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This monthly report on conditions is not to be released to the public until cn and after the morning of Tuesday, March 25, 1919, so PLEASE HOLD IT CONFIDENTIAL UN TIL THE RELEASE DATE. William McC. Martin, Chairman of the Board and Federal Reserve Agent, Federal Reserve Bank of St. Louis. REPORT ON CONDITIONS IN FEDERAL RESERVE DISTRICT NO. 8 Reports received from the various industries throughout this district in dicate that business is rapidly resuming a normal basis in many lines. However, in some lines price uncertainties are still having a deterrent effect on business ac tivity, and buying is proceeding on a "hand to mouth" basis. Nevertheless, business men as a rule are optimistic regarding the future and are looking forward to increased prosperity. Manufacturers of boots and shoes report that their business is practically normal, one large concern stating that the demand is fully up to its ability to supply. 7T large dry goods company states that its factories are working full time and that its sales for the past four months are even with last year. are said to have declined about 25%. Both cotton and woolen goods A large wholesale grocery concern states that its business is now about normal and that there is a good demand for its products. Reports indicate that certain branches of the iron and steel industry are still below normal, but that increased activity is anticipated. The demand for automobiles,trucks,garages, etc., is said tc be helping this line materially. port a good demand for all kinds of farm machinery. Manufacturers of farm implements re Considerable improvement is noted in the electrical line, one large concern stating that it expects a record business for the next three months. The drug line is active and there is a good demand for fixtures, soda fountains, etc. Department stores and retail merchants generally report an active business and indications point tc a good spring trade. this is stimulating business in many lines. Easter shopping has already begun, and Collections, as a rule, are reported to 2 There seems to be a better feeling in this district with respect to cotton, It is assured that less cotton will be raised this year than for many previous years and as a result of this certainty the manufacturers are showing more willingness to absorb the present supply. The price of cotton has advanced slightly within the last two weeks and sales are somewhat greater. There has been a good demand for money in this district during the past month. This is reflected in the accommodations extended member banks by the Federal Reserve Bank. On February 14, 1913, the Federal Reserve Bank of St. Louis held member banks* paper amounting to $50,303,735.54, and on March 15,1919, it held $59,880,837.42, showing an increase in member banks' paper of $9,577,101.88. The bank rate to custom ers still ranges from 5^% to 6% in the large centers and somewhat higher in the outlydistricts. Commercial paper brokers report a fair demand for commercial paper from seme of the country districts, though very few of the city banks are in the market. The commercial paper rate ranges from 5^% to 5&%. The attention of bankers and others is now being centered on the flotation of the Victory Loan, the campaign for which opens on April 21, 1919, and closes May 10, 1919. Efforts are being made to insure its success in this district. The winter wheat in this district continues to develop satisfactorily, many reports stating that it is the best ever seen at this time of the year. Recent pre cipitation throughout the district has helped the winter wheat materially. present time the outlook for a good fruit crop is very promising. At the Live stock is gen erally doing well in this district and is coming through the winter in good shape, forage is reported to be scarce in some sections, and corn ia being shipped in to fin ish cattle and hogs on feed. The report or the St. Louis National Stock Yards for February, 1919, shows increases in the receipts of hogs and sheep, but decreases in the receipts of cattle, horses and mules, in comparison with the same month last year. It also shows increases in the shipments of cattle and hogs, but a decrease in the shipment of sheep, horses and mules in comparison with the corresponding month last year. The comparative figure* showing the number of head received and shipped, are as follows! RECEIPTS DURING FEBRUARY Cattle 1919 1913* 76,324 84,766 Hogs______ 1919 1918 339,620 Sheep______ 1919 1918 338,051 20,444 19,699 Horses and Mules 1919 1918 20,316 33,071 SHIPMENTS DURING FEBRUARY Cattle 1919 1918 ?^,852 12,073 Hogs 1919 128,370 Sheep____ 1918 1918 1919 75,366 1,075 1,292 Horses and Mules 1919 1918 21,131 30,196 Postal receipts during February in St. Louis, Louisville, and Memphis all show increases in comparison with the same month la3t year. decrease is shown. In Little Rock a slight The comparative figures are as follows: February 1919 St. Louis........................ §593,917.36 1918 $525,715.26 Louisville....................... 145,726.46 140,179.18 Memphis.......................... 114,419.85 86,171.62 60,369.17 64,031.37 Little Rock..................... Reports from St. Louis, Louisville and Memphis for the month of February indicate some improvement in building operations in comparison with the same month last year. However, due to the high cost of materials and labor, the building in- dustry is still considerably below normal. are as follows: The comparative figures for these cities 4 * February 1919 ___ _______ ___________ 1918________ Permits Cost Permits Cost St. Louis, ................. 414 $310,621.00 304 $361,304.00 Louisville 118 104,850.00 68 83,821.00 112 138,240.00 62 95,505.00 .................. Memphis ................. . The labor situation in this district is improving. The surplus supply of workers is gradually being absorbed by industries, and there are practically no disturbances at the present time, though there are some demands which are being arbitrated.
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