The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
BUSINESS CONDITIONS
Monthly Review of Agriculture, Industry, Trade and Finance
Released for Publication on Morning of December 31, 1938
FEDERAL
RESERVE
BANK
Little RockBranchof Federal Reserve Bankof St. Louis
OF
ST.
LOUIS
SU M M AR Y OF EIGH TH DISTRICT
Agriculture:
Estimated yield of 7 crops................. .
Live Stock:
Receipts at National Stock Yards__
Shipments from aforesaid Yards........
Production and Distribution:
Sales by mfrs. and wholesalers..........
Department store sales......................
Car loadings........................................
Building and Construction:
Dec. 1, 1938, comp, with
Yield 1937 Av. 1923-37
9.0% +
1.2%
Nov., 1938, comp, with
Oct., 1938i Nov., 1937
1.4% +
— 7.2 +
4.4%
2.9
— 7.3 + 9.7
.+ 0.1 + 4.2
— 9.0 — 5.1
Bldg. permits, incl. repairs j Cost^6**-}Value construc. contracts awarded. .. .+
Miscellaneous:
—
Commercial failures { Liabilities
—
Consumption of electricity.................. —
Debits to individual accounts............ —
+ 2.2
13 8 +111.3
14.2 + 79.4
31.0 + 11.5
68.3 — 67.6
4.1 + 2.4
9.0 — 8.0
Dec. 14, ’38t comp, with
Member Banks (24):
Nov. 16, ’38 Dec. 15, ’37
Gross deposits...................................... — 0.8% + 10.4%
Loans.................................................... + 0.9 — 1.5
Investments.......................................... + 1.5 + 14.6
HE marked upward trends in Eighth District
commerce and industry, which have been un
der way since last summer, were extended
further during November and the first half of De
cember. In several notable instances production
and sales volumes for the first time this year have
equaled or exceeded those at the same time in
1937, when, it will be recalled, general business was
markedly on the downgrade.
T
Taken as a whole, production made a relatively
more favorable showing than distribution. This
was attributable in large measure to the unusually
mild weather, which had the effect of greatly cur
tailing the movement of all descriptions of seasonal
merchandise through both retail and wholesale
channels. Notwithstanding this handicap, volume
of retail trade in November was a fraction of one
per cent above that of the preceding month, and
both retail and wholesale volumes were in excess of
those in November, 1937. Stimulated by the arrival
of cold weather and the holiday trade, there has
been a noticeable pickup since the first of December.
Manufacturing activities during November and
early December maintained the high levels reached
in the similar period immediately preceding. A
further increase in output of mills, foundries and
other ferrous metal working plants reflected the
placement of new business and completing of or
ders previously booked. The rate of steel ingot
production at district mills advanced to 51.5 per
cent of capacity in late November, a new high for
the year, and this rate was maintained through the
third week of December.
Page 2
Production in the textile industry showed little
change from October to November, but activities at
cotton mills have been stepped up slightly since
December 1. In the lumber industry orders and
shipments continue to run well ahead of current
production, with consequent further noticeable re
duction in inventories. Reflecting expansion in
manufacturing activities, returns from public util
ities companies in the principal centers showed a
fair increase in loads taken by industrial cus
tomers in November as compared with the same
month last year. Output of bituminous coal at
district mines increased moderately from October
to November, but continued below that of the same
period a year ago. October output of petroleum
continued the steady gains of recent months, and
total production for the year to November 1 was
90 per cent greater than for the like interval in 1937.
Taken as a whole, the employment situation un
derwent noticeable betterment during November,
with improvement most marked in industrial lines
and clerical help employed in connection with the
Christmas holiday trade.
Gauged by sales of department stores in the prin
cipal cities, the volume of retail trade in November
was slightly more than in October and 4.2 per cent
greater than in November, 1937; for the eleven
months this year, cumulative total was 6.0 per cent
smaller than for the comparable period in 1937.
Combined sales of all reporting wholesaling and
jobbing firms in November fell 7.3 per cent below
October, but were 9.7 per cent greater than for
November last year; cumulative total for the eleven
months was smaller by 10.2 per cent than in the
same interval in 1937.
The value of permits issued for new construction
in the principal cities in November was about onethird greater than in October and 146 per cent
more than in November last year; for the first
eleven months cumulative total was 7.7 per cent
less than for the same time last year. The dollar
amount of construction contracts let in the Eighth
District in November was 14.2 per cent and 79.4
per cent greater, respectively, than a month and a
year earlier, and for the first eleven months the cu
mulative total was 10.7 per cent in excess of that
for the like period in 1937.
Commercial failures in the Eighth Federal Re
serve District in November, according to Dun and
Bradstreet, numbered 29, involving liabilities of
$151,000, which compares with 42 failures with
$477,000 liabilities in October, and 26 defaults for
a total of $466,000 in November, 1937.
DETAILED SURVEY OF DISTRICT
M A N U F A C T U R IN G A N D
Lines of
Commodities
Boots and Shoes..........
Drugs and Chemicals..
Dry Goods...................
Electrical Supplies.......
Furniture......................
Groceries......................
Hardware.....................
All above lines......
W H O L E S A L IN G
Net Sales
11 months 1938
November, 1938
comp, with same
compared with
period 1937
Oct., ’38 Nov., ’37
+ 1-8%
-1 1 .2 % + 9.5%
— 6.9
— 1.3
— 5.2
—10.1
+19.3
—10.9
—33.3
—14.0
— 0.7
—20.3
+19.6
— 0.3
—11.7
—
2.3
— 7.6
—14.1
— 3.7
+14.9
— 7.3
+ 9.7
—10.2
Stocks
Nov. 30, 1938
comp, with
Nov. 30, 1937
—30.1%
— 0.2
—26.8
—28.5
—34.1
— 3.7
— 4.5
—16.4
Influence of the usual seasonal considerations
was mainly responsible for the decline in combined
sales of all wholesaling and jobbing groups from
October to November, shown in the above table. In
the case of a number of lines, including dry goods,
drugs and chemicals and groceries, the unusually
mild fall and early winter tended to hold down pur
chasing of all descriptions of seasonal merchandise,
both for immediate and future delivery. While
cumulative sales total for the first 11 months was
10.2 per cent below that for the comparable period
in 1937, the divergence was considerably narrowed
as contrasted with the first six months which
showed a cumulative loss of 16.6 per cent under
the first half of the preceding year.
The decline in inventories, which has been in
effect since the first of the year, was extended fur
ther in November. All lines investigated reported
smaller stocks on hand as of December 1 than a
year earlier, the declines ranging from 0.2 per cent
in the case of drugs and chemicals, to 34.1 per cent
in furniture. Production of boots and shoes showed
about the expected decline from the August peak.
Prices of shoes in November were unchanged from
levels obtaining since last summer. In the hard
ware, electrical supply and furniture classifications,
ordering of holiday goods was smaller in November
than a year and two years earlier. A considerable
volume of reordering in these lines during the first
half of December was reported.
Automobiles— Combined passenger car, truck
and taxicab production in the United States in No
vember totaled 372,358 as against 209,522 in O c
tober and 360,063 in November, 1937.
Iron and Steel Products— Virtually all sections of
the iron and steel industry in this district under
went further improvement during November, and
in most instances activities appreciably bettered
those of the same month a year ago. Since the first
week of December there has been some tapering off
in both production and distribution, but the extent
of the decline was not as great as is ordinarily the
case. Expansion in production of automobiles was
reflected in liberal releases of steel mill and foundry
products, and consumption by other steel users
was well sustained.
At mid-December, steel ingot production at dis
trict mills was at 51.5 per cent of capacity, the
highest of the year, and comparing with 20.5 per
cent at the same time in 1937. Shipments and the
melt of pig iron in November continued upward.
Operations at structural steel fabricating yards
were unchanged at 35 per cent of capacity, but de
clined 5 points to 30 per cent in the second week of
December. Schedules at jobbing foundries in No
vember averaged four to five days per week. Dis
tribution of iron and steel through warehouse and
jobbing concerns increased about 8 per cent in No
vember as compared with the preceding month.
Aside from a slight decline in scrap iron and steel,
prices of raw and finished materials remained un
changed.
For the entire country, production of pig iron in
November, according to the magazine “ Steel” ,
totaled 2,286,530 tons, the highest since October,
1937, and comparing with 2,067,499 tons in Octo
ber and 2,007,031 tons in November, 1937. Steel
ingot production in the United States in November
was 3,572,220 tons, against 3,117,934 tons in Octo
ber and 2,154,365 tons in November, 1937.
TR AN SPO RTATIO N
Freight traffic of railroads operating in this dis
trict during November, according to officials of the
reporting lines, showed less than average decline.
Volume during the last week of November and the
first two weeks of December exceeded that of the
similar period a year ago, owing chiefly to heav
ier loadings of miscellaneous freight. The St. Louis
Terminal Railway Association, which handles in
terchanges for 28 connecting lines, interchanged
76,188 loads in November, against 83,681 loads in
October and 80,311 loads in November, 1937. Dur
ing the first nine days of December the interchange
amounted to 23,159 loads, which compares with 23,216 loads during the corresponding period in No
vember and 23,484 loads in the first nine days of
December, 1937. Passenger traffic of the reporting
lines in November decreased 9 per cent in number
of passengers carried and 7 per cent in revenue as
compared with the same month last year.
For the entire country, loadings of revenue freight
for the 48 weeks this year, or to December 3, totaled
28,168,533 cars, against 35,538,188 cars for the cor
responding period in 1937 and 33,489,127 cars in
1936. Estimated tonnage of the Federal Barge
Line between St. Louis and New Orleans in NoPage 3
vember was 216,300 tons, against 189,542 tons in
October and 195,075 tons in November, 1937. Cu
mulative tonnage during the eleven months was
2,239,051 tons, against 1,661,238 tons for the com
parable period a year earlier. The relatively favor
able showing made in November, in face of the ad
verse stage of the river, was accounted for chiefly
by heavier oil and grain shipments, particularly
soy beans and corn.
RETAIL TRADE
Department Stores—The trend of retail trade in
the Eighth District, as reflected in statistics of de
partment stores in the principal cities which report
to this bank, is shown in the following comparative
statement:
Stocks
on Hand
Stock
Net Sales
Turnover
November, 1938
11 mos. 1938 Nov. 30,1938 Jan. 1, to
compared with
to same
comp, with
Nov. 30,
Oct., 1938 Nov., 1937 period 1937 Nov. 30, ’37 1938 1937
+11.4% - 0.3%
Ft. Smith, Ark........ — 7.3%
2.55 2.34
- 3.8%
Little Rock, A r k .. .. +10.4
+ 8.0 — 4.1
—10.5
2.70 2.48
Louisville, K y ...........— 4.8
— 2.2
— 12.0
—11.7
2.44 3.60
Memphis, Tenn........ .+ 0 .6
+10.3
—10.9
2.88 2.80
Pine Bluff, Ark........ .—10.4
6.1
— 4.2
2.17 2.21
Quincy, 111................ .— 9.1
2.84 2.85
— 0.8
— 6.9
—17.3
St. Louis, Mo.............+ 0 .0 1
+ 3.0
—12.4
— 5.9
3.73 3.52
Springfield, Mo..........+ 6 .7
+13.4
— 1.2
—19.6
2.68 2.31
All Other Cities....... .+ 1 .6
+ 7.7
— 3.7
— 1 2 .8
2.69 2.40
8th F. R. D istrict... + 0 .1
— 6.0
3.41 3.26
+ 4.2
—11.9
+
Percentage of accounts and notes receivable out
standing November 1, 1938, collected during No
vember, by cities:
Installment
Accounts
Fort Smith...
Little R ock..
Louisville......
Memphis.......
Pine Bluff. . . .
...... %
16.9
13.2
27.2
Excl. Inst’l
Accounts
41.8%
39.7
51.3
45.6
38.5
Installment Excl. Inst’l
Accounts
Accounts
Quincy.................... %
50.2%
St. Louis.........22.3
57.8
Springfield..............
27.5
Other Cities... 14.8
62.2
8th F. R. Dist. 20.3
52.0
Specialty Stores— November results in men's fur
nishings and boot and shoe lines are shown in the
following table:
Stocks
Stock
on Hand
Turnover
Net Sales
November, 1938
11 mos. 1938 Nov. 30, 1938 Jan. 1, to
compared with
to same
comp, with Nov. 30,
Oct., 1938 Nov., 1937 period 1937 Nov. 30, 1937 1938 1937
Men’s Furnishings........ + 5 .7 %
+ 3 .3 %
-1 6 .0 %
—15.7%
2.17 2.31
Boots and Shoes.......... —20.6
— 1.3
— 1.5
—14.3
6.46 5.96
Percentage of accounts and notes receivable out
standing November 1, 1938, collected during N o
vember :
Men’s Furnishings.................. 36.1%
Boots and Shoes.................... 38.0%
MINING AND OIL
Coal— Generally throughout this area during the
past thirty days, demand for industrial grades of
coal showed moderate improvement and prices
were firm. On the other hand, consumption of coal
for heating purposes continued backward, owing to
the unusually mild winter. Stocks held by retail
dealers were appreciably larger than a year ago.
Output of soft coal in the United States in No
vember, according to the National Bituminous Coal
Commission, totaled 35,480,000 tons, against 35,094,Page 4
000 tons in October and 36,428,000 tons in No
vember, 1937. In the first eleven months, 305,680,000 tons were produced as against 403,880,000 tons
in the like period last year. At mines in this area
November output was 0.2 per cent less than in
October and 0.8 per cent greater than in Novem
ber, 1937; during the first eleven months production
fell 19.1 per cent below that of the comparable pe
riod a year ago. Illinois mines produced 3,976,278
tons in November, as against 3,529,802 tons in O c
tober and 4,489,871 tons in November, 1937. There
were 113 mines in operation in November with
30,913 men on payrolls, against 107 active mines
and 29,729 operatives in October.
Petroleum— October output of crude oil in states
of the Eighth District was 1.9 per cent greater than
in September and 87.1 per cent more than in Oc
tober, 1937. Cumulative total for the first ten
months this year exceeded that of the like period in
1937 by 90.1 per cent. Stocks on November 1 were
0.6 per cent smaller and 3.1 per cent greater, respec
tively, than a month and a year earlier. Detailed
production and stocks by states are given in the
following table:
Production
Stocks
Cumulative
1937
1938
Oct.,
1938
Sept.,
1938
Oct.,
1937
. 1,624
. 2,768
86
526
Kentucky...........
1,721
2,553
89
547
1,259
912
68
436
15,051
16,881
798
4,784
4,910
2,675
37,514
(In thousands
of barrels)
Totals.............
, 5,004
Oct.,
1938
Oct.,
1937
9,155
5,424
702
4,611
2,278
11,598
3,133
1,156
2,936
10,853
2,919
918
19,892
18,165
17,626
WHISKEY
At mid-December thirty-two of the sixty-three
distilleries in Kentucky were in operation. This
number of active plants was considerably greater
than was expected a few months ago, when burden
some inventories caused many manufacturers to
curtail their production programs. With but few
exceptions, Kentucky distillers are holding down
output to meet current needs. However, with all
distiller costs, including grain, lower than at any
time in recent years, there is the temptation to pro
duce more whiskey than can be marketed satisfac
torily. At the close of the whiskey year, June 30,
stocks of all whiskey in the United States totaled
471,160,000 gallons, of which 181,951,000 gallons, or
38.6 per cent, were Kentucky bourbon. On the pres
ent basis of consumption and with entire stoppage
of production, the current supply would last seven
years. While this situation is decidedly unfavor
able, it shows appreciable improvement over this
time a year ago.
AGRICULTURE
Combined receipts from the sale of principal farm
products and Government payments to farmers in
states including the Eighth District during the pe
riod January-October, 1936, 1937, and 1938, and
during October, 1937 and 1938, are given in the fol
lowing table:
,
(In thousands
of dollars)
October
------------------------- .
1938
1937
' Cumulative for 10 months
------------------------------------------------ 1938
1937
1936
Indiana.................. $ 20,332 $ 20,928
Illinois...................
32,410
35,316
Missouri.................
25,263
27,166
Kentucky..............
8,075
7,213
Tennessee...............
16,249
14,918
Mississippi.............
37,118
32,260
Arkansas................
34,867
26,090
I 218,728 $ 244,520 $ 218,578
369,869
402,969
366,642
200,655
227,516
208,942
123,250
124,532
85,679
100,609
103,202
81,014
119,184
124,679
109,923
108,503
100,567
79,163
Totals................. $174,314 $163,891
$1,240,798 $1,327,985 $1,149,941
The U. S. Department of Agriculture's report
based on conditions as of December 1, which gives
final estimates of production, shows no marked
changes from forecasts of the principal Eighth Dis
trict crops contained in the preceding monthly bul
letin. Favorable weather which prevailed general
ly through the area during the fall, had the effect
of increasing yields of certain crops over what was
expected early in the season. In no recent year were
late crops harvested under more favorable condi
tions than this year. Frost dates were much later
than average, which fact permitted development
and maturing of late planted cotton, corn, tobacco,
legumes, potatoes and other less important produc
tions.
Aside from winter wheat, all field crops in the
district yielded higher per acre than average during
the ten-year period 1927-1936. Feed, fodder and
hay crops were abundant, and considerably above a
year ago and average. This fact, coupled with the
mild, open winter, has made for an unusually high
condition of livestock. The number of cattle, hogs
and sheep on feed at the end of the season is con
siderably larger than a year earlier. Scattered re
ports indicate that the condition of fall sown grains
at mid-December was in the main, good to excellent.
Tobacco markets for the 1938 crop opened early in
December, with offerings quite large, but prices
somewhat below a year ago.
Prices of farm products improved slightly in late
November and early December, but still were ap
preciably below levels prevailing at the same time
during the past several years. As of December 10,
the farm products group of the Bureau of Labor
Statistics index stood at 67.8 per cent of the 1926
average, as against 67.6 per cent on November 12;
73.4 per cent on December 11, 1937; 87.3 per cent
on December 12, 1936; 79.2 per cent on December
14, 1935 and 71.7 per cent on December 15, 1934.
Corn— Harvesting and housing of corn had been
about completed at mid-December, and barring a
certain amount of chaffy grain caused by the dry
fall, quality is reported generally high. Owing to
its cheapness, more com is being fed to livestock
and going into storage than was the case with any
crop in late years. The U. S. Department of Agri
culture estimates Eighth District production of
corn in 1938 at 332,179,000 bushels, which com
pares with 366,932,000 bushels harvested in 1937
and the 15-year (1923-1937) average of 329,999,000
bushels.
Cotton—The U. S. Department of Agriculture,
in its report based on conditions as of December 1,
estimates the Eighth District crop at 3,384,000
bales. This represents a decline of 42,000 bales from
the November 1 forecast and compares with 4,891,000 bales harvested in 1937 and the 15-year (19231937) average of 2,881,000 bales. Picking of the
crop had been virtually completed by the end of
November, so that the final estimate of production
will probably show little variation from the De
cember 1 figure.
The 1938 season for cotton was favorable from
the time of planting. This was true particularly
of the harvest period during which conditions were
rarely, if ever, better. The crop was picked and
ginned more rapidly than ever before. While the
comparatively small amount of cotton still in the
fields subsequent to mid-November sustained some
damage from weather, grade of the crop averages
high. Abandonment in 1938 was somewhat greater
than average, some acreage having been removed
by farmers after July 1 in order to comply with the
Government’s Agricultural Adjustment program.
Demand for spot cotton, both for domestic con
sumption and export, continued quiet and during
the first half of December the trend of prices was
downward. In the St. Louis market the middling
grade ranged from 8.07^ to 8.84^ per pound be
tween November 15 and December 15, closing at
8.18^ on the latter date, which compares with 8.78^
on November 15, and 7.85^ on December 15, 1937.
As indicating the early harvest and movement of
the crop, combined receipts at Arkansas and Mis
souri compresses from August 1 to December 9
totaled 1,491,972 bales, as against 1,697,322 bales
during the same interval in 1937. Stocks on hand
as of December 9 totaled 1,735,478 bales, against
1,085,859 bales on the corresponding date last year.
The Commodity Credit Corporation reports that
through December 1 loans had been made on 3,111,450 bales in all cotton states from the 1938 crop.
Of this amount 1,360,104 bales were accredited to
Eighth District states.
Livestock—As a result of the open season and
abundant feed and forage supplies, the condition of
livestock generally through the district is reported
the highest for this season in a number of years.
Page 5
The combined movement of cattle, sheep and hogs
to market in November fell slightly below the pre
ceding month but was measurably larger than in
November, 1937. The market for cattle and hogs
declined rather sharply during the second week in
December, influenced by excessive supplies and a
rather indifferent demand. Developments in the
cattle feeding situation during November, accord
ing to the Bureau of Agricultural Economics, gave
further evidence in support of the expectation that
the number to be fed during the 1938-1939 season
will be larger than in 1937-38. With large supplies
of feed grains, hay and roughage in all Corn Belt
states, and with feed prices showing little tendency
to advance from prevailing low levels, demand for
cattle to utilize this feed has strengthened.
Receipts and shipments at St. Louis as reported
by the National Stock Yards were as follows:
$10.31 at Henderson. Owing to the unfavorable
season for preparing tobacco in the dark fired area,
markets there are not expected to open until after
the first of the year.
COMMODITY PRICES
Range of prices in the St. Louis market between
November 15, 1938 and December 15, 1938, with
closing quotations on the latter date and on De
cember 15, 1937, follow s:
Close
High
Wheat
*Dec..................... . per bu..,.$
“
*May....................
“
*Juiy.....................
“
No. 2 red winter
“
No. 2 hard “
Com
«
*Dec.....................
*May....................
♦July.....................
“
No. 2 mixed . . .
No. 2 white.......
Oats
“
“
“
Receipts
Nov.,
1938
Cattle and Calves..............126,838
Hogs.....................................246,378
Horses and Mules.............. 2,174
Sheep................................... 77,403
Shipments
Oct.,
1938
Nov.,
1937
Nov.,
1938
160,639
193,694
2,376
102,500
135,441
228,476
2,895
66,905
86,476 108,440 86,225
132,372 112,253 129,559
2,2192,114
3,188
23,605 40,888 18,844
Totals............................... 452,793 459,209 433,717
Oct.,
1938
Nov.,
1937
Accounts from the various markets indicate that
the crop is predominantly a smoking type, and
shows evidence of house-burn throughout. There
has been a relative scarcity of extra high grade to
bacco in either light or red colors appearing,
which fact is partly responsible for the lower aver
age prices. On the other hand, there is a brisk
demand for tips and common grades, ascribed to
increased consumption of cheaper brands of cig
arettes.
To mid-December over 1,100,000 pounds of onesucker tobacco had been sold at an average of $7.11
per cwt., which compares with $9.60 last year. Dark
markets at Owensboro and Henderson report an
initial average of $8.70 per cwt., as compared with
$9.50 last year. Since the opening, prices have ad
vanced, with average at Owensboro $11.07 and
.62H
.65 y8
M%
.71
•70H
Dec. 15, 1938
$
$ .59^
•62*Hs
•62^
.66
.65M
•47H
.49^
.50Ks
.53
.54
•45^
.47
.27%
.27Vs
.24%
■25%
.61
.63H
.63^
.71
.70H
A7%
.33
.25^
.27
5.20
5.45
.0884
7.85
3.65
5.05
.0807
7.24
Dec. 15, 1937
.90%
$
.93K
M%
.92^
.93H
.46}*
•48H
.49^
.52
.53
•42H
.46M
•26K
•55H
■59H
.61 y8
.60%
•61H
.27%
.33
.32
. 31%
.27%
.25%
■33H
.32^
5.00
6.10
3.85 @ 5.20
5.15 @ 5.45
.0818
7.37
@
@
5.60
6.45
.0785
7.97
BUILDING
244,672 263,695 237,816
Tobacco— Burley auction markets opened at Lex
ington, Kentucky, on December 5 and sales aver
aged $21.65 per cwt., which was 60^ per cwt. below
the level for the opening sales last year. Other
burley markets opened the following day with sales
of 5,211,068 pounds for a total of $1,128,218. These
sales compare favorably with a state-wide total on
the opening day in 1937, when 4,715,102 pounds
were sold for $1,050,649, an average of $22.26 per
cwt. While some floors reported an average below
$20, at most markets the average was above that
figure. The top price reported was $33 for very
choice leaf.
Page 6
*July.....................
No. 2 white.......
Flour
Soft patent........ .per bbl.
Spring “ .........
Middling Cotton..,. .per lb.
Hogs on Hoof.......per cwt.
♦Nominal quotations.
Low
The dollar value of permits issued for new con
struction in the five largest cities of the district in
November was 33.4 per cent greater than in O cto
ber and 145.8 per cent more than in November,
1937. According to statistics compiled by the F.
W. Dodge Corporation, construction contracts let
in the Eighth District in November amounted to
$23,665,000, which compares with $20,716,000 in
October and $13,194,000 in November, 1937. Build
ing figures for November follow :
Repairs, etc.
New Construction
Cost
1937
1938
Permits
1937
1938
(Cost in
thousands)
25
19
83
254
241
12
22
79
180
188
622
679
. 663
481
678
691
Evansville
Little Rock
.
Memphis.........
Nov. Totals
Oct.
“
Sept.
“
$
77
67
245
724
922
2,035
1,525
1,729
Permits
1937
1938
Cost
1937
1938
42
22
181
321
262
59
62
36
119
118
82
106
40
138
147
$ 25
25
18
187
112
$ 39
828
1,195
1,290
394
523
553
513
642
702
367
586
726
309
359
782
$
21
103
47
99
CONSUMPTION OF E LE C TR IC ITY
Public utilities companies in six large cities of
the district report consumption of electric current
by selected industrial customers in November as
being 4.1 per cent less than in October and 2.4 per
cent greater than in November, 1937. Detailed
figures follow :
(K.W .H.
in thous.)
Evansville ,
Little Rock
Nov.,
No. of
Custom
1938
ers
K .W .H .
Oct.,
1938
K.W .H .
Nov.,
1937
K .W .H .
November, 1938
compared with
Oct., 1938 Nov., 1937
40
35
82
, 31
. 20
208
2,562
2,027
8,398
2,192
1,166
23,237
2,540
2,195
8,964
2,124
1,213
24,252
2,731
1,808
8,268
2,292
1,060
22,493
+
—
—
+
—
—
416
39,582
41,288
38,652
— 4.1
0.9%
7.7
6.3
3.2
3.9
4.2
- 6.2%
+12.1
+ 1.6
— 4.4
+10.0
+ 3.3
+ 2.4
BANKING AND FINANCE
Demand for credit in the Eighth District during
the past thirty days continued the gradual but
steady expansion which has been in effect since last
summer. While the improvement extended to vir
tually all classes of borrowers, it was most marked
with those whose requirements usually increase at
this time of the year. Banks in the large urban
centers reported a substantial volume of liquida
tion by mercantile and industrial customers, reflect
ing for the most part inventory reductions and
heavy volume of collections.
Marketing of the district’s 1938 tobacco crop,
which began early this month, has progressed
rapidly and demand for funds to finance this crop
are reflected in increased loan volumes at both
country and city banks in the typical tobacco pro
ducing areas. With passing of the peak of the cot
ton movement, requirements for handling that crop
have receded noticeably since the last week in
November. Influenced by the holiday season and
the improved employment situation, demand for
currency is the largest in recent years.
Member Banks— Between November 16 and De
cember 14, total loans of reporting member banks
in the principal cities increased 0.9 per cent. The
increase was centered chiefly in “ all other loans,”
reflecting higher requirements of mercantile and
agricultural borrowers. After reaching a peak for
the year at mid-November, gross deposits declined
slightly during the four-week period, but on Decem
ber 14 were still 10.4 per cent greater than on the
corresponding report date in 1937. Reserve bal
ances carried with the Federal Reserve Bank
receded slightly, but remained measurably above
the level at the same time a year ago.
Statement of the principal resource and liability
items of the reporting member banks follow s:
(In thousands of dollars)
Dec. 14,
1938
Nov. 16,
1938
Dec. 15,
1937
$318,241 $315,328 $323,076
Loans—total..........................................................
192,895
196,781
Commercial, industrial, and agricultural*....... ... 193,874
3,003
3,465
9,578
Open market paper...........................................
5,680
4,555
6,101
Loans to brokers and dealers......................... ....
12,951
12,853
12,788
Other loans to purchase or carry securities —
46,682
48,339
48,540
Real Estate loans.............................................
7,675
7,563
9,098
Loans to banks.................................................
43,594
44,332
46,298
Other loans*.....................................................
338,262
387,717
381,860
Investments—total................................................
226,563
221,044
198,055
U. S. Gov’t obligations...................................
60,762
61,469
45,583
Obligations guaranteed by U. S. Gov’t ..........
100,392
99,347
94,624
Other securities................................................
980,167
988,240
887,449
Gross deposits......................................................
698,254
789,410
795,582
Demand deposits.............................................
189,195
192,658
Time deposits....................................................... 190,757
500
Borrowings...........................................................
*Including both loans “ on securities” and “ otherwise secured and unsecured.”
Above figures are for 24 member banks in St. Louis, Louisville, Memphis,
Little Rock and Evansville. Their resources comprise approximately 62.0%
of the resources of all member banks in this district.
Aggregate amount of savings deposits held by
selected member banks on December 7 was 0.2 per
cent greater than on November 2 and 2.3 per cent
more than on December 1, 1937.
Interest rates remained at, or around, the record
low levels which have marked recent months. At
downtown St. Louis banks rates charged as of the
week ended December 15 were as follow s: Cus
tomers’ prime commercial paper, iy2 to 5 per cent;
collateral loans, 2 to 6y2 per cent; loans secured
by warehouse receipts, iy 2 to 5 per cent; interbank
loans, 2 to 5 per cent; cattle loans, 4 to 6 per cent.
Federal R eserve O perations —The volume of the
major operations of the Federal Reserve Bank of
St. Louis (including its Louisville, Memphis and
Little Rock branches), during November, 1938, is
indicated by the following figures:
Checks (cash items) handled...................................
Collections (non-cash items) handled......................
Transfers of funds...... . .............................................
Currency and coin received and counted.................
Rediscounts, advances and commitments..............
New issues, redemptions, and exchanges of securi
ties as fiscal agent of U. S. Govt., e t c ................
Bills and securities in custody—coupons clipped----
Pieces
Amounts
5,311,906
80,738
4,780
19,735,002
42
$1,083,811,686
26,421,473
285,258,797
34,499,253
1,656,839
230
1,775
164,940
Changes in the principal assets and liabilities of
this bank appear in the following table:
(In thousands of dollars)
Other advances and rediscounts..........
Bills bought (including participations).
Dec. 17,
1938
Nov. 17,
1938
Dec. 17,
1937
$
$
$
59
812
2
106,791
60
298
2
106,791
239
824
78
112,548
107,664
107,151
113,689
338,036
257,499
183,770
345,727
265,572
181,930
297,628
222,525
183,270
Industrial commitments under Sec. 13b.
525
574
176
Ratio of reserve to deposit
and F. R. Note liabilities....................
76.6%
Total earning assets.....................................
73.3%
77.3
Following are the rates of this bank for accom
modations under the Federal Reserve A c t :
(1) Rediscounts and advances to member banks, under
Sections 13 and 13a............................. .................................. per annum
(2) Advances to member banks, under Section 10b......................2 % per annum
(3) Rediscounts, purchases, and advances to member banks,
nonmember banks and other financing institutions
under Section 13b:
.
(a) On portion for which such institution is obligated.......3H% per annum
(b) On remaining portion.....................................................4 % per annum
(4) Commitments not exceeding six months to member
banks, nonmember banks and other financing institu
tions, to rediscount, purchase, or make advances,
under Section 13b...................................................................
flat(5) Advances to established industrial or commercial ( 4 % to
businesses, under Section 13b................................... .
I 5
per annum
(6) Advances to individuals, firms and corporations,
including nonmember banks, secured by direct obliga
tions of United States under Section 13................................ 4 % per annum
Debits to Individual Accounts—The following
comparative table of debits to individual accounts
reflects spending trends in this district:
(In thousands
of dollars)
Nov.,
1938
East St. Louis and Nat’l
Stock Yards, 111... .$ 34,008
5,428
El Dorado, Ark.......
26,314
Evansville, Ind........
12,222
Fort Smith, Ark......
5,807
Greenville, Miss.......
2,565
Helena, Ark.............
34,524
Little Rock, Ark. . . .
Louisville, K y .......... . 145,791
Memphis, Tenn........ 127,356
6,621
Owensboro, K y ........
8,957
Pine Bluff, Ark........
7,829
St. Louis, Mo........... 512,200
1,808
Sedalia, Mo..............
12,831
Springfield, Mo........
6,544
Texarkana, Ark.-Tex.
(Completed December 21, 1938)
.$950,805
Nov.,
1937
Oct.,
1938
$
36,814
5,979
27,020
13,210
6,397
3,431
43,158
151,806
164,194
6,704
12,604
7,449
542,800
1,852
13,462
7,406
$1,044,286
$
34,809
4,982
29,953
12,994
6,454
2,656
35,448
151,962
135,381
5,750
9,957
7,815
572,260
2,011
13,437
7,349
$1,033,218
Nov. 1938,
Oct. 1938
Nov. 1937
- 7.6%
— 9.2
— 2.6
— 7.5
— 9.2
—25.2
—20.0
— 4.0
—22.4
— 1.2
—28.9
+ 5.1
— 5.6
— 2.4
— 4.7
—11.6
— 2.3%
+ 9.0
—12.1
— 5.9
—
10.0
— 9.0
—
8.0
—
10.0
— 3.4
—
2.6
— 4.1
— 5.9
+15.1
+ 0.2
—10.5
—10.1
— 4.5
—11.0
Page 7
NATIONAL SUM M ARY OF BUSINESS CONDITIONS
BY BOARD OF GOVERNORS OF FEDERAL RESERVE SYSTEM
INDUSTRIAL PRODUCTION
Index of physical volume of production, adjusted for seasonal
variation, 1923-1925 average *= 100. By months, January, 1934,
through November, 1938. Latest figure 103.
FACTORY EMPLOYMENT
The sharp rise in industrial production, which began early last sum
mer, continued in November. Preliminary reports for the first three
weeks of December indicate some slowing down in the advance. Em
ployment also increased in November and payrolls showed little
change although a decline is usual at this season. Distribution of
commodities to consumers increased considerably.
Production—The Board’s seasonally adjusted index of industrial
production in November rose to 103 per cent of the 1923-1925 average
from 96 per cent in October. Output of steel continued to increase,
contrary to the seasonal trend, and there was a further sharp rise in
automobile production. In the first three weeks of December activity
at steel mills declined somewhat more than seasonally, while output
of automobiles continued at the high level reached at the end of No
vember. Lumber production in November decreased by more than the
usual seasonal amount. In the nondurable goods industries, shoe pro
duction declined seasonally, while output of textiles showed a consider
able expansion, with increased activity at cotton, wool, and silk mills.
At mines, bituminous coal output increased further and production of
anthracite showed less than the usual seasonal decline. Output of
petroleum showed little change.
Value of construction contracts awarded in November showed a
decline from the high level reached in October, according to F. W.
Dodge figures for 37 eastern states. Private and public projects both
declined following increases in October. The decline in contracts for
private residential building was less than seasonal.
Index of number employed, adjusted for seasonal variation,
1923-1925 average =*= 100. By months, January, 1934, through
November, 1938. Latest figure 90.1.
CONSTRUCTION CONTRACTS AWARDED
Employment—Employment increased somewhat further and pay
rolls showed little change between the middle of October and the
middle of November, although declines are usual at this time of year.
In manufacturing the number employed continued to rise, reflecting
principally a further sharp increase at automobile factories and sub
stantial increases in the machinery, steel, and textile industries. Em
ployment declined seasonally at establishments producing clothing and
shoes; in most other industries employment increased somewhat. In
lines other than manufacturing, employment showed some increase,
when allowance is made for usual seasonal changes.
Distribution—Distribution of commodities to consumers showed a
considerable increase in November. Department store sales and mail
order sales, which had been retarded in October by unseasonably warm
weather, rose sharply, and sales at variety stores also increased in No
vember. Sales of automobiles to consumers expanded sharply fol
lowing the introduction of new models and in November were larger
than a year earlier. Freight-car loadings, which had increased consid
erably in previous months, showed a slightly less than seasonal decline
in November.
Three-month moving averages of F. W. Dodge data for value of
contracts awarded in 37 Eastern States, adjusted for seasonal
variation. Latest figures based on data for September and October
and estimate for November.
MEMBER BANK RESERVES AND RELATED ITEMS
Commodity Prices— Prices of some industrial materials, such as
nonferrous metals, hides and cotton goods, decreased somewhat from
the middle of November to the third week of December. Sugar prices
also declined, while grains advanced somewhat. Prices of most other
agricultural and industrial commodities continued to show little change.
Bank Credit—In connection with pre-holiday trade, there was a
sharp increase in money in circulation and, as the result of this in
crease, in the demand for currency, together with treasury operations.
Around December 15, there was a temporary decline in member bank
reserves.
Wednesday figures, January 3, 1934, through December 21, 1938.
Page 8
Following declines during November, total loans and investments
of reporting member banks in 101 leading cities increased during the
first three weeks of December, largely reflecting operations of the
Treasury. Loans to security dealers by New York banks increased
sharply, reflecting temporary borrowing for the purpose of carrying
Government securities exchangeable for new issues on December 15.
Adjusted demand deposits rose to a new high level in the first half of
December.
@FedFRASER