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F E D E R A L - R E S E R V E B A N K O F S T . L O U ! S M O N T H L Y R E P O R T ON G E N E R A L B U S IN E S S A N D A G R IC U L T U R A L C O N D IT IO N S IN F E D E R A L R E S E R V E D IS T R IC T No. 8 R E L E A S ED FOR P U B L t C A T ! O N ON A N D AFTER THE A F T E R N O O N OF A P R ! L 2 5 , 1919 W t L U A M MCC. MA RT t N CH At R MA N O F T W E BOA RD AN D FEDERAL RE S E RV E AGENT A G RICULTU RE— The outlook in this district is greatly strengthened by the favorable crop conditions. The wheat has com e through the winter in splendid condition, and the prospects for a bumper crop were probably never better. The condition of the winter wheat in the seven states, all or parts of which are in cluded in this District, was estimated by the Government on April 1st to be as follow s: Missouri, 103% ; Kentucky, 103% ; Illinois, 101%?; Indiana, 100% ; Arkansas, 9 9 % ; Tennessee, 98% , and Missisippi, 90% . The average condition of the wheat in these seven States on April 1st was 99% , which is 7% better than last year and 17% better than the ten-year average. It is estimated that this wheat will average $2.28 per bushel, as compared to $1.79 last year. The acreage of winter wheat is considerably in excess of last year's acreage. Spring wheat seeding is about finished, and the acreage is also larger than that planted last year. Rye is in excellent condition, and oats are com ing up well. Alfalfa, m eadows and pastures are making good growth, though rain is needed in some localities. The soil generally has been in good workable condition, and plow ing for corn, cotton, etc., is well under way. Gardening has begun, and most of the early vegetables have already been planted. Save in a few localities where peach buds were winter-killed, the outlook for principal fruits is quite promising thus far. The strawberry outlook is also said to be very good. There is a movement on in the cotton-grow ing States of this District to get the farmers to further diversify their crops by raising more hogs and other foodstuffs. COM M ERCIAL— Business activity continues to improve with the further stabilizing of prices, and in some lines it is practically normal. A large dry goods com pany reports that all of its factories are running full time, and that the demand for its products is about 80% of normal. It states that declines of from 25% to 30% have taken place in cotton piece goods, underwear, shirts, hosiery and dress goods, with practically no change in linens, silks and ribbons. A wholesale general merchandise house reports that the demand for its merchandise is about 20% above normal. A large woolen mill states that it has sufficient orders on hand to carry it for six months. Clothing manufacturers report a larger volume of business than at this time last year. The boot and shoe industry continues active, with prices firm. W holesale milliners report substantial increases in their sales as compared to last year. A large drug concern states that its business is from 15% to 20% better than at this time last year, and that there is an increasing demand for many sundries and special ties which may be classified as luxuries. W holesale grocery houses also report a larger volum e of business than at this time last year, some reporting increases in sales o f from 20% to 25% . Hardware dealers state that their business is im proving and that their sales com pare favorably with last year. Some branches of the iron and steel industry are still below normal, though increased activity is anticipated. It is said that the lack o f demand from the railroads is affecting this industry considerably. Manufacturers of brick and clay prod ucts report that their business is still below normal, but that they are looking for a good business later in the year with the revival o f building and construction work. The electrical line is also looking for increased activity. Business men, as a rule, are very optimistic regarding the future. Many concerns are beginning t . buy in anticipation o f the demand next fail, but in som e tines they are stil) buying for their immediate needs, awaiting a further readjustment o f prices. 1 he saies manager of a large wholesale house in this District has introduced the slogan, "B u y as Y ou W ould Like to Se . Department stores and retail merchants generally report a good Easter trade. T h e weather has been ideal for shopping, and there has been a good demand for millinery, hats, clothing, shoes and other spring merchandise. Merchants state that there is a tendency to dress m ore elaborately, and that consumers are buying freely. Collections, as a rule, are reported to be good. A ccording to the report of R. G. Dun & Co., there were on ly 31 com m ercial failures in this D istrict dur ing March, 1919, as compared to 49 during March, 1918. An indication o f prosperity is shown in the fact that up to April 3rd the M issouri M otor V eh icle Depart ment issued 160,557 owners' license plates, 2,654 dealers' plates, 1,424 m otorcycle plates, and 11,637 chauReur badges. This registration shows an increase of 18,542 over the corresponding period last year. CO TTO N __Reports indicate that the demand fo r cotton is n ow better than it has been for several months, but that exporting has been restricted by the scarcity of shipping facilities. Steps are bein g taken in this district for the formation of a cotton export corporation under the W eb b -P om eren e A ct, w hich cor-r pnration, when organized, will undertake to im prove the cotton situation. It will keep representatives in the various European countries for the purpose of undertaking to fill the cotton needs o f such countries and to finance same through the corporation mentioned. BA N K IN G — During the past month the demand for m oney in this D istrict has continued good , and ; rates have remained firm. The high, low and custom ary discount and interest rates prevailing in St. Louis, Louisville and Memphis from March 16th to A pril 15th, as reported by banks located in those cities, were as fo llo w s : St. Louis H L C Louisville H L Memphis C H C L Customers' prime commercial paper: 6 6 6 6 5 5% 6 6 6 5^ 5% 6 6 5% 5% 5% 5H 5% 5% 5X 5% 5% 5 5% 5 5 5 6 5 6 4% 41^ 5H 4% 4% 4m 4^6 4% 4M 4.% 45 4% 6 6 6 5 5 5 6 6 6 6 6 5 5 6 6 6 6 6 6 6 6 5% 6 6 S 6 Prime commercial paper purchased in open market: 30 to 90 days........................................................................... .5 ^ .sm Loans to other hanks..................................................................... ... Bankers' acceptances of 60 to 90 days: U nendorsed........................................................... 6 5 Loans secured hy prime stork exchange collateral or other current collateral: D em an d ............................................... 3 m o n th s........................................... 3 to 6 months............................................. Cattle lo a n s ................................................................ Commodity paper secured by warehouse receipts, etc . Loans secured hy Liberty Bonds and Certificates......... 5 5H 5^ 6 . 6 6 5H 4^ 5% sn 6 6 6 5% 5 *5 5 6 5 4% Practically none of the large city banks are in the market for com m ercial paper, though brokers a fair demand from some o f the country districts. 6 6 6 6 6 5 report ) The condition of the banks in this D istrict at the present time and the changes in the banking situation during the past month are reflected in the follow in g com parative statement show ing the principal resources and liabilities of m em ber banks in St. Louis, L ouisville, M em phis, Little R ock and E vansville: A p r il!!, 1919 Number of banks reporting.............................................................................................. 37 March 7, 1919 37 United States bonds to secure circulation.................................................. ................ Other United States bonds, including Liberty bonds.......................... ............... United States certificates of indebtedness.................................................. ............... $ 16.908,000 18.609.000 73.463,000 $ 16,908,000 23,176.000 65.581.000 Total United States securities ow ned.................................................. ............... 108,980.000 105.665,000 Loans secured by United States bonds and certificates........................... ............... AH other loans and investments..................................................................... ............... 26,509,000 388,035.000 22,556,000 380.686,000 Total loans and investments................................................................. ............... 523,524.000 508,907,000 39,710.000 10,265,000 298.380,000 99.954000 41,526,000 10.949,000 307,122.000 91,060.000 23,003,000 Reserve with Federal Reserve Bank........................................................... Cash in vault....................................................................................................... Net demand deposits on which reserve is computed............................... Time d ep osits.................................................................................................... Government d ep osits.................................... ................................................... ............... ............... ............... ............... T he volum e o f banking business transacted in this D istrict during the past month is indicated by the fol low in g com parative table com piled from inform ation received from the Clearing H ouses in the cities show n: Debits to Individual Accounts, weeks ending: St. L o u i s ......................................................................... .. Debits to Bank Accounts, weeks ending: .. L ou isville......................................................................... M em ph is.......................................................................... Little R o c k ..................................................................... E vansville........................................................................ March 26 April 2 April 9 April 16 $110,801,000 32.806.000 23.489.000 6.793,000 3,691,000 $115,795,000 34.518.000 23,951.000 6.475.000 4,076,000 $131,675,000 33.440.000 23,924,000 7.927,000 4.522,000 $133,782,000 33.830.000 25,954.000 8,506,000 5,655.000 March 26 April 2 April 9 April 16 $123,997,000 41.020.000 22.231.000 5.494.000 2.643,000 $110,164,000 34.019,000 21,585.000 5,197,000 2,072,000 $131,763,000 33,164.000 22,521,000 6,093,000 1,301,000 $128,382,000 35,943.000 22,935,000 6.174.000 1,687,000 In March the Federal Reserve Bank of St. Louis discounted a total o f $185,126,940 o f paper for 171 differ ent member banks, which is an increase o f $69,549,076 over the am ount o f paper discounted during February and an increase o f 4 in the number o f banks accom m odated. T h e discount rates of the Federal Reserve Bank have remained unchanged, except that on A pril 5th rates w ere established for paper secured by W ar Fi nance Corporation bonds. T hose now in effect are as f o llo w s : MEMBER BANK S' C O L L A T E R A L N O T E S: Secured by Liberty Bonds or Treasury Certificates.............................................................. 15 days 16 to 60 61 to 90 9! diys to and !ess days days 6 months 4% 5% 4% RED ISC O U N TS: Secured by War Finance Corporation Bonds........................................................................ Commercial P a p e r ......................................................................................................................... Agricultural or Livestock Paper........................................ ........................................................... 4% 5% 4% 4% 4% *4H% 5M% 4% % 4% % 4% % *4%% 5%% 4^% 4^% 4%% 5%% Bankers' A cceptances purchased at the market rate, subject to agreem ent. *A special rate o f 4 % is made for paper with 16 to 90 day m aturity, secured by Fourth Liberty Loan Bonds, provided such paper has been taken by the m em ber bank at a rate not in excess of the Fourth L ib erty Loan coupon rate. The campaign for the Fifth Liberty Loan was opened on April 21, and will close M ay 10, 1919. T h e] amount of the loan is $4,500,000,000, and the quota assigned to this district is $195,000,000. T he interest man ifested and the eKorts being put forth give promise that this quota will be prom ptly oversubscribed m this district as was done in the case of the previous loans. L IV E STOCK__In the live stock market, increased activity is noted in all kinds of live stock, except ing horses and mules. The report of the St. Louis National Stock Yards for March, 1919, show s increases in the receipts and shipments of cattle, hogs and sheep, in comparison with the same month last year, but decreases in the receipts and shipments of horses and mules. The com parative Rgures show ing the number of' head received and shipped, are as fo llo w s : Cattle March: Receipts . Shipments Hogs Horses and Mules Sheep 1919 1918 1919 1918 1919 1918 1919 1918 82,598 19.891 78.749 17,694 331.699 162,887 320,226 151,769 24,126 3,825 18,124 1,960 15,395 16,139 28,010 26,235 A new high price for hogs was established at the National Stock Yards on A pril 10th, when a top price of $20.85 per 100 pounds was reached. Dealers say the high prices of hogs are due to the enorm ous quan tities of pork being shipped to Europe. POSTAL RECEIPTS— Postal receipts during March in St. Louis show an increase in com parison with the corresponding month last year, but in Louisville, Memphis, Little R ock and E vansville decreases are shown. The comparative figures are as fo llo w s : 1919 St. L o u is ......................................................................................................................... L ouisville........................................................................................................................ Memphis ......................................................................................................................... Little R o c k ..................................................................................................................... Hvansville....................................................................................................................... March $676,511.65 152,955.74 109,438.93 61,572.17 35,136.03 1918 $654,939.34 160,430.56 115,488.57 204,392.12 35,224.74 BUILD IN G — Reports from St. Louis, Louisville, Memphis and Little R ock for the month of March show increases in the number of building permits issued both in com parison with the previous month and the corresponding month last year. The comparative figures are as follow s: 1919 St. L o u is ..........................................................................! . ................................. Louisville ............................................................................................................. Memphis ............................................................................................................... Little R o c k ........................................................................................................... Permits 682 204 194 106 Cost $446,318 223,200 202,575 162,984 March 1918 Permits 606 164 68 Cost $556,136 255,025 130,292 W hile there is some revival taking place in the building industry, it is still considerably b elow norma!. However, real estate dealers report that there are many inquiries regarding property, and increased activity : m this line is anticipated. It is said that architects are beginning to feel business Row their w ay, and while much o f this work has not as yet reached the contractors, it can be expected in their hands in the near future. Rental residence property is practically filled up, and there is a good demand for medium sized homes and bungalows. LABO R \\ ith the development of spring, the labor situation is im proving in this district. The sur plus supply of workmen is being absorbed not only by the industries, but also by the farm ing c o m m u n i t i e s . ^ Reports indicate that the demand for workers in many lines is increasing. There are practically no strikes ^ or labor disturbances i n this district at the present time.
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