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FEDERAL RESERVE BANK OF ST. LOUIS
MONTHLY REV!EW
OF BUS!NESS CONDmONS
)N FEDERAL RESERVE D!STRtCT No. &
Released for Publication On and After the Morning of December 31, 1923
WILLIAM McC. MARTIN
CHAIRMAN OF THE BOARD AND FEDERAL RESERVE AGENT
T R R E G U LA R ITIE S which featured business
during the preceding three months continued in
evidence during the period under review. In
some lines results were satisfactory, while in others
a decided slowing down was indicated in reports
of leading interests. Unevenness extended as well
to localities, there being sections in which trade
was all that could be desired, while elsewhere local
influences made for a curtailment of activity. Poor
crops in some areas have resulted in reduced pur
chasing power of agriculturists, and the persistent
dullness in fuel situation is rejected in a contrac
tion of business in the coal Helds. Depression in
the petroleum industry is another factor adversely
affecting trade in specific areas, and unseasonably
warm weather, excessive rains and heavy roads
have interfered with routine distribution of mer
chandise to ultimate consumers, particularly in the
country.
On the other hand in the larger centers of
population and in sections where crops were ample
or prices for farm products high enough to offset
reduced yields, business has been satisfactory.
Sales of department stores, which for November
were 2,6 per cent in excess of the same month a year
a?o, are la d in g somewhat behind the cumulative
figure of 8.0 per cent for the period July 1 to date.
Reports from retailers in rural communities and
small towns indicate that the holiday shopping in
the country is relatively less active than in the cities,
which fact is ascribed in part to absence of the stim
ulus of seasonable weather and the poor condition
of roads.
As contrasted with the preceding thirtv days,
changes in wholesale &nd jobbing were largely
seasonal in character, but in some lines the ten
dency is to slow down, especially on future busi
ness. Keen competition is reported, and the policy
of retail merchants to purchase only for well de
fined needs remains unchanged. The number of
small orders is exceptionally heavy and stocks and
assortments on retail shelves are being well kept
up. In a number of important manufacturing lines
further curtailment of output was reported, which
was reflected in a retarded movement of raw ma
terials, especially notable in textiles, chemicals,
hides and some of the metals. Building activities
are well sustained throughout the district, Novem
ber permits issued in the five largest cities show
ing good gains both over the preceding month and
the corresponding period a year ago. The demand
for building materials was active, with further
progress in price stabilization reported.
Employment conditions underwent but little
change during the period under review, and are in
the main satisfactory. Some reduction of forces
in industrial plants was reported, notably in iron
and steel works and shoe factories, and the arrival
of winter weather has curtailed operations on road
and river work. Mechanics in the building trades
are well employed, especially in St. Louis, where
there are no indications of slackening. Common
labor is plentiful, with a small surplus in some lo
calities. Seasonal factors are partly responsible for
increased unemployment in automobile and related
industries, while taking of inventories has resulted
in lessened activities in shoe manufacturing plants.
Employment in the candy and confectionery in
dustry and in retail establishments showed gains.
The demand for domestics continues in excess of
the supply, but there is a surplus of clerical workers
in certain centers.
Some slowing down in the marketing of farm
products, as compared with the preceding thirty
days, was noted during the period under review.
This was partly attributable to seasonal consider
ations, but low prices and unsatisfactory market
ing conditions are causing farmers to hold stocks
to some extent. The movement of wheat and oats
to market during November was in considerably
smaller volume than a year ago, but corn showed
a slight gain.
Price fluctuations of leading agricultural prod
ucts of the district were rather broad. Wheat,
which declined during mid-November, reacted up
ward later in the period, the options closing l% c
to 2c higher on December 15 than on November
15, and cash wheat from l ^ c to 3c higher. Be
tween November 15 and December 15 middling
cotton at St. Louis ranged from 34c to 36 {%c per
pound, the latter price which was attained on
November 30, being a new high on the crop. Live
stock prices declined, hogs in the St. Louis market
selling at the lowest level since March 1912. Open
ing of the tobacco markets developed considerable
diversity of results, but with initial price averages
indicating slight declines as compared with last
year.
While railroads operating in this district con
tinued to exceed all previous records in the mat
ter of seasonal freight loadings, the trend for the
country as a whole during recent weeks has been
in the direction of a decline in traffic movement.
For the week ending December 1, according to the
American Railway Association, loading of reve
nue freight by roads in the United States
totaled 835,296 cars, a decrease of 154^391 cars un
der the preceding week and a loss of 5,116 cars
as compared with the corresponding period in
1922. This was the first time since early in the
year that a decrease under the corresponding week
in 1922 was recorded. The downward trend in
freight movement is due in large part to seasonal
factors, but the fact that such a large volume of
freight was forwarded early in the year is given
as the principal reason for the recession at this
time. The St. Louis Terminal Railway Associa
tion, which includes in its membership 26 roads
operating through this gateway, interchanged
207,973 loads in November, against 226,242 loads
in October, 220,169 loads in September and 205,056
loads in November, 1922. During the first nine
days of December 58,585 loads were interchanged,
against 66,020 loads during the first nine days of
October and 59,336 loads during the correspond
ing period of November, 1922. Passenger traffic
of roads reporting to this bank increased 4.5 per
cent during November over the same month last
year.
Extremely dull conditions, accompanied by
lower prices, continue to feature the fuel situation
in this district. Domestic demand is unusually
backward for this time of year, and yards are well
stocked. Additional mines have been closed in all
coal fields, and operations have been further cur
tailed at active pits. Despite this reduced pace of
production, considerable difficulty is experienced
in disposing of outputs. Uncertainty relative to
prices is causing steam users to postpone con
tracting for 1924 requirements, and liberal accumu
lations at mines and on tracks have banished all
apprehension on the part of consumers relative to
ability to secure coal when they need it. There
has been some contracting on the part of users
of metallurgical coke in the immediate past, but
the volume of such orders is under normal for
this season. By-product coke manufacturers re
port apathy in the demand from householders, and
surplus stocks on their yards are augmenting in
size. Production of bituminous coal for the coun
try as a whole for the first 289 working days of
this year, or to December 8, was 516,660,000 net
tons, against 376,932,000 for the corresponding
period in 1922, 393,165,000 in 1921 and 551,039,000
net tons in 1918.
Taken as a whole, collections through the dis
trict are barely normal for this period of the year.
Some slowing down in efficiency as contrasted with
the two months immediately preceding was re
ported, and in certain sections results are consid
erably more satisfactory than elsewhere. Current
bills of wholesalers in the large cities are being
paid fairh promptly, though several lines report
that their settlements in November were not as
large as for the same month in 1922. In the to
bacco districts, where marketing of the crop is
in progress, merchants report satisfactory pay
ments, and the same is true in the areas where rice
is the principal crop. Considerable diversity is
noted in reports of retailers, with those in the
cities making a relatively better showing than in
the rural communities. Answers to 354 question
naires addressed to representative interests in va
rious lines throughout the district show the fol
lowing results:
Excellent
Good
Fa.tr
Poor
0.9%
&L9%
8?5%
Oct. 1923_____
0.9
35.3
57.1
6.7
Nov. 1922____
6.4
50.0
40.6
3.0
Commercial failures in Eighth Federal Reserve
District during November, according to Dun's,
numbered 109, involving liabilities of $2,233,369,
against 84 defaults with liabilities of $1,308,833 in
October, and 120 failures for $2,060,085 in Novem
ber, 1922.
Per capita circulation of the United States on
December 1 was $44.01, which compares with $43.27
on November 1, and $41.80 on December 1, 1922.
MANUFACTURING AND WHOLESALE
Automobiles
For the country as a whole, production of
automobiles and trucks during November showed
a decrease as contrasted with October, but com
pared with November, 1922, a gain of 32.1 per cent
was r e c o r d e d . The output of passenger c a r s by
companies reporting direct or through the National
Automobile Chamber of Commerce during Novem
ber was 284,758 against 334,244 in October. Pro
duction of trucks in November totaled 27,374
against 29,638 in October. Sales of passenger cars
have been stimulated to some extent by the holi
day season, and the movement of accessories is re
flecting an intensive selling campaign. A c c o r d i n g
to reports of 230 dealers scattered through the dis
trict, November sales were approximately 12 per
cent larger than for the same month in 1922. The
used car situation is reported in better condition
than for more than eight months, the number in
dealers' hands having decreased materially during
November and December. No change for the better
has taken place in the tire industry. Buying by
jobbers is on a hand to mouth basis, and the move
ment to ultimate consumers is slow. Uncertainty
relative to prices is holding down contracting for
1924 needs to a minimum.
Boots and Shoes
Sales of the 11 reporting interests during N o
vember were 3.4 per cent under those of the same
month in 1922, and 21.3 per cent below the Oc
tober total this year. Since December 1 there has
has been considerable improvement in orders for
spring wear, several of the larger interests report
ing sales in excess of the corresponding period
last year. The Comment is made that the keenest
sort of competition exists, and retailers are pur
chasing with more than ordinary caution. Prices
for finished goods underwent no change, ,but fur
ther weakness developed in raw materials. Fac
tory operation decreased slightly during the period
under review, being at from 80 to 90 per cent of
capacity. A number of factories will be closed from
one to two weeks during inventory time.
Clothing
W ith retail movement of winter apparel re
tarded by mild weather, All-in business during De
cember has been negligible and disappointing.
There has been only fair demand for overcoats,
and heavy woolen goods have moved slowly. As
retailers are occupied with holiday trade, jobbers
are not doing much spot business, except on goods
for January sales. Advance orders for spring are
about 10 per cent below those of a year ago. N o
vember sales of 11 representative interests were
0.3 per cent under those of the same month a year
ago and 37.9 per cent under the October, 1923,
total, the latter partially seasonal. November sales
of reporting hatters were 4.1 per cent under those
of a year ago, with open weather bringing only
light demand for velours and other winter styles.
Orders booked for spring continue well in excess
of those of a year ago.
Drugs and Chemicals
Reports from leading interests in this classi
fication indicate extremely spotted conditions. Some
concerns report good gains, while others show
rather sharp declines as compared with a year ago.
The heaviest losses reported are in sales of heavy
chemicals to manufacturers, but in the aggregate
these losses are offset partially by gains in sales
of seasonal drugs and holiday sundries. During
the period under review the trend was toward more
stable prices on numerous important items. Actual
price changes were on a smaller scale, but advances
continue to outnumber declines, particularly on
crude drugs, spot supplies of which are light. Sales
of the 11 reporting interests in November were 2.1
per cent in excess of the same month in 1922, and
6.3 per cent under the preceding month this year.
Dry Goods
Further upward revisions throughout the list
of cotton goods during November brought the aver
age of that line about one cent per yard higher and
caused some curtailment of buying, both by whole
salers and retail trade. In spite of this advance, cot
ton goods manufacturers are in many instances sell
ing below replacement cost. Orders for holiday
lines have been numerous and often, but decidedly
small, and buying of mid-winter goods has been re
tarded by unusually mild weather. Women's readyto-wear has been taken in fair volume, but silks are
quiet with prices lower. Overproduction continues
in hosiery and there is keen competition among
manufacturers for business in this line. November
sales of 11 representative interests were 11.1 per
cent under those of the same month a year ago
and 13.6 per cent under the October, 1923, total.
Orders for future delivery on books of reporting
firms are barely two-thirds of the volume of future
commitments placed at this time last year. The
decrease is attributed largely to unsettled con
ditions in cotton goods lines.
Electrical Supplies
Continued activity in new construction and a
brisk demand for holiday goods, particularly radio
apparatus, were the principal factors causing an
increase of 8.5 per cent in November sales of the
12 reporting interests over those of the correspond
ing month in 1922, and a gain of 1.0 per cent over
the preceding month this year. The movement of
lighting fixtures, shades and general household ap
pliances is reported excellent. Some recession in
the demand for pole and line hardware is noted, but
sales of automobile equipment are holding up well.
The high cost of cotton yarns has advanced the
price of nonmetallic flexible conduit and all insu
lated wires and cables.
Fire-Clay Products
Although some seasonal slowing down has
been experienced during the past thirty days, bus
iness continues ion a healthy basis, with small
orders predominating. Nine-inch straights have
moved in good volume, and record cement produc
tion has been reflected in a brisk demand for kiln
liners. Adverse conditions in the oil industry have
resulted in smaller tonnages being taken there.
Stocks among consumers are universally low. N o
vember sales of 5 representative interests were
6.7 per cent in excess of the same month a year
ago, but 19.2 per cent under the October, 1923
total. Many orders for first quarter requirements
were placed during December, sales for the first
three weeks of the month running ahead of the
November rate. Inquiries continue numerous.
Flour
Production of the 11 leading mills of the dis
trict during November was 404,824 barrels, which
compares with 446,009 barrels in October, 411,018
barrels in September, and 385,578 barrels in N o
vember, 1922. Quietness featured business through
out the period under review, especially in the case
of new orders, which were confined largely to reg
ular customers of the mills. Buying in the South
was relatively better than in other sections,, with
the call chie&y for soft flours. Some current bus
iness was done with the W est Indies in clears and
straights, but bids from Europe were scarce and
for the most part too low to result in business.
Mill operation was at from 60 to 85 per cent of
capacity.
Furniture
Anticipation of lower prices on the part of
dealers is making for a hesitating market in this
classification. Another retarding factor is the
desire of retailers and jobbers to bring stocks to
as low a point as possible against taking of in
ventory. Manufacturers declare that concessions
under present price levels are improbable in view
of raw materials and labor costs. Glass, hardware
and paints and varnishes are firm, while advances
have taken place in some grades of lumber. The
general feeling is optimistic for trade during next
year, and extensive preparations are being made
by manufacturers for the January market. Sales
of the 24 reporting interests during November were
18.2 per cent under those of the corresponding
period last year, and 16.0 per cent under the Octo
ber, 1923, total.
Groceries
Comments of reporting firms continue to ex
hibit considerable irregularity. In sections where
the cotton crop has been particularly short, in the
coal mining regions and in sections where tobacco
is being held there is adverse comment, while in
most of the larger centers buying is holding up
well. Sugar stocks in jobbers' hands are low, de
spite shading of price. Good coHees continue firm.
Canned goods are in normal demand. Retailers'
total stocks are normal or below. November sales
of 20 representative interests were 3.4 per cent in
excess of the same month a year ago, but 7.0 per
cent under the October, 1923, total, the latter par
tially seasonal. Candy manufacturers report a good
demand, sales of holiday goods being 9.6 per cent
in excess of last year. Interest centers largely in
medium priced varieties. W ith Christmas trade
disposed of, manufacturers' and jobbers' stocks had,
by late December, dwindled to a very low point.
Retail candy stocks are only normal.
Hardware
November sales of the 12 reporting interests
were 9.5 per cent larger than for the same month
in 1922, but showed a seasonal decrease of 3.8 per
cent under October this year. Uncertainty relative
to future prices is having a tendency to hold down
commitments to well defined requirements. The
movement of goods during early December was
in satisfactory volume, with indications pointing
to heavier total sales than a year ago. The demand
for building hardware continues active, and winter
goods are being well taken.
Iron and Steel Products
Activities at leading mills, foundries and ma
chine shops receded slightly during the period un
der review. Placing of orders by consumers is
under some restraint due to uncertainty relative
to prices and a general disposition to hold down
stocks to as low a point as possible against, taking
of inventory. Additional open hearth furnaces have
been extinguished, and several of the larger com
panies are planning to close down their works
temporarily for repairs and inventory. In finished
and semi-Rnished materials only minor price
changes were recorded, but users of steel have been
requesting concessions, which on some classes of
products have been granted. While new business
has been slow in arriving, old bookings are enab
ling mills and foundries to run at from 65 to 80
per cent of capacity, and some specialty manufac
turers, notably castings for railroad cars and heat
ing apparatus, are working on full schedule. The
heavy buying movement of pig iron, which con
tinued through November, has been succeeded by
a period of quietness, but the advance in prices
incident to the heavy purchasing has held Rrm.
No. 2 Southern iron, 1.75 to 2.25 per cent silicon,
is quoted at $21, furnace, while Northern iron of
the same grade is held at $23. A sharp upturn in
scrap iron and steel prices has taken place, ad
vances of from $1 to $3 being noted on virtually
all items in quoted lists. Buying by the railroads
continues in good volume, and the automotive in
dustry is accounting for large tonnages. Struc
tural steel fabricators report steady demand, with
the number of speciRcations for smaller jobs being
more numerous than usual at this season. W are
house interests report quietness in the demand for
their goods, and stocks larger than in a number
of months. Plants specializing in gray castings
report no change in the status of their business
as compared with the preceding thirty days. N o
vember sales of stove manufacturers, 7 interests
reporting, were 10.8 per cent under the same month
in 1922, and 26.0 per cent under the preceding
month this year; wire products manufacturers, 5
reporting, showed a decrease of 10.2 per cent under
November, 1922, and a loss of 16.0 per cent as com
pared with October this year; railway supplies,
5 reporting, gained 10.3 per cent over November,
1922, but decreased 37.7 per cent under October
this year; farm implement makers, 6 reporting, de
creased 8.0 per cent under November, 1922, and
4.2 per cent under October this year; manufac
turers of boilers, stacks, elevators and other mis
cellaneous products, 8 interests reporting, gained
19.3 per cent over November, 1922, but decreased
1.8 per cent under October this year.
Lumber
An early recession in the fall buying movement
of soft woods has been followed by an unusually
early opening of winter buying of this description
of lumber. Consequent on sustained large retail
distribution and improved prospects for building
and railroad consumption next year, stock inquiries
from line yards and other sources began to appear
in volume at the outset of December. Carload
buying started to increase at the same time, not
withstanding the nearness of the holidays. The
mills are now asking varying advances, ranging
from $1 per thousand feet up for Southern pine
and Western fir yard stock, with special reference
to lower grades. Shed stock has been only senti
mentally affected, no actual advances having been
established, though the feeling is Rrm. The hard
wood situation continues hopeful, though the holi
day season and heavy production through the fall
weigh upon the demand. Sap gum has somewhat
receded in price. Red cypress has been selling
fairly well to the yard trade, but the yellow variety
is quiet and much depressed in all thicknesses in
the shop grade. Receipts of lumber in St. Louis
for the first eleven months of 1923 were 218,463
cars, an increase of 57,807 cars over the corres
ponding period in 1922.
Industrial Power Consumption
While November brought some decline, partly
seasonal, in the consumption of electricity for in
dustrial purposes, it is significant that not one of
the reporting cities registers a decrease over the
same month a year ago. Curtailment of refrigera
tion operations is largely responsible for the de
creases shown, although the automotive industry
and shoe manufacturers took smaller loads than
during October, 1923. Detailed figures follow :
Nov.
Nov.1923
Nov.1923
Nov.
Oct.
No. of
1922
comp, to
1923
1923
Custom
*K .W .H . *K .W .H . Oct. 1923 *K.W .H . Nov.1922
ers
909
1,054
— 6.3%
+ 8.7%
988
Evansville........ 40
726
+ 7.2
853
— 8.8
778
11
Little Rock..
3,665
+ 7.4
4,283
— 8.1
3,936
..... 67
1,221
+21.0
1,146
+28.9
1,477
. 31
+22.1
12,280
— 2.3
15,348
15,000
70
+ 18.0
— 2.2
18,801
22,684
Totals .... 219
22,179
*In thousands (000 omitted)
The following figures, compiled by U. S. Depart
ment of the Interior, give kilowatt production for
both lighting and industrial purposes for the entire
country.
Totals
By Fuels
By Water Power
1923
August...................... 1,570,160,000............ 3,099,870,000.......... 4,670,0: 0,000
September................ 1,464,462,000............ 3,073,339,000.......... 4,537,801,000
0(Xober.................... 1,491,344,000............. 3,479,719,000........ *4,971,063,000
*Largest on record.
R E T A IL .
Although holiday shoppers have apparently
been more numerous this year than ever before,
the public is buying in moderation. Mild weather
throughout December contributed toward a slacking
of trade in staple goods. Demand for overcoats and
gloves has been slow and sales of furs lagging, al
though a brisk demand is noticeable for women's
short fur coats. Thirty-eight and one-tenth per cent
of reporting retail stores show losses for November
as compared with the same month a year ago against
4.5 per cent in October and 13.4 per cent in Sep
tember. On the other hand, business of 5 and 10
cent stores and of chain grocery stores is surpass
ing all previous records. Last minute shopping
has been in good volume and most reporting stores
expect December sales to show small increases
over those of a year ago. November reports of 21
department stores, shown in the table following,
indicate some slackening in the demand noted in
immediately preceding months. The fact that
stocks on hand have increased 10.7 per cent while
sales show only 2.6 per cent increase over the same
period a year ago is taken to indicate a decline from
expected levels of buying rather than speculation in
merchandise. Detailed department store Rgures
follow :
Evansville, Ind........
Little Rock, Ark...
Louisville, K y.......
Memphis, Tenn....
Quincy, 111..............
Net Sales
Nov. 1923
comp, to
Nov. 1922
+ 8.5%
+ 7.7
+12.2
— 3.6
— 1.0
Springfield, M o.....
Eighth District.......
— 3.5
+ 2.6
St. Louis* M o......
+ 0.7
Stocks on hand
End Nov. 1923,
comp, to end
Nov. 1922
+ 8 .1 %
+23.6
—
1.6
+19.5
+12.4
+ 8.7
+18.0
+10.7
Outstanding
Orders
End Nov. 1923,
chases f or ^922
L8%
2.7
3.6
8.2
6.0
5.6
A G R IC U LTU R E
The chief agricultural development during the
period under review was the inauguration of sales
of the 1923 tobacco crop. Virtually all the loose
leaf markets in the burley, aircured, Green river,
stemming and dark Ared districts were opened,
and initial receipts were heavy. Quality of the
crop, as indicated by leaf so far delivered, is ordi
nary, of red to dingy color, and bearing consider
able trace of houseburn. Prices for good to medium
tobacco are not as high as in 1922, whereas the
common grades selling under $20 per 100 pounds
are about as high as last year. Daily average prices
in some markets are below a year ago, but the
decline is due to poorer quality of o3erings this
season. In the stemming district several sales were
made as high as $43 per 100 pounds, with the aver
age around $15.50, as compared with $17.50 a year
ago. In certain portions of the dark tobacco dis
trict offerings consist of common, light-bodied,
light-colored, lightly 6red leaf, in doubtful condi
tion. It is believed that with larger receipts and
offerings quality generally will show improve
ment. However, there is doubtless a considerable
quantity of common tobacco in the current crop.
Cooperative marketing associations are conducting
sales, and are making advances to their members.
Husking and housing of corn has made good
progress, and some quickening in the movement
to market is noted. Returns from a number of
sections indicate that yields are below expecta
tions. Excessive precipitation during the fall re
sulted in some moulding in the shock, and an un
usually large amount of soft and chaffy corn, and
grain of high moisture content is reported. In
Illinois, Indiana and Missouri a large amount of
corn is being cribbed for feeding on farms.
Weather and soil conditions have been gen
erally auspicious for germination, and fall-planted
crops are entering the cold weather in excellent
condition. Winter wheat has a good stand and color
and but few complaints of fall dryness or Hessian
Ay have been heard. Prospects are for a smaller
acreage of winter wheat, due to the decision of
farmers to plant less this year than last, and to
unfavorable weather which prevented producers
from getting in all the area intended.
Pastures are in better shape than usual at this
time of year, due to abundant rains and relatively
high temperatures. Aside from more than ordinary
prevalence of hog cholera in scattered sections, the
condition of all classes of live stock is reported
good. Late farm work has made favorable prog
ress generally, but fall plowing was seriously ham
pered in some areas by too much rain. The supply
of farm labor continues adequate.
Rice in Arkansas is approximately 85 per cent
threshed, with conditions extremely unfavorable for
this operation during the period under review.
Yields of late-maturing varieties were considerably
lessened by frost in late October. Heavy deliveries
of rough rice to mills have resulted in decline in
prices, though the cleaned rice market continues
strong under a broad and active demand.
Commodity Prices
Range of prices on typical products in the St. Louis market
between November 15 and December 15, 1923, with closing
quotations on the latter date, and on December 15, 1922:
High
Wheat
December..........
May...................
July..... ..............
No. 2 red w
inter...
No. 2 hard..........
Com
D
ecem
ber...........
No. 2 white.........
Oats
December...........
No. 2 w
hite.........
Flour
Soft patent..........
Spring patent......
M
iddling cotton......
Hogs on hoof.........
Low
$1.08%
1.13%
1.08
1.18
1.10
$1.03%
1.08%
1.03%
1.10
1.04
$1.06
1.10%
1.05%
$1.13 @ 114%
1.07
$1.22
1.21%
1.11%
1.40
1.24
.76%
.76%
.77%
.91
.88
.72%
.72%
.73
.72
.75
73%
.73%
.74%
.74
.76
.75
.73%
.73%
.76
.77
.44%
.48%
.47%
.43
.46
.44%
.43%
.47
.45
.46%
.48
.47%
bbl 6.25
6.10
lb.
.36%
cwt. 8.40
5 25
5.60
.34
5.00
Close Dec. 15,
5.25 @
5.75 @
5.75 @
6.25
6.00
.34%
8 40
Close Dec. 15,1922
$6.00 @
7.10 @
7.00
6.75
.25%
8.35
Commodity Movement
Receipts and shipments of important commodities at St. Louis
during November, 1923, and 1922, and October, 1923, as re
ported by the Merchants' Exchange, were as follows:
Beef, lbs...........
Corn, bu..........
Flour, bbls.
Hides, lbs........
Lard, lbs..........
Lead, pigs........
Lumber, cars...
Oats, bu...........
Pork, lbs..........
Wheat, bu.......
Zinc, slabs.......
* In thousands
^Receipts
N o v .'23 O ct.'23
589
3,763
2,134
1,998
476
524
8,221
9,967
6,795
7,291
155
119
19
22
2,646
3,580
22,907
25,692
2,259
3,141
171
196
(000 omitted).
*Shipments
Nov. *22 Nov. '23 Oct. '23 Nov. '22
199
25,324
32,523
21,367
2,189
842
1,110
1,520
393
558
630
638
6,250
10,304
12,167
9,129
4,674
11,564
9,735
8,805
265
215
176
192
13
14
15
10
2,988
1,908
2,746
2,408
17,779
31,342
35,140
28,207
4,278
1,819
2,455
3,675
226
154
184
217
Live Stock Movement
Receipts and shipments of live stock at St. Louis during
November, 1923 and 1922, and October, 1923, as reported by
the National Stock Yards, were as follows:
Nov.
1923
Cattle and Calves
125
w **
^
i
43*
Horses and Mules
8
Sheep
34
*In thousands (000 omitted)
*Receipts_______
Oct.
Nov.
1923
MM
197
Is ? *
480
362
13
13
53
39
Nov.
1923
79
281
11
16
^Shipments_____
Oct.
Nov.
1923
MM
110
315
234
12
12
25
14
B U IL D IN G
In building permits issued in the five leading
cities of the district during November, residential
construction again predominated. In St. Louis, for
example, $2,938,600 of the total valuation—$4,199,000— for permitted construction represented
dwellings, bungalows, cottages and apartments.
Weather has been generally favorable for outside
work, and excellent progress was made on build
ings in course of construction. A gain of 74.6 per
cent was made in November permits over those of
October and a gain of 29.5 per cent over Novem
ber, 1922. A considerable part of the increase,
however, is accounted for by the influx of appli
cations to build occasioned by abrogation of the
St. Louis zoning law. Building labor is reported
generally adequate, the only shortage being in cer
tain skilled crafts in {St. Louip. Production of
P o r t la n d cement f o r the country as a whole dur
ing November decreased slightly, the total output
being 12,603,000 barrels against 13,350,000 barrels
in October, and 11,349,000 barrels during Novem
ber, 1922.
eral large apartment buildings in heretofore re
stricted districts have caused some revision of opin
ion and a belief that a slight shortage in that
category still exists. Present estimates also indi
cate a shortage of 15 per cent of the present num
ber of single family dwellings.
Fig. 2 give a comparison, for the entire United
States, of the cost of all commodities with rents
and factors contributing to the cost of rent.
Figure 1
Movement of Resi
dential R ents in
St. Louis.
Figure 2
Comparative Increase in Cost of All
Commodities, Rents, Building Ma
terials, and Wages in Building
Trades.
*
200
Building figures for November follow:
Cost
1922
1923
Evansville
106
56
Little Rock
74
89
Louisville...... . 268
198
Memphis....... 295
288
. 849
635
N o v .to ta ls...1,592
Oct. totals ....1,906
Sept. totals .. .1,739
*In thousands of dollars (000
1922
1923
$197
$108
196
255
582
1,256
1,791
1,159
_____
2,602
4,199
6^65^ $5,380
5,893
3,988
8,012
4,919
omitted)
______ Repairs, etc._____
Permits
*Cost
1923
74
88
40
547
834
1,133
1,029
1922 1923 1922
45
$29
$15
145
27
90
85
102
48
56
17
31
451 _____
372
249
782 $547 §433
979
601
461
912
534
465
Rents in St. Louis
Figures compiled by this bank indicate that
rents in St. Louis, which have undergone an al
most uninterrupted rise since 1914, are approach
ing stabilization and that this tendency is more
pronounced in residential than in business prop
erty. Reports from local real estate and rental
agencies, depicted in Fig. 1, indicate that a smaller
percentage of those reporting show increases in
residential rents during November, 1923, than for
the same month a year ago. There were, however,
during November, 1923, fewer decreases than for
November, 1922, the predominate tendency in resi
dential rents being toward a fixation of price at
present levels. Rent movement in local business
property continues slightly upward, and it is esti
mated that a shortage of 11 per cent of present
floor space exists in business buildings. Just prior
to November 20, when the Supreme Court of Mis
souri declared the St. Louis zoning ordinance in
valid, real estate men had expressed the opinion
that local apartment supply was adequate. Since
then, however, applications for the erection of sev
NV N
O . OV. JUNE
!923 !922 !923
ALt-6>
C M O IT S
O M D IE
W
AGES
M T R L B !L !N T A E
A E IA S U D 6 R D S
(1) From Bureau of Labor Statistics (1913-100)
(2) From National Industrial Conference Board (1914-100)
(3) From F. R. Bank of New York (1914-100)
FJN AN CIAL
Aside from a slight quickening in the demand
for credits, more pronounced during the second
week of December, banking and financial condi
tions underwent no marked change during the
period under review. Liquidation of bank loans
has been on a large scale and quite general, though
some backward spots are noted, chiefly in sections
of the South where the cotton crop was a failure.
Opening of the tobacco markets has resulted in
the payment of some loans based on that com
modity, and in the rice areas loans are being taken
up. The increased movement of corn has aug
mented the demand for credits from that source,
and in some sections borrowing for financing live
stock, particularly cattle, is more active. The de
mand from wheat and milling interests, however,
is quieter than thirty days ago. Banks, particularly
in the large cities, report increased commitments
by mercantile customers. Deposits are tending up
ward, the total on December 12 for reporting mem
ber banks of this institution being at the highest
point since June 13 last. Loans of reporting mem
ber banks increased rather sharply, but their dis-
counts with the Federal reserve bank showed a
heavy decline. Total stocks, bonds and other se
curities held by reporting member banks decreased
to a new low for the year during the week ending
November 21. A moderate upturn occurred between
that date and December 19. Between November 15
and December 15 there was a decrease of $17,573,338 in the amount of paper discounted by this bank
for its members and an increase of $1,142,015 in
Federal reserve notes in circulation, the latter
change being due largely to the demand for cur
rency for the holiday season.
Commercial Paper
W ith an active demand and fairly liberal sup
plies of commercial paper, business of reporting
firms was active during the period under review.
Some slowing down in purchasing developed about
December 12, which was attributed to withdrawal
of the large city banks from the market because
of increasing demands from regular borrowing
customers. Rates were a shade easier, ranging
from 4% to 5% per cent. Sales to country banks
in the South continue heavy, though the lower
rate is serving to contract the movement through
that outlet. Business of reporting Rrms during N o
vember was 27.5 per cent larger than for the same
month in 1922, and 25.0 per cent under October
this year, the latter change being seasonal.
Debits to Individual Accounts
*For Four Weeks Ending
Dec. 1923
Nov. 14,
Dec. 13, com to
p,
Dec. 12,
1922 Nov. 1923
1923
1923
E. St. Louis and
Natl. Stock Yards, 1 !!.....
1
E! Dorado, Ark............
Evansville, Ind............
Fort Sm
ith, Ark...........
Greenville, Miss...........
Helena, Ark.................
Little Rock, Ark..........
Louisville, Ky.............. ...
Memphis, Tenn............ ......
Owensboro, By............
Quincy, H
I...................
St. Louis Mo................ ......
$44,174
6,229
14,527
4,628
73,659
142,719
180,408
9,725
621,824
3.837
13,560
Springfield, Mo.............
Totals...... ......155.545
*In thousands (000 omitted)
tN ot including Sedalia
$44,755
6,884
28,558
14,489
3,915
6,363
65,567
140,914
154,880
5,022
9,734
642,794
14,203
$1,138078
$41,974
Dec.1923
com to
p,
Dec.1922
+ 5.2%
*28 943
12,846
4,745
6,197
58,552
135,886
162,919
6,275
10,009
549,165
- 13%
— 9.5
+ 5.1
+ 0.3
+18.2
+30.0
+12.3
+ 1.3
+16.5
+15.7
— 0.1
— 3.3
* + '3:7
+13.1
— 2.5
+33.5
+25.8
+ 5.0
+10.7
— 8.0
— 2.8
+13.2
13,187
$1,030,698
— 4.5
+ 1-5*
+ 2!8
+11.5
Condition of Banks
Changes in th? condition of banks in this district are re
flected in the following statement showing the principal re
sources and liabilities of reporting member banks in Evansville,
Little Rock, Louisville, Memphis and St. Louis (in thousands
of dollars):
Dec. 12,
1923
*35
Nov. 7,
1923
*35 '
Dec. 13,
1922
37
. $11,853
146,338
. 312,138
$470,329
$12,756
142,925
316,367
$472,048
$18,760
138,931
295,848
$453,539
15,193
21,861
6,956
17,103
5,591
86,000
$152,704
. 41,377
8,980
350,185
189,760
1,444
15,1921
23,433 ^
52,937
6,808)
17,862
15,431
3,635
5,325
85,212
87,922
$153,832 $159,925
37,054
42,267
8,304
9,008
356,617
330,855
176,419
192,297
11,541
4,220
Loans and discounts (inc!. rediscounts)..
Investments
Certificates of Indebtedness..
Bills payable and rediscounts with
Federal reserve bank
.
*Decreaae due to consolidation
7,536
28,295
14,134
35,648
7,618
8,940
Savings Deposits
No.
Dec. 5,1923
Nov. 7,1923
No. of
No. of
B^ks Accts.
IT 24,371 $ 8,974 ' 24,465 $ 8,962
Evansville
27,819
5
27,940
7,146
Little Rock
7,102
tl36,830
t24,434
148,573
Louisville
7
24,725
66,916
66,169
Mem
phis
5
17,882
17,736
257,073
73,426
St. Louis
12
256,817
73,216
Totals
513,130
$131,862
523,843
$131,741
*In thousands of dollars (000 omitted)
116,000 Xmas Savings Accounts m
atured Dec. 1,1923.
Dec. 6,1922
No. of *Amount
Accts.
Deposits
22,340
$ 8,590
26,093
6,528
141,871
21,496
15,314
58,539
68,661
244,042
492,885
(120,589
Federal Reserve Operations
During November the Federal Reserve Bank
of St. Louis discounted for 284 of its 627 member
banks, which compares with 287 member banks
accommodated in October. The discount rate of
this bank remains unchanged at 4% per cent.
Changes in the assets and liabilities of the
Federal Reserve Bank of St. Louis since a month
ago and last year are shown in the following com
parative statement (in thousands of dollars) :
RESOURCES
Dec. 13,
1922
$104,893
Dec. 12,
1923
Gold reserves....................... $ 93,649
Legal tender notes,
silver, etc..........................
8,357
Nov. 14,
1923
$ 74,995
9,775
11,048
Total cash reserves............$102,006
Discounts secured by Gov't.
obligations........................ 16,928
Discounts otherwise se
cured and unsecured..... 37,676
Bills bought in open
market...............................
72
U. S. Gov't, securities.........................
$ 84,770
$115,941
20,934
13,451
52,810
14,258
29
12,660
21,116
Total earning assets
$ 54,676
Uncollected items................ 38,370
Other resources....................
9,405
$ 73,773
44,358
8,741
$ 61,485
39,447
6,094
Total resources................ $204,457
$211,642
$222,967
LIABILITIES
Dec. 12,
1923
Capital paid in.....................$ 5,012
Surplus..................................
9,665
Deposits................................
72,981
F.R. notes in circulation.... 77,676
F.R. bank notes in
circulation..........................................
Deferred availability items 37,632
Other liabilities....................
1,491
Total liabilities.....................$204,457
Combined reserve r atio
67.7%
Nov. 14,
1923
5,003
9,665
70,655
76,843
Dec 13,
1922
$ 4,813
9,388
70,725
94,501
47,992
1,484
1,457
40,922
1,161
$211,642
57.5%
$222,967
70.2%
ANNOUNCEMENT
The Federal Reserve Bank of St. Louis has just
issued a booklet entitled "Advantages of Membership
in the Federal Reserve System."
The booklet explains in a concise and compre
hensive way the purposes of the Federal Reserve Act,
as well as the privileges and advantages that banks
enjoy as members of the System. It also gives the
requirements of membership.
Copies of the booklet may be obtained on request.
BUSINESS CONDITIONS IN THE UNITED STATES
(Compiled by Federa! Reserve Board, December 26, 1923)
1919
!920
192!
1922
1923
Production— In basic industries production decreased about 2 per cent in November. The decline was due chiefly to reduced
output of iron and steel and smaller sugar meltings. The Federal Reserve Board's new index of factory employment, which is
shown by the accompanying chart, also declined, due to less activity at iron and steel plants and large seasonal reductions at clothinjg
establishments. The volume of employment is now 2 per cent smaller than in the spring but 3 per cent larger than a year ago.
Contract awards for new buildings were smaller in November than in October in all reporting districts except New York, but were 20
per cent larger than a year ago. Final estimates by the Department of Agriculture show larger yields of corn, oats, tobacco, and
cotton than in 1922 and smaller yields of wheat, hay, and potatoes. The total value of agricultural production at December 1 prices
was 12 per cent larger than in 1922. Each of the ten principal crops except wheat showed an increase in value.
Trade— Railroad freight shipments in November showed about the usual seasonal decline from October, but were in heavier
volume as compared with previous years. Wholesale trade was 13 per cent less in November than in October, which is more than the
usual decrease at this season, but sales continued to be slightly larger than a year ago. Sales of hardware, drugs, and meat were larger
than in November, 1922, while sales of shoes were smaller. Retail business was smaller than in October in most lines. Sales of mail
order houses declined more than sales of department stores, but were 11 per cent larger than a year ago.
Prices— The Bureau of Labor Statistics index of wholesale prices declined in November to a point 4 per cent lower than last
spring and about 3 per cent lower than a year ago. The chief reductions occurred in prices of animal products, fuel and house
furnishings. Prices of clothing and crops, on the other hand, increased and the latter group averaged higher than in any month since
1920. During the first half of December prices of sheep, beef, sugar, cotton, silk and rubber declined while quotations on crude oil,
wheat and wool were slightly higher.
Bank Credit— The total volume of credit extended by member banks in leading cities showed but little change between the
middle of November and the middle of December. A seasonal reduction in commercial and agricultural loans in most districts was
accompanied by increased loans on securities with the result that total loans remained practically constant.
During the same period
borrowings at the Federal reserve banks were also practically unchanged. Holdings of acceptances increased somewhat partly in
connection with the financing of cotton exports. The increased demand for currency for holiday trade was reflected in both a moderate
expansion in Federal reserve note circulation and a reduction in gold certificates held by the reserve banks. Rates on com
mercial paper sold in the open market continued to show an easier tendency as indicated by increased sales at 4^ per cent particularly
in interior districts The December issues of one year 4 } per cent and six months 4 per cent treasury certificates, compared with 4 i per
cent on a six months issue solo in September were largely oversubscribed.
The New Index of Employment
This month we present for the first time a chart showing the index of employment in manufacturing industries, compiled by the
Federal Reserve Board's Division of Research and Statistics. Wide industrial and geographical representation in the composition of
the index is obtained by using data collected by a number of Federal and State agencies covering 33 separate industries, which are
grouped into 10 general classes, as follows: Metals; textiles; lumber; vehicles; paper and printing; food; leather; stone; clay and glass; to
bacco; and chemicals.
The final index and each of the 10 group indexes were obtained by combining the 33 individual industry series, weighing them in
accordance with their relative importance as determined by the number employed according to the census of manufactures of 1919 and 1921.
The index is expressed in terms of percentages with the monthly average for 1919 as the base, i. e., 100 per cent. It is so constructed that
its movements, although they do not measure the total volume of employment, reflect increases or decreases in this volume.
No correction was made for normal seasonal variations, because although these fluctuations are noticeable in individual industries,
they vary as to time and degree and in the final index largely offset each other. A full description of the data and methods used in com
piling this index and of the results obtained is published in the December issue of the Federal Reserve Bulletin.
Cost of Living
Cost of living in the United States on November 15 had increased seven-tenths of one per cent over the October 15 level, ac
cording to the National Industrial Conference Board. The increase since July was 2.1 per cent. In the month ending November 15
there were increases in the cost of food and sundries. Rents advanced, but the cost of clothing, coal, gas and electricity were lower.
Between July, 1920, when the peak of the rise in the cost of living since 1914 was reached, and November, 1923, the cost of living de
creased 19.2 per cent. The increase since July, 1914, was 65.3 per cent.
The purchasing value of the dollar based on cost of living in November, 1923 was 60.5 cents as contrasted with one dollar in
July, 1914.
@FedFRASER