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MONTHLY REVIEW
Of Agricultural, Industrial, Trade and Financial
Conditions in the Eighth Federal Reserve District
RELEASED FOR PUBLICATION ON THE MORNING OF FEBRUARY 27, 1937
FEDERAL
RESERVE
District Summary
Jan. 1937 comp, with
Jan. 1936
Live Stock:
Dec. 1936
Receipts at National Stock Yards.....— 7.1%
Shipments from aforesaid Yards.......— 4.3
Production and Distribution:
Sales by mfrs. and wholesalers........ +28.4
Department store sales....................... —56.2
Car loadings......................................... — 0.5
Building and Construction:
n1,
. 1
( Number....—35.4
Bldg. permits, mcl. repairs 1 £ost
_871
Value construc. contracts awarded....+46.2
Miscellaneous:
n
•t i *
1
f Number......... .—18.7
Commercial failures { Liabiiities....... + 5.8
Consumption of electricity................. + 2.0
Debits to individual accounts............ —18.5
.
v
Member Banks (2 4 ):
- 5.0%
-16.8
+29.3
+ 9.7
+ 17.8
+
6.2
+ 9.9
+35.2
—26.0
—40.9
+32.8
+ 4.8
Feb. 10,*37 comp, with
Jan. 1 3 / 3 7 Feb. 12/36
Gross deposits.......................................— 0.5%
Loans.................................................... — 1.0
Investments......................................... .— 0.2
+12.6%
+ 22.6
+ 6.9
AUGED by available statistics, data and a
majority of measurements usually employed
in determining business changes, quite dis
tinctly improving tendencies developed in activities
in the Eighth District during January and the first
half of February. Demand for merchandise of all
descriptions continued on an extensive scale, and
while distribution through both wholesale and retail
channels in January showed about the average sea
sonal decline from December, the total for the
month was measurably larger than in January,
1936, also larger for that month in all years since
the predepression period. In a number of manu
facturing lines the steady expansion of recent
months was carried further forward. This was true
particularly of durable goods, and more especially
the iron and steel industry. The melt and deliveries
of pig iron to melters in this area during January
recorded the highest totals for any month since
1930, and the daily average during the first two
weeks of February exceeded that of the entire
month of January. There was a moderate decrease
in production of bituminous coal in fields of this
general area, due in part to disabilities occasioned
by the flood. For the same reason lumber output
G
BANK
OF
S T.
LOUIS
decreased moderately, but new orders and ship
ments continue well in excess of production. Con
sumption of electric power by industrial users in
the principal manufacturing centers, other than
those affected by floods, showed increases in Janu
ary over a month and a year earlier.
Without exception all wholesale lines investi
gated by this bank showed January sales larger
than a year ago, with particularly favorable exhibits
being made by boots and shoes, furniture, electrical
supplies, and dry goods. Generally moderate retail
stocks and the relatively early date of Easter had a
stimulating effect on ordering apparel, dry goods,
boots and shoes, and some other lines. There was a
moderate increase in employment during January,
and since the first of February the number of idle
workers has been reduced by settlement of labor
difficulties in the automotive industry, increased
schedules in iron and steel plants, and seasonal agri
cultural activities. The trend of wholesale prices
showed little change during the past thirty days,
but as of the week ended February 13 the Bureau of
Labor’s index was 5 per cent higher than a year
ago.
In January and February the most disastrous
flood of record occurred in the valley of the Ohio
River and its tributaries. The brunt of the inunda
tion was sustained by territory within the Eighth
District, mainly in the states of Kentucky, Indiana,
Missouri and Illinois. According to a compilation
made by the American National Red Cross, 216
counties were flooded in greater or lesser degree,
of which 135 wrere located in this district. Of the
1,099,384 persons whose homes were flooded, 766,752
were in the Eighth District. As yet no complete
survey has been made to determine actual losses
caused by the high water, but in this area unofficial
estimates run from $350,000,000 to as high as
$500,000,000, including all descriptions of property,
but excluding loss to business from disrupted trade
and lessened purchasing power. Rehabilitation work
commenced with the recession of the floods and has
made marked progress in both the cities and rural
areas. The fact that the floods came so early in the
Page 1
year is a saving factor in that the terrain in most of
the affected territory should be sufficiently dry in
time to permit of planting spring crops.
As measured by sales of department stores in
the leading cities, the volume of retail trade in
January was 56.2 per cent less than in December,
but 9.7 per cent greater than in January, 1936.
Combined sales of all wholesaling and jobbing firms
reporting to this bank in January were 28.4 per cent
and 29.3 per cent greater, respectively, than a month
and a year earlier. The value of permits let for new
construction in the principal cities in January was
92.5 per cent less than in December and 15.9
per cent smaller than in January a year ago. Con
struction contracts let in the Eighth District in
January were 46.2 per cent greater than in Decem
ber and 35.2 per cent larger than in January, 1936.
The movement of freight during January and
the first half of February by railroads operating in
this district, according to the reporting lines, was
in larger volume than in any similar period since
1931. As compared with a year ago there were
notable increases in the forest products, ore, mer
chandise L. C. L. and miscellaneous freight classi
fications and decreases in grain and grain products,
coal and coke. The relatively mild winter was
responsible for the smaller movement of fuels. In
addition to serious delays in the movement of
freight in the flooded areas, particularly at Ohio
River crossings, railroads that were affected sus
tained substantial damage to roadbeds and equip
ment. Tonnage handled by the Federal Barge Line
between St. Louis and New Orleans in January was
smaller by 24 per cent than in December and by 19
per cent than in January, 1936.
Reports relative to collections during the past
thirty days reflect spottiness and generally less
satisfactory results than during the preceding eight
een months. This was ascribed to effects of the
flood and interference with the usual facilities of
trade. Wholesalers in St. Louis and other large
distributing centers report February settlements in
relatively smaller volume than a year ago, with a
number of requests for extensions. Except in sec
tions affected by the high waters, retail payments
continue at recent high levels. Questionnaires ad
dressed to representative interests scattered through
the district show the following results:
Excellent
January,
1937......... 2.5%
December, 1936......... 6.1
January,
1936......... 1.3
Good
Fair
Poor
46.4%
60.6
45.0
40.6%
31.8
41.3
10.5%
1.5
12.4
Commercial failures in the Eighth Federal Re
serve District in January, according to Dun and
Page 2
Bradstreet, numbered 26, involving liabilities of
$238,000, as against 32 insolvencies in December
with liabilities of $225,000 and 35 defaults for a total
of $403,000 in January a year ago.
Detailed Survey
MANUFACTURING AND W H O LESALIN G
Net Sales
January, 1937
comp, with
Dec. 1936 Jan. 1936
+ 45.0 %
Boots and Shoes.................................. + 89.8 %
+ 15.1
Drugs and Chemicals......................... — 10.8
+ 14.6
+ 12.9
+59.0
Electrical Supplies.............................. — 52.2
+65.9
Furniture.............................................. — 11.4
Groceries........................ ...................... — 11.3
+ 4.3
Hardware............... .............................. — 2.5
+ 17.1
Lines of Commodities
All Above Lines..............................
+ 28.4
+29.3
Stocks
Jan. 31, 1937
comp, with
Jan. 31, 1936
— 15.0%
+ 31.7
+ 35.6
+38.1
+ 6.4
+ 5.8
+51.1
+ 23.1
Automobiles — Combined passenger car, truck
and taxicab production in the United States in Janu
ary was 379,843 against 498,721 in December, and
364,004 in January, 1936.
Boots and Shoes — Reversing the experience of
a year ago, January sales of the reporting interests,
as shown in the above table, recorded a substantial
gain over the same month a year earlier. The de
crease in January, 1936, as compared with January,
1935, was attributable to an extraordinarily heavy
volume of advance buying during the earlier period
in anticipation of price advances. The increase from
December to January was seasonal in character and
of about the average proportions. Reflecting the
relatively heavy manufacturing operations of the
past several months, stocks as of February 1 were
8.3 per cent greater than a month earlier, but 15 per
cent less than a year ago. In sympathy with raw
materials, the trend of prices was upward, with spe
cific advances announced by several interests on
certain of their products.
Clothing — January sales of the reporting firms
were about one-fourth smaller than in December,
but 7 per cent greater than the January, 1936, total.
Inventories continue to increase, stocks as of Febru
ary 1 being 26 and 19 per cent larger, respectively,
than a month and a year earlier. Advance ordering
of apparel for spring and early summer distribution
was reported in measurably larger volume than at
this time last year, or during the preceding several
seasons. The unusually mild winter, especially in
January and early February, has had a detrimental
effect on the movement of heavy weight clothing,
and clearance of goods in this category is expected
to be less thorough than a year ago.
Drugs and Chemicals — Heavy calls for reme
dial drugs from the flood areas and prevalence of
illness generally throughout the district were in
large measure accountable for the increase of 15
per cent in January sales of the reporting interests
over the same month a year ago. Demand for heavy
drugs and chemicals by the general manufacturing
trade was reported well in excess of the usual sea
sonal volume. Prices as a whole showed little
change during the past thirty days, but were con
siderably higher than at the same time last year.
Dry Goods — Sales of the reporting interests in
January, which showed an increase of 14.6 per cent
over the corresponding period a year earlier, were
the largest for any January, with the exception of
1934, since 1930. Retail stocks are in the main of
moderate size, and there is a general disposition to
replenish and fill out assortments in anticipation of
heavy spring and summer demands. The trend of
prices during the past thirty days was slightly up
ward. While no accurate estimate is available at
this time, losses of dry goods stocks due to the
floods were in heavy volume, particularly in Louis
ville, Evansville and Paducah.
Electrical Supplies — While showing more than
the ordinary seasonal decline from December to
January, sales of the reporting firms were 59 per
cent greater than in January last year and the largest
for the month since these records started in 1924.
In the yearly comparison improvement extended to
practically all lines. Orders booked during the first
half of February indicate an increase for the month
over a year earlier about equal to that achieved in
January.
Furniture — The steady increase in sales of
household furniture and furnishings, which has been
in effect for the past eighteen months or more, con
tinued during the opening month this year, and was
in a large measure accountable for the increase in
January sales over a year ago. The decrease from
December to January was seasonal in character, but
considerably smaller than the average during the
past decade. Reflecting the sharp upturn in lumber
and other raw materials, the trend of prices was
higher.
Groceries — January volume of the reporting
firms in this classification was considerably bol
stered by heavy calls for emergency supplies for the
flood areas. This condition has continued through
the first half of February. Routine business held up
well during January, and for the eighth consecutive
month showed an increase over the corresponding
month a year earlier. Inventories increased moder
ately between January 1 and February 1.
Hardware— Mild weather in January tended
to hold down sales of seasonal merchandise, but
demand for staple lines, including builders’ hard
ware and tools, paints and kindred commodities
increased. Recent advances in the price of steel,
lead, zinc and some other raw materials were re
flected in an upward trend in prices based on these
products.
Iron and Steel Products — The rate of activi
ties at iron and steel plants in the district was
stepped up further during January and the first half
of February. The usual seasonal recession concomi
tant with closing of plants for inventory and repairs
was little in evidence, a large majority of mills and
foundries having sufficient unfilled orders to war
rant continuous operations. Outstanding in the im
provement over the like period a year ago, and dur
ing the preceding several years, was the high rate
of production at steel casting plants, due in large
part to the heavy volume of orders received from
railroads and builders of freight cars. Deliveries of
sheets, plates, bars and other rolled steel products
are still backward, in some instances from two to
four weeks. In the immediate past there has been
some slowing down in activities at the stove plants,
occasioned by inability to secure deliveries of sheets.
Farm implement interests are for the most part
working on full time schedules with advance orders
as of February 1 the largest for that date since 1929.
January business of iron and steel warehouse and
jobbing interests was slightly larger than in Decem
ber and approximately 8 per cent in excess of the
volume in January, 1936. Since the second week in
February there has been a heavy call for a variety of
materials out of store for rehabilitation work in the
flood areas. With the exception of scrap iron and
steel, prices of both raw and finished materials were
unchanged as compared with the preceding month.
The upturn in scrap followed the steady and marked
advance which had been in effect during the preced
ing several months. Certain important grades, in
cluding heavy melting steel and malleable iron,
moved to the highest levels in more than a decade.
An exception to the general brisk demand was in the
case of building materials, particularly standard
structural shapes. Operations at steel plants in the
area producing steel ingots were at 82 per cent of
capacity, the highest point of the recovery period.
Shipments of pig iron to district melters in January
were approximately 6 per cent greater than in
December and the highest for the month since 1930.
For the entire country, production of pig iron in
January, according to the magazine “ Steel” totaled
3,219,741 tons, the best since May, 1930, and com
paring with 3,125,192 tons in December and 2,029,304 tons in January, 1936. Steel ingot production
in the United States in January totaled 4,736,697
Page 3
tons against 4,431,645 tons in December and 3,045,946 tons in January, 1936.
MINING
The usual seasonal influences, plus floods and
the unusually mild weather were reflected in a con
traction in output of bituminous coal during Janu
ary. At mines in fields of this general area produc
tion in January was smaller by 9 per cent than in
December and by 4 per cent than in January, 1936.
Estimated production of soft coal for the country
as a whole in January was 39,610,000 tons, which
compares with 44,487,000 tons lifted in December
and 39,330,000 tons in January, 1936. There was
one less working day in January this year than last.
At Illinois mines in January 5,279,062 tons were
produced, which compares with 5,733,619 tons in
December and 5,227,017 tons in January a year ago.
There were 159 mines in operation in January and
38,361 men on payrolls as against 170 active mines
and 38,295 operatives in December.
R E TA IL TRADE
Department Stores — The condition of retail
trade is reflected in the following comparative state
ments showing activities in the leading cities of the
district:
Stock
Net Sales
on Hand
January, 1937
Jan. 31, 1937
comp, with
comp, with
Dec. 1936
Jan. 1936 Jan. 31, 1936
+ 0.5%
— 3.4%
El Dorado, Ark............... — 51.7%
Ft. Smith, Ark................. — 62.3
+ 10.4
— 0.9
+ 5.2
+ 14.3
Little Rock, Ark............... — 63.7
Louisville, K y................... — 72.7
— 20.1
+ 11.0
Memphis, Tenn................. — 61.0
+ 8.4
+-10-9
+ 2.5
+ 25.4
Pine Bluff, Ark................ — 64.4
St. Louis, M o................... — 51.9
+13.7
+18.5
Springfield, M o................. — 59.3
+ 5.8
+ 6.3
All Other Cities............... — 64.3
+8.7
+ 2.4
8th F. R. District......... ....— 56.2
+ 9.7
+ 15.2
Stock
Turnover
Jan. 1, to
Jan. 31,
1937 1936
.21
.21
.19
.18
.19
.20
.22
.29
.25
.26
.22
.31
.30
.31
.17
.17
.21
.20
.27
.28
Percentage of collections in January to accounts
and notes receivable first day of January, 1937, by
cities:
Installment Excl. Instal.
Accounts
Accounts
El Dorado................ % ............ 67.3%
Fort Smith............................... 37.1
Little R ock....... 13.9 ............31.2
Louisville ........ 8.5 ........... 44.1
Memphis .......... 18.8 ............43.7
Installment Excl. Instal.
Accounts
Accounts
Pine Bluff ..............%............46.3%
Springfield ............................... 22.3
St. Louis............19.2 ............55.7
Other Cities.......16.0 ............47.5
8th F. R. Dist..l6.8 ........... 48.9
Specialty Stores — January results in men’s
furnishings and boot and shoe lines are shown in
the following table:
Stock
_______Net Sales_____
on Hand
January, 1937
Jan. 31, 1937
comp, with
comp, with
Dec. 1936
Jan. 1936 Jan. 31, 1936
Men’s Furnishings.......... .— 63.7%
— 6.3%
+ 2.3%
Boots and Shoes............... — 51.0
+15.7
+ 27.2
Stock
Turnover
Jan. 1, to
Jan. 31,
1937 1936
.17* .19
.41
.40
Percentage of collections in January to accounts
and notes receivable first day of January, 1937,
follow s:
Men’s Furnishings................. 31.1%
Page 4
Boots and Shoes........................35.1%
AGRICULTU RE
Generally throughout the Eighth District dur
ing the late fall and winter to mid-February weather
conditions have been unusually variable, but on the
whole favorable for crop development and all de
scriptions of agricultural operations. Precipitation
has been ample and well distributed, with the result
that in many sections, moisture deficiency resulting
from drouth in recent years, notably in 1936, has
to a considerable extent been made up. Except in
the areas affected by the severe floods of late Janu
ary and February, farm work is mainly up to the
seasonal schedule. Due to the auspicious weather
conditions in the early fall, abundant labor and the
stronger financial position of farmers, more ground
has been broken for cotton, rice and other field crops
than in a number of years. The condition of fall
sown grain crops is for the most part favorable,
there being a minimum of reports of winter kill.
The only damage of a serious nature was in the
flooded areas, but reports from a number of counties
affected by the high water indicate that the winter
wheat crop may be partly saved if average weather
conditions prevail to harvest.
The flood area was confined chiefly to the valley
of the Ohio River and its tributaries, the territory
above the confluence of the Mississippi and the Ohio
rivers being little affected. The situation in the
principal flood territory, however, was the worst
ever experienced, record high stages of water being
recorded at all stations from which reports are re
ceived by the U. S. Department of Agriculture
Weather Bureau. Destruction of farm equipment,
buildings, machinery, feed and fodder in many sec
tions was almost complete. Due to strenuous efforts
and timely warnings, the losses of livestock were
relatively light, conditions considered. The principal
needs of farmers in the flood sections are for emer
gency supplies of food, feeds and fodder to tempo
rarily carry on, and eventually, assistance in the
rehabilitation of their plants. Owing to earliness
of the floods, the soil should be sufficiently dry to
permit the sowing of spring crops. In the upper
regions of the most acutely affected areas, the
waters have drained rapidly, and rehabilitation work
has gotten well under way.
The U. S. Bureau of Agricultural Economics
reports that employment on farms of crop reporters
increased more than usual during January with
relatively mild weather prevailing east of the Mis
sissippi during the latter part of the month.
On February 1, total employment amounted to
272 persons per 100 farms, compared with 263 a
month earlier and 269 persons a year ago. Ordinar
ily, employment rises but little from its year-end
low point to February 1, and for the 5 years 1931-35
the average increase in this period has amounted
to only 4 persons per 100 farms.
Cotton — Preparations for the new crop, except
in the flood areas, are well along, owing to favora
ble conditions last fall. While the high water occa
sioned much suffering and property loss in certain
sections of the cotton area, the soil itself will be
greatly benefitted by the overflow; planters consider
it fortunate that the floods came early instead of
late in the season. Actual damage to cotton in
warehouses has been negligible, many thousands of
bales in the threatened area having been moved to
points of safety. Demand for raw cotton continued
active during the past thirty days and prices re
mained at or around the highest levels of the present
season. Both domestic and foreign mills apparently
continued to operate at a relatively high rate, with
domestic mill consumption ahead of that a year ago.
In the St. Louis market the middling grade ranged
from 13.10c to 13.50c per pound between January 15
and February 15, closing at 13.10c on the latest date,
which compares wT
ith 13.45c on January 15 and
11.65c on January 15, 1936. As indicating the rapid
movement of the crop, receipts at Arkansas and
Missouri compresses combined from August 1, 1936,
to February 5, 1937, totaled 1,301,583 bales, against
864,351 bales for the corresponding period a year
earlier. Stocks on hand as of February 5 totaled
428,057 bales against 525,293 bales on the same
date in 1936.
According to statistics compiled by the National
Fertilizer Association, farmers in states including
the Eighth District will use more fertilizer this
season than in either 1936 or 1935.
Livestock — Except in the flooded areas, where
more or less heavy losses of farm animals were sus
tained, the condition of livestock generally through
the district maintained the high average which char
acterized earlier stages of the season. During Janu
ary and early February, the livestock, and meat
trade was featured by declines ranging from 12 to
24 per cent in the wholesale prices of most cuts of
fresh pork, and little change in prices of beef, veal
and dressed lamb.
Receipts of cattle
ber and were smaller
ary receipts of hogs
year ago, but were
December.
declined slightly from Decem
than in January, 1936. Janu
showed little change from a
measurably smaller than in
The annual survey of the U. S. Department of
Agriculture disclosed only negligible changes in the
total number and value of all livestock on farms in
states including the Eighth District between Janu
ary 1, 1936 and 1937, but an increase of 3 per cent
in the number and 48 per cent in value on the open
ing day this year as compared with January 1, 1935.
The aggregate number of cattle, horses and mules,
sheep, and swine on the first day of this year was
33.928.000, with total farm value of $970,755,000,
which compares with 33,990,000 head, with farm
value of $969,408,000 a year earlier and 32,974,000
head, worth $657,147,000 on January 1, 1935.
In the 11 Corn Belt States the number of cattle
on feed on January 1, 1937, was 23 per cent smaller
than the number on feed a year earlier, according
to estimates of the Bureau of Agricultural Econom
ics. The number on feed January 1, this year, how
ever, was estimated to be about 10 per cent larger
than the number on feed January 1, 1935, following
the 1934 drouth. The number on feed on January
1, 1937, in the Western States was somewhat larger
than a year earlier and nearly twice as large as on
January 1, 1935.
Receipts and shipments at St. Louis as reported
by the National Stock Yards were as follow s:
Receipts
Jan.,
Dec.,
Jan.,
1937
1936
1936
Cattle and Calves..... 119,050 127,956 135,460
Hogs ...........................271,063 284,041 277,032
Horses and Mules..... 7,445
4,536
5,686
Sheep ............ ............. 42,020 56,728 44,581
______ Shipments________
Jan.,
Dec.,
Jan.,
1937
1936
1936
60,508 69,581 73,683
146,706 147,874 175,207
7,317
5,817
6,053
5,302
6,337
9,342
Totals..................... 439,578 473,261 462,759
219,833 229,609 264,285
Tobacco — Marketing of tobacco was seriously
interfered with by floods, and in Kentucky and
Tennessee a number of important markets sus
pended operations temporarily. Demand for all
grades continued active, and prices generally have
been maintained at, or around the high levels noted
earlier in the season. It is estimated that about
200.000.000 pounds of burley tobacco have been sold
In the eastern fired district fully 40 per cent of
the crop has been sold and in the western district
from 40 to 45 per cent. One sucker markets have
resumed selling and between 1,000,000 to 1,500,000
pounds have been disposed of.
Available information indicates considerable
damage to tobacco from the high water. In the main,
floods affected stocks in hands of manufacturers,
rather than producers and warehouses. While no
official estimates have been made it is believed losses
will amount to several millions of dollars. The loss
to one manufacturer alone is estimated at $1,000,000.
It is definitely known that losses were sustained by
all cigarette manufacturers in Louisville. One
authority estimates the loss of burley tobacco in
Page 5
Kentucky cities in the Ohio Valley at 25,000 to
50,000 hogsheads.
Efforts are being made to reclaim water-soaked
and damp tobacco. Certain experts believe such
leaf can be reclaimed and be serviceable as a lower
grade. Others, however, are of the opinion that
only a very small part of the damaged stocks can
be made useful except for making nicotine and other
by-products.
COMMODITY PRICES
Range of prices in the St. Louis market between
January 15, 1937, and February 15, 1937, with clos
ing quotations on the latter date and on February
15, 1936, follows:
High
Close
Feb. 15, 1937
Low
Wheat
*May ................... per bu..$l.33*4 $1.2356
*July ................... “
1.35
.99%
*Sept...................... "
1.12
1.0454
*No. 2 red winter “
1.4654 1.37
*No. 2 hard “
“
1.45
1.3454
Com
1.2 7 54 1.22*4
*May ................... “
*July ................... “
1.25*6 L1954
1.1754 1.H54
*Sept...................... “
*No. 2 Mixed .... “
1.16
1.1254
*No. 2 White .... “
1.17
1.1354
Oats
*No. 2 White .... “
.57
.53
Flour
Soft Patent....... per bbl. 7.00
5.95
Spring “ .......
“
8.60
7.95
Middling Cotton...per lb.
.1350 .1310
6.00
Hogs on hoof..... per cwt.10.65
^Nominal quotations.
$
1.33
1.35
1.12
1.46*4
1.4454
1.2656
1-25*6
1.14*6
1.1354
1.17
.5554
6.50@ 7.00
8.40@ 8.60
.1310
6.00@10.40
Feb. 15, 1936
$
1.02
.88%
.87%
1.0854
1.10
.6154
.62*4
.62*4
.6654
. 69 54
.33
5.30@ 6.00
6.90@ 7.05
.1145
9.15@11.10
TRANSPORTATION
Despite handicaps of flood conditions, transpor
tation statistics in the Eighth District covering
January and the first part of February indicate a
continuance of the heavy volume of freight and
passenger traffic which featured the closing months
of last year. The St. Louis Terminal Railway Asso
ciation, which handles interchanges for 28 connect
ing lines, interchanged 94,928 loads in January, the
largest number of any month in recent years with
the exception of December when 95,438 loads were
interchanged. In January, 1936, there were 80,558
loads handled. During the first nine days of Febru
ary the interchange amounted to 30,361 loads, as
against 28,708 loads during the corresponding inter
val in January and 23,662 loads during the first nine
days of February, 1936. Passenger traffic of the
reporting lines in January increased 21 per cent in
the number of passengers carried and 28 per cent
in revenue as compared with the same month a year
ago. The increase is seasonal in nature, but some
what above the average of recent years. Estimated
tonnage of the Federal Barge Line between St.
Louis and New Orleans in January was 79,000 tons,
against 103,455 tons in December and 97,697 tons
in January, 1936. Express business in this area in
January showed an increase of 5 per cent in volume
Page 6
of shipments handled and of 15 per cent in revenue
as compared with the same month last year. For the
first six weeks this year, or to February 6, loadings
of revenue freight for the country totaled 3,991,912
cars, against 3,596,239 cars for the corresponding
period in 1936 and 3,357,434 cars in 1935.
BUILDING
The dollar value of permits issued for new con
struction in the five largest cities of the district in
January was 92.4 per cent less than in December and
15.9 per cent smaller than the January, 1936, total.
According to statistics compiled by the F. W . Dodge
Corporation, construction contracts let in the Eighth
Federal Reserve District in January amounted to
$16,477,600, which compares with $11,268,300 in
December, and $12,183,762 in January, 1936.
Production of portland cement for the country
as a whole during 1936 totaled 111,815,000 barrels
against 76,472,000 barrels in 1935. Stock of finished
portland cement on hand at the end of 1936 was
22,842,000 barrels compared with 22,949,000 barrels
at the close of 1935.
Building figures for January follow :
New construction
Permits
Cost
1937
1936
1937
1936
Evansville ..
17
18
$ 109 $
15
Little Rock
10
38
44
15
Louisville ..
54
40
150
363
Memphis .... 150
62
132
24
St. Louis.... 122
104
189
264
Repairs, etc.
Permits
Cost
1937
1936
1937 1936
44
40
$ 35 $ 23
20
40
23
37
51
52
49
25
104
174
111
115
272
62
67
93
(Cost in
thousands)
Totals....
353
1936
December . 479
November . 477
1935
290
428
742
280
395
1936 1 1935
$8,274 ' $3,178
1,194
1,867
1936
501
600
1935
329
465
201
624
490
272
1936 1935
$ 344 $1,865
335
224
CONSUMPTION OF ELECTRICITY
Public utilities companies in five large cities of
the district report consumption of electric current
by selected industrial customers in January as being
2.0 per cent larger than in December and 32.8 per
cent more than in January, 1396. Detailed figures
follow :
Jan.,
(K .W .H . No. of
Dec.,
in thous.) Custom
1937
1936
ers
K .W .H . K .W .H .
Evansville .... 40
2,883
3,211
Little Rock.. 35
1,903
1,879
Louisville....... No figures because of flood
Memphis ..... 31
2,623
2,320
Pine Bluff.,,, 20
1,026
1,036
St. Louis
186
22,373
21,749
Totals..... 312
30,808
30,195
Jan. 1937
comp, with
Dec. 1936
— 10.1%
+ 1.3
conditions.
+13.1
— 1.0
+ 2.9
+
Jan.,
J a n .1937
1936 comp, with
Jan. 1936
K .W .H .
— 3.2%
2,978
+38.0
1,379
2.0
1,897
567
16,371
+ 38.3
+81.0
+ 36.7
23,192
+ 32.8
FLOOD CONDITIONS IN
EIGH TH FEDERAL RESERVE DISTRICT
Number of Counties
Refugees Total
Only
Affected
23
5
7
18
24
6
13
64
0
13
17
3
6
16
Flooded
..... 18
..... 11
..... 18
Kentucky ..... ....51
Mississippi .... ..... 13
..... 14
Tennessee .... .....10
40
175
Persons
Refugees under
whose homes
care in or out
are flooded
of camps
52,532
105,624
37,003
57,586
17,596
156,930
169,799
362,651
1,975
6,968
49,734
20,839
32,252
13,571
766,752
318,308
Note: Source of data from American Nat’l Red Cross as of Feb. 9, 1937.
M ONEY AND BANKING
Demand for credit from commercial and indus
trial sources in the Eighth District showed slightly
recessionary trends during the past thirty days as
contrasted with the preceding several months. H ow
ever, the volume of loans of commercial banks con
tinued measurably above that at the same period a
year and two years earlier. In the large cities
liquidation by mercantile interests has been on an
extensive scale, payments to a majority of banks
exceeding the aggregate of new loans and exten
sions. Liquidation at country banks was also in
considerable volume, and borrowing by those insti
tutions from their city correspondents is negligible.
As a result of flood conditions, banks in Louisville
and a number of other cities were closed from ten
days to two weeks. Upon resumption of normal
business, a majority of banks in the flood area re
ported they had received more money on deposit
than they paid.
Member Banks — Reporting member banks in
the principal cities of the district showed a decrease
in total loans of 1.0 per cent between January 13
and February 10, but on the latest date the total
was 22.6 per cent greater than a year earlier. Gross
deposits decreased slightly, but on February 10 were
12.7 per cent greater than on the corresponding
report date in 1936. Reserve balances continued to
move upward and at $140,206,000 on February 10
recorded an all time high, and an increase of 12.2
per cent over a year ago. Total investments showed
practically no change during the four week period.
A composite statement of the principal resource
and liability items of the reporting member banks is
given in the following comparative table:
Feb. 10,
(In thousands of dollars)
1937
Loans and discounts (incl. rediscounts) :
Secured by U. S. Gov’t obligations
and other stocks and bonds............. ,.$ 75,981
All other loans and discounts............. .. 203,146
Jan. 13,
1937
Feb. 12,
1936
$ 76,703
205,253
$ 65,819
161,887
Total loans and discounts..................... .. 279,127
Investments
U. S. Gov’t securities......................... .. 239,616
Other securities..................................... .. 170,362
281,956
227,706
238,491
172,421
224,975
158,462
Total investments..................................... .. 409,978
410,912
383,437
Demand deposits....................................... .. 776,015
Time deposits...........................................
783,182
185,346
676,385
178,801
Gross deposits....................................... .. 963,935
968,528
855,186
Reserve balances with F. R. Bank...... .. 140,206
Cash in vault.............................................
Bills payable and rediscounts with
Federal Reserve Bank.........................
130,678
12,126
124,977
11,100
Number of banks reporting...................
24
24
24
The total resources of these banks comprise approximately 62.8% of
all member banks in this district.
The aggregate amount of savings deposits held
by selected banks on February 3 was 1.5 per cent
greater than on January 6, and 7.4 per cent in excess
of the total on February 5, 1936.
Federal Reserve Operations — Changes in the
principal assets and liabilities of this bank appear
in the following table:
Feb. 19,
1937
(In thousands of dollars)
351
Industrial advances under Sec. 13b....... $
63
Other advances and rediscounts...............
86
Bills bought (including participations)..
U. S. Securities......................................... , 116,054
Jan. 19,
1937
$
409
139
86
116,119
Feb. 19,
1936
$
474
18
87
123,200
Total earning assets............................. 116,554
116,753
123,779
Total reserves ........................................... , 271,038
Total deposits ........................................... 205,583
F. R. Notes in circulation....................... , 177,906
273,916
205,867
179,444
220,106
176,962
161,019
1,295
1,313
2,009
Ratio of reserve to deposit
and F. R. Note liabilities................... . 70.7%
71.1%
65.1%
Industrial commitments under Sec. 13bi
Following is a complete schedule of rates of this
bank for accommodations under the Federal Re
serve A ct:
(1) Rediscounts and advances to member banks,
under Sections 13 and 13a..................... ........................2 % per annum
(2) Advances to member banks, under Sec. 10b............. 2]/2% per annum
(3) Rediscounts, purchases and advances to mem
ber banks, nonmember banks and other financ
ing institutions, under Section 13b:
(a) On portion for which financing insti
tution is obligated........................................... 3 x % per annum
/z
(b) On remaining portion.......................................... 4 % per annum
(4) Commitments, not exceeding six months, to
member banks, nonmember banks and other
financing institutions, to rediscount, purchase
2
or make advances, under Section 13b......................... V % flat
(5) Advances to established industrial or com
mercial businesses, under Section 13b........... 4% to 5]^ % per annum
(6) Advances to individuals, firms and corpora
tions, including nonmember banks, secured
by direct obligations of the United States,
under Section 13................................................................4 % per annum
Interest rates were for the most part unchanged
as compared with the preceding thirty days. At
downtown St. Louis banks as of the week ended
February 15, rates charged were as follows: Cus
tomers’ prime commercial paper, \ to 5 per cent;
y2
collateral loans, 2 to 6 per cent; loans secured by
warehouse receipts, \y2 to 5y2 per cent and cattle
loans Ay2 to 6 per cent.
Debits to Individual Accounts — The following
comparative table of debits to individual accounts
reflects spending trends in this district:
(In thousands
Jan.,
of dollars)
1937
East St. Louis and Natl.
Stock Yards, 111..$ 34,026
El Dorado, Ark..., .
4,438
Evansville, Ind....
31,013
Fort Smith, Ark...„ 12,634
Greenville, Miss.....
6,249
Helena, Ark...........
1,734
Little Rock, Ark.,.. 36,117
Louisville, K y..... ... 154,486
Memphis, Tenn... .. 138,361
Owensboro, Ky...,..
7,003
Pine Bluff, Ark...,
8,085
Quincy, 111............
7,464
. 549,520
Sedalia, M o............
2,544
Springfield, Mo...,.. 16,056
*Texarkana, Ark. ..
9,163
$ 37,067
5,020
36,960
13,700
8,048
2,652
42,845
205,613
171,073
7,087
9,563
9,397
673,620
2,776
15,992
9,371
$ 30,669
3,839
26,626
10,256
4,186
1,448
30,364
160,128
118,809
5,256
7,965
5,976
544,533
1,966
13,634
6,679
Totals........... 1,018,893
1,250,784
972,334
Dec.,
1936
Jan.,
1936
Jan. 1937 comp, with
Dec. 1936 Jan. 1936
— 8.2%
— 11.6
— 16.1
— 7.8
— 22.4
— 34.6
— 15.7
— 24.9
— 19.1
— 1.2
— 15.5
— 21.6
— 18.4
— 8.4
+ 0.4
— 2.2
+ 10.9%
+ 15.6
+ 16.5
+23.2
+49.3
+ 19.8
+ 18.9
— 3.5
+ 16.5
+33.2
+ 1.5
+24.9
+ 0.9
+ 29.4
+ 17.8
+37.2
— 18.5
+ 4.8
*Includes one bank in Texarkana, Texas, not in Eighth District.
Note — Above figures include total debits charged by banks to check
ing accounts, savings accounts, certificate of deposit accounts, and trust
accounts of individuals, firms, corporation and U. S. Government.
Charges to accounts of banks, debits in settlement of clearing house
balances, payments of cashier’ s checks, charges to expense and miscel
laneous accounts, corrections and similar charges, are not included.
(Completed February 25, 1937)
Page 7
NATIONAL SUMMARY OF BUSINESS CONDITIONS
B Y BO A R D OF G O VERN ORS O F F E D E R A L R E S E R V E SYSTEM
Production and Employment — Volume of industrial produc
tion, which usually increases at this time of year, declined from
December to January, and the Board’s seasonally adjusted index
was 115 per cent of the 1923-1925 average as compared with 121
in December and 114 in November. Steel production increased,
though by less than the usual seasonal amount, and was larger in
January than at any other time during the recovery period. In
the first three weeks of February output of steel increased some
what further. Output of automobiles was curtailed by strikes in
January and the first half of February, but after the strikes were
settled production rose sharply. At lumber mills there was a
considerable decrease in activity in January, reflecting in part the
IN D U S T R IA L
Distribution — Department store sales showed the usual sea
sonal decrease in January, while sales at variety stores and mail
order houses declined considerably more than is usual. Car-loadings of revenue freight also declined in January, reflecting in part
the effects of floods. There were substantial declines in ship
ments of forest products, coal, and miscellaneous freight.
Commodity Prices — The general level of wholesale commod
ity prices, which, according to the Bureau of Labor Statistics, had
advanced more than 5 per cent from the end of October to the
middle of January, showed little change from the middle of Janu
ary to the third week of February. Prices of agricultural commodi
ties declined slightly, while industrial commodities as a group
W H O LESALE
P R O D U C T IO N
1932
1933
1934
P R IC E S
1935
1936
1937
Index of physical volume of production, adjusted for seasonal variation, 1923-1925
average = 100.
B y months, January, 1929, through January, 1937. Latest figure January, 115.
Indexes compiled by the U. S. Bureau of Labor Statistics 1926 = 100.
By weeks, 1932 to date. Latest figures are for week ending February 20, 1937,
farm 91.4, foods 86.9, other 84.2.
effects of unusually cold weather in the western lumber regions.
Production of plate glass declined further in January, but toward
the end of the month the strikes which had restricted output
since October were settled. At textile mills activity declined from
the exceptionally high level reached in December, and in the
meatpacking industry there was also a decrease, while output
at shoe factories increased. Mineral production was smaller in
January than in December, reflecting a reduction in output of
coal. There was a further rise in output of crude petroleum.
Value of construction contracts awarded showed a consider
able rise in January, according to figures of the F. W. Dodge
Corporation, and was substantially larger than a year ago. The
most marked increases over December were in factory building,
which recently has been in larger volume than at any time since
1930, and in residential building. The increase in residential
building was largely in publicly-financed apartment construction.
continued to advance. There were substantial increases in nonferrous metals, lumber, and petroleum and smaller increases in
a wide variety of finished products, while prices of glass and
certain cotton textiles declined, following rapid increases in other
recent months.
Bank Credit — Total loans and investments of weekly report
ing member banks in leading cities declined somewhat further
during the four weeks ending February 17, reflecting principally
a decrease in holdings of United States Government obligations.
Commercial loans, following a seasonal decline in January, in
creased at reporting banks outside New York City and remained
practically unchanged in New York.
On January 31, the Board of Governors raised reserve re
quirements for member banks by 33T per cent, half of the in
/z
crease to become effective on March 1 and half on May 1. This
action completes the use of the Board’s authority under the law
FACTORY EMPLOYMENT
M E M B E R B A N K L O A N S A N D IN V E S T M E N T S
34
1935
1936
1937
’ 34
1935
1936
1937
Index of number employed, adjusted for seasonal variation,
1923-1925 average = 100.
By months, January, 1929, through January, 1937. Latest figure January, 98.8.
Wednesday figures for reporting member banks in 101 leading cities,
September 5, 1934, through February 17.
Loans on real estate and loans to banks excluded.
Factory employment and payrolls showed about the usual
seasonal decline between the middle of December and the middle
of January. Among the durable goods industries there were in
creases in employment at blast furnaces and steel mills and at
foundries and machine shops, while in the automobile industry
there was a considerable decline. In industries producing non
durable goods employment declined by less than the usual season
al amount, with increases at textile mills and in the chemical
industries, and seasonal reductions in working forces in most
other lines.
to raise reserve requirements. Excess reserves of member banks
showed little change in the five weeks ending February 24; there
was a further increase at New York City banks and a decline at
banks elsewhere.
The rate on bankers’ acceptances was raised 1/16 of 1 per cent
on February 1, following a similar increase on January 16. Mar
ket yields on short and medium term Treasury obligations also
increased slightly in January and the early part of February,
while yields on long-term Government bonds showed little change.
Page 8
@FedFRASER