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MONTHLY REVIEW Of Agricultural, Industrial, Trade and Financial Conditions in the Eighth Federal Reserve District Released for Publication On and After the Morning of December 30,1930 J O H N S. W O O D , Chairman and Federal Reserve Agent FEDERAL RESERVE O NTINUING the recessionary trend of recent months, industry and trade in this district during November and early December reached the lowest levels of the year. The usual seasonal contraction in manufacturing activities, particularly in iron and steel, lumber, fire clay prod ucts, and machinery of all descriptions, was more marked than in previous years, due to slack demand occassioned by country wide depression. Distribu tion, while making a relatively better showing than production, also reflected the effects of the univer sally restricted purchasing of commodities. In vir tually all merchandising lines investigated, the vol ume of November sales was smaller than during the preceding month and the corresponding period last year. In a large majority of instances, the Novem ber totals were below the average for that month during the past decade. Reports of retail establish ments indicate relatively heavier declines in sales of goods in the luxury category than in the case of necessities and staple merchandise. As has been the case since early in the year, manufacturers are making up few goods for which they have not actual orders or reasonably certain sales prospects. Commitments for raw materials, in turn, are in unusually small volume, with advance ordering for first quarter of the new year require ments in many important industries substantially below the average at this season. Price declines of both raw and finished materials have served to cre ate uncertainty and emphasize the policy of caution in commitments of manufacturers and merchants. A favorable result of the curtailed manufacturing ac tivity and conservative buying by merchants is the generally strong position of stocks. Inventories have been steadily decreasing in many important lines, and at the end of the year will have reached a point where replenishment will become necessary to meet current replacement needs. C Through the south, wholesale and retail trade has been adversely affected by the decline in prices of cotton, tobacco and rice, also by the tying up of funds as a result of recent bank failures. Depressed prices of cereals, live stock and other farm products C. M . STEW ART, Assistant Federal Reserve Agent BANK h V IO N P A P IN , StmttitMan OF ST. L O U I S has served to reduce purchasing power elsewhere in the rural areas. According to the Employment Ser vice of the Department of Labor, the surplus of workers generally through the district increased dur ing November. Seasonal unemployment due to re leases of workers through completion of harvests was considerably augmented by reduced activities at manufacturing plants and by termination of work on buildings and other construction projects. There was a moderate gain in employment in retail estab lishments incident to the Christmas holiday trade, also in tobacco producing sections. Considerably less than the usual seasonal pickup in employment of miners in the anthracite fields of the district was noted. According to the group of dealers reporting to this bank, distribution of automobiles in November was the smallest for any month this year except January. Department store sales in the principal cities of the district decreased 10.0 per cent in November as compared with October, and 21.0 per cent as compared with November, 1929. The cumu lative total for the year to December 1 showed a de crease of 10.0 per cent as contrasted with the same period last year. Combined sales of all wholesale and jobbing firms reporting to this bank were onethird smaller in November than during the preced ing month, and one-fourth less than in November, 1929. Charges to individual checking accounts in November were about 17.0 per cent smaller than in October and 31.0 per cent less than in November, 1929. The cumulative total for the year to Decem ber 1 was smaller by approximately 17.0 per cent than for the corresponding period in 1929. There was a slight decline in the amount of savings ac counts between November 3 and December 3, due mainly to withdrawal of Christmas funds. Freight traffic of railroads operating in this dis trict continued during November to run consider ably below the volume at the same time during the preceding several years. The movement of seasonal commodities, notably coal and coke, failed to show the usual pick up, and reflecting curtailed distribu tion of merchandise, there were sharp declines in the miscellaneous freight and merchandise classifi cations. The volume of live stock and farm products generally hauled during the month also showed un usually heavy decreases. For the country as a whole, loadings of revenue freight for the first 48 weeks this year, or to November 29, totaled 43.103,568 cars, against 49,489,591 cars for the corresponding period in 1929, and 48,072,852 cars in 1928. The St. Louis Terminal Railway Association, which handles inter changes for 28 connecting lines interchanged 166,395 loads in November, against 194,613 loads in October, and 197,835 loads in November, 1929. During the first nine days of December the interchange amount ed to 47,235 loads, against 54,121 loads during the corresponding period in November, and 62,935 loads during the first nine days in December, 1929. Pas senger traffic of the reporting roads in November decreased 18.0 per cent as contrasted with the same month last year. Estimated tonnage of the Federal Barge Line between New Orleans and St. Louis in November was 83,000 tons, against 102,569 tons in October, and 103,478 tons in November, 1929. Spotty and irregular conditions were reflected in reports bearing on collections during November and the first half of December. This was true of dif ferent localities and the several lines, also of indi vidual interests in the same line. Taken as a whole, however, there was little, if any betterment as con trasted with the preceding three or four months. Wholesalers and jobbers in the large cities report that good accounts, that is, those enjoying a strong credit position, are paying promptly. In many in stances such debtors are availing themselves of the prevailing low interest rates to borrow and dis charge their obligations in order to obtain discounts. On the other hand, slow accounts are becoming slower and greater difficulty is experienced in ob taining settlements. Requests for extensions and longer datings are more numerous than heretofore. Liquidation in the agricultural areas is in less than the usual seasonal volume. Country merchants com plain of slow payments, due in a measure to a dis position of farmers to hold their products for more favorable marketing conditions. This in turn has held down liquidations with country banks. Retail ers in the large cities report a slowing down in col lections, particularly noticeable in the case of goods purchased on time payment plan. Answers to ques tionnaires addressed to representative interests in the several lines scattered through the district showed the following results : ^Excellent November, 1930................% October, 1930......... 1.4 November, 1929......... 2.7 G ood Fair P oor 10.0% 8.5 22.7 65.0% 67.6 65.3 35.0% 22.5 9.3 Commercial failures in the Eighth Federal Re serve District in November, according to Dun’s numbered 92, involving liabilities of $3,870,162, against 118 failures with liabilities of $3,505,807 in October, and 126 defaults for a total of $1,773,236 in November, 1929. The average daily circulation in the United States in November was $4,528,000,000 against $4,501,000,000 in October and $4,845,000,000 in November, 1929. MANUFACTURING AND WHOLESALING Boots and Shoes — Sales of the reporting firms during November were the smallest for any month this year, and the total was about one-third less than in November, 1929, and in October this year. Inventories continued the steady decline noted in recent months, stocks on December 1 being smaller by 7.0 per cent and 5.0 per cent, respectively, than thirty days and a year earlier. Prices were lower, reductions averaging about 3.0 per cent as compared with the month before being announced by several leading interests. As contrasted with a year ago, average prices on December 1 showed a decline of about 8.0 per cent. Demand for overshoes was slow, with sales the smallest for any similar period in re cent years. There was a further slight decrease in factory activities as compared with the preceding thirty days. Clothing — There was the usual heavy seasonal decline in sales of the reporting clothiers from November to December, and as compared with a year ago, the November total showed a decrease of about one-fourth. Unusually mild weather tended to hold down distribution of winter apparel. While stocks of both jobbers and retailers are of moderate proportions, there is a general disposition to post pone replenishing, purchasing being held close to actual requirements. Drugs and Chemicals — Marked decrease in de mand for heavy drugs and chemicals and a heavy falling off in purchasing of holiday goods and sun dries were responsible in large measure for a de crease in November sales of 18.0 per cent as com pared with the same month in 1929, and of 10.0 per cent as compared with the October total this year. Stocks continued to decline, the aggregate on De cember 1 being slightly less than a month earlier, and about 11.0 per cent below that on December 1, 1929. Luxury goods are selling in considerably smaller volume than in recent years, and warm weather has adversely affected the movement of seasonal merchandise. Dry Goods — The downward trend in this clas sification noted in recent months continued during November and early December. Purchasing by re tailers is on very conservative lines, and mainly for immediate consumption. The decline in raw cotton and uncertainty prevailing in markets for other raw materials had a tendency to restrict commitments on finished goods. There was a further reduction in inventories, stocks on December 1 being about 6.0 per cent smaller than a month earlier, and fully onefifth smaller than on December 1, 1929. November sales of the reporting firms were approximately onefifth and one-third smaller, respectively, than thirty days and a year earlier. Since the last week of November, reordering of holiday goods has been in considerable volume. Electrical Supplies — According to the report ing firms, the movement of holiday and seasonal merchandise during the past two months has been the smallest for any similar period in a number of years. Radio sales declined heavily as compared with a year and two years ago. The outlet through the building and automotive industries continues restricted. Sales of the reporting firms in November fell 43.0 per cent below a year ago, and 16.0 per cent below the October total this year. Stocks on Decem ber 1 were 12.0 per cent larger than on the same date in 1929, and 10.0 per cent less than on November 1 this year. Flour — Production at the 12 leading mills of the district in November totaled 398,617 barrels, against 426,184 barrels in October, and 395,562 bar rels in November, 1929. Stocks of flour in St. Louis on December 1 showed little variation as compared either with a month or a year earlier. During the last half of November and early this month there was an increase in inquiries, and a better undertone generally through the trade. The upturn in wheat prices had a tendency to restore confidence, and specifications on old orders expanded somewhat. New sales, however, showed no material increase, and activities were confined chiefly to the domestic trade. Aside from routine transactions with LatinAmerican countries, export business was almost entirely absent. Throughout the period low grades and clears were in relatively better demand than high grade flours. Mill operations were at from 50 to 55 per cent of capacity. Furniture — November sales of the reporting firms in this classification recorded the lowest total for any month in more than six years. Ordering of holiday goods was considerably below expectations, and the general line of home furniture and furnish ings was quiet. Purchasing of office furniture and equipment showed no change from the small volume of recent months. Sales of the reporting interests in November were only about one-third as large as for the same month in 1929, and less than half as large as in October this year. Stocks showed no change worthy of note as compared with a month earlier, but were a fourth larger than a year ago. Groceries — Heavily reduced demand for holi day goods and luxuries generally was cited as a con tributing cause for a decrease in November sales of the reporting firms of 18.0 per cent as compared with the same month last year. As contrasted with the October total this year, November sales showed a decrease of 15.0 per cent. Stocks on December 1 were slightly smaller than a year earlier, and 10.0 per cent less than on November 1 this year. Hardware — A further decline in business vol ume, both as compared with a month and a year ago, took place in this classification. November sales of the reporting firms were about a third smaller than for the same month in 1929, and smaller by more than one-fifth than the October total this year. Stocks on December 1 were 4 per cent and 16.0 per cent smaller respectively, than a month and a year earlier. Iron and Steel Products — Activities in the iron and steel industry in this district during the past thirty days dropped to the lowest point of the pres ent downward movement. While shipments of fin ished and semi-finished materials sustained a further decrease, and in November were the smallest for any month this year, unfilled orders on December 1 were measurably below those thirty days earlier. New buying and specifying on materials previously acquired by the automotive industry were below ex pectations, except in the case of a limited number of producers who were arranging to bring out new models. Inquires and new orders coming from the railroads were in somewhat larger volume than dur ing the preceding month, but these activities had not progressed sufficiently far to be reflected in work at mills and foundries of this district. The outlet through the building industry continued restricted, except for certain commodities to be used in outdoor engineering projects, notably highway construction and municipal and public utility work. Demand from the general manufacturing trade failed to show betterment, and in a number of lines was less active than heretofore. Producers of sheets, plates, bars, and kindred commodities reported demand through November at a low ebb. Sheet prices for the first quarter of 1931 were announced, but failed to elicit any substantial volume of purchasing. Continued dullness obtained in the call for wire and wire prod ucts, with advance sales of fencing materials the lightest at this particular time in more than a decade. Distributors of iron and steel goods from ware houses reported buying on an absolute necessity basis, with individual orders of unusually small size, and the total showing considerably more than the seasonal decline. Fabricators of reinforcing concrete bars reported moderate improvement during late November and early December, both in actual awards and prospects. Structural steel fabricators, however, noted no change from the quiet conditions obtaining in their line since early spring. Manu facturers of stoves and heating apparatus increased their operations slightly during November, but ship ments continued substantially below the usual sea sonal average. While some progress was made in price stabilization as a whole, lack of uniformity was still in evidence, particularly in the case of raw materials. Pig iron declined further to the lowest levels in many years. The price recession, however, has failed thus far to stimulate buying. Engage ments for first quarter of 1931 use are negligible. Scrap iron and steel prices also receded to a new low point on the present downward movement. For the country as a whole, production of pig iron in November slumped to the lowest average daily rate since 1924. The total, 1,865,415 tons, compares with 2,165,374 tons in October and 3,182,420 tons in November, 1929. Steel ingot production in the United States in November totaled 1,806,109 tons, against 2,165,374 tons in October, and 2,796,214 tons in November, 1929. AUTOMOBILES Following the seasonal trend during the past several years, sales of automobiles in this district declined in November as compared with the preced ing month. The decline, according to reporting dealers, was considerably less than the average during the past decade, but this was due to the unusually small October volume, the November total being the smallest for that month since these records have been compiled^ November was the ninth consecutive month in which the volume of distribution fell below that of the corresponding period a year earlier. As has been the case through out this year, decreases reported by country dealers were relatively larger in both the monthly and year ly comparisons than was the case with interests in the larger centers of population. Reduced farm in come, due to drouth, crop shortages and the de pressed prices of farm products, adversely affected business in the rural areas. Unemployment and a general disposition to conservatism were in a large measure responsible for the decreased sales in the cities. Ordering of new cars from producers by the reporting dealers is confined to absolute necessities, inventories at the end of November being the small est in more than six years. Certain distributors who ordinarily purchased in carlots, are now ordering from two to six vehicles at a time. November sales of the reporting dealers were about one-tenth small er than in October and 37.0 per cent less than in November, 1929. Stocks of new cars in dealers’ hands on December 1 were 2.6 per cent smaller than on November 1, and one-third less than on December 1, 1929. Reports relative to the used car market reflected spotted conditions, some dealers indicating a fairly active trade, while others reported continued apathy. Due to the small number of sales of new cars and consequent light receipts on trades, dealers’ stocks of secondhand vehicles on December 1 showed a slight decrease from a month earlier, and the total was approximately a fourth less than a year ago. The investment value of used car inven tories on December 1 was less than half as large as on the same date in 1929. As has been the case since early in the year, business in parts and accessories was relatively much better than in automobiles proper. The explanation of this is found in a uni versal disposition to repair and recondition old cars rather than replace them. According to dealers re porting on that detail, sales of new cars on the de ferred payment plan in November constituted about 49.0 per cent of their entire sales, against 54.0 per cent in October, and 51.2 per cent in November, 1929. RETAIL TRADE The condition of retail trade is reflected in the following comparative statement showing activity at department stores in leading cities of the district: N e t sales com parison Stocks on hand Stock turnover N o v . 1930 11 m onths ending N ov. 30, 1930 Jan. 1, to N ov. 30, com p, to N ov. 30, 1930 to com p, to 1930 1929 N o v . 1929 same period 1929 N o v 30, 1929 — 6. 0 % 1.82 2.05 ~ — 7.9% Evansville ........ — 2 0.0% — 17.2 2.19 2.27 — 12.9 L ittle R o ck ........ .— 26.6 + 7.0 — 10.0 2.53 2.88 Louisville ......... — 23.3 2.69 2.95 — 6.2 — 31.5 — 14.5 2.33 2.41 .— 25.0 — 4.3 — 2.6 — 7.9 3.45 3.64 — 9.4 .— 17.2 — 19.0 1.56 1.47 — 8.6 Springfield, M o. .— 10.0 3.03 3.23 — 10.4 — 6.9 8th D istrict........ .— 21.1 Stocks on hand N et sales com parison N o v. 1930 com p, to N ov. 1930 com p, to * N o v . 1929 O ct. 1930 N ov. 1929 O ct. 1930 — 15.8% — 4 .3 % M en’s furnishings.......... ..— 30.3% — 7 .9 % " — 14.1 — 1.9 B oots and shoes................— 14.6 — 9.1 Department Store Sales by Departments — As reported by the principal department stores in Little Rock, Louisville, Memphis, and St. Louis. P ercentage increase o r decrease N o v . 1930 com pared to N ov. 1929 N e t sales Stocks on hand fo r month at end o f m onth P iece go o d s........................................... — 2 5.7 % — 11.2 % R eady-to-w ear accessories.................— 22.3 — 2.5 W o m e n and misses’ ready-to-wear..— 26.3 — 19.6 M en’ s and boys’ wear......................... — 29.1 — 8.0 H om e furnishings................................ — 21.0 — 7.7 BUILDING The dollar value of permits issued for new con struction in the five largest cities of the district in November fell slightly below the October total, which, with the exception of January, was the small est for the year. As compared with last year, the November total recorded a decrease of almost onehalf. According to statistics compiled by the F. W . Dodge Corporation, contracts let in the Eighth Federal Reserve District in November amounted to $15,529,723 the smallest total since last January, and comparing with $31,705,045 in October, and $18,679,021 in November, 1929. Production of Port land cement for the country as a whole in Novem ber totaled 11,098,000 tons, against 14,410,000 tons in October, and 14,053,000 tons in November, 1929. Building figures for November follow : Evansville .. Little R ock Louisville .. M em phis .... St. Louis.... N ew Construction Perm its *C ost 1930 1929 1930 1929 220 $ 80 $ 287 2 71' 17 57 73 45 102 176 678 58 214 186 283 328 270 675 355 878 779 N ov. totals 959 $1,271 1,283 O ct. totals 973 1,242 Sept. totals 1,414 1,372 2,959 * I n thousands (000 om itted ). $2,244 2,246 4,181 Repairs, etc. Perm its *C ost 1930 1929 1930 1929 27 30 6 $ 16 29 69 8 20 29 31 72 105 65 172 34 85 280 330 288 555 430 704 677 632 968 934 $ 408 462 420 $781 1,392 1,149 CONSUMPTION OF ELECTRICITY Public utilities companies in the five largest cities of the district report consumption of electric current by selected industrial customers in Novem ber as being a third less than in October, and about 20.0 per cent smaller than in November, 1929. In the yearly comparison declines were shown in vir tually all lines, but were particularly heavy in the case of iron and steel plants, coal mines, railway shops and furniture factories. In the month-tomonth comparison considerably more than the usual seasonal decline was noted in a majority of indus tries. Detailed figures follow : N o. of N ov. O ct. C ustom 1930 1930 ers * K .W .H . *K .W .H » 1,728 1,948 Evansville .... 40 L ittle R ock.. 35 1,421 2,375 6,353 L ouisville ..... 85 7,566 M em phis ...... 31 1,868 1,816 St. L ou is......154 13,378 21,393 N ov. 1930 com p, to O ct. 1930 — 11.3% — 40.2 — 16.0 + 2.9 — 37.5 Totals....345 24,748 * I n thousands (000 om itted ). — 29.5 35,098 N ov . N o v. 1930 1929 com p, to * K .W .H . N o v . 1929 1,424 ' + 2 1 .3 % 1,627 — 12.7 6,409 — 0.9 1,942 — 3.8 19,180 — 30.3 30,582 — 19.1 AGRICULTURE Conditions generally through the Eighth Dis trict during the past thirty days were favorable for agricultural activities. Temperatures were mild for the season, and with an alternation of rainy and clear days, farmers were able to accomplish a con siderable amount of field work, besides the ordinary routine operations. For the most part harvesting of late crops was completed under auspicious con ditions, and housing and the movement of these products made good progress. Late fall and winter plowing was facilitated by needed moisture, and this work in many sections is further advanced than the average at this season. Growing grain crops for the most part made good headway, and winter wheat is entering the cold weather in a strong position. The United States Department of Agriculture's December report, giving final estimates of produc tion, showed only minor variations from the November 1 forecasts of the chief crops in this dis trict. Considerable unevenness in quality is dis closed in the case of certain important productions, notably corn, tobacco, and cotton. Effects of the drouth are more apparent as final stock is taken of the year’s results. The movement of cotton from producers’ hands to the gins has been rapid, but due to low prices there is a disposition on the part of planters to withhold their stocks from market. The tobacco markets opened yearly in December, with offerings in about the expected volume. Cereal prices, notably corn and wheat, advanced during late November and early this month from the extreme low level of the year, reached in the second week of November, but continued considerably be low a year ago, and the average during the past decade. Cotton declined to a new low on the crop, and prices of hogs continued the recession of recent months, selling in the second week of December at the lowest level in many years. There was no change worthy of note in the status of farm labor during November, except what was due to seasonal consid erations. In all sections a surplus exists, augmented by heavy releases of temporary help by completion of late harvests. Com — Except in a limited number of localities where delayed by rains, husking has made rapid pro gress, and cribbing is generally nearer completion than usual at this time of year. These operations have speeded up because of actual need of the grain for feeding livestock and for shipping to areas where scarcity exists. Latest husking yields tend to con firm earlier official forecasts of production, but are disclosing an usually large percentage of low grade corn. Ears are light and chaffy, and as a result of the drouth and insect infestation, mould and rot are prevalent, particularly in the case of early planted corn. A considerable portion of the arrivals at pri mary points is grading No. 3 and lower. Generally throughout the district prime seed corn is scarce, and farmers will be obliged to purchase supplies elsewhere for planting next year. In surplus coun ties, farmers are in many instances able to obtain more favorable prices locally than could be realized by shipping to primary markets. crop able full crop Winter Wheat — Planting of the winter wheat has been completed, and with generally favor weather farmers were able to carry out their intentions relative to acreage. The growing has been materially benefitted by recent rains, and except in a relatively few counties, soil condi tions are good, with subsoil moisture sufficient to carry well into the winter. More extensive pastur ing of wheat fields in Missouri, Illinois and Indiana was noted this fall than has been the case in more than two decades. The snow fall thus far has been light, but due to the relatively mild temperatures, that protection for the crop has not been urgently needed. Fly infestation is below average, and con fined to scattered localities. Live Stock— Mainly favorable weather since breaking of the drouth has proved beneficial to live stock generally through the district. Herds are for the most part in good condition for carrying through the winter. Pastures in the south were benefitted by low temperatures and rains, with the result that farmers have been able to manage with less pre pared feed than seemed possible six weeks or two months earlier. Receipts and shipments at St. Louis as reported by the National Stock Yards, were as follows: R eceipts N ov. O ct. N ov. 1930 1930 1929 Cattle and calves........ 87,891 140,285 ‘ 99,098 H o g s ..............................273,429 304,663 317,820 H orses and m ules...... 2,208 2,167 5,865 Sheep ............................ 29,808 65,421 36,280 Shipments N ov. O ct. N ov. 1930 1930 1929 55,956 92,541 70,288 223,734 250,431 225,090 1,847 2,360 5,675 7,289 34,397 11,657 Cotton — According to the U. S. Department of Agriculture, prospects for cotton in states partly or entirely within the Eighth Federal Reserve Dis trict underwent a decline between November 1 and December 1. Combined yield in Missouri, Arkansas, Tennessee and Mississippi is estimated by the Department based on December 1 condition, at 2,970,000 bales, a decrease of 85,000 bales as con trasted with the November 1 forecast, and compar ing with 4,085,000 bales produced in 1929 and 3,296,000 bales in 1928. The last half of November and early December were moderately favorable for har vesting the remnants of the crop, but there was lit tle cotton left in the fields, the harvest in most sec tions being nearer to completion on December 1 than on any similar date since 1922. Reports relative to quality show considerable unevenness, with effects of the drouth and other disabilities during the grow ing season being manifest in final results. Demand for cotton developed no change worthy of mention as compared with the preceding two or three months. Prices fluctuated within a narrow range, but with the trend downward. In the second week of December the price dropped to the lowest point in fifteen years and about three cents a pound below the level shortly before the exchanges were closed at the outbreak of the World War. In the St. Louis market the middling grade ranged from 8*4c to 9.35c per pound between November 17 and December 15, closing on the latter date at 8*^c, against 9.35c on November 17 and 15^c on the corresponding date in 1929, and 19c in 1928. As has been the case since early fall, there is a disposition on the part of pro ducers to hold their cotton for more favorable mar kets. Total receipts at Arkansas warehouses from August 1 to December 12 were 724,217 bales, which compares with 1,117, 953 bales for the corresponding period last year. Stocks in these warehouses on De cember 12 totaled 376,408 bales, against 357,127 bales on November 14, and 385,027 bales a year ago. Tobacco — The favorable season enabled farm ers to strip and prepare large quantities of tobacco for the opening of the markets. Initial prices paid in the dark tobacco districts were disappointing, and resulted in numerous rejections of sales and holding for better prices. The more desirable grades showed relatively smaller declines than lugs and common leaf as compared with opening prices last year. Due to the drouth, less desirable quality appeared at the opening sales than was the case in 1929. The burley tobacco markets opened during the second week of December, and while much short, common tobacco was present in early deliveries, prices realized were mainly satisfactory to producers, though about $4 per cwt. below last year’s averages. To December 12, the average price at this season's sales in the several districts, as compared with the average for the entire season in 1929, were reported as follow s: 1930 (P e r cw t.) H opkinsville D ark F ired........................................................ $7.90 Paducah Dark F ired...................... ........................................... 5.93 H enderson Dark F ired............................................................. 9.10 Burley ...........................................................................................17.80 One-Sucker ................................................................................. 7.50 Green R iver.................................................................................. 8.70 1929 (P e r cw t.) $13.00 10.00 9.50 21.40 10.50 10.70 Commodity Prices — Range of prices in the St. Louis market between November 17, 1930, and December 15, 1930, with closing quotations on the latter date and on December 16, 1929. Close W heat H igh L ow D ec. 15, 1930 D ec. 16, 1929 D ec. .................... per bu..$ .75 54$ .72 $ .75 $ 1 .2 2 ^ M ay ..................... “ .8 0 ^ .74 .78% 1.30J4 July ..................... “ .6954 .69 .6954 1.30 N o. 2 red winter “ .8 6 ^ .8 1 # $ .81 .8354 $ 1.32JS@1.33 N o. 2 hard.......... “ .73 .78 .7 7 5 4® .78 1.23 @ 1 .2 4 Corn D e c......................... “ .78 .69 .71 .89*6 M ay ..................... " .82 .7354 .75 .96H N o. 2 m ixed........ “ .79 .6854 .7154 @ .7254 .8654 @ .87 N o. 2 w hite........ “ .83 .7 2 # .7 3 5 4® .74 .90 @ .9 0 # Oats N o. 2 w hite........ " .3954 .34 .35 @ .35 J4 .4 6 J 4@ .47 Flour Soft patent........per bbl. 5.00 4.30 4.70 @ 5 .0 0 7.00 @ 7 .2 5 Spring patent..... “ 4.90 4.10 4.10 @ 4 .5 0 6.30 @ 6.35 M iddling cotton....per lb. .0935 .$>854 .0854 .15^4 H ogs on h oof........per cw t. 8.60 6.65 6.75 @ 8 .3 5 8.00 @ 9 .5 5 FIN A N C IA L Trends in the banking and financial situation in the Eighth District noted in the preceding issue of this review, continued in effect during the past thirty days. The general business situation was reflected in a further recession in demand for credit from commercial and industrial sources. Needs for carry ing securities were also in smaller volume than here tofore, and due to the depressed prices of farm prod ucts, requirements for financing the movement and marketing of crops were substantially smaller than at this particular season in recent years. As has been the case since early autumn, supplies of loan able funds at commercial banks were in excess of demands, and in order to employ surplus the banks increased their investment holdings. While continuing spotty and irregular, liquida tion as a whole was in considerable volume, which fact was reflected in a noticeable increase in deposits of reporting member banks from the year’s low point, reached in the middle of November. De pressed prices of cotton, tobacco and rice, coupled with the disturbing effects of a number of bank fail ures, served to hold down the volume of business and liquidation generally through the south. Open ing of the tobacco marketing season around Decem ber 1 were marked by an increased demand for funds to finance that crop, aedquate preparations for meet ing which, have been perfected. Settlements of loans by grain handlers and flour milling interests have been in about the usual seasonal volume. There continues a fair demand for funds for conditioning live stock for market. Reporting member banks in the district showed a moderate decrease in loans between November 12 and December 10, and the volume was $69,000,000 or 13 per cent less than on December 13, 1929. De posits of these banks declined in early November, but subsequently recovered, and on December 10 reported the highest total since late August. Their investment trend continued the irregularly upward swing which started last June, and in recent months has received impetus from necessity of keeping sur plus funds employed. Borrowing of all member banks from the Feder al reserve bank described an irregular curve. Fol lowing a decline in late October, there was a sharp increase in late November. Liquidation since then has brought the total bills discounted and held by the reserve bank to approximately half the volume at the corresponding period last year. Holiday re quirements were reflected in the usual seasonal in crease in demand for currency since the middle of November. The extent of this increase, however, was measurably smaller than in recent years. Condition of Banks — Loans and discounts of the reporting member banks on December 17, 1930, showed a decrease of 1.4 per cent as contrasted with November 19, 1930. Deposits increased 2.6 per cent between November 19, 1930 and December 17, 1930 and on the latter date were 1.5 per cent less than on December 18, 1929. Composite statement follows: *D ec. 17, 1930 N um ber of banks reporting............ x26 Loans and discounts (incl. rediscounts) Secured by U . S. G ovt, obligations and other stocks and bonds....$197,879 A ll other loans and discounts.... 279,452 * N ov. 19, 1930 t22 ♦Dec. 18, 1929 25 $202,559 281,428 $253,546 285,456 T otal loans and discounts.................$477,331 Investments U . S. Government securities...... 32,345 Other securities................................ 130,652 $483,987 $539,002 37,733 124,536 37,720 110,042 T otal investments................................ $162,997 Reserve balance with F. R . bank.. 45,840 Cash in vault........................................ 8,567 Deposits N et demand deposits..................... 373,868 T im e deposits.................................. 228,834 Governm ent deposits..................... 1,193 $162,269 41,800 10,838 $147,762 43,904 7,468 355,029 233,269 284 392,053 220,110 892 T otal deposits........................................$603,895 $588,582 $613,055 Bills payable and rediscounts with Federal Reserve B ank................... 3,214 4,836 16,403 * In thousands (000 om itted), tD ecrease due to consolidations, xln crease due to substitutions for closed banks. These 26 banks are located in St. L ouis, Louisville, Mem phis, Little R ock, and Evansville, and their resources represent 53.1 per cent o f the resources of all m em ber banks in this district. Debits to Individual Accounts — The following table gives the total debits charged by banks to checking accounts, savings accounts, certificates of deposit accounts and trust accounts of individuals, firms, corporations and U. S. Government in leading cities of the district. Charges to accounts of banks are not included. *N ov. 1930 East St. Louis & Natl. Stock Yards, 111..$ 33,496 El Dorado, A rk ...... 6,281 Evansville, Ind...... 23,521 F ort Smith, Ark.... 11,764 Greenville, Miss.... 4,045 Helena, A rk .......... 3,441 Little R ock, A rk... 32,618 Louisville, K y ........ 155,957 M emphis, T enn..... 143,640 Ow ensboro, K y ..... 5,932 Pine Bluff, A rk..... 9,043 7,843 Quincy, 111............. St. Louis, M o ........ 572,145 Sedalia, M o ............ 3,793 Springfield, Mo.... 14,264 **Texarkana, A rk.*Tex......... 10,132 ♦Nov. 1929 $41,781 7,008 27,031 12,733 4,186 5,844 39,506 197,615 165,740 6,310 10,650 11,673 681,887 4,196 18,327 $ 46,210 7,783 31,152 14,859 5,834 7,057 61,865 212,530 225,161 6,297 15,172 13,667 810,970 4,757 16,044 11,664 16,115 N ov. 1930 com p, to O ct. 1930 N o v . 1929 — 19.8% — 10.4 — 13.0 — 7.6 — 3.4 — 41.1 — 17.4 — 21.1 — 13.3 — 6.0 — 15.1 — 32.8 — 16.1 — 9.6 — 22.2 — 27.5% — 19.3 — 24.5 — 20.8 — 30.7 — 51.2 — 47.3 — 26.6 — 36.2 — 5.8 — 40.4 — 42.6 — 29.4 — 20.3 — 11.1 — 13.1 — 37.1 Totals....$ 1,03 7,915 ,246,151 $ $1,495,473 — 16.7 * In thousands (000 om itted). ♦♦Includes one bank in Texarkana, T e x a s not in Eighth District. — 30.6 Federal Reserve Operations — During Novem ber the Federal Reserve Bank of St. Louis discount ed for 225 member banks against 208 in October, and 222 in November, 1929. The discount rate re mained unchanged at Zy2 per cent. Changes in the principal assets and liabilities of this institution appear in the following table: Influenced by abundant funds and slack credit demands, interest rates showed a further slight de cline, and at the middle of December reached the lowest levels in more than a decade. At St. Louis banks current rates were as follow s: Prime com U. mercial paper, 2^4 to 5 y per cent; collateral loans, Ay2 to 6 per cent; loans secured by warehouse re ceipts, to 5^4 per cent; interbank loans, Ay2 to 6 Ratio o f reserves to deposits and F. R. N ote Liabilities. per cent and cattle loans, 5 to 6 per cent. *In thousands (000 om itted). (Compiled December 23, 1930) ♦Oct. 1930 1930 .$15,238 . 9,485 . 24,418 1930 $15,993 7,160 14,151 ♦Dec. 19, 1929 $27,907 5,953 25,908 .$49,141 . 84,323 . 71,526 $37,304 79,846 77,615 $59,768 94,479 82,070 . 73.9% 78.5% 68.1% BUSINESS CONDITIONS IN THE UNITED STATES PRODUCTION AND EMPLOYMENT — Industrial production declined about 4 per cent in November accord ing to the Federal Reserve Board's seasonally adjusted in dex. Output of iron and steel decreased further while the number of automobiles produced per working day continued at a low level. Daily average cotton consumption increased further by somewhat more than the usual seasonal amount new low levels. From the end of October to the middle of December there were substantial decreases in prices of many other commodities, including corn, hogs, pork, hides, tin and coffee, while prices of copper and rubber fluctuated widely, declining at the end of the period. BANK CREDIT— Loans and investments of report ing member banks in leading cities declined by about $250,- In d ex number o f production of manufactures and minerals com bined adjusted for seasonal variations (1923-1925 average= 1 0 0 ) . L atest figure, N ovem ber, 84. In d ex of U nited States Bureau of L abor Statistics (1 9 2 6 = 1 0 0 , base adopted b y B ureau). Latest figure, N ovem ber, 80.4. and activity at silk mills continued to increase, while wool consumption decreased by an amount substantially larger than is usual in November. Factory employment and payrolls showed decreases in November, reflecting in part changes of a seasonal charac ter. The number employed in the clothing, and shoe indus tries decreased, by more than the usual amount, while em ployment at silk mills showed an increase contrary to the ordinary seasonal movement. In the industries producing building materials including lumber, cement, and brick, de clines in employment exceeded the usual seasonal propor tions. In the automobile industry employment declined fur ther, but by an amount considerably smaller than is usual in November. Value of contracts awarded for residential build 000,000 during the three week period ending December 10, reflecting a further reduction of $69,000,000 in loans on se curities, and a decline of $196,000,000 in all other loans, off set in part by a further small increase in investments. There was also a decline in time deposits, reflecting in large part withdrawal of Christmas funds. In the following week, December 10 to December 17, changes in the figures for reporting banks reflected in part the closing of a large re porting bank in New York City. This resulted in a decline in the reported assets and liabilities of New York City banks. Reserve bank credit outstanding increased by about $294,000,000 during the four weeks ending December 17, and there was also an addition of $30,000,000 to the country’s stock of gold. Discounts for member banks increased by fe rc e a t PERCENT 120 RAILROAD 1 FREIGHT CAF\ 120 LOADINGS Miscellaneous k\ /V v*AfaIJ V ai*vi #V V * 1\\1 A i J \J \\ 110 100 [Total 100 A* ■A\ n* \- 1 90 \ i 90 60\ .. 110 1926 1927 1928 1929 1930 ' 80 Cars of revenue freigh t loaded as reported by the Am erican Railway A s sociation. In d ex numbers adjusted for seasonal variations (1923-1925 avera g e = 1 0 0 ). Latest figures, N ovem b er: T otal 8 2; msicellaneous, 88. ing and for public works and utilities, as reported by F. W. Dodge Corporation, declined in November and contracts for commercial and industrial building continued at the low levels of other recent months. In the first two weeks of December the daily average of total contracts awarded was somewhat smaller than in November. DISTRIBUTION — Freight car-loadings decreased further in November by more than the ordinary seasonal amount. Expansion of department store sales from October to November was smaller than usual, following a growth in October that was larger than ordinary. WHOLESALE PRICES — The general level of wholesale commodity prices declined further in November according to the Bureau of Labor Statistics and there were additional price declines in the first half of December, when several commodities, including silver and cotton, reached $126,000,000, acceptance holdings of the reserve banks by $74,000,000 and their holdings of United States securities, including one day treasury certificates issued in connection with December 15 fiscal operations, by $96,000,000. The increase in reserve bank credit outstanding reflected a large growth in the demand for currency by the public and by banks, resulting in part from the currency requirements for the holiday trade, and in part from demand for cash from banks and from the public in regions where important bank failures occurred during the period. During November and the first two weeks of December money rates continued fairly steady at extremely low levels, with prime commercial paper at a range of 2^-3 per cent and bankers acceptances at per cent. In the third week of December there was a slight increase in rates for call and time loans on the New York stock exchange. The yields on high grade bonds in creased during the latter part of the period.
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