which is further evidence of increased purchasing power. It is not believed that merchandise has been bought in excess of consumption, but that rather the retailer has been conservative and has confined his buying to requirements. There has been a very active advance business in fall lines, probably the largest in many years, reflecting the strong position of the retail merchants throughout the district. Collections have been much improved over the first six months of last year. DISTRICT NO. 11-DALLAS. An extensive canvass of conditions, reaching every county in the State and practically every county in the district has brought somewhat conflicting but very interesting reports. The grain crop has been practically all saved without damage. It is larger than estimated a month ago. The oat crop, while not large, is not greatly below a fair average for the State. Since the July report heavy and adequate rains have fallen all over southwest Texas. Their effect will be to enable the stockmen of that section to raise some feed crops, and the general rains will undoubtedly help range conditions. The last 30 days have been trying on the corn crop, and the yield will not be as heavy as was promised earlier in the season. The early corn is fairly good, but a considerable part of the later planting is very poor, and some of it a complete failure. From inquiry, more exhaustive than any heretofore made, it is believed that the increase of acreage of cotton will not be above that stated in the July report and that an increase of from 10 to 12 per cent in this district is a liberal estimate. Boll weevils have appeared over practically the entire district, but, as a rule, have not so far done any considerable damage except in a very few sections. There has never been a year when cotton fields have been better cultivated, and, while the crop is late, the outlook continues good for a fair and possibly a heavy yield. The campaign for warehousing and gradual marketing of cotton continues, with satisfactory results. The condition of the rice crop shows no change of any consequence, and the outlook for satisfactory results for this product is still encouraging. Heavy crops of feed, hay, sorghum, cane, Kafir corn, Milo maize, and Sudan grass have been grown, and the production will be heavy pretty well throughout the district. The crop of fruits and vegetables in the eastern and southeastern parts of the State has been fairly heavy and prices better than usual. It is gathered from many sources that trade is feeling the usual summer depression. The demands on the Dallas bank, considering everything, have been lighter than might reasonably have been anticipated, and discounts are more than $600,000 below a corresponding date last year. The cattle and sheep industries of the western part of the district have been quite active, though there is some complaint that the ranges in the extreme west are getting short. There is some danger that the situation may become serious. Steers have not moved as freely as usual, and there has been a wide difference as to prices between the buyer and seller of this grade of cattle. Sales of sheep in New Mexico continue at good prices. The wool clip will be up to the average, though prices are not as high as were expected. Post-office receipts in the nine largest cities of the district show an increase of 15 per cent over the same month of last year. Records of clearings for the same cities show an increase of 7 per cent. Building permits in the principal cities of the district show an average increase of 23 per cent, operations in some of the cities being on a very large scale. Failures over the district for the period from June 15, 1916, to July 15, 1916, as against the same period of last year, are as follows: 1915, 68 failures, $778,492 liabilities; 1916, 27 failures, $115,560 liabilities. There has been little change in the price prevailing for copper and activity of this interest in Arizona has affected business very favorably throughout that section. There has been a substantial increase in the output of the oil in the district and prices continue good. There has been a slight decrease in the output of the lumber mills of the State, and orders have not been on so large a scale, though there is no substantial change in the price. Business generally has been fair only, the increase over the last year being nominal. Collections, however, seem to be more satisfactory than usual. There has been a considerable increase, both in transportation of freight and passengers. Cotton is just beginning to move in the extreme southern end of the district. In the Panhandle district the crop is making fair progress, fields are clean, and as a rule there has been sufficient rain. In the western part of the State the cultivation of the crop has been good and it is fruiting well, with boll weevils reported present at a few points. In north Texas the cultivation of the plant has been good, few boll weevils, and the plant in general is in excellent condition. The same condition is true as to central Texas, except that there is complaint of drouth in some sections, and a pretty general report of boll weevils, though it is generally agreed that in view of the dry weather that they have so far done little harm. In eastern Texas the condition generally is favorable, the cultivation of the crops excellent, and the fruiting of cotton progressing satisfactorily. Excluding southwest Texas, the crop is southern Texas as a rule needs rain, and there is considerable complaint of boll weevils, and, considering the latitude, the crop is substantially later than usual. Labor continues to be well employed, and in this section, as a rule, is contented. With continued marked economy in the production of the present crop, and a fair and reasonable return for it, there should be an unusually prosperous year. DISTRICT NO. 12-SAN FRANCISCO. Moderate general expansion of business continues. Bank clearings in 17 cities show an increase in June, 1916, compared with June, 1915, of approximately 30 per cent, Seattle showing 105 per cent gain. Both the deposits of member banks and their loans show increases over the corresponding date last year. Between the Comptroller's two calls, May 1 and June 30 this year, the rate of increase in loans has been greater than during the preceding 10 months and greater than the rate of increase in deposits. A faster pace of loan increase suggests the probability of firmer interest rates and is, of course, one of the first signals for caution. Building permits in 17 cities during June increased about 12 per cent over the total of the corresponding month last year. Growers of live stock continue to benefit largely by exceptionally high prices. The wool clip has been largely marketed at prices approximating 30 cents per pound. In the Northwest wheat acreage is materially less than for the last two years. Recent. reports indicate weather conditions more favorable than in the early spring. Present estimates are that the crop will be 55,000,000 to 60,000,000 bushels, with about 15,000,000 bushels carried over. Lack of bottoms has The lumber situation in Washington, Oregon, forced shipments by rail, a factor of greater and California is less promising than a month transportation cost which affects prices unago. There has been a slackening of activity with softening prices. Many mills which a The barley crop is reported about normal. short time ago were operating at full capacity A heavy export demand has resulted in exare now running on short time and some are ceptionally high prices. The hay crop is short shutting down. The apparent overproduction and high prices rule. Beans and sugar beets, is attributed in part to difficulties in transpor- both important crops, are commanding unusual tation due both to lack of bottoms and to the prices. longshoremen's strike, affecting the entire Pacific coast. There is expectation of renewed activity during the fall months. Metal mining continues without abatement its exceedingly profitable activity. Petroleum production in California during June averaged 255,451 barrels per day, a daily increase over May of 6,000 barrels, but shipments were 304,546 barrels, a new high record. During the first half of this year storage stocks decreased 5,947,133 barrels, a daily average of 32,677 barrels. Crude petroleum in storage June 30, 1916, amounted to 51,199,918 barrels. Prices to producers have been advanced during the past month about 5 cents per barrel. favorably. Although the production of certain deciduous fruits will be less than normal, growers will average unusual returns because of the prevailing high prices. For instance, a single carload of California cherries sold in New York for $5,081. Canners are paying for peaches more than double the prices paid last year. Shipbuilding on this coast is active beyond all parallel, but there continues a great shortage of ships. Railroad tonnage has been heavy, increased by the lack of ships, and earnings, both gross and net, are larger. The financial, commercial, and industrial outlook in this district is favorable. DISTRIBUTION OF DISCOUNTS BY SIZES September, 1915, the date of the first discount of this class of paper, was $3,762,000. AND MATURITIES. Commercial paper to the amount of $11,660,000 was discounted by the Federal Reserve Banks during June, a total of about 4 per cent in excess of the total for May, though about 13 per cent below the corresponding total for June, 1915. Of the total discounts for the month, 53.8 per cent, as against 58.2 per cent in May and 66 per cent in June, 1915, is credited to the three southern banks. Chicago reported a total of $1,564,300 discounted for the month, the greater portion being agricultural paper. The total discounts for the first six months in 1916 were $62,543,600, compared with $72,743,800 for the corresponding period in 1915. Commodity paper included in the above total and discounted during the month by five Federal Reserve Banks aggregated $712,000, as against $899,400 for May, and constituted a little over 6 per cent of the total discounts for the month, compared with about 8 per cent for May and about 15 per cent for the first five months of the present year. Practically the entire amount was cotton paper and was handled by the Richmond and Atlanta banks, of whose total discounts for the month commodity paper constituted about 18 per cent. The total of commodity paper discounted during the six months of the present calendar year was $8,359,400, while a total of $18,674,500 of this class of paper was discounted by the Federal Reserve Banks since September of last year. Seven Federal Reserve Banks discounted during the month trade acceptances (twoname paper) to the amount of $275,700, compared with $298,300 in May and an average of about $305,500 for the first five months of the present year. This total does not include about $2,559,000 of trade acceptances based upon foreign-trade transactions and $30,000 of domestic trade acceptances purchased in the open market. San Francisco reports over 70 per cent of the trade acceptances in the foreign trade, and Atlanta the entire amount of domestic acceptances bought. For the first half of 1916 the discounts of two-name paper amounted to $1,803,200, while the total since The total number of bills discounted during the month was 9,238, compared with 8,300 in May and 10,734 in June, 1915. The average amount of the paper discounted was about $1,260, compared with $1,350 for May, about $1,540 for the first five months of the present year, and about $1,250 for June, 1915. The averages for the month vary between $860 for St. Louis and Kansas City and $3,650 for Boston, where, however, the total discounts for the month were only $466,800. For the three southern banks the average for the month was about $1,140. Over one-quarter of the number and more than one-half the amount of the paper discounted was in amounts of over $1,000 to $5,000. Small notes (in sizes up to $250) constituted nearly 29 per cent of the total number, though but 3.3 per cent of the total amount of bills discounted during the month. Bills in sizes of over $10,000, 76 in number, amounted to 11.7 per cent of the total discounts for the month, Boston reporting 44.7 per cent of its total discounts in bills of this class. Of the total paper discounted during the month, 10.4 per cent was paper maturing within 10 days at the time of discount, 17.6 per cent paper maturing after 10 but within 30 days; 20.4 per cent paper maturing after 30 but within 60 days, and 26.5 per cent paper maturing after 60 but within 90 days. Agricultural and livestock paper maturing after 90 days (6-month paper) discounted amounted to about $2,900,000, constituting over 25 per cent of all bills discounted during the month. The Dallas bank reports nearly 40 per cent of the total amount of this class of paper, which was over one-half of the bank's total discounts. Minneapolis reports $353,600 of this class of paper, or about 74 per cent of its June discounts; Chicago, $432,300, or 28 per cent; and Kansas City, $316,200, or over 38 per cent of the bank's total discounts for the month. While the total amount of paper discounted during the first six months of the present year is about 10.2 millions less than for the corresponding period in 1915, the combined amounts of 10- and 30-day paper discounted during the present year were 1.7 millions, and those of 6-month agricultural and live-stock paper 1.6 |