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FEDERAL RESERVE BANK OF ST. LOUIS MONTHLY REVIEW OF BUSINESS CONDITIONS IN EIGHTH DISTRICT Released for Publication On and After the Morning of April 3 0 , 1928 WILLIAM McC. MARTIN Chairman of the Board and Federal Reserve Agent E S P IT E the handicap of generally unfavor able weather, business in this district dur ing the past thirty days continued the moderate rate of improvement noted during the two preceding months. Some irregularity existed, both in respect to localities and the several lines, but in a majority of cases satisfactory results were obtained. Abnorm ally low temperatures over vir tually the entire district hampered distribution of spring merchandise, particularly goods for common consumption. Easter shopping was slow getting under way, but the momentum acquired during the week or ten days preceding that day brought the total of sales of typically Easter goods well up to the average of recent years. In the retail trade, however, relatively better results were achieved in the urban communities than in the country and smaller centers of population. March sales of depart ment stores in the seven largest cities of the dis trict were 6.9 per cent greater than in the same month last year, and there were also fair gains re ported by five and ten cent stores and mail order houses. Debits to checking accounts in the chief cities in March were larger by 10.7 per cent than in February, and 3.2 per cent in excess of the March, 1927, total. D Aside from the coal mining areas, the general industrial situation was in more favorable condition than at any time since last fall. Building permits issued and contracts for construction enterprises let in March showed sharp gains over the preceding month, the dollar value of permits representing the largest total since last November. In the iron and steel industry some unevenness developed, but the average rate of activity was higher than a month earlier, with certain important lines, notably stoves, farm implements, heating apparatus and architect ural iron, recording good gains. For the third con secutive month, distribution of automobiles and ac cessories increased in March. The number of unem ployed in the district was reduced further, surplus workers being absorbed in the seasonal acceleration of outdoor activities. The general trend of prices was upward, with sharp advances being recorded on certain farm products, notably wheat and corn. The rise in wheat was due to the unfavorable outlook for the grow ing winter wheat crop, prospects for which in this district are the worst in more than forty years. The labor situation exerted practically no in fluence on the status of the coal market. Unlike a year ago, closing of the bituminous mines in Illinois and Indiana on April 1 because of the miners’ strike, was preceded by no unusual efforts to accumulate reserve stocks. Users of both steaming and domes tic coal were purchasing chiefly for immediate neces sities, and apparently no apprehension was felt relative to future supplies. Prices fluctuated within narrow limits, and the advance in slack coal late in March was due to contraction in demand for pre pared sizes rather than increased purchasing by in dustrial consumers. In many instances supplies held by the industries are large, in some cases suffi cient to last through the next tw o or three months. The cold weather early this month and in late March served to stimulate demand for coal for heating pur poses, but these needs were easily met. In the K en tucky fields there was fair buying by railroads and public utilities companies, with contract renewals at about the 1927-1928 price levels. Offerings of Ken tucky coal are plentiful, and operators in that state are making a strong bid for business ordinarily going to the ununionized districts. A limited num ber of mines in the Illinois fields have reopened since April 1, operators paying the Jacksonville scale. Operations during March averaged from 3 to 5 days per week. Production of bituminous coal for the country as a whole during the present calen dar year to April 7, approximately 83 working days amounted to 136,688,000 net tons, against 178,065,000 tons in 1927 and 154,293,000 tons in 1926. A further shrinkage in the volume of freight car loadings on railroads operating in this district was reported during the past thirty days. Decreases were noted in virtually all classifications of freight, but were particularly heavy in coal and coke, mer chandise and miscellaneous freight. For the country as a whole loadings of revenue freight for the first 13 weeks of the year, or to March 31, totaled 11,791,270 cars, against 12,541,125 cars for the correspond ing period in 1927, and 12,169,728 cars in 1926. The St. Louis Terminal Railway Association, which han dles interchanges for 28 connecting lines, inter changed 245,780 loads in March, against 210,725 loads in February and 243,282 loads in March, 1927. During the first 9 days of April the interchange amounted to 63,626 loads, against 70,916 loads dur ing the corresponding period in February and 64,693 loads during the first 9 days of April, 1927. Passen ger traffic o f the reporting roads decreased 10 per cent in March as contrasted with the same month in 1927. Estimated tonnage of the Federal Barge Line between St. Louis and New Orleans in March was 104,200 tons, which compares with 125,228 tons in February, and 121,673 in March, 1927. A s contrasted with earlier months this year and the corresponding period in 1927, collections gener ally during the past thirty days were less satisfact ory. There were more complaints of backward pay ments by wholesalers and manufacturers than has been the case in a long while. In the rural areas, particularly through the South, preoccupation of farmers with intensive preparations for crops tended to hold down payments. In some sections wet weather and impassable dirt roads interfered with communications. Producers o f building materi als and manufacturers o f certain iron and steel pro ducts reported collections less efficient than here tofore. Since the first week this month, however, some improvement has developed in liquidation in both retail and wholesale lines, and indications are that the average for April will be as high as a year ago. Answers to questionnaires addressed to repre sentative interests in the several lines scattered through the district showed the follow ing results: E xcellent March, 1928.............. ...1.3% February, 1928.......... 2.5 March, 1927.............. 3.3 G ood Fair Poor 16.9% 35.5 26.8 66.2% 52.0 56.6 15.6% 10.0 13.3 Commercial failures in the Eighth Federal R e serve District during March, according to Dun's, numbered 104, involving liabilities o f $3,983,257, against 105 defaults in February with indebtedness o f $1,853,273, and 111 failures for $1,088,841 in March, 1927. The per capita circulation o f the United States on March 31, 1928 was $40.25, against $39.79 on February 29, 1928, and $41.70 on March 31, 1927. M A N U F A C T U R IN G A N D W H O L E S A L E Autom obiles — Combined passenger car and truck production in the United States in March totaled 413,000, which compares with 233,368 in February, and 394,300 in March, 1927. The upward trend in distribution of automo biles in this district noted during the preceding two months was continued during the past thirty days. A sharp gain in March sales over those of February took place, but the total was under that of March, 1927, due chiefly to the fact that one important manufacturer figuring prominently in last year’s total was on limited production this year. Business was reported good generally through all makes of passenger cars, and demand for trucks, particularly those for light delivery service in the large cities, was more active than heretofore. Sales of passenger cars in the country showed the usual seasonal im provement, but due to the poor condition of the winter wheat crop in this territory, prospects in the grain sections were less favorable than else where. Stocks of new cars on April 1 were slightly less than on the same date last year, and approxi mately 6.4 per cent larger than on March 1, this year. Demand for used cars continued active, with stocks somewhat larger than a month earlier, but at about the average levels for this season during the past several years. March sales of new passen ger cars by 320 dealers scattered through the dis trict were 52.3 per cent larger than in February, and 11.1 per cent less than in March, 1927. Sales of parts and accessories by the reporting dealers in March showed a gain of 16.8 per cent over February and of 5.3 per cent over March, 1927. Deferred pay ment sales of the new passenger cars by dealers reporting on this item, averaged 46.3 per cent in March, against 44.5 per cent in February, and 52.5 per cent in March, 1927. B oots and Shoes — March sales of the five re porting dealers were 1.3 per cent larger than for the same month in 1927, and 24.0 per cent greater than in February this year. Stocks on April 1 were 7.9 per cent smaller than thirty days earlier and 14.8 per cent larger than on April 1, 1927. The trend of prices of finished goods continues upward, chiefly in sympathy with the further rise in raw materials. Specific advances were reported on certain lines, and several manufacturers announced their intention of marking up other lines during the next few weeks. Easter business was disappointing, due to weather conditions. Retail stocks are reported slightly larg er than heretofore. Demand for work shoes is fair, but the recent upturn in prices has served to slow down buying in this line. Clothing — Unfavorable weather has tended to hold down the movement of seasonal apparel, partic ularly wom en's spring wear. Ordering for future delivery, however, has been in good volume, though price and style uncertainties are affecting purchas ing o f certain lines. Demand for work clothes is reported generally less active than at the corres ponding period last year. There was also a falling off in sales of raincoats as contrasted with the same time in 1927. N o change w orthy of note was re ported in prices, either as compared with thirty days or a year earlier. March sales of the reporting clothiers were 98.4 per cent larger than for the same month in 1927, and 79.5 per cent greater than the February total this year. Drugs and Chemicals — A s compared with a year ago, March sales of the five reporting inter ests were 0.6 per cent smaller, but the total was 13.2 per cent greater than in February this year. Sea sonal goods are m oving in good volume, and moder ate improvement was noted in demand for heavy drugs and chemicals from the manufacturing trade. Advance sales of fertilizer, insecticides and spraying material are larger than at this time last year. The retail drug business is reported satisfactory gener ally, but stocks are slightly larger than the average at this season during the past several years. D ry Goods — March sales of the 8 reporting firms were 11.6 per cent smaller than for the same month in 1927, and 20.2 per cent below the Febru ary total this year. Advance business was larger than last year, but orders for immediate shipment have been held down by unfavorable weather. Since Easter, however, immediate business has undergone considerable improvement. Comment is made that prospects in the winter wheat areas have been ad versely affected by the poor crop outlook. Collec tions are mainly satisfactory. Stocks on April 1 were 2.0 per cent smaller than thirty days earlier, and 11.8 per cent larger than on April 1, 1927. Electrical Supplies — A s compared with a year ago, March sales of the six reporting interests showed a loss of 16.9 per cent, but the total was 7.1 per cent larger than in February this year. Stocks on April 1 were 2.1 per cent smaller than a month earlier and 9.2 per cent in excess o f those on April 1, 1927. Demand for materials for buildings have shown slightly more than the usual seasonal increase, and the outlet through public utilities companies continues broad. Some falling off in sales of domestic appliances was noted, and radio material is less active than heretofore. Purchasing by the automotive industry is reported active. Flour — Production at the 12 leading mills of the district in March totaled 376,889 barrels the largest since last August, and comparing with 319,290 barrels in February and 345,095 barrels in March, 1927. Stocks of flour in St. Louis on April 1 were 0.4 per cent smaller than on March 1, and 11.5 per cent larger than on April 1, 1927. In sym pathy with the upturn in cash wheat, millers were asking sharply higher prices. Flour buyers, how ever, were not disposed to follow the advance to any extent, and business was chiefly on a necessity basis. Specifications on flour previously purchased were the best in sevaral months. Export demand continued quiet, with bids from Europe mainly be low views of sellers in this district. Mill operations were at from 50 to 55 per cent of capacity. Furniture — March sales of the 14 reporting interests were 9.4 per cent less than in the same month in 1927, and 0.8 per cent less than the Febru ary total this year. Stocks on April 1 were 5.1 per cent and 6.7 per cent larger than a month and a year earlier, respectively. Demand for household furni ture and furnishings continues quiet and was ad versely affected by unfavorable weather. Retailers are purchasing with conservatism, and only suffi cient for immediate requirements. Large stock orders are absent, and price resistance is apparent in some important lines. Office furniture equipment was quiet, but there continues an active demand for theater seating, hospital and school furniture and certain specialties for hotels and large apartments. Groceries — Business in this classification un derwent further quite marked improvement during the past thirty days. Retail stocks had been allowed to run down, and there was a general disposition to replenish in anticipation of spring requirements. Buying in the rural areas, particularly in the south, was more active than has been the case in a num ber of months. Lateness of the season for spring fruits and vegetables has had a stimulating effect on the demand for canned goods and preserved foods generally. The trend of prices was upward, with flour, cereals, and some other staples higher. March sales of the 14 reporting firms were 21.5 per cent larger than for the same month in 1927, and 28.8 per cent in excess of the February total this year. Stocks on April 1 were 5.5 per cent smaller than on the same date last year, and 0.9 per cent under those on March 1 this year. Hardware — Somewhat spotted conditions are indicated by reports of leading hardware interests. W eather conditions have been unfavorable for the movement of seasonal merchandise, and purchasing of staple hardware is disappointing. Relatively goods for use in the agricultural sections are more active than other lines. Since the first of this month improvement is reported in demand for building hardware and tools. Sales of paints, varnish and kindred lines are slightly under a year ago. March sales of the reporting firms were 2.8 per cent less than for the same month in 1927, but 7.1 per cent larger than the February total this year. Stocks on April 1 were 21.5 per cent and 1.2 per cent small er than a year and a month ago, respectively. Iron and Steel Products — The average rate of activities at mills, foundries and machine shops dur ing the past thirty days was maintained at about the same level as during the similar period imme diately preceding. W hile some important industries reported a falling off in new orders, specifying against materials contracted for in the first quarter offset the decrease in new business and assured maintenance of present schedules for another month or six weeks at least. Taken as a whole, purchasing of raw materials was below expectations, due to the fact that many manufacturers finished the first quarter with heavier stocks than anticipated, also to a general disposition to cover only on well de fined requirements. New buying and specifying by the automotive industry continued on a satisfactory scale, but purchasing by the railroads is still back ward. Orders for new equipment is being sparingly placed, and the m ovemenet of track supplies and miscellaneous materials is disappointing. The out let for iron and steel goods through the building industry broadened somewhat, and the outlook for the next three or four months is good. Fabricators of structural steel report the booking of a satisfact ory volume of orders, including a number of large projects. A s has been the case for the past several months, demand for reinforcing concrete bars is active, with manufacturers o f this material operat ing at, or close to full capacity. There is a good call for sheets of all descriptions particularly galvanized material and the lighter blue annealed varieties. Shipments of tin plate during March were the larg est for that month in more than a decade. W hile some slight improvement in purchasing of oil pipe, tank plates and refinery supplies was noted, the gen eral demand for oil country goods continues at a low ebb. Manufacturers of farm implements report an active demand for their products, and advance or ders considerably larger than at this time last year. Stove and heating apparatus manufacturers also re port continued activity in their lines. W arehouse interests in the district report March sales the larg est for any month this year, and slightly larger than in the same month in 1927. For the country as a whole, production o f pig iron in March continued upward, the total o f 3,208,281 tons com paring with 2,898,668 tons in February and 3,482,107 tons in March, 1927. Steel ingot production in the United States during March aggregated 4,507,520 tons, against 4,045,304 tons in February and 4,535,272 tons in March, 1927. Continued dullness prevails in the scrap iron and steel market. Excessive sup plies, coupled with lack of consumer buying, re sulted in a decline in prices to the lowest levels on the present downward movement. R E T A IL T R A D E The condition of retail trade is reflected in the follow ing comparative statement showing activity at department stores in leading cities of the district: Stocks on hand Stock turnover N et sales com parison Jan. 1, to Mar. 1928 3 months ending Mar. 31, 1928 Mar. 31, 1928 to com p, to Mar. 31, com p, to 1927 Mar. 1927 same period 1927 Mar. 31, 1927 1928 y r — 2 5.5 % .60 Evansville ...... .+ 1 6 .1 % + 4.1 % + 8.1 .52 . jS + 2.2 Little R o ck ..... . + 4.5 — 0.7 .72 .74 — 2.4 Louisville ....... — 1.8 .74 .62 — 9.4 .+ 1 1 .9 + 13.5 .63 — 3.9 .48 .+ 2 2 .6 + 19.8 .81 .90 + 3.7 — 8.0 . + 7.1 .37 .36 Springfield, M o . + 4.0 — 0.6 + 2 0 .3 .80 .73 — 6.0 8th D istrict..... . + 6.9 + 4.6 N et sales comparison Mar. 1928 compared to Mar. 1927 Feb. 1928 + 4 6 .8 % M en’ s furnishings............ — 16.1 % B oots and shoes...............+ 5.7 + 5 0 .1 Stocks on hand Mar. 1928 compared to Mar. 1927 Feb. 1928 0.5% 3.03 8.1 5.0 + + Department Store Sales by Departments — As reported by the principal department stores in Lit tle Rock, Louisville, Memphis and St. Louis. Percentage increase or decrease M arch, 1928 com pared to M arch, 1927 N et sales Stocks on hand for month at end o f month — 4.5% P iece good s.........................................— 5.7% — 8.1 R eady-to-w ear accessories............ + 7.3 W om en ’ s and misses’ — 1.5 ready-to-w ear................................+ 2 7 .0 — 8.3 M en’s and b oys’ wear..................... + 1 0 .3 — 8.8 H om e furnishings..................... ........ + 1.0 C O N S U M P T IO N O F E L E C T R IC IT Y Public utilities companies in the five largest cities of the district reported consumption of elec tricity by selected industrial customers in March as being 2.7 per cent less than in February, and 0.3 per cent greater than in March, 1927. In the monthto-month comparison the decrease is due to the closing of several important plants for repairs, and to seasonal curtailment of operations at ice and re frigeration plants. The gain over a year ago is fairly well distributed through all reporting indus tries. Detailed figures follow : Mar. Feb. N o. of 1928 Custom 1928 * K .W .H . * K .W .H . ers 1,209 1,028 Evansville ... 40 1,437 '1,275 Little R ock.. 35 5,530 5,511 Louisville .... 80 1,854 1,727 Memphis .... 31 15,232 St. Louis. .... 119 16,363 Totals. .....305 25,243 25,923 #In thousands (000 om itted). Mar. 1928 com p, to Feb. 1928 + 17.6% ’ + 12.7 — 0.4 + 7.4 — 7.0 — 2.7 Mar. 1927 ♦ K .W .H . 1,323 1,338 5,090 1,707 15,685 25,143 M ar. 1928 com p, to Mar. 1927 — 8.7 % + 7.4 + 8.2 + 8.6 — 2.9 + 0.3 The follow ing figures compiled by the Depart ment of the Interior, show kilowatt production both for lighting and industrial purposes for the country as a w h o le : B y water pow er Feb. 1928..............................2,566,688,000 Jan. 1928................................2,719,952,000 F eb. 1927..............................2,204,157,000 B y fuels 4,291,735,00d 4.476.565.000 ' ................ .... 3.881.793.000 Totals 6,858,423,Cm?— 7.196.517.000 6.085.950.000 POSTAL RECEIPTS Returns from the five largest cities of the dis trict show a decrease in combined postal receipts for the first quarter of 1928 of 1.9 per cent under the corresponding period in 1927, and a decrease of 10.5 per cent under the final quarter of 1927. De tailed figures fo llo w : F or Quarter E nding M ar. 31, D ec. 31, Sept. 30, 1928 '1927 1927 Evansville ......$ 174,000 $ 178,000 $ 166,000 L ittle R ock.... 242,000 239,000 224,000 Louisville ...... 742,000 822,000 719,000 M em phis ....... 668,000 788,000 562,000 St. L ou is........ 3,271,000 3,667,000 2,942,000 T otal.......... $5,097,000 $5,694,000 M a r.-31. 192ft Mar. 31, com p, to 1927 Mar. 31, 1927 $ 162,000 + 7.4% 237.000 + 2.1 739.000 + 0.4 517.000 + 2 9 .2 3,536,000 — 7.5 $4,613,000 $5,191,000 — 1.9 B U IL D IN G In point of dollar value, building permits is sued for new construction in the five largest cities of the district in March showed a gain of 1L7 per cent over the same month in 1927 and of 25.6 per cent above the February total this year. A ccording to figures compiled by the F. W . D odge Corp., building contracts let in the Eighth Federal Re serve District in March totaled $40,625,582, the highest since last October, and comparing with $35,293,872 in February and $42,703,808 in March, 1927. There was no change in the cost of industrial building during March, material prices remaining fairly constant and no variation being reported in labor schedules. Production of portland cement for the country as a whole in March totaled 10,223,000 barrels, against 8,798,000 barrels in February, and 11,450,000 barrels in March, 1927. Building figures for March fo llo w : N ew Construction ^Cost Perm its 1927 1928 1928 1927 . 462 """3^6 $ 398 $ 399 : 79 85 308 275 260 1,967 2,128 , 283 . 300 361 859 1,195 2,169 . 872 887 3,358 $6,890 $6,166 Mar. totals 1,996 1,969 Feb. totals 1,514 1,371 5,484 6,200 4,738 4,628 Jan. totals 1,161 954 #In thousands of dollars (000 om itted ). Repairs, etc. *C ost Perm its 1927 1928 1928 1927 “ 113 $ 58 $ 23 -1 1 2 42 36 88 144 204 73 79 115 99 70 111 146 517 499 537 463 155 751 599 1,017 638 468 $ 803 1,151 647 $856 438 416 A G R IC U L T U R E W eather conditions throughout this district during the past thirty days were mixed and varied in their effects upon agriculture. Moisture general ly was abundant, and reports from all sections indi cate excellent soil and subsoil conditions. There was sufficient sunshine and clear days to permit of con siderable plow ing and preparations for spring crop planting. This work in most sections made good headway, and is slightly ahead of the average sched ule during the past several years. On the other hand, the sharp drop in temperatures, follow ing a spell of warm weather, which occurred in the first week of April, caused substantial damage to fruits and early vegetables. In limited areas damage was done by overflowing of rivers and small streams, and in sections o f the south severe storms caused a set back to outdoor operations, and more* or less injury to early crops. Universally farm labor is reported adequate to all requirements, with an oversupply in some locali ties. For the most part seed supplies are also abund ant, and quality good. H eavy calls for oats, barley and other substitutes to plant in abandoned winter wheat acreage were easily met. The financial con dition of farmers at this time is better than in sev eral seasons, and programs are being formulated with a considerable degree o f confidence. Sales of farm implements, fertilizers, sprays, insecticides and other farm supplies are in larger volum e than at this time last year. In the case of the main crops indications are for somewhat larger acreages than a year ago, and further expansion in fruit and vege table culture, dairying and production of poultry products is the rule generally through the district. W inter W heat — The condition of winter wheat in all states entirely or partly within this district on April 1 was sharply below a year ago and the ten year average. Taken as a whole, wheat prospects in the district are the poorest in more than forty years, with acreage abandonment in some sections the largest on record. A fter a favorable start last fall, the crop encountered unusually unfavorable winter and spring conditions, including nearly all factors that cause winter killing. Through the winter there was little snow covering. A cold wave in late D e cember and early January was follow ed shortly by flooding and alternate freezing and thawing which badly heaved the plant. Late wheat is especially hard hit. Reports from w idely scattered sections indicate losses from 25 to 100 per cent. A large por tion of the abandoned acreage has been sown to oats, spring wheat, barley, legumes and much of the balance will be planted to corn. For the country as a whole the average condition of winter wheat on April 1 was 68.8 per cent of normal, compared with 84.5 per cent last year and 81.9 per cent, the average condition on April 1 during the past decade. Oats — Seeding of oats has advanced rapidly, and except in a few northern counties, had been completed at the middle of this month. O w ing to the unusually large abandonment of winter wheat acreage, much heavier planting of oats has taken place than was contemplated last fall. O w ing to this factor, no accurate estimate of the total area is possible at this time. Corn — Planting and preparations for seeding corn are well ahead of a year ago, when floods and excessive rains seriously interfered with this work. Due to small stocks on farms, abandonment of wheat acreage and recent high prices, prospects are for a sharp increase in acreage over that planted in the spring of 1927. Some early planted corn was killed by cold weather this month. Fruits and Vegetables — Generally fine pros pects for fruits and early vegetables were lowered substantially by the freezing weather in the first and second weeks of April. Serious injury was done to pears, cherries, peaches, early apples and some ground fruits. Early garden truck was frosted, necessitating replanting over a broad area. Damage to potatoes, however, was slight and confined to the northern tiers o f the district. Grapes and other late blossom ing fruits escaped injury and give promise of heavy yields. In several important grow ing sections, inducements offered by canners and manufacturers will result in increased acreages of tomatoes and some other commercial vegetable crops. Prospects for strawberries are the best in recent years in the Ozark Region, and cane fruits are expected to yield heavily. Live Stock — Pasturage is backward, due to the late spring, but reports from scattered sections of the district reflect generally satisfactory condi tions among farm animals. Prices of cattle and sheep have been well sustained, and after a long period of depression, hog prices in the second week of this month advanced to the highest point of the year. Receipts and shipments at St. Louis, as reported by the National Stock Yards, were as follow s: R eceipts Mar. F eb. M ar. 1928 1928 1927 Cattle and Calves..... 75,861' 81,898 96,475 H ogs ........................... 364,148 418,357 343,587 Horses and Mules.... 8,905 9,688 5,836 Sheep ............................ 24,285 20,900 26,148 Shipments Mar. Feb. Mar. 1928 '1928 1927 55,483 60,192 62,788 289,029 266,877 245,248 7,888 12,824 7,344 12,273 9,674 14,991 Rice — The past thirty days have brought about a marked improvement in the rice situation. Stocks of rough rice on farms were substantially reduced by heavy sales at an average advance of from 6 to 10c per bushel on some grades. The move ment of cleaned rice was in satisfactory volume. Good progress toward preparing for the new crop has been made, and indications are for acreages about the same as planted last spring. Cotton — In face of some unfavorable weather, fair progress has been made toward getting the new crop started. Preliminary operations in this dis trict are unusually well advanced, and actual plant ing is under way. Strenuous efforts are being made to get in the crop as soon as possible, in order to escape boll weevil hazard. Scattered reports indi cate heavier purchases of fertilizer this year than in the preceding tw o seasons. Demand for cotton has been fair only, with staple length relatively quiet. Prices advanced early this month to about 2c per pound above the low point in February. Stocks of cotton in Arkansas warehouses on April 13 were 145,088 bales, against 213,317 bales on the corresponding date in 1927. T obacco — The loose leaf markets in the Padu cah and W estern District closed for the season on March 30, and generally the clearance of the 1927 crop at this time is more thorough than has been the case with any crop in recent years. Preparations for planting the new crop continued active. Plant beds are plentiful, with plants in healthy condition. Farmers are cultivating the ground thoroughly, and in a number of localities are using more than the usual quantities of fertilizer. Indications are for an increase in acreage in the burley and fired dark dis tricts; in the green river or stemming district a small increase over 1927 is looked for, but in the one sucker or aircured district the disposition is to pro duce burley instead of dark leaf, and no increase over last year’s acreage is expected. Com m odity Prices — Range of prices in the St. Louis market between March 15, 1928 and April 16, 1928, with closing quotations on the latter date and on April 15, 1927. W heat July .................. N o. 2 red winter N o. 2 hard....... Corn Close ________ H igh L ow April 16, 1928 A pril 15, 1927 $1.56f£$1.27 @$1.3154 bu.$1.5654 $1.36% 1.5534 1.33H 1.5 5 54 1.24 54 @ 1.28*6 1.29 1.68 1.99 $1.9754 @ 1.99 ‘ 1.62 1.3454 1.3854 1.6154 @ 1.62 ■w .995/8 1.02K 1.03% .7454 .78 1.07 1.07% 1.0354 .97 1.01 @1.0154 1.0154 .73 1.02 .9754 1.01 @ 1.02 July .................. N o. 2 m ixed..... N o. 2 white...... Oats .65 N o. 2 white..... Flour Soft patent...... ..per bbl. 9.50 8.00 Spring patent. M iddling cotton... .per lb. .1954 H o g s on h oof...... .per cw t. 9.70 .65 .62 7.00 6.85 •1854 6.75 8.75 7.40 7.50 @ 9 .5 0 6.25 @ 8 .0 0 6.50 .1954 @ 9 .7 0 10.50 .46 @ 6.75 @ 6.65 .13 @ 11.50 F IN A N C IA L The volume of demand for credit for com m er cial, industrial and agricultural purposes was some what larger during the past thirty days than in the similar period immediately preceding, also than at the same time last year. W hile liquidation has been in satisfactory volume, new borrow ing has kept pace with payments at the commercial banks, with the result that their aggregate loans have been main tained slightly above recent levels. W hile funds continue plentiful and demand for investments is still brisk, the seasonal increase in credit require ments was reflected in a firmer trend in rates. Generally through the district the agricultural season is further advanced than the average at this date during the past several years. In many locali ties, country banks are reducing their balances with city correspondents in preparation for meeting the needs of their local customers. This is true particu larly in the south, where demand for money to finance the 1928 cotton crop is quite active, and in addition there is still a considerable volume of loans outstanding on the unsold portion of the 1927 crop. Since the first of this month commitments of the grain and milling interests have increased, reflect ing the sharp advance in flour prices and premiums on cash wheat. M ore favorable market conditions have resulted in liberal shipments of hogs, cattle and sheep and good liquidation of live stock loans. There is still an active demand for money to finance securities, loans of the reporting member banks based on stocks and bonds showing an in crease of 1.2 per cent between March 14 and April 11. The amount of Federal reserve bank credit in use in the district increased sharply during the past thirty days, and was substantially greater than dur ing the corresponding period last year. Deposits of the reporting member banks showed relatively little variation during the month, but ruled uniformly higher than a year ago. A t the St. Louis banks the current rates of in terest were as follow s: Prime commercial loans, 4y2 to 5% per cent; collateral loans, 4 y2 to 5y2 per cent; interbank loans, 4J4 to 5y2 per cent; loans secured by warehouse receipts, 4 y2 to 5y2 per cent; cattle loans, Sy2 to 6 per cent. Condition o f Banks — Loans and discounts of the reporting member banks on April 18, 1928 showed an increase o f 0.6 per cent as contrasted with March 14, 1928, and an increase of 2.6*per cent as compared with April 13, 1927. Deposits decreased 1.1 per cent between March 14 and April 18, and on the latter date were 1.4 per cent larger than on April 13, 1927. Composite statement follow s: * A pril 18, *Mar. 14, * A pril 13, 1928 1928 1927 N um ber of banks reporting................................ t30 t30 31 Loans and discounts (incl. rediscounts) Secured by U . S. G ov’ t obligations.......... $ 4,166 $ 4,183 $ 4,464 Secured by other stocks and bonds.......... 206,069 199,246 194,462 A ll other loans and discounts...................... 299,261 303,175 297,856 Total loans and discounts.................................. $509,496 $506,604 $496,782 Investm ents U . S. G overnm ent securities......................... 86,281 84,015 79,025 Other securities.................................... .......... . 136,626 132,891 121,523 T otal investments....................................................$222,907 $216,906 $200,548 Reserve balance with F. R . Bank................... 48,050 50,090 48,037 Cash in vault............................................................. 6,859 7,375 7,819 Deposits N et demand deposits......................................... 404,332 414,501 405,470 Tim e deposits...................................................... 247,265 248,354 233,829 Governm ent deposits......................................... 4,234 195 7,272 T otal deposits.......................................................... $655,831 $663,050 $646,571 Bills payable and rediscounts with Federal R eserve Bank Secured b y U . S. G ov’ t obligations...,.— 15,904 6,213 2,466 A ll others.......................................................... 13,053 11,342 3,351 #In thousands (000 om itted). tD ecreases due to consolidation. These 30 banks are located in St. Louis, Louisville, M em phis, L ittle R ock and Evansville, and their total resources com prise approxim ately 55.5 per cent of the resources of all member banks in the district. Loans and investments of all member banks in the Federal Reserve System on February 28, aggre gated $34,143,000,000, a decrease of $536,000,000 since December 31, the preceding call date, and an increase of $1,989,000,000 for the year. Member banks in central reserve cities reported a decrease of $518,000,000, of which $498,000,000 was in New York City, and those in other reserve cities a de crease of $41,000,000, while country banks reported an increase of $23,000,000. Loans and discounts, in cluding overdrafts, totaled $23,554,000,000, a de crease of $764,000,000 since December 31 and an in crease of $1,021,000,000 since March 23, 1927. Changes in the principal resources and liabili ties of all member banks as compared with figures for December 31, 1927, and March 23, 1927, were as follow s: »F e b . 28, 1928 »D ec. 31, 1927 »M ar.23,1927 Loans and discounts (incl. +$1,021,475 — $764,467 overdrafts).................................. $23,553,894 + 380,671 U nited States securities............ 4,215,822 + 238,265 Other bonds, stocks and — 9,332 + 586,854 securities....................................... 6,373,630 + $1,989,000 T otal loans and investm ents..$34,143,346 — $535,534 *— 865,494 + 473,937 Demand deposits........................... 17,304,646 + 1,104,944 + 157,840 Tim e deposits.................................. 12,922,638 — 180,949 — 320,818 Government deposits................... 86,032 — 417,181 + 294,993 Due to banks and bankers........ 4,176,408 + 8,508 59,542 Certified and cashiers’ checks.. 848,064 — 12,782 — 196,410 Acceptances outstanding.......... 731,009 34,459 Bills payable and rediscounts.. 580,892 — 82,583 *In thousands (000 om itted ). **Dem and deposits plus certified and cashiers’ checks outstanding and less exchanges and other uncollected items decreased $563,000,000. Debits to Individual Accounts — The follow ing table gives the total debits charged by banks to checking accounts, savings accounts, certificates of deposit accounts and trust accounts of individuals, firms, corporations and U. S. Government in leading cities of the district. Charges to accounts of banks are not included. *Mar. 1928 [. $ 64,114 El Dorado, Ark.... 8,120 Evansville, Ind...... 50,252 F ort Smith, Ark... 13,456 4,090 Greenville, Miss.... 3,010 Helena, A rk ............ Little R ock, Ark.. 82,874 Louisville, K y ........ 205,097 Memphis, Tenn..... 157,277 5,849 Ow ensboro, K y ..... Pine Bluff, A rk..... 12,271 Quincy, 111............ 15,210 St. Louis, M o ........ 787,292 4,986 Sedalia, M o ............ 17,775 Springfield, M o ..... **Texarkana, A rk -T ex........ 16,186 *Feb. 1928 *Mar. 1927 $ 62,684 7,941 45,498 12,571 3,729 3,382 74,797 187,415 135,369 6,375 10,585 11,467 711,761 3,873 15,646 $ 44,353 10,318 49,591 12,578 5,070 4,140 81,365 208,947 158,097 6,098 12,050 14,419 759,234 5,101 16,813 14,970 14,879 Mar. 1928 com p, to Feb. 1928 Mar. 1927 + 2.3% + 2.3 + 10.4 + 7.0 + 9.7 — 11.0 + 10.8 + 9.4 + 16.2 — 8.3 + 15.9 + 3 2 .6 + 10.6 + 28.7 + 13.6 + 4 4 .6 % — 21.3 + 1.3 + 7.0 — 19.3 — 27.3 + 1-9 — 1.8 — 0.5 — 4.1 + 1.8 + 5.5 + 3.7 — 2.3 + 5.7 + + 8.1 8.8 Totals............$1,447,859 $1,308,063 $1,403,053 + 1 0 .7 + 3.2 *In thousands (000 om itted). **Includes one bank in Texarkana, T exa s, not in Eighth District. Federal Reserve Operations — During March, the Federal Reserve Bank of St. Louis discounted for 173 member banks, against 163 in February, and 189 in March, 1927. Effective April 23 the discount rate was increased from 4 to 4 y2 per cent. Changes in the principal assets and liabilities of this institu tion as compared with the preceding month and a year ago appear in the follow ing table : Bills t U . S. Ratio of reserves to deposits and F. R. N ote Liabilities.. * In thousands (000 om itted). (Compiled April 23, 1928) * A pril 21, 1928 .$40,708 , 4,525 . 26,717 *M ar. 21, 1928 $28,690 8,120 29,776 1927 $14,851 22,336 27,659 .$71,950 . 53,040 . 83,415 $66,586 52,194 82,522 $64,846 43,151 83,462 . 53.3% 58.3% 50.9% JbUSIJNUSS UUJMDJLTIUNS IN T H E U N I T E D S T A T E S P R O D U C T IO N — Production o f manufactures was a year ago for all classes of com m odities except grains and maintained during M arch at the high level reached in Febru ary, and the output of minerals also showed little change. Production o f passenger automobiles and trucks during March totaled 412,825 the largest output recorded for any month since August, 1926, and production schedules in autom obile plants continued large during April. Activity in the iron and steel industry was also maintained at a high level during March and April, and lumber production was in larger volum e than a year ago. Cotton and w ool consum p tion declined in M arch but silk deliveries were the largest on record. There was som e decline in meat packing and in livestock. PR IC E S — T he general level o f wholesale com m odity prices showred little change in March, the index of the Bureau o f Labor Statsitics declining slightly from 96.4 to 96 per cent o f the 1926 average. There were decreases in the prices o f livestock, dairy products, meats, coal and rub ber. Prices o f grains, cattle feed, cotton and steel, on the other hand, advanced. During the first three weeks in April there were further substantial increases in the prices o f grains and more moderate advances in flour, hogs, cotton and lumber, while prices o f cattle and rubber declined. Index numbers of production o f manufactures and minerals adjusted for seasonal variations (1923-25 a v e ra g e = 1 0 0 ). Latest figures, M a rch : Manufactures, 111; Minerals, 104. Index of United States Bureau of Labor Statistics (1 9 2 6 = 1 0 0 , base adopted b y B ureau). Latest figure, M arch 96.0. the production o f sole leather, and the output of boots and shoes in March show ed less than the usual seasonal increase. Mining o f bituminous coal decreased during March by less than the usual seasonal amount but as the result of a strike in certain middle western mines, production in the early weeks o f April was considerably curtailed. Building contracts awarded were smaller in March than a year ago, while those for the first three weeks in April were in about the same volum e as in the corresponding period o f last year. As a result o f large contracts during the first tw o months o f this year, total awards for the year to April 20 exceeded those for the same period of 1927. Contracts for residential buildings and for public works have been especially large. T R A D E — Sales o f wholesale firms increased less than usual in March and w ere som ewhat smaller than in the same month o f last year. Sales o f department stores, on the B A N K C R E D IT — Between M arch 21 and April 18 total loans and investments o f member banks in leading cities increased by about $410,000,000, reaching the highest level on record. The advance was largely in loans on secur ities which show ed an increase o f nearly $380,000,000 and in April were close to the high point o f the first o f the year. Loans for com m ercial purposes continued the increase which began in February, and notwithstanding a small decline during the last week o f the period were nearly $350,000,000 larger on April 18 than at the end of January. The volume o f reserve bank credit in use increased by $180,000,000 dur ing the five weeks ending April 25, reflecting increased re serve requirements o f mem ber banks and a further net outflow of gold am ounting to m ore than $50,000,000. R e serve bank holdings o f securities were reduced by about $80,000,000 during the period, while discounts for member banks increased by $230,000,000. A cceptance holdings also show ed a small increase. M onthly averages of w eekly figures for banks in 101 leading cities. Latest figures are averages for first three weekly report dates in April. M onthly averages o f daily figures for 12 Federal reserve banks. Latest figures are averages of first 23 days in April. other hand, after allowance is made for customary seasonal changes and the early date o f Easter were about the same in March as in the preceding month and in March, 1927. Stocks o f merchandise carried in March by wholesale firms were larger, while those o f department stores were smaller than at this time last year. The volum e o f freight car loadings showed more than the usual seasonal increase in March, but declined in the first tw o weeks o f April. Loadings continued smaller than A firmer tendency in the m oney market was evidenced at the end o f March and during April by further increases in rates on call and time loans on securities, and by increases of from 4-4^4 per cent to 4 y2 per cent in the rate on com mercial paper and from 3y2 per cent to 3% per cent in the rate on 90 day bankers' acceptances. Between April 20 and April 25 discount rates were raised from 4 to 4 y2 per cent at the Boston, Chicago, St. Louis, Richm ond and M inneapo lis Federal Reserve banks.
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