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FEDERAL RESERVE BANK OF ST. LOUIS MONTHLY REVIEW OF BUSINESS CONDITIONS IN EIGHTH DISTRICT Released for Publication On and After the Morning of December 31, 1928 WILLIAM McC. MARTIN Chairman of the Board and Federal Reserve Agent H IL E exhibiting some rather sharp con trasts, business as a whole in this district during the past thirty days continued the record of gradual improvement noted each month since last August. A particularly good showing was made in industry, with activities at a higher rate than a year ago, and many important lines exhibit ing less than the usual seasonal slowing down, and some recording actual gains. In the iron and steel industry, and through the metal working industries generally, activities were at an unusually high rate for this time of year. Through the south improve ment was general in the textile industry, many mills operating at full capacity. Building continued in relatively good volume, with outdoor operations be ing carried on later into the year than is ordinarily the case. Public demand for merchandise of ail sorts is still heavy, and while purchasing is conservative, there is a general disposition to fill requirements. W Interest centered chiefly in retail trade, and since the middle of N ovem ber there has been a dis tinct quickening in that section of distribution. Uni versally through the district, holiday business has been in large volume, in many instances exceeding expectations, and results of former years. W hile relatively the best results have been achieved in the large centers o f population, reports from the small towns and country indicate mainly satisfactory con ditions. W eather in the late fall and early winter has been unseasonably warm, which fact has mili tated against the movement of seasonal merchan dise, but despite this handicap the turnover of goods for ordinary consumption has been large. Mail order houses and five and ten cent stores reported gains in N ovem ber sales over a year ago, while an increase of 0.9 per cent was shown in department store sales. Harvesting and housing of late crops was ac complished under mainly favorable conditions, and latest returns indicate results equal to or somewhat better than earlier official estimates. The tobacco markets have opened, and heavy initial sales were effected at prices averaging substantially higher than last year or in 1926. Cotton has moved to mar ket rapidly and prices have been well sustained. There was a further decline in prices of hogs and hog products, but cattle and sheep values remained at the recent high levels. Reports relative to em ployment reflected considerable uneveness, but ac cording to the Employment Service of the Depart ment of Labor, conditions are mainly satisfactory. Debits to individual accounts in the principal cities in November declined 9.2 per cent as compared with October, but the total was 1.0 per cent greater than in November last year. Reversing conditions of the preceding thirty days, there was a general slowing down in the bi tuminous coal trade, accompanied by a downward trend in prices. Responding to lessened demand, occasioned by the protracted mild weather, produc tion declined in all fields of the district. Despite the smaller output, railroad sidings at mines in many instances were filled with loaded cars for which no orders had been received. Retailers in both the cities and country had heavy stocks, and were not inter ested in additional tonnage, even when offered at cheaper prices. Deliveries to householders were considerably below the average at this time of year. Tonnage moved in the Illinois fields in November was am ong the smallest for that particular month in many years, and little improvement was noted during the first half o f December. Demand for steaming coal was relatively better than in the case of heating varieties. Screenings in the Kentucky field were firm, due, however, more to scarcity than urgency of demand. Operating time at western Ken tucky mines was lower than the average for this season. The close of navigation on the Great Lakes added another depressing factor to the situation. Demand for metallurgical coke was active, but the domestic coke situation was adversely affected by the warm weather. Production of bituminous coal for the country as a whole to December 8, approxi mately 289 working days, totaled 462,084,000 tons, against 490,060,000 tons for the corresponding period in 1927, and 535,553,000 tons in 1926. According to officials of railroads operating in this district, freight traffic continues at the high levels of recent months. In the case of two of the largest trunk lines, November loadings were the heaviest on record for that month. The movement of coal, forest products and grain were particularly heavy, and the merchandise and miscellaneous freight classifications continue to make a good show ing. For the entire country, loadings of revenue freight for the first 48 weeks this year, or to Decem ber 1, totaled 48,062,739 cars, against 48,379,016 cars for the same period in 1927 and 49,659,647 cars in 1926. The St. Louis Terminal Railway Asso ciation, which handles interchanges for 28 connect ing lines, interchanged 196,502 loads in November, against 243,119 loads in October, and 196,502 loads in November, 1927. During the first nine days of December the interchange amounted to 62,935 loads, against 66,792 loads during the corresponding period in November, and 59,245 loads during the first nine days of December, 1927. Passenger traffic of the reporting lines decreased 10 per cent in November as compared with the same month last year. Esti mated tonnage of the Federal Barge Line between New Orleans and St. Louis in November was 147,400 tons, the largest on record for any single month but one, and comparing with 120,444 tons in October and 114,063 tons in November, 1926. Reports relative to collections during the past thirty days reflect generally satisfactory conditions. Through the cotton areas, liquidation has been par ticularly good, both with merchants and at country banks. In sections affected by the recent floods backwardness in payments was complained of, and in some sections communications were interfered with by the condition of dirt roads, due to heavy rains. Wholesalers reported November 1 settle ments well up to expectations, and fully equal to those at the same time last year. In the large cen ters retail merchants report the average of collec tions good. Reports from country retailers reflect somewhat irregular results. Questionnaires ad dressed to representative interests in the several lines through the district showed the following re sults : Excellent . Good November, 1928............1.4% October, 1928._______ 2 .5 November, 1927.--------- 1.4 34.2% 37.8 29.7 Fair $ 2 lfo 50.7 59.5 Poor 12.3 % 9.0 9.4 Commercial failures in the Eighth Federal Re serve District in November, according to Dun’s, numbered 125, involving liabilities of $5,740,158, against 93 defaults in October with liabilities of $1,074,591, and 93 failures for $3,476,584 in Novem ber, 1927. The per capita circulation of the United States on November 30, 1928, was $41.93, against $40.45 on October 31,1928, and $42.13. on November 30, 1927. M ANU FACTURING A N D W H O L E S A L E Automobiles — Combined passenger car and truck production in the United States during November totaled 256,936, which compares with 398,818 in October, and 134,416 in November, 1927. Sales of automobiles in this district showed con tinued expansion over the corresponding period in 1927, and contrary to the seasonal trend during the past four or five years, there was an increase in November sales over the October total. Since the first of December, business has continued active, with dealers reporting an unusually large number of orders and inquiries for delivery at Christmas. The demand is fairly well balanced, extending through all classes of makes, but as has been the case for the past several months, the largest increase was recorded in the cheap-priced category. Replace ment buying in the rural sections was on a more liberal scale than heretofore, this being particularly so through the south. Dealers in the large cities handling the more expensive makes report that in quiries and prospects have been good, but there is a general disposition to await new models to be ex hibited in the annual shows in February and March before making commitments. Business in parts and accessories continued active during the period, with total sales showing fair gains over a year ago. Part of the increase is ascribed to natural growth, due to the greater number of cars in use, but in many in stances the satisfactory results are due to intensive selling campaigns. Sales of new passenger cars in November, by 320 dealers scattered through the dis trict were 16.7 per cent larger than in October, and 91.7 per cent in excess of the November, 1927, total. Stocks of new cars on hand on December 1 were 8 2 per cent larger than thirty days earlier, and 12.4 per cent greater than on December 1,1928. The used car situation developed no marked change as com pared with the preceding thirty days. The move ment is fairly satisfactory, and stocks are mainly of seasonal proportions. On December 1 the number of salable used cars on hand was 4.3 per cent and 6 2 per cent larger, respectively, than thirty days and a year earlier. The value represented in these second hand vehicles was substantially less this year than last. Many old passenger cars are being permanent ly retired and dismantled by organizations of dealers in the large cities. In St. Louis upwards of 1,600 vehicles have been bought for that purpose during the past three months at an average price of $21. Assessory sales o f the reporting dealers in N ovem ber were 0.2 per cent larger than in October, and 6.4 per cent greater than in November, 1927. A c cording to dealers reporting on that item, 54.3 per cent of their total sales were on the deferred pay ment plan, which compares with 57.6 per cent in October, and 48.3 per cent in Novem ber, 1927. Boots and Shoes — Novem ber sales of the 5 reporting interests were 9.0 per cent smaller than for the same month in 1927, and 1.0 per cent below the O ctober total this year. Stocks on December 1 were 10.4 per cent greater than on the same date in 1927, and 2.3 per cent in excess o f those on N ovem ber 1 this year. Manufacturers and jobbers were chiefly concerned with shipments, it being a between season period, with salesmen for the m ost part in from their territories. A s compared with the pre ceding thirty days, there was a moderate decrease in manufacturing activity, though the rate was above the average of the past five years. Sales of overshoes w ere in satisfactory volume, and heavy lines of men’s shoes were m oving in somewhat bet ter volume than heretofore. There was n o change in prices w orthy o f note, either in raw materials or finished goods. Clothing — Considerable improvement devel oped in distribution of winter apparel as compared with the preceding thirty days, though the relatively high temperatures caused business in these lines to fall below expectations. Due to the recent curtailed production, however, stocks of both wholesalers and retailers are o f moderate proportions. Sales of work clothing showed improvement over a year ago, with business in the south especially satisfactory. Pur chasing of the general line o f children's clothing and w om en’s suits for spring has been in good volume, with prices show ing little variation from a year ago. N ovem ber sales o f the reporting clothiers were 5.9 per cent larger than for the same month in 1927, and 92.8 per cent greater than in O ctober this year. Drugs and Chemicals — Sales of the five report ing interests in N ovem ber were 3.9 per cent less than for the same month in 1927, and 3.5 per cent below the O ctober total this year. Stocks on D e cember 1 were unchanged as compared with a month earlier, and 4.4 per cent smaller than on D e cember 1, 1927. Prevalence of influenza through the district caused unusually heavy sales of remedial drugs, and demand for sundries and holiday goods was well up to expectations. Sales o f toilet prepara tions and cosm etics w ere especially large. Some slow ing down in purchasing o f heavy drugs and chemicals by the general manufacturing trade was noted. Dry Goods — Due mainly to smaller advance business, Novem ber sales of the 7 reporting firms were 2.6 per cent smaller than for the same month last year, and 10.3 per cent below the October total this year. Stocks on Decem ber 1 were larger by 6.3 per cent and 18.7 per cent than thirty days and a year earlier. Pre-inventory sales held by several important stores met with good response and ac counted for the movement of a large volume of goods. Purchasing of cotton goods was quieter, be ing affected by uncertainty relative to the staple cotton market. Generally prices showed no notable change as contrasted with the preceding thirty days. Electrical Supplies — Business in this classifica tion was active, with virtually all the principal lines selling well. Novem ber sales of the reporting inter ests were 50.4 per cent larger than for the corres ponding period in 1927 and 2.7 per cent under the O ctober total this year. Stocks on December 1 were 4.0 per cent larger than thirty days earlier, and 15.4 per cent less than on December 1, 1927. Purchasing of radio goods was in large volume, and the move ment of holiday merchandise was the heaviest on record. Demand for small motors continues at the high levels of recent months. Flour — Production at the 12 leading mills of the district in N ovember totaled 363,316 barrels, against 436,365 barrels in O ctober and 342,510 bar rels in November, 1927. Business throughout the period was very dull, both in point of new buying and specifications on flour previously purchased. Purchasing by the domestic trade was on a hand-tomouth basis, car lot orders being unusually scarce. Export business was light, and confined principally to routine transactions with the Latin-American countries. Bids from Europe were still too far out of line to result in substantial workings. Prices, however, were steady. Mill operations were at from 48 to 52 per cent of capacity. Furniture — November sales of the thirteen re porting interests were 1.3 per cent larger than for the same month in 1927, and 35.8 per cent below the O ctober total this year. Stocks on December 1 were 22.7 per cent larger than on the same date in 1927, and 7.3 per cent smaller than on November 1 this year. Demand for radio cabinets and the general run of holiday goods was brisk, but quietness was complained of in the more staple lines, notably bed room furniture. Some improvement took place in sales of office furniture and equipment. Advance orders were slightly larger than at the correspond ing period last year, but buying generally is on an immediate necessity basis. Groceries — A slight recession in business in this line was noted, November sales of the 13 report ing interests showing a decrease of 1.1 per cent un der the same month in 1927, and of 8.1 per cent under the October total this year. Stocks on Decem ber 1 were 1.1 per cent less than on November 1, and 22.2 per cent larger than on December 1, 1927. Results in the large cities were relatively better than in the country, due partly to unfavorable weather conditions which prevented salesmen com pleting their rounds. Buying of holiday goods was well up to expectations, and in the case of several important firms, the largest on record. The move ment of certain staple goods was disappointing, and generally keen competition is narrowing profit margins. Hardware — Demand for holiday goods was re ported satisfactory throughout the district, with some jobbers receiving a large volume of reorders in late November and early this month. Purchasing of the staple lines of shelf hardware was active, but confined chiefly to immediate requirements. Toy sales were the largest in several years, and there was also a heavy movement of sporting goods. Hand implements, notably wood cutting tools, and other goods for consumption in the country contin ue in good demand. Prices were steady, with an advancing tendency on several groups of commodi ties. Less than the usual seasonal recession in the call for builders’ hardware and tools was in evidence. November sales of the 12 reporting firms were 2.3 per cent smaller than for the same month in 1927, and 8.9 per cent below the October total this year. Stocks on December 1 were 0.3 per cent and 10.9 per cent larger, respectively, than thirty days and a year earlier. Iron and Steel Products — November proved one of the best months this year in the iron and steel industry, and in the first half of December less than the usual slackening in demand was apparent. The total of tonnage placed was bolstered by heavier ordering of equipment by the railroads and pros pects for additional freight and passenger car let tings in the near future. Winter construction pro grams have accounted for liberal quantities of fer rous building materials, and the open winter to date has permitted of almost uninterrupted outdoor oper ations. Purchasing by the oil and coal industries was somewhat better than heretofore, while the out let through the general manufacturing trade has held up beyond expectations. Distributors of iron and steel goods from warehouses report a satisfac tory movement of a broad assortment of commodi ties. Specifications have been good, and new orders placed somewhat larger than the average at this season during the past several years. Manufactur ers and distributors of sheets have experienced a continued good call for their wares. The leading sheet producer of the district was operating at full time on all units, and will continue at that rate for the next six weeks. There was the usual seasonal recession in demand for tin plate, and the general line of plates was relatively quiet. Generally the demand for wire and wire goods was active, with fencing material being heavily taken throughout the south and in the grain areas. Tubular goods were irregular, and less active than during the preceding thirty days. Specialty makers, notably of stoves, farm implements and machinery, report heavy shipments in November. Demands from the automotive in dustry fell off as compared with the two preceding months, but were substantially in excess of the cor responding period in 1927. Prices showed no nota ble change from the month before, either in raw or finished materials. Purchasing of pig iron was in heavy volume, with many leading users covering their full first quarter of 1929 requirements. The only change in pig iron prices during the period was an advance of fifty cents per ton by southern pro ducers. The leading pig iron producer of the dis trict blew in its idle stack on December 11 in order to accommodate increased demand. For the country as a whole, production of pig iron in November de creased slightly under the preceding month, the total of 3,303,680 tons comparing with 3,373,539 tons in October, and 2,661,863 tons in November, 1927. The decrease under October was due to one less day in November than the month before, and the November average daily rate was the third largest in history for that particular month. Out put of steel ingots in the United States in November totaled 4,259,380 tons, against 4,647,891 tons in Oc tober and 3,127,015 tons in November, 1927. R E T A IL T R A D E The condition of retail trade is reflected in the following comparative statement showing activity at department stores in leading cities of the district: N et sales com parison Stocks on hand Stock turnover N o v . 1928 11 M onths ending N ov. 30, 1928 Jan. 1, to com p, to N o v . 30, 1928 to com p, to N ov. 30, N o v . 1927 same period 1927 N o v . 30, 1927 1928 1927 + 7.5% + 2 .4 % ' 2.24 2.06 Evansville ........+ 3 5 .3 % ' L ittle R o c k ......+ 1.4 + 2.1 — 3.9 2.16 2.24 Lom sviUe ........ + 0.7 — 4.2 — 9.3 2.85 2.94 M em phis .......... + 0.2 + 4.8 — 12.0 2.92 2.58 Q u in cy .............+ 8.0 + 1 0 .9 — 0.8 2.34 2.01 St. L ou is......... . 3.2 + 0.4 — 6.2 3.34 3.06 Springfield, M o.— 5.0 — 1.1 — 3.1 1.52 1.46 8th D istrict...... 1.3 + 0.9 — 7.1 3.04 2.84 N et sales com parison Stocks on hand ^ o v . 1928 com p, to N ov. 1928 com p, to N o v . 1927' O ct. 1928 N o v . 1927 O ct; 1928 M en ’s furnishings............ — 0 .7 % + 1 8 .9 % — 3.4% + 6.6% B oots and shoes.................— 1.8 — 7.5 + 1.6 + 2.7 Department Store Sales by Departments — As reported by the principal department stores in Little Rock, Louisville, Memphis, and St. Louis. Percentage increase or decrease N ov. 1928 com pared to N ov. 1927 N et sales Stocks on hand for m onth at end of month — 13.29 P iece g ood s .............................................— 20.3 — 7.1 Ready-to-w ear accessories.................— 3.6 + 2 4 .4 W o m en and misses* ready-to-w ear-j- 3.1 — 5.8 M en’s and boys' w ear..........................— 6.2 — 9.3 H om e furnishings................................ — 10.6 C O N S U M P T IO N O F E L E C T R IC IT Y Public utilities companies in the five largest cities of the district reported consumption of elec tric current by selected industrial customers during N ovem ber as being 6.9 per cent less than in October, and 8.0 per cent greater than in November, 1927. T he loss in the month-to-m onth comparison is due in part to the closing dow n o f a large cement plant in St. Louis. Detailed figures fo llo w : O ct. N o. o f N ov. 1928 Custom1928 ♦ K .W .H . * K .W .H . ers 1,274 1,357 Evansville ... 40 1.982 1,894 L ittle R ock.. 35 6,831 6,220 L ouisville .... 82 1,884 M em phis ..... 31 1.983 18,515 16,924 St. L ouis......l30 T otals.__ 318 28,383 * I n thousands (000 om itted ). N ov. 1928 com p, to N ov. 1927 + 2 2 .9 % + 4 5 .1 + 15.0 + 7.8 N ov. N ov. 1928 com p, to 1927 O ct. 1928 * K .W .H . 1,036 — 6.2 % 1,366 + 4.6 5,405 —- 9.0 1,839 + 5.2 — 9.6 16,633 30,481 — 6.9 + 1-7 26,279 + 8.0 The follow ing figures compiled by the Depart ment o f the Interior show kilowatt production for lighting and industrial purposes for the country as a whole : B y water pow er O ctober, 1928.................... ...2,876,316,000 Septem ber, 1928...................2,784,928,000 O ctob er, 1927....................... 2,375,527,000 B y fuels 5,024,583,000 4,484,960,000 4,528,735,000 T otals 7,900,899,0^0 7,269,888,000 6,904,262,000 B U IL D IN G T he dollar value of building permits issued for new construction in the five largest cities o f the dis trict in Novem ber showed an increase of 16.5 per cent over O ctober, and a decrease o f 9.0 per cent under November, 1927. A ccordin g to statistics com piled by the F. W . D odge Corporation, contracts let in the Eighth Federal Reserve District in N ovem ber amounted to $27,301,820 against $32,408,584 in O ctober and $27,793,287 in November, 1927. A slight decrease in the cost of building was noted, caused by the accumulative effect o f several slight reductions in the price of building materials. P ro duction of portland cement for the country as a whole in N ovem ber totaled 15,068,000 barrels, against 17,533,000 barrels in O ctober, and 14,449,000 barrels in Novem ber, 1927. Building figures for Novem ber fo llo w : Evansville .. L ittle R ock L ouisville .. M em phis ... St. Louis.... N ew C onstruction *C ost Perm its 1927 1928 1927 1928 351 *5 19 i 368 $ 273 54 52 343 162 168 166 1,395 2,122 322 195 2,139 330 4,502 534 555 2,497 Repairs, etc. * to s t Perm its ......... 1927 1928 1928 1927 | 29 $72 — 56 56 102 108 362 36 104 50 37 88 69 102 21 66 278 1,027 271 1,353 ~555 1,330 N ov. totals 1,429 1,487 $6,742 $7,389 O ct. totals 2,063 1,576 6,093 3,762 603 1,415 Sept. totals 1,739 1,502 5,790854 6,253 873 *In thousands o f dollars (000 om itted ). $ 771 $1,571 533 1,947 960 571 AGRICULTURE Weather conditions during the past thirty days were variable, but generally favorable for agricul tural operations. In some sections excessive rains prevented farmers from entering their fields, but taken as a whole farm work has progressed well, and is somewhat ahead of the corresponding period a year ago or in 1926. The movement of agricultur al products to market has been on a large scale. This is true particularly of cereals and live stock. Prices of wheat and corn fluctuated over a relative ly narrow range, and developed no marked changes as contrasted with the preceding thirty days. Cot ton has moved rapidly from producers to the gins, with the general movement somewhat earlier than the average of the past several years. T obacco mar kets opened with liberal offerings in most cases, and prices obtained have been universally satisfac tory, averaging higher than a year or tw o years ago. There has been a good marketing movement of oats, barley and rye from farms to interior loading sta tions and from country elevators to terminal markets. W inter W heat — In the principal producing areas of the district, the condition of the winter wheat crop is reported generally satisfactory. Good growth was attained in October, and recent rains have further assisted development. M ost recent re ports indicate that seeding has been entirely com pleted, and indications point to a slightly smaller acreage than planted last fall. Hession fly infesta tion is light, and confined to scattering localities. For the country as a whole an area of 43,228,000 acres of winter wheat sown this fall is estimated by the Crop Reporting Board of the United States D e partment of Agriculture, based upon reports and data furnished by crop correspondents, field statis ticians, and cooperating State Boards (or Depart ments) of Agriculture and Agricultural Colleges. This sown area is 8.6 per cent less than the revised estimate of 47,280,000 acres sown in the fall of 1927. The sowings in the fall o f 1926 were 43,373,000 acres (revised). The abandonment in 1928 was 23.5 per cent of the acreage sown to winter w heat; in 1927 13.0 per cent, and average for the ten years 19181927 was 10.8 per cent. Condition of winter wheat on Decem ber 1, 1928 was 84.4 per cent compared with 86.0 and 81.8 on December 1, 1927 and 1926 respectively, and a tenyear average of 84.6 per cent. Corn — Save where delayed by rains, husking of corn has made good progress, and cribbing is being pushed forward rapidly throughout the dis trict. Latest husking returns seem to carry out ear lier official estimates of total yields. The quality of grain arriving at primary markets averages good, with moisture content mainly light. In the imme diate past a considerable quantity of high grade corn has been received, much grading No. 1. In Illi nois, Missouri and Indiana an unusually large amount of corn is being fed to live stock on farms. Demand for feeding purposes is good, and in the surplus areas shipments from farms have been large. Fruits and Vegetables — Harvesting of the white potatoe crop has been completed, but due to the low prices prevailing the movement has been restricted. In some sections farmers did not dig all of their crops, and a large quantity of inferior grade potatoes were not shipped to market. The sweet potatoe crop is turning out about as indicated in the Government estimate and marketing has pro gressed under generally favorable conditions. Live Stock — Favorable weather throughout the autumn and early winter has proved beneficial to live stock. Less than the usual number of com plaints of disease have been received, and generally herds are entering the cold weather in healthy con dition. Pastures were benefited by the abundant moisture and low temperatures, and farmers have been able to carry their stock with relatively little prepared feed. There was a further decline in hog prices, the lowest levels of the year being recorded in early December. Cattle and sheep values were relatively well sustained. Generally favorable condi tions prevailed in the poultry and dairying indus tries, with steady expansion in the latter being noted in the south. Receipts and shipments at St. Louis as reported by the National Stock Yards, were as follows: R eceipts N ov . O ct. N ov. 1928 1928 1927 Cattle and calves........104,292* 162,218 130,862 H o g s ........................... 359,455 353,864 281,578 H orses and m ules...... 5,856 4,161 7,891 Sheep ............................ 24,272 55,398 35,211 Shipments N ov. O ct. N ov. 1928 1928 1927 57,373 110,602' 84,341 277,616 250,326 190,289 4,768 4,773 8,533 9,514 32,610 17,640 Cotton — According to the U. S. Department of Agriculture’s November 1 report, prospects for cot ton in states wholly or partly within this district underwent some improvement from November to December. Total yield in Arkansas, Mississippi, Missouri and Tennessee is estimated at 3,251,(XX) bales,against 3,103,000 on November 1, and 2,829,000 bales in 1927. Weather conditions were mixed, but on the whole harvesting was accomplished under favorable auspices. Some lowering of grade and field losses resulted from rains in November, but these were no greater than average, and only a small amount of cotton still remains in the fields. The movement to market continued heavy, stocks in Arkansas warehouses totaling 332,778 bales on December 7 against 338,292 bales on the corres ponding date in 1927. Prices fluctuated in a narrow range, and showed little change from the preceding thirty days or the same period a yesy* ago. Rice — Harvesting of the crop was virtually completed on December 1, it being estimated that less than 5 per cent remained in the fields on that date. Excessive rainfall during November impaired the milling quality of much rice and caused some re duction in quantity. Values were well sustained on all qualities through November, though the average was below that of a year ago. Sales during Novem ber and early December were in about the usual volume, with demand both for domestic consump tion and export, fair. Tobacco — Loose leaf markets throughout the burley districts opened in the week of December 8, and prices were in excess of expectations and aver aged considerably higher than at the opening last year or in 1926. The crop contains some as fine bright tobacco as has appeared in years, but there is also some as common leaf as could be found any year. A large portion of the crop is small in length but generally clean. Average sales were slightly above $30 per 100 pounds. The aircured and green river loose leaf markets had some large sales, with prices high, manufacturing leaf selling as high as $33. Markets in the western fired district of Murray, Mayfield and Paducah, Ky. also opened with heavy offerings, but very good prices, the average being $2 to $2.50 better than last year. Conditions in the Clarksville and Springfield markets, which held their initial sales, were similar to those existing in the western district. Buyers are numerous and de mand brisk for all grades. Prices of old burley were higher than at any time this season, and there is less old stock unsold at this time than has been the case in more than a decade. Commodity Prices — Range of prices in the St. Louis market between November 15, 1928 and De cember 15,1928, with closing quotations on the latter date and on December 15, 1927. W heat Close H igh L ow D ec. 15,1928 D ec. 15,1927 bu.$ 1.1854 $1.1454 I l l 'l l " " $1.2854 1 .2 5 # 1.21 1.30 f t 1.2194 1.2454 1.21J* 1.21H 1.51 1.38 $1.38 @ 1 .4 3 T ’4 4 * 1.24 1.16 1.17 @ 1.1854 1.32@ 1.33 ..per ... " ... " N . 2 red winter.. " N o. 2 hard....... ... “ Corn ... " .8 7 * ... " .9 3 ^ N o. 2 m ixed..... ... “ .87 N o. 2 w hite..... ... “ .92 Oats N o. 2 white......... “ .5154 F lour Soft patent...... ..per bbl. 7.25 Spring patent... ... “ 5.95 M iddling cotton... .per lb. .19J4 H ogs on h oof....... .per cw t. 9.30 .8 3H .89 H .81 .82 .84 H .9354 .83 @ .84 .8 5 5 4® .86 .4754 .48 6.50 5.75 .1854 6.25 6.50 5.75 7.60 @ .4854 @ 7 .25 @ 5 .9 0 .19 @ 8 .8 0 .8454 .92 H .85 .86 .57 6.50@ 7.25 6.50 @ 6 .6 0 .19 7.35@ 8.65 FIN AN C IA L Routine seasonal factors were the chief influ ences in the banking and financial situation in this district during the past thirty days, with nothing developing to change the trends noted a month earlier. Demand for funds continued active and diversified, certain banks reporting a somewhat bet ter inquiry than in the preceding month. With of ferings generally less free than heretofore, rates were maintained at the highest point attained this year, or, in fact, during the past five or six years. Liquidation among major mercantile and manufac turing interests in the principal cities was in large volume, reflecting generally good collections, and there were also heavy payments of agricultural loans, notably in the typical cotton areas. New bor rowings and renewals, however, were also on a liberal scale, so that loanable resources of the com mercial banks were kept well employed. Markets in all the tobacco districts opened, with sales heavy and average prices high, but it is still too early for proceeds of these sales to materially affect the financial situation in that region. Similar conditions obtained in sections where rice is the principal crop, save that prices were below those of last year. Demands of grain handlers and flour mill ers increased in somewhat more than the seasonal amount, being augmented by rather heavy invento ries carried by the milling interests, and to an ex tensive movement of corn in the surplus areas. As has been the case all fall, the cattle industry is em ploying a considerable volume of credit, reflecting in part high market values. Requirements of pack ers and other manufacturers of food products con tinued at the recent high levels. Loans of the reporting member banks decreased in late November, but regained part of the loss later, and on December 12 were at about the same level as in the first week of October. Deposits of these banks increased in early December to the highest point since the middle of May. Loans of this bank to its member banks decreased steadily and at the middle of December were at approximately the same level as in late May. Responding to the usual seasonal call for currency for holiday purposes, the note cir culation of this bank increased in late November and early December to the highest point of the year. A t the St. Louis banks current rates were as fol lows: Prime commercial paper, S y 2 to 6 per cent; collateral loans, 5y 2 to 6 l/ 2 per cent; loans secured by warehouse receipts, 5y 2 to 6 per cent; interbank loans, S y 2 to 6 per cent and cattle loans, 5^4 to 6 T/ 2 per cent. Federal Reserve Operations— During November the Federal Reserve Bank of St. Louis discounted for 201 member banks, against 217 in October and 121 in November, 1927. The discount rate remained unchanged at 5 per cent. Changes in the principal assets and liabilities of the institution as compared with the preceding month and a year ago appear in the following table: ♦Dec. 21, ♦Nov. 21, ♦Dec. 21, 1927 1928 1928 $2i,&31 $4l,l&l 9,699 4,569 ... 11,647 38,163 21,216 Bills discount Bills bought.... U. S. Securiti Total bills and securities... F. R. Notes in circulation... Total deposits........................... Ratio of reserve to deposits and F. R. Note Liability ♦In thousands (000 omitted). ...$77,958 ... 65,637 ... 86,287 $72,096 60,762 83,496 $65,563 57,300 85,093 53.7% 57.4% 58.2% Debits to Individual Accounts — The following table gives the total debits charged by banks to checking accounts, savings accounts, certificates of deposit accounts and trust accounts of individuals, firms, corporations and U. S. Government in lead ing cities of the district. Charges to accounts of banks are not included. ♦Nov. 1928 East St. Louis & Natl. Stock Yards, 111..$ 68,035 El Dorado, Ark..... 7,438 Evansville, Ind..... 45,818 Fort Smith, Ark... 14,792 Greenville, Miss.... 6,344 Helena, Ark.......... 5,335 Little Rock, Ark.. 94,289 Louisville, Ky.— 199,990 Memphis, Tenn.... 198,846 Owensboro, Ky..... 5,936 Pine Bluff, Ark..... 16,999 Q uincy, 111.............. 12,689 St. Louis, Mo........ 756,560 Sedalia, Mo.------4,299 Springfield, Mo.... 15,389 ♦♦Texarkana, Ark.-Tex............ 15,961 ♦Oct. 1928 ♦Nov. 1927 $ 78,139 9,711 47,478 19,371 6,517 5,657 108,403 210,256 211,147 5,797 17,753 13,843 842,350 4,748 17,398 $ 51,820 9,269 46,601 15,492 4,197 6,464 101,055 184,614 200,443 5,167 17,130 13,073 761,467 4,335 15,200 18,215 18,230 Nov. 1928 comp, to Oct. 1928 Nov. 1927 —12.9% —23.4 — 3.5 —23.6 —' 2.7 — 5.7 —13.0 — 4.9 — 5.8 + 2.4 — 4.2 — 8.3 — 10.2 — 9.5 —11.5 —12.4 +31.3% —19.8 — 1.7 — 4.5 +51.2 —17.5 — 6.7 + 8.3 — 0.8 — 0.8 +14.9 — 2.9 — — 0.6 0.8 + 1.2 —12.4 Totals_____ $1,468,720 $1,616,783 $1,454,557 — 9.2 + 1.0 ♦In thousands (000 omitted). ♦♦Includes one bank in Texarkana, Texas not in Eighth District. Condition of Banks — Loans and discounts of the reporting member banks on December 19, showed an increase of 2.0 per cent as contrasted with November 21 and a decrease of 2.0 per cent as com pared with December 21, 1927. Deposits increased 2.6 per cent between November 21 and December 19 and on the latter date were 4.1 per cent smaller than on December 21,1927. Composite statement follows: ♦Dec. 19, #Nov. 21, #Dec. 21, 1928 1927 1928 t29 31 Loans and discounts (incl. rediscounts) Secured by U. S. Govt, obligations... ....$ 4,061 $ 4,018 $ 4,233 .... 212,186 212,419 213,619 .... 299,621 289,213 308,812 Total loans and Investments Total investments........... Reserve balance with F. R. Cash in vault............... ... Deposits Net demand deposits..., Time deposits.............. ,..$515,868 $505,650 $526,664 75,540 129,616 ,... 45,984 ... 9,979 ... 409,233 78,417 130,409 $205,156 $208,826 49,270 46,687 9,870 7,916 389,901 238,069 1,999 430,393 240,065 3,626 Total deposits............................................. ...$646,584 ..$646,584 $629,969 $674,084 Bills payable and rediscounts with Federal Reserve Bank, 16,118 13,635 ... 16,556 13,049 1,514 ♦In thousands (000 omitted). tDecrease due to consolidation. These 29 banks are located in St. Louis, Louisville, Memphis, Little Rock, and Evansville, and their total resources, comprise approximately 55.5 per cent of all member banks in this district. (Compiled December 20, 1928) BUSINESS CONDITIONS IN T H E U N ITE D STATES PRODUCTION — Total output of manufacturers was somewhat lower in November, reflecting primarily a de crease in production of automobiles and steel, larger than is usual at this season, but total output continued larger than a year ago. Production of pig iron and copper con tinued to increase in November, textile mills remained ac tive, and meat packing increased, while sugar refining de clined seasonally during the month and the production of building materials was smaller. Factory employment and payrolls were seasonally reduced but were larger than in 1927. Mineral production was in about the same volume as in October, according to the Federal Reserve Board’s index which makes allowance for seasonal variations. Increases occurred in the daily average production of copper, zinc, In d ex numbers of production of manufactures and minerals, adjusted for seasonal variations (1923-25 average = 1 0 0 ) . Latest figures, N ovem b er: M anufactures, 111; Minerals, 114. tin and bituminous coal, while anthracite coal decreased and the output of petroleum was smaller. The value of building contracts awarded in November and the early part of December receded sharply from the record figures of the two preceding months. The Novem ber total was slightly larger than in the corresponding month in 1927, and the volume of contracts for the first two weeks of December was smaller than a year ago. The December forecast of the Department of Agriculture in creased the estimated 1928 production of cotton by 240,000 bales to a total of 14,373,000 bales, which is nearly 11 per cent larger than a year ago. The total value of crops, based pecially marked in loadings of miscellaneous freight. PRICES — Wholesale commodity prices decreased further in November and the first two weeks of December. The largest price declines during the six week period, were in farm and food products and leather, while several groups of industrial products, notably iron and steel, nonferrous metals and cotton goods were generally higher. W hole sale prices of gasoline and automobile tires declined. Among the agricultural products, prices of raw silk, corn, livestock, and meats were lower during November, while raw cotton and wool, wheat and oats increased somewhat. During the first two weeks of December, however, prices of all these products with the exception of raw silk, de clined. Building materials were generally higher in Novem- Index of U nited States Bureau of L abor Statistics (1 9 2 6 = 1 0 0 , base adopted b y bureau). Latest figure, N ovem ber, 96.7 ber but declined somewhat in the middle of December. BANK CREDIT — Loans and investments of mem ber banks in leading cities increased $329,000,000 during the four week period ending December 19. The advance dur ing the first two weeks reflected chiefly a rapid increase in security loans which include loans to brokers and dealers in securities. Subsequently, a sharp decline in loans on securities was more than offset by a rapid increase in all other loans and in holdings of investments. The increase in all other loans, which includes loans for commercial pur poses, was contrary to the usual movement at this season and carried the total to the highest figure in eight years. BILLTONS OF DOLLARS _________ 1 BILLIONS OF DOLLARS 1 RESERIVE BANK CREDIT 1iReserve Total I CreditBank* sfor Banks US.Secunties t Acceptance* . 192t (1923-25 a v e ra g e = 1 0 0 ). Latest figures, N ovem b e r: T otal 103; Miscellaneous, 106. on December farm prices is estimated at $8,456,052,000 as compared with $8,522,563,000 in 1927. TRAD E — Department store sales showed a seasonal increase in November when allowance is made for the num ber of business days, and approximated those of a year ago, while inventories continued smaller than in 1927. Sales at wholesale declined seasonally, but were larger than in the same month last year. Railroad freight shipments decreased in volume during November and the early part of December, but continued larger than in 1927. The decrease from October was es- 1925 1926 1927 1926 M onthly averages o f daily figures for 12 Federal Reserve banks. figures are averages of first 21 days in D ecem ber. Latest Seasonal growth in the demand for currency in November and December, together with increases in member bank reserve requirements, consequent upon an increase in their deposit, have been reflected in larger borrowings by the member banks from the reserve banks. This recent growth, following upon demand caused by the loss of gold in earlier months, has caried the total volume of reserve bank credit to the highest level in seven years. The rates on call and time loans on security collateral increased during the last week in November and the first part of December, while rates for commercial paper were generally steady. Rates on certain maturities of bankers' bills increased somewhat.
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