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BUSINESS CONDITIONS
Monthly Review of Agriculture, Industry, Trade and Finance
Released for Publication in Morning Papers of Dec . 31, 1940
FEDERAL
RESERVE
BANK
H o t S p r in g s N a tio n a l P a r k , A r k a n s a s .
OF
ST.
LOUIS
SUMMARY OF EIGHTH DISTR ICT
D ec. 1, 1940 comp, w ith
1939
Av. 1923-39
Agriculture:
Estimated yield of 7 crops....................... — 4.3%— 3.2%
N ov., 1940 comp, w ith
Livestock
Oct., 1940 N ov., 1939
Receipts at National Stock Yards..........— 10.7% + 18.4%
Shipments from aforesaid Yards............— 30.5 — 6.2
Production and Distribution:
Sales by mfrs. and wholesalers..............— 8.6 + 12.0
Department store sales............................. + 3.6 + 10.1
Car loadings............................................... — 5.7 — 0.3
Building and Construction:
Bldg. permits, incl. repairs j
‘' _^ g ^ 12 5
Value construction contracts awarded.. + 18.5 -j- 91.4
Miscellaneous:
Commercial failures.{v ijjX
+- p 12A
. i a uilkiesV
x i i u w . . . .7.7.
..........
t+
J1L0
-J-.v/
Consumption of electricity....................... — 2.8 + 19.2
Debits to individual accounts..................— 3.3 + 11-2
Life Insurance Sales ................................— 11.6 — 8.4
Dec. 18,’40 comp, w ith
Member Banks (24):
Nov. 20 ,’40 Dec. 20 ,’39
Gross deposits...........................................+ 1.4%+ 8.6%
Loans...........................................................+ 4.6 + 9.4
Investments.................................................+ 0.2 — 0.05
H E course of general business in the Eighth
D istrict during November and the first half of
December continued upward, following trends
which have been in effect w ith practically no inter
ruption since last spring. Advances prevailed in
most lines of m anufacturing, including many which
ordinarily are affected by seasonal declines at this
time of year. Taking into consideration the usual
seasonal factors, the situation as a whole at midDecember, as indicated by a m ajority of measures
used in gauging trade and industrial activity, was
the most satisfactory in more than a decade. W hile
production of durable goods continued to lead in
the rise, output and distribution in the nondurable
category were also pushed to higher levels. Increas
ingly greater activity was noted in m aterials re
quired for the national defense program , but as
earlier in the year in this area bulk of the better
m ent in business was attributable to expansion in
civilian needs. Consum ers’ goods have responded in
marked degree to rising employment and payrolls,
public purchasing power and advent of the holiday
season.
As invariably is the case at this season, interest
centered to a great extent in retail distribution. T he
mild open fall had the effect of retarding the move
m ent of some cold w eather merchandise, notably
apparel, certain drugs and chemicals, heavy foot
wear, fuel, etc. W ithal clearance in these lines
is reported relatively satisfactory, particularly with
the arrival of more seasonable tem peratures since
T
Page 2
late November. In both the large cities and country
holiday shopping began earlier than usual, and pre
lim inary reports from scattered sections indicate the
largest sales volume since 1929. D epartm ent store,
variety store and mail order house sales in Novem
ber increased in somewhat more than the expected
seasonal amount. November volume of departm ent
stores in the principal cities was 3.6 per cent
greater than in October and 10.1 per cent above a
year ago. F or the eleven m onths cumulative sales
were 7.1 per cent above the same period in 1939.
In the St. Louis area sales of new automobiles in
November fell slightly behind the high October
total but were 17 per cent greater than a year ago.
A fter declining in October, production of bitu
minous coal at mines in this general area increased
sharply, November output being 14.5 per cent larger
than in the preceding m onth and 5 per cent above a
year ago. Production of crude oil in states of the
district in October was m aintained at about the
September rate and for the ten m onths this year
cumulative production was approxim ately 60 per
cent greater than in the like period in 1939. Lum ber
production declined slightly from October to No
vember, but was still unusually high for the month
and orders continued considerably above current
output.
As of mid-December steel ingot production at
district mills was at 87.5 per cent of capacity, the
same as a month earlier and com paring w ith 85 per
cent a year ago. Consumption of electric current by
industrial users in the principal cities in November
was 2.8 per cent less than in October but 19.2 per
cent greater than in November, 1939. Prices of
scrap iron and steel rose sharply and the price of
pig iron was advanced $1 per ton by a num ber of
producers in December.
A gricultural prospects in the E ighth D istrict, as
reflected in the final report of the U. S. D epartm ent
of Agriculture, based on December 1 conditions,
showed no notable changes as contrasted with offi
cial forecasts earlier in the fall. T he late summer
and fall drouth in some areas reduced yields of cer
tain late crops, but w eather conditions were ideal
for harvesting, housing and moving the principal
productions.
Commercial failures in the E ighth Federal Reserve
D istrict in November, according to Dun and Bradstreet, numbered 44 with liabilities of $534,000, as
against 39 defaults in October involving liabilities
of $481,000 and 32 defaults for a total of $475,000 in
November, 1939.
D ET A I LE D SU R VE Y OF D IST RI CT
MANUFACTURING AND WHOLESALING
N et Sales
L ines of Commodities
Stocks
November, 1940
N ov. 30, 1940
D ata furnished by Bureau of Census,
compared with
comp, with
U . S. Dept, of Commerce.
Oct., ’40 N ov., ’39 N ov. 30, 1939
A utom otive Supplies.........
Boots and S h o es..................
D rugs and Chemicals
D ry G oods..............................
Electrical Su pplies..............
F urniture................................
Groceries................................
H ardw are..............................
Tobacco and its Products.
M iscellaneous.......................
T otal all lin es.......................
+ 19.8%
— 29.0
— 8.5
— 1.5
— 4.6
—
10.8
— 5.8
— 7.9
+ 4.3
10.1
+
—
8.6
+ 17.89!
+ 2 6 .0
-0 10.6
12.6
— 3.4
— 2.7
+ 28.1
10.6
2.0
12.0
+
+
+
+
+
+ 25.1
— 10.4
+ 8.5
— 24.9
+ 5.9
+ 4 6 .8
+ 17.9
+ 3.5
12.2
+
Automobiles—Combined passenger car, truck and
taxicab production in the U nited States in Novem
ber totaled 487,352, as against 493,223 in October
and 357,782 in November, 1939.
Iron and Steel P ro d u c ts— D uring November vir
tually all sections of the iron and steel industry in
this district underw ent further marked expansion.
Production of raw, semi-finished and completed
m aterials reached the highest point of the year, and
in the case of num erous plants, the highest of
record. Shipments continued at the high rate which
has m arked recent m onths, but despite this fact
accretions to unfinished orders were the rule. De
fense program requirem ents accounted for a sub
stantial part of the increased business, but the
greater portion was ascribed to extraordinary civil
ian demands. Since December 1 there has been some
tapering off in new ordering, owing to the usual
seasonal influences, reaffirmation of current prices
for first quarter of 1941, and the fact th at num erous
consumer requirem ents for December and January
have been satisfied.
T he principal consuming groups, including rail
road equipm ent builders, m achinery and engine m an
ufacturers, the building industry and heating appar
atus interests, increased their takings. Demands for
sheets, plates, strip and other flat rolled steel con
tinued to mount, and deliveries on all such items
were further extended. L engthier delivery dates
were also reported on wire, bars, alloy steels and
other im portant products. W arehouse and jobbing
interests report November sales approxim ately 8.5
per cent greater than in October, and about onefifth above the November total a year ago. Volume
of these interests during the past three m onths has
been m arkedly stim ulated by backward deliveries
by mills and other prim ary sources.
The melt and shipm ents of pig iron in November
exceeded those of the preceding m onth by a large
m argin and were the highest for the m onth in more
than a decade. R eports covering the first half of
December indicate that pig iron deliveries to melters
will be well ahead of November. Scrap iron and
steel prices continued to advance, reaching the
highest point of the movement at mid-December.
At mills in this area steel ingot production at midDecember was at 87.5 per cent of capacity, the same
as a m onth earlier and comparing with 85 per cent
at the same time last year. W orking schedules at
steel foundries and grey iron and malleable shops
advanced further, and operations at structural steel
fabricating yards m aintained the high record of
the preceding two months.
For the entire country production of pig iron in
November wras at the highest daily rate of record.
Total output at 4,397,656 tons, according to the
m agazine “Steel,” was slightly below th at of Octo
ber, but 231,144 tons more than in November, 1939.
November production of steel ingots in the U nited
States totaled 5,864,333 tons, against 6,063,845 tons
in October and 5,694,788 tons in November, 1939.
RETAIL TRADE
D epartm ent Stores — T he trend of retail trade in
the E ighth District, as reflected in statistics of
departm ent stores in the principal cities which
report to this bank, is shown in the following comparative sta te m e n t:
Stocks
Stock
Ft. Smith, A rk .. .
L ittle Rock, Ark.
Louisville, Ky. . .
Memphis, Tenn. .
Pine Bluff, A rk..
Quincy, _111.............
St. Louis, Mo. . .
Springfield, Mo. .
All Other Cities. .
8th F. R. District
N et Sales
on Hand
November, 1940 11 mos. ’40 Nov. 3 0/40
compared with
to same
comp, with
O ct.,’40 N o v ./3 9 period ’39 Nov. 30/3 9
+ 13.6% + 2 4 .4 %
(-11.8%
— 8.9%
+ 14.2
+ 19.5
- 9.4
— 6.4
+ 13.0
+ 14.7
- 9.6
— 1.8
+ 9.3
- 6.5
+ 1.6
+ 7.1
+ 3 5 .9
+ 8.2
+ 19.3
- 3.4
+ 13.5 + 1 7 .3
- 1.6
— 2.9
— 1.8
+ 7.9
- 6.3
+ 0.5
— 1.0
+ 14.3
-15.6
+ 12.8
+ 2 7 .9
+ 19.9
-13.4
+ 10.9
+ 3.6
+ 10.1
- 7.1
— 0.04
T urnover
Jan. 1, to
Nov. 30.,
1940 1939
2.73 2.50
3.28 2.92
4.04 3.73
3.12 3.13
2.36 2.63
3.62 3.51
4.06 4.10
3.28 2.81
3.01 3.0,0
3.78 3.73
Percentage of accounts and'notes receivable out
standing November 1, 1940, collected during November, by cities :
Installm ent Excl. Instal.
A ccounts
Accounts
Fort Sm ith .............. °/
L ittle R ock. . . 15.8
L ouisville . . . . 16.7
M emphis . . . . 27.3
44.6%
40.4
52.4
47.2
Installm ent Excl. Instal.
Accounts
A ccounts
Q uincy............................°,
St. L o u is .............. 19.7
Other C i t i e s .... 10.8
8th F. R. D istrict 19.8
56.0%
59.1
48.0
53.5
Specialty Stores — Novem ber results in m en’s
furnishings and boot and shoe lines are shown in
the following table:
N et Sales
November, 1940 11 mos. ’40
compared with
to same
O ct.,’40 N o v .,*39 period ’39
M en’s Furnishings + 2 8 .1
+ 2 1 .9
6.6
+ 16.5
B oots and Sh oes. — 7.5
+ 4.2
+
Stocks
on Hand
N ov. 3 0 /4 0
comp, w ith
N ov. 3 0 /3 9
— 4.2
— 11.5
Stock
Turnover
Jan. 1, to
N ov. 30,,
1940 1939
2.35 2.36
6.87 6.46
Percentage of accounts and notes receivable out
standing November 1, 1940, collected during No
vember :
M en’s F u rn ish ings.....................38.4%
Boots and S h oes......................40.5%
Page 3
MINING AND OIL
C oal— More seasonable w eather which caused a
pickup in demand for domestic sizes, coupled w ith
continued heavy industrial consumption, was re
flected in a noticeable increase in Novem ber pro
duction of bitum inous coal at mines in this area
over the preceding m onth and a year ago. O w ing to
mild w eather in the early fall, stocks at retail yards
as of m id-Decem ber were relatively high, and little
reordering from mines by these interests has taken
place.
November output of soft coal in the U nited States,
according to the Bitum inous Coal Division, U. S.
D epartm ent of the Interior, totaled 40,300,000 tons,
as against 38,700,000 tons in October and 43,301,000
tons in November, 1939. Cum ulative tonnage for the
first eleven m onths of the year was 412,995,000 tons,
com paring w ith 353,402,000 tons during the same
interval in 1939. A t mines in this general area out
put during Novem ber was 14.5 per cent g reater than
in October and 5.1 per cent more than in November,
1939. Cum ulative tonnage in the first eleven m onths
was greater by 3.7 per cent than in the correspond
ing period last year.
A t Illinois mines 4,234,360 tons were lifted in
November, against 3,723,842 tons in October and
4,228,066 tons in November, 1939. T here were 98
mines in operation in November, w ith 27,013 men
on payrolls, com paring w ith 102 active mines and
26,619 operatives in October.
P etroleum — October output of crude oil in states
of the E ighth D istrict was 0.7 per cent less than in
Septem ber and 5.6 per cent g reater than in October,
1939. Cum ulative total for the first ten m onths this
year was 62.4 per cent in excess of the correspond
ing period in 1939. ^Stocks on October 31 were 2.2
per cent less and 2.3 per cent greater, respectively,
than a m onth and a year earlier. Detailed produc
tion and stocks by states are given in the following
fpKIp •
________ Production_____
(I n thousands
of barrels)
O ct.,
1940,
Sept.,
1940
O ct.,
1939
Stocks
—Cumulative
1940
1939
A rkansas.............. 2,121
2,178
1,993
21,427 16,931
I llin o is ................ 10.795
10,925 10,601 126,345 73,348
Indian a................
583
516
180
3,660
974
464
444
443
4,357 4,660
K e n tu c k y ............
T o ta ls................ 13,963 14,063 13,217 155,789 95,913
Oct. 31, Oct. 31,
1940
1939
2,007 1,826
13,716 13,824
3,222 2,917
1,556 1,467
20,501 20,034
TRANSPORTATION
According to officials of railroads operating in this
district, freight traffic during Novem ber and the
first part of December showed considerably less
than the usual seasonal decline. The exhibit of
southern carriers was helped by the belated cotton
movement, also an extraordinarily heavy m ovem ent
of forest products. Coal loadings picked up and
Page 4
those of m iscellaneous m erchandise held at relatively
high levels.
The St. Louis Term inal Railw ay Association,
which handles interchanges for 28 connecting lines,
interchanged 86,601 loads in November, as against
91,787 loads in October and 86,821 loads in Novem
ber, 1939. D uring the first nine days of December
the interchange am ounted to 26,627 loads, com par
ing w ith 26,148 loads during the corresponding
period in Novem ber and 25,768 loads during the first
nine days of December a year ago. F or the entire
country, loadings of revenue freight for the first 49
weeks this year, or to December 7, totaled 34,374,215
cars, against 32,033,910 cars for the corresponding
period in 1939 and 28,777,422 cars in 1938.
Estim ated tonnage of the Federal Barge Line
betw een St. Louis and New Orleans in Novem ber
was 143,000 tons, against 181,490 tons in October
and 192,435 tons in November, 1939. Cum ulative
tonnage for the first eleven m onths was 1,860,608
tons, which compares w ith 1,767,083 tons for the
sim ilar period in 1939.
WHISKEY
Of the 61 distilleries in K entucky, 44 were in
operation as of December 1, compared w ith 39 a
m onth earlier. A ccording to latest trade reports,
general conditions in the industry continue favor
able, and optim ism is felt relative to business during
the next few m onths. A lthough whiskey made in
the season of 1936-1937, a large production period,
is coming of age this year, no excess of bulk w his
key is reported on the m arket. Prices on bulk liquor
have been strengthened considerably in recent
m onths, including those on the distillation of 19361937. D espite the price advance, consum ption is
expected to expand, due to generally improved
economic conditions. T he U. S. Collector of Internal
Revenue for the K entucky district is reported to
have announced th a t whiskey taxes paid to the
departm ent in Novem ber were the largest for any
m onth since repeal of the Prohibition am endm ent.
AGRICULTURE
Combined receipts from the sale of principal farm
products and Governm ent benefit paym ents to
farm ers in states including the E ighth D istrict dur
ing the period January-O ctober, 1938, 1939 and
1940, and during October, 1939 and 1940, are given
in the following ta b le :
(I n thousands
of dollars)
______ October
1940
1939
I n d ia n a ................... $27,642
Illin o is.....................
51,971
M issouri...................
37,397
K entu ck y................
9,997
T ennessee...............
20,064
M ississip pi..............
34,440
A r k a n sa s................
45,638
T o ta ls.................. 227,149
$29,498
55,256
32,232
9,956
16,133
35,988
30,967
210,030
Cumulative for 10 m onths
1940
1939
1938
,$248,168
464,150
242,319
119,095
10,4,816
109,808
121,238
1,409,594
$227,133
426,811
222,607
113,424
103,150
124,357
114,982
1,332,464
$225,461
417,335
205,574
129,412
108,585
132,216
123,916
1,342,499
Farming Conditions— Final estim ates of the prin
cipal crops in the E ighth D istrict given by the U. S.
D epartm ent of A griculture in its report based on
December 1 conditions, show no m arked changes
from forecasts made in the preceding m onthly bul
letin. Fall harvesting was accomplished under
m ainly auspicious w eather conditions, and late crops
were garnered and housed w ith a m inimum of loss
to quality and quantity. An exception was cotton,
a considerable portion of which crop rem ained in
the fields and quality of the staple has been some
w hat lowered by rains. Tobacco m arkets for the
1940 crop opened early in December and while ini
tial averages were above a year ago, prices have
declined since. Acreage planted to w inter w heat this
fall in states of this district was som ew hat larger
than a year earlier, but 8.4 per cent below the 10year (1928-1937) average. Condition as of Decem
ber 1 was 82 per cent, com paring w ith 72 per cent
a year earlier and 85 per cent, the 10-year average.
Corn— E ighth D istrict corn production for all
purposes in 1940 is estim ated at 326,128,000 bushels,
against 339,742,000 bushels harvested in 1939 and
the 17-year (1923-1939) average of 330,920,000 bush
els. H usking and cribbing of corn had been about
completed as of mid-December, and reports from
m any sections reflect generally high quality. Yields
varied broadly w ith location. In Illinois and Indiana
the crop suffered severely from July and early A u
gust drouth. According to the Governm ent report,
over half the total acreage this year in the Corn
Belt was planted w ith hybrid seed, as compared
w ith about four-tenths last year and about onefourth in 1938. F or the entire country this year’s
corn crop is estim ated at 2,499,200,000 bushels,
against 2,602,133,000 bushels in 1939 and the 10-year
average of 2,299,342,000 bushels.
Cotton— An E ighth D istrict cotton crop of 3,335,000 bales is forecast by the Crop R eporting Board
of the U. S. A gricultural M arketing Service, based
on indications as of December 1. This is a decrease
of about 1.0 per cent from the November 1 fore
cast, and compares w ith 3,429,000 bales produced in
1939 and the 17-year (1923-1939) average of 2,954,000 bales. T he indicated average yield per acre is
unusually high, th a t in A rkansas of 350 pounds
being the highest of record for the State.
W hile w eather early in the season was very favor
able for harvesting, developm ent of late bolls was
retarded by adverse w eather in November. Freezes
in the middle of the m onth and rains in some sec
tions during the latter p art were especially injurious
because of the lateness of the crop. As of December
1 a substantial portion of the crop rem ained in the
fields, with grades and staples deteriorating with
each rainy spell. It is generally conceded th at prac
tically none of this belatedly picked cotton will be
eligible for the Governm ent loan. In m any sections
planters were handicapped by a shortage of pickers.
Reflecting the lateness of the crop, in states in
cluding the E ighth D istrict only 2,992,557 bales had
been ginned from the 1940 grow th prior to Decem
ber 1, as against 3,714,567 bales during the like
period in 1939 and 3,717,813 bales in 1938. Com
bined receipts at M issouri and A rkansas compresses
from A ugust 1 to December 13, totaled 1,528,496
bales, compared w ith 1,594,148 bales for the corres
ponding period a year earlier; shipm ents, 892,289
bales, against 1,108,614 bales. Stocks on hand as of
December 13 am ounted to 1,532,209 bales, against
1,867,371 bales on the corresponding date in 1939.
T rading in cotton in the Mid^South continued
fairly active. Offerings from the country receded
further on the higher grades, but showed some pick
up on the lower grades. D em and centered chiefly in
grades ranging from m iddling through strict good
ordinary wTith staples from 1 to 1H inches. In the
St. Louis m arket the m iddling grade ranged from
9.10c to 9.65c per pound betw een Novem ber 15 and
December 16, closing at 9.60c on the latter date,
which compares w ith 9.10c on November 15 and
10.60c on December 15, 1939.
Livestock — T he m ost im portant development in
the cattle feeding situation during November was
the sharp drop in the m ovem ent of stocker and
feeder cattle into the Corn Belt States. The num ber,
inspected at stockyards, was 25 per cent sm aller
than a year earlier, and except for the drouth years
of 1934 and 1936, was the sm allest of record for the
month. However, for the five m onths, July through
November, total in-shipm ents through stockyards
were about 2 per cent larger this year than last, and
the largest for the period since 1924.
The num ber of lambs fed in the U nited States
during the 1940-1941 feeding season will be larger
than the 1939-1940 season. T otal shipm ents of
feeder lambs into the Corn Belt States during the
five months, July through November, were the
largest of record. Shipm ents into Indiana, while
below a year ago, were much above average.
Receipts and shipm ents at St. Louis as reported
by the National Stock Yards were as follows:
Receipts________
N ov.,
1940
Oct.,
1940
N ov.,
1939
Cattle and C alves. . . . 112,665 162,285 115,856
H ogs ............................. ,. .330,211 298,906 237,943
Horses and M ules . . . . 1,422
1,600
1,876
91,672 62,307
T o ta ls.................... .........494,960 554,463 417,982
______ Shipments
N ov.,
1940
Oct.,
1940
N ov.,
1939
44,729 74,021 54,321
70,,939 78,609 67,938
1,346
1,484
1,402
8,206 25,989
9,868
125,220 180,103 133,529
Taken as a whole w eather during the fall was ausPage 5
picious for livestock, and m ost recent reports from
scattered sections, notably in Illinois, Indiana and
Missouri, indicate th at the condition of herds has
m aintained the high average which featured earlier
m onths this year. Alm ost universally feed and for
age crops are sufficient to supply normal rations
per head during the rem ainder of the season w ith
out heavy im pingem ent upon reserves. Eighth Dis
trict hay production is estim ated by the U. S. De
partm ent of A griculture at 8,210,000 tons, against
7.689.000 tons in 1939 and the 17-year (1923-1939)
average of 6,585,000 tons.
Tobacco — Production of all types of tobacco in
the E ighth D istrict is estim ated by the U. S. D epart
m ent of A griculture in its December 1 report at
245.430.000 pounds, which compares with 282,059,000 pounds harvested in 1939, and the 17-year (19231939) average of 285,401,000 pounds. Stocks of leaf
tobacco owned by dealers and m anufacturers in the
U nited States and Puerto Rico on October 1 totaled
2.716.703.000 pounds, against 2,211,696,000 pounds a
year earlier. T otal stocks were 78,881,000 pounds
higher than on July 1, 1940, and 505,007,000 pounds
greater than on October 1, 1939.
Initial sales for the 1940 crop were held in Lex
ington, Ky., on December 2 and at other burley
m arkets on December 3. Prices by grades on the
opening day were $1 to $8.50 per cwt. higher than
at the opening last year, though volume of sales
was smaller. Sales during the first week totaled
25,600,250 pounds, bringing sellers $4,534,327. This
compares w ith sales of 66,722,459 pounds in the
opening week of 1939 for a total of $10,987,353.
W hile the average price, $17.71 per cwt., received
during the opening week was higher than for the
same week last year, it was the exact price received
per cwt. for the entire 1939 crop.
Unfavorable w eather retarded handling of the
dark fired crop, and as a result it is estimated that
only 40 per cent in the E astern Fired district and
75 per cent in the W estern Fired district had been
placed in bulk as of December 2. W hile sound and
well finished, it is indicated th at this type will not
yield as much dark brow n leaf as previously esti
mated. M arkets for the E astern Fired district will
open at Clarksville, Tenn., on January 7, while
opening sales in K entucky will be held at H opkins
ville on January 9.
Relatively little Green River tobacco has been
stripped, and indications point to light sales in the
early part of the season. Opening sales for the type
were held at Owensboro, Ky., on December 9, at
H enderson, Ky., on December 10 and Madisonville,
Ky., on December 11.
Page 6
A large part of the one sucker tobacco has been
prepared for m arket and reports indicate a normalquality crop. O pening sales for this type were held
at Russellville, Ky., on December 10 and at other
m arkets on December 11.
C O M M O D ITY PR IC ES
Range of prices in the St. Louis m arket betw een
Novem ber 15 and December 16, 1940, w ith closing
quotations on the latter date and on December 15,
1939, follow s:
clo se ____________
W heat
*D ec.......................per bu.
#M ay .....................
“
* Ju ly.......................
“
N o. 2 red winter
“
No. 2 hard “
“
Corn
*D ec.......................
*M ay.....................
“
*July.......................
“
N o. 2 m ix e d .. .
“
No. 2 w h it e .. . .
“
Oats
*D ec........... ...........
*M ay.....................
* Ju ly .....................
N o. 2 white
“
Flour
Soft p a te n t.. . . perbbl.
Spring “ . . . .
“
M iddling Cotton per lb.
H ogs on H oof . .percw t.
*Nom inal quotations.
H igh
L ow
D ec. 16, 1940
D ec., 15, 1939
} -8 7 ^
•8 5 ^
.82
.963^
.923^
$ -8 4 ^
.8054
.75*$
.91
•88 54
$
$
.6254
.62 H
.6 2 ^
.68
.7 054
.5 6 /s
.56*6
.5 6 ^
.59
.63 y2
.5656
.56*6
.56*6
.59
•6354
.53
.54*6
.54*4
.56*4
.61*4
.38Vs
.36 Vs
.327/8
.3954
.36J4
.327/s
.2 9 ^
.3854
.3754
•3351}
•29 y2
.3 8 /2
.40
.38
.337/s
.4254
6.05
5.50
.0965
6.35
5.35
5.35
.0910
5.89
.84*6
.8054
•75*6
.91
.8854
5.35@ 6.05
5.35 @ 5.50
.0960
6.35
1.0054
•9854
.9654
1.0,5
1.0454
5.90@ 6.70
5.90,® 6.15
.1060
5.25
BUILDING
T he dollar value of perm its issued for new con
struction in the five largest cities of the district in
Novem ber was 8.3 per cent more than in October
and 32.4 per cent greater than in November, 1939.
According to statistics compiled by the F. W . Dodge
Corporation, construction contracts let in the E ighth
D istrict in Novem ber am ounted to $32,140,000,
which compares w ith $27,121,000 in October and
$16,791,000 (revised) in November, 1939. Building
figures for Novem ber follow:
N ew Construction
( Cost in
thousands)
Permits
1940 1939
Evansville
L ittle Rock. . .
L ouisville
20
39
127
380
257
823
1,081
964
.
N ov. T o ta ls. .,,.
Oct.
“
.
Sept.
“
.
29
39
117
223
223
631
752
719
Repairs, etc.
Cost
1940
1939
$
66
153
363
561
862
2,005
1,851
2,023
Permits
1940 1939
$ 144
226
193
284
667
1,514
4,022
1,645
92
66
43
138
135
474
664
623
79
104
28
163
165
539
668
590
1940
Cost
1939
$ 47
22
19
156
311
555
783
762
$ 34
59
152
77
439
761
457
521
CONSUMPTION OF ELECTRICITY
Public utilities companies in six large cities of the
district report consum ption of electric current by
selected industrial custom ers in Novem ber as being
2.8 per cent less than in October and 19.2 per cent
greater than in November, 1939. Detailed figures
follow :
N ovem ber, 1940
N ov.,
N ov.,
Oct.,
(K .W .H .
in thous.)
N o. of
Custom • 1940
1940
K .W .H . K .W .H .
ers
1939
K .W .H .
4,600
2,365
11,157
3,371
864
48,099
70.,45 6
3,886
2,184
9,697
2,517
1,068
39,732
59,084
, , , 40
L ittle R ock.,. . . 35
82
L ouisville . .
, . 31
. . 20
. . . 125
333
4,022
2,386
11,462
3,148
863
50,637
72,518
compared w ith
Oct., 1940 N ov., 1939
+ 14.4%
— 0.9
— 2.7
+ 7.1
+ 0.1
— 5.0
— 2.8
+ 18.4%
+ 8.3
+ 15.1
+ 3 3 .9
— 19.1
+ 2 1 .1
+ 19.2
BANKING AND FINANCE
D uring the past th irty days demand for credit
continued at a som ew hat accelerated pace the im
provem ent which began early last fall. As was the
case during the initial stages of the upw ard trend,
the betterm ent was well distributed among all
classes of borrow ers. Seasonal requirem ents were
more in evidence than has been the case during the
past several years, and in addition there are increas
ing evidences of financial needs of interests under
taking defense contracts. D espite a substantial vol
ume of routine liquidation at both city and country
banks, new loans and renew als as a whole are well
above the volume of current collections. W ith open
ing of the tobacco m arkets for the 1940 crop in early
December, demands for funds to finance th at com
m odity have increased in the typical tobacco areas.
Influenced by the holiday season and generally
improved economic conditions, demand for currency
increased considerably, circulation of this bank
reaching a new record high as of mid-December.
Member Banks — T otal loans of weekly reporting
mem ber banks in the principal cities increased 4.6
per cent betw een Novem ber 20 and December 18,
and on the latter date were approxim ately 9.5 per
cent g reater than a year ago. On the other hand,
total investm ents during the four-week period
showed little change, and at its end were 0.05 per
cent sm aller than a year earlier. Gross deposits con
tinued the sharp upw ard sw ing which began in late
Septem ber and, at $1,207,182,000, on December 18
were the highest ever recorded.
Statem ent of the principal resource and liability
items of the reporting m em ber banks follow s:
Change from
N ov.
,
"
“ ec. 20,
20,
D
1940
1939
+ 1 1 ,0 8 4
+ 12,885
567
+ 1,750
+
48
—
719
424
+
217
+
660
+ 6,848
+
587
+ 1,0,88
Loans to b a n k s.
+
+ 10,432
Other lo a n s. . . .
+ 3,278
Treasury b ills. .
+ 9,451
+ 5,341
Treasury n o tes.,
— 17,133
+ 2,265
5,170
+ 3,377
—
3,787
— 7,262
+ 1 1 ,4 0 2
+ 2,062
106
+ 4,640
+
+ 12,529
+ 54,932
—
700
+ 2,0.02
11,521 — 3,497
U . S. Government d ep o sits.....................
— 6,492
Inter-bank deposits....................... ...........
. 395,486 + 5,197
+ 3 5 ,4 2 9
B orrow ings...................................................
300
+
300
+
*
Other than inter-bank and Government deposits, less cash items on
hand or in process of collection.
A bove figures are for 24 member banks in St. Louis, Louisville, M em
phis, L ittle Rock and E vansville. Their resources comprise approximately
75.0% of the resources of all member banks in this district.
(I n thousands of dollars)
Commercial, industrial, agrict
Open market paper...................
Loans to brokers and dealers.
D
ec. 18,
18.
Dec.
1940
.$219,156
.
10,233
4,283
3. 12,872
58,269
3,378
68,309
15,841
37,037
144,229
.
63,951
114,540
190,888
535,675
The aggregate am ount of savings deposits held
by selected m em ber banks on December 4 was a
shade higher than a m onth earlier and 0.3 per cent
less than on December 6, 1939.
Federal Reserve Operations — T he volume of the
m ajor operations of the Federal Reserve Bank of
St. Louis, during November, 1940, is indicated
below :
(Incl. Louisville, Memphis, L ittle Rock branches)
Checks (cash items) handled................................
Collections (non-cash item s) handled................
Transfers of fu nds.......................................................
Currency received and counted..............................
Coin received and counted.......................................
Rediscounts, advances and com m itm ents.........
N ew issues, redemptions, and exchanges of
securities as fiscal agent of U . S. Govt., etc.
Bills and securities in custody— coupons clipped
Pieces
Amounts
5,496,216
118,131
4,739
8,928,648
9,261,327
17
$1,365,957,364
37,152,030
372,741,187
30,497,489
979,922
455,000
12,774
10,,917
13,641,032
Changes in the principal assets and liabilities of
this bank appear in the following ta b le :
Dec. 17.
17,
(In thousands of dollars)
1940
Industrial advances under Sec. 13b............: >
20
Other advances and rediscounts..................
843
B ills bought (including participations) . . .
U . S. s e c u r itie s ....,............................................ 94,376
94*376
Total earning a s se ts ....................................... 95,239
Total
511,849
385,751
F. R. N otes in circu la tio n ............................. 218,637
Change from
N ov. 19,
■Dec.
18,
1939
1940.
_
1
-0488
+
713 +
-0-0 9,449
— 1,828 +
— 1,115 +
9,936
+ 3,422
— 3,592
+ 6,645
+
+
+
72,343
58,626
25,341
427
+
22
+
39
84.7%
+
0.2%
+
0.2%
Industrial commitments under Sec. 1 3 b ..
Ratio of reserve to deposit
Following are the rates of this bank for accom
modations under the Federal Reserve A ct:
Advances to banks, secured by direct obligations of
t per annum
the U nited States, under paragraph 13 of section 13. . 1
Advances to member banks, secured by direct obliga
tions of the U nited States or by such Government
guaranteed obligations as are eligible for collateral,
> per annum
under paragraph 8 of section 13....................................... . . . 1
Rediscounts and other advances to member banks un
der sections 13 and 13a.....................................................;. . . . l z/ 2 % per annum
Advances to member banks under section 1 0 ( b ) ................ 2 % per annum
Advances to individuals, firms, and corporations, other
than banks secured by direct obligations of the
>per annum
U nited States, under paragraph 13 of section 1 3 ........... 4
Industrial advances to member banks, nonmember
banks, and other financing institutions under sec
tion 13 b :
f 1Y-2 % to
(a) On portion for which such institution is obligated 12 % per annum
(b) On remaining p ortion — ■N o charge to financ
ing institution. Federal R eserve B ank w ill
retain interest collected from borrower.
Advances to established industrial or commercial n y 2 % to
\ 5 j/ 2 % per annum
businesses under section 13b.................................. ..
Commitments to member banks, nonmember banks,
and other financing institutions, under section 1 3 b . . . . l
% per annum
P rovid ed: that on commitments issued for periods of 90 days or less the
minimum charge shall be 54 of 1 % fla t; and further provided, that on
commitments for loans secured by assignm ent of “ Em ergency Plant Facil
ities Contract” with the U nited States Government, the rate may be as
low as 54 of 1% per annum.
The rates on industrial loans and commitments were changed to above
effective December 14.
Since the preceding issue of this review the F irst
Bank of Charlestown, Charlestown, Ind., and the
Bank of Maxville, Arnold, Mo., became members of
the Federal Reserve System.
Debits to Individual Accounts — The following
comparative table of debits to individual accounts
reflects spending trends in this d istric t:
N ov.,
1940
(In thousands
of dollars)
El D orado,. . .
Fort Smith, . .
5,739
14,436
2,267
“
48,745
Little R ock,. .
“
10,299
Pine B lu ff,. . .
Texarkana, Ark.-Tex.
8,278
E .S t.L .-N a t.S .Y .,Ill.
43,872
10,056
Q uincy,........... . . . . “
E vansville,. . .
Ind.
35,101
. . . K y . 183,849
Owensboro,. . .
6,939
Greenville,
6,619
, . .M o. 627,970
“
2,216
Springfield,. . .
16,018
213,841
(Completed December 23, 1940)
Ark.$
“
............. 1,236,245
Oct.,
1940
$
6,033
16,074
2,622
51,102
11,613
9,064
49,177
9,510
36,971
180,120
6,476
7,726
638,446
2,185
17,545
233,758
1,278,422
N ov.,
1939
$
5,237
11,997
2,959
39,150,
9,666
7,304
36,526
8,791
29,832
154,697
6,205
7,0,71
605,600
2,201
13,875
170,511
1,111,622
N ov .,’40 comp, with
Oct .,’40 N o v .,’39
__ 4.9% + 9.6%
— 10.2
+ 2 0 .3
— i 13.5
-2 3 .4
— 4.6
1-24.5
— 11.3
- 6.5
— 8.7
-13.3
— 10.8
-20.1
5.7
-14.4
+
5.1
-17.7
2.1
-18.8
+
7.1
-11.8
+
14.3
- 6.4
— 1.6
+ 3.7
1.4
\- 0.7
+
[-15.4
8.7
— 8.5
+ 2 5 .4
—
3.3
+ 11.2
Page 7
N A TIO N A L SUMMARY O F B U S IN E S S CO N D ITIO N S
B Y B O A R D O P G O V E R N O R S O F F E D E R A L R E S E R V E SY ST E M
IND U S TR IA L
Industrial activity continued at a high rate in November and the first half
of December and distribution of commodities increased considerably. Com
modity prices generally showed little change following earlier advances.
PRODUCTION
Production — Volume of industrial production, which usually declines at
this season, showed little change from October to November, and the Board’s
seasonally adjusted index rose 3 points further to 132 per cent of the 19351939 average. Reflecting work on a large volume of orders for national
defense purposes and for civilian needs, activity in the machinery and textile
industries continued to increase sharply. At machinery plants and at cotton
textile mills activity reached new high levels and at woolen mills output was
close to the previous peak reached early in 1937.
Index of physical volum e of production, adjusted for sea
sonal variation, 1935-1939 average = 100. B y months,
January, 1934, to November, 1940. L atest figure 132.
CONSTRUCTION
CONTRACTS
AWARDED
MILLIONS OF DOLLARS
MILLIONS OF DOLLARS
5 00 j
1934
1935
1936
1937
1938
1939
1940
Three-month m oving averages of F . W . D odge Corpora
tion data for value of contracts awarded in 37 Eastern
States, adjusted for seasonal variation. Latest figures
based on data for October and November and estimate for
December.
FREIGHT CAR LOADINGS
POINTS IN TOTAL INDEX
POINTS IN TOTAL INDEX
Index of total loadings of revenue freight, adjusted for sea
sonal variation, 1923-1925 average = 100. M iscellaneous,
coal, and all other expressed in terms of points in the
total index. B y months, January, 1934, to November, 1940.
MEMBER BANKS IN 101 LEADING CITIES
W ednesday figures, September 5, 1934, to December 11,
1940. Commercial loans based on new classification be
ginning May 19, 1937.
Page 8
Steel ingot production, which had been at about 94 per cent of capacity in
October, increased somewhat further in November and the first half of
December. Automobile production continued in unusually large volume,
amounting in November to around 500,000 cars and trucks. Retail sales of
new cars have been large this autumn and production has been maintained at
high levels in order to supply this demand and to build up dealers’ stocks.
Lumber production declined less than seasonally from October to November.
New orders for lumber continued somewhat above the current rate of pro
duction although below the high level of the three preceding months when
large orders were placed for cantonment construction. Lumber stocks at
mills continued to decline and were smaller than at any time in recent years.
Bituminous coal production increased considerably in November, following a
sharp decline in the previous month, while output of crude petroleum was
maintained at about the October rate. Production of most metals continued
in large volume.
Value of total construction contract awards declined less than seasonally
in November. In the 37 eastern States for which F. W. Dodge Corporation
data are available total contracts showed little change; awards for public
construction increased further and those for private work declined by some
what less than the usual seasonal amount. In the far western States contract
awards showed a decline from the unusually high level reached in October.
Distribution — Distribution of commodities to consumers increased con
siderably in November. Sales at department stores and mail-order houses
rose sharply, while variety store sales increased by about the usual seasonal
amount. In the first half of December there was the customary large
expansion in retail sales. Total freight-car loadings showed considerably less
than the usual seasonal decline in November and the early part of December.
Loadings of coal, which had been curtailed in October, increased sharply and
shipments of ore and of miscellaneous merchandise declined much less than
is usual at this time of the year.
W holesale Commodity Prices — Prices of basic commodities, which had
risen substantially since August, generally showed little change from the
middle of November to the middle of December. Prices of a few imported
commodities, particularly cocoa, burlap, and shellac, increased considerably
and there were small advances in steel scrap and some other domestic com
modities, while moderate declines were reported for such varied commodities
as lead, grains, and lard.
Bank Credit — Total loans and investments at reporting member banks in
101 leading cities have increased sharply since the beginning of October.
Commercial loans continued to increase in November and the first half of
December, and holdings of United States Government obligations at New
York City banks rose sharply. Principally as a result of the expansion of
bank loans and investments, Government expenditures, and foreign disburse
ments financed by additional gold imports, bank deposits increased to new
high levels. At the same time there has been a considerable increase in cur
rency in circulation partly in response to seasonal trade demands.
United States Government Security Prices — Prices of United States
Government securities continued to rise during the latter half of November
and the early part of December, and the 1960-65 bonds advanced to succes
sive new high levels, with a peak of about 111% on December 10. The yield
on this issue declined to a low point of 2.03 per cent on the latter date, but
increased slightly toward the middle of the month, reflecting some easing in
prices.
@FedFRASER