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MONTHLY REVIEW
Of Agricultural, Industrial, Trade and Financial
Conditions in the Eighth Federal Reserve District
RELEASED FOR PUBLICATION ON THE MORNING OF AUGUST 30, 1937
FEDERAL
RESERVE
District Summary
.
.
,
Aug. 1, 1937, comp, with
Agriculture:
Yield 1936 1923-36 Av.
Estimated yield of 7 crops................. +59.8% + 6.6%
_ .
„
,
Live Stock:
July, 1937, comp, with
June, 1937 July, 1936
.—16.1%
—14.6
— 1.1%
+ 7.2
—12.8
—22.9
+ 6.2
— 6.1
+ 8.4
+ 3.1
..—15.8
Bldg.permits,incl. repairs j
—25.8
Yalue construc. contracts awarded......— 9.6
Miscellaneous:
—22.7
Commercial failures { S S t i e s ' Z I —46.6
Consumption of electricity................ + 5.8
Debits to individual accounts........... — 2.5
+ 9.1
+40.1
—34.8
Production and Distribution:
Building and Construction:
—29.2
—35.1
+ 10.0
+ 10.1
Aug. 11/37 comp, with
Member Banks (24):
July 14/37 Aug. 12/36
Gross deposits......................................— 1.8% + 0.1%
Loans............................ ....................... + 7.6
+21.5
Investments.......................................... — 0.5
— 7.6
HE situation of trade and commerce in the
Eighth District during July and the first half
of August developed no outstanding change
as contrasted with the several months immediately
preceding. Activities have been well maintained,
such slowing trends as have occurred being trace
able to seasonal influences. Due to very promising
prospects for practically all crops and improvement
in income of farmers and other groups, these influ
ences are much less in evidence than is ordinarily
the case at this time of year. Distribution of mer
chandise, as reflected in freight-car loadings, and
statistics of wholesale and retail merchants, contin
ues at, or about the highest levels attained in the
recovery period, after allowance is made for sea
sonal factors. In a majority of merchandising and
manufacturing lines investigated by this bank, July
results were measurably ahead of those for the same
month in 1936, and for all years since the predepres
sion era. While advance business in some lines is
slightly behind the volume at the same time a year
ago, ordering for fall and winter distribution since
T
BANK
OF
ST.
LOUIS
the middle of July has been on a larger scale than
earlier in the season. Quite generally throughout
the district sentiment in the business community
was noticeably more optimistic than heretofore.
While pressure from consumers for raw materi
als and manufactured goods in the heavy industries
has eased in a number of instances, durable goods,
including iron and steel, lumber, glass and quarry
products, made a very favorable showing for this
time of year. Steel mills reported a recession in
new bookings, but still have backlogs sufficient to
maintain the present rate of operations for some
weeks to come. Manufacturers of farm implements,
railroad equipment, and some other specialties are
operating at peak schedules of the year. Though
production of soft coal for the entire country in July
decreased slightly from a month and a year earlier,
output at mines in this area showed increases in
both comparisons. Consumption of electric current
by industrial users in the principal cities in July re
corded a new all-time high, and was 10 per cent
greater than a year ago. Lumber production declined
in less than the usual seasonal amount and since
August 1 there has been a moderate increase in new
orders. Meat packing declined rather sharply, and
was measurably below the July, 1936, volume.
The agricultural outlook remains favorable, the
only outstanding detrimental development during
the past thirty days being rather sharp declines in
the price of farm products, including wheat, corn,
cotton and oats. However, largely increased produc
tion of the principal crops, plus Government pay
ments, according to the U. S. Department of Agri
culture, indicate aggregate farm income in this dis
trict measurably greater than a year ago and all pre
ceding years since the predepression era. The wheat
harvest has been completed, and threshing returns
reflect considerable variation in quantity and qual
ity, owing to damage from black stem rust and pre
mature ripening. Corn, cotton, tobacco, potatoes,
hay, and a majority of fruits and vegetables will be
larger crops than a year ago. Tobacco prospects
declined slightly from June to July, but the esti
Page 1
mated yield of all types is still measurably above the
quantity harvested in 1936.
in June and 24 failures for a total of $205,000 in
July, 1936.
As reflected by sales of department stores in the
principal cities, the volume of retail trade in July
was 22.9 per cent less than in June and 8.4 per
cent greater than in July, 1936; cumulative
total for the first seven months was larger by 11.4
per cent than during the comparable period in 1936.
Combined sales of all wholesaling and jobbing in
terests reporting to this bank in July were 12.8 per
cent and 6.1 per cent smaller, respectively, than a
month and a year earlier and for the first seven
months the aggregate was 21.2 per cent in excess of
that for the like period in 1936. The dollar value of
permits issued for new buildings in the principal
cities in July was about one-third less than in June,
but 44.8 per cent greater than in July, 1936; cumu
lative total for the first seven months was 30.4 per
cent in excess of that for the same period in 1936.
The dollar value of construction contracts let in the
Eighth District in July fell 9.6 per cent and 34.8 per
cent, respectively, below a month and a year earlier;
cumulative total for the first seven months was 9.7
per cent smaller than for the comparable period
in 1936.
Detailed Survey
Bolstered by heavy movements of winter wheat,
vegetables, fruits and miscellaneous freight, freight
traffic of railroads operating in this district in recent
weeks exceeded the volume of all similar periods
since 1930. Vacation travel during July was stimu
lated by advertising campaigns and special tours
conducted by the various lines, and passenger traffic
continued the steady gains of preceding months this
year. Estimated tonnage of the Federal Barge Line
between St. Louis and New Orleans in July was
0.3 per cent more than in June and 8.9 per cent
greater than in July, 1936.
Reports relative to collections during July and
the first half of August showed a slight recession
as compared with the preceding month, and the
average was somewhat below that of corresponding
month in 1936. Questionnaires addressed to repre
sentative interests in the several lines scattered
through the district showed the following results:
Excellent
July, 1937................... 2.5%
June, 1937................... 3.7
July, 1936................... 3.6
Good
48.0%
51.3
55.6
Fair
37.5%
23.5
38.3
Poor
12.0%
11.5
2.5
Commercial failures in the Eighth Federal Re
serve District in July, according to Dun and Bradstreet numbered 17, involving liabilities of $133,000,
against 22 insolvencies with liabilities of $249,000
Page 2
MANUFACTURING AND WHOLESALING
Lines of
Commodities
Boots and Shoes.........
Drugs and Chemicals..
Dry Goods...................
Electrical Supplies......
Net Sales
7 months 1937
July, 1937
comp, with same
compared with
period 1936
June, ’ 37 July, ’ 36
+ 28.4 %
— 26.3% — 17.8%
+ 11.8
+ 4.8
— 6.3
+ 10.8
+ 0.6
+ 7.8
+39.3
+ 14.5
— 9.7
+27.9
— 9.0
— 12.9
+ 7.4
— 8.0
— 0.5
+23.6
+ 13.7
— 6.7
All above lines......... — 12.8
— 6.1
+ 21.2
Stocks
July 31, 1937
comp, with
July 31, 1936
- 6.7%
f-16.4
-67.9
-31.2
-39.5
h 7.9
-30.8
+ 34.1
Automobiles — Combined passenger car, truck
and taxicab production in the United States in July
was 438,834 against 497,298 in June and 440,731 in
July, 1936.
Boots and Shoes — The decline in sales of the
reporting interests from June to July, as shown in
the above table, was contraseasonal and attributable
to unusually heavy purchasing during the two pre
ceding months. Since the first week in August
there has been a noticeable pickup in ordering, both
for spot and future shipment. Production during
July and early August was maintained at the rela
tively high levels which have obtained in recent
months. The trend of prices was slightly upward,
with the average of both raw and finished materials
well above a year ago.
Clothing — July sales of the reporting clothiers
were 8.8 per cent larger than during the preceding
month and 12 per cent less than the July, 1936, total.
Inventories continued to increase, stocks on hand as
of August 1 being 19 per cent greater than a month
earlier and about one-fourth larger than on August
1, 1936. The warmer weather since the middle of
July has been reflected in a more active movement
of lightweight apparel than earlier in the season.
Demand for work clothes was reported in larger vol
ume than at any similar period in the past several
years.
Drugs and Chemicals — According to reporting
firms, the increase in July sales over a year ago was
attributable in large measure to expansion in de
mand for heavy chemicals and drugs by the general
manufacturing trade. As has been the case in re
cent months, the movement of toilet preparations
and other luxury goods continued to increase.
Dry Goods — The increase in sales of the re
porting firms from June to July was of about the
usual seasonal proportions. Since August 1 there
has been some slowing down in new buying, attribu
table mainly to the decline in the price of raw cot
ton. Withal, advance orders for late fall and winter
delivery are reported in larger volume than at any
similar period since 1930. August collections were
reported generally satisfactory.
Electrical Supplies — For the thirteenth con
secutive month, sales in this classification exceeded
those of the corresponding period a year earlier.
The decrease from June to July was somewhat
smaller than the experience during the past decade.
As contrasted with a year ago, betterment was noted
in virtually all lines, but most pronounced in build
ing installations, radio materials and household
appliances, notably refrigeration.
Furniture — With the exception of a year ago,
July sales of the reporting firms were the largest
for the month since the boom year of 1929. Sales
of household furniture and furnishings showed
some recession as compared with earlier months this
year. Demand for metal furniture, including equip
ment for schools, offices, hospitals, taverns, etc.,
was reported in considerable volume.
Groceries — The greater abundance and lower
prices of fruits and vegetables this year than last
was partly accountable for the decline in July sales
of the reporting firms under the same month in
1936. The decrease from June to July was seasonal
in character, but smaller than average than in re
cent years.
Hardware — While showing about the expected
decline from June to July, sales of the reporting in
terests in July were the largest for the month since
1929. Reflecting the excellent crop prospects, order
ing by country retailers was in measurably larger
volume than at the same period during the past
several years. According to a number of the prin
cipal reporting firms, sales of all descriptions of
sporting goods, outing supplies and kindred lines
this season represented the largest volume on record.
Iron and Steel Products— A moderate recession
in activities in the iron and steel industry in this
area marked the closing weeks of July and the first
half of August. The slower pace was attributable
entirely to seasonal influences, and was considerably
less pronounced than is ordinarily the case. Opera
tions at farm implement and tractor plants, also at
steel foundries specializing in railroad castings were
maintained at the high levels which have obtained
since early spring. Pressure for delivery of steel
mill products, notably sheets, plates, bars and other
flat rolled materials, has relaxed and backlogs have
been reduced to the lowest point in a number of
months. Withal, unfilled orders still on mill books
are sufficiently large to maintain the present sched
ules well into the fall. Due to the favorable season
for the fruit and vegetable pack and expansion in
the general use of containers, sales of tin plate are
reported to be the largest in any recent year. Ad
vance ordering of wire fencing and accessories, also
other commodities used in the rural areas, accord
ing to producers and distributors reporting to this
bank, is in larger volume than at any similar period
since the predepression era. New business from the
oil fields broadened to some extent during July, and
shipments of goods previously acquired were heavy,
particularly of tank plates, drilling supplies and
pipe line accessories. Sales of warehouse and job
bing interests in July fell slightly below the pre
ceding month, but the total was approximately onefifth greater than in July, 1936. Orders booked by
jobbing foundries in July were about on a parity
with the June aggregate and 22 per cent greater
than in July a year ago. Pig iron shipments to dis
trict melters in July fell slightly below the preced
ing month, but were measurably greater than during
any July since 1929. Aside from a sharp advance in
scrap iron and steel quotations in early August, price
changes of raw and finished products during the
past thirty days have been negligible. For the entire
country, production of pig iron in July, according
to the magazine “ Steel” , totaled 3,501,359 tons,
against 3,115,302 tons in June and 2,595,791 tons in
July, 1936. Steel ingot production in the United
States in July amounted to 4,556,596 tons, which
compares with 4,183,762 tons in June and 3,914,370
tons in July, 1936.
MINING
Production of bituminous coal in the United
States in July showed little change from the preced
ing month and a year ago. At mines in this general
area, however, July output was greater by 7.2 per
cent and 2.7 per cent, respectively, than a month
and a year earlier and an increase of 3.7 per cent in
cumulative production for the first seven months
over the same period in 1936 was recorded. Outlet
through industrial channels continued broader than
is usual at this time of year and contrasting for fall
and winter supplies by utilities companies, public
institutions and other consumer groups was in con
siderable volume. Production of soft coal for the
entire country in July was estimated at 31,610,000
tons, which compares with 31,726,000 tons in June
and 32,005,000 tons in July, 1936; for the first seven
months this year the cumulative tonnage was
253,721,000 tons, as against 232,836,000 tons during
the like period a year earlier. At Illinois mines in
July 2,732,473 tons were lifted, which compares with
2,492,189 tons in June and 2,927,413 tons in July,
1936. There were 113 mines in operation in July and
27,364 men on payrolls, as against 106 active mines
and 27,527 operatives during the preceding month.
Page 3
RETAIL TRADE
Department Stores — The condition of retail
trade is reflected in the following comparative state
ments showing activities in the leading cities of the
district:
Stocks
Net Sales_____________ on Hand
July, 1937
7 mos. 1937 July 31/37
compared with
to same comp, with
June, 1937 July, 1936 period ’ 36 July 31/36
+ 9.9% + 5.9%
El Dorado, Ark......... — 15.8% + 1 6 .1 %
Ft. Smith, Ark......... — 16.5
+ 1.4
+ 5.1
+10.2
Little Rock, Ark........— 17.9
— 2.2
+ 6.4
+20.8
Louisville, K y........... — 25.7
+ 9.8
+11.3
+16.8
Memphis, Tenn......... — 22.5
+ 7.3
+ 11.4
+23.3
Pine Bluff, Ark......... — 13.5
— 18.0
+ 6.5
+ 4.2
St. Louis, M o........... — 23.1
+ 10.2
+12.3
+22.8
Springfield, M o......... — 24.0
+ 13.8
+ 11.4
+12.6
+ 0.9
+ 5.7
+15.9
All Other Cities......... — 27.1
8th F. R. District..... — 22.9
+ 8.4
+11.4
-1-21.4
Stock
Turnover
Jan. 1, to
July 31,
1937 1936
-1.70 1.58
1.42 1.48
1.50 1.67
2.33 2.45
1.77 1.83
1.98 2.21
2.19 2.30
1.42 1.52
1.76 1.81
2.05 2.16
Percentage of collections in July to accounts
and notes receivable first day of July, 1937, by cities :
Installment Excl. Instal.
Accounts
Accounts
El Dorado.... ............ % .... .......7675%
Fort Smith...
.......34.6
Little Rock.. ..... 12.4 .... ....... 36.5
Louisville ....
.......52.1
Memphis .... ......20.6 .... .......41.1
Installment Excl. Instal.
Accounts
Accounts
Pine Bluff................. %... ........ 35.4%
Springfield ...................... .........27.8
St. Louis........... 16.7 ... ........ 52.4
Other Cities...... 11.0 ... ........43.4
8th F. R. Dist..l5.1 ,,,........ 48.2
Specialty Stores — July results in men’s fur
nishings and boot and shoe lines are shown in the
following table:
Stocks
___________ Net Sales_____________ on Hand
July, 1937
7 mos. 1937 July 31/37
compared with
to same comp, with
June, 1937 July, 1936 period ’ 36 J.uly 31/36
Men’s Furnishings....— 44.7% — 5.4% + 5.9% + 22.6 %
Boots and Shoes....... — 33.3
+ 22.2
+ 17.2
+37.9
Stock
Turnover
Jan. 1, to
July 31,
1937 1936
1.46 1.50
3.98 4.01
Percentage of collections in July to accounts
and notes receivable first day of July, 1937:
Men’s Furnishings............... 36.3%
Boots and Shoes........................41.5%
AGRICULTURE
According to the U. S. Department of Agri
culture, excellent weather for corn, cotton, potatoes,
rice, most fruits, and various other crops has re
sulted in very marked improvement in agricultural
prospects in the Eighth District and the entire
country, also gives assurance of an adequate supply
of food, feed, forage and fiber crops this season.
Potatoes, rice and cotton are expected to show the
highest yields per acre on record and most other
productions are expected to yield much better than
in recent drouth years. Pastures have not fully re
covered from the successive drouths and are still
under their average condition, but as of August 1
were reported better than on the like date during
the past six or seven years. Considering both har
vested crops and present growing conditions, the
favorable outlook extends to nearly all sections of
the district. Taken as a whole, the economic posi
tion of the rural community is better than at any
time in recent years, particularly in the typical grain
producing areas.
Combined receipts from the sale of principal
farm products and Government payments to farmers
Page 4
in states including the Eighth District during the
periods January-June 1935, 1936, 1937 and during
June, 1936 and 1937, are given in the following
table:
(In thousands
________ January-June________
of dollars)
1935
1936
1937
Indiana ................. $112,535
$121,741$141,297
Illinois ................. 184,788
204,247
233,446
Missouri ............... 103,554
107,752
110,059
52,605
85,800
Kentucky ............. 70,191
Tennessee ............. 49,102
42,997
60,967
33,410
56,583
Mississippi ........... 36,715
Arkansas ............... 38,917
28,560
48,176
Totals............... 595,802
591,312
736,328
______ June
1936
1937
$ 22,952 $ 22,235
37,633
38,679
21.405
20,773
9,864
10,181
8,058
9,066
6,804
7,489
5,709
6,252
112,425
114,675
Where uninterrupted by rains, field work made
good progress. The farm labor situation underwent
improvement with passing of the rush of demands
incident to harvesting and threshing of winter
wheat. Plowing has gotten under way in the north
ern tier of counties. At mid-August rains were
needed in many sections, precipitation during the
first half of the month being spotty and inadequate.
Scattered reports of damage from severe wind, rain
and hail storms have been numerous during the
past three weeks.
Traceable to price adjustments toward a new
crop basis, the general level of farm products de
clined rather sharply during the past thirty days.
Moderate to drastic declines were reported in grains,
with the exception of rice. Apple prices declined
noticeably as shipments of early varieties from the
large 1937 crop in prospect started to market. With
the exception of lambs, which declined seasonally,
price advances were registered on all classes of meat
animals. Reflecting a continued decrease in market
ings, hog prices soared to the highest levels in
almost a decade. As of August 7 the farm products
group of the Bureau of Labor Statistics Price Index
stood at 86.9 per cent of the 1926 average, a decline
of .8 per cent under the preceding week and com
paring with 83.2 per cent on August 8, 1936, 79.7
per cent on August 10, 1935 and 58.5 per cent on
August 12, 1933.
Corn — Prospects for the corn crop improved
moderately during July, and indications point to
above average yields per acre. In its report based
on conditions as of August 1, the U. S. Department
of Agriculture estimates production in the Eighth
District proper at 359,706,000 bushels, an increase
of 17,156,000 bushels over the July 1 forecast and
comparing with 202,726,000 bushels harvested in
1936 and the 14-year (1923-1936) average of 237,361,000 bushels. Affected by the favorable crop pros
pects, and in adjustment with the general feed situa
tion, prices of corn declined sharply, touching new
low levels for the season in mid-August.
7
Cotton — In its initial forecast for the season
the U. S. Department of Agriculture estimates the
Eighth District cotton crop at 3,736,000 bales, as
against 3,404,000 bales produced in 1936 and the
14-year average of 2,763,000 bales. Picking has be
gun in many localities, and ginning reports reflect
generally high quality of the staple. The price of
raw cotton declined sharply, the weakness being
accounted for by the favorable crop prospects. In
the St. Louis market the middling grade ranged
from 12.50c to 10.25c per pound between July 15
and August 16, closing at 10.65c on the latest date,
as against 12.50c on July 15, and 12.65c on August
16, 1937. Combined receipts at Arkansas and Mis
souri compresses from August 1, 1936, to July 30,
1937, totaled 1,356,655 bales, which compares with
1,003,095 bales a year earlier. Stocks on hand as of
July 30 amounted to 154,776 bales, against 157,609
bales on July 18 and 259,713 bales on the corre
sponding date in 1936.
Fruits and Vegetables — Not in a number of
years have prospects for and production of fruits
and vegetables been as high as in the present season.
Since the last wTeek in July rainfall has been defi
cient in many localities and at mid-August some
species were showing the effects of lack of moisture.
Yields of tomatoes, beans, sweet corn and other
commercial vegetable crops have taxed the capaci
ties of canneries to handle current receipts. In its
report based on conditions as of August 1, the U. S.
Department of Agriculture estimates the 1937 pro
duction of apples in states including the Eighth Dis
trict at 25,229,000 bushels, against only 5,590,000
bushels harvested in 1936 and the 5-year (1928-1932)
average of 15,199,000. In these states the peach crop
is estimated at 10,065,000 bushels, as compared with
3.422.000 bushels in 1936 and the 5-year average of
7.265.000 bushels ; pears, 3,297,000 bushels, against
1.352.000 bushels in 1936 and the 5-year average of
1.870.000 bushels; grapes, 44,650 tons, against
25,060 tons in 1936 and the 5-year average of 33,010
tons. The forecast for sweet potatoes is for 19,493,000 bushels, the largest in recent years and compar
ing with 15,031,000 bushels produced in 1936 and the
5-year average of 17,483,000 bushels. Plums, cher
ries, cane fruits and melons are all larger crops than
a year ago and the average. In the district proper
production of white potatoes is estimated at 12,870,000 bushels an increase of 27,000 bushels over the
July 1 forecast and comparing with 8,333,000 bushels
harvested in 1936 and the 14-year (1923-1936) aver
age of 13,562,000 bushels.
Livestock — Under influence of abundant pas
turage favorable weather and more liberal rations
of prepared feeds, the condition of livestock general
ly throughout the district continued the steady bet
terment which began in early spring. Despite the
rise in prices of hogs to the highest point in about
ten years, marketings were small, reflecting the re
duced numbers of swine on farms. Hay production
in the Eighth District is estimated at 5,982,000 tons,
against 4,447,000 tons in 1936 and the 14-year aver
age of 6,509,000 tons.
The number of cattle on feed for market in the
Corn Belt States on August 1 was about 29 per cent
smaller than a year earlier, and apparently the
smallest number on feed as of that date in many
years, according to the Bureau of Agricultural
Economics. This decrease from a year ago, of 29
per cent on August 1, compares with a similarly
estimated decrease of 35 per cent on April 1, 1937
and of 23 per cent on January 1, 1937. Approxi
mately 20 per cent less beef was produced for
domestic consumers in July than a year ago and 7
per cent less than in June this year. Production of
pork was also considerably smaller in July this year
than last.
Milk production continued at a relatively high
level during July, with less than the usual seasonal
decrease occurring during the month. Reports from
all states of the district indicate a higher production
per cow than has been recorded on August 1, in any
of the past seven years. On that date in states of
this district production per cow was 12.4 pounds,
a decrease of 3.9 per cent as compared with July 1,
but an increase of 3.3 per cent as compared with the
10-year (1925-1934) average, and an increase of 9.7
per cent over the production on August 1, 1936.
Receipts and shipments at St. Louis as reported
by the National Stock Yards were as follows:
_________Receipts_______
July,
June,
July,
1937
1937
1936
Cattle and Calves..... 143,858 135,395 117,807
Hogs ......................... 107,847 134,141 151,763
Horses and Mules..... 3,935
2,618
3,166
Sheep ......................... 91,521 141,554 78,295
______ Shipments________
July,
June, July,
1937
1937 1936
93,394 86,738 67,093
66,701 80,292 89,819
3,189
2,842 2,857
21,818 46,854 12,887
Totals..................... 347,161 413,708 351,031
185,102 216,726 172,656
Tobacco — Eighth District production of tobac
co is estimated by the U. S. Department of Agricul
ture at 272,255,000 pounds, a decline of 2.7 per cent
from the July 1 forecast and comparing with
176,784,000 pounds harvested in 1936 and the 14-year
(1923-1932) average of 287,796,000 pounds. The re
cession in prospects during July was attributable to
insufficient rainfall, and at mid-August there were
increasing complaints of dryness. A considerable
part of the burley crop has been topped, though it
is generally small. In the green river and stemming
district the crop is in good condition and growing
well.
Page 5
Winter Wheat — Yields of wheat in a number
of localities were affected by black rust and high
temperatures, which caused premature ripening.
This not only reduced quantity but also the average
test weight per measured bushel, the result of which
will be a lower output of flour per bushel of wheat.
Threshing has been virtually completed and the
grain is moving rapidly to market. Based on
August 1 conditions, the yield of wheat in the Eighth
District proper is estimated at 79,780,000 bushels,
an increase of 4,149,000 bushels over the July 1 fore
cast and comparing with 60,630,000 bushels har
vested in 1936 and the 14-year average of 50,993,000
bushels. Stocks of old wheat in interior mills, eleva
tors and warehouses on July 1 were the smallest of
record since 1919 when they were first estimated by
the Bureau of Agricultural Economics.
COMMODITY PRICES
Range of prices in theSt. Louis market be
tween July 15, 1937, and August 16, 1937, with clos
ing quotations on the latter date and on August 15,
1936, follow s:
High
Low
Wheat
Sept......................per bu..$1.2756 $1.09*6
D ec....................... “
1.2954 1.1054
*May ................... “
1.185/6 1.12*4
No. 2 red winter “
1.29*4 1.12
*No. 2 hard “
“
1.28*4 1.14*4
Corn
*Sept...................... "
1.14*4
.93
*D ec....................... “
.81
.65
*May ................... “
.69*4
.665/6
1.27*4 1.04
*No. 2 mixed ..... “
*No. 2 white ..... “
1.25
1.06
Oats
*Sept...................... “
.38
.27*4
*D ec....................... “
.40*4
.29*4
.33 J4 .31*6
*May ................... “
*No. 2 white ..... “
.47*4
.29*4
Flour
Soft Patent........ per bbl. 6.65
5.75
"
8.95
7.65
Spring “ ........
Middling Cotton...per lb.
.1250 .1025
Hogs on hoof....... per cwt.12.70
9.50
* Nominal quotations.
___________ Close_____________
Aug. 16, 1937
Aug. 15, 1936
$
1.10*6
1.11*4
1.17*4
1.13
1.13
.98*6
.67%
.69*4
1.07
1.08
$
1.14*4
1.13%
1.11*6
1.18
1.19
1.11
.98*4
.9454
1.16
1.24
.28*6
-30*6
-31*6
.32
.46
5.75(3) 6.25
7.65@ 8.05
.1065
9.75@13.00
5.45@ 5.95
7.75@ 7.95
.1265
8.10@11.65
TRANSPORTATION
The St. Louis Terminal Railway Association,
wThich handles interchanges for 28 connecting lines,
interchanged 96,594 loads in July, against 90,918
loads in June and 93,659 loads in July, 1936.
During the first nine days of August the interchange
amounted to 27,937 loads, against 26,322 loads dur
ing the corresponding period in July and 27,029 loads
during the first nine days of August, 1936. Passen
ger traffic of the reporting roads in July increased
8 per cent in volume of revenue and 3.8 per cent in
tickets sold as compared with the same month a
year ago. For the entire country, loadings of rev
enue freight for the first 31 weeks this year, or to
July 31, totaled 22,740,194 cars, as against 20,156,643
cars for the corresponding period in 1936 and 17,980,898 cars in 1935.
Page 6
Estimated tonnage of the Federal Barge Line
between St. Louis and New Orleans in July was
155,800 tons, which compares with 155,335 tons in
June and 143,124 tons in July, 1936; cumulative ton
nage for the seven months was 958,580 tons, a de
crease of 66,545 tons, or 6.5 per cent under the first
seven months of 1936.
CONSUMPTION OF ELECTRICITY
Public utilities companies in six large cities of
the district report consumption of electric curent
by selected industrial customers in July as being 5.8
per cent greater than in June and 10.0 per cent more
than in July, 1936. Detailed figures follow :
(K .W .H . No. of
July,
1937
in thous.) Custom
ers
K .W .H .
3,680
Little Rock.. 35
2,377
10,510
2,112
743
28,605
June,
1937
K .W .H .
3,648
2,341
10,462
2,136
659
26,158
48,027
45,404
Totals.......398
July, 1937
comp, with
June, 1937
+ 0.9%
+ 1.5
+ 0.5
— 1.1
+ 12.7
+ 9.4
+
5.8
July, July, 1937
comp, with
1936
K .W .H . July, 1936
+ 18.8%
3,097
2,420
— 1.8
9,107
+ 15.4
1,919
+ 10.1
565
+31.5
26,538
+ 7.8
43,646
+ 10.0
BUILDING
The dollar value of permits issued for new con
struction in the five largest cities of the district in
July was 33.1 per cent smaller than in June and 44.8
per cent larger than the July, 1936, total. Accord
ing to statistics compiled by the F. W . Dodge Cor
poration, construction contracts let in the Eighth
Federal Reserve District in July amounted to
$17,054,000 which compares with $18,309,600 in
June and $26,143,600 in July, 1936. Building figures
for July follow :
New construction
Permits
Cost
1937
1936
1937
1936
Evansville....
17
57
$ 371 $ 121
Little Rock
21
36
29
18
110
80
555
477
Louisville....
276
170
270
252
212
766
501
256
(Cost in _
thousands)
July Totals 650
770
June
681
May
567
542
601
1,998
2,987
1,861
1,380
1,144
1,652
Repairs, etc.
Permits
Cost
1937 1936
1937
1936
155
118
$ 83 $129
35
99
57
31
24
111
81
149
204
170
149
76
179
186
231
188
684
815
962
656
673
682
624
549
1,403
491
408
276
LIFE INSURANCE
Sales of new, paid-for, ordinary life insurance in
states including the Eighth District during July
the preceding month, and a year ago, together with
the cumulative totals for the first seven months this
year and the comparable period in 1936 are shown
in the following table:
(In thousands
of dollars)
Arkansas..........$
Illinois..............
Indiana............
Kentucky....... .
Mississippi.......
Missouri...........
Tennessee........
July,
June,
July,
Cumulative Totals Cumul.
1937
1937
1936
1937
1936
change
3,861 $ 4,361 $ 4,239 $ 27,932 $ 26,838 + 4.1%
46,774
49,945
45,890
354,206 327,230 + 8.2
14,019
15,558
15,081
102,777
97,805 + 5.1
7,139
7,159
6,830
44,968
45,511 — 1.2
3,332
3,746
3,106
25,510
21,632 + 17.9
19,842
22,716
19,189
140,027
130,882 + 7.0
8,017
8,483
8,442
59,520
53,417 + 11.4
Totals........... 102,984
111,968
102,777
754,940
703,315 + 7.3
United States... 588,523
645,995
603,500 4,404,874 4,153,609 + 6.0
N ote: Figures have been revised to represent all insurance compa
nies in the U. S. Previous figures were for 54 companies which repre
sented 85% of insurance companies in U. S.
MONEY AND BANKING
Demand for credit from mercantile and indus
trial borrowers in the Eighth District during the
past thirty days underwent further moderate expan
sion, with improvement most noticeable in the chief
distributing centers. With virtual completion of the
winter wheat harvest and rapid movement of the
crop from farms, commitments of grain handlers
and flour milling interests have augmented and at
mid-August were in measurably larger volume than
a year earlier. In the typical wheat areas there has
been a considerable volume of liquidation, both with
country banks and merchants. This is true also of
sections where early fruits and vegetables are im
portant cash crops. Unusually heavy demands for
currency in the country for harvest purposes and in
the city for vacation spending and other seasonal
uses were reflected in the largely increased amount
of Federal reserve notes and other kinds of money
issued by this bank. Incident to the best prospects
for corn and other feed crops in recent years, there
has been a steadily broadening demand for funds
to purchase stocker and feeder cattle and hogs.
Member Banks—Total loans of reporting mem
ber banks in the principal cities increased 7.6 per
cent between July 14 and August 11, and on the
latter date were 21.5 per cent greater than a year
earlier, and, incidentally, the highest of the recovery
period. Gross deposits declined slightly and showed
little variation from levels obtaining during the same
period in 1936. Total reserve balances declined 8.3
per cent and on August 11 were approximately onefourth larger than on the corresponding report date
last year.
Statements of the principal resource and liabili
ty items of reporting member banks follow :
Aug. 11, July 14, Aug. 12,
(F or 24 banks— in
1936
1937
thousands of dollars)
1937
Loans— total .......................................................$306,899 $285,135 $252,673
Commercial, industrial, and agricultural:
On securities................................................ 54,381
45,018
Otherwise secured and unsecured........... 131,248
119,256
Open market paper.......................................... 11,044
10,797
7,045
Loans to brokers and dealers.......................
5,966
6,212
*
Other loans for purch. or carry, securities 12,566
12,640
43,168
Real estate loans.............................................. 45,554
45,411
7,372
Loans to banks................................................
8,308
8,184
Other loans:
On securities................... ............................ 11,905
11,938
25,679
Otherwise secured and unsecured........... 25,927
Investments— total ............................................ 364,891
366,638 394,876
U. S. Gov’ t obligations................................. 217,374
212,695 226,340
57,611
Obligations guaranteed by U. S. Gov’ t..... 46,294
50,882
Other securities................................................ 101,223
103,061 110,925
Gross deposits..................................................... 875,453
891,502 874,403
701,615 689,573
Demand deposits............................................. 685,109
Time deposits................................................... 190,344
189,887 184,830
Borrowings ............................................................................................
* Comparable figures not available.
Borrow
Gross
(B y cities,
Number Loans and Investments
ings
Deposits
Aug. 11, 1937) Banks Discounts in Securities
$549,852
St. Louis..................... 9
$183,101
$249,553
57,480
35,703127,017
Louisville ................... 5
41,900
49,556121,684
Memphis .....................3
10,538
13,268 36,385
Little Rock................. 4
13,880
16,811 40,515
Evansville ........ ..........3
The resources of these reportingmember banks comprise approxi
mately 63.6% of the resources of all member banks in this district.
Aggregate amount of savings deposits held by
selected member banks on August 4 was 0.2 per cent
larger than on July 7 and 5.5 per cent in excess of
the total on August 5, 1936.
Reflecting the improvement in demand for credit,
the trend of interest rates was slightly firmer. At
downtown St. Louis banks as of the week ending
August 14, rates charged were as follow s: Custom
ers’ prime commercial paper, \y2to 6 per cent; col
lateral loans, 2 to 6 per cent; interbank loans, 3y2
to 4 per cent; loans secured by warehouse receipts,
2 to 6 per cent and cattle loans, Ay2 to 6 per cent.
Federal Reserve Operations — Changes in the
principal assets and liabilities of this bank appear
in the following table:
Aug. 19,
(In thousands of dollars)
1937
Industrial advances under Sec. 13b...... .$
301
Other advances and rediscounts..............
396
Bills bought (including participations).
86
U. S. securities............................................ 111,385
July 19,
1937
$
323
191
86
111,385
Aug. 19,
1936
$
532
96
87
129,927
Total earning assets.............................. . 112,168
111,985
130,642
Total reserves ............................................ 285,436
Total deposits ........................................... , 211,970
F. R. Notes in circulation...................... . 180,045
293,430
219,722
179,688
238,543
191,441
170,107
1,045
1,745
Industrial commitments under Sec. 13b..
1,039
Activities in the currency, transit, collection,
custody, transfer, and fiscal agency departments of
this bank continue in large volume.
Following is a complete schedule of rates of this
bank for accommodations under the Federal Re
serve A ct:
(1) Rediscounts and advances to member banks, under
Section 13 and 13a....................................................... 2 % per annum
(2) Advances to member banks, under Section 10b...........2^2% per annum
(3) Rediscounts, purchases, and advances to member
banks, nonmember banks and other financing in
stitutions, under Section 13b:
(a) On portion for which financing institution
is obligated........................................................3 x
/ 2 % per annum
(b) On remaining portion....................................... 4 % per annum
(4) Commitments not exceeding six months to member
banks, nonmember banks and other financing in
stitutions, to rediscount, purchase, or make ad
vances, under Section 13b........................................... %% flat
(5) Advances to established industrial or commercial f 4 % to
/ i % per annum
businesses, under Section 13b................................. \ SJ
(6) Advances to individuals, firms and corporations,
including nonmember banks, secured by direct
obligations of United States under Section 13....... 4 % per annum
Debits to Individual Accounts — The following
comparative table of debits to individual accounts
reflects spending trends in this district:
(In thousands
of dollars)
Greenville,
Sedalia, Mo..
July,
1937
I Natl.
L$ 35,489
June,
1937
July,
1936
... 656,900
1,974
... 15,798
...
8,414
$ 36,012
5,163
34,698
10,637
4,261
1,677
37,509
187,279
113,073
5,691
8,628
9,277
670,660
2,043
16,187
7,339
$ 29,211
4,265
33,179
10,977
3,959
1,494
31,163
153,402
115,643
5,327
7,083
7,893
589,497
2,114
16,270
6,312
.1,120,918
1,150,134
1,017,789
... 40,530
... 11,524
...
4,678
...
1,577
... 34,488
... 170,452
... 109,696
6,134
...
8,980
July, 1937, comp, with
June, 1937 July, 1936
— 1.5%
+ 8.9
+ 16.8
+ 8.3
+ 9.8
— 6.0
— 8.1
— 9.0
— 3.0
+ 7.8
+ 4.1
— 6.6
— 2.1
— 3.4
— 2.4
+ 14.6
+ 21.5 %
+ 31.8
+22.2
+ 5*0
+ 18.2
+ 5.6
+ 10.7
+ 11.1
— 5.1
+ 15.1
+26.8
+ 9.8
+ 11.4
— 6.6
— 2.9
+33.3
— 2.5
+ 10.1
*Includes one bank in Texarkana, Texas, not in Eighth District.
(Completed August 24, 1937)
Page 7
N ATION AL SUMMARY OF BUSINESS CONDITIONS
B Y B O A R D O F G O V ERN ORS O F F E D E R A L R E S E R V E SYSTEM
Production and Employment — The Board’s seasonally ad
justed index of industrial production was 114 per cent of the 19231925 average in July, the same as in June and 4 points lower than
in March, April, and May. At steel mills, where output in June
had been curtailed by strikes, activity increased considerably in
the early part of July and was maintained at the higher level
between the middle of July and the third week of August. Lum
ber production also increased in July, while output of plate glass
showed a substantial decrease. Automobile assemblies declined
seasonally. Output of nondurable manufacturers decreased con
siderably, owing largely to a marked decline in activity at cotton
stores and variety stores showed slightly less than the seasonal
decrease in July, while mail order sales declined somewhat more
than seasonally. Freight-car loadings increased, reflecting in part
larger shipments of grains and forest products.
Commodity Prices — From the middle of July to the third
week of August prices of grains and cotton declined substantially,
while livestock and meats showed a further increase. Automobile
prices were raised by most producers, carpet prices advanced,
and there were increases in several industrial raw materials, in
cluding hides, zinc, lead, and steel scrap. Cotton goods and rubber
declined somewhat.
Index of physical volume of production, adjusted for seasonal variation,
1923-1925 average = 100.
By months, January, 1929, through July, 1937. Latest figure 114.
and woolen textile mills. Meat packing also declined, while flour
milling and sugar refining increased. At mines, output of anthra
cite was reduced in July, while output of most other minerals
showed little change.
Construction contracts awarded, as reported by the F. W.
Dodge Corporation, were maintained in July at the level reached
in June. Non-residential construction expanded further, reflecting
principally a large volume of awards for iron and steel plants and
for railroad projects. Residential building showed a seasonal de
cline.
Factory employment increased somewhat from the middle of
June to the middle of July, when a decline is usual, and factory
payrolls decreased less than seasonally. The largest increases in
employment were in the steel industry and in the food industries,
particularly at canning factories. Other manufacturing industries
as a group showed somewhat less than the usual seasonal decline.
Bank Credit— From the middle of July to August 4, excess
reserves of member banks were sharply reduced from $960,000,000
to $700,000,000, but subsequently they increased to $780,000,000
on August 18. These changes in member bank reserves reflected
principally fluctuations in the volume of treasury deposits at
Federal reserve banks, together with a seasonal increase in money
in circulation. Excess reserves at New York City banks declined
from $230,000,000 to about $40,000,000 and subsequently increased
to $130,000,000. Total loans and investments of reporting member
banks increased somewhat during the four weeks ending August
18, reflecting principally an increase of $150,000,000 in commercial
loans, offset in part by a further drop in holdings of U. S. Govern
ment obligations, principally at New York City banks. The growth
in commercial loans occurred both in New York City and in other
cities and included the purchase by banks of a large portion of the
$60,000,000 of 9-month notes sold by the Commodity Credit Cor
poration on August 2.
M E M B E R B A N K L O A N S AND IN V E S T M E N T S
BILLIONS OF DOLLARS
Agriculture — A cotton crop of 15,593,000 bales, representing
an increase of 3,200,000 bales over last season, was forecast by the
Department of Agriculture on the basis of August 1 conditions.
Official estimates indicate that other major crops will be consider
ably larger than last season and about equal to the average for
1928-1932. Preliminary estimates by the Department of Agricul
ture indicate that cash farm income, including Government pay
ments, will total $9,000,000,000 for the calendar year 1937. An
increase of 14 per cent over 1936.
Distribution — Distribution of commodities to consumers in
July continued at the level of other recent months, when allow
ance is made for the usual summer decline. Sales at department
8
DigitizedPage
for FRASER
BILLIONS OF DOLLARS
Wednesday figures for reporting member banks in 101 leading cities, September
5, 1934, through August 18, 1937.
Loans on real estate and loans to banks excluded.
Government deposits at reporting banks increased during the
period, reflecting purchases by banks of Treasury bills on a bookcredit basis. Bankers’ balances and other demand deposits showed
further declines at New York City banks.
Money Rates — Rates on Treasury bills declined slightly after
the middle of July, and open-market yields on Treasury notes and
bonds also declined until early in August, but later there was a
rise in yields. In the latter part of August discount rates were
reduced from 2 per cent to 1^2 per cent at the Federal reserve
banks of Atlanta, Chicago, and Minneapolis, the 2 per cent rates
had been in effect since early in 1935.
@FedFRASER