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ITIONS BUSINESS Trade and Finance Monthly Review of Agr cu\ Released for Publication FEDERAL RESERVE 'apers of August 2,1943 BANK OF ST. LOUIS J , H, D O N A H V l P H O T O Beaut i f u I 0 h i o G EN E R A L IN D U ST R IA L SIT U A T IO N H E R E are indications that the peak in indus trial output in this nation is being approached. For the past three months output of munitions in the United States has been at a level approxi mately 5*A times that in our last peacetime month. In April the W ar Production Board’s index of muni tions production (Novem ber, 1941 = 100) reached 563. In May it remained at the same level. W hile aircraft production rose 5 per cent and fighting ships built increased 2 per cent, ground ordnance dropped 3 per cent and miscellaneous munitions fell 7 per cent. Even merchant shipbuilding Avas off 4 per cent. The final report for June is not yet available but pre liminary indications are that output did not increase appreciably over May. Inasmuch as war production this year is scheduled to rise steadily month after month it is evident that stability actually means that the program is falling more and more behind schedule. The major factor in the sidewise move ment of munitions manufacture is stated to be changes in types of needed war materials so that an upward movement of the index may be expected in com ing months as the new types become more standardized. Since gains in total industrial production for some time have been the result solely of expanding war output which has more than offset declining civilian goods manufacture, the stabilizing of war produc tion has leveled off the Board of Governors index of industrial production. For the past three months the seasonally adjusted index has remained at 203 per cent of the 1935-39 average. Output of durable goods rose slightly in the past month, non-durables manufacture remained steady, and production of minerals declined due largely to the coal strike. Despite the lack of gain in munitions output in June, Treasury expenditures for war in that month rose 4 per cent over May to reach $7.7 billion or an average daily rate of close to $296 million. Presum ably the rise in expenditures reflects an expanding army and navy, increased purchases of non-munition supplies, and advances to manufacturers. During fiscal 1943 the Government spent more than $75 billion for war purposes, or 2.7 times as much as in T fiscal 1942. In this district industrial activity in June was maintained at about the same level as in May but was well above the comparable month a year ago. Output of war materials was indicated to be up slightly from a month earlier, despite lay-offs at some ordnance plants due primarily to shifts in national programming. Over-all employment at war plants continued to gain, largely at the expense of less-essential industry. This is in contrast to re ports from other sections that munitions manufac turers are losing labor as a result of inductions and a back-to-the-farm movement. Consumption of industrial electric power at major Eighth Dis trict cities was up 8 per cent over May and was 24 per cent greater than a year ago. In June, production of steel was maintained at slightly above rated capacity. Industrial alcohol output declined slightly with one less distillery in operation. Output of lumber at district mills was slightly less than in May and continued below the level of a year earlier. Coal production declined 19 per cent in the month due mostly to the coal strike which shut down most mines for a short period, and was 15 per cent below June, 1942. Movement of freight in the district in June was in appreciably smaller volume than in May, partly as a result of the coal strike, but also reflecting the later movement of crops this year. Carloadings of all railroads operating in the district for the four weeks ending June 26 were 4 per cent less than in May, and in Louisville were down 8 per cent. As compared with a year ago, carloadings were down 8 per cent. Loads interchanged at St. Louis were down 3 per cent in the year and at Louisville, down 9 per cent. The drop in carloadings from June, 1942, overstates the actual decline in the volume of freight movement in the two periods, however, since cars are loaded much more heavily now and travel longer distances. Construction activity in the district continued to decline in June, Dollar value of construction con tracts awarded was down 23 per cent from May and was 90 per cent below a year ago. Building permits in the major cities of the district dropped 38 per cent in the month and w'ere 73 per cent below fune, 1942. D E T A IL E D S U R V E Y OF D IS T R IC T The current levelling off of the rise in the cost of After showing pronounced increases for the past living is due in part to the Government’s program three months, the index of the cost of living in June of rollbacks of retail prices on meats and butter showed little change from May and there are indi and to seasonal declines in prices of certain fresh cations of a continued levelling off since that time. vegetables and fruits. The June index does not re C O S T O F L IV IN G Page 2 fleet the rollback of meat prices which went into effect toward the end of the month. The major factor in the increase in the cost of living in recent months has been rising food costs, but in June the cost of food in the United States declined 0.8 per cent. While application of rollbacks and subsidies for certain food items should,result in at least a temporary stabilization of the cost of liv ing index at approximately May or June levels, the high level of consumer income continues to exert pressure against retail prices. According to the latest estimates of the Depart ment of Commerce, income payments to individuals are running at an annual rate of $134 billion. This represents an increase of 26.5 per cent from the cor responding period of last year. The major factor continuing to increase consumer incomes is the rise in wages and salaries. As compared with September, 1939, the cost of living has advanced 24.1 per cent. Since January, 1941, the base date for calculating wage increases under the “Little Steel” formula, the cost of living has increased 23.9 per cent, and since September, 1942, has risen by 5.9 per cent. From September, 1939, to May, 1943, average hourly earn ings in manufacturing have increased 51.8 per cent and from January, 1941, the increase has amounted to 39.5 per cent. Even since September, 1942, the date of the stabilization order, the rise in hourly earnings has amounted to 6.8 per cent, reflecting higher wages that have been authorized, higher pay resulting from more overtime, and upgrading that has been going on throughout industry. Since Sep tember, 1942, average weekly earnings have in creased 14.0 per cent. The increase in average week ly earnings has amounted to 80.0 per cent since the outbreak of war and 61.7 per cent since January, 1941. In St. Louis the index of living costs in June was 0.4 per cent lower than in May and 22.7 per cent above January, 1941. In Memphis, which is covered only quarterly by the index, cost of living advanced 27.1 per cent between December, 1940 and June, 1943. Food costs in all Eighth District cities declined slightly in the month ending at mid-June. The lar gest decrease in the month, 1.4 per cent, was in Louisville, while St. Louis registered a drop of only 1.0 per cent. As measured against a year ago, food costs in Memphis were up 19.5 per cent to lead all district cities in percentage rise. MANUFACTURING Steel— Production of steel ingots and castings in the St. Louis district continued slightly above rated capacity for the month ending July 12. While some furnaces in other sections were forced down by the third coal strike, mills and foundries in this district appear to have been little affected and inventories of coking coal were generally maintained at about normal levels. Scrap movement in the St. Louis area during the past month has been in somewhat better volume than in the preceding month, but labor shortages in scrap yards still retard, to some extent, the'process ing of collected scrap. Mill and foundry scrap in ventories are, however, considerably longer than they were in the comparable period last year, run ning approximately three weeks supply on the aver age. Pig iron supply in the district continues to be in adequate volume. Blast furnaces in the St. Louis area are supplying considerable hot metal to neigh boring mills. According to the American Iron and Steel Insti tute, ingot production in June in the United States was 7,027,000 tons, down more than 500,000 tons from May output and but slightly above production in June, 1942. The June tonnage was the smallest since June, .1942, except for the short month of Feb ruary. In the first half of this year, ste^l ingot out put totaled 43,867,000 tons. In the comparable period in 1942, it was 42,536,000 tons. The gain for the second quarter of 1943 over 1942 was, however, considerably smaller than the first quarter gain. Whiskey -— On June 30, 53 of the 60 Kentucky distilleries were in operation, one less than a month earlier, but four more than were in production a year ago. All distilleries continue to produce alco hol for the government program. On July 10, the W at Production Board prohibited the use of corn in the manufacture of distilled spirits and high wines in order to conserve corn stocks. Inasmuch as most liquor producers were already using wheat rather than corn, the actual saving of corn is expected to be small. Demand for whiskey continues very strong with scarcity of available bottled goods reported. Dealers and distributors continue to ration the amount of whiskey available for distribution in order to retain customers and to maintain advertised brands. RETAIL TRADE Department, store sales in the Eighth District in June rose 4 per cent over May and were 29 per cent above June, 1942. Part of the gain from a year ag"o reflects higher prices in the form of more expensive lines of merchandise handled, but most of the increase results from the heavy pressure of increasing consumer income. Sales increases from last June in the war-busy cities of Evansville, Page 3 Memphis, and Little Rock were almost matched by gains in other* less industrially active Eighth District cities. St. Louis and Louisville registered the smallest rises as compared with a year ago among the major cities. In the first six months of 1943 district department store sales were 16 per cent above the corresponding period in 1942. The strongest consumer demand for goods has come in the clothing field, particularly in women's apparel. At department stores, increases over a year ago in women's clothing were 47 per cent while at apparel stores June sales were 41 per cent greater than in June, 1942. Fears of rationing of clothing items probably contributed in some measure to the gain in sales. However, the War Production Board announced at mid-July that it hoped that no rationing of clothing would be neces sary for the duration ot the war. To prevent ration ing W . P. B. asked for greater production of textiles, orderly and adequate distribution, and consumer cooperation in buying only to till needs. Sales at reporting iurniture stores in the district in June dropped o per cent from May levels but were 30 per cent above a year ago. At department stores, sales of house furnishings declined 2 per cent in the month but were 20 per cent above a year earlier. Both department and furniture stores stocks in June were well below levels of June, 1942, as mer chandise shortages plus heavy consumer purchases kept inventory levels relatively low. Furniture store stocks dropped b per cent from May to June and department store stocks decreased 1 per cent in the month. AGRICULTURE General Farming Conditions — During June and early July in most sections of the Eighth District weather was generally favorable for crop develop ment and cultivation. Much of the damage wrought by the cold, wet spring and the May floods has been counteracted but crop prospects are still consider ably below what they were a year ago. Only scat tered small areas in the district are rated as having good to excellent prospects and almost as much territory is listed as being poor or very poor. The outlook for most of the district is only fair. Total United States crop acreage on July 1, 1943, was about 2 per cent more than was harvested last year, and the Department of Agriculture estimates that crop production this year should be 14 per cent above the ten-year (1932-41) average. This is con siderably less than the record production of last year which was 26 per cent above the average. In the Eighth District, acreage planted to ten major Page 4 crops is about 3 per cent greater than 1942 har vested acreage. Production in the district, however, of eight major crops is estimated at present as 9 per cent below a year ago. Farm employment in the United States on July 1 totaled almost 12 million, a drop of 2 per cent from a year ago, according to the U. S. Department of Agriculture. On June 1, farm wage rates were up 37 per cent from a year ago and stood at 251 per cent of the 1910-14 average. A survey made by the Department of Agriculture indicates that on the average, farm operators were working about 13 hours per day on June 1. The number of women working on farms at mid-1943 was 27 per cent of total farm employment as compared with only 14 per cent fifteen months earlier. In Eighth District states the number of women working on farms varied from 20 per cent of the total in Illinois to 36 per cent in Arkansas. Last year the range in the district was from 8 to 18 per cent. Considerably more children under 14 were working in the fields in 1943 than a year earlier. As compared with the United States average of 13 per cent of all farm employment, the range in Eighth District states was from 8 per cent of the total in Illinois and In diana to 24 per cent in Mississippi. Reports from various sections of the district indicate that some soldiers are being used for farm work and that a sizable number of war prisoners may be utilized in the harvest period. With these aids plus some workers recruited through the land army program, it is anticipated that there will be no general larm labor shortage in this district during 1943 although some localities are faced with shortages at present. Agricultural prices in the United States rose 3 points in the month ending June lo, with price in creases in grains, poultry, eggs, fruits and vege tables more than offsetting declines in dairy pro duct and meat animal prices. The parity index at mid-June was 116 per cent as costs ot goods bought by farmers rose less rapidly than did farm prices. In Eighth District states farm prices were generally steady to higher in June. In the northern sections declining livestock and dairy product prices caused a general decrease in the price index, but in the south average prices were higher. Cash farm income in Eighth District states in May totaled $288,267,000 or 41 per cent above in come in May, 1942. For the first five months of this year, cash farm income in this district ran 34 per cent above the comparable period last year. Cotton— In its first report for 1943, the U. S. Department of Agriculture estimates cotton acreage in cultivation on July 1 in the United States at 21,995,000 as compared with 23,302,000 in 1942 and the ten-year (1932-41) average of 29,508,000. The decrease in acreage from a year ago is almost 6 per cent. The lessened acreage has resulted^ in the re cent abandonment of cotton marketing quotas this y ear, l ’ jj In Eighth District cotton states, acreage in culti vation on July 1 totaled 5,495,000, 2 per cent less than the 5,610,000 in 1942. The ten-year average acreage in district states totals 6,754,000, Missis sippi is the only state in the nation that shows an increase in cultivated acreage from a year ago. Most of this increase is in the Delta counties which specialize in long staple cotton. Decreases from a year ago in other Eighth District states were as follows: Tennessee, 1 per cent; Arkansas, 5 per cent; Missouri, 12 per cent. On the whole, the cotton crop in the district is reported as being in good condition and generally on time. Some localities, particularly ill Arkansas and Missouri, which were badly flooded, report the crop somewhat spotted and relatively late. Over most of the district, however, stands are good, plants are healthy, and fields are well cultivated. Thus, at present, good yields appear in prospect. Activity was quite slow on the Memphis Spot Market throughout late June and early July. Mill inquiries were light and continued to be concen trated in the better grades and longer staples. • Prices of cotton were steady. That of 15/16 middling cotton ranged from 20.60c per pound to 21.05c per pound between June 16 and July 15, closing on the latter date at 20.60c per pound. A year ago, the range was from 18.70c per pound to 20.10c per pound. Fruits and Vegetables — More favorable weather during June and early July improved the outlook for fruits and vegetables in most parts of the Eighth District. However, due to losses already suffered from the adverse weather of early spring, it is anti cipated that output of most fruit and truck crops will be less than in 1942. For the United States, deciduous fruit output in 1943 is estimated at 12 per cent less than in 1942, while truck crop produc tion for the fresh market is expected to be off 11 per cent. Acreage of vegetables for processing is up slightly. Grain and Feed Crops— In the first 1943 estimate of the Department of Agriculture, Eighth District output of corn this year is indicated at 327,490,000 bushels as compared with 392,856,000 bushels in 1942 and the ten-year (1932-41) average of 303,227,- 000 bushels. The decline in production of corn is due to an indicated drop in yield. Corn acreage in the district is some 6 per cent above a year ago. Output of winter wheat in this area in 1943 is estimated at 28,773,CKX) bushels, up 23 per cent from the 23,358,000 bushels harvested last year, but down 48 per cent from the ten-year average of 55,021,000 bushels. Illinois, Indiana, and Missouri winter wheat production in 1943 is indicated to be much greater than the poor harvest of last year. District oat production is estimated at 73,032,000 bushels in 1943. This is 4 per cent under the 76,402,000 bushels produced last year, but 55 per cent above the tenyear average of 47,016,000 bushels. Tame hay pro duction is expected to be 8,559,000 tons as compared with 9,327,000 tons in 1942 and the ten-year average of 6,229,000 tons. The rice crop in Arkansas is indicated at 14,040,000 bushels, up 4 per cent from last year’s produc tion and 63 per cent from the ten-year average harvest. The rice crop is developing well and yields are expected to be above those of 1942. Stands are good and insect damage has been relatively light. More rainfall would be beneficial, however. Livestock — Livestock production in the United States is at an all time high. The spring pig crop numbers 74 million, or 22 per cent more than a year ago. The number of sows farrowed for the fall crop is 25 per cent greater than last year despite War Food Administration advice to increase fall farrowings only 15 per cent. The U. S. Department of Agriculture estimates that the total 1943 pig crop will be 127 million head, or 21 per cent greater than last year. In Eighth District states the spring pig crop was but 15 per cent greater than last year’s while the increase over last year in farrowing for fall was 21 per cent; Cattle numbers in the United States are also at an all time high with close to 80 million head on farms at present. Receipts of cattle and calves at National Stock Yards in June increased 4 per cent over May but were 29 per cent less than a year earlier. June hog receipts were up 13 and 22 per cent, respectively, over a month and a year ago. The increase in marketings probably is due in large part to the growing seriousness of the feed situation. Federal inspected slaughter in St. Louis in June although up from May was 8 per cent less than a year ago. Inspected hog slaughter was up 10 per cent over the year but this gain was more than offset by a 48 per cent decline in cattle and calf killings and a 37 per cent drop in lamb slaughter. Livestock prices declined during the month to re lieve somewhat the squeeze on slaughterers’ proPage 5 cessitig margins. Average hog prices at East St. Louis between June 16 and July 15 ranged from ^t3.38 per cwt. to $14.14 per cwt., closing on the latter date at $13.78 per cwt. Tobacco—According to the U. S. Department of Agriculture, production of all types of tobacco in the Eighth District in 1943 is estimated at 267,154,000 pounds, 109 per cent above the 1942 harvest of 242.243.000 pounds. Burley tobacco acreage in the district is up about 15 per cent this year, while most other types grown in the district show acre age increases of between 4 and 5 per cent. EMPLOYMENT Non-agricultural employment in the Eighth Dis trict, after declining seasonally in the first part of the year, has for the past three months registered gains and is approaching again the peak of last December. Major war plants in the district and those industries that are primarily engaged in war manufacture are increasing employment rather steadily from month to month on the average, al though there have been instances of employment dfops at certain ordnance plants as the program of military supplies changes. Much of the gain in over all employment in war industries continues to be offset by declines in less essential work. According to estimates derived from the most recent figures of tlie Bureau of Labor Statistics, non-agricultural em ployment in the Eighth District in April was 2,571,000 as compared with 2,620,000 last December and 2.042.000 in June, 1940, at the start of the defense program. BANKING AND FINANCE Demand for bank credit in the Eighth District in June continued the decline which has been evident since our entry into the war. In agricultural com munities the decrease has been particularly pro nounced and reflects the very strong cash position of the farmer arising from good 1942 crops and high farm prices. At 24 reporting member banks located in the major cities of the district, total loan volume dropped less than 1 per cent between June 16 and July 14 with a decline of 2 per cent occurring in commercial, industrial, and agricultural loans. Secur ity loans and other loans showed a rise in the month. As measured against a year ago, total loan volume was off 13 per cent with virtually all of the decline due to decreasing commercial, industrial, and agri cultural loans. "Investments at reporting member banks rose 2 per cent in the month and were more than double the volume of a year earlier. All types of direct obligations of the U. S. Government were held in considerably greater volume than a year earlier. Page 6 C ASH F A R M IN C O M E .Cumulative for 5 months _________ ^ ay 1942 1943 1943 1942 1941 (I n thousands o f dollars) A rk a n s a s ..................$21,538 I llin o is ......................97,563 Indiana......................57,434 K e n tu ck y ..................19,736 M ississipp i............. .18,692 M isso u ri...................52,347 Tennessee............... ..20,957 $19,700. 72,505 41,091 13,397 8,890 35,870 13,402 $ 88,925 438,628 248,579 135,869 70,80.7 222,832 103,801 $ 74,004 344,309 186,755 88,421 46,568 164,354 73,399 $ 41,180 230,003 121.787 62,933 32,053 109,688 50,144 T o ta ls ....................288,267 204,855 1,309,441 977,810 647.788 R E C E IP T S A N D S H IP M E N T S A T N A T IO N A L S T O C K Y A R D S Receipts Shipments June, 1943 M ay, 1943 June, 1942 Cattle and C alves......... 87,474 84,286 123,403 H o g s ................................. 331,699 293,250 271,147 Horses and M u le s ___. 2,982 2,042 1,706 S h e e p ................................. 65,O il 46,263 97,872 T o t a l s . . . ...................... 487,166 425,841 492,128 M ay, June, 1943 4 1943 June, 1942 50,766 80,989 2,918 14,545 51,680 53,592 1,478 30,629 48,951 64,331 2,014 13,212 149,218 128,508 137,379 W H O L E S A L E P R IC E S IN T H E U N IT E D S T A T E S Bureau o f Labor Statistics June, M ay, June, J une/43 com p, with (1926= 100.) 1943 1943 1942 M a y /4 3 June/42 104.1 125.7 110.5 96.7 A ll Com m odities. . 103.8 Farm Products . 126.2 F o o d s ............... . 109.6 , 96.8 Bureau o f Labor Statistics (1 9 3 5 -3 9 = 1 0 0 ) 98.6 104.4 99.3 95.6 CO ST O F L IV IN G June 15, M ay 15, Sept. 15, 1943 1943 1939 .United S ta te s .. . . St. L o u i s ......... M em phis........... *N ot available. 124.8 123.6 127.0 Bureau c f Labor Statistics (1 93 5 -3 9 = 1 0 0 ) June 15, 1943 U . S. (51 c it ie s ).. St. L o u is ........... L ittle R o c k . . . . L o u is v ille ......... M em phis........... . . . . . 125.1 124.1 COST O F FO O D M ay 11, June 15, 1943 1942 — 0.2% — 0.4 + 5.3% + 2 0 .9 + 10.4 + 1.3 + + + 24.1% 23.1 26.5 June 15/43 com p, with M ay 11/43 June 15/42 123.2 125.9 123.3 123.2 124:1 143.0 144.7 141.8 141.5 150.1 0.3% 0.4 0.8 0.1 June 15/43 com p, with M ay 15/43 Sept. 15/39 100.6 100.4 100.4 4 141.9 143.3 140..1 139.5 148.3 — + — + — — — — — 0.8% 1.0 1.2 1.4 1.2 + 15.2% + 13.8 + 13.6 + 1 3 .2 + 19.5 IN D E X E S O F E M P L O Y M E N T IN M A N U F A C T U R IN G IN D U S T R IE S B Y M E T R O P O L IT A N A R E A S Bureau o f L abor A p r., M ay, M a y /43 com p, with M ay, Statistics M a y /42 1943 1943 1942 A p r./4 3 (1 9 3 7 = 1 0 0 ) E v a n s v ille ............., . 230.8 , , 128.1 , , 152.6 225.1 127.6 150.4 151.9 78.1 100.9 120.2 132.0 + + + + B U I L D I N G P E R M IT S N ew Construction (C ost in thousands) E vansville. . . . Little R o c k .. . L ouisville . . . . N um ber 1943 1942 9* 18 31 113 58 3 10 58 142 182 229* June T o t a l s .. . M ay “ 327 * Includes conversions. 395 413 Cost 1943 1942 $ Repairs, etc. N um ber 1943 1942 22* $ 5 7 9 60 122 200 129 53 1,538 342* 743 1,803 950 + 195.5% + 27.0 + 27.0 + 16.8 2.5% 0.4 1.5 1.5 448 114 42 321 177 1,102 1,160 Cost 1943 1942 112 $ 60 96 16 41 . 19 177 98 192 ___98 $ 45 30 218 82 152 291 280 527 384 618 763 V A L U E C O N S T R U C T IO N C O N T R A C T S L E T ( I n thousands Tune,’ 43 com p, with o f dollars) June,*43 M ay,’ 43 J u n e /42 M a y /4 3 June/42 T otal 8th D ist. $ 10.,511 $ 13,705* $101,687 S o u rce : F . W . D od g e C orporation. *Revised. (K .W .H . in thous.) — 2 3% — 90% C O N S U M P T IO N O F E L E C T R I C I T Y N o. o f June, M ay, June, June, 1943 Custohi- 1943 1943 1942 com pared with ers4 K .W .H * K .W .H . K .W .H . M ay, 1943 June, 1942 E v a n s v i l l e .... 40 Little R ock . . . 35 L ou isville......... 82 M e m p h is ......... 31 Pine B luff . . . . 20 St. L o u is ......... 134 10,618 2,469 15,621 6,130 6,682 95,171 10*281 2,122 15,549 6,381 6,477 86,236** 3,807 2,944 16,037 5,052 811 81,491** T o ta ls ..........3 4 2 136,691 127,046** 110,142** *Selected industrial custom ers. **R evised. + 3% +16 -0 — 4 + 3 +10 + + 8 +179% — 16 — 3 + 21 +724 17 + 24 L O A D S I N T E R C H A N G E D F O R 25 R A I L R O A D S A T ST. L O U I S First nine days Ju n e/43 M a y /4 3 June/42 J u ly /4 3 J u ly /4 2 6 m os./4 3 6 m os./4 2 145,625 141,279 147,736 44,90.6 41,802 S o u rce : Term inal Railroad A ssociation o f St. Louis. 850,852 797,365 W H O L E S A L IN G Lines o f Commodities N et Sales Data furnished b y Bureau o f Census, U . S. D ept, o f Commerce. Plum bing S u p p lie s ................................ T ob a cco and its P rod u cts.................... * Includes certain lines not listed above. + + + + + + + + + 4% 4 8 14 25 3 15 6 23 19 2 9 ....% + + + + - 9% 18 25 47 22 15 21 27 20 b 16 - 22 - 2 D E PA RTM EN T STORES 6 m os/4 3 to same period *42 •— 31 — 35 —ii — 24 — 17 .... — 52 — 32 Stocks on H and S tock Turnover June 30/43 com p, with June 3 0 /4 2 Jan. 1, to June 30, 1943 1942 N et Sales June, 1943 compared with M ay, 1943 June,*42 June 30,1943 com p, with June 30, 1942 June, 1943 compared with M a y,*43 June,’42 _ A utom otive S u p p lie s .. D rugs and Chem icals. D ry G o o d s .................... Electrical Supplies . . . Stocks t 4% 1.98 1.60 Ft. Smith, A rk. + 13% + 4 1 % +31% 11 2.24 1.68 L ittle R ock, “ -36 -10 +40 2.86P 2.37P Q uincy, 111. . . . — IP + 33P 9P + 16P +47 Evansville, Ind. + 4 -- 4 8 1*79 2.7 & Louisville, K y .. 36 + 18 +28 2.16 1.62 32 12 — 24 St. Louis, M o .. + 7 1.22 +26 2.06 Springfield, M o. — 6 27 --4 0 2.32 1.46 Memphis, Tenn. — 6 -41 +32 12 12 *A11 other cities — 2 -13 2.19 1.65 11 -2 9P 2.26P 1.62P 8th F. R. Dist. + 4P — 24P + 16P *E1 Dorado,, Fayetteville, Pine B luff, A r k ; A lton, East St. L ouis, H arrisburg, M t. Vernon, 111.; Vincennes, I n d .; Danville, H opkinsville, Mayfield, Paducah, K y . ; Chillicothe, M o .; Jackson, Tenn. Trading d a ys: June, 1943— 2 6 ; M ay, 1943— 2 5 ; June, 1942— 26. Outstanding orders o f reporting stores at the end o f June, 1943, were 259 per cent greater than on the corresponding date a year ago. Percentage o f accounts and notes receivable outstanding June 1, 1943, collected during June, by citie s : Instalment E xcl. Instal. Instalment E xcl. Instal. A ccoun ts A ccounts v A ccoun ts A ccoun ts + + F ort S m it h .. . . . % 63% L ittle R ock . . 19 57 L o u i s v i l l e .... 32 63 M em phis . . . . 37 58 P— Preliminary figures. 72% 68 67P St, L o u i s ------33% O ther cities . . 30 8th F .R . Dist. 30P IN D E X E S O P D E PA R TM E N T STO R E SALES A N D STOCKS 8th Federal Reserve District (1923-1925 average = f 100) June, M ay, A pril, June, 1943 1943 1943 1942 Sales (daily average), U nadju sted.................... Sales (daily average), Seasonally a d ju s t e d ... Stocks, U nadju sted.................................................. Stocks, Seasonally adjusted................................. 132 143 94 98 S P E C IA L T Y ST O R E S 6 m os/4 3 to same period *42 99 c+ . Stocks on H and C4 . Stock Turnover June 30/43 com p, with June 3 0 /4 2 Jan. 1, to June 30, 1943 1942 N et Sales June, 1943 com pared with M ay, 1943 Ju n e/42 129 136 129129 108 9592 126 9490 132 M en’ s Furnishings + 2 0 % + 2 5 % + 5% — 49% 1.82 1.52 B oots and S h oes. . + 2 8 -0 — 2 — 31 4.64 3.78 Percentage o f accounts and notes receivable outstanding June 1, 1943, collected during J iin e: B oots and S hoes........................... 53 % M en’s Furnishings...................... 63 % C H A N G E S IN P R IN C IP A L A SS E T S A N D L I A B I L I T I E S F E D E R A L R E S E R V E B A N K O F ST. L O U IS Change from July 14, June 16, July 15, (I n thousands of dollars) 1943 1943 1942 Industrial advances under Sec. 13b. Other advances and rediscounts____ U . S. securities........................................ $ Total earning a s s e ts ................................... F. R.- Notes in circulation.................. ......... 50 354,472 — 50 — 35,135 8 340 + 197,951 354,522 — 35,185 + 197,603 717,061 485,377 , 590,972 Industrial commitments under Sec. 1 3 b .. 1,617 + + + 91,247 35,887 17,450 — 202 h 60,942 - 48,802 -216,685 — 580 F E D E R A L R E S E R V E O P E R A T I O N S D U R I N G J U N E , 1943 (In cl. Louisville, Mem phis, Little R ock branches) Pieces A m ounts Cheeks (cash items) handled............................... Collections (non-cash item s) handled............... Transfers o f fu n ds.................................................... Currency received and cou n ted .................... .... Coin received and cou nted ..................................... R ediscounts, advances and com m itm en ts......... N ew issues, redemptions, and exchange of securities as fiscal agent of U . S. G ovt,, etc. Coupons clipped from securities in c u s t o d y ... 6,666,379 149,547 5,082 13,595,250 12,995,210 24 $2,541,273,044 53.886.265 659,988,093 63.714.266 1,165,758 84,400,000 711,292 28,859 574,578,738 R A T E S O F T H IS B A N K F O R A C C O M M O D A T IO N S U N D E R T H E F E D E R A L RESER VE ACT Advances to member banks, secured b y direct obliga tions o f the U nited States o r b y such Governm ent guaranteed obligations as are eligible for collateral, which have one year or less to run to call date or to m aturity if no call date, under paragraphs 8 and 13 o f section 13........................................................................... V* % per annum A dvances to m ember banks, secured by direct ob liga tions o f the U nited States o r b y such Governm ent guaranteed obligations as are eligible for collateral, which have more than one year to run to call date or to maturity if no call date, under paragraphs 8 and 13 o f section 13.................................................................. 1 % per annum Advances to nonmember banks, secured b y direct o b ligations o f the U nited States, under paragraph 13 1 % per annum o f section 13............................................................................. Rediscounts and other advances to m ember banks un der sections 13 and 13a............................................................1 % per annum Advances to m ember banks under section 1 0 ( b ) ................1^4% per annum A dvances to individuals, partnerships, and corporations other than banks, secured by direct obligations o f the United States, under paragraph 13 o f section 13— 2 % per annum Industrial advances to member banks, nonmember banks, and other financing institutions under sec tion 1 3 b : t f 1 % to (a ) O n portion for which such institution is obligated I 1 % per annum (b ) On remaining p ortion— N o charge to financ ing institution. Federal Reserve Bank will retain interest collected from borrower. Advances to established industrial or com m ercial [2 J 4 % to businesses under section 1 3 b .. . . ........................................I 5 % per annum Commitments to established industrial or commercial businesses under section 13b............................................ ...... 10% to 2 5 % o f the loan rate charged borrow er with a minimum rate o f 5^ % per annum. Commitments to member banks, nonmember banks, and other financing institutions, under section 13b ................10% to 2 5% o f the loan rate charged borrow er with minimum rate o f J4 % per annum p rov id ed : that no commitment will be given on loan o n which b o r rower is charged over 5 % per annum. P R IN C IP A L R E S O U R C E A N D L I A B I L I T Y IT E M S O F R E P O R T IN G M E M B E R B A N K S Change from July 14, June 16, July 15, (I n thousands o f dollars) 1943 1943 1942 T otal loans and investm ents.................... $1,439,459 + 17,655 + 39 8 ,6 0 8 Commercial, industrial, agricultural loans* 201,780 — 3,710 — 47,095 L oans to brokers and dealers in securities 675 + 4,664 + 966 Other loans to purchase and carry securities 10,150 + 369 1,472 Real estate loans............................................ 66,191 — 24 5,461 Loans to ban ks.............................................. 480 + 155 393 Other lo a n s ...................................................... 59,273 + 231 — 10,847 T otal loans........... ....................................... 342^38 — 1,20.1 — 50,753 Treasury b ills................................................... 114,391 — 34,429 + 48,812 Certificates o f indebteness........................... 219,634 1,888 + 150,078 Treasury notes................................................. 142,973 + 33,382 + 78,62® U . S. b o n d s..................................................... 468,503 + 21,153 + 1 7 2 ,8 8 3 O bligations guaranteed by U . S. G o v t.. 35,671 + 1,683 + 1,847 O ther securities.............................................. 115,749 — 4,821 — 2,$79 T otal in v estm en ts........................ ............. 1,096,921 + 18,856 + 449,361 116,300 — Balances with domestic ban ks.................. 3,381 — 33,318 Dem and deposits— a d justed **.................. 887,860 + 38,409 + 1 9 2 ,0 3 3 T im e deposits................................................... 205,169 + 4,038 + 20,918 U . S. Government d ep osits........................ 167,919 + 8,568 + 119,666 Interbank d e p o s it s ........................................ 493,765 — 24,679 + 51,30.8 •Includes open market paper. * * Other than interbank and Governm ent deposits, less cash items on hand or in process o f collection. A bov e figures are for 24 m ember Hanks in St. L ouis, L ouisville, M em phis, Little R ock and Evansville. T heir resources com prise approxim ately 75% o f the resources o f all member banks in this district. + ( I n thousands o f dollars) D E B IT S T O I N D I V I D U A L A C C O U N T S M ay, June, June, June/43 com p, with 1943 1943 1942 M a y /4 3 J une/42 10,765 19,430 3,279 62,091 Little R ock, . . . ti Pine B lu ff........... 14,013 Texarkana, Ark. -T ex. 15,599 12*382 A lto n ,.................. ..111. 75,604 E .St. L.-N at.S.'l “ “ 15,844 Q u in cy,............. 81,449 E vansville,......... .. K y . 328,918 13,451 O w ensboro, . . . “ 8,368 6,632 Greenville.......... . Miss. 4,845 Cape Girardeau, ..M o . 4,118 H annibal,. . . . . . . . “ 16,277 Jefferson C ity ,. . . . “ 952,285 5,744 “ 29,068 S p rin g fie ld ,----8,032 Tenn. ** 228,785 E l D orado......... A rk.$ “ f o r t S m ith,-----€4 .. . . . . . 1,916,979 $ 11,709 18,218 3,358 65,140 15,784 14,006 10,961 70,718 14,225 82,356 294,555 11,881 7,310 7,367 3,942 3,655 19,125 1,118,965 5,310 28,696 7,648 216,749 $ 8,062 17,527 2,858 61,211 20,679 22,189 13,411 76,234 13,904 54,754 275,181 10,117 9,158 5,610 4,251 3,870. 16,135 876,519 4,554 23,832 7,137 189,951 2,031,678 1,717,144 __ + — — + + + + + + + + + — + + + + — 8% 7 2 5 11 11 13 7 11 1 12 13 14 10 23 13 15 15 8 1 5 6 6 + + + + — — — + + + + + + + + + + + + + + 34% 11 IS 1 32 30 8 1 14 49 20 33 9 18 14 6 1 9 26 22 13 20 12 C O M M E R C IA L F A I L U R E S I N E I G H T H F . R . D I S T R I C T Ju n e/43 com p, with J une/43 M a y /4 3 J u n e/42 M a y /4 3 J u n e/42 N u m b e r ............. 4 L iabilities........... $132,000 S o u rce : D un and Bradstreet. (Completed July 26, 1943) 10 $ 62,000 20 $166,0.00 — 60% +113 — 80% —20 Pag« 7 INDUSTRIAL PRODUCTION N A T IO N A L S U M M A R Y OF CONDITIONS BY 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 SE R V E SYSTEM Manufacturing activity was maintained at a high level- in June while mineral production declined reflecting mainly reduced output o f coal. In the early part o f July coal production was resumed in large volume. The value o f retail trade continued large. Federal Reserve indexes. Groups are expressed in terms of points in the total index. M onthly figures, latest shown are for June, 1943. Industrial production— The Board’s seasonally adjusted index o f total industrial production declined slightly in June from the high level o f other recent months. Activity continued to increase at plants producing war products in the chemical, rubber, and transportation equipment industries. These increases were more than offset by a sharp drop in coal production and a temporary reduction in output o f coke, pig iron, and steel. Finished aircraft production, in terms o f airframe weight, was 3 per cent higher in June than in May. Delivery o f supplies for the Army ground forces rose 1 per cent over May. Tonnage o f cargo vessels; delivered from merchant shipyards was not up to the record May' level; it was, however, higher than in any other month. CONSTRUCTION CONTRACTS AWARDED In industries manufacturing nondurable goods output as a whole showed little change from May t® June. Activity at cotton mills declined — con sumption o f 917,000 bales o f cotton was 50,000 less than in June, 1942. Output at coal mines in June was 30 per cent below May due to the work stoppages, but early in July both anthracite and bituminus coal production recovered to above the levels prevailing a year ago. Crude petroleum pro duction was maintained in June and moved upward in July partly in anti' cipation o f the completion o f the pipeline from Texas to the East Coast. Lake shipments of iron ore in June were 6 per cent below the same month last year due to unfavorable weather conditions. F. W . D odge data for 37 Eastern states, total includes state and local governm ent and private nonresidential building not shown separately. M onthly figures, latest shown are for June, 1943. MEMBER BANK RESERVES AND RELATED ITEMS The volume o f construction contracts awarded in June was about the same as in May. The value o f awards in June was at the lowest level for this month since 1936, according to the F. W . Dodge Corporation. Distribution— Value o f consumer nondurable goods sold at retail was in near-record volume in June and the early part o f July, while sales o f dur able goods, many o f which are becoming increasingly scarce, were generally below previous peak levels. Car loadings o f revenue freight declined in June, reflecting the drop in coal shipments. Loadings of grain showed the usual increase at this season and the movement o f most other commodities was maintained in large volume. Commodity prices—Wholesale prices o f most commodities showed little change in the early part o f July, following a decline during June o f 1 per cent in the general index. This decline reflected chiefly reductions ordered in maximum prices o f butter and meat and seasonal decreases in prices of fresh fruits and vegetables. 1936 1939 1940 1941 1942 1943 W ednesday figures, latest shown are for July 14, 1943. MEMBER BANK RESERVES Agriculture— Aggregate crop production this year is expected to be 10 per cent smaller than last year but 5 per cent above the average o f the pre ceding 5 years, according to the July 1 official report. O f the major crops, production prospects for grains are the lowest compared with last season, while there are indications o f considerably larger harvests for dry beans and peas, flaxseed, and potatoes. Output o f livestock products has con tinued in larger volume than a year ago. Bank credit— During June and the first three weeks o f July tljere was an increase o f about *1,4 billion dollars in Reserve Bank holdings o f United States Government securities. Continued currency outflow, and increase in required reserves due to the growth o f deposits, were reflected in the in creased demand for Reserve Bank credit. The expansion in Reserve Bank credit was in the form o f Treasury bills sold by member banks to the Federal Reserve Banks under options, to repurchase. Holdings o f bills showed wide fluctuations during the period as member banks adjusted iheir reserve positions through sales and repurchases. A large part o f the Treasury bills came from New York City banks where excess reserves continued to be low. Total loans and investments o f New York City banks have declined recently. Other reporting member banks have shown a con* tinued growth in deposits and U. S. Government securities. Breakdown between required and excess reserves partly estimated. W ednesday figures, latest shown are for July 14, 1943. Page 8 The quarterly report o f customer rates at commercial banks for the middle o f June showed a further rise in rates charged on loans by large banks throughout the country.
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