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BUSINESS CONDITIONS
Monthly Review of Agriculture, Industry, Trade and Finance
Released for Publication in Morning Papers of April 30, 1941
FEDERAL
RESERVE
BANK
OF
ST.
LOUIS
H ERBERT G EORG
PHOTO
,
Aerial View of Fort de Chartres State Park Randolph County, Illinois
The Fort, seat of civil and military government in the Illinois Country for half a century, was first completed
in 1720. In 1753-56 it was rebuilt of stone and became one of the strongest forts in North America. Fort de
Chartres was occupied by a French garrison until 1765. It was the seat of British Government in the Illinois
Country until 1772. The site was made a State Park in 1913.
SUMMARY OF EIGHTH DISTRICT
April 1, 1941, comp, with
1940
Av. 1930-39
Agriculture:
Estimated production of winter wheat,. . . — 22 % — 17%
Mar., 1941 comp, with
Feb., 1941 Mar., 1940
Livestock:
Receipts at National Stock Yards....... . . . + 5% — 6%
— 22
Shipments from aforesaid Yards........ , — 17
Production and Distribution:
+ 29
Sales by mfrs. and wholesalers............ . . + 12
Department store sales........................... . . . + 34
+ 9
Car loadings............................................., . . + 18
+ 24
Building and Construction:
. + 49
+ IS
t .,
,
-x • t
Bldg. permits, incl. repairs |J Number.. . +214
^Qst
+ 10 2
Value construction contracts awarded.,..+ 2 7 7
+311
M iscellaneous:
+ 78
• + 14
Commercial failures { Liabilities
+515
+ 61
Consumption of electricity...................
+ 20
Debits to individual accounts............... , . . + 17
+ 21
Life insurance sales............................. .. . . + 13
+ 2
Apr. 16,’41 comp, with
Member Banks (24):
Mar. 19,’41 Apr. 17/40
Gross deposits....................................... . . . + 3% + 14%
Loans........................................................ • + 1
+ 19
Investments............................................... — 2
+ 11
E
IG H T H D istrict trade and industry during
March and the first half of April recorded
additional gains, and in virtually all lines
investigated volumes were m easurably higher than
at the corresponding period a year ago. D uring the
period several new high production records were
established, but taken as a whole specific increases
were not as m arked as has been the case in the pre
ceding several months, owing m ainly to the fact
that near-capacity production has been approxi
m ated in a num ber of im portant lines. Reflecting
steadily increasing volume of national defense re
quirem ents and noticeable expansion in civilian re
quirem ents for a broad variety of goods, new orders
in many im portant lines continued ahead of current
shipments, w ith the result th at backlogs of unfin
ished business rose to still higher levels. Steel in
got production at mills in this area was m aintained
at 99 per cent of capacity, and output of m anufac
tories of engines, machine tools, m achinery and
other heavy goods was at the highest rate of record.
Considerable progress has been made on a num ber
of im portant defense construction projects, and it is
expected th at shortly employment will shift from
construction of plants to those who will be engaged
in operating them. D uring January and February
the Arm y and Navy D epartm ents let m ajor con
tracts with an aggregate value of $101,070,323,
bringing to $500,953,323 the total of such contracts
placed since June 1, 1940. Since M arch 1, this
am ount has been considerably increased by orders
placed for a wide variety of goods by the several
Page 2
Government agencies. Reflecting the upsurge in
industrial activity, trade, transportation, and gains
in agricultural and other seasonal occupations, the
employment situation improved further.
As was the case in the entire country, production
of bitum inous coal at mines in this general area in
M arch increased sharply over both a m onth and a
year earlier, being stim ulated by efforts of con
sumers to stock up in anticipation of mine shut
downs. Lum ber output continued at recent high
levels, and according to trade reports, num erous
small southern mills which have not been active for
years have resum ed operations. New orders are still
substantially above production. As indicating the
high rate of industrial activity, consum ption of elec
tric current by industrial users in the principal
cities in M arch was 6 per cent greater than in Feb
ruary and 20 per cent above March, 1940. O utput
at lead and zinc mines in the district was at approx
im ately the same average rate as during January
and February, but considerably greater than a year
ago. A substantial rise in construction activities in
M arch is reflected in building perm its in the prin
cipal cities and construction contracts let.
As reflected in tonnage handled by transportation
companies and sales of retail and wholesale m er
chants, distribution of commodities in M arch and
early April reached new high levels on the present
upw ard movement, the usual seasonal factors con
sidered. Reports from both the large cities and
country indicate volume of E aster shopping ex
ceeded expectations. M arch sales of departm ent
stores in the large centers were about one-third
greater than in February and 9 per cent more than
a year ago. For the first quarter this year cum ula
tive sales were greater by 13 per cent than during
the same interval in 1940. In the four weeks ended
April 12, sales were 17 per cent above the corres
ponding period a year earlier. Combined sales of all
wholesaling and jobbing firms whose statistics are
available to this bank, were 12 per cent and 29 per
cent larger, respectively, than a m onth and a year
earlier. In the St. Louis area retail sales of auto
mobiles in M arch exceeded the high February
volume by 27 per cent and were 16 per cent greater
than in M arch, 1940.
Commercial failures in the E ighth Federal Re
serve D istrict in March, according to Dun and
B radstreet, num bered 48, involving liabilities of
$800,000, com paring w ith 42 insolvencies in Feb
ruary w ith liabilities of $497,000 and 27 defaults for
a total of $130,000 in March, 1940.
D E TA IL E D SU R VE Y OF DIST RI CT
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
Lines of Commodities
Data furnished by Bureau of Census,
U . S. D ept, of Commerce.
A utom otive S u p p lies..............................
Boots and S h o es.....................................
Drugs and C hem icals............................
Dry G oods................................................
Electrical Supplies................................
Furniture...................................................
G roceries.....................................................
H ardw are...................................................
Machinery, Equipment and Supplies
Plumbing Su pplies................................
Tobacco and its P rod u cts.....................
M iscellaneous...........................................
T otal all lin es............................................
N et Sales
Stocks
March, 1941
Mar. 31, 1941
comp, with
compared with
F eb.,’41 M ar.,’40 Mar. 31, 1940
+ 5%
+ 3
+ 2
+ 6
— 3
+33
+23
+ 12
+ 19
+ 42
+ 15
+ 15
+ 12
+ 26%
+ 28
+
7
+ 23
+ 109
+ 51
+ 15
+ 30
— 76
+ 15
+
9
+ 42
+ 29
............%
+ 6
+ 5
+ 98
— 17
+ 16
+ 34
+ 34
“ +17
+ 5
+ 10
Automobiles—Combined passenger car, truck and
taxicab production in the U nited States in March
totaled 507,868, as against 485,523 in February and
423,299 in March, 1940.
Iron and Steel Products — March and early April
were marked by further gains in virtually all sec
tions of the iron and steel industry in this area.
Owing, however, to the close approach to capacity
limits, increases were not m easurably as large as
during some recent months. This was true of steel
ingots, machinery, machine tools and certain other
commodities going into defense work. C ontrary to
conditions in other sections, there was relatively
little interruption to production in this district from
labor troubles. March deliveries of finished prod
ucts by mills, foundries, machine shops and other
ferrous metal w orking plants were the highest for
any m onth this year, and in numerous instances, the
largest of record. Despite this fact, backlogs of un
filled orders continued to m ount and delivery dates
were further extended by the mills. The leading
district m anufacturer of sheets, plates and other
flat rolled m aterial reports operations and unfilled
orders the largest in its history.
Purchasing by the railroads has broadened con
siderably. Orders for new freight cars placed in
M arch totaled 8,074 units, and during the first quar
ter this year the total was 28,751, comparing with
4,611 and 3,062 for the same period a year and two
years earlier, respectively. W ith mills under urgent
pressure to supply increasing needs of the defense
program , railroads and railroad equipment builders
are experiencing difficulty in obtaining adequate
supplies of materials. Demand for all descriptions
of building m aterials continued at the high rate
which has obtained in recent months. The move
m ent of repair m aterials to rural districts was re
ported less than usual at this season, owing to diver
sion of many items where more urgently required.
The melt of pig iron during March was the high
est for th at m onth of record. Blast furnaces are
rationing their customers, but up to this time there
have been few complaints of scarcity. The schedule
which establishes maximum prices on iron and
steel scrap was issued on April 3 by the Price Stabil
ization Division of the National Defense Advisory
Commission. The immediate reaction to this order
was considerable confusion in the trade, and fever
ish efforts on the part of sellers to complete deliv
eries on outstanding orders. As a result shipments
of scrap to melters increased markedly, particularly
from country dealers. Prices of pig iron and most
finished and semi-finished m aterials remained un
changed. As of mid-April, steel ingot production at
mills in this area was at the record rate of 99 per
cent of capacity, the same as a month earlier and
comparing w ith 45 per cent a year ago.
For the entire country March production of pig
iron, according to the magazine “Steel,” totaled
4,702,905 tons, the highest for any month of record,
and comparing with 4,206,826 tons in February and
3,270,575 tons in March, 1940. Steel ingot output
in the U nited States in March amounted to 7,146,372
tons, comparing w ith 6,250,413 tons in February
and 4,390,090 tons in March, 1940.
T R A N SP O R T A T IO N
F reight traffic of railroads operating in this dis
trict increased sharply during March and early
April, with total volume considerably greater than
during the same interval in any recent year. Com
pared with a year ago, all classes of freight showed
increases, but heaviest gains were in miscellaneous
freight, coal and forest products. The movement of
coal was stim ulated by heavy industrial consumer
specifications in anticipation of possible shutdowns
in the fields after April 1.
The St. Louis Term inal Railway Asssociation,
which handles interchanges for 28 connecting lines,
interchanged 104,955 loads in March, as against
89,123 loads in February and 84,595 loads in March,
1940. D uring the first nine days of April the inter
change am ounted to 29,566 loads, comparing with
29,994 loads during the same interval in March and
22,410 loads during the first nine days of April,
1940. For the entire country loadings of revenue
freight during the first 14 weeks this year, or to
April 5, totaled 10,065,603 cars, against 8,773,365
cars for the same period in 1940 and 8,083,203 cars
in 1939.
Estim ated tonnage of the Federal Barge Line
between St. Louis and New Orleans in March was
130,100 tons, comparing with 99,966 tons in Feb
ruary and 157,517 tons in March, 1940. For the first
Page 3
quarter this year cum ulative tonnage was 334,008
tons, as against 320,166 tons for the first three
m onths of 1940.
R E T A IL T R A D E
Department Stores — T he trend of retail trade in
the E ighth D istrict, as reflected in statistics of de
partm ent stores in the principal cities which report
to this bank, is shown in the following com parative
sta te m e n t:
Stocks
Stock
N et Sales
Turnover
on Hand
March, 1941
3 mos. ’41 Mar. 31,*41
Jan. 1, to
to same
comp, with
compared w ith
March 31,
F eb .,’41 M ar.,’40 period ’40 Mar. 31,’40 1941 1940
+28%
5%
.75
.66
Ft. Smith, A r k ...
+ 4%
+ 19
+26
9
- 0.95
.79
L ittle Rock, Ark.
+ 19
19
— 34
.74
.60
Pine Bluff, A rk..
+ 2
— 19
+ 19
+ 59
E. St. Louis, 111.
—6
+ '3
4-33
.93
.90
Quincy, 111............
— 4
Evansville, I n d .. .
4-61
+49
--3 2
+ ’2
1.15
+30
.93
Louisville, K y .. . .
— 7
1.06 1.06
St. Louis, Mo. . .
+31
+ 7
+ 7
+ 56
+ 39
— 48
.64
+56
.68
Springfield, M o. . .
— 39
Jackson, Tenn. . .
+ 57
+27
ii
— 11
+ ’8
.82
+24
Memphis, Tenn. .
+ 2
.76
*A11 Other Cities
+ 39
.67
— 5
+ 2
+ 1
8th F. R. D istrict
+34
12
1.00 .96
+ 7
+ .9
*E1 Dorado, Fayetteville, A r k .; Alton, Harrisburg, M ount Vernon,
111.; Vincennes, In d . ; D anville, Hopkinsville, K y .; Chillicothe, Mo.
Trading days: Mar., 1941— 26; Feb., 1941— 24; Mar., 1940— 26.
O utstanding orders of reporting stores at the end
of March, 1941, were 77 per cent greater than on
the corresponding date a year ago.
Percentage of accounts and notes receivable out
standing M arch 1, 1941, collected during M arch, by
c itie s:
Installm ent Excl. Instal.
Accounts
A ccounts
Installm ent E xcl. Instal.
Accounts
Accounts
Fort S m ith ..
Little R o c k ..
L ouisville . . .
Memphis . . . .
, .°/
15
22
25
41%
33
54
41
Quincy .......... .19%
St. L o u is .. . . 20
Other Cities . 16
8th F .R . D ist. 20
54%
56
45
50
Indexes of departm ent store sales and stocks, 8th
F. R. D istrict (1923-1925 averag e= 1 0 0 ):
Mar.,
1941
Feb.,
1941
Jan.,
1941
Mar.,
1940
97
81
80
Sales (daily average), U n ad ju sted ..................
100
Sales (daily average), Seasonally a d ju sted .. 107
94
72
62
Stocks, U nadjusted.................................................. 77
75
76
71
Trading days: Mar., 1941— 26; Feb., 1941— 24; Mar., 1940— 26.
91
92
72
70
Specialty Stores — M arch results in m en’s fur
nishings and boot and shoe lines are shown in the
following ta b le :
Stock
Stocks
N et Sales
March, 1941
3 mos. ’41
compared w ith
to same
F eb.,*41 M ar.,*40 period ’40
M en’s Furnishings.
B oots and S h o es. . .
+35% — 6
+-58
— 13
+
on Hand
Mar. 31,*41
comp, with
Mar. 31,’40
5%
T urnover
Jan. 1, to
March 31,
1941 1940
.64
.63
1.67 1.57
+ 2
Percentage of accounts and notes receivable out
standing M arch 1, 1941, collected during M arch;
M en’s F u rn ish ings.......................41 %
B oots and S h o es............................ 38%
M IN IN G A N D OIL
Coal—Reflecting a heavy buying m ovem ent am ong
industrial users during late F ebruary and through
March, in anticipation of a possible suspension of
mining operations after April 1, production of bitu
minous coal moved sharply upw ard during March.
Industrial consum ption continued at a high rate,
Page 4
and due to the unusually late spring demands for
heating purposes were extraordinarily heavy.
According to the Bitum inous Coal Division, U. S.
D epartm ent of the Interior, production of bitum i
nous coal for the entire country during M arch
totaled 48,250,000 tons, as against 41,695,000 tons
in F ebruary and 35,244,000 tons in M arch, 1940.
D uring the first quarter 134,015,000 tons were pro
duced, com paring w ith 119,497,000 tons for the same
period last year. A t mines in this general area, out
put in M arch was 15 per cent more than in the pre
ceding m onth and 37 per cent greater than in
M arch, 1940. Illinois mines produced 5,261,639 tons
in M arch, as against 4,548,601 tons in February and
3,916,956 tons in M arch, 1940.
Petroleum — F ebruary production of crude oil in
states of the E ighth D istrict was 11 per cent less
than in January and 17 per cent sm aller than in
February, 1940. Cum ulative total for the first tw o
m onths this year was 11 per cent below the corres
ponding period in 1940. Stocks on F ebruary 28
were 1 per cent less and 2 per cent larger, respec
tively, than a m onth and a year earlier. Detailed
production and stocks by states are given in the
following table:
Production
Feb.,
1941
Jan.,
1941
Feb.,
1940
A rkansas............ 1,950,
I llin o is .............. 9,069
Indian a ..............
574
K e n tu c k y .........
387
T o ta ls..............11,980
2,158
10,293
617
424
13,492
2,010
11,727
235
422
14,394
(I n thousands
of barrels)
Stocks
Cumulative
1941
1940
4,108
19,362
1,191
811
25,472
Feb. 28, Feb. 29,
1941
1940
4,108 1,889 1,934
23,227 14,557 13,630
428
2,973 3,664
8051,530 1,289
28,568 20,949 20,517
A G R IC U L T U R E
Combined receipts from the sale of principal farm
products and Governm ent benefit paym ents to farm
ers in states including the E ighth D istrict during
the period January-F ebruary, 1939, 1940 and 1941,
and during February, 1940 and 1941, are given in
the following ta b le :
(I n thousands
of dollars)
T ennessee . . . . . . .
February
1941
1940
$23,650
42,295
21,888
10,646
11,035
9,430
9,966
128,910
$19,592
44,918
16,739
13,148
10,048
10,980
9,925
125,350
Cumulative for 2 months
1941
1940
1939
$50,291
95,246
48,890
44,016
28,632
18,828
21,074
306,977
$ 47,865
102,762
45,262
44,811
22,180
20,829
18,894
302,603
$40,020
85,045
34,712
36,879
22,203
23,575
11,609
254,043
Farming Conditions — The spring survey of the
U. S. D epartm ent of A griculture indicates th at the
new season is startin g off w ith better than average
prospects. In the southern half of the country crops
and pastures are late, but in states of the E ighth
Federal Reserve D istrict, the lateness apparently is
not serious, and can be easily overcome w ith aver
age conditions from this tim e forward. D uring the
past several m onths precipitation has been light
from the Tennessee and M issouri river valleys
northw ard, but w inter m oisture in this area is not
ordinarily im portant except for hay crops and in
m ost sections late M arch and April rains have al
ready brought partial relief.
W inter w heat prospects are m ainly good, the
exception being in northern M issouri and portions
of adjoining areas, where considerable w inter wheat
was killed by cold w eather in Novem ber and the
land is being replanted in other grains. Stocks of
grain on farm s are large. Reserves of corn are
smaller than a year ago, but stocks of oats are much
larger because of heavy production in 1940. P ro
duction of milk per cow was outstandingly heavy
in April as in earlier m onths this year. E gg produc
tion per 100 hens was also exceptionally high dur
ing the early p art of the year. Average condition of
pastures in this district was about the same as last
year but 6 per cent below the 10-year (1930-1939)
April 1 average.
Surplus labor is rapidly disappearing from farm
ing areas near active industrial centers and some of
the part-tim e of subsistence type farm s may not be
actively worked this year. Present indications, how
ever, are that the total acreage in crops will be fully
m aintained and th at the num bers of milk cows, beef
cattle, sheep and chickens will be increased. The
trend of farm products prices was upw ard during
M arch and early April, and throughout the period
prices were m easurably above a year ago. As of
April 5, the farm products group of the Bureau of
Labor Statistics index stood at 72.7 per cent of the
1926 average, as against 70.4 per cent on M arch 1
and 67.0 per cent on April 6, 1940.
Cotton — Farm preparations for the new cotton
crop as of the first week of April were unusually
backward, in m any sections tw o weeks behind the
relatively late season last spring. The soil was too
w et and cold for the desired progress. Since April
1, however, farm ers have taken advantage of every
interval of favorable w eather and have pushed field
work. Num erous planters w ith tractors have equip
ped them w ith lights and plowed at night. Cover
crops are in the main doing well. Some planting
has been done in the extrem e lower tier of counties.
Loans made by the Commodity Credit Corpora
tion on 1940-1941 crop cotton through April 14 in
states of the E ighth D istrict, and repaym ents on
loans are as follows:
T
jrtariQ
(A m ounts
in thous.)
T otal Loans Repayments
Outstanding
Bales
A m ount
B ales Am ount
Bales Amount
A r k a n s a s ................128,369 $ 6,083
95,582 $4,554
32,787 $1,529
M ississip pi......... ....77,144
3,544
55,300
2,510
21,844
1,033
M issouri..................12,738
5929,013
417
3,725
175
T en nessee............... 15,095
7339,574
463
5,521
270.
T o ta ls .................. ....233,346 10,952
169,469
7,944
63,877
3,00.7
U . S. T o ta ls. . .3,152,859 151,839 1,179,186 56,565 1,973,673 95,274
T rading in spot cotton continued active, reflect
ing the high rate of consum ption at domestic mills.
According to trade reports miil activity in late
March and early April was at near-record levels.
W hile mill sales of cloth were not as high as here
tofore, backlogs of unfilled orders perm itted of sus
tained production. Mill prices for cloth and yarns
continued strong. In the St. Louis m arket middling
grade cotton ranged from 10.75c to 11.40c per pound
between M arch 15 and April 15, closing at 11.20c
on the latter date, which compares w ith 10.80c on
March 15 and 10.40c on April 15, 1940.
As indicating the heavy forw ard movement of
cotton, combined receipts at Arkansas and Missouri
compresses from A ugust 1, 1940, to April 18, 1941,
totaled 1,957,020 bales, as against 1,800,953 bales a
year earlier; shipm ents, 1,770,557 bales, against
1,992,802 bales. Stocks on hand as of April 18
amounted to 1,065,204 bales, com paring w ith 1,163,300 bales a year ago. According to the prelim inary
report of the Bureau of the Census, cotton ginned
from the 1940 crop in states of the E ighth D istrict
amounted to 3,664,171 bales, com paring with 3,901,098 bales in 1939 and 3,924,282 bales in 1938.
Fruits and Vegetables — Reports from virtually
all sections of the district indicate th at injury to
fruit trees from cold during the past w inter was
slight, and as of mid-April prospects for all species
ranged from good to excellent. In A rkansas, for
example, the condition of peaches on April 1 was
82 per cent of full crop promise, compared w ith 70
per cent a year earlier. A ccording to the U. S. A gri
cultural M arketing Service, straw berry production
in the second early states, including Tennessee arid
Arkansas, is expected to be unusually large, due
both to the high condition and heavier acreage.
Livestock — An im provem ent in demand for and
a greater supply of m ost classes of meat during
March than in F ebruary featured the livestock and
meat trade during the last month. M eat supplies,
with the exception of veal, also were somewhat
more plentiful this M arch than a year ago, and
greater than the average for M arch during the 10year period, 1931-1940. The increased supply of
meat resulted from heavier m arketings in M arch
compared w ith February. Livestock m arketings,
with the exception of lambs were not greatly dif
ferent from a year earlier. Lam b m arketings were
estimated at approxim ately 10 per cent higher than
last year.
The num ber of cattle on feed for m arket in the
Corn Belt States on April 1 was 16 per cent larger
than a year earlier, according to the A gricultural
M arketing Service. The num ber on feed was the
largest since the drouths of 1934 and 1936 reduced
Page 5
cattle feeding to the lowest level in recent years.
The movement of stocker and feeder cattle into
the Corn Belt in the first quarter this year was
probably the largest for this period in all years.
The estim ated num ber of cattle on feed April 1 in
Eighth D istrict states as a percentage of the num
ber April 1, 1940, is as follows: Indiana, 105; Illi
nois, 113; M issouri, 112.
Receipts and shipm ents at St. Louis as reported
by the National Stock Yards were as follows:
________ Receipts_______
Mar.,
Feb., Mar.,
1941
1941
1940
80,306 79,041 81,711
Cattle and C alves___
H o g s .................................. 242,622 229,778 249,419
H orses and M u les......... 2,113
2,273
3,277
21,128 20,015 32,274
S h eep................................
T o ta ls........................... 346,169 331,107 366,681
_______Shipments_______
Mar.,
Feb.,
Mar.,
1941
1941
1940
22,713 23,200 26,440
69,851 87,185 90,534
1,774
2,156
2,747
261
804
2,134
94,599 113,345 121,855
W inter W heat — Based on conditions as of April
1, the U. S. D epartm ent of Agriculture estimates
1941 production of w inter w heat in states including
the E ighth D istrict at 86,113,000 bushels, compar
ing w ith 112,368,000 bushels harvested in 1940 and
the 10-year (1930-1939) average of 104,203,000
bushels. W heat stocks on farms in these states on
April 1 am ounted to 12,519,000 bushels, against
9,415,000 bushels a year earlier and 10-year average
of 12,623,000 bushels.
CO M M O D ITY PRICES
Range of prices in the St. Louis market between
March 15 and April 15, 1941, with closing quotations
on the latter date and on April 15, 1940, follows:
H igh
W heat
* M a y .. ..
.per bu.
*July . . . .
*Sept......................
N o. 2 red winter
N o. 2 hard “
Corn
*M ay .....................
* J u ly .....................
*Sept......................
N o. 2 white . . .
Oats
*M ay .....................
* J u ly .....................
*Sept......................
Flour
Soft p a t e n t.. . . per bbl.
Spring “ ----M iddling Cotton per lb.
H ogs on H oof . .percw t.
*Nominal quotations.
Low
April 15,1941
Close
April 15, 1940
$ .: 9 ^
.8
.8 8 ^
.89/4
.96
.9 5 #
$ .8 3 #
.80
.8 0 ^
.90
.893#
.653/
.66
.6 6 #
.73
.6 0 ^
.6 0 #
.6 0 #
.6 8 #
.653#
.66
.38
.343/g
.33 5/8
•3 4 ^
•3 1 #
.3 0 #
.3 7 #
.3 4 #
6.20
5.30
.1140
8.82
5.05
4.60
.1075
7.69
$
.8 7 #
.88
.9 4 #
.9 2 #
.66#
.73
.33y8
5.30@6.20
4.85@5.30
. 1120.
8.66
1 .0 5 #
1.04 #
1 .0 4 #
1 .1 0 M
.5734
.59y
8
.60 H
.40^
.36#
.333/s
6.25@6.85
5.95@6.20
.1040
5.39
W H IS K E Y
B U IL D IN G
The dollar value of perm its issued for new con
struction in the five largest cities of the district in
M arch was 291 per cent greater than in February
and 115 per cent greater than in M arch, 1940. Ac
cording to statistics compiled by the F. W . Dodge
Corporation, construction contracts let in the Eighth
D istrict in M arch am ounted to $82,616,000, which
compares w ith $21,894,000 in February and $20,095,000 in M arch, 1940. Building figures for March
follow :
N ew Construction
Repairs, etc.
Permits
1941 1940
(C ost in
thousands)
E van sville.........
L ittle Rock
L o u is v ille .........
35
35
42
59
190
140
685
494
329
311
St. L ouis.
1,298 1,022
Feb.
578
849
* Includes a housing project.
Cost
1941
1940
$ 102
295
397
1,225
4,043*
6,062
1,552
$ 105
132
673
1,129
786
2,825
1,786
Permits
1941 1940
116
87
46
234
121
604
427
1941
120
95
42
201
176
634
453
C ost
1940
$ 61 $ 26
38
70
51
52
265
169
123
122
538' 439
553
668
C O N SU M PT IO N OF E L 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
6 per cent more than in February and 20 per cent
greater than in M arch, 1940. Detailed figures fol
low :
.68
As of M arch 31, 50 of the 61 distilleries in Ken
tucky were in operation, four less than were in
production on February 28. According to trade
sources the whiskey industry is operating at as high
a rate as possible under existing conditions. The
current high rate is in a large measure due to appre
hension that the m anufacture of whiskey may be
curtailed as nonessential and to conserve materials
for the national defense program .
T here is a continued shortage of white oak staves
for m aking whiskey barrels, and owing to shortage
Page 6
of labor, correction of the cooperage situation may
be deferred beyond recent expectations. Prices of
barrels have increased substantially and in some
instances distillers have been obliged to curtail pro
duction because of inadequate supplies.
A num ber of the larger whiskey m anufacturers,
it is reported, continue to purchase stocks produced
in preceding years in order to augm ent their inven
tories of specific production periods. This policy
has created a ready m arket for bulk whiskey and
the industry as a whole is reported in good condi
tion.
(K .W .H .
in thous.)
Mar.,
Feb.,
N o. of
Custom■ 1941
1941
ers
K .W .H . K .W .H .
Evansville. . . . . 40
L ittle R ock . , . . 35
.
L ouisville . . . . . 82
, . 31
Pine B luff. . , . , 20
. . . 125
. . 333
5,160
2,242
12,736
3,877
1,0,48
48,215
73,278
4,880
2,279
11,986
3,624
851
45,256
68,876
Mar.,
1940
K .W .H .
March, 1941
compared with
Feb., 1941 Mar., 194(
4,752
1,923
9,657
2,553
688
41,325
60,898
+ 6%
— 2
+ 6
+ 7
+23
+ 7
+ 6
b 9%
h 17
-32
-52
-52
-17
+20
P O ST A L R E C E IP T S
R eturns for the five largest cities of the district
show an increase of 4 per cent in combined postal
receipts for the first three m onths this year over the
corresponding period in 1940, and a decrease of 14
per cent under the final quarter of 1940. Detailed
figures follow :
Quarter ending : Mar. 31,
1941
$191,337
263,959
Little Rock
766,041
728,170
.2,813,421
St. Louis
,4,762,928
Dec. 31,
1940
$ 215,665
257,192
877,376
901,182
3,267,824
5,519,239
Mar. 31,
1940
$ 186,430
239,748
728,273
695,287
2,726,300
4,576,038
1941 and 1940
+ 3%
t 1?
±1
+
4
B A N K IN G A N D F IN A N C E
In the Eighth D istrict during the past th irty days
there was a further increase in demand for credit
from commercial and industrial interests. As has
been the case in recent m onths, requirem ents have
been more diversified than has been the case in a
num ber of years. M any custom ers who have not
been in the m arket for loans for m any m onths are
applying for funds. This is true particularly of m an
ufacturers. Retail interests in the large cities have
increased their borrow ings in order to expand inven
tories to accommodate heavier trade. According to
a num ber of bankers, financial requirem ents of in
terests supplying m aterials for the national defense
program are becoming more outstanding. Quite
generally throughout the district there is an active
demand for real estate and building loans, also to
finance building m aterials. Bankers in K entucky
report that the recent increased production of whis
key has resulted in a noticeable expansion in inquir
ies for funds to finance th at commodity. Interest
rates charged by commercial banks underw ent no
change w orthy of note.
M ember Banks — Reflecting continued expansion
in demand for credit, total loans of reporting mem
ber banks in the principal cities rose 1 per cent
between M arch 19 and April 16, and on the latter
date were approxim ately one-fifth greater than a
year ago. Investm ents, which had risen sharply in
the last week of March, declined slightly, but at
mid-April were still 11 per cent above the same
time in 1941. T otal reserve balances increased 14
per cent during the four-week period. Gross depos
its also advanced, and on April 16 were close to the
all-time peak reached on M arch 26.
Statem ent of the principal resource and liability
items of the reporting member banks follows :
(In thousands of dollars)
Apr. 16,
1941
Change from
Mar. 19, Apr. 17,
1941
1940
Commercial, industrial, agricultural lo a n s.$225,892 -f- 1,21*8
+ 3 7 ,0 5 0
Open market paper.............................................. 15,402 + 2,067
+ 4,641
Loans to brokers and dealers.........................
5,125 + 1,025
+
730
Other loans to purchase and carry securities. 11,844 —
595
—
626
60,198 +
646
+ 7,536
Real estate lo a n s..................................................
Loans to banks.......................................................
1,106 —
468
+
123
Other loans.............................................................
70,884 + 1,090
+ 1 2 ,6 0 4
Treasury b ills......................................................... 58,269 — 14,754
+ 7,036
Treasury n o tes.............................................. . . . .
36,631 — 5,037
+ 4,302
U . S. bon ds............................................................. 183,703 + 1 4 ,9 4 2
+ 3 1 ,9 0 0
Obligations guaranteed by U . S. Government 62,188 — 3,763
— 7,293
Other se c u r itie s....................... ............................. 116,736 + 1,242
+ 9,446
Balances w ith dom estic ban ks......................... 196,506 + 4,567
+ 5,438
Demand deposits — adjusted*......................... 554,811 + 1 9 ,9 5 0
+ 7 7 ,6 8 2
Time d e p o s its ......................................................... 192,729 +
195
+ 2,165
U . S. Government deposits................................ 14,344 + 2,878
— 2,574
Inter-bank d e p o s its .........................................
420,465 + 4,537
+ 6 0 ,5 0 3
*Other than interbank and Government deposits, less cash items on
hand or in process of collection.
A bove figures are for 24 member banks in St. Louis, Louisville, M em
phis, L ittle Rock and Evansville. Their resources comprise approximately
75% of the resources of all member banks in this district.
T he aggregate am ount of savings deposits held
by selected member banks on April 2 was 0.1 per
cent greater than a m onth earlier and 0.1 per cent
more than on April 3, 1940.
Federal Reserve Operations — The volume of the
m ajor operations of the Federal Reserve Bank of St.
Louis, during M arch, 1941, is indicated below :
(Incl. Louisville, Memphis, L ittle Rock branches)
Amounts
Pieces
Checks (cash items) han dled................................
5,908,255 $1,615,202,927
38,721,289
Collections (non-cash item s) handled................
144,0,57
442,476,871
Transfers of fu nds....................... .......................... . .
5,120
31,274,089
Currency received and counted..............................
9,617,116
915,529
Coin received and counted.......................................
9,291,609
190,250
Rediscounts, advances and com m itm ents............
7
New issues, redemptions, and exchanges of
156,628,613
securities as fiscal agent of U . S. Govt., etc.
33,171
Bills and securities in custody— coupons clipped 18,048
...............................
Changes in the principal assets and liabilities of
this bank appear in the following ta b le :
(In thousands of dollars)
Industrial advances under Sec. 1 3 b ...
Other advances and rediscounts............
U . S. securities..............................................
T otal earning a ssets................................
April 16,
1941
10.1.346
101.346
Total reserves.........................................................482,317
Total deposits.................. ......................................345,355
F. R. Notes in circulation.................. ........... ..234,850
Change from
March 18, April 19,
1940
1941
15
—
13 —
—
90
1,793 — 11,755
— 1,806 — 11,860
+ 2 7 ,4 9 4
+ 2 0 ,3 9 6
+ 6,769
+
+
+
88,997
35,985
41,968
95
+
Following are the rates of this bank for accom
modations under the Federal Reserve A ct:
275
Industrial commitments under Sec. 1 3 b ..
+
Advances ^to banks, secured by direct obligations of
_
the U nited States, under paragraph 13 o f section 1 3 .. 1 “ ) per annum
Advances to member banks, secured by direct obliga
tions of the U nited States or by such Government
guaranteed obligations as are eligible for collateral,
under paragraph 8 of section 13 .............................................. 1
i per annum
Rediscounts and other advances to member banks un
der sections 13 and 13a..............................................................1 % per annum
Advances to member banks under section 1 0 ( b ) ................ 2 % per annum
Advances to individuals, firms, and corporations, other
than banks secured by direct obligations of the
U nited States, under paragraph 13 of section 1 3 ............4 % per annum
Industrial advances to member banks, nonmember
banks, and other financing institutions under sec
tion 13b:
f i y 2 % to
(a) On portion for which such institution is obligated i 2 % per annum
(b) On remaining portion — N o charge to financ
ing institution. Federal Reserve Bank w ill
retain interest collected from borrower.
Advances to established industrial or commercial f z y 2 % to
businesses under section 13b................................................ < 5 y2 % per annum
Commitments to member banks, nonmember banks,
and other financing institutions, under section 1 3 b ... . . 1
Provided: that on commitments issued for periods of 90 days or less the
minimum charge shall be % of 1 % fla t; and further provided, that on
commitments for loans secured by assignm ent of “ Em ergency Plant Facil
ities Contract” with the U nited States Government, the rate may be as
low as
of 1% per annum.
Since the preceding issue of this review, the St.
Charles Savings Bank, St. Charles, Mo., and the
Elk H orn Bank and T ru st Co., Arkadelphia, Ark.,
became members of the Federal Reserve System.
Debits to Individual Accounts — The following
comparative table of debits to individual accounts
reflects spending trends in this d istric t:
(In thousands
of dollars)
Mar.,
1941
El D orado,. .
Fort S m ith ,..,
Ark.$
5,530
“
13,561
“
1,813
L ittle Rock, . . . . “
51,525
“
Pine Bluff, . ..
8,481
Texarkana, Ark.-Tex.
8,800
46,00,1
E .S t.L .-N at.S .Y .,Ill.
“
9,720
E vansville,. . .
39,838
Louisville, . .. . .. K y . 227,977
“
Owensboro, . .
6,540
Greenville,. . .
5,652
Mo. 670,400
2,278
“
17,711
Springfield,. ..
181,563
(Completed April 23, 1941)
..............1,297,390
Mar.,
1940
Feb.,
1941
$
5,194
12,921
1,425
43,874
7,889
8,406
39,870
8,436
33,177
195,781
6,218
5,813
555,934
2,256
16,510
164,090
1,107,794
$
Mar .,’41 comp, with
Feb .,’41 M ar.,’40
5,60,6
12,705
2,001
41,596
8,109
8,244
34,289
8,838
32,161
171,366
5,951
5,720
581,433
2,230
14,537
137,036
+
+
+
+
+
+
+
+
+
+
+
1,071,822
+
+
+
+
6%
5
27
17
8
5
15
15
20
16
5
3
21
1
7
11
— 1%
+ 7
— 9
+24
+ 5
+ 7
+ 34
+ 10
+24
+33
+ 10
— 1
+15
+ 2
+22
+32
+
17
+21
Page 7
IN D U S T R IA L
N A TIO N A L SUM M ARY O F CO ND ITIO NS
PRODUCTION
B Y B O A R D O F G O V E R N O R S O F F E D E R A L R E S E R V E SY ST E M
Industrial activity increased further in March but declined somewhat in
the first half of April owing to temporary reductions in output of bituminous
coal and automobiles. Wholesale prices of many commodities advanced con
siderably and the Government took steps to limit price advances of some
additional industrial materials.
Federal Reserve index of physical volume of production,
adjusted for seasonal variation, 1935-39 average = 100.
B y months, January, 1935, to March, 1941. Latest figure
143.
DEPARTMENT STORE SALES AND STOCKS
Production—Volume of industrial output continued to increase in March
and the Board’s seasonally adjusted index rose from 141 to 143 per cent of
the 1935-39 average. Activity increased further in most durable goods indus
tries, particularly in those producing machinery, aircraft, ships, and arma
ment. Steel production increased to about 100 per cent of rated capacity.
Automobile production, which usually increases considerably in March,
showed little change from the high rate reached in February. In the first half
of April output was reduced considerably owing to a shutdown at plants of
the Ford Motor Company during an industrial dispute which was settled about
the middle of the month. Retail sales of new and used cars advanced to new
peak levels in March and dealer’s stocks at the beginning of April amounted
to about a month’s supply at the current rate of sales. Output of lumber,
which had been sustained at unusually high levels during the winter months,
rose less than seasonally.
Activity in the textile and shoe industries increased further in March.
Cotton consumption rose to a record level of 854,000 bales and there was
also an increase in rayon deliveries. At wool textile mills activity was sus
tained at the peak rate reached in February, not showing the usual large sea
sonal decline, and in the chemical and rubber industries further advances
were reported. Bituminous coal production rose considerably, while output
of crude petroleum was maintained in March at about the rate that had pre
vailed in the four preceding months. In the first half of April coal produc
tion declined sharply, however, as most mines were closed pending conclusion
of contract negotiations between mine operators and the miners’ union. Pro
duction of nonferrous metals continued in large volume in March and deliv
eries of refined copper showed a sharp rise as domestic production was
supplemented by supplies received from South America.
Federal Reserve indexes of value of sales and stocks,
adjusted for seasonal variation, 1923-25 average = 100.
B y months, January, 1935, to March, 1941.
WHOLESALE
PRICES
Construction contract awards rose sharply in March and were larger
than in any month since the middle of 1930, according to the F. W. Dodge
Corporation data. The rise was chiefly in awards for publicly-financed work,
which had been reduced considerably in January and February, and in private
nonresidential projects, particularly factory construction. Awards for pri
vate residential building, which had been unusually large during the winter
months, showed less than the customary seasonal rise in March.
Distribution — In March distribution of commodities to consumers was
sustained at the high level reached in February. Sales at mail-order houses
and department stores increased seasonally and variety store sales showed
more than the usual seasonal rise. Freight-card loadings increased by about
the usual seasonal amount. Loadings of coal and grain rose considerably,
while shipments of miscellaneous freight, which in previous months had risen
steadily, on a seasonally adjusted basis, showed a smaller increase than is
usual at this time of year.
1935
1936
1937
1938
1939
1940
1941
Bureau of Labor Statistics’ indexes, 1926 = 100. “ Other”
includes commodities other than farm products and foods.
B y weeks, January, 5, 1935, to week ending April 12, 1941.
MEMBER BANKS IN 101 LEADING CITIES
Commodity Prices — Prices of basic commodities continued to advance
sharply from the middle of March to the middle of April. There were sub
stantial increases in prices of domestic foodstuffs and further advances in
burlap, cotton, rubber, and lead. Increases were also reported in wholesale
prices of a number of manufactured products and the general index of the
Bureau of Labor Statistics rose two points to 83 per cent of the 1926 average.
Informal action was taken by the Government to discourage price in
creases of some additional industrial materials and maximum price schedules
were established for steel, bituminous coal, secondary and scrap aluminum
and zinc, and iron and steel scrap. Sharp reduction in prices of some kinds
of nonferrous metal scrap resulted. Announcement of an expanded Federal
purchase program for hog, dairy, and poultry products was followed by
price increases for these and related products.
Bank Credit — Total loans and investments at reporting member banks
in 101 cities increased during March and the first two weeks of April. Com
mercial loans continued to rise substantially, and holdings of United States
Government securities increased further, reflecting purchases of new
Treasury offerings.
W ednesday figures, January 2, 1935, to April 9, 1941.
Commercial loans, which include industrial and agricul
tural loans, represent prior to May 19, 1937, so-called
“ Other loans” as then reported.
Page 8
United States Government Security Prices — Prices of United States
Government securities declined irregularly from March 15 to April 9, but
subsequently rose slightly. The 1960-65 bonds showed a net loss of about
% of 1 point on April 15, following a rise of about 3*/4 points in the previous
month. The yield on this issue on April 15 was 2.14 per cent, compared with
2.03 per cent at the all-time peak in prices on December 10, and 2.30 per
cent at the recent low in prices on February 15,
@FedFRASER