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BUSINESS CONDITIONS Monthly Review of Agriculture, Industry, Trade and Finance Released for Publication in Morning Papers of April 30, 1942 FEDERAL RESERVE BANK OF ST. LOUIS I C A U P IK L D A N D S H O O K PH O TO Chur c h i l l D o w n s — L o u i s v i l l e , K e n t u c k y W A R PRODUCTION FINANCING F OR the purpose of expediting war production, the President, on M arch 26, 1942, issued E x ecutive Order No. 9112 establishing a new pro cedure for financing war production contracts. U nder this order the W ar D epartm ent, the Navy D epart ment, and the M aritime Commission are authorized to guarantee loans, discounts, advances, or com m it ments made by the Federal Reserve Banks, the Reconstruction Finance Corporation, or other fi nancing institutions for the purpose of financing contractors, subcontractors, or others whose pro duction is deemed necessary, appropriate, or con venient for the prosecution of the war. The state ment released by the W hite House in connection with the Executive Order emphasized that the guar antees and loans to be made by the Government Departm ents would not be subject to peace-time credit rules but would be made by production men, wherever additional financing is essential for in creased production. The Federal Reserve Bank of St. Louis is author ized to act as agent of the W ar D epartm ent, Navy D epartm ent or M aritime Commission in carrying out the provisions of the Executive Order. It will be the purpose of this bank to cooperate in every way possible in the adm inistration of the program and the accom plishment of its objectives. To this end the bank has set up a W ar Finance Agency and invites all banks, member and nonmember, and all other financing institutions in the district to bring to its attention all cases, large or small, where extra ordinary financing seems required to enable any enterprises of which they have knowledge to pro duce for the w ar effort. Banks and other financing institutions are thus to be given the opportunity to employ their lendable funds in such financing, secured by such guarantees and safeguards as may be necessary and appropriate to any particular case. W here a guarantee is con sidered necessary by the financing institution and is authorized, the fee charged for such guarantee will be a percentage of the rate of interest or discount charged, and will vary according to the size of loan and the portion of it covered by the guarantee. SUM M ARY O F E IG H T H D IS T R IC T Conversion of industrial facilities to war m anu as m easured by dollar value of perm its granted, in creased 96 per cent over the total for February but facture continues to dom inate the industrial scene was. 23 per cent below a year ago. Value of con in the Eighth D istrict as in the U nited States. In dicative of the rapid acceleration of the war effort, struction contracts awarded in the Eighth D istrict in March was 32 per cent above February, but 19 Treasury outlays for war purposes in March totaled per cent below March, 1941. A substantial portion $2,800,000,000. On a daily average basis this sum of the increase from a m onth ago represents low represents a 15 per cent increase over the February cost housing projects in w ar production centers and outlay and a 33 per cent gain over January expendi plant facilities for war production. tures. The volume of departm ent store trade in the The seasonally adjusted index of industrial pro E ighth D istrict in March showed a sizable gain duction prepared by the Board of Governors of the from the February total and was well above the Federal Reserve System remained at 172 per cent level of M arch, 1941. Increases over February of the 1935-1939 average in March. A year ago the ranged down from 54 per cent in Evansville, to 26 index was at 147. Perhaps more significant in m eas per cent in Memphis. Sales of all reporting stores uring actual volume of production was the rise of in the district were 35 per cent greater in March the unadjusted index from 166 to 168. The index for than in F ebruary and 26 per cent above March, 1941. durable m anufactures in March registered a gain of For the first week in April ending w ith Easter, sales six points over the February level, reflecting en of reporting stores continued to gain, but have since tirely heightened w ar production. It is anticipated showed some decline although buying continues at that virtually all production of consumers durable high levels. goods requiring critical metals will be halted within Sales in M arch of all wholesalers in the Eighth the next three m onths, and that plants now produc D istrict whose statistics are available to this bank ing such items will be converted to producing goods increased 7 per cent over February and were 33 per either for war or for essential civilian requirem ents. cent above a year ago. W holesalers’stocks decreased The March level of the index for non-durables was 3 per cent during the month but on M arch 31 were unchanged from the February figure. 20 per cent above those of the corresponding date last year. Building activity in the Eighth D istrict in March, Page 2 D ET A I LE D SU R VE Y OF DISTR ICT IR O N A N D S T E E L The rate of ingot operations in the St. Louis area during late M arch and early April was at an ap preciably higher level than during the preceding m onthly period. As of mid-April the rate of opera tions was at 85.2 per cent of capacity, which com pares w ith 98 per cent a year earlier. A t the end of M arch operations were at 93.2 per cent. The scrap situation has eased som ew hat in this area as w arm er w eather has facilitated the collection and processing of scrap. Mills and foundries still find it difficult to build up adequate backlogs of scrap, but supplies are greater now than at any time in the past three m onths. A nother blast furnace is being rehabilitated and construction of 49 coke ovens is underw ay at Granite City, Illinois. Production of pig iron should begin at the new furnace w ithin three months. Its ca pacity will be approxim ately 500 tons per day. W ith this furnace in production the supply of hot metal for the Granite City mills and foundries should further alleviate the th reat of scrap shortages. T ests have been made on iron ore from the southern M issouri region and it is hoped th at it will prove possible to open up this region again for com m ercial m ining of iron ore. Demand for all steel products continues strong. Demand for plates is easing som ew hat as more plate tonnage is being turned out by strip mills and as orders wTith low priority ratings are cancelled. T here is heavy demand for bars, sheets and strip. Steel ingot production in the U nited States reached another new peak in M arch w ith 7,392,911 tons be ing produced, which compares w ith 6,521,056 tons produced in F ebruary and 7,124,003 tons produced in M arch, 1941. O utput during the first quarter of 1942 was 4 per cent above th at of the corresponding quarter of 1941. W H IS K E Y On M arch 31, 56 of the 59 distilleries in K entucky were in operation, two more than at the close of the preceding month. This represents a new high in num ber of distilleries in operation since repeal of the E ighteenth Am endm ent. M ost distilleries are producing at near-capacity levels, due in part to anticipation of future conversion to production of industrial alcohol. A recent request th at all dis tilleries in Jefferson County produce only high wines, which are distillates of high alcohol content, for a four-day period was an indication of coming conversion. This product is to be shipped to another plant for processing into alcohol suitable for the m anufacture of smokeless powder. Dem and for bulk whiskey rem ains strong at firm and profitable prices. Dem and for high wines for blending purposes is also good. Some of this latter product is being chemically treated to purify it and improve its taste and is to be used in place of alco hol for the production of gin and cordials. T R A N SP O R T A T IO N Carloadings of all railroads operating in the Eighth D istrict for the four-week period ending March 28 were 1 per cent below those of the previous fourweek period, but 5 per cent above the corresponding period last year. Loads interchanged by the Term inal Railroad Association for twenty-five railroads at St. Louis in M arch were 19 per cent more than in Feb ruary and 28 per cent above those for March, 1941. Cum ulative total of interchanges for the first three months of 1942 was 27 per cent above the corres ponding period of last year. Federal Barge Line tonnage moved between St. Louis and New Orleans on the M ississippi River in M arch increased 53 per cent over February but was 22 per cent below ton nage moved in March, 1941. A G R IC U L T U R E Farm ing Conditions—W eath er throughout March and early April in the E ighth D istrict was generally unfavorable for farm operations. A t mid-April es pecially, heavy rains in the more southern sections of the district have caused stream s to rise and have increased the danger of floods. Farm work in general is reported as being about two weeks late in most sections. Soil m oisture is abundant with some areas reporting the best subsoil condition in years. Frosts in late M arch caused some damage to fruits, es pecially early peaches. Cash farm income, including governm ent pay ments, in the U nited States in February amounted to $1,986,925,000, or $600,553,000 more thar\ in Feb ruary, 1941. For E ighth D istrict states cash farm income plus benefit paym ents in February totaled $187,823,000, or 46 per cent above a year ago. Farm em ploym ent on April 1 totaled 9,483,000 persons, which was 97,000 less than on April 1,1941. In E ighth D istrict States, there were 2,338,000 em ployed on farms on April 1. The supply of farm workers in these states on April 1 was about 63 per cent of norm al while demand for such labor was 99 per cent of normal. In E ighth D istrict States in creases in m onthly farm wage rates w ithout board over a year ago ranged from 21.5 per cent in T en nessee to 31.3 per cent in A rkansas and averaged 24.2 per cent, as compared w ith the countrywide increase of 26 per cent. Page 3 Prices received by farm ers on M arch 15 in the U nited States were 1 per cent above a m onth earlier and 42 per cent above a year ago. The g reatest price increases in the past m onth were registered by fruits and m eat animals, while prices of dairy and poultry products showed declines. Prices received by farm ers in E ighth D istrict states on M arch 15 showed slightly better gains than for the U nited States in comparison w ith a m onth earlier, and in comparison w ith a year earlier, in the south es pecially, were considerably greater than those for the country as a whole. Prospective plantings of spring crops for 1942 in E ighth D istrict states are shown in the table given below. T he increase in soy bean and peanut acre age is particularly notew orthy. A lthough Illinois and Indiana are the two principal soy bean produc ing states in the district, soy beans are now being planted in appreciable acreage in the more southern areas of the district. PRO SPEC T IV E PLA N TIN G S FOR 1942 ( I n thousands of planted acres) Crop E ig h th D istric t S tates 1930.39 A vg. 1941 1942 C orn — a l l ......... 29,154 26,064 27,369 O a ts ......................... 7,745 7,907 8,073 B a r le y ..................... 365 610 809 C o w p e a s * .............. 1,063 1,296 1,199 All S orghum s . . . 678 640 729 T am e H a y * * ___ 11,573 13,531 13,860 Soy b e an s* ............ 3,397 5,542 7,574 P e a n u ts .................. 103 91 155 P o t a t o e s ................ 314 279 291 Sw eet P o ta to e s .. 226 174 175 Tobacco — all . . 547 426 439 165 214 257 R ic e ......................... *A creage p a rtly d u p licated in hay acreage. **A creage h arv ested . 1942 as % of 1941 105 102 133 93 114 102 137 170 104 101 103 120. U n ite d S tates 1942 as % of 1941 10.5 103 121 103 94 103 141 166 101 102 107 106 Cotton—H eavy rains in late M arch and early April have retarded cotton crop preparations in m ost areas of the district. R eports indicate th at much breaking of land will have to be done over. V ery little plant ing has been done to date. Recent high w ater has threatened portions of cotton land in this area. Fertilizer shortage of some seriousness has de veloped. T he M ississippi D elta region reports a decline of approxim ately 50 per cent in available fertilizer. Difficulties are anticipated in producing the longer staple cotton requested under the Gov ernm ent program unless fertilizer supplies can be increased. Spot cotton m arket activity in recent weeks has raised the price of cotton to very high levels. Between M arch 17 and April 15 the price of 15/16 m iddling grade on the Memphis m arket ranged between 19.45c and 20.50c per pound closing on the latter date at 20.25c. According to the U nited States D epartm ent of A griculture the gain in cotton prices over a year ago is due prim arily to three factors: (1) The large in crease in consum er purchasing power, (2) the ex trem ely heavy demand for cotton textiles resulting Page 4 from large m ilitary and civilian requirem ents to gether w ith reduced im ports of raw and m anufac tured fibres, and (3) the heavy m ovem ent of the 1941 domestic crop into Governm ent loan, which coupled w ith private w ithholding of cotton made the total domestic supply this year about the same as last. Domestic mill operations rem ained at exception ally high levels throughout March. U nited States cotton consum ption in M arch was 966,631 bales. Dem and for cotton goods continues greatly in ex cess of productive capacity. The rate of operations for M arch was at 134 per cent of capacity as com pared w ith 117 per cent in M arch, 1941. Livestock—Receipts of cattle, hogs and sheep in M arch at the National Stock Yards were substan tially larger than in February and considerably above those of M arch, 1941. Despite this, prices of cattle and hogs moved up sharply during the m onth. T he average price of hogs at the National Stock Yards betw een M arch 17 and April 15 ranged from $13.10 to $14.32 per cwt., closing on the latter date at $14.21 per cwt. For the comparable period a year ago the range was from $7.69 to $8.82 per cwt. Unfavorable w eather has h u rt developm ent of the early spring lamb crop in M issouri and Tennessee. D eath losses in these states have been above aver age. Prospects for spring pastures are reported as good but to date there has been a shortage of green feed. In K entucky pastures have furnished good feed and early lambs have developed well and are in good condition. Cattle on feed on April 1, 1942 in Corn Belt states were 2 per cent less than on the corresponding date a year ago. This is the first year since 1937 th at the num ber on feed on April 1 was below the num ber of the previous year. Cattle on feed in Illinois and Indiana were ‘5 per cent and 10 per cent, respectively, below the num ber reported last April, while those in M issouri were 3 per cent greater than a year ago. Tobacco—W eather in K entucky during the latter p art of M arch was favorable enough to enable bur ley tobacco grow ers to make good progress in pre paring for the 1942 crop. B urning and sowing of plant beds were practically completed by April 1. The heavy rains of the second week in April bene fited plant beds, which needed m oisture. B urning and sowing of plant beds for Green River and stem m ing district tobacco are reported as pro ceeding satisfactorily. One sucker plant beds are reported in fairly good condition and progress is be ing made in preparing the fields for the new crops. R eports indicate the full acreage allotm ents for both of these types of tobacco will be planted. The final auction sales of E astern D istrict firecured tobacco will be held on April 22. Volume of sales and quality of offerings have been declining steadily. Sales for the season through April 16 am ounted to 38,278,884 pounds at an average price of $13.99 per cwt. W estern D istrict fire-cured m arkets will be closed by April 18. Volume and quality of offerings continue to decline and the sea son average price dropped by April 9 to $12.00 per cwt. For the season to April 9 total sales of this type am ounted to 12,302,172 pounds. Winter W heat — Prospects for the w inter wheat crop on the whole continue favorable. For the U nited States the April 1 report indicates a yield of 15.1 bushels per seeded acre as compared with 14.7 bushels a year ago and 11.8 bushels for the 10-year (1930-39) average. In M issouri and Illinois w heat crop prospects on April 1 point to the small est crops in m any years. Yields in both of these states are below average, and unfavorable weather last w inter prevented completion of seeding some of the intended acreage. A bandonm ent in these states is expected to be greater than usual. Other wheat producing states in the district report the crop in good condition w ith indicated yields approx im ating those of 1941. Despite the small size of the 1942 w heat crop in the U nited States, the July 1 carryover is expected to be 630,000,000 bushels which would be an increase of 245,000,000 bushels over July 1, 1941. COST OF L IV IN G A N D P R IC E S The cost of living in large cities in the United States continued to rise from m id-February to midMarch. T he rate of increase in the past m onth was 1.5 per cent which was greater than th at for the m onth betw een January 15 and F ebruary 15. Since M arch 15, 1941 cost of living in the U nited States has risen 12.9 per cent. This rise is expected to con tinue, reflecting the earlier advance in wholesale prices and the scarcity of an increasing num ber of consum er items. Rising freight rates also are exer cising some effect on living costs. Cost of living in St. Louis rose 2.1 per cent in the m onth and was 13.4 per cent above a year ago. In M emphis the rise from a year ago was 14.6 per cent. Food costs in the U nited States rose 1.5 per cent betw een F ebruary 17 and M arch 17 and were 20.5 per cent above the corresponding date last year. Increases resulted prim arily from rises in prices of pork, fruit, and canned vegetables and were offset in p art by seasonal declines in prices of butter, eggs and certain fresh vegetables. Food costs in St. Louis in the past m onth rose 2.5 per cent to lead all E ighth D istrict cities covered by the index in gain. Compared w ith a year ago, food costs in Little Rock have risen more than in the other Eighth D is trict cities w ith an increase of 25.6 per cent being registered. The index of wholesale comm odity prices (1926 = 100) rose to a new high since September, 1928 in the week ending April 11 when the index for all com modities stood at 98.1. Increases from a month earlier in prices of farm products and hides and leather products accounted for much of the rise. EM PLOYM ENT Total civil non-agricultural employment in Feb ruary declined to 39,842,000 from the January total of 38,871,000, a drop of 0.1 per cent. The February figure was, however, 6.4 per cent above the total of 37.448.000 for February, 1941. The decline of 29,000 from January was accounted for by seasonal de creases in em ploym ent in mines, construction, tran s portation and utilities, and trade, and was offset in part by sizable increases in m anufacturing and Government employment. N on-agricultural em ploym ent in E ighth D istrict States in February was 5,550,000, the same as in January, but 8.4 per cent above the total for Feb ruary, 1941. Only two E ighth D istrict States, K en tucky and M issouri, registered decreases from a month earlier. All were above the figure for Feb ruary, 1941. T he greatest increase from a year ago was shown by A rkansas, where the employment gain was 19.5 per cent. Fragm entary returns from scattered centers in this area indicate some rise in employment during March as w ar plants continue to absorb more w ork ers. The W P A estim ates th at unem ploym ent in March in the U nited States declined by 400,000, as 1.400.000 new workers entered the labor m arket and the total gain in all employm ent was 1,800,000. B A N K IN G A N D F IN A N C E Demand for credit in the E ighth D istrict during the past month has been som ew hat lighter than in the corresponding period last year. M any banks report commercial loans being paid back faster than new ones are granted. T otal loan, volume of reporting member banks in this district declined 3 per cent from March 18 to April 15 although it was 13 per cent above the level of mid-April, 1941. Investm ents of the district’s reporting member banks showed a 6 per cent increase from m id-M arch totals reflecting prim arily the issuance of T reasury Certificates of Indebtedness and increases in holdings of T reasury bills. Volume of investm ents at these banks now stands at a new all tim e peak. T otal loans and in vestm ents continue to gain in volume and on April 15 stood at $981,000,000. Page 5 Through the first week in April, gross deposits declined from the high reached March 11, but in creased sharply and reached a new peak on April 15 when they stood at $1,471,000,000. In connection w ith the A dm inistration of Regula tion W , this bank has begun the collection of sta tistics relating to consum er instalm ent loans made by banks and outstanding balances of such paper. The report for the m onth ended March 31 makes it possible to draw the first tentative conclusions con cerning the trend of bank instalm ent credit. The following table shows outstanding balances of con sumer instalm ent credit for 23 banks in this district on quarterly dates. These banks held approximately half of all bank instalm ent paper outstanding in this district. AT C O N S U M E R IN S T A L M E N T C R E D IT O U T ST A N D I! 23 E IG H T H D IS T R IC T B A N K S C hange from M arch 31, ( I n th o u san d s 1942 Dec. 31,’41 Sept. 30/41 June 30/41 of dollars) T o t a l .....................................$28,348 P u rch ased re ta il p a p er. 14,0.47 Perso n al cash l o a n s . . . . 3,855 O th e r in stalm en t lo an s. 10,446 * B reakdow n n o t available. — 12.7% — 14.1 — 1.5 — 14.5 — 18.1? — + 8.1 % 0.6 — 18.3 — 14.1 The table indicates th at the peak in bank instal m ent credit outstanding was reached in the late summ er or fall of 1941. This is confirmed to some extent by the fact th at retail autom otive paper out standing held by sales finance companies was at its highest level on A ugust 31, 1941. The largest de cline in bank instalm ent credit balances has been in autom otive paper, either purchased or direct. Per sonal loans show very little change from December 31 levels. T otal loan balances at reporting member banks follow a different pattern than do instalm ent bal ances. The highest point of total loan balances since the early 1930’s was reached in mid-December, 1941, and at the end of the year total loans were but slightly lower than this peak. Between December 31 and March 31 total loan balances declined 3.5 per cent and instalm ent loan balances decreased 12.7 per cent. From the peak in instalm ent loan balances on Septem ber 30 to March 31 the decline in such outstandings was a little more than 18 per cent, while total loan balances in the same period decreased but slightly more than 1 per cent. Evi dently the drop in instalm ent loans was more than offset by the increase in loans of other types for the period as a whole. However, from the end of 1941 the decline in consum er credit seemingly has accentuated the decline in total loan balances out standing. Since the last issue of this review, the Citizens Bank, Magnolia, A rkansas, became a member of the Federal Reserve System. Page 6 FA R M IN C O M E IN C L U D IN G G O V E R N M E N T B E N E F IT P A Y M E N T S F e b ru a ry C um ulative for 2 m onths 1942 1941 1942 1941 1940 $11,818 $ 28,021 $ 9,966 $ 21,074 $ 18,894 63,934 42,295 145,516 95,246 102,762 In d ia n a . . . . 35,760. 73,812 23,650 50,291 47,865 15,103 10,646 54,306 K e n tu ck y . 44,016 44,811 . . 14,202 9,430 M ississippi 30,647 20,829 18,828 M issouri. . 30,969 21,888 70., 42 3 48,890 45,262 11,035 39,465 T ennessee . .. 16,037 22,180. 28,632 ( I n th o u san d s of d ollars) 187,823 128,910 442,190 306,977 302,603 R E C E IP T S A N D S H IP M E N T S A T N A T IO N A L ST O C K Y A R D S R eceipts Shipm ents M ar., F eb., M ar., M ar., M ar., F eb., 1942 1942 1941 1942 1942 1941 C attle and C alves. . , 96,685 77,363 80,306 28,764 17,173 22,713 H ogs ............................... ,256,495 211,912 242,622 56,880 83,386 69,851 1,577 H orses and M u le s . . . 2,688 2,113 1,527 2,553 1,774 . . . 37,446 30,111 21,128 261 4,438 3,910 392,203 322,074 346,169 91,60.9 107,022 94,599 W H O L E S A L E P R IC E S IN T H E U N IT E D S T A T E S B u reau of L a b o r A pril S tatistics A pril A pril A pril 11/42 comp, w ith M arch 4 /4 2 11/42 14/42 (1 9 2 6 = 1 0 0 ) 12/41 M ar. 14/42 A pr. 12/41 A ll C o m m odities. . 98.1 F a rm P r o d u c ts . 104.6 Foods .................. 97.0 O t h e r .................. 95.6 97.9 104.2 97.2 95.6 97.1 102.3 95.8 95.2 82.9 74.9 77.5 85.9 + + + + 1.0% 2.2 1.3 0..4 + + + + 18.3% 39.7 25.2 11.3 CO ST O F L IV I N G B u re au of L a b o r M ar. 15, Feb. 15, M ar. 15, S tatistics 1942 1941 (1 9 3 5 -3 9 = 1 0 0 ) 1942 101.2 112.6 U n ited S ta te s ......... .... 114.3 101.2 St. L o u is .............. ....114.8 112.4 M em phis ........... ....114.8 100.2 *N ot available. M ar. 15/42 comp, w ith Feb. 15 ,’42 M ar. 15/41 4-12.9% + 1.5% 2.1 -t-13.4 + 14.6 B u reau of L a b o r S tatistics (1 9 3 5 -3 9 = 1 0 0 ) M ar. 17/42 comp, w ith F eb. 17/42 M ar. 18/41 M ar. 17, 1942 COST O F F O O D Feb. 17, M ar. 18, 1942 ----1941 U . S. (51 cities) . . . 118.6 St. L o u is .................. 122.9 L ittle R eek . . . . 120.1 L o u is v ille ................119.3 M e m p h is ..................117.8 116.8 119.9 119.1 118.2 116.1 98.4 99.5 95.6 96.2 95.7 + + 1.5% + 2.5 0.8 + 0.9 + 1.5 + +20.. 5% + 2 3 .5 + 2 5 .6 + 24.0 + 23.1 I N D E X E S O F E M P L O Y M E N T IN M A N U F A C T U R IN G I N D U S T R I E S B Y M E T R O P O L IT A N A R E A S B u re au of L ab o r S tatistics Jan ., D ec., Jan ., J a n .,’42 comp, w ith (1 9 3 7 = 1 0 0 ) 1942 1941 1941 Dec. ,’41 Jan . ,’41 79.0 90.4 E v a n sv ille .................. 81.0 L o u isv ille ................... 118.0 119.3* 109.5 M em p h is..................... 108.8 10,8.3* 110.8 St. L o u is ..................... 120.1 121.4* 104.4 *Revised. B U IL D IN G P E R M IT S New C onstruction N um ber Cost (C ost in tho u san d s) 1942 1941 1942 1941 35 $ 156 $ 102 30 32 59 47 295 3,655* 397 209 190 252 685 296 1,225 329 569 4,043* 188 4,723 6,062 M ar. T o tals . . 711 1,298 1,212 2,292 1,552 849 Feb. * In clu d e low cost housing projects. E v an sv ille. . . . L ittle R ock. . . Louisville + — + — 2.5% 1.1 0.5 1.1 — 10.4% + 7.8 — 1.8 + 1 5 .0 R epairs, etc. N u m b er C ost 1942 1941 1942 1941 101 125 44 217 189 676 575 116 87 46 234 121 604 427 $ 51 37 96 389 163 736 489 $ 61 38 51 265 123 538 553 V A L U E C O N S T R U C T IO N C O N T R A C T S L E T ( I n th o u san d s M a r./4 2 comp, w ith of dollars) M a r./4 2 F e b .,’42 M a r./4 1 F e b .,’42 M ar./4 1 T o tal 8th D is t.. . $65,351 $49,545* $81,108 S o u rc e : F . W . D odge C orporation. *Revised. (K .W .H . in tho u s.) 19% 32% C O N S U M P T IO N O F E L E C T R IC IT Y M ar., M arch , 1942 M ar., Feb., N o. of com pared w ith 1941 C ustom ■ 1942 1942 K .W .H .. Feb., 1942 Mar,.,1941 ers* K .W .H . K .W .H . 4,364 Evansville . . . . 40 2,251 L ittle R ock . . . 35 82 15,650 4,852 31 1,166 P in e B luff . . . . 19 55,022 . . 125 332 83,305 *Selected in d u stria l custom ers. ( I n thou san d s of tons) + 4,058 2,591 15,325 4,513 1,393 50,623 78,503 5,160 2,242 12,736 3,877 1,048 48,215 73,278 + 8% — 13 + 2 + 8 — 16 + 9 + 6 — 15% 0+ ' 23 + + + + 25 11 14 14 P R O D U C T IO N O F B IT U M IN O U S CO A L M a r./4 2 comp, w ith M a r./4 2 F e b .,’42 M ar./4 1 F e b .,’42 M ar./4 1 U n ited S ta te s ___ I l l i n o i s ................... 47,400 4,772 43,843 4,855 48,250 5,261 — 2 % — 9 L O A D S IN T E R C H A N G E D F O R 25 R A IL R O A D S A T ST. L O U IS First nine days A pr.,’41 3 m os.’42 3 m os.’41 Mar. ,’42 F eb.,’42 M ar.,’41 A pr.,’42 364,088 287,749 133,909 112,794 10,4,955 39,634 29,566 Source: Terminal Railroad A ssociation of St. Louis. W H O L E S A L IN G Lines of Commodities N et Sales Data furnished by Bureau of Census, U . S. D ept, of Commerce. A utom otive Supplies................................ Drugs and C hem icals.............................. Dry G o o d s .................................................. Electrical Supplies.................................... F urniture....................................................... G roceries....................................................... H ardw are....................................................... Machinery, Equipment and Supplies. Plumbing S u p p lie s .................................. Tobacco and its P rodu cts..................... M iscella n eo u s.............................................. Total all lin es*........................................... *Includes certain lines not listed above. 15 1 6 — 17% 33 50 + + + — + + 46 3 53 .... ++ 22 7 3 m os.’42 1 39 31 21 33 + 61 + 20, Stocks on Hand Stock Turnover Mar. 31,’42 comp, with Mar. 31,’41 Jan. 1, to Mar. 31, 1942 1941 N et Sales period ’41 % +27 — 4 — 67 -3 3 — 1 + 16 4- 11 4 11 — 3 + 16 -0 — 30 — 13 — + + + D E P A R T M E N T ST O R E S March, 1942 compared with M ar.,’41 Stocks Mar. 31, 1942 comp, with Mar. 31, 1941 March, 1942 compared with Feb.,’42 M ar.,’41 .75 +49% + 42% .88 Ft. Smith, A r k ... +409< + 52% +28 +26 .87 .95 L ittle Rock, Ark. + 3 0 + 41 +20 E. St. Louis, 111. + 3 4 + 3 + 27 + '25 .91 .93 +20 Quincy, 111............ --3 5 + 25 Evansville, I n d ... --5 4 + 16 + 5 6 .97 1.12 Louisville, K y .. . . + 3 5 + 17 + 21 + 32 + 53 .97 1.05 +30 St. Louis, M o .. .. + 3 6 .68 + 44 .65 Springfield, M o ... + 3 5 — 3 + 9 + 25 Jackson, T e n n .... + 5 0 + 11 .83 +29 +30 + '37 .81 Memphis, T e n n ... + 2 6 .78 .71 *A11 other c it ie s .. — 47 + 24 + 23 + 57 1.00 8th F . R. D istrict + 3 5 +26 + 29 + 49 .93 *E1 Dorado, Fayetteville, Pine Bluff, A r k .; Alton, Harrisburg, Mt. Vernon, 111.; Vincennes, I n d .; D anville, Hopkinsville, Mayfield, K y .; Chillicothe, Mo. Trading days: March, 1942— 26; Feb., 1942— 24; March, 1941— 26. Outstanding orders of reporting stores at the end of March, 1942, were 116 per cent greater than on the corresponding date a year ago. Percentage of accounts and notes receivable outstanding March 1, 1942, collected during March, by c itie s : Instalm ent E xcl. Instal. Instalm ent Excl. Instal. A ccounts A ccounts A ccounts A ccounts Fort S m ith . . . . % 40% Q uincy..............21 ^ 46% St. L o u is. . . . 23 L ittle R o ck . . 17 40 55 Other citie s. . 12 49 50 Louisville . . . 20 8th F. R. D ist. 22 43 M emphis . . . . 30 50 I N D E X E S O F D E P A R T M E N T ST O R E S A L E S A N D ST O C K S 8th Federal Reserve D istrict (1923-1925 average = 100) March, Feb., Jan., Mar., 1942 1942 1942 1941 101 110 97 Sales (daily average), U nadjusted.................... 125 Sales (daily average), Seasonally a d ju sted .. 130 117 138 107 Stocks, U nadjusted.................................................. 115 103 87 78 Stocks, Seasonally adjusted.................................. 113 108 100 75 Trading days: March, 1942— 26; Feb., 1942— 24; March, 1941— 26. S P E C IA L T Y ST O R E S N et Sales March, 1942 3 m os.’42 compared with to same F eb.,’42 M ar.,’41 period ’41 Stocks on Hand Mar. 31,’42 comp, with Mar. 31,’41 Stock Turnover Jan. 1, to Mar. 31, 1942 1941 .65 M en’s F u rn ish ings+ 105% + 1 2 3 % +75% .87 + 35% 1.67 Boots and S h o e s .. + 75 + 42 4*39 1.66 + 31 Percentage of accounts and notes receivable outstanding March 1, 1942, collected during M arch: M en’s F u rn ish ings.......................39% B oots and Shoes. ..........................36% C H A N G E S IN P R IN C IP A L A S S E T S A N D L IA B IL I T I E S F E D E R A L R E S E R V E B A N K O F ST. L O U IS Change from April 15, March, 18, April 16, (In thousands of dollars) 1942 1942 1941 Industrial advances under Sec. 13b. Other advances and rediscounts. . . . U . S. securities......................................... Total earning assets. 110.433 110.433 T otal reserv es......................... Total d ep o sits......................... F. R. N otes in circulation. 642,307 408,005 341,588 Industrial commitments under Sec. 13b. — 1,773 + + 5 4,197 4,192 22,106 ■25,120 • 4,207 4 317 + + 9,087 9,087 + 159,990 + 62,650. + 106,738 + 1,498 F E D E R A L R E S E R V E O P E R A T IO N S D U R IN G M A R C H , 1942 (Incl. Louisville, Memphis, L ittle R eek branches) Pieces Am ounts Checks (cash items) handled.................................. 6,290,155 $2,004,626,390 Collections (non-cash item s) handled................ 135,502 47,301,967 Transfers of funds....................................................... 5,221 527,274,575 Currency received and counted.............................. 11,678,299 43,573,538 Coin received and counted....................................... 13,70.8,100 1,182,306 Rediscounts, advances and com m itm ents......... 2 400,000 N ew issues, redemptions, and exchanges of securities as fiscal agent of U . S. Govt., etc. 196,655 110,825,087 Bills and securities in custody — coupons clipped 21,281 ............................... R A TE S O F T H IS B A N K F O R A C C O M M O D A T IO N S U N D E R T H E F E D E R A L R E S E R V E AC T Advances to banks, secured by direct obligations of the U nited States, under paragraph 13 of section 1 3 .. 1 % per annum Advances to member banks, secured by direct obliga tions of the U nited States or by such Government guaranteed obligations as are eligible for collateral, under paragraph 8 of section 1 3 ........................................... 1 % per annum Rediscounts and other advances to member banks un der sections 13 and 13a......... .................................................... 1 % per annum Advances to member banks under section 1 0 (b )................ 1/4% per annum Advances to individuals, firms, and corporations, other than banks, secured by direct obligations of the U nited States, under paragraph 13 of section 13............3 % per annum Industrial advances to member banks, nonmember banks, and other financing institutions under sec tion 13b: < i y 2 % to (a) On portion for which such institution is obligated I 2 % per annum (b) On remaining portion — N o charge to financ ing institution. Federal Reserve Bank will retain interest collected from borrower. Advances to established industrial or commercial ( 3 j4 % to businesses under section 13b................................................ \ S l/ 2 % per annum Commitments to member banks, nonmember banks, and other financing institutions, under section 1 3 b . . . . l % per annum Provided: that on commitments issued for periods of 90 days or less the minimum charge shall be Y\ of 1 % fla t; and further provided, that on commitments for loans secured by assignment of “ Emergency Plant Facil ities Contract” with the U nited States Government, the rate may be as low as J4 of 1% per annum. P R IN C IP A L R E SO U R C E A N D L IA B IL I T Y IT E M S O F R E P O R T IN G M E M B E R B A N K S Change from April 15, Mar. 18, April 16, (In thousands of dollars) 1942 1942 1941 Commercial, industrial, agricultural loans. $270,839 — 8,434 + 44,947 Open market p a p e r .............................................. 23,023 — 846 4 7,621 Loans to brokers and dealers......................... 3,842 — 146 •— 1,283 Other loans to purchase and carry securities. 10,233 — 139 — 1,611 58,797 — 944 — 1,40.1 Real estate lo a n s .................................................. Loans to banks....................................................... 191 — 21 — 915 Other lo a n s.............................................................. 73,211 — 1,611 4 2,327 Treasury Certificates of Indebtedness......... 12,371 4 1 2 ,3 7 1 + 12,371 Treasury bills ....................................................... 50,897 + 1 7 ,1 8 2 — 7,372 Treasury n o t e s ....................................................... 42,438 — 61 + 5,807 U . S. bonds.............................................................. 261,122 4 384 4 77,419 Obligations guaranteed by U . S. Government 61,973 4 3,633 — 215 Other sec u r ities..................................................... 112,485 — 1,475 — 4,251 + 15,481 Balances with domestic banks......................... 211,987 — 11,103 Demand deposits — adjusted*......................... 655,528 + 1 0 ,4 5 3 4 1 0 0 ,7 1 7 Time d e p o s its......................................................... 183,518 4 812 — 9,211 U . S. Government deposits.............................. 52,043 + 3,863 + 37,699 Interbank deposits................................................ 484,736 + 1,763 4 64,271 *Other than interbank and Government deposits, less cash items on hand or in process of collection. Above figures are for 24 member banks in St. Louis, Louisville, M em phis, L ittle Rock and Evansville. Their resources comprise approximately 75% of the resources of all member banks in this district. (In thousands of dollars) D E B IT S TO I N D I V I D U A L A C C O U N T S Mar., Feb., Mar., M ar.,’42 comp, w ith 1942 1942 1941 Feb .,’42 Mar.,’41 , . Ark.$ 7,520 “ 20,508 “ 2,108 “ 66,540 “ 14,473 .-Tex. 29,171 r.,m . 63,759 .. “ Q uincy,. 12,498 . . Ind. 40,895 Louisville, ., 244,693 Owensboro, 7,459 Greenville,. . , Miss. 7,007 St. L ou is,. . . . .M o. 810,326 “ Sedalia,. . . . 3,021 “ 21,430 Springfield, , . Tenn. 227,976 T otals......................... 1,579,384 Fort Sm ith,. Helena, Little Rock, Pine Bluff, . $ 6,405 17,826 2,005 55,947 11,639 26,451 56,728 10,210 36,725 227,764 7,111 8,604 688,158 2,923 18,390 210,089 1,386,975 $ 5,530 17% 13,561 15 1,813 5 51,525 19 8,481 24 8,800, 10 46,001 12 9,720 22 39,838 11 227,977 7 6,540 + 5 5,652 29 670,40.0 + 18 2,278 + 3 17,711 + 17 181,563 + 9 1,297,390 + 14 b 36% - 51 - 16 - 29 - 71 -231 - 39 - 29 - 3 7 + 14 + 24 + 21 + 33 + 21 + 26 22 + C O M M E R C IA L F A I L U R E S IN E IG H T H F. R. D IS T R IC T M ar.,’42 comp, with M ar.,’42 F eb .,’42 M ar.,’41 F eb .,’42 M ar.,’41 N u m b e r ................ 39 L iabilities.............. $482,000 Source: Dun and Bradstreet. (Completed April 24, 1942) 34 $336,000 48 $800,0.00 + 15% +43 — 19% — 40 Page 7 INDUSTRIAL PRODUCTION N A TIO N A L SUM M ARY O F CO N DITIO NS B Y B O A R D O F G O V E R N O R S O F F E D E R A L R E S E R V E SY ST E M Industrial activity continued at a high rate in March and the first half of April. Distribution of commodities to consumers was maintained in large volume and commodity prices advanced further. Federal Reserve monthly index of physical volume of pro duction, adjusted for seasonal variation, 1935-39 average = 100. Latest figures shown are for March, 1942. DEPARTMENT STORE SALES AND STOCKS Federal Reserve monthly indexes of value of sales and stocks, adjusted for seasonal variation, 1923-25 average = 100. L atest figures shown are for March, 1942. MEMBER BANKS IN 101 LEADING CITIES Production — Volume of industrial production increased seasonally in March and the Board’s adjusted index remained at 172 per cent of the 193539 average. Output of durable manufactured products, now mostly war materials, continued to advance, reflecting mainly increased activity in the iron and steel, machinery, aviation, and shipbuilding industries. Production of lumber and cement, which had been maintained at unusually high levels during the winter months, increased less than seasonally in March. In most industries manufacturing nondurable goods activity was sustained at earlier high levels. In some, however, notably wool textiles and petroleum refining, there were declines owing to restrictions on production for civilian use and, in the case of petroleum products, to transportation difficulties. Mineral production declined in March and the first half of April, reflecting sharp curtailment in output of crude petroleum. Coal production, which usually declines at this season, was maintained in large volume. The Great Lakes shipping season opened in the latter part of March and the first boat load of iron ore reached lower Lake ports 12 days earlier than the record set last year. Shipments during the coming season are expected to exceed considerably the total of 80 million gross tons brought down the Lakes last year. Value of construction contract awards continued to increase in March, according to figures of the F. W. Dodge Corporation, and the level of the first quarter of 1942 was the highest in recent years, being some 30 per cent above that of the corresponding period last year. Awards for public work amounted to close to 80 per cent of the total and in the residential field ac counted for 52 per cent of the value of all projects. Publicly-financed con tracts for factory construction showed a sharp increase, partly offset in the total by a decline in private factory construction. On April 9 the explicit permission struction involving covered by specific War Production Board issued an order which required of the Government for initiation of all new private con expenditures in excess of specified small amounts and not priority ratings. Distribution — Value of retail trade in March continued at the high level of other recent months, making allowance for customary seasonal changes. Sales at department and variety stores increased by somewhat less than the usual seasonal amount while sales by mail-order houses rose more than seasonally. On the railroads total loadings of revenue freight were maintained in large volume in March and the first half of April. Shipments of coal and coke declined less than seasonally and ore loadings increased sharply, while grain shipments declined further from the peak reached in January. Loadings of miscellaneous merchandise, which had been unusually large in the preceding three months, increased less than seasonally. 1938 1939 W ednesday figures. Commercial loans, which include in dustrial and agricultural loans, represent prior to May 19, 1937, so-called “ Other loans” as then reported. Latest figures shown are for April 8, 1942. MEMBER BANK RESERVES M LUOM SOfOOI.LAM Commodity Prices — The general level of wholesale commodity prices advanced iy 2 per cent further from the middle of March to the middle of April. Among manufactured products, finished consumers’ goods, such as foods, clothing, and shoes, continued to show the largest price increases. Prices of most raw materials were unchanged or showed increases, which in a number of cases reflected the raising of Federal maximum price levels. There were declines in prices of wheat and of a few other commodities, including gasoline at Gulf ports and turpentine. In retail markets maximum prices were fixed in this period for a number of electrical products, most of which will no longer be produced for civilian use after May 31. Prices of many other commodities and services advanced further. Bank Credit — During the four weeks ending April 15 holdings of Gov ernment securities at banks in leading cities increased by nearly 700 million dollars, while commercial loans declined somewhat, following a rise in pre vious weeks. Changes in member bank reserves and deposits reflected prin cipally the temporary effects of Treasury operations in connection with income tax collection and the sale of certificates of indebtedness. Money in circulation continued to increase. W ednesday figures. Required and excess reserves, but not the total, are partly estimated. Latest figures shown are for April 8, 1942. Page 8 United States Government Security Prices — Following an advance from the mid-February low, prices of U. S. Government bonds remained relatively steady in the first half of April.
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