The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FEDERAL RESERVE BANK OF ST. LOUIS MONTHLY REVIEW OF BUSINESS CONDITIONS IN EIGHTH DISTRICT Released for Publication On and After the Morning of August 31, 1925 WILLIAM McC. MARTIN Chairman of the Board and Federal Reserve Agent U R T H E R improvement in business as a whole and increasing confidence in prospects for fall and winter trade were the outstanding features in reports of leading interests in virtually all lines covering activities during the past thirty days. In most lines investigated the volume of sales was larger than during the corresponding period a year ago, and in some gains, over the preceding month this year were indicated. F The principal influence affecting actual distribu tion of commodities and the improved sentiment was the increased purchasing power in the country based on good crops and high prices being realized for them. Stress is laid upon the more prosperous condition of farmers than at any similar period in a number of years. W hile there is still a disposition to clean up their old indebtedness before making new commitments, agriculturists will still have enough left from the proceeds of their crops to fill many long deferred wants for commodities of all kinds. The improved position of farmers is already reflected in heavily augmented sales of implements, stoves, vehicles and other goods used largely in the country. In the main weather was favorable for the movement of seasonal merchandise, particularly ap parel. In the retail section of distribution the v ol ume of goods in this category was heavily a u g mented by special sales, response to which was re ported well up to expectations. W holesalers and jobbers in the large centers report that the market season, beginning in late July and running through the first half of August, was the m ost successful in recent years, both in point of the number of visiting buyers and the volume and character of their pur chasing. Production in the steel industry in the district was slightly larger than during the preced ing thirty days, and new orders booked also showed a small gain. Sales of automobiles were larger than a year ago, and the recent high level of activity in the building industry was maintained. The employment situation developed no marked changes as contrasted with the preceding thirty days. In the chief industrial centers a number of plants which had been down for inventory and re pairs resumed operations, and some of the active plants added to their working forces. A slight re duction in the number of idle workers in the coal fields was affected by the reopening of several mines and increased schedules at active pits. Full employ ment was reported in the lead and zinc mines and in the cement and quarrying industries. Completion of the wheat harvest was reflected in the usual sea sonal decrease in employment among farm laborers, and decreases were also reported in the lumber mill ing industry. Gains were reported in railroad shops and in glass, clay products and kindred industries. Conditions in the bituminous coal trade, while still far from satisfactory, showed improving ten dencies. The volume of inquiries from all classes of consumers is increasing and in a number of sections a slight expansion in production is reported. Dom es tic coals from the Illinois and Indiana fields were more active than at any time in months, and many mines were able to clear their tracks for the first time since last winter. Generally prepared coal is m oving better, and the demand for steaming sizes has been sufficiently large to halt the downward trend in prices. Since the first of August dealers report decided improvement in purchasing by house holders, and in turn the former are increasing their commitments with the mines. The movement of railroad tonnage is satisfactory, but industries are backward about storing against fall and winter re quirements. Production of bituminous coal for the country as a whole for the calendar year to August 8 was 285,493,000 tons, against 274,615,000 tons for the corresponding period in 1924 and 339,575,000 tons in 1923. Freight traffic of railroads operating in the district continues at the high levels recorded in recent months, with the movement of merchandise, grain and farm products generally making an especially favorable showing. For the country as a whole loading’s of revenue freight for the first thirty weeks of the year, or to July 25, totaled 28,185,452 cars, against 26,710,061 cars for the same period in 1924 and 27,946,237 cars in 1923. Total loadings for the week ended August 1 were 1,043,063, the third time they have reached the million mark this year, and representing a gain of 97,450 cars over the corresponding week in 1924. The St. Louis T er minal Railway Association, which handles inter changes for 28 connecting lines, interchanged 209,613 loads in July, against 198,277 loads in June and 181,825 loads during July, 1924. During the first 9 days of August 58,826 loads were interchanged, against 56,945 loads during the first 9 days of July and 59,706 loads during the corresponding period in 1924. Passenger traffic of the reporting roads de creased 1 per cent during July as compared with the same month a year ago. Estimated tonnage of the Federal Barge Line between St. Louis and New Orleans during July was 79,000 tons, against 75,283 tons in June and 70,387 tons in July, 1924. Collections during July, while showing slightly less efficiency than during the preceding month, were in the main satisfactory, and considerably ahead of those of the same month a year ago. Set tlements with wholesalers in the large centers were well up to expectations, particularly in the dry goods, hardware and shoe industries. Retailers re port some delay in payments because of the absence of customers on vacations. Answers to 443 ques tionnaires addressed to representative lines through out the district showed the follow ing results: Excellent July, 1925..................... 3.5% June, 1925..................... 6.7 July, 1924.,................... 3.1 Good 35.6% 32.9 31.3 Fair 50.5% 53.3 58.3 Poor 104% 7.1 7.3 Commercial failures in the Eighth Federal Reserve District during July, according to Dun’s, numbered 60, involving liabilities of $940,025, against 86 defaults in June with indebtedness of $883,277, and 64 failures for $579,643 in July, 1924. The per capita circulation of the United States on August 1, 1925, was $41.31, against $41.49 on July 1, and $41.36 on August 1, 1924. 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 — Production for the country as a whole decreased 0.8 per cent in July as compared with June but was 49.2 per cent larger than in July, 1924. Manufacturers reporting direct or through the National Autom obile Chamber of Commerce built 357,830 cars in July against 364,731 in June and 241,309 in July, 1924. The output of trucks in July was 40,493 against 36,846 in June and 25,630 in July, 1924. W hile distribution of automobiles during the period under review declined slightly as compared with the preceding month, large gains were record ed over the corresponding period a year ago. An outstanding feature of the month’s business was the heavy sales in the country, where purchasing power of agriculturists has been materially bettered by good crops and the high prices received for them. A s usual at this season, dealers in the large cities report sales of medium priced and cheap makes relatively larger than the more expensive cars. Stocks of new cars in dealers’ hands, with but few exceptions, are being maintained at the low levels which have prevailed during the past several months. Further slight improvement was noted in the used car situation, the number of salable vehi cles held at the end of July being below that of a month earlier, and materially under that on July 31, 1924. Sales of new cars by 320 dealers scattered through the district during July were 3.7 per cent less than during May, but 9.4 per cent larger than during July, 1924. Business in parts and acces sories is holding up well, and the tire situation is reported more satisfactory than at any time this year. Sales of trucks and busses are showing steady expansion, and the tractor business is well ahead of the corresponding period a year ago. Reductions in prices of passenger cars were announced by sev eral of the leading manufacturers. Boots and Shoes — Sales of the 11 reporting interests during July were 15.6 per cent smaller than for the same month in 1924, and 34.9 per cent under the June total this year. The decline under a year ago was accounted for chiefly by smaller future orders while the decrease shown in the month to month comparison was due to seasonal considerations. Since August 1 orders received from salesmen on the road have been in large volume, with two of the leading interests reporting the heaviest prompt shipment business booked at this time in more than three years. The demand extends well through the entire line, with men’s wear more active than sixty days ago. Prices on finished goods are steady, with the trend in raw materials slightly firmer. Stocks of the reporting firms on July 31 were 11.9 per cent larger than on the corresponding date in 1924, and 0.2 per cent larger than on June 30 this year. Factory operation was at from 85 per cent to 100 per cent of capacity. Clothing — The large influx of buyers at lead ing jobbing centers has had a stimulating effect on all lines of clothing. Orders placed for late fall and winter wear have been in the main satisfactory. There is more of a disposition to turn to the better grades of w oolen and worsted goods, though any attempt at price advancing meets with resistance. W hile ordering of the more staple lines is som e what better than a year ago, there is still great stress laid on novelties and styled goods, both in w om en’s and men's garments. Children’s school suits and dresses for fall and winter are in excel lent demand, two leading interests reporting large increases in sales of these lines over the same period a year ago. Ready-to-wear dresses in rayon and worsted mixtures are receiving good call. Drugs and Chemicals — A s contrasted with the same month last year, July sales of the 11 reporting interests showed an increase of 1.4 per cent, but the total was 4.1 per cent smaller than in June this year. Since August 1 there has been a general picking up in all departments of the line, with im provement particularly noticeable in heavy chemi cals used by manufacturers. A s was the case dur ing the preceding two or three months, a feature of the business of jobbers has been the unusually heavy sales of soda fountain supplies and equip ment. D rug and chemical prices were about steady on the average with the preceding thirty days, ad vances balancing declines. D ry Goods — A ctivity and good gains over a year ago featured this line during the period under review. The market season, beginning in late July and running through the first half of August was the most successful in recent years, both in point of numbers of visiting buyers at the large centers and goods purchased by them. Marked im prove ment was reported in future business, orders in this category ranging from 10 to 25 per cent larger than a year ago. A ctivity extends well through the line, but with novelties and styled goods in relatively better demand than staple materials. Knitted goods and ready-to-wear clothing are m ov ing in satisfactory volume. Prices showed no marked change as compared with thirty days ago, but the decline in raw cotton caused an easier tone in certain fabrics based on that staple. Sales of the 11 reporting stores in July were 13.1 per cent larger than for the same month in 1924, and 2.4 per cent in excess of the June total this year. Electrical Supplies— July sales of the 12 report ing interests were 53.5 per cent larger than for the same month in 1924, but 2.7 per cent under the preceding month this year. The smaller sales total in July than in June is accounted for partly by the end of the fan season. Gains over last year were chiefly in radio materials and pole and line hardware and sub-station equipment. The demand for small motors continues active, and there is an excellent call for household appliances, particularly electric ranges. Except for advances in rubber covered wire and some varieties of line hardware, prices were steady. Flour — Production by the 11 leading mills of the district during July was 286,250 barrels, the largest since last January, and comparing with 226,800 in June and 272,300 in July, 1924. The m ill ing business during the past six weeks has devel oped marked improvement. A majority of the re porting mills were booking orders well in excess of their capacity, and shipping directions were the most satisfactory so far this year. Prices were ad vanced in sympathy with the upturn in cash wheat, the higher levels affecting all grades and descrip tions. Business, however, was confined almost ex clusively to the domestic trade, with most orders specifying shipment over the next sixty days. A small volume of export business with Latin-American countries was transacted, but virtually nothing was sold to Europe. Furniture — Although still chiefly on a neces sity basis, dealers’ orders are gradually increasing in size, and generally the line developed im prove ment as contrasted with the preceding thirty days. Bedroom suites and household furniture generally are more active than heretofore, and there is an ex cellent demand for seating equipment for theaters. Orders for school furniture were slightly larger than at the same time last year. Prices showed no change during the month, but were approximate ly 5 per cent lower than a year ago on staple lines. Sales of the 25 reporting interests in July were 19.3 per cent larger than for the same month in 1924, and 0.8 per cent above the June total this year. Stocks on July 31 were 1.2 per cent smaller than those of June 30 and 7.4 per cent smaller than on July 31, 1924. Groceries — Better crop prospects and im prove ment in general business were mentioned as the chief influences in causing an increase in July sales of the 22 reporting interests of 4.7 per cent as com pared with the same month in 1924, and of 9.2 per cent over the June total this year. Stocks in retail ers’ hands continue of moderate proportions, and buying is chiefly on an immediate shipment basis. The demand for sugar for preserving and manu facturing fruit juices is on a large scale, and gen erally staples are being well taken. The movement of canned goods is satisfactory. Sales of candies and beverages were reported better than the sea sonal average. Stocks of the reporting stores on July 31 were 30.7 per cent larger than thirty days earlier, and 5.9 per cent larger than on the same date in 1924. Hardware — The steady improvement in this line noted in recent months has continued, July sales of the 12 reporting interests being 10.1 per cent larger than for the corresponding month in 1924, and 3.4 per cent in excess of the June total this year. The better feeling in the rural districts is being reflected in heavier purchasing of all varieties of farm supplies. Implements and automobile ac cessories are particularly active. The demand for preserving equipment is reported the best in sev eral years, and there is an excellent call for camp ing and tourist goods and hunters' supplies. Stocks of the reporting firms on July 31 were 19.2 per cent larger than a year ago, but 5.6 per cent under those of June 30 this year. Iron and Steel Products — Bookings of both finished and semi-finished iron and steel goods developed quite decided improvement during the period under review as contrasted with the preced ing thirty days. Production at mills and machine shops was increased, with a number of important plants which had been dow n for inventory and re pairs having resumed operations. Job foundries and the stove shops increased their w orking time, and manufacturers of farm implements report a substan tial volume of bookings for fall delivery. W hile the demand from the railroads continues sluggish, there was a little more interest shown b y the carriers dur ing the first weeks of August, and inquiries received indicate that buying may be resumed in the near future. The outlet for all varieties of materials through the building industry continues broad, with the movement of structural shapes and reinforcing concrete bars especially heavy. Machine and engine builders are busy, tw o of the major interests operat ing full time and having advance orders sufficient to maintain the present pace through October. Bookings of steel bars and plates were in satisfac tory volume, and there is a good call for all varie ties of oil country goods. Prices generally were unchanged as compared with a month ago, but the trend was firmer. Production o f pig iron on a daily average for the country as a whole during July was smaller by only 3.7 per cent than in June, compared with declines of 5.6 per cent in June, 11.7 per cent in May and 20 per cent in April. Steel ingot pro duction showed a rather sharp decline, and was the smallest for any month since last September. B uy ing of pig iron was more active than heretofore, with prices 50c to $1 higher than thirty days ago. Scrap iron and steel prices were higher. Lum ber— Light stocks in consumers’ hands and a slight broadening in demand from most classes of consumers was reflected in a firmer price trend in both hard and soft woods. In yellow pine a scarcity of certain items has developed, and ship ments of the mills are in excess of current produc tion. Lath is particularly scarce, and has been for a number of weeks. Furniture manufacturers have increased their takings, and there is a continued active demand from the automotive industry. B uy ing by the railroads, while somewhat better than thirty days ago, is still disappointing. The outlet through the building industry continues broad, and some improvement is reported in general lumber purchasing in the rural districts. R E T A IL T R A D E The condition of retail trade is reflected in the follow ing comparative statement showing activities at department stores in leading cities of the district: Stocks on hand Net sales comparisons July, 1925 Seven months ending July 31, 1925 comp, to July 31, 1925, to comp, to July, 1924 same period, 1924 July 31, 1924 — 11.2% — 2.7% Evansville ....— 3.9% — 6.5 + 7.5 Little Rock..-)- 7.8 — 15.8 — 2.4 Louisville ....+ 1-5 + 9.9 + 6.5 — 7.4 — 0.8 + 3.2 + 3.9 — 17.8 Springfield .. + 10.2 + 0.6 8th District.. + 5.0 + 3.4 + 0.4 Stock turnover January 1, to July 31, 1924 1925 116.1 110.5 149.3 135.7 190.0 168.5 129.1 136.0 126.6 134.9 178.9 182.9 86.8 70.7 163.9 171.5 C O N S U M P T IO N O F E L E C T R IC IT Y Gains in consumption of electric power by in dustrial customers of public utilities companies in the five largest cities of the district which have fea tured records of recent months were continued during July. Detailed figures follow : July, 1925 June, No. of July, comp, to 1925 1925 custom *K.W.H. *K.W.H. June, 1925 ers 1,116 1,081 + 3.2% Evansville ....40 + 6.5 1,309 1,394 Little Rock....35 + 6.2 4,969 4,681 Louisville .....67 —20.9 1,097 1,386 + 4.4 15,514 16,191 Totals.....261 24,767 23,971 *In thousands (000 omitted). + 3.2 July, July, 1925 comp, to 1924 *K.W.H. July, 1924 + 15.8% 963 + 13.6 1,227 +36.8 3,633 1,053 + 4.2 13,623 + 18.9 20,499 +20.8 The follow ing figures, compiled by the Depart ment of the Interior, show kilowatt production both for lighting and industrial purposes for the country as a w hole: By water power By fuels June, 1925....................... ...1,848,366,000 3,355,606,000 May, 1925..........................2,025,425,000 3,163,764,000 June, 1924..........................1,765,211,000 2,183,877,000 Totals 5,203,972,06b 5,189,189,000 4,579,088,000 A G R IC U L T U R E W eather during the period under review was too hot and dry for best results in agriculture in this district, but as contrasted with other sections of the country relatively little irreparable damage was w rought and taken as a whole the good pros pects of the preceding thirty days were fairly well maintained. Since A ugust 1 there have been gener al, soaking rains which have served to materially strengthen the condition of late crops, particularly corn, legumes, tobacco, and potatoes. The abundant precipitation also had the effect of putting the soil in excellent condition for early plowing, besides benefiting pastures and restoring depleted sources of water for live stock. W heat — Little change was made in wheat yields in States of the district during July. Harvest ing of winter wheat has been generally completed, except in limited areas where it has been stacked. In Missouri, Illinois and Indiana yields are for the most part equal to or better than early estimates, with quality in many important grow ing sections several points above last year. A s noted in the preceding issue of this report, there is a disposition of farmers to hold their grain for a higher price, but the sharp advance in prices during the second week of August resulted in an increased movement from farms. T he estimated outturn of all wheat for this district is 63,324,000 bushels, against 53,394,000 bushels harvested in 1924. For the country as a whole the estimate as of A ugust 1 was 678,000,000 bushels, or about 1,000,000 bushels below the July 1 indication, and com paring with 873,000,000 bush els harvested last year. Corn — Conditions of corn throughout the d is trict were unusually irregular, not only in the differ ent States, but frequently within the same county. In Indiana and Illinois, the latter the m ost import ant corn State of the district, prospects improved in July, while in all other States there was more or less deterioration. In all States, however, the indi cated yields are considerably higher than a year ago. A lm ost universally early corn was injured by lack of moisture, with serious damage reported in the uplands and where the soil is thin. Bottom lands suffered relatively little injury, and throughout the month local showers relieved the dryness in scat tered sections. Drenching rains were general over the chief corn producing sections during early August, affording relief from the long dry spell and materially helping prospects for the crop as a whole. The estimated yield of corn for the district, based on the August 1 report is 429,748,000 bushels, against 346,256,000 bushels harvested last year. For the entire country a crop of 2,950,340,000 bushels is estimated, against an outturn of 2,436,513,000 bushels in 1924. Fruits and Vegetables — Rather spotted and irregular conditions prevail in the principal fruit and vegetable crops of the district. As was the case in grains, drought was the chief factor in the small crops, though the effects of the late frosts and insect damage are showing up in harvest results. Early potatoes were a disappointment and the late planted crop has suffered from the drought, with the result that the total yield for the district is placed at only 14.479.000 bushels, against 20,930,000 bushels har vested last year. In Tennessee and Mississippi sweet potatoes will yield approximately the same as a year ago. In Illinois apples are a larger crop than last year, but smaller in other States. Peaches in the South are turning out better than expected, but in the northern stretches of the district this crop was a virtual failure. For the country as a whole the apple crop is expected to be the smallest since 1921, the indicated total of 161,000,000 bushels being 10 per cent less than harvested in 1924. The condition of grapes was somewhat higher on August 1 than a month earlier, and due to the large number of new vineyards com ing into bearing, the output will considerably exceed that of last year. Gardens suffered severely during July, but were greatly bene fited by the precipitation in early August. Live Stock — The condition of live stock con tinues excellent, the only adverse reports being ol loss of weight in certain sections due to scant pas turage and scarcity of water. W ith betterment in prospects for corn, the demand for stocker and feed er cattle has broadened and prices advanced. During the period under review choice heavy steers reached the highest prices since 1920. Some improvement has taken place in the condition of pastures in the im mediate past, but the hay crop is universally short, the total output for the district being estimated at 6.231.000 tons, against 8,719,000 tons last year. Receipts and shipments at St. Louis, reported by the National Stock Yards, were as follow s: Receipts July, June, July, 1925 1925 1924 Cattle and Calves....l48,080 118,000 126,188 Hogs ..........................241,523 264,000 319,172 Horses and Mules.... 1,845 1,000 2,372 Sheep ........................ 80,334 87,000 76,334 Shipments July, June, July, 1925 _ 1925 1924 94,492~ 67,000 78,788 152,490 181,000 201,465 2,036 1,000 1,797 21,724 19,000 14,317 Cotton — Prospects for cotton in States of this district were well maintained during the period under review, the Department of Agriculture report as of August 1 showing a higher condition than thirty days earlier for all States except Mississippi, where a recession of two points was recorded. As compared with a year ago the condition for all States was higher, and the average on August 1 this year was 83.5 per cent against 69.7 per cent on the same date in 1924. In Arkansas, the chief cot ton State of the district, the crop improved every where, due to timely rains, except portions of the South Central and southeastern districts. Fruiting is heavy and the plant has an excellent stand. Boll weevils are being reported from a greater number of points, but damage is not material except in a few counties. In Missouri, with an August 1 con dition of 84 per cent and 503,000 acres in cultivation, indications are for a yield of 269 pounds to the acre, or the largest output on record. Rice — This crop improved materially in late July and early A ugust under abundant rainfall, which in many sections obviated the necessity of artificial irrigation. As a rule the crop is in unusu ally healthy condition. Some fields were seriously injured prior to the recent rains, and will not make a full yield. There were also some complaints of excessive growth of weeds and grasses. Generally the crop is tw o weeks early. The demand contin ues active, and initial sales of new Louisiana rice indicate the highest prices for this year’s crop that have been realized since 1919. T obacco — The condition of tobacco in July went backward, Kentucky showing a loss of 2 points and Tennessee 9 points, while no change was recorded in Indiana. Based on the August 1 condi tion, total production for the district is estimated at 320,869,000 pounds, against 338,335,000 pounds harvested in 1924. Generally conditions are spotted, there being many poor stands due to drought in May and June and late plantings. As a result the crop varies from poor to excellent. Relatively the best conditions prevail in the western dark fired, or Paducah area, where an average of 83 per cent is reported. Recent precipitation has benefited all districts, and late planted weed is growing well with indications that it will make a good crop of tobacco with body. Com m odity Prices — Range of prices in the St. Louis market between July 15, 1925, and August 15, 1925, with closing quotations on the latter date and on A ugust 15, 1924: ___________ * Close W heat H igh L ow A ug, 15, 1925 A ug. 15, 1924 Septem ber .........per bu.$1.68% $1.46% $1.60 $1.2934 D ecem ber .......... “ 1.66% 1.4954 1.58% 1.3454 M ay ..................... “ 1.67y2 1.52J4 1.62 1.3934 N o. 2 red winter “ 1.77 1.57 $1.72 @ 1.74 $1.37 @ 1.42 N o. 2 hard........... “ 1.74 1.50*4 1.60 @ 1.61 1.28 @ 1.30 Corn Septem ber .......... “ 1.07 1.0134 1.03*6 1.20 D ecem ber .......... “ .8954 .84% .85^4 1-1454 M ay ..................... “ y2 .8854 .89 1.14% N o. 2..................... “ 1.12 1.0554 1.0 5 54 1.18 N o. 2 w hite........ “ 1.11 1 .0 5 j4 l.0 5 j4 @ 1-06 1.18 Oats N o. 2 w hite........ “ .50^4 .40^4 .40^4 @ -41 .55 @ .55 54 Flour Soft patent........per bbl. 9.10 8.25 8.65 @ 9.00 7.00 @ 7.50 Spring patent..... “ 9.00 7.90 8.50 @ 8.75 7.10 @ 7.30 M iddling cotton....per lb. .2 5 54 .24^4 .2454 .28 H ogs on h oof........per cw t.14.75 11.75 12.00 @ 1 4 .2 5 10.45 N o te : July wheat closed at $1.53 and July corn at $1.04. .91 B U IL D IN G T he dollar value o f building permits issued in the five largest cities of the district during July was 29.5 per cent smaller than for the preceding month, but exceeded that of July, 1924, by 19.6 per cent. Throughout the period under review work on build ings in course of construction was pushed forward under ideal weather conditions. A s has been the case for the past several months, an outstanding feature of the building situation is the large volume of residential construction in the suburban com m u nities. The movement of building materials con tinues on a large scale, with shipments of brick manufacturers during July the largest on record for that particular month. Lumber sales were slightly under those of June, but a small gain was reported in sales of iron and steel structural materials. Gen erally the price of building materials was unchanged as compared with the preceding thirty days. Skilled artisans in the building trades are fully employed, with shortages in certain crafts being reported in tw o of the large cities. Production of portland ce ment for the country as a whole during July totaled 15,641,000 barrels, against 15,387,000 barrels in June and 14,029,000 barrels in July, 1924. Building figures for July follow : _______ N ew Construction *Cost Permits 1924 1925 1924 1925 183 $ 234 $ 164 Evansville .. 222 75 169 Little R ock 88 261 249 1,093 Louisville .. 438 1,033 1,966 1,703 M em phis ... . 457 432 3,199 St. Louis... . 974 2,489 858 ________ Repairs, etc.________ Permits *Cost 1925 1924 1925 1924 75 $ 18 $ 16 82 31 90 78 45 131 110 154 201 119 48 78 95 625 418 335 466 July Tune M ay * In 843 850 1,067 totals..2,179 1,797 $6,753 $5,558 totals..2,365 1,881 9,513 4,944 totals. .2,242 2,013 8,603 7,383 thousands of dollars (000 om itted). 1,028 963 1,231 $ 683 1,040 939 $661 760 1,031 F IN A N C IA L As compared with the similar period imme diately preceding, the banking and financial situa tion in this district during the past thirty days was featured by a fair expansion in loans at the com m er cial banks and a moderate advance in rates charged on all classes of loans. The general demand for funds by mercantile and industrial borrowers was reported good, but hardly commensurate with the volume of business being transacted by them. This latter fact is ascribed to more extensive financing of their requirements with their own resources, and lessened needs occasioned by more rapid turnover and smaller inventories made possible by the prac tice of necessity basis buying of recent months. The demand from the cotton sections, where the m ove ment of the crop to gins is considerably earlier than last year, is increasing, but thus far local banks have been able to handle the movement with rela tively little recourse to financial institutions in the larger centers. Loans for financing the wheat crop and to flour millers were larger than during the pre ceding month, but somewhat smaller than at the corresponding time last year. W ith improvement in prospects for the corn crop, there has been a steadily increasing demand for funds to finance purchases of stocker and feeder cattle and hogs. Good liquidation is reported generally through the winter wheat areas, also in sections where fruits and early vegetables are the chief crops. Southern lumber manufacturers have increased their commit ments, and demand for credits from the cement and quarrying interests and manufacturers of building materials generally continues brisk. Deposits of the reporting member banks have increased steadily since the last week in July, and at the middle of August were about on a parity with the level prevailing in mid-June. Loans and discounts reached the highest point since the second week of May. Loans secured by stocks and bonds declined slight ly toward the end of July, but part of the loss was regained in early August. Commercial Paper — Sales of the reporting brokerage interests during July were 8.3 per cent smaller than during the same period a year ago, and 4.9 per cent below the June total this year. During late July and early August business lagged, but there has been decided improvement since the second week in August, with sales equalling those of the same period last year. T he demand generally through the South and in the wheat belt is reported good, country banks being in the market for fair amounts. Offerings have increased in the imme diate past, with the number of choice names larger than in some time. Rates were higher, ranging from 4 to 4% per cent, with occasional sales at 4 / l2 per cent. Debits to Individual Accounts — The follow ing comparative table gives the total debits charged by banks to checking accounts, savings accounts, certificates of deposit accounts and trust accounts of individuals, firms, corporations and U. S. Government in the leading cities of this district. Charges to accounts of banks are not included. *For four weeks ending Aug. 1925 Aug. 1925 Aug. 19, July 17, Aug. 20, comp, to comp, to 1925 1924 July, 1925 Aug. 1924 1925 E. St. Louis and Nat. Stock Yards, 111..$ 42,976 El Dorado, Ark..... ....... 10,666 Evansville, Ind..... ...... 35,843 Fort Smith, Ark.... ...... 9,745 Greenville, Miss.... ...... 2,554 Helena, Ark.......... ....... 3,454 Little Rock, Ark........... 54,717 Louisville, Ky.............. 156,879 Memphis, Tenn..... 98,801 Owensboro, Ky............ 4,834 Quincy, 111............. ...... 11,507 St. Louis, Mo....... ....... 628,800 Sedalia, Mo........... ...... 4,094 Springfield, Mo...... $ 42,830 $ 38.370 + 0.3% 11,534 7,158 — 7.5 40,394 24,954 — 11.3 10,848 9,662 — 10.2 3,005 2,540 — 15.0 3,163 2,982 + 9.2 55,362 48,733 — 11.6 189,725 141,898 — 17.3 104,332 88,040 — 5.3 5,170 4,972 — 6.5 11,746 7,739 — 2.0 655,100 591,936 — 4.0 4,511 3,493 — 9.2 13,727 9,867 — 4.6 Totals.................... $1,077,963 $1,151,447 $ 982,344 — 6.4 *In thousands (000 omitted). + 12.0% +49.0 +43.6 + 0.9 + 0.6 + 15.8 + 12.3 + 10.6 + 12.2 — 2.8 +48.7 + 6.2 + 17.2 +32.7 + 9.7 F E D E R A L R E S E R V E O P E R A T IO N S Bills discounted by the Federal Reserve Bank of St. Louis continued to increase during the period under review, and reached a new high mark for the year. On August 17 the total was $28,315,000, which compares with $20,876,000 a month earlier, and $19518,000 on August 17, 1924. Chiefly on account of larger discounts, total earning assets moved up from $62,157,000 on July 17 to $71,366,000 on August 17, the latter figure com paring with $34,410,000 on the same date last year. Federal reserve note circula tion continues to decline, the total on August 17 being $41,853,000 against $43,637,000 a month earlier and $58,420,000 on August 17, 1924. The combined reserve ratio against Federal reserve note and deposit liabilities stood at 45.6 per cent on August 17, a decline of 7.5 per cent and 34.4 per cent, respectively, as compared with a month and a year earlier. During July this institution dis counted for 222 of its member banks, as against 228 accommodated in June and 244 in July, 1924. The discount rate of this bank remained unchanged at 4 per cent. Changes in the principal assets and liabilities of this institution since last month and a year ago are shown in the follow ing table : *Aug. 17, 1925 ,$28,315 11,751 . 30,817 483 *July 17, *Aug. 17, 1924 1925 $19,518 $20,876 18 9,919 14,874 30,879 483 Total earning assets............ F. R. Notes in circulation.. $71,366 41,853 , 77,451 $62,157 43,637 73,128 $34,410 58,420 72,459 Ratio of reserves to deposit and F. R. note liabilities.............. *In thousands (000 omitted). . 45.6% 53.1% 80.0% Bills discounted........... Bills purchased............. U. S. Securities........... Foreign loans on gold.. Condition of Banks — The follow ing statement shows principal resources and liabilities of report ing member banks in Evansville, Little Rock, Louisville, Memphis and St. L o u is : Number of banks reporting..................... Loans and discount (incl. rediscounts) All other loans and discounts.. Investments U. S. Pre-war bonds.............. Liberty bonds.......................... Treasury bonds........................ Victory and Treasury notes.. Certificates of Indebtedness.... Other securities...................... Total Investments.. Time deposits..................................... Government deposits.................. ...... Bills payable and rediscounts with Federal Reserve bank *Aug. 12, *July 15, *Aug. 13, 1924 1925 1925 34 t33 1*33 $ 7,872 , 171,732 307,984 $ 9,150 171,699 299,717 $ 9,049 146,973 313,709 .$487,588 $480,566 $469,731 12,707 . 22,581 , 11,441 6,391 534 111,236 12,707 22,656 11,200 7,043 552 108,168 15,082 22,978 2,509 9,411 1,205 92,133 ..$164,890 . 45,709 . 6,801 . 388,060 . 208,500 1,304 $162,326 45,409 7,496 387,350 205,800 1,906 $143,318 30,667 7,473 359,912 202,948 2,170 4,316 3,581 1,641 4,891 630 405 . *In thousands (000 omitted), fDecrease due to consolidation. Total resources of these 33 banks comprise approximately 54 per cent of the resources of all member banks in the district. (Compiled August 22, 1925) B U SIN E SS C O N D IT IO N S IN T H E U N IT E D S T A T E S Production — The Federal Reserve Board’s Index of Production in basic industries, which makes allowance for usual seasonal variations, advanced by about 2 per cent in July to a point nearly 20 per cent above the low level of a year ago. Increased output was shown for lumber, coal, and cement. Cotton consumption declined less than usual at this season, while the output of the iron and steel indus- variation. than the usual seasonal decline in July and were 3 per cent larger than a year ago, and mail order sales were considerably above those of July, 1924. Wholesale trade continued at the June level and was 6 per cent above the corresponding period of a year ago. Prices — Wholesale prices advanced further by nearly 2 per cent in July, according to the Index of the Bureau of Latest figure, J u ly = 159.9. Latest figure, July=112. try and the activity in the wool industry continued to de crease. In nearly all the industries activity was greater than in July of last year. Among industries not repre sented in the Index, the production of automobiles, rubber, tires and silk continued to be large. Volume of factory employment and earnings of industrial workers declined further in July, seasonal increases in the clothing, shoes, and meat packing industries being more than offset by decreases in the other industries. Building contracts awarded in July were in only slightly smaller volume than the exceptionally large total reached in June, and the toatl for the first seven months of this year exceeded that for any previous corresponding period. Estimates by the De partment of Agriculture indicated a less favorable condi tion of all crops combined on August 1 than a month earlier. Expected yields of corn, wheat, rye, tobacco, and hay were somewhat smaller than in July, while the indi cated production of oats, barley and white potatoes was larger. According to present indications, the yields of all principal crops, except corn and barley, will be smaller than last year. The mid-August cotton crop estimate was 13,990,000 bales as compared with a forecast of 13,566,000 bales on August 1. Labor Statistics. Prices of farm products and of miscel laneous commodities rose over 4 per cent reflecting chiefly increases in live stock and rubber, while in the other com modity groups price changes were relatively small. The general level of prices in July was 9 per cent higher than a year ago, the rise being chiefly in agricultural commodities. In August raw sugar, potatoes, silk, metals and fuels ad vanced, while grains, leather, hogs, and rubber declined. Bank Credit — Demand for commercial credit at mem ber banks in leading cities increased in August and the volume of commercial loans on August 12 was larger than at any time since the middle of May, but still considerably below the level at the beginning of the year. Loans on securities increased between the middle of July and the middle of August, while the banks’ investments showed little change for the period. Discounts for member banks increased at all the re serve banks in recent weeks and the total on August 19 was the largest in more than a year and a half. The re serve banks’ holdings of securities and bills bought in the open market continued to decline, but total earning assets in the middle of August were near to the high point for the year.___________________________ ___________________ BILLIONS OF DOLLARS_________ _______________________________BILLIONS OF DOLLARS r FE D ER AL RESERVE BANK <CREDIT \ Earning Assets Discounts! Lv _ Acceptanc L ) KJ es •* *v./w r\ \ U SSe^^^ XT\ 1922 Latest figures, July, 1925. Trade — Freight car loadings during July were larger than in June and exceeded those of any previous July, and weekly figures for August indicated a continued large vol ume of loadings. Sales at department stores showed less 1923 V » 4 v U // .< J 192<* "I 1925 Weekly figures for 12 Federal reserve banks Latest figure, August 19. During the latter part of July and the first half of August, conditions in the money market were somewhat firmer. The prevailing rate on prime commercial paper, which had remained at 3^4 to 4 per cent since early in May advanced in August to 4% per cent.
@FedFRASER