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BUSINESS CONDITIONS
Monthly Review of Agriculture, Industry, Trade and Finance
Released for Publication on Morning of August 30, 1939

FEDERAL

RESERVE

State Capitol, Indianapolis, Ind.

BANK

OF

ST*

LOUIS

SU M M AR Y OF EIGH TH D ISTRICT
Aug. 1, 1939, comp, with
1938
Av. 1923-38

Agriculture:
Estimated yield of 7 crops.................... — 2.4%— 6.0%

July, 1939, comp, with

Live Stock:
Jun e» 1939 Ju l? > 1938
Receipts at National Stock Yards— + 2.4% + 2.3%
Shipments from aforesaid Yards........+ 3 . 6
+ 4.5
Production and Distribution:
Sales by mfrs. and wholesalers..............+14.9
Department store sales..........................—20.9
Car loadings........................................... + 5.6

+ 5.8
+ 5.9
+ 5.9

Building and Construction:
-Du
• 1
/ Number —13.5
Bldg. permits, incl. repairs < Cogt
+56.7
Value construction contracts awarded.. +22.1

+ 18.1
+ 93.9
+ 47.5

Miscellaneous:
~
. i(
f Number...........+
Commercial failures | Liabilities....... _
Consumption of electricity...................+
Debits to individual accounts..............—
Life Insurance Sales............................. —

39.3 — 7.1
1 7 _ 32.o
2.0 + 12.6
6.6 + 8.2
12.2 — 1.4

Aug. 16, ’39, comp, with

19>

Member Banks (24):
Ju*y ’39 Aus-17>’38
Gross deposits........................................ + 0 .7%+ 9 7%
Loans...................................................... — 2.5 + 8.2
Investments............................................— 0.6 + 1.3

EN ERAL business activity in the Eighth
District during July and the first half of
August maintained, and in several impor­
tant lines bettered, the rate of the similar period
immediately preceding, which earlier period marked
the high point of the improvement beginning last
May. While a number of manufacturing classifica­
tions and retail trade in July showed the usual mid­
summer slump, the extent of the recession was
much less pronounced than is ordinarily the case,
and in certain lines, notably iron and steel, lumber
and petroleum, contraseasonal gains were recorded.
Industrial production as a whole in the area was
substantially greater in volume than a year ago.

G

The larger business volumes, coupled with welldefined improvement in sentiment among business
men and the general public, were reflected in freer
buying for future requirements by both retail and
wholesale merchants. While manufacturers are
still for the most part disposed to purchase raw
materials only as needed, declining inventories
have necessitated heavier current acquisitions in
order to accommodate customers’ orders. In a
majority of manufacturing lines investigated by
this bank, advances in unfilled orders were re­
ported. Aside from a decline in farm products
beginning in late May, prices as a whole developed
only minor changes during the past thirty days,
with the average measurably below a year and two
years earlier.
Output of bituminous coal in fields of this dis­
trict in July increased 14.6 per cent over the month
Page 2




before and was 8.5 per cent greater than the ton­
nage lifted in July, 1938. Production of crude oil
in June increased 3.3 per cent over May, and was
185.6 per cent larger than in June last year. Cumu­
lative production for the first half of this year was
46,663,000 barrels, as against 19,260,000 barrels for
the comparable period in 1938, the increase being
caused almost entirely by output of the newly
developed fields in Illinois.
July production of lumber increased about 4.5
per cent over June, and district mills continue to
report current orders and shipments in excess of
output. Consumption of electric power by indus­
trial users in the principal cities in July was 2.0 per
cent and 12.6 per cent greater, respectively, than
a month and a year earlier. At mills in this area,
output of steel ingots advanced to 57 per cent of
capacity at mid-August, the best rate since the
week of March 21, and comparing with 36 per cent
a year ago.
The volume of retail trade in the district in July,
as gauged by sales of department stores in the prin­
cipal cities, was about one-fifth less than in June,
but 5.9 per cent greater than in July, 1938; cumu­
lative total for the first seven months was 5.5
per cent in excess of the same interval last year.
Inventories as of August 1 were smaller by 1.9
per cent than on the same date a year earlier.
Taken as a whole, the employment situation
underwent little change from June to July. Fac­
tory employment increased slightly, contrary to the
usual seasonal experience, while completion of the
wheat harvest and other seasonal agricultural ac­
tivities resulted in a moderate decrease in the
number of workers employed on farms. Employ­
ment in the building trades and transportation held
about steady.
Eighth District agricultural prospects showed
little change during July, the U. S. Department of
Agriculture’s report based on August 1 conditions
tending to confirm earlier estimates for the prin­
cipal crops. Indications are for abundant feed and
forage crops, and fruit and vegetable yields are
mainly above average, though somewhat below a
year ago. Indicated yields of tobacco and hay are
somewhat larger than last year, with moderate
declines for corn, cotton, wheat and oats.
Commercial failures in the Eighth Federal Re­
serve District in July, according to Dun and Bradstreet, numbered 39, involving liabilities of $463,000,
as against 28 defaults with liabilities of $471,000 in
June and 42 failures for a total of $681,000 in July,
1938.

DETAILED SURVEY OF D ISTRICT
M A N U F A C T U R IN G

AND

Lines of Commodities
Data furnished by Bureau of Census,
U. S. Dept, of Commerce.
Boots and Shoes........................................
.........................................
Dry Goods
Electrical Supplies....................................
Furniture...................................................
Groceries...................................................
Hardware..................................................
Tobacco and its Products........................

W H O L E S A L IN G

Net Sales
July, 1939
compared with
June, ’39 July, '38
+112.0%
— 1.0
— 12.9
— 15.4
— 8.2
+ 14.2
— 3.1
— 0.8

- 3.6%
b 7.8
-21.0
-44.3
- 2.0
-15.5
b 4.4
-11.2

Stocks
July 31, 1939
comp, with
July 31,1938
—14.6%
— 1.7
+12.4
—11.5
— 0.7
+ 0.2
+ 8.4
+ 2.5

Upward trends in the wholesaling and jobbing
trade in this area, noted in the two months imme­
diately preceding, persisted during July, and re­
ports covering the first half of August indicate a
continuance of the betterment. With the exception
of boots and shoes, all lines whose statistics are
available to this bank, recorded gains over July a
year ago. Decreases reported from June to July
were seasonal in character, and in the case of dry
goods, electrical supplies and groceries, were
smaller than average during the past decade.
Inventories in a number of important classifica­
tions continued the steady decline of recent months.
However, the rate of shrinkage was more gradual,
and for all lines combined stocks as of July 31 were
slightly larger than a year earlier, for the first time
since January, 1938. The increase in sales of boots
and shoes from June to July, shown in the above
table, was seasonal, but materially larger than the
usual experience.
Automobiles— Combined passenger car, truck
and taxicab production in the United States in July
totaled 186,265, as against 309,720 in June and
141,437 in July, 1938.
Iron and Steel Products— Improvement in the
iron and steel industry in this district, noted in late
May and throughout June, continued during July
and the first half of August. Strong resistance was
opposed to the usual summer recession and resump­
tion of activities following the lull incident to
vacations, inventory taking, repairs, etc., was more
rapid than has been the case in a number of sea­
sons. Production of steel ingots in this area as of
mid-August was at 57 per cent of capacity, the
highest since the week of March 21, and comparing
with 45 per cent at the middle of July and 36 per
cent in the week of August 15, 1938. Rolling mill
schedules have been geared to about absorb current
ingot output in order to meet specifications on
sheet and strip sold during the short period of
lower prices last spring. Generally steel prices have
maintained the stronger tone which replaced weak­
ness earlier in the year. With the exception of a
rather sharp advance in scrap, prices of raw mate­
rials were unchanged from a month earlier.




Shipments of pig iron to users in the district and
the total melt during July were approximately
12 per cent and 8.5 per cent greater, respectively,
than in the preceding month. The movement dur­
ing the first half of August indicates a gain of about
10 per cent over the corresponding period in July.
The increase in the melt from June to July was
accounted for largely by steel mills, jobbing foun­
dries and manufacturers of machinery and other
specialties.
Business of warehouse and jobbing interests in
July showed a small contraseasonal increase over
June. These interests report a marked pickup in
purchasing by the general manufacturing trade,
also heavier ordering by the railroads of shop and
repair materials. Outlet through the building in­
dustry continues good, though the trend of new
lettings of structural steel was downward.
July production of pig iron for the entire country,
according to the magazine “ Steel” , was 2,356,036
tons, the largest since March, and comparing with
2,119,422 tons in June and 1,213,076 tons in July,
1938. Steel ingot production in the United States
in July totaled 3,288,949 tons, against 3,125,288
tons in June and 1,974,317 tons in July, 1938.
MINING AND OIL

Coal— Moderate improvement in demand for bi­
tuminous coal was noted during July, and the bet­
terment was carried farther forward in the first half
of August. Demand from industrial users has ex­
panded, and there is a disposition on the part of
certain interests to build up inventories, partly
occasioned by anticipation of higher prices to be
set by the National Bituminous Coal Commission.
In fields of this district, production of soft coal
in July was 14.6 per cent greater than in June and
8.5 per cent more than in July, 1938. Output for
the entire country in July, according to the Bitumi­
nous Coal Division of the U. S. Department of the
Interior, was 29,490,000 tons, which compares with
27.900.000 tons in June and 23,367,000 tons in July,
1938; cumulative tonnage to the end of July was
190.747.000 tons, as against 174,001,000 tons dur­
ing the first seven months of 1938.
At Illinois mines July output totaled 2,167,579
tons, against 1,739,719 tons in June and 2,192,384
tons in July a year ago. There were 77 mines in
operation in July, with 22,263 men on payrolls, as
against 74 active mines and 20,123 operatives in
June.
Page 3

Petroleum— June output of crude oil in states of
the Eighth District was 3.3 per cent more than in
May and 185.6 per cent greater than in June, 1938.
Cumulative total for the first six months this year
was 142.1 per cent in excess of the corresponding
period in 1938. Stocks on July 1 were 2.4 per cent
and 9.8 per cent greater, respectively, than a month
and a year earlier. Detailed production and stocks
by states are given in the following table:
,,
,
Production
of barrels? S
June* May» Junear '
1939
19391938
Arkansas................... 1,764
1,7191,272
Illinois....................... 7,083
6,849 1,462
Indiana............................ 90
7784
Kentucky..................
503
494i 487
9,1393,305
Totals.................... 9,440

Cumulative
1939
1938
9,764
8,308
33,715 7,856
402
444
2,752
2,652
46,633
19,260

Stocks
June,
June,
1939
1938
2,099
2,310
13,303 11,511
3,156
3,018
1,270
1,219
19,828 18,058

RETAIL TRADE
Department Stores—The trend of retail trade in
the Eighth District, as reflected in statistics of de­
partment stores in the principal cities which report
to this bank, is shown in the following comparative
statement:
Stocks
on Hand

____________Net Sales

Ft. Smith, A rk ....
Little Rock, Ark...
Louisville, K y .......
Memphis, T enn....
Pine Bluff, A rk ....
Quincy, 111.............
St. Louis, Mo........
Springfield, M o ....
All Other Cities....
8thF. R. District..

July, 1939
compared with
June, 1939 July, 1938
—14.4% — 2.4%
—16.7
+10.6
—23.1
+ 5.8
—19.3
+ 7 .7
—10.2
+29.9
—32.0
+ 5.7
—21.4
+ 4.9
—15.7
+ 8 .6
—20.4
+ 7.9
—20.9
+ 5.9

Stock
Turnover

Installment Excl. Instal.
Accounts
Accounts
38.0%
37.6
49.6
40.2

Quincy....................%
St. Louis........ 20.7
Other Cities.. 13.4
8th F.R. Dist. 18.9

__________ Net Sales__________

45.3%
55.4
47.3
49.6

Stocks
on Hand

Stock
Turnover

July, 1939
7 mos. 1939 July 31,1939 Jan. 1, to
compared with
to same
comp, with
July 31,
June, 1939 July, 1938 period 1938 July 31,1938 1939 1938
—40.9%
—36.3

+ 1 .5 %
+ 2.0

+ 5 .5 %
+ 1.5

— 3.0%
+ 0.8

1.53 1.31
4.26 4.13

Percentage of accounts and notes receivable out­
standing July 1, 1939, collected during July:
Men’s Furnishings................... 37.1%

Boots and Shoes..........................37.9%

TRANSPORTATION
According to officials of railroads operating in
this district, the volume of freight traffic handled
in July and the first half of August sharply ex­
tended the gains over 1938 recorded during earlier
months this year.
The St. Louis Terminal Railway Association,
which handles interchanges for 28 connecting lines,
Page 4




fell slightly below that of the same periods in 1938.
This represents the first unfavorable comparison of
consumption in 1939 with 1938.

Installment Excl. Instal.
Accounts
Accounts

Specialty Stores—July results in men’s furnish­
ings and boot and shoe lines are shown in the fol­
lowing table:

Men’s Furnishings...
Boots and Shoes....

For the entire country, loadings of revenue
freight for the first 31 weeks this year, or to August
5, totaled 18,553,284 cars, against 17,087,635 cars
for the comparable period in 1938 and 22,798,260
cars in 1937. Estimated tonnage of the Federal
Barge Line between St. Louis and New Orleans in
July was 177,300 tons, against 144,974 tons in June
and 228,937 tons in July, 1938; cumulative tonnage
for the first seven months this year was smaller by
345,080 tons, or 25.6 per cent, than for the same
period in 1938.

W H ISK EY
7 mos. 1939
July 31,1939Jan. 1, to
to same comp, withJuly 31,
period 1938
July 31,193819391938
Five out of Kentucky’s 60 distilleries are in
— 1.0% — 0.2%
1.53 1.55
operation, the same number as a month ago. A
+ 7 .8
+ 2 .0
1.80 1.59
+ 5.0
— 3.5
2.34 2.10
temporary strengthening in the price of three and
+ 8 .3
+ 3 .1
1.97 1.72
+21.1
+ 0.7
1.65 1.26
four year inspections has occurred, owing to a
+ 7.0
—14.0
2.21 1.71
+ 4.5
— 3.5
2.54 2.25
shortage of these grades by two leading producers.
+ 6 .2
+ 6 .2
1.83 1.62
+14.0
+ 2.4
1.89 1.62
It is reported that consumption in May and June
+ 5.5
— 1.9
2.32 2.05

Percentage of accounts and notes receivable out­
standing July 1, 1939, collected during July, by
cities:
Fort Smith...............%
Little R ock.... 14.2
Louisville........ 13.5
Memphis......... 23.1

interchanged 81,694 loads in July, as against 77,383
loads in June and 77,141 loads in July, 1938. Dur­
ing the first nine days of August the interchange
amounted to 21,995 loads, which compares with
22,125 loads during the corresponding period in
July and 21,392 loads during the first nine days of
August, 1938. Passenger traffic of the reporting
lines in July was 2.5 per cent less in number of
passengers carried and 3,6 per cent more in revenue
than during the same month a year ago.

AGRICULTURE

Combined receipts from the sale of principal
farm products and Government benefit payments
to farmers in states including the Eighth District
during the period January-June, .1937, 1938 and
1939, and during June, 1938 and 1939, are given
in the following table:
(In thousands
of dollars)
1939
Indiana........ $ 17,792
Illinois.........
31,795
Missouri.......
18,171
Kentucky__
8,606
Tennessee....
9,755
Mississippi...
4,847
Arkansas. . . .
7,327
Totals.......$ 98,293

June_____
1938
$ 20,030
37,513
20,187
8,324
7,677
6,466
5,007
$105,204

Cumulative for 6months
1937
1939
1938
$116,100
$122,062
$141,135
232,641
219,894
233,446
106,060
103,650
110,160
84,495
85,889
69,013
59,902
56,989
62,558
48,052
56,583
47,469
38,865
48,176
41,656
$737,947
$667,720
$679,128

General Farming Conditions— According to the
U. S. Department of Agriculture, agricultural de­
partments of the several states and other informed
sources, crop prospects in the Eighth District
underwent no marked changes during July, some
products showing moderate declines, while indi­
cated yields of others increased slightly. All crops
considered, production will be somewhat smaller
than a year ago, owing principally to smaller acre­

ages planted under the Government’s agricultural
program.
The season from planting to mid-August has
been in the main favorable for growth and develop­
ment of both field crops and fruits and vegetables.
Precipitation in July wTas scattered, ranging from
excessive in some areas to inadequate elsewhere.
In the principal winter wheat producing sections,
frequent rains delayed harvesting and resulted in
some damage to grain in the shock. Indications
are for ample feed and fodder crops to support the
generally increased numbers of livestock through­
out the district. Quite generally the oat crop was
short, but prospects for corn are the best in a num­
ber of years. In Illinois, the largest corn produc­
ing state, the August 1 condition was the highest
in 34 years, and of soy beans, the highest in 7 years.
During July and early August, prices of farm
products tended downward and the average con­
tinued measurably below that of the similar period
in late years. As of the week ended August 5, the
farm products group of the U. S. Department of
Labor Statistics index stood at 62.5 per cent of the
1926 average, which compares with 61.4 per cent a
week earlier; 64.1 per cent on July 8; 68.7 per cent
on August 6, 1938; 86.9 per cent on August 7, 1937;
83.2 per cent on August 8, 1936, and 79.7 per cent
on August 10, 1935.
Corn— Based on the August 1 condition, the
U. S. Department of Agriculture estimates the
Eighth District corn crop at 324,780,000 bushels, a
decrease of 2,664,000 bushels from the July 1 fore­
cast and comparing with 332,179,000 bushels har­
vested in 1938 and the 16-year (1923-1938) average
of 330,136,000 bushels. The carryover of corn is
one of the largest in recent years, and in states of
this district about 172,000,000 bushels above the
10-year (1928-1937) average.
Cotton— In its first production estimate of the
season, the U. S. Department of Agriculture places
the Eighth District crop at 3,223,000 bales. This
represents a decrease of 163,000 bales, or 4.8 per
cent, under the preceding year, and compares with
2,924,000 bales for the 16-year (1923-1938) average.
The indicated decrease in output under the 16-year
average is attributable entirely to smaller acreage
planted. The condition of the crop as of August 1
was generally high, and since that date further
betterment has taken place.
Demand
though in
high point
cotton has
stock than

for raw cotton has continued good,
early August prices declined from the
attained in July. Considerably more
been sold from the Government loan
was anticipated two or three months




back. In the St. Louis market the middling grade
ranged from 8.55$ to 9$ per pound between July 15
and August 15, closing at 8.55$ on the latter date,
which compares with 8.80$ on July 15 and 7.25$
on August 15, 1938. Combined receipts at Arkan­
sas and Missouri compresses from August 1 to
August 18 totaled 7,401 bales as against 11,784 bales
for the corresponding period a year earlier. Total
shipments during the same period amounted to
37,831 bales, as against 13,810 bales a year ago.
Stocks on hand as of August 18, however, were
546,705 bales larger than on the same date in 1938.
The Census Bureau reports that the cotton carry­
over at the beginning of the cotton year of 19391940, on August 1, was 13,032,611 running bales—
the largest quantity held at this time of the year
in the history of Government statistics. There was
a carryover of 11,533,439 bales a year ago and
4,498,848 bales two years ago. The average carry­
over in the 10 years, 1929-38, was 6.744,800 bales.
Fruits and Vegetables— In states including the
Eighth District the apple crop is estimated at
8.400.000 bushels, against 3,275,000 bushels last
year and the 10-year (1928-1937) average of
6.975.000 bushels; peaches, 9,406,000 bushels,
against 6,214,000 bushels in 1938 and 10-year aver­
age of 7,195,000 bushels; pears, 2,643,000 bushels,
against 1,784,000 bushels in 1938 and 10-year
average of 2,112,000 bushels; grapes, 39,940 tons,
against 23,730 tons in 1938 and 10-year average
of 34,768 tons; sweet potatoes, 20,205,000 bushels,
against 20,720,000 bushels in 1938 and 10-year
average of 18,413,000 bushels; peanuts, 34,700,000
pounds, against 32,490,000 pounds in 1938 and
10-year average of 31,481,000 pounds. In the dis­
trict proper the white potato crop is estimated at
12.212.000 bushels, against 13,978,000 bushels in
1938 and 16-year (1923-1938) average of 13,535,000
bushels.
Livestock— Reports from all sections of the dis­
trict indicate that the condition of livestock has
maintained the high average which marked pre­
vious months this year. Marketings of cattle and
hogs, while falling below June, were measurably
higher than a year ago. H og prices in the second
week of August declined to the lowest level since
1934.
The number of cattle on feed for market in the
Corn Belt States as of August 1 is estimated by
the U. S. Department of Agriculture as 16 per cent
larger than on the same date a year ago. The in­
crease was general over the entire area, with a
larger number on feed in all but one state. In states
of this district the lamb crop this year is estimated
Page 5

to be 0.4 per cent greater than a year ago, and
10 per cent larger than the 10-year (1928-1937)
average.
Receipts and shipments at St. Louis as reported
by the National Stock Yards were as follows:

Cattle and Calves.........
Hogs..............................
Horses and Mules..........
Sheep.............................
Totals.........................

_______ Receipts_______ ___ _______ Shipments______
July,
June,
July, July,
June,
July,
1939
19391938
1939
1939
1938
120,726 97,587 133,615 78,974 59,111
87,653
195,554 209,012 174,500 129,773 138,045
109,996
1,087 1,8891,391
958
1,732
1,157
110,568 109,342 108,697 36,472 38,739
36,828
427,935 417,830 418,203 246,177 237,627 235,634

Tobacco— The U. S. Government report based
on conditions as of August 1, indicates a slight
deterioration in the Eighth District tobacco crop
during July. Total yield is estimated at 254,467,000
pounds, a decrease of 2,176,000 pounds from the
July 1 forecast, and comparing with 241,254,000
pounds harvested in 1938 and the 16-year (19231938) average of 285,704,000 pounds. Ultimate
results will depend largely upon weather conditions
from this time to harvest. Recent rains have im­
proved the crop as a whole, but have caused some
damage in the lowlands and considerable destruc­
tion has been wrought by local hail storms. Open­
ing sales in the South, the Carolinas and Georgia,
have caused pessimistic predictions as to prices to
be paid for the 1938 crop in this district.
Stocks of leaf tobacco owned by dealers and
manufacturers in the United States and Puerto
Rico as of July 1, amounted to 2,135,856,000 pounds,
compared with 2,178,500,000 pounds on that date in
1938 and 2,367,193,000 pounds on April 1, 1939. In
the April 1 to July 1 period stocks decreased
24,000,000 pounds less than in the similar period a
year earlier.
COMMODITY PRICES

Range of prices in the St. Louis market between
July 15, 1939, and August 15, 1939, with closing
quotations on the latter date and on August 15,
1938, follows:

Winter Wheat— The Eighth District crop is
turning out better than anticipated, and despite
delays to harvest occasioned by frequent rains,
threshing of the crop is rapidly nearing completion.
The U. S. Department of Agriculture in its August
1 report places the district yield at 55,903,000
bushels, an increase of 3,860,000 bushels over the
July 1 forecast, and comparing with 66,081,000
bushels harvested in 1938 and the 16-year (19231938) average of 53,752,000 bushels.
BUILDING

The dollar value of permits issued for new con­
struction in the five largest cities of the district in
July was 72.5 per cent more than in June and 104.2
per cent greater than in July, 1938. According to
statistics compiled by the F. W . Dodge Corpora­
tion, construction contracts let in the Eighth Dis­
trict in July amounted to $20,961,000, which com­
pares with $17,171,000 in June and $14,214,000 in
July, 1938. Building figures for July follow:
New Construction
Permits
Cost
1939
1938
1939
1938
$ 134
24
$ 185
26
35
15
95
38
206
83
80
309
Louisville.
421
1,530
265
239
561
215
658
259
1,360
July Totals. . 668
573
2,777
1,610
1,738
June “
638
758
1,454
1,349
May “
784
624
(Cost in

Repairs, etc.
Permits
Cost
1939
1938
1939
1938
$ 29
120
77
$ 64
27
112
33
68
41
56
33
29
101
98
180
156
104
172
186
181
287
417
634
529
311
580
428
748
427
503
816
666

CONSUMPTION OF ELECTRICITY

Public utilities companies in six large cities of
the district report consumption of electric current
by selected industrial customers in July as being
2.0 per cent greater than in June and 12.6 per cent
more than in July, 1938. Detailed figures follow :
No. of
July,
(K.W.H.
Custom­
1939
K.W.H.
in thous.)
ers
3,444
Evansville .
40
Little Rock. ...
34
2,319
. . 82
9,175
Memphis
31
2,249
Pine Bluff
20
519
St. Louis
214
28,788
Totals. , .
421
46,494

June,
1939
K.W.H.
3,532
2,309
8,887
2,288
487
28,088
45,591

July,
1938
K.W.H.
2,559
2,264
7,994
1,805
597
25,975
41,194

July,1939
compared with
June,1939 July, 1938
+34.6%
- 2.5%
+ 0.4
+ 2.4
+ 3.2
+14.8
— 1.7
+24.6
—13.1
+ 6.6
+ 2.5
+10.8
+ 2.0
+12.6

LIFE INSURANCE
High
Wheat
*Sept................... . per bu.. .$ .63%
“
.64%
*Dec...................
“
*May..................
.64
“
.71
No. 2 red winter
“
No. 2 hard “
.69%
Corn
“
.42%
*Sept...................
.42%
*Dec...................
“
*May..................
.43
“
.46
No. 2 mixed___
“
No. 2 white......
.56
Oats
u
*Sept...................
.28
“
.28%
*Dec......... ..........
“
*May.................
.28%
“
.32
No. 2 white...... .
Flour
Soft patent....... .per bbl.... 5.00
*
Spring “ .......
5.55
Middling Cotton. .per lb ... . .0900
Hogs on H oof___ per cw t. . 6.63

Page 6




Low
$ .57%
.58%
•60%
.65%
.64

Close
Aug. 15, 1939
Aug. 15,1938
$

.61%
.61%
•61%
.68
.67

$

.62
.64%
.67
.63%
.63

.35%
.36%
.39%
.40
•51%

.40
.39
•42%
.44
.55

•50%
.47
.49%
.49
•51%

.24
.25%
.26%
.27%

.27%
•27%
•27%
•31%

.23
.23%
.25%
•25%

4.00
5.25
.0855
5.49

4.50 @ 5.00
5.25 @ 5.55
.0855
5.64

3.25 @ 3.55
5.15 @ 5.45
.0725
8.48

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 1938 are
shown in the following table:
June,
Cumulative
July,
July,
1939
1939
1938
1939
1938
$ 2,899 $ 2,821 $ 3,029 $ 23,673 $ 22,700
36,937
42,680
37,603
316,992
285,424
10,887
11,913
10,996
80,572
89,809
4,675
5,937
4,962
42,150
42,062
2,729
3,395
2,610
21,957
21,146
15,086
16,405
15,483
114,021
126,025
6,605
7,774
6,287
47,844
52,385
. $ 79,818 $ 90,925 $ 80,970 $ 672,991 $ 613,769
United States... $462,423 $524,925 $457,224 $3,853,088 $3,501,117
(In thousands
of dollars)

Cumul.
change
+ 4.3%
+11.1
+11.5
+ 0.2
+ 3.8
+10.5
+ 9.5
+ 9.6
+10.1

BANKING AND FINANCE

While continuing well above the similar period a
year ago, demand for credit in the Eighth District
during the past thirty days was generally quiet.
Requirements of merchants and manufacturers for
financing fall and early winter inventories increased
seasonally over the similar period immediately pre­
ceding, but, as has been the case for a number of
months, liquidation of loans was in considerable
volume, with the result that the total loans item at
commercial banks recorded a small decrease. A
number of banks reported expansion in demand for
funds from financing companies, also a steady in­
crease in business of their small loan departments.
Commitments of grain handling and flour milling
interests increased in less than expected volume,
owing partly to the policy of farmers to hold their
wheat stocks for higher prices, or place them in
the Government loan. Bankers’ dollar acceptances
outstanding in the Eighth District as of July 31
were 1.4 per cent less than a month earlier, but 36.6
per cent in excess of the total on July 31, 1938.
Member Banks— In the four-week period ended
August 16, total loans and investments of report­
ing member banks in the principal cities decreased
1.5 per cent, but at its end were still 4.3 per cent
higher than a year ago. There was a decline of
5.0 per cent in commercial, industrial and agricul­
tural loans during the period, occasioned in part
by the Commodity Credit Corporation taking over
cotton loans that were approaching maturity.
Gross deposits declined in late July, but turned
sharply upward in the second week of August, and
in that week excess reserves reached the highest
point of record.
Statement of the principal resource and liability
items of the reporting member banks follows:
Change from
Aug. 16,
Jul. 19,
Aug. 17,
1939
1939
1938
$178,118 — 9,282
+ 3,506
4,750 +
941
— 108
5,440 +
762
+
603
13,748 +
394
+ 1,043
50,842 +
467
+ 2,890
2,363 — 1,168
- 4,057
52,151 +
147
+19,530
2,462 — 4,213 )
49,345 +
593 V — 3,083
155,026 + 1,215 )
Obligations guaranteed by U. S. Government...
67,308 + 1,053
4- 4,191
101,188 — 1,078
+ 3,618
165,915 +17,999
+34,991
Demand deposits—adjusted*.......................
459,940 + 3,808
+46,096
Time deposits................................................
189,920 — 230
+ 4,124
U. S. Government deposits..........................
21,839 — 152
+ 6,896
Inter-bank deposits.......................................
299,116 + 2,577
+26,535
Borrowings..............................................................................................
(In thousands of dollars)
Commercial, industrial, and agricultural loans.
Open market paper............................................
Loans to brokers and dealers.............................
Other loans to purchase and carry securities. . .
Real estate loans................................................
Loans to banks...................................................
Other loans.........................................................
Treasury bills.....................................................

*Other than inter-bank and Government deposits, less cash items on hand or
in process of collection.
Above figures are for 24 member banks in St. Louis, Louisville, Memphis,
Little Rock and Evansville. Their resources comprise approximately 62.0% of
the resources of all member banks in this district.

No change worthy of note occurred in interest
rates, and at downtown St. Louis banks as of the




week ended August 15, rates were as follow s: Cus­
tomers’ prime commercial paper, 1% to 5% per
cent; collateral loans, 2 to 5% per cent; loans se­
cured by warehouse receipts, 2 to 5% per cent, and
interbank loans, 2 ^ to
per cent.
The aggregate amount of savings deposits held
by selected member banks on August 2 was 0.2 per
cent less than on July 5, but 2.7 per cent greater
than on August 3, 1938.
Federal Reserve Operations— The volume of the
major operations of the Federal Reserve Bank of
St. Louis, during July, 1939, is indicated below:
Amounts
(Incl. Louisville, Memphis, Little Rock branches)
Pieces
Checks (cash items) handled......................................
5,247,557 $1,141,584,161
90,642
Collections (non-cash items) handled.........................
37,859,668
Transfers of funds.........................................................
4,637
291,003,588
Currency received and counted...................................
7,966,057
25,175,616
1,100,854
Coin received and counted................. ........................ 10,420,285
Rediscounts, advances and commitments..................
7
297,387
New issues, redemptions, and exchanges of securi­
ties as fiscal agent of U. S. Gov’t., etc....................
14,200
16,320,228
Bills and securities in custody—coupons clipped.........
11,468

Changes in the principal assets and liabilities of
this bank appear in the following table:

. 112,581

Change from
July 19,
Aug. 19,
1939
—
1
— 132
—
10
—
21
-0-0 — 2,727
— 1,969
— 2,122
— 2,738

395,882
323,725
. 180,511

+16,465
+14,127
+ 1,282

Aug. 19,
1939
.$
18
119
2
. 112,442

(In thousands of dollars)
Industrial advances under Sec. 13b. . . .
Other advances and rediscounts..........
Bills bought (including participations).
U. S. securities......................................
Total earning assets.

F. R. Notes in circulation........................
Industrial commitments under Sec. 13b.
Ratio of reserve to deposit

430
. 78.5%

—
-

6
0.9%

+68,672
+60,253
+ 8,745
—

155

-3 .3 %

Following are the rates of this bank for accom­
modations under the Federal Reserve A c t :
(1) Rediscounts and advances to member banks, under
Sections 13 and 13a.........................................................................1 ^ % per annum
(2) Advances to m ember banks, under Section 10b.........................2 % per annum
(3) Rediscounts, purchases, and advances to m ember banks,
nonmember banks and other financing institutions
under Section 13b:
(a) On portion for which such institution is obligated........... 3 ^ % per annum
(b) On remaining portion..............................................................4 % per annum
(4) Commitments not exceeding six months to member
banks, nonmember banks and other financing institu­
tions, to rediscount, purchase, or make advances,
under Section 13b ................................................................ ...........
flat
(5) Advances to established industrial or commercial J 4 % to
businesses, under Section 13b................................................
\5M% per annum
(6) Advances to individuals, firms and corporations,
including nonmember banks, secured b y direct obliga­
tions 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)
East St. Louis and N at’lL
Stock Yards, 111. ..
$
El Dorado, A rk ........
Evansville, Ind....... .
Fort Smith, A rk ___
Greenville, Miss.
Helena, A rk .............
Little Rock, Ark. . . .
Louisville, K y .........
Memphis, Tenn.......
Owensboro, K y ....... .
Pine Bluff, A rk .........
Quincy, 111.................
St. Louis, M o............
Sedalia, M o...............
Springfield, M o.........
Texarkana, Ark.-Tex

(Completed August 23,1939)

July,
1939

June,
1939

July,
1938

Jul., 1939 comp.with
Jun., 1939 Jul., 1938

35,301 $ 38,274 $ 34,492 - 7.8%
5,177 — 7.6
5,025
5,438
28,975 + 4.8
32,004
30,536
10,060
10,386 + 5.9
10,658
3,761 + 0.2
4,054
4,044
1,294 — 5.7
1,401
1,486
30,822 + 3.3
42,641
41,291
142,067 — 1.1
156,947
158,624
93,305 —25.8
123,379
166,281
7,900
7,065
5,379 +11.8
7,302
6,801
6,647 + 7.4
7,179 — 4.6
7,884
8,261
547,020 — 4.9
558,027
586,740
1,755 — 5.8
2,035
1,916
13,467 — 0.2
14,545
14,576
6,904 + 4.5
6,624
6,340
$1,015,608 $1,087,852 $ 938,630 — 6.6

+ 2.3%
— 2.9
+10.5
+ 2.6
+ 7.8
+ 8.3
+38.3
+10.5
+32.2
+46.9
+ 9.9
+ 9.8
+ 2.0
+ 9.2
+ 8.0
— 4.1
+ 8.2
Page 7

NATIONAL SUM M ARY OF BUSINESS CONDITIONS
B Y BOARD OF GOVERNORS OF F E D E RA L R ESERVE SYSTEM
IN D U S T R IA L P R O D U C T IO N
PERCENT

PERCENT

Index of physical volume of production, adjusted for seasonal
variation, 1923-1925 average = 100. By months, January, 1934,
to July, 1939, Latest figure 102.

F R E IG H T - C A R

L O A D IN G S

Index of total loadings of revenue freight, adjusted for seasonal
variation, 1923-1925 average = 100. By months, January, 1934, to
July, 1939. Latest figure 69.

W HOLESALE

P R IC E S

Indexes compiled by the United States Bureau of Labor Statistics,
1926 = 100. By weeks, 1934 to week ending August 12, 1939.

MEMBER

BANK R E S E R V E S

Wednesday figures of total member bank reserve balances at
Federal Reserve banks, with estimates of required and excess
reserves, January 3, 1934, to August 16, 1939.
Page 8




In July industrial activity, seasonally adjusted, rose sharply and
was close to the level reached last December. Prices of some indus­
trial materials increased in recent weeks while those for agricultural
products continued to decline.
Production—The Board’s index of industrial production, according
t<> preliminary returns, advanced to 102 per cent of the 1923-1925
average in July as compared with 98 in June and 92 in April and
]\Jjay. The advance in July reflected chiefly a considerable further
increase in output of iron and steel, which usually declines at this
season. Steel ingot production rose from an average rate of 52 per
cent of capacity in June to 57 per cent in July, and in the first three
weeks of August was maintained around 60 per cent, about the usual
seasonal increase. Lumber production showed little change in July,
although a decline is usual.
In the automobile industry output showed a sharp seasonal cur­
tailment during July and the first half of August, reflecting prepara­
tions for the shift to new model production which will be made
about a month earlier this year than in other recent years. Retail
sales of new cars continued in excess of production and dealers’
stocks were greatly reduced. Plate glass production declined sharply
in July, following a substantial increase in June.
Changes in output of nondurable manufactures in July were largely
of a seasonal nature. At cotton textile mills and meat-packing estab­
lishments activity showed somewhat less than the usual declines
and at sugar refineries output increased from the low level reached
in June. Flour production continued in substantial volume. Min­
eral production expanded further in July, as output of bitumi­
nous coal continued to increase and petroleum production, which had
been reduced in June, rose sharply. On August 14 the Texas Rail­
road Commission ordered a shutdown of Texas oil wells for 15 days,
beginning August 15, and subsequently similar shutdowns were
ordered in several other important oil producing states.
Value of construction contracts, as reported by the F. W. Dodge
Corporation, increased somewhat in July, owing principally to a
small rise in contracts for public projects. Awards for residential
work, both public and private, were practically unchanged from the
June total.
Employment—Factory employment, which usually declines in July,
was maintained this year at about the June level and payrolls showed
a less than seasonal decrease, according to reports from a number of
leading industrial states.
Distribution—Sales at department and variety stores in July
showed about the customary seasonal decline. In the first half of
August department store sales increased. Freight-car loadings in­
creased further from June to July. Loadings of coal continued to
expand and shipments of miscellaneous freight, which usually decline
at this season, showed little change.
Commodity Prices—Prices of most farm products and foods de­
clined from the beginning of July to the middle of August. Some
industrial materials, principally steel scrap, nonferrous metals, and
textile fabrics, showed advances in this period, while crude petroleum
prices were reduced.
Agriculture—On August 1 prospects for major crops were about
the same as a month earlier, according to the Department of Agri­
culture. The first official estimate on cotton indicated a crop of
11,400,000 bales, somewhat smaller than last year's crop and 2,400,000
bales less than the 1928-37 average. World carryover of American
cotton, however, was estimated to have been somewhat larger on
August 1 than the record volume of a year ago.
Bank Credit—Total loans and investments of member banks in
101 leading cities increased substantially during the four weeks end­
ing August 9, reflecting chiefly increases in holdings of United States
Government obligations and the purchase by New York banks of
a large share of a new issue of New York State short-term notes.
Commercial loans continued to increase at New York banks, but
declined at banks in 100 other leading cities as corn and cotton loans
that were approaching maturity were taken over by the Commodity
Credit Corporation in accordance with a standing agreement. De­
posits at reporting banks remained at high levels.
Excess reserves of member banks increased further to new high
levels in the latter part of July and the first half of August, owing
principally to gold imports and net Treasury disbursements, partly
offset by a reduction in Federal Reserve bank holdings of Treasury
bills.
Money Rates—The average rate on new issues of 90-day Treasury
bills has increased slightly in recent weeks and on August 16 was
0.032 per cent. Prices of Treasury bonds showed little change from
the middle of July to the middle of August.