The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
DITIONS Monthly Review of Agi ry, Trade and Finance Released for Publication FEDERAL RESERVE apers of April 3,1944 BANK OF ST. LOUIS C O U R T E S Y T R A N S C O N T IN E N T A L ft W E S T E R N A IR . IN C . G E N E R A L IN D U S T R IA L S I T U A T IO N E A D JU S T M E N T S in production schedules of some district Avar industries continued dur ing February as a result of national replan ning of war output. The shifts resulted in some decline in over-all industrial production, which is now somewhat under peak output reached last fall. The general level of activity, however, continues higher than a year ago. The trend in industrial output in this area seems likely to decline slightly during the balance of the war period. Manufacturing activity at St. Louis, Evansville, and some smaller district cities recently has shown declining tendencies. In these cities war contracts have been cut back and not fully replaced by new wrar work. These trends do not indicate that war production in the United States is diminishing, but rather that the district’s share in the national war output is smaller than earlier because much of the war production in this area consists of those military products which are now in adequate or nearadequate supply. There have been some indications recently that smaller manufacturing establishments in various cities of the district may be permitted materials to produce civilian durable goods but such output, if allowed at all, promises to be small. Consumption of electricity by selected industrial users at district cities declined 1 per cent in Feb ruary, but was 6 per cent above February, 1943. Most of the decrease from a month ago occurred at St. Louis and Evansville. Steel operations dropped slightly in February from a month earlier, but out put was about equal to that in the same month last year. Lumber production last month held steady with an increase in southern pine output offsetting a decline in production of hardwoods. Cutting of both softwoods and hardwoods is well below last year’s level due to continued shortages in man power, trucks, tires, and other equipment. Primary distribution of materials increased in February from both a month and a year ago, the increase from last year being due to heavier loading of cars. Car loadings of principal railroads operat ing in the Eighth District were 3 per cent greater than January, but were about the same as February, 1943. Load interchanges at St. Louis in the past month were down 1 per cent from the previous month, but were up fractionally compared with Feb ruary, 1943. A t Louisville, load interchanges in February were up 11 per cent compared with both a month and a year earlier. Some relief was recently afforded the strained transportation system by the opening up of river traffic on the Mississippi. Barge lines have materially increased their fleets by new cargo boats which are being built through coopera tion with the Defense Plant Corporation. The Alien Property Custodian patent library containing files on 40,000 patents formerly owned by enemy and occupied countries and now available under license to American com panies will be in St. Louis at the Mark Twain Hotel from April 25 to 28. The patents are classified so that visitors will be able to review only those patents in their lines of interest. A technical staff will be on hand to assist manu facturers in consulting the files. Further in formation on the patent library may be obtained from regional offices of the Smaller W ar Plants Corporation which is the joint sponsor. D IS T R IC T S U R V E Y M A N U F A C T U R IN G Iron and Steel — Due to furnace shutdowns in the St. Louis area in early February, district steel mills operated at about 81 per cent of capacity compared with 83 per cent in January, and slightly over 100 per cent in February, 1943. The decline in rate from a year ago was due primarily to an increase in rated capacity, while actual number of furnaces operated was no greater than last year. Actual tonnage out put in February was about the same as in February,* 1943. In early March, however, steel ingot opera tions dropped to 72 per cent of capacity which brought production down to a level significantly under volume a year ago. Decreased ingot output Page Z at district steel mills does not reflect any appreciable over-all letup in demand for steel, but is due pri marily to closing of certain relatively high-cost fur naces. Bad weather during February retarded the move ment of scrap, but most grades are in adequate supply and no shutdowns are anticipated because of scrap shortages. Pig iron supply is now rela tively easy as compared with one or two years ago. Shoes — A ccording to final reports, Eighth Dis trict shoe production in January amounted to 6,704,071 pairs compared with 6,888,377 in December, and 6,806,872 in January, 1943. Preliminary figures in dicate that district shoe output in February, 1944, increased 3 per cent from January levels, but was down slightly from a year ago. Production of civilian shoes continues to be ap preciably smaller than last year with no immediate prospects for increases because of shortages of leather and tanning- materials. Although an increase in cattle slaughter during recent months has tended to augment the supply of hides, the new military combat boot now in production requires consider ably more leather than earlier models. Output of non-leather footwear, however, is expected to show further increases this year. Whiskey — A t the end of February, 52 of Ken tucky’s 60 distilleries wrere in operation compared with 45 the previous month, and 57 on February 28, 1943. Current demand for industrial alcohol con tinues at a very high level, and there seems little prospect of resumption of whiskey production this year. Industrial alcohol requirements in 1944 for manufacture of synthetic rubber, smokeless powder, and other essential military products will amount to 632 million barrels, or almost three times 1942 con sumption. In an effort to relieve pressure against grain supplies, particularly wheat, the Government is completing arrangements to use about 18 million bushels of surplus lowrer-grade white potatoes for conversion into industrial alcohol. Miscellaneous Manufacturing— Output of ammu nition and explosives in the district during recent months has dropped sharply as a result of cutbacks in schedules. Production of chemicals other than explosives is still increasing in response to war and essential civilian demand. T ool and die manufac ture in the important St. Louis center is down slightly reflecting shortages of skilled workers. Slaughter of federally inspected meat in the St. Louis area last month, although down 13 per cent from January, was 54 per cent greater than in February, 1943. O I L A N D M IN IN G Oil— Preliminary figures indicate that the number of oil well completions in all fields in February was less than in January, but the percentage of oil-pro ducing wells drilled to total completions was some what greater. A ctivity as measured by total wells drilled was above the level of February, 1943. Cum ulative total wells completed this year in established fields in Eighth District States through March 4 amounted to 470 compared with 443 in the like period of 1943. There were 75 exploratory or wild cat wells, of which 71 were dry, drilled in the first two months of 1944. In February wildcat com ple tions totaled 37 as compared with 38 in January. Daily production of crude oil in Eighth District states during February averaged about 7 per cent less than P A W certified rates. Certified production rates for March are slightly less than last month with an increase in Illinois more than offset by de creases in Indiana and Kentucky. In an effort to stimulate oil production, the Government recently relaxed a regulation which permitted only two sand wells or one limestone well to each 40 acres. Under the present revision four sand wells or two lime stone wells may be drilled on each 40 acres. Mining — Despite labor shortages and unfavor able wreather conditions, output of manganese at mines in the Batesville-Cushman field, Arkansas, is continuing at high levels. February production amounted to about 1,410 tons compared with 1,555 tons of ore mined in January, when weather condi tions were more favorable. Coal production during February wras 7 per cent less than a month earlier, but about the same as in February, 1943. The de cline from a month ago resulted largely from de creased output in Illinois, due to unfavorable mining conditions. In order to augment coal stocks in the United States, which are at extremely low levels, W M C is now carrying on an intensive recruiting campaign for mine labor through the U. S. Em ploy ment Service offices. EM PLOYM ENT Over-all industrial employment in the Eighth District continues at a high level, although there has been considerable shifting within manufactur ing groups. Recent cutbacks in production of am munition and explosives, particularly in St. Louis, have intensified these shifts. Most workers released from cutback war plants have been absorbed by still expanding war industry and essential civilian fac tories which have in general been undermanned. Trade and service establishments can also absorb considerable numbers of workers. St. Louis is now classified as a labor surplus area, although there are some shortages in certain types of labor such as skilled steel workers and toolmakers. A t Evans ville, shifts in production considerably eased the labor stringency which had persisted during the past several months, and that city is now classified by W M C as an area of adequate labor supply, except for highly skilled workers. Louisville and Pine Bluff remain potential shortage areas, while Quincy and some other smaller cities also have rela tively tight labor situations. M ost rated district cities, however, are now considered surplus areas. A G R IC U L T U R E General Conditions — Seasonal work in agricul ture so far this year is further advanced than in the Page 3 comparable period of 1943. Favorable weather in January permitted completion of many routine tasks, and freed farm labor for soil preparation and spring planting in February and early March. Snow and rain in that period, however, retarded farm activity in many district areas. Planting of vege tables in Mississippi and Arkansas was somewhat delayed. W inter wheat, however, greatly benefited from the moisture and a large part of the damage from fall and winter drouth has now been offset. In southern Illinois sowing of spring oats has begun. Although heavy rains occurred in most sections of the district, no serious floods were reported. The lower W hite and W abash river valleys were flooded moderately but damage was slight. Agricultural employment in the United States on February 1, 1944, according to the U. S. Department of Agriculture, was 8,383,000 compared with 8,202,000 a month earlier, and 8,369,000 on February 1, 1943. The increase from a year earlier resulted from additions of family workers, as the number of hired workers has declined. Although the over-all supply of farm laborers in the district is apparently ade quate to meet most needs this year, there probably will be localized difficulties which may hamper some farm activities. The Government has extended its recruiting program for farm labor which should produce additions to the agricultural labor force. Also, recent cutbacks in production of certain mili tary items may release experienced farm laborers. It is estimated that, in orcier to achieve this year’s national production goals, about 287,000 more farm laborers wTill be required in 1944 than in 1943. Prices received by Eighth District farmers were generally lower in mid-February compared with a month earlier. Increases in prices of most grains, sweet potatoes, and meat animals were largely off set by declines in prices of eggs, milk, and tobacco. Changes in prices received by farmers ranged from a decline of 9 per cent in Tennessee to an increase of 1 per cent in Arkansas. Cotton — Cotton spindles in the United States in January were operated at 124 per cent of capacity, up 9 points from December operations, but down 16 points from January, 1943. Mill consumption of cotton this marketing season through January, 1944, is 10 per cent below last season, but in the past several weeks there has been some indication of increased activity. The labor supply at mills has recently shown some tendency to ease, and reports indicate that difficulties in maintaining an adequate force of experienced textile workers are likely to be less acute in the future. Upward revisions in man ufacturers’ ceilings on sheets and certain other cot Page 4 ton textiles widened mill margins on these items and should stimulate output. As a result of de creased mill activity and heavy military purchases, cotton textile supplies are at a relatively low level. Recent Lend-Lease orders for over 91 million square yards of cotton fabrics will further reduce the supply of textiles, and quantities available for the civilian market this year will be considerably less than in 1943. Activity on the Memphis spot cotton market in creased during the past month, but prices show no appreciable change from a year ago. In m id-Feb ruary the price of 15/16 middling cotton was 20.50c per pound compared with 19.75c on January 15 and 20.45c on February 15, 1943. The rate at which cotton is being pledged on CCC loans continues to decline, and repayments to increase, due to higher cotton prices. Fruits and Vegetables— A ccording to preliminary acreage estimates and reports of farmers’ planting intentions, acreage of most commercial vegetables in the Eighth District this spring should be appre ciably greater than 1943 harvested acreage. Gen eral increases in plantings are indicated for aspar agus, cabbage, onions, and other commercial crops, but the number of acres sown to spinach and wrhite potatoes may be less than last year. In Tennessee, most tomato seeds have been sown in hot beds and some are up to good stands despite excessive rains and cloudy weather. Transplanting of tomatoes in Mississippi will probably begin late in March. The district strawrberry crop will be considerably less than in 1943 due to a decline in 1944 planted acreage. In Arkansas, where most of the district crop tis grQwiij only 9,400 acres will be cultivated this year compared with 17,000 acres harvested in 1943. The decline is due primarily to the drouth last summer which killed many beds. Heavy rain fall last month, however, revived some plants and those remaining seem to be in good shape. Condi tion of strawberries in Tennessee on March 1 is reported to be about 10 points below last year due to drouth last summer and fall, but recent rainfall and high temperatures have promoted early devel opment of plants. Hard freezes in early March injured the Arkansas fruit crop somewhat, but the full extent of the damage is not yet known. Peach, pear, and plum trees are in full bloom in some sec tions of Arkansas, and buds are well developed in other areas. Livestock — Despite record marketings of hogs and fairly heavy sales of other meat animals during the past year, livestock numbers on farms in Eighth District states on January 1,1944, were still of record proportions. All classes of livestock except sheep, horses, and mules were considerably above the large numbers reported on farms a year ago, although the increase was less in the district than in the United States. H ogs and pigs showed the greatest increase during 1943, and at the beginning of this year there were about 25 million head in Eighth District states, an increase of 2.5 million head, or 11 per cent, compared with a year ago. The num ber of cattle and calves, including dairy cows, in creased 4 per cent during the year from 13.9 million head to 14.4 million head, but sheep and lambs de creased 8 per cent. Chicken and turkey numbers on January 1, 1944, were 5 per cent and 7 per cent greater, respectively, compared with January 1,1943. The large increase in the number of livestock during the past year has resulted in an unusually heavy disappearance of feed, and on January 1,1944, stocks of corn and oats per grain-consuming animal unit in the United States were at the lowest point since 1938. In Eighth District states the number of grain-consuming animal, units on farms on Jan uary 1, 1944, was 7 per cent greater than a year earlier, while stocks of corn and oats were 14 per cent less than on January 1, 1943. Stocks per ani mal unit in district states were off 30 per cent from last year compared with a decline of 20 per cent in the United States, indicating that the feed situation is more acute regionally than nationally. Demand for feed in the Eighth District continues unabated. Mild weather during most of the winter materially relieved the feed shortage, but unfavor able weather in February and early March required considerable feedlot feeding. Storms and bad roads, together with a shortage of box cars, checked pri mary movement of grain to market and in the second week of March the corn supply situation was becom ing critical. T obacco -— Marketing of the 1943 burley tobacco crop is practically complete. Only five Keritucky markets reinained open on March 10. Sales this season generally have been at top prices, but some lower grades sold below ceilings. Through March 10, total season's marketings of Kentucky burley amounted to 278,744,199 pounds at an average price of $44.92 per hundred pounds. Last season’s gross sales amounted to 253,098,831 pounds and averaged $42.11 per hundred. Income from the 1943 Kentucky burley tobacco crop will be approximately 17 per cent greater than 1942 income. Prices of a number of ^grades on Eastern District fire-cured tobacco jnarkets'continued to decline, but because of increased offerings of good quality heavy leaf in the latter part of February and early IVlarph the general average price was maintained. Season's sales of Eastern District fire-cured tobacco through March 10 totaled 31,337,056 pounds, averaging $22.69 per hundred pounds. Marketings of W estern D is trict fire-cured tobacco through March 10 amounted to 11,070,561 pounds at an average price of $21.00 per hundred pounds. M ost of the W estern District and about three-fourths of the Eastern District crops have been sold. All one-sucker and Green River tobacco markets are now closed. Sales of one-sucker tobacco for the season amounted to 16,703,296 pounds and averaged $24.95 per hundred pounds, or $9.23 above the aver age price for the 1942 crop. Green River tobacco sales this season were the smallest ever recorded, but the average price was more than double that of last year. Season’s sales of Green River tobacco totaled 10,940,130 pounds and averaged $29.49. R E T A IL T R A D E Dollar volume of sales in retail trade lines report ing to this bank in February was up slightly from January, but off substantially from last February which was an unusually high month. Consequently the decline this year was to be expected and does not indicate that the peak in retail sales has been reached. Sales of weekly reporting department stores in the first tw o weeks of March ran 13 per cent above those of the comparable period last year. Part of this gain is probably due to the earlier date of Easter this year, but it also shows that the pres sure of consumer buying power in this area has not been lessened by layoffs at major war plants or con tinued heavy withdrawals for military service. At district department stores, dollar sales in Feb ruary were down 8 per cent from last year, but were 2 per cent above January. A heavy buying wave in February,;: 1943, lifted sales in that month 39 per cent over February, 1942, and 110 per cent over February, 1939. The 8 per cent gain from Jan1943, to January, 1944, was cancelled by the drop fcom a year earlier in February so that dollar volume of sales for the first two months this year was unchanged from last year’s level. ?Furniture stores in the district registered an in crease of 13 per cent in dollar sales from January, but were off 9 per cent from February, 1943. Con tinued difficulty in obtaining merchandise and the almost complete loss of household appliance sales are the major factors accounting for the drop from a year ago. A t men’s furnishings stores, sales were down 6 per cent from January and 37 per cent less than last. year. St. Louis wom en’s apparel store sales declined 6 per cent from a month earlier, and Pstgre 5 were off 30 per cent from February, 1943. District shoe store sales were off 13 per cent and 12 per cent, respectively, from a month and a year earlier. Stocks at most reporting retail stores increased substantially during February, and with the excep tion of furniture and men’s furnishings stores, were considerably above last year’s level. BANKING AND FINANCE Banking developments in the Eighth District dur ing the past month have been dominated by the shifts in deposits after the Fourth W ar Loan Drive and the March income tax payments. Banks exper ienced an increase in required reserves as a result of the expansion in private deposits as the Govern ment made payments from the W ar Loan Deposit Accounts upon which no reserves are required and which had been built up by purchases of securities during the drive. Payment of income taxes follow ing March 15 resulted in substantial loss of reserves by district banks. In the four weeks ending March 15, adjusted de mand deposits at 24 reporting banks in major Eighth District cities increased $67 million, while their U. S. Government deposits declined $65 million. In the follow ing week demand deposits of the banks de clined $20 million, reflecting income tax payments. In order to replenish reserves the member banks sold Treasury bills to the Federal Reserve Bank, and on March 22 bill holdings of reporting district banks were $35 million less than a month earlier. In ad dition, during the early part of March, the St. Louis banks sold substantial amounts of bills maturing in June to the Federal Reserve Bank. These bills will be used by bank customers for tax purposes over the June 1 Missouri State personal property tax date. During the month ending March 22, total invest ments at reporting banks decreased by $37 million. Some of the decline in bill holdings was offset by purchases of Treasury certificates of indebtedness. Exchanges and sales also produced substantial shifts in holdings of bonds, notes, and guaranteed securi ties. Total investments on March 22 were $188 million above the comparable date a year ago with all the rise due to increased holdings of Government securities. On March 22, commercial, industrial, and agricultural loans had declined $11 million from a month previous, but were $14 million above the com parable date in 1943. Total loans were down $15 million and up $38 million, respectively, from a month and a year ago. Since the last issue of this Review the English State Bank of English, Indiana, and the Citizens Bank of Pacific, Missouri, have become members of the Federal Reserve System. Page 6 PETRO LEU M ______________ Production______ Stocks (I n thousands o f barrels) Dec., 1943 N ov., 1943 D ec., 1942 Dec., 1943 Dec., 1942 A rk a n s a s ......... I l li n o is ............. In d ia n a ............. K e n tu ck y ......... 2,428 6,761 416 673 2,412 6,699 414 740 2,298 7,759 490 497 ......... 14,053 3,853 1,924 ....... 9,170 3,203f 1,846 10,278 10,265 11,044 20,750 14,219f T o t a ls ............. f Revised. R E C E I P T S A N D S H IP M E N T S A T N A T I O N A L S T O C K Y A R D S Receipts Shipments F eb., 1944 Jan., 1944 F eb., 1943 Cattle and C alves.........'. 89,556 112,467 81,497 H o g s ................................. 345,919 372,587 217,738 H orses and M u les......... 4,444 3,946 5,308 Sheep................................. 18,717 33,041 38,356 T o ta ls .......................... 458,636 522,041 342,899 W H O L E S A L E P R I C E S IN Bureau o f L abor Statistics Feb., Jan., (1 9 2 6 = 1 0 0 ) 1944 1944 103.3 A ll C om m odities. . 103.6 Farm P rodu cts. 122.5 F o o d s .................. 104.5 O th e r.................... 98.0 10.4.9 97.8 123.7 122.3 U nited States St. L o u is ........... Bureau o f L abor Statistics (1935-39=10.0) Feb. 15,, 1944 U . S. (51 cities) . . St. L o u is ........... Little R ock L ou isville......... M em phis........... 44,077 96,228 3,883 789 40,,795 88,324 5,245 7,548 COST OF FO O D Sept. 15, Jan. 15, 1942 1944 136.1 137.9 134.7 132.6 146.0 STATES + 0.3% + 1.1% — 0.4 — + 0.6 + 2.9 + 0.2 1.2 + 1.9 Feb. 15,’ 44 com p, with Jan. 15,’ 44 Sept. 15/42 0.3% 0.5 117.8 116.6 124.1 122.9 134.5 136.0 135.3 131.2 142.6 35,704 92,515 4,438 805 F eb .,’ 44 com p, with 1943 Jan.,’44' ' F eb.,’ 43 COST O F L IV IN G Feb. 15, Jan. 15, Sept. 15, 1944 1944 1942 Bureau o f Labor Statistics (1935-39=10.0) Feb., 1943 U N IT E D 102.5 119.0 105.8 96.2 121.8 Jan., 1944 133,462 144,977 141,912 THE Feb., Feb., 1944 + + 5.0% 4.9 Feb. 15,’44 com p, with Jan. 15,’44 Sept. 15/42 126.6 126.7 129.2 124.2 129.7 — 1.2% + 6.2% — 1.4 + 0.4 — 1.1 — 2.3 + + -j-f 7.3 4.7 5.6 9.9 I N D E X E S O F E M P L O Y M E N T IN M A N U F A C T U R I N G IN D U S T R IE S B Y M E T R O P O L IT A N A R E A S Bureau o f L abor Jan., Jan.,’ 44 com p, with Jan., D ec., Statistics D e c.,’43 Jan.,’ 43 1943 1943 1944 (1 9 3 7 = 1 0 0 ) 273.9 130.5 180.1 152.7 308.2 138.2 180.5 158.2 245.7 123.6 154.9 146.9 — — — — 11.1% 5.6 0.2 3.5 B U I L D I N G P E R M IT S N ew Construction Num ber 1944 1943 (C ost in thousands) 24 38 126 , 56 12 15 78 120 32 February T o ta ls .244 January T otals. , 664 257 196 E vansville........... L ittle R o c k ......... Cost 1944 1943 $ .. 3 88 141 89 $ 321 1,130, V A L U E C O N S T R U C T IO N ( I n thousands F e b .,’44 Jan.,’ 44 of dollars) Cost 1944 1943 28 2 456 196 17 54 115 22 274 137 245 68 31 218 122 $ 15 21 18 157 137 $178 23 24 65 751 699 344 602 443 684 485 381 313 1,041 215 CONTRACTS LET F e b .,’44 com p, with F eb .,’43 J an.,’ 44 F eb .,’ 43 — 32% — 59% C O N S U M P T IO N O F E L E C T R I C I T Y Jan., February, 1944 Feb., Feb., N o. of 1944 1943 com pared with Custom - 1944 K .W .H . Jan., 1944 Feb., 1943 ers* K .W .H . K .W .H . 7,832 3,327 16,760 6,285 7,462 87,675 8,830 2,423 16,334 6,543 6,325 90,387 8,653 3,0,29 15,676 5,751 5,378 83,613 T o ta ls ........... 345 129,341 * Selected industrial customers. 130,842 122,300 Evansville. . . . Little R o c k . . . Louisville. . . . .. Pine B lu f f .. . . 11.5% 5.6 16.3 3.9 Repairs, etc. Num ber 1944 1943 T otal 8th D is t.. . $ 6,139 $ 9,021f $ 14,846f S o u rce : F. W . D od ge Corporation, f Revised. (K .W .H . in thous.) + + + 40 35 82 31 19 — 11% +37 + 3 — 4 + 18 — 3 — 1 — 9% + io + 7 + 9 + 39 + s + 6 DEPARTM ENT STORES Net Sales February, 1944 compared with Jan.,’ 44 F e b .,’43 2 m os.’44 to same period ’ 43 S tock Turnover Stocks on Hand Feb. 2 9 /4 4 com p, with Feb. 2 8/4 3 Jan. 1 to Feb. 29, 1944 1943 Ft. Smith, A rk .. + 11% — 2% 15% f 0.98t 1.11 Little Rock, A rk. -j-20 —20 —10 1.12 1.15 + 8 Quincy, 111............- f Sf + 12f + 5f Evansville, I n d .. -j- 1 — 5 + 6 Louisville, K y .. . 4 1.18 1.27 — 3 + 2 + St. Louis, M o ... — 2 —10. — 3 1.01 1.01 + Springfield, M o. - 0+26 + 14 Memphis, Tenn. + 9 + . 12 1.15 1.18 + 7 + 1 * A 11 other cities. — 3 —2 + 27 0.91 1.12 8th F. R. D is t.. + 2f — 8t + 8t 1.051 1.08 -0-f , *E1 D orado, Fayetteville, Pine Bluff, A rk .; A lton, East St. Louis, H arrisburg, M t. Vernon, 111.; Vincennes, Ind. Danville, Hopkinsville, M ayfield, Paducah, K y . ; Chillicothe, M o .; Jackson, Tenn. tPrelim inary. T rading d a ys: February, 1944— 2 5 ; January, 1944— 2 5 ; February, 1943 — 24. O utstanding orders of reporting stores at the end o f February, 1944, were 29 per cent greater than on the corresponding date a year ago. Percentage of accounts and notes receivable outstanding February 1, 1944, collected during February, by cities: Instalment E xcl. Instal. Instalment E xcl. Instal. A ccoun ts A ccounts A ccounts A ccounts F ort S m ith........... °t Little R ock . . 31 L o u is v ille .... 33 Memphis . . . . 38 62% 63 62 52 71% 62 64- St. L ou is. . . . 37% Other cities. . 27 8th F .R . Dist. 35 IN D E X E S O F D E P A R T M E N T ST O R E SALE S A N D STO CK S 8th Federal Reserve District (1923-1925 average == 100) F eb., Jan., D ec., Feb., 1944 1944 1943 1943 Sales (daily average), U nadju sted..................126 Sales (daily average), Seasonally adjusted. . 146 Stocks, U nadju sted................................................ 98 Stocks, Seasonally adjusted................................. 103 S P E C IA L T Y STO R ES Net Sales February, 1944 2 m os.’44 compared with to same Jan.,’ 44 F eb .,’43 period ’43 123 154 91 104 225 136 88 95 143 166 91 96 Stocks on Hand Stock T urnover Feb. 2 9/4 4 com p, with Feb. 28/43 Jan. 1 to Feb. 29, 1944 1943 M en’s Furnishings — 6 °/ — 37% — 29% -0 -% 0.58 0.75 Boots and Shoes — 13 — 12 — 9 + 42 1.48 2.24 Percentage of accounts and notes receivable outstanding February 1, 1944, collected during February: M en’s Furnishings....................60% Boots and S hoes........................... 52% T rading d a ys: February, 1944— 2 5 ; January, 1944— 2 5 ; February, 1943 — 24. R E T A IL F U R N IT U R E S TO R E S Net Sales Inventories February, 1944 February 29, 1944 o f. compared with com pared with Collections Jan.,’44 F e b ./4 3 Jan.31/44 F eb .2 8 /4 3 F e b ./4 4 F e b ./4 3 — 3% — 40% 25% St. Louis A rea 1 . + 17% — 10% 25% + 18 — 10 — 3 — 40 25 St. L o u i s .. . . 25 — 11 — 12 Louisville A rea 2 + 12 29 23 + 4 — 13 — 23 29 L ouisville. . . . + 13 22 + 3 New A lb a n y . . + 1 1 — 4 + 20 29 23 + 7 M em phis.............. + 2 9 — 37 25 20 + 12 + 2 Little R o c k .......... — 6 — 13 — 4 — 33 25 25 * * * * + 20 Fort S m ith ......... + 11 33 26 Pine B lu ff..........., + 2 0 + 16 + 4 + 4 — 7 — 27 44 35 E vansville........... ■ + 7 + 4 8th D ist.T ota ls3 . + 13 — 9 — 1 — 30 26 25 *N ot shown separately due to insufficient: coverage,* but included in Eighth District totals. iln clu d es St.. Louis, M issou ri;; East Str Louis, and A lton, Illinois. 2Includes Louisville, K en tu ck y; N ew A lbany, and Jeffersonville, Indiana. 3In addition to above cities, includes stores in Blytheville, A rkansas; H enderson, Hopkinsville, Ow ensboro, K en tu ck y ; Columbus, Greenville, Greenwood, Starkville, M ississippi; Hannibal and Springfield, Missouri. PERCENTAG E D IS T R IB U T IO N Feb., ’ 44 Cash Sales............................................ . . . . 19% 81 Credit Sales. . 100 Total Sales. OF SALES Jan., ’ 44 Feb., ’ 43 20 % 80 10,0 18% 82 100 L O A D S IN T E R C H A N G E D F O R 25 R A I L R O A D S A T ST. L O U IS First nine days M a r./4 4 M a r./4 3 2 m os.’44 2 m os/43 Jan.,’44 F eb ./4 3 F e b ./4 4 275,675 154,775 156,563 136,318 47,316 40,964 311,338 S ou rce: Terminal Railroad Association o f St. Louis. W H O L E S A L IN G Lines of Commodities ' N et Sales Data furnished by Bureau o f Census, U. S. Dept, of Commerce. Autom otive Supplies......................... — __ Boots and Shoes................................. __ Drugs and Chem icals...................... . Dry G o o d s ........................................... + Electrical Supplies......... .... .............. ~h Groceries............................ ................. + H ardw are............................................ + Plumbing Supplies............................. — T obacco and its P rod u cts................ M iscellaneous..................................... — Total all lines*................................... * Includes certain lines not listed above. C O M M E R C IA L F A I L U R E S 8% 4 1 8 7 2 11 5 0 30 0 - + + Feb. 29, 1944 compared with Feb, 28, 1943 19% 26 1 — *2 + 4 + 16 + 6 + 8 + 9 + 2 — 15 + 3 IN E IG H T H Jan.,’44 F e ‘b .,’43 N um ber. 2 1 L iabilities........... $ 9,000 $ 10,000 S o u rce : Dun and Bradstreet. $193,00.0 F e b ./4 4 Stocks February, 1944 compared with Jan.,’ 44 F eb ./4 3 + 18 — 15 — 15 — 6 F. R. D I S T R I C T F e b ./4 4 com p, with ‘ ~ e b ./4 3 Jan.,’44 F 10 + 100% — 10 —809 «—95 C H A N G E S IN P R IN C IP A L A S S E T S A N D L I A B I L I T I E S F E D E R A L R E S E R V E B A N K O F ST. L O U I S Change from M ar. 22 - - 23, -Feb. Mar. 24, (I n thousands o f dollars) 1944 1944 1943 Industrial advances under Sec. 13b. .$ ......... Other advances and re d is co u n ts ... 7,510 U. S. securities.................................................... 662*099 662,099 — 7,785 + 116,023 — 7 + 7,435 + 29 5 ,7 8 8 Total earning assets....................................... 669,609 + 108,238 + 30 3 ,2 1 6 Total reserves.......................................................577,463 . 577,463 Total deposits.......................................................509,906 , 509,906 F. R. notes in circulation..................................745,864 745,864 — 136,992 — 37,963 + 13,353 — 67,151 + 29,977 + 210,167 Industrial commitments under Sec. 1 3 b .. — — 2 14 1,683 P R I N C I P A L R E S O U R C E A N D L I A B I L I T Y IT E M S O F R E P O R T IN G M E M B E R B A N K S Change from Mar. 22, Feb. 23, Mar. 24, (I n thousands o f dollars) 1944 1944 1943 $1,572,147 — 52,428 + 225,861 * 234,567 ■— 10* 724 + 14,200 Loans to brokers and dealers in securities. 4,547 •— 1,258 + 1,047 Other loans to purchase and carry securities5 26,887 •— 3,982 + 18,000 Real estate loans............................................ 64,107 + 408 — 1,854 Loans to banks.............................................. 400 .— 443 + 110 Other loans....................................................... 64,874 + 753 + 6,684 Total loans..................................................... 395,382 15,246 + 38,187 Treasury b ills.................................................. 56,911 .— 35,015 — 82,031 Certificates of indebtedness........................ 276,333 + 11,318 + 99,151 Treasury notes.................................................... 213,629 + 38,416 + 10,3,277 U . S. b o n d s..................................................... 502,757 •— 27,274 + 101,806 Obligations guaranteed by U . S. G o v t.. 19,784 — 22,277 — 22,078 Other securities................................................. 107,351 •— 2,350 — 12,451 Total investments........................................ 1,176,765 ■— 37,182 + 187,674 114,372 + Balances with domestic banks.................. 7,191 — 17,745 Demand deposits — ad justed **................ 906,576 + 40,235 + 2,463 Time deposits................................................... 227,637 + 3,147 + 30,703 254,777 U. S. Government d eposits........................ 48,941 + 196,245 Interbank deposits.......................................... 482,126 — 38,321 — 59,590 B orrow in gs....................................................... 7,500 — 7,785 + 7,500 *Includes open market paper. **O ther than interbank and Government deposits, less cash items on hand or in process o f collection. A bove figures are for 24 member banks in St. Louis, Louisville, M em phis, Little R ock and Evansville. Their resources com prise approxim ately 75% of the resources o f all member banks in this district. D E B IT S (I n thousands o f dollars) TO IN D IV ID U A L F eb., Jan., 1944 1944 9,700 El Dorado, A rk .......... $ 19,497 Fort Smith, A rk ........ 4,204 Helena, A rk ............... . 68,329 Little R ock, A rk ........ 15,923 Pine Bluff, A rk ........... Texarkana, A rk.-Tex. 18,754 12,958 A lton, 111..................... E .S t.L .-N a t.S .Y .,Ill. 79,507 17,197 Q uincy, 111................... Evansville, In d ........... 102,472 Louisville, K y ............. 321,851 Owensboro, K y ........... 15,153 Paducah, K y .............. 8,147 Greenville, M iss........ 11,289 Cape Girardeau, M o .. 5,0,65 4,532 Hannibal, M o ............ Jefferson City, M o .. . 22,697 St. Louis, M o ............. . 935,750 5,969 Sedalia, M o ................. 27,550 Springfield, M o ........ .. 8,701 Jackson, T enn............. Memphis, Tenn........... 236,708 T o ta ls............... .. (Completed March 24, 1944) 1,951,953 $ 9,334 22,764 4,379 73,771 19,203 18,502 14,0,98 81,334 16,757 106,006 362,156 19,546 8,030 12,870 5,843 4,489 22,168 997,761 5,517 30,197 8,966 278,287 2,121,978 $ ACCOUNTS Feb., Feb .,’ 44 com p. with 1943 Jan.,’44 Feb ./4 3 10,301 20,261 2,352 58,780 16,299 13,288 9,667 63,808 11,609 65,515 268,198 9,698 7,216 7,295 3,670 3,389 23,670 742,195 3,390 21,450 6,981 233,357 1,602,389 4% + 14 ■— 4 •— 7 .— 17 1 + 8 — 2 3 + 3 .— 11 — 22 2 + 12 + 13 1 + -U 2 — 6 8 + 9 .— 3 — 15 — 8 .___ 6 % ■— 4 + 79 + 16 2 + 41 + 34 + 25 + 48 + 56 + 20 + 56 + 13 + 55 + 38 + 34 4 + 26 + 76 + 28 + 25 1 + + 22 Page 7 INDUSTRIAL PRODUCTION PER CENT PHYSICALVOLUME SEASONALLY ADJUSTCft lSM-S»‘ IOOFOR TOTAL POINTS INTOTAL N A T I O N A L S U M M A R Y OF CONDITIONS B Y B O A R D O F G O V E R N O R S O F F E D E R A L R E S E R V E SY STE M Industrial activity was maintained at a high level in February and the early part o f March. Commodity prices and retail sales showed little change. Industrial production — Output at factories and mines was at about the same rate in February as in January and the Board’s seasonally adjusted index advanced point to 243 per cent o f the 1935-39 average. \ Federal Reserve indexes. Groups are expressed in terms of points in the total index. M onthly figures, latest shown are for February, 1944. INCOME PAYMENTS TO INDIVIDUALS Steel production continued to advance in February and in the first three weeks o f March. Output o f nonferrous metals showed little change as curtailment o f aluminum production offset increases in output o f other metals. Magnesium production was ordered curtailed, beginning in March, by approximately 3,000,000 pounds per month or 7 per cent o f January out put. Activity in the machinery, transportation equipment and other durable goods industries showed little change from January to February. Output o f textile products was maintained at the January level and pro duction of most manufactured food products declined less than is usual at this season. Butter and cheese production continued to increase seasonally in February. The volume o f hogs slaughtered under Federal inspection declined 6 per cent from the exceptionally high January level; a much larger decline is usual in this month. Chemical production continued to decline as output of small arms ammunition and explosives w7as further curtailed. Fuel production rose slightly in February to a level 10 per cent above the same month last year. Output of bituminous coal and crude petroleum was maintained at a high level, and anthracite coal production increased 19 per cent as a result of a seven-day work week in effect for the month of February. Based on Department o f Commerce estimates. W ages and salarie$ include military pay. M onthly figures raised to annual rates, latest shown are lor January, 1944. GOVERNMENT SECURITY HOLDINGS OF BANKS IN LEADING CITIES Distribution — Total retail sales in February continued about as large as in January and exceeded somewhat the volume of a year ago. A t depart ment stores sales in February were about 10 per cent smaller than last year when there was a buying wave in clothing. During the first three weeks o f March department store sales exceeded the volume of a year ago, reflecting in part the earlier date of Easter this year. Freight carloadings, after allowance for seasonal changes, were main tained during February and the first two weeks in March in the unusually large volume reached in December and January. Commodity prices — Prices of cotton and livestock increased somewhat from the middle o f February to the middle of March while most other wholesale commodity prices showed little change. Retail food prices declined 1 per cent from mid-January to mid-February owing chiefly to seasonal decreases in prices of eggs and citrus fruit. Retail prices o f most other goods and service advanced slightly. l§39 1940 1941 1942 1943 1944 Excludes guaranteed securities. Data not available prior to February 8, 1939 ; certificates first Reported on A pril 15, 1942. W ednesday figures, latest shown are for March 15, 1944. MEMBER BANKS IN LEADING CITIES Bank credit — During the latter part o f February and the first half of March the average level o f excess reserves at all member banks fluctuated around one billion dollars. Member bank reserve requirements increased by about 400 million dollars as the result of private deposit expansion which, in turn, was the result o f Treasury disbursements from war loan accounts which require no reserves. Money in circulation increased 400 millions and the gold stock declined by 130 millions. Funds to meet these demands^ were supplied by additions to Reserve Bank Security holdings and a temporary decline in Treasury deposits at the Reserve Banks. In the four weeks ended March 15, Government security holdings of the Federal Reserve Banks rose by 720 million dollars, reflecting mainly substantial increases in bill holdings under repurchase option; note and certificate holdings also increased. At reporting member banks in 101 leading cities Government security holdings declined by 540 million dollars during the four weeks ended March 15. Holdings of notes rose 1.5 billion dollars while bonds and guaranteed obligations declined as the result of an exchange of maturing and redeem able issues for a new 1H per cent note issue- Holdings o f bills also de clined, reflecting principally sales to the Reserve Banks. Loans to brokers, dealers, and others for purchasing or carrying Government securities,, which had increased moderately during the Fourth W ar Loan Drive, fell by 340 million dollars in the following four weeks. Commercial loans alscP declined somewhat. Demand deposits (adjusted) exclude U. S. Government and interbank deposits and collection items. Governm ent securities include direct and guaranteed issues. . W ednes day figures, latest shown are for March 15, 1944. Page 8 Adjusted demand deposits rose by 1.9 billion dollars during the four weeks ending March 15, representing a gain of more than half o f the funds with drawn from such accounts during the drive. Government deposits, at/these j banks fell by 2.6 billion dollars in the month following: dthe drive - u
@FedFRASER