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MONTHLY REVIEW
Of Agricultural, Industrial, Trade and Financial
Conditions in the Eighth Federal Reserve District
RELEASED FOR PUBLICATION ON THE MORNING OF APRIL 30, 1936
JOHN S. W O O D ,
Chairman and Federal Reserve Agent
FEDERAL
April 1, 1936, comp,
with output
1935
A v. 1928-32
_
2.1% + 6.4%
Mar. 1936 comp, with
Feb. 1936
Mar. 1935
Live Stock:
Receipts at National Stock Yards.~.+
Shipments from aforesaid Yards...... —
0.7% — 1.4%
0.6
+19.7
Production and Distribution:
Sales by mfrs. and wholesalers.......... +
Department store sales.......................+
Car loadings.........................................+
19.9
26.0
6.1
+ 6.9
+ 6.7
+14.6
Building and Construction:
Bldg.permits,incl. repairs j Cost!^1^... +109.1
Value construc. contracts awarded.—+ 81.2
+63.1
Miscellaneous:
Commercial failures {L L
^ l feW
a u u iH
u ctiesZ:"a ................... 29.2
Consumption of electricity................. + 2.9
Debits to individual accounts............+ 9.7
-
<
t»
i
/-.v
+24.3
+ 5.6
+ 8.2
Apr. 15/36 comp, with
Member Banks (24) :
Mar. 18/36 Apr. 17/35
Gross deposits...................................... + 0.9% +13.4%
Loans....................................................+ 2.0
+ 4.6
Investments..........................................+ 1.9
+ 9.4
large majority of business measurements and
actual statistics of commercial and manu
facturing interests reporting to this bank
during March and the first half of April reflected a
continuance of the upward trends in Eighth District
trade and industry which have been more or less
steadily in progress in recent months. These results
were achieved in the face of unfavorable weather
and flood conditions in certain sections of the area.
Output of manufacturing establishments, except
where affected by seasonal influences, was in excess
of the preceding month, and in most instances great
er than a year ago. Continued active demand for
merchandise of all descriptions was reflected in the
heavy volume of goods distributed through both
wholesale and retail channels and the increase in
freight traffic handled by railroads operating in the
district. The showing made during the first quarter
of the year was the most favorable in many respects
for any like period since the pre-depression era.
Owing to adverse weather conditions the Easter
trade was slow in getting under way, but during the
A
Secretary and Ass't Federal Reserve Agent
RESERVE
District Summary
Agnculture:
Estimated produc. of Winter Wheat-}-
C. M. STEWART,
BANK
OF
ST.
J. VION PAPIN,
Statistician
LOUIS
week or ten days immediately preceding the holiday,
there was a rush to fill postponed requirements, with
the result that retail trade volume exceeded that of a
year ago by a fair margin.
Activities in the heavy goods industries gained
in more than the seasonal amount during March and
early April. Despite the heavy volume of shipments
of finished and semifinished materials from the iron
and steel plants, backlogs as of April 1 were some
what larger than a month earlier. This was true
particularly of specialty manufacturers, including
farm implements, tractors, household appliances and
certain descriptions of machinery. Demand for iron
and steel goods for use in the rural area expanded
measurably as contrasted with the preceding thirty
days. Production and orders in the lumber industry
were reported in larger volume than a year ago,
and the movement of building materials generally
was in considerable volume. Somewhat greater than
the usual seasonal recession in production of bitu
minous coal was noted from February to March,
ascribable partly to the unusually heavy output
during the first and second months of the year.
March sales of automobiles exceeded those of Feb
ruary, also March a year ago. Consumption of
electric current by industrial users in March was
appreciably larger than a month and a year earlier.
Taken as a whole, weather conditions during
March and the first ten days of April were unfavor
able for crops and agricultural operations generally.
Considerable damage was done to fruits and vege
tables by the early April freezes, and prospects for
peaches and apples were sharply reduced. Withal,
preparations for planting spring crops, particularly
in the south, were about even with the usual season
al schedule at mid-April. In spite of the severe
winter, the winter wheat crop came through in good
shape. Based on conditions as of April 1, the U. S.
Department of Agriculture estimates the crop in
states of this district at 88,033,000 bushels, an in
crease of 2 per cent over a year ago and of 6 per
cent above the 5-year (1928-1932) average. Demand
for farm labor was more active than a year ago,
with wage rates substantially higher.
Page 1
March retail trade, as reflected in sales of de
partment stores in the principal cities, was 26 per
cent greater than in February and 6.7 per cent in
excess of the March, 1935, total; cumulative total
for the first quarter showed an increase of 7.4 per
cent over the comparable period a year ago. Com
bined sales of all wholesaling and jobbing firms re
porting to this bank in March were approximately
20 per cent and 7 per cent greater, respectively,
than a month and a year earlier; first quarter sales
of these firms were slightly below the like period
in 1935. The dollar value of building permits for
new construction in selected cities was 97 per cent
greater than in February, but slightly less than a
year a g o ; cumulative total for the first quarter
showed an increase of about 4 per cent over the first
three months of 1935. Dollar volume of construc
tion contracts let in the Eighth District in March
was 81 per cent more than in February and 63 per
cent above the March, 1935, total; first quarter vol
ume this year was 58 per cent in excess of the like
interval in 1935.
According to officials of railroads operating in
this district, the volume of freight traffic handled
during the first quarter was well in excess of the like
periods a year and two years earlier. Increases over
a year ago were recorded in all classifications except
livestock and merchandise L.C.L. A considerable
part of the total increase was accounted for by coal
and coke, an unusually heavy movement of which
fuels was occasioned by the long, severe winter.
Passenger traffic of the reporting roads in March
developed somewhat greater than the usual seasonal
increase, attributable in large measure to heavier
tourist travel than in recent years. Tonnage handled
by the Federal Barge Line between St. Louis and
New Orleans in March was about 30 per cent great
er than a year ago, and cumulative volume for the
first three months was about one-fourth greater
than in the like period in 1935.
Reports relative to collections during March
and the first half of April generally reflect a con
tinuance of the upward trends which have been in
effect in recent months. Questionnaires addressed
to representative interests in the several lines scat
tered through the district showed the following
results:
Excellent
March,
1936.........._ 2.9%
February, 1936.......
2.4
March,
1935........... 2.4
Good
44.2%
39.0
36.8
Fair
48.6%
42.6
52.8
Poor
4.3%
16.0
8.0
Commercial failures in the Eighth Federal Re
serve District in March, according to Dun and
Bradstreet, numbered 41 and involved liabilities of
Page 2
$511,000, w^hich compares with 50 defaults in Feb
ruary, with liabilities of $722,000 and (revised fig
ures) 43 insolvencies for a total of $411,000 in
March, 1935. (The 1935 figures are being revised,
in order to delete the real estate, insurance and
brokerage house failures which are not included in
data for 1936.)
Detailed Survey
MANUFACTURING AND W H O LESALIN G
Stocks
Net Sales
Mar. 31, 1936
3 months 1936
Mar. 1936
comp, with
compared with
comp, with same
Mar. 31, 1935
period 1935
Feb. ’ 36 Mar. ’ 35
+ 20.8 %
— 9.8%
Boots and Shoes......... + 26.9% + 1.7%
+ 10.0
+ 12.2
+ 11.8
Drugs and Chemicals.. 4-10.1
— 8.8
+ 0.5
+ 10.4
4-12.2
+ 8.6
+ 12.6
+ 9.5
Electrical Supplies...... 4-23.5
+ 13.6
+ 15.9
+ 12.5
4-11.0
— 8.4
+ 1.8
+ 3.3
+ 12.8
+ 9.3
+
3.2
+
13.4
+ 29.4
Lines of
Commodities
All above lines......... + 19.9
+
6.9
— 1.8
+ 2.3
Automobiles — Combined passenger car, truck
and taxicab production in the United States in
March was 424,571 against 290,964 in February and
429,793 in March, 1935.
Boots and Shoes — Conforming with the usual
seasonal trend, sales of the reporting firms in March
were greater than during the preceding month. The
extent of the increase, however, was considerably
less than the average during the past decade. The
movement of styled goods and Easter specialties
was interfered with by unfavorable weather, and
the volume was below expectations. Prices were
firm at the levels prevailing during the two preced1
ing months. Inventories decreased sharply from
March 1 to April 1, but were about one-fifth greater
than a year ago.
Clothing — March sales of the reporting cloth
iers were 36 per cent larger than in February and
22 per cent in excess of the March, 1935, total.
Stocks on April 1 were 7 per cent smaller than a
month earlier, and 18 per cent larger than a year
ago. Advance sales of apparel for summer and early
fall distribution are reported in slightly larger vol
ume than at the corresponding time a year and two
years earlier. Clearance of Easter merchandise at
retail was below expectations due to unfavorable
weather. Sales of work clothing were reported below
the volume a year ago.
Drugs and Chemicals — During the first quar
ter of the present year the trend of sales of drugs
and chemicals has been consistently upward. This
fact is reflected in an increase of approximately 12
per cent in sales of firms reporting to this bank dur
ing the first three months as contrasted with the
similar interval in 1935. While increases have been
general in all lines, most pronounced gains were
reported in chemicals used by the general manu
facturing trade. Aside from lower quotations in the
solvents group, no major price changes were re
corded.
Dry Goods — Business ascribable to Easter re
quirements was curtailed by adverse weather con
ditions. However, betterment in other descriptions
of merchandise resulted in increases of March sales
of the reporting firms of 12.2 per cent and 10.4 per
cent, respectively, as compared with a month and a
year ago. Early April volume was about on a parity
with a year ago, but with the arrival of seasonable
weather in the past ten days, orders have picked
up appreciably.
Electrical Supplies — March sales of the report
ing interests, which showed substantial increases
over the preceding month and a year ago, were the
largest for the month in any of the twelve years
during which these records have been maintained.
There has been a steady broadening in demand for
refrigeration, household appliances and radio mate
rial. First quarter sales were bolstered by heavier
requirements of the building industry.
Flour — Production at the twelve leading mills
of the district in March totaled 187,242 barrels,
against 220,229 barrels in February and 203,764 bar
rels in March, 1935. As was the case during the pre
ceding thirty days, purchasing of all grades of flour
was chiefly on a requirement basis. Export business
was confined mainly to routine transactions with
Latin-American countries. Prices declined slightly,
reflecting the lower values of cash wheat. Mill
operations were from 48 to 50 per cent of capacity.
Furniture — March sales of the reporting firms
showed about the usual seasonal increase over Feb
ruary and for the sixteenth successive month were
larger than for the corresponding period a year
earlier. The principal factor in the increases during
recent months has been household furniture and
furnishings. Marked improvement was also noted
in demand for office furniture and equipment. Inven
tories decreased 4.9 per cent between March 1 and
April 1 and on the latter date were 13.6 per cent
larger than a year ago.
Groceries — Steady betterment in demand for
groceries in the rural areas was noted during the
past thirty days, reflecting largely seasonal demands
of farmers. Lateness of the shipping season for early
vegetables and fruits had a stimulating effect on
ordering of canned goods and preserved foods.
Hardware — Business in this clasification main
tained the upward trends which have been in effect
during the past eighteen months. Notable better
ment was reported in builders’ tools and hardware,
paints and kindred lines. Purchasing of hand imple
ments, garden and dairy supplies and poultry equip
ment was reported in larger volume than in any like
period since 1930.
Iron and Steel Products — The iron and steel
industry in this district during the past thirty days
carried further the almost continuous improvement
which has been in effect since last fall. Specifica
tions on seasonal materials, particularly for build
ing, were in sizeable volume, and new buying also
expanded notably. Requirements of the automo
tive industry were outstanding, releases of castings
being freer than at any time this year. Purchasing
by the railroads of a variety of commodities was in
considerable volume, and betterment was reported
in takings by the petroleum industry. Reports of
warehouse interests and jobbers indicate March
business the largest for the month since 1930, and
since April 1 there has been a further expansion in
new orders placed. Makers of farm implements
report first-quarter production and shipments the
highest in more than a decade; backlogs acquired
by them are sufficient to support the present rate of
activities through the early summer. Price in
creases on sheets, strips and wire, which became
effective April 1, had a moderately stimulating effect
on purchasing of these commodities throughout
March. Otherwise prices on finished and semi
finished steel were steady. Deliveries of pig iron
to district melters during March continued in heavy
volume, but some falling off in new buying was
noted, and contracting for second quarter require
ments is on a conservative scale. Further advances
were recorded in prices of scrap iron and steel, a
number of important items reaching new highs on
the present upward movement. For the country as
a whole, according to the magazine “ Steer’, produc
tion of pig iron in March totaled 2,046,121 tons, the
highest since last December, comparing with
1,838,932 tons in February and 1,770,990 tons in
March, 1935. Steel ingot production in the United
States during March amounted to 3,346,489 tons,
against 2,967,803 tons in February and 2,868,141
tons in March a year ago.
MINING
Production of bituminous coal in fields of the
district declined sharply in March, and total output
was measurably below that of a year ago. The de
crease from February was partly due to the extra
ordinarily heavy production during the first two
months of the year, also to the usual seasonal influ
Page 3
ences. The cold snap in early April stimulated con
sumption of heating coal, and resulted in some
reordering by retail yards. A number of mines in
Arkansas have closed down, with little likelihood of
resuming operations until next fall. Stocks of steam
grades continue excessive, with prices depressed.
According to the United States Bureau of Mines,
the tonnage of soft coal lifted in this general area
in March was 9,440,000 tons, a decrease of 32 per
cent and 22 per cent, respectively, as contrasted
with a month and a year earlier. Activities in the
Tri-State lead and zinc district continued at a high
rate during March and the first half of April. For
the country as a whole March production of zinc
amounted to 42,483 tons, against 36,228 tons in
February and 36,735 tons in March, 1935.
R E TA IL TRADE
Department Stores — The condition of retail
trade is reflected in the following comparative state
ments showing activities in the leading cities of the
district:
Stock
Stock
___________ Net Sales_____________ on Hand Turnover
Mar. 1936
3 mos. 1936 Mar.31,’ 36 Jan. 1, to
compared with
to same comp, with Mar. 31,
Feb. 1936 Mar.1935 period’ 35 Mar.31,’ 35 1936 1935
El Dorado, Ark........ + 14.2% — 2.8% — 6.8% — 5.4%
.62
.65
Fort Smith, Ark........ + 25.6
+20.3
+11.5
+ 8.8
.59
.56
Little Rock, Ark....... + 10.9
+13.9
+16.5
— 10.6
.65
.52
Louisville, K y ............ + 37.7
+ 9.1
+ 9.6
— 1.7
.95
.85
Memphis, Tenn......... +25.9
+ 8.6
+ 7.9
+ 0.1
.75
.69
St. Louis, M o............ +25.8
+ 4.6
+ 5.7
+ 2.3
.97
.96
All Other Cities....... + 27.6
+12.0
4-12.1
+ 5.9
.68
.65
8th F. R. District....+26.0
+ 6.7
+ 7.4
+ 0.3
.89
.84
Percentage of collections in March to accounts
and notes receivable first day of March, 1936, by
cities, follow s:
El Dorado, Ark....................... 47.9%
Fort Smith, Ark..................... 39.6
Little Rock, Ark..................... 34.8
Louisville, K y......................... 49.4
Memphis,
St. Louis,
All Other
8th F. R.
Tenn........................40.2%
M o..........................52.7
Cities......................40.2
District................... 47.7
Specialty Stores — March results in men’s fur
nishings and boot and shoe lines are shown in the
following table:
Stock
___________ Net Sales_____________ on Hand
Mar. 1936
3 mos. 1936 Mar.31,’ 36
compared with
to same comp, with
Feb. 1936 Mar.1935 period’ 35 Mar.31,’ 35
Men’s F umishings....+ 21.2 % + 19.7 % + 11.7 % + 10.2 %
Boots and Shoes....... +60.7
+ 9.1
+10.2
— 0.7
Stock
Turnover
Jan. 1, to
M ar.31,
1936 1935
.56
.56
1.33 1.08
Percentage of collections in March to accounts
and notes receivable first day of March, 1936, fol
lows :
Men’s Furnishings................. 34.7%
Boots and Shoes......................37.9%
AGRICULTURE
Eighth District crop prospects as of April 1,
according to the U. S. Department of Agriculture
and the agricultural departments of the several
states, appear to be somewhat more favorable than
on that date in any of the preceding three years.
However, the outlook is not particularly bright be
cause of the freezes and storms which occurred
Page 4
during the final week of March and the first ten
days of April. The progress of farm work has been
quite extensive. The unusually severe and pro
longed winter made pastures late in starting and
the recent drop in temperatures, following the mild
early March, resulted in considerable damage to
fruit buds in widely extended areas. The cold
weather also caused appreciable losses of young
lambs. Quite generally through the district soil
conditions are very favorable for working, and seed
ing of spring crops.
Farmers generally are preparing their programs
with a considerable degree of optimism, and in most
sections are disposed to expand their operations,
though developments in the new Soil Conservation
scheme are likely to result in some modification of
their plans. With dairy and poultry products bring
ing unusually good returns in relation to the cost
of feed, and with mainly favorable weather condi
tions in March, both milk production per cow, and
egg production per hen, showed the largest increases
during that month than appear in the 12-year
record. Stocks of wheat on farms are unusually
low, but reserves of feed grains are somewhat great
er than average at this season, though not excessive.
Flood conditions of more or less severity oc
curred in the valleys of the Ohio andWabash Rivers.
The rise of the Mississippi River and some of its
tributaries south of the Ohio River caused overflows
and damage in Arkansas, Mississippi, Tennessee and
Kentucky, but in this general area to the middle of
April, major flood conditions were absent.
Winter Wheat — In its report as of April 1, the
U. S. Department of Agriculture estimates produc
tion of winter wheat in states including the Eighth
District at 88,033,000 bushels, which compares with
86.251.000 bushels harvested in 1935, and the 5-year
(1928-1932) average of 82,742,000 bushels. Combi
nation of the extremely cold winter, Hessian fly
infestation, smothering in low spots due to ice cov
ering and chinch bugs has resulted in a very spotted
condition of the crop, and abandonment is expected
to be the heaviest since 1917. Over scattered areas
growth has been retarded by dry weather in March
and occasional cold spells in that month and early
April. Stocks of wheat on farms in these states are
estimated at only 8,288,000 bushels as against
12.365.000 bushels on April 1, 1935, and the 5-year
average of 10,828,000 bushels.
Corn — In states of this district, intentions of
farmers are to plant somewhat larger acreages of
corn than a year ago, but less than the 1928-1932
average. Almost universally the condition of seed
corn is the worst in a number of years, and farmers
are being urged to carefully test all grain before
planting. Stocks of corn on farms in these states
are estimated by the U. S. Department of Agricul
ture in its April 1 report at 257,185,000 bushels, as
against 160,555,000 bushels on the same date in
1935, and the 5-year average of 274,168,000 bushels.
Fruits and Vegetables — Peach prospects were
further reduced by the freezes at the end of March
and early April. In many important producing
areas, particularly in Illinois and Missouri, the
injury amounts to a virtual failure of the present
year’s crop. In addition, reports from many sections
indicate that trees were killed and are being grubbed
out by orchardists. Buds of apples, cherries and
other tree fruits sustained considerable damage,
and while it is too early to estimate the extent of
the injury, it is expected that crops will be consider
ably reduced. The low temperatures also wrought
much damage to early truck gardens, necessitating
extensive replanting. Strawberries are believed to
have come through the winter in fairly good shape.
The condition of the early potato crop as of April 1
in 10 southern states averaged 76.3 per cent of nor
mal, about the same as a year ago and 1.2 points
below the 9-year (1924-1932) average of 77.5 per
cent on the same date.
Live Stock — Increases in wholesale prices of
dressed meats, which resulted in higher quotations
on most grades of livestock, featured the general
livestock situation in this area during March and
early April. The movement to market of all species
other than sheep and lambs in March was in excess
of a month and a year earlier. The late season is
reflected in later than usual marketing of lambs.
Complaints of mortality among the early lamb crop
as a result of the April freezes have been received
from some sections. As a rule feed supplies are ade
quate, though not as a whole excessive. Pasture
growth has been backward, particularly in the
northern tiers of the district, but in the immediate
past rains and warmer weather have served to
materially help the situation.
Receipts and shipments at St. Louis as reported
by the National Stock Yards were as follows:
_________Receipts_______
______ Shipments________
Mar.,
Feb.,
Mar.,Mar.,
Feb.,
Mar.,
1936
1936
1935 1936
1936
1935
Cattle and Calves..... 91,949 91,128 84,619
53,760 45,356
46,221
Hogs ......................... 205,604 198,749 190,808
132,413 139,997 107,711
Horses and Mules..... 9,806
4,727
8,6668,843
4,703
7,704
Sheep ......................... 26,559 37,011 54,4805,048 11,217
5,446
Totals.................... 333,918 331,615 338,573
200,064 201,273 167,082
Cotton— Until the second week of April, weath
er conditions were unfavorable for preparations for
the new crop in this general area. However, exten
sive work had been done before the cold weather,
and according to reports from Arkansas, Mississippi
and Southern Missouri, preparations are somewhat
ahead of the seasonal schedule. In the northern twothirds of the district, seeding does not become gen
eral before mid-April, so that weather conditions
during the last half of the month will largely deter
mine the timeliness of the start of the major portion
of the crop. Continued heavy sales of fertilizer tags
indicate that this year’s crop will be extensively fer
tilized. In states of the Eighth District fertilizer
tag sales in March, according to the National Ferti
lizer Association, were about one-fourth larger than
a year ago, and for the period January-March the
total was 11.8 per cent and 21.5 per cent greater,
respectively, than a year and two years earlier.
Prices of cotton fluctuated considerably during the
past thirty days. In the St. Louis market the mid
dling grade ranged from 10.75c to 11.50c per pound
between March 17 and April 15, closing at 10.95c on
the latest date, which compares with 11.50c on
March 16 and 11.65c on April 15, 1935. Combined
receipts at Arkansas and Missouri compresses from
August 1, 1935, to April 10, 1936, totaled 985,750
bales, against 938,863 bales during the like interval
a year earlier. Stocks on hand as of April 10 totaled
416,438 bales, against 455,888 bales on March 13, and
579,316 bales on the corresponding April date in
1935.
Tobacco — Official figures of the 1935 burley
tobacco crop indicate that 238,620,295 pounds were
sold at an average of $19.05 per cwt., which com
pares with 257,086,324 pounds for the 1934 crop at
an average of $16.94. In the Green River and Stem
ming districts, approximately 10,000,000 pounds
were sold at a general average of $7.00 per cwt. In
the dark fired districts of Kentucky and Tennessee,
it was reported as of April 1, that about 36,000,000
pounds had been sold on the Eastern District mar
kets at an average of $8.84 per cwt., and about
9,500,000 pounds in the Western District markets
at an average of $6.58 per cwt. The Western Dis
trict markets closed on April 10.
Deliveries to the Clarksville and Springfield
markets continue and prices for district types, both
light and dark are firm, especially for the better
grades. According to reports of the Growers’ Co
operative Association, the dark fired districts have
disposed of about 15,000,000 pounds of their hold
ings to domestic nicotine manufacturers.
Owing to the wet season the progress of prepa
rations for the new crop has been retarded, and indi
cations are that setting of tobacco plants will be
about three weeks late, the usual time for setting
Page 5
being about May 10. Early April conditions were
unfavorable for plant beds because of excessive
precipitation and freezing temperatures. Withal,
according to latest reports, the plants have not been
seriously damaged, though their development has
been backward.
COM M ODITY PRICES
Range of prices in the St. Louis market be
tween March 17, 1936, and April 15, 1936, with clos
ing quotations on the later date and on April 15,
1935, follow s:
H igh
Close
April 15, 1936
April 15, 1935
L ow
W heat
M ay .....................per b u ..$ 1 .0 2 ^ $ .97H $
i .o i 54
*July ....................... “
.93 M
.87H
•93H
*Sept..................... ... “
.92
.92
.84 y&
*N o. 2 red winter “
1.06
1.01 54
1.06
*N o. 2 hard “
1.06
1.07
1.03
Corn
M ay ................. .... “
.585^
.6 1 ti
.61H
*July ....................... “
.6 iy 2
.5954
■61H
*Sept..................... ... “
.59
.61 y2
.60H
.65 54
*N o. 2 m ixed
, “
.66
-61^4
*N o. 2 white ...
.6434
.6 5 X
Oats
.27
*M ay ..................
.25 54
*No. 2 white ....... “
.3154
.28 54
•2534
Flour
5 .00@ 5.70
Soft patent..... ...per bbl. 6.00
5.00
Spring “ ...... ..
“
7.15
6.65
6 .80@ 6.65
Middling Cotton.,..per lb.
.1095
.1150
.1075
H ogs on h oof........percw t.11.00
6.00
11.00@10.75
^Nominal quotations.
$
.98%
•97*4
.9854
.9954 @ 1.00
1.0754
.9 0 ^
.8454
.8 o y 8
.92y2
.9554
.4954
.54
5.95
7.60
5.00
@6.45
@ 7.75
.1165
@ 9.00
Public utilities companies in six large cities of
the district report consumption of electric current
by selected industrial customers in March as being
about 2.9 per cent in excess of February, and 5.6
per cent greater than in March, 1935. Detailed fig
ures follow :
T otals......405
32,904
*In thousands (000 om itted),
**Revised figures.
31,981**
+
2.9
Mar.,
Mar. 1936
1935
comp, with
* K .W .H . Mar. 1935
2,975
— 1.3%
1,370
+ 1 0 .3
7,349** + 1.7
1,829
— 1.5
504
+ 5 5 .6
17,122** + 7.4
31,149**
BUILDING
The dollar value of permits issued for new con
struction in the five largest cities of the district in
March was 96.8 per cent larger than in February
and 1.1 per cent smaller than the March, 1935, total.
According to statistics compiled by the F. W . Dodge
Corporation, construction contracts let in the Eighth
Federal Reserve District in March amounted to
$14,007,051 which compares with $7,729,827 in Feb
ruary, and $8,587,110 in March, 1935. Building fig
ures for March, follow:
Evansville ..
Little R ock
Louisville ..
M emphis ...
St. Louis....
N ew construction
Perm its
*C ost
1935
1935
1936
1936
48
41
$
53 $
45
30
24
44
22
52
190
93
173
146
205
272
670
356
243
780
455
Mar. Totals 732
Feb.
“
191
Jan.
“
201
*'In thousands.
CONSUMPTION OF ELECTRICITY
N o. of
M ar.,
F eb.,
Mar. 1936
Custom1936
1936
com p, with
ers
* K .W .H . * K .W .H . Feb. 1936
Evansville .... 402,937
2,992
— 1.8%
Little R ock... 351,511
1,414
+ 6.9
Louisville .... 827,473
8,188
— 10.0
Memphis ..... 311,802
2,076
— 13.2
Pine Bluff.... 20 785
758
+ 3.6
St. L ou is..... 197
18,396
16,553** + 1 1 .1
this year, or to April 4, totaled 8,521,081 cars, against
8,050,374 cars for the comparable period in 1935 and
8,124,238 cars in 1934. Estimated tonnage of the
Federal Barge Line betwreen St. Louis and New
Orleans in March was 141,100 tons, the highest since
last November, and comparing with 102,363 tons in
February and 108,468 tons in March, 1935.
+
5.6
506
369
243
Page 6
705
338
395
1,365
510
784
734
475
569
522
208
272
352
301
267
POSTAL RECEIPTS
Returns from the five largest cities of the dis
trict show an increase of 4.8 per cent in combined
postal receipts for the first three months this year
over the corresponding period in 1935 and a decrease
of 10.5 per cent over the final quarter of 1935. De
tailed figures follow :
________________ F o r Quarter Ended_____________ Mar. 1936
Mar. 31,
D ec. 31,
Sept. 30,
Mar. 31, com p, with
1936
1935
1935
1935
Mar. 1935
Evansville ........$ 163,050
$ 159,162 $ 135,476 $ 143,020 + 1 4 .0 %
L ittle R o ck .......
195,931
189,016
176,788
186,668 + 4.9
Louisville ..........
684,432
745,353
631,488
648,588 + 5.5
M emphis ..........
557,012
649,085
481,232
535,118 + 4.1
St. L ou is............ 2,457,735
2,791,218
2,214,149
2,357,124 + 4.3
T otals............ 4,058,160
TRANSPORTATION
The St. Louis Terminal Railway Association,
which handles interchanges for 28 connecting lines,
interchanged 87,029 loads in March, which compares
with 82,007 in February and 75,939 loads in March,
1935. During the first nine days of April the inter
change amounted to 25,444 loads, against 24,700
loads during the corresponding period in March and
21,720 loads during the first nine days of April, 1935.
Passenger traffic of the reporting roads in March
was 4 per cent greater in volume of revenue and
11.5 per cent in passengers carried, than during the
same month in 1935. For the country as a whole,
loadings of revenue freight for the first 14 weeks
1,339
682
742
_______ Repairs, etc.
*Cost
Permits
1936
1935
1936 1935
113
78
$
38 $ 27
92
125
24
32
97
60
35
96
167
193
136
91
264
167
236
242
4,533,834
3,639,133
3,870,518
+
4.8
LIFE INSURANCE
Sales of new, paid-for, ordinary life insurance
in states including the Eighth District during
March, the preceding month, and a year ago, togeth
er with the cumulative totals for the first three
months this year and the comparable period in 1935
are shown in the following table:
(I n thousands
M ar.,
o f dollars)
1936
Arkansas........... $2,427 $
Illinois..............
41,619
Indiana.............
11,112
K en tu cky..........
5,299
M ississippi........
2,328
M issouri............
15,475
T ennessee.........
5,300
F eb.,
1936
2,299 $
38,632
9,492
4,355
1,936
12,966
4,858
T otals............
83,560
U nited States... 525,043
74,538
460,463
M ar.,
1935
2,418
45,829
11,258
5,895
2,466
16,718
5,390
$
Jan.-M ar., In c.,
1936
1935
7,147 $ 8,442
121,335
145,050
30,723
35,457
14,818
17,351
6,342
6,893
42,561
50,908
15,014
18,100
Cumul.
change
— 15.3%
— 16.3
— 13.4
— 14.6
— 8.0
— 16.4
— 17.0
89,974
237,940
282,201 — 15.7
545,450 1,464,524 1,724,568 — 15.1
MONEY AND BANKING
Eighth District banking and financial develop
ments during the past thirty days included moderate
expansion in demand for credit, a slight increase in
gross deposits of commercial banks in the large
cities and a further upward movement in invest
ments of these institutions. Country banks in many
localities, but particularly in the south, have reduced
their balances with city correspondents, in order to
accommodate agricultural customers. Agricultural
requirements generally, however, continue to reflect
the late season. Liquidation of loans by mercantile
interests was in considerable volume, especially in
lines with which April is an important collection
month. About the average seasonal reduction in
commitments by grain handling and flour milling
interests was noted. Demand for funds for condition
ing livestock for market continues in fair volume.
Member Banks — Total loans and investments
of reporting member banks in the principal cities
increased 1.9 per cent between March 18 and April
15, and on the latter date were 9.4 per cent greater
than a year ago. Gross deposits of these banks de
clined sharply in the week ended March 18, reflect
ing Government financing operations, but turned
upward again in the second week of April and at
the end of the four-week period were 9 per cent
and 13.4 per cent greater, respectively, than a month
and a year earlier. Reserve balances showed little
change during the period, but continued substan
tially larger than a year ago.
A composite statement of the principal resource
and liability items of the reporting member banks
is given in the following comparative table:
A pr. 15,
1936
Mar. 18,
1936
A pr. 17,
1935
Loans and discounts (incl. rediscounts) :
Secured by U. S. G ov’ t obligations,
and other stocks and bonds............ ..$ 68,866
A ll other loans and discounts............ .. 164,079
$ 66,305
162,171
$ 62,687
159,992
T otal loans and discounts....................... .. 232,945
228,476
222,679
In vestm en ts:
U. S. G ov’ t securities............................ .. 244,596
Other securities......................................... .. 155,606
237,006
155,873
223,354
132,697
Total investments......................................... .. 400,202
392,879
356,051
Demand deposits...........................................
663,851
.. 179,697
657,092
178,953
569,255
174,872
Gross deposits........................................... .. 843,548
836,045
744,127
95,676
10,729
80,567
9,379
(In thousands of dollars)
R eserve balances with F. R . Bank...... ,,
Cash in vault................................................. ..
Bills payable and rediscounts with
T*Vr1era1 "Rpsprve "Rank...........................
95,994
10,718
N um ber of banks reporting.......................
24
24
24
T h e total resources of these banks com prise approxim ately 62.3%
o f all m em ber banks in this district.
The aggregate amount of savings deposits held
by selected banks as of April 1, were slightly higher
than on March 4, and 5.1 per cent in excess of the
total on April 3, 1935.
There was no appreciable change in interest
rates as contrasted with the past several months.
At downtown St. Louis banks rates charged as of
the week ended April 15 were as follows: Custom
ers prime commercial paper \y2 to SJ
/2 per cent;
collateral loans, 3 to 6 per cent; loans secured by
warehouse receipts, \y2 to 5^4 per cent and cattle
loans 5 to 6 per cent.
Changes in the principal assets and liabilities
of this bank appear in the following table:
Mar. 17,
1936
504
21
87
123,200
A pr. 17,
1935
$
543
16
99
108,200
T otal earning assets................................... 123,814
123,812
108,858
Total reserves ............................................... 229,074
Total deposits ............................................... , 183,575
F. R. Notes in circulation......................... 162,486
226,293
180,858
162,661
181,707
142,657
140,461
1,966
1,950
1,487
66.2%
65.9%
64.2%
A pr. 17,
1936
(I n thousands of dollars)
512
Industrial advances under Sec. 13b........,$
15
Other advances and rediscounts..............
87
Bills bought (including participations)..
, 123,200
Industrial commitments under Sec. 13b.
Ratio of reserve to deposit
,
$
The rates of this bank for accommodations
under the Federal Reserve Act remain unchanged.
Complete schedule of rates follow s:
2 % per annum for rediscounts and advances to m ember banks, under
Sections 13 and 13a.
per annum for advances to m em ber banks, under Section 10b.
4 Y-2 % per annum for rediscounts, purchases and advances to member
banks (including nonmem ber banks and other financing institu
tions), under Section 13b.
y2 % fiat for com m itm ents not exceeding six months to m em ber banks
(including nonm em ber banks and other financing institutions),
to rediscount, purchase or make advances, under Section 13b.
5 / , % per annum for advances to established industrial or com m ercial
businesses, under Section 13b.
4% per annum for advances to individuals, firms or corporations (includ
ing nonmem ber banks), secured by direct obligations of the U nited
States, under Section 13.
5 Y*% per annum for advances to individuals, partnerships and corpora
tions (excluding nonmem ber ban ks), under Section 13.
Debits to Individual Accounts — The following
comparative table of debits to individual accounts
reflects spending trends in this district:
Feb.,
1936
Mar.,
1935
Mar.,
(In thousands
of dollars)
1936
East St. Louis and Natl.
Stock Yards, 111..$ 26,990
3,729
El Dorado, Ark....
Evansville, Ind.... . 26,194
F ort Smith, Ark... . 10,368
3,812
Greenville, Miss... .
1,271
Helena, A rk...........
Little R ock, Ark.. . 35,390
Louisville, K y ....... 149,614
Memphis, Tenn.... . 101,713
5,076
Owensboro, Ky....
Pine Bluff, Ark...
6,960
7,070
Quincy, 111............
St. Louis, M o ...... 532,050
1,803
Sedalia, M o ...........
Springfield, M o .... . 13,340
6,094
*Texarkana, Ark..
$ 26,522
3,396
22,633
9,034
3,443
1,096
28,066
139,026
95,151
4,195
5,549
5,610
486,017
1,854
11,651
5,658
$ 23,698
3,709
19,180
8,361
4,044
1,474
28,423
139,467
100,643
4,532
5,886
5,641
497,981
1,756
11,610
4,700
. 931,564
848,901
861,105
Mar. 1936 com p, with
Feb. 1936 Mar. 1935
+ 1.8%
+ 9.8
+ 15.7
+ 14.8
+ 10.7
+ 16.0
+ 2 6 .1
+ 7.6
+ 6.9
+ 2 1 .0
+ 2 5 .4
+ 2 6 .0
+ 9.5
+ 2.1
+ 14.5
+ 7.7
+ 13.9%
+ 0.5
+ 3 6 .5
+ 2 4 .0
— 5.7
— 13.8
+ 2 4 .5
+ 7.3
+ 1.1
+ 12.0
+ 18.2
+ 2 5 .3
+ 6.8
+ 7.8
+ 14.9
+ 2 9 .7
+
+
9.7
8.2
"Includes one bank in Texarkana, T exa s, not in Eighth District.
Note— A bove figures include total debits charged by banks to
checking accounts, savings accounts, certificate of deposit accounts, and
trust accounts, of individuals, firms, corporations and U . S. Goverm ent.
Charges to accounts of banks, debits in settlement of clearing house
balances, payments of cashiers’ checks, charges to expense and m iscel
laneous accounts, corrections and similar charges, are not included.
(Completed April 22, 1936)
Page 7
NATIONAL SUMMARY OF BUSINESS CONDITIONS
BY BOARD OF G O VERNO RS OF FE D E R A L RESE RV E SYSTEM
Production and employment at factories increased from Feb
ruary to March, while output of minerals declined. There was
considerable expansion in retail trade.
Production and Employment — The Board’s combined index
of industrial production, which includes both manufacturing and
mining and makes allowance for seasonal changes, remained un
changed in March at the February figure of 94 per cent of the
1923-1925 average. Production of automobiles rose sharply in
March to a total of 425,000 passenger cars and trucks and contin
ued to increase during April. There was a seasonal increase in
output of steel in March, followed in the first three weeks of
publicly-owned projects continued considerably smaller than in
December and January, when the dollar volume of such contracts
was relatively high.
Distribution— Retail trade, which had been reduced in Janu
ary and February by unusually severe weather, increased con
siderably in March. Sales at department and variety stores and
by mail order houses serving rural areas showed a more than
seasonal increase. The number of new automobiles sold was also
larger than in February.
Freight-car loadings of most classes of commodities increased
from February to March by more than the usual seasonal amount.
Index of physical volume of production, adjusted for seasonal variation, 1923-1925
a v e r a g e s 100. B y months, January, 1929 through March, 1936.
L a te s t figure, preliminary 94.
Indexes of value of sales, 1923-1925 average=100. B y months, January, 1929
through March, 1936. Latest figures, March, preliminary adjusted 88,
unadjusted 78.
April by a rapid rise in activity. Estimates of the rate of pro
duction in that period averaged around 67 per cent of capacity as
compared with the rate of 59 per cent reported for March. Produc
tion of cement and lumber increased more than seasonally from
February to March; activity at meat packing establishments and
at silk mills also increased, although a decline is usual in these
industries at this time of the year. There was little change in out
put at cotton textile mills, while at woolen mills activity decreased
by more than the usual amount. Production of anthracite and
bituminous coal showed a substantial reduction from the relative
ly high level of Februarj^ and this decrease accounted for the
decline in total output at mines.
PER CENT
120
110
120
F A C T O R Y E M P L O Y M E N T A N D PA>' R O L U
A
100
Total loadings declined somewhat from the relatively high level
of the three preceding months, however, reflecting a sharp reduc
tion in shipments of coal.
Commodity Prices — The general level of wholesale com
modity prices, which had declined somewhat between the third
week of February and the middle of March, showed relatively
little change in the following four weeks. Retail prices of foods
declined during March.
Bank Credit— Excess reserves of member banks, after declin
ing sharply in the last half of March, increased by about $300,000,000 in the first three weeks of April to a total of $2,640,000,000.
BILLIONS OF DOLLARS
8
BILLIONS OF DOLLARS
M EM BER BAN K RESER VE
BALANCES
8
110
100
>
90
90
Emp!<oyment
80
\
%
M\i\\i/s\
60
a
/
it
Payrro l!s _ ^
*
\
50
40
V
a
\
80
/
/
V* \
70
s\
I
f\ j
/
/ V*
70
60
*
#
50
/
\t \V 1i
40
30
30
1929
1930
1931
1932
1933
1934
1935
1936
1832
1933
1934
1935
1936
Indexes of number em ployed and p ayrolls, without adjustment for seasonal varia
tion, 1923-1925 average = 1 0 0 . B y months, January, 1929 through March, 1936.
Latest figures, March, preliminary, factory em ploym ent 84.2, factory payrolls 75.7.
W ednesday figures of total m ember bank reserve balances at Federal Reserve
b ank s, with estimates of required and excess reserves, January 6, 1932,
through A pril 15, 1936.
Factory employment increased by more than the usual sea
sonal amount from the middle of February to the middle of
March, and payrolls showed a larger increase. Employment in
creased in the machinery industries, at saw mills, and at establish
ments producing wearing apparel. There was a decrease in the
number of workers at plants producing rubber tires and tubes,
where a strike was in progress in the middle of March. At auto
mobile factories the number employed declined slightly, while
payrolls showed a considerable increase.
The value of construction contracts awarded, according to
figures of the F. W. Dodge Corporation, showed a seasonal in
crease from February to March. Awards for residential building
increased seasonally and contracts for other private construction
advanced to the highest point since 1931. Value of awards for
Page 8
This increase, like the preceding decline, was due chiefly to opera
tions of the Treasury. After the middle of March Treasury bal
ances at the Federal Reserve banks were built up through the
collection of taxes and receipts from the sale of new securities;
in April these balances were drawn upon to meet expenditures.
Partly as a result of these expenditures, deposits at reporting
member banks in leading cities, which had declined in March,
increased in the first half of April, when total loans and invest
ments of these banks also increased. From February 26, to April
15, total loans and investments of reporting member banks showed
an increase of about $800,000,000, reflecting increases of $380,000,000 on investments, of $180,000,000 in loans to brokers and dealers
in securities, and of $240,000,000 in so-called “other” loans, which
include loans for commercial, industrial, and agricultural purposes.
@FedFRASER