Full text of Review (Federal Reserve Bank of St. Louis) : April 1953

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Monthly m
April, 1953

1 9 5 3

Volume X X X V

w

Number 4

r

u r v e y or D e p o s it O w n e r s h i p

S

The 1953 Survey of Deposit Ownership in the Eighth Dis­
trict shows significant increases in demand deposits of (1)
individuals, (2) financial concerns, and (3) nonprofit organi­
zations. On the other hand, it shows that farmers drew down
bank balances and business concerns lost ground relative to
the total of surveyed deposits.
On the basis of geographic divisions, deposit growth yearend to year-end was shared in by all but two of the thirteen
survey areas — Springfield and an Indiana-Kentucky area.
Substantial growth was recorded for Evansville and in the
area around Paducah. Over-all, there was little difference
between metropolitan and rural deposit growth rates.

M e mber Bank Earnings and Expenses




1952 was a year of all-time highs for Eighth District mem­
ber banks in earnings, expenses, and net current earnings
from operations. Total incoming funds subject to disposition
by bank management (net current earnings plus recoveries
and reserve adjustments) reached $70.5 million. Income
taxes took the biggest share of these incoming funds. Stock­
holders received a lesser proportion and a smaller amount
remained to strengthen capital accounts. Losses and chargeoffs were high in dollar amount.

Fede

B an k
o f St. Louis

The 1953 Survey o f Deposit Ownership in the
Eighth District shows significant increases in
demand deposits o f ( 1 ) individuals, • . .
"T \E P O SITS in the Eighth Federal Reserve District have undergone significant changes in
ownership and volume during the past year. These
changes reflect many of the trends felt by business
and agriculture and thus shed further light on the
district economy and its relationship to the banking
community.
The 1953 Survey of Deposit Ownership was con­
ducted by the Federal Reserve System with the
cooperation of member and nonmember banks. It
covers demand deposit holdings of individuals, part­
nerships, and corporations (about three-fifths of all
demand and time deposits) within the Eighth
District.
The most significant change in deposit ownership
disclosed by the 1953 Survey was the growth in
personal deposits, other than farmers’. Individuals
had more “ cash in the bank” and a larger share of
the demand deposits surveyed than last year.
Growth in these deposits exceeded $100 million and
amounted to 7 per cent in the year period. During
the previous survey year these deposits increased
much less and lost ground relative to the total.
Generally, personal savings channeled into the bank­
ing system take the form of time deposits. This
year’s expansion suggests that a part of the con­
tinued high level of personal saving in the district
took the form of additions to demand, as well as to
time, deposits. In fact the percentage increase in
personal demand deposits (other than farmers’) at
all banks in the district exceeded slightly the per­
centage gain in time deposits at all district member
banks— 7 per cent as compared with 6 per cent.
. • . ( 2 ) financial concerns9 . . .
Deposits of financial concerns increased about
$33 million (12 per cent) over the survey year and
accounted for a somewhat larger proportion of the
total in the 1953 pattern than in 1952. This growth,
like that of individuals’ demand deposits, is probably
related to the continued high level of personal sav­
ing, particularly in the form of life insurance pay­
ments (net) and purchases of shares in savings and
loan companies and credit unions. It also reflects
increased activity on the part of sales finance
companies.
. . . and ( 3 ) nonprofit organizations.
Nonprofit organizations, such as hospitals, com­
munity chests, and religious organizations, ex­
panded their deposit holdings, absolutely and as a
share of the total of surveyed deposits. The increase
in these deposits, amounting to $18 million (about
Page 38




10 per cent), reflects the growth in personal incomes
and, to some extent, the higher effective tax rates
in 1952 over 1951, which encouraged giving.
On the other hand, it shows that farm ers drew
down bank balances . • •
Counter-balancing these expansions in deposit
holdings and in the proportionate shares of the total
of deposits, there were two important downward
movements over the survey period. The more im­
portant of the two came in farmers’ deposits.
Farmers had less money on deposit with banks
January 31, 1953, than they did a year earlier. The
1953 estimates show a decline in farmers’ deposits
of $9 million over the year period, and a shrinkage
of nearly one full percentage point in farmers’ share
of the total.
The decline in farmers’ deposits is not surprising
in view of the drop in prices received and the pricecost squeeze suffered by agriculture during 1952.
The moderateness of the decline— a little over one
per cent— suggests that greater output on district
farms helped alleviate the burden in many cases
despite flood and drouth damage in certain areas.
. • . and business concerns lost ground relative
to the total o f surveyed deposits.
Deposits of nonfinancial business concerns were
off with regard to the pattern of ownership,
although up from the level of the previous survey
by some $45 million. The significant contraction
in relation to the total of deposits came in the trade
category and appeared to be influenced by the
less-than-usual volume of cotton financing by
banks at Memphis during the last quarter of 1952.
Net repayments of trade loans, particularly in the
wholesale field were probably influential too. The
decline in the percentage share of manufacturing
and mining concerns is larger than that shown for
trade accounts but is partly the result of changes in
the sample of reporting banks.
The broad changes in patterns of ownership
of deposits shown by the 1953 Survey contrast with
those indicated by the previous one. Then, the
increase in deposits over the year period favored
business and farmers. During the 1953 Survey year,
as has been noted, the growth in deposits flowed
chiefly to individuals and financial institutions. Busi­
ness concerns got some of the increase, but lost
ground in terms of their share of total deposits.
And farmers’ deposits were actually reduced. The
patterns of ownership established by the survey
for January 31, 1953, and January 31, 1952, together
with the change between these two dates and those
of a year ago are shown in Table I.

TABLE I
O W N E R S H IP O F 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 ll Banks in E ighth Federal Reserve District
<Dollar amounts in millions)

January, 1953
Am ount
Per Cent

January, 1952
A m ount
Per Cent

Corporate business.............................
Noncorporate business.....................
To ta l business.......................................

$1,479.3
839.5
2,318.8

Nonfinancial......................................
M anufacturing and mining..
Public utilities............................
Trade...............................................
Other nonfinancial....................

2,006.4
644.4
219.5
868.6
273.9

40.8
13.1
4.4
17.7
5.6

1,960.5
645.4
203.0
851.6
260.5

Financial.............................................
Insurance companies................
A ll other financial.....................

312.4
80.7
231.7

6.4

1.7
4.7

T rust funds of banks.......................
Foreign.....................................................
Nonprofit..................................................
Personal....................................................
Farmers................................................
Other.................................................... .

56.2
**

1.1
*

201.2
2,337.5
659.2
1,678.3

4.1
47.6
13.4
34.2

T otal..................................................

$4,913.7

3 0 .1 %
17.1
47.2

$1,403.2
837.0
2,240.2

10 0 .0 %

+
+
+

3%
16
7

+
2
- 0+
8
+
2
+
5

+ 133.8
+ 23.8
+
4.9
+ 82.2
+ 22.9

+
+
+
+
+

7
4
2
11
10

32.7
16.2
16.5

+
+
+

12
25
8

+
—
+

+
—
+

8
1
11

1.3
**

+

2

76.1
2.5
78.6

+
5%
- 0+
4

41.6
13.7
4.3
18.1
5.5

+
—
+
+
+

45.9
1.0
16.5
17.0
13.4

279.7
64.5
215.2

5.9
1.4
4.5

+
+
+

54.9
0.1
183.5
2,234.0
668.5
1,565.5

1.2
*

+

3.9
47.4
14.2
33.2
1 0 0 .0 %

Change
Jan. ’ 51 - Jan. '52
Per Cent
Am ount
$ + 38.7
+ 116.4
+ 155.1

$+
+
+

$4,712.7

2 9 .8 %
17.7
47.5

Change
Jan. ’ 52 - Jan. *53
Am ount
Per Cent

+ "io

+ 17.7
+ 103.5
—
9.3
+ 112.8

+
—
+

5
1
7

$ + 201.0

+

4%

21.3
0.8
22.1

—
0.1
—
0.2
+ 14.1
+ 101.2
+ 43.4
+ 57.8
$ + 270.1

- 0+ *"*8
+
5
+
7
+
4
+

6%

*L ess than 0 .0 5 %
**L ess than $100,000

On th e

b a sis o f g e o g r a p h i c d iv is io n s , d e p o s it
g r o w th y e a r -e n d to y e a r - e n d w a s s h a r e d in b y
a ll b u t tw o o f t h e th ir te e n s u r v e y a rea s—
S p r in g fie ld a n d a n In d ia n a -K en tu ck y a r ea .

Another way in which the data have been an­
alyzed in this and previous surveys is in terms of
geographic areas.1 The growth in deposit volume
during 1952 was shared by all but two of the
thirteen survey areas comprising the Eighth Dis­
trict and was about equally divided between the
group of metropolitan and the group of rural areas.
The two areas with virtually no deposit growth
from year-end 1951 to year-end 1952 were Area V I,
metropolitan Springfield, and Area IX, southeast­
ern Indiana and eastern district-Kentucky. Spring­
field, the new addition to metropolitan areas in the
district according to Census definition, has the
lowest proportion of income payments to individuals
T A B L E II
C H A N G E S IN 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 ll Banks in Eighth Federal Reserve D istrict B y Areas*
(D ollar amounts in millions)

I
II
Ill
IV
V
VI

V II
V III
IX
X
XI
X II
X III

Change from
1945 to 1952
A m ount
Per Cent

St. Louis............................ . .. $ +
Louisville............................... ..
+
M em phis................................ ...
+
Little R ock........................... ...
+
Evansville............................. ...
+
Springfield............................ ..
+

570.0
127.3
114.4
36.3
40.2
11.8

Total—
Metropolitan A reas...... .. $ +
Corn Belt Farm ing........... .. $ +
Coal, Chemicals and Oil.....
+
Tobacco and Livestock...
+
Ozark R egion...................... ..
+
Lum ber and O il................. ....
+
Delta Cotton and Rice.... ... +
Cotton and Livestock...... .,
+
Total— Rural Areas.......... .. $ +
Total— D istrict.................. ..

+
+
+
+
+
+

64%
47
59
49
62
28

$+
+
+
+
+
+

64.2
16.1
10.2
8.0
17.1
0.2

900.0

+ 59%

$+

115.8

+

5%

167.2
111.4
53.0
40.7
31.3
97.8
37.8

+
+
+
+
+
+
+

35%
28
20
13
23
39
14

$+
+
+
+
+
+
+

21.7
37.9
1.2
12.5
8.1
11.4
17.2

+
+
- 0
+
+
+
+

3%
8
4
5
3
6

539.2

+ 26%

$+

110.0

+

4%

$ + 1,439.2

+ 39%

$+

225.8

+

5%

* Areas are newly defined as described in the text.




Change from
1951 to 1952
Am ount
Per Cent
+
+
+
+
+
-0

5%
4
3
8
20
-

arising from labor and the highest proportion aris­
ing from farm proprietorship of any of the district’s
six metropolitan areas. Area IX, designated the
Tobacco and Livestock Area, has relatively little
industrial development except along the Ohio River
and was hit by the agricultural price decline and by
the drouth in 1952.

S u b sta n tia l g r o w t h w as r e c o r d e d f o r E van sville
a n d in t h e a r ea a r o u n d P a d u ca h .
The sharpest rate of increase occurred in metro­
politan Evansville and reflected improved indus­
trial activity and employment levels there in 1952
as compared with a year earlier. The top rate of
growth (8 per cent) among non-metropolitan areas
came in Area V III, the coal and oil producing region
of Illinois, Indiana, and Kentucky which embraces
the large industrial development along the Ohio
River centering around Paducah.

O ver-a ll , t h e r e w a s little d i f fe r e n c e b e tw e e n
m e tr o p o lita n a n d ru r a l d e p o s it g r o w th r a tes .
Notwithstanding the variations in percentage
gains over the year 1952 as between areas, the rural
areas as a group gained 4 per cent, very close to the
5 per cent gain for metropolitan areas, with the
slight decline in farmers’ deposits helping explain
the secondary position of rural area growth. The
l Th e deposit areas are now combinations of economic areas of the
Bureau of the Census. A t the same time, the new areas are closely
related to those previously used, which combined counties partly by
similarity in deposit growth from 1941-43, partly by trade channels, and
partly by production characteristics. The new deposit areas are also
related to production regions and revised income areas defined by this
B ank (September, 1952, M on th ly R ev ie w ) f
The 13 deposit areas are now composed of 6 metropolitan and^ 7 other
areas. T h e metropolitan areas a re: St. L ouis, Louisville, M em phis, Little
R ock, Evansville, and Springfield. The other 7 can be identified according
to the following brief and broadly descriptive n a m e s:
Area V I I
Corn Belt Farm ing
Area V I I I
Coal, Chemicals, and O il
Area I X
Tobacco and Livestock
Area X
Ozark Region
A rea X I
Lum ber and Oil
Area X I I
Delta Cotton and Rice
Area X I I I
Cotton and Livestock

Page 39

TREND

OF

DEPOSITS,

1945-1952,

BY AREAS

DEMAND
DEP OS IT S OF INDIVIDUALS,
PARTNERSHIPS AND CORPORATIONS
IN THE EIGHTH FEDERAL RESERVE
DISTRICT
(ALL BANKS)

VER TIC A L
SC AL E
OF ALL LI NE
EQUAL D I S T A N C E S
REPRESENT
CHANGES
IN D E P O S I T S

TABLE

III— D E M A N D

(Dollar amounts in millions)
I
II
III
IV
V
VI
V II.
V III
IX
X
XI
X II
X III

St. Louis............ ................................'......
Louisville...................................................
M em phis.....................................................
Little R ock...............................................
.Evansville..................................................
Springfield...... ..........................................
Total— Metropolitan A reas..............
Corn B elt Farm ing.............................
Coal, Chemicals and O il...................
Tobacco and Livestock.....................
Ozark R tg io n ..........................................
Lum ber and O il....................................
Delta Cotton and Rice.....................
Cotton and Livestock..........................
Total— Rural A reas.............................
Total— D istrict.......................................

* Areas are newly defined as described in

Page 40




CHARTS
EQUAL

IS
L O GA RI TH M IC PER CE N TA GE

D E P O S IT S O F
A ll Banks
Dec. 31,
1945
$ 891.2
271.1
194.0
74.6
64.5
41,8
$1,537.2
$ 482.3
400.9
270.7
301.7
133.4
247.6
273.5
$2,110.1
$3,647.3
the text.

IN D IV ID U A L S ,

D IS T R I C T

P A R T N E R S H IP S

AND

in Eighth Federal Reserve District B y Areas*
D ec. 31,
D ec. 31,
Dec. 31,
D ec. 31,
1949
1946
1947
1948
$1,180.9
$1,034.8
$1,142.0
$1,138.3
311.6
301.8
320.4
323.9
. 234.2
264.8
261.8
258.8
88.0
80.1
84.1
84.8
68.3
80.9
81.0
79.5
45.0
46.2
46.5
43.7
$1,971.2
$1,765.4
$1,935.8
$1,929.0
$ 558.8
$ 552.8
$ 578.2
$ 565.7
430.5
430.9
452.2
445.8
289.0
292.2
309.8
306.8
327.7
287.4
300.2
311.5
144.2
138.1
149.8
143.3
310.9
304.7
330.1
321.7
294.6
298.3
271.3
300.0
$2,292.1
$2,396,7
$2,341.0
$2,416.7
$4,106.4
$4,325.7
$4,263.3
$4,352.5

METROPOLITAN

RURAL

C O R P O R A T IO N S
D ec. 31,
1950
$1,324.6
3519
295.6
95.7
84.1
50.0
$2,201.9
$

585.6
426.2
287.1
297.9
154.1
333.4
271.8
$2,356.1
$4,558.0

D ec. 31,
1951
$1,397.0
382.3
298.2
102.9
87.6
53.4
$2,321.4
$ 627.8
474.4
322.5
329.9
156.6
334.0
294.1
$2,539.3
$4,860.7

D ec. 31,
1952
$ 1,461.2
398.4
308.4
110.9
104.7
53.6
$2,437.2
$

649.5
512.3
323.7
342.4
164.7
345.4
311.3
$2,649.3
$5,086.5

nearly uniform rate of growth for metropolitan and
rural, areas is in contrast with the change over the
full seven-year period from 1945 to 1952* Over the
longer period, as Table III and the small insert
charts in connection with the map show, growth
in deposit volume has been considerably faster at
the metropolitan areas than at the rural ones, meas­

111

W illia m
N orm a

B.

J. A b b o t t , Jr.
L y n c h

ember Bank Earnings and Expenses

1952 w as a y e a r o f a ll-tim e h ig h s f o r
E igh th D istrict m e m b e r bank s in e a r n in g s . . .
E of Eighth District member banks moved
I NCOM
up in 1952 to the highest level in history. The
growth in income resulted from enlarged resources
and higher rates of return.
Resources continued to expand in 1952 and at
the end of the year amounted to $6.3 billion. Com­
pared with the $5.9 billion of total resources at the
close of 1951, this was an increase of almost 6 per
cent. In the use of these funds district member
bankers followed rather closely the pattern of the
previous year. They invested 38.8 per cent of total
assets in United States Government securities and
7.3 per cent in other securities, the same percentages
as in 1951. They made loans equalling 27.7 per cent
of total assets, just a shade less than last year.1
In addition to enlarged resources, higher rates
obtained on both investments and loans were an
important factor in the increase in earnings. The
average interest rate rose on Government securities
from 1.79 per cent in 1951 to 1.92 per cent in 1952,
on other securities from 2.49 per cent to 2.60 per
cent, and on loans from 5.64 to 5.82 per cent.
The larger dollar volume of earning assets,
coupled with higher rates of return, brought district
member bankers the largest earnings of record, $153
million. This total topped by $16 million the pre­
vious high reached in 1951.
1
Ratios used in this article are from the annual study of operating
ratios made by this Bank.
A sset and liability volumes used as bases
or denominators in com puting the ratios are averages of items reported
in the December 3 1 , 1951, June 30, 1952, and September 5, 1952, reports
of condition.
Earnings and expense items were for the calendar year
1952.
R atios are arithmetic averages of individual ratios of 489 member
banks. Ratios computed in this way differ in some instances from ratios
computed from aggregate dollar amounts. Averages of individual ratios are
useful primarily to those interested in studying the financial results of oper­
ations of individual banks. Copies of the operating ratio report m ay be
obtained from the Research Department of the Federal Reserve Bank of
S t. Louis.




uring the return flow of funds to the cities after the
scattering' that took place during W orld W ar II
years. The nearly uniform growth during 1952 sug­
gests that this war-time geographical disturbance
of deposit holdings has been adjusted.

. . • ex p e n s e s , . • .
At the same time, rising operating costs pushed
expenses to a new peak of $90 million in 1952, an
increase of $9 million over the year before. Thus,
over half of the $16 million gain in operating earn­
ings went to pay mounting expenses.
Interest paid on time deposits during 1952 ab­
sorbed a larger percentage of earnings than in 1951,
while salaries and other expenses accounted for a
smaller share. The average interest rate paid to
depositors of time money was increased from the
.98 per cent paid in 1951 to 1.02 per cent.
. . . a n d n e t c u r r e n t ea r n in g s fr o m o p e r a tio n s .
As a result of the expansion of earnings and the
lesser increase in expenses, net current earnings for
1952 also increased, reaching $63 million—-the high­
est of record. Net current earnings represented 1.11
per cent of total assets of district member banks in
1952 compared with 1.06 per cent in the previous
year. Measured against capital accounts these earn­
ings were 15.7 per cent in 1952 and 15.0 per cent the
year before.

T otal in c o m in g fu n d s s u b je c t to d is p o s itio n
b y bank m a n a g e m e n t ( n e t c u r r e n t e a r n in g s p lu s
r e c o v e r i e s a n d r e s e r v e a d ju s tm e n ts ) r e a c h e d
$7 0 .5 m illio n •
Analysis of bank earnings and expenses over a
year period is not complete with consideration of
the factors affecting net current earnings alone.
Certain charge-offs and recoveries, as well as addi­
tions to reserve accounts and withdrawals from
previously established reserves, should be taken into
account in determining the amount of funds that
bank managements had at their disposal. A picture
of the gross sources and uses of district member
bank funds for the years 1949 through 1952 is pre­
sented in the table on the next page.
Page 41

B A N K M A N A G E M E N T O F N E T C U R R E N T E A R N IN G S
P L U S O T H E R IN C O M IN G F U N D S A N D P R E V IO U S L Y
S>ET-ASIDE R E S E R V E S *
(E igh th District M em ber B anks)

1.

2.
3.
4.
5.
6.

7.

8.

9.
10.
11.
12.
13.
14.
15.

(Thousands of D ollars)
1949
Sources of Incom ing Funds
Earnings ..................................... ... $113,500
t«ess Expenses..............;..*..
69,109
N et Current Earnings...........
44,391
Recoveries and Profits
Credited to Incom e..............
5,160
Recoveries Credited to
Reserves ....................................
632
Transfers from Reserves to
Incom e (Release of re­
serves previously set aside
to cover possible losses)....
1,200
Portion of Reserves called
into U se during Year (N e t
reduction in previously setaside r e s e r v e s : line 10
minus line 5 ............................
1,217
Total Incom ing Funds........... $ 52,600
U ses of Funds
Losses and Charge-offs
M ade against Incom e......... $ 6,010
Losses Charged to Reserves
1,849
Additions to Reservts from
Income ......................................
6,755
Additions to Capital
A c c o u n ts ........... ........................
17,256
10,703
Taxes on N et Incom e..............
10,027
Total Uses of Funds..... .

$ 52,600

1950

1951

1952

$124,528
74,339

$137,126
81,052

$152,900
89,919

50,189

56,074

63,081

4,374

3,601

3,255

556

540

974

678

825

806

979

2,271

2,444

$ 56,776

$ 63,311

$ 70,560

$

$

$

5,103
1,535

8,733
2,811

9,446
3,418

5,484

5,202

4,928

19,658
11,275
13,721

16,816
11,850
17,899
$ 63,311

17,809
12,942
22,017

$ 56,776

$ 70,560

* Includes only reserves for bad debt losses on loans, and valuation
reserves on loans and securities.

Item 3 of the table shows net current earnings,
and items 4 through 7 the additional sources of
income.
As indicated in items 4 and 5, profits and recov­
eries of previous losses and charge-offs were $4.2
million. O f this amount, $3.3 million was credited
to income (item 4), and less than $1 million was
credited directly to reserves (item 5). Transfers of
$800,000 were made from reserves to income (item
6) and there was a net reduction in previously setaside reserves of $2.4 million (item 7). W ith these
additions incoming funds totaled $70.5 million in
1952, about 10 per cent more than in the year before.

I n c o m e tax es to o k t h e b i g g e s t s h a r e o f
th e s e in c o m in g fu n d s .
Income taxes paid by district member banks took
the biggest share of incoming funds in 1952. This
was also true in 1951, but was not the case in
prior years. In 1949 income taxes of $10 million
(item 14) were smaller than the amounts of either
dividends or additions to capital. In 1950 income
taxes of $13.7 million exceeded dividends but were
still less than the amount added to capital accounts.
By 1951 income taxes of $17.9 million exceeded by
$1 million the additions made to capital, surpass­
ing by $6 million the amount of cash dividends.
In 1952 the $22 million tax bill was $4.2 million
more than the amount added to capital and $9.1
million above dividends.
When 1952 totals are compared with those of the
prewar year of 1939, the increase in income taxes
stands out even more. Additions to capital in 1952
Page 42




were two and one-half times those of 1939, dividends
were just over two times, but income taxes were
more than ten times their prewar amount.

S to ck h o ld er s r e c e i v e d a le s s e r p r o p o r t io n . . .
There has been a steady though small decline
in the percentage of total funds going to stock­
holders as cash dividends. In 1949 and 1950, cash
dividends were 20 per cent of total incoming funds,
in 1951 they were 19 per cent, and in 1952 they were
18 per cent. W hile dividends were losing ground
percentagewise, they were increasing in dollar
amount. Stockholders received $12.9 million in
cash dividends in 1952, an increase of $1 million
over 1951, and a gain of $2 million over 1949 (item
13). Dividends computed against total capital
accounts reflected an earning rate of 3.0 per cent in
1952, down slightly from the 3.1 per cent in 1951.
• • • a n d a s m a lle r a m o u n t r e m a in e d to
s t r e n g t h e n ca p ita l a c c o u n t s .
As deposits increase, good banking practice re­
quires that capital structures backing these deposits
be increased also. Capital structures were increased
in 1952 by $17.8 million (item 12). This amount just
maintained relative proportions. Capital accounts
were 7.3 per cent of total assets in both 1952 and
1951, and 8.0 per cent of total deposits in both years.

L osses a n d c h a r g e - o ffs w e r e h ig h in d o lla r a m o u n t •
Tw o other uses of funds are shown in the table,
actual losses and charge-offs, and additions to
reserves to cover potential bad debt losses. Actual
losses and charge-offs are made against income or
against previously established reserves. In 1952
district member banks charged the largest dollar
volume of losses in the four-year period directly
against income— $9.4 million (item 9).
Losses
charged against reserves were $3.4 million, also the
highest in the period shown in the table (item 10).
As a protection against potential losses and for
income tax purposes district member banks trans­
ferred $4.9 million to reserves (item l l ) . 1
E. F rancis D eV os
C a t h e r in e P assiglia
1
The building in reserves for potential losses has been m ost marked
since the income tax law was clarified in 1947.
U nder the law banks
are allowed for tax purposes to use an average experience factor for the
determination of the ratio of losses to outstanding loans.
The ratios
of losses (or recoveries) for each of the last twenty years, including the
taxable year, are averaged to obtain the experience factor.
The per­
centage so obtained, applied to loans outstanding at the close of the
taxable year, determines the amount which may be taken as a deduction in
the bank’s income tax return for that year. Continued deductions from tax­
able income will be allowed only in such amounts as will bring the accumu­
lated total of the reserve account at the close of any taxable year to an
amount not exceeding three times the m oving average loss-ratio applied to
outstanding loans.
For all member banks in the Eighth District the twenty-year average
loss-ratio (1931-195 0, the latest dates for which all-bank experience is
available) was 0.51 per cent of outstanding loans.
O n this basis and
excluding certain recovery credits, the m aximum amount of reserves
that district banks could carry would be 1.53 per cent (three times 0.51
per cent) of outstanding loans.
This percentage is larger than the
loss-ratio in 18 of the 20 years. In 1933 the ratio was 3.17 per cent and
in 1934 it was 2.60 per cent.

Survey of Current Conditions
A K IN G income tax settlement problems in its
stride, the Eighth District economy increased
its activity slightly during February and the first
half of March (after allowance for expected sea­
sonal differences). Manufacturing activity and em­
ployment increased in February over the previous
month and both were substantially larger than a
year earlier. Construction activity continued at a
high level, although contracts awarded for the first
two months failed to show as much improvement
over a year ago as nationally. Consumers, generally
in a confident frame of mind as to their own financial
prospects, purchased more goods in February than
in January, taking seasonal experience into account.
Bank loans to individuals and business, after shrink­
ing some in February, increased in the first week of
March. Deposits (except interbank) increased,
with time deposits gaining nearly twice their aver­
age increase in February, and the rate of turnover
of deposits expanded.
The moderateness and direction of price changes
in this period were significant. Price controls were
removed during February and early March, but
only a few prices increased. Retail food prices, in
fact, continued to decline in February, dropping 1
per cent between January 26 and March 2 largely
as a result of the decline in beef prices. Over-all
living costs also declined in the month. At the
same time, the long-term downward trend of whole­
sale and basic commodity prices was halted at least
temporarily. Nearly all categories of wholesale
prices showed strength after early February and the
index as a whole moved upward slightly from midFebruary to the week ended March 17. Farm prod­
ucts prices, which have been among the weakest in
recent months, recovered, while commodities other
than farm and food products remained relatively
stable.
Nationally, as in the Eighth District, the over-all
rate of economic activity inched upward. The Fed­
eral Reserve index of industrial production was
estimated at 239 per cent of the 1935-39 average,
0.8 per cent higher than in January and 7.7 per cent
greater than a year earlier. As in January, both
durable and nondurable output increased, while
mineral production decreased slightly. The auto­
mobile industry paced the nation as output rose
from an annual rate of 5.5 million passenger cars in

T




January to 6.2 million. Production of major house­
hold goods, which had increased more than sea­
sonally in January, continued at high rates. Steel
ingot production held close to the record rate
achieved in January. And shoe plants and paper
board mills both operated at substantially higher
rates than in February, 1952.
However, mineral production continued to decline
in February, primarily as a result of a further cur­
tailment of coal output to a level about one-sixth
below that of February last year. Lead and zinc
output was curtailed in the month as prices dropped,
reflecting lagging demand and the availability of
lower-priced foreign supplies. Crude oil production
held steady at a rate slightly above a year earlier.
Reflecting the rising level of economic activity,
nonfarm employment in the nation increased slight­
ly between January and February although little
change is usually expected. Unemployment was
little changed from the seasonally advanced January
level, but was substantially less than a year earlier.
Construction activity was also a strengthening
factor during the period. The physical volume of
work put in place decreased less than seasonally
from January and contracts awarded during the
month continued substantially larger than a year
ago. The substantial increase in industrial and
commercial building contracts awarded so far this
year over the comparable period of 1952, together
with the expansion in machine tool orders since

W H O L E S A L E P R IC E S IN T H E U N ITE D S T A T E S
Bureau of Labor
Statistics
(1947.49 = 100)
A ll Commodities........
Farm Products......
Foods.........................
Other.........................

F e b .,’ 53

Jan.,’ 5 3

F e b .,*52

109.6
97.9
105.1
113.1

109.9
99.6
105.5
113.1

112.6
107.8
109.7
114.3

February, 1953
compared with
Jan.,’ 53
F e b .,*52
-0 -%
— 2
- 0- 0 -

— 3%
— 9
— 4
— 1

C O N S U M E R P R IC E IN D E X *
B ureau of Labor
Statistics
(1 9 4 7 -4 9 = 1 0 0 )
F e b .,*53
United States............... 113.4

Jan.,*53
113.9

F e b .,*52
112.4

February, 1953
compared with
Jan.,*53
F e b .,*52
— 1%
+ 1 %

R E T A IL F O O D *
Bureau of Labor
Statistics
(1 9 4 7 -4 9 = 1 0 0 )
F e b .,’ 53
U .S . (51 cities).......... 111.5
St. Louis................. . 112.8
* N ew series.

Jan .,*53
113.1
113.5

F e b .,*52
112.6
114.0

February, 1953
compared with
F e b .,*52
2%
— 1%
1
— 1

Jan.,*5-3
—
—

Page 43

relaxation of priorities in November, suggests that
private investment is an important element in the
high level of business activity. Much of the busi­
ness investment in plant and equipment is for civil­
ian uses rather than a result of defense mobilization.
Consumers, too, were purchasing goods at a rapid
rate and a recent survey conducted by the Federal
Reserve System indicated they expected to pur­
chase a large volume of durable goods and homes
this year. More consumers reported plans to buy
new cars this year than had so indicated in early
1952 or 1951. Plans to purchase major household
goods, especially television sets and furniture, are
more numerous than a year earlier. Intentions to
buy refrigerators appear little changed from last
year. Plans to purchase new and used houses in
1953 appear to be slightly more numerous than a
year ago.
W ith substantial Government purchases of de­
fense and civilian goods and services, with an indi­
cated high level of business investment in plant and
equipment, and with consumers’ confident attitudes
toward their financial positions and expectations to
purchase durable goods and houses in large volume,
the underpinnings of economic activity in the near
future seem firmly based.

Nonfarm employment in the nation, which usually
changes little at this time of year, increased sub­
stantially in February to reach a record high for
the month of 55.6 million, about 1.9 million higher
than a year earlier. Agricultural employment de­
clined somewhat and was well under the level of a
year ago. Unemployment after a seasonal rise in
January, reflecting curtailment of construction and
other outdoor activities, declined slightly to 1.9 mil­
lion. The unemployed represented about 2.9 per
cent of all civilian workers this February, compared
with 3.4 per cent a year earlier.

Seasonal layoffs in large Louisville industries,
primarily food processing, distilled liquors and
tobacco manufacturing, as well as in retail trade and
transportation, caused total employment in that area
to drop from January to February. Expansions at
ordnance, explosives, and electrical equipment
plants only partially offset these seasonal influ­
ences. Nonfarm employment in the Louisville area
was still substantially above year earlier levels with
gains centered in defense industries, machinery
and equipment manufacturing, and construction.
Defense d e m a n d s , combined with seasonal
strength shown in the consumer durable markets
for automobiles and refrigerators, were reflected in
the high level of employment and manufacturing
activity in Evansville. Refrigerator plants, as in
the past several months, increased employment
during February as a result of both their civilian
and defense manufacturing activities. Automobile
assembly employment moved upward slightly;
other industries showed little change from January.
The number at work in fabricated metal production
increased following settlement of a labor dispute.

C O N S U M P T IO N O F E L E C T R IC IT Y -D A IL Y A V E R A G E *
F eb.,
Jan.,
( K . W .H .
1953
1953
in thous.)
K .W . H .
K .W . H .
998
977
Evansville.............
Little R ock ...........
211
218
Louisville...............
4,241
4,117
M em phis................
1,620
1,569
Pine B lu ff..............
464
452
St. Louis................
5,370
5,219
12,904
12,552
T otals.................
* Selected M anufacturing Firm s.

Page 44




February, 1953
compared with
Jan .,’ 53
F e b .,*52
+ 2%
+31%
— 3
+13
+ 3
+13
+ 3
+ 6
+ 3
— 9
+ 3
+13
+ 3%
+13%

L O A D S IN T E R C H A N G E D F O R 2 5 R A IL R O A D S
A T ST . L O U IS
First Nine D ays
F e b .,*53
Jan .,’ 53
F e b .,’ 52
M a r .,’ 53
M a r .,’ 52 2 mos. ’ 53 2 mos. ’ 52
107,130
109,490
112,784
34,863
32,049
216,620
223,368
Source: Terminal Railroad Association of St. Louis.

C R U D E O IL P R O D U C T IO N —D A IL Y A V E R A G E
( I n thousands
of bbls.)

F eb.,
1953

T o ta l...........................

In the St. Louis area, nonfarm employment in­
creased substantially in February and early March,
largely as a result of the addition of a second shift
at the two automobile assembly plants. Some other
industries, primarily those manufacturing machin­
ery, electrical equipment and transportation equip­
ment, also added workers in the period. Offsetting
these increases to a minor extent was the layoff of
about 400 workers at one defense plant and other
scattered layoffs in retail trade and construction.

Feb.,
1952
K .W . H .
759
187
3,753
1,526
507
4,735
11,467

Jan.,
1953
76.2
164.0
33.6
30.1
303.9

307.3

F eb.,
1952
76.2
163.7
30.0
34.5
304.3

F eb., 1953
compared with
F e b .,*52
Jan .,’ 53
+ 2%
+ 2%
+ 1
+ 1
+ 13
+ 1
— 1
— 14
+

1%

+

1%

C O A L P R O D U C T IO N IN D E X
1935-39 = 100
Feb., ’ 53

Unadjusted
Jan., ’ 53

Feb., >52

Feb., ’ 53

Adjusted
Jan., ’ 53

F eb., ’ 52

139.3 P

158.5 P

164.9

122.2 P

136.6 P

144.6

S H O E P R O D U C T IO N IN D E X
1 9 3 5 -3 9 = 1 0 0
_____________ Unadjusted_____________
_______________Adjusted______________
Jan., ’ 53
D ec., ’ 52 Jan., ’ 52
Jan., ’ 53
D ec., ’ 52 Jan., ’ 52^
169.9 P
151.1
P— Preliminary

143.9

166.6 P

154.2

'

141.1

Industry
Industrial activity in the Eighth District in Febru­
ary and early March continued at a high level, with
a number of factories expanding their output. The
steel ingot production rate at St. Louis, however,
fell off slightly and livestock slaughter declined
seasonally.

Manufacturing— In February, most manufactur­
ers in the district were operating their plants at a
rate as high as or better than that of January (after
allowing for the shorter number of working days)
according to the reported use of electricity at se­
lected firms in six district cities. Textile, lumber
and wood-products manufacturers showed absolute
gains in use of power over the month of 12 and 15
per cent, respectively, more than the usual spring
pickup. Fabricated metals and transportation equip­
ment producers also used substantially more power.
One large shoe manufacturer (with factories in four
district states) reported that from December 1 to
February 15 output increased 22 per cent over the
comparable period a year ago.
Steel ingot production fell off slightly, however.
In the St. Louis area, the rate was 94 per cent of
capacity in February, down 3 points from January.
And the drop continued in the first three weeks of
March which averaged 90 per cent. However, dis­
trict output will be increased in the near future
with the opening of a new steel mill at Owensboro,
Kentucky. This mill will add 198,000 tons poten­
tial capacity to the district, an increase of about
12 per cent.
The number of livestock slaughtered in the St.
Louis area was down 17 per cent from January (on
a weekly average basis), the drop being in large
part seasonal. Compared with February, 1952, the
number slaughtered was off 6 per cent, largely
reflecting a decline in pig marketings over the na­
tion. A larger number of cattle and calves were
processed.
Whiskey production held even over the month
with 28 Kentucky distilleries in operation, the same
as a month earlier, but six less than a year ago.
The continued low rate of production is beginning
to be more than offset by withdrawals, making
some dent in the large accumulated stocks.
Lumber production increased during February
with activity in hardwoods continuing to be greater
than that in softwoods.
Further cutbacks in the output of the district
zinc and lead industry resulted from the shutdown
of a zinc smelter at Fort Smith, Arkansas, during
the month.




Coal and Petroleum Output— W ith the continua­
tion of mild weather, district coal production in
February dropped even more, 16 per cent below
both January and year-ago figures, according to
preliminary estimates. However, crude oil produc­
tion in district states recovered from the slight
decline experienced in January.

Constrnetion
As in recent months, construction activity in
the nation continued strong during February. Out­
lays for new construction were at a record level
for the month and construction contracts awarded
continued larger than year earlier levels. Costs
remained stable although higher than a year earlier.
Outlays for new construction put in place de­
clined less than seasonally to a total of $2.2 billion
during the month. In the first two months of the
year, such expenditures were 6 per cent larger than
in the comparable period of 1952, with most major
types of construction showing dollar increases.
However, the physical volume of work put in place
was only slightly larger than a year earlier.
Contracts awarded for new construction during
the short month of February declined somewhat
from the January total but were about 16 per cent
larger than a year earlier. The latter increase was
primarily due to larger amounts of commercial, in­
dustrial, and private residential building projects.
Public contracts for highways and bridges were
also substantially larger than a year earlier.
The number of new housing starts increased 8
per cent from January to 77,000 units in February,
a seasonally adjusted rate of 1.2 million, units con­
tinuing the high level of the two preceding months.
In the Eighth Federal Reserve District construc­
tion contracts awarded during February increased
slightly from January to a total of $57 million, as
reported by the F. W . Dodge Corporation. This
increase contrasted to a 5 per cent drop nationally.
However, total contracts, both in the district and in
the United States, were substantially larger in

B U IL D IN G P E R M ITS
M onth of February, 1953
N ew Construction
________ Repairs, etc.
(Cost in
Num ber
Cost
N um ber
Cost
thousands)
1953 1952 1953
1952
1953 1952 1953
1952
Evansville.............
29
36 $
384 $
72
75
48 $
68 $
31
Little R ock...... .
53
62
606
557
166
164
109
107
Louisville............... 101
197
1,776
892
108
78
145
111
Mem phis..........1,356 1,404
2,178
2,770
198
171
190
133
St. Louis..........
265
215 _ 2 ,6 0 7
1,448
212
208
644
601
Feb. Totals...... 1,804 1,914 $ 7,551 $ 5,739
759
669 $ 1,156 $
983
Jan. T otals....... 1,727 1,975 $ 6,485 $ 5,287
544
569 $
963 $
842

Page 45

DEPARTMENT STORES
Stocks
____________ N et Sales____________ on H and

Stock
Turnover

F eb., 1953
2 mos. ’ 53 Feb. 28,’ 53
Jan. 1 to
compared with
to same comp, with
Feb. 28,
Jan.,’ 53 F e b .,’ 52 period ’ 52 Feb. 2 9 ,’ 52 1953 1952
8th F . R . District
T o ta l...............................
Ft. Smith, A r k .i............
Little Rock Area,
A r k .2...............................
Quincy, 111........................
Evansville Area, In d .2.
Louisville Area, K y .,
In d .2................................
St. Louis Area, M o .,
111.2..................................
Springfield Area, M o .2.
Memphis Area, T enn.2
A ll Other Cities3............

— 2%
- 0 -

+ 4%
- 0 -

+
—

+ 5
+ 3
+ 5

+ 3
+ 1
+17

+ 6
_
7
+ 4
+ 4
+ 3

2%
1

+ 3%
- 0 -

.55
.51

.56
.51

+ 2
— 3
+18

+ 6
+15
.........

.51

+ 6

+ 3

+ 5

.52

.56

+ 3
— 1
+ 5
+10

+ 2
— 4
- 0 +14

+ 1
+ 4
+ 2
+11

.57
.43
.62
.39

.57
.45
.59
.43

.53
.54
........................

.48

1 In order to permit publication of figures for this city (or area), a spe­
cial sample has been constructed which is not confined exclusively to depart­
ment stores. Figures for any such nondepartment stores, however, are not
used in computing the district percentage changes or in computing depart­
ment store indexes.
2 The sample for these areas is unchanged from the sample previously
reported for the principal cities in these areas. The area designations follow
the definition of Standard Metropolitan Areas established by the Bureau
of the Budget on October 17, 1950.
The areas consist of the following
counties: Little Rock Area— Pulaski County, Arkansas; Evansville Area
— Vanderburgh County, Indiana; Louisville Area— Jefferson County, K en ­
tucky, Clark and Floyd counties, In d ian a; St. Louis Area— St. Louis City,
St. Charles and St. Louis counties, Missouri, Madison and St. Clair coun­
ties, Illinois; Springfield Area— Greene County, M issouri; Memphis Area
— Shelby County, Tennessee.
3 Fayetteville, Pine Bluff, Arkansas; Harrisburg, M t. Vernon, Illinois;
Vincennes, Ind ian a; Danville, Hopkinsville, Mayfield, K entucky; Chillicothe, M issouri; Greenville, M ississippi; and Jackson, Tennessee.
O U T S T A N D I N G O R D E R S of reporting stores at the end of February,
1953, were 15 per cent larger than on the corresponding date a year ago.

PERCENTAGE OF ACCOUNTS AND

N O T E S R E C E IV A B L E

Outstanding Feb. 1 , 1953, collected during February:
Instalm ent Excl. Instal.
Instalment Excl. Instal.
Accounts
Accounts
Accounts
Accounts
5 5%
42%
Quincy ........... .... 19%
Fort Smith...
%
43
St. Louis ...... .... 20
51
Little Rock... ..... 14
44
44
Other Cities.. ... 11
Louisville ... ..... 18
46
8 th F .R . Dist. .... 19
34
Memphis ..... ..... 19

......

IN D E X E S O F D E P A R T M E N T ST O R E SA LE S A N D STOCK S
8 th Federal Reserve District

Dec.,
1952
179
113

Feb.,
1952
80

1 12

109

128
.....
125
Stocks, seasonally adjusted 5 ............................ .
4 Daily average 1947-49 = 1 0 0 .
5 End of month average 1947-49= 100.
Trading d a ys: Feb., 1953— 2 4 ; Jan., 1953 -- 2 6 ; Feb., 1952 --2 5 .

1 12

Feb.,
1953
Sales (daily average), unadjusted 4 ..................... ......
Sales (daily average), seasonally adjusted4.... ......
Stocks, unadjusted^ ....... ..........................................

85
106
122

Jan.,
1953
79
108
113
130

100

R E T A IL F U R N IT U R E S T O R E S
Inventories
Ratio
N et Sales
of
Feb.,, 1953
F eb., 1953
Collections
compared with
compared with
Jan.,*53 F e b .,’ 52 Jan.,’ 53 F eb.,’ 52 F e b ./53 Feb.,'52
22%
24%
+ 12%
+ 6%
+ 15%
+ 3%
56
+ 17
60
+ 14
+ 5
+ 11
__ 7
11
13
+ 22
+ 8
+ 5
12
+ 26
— 7
11
+ 5
+ 8
*
*
13
12
+ 11
+ 11
+ 11
19
+ 2
15
+ 8
+ 11
Little R ock..
14
16
+ 8
+ 17
+ 2
+ 11
*
*
*
*
+ 18
+ 18
* N o t shown separately due to insufficient coverage, but included in
Eighth District totals.
1 In addition to following cities, includes stores in Blytheville, Pine
B luff, A rkan sa s; Hopkinsville, Owensboro, K entucky; Greenwood, M is­
sissippi ; and Evansville, Indiana.
2 Includes Louisville, K en tu ck y; and N ew Albany, Indiana.

P E R C E N T A G E D IS T R IB U T IO N

O F F U R N IT U R E SA L E S
Feb., *53 Jan., *53

Cash Sales............................................................................
16%
Credit Sales........................................................................ . 84
Total Sales....................................................................... 1 0 0 %

Page 46




18%
82
100%

Feb., *52
14%
86

100%

February than a year earlier. All of the increase
in district awards from January to February was
due to a greater value of residential contracts
awarded. Data for the first two months of the
year suggest that the district construction industry
is not moving ahead as fast as nationally. Total
contracts awarded in the district during the first
two months of 1953 showed little change from the
same period in 1952, whereas nationally contracts
awarded have totaled approximately 17 per cent
more. Most of this disparity is in the lower value
of nonresidential construction activity started so
far this year in the district.

Trade
During February, sales at reporting district retail
stores moved seasonally from January and com­
pared favorably with those in February, 1952. Both
durable and nondurable lines recorded increases.
Homefurnishing sales, a usual February feature,
were termed satisfactory. And a somewhat earlier
date of Easter in 1953 than in 1952 signaled the
start of spring merchandise promotions toward the
end of the month.
At district department stores February sales
totaled slightly under those in January but were
4 per cent above those a year ago. But with fewer
trading days in February, 1953, than in either the
previous month or the comparable month in 1952,
seasonally adjusted daily sales averaged 106 per
cent of the 1947-49 period in comparison to 108 per
cent in January and 100 per cent in February, 1952.
Cumulative sales in the first two months of 1953
were 2 per cent larger than in 1952.
At women’s specialty stores in the district the
sales level during February was not much changed
from that in January and was somewhat higher
than that in February, 1952. Men’s wear store sales
volume in the month dropped substantially below
that in January and was slightly less than a year
ago.
Furniture sales volume at reporting district out­
lets totaled somewhat larger than in both January,
and February, 1952.
W H O L E SA L E TRADE
Line of Commodities________ _________ N et Sales_______
D ata furnished by
F eb., ’ 53
Bureau of Census
compared with
U .S . D ept, of Commerce*
Jan., *53
F eb., *52
Autom otive Supplies.......................— 1 8 %
— 2%
D rugs and Chemicals.................. ....— 15
— 2
D ry Goods............................................ — 3
+ 6
Groceries........................................... ....— 6
+ 2
H ardware............ ............................ .... + 1 3
— 11
Tobacco and its Products.............. + 2
+ 4
Miscellaneous......................................— 4
+ 3
* * Total A ll Lines.................... ....+ 1 %
— 2%
* Preliminary.
* * Includes certain items not listed above.

Stocks
February 28, 1953
compared with
February 28, 1952

— %
+ 19

+ 1
—13
+ 7
— 13
3%

Banking and Finance
During February and early March the money
market remained tight as it has during most of
the past twelve months. Reflecting the pressure,
banks sold securities and continued to borrow
heavily. Business and consumer loans declined
during February but showed some expansion in
early March. Real estate loans continued to decline.
Banking— Loans at district member banks rose
$7 million during February, primarily because of a
growth in loans by the larger city banks to other
banks. Normally loans decline at this time. Both
the larger and smaller banks reported a moderate
expansion offset in part by a net contraction at the
medium-sized banks. The increase at the smaller
banks reflected loans to farmers. Commercial, real
estate, and consumer loans declined during the
month. However, in early March business loans
rose contraseasonally and consumer borrowing in­
creased at the weekly reporting banks.
Investment holdings were reduced $63 million
during February at district member banks. Twothirds of the reduction was in Government securi­
ties (largely Treasury bills) at the larger urban
banks.
Individuals and businesses increased their de­
posits, both demand and time, during the month.
The gain in time deposits was about double the
average February growth in the postwar years.
Nevertheless, total deposits declined moderately
due to a reduction in correspondent bank accounts.

The amount of checks cashed was at a high level
in February. Debits to deposit accounts (except
interbank) at 22 centers in the Eighth District were
$3.9 billion. On a seasonally adjusted basis this
was up somewhat from the levels of recent months
and only slightly below the peak reached last
October.
Gold Movements— Since December 10 there has
been a net drain on the nation's gold. From that
date through March 16, the United States Treasury
gold stock has declined by $725 million. This out­
flow of gold, although it represents only 3 per cent
of the monetary gold stock of the United States,
has been one of the important factors maintaining
pressure on bank reserves.
D EBITS TO D E P O S IT A C C O U N T S
F eb.,
1953

Jan.,
F eb.,
1953
1952
E l Dorado, A rk ........... ... $
22,955 $
30,683 $
27,447
Fort Smith, A rk ..........
51,230
43,828
Helena, A r k ..................
8,880
10,454
7,594
Little Rock, A rk .........
136,263
161,400
36,530
40,183
Pine Bluff, A rk ...........
32,749
16,162
19,148
Texarkana, A r k .* .......
15,540
30,102
33,339
A lton , 111........................
28,874
113,018
136,192
E .S t .L .-N a t .S .Y .,I ll.,
119,147
32,297
36,951
33,134
156,730
171,578
129,667
Evansville, In d ...........
675,213
Louisville, K y .......^......
725,928
645,512
42,766
49,867
37,124
Owensboro, K y ...........
42,047
Paducah, K y ...............
45,118
34,868
Greenville, M iss..... ....
24,104
30,281
21,964
Cape Girardeau, M o..
12,246
16,096
12,272
Hannibal, M o ...............
10,173
9,035
Jefferson City, M o .....
112,810
51,428
St. Louis, M o ............. ... 1,765,348 2,026 ,1 8 4
1,714,146
11,475
11,709
11,113
Springfield, M o ...........
59,925
69,288
62,256
Jackson, Tenn..............
19,937
22,357
19,772
Memphis, Tenn...........
629,943
730,157
607,935
... $3,939,772 $4,541,126 $3,801,688
* These figures are for Texarkana, Arkansas, only.
banks in Texarkana, Texas-Arkansas, including banks
D istrict, amounted to $34,640.
(In thousands
of dollars)

Feb., 1953
compared with
Jan .,53 F e b .,*52
___ 2 5 % ___ 16 %
___ 15
___
1
— 15
+ 17
— 14
+
2
—
9
+ 12
— 16
4
+
— 10
4
+
___ 17
___
5
— 13
___
3
—
9
+ 21
7
5
+
14
+ 15
—
7
+ 21
— 20
+ 10
_ _ 24
0 ___ 16
__
6
___ ; 56
__
3
---- 13
+
3
—
2
3
+
---- 14
4
■
.--- 11
1
+
'---- 14
+. 4
---- 1 3 % +
4%
Total debits for
in the Eleventh

E IG H TH D IST R IC T M E M B ER B A N K A S S E T S A N D LIABILITIES B Y S E L E C T E D G R O U P S
A ll M ember_____________
( I n M illions of D ollars)
Assets
Feb., 1953
1.

3.

Loans and Investments..................................
a. L oan s..................................................................
b. U .S . Government O bligations...............
c. Other Securities.;..........................................
Reserves and Other Cash Balances........
a. Reserves with the F . R . bank...*........
b. Other Cash Balances 3 ................................
Other A sse ts.......... ...............................................

4.

T otal A sse ts..........................................................

2.

1,493
727

Change fro m :
Jan., 1953 F eb., 1952
to
to
Feb., 1953 F eb., 1953
$—
+
—
—
+
—
+
+
$—

56
7
56
7
42
22

64
2
12

_______ Large City Banks 1 _________

$ + 365
+ 190
+ 168
+
7
+ 78
+ 15
+ 63
+
4
$+447

Feb., 1953
$2,664
1,398
1,085
181
926
466
460
34
$3,624

$+281
+ 38
+243
+ 62
+ 74
+ 30
$ + 447

$2,763
714
2,049
509
126
226
$3,624

Change fro m :
Jan., 1953 Feb., 1952
to
to
Feb., 1953 Feb., 1953
$+237
$— 44
+ 130
+
5
— 42
+ 105
—
7
+
2 '
+ 44
+ 42
+
4
— 17
+ 61
+ 38
+
2
+
1
$+
2
$ + 280 '

_________Smaller Banks 2

Feb., 1953
$1,893
682
1,006
205
567
261
306
22

$2,482

Change fro m :
Jan., 1953 F eb., 1952
to
to
Feb., 1953 Feb., 1953
$— 1 2
$ + 128
+
2
+ 60
— 14
+ 63
- 0 +
5
—
2
+ 36
—
5
+ 11
+
3
+ 25
- 0 +
3
$— 14
$ + 167

Inabilities and Capital
$—
5
— 27
+ 22
+
9
— 17
+
1
CM

.

$4,505
756
3,749
1,066
139
396
$6,106

I

Gross Dem and D eposits..................................
a. Deposits of B anks........................................
b. Other Dem and D eposits..........................
Tim e D eposits................ ......................................
Borrowings and Other Liabilities.............
Total Capital A ccounts................. ..................
T otal Inabilities and Capital Accounts..

$ + 16
— 23
+ 39
+
5
— 19
- 0 -

$+

2

$ + 177
+ 37
+ 140
+ 21
+ 71
+ 11
v $ + 280

$1,742
42
1,700
557
13
170
$2,482

$—
—
—
+
+
+
$—

21

4
17
4
2
1

14 '

$ + 104
+
1
+ 103
+ 41
+
3
+ 19
$ + 167

1 Includes 13 St. Louis, 6 Louisville, 3 M em phis, 3 Evansville, 4 Little Rock, and 4 East St. Louis-N ational Stock Yards, Illinois, banks.
Some of these batiks are located in smaller urban centers, but the majority are rural area banks.
3 Includes vault cash, balances with other banks in the United States, and cash items reported in process of collection.
2 Includes all other Eighth D istrict member banks.




Page 47

restrictions found it easier to buy our goods. As a
result, the United States gold flow again reversed
about mid-1951. From mid-1951 through mid-1952
the inflow of gold amounted to over $1.5 billion.
In consequence, the monetary reserves of many
countries declined again. Many countries such
as the British Commonwealth countries, the
Scandinavian countries and Belgium, stiffened
import restrictions. In addition, several countries,
such as France, Germany, Holland, and Denmark,
were able to expand their exports by the so-called
export bonus system. Also there were large mili­
tary and economic aid grants and some increased
offshore military procurement by this country.
Thus, the gold inflow halted and since December
10 gold has again begun to flow out.
At the present time, the country’s gold stock
stands at roughly $22.5 billion. This amount is
presently adequate for monetary purposes and com­
prises about two-thirds of the world’s monetary
gold supply outside the U.S.S.R.

Movement of gold between countries is one of
the ultimate means by which international balances
are settled. On the one side of the ledger are pay*
ments received for goods, services, and securities
the United States sells to other countries, and on
the other side are payments due for goods, services,
and securities the United States buys from others.
In addition, there are other payments that must be
taken into account, such as government aid, private
remittances and tourist expenditures abroad. If,
after all items have been taken into account, there
is a balance due to one country from the other, it
can be met by one of several methods: by borrowing
in the foreign market, by deposit changes in foreign
banks, or by the movement of gold.
For four years after the end of W orld War II,
foreigners purchased a sizable amount of goods
from us on balance. These net purchases were
paid for, in part, by shipping us gold. However,
in late 1949, the gold flow reversed, caused in great
part by the devaluation of many foreign currencies
to more realistic levels and by large strides toward
economic recovery over the whole period on the
part of European nations. Thus, foreign govern­
ments were able to buy back a little of the gold
they had previously sold us. After Korea, the gold
outflow increased as the United States made heavier
purchases of raw materials driving the prices of
these commodities up sharply.
Early in 1951, United States exports rose, as for­
eigners with larger dollar earnings and less import
Page 48




Crop prospects in the Eighth District remained
favorable throughout February and early March,
with winter wheat continuing its satisfactory con­
dition and mild weather permitting some field work,
particularly in the mid-South. The open weather
was also quite favorable for winter forage, thus
benefiting the many farmers who were short of
hay due to the 1952 drouth.
Farm Income— Despite lower agricultural prices,
farm income for the nation during January and
February was estimated at $4.7 billion, about the
same as for the first two months of 1952. Increased
receipts from crops about offset the lower income
from livestock.
C A S H F A R M IN C O M E
January, 1953
(I n thousands
of dollars)
Jan., 1953
$ 28,417
Arkansas........................................
Illinois............................ ................
179,939
Indiana...........................................
86,226
K entucky.................. ....................
126,969
Mississippi.....................................
32,476
Missouri.........................................
79,079
Tennessee......................................
54,520
7-States Totals.......................
$587,626
8 th D ist. Totals.....................
265,801

D e c ., 1952
— 52%
— 3
— 9
— 14
— 46
— 22
— 12
— 17%
— 24

Jan., 1952
— 33%
+ 12
- 0 +21
+ 8
— 5
+ 13
+
+

6%

2

R E C E IP T S A N D S H IP M E N T S A T N A T IO N A L
STOCK YAR D S
Receipts
February, 1953
compared with
F eb.,
1953
Jan.,’ 53 F e b .,'52
+35%
Cattle and calves..... 91,865 — 1 6 %
— 21
.. 224,445 — 20
— 25
.. 28,151 — 29
— 11%
. 344,461 — 2 0 %

Feb.,
1953
30,073
45,495
6,557
82,125

Shipments
February, 1953
compared with
Jan.,*53 F e b .,'52
— 29%
+ 1%
— 13
— 46
— 33
— 60
— 22%
— 37%