Full text of Review (Federal Reserve Bank of St. Louis) : December 1952

View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

Monthly Review
A

Volume X X X IV

DECEMBER, 1952

Farm machinery

Number 12

has brought about a

revolution in agriculture. Districtwise the shift
toward mechanization has been remarkable in
rate and extent.
The machine affords opportunities in the quest

M echanization

for larger farm output and for higher standards

o f

But it also presents problems such as: 1)
further adaptation of machines to certain farm

of living on the farm.

operations, 2) determination of the proper level

Eighth District
Agriculture

of investment in machinery, 3 ) procurement of
additional capital and credit, and 4) adjustment
to new burdens of higher fixed cash outlays.
Mechanization that increases efficiency in dis
trict farm output should be speeded but better
farming practices are also necessary.

Farm machinery has brought about a revolution
in agriculture.

HP HE EIGHTH Federal Reserve District, located
A in the heart of the great valleys of the Missis
sippi, Missouri, and Ohio Rivers, has been the
scene since early in the Nineteenth Century of
many historical events, stories, and folklore making
up the romance of agriculture. High in the list of
events has been the progress in farm mechaniza
tion. The change from hand power methods in
American agriculture has been described as one of
the most far-reaching transformations in human
history, eliminating much drudgery from farm
work and bringing an abundance of food and fibre
never before known in any land or era.
The story of the machine in agriculture is partly
old, but generously mixed with the new. It is un
usual today to meet a farmer who has experienced
the day when wheat was bound by hand or when
hay was baled with horsepower, but many of our
school children can recall the days before the de
velopment of a successful cotton picker. In this
country mechanization progressed slowly until the
last quarter-century. Horse and mule numbers did
not start to decline until after 1920 and in that year
there were less than 250,000 tractors on American
farms. Faster progress was made with the com
ing of the gasoline-powered era and with increased
availability of electricity in farming, particularly
over the most recent years. Thus in 1870 the aver
age farm worker controlled 1.6 horsepower; in 1920
he had 5.3 horsepower at his command, but by 1950
this had increased to 33.1
xI«and OP P l e n t y , Farm Equipment Institute, 1950, page 2 .

HORSES,

MULES

AND TRA CTO RS
UNITED

STATES

ON FARMS

Even though mechanization has moved ahead at
a relatively rapid pace in the United States during
recent years, it might be well to recall two facts, t
Elsewhere in the world over a billion people are
being supplied with food produced with farming
methods little different than were used fifty cen
turies ago. And further, although the over-all rate
of progress is remarkable, some stages of crop pro
duction on many United States farms involve hand
methods little different than those used in the
underdeveloped areas of today.
Districtwise the shift toward mechanization has
been remarkable in rate and extent.

How does the Eighth District stand in this me
chanical progress? First of all it should be noted
that no comprehensive measures of mechanization
of farming are available. The count of farms with
tractors in use gives some indication, but must be
interpreted with care. A measure in terms of the
percentage of farms with tractors would, on the one
hand, tend to overstate the degree of mechanization
on farms. Many operations are not mechanized
even though there is a tractor on the farm. The
first operations to be mechanized are usually plow
ing and seedbed preparation. Mechanized seeding,
cultivation, and harvesting tend to come later, with
chores being about the last of the farm operations to {
succumb. Thus, at the time of the 1950 Census
of Agriculture, 32 per cent of district farms had
tractors, but only 8 per cent had combines, 5 per
cent had corn pickers, and 3 per cent had pick-up
hay balers.
Table 1

MECHANICAL EQUIPMENT
ON EIGHTH DISTRICT FARMS. 1 9 5 0
Per cent of
all {arms
Tractors .........................................................................................
T r u c k s .............................................................................................
Automobiles ............................................................. ..................
Grain combines ................................. .........................................
Corn pickers ..... .........................................................................
Pick-up hay balers........................................ ............................
Electricity ....................................................................................
Electric water pumps..............................................................
M ilking machines ......................................................................
Electric feed grinders..............................................................
Source: Preliminary data, C ensus o f A g r ic ulture ,

USOA, October. 1952

Page 172

32%
27
47
8
5
3
67
19
4
1
1950.

At the same time, the percentage measure would
be biased on the down side, that is it would tend to
understate the degree of mechanization in com
mercial farm operations. A number of farms in
cluded in the total of all farms are residential units
and part-time; still others classed as commercial
farms are quite small and produce little for sale.
For example, only 62 and 65 per cent of all farms
were commercial farms in Arkansas and Indiana
(1950). In other district states the proportion of
commercial to total farms ranged between 71 and

76 per cent. Many part-time farmers, no doubt,
have tractors, but a considerable number have no
tractor or draft animals and are unlikely to acquire
any. Further, the percentages do not indicate the
extent to which landlords furnish mechanical power
for part or all of the farm operations or the extent
to which custom operators are employed. Data
showing the percentage of all farms with tractors
are, however, useful to make comparisons over time
and represent in a rough way the extent of mech
anization on district farms.
In these terms some areas of the district lag be
hind the average development but much progress
is evident over all. An indication of this can be
seen by comparing the maps on pages 174 and 175,
showing the per cent of farms with tractors in 1945
and 1950. For the district as a whole, 32 per cent
of the farms had tractors in 1950 compared with
18 per cent in 1945.
A study of the 1950 map shows that in 39 counties
60 per cent or more of all farms had tractors, triple
the number of counties in 1945. When non-commercial farms are excluded, it can be seen that the
transition to mechanical power is virtually com
pleted in those counties. In 49 other counties 50
to 60 per cent of the farms had tractors. On the
other hand, the map also shows that in 1950 there
still were 105 district counties in which less than
one-fifth the farms reported tractors. This large
number of counties on which less than one-fifth
of the farms had tractors must be considered in
the light of the fact that topography is a deterrent to
mechanization in some parts of the district. A con
siderable number of the counties in which little
mechanization has taken place are located in the
mountainous Ozark and Ouachita regions. Also,
mechanization is prevented by small size farms, by
emphasis on tobacco and cotton crops requiring
much hand labor, and low income per farm. Even
in these areas, though, progress is being made. In
fact the data indicate that considerable catching up
occurred between 1945 and 1950. For example, 4.6
per cent of all tractors in the United States in 1950
were located on farms in district portions of Ar
kansas, Kentucky, Mississippi, and Tennessee. In
1945 only 2.9 per cent of the tractors were in dis
trict portions of those states.
In discussing mechanization it should be remem
bered that these small area data are for early 1950
(the most recent available), and that considerable
changes have taken place since that time. Tractor
numbers have increased nationally by half a million
in the two years since 1950. Since tractor numbers

in the Eighth District increased 89 per cent between
1945 and 1950 compared with a 49 per cent increase
nationally, it is logical to assume that the increase
in the district since 1950 has exceeded the 15 per
cent increase nationally. The same is probably true
for other types of equipment.
The machine affords opportunities in the
quest for larger farm output . . .

Behind the romance of the machine, however
startling the development may be, are many impli
cations, problems, and opportunities which are
having and will continue to have a profound effect
on agriculture and the economy of this district and
nation.
As a primary opportunity or social gain,
increased power on farms has made possible stead
ily increasing output. Fortunately, this increase
came at a time when need for food was extremely
high. Farmers were able to produce more food with
less labor, releasing workers for employment or
service elsewhere. Thus, between 1930 and 1952
agricultural output for the nation increased threefifths, total man-labor requirements declined nearly
one-fourth, and output per farm worker nearly
doubled. District data, if available, undoubtedly
would show similar trends.
Table 2

FARM OUTPUT AND LABOR INPUT, U. S.
19 3 5 -3 9 = 1 0 0 .
Farm
output
1930 ........................................................ .
1935 .........................................................
1940 .........................................................
1945 ................................................... .
1950 .........................................................
19513 .................................................
19522 .......................................................

95
96
110
129
136
139
141

M an hours
of work1

O utput per
man hour

109
110
98
95
83
86
83

87
96
112
136
164
162
170

1 In terms of time required by average adult worker.
2 Preliminary.
S ource: A g r i c u l t u r a l O u t l o o k C h a r t s , U S D A , 1953, p. 19.

. . and for higher standards of living
on the farm .

A second opportunity has come in the form of
higher standards of living on the farm. In agricul
tural areas with relatively low per capita incomes,
the machine offers an economic opportunity where
by the gap between productivity and income of
agricultural workers and those engaged in industry
can be narrowed. The marvel of the machine in such
instances lies in the fact that both those remain
ing in agriculture and those who take employment
in industry are able to improve their standard of
living. This is in addition to the fact that produc
tion and incomes can be improved markedly by
better farm management practices and in other
ways.
Page 173

PER CENT

FARMS

WITH

TRACTORS

1950

F AR M S

WITH

40%

TRACTORS

TO 59%

60% AND OVER

fT \ H E

Page .174

SHADING

on the

maps

The over-all increase in number of

illustrates at a glance that mech
anization of farms in the Eighth Dis

district farms having tractors has been
from 18 per cent in 1945 to 32 per cent

trict has proceeded rapidly

in 1950.

since

Another striking fact brought out by

World War II. The map showing per
cent of farms with tractors in 1950

the maps is that the northern part of

has a much deeper shading than the
one showing the percentage in 1945.

the district is by far the more heavily
mechanized. And it, as well as the

PER CENT

OF FARMS

southern part, has had a substantial
growth in recent years in the number
of tractors on farms. In fact, there has
been substantial improvement in prac
tically every county in the district.
The reader who is familiar with the
district can note how a low number
of tractors per farm is associated with

WITH

TRACTORS

the mountainous regions of southern
Missouri and northwestern Arkansas
and many tobacco and cotton growing
regions in the southern parts of the
district. In studying these maps, it
should be borne in mind that the per
centage of farms with tractors repre
sents in only a rough way the extent
of mechanization.
Page 175

An indication of the close association of increased
output per worker, mechanization, and standard of
living, can be seen by comparing the map show
ing level of living indexes (page 177) with the maps
showing farms with tractors. In a considerable
number of counties (92 counties in 1950) the level
of living is equal to or exceeds the national average
and in 60 other counties the level of living is as good
as the 1945 national average. By and large these
counties also are the ones in which mechanization
is nearly completed. But in the other 200-odd dis
trict counties, substantial progress still needs to be
made. And these are the counties for the most part
that have lagged in the shift to power farming.
But it also presents problems such as: 1 ) further
adaptation of machines to certain farm opera
tions, . . .

Threading through this epic of the machine are
several problems that have not been solved in their
entirety. Among these might be listed the problem
of adapting machines to certain farm operations.
Despite the ingenuity of American engineers and
farmers, production of tobacco, many fruits and
vegetables, and even cotton, to name a few ex
amples, still require large amounts of hand labor.
Tobacco and cotton, of course, are major sources of
income in the Eighth District. W ide differences
also exist in the extent to which use is made of
machines from farm to farm after machines have
been developed. But more important still is the
problem of determining when there has been suffiACRES

OF CROPLAND HARVESTED PER
EIGHTH DISTRICT, 1950
ACRES

PER

TRACTOR

cient investment in machinery on the farms.
Data on machinery give little indication that a
leveling-off stage has been reached in machinery
numbers. What is the likelihood of a leveling off
in tractor numbers ? Is there a saturation point for
mechanical equipment? At what level does the
addition of a machine lead to uneconomical opera
tion ? Answers to these questions cannot be stated
in precise terms, but further discussion of them is
desirable.
At first glance the mere fact that large numbers
of farms in the district still are not mechanized indi
cates the likelihood that more machinery will be
added to district farms. On the basis of percentage
of farms mechanized, some increase can be expected
in practically all areas, but particularly in the South.
Thus, if the number of tractors in all parts of the
district were increased to a tractor for every 76 acres
harvested as in Indiana, tractor numbers in the dis
trict would increase nearly one-fourth. But 76
acres per tractor is in no way indicative of a leveling-off point. Tractor numbers are still increas
ing in Indiana, too. Some closely associated with
the farm equipment industry believe that eventually
there will be a tractor for each fifty acres of har
vested land, or less. Recent developments of smaller,
less expensive equipment may make this feasible.
Evidence of this trend is indicated by the increase
in tractor numbers since 1950. Dividing total acres
harvested in the district by tractor numbers gives
81 acres per tractor in 1952 compared with 93 in
1950. (This assumes the same percentage increases
in tractor number d i s t r i c t w i s e as o c c u r r e d
nationally.)
How much lower will acres harvested per tractor
go or should they go? The above data show the
trend, but do not tell the whole story. Some ad
justment should be made for the fact that these
averages include substantial acreage in small nonTable 3

FARMS IN DISTRICT STATES CLASSIFIED
BY CROPLAND HARVESTED, 1 9 5 0

Number of farms with
harvested cropland of—
L,ess than
More than
More than
(In thousands)
30 acres
30 acres
50 acres
Arkansas ............................. 100
55
27
Illinois ................................. 33
142
128
Indiana ............................... 44
98
78
Kentucky ............................ 146
52
25
Mississippi ............... .......... 180
49
16
Missouri .............................. 73
119
84
Tennessee ........................... 143
62
27
1Wheel tractors— excludes garden and crawler tractors.
Source: Preliminary data. C e n s u s op A g r ic u l t u r e , 1950.

108

M IS S IS S IP P I

T E N N E S SE E

8 th

D IS T R IC T

U N IT E D

S O U R C E:

STATES

A dapted

from

Page 176

P re lim in a ry Data Census of

A griculture, 1 9 5 0

Number of
f^ s
reporting
tractors1
40
138
101
47
32
97
47

mechanized farms. If this small-farm acreage is
disregarded there are more farms with tractors in
district states than there are farms with 50 or more
acres of harvested land. For example, in Indiana
more farmers owned tractors (exclusive of garden
and crawler tractors) than there were farms having

thirty or more harvested acres. In Illinois there
were nearly as many. An additional several thou
sand farmers in these states reported garden trac
tors (presumably residential and part-time farmers)
but no wheel or crawler type. Studies in Kentucky
and Missouri have shown that an availability of 75
harvested acres or more per tractor usually provides
the most efficient level for tractor operation.

These data suggest, therefore, that in some dis
trict states the number of tractors may already
have increased to the point where machinery costs
per unit output are higher than if more days use per
year were available. Even in the states generally
considered as being less advanced in mechanization,
farms having tractors and farms having forty har
vested acres are about equal. If additional tractors
Page 177

are to be used economically in a good many in
stances in these states, farm consolidation may be a
necessary prerequisite. This assumes harvested
acreage on present farms cannot be increased sub
stantially.
The matter of economy of use will need closer ex
amination in the period ahead in view of prospec
tive narrowing profit margins. Economy on a
cost-per-unit or a cost-per-day basis to a consider
able extent is dependent on how much a piece of
equipment is used. For example, the accompany
ing table shows that the cost per day when a trac
tor (two plow) is used 125 days is but half the
cost when used only 35 days per year.
Table 4

TRACTOR COST PER D A Y 1
Tractor 1 p low :
D ays used per year......
21
Cost per day.................. $ 11.00

42
$ 7.25

69
$5.30

94
$5.10

119
$4.36

186
$4.35

Tractor 2 plow :
D ays used per year..... . 22
Cost per day...................$15.00

40
$ 10.00

70
$7.72

96
$7.79

127
$5.33

167
$5.43

1 Tractor investment (average 1951) 1 plow $980 ; 2 plow $1,800.
Source:' S o m e C r i t e r i a for E v a l u a t i n g F a r m M a c h i n e r y a n d B u i l d
in g
L o a n s , U niversity of Kentucky d ata, Federal Reserve B a n k o f
Cleveland and St. Louis, September, 1952, p. 24.

A point not generally recognized is the number
of farms that are apt to have closer to thirty days’
use for a tractor than 120. For example, a Ken
tucky farm producing tobacco, corn, small grain
and hay with forty-six acres of harvested crop land,
plus 120 ac-res of pasture, would have but about
thirty-six days’ use for a tractor each year.2 Such
farms tend to be on the high end of the use-cost
scale.

This, of course, does not necessarily mean that
a farmer having but twenty-five days’ use for a trac
tor a year should not own one. A number of fac
tors may justify purchase of equipment on smaller
farms. A tractor may be cheaper to own than a
team, even though the small size of the farm does
not permit most efficient use. Custom operators
may not be available, and labor may be scarce and
expensive. Machinery may be justified on the basis
of increased output due to timeliness of operations
or due to replacement of horses with other produc
tive livestock. Farmers may work together trading
use of equipment, keeping each farmer’s machinery
investment down. More use thus would be obtained
from each piece of equipment, making for more
efficiency. Furthermore, the data on economical
use of farm equipment are for average operators.
Better-than-average operators may get by with
smaller depreciation charges and operating costs.
C r it e r ia

for

E v a l u a t in g

Farm

a c h in e r y

and

u il d in g

Lo an s, U niversity of Kentucky data, Federal Reserve Bank of Cleveland
and St. Louis, September, 1952, p. 27.

Page 178

. . .

3 ) procurement of additiomd capital .

So much for the difficulty of adjusting machines
to the size of the farm, in other words, the problem
of using machinery efficiently. The third prob
lem generated by the spread of mechanization in
farming is that of obtaining additional capital. This
deserves s e pa r at e consideration, for the capital
structure of agriculture, like farm power, has un
dergone considerable change in recent years. The
very fact that machinery and equipment invest
ment on farms has increased five fold since 1940
suggests that financing needs also have increased
greatly. In addition to price increases machines
have become more complex, adding to their cost,
and the number of machines in use has more than
doubled.
FARM MACHINERY AND MOTOR VEHICLES
U.S., JANUARY I, 1 9 4 0 -1 9 5 2

. . . 2 ) determination of proper level of
Investment in machinery, . . .

2 Some

All of these factors tend to make equipment on
smaller farms more easily justified.
However, recognizing these extenuating circum
stances does not alter the basic fact that if other
conditions are the same the operator with 100
days’ tractor use will have a lower cost per unit out
put than one with but 30. And it does mean that the
farmer with a more efficient level of operation has
a better chance of servicing debts with less diffi
culty. In a price-cost squeeze this extra efficiency
may well mean the difference between operating
at a profit or operating at a loss.

SOURCE

ON FARMS

Balance Sheet of Agriculture
Agricultural Information, Bulletin 9 0
USDA, July, 1952

Even more significant than the sheer size of the
machinery inventory is the ratio of machinery
assets to land investment. In 1940 total farm ma
chinery values were one-tenth the total value of
farm real estate. By 1952 the ratio had increased
to one-sixth of land value.

Obtaining the necessary capital to purchase
equipment has created new problems for farmers
arid bankers. Generally it is not enough to have
money for just the cost of machinery. In many
instances, additional capital is needed for farm con
solidation before additional machinery can be used
efficiently. More capital is also needed to increase
productivity of land to justify the greater invest
ment in machinery.

AGRICULTURAL NON-REAL ESTATE D E B T *
U. S.f JANUARY !, 1 9 4 0 -1 9 5 2

and 4 ) adjustment to new burdens o f
higher fixed cash outlays•

The fourth major problem posed by the rapid
growth of mechanization of district farms is the
one of adjusting to higher fixed cash outlays. Mech
anization of farm operations is, of course, not the
sole cause of the increase in cash costs relative to
total farm operating costs, but it has contributed
importantly. Vehicle operation and maintenance,
both cash costs, and vehicle depreciation, an item
that requires cash disbursal in a relatively few years,
are important items in farm expense records today.
Further, rapidly rising machinery investment has
contributed to the accelerated expansion of short
term debt with its attendant cash outlay in the
form of interest and principal repayments.
From the chart it can be seen that non-real estate
debts of farmers up to January 1, 1952, had in
creased 40 per cent from 1950 levels and were 153
per cent higher than at the outset of 1946, shortly
after the end of W orld W ar II. Preliminary esti
mates indicate a further rise in this category of at
least 10 per cent during 1952.3

1940

1944

1948

1952

* Excludes CCC loans
* * Individuals, merchants, dealers, and others - tentative estimates
SOURCE1 Balance Sheet of Agriculture.
Agricultural Information, Bulletin 9 0
US D A ., July, 1952

. .

and credit,

. .

In effecting the shift toward mechanization and
larger farm output, additional credit is needed along
with additional capital. Considerable mechanization
has been paid for in the post W orld W ar II era
out of accumulated savings of the war years and
from current earnings. At the same time, bankers
have extended considerable credit and are being
called on to an increasing extent to finance the new,
more expensive machines. The increased use of
credit reflects the fact that many farmers have spent
wartime savings and the fact that purchasing power
of farm operators has been declining. Since 1947
purchasing power has declined nearly a fourth
despite the boom resulting from the Korean War.
It might also be pointed out that provision of
this increased credit volume has presented some
problems to the lenders. Not only must the banker
advance more credit in this new machine age than
formerly, but each loan requires more supervision
as the farmer today is more vulnerable to price
change.

In any price-cost squeeze on district farmers, the
rise in the proportion of cash expense items to total
expense, occasioned by mechanization, is given
extra leverage by a growth in short-term debt. It
becomes increasingly necessary, then, for farmers
(and for bankers lending to farmers) to adjust to
this problem. Larger cash reserves and more care
ful determination of the optimum level of invest
ment in machinery for each individual farm are cer
tainly in order.
Mechanisation that increases efficiency in district
farm output should be speeded . . .

Thus mechanization is not a panacea; it will not
cure all the disabilities of agriculture in this district.
It offers substantial opportunities to bring idle land
into productive use, thereby enlarging the income
base for the farm, and to reduce unit production
costs and increase the efficiency of farm operations
as well as the income of the operator. But the mere
acquisition of machinery does not necessarily and
inevitably achieve these goals. To the extent that
it will, mechanization should be speeded. Credit
extended in these instances can be self-liquidating
over a relatively short time. And consolidation of
extremely small farms into larger units to get maxi
mum efficiency from the machines can be helpful.
On the other hand, machinery purchases which
will show little or no improvement in total product
3

A g r ic u l t u r a l

F in a n c e

R e v ie w ,

Vol. 14, Sup.

USDA,. October,

1952.

Page 179

or lowering of unit cost, and which will add dan
gerously to cash expense outlays, should be dis
couraged.
.

. but better farming practices are also necessary.

Finally, it might be noted that mechanization
alone, despite its valuable contribution to district
agricultural production especially in recent years,

will not bring income per farm in the Eighth Dis
trict up to the national average. T o attain this goal,
mechanization must be accompanied by the whole
range of better farming practices which make pos
sible increased production and income. Together,
these necessary ingredients — mechanization and
other better farm practices— can continue to im
prove the level of living for district farmers.
D

o nald

enry

Survey of Current Conditions
T^VEMAND continued to increase in many lines
and business activity in the Eighth District
rose further in October and early November, de
spite some seasonal slowdowns. Industrial output
again moved ahead and, with the support of in
creasing personal incomes and instalment credit,
consumer purchasing in October continued to pick
up. With a substantial amount of new work put
under contract in recent months, construction ac
tivity remained at a high level. On farms, the
drouth was relieved by widespread rains in Novem
ber. Banks supported the faster tempo of business
activity with a seasonal increase in loans.
In the nation, also, economic activity was at high
levels in October and early November. Industrial
activity which had recovered rapidly in August and
September, expanded slightly in October. The
slower rate of increase partly was due to a sub
stantial decline in coal mining. But the increase also
was limited in some cases by a lack of unused plant
capacity, restricted supplies of critical materials,
and the need for more manpower.
The index of industrial production of the Federal
Reserve Board rose from 226 per cent of the 1935-39
average for September to 227 per cent for October.
Durable goods manufacturing increased consider
ably further, nondurable goods output showed little
change, but mineral output declined 6 per cent.
Page 180

Construction activity declined less than seasonally,
primarily as a result of the strength in private resi
dential building. Labor markets tightened further
in early October as the rise in business activity
brought increased demands for manpower, and, as
in September, youngsters left the labor market to
re-enter school. Unemployment was 1.3 million, a
record postwar low, and 150,000 below the Septem
ber level. Nonfarm employment was at a record
high for October— 54.6 million persons.
During October, prices did not reflect the in
creasing firmness in business demand, primarily be
cause improved supplies created easier markets. The
average level of wholesale prices declined somewhat
as a few basic commodities— notably lead, zinc, and
cotton— developed new weakness and prices of live
stock and meats continued to decrease. Wholesale
prices continued to decline in November largely
reflecting further decreases in prices of cotton, live
stock, and meats. And despite recent declines in
the price level of basic commodities, prices of many
items were still above their pre-Korean levels.
From mid-September to mid-October food prices
continued downward slightly, but other price in
creases raised the price index of all consumer items
by less than 0.1 per cent. In the last two weeks of
October, retail food prices declined 0.1 per cent.

Em p l o y m e n t
The rise in business activity this fall brought
increased demands for manpower, while additional
youngsters left the labor market to re-enter school.
Primarily as a result of these forces, labor markets
tightened further from September to early October.
Unemployment in the nation was estimated at 1.3
million, a record postwar low and 150,000 below
the September level. However, during the rest of
October, unemployment apparently changed little.
Seasonal declines and temporary layoffs in some
industries were offset by high level activity in most
other parts o f the economy.
In district states, claims for state unemployment
insurance continued to decline during October. By
the end of the month they were one-seventh less
than at the end of September and less than one-half
the peak volume in late July. Most of the decline
from September was in Illinois, with claims in other
district states remaining about the same.
In St. Louis, employment for the first eight
months of 1952 averaged about the same as in the
comparable period of 1951. But from August to
September, it increased sharply to a total about
11,000 above that of a year earlier. The gain resulted
primarily from increased defense activity, but also
was due to greater employment in production of
apparel, textiles and shoes and in trade. Due to the
movement of the Army Finance Center from St.
Louis, governmental employment in September
dropped 5,000 compared with a year earlier. During
October and early November the labor market in

W H O LE SA LE PRICES IN THE UNITED STATES
Bureau of Labor
Statistics
( 1 9 4 7 -4 9 = 1 0 0 )

O c t.,’ 52

A ll Commodities....
Farm Products...
F oods;.....................
O ther......................

111.2
104.9
108.5
113.1

Sept.,’ 52
111.8
106.6
110.3
113.2

O c t.,*51
113.7
111.5
111.6
114.6

October, 1952
compared with
Sept.,’ 52
O c t ./5 1
— 1%
— 2
— 2
- 0 -

— 2%
— 6
— 3
— 1

CONSUM ER PRICE INDEX*
Bureau of Labor
Statistics
( 1 9 3 5 -3 9 = 1 0 0 )

O ct. 15,
1952

United States...........

190.9

Sept. 15,
1952
190.8

O ct. 15,
1951
187.4

October 15, 1952
compared with
Sept. 1 5 /5 2 O ct. 1 5 /5 1
- 0 -%

RETAIL FOOD*
Bureau of Labor
Statistics
( 1 9 3 5 -3 9 = 1 0 0 )

O ct. 15,
1952

U . S. (51 cities)___
St. Louis..............
Little R ock..........
Louisville..............
M em phis.........—
* N ew series.

232.4
244.4
228.8
218.1
239.4

Sept. 15,
1952
233.2
244.3
231.6
221.1
240.8

Oct. 15,
1951
229.2
239.3
224.4
216.7
238.0

October 15, 1952
compared with
Sept. 1 5 /5 2 O ct. 1 5 /5 1
- 0
- 0
—
—
—

-%
1
1
1

+
+
+
+
+

1%
2
2
1
1

St. Louis reflected primarily seasonal trends. Shoe
plants and garment industries were in their seasonal
slack period with the resultant layoffs and short
ened work weeks. Unemployment insurance claims
for the week ending November 15 were only slightly
less than four weeks earlier but slightly higher than
in mid-September.
Seasonal trends dominated the employment pic
ture in Louisville. Distilleries increased employ
ment on their bottling lines considerably from Sep
tember to October, but construction activity slowed.
In November an 88-day strike affecting 3,300 work
ers at the International Harvester tractor plant was
settled.
In Evansville expansion of defense output and
seasonal advances in manufacturing and trade
activities pushed employment still higher in Octo
ber. Estimated employment was 82,000, a rise of
1,000 since September and 9,000 above the Octo
ber, 1951, level. Most of the increased employment
over the past year was in aircraft parts manufac
turing.

Industry
Eighth District industry became more balanced
in October and early November as production con
tinued to expand. The level of activity was helped
by a recovery in furniture, textile, and apparel man
ufacture. Shoe producers, although in a seasonally
slack period, were busier than usual and optimistic
as well. Coal tonnage fell off sharply, however.
Manufacturing—An average of reports from five
large reporting cities shows that use of electric
power in October increased over both a month and
a year ago in the important chemical, electrical
machinery, metals, textile, and transportation in
dustries. Declines from both a month and a year
ago, in comparison, were shown only by food and
nonelectrical machinery manufacturers.
The level of steel ingot production and meat
packing in the St. Louis area added to the favorable
record of industry in the district. Steel ingots were
turned out at an average of 107 per cent of capacity
in October, although maintenance cut the operation
rate to 98 per cent for the first three weeks in
November. October livestock slaughter was 11 per
cent better than a year ago and 20 per cent above
September.
Production of lumber in the Southeast continued
at an even keel with markets for both Southern
pine and hardwoods reportedly firm.
Page 181

About the only industry in the district not re
flecting prosperity was whiskey production. Only
16 Kentucky distilleries were operating at the end
of October and warehouses still held huge stocks.
There was some pickup in bottling, however, as the
industry prepared for holiday trade.
Mineral Production— Coal production, after hav
ing risen ratlier sharply in September due to the
threat of a strike, fell off in October when miners
finally walked out. A,nd when the strike was called
off, many orders were cancelled by buyers who
apparently desired delivery only to protect them
selves against the possibility of a prolonged strike.
Unseasonally warm weather did not favor buying
by domestic consumers.
Crude oil continued to flow at a very substantial
production rate.

CONSUMPTION OF ELECTRICITY
Daily Average*
Sept.,
Oct.,
1952
1952
(K .W .H .
K .W .H .
in thous.)
K .W .H .
811
853
Evansville..........
215
169
Iyittle Rock........ .
3,579
3,860
L,ouisville....~.....
1,346
Memphis..... ........
1,374
280
Pine Bluff..........
235
4,726
4,974
St. I<ouis............
10,940
‘l 1,482
Totals.........
* Selected manufacturing firms.

Oct.,
1951
K .W .H .
680
204
3,660
1,459
497
4,692
11,192

October, 1952
compared with
Sept.,’ 52
Oct.,’ 51
+ 19%
— 5%
+ 27
+ 5
— 2
— 7
__ 6
+ 2
— 16
— 53
— 5
+ 1
— 2%
— 5%

LOADS INTERCHANGED FOR 2 5 RAILROADS
AT ST. LOUIS
First Nine Days
Oct.,’ 52 Sept.,*52 O ct./S l
N ov.,’ 52 Nov.,*51 10 mos.’ 52 lOmos.’ Sl
123,180
112,994
121,009
34,402
32,659
1,109,233
1,170,640
Source: Terminal Railroad Association of St. Louis.

CRUDE OIL PRODUCTION
Daily Average
(In thousands
Oct.,
1952
of bbls.)
Arkansas.............
Illinois................. .... . 167.0
Indiana................
Kentucky............ ...... 31.2
Total................ ... .306.3

Sept.,
1952
75.0
166.9
33.7
32.2
307.8

Oct.,
1951
77.3
168.9
33.1
32.8
312.1

October, 1952
compared with
Oct.,’ 51
Sept.,’ 52
— 4%
— 1%
_
1
-0 + 1
+ 3
— 5
— 3
— 2%
— 1%

Co ns t r uc t i o n
Nationally, outlays for new construction put in
place declined less than seasonally from September
to a total of $3 billion for October. Thus the strength
shown in recent months, primarily in private non
farm residential building activity, continued. For
five straight months construction expenditures ex
ceeded by 5 per cent or more the total for the cor
responding month in 1951. For the first ten months
of this year, they have totaled 4 per cent more than
in the same months of 1951. However, when ad
justed for increased costs, construction activity this
year has been running about equal to last year.
Strength in the residential real estate markets was
reflected in an increase from September to October
in the number of nonfarm housing units started,
although a decline is usually expected. The number
of starts rose from 98,000 in September to 101,000
in October and were 11,000 units greater than in
October, 1951. For the first ten months of 1952 there
were 966,400 starts, an increase of 10,400 above
those for the same period of 1951*
In this district residential construction has kept
pace with the rest of the nation, primarily because
of a greater amount of public housing. While the
number of dwelling units included in contracts
awarded during the first nine months of 1952 were
one per cent greater than in the same months of
1951, private housing starts declined about 4 per
cent.
Total construction contracts awarded in this
district during October totaled $86 million, and
were 26 per cent greater than in October, 1951.
For the first ten months construction contracted
was valued at $1,404 million, compared with $1,181
million in the same months of 1951. Excluding the
large contracts for the Paducah Atomic Energy
Commission plant, the volume of work in the first
ten months this year has been 13 per cent larger
than last year.

C O AL PRODUCTION INDEX
1935-39 = 100
O c t.,’ 52
121.7 P

Unadjusted
Sept., ’ 52
197.8 P

Oct., 51
164.6

O c t.,’ 52
113.7 P

BUILDING PERMITS
Adjusted
S ept.,’ 52
188.4 P

M onth of October, 1952

Oct., 51
153.8

SH OE PRODUCTION INDEX
1935-39=100
___________ Unadjusted___________
Sept., ’52
Aug., *52 Sept., ’ 51
161.4 P
165.4
114.2
P

P relim in ary.

Page 182

____________ Adjusted____________
Sept., ’ 52
Aug., ’ 52 Sept., ’ 51
159.8 P
170.5 "
113.1

New Construction
Number
1952 1951

(Cost in
thousands)

119 $ 437 $ 157
84
734
7,312*
149
1,295
883
,3,120 2,516
4,046
2,897
309
315
3,929
1,280

...

Ljttle Rock......

Cost
1952
1951

62
68

Oct. Totals...... .. 3,728 3,183 $10,441 $12,529
2,973 3,228 $10,992 $12,949
* Hospital Construction, $6,500.

Repairs, etc.
Number
1952 1951

Cost
1952 1951

91
301
103
215
302

78 $ 43 $ 36
361
390
240
296
105
267
127
191
13#
849
695
260

1,012
1,033

874 $1,531 $ 1,669
867 $1,618 $ 1,490

The increased volume of work has not been uni
form for all types of construction or for all parts of
the district. Contracts awarded for manufacturing
buildings in the first ten months for the district as
a whole were about double the amount in the same
period last year. But, the volume of such construc
tion in the major cities of the district (except for
the St. Louis area) has been less than last year. In
part this reflects the trend toward the increasing
location of plants in smaller communities.
Construction contracts for commercial buildings
in this district in the first ten months this year have
been slightly less than in the same period last year.
However, this downtrend may not continue, if the
many projects currently being planned are put
under construction.

As measured by the experience of reporting retail
lines in the Eighth District, the volume of retail
trade during October compared quite favorably with
both that in September and October, 1951. Some
lines increased more than seasonally from the pre
vious month with the best sales in nondurables lines.
In comparison to last year, sales gains among re
porting retail lines were general.
At department stores throughout the district,
daily average sales in October, on a seasonally ad
justed basis, reached 114 per cent of the 1947-49
average— the highest point since January, 1951, In
comparison they were 104 per cent in September
and 105 per cent in October, 1951. At the end of
October cumulative 1952 sales were 3 per cent
larger than in the comparable period of 1951. In
the first half of November, preliminary reports in
dicate that sales totaled less than in 1951. But a
somewhat earlier start of Christmas sales this year
will probably pull sales for the month even or ahead
of last year and maintain the cumulative rate of
gain from 1951.
St. Louis area women's specialty store sales
during October were somewhat above those in the
previous month and the comparable month of 1951.
Men’s wear sales in the district during October
W H O LE SA LE TRADE

Stocks
Stock
N et Sales
on Hand
Turnover
Jan. 1 to
O ct., 1952 1 0 m o s /5 2 O ct. 3 1 /5 2
compared^ with
to same Comp, with
O ct. 31
Sept.,52 O c t.,51 period *51 O ct. 3 1 /5 1 1952
1951
8 th F . R . District—
Ft. Smith, A rk.1....
Little Rock, Ark.....
Quincy, 111.................
Evansville, Ind .—...
Louisville, K y ...« ....
Paducah, K y ........... ..
St. Louis Area1 2....
Springfield, M o.......
Memphis, Tenn.......
A ll other cities3........

+ 19%
+ 10%
+ 3%
3.08
2.75
+ 1%
— 2
2.71
2.90
+ 3
+ 1
+ 7
2.63
3.06
+ 12
+ 5
+ 2
+ 9
— 5
3.06
2.78
+ 19
- 0— 3
+ 40
+ 9
+ 35
T
lO
3.17
+ 12
+ 9
+ 5
+ 10
+ 28
+ 21
+ 32
2.66
+ 2
+ 8
3.08
+ 23
— 3
— 5
2.70
2.46
+ 10
+10
+ 2
3.11
3.28
+ 16
+ 13
+ 4
+ 5
2.64
2.55
+22
+ 6
+ 14
+ 8
1 In order to permit publication of figures for this city (or area), a
special sample has been constructed which is not confined exclusively to
department stores. Figures for any such nondepartment stores, however,
are not used in computing the district percentage changes or in com
puting department store indexes.

........
........

.....

^includes St. Louis, Clayton, M aplewood, M issou ri; A lton and Belle
ville, Illinois.
3Fayetteville, Pine B lu ff, A rkan sa s; H arrisburg, M t. Vernon, Illin o is;
Vincennes, Indiana; Danville, Hopkinsville, Mayfield, K en tu ck y; Chillicothe, M issouri; Greenville, M ississippi; and Jackson, Tennessee.
O U T S T A N D I N G O R D E R S of reporting stores at the end of October,,
1952, were 20 per cent larger than on the corresponding date a year ago.

Trade

_______ Line of Commodities_______
Net Sales______
Data furnished by
October, 1952
Bureau of Census,
compared with
U. S. Dept, of Commerce*
Sept.,*52
Oct.,*51
Automotive Supplies................. ........ + 1 1 %
+22%
Drugs and Chemicals....................... + 3
+ 8
Dry Goods............ .............................. — 3
+ 7
Groceries......... - .................................. +11
+ 7
Hardware..... ........................................ + 1 2
+ 7
Tobacco and its Products............... . ........
.......
Miscellaneous............... ....................... + 9
+ 15
**Total All I*ines.... ............... + 8 %
+7%
* Preliminary.
** Includes certain items not listed above.

DEPARTMENT STORES

Stocks
Oct. 31, 1952
compared with
O ct. 31, 1951

+ 2%
+ 9
— 18

+ 6

— 13

.......
— 24
— 12%

P E R C E N T A G E O F A C C O U N T S A N D N O T E S R E C E IV A B L E
Outstanding October 1, 1952, collected during O ctober:
Instalment E xcl. Instal.
Accounts
Accounts
Fort Smith..
Little Rock...
Louisville ......
Memphis .........

....%
17
20
20

47%
48
48
43

Instalment E xcl. Instal.
Accounts
Accounts
Quincy .........
St. L ou is.........
Other Cities....
8 th F .R . Dist.

59%
56

22%
20
12
19

53
51

IN D E X E S OF D E P A R T M E N T ST O R E SA LE S A N D
8th Federal Reserve District
O ct., Sept.,
1952
1952
.

114

.. 130

110
104
140
132

STOCK S

A u g .,
1952
98
110
125
129

O ct.,
1951
111
105
134
119

4 Daily average 1 9 4 7 -4 9 = 1 0 0 .
5 End of M onth Average 1 9 4 7 -4 9 = 1 0 0 .

SPECIALTY STORES
Stocks
Stock
Turnover
on Hand
October, 1952
lO m os. ’ 52 O ct. 3 1 /5 2
J an . 1 , to
compared with
to same comp, with
O ct. 31,
S e p t./5 2
O c t ./S 1 period *51 O ct. 3 1 /5 1 1952 1951
M en’ s Furnishings. + 4 4 %
+ 12%
+ 1%
— 12%
1.78 1.53
Boots and Shoes.... — 3
— 4
+ 2
+13
3.42
3.35
N et Sales

PERCENTAGE OF ACCOUNTS AND

N O T E S R E C E IV A B L E

Outstanding October 1, 1952, collected during October :
M en’s Furnishings..............~.... 4 7 %
Boots and Shoes..,....................... 4 3 %
Trading da ys: O ct., 1952— 2 7 ; Sept., 1952— 2 5 ; O ct., 1951— 27.

RETAIL FURNITURE STORES
N et Sales

Inventories

October, 1952
O'ctober, 1952
Ratio of
compared with
compared with ____Collections
Sept./52 O ct./51 Sept./52 O ct./51 Sept./52 O ct./SI
8th Dist. Total1..... + 1 5 %
+7%
+3%
-0 -%
19% "
21%
St. Loun Area2..... + 1 0
— 11
+ 1
+ 1
41
38
St. Louis............. + 8
— 19
+ 1
+ 1
43
40
Louisville Area3.... + 2 3
+ 9
— 3
— 4
13
15
Louisville........... + 2 4
+12
— 3
— 2
12
14
Memphis............... . + 1 0
+ 4
*
*
13
15
Little Rock............ + 1 9
+ 25
+ 4
+ 4
21
.18
Springfield..............— 2
+14
+ 4
— 2
16
20
Fort Smith.......... . + 2 2
+18
*
*
*
*
* Not shown separately due to insufficient coverage, but included in
Eighth District totals.
1 In addition tp fpllowing cities, includes stores in Blytheville, Pine
Bluff, Arkansas; .Hopkinsville, Owensboro, Kentucky; Greenwood,
Mississippi; Hannibal, Missouri; and^ Evansville, Indiana.
2 Includes St. Louis, (Missouri ; and , Alton, Illinois.
>
3 includes Louisville, Kentucky; and New Albany, Indiana.
PE R C E N TA G E D IS T R IB U T IO N

O F F U R N IT U R E SA LE S
Oct., *52 Sqpt.,’ 52 O c t.,’51
Cas&i S
a
l
e
s
,
17%
16%
18.-%
Credit Sales............... ......... ..........................
83
84
82
Total Sales.......... ...................... .—
1 00%
100%
' 100%

Page 183

totaled substantially larger than in September and
a year ago.
Furniture store sales in the district during Octo
ber were almost one-seventh larger than a month
earlier and were 7 per cent above those in October,
1951.
The retail value of inventories held on October
31 by district retailers was not much changed from
that a month earlier. Department stores and fur
niture stores reported slight gains while apparel
store inventories totaled a little less than those on
September 30. In comparison to October 31, 1951,
department store and furniture store inventories
were valued about the same as last year while
sizable drops were reported by the apparel stores.
Outstanding orders of district department stores
on October 31, in terms of retail value, totaled less
than on September 30. In comparison to a year
ago they were valued about one-fifth higher.

Banki ng and Finance
The money market was fairly tight during Octo
ber and early November. Nevertheless, bank loans
to business expanded, both districtwise and na
tionally, and financing of real estate and consumer
purchases also increased.
Largely as a result of this growth in bank loans
and net Treasury spending, the private money
supply rose during October. Use of this money
supply was at a high level, reflecting the improve
ment in business activity generally.
Money Market— Throughout October and early
November banks generally were under pressure for
funds. Member banks were drained of over a billion
dollars by routine market factors. Most of these
factors drained reserves, but about half the loss was
caused by a net flow of currency into circulation.
At the same time banks were losing funds, there
was an increase, in large part seasonal, in the
demand for loans by businesses. To obtain the
needed reserves, banks increased their borrowings
sharply. Borrowings of member banks from the
System rose to $1.7 billion, the highest level in
years.
District Banking— In the district, as in the entire
nation, banks were under pressure for funds over
most of the period from the end of September to
mid-November. District banks lost a substantial
amount of reserves due to Treasury operations and
an outflow of currency, $95 million and $58 million
respectively. In addition, they were drained of a
minor amount of funds through a contraction in
Federal Reserve float. These drains more than offset
Page 184

a net inflow of funds of about $125 million from
other districts. T o help meet the net reduction,
banks increased their borrowings.
Despite the pressure under which banks operated,
they were able to increase their loans substantially.
During October and early November, member banks
in the district expanded their loans about $100 mil
lion (5 per cent). As usual at this time, business
borrowing from the larger city banks accounted for
a lion’s share of the growth. The rise in business
loans went in large part to finance the processing
and marketing of farm products. In addition, metal
manufacturers and trade concerns increased their
borrowings substantially.
Loans to consumers continued to expand sharply.
Consumer instalment credit at Eighth District com
mercial banks rose in O c t o b e r , continuing the
upward trend that began last May. The largest ex
pansion during October was in repair and moderni
zation loans.
Banking Nationally—The picture nationally was
about the same as in the district. Business loans
during October and early November were up about
$1 billion. The rise was mostly in loans to food
processors, commodity dealers, and trade concerns.
Loans to both real estate owners and consumers
continued to climb.
Largely reflecting this expansion in bank loans
and a transfer of funds from Government to private

BUSINESS AND AGRICULTURAL LOANS
8th

DISTRICT

WEEKLY

REPORTING

1949
MILLIONS
OF DOLLARS
800

MEMBER

MILLIONS
OF DOLLARS

700

600

500

400
w 1st
Quarter

BANKS

1952

2nd
Quarter

_______
3rd
4th
Quarter
Quarter

accounts, the nation’s private money supply rose
over $3 billion during October to an all-time peak of
nearly $191 billion. Roughly three-fourths of the
increase in the money supply was in checking ac
counts of businesses and individuals. However, both
savings accounts and currency in circulation con
tinued to grow.

DEBITS TO DEPOSIT A CC O U N TS
(I n thousands
of dollars)

O ct.,
1952

E l. Dorado, A rk...............$
Fort Smith, A rk ..........

28,387 $
56,185
15,168
184,772

Helena,

A rk .................

Little Rock, A rk ....... ....
Pine Bluff, A rk..........
Texarkana, A r k .* .........

Debits to Deposit Accounts— Debits to deposit
accounts (on an adjusted basis) at 22 district
cities were $4.5 billion during October, an increase
of 2 per cent from the previous all-time peak
reached a month earlier. This increase was shared
in by twenty-one of the twenty-two reporting cen
ters, with the greatest percentage gains at Helena
and Pine Bluff, Arkansas.

Alton, Illinois................

28,040

48,171
11,206

51,119
14,131

+ 17
+ 35

167,761

176,007

+ 10

49,513

49,235
18,930
29,797

+ 35
— 3

20,316
32,137
138,397

Evansville, Ind............ ....
....

158,558
729,505

149,126
682,040

52,054

42,831
44,106

166,382
40,078

34,838

147,762
726,651

+
+

+ 10
+
+

7
5

+35
+ 4
+ 18
— 11

9
7

+ 17

+
+

6
7

+ 7
- 0-

46,718

+22
+

+ 11
+ 59

+
+

5
8

— 11
-0 — 7
— 12

31,054

29,585
12,904

30,184
34,843
13,930

Hannibal, M o ................

10,771
57,716

9,404
57,3£2

11,516
65,501

+ 15

Jefferson City, M o......

1,970,669

2,046,665
12,630
82,991

+ 11
+ 7
+ 13

+
—

I
7

29,069
823,921

+25
+ 19

—
+

1
7

+ 12 %

St. Louis, Missouri..... ... 2,193,740
12,748

Sedalia, M o ....................
Springfield, M o .............

Jackson, Tenn................

28,828

Memphis, Tenn............ ,
Totals

11,861
68,436
23,149
742,876

................ ........... $4,892,734 $4,373,496 $4,646,100

•These figures are for Texarkana, Arkansas, only. Total debits for banks
in Texarkana, Texas-Arkansas, including banks in the Eleventh District,
amounted to $41,830.

AND LIABILITIES BY SELECTED G ROUPS

A ll M em ber

Large City Banks 1

Smaller Banks 2

Change from :

Change fr o m :

Sept., 1952 O ct., 1951

Sept., 1952 O c t., 1951

to
to
O ct., 1952 O ct., 1952 O ct., 1952

to
to
O ct., 1952 O ct., 1952 O c t., 1952

(I n Millions of D ollars)

26,778 $

35,150
148,676
40,782

Greenville, M iss..........
Cape Girardeau, M o...,

DISTRICT MEMBER BANK ASSETS

Assets

66,645
19,695

October, 1952
compared with
Sept.,’ 52 O c t.,'51

O ct.,
1951

E .S t .L .-N a t .S .Y .,I ll. ....

Owensboro, K y ............

Nationally, also, the volume of checks cashed was
up in October. Debits at banks in 342 leading cities
totaled $154 billion, up 11 per cent from both the
previous month and the comparable month a year
ago.

EIGHTH

Sept.
1952

Change fro m :
S e p t , 1952 O c t., 1951
to
to
O ct., 1952 O c t., 1952 O c t., 1952

$+334

$2,665

$+205

$1,856

a. Loans ...................................................................

2,076

+ 167

1,394

+ 113

682

b. U . S. Government O bligations................

2,046

+ 135

1,079

967

c. Other Securities .............................................

399

—

192

—

207

Reserves and Other Cash Balances...........

1,538

941

597

18
11

Loans and Investm ents................................. .

$4,521

$+162

$+132

$ + 129

a. Reserves with the F . R . B ank................

748

489

—

259

b. O ther Cash Balances 8....................a..........

790

—

452

—

338

O ther A ssets ........... .— .... ..................................

- 0-

Total A s s e t s ............................................................

$6,113

$+235

$+356

$3,639

$ + 144

$ + 209

$2,474

$+147

$4,551

$ + 210

$+202

$2,799

$+129

$+113

Liabilities and Capital
5.

Gross D em and D eposits....................................

$1,752

766

+ 114

+ 178

2,033

1,700

1,052

507

545

122

112

388

221

- 0-

167

$+356

$3,639

$+209

$2,474

Deposits of B an k s......................................

818

b. Other Demand Deposits...............................

3,733

Tim e Deposits.........................................................

Borrow ings and Other Liabilities....... ........

8.
9.

Total Liabilities and Capital Accounts....

^Includes 13 St. Louis, 6

$6,113

$+235

Louisville, 3 M em phis, 3 Evansville, 4 Little

sIncludes all other Eigh th D istrict member banks.

$ + 144

- 0-

$ + 147

R ock, and 4 East St. Louis-N ational Stock Yards, Illinois, banks.

Some of these banks are located in smaller urban centers, but the majority are rural area banks.

^Includes vault cash, balances with other banks in the United

States,

and cash items reported in process of collection.

Page 185

Agr i c u l t u r e
The drouth that persisted throughout the district
during most of September and October was broken
in November by general rains. During the first week
of the month enough rain (up to three inches) fell
in the southern part of the district to improve con
ditions materially. However, northern Missouri,
district Illinois and Indiana received only tempo
rary relief (less than one-half inch) until the second
and third week in the month when additional rain
was received.
Fall pastures, reflecting the severity of the drouth,
were in poorer condition on November 1 than any
time since 1934. The bulk of district pastures were
less than 35 per cent of normal November condition.
Fall-seeded pastures were particularly hard hit.
Early sown wheat was up to good stands, but later
seedings were spotty. Thus, the crop was more vul
nerable to winter kill due to the short growth and
lack of secondary root development. However, con
siderable improvement was expected as a result of
the rains.
The drouth, although seriously affecting fallsown crop prospects, was beneficial for harvesting
1952 crops. Harvesting was practically completed
by early November and the quality of the corn was
good.

Corn—Corn prospects improved somewhat in the
district during October, including a 19-millionbushel increase for district Missouri. However, the
crop deteriorated further in Arkansas and Kentucky.
The recent district estimate is 5 per cent less than
1951 production in contrast with a 12 per cent
increase nationally.

Cotton— The cotton crop was turning out better
than had been expected. The November crop report
indicated a district production of 3,763,000 bales, 5
per cent more than the October estimate and 12 per
cent larger than the 1951 crop. Increased prospects
in Arkansas, Mississippi, and Tennessee were offset
by a slight decline in those for Missouri during the
month.

Sept., 1952
9 month total Jan. thru Sept.
compared with
1952
(In thousands
Sept.,
Aug., Sept.,
Sept.,
compared with
of dollars)
1952
1952
1951
1952
1951 r 1950 r
Arkansas................. $ 83,589 + 251 % + 5 7 %
$ 324,032 + 2 3 % + 5 3 %
Illinois.................... ...160,542 + 10
+ 2
1,380,011 — 1 + 16
1
—0 —
772,681 — 3
+ 15
Indiana........ ..............95,612 +
Kentucky...................40,675 +
4
+ 3
362,008 + 2
+11
Mississippi............ .... 102,584 +216
+49
292,318 + 2 2
+48
Missouri............ ........ 113,210 + 30
+ 7
736,219 — 5
+14
Tennessee............... ...65,837 + 102
+37
319,997 + 4
+31
$4,187,266 + 1% + 2 0 %
Totals................. $662,049 + 45% + 1 7 %
r—-Revision of all ’ 50 and ’ 51 fig.

ESTIMATED PRODUCTION FOR MAJOR CROPS
EIGHTH DISTRICT, NOVEMBER 1, 1 9 5 2

Soybeans (b u .)...............
Rice (b ags).....................
Cotton (bales)................
Burley tobacco (lb s.)....

Fnge* 186

Estimated
Production
Nov. 1, 1952
(In thousands)
346,049
87,468
10,051
3,763
193,271

Per Cent
Change
from 1951
— ' 5%
+ 6
+ 4
+ 12
— 3

Per Cent
Change from
Previous
Month
+ 6%
— 1
— 4
+ 5
— 2

Other crops— Slight declines in expected district
production of burley tobacco, soybeans, and rice
occurred during the month. Rice production and
soybean production are expected to be 4 and 6 per
cent more than in 1951, but the burley tobacco esti
mate is 3 per cent less.
Prices—Agricultural prices continued their down
ward trend. For the month ending October 15, the
index of prices received by farmers was 282 (19101 4 = 100), compared with 288 in September and
295 in August. Prices were lower for meat animals,
cotton, corn, chickens and potatoes. Prices paid by
farmers, including farm produced items, declined
too, but not as much as prices received. Thus, the
parity ratio declined 1 point and stood at 100, the
same as the average for the year in 1950.

CASH FARM INCOME

RECEIPTS AND SHIPMENTS
AT NATIONAL STOCK YARD S
Oct.,
1952
Cattle and calves...., 190,286
, 249,620
61,531
, 501,437

Receipts
October, ’ 52
compared with
Sept.,’ 52 Oct.,’ 51
+ 46% + 2 0 %
+ 38
— 14
— 15
+10
+ 31% — 1%

Oct.,
1952
95,561
36,984
20,051
152,596

Shipments
October, ’ 52
compared with
Sept.,*52 Oct.,’ 51
+ 48% + 1 9 %
— 39
— 49
— 58
— 18
— 12% — 14%

1952 Monthly Review Index— Federal Reserve Bank of St. Louis
P AGE N U M B E R GU IDE
Month of Issue
Month of Issue
Pages
January ..............
1-12
July ....................
February ........... .
August ..............
13-24
March ................
25-36
September ..........
April ..................
37-52
October ..............
November ..........
May
53-68
December ..........
June ............................. 69-85

Pages
.. 86-97
.. 98-113
..114-130
..131-154
..155-170
..171-186

Page
Agriculture
Mechanization of Eighth District Agriculture
171
Charts
Acres of Cropland Harvested per Tractor
176
Agricultural Non-Real Estate Debt
179
Cash Farm Income
21
Farm Machinery and M otor Vehicles on Farms
178
Horses, Mules and Tractors on Farms
172
Prices Received and Paid by Farmers
21
Maps
Index of Farm Operator Level of Living, 1950
177
Per cent of Farms with Tractors, 1945
175
Per cent of Farms with Tractors, 1950
174
Tables
Acreage and Prospective Production of Corn, Eighth
District States, July 1
113
Acreage Goals for 1952— Eighth District States
9
Acreages of Cotton and Soybeans, Eighth District
States, July 1
113
Cash Farm Income
9, 20, 36, 51, 68, 97, 130, 153, 170, 186
Change in Farm Land Values in the Eighth District
21
Estimated Hay Production and Pasture
Condition, Eighth District States, August 1;
September 1, 1952
130, 153
Estimated Production for Major Crops,
Eighth District, August 1, September 1,
October 1, November 1, 1952
130, 153, 170, 186
Estimated Soybean and Cotton Production,
Eighth District States, August 1
130
Farm Output and Labor Input, U. S.
173
Farm Real Estate Prices
170
Farms in District States Classified by Cropland
Harvested, 1950
176
Livestock on Farms in Eighth District States
34, 35
Mechanical Equipment on Eighth District Farms, 1950 172
Production of Major Crops in 8th District and U.S.
20
Prospective Plantings Eighth District States, 1952
68
Receipts and Shipments at National Stock Yards—
9, 20, 36, 51, 68, 85, 97, 113, 130, 153, 170, 186
Winter Wheat Production
68
See, also, Agriculture under Business Conditions
Balance of Trade
The Eighth District Balance of Trade
69
Charts
Pattern of District Trade with Rest of the W orld
72
Share of National Market Located in Eighth District
78
Tables
Interindustry Commodity Flows—
Eighth Federal Reserve District
Inserted before 78
The Largest Amount of Net Imports Flowed from
Industries of L ow Worker-Productivity
74
Net Export-Import Pattern Reflects District
Specialization
72
Net Exports from the Districts Centered in
High-Value-Added Industries
73
Net Exports of Agriculture Dominate District
Balance of Trade
71
Bank Reserves and the Flow of Funds
Norman N. Bowsher
155
Banking and Finance
Bank Reserves and the Flow of Funds
155
Member Bank Earnings and Expenses
37
The 1952 Deposit Ownership Survey
41
Postwar Investment Trends and Secondary Reserve
Policies of Eighth District Member Banks
25
Sources and Uses of Eighth District Funds in 1951
53
Charts
Corporations Stepped Up Their Capital
Expenditures in 1951
55

Page
Debits to Deposit Accounts
^
129
Estimated Consumer Instalment Credit, Eighth
District Commercial Banks
151
Float, Eighth Federal Reserve District
159
Monetary Gold Stock of the United States
11
Money Supply
16
Notes Outstanding, Federal Reserve Bank of St. Louis 157
Percentage Distribution of Earning Assets
27
Maps
Deposit Movements in 1951
42
District and Branch Regions, Federal Reserve System 161
Net Flow of Funds
163
Tables
Assets of Life Insurance Companies in the U. S.
36
Bank Management of Net Current Earnings
39
Bank Use of Funds
40
Debits to Deposit Accounts—
10, 24, 36, 52, 67, 84, 96, 111, 129, 152, 170, 185
Demand Deposits of Individuals, Partnerships
and Corporations
42
Eighth District Member Bank Assets and
Liabilities by Selected Groups—
11, 24, 36, 52, 66, 84, 96, 112, 129, 152, 169, 185
Factors Affecting Eighth District Member Bank
Reserves (N et)
162
Flow o f Funds In and Out of the Eighth District
164
Ownership of Demand Deposits of Individuals,
Partnerships and Corporations
43
See, also, Banking and Finance under Business Conditions
Business Conditions
1951: A Year of Progress and Stability
13
Review and Outlook
1
Survey of Current Conditions— Eighth District
Agriculture
9, 34, 50, 67, 85, 97, 113, 129, 153, 170, 186
Banking and Finance—
10, 35, 51, 66, 83, 96, 111, 128, 151, 169, 184
Construction
33, 49, 64, 82, 94, 110, 126, 148, 167, 182
Employment 6, 31, 48, 62, 80, 93, 108, 125, 147, 166, 181
Industry
7, 32, 48, 63, 80, 93, 109, 125, 147, 166, 181
Trade
8, 33, 49, 65, 82, 95, 110, 127, 150, 168, 183
Census Econom ic Areas, see, Econom ic Geography
Construction
Chart
Value of Construction Contracts Awarded
15
Tables
Building Permits—
8, 24, 33, 49, 64, 81, 94, 109, 126, 149, 167, 182
Status of Defense Housing Eighth Federal Reserve
District, August 20, 1952
150
Total Construction Contracts Awarded
First Half of Year
127
Residential: First Eight Months
149
See, also, Construction under Business Conditions
Consumer Expenditures
Table
Personal Expenditures— 1950
58
Department Stores
See Retail Trade; Trade under Business Conditions
Econom ic Geography
Features of the Econom ic Geography of the
Eighth District
114
Maps
Census Economic Areas Extend Beyond District Lines 120
Census Economic Areas Show the District’s Diversity—
Inserted before 123
The District Has a Generous Pattern o f Rivers
116
District’s Continental Position
115
Eighth District Cities over 10,000 Population
122
Income Areas Are Generally Subdivisions
o f Econom ic Areas
121
Physiography of the Eighth District
118
The Eighth District Balance of Trade
Guy Freutel
69
Eighth District Income in 1951
W erner Hochwald
131
Eighth District Industrial Development and the Defense
Mobilization Program
William H. Kester
86
Electric Power, A Resource for District Development
W illiam H. Kester
98

Page
Page
Member Bank Earnings and Expenses
Electric Power
E. Francis DeVos, Catherine Passiglia
Electric Power, A Resource for District Development
98
37
1951: A Year of Progress and Stability
Charts
13
The 1952 Deposit Ownership Survey
Generating Capacity and Peak Loads in Eighth
Wm. J. Abbott, Jr., Norma B. Lynch
Federal Reserve District
102
41
Postwar Investment Trends and Secondary Reserve
Industrial Electric Power in Eight District Costs Less
Policies of Eighth District Member Banks
Than United States Average
106
Norman N. Bowsher
Use of Electric Energy Has Increased Tremendously
99
25
Prices
Map
Tables
Monthly Electric Power Costs for Communities
Consumer Price Index—
over 2,500
106
6, 24, 31, 47, 62, 79, 92, 108, 124, 147, 166, 181
Tables
Retail Food—
Capacity and Expansion of Electric Utility Systems
6, 24, 31, 47, 62, 79, 92, 108, 124, 147, 166, 181
Serving the Eighth District
^
103
Wholesale Prices in the United States—
Existing and Undeveloped Hydroelectric Power
6, 24, 47, 62, 79, 92, 108, 124, 147, 166, 181
Capacity in the Eighth Federal Reserve District
105
Retail Credit Sales in 1951
Hydroelectric Developments Currently in Operation,
Alfred C. Kearschner, Marie C. Wahlig
45
in Arkansas and Missouri
105
Retail Trade
Municipal Electric Power Systems
101
Retail Credit Sales in 1951
45
Net Monthly Bill for 100 Kilowatt-Hours Residential
Revised Indexes of Eighth District Department Store
Service by Utility Ownership
106
Sales and Stocks
12
Potential Hydroelectric Power Developments
104
Third-Quarter Retail Sales and Outlook in the
Tax-Aided Expansions in the Eighth Federal
Eighth District
143
Reserve District
104
Charts
See, also, Industry; Industry under Business Conditions
Distribution of Sales in Nine Trade Lines
45
Employment
Eighth District Department Store Sales
22
Charts
Revised Monthly Indexes of Eighth District
Manufacturing Employment by Value Added
Department Store Sales and Stocks
12
Per W orker
73
Tables
Nonagricultural Employment, U. S. and Eighth
Department Stores, Sales and Stocks—
District Cities
19
Indexes of Department Store Sales and Stocks—
Table
8,
23, 34, 50, 65, 82, 95, 110, 127, 150, 168, 183
Average Hours and Earnings in Manufacturing
Percentage Distribution of Furniture Sales—
Industries
166
Retail Furniture Stores—
See, also, Employment under Business Conditions
Specialty Stores—
Features of the Economic Geography o f the Eighth District
8,
23, 34, 50, 65, 83, 95, 110, 127, 150, 168, 183
Harry B. Kircher
114
Summary Data of the 1951 Retail Credit Survey
46
Gross District Product
See, also, Trade under Business Conditions
Table
Review and Outlook
Gross Product or Total Expenditure
76
Delos C. Johns
1
Sources and Uses of Eighth District Funds in 1951
Income
Werner Hochwald
53
Eighth District Income in 1951
131
Special Articles
Charts
Bank Reserves and the Flow of Funds
Income Charts
134, 135
Maps
Norman N. Bowsher
155
The Eighth District Balance of Trade
Growth of Total Income
141
Guy Freutel
69
Per Capita Income
140
Tables
Eighth District Income in 1951
Werner Hochwald
131
Eighth District Income Areas
138, 139
Eighth District Industrial Development and the
1951 Income Payments to District Residents
Defense Mobilization Program
Amounted to $12.5 Billion, or $1,180 Per Capita
133
William H. Kester
86
Industry
Electric Power, A Resource for District Development
Eighth District Industrial Development and the
William H. Kester
98
Defense Mobilization Program
86
Features of the Economic Geography of the
,Charts
Eighth District
District Industries Expand
87
Harry B. Kircher
114
Industrial Consumption of Electric Power, 1950-1951
18
Mechanization of Eighth District Agriculture
St. Louis and Arkansas Gain Most
89
Donald L. Henry
171
Tables
Member Bank Earnings and Expenses
Coal Production Index—
E. Francis DeVos, Catherine Passiglia
37
7, 24, 32, 48, 63, 81, 94, 109, 126, 148, 167, 182
1951: A Year of Progress and Stability
13
Consumption of Electricity—
The 1952 Deposit Ownership Survey
7, 18, 32, 48, 63, 81, 94, 109, 125, 148, 167, 182
Wm. J. Abbott, Jr., Norma B. Lynch
41
Crude Oil Production— Daily Average—
Postwar
7,
18, 32, 48, 63, 81, 109, 126, 148, 167,
182 Investment Trends and Secondary Reserve
Policies of Eighth District Member Banks
Loads Interchanged for 25 Railroads at St. Louis—
Norman N. Bowsher
25
7,
18, 32, 48, 63, 81, 94, 109, 126, 148, 167, 182
Retail Credit Sales in 1951
Shoe Production Index—
Alfred C. Kearschner, Marie C. Wahlig
45
24, 32, 63, 81, 94, 109, 126, 148, 167, 182
Review and Outlook
See, also, Industry under Business Conditions
Delos C. Johns
1
Input-Output, see, Balance of Trade
Sources and Uses of Eighth District Funds in 1951
Loans
Werner Hochwald
53
Charts
Third-Quarter Retail Sales and Outlook in the
Bank Loans to Farmers, Amount Outstanding
85
Eighth District
143
Business and Agricultural Loans
35, 51, 184
Survey of Current Conditions, see, Business Conditions
Short-Term Business Loan Rates
67
Third-Quarter Retail Sales and Outlook in the
Total Loans, All Eighth District Member Banks
17
Eighth District
143
Table
Wholesale Trade
Bank Loans to Farmers
85
Table
Wholesaling—
Mechanization of Eighth District Agriculture
Donald L. Henry
171
6, 24, 33, 49, 64, 81, 93, 111, 128, 150, 167, 183

Full text of Review (Federal Reserve Bank of St. Louis) : December 1952

FRASER