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MONTHLY REVIEW O f Agricultural, Industrial, Trade and Financial Conditions in the Eighth Federal Reserve District Released for Publication O n and After the Morning of April 29, 1933 JO H N S. W O O D , Chairman and Federal Reserve Agent FEDERAL J. V IO N P A P IN , Statistician Secretary and Ass’t Federal Reserve Agent RESERVE HOUGH spottiness and irregularity have characterized industry and commerce in the Eighth District during the past thirty days, there are numerous evidences of improvement and progress following the disabilities imposed by the national banking holiday in early March. The most notable factor in the improvement has been the rapidity with which financial institutions were reopened and banking facilities restored. The imme diate effect of this was general restoration of confi dence and the release of a large volume of business which had been held up by suspension of banking operations. Seasonal expansion in demand for mer chandise in many important lines, while not as marked as in preceding years, has made itself felt, and generally merchants are more disposed to replenish inventories than has been the case in many months. In mercantile lines the full extent of the improvement is not adequately reflected in March statistics, much of the betterment having taken place in the final week of that month and dur ing the first half of April. This is true particularly of classifications of goods for ordinary consumption, such as apparel, dry goods, boots and shoes and food products. Of the wholesaling and jobbing lines investi gated by this bank, March sales were, in a majority of instances, larger than during February, though still measurably below the volume a year ago. A less favorable showing was made in retail distribu tion, due to a number of causes, among which were very unfavorable weather, effects of the banking disturbances and lateness of the Easter date. In the rural areas, lateness of the planting season and in many sections, serious flood conditions, tended to restrict the volume of trade. Generally through the district agriculture is from ten days to two weeks behind the seasonal schedule, heavy and continuous rains having delayed preparation of the soil and seeding of spring crops. Improvement in prices of cereals and some other farm products took place, with the movement to market in considerable volume. There was no betterment, however, in prices of livestock and packinghouse products. T C. M . STEW ART, BANK OF ST* LOUIS The general level of industrial production dur ing March declined slightly below that of February, but since April 1 the trend has been upward. A number of foundries, machine shops and other fer rous metal working plants which closed down during the banking holiday have resumed opera tions, and others are planning to go into production during the first half of May. In anticipation of price advances, purchasing of pig iron, iron and steel scrap and other raw materials during March and early April was in considerable volume, a number of important users having covered on their full second quarter requirements. Output of bituminous coal in fields of this district declined slightly in March as compared with February, and total pro duction was substantially less than in March, 1932. There was also a substantial curtailment of pro duction in the lead and zinc fields in March, both as contrasted with the preceding month and a year ago. Defections in the number of employed work ers, caused by reduced mining operations and clos ing of certain industrial plants, was in a measure counterbalanced by employment due directly or indirectly to resumption of brewing operations, with the result that the employment situation as a whole in the district showed no marked change as con trasted with the preceding thirty days. As reflected in sales of department stores in the principal cities of the district, retail trade in March was 13 per cent greater than in February, and 28 per cent less than in March, 1932; for the first quarter this year there was a decrease of 27 per cent as compared with the same period in 1932. Combined sales of all wholesaling and jobbing firms reporting to this bank were 21 per cent greater in March than February, but 13 per cent smaller than the March, 1932, total; cumulative sales for the first three months this year were 16 per cent less than for the first quarter of 1932. The dollar value of building contracts let for new construction in the five largest cities in March was about one-half greater than in February, but 69 per cent smaller than in March, 1932; for the first quarter this year the total was three-fourths smaller than for the comparable period a year ago. Construction con tracts let in the Eighth District in March were 89 per cent larger than in February and 19 per cent less than in March, 1932; for the first quarter this year there was a decrease of 27 per cent as compared with the same time in 1932. Following the sharp decrease in freight traffic handled by railroads operating in this district during the first half of March, there has been a well defined upward trend, but the volume continues below that of the corresponding period last year and in 1931. A decrease during March in loadings of livestock, larger than would be indicated by receipts at lead ing district markets, is attributed to the unusually large numbers of cattle and hogs transported by trucks. For the country as a whole, loadings of revenue freight for the first 13 weeks this year, or to April 1, totaled 6,204,267 cars, against 7,335,790 cars for the corresponding period in 1932, and 9,372,110 cars in 1931. The St. Louis Terminal Rail way Association, which handles interchanges for 28 connecting lines, interchanged 116,049 loads in March, against 112,484 loads in February and 149,953 loads in March, 1932. During the first nine days of April the interchange amounted to 36,358 loads, which compares with 34,183 loads during the corresponding period in March, and 39,569 loads during the first nine days of April, 1932. Passenger traffic of the reporting roads decreased 27 per cent in March as compared with the same month last year. Estimated tonnage of the Federal Barge Line between St. Louis and New Orleans in March was 77,400 tons, against 72,051 tons in February and 112,694 tons in March, 1932. Reports relative to collections during the past thirty days reflect the disturbing effects of the bank ing holiday. Returns during March were extremely irregular, due to hampered instrumentalities of ex change. It was not before the final week in March that it was possible to estimate what percentage of even routine and regular payments had been made. Since the first of April more normal conditions have been restored, and wholesalers in the large distribut ing centers report payments well up to expectations, general circumstances considered. This was true particularly of producers and distributors of boots and shoes and dry goods, with which April is an important settlement month. Retail collections are still backward, due partly to the tieing up of funds in banks which have not reopened. There has been a further increase in the ratio of cash transactions to total sales in a majority of retail lines. Liquida tion with merchants and banks in the tobacco areas has been in considerable volume since the end of February. Questionnaires addressed to representa tive interests in the several lines scattered through the district showed the following results: Excellent March, 1933 February 1933 March, 1932 ................0 % .0 1.6 Good 10.7% 7.4 14.8 Fair Poor 52.5% 52.9 59.4 36.8% 39.7 24.2 Commercial failures in the Eighth Federal Re serve District in March, according to Dun's num bered 111 involving liabilities of $2,696,132, against 103 defaults in February with liabilities of $2,708,637, and 172 insolvencies involving a total of $10,180,893 in March, 1932. Money in circulation as of March 29, was $6,353,000,000 which compares with an average daily circulation in February of $5,892,000,000 and of $5,530,000,000 in March, 1932. M AN U FA CTU R IN G A N D W H O L E S A L IN G Boots and Shoes — March sales of the report ing firms were 35 per cent greater than in February, and 9 per cent less than in March, 1932. Stocks on April 1 showed a decrease of 22 per cent both as compared with a month and a year earlier. The increase in the month-to-month sales comparison was seasonal in character, but less than a year ago, due to lateness of the Easter date and banking dis turbances. Since April 1 there has been a moderate recession in production, but general betterment in sales, as compared with the preceding month. Clothing — The usual seasonal influences, coupled with lateness of Easter, were reflected in a substantial increase in March sales of the reporting clothiers as compared with the preceding month. There was also a good increase as compared with the March, 1932 volume. Some cancellation of orders occurred incident to the banking holiday. In both men’s and women’s apparel interest still centers in the cheaper descriptions. Ordering for summer dis tribution is reported backward. Drugs and Chemicals — Sales of the reporting firms in March showed an increase of 10.5 per cent over the preceding month, but a decrease of 16 per cent under the March total last year. Inventories continue to shrink, stocks on April 1 being 5 per cent and 14 per cent smaller, respectively, than a month and a year earlier. The gain in the monthto-month comparison was seasonal in character, but somewhat larger than average, due to belated filling of requirements for fertilizer, insecticides and kindred lines. Dry Goods— Reversing the usual seasonal trend, sales of the reporting firms in March showed a slight decline under February and the total fell 23 per cent below that of March, 1932. Stocks on April I were 15 per cent smaller than on the same date last year, and 4 per cent less than on March 1 this year. Retailers are still purchasing chiefly on a necessity basis, and while their stocks are univer sally light, there is little disposition to replenish. A considerable volume of goods ordered for the Easter trade, notably ready-to-wear garments, were canceled. Prices showed no notable changes as contrasted with the preceding thirty days, but the trend of cotton fabrics was firmer. Electrical Supplies — Conforming to the usual seasonal trend, March sales of the reporting firms increased 17 per cent over the February total, and were 5 per cent smaller than a year ago. Stocks increased 18.5 per cent between March 1 and April 1, and on the latest date were 38 per cent smaller than a year earlier. In the month-to-month sales comparison part of the increase was accounted for by heavier sales of radio material. Flour — Production at the 12 leading mills of the district in March totaled 306,680 barrels, against 252,291 barrels in February and 232,282 barrels in March, 1932. Throughout March new business booked by mills was in small volume. All classes of buyers were dealing on a hand-to-mouth basis, and carload orders were almost entirely absent. Since April 1 there has been a fair recovery in demand, particularly from the large bakery trade. Following the upturn in cash wheat, prices of flour advanced in early April. Mill operations were at from 45 to 50 per cent of capacity. Furniture — March sales of the reporting firms were 18 per cent smaller than for the same month in 1932, and 7 per cent less than the February total this year. Stocks increased 13 per cent between March 1 and April 1, and on the latest date were II per cent smaller than a year ago. Some cancella tions of orders were reported as a result of the bank ing holiday. Moderate improvement in demand for radio cabinets is reported. Groceries — Somewhat more than the usual seasonal betterment took place in this classification from February to March, sales of the reporting interests during the latest month being 15 per cent greater than in February. The total, however, was 14 per cent smaller than in March, 1932. Inventories decreased further, stocks on April 1 being 7 per cent and 13 per cent smaller, respectively, than a month and a year earlier. Lateness of the season had been reflected in reduced purchasing in the rural areas. Hardware — Sales of the reporting firms in March increased 16 per cent over the February total, but were about one-fifth smaller than in March, 1932. Stocks on April 1 were larger by 2 per cent than a month earlier, and 4 per cent less than a year ago. Unfavorable weather has held down the move ment of seasonal goods, and generally merchandise for distribution in the rural areas continues to lag. Iron and Steel Products — Foundries, mills, machine shops and other ferrous metal working plants which closed during the banking holiday have been gradually resuming operations. During the first half of April activities in the iron and steel industry in this district have been at approximately the same rate as during February. There has been a moderately broadening tendency in consumption in certain quarters, and orders and specifications which were postponed during the holiday are arriv ing in considerable volume. Indications are that shipments of finished materials in April will reach the largest total for any month since last fall. Pur chasing of raw materials, notably pig iron and iron and steel scrap, has been on a noticeably larger scale than heretofore. A number of industries have entirely covered their iron and scrap requirements for the balance of the second quarter, and in some instances contracts have been placed for third quar ter delivery. The price of pig iron has advanced 50c to $1 per ton, and certain grades of scrap are $1 to $1.50 per ton above the low point touched in late January. Distributors of iron and steel goods from store report improvement in their business, with heavier buying from the general manufactur ing trade. Demand for building materials continues quiet. Purchasing by the railroads is still on a bare necessity basis, and the outlet through the automo tive industry has failed to broaden to the extent expected. Manufacturers of sheets, plates, strip and other rolled steel commodities report a fair pickup in orders and shipments since the last week in March. Expansion in brewery requirements and seasonal manufacturing of refrigerators and other household equipment has stimulated the movement of galvanized and other descriptions of sheets. Structural steel awards continue at a low level, and unfinished orders have decreased, with the result that fabricating plants were operating at only about 14 per cent of capacity. Steel mill operations since April 1 have been at approximately 15 per cent of capacity. A majority of stove foundries have re sumed activities on part-time schedules. Advance ordering of farm implements is in smaller volume than at this time in a number of years. Production of pig iron for the country as a whole in March, according to the magazine “ Steel,” totaled 542,013 tons, against 553,067 tons in February and 967,015 tons in March, 1932. Steel ingot production in the United States in March totaled 885,913 tons, which compares with 1,066,339 tons in February and 1,403,723 tons in March, 1932. A U T O M O B IL E S Combined passenger car, truck and taxicab pro duction in the United States in March totaled 118,592, against 106,825 in February and 118,959 in March, 1932. Distribution of automobiles in this district dur ing March showed a fair increase over the preceding month, but, according to the reporting dealers, the March total was smaller by nearly one-third than a year ago. The March volume, incidentally, was the largest for any month since last June. Business gen erally, but more particularly in the country, was hampered by unfavorable weather conditions, and this is true, also, of the first half of April. In the yearly sales comparison, decreases were distributed quite generally through all classes of makes, but were particularly noticeable in the medium-priced classification. A large part of the increase in the month-to-month comparison was accounted for by cars in the cheap price field. Dealers in Illinois re ported some stimulation in business from a desire on the part of purchasers to secure cars before the effective date of the state sales tax, April 1. Demand for trucks was more active, due in part to resump tion of brewing. Replacement parts and accessories continued quiet, with March sales below a month and a year earlier. Moderate improvement in de mand for tires was reported by several dealers. Sales of new passenger cars by the reporting dealers in March were 4.4 per cent larger than in February, and 31 per cent smaller than a year ago. Dealers are still purchasing conservatively and inventories continue light, stocks on April 1 being 6 per cent smaller than a month earlier, and about one-third less than a year ago. Sales of used cars in March were slightly larger than in February and 18 per cent less than in March, 1932. Stocks of salable secondhand cars on April 1 decreased 4 per cent and 28 per cent, respectively, as contrasted with a month and a year earlier. According to deal ers reporting on that item, deferred payment sales in March constituted 52 per cent of their total sales, against 46 per cent in February and 54 per cent in March, 1932. R E T A IL T R A D E The condition of retail trade is reflected in the following comparative statements showing activi ties in the leading cities of the district: Department Stores Net sales comparison Stocks on hand Mar. 1933 3 months ended Mar. 31, 1933 comp, to Mar. 31, 1933 to comp, to Mar. 1932 same period 1932 Mar. 31, 1932 Evansville ...— 34.0% — 30.1% — 25.9% Little Rock..— 42.8 — 30.4 — 24.4 Louisville ....— 30.8 — 28.9 — 30.1 .— 27.7 — 24.1 Memphis .... — 22.0 .— 23.4 — 27.7 — 22.1 ,— 26.9 — 27.5 — 22.1 Springfield ..— 32.7 — 29.5 — 26.7 8th District.,.— 28.4 — 27.4 — 23.4 Stock turnover Jan. 1, to Mar. 31, 1933 1932 .22 .25 .44 .51 .59 .58 .63 .70 .50 .56 .78 .87 .26 .29 769 .76 Retail Stores Net sales comparison Stocks on hand Mar. 1933 3 months ended Mar. 31, 1933 comp, to Mar. 31, 1933 to comp, to Mar. 1932 same period 1932 Mar. 31, 1932 Men’s Fur* nishings ...— 38.2% Boots and Shoes ....... — 34.3 Stock turnover Jan. 1, to Mar. 31. 1933 1932 — 31.4% — 22.7% .59 .65 — 26.5 — 26.2 .60 .62 PO STAL RECEIPTS Returns from the five largest cities of the dis trict show a decrease in combined postal receipts for the first three months this year of 3.8 per cent under the corresponding period in 1932 and of 19.6 per cent under the final quarter in 1932. Detailed figures follow: Mar. 31, 1933 Evansville ....$ 130,563' Little Rock... 162,088 Louisville ...... 547,544 Memphis ....... 463,886 St. Louis....... 2,302,362 ........$3,606,443 Total For Quarter Ended Dec. 31, Sept. 30, 1932 1932 $ 139,826 $ 136,083 179,505 179,359 644,721 570,929 543,380 465,178 2,818,143 2,400,267 Mar. 1933 Mar. 31, comp, to 1932 Mar. 1932 $ 131,608 — . 8% 168,130 — 3.6 562,491 — 2.7 418,576 + 10.8 2,466,366 — 6.6 $4,325,575 $3,747,171 $3,751,816 3.8 BU ILD IN G The dollar value of permits issued for new con struction in the five largest cities of the district in March was 48 per cent more than in February, and 69 per cent less than the March, 1932 total. Accord ing to statistics compiled by the F. W . Dodge Cor poration, construction contracts let in the Eighth Federal Reserve District in March amounted to $4,890,487 which compares with $2,590,446 in Febru ary and $6,055,684 in March, 1932. Production of Portland cement for the country as a whole in March totaled 3,684,000 barrels against 2,777,000 barrels (revised figure) in February, and 4,847,000 in March, 1932. Building figures for March follow: New Construction Permits *Cost 1933 1932 1933 1932 106 Evansville .. 120 $ 15 $ 22 7 10 Little Ro< k 2 2 22 44 Louisville .. 18 82 Memphis .. 101 136 55 99 97 201 St. Louis. .. 107 431 347 497 $ 197 $ 636 .. 228 407 133 Feb. 844 .. 246 348 115 Jan. 360 *In thousands of dollars (000 omitted). Repairs, etc. *Cost Permits 1933 1932 1933 1932 40 76 $ 11 $ 20 16 69 5 12 25 40 13 38 100 157 38 66 223 189 102 88 370 269 277 565 486 417 $ 169 129 152 $224 400 289 CONSUM PTION OF E LE C TR 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 12 per cent larger than in February and 6 per cent lessthan in March, 1932. Detailed figures follow: No. of Mar.Feb. Mar. 1933 Custom1933 1933 comp, to ers* K .W .H . * K .W .H . Feb. 1933 Evansville .... 40 1,449 1,313 + 1 0 .4 % Little Rock... 35 1,084 1,092 — .7 Louisville .... 85 5,334 5,626 — 5.2 Memphis ...... 31 1,102 1,343 — 17.9 14,223 11,326** + 2 5 ,6 St. Louis......198 Tojal........389 23.192 *In thousands (000 omitted). ** Revised figures. 20,700 + 1 2 .0 Mar. 1932 * K .W .H . 1,959** 1,132** 5,293** 1,441 14,835** Mar. 1933 comp, to Mar. 1932 — 26.0% — 4.2 + .8 — 23.5 — 4.1 24,660 — 6.0 A G R IC U LTU R E Unusually mixed weather conditions have pre vailed throughout the season in the Eighth District. The winter was decidedly milder than normal, though punctuated with extremely cold spells of relatively short duration. March was slightly warm er than average, with rainfall somewhat above nor mal for that month. During the first half of April, temperatures about conformed with the average, but precipitation was heavier than average. As a result of heavy rains in the late winter, flood conditions of considerable severity occurred in the valleys of the Ohio and Wabash rivers during February and March, and later the rise of the Mississippi River and its tributaries further south caused overflows and flood damage in Arkansas, Mississippi and Ten nessee. Thousands of acres of farm lands were cov ered with water and numerous families driven from their homes. At the middle of April the flood threat was still present. These conditions will be bettered or become more acute as influenced by the volume of rainfall during the next few weeks. Generally through the district the growing sea son is opening with the ground well stocked with moisture, but due to the frequent, and in many in stances heavy precipitation, preparation for and planting of spring grain crops, commercial vegeta bles and farm gardens is from ten days to two weeks behind the seasonal schedule. Farmers are taking advantage of all favorable weather for working their fields, and in some sections planting has made fair progress. Cotton planting is backward, and condi tions in the tobacco district during the early season were inauspicious for preparation of plant beds. The supply of farm labor is universally much in ex cess of demand, with the trend of farm wages still downward and at the lowest levels since 1902. Cash rents for farm land also continue downward, but in most states of the district fewer farms are being let for cash, both renters and owners favoring share cropping. Winter Wheat — According to the report of the U. S. Department of Agriculture as of April 1, esti mated production of wheat in states including the Eighth District is 69,291,000 bushels, which com pares with 65,244,000 bushels harvested in 1932, and the 5-year average (1926-1930) of 80,629,000 bush els. This showing is considerably more favorable than that made by the country as a whole, total pro duction for all states being forecast at 334,087,000 bushels, against 462,151,000 bushels in 1932 and a 5-year average of 589,436,000 bushels. This estimate does not take into account abandonment of acreage. Evidences of winter damage in this district are much less in evidence than in other sections of the wheat belt. While rather late planting and dry fall conditions caused the plant to enter the cold weath er with short top growth, favorable soil conditions later served in a measure to offset this handicap, and general improvement has been the rule since the last week in March. Stocks of wheat on farms in states of this district on April 1 were estimated at 13,267,000 bushels, against 22,894,000 bushels on the same date last year and 8,734,000 bushels on April 1, 1931. Influenced by unfavorable reports relative to the growing crop, wheat prices advanced sharply during late February and throughout March, and in the second week of April sold in the St. Louis market at the highest point since November, 1931. Corn — In all states of the Eighth District in tentions of farmers are to plant smaller acreages of corn this spring than were grown for harvest last year. In these states the intended acreage, accord ing to the U. S. Department of Agriculture, is 28.147.000 acres, against 29,907,000 acres harvested in 1932. Preparations for planting are generally backward. The Government’s annual survey of farm reserves estimates the amount of corn on farms in states including the Eighth District on April 1 at 431.209.000 bushels, the largest for this date on record, and comparing with 406,103,000 bushels a year earlier, and 182,015,000 bushels on April 1, 1931. Slow marketing, due to depressed economic conditions and low prices, is largely accountable for the liberal farm reserves of corn. Merchantable quality of the 1932 crop was generally high. Fruits and Vegetables — While considerable damage was done to the peach crop in this district by the heavy February freeze, amounting in some sections to virtual failure, the condition as a whole on April l,was higher than a year ago, and total yield is likely to turn out larger than was thought possi ble in early March. The crop, however, will be sub stantially below average. Prospects for other species of tree fruits vary according to locality, but are on the whole favorable. Plums, apples, cherries and pears showed no serious damage at the middle of April, and the outlook for cane fruits, except in limited areas, is more favorable than a year ago. The condition of early potatoes in Mississippi and Arkansas on April 1 was slightly higher than last year. Intentions to plant potatoes in this district, according to the survey of the U. S. Department of Agriculture, show no change from actual plantings last season. Early strawberries have turned out a large crop, and with heavier acreages and favorable growing conditions, the total output this year is expected to considerably exceed that of 1932. Live Stock — Despite the handicap of the bank ing holiday, the movement of livestock to markets in this district during March was larger than in February, and compared favorably with the total of March last year. Except in areas where excessive rains and floods have resulted in disease and actual losses among herds, the condition of livestock has maintained the high conditions which have obtained since last fall. Following an advance in the first week of March, hog prices receded, and at the mid dle of April had declined to the levels of MidFebruary. In its report on the early lamb situation as of April 1, the U. S. Department of Agriculture says that in the Corn Belt States moisture conditions are favorable for good pastures later, but warm weath er is needed. Some tendency toward early lambing is noted, and heavier marketings in May and June are indicated. In Missouri the early lamb crop is reported as smaller than last year but in good condi tion. Receipts and shipments at St. Louis as reported by the National Stock Yards, were as follows: Receipts Mar. Feb. Mar. 1933 1933 1932 Cattle and Calves...... 67,729 66,347 82,454 Hogs ............................. 224,256 196,933 219,319 5,090 5,703 Horses and Mules...... 5,031 Sheep ............................ 36,011 34,078 36,756 Shipments Mar. Feb. Mar. 1933 1933 1932 33,985 37,618 44,634 136,994 123,435 154,689 5,398 5,465 5,729 10,474 11,072 10,907 Cotton — Heavy and frequent precipitation, ac companied in certain sections by serious flood con ditions, has delayed preparations for planting the new crop, and it is quite definite that planting as a whole will be late. Some seeding has been done in the southmost counties of the district, but the amount at the middle of April was much smaller than the average in recent seasons. Advices from practically all the principal producing areas are to the effect that farmers are planning to produce this year’s crop with a minimum of cash outlay. Less fertilizer, hired help and new equipment will be employed than in past seasons. Demand for cot ton showed no marked change as contrasted with the preceding thirty days. The price trend, how ever, was upward. In the St. Louis market the middling grade ranged from 5.95c to 6.95c per pound between March 17 and April 20, closing at 6.95c on the latter date, which compares with 6.20c on March 17, and 5.75c on April 15, 1932. Receipts at Arkansas compresses from August 1, 1932, to April 14, 1933, totaled 1,203,745 bales, which com pares with 1,483,702 bales during the comparable period a year earlier. Stocks on April 14 totaled 426,278 bales, against 501,140 bales on March 10, and 501,383 bales on the corresponding date a year ago. Tobacco — According to the U. S. Department of Agriculture’s survey, intentions of farmers in States of the Eighth District are to plant 675,000 acres of tobacco this year, as against 588,700 acres grown for harvest in 1932. Indications are for heaviest increases in planting of burley tobacco, and there will be some increase in the one-sucker crop. No material increase is likely in the air-cured Green River and dark fired districts. Tobacco beds were sown in due time, but low temperatures and continuous rains have retarded germination. Plants are small, and slow in coming up, with indications that they will reach the setting stage about ten days late. Barring unusually unfavorable conditions, however, there will be ample plants for all require ments. Practically all loose leaf tobacco markets have been closed for the season, except those in the dark fired districts, where sales in late March were heavy, with prices for a number of grades higher. In the preceding issue of this review, average prices in the Henderson, Ky., market were given as $5.35 per cwt., whereas the correct figure should have been $3.11. C O M M O D ITY PRICES Range of prices in the St. Louis market between March 16, 1933 and April 15, 1933, with closing quotations on the latter date, and on April 15, 1932, follow: Close April 15, 1932 High Low April 15, 1933 $ .5 9 ^ ..perbu..$ .6254$ .5034 $ .6254 ** .61 July ................... .50 *4 .6351 .6354 .64 ** Sept..................... .64 .6354 .5554 $ .60 @ .6054 No. 2 red winter “ .67 .54(54 $ .66 @ .67 it .60 @ .61 .64 @ .,65 .65 .54 54 No. 2 hard “ Corn .32 .26*4 .3354 .3454 .26 .3454 @ .35 .3354® .3454 No. 2 mixed .... .34 54 (€ .34 @ .35 .37 @ .38 .28 54 No. 2 white ..... .38 Oats it .24 @ .2454 .22 @ .22 H .22% .1854 No. 2 white ..... Flour 3.75 @ 4.20 3.00 3.75 @ 3.90 Soft patent...... ..per bbl. 3.90 4.20 @ 4.50 1.90 2.25 @ 4.50 Spring “ 4.80 .0575 * .0645 Middling Cotton. .0645 .0595 @ 3.75 3.00 @ 4.25 2.75 2.75 Hogs on hoof...... .per cwt. 4.20 * Close, as of April 13, 1933. Wheat F IN A N C IA L Eighth District banking and financial condi tions underwent further improvement during the past thirty days. The betterment was reflected in an increase in deposits of commercial banks, a re duction in borrowings of member banks from the reserve bank, discontinuance of heavy withdrawals of currency and a return flow of money to financial institutions. Easing of the credit strain was mani fest in lower interest rates at the commercial banks for practically all classes of accommodations. Liqui dation of current indebtedness at both city and country banks was in considerable volume. In the large distributing centers, April 1 settlements ex ceeded expectations, and permitted mercantile and industrial interests to substantially reduce their commitments at the banks. The general demand for credit, while much below the usual seasonal volume, has shown moderately expanding tenden cies since the first week in April. Due to lateness of the planting season, requirements for agricul tural purposes are less in evidence than is ordinarily the case at this time of year. The restoration of banking facilities, following the national banking holiday, is reflected in the sta tistics of reopened banks. As of April 19, there were 1,591 member and nonmember banks in this district licensed to do business, out of a total of 1,875 in operation prior to the holiday. Of the reopened banks, 324 were member banks and 1,267 nonmem ber banks. All of these banks, except 163, were operating without restrictions other than those im posed on all banks by Executive Order of March 10, 1933. Average borrowings of all member banks from the Federal reserve bank between March 19 and April 19 were in considerably smaller volume than in the similar period immediately preceding, also than the same time a year ago. The sharply de creased demand for currency was reflected in the circulation of this bank which decreased from 166 million dollars on March 19 to 150 million dollars on April 19. The total amount of Federal reserve credit outstanding on April 19 was 12.4 per cent smaller than a month earlier, and 66.5 per cent greater than on the corresponding date last year. The decrease in the month-to-month comparison is accounted for by the smaller volume of bills dis counted and purchased, while the increase in the yearly comparison is due to heavier holdings of United States securities. At the St. Louis banks current interest rates as of the week ended April 15 were as follows : Cus tomers’ commercial paper, \y2 to 5^4 Per cent; col lateral loans, 4j4 to 6 per cent; interbank loans, 4 y2 to 534 per cent; loans secured by warehouse receipts, Ay2 to 5^4 per cent and cattle loans, 5 to 6 per cent. Condition of Banks — Loans and discounts of the reporting member banks on April 12, 1933 show an increase of 0.08 per cent as contrasted with March 15, 1933. Deposits increased 0.2 per cent between March 15, 1933 and April 12, 1933 and on the latter date were 12.0 per cent smaller than on April 13, 1932. Composite statement follows: *Apr. 12, 1933 Number of banks reporting............ 24 Loans and discounts (incl. rediscounts) Secured by U« S. Govt, obligations and other stocks and bonds......$102,482 All other loans and discounts.... 155,467 *Mar. 15, 1933 24 $105,877 151,876 $141,318 213,617 Total loans and discounts.............. $257,949 Investments U. S. Government securities...... 120,613 Other securities............................... . 113,920 $257,753 $354,935 116,552 117,117 89,073 119,638 Total investments................................ $234,533 Reserve balance with F. R. Bank 46,039 Cash in vault........................................ 7,568 Deposits Net demand deposits..................... 278,345 Time deposits.................................. 174,385 Government deposits..................... 4,301 $233,669 49,933 15,590 $208,711 37,793 6,548 279,649 172,138 4,309 303,922 *Apr. 13, 1932 24 210,102 5,344 Total deposits.......................................$457,031 $456,096 $519,368 Bills payable and rediscounts with 442 6,564 2,576 Federal Reserve Bank................. *In thousands (000 omitted) These 24 banks are located in St. Louis, Louisville, Memphis, Little Rock, and Evansville, and their total resources comprise approximately 52.6 per cent of all member banks in this district. Debits to Individual Accounts — The following table gives the total debits charged by banks to checking accounts, savings accounts, certificates of deposit accounts and trust accounts of individuals, firms, corporations and U. S. Government in leading cities of the district. Charges to accounts of banks are not included Week ended : *Apr. 12, 1933 East St. Louis & Natl. Stock Yards, I11..$K3J5*El Dorado, Ark... 596 Evansville, Ind.... . 2,876 Fort Smith, Ark... . 1,558 Greenville. Miss... 477 Helena, Ark.......... 244 Little Rock, Ark.., 2,634 Louisville, K y.... , 20,752 Memphis, Tenn.... . 13,368 Owensboro, Ky.... 508 St. Louis, M o....... . 75,500 Sedalia, M o........... 293 Springfield, Mo.... . 1,922 **Texarkana, Ark.-Tex....... 924 , W eek inded *Apr. 5, / 1933 Week ended *Apr. 13, 1932 $ $ 3,495 754 3,153 643 672 213 2,909 24,078 15,447 658 87,700 315 2,304 900 Apr. 12, 1933 comp, to Apr. 5, Apr. 13, 1933 1932 4,961 749 4,339 1,767 655 247 5,473 23,745 17,434 652 104,600 334 2,271 + 1.6% — 21.0 — 8.8 + 142.3 — 29.0 + 14.6 — 9.5 — 13.8 — 13.5 — 22.8 — 13.9 — 7.0 — 16.6 1,470 + 2.7 — 28.4% — 20.4 — 33.7 — 11.8 — 27.2 — 1.2 — 51.9 — 12.6 — 23.3 — 22.1 — 27.8 — 12.3 — 15.4 — 37.1 .$125,203 $168,697 — 12.6 — 25.8 $143,241 *In thousands (000 omitted.) **Includes one bank in Texarkana, Texas not in Eighth District. Federal Reserve Operations — During March the Federal Reserve Bank of St. Louis discounted for 164 member banks against 150 in February and 245 in March, 1932. The discount rate of this bank remained unchanged at 3 y2 per cent for advances under provisions of Sections 13 and 13(a) of the Act. Changes in the principal assets and liabilities appear in the following table: *Apr. 14, 1933 $ 4,246 .. 10,378 .. 65,832 Federal Inter. Cr. Bk. Debentures.... Participation in Inv. Foreign Banks.. *Mar. 14, 1933 $ 13,916 16,692 65,832 *Apr. 14, 1932 $ 16,727 1,134 30,974 210 ......... 812 1,011 ..$ 80,666 Total Bills and Securities.....................$ $ 97,252 $ 49,846 ..$149,117 .. 150,494 .. 75,648 $158,472 175,320 77,027 $112,226 90,645 64,367 62.8% 72.4% Ratio of reserve to deposits and F. R. Note Liabilities................... .. Memorandum— Rediscounts for Other F. R. Banks............................................... *In thousands (000 omitted). (Compiled April 22, 1933) 65.9% .... 5,500 BUSINESS CONDITIONS IN T H E UNITEE? STATES Production and distribution of commodities which declined during the latter part of February and the early part of March, increased after the middle of the month. The return flow of cur rency to the reserve banks, which began with the reopening of banks on March 13, continued in April. Following the announce ment by the President on April 19, that the issuance of licenses for the export of gold would be suspended, the value of foreign currencies in terms of the dollar advanced considerably and there was increased activity in the commodity and security markets. PRODUCTION AND EM PLO YM ENT — Production at factories and mines decreased from February to March, contrary to seasonal tendency, and the Board’s seasonally adjusted index ments of coal. Shipments of miscellaneous freight and merchan dise which usually increase at this season, declined in the early part of March and increased after the middle of the month. D e partment store sales, which had declined sharply in the latter part of February and in the first half of March, increased rapidly after the reopening of banks. W H O L E S A L E PRICES — Wholesale prices of leading com modities, fluctuated widely during March and the first three weeks of April. In this period grain prices increased sharply and prices of cotton, hides, nonferrous metals, pig iron, scrap steel, and several imported raw materials advanced considerably. During the same period there were reductions in the prices of rayon, petroleum, and certain finished steel products. BANK CREDIT — Currency returned rapidly to the reserve banks and the Treasury following the reopening of the banks and on April 19, the volume of money in circulation was $1,500,000,000 less than on March 13, when the peak of demand was reached. Funds arising from the return flow o f currency were used to reduce the reserve banks’ holdings of discounted bills by $1,035, 000,000 and their holdings of acceptances by $200,000,000 at the same time member bank reserve balances increased by $390,000,000. As a result o f the decline in Federal reserve note circulation RESERVE BANK CREDIT AND FACTORS IN CHANGES MILLIONS Or DOLLARS MILLIONS Of DOLLARS aooo 6000 1000 6000 I 7000 IV 6000 / M<sney in Circulation declined from 64 per cent of the 1923-1925 average to 60 per cent compared with a low level of 58 per cent in July, 1932. At steel mills there was a decline in activity from an average of 20 per cent of capacity in February to 15 per cent in March, followed by an increase to more than 20 per cent for the month of April, according to trade reports. In the automobile industry where there was also a sharp contraction in output when the banks were closed, there was a rapid increase after the reopening o f banks. From February to March, production in the food and cotton textile industries showed little change in volume. Activity in the woolen industry declined sharply, and there was a reduc tion in daily average output at shoe factories. At lumber mills activity increased from the low rate o f February, while output of bituminous coal declined by a substantial amount. MILLIONS OF DOLLARS 40001 4000 C REDIT 3500 3500 3000 3000 2500 2500 4000 4000 5000 /yi Total p JV(I J , > v / 1929 J /n yn ■ 1000 500 3000 Gcild Stock "V - 4000 4000 3000 3000 3000 3000 Member Bank Reserve Balances 2000 2000 1000 1000 4000 4000 I 3000 Reseirve Bank Cre< 2000 ZP 1000 2000 0 3000 MILLIONS OF DOLLARS RESEFT/E BANK 1500 ^ J 5000 t t 4 t 2000 500 Jh-DisccxjnW \ 1931 1932 —- 0 1933 Wednesday figures for 12 Federal reserve banks. Latest figures are for 19 days in April. The volume of factory employment and payrolls showed a considerable decline from the middle of February to the middle of March. Comprehensive figures on developments since the reopening of banks are not yet available. Value of construction contracts awarded in the first quarter, as reported by the F. W . Dodge Corporation, was smaller than in the last quarter of 1932 by about one-third. DISTRIBU TIO N —- Volume of freight carloadings, on a daily average basis, declined from February to March by about 7 per cent, reflecting in large part a substantial reduction in ship b 2000 1000 0 0 1929 1930 Wednesday Figures. 1000 U.S. Govt^Securiti£-~*J| 1930 - 1931 1932 1933 1500 ..... .. v.^ccejjtanoes vs r 3000 Latest figures are for 19 days in April. and an increase in Federal reserve bank reserves, chiefly through the redeposit of gold and gold certificates, the reserve ratio of the twelve Federal reserve banks combined advanced from 46.5 per cent on March 13 to 61.5 per cent on April 19. Deposits of reporting member banks in New Y ork increased rapidly after the reopening of the banks, and on April 19 net demand deposits were $620,000,000 larger than on March 15. Reflecting in part an in crease of $380,000,000 in bankers’ balances, as funds were rede posited by interior banks. Money rates in the open market, after a temporary advance in the early part of March, declined rapidly, but were still somewhat higher than early in February. By April 21 rates on prime commercial paper had declined from 4 Yt. per cent to a range of 2—2 ^ per cent rates on 90 day bankers’ accept ances from 3 § i per cent to % of one per cent, and rates on renew als of call loans on the stock exchange from 5 per cent to one per cent. On April 7 the discount rate of the Federal Reserve Bank of New York was reduced from 3Yi to 3 per cent. The bank’s buying rate on 90 day bankers acceptances was reduced from Zy2 per cent on March 13 to 2 per cent on March 22.
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