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FEDERAL RESERVE BANK OF ST. LOUIS MONTHLY REPORT ON GENERAL BUSINESS AND AGRICULTURAL CONDITIONS IN FEDERAL RESERVE DISTRICT No. 8 R E L E A S E D FO R P U B L IC A T IO N O N A N D A F T E R T H E M O R N IN G W IL L IA M C H A IR M A N OF TH E O F J U L Y 2 5 , 1919 M C C . M A R T IN BOARD AND FEDERAL R E S E R V E A G E N T The business situation in this District has not materially changed since the last report. Wholesalers and retailers in most lines are doing an active, in some instances a record, business. There are complaints of difficulty in obtaining raw materials and skilled labor. The harvesting of winter wheat is general throughout the District and there is still promise of a large crop, although it will not be as large as was expected. A larger com crop than last year is anticipated. Collections are reported excellent and the amount of indebtedness unusually low. merchandising conditions and promises continued activity. This indicates very satisfactory M AN U F A C T U R IN G — A large shoe manufacturer reports a good volume of orders on hand, but says there is difficulty in obtaining raw materials and skilled female labor. A woodenware manufacturer says restored confidence has resulted in better business and that orders on hand for future delivery are “ very heavy.” High crop prices and an abundance of money in the hands of the farmer have created a strong demand for stoves, and ranges. One stove manufacturer says: 4‘We shall sell all we can make, unless there should be an extraordinary slump in farm crop prices.” A manufacurer of boilers says most manufacturers deferred purchasing or repairing during the war and are now in the market. The hardware line generally is showing greatly increased activity. Flour mills say the outlook is good for the summer and fall and that the new crop movement is a favorable factor affecting their business. Manufacturers of electrical supplies report increases in the amount of their business as high as 20% over June a year ago and 27% over M ay this year. Increased building and more activity on the part of public utilities in building extensions, also the growing demand for electrical specialties such as heating appliances, electrical ranges, washing machines, etc., are factors stimulating the demand. Clothing manufacturers still complain o f a shortage of desirable woolens, and say the demand for their products is beyond the normal footing. Manufacturers of clay products say building materials are in fair demand and are optimistic for the future. A candy manufacturer complains o f the railroad accomodations which he says are poor and result in damage to perishables through delays in shipping. • W HOLESALE A N D JOBBING— A wholesale dealer in shoes says his business increased 61J^% over June last year, and 95% over M ay this year. The uncertainty o f the crop situation in the South, he says, is a disturbing element. A large dry goods house states that its business increased 59% over June last year and continued to gain during the past month as compared with M ay this year. A wholesale dry goods man says retailers are now buying without hesitation. Cotton factors say the poor cotton crop in the South is partly offset, in so far as their business is concerned, b y the rising market. Foreign trading, however, is “ made difficult by the reduced value of the pound sterling, which creates a margin between the local and the Liverpool markets which is not taken care of by the difference in prices.” A wholesale grocery concern reports an increase of 23% over June last year and reports that the demand has gone beyond normal. One wholesale grocer states that there is a slight hesitation on the part of some purchasers who feel that the agitation against the high cost of living may result in some reductions. There is also an inclination to wait for new packing before placing orders for canned goods. Hat and millinery houses had an excellent June. One concern says its orders for future delivery are, “ The biggest in our experience of many years.” Another company reports the astonishing gain of 400% as compared with June a year ago. R ETAIL— Department store's and general stores throughout the district again report increases in business over last year. In some cases, increases as high as 75% are claimed for June over the corresponding month last year. Retail dry goods men state that they are not only buying now for the present, but that they are buying liberally in advance. During the early part of July retail purchasing was greatly stimulated by the holidays. Jewelry is very active. AG RICU LTU R E— Harvesting is in full swing, but the expected yield of winter wheat is considerably cut down b y the fact that the grain is not properly headed. It is shrivelled and there has been considerable lodging. The harvesting o f oats followed closely that of wheat, and now meadows are ripe. All of those duties, including the cultivation of com , coming about the same time, crowded the farmer, particularly so this season, because of the scarcity of capable help. Cotton and com are very late, but indications are that the com yield will be larger than last year. a slight improvement, but the crop will be considerably short of last year’s. Cotton shows According to Government reports, the level of prices paid producers in the United States for the principal crops increased about 1% during June; in the past ten years the price level decreased about 0.4% during June. On July 1 the index figure of prices was about 13.7% higher than a year ago. L IVE STOCK— The report of the St. Louis National Stock Yards for June, 1919, shows increases in the receipts o f hogs, sheep and horses and mules, but a decrease in the receipts of cattle as compared with the corresponding month last year. There were decreases in all shipments as compared with June, 1918. The comparative figures are as follows: Cattle June Receipts.............................................................................................. Shipments........................................................................................... 1919 Hogs 1918 1919 Sheep 1918 85,371 113,427 305,495 223,335 20,098 27,118 83,835 90,435 Horses and Mules 1919 1918 1919 1918 83,36JL 10,223 68,312 10,518 11,328 8,343 6,035 6,203 A new high price for hogs in this locality was established at the St. Louis National Stock Yards on July 9th, when a top price of $22.75 per 100 pounds was reached. LABOR— The unemployment of labor continued to decrease during the past month. There is a strong demand for competent farm labor in the South and for skilled labor in many industries. High prices and the warm weather have resulted in some labor unrest, but, with the exception of a telephone strike which shows some indications of spreading sympathetically to other lines, no serious labor troubles are apparent. BU ILD IN G — The increase in building operations continued with marked acceleration during June. figures for June arc as follows: 1919 Permits Cost .St. Louis................................................................................................................................725 Louisville........................................................................................................................... ...239 Memphis............................................................................................................................ ...237 -LittleRock...........................................................................................................................102 June $2,016,711 473,503 524,390 358,927- Comparative 1918 Permits Cost 514 137 48 53 $891,863 178,512 150,607 59,240 This increase in building activity is making itself felt in stimulating the trades and industries which supply its demands. POSTAL RECEIPTS— Postal receipts for the quarter ended June 30th, 1919, show decreases for Louisville and Little R ock and increases for St. Louis, Memphis and Evansville, in comparison with the corresponding quarter last year. Comparative figures follow: St. Louis................................................................................................................................................................ Louisville..........................................................................................................................:•••................................. Memphis................................................................................................................................................................ LittleR ock........................................................................................................................................................... Evansville............................................................................................................................................................. Quarter Ended June 30, 1919 Quarter Ended June 30, 1918 §1,864,531.78 441,005.15 344,o 74./0 158,588.05 99,788.2o $1,721,848.80 459,965.58 293,300.92 197,725.87 93,741.21 B A N K IN G — The financing of the crop movement resulted in a slightly better demand for money during the past month, but there has been no radical change in the rates. The high, low and customary discount and interest rates prevailing in St. Louis, Louisville, Memphis, and Little Rock from June 16th to July 15th, as reported by banks located in those cities, were as follows: St. Louis Customers’ prime commercial paper: 30 to 90 days............................................. 4 to 6 months............................................ Prime commercial paper purchased in open market: 30 to 90 days ......................................... 4 to 6 months............................................ Loans to other banks...................................... Bankers’ acceptance of 60 to 90 days: Endorsed..................................................... Unendorsed................................................ Loans secured bv prime stock exchange collateral or other current collateral: Demand...................................................... 3 months..................................................... 3 to 6 months............................................ Cattle Loans....................................................... Commodity paper secured by warehouse receipts, etc................................................ Loans secured bv Liberty Bonds and Certificates................................................. Louisville Memphis Little Rock H L C H L C H L C H L C 6 6 5 5U m 5 e 6 5 5 6 6 6 6 5 5 6 6 7 §y2 6 6 6 6 5V2 6 5 5H 5 5 r>% 6 6 6 b}/2 bV2 5 6 6 5}^ 6 5'A 6 5% 5J^ m 5 5 5^ 5J^ 5 4H 4H 0 4x 4M 4H 4H 4H 4H 6 5 6 5 6 6 6 6 5 5 5H 5% 5H 5 V?, 6 6 6 6 6 6 5 5 5 5 6 6 6 6 6 6 6 6 6 5 5 5^ 6 6 6 6 7 7 y2 8 8 6 6 6 7 6 6J4 7 8 6 oJ A 6 6 5 6 6 6 6 8 6 7 6 4% 5K c 4H 5 c m o'A 8 6 6 Dealers in commercial paper state that the demand is larger than they can supply. June, they say, was a record month. Owing to the excellence of collections, firms are in funds and are not large borrowers. Rates are 0 ^ 2 for good to 534 for the best, grades of paper. The condition of the banks in this District at the present time and the changes during the past month are reflected in the following comparative statement showing the principal resources and liabilities of member banks in St. Louis, Louisville, Memphis, Little Rock and Evansville: Number of Banks reporting........................................ United States bonds to secure circulation.............. Other United States bonds, including Liberty Bonds . United States Victorv notes........................................ United States certificates of indebtedness.............. Total United States securities owned............. Loans secured by United States bonds and certificates All other loans and investments................................ Total loans and investments.............................. July 3, 1919 June 6, 1919 36 36 $ 17,156,000 15,421,000 16,544.000 30,931,000 $ 17,056,000 16,566,000 22,660,000 49,905,000 80,052,000 106,187,000 28,682,000 390,064,000 26,366,000 386,813,000 498,798,000 Reserve with the Federal Reserve Bank................. Cash in vault.................................................................... Net Demand deposits on which reserve is computed Time deposits................................................................... Government Deposits.................................................... 39,235,000 9,544,000 300,388,000 98,145,000 22,688,000 519,366,000 39,885,000 10,398,000 289,862,000 97,930,000 55,153,000 The volume of banking business transacted in this District during the past month is indicated by the following comparative table compiled from information received from the Clearing Houses in the cities shown: Debits to Individual Accounts, week ending: St. Louis.............................................................................. Louisville........ ’................................................................... Memphis............................................................................. Little Rock......................................................................... Evansville........................................................................... Debits to Bank Accounts, week ending: St. Louis............................................................................. Louisville............................................................................. Memphis............................................................................. Little Rock..................................................................... Evansville........................................................................ June 18 June 25 July 2 July 9 $176,876,000 39,193,000 34,282,000 6,310,000 4,468,000 $133,861,000 34,687,000 27,544,000 5.291,000 5,111,000 $160,725,000 35,884,000 29,609,000 6,616,000 5,524,000 $104,527,000 35,330,000 26,531,000 6,418,000 3,934,000 June 18 June 25 July 2 July 9 $138,267,000 37,990,000 23,398,000 4,968,000 3,729,000 $126,522,000 33,820,000 20,800,000 4,192,000 2,916,000 $119,138,000 30,257,000 21,414,000 4,220,000 1,411,000 $120,669,000 36,560,000 19,818,000 4,745,000 1,872,000 In June the Federal Reserve Bank of St. Louis discounted a total of $171,043,610.21 of paper for 168 different member banks, which is a decrease of $34,121,933.64 from the amount of paper discounted during M ay and a decrease of 23 in the number of banks accomodated. There was no change in the discount rates of the Federal Reserve Bank dur ing the past month. The rates in effect on July 18, 1919. were as follows: 15 days and loss M E M B E R B A N K S 'C O L L A T E R A L NOTES: Secured by Liberty Bonds or Treasury Certificates..................................................................... Secured by War Finance Corporation Bonds................................................................................. Secured by Bills Receivable................................................................................................................ 1C to 60 days Cl to 90 days 4H % 5% % 4% % 4H %% c/o '' 4X % 4H % 6«% 4 H 7o 4 j| %% 4....... y2%. 91 days to C months 4% 5% 4% R E D ISC O U N TS: Secured by Liberty Bonds or Treasury Certificates..................................................................... Secured by War Finance Corporation Bonds............................................................................... Commercial Paper.................................................................................................................................... Agricultural or Livestock Paper.......................................................................................................... Trade Acceptances................................................................................................................................... 4% 5% 4% 4% 4 /o' § V i% Bankers’ Acceptances purchased at the market rate, subject to agreement. The resources and liabilities of the Federal Reserve Bank of St. Louis on July 11, 1919, as compared to a month ago and a year ago, are shown in the following statement: RESO URCES: June 13,1919 July 11, 1919 July 12, 1918 Gold coin and certificates................................................................................. Gold settlement fund— F. R. Board............................................................. .......... $3,786,000 26,712,000 S 3,535,000 26,720,000 Total gold held bv bank.......................................................................... Gold with foreign agencies............................................................................... Gold with Federal Reserve Agent................................................................. Gold Redemption Fund.................................................................................... ......... 30,498,000 30,255,000 56,528,000 5,520,000 62/259,000 3,363,000 27,059,000 620,000 31,599,000 1,946,000 Total gold revenue..................................................................................... Legal tender notes, silver, etc......................................................................... ......... 92,54C,000 2,047.000 95,877,000 3,561,000 61,224,000 1,039,000 Total reserves.............................................................................................. ......... 95,193,000 99,438,000 62,263,000 Bills discounted— Secured by Government war obligations.................. Bills Discounted— All other............................................................................. Bills bought in open market............................................................................ ......... 62.903.000 10.436.000 4,108,000 47.711.000 10.490.000 8,973,000 25.315.000 28.212.000 2,962,00 Total bills on hand..................................................................................... LT. S. Government bonds.................................................................................. U. S. Certificates of Indebtedness................................................................. ......... 77,447,000 1,153.000 16,182,000 67.174.000 1,153,000 17.068.000 56,489,(MX) 2,233,000 321,000 Total earning assets................................................................................... ......... 94,782,000 85,395,000 59,043,000 Bank premises....................................................................................................... Uncollected items and other deductions from gross deposits................ 5 % redemption fund against F. R. Bank notes........................................ All other resources............................................................................................... ......... 541,000 57,731,000 570,000 476,000 692.000 50,004,000 812.000 469,000 TO T A L RESOU RCES............................................................................. ......... 249,293,000 236.810,000 S . 1,799,000 25,260,000 33,736,000 1,071,000 156,113,000 L IA B IL IT IE S: Capital paid in................................................................................................................ Surplus............................................................................................................................... Government deposits.................................................................................................... Due to members— Reserve Account....................................................................... Deferred availability items......................................................................................... Other credits.................................................................................................................... 3,867,000 1,603,000 24,332,0000 59,089,000 40,653,000 878,000 Total gross deposits............................................................................................. F. R. Notes in actual circulation............................................................................. F. R. Bank notes in circulation— net liability..................................................... All other liabilities......................................................................................................... 124,952,000 110,285,000 83,073,000 103,159,000 103,883,000 67,932,000 14,341,000 15,691,000 ....................................... 1,371,000 500,000 1,500,000 TO T A L LIABILITIES. 249,293,000 3,862,000 3,608,000 2,589,000 ........................................ 8,474,000 13,774,000 64,915,000 47,698,000 36,414,000 21,452,000 482,000 149,000 236,810,000 156,113,000
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