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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.