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MONTHLY REVIEW O f Agricultural, Industrial, Trade and Financial Conditions in the Eighth Federal Reserve District R e le a se d for P u b lic a tio n O n a n d A fte r th e M o rn in g o f A p ril 2 8 , 1 9 3 4 JO H N S. W O O D , Chairm an and Federal R eserve A g en t FEDERAL RESERVE IR T U A L L Y all measurements of business activity and actual statistics of the various interests reporting to this bank during March and the first half of April reflected a continuance of the upward trends in Eighth District commerce and industry, noted during earlier months this year. D is tribution of merchandise through both wholesale and retail channels was larger in the aggregate than during the similar period immediately preceding, and in considerably larger volum e than a year and tw o years earlier. Except where affected by seasonal influences, output of manufacturing plants in March was well above that of February, and reports cover ing early April reflect further gains. The showing made during the first quarter of the current year was the most favorable for any like period since 1931. In a majority of instances, the increased v ol ume of business has been accompanied by broader profit margins. Quite generally through the district merchants report that a better quality and greater diversity of goods are being taken than has been the case for a number o f years. This is true of both the large urban centers and the country. Increased purchasing power in the south, incident to higher prices of cotton, and other agricultural products, and rental and benefit payments to farmers from the Government’s crop reduction campaign, has served to materially assist business in that general area. Despite the cold weather, Easter trade was above expectations and accounted for the movement of a larger volum e of goods of all descriptions. W holesaling and jobbin g interests reported a fair volum e of reordering of merchandise to fill de mands in certain lines. Taken as a whole the em ployment situation developed moderate betterment over the preceding thirty days. This was ascribable to increased industrial activities, and the absorption of workers in seasonal occupations. March consump tion of electric power by industrial plants in the chief cities of the district showed substantial in creases over a month and a year earlier. Better ment in the iron and steel industry, which started early in the year, was carried further in March and proceeded at an accelerated rate during the first half of April. Output o f steel mills gained V C . M . STEW A RT, Secretary and Ass*t F ed eral R eserve A g en t BANK OF ST* J. V IO N PA P IN , Statistician LO U IS sharply, and jobbing foundries and specialty makers reported an accretion to unfilled orders, despite con tinued heavy shipments of finished products. Pur chases of pig iron and finished steel early in April were stimulated by the desire of consumers to fill their needs before the advance in prices, which became effective around the middle of the month. Taken as a whole, weather conditions have been favorable for agriculture, and preparations for and seeding of spring crops is somewhat in advance of the usual seasonal schedule. In the south the open winter permitted of an unusually large amount of field work. Business of interests handling farm and garden supplies, such as seeds, hand implements, spraying materials, etc., was reported more active than at any like period since the depression started. In states of the Eighth District, sales of fertilizer tags during the first quarter of 1934, according to the National Fertilizer Association, were 129 per cent larger than for the first three months of 1933 and 69 per cent in excess of the first quarter of 1931, total. Grain prices, which had ruled fairly steady during the preceding four or five weeks, declined sharply at mid-April. March retail trade in the Eighth District, as reflected by department store sales in the principal cities, was 38 per cent greater than in February, and 49.5 per cent in excess of the March, 1933, volum e; cumulative total for the first quarter this year showed an increase of 33.4 per cent over the like period in 1933. Combined sales of all whole saling and jobbing interests reporting to this bank in March were slightly below the preceding month, but 52 per cent larger than a year a g o ; first quarter sales of these firms this year were 65 per cent larger than the total for that period in 1933. The dollar value of building permits issued for new construc tion in the five largest cities in March was 35 and 72 per cent greater, respectively, than a month and and a year earlier, and the cumulative total for the first quarter was approximately 104 per cent above that of the same period in 1933. Construction con tracts let in the Eighth District in March showed an increase of 185 per cent over February and of 242 per cent over March, 1933; for the first quarter the total was 163 per cent larger than a year ago. Debits to checking accounts in March exceeded those of February by 12.4 per cent. A ccordin g to officials of railroads operating in this district, freight traffic continues in measurably larger volum e than at the corresponding period in 1933 and slightly larger than in 1932. Increases in both comparisons extend to virtually all classifica tions, with a particularly favorable showing being made by miscellaneous freight, forest products and fuel. The movement of coal and coke has been stim ulated by the belated cold weather, also, by heavier demands from industrial users. March loadings of livestock fell below a year and tw o years earlier, which fact is ascribed partly to the steadily increas ing number of cattle, hogs and sheep being trans ported by trucks. For the country as a whole, load ings of revenue freight for the first fourteen weeks this year, or to A pril 7, totaled 8,103,535 cars, against 6,741,356 cars for the corresponding period in 1933 and 7,881,413 cars in 1932. The St. Louis Terminal Railway Association, which handles inter changes for 28 connecting lines, interchanged 81,391 loads in March, which compares with 68,837 loads in February, and 62,045 loads in March, 1933. D ur ing the first nine days of April the interchanges amounted to 21,418 loads, against 23,012 loads dur ing the first nine days o f March and 18,331 loads during the corresponding period in 1933. Passenger traffic o f the reporting lines increased 25 per cent in March, as compared with the same month in 1933. Estimated tonnage o f the Federal Barge Line between St. Louis and New Orleans in March was 81,000 tons, against 65,978 tons in February and 79,499 tons in March, 1933. Collections during March and early April quite generally through the district maintained the high rate o f efficiency which has existed since last fall. A s contrasted with a year ago, very marked better ment was noted, but it will be recollected that in the earlier period the usual instrumentalities of exchange were hampered by disabilities incident to the National Banking Holiday. W holesalers and jobbers of boots and shoes, dry goods and other lines with which April is an important settlement month, report payments relatively the largest for that period since 1930. In all wholesaling lines investigated, reports indicate a steadily decreasing trend in losses from failures and weak accounts. Further betterment was noted in collections in the tobacco districts. Retailers in the principal urban centers report some spottiness in payments, but with average somewhat higher than during the preceding thirty days. Questionnaires addressed to representative interests in the several lines scattered through the district show the follow ing results: Excellent Good Fair Poor March, 1934......... 5.1% 42.3% 50.5% 2.1% February, 1934......... 5.2 36.0 55.7 3.1 March, 1933......... 0 10.7 52.5 36.8 Commercial failures in the Eighth Federal R e serve District in March, according to Dun and Bradstreet, numbered 37, involving liabilities of $754,076, against 32 defaults in February with lia bilities of $289,371, and 111 insolvencies involving liabilities of $2,696,132 in March, 1933. M AN U FA C TU R IN G A N D W H O L E S A L IN G Boots and Shoes — March sales of the reporting interests were 15 per cent less than for the preced ing month, but 28 per cent greater than the March total a year ago. Inventories decreased 20 per cent between March 1 and April 1, and on the latest date were slightly larger than a year ago. For the first quarter this year aggregate sales exceeded those of the same period in 1933 by approximately 60 per cent. Part of this increase is ascribed to higher prices. The movement of styled goods and special ties for the Easter trade was reported in larger vol ume than at any time since the beginning of the depression. There has been some slowing in produc tion, seasonal in character, since the middle of March. Factory operations were 85 to 90 per cent of capacity. Clothing — Advance sales of apparel for sum mer and early autumn distribution continue to run in considerably heavier volume than a year and tw o years earlier. This is true particularly in the south, where retailers are buying on a freer scale than at this particular season in a number of years. Demand for w ork clothing in both the large indus trial centers and rural areas is in considerable v ol ume. March sales of the reporting clothiers were 58.6 per cent larger than for the same month in 1933, and 19.1 per cent greater than the February total this year. Stocks decreased 8 per cent between March 1 and A pril 1, and on the latest date were about one-half larger than a year earlier. Drugs and Chemicals — For the tenth succes sive month, March sales in this classification were in larger volume than during the corresponding period a year earlier. W hile betterment was noted gener ally through all descriptions of drugs and chemicals, relatively the most favorable showing was made in heavy materials taken by the manufacturing trade. Demand for cosmetics, toilet preparations and other luxuries was reported much more in evidence than at this time during the past several years. March sales of the reporting firms were larger by 49 per cent than for the same month in 1933, and 11 per cent in excess of the February total this year. In** ventories showed little variation between March 1 and April 1, and on the latter date were 31.5 per cent larger than a year ago. Dry Goods — Business ascribable to Easter requirements was the largest in a number of years, and in addition marked improvement was noted in the more stable lines as contrasted with a year and tw o years earlier. Unfavorable weather in March had a tendency to restrict trade in some sec tions of the district. Sales of the reporting firms in March showed an increase of approximately threefourths over the same month in 1933, and a decrease of 13 per cent under the February aggregate this year. The decrease in the month-to-month compari son was seasonal, and somewhat smaller than aver age. Stocks on April 1 were 16 per cent and 97 per cent larger, respectively, than a month and a year earlier. Electrical Supplies — March sales of the report ing firms showed an increase of 77.5 per cent over the same month in 1933, and of 34 per cent as com pared with February this year. Inventories increased further, stocks on April 1 being 3 per cent greater than a month earlier and 19 per cent in excess of those on April 1, 1933. W hile all sections showed betterment in both sales comparisons, largest gains were reported in electric refrigeration, radio and household appliances. Installations for new build ings remain relatively quiet. Flour — Production at the twelve leading mills of the district in March totaled 263,960 barrels, against 252,789 barrels in February and 306,680 barrels in March, 1933. Purchasing of all grades of flour continues largely on a requirement basis. Both dealers and consumers are disposed to await more definite information relative to prospects for the grow ing winter wheat crop before increasing their commitments. Prices declined at m id-April in sym pathy with a sharp break in the cash wheat market. The export situation developed no change from trends noted earlier in the year. Mill operations were at from 50 to 55 per cent of capacity. Furniture — Business in this classification con tinued the steady betterment which has been in progress since last fall. March sales of the report ing interests were 15 per cent larger than in Febru ary, and 73 per cent in excess o f the March, 1933, total. Stocks decreased slightly during the month, but on April 1 were larger by 60 per cent than on the same date in 1933. Demand for radio cabinets has expanded, and there is also a more active m ove ment of household furniture and furnishings than heretofore. Groceries — March sales of the reporting firms were 8 per cent larger than for the preceding month, and 32 per cent greater than in March, 1933. In ventories increased 2 per cent between March 1 and April 1, and on the latest date were 35 per cent greater than a year ago. In the yearly sales com parison, a considerable part of the increase is attrib utable to the larger volume of buying in the country, particularly, in the typically cotton areas. Quite generally the comment is made by reporting firms that a greater diversity and higher grades of mer chandise is being taken than was the case a year and tw o years earlier. Hardware — Follow ing the seasonal trend, March sales of the reporting firms were 12 per cent larger than in February, and the total was 44 per cent in excess of that in March, 1933. Stocks on A pril 1 were 3 per cent and 35 per cent larger, respectively, than a month and a year earlier. M er chants in all sections of the district report an active demand for garden tools, hand implements, and the general line of commodities used in the rural areas. Moderate improvement has developed in sales of builders’ tools and hardware during the past six weeks. Iron and Steel Products — Activities in the iron and steel industry in this district during March and the first half of April were characterized by the steadily upward trend which has been in effect since the beginning of the year. Virtually all sec tions of industry in this area participated in the betterment, an exception being building materials, which have failed to respond to the usual seasonal influences. In point of output at foundries, mills, machine shops and other ferrous metal working plants, according to interests reporting to this bank, March represented the largest total for any month this year, and was substantially greater than the small aggregate of the corresponding period in 1933. The melt of pig iron and scrap exceeded that of February by a fair margin, and was more than onehalf again as large as a year ago. Stimulated by price advances, subsequent to wage increases granted by many steel manufacturers, purchasing of finished and semi-finished steel during late March and the first half of April was in considerable volume, and embraced a broad variety of com m odi ties. Commitments for second quarter requirements are reported the largest for any similar period since 1930. Ordering of raw materials, notably pig iron, and iron and steel scrap, was also on a liberal scale. Requirements of farm implement manufacturers and the automotive industry continue to expand. Business of jobbin g foundries increased, with new orders reflecting chiefly miscellaneous requirements. Despite temporary interruption due to weather con ditions, iron and steel warehouse and jobbing interests report March sales and deliveries the largest for the period since 1930. There has been steady improvement in demands of the general manufacturing trade, and goods for use in the rural areas are m oving in relatively large volume, as con trasted with the three preceding years. Heavier purchasing by the railroads was reflected in a higher rate of activity at steel mills and foundries special izing in this business. In addition to the mills which recently resumed operations, an additional plant began production on part-time schedules on April 16, after having been closed since the fall of 1932. T he advance in steel prices which became effective between A pril 12 and 15, affected a number of im portant commodities, including sheets, strips, billets, slabs, bars, plates, plain wire, long terns and cer tain tubular goods. T in plate remained unchanged. P ig iron was advanced $1 per ton, but due to heavier offerings, scrap prices in this area declined from the year’s peak in late February. For the country as a whole, production of. pig iron in March, accord ing to the Magazine “ Steel” , totaled 1,625,588 tons, against 1,270,792 tons in February, and 542,013 tons in March, 1933. Steel ingot production in the United States in March aggregated 2,797,194 tons against 2,213,569 tons in February and 909,886 tons in March, 1933. A U T O M O B IL E S Combined passenger car, truck and taxicab pro duction in the United States in March was 335,993, against 235,384 (revised figure) in February, and 118,609 (revised figure) in March, 1933. A ccording to dealers reporting to this bank, distribution o f automobiles in the Eighth District in March developed marked improvement, both as compared with the preceding month and a year ago. The large increase in sales over February was at tributable partly to carryover of orders against which dealers were unable to effect deliveries.' In both comparisons, increases were general through all classes of makes, and well distributed geograph ically. Relatively the largest gains were reported by dealers in the south. A s has been the case for the past several months, demand centers mainly in the cheap priced field, but decided betterment is noted in medium priced vehicles, particularly where new models and equipment are featured. Reflecting betterment in business conditions, the demand for trucks o f all descriptions continues active, March sales being nearly twice as large as a year earlier and approximately 90 per cent greater than the February total this year. Business in replacement part and accessories showed little change from the preceding month, but was in measurably larger v ol ume than in March, 1933. March sales of new passenger cars by the re porting dealers were 86 per cent larger than for the same month in 1933, and 113 per cent in excess of the February total this year. Reflecting freer fac tory deliveries, inventories m oved upward, stocks on April 1 being 16 per cent greater than a month earlier and approximately 30 per cent larger than a year ago. T h e situation in the used car market was reported less satisfactory than that for new vehicles, due partly to seasonal influences, but more particularly to a lack of desirable cars and of makes for which demand exists. March sales o f second hand cars were 12 per cent larger than in February and about 36 per cent greater than in March, 1933. Stocks of salable secondhand cars on April 1 were 16 per cent and 10 per cent larger, respectively, than a month and a year earlier. A ccording to dealers reporting on that item, the ratio of deferred pay ment sales in March to total sales was 51 per cent, against 49 per cent in February and 52 per cent in March, 1933. B U IL D IN G The dollar value of permits issued for new con struction in the five largest cities of the district in March was 34.7 per cent more than in February, and 71.6 per cent greater than the March, 1933, total. A ccording to statistics compiled by the F. W . D odge Corporation, construction contracts let in the Eighth Federal Reserve District in March amounted to $16,717,591 which compares with $5,864,233 in February and $4,890,487 in March, 1933. Production of portland cement for the country as a whole in March totaled 5,257,000 barrels against 4,168,000 barrels in February, and 3,684,000 barrels in March, 1933. Building figures for March fo llo w : New Construction Permits *Cost 1934 1933 1934 1933 Evansville .. 11 120 $ 10 $ 15 2 Little Rock 8 7 2 Louisville .. 45 22 26 18 Memphis ... 178 101 73 55 St. Louis.... I l l 227 107 97 Repairs, etc. Permits *Cost 1934 1933 1934 1933 138 40 $ 37 $ 11 88 16 19 5 33 25 27 13 128 100 63 38 170 189 76 102 Mar. totals.. 353 347 $ 338 $ 197 Feb. “ ... 227 228 251 133 Jan. “ ... 206 246 320 115 *In thousands of dollars (000 omitted). "5 5 7 404 352 370 269 277 $ 222 302 177 $169 129 152 R E T A IL T R A D E The condition of retail trade is reflected in the follow ing comparative statements showing activities in the leading cities of the d istrict: Department Stores Stocks Net sales comparison on hand Mar. 1934 3 months ended Mar. 31, 1934 comp, to Mar. 31, 1934 to comp, to Mar. 1933 same period 1933 Mar. 31. 1933 El Dorado, A r k ..+ 69.6% + 5 1 .9 % + 6.8% Evansville, In d ....+ 77.9 + 4 0 .3 + 17.6 Fort Smith, Ark..+- 56.9 + 4 4 .0 + 18.1 Little Rock, Ark.+ 100.9 + 58.7 + 4 1 .1 Louisville, K y .....4“ 42.3 + 2 2 .2 + 7.7 Memphis, T e n n ...+ 58.2 + 3 7 .9 + 2 3 .3 Quincy, 111........... + 60.3 + 4 1 .8 + 13.9 St. Louis, M o......+ 43.4 + 3 1 .0 + 2 2 .3 Springfield, M 0 . . . + 52.8 + 4 1 .0 + 5.9 All Other Cities.. 4- 68.4 + 4 5 .6 + 3 1 .4 8th F. R. District+- 49.5 + 3 3 .4 + 2 1 .8 Stock turnover Jan. 1, to Mar., 31, 1934 1933 .62 .44 .43 .33 .55 .44 .57 .47 .69 .61 .78 .63 .64 .49 .88 .78 .42 .29 .64 .60 .78 .67 Retail Stores Stocks Net sales Comparison on hand Mar. 1934 3 months ended Mar. 31, 1934 comp, to Mar. 31, 1934 to comp, to Mar. 1933 same period 1933 Mar. 31, 1933 ■ ' ....+ 1 1 7 .3 % + 6 3 .7 % + 3 7 .9 % Men’s Furnishings Boots and Shoes .................+ 39.6 + 4.4 — 8.5 Stock turnover Jan. 1, to Mar. 31, 1934 1933 " — .60 .48 .71 .56 CO N SU M PTIO N OF E LE C T R IC ITY Public utilities companies in the five largest cities of the district report consumption of electric current by selected industrial customers in March as being 17.2 per cent greater than in February and 21.5 per cent more than in March, 1933. Detailed figures fo llo w ; No. of Mar., Feb., Custom1934 1934 ers * K .W .H . * K .W .H . 2,362 1,984 Evansville .... 40 1,251 1,191 Little Rock... 35 6,523 5,651 Louisville .... 85 Memphis ..... 31 1,692 1,534 St. Louis......195 13,651 16,318 Totals .......... 386 28,146 *In thousands (000 omitted). **Revised figures. 24,011 Mar. 1934 comp, to Feb. 1934 + 19.1% + 5.0 + 15.4 + 10.3 + 19.5 Mar., Mar. 1934 1933 comp, to *K .W .H . Mar. 1933 1,489** + 5 8 .6 % 1,084 + 15.4 22.1 5,341** 1,102 + 53.5 14,158** + 15.3 + 23,174 + 17.2 + 2 1 .5 P O STAL RECEIPTS Returns from the five largest cities of the dis trict show an increase in combined postal receipts for the first three months this year o f 4 per cent over the corresponding period in 1933 and a decrease of 6.8 per cent under the final quarter in 1933. D e tailed figures fo llo w : Mar. 31, 1934 Evansville ........$ 141,196 Little Rock........ 182,751 Louisville .......... 605,216 Memphis .......... 499,219 St. Louis........... 2,320,894 Totals ............ $3,749,276 For Quarter Ended Sept. 30, Dec. 31, 1933 1933 $ 130,008 $ 139,549 153,540 171,715 617,313 540,284 448,329 543,508 ' 2,107,190 2,562,155 , Mar. 1934 Mar. 31, comp, to Mar. 1933 1933______________ $ 130,563 + 8.1% 162,088 + 1 2 .7 547,544 + 1 0 .5 463,886 + 7.6 2,302,362 + .1 $4,024,699 $3,606,443 $3,388,892 + 4.0 A G RICU LTU R E The report of the U. S. Department of A gricul ture relative to planting intentions as of March 1, 1934, indicates that in states entirely or partly with in the Eighth District, acreages of the principal field crops will be smaller than in each of the three pre ceding years. A s contrasted with 1933, reductions are particularly marked in the case of corn and tobacco, both of which productions are involved in the Government’s curtailment program. Indicated acreages of tame hay and oats are heavier than a year ago. Sweet potatoes, white potatoes, and pea nuts have indications for somewhat larger acreages, this being in conform ity with the general trend to diversify and rotate crops which has been in effect in recent years. Total acreage of the chief crops, including winter wheat seeded last fall, and exclud ing cotton, is estimated at 4.9 per cent less than in 1933, and 10 per cent and 9.5 per cent less than the aggregate harvested in 1932 and 1931, respectively. The follow in g comparative table shows in tended plantings in 1934 by farmers in states of this district and the number of acres of the several crops harvested in the three preceding y e a rs: 1931 Com ...................... Oats ...................... Rice ....................... Barley ................... 331,000 Potatoes ............... .... Sweet Potatoes.... 763,000 Tobacco ................. ,... Peanuts ................. Tame H ay............ ....10,150,000 Winter Wheat..... .... 5,812,000 193230,609,000 8,775,000 163,000 460,000 335,000 238,000 580,000 82,000 10,138,000 5,274,000 1933 28,591,000 7,809,000 153,000 390,000 330,000 181,000 661,000 74,000 10,117,000 5,351,000 1934 25,494,000 7,906,000 150,000 224,000 359,000 202,000 472,000 83,000 10,393,000 5,731,000 56,654,000 53,657,000 51,014,000 General Farm Conditions — Follow ing one of the mildest and m ost open winters in recent years, late February and a considerable part of March brought freezing temperatures, accompanied by heavy precipitation in the form of snow and rain. Taken as a whole the belated cold weather was favorable for agriculture, as it tended to prevent too rapid growth and development of vegetation, and the snow and rain were of distinct benefit, especially where moisture had been deficient earlier in the season. Generally throughout the district soil con ditions are favorable for final field preparations and the seeding o f spring crops. Prior to the cold weath er an unusual amount of work had been accom plished, both in the cotton areas and the more northerly stretches of the district. Winter Wheat — In its repbrt as of April 1, the U. S. Department of Agriculture estimated produc tion of wheat in states including the Eighth D is trict at 81,097,000 bushels, which compares with 71.766.000 bushels harvested in 1933, and the 5-year average (1927-1931) of 85,397,000 bushels. This estimate makes no allowance for the effect upon wheat acreage of the reopening of the wheat cam paign, or for adjustments in acreage which farmers may find necessary in compliance with wheat con tracts. Reports from all sections of the district indi cate a relatively high condition for the crop. U n favorable planting conditions in some areas have been offset by auspicious weather during the win ter. General precipitation since the middle of March has resulted in improvement in soil condi tions, and almost universally the crop has attained good growth and is healthy in color. Considerably less than the average damage from winter kill is indicated, and insect infestation is less in evidence than at this time last year. Stocks of wheat on farms in states of the district as of April 1 are esti mated by the Department at 9,968,000 bushels, a decrease of 28 per cent as compared with a year ago, and 35 per cent below the average of the three pre ceding years. Corn — Preparations for the new crop have made good headway, though some delay has been occasioned by cold weather and heavy rains since mid-March. Planting has commenced in the south ern sections of the district, but the recent cold weather has held germination in check. W eather permitting, seeding operations will be general by the end of April. In its annual survey of farm re serves, the Government estimates the amount of corn on farms in states of the Eighth District as of April 1, at 269,397,000 bushels, which compares with 441.083.000 bushels in 1933, 412,283,000 bushels in 1932 and 182,467,000 bushels in 1931. Fruits and Vegetables — W ith the exception of injury sustained by peach buds in sections of Illinois, Indiana and Missouri from the late freezes, the outlook for fruits in this district at the middle o f A pril was mainly favorable. In the early straw berry states, Mississippi, Arkansas and Tennessee, the 1934 crop is estimated at 3,165,000 crates, an in crease o f 64.5 per cent over the 1933 production. N o official estimate of the condition of apples has been made, but reports from county agents and orchardists in various sections of the district indi cate little damage to trees during the past winter, and in the southern states bloom has been abundant and prospects are for above average yields. The April 1 condition of early potatoes is generally above that of a year ago. February and March freezes injured some early plantings, which will slightly affect yield, but the chief results will be delay in maturity. L ive Stock — A s of April 1, according to the U. S. Department of Agriculture, there were about 12 per cent less cattle on feed for market in the Corn Belt States than on the same date in 1933, representing in numbers around 170,000 head. Com pared with the number on feed on April 1, 1932, there was an increase of about 82,000 head. The decrease is general over the entire area, and is in part a reflection of the corn situation. Large quan tities o f the 1933 corn crop, which was 15 per cent under average in the Corn Belt, have been sealed on farms to secure Federal Loans, with the result that corn prices are relatively high as compared with cattle prices. For the first quarter of 1934, shipments of stocker and feeder cattle inspected at stockyards into the Corn Belt were 14 per cent smaller than for the same period a year earlier. Receipts and shipments at St. Louis as reported by the National Stock Yards were as fo llo w s: Receipts Shipments Mar., Feb., Mar., Mar., Feb., Mar., 1934 1934 1933 1934 1934 1933 Cattle and Calves...... 85,772 81,028 67,72940,708 36,749 33,985 Hogs ............................202,216 201,857 224,256 126,977 142,897 136,994 Horses and Mules...... 6,565 8,270 5,031 6,723 8,546 5,398 Sheep ............................ 41,035 27,112 36,011 4,960 7,977 10,474 Cotton— Generally in this district, preparations for the new crop have been completed, and seeding has made considerable headway in the southern counties. W hile there has been some interruption to field work during the past month, earlier condi tions were unusually auspicious and taken as a whole, progress of the crop is well up to the sea sonal schedule. In practically all sections, reports continue to indicate much freer use of fertilizers than has been the case in recent years. Demand for raw cotton showed little change as contrasted with the preceding thirty days, and prices fluctuated within a relatively narrow range. The average, however, continued approximately twice as high as during the corresponding period a year and two years earlier. In the St. Louis market the middling grade ranged from 11.50c to 11.95c per pound be tween March 16 and April 16, closing at 11.50c on the latter date, which compares with 11.90c on March 16, and 6.45c on April 13, 1933. Receipts at Arkansas compresses from August 1, 1933, to A pril 13, 1934, totaled 986,997 bales, against 1,203,745 bales for the corresponding period a year earlier. Stocks on hand as of April 13 were 414,022 bales against 426,278 bales on the corresponding date a year ago. T obacco — A s of April 14, burley tobacco mar kets of the district had closed, except for minor sales in Lexington and Owensboro, Ky. The total 1933 burley crop is estimated at 385,000,000 pounds. Indications are that at the final closing of all mar kets, there will be less burley tobacco in farmers’ hands than for any crop in recent years. This is ascribed partly to the fact that the farmers are re quired to show actual 1933 sales in order to secure their acreage allotment for the 1934 crop. Late sales of dark fired tobacco in the Clarks ville, Springfield and H opkinsville markets were the largest of the season. Good to fine quality sold from $27 to $38.50 per cwt., the highest prices of the season. There has been a ready sale for all tobacco offered. A s of April 18 it was estimated that approximately 88 per cent of the dark fired crop had been sold and delivered in the eastern district and about 90 per cent in the wrestern district. T obacco plant beds were sown in late February and in the intervals of favorable weather in March. Plants are com ing up and are mainly healthy, with good prospects for early development and trans planting. A t the middle of April much ground had been prepared for this year’s crop. C O M M O D IT Y P R IC E S Range of prices in the St. Louis market between March 15, 1934, and April 16, 1934, with closing quotations on the latter date and on April 15, 1933, fo llo w : High Wheat " May ...................per bu..$ .8 5 ^ : July ....................i “ .86 % *Sept......................... “ .8 7Vz No. 2 red winter “ .91 No. 2 hard “ “ .8834 Corn *May ..................... “ .51^6 *July ..................... “ .53 H *Sept......................... “ .5 5 ^ No. 2 mixed ..... “ .50 No. 2 white ...... “ .52 Oats No. 2 white ...... “ .37 Flour Soft patent......... per bbl. 6.90 Spring “ ......... “ 6.90 Middling cotton....per lb. .1195 Hogs on hoof......per cwt. 4.65 *Nominal quotations. **Close, as of April 13, 1933. Low Close April 16, 1934 April 15, 1933 •77^4 .7754 $ .79 .82 .8334 .79 .82 .83 •4234 .45§* .4754 .47J4 .66 .64 .4254 .32 •3454 .3654 @ .36$^ .33V2 @ ,34'A .37 @ .38 .49 .2954@ -32 6.10 6.10 .1150 6.10 6.10 2.00 2.00 .6234 •63% .64 @ .67 @ .65 .8334 ASVs .4754 •4734 .49 .29^4 @ .79'/2 .7 9 % * @ 6.50 @ 6.50 .1150 @ 4.00 .22 3.75 2.25 2.75 @ .2254 @ 3.90 @ 4.50 **.0645 @ 3.75 FIN A N C IA L Except for slight changes, traceable to seasonal influences, trends in the banking and financial situa tion in this district during late March and the first half of April were practically identical with those during the similar period immediately preceding, and, in fact, since the first of the present year. D e mands for mercantile and industrial interests con tinue in limited volume, while loanable resources of commercial banks in both the large cities and smaller communities increased further. There was a considerable volume o f liquidation of commercial loans with banks in the chief distributing centers, particularly with institutions which supply accom modations to boot and shoe, dry goods and other wholesaling and jobbing lines with which April is an important settlement month. Less than the ordi nary demand at this time of year for financing agri cultural operations was in evidence. Country banks further reduced their borrowings from city corre spondents and in many instances are seeking invest ments for their surplus funds. Total loans and investments of reporting mem ber banks in the principal cities decreased 5 per cent in the four-week period ended April 11, and on that date were 7.8 per cent larger than a year a g o ; a slight decrease in their demand deposits and an inrease in time deposits resulted in a decrease of 1.8 per cent in total deposits for the period. Reserve balances continued the steady upward trend o f re cent months, and on the second report date in April were approximately 106 per cent greater than a year ago. The amount of savings deposits held in selected banks as of April 4 was 2.8 per cent greater than on March 7 and 9.7 per cent in excess of total April 5, 1933. Changes in the statement o f the Federal Reserve Bank of St. Louis between March 18 and April 18 were relatively unimportant. The total volum e o f credit extended decreased $807,000, due to smaller rediscounts for member banks and hold ings o f open market paper. Interest rates remained at or about the low levels prevailing in recent months. A t St. Louis banks, as of the week ended April 15, current quo tations were as fo llo w s : Customers’ prime com m er cial paper 3 to 5y2 per cent; collateral loans, 4 to 6 per ce n t; loans secured by warehouse receipts, 2 to 6 per cent; interbank loans, 2 to 6 per cent and cattle loans, 5 to 6 per cent. Condition of Banks — Loans and discounts of thfe ^reporting member banks on April 11, 1934, showed a decrease of 1.6 per cent as contrasted with March 14, 1934. Deposits decreased 1.8 per cent between March 14, 1934 and April 11, 1934 and on the latter date were 26.1 per cent greater than on April 12, 1933. Composite statement fo llo w s : ♦Apr. 11, 1934 Number of banks reporting............ 19 Loans and discounts (incl. rediscounts) Secured by U. S. Govt, obligations and other stocks and bonds....$ 81,326 All other loans and discounts.... 135,445 ♦Mar. 14, 1934 19 ♦Apr. 12, 1933 19 $ 86,906 133,452 $ 98,011 139,518 Total loans and discounts.................$216,771 Investments U . S. Govt, securities...................$183,124 Other securities.............................. 95,949 $220,358 $237,529 $204,711 96,876 $117,607 104,668 Total investments...............................$279,073 $301,587 $222,275 Reserve balance with F. R. Bank..$ 85,131 Cash in vault........................................ 7,627 Deposits Net demand deposits..................... 338,690 Time deposits.................................. 162,977 Government deposits..................... 31,086 $ 71,620 7,992 $ 41,313 7,088 342,179 162,352 37,720 260,197 157,964 4,200 Total deposits.......................................$532,753 $542,251 $422,361 Bills payable and rediscounts with Federal Reserve Bank................................. $ 50 *In thousands (000 omitted). The total resources of these banks comprise approximately 61.6% of all member banks in this district. Federal Reserve Operations — During March the discount rate of the Federal Reserve Bank of St. Louis remained unchanged at 2y2 per cent. Changes in the principal assets and liabilities of this institu tion appear in the follow ing table: ♦Apr. 19, 1934 246 238 .. 93,200 128 ♦Mar. 19, 1934 $ 245 993 93,200 128 $ 93,812 93,812 Total Bills and Securities.......................$ $ 94,566 $ 79,813 ..$197,524 .. 148,876 .. 134,024 .... 3,195 $175,903 116,097 136,620 10,274 $153,037 79,105 149,565 39 69.8% 69.6% 66.9% ..$ Bills bought U. S. Securi F. R. Notes in circulation.... F. R. Bank Notes in circuls Ratio of reserve to deposits and F. R. Note Liabiliti ♦In thousands (000 omitted). ♦Apr. 19, 1933 $ 4,333 9,438 65,832 210 Debits to Individual Accounts — The follow ing table gives the total debits charged by banks to checking accounts, savings accounts, certificates of deposit accounts and trust accounts of individuals, firms, corporations and U. S. Government in lead ing cities of the district. Charges to accounts of banks are not included. ♦Mar., 1934 Natl. ..$ 17,624 El Dorado, Ark.. .. 3,437 Evansville, I , 15,923 Fort Smith, i , 7,906 Greenville, ft .. 3,080 Helena, Ark.. .. 1,680 Little Rock, .. 21,843 Louisville, K; .. 149,867 ,. 104,783 Owensboro, Ky.. „ 3,826 Pine Bluff, Ark.. .. 5,147 5,335 Quincy, 111........... .. , 435,203 1,473 Sedalia, Mo... Springfield, ft 11,126 **Texarkana, ..... 5,505 ..$793,758 ♦Feb., 1934 $ 15,846 3,160 13,255 7,896 3,289 1,413 18,460 135,004 92,362 3,611 5,418 4,513 387,747 1,235 8,501 ♦Feb., 1933 $ 14,391 3,093 12,280 6,039 2,732 913 13,914 100,810 60,633 2,836 3,434 3,603 320,316 1,182 7,576 Mar., 1934 comp, to Feb. 1934 Feb. 1933 4-11.2% -f- 8.8 + 2 0 .1 + 0.1 — 6.4 + 18.9 + 18.3 + 11.0 + 13.4 + 6.0 — 5.0 + 18.2 + 12.2 + 19.3 + 30.9 4,749 4,657 + 15.9 + 18.2 $706,459 $558,409 + 12.4 + 4 2 .1 ♦In thousands (000 omitted). ♦♦Includes one bank in Texarkana, Texas not in Eighth District. NOTE: No debit figures reported for March, 1933. (Compiled April 23, 1934) (-22.5% -11.1 -29.7 -30.9 -12.7 -84.0 -57.0 -48.7 -72.8 -34.9 -49.9 -48.1 -35.9 -24.6 -46.9 BUSINESS CONDITIONS IN T H E U N ITED STATES Volume of industrial production increased further in March and there was considerable growth in factory employment and payrolls. The general level of commodity prices showed little change between the middle of March and the middle of April, but in the third week of April there was a sharp decline in grain prices. PRODUCTION AND EM PLO YM ENT — Output of manu factures and minerals, as measured by the Federal Reserve Board’s seasonally adjusted index of industrial production, ad vanced from 81 per cent of the 1923-1925 average in February to 84 per cent in March. This advance reflected chiefly increases tinued large volume of coal shipments, which usually decline March. In the early part of April, total car loadings shov decline, reflecting «a sharp reduction in coal shipments. 7 £ volume of trade at department stores increased in March b; isiderably more than the estimated seasonal amount, after * ance for the early date of Easter this year. PRICES — The general level o f wholesale commodity prictw, as measured by the index of the Bureau of Labor Statistics, was 73.3 per cent of the 1926 average in the week ending April 14 as compared with 73.8 per cent in the week ending March 10. During Index number of industrial production, adjusted for seasonal variation (1923-1925 averagers 100.) Latest figure, March, preliminary 84. Indexes of the United States Bureau of Labor Statistics. By months 1929 to 1931; by weeks 1932 to date. (1 9 26 = 1 0 0 .) Latest figures April 14, farm products 60.5, foods 65.8, other commodities 78.9. o f more than the usual seasonal amount in the output of steel, automobiles, and lumber and an increase contrary to seasonal tendency in the output of coal. Production of textiles showed little change in volume on a daily average basis. In the early part of April, activity at steel mills and auto mobile factories increased further, according to trade reports, while coal production declined by more than seasonal amount. Volume of employment at factories increased further between the middle of February and the middle of March by about 4 per cent, an amount larger than is usual this season. Employment on the railroads and at mines also showed an increase. The num ber on the payrolls of the Civil W orks Administration was re duced from about 3,700,000 in the middle of February to about 2,400,000 in the middle of March and 1,900,000 at the end of the month. this period prices o f steel, copper, and automobiles advanced, while prices of farm products decreased somewhat. In the third week of April, wheat prices declined sharply and there were also declines in the prices of other grains, cotton and silver. BANK CREDIT — During the four weeks ending April 18 member bank reserve balances increased by $220,000,000, raising the volume of reserves in excess of legal requirements +.© $1,600,000,000. This increase reflected a growth of $105,000,000 in the monetary gold stock and further disbursements by the Treas ury of funds from its cash holdings and its deposits with the Reserve banks. At reporting member banks in leading cities an increase of $400,000,000 in net demand and time deposits for the four week period ending April 11 reflected chiefly the deposits by the public B ILL IO N S OF DO LLARS Three month moving averages of F. W . Dodge data for 37 Eastern States, adjusted for seasonal variation. Latest figures based on data for January and February and estimate for March. The value of construction contracts awarded in March, as reported by the F. W . Dodge Corporation, showed a considerable increase from the low level of February, followed in the first half of April, by a decline. For the first quarter as a whole, the value of contracts was somewhat smaller than in the last quarter of 1933; publicly-financed projects continued to make up about three-fourths of the total. DISTRIBU TIO N — Volume of freight-car loadings showed a further increase in March, reflecting chiefly seasonal increases in shipments of merchandise and miscellaneous freight and a con B ILL IO N S OF DOLLARS Wednesday figures for reporting member banks in 90 leading cities. Latest figures are for April 11. o f funds disbursed by the Treasury, as well as a growth in bank ers’ balances; government deposits were reduced by about $200,000,000. Holdings by these banks of securities, other than United States Government obligations, increased by $64,000,000 and their loans both on securities and “ all other” also increased sYig^b’ with the consequence that total loans and investment? showed! growth of $100,000,000 for the period. Money rates in th e o p t / market declined further in April. Rates on prime 4-6 month com mercial paper were reduced from a range of 1-1^4 per cent to 1 per cent, and rates on 90-day acceptances were reduced from % per cent to a range of per cent. Yields on Government securities also declined.
@FedFRASER