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FEDERAL RESERVE BANK OF ST. LOUIS MONTHLY REPORT ON GENERAL BUSINESS AND AGRICULTURAL CONDITIONS IN FEDERAL RESERVE DISTRICT No. 8 RELEASED FOR PUBLICATION ON AND A FTER TH E AFTERNOON OF DECEMBER 30, 1920 WILLIAM McC. MARTIN, CHAIRM AN OF TH E BOARD AND FEDERAL RESERVE AGENT /C O N D IT IO N S of extreme apathy in commodt ity buying, outlined in the preceding issue of this report, underwent no favorable change during the past thirty days. The quietness was accompanied by further price cuts, which with few exceptions, extended to all lines investigated. Pro cesses involved in the readjustment movement have been accelerated by uncertainty relative to ultimate stabilization and the drastic declines have failed to promote buying. This is especially true in provid ing for future requirements. Immediate business, while nothing like what it was in recent months and during preceding seasons, is making a fair showing. Placing of orders for forward delivery is at a minimum, and in many lines nil. With the public there is a general disposition to economize, while merchants are taking only such goods as they can dispose of at once. Manufacturers are proceed ing with the utmost caution in the matter of pro viding themselves with raw materials. Orders on the books of manufacturers have been considerably reduced, which fact is entailing curtailed opera tions, and in a number of instances, closing down of plants. A direct result of this is the release of workmen, and according to State and Federal labor commissioners the surplus of both skilled and un skilled workers is rapidly augmenting. The Christmas holiday trade served in a meas ure to stimulate the retail section of distribution, but hardly to the extent anticipated. Returns of the closing weeks of November and the first half of December were decidedly spotted. In some localities the volume was heavy, while elsewhere it was disappointing. Then there was considerable diversity in reports from within a given city or country district. Some stores related that shopping was brisk, while others said their stocks had not moved with the usual holiday celerity. It was noted, however, that best results were obtained where special effort was put forth, either in the way of price concessions or intensive salesmanship. Replies to questionaires and other sources of information develop that liquidation of manufac tured goods has made excellent progress through out this district during the past month. Invenones have been materially reduced, and the arrival th ^ stocks in much better shape an thought possible sixty days ago. This has een accomplished at considerable sacrifice, howver, heroic measures having been adopted in numrous notable instances. In the retail division the <Mise cleaning has been less thorough than in be f ^ manufacture, though since Decem? I price reductions to the ultimate consumer have been on a more impressive scale than at any time since the price curve started downward. Among the lines in which further declines took place during the period under review may be men tioned clothing, textiles, boots and shoes, candies, groceries, lumber, Hour, millinery, woodenware, electrical supplies, furniture and fuel. Metal goods have begun to feel the recessionary movement, independent dealers and manufacturers having cut their quotations to a parity with those of the lead ing interest. The final report of the U. S. Department of Agriculture, which was released December 14, showed no change worthy of note in final estimates of production in this district as compared with im mediately preceding bulletins. In point of quantity and quality the harvest was eminently successful. The average yields per acre of all crops combined in states of the Eighth Federal Reserve District, duly weighted, compared with yields of recent years, was 104.1 per cent. These excellent results, how ever, have not had the effect in agricultural com munities which usually accompany big production. Marketing conditions continue unfavorable, due to slack demand for home consumption and export. Farmers are unwilling to accept prices offered, especially for such important staples as cotton, corn, wheat and tobacco, and the movement to mar ket is the slowest in years. Some idea of the magni tude of price reversals can be formed from accounts of the opening sale in the dark tobacco district on December 9, at Owensboro, Kentucky. The prices at the opening of the market averaged $5 per 100 pounds, which compares with $18.97 at the initial sale in 1919. Farmers rejected these prices and launched a plan to prize this year's crop and hold it off the market. Marketing conditions of cotton have not bettered, the price having slumped fur ther, and the demand showing no signs of life. Unusually wide and erratic fluctuations marked the course of prices of farm products in the St. Louis market during the past thirty days. A com parison of prices of typical products between November 15 and December IS, shows the follow ing declines: December wheat, 10%c; March wheat, ll% c ; December corn, 7% c; May corn, 8 ^ c ; July corn, 7^%c; May oats, 5 ^ c ; No. 2 red winter wheat, 7c; No. 2 hard wheat, 10c; No. 2 com, 14c; No. 2 white corn, 12c; No. 2 white oats, 3%c; soft patent Hour, 60c to $1.50; spring patent, unchanged to 35c. Middling cotton declined 4c between the dates mentioned. Daily improvement in the iuel situation is reported. The open wiateg to date has permitted of intensive distribution, and it is now well estab lished that all sections of this district will receive quotas ample to carry them comfortably through to spring. The demand for steaming coal has fallen off, and the same is true relative to metallurgical coke. Prices for both these varities of fuel are eas ier. The 1920 output of bituminous coal to Decem ber 11 totaled 512,431,000 tons, which is about 33,000,000 tons behind 1918, but this does not mean a great deal because during that year production exceeded consumption and provided a net addition to consumers' stocks of more than 30,000,000 tons. Neither does it signify much that 1920 is far ahead of 1919, for in 1919 there was a net draft on stocks of 40,000,000 tons and the close of the year follow ing the coal strikes of November-December, found consumers' stocks dangerously low. It is more sig nificant to note that 1920 is now within 3,250,0&) tons of 1917, a year when requirements were large and production about equalled consumption. Affairs generally in the category of transporta tion are described as satisfactory by officials of lines operating in this territory. All congestion has been eliminated and freight is moving unhampered in all directions. The mild weather has helped things marvelously to date, and the carriers anticipate no difficulties later on, due to the fact that they are entering the winter with clear tracks. As con trasted with a year ago offerings of freight are smal ler, but November and the first two weeks of December are well up with October. Southwestern roads are busier, relatively, than those operating to the East, where tonnages handled are more dependent upon prosperity in manufacturing. Pas senger business continues to hold up well. Some diversity exists in accounts of collec tions, but the general average during the past month is disappointing. The showing was not as good as during the preceding month, and consid erably under the corresponding period a year ago. Bankers and merchants, especially in the cotton com, wheat and tobacco sections, report endless requests for extensions. Retailers say they are not getting in their money as promptly as heretofore, though on the whole there is less complaint in that end of distribution than in wholesale, except in certain country districts. Commercial failures in the Eighth Federal Reserve District during November, according to Dun's, were 58, involving liabilities of $829,889, against 28 in November, 1919, with liabilities oi $235,393. In October this year there were 47 fail ures involving liabilities of $1,280,507, and in Sep tember, 35 failures with liabilities of $352,873. Banks and trust companies through the dis trict with bond departments and houses specializ ing in investments report that the bond business is slow. The recent demoralized condition of the New York Stock Market has had a disturbing effect on securities generally. Investment buying is con fined principally to persons with large surplus cash resources, and they are taking chiefly bonds secured by taxes. The genera! run of smaller investors are strongly disposed to conserve their cash. This fact is strikingly illustrated by savings figures of St. Louis financial institutions. On December 1, 1920 there were 361,987 savings accounts with deposits of $77,296,709, against 296,771 accounts with a total of $58,570,235 deposits on December 1, 1919. This represents a gain of 12^% per cent in the number ol accounts and 25 per cent in savings for the dates compared. The per capita circulation of the United States on December 1 was $59.41, against $59.48 on No vember 1 and $55.65 on December 1,1919. MANUFACTURING AND WHOLESALE Uncertainty relative to prices which exists hands more slowly than in any like period in more among merchants and the public continues the than a decade. chief factor in wholesale merchandizing and manu Boots and Shoes—The volume of b " s ^ facture. New business, especially for future deliv transacted in November by reporting ery, is being slowly placed. Certain important lines, and firms showed a decrease as compared wit in which usually at this season goods for spring same time last year of from 18 to 36% per c consumption have been wholly or in large part Results during the first two weeks of Decem ordered, are absolutely quiescent. No attempt what made a showing slightly worse than P* of future orders, but were steady to a shade ever has been made to book orders. The past thirty on orders for immediate shipment. days have developed fewer cancellations than the industry is described as dead slow, but all 8 preceding month, but this is explained by the fact considered collections are fair. Prices have that there are fewer orders to cancel. Efforts to further marked down during the past thirty obtain stock orders, even at radically reduced Raw materials continue soft, except hides R"** ^ prices, have proved futile. For the most part plants skins, in which a buying movement has been ; m operation are engaged in completing old orders, On December 1 the U. S. G o vernm ent the volume of which has been materially reduced. 250,000 pairs of shoes at an average price ol ^ j Virtually all wholesalers canvassed report decreases This represents a decline in thej average pr m business as compared with the corresponding $1.23 under the preceding purchase, which w period a year ago. The losses range from 5 to 80 September, and compares with?$6.97% Pj* P ^ per cent, with the average around 58% per cent. paid by the Government in March. The . Several large interests whose Hgures make a rela in December was explained by the fact that n tively good showing, report that the feat was possi ous factories were competing the work "i ble only by dint of specia! effort and the staging of to keep operating and hold organizations mta great sa!es in which goods were put into consump tion at considerable sacrifice. Typical holiday Clothing—Some manufacturers s e n t their ^ goods, such a* candy, toys, and certain canned and men out on December 1 and report a ^ preserved fonts, moved out of first and second but generally there has been no change i?o f o r dull conditions obtaining since early in October. Prices are unsettled, with further declines recorded in all varities of ready-to-wear garments. Future orders have been heavily reduced, and with a num ber of interests have entirely disappeared. On the average collections are about 25 per cent under the corresponding period a year ago. The mild weather has had a detrimental effect on distribution of heavy clothing. Electrical Supplies—Plant operation in the district has been sharply curtailed since the begin ning of November, due to cancellations of orders and absence of new business. Buying is confined to small lots for immediate use. Distributors reports indicate a decrease in sales during October of from 28 to 40 per cent as compared with the same month in 1919. The quantity of goods sold for the holiday trade was the lightest since 1913. Iron and Steel Products—Aside from a further weakening in prices, there was no marked change in this classification as contrasted with the preced ing month. Goods are more plentiful than at any time since the scarcity due to the war set in. Foundries and rolling mills report a dearth of new business and a sharp decrease in unfilled orders. Absolutely nothing is being done in the way of raw material buying. Pig iron is dull and lower, being offered at $35 to $38 per ton for 1.75 to 2.25 per cent silicon. Larger quantities of resale iron are appearing on the market, which is selling consider ably under the mentioned quotations. Hardware—For the first time this year hard ware interest are reporting a decrease in sales under the preceding month, the losses ranging from 5 to 18 per cent. The heaviest decreases were sustained by Southern houses, which *fact is attributed to unfavorable conditions in the cotton and tobacco districts. Generally the trend of prices is easier, though cuts in this line are considerably less marked than elsewhere. Cancellations were heav ier than the month before. Collections are fair to good. Flour—Millers report conditions in their busi ness the most unsatisfactory experienced in recent years. The export demand is abbreviated, and domestic buyers are holding off, or taking barely enough to supply absolute requirements. The point on which there is most unanimous complaint, however, is the instability of the wheat futures ^narket. Fluctuations in the past six weeks indicate a typical speculative situation, changes in single sessions being beyond anything which legitimate supply and demand could influence. These erratic price jolts have the effect of completely disorganiz ing the Hour market, and result in numerous can cellations or orders for Hour. Mill operation in the district is at only from 45 to 50 per cent of capacity. Mills in the St. Louis industrial district have f ^ ^ ^ wages of all operatives amounting o 50c a day. This is the first general wage reduc^^announced by any large industry in the middle Candy—The pruning knife was applied to candy prices during the past thirty days, reduction rang* ^ *?*** ** 1.5 per cent. Concessions were made ,.o**<Ier to stimulate Christmas holiday buying, i.tito interests canvassed, was astonmgly light. The general report is that retail merchants are well stpcked up, and are unwilling to purchase until they work off their high priced goods. Forward buying is virtually at a standstill. Sugar and other raw materials continue downward, but no change in the wage scale has taken place. Sales during the past thirty days show declines under the same time in 1919 of 20 to 68 per cent. Collections are poor to fair, with the principal! delinquency to the South. Drugs and Chemicals—Business with the lar ger interests holds steady to a shade under that of the same time last year, but distributors in cities outside of St. Louis report decreases of from 15 to 25 per cent both under last year and the preceding month. Certain lines of chemicals and drugs are declining considerably, but proprietory medecines hold firm. In sundries, glass and paper goods handled by drug distributing firms, the trend of values is downward. Lumber—The outstanding feature in this industry during the past thirty days has been the beginning or readjustment in manufacturing costs. Many sections of the South report wage reductions in woods and mills. The price trend has continued downward. Late in November yellow pine inter ests made substantial price cuts and moved a fairly heavv volume of surplus stocks. One Douglas fir manufacturer suddenly cut prices and booked ap proximately 25,000,000 feet (board measure) in the East in four or five days selling—then cancelling his quotations. These movements reduced the gen eral level of softwood prices but helped dispel the torpor that had settled in the lumber market. Des pite continued weakness in demand and prices, the hardwood situation has improved by the disappear ance of some stocks that were in weak hands. Early December witnessed a slight improvement in hard wood export movement and in railroad demand in the domestic market. Industrial consumers, the chief buyers of hardwoods, remain virtually out of the market. Woodenware—Sales of reporting interests dur ing the past month show decreases as high as 40 per cent under the same month last year and losses of 30 per cent under the preceding month this year. Prices declined on an average of 10 per cent, and are now about 30 to 40 per cent under those obtain ing at this time last year. A sharp reduction in the number of employees is reported. Several large interests say their forward orders have all been filled. Collections are good. Furniture—Buying for immediate shipment is a shade better than a month ago, but future busi ness is described as the quietest so far experienced. Buyers are holding off awaiting prices to be set at the great sales at Grand Rapids and Chicago in January. Manufacturers are unable to interest their customers in forward orders, though liberal conces sions have been offered. Prices have been reduced from 10 to 12i4 per cent in the past thirty days, and the cuts extend pretty well through the entire line. Plant operation in the district has been re duced approximately 60 per cent of capacity. Fire Clay Products—Manufacturing is centered in the filling of old business, and new orders are being sparingly placed. The blowing out and bank ing of furnaces has materially teduced the demand for refractories. The trend of prices is downward. Collections are reported fair. Miscellaneous—Generally speaking the trend of things in the more important lines obtain in sta tionery, cooperage, bags, rope, brooms and brushes, saddlery, paints, glass and paper. Buying is being held down to immediate wants, and future ordering is at a minimum. Stocks of goods have been re duced somewhat, but are still apparently ample to All all requirements. RETAIL The past thirty days have been marked by numerous and drastic cuts in retail prices, but the reductions are in a large measure isolated and specialized, and do not cover the general line in anything like the degree noted in wholesale. Many important commodities used in daily consumption are little, if any, cheaper than heretofore. The holi day season helped matters materially in Anal dis tribution, but even in the shopping rush of early December there was a decided disposition to dis criminate in the matter of price and quality, with stores making greatest concessions in these regards attracting most trade. A striking example of this is developed in the report of a department store in Indiana, sales of which showed a gain of 60 per cent during the past thirty days over those of the same time last year. Commenting on this showing the president of the establishment said: "Just a word of explanation of our abnormal gain in sales. We anticipated the break in prices and in October planned unloading sales. We closed the store for one day and went through every department, mark ing down, and have since followed the market downward, as we followed it upward during the last two years. We felt that was the quickest way to get back to a profit basis." Jewelers report a reduction in sales under last year, and comment on the fact that fewer very expensive pieces are being taken. In sporting goods, principally arms, the movement was fair, but considerable reaction against prices was noted on the part of buyers. Furnishing goods handlers say that they have suc ceeded in reducing their stocks through the con sumptive channel, but that the public is demanding lower prices. Unseasonably warm weather has cut the customary demand for clothing for heavy wear. Furs, however, have been taken in volume, due to special sales and general price reductions. There are numerous complaints of quietness from stores in rural districts in the South, but Memphis, Louis ville and Little Rock reported fairly brisk Christ mas shopping. November figures of the leading department stores in the district show an ^veragc increase of 8.2 per cent over the same month in 1919 and 10.9 per cent in net sales over the preceding month this year. The disposition to economize is reflected in reports from miscellaneous activities, such as restaurants, places of amusement, and pur veyors of luxuries. The actual number of P^MMM at restaurants has not materially decreased, but t e size of the average check indicates curtailment m the daily food outlay. Receipts at places ^ ment and by dealers in luxuries show a falling o in a degree too marked to be accounted for by sea^ sonal change. Automobile dealers report no in their business, which is extremely ^P^ . Leading dealers throughout the district, especia y in St. Louis, have announced material cuts vice charges. Several southern points report slight decline in the price of bread, but &ene y this finished product has not followed the down ward movement of wheat and Hour. AGRICULTURE Climatically the agricultural sections of this district have rarely experienced more favorable weather conditions than during the past few weeks. Moisture has been sufficient to nourish planted grain crops and pastures. Winter wheat has progressed wonderfully well, its general condition showing far beyond the average for several years at this par ticular season. Rye also is in excellent shape. Husking of com is rapidly proceeding, though in some sections retarded by rain and stifT wage scales demanded by labor. Freezing weather is needed to put some of the crop in the best condition for cribbing. There are few complaints of mustv com, but the damage from wet weather is slight. Harvesting is virtually completed over the entire belt. Seeding of fall oats is about over, and indica tions point to an acreage well up to that of last year, though reports vary somewhat. Wherever possible the white potatoe crop has been stored, and in generally good condition, so that the tubers should keep well. Live Stock through the district continues in good shape. The low P^*ce ^ considered, however, the demand for ^ is not particularly strong. The supply of . is ample for all purposes, with some surpi spots. Weather has permitted of intensive wo farms and with live stock there having b^e ^ severe freezing. Cotton picking has been p / and ginnings to December 1 show up ^ p^hth estimated that 80 per cent of the crop i" Federal Reserve District is now out and in the warehouses and com presses. M ar conditions generally have not improved , "Wyoy. last thirty days, and in som e respects are less able than heretofore. Despite this fact cerea . ^ been moving in somewhat better shape, ^ facilities being better than at any time SHM war congestion set in. The demand for c w slow, and that staple is not moving well. I may be said relative to tobacco, prices ior are under what producers arc willing to accep The U. S. Department of Agriculture, in its report dated December 13, gives the estimated production of cotton for 1920, in four States of this district as follows: Pounds Lint 1920 Arkansas....................... 555,176,000 Mississippi................... 423,384,000 Missouri....................... 40,690,000 Tennessee..................... 148,335,000 Bates of 500 lbs. gross weight 5 yr. av. 1920 1919 (census) 1914-18 1,160,000 884,473 985,459 885.000 960,886 1,028,580 85,000 64,031 63,089 310.000 310,044 327,916 Price per Dec. 1 1920 13.3 15.3 13.5 13.0 !b. 1919 36.4 37.5 34.0 33.5 The following table, compiled from commercial sources for the Government market report, shows the cotton movement from August 1 to December 3. 1920 2,710,964 1,275,251 3,179,221 .1,543,053 .4,848,120 608,551 .1,168,462 4,435,467 Port Receipts............................................................. Port Stocks............................................................... Interior Receipts....................................................... Into SightSouthern Consumption___________________ World's Visible Supply of American Cotton... BALES 1919 2,937,450 1,552,500 3,341,182 1,325,993 5,207,636 1,075,838 1.455,303 4,414,209 The U. S. Department of Agriculture, in its report as of December 1, gives the condition of winter wheat in the seven states of this district as follows: Autumn 1920 Prelim. Arkansas ... 132,000 IHinois....... .2,470,000 Indiana. .1,953,000 Kentucky ... 625,000 Mississippi. ... 8,000 Missouri__ .2,820,000 Tennessee-... 470,000 ACREAGE SOWN Autumn Autumn 1920 1919 compared Revised with 1919 132,000 100% 2,600,000 95 2,170,000 90 625,000 100 15,000 53 2,820,000 100 470.000 100 Condition December 1 1920 1919 10 yr. av. 81% 89% 89% 82 89 86 79 88 82 80 88 84 88 89 85 84 88 90 75 88 80 Price Dec. 1 1920 1919 190c 202c 161c 210c 167c 210c 191c 211c 213c 250c 160c 209c 222c 195c The range of prices on typical products in the St. Louis market between November IS and December 15, with closing quotations on each of those dates, are shown in the following table: December Wheat.__ March W heat.......... December Corn____ May Com.. July Com_____ December Oats.. May Oats.. No. 2 Red W inter Wheat.. No. 2 Hard W heat______ No. 2 Com.. No. 2 White Com.. No. 2 White Oats Flour: Soft Patents_____J_____ - __ $9.50 Flour: Spring Patents____________ 8.75 Close Nov. 15 1.37% 1.74% .77%c .79%c .79%c .49c .54c 2.09 1.85 86c .86c .52%c $11.50 9.10 High $ 1.90% 1.79% 79c .81%c .81Rc .52%c .55%c 2.16 1.92 88c .89c * $11.50 9.85 Low $L53% 1.48 .64%c .68%c 70%c .45c .48%c 1.78 1.57 70c .70c 46%c 8.50 7.45 Close December 15 1.74 $ 1.63% .69%c .7 1 0 3 .71%c .49%c .48^c 2.02 1.75 .72c 74c .49c $8 90 @ 10.00 8.75 LABOR are more workmen than can be found employment Closing down of factories and the slowing in for. To date wage reductions are insignificant. In general industrial activities have resulted in the the milling and lumber industries cuts are reported development of a considerable labor surplus. While all through the list, but in other lines they have unemployment is much less marked in this district applied more to individuals. New workers taken on than elsewhere in the country, it has noticeably are usually receiving less money. In all lines invest increased during the past thirty days. Virtually all igated a marked increase in unit efBciency is re hnes of manufacture are affected, but in lumber, ported. OfBce forces in some industries and rail furniture, clothing, and metals the principal mani roads are being curtailed. festations are found. In the building trades there BUILDING ing November. Generally conditions in building Another radical slump, as compared with the remain about as they were at the close of the pre corresponding month last year, was shown in the ceding month. Architects, builders and contractors number and represented money ouday of building report more inquiries and feeling about prospective permits issued m leading cities of the district dur scarce money is another factor working against the clients, but few seem desirous of actually undertak placing of building contracts. Road building ia ing enterprises at this time. Aside from lumber and many sections of the district is being pushed, ad bricks, it is pointed out, materials going into con vantage having been taken of the open winter. struction are about as high as ever, and there has been no reduction in wage scales. Expensive and Comparative figures for November in leading cities of the district follow St. Louis............... Louisville............... Memphis________ Little Rock_____ Evansville.............. 1920 New Construction Cost Permits 259 $303,695 45 179,300 144 377,153 73,760 38 53,925 .. 57 NOVEMBER Repairs, Etc. Cost Permits $220,035 345 25.700 82 49,725 43 55.631 105 2,335 8 1919 New Construction, Repairs, Permits Cost 590 $2,834,670 146 373,650 129 495,000 111 214,773 ............... — .. COMMODITY MOVEMENT Receipts and shipments of important commodities at St. Louis during November, 1920 and 1919 and October, 1920, as reported by the Merchants* Exchange, were as follows: Nov. 1920 Flour, barrels............................... 291,730 Wheat, bushels............................3,320,730 Corn, bushels------------------------ 881,400 Oats, bushels............................... 1,918,000 Lead, pigs......... ........................... 214,080 Zinc and Spelter, slabs............... 408,560 Lumber, cars------------------------ 11,085 Meats; pounds-----------------------5,742,500 Fresh Beef, pounds..................... 796,500 Lard, pounds------------------------ 1,202,400 Hides, pounds..............................2,275,500 RECEIPTS SHIPMENTS Oct. 1920 Nov 1919__________ Nov. 1920 Oct. 1920 335,490 459,890 352.9!0 366,960 3,584,849 3,389,478 !.762.460 2,597,450 1,259,700 1,335,267 62!.600 694,960 2,200,055 2,898,000 1,659.080 1,146,100 210,700 268,600 94,170 127,790 490,240 354,300 617,840 657.580 12,239 12,316 8.021 8,735 5,337,700 5,587,000 25,581.000 25,774,600 1,346,200 3,005,900 24.748.400 22,244,900 1,507,300 3,029,900 5.418.100 6,221,800 2,057,700 2,733,600 6.056,500 4,072,200 Nov. 1919 574,240 2,915,730 678,970 2,032,345 188,520 617,840 10,006 27,622,100 29,608,200 8,973,400 7,896,200 LIVE STOCK General conditions obtaining in the live stock $11.90. Lambs at $11.75 to $12 are lowest since market were similar in most respects to those of 1917. These prices prevail in face of a shortage the preceding month. The trend in cattle and hog of live stock of all kinds, which fact is taken to prices is steadily downward, and are now lowest indicate that readjustment in the meat industry has in a number of years. Sheep and Iambs are like made broad strides. The demand for stock animals wise at a low ebb. Aged muttons now selling is slow, and according to ofKcials of live stock com around $5 brought at the corresponding time in mission houses, will hardly show much improve 1918 and 1919 around $9.40, and in 1917 sold at ment until market prices insure larger returns. As reported by the St. Louis National Stock Yards, receipts and shipments of live stock at S t Louis in November, with comparisons for November 1919, were as follows: Receipts............... Shipments______ Cattle & Calves 1920 1919 .131,866 155,575 . 50,178 59,070 Hogs 1920 1919 328,780 311,761 161,463 138,141 Sheep 1919 1920 56,409 46,293 10,272 8,717 Horses & Mules 1920 MM 2.782 3!.2M 2,992 27,726 FINANCIAL A further improvement in the genera! banking the greatest number of c!ients and take care of *"°? position of the district took place during the past pressing needs. More conservatism, however,^ thirty days. As was the case during the preceding reported in the matter of making !oans. There month, as set forth in this report, the improvement been no change in rates charged for conunera was represented almost entirety by changes in St. !oans. The commercia! paper market continues Louis financial institutions. In the country dis treme!y du!!, due entirely to absence of *ctiv!ty tricts, especially in the South where the chief prothe purchasing side, as offerings are in format ductions, tobacco, cotton, lumber and rice, are mov volume. Houses specializing in this line report D ing s!ow!y, obligations are not being !iquidated at ness sharp!y under that of the corresponds the pace customary at this particu!ar season, with period in 1919. Purchasing is confined to smaH M"** the result that the banks are still loaned up to near located in areas of diversified production. ^ f the fuH extent of their resources. The genera! de cia! institutions in the big cities, and '**, mand for credits shows !ittle abatement. A slight crop" sections And their resources too MMy easing up in the more popular centers is oRset by ployed in serving local customers to eater tnt heavy requirements in the country. Bankers are side investment market Rates are unchangea endeavoring to spread their funds, so as to serve 8 per cent. INTEREST RATES Between November 16 and December 15 the high, low and customary interest rates prevailing in St. Louis, Louisville and Little Rock, as reported by banks in those cities, were as follows: Customers' Prime Commercial Paper: 4 to 6 months.......................................................... Prime Commercial Paper purchased in open market: 30 to 90 days................................................................ 4 to 6 m onths.................................................................. Loans to other banks...................................................... Bankers' Acceptances of 60 to 90 days: Loans secured by prime stock exchange collateral or other current collateral: 3 me 3 to Cattle L IH St. Louis__________ Louisville_____ Little Rock L C H L C H L 7% 7% 6^ 6^ C 7 7 8 8 6 6 6 6 8 8 7 7 7-8 7-8 *8 8 6 8 8 6 7 6% 7 8 8 8 7 7 7 7-8 8 8 10 8 8 7 8-10 7-8 8 6^ 7 8 8 6 7 6% 7 6% 7 6% 6% 6% 6% 6% 6% 6% 8 8 8 8 7% 7 7 6% 6% 7 6% 6 7 7 7 7 7 7 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 CONDITION OF BANKS The condition of banks in this district, and changes since a month ago and last year, are reflected in the following comparative statement, showing the principal resources and liabilities of member banks of St. Louis, LouisviHe, Little Rock, Memphis and Evansville: Dec. 10. 1920________ Nov. 12, 1920________ Number of banks reporting.................................................. 35 35 U. S. Bonds, to secure circulation...................................... $ 16,221,000 $ 16,432.000 Other U. S. Bonds, including Liberty Bonds..................... 14,030,000 13,373.000 U. S. Victory Notes................................................................ 2,706,000 2,735,000 U. S. Certificates of Indebtedness...................................... 3,631.000 4,077,000 Total U. S. Securities owned........................................ $ 36,588,000 $ 36,617,000 Loans and investments, including bills rediscounted with F. R. Bank: Loans secured by U. S. W ar Obligations........................ 32,399,000 31,940,000 Loans securd by stocks and bonds other than U. S. W ar Securities.............................................................................. 127,530.000 127,261,000 399,692,000 All other loans and investments......................................... 381,993,000 Total loans and investments, including rediscounts with F. R. Bank................................................................$578,510,000 $595,510,000 Reserve with the Federal Reserve Bank........................ 40,923,000 40,350,000 Cash in vault............................................................................. 9,459,000 10,066,000 301,465,000 Net demand deposits on which reserve is computed....... 309,110,000 Time deposits................................. .......................................... 130,777,000 129,563,000 Government deposits.............................................................. 649,000 571,000 Dec. 12, 1919 35 $ 17,153,000 14,794,000 5,348,000 13,034,000 $ 50,329,000 34,707,000 154,142,000 333,574,000 $572,752,000 43,382,000 12,388,000 352,307,000 110,757,000 10,497,000 DEBITS TO INDIVIDUAL ACCOUNTS The following table, compiled from figures furnished by the several clearing houses, gives the total debits charged bv banks to checking accounts, savings accounts and trust accounts of individuals, firms, corporations and U. S. Government, also certificates of deposit, cashiers' checks and expense checks paid in the leading cities of this district during the past month, with comparisons for the preceding month and corresponding period a year ago. Charges to accounts of banks and bankers are not included. These figures are considered the most reliable index available for indicating actual spending by the public during the periods which they cover. Debits to depositors' accounts for four weeks ending: Dec. 15,1920 St. Louis.... ......$549,781,650 Memphis..... .................................................................... ...... 114,426,000 Louisville.... - .......................................... ............ 103,465,000 Little R o c k . I Z l .............................................. ............... 45,910,000 Evansville ............... .................................................................... 19,602,000 TO TAL________________________ ______________ $833,184,000 Nov. 17,1920 $574,349,006 126,630,000 108,283,000 44,411,000 21,811,000 Dec. 17,1919 $610,967,006 172,161,000 150,687,000 44,411,000 19,239,000 $875,484,000 $997,465,000 FEDERAL RESERVE OPERATIONS Discount rates of the Federal Reserve Bank of St. Louis have not been changed since the preceding issue of this report. In November this bank discounted $178,178,626 of paper for 299 member banks, which is a decrease of $30,259,216 under the amount discounted in October, and a decrease of 11 in the number of banks accommodated. Acceptances purchased in November amounted to $572,563, a decrease of $1,529,374 under the preceding month. , ^ ^ Between the dates November 12 and December 10 the net deposits of the Federal Reserve Bank of St. Louis and its branches increased $3,460,000, while an increase of $3,221,000 was shown in bills discounted for member banks. Federal Reserve currency in circulation decreased $3,625,000. The contingent liabili ty of this bank on paper rediscounted with or sold to other Federal Reserve Banks was reduced from $23,679,000 to nothing. The resources and liabilities of the Federal Reserve Bank of St. Louis on December 17, 1920, as com pared to a month ago and a year ago, are shown in the following statem ent: Nov. 19,1920 Dec. 19,1919 R E SO U R C E S: Dec. 17,1920 Gold Coin and Certificates.............................................. — ................. $ 2,879,000 Gold Settlement Fund—F. R. Board................................................- 20,590,000 Gold with Foreign Agencies.................................- .........- ............ — 3,184,000 $ 3.625,000 12.585.000 3.493.000 $ 2,853,000 13.909.000 6.473.000 /T o ta l Gold Held by Bank. ,............................................- ............ Gold with Federal Reserve Agent....................................................... Gold Redemption Fund........................................................ ................ 26,653,000 47,270,000 6,142,000 19.703.000 48.920.000 5.711.000 23.235.000 65.258.000 4.616.000 Total Gold Reserves........................................................- ............ 80,065,000 74.334.000 93.109.000 Legal Tender, Notes, Silver, etc....................................—.......... ....... 5,450,000 6.933.000 2.559.000 Total Reserves.................................................................................. 85,515,000 81.267.000 95.668.000 Bills Discounted: Secured by Government W ar Obligations....... Bills Discounted: All O ther........................................ ...................... Bills Purchased in Open M arket....- ................................................... 48,405,000 68,806,000 1,908,000 50.462.000 69.849.000 1.489.000 43.501.000 27.621.000 37.112.000 Total Bills on H and........................................................................ 119,119,000 121.800.000 108.234.000 U. S. Government Bonds....................................................................... U. S. Certificates of Indebtedness..................................................... 1,153,000 16,542,000 1.153.000 17.286.000 1.153.000 17.309.000 Total Earning Assets...................................................................... 136,814,000 140,239,000 126.696.000 Bank Premises..............................................................- .......................... Uncollected Items and other deductions from Gross Deposits..... 5% Redemption Fund against F. R. Bank N otes.............................. All O ther Resources............................................................................... 891,000 43,854,000 623,000 824,000 891.000 45.197.000 623.000 436.000 691.000 78.915.000 476.000 382.000 T O T A L RESO U R CES............................................................... -..$268,521,000 $268,653,000 $302,828,000 $ 4,364,000 5,884,000 $ 4,332,000 5,884,000 5 4,060,000 2.589.000 Government Deposits..................................................... ....................... 2 580 000 Due to Members—Reserve Account................................................. 63 293000 Deferred Availability Item s................................................................. ] 41 512000 O ther Deposits including Foreign Government Credits......- ........ 781^000 1.559.000 63.589.000 41.927.000 566,000 2,932^000 65.909.000 58.368.000 3.398.000 108,166,000 107.641.000 130.607.000 F. R. Notes in Actual Circulation..................................................... 136 374 000 F. R. Bank Notes in Actual Circulation—Net Liability............... 9^918^000 All O ther Liabilities................................................................................. 3'815]000 136.804.000 10.512.000 3.480.000 147.704.000 15.380.000 2.488.000 L IA B IL IT IE S : Capita! Paid in.. Surplus............... Total Gross Deposits.......................................... ........................... TO TAL L IA B IL IT IE S ............................................................... $268,521,000 Ratio of total reserves against net deposit and F. R. liabilities combined.............................................................................................. Contingent liability as endorser on paper rediscounted with or sold to other F. R. Banks.. Contingent liability on bills purchased for foreign correspondents 42.6% 7f%000 (Compiled December 18, 1920) $268,653,000 40.8% 16,739,000 752,000 47.8%
@FedFRASER