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FEDERAL RESERVE BANK OF ST. LOUIS M ONTHLY REPORT ON GENERAL BUSINESS AND AGRICULTURAL CONDITIONS IN FEDERAL RESERVE DISTRICT No. 8 RELEASED FOR PUBLICATION OH AND AFTER THE MORNING OF JANUARY 27, 1921 W ILLIAM McC. MARTIN, CHAIRM AN OF TH E BOARD AND FEDERAL RESERVE AGENT Q O M K improvement in genera! business conditions has taken place during the past thirty days as contrasted with the similar period immediately preceding. The betterment has been accompanied by quite a marked change in senti ment among the business community, there being much less pessimism and considerably more optimism expressed on all sides. This reversed psychology is based on the opening up of scat tered buying, not particularly noteworthy in volume, but of a character indicating that stocks of merchandise have reached a point where they must be replenished and that a good part of the war inflation has been absorbed by the level of pnees. In lines where the readjustment has made greatest progress, buying is heaviest. The public is in need of goods, and is more disposed to fill !ts requirements than was the case during the closing months of last year. In a number of im portant lines there seems to be a greater degree of stability, deflation having gone sufficiently far to restore confidence in future values. This has re sulted in the placing of some fair orders by retail merchants, and wholesalers have also begun to build up their stocks. Most of the buying, how ever, is for immediate delivery, there being relat!ve!y little done in the way of future commit ment. Ultra caution is still the dominating feature among distributors of merchandise, and ultimate consumers have relaxed their recent regime of economy only to the extent of taking what they are obliged to have, or what they may acquire at very evidently reduced prices. Generally the holiday trade was moderately satisfactory only. While the volume exceeded ex pectations in many instances, it did not aggregate the totals of former years, and was considerably under that of 1919. This was true especially in the rura! sections, where the decline in prices of w m products and unsatisfactory marketing con ditions necessitated revisions of spending pro grams. Great quantities of goods were moved, how ever, and the opening of the new year found stocks ^n much better shape than was thought possible two months ago. of the most favorable factors noted dur ing the period under review was the stiffening in markets for several important agricultural pro ducts. Wheat had an excellent advance, and corn pnees, while closing lower than at the end of the preceding thirty days, fluctuated to higher levels t*ctween the opening and Anal dates. Cotton was Rrmcr, and displayed evidence of being in better demand, though the movement into consumptive channels is still subnormal. Advices from all sec tions of the district, with the exception of the typ ically tobacco growing areas, indicate that agri culturists are becoming accustomed to changed price conditions, and are gradually abandoning their determination to hold their products. AH strong spots in the markets for the several staples are meeting heavier offerings from the country, and farmers are devoting the proceeds to liquidat ing their indebtedness. As against these favorable developments may be set a rather sharp increase in unemployment throughout the district. Closing down of mills, fac tories. and foundries and the reduction of office and sales forces by numerous interests have resulted in the release of thousands of workers. These manifestations are most acute in the centers of great population, though they arc also present in smaller communities. State and Federal labor commissions and agencies note a return flow of labor from the city to the farms. A summary of employment and other labor conditions in Arkan sas made by the Federal-State Employment Ser vice at Little Rock develops facts which are typi cal of the districts as a whole. In this survey 842 firms and other business interests were investi gated, and on October 15 these interests employed 35,488 persons. Since that date 12,600 of these workers have been dismissed, and in addition approximately 10,000 of those remaining have been affected by wage reductions. Virtually all industries in the state, other than agriculture, were represented in the investigation. Replies to questionaires addressed to manu facturers, wholesalers and retailers through the district show heavily reduced stocks as compared both with the preceding month and the correspond ing period a year ago. While the period of inven tory taking had not been completed in some instances, a large majority of those reporting bear evidence that liquidation has continued to make notable progress. Among the other data included in the replies were accounts of further price reduc tions, though more lines reported no change in this respect than at any time since the retrograde movement was inaugurated last summer. Under some general classifications, such as drygoods, drugs and chemicals, and clothing it was related that certain items had sustained further declines, others held steady with the preceding month, while a few recorded slight advances. Throughout the past thirty days the gram markets were subject to frequent and broad fluctua tions, the character of which reflected unusuaHy heavy speculative activity. Receipts of wheat here in December showed an increase of 1,590,523 bushels, while flour arrivals decreased 247,523 bar rels as compared with the same month in 1919. Corn receipts fell off about 1,000,000 bushels and oats 958,000 bushels. A comparison of prices of typi cal articles between December 15 and January 15 shows the following changes: March wheat, 13%c higher; May wheat, 13%c higher; May corn, %c higher; July corn, %c higher; May oats, %c lower; No. 2 red winter wheat, steady; No. 2 hard wheat 6c higher; No. 2 com, & lower; No. 2 white com, lc lower; No. 2 white oats, 2c !ower; Soft patent flour, 15c lower to 50c higher; Spring patent flour, 55c to $1.25 higher. The trend of fuel prices continues downward, and there are ample supplies of both coa! and coke for all purposes. A heavy slump in the demand for steaming coal is accounted for by closing down of industrial plants. Domestic requirements have been well taken care of, and in a number of localities sur plus supplies are reported. In soft coal producing areas the new year opened with car and labor sup ply abundant, and production limited chiefly by demand. Total production of bituminous coa! in 1920 was 556,563,000 tons, against 458,063,000 tons in 1919 and 579,386,000 tons in 1918. Prices of coa! to ultimate consumers have been reduced slight!) in St. Louis and other large cities of the district. Recent declines in metallurgical coke prices have failed to stimulate business, future orders in that commodity being the smallest in recent years for this particular season. Transportation companies reported a rather heavy falling off in freight offerings during the month of December, but a slight improvement dur ing the first two weeks of January. Passenger trafRc is holding up fairly well, nothing like the decline in volume appearing in this department that is noted in freight. Approximately 56 per cent of the freight cars reaching terminal tracks in St. Louis, the leading gateway of the district, were empties, against 30 per cent for the corresponding period a year ago, and about 20 per cent at the height of the movement last spring. Some idea of the decreased activity in general transportation can be had from the statement that now there are in the country from 250,000 to 300,000 idle cars, while at the same time last year there was a shortage of approximately the same amount of equipment. Business of western and southwestern roads has been assisted during the past ten days by a freer movement of grain and cotton. For the most part collections continue slow, though some notable exceptions to this rule are reported. Percentage of outstandings with some houses has been materially lowered, while with others it has gone up. There are complaints relative to backward payments in the South, where mer chants have been obliged to carry their customers much longer than usual, due to unsatisfactory mar keting conditions of cotton, rice, tobacco and lum ber. In the grain country and areas of diversified crop production, banks report that loans are being taken up and merchants have considerably reduced their indebtedness. Credits based on live stock are being liquidated very s!owly. Great diversity exists in reports of retail intersts canvassed, but on the whole they have been getting in their money in good shape since the first of the year. Commercial fai!ures in the Eighth Federal Reserve District during December, 1920, according to Dun's were 104, involving liabilities of $3,030,670, against 22 in December, 1919, with liabilities of $554,848. In November last year there were 58 fail ures involving $829,889 and in October 47 failures with liabilities of $1,280,507. During the past two weeks there has been a decided turn for the better in the bond and general investment market. Trust companies, banks ana brokerage houses report a heavier volume of sales and more satisfactory buying than in months. Temporary stimulation was given by w January I interest and dividend disbursements, bu a more substantia! and permanent incentive to investment was found in the goodly recoverym !istings on the New York Stock Exchange. 1 demand for high grade municipals has been parti cularly brisk, with the supply of certain grades an issues being scarce. More interest is being manfested in rai!road bonds. The per capita circulation of the on January 1 was $59.12, against $59.41 on Dec ber 1, 1920 and $55.89 on January 1, 1920. MANUFACTURING AND W H OLESALE The closing weeks of December brought little stocks. This is especially true in tc*t*^S\?l?th* !& change in the condition of extreme apathy existing shoes, groceries and furniture, in a!! of w " " ? .. m manufacturing and wholesale, interests reporting readjustment has progressed to consiae for the most part indicating that their business was lengths. Manufacturers report that white ^ at the low ebb of the downward movement. Since not speculating in raw materials, even 'n ^ ^ the first of January, however, buying has opened have worked to the lowest !eve!s, they arc up m fair shape, collections have improved, and the sufHcient for immediate requirements and genera! aspect of things is more roseate. Many orders for their products recently placed wholesale houses dispatched their selling forces on enable them to keep operating at their presen Pj^ the road, and these salesmen have been sending in for some weeks to come. In the metal hnes, fair orders from all sections of the district. Some is, those based on iron and steel, few orders for forward delivery have been booked raw materials has not kept pace with other co . but virtually all transactions thus far reported are dities, and many important plants have c . ^ for immediate shipment. Business has been placed down. Great uncertainty relative to the by the wholesalers and jobbers, and for the Srst of pig iron exists, and is holding back large , time in several months there is a disposition to tions contingent upon the stability of that **** ^ ^ take advantage of the reduced prices to lay in The past thirty days have witnessed a very *** factory decrease in the number of cancellations and returned goods. This is attributed partly to the fact that there were fewer orders open, but is due also in a large measure to greater willingness on the part of merchants to accept the goods engaged. Incidentally recent experiences of manufacturers and wholesalers in the matter of cancellations have resulted in the decision of many important interests to revise their credit policies in the direction of closer datings and less flexible privilege to their customers. Boots and Shoes— Sales of reporting houses for December show radical declines under the same month in 1919, and shipments decreased from 28 to 42 per cent. Since January 1, however, sales have picked up, two leading manufacturers reporting a slight increase over the same time last year, while others show unchanged to slightly lower averages. Plant operation in this district during the past month was approximately 50 per cent of capacity, against an estimate of 30 per cent of capacity for the entire United States. No further price reductions occurred after those announced December 10. The trend of raw materials continues downward, with the exception of calfskins, which have reacted slight ly upward from the recent low mark. Sole leather is weak, but general leather stocks are not heavy. Traveling salesmen, started out on January 3, send in accounts of improved sentiment in their several territories, and fair buying for immediate needs. Clothing— Goods which are usually sold in October and November are now being purchased conservatively, according to reporting firms. The recent cold snap helped the movement of overcoats and heavy suitings and underwear, and resulted in belated calls for this variety of goods. The genera! run of factories have made up virtually nothing, except on orders and declare they will continue to pursue this policy through the balance of the sea son. Collections are fair to good. Sales and ship ments of hat distributors in December ranged from 30 to 67% per cent under the corresponding period a year ago. Electrical Supplies— There is a distinctly bet ter inquiry for electrical products of all sorts than existed thirty days ago. Partial resumption by automobile plants which had been shut down has helped manufacturers producing automotive equip ment. The volume of business in December, how ever, shows a heavy decline as contrasted with the same month in 1919. Collections are reported fair. Iron and Steel Products— No change worthy of note has taken place with industries under this head. Numerous plants have been closed down, or are operating on largely reduced schedules. Buyers ^re holding oil awaiting readjustment of prices. ne demand for building materials is almost at a standstill, and the same is true of castings of all sorts. Warehousemen report augmenting stocks. 1ne inquiry for tubular goods, and genera! supplies rom the oil fields has fallen off materially. Stove makers report further cancellations and are carry ing large stocks in their warehouses. Farm imple ment manufacturers and distributors complain of ^ck of demand for their products, especially in the States. Prices in this particular line are R + tf?"* ^ higher than last year, though to 10 per cent under the high !eve! reached in . 1920. Farmers are clamoring for still further reduc tions. The leading interest has cut its prices, but as yet this change has not been passed on to the ultimate consumer. Chaotic conditions relative to prices exist in the pig iron market. Furnace inter ests are wide apart in their asking prices, and resale tonnages have been placed at vastly lower figures than those quoted by the iron masters. Buying of raw material has been at a standstill in this district for the past month or six weeks. Hardware— Interests reporting show decreases in sales during December ranging from 20 to 65.9 per cent under the corresponding period in 1919. Some goods are holding steady, but generally through the line the trend is downward, prices averaging 5 to 10 per cent lower than thirty days ago. Some improvement in buying has developed since January 1, but the purchases are confined to immediate needs, no forward orders to speak of having been placed. Collections have picked up since the first of the year, and are described as fair to good. Flour— For the first time in many weeks mil lers report signs of revival in their business. Sup plies with jobbers, dealers, retailers and ultimate consumers have dwindled to such attenuated pro portions that buying can no longer be postponed. Prices have fluctuated considerably during the month, with the trend upward, principally in sym pathy with the advance in wheat futures. Country mills are busier, relatively, than the larger city plants, which fact is accounted for by depleted sup plies, and the fact that country millers sell their product locally, and are not affected by the condi tion of the export trade. Foreign buying continues light, recent inquiries abroad by mills hereabout bringing very disappointing replies. Wage read justments have taken place in this industry, and mill operation in the district is only about 50 to 60 per cent of capacity. Candy— Stocks in retailers' hands have been fairly well liquidated, and buying on a limited scale has been resumed after several weeks of almost absolute quiescence. December sales of reporting interests show decreases of from 30 to 79.2 per cent under the same month in 1919. The small showing made in December was composed largely of pur chases by retailers, jobbers having done virtually nothing. Prices of the principal raw materials have been pretty well readjusted, showing declines of 25 to 50 per cent from the peak. A fair business in specialties and Easter goods is reported, but staple lines are moving slowly. Collections, except in the South and Southwest, are mainly fair. Drugs and Chemicals— December results in this line show decreases of 5 to 18 per cent in total volume of business as contrasted with December, 1919. The first weeks of January, however, present a better showing, with accounts of steady volume to slight gains over the same time last year. Prices of many chemicals are lower, including coal tar products, narcotics, salicylates, bromides, epsom salts and carbolic acid. The arrival in increasing quantities of drugs from Germany is affecting val ues. On the other hand wood products and pro prietary medicines hold steady, with some few advances. Collections are fair to good. Small stocks in the hands of retail druggists and seasonal requirements are helping business. Cosmetics con tinue in excellent demand and Arm. Labor effi ciency has increased, one typical interest reporting a saving in operating expense of 15 per cent due to that feature. Woodenware— Heavy declines in business were reported for the month of December, the highest being 60 per cent and the lowest 36% per cent. Unfilled orders have been exhausted, and new busi ness is being placed haltingly and on an absolute requirement basis. Prices fell on an average of 20 per cent during the period under review, and are now approximately 20 per cent under the corres ponding time in 1920. Working forces in manufac turing plants have been curtailed. Wages were the same at the close as the beginning of the month, but are from 10 to 20 per cent under last year. Lumber— As compared with a month ago there is a distinctly better feeling in the trade, despite the fact that prices in most commercial species have worked to a considerably lower point during the period. Within the last few days considerable buy ing activity has developed in yellow pine, the demand being principally from the smaller centers in the central and middle Western States. Resump tion of building is impeded in the larger cities by the high price of labor and building materials other than lumber. The demand for structural lumber will be contingent upon a change in this situation. Aside from some demand for low grades from box makers, hardwoods are inactive, but somewhat greater feeling of confidence prevails in the trade. The upturn in British exchange is expected to im prove the long-dormant export demand. During the two weeks holiday period, lumber production in this district probably did not exceed 10 per cent of nor mal. For the month under review the average will approximate 25 to 30 per cent, output being greatly restricted in all sections. Wages have been sharply -fduced, and adjustment is still in progress. Furniture— Manufacturers and jobbers in this district report little change for the better in their business. Buyers who had been holding off await ing results of the great sales at Grand Rapids and Chicago in early January were for the most part displeased with the reductions developing in those gatherings, though they represented cuts of from 10 to 25 per cent in the extremes. Orders are con fined to immediate requirements, no forward busi ness being placed. Failure of business to material ize has resulted in wholesale closing of plants throughout the district. Several of the leading fac tories, however, have specified their intention of resuming operation late in January or in early Fdh ruary. Raw material prices remain about as they were thirty days ago, but certain articles, notably glass, are accumulating. Collections are poor to fair. Fire Clay Products— Quietness in the building industry, and the general blowing out of furnace stacks have adversely affected this line. Plant oper ation has been further curtailed, and in an effort to stimulate buying, some price reductions have been put into effect. Labor is plentiful and generally reported more efficient. The demand for cement holds up well, with prices very firm. Requirements for road building are absorbing the full product of plants in this district. Miscellaneous— In diversified lines, such as cooperage, rope, brooms and brushes, stationery, paper, glass, saddlery and office supplies December results were disappointing as compared with the same month in 1919. Some astonishingly heavy declines are disclosed in replies to questionnaires sent out to these interests. As in the larger lines, however, there is a distinct improvement m sentiment and volume of sales since January 1. 1" a number of notable instances stocks are at a low ebb. Collections vary from poor to good. RETAIL The chief feature in the retail division of dis tribution during the past thirty days was the holi day trade, accounts of which develop much variety. In some entire sections of the district the average was disappointing, while in other sections certain stores did a satisfactory business and others com plain of poor response to their efforts. Prior to Christmas there were many price reductions, main ly of the specialized and advertised sort, and since that time additional cuts have been made. On the whole, however, readjustment among retailers has not been as thorough as with the primary stages of merchandising. The public is quite as discriminat ing as heretofore, but is purchasing where prices seem to square with its ideas of cheapness. This is particularly true in clothing, boots and shoes, hard ware, and other goods for personal consumption. From scattered parts of the district come accounts of reductions in the price of bread, milk and grocer ies, but the 5-cent loaf and pre-war dairy prices have not appeared anywhere. Jewelers report that their December sales, while vastly under those of the preceding year, were still fair and larger than those in 1918. Since the first of the year sales in this line have slumped in a greater degree than be accounted for by seasonal change, and tions are unsatisfactory. Automobile dealers that there has been a slight improvement m t business since the last issue ol this * accessory market is displaying evidences of Me the first time in several months. More weather has stimulated the m o v e m e n t of typMB*y winter goods, though considerable is still left to desired in that respect. Country merchants m cotton and tobacco areas complain of slow j Farmers are selling their products slowly# a many are asking for extended and increased cr In the large cities unemployment has had effect on retail activities, but hardly to the . which might be expected from published ^ ^ on persons out of work. Places of investigated show for the most part receipts during the past thirty days, but part ol gain is doubtless due to holiday gaiety. ^ ^ first time in 1920 the department stores of tne trict showed an average decrease in net s a ie s^ December, the actual composite being 161 per eta* under the same month in 1919. AGRICULTURE More seasonable winter weather has prevailed throughout the district during the past three weeks. Temperatures have been fairly low, and snowfall more in evidence than ear!ier in the season. On the whole the condition of winter wheat is fair to good, the crop having been benefited by the snow blanket. Thus far there have been fewer complaints than usual of damage from inclement weather, alter nate freezing and thawing, etc. To the South early sown fields were affording good pasturage up until the recent cold snap. Reports from scattered sec tions of the wheat territory indicate a disposition on the part of farmers to sell wheat a bit more free ly. Some damage from Hy is reported from Illinois and Indiana. Slightly more than usual acreage of fall oats has been sown in some sections to the South, and the crop is reported as making generally good progress. Latest reports on cotton ginned about agree with the Government's forecast of the total expected yield. Due to favorable weather and a slight stiffening in price, more cotton has been picked during the last two weeks. Belated picking has also been stimulated by a temporary market for weather-stained cotton. Swelling of fruit buds in the South, which had caused apprehension among orchardists, has been checked by lower tempera tures. Conditions in the tobacco sections continue extremely unsatisfactory.. Farmers are unwilling to accept prices offered, claiming that they are not sufficient to cover costs of production. As as result few markets are being opened, and farmers are agi tating to hold last year's crop and plant none this year. The best grades are selling at reasonably fair prices, while the inferior grades, of which the crop is largely composed, are bringing unusually low figures. The condition of live stock is generally good, due to the mild winter and abundant feed. Barring a few cases of hog cholera, very little dis ease is reported. Recent shipments of live stock to market have been on a massive scale. The following table, compiled from commercial sources for the Government market report, shows the cotton movement from August 1 to December 31: BALES 1919 3,802,141 1,548,452 4,232,326 1,355,312 6,599,022 1,414,822 4,609,064 1920 Port Receipts................................................................................................... .3,432,216 Port Stocks.......................................................................................................1,454,308 Interior Receipts.............................................................................. ...... - ...... 4,051,180 Interior Stocks................................................................................................. 1,734,703 Into Sight........................................................ .......... .....................................6,103,731 Northern Spinners' Takings........................... - _________ _______________ 768,486 World's Visible Supply of American Cotton................................................. 4,846,155 Range of prices on typical products in the St. Louis grain market between December IS, 1920, and January 15, 1921, with closing quotations on each of these dates: Close December 15 March wheat.................................. $*" 1.63% May wheat ............................ 1.56 May corn __________________ .71 @ He .71%c corn., ay oats.. .48Rc No. 2 red winter wheat.. 2.02 No. 2 hard wheat........... 1.75 No. 2 corn 72c No. 2 white corn 74c No 2 white oats ______________ 49c Flour: Soft patents........................ 8.90 @ 10.00 Flour: Spring patents___________ 8.75 H 1.77 77c .77%c .51%c & 2.12 1.87 .75c 77c .50c 10.50 10.60 Low $1.61 1.54 .69%c .70%c Close January 15 1.76% 1 .68 % .71%c .72%c .46%c .47%c 1.89 1.75 68c 71c .47c 8.90 8.50 2.02 800 9.20 1.81 .68c .73c .47c 8.50 9.50 Note: December wheat closed at $1.80; December com at 70%c and December oats at 48c. LABOR Growth of unemployment in the district is embracing more general lines. The past thirty days, according to reports of State and Federal labor commissioners, have developed a greater surplus of workers than any like period since the commenceent of the war in the summer of 1914. Typically manufacturing centers are affected to a greater ex tent than other communities. Among the lines in which there is most unemployment may be men tioned iron and steel, automobiles, shoes, furniture, clothing and lumber. Transportation companies report a large surplus of skilled and unskilled work ers. Conditions considered, wages have held fairly steady. BUILDING A heavy slump in the number of building per^ dollar values involved is shown in reports ? M **"*& cities of the district for December. Viry nothing in the way of new construction Is being undertaken at the moment. Aside from lum ber, building materials are about as high as ever, aftd labor costs remain unchanged. Scarce and high credits n t also acting as a deterrent to this variety of investment. Road construction work continues on a large scale, and recent bond issues and appro- priations for hignways assure a continuation of this activity for an indefinite period. Comparative figures for December in leading cities of the district follow : 1920 D E C EM B ER 1919 New Construction________________Repairs, etc._________ New Construction & Repairs, etc. Permits Cost Permits Cost Permits Cost St. Louis.................................. 186 $285,040 303 $239,445 434 $692,725 Louisville ................................ 36 174,350 63 27,600 112 302,050 Memphis .................................. 136 108,522 24 13,865 117 1,003,750 Little Rock............................... 25 6,020 90 60,629 95 243,420 Evansville ................................ 27 49,540 9 4,800 ........ PO STAL RECEIPTS Postal business in this district, as indicated by receipts of the four principal cities, for the final quarter of 1920, show fair gains over the preceding quarter and corresponding period in 1919. Comparative figures for three periods mentioned follow: Quarter Ended December 31 1920 St. Louis................................................................................ $2,366,665.31 Memphis.................................................................................. 390,855.83 Little Rock............................................................................. 185,503.81 Evansville.............................................................................. 110,787.03 Quarter Ended September 30 1920 $1,999,150.90 139,577.61 174,233.62 106,450.75 Quarter Ended December 31 1919 $2,275,251.44 367,871.55 177,757.40 103,181.31 L IV E STOCK The summary of receipts at the St. Louis National Stock Yards in 1920 shows the following: Cattle, 974,416 head; calves, 279,134; hogs, 3,398,940; sheep, 604,769; horses and mules, 141,230. These figures indicate a decrease in all animals except calves as compared with the year before, but the showing was still a good one, as only during three preceding years were the 1920 totals exceeded. The past month was marked by rather broad fluctuations in prices of cattle, hogs and sheep, but the average shows very little change from the pre ceding month. During Christmas week some fancy cattle were offered, but the quality generally was inferior. For hogs the highest price paid was $11.10, and pigs went as high as $11.40. The past two weeks was marked by the heaviest run of hogs in any like period for more than two years. The first shipments for the season of Colorado pea-fed lambs are beginning to arrive. As reported by the St. Louis National Stock Yards, receipts and shipments of live stock at St. Louis in December, with comparisons for December, 1919, were as follows: Cattle & Calves 1920 1919 Receipts ..................... 81,263 142,158 39,340 Shipments ................39,336 Hogs 1920 1919 357,207 442,229 202,896 184,319 Sheep 1919 1920 66,154 47,252 10,776 10,556 Horses & Mules 1919 1920 18,961 3,096 19,979 3,546 CO M M O D ITY M O V E M E N T Receipts and shipments of important commodities at St. Louis during December, 1920 and 1919 and November, 1920, as reported by the Merchants' Exchange were as follows: _____________RECEIPTS Nov. 1920 !?< ^ , Dec. 1920 Ftour, barrels........................... 284,320 291,730 Wheat, bushets......................... 3,720,918 3,320,730 Corn, bushels-------------- ---------1,483,335 881,400 Oats, bushels------------------------1,868,000 1,918,000 Lead, pigs.................................. 240,520 214,080 Ztnc and Spetter, stabs............ 420,750 408,560 Lumber, cars............................. 11271 11,085 Meats, pounds...........................5,054^300 5.742.500 Fresh Beef, pounds..................1,354,400 796,500 Lard, pounds.............................1,613,000 1,202,400 Hides, pounds.......................... .3,276,400 2.275.500 Dec. 1919 532,030 1,770,395 2.441.400 2,624,000 335,940 363,190 13,249 4.304.400 1,058,600 2.916.900 1.810.900 Dec. 1920 325,410 2,266,130 515,530 1,328,510 61,250 435,350 7,639 23,730,100 23,994,600 6,463,700 5,508,600 S H IP M ENTS_________. Dec. 1919 Nov. 1920 602,765 352,910 1,877,170 1,762,460 1,454,995 621,600 1,746,195 1,659,080 236,880 94,170 729,510 617,840 10,056 8,021 23.452.300 25,581,000 28.771.300 24,748,400 7,528,700 5.418,100 5,312,800 6,056,500 F IN A N C IA L Generally speaking the banking position of the converted into cash. Proceeds of these s? district has continued the gradual improvement being used by agriculturists to pay then*. . which set in ninety days ago. In St. Louis proper merchants, the latter are settling with and through the northern tiers a fair showing has and the movement is ramifying to financtat ! been made in the matter of liquidating bank loans. tions in the large cities. The supply of loa The recent upturn in wheat prices has resulted in funds has increased slightly in some section freer marketing of that cereal by farmers, and the demand is still heavy. T o the South the other grains and live stock, notably hogs, are being is less favorable. Cotton is moving a snaoe to than heretofore, farmers who had decided to hold indefinitely being disposed to turn loose of part of their accumulations, but marketing conditions as a whole are unsatisfactory. Banks are still obliged to carry an unusually large volume of loans based on cotton, and similar conditions exist in the rice sections. Banks in the tobacco country And their funds tied up through unwillingness of farmers to sell their product at prevailing prices. There has been no change in interest rates charged by com mercial banks since the preceding issue of this report. More life has been displayed in the commercial paper market than noted for a long while. Brokers report business picking up since the Arst of the year. Country banks are purchasing to some extent, but city institutions are still out of the market. Gener ally the rate holds steady at 8 per cent, though sev eral choice names during the past few days arc being quoted at 7% per cent. INTEREST RATES Between December 16 and January 15 the high, low, and customary interest rates prevailing in St. Louis, Louisville and Little Rock, as reported by banks in those cities, were as follows: St. Louis H L C Customers* Prime Commercial Paper: 30 to 90 days............................................................... -7^ 4 to 6 months......................................................... 7 Prime Commercial Paper purchased in open market: 30 to 90 days............................................................... 4 to 6 months......................................................... 7 Bankers' Acceptances of 60 to 90 days: Endorsed................................................................... Unendorsed.......................................................................-6% Loans secured by prime stock exchange collateral or other current collateral: 8 8 8 8 .8 7 6^ 6^ 7 7 Louisville L H C 6 6 6 6 8 8 8 8 8 8 7 7 8 6 8 8 6 8 7 7-7% 6% 6% 6% 6% 6% 6% 7 7 7 7 7 6 6 6 6 6 6 6 6 6 6 6 6 8 8 8 7 7 7 8 8 8 10 8 8 8-10 7 7-8 8 8 8 8 6^ 7 5% 6^ 6^ 6% 7 6^ 6 7 7 7 7 7 7 Little Rock H L C 6 CONDITION OF BANKS The condition of banks in this district, and changes since a month ago and last year, are reflected in the following comparative statement, showing the principal resources and liabilities of member banks of St. Louis, Louisville, Little Rock, Memphis and Evansville: Jan. 7. 1921_________ Dec. 10, 1920 Number of banks reporting.................................................... 36 35 Loans and Discounts (including bills rediscounted with F. R. Bank): Secured by U. S. Gov't, obligations.................................$ 27,623,000 $ 32,399,000 Secured by stocks and bonds other than U. S. Bonds. .. 121,947,000 127,530,000 All other loans and discounts.............................................. 357,525,000 — Investments: U. S. Gov't bonds . 29,207,000 30,251,000 u . s. Victory Notes............................................................. 2,422,000 2,706,000 U. S. Certificates of Indebtedness..................................... 2,374,000 3,631,000 Other bonds, stocks and securities................................... 64,036,000 Total loans, discounts and investments (including bills --------------- rediscounted with F. R. Bank)........................................ $605,134,000 $$78,510,000 Reserve balances with Federal Reserve Bank....................- 44,379,000 40,923,000 Cash m vault.............................................................................. 10,245,000 9,459,000 Net demand deposits on which reserve is computed.......... 325,494,000 Trnie deposits........... ..... 137,553,000 130,777,000 Government deposits................................................................. 2,983,000 649,000 Jan. 9,1920 35 $ 35,104,000 157,659,000 36.840.000 4,752,000 25.776.000 $606,289,000 49.897.000 11.365.000 380.368.000 114.094.000 23.249.000 DEBITS TO IND IVID U AL ACCOUNTS The following table, compiled from figures furnished by the several clearing houses, gives the total ebits charged by banks to checking accounts, savings accounts and trust accounts of individuals, Arms, corporations and U. S. Government, also certiAcates of deposit paid in the leading cities of this district durthe past month, with comparisons for the preceding month and corresponding period a year ago. ^ accounts of banks and bankers are not included. . . . t *hese Agures are considered the most reliable index available for indicating actual spending by tnc pu he during the periods which they cover. Debits to depositors' accounts for four weeks ending: Jan. 12,1921 Dec. 15,1920________ Jan. 14,1920 $ 644,752,000 $549,781,000 St. Louis______________ .. ........................... $584,267,000 191.143.000 114.426.000 Memphis............ ......... .................. 116,158,000 154.408.000 103.465.000 Lewisville................. ................. 107,310,000 39.098.000 45.910.000 LRtlc Rock.________ " I ................... *____ —.... 50,419,000 24.681.000 19.602.000 Evansville___________ I J ____________ 22,564,000 Total. -4880,718,000 $833,184,000 $1,054,082,000 F E D E R A L R ESE R V E O P E R A T IO N S Effective January 22, 1921, the Federal Reserve Bank of St. Louis established a 6% rate on all paper secured by bonds or notes of the United States, except Liberty Loan Bonds or Victory Notes. The normal discount rates on said date were as follows 15 days and less 16 to 60 days 61 to 90 days Member Banks' Collateral Notes: Secured by Liberty Loan Bonds or Victory Notes...................................... 5^% Member Banks' Collateral Notes: Secured by Bills Receivable or Bonds or Notes of the United States 6% except Liberty Loan Bonds or Victory Notes......... Rediscounts: Secured by Liberty Loan Bonds or Vic tory Notes....................................................................... 5^% 5%% 5^% Rediscounts: Commercial P a^ aper Secured by Bonds or Notes of the United States except Liberty 6% 6% Loan Bonds or Victory Notes.................................... 6% 6% 6% 6% Rediscounts: Agricultural or Livestock Paper................ 6% 6% Rediscounts: Trade Acceptances...................................... 6% Rediscounts: Bankers' Acceptances.................................. 5%% 5%% 5%% Bankers' Acceptances purchased in the market subject to agreement. 91 days to 6 months -----....... 6% ------ In December this bank discounted $168,300,049 of paper for 318 member banks, which represents a decrease of $9,878,577 under the amount discounted in November, and an increase of 19 in the number of banks accommodated. Acceptances purchased in December amounted to $2,316,252, an in crea se of $1,743,689 over the preceding month. Between the dates December 17, 1920 and January 14, 1921, the net deposits of the Federal Reserve Bank of St. Louis and its branches decreased $638,628, and a decrease of $15,558,243 was shown in bills dis counted for member banks. Federal Reserve currency in circulation decreased $7,680,345. The resources and liabilities of the Federal Reserve Bank of St. Louis on January 14, 1921, as com pared to a month ago and a year ago, are shown in the following statement: RESOU RCES: Jan. 14,1921 Gold Coin and Certificates............................................. $ 4,810,000 Gold Settlement Fund—F. R. Board................................. 23,699,000 Gold with Foreign Agencies............................................. 155,000 Dec. Dcc. 17,1920 $ 2,879,000 20,590,000 3,184,000 Jan. 16,1920 $ 2,853,000 22,359,000 5,655,000 28,664,000 53,619,000 6,493,000 26,653,000 47,270,000 6,142,000 30.867.000 53.879.000 7.536.000 88,776,000 6,312,000 80,065,000 5,450,000 92.282.000 2.934.000 $ 95,088,000 $ 85,515,000 $ 95,216.000 37,256,000 64,397,000 585,000 48,405,000 68,806,000 1,908,000 62.032.000 33.683.000 15.668.000 102,238,000 1,153,000 15,968,000 119,119,000 1,153,000 16,542,000 111,383,000 1.153.000 17.281.000 Total Earning Assets............................................................$119,359,000 $119.359.000 Bank 542,000 Uncollected Items and other deductions from 37,558,000 5% 623,000 All Other Resources. 383,000 $136,814,000 891,000 $129,817,000 356^00 43,854,000 623,000 824,000 74.553.000 725.000 282.000 ..$253,553,000 $268,521,000 $300,949,000 ... 4,367,000 ... 8,346,000 ... 1,714,000 ... 65,043,000 ... 33,749,000 ;.. 725,000 4,364,000 5,884,000 2,580,000 63,293,000 41,512,000 781,000 4.081.000 3.724.000 5.128.000 70.869.000 59.720.000 4.183.000 Tota) Gross Depoi ...$101,231,000 $108,166,000 F. R. Notes in Actual F. R. Bank Notes in A AH Other Liabilities.... ... 129,513,000 .. 9,098,000 998,000 136,374,000 9,918,000 3,815,000 136,621,000 15.925.000 698,000 T O T A L L IA B IL I 4253,553,000 Ratio o f tota! reserves against net deposit and F. R. note !iabi!ities combined.............. 49.2% Contingent !iabi!ity on bi!!s purchased for foreign correspondents................................................................. 752,000 $268,521,000 $300.949,000 42.6% 47.1% Total Gold Held by Bank........ Gold with Federal Reserve Agent.. Gold Redemption Fund................... Total Gold Reserve.. Bills Discounted: Secured by Government War gations................................................................... Bills Discounted: AH Other...............................**.*.. Bills Purchased in Open Market.............................. Total Bills on H U. S. Government B U. S. Certificates of T O T A L RESOL LIA B IL IT IE S: Capita! Paid in......... Surplus........................ Government Deposit: Due Member BanksDeferred Avaitabititv (Compiled January 20, 1921) 752,000 $139,900,000
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