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FEDERAL RESERVE BANK OF ST. LOUIS MONTHLY REVIEW OF BU SIN ESS CONDITIONS IN FEDERAL RESERVE DISTRICT N o. 8 Released for Publication On and After the Morning of August 30, 1924 W I L L I A M M cC. M A R T IN CHAIRMAN OF THE BOARD AND FEDERAL RESERVE AGENT E P O R T S covering general business conditions in this district during the past thirty days re flect marked improvement in sentiment arid a greater degree of confidence in the near future than at any time since early spring. The chief factor in the more hopeful psychology has been the radical turn for the better in agricultural prospects and the rela tively high prices being paid for cereals, live stock and other farm products. The improvement in the physical aspect of important crops, particularly corn and wheat, as contrasted with conditions early in the grow ing season, has been quite phenomenal, and has served to lift a considerable part of the gloom exist ing in the agricultural communities. Other influences favorably affecting sentiment have been the halt in recent price reductions of certain important com m o dities, more seasonable weather, and the continued strength of the banking and financial situation. Results of the better feeling pervading business, while not universally felt, are being manifested in the form of broadened activities in many lines, particu larly those dealing in goods for ordinary consumption. Retail merchants in both city and country are pur chasing in larger quantities and taking more diversi fied assortments. A s has been the case for many months past, buying continues chiefly on a basis of immediate requirements, but the number o f current orders is large, and bulks impressively in the aggre gate. Since the first of this month there has been some relaxation from the policy of purchasing only for immediate shipment, and bookings of future orders by the dry goods, boot and shoe, grocery, and hard ware interests exhibit fair gains. Progress in the direction of bringing production and consumption into nearer balance, noted in the preceding issue of this report, was carried further during the period under review. T he curtailed indus trial activity during the spring and early summer resulted in considerably reduced stocks of certain com modities in manufacturers’ hands, and in a number of instances current output has fallen below the rate of distribution. Since the first of this month opera tions at many plants have been increased, and prepa rations were being made to broaden activities still further. Another developmenet w orthy of comment was the change in price trends which has worked to bring into closer relationship the values of various groups of commodities. In this m ovement the rise in prices of farm products was a particularly notable factor. D uring July the employment situation showed no decided changes as compared with the month before. Some surplus of labor developed in the larger cities, noticeable particularly am ong iron and steel workers, and in the furniture and textile industries. T he urgent call for men in the harvest fields, according to the R Employment Service of the Department of Labor, materially aided in reducing idleness, as did the resumption of improvement work on the waterways, which had previously been interfered with by high water. Lead and zinc mining showed renewed activ ity, due to the sharp advance in prices of ore and the refined metals. In the coal fields, however, produc tion continues at a low ebb, and employment condi tions were no better than during earlier months this year. Reports relative to the building industry re flected some uneveness. In some localities there was an overplus of both skilled artisans and com m on labor, while elsewhere full employment was the rule. Large numbers of men were added to highway con struction forces, weather generally being auspicious for pushing this class of work. The demand for cleri cal help was slightly better. W hile fluctuating widely, prices of cereals were well sustained during the period under review, and new highs for the year were established on both wheat and corn. Between July 15 and August 15, the Sep tember wheat option in the St. Louis market ranged from $1.19 to $1.33^ , and No. 2 red winter wheat from $1.35 to $1.47 per bushel. The closing price of September wheat on A ugust 15 was $1.29^4, which contrasts with $1.01^ on the corresponding date in 1923. The rise on corn was steady, the Decem ber option advancing from 85c on July 15 to $1.20 on August 15, the latter price comparing with 62% c on the same date in 1923. There was a sharp advance in live stock during the closing week of July, hog prices reaching the highest point touched since July, 1922. Cattle and sheep values were also higher, with fat lambs recovering a good part of their recent losses. M iddling cotton in the St. Louis market fluctuated between 28c and Z0y2c per pound, with the minor figure of the spread recorded on August 15. Aside from a slightly better undertone and halt in the downturn in prices, the coal situation shows little change from the conditions of extreme dullness which have prevailed for many months. Consumers of all classes appear to have faith in the ability of mines to produce and the railroads to deliver fuel when needed, and are reluctant to purchase for their distant requirements. The quantity of coal stored in householders’ bins is the smallest at this particular season in more than a decade. Dealers, as a conse quence, are contracting sparingly and declare they will continue this policy until the intentions of their customers are more definitely known. In the im m e diate past there has been some improvement in de mand for steaming coal from the principal Illinois and Indiana fields. Memphis and Louisville coal dis tributors report July business slightly better than in June, but still much below normal. Despite slack business Arkansas dealers made the regular retail advance of 50c per ton on A ugust 1. Production of soft coal during the first 188 w orking days of the calendar year, or to August 9, totaled 269,684,000 net tons, against 332,386,000 tons for the corresponding period in 1923, 218,120,000 tons in 1922, and 354,663,000 tons in 1918. A cute dullness of the market remained the principal feature in reports from the mines and was responsible for losses in w orking time, beside which other losses were of little consequence. Freight traffic handled during July by railroads operating in this district was substantially augmented by the heavy movement of grain and, in the case of several Northwestern roads, was in excess of the same month last year. Reports from leading grain shipping points indicate ample facilities for handling all freight offered, there having been a minimum of congestion reported. For the country as a whole July loadings of revenue freight were below those o f the July, 1923, total, but well in excess of the same month in 1922. Due chiefly to gains in shipments of grain and grain products, lumber, merchandise, ore and miscellaneous freight, loadings for the wreek ending August 2 totaled 945,731 cars, an increase of 19,872 cars over the week before, a loss of 87,735 cars under the same week in 1923, but an increase of 103,068 cars over the corre sponding period in 1922. The Terminal Railway Association of St. Louis, which handles the inter change of 28 connecting carriers, interchanged 181,825 loads in July, against 175,492 loads in June and 195,318 loads in July, 1923. For the first nine days of August 59,706 loads were interchanged, which compares with 48,868 loads for the corresponding period in July and 62,799 loads in August, 1923. T o n nage m oved by the Mississippi River section of the Federal barge line between St. Louis and New Orleans during July amounted to 68,000 tons, against 82,565 tons in June and 44,395 tons in July, 1923. Passenger traffic of the reporting roads decreased 6 per cent dur ing July as compared with the same month a year ago. Reports relative to collections during the period under review, while still reflecting spotty conditions, were on the w hole somewhat more satisfactory than during the preceding thirty days. Improvement was particularly evident in the sections where winter wheat is the principal crop. In those areas many debts o f long standing were liquidated, and merchants were able to reduce their commitments with the banks. Generally through the South collection efficiency is reported high, and the same is true in the lead and zinc mining districts, but backwardness continues the rule in the chief coal producing communities. Retailers in the large cities report the usual backwardness in collections at this season, due to the absence of numerous credit customers on vacations. Replies to 402 questionaires addressed to representative interests in various lines throughout the district show the fol lowing results: Excellent July, 1924......... 2.1% June, 1924....... 0.9 July, 1923......... 3.1 Good Fair Poor 30.5% 28.4 31.3 54.5% 58.4 58.3 12.9% 12.3 7.3 Commercial failures in the Eighth Federal Reserve District during July, according to D un’s, numbered 64, involving liabilities of $579,643, against 81 defaults during June with indebtedness o f $975,155 and 47 failures for $563,872 in July, 1923. The per capita circulation of the United States on August 1 was $41.36, against $42.20 on July 1 and $42.16 on August 1, 1923. M A N U F A C T U R IN G A N D W H O L E S A L E Autom obiles Combined production of automobiles and trucks for the entire country during July showed a gain of 7.1 per cent over the June total, but fell 19.7 per cent below the July, 1923, figure. T he gain in July over June was accounted for entirely in the passenger car division, as the output of trucks showed a loss of 2,155 and was the smallest since February, 1923. M anufac turers reporting direct or through the Autom obile Chamber of Commerce built 237,431 passenger cars in July, against 217,845 in June and 297,173 in July, 1923. The output of trucks was 24,895 in July, com pared with 27,040 in the preceding month and 29,712 in July, 1923. Distribution of automobiles during the period under review, as reflected by reports of leading deal ers scattered through the district, was slightly in ex cess of the similar period immediately preceding, but approximately 5.3 per cent under the corresponding time a year ago. A feature of the month’s business was increased sales in the country, where the improved crop outlook has served to materially better the pur chasing power of farmers. Dealers in the large cities report sales of cheap and medium priced cars holding up well, but fewer of the expensive makes being dis posed of, the latter fact being attributed to the absence of many persons on vacations. Sales of parts and accessories were in the main satisfactory, the more seasonable weather having a stimulating effect on automobile travel. N o change w orthy of note took place in the tire market, which is still suffering from excessive supplies. The number of new cars in deal ers’ hands was reduced further during July, and re placements are being made on an extremely conserva tive basis. Salable used cars held by dealers were below the preceding month, and are well under the same period a year ago. Boots and Shoes July sales of the 11 reporting interests were 34.2 per cent larger than for the corresponding month in 1923, but 22.6 per cent under the preceding month this year. Business is described as active, writh results since A ugust 1 particularly good. The volum e of orders for immediate shipment is large, with some im provement in bookings for future delivery. Prices of finished goods were steady, but the trend was higher in sympathy with the upturn in the raw materials, particularly hides and calfskins. Traveling salesmen, who departed for their territories on August 1, report conditions greatly improved and their initial orders sent in have been generally above expectations. There are still numerous complaints of unusually heavy re turns of goods, which is accounted for by rapid style changes, especially on w om en’s wear. Factory opera tion was at from 70 to 90 per cent of capacity. The total number of pairs of shoes manufactured in this district during July was 0.7 per cent larger than the output of the preceding month, but for the country as a whole July production was 3.6 per cent under the June total. Clothing The arrival of fall buyers has brought decided optimism into this line, not only by their presence, but because of the sizable orders being placed. Price buying is less in evidence than it was six weeks ago, but demand still centers in the cheaper lines. Several jobbers in the latter group are behind on orders for the first time this year. W orsteds and woolens are a shade higher in response to the improved demand, but no general advance is as yet in evidence. Tw eeds are being given a preference by some buyers of men’s wear. July sales of 11 reporting interests showed no change over a year ago, but there was a seasonal downturn as compared with June, 1924, of 10.9 per cent. Representative hatters report sales for the sum mer season as 0.4 per cent under those of 1923, which in view of the belated start, is well up to expectations. Drugs and Chemicals A s compared with the same month last year, June sales of the 11 reporting interests showed a decrease of 0.9 per cent, but the total was 10.7 per cent larger than in June this year. Since the middle of July there has been a well defined improvement in all depart ments of the line. W arm er weather resulted in a good increase in sales of soda fountain supplies, and there was a good volum e of reordering of insecticides and spraying materials. The condition of the drug and fine chemical market is better than for several months past, though the gain in actual business has been limited to the call for seasonable materials. O f 35 price changes noted in July, 11 were advances and 24 declines, with quicksilver, botanical drugs and some of the essential oils among the cheaper items. Dry Goods The improvement in tone noted in the preceding issue of this report has been emphasized by the plac ing of substantial orders, July sales of the 12 reporting interests being 18.4 per cent in excess of the June total, though the aggregate volume is still under that of last year. Prices were generally firmer, with spotted advances reported on a number of important items based on cotton, silk, and w ool. Knit goods and some other lines failed to participate in the upturn. Sheet ings, wash fabrics and certain colored cottons have m oved freely, and there has also been good buying of soft-finished cloakings and fall dress goods of the heavier type. Corded fabrics are in better demand, and silk crepes are m oving in larger volume. Hosiery, which has been slow for many months, showed slight improvement. Millinery constitutes the weakest spot in the line, with July sales of reporting interests 32 per cent below last year. Electrical Supplies A further slow ing down in the demand for mater ials going into new buildings and the unusually cool summer, which held down the m ovement of fans and other seasonal goods, were mentioned as the chief factors in a reduction of 15.1 per cent in July sales of the 12 reporting interests as contrasted with the corresponding month in 1923, and a loss of 2.3 per cent as compared with the June total this year. The first half of August developed some improvement in the line as a whole, with the demand for radio sets and household appliances show ing distinct better ment, W ith the exception of copper and brass goods, which were firmer in sympathy with the upturn in raw copper, prices showed little variation as com pared with the preceding thirty days. Fire-Clay Products July business was disappointing, and though im provement developed in inquiries, big buyers were disposed to hold off. A great portion of the current business is in small lots or to dealers. Demand from iron and steel manufacturers is quiet and has follow ed closely the trend of pig-iron production. Considerable price buying has been in evidence in the oil industry. Demand from cement producers and automobile man ufacturers is about steady. Prices are unchanged, July sales of 5 reporting interests were 28 per cent under those of the same month a year ago and 8.5 per cent under the June, 1924 total. During the first tw o weeks of August some improvement was noted in demand from the iron and steel trade. Flour Production of the 11 leading mills of the district during July was 272,300 barrels, which compares with 277,560 barrels in June and 286,463 barrels in July, 1923. Mainly in sympathy with the upturn in wheat, flour prices were advanced during the latter part of July. Buyers, however, were not disposed to follow the advance, and except on clears and low grade flours, which are relatively scarce, the demand was not im pressive. Since the first week of August, however, some improvement in buying has taken place, and mills generally have increased their operations, a num ber of country mills grinding at or near capacity. Some fair orders for export to Latin-American coun tries have been booked, and there is an unfilled de mand for clears from Europe, chiefly Germany. Ship ping directions from the domestic trade are reported satisfactory. H igh grade flours, on which the demand has lagged somewhat, were shaded slightly in price during the second week of this month. Furniture Sales of the 28 reporting interests in July were 14.5 per cent under those of the corresponding period in 1923, and 2.3 per cent larger than the June total this year. W hile business is reported still considerably under normal, there has been some improvement since the middle of July. Light stocks in the hands of deal ers and the better econom ic conditions in the country have resulted in the placement of a fair volum e of orders during the past three weeks. The demand for public seating, such as opera chairs, portable folding chairs and school furniture is reported good, and more interest is being displayed in office furniture. The special trade period held in St. Louis during the last tw o weeks of July was disappointing in results, both in point of number of buyers attending and orders booked. The Evansville trade period will be held the first week of September. Groceries Im proved sentiment in the rural sections has con tributed to renewed buying by country retailers, so that in spite of the movement of garden vegetables and fruits to market, sales have been fairly sustained. Although reports continue of small berry crops in many sections, domestic canning, coupled with the general demand has been of sufficient volume to cause a good advance in the price of refined sugar. Stocks of this com m odity in retailer’s hands are generally of moderate proportions and are below normal in some instances. The Brazilian situation continues the dom i nant factor in the coffee market, with the result that prices are firmer through all grades. Canned goods are in fair demand. July sales of 22 reporting interests were 3.2 per cent in excess of the same month a year ago and 3.6 per cent in excess of the June, 1924 total. Hardware A ctivity extending more generally through the entire line than has been the case for a number of months featured business in this classification. The arrival of more seasonable weather stimulated the sale of such typical summer goods as garden hose, refriger ators, ice cream freezers, sprayers and similar lines, the movement of which had been backward earlier in the season. Camping supplies and sporting goods were also more active than heretofore, and the de mand for builders tools and hardware continues strong. Except on certain brass and copper goods, price changes for the most part represented downward revisions. Buying generally in the rural districts was more satisfactory, and improvement in the demand for fall goods was reported by several leading inter ests. July sales o f the 12 reporting interests were 6.5 per cent under those o f the same month in 1923, but 9.3 per cent in excess of the June, 1923, total. Iron and Steel Products Improvement, manifested generally in sentiment and specifically in actual returns in a number of lines, marked business in this classification during the period under review. W hile operating schedules are still low, slight gains in a number o f instances are reported and preparations were being made to increase activities during the next few weeks. There is more disposition to order for the future than at any time since the early spring, and the volum e of bookings for prom pt shipment has picked up substantially since the middle of July. Considerable unsettlement still exists in steel prices, but fewer declines were noted than during the preceding month, and in the imme diate past a slight stiffening on certain products was in evidence. Raw materials, particularly pig iron and scrap, developed upward tendencies. No. 2 Southern foundry iron, 1.75 to 2.27 per cent silicon, was quoted at $18 to $18.50, furnace, while Northern iron of the same grade moved upward from its low point of $19 to $20 per ton. Buying of pig iron was more active than at any time since the movem ent last February, and included a fair portion for last quarter delivery. Production of pig iron for the country as a whole dur ing July sustained a further decline, and was only 51.1 per cent of the high point in March. Steel ingot production also decreased sharply during July, and on an average daily basis was the smallest since January, 1922. Fabricators o f structural iron and steel report a good number o f awards of small jobs, with inquiries for larger structures more numerous than heretofore. Buying by the railroads, while confined largely to necessities, is showing more signs of life, with track fastenings and bridge repair material m oving more satisfactorily. Foundries specializing in gray iron cast ings have booked a fair volum e o f new business, and there is a distinct improvement in the demand for stoves, farm implements and other goods for use in the country. Buying by the autom otive industry con tinues quiet, and the demand from the oil fields was less active than during the preceding thirty days. W arehousemen report improvement in the demand for the general line, and have added slightly to their stocks. July sales of stove manufacturers, 7 report ing, were 24.7 per cent less than during the same month in 1923, and 36.4 per cent under the June total this year; railway supplies, 5 reporting, decreased 22*4 per cent under the same month in 1923 and 6.0 per cent below June this year; farm implements, 6 reporting, decreased 13.2 per cent under July, 1923, and 0.5 per cent under June this year; job foundries, 5 reporting, decreased 8.2 per cent under July, 1923, but gained 9.1 per cent over June this year; manu facturers of boilers, stacks, elevators, radiators, wire rope and miscellaneous products, 14 reporting, de creased 30.0 per cent under July last year, and 12.5 per cent under June this year. Lumber r- j i i t i i * i* o vi * Y a r d a n d w h o le s a le b u y i n g o l oO U tn ern p in e w a s quite active in the district during late July and the opening week of August, but since that time activi ties have decreased, due chiefly to price advances by mills, which have added substantially to their unfilled orders. Somewhat less buying has also been noticed in W estern products, except red cedar shingles, which improved in demand on strongly advancing prices. The hardwood situation continues to strengthen, despite increasing stocks at mills, but only red gum and a few items in oak have established definite and substantial advances. There has been some im prove ment in purchasing by the car builders, and the fur niture industry is showing more interest in future supplies. Prices of virtually all w oods hold to an upward course. Consumption of Electricity Decreases both as contrasted with the same month in 1923 and the preceding month this year were shown in the aggregate figures of the reporting centers. Losses were distributed generally through all indus tries, the only improvement in the comparison between June and July being shown in loads carried by cement manufacturers, flour mills and cold storage plants. The July reports reflected in more marked degree re duced use of current by automobile, steel, furniture and w ood working plants. Detailed figures follow : June, No. of July, custom 1924 1924 ers ♦K.W.H. *K.W.H. Evansville ....40 963 958 1,265 Little Rock....35 1,242 Louisville ....67 3,598 4,123 1,100 1,053 13,182 13,007 20,038 20,453 Totals.....250 *In thousands (000 omitted). July, 1924 comp, to June, 1924 + 0.5% — 1.8 — 12.7 — 4.3 + 1-4 — 2.0 July, July, 1924 1923 comp, to *K.W.H. July, 1923 — 18.3% 1,178 1,211 + 2.6 3,952 — 9.0 926 + 13.7 — 8.2 14,354 21,621 — 7.3 The follow ing figures, compiled by the Depart ment of Interior, give kilowatt production for both lighting and industrial purposes for the entire country : By water power By fuels June, 1924..............................1,765,211,000 2,183,877,000 May. 1924................................1,953,753,000 2,839,091,000 June, 1923..............................1,758,901,000 2,764,669,000 Totals 4,579,088,000 4,792,844,000 4,523,570,000 R E T A IL Condition# in the retail department of distribu tion recorded moderate improvement during the period under review. W arm weather goods moved in more satisfactory volume than during the tw o preceding months, and in a number of instances retailers were obliged to reorder in certain lines. Improvement in trade in the rural districts was general, particularly through the winter wheat areas, where extensive mar keting of grain assisted the buying power of the farm ing communities. Electrical supply dealers report quite a marked betterment in their business, with the heavier movement of radio sets, fans and other sum mer goods accounting for the larger sales total. Sporting goods, camping supplies and the general line of vacation goods were in better demand. Sales of the 22 leading department stores of the district in July showed a decrease of 1.0 per cent under the corres ponding month in 1923, but sales during the first tw o weeks of A ugust indicates a gain over a year ago. Detailed department store figures follow : Annual rate of Net sales Stocks on hand stock turnover July, 1924 July 31, 1924 July 31, 1924 For the month comp, to comp, to comp, to ending July, 1923 July 31, 1923 June 30, 1924 July 31, 1924 — 6.7% Evansville ......— 5.2% 5.3% 1.65 3.0 — 1.6 Little Rock.........— 2.5 1.91 3.5 + 6.9 Louisville ......— 1.9 2.02 7.0 — 4.9 Memphis .............-f-10.5* 2.09 — 6.3 3.1 Quincy ............. .— 3.3 2.04 St. Louis..;..........— 3.8 - f 4.1 4.1 2.29 8th uisinci.........— District.........— i.u 1.0 2.15 om -t- 2.1 4.1 — 4.4 *Increase occasioned largely by expansion of one reporting firm. + A G R IC U L T U R E M ost crops in this district underwent substan tial improvement during July, and generally favora ble weather since A ugust 1 has tended to carry this betterment still further. A ccordin g to the U. S. D e partment of Agriculture the com posite condition of all crops in states w holly or partly within the Eighth Federal Reserve District (1 0 0 = 10-year average) was 97 per cent on A ugust 1, which com pares with 90.2 per cent on June 1 and 96.6 per cent on A ugust 1, 1923. Scattered reports from various sections of the dis trict indicate rather uneven conditions, with some extremely brilliant prospects, while others are much less hopeful. V ery generally, however, emphasis is laid upon the im proved farm situation, due to more favorable prices for products o f the soil and live stock and better physical condition o f grow ing crops. Threshing of winter wheat has made rapid pro gress, save in certain localities where rain has de layed operations temporarily. Early returns are devel oping results above expectations, both in point of quantity and quality. The unusually favorable weath er for filling o f heads resulted in exceptionally plump, heavy kernels and good milling quality. The total yield o f all wheat in the district is estimated at 55,239,000 bushels, against 83,426,000 bushels har vested last year. E xcept in Indiana and Tennessee, prospects for corn improved in all states o f the district during July, and the total estimated output is 349,046,000 bushels, an increase o f 19,516,000 over the estimate based on the July 1 condition, but 54,044,000 bushels less than was harvested last year. Intensive cultivation was general through the district, and numerous fields were thoroughly cleared of weeds and grass. Stands, how ever, are spotty, and growth will average from one to three weeks late. For this reason an early frost would prove injurious to the crop, and ideal growing conditions to harvest are essential to best results. The average yield per acre o f oats in the district is high, and the total estimated crop, 61,761,000 bush els, compares with 52,072,000 bushels harvested last year. In Illinois the A ugust 1 condition of oats was rated at 92 per cent and the crop is the best since'1918. W heat— Corn— Oats The U. S. Dept, of Agriculture, in its report as of A ugust 1, 1924, gives condition of winter wheat, corn and oats in states o f the Eighth Federal Reserve District as fo llo w s: *Total production in bushels Farm Price Harvested Yield per acre Quality per bu. Winter 1924 1918-22 1924 10-yr! per cent July 15 Prelim. 1923 Prelim, av. Wheat 1924 1923 Bu. Bu. cents 60,534 51,377 14.7 17.3 Illinois .... 35,648 108 92 34,188 16.0 15.6 33,707 Indiana .. 29,520 105 96 7,688 8,320 10.0 11.7 Kentucky 4,340 115 112 37,882 Missouri 26,483 12.8 13.3 45,106 106 89 572,340 16.0 15.2 93.0 89.6 624,653 U.S.Total 589,350 * Production Farm Price per bu. Harvested Forecast 1924 Condition July 15 5-yr. av. from condition August 1 1918*22 1924 1923 10- Aug. 1 1923 Com July* 1924 yr. av. cents cents Bu. Bu. Bu. “ Wo Bu. 96 80 248,276 337,312 282,590 317,273 Illinois .... ...70 79 94 82 177,513 123,545 192,616 Indiana ......59 80 123,567 72,727 89,159 110 102 Kentucky ....79 82 78,336 87,866 142,480 173,702 104 89 170,327 196,860 Missouri .,...70 77 77,609 77,007 73,941 83 241 Tennessee ...79 82 98.3 87.0 U. S. Total..70.7 80.9 2,576,440 2,515,385 3,046,387 2,899,428 Oats <36 47 146,005 135,100 156,601 Illinois .... 81 163,762 38 47 59,088 48,692 63,154 Indiana .... 79 67,731 44 54 42,189 34,500 40,318 Missouri .....83 77 42,208 U. s. Total..88.2 80.8 1,439,041 1,356,338 1,299,823 1,302,516 49.4 40.2 *In thousands (000 omitted). Tame hay condition reports are generally favora ble, but frequent rain interruptions have greatly slowed up progress of haying operations and lowered quality in many localities. Second, or seed crop clover, outlook is good and in the South shortage of timothy will be largely made up by heavy planting of emergen cy crops, such as soybeans, cowpeas and kafir. Except in a relatively few sections, where moisture has been deficient, pastures are in excellent condition, with the general average condition on August 1 above 90 per cent. Summer fruit and vegetable prospects are in the main good. Apples in Illinois and Missouri promise about 50 per cent of a normal crop, but in Arkansas, Kentucky and Tennessee, the indicated yield is higher. The estimated yield of white potatoes for the district, based on the August 1 condition, is 18,152,000 bushels, against 18,223,000 bushels harvested last year. A decline in condition o f sweet potatoes and peanuts took place during July. The conditions of live stock continues generally good, and farm labor is adequate to all requirements. During July there was a rather sharp deteriora tion in tobacco prospects, with the estimated yield for the district dropping from 329,679,000 pounds on July 1 to 309,448,000 pounds on August 1. The total yield in 1923 was 396,737,000 pounds. Unfavorable condi tions during the planting season, and heavy rains which interfered with cultivation were factors in the lowered status of the crop. W ildfire did damage in some sections, but the hot, dry weather o f the past three weeks has served to check the spread of this disease, and has permitted of the thorough cultivation of the crop. The leaves are spreading and generally improvement is very noticeable. Prices of old tobacco remain firm. Due to extremely dry weather, the rice crop in Arkansas lost ground during July and in some fields weeds and grass made headway. On the whole, h ow ever the crop is making good progress, though the comment is made that the cost o f production will be high, due to the heavier irregating expense. Early varieties have begun to head out, and prospects are for an early maturing crop. Stocks of old rice have been largely disposed of, stock remaining consisting of low grades. The demand continues active, with prices firm. Reports relative to cotton indicate rather irregu lar conditions, but weather during the past tw o weeks has been generally favorable for development of the crop. Considerable backwardness has been caught up with, and insect damage, save in a few scattered locali ties, is negligible. A lm ost universally the crop is in splendid state of cultivation, and the plant in the main looks healthy, though there are complaints of irregu lar stands. Based on a condition of 67.4 per cent o f normal on August 1, the Crop Reporting Board of the U. S. Department of Agriculture forecasts a cotton crop for the country as a w hole of 12,351,000 bales (500 pounds gross w eight). Live Stock M ovem ent Receipts and shipments at St. Louis, as reported by the National Stock Yards, were as follow s: July, 1924 Cattle and Horses and *In thousands (000 omitted). June, 1924 103 361 2 76 July, 1923 1IT 338 3 79 July, 1924 ’ 78 201 2 14 June, July, 1924 1923 62 ~T2 222 207 2 3 15 23 Commodity Prices Range of prices in the St. Louis market between July 15, 1924, and A ugust 15, 1924, with closing quo tations on the latter date, and on August 15, 1923: Wheat High September .......... per bu$1.33£* December .......... “ 1.375* May .............. ....... “ 1,41# No. 2 red winter “ 1.47 No. 2 hard............ “ 1.35 Com September ........... “ 1.20 December ........... “ 1.14% May .................... “ 1.14% No. 2.................... “ 1.18 No. 2 white........... “ 1.18 Oats September ........... “ .55 No. 2 white........... “ .59% Flour Soft patent.........per bbl. 7.50 Spring patent....... “ 8.10 Middling cotton.....per lb. .30% Hogs on hoof.........percwt.11.10 Close L o w ' Aug. 15, 1924 Aug. 15, 1923* $1.19 $1.29^4 $1.01** 1.22 1.34% 1.04$* 1.35 1.39# 1.095* 1.3554 $1.37 <a> 1.42 1.04 1.21 1.28 @ 1.30 1.01% 1.013* .85 .92% 1.09 1.10 1.20 .785* .62^ 1.1454 1.14ft •64** 1.18 £ .86 @ .87 1.18 .84% @ .85 .50# .51% 6.00 6.90 .28 5.25 .55 ( .55 .36 .55% .39% @ .40 7.00 (3) 7.50 7.10 (3) 7.30 .28 10.45 5.25 6.10 5.50 » 6.25 >6.25 .24% >8.70 Cotton The condition of cotton in states of the Eighth Federal Reserve District and the United States is given by the Department of Agriculture as follo w s: Aug. Aug. 1, 16, 1924 1924 Arkansas ....71 71 67 Mississippi 65 Missouri ....70 72 69 Tennessee ..72 U.S.Total ..64.9 67.4 *In thousands of bales Condition Change between Aug. 1, and Aug. Aug. July 25, and Aug. 25, 1924 25, 16, 1923 10-yr. av. 1924 1923 0 —11 — 8 57 —10 48 —2 — 17 — 5 —2 — 3 67 — 5 — 5 64 +3 -2.5 — 13.1 — 9.1 54.1 (000 omitted) *Production Forecast Final Aug. 1923, (Census 16, ginnings) 1924 620 1,112 1,039 603 126 222 225 436 12,956 10,128 Commodity Movement Receipts and shipments at St. Louis, as reported by the Merchants’ Exchange, were as fo llo w s: .tuly, 1924 197 Beef, lbs........ ............. Corn, bu...................... 3,701 Flour, bbls.... Hides, lbs................... 6,101 Lard, lbs........ ............. 6,716 170 Lead, pigs...... ............. 17 Lumber, cars.............. Oats, bu........ ............. 1,832 Pork, bis........ ............. 23,933 Wheat, bu....... 188 Zinc, slabs..... ............. *Ifi thousands (000 omitted). *Receipts • June, 1923 1924 62 1,129 2,834 2,616 404 387 6,793 6,318 5,639 5,181 240 142 19 18 2,452 3,018 21,400 21,276 5,775 1,732 182 345 July, 1924 24,605 2,149 465 8,479 14,514 116 11 1,634 35,299 1,843 233 Shipments June, 1924 21,824 2,195 384 6,706 11,398 156 11 2,656 29,351 1,527 213 July, 1923 23,482 1,797 437 8,887 11,331 112 13 2,276 32,541 2,877 323 B U IL D IN G A ctivity in virtually all lines of construction con tinued at about the same pace noted during the pre ceding thirty days. W hile the amount of residential building in the larger cities shows a slight falling off as compared with recent months, the loss was com pensated by gains in other classifications, notably industrial, commercial and municipal work. The vol ume of small homes being erected in suburban com munities and the smaller towns is still large. The dollar value of permits issued during July in the five largest cities of the district showed a good increase over the preceding month, also over July, 1923. W hile somewhat easier than heretofore, the situation in the labor market is described as healthy. There is little unemployment among skilled artisans, and wages continue at their recent high levels. Road building programs are being vigorously pushed in Missouri, Illinois, and Arkansas, with considerable work of the same character reported by other states. Production of portland cement for the country as a whole during July totaled 14,029,000 barrels, against 13,538,000 bar rels in June and 12,620,000 barrels during July, 1923. Building figures for July follow : Evansville .. .. Little Rock.... Louisville .... .. Memphis ...... „ New Construction Permits *Cost 1923' 1924 1923 1924 183* T T F $ 164 $ 242 79 169 75 327 249 301 1,033 824 432 328 1,703 953 2,489 858 825 2,456 July totals.*.. ..1,797 1,645 $5,558 $4,802 4,944 5,301 June totals......1,881 1,784 May totals......2,013 7,383 7,679 2,234 *In thousands of dollars (000 omitted). Repairs, etc. *Cost Permits 1924 1924 1924 1923 TT 69 $ 16 $ 12 78 85 31 52 131 201 80 117 119 107 78 95 625 568 335 452 1,028 963 1,231 946 1,139 1,283 $661 760 1,031 $691 582 728 F IN A N C IA L A s contrasted with the similar period immediately preceding, the financial situation in this district during the past thirty days showed only minor changes. The general demand for funds from commercial and indus trial sources was moderately active only, and the banks are still heavily equipped with loanable resources, with the result that rates sustained a further slight decline. Demands from the country for crop m oving and gen eral agricultural purposes gained somewhat particu larly in the winter wheat areas, where marketing of the crop was stimulated by the high level of prices. M il lers and country elevators were active borrowers, the volume of loans in this category showing a good in crease over the preceding month. The seasonal liqui dation of live stock loans was somewhat more pro nounced than usual, due to the heavy shipments of cattle, sheep and hogs. The demand from the cotton sections is beginning to be felt, banks in the south reporting increased borrowings from that source. The past three weeks have also developed a better inquiry for credits by the southern lumber interests. Deposits of the commercial banks are at a high level, with the trend continuing upward. Commercial Paper Low er rates and decreased offerings of choice names were factors in a slow ing down in the com m er cial paper market during the period under review. Country banks, which usually retire from the market during periods of extreme low rates, were purchasing sparingly, while city banks showed a disposition to discriminate in favor of the higher grade offerings, which are relatively scarce. Rates ranged between 3% and 4 per cent, with occasional sales of particular ly prime paper at 3 per cent. Condition of Banks Condition reports of all member banks in United States as of June 30, 1924, which have now becom e available, indicate that total loans and investments on that date were $27,262,000,000, marking a further increase of $430,000,000 over the record amount shown for March 31, 1924. The increase for the period was chiefly in the banks’ investments which advanced by $342,000,000, while loans increased by $88,000,000. O f the growth in investments, $38,000,000 represented ad ditional purchases of U. S. securities, and $304,000,000 — additions to the banks’ holdings of corporate obliga tions. A rapid growth of demand deposits, including certified and cashiers’ checks, carried their total to $16,293,000,000, the largest amount on record, and time deposits increased to $9,203,000,000, also a larger total than at any previous time. T he follow ing statement shows changes in the principal resources and liabilities of all member banks on the last call date compared with three months and with a year a g o: Increase ( + ) or decrease (— ) on June 30, 1924, since March ----June 30, 1923 ' 31, " 1924 Loans and discounts (including overdrafts).......................... 4*$ 88,000,000 United States securities..............................-f 38,000,000 Other bonds, stocks and securities...........4- 304,000,000 Total loans and investments.............. + Demand deposits (including certified and cashiers’ checks).......................... 4* Time deposits..................... ....... ................ 4" Bills payable and rediscounts.................. — Acceptances outstanding............................— +$384,000,000 — 262,000,000 + 465,000,000 430,000,000 + 587,000,000 707,000,000 313,000,000 242,000,000 108,000,000 4~1,132,000,000 4" 825,000,000 — 570,000,000 ^ ^ 60,000,000 The follow ing statement shows principal re sources and liabilities of reporting member banks in Evansville, Little Rock, Louisville, Memphis, and St. Louis : *Aug. 6, *July ♦July 9, *Aug. 8, 1924 Number of banks reporting.................................. t34 Loans and discounts (incl. rediscounts) Secured by U. S. Govt, obligations............. ...$ 8,040 Secured by other stocks and bonds................ 146,758 All other loans and discounts............................ 306,216 1924 t34 1923 36 $ 8,277 142,915 309,040 $ 11,799 137,568 309,427 Total loans and discounts..................................... $461,014 $460,232 Investments U. S. Pre-war bonds................ ........................ 14,808 14,809 21,940 23,091 Liberty bonds........................ ............................ Treasury bonds........................................... *...... 2,509 3,689 Victory and Treasury notes.............................. 9,411 15,087 Certificates of Indebtedness................. ............ 1,201 1,380 Other securities................................................. 92,875 91,993 $458,794 15,325 23,517 9,350 21,255 6,563 84,707 Total investments......................................... ........ $142,744 $150,049 $160,717 45,834 41,556 Reserve balance with F. R. bank........................ 46,143 7,569 7,840 Cash in vault........................................................... 7,832 345,910 363,252 Net demand deposits.............*............................... 355,689 197,826 190,633 Time deposits......................................................... 203,157 5,228 2,467 Government deposits............................................. 2,170 Bills payable and rediscounts with Federal reserve bank 9,943 242 Secured by U. S. Govt, obligations........... 0 All other........................................................... 1,578 18,927 2,796 ♦In thousands (000 omitted), t Decrease due to consolidation. Total resources of these 34 banks comprise approximately 54 per cent of the resources of all member banks in the district. From the above statement it will be noted that the total deposits in the 34 reporting member banks in this district as of August 6, 1924, while $2,529,000 under those of a month ago, are $19,245,000 greater than a year ago. Loans and discounts of the reporting banks show an increase of $782,000 over the previous month and an increase of $2,200,000 over a year ago. Investments o f the reporting member banks decreased $7,275,000 since last month and decreased $17,973,000 from a year ago. Federal Reserve Operations In contrast to the developments of member banks, bills discounted held by the Federal Reserve Bank of St. Louis on August 23, 1924, amounted to $19,214,000, as compared with $18,163,000 the previous month and $55,741,000 a year ago. During July the reserve bank discounted for 244 of its 629 member banks, which compares with 260 of its 631 member banks accom m o dated in June. The discount rate of this bank remains unchanged at 4 per cent. The combined reserve ratio of this bank against deposit and Federal reserve note liabilities on August 23, 1924, was 80.5 per cent as compared with 85.2 per cent last month and 62.3 per cent a year ago. U. S. Government and also certificates of deposit paid, in the leading cities of this district during the past month and corresponding period a year ago. Charges to the accounts of banks are not included. These fig ures are considered the most reliable index available for indicating actual spending by the public during the periods which they cover: E. St. Louis and Natl. Stock Yards El Dorado, Ark.... Evansville, It Fort Smith, 1 Greenville, M Helena, Ark. Little Rock, Louisville, K? Memphis, Tc Owensboro, Quincy, 111... St. Louis, M< Sedalia, Mo- ♦For four weeks ending Aug. 13, July 16, Aug. 15, comp, to comp, to 1924 1924 1923 July 1924 Aug. 1923 ..$ 36,906 $ 34,971 $ 40,897 4- 5.5% — 9.8% „ 7,154 7,037 8,353 — 14.4 4- 1.7 25,076 28,356 27,252 — 11.6 — 8.0 9,059 — 2.0 .. 8,897 9,081 — 1.8 .. 2,503 2,962 2,425 — 15.5 4- 3.2 „ 3,097 3,623 3,332 — 7.1 — 14.5 4*12.0 .. 49,287 49,924 44,024 — 1.3 .. 142,656 159,035 128,916 — 10.3 4-10.7 .. 85,979 — 15.9 — 3.5 102,243 89,090 4,949 5,099 — 3.6 5,135 — 2.9 10,524 — 28.2 . 7,561 9,825 —23.0 4 -2 .2 .. 556,571 588,037 544,391 — 5.4 3,486 3,800 — 8.3 .. 9,864 — 14.2 10,630 — 7.2 11,495 ,.$943,986 $1,014,601 tnitted). — 7.0 4- 2.1 Savings Deposits The changes in the amount of savings deposits, exclusive of postal savings deposits, since a month ago and a year ago, as reported by the largest mem ber banks in the leading cities of this district, are shown in the follow ing table: No. of banks reporting Evansville .... 4 Little Rock.... 5 Louisville .... 7 Memphis ..... 4 St. Louis.......12 ♦Amount of savings deposits Aug,. 1924 Aug., 1924 Aug. 6, July 2, Aug. comp, to . comp,----to --------19231, ----1924 1924 July, 1924 Aug., 1923 9,193 9,243 9,050 — 0.5% 4- 1.6% 7,613 7,262 7,915 — 3.8 4- 4.8 27,218 26,627 23,296 4- 2.2 4-16.8 17,374 17,899 18,451 — 2.9 — 5.8 76,778 76,866 71,681 — 0.1 4- 7.1 Totals.......32 $138,176 ♦In thousands (000 omitted). $138,550 $129,740 0.3 4- 6.5 COST OF L IV IN G The average cost of living in the United States, according to the National Industrial Conference Board, remained unchanged between June 15, and July 15, 1924, although all of the separate items, ex cept light, showed slight variations in this period. Between March 15, and July 15, 1924 there was an average decrease of nine-tenths o f one per cent in the cost of living, due to decreases in the average cost of food, clothing, fuel and sundries. The only increase was in the average cost of shelter; the cost of light remained the same in this period. Between July, 1920, when the peak of the rise since 1914 was reached, and July, 1924 there was a decrease of 20.9 per cent. The increase since July, 1914 was 61.7 per cent. The follow ing table shows in detail the changes in the cost of living noted above: Debits to Individual Accounts Rela Percentage of increase Percentage of decrease tive import- in the cost of living in the cost of living above average prices on July 15, 1924, tance Item in July, 1914, to------ from average prices in in family July,Mar., June, July, July, Mar. June, budget 1920 1924 1924 1924 1920 1924 ______ 1924 Food ,43.1 11944 42 43 34.7 0.7 0.7** Shelter ............................17.7 58 85 85 86 17.7** 0.S** 0.5## 166 76 74 71 35.8 2.4 1.8 Clothing ..........................13.2 66 72 65 66 0.0 3.4 0.6** Fuel and light.................. 5.6 (92) (87) (77) (78) (7.3) (4.8) (0.6)*# (Fuel) ........................ (3.7) (Light) ........................ (1.9) (15) (42) (42) (42) (23.4)*#(0.0) (0.0) 8574 74 73 6.4 0.6 0.6 Sundries ..........................20.4 Weighted average _______________ ____ ____ 104.5 63.2 61.7 61.7 20.9 0.9 0.0 of all items................ 100.0 ♦Food price changes are from the United States Bureau of Labor Statistics. ^♦Increase. The follow ing table gives the total debits charged by banks to checking accounts, savings accounts and trust accounts of individuals, firms, corporations and The purchasing value of the dollar based on the cost of living in July, 1924 was 61.8 cents as contrasted with one dollar in July, 1914. (Compiled August 23, 1924) BUSINESS CONDITIONS IN T H E U N ITE D STATES Production in basic industries, after a considerable decline in recent months, was maintained in July at the same level as in June. Factories employment continued to decline; whole sale prices increased for the first time since early in the year, reflecting chiefly the advance in the prices of farm products. Prices Wholesale prices, as measured by the index of the Bureau of Labor Statistics, increased more than 1 per cent in July. Prices of farm products, foods, and clothing increased, while prices of building materials again declined sharply and prices Latest figure, July—94. Production The Federal Reserve Board’s index of production in basic industries, which had declined 22 per cent between February and June, remained practically unchanged during July. Iron and steel and woolen industries showed further curtailment, while production of flour, cement, coal and copper was larger than in June. Factories employment decreased 4 per cent in July owing to further reduction of prices in the textile, metal, and automobile industries. Building contract awards showed more than the usual seasonal decline in July, but were 10 per cent larger than a year ago. Crop conditions, as reported by the Department of Agriculture, were higher on August first than a month earlier. Estimated production of nearly all of the principal crops, except tobacco, was larger than in July and the yields of wheat, oats, rye, and cotton are expected to be considerably larger than last year. Latest figure, July=147. Trade Railroad shipments increased in July owing to larger loadings of miscellaneous merchandise, grain and coal. Whole sale trade was 3 per cent larger in June, owing to increased sales of meat, dry goods, and rugs, but was 3 per cent smaller than a year ago. Retail trade showed the usual seasonal decline in July and department store sales were 1 per cent greater and mail order sales 7 per cent less than a year ago. Merchan dise stocks at department stores continued to decline during July and were only slightly larger at the end of the month than a year earlier. of metals, fuel, and house furnishings also decreased. During the first half of August quotations on corn, beef, sugar, silk, copper, rubber, and anthracite advanced, while prices of cotton, flour and bricks declined. Bank Credit Commercial loans of member banks in leading cities, owing partly to seasonal influences, increased considerably early in August. Loans secured by stocks and bonds and investments continued to increase, so that at the middle of August total loans and investments of these banks were larger than at any previous time. Further growth of demand deposits carried them also to the highest level on record. Between the middle of July and the middle of August Federal Reserve bank discounts for member banks declined further and their holdings of acceptances decreased somewhat. United States security holdings increased, however, and total earning assets of Federal Reserve banks remained practically unchanged. Continued easing in money rates in the New York market during July and early August is indicated by a decline of 54 of 1 per cent in prevailing rates for commercial paper to 3J4 per cent. After the middle of August there was some ad vance in open market rates for bankers’ acceptances and short term Government securities. During August the discount rate at the Federal Reserve Bank of New York was reduced from Zy2 to 3 per cent and at the Federal Reserve bank of Cleve land and of San Francisco from 4 to 3 ^ per cent. M EM B ER B A N K C R E D IT BILLIONS OF DOLLARS Index for 33 manufacturing industries. Latest figure, July=8 7 . B ILLIONS OF DOLLARS W eekly figures for member banks in 101 leading cities. Latest figure, August 14.
@FedFRASER