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FEDERAL RESERVE BANK OF S X LOUIS MONTHLY REVIEW OF BU SIN ESS CONDITIONS IN FEDERAL RESERVE DISTRICT NO. 8 Released for Publication On and After the Afternoon of September 30, 1924 W IL L IA M McC. M AR TIN CHAIRMAN OF THE BOARD AND FEDERAL RESERVE AGENT H E trend of general business in this district during the past thirty days was in the direction of further improvement. Save in a relatively small number of lines, however, the betterment has been slow, and in many quarters less than expected from the promise held forth by developments of the similar period immediately preceding. W hile funda mentally the situation gained further strength, and there has been no appreciable diminution in the recent optimism, ordering of merchandise is proceed ing cautiously and along conservative lines. The im proved position in the agricultural sections, while being reflected in extensive liquidation of indebted ness and much more hopeful sentiment, has resulted thus far in only moderate increase in actual purchas ing. Farmers are supplying their urgent needs, replac ing equipment and spending some money in addition for things not strictly in the necessity category, but with the lesson of the past three years still fresh, there is a disposition in the rural communities to conserve cash resources. A s a whole, industrial activities showed no marked change during the period under review, though the tendency was upward, and in some classifications fair gains were recorded. Production in the boot and shoe industry showed a substantial increase, and there were fair gains elsewhere, notably in flour milling, iron and steel, packing, automobiles, lumber and cement. T he policy of manufacturers in making up only such goods as they have orders for continues to a large extent, and inventories of raw materials and finished products are in the main smaller than usual at this time of year. W ith the exception of certain agricultural products, which fluctuated rather broadly, price changes in raw materials were limited, indicating further progress toward stabilization. Reports from leading interests in the wholesale and jobbing trade, in a m ajority of instances, indicate improvement in both character and actual volum e of their business. Orders booked are of larger size and better balanced than has been the case for many months. There are relatively few complaints of cancel lations and returned goods, and retailers are apparently more disposed to fill their needs. W hile buying cen ters chiefly in goods for immediate shipment, there has been an appreciable gain in orders for future delivery, notably in furniture, hardware, clothing, groceries, and dry goods. In the latter line, however, purchasing for deferred requirements in the imme diate past has been checked by the decline in raw cot ton, which has created uncertainty relative to the future movem ent of the market for cotton fabrics. The attendance of buyers in the chief distributing cen ters was the heaviest in recent years, large numbers of country merchants having been attracted by special market weeks, fashion shows, trade excursions, etc. T The continued heavy distribution of commodities is reflected in reports of railroads operating in this district, and traffic of carriers for the country as a whole. During the last week of August car loadings of all roads exceeded the 1,000,000 mark for the first time this year. Other favorable factors in the general business situation in the district were the sustained activity in the building industry, more seasonable weather, increased buying power of the public, slight improvement in employment conditions and the strength of the banking and financial position. Fair gains in employment were shown in the coal, lead and zinc mining sections, and additions to their forces were made by the iron and steel, furniture, lumber and milling industries. There is an excellent call for farm help, especially of the experienced kind, and road building, city paving, river work, and the railroads and public utilities are drawing heavily on common labor. The demand for clerical and office help was somewhat better, though a surplus still exists in sev eral of the larger cities. Favorable weather, good roads and satisfactory market prices contributed to a heavy movement of farm products during the period under review. R e ceipts of wheat, oats and rye were well in excess of the corresponding period last year, but due to the late ness of the crop, movement of corn fell behind a year ago, and live stock shipments were also smaller. Cereal prices, while still considerably higher than dur ing the same time in 1923, declined below the closing figures of the preceding thirty days. Between August 15 and September 15, the September wheat option at St. Louis ranged from $1.18^ to $1.32, and No. 2 red winter wheat from $1.30 to $1.44. The closing price of September wheat on September 15 was $1.28, which compares with $1.01^ on the corresponding date in 1923, while cash wheat was 25c to 34c higher than last year’s quotation. September corn ranged from $1.09 to $1.21, closing at $1.16 on September 15, which com pares with $1.20 on August 15, and 87c on September 15, 1923. H og prices sustained a good advance during the second week of September, recovering all the loss recorded in late August. Cotton prices declined stead ily through the period under review, middling in the St. Louis market falling from 28c per pound on A ugust 15 to 22c on September 15, the latter figure comparing with 27y2c on September 15, 1923. The arrival of cooler weather, coupled with fur ther improvement in industry and diminishing stocks in consumers’ hands, had a stimulating effect on the coal situation. Reports of producers and selling agen cies of bituminous coal, while still reflecting depres sion, indicated larger sales and better prospects than in many months. Though buying in most instances continues to be for immediate requirements, consum p tion is gradually increasing and the seasonal broaden ing in general needs is apparent. Activities in the several coal fields of the district are augmenting. A number of mines that have been closed since the de pression set in have reopened, and more are preparing to resume production, while mines recently on much reduced schedules are increasing their working time. The demand for steaming coal is still sluggish, but inquiries from manufacturers and public utility com panies are more numerous and indicate a resumption of buying in the near future. The dom estic demand in the large cities has picked up materially since Septem ber 1, and there is a fair movement of lump coal to the rural sections. Prices were advanced in many in stances at the first of this month, the increase ranging from 15c to 50c per ton. Coke is m oving in larger volume, both the domestic and industrial demand hav ing developed improvement since the last week of August. Stocks on the yards of by-product coke plants, however, continue abnormally large. Production of soft coal for the country as a whole during the first 206 working days of the calendar year, or to August 30, was 294,629,000 net tons, which compares with 366.349.000 tons for the corresponding period in 1923, 239.553.000 tons in 1922 and 391,426,000 tons in 1918. Freight traffic of the railroads operating in this district shows the usual seasonal stimulation, due to the movement of cereals and other crops. In the week ended August 30, car loadings for the country as a whole totaled 1,020,339 cars, an increase of 38,091 cars over the week before, and incidentally the high est volume of weekly loadings this year. A ll com m o dities showed increases over the preceding week ex cept live stock, with coal and miscellaneous freight showing the largest gains. The total for the week of August 30, however, was a decrease of 71,811 cars un der the corresponding week last year, but 96,533 cars in excess of the same period in 1922. T he cumulative total from January 1 to August 23 while slightly be low that of the corresponding period last year, is well in excess of the same periods in 1920, 1921 and 1922. The Terminal Railway Association of St. Louis, which handles interchanges for 28 connecting carriers, inter changed 210,829 loads in August, the largest number since last January, and com paring with 181,825 loads in July and 217,651 loads in August, 1923. For the first nine days of September 58,326 loads were inter changed against 59,706 loads for the corresponding period in July and 63,533 loads in September, 1923 Passenger traffic of the reporting roads decreased 6 per cent in August under the same month a year ago. Tonnage m oved by the Mississippi River section of the Federal barge line between St. Louis and New O r leans during A ugust amounted to 76,000 tons, which compares with 70,387 tons in July and 80,413 tons in August, 1923. Collections in both the wholesale and retail sec tions of distribution showed marked improvement during the period under review. There were fewer complaints o f spotty conditions, which have featured reports of collections during the earlier months this year. Since the com pletion of the winter wheat har vest, liquidation of indebtedness in areas where that cereal is the chief crop has been on a satisfactory scale. Jobbers in the large cities report settlements by their country customers since September 1 are exceeding expectations. Generally through the South bills are being prom ptly met, and many accounts o f long stand ing have been paid. The return of vacationists has had a stimulating effect on retail collections in the large centers of population since the first of this month. Some backwardness is still noted in the coal fields, and in sections where crop results were disap pointing. Replies to 408 questionnaires addressed to representative interests in various lines throughout the district show the follow ing results: Excellent Good Fair Poor August, 1924.-3.4% 36.6% 51.4% 8.6% 30.5 54.5 12.9 July, 1924......... 2.1 August, 1923....3.8 36.6 52.9 6.7 Commercial failures in the Eighth Federal Reserve District during August, according to Dun’s, numbered 91, involving liabilities of $922,409 against 64 defaults in July with indebtedness of $579,643, and 45 failures for $694,960 in August, 1923. The per capita circulation of the United States on September 1 was $42.28, against $41.36 on August I and $42.85 to September 1, 1923. M AN U FA CTU R IN G AND W H O L E S A L E Automobiles The upward trend in automobile production for the country as a whole, which started in July, contin ued during August, combined output of passenger cars and trucks during the latter month being 6.1 per cent larger than in July. A s contrasted with a year ago, however, the A ugust output showed a loss of 19.1 per cent, that being the fifth consecutive month in which the year-to-year comparison was unfavorable. Manufacturers reporting direct or through the Nation al Autom obile Chamber of Com m erce built 251,553 passenger cars in August, against 237,431 in July and 313,972 in August, 1923. The output of trucks was 26,781 in August, compared with 24,895 in July and 29,882 in August, 1923. Distribution of automobiles in this district is hold ing up above expectations, sales of new cars by 320 reporting dealers during August showing a gain of approximately 8.3 per cent over the same month in 1923, and 12 per cent over the July total this year. A s was the case during July, a considerable part of the increase was accounted for by country dealers. H eavy replacement sales are being made by farmers in Missouri, Illinois, Kentucky, and Arkansas. Since the first of this month city dealers report a pick ing up in business, their sales and prospects being affected by the return of vacationists. The supply of cars of all descriptions is plentiful, but stocks in deal ers’ hands show a further decrease under the preceding month, though the total is still higher than a year ago. Gains in sales of parts and accessories during August were relatively larger than in the case of automobiles, which fact is ascribed to intensive selling campaigns and heavy purchases for equipping used cars. The tire market continues weak, with stock in retailers’ hands heavy. The used car situation is described as satisfactory, stocks being further decreased during August and closing, that month with a smaller aggre gate than at the same period last year. Boots and Shoes August sales of the 11 reporting interests were 35.1 per cent larger than for the corresponding period in 1923, and 9.1 per cent in excess of the July total this year. Results during the first tw o weeks of Sep tember indicate a continuance o f the upturn recorded during August. Orders from virtually all sections of the trade territory are com ing in in excellent shape. The average size of orders is considerably larger than had been the case earlier this year, which fact coupled with a broadening of assortments purchased, is taken to indicate that retail merchants are covering their full requirements. W hile style changes are numerous, the comment is made that the demand, both for wom en’s and men’s wear, is along saner and more conservative lines than during the past tw o or three years. Prices for finished goods showed no change w orthy of note, though the trend is slightly firmer, in sympathy with the stronger market for raw materials. A s compared with a year ago, prices o f finished goods average about 5 per cent lower. Factory operation was at from 95 to 100 per cent of capacity. The total number of pairs of shoes manufactured in this district during August was 11.3 per cent larger than the output of the pre ceding month and for the country as a whole, August production was 19.4 per cent over the July total. Clothing A s compared with a year ago A ugust sales of the 10 reporting interests showed a gain of 17.9 per cent and were 45.6 per cent larger than the July total this year. The increase in August over July was accounted for largely by seasonal considerations. Conditions are reported im proving generally, with betterment par ticularly marked in the rural districts. Retailers are more disposed to anticipate their future needs than heretofore. The strong tone of the w ool market has had a stimulating effect on ordering of apparel based on that material, but manufacturers of men’s clothing report strenuous opposition on the part o f their cus tomers to any price advances. W om en ’s suits and cloaks are m oving in satisfactory volume, with ad vance orders well in excess of this time a year ago. Drugs and Chemicals A further decrease in business in this classification took place, sales of the 11 reporting interests during August being 6.4 per cent less than during the same month in 1923 and 4.7 per cent below the July total this year. A considerable part o f the decrease was accounted for in the fine drug and chemical section, consumers being disposed to purchase on an extremely conservative basis and only for immediate needs. Some improvement in the demand for heavy chemi cals by manufacturers was noted, but this had not proceeded sufficiently far to offset losses elsewhere. There was a good movement of paper goods and sun dries, and the opening of the schools had a stimulating effect on sales of classroom supplies. Prices of drugs and chemicals showed no material changes, advances and declines about balancing each other. Sales of soda fountain supplies in A ugust were under those of a year ago. Dry Goods A s contrasted with a year ago, A ugust sales of the 12 reporting interests were less by 1.3 per cent, but showed a gain of 61.4 per cent over the July total this year. The gain in A ugust over July is partly ac counted for by seasonal considerations, but is consid erably larger than the average of the past several years. Orders received since first of this month indi cate a continuance of the recent improvement. Stocks in retailers’ hands are at a low ebb, and there is a dis position to replenish in anticipation of late fall and winter demands. T h e demand for both staples and specialties has broadened, and retailers in all sections are buying more steadily than heretofore. The irregu lar course of the raw cotton and silk markets is caus ing hesitation in buying of goods based on those mater ials. Prices on a number o f important cotton fabrics have declined from 2 to 5 per cent since September 1. The recent upturn in w oolen prices has had a stimu lating effect on the demand for w oolen and worsted goods. The demand for hosiery shows slight im prove ment, with stocks in all positions somewhat better than earlier in the year. Underwear is m oving in good volume, but sales of men’s w ork clothes continue be low normal. Leading millinery interests complain of continued depression in their line, and report decreases in their August sales, both as compared with the pre ceding month, and the corresponding period last year. Unfavorable weather and uncertainty relative to prices and styles are given as the main influencing factors. Electrical Supplies Sales of the 12 reporting interests in August were 23.2 per cent under the same month in 1923, and 5.1 per cent below the July total this year. The decrease under a year ago is accounted for in part by smaller sales to the automotive interests and a falling off in the demand for building installations. There was also a heavy decrease in purchasing of supplies by the coal mining companies and oil fields. Moderate gains in sales of household appliances were reported, and busi ness in radio sets is holding up in excellent shape. Pole and line hardware was quiet. Aside from the recent advances in copper wire and cable, prices were unchanged. Fire-Clay Products August sales of the 5 reporting interests were 20.4 per cent under the corresponding period a year ago, but were 1.4 per cent larger than the July, 1923, total. The increased activities at furnaces and foun dries is reflected in a better demand for relining mater ials, but sales to the iron and steel industry are still below normal. Cement manufacturers and the lead and zinc smelting interests continue to purchase freely, though in small quantities. Some substantial inquir ies for vitrified jobs have appeared, but contracts actually closed are not impressive. Aside from a reduc tion of 5 per cent in brick, prices were unchanged Flour Production of the 11 leading mills of the district during August was 367,040 barrels, the highest since last November, and comparing with 272,300 barrels in July and 433,218 barrels in August, 1923. Millers report a good, steady domestic trade, with buying by the South o f soft flours in better volume than for sev eral months. Shipping directions on flour previously purchased were excellent, and many of the mills were grinding at capacity to complete orders. A fair export demand from Europe was reported, centering chiefly in low-grades and high clears, both of which were relatively scarce. Good sales of both hard and soft flours are being made to the W est Indies and South and Central American countries. Price fluctuations were narrow, and were affected principally by changes in the cash wheat market. Abundant supplies of high quality milling wheat were available. Furniture Follow ing conditions of extreme dullness extend ing over many months, the furniture industry devel oped decided improvement during the period under review. W hile August sales of the 28 reporting inter ests were 2.9 per cent under the same month in 1923, they exceeded the July total this year by 34.1 per cent. Purchasing by dealers is on a more liberal scale, with stock orders more numerous than at any time for more than tw o years. Improvement extends fairly well through the entire line, but is particularly notable in the demand for furniture for theaters, schools, hotels and offices. Production at all the principal manufac tories has been increased, with several important plants working up to 80 per cent of capacity, against 35 per cent six weeks ago. The special furniture trade week, held in Evansville during the first week of September, resulted in sales well up to expectations and an unusually large attendance of buyers. Groceries Conditions in this classification developed only minor changes during the past thirty days. August sales of the 22 reporting interests w ere 0.2 per cent larger than for the same month in 1923, and 0.4 per cent below the July total this year. The general trend is toward improvement, especially in the farming dis tricts. Consumption holds up well, and stocks in retail ers hands are for the m ost part below normal. The heavy marketing of fresh fruits and vegetables has held down sales of canned goods, but ordering for future requiremnets is in larger volum e than a year ago. The seasonal demand for sugar for preserving is up to expectations, and stocks of this staple continue light, with prices firm. The movem ent of candy is brisk, with dealers anticipating their future require ments. The recent upturn in prices has had no affect on sales of tea and coffee, distribution continuing on a large scale. Hardware August sales of the 12 reporting interests were 0.5 per cent less than for the corresponding month in 1923, but 12.7 per cent in excess of the July total this year. Steady improvement in all departments of the line is reported, with sales of com m odities for use in the country more satisfactory than at any time this year. The demand for builders’ hardware holds up well, and shelf hardware is being purchased in larger volume than heretofore. Sales of cans, jars, and gen eral preserving and packing supplies are reported on a large scale, and there has been an excellent m ove ment of fruit presses, cider mills and w ooden contain ers. Price changes have been fairly numerous, but of minor importance. Jobbers report ordering for goods for next spring slightly better than at the same time last year, but still backward as compared with past years. Iron and Steel Products Improvement in this classification, while slower than expected in some quarters, has been steady and in the form of increased orders at mills, machine shops, foundries and by the jobbin g trade. The melt of pig iron during the period under review showed a fair gain over the similar period immediately preceding, and operations at iron and steel plants were at a high er rate. The demand from the building industry is holding up well, fabricators reporting an excellent vol ume of small orders, with inquiries for large jobs more numerous than heretofore. Buying by the railroads continues the most active branch of the industry. The range of inquiries for equipment, bridge work, track materials and miscellaneous needs has broadened and represents a large aggregate tonnage. Plants special izing in railroad castings have orders sufficient to insure their present rate o f operations through O cto ber. Further improvement in advance bookings was reported by stove manufacturers and makers of farm implements. A number of stove foundries which for the past several months have been operating only tw o to three days a week, are now w orking four to five days. Prices of both raw and finished materials made further progress in the direction of stabilization, changes recorded being relatively narrow and affecting a very limited number of com m odities. For the coun try as a whole production of pig iron recorded a gain o f approximately 6 per cent in A ugust over the pre ceding month, thus bringing to a halt a steady decline of four months. Production of steel ingots in August also made substantial gains. P ig iron prices were steady to a shade firmer, No. 2 Southern foundry iron — 1.75 to 2.25 per cent silicon— selling at $18 per ton, while Northern iron of the same analysis ranged from $20.50 to $21. Finished steel requirements of the auto mobile and parts manufacturers are increasing and the mills are receiving heavier specifications from that source. A further recession in the demand for drill ing supplies from the oil fields was noted, but the oil companies have placed some substantial orders for tank plates and tin plate. W arehouse interests report a good volume of current sales, but add that their cus tomers show unusual hesitancy in regard to future commitments. A slightly better tone was noted in the machine tool situation, though actual sales showed only minor improvement. Scrap iron and steel prices were again higher, with advances particularly conspic uous in heavy melting steel, rails for rolling and all steel specialties. July sales of stove manufacturers, 7 reporting, were 13.4 per cent less than during the same month in 1923, but 72.0 per cent larger than the July total this year; railway supplies, 5 reporting, de creased 4.8 per cent under last year, but gained 12.6 per cent over July this year ; farm implements, 6 re porting, decreased 18.6 per cent under August, 1924, but increased 9.3 per cent over the July total this year; job foundries, 5 reporting, increased 43.7 per cent over August, 1923, and 22.1 per cent over July this y e a r; manufacturers of boilers, stacks, elevators, radiators, wire rope and miscellaneous products, 14 reporting, decreased 3.2 per cent under August, 1923, but gained 11.4 per cent over the July, 1924, total. Lumber A quiet condition in the lumber trade of the dis trict has been relieved by signs of improvement in September. Fall buying and inquiry are becom ing mildly evident, though it is not expected that volume purchasing in yellow pine will start until around mid fall. The change for the better shows more strongly in hardwoods, especially in the lower grades. The flooring mills, which continue very active, are large takers of com m on o a k ; box factories reflect an im prov ing business in their purchases, and planing mills and kindred establishments are ordering against a steady and considerable inflow of seasonal business. Purchasing by furniture manufacturers and car build ers is on a more liberal scale than heretofore. W estern lumbers are generally strong or steady, and upper grades in fir finish, ceiling, partition and flooring easily maintain recent advances. Southern pine prices, how ever, are quite irregular, with transit stock selling $2 to $3 off the advanced mill prices prevailing around the first of August. Consumption of Electricity In the five largest cities of the district consum p tion of electricity by selected industrial customers of the public utility companies gained 3.5 per cent over the preceding month this year. The largest increases were in Louisville and Evansville, with the heavier loads of furniture manufacturers accounting for most of the betterment in the latter city. A s contrasted with the corresponding month in 1923, the returns for all cities showed decreases, the total for all centers being 6.1 per cent. The losses were distributed generally through all classes of users, but particularly pro nounced in iron and steel, air products and the pack ing industry. Detail figures fo llo w : No. of Aug., July, custom1924 1924 ers *K.W.H. *K.W.H. Evansville ....40 ' 1,048 ' 963 Little Rock....35 1,211 1,242 Louisville .....67 4,057 3,598 Memphis .....31 964 1,053 St. Louis.....81 13,628 13,342 Totals....254 20,908 20,198 *In thousands (000 omitted). Aug., 1924 Aug., Aug. 1924 comp, to 1923 comp, to July, 1924 *K.W.H. Aug. 1923 ' + 8.8% 1,269 — 17.4% — 2.S 1,243 — 2.6 +12.8 4,239 — 4.3 — 8.5 1,027 — 6.1 + 2.1 14,478 — 5.9 + 3.5 22,256 — 6.1 The follow ing figures, com piled by the Depart ment of Interior, give kilowatt production for both lighting and industrial purposes for the entire cou n try: By water powerBy fuels July, 1924............................................. 1,614,850 ’ 2,983,691 June, 1924............................................. 1,705,277 2,847,326 July, 1923............................................. 1,665,697 2,870,488 Totals 4,598,541 4,552,603 4,536,185 R E T A IL More seasonable weather contributed to a further slight improvement in business in the retail depart ment of distribution during the period under review. Better sales were reported by clothiers, with the move ment of fall woolens, knit goods and underwear well up to expectations. Generally through the agricultural sections retailers are enjoying a better business than at any similar period in more than three years. They report that buying is confined chiefly to necessities, but the volume of such goods going to ultimate con sumers is large. Jewelers report the usual seasonal improvement in their sales, with results since Septem ber 1 showing slightly more than the normal increase. Hardware and electrical supplies are active, and the movement of seasonal sporting goods is larger than at this time last year. Sales of stationery, school sup plies and furniture were reported the largest of any month this year. August sales of the leading depart ment stores of the district were 7.5 per cent under the corresponding month in 1923, and for the two months ending August 31 were 1.2 per cent under the same period a year ago. Results during the first half of September, however, indicate a substantial gain over a year ago. Annual rate of Net sales comparisons Stocks on hand stock turnover Aug. 1924 Two months ending Aug. 31, 1924 For 2 months comp, to Aug. 31, 1924, to comp, to ending Aug. 1923 same period, 1923 Aug. 31, 1923 Aug. 31, 1924 Evansville .........— 4.7% — 4.9% — 14.3% 1.71 Little Rock.........— 2.0 — 2.3 + 1.7 1.91 Louisville ...........— 7.9 — 4.4 + 4 -5 1.99 Memphis ............. — 12.7 +18.1 — 3.1 1.94 Quincy .............. — 3.9 — 2.8 — 8.4 1.89 St. Louis.............— 7.2 — 5.6 — 3.7 2.24 — 13.5 — 19.1 1.29 Springfield .........— 7.0 8th District.........— 7.5 — 1.2 + 1.7 , 2.07 A G R IC U L T U R E Progress o f crops during the period under review was rather irregular, and conditions as a whole are spotty. In some localities disastrous results of drouth and extreme hot weather were apparent, particularly in Southern areas east of the Mississippi River, where prospects for fruits, vegetables, tobacco and corn were lowered. A ccordin g to the U. S. Department of A gri culture the com posite condition o f all crops in states w holly or partly within the Eighth Federal Reserve District (1 0 0 = 10-year average) was 92.2 per cent on September 1, against 97 per cent on A ugust 1 and 100.17 per cent on September 1, 1923. H ow ever, ac counts relative to crops harvested earlier in the sea son continue in the main favorable, both as regards quality and quantity and marketing conditions. Rela tive to the late crops there are numerous optimistic reports, as for instance corn in the Southern sections of Missouri and Illinois which is the best since 1917. Generally the agricultural position continued the im provement noted in the preceding issue of this report. W ith higher prices for cereals, live stock and many other products than a year ago, farmers are feeling more optimistic, and setting about preparing their programs for next season’s activities with more con fidence than for the past several years. Threshing of wheat has been completed, except in the case of a limited quantity of stacked grain, and latest returns indicate yields well up to expectations. There were scattered complaints of damage to wheat in the shock, but this affected quality principally, and resulted in no material change in total output. Mar keting of the new crop grain was somewhat larger than usual, farmers taking advantage of the favorable prices to dispose of their stocks. Much ground has been plowed for winter wheat in states of the district, and seeding has made substantial progress, though this work was interfered with to some extent by dry weather. Total wheat production for the district is estimated at 55,246,000 bushels, against 83,426,000 bushels last year. The corn crop is still from tw o to four weeks late, little of the backwardness having been caught up during the past thirty days. Stands generally are irreg ular, and it is very essential that warm, dry weather continue late into the fall in order to mature the crpp. Late planted corn, of which the amount is unusually large because of the late sow ing season, is in less pros perous condition than the early seeded grain. Gener ally through the South the crop made good progress during the last half of August, which was the best corn weather of the season, and in some counties pros pects are the best in a number of years. There are scattered reports of insect infestation and damage from storms. Regardless of weather conditions to harvest, a large part of the crop will be soft, and farmers are planning to feed much soft corn to cattle. The total production of corn in this district is estimated at 349,060,000 bushels, against 403,090,000 bushels in 1923. Oats made further improvement in August, and the crop in this district will be large. Quality was lowered considerably by rains while in the shock, and flood and storm loss in some localities was severe. Total output for the district is estimated at 61,374,000 bushels, which compares with 52,072,000 bushels har vested last year. In Illinois the oats condition on Sep tember 1 was 89 per cent, indicating a yield of 39.6 bushels per acre, while the average in Missouri will be 27.6 bushels per acre. Corn — Oats The U. S. Dept, of Agriculture, in its report as of September 1, 1924, gives condition of corn and oats in states of the Eighth Federal Reserve District as fo llo w s : Corn * Production____________ Farm price per bu. Harvested Condition Forceast 1924 5-yr. av. Aug. 15 September 1 from condition Aug. 1 1923 1918-22 1924 1923 1924 10-yr. Sept. 1 av. ' b" cents cents Bu. Bu. " * BuT % '% 80 337,312 317,273 104 282,590 *281,719 78 177,513 105 84 192,616 115,190 123,567 81 Indiana ....55 102 127 87,866 • 89,159 78,336 Kentucky 74 83 73,378 88 109 173,702 196,860 72 187,495 170,327 Missouri ..73 125 108 73,941 83,241 77,609 65,820 Tennessee 67 83 107.4 87.0 U.S.Total 66.4 77.9 2,512,888 2,576,440 3,046,387 2,899,428 Oats Illinois ....89 Indiana ....93 Missouri ..80 U.S.Total 89.3 *In thousands 146,005 135,100 163,762 81 162,064 59,088 48,692 67,731 77 69,623 42,189 34,500 42,208 75 41,897 79.7 1,486,412 1,439,041 1,299,823 1,302,516 (000 omitted). 46 49 52 49.1 33 34 38 37.6 H ay harvesting continued throughout August, and generally yields are satisfactory though dry weath er cut heavily into the crops in Kentucky, Tennessee and Southern Indiana. Frequent rains during the harvest period served to lower quality. In many sec tions the clover crop was the best in recent years. Soybeans, cowpeas, kafir and other emergency crops, planted in sections where corn in short, promise good yields. Pastures are reported uneven, but recent rains have brought considerable improvement. The condi tion of live stock showed no change as contrasted with the preceding thirty days. Except in the areas visited by drouth, the condi tion of late fruits and vegetables underwent improve ment during the period under review. The condition of apples in Illinois on September 1 was slightly below the 10-year average, but in Missouri and Arkansas were well over the average, and in the two latter states the commercial crop will exceed that of last year. Peaches turned out well in the Southern stretches of the district, but were a short crop further north. Tom atoes in the commercial areas are generally good, and heavy shipments have been made. The earlier promise of grapes has been cut down by rot. The condition and prospective yield of sweet potatoes was about the same as a month earlier. The white potato crop is generally good, with the Illinois condition 91 per cent, the best in many years, and comparing with the 10-year average of 66 per cent. In Missouri the September 1 condition was 85 per cent, and in Indiana 83 per cent. Total production for the district is estimated at 18,377,000 bushels, against 18,223,000 bushels last year. T obacco prospects deteriorated further during August, the total estimated yield for this district based on September 1 condition being 322,903,000 pounds a decrease of 13,455,000 pounds under the August 1 forecast and com paring with 396,737,000 pounds har vested in 1923. T he loss is ascribed to generally un favorable weather conditions for development of the weed. Ripening has been backward, and in some sec tions drouth has adversely affected results. The dry weather, however, was not an unmixed evil, as it served to check the spread of field-fire, which earlier in the season threatened serious damage. The greater part of the early planting has been cut and housed, and is curing reasonably well. Cutting of the late planting, which constitutes a large portion of the crop, is progressing slowly. Numerous complaints are received of the large quantity of very small tobacco. This part of the crop was benefitted some by the recent rains, but not to the extent expected. Prices of old crop tobacco were about the same as have prevailed for some time past. The splendid rice prospects indicated earlier in the season were adversely modified during August by extreme heat and lack of moisture. W ithal the outlook continues good, the condition in Arkansas on Septem ber 1 being 84 per cent, which indicates a yield of 4 5 ^ bushels per acre and a total production of 6,985,000 bushels. Early rices are maturing rapidly and harvesting is in progress. Market conditions are exceptionally good, due largely to the small carryover and generally strong demand. W hile no new rice has been placed on the market from this district, quota tions indicate a price o f about $1.50 per bushel on N.o 1 rices, about 25c more than received last year. Ultimate production depends on the amount of aban donment, which it is reported may be large, owing to lack o f water. There was slight deterioration in the cotton crop for this district during August, the September 1 fore cast being for 2,259,000 bales, against 2,268,000 bales on A ugust 1. T h e indicated yield as of September 1, however, is 958,000 bales larger than the 1,211,000 bales produced in 1923. Reports from scattered locali ties tell of the best prospects in several years, with stands good and cultivation thorough. There has been extensive use of poisons and fertilizers, with mainly satisfactory results. Boll weevil damage is negligible in many important sections, and complaints of injury from other insects pests are relatively few. Picking is in progress, and almost universally labor is adequate for all requirements. Live Stock Movement Receipts and shipments at St. Louis, as reported by the National Stock Yards, were as follow s: ^Receipts Aug. July Aug. 1924 1924 1923 TST' 162 Cattle and Calves................... ...132 Hogs ......................................... 285 319 336 Horses and Mules...................... 4 2 6 76 60 Sheep ....................................... 63 *In thousands (000 omitted). * Shipments Aug. July Aug. 1924 1924 1923 *~90 78* T H 206 201 228 4 2 4 18 14 20 Commodity Movement Receipts and shipments at St. Louis, as reported by the Merchants’ Exchange, were as fo llo w s : _______ ^Receipts_______ _____ * Shipments Aug. July Aug. Aug. July Aug. 1924 1924 1923 1924 1924 1923 Beef, lbs...................... 103 197 1,252 24,790 24,605 27,226 Com, bu...................... 1,971 3,701 2,582 1,458 2,149 1,989 Flour, bbls.................. 431 441 446 502 465 566 Hides, lbs.................... 8,482 6,101 6,739 11,359 8,479 9,434 Lard, lbs...................... 7,164 6,716 7,53411,797 14,514 13,387 262 170 216 219 116 157 Lead, pigs.................... Lumber, cars.............. 20 17 20 12 11 14 Oats, bu...................... 3,684 1,832 3,434 2,576 1,634 2,737 Pork, lbs...................... 21,676 23,933 21,826 31,702 35,299 32,922 Wheat, bu.................... 9,200 3,692 5,8344,964 1,843 4,398 Zinc, slabs.................... 199 188 277 225 233 269 *In thousands (000 omitted). Commodity Prices Range of prices in the St. Louis market between August 15, 1924, and September 15, 1924, with closing quotations on the latter date, and on September 15, Wheat High September ...........per bu.$1.32 December ............. “ 1.37*4 May .................... “ 1.42% No. 2 red winter.. “ 1.44^ No. 2 hard........... “ 1.33 Corn “ 1.21 September ........... December ............. “ 1.18*g May ...................... “ 1.1974 “ 1.21 No. 2...................... No. 2 white........... “ 1.21 Oats September ........... “ .56 No. 2 white........... “ .55% Flour Soft patent...........per bbl. 7.50 Spring patent....... “ 7.40 Middling cotton.....per lb. .27^ Hogs on hoof.........per cwt.10.60 Low Sept. 15, 1924 Sept. 15, 1923 $1.18«Hs $1.28 * $1.01^4 1.22% 1.29 1-30 1.19 1.33*4 1.395/6 $1.42 @ 1.44 $1.06 1.29 1.09 1.01*4 1.02V & 1.09 1.09 1.16 1.12fg @ 1.03% 1.07H 1.10% 1.04 1.13% 1.16 1.18^ .89^ .87 .66H .67H .89^2 @ .90 .46 .48*4 .40^4 6.35 6.60 .22 6.00 6.50 @ 7.50 7.00 @ 7.10 .22 7.50 @ 10.60 .46% .50% .43% 5.00 5.60 5.60 @5.50 @ 6.15 .27% @ 9.60 BU ILD IN G The period under review was marked by contin ued activity in the building industry. A ll sections report operations on a large scale, but relatively the best showing was made in the South, where much new work of all sorts is being initiated. In both number and value represented, building permits issued in the five largest cities of the district during August ex ceeded the totals of the corresponding period in 1923. Industrial construction figures more prominently in the August lists, and permits were also issued for a number of municipal buildings, hotels, hospitals and schools. A s has been the case since the opening of the outdoor season last spring, highway construction work throughout the district continues on extensive scale. W ith the exception of a scarcity of skilled arti sans in some crafts in tw o of the larger cities, build ing labor was reported plentiful, with wages firm at the recent peak levels. Material prices showed only minor changes. Production of Portland cement for the country as a whole during August, according to the U. S. Geological Survey, was 15,128,000 barrels, the highest on record, and com paring with 14,029,000 bar rels in July and 12,967,000 barrels in August, 1923. Building figures for A ugust fo llo w : ____ New Construction______ *Cost Permits 1924 1923 1924 1923' Evansville .... 176 149' $ 295 '$ 261 Little Rock.... 84 226 266 80 Louisville ..... 342 306 1,154 758 Memphis ..... .. 487 360 1,674 2,104 St. Louis..... .. 833 974 2,157 1,941 Aug. totals....1,922 1,869 ’ $5,506 $5,330' July totals.....1,797 1,645 5,558 4,802 June totals.. ..1,881 1,784 4,944 5,301 *In thousands of dollars (000i omitted). _______Repairs, Permits 1924 1923 79 62 149 103 109 128 120 70 535 666 1,075’ 946 946 1,028 963 1,139 etc.______ *Cost 1924 1923 $ 25 $ 11 53 37 140 60 44 35 356 430 $602 $589 691 661 760 582 F IN A N C IA L The demand for credit from general mercantile and industrial sources during the period under review showed no change w orthy of com m ent as compared with the preceding thirty days, and is described as only m oderately active. Likewise variations in rates charged by commercial banks were slight, though the general average at the middle of September was about % per cent higher than the recent low point. Loan able funds with the banks continue abundant, and de posits are holding up well, the total for reporting mem ber banks being close to the high point for the year. Reports relative to country banks indicate rather spot ty conditions. In some sections there has been excel lent liquidation, the country banks having heavily re duced their loans with city correspondents. Elsewhere, however, country institutions are still well loaned up. In the winter wheat areas there is a disposition on the part of bankers to induce farmers to settle their in debtedness, and payments have been in large volume. Throughout the South the past tw o weeks have developed a more active inquiry for funds for financ ing cotton and tobacco, but due to the lateness of both these crops the demand is not as large as at the corresponding period in many previous years. Some inquiry from the rice section is beginning to appear. The m ost active borrowers at the moment are the grain and milling interests, which have been steadily increasing their lines since the movement of winter wheat began. Commercial Paper August sales of the reporting brokerage interests were 36^4 per cent larger than during the same month a year ago, and 14 per cent in excess of the preceding month this year. Generally the demand is active, with both country banks and financial institutions in the lar ger centers good buyers. The total volum e was mater ially augmented by purchases of banks in Texas, where extensive marketing of cotton has created surplus funds for investment. The low rates, however, are hav ing a detrimental effect on buying by country banks in some localities. Supplies of commercial paper continue fairly plentiful, but as has been the case for the past several months, prime names are relatively scarce. Rates were again lower, ranging from 3j4 to 3% per cent, with occasional transactions on particularly prime paper at 3 per cent. Savings Deposits No. of *Amount of savings deposits banks Sept. 3, Aug. 6, reporting 1924_______ 1924 Evansville .... 4 $ 9,240 $ 9,193 $ Little Rock.... 5 7,585 7,613 Louisville .... 7 26,926 27,218 17,329 17,374 Memphis ..... 4 St. Louis.....12 77,496 76,778 Total.......32 $138,576 *In thousands (000 omitted). $138,176 Sept. 1924 Sept. 1924 Sept. 5, comp, to comp, to 1923Aug. 1924 Sept. 1923 8,994+ 0.5% + 2.7% 7,3330.0 + 3.4 23,347— 1.1 +15.3 18,326— 0.3 — 5.4 72,158+ 0.9 + 7.4 $130,158 + 0.3 * + 6.5 Debits to Individual Accounts *For four weeks ending Sept. 1924 Sept. 1924 Sept. 17, Aug. 20, Sept. 19, comp, to comp, to 1924 1924 1923 Aug. 1924 Sept. 1923 E. St. Louis and Natl. Stock Yards, 111..$ 38,554 El Dorado, Ark............. 7,090 Evansville, Ind.............. 25,335 Fort Smith, Ark............. 9,553 Greenville, Miss............. 2,989 Helena, Ark.................. 4,020 Little Rock, Ark........... 57,224 Louisville, Ky................ 147,675 Memphis, Tenn.............. 108,154 Owensboro, Ky............... 4,923 Quincy, 111...................... 9,920 St. Louis, Mo................ 553,930 Sedalia, Mo.................... 4,392 Springfield, Mo.............. 10,788 $ 38,370 $ 45,532 + 0.5% — 15.3% 7,158 7,919 — 0.9 — 10.5 24,954 28,017 -f- 1.5 — 9.6 9,662 9,486 — 1.1 + 0.7 2,540 2,631 +17.7 +13.6 2,982 3,866 +34.8 + 4.0 48,733 51,002 +17.4 +12.2 141,898 128,721 + 4.1 +14.7 88,040 104,335 +22.8 + 3.7 4,972 4,459 — 1.0 +10.4 7,739 9,082 +28.2 + 9.2 591,936 553,939 — 6.4 0.0 3,493 .................. ... +25.7 ............ 9,867 12,921 + 9.3 — 16.5 Totals........................$984,547 *In thousands (000 omitted). $982,344 ............. + 0.2 + 2.4 Condition of Banks Loans and discounts of the 34 reporting member banks on September 17 were larger by $4,764,000 than a month ago and exceeded those of a year ago by $8,585,000. Investments also increased, the total on September 17 being $4,133,000 greater than a month earlier, but $12,372,000 under the total of a year ago. The gain in investments during the past month was due largely to purchases of United States certificates of indebtedness. Total deposits of the reporting banks increased $8,398,000 over the preceding month and $46,721,000 over the corresponding period in 1923. The follow ing statement shows principal resources and liabilities of reporting member banks in Evans ville, Little Rock, Louisville, Memphis, and St. L o u is : *Sept. 17, *Aug. 13, *Sept. 19, 1924 1924 1923 Number of banks reporting.................................. f34 t34 36 Loans and discounts (incl. rediscounts) Secured by U. S. Govt, obligations................ $ 9,843 $ 9,049 $ 12,244 Secured by other stocks and bonds.................. 151,390 146,973 140,389 All other loans and discounts............................ 313,262 313,709 313,277 Total loans and discounts...................... ...............$474,495 Investments U. S. Pre-War bonds......................................... 14,808 Liberty bonds..................................................... 22,826 Treasury bonds................................................... 2,505 Victory and Treasury notes.............................. 10,140 Certificates of Indebtedness.............................. 3,934 Other securities................................................. 93,238 $469,731 $465,910 15,082 22,978 2,509 9,411 1,205 92,133 15,304 22,865 8,601 20,799 7,065 85,189 Total investments................................................... $147,451 $143,318 Reserve balance with F. R. bank........................ 44,319 38,667 Cash in . vault........................................................... 7,243 7,473 Net demand deposits............................................. 367,339 359,912 Time deposits.......................................................... 201,800 202,948 Government deposits................. ........................... 4,289 2,170 Bills payable and rediscounts with Federal reserve bank Secured by U. S. Govt, obligations............ 880 630 All other........................................................... 4,760 405 *In thousands (000 omitted). tDecrease due to consolidation. Total resources of these 34 banks approximately 54 per cent of the resources of all member banks in the $159,823 37,869 7,981 329,493 188,578 8,636 13,828 33,944 comprise district. Federal Reserve Operations During the past month there was an increase in the amount of paper discounted by the Federal Reserve Bank of St. Louis for its member banks. On Septem ber 17, 1924, the amount of discounted bills held was $23,142,000, whereas on A ugust 13, 1924 the amount was $17,475,000, and on September 19, 1923, it was $69,027,000. Total earning assets on September 17, 1924, were $44,034,000 as compared with $32,368,000 the previous month, and $72,739,000 a year ago. The difference between bills discounted and total earning assets represents purchases of acceptances and govern ment securities in the open market. The combined reserve ratio of this bank against deposit and Federal Reserve note liabilities on September 17, 1924, was 73.7 per cent as compared with 81.2 per cent last month and 51.9 per cent a year ago. During August this bank discounted for 236 of its 629 member banks, which compares with 244 of its 629 member banks accom m o dated in July. The discount rate remains unchanged at 4 per cent. (Compiled September 23, 1924) B U SIN E SS CONDITION IN T H E U N ITED S T A T E S Production The Federal Reserve Board’s index of production in basic industries, adjusted to allow for seasonal variations, continued in August at the same levels as in June and July. Production of steel was substantially larger than in July and the output of pig iron and mill consumption of cotton also increased. Prices Latest figure, August=94. Sugar meltings and production of anthracite and zinc, on the other hand, were smaller. Factory employment increased slightly in August and average weekly earnings in creased 4 per cent owing to less part time employment. Larger working forces were reported in the textile, leather and auto mobile industries. Building contracts awarded, contrary to the usual seasonal trend, were 3 per cent larger in August than* in July. Crop conditions showed further improvement in August and the September 1 estimates on production by the Depart ment of Agriculture were larger for wheat, oats, barley and potatoes. Estimated yields of corn, cotton and tobacco, how ever were smaller. Harvesting has proceeded rapidly this year, and the August marketing of wheat was larger than in either of the last two years. Trade Bank debits, which reflect the volume of business trans actions settled by check, showed about the usual seasonal decrease in August, but were larger than a year ago. Rail roads’ shipments increased slightly. Wholesale trade was 7 per cent larger than in July, but continued to be smaller than a year ago. Department store sales showed less than the usual increase in August and were 7 per cent smaller than last year. Mail orders increased more than usual at this season and were 1 per cent larger than in August, 1923. Merchandise stocks of department stores at the end of August, for the first time this year, were smaller than on the corresponding date of 1923. Latest figure, August=150. and fuel, also advanced. During the first three weeks of Sep tember, prices of wheat, rye, wool and rubber increased, while those of cotton, silk, petroleum and metals declined. Bank Credit Loans and investments of member banks in leading cities continued to increase during the four weeks period ended September 10, and on that date reached a record figure, about $1,000,000,000 above the level of three months earlier. The largest increase was in loans on stocks and bonds and com mercial loans also increased owing partly to seasonal demand for credit. The growth of investments by member banks con tinued though at a somewhat slackened rate. At the Federal reserve banks there was a further increase in holdings of government securities and of acceptances, with the result that in the middle of September, although discounts were at the low point for the year, the total volume of reserve banks credit was higher than at any time since last spring. Seasonal increase in the demand for currency was reflected in a decline in cash reserves and, at the reserve banks in certain agricultural districts, in an increase of Federal reserve note circulation. Slightly firmer conditions in the New York money market in late August and early September were reflected in a slight advance in the rate on commercial paper. After the middle of September a recurrence of easier conditions followed Treasury operations, the September 15 offerings of one year Treasury certificates bearing 2YA per cent interest the same rate as the six months issue sold in June. Latest figures, August. Latest figure, September 17. Wholesale prices, as measured by the index of the Bureau of Labor Statistics, increased 2 per cent in August and were at about the same level as a year ago. The advance was due largely to further increases in prices of farm products and foods, though all other commodities groups, except metals
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