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Monthly Review
■ llim
Volume X X X
D S B D B H
B n D m
H
APRIL 1, 1948
B n B
Number 4
Deposit Growth and Ownership
At the close of 1947, total deposits in the com
mercial banks of the United States amounted to
$144 billion. Tw o years earlier, after the Victory
Loan, commercial bank deposits totaled $150 bil
lion. In December, 1941, just after we entered
W orld W ar fl, the commercial banks held $71 bil
lion in deposits.
The story of the wartime deposit gain and post
war contraction has been told in sufficient detail
in this Review and elsewhere so as to need no
great space here. It should suffice to point out
merely that the major factor of gain during the
war years was Treasury financing requirements
met by the banking system. Government security
holdings of the commercial banks rose $69 billion
between December, 1941 and December, 1945, while
loans expanded by $4 billion.
In the postwar years, the major factors in de
posit change were the using of Treasury surpluses
to retire maturing Government securities which
tended to reduce deposits, and the continued and
accentuated expansion in loans which tended to in
crease deposits. In 1946, deposits declined; in 1947,
they expanded, although they failed to regain their
previous peak.
The process of deposit expansion and contrac
tion is not generally understood and the major
reason seems to be confusion of the actions of an
individual bank with the banking system as a whole,
or vice versa. An individual bank receives its funds
from its depositors or its stockholders. For the
average bank more than nine-tenths of the funds
come from depositors who receive income and use
banks as a convenient place to hold their funds.
In this nation a portion of the deposits must be
held as reserve— the balance can be used by the
bank to lend or invest. An individual bank tends
to lend to its customers in response to demand for
credit and to employ the balance of its funds in
investments (disregarding sums above legal re
serves which are kept as cash). It cannot lend or
invest more funds than it has available. It can sell
investments to get funds for loans or it can take
its notes and sell them or use proceeds of maturing
loans to buy investments. But it cannot employ
more funds than it has.
Deposit expansion in the banking system takes
place as a result of the original loan or invest
ment because as the borrowers withdraw and spend
the funds advanced to them they go to others.
These, and the sellers of investments to banks, as
they receive the funds, usually deposit them with
other banks (or perhaps the same bank) and these
funds, less the required reserve, can be loaned or
invested by the other banks (or, again, the same
bank). If the funds are not redeposited, the process
stops. T o the extent that it continues, however,
the original funds become the basis for a multiple
expansion of deposits, which multiple depends on
the legal reserve ratio and the banks’ opportunity
and willingness to extend loans or make invest
ments.
Thus deposit growth for the banking system
stems from bank credit expansion. The individual
bank, however, is less interested in this process than
in the amount of deposits it receives from the proc
ess and which can be used to make loans or invest
ments on its own account. And the deposit level
at an individual bank depends on the flow of income
to its customers, the amount of their expenditures
which go to others not customers of the particular
bank, and the customers* decisions as to the form in
which they hold their funds.
Differences in deposit levels among banks and be
tween geographical areas thus reflect incomeexpenditure patterns of customers or residents of
the areas and their willingness to. hold funds in the
form of bank deposits.
There are various types of bank deposits. Most
bank deposits represent balances of individuals or
businesses. At present, of total deposits at commer
cial banks, about 60 per cent are in the form of de
mand deposits of individuals and businesses and 25
per cent in time deposits of these holders. The
remainder is in the form of U. S. Government bal
ances, deposits of states and political subdivisions
or interbank deposits.
It was noted earlier that total, deposits increased
from 1941 to 1945, declined in 1946, but increased
again in 1947. Non-Government deposits increased
in both 1946 and 1947. The decline in total de
posits in 1946 was due to the fact that the Treasury
drew down the huge W ar Loan balances built up in
the Victory Loan and used the funds to pay off
certain maturing issues. Part of these funds were,
in effect, returned to the banks in the form of pri
vate balances since nonbank holders, of the issues
paid off, deposited their receipts in banks. Private
deposits also expanded as a result of loan expansion
and other factors. In 1947, Treasury balances with
drawn from the banks represented only current cash
surpluses and were much smaller than the Victory
Loan accumulations. Deposit creation from loan
expansion and other factors, plus the funds obtained
by nonbank investors from the cash redemptions,
more than offset the Treasury withdrawals in 1947,
and total deposits as well as private deposits rose
in that year.
REGIONAL V A RIATIO N S IN D E PO SIT G RO W TH
In comparing regional differences in deposit
growth it should be remembered that the major
factors resulting in these differences are variations
in income-expenditure patterns of individuals and
businesses. Consequently it is the deposits owned
by individuals and businesses which should be con
sidered in the comparisons. Furthermore, it is the
action of the more volatile deposits that provides
the major variation so that, in effect, comparisons
are most pointed when demand deposits of indi
viduals, partnerships and corporations are used—
about three-fifths of total deposits at commercial
banks.
Page 46
The following table shows percentage changes in
such deposits at member banks in the 12 Reserve
districts between 1941 and 1947.
TABLE I
P E R C E N T A G E C H A N G E IN D E M A N D D E P O S I T S O P I N D I
V ID U A L S . P A R T N E R S H IP S A N D C O R P O R A T IO N S
AT A LL MEMBER BANKS
D e c., 1941D e c., 1941D e c., 1945D istrict
D ec., 1947
D ec., 1945
D e c., 1947^
Dallas .................... ......... ........... 4 -2 4 5 %
4 -1 8 7 %
4 - 2 0%
Kansas C ity............................... 4-241
4-179
4 - 22
M inneapolis .............................. -4-215
4-145
4 - 29
San F rancisco............................ 4-210
-j-187
4 -8
Atlanta ....................................... 4-20 7
4 ,1 7 4
4 - 12
St. L ou is..................................... 4-167
4-118
4 - 22
R ichm ond ........ ....................... .. 4-155
4-123
4 - 15
C hicago ....................................... 4-128
4 - 88
4 - 21
-j- 84
4 - 19
Cleveland ................................... 4-119
Philadelphia .........................
4-101
4 - 79
4 - 13
B oston ....................... ............... 4 - 8 0
-i- 60
4 -1 3
N ew Y o rk ............ ..................... -j- 67
4 - 47
4 - 13
A ll D istricts
4-120
4 - 90
4 - 16
The districts are arranged in descending order of
increase over the whole period.
The deposit
changes between December, 1941 and 1945 point to
the effect of war on the various Reserve districts.
Those between December, 1945 and 1947 reflect
postwar activity.
The major factors of income gain during the war
years were war manufacturing payrolls, other
manufacturing payrolls, Federal civilian payrolls,
military pay, allowances and allotments, and agri
cultural income. The rise of industry in the South,
Southwest and Pacific Coast, the location of mili
tary establishments in those same regions, and the
great increase in farm output and prices in the agri
cultural areas led to much larger-than-average in
come gains in those regions. And since the rise in
bank deposits reflects not only income changes but
the amount of income retained, the fact that taxes
and bond drives weighed less heavily on farm
areas than urban centers, and that farmers’ pur
chases of goods (farm implements especially) prob
ably were more retarded by shortages than urban
residents' purchases, led to larger deposit growth in
the less urbanized areas.
The St. Louis district ranked seventh among the
Reserve districts in wartime demand deposit gain.
It did not get as much of a boost from war activity
as the more southern and western areas, and its
gains from agriculture were tempered somewhat by
crop increases relatively less impressive (because of
weather) than those in the other farm districts.
Furthermore, one of this district's major cash crops
— cotton—was a relative late comer to the group of
farm products with large price increases.
Since the end of the war, however, deposit increase in Eighth District banks has been second
only to that in Minneapolis District banks. The
St. Louis region suffered less than most districts
from elimination of war production and from re
conversion dislocations. Farm income, of course,
held up well and the natural stability of the area
maintained much of its funds within its boundaries.
EIGHTH FEDERAL RESERVE
DISTRICT A REA S
Roman numerals indicate area.
Arabic numerals are indexes of
demand deposit change for
the area.
Top number is December, 1945
index.
Bottom number is December,
1947 index.
December, 1941 = 100
REGIONAL V A RIATIO N S IN DEPOSIT GROW TH
W ITH IN TH E EIGHTH DISTRICT
Table II shows dollar figures for demand deposits
of individuals, partnerships and corporations by dis
trict area on December 31, for the years 1941, 1945,
and 1947. The map shows the district areas and
T A B L E II
D E M A N D D E P O S IT S O F IN D IV ID U A L S , P A R T N E R S H IP S A N D
C O R P O R A T IO N S A T A L L E IG H T H D IS T R IC T
BANKS— BY AREA
(I n millions of dollars)
Area
D ec., 1947
D ec., 1945
D ec., 1941
I St. L ou is................................
...$1,142.0
$ 891.2
$ 558.2
I I Louisville ..............................
...
320.4
271.0
137.4
I I I Memphis ..............................
...
261.8
194.0
89.4
I V Little R o ck ............................
84.1
74.6
30.5
V Evansville ............................
75.6
29.9
T otal— M etropolitan Areas..
...$1,901.9
$1,506.4
$ 845.4
VI
V II
V III
IX
X
St. Louis ou tlying...............
Louisville o u t ly in g .............
N orth M is s o u r i....................
Ozark ......................................
South A rkansas....................
Total— Rural
...$
...
...
442.5
120.0
333.3
...
241.0
...
159.6
...
482.8
A rea s........................ .$2,450.5
Total— D istrict .................................. $4,352.4
$
371.5
106.0
291.0
225.3
224.6
338.1
157.7
426.7
$2,140.9 ~
$
$3,647.3
$1,513.3
$
124.5
36.6
92.6
58.3
67.5
132.5
37.9
118.0
667.9
for each area indexes of private demand deposits
with December, 1941 = 100. Taken together, table
and map illustrate regional differences in private
demand deposit growth since 1941 in the Eighth
District.
As pointed out earlier, differences in deposit
growth among regions reflect differences in income,
expenditure patterns, and choices of individuals
and businesses as to the manner of holding assets.
During the war period, high farm income plus
the flow of other income resulting from military and
war production activity led to relatively greater in
come gains in the rural regions than in the urban
centers.
At the same time, goods shortages
wreighed more heavily and taxes and bond subscrip
tions more lightly on the rural residents. The net
result was a larger spread between income and ex
penditure in rural regions than in cities, and deposit
Page 47
growth indicates that fact. Since the end of the
war, the situation has been reversed— goods have
become more plentiful and since most goods are pro
duced in cities, funds have flowed there. While
farm income has increased, other income factors
(especially those rooted in the war effort) have
fallen off somewhat in rural sections. Deposits in
these areas have grown but not as much as in the
urban centers.
Thus, between December, 1941 and December,
1945, demand deposits of individuals, partnerships
and corporations at all district banks in the rural
areas combined (V I through X III in table and
chart) increased 220 per cent, while those in the
metropolitan regions combined (I through V )
gained but 78 per cent. From December, 1945 to
December, 1947, private demand deposits in the
metropolitan regions rose 26 per cent and in the
rural areas but 15 per cent.
Taking the period as a whole, however, deposit
growth in the rural areas was still more than twice
as large, relatively, as in the urban centers. As a
result, the concentration of deposits in December,
1947 was 44 per cent in metropolitan areas and 56
per cent in rural areas, the exact reverse of the De
cember, 1941 pattern.
Metropolitan Areas— Demand deposit gains dur
ing the war years were especially marked in Evans
ville and Little Rock, which were the major war
boom cities of this district. Every metropolitan
district except St. Louis, however, showed a better
than metropolitan area average gain in those years.
Since 1945, deposit growth has been largest at
Memphis and St. Louis. The former city has ex
perienced pretty much of a postwar boom and the
flow of income into the St. Louis region in the past
two years reflects the return of that area to its pre
war position. Elimination of war plant activity in
Louisville and Little Rock has resulted in deposits
gaining appreciably less than metropolitan area
average in the past two years. The Evansville area
has managed to maintain its position pretty well
and still ranks ahead of any other district metropoli
tan area in deposit growth from 1941 through 1947.
Rural Areas— During the war years the rural area
which showed the smallest percentage gain in de
mand deposits was region X I, the Delta area. The
major factor in this situation apparently was the
fact that war production activity was not very im
portant in the Delta region, which is essentially
very rich farm land, and that its major crop— cot
ton— failed to yield the high income gains true of
other agricultural sections in the district. This in
turn reflected some relatively poor crop years and
Page 48
the fact that price rises in cotton came relatively
late in the war period.
Since the end of the war, the Delta area has
shown the most pronounced deposit gain among the
rural regions of the district, with the percentage
increase about twice that of the average for all
rural areas combined. Good cotton crops and the
sharp advance in cotton prices were the major fac
tors in this development.
In the other rural sections, those that showed
average or close to average gains in the postwar
years were regions VI, V II, V III, and X III. Gen
erally speaking, diversified agriculture and the in
flux of new small-scale industry into these areas
tended to maintain their rate of deposit growth.
The Ozark, south Arkansas and eastern MississippiTennessee areas showed relatively small deposit
gains between December, 1945 and December, 1947.
Mostly this was due to poor crop years, but partly
it reflected the closing down of military establish
ments and of war production plants.
Growth Differences by Size of Bank— The increase
in demand deposits during the war years was
greatest, percentagewise, at the smallest banks, and
decreased as the size of bank increased. This situa
tion reflected the fact that the smaller banks are
located primarily in the rural regions, and the fac
tors that led to increased deposit growth in those
areas naturally were expressed in growth at the
smaller banks. On the other hand, the big banks
are, of course, located in the major metropolitan
areas and deposit increases in those banks were in
fluenced by the factors applying to the metropoli
tan centers. The reverse of the situation holds for
the postwar period.
OW N ERSH IP OF DEMAND DEPOSITS
The preceding sections of this article deal with
deposits in the aggregate and with growth in those
deposits— by major type and by region. This sec
tion deals with demand deposits of individuals,
partnerships and corporations by type of owner.
As pointed out earlier, demand deposits of in
dividuals, partnerships and corporations represent
the bulk (about 60 per cent) of customers’ funds
held by the commercial-banks of the United States.
The owners of these funds, as the classification im
plies, are individuals (including farmers) and busi
nesses (either corporate or noncorporate). Prior
to the Federal Reserve surveys of deposit owner
ship there was little exact knowledge concerning
the ownership pattern of these deposits, and there
was virtually no information concerning shifts in
that pattern over a period of time.
This deposit category was the only major one
where ownership pattern was so largely undeter
mined. While more information about other de
posit categories would be helpful for better under
standing of the workings of the banking system,
the general patterns of ownership of the rest of the
deposits have been fairly clear for some time. Call
reports (and other data) provide a classification of
demand and time balances by interbank, U. S. Gov
ernment, state and other political subdivision, and
individual, partnership and corporation accounts.
The first three classes obviously indicate the owners
of the deposits. Time balances of individuals, part
nerships and corporations are believed to consist
almost completely of nonbusiness balances.1 But
the characteristics of ownership of the largest single
category— private demand balances— would be
largely unknown without the System surveys.
The importance of information on ownership of
private demand deposits is based on two major fac
tors. First, more precise knowledge of the pattern
of ownership and shifts in that pattern lead to a
clearer understanding of the effects of economic
developments on the banking system. Second, such
information provides detail useful in appraising the
future (as an oversimplified example— if business
activity is high and business balances low, substan
tial business borrowing might be anticipated).
These two factors are important for the three
major users (or potential users) of the information.
The supervisory authorities who are called on for
a host of definite policy decisions can make wiser
decisions on the basis of better and more extensive
information than ©n fragmentary and inexact
information. Students of banking (aside from those
connected with the supervisory authorities), while
not faced with the necessity for establishing policy,
can obtain a better understanding of the workings
of the banking system with this information. And
their studies often lead to better understanding by
the supervisory authorities and by the bankers
themselves of their problems and ways to meet
them. Finally, the bankers can apply the data on
ownership to their own cases— and can better un
derstand how economic events affect their banks.
Ownership Pattern in Eighth District Banks—
Table III gives estimates of ownership of demand
deposits of individuals, partnerships and corpora
tions in all Eighth District banks as of January 31,
1948. As can be seen, personal deposits constitute
just about half of all private demand balances in
banks in this district, with farmers’ balances ac
counting for almost one-third of the personal de
posits. Business deposits make up nine-tenths of
the nonpersonal balances; the remainder are held by
nonprofit organizations and trust funds of banks.
Among the business deposits, those owned by non
financial businesses make up the bulk, with manu
facturing and mining concerns’ funds and those of
trade establishments being by far the most
important.
TA BLE III
O W N E R S H IP
O F D E M A N D D E P O S IT S A T A L L
D I S T R I C T B A N K S , J A N U A R Y 31, 1948
A m ount
(M illions
T ype o f Depositor
of dollars)
Total D om estic Business............................................... ...$1,847.3
N onfinancial ................................................................ ... 1,643.2
510.3
M anufacturing and M ining.................................
Public U tilities .......................................................
751.9
205.1
53.7
150.4
55.4
155.0
2,114.4
624.6
1,489.8
P er Cent
of
T otal
44.3%
39.4
12.3
4.2
18.0
4.9
4.9
1.3
3.6
1.3
3.7
50.7
15.0
35.7
.......................................................................,..$4,172.1
100.0%
Insurance Companies ............................................
Other financial (including fo re ig n )..................
Other
...
...
...
.............................................................................. ...
Total
E IG H T H
This pattern reflects the general economic struc
ture of the district and it differs appreciably from
that of the nation as a whole. Business balances in
all banks in the United States account for over
one-half of all private demand deposits. Only in
trade establishment accounts as a percentage of
total private demand accounts do district banks ex
ceed those of the entire country— which reflects
mainly the underdevelopment of general business in
this area rather than the overdevelopment of trade.
Deposits of farmers are, relatively speaking, twice
as important in district banks as in the commercial
banks of the nation as a whole.
Information on deposit ownership obviously will
not provide all of the answers to all of the questions
on banking. But it throws light on an area where
information is needed, and, in conjunction with
other data on banking, is very useful.
As Chart I (next page) indicates, the deposit
ownership pattern varies appreciably among dif
ferent sizes of banks.2 Personal deposits, espe
cially those of farmers, are of much greater
relative importance in smaller banks than in
larger ones, as the smaller banks are located
mostly in rural areas where businesses are rela
tively unimportant and where business balances are
relatively small. But it should be noted that the
1 I t would be useful to know m ore precisely the proportions o f non*
business and business holdings o f time balances.
A lso it w ould be
useful to have inform ation on the proportions o f such deposits neld m
various size classes o f accounts and held b y various types o f individuals
(say. b y occu p ation ).
2 Banks are divided into size classes as of Decem ber, 1945, and held
in these classes. W hile there actually are shifts back and forth am ong
size classes, the holding o f the same size class for the different surveys
permits more understandable comparisons of shifts in deposit ownership
over a period o f time.
Page 49
CHART
I
DEMAND DEPOSITS AT
EIGHTH DISTRICT BANKS
O W N ERSH IP
P A T T ER N
JANUARY
BY
31,
S IZ E
1948
OF
BA N K
P ER C E N T
PER CENT
100
100
Under
S I Million
■
S I to
S 10 Million
Other
Personal
YfflZh
Other
Non Financial
S 10 to
S 5 0 Million
Farmers
Over
S 50 Million
Non Profit
T rade
Eighth
District
Financial
^VVN (incl. Trust Funds)
L*.Manufacturing
[•#*«*•] and Mining
{♦Personal includes farmers)
pattern of ownership in small rural banks is not
much different from that in small urban banks (ex
cept for farmers’ deposits), and the small urban
banks hold little more business balances relative
to total private demand deposits held than do the
small rural banks. In both cases personal deposits
constitute the bulk of private demand deposits held.
As size of bank increases, the importance of busi
ness deposits to the total increases. This state
ment also applies in general to the various classes
of business deposits— the only real exception being
balances of trade establishments, which seem to be
spread fairly uniformly among different size classes
of banks. For example, demand deposits of manu
facturing concerns account for only 2 per cent of
total private demand balances at the very small
banks (less than $1 million each in such deposits).
In the $1-$10 million class, manufacturing and
mining deposits constitute 6 per cent of the total, in
the $10-$50 million class 19 per cent of the total, and
in the over $50 million class 27 per cent of the total.
Just as striking is the variation in importance of
financial business balances—^from 1 per cent of the
total in the smallest banks to 14 per cent in the
largest banks.
Changes in Ownership Pattern— Chart II indi
cates that the pattern of ownership of demand de
posits of individuals, partnerships and corporations
at all Eighth District banks has changed very little
in the past two years. On January 31, 1948, deposits
of businesses (including trust funds of banks) con
Page 50
stituted 45.6 per cent of total private demand de
posits, those owned by individuals accounted for
50.7 per cent, and those held by nonprofit organi
zations were 3.7 per cent of the total. T w o years
earlier the proportions were 45 per cent, 51 per
cent, and 4 per cent. In February, 1947 they were
44.2 per cent, 52.2 per cent, and 3.6 per cent. Part
of the variation between last February’s and this
January’s patterns probably is due to differences in
survey dates.
At the end of January, 1948, private demand bal
ances at Eighth District banks were $158 million
higher than at the close of February, 1947, and al
most $500 million more than on January 31, 1946.
Practically all of the gain since February, 1947 was
in business balances and all types of business
shared in the increase. Nonprofit organization
accounts also registered a gain. Personal balances
were up only $17 million in the eleven months and
farmers’ balances were down during the period—
due mainly, as footnote three indicates, to differ
ences in survey dates. As compared with January, .
1946, business deposits were up $246 million in
January, 1948, and personal deposits up $241 million.
All types of business deposits showed an~increase
— February, 1947 to January, 1948— and in each
case, except manufacturing and mining, and public
utilities and transportation concerns, the per
centage gain was larger than that for all private
demand deposits. In other words, all types of
business balances, except the manufacturing and
mining, and public utility and transportation ac
counts, were of somewhat greater relative impor
tance in the total private demand deposit structure
on January 31, 1948, than on February 26, 1947.
All types of private demand deposits showed an
increase from January, 1946 to January, 1948, al
though, percentagewise, the gains varied. Among
nonfinancial businesses, only trade establishments
showed a larger percentage increase than the aver
age for all private demand deposits— the others
showed somewhat smaller percentage gains. Fi
nancial businesses (including trust funds of banks)
showed larger-than-average increases, while non
profit organization and personal accounts registered
less-than-average gains.
The chart also highlights the substantial shifts
that have taken place in relative importance of vari
ous types of demand balances since 1941 and the
end of the war. Business balances were much more
important relatively in 1941 than now. In dollar
terms business balances now are, of course, much
larger than in 1941 but they have grown less per
centagewise, reflecting both changes in income dis
tribution and changes in decisions on the part of
businesses and individuals as to the manner of
holding liquid assets. Considerable shift in im
portance of the various types of demand balances
also is evident since the end of the war, as busi
ness need for funds resulted in relatively smaller
gains in its accounts than in those of individuals.
Farmers’ balances have risen sharply in dollars
and in relative importance, reflecting increased
farm output at much higher prices.
The very small banks (less than $1 million each
in demand deposits of individuals, partnerships and
corporations as of December, 1945) showed a total
gain of $14 million in such deposits between Febru
ary, 1947 and January, 1948. This gain reflects in
creases in balances of farmers and of nonprofit or
ganizations, offset by declines in balances of non
farm individuals and of businesses. At the end of
January, 1948, total business demand balances at
these banks were only $1 million larger than on the
same date in 1946, while nonprofit organization ac
counts were up $6 million and total personal ac
counts up $55 million. The lion’s share of the dol
lar increase from two years earlier was in farmers’
balances.
The banks with $1 to $10 million in private de
mand deposits held more than half of all such de
posits in district banks. On January 31, 1948, these
banks had $51 million more in demand deposits of
individuals, partnerships and corporations than on
February 26, 1947, and had $219 million more than
two years earlier. The increase between February,
1947 and January, 1948, in balances of business and
nonprofit organizations accounted for the entire
gain in this period as personal demand deposits
showed a slight decline. The drop in personal de
posits reflects a decrease in farmers* balances, since
other personal accounts showed a gain, and appar
ently is due mainly to the fact that this year’s sur
vey date was a month earlier than last year’s. In
this district tobacco marketings swell farm balances
early in the year but sales run on through Febru
ary; thus the time factor probably influences the
level of farmers’ balances strongly.3
Relative to January, 1946 the deposit structure of
this size class of bank in January, 1948 showed a
slightly greater concentration of business balances
and a slightly smaller concentration of personal
accounts.
8 I t should be noted that farmers’ balances in all district banks co m
bined showed a drop from last February to January, 1948, but the
decline was concentrated in the $1-$10 m illion deposit class while farm
balances in the very small banks showed a rise. This situation appar
ently is due to the banking structure o f the district. The $1-$10 m illion
size class happens to contain m ore of the banks in the tobacco r e g io n ;
the .under $1 m illion size class has relatively fewer banks in that area.
A later date for this year’ s survey probably would show farm balances
up from a year earlier in both size classes.
DEMAND DEPOSITS AT
EIGHTH DISTRICT BANKS
OW N ERSH IP
40
20
PATTERN,
1941 - 1948
iii i I I
I I
December
July
1941
1945
Personal
■
(incl. Formers)
Non Financial
( * Includes oil non fincncial
January
1946
Non Profit
Trade
,raae
February
1947
40
20
January
. 1948
Financial
J (incl. Trust Funds)
MMm
Manufacturing
and Mining
for (941)
In the bank size class, $10-$50 million in private
demand deposits, such balances gained $27 million
between February, 1947 and January, 1948, and on
the latter date were up $63 million relative to Janu
ary, 1946. Practically all of the increase between
February, 1947 and January, 1948 was in business
balances, with personal accounts showing but a
slight increase and nonprofit organization accounts
a decrease. Measured against two years earlier,
the dollar rise in business balances was about
two-and-one-half times the increase in personal ac
counts.
About the same pattern of change was evident at
the very large banks—those with more than $50
million each in demand deposits of individuals,
partnerships and corporations. The total gain in
such deposits since February, 1947 was $65 mil
lion, and from January, 1946 was $152 million.
Business balances rose $53 million between Febru
ary, 1947 and January, 1948, nonprofit organization
accounts rose $7 million, and personal balances
increased $5 million. As against two years earlier,
business deposits on January 31, 1948 were up
$101 million, nonprofit organization accounts $8
million, and personal balances $43 million.
Frederick L. Deming
Norma B. Lynch
Page 51
SURVEY OF CURRENT CONDITIONS
The national economy continues to function at
a high level in terms of production, employment
and income, and there is little evidence that the
economic tug of war between inflationary and de
flationary forces is about to be resolved immedi
ately in favor of one side or the other.
On a national basis, industrial production in the
year to date has been maintained at about the same
level as in the last quarter of 1947. In some indus
tries temporary cutbacks in operations have oc
curred as a result of adverse weather conditions in
some of the major industrial centers. This factor
has been reflected to some extent in employment
and income and, in the affected areas, in consumer
buying.
The February decline in prices of agricultural
commodities, however, has failed to spread through
out the price structure and also has had little ap
parent effect on organized labor’s bargaining posi
tion with respect to wage negotiations. On the
other side of the picture is the fact that farm prices
are lower and that prices of commodities quoted
for future delivery continue to average consider
ably below the level prevailing in January and early
February.
In recent weeks a new factor has entered the
W H O LESALIN G
Lines of Comm odities
N et Sales
Stocks
Data furnished by
Bureau of Census
U. S. Dept, of Comm erce*
Feb., 1948
compared with
Jan., '48
Feb., ’ 47
Feb. 29, 1948
compared with
Feb. 28, 1947
A utom otive Supplies .......................... — 17%
D rugs and Chem icals.................. ...... — 5
Furniture ........................................
Groceries ........................................
Hardware ........................................ ....... 4 - 9
Plum bing Supplies .................... ....... 4 - 8
___ 9
T ob a cco and its P rod u cts.........
M iscellaneous ............................... ....... — 8
* *T otal all lines........................... ........... — 6 %
* Preliminarv.
** Includes certain items not listed above.
— 21%
4- 2
4-25
— 19
4- 7
4- 7
—
1
4- 3
4 - 2%
— 4%
—
—
4-11
4-33
—
4-11
4-18
4*21 %
PRICES
W H O L E S A L E P R I C E S IN T H E U N IT E D S T A T E S
bureau of Labor
Statistics
Feb., '48 com p, with
(1926 = 100)
Feb., ’ 48 Jan., '48 F eb., ’47
Jan., '48
Feb., 47
All Comm odities .. .. 160.7%
165.6%
144.5%
— 3.0%
4-11.2%
Farm Products.. .. 185.3
170.4
— 7.0
199.2
4- 8.7
Foods ................. .. 172.4
179.9
162.0
— 4.2
4* 6.4
Other ................. .. 147.4
4-14.7
128.5
— 0.5
148.1
R E T A IL F O O D
Bureau of Labor
Feb. 15,
Jan. 15,
Statistics
1948
1948
(1 9 3 5 -3 9 = 1 0 0 )
U. S. (51 cities).. .... 204.7
209.7
St. L ou is ............
217.2
L ittle R o ck ........ .... 206.1
211.4
Louisville .......... .... 198.0
200.1
M em phis ............ .... 224.5
230.7
Page 52
P R IC E S
Feb. 15, Feb. 15. '48 com p, with
1947 Jan. 15, '48 Feb. 15, '47
182.3
188.4
182.9
176.6
198.6
— 2%
— 2
— 3
_ 1
— 3
4 -12 %
4-13
4-13
4-12
4-13
economic situation— the swift movement of events
abroad and the sharp response of the people of the
United States to the changed international situa
tion. As a result of these developments the focal
point of public attention to a large extent has
tended to shift away from purely domestic economic
problems and toward the field of international af
fairs. The extent to which the business outlook
has been altered by the course of events abroad is
not yet clear. But if definite steps are taken toward
substantially increased military expenditures in
this country, we may see inflationary forces regain
some of the strength that at the moment seems to
be declining gradually.
EMPLOYMENT
Nonagricultural employment in the Eighth Dis
trict declined in February for the second consecu
tive month, largely reflecting seasonal cutbacks in
employment in wholesale and retail trade and in
some other nonmanufacturing industries. The de
crease in February, while contrary to the national
trend, was considerably less than the DecemberJanuary decline. The number of workers employed
in manufacturing establishments remained rela
tively stable during the first two months, although
a number of plants were idle temporarily as a re
sult of fuel gas and materials shortages. Agricul
tural employment also declined in February in the
district and nationally.
The employment outlook for the district for the
spring and summer months is for increased job
opportunities. Several large new manufacturing
plants are scheduled to come into production in
this period. In addition, increased employment is
forecast in the construction, public utilities, trade,
service, and agricultural industries.
In the St. Louis labor market area, nonagricul
tural employment in January, estimated at 680,000,
was 2 per cent higher than a year earlier but was
at the lowest level since last July. By May, 1948,
however, an increase of about 14,000 from the Janu
ary level is forecast by employers, principally in the
transportation equipment, construction, trade, and
service industries.
In the Louisville area, January employment of
200,000 was about 4 per cent higher than a year
earlier, with practically all of the increase due to
gains in the manufacturing industries. In the
Memphis area, nonfarm employment totaling 172,000 was only about 1 per cent higher than a year
ago, although considerable expansion is expected in
coming months. In the 12 month period employ
ment increased more, percentagewise, in the Evans
ville area than in any of the other major district
cities. Nonagricultural employment is estimated at
88,000 workers or 10 per cent more than were em
ployed a year ago. In the Little Rock area, em
ployment of 69,000 was about the same as in Jan
uary, 1947.
INDUSTRY
Industrial activity in the Eighth District in Feb
ruary was at a slightly lower level than in the
preceding month but gains over a year ago were
reported in most industries. Although the decline
in total production reflected the shorter work
month, output in a number of industries was at a
lower level than in January even when adjusted to
a daily average basis. Severe weather conditions
adversely affected production schedules in a num
ber of manufacturing plants. Logging operations
were curtailed considerably during a large part of
February as a result of weather conditions. On-site
construction activity was limited by the same fac
tor. Shortages of materials and parts, often a direct
result of the fact that production was curtailed in
suppliers’ plants due to fuel gas shortages, also af
fected industrial operations in February.
Consumption of electric power by industries in
the major district cities was lower in February
than in January, both in terms of total consumption
and when adjusted to a daily average basis. Total
consumption decreased nearly 8 per cent and daily
average consumption was 3 per cent less than in
January. On a daily basis, industries in Little
Rock, Memphis, and Louisville used slightly more
power in February than in January, whereas in St.
Louis, Evansville, and Pine Bluff, industrial con
sumption declined in the month. Compared with
February a year ago, all reporting cities showed
gains except Memphis.
Manufacturing— Operations in a number of manu
facturing industries declined in February, due in
large part to shortages of fuel gas in some of the
industrial areas. Seasonal declines occurred in
some industries including the meat packing indus
try. Basic steel operations were scheduled at a
lower rate than in January and decreases also were
indicated in the production of automobiles, chemi
cals, food products, metals and metal products, rub
ber products, stone, clay and glass products, and
transportation equipment. Among the major in
dustries whose operations were at a higher level in
February were the electrical equipment, machinery,
and iron and steel products industries.
Steel—Scheduled operations of the basic steel
industry in the St. Louis area in February were at
65 per cent of capacity as compared with 77 per
cent in January, and 74 per cent in February, 1947.
The decrease in operations in February was due in
large part to the fact that several open hearth
furnaces were out of production during the month
for maintenance and repairs.
Lumber—The adverse weather conditions that
prevailed during a large part of February sharply
curtailed logging operations in most of the dis
trict. Lumber production, however, was slightly
larger than in January, when output also was lim
ited by weather conditions, but was considerably
less than in February, 1947. Average weekly out
put of the southern pine industry increased frac
tionally during the month but was about 18 per cent
below that of a year ago. Reporting southern
hardwood mills operated at 78 per cent of capacity
compared to 76 per cent in January and 81 per cent
in February a year ago.
Whiskey—At the end of February, 45 of the 63
distilleries in Kentucky were in operation, as com
pared with 24 at the end of January and 60 at the
end of February a year ago. In January, production
of whiskey in Kentucky amounted to 2.6 million
gallons, nearly six times as much as was produced
in December when there were only a few distilleries
in operation. However, output in January was only
about 21 per cent as large as in the corresponding
month last year when production was at the high
est level of the year. Distilleries in Kentucky ac
counted for about 56 per cent of the total United
States output of whiskey in January.
INDU8TRY
C O N S U M P T IO N O F E L E C T R IC IT Y
F eb.,
Jan.,
F eb.,
F eb., 1948
(K .W .H . N o o f C u s - 1948
1948
1947
Compared with
in thous.)
tomers* K .W .H . K .W .H .
K .W .H .
Jan., ’ 48 F eb., ’47
7,453 R
8,849
8,048
— 9%
4- 8%
JSvansville ..... ... 40
3,372 R
4,345
4 - 30
4,368
Little Rock... ... 35
4- 1
__ 4
53,554 R
61,418
63,666
4 - 15
Louisville ........ 80
5,372
5,730
—
3
—
9
5,190
6,350
1,248
— 26
4-275
4,677
Pine B lu ff..... ... 24
74,642
62,743 R
— 10
67,267
... 99
4- 7
134,100 R
163,224
—
8% 4 - 13%
150,968
...309
* Selected industrial custom ers.
R— Revised.
L O A D S IN T E R C H A N G E D
Feb., *48
116,736'
S ource:
F O R 25 R A I L R O A D S A T ST. L O U I S
First N ine Days
Jan., *48 F eb ., ’ 47
M ar., ’48 Mar.. ’ 47 2 mos. ’48 2 mos. ’47
120,723
123,879
37,356
40,236
237,459
247,269
Term inal Railroad A ssociation of St. Louis.
CRUDE
(I n thousands
o fb b ls .)
F eb., *48
Arkansas .............. 87.3
Illinois ..................... 174.1
Indiana ................... 18.2
Kentucky .............. 26.0
Totals .................305.6
O IL
P R O D U C T IO N
Jan., *48
87.3
171.3
17.7
26.7
303.0
F eb., ’ 47
80.0
192.9
18.2
27.5
318.6
February, 1948
com pared with
Jan., *48
F eb ., *47
- 0 -%
4- 9 %
4- 2
— 10
4 -3
-0 — 3
— 5
4 - 1%
— 4%
P age 53
CONSTRUCTION
B U I L D I N G P E R M IT S
(M on th of February)
N ew Construction______
_____ Repairs, etc.
(C ost in
N um ber
Cost
Num ber
Cost
thousands)
1948
1947
1948
1947
1948 1947 1948 1947
E vansville ............
24
31 $
91 $
72
42
55 $ 41 $105
L ittle R o ck ............
80
92
1,498
419
110
105
116
45
Louisville ............
45
116
238
541
38
46 68
37
Memphis ............... 657
635
1,543
1,008
88
195
75
194
St. L o u i s ............. . 145
157
1,002
680
162
184
226
307
Feb. Totals.......... 951 1,031 $4,372 $2,720
440
585 $526 $688
Jan. T o t a ls ..........1,008 1,021 $5,087 $3,849
442
550 $572 $736
BANKING
C H A N G E S IN P R I N C I P A L A S S E T S A N D L I A B I L I T I E S
F E D E R A L R E S E R V E B A N K O F ST. L O U I S
Change from
M ar. 17,
Feb. 18, Mar. 19,
(I n thousands of dollars)
1948
1948
1947
Industrial advances under Sec. 13b........$..............
$ ........
$ ..........
Other advances and rediscounts..............
8,526 — 9,169 — 9,237
U . S. securities............................................... 1,124,851 — 8,412 + 26,243
Total earning assets................................. .$1,133,377 — $17,581 4-$17,006
Total reserv es..................................................$ 657,829
T otal d ep osits ..................................................
685,549
F . R . notes in circulation........................ . 1,099,166
Industrial com m itm ents under Sec. 13b..$
+ $1 4 ,0 3 4 +$18,570
—
1,429 + 25,923
— 9,885 +
9,045
580
- 0-
— $ 3,620
P R IN C IP A L ASSET S A N D L IA B IL IT IE S
W E E K L Y R E P O R T IN G M E M B E R BAN K S
_______ Change from
Mar. 19,
Feb. 18,
Mar. 17,
(I n thousands of dollars)
1947
1948
1948
Assets
—
$ 25,655
—
$
23,526
$2,078,849
T otal loans and investments.................
(Com m ercial, industrial, and agri
15,475 + 110,100
579,612 —
cultural loans, open market paper)..
Loans to brokers and dealers in
466
241 +
7,230 +
Others loans to purchase and carry
31,921
—
—
1,379
29,251
27,518
15 +
146,441 +
R eal estate loans........................................
199
724 —
1,717 +
36,206
236 +
185,187 +
15,638 + 142,170
T otal loans ............................................. , 949,438
30,982
59,406 4 - 20,394 +
Treasury bills ..........................................
18,032
4,202 —
104,381 +
Certificates of indebtedness...................
5,259 — 62,341
86,224
Treasury notes ...........................................
U . S. Bonds including guaranteed
732,391 — 28,274 — 118,944
obligations ................................................
510
1,049 +
147,009 +
O ther securities ........................................
167,825
7,888
T otal investments ................................, 1,129,411
39,007
751,153 +
15,811 +
Cash assets .................................................
409
986
24,078
Other assets ................................................
.$2,854,080 — $ 8,701 + $ 12,943
Liabilities
Dem and deposits— total ......................... ,$2,190,446
Individuals, partnerships, and cor
porations ............................................ . 1,410,116
614.466
Interbank demand deposits................ .
37,453
U . S. Governm ent deposits...............
128,411
Other demand deposits............ ..........
.
1,314,681
Dem and deposits— adjusted* ..............
T im e deposits ............................................ . 473,914
3,250
B orrow ings .................................................
16,210
Other liabilities ........................................
170,260
T otal capital accounts............................. .
Total liabilities and capital accounts....$2,854,080
-$
—
—
+
1,578
2,319
10,538
13,375
2,096
—
15,259
—
116
—
8,100
540
+
553
+
— $ 8,701
—$
500
73,944
+
44,989
— 35,694
6,239
+
55,965
+
14,069
+
8,750
440
+
7,684
+
12,943
+$
* Other than interbank and Government deposits, less cash items on
hand or in process o f collection.
D E B IT S T O D E P O S IT
(I n thousands
Feb.,
Jan.,
o f dollars)
1948
1948
$
21,162
17,619
E l D orado, A rk .......$
40,362
31,167
F ort Smith, A rk .....
8,749
Helena, A rk ..............
6,545
114,363
L ittle R ock , A rk .....
98,420
18,546
29,223
Pine B luff, A rk .......
Texarkana, A rk .-T ex .
7,863
10,207
A lton, 111....................
20,008
25,363
E .S t.L .-N a t.S .Y .,Ill.
92,620
128,607
Q u in cy, 111................
26,444
31,736
Evansville, In d .......
90,413
120,997
Louisville, K y ..........
517,043
441.851
O w ensboro, K y . . ..
25,928
31,568
Paducah, K y .............
12,946
16,016
Greenville, M iss.......
15,643
20,925
Cape Girardeau, M o.
9,254
11,721
H annibal, M o ...........
6,167
8,265
Jefferson City, M o...
44,565
52,612
St. Louis, M o ........... 1,,273,459 1,493,243
Sedalia, M o ...............
8,621
10,317
Springfield. M o ........
46,482
56,964
Jackson, T enn...........
14,410
17,589
Memphis, T enn .......
440,062
529.146
Totals ...................$2 ,749,033 $3,296,178
Page 54
ACCOUNTS
Feb.,
Feb., ’48 comp, with
1947
Jan., ’48 Feb., ’ 47
$
15,335
— 17%
+15%
— 3
32,289
— 23
7,146
— 25
— 8
92,107
— 14
+ 7
20,940
— 37
— 11
__ i
— 23
7,975
19,449
— 21
+ 3
87,187
— 28
+ 6
23,178
— 17
+ 14
77,555
— 25
+ 17
414,617
— 15
+ 7
26,202
— 18
— 1
12,251
— 19
+ 6
16,926
— 25
— 8
8,402
— 21
+ 10
6,108
— 25
+ 1
33,114
— 15
+35
1,191,652
+ 7
— 15
8,870
— 16
— 3
44,767
— 18
+ 4
13,901
— 18
+ 4
434,167
— 17
+ 1
$2,594,138
— 17%
+ 6%
Meat Packing— Meat packing operations in the
St. Louis area declined in February and, in terms
of the number of animals slaughtered under Fed
eral inspection, were at the lowest level since last
August. However, the number of animals slaugh
tered was 17 per cent larger than in February, 1947.
A total of 400,000 animals were killed under Fed
eral inspection during the month as compared with
505,000 in January and 342,000 in February last
year.
Shoes— District shoe manufacturing plants con
tinued to operate at a high level. In January, pro
duction was estimated at 8.7 million pairs according
to preliminary reports, an indicated increase of 4.8
per cent over the 8.3 million pairs manufactured in
December and 2.4 per cent larger than January,
1947 when output totaled 8.5 million pairs. Shoe
prices have held firm, the recent declines in prices
of hides and leather not yet being generally re
flected in lower prices at the retail level. One
manufacturer reduced prices on shoes for spring
deliveries but there has been no indication of lower
quotations for fall and winter items.
Mining and Oil— Daily average output of crude
oil was slightly larger than in January due to in
creases in production at fields in Illinois and In
diana. However, average output of 306,000 bar
rels daily was 4 per cent less than in February,
1947, the decline being accounted for by sharp re
ductions in output in Illinois and Kentucky as com
pared with a year ago.
Coal production in the district declined in total
and on a daily average basis, but was slightly
larger than in February, 1947. Total output is esti
mated at 10.5 million tons in February as com
pared with 11.6 million tons in January and 10.2
million tons in February last year. Although total
production in the month was 9 per cent less than in
January, larger-than-average decreases occurred in
Arkansas and western Kentucky where production
declined 11 per cent and 19 per cent, respectively.
Construction—The value of building permits
awarded in the major district cities in February to
taled $4.9 million as compared with $5.7 million a
month ago and $3.4 million in February, 1947. Dol
lar value of permits declined considerably in Louis
ville, Memphis, and Evansville as compared with
the previous month. In St. Louis the value of per
mits increased slightly and in Little Rock increased
by nearly 85 per cent, due to the issuance of a per
mit for construction of a million dollar memorial
stadium.
Value of new construction permits totaled $4.4
million, of which nearly one-half was for residential
buildings. Compared with the previous month,
value of new residential building declined consider
ably in all reporting cities. Measured in terms of
dwelling units, Memphis led the district with 194
family units. In Little Rock, permits were issued
for 59 new units; in Louisville 25 dwellings were
authorized; in Evansville 12 dwellings were author
ized ; and in St. Louis (city) after allowing for the
number destroyed by wrecking, 42 family unit9
were provided.
TRADE
The value of retail sales at reporting department
stores and men’s and women’s apparel stores in
February was less than in January, but furniture
store sales volume was slightly larger than in
the previous month. Department stores reported
an increase in dollar sales as compared with Feb
ruary, 1947, while at women’s apparel stores the
value of sales was approximately the same as a
year ago. Men’s apparel establishments, however,
reported a sharp decrease in dollar sales volume
as compared with last February.
Inventories generally increased during Febru
ary, on a value basis, continuing the upward trend
that began last Autumn, and were larger than at
the end of February, 1947. The year-to-year in
crease also reflects higher prices and the fact
that Easter occurred earlier this year than last
which necessitated building up stocks to a level
higher than in February, 1947.
Dollar sales volume at reporting department
stores in February was slightly less than in Jan
uary but was 6 per cent greater than in February,
1947. The month-to-month decline was contrary
to the normal trend in department store sales and
apparently resulted, to a large extent, from adverse
weather conditions which curtailed sales volume in
the early part of the months A resumption of con
sumer buying in the latter part of February boosted
sales volume for the first two months in 1948 to a
level 6 per cent above that in the comparable period
in 1947. In the first half of March, sales were
considerably larger than in the comparable period
last year, reflecting in part the fact that Easter
occurs earlier this year.
The value of inventories in reporting department
stores at the end of February, 1948, was 11 per
cent larger than at the end of January and 10 per
cent larger than at the end of February, 1947.
Manufacturers’ deliveries of seasonal merchandise
are reported as being on time and in better volume
than anticipated. As an indirect result, outstanding
TRAD E
DEPA RTM EN T STORES
N et Sales
Stocks on
H and
Stock
T urnover
2 m os.
1948 Feb. 29, 1948
F eb., 1948
Jan. 1. to
com pared with
to same com p, with
Jan.,
Feb. 28, last day in Feb.
F eb.,
period
1947
1948
1947
1948
1947
1947
.60
.58
.— 5 %
— 1%
4 -1 3 %
— 1%
. .69
.60
— 2
— 2
4-26
..4- 6
Q uincy, 111.
4-32
.52
.57
-f- 8
4- 5
"+ 2
.47
.50
4-22
4-18
4- 7
••4- 2
.65
.64
4-11
>•4- 3
4*13
+ 1!
.57
St. Louis Area1..
.60
6
+ 7
4- 9
4- 2
.61
.57
6
4 -6
4- 8
4- 1
..— 5
4-64
4-52
Springfield, M o.
7
"VJs
’“ .*52
+21
4- 3
4- l
— 2
Memphis, Tenn.
+23
.63
.51
..4- 8
4- 2
*A11 other cities
.40
.50
— 2
+30
. - 0 4- 1
8th F. R . Distrk
.59
.58
1
+10
4- 6
4- 6
* E l Dorado, Fayetteville, Pine B luff, A r k .; H arrisburg, Jacksonville,
Mt. Vernon, 111.; N ew A lbany, Vincennes, I n d .; Danville, H opkinsville,
Mayfield, Paducah, K y . ; Chillicothe, M o .; and Jackson, Tenn.
1 Includes St. Louis, M o.,. East St. Louis, A lton and Belleville, I1L
Trading d a ys:
February, 1948— 2 4 ; January, 1948— 2 6 ; February,
1947— 24.
Outstanding orders o f reporting stores at the end o f February, 1948,
were 2 per cent less than on the corresponding date a year ago.
Percentage o f accounts and notes receivable outstanding F ebruary 1,
1948, collected during February, by cities:
E xclud ing
E xcluding
Instalm ent Instalm ent
Instalm ent Instalment
A ccoun ts A ccoun ts
A ccou n ts A ccoun ts
F ort S m it h ...............%
4 7%
Q u in cy ............
2 6%
5 9%
Little R ock .... 24
48
St. L ouis ........ 30
51
Louisville ........ 24
48
O ther cities .... 20
57
Memphis .......
25
42
8th F . R . D ist. 27
48
IN D E X E S O F D E P A R T M E N T S T O R E SA L E S A N D STO C K S
8th Federal R eserve D istrict
Sales (daily average), U n a d ju sted 2........ ..........
Sales (daily average), Seasonally a d ju sted 3..
Stocks, Unadjusted * .......... ........ ........................
Stocks, Seasonally adjusted 8..............................
* Daily A verage 1935-39 = 100
8 End o f M onth A verage 1935-39 = 100
F eb.,
1948
258
307
298
331
Jan.,
1948
239
291
265
308
D ec.,
1947
S16
337
250
297
Feb.
1947
244
290
266
296
S P E C IA L T Y
STORES
Stock
Stocks on
T urnover
H and
2 m os.
1948 Feb. 29, 1948
F eb ., 1948
Jan. 1, to
to same com p, with
com pared with
Feb. 29,
period
Feb. 28,
Jan.,
F eb.,
1948
1947
1947
1947
1948
1947
.49
.42
4%
M en's Furnishings....— 13%
— 11%
4-18%
.58#
.56
8
B oots and Shoes......— 9
4* 9
4- 8
Percentage o f accounts and notes receivable outstanding February 1,
1948, collected during F ebruary:
M en's Furnishings ....................... 50%
B oots and Shoes........................ 4 2%
Trading d a ys: February, 1948-—2 4 ; January, 1948— 2 6 ; February,
1947— 24.
N et Sales
R E T A IL F U R N IT U R E STO R E S
N et Sales
Inventories
F eb., 1948
R atio of
F eb., 1948
com pared with
Collections
compared with
Jan .,’ 48 F eb .,’47 F e b .,*48 F eb.,'47
Jan.,'48 F eb.,'47
2 3%
3 6%
+ 12%
+29%
St. Louis A rea 1-M u %
4-1 / %
3S
+12
+29
22
+18
St. Louis..~....~ 4-11
17
26
+30
+21
Louisville Area*.. + 1 3
+ 2
+37
+19
25
16
Louisville ........ + 1 8
+ 2
— 6
— 2
— 40
18
23
Memphis .............. — 16
31
— 7
— 9
23
L ittle R o ck .......... — 20
+ 1
+18
32
21
8th District T o ta l8 4
4
4
+- 5
+- 7
+ - 77
1 Includes St. L ouis, M issou ri; E ast St. L ouis and A lton , Illinois.
2 Includes Louisville, K e n tu ck y ; and N ew A lbany, Indiana.
3 In addition to above cities, includes stores in Blytheville, F o rt Smith
and Pine Bluff. A rkansas; O w ensboro, K e n tu ck y ; Greenville, Green
w ood, M ississippi; H annibal and Springfield, M issouri; and Evansville,
Indiana.
PERCENTAG E
D IS T R IB U T IO N O F F U R N IT U R E
F eb., '48
Jan., '48
Cash Sales ...........................................
16%
66%
Credit Sales ...........................................
84
34
Total Sales ....................... .......... .
100%
100%
SALES
F eb., '47
6 7%
33
100%
Page 55
Additions to the Par List
Since the first of this year, eleven non-member
banks have been added to the Federal Reserve
Par List in this district, bringing the total number
of par banks in the Eighth District to 1,116 of
which 621 are non-member banks. All member
banks remit at par.
Two of the eleven banks are newly-chartered
institutions, the Paducah Bank, Paducah, Ken
tucky, and the Farmers and Merchants Bank of
Memphis, Memphis, Missouri. The other nine
banks are:
Rutherford Bank, Rutherford, Tennessee
Mason Hall Bank, Kenton, Tennessee
Farmers Bank, Trimble, Tennessee
Bank of Yorkville, Yorkville, Tennessee
Warren Bank, Warren, Arkansas
Merchants and Planters Bank, Warren, Arkansas
Citizens Bank of Jonesboro, Jonesboro, Arkansas
Mercantile Bank, Jonesboro, Arkansas
Peoples Savings Bank, Licking, Missouri
orders, in value, are slightly less than in February,
1947, but still equal about three months’ sales.
At women’s apparel stores, the value of sales
in February declined 5 per cent from January but
was little changed from February, 1947. Current
deliveries of spring ready-to-wear apparel are re
ported to be satisfactory, and inventories at the
end of February were 4 per cent larger than a
month earlier and 10 per cent higher than in Feb
ruary, 1947, on a value basis.
The value of sales at reporting men’s wear stores
declined 13 per cent in February from the pre
vious month and was 11 per cent less than in
February last year. For the past few years, sales
volume was restricted by incomplete lines of the
major items of men’s ready-to-wear. While this
situation largely has been corrected, dollar sales
have been bolstered by higher prices. Inventories,
in terms of value, increased 27 per cent during the
month and were 18 per cent larger than on Feb
ruary 28, 1947.
Weather in the Eighth District through the first
half of March has been unfavorable for early spring
work. Although the planting season is still young,
the early weeks can be decisive, as witness the
unfavorable spring last year when there were very
few days that oats could be seeded after March 15.
Some of the best yields of oats were obtained from
fields planted before that date. Field work in the
mid-South also was delayed due to cold, wet
weather through March 9. For example, planting
of truck crops was held up as much as two weeks
in the lower Mississippi Valley.
Agricultural prices steadied during the last half
of February and strengthened in early March,
after declining from 307 per cent to 279 per cent
of the 1910-14 average between January 15 and
February 15. The index of prices paid declined
only slightly, from 251 in January to 248 in Feb
ruary, and this was due largely to decreases in
prices of the agricultural products farmers buy,
such as feed and food. Even with the slump in
prices during January and February, farmers are
expected to receive $6.4 billion from farm market
ings in the first quarter of 1948, 6 per cent more
than in the first three months of 1947. The gain
will be realized because of increased livestock re
ceipts which are expected to be up about 10 per
cent, while crop receipts probably will remain about
the same as during the first part of last year.
The 36-nation wheat council during the first
week of March reached an agreement under which
the three exporting nations— Australia, Canada,
and the United States— will ship to the 33 import
ing nations 500 million bushels of wheat each year
for a five-year period. Of this amount, Canada
is to supply 46 per cent, the United States 37 per
cent (185 million bushels), and Australia 17 per
cent. Russia and Argentina, both exporting coun
tries, did not take part in the conference.
AGRICULTURE
Prospective production of small grains in the
United States remained about the same through
February and the first half of March. No official
wheat production estimate will be available before
April 9, but thus far it appears that the December
estimate of 1.1 billion bushels will be reached.
Wheat in the southern part of the wheat belt, as
far north as central Illinois, was greening by midMarch and apparently the crop has come through
with relatively little winter killing. On the plains,
however, where wheat was planted very late last
fall, favorable weather throughout the remainder of
the growing season is a “ must” if a good crop is
to be made.
Page 56
AGRICULTURE
S H IP M E N T S A T N A T IO N A L S T O C K Y A R D S
Receipts
Shipments
F eb..
F eb ., *48 com p, with Feb., F e b .,*48 com p, with
1948
Jan., ’ 48 F eb., *47
Jan., *48 F e b .,'47
1948
19,363 — 31% — 58%
Cattle and calves..l 32,422 4 - 28%
4 - 2 1%
— 6
H ogs .................. 205.891 — 22
54,901 — 22
4 - 20
— 24
Sheep ................... 29,191 — 29
2,313 — 60
— 82
1,556 4 - 1
H orses ................. 1,556 4 - 1
— 55
— 55
Totals ........ -----369,060 — 10% 4 - 14%
78.133 — 27% — 36%
R E C E IP T S A N D
CASH
Jan.,
(I n thousands
of dollars)
1948
Arkansas ....... ...$ 25,427
Illinois ......... .... 172.998
Indiana ......... ... 81,447
Kentucky ..... ... 83,659
Mississippi ... ... 24,345
M issouri ........... 84,080
Tennessee .....
Totals ....... ...$521,248
F A R M IN C O M E
Jan. ’ 48
com p, with
12 mo.
Jan.,
D ec.,
1947
1947
47-*48
— 54% — 21%
$ 483,428
— 3
4-14
1,917,573
— 18
4-18
1,092,423
— 34
— 29
544,434
— 59
— 29
463,665
— 25
4- 4
1,084,190
— 25
— 5
483,239
— 2 5% — 3 % $6,041,952'
total Feb. to Jan.,
’ 47-’48 com p, with
’ 46-’ 47 ’45-’ 46
4 -5 5 %
4- 9%
4-58
4-29
4-56
4-2 7
4-32
4-15
4-40
4-48
4-52
4-22
4-43
4-18
4*50%
4 -24 %
@FedFRASER