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FEDERAL RESERVE BANK OF ST. LOUIS MONTHLY REPORT ON GENERAL BUS!NESS CONDHIONS !N FEDERAL RESERVE D!STR!CT No. 8 Released for Publication On and After the Afternoon of July 28,1921 W IL L IA M McC. M ARTIN, CHAIRM AN O F T H E BOARD AN D FEDERAL RESERVE AGENT E V E L O P M E N T S in general business during the past thirty days, according to reports of leading interests throughout this district, have on the whole proved unsatisfactory. Declines in volume of trade under the similar period imme diately preceding were the rule, and while a limited number of lines enjoyed moderate activity, others were extremely quiet, and in several important industries conditions bordering on stagnation exist. While stocks of merchandise are low in a majority of instances, and the public needs goods, purchas ing is being pursued with the utmost conservatism. Effects of price disturbances are felt in many !ines, and only where liquidation and readjustment have been carried to the greatest limits is a sus tained recovery noticeable. Some buying for future delivery in drygoods, clothing, groceries and other lines noted a month ago gave rise to hopes that con fidence had been sufRciently restored in values to reestablish the covering of distant requirements on something like the scale usual in past seasons. The volume of such buying, however, showed a decided falling off last month, virtually all orders booked being for immediate shipment or disposal during the next sixty days at the outside. This state of affairs is ascribed by manufacturers and wholesalers to further price declines, also a disposi tion on the part of retail merchants to conserve their cash and keep as close to shore as possible. In the country this attitude is more noticeable than m the larger cities, due to uncertainty relative to the outcome of crops. Specific conditions considered, sentiment is fairly optimistic. The present setback is explained hy the fact that the summer months are normally dull, and that the slowing down which they have brought this year seems greater than usual because of the existing depression. The most recent price reductions, it is pointed out, have brought the com modity market nearer to the final stage of readjust ment, from which the permanent upturn must begin. An extremely hopeful factor is the financial and banking position, which continues to show im provement. Collections, while backward in spots, are on an average about as good as during the two preceding months. Liquidation of accounts under extension continues in gradual and fairly satisfac tory fashion, while in the main new accounts are being paid promptly. The long period of intense and persistent heat pas had both good and ill results upon general bus iness. In the heavier movements its effect has been decidedly depressnig, producing a general tendency to put off and postpone things which were not abso lutely necessary. This trend was noted particularly in building operations, the production and distribu tion of fuel, purchasing of iron and steel goods and other bulky materials. In certain sections the high temperatures were accompanied by drouth, which proved detrimental to agriculture, but over most of the Eighth Federal Reserve District showers tempered the dry spell, and relatively little damage to date is recorded. In the other column, the heat wave has pro moted an active movement of hot weather goods. Calls upon retailers have been heavy, and has al ready ramified back to the wholesale section of dis tribution. Hardware interests report heavy sales of seasonal goods such as refrigerators, ice cream freezers, electric fans, screen sets, etc. Sporting goods and supplies for vacation travel are moving into consumption. According to reporting firms, these seasonal commodities constitute the only clas sification in which the effect of general economy is not felt and which are being taken without quib ble as to price and value. The demand for light weight clothing during June and the first weeks of July is described as the most active experienced in several seasons. Drug houses report that they are taxed to supply the demand for soda fountain sup plies and there is also a heavy call for certain drugs which are palliative of sickness incident to extreme heat. A rather universal comment among manufac turers and wholesalers is the close margin of profit which they are obliged to operate. Backwardness of buyers has given rise to almost unprecedented competition to secure the small business current. Strenuous efforts are being made to reduce pro duction and distribution costs, and according to many of the interests reporting all expedients in that direction have been exhausted short of further wage reductions. June and early July proved unsatisfactory in the automobile industry. While sales of accessories were stimulated to some extent by seasonal motor ing activity, sales of new cars were generally light. Uncertainty relative to prices, according to dealers, is causing their prospects to hold off. In this connection it may be stated that since April 30, when the readjustment was initiated, about twothirds of the approximately 90 makers of pleasure cars in the United States have cut their prices. The percentage of reductions runs from 5 to 34 per cent, and in dollars they range from $25 to $2,000. The decline in accessories and the cost of service has not been in proportion to the ratio of reductions in new cars. Apathy in manufacturing lines is directly re flected in the lack of demand for fuel and statistics of companies selling electric current. According to producers and dealers, the demand for steaming coa! during June was at the lowest ebb of the pres ent retrograde movement. Buying by the indus tries is confined to small tonnages for immediate delivery, with relatively little in the way of con tracting for fall and winter needs. While total sales of current during June of companies reporting were in excess of the same month last year, the increase was due to added small subscribers, mainly house holders. Sales to industries show a decline. A typical company segregating 51 of its largest com mercial subscribers reports the demands of these consumers as follows: Mav, 1920, 24,637.6 K W ; October, 1920, 27,956.8 K W ; May, 1921, 20,704.9 K W ; and June, 1921, 21,086.1 K W . Production of bituminous coal during June was approximately 33,852,000 tons, an increase of 512,000 tons over the revised figures of May, but June contained one more full working day than May. The cumulative production for the present year to June 30 was 226,000,000 tons, and should the second half of the year show no greater output than the first six months, the total for the year will be less than 400,000,000 tons. The last year in which the country required less than 400,000,000 tons was 1909. Reports from railroads operating in this dis trict indicate that the carriers are suffering from the general business depression. Results in freight trafBc during June were less satisfactory than in May, and the early days of July indicate about the same average maintained throughout June. The St. Louis Terminal Railway Association in June interchanged 142,700 loads, against 147,879 loads in May. A slight decrease in the number of idle cars took place, but the surplus of coal cars is clear evidence of stagnation in that industry. Passenger trafHc is relatively much more satisfactory than freight. Vacation travel, judging from figures re ceived up to June 30, will be equal to that of last season. Agricultural conditions through this district during the past thirty days show considerable var iation. In point of quantity the winter wheat yield will exceed that of 1920, but quality of the grain is not uniformly high. Early receipts, especially from the lowlands, show the berry to be shrivelled and light in weight. This is due to extreme heat just before the crop ripened. Oats deteriorated some what during June, and this crop is showing effects of damage from the spring freezes. Generally good accounts are heard from the hay crops, and pastures are in good shape. Reports relative to the growing corn crop are pretty uniformly favorable, but much depends upon the weather from now to harvest Advices relative to cotton all indicate heavily re duced acreage and a low condition of the crop. Weather conditions have not been propitious, and ravages of the boll weevil have cut down prospects seriously in many localities. Indications are for reduced production of rice and tobacco, because of lower prices and difficulties surrounding marketing of these crops during the past season. Passing weeks verify earlier reports of almost complete destruction of the fruit crop in a large part of the district. Apples are a complete failure, and only the extreme Southern counties will produce peaches in commercial quantities. Shipments of berries, vegetables and melons have been large, and returns from these small crops have aided materially in enabling farmers to offset their losses. Reports relative to collections show consid erable unevenness, though the general average during the period under review was about equal to the preceding month. There is little complaint rel ative to payments on current accounts, and a larger number of merchants are taking advantage of dis counts. In sections where harvest is in progress there are reports of backwardness, due to the fact that farmers are too busy with field work to give thought to their bookkeeping. Answers to 350 questionnaires addressed to the various lines throughout the district show the following Msults: 2.7 per cent excellent; 32.4 per cent good; 48.7 per centjfair and 16.2 per cent good. The per capita circulation of the United States on July 1 was $53.42, against $55.43 on June 1 and $57.18 on July 1, 1920. Commercial failures in the twelve Federal Reserve Districts during the month of June, with com parative ngures for the same month in 1920, as compiled by Dun s were as follows Minneapolis, Ninth---------------Kansas ^ ity , Tenth------------Dallas, San Francisco, Twelfth.-.^.............. ........... 1921 136 232 71 98 82 130 140 102 31 73 105 120 1920 55 164 26 65 37 30 69 34 21 22 35 116 1921 Liabilities $ 2,546,879 4,736,684 1,939,408 4,744,487 1,478,512 3,522,511 4,476,283 1,974,278 454,553 4,764,647 2,588,787 1,412,345 Total ......... - .................................................... 1^320 674 $34,639,375 June District New York, Second.. Atlanta, Sixth.. Liabilities $ 1,783,684 16,218,230 219,092 975,973 314,156 459,562 2,742,755 2,283,002 306,250 281,255 278,668 7,128,338 $32,990,96$ M A N U F A C T U R IN G A N D W H O L E S A L E Manufacturing activity, except in a limited number of lines, developed a slowing down during the past thirty days as contrasted with the similar period immediately preceding. The the wholeslae section of distnbution. questionnaires sent to manufacturers ^ to ^bole* salers explain the setback in various ways, the chief reason given being uncertainty relative to prices. Merchants and the public, while in need of goods,' are unwilling to stock up on a declining market. This is true particularly of drygoods, clothing, hardware and furniture, there having been further price recessions of greater or lesser degree in all these classifications. Another explanation given was that June and early July fall in the summer, a season which normally is less active than other per iods of the year. Purchasing is confined almost exclusively to merchandise for immediate delivery, both in the case of finished goods and raw materials. Considerable activity is reported in leather goods, furniture, drugs and chemicals and groceries. The last named line, which has undergone thorough readjustment, reported an increase in volume of sales over the preceding month. While raw cotton showed a firmer tendency, cotton goods sustained declines, which reacted adversely on sales of dry goods, millinery, women's ready-to-wear clothing and kindred lines. The severest slump noted, how ever, was in heavy commodities, including iron and steel, bricks, lumber, etc., the movement of which is slower than at any time since the present reaction set in. Material reductions were made in prices by the leading manufacturer of iron and steel, but thus far these concessions have failed to stimu late business. The unanimous opinion among all interests reporting is that no lasting improvement can develop until building is resumed on a consider able scale. The outlet into the rural districts is constricted by economies being practiced by far mers. Sales of implements and farm machinery continue vastly below normal, and no change can be expected until results of the present crop are more definitely known. Boots and Shoes— In numbers of pairs, June shipments of the 11 interests reporting were about 80 per cent of the corresponding month a year ago. Factory operation was maintained at from 90 to 100 per cent of capacity. New orders booked during June were about on a parity with those of May, but a preceptible falling off has been noted since July 1. Prices during the past thirty days have held about steady, but the trend is easier. Raw material prices have not changed much, though some tanners have cut top grades of calf. Clothing— Orders from salesmen on the road slowed down during June, though as compared with earlier months of the year the past thirty days have proved satisfactory. A s compared with a year ago June business with the 22 reporting firms showed a decline of from 35 to 4 2 ^ per cent in dollar value, and of from 4 to 8 per cent in the num ber of garments sold. Manufacturers continue to Mlow the policy of making up little stock for which they have not actual orders. Electrical Supplies— Conditions among the 9 reporting firms show little change from the pre ceding month. Some improvement was shown in sales of seasonable lines, such as electric fans, motor boat supplies and small motors. The de mand for telephone supplies is reported fair, but ^utomobile equipment and materials for transpor tation companies are slow. Sales during June de creased from 35 to 40 per cent under vie same month in 1920, and were 8 per cent leas to 3 per cent better than during May. Iron and Steel Products— Manufacturers of castings report a dearth of new business, and few unfilled orders. Further curtailment of activities at mills, foundries and machine shops has taken place, several plants which had been operating on part time having closed down completely. Sales of pig iron in this district during the past thirty days were the smallest in more than a decade, and prices the lowest on the present retrograde movement. Stove manufacturers are operating on a small frac tion of full time, and despite scant production, re port accumulations of their product. Warehouse interests generally hold large stocks, with the de mand for all varities of finished and semi-finished ferrous wares almost at a standstill. Hardware— June returns of the 9 reporting wholesale interests indicate declines of from 20 to 37 per cent under the corresponding month a year ago. Aside from seasonal lines, the movement of all hardware is slow, and apparently on a necessity basis. Orders for future delivery are nil. A slight improvement in the demand for automobile acces sories has taken place since the first of July. Flour— While business continues well under normal, the 12 reporting mills report sales during the past thirty days the best in several months. The domestic trade has picked up and export buy ing has been on a larger scale. England and the Scandinavian countries have increased their orders. Stocks in this country are low in all positions, and with the exhaustion of reserves, necessity buying assumed real proportions. Operations during the past month were at from 40 to 50 per cent of capac ity. Prices receded sharply during the period under review. Candy— Sales of 9 reporting interests during June showed a decline of from 32 to 43 per cent as compared with the corresponding period a year ago, but were steady to 10 per cent less than during May this year. The trend of prices continues downward, and the recent decline in sugar served to further disturb values. The demand centers chieHy in low priced and seasonal candies, the better grades being relatively neglected. Plant operation varies widely, ranging from 30 to 90 per cent of capacity. Drugs and Chemicals— Business in this classi fication holds up fairly well. Sales in June of the 7 reporting interests were about on a parity with those of May, though from 16 to 22 per cent under the c o rresp o n d in g period a year ago. Goods going to retail drug stores are moving actively, ^ icals for use of manufacturers are very dull. The soda fountain supply business is described as flour ishing, and there is a brisk demand for materials used in concocting home-made beverages. L u m b er— With the advent of summer, the lull in all branches of the lumber industry has become more pronounced, competition is keener lor tne small volume of orders and in virtually all specks dealt in in this district, prices have weakened. An exception is the upper grades ofhardwoods. notably oak and gum, stocks of whtch are scant M d prices higher. A similar tendency, though m lesser degree, is apparent in the upper grades of yellow pine. Common grades oi pine have declined and continue weak. Bulk oi current business in yellow pine is in mixed carlots. Yards are buying on a strictly replacement basis. As only the larger mills are equipped to handle mixed car orders, the small mills are ieeling the brunt oi the depression. Most oi the large mills sell direct to the yards, which adversely affects wholesalers, many oi the latter declaring their business the worst in years. Hard wood interests look ior ireer buying by the iurniture manuiacturers iollowing the summer markets in St. Louis, Chicago and Grand Rapids. Industri als are buying very little, and the hardwood de mand has iallen off appreciably during the past month. Furniture— Business is described by the 14 re porting interests as steady to a shade under last month, and about 75 per cent oi normal. There was a general reduction oi prices as oi July 1, ranging irom 5 to 10 per cent. Steel and brass goods were cut irom 5 to 7 per cent. Stock orders are scarce, and buying is largely ior immediate shipment. R E T A IL Notwithstanding that retailers report a general tailing off in sales during June under the same month last year, many oi them say that the first six months oi 1921 show a slight increase over the same period in 1920. Old established houses report that general business is unusually slow, but very healthy. The buying public is more discrimin ating than ever beiore. Retailers are not burdened with the heavy iuture commitments at high costs that conironted them last iall, and stocks acquired at the higher levels have been pretty thoroughly liquidated. Retailers still complain oi the high cost oi doing business and emphasize especially the item oi extravagant rents. Jewelers report a 10 to 15 per cent decrease in June sales under the same month oi last year. The demand ior precious stones and expensive pieces is extremely dull, but this is counterbalanced in part by the usual demand ior June wedding presents. Seasonal sporting goods continue active. A brisk demand ior outing sup plies such as canoes, bathing suits, and campers* equipment has developed with the recent spell oi hot weather. Sporting goods containing leather were reduced 15 per cent during the month. It is interesting to note that the one time expensive horsehide is now as cheap as the lower grades such as sheep skin. Wash goods and light clothing are meeting much readier sale than other staple arti cles. In wearing apparel it is noticeable that the public is demanding serviceable goods at a iair price rather than iashionable goods at a higher price. Foodstuffs are moving iairly well. Coinci dent with the present hot period the market was iavored with an abundance oi seasonal vegetables and iruits thus enabling the distributor to release them to the public at a lower price than heretoiore. Printers, still ieeling the pressure oi the re cent strike, are marking time but are optimistic as to the outlook ior early iall business. The expected increase in hardware sales iailed to materialize, both city and country business continuing to make a moderate showing. The telephone situation has cleared up considerably as contrasted with a iew months back. Unfilled orders oi the local com panies ior the month oi June were 30 per cent less than the same month a year ago. In St. Louis the call rate (number oi calls per phone per day) ior June was 6.2 per cent while the same month in 1920 only produced a rate oi 5.8 per cent. Figures on retail trade as indicated by reports irom representative department stores ior June, 1921, are as iollows: St. Louis Percentage increase (or decrease) in net sales during June over or under sales in June, 1920 __________________ _________ ___i ___] -3.1 Percentage increase in net sales irom January 1 through June 30, 1921, in comparison with sa!es during the same 6 months oi 1920___ 4.1 Percentage decrease in stocks on hand at the end of June, 1921, in comparison with stocks on hand at the end of June, 1920__________ -6.8 Percentage increase in stocks on hand at the end of June, 1921, in comparison with stocks on hand at the end of May, 1921__________ 1.6 Percentage of average stocks on hand at the end of each month since January 1, 1921, to average monthly sales during the same 6 months ......................... ......................... ........ 313 6 Percentage of outstanding orders on June 30, 1921, to total purchases of merchandise (cost) during the calendar year 1920.......... 5.7 Note: -denotes decrease. Louis ville Memphis Little Rock Evans ville Quincy Dis trict -11.8 -23.2 -8.9 -30.1 -6.9 -8.2 -8.0 -18.8 -5.1 -8.2 -3.4 -2.1 -18.3 -14.4 -10.7 -12.5 -13.0 -9.9 -7.2 -2.6 -1.4 -11.9 -.4 419.5 415.3 288.9 689.9 461.8 344.2 5.2 6.3 2.2 2.2 -.02 5.6 A G R IC U L T U R E Harvesting oi winter wheat in the Eighth Fed eral Reserve District has been about completed, and threshing is in progress in many sections. While production as a whole ior the district will be in excess oi last year, yields are variable and quality not uniiormly high. The total yield in this district, based on the July 1 iorecast oi the Depart ment oi Agriculture, is 66,441,000 bu., 59,805,000 bu. in 1920. Com has made e x c e lle n t growth, and the condition in this general good. Success depends largely upon w w R irom this on, but with average rainfall and tem* peratures results should be all that could be deSred. The July 1 condition indicates a yield in this district of 449,328,000 bu. against 441,118,000 bu. in 1920. The outturn of costs for the district falls under that of last year, actual figures being 68.710.000 bu. against 77,914,000 bu. a year ago. The decrease is ascribed to loss of condition in May and June, which may be accounted for in large part by the freezes in the spring. The hay crop, according to the July 1 forecast, will be 7.559.000 tons, or 624,000 tons less than the actual production of 1920. Prospects for the Irish potato crop have been somewhat reduced by the recent hot spell, but where early planted potatoes have been harvested, results were satisfactory, both in point of yield and quality. Vegetables and miscel laneous small crops are in the main doing well, except where lack of moisture was accentuated by the high temperatures of June and early July. Re ports from the cotton areas are rather generally pessimistic. Weather conditions have been unfav orable almost since planting, and there are numer ous complaints of boll weevil depredation. Plant ers have made unusual efforts to bring the crop through, cultivation having put the Reids in clean condition. Analysis of latest reports from this dis trict indicates that the crop is just holding its own. Rains are needed generally, and unless they ma terialize deterioration is inevitable. The high tem peratures have checked the boll weevil in some sections. Labor is plentiful and cultivation excel lent. The indicated yield as of July 1 in the dis trict is 1,517,000 bales, against 2,085,000 bales last year. Tobacco acreage has been reduced under last year; setting is late and growth slow. There arc complaints of need of moisture in Indiana and sec tions of Kentucky. The U. S. Department of Agriculture, in its report as of July 1, gives the condition of winter wheat and oats in Rve states of this district as follows: C O N D IT IO N July 1 1921 10 yr. av. % % Illinois .......................................82 77 77 Indiana .................. .................. 70 Kentucky .............. .................. 79 83 Missouri ..............i.. .................. 68 79 82 Tennessee ............. .................. 79 FORECAST 1921* from condition June 1 Julyl Bu. Bu. 48,748 42,937 32,359 26,648 7,607 6,765 40,797 32,892 5,034 4,734 DEC. ESTIMATE* 1920 5yr. av. 1915-19 Bu. Bu. 35,720 42,485 23,400 37,936 9,878 5,610 38,402 32,500 7,133 4,028 PRICE PER BU. Julyl 1921 1920 cents cents 248 115 114 259 126 273 258 113 133 288 O ATS Illinois ................... ................... 77 Indiana ................. ................... 73 Missouri ............... ................... 72 86 83 78 39,014 56,119 45,855 44,573 65,175 46,196 34 30 42 52,939 68,799 42,544 115 104 103 The U. S. Department of Agriculture, in its report as of July 1, gives the condition of corn in the seven states of this district as follows: A C R EA G E 1921 % of 1920 Acres* 117 100 101 120 . 99 105 2,761 8,652 4,545 3,333 4,776 6,153 3,491 C O N D IT IO N FORECAST 1921 from July 1 July 1 cond. 1921 10 yr. av. Bu* % % 60,880 82 90 347,637 84 98 185,981 84 93 92,791 87 87 83,007 81 79 182,744 82 90 84,447 87 82 FINAL. EST. 5 yr. av. 1920 1915-19 Bu* Bu.* 49,967 55,224 346.330 294,168 178,777 184,072 97,735 100,650 63,733 63,680 170,354 198,880 84,834 93,100 PRICE PER BU. July 1 1920 1921 cents 220 94 183 53 180 50 213 79 234 105 189 58 218 83 The following table, compiled from commercial sources for the government market report, shows the co ton movement from August 1, 1920 to July 1, 1921: BALES 192021 Port receipts............................................................................................................. i's %072 .................... *....... * * AA Port stocks Interior re ce ip tsZ Z !!^ ^ ................................................ 1292856 — ----------------------------------- ----------------------------------N<"them s p in n e r s 'l^ n ^ Z Z Z Z Z J --------------------------------------------- 2581*050 Swthyn spinners' takings___________________________________________ World s vistble supply of American cotton------------------------------------ 1919-20 6,680,993 893,289 7,073.260 970,557 11,822,992 2,920.862 3,290,221 3,413,916 Range of prices on typical products in the St. Louis grain market between June 15 and July IS, with closing quotations on each of these dates: Ctose July wheat........................... Per bu. September wheat.................... " December wheat.......... - ........." July corn....................... ...... ...." September corn................... .... " December corn..................... ...." July oats.............................. ...." September oats........................" No. 2 red winter wheat........." No. 2 hard winter wheat.... " No. 2 corn................................." No. 2 white corn............... ....." No. 2 white oats...:.............. ...." Flour: soft patent............ Per bbl. Flour: spring patent.......... ...." ^ $1.26% 1.19% $1.30% 131% 134% 61% .63% -61% .39% .41 1.50 1.48 .63 .64% .40 8.30 9.65 .58% .61% *36 .38% $1.46 @ 1.48 150 *58 .61 @ .61% 38 7.40 @ 8.50 8.50 @ 8.75 $1 12% 1.12 1.15% 54% .33 .35% 1.17 1.19 .55 .61 *)?5/4 6.00 7.60 Close Ju'ylS $1.28% 1.29% 1.33% .58 -59% *58% .39% .41 $1.29 @ 1.33 1.30 .63 .64 -40 6.25 @ 6.75 9.00 @ 9.65 LABOR Developments in the labor situation during the past thirty days have been of a negative char acter. Unemployment in certain sections and in dustries has increased, but the slack has been partly taken up by resumption of activities elsewhere and by a large absorption of idle workers by the har vest fields. Scattered reports from the agricultural communities indicate ample hands, with some to spare in Western Missouri and other sections. Farm wages range from 20 to 35 per cent under those paid last year. Resistance on the part of organized labor to reduce compensation has re sulted in scattered strikes throughout the district, among which may be mentioned the teamsters strike in St. Louis, printers strikes in this and other cities, scattered strikes in the building trades, etc. In the district as a whole, judging from reports of ofKcial and semi-ofHcial agencies, unemploy ment has gained from 8 to 12 per cent during the past thirty days. B U IL D IN G In St. Louis and through the district generally the past month has been productive of no change worthy of note in the building situation. Very lit tle construction work is being initiated, and build ings under way are nearing completion. Scattered accounts tell of more activity in the erection of moderate price houses and apartments. Architects and contractors still have a fairly large volume of plans in their vaults awaiting release by their prin cipals. Some reductions in the cost of building materials have been made, but wages in the build ing trades remain stationary at war-time levels. Total costs are too high to encourage investment in building, and banks and other landing agencies are unwilling to lend to anything like full value on the basis of present construction costs. Comparative figures for June in leading cities of the district follow : 1921 New Construction Permits Cost St. .Louis................. — -6 0 2 $1,895,299 Louisville ------------------ .219 910,500 1,040,184 Memphis -------------------- .274 Little Rock.------------------ 69 184,600 Evansville ......... ............. 43 76,930 JUNE 1920 Repairs, etc. Repairs, etc. New Construction Permits Cost Permits Cost Permits Cost_ _ 395 $481,485 481 $254,770 362 $1,379,930 200 83,150 163 97,150 168 919,400 32 33,425 37 21,480 141 625,900 116 73,570 157 44,245 62 128,700 72 3,233 L IV E STO CK Extensive marketing in Mexico of Texas cattle, and lateness in the movement from Oklahoma re sulted in a decrease of 27,335 head received in St. Louis during June under the same month last year. Prices in the St. Louis market have showed little change during the past thirty days as contrasted with a month ago, though daily fluctuations have been quite sharp. Choice native beeves are bring ing from $9 to $9.25 per cwt., with choice yearlings about a quarter higher. Good beef cows run from $5.50 to $6. Good feeder cattle are now available at attractive prices. Receipts of hogs continue to in crease, June producing 275,494 in the local market, a gain of 33,789 head over the same month in 1920! In face of the augmented movement, there has been a steady increase in values, amounting to abtMit $2 on choice porkers and $1 on rough ers and Eastern order buyers purchased ** throughout the period under review. Choice cher hogs and good shipping weights have pasw the $10 mark, the highest since last March. A*r* als of sheep increased 25,806 in June over * h ^ c . responding period in 1920, the total being 11% * Prices have been well maintained despite the wa*"* weather and large supplies. During the latter P**^ of June $12 was paid for prime spring g the market has reacted to the extent of since July 1. A fair number of feeding ^ been shipped to Illinois, Missouri and Indiana during the past thirty days. Louis in June, w ith ^om p ariso^f^r JmH°*^20 Cattle & Calves M21 1920 " 113,915 Recetpts ................ 86,850 Shipments .............48,112 50,550 M 2f 275 494 158,437 shipments of live stock at St. Hogs 1920 241,696 115,777 Sheep 1921 1920 119,163 93,357 53,555 21,943 Horses & Mule* 1921 1920*" 2,233 6,366 2,922 7,401 POSTAL RECEIPTS with t ^ ' c e Z ^ t S s^ w l i" h e Quarter ended June 30,1921 St Louis M e n tis " ................................................................. ^,123,9^.85 Little Rock .......................... ----------------------------------------Evansville .................... ........................ ............................................................... ^ 7^ 98,444.74 Quarter ended March 31,1921 $2,232,646.19 351.737.44 inoM cS! 108,975.91 Quarter ended June 30.1920 $2,129,201.50 354.541.20 160.456 50 97,986.77 COMMODITY MOVEMENT 192t ^ important commodities at St. Louis during June, 1921 and 1920, and May, ixsi, as reported by the Merchants Exchange, were as follows: < 7 . RECEIPTS . , J ""e 1921 May, 1921 Hour barrels ........................ 371.050 366,550 Wheat, bushels ----------- ----- 2,982,164 2,823,807 Corn, bushels---------------------- 1,917,500 2,355,600 2,596,000 Oats, bushels......................... 2,356.000 Lead, ptgs-------------------------- 240.870 266,160 ^mc and spelter, slabs--------67,820 107,420 Lumber, cars--------------------12.432 11,017 Meats, pounds--------------------24,388,700 20,479,500 tresh beef, pounds-----------136,500 513,400 Lard pounds--------------------- 3,184,600 2,145,300 Htdes, pounds........................ 4,757,600 3,484,500 June, 1920 361,010 2,497,200 3.407.300 1,744,000 213,300 455,870 9,647 6,061,400 1,046,700 1.850.300 1,634,600 SHIPMENTS June, 1921 May, 1921 June, 1920 402.560 337,700 412,690 2,439,060 2,208,280 1,731,020 1,791,240 1,308,250 1,625,460 1,888,890 1,758,860 1,679,580 128,320 136,380 205,630 113,590 237,310 822,320 9,840 9,196 7,384 25,428,600 20,795,900 22,368,700 23,360,000 20,371,500 19,652,500 7,494,700 7,204,200 2,639,100 7,444,900 6,109,700 1,634,600 FINANCIAL - ^.Pf*?cipal feature in the financial situation Reserve note liabilities. Between June 15 and July Federal Reserve District during the 14 this ratio ranged from 49.2 to 54.3, and on the fL- f days has been the increased demand latter date stood at 52.1. ^ the country for crop financing purThere has been little change in the market for fnH ^ harvest of winter wheat has been in bankers' acceptances in this District during the last thirty days. The volume of such bills pur **1^ grain is beginning to move in primary markets. Generally the dechased by member banks has been small, and few, if any, bills have originated in this District. Scat cha,. credits continues active, and rates t* by the commercial banks show little variatering purchases have been made by city banks but the volume has been nominal and the market dull. t!tn ^ c o n tra ste d with thirty days ago. A11 legiDepressed conditions which had obtained in vic* u are being met, with excellent prothe commercial paper market during the preceding made for the rural communities p . by the large commercial institutions and the several months continued in a marked degree dur era! Reserve Bank. Commercial borrowers in ing the past thirty days. Banks in the large cities are taking virtually nothing, and seasonal activity ind centers have considerably reduced their in agriculture is engaging resources of country un^f ' gradual liquidation of accounts institutions. An unusually broad spread exists in extension is in progress. In the tobacco and rates, quotations ranging from 6% to 7% per cent, forth**' ^ I c t s the status remains about as set while ordinarily the maximum and minimum are Rn+^ preceding issues of this report. separated by more than a half of one per 15 and July 14 the Federalrarely Reserve emulation of this bank decreased $2,954,(XX), cent. net deposits fell off $6,241,000. During the Aside from a fairlv brisk demand for Federal, State and Municipal obligations, quietness prevails $735 there was a decrease of approximately in the investment market. Bond houses, in many H* the amount of accommodations granted instances, have cut down their sales forces and Loui ^ by the Federal Reserve Bank of St. otherwise entered upon a period of retrenchment. thi. . solidity of basic credit conditions in Corporation bonds, unless offering exceptional cnwnJ-*^t?ct is indicated by the movement of the interest returns and safety, are neglected. oined reserve held against deposit and Federal IN T E R E S T R A T E S Between June 16 and July IS the high, low and customary interest rates, prevaiting in St. Louis LouisviHe, Memphis and Little Rock, as reported by banks in those cities were as foHows: ' St. Louis H l7 c LouisviHe H L C Memphis H L C Little Rock H* L c " Customers Prime Commercial Paper: 30 to 90 days......... - ......................................................8 6 7 7 6 6 8 6 7 8 7 8 4 to 6 months...................- .............................................8 6 7 7 6 6 8 6 7 8 7 8 Prime Commercial Paper purchased in open market: 30 to 90 days.............................................................................................7 6 7 ................................................ 4 to 6 months...................................................................................... ......7 6 7 ................................................ Loans to other banks.......................................................... 7 6 7 7 6 6 8 6 7 7 7 7 Bankers* Acceptances of 60 to 90 days: Endorsed ....................................................................... 5% 5% 5% ............................................................................ Unendorsed .............................................................................................5% 5% 5% .............................................. . Loans secured by prime stock exchange collateral or other current collateral: Demand .........................................................................8 6 7 6 6 6 ..................... 8 7 8 3 months.........................................................................8 6 7 7 6 6 ..................... 8 7 8 3 to 6 months................................................................. 8 6 7 7 6 6 8 6 8 8 7 8 Cattle Loans.......................................................................... 8 7 7 6 6 6 8 6 7 8 7 8 Commodity paper secured by warehouse receipts, etc_8 6% 7 7 6 6 8 6 7 8 7 8 Loans secured by Liberty Bonds and Certificates.......... 7 6 7 6 6 6 7 6 6 8 7 8 C O N D ITIO N OF B A N K S The condition o f banks in this district and changes since a month ago and last year, are reflected in the follow ing comparative statement, showing the principal resources and liabilities o f metnber banks in St. Louis, LouisviHe, Little Rock, Memphis and E vansville: July 6,1921 Number of reporting banks.. 37 Loans and Discounts (including bills rediscounted with F. R. Bank): Secured by U. S. Govt, obligations.................................. $ 20,343,000 Secured by stocks and bonds other than U. S. bonds..... 119,710,000 All other loans and discounts............................................. 312,002,000 Total loans and discounts....... ......................................... $452,055,000 Investments: U. S. Government Bonds............................................ 25,446,000 U. S. Victory Notes..................................................... 1,992,000 U. S. Certificates of Indebtedness...................... 1^894*000 U. S. Treasury Notes................................................. 932000 Other bonds, stocks and securities.........................7...* 67,871^000 Total loans, discounts and investments (including bills redisyunted with F. R. Bank)......................... .........$550,190,000 Reserve Balance with F. R. Bank...................................... 39347000 8[233[000 Cash in vault.......................................... .............................. Net demand deposits on which reserve is computed....... 284 949 000 Time deposits................................................................... 144 480 000 Government deposits................................................ ........... 8*862 000 8,862,000 June 8,1921 37 July 9,1920 35 $ 20,780,000 117.847.000 312.872.000 $ 36,482,000 127,107,000 $451,499,000 26,431,000 2.076.000 1.003.000 29,675,000 2.704.000 3.656.000 67^ 55^000 * $548,564,000 39,309,000 8,211,000 292.034.000 143.189.000 843,000 $610,528,000 40.064.000 10.565.000 321.099.000 125.623.000 1,204,000 D EBITS T O IN D IV ID U A L A C C O U N T S For four weeks ending: St. Louis Little Rock.. Evansville July 13,1921 ..$448,166,000 .. 92,395,000 .. 72,690,000 .. 33,862,000 .. 31,530,000 .. 22,819,000 8,411,000 June 15.1921 $490,240,000 93.671.000 75.750.000 33.628.000 34.296.000 19.719.000 10.140.000 8,458,000 Iu!v 14,1920 $585,045,000 142.105.000 114.431.000 37.838.000 21.957.000 F E D E R A L R E SE R V E O P E R A T IO N S c r e a s ^ ^ n n 7 s t i ^ " ' ' ^ " " ' e d $147,281,116 of paper for 323 member banks, which represents aniaJ ^ a * "? ""* discounted in May, and a gain of 2 in the number of banks accom ing month purchased m June amounted to $947,230, a decrease of $1,215,591 under the precw No c h M ^ h a s R csfl;'? Bank of St. Louis abolished its progressive discount MR* ^ c h a n g e has taken place m the norma! dtscount rates of this bank since the preceding issue of this f - (Compiled July 18,1921)
@FedFRASER