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BUSINESS CONDITIONS Monthly Review of Agriculture, Industry, Trade and Finance Released for Publication on Morning of April 30th, 1940 FEDERAL RESERVE BANK Apple Blossoms in Northwest Arkansas OF ST. LOUIS SUMMARY OF EIGHTH DIS TR ICT 1940 comp, with Acreage Planted Agriculture: ’ 1939 Av. 1929-38 Prospective acreage, chief crops............+ 1.4%+ 2.1% Mar., 1940 comp, with Livestock Feb., 1940 Mar. 1939 Receipts at National Stock Yards..........+ 5.9%+ 8.8% Shipments from aforesaid Yards..........— 1.2 + 26.5 Production and Distribution: Sales by mfrs. and wholesalers..............+ 2.2 — 3.8 Department store sales............................. + 29.4 + 7.3 Car loadings ..............................................+ 7.5 + 3.8 Building and Construction: . 1 f Num ber... + 60.6 + 4.4 Bldg. perrmts, mcl. repairs j Cost..........+ 33 Q + 3fi 9 Value construction contracts awarded.. + 25.2 + 3.2 Miscellaneous: n • t x *1 i Number.............. + 3.8 — 38.6 Commercial failures \ Liabilities............- 54.9 - 68.4 Consumption of electricity......................+ 10.8 + 11.5 Debits to individual accounts............• • • + 11.7 + 7.9 Life Insurance Sales................................. + 15.1 — 1.4 Apr. 17, ’40 comp, with Member Banks (24) : Mar. 20,’40 Apr. 19/39 Gross deposits..........................................+ 0.5%+ 11.2% Loans...........................................................— 0.4 + 6.2 Investments...............................................+ 3.6 + 1.9 I N T H E E ighth Federal Reserve D istrict during March industrial activity continued to decline in some lines, but distribution of m erchandise as reflected by retail sales increased in greater than seasonal proportions. General business activity still continues above last year. Sales of departm ent stores in the principal cities of the district during M arch were 29.4 per cent more than in February and 7.3 per cent greater than March, 1939. D uring the first quarter of 1940 sales were 7.7 per cent larger than during the comparable period a year ago. Inventories rem ained larger than last year and on April 1 were 7.4 per cent greater than on the first day of April a year earlier. D istri bution by wholesalers and jobbers during M arch was 2.2 per cent greater than in F ebruary but 3.8 per cent less than in M arch last year. On April 1, inventories were 11.2 per cent more than on April 1, 1939. Retail sales of passenger automobiles in the St. Louis area in M arch were 41.6 per cent greater than in February and 27.9 per cent more than in March, 1939. F or the first three m onths of this year sales were 15.9 per cent greater than during the same period last year. D uring the last week of M arch production at iron and steel plants decreased to the lowest level of the year, but by mid-April had reacted to 45 per cent of capacity, compared with 55 per cent a m onth earlier. Producers in this area have met a price re duction of $4 per ton for the second quarter on hot and cold rolled sheets. Inventories are up and buy Page 2 ing has been light. Production of bitum inous coal at mines of the district during M arch was 1.5 per cent more than in M arch, 1939, but 16.5 per cent less than during February this year. For the first quarter this year production was 17.0 per cent more than for the like period last year. Oil production in fields of the district during F ebruary was more than double production in February, 1939, and 1.6 per cent more than in January. Value of construction contracts let in the district in M arch was one-quarter more than in February, and 3.2 per cent greater than during M arch last year. F or the first three m onths this year value of contracts was 3.4 per cent less than for the same period in 1939. Value of perm its for new building in the larger cities of the district was 58.2 per cent and 53.1 per cent larger, respectively, than a m onth and a year earlier. March was the only m onth, of the first three in 1940, recording an increase over the corresponding m onth in 1939. Due to the de cided increase during th at m onth, value of perm its issued to date was only 1.8 per cent less than dur ing the same interval in 1939. Consum ption of electric power by industrial users in the principal centers in M arch was 10.8 per cent and 11.5 per cent more than a m onth and a year earlier, respectively. F reight traffic of railways operating in this district was 7.5 per cent and 3.8 per cent greater, respectively, than a m onth and a year earlier. D uring the first quarter of 1940 freight traffic was 5.6 per cent more than during the first quarter of 1939. Debits to individual accounts at banks in the reporting centers were 11.7 per cent more than in February and 7.9 per cent greater than in March, 1939. For the first three m onths of 1940 debits were 9.7 per cent larger than for the same period last year. A ctivity on farms is progressing and preparations are being made for the coming crop. Some damage was done to tree fruits by the recent freezing tem peratures, but crops as a whole came through w ith less than expected damage. Receipts of livestock at district m arkets continued ahead of last year and for the year to date were 18.3 per cent more than last year. Estim ated production of w inter w heat will be the smallest for the past few years. Commercial failures in the E ighth Federal Re serve D istrict in March, according to Dun and B radstreet, num bered 27, involving liabilities of $130,000. In February there were 26 defaults, with liabilities of $288,000, and in M ^rch last year, 44 insolvencies for a total of $412,000. D E T A I L E D SU R V E Y OF D IST R ICT M A N U F A C T U R IN G A N D W H O L E S A L IN G L ines of C om m odities N e t Sales S to ck c D a ta furnished by B u re au of Census. U . S. D ept, of Com m erce. M arch, 1940 com pared w ith Feb., *40 M ar., ’39 M ar. 31, 1940, comp, w ith M ar. 31, 1939 A utom otive S u p p lies......... B oots an d S h o e s.................. Drug's and C hem icals. . . . D ry G o o d s........................... E lectrical S u p p lies .............. F u r n itu re .............................. G ro ceries................................ H a rd w a r e .............................. Tobacco and its P r o d u c ts . M iscellan eo u s....................... + — + — 6 .. 8 % 6 .7 , 4.: 2 .< + 13.: + 6. 11.. 2 1 .! + 7.< 7:. -f~ 2.6% — 12.5 + 0..9 — 6.7 + 15.5 + 2.3 — 3.2 + 0.9 + 5.0 + 3.3 — 3.1 + 14.3 12.0 + + 16.8 + 13.5 + 10.0 All wholesaling lines, for which statistics are available to this bank, showed an increase in sales during March of 2.2 per cent over February, but a decline of 3.8 per cent under March, 1939. Increases were reported in the m onth-to-m onth comparison for all lines except boots and shoes, dry goods, and those in the miscellaneous classification. Boots and shoes, dry goods, and groceries showed a decrease in sales compared w ith March last year. Inven tories continued well above last year and on April 1 were 11.2 per cent more than on April 1, 1939, but 1.4 per cent less than on March 1 this year. Clothing firms report sales during March 42.4 per cent in excess of February and 39.4 per cent larger than during March a year ago. As indicated by pre lim inary figures, shoe production in the E ighth Federal Reserve D istrict decreased 9.4 per cent during March. Automobiles—Combined passenger car, truck and taxicab production in the U nited States in March totaled 423,299, as against 403,627 in February and 371,940 in March last year. Iron and Steel Products—In g o t production in this territory in the last week of March declined to 39 per cent of capacity, the lowest level for the year to date. The production rate reacted considerably in the first week of April to 51 per cent, only to drop to 45 per cent by mid-April, a loss of 10 points com pared with the rate at mid-March. New business in all lines is light and consumers are buying from hand to mouth as prices are fixed and there is not much possibility of an advance. Inventories on the whole are in good shape and new orders are not being placed in large quantities. The price of hot and cold rolled sheets was cut $4 a ton for the second quarter, bringing prices from $5 to $7 a ton below levels of a year ago. P ro ducers in this district immediately met the cut in price. The reduction did not stim ulate buying in either item. Inventories of heavy melt steel are up and the price of this line is off 25 to 50 cents per ton. Mills are now out of the m arket generally, but several made fairly heavy purchases. Shipments from the country on orders are satisfactory, but new offerings are said to be light. For the entire country, total output of pig iron in March, according to the m agazine “Steel”, amounted to 3,270,575 net tons, which compares with 3,304,368 net tons in February and 2,680,446 net tons in March, 1939. O utput of steel ingots in the U nited States in March totaled 4,236,050 net tons, against 4,374,625 net tons in February and 3,814,013 net tons in March last year. R E T A IL T R A D E D epartm ent Stores — The trend of retail trade in the Eighth District, as reflected in statistics of de partm ent stores in the principal cities which report to this bank, is shown in the following comparative s ta te m e n t: , Ci . Stocks Stock ____ N et Sales on H a n d M arch, 1940 3 mos. ’40, M ar. 31,’40 com pared w ith to sam e comp, w ith F e b .,’40 M a r.,’39 period ’39 M ar. 31/39 F t. Sm ith, A r k ... L ittle Rock, A rk. L ouisville, K y . . . M em phis, T enn. . P ine Bluff, A rk .. Q uincy, 111. . . . . . St. L ouis, M o ... Springfield, Mo. . A ll O th e r Cities . 8th F . R. D istric t + 4 2 .8 + 3 3 .0 + 4 7 .8 + 3 3 .6 + 4 3 .1 + 4 1 .9 + 2 3 .6 + 8 5 .6 + 4 8 .2 + 2 9 .4 + + + + + + + + + + 13.7% 23.2 7.6 18.7 16.2 2.9 2.8 11.6 21.8 7.3 + 12.2% + 15.4 + 8.4 + 9.8 + 10.2 b 5.7 - 6.1 - 3.0 -17.6 - 7.7 + 2.5 % + 3.9 — 0.9 + 8.5 + 2 3 .3 — 2.3 + 9.9 — 6.7 + 6.4 + 7.4 T u rn o v er J a n 1, to M ar. 31, 1940 1939 .66 .79 .93 .81 .60 .90 1.06 .68 .79 .97 .63 .72 .89 .81 .63 .84 1.07 .68 .70 .96 Percentage of accounts and notes receivable out standing M arch 1, 1940, collected during March, by c itie s: In sta llm e n t E xcl. In sta l, A ccounts A ccounts F o rt S m ith . . . L ittle R o ck . . . L ouisville . . . M em phis . . . . ... % 15.1 16.2 27.6 40.8 % 36.6 48.9 41.5 In sta llm e n t Excl. In s ta l. A ccounts A ccounts Q uincy ......................... °/ St. L o u is .............. 20.4 O th e r C i t i e s . .. . 14.1 8th F . R. D istric t 20.1 48.1% 53.7 47.0 48.4 Specialty Stores — M arch results in m en’s fur nishings and boot and shoe lines are shown in the following ta b le : Stocks S tock N e t Sales on H a n d M arch, 1940 3 mos. ’40, M ar. 31,’40 com pared w ith to sam e comp, w ith F e b .,’40 M a r.,’39 period ’39 M ar. 31,’39 M en ’s F u rn ish in g s + 61.6% + 2 3 .6 % B oots and S h o e s. + 10,9.1 + 2 4 .1 -19.2% -10.7 + 10 .0 ? — 3.0 T u rn o v e r J a n 1, to M ar. 31, 1940 1939 .63 1.57 .60 1.50 Percentage of accounts and notes receivable out standing M arch 1, 1940, collected during M arch: M en’s F u rn is h in g s ................ 38.0% B oots and S h o e s.....................38.1% M IN IN G A N D O IL Coal — There was a small decrease in stocks of bitum inous coal held by industrial consumers dur ing February. On M arch 1, tonnage on hand totaled 32,626,000 net tons, or 2.9 per cent less than on Feb ruary 1. D uring February industrial consum ption of bitum inous coal decreased 13.3 per cent from the January figure, which was the largest for any month Page 3 since 1932, except M arch, 1937. F ebruary consum p tion totaled 28,771,000 tons. Production of soft coal in the U nited States dur ing M arch, according to the Bitum inous Coal Div ision of the U nited States D epartm ent of the In te r ior, totaled 35,400,000 tons, as against 39,105,000 tons in February and 35,438,000 tons in M arch, 1939. D uring the first quarter of this year production of soft coal was approxim ately 13 per cent more than during the same period last year. A t mines in this general area, production during M arch was 16.5 per cent less than in February, but 5.1 per cent m ore than in M arch a year ago. F or the first three m onths output was 17 per cent greater than for the same interval in 1939. A t Illinois mines 3,916,956 tons were lifted in M arch, as against 4,622,625 tons in F ebruary and 4,022,967 tons in M arch last year. T here were 113 mines in operation during M arch w ith 28,906 men on payrolls, against 117 active mines and 30,011 operatives in February. Petroleum — February production of crude oil in states of the E ighth D istrict was 1.6 per cent more than in January and 122.7 per cent greater than in February, 1939. Cum ulative total for the first tw o m onths this year was 118.4 per cent in excess of the corresponding period in 1939. Stocks on February 29 were 0.1 per cent less and 11.7 per cent greater, respectively, than a m onth and a year earlier. D e tailed production and stocks by states are given in the following table: (I n thousands of barrels) ________ Production Feb., Jan., Feb., 1940 1940 1939 2,098 11,500 193 383 14,174 1,483 4,542 59 380. 6,464 4,108 23,227 428 805 28,568 3,076 8,988 116 900 o OO o 2,010 Arkansas Illinois ............ . 11,727 235 Indiana ........... . 422 K entucky . . . . T o ta ls............ . 14,394 ____Stocks Cumulative 1940 1939 Feb. 29, 1940 1,934 13,630 3,664 1,289 20,517 T R A N SP O R T A T IO N Freight traffic handled during M arch by railroads operating in this district, according to officials of reporting lines, was larger than during F ebruary and the corresponding m onth last year. T he St. Louis Term inal Railw ay Association, which handles interchanges for 28 connecting lines, interchanged 84,595 loads in M arch, compared w ith 78,686 loads in February and 81,497 loads during M arch, 1939. D uring the first nine days of April the interchange am ounted to 22,410 loads, which compares w ith 25,290 loads during the corresponding period in M arch and 22,370 loads during the first nine days of April last year. Passenger traffic of the reporting lines in M arch increased 2.4 per cent in num ber of passengers carried and 6.1 per cent in revenue as compared w ith the same m onth in 1939. Page 4 Loadings of revenue freight for the entire country for the first thirteen weeks this year, or to M arch 30, totaled 8,164,834 cars, against 7,548,251 cars (revised figure) for the sim ilar period in 1939, and 7,158,681 cars in 1938. E stim ated tonnage of the Federal Barge Line betw een St. Louis and New Orleans in M arch was 156,400 tons, against 79,192 tons in February and 136,450 tons in M arch, 1939. For the first quarter this year cum ulative tonnage was 319,049 tons, as compared w ith 444,067 tons for the same period last year. W H IS K E Y In mid-April 42 of the 60 distilleries in K entucky were reported in operation, an increase of three over last m onth. Figures recently compiled show th a t as of December 31, 1939, there were in bonded w are houses in K entucky 3,951,692 barrels of whiskey, of which 271,866 barrels, or 7 per cent, were produced since A ugust 31, 1939. Of the 1939 production, 19 per cent was on h a n d ; 1938 production, 18 per cent ; 1937 production, 36 per cent, and prior years, 20 per cent, of which the larger part was produced in 1936. T he large distilleries are producing only enough whiskey to m eet replacem ent needs. T he bulk m ar ket is reported steady, w ith some firmer tone noticed. There has been no m aterial change noted in the industry. A G R IC U L T U R E Farm ing Conditions—Activities on farm s thro u g h out the E ighth D istrict are g ettin g under way. O at seeding has begun in various sections of the district. Preparations are being made for the grow ing of rice in the rice producing areas of the district and some corn has been planted. Generally, farm ers are ready to go ahead w ith their spring work. T ree fruits and spring vegetables are coming along slowly and will be from a week to ten days later than in past years due to the cool w eather in M arch and early April. Pastures are backward, averaging about 65 per cent of norm al on A pril 1, compared w ith 80 per cent last year. H ow ever, prospects ahead are for about average pastures. Due prim arily to a decline in prices of livestock, prices of farm products, as of the week ended April 6 , declined to 67.0 per cent of the 1926 average, or to the lowest point reached since December, accord ing to the U nited States Bureau of Labor Statistics index. T his compares w ith 68.5 per cent on M arch 9 and 63.8 per cent on April 8 , 1939. According to the U nited States D epartm ent of A griculture, indicated acreage of the principal crops to be planted in states wholly or partly w ithin the E ighth D istrict will be about 1 per cent larger this year than last. Indicated planting of all crops, except corn, cowpeas, and tobacco, will be equal to or slightly larger than the acreage planted in 1939. T he following table, based on M arch 1 planting intentions, shows acreage to be planted in 1940 by E ighth D istrict farm ers, also the num ber of acres of the several crops planted in the preceding year and the 10-year (1929-1938) average: ____________ A creage (In thousands)_________________ _______ P lanted_______ A v. 1929-38 1939 Barley ....................... 365 Corn ............................ 29,260 Cowpeas ..................... 1,0,16 O ats ............................ 7,833 Peanuts ..................... 100 Potatoes ..................... 312 Rice ............................ 163 Soybeans .................. 3,003 Sweetpotatoes ......... 221 Tam e H ay ................ 11,480 Tobacco ..................... 559 T o ta ls....................... 54,312 484 27,050 1,029 6,928 103 284 171 5,259 216 12,676 511 54,711 Indicated 1940 494 25,824 964 7,793 108 285 171 5,980 216 13,148 490 55,473 1940 per cent of 1939 102 95 94 112 105 100 100 114 100 104 96 101 Cotton—Preparations for the cotton crop are well advanced. M uch attention is being directed to con ditioning the soil and planting has progressed in some sections. T he soil is reported in excellent fer tile condition, but m any farm ers already comment on the need of m oisture. Fertilizer consum ption in states of the E ighth D istrict, according to the N ational Fertilizer Association, during the first quarter this year, as indicated by the sale of tax tags, was 20.4 per cent and 24.3 per cent larger, respectively, than during the comparable period a year and tw o years earlier. In the St. Louis m arket the m iddling grade of cotton ranged from 10c to 10.50c betw een M arch 15 and April 15, closing at 10.40c on the latter date, which compares with 10.25c on M arch 15 and 7.70c on April 15, 1939. T he final ginning report of the Bureau of the Census shows th at in states of the E ighth D istrict 3,897,032 equivalent 500-pound bales, exclusive of linters, had been ginned from the 1939 crop, com pared w ith 3,897,282 bales from the 1938 crop. Fruits and Vegetables— Indications are th at fruit and vegetable crops were not as seriously damaged by the cold wave during the latter part of M arch and early A pril as had been anticipated. Rains coupled w ith low ering tem peratures tended to affect adversely the developm ent of certain tree fruits throughout the district th at were in blossom. T he A rkansas straw berry crop, according to the U nited States D epartm ent of A griculture, will be about one-fourth sm aller this year than in 1939. Shipm ents will be a week to ten days later than usual because grow th and developm ent have been retarded by tem peratures below normal. T he con dition of M issouri straw berries on April 1 was re ported 49 per cent of norm al compared w ith 56 per cent on April 1 last year. M oisture conditions gen erally are satisfactory for the crop, but continued rains are needed. According to the A rkansas Federal-State crop reporting service, condition of peaches in that state on April 1 averaged 70 per cent of a full crop com pared with 87 per cent on April 1, 1939, and 53 per cent for the 10-year average. The cold weather brought a decided th reat to the crop, but reports from growers indicate it will not be reduced m ate rially on th at account. Livestock — T he num ber of cattle on feed for market, according to the U nited States D epartm ent of A griculture, in the eleven corn belt states on April 1 was about 2 per cent m ore than a year ago, and the largest for th at date in the last four years. The states of the E ighth D istrict included in this comparison were Illinois, 8 per c e n t; Indiana, 5 per cent, and Missouri, 5 per cent more than the same date last year. Because of the large increase in receipts of hogs at m arkets during the first three m onths of this year compared w ith the same period in 1939, it is indi cated the 1940 spring pig crop will be somewhat smaller than last year. D uring the period under review prices of hogs dropped to the lowest level in recent years. The U nited States D epartm ent of A griculture reports the spring season to date has been unfavor able for developm ent and grow th of the early lamb crop. Condition of the crop is reported below aver age and death losses relatively high, due to the cool w eather and lack of green feed. M arketings will be later than usual. Receipts and shipm ents at St. Louis as reported by the National Stock Y ards were as follows: Receipts________ Mar., 1940 Feb., 1940 Mar., 1939 _____ Shipm ents* Mar., 1940 Feb., 1940 M ar., 1939 26,440 20,269 28,663 Cattle and C alves. . . . . 81,711 71,065 84,943 90,534 96,462 60,133 H ogs ........................... . .249,419 243,896 218,725 3,118 3,069 2,747 2,788 Horses and M ules. . . . 3,277 2,099 3,812 4,432 2,134 . . 32,274 29,319 30,288 . ,366,681 346,379 337,025 121,855 123,331 96,346 ^Includes only stock shipped from yards for slaughter in other markets or to farms for feeding purposes. Tobacco — T he final formal reports for the 1939 season indicate net sales of 393,280,688 pounds of burley tobacco, averaging $17.39 per cwt. Of the 42 loose-leaf tobacco floor sales, 22 are in K entucky. Reports show the K entucky average was $17.73 per cwt., as compared w ith the $17.39 general average. T;he crop in the Green River and stem m ing dis trict totaled 18,828,525 pounds, and averaged $7.06 per cwt. The G row ers’ Co-operative A ssociation received about one-third of the crop. Growers are now preparing plant beds for the new crop. F inal Page 5 1939 yield of the one sucker crop reached 19,263,725 pounds, with an average price of $7.08 per cwt. Because of unfavorable weather, planting is not as advanced as usual. Sales reported to date in the dark fired m arkets aggregate 15,354,000 pounds, at an average price of $7.33 per cwt. Acreage of Burley tobacco to be planted in Ken tucky for 1940, according to the U nited States De partm ent of A griculture, will be 280,000 acres, com pared with 295,000 acres in 1939 and 10-year (19291938) average of 290,200 acres. Growers in this state will absorb 15,000 of the 25,900-acre cut in 1940 acreage. P lanting has been delayed by severe, abnormal w eather but is now under way with no alarm expressed by grow ers over the postponement. In Kentucky 1,600 acres of Henderson stemming dark fired tobacco will be planted, the same as last year, but a decrease of 4,090 acres from the 10-year average of 5,690 acres for this type. Plantings of Green River tobacco will about equal last year’s 18.000 acres, compared w ith the 10-year average of 25.000 acres. Acreage of one sucker tobacco will be 17.000 acres, compared w ith 17,200 acres in 1939 and 10-year average of 19,260 acres. W in te r W h e a t — The U nited States D epartm ent of A griculture, in its April 1 report, estimates pro duction of w inter w heat in states partly or entirely w ithin the E ighth D istrict at 85,721,000 bushels, against 103,642,000 bushels in 1939 and the 10-year (1929-1938) average of 100,916,000 bushels. Aboveaverage abandonm ent of acreage is reported. The crop was seeded under generally unfavorable condi tions last fall, largely due to dry, hot weather result ing in little grow th prior to the winter. The month of M arch was cool and the w heat developed slowly. Condition of the crop generally ranges from poor to fairly good. W heat stocks on farm s in Eighth D istrict states on April 1 totaled 9,112,000 bushels, against 12,300.000 bushels on the same date last year and 10year average of 12,070,000 bushels. Stocks of wheat under federal loan, according to the Commodity Credit Corporation, as of April 4, were 52,075 bushels on farms and 8,717,023 bushels in ware houses, for a total loan stock in the Eighth D istrict of 8,769,098 bushels. B U IL D IN G T he dollar value of perm its issued for new con struction in the five largest cities of the district in M arch was 58.2 per cent greater than in February and 53.1 per cent more than in March, 1939. Accord ing to statistics compiled by the F. W. Dodge Cor poration, construction contracts let in the Eighth Page 6 D istrict in M arch am ounted to $19,287,000, which compares with $15,411,000 in F ebruary and $18,696,000 in March, 1939. Building figures for March follow : N ew C onstruction R epairs, etc. (C o st in th o u san d s) P erm its 1940 19 39 35 42 140 494 311 1,022 578 320 L ittle R o c k . . . M ar. T o ta ls . . . Feb. “ Jan . “ 22 30 129 254 483 918 571 454 Cost 1940 1939 $ 105 132 673 1,129 786 2,825 1,786 1,398 P erm its 1940 1939 $ 68 38 229 302 1,208 1,845 2,517 1,758 120 95 42 201 176 634 453 254 40 147 67 221 193 668 365 443 1940, C ost 1939 $ 26 70 52 169 122 439 668 269 $ 52 43 45 276 124 540 256 331 C O M M O D ITY PR IC ES Range of prices in the St. Louis m arket between M arch 15 and April 15, 1940, w ith closing quota tions on the latter date and on April 15, 1939, follow s: Close H ig h Low $1.05 54 1.0454 1.0454 1.103/4 $ .9854 .96 •95*6 1.0454 “ “ “ “ .5 7 H .68 .5354 .533/4 •54*6 .58 .6554 •57*4 .5956 .60*6 .6854 .68 •435* .44*4 .4554 .4854 .52 “ “ “ “ .41 .3654 •33** .45 5-4 •3954 .3454 .3154 .4354 .407/8 .3 6 /2 .33*6 .45 .28*4 .2654 .26 .33 5.85 5.70 .100.0 4.85 6.25 @ 6.85 5.95 @ 6.20 .1040 5.39 3.90@ 5.25 5.25 @ 5.55 .0770 6.96 A pr. 15, 1940 A pr. 15, 1939 W h ea t * M a y ..................... * J u l y ...................... per bu. “ *S ep t...................... N o. 2 red w interr C orn * M a y ..................... “ * J u l y ...................... *S ep t...................... N o. 2 m ixed. . . N o. 2 w h ite. . . . O ats * M a y ..................... * J u l y ...................... “ .595* .60 H .68 y2 * S ep t...................... N o. 2 w h ite. . . . F lo u r , per bbl. Soft p a te n t. “ S pring “ ......... per lb. .p er cw t. *N om inal quotations. 6.85 6.20 .1050 5.39 $ 1.0554 1.04 54 1.0454 1 . 10*4 $ .65*6 .64*6 •64*6 .7654 C O N SU M PT IO N OF EL E C T R IC IT Y Public utilities companies in six large cities of the district report consum ption of electric current by selected industrial custom ers in M arch as being 10.8 per cent more than in February and 11.5 per cent greater than in March, 1939. Detailed figures follow : M ar., F eb., N o. of 1940 C usto m ■ 1940 (K .W .H . K .W .H . K .W .H . ers in th o u s.) 3,647 E v a n sv ille . . ___ 40 3,723 1,991 1,998 L ittle R ock. . . . . 35 9,762 . . . 82 9,657 2,540 , . , 31 2,553 1,078 P in e B lu ff. . .___ 20 688 . . . 221 26,308 21,546 40,564 . .. 4 2 9 44,927 M ar., M arch, 1940 com pared w ith 1939 K .W .H . F eb ., 1940 M ar., 1939 + 2.1% + 14.2% 3,261 — 0..9 2,016 + 0.4 8,492 + 13.7 — 1.1 + 0.5 + 14.3 2,234 — 36.2 — 13.6 796 + 22.1 + 11.9 23,508 + 11.5 40,307 + 1Q.8 PO ST A L R E C E IP T S R eturns for the five largest cities of the district show an increase of 3.4 per cent in combined postal receipts for the first three m onths this year over the corresponding period in 1939, and a decrease of 12.4 per cent under the final quarter of 1939. Detailed figures follow : Q u a rte r ending : M ar. 31, 1940 E van sv ille. . . L ittle R o c k . . . , $ ......... . . 186,430 239,748 728,273 695,287 2,726,300 4,576,038 M ar. 31, Comp, first Q trs. 1939 ’40 and ’39 Dec. 31, 1939 $ 202,823 246,0.22 849,013 870,703 3,055,954 5,224,515 $ 171,985 234,182 699,428 .683,296 2,636,135 4,425,026 + + + + + + 8.4% 2.4 4.1 1.8 3.4 3.4 B A N K IN G A N D F IN A N C E Developments in E ighth D istrict banking and finance reflected very little change during the past month, with demands for credit in the agricultural areas on the whole less than last year. Requirem ents for credit by m ercantile and m anufacturing inter ests, as indicated by loans at commercial banks, were less than a m onth earlier and som ew hat larger than a year ago. A ctivity in loans to millers and grain handlers was reported good w ith new loans ejqual to, if not slightly more than, pay offs. Member Banks — T otal loans and investm ents of reporting E ighth D istrict member banks, as of April 17, were 1.8 per cent more than on the same report date a m onth earlier. T otal loans decreased during the period 0.4 per cent and investm ents increased 3.6 per cent. However, total loans were 6.2 per cent larger than a year earlier and investm ents 1.9 per cent larger than on the earlier report date. The increase in the m onth-to-m onth comparison of total investm ents was due prim arily to increased hold ings of T reasury bills and U nited States bonds which increased 17.8 per cent and 4.7 per cent, respectively, during the period. Gross deposits were 0.5 per cent and 11.2 per cent larger, respectively, than on the corresponding dates a month and a year earlier. Reserve balances of reporting member banks declined sharply in M arch but turned upw ard during the first half of April. On April 17, they were still 3.6 per cent less than at mid-M arch, but 23.8 per cent larger than on the corresponding report date last year. Statem ent of the principal resource and liability items of the reporting member banks follows : C hange from A pr. 17, M ar. 20, A pr. 19, 1940 1940 1939 $188,842 — 2,641 + 4,182 Open m ark et p a p e r.............................................. 10,761 — 409 + 7,862 L oans to b rokers an d d e a le rs ......................... 4,395 — 947 — 1,017 O ther loans to p urchase an d c a riy secu rities. 279 12,470 + + 513 Real E s ta te lo a n s ................................................... 52,662 + 479 2,904 L oans to b a n k s ..................................................... 983 235 — 2,724 O th e r lo a n s.............................................................. 58,280 + 2,142 + 7,586 T rea su ry b ills ......................................................... 51,233 + 7,650 + 1 8 ,4 1 5 32,329 160 — 21,777 T iea su ry n o te s ....................................................... — 4,404 U. S. b o n d s.............................................................. 151,803 + 6,854 O bligations g u aran teed by U .S . G overnm ent 69,481 — 2,056 + 7,106 + 8,339 O th er secu rities....................................................... 107,290 + 2,069 1,139 + 4 8 ,2 4 9 B alances w ith dom estic b a n k s ......................... 191,068 + 3 4 ,3 8 1 D em and deposits— a d ju ste d * ............................ 477,129 + 2,044 + 1,051 744 Tim e d e p o sits......................................................... 190., 564 + — 3,206 16,918 216 U. S. G overnm ent d e p o sits.............................. + 7 3 ,6 5 4 In ter-b an k d e p o s its .............................................. 359,962 + 1,422 B o r r o w in g s ..................................................................................................... .............. * O th e r th a n in ter-b an k and G overnm ent deposits, less cash item s on h and o r in process of collection. A bove figutes are for 24 m em ber b an k s in S t. L ouis, Louisville, M em phis, L ittle R ock and E vansville. T h e ir resources com prise approxim ately 62.0% of the resources of all m em ber ban k s in th is d istrict. ( I n th o u san d s of d ollars) 4- The aggregate am ount of savings deposits held by selected m ember banks as of April 3 was slightly more than on M arch 6 , and 1.6 per cent more than on April 5, 1939. Interest rates at downtown St. Louis banks as of April 15 rem ained unchanged as follows: Custom ers’ prime commercial paper, 13A to 5H per cent; col lateral loans, 2 V* to 6 per c e n t; loans secured by warehouse receipts, 1M to 5% per cent and inter bank loans, 2JA to 5H per cent. Federal Reserve Operations — The volume of the major operations of the Federal Reserve Bank of St. Louis, during March, 1940, is indicated b elo w : (In cl. Louisville, M em phis, L ittle R ock b ra n c h es) Pieces A m ounts Checks (cash item s) h a n d le d ..............................;.5,824,832 $1,142,467,531 Collections (non-cash item s) h a n d le d ................ 132,273 30,822,023 T ransfers of fu n d s ....................................................... 4,617 323,250,230 C urrency received and c o u n te d ............................ 8,002,262 28,020,564 'Coin received and c o u n te d ..................................... 8,419,493 835,828 R ediscounts, advances and com m itm ents, .i. . . 7 188,742 New issues, redem ptions, and exchanges of securities as fiscal agent of U . S. G ov’t., etc. 24,20.6 105,690,843 Bills and securities in custody— coupons clipped 17,050 ................................ Changes in the principal assets and liabilities of A p r. 19, ( I n thousands of d ollars) 1940 In d u stria l advances un d er Sec. 13b......... $ 15 O th er advances and re d is c o u n ts................ 90 Bills b ought (including p a rtic ip a tio n s) . U . S. sec u rities.................................................... 113,101 113! 101 T otal earning a s s e ts .....................-.............. 113,206 393,320 309,370 192,882 In d u stria l com m itm ents u n d e r Sec. 1 3 b .. R atio of reserve deposit 180 78.1% C hange from M ar. 19, A pr. 19, 1940 1939 — -05 — 29 + 5 2 -0+ 2,070 — 11,073 + 2,041 — 11,075 — 15,007 — 11,889 + 451 + + + + 29 — 419 — 1.2% + 4.5% 63,092 41,008 13,661 Following are the rates of this bank for accom modations under the Federal Reserve A ct: A dvances to banks, secured by direct obligations of the U nited S tates, un d er p a ra g ra p h 13 of S ection 1 3 ..1 % per a nnum A dvances to m em ber banks, un d er p a ra g ra p h 8 of Sec tion 13, secured by direct obligations of the U n ited S tates or by such G overnm ent g u a ra n te ed o b lig a tions as are eligible for collateral th e re u n d e r.................. 1 % per annum R ediscounts and o th er advances tc> m em ber banks under Sections 13 and 1 3 a ......................................................... 1 /4 % p er annum A dvances to m em ber banks un d er Section 10 b .................. 2 % per annum A dvances to individuals, firms, and corporations, other th a n banks, secured by direct obligations of the U nited S tates, under p a ra g ra p h 13 of S ection 1 3 ........... 4 % per annum R ediscounts, purchases, and advances to m em ber banks, nonm em ber banks, and o th e r financing in s ti tutions, un d er Section 1 3 b : (a) O n portion for w hich such in stitu tio n is obligated 3 ^ % per annum (b) O n rem aining p o rtio n ............................................... . . 4 % p e r annum Com m itm ents, not exceeding 6 m onths, to m em ber banks, nonm em ber banks, and o th e r financing in sti tutions, to rediscount, purchase, o r m ake advances, under Section 13b......................... . .................................. y2 % flat A dvances to established in d u stria l or com m ercial 4 % to businesses u nder Section 13b. 5^% per annum Since March 15 the Scott County State Bank, Scottsburg, Indiana, and the Bank of Crane, Crane, Missouri, became members of the System. Debits to Individual Accounts — The following comparative table of debits to individual accounts reflects spending trends in this d istric t: M ar., 1940 ( I n thousands of dollars) A rk.$ 5,606 “ 12,705 “ 2,001 41,596 L ittle R o c k ,. . . . “ 8,109 Pine Bluff, . . . . “ 8,244 T exarkana, A rk. -Tex. E .S t.L -N a t.S .Y ..,. .111. 34,289 “ 8,838 Q uincy, ........... Evansville, . . . In d . 32,161 ..K y . 171,366 Louisville, 5,951 O w ensboro, . . . 5,720 . M iss. Greenville, Mo. 581,433 2,230 . . “ 14,537 Springfield, M em phis, ..........Tenn. 137,036 ____ 1 . ,071,822 F o rt Sm ith, . . . (Completed April 24, 1940) . M ar., 1939 Feb., 1940 $ 4,842 11,150 1,726 34,673 6,574 6,813 30,539 7,785 30,,065 153,137 6,669 5,328 518,317 2,282 12,967 126,431 959,298 $ 5,542 11,147 1,735 38,583 9,608 8,219 33,447 8,125 28,555 152,577 7,069 5,177 555,334 2,093 13,377 112,486 993,074 M ar.,’40 compi. w ith F e b .,’40 M ai-.,’39 + 15.8% + 13.9 + 15.9 + 20.0 + 2 3 .3 + 21.0 + 12.3 + 13.5 + 7.0 + 11.9 — 10.8 + 7.4 + 12.2 — 2.3 + 12.1 + 8.4 + 11.7 + 1.2% + :14.0 + 15.3 + . 7.8 15.6 + ' 0.3 2.5 + 8.8 + + 12.6 + ; 12.3 15.8 + 10.5 4.7 + 6.5 + 8.7 + + 21.8 7.9 + Page 7 N A TIO N A L SUMM ARY O F B U S IN E S S CO N D ITIO N S B Y B O A R D O F G O V E R N O R S O F F E D E R A L R E S E R V E S Y ST E M INDUSTRIAL PRODUCTION Index of physical volum e of production, adjusted for sea sonal variation, 1923-1925 average = 100. B y months, January, 1934, to March, 1940. L atest figure 103. FACTORY EMPLOYMENT Index of number employed, adjusted for seasonal varia tion, 1923-1925 average = 100. B y months, January, 1934, to March, 1940. INCOME PAYMENTS U . S. Departm ent of Commerce estim ates of the amount of income paym ents to individuals, adjusted for seasonal variation. B y months, January, 1934, to March, 1940. EXCESS RESERVES OF MEMBER BANKS W ednesday figures partly estimated, January 3, 1934, to April 10, 1940. Page 8 Industrial activity continued to decline during March but at a somewhat slower rate than in the preceding two months, and in the first half of April there was little further decrease. Wholesale prices of basic commodities decreased somewhat in the latter half of March but recovered by the middle of April. Distribution of commodities to domestic consumers continued in large volume, and exports were at the high levels reached last December. Production — The Board’s index of industrial production, which is adjusted for usual seasonal variations and for the number of working days, was 103 in March compared with 109 in February. The decline reflected chiefly a further reduction in output of steel and considerable decreases in activity at cotton and woolen textile mills. Steel ingot production declined from an average of 69 per cent of capacity in February to an average of 64 per cent in March. In the first half of April output was at around 61 per cent of capacity. Automobile production in March and the first half of April was maintained at the high rate prevailing during January and February but did not show the increase customary at this season. Retail sales of automobiles continued in large volume, and dealers’ stocks of new cars declined somewhat from the high level reached earlier. In the machinery industries activity showed some decline from the high rate of other recent months, while at aircraft factories and shipyards activity continued at peak levels. Output of lumber and plate glass advanced seasonally in March. In the woolen textile industry, where activity had been declining from the high level reached last November, there was a further sharp reduction in March. Activity at cotton textile mills also declined considerably but remained at a somewhat higher level than prevailed a year ago. Shoe production likewise declined considerably in March. At silk mills activity remained at an exceptionally low level, while rayon production was large. Mineral production was maintained in large volume in March. There was some further reduction in output of bituminous coal, but output of anthracite increased, following a sharp decline in February. Crude petroleum produc tion continued at record levels. Value of construction contracts awarded, as reported by the F. W. Dodge Corporation, increased considerably in March, as is usual at this season. The increase was principally in awards for private work, which in March approx imately equalled those in the corresponding period last year. Public awards increased somewhat, following declines in January and February, but were in smaller volume than a year ago. Private residential building rose by about the usual seasonal amount. Distribution — Sales of general merchandise at department and variety stores and by mail-order houses increased by about the usual seasonal amount from February to March, with allowance for the earlier date of Easter this year. In the first week of April sales at department stores were at a higher level than in March. Freight-car loadings showed little change from February to March, although a rise is usual between these months. Shipments of miscellaneous freight showed considerably less than the usual seasonal increase, and there was some further decline in loadings of coal. Foreign Trade — Exports of United States merchandise in March con tinued near the high level reached last December. Agricultural exports, principally cotton, decreased from February to March, while there were sub stantial increases in shipments of commercial vehicles and in metal working, agricultural, and other types of machinery. During March, the country’s monetary gold stock increased by $256,000,000. In the first two weeks of April the rate of gold inflow was accel erated, acquisitions in this period amounting to $145,000,000. Commodity Prices — Prices of a number of basic agricultural and industrial commodities, which had declined in the latter part of March, advanced during the second week in April. Prices of certain finished steel products, on the other hand, were reduced, and prices of most other com modities showed little change. Government Security Market — Prices of Treasury bonds moved sharply upward during March and the first few days of April to a new high level since last summer. On April 9, however, on receipt of news of the expansion of war activities in Europe, a decline of about one point occurred in long-term bonds. Subsequently the market recovered part of the loss. The yield on the 1960-65 Treasury bonds was 2.31 per cent on April 15, compared with a low of 2.26 per cent on April 2. Bank Credit — Reflecting continued heavy gold imports, excess reserves of member banks increased during the four weeks ending April 10 to a record high level of $5,950,000,000. Total loans and investments at banks in 101 leading cities, which had shown little net change during March, increased in the first two weeks of April, reflecting purchases of United States Government obligations.
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