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MONTHLY REVIEW O f Agricultural, Industrial, Trade and Financial Conditions in the Eighth Federal Reserve District Released for Publication. O n and After the Afternoon of December 31, 1932 JOHN S. W O O D , Chairman and Federal Reserve Agent FEDERAL RESERVE R A D E and industry in the Eighth District during the past thirty days developed further recessionary trends, and during late N ovem ber and the first weeks of Decem ber activities in a number of important classifications reached the lowest point of the year. In all wholesaling and jo b bing lines investigated by this bank, the volume of N ovem ber sales fell below that of the preceding month, and with the exception of furniture, which registered a moderate gain, the volume was meas urably below that reported in November last year. As compared with a year ago decreases were most marked in the heavier industries, including iron and steel, glass, lumber, and the entire category of build ing materials. The movement of seasonal merchan dise was considerably below the usual volume at this time of year. Purchasing of raw materials was on a very limited scale, being affected by slackness in demand for finished goods, and a general desire on the part of manufacturers to hold down stocks against the inventorying period. The continued de cline in com m odity prices was a further influence tending to restrict commitments, particularly for goods to be used in future operations. In all quar ters ordering was confined to materials to fill imme diate and well defined requirements. T In the south both wholesale and retail trade was adversely affected by the decline in prices of cotton and rice, while low market levels of cereals, live stock and other farm products served to greatly re duce purchasing power elsewhere in the agricul tural sections. Christmas shopping got under way later than usual, and reports covering the first half of Decem ber indicate a considerably narrower outlet through this channel than during the past several years. A s has been the case throughout the year, demand for merchandise centers chiefly in necessi ties and the cheaper classes of goods. Distribution of automobiles in Novem ber decreased sharply as compared with the preceding month and a year ago, and the total sales of dealers reporting to this bank were the smallest for any single month in more than C. M. STEWART, , Secretary and As$*t Federal Reserve Agent BANK OF ST. h VION PAPIN, Statistician LOUIS ten years. M ore than the usual seasonal contraction in operations at iron foundries and steel mills took place in late November and early this month. Num erous stove plants closed down and there was fur ther curtailment at plants of farm implement manu facturers and other specialty makers. As compared with the preceding thirty days the only changes in the agricultural situation were of a seasonal character. The U. S. Department of A gri culture's report as of Decem ber 1 in the main con firms forecasts of yields of the chief crops made earl ier in the season. For the most part reports relative to fall planted cereals reflect favorable conditions. Heavy snows over the principal winter wheat areas afforded ample covering and protection for that crop. N o improvement took place in the em ploy ment situation as a whole. Incident to the holiday trade, retail establishments augmented their forces, and there were gains in employment in the tobacco district where the new crop is being marketed. The increased number of workers in these occupations, however, was more than offset by decreased em ploy ment among other groups of wage-earners. A s reflected in sales of department stores in the principal cities of the district, the volume of retail trade in N ovem ber was 1.8 per cent smaller than in October, and 20.8 per cent less than in November, 1931; for the first eleven months this year cumula tive sales were 22.5 per cent smaller than for the comparable period in 1931. Combined sales of all wholesaling and jobbin g interests reporting to this bank in N ovem ber showed a decrease of 15 per cent under October and of 18 per cent under the N ovem ber, 1931, total; for the eleven months this year cumulative sales of these firms were approximately one-fourth less than for the same period last year. The dollar value of permits issued for new construc tion in the five largest cities of the district in N ovem ber was 80 per cent smaller than in October and 58 per cent less than in November, 1931; for the first eleven months the total was 76 per cent smaller than for the comparable period last year. Construe- tion contracts let in the Eighth District in N ovem ber were 26.4 per cent larger than a month earlier, and 53.9 per cent more than in November, 1931; for the first eleven months this year the cumulative total was 49.4 per cent smaller than a year ago. Debits to checking accounts in Novem ber showed a decrease of 11 per cent and 22 per cent, respectively, as com pared with a month and a year earlier, and for the eleven months this year the total was one-fourth less than for the comparable period in 1931. Officials o f railroads operating in this district report a decrease in freight traffic during N ovem ber and early December of somewhat larger than the usual seasonal proportions. The low stage of de mand for industrial fuel is reflected in an unusually small movement of coal and coke. H eavy decreases as contrasted with the same time in recent years was noted in loadings o f grain and grain products. For the country as a whole loadings of revenue freight for the first 48 weeks this year, or to D ecem ber 3, totaled 26,255,457 cars, against 35,012,832 cars for the corresponding period in 1931 and 43,107,709 cars in 1930. The St. Louis Terminal Railway Association, which handles interchanges for 28 connecting lines, interchanged 109,611 loads in November, which compares with 133,066 loads in October, and 132,895 loads in November, 1931. Dur ing the first nine days o f Decem ber the interchange amounted to 42,620 loads, against 35,189 loads dur ing the same period in November, and 40,976 loads during the first nine days of December, 1931. Pas senger traffic o f the reporting lines in N ovember decreased 37 per cent as compared with the same month in 1931. Estimated tonnage of the Federal Barge Line between St. Louis and New Orleans in November was 112,300 tons, as against 109,442 tons actually handled in O ctober and 86,348 tons in November, 1931. T he same general trends which have been noted since early fall were reflected in reports relative to collections during the past thirty days. Considera ble spottiness exists, both in the large cities and rural sections. Universally collections on new ac counts are reported fair to good, but backwardness is still noted on debts o f long standing. Novem ber 1 settlements with wholesalers in the large distri buting centers were well up to expectations, in a number o f instances being ahead o f the same period last year. In the tobacco districts, where markets for the 1932 crop have opened, there has been con siderable liquidation, and slight improvement in collections in the rice areas is noted. A s contrasted with last spring and summer, there has been sub stantial improvement in payments in the bituminous coal sections. Due to a closer credit policy of mer chants generally, the ratio of cash sales to credit sales has increased markedly in recent months. Answers to questionnaires addressed to representa tive interests in the several lines scattered through the district showed the follow ing results: Excellent November, October, November, 1932....... 1.9% 1932....... 1.6 1931....... 0 Good Fair Poor 16.7% 17.9 18.5 57.3% 61.4 67.5 24.1% 19.1 14.0 Commercial failures in the Eighth Federal R e serve District in November, according to Dun's, numbered 74 involving liabilities of $2,732,421 against 82 insolvencies in O ctober with liabilities of $1,648,236 and 117 defaults for a total of $3,357,116 in November, 1931. The average daily circulation of the United States in Novem ber was $5,642,000,000 against $5,643,000,000 in October, and $5,518,000,000 in November, 1931. M AN U FA CTU R IN G AND W H O L E S A L IN G Boots and Shoes — November sales of the re porting firms were approximately 18 per cent smaller than in October, and 22 per cent less than in N ovem ber, 1931. Stocks increased slightly more than 4 per cent between N ovember 1 and December 1 and on the latter date were 37 per cent smaller than a year ago. In both sales comparisons decreases were general through all lines of footwear, but most marked in seasonal merchandise. The mild fall tended to hold down the movement of the heavier lines through retail channels. Since Decem ber 1 there has been considerable improvement in the call for winter footwear, reflected in numerous small orders from retailers throughout the trade territory. Prices were unchanged as compared with the pre ceding thirty days. Clothing — Contrary to the usual seasonal trend, sales of the reporting clothiers in November showed a substantial gain over the preceding month, but the total was approximately 11 per cent smaller than in November, 1931. The increase in the monthto-month comparison was due largely to postponed buying earlier in the fall. M ore seasonable weather during the past several weeks has stimulated the movement of winter apparel through retail channels, and has resulted in a fair volume of reordering of heavyweight goods. Purchasing for spring and early summer distribution is reported in considerably smaller volum e than at this period in recent years. Drugs and Chemicals — Throughout N ovember the demand for seasonal goods was measurably be low the usual volume, and the same was true of or dering of holiday goods. Demand centered chiefly in staples and necessitous medicinal preparations and pharmaceuticals, sales o f cosmetics and other luxury goods continuing at the relatively low levels of earl ier in the year. The outlet for heavy drugs and chemicals through the general manufacturing trade showed further contraction during N ovem ber and early December. N ovem ber sales of the reporting firms were 7 per cent smaller than in October, and 15 per cent less than in Novem ber last year. Stocks on Decem ber 1 were 2 per cent and 15 per cent smaller, respectively than a month and a year earlier. Dry Goods — Follow ing increases during the tw o preceding months, N ovem ber sales of the re porting firms decreased 17 per cent under October, and 19 per cent under the Novem ber, 1931 total. In November, 1931, sales were approximately 2 per cent greater than for the preceding month, and 5 per cent less than in November, 1930. Purchasing of goods based on cotton was held in check by the decline in price of that staple. Advance ordering of all descriptions of goods is in considerably less than the ordinary seasonal volume. T he movement of holiday goods in O ctober and the first half of November, was unusually light, but since that time belated orders have considerably accelerated clear ance of merchandise in this category. Inventories continue to decline, stocks on Decem ber 1 being 6 per cent and 13 per cent smaller, respectively, than thirty days and a year earlier. Electrical Supplies — There was a slight decline in sales o f the reporting firms in Novem ber as com pared with the preceding month, but as compared with a year ago, the N ovem ber total showed a de crease of more than 44 per cent. Inventories con tinue to decline, stocks on Decem ber 1 being 3 per cent smaller than a month earlier, and 39 per cent smaller than a year ago. Ordering of holiday goods, particularly radio materials, was reported in smaller volume than in a number of years. Demand from the automotive and building industries has failed to expand and at the end of N ovem ber reached the lowest point of the season. Flour — Production at the twelve leading mills of the district in N ovem ber totaled 247,208 barrels, against 237,466 barrels in October, and 272,264 bar rels in Novem ber, 1931. There was no change in the dull conditions which have obtained since early last summer. Purchasing by the large baking inter ests continues on a hand-to-mouth basis, and in all quarters efforts are being made to hold down inven tories to the lowest possible levels. Prices declined further, and in the first week of Decem ber reached the lowest point on the present downward m ove ment. T he decline reflected the lower prices of cash wheat. A ccordin g to certain mills, the holiday trade had a moderately stimulating effect but demand still centers mainly grades. Export demand continues Production was at from 45 to 50 per on choice flours, in the cheaper at a minimum. cent of capacity. Furniture — For the second consecutive month, sales of reporting firms in this classification in Novem ber showed a gain over the corresponding period a year earlier. T h e increase was ascribed to heavier sales of holiday goods and seasonal mer chandise and a general disposition on the part of retailers to replenish depleted stocks. Moderate improvement in demand for radio cabinets was noted and in the country and small towns, ordering of household furniture and furnishings was on a somewhat larger scale than earlier in the year. November sales of the reporting interests were 7.6 per cent larger than a year ago, and 31.9 per cent smaller than the October total this year. A further decrease in inventories was reported, stocks on December 1 being 4 per cent smaller than on Novem ber 1, and 19 per cent smaller than on Decem ber 1, 1931. Groceries — A ccording to the reporting firms N ovem ber sales fell 5 per cent below the preceding month, and 11 per cent below the November total last year. Purchasing is confined almost exclusively to absolute requirements, and as has been the case throughout the year, demand centers mainly in staples and the cheaper grades of merchandise. Sales of holiday goods, particularly in the rural areas were disappointing, and in considerably smaller volume than a year ago. The trend of prices was lower, with specific reductions recorded on flour, coffee, packing-house products and a number of less important commodities. Hardware — Follow ing the unvaried precedent of the past decade, sales of the reporting firms de creased in N ovem ber under the preceding month. The total dollar value of November transactions was 17 per cent smaller than in October, and 12 per cent less than in November, 1931. There was a fur ther decline in inventories, stocks on December 1 being 5 per cent and 15 per cent smaller, respective ly, than a month and a year earlier. Sales of holiday and sporting goods and seasonal merchandise gen erally in Novem ber were below the average for that month in recent years. Since December 1, however, the sharp drop in temperatures has stimulated de mand for cold weather goods, and retailers have placed a considerable volume of rush orders for such commodities. Iron and Steel Products — Affected the usual seasonal influences and general lack of demand, ac tivities in the iron and steel industry in this district sustained a further decline during the past thirty days. W hile shipments of finished products were light, unfilled orders of a m ajority of interests re porting to this bank were measurably smaller at the end of Novem ber than a month earlier. Since December 1 the rate of operations has receded still further, reaching the lowest point of the year and of the present depression. A ll classes of steel users were disposed to await developments before making commitments, and new buying was confined chiefly to small tonnages to supply immediate and urgent requirements. Increased business from the autom o tive industry, which had been looked for at this time, failed to materialize in the volum e expected. W ith the exception of companies w orking on new models, specifications were disappointing and new orders almost entirely absent. Purchasing by the railroads and oil industry remained at the low levels which have characterized recent months. Producers of steel sheets, plates, strip and other rolled com m o dities reported a progressively decreasing demand through N ovem ber and the first half of December. These interests announced their prices for the first quarter of 1932, which are substantially the same as current quotations, but report poor response, either in the form of inquiry or actual orders. Cer tain specialty makers, including manufacturers of farm implements and industrial machinery, which had planned to commence small scale production in early December, have further postponed putting their programs into effect. Follow ing increased ac tivity in O ctober and the first half of November, stove foundries and manufacturers of heating appa ratus have reduced their operations to about the rate o f mid-September. Reflecting further contraction in the outlet through the building industry, fabrica tors of iron and steel structural material have re duced their w orking forces, a number of plants having closed down. The movement of iron and steel com m odities from warehouses showed more than the seasonal decline. N o betterment appeared in demand from the general manufacturing trade, and call for fencing, roofing and other materials used largely in the rural areas was the smallest experienced in recent years, N ovem ber shipments of pig iron to melters in the district represented the smallest m onth’s total since last January, and since Decem ber 1 a further contraction in the movement is noted. Ordering o f pig iron for first quarter of 1933 requirements has failed to develop in volume. Demand for scrap iron and steel is extremely quiet, with prices lower on all the principal grades. A c cording to figures com piled by “ Steel” , production of pig iron for the country as a whole in November, totaled 625,663 tons, which compares with 644,648 tons in October, and 1,101,820 tons in November, 1931. Steel ingot production in the United States in N ovember totaled 1,014,794 tons,against 1,068,550 tons in October, and 1,591,644 tons in November, 1931. A U TO M O B ILE S Distribution of automobiles in the Eighth D is trict, according to dealers reporting to this bank, showed a sharp decrease in November, both as com pared with the preceding month and a year ago. The decrease in the month-to-month comparison was seasonal in character, such a decrease having o c curred each year since com piling of these records was commenced, except in 1928, when November sales were 17 per cent larger than the October total. The extent of the decrease this year was greater than the average, and incidentally the total was the smallest for any single month in more than ten years. Novem ber sales of new passenger cars by the reporting dealers were 29 per cent smaller than in October, and 44 per cent below the November, 1931, total. Reflecting extremely close and conservative buying by distributors, inventories decreased fur ther, stocks on Decem ber 1 being 6 per cent smaller than on November 1, and about one-third smaller than on December 1, 1931. Demand for used cars was relatively more active than for new equipment, Novem ber sales being only 9 per cent under the pre ceding month and 14 per cent smaller than in Novem ber last year. Stocks of salable secondhand cars continue small, the total on December 1 being about 3 per cent and 22 per cent smaller, respective ly, than thirty days and a year earlier. A ccording to dealers reporting on that detail, deferred payment sales in N ovem ber constituted 49 per cent of their total sales, which compares with 51 per cent in October, and 53 per cent in November, 1931. R E T A IL T R A D E The condition of retail trade is reflected in the follow ing comparative statements showing activities in the leading cities of the d istrict: Department Stores Net sales comparison Stocks on hand Stock turnover Tan. 1, to Nov. 1932 11 months ended Nov. 30, 1932 comp, to Nov. 30, 1932 to comp, to Nov. 30, Nov. 1931 same period 1931 Nov. 30, 1931 1932 1931 Evansville ...... ..— 35.2% — 32.8% 1.53 1.70 — 34.7% Little Rock.... ..— 19.7 1.98 2.37 — 23.1 — 8.4 Louisville ...... ..— 22.8 2.25 2.46 — 17.4 — 20.0 ,,— 22.4 — 21.1 — 10.0 2.62 2.80 ..— 25.3 — 23.6 — 10.6 1.99 2.28 ..— 19.9 — 22.8 — 19.6 3.16 3.38 Springfield .... ..— 32.9 — 19.2 — 33.3 1.16 1.54 8th District.... ..— 20.8 — 17.2 2.79 3.03 — 22.5 Retail Stores Net sales comparison Stocks on hand Stock turnover Jan. 1 I, to Nov. 1932 11 months ended Nov. 30, 1932 comp, to Nov. 30, comp, to Nov. 30, 1932 to 1932 1931 Nov. 1931 same period 1931 Nov. 30, 1931 Men’ s Furnishings — 12.6% Boots and Shoes.. ..— 26.0 — 27.0% — 25.2% 2.56 2.90 — 25.6 — 19.5 2.35 2.58 BU ILD IN G In point of dollar value, permits issued for new construction in the five largest cities of the district in Novem ber were 80 per cent smaller than in O cto ber, and smaller by approximately 58 per cent than in Novem ber a year ago. A ccordin g to statistics compiled by the F. W . D odge Corporation, con tracts let in the Eighth Federal Reserve District in N ovem ber amounted to $9,228,107 which compares with $7,303,430 in O ctober and $5,996,183 in N ovem ber, 1931. Production o f portland cement for the country as a whole in N ovem ber totaled 6,462,000 barrels, against 7,939,000 barrels in O ctober and 8,161,000 barrels in November, 1931. Building fig ures for N ovem ber fo llo w : Evansville .. Little Rock Louisville .. Memphis ... St. Louis.... New Construction *Cost Permits 1932 1931 1932 1931 $ 21 $ 33 76 134 4 23 9 17 52 52 41 33 91 45 176 65 310 90 204 91 Nov. totals.. 281 564 $ 213 $ 509 1,429 Oct. “ .. 456 727 1,063 Sept. “ .. 528 817 545 1,692 *In thousands of dollars (000 omitted). ________Repairs, etc. *Cost Permits 1932 1932 1931 1931 19 46 $ 3 $ 72 41 12 8 48 12 33 29 49 80 54 31 74 114 211 58 145 273 490 472 385 574 642 $ 133 247 200 $348 279 249 CONSUMPTION OF ELECTR ICITY Public utilities in the five largest cities of the district report consumption of electric current by selected industrial customers in November as being about 7.3 per cent smaller than in October and 4.5 per cent less than in November, 1931. Detailed figures follow : Oct. No. of Nov. 1932 Nov. comp, to Custom 1932 1932 ers * K .W .H . * K .W .H . Oct. 1932 1,341 1,759 — 23.8% Evansville .... 40 Little Rock... 35 1,167 1,272** — 8.3 — 8.8 5,296 5,806 Louisville .... 85 Memphis ..... 31 — 2.9 1,334 1,374 St. Louis......191 16,390** — 5.4 15,511 Totals .......... 382 24,649 *In thousands (000 omitted). **Re vised figures. 26,601 — 7.3 Nov. Nov. 1932 comp, to 1931 * K .W .H . Nov. 1931 — 10.5% 1,49& 1,261** — 7.5 5,306 — 0.2 1,472 — 9.4 16,266** — 4.6 25,803 — 4.5 AG R IC U LTU R E Taken as a whole, conditions through the Eighth Federal Reserve District during the past thirty days were favorable for agriculture. Clear weather with reasonable temperatures during most of Novem ber were auspicious for com pleting the harvest of late crops and the housing and m oving of these products. Ordinary winter farm routine in practically all sections of the district is up to schedule and the condition of livestock has main tained the high average which has existed during the year. Late fall and winter plow ing was facili tated by needed moisture, and in both the northern and southern states is generally further advanced than the average at this season. Fall planted cereal crops for the most part made good headway, and winter wheat in the principal areas is entering the cold weather in a strong position. Cold weather in early September was accompanied by heavy snow which afforded ample protection for this crop. The end of the season for harvesting cotton was favora ble, and this crop was secured with a minimum of injury to quality and quantity. T obacco markets opened in late Novem ber and early this month with fairly liberal offerings, and early reports indicate high average quality. Prices were irregular, but with averages showing a slight advance as con trasted with initial sales a year ago. In most instances, the Decem ber 1 report of the U. S. Department of Agriculture confirmed earlier forecasts for crop yields in this district. The decline in prices, which has been in effect for many months, continued during N ovem ber; new low levels for the season, and in recent years being recorded in a num ber of the m ost important products. Due to the re cession in values and lack of demand, there is a gen eral disposition on the part of farmers to hold their stocks for more favorable marketing conditions. No change worthy of note took place in the status of farm labor as compared with the preceding month. In all sections supplies considerably exceed demand, and wage scales are the lowest since the beginning of the present century. W hile farm incomes are small, supplies of foods and feeds are generally abundant. Winter Wheat — Reports generally relative to the grow ing crop reflect favorable conditions. O wing to unfavorable weather during the seeding period, planting operations were extended over a longer time than usual, and in some sections full acreage intentions of farmers were not carried out. Due to this cause and the low price of wheat, indications point to slightly smaller acreage than a year ago. Rains in N ovem ber supplied needed moisture, and the plant made good progress; for the most part the crop is entering the dormant season in strong position. The sharp drop in temperatures in early December was accompanied by general snows, which afforded ample protection to the crop. W hile m ois ture deficiency has not been entirely made up in some localities, soil conditions are mainly good. Corn— Final estimates of the yield of corn in the Eighth District tend to confirm forecasts earlier in the season. Husking returns from practically all the surplus counties indicate a crop of unusually high quality. A considerable amount of new crop corn arriving at primary markets is grading No. 2 and 3 or higher. Due to the record low prices, farm ers are disposed to hold their stocks for more favor able markets. Since Decem ber 1 the price has dropped to the lowest levels since records have been kept by the grain exchanges. L ive Stock — Little change worthy of note has taken place in the condition of livestock during the past thirty days as contrasted with the similar period immediately preceding. In all sections the early fall was favorably for herds, and with ample fodder and feed, all kinds of farm animals are enter ing the cold weather in good condition. Due to the low range of prices and liberal stocks of dressed meats in coolers, the m ovement of cattle and hogs to market in Novem ber was smaller than a month and a year earlier. Milk production continued below average, and production of eggs was below that at the corresponding period last year. Receipts and shipments at St. Louis as reported by the National Stock Yards were as fo llo w s: Receipts Nov. 1932 Oct. 1932 Shipments Nov. 1931 Cattle and Calves........ 85,145 105,563 88,177 Hogs .............................197,391 207,362 245,061 Horses and Mules...... 2,473 4,246 2,479 Sheep ............................ 44,736 55,173 41,649 Nov. 1932 Oct. 1932 Nov. 1931 53,269 62,258 58,048 166,530 175,532 200,827 3,304 3,126 2,342 7,676 21,119 8,501 Cotton — Prospects for the cotton crop in states including the Eighth District showed a further in crease between November 1 and December 1. A c cording to the U. S. Department of Agriculture's report, based on December 1 conditions, the yield in these states is placed at 3,145,000 bales, an in crease of 240,000 bales over the November 1 fore cast, and comparing with 4,551,000 bales harvested in 1931 and 2,866,000 bales in 1930. Taking into con sideration the limited use of fertilizer and heavy boll weevil infestation, the crop is turning out surpris ingly well. The season was unusually favorable for the competition of picking and ginning, and relative ly little low grade cotton has appeared on the mar ket. Since the last week of November weather has been unfavorable and has delayed ginning and low ered quality of the crop still to be harvested. Very little cotton remains in the fields, however, hardly enough to substantially alter general average quali ty of the crop. Prices continued weak, a new low for the present season being recorded in early De cember. In the St. Louis market the middling grade ranged from 5.25c to 5.85c per pound between N ovember 15 and Decem ber 15, closing at 5.45c per pound on the latter date, which compared with 5.85c on November 15 and 5.70c on December 16, 1931. The movement of the crop continued in large vol ume, receipts at Arkansas compresses from August 1 to December 12 totaled 982,116 bales, against 1,079,820 bales for the corresponding period a year ago. Stocks on hand as of December 12 totaled 741,763 bales, which compares with 691,563 bales a year ago, and 758,031 bales on November 11 this year. T obacco — Dry, cold weather has seriously in terfered with the preparation of tobacco for market. However, deliveries of burley to the Lexington market for opening sales were large. The average price of initial sales was $12.66 per hundred pounds, as compared with an average of $11.75 for the opening sales last year. On December 13, about 23,000,000 pounds of burley had been sold at the several mar kets at an average of $13, or about $2 higher than during the same period last year. Sales in the dark tobacco districts in the Green River and stemming section were at about the same prices as last year, with an average price of $4.12. In the one-sucker districts sales were at an average price of $5.63, a shade higher than a year ago. The dark-fired markets at Clarksville and Springfield, Tenn., and Hopkinsville, Ky., opened with small offerings, due to unfavorable weather conditions. Prices were measurably higher than at the opening last year. The advance was most notice able in lugs, which are from $1 to $2 per hundred pounds higher than in 1931, and common to medium leaf, which averaged $2 to $3 higher. Prices realized at opening sales in the western district have been less favorable. Due to inauspicious weather for pre paring stock for market in all districts, indications point to smaller offerings of tobacco prior to D e cember 31 than in a number of years. C O M M O D IT Y P R IC E S Range of prices in the St. Louis market between November 15, 1932 and December 15, 1932 with closing quotations on the latter date and on Decem ber 15, 1931, follow : Close Wheat High Low Dec. 15, 1932 Dec. 15, 1931 $ .46H $ .54^4 Dec........................ per bu..$ .46*4$ .4 2 l/& May ................. “ .SO X .467/s .4 7 H .56*4 July ..................... “ .50& .48 .4S/& .5 5 ^ No. 2 red winter “ .4 9 ^ .47 $ .47 @ .4 7 ^ $ .5 7/2 @ .5 8 1 / No. 2 hard “ “ .49 .4 6 ^ .4 6 ^ @ .4 7 ^ .5 5 j4 @ .5 6 ^ Com Dec......................... “ .25 .22 .22*A .38 May ..................... “ .3154 -26H .2 6 ^ .41& No. 2 mixed ..... “ .2 6 ^ .2 2 ^ .22% @ .2 3 ^ .3 7 ^ @ .38^4 No. 2 white ...... “ .28^4 .24^4 -24$4@ .26 .3 8 ^ @ -39/2 Oats No. 2 white ...... “ .18 .17 .17 @ .1754 .26 @ .2 6 ^ Flour 2.50 2.50 @ 3.15 3.60 @ 4.20 Soft patent......... per bbl. 3.15 Spring patent...... “ 3.90 3.65 3.65 @ 3.90 4.20 @ 4.50 Middling cotton....per lb. .0585 .0525 .0545 .0570 Hogs on hoof.......per cwt. 3.75 2.00 2.15 @ 2.35 3.50 @ 4.25 F IN A N C IA L There were no important changes in the finan cial and banking situation in the Eighth District during the past thirty days from the trends noted earlier in the fall. Demand for credit from com m er cial and industrial sources continued extremely light, and requirements for financing agricultural operations, which have been relatively small throughout the year, underwent further seasonal contraction. Liquidation generally was in consider able volume, both at country banks and with finan cial institutions in the large urban centers. Country banks further reduced their loans with city corres pondents, and total volum e of such loans is smaller than at any time during the past tw o years. Despite the fact that cotton planters are still disposed to hold their stocks for more favorable markets, there was a substantial reduction of loans based on that staple. Since the opening of the tobacco markets for the 1932 crop around Decem ber 1, there has been a fair volume of liquidation of tobacco loans. Sales of commercial paper declined further, and the vol ume of financing through acceptances was light. Reflecting the restricted demand for credit, loans and discounts of reporting member banks in the principal cities continued the steady downward movement which began last May. Between N ovem ber 16 and Decem ber 14 this item decreased about 3 per cent and on the latest date recorded a new low for the year and a decrease for more than 29 per cent below the level at the corresponding time a year ago. Total deposits increased slightly during the four-week period, the gain being due to the larger volume o f demand deposits held, time depos its show ing a decrease o f 1.5 per cent. Total invest ments on Decem ber 14 at $230,973,000 represented an increase o f about 1 per cent over November 16, and o f 3.2 per cent over the comparable date last year. Borrow ings o f all member banks from the St. Louis reserve bank fluctuated in minor degree only between Novem ber 16 and Decem ber 16, and throughout that period averaged approximately two-thirds less than during the same interval in 1931. Total volum e of reserve credit outstanding on Decem ber 16 was practically the same as a month earlier. Reflecting the usual seasonal demand for currency, the circulation o f this bank showed a substantial increase, and at the middle of December reached the highest point since 1921. Reversing the usual seasonal upward trend, m oney rates were either unchanged or lower as com pared with recent weeks. A t St. Louis banks pre vailing rates were as fo llo w s : Customers’ commer cial paper, 4 to 5% per cen t; collateral loans, 4 to 6 per cent; interbank loans, 4 to 5% per cent; loans secured by warehouse receipts, 4 to per cent and cattle loans, 5 to 6 per cent. and on the latter date were 10.1 per cent smaller than on December 16, 1931. Composite statement fo llo w s: *Dec. 14, 1932 Number of banks reporting............ 24 Loans and discounts (incl. rediscounts) Secured by U . S. Govt, obligations and other stocks and bonds....$109,660 All other loans and discounts.... 166,291 *Nov. 16, 1932 24 *Dec. 16, 1931 25 $106,116 178,015 $155,202 235,578 Total loans and discounts.................$275,951 Investments U. S. Government securities...... 112,543 Other securities............................... 118,430 $284,131 $390,780 113,698 115,125 93,837 129,920 Total investments............................... $230,973 Reserve balance with F. R. Bank 37,524 Cash in vault........................................ 7,130 Deposits Net demand deposits..................... 295,823 Time deposits................................... 199,848 5,275 Government deposits..................... $228,823 39,452 6,245 $223,757 42,290 7,218 285,248 202,932 7,083 341,528 208,125 7,496 $557,149 $495,263 Total deposits.......................................$500,946 Bills payable and rediscounts with 10,823 1,095 Federal Reserve Bank................... 865 *In thousands (000 omitted). These 24 banks are located in St. Louis, Louisville, Memphis, Little Rock, and Evansville, and their total resources comprise approximately 52.6 per cent of all member banks in this district. Debits to Individual Accounts — The follow ing table gives the total debits charged by banks to checking accounts, savings acounts, certificates of deposit accounts and trust accounts of individuals, firms, corporations and U. S. Government in lead ing cities of the district. Charges to accounts of banks are not included. *Nov. 1932 East St. Louis & Natl. Stock Yards, 111..$ 16,342 El Dorado, Ark.... . 2,968 Evansville, Ind.... . 13,785 Fort Smith, Ark... . 6,668 Greenville, Miss.... 2,641 Helena, Ark.......... . 1,744 Little Rock, Ark... 16,530 Louisville, K y....... . 95,081 Memphis, Tenn..... . 83,560 Owensboro, Ky.... 2,375 Pine Bluff, Ark.... . 5,193 Quincy, 111............ . 4,880 St. Louis, M o....... . 353,915 1,154 Sedalia, M o........... Springfield, M o.... . 8,306 **Texarkana, Ark.-Tex........ . 4,963 *Oct. 1932 *Nov. 1931 $ 18,570 3,704 13,119 7,713 2,925 1,839 18,643 103,470 102,861 2,473 5,428 5,506 394,700 1,493 9,511 $ 23,207 3,942 15,053 8,898 3,298 2,912 22,756 108,342 111,305 3,950 7,208 7,042 457,345 1,958 11,475 5,362 6,675 — 12.0% — 19.9 + 5.1 — 13.5 — 9.7 — 5.2 — 11.3 — 8.1 — 18.8 — 4.0 — 4.3 — 11.4 — 10.3 — 22.7 — 12.7 — 29.6% — 24.7 — 8.4 — 25.1 — 19.9 — 40.1 — 27.4 — 12.2 — 24.9 — 39.9 — 28.0 — 30.7 — 22.6 — 41.1 — 27.6 — 7.4 — 25.6 Totals ............... .$620,105 — 22.0% $697,317 $795,366 — 11.1% *In thousands (000 omitted). * *Includes one bank in Texarkana, Texas not in Eighth District. Federal Reserve Operations — During N ovem ber, the Federal Reserve Bank of St. Louis dis counted for 200 member banks against 208 in O cto ber, and 253 in N ovem ber, 1931. The discount rate remained unchanged at 3 y2 per cent. Changes in the principal assets and liabilities of this institution appear in the follow ing ta b le : *Dec. 16, 1932 ..$ 8,258 Bills bought .. 66,156 Condition of Banks — Loans and discounts of the reporting member banks on Decem ber 14, 1932 showed a decrease o f 2.9 per cent as contrasted with N ovem ber 16, 1932. Deposits increased 1.1 per cent between N ovem ber 16, 1932 and Decem ber 14, 1932 Nov. 1932 comp, to Oct. 1932 Nov. 1931 Federal Inter. Cr. Bk. Debentures...... Participation in Inv. Foreign Banks.. Ratio of reserve to deposits and F. R. Note Liabilities *In thousands (000 omitted). (Complied Dec. 22, 1932) 974 *Nov. 16, *Dec. 16, 1931 1932 $26,879 $ 8,849 10,451 27,351 *66jl 56 880 1,103 ”T 008 ..$75,388 .. 94,531 .,103,555 .. 58,690 $76,013 97,547 101,882 62,515 $66,664 95,963 86,589 67,880 .. 58.3% 59.3% 62.1% BUSINESS CONDITIONS IN T H E U N ITED STATES Industrial activity declined in November by somewhat more than the usual seasonal amount. Changes in factory employment and payrolls, reported for the middle of the month, were largely seasonal in character. Prices in wholesale commodity markets were somewhat lower, on the average, in November than in Octo ber, and declined further during the first three weeks of Decem ber. PRODUCTION AND EM PLO YM ENT — Production and employment volume of industrial production as measured by the Board’s seasonally adjusted index, declined from 66 per cent of November, while the dollar volume of department store sales, which ordinarily expands at this season, showed a decline. W H O L E S A L E PRICES — During early November the gen eral level of wholesale commodity prices advanced somewhat, re flecting chiefly increases in prices of domestic agricultural prod ucts; in the latter part of the month, however, prices of livestock, cotton, and grains declined considerably and, during the first three weeks of December, further declines in livestock prices were Index of United States Bureau of Labor Statistics (1 9 2 6 = 1 0 0 ). Latest figure November, preliminary 63.9. the 1923-1925 average in October to 65 per cent in November, compared with a low level of 58 per cent in July. Output at woolen mills, silk mills, and shoe factories declined in November from the relatively high levels of the autumn, while cotton mills continued active. Lumber production declined by considerably more than the usual seasonal amount. Steel production decreased during November and the first three weeks of December, while automobile output increased considerably, in connection with the introduction of new models. The number employed at factories declined somewhat from October to November, reflecting in large part developments of a seasonal character. W orking forces in the woolen, silk, shoe, and canning industries were reduced, while at car-building shops, and at factories producing automobiles and agricultural implements, there were increases in employment. Indexes based on three month moving averages of F. W . Dodge data for 37 Eastern States, adjusted for seasonal variation. (1923-1925 average= 1 0 0 ). Latest figures November, preliminary total 28, residential 11. Construction contracts awarded up to December 15, as re ported by the F. W . Dodge Corporation, indicate for the last three months of the year a decline from the third quarter of somewhat more than the usual seasonal amount, following a non-seasonal increase from the second to the third quarter. Estimates of the Department of Agriculture, based on December 1 reports, indi cate a cotton crop of 12,727,000 bales, about 800,000 bales larger than the estimate a month earlier, but 4,400,000 bales smaller than last year's unusually large crop. Wheat, tobacco, flaxseei and other leading cash crops are also considerably smaller than a year ago, while feed crops are substantially larger. Acreage of winter wheat planted this fall was slightly smaller than a year ago and condition of the crop on December 1, was unusually poor, according to the Department o f Agriculture. Distribution of commodities by rail decreased seasonally from October to than at the middle of November and the great average of whole sale prices was at a level slightly below that prevailing before the advance which occurred last summer. BANK CREDIT — During the four weeks ended December 14 there was an addition of $85,000,000 to the country’s stock of monetary gold. The funds derived from this source were utilized in meeting an increase in the demand for currency, which was smaller than usual at this season, in further reducing, by $23,000,000, the indebtedness of member banks to the reserve banks, and in increasing by $25,000,000 the volume of member banks reserve balances. On December 15, there was a further increase of $95,500,000 in the stock of monetary gold in connection with the current payment by Great Britain on the war debt. This amount of gold was earmarked in London for account of the Federal Reserve Bank of New York, and an equivalent credit was given by that bank to the United States Treasury. This transaction together with other fiscal operations on December 15, resulted in a temporary addition of $100,000,000 to the reserves of member banks, which were subsequently reduced by Christmas currency demands and an increase in Treasury deposits with the reserve banks. Loans and investments of reporting member banks de clined by more than $100,000,000 between November 16, and D e cember 14, reflecting reductions in the banks’ holdings of United States Government securities, and in loans other than security loans. Loans on securities increased, both at New York City and at other reporting member banks. M oney rates in the open mar ket declined further, rates on 90 days bankers’ acceptances de clining from y2 of 1 per cent to H of 1 per cent, and rates on prime commercial paper from a range of — 1^4 Per cent to a range of — V/2 per cent.
@FedFRASER