Full text of Review (Federal Reserve Bank of St. Louis) : April 1, 1943

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BUSINESS CONDITIONS
Monthly Review of Agriculture, Industry, Trade and Finance
Released for Publication in Afternoon Papers of April 1, 1943

FEDERAL

RESERVE

BANK

OF

ST.

LOUIS

SECOND WAR LOAN

C O U R T E S Y A C M E PH O TO

T H E SECOND WAR LO AN D R IV E AND T H E B A N K S
By W. L. H e m i n g w a y ,
President, American Bankers Association

D uring the Second W ar Loan Drive this month,
the banks of this country are again faced with the
responsibility and the challenge of seeing that the
trem endous goal of $13
billion is attained. This
is the particular kind of
service which we, as
bankers, can best render
our governm ent in this
global war in which our
country is fighting for
its very life. I realize
th at we have undertaken
many new duties and
obligations as a result of
the war. The difficulties
of carrying on our busi­
ness have multiplied at an even faster rate, prin­
cipally because of our loss of manpower, and we
have not shared in the vastly increased national
income generated by war expenditures. In addition,
m any of our banks in agricultural areas are having
their loan volume severely cut by the aggressive
competition of Federal lending agencies sponsored
by the D epartm ent of Agriculture.
U nder these conditions, it is not unnatural that
many of us should experience an inclination to sit
back and let someone else w orry about raising the
money. This we m ust not and cannot do. R egard­
less of the mistakes th at have been made and those
that will be made in the future, we cannot forget
th at this is our country — th at it has not been in so
great a crisis since the Civil W ar — and that Am eri­
can boys are giving their lives all over the world
for us. Regardless of the burdens we may be carry­
ing, we as bankers cannot decline the leadership in
the battle on the financial front. W hat can we do
to win this battle? W e can make it our job to see
that the funds necessary for victory are made avail­
able to the governm ent, and, furtherm ore, that they
are raised in a way th at will be most conducive to
economic stability and to the soundness of the
banking system.
W e m ust make every effort to distribute more of
the bonds among more of the people. This point
has been made repeatedly, but I feel th at it cannot
be emphasized too strongly. I conceive it to be the
very cornerstone of a successful war financing pro­
gram. The banks will take the residual offerings
of bonds that are necessary, but, for that reason if
for no other, the banks should take the lead in see­
Page 2



ing that this residue is kept to as small an am ount
as possible.
However, there are other reasons. In the first
place, the purchase of these securities by as wide a
segment of our people as possible relieves the in­
flationary pressure exerted by expanded incomes
against the decreasing supply of available goods.
Combined with taxes, the purchase of bonds by the
people is the most effective way we have of com bat­
ing inflation. A nother reason for distributing the
bonds as widely as possible is that this 'war, with its
trem endous loss of lives and wealth, is being fought
not for any one group or class w ithin the country,
but for all the people, and all the people should take
part in financing it according to their ability. The
widest possible distribution of the governm ent debt
will constitute one of the strongest forces for the
preservation of its integrity after the war is over.
The securities that are being offered for bank
subscriptions in this drive are so attractive that selfinterest alone, aside from patriotic motives, should
prom pt every bank to subscribe generously. W ith
expenses and taxes rising steadily, we all need addi­
tional income, and these securities provide a safe
investm ent at a fair return under prevailing condi­
tions. It will be surprising if the banks do not
heavily over-subscribe the am ounts of the issues
available for purchase by them.
The m achinery provided by w ar loan deposit ac­
counts assists the banks to subscribe freely to new
issues and to m aintain their positions w ithout
serious inconvenience. It is good business for
every bank that has not already done so to qualify
for a w^ar loan account. By doing so, banks will
be surprised at the ease with which they will be
able to handle their own subscriptions for Govern­
m ent securities and those made through them.
In order to provide the banks with a general
study of the subject of war financing before the
April drive, the Economic Policy Commission of
the American Bankers Association recently ad­
vanced the release date and sent to all members
of the Association its report entitled T H E 100
B IL L IO N B U D G E T A N D T H E BANKS.
I
strongly recommend the reading of this booklet,
not only to bankers but to others who expect to
take part in the drive. I will be very pleased to
send a copy to anyone upon request.
The time is near — as stew ards of our country’s
funds let us give a good account of our stew ardship
in the Second W ar Loan Drive this month.

GENERAL SU M M AR Y

I

N D U S T R IA L production was m aintained at
high levels in the E ighth D istrict throughout
F ebruary and early M arch as industry contin­
ued to meet the challenge of m aterial, labor and
transportation shortages. Additional progress made
in the past m onth is reflected in a 4 point rise in
the adjusted index of industrial activity prepared
by the Board of Governors of the Federal Reserve
System. The index for February stood at 203, up 2
per cent in the m onth and 22 per cent since Novem­
ber, 1941. The durable goods index rose 7 points
in F ebruary as a result of further gains in war out­
put and was 89 points above the pre-w ar level. P ro ­
duction of non-durables was down 1 point in the
m onth and was only 5 points higher than in No­
vember, 1941.
Government w ar expenditures reached a new high
rate of over $253 million per day in February,
according to the W ar Production Board. D isburse­
m ents for the short m onth totaled $6 billion, 3 per
cent less than in January, but more than double the
February, 1942 outlay. D uring the first eight months
of the current fiscal year costs of the war program
have am ounted to $45 billion. W hile total expendi­
tures have leveled off in recent m onths, current
high daily rates indicate th at a new record will be
established in March.
O utput of steel in this district was m aintained
throughout F ebruary at a capacity rate but was
fractionally below th at of the preceding month.
Lum ber production likewise continued at the high
level of recent months. Production of shoes in Feb­
ruary was som ew hat below th at of both a m onth
and a year earlier. O utput of coal at E ighth Dis­
trict mines in February was 1 per cent above Ja n ­

uary and 12 per cent above February, 1942. Feb­
ruary consum ption of industrial electricity in the
district was 3 per cent below th at of January but
35 per cent above the corresponding m onth last
year. The decline from January was due entirely
to the shorter m onth and on a daily average basis
industrial consum ption of electric power during
February rose 5 per cent.
P rim ary distribution of m erchandise continued
in heavy volume during February. Carloadings
of all railroads operating in this district were 5
per cent higher for the four-week period ending
February 27 than in the preceding four weeks and
were 2 per cent more than in the correspondingperiod last year. Loads interchanged by 25 rail­
roads at St. Louis during the month were 2 per
cent under January volume but exceeded th at of
last F ebruary by 21 per cent. For the first nine
days of M arch interchanges were 7 per cent be­
low the comparable period of the preceding month
but were 11 per cent above a year earlier. Total
load interchanges at Louisville in February declined
7 per cent in the m onth, and were 1 per cent under
last February.
Dollar value of building perm its issued in prin­
cipal cities in the E ighth D istrict in February was
38 per cent above th at of January as a result of new
war housing projects, but 47 per cent below the
total of February, 1942. Dollar value of construc­
tion contracts awarded in February declined 62 per
cent in the m onth and was 73 per cent below last
February. N on-residential construction accounted
for 71 per cent of the dollar value of February con­
tract awards. The decline in residential construc­
tion largely reflects m aterial shortages.

D E T A IL E D SU R V E Y O F D IS T R IC T
M A N U F A C T U R IN G

Iron and Steel—Production in the iron and steel
industry continued at peak levels during February
and early M arch in the E ighth D istrict. Steel ingot
production averaged 100 per cent of rated capacity
during the m onth, as compared w ith 101 per cent in
January and 90 per cent last February. L atest re­
ports indicate a fractional decline in the rate of
ingot production during early March.
T he collection and preparation of scrap in the St.
Louis district has been retarded considerably in the
past m onth by extrem e cold w eather in addition to
the continuing labor shortage. As a result m any
m elters have been forced to go into reserve stock
piles. Adverse w eather conditions during early




M arch virtually stopped m ovem ent of scrap in this
area. Steel production was not interrupted, how­
ever, as mills drew upon their scrap inventories.
Despite the tem porary stoppages the scrap situa­
tion in this district is improved over last spring.
The United States average daily rate of plate out­
put in F ebruary was the highest on record although
the short m onth prevented a record in total ton­
nage. This heavy production reflected the needs
for ship building, railroads, gasoline plants, and
synthetic rubber factories. A t the current rate of
production, a new record for plate may be estab­
lished in March.
Shoes— Shoe production in the E ighth D istrict in
F ebruary was 2 per cent above th at of January but
Page 3

6 per cent under February, 1942 output, according
to prelim inary figures. January output of 6,806,872
pairs in this district was 2 per cent greater than in
December but 8 per cent under January, 1942. Shoe
production in the entire country during January
totaled 36,991,171 pairs, a decline of 4 per cent in
the m onth and 7 per cent in the year. T he season­
ally adjusted index for the E ighth D istrict rose 8
points in January to 133.4 per cent of the 1924-26
average. A ctual production as m easured by the
unadjusted index stood at 129.1 for January, a gain
of 3 points in the month.
Whiskey—A total of 57 K entucky distilleries
were reported in operation on F ebruary 28 as com­
pared w ith 55 at the end of January and 54 a year
earlier. All facilities are devoted to the production
of industrial alcohol for the w ar program . Reports
indicate th a t distilleries and distributors are volun­
tarily lim iting sales of whiskey in an endeavor to
apportion present stocks over about six years. A l­
though it is anticipated th at m anufacture of whiskey
will be resum ed before six years, producers desire
to have a sufficient stock of aged whiskey on hand
imm ediately after the w ar to perm it a blending of
old and green whiskies until the new output can be
properly aged. M any retailers are likewise lim iting
sales to small quantities per custom er, and refusing
to sell in case lots.
R E T A IL T R A D E

Dollar volume of departm ent store sales in the
E ighth D istrict during F ebruary registered a sub­
stantial contra-seasonal gain as a result of largescale consum er buying attributable to fears of ex­
tension of Government restrictions to the sale of
clothing following the shoe rationing order. The
seasonally adjusted index of departm ent store sales
in February reached the highest point on record,
14 points above the previous peak of 152. As com­
pared to a year ago, departm ent store sales in this
district were up 39 per cent. Probably a fair portion
of this increase is attributable to price rises result­
ing m ainly from a shift to higher-priced lines
which are not adequately reflected by any price
index.
The largest gains in sales over both a m onth and
a year earlier in E ighth D istrict cities, occurred in
Little Rock, Evansville, and F o rt Sm ith in the order
named. Prelim inary reports for the first tw o weeks
in M arch indicate th at the January-F ebruary buying
wave at departm ent stores is slackening although
sales in L ittle Rock, and Evansville continue well
above a year earlier.
Dollar volume of retail furniture store sales in
February rose 18 per cent from January levels and
Page 4




wras 8 per cent above above a year earlier despite
curtailed supplies of household appliances and cer­
tain types of furniture.
Stocks of departm ent stores in February declined
4 per cent from January and were 11 per cent below
a year ago. Prim ary factors accounting for the de­
cline in stocks were shortages of m any consumer
items, particularly in the durable field and the pros­
pects of retail inventory control. D epartm ent store
stocks are now more than 25 per cent below the
peak levels of May, 1942. Inventories of retail fur­
niture dealers fell 4 per cent from January to Feb­
ruary and were 36 per cent below a year earlier.
Difficulties in obtaining replacem ent stocks oper­
ated to reduce inventories in this field also.
A G R IC U L T U R E

General Conditions — A bnorm ally low tem pera­
tures during much of February and the early part
of M arch retarded the progress of w inter crops in
the E ighth D istrict and delayed the preparation of
land for spring planting in m ost areas. H eavy frost
in early M arch severely damaged the fruit and truck
crops in the central and southern portions of the
district, while the third successive m onth of drought
conditions in the southw estern section constitutes
an additional hazard for district crops.
Prices received by farm ers in the U nited States
have rem ained above parity since last June and in
the early part of 1943 rose to the highest levels in
23 years. The parity ratio at 111 on February 15
was 4 points below a m onth earlier but was 12
points higher than on the corresponding date last
year.
Livestock and livestock products, fruits,
vegetables, and cottonseed continue above p arity ;
cotton prices hold approxim ately at parity leveTs
and grains are som ew hat lower. Prices paid by
farm ers including interest and taxes have shown a
steady rise during the past year, but at a retarded
rate since the institution of the price stabilization
program last spring. The gain was 1 per cent in
the m onth ending February 15 and am ounted to
9 per cent for the year. U pw ard pressure on farm
product prices may be expected to continue as a
result of high consum er incomes and large m ilitary
and lend-lease requirem ents.
A gricultural em ploym ent in the U nited States
totaled 8,730,000 on M arch 1 as compared w ith
8,369,000 a m onth earlier and 8,738,000 on M arch
1 of last year, according to the D epartm ent of
A griculture. No m aterial change in the supply
of farm workers in this district has been reported
during the past month.
Cotton—M oderate to dull trading characterized the
M emphis spot cotton m arket during the four-week

period ending M arch 12. Dem and centered chiefly
in w hite grades of strict low m iddling and up, par­
ticularly in the longer staples. Small purchases of
lower qualities against definite orders were noted
but the greater part of such qualities is being or
already has been placed in the loan. Needs were
generally filled from m erchants’ and shippers’ in­
ventories and some loan redem ptions as producers’
stocks were reported nearly exhausted. Offerings
from the country declined during the m onth and
prim arily consisted of grades strict low middling
and lower. Prices of m iddling 15/16 cotton at
Memphis moved upw ard during the m onth ending
M arch 15 and ranged from a low of 20.65c per
pound to a high of 21.15c per pound, closing the
m onth at 20.95c per pound.
Stressing the value of cottonseed as a source of
protein feed and much needed oil for w ar purposes,
the Secretary of A griculture announced on March
6 th at farm ers will be perm itted to exceed their
1943 cotton acreage allotm ents by 10 per cent
w ithout penalty, forfeiture of benefit paym ents, or
loss of loan privileges, providing goals of other
special w ar crops are fully planted. P resent m ar­
keting quotas for cotton will be retained, however,
and no governm ent paym ents will be made on that
acreage planted in excess of allotm ents. T he 1943
acreage originally alloted for cotton in the United
States was 22,500,000 acres. On the average an
acre of cotton will produce 205 pounds of meal and
70 pounds of oil.
Fruits and Vegetables—Acreage planted to Irish
potatoes in the four early states of the district is
19,800 as compared w ith 17,800 in 1942 and the tenyear (1932-41) average of 18,050 acres. Potato
stocks on hand in E ighth D istrict states at the be­
ginning of the year were 2 per cent larger than a
year earlier and 34 per cent above the ten-year
average. Prelim inary acreage planted to straw ­
berries in E ighth D istrict states is 19 per cent less
than last year and 17 per cent below the ten-year
average. The decrease is attributable to concen­
tration on more essential crops, anticipated difficul­
ties in securing an adequate harvest force, and sugar
rationing. Intended 1943 acreage for green peas for
processing in the district states of Indiana and Illi­
nois is 37,900 acres, an increase of 4 per cent over
last year and 51 per cent above the ten-year average.
Livestock — Total receipts of all livestock at
N ational Stock Yards in February were 20 per
cent lower than in January but 6 per cent above
February, 1942. H eavy sheep receipts accounted
for m ost of the gain from a year ago, as cattle and
hogs were in only slightly greater volume. In ­




spected slaughter of livestock at St. Louis in Feb­
ruary was 12 per cent greater than in February,
1942. Slaughter supplies are expected to be rela­
tively large during the first half of the year because
of the record num bers of livestock on feed this sea­
son, but since only m oderate premiums for top
grades of beef are perm itted under current price
ceilings, the num ber of cattle fed to a high degree of
finish will probably be smaller.
Demand for feedgrains continued very strong in
early March due to the very cold w eather and the
shortage of other type of feeds, especially proteins
and concentrates. A t St. Louis demand for all types
continued heavy, w ith offerings limited to small
quantities of millfeeds. In cooperation w ith the
U. S. D epartm ent of A griculture, the Feed Industry
Council has approved a voluntary program under
which feed processors will limit the protein content
of all mixed feeds to certain percentages in order to
conserve ingredients needed to meet the livestock,
poultry and dairy production goals for 1943. Feed
ratios have registered small declines in the past
several m onths but on F ebruary 15 remained above
the levels of a year earlier.
Shorn wool production in E ighth D istrict states
in 1942 totaled 32,079,000 pounds, an increase of
2,259,000 pounds over the preceding year, and pro­
vided an income of $13,875,000 as compared with
$11,956,000 in 1941.
Tobacco— Gross sales of burley tobacco during
the 1942-43 m arketing season totaled 351,878,385
pounds at an average price of $42.03 per cwt. as
compared with 354,564,873 pounds sold at $29.33 per
cwt. last season, according to final governm ent re­
ports. The 1942 burley crop established records for
general average price, price by grades and total
cash value. The crop was two and one-half million
pounds smaller than th at of the preceding year but
had a 40 per cent greater cash value. Increases in
average prices by grades ranged from $7.00 to
$14.00 per cwt. higher than last season for the
better qualities and from $1.50 to $8.00 more for
lower grades. The general average price records
set during the season were partly attributed to the
m arketing of a much larger proportion of better
quality tobacco. The Tobacco Growers’ Coopera­
tive Association receipts of burley were relatively
light as auction prices rem ained well above the
Association prices throughout the season. R eports
indicate that dealers were not inclined to buy large
quantities of burley at the high price levels pre­
vailing during the m arketing season and as a re­
sult very little of this type tobacco is available for
resale.
Page 5

Eastern district dark-fired tobacco sales for the
season through M arch 11 totaled 26,639,738 pounds
at an average of $17.65 per cwt. Sales were light
during the first two weeks of March but prices
for most grades were higher, due to increased
offerings of better qualities. Only 12 per cent of
total m arketings of this tobacco had been delivered
to the G rowers’ Association through March 10.
A total of 10,071,810 pounds of W estern District
fire-cured tobacco was sold at an average price of
$14.59 per cwt. during the season through March
12. Sales volume of this type of tobacco was
small in the week ending March 13 but increases
in average prices were registered for the sixth
consecutive week, reflecting larger offerings of
finer qualities.
W inter W heat— Extrem ely low tem peratures and
a general absence of continuous snow covering
throughout the E ighth D istrict during the latter
half of February and the early part of March were
unfavorable to the development of w inter wheat.
W hile the extent of damage from heaving in the
southern part of the district has not been deter­
mined, w inter grains in the lower Ohio Valley show
considerable injury and condition ranges from poor
to very good.
EM PLOYM ENT

Total civil non-agricultural employment in the
U nited States in February was 42.1 million, 200,000
less than in January but 1.1 million more than in
February, 1942. National unemployment as esti­
m ated by the Bureau of the Census in February was
1.4 million, the same as in January but 2.6 million
less than a year earlier. The total civilian labor
force in February was estim ated at 52.3 million,
100,000 less than a m onth earlier. The decline was
the result of a decrease of 400,000 men but an in­
crease of 300,000 women.
W ith one exception there has been no appreciable
change in the labor situation in the larger Eighth
D istrict cities in the past month. Evansville, In ­
diana, however, has been classed by the W ar Man­
power Commission as a labor-shortage area. There
are now 36 cities so designated. Certain smaller
cities in the district where there are new and rapid­
ly grow ing w ar activities are anticipating severe
labor shortage. In some cases these war activities
will call for a labor supply greatly in excess of
present em ploym ent which is already depleted
through m igration to m ajor war plant areas and
m ilitary service.
Since the last issue of this review The Peoples
Bank of Greensburg, K entucky, has become a mem­
ber of the Federal Reserve System.
Page 6




PETROLEUM
P ro d u ctio n
( I n th o u san d s
of barrels)

1942

1941

26,628
106,590
6,609
4,472
. .144,298

S tocks
D ec. 31,
D ec. 31
1942
1941

1940

26,327
134,138
6,634
4,762
171,861

25,583
146,788
4,843
5,193
182,407

1,988
12,748
3,007
1,919
19,662

9,170
3,193
1,846
14,209

R E C E IP T S A N D S H IP M E N T S A T N A T IO N A L ST O C K Y A R D S
R eceipts
S hipm ents
Feb.,
Jan.,
Feb.,
Feb.,
Jan.,,
Feb.,
1943
1943
1942
1942
1943
1943
77,36346,145 17,173
C attle and C alv es ......... 81,497 98,963
40,795
H o g s ...................................217,738 274,476
211,91296,932 83,386
88,324
H orses and M u le s .........
5,308
3,478
2,688 3,457
5,245
2,553
30,111 4,351
S h e e p .................................. 38,356 51,990
7,548
3,910.
T o ta ls ......... .................... 342,899 428,907 322,074

141,912 150,885 107,022

W H O L E S A L E P R IC E S IN T H E U N IT E D S T A T E S
B u reau of L a b o r
S ta tistic s
F eb.,
Jan .,
F eb.,
F e b .,’43 com p, w ith
(1 9 2 6 = 1 0 0 )
1943
1943
1942
J a n .,’43
F e b .,’42
101.9p
117.0
105.2
96.Op

A ll C om m odities. . 102.5p
F a rm P ro d u c ts . 119.0
F o o d s .................. 105.8
O t h e r ...................
96.2p
p— P relim inary.
B u re au of L a b o r
S tatistics
(1 9 3 5 -3 9 = 1 0 0 )

Feb. 15,
1943

CO ST O F L IV I N G
Ja n . 15,
Sept. 15,
1943'
1939

120..9
119.9

U n ite d S tates
St. L o u i s ..........
B u re au of L a b o r
S tatistics
(1 9 3 5 -3 9 = 1 0 0 )
U . S. (51 cities) . .
St. L o u is ...........
L ittle R ock
L o u is v ille .........
M em p h is............

+ 0.6%
+ 1.7
0.6
+ 0.2
+

96.7
10.1.3
94.6
94.9

F eb. 16,
1943
. 133.6
134.4
131.5
129.0.
, 129.6

120.6
119.3

+ 6.0%

+ 17.5
+
11.8
+ 1.4

F eb. 15,’43 com p, w ith
J a n . 15/43 S ept. 15/39

100.6
100.4

+
+

C O ST O F F O O D
Jan . 12,
F eb. 17,
1943
1942
133.0
116.8
133.1
119.9
13-0.6
119.1
128.9
118.2
137.2
116.9

0.2%
0.5

+
+

20.2%
19.4

F eb . 16/43 comp, w ith
Jan . 12/43 F eb. 17/42
+ 0.5%
+ 14.4%
+ 1.0
b 12.1
+ 0.7
-10.4
+ 0.1
- 9.1
— 5.5
+ 10.9

I N D E X E S O F E M P L O Y M E N T IN M A N U F A C T U R IN G
I N D U S T R I E S B Y M E T R O P O L IT A N A R E A S
B u re au of L a b o r
N ov.,
D ec.,
D e c./4 2 comp. w ith
S ta tistic s
D ec.,
1942
1942
N o v .,’42
(1937= 10,0)
1941
D e c./4 1
E v a n s v ille ............

(C o st in
th o u san d s)
E v a n sv ille . . . .
L ittle R o c k . . .
Louisville
F eb. T o t a l s . . .
Jan .
“

188.3
120.8
156.0
, , 147.2

158.6
115.7
151.3
143.1

79.0
111.1
108.3
120.9

+ 18.7%
+ 4.4
+ 3.1
+ 2.9

+ 138.4%
8.7
+
+ 44.0
21.8
+

B U IL D IN G P E R M IT S
New C onstruction
R ep airs, etc.
N um ber
Cost
N u m b er
C ost
1943 1942
1943
1942
1943 1942 1943 1942
12
15
78
120
32
257
196

15
53
166
804
174
1,212
492

$

28
2
456
196
17
699
344

$

49
129
341
1,184
589
2,292
903

245
68
31
218
122
~684
485

52 $178
217
23
31
24
143
65
132
751
"575 1,041
360
215

$ 23
83
55
157
171
489
513

V A L U E C O N S T R U C T IO N C O N T R A C T S L E T
( I n th o u san d s
F e b .,’43 comp, w ith
of d ollars)
F e b .,’43
J a n .,’43
F e b .,’42
J a n .,’43
F e b .,’42
T o tal 8 th D ist.
$ 13,433
$ 34,998* $ 49,545
S o u rc e : F . W . D odge C orporation. * Revised.

(K .W .H .
in th o u s.)

62%

73%

C O N S U M P T IO N O F E L E C T R IC IT Y
N o. of F eb.,
Jan .,
Feb.,
F e b ru a ry , 1943
C ustom - 1943
1943
1942
com pared w ith
ers* K .W .H . K .W .H .
K .W .H . J a n ., 1943 Feb., 1942

E vansville . . , . . 40
8,336
9,065
4,058
3,029
L ittle R ock . . ,. 35
2,977
2,491
, . 82
15,676
15,377
15,325
5,751
. 31
5,847
4,513
P ine B luff . . ., . 20
5,378
4,247
1,393
. 134
82,328
86,729
61,397r
,342
120,498 124,242
89,277r
*— Selected in d u stria l custom ers, r— Revised.

— 8%
+ 2
+ 2
— 2
+27
— 5
— 3

+ 22
+ 2

+ 27
+ 286
+ 34
+ 35

L O A D S IN T E R C H A N G E D F O R 25 R A IL R O A D S
A T ST. L O U IS
F ir s t nine days
F e b .,’43 J a n .,’43 F e b .,’42
M a r.,’43
M ar.,’42
2 m os.,’43 2 m os.,’42
136,318
139,357* 112,794'
4(0,964 '
36,786
S o u rc e : T erm in al R ailroad A ssociation of St. L ouis.

275,675

230,179

W H O L E S A L IN G
L ines of Com m odities
N e t Sales

Stocks

D a ta furn ish ed by B u reau of Census.
U . S'. D ep t, of Com m erce.

F eb ru a ry , 1943
com pared w ith
Jan./43 F e b ./4 2

A utom o tiv e S u p p lies..............................
D ru g s and C h em icals...........................
D ry G o o d s ................................................
E lectrical S u p p lie s..................................
F u r n itu r e .....................................................
G ro c e rie s ....................................................
H a r d w a r e .....................................................
Plu m b in g S u p p lies..................................

—
—
+
+
—
+
+
—
+
+
+

11%
2
3
3
21
14
23
17
19
3
3

+
+
+
—
—
+
—
—
+
+
+

D E P A R T M E N T ST O R E S
2 m os.’43
to sam e
period ’42

7%
16
22
44
14
24
27
25
31
19
8

— 13
— 20
— 32
— 43
— 25

S tocks
on H a n d

Stock
Turnover

Feb. 2 8/43
comp, w ith
F eb . 2 8 /4 2

Jan . 1, to
Feb. 28,
1943 1942

N e t Sales
F e b ru a ry , 1943
com pared w ith
J a n .,’43
F e b .,’42

F eb. 28, 1943
comp, w ith
Feb. 28, !

F t. Sm ith, A r k .. . + 24% + 7 5 %
+48%
4%
.57
L ittle Rock, A rk. + 59
+98
+ 62
4
.53
Q uincy, 111............ + 2 1
+26
12
.62
+ 1
E vansville, I n d . . . + 2 7
+ 82
+ 56
L ouisville, K y . . . . + 15
+21
+35
— 16
.85
.63
St. L ouis, M o . . . . + 15
+ 27
— 11
.67
.64
+ 7
Springfield, M o .. . — 19
+32
+ 19
— 15
.57
.38
M em phis, T en n . . . — 18
+55
+29
— 15
.79
.54
*A11 o th er c itie s . .
11 + 31
+ 22
— 7
.88
.56
8th F . R. D is tric t.
+39
19
— 11
.72
.61
+ 18
*E1 D orado, F ay ettev ille, Pine Bluff, A rk . A lton, E a s t St. L ouis
H a rrisb u rg , M t. V ernon, 111.; V incennes, I n d . ; D anville, H opkinsville,
M ayfield, P a d u c ah , K y . ; C hillicothe, M o .; Jackson, T en n .
T rad in g d a y s: Feb., 1943— 2 4 ; Jan ., 1943— 2 5 ; F eb ., 1942— 24.
O u tstan d in g o rd ers of re p o rtin g stores a t th e end of F e b ru a ry , 1943
w ere 37 per cent g re a te r th a n on th e corresponding d ate a y ear ago.
P e rc e n ta g e of accounts and notes receivable o u tsta n d in g F e b ru a ry 1
1943, collected d u rin g F e b ru a ry , by cities :

+

In s ta lm e n t E xcl. In sta l.
A ccounts
A ccounts
F o rt S m ith ............ct
L ittle R ock . . 26
L o u i s v ille .... 31
M em phis . . . . 31

63%
47
63
53

In s ta lm e n t E xcl. In s ta l.
A ccounts
A ccounts
Q u in c y ...........
St. Louis . . . .
O th er cities . .
8th F . R. D ist.

28%
31 %
21
30

74%
71%
57
63

I N D E X E S O F D E P A R T M E N T ST O R E S A L E S A N D ST O C K S
8th Federal Reserve D istrict (1923-1925 average = 100)
F eb.,
Jan ., D ec.,
Feb.,
1943
1943
1942
1942
Sales (daily a v erag e), U n a d ju s te d ..................... 143
Sales (d aily a v erag e ), Seasonally a d ju s t e d ... 166
Stocks, U n a d ju s te d ....................................................
91
Stocks, Seasonally a d ju s te d ....................................
96
r— R evised.
S P E C IA L T Y ST O R E S
N e t Sales
F e b ru a ry , 1943
2 m os.’43
com pared w ith
to sam e
J a n .,’43
F e b ., ’42
period ’42

117r
146r
95
110

212
129
94
101

Stocks
on H a n d
Feb. 28/4 3
comp, w ith
F eb. 2 8 /4 2

101
117
103
108

0
,
Stock
T u rn o v er
Jan . 1, to
Feb. 28,
1943 1942

M en’s F u rn ish in g s + 1 8 % + 3 6 %
+16%
+
3%
.48
.48
B oots and S h o e s .. — 6
+28
+30
— 27
1.39
.94
P e rc e n ta g e of acco u n ts and notes receivable o u tsta n d in g F e b ru a ry 1,
1943, collected d u rin g F e b ru a ry :
M en’s F u r n is h in g s ......................... 61% B oots and S h o e s ...............................52%
C H A N G E S IN P R IN C IP A L A S S E T S A N D L I A B IL I T I E S
F E D E R A L R E S E R V E B A N K O F ST. L O U IS
C hange from
M ar. 17,
17.
F
e 17, M ar. 18,
Feb.
( I n thou san d s of dollars)
1943
1943
1942
In d u stria l advances u n d er Sec. 13b........... $
7
-0O th e r advances and re d is c o u n ts ..................
75 —
45
U . S. s ec u rities.................................................... 363,833 + 110,876
T o tal earn in g a s s e t s ..................................... 363,915 + 110,831

+
2
+
75
+ 2 5 7 ,5 9 7
+ 257,674

T o tal r e s e r v e s ...................................................... 648,463
T o tal d e p o s its ....................................................... 484,000
F . R. N otes in c irc u la tio n .............................. 537,232

— 10.8,934
— 12,215
+ 13,815

+ 28,262
+ 101,115
+ 199,851

In d u s tria l com m itm ents u n d er Sec. 13b. .

—

+

1,685

17

229

F E D E R A L R E S E R V E O P E R A T IO N S D U R IN G F E B R U A R Y , 1943
(In c l. L ouisville, M em phis, L ittle R ock branches) Pieces
A m ounts
C hecks (cash item s) h a n d le d ................................ 5,809,043 $2,030,158,417
C ollections (non-cash item s) h a n d le d ................
78,579
47,599,763
T ransfers of fu n d s .......................................................
4,488
50,0,520,710
C urrency received and c o u n te d ........................... 12,207,756
48,197,884
Coin received and c o u n te d ....................................... 15,530,258
1,209,776
R ediscounts, advances and c o m m itm e n ts .........
2
550,000
N ew issues, redem ptions, and exchanges of
securities as fiscal a g en t of U . S. G ovt., etc.
663,017
344,147,703
Bills and securities in c u sto d y — coupons clipped 9,156
...............................




RA TE S O F T H IS B A N K F O R A C C O M M O D A T IO N S U N D E R
T H E F E D E R A L R E S E R V E A CT
Advances to mem ber banks, secured by direct obliga­
tions of the U n ited States o r by such G overnm ent
guaranteed obligations as are eligible for collateral,
which have one year or less to ru n to call date or
to m atu rity if no call date, u n d e r p arag rap h s 8 and
y2 % per annum
13 of section 1 3 ............................,..........................................
A dvances to m em ber ,banks, secured by direct o bliga­
tions of the U n ited States or by such G overnm ent
g uaranteed obligations as are eligible for collateral,
which have m ore th an one year to ru n to call d ate
or to m aturity if no call date, u n d e r p a ra g ra p h s 8
> per annum
and 13 of section 13.....................................................................1
Advances to nonm em ber banks, secured by direct ob­
ligations of the U n ited States, u n d er p a ra g ra p h 13
of section 13............................................................................... . . 1
Rediscounts and o th er advances to m em ber banks u n ­
per annum
der sections 13 and 13a..............................................................1
per annum
Advances to m em ber banks u n d e r section 1 0 ( b ) ................ 1y2
A dvances to individuals, p a rtn e rsh ip s, an d corporations
other th a n banks, secured by direct obligations of
the U nited S tates, u n d e r p a ra g ra p h 13 of section 1 3 . . . 2 % per annum
In d u stria l advances to m em ber banks, nonm em ber
banks, and o th e r financing institu tio n s, u n d e r sec­
r i % to
tion 13b :
(a) O n portion for w hich such in stitu tio n is obligated t 1 ^2 % per annum
(b) O n rem aining portion — N o charge to financ­
ing in stitu tio n .1 F ederal R eserve B ank will
retain in terest collected from borrow er.
A dvances to established in d u stria l or com m ercial <2V2 % to
businesses under section 1 3 b .............................................. ( 5 % per annum
C om m itm ents to established in d u stria l or com m ercial
businesses u n d e r section 13b.....................................................10% to 25% of
the loan rate charged borrow er w ith a m inim um ra te of H % per annum .
Com m itm ents to m em ber banks, nonm em ber banks, and
other financing institu tio n s, u n d e r section 13b................ 10% to 25% of
the loan rate charged borrow er w ith m inim um ra te of
% p er annum
p ro v id e d : th a t no com m itm ent will be given on loan on w hich b o r­
row er is charged over 5% per annum .
P R IN C IP A L R E S O U R C E A N D L IA B I L I T Y IT E M S
O F R E P O R T IN G M E M B E R B A N K S
C hange from
M ar. 17,
Feb. 17, -M- ar. 18,
( I n thousands of dollars)
1943
1943
1942
T otal loans and in v e stm en ts......................... $1,377,305
+ 31,118 + 4 15,776
Commercial, in dustrial, a g ric u ltu ra l loans
219,044 ■
— 11,066 — 60,229
O pen m arket p a p e r...........................................
8,470 —
650 — 15,399
L oans to brokers and dealers in securities
3,422 +
254 —
566
O ther loans to purchase and carry securities
8,991 —
23 — 1,381
R eal estate lo a n s................................................
65,964 +
882 +
6,223'
L oans to b a n k s ..................................................
298 +
86
3 +
O th er lo an s..........................................................
58,857 — 5,043 — 15,965
T o tal l o a n s .......................................................
365,046 — 15,643 — 87,231
T reasu ry b ills .......................................................
161,264 + 31,093 + 127,549
C ertificates of in d e b te d n ess............................
177,182 +
958 + 1 7 7 ,1 8 2
T reasu ry n o te s .....................................................
110,382 — 1,737 + 67,883
U . S. b o n d s.........................................................
400,620
11,012 + 139,882
41,862 + 5,530 — 16,478
O bligations g u aran teed by U . S. G o v t.. .
O th er sec u rities..................................................
120,949 —
6,989
95 +
T otal in v estm en ts............................................ 1,012,259 + 46,761 + 503,007
Balances w ith dom estic b a n k s .....................
129,334 — 3,599 — 93,756
D em and deposits — a d ju ste d * .......................
921,737 + 41,430 + 2 7 6 ,6 6 2
Tim e d e p o sits.......................................................
197,160 + 1,970 + 14,454
U . S. G overnm ent d e p o sits ............................
55,10,1 — 14,788 +
6,921
In te rb a n k d e p o sits..............................................
561,213
1,254
' 78,240
*O ther th an in te rb a n k and G overnm ent deposits, less cash item s on
hand or in process of collection.
Above figures are for 24 m em ber banks in St. L ouis, L ouisville, M em ­
phis, L ittle R ock and Evansville. T h e ir resources com prise approxim ately
75% of the resources of all m em ber banks in this d istric t.

+

D E B IT S T O I N D I V I D U A L A C C O U N T S
Jan .,
F eb.,
Feb.
F e b .,’43 comp, w ith
1943
1943
1942
J a n .,’43 F e b ./4 2
10,30,1 $ 10,445 $
6,405 ___ 1%
E l D orado,
+ 61%
“
20,261
21,338
F o rt Sm ith,
17,826 — 5
+ 14
“
2,352
2,632
2,005 — 11
+ 17
“
L ittle Rock, . . .
58,780
66,072
55,947 — 11
5
+
“
16,299
18,323
Pine Bluff, . . . .
11,639 — 11
+ 40
—
T exarkana,-A rk.-T ex.
13,288
12
15,070
26,451
50.
E .S t.L .-N a t.S .Y '.,111.
63,808
72,267
56,728 .— 12
+ 12
Q u in c y ,.............. “
11,60,9
11,906
10,210 — 2
+ 14
E v an sv ille,......... , In d .
65,515
69,823
36,725 —
6
+ 78
Louisville,
..K y . 268,198
306,664
227,764 .— 13
+ 18
O w ensboro, . ..
7,111 — 22
9,698
12,509
+ 36
8,186
7,295
8,604 — 11
15
M iss.
9
817,503
688,158 —
8
Mo. 742,195
+
S e d a lia ,.............. “
3,390
2,923 +
5
3,229
+ 16
“
6
Springfield,,
21,450
22,775
18.390
+ 17
252,667
210,089 — 8
.T enn. 233,357
+ 11
—
10
......... 1,547,796 1,711,409 1,386,975
+ 12
8
A lto n ,.................. 111.
9,667
10,509
5
7,601
P a d u c a h ,...........
K y.
7,216
—
18
3,670
4,470
Cape G irardeau, . .M o.
—
“
14
3,961
H a n n ib a l,.........
3,389
“
12,054
23,670
Jefferson City, .
+ 96
, T enn.
6,981
7,650
— 9
( I n thousands
of dollars)

.

.

_
_

..

C O M M E R C IA L F A I L U R E S IN E IG H T H F . R. D IS T R IC T
F e b .,’43 com p w ith
Feb. ,’43
Jan . ,’43
Feb. ,’42
J a m /4 3
F e b ./4 2
+ 11%
— 71%
N u m b e r ..............
10
9
34
+ 278
— 43
L iab ilitie s........... $193,000
$51,000
$336,000
S o u rc e : D un and B ra d stree t.

(Completed March 25, 1943)

Page 7

Second War Loan Drive
April, 1943

National Goal. . $13,000,000,000
T he Second W ar Loan Drive to be held in A pril seeks to sell the huge sum of $13 billion of United
States Government Securities. For this tremendous undertaking the Treasury has brought together the
Victory Fund Committees and the W ar Savings Staffs in one unified organization under the name of
United States Treasury W ar Finance Committees. In each of the twelve Federal Reserve Districts the
W ar Finance Committee is under the chairmanship of the President of the Federal Reserve Bank.
T he sale of securities to non-bank investors in the United States is expected to be $8 billion in April.
In the Eighth District the non-bank goal is $250 million. This sum has been broken down into quotas
for the eight regional areas in the district. On A pril 12 over 16,000 volunteers working in all commun­
ities of the district will begin an intensive campaign to solicit investors to purchase Government secur­
ities. T he securities offered are designed to meet the needs of every possible class and type of investor.
The several issues included in the offering have different maturities and denominations ranging from
$1,000,000 down to $18.75.

List of Securities Included in Second War Loan
1% per cent Treasury Bonds of 1964-69
Tax Savings N otes — Series C
2 per cent Treasury Bonds of 1950^52
U nited States W^ar Savings Bonds — Series E
Vz per cent Certificates of April 1, 1944
U nited States Savings Bonds — Series F and G
U nited States Treasury Bills — W eekly tenders

Eighth District Quotas For Non-Bank Investors
Arkansas — entire state . . . . $20,160,000
25,500,00
Illinois — 44 c o u n tie s.................
Indiana — 24 counties . . . . .
14,200,000
Kentucky — 64 counties . . . .
44,200,000
Mississippi — 39 counties . . . .
7,700,000
Missouri — 94 counties . . . .
21,600,000
Metropolitan St. L o u is ................. 93,540,000
Tennessee — 21 counties . . . .
23,100,000
T o t a l ................. $250,000,000

U . S. Treasury War Finance Committee




W ar Savings Staff — Victory Fund Committee
Eighth Federal Reserve District
Headquarters — Federal Reserve Bank of St. Louis