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FEDERAL RESERVE BANK OF ST. LOUIS MONTHLY REPORT ON GENERAL BU SIN ESS CONDITIONS IN FEDERAL RESERVE DISTRICT NO. 8 Released for Publication On and After the Morning of April 29, 1922 W I L L I A M McC. M A R T IN , CHAIRMAN OF THE BOARD AND FEDERAL RESERVE AGENT C C O U N TS relative to the condition of busi ness in this district during the past thirty days vary considerably in the several lines investigated. W hile as a whole general business has continued the steady improvement noted during the three months immediately preceding, the better ment is not universal, several important lines report ing a decided slowing down during March and early April. Unfavorable weather has held back seasonal activity in the distribution of merchandise, and merchants and manufacturers complain of the unwillingness of their customers to purchase in quantity, or more than they can dispose of from week to week and month to month. The question of prices continues to play an important part, and while confidence in values now is greater than at any time since the downward reaction set in, there is still enough doubt and uncertainty left to hamper the free movement of goods into consumption. Notable improvement has taken place in the demand for and movement of goods based on iron and steel. Activities at mills and foundries have gained impetus, and during the past six weeks sales of pig iron, scrap and other raw materials used by these industries were larger than in any like period in more than eighteen months. A m ong the other lines which have either held their own or reported improvement may be mentioned boots and shoes, woodenware, clothing, groceries, candv, automo biles and hardware. Dullness is reported in whole sale drygoods, drugs, millinery, flour and bakery products, electrical supplies and fire clay products. D rygoods interests show decreases in volume of business, both as compared with the preceding month and the corresponding period a year ago. A considerable volume of returned goods and some cancellations of orders are reported in this line. Specifically results of the coal miners' strike, which commenced April 1, have not been felt save in the mining communities. Industrial and other consumers of coal and coke throughout the district had made ample provision against the expected interruption of supplies, and reserves on hand are sufficient to last from six weeks to tw o months, and in some instances longer. No factories have been obliged to close down because of lack of coal, and the only additions to the unemployed in the district have been at the mines and in agencies of fuel distribution. Morally, however, effects of the strike, are noticeable in a tendency to emphasize the conservatism which has prevailed in business during recent months and to cause further post ponement in certain building and purchasing pro grams. A O f greater importance than the coal strike in its influence on business during the past few weeks has been the high water. Flood conditions along the Mississippi River and its tributaries, great and small, have been the worst in manv years. Broad areas of farm land have been inundated, and great damage has been wrought in towns and cities located in the lowlands. Impassable roads and the high water have seriously interfered with railroad traffic and have prevented farmers from reaching town, besides delaying all kinds of spring farm operations. Reports from all sections of the district indicate that seeding of spring crops has made little progress, and irreparable damage has been done to winter wheat in the fertile bottom lands along the flooded streams. The movement of cereals and other farm pro ducts to market during March showed a heavy slump as compared with February and March, 1921. Receipts of corn at St. Louis, for example, were 4,113,000 bushels in February, and only 2,210,000 bushels in March. The decreased movement was due in part to lower prices, but impassable roads accounted for the main portion of the decrease. Prices of leading farm products in the St. Louis market, which declined sharply during the latter part of March, recovered much of the loss in early April. The July and September wheat options moved to new high prices on the crop, and there was an appreciable recovery in cash wheat. Corn and oats moved upward, and the month was marked by satisfactory prices for cattle, hogs and sheep. Replies to questionnaires addressed to leading manufacturers and merchants of the district indi cate in the main optimism relative to the business outlook. A rather universal comment is that condi tions are more stable, both in respect to stocks and prices, and the public is in need of commodities of all sorts. Stocks of merchandise in retailers hands continue abnormally low in many sections. Orders for goods, while smaller than usual in size, are being placed in large numbers, and bulk satisfac torily in the aggregate. Manufacturers are increas ing their purchases of raw material, and for the first time in a great while, are accumulating finished goods in anticipation of a demand later on. Plenti ful and easier money has a tendency to broaden manufacturing programs and buying of merchan dise for forward delivery. The first week of the coal strike, while marked by a radical reduction in output, was accompanied by no change in prices for either coal or coke in this district. In the second week of April there was a slight strengthening in bituminous coal, and an ad- vance in metallurgical coke, particularly the product of Eastern ovens. The demand for fuel generally, however, has thus far failed to show any abnormal stimulation. The reason for this is that the principal consumers had made preparation^ against the strike, and steam and domestic requirements are well protected for at least sixty days. Many mines in the district have loaded cars on track which have not yet been moved. Louisville, Memphis and other Southern cities report the demand for coal quiet. It is significant, however, that the usual seasonal decline in the price of coal at retail has not taken place. By-product coke makers in the district are holding large reserves of both metallurgical coke and domestic sizes. Reports relative to collections show, on the whole, rather satisfactory conditions. April is an important month in this regard with boot and shoe and wholesale drygoods establishments in this district, and both these interests report results equal to, or better than at the same period a year ago. Generally, payments on current business are excellent, but as has been the case for a year or more, old accounts are being paid less promptly, though old indebtedness has been largely reduced since January 1. Backwardness is reported in meeting bills m the flooded areas, but this is believed to be a temporary condition. Answers to 305 questionnaires addressed to representative interests in various lines^ throughout the Eighth Federal Reserve District asking^ for data relative to collections show the follow in g results: 3.2 per cent excellent, 19.4 per cent good, 61.3 per cent fair and 16.1 per cent poor. Throughout March business o f railroads operating in this district developed further im provement. Car loadings during the tw o last weeks of that month were the heaviest since October, 1921, and while the increase represented in large part shipments o f coal in anticipation of the strike, other classes of freight made an excellent showing. The decrease in the movement o f cereals was offset to some extent by heavier shipments of early fruits and vegetables to market, and the movement of live stock and miscellaneous merchandise held up well. Since April 1 there has been a perceptible slowing down, due to the coal strike and interference with traffic by high water. The St. Louis Terminal Railway Association which includes in its membership 26 roads operating through this gateway, interchanged 172,895 loads, which compares with 150,704 loads in February, 151,093 loads in January and 141,226 loads in December. For the first 9 days of April, 40,346 loads were interchanged, against 52,199 loads for the first 9 days of March and 49,199 loads for the corresponding period in February. Passenger traffic continues backward, the volume in March being about 25 per cent less than for the same month in 1921. All roads in this region are well covered on their immediate fuel requirements. Improvement in the automotive industry, noted jn ^ ie preceding issue of this report, continued -| through March and the early weeks of April, Reports of 235 dealers scattered throughout the district show more new vehicles sold than in any like period since the recession set in, in 1920. There has been a satisfactory reduction in the number of used cars on the market, especially in St. Louis, Louisville and Memphis. Producers of passenger cars jn district are operating at or near capacity, Sales of trucks and delivery wagons are from 36 to 70 per cent larger than for the corresponding period a year ago. A feature of the business has been the marked improvement of sales by country dealers, despite the excessive rains and flood conditions over a large part of the territory. An over supply of tires in dealers’ hands is having a depressin& effect on that department of the industry. Generally improvement m the accessory business has kePt Pace wlth the improvement in automobiles. T he per capita circulation of the United States on April 1, 1922 was $49.81, against $50.27 on March 1 and $57.51 on April 1, 1921. Commercial failures in the 12 Federal Reserve Districts during the months of March and February, with comparative figures for March, 1921, as compiled by D un’s were as follow s: ___________N U M B E R ____ Mar. Feb. District 1922 1922 Boston, First........................................... 217 206 New York, Second................................. 478 ...... Philadelphia, Third............................... 96 93 Cleveland, Fourth................................. 202 235 Richmond, Fifth..................................... 215 213 Atlanta, Sixth........................................... 221 270 Chicago, Seventh................................... 336 288 St. Louis, Eighth................................... 173 167 Minneapolis, Ninth............................... 103 97 Kansas City, Tenth.............................. 100 99 Dallas, Eleventh..................................... 107 207 San Francisco, Twelfth...................... 215 156 Total............................................... 2,463 2,331 M A N U F A C T U R IN G Boots and Shoes — A s was the case in February, reports o f the 11 reporting interests show wide variation in sales during March. In dollar value results were from 3 per cent less to 40 per cent larger than for the same month in 1921, with the average about 16 per cent larger, while the range ___________L IA B IL IT IE S ____________________ Mar. Mar. Feb. Mar. 1921 1922 1922 1921 88 $ 8,066,696 $ 6,235,271 $ 8,259,999 248 14,656,044 24,202,858 30,836,832 63 6,848,734 2,436,402 1,082,419 88 4,159,463 4,627,038 2,767,384 123 3,787,550 4,761,774 2,918,460 152 5,559,986 5,331,050 2,397,390 138 13,189,340 7,876,931 3,438,805 108 2,529,541 4,653,231 5,273,193 27 3,764,602 2,300,814 703,571 66 1,720,146 2,006,480 4,189,798 98 2,121,725 5,889,142 2,702,593 137 5,204,365 2,287,431 2,838,475 1,336 $71,608,192 $72,608,393 $67,408,909 AND W H O LESALE in volum e was from steady to 45 per cent larger, Orders arriving since April 1 are satisfactory, and include a larger portion for forward delivery. An enormous business in Easter goods and specialties was reported, though the demand still centers largely in low priced shoes. During the period under review factory operation in the district was from 80 to 100 per cent of capacity. Prices for fall lines of leading manufacturers represent a decline of from 4 to 5 per cent under levels prevailing up to April 1. Collections are very good. One leading interest reported on April 10 that his collections were 40 per cent larger than for the same date last year, while others showed improvement to the extent of from 14J4 to 30 per cent. An important St. Louis manufacturer who has compiled an index in which prices in 1913 and 1914 represent par, states that in 1920 his maximum reached 276, while on April 1 this year the index figure had fallen to 137. Clothing — A ccording to the 23 reporting inter ests, sales in March were from 6 to 32 per cent larg er than during the same month in 1921, and 2 to 20 per cent larger than in February this year. W ith but tw o exceptions the reporting interests indicate steady improvement in business, which they attri bute largely to exhausted stocks in retailers’ hands and inability of the public to further postpone buy ing. Recent reductions in prices have met good response. Fall lines are now being put out, and unusual efforts will be made to sell these goods. Prices of fall clothing are opening about 5 per cent under those of 1921. Buying continues chiefly on a necessity basis. Manufacturers continue to com plain of production costs, and many buyers are holding off pending further labor adjustments. It is estimated that it now costs from tw o to tw o and a half times as much to manufacture a suit of men’s clothing, retailing at from $18 to $35 as in 1914. Six wholesalers of men’s hats report gains of from 4 to 18 per cent over March, 1921, and from 5 to 32 per cent over February this year. W ith but three excep tions, millinery interests report decreases in sales in March under those of a year ago. Iron and Steel Products — Virtually all lines in this classification continue to reflect marked im provement. Buying of ferrous materials by the rail roads has been in larger volume, and the building industry is absorbing increased tonnages. There was a further sharp gain in the melt of pig iron in the dis trict during the period under review, estimated at about 1 7 ^ per cent as compared with the preceding month. Steel rolling mills, foundries and machine shops report the placement of more new business than has been the case in more than eighteen months.. Specialty makers have participated in the general improvement. Stove manufacturers, 7 inter ests reporting, showed sales in March from 15 to 102 per cent larger than in March, 1921, and from 2 to 93 per cent larger than in February. Five farm implement manufacturers and distributors report March sales from 17 to 78 per cent larger than a year ago, and from steady to 34j^ per cent larger than in February. Railway supply interests, 4 reporting, show gains of 12 to 22 per cent increase over March a year ago, and 13 to 33 per cent over February. Pig iron prices have advanced, Southern No. 2 foundry being quoted at $16 to $16.50, and the Northern product o f the same grade from $20 to $20.50 per ton. The demand for ferro-alloys, silvery iron and other specialties is better than in many months. All grades of iron and steel scrap have advanced to new high levels on the present upward movement. Hardware — Sales of the 12 reporting interests in March were from 10 per cent less to 20 per cent larger than for the same month in 1921 and 10 to 30 per cent larger than in February this year. The universal comment is that orders, while numerous, are in smaller volume than heretofore, and buying is largely for immediate requirements. There is an excellent movement of wire goods, which have ad vanced slightly in price, and other seasonal mater ials. Builders’ hardware continues active, but the reverse is the case relative to builders tools. Golf, baseball, and other seasonal sporting goods are being well taken, and sales of fishing tackle are unusually heavy.. There is some complaint relative to collections, especially in the South and in the flood areas. Flour — Production of 11 leading mills in the district during March was 329,428 barrels, against 250,472 barrels in February and 333,966 barrels in January. Business throughout March was described as dull, with a hand-to-mouth domestic trade, and little interest displayed by exporters. The first weeks of April developed a slight improvement in the demand, which, according to millers, reflected depleted stocks and a slightly better inquiry from Latin-American countries. Prices continue steady strong, mainly in sympathy with the scarcity of and very strong position of cash wheat. Choice milling grain is increasingly difficult to secure and stocks in elevators have been heavily drawn upon. Mill operation in the district during the period under review was at about half of capacity. Groceries — Sales of the 13 reporting interests showed little variation in March as contrasted with February, but increased from 4 to 16 per cent over those of the corresponding period a year ago. All interests report business in a more satsifactory condition, particularly in point of profits. Stabiliza tion of prices has progressed to the point where greater confidence is felt, and retailers are more disposed to purchase into the future. The m ove ment of canned goods during the past six weeks has been active, and wholesalers stocks are materi ally reduced. Sales of candy for the Easter trade were more than double those of a year ago. Collec tions are spotted, but are generally good on current business. Drugs and Chemicals — March sales of the 7 reporting interests were from 8 per cent less to 10 per cent greater than for the same month in 1921 and from 5 per cent less to 20 per cent larger than in February. There is a slightly better demand for chemicals used in manufacturing, and all the reporting interests comment on their heavier sales for forward delivery. More stock orders are materi alizing than in more than a year. Furniture — Sales of the 11 reporting interests were 1 to 12 per cent better than in February, and from 36 to 52 per cent larger than during the same period a year ago. The volume of orders for imme diate shipment is fairly large, but very little in the way of future buying has developed. The comment is made that intensive efforts are necessary to place goods. Furniture interests in St. Louis featured the week of April 8 as “ Better Furniture W eek ” and in Evansville a similar effort was undertaken under the title of “ Trade Period.” Results in both however, is running more largely to residential instances were reported as only fair, and consider forms than in many years, due to the housing short ably under expectations. Factory operations in the age. In these items prices have strengthened, and in district are at from 60 to 75 per cent of capacity. some of them have made clear gains. Southern pine No change in prices worthy of comment has taken finish and flooring, on the other hand, which go place during the past month or six weeks. into buildings in their completion stages, continue to sag. Railroads and car shops are gradually Lum ber — The spring demand for lumber has increasing their purchases of cross and switch ties developed strongly since the early part of March. and car building materials, but business in all this For that month complete, lumber receipts at St. line is still light. The hardwood trade has benefited Louis were 38*4 per cent and the shipments 19 per to quite an extent from the expanding activities of cent larger than for the same period in 1921. planing mills, sash and door factories and autom o March receipts showed a gain over those of March, bile plants, together with improved demand from 1920, of 13 per cent, and the shipments a loss of other sources. But while this improvement, coinci less than 3 per cent. The general volume of the dent with wet weather restrictions of production, movement was well maintained during early April. In the major building w oods, the buying is largely has apparently halted the declining tendency of the of common grades for framing and exterior work, market, no visible progress has been made toward such as dimension and boards, along with timbers price stabilization. Buyers still have the whip-hand where construction is for business uses. Building, throughout the list of hardwoods. Industrial Pow er Consumption — Public utility companies in the four leading cities of the district report consumption of electrical power by industrial consumers during March 11.4 per cent greater than in February, and .9 per cent better than during March, 1921. The comparative figures fo llo w : Representative Customers March, 1922 St. Louis.......... 63 5,647,665 k. w. h. 31 Memphis ....... 817,980 “ Little Rock.... 11 628,030 “ Louisville ..... 81 2,204,198 “ Total.... 186 9,297,873 Feb. 1922 5,054,754 k. w. h. 744,380 “ 520,003 “ 2,022,822 “ 8,341,959 Mar. 1922 comp, to Feb. 1922 + 11.7 + 9.1 +20.7 + 8.9 Mar. 1922 comp, to Mar. 1921 -1 4 1 + 3 4 .4 + 14.6 + 32.7 March, 1921 6,570,565 k. w. h. 608,620 “ 547,710 “ 1,660,468 “ + 1 1 .4 9,387,363 + .9 R E T A IL The lateness of Easter as compared with other underwear. Athletic goods are being stimulated years, continuous heavy rains, unseasonably cool by the arrival of the season for outdoor sports. weather, and the coal strike conspired to slow A feature of this business is the unprecedented de down retail business during March and early April. mand for baseball supplies. Factories making these Analysis of sales statistics in the several lines specialties have been operating at capacity, and are investigated develop only minor changes as com unable to fill their orders. Sales of tennis and golf pared with February totals, but in most instances goods are not up to those of recent seasons. Furni the volume fell behind that of March, 1921. Reports ture dealers report a fair demand for goods for the received since April, indicate a fair revivlal in household, especially cheap bedroom and dining activity, especially in lines which most directly room sets. Office furniture and supplies continue reflect Easter buying. Sales of jewelers in March quiet. W ith the exception o f garden tools, wire averaged close to 10 per cent under the same month goods and builders hardware, quietness is the rule last year and were steady with February. The in the hardware line. Printers and stationers report showing was helped by some sales of expensive insufficient business to keep their full forces em articles effected by several of the more important ployed, and the keen competition in recent weeks interests. Distribution of clothing was handicapped has resulted in price cutting which is unfavorably by the unseasonable weather, the demand for gar reflected in profits. Candy shops report heavy in ments for spring wear being unusually backward. creases in their Easter business over last year, some Clothing merchants say that the loss occasioned showing gains as high as 150 per cent. Receipts of by these conditions can not be made up, as the theaters and other places of amusement show a public will change from winter to summer apparel, heavy decrease under the corresponding period a and spring stocks will have to be carried over \ear ago. Chain store sales in the district continue or sold at a sacrifice. This is true particularly on a large scale, with gains over the preceding of felt hats, wom en's suits and medium-weight month and the corresponding period a year ago. Department Stores — The condition of retail trade during March, 1922, in the leading cities of this district is reflected in the follow ing statement, com piled from reports of 21 representative department stores: (Percentages) St. Net Sales: Louis Mar. 1922, compared with Mar. 1921................ -18.3 Period Jan. 1 to Mar. 31, 1922 compared with same period in 1921................................... -15.6 Stocks at end of March, 1922: Compared with same month in 1921................ - .9 Compared with stocks at end of Feb. 1922.... + 10.2 Average stocks on hand at end of each month since Jan. 1, 1922, to average monthly sales during same period................................................... 361.7 Outstanding orders for March, 1922, compared with previous year’s purchases............................. 5.7 Louis ville -15.2 Memphis -21.3 Little Rock -33.6 Evans ville -21.5 -11.1 -16.8 -26.1 -10.0 -17.0 - 3.6 - 4.3 + 7.6 + 6.6 + 20.9 + 7.5 -12.9 + 6.7 + 4.3 + 10.0 591.6 609.6 524.3 1021.7 561.8 452.4 2.7 7.0 5.4 2.5 4.8 5.5 Quincy -21.4 8th Dis trict -19.8 -16.1 + + 2.0 8.5 A G R IC U L T U R E Reports from “virtually all sections of the dis trict tell of serious delays to spring farm operations due to wet weather. Throughout March there were frequent rains, which during the early days of April gained in intensity, making roads impassable and putting fields in such condition that it was impossi ble to cultivate them. Except in the case of oats, however, it is not likely that any of the crops will be reduced on this account, as there remains ample time for seeding corn, legumes and vegetables. Furthermore, years of heavy rainfall in this region are almost invariably coeval with heavy agricultural production. Crop failures are generally caused by insufficient moisture, and are rarely the result of excessive precipitation. Except where irreparable damage has been done to winter wheat by floods, this crop is in excellent condition. Marked improvement has taken place since the extreme cold weather, and the plant has a fine stand and good root growth, with color perfect. Thousands o f acres in the bottom lands along the flooded streams, however, will be a total loss. Relatively little corn has been planted, and reports relative to prospective acreages vary con siderably. In Kentucky the outlook is for smaller plantings, while in Arkansas, Mississippi and Ten nessee slight increases are indicated. In Missouri, Illinois and other upper states of the district the area seeded will be about the same as last season. Pastures are in prime condition, and with but few exceptions, the condition of live stock is splen did. Planting of potatoes is backward, and the same is true of vegetables and garden truck generally. Prospects for fruit in this district are the best in a number of years. The strawberry crop in Arkansas gives every indication of being a record one. Apple and peach orchards have been subject to more care ful cultivation than in former years. The outlook for deciduous fruits is everywhere the best. Tobacco, both in the burley and dark districts, has practically all been delivered by the farmers. The Burley T obacco Growers’ Cooperative Market ing Association has not announced the prices it proposes naming on its redried burley. Its receipts are very light and it is generally supposed it has received about all the tobacco it will get in this season. In the dark fired district of Kentucky very little tobacco is being bought from the farmers direct as the crop has been picked over closely and the unsold portion is either held at prices above buyers’ views or the quality is of such nature as to be unattractive. Preparations are being made in all districts for a full sized crop of burley and dark tobacco. Cotton planting, which has been impeded by excessive moisture, is progressing slowly. Reports from Arkansas indicate acreage 16 per cent larger than last year. In that State plow ing is 54 per cent completed and 13 per cent of the crop planted. Increased fertilizer sales are reported in a few locali ties. Moisture conditions permitting, Missouri will have its usual cotton acreage. The U. S. Department of Agriculture, in its report as of April 1, 1922, gives the condition of winter wheat in States of the Eighth Federal Reserve District as follow s: Condition April 1 10 yr. Dec. 1 1922 1921 av. 1921 Arkansas .................86 91 ' 87 77 ................93 Illinois 96 81 93 Indiana ................ 90 89 80 92 Kentucky ..........:.....94 95 85 95 90 86 Mississippi ..............88 90 Missouri ................88 93 84 87 Tennessee ................95 94 84 93 Price April 1 1922 1921 122 141 120 140 125 142 135 166 175 203 117 141 135 181 s market between March 15 and April 15, with closing quotations on each o f these dates, and on April 15, 1921: May wheat...................... Per bu. < < July wheat.... ................... “ Sept. wheat...................... u May corn.......................... “ July corn.......................... < < Sept. corn.......................... k May oats............................ “ July oats............................ u No. 2 red winter wheat a No. 2 hard wheat.......... “ No. 2 corn........................ < < No. 2 white corn............ u No. 2 white oats............ Flour: Soft patent......... Per bbl. “ Flour: Spring patent Middling cotton............... Per lb. Hogs on hoof.................. Per cwt. Close Mar. 15, 1922 $1.28** 1.10# l.o sy4 .58 .6154 .62% .3 8 # .40# 1.38 $1.28 1.29 @ .5 6 # .5 6 # @ .57 .37# 6.50 7.50 @ 7.00 7.30 @ .1 7 # 8.00 @ 10.40 High Low $1.39# 1.27J* 1.18# .61 .6324 $1.25# 1.0924 1.0724 .55^4 .5 9 # .6 2 # .37 .39 1.32 1.26 .54 .56 .37 6.00 7.00 .17 7.25 .657/8 .39H Al3/4 1.47 1.48 .59# .60 .40 7.50 7.90 .1 7 # 10.90 Close April 15, Close April 1922 1921 $1.39# $1.21 1.27% 1.05 1.18# .595^ .54 .635/s .58 .657/s .61 .365/s .3824 .4 1 # .3624 1.44 @ 1.47 1.29 @ 1.31 1.43 @ 1.48 1.30 .59 @ .5 9 # .5 4 # .5 8 # .56 .3 9 # .39 @ .38 6.50 @ 7.00 6.00 @ 7.00 7.75 7.25 @ 7.50 7.00 @ .17 .1 1 # 8.25 @ 10.45 5.50 @ 9.10 L A B O R S IT U A T IO N The labor situation in this district is reflected in the follow ing table, compiled from reports received from 200 leading employers in 20 of the largest cities in the district: Men March 31, 1922...............................101,470 Feb. 28, 1922................................... 95,846 March 31, 1921...............................103,171 Women 20,215 21,540 17,375 W age Earners Total Normal *121,694 156.011 117,386 153,775 120,546 156.011 % of Normal “ 22.0 -23.6 -22.7 Pay Roll $6,892,802.20 6,845,740.89 7,631,335.52 From the above tabulation it will be noted that the number of employes of the reporting interests increased 1,148 or .9% (men decreased 1.6% while women increased 16.3%) between March 31, 1921 and March 31, 1922. On March 31, 1921, the number was 22.7% under normal and on February 28, 1922, the total was 23.6% under normal as compared with 22% on March 31, 1922. W ages figured on a semi-monthly basis, decreased 9.6% between March 31, 1921 and March 31, 1922. C O M M O D IT Y M O V E M E N T Receipts and shipments of important commodities at St. Louis during March, 1922 and 1921, and Feb ruary, 1922, as reported by the Merchants’ Exchange, were as fo llo w s : Mar. 1922 Flour, barrels............................ 412,770 Wheat ,bushels.......................... 2,451,443 Corn, bushels............................. 2,210,000 Oats, bushels............................ 1,886,000 Lead, pigs................................... 404,630 Zinc and Spelter, slabs.......... 252,340 Lumber, cars............................ 15,085 Meats, pounds.......................... 13,754,800 Fresh Beef, pounds................ 62,600 Lard, pounds............................ 2,709,500 Hides, pounds............................ 5,310,700 Receipts Feb. 1922 Mar. 1921 374,490 366,350 2,696,397 2,286,000 3,318,900 4,113,200 2,652,000 2,584,000 154,650 232,080 180,950 133,720 10,893 10,271 6.469.200 13,650,700 1.718.200 129,100 2,389,800 4,016,400 2,420,700 6,618,500 Mar. 1922 592,360 2,407,290 2,402,955 1,864,440 146,490 303,910 10,218 22,246,900 15,612,300 7,083,300 7,871,800 Shipments Feb. 1922 451,380 1,749,370 2,345,585 1,722,070 135,740 391,540 7,885 22,230,100 15,916,600 8,033,700 7,699,000 Mar. 1921 423,970 2.545,780 2,469,680 2,203,660 98,950 244,550 8,593 24,143,500 20,370,100 10,750,600 5,543,800 L IV E STO C K M O V E M E N T A s reported by the St. Louis National Stock Yards, receipts and shipments of live stock in March, 1922 and 1921, and February, 1922, were as follow s: Mar. 1922 Cattle and Calves.......................... 72,312 Hogs ................................................. 286,203 Sheep ............................................... 22,335 Horses and Mules........................ 9,567 Receipts Feb. 1922 Mar. 1921 66,490 63,497 289,520 266,649 21,308 23,423 7,892 8,222 Mar. 1922 41,931 196,039 6,574 10,918 Shipments Feb. 1922 Mar. 1921 33,583 36,552 174,419 216,463 8,087 8,436 11,674 9,671 B U IL D IN G Building permits issued in the five leading cities of the district, St. Louis, Louisville, Memphis, Little R ock and Evansville, during March showed a radical increase over the preceding month, also over the corresponding period in 1921. In addition to these statistics the rapid growth of building operations is indicated in special reports from all sections of the district. A s noted in the preceding issue of this report, a feature of the present activity is the large number of small homes being erected in the country and suburbs of the larger cities. In the cities, ground has been broken for a large number of apartment houses, and considerable work is being either done or planned by municipalities in the way of schools and other public buildings. Sales of material manufacturers, notably fire clay, glass, roofing, hardware and cement, during February and March reflect increased activity in the building industry. Road building during March and early April was interrupted temporarily by continuous wet weather. Further reductions in labor costs are reported, notable am ong which were the voluntary reductions by the St. Louis carpenters and sheet metal workers’ unions from $1.25 to $1.12^ and from $l'.25 to $1 per hour, respectively. Comparative figures for March in leading cities of the district fo llo w : St. Louis.. Little Rock.. Evansville .... New Construction Cost Permits 1922 1921 1921 1922 $ 739,865 $1,495,940 526 626 449,200 1,217,150 82 233 549,060 1,332,600 202 393 304,924 263,540 83 87 40,520 201,347 34 66 1,405 844 714 Mar. Feb. Jan. 1 927 545 424 $4,510,577 3,762,435 2,273,860 $2,083,569 1,298,016 1,174,416 Repairs, etc. Permits 1921 1922 553 502 270 143 32 61 184 156 96 82 915 632 478 1,164 653 504 Cost 1921 1922 $234,540 $303,065 93,550 86,750 82,380 12,840 59,351 69,032 18,884 30,343 $502,030 388,052 306,034 $488,705 328,833 338,168 P O S T A L R E C E IP T S Quarter ended March 31, 1922 St louis ............................... $2,471,204.81 Memphis ...................................... ........................................... 360,445.17 Little Rock........ ....................................... 172,713.80 Evansville Z Z Z ............................................................. ............ 119,883.63 Total...................................................................................... $3,024,247.41 Quarter ended Dec. 31, 1922 $2,634,058 14 398,109.94 175,264.13 118,331.55 Quarter ended March 31, 1921 $2,232,646.19 351.737.44 181.555.01 108,975.91 $3,325,763.76 $2,874,914.55 F IN A N C IA L liabilities combined decreased 4.9 per cent, standing The period under review was marked by a at 74.1 per cent on April 15. further easing in the credit situation in this district. Acceptances — The market for bankers’ accept Banks in the large cities are heavily supplied with ances during the past few weeks has been extremely funds, the amount of which was augmented by quiet and uneventful. The demand is almost nil, deposits resulting from large payments to whole due chiefly to the low interest rates, the minimum sale drygoods, boot and shoe and other mercantile quotation having fallen to 3% per cent. Offerings interests with which April is an important settle are light, and no bills to speak of have originated ment month. The volume of these collections was in this district. Acceptances purchased in the open large, leading houses reporting results to April 15 market by the Federal Reserve Bank of St. Louis from 15 to 40 per cent better than on the correspond in March amounted to $1,173,799, against $2,081,290 ing date a year ago. The demand for credits, especi in February. ally from commercial sources, is less active than Commercial Paper — Business of commercial heretofore, and the city banks are seeking invest ment for their surplus funds. The situation in the paper houses during the period under review was country shows little change, banks in the smaller the most satisfactory in point of volume experi enced in several months. T w o leading houses report towns being still well loaned up. There is still an excellent demand for financing live stock, and sales in March well in excess of combined totals requirements for spring farm operations are being of January and February. There is an excellent felt. Relatively little liquidation has taken place in demand from country banks, and financial institu the cotton areas, but the present crop will be planted tions were good buyers through March and the at smaller expense than has been the case in recent first week of April. The demand exceeds the supply, years, and loans in the South are not expanding to and desirable names are increasingly difficult to the extent usual at this season. Marketing of tobac secure. Rates range from Ay2 to 5 per cent, with co continues on a satisfactory basis, and a consid the minor figure of the spread the one generally erable volume of credits based on that staple has prevailing at this time. been liquidated. Effective April 6, this bank low Bonds — The market for investment bonds con ered its discount rate to Ay2 per cent on all classes tinues active and in an unusually satisfactory posi of loans and maturities. There has been a slight tion. The demand for all desirable issues, particu reduction in rates asked by the commercial banks. larly municipal obligations, continues strong and Statistics reflecting the activities of this bank prices scored a further excellent advance. Several during the past thirty days show only small varia large issues of industrial corporations recently tion. Between February 15 and March 15 net placed in this district were well taken. The recent deposits increased $3,130,000, and Federal Reserve advance in Liberty Bonds has had a stimulating notes in circulation decreased $4,050,000, while effect on the market for Government obligations. bills discounted for member banks increased This bank’s quota of the last issue of Treasury $1,690,170.59. Between the same dates total reserve Certificates, dated April 15 and bearing 3y2 per carried against Federal Reserve notes and deposit cent interest, was largely oversubscribed. Interest Rates — Between March 16 and April 15 the high, low and customary interest rates prevailing in St. Louis, Louisville, Memphis and Little Rock, as reported by banks in those cities were as fo llo w s : St. Louis H L C Customers' Prime Commercial Paper: 30 to 90 days......................................................................... ...6 4 to 6 months....................................................................... 6 Prime Commercial Paper purchased in open market: 30 to 90 days.......................... .............................................. ...Sji 4 to 6 months.......................................................................—5 y Loans to other banks.............................................................. 6V2 Bankers’ Acceptances of 60 to 90 days: Endorsed ............................................................................. 4 Unendorsed ......................................................................... 4 Loans secured by prime stock exchange collateral or other current collateral: Demand ............................................................................... ...7 3 months ..................................................................... 7 3 to 6 months............................................................. 7 Cattle Loans................................................................................. ...8 Commodity paper secured by warehouse receipts, etc ...6y2 Loans secured by Liberty Bonds and Certificates........ 6y2 Louisville L C H sy 2 6 5y2 6 H L C Little Rock H L C 8 8 6 6 8 7 8 8 ........ ........ j- 43/4 sy2 5 Sl A 6 6 4y2 5 4y4 4y2 5 6 5/2 43/4 5 5/4 4Va 5 6 5J 6 A 8“ 6 4 4 4 4 5 5 ... ..... ..... 5 5 5 6 5y2 5 sy . 6 6 6y> 6 sy2 6 6 6 5y. 6 5y2 6 5y 6 5 6 6™ 6 6 5^4 6 ... 8 8 8 6 6 6 8 " ’ 6" 7 6 7 6 6 ... 7 7-8 ....... ....... ' 6*" 7 ...... ...... ....... 6 6 6 6 6 8 8 8 8 8 8 7 7 7 7 7 7 7 7 7-8 8 8 7 Savings Deposits — The changes in the number of savings accounts and the amount of savings depos its, exclusive of postal savings deposits, since a month ago and a year ago, as reported by the largest mem ber banks in the leading cities of this district, are shown in the follow ing table: Number Banks Reporting St. Louis......... 12 Louisville . . 7 Memphis 7 Little Rock 5 Evansville . 4 Total .... 35 April 5, 1922 Number Amount Savings Savings Accounts Deposits 234,558 $ 63,462,000 133,167 20,431,000 56,889 13,209,000 24,092 6,183,000 21,023 8,190,000 469,729 $111,675,000 March 1, 1922 Amount Number Savings Savings Deposits Accounts $ 62,575,000 232,523 20,045,000 131,713 13,703,000 54,721 6,248,000 24,980 8,133,000 21,003 $110,704,000 464,940 April 1, 1921 Amount Number Savings Savings Deposits Accounts 220,687 $ 60,348,000 117,048 17,512,000 50,164 12,168,000 5,550,000 21,399 8,038,000 19,883 430,181 $103,616,000 Condition of Banks — The condition of banks in this district and changes since a month ago and last year, are reflected in the follow ing comparative statement, showing the principal resources and liabilities of member banks in St. Louis, Louisville, Memphis, Little Rock and Evansville: April 12, 1922 37 Total Investm Reserve balanc Cash in vault.. Government deposits.............................. .............. Bills discounted with Federal Reserve Bank.. $ 14,417,000 129,929,000 283,637,000 $427,983,000 $ 18,740,000 121,516,000 292,020,00 $432,276,000 25,134,000 2,724,000 5,692,000 4,395,000 . 74,322,000 $112,267,000 41,476,000 6,957,000 319,964,000 159,173,000 4,461,000 6,587,000 1,618,000 All other loans and discounts.. Total loans ond discounts........... Invstments: U. S. Bonds.................................... U. S. Victory Notes.................... U. S. Treasury Notes............... U. S. Certificates of Indebted March 15, 1922 $ 12,754,000 . 124,986,000 . 280,913,000 $418,653,000 Number banks reporting............................................ Loans and Discounts (excluding rediscounts): 24,667,000 4,469,000 6,075,000 6,486,000 70,881,000 $112,578,000 43,315,000 13,440,000 314,449,000 157,863,000 7,282,000 9,115,000 1,240,000 28,221,000 2,189,000 April 15, 1921 37 37 1,671,000 66,775,000 $ 98,856,000 40,838,000 8,428,000 315,677,000 143,450,000 8,080,000 35,364,000 16,079,000 Debits to Individual Accounts — The followi table gives the total debits charged by banks to checking accounts, savings accounts and trust accounts __ __________ , _____, __.J ________ ___ . ___ ___ ment and also certificates of deposit paid, in the leading cities of this district during the past month and corresponding period a year ago. Charges to the accounts of banks and bankers are not included. These figures are considered the most reliable index available for indicating actual spending by the public dur ing the periods which they c o v e r : April 1922 Debits for four weeks ending........... April 19, 1922 St. Louis................................................... $508,358,000 Louisville ................................................. 122,601,000 Memphis ................................................... 90,037,000 Little Rock............................................... 35,099,000 East St. Louis and Natl. Stock Yards 33,715,000 Evansville ............................................... 22,820,000 Springfield ............................................... 11,658,000 Quincy ..................................................... 9,038,000 Owensboro .............................................. 4,853,000 Greenville ............................................ — 3,532,000 Helena ............................................ ......... 3,360,000 comp, to Mar. 1922 + 3.8 - .5 .8 - 4.1 + 3.9 -11.3 + 3.8 + 7.2 -20.3 Mar. 15, 1922 $489,975,000 123,274,000 90,721,000 36,611,000 32,434,000 25,732,000 11,231,000 8,429,000 6,091,000 3,633,000 3,328,000 FED ERAL RESERVE - April 20. 1921 $520,052,000 116,674,000 75.023.000 37.671.000 32.897.000 19.337.000 11.652.000 10.910.000 April 1922 comp, to April 1921 - 2.2 + 5.1 + 20. - 6 4- 2 + 18 + -17 2.8 + 1.0 O P E R A T IO N S In March the Federal Reserve Bank of St. Louis discounted $41,018,799 of paper for 287 member banks, which is a decrease of $13,215,310 under the amount discounted in February and a decrease of 11 in the num ber of banks accommodated. Acceptances purchased in March amounted to $1,173,799, a decrease of $908,131 under the preceding month. On April 6 the discount rate of this bank was reduced from 5 to 4 y2 per cent Changes in the assets and liabilities of the Federal Reserve Bank of St Louis since a month ago and last year are shown in the following comparative statement (in thousands of dollars) : Comparative statement of resources and liabilities 1921-1922: R E SO U R C E S: L IA B IL IT IE S : April 19, 1922 Gold Reserves..................$ 93,447 Legal tender notes, silver etc........................ 18,433 Total Cash Reserves..$111,882 Discounts secured by U. S. Govt, obligations.......... 7,300 Discounts otherwise secured or unsecured.. 18,136 Bills bought in open market.................. 820 U. S. Govt, securities..... 24,940 Total earning assets.—$ 51,196 Uncollected items.......... 32,873 Other resources.............. 3,409 Total Resources.. ..$199,360 Mar. 22, 1922 $ 97,202 April 22, 1921 $ 90,414 16,463 April 19, 1922 Mar. 22, 1922 April 22, 1921 $ $ Capital paid in................. $ 4,633 11,158 Surplus ............................. 9,388 $113,665 $101,572 Reserve for U. S. Govt franchise tax............... 92 76 9,824 34,584 Deposits ......................... 73,138 69,505 65,879 21,107 45,903 F. R. notes in circulation ................... 76,963 80,962 112,183 1,248 20,014 784 14,849 F. R. Bank notes in circulation ................... 3,365 3,381 7,055 Deferred availability items ............................. 31,115 28,862 29,398 Other liabilities............... 666 644 1,980 Total liabilities.......... $199,360 Combined reserve ratio. . 74.5% $197,441 75.5% $229,284 57.0% $ 52,193 28,452 3,131 $ 96,120 29,855 1,737 $197,441 $229,284 (Compiled April 20, 1922) 4,623 9,388 4,443 8,346
@FedFRASER