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MONTHLY REVIEW
Of Agricultural, Industrial, Trade and Financial
Conditions in the Eighth Federal Reserve District
RELEASED FOR PUBLICATION ON THE AFTERNOON OF JANUARY 28, 1938
FEDERAL
RESERVE
District Summary
Agriculture:
Winter wheat acreage sow
Livestock:
Receipts at National Stock
Shipments from aforesaid
Production and Distribution:
Sales by mfrs. and wholesa
Department store sales.......
Car loadings........................ .
Fall 1937 comp, with
1936 (1927-31 Av.)
— 13.7% + 33.2%
Dec. 1937 comp, with
Dec. 1936
Nov. 1937
— 9.6% — 17.1%
— 3.9
— 7.2
—27.1
+56.9
— 6.3
— 29.2
— 5.2
— 21.1
..—43.2
..+55.4
3.9
— 42.8
— 79.5
+ 12.5
+12.0
+26.8
— 9.2
+ 10.1
— 12.5
+114.7
— 11.3
— 9.1
Building and Construction:
Bldg.permits,incl. repairs j
Value construc. contracts 2
Miscellaneous:
Commercial failures I S ”?
Member Banks (24):
Gross deposits........
Loans.......................
Jan. 12/38, comp, with
Dec. 15,’ 37 Jan. 13/37
+ 2.6% — 6.0%
+ 12.9
— 1.5
— 19.7
— 2.5
R A D E and industry in the Eighth District
during December and the first half of Janu
ary continued the recessionary trends which
have been in progress since last summer. The rate
of decline, however, has been much less acute than
during the early fall, and since the turn of the year
quite distinct improvement has developed in a num
ber of important lines. Notwithstanding the severe
setback during the last half, results achieved in 1937
were more favorable than during the preceding
twelve months and all years since 1931. For the
month of December virtually all available indices
and other measurements used in gauging the status
of business recorded decreases as compared with the
preceding month, also with the corresponding period
a year ago. Aside from department stores and some
other branches of retail distribution affected by the
holiday trade, all lines of merchandising investi
gated by this bank showed decreases from a year
earlier, and with the exception of electrical supplies
and drugs and chemicals, decreases from November
were recorded. At industrial plants, particularly
those producing durable goods, activities in Decem
T
BANK
OF
ST*
LOUIS
ber were at the low point of the year. This was true
particularly of iron and steel, lumber, glass, cement
and the entire category of building materials.
Production of bituminous coal at mines in this
area during December was about 27 per cent greater
than in November, but 4 per cent less than the out
put for that month a year earlier; during the year
tonnage lifted exceeded that of 1936 by 1 per cent.
Consumption of electricity by industries in the prin
cipal cities in December was smaller by 9.1 per cent
and 11 per cent, respectively, than a month and a
year earlier and for the year the total was 3.2 per
cent smaller than that in 1936. Ingot production at
steel plants at the end of December was at 15 per
cent of capacity, the low point of the year, and com
paring with the peak of 94 per cent at mid-May. In
the second week of January the rate had been raised
to 21 per cent. Factory employment and payrolls
declined in considerably more than the seasonal
amount in December, and farm employment and
wage scales at the end of the month were measur
ably below those of a year earlier. Final quarter of
1937 postal receipts in the principal cities fell sligh
tly below the same interval in 1936, but aggregate
receipts for the year were 2 per cent greater than in
1936 and approximately 11 per cent in excess of the
1935 total.
The volume of retail trade in December, as re
flected in sales of department stores in the principal
cities, was 56.9 per cent greater than in November
and 5.2 per cent less than in December, 1936. V ol
ume for the year exceeded that of 1936 by 5.8 per
cent and was the largest for any year since 1930.
Combined sales of all wholesaling and jobbing firms
reporting to this bank in December was 27.1 per cent
and 29.2 per cent smaller, respectively, than a month
and a year earlier and for the year the total was 3.9
per cent larger than in 1936. The dollar value of per
mits issued for new buildings in the chief cities in
December was 35.4 per cent above the preceding
month and 86.5 per cent less than in December,
1936; total for the year fell 26.4 per cent below that
of 1936. Dollar value of construction contracts let
in the Eighth District in December was 4 per cent
Page 1
less than in November,but 12.5 per cent greater than
a year earlier; for the year the total value of con
struction contracts was smaller by 10.6 per cent
than in 1936.
Freight traffic of railroads operating in this dis
trict, according to officials of the reporting lines,
declined more than seasonally in December from
November, and was measurably smaller than in
December, 1936. For the twelve months of 1937,
however, the volume exceeded that of all years since
1930. Increases over the preceding year were re
corded in all classifications other than livestock,
most notable gains being, respectively, in ore, forest
products, coke, miscellaneous freight and merchan
dise L. C. L. Since January 1 there has been a mod
erate upturn in loadings, but the volume continues
below 1936. Due to extraordinarily heavy holiday
travel, passenger traffic of the reporting roads in
December showed a substantial increase over the
same period in 1936. Estimated tonnage of the Fed
eral Barge Line between St. Louis and New Orleans
in December was 18 per cent smaller than in Novem
ber and 55 per cent greater than in December, 1936;
total tonnage handled in 1937 exceeded that of the
preceding year by 11 per cent.
Reports relative to collections during the past
thirty days reflect considerable spottiness, both with
reference to the several lines and geographic loca
tions. As a whole results showed no marked change
as contrasted with the similar period immediately
preceding, but were somewhat less satisfactory than
a year ago. In the typical cotton sections merchants
report backwardness in payments, ascribed to the
decline in raw cotton prices, and the relatively low
prices being realized by rice producers are also hav
ing a retarding effect on payments. With rapid prog
ress in marketing of tobacco, there has been a con
siderable volume of liquidation of indebtedness
based on that commodity. In the large urban cen
ters, retailers report backwardness in December
payments, but improvement is noted since the first
of this year. Questionnaires addressed to representa
tive interests in the several lines scattered through
the district show the following results:
Excellent
December, 1937......... 2.0%
November, 1937......... 1.5
December, 1936......... 6.1
Good
33.8%
34.0
60.6
Fair
44.0%
50.5
31.8
Poor
20.2%
14.0
1.5
Commercial failures in the Eighth Federal Re
serve District in December, according to Dun and
Bradstreet, numbered 28, involving liabilities of
$483,000, which compares with 25 defaults in
November with liabilities of $381,000 and 32 insol
vencies for a total of $225,000 in December, 1936.
Page 2
In 1937 there were 271 failures with liabilities of
$3,378,000 against 372 defaults involving liabilities
of $4,709,000 in 1936.
Detailed Survey
MANUFACTURING AND W H O LESALIN G
Net Sales
12 months 1937
Dec. 1937
comp. with same
compared with
period, 1936
Nov. ’ 37 Dec. ’ 36
Boots and Shoes......... — 36.4% — 28.6%
+ 7.2%
— 1.0
Drugs and Chemicals.. ! + 0.5
+ 5.3
— 4.0
1— 40.4
— 37.6
+ 21.8
— 23.2
Electrical Supplies..... . + 16.4
— 41.7
— 19.4
+ 2.7
—
0.5
— 14.9
— 2.3
—
33.3
— 12.4
+ 7.5
Lines of
Commodities
All above lines.........^— 27.1
— 29.2
+
3.9
Stocks
Dec. 31, 1937
comp, with
Dec. 31, 1936
+ 16.9%
+ 6.9
+ 4.9
+ 31.4
+■ 13.3
— 11.1
— 5.6
+
3.8
Automobiles — Combined passenger car, truck
and taxicab production in the United States in De
cember totaled 326,234 against 329,876 in November
and 498,710 in December, 1936. In 1937 production
amounted to 4,809,515, which compares with 4,454,115 in 1936 and 3,946,934 in 1935.
Boots and Shoes — The decrease in sales of the
reporting firms from November to December, shown
in the above table, was seasonal in character, but
considerably smaller than the average during the
past several years. Production, which had declined
sharply since last August, turned slightly upward in
late December and during the first half of January.
The trend of prices was lower, with specific reduc
tions reported in a number of lines.
Clothing — December sales of the reporting
clothiers were about one-fourth smaller than in
November and 22 per cent less than in December,
1936. Stocks decreased 18 per cent between Decem
ber 1 and January 1, but on the latest date were 21
per cent larger than a year earlier. Mild weather
generally through the district, coupled with reduced
employment, had the effect of holding down distri
bution of heavy apparel at retail. Advance orders
for spring and summer lines were reported substan
tially below the volume a year and two years ago.
Drugs and Chemicals — The movement of sea
sonal goods was reported in approximately the ex
pected volume, but this was more than offset by a
sharp recession in demand for heavy drugs and
chemicals, incident to curtailed manufacturing activ
ities. Price changes were negligible, but the average
was slightly below that at the same time last year.
Dry Goods — December sales of the reporting
firms were the smallest recorded for any month in
1937 and the lowest for any December since 1933.
The decline from December, 1936, shown in the
above table was accounted for in large part by a de
cline in prices. Reports covering the first half of
January indicate a decrease in sales of about onefourth as compared with the like interval in 1937.
Electrical Supplies — While December sales in
this classification declined about 23 per cent from
the same month in 1936, an increase of more than
the usual seasonal proportions took place in the
comparison with the preceding month, and aggre
gate for the year was 21.8 per cent larger than in
1936, and 50 per cent greater than in 1935.
Furniture — Declines in December sales of the
reporting firms extended to virtually all lines, but
were most evident in household furniture and fur
nishings. While the volume of business in 1937 was
larger than in the preceding year, the betterment was
achieved entirely during the first six months. Each
month during the last half showed declines under
the similar period a year earlier.
Groceries — Generally throughout the district,
but more particularly in the south, demand for gro
ceries decreased sharply during the final quarter
of 1937 as contrasted with earlier months, with the
result that total volume of sales for the year fell
slightly below the aggregate in 1936. Cumulative
sales for the first six months of 1937 were 10.4 per
cent greater than for the first half of 1936.
Hardware — The movement of seasonal mer
chandise, which had been backward since early fall,
developed no betterment in December, and orders
for spring and summer lines were in smaller than
usual volume. Retail merchants in both the country
and large urban centers were reported to be filling
only immediate requirements.
Iron and Steel Products — The customary re
cession in activities in the iron and steel industry
incident to the holiday and inventory period was
considerably more pronounced than has been the
case in recent years. Operations at foundries, mills,
machine shops and other ferrous metal working
plants at the end of December were at the lowest
point of the year, and wThile moderate improvement
has taken place since January 1, the average rate is
still sharply below that of any similar period since
1932. Purchasing of both raw and finished materials,
according to interests reporting to this bank, was
confined almost exclusively to immediate require
ments. The carryover of certain raw materials, in
cluding pig iron, into the new year was in many in
stances larger than expected, and as a result con
tracting for first quarter has been at a minimum.
Despite relatively light shipments, backlogs of or
ders at mills and foundries underwent a further
reduction, and as of January 1 were measurably
smaller than a month earlier. Producers and distrib
utors of sheets, bars, plates and other rolled materi
als report ordering for first quarter requirements
the smallest in more than five years. Iron and steel
warehouse and jobbing interests reported December
sales about 6.5 per cent below the preceding month
and 16 per cent less than in December, 1936. Rail
roads, which are usually heavy buyers at the end of
the year, are disposed to defer commitments pending
the outcome of their application for higher rates.
The melt of pig iron in December represented the
lowest total for any month in 1937, and the same
was true of pig iron shipments. Since the first week
of January stove foundries have resumed operations,
but at sharply reduced schedules as contrasted with
those during the early fall. Jobbing foundries are
operating only two or three days per week, and
report a dearth of new orders. Steel ingot production
at mills in this area, which declined to 15 per cent
Rate of steel ingot operations in
St. Louis area in 1937.
of capacity during the last week of December, in
creased to 21 per cent in the first week of January.
At structural steel fabricating establishments the
rate of 30 per cent was unchanged from thirty days
earlier. The decline in scrap iron and steel prices,
which began at the end of the summer, was halted
in early January, and some grades, including heavy
melting steel, advanced fractionally. Production of
pig iron for the entire country in December totaled
1,503,474 tons, the smallest since January, 1935, and
comparing with 2,007,031 tons in November and
3,125,192 tons in December, 1936. Output for the
year was 36,709,139 tons against 30,682,704 tons in
1936. Steel ingot production in the United States in
December was 1,472,241 tons, against 2,153,781 tons
in November and 4,424,867 tons in December, 1936.
Output in 1937 was 49,507,766 tons, against 46,807,780 tons in 1936.
MINERALS
Coal — Industrial consumers of bituminous coal
made additions to their stocks during November,
1937, and on December 1 there were 40,016,000 tons
on hand, an increase of 387,000 tons over November
Page 3
1 stocks. This situation was occasioned by reduced
activities and relatively the largest increase was
shown by the manufacturing group. Production of
soft coal in the United States in December totaled
36,226,000 tons, against 36,255,000 tons in November
and 45,756,000 tons in December, 1936. Notwith
standing the sharp decline under a year ago in
December, output for the year at 440,265,000 tons
was 5,195,000 tons or 1.4 per cent greater than in
1936. At mines in this general area production in
December was about 27 per cent more than in
November, and 4.2 per cent less than in December,
1936; output in 1937 was approximately 1.0 per cent
greater than in 1936. Illinois mines produced 5,221,852 tons in December against 4,489,871 tons in
November, and 5,543,565 tons in December, 1936.
There were 152 mines in operation in December,
and 37,006 men on payrolls, against 170 active mines
and 38,295 operatives in November. In 1937 there
were 47,902,744 tons lifted at Illinois mines against
47,329,546 tons in 1936.
Petroleum — Owing mainly to the larger output
in Illinois, incident to developments in that state of
new oil properties, production of crude petroleum in
states of the Eighth District moved steadily upward
during the first eleven months of 1937. November
production in these states was 4 per cent greater
than during the preceding month and approximately
64 per cent in excess of November, 1936. Stocks de
creased moderately in both comparisons. Detailed
figures of production and stocks by states are given
in the following table:
Production______
(In thousands
Nov.,
Oct., Nov.,
of barrels)
1937
1937 1936
Arkansas ........... 1,286
1,259 793
Illinois .............. 990
912 363
Indiana .............
66
68
61
Kentucky ......... 436
436 475
Totals........... 2,778
2,675
1,692
Cumulative
for 11 months
1937
1936
10,372
9,591
6,341
4,058
753
727
5,047
5,136
22,513
19,512
Stocks
N ov., Nov.,
1937
1936
2,792 3,694
10,747 11,083
2,823 2,263
888
785
17,250
17,825
TRANSPORTATION
The St. Louis Terminal Railway Association,
which handles interchanges for 28 connecting lines,
interchanged 75,273 loads in December, against
80,311 loads in November and 95,438 loads in De
cember, 1936. For the first nine days of January the
interchange amounted to 20,832 loads, which com
pares with 23,484 loads during the corresponding
period in December and 26,769 loads during the
first nine days of January, 1937. Passenger traffic
of the reporting lines in December showed an in
crease of 10 per cent in the number of passengers
carried and 14 per cent in revenue as compared with
the same month a year earlier. For the entire coun
try loadings of revenue freight for the 52 weeks
ending December 25, totaled 37,992,928 cars, which
Page 4
compares with 36,062,675 cars in 1936 and 31,504,134
cars in 1935. Estimated tonnage of the Federal
Barge Line between St. Louis and New Orleans \
in December was 160,500 tons, against 195,075 tons
in November and 103,455 tons in December, 1936.
Tonnage transported by the Barge Line in 1937
totaled 1,831,813 tons, which compares with 1,652,638 tons in 1936 and 1,545,601 tons in 1935.
AGRICULTURE
From the standpoint of yields per acre and pro
duction of principal crops, 1937 was an exceptional
year in Eighth District agriculture, according to the
U. S. Department of Agriculture and the depart
ments of the several states. Yields of all the main
crops were measurably above a year earlier and the
5-year (1928-1932) average and in the case of cotton
and some lesser productions, were the largest of
record. Despite the drastic decline in prices late in
the year, aggregate cash income from the sale of
farm products plus Government payments in states
including the district in 1937 was estimated at
$1,713,014,000, an increase of $92,949,000, or 5.7 per
cent over the 1936 total. An outstanding exception
to the increase was cotton, returns from which were
considerably below the year before, though the dis
trict yield was 1,306,000 bales larger. Fruit and vege
table crops were the largest in recent years and a
favorable development during the season was the
replenishment of depleted feed and forage supplies,
caused by successive years of drouth, by abundant
feed and forage crops. Stocks of corn on farms in
states of the district on January 1, were more than
twice as large and reserves of oats about two-thirds
larger than on the same date in 1937. The status of
the live stock industry as a whole underwent dis
tinct improvement during the year. Combined re
ceipts at the St. Louis market of cattle, sheep and
hogs in 1937 were 5 per cent and 10 per cent larger,
respectively, than a year and two years earlier.
Combined receipts from the sale of principal
farm products and Government payments to farm
ers in states including the Eighth District during
the period January-November, 1935-36-37 and dur
ing November, 1936-37, are given in the following
table:
(In thousands
of dollars)
November
1937
1936
Indiana................... $21,489 $ 22,813
Illinois....................
36,288
42,071
Missouri..................
23,678
25,860
Kentucky................
5,690
6,354
Tennessee...............
12,738
11,853
Mississippi..............
20,548
26,289
Arkansas................
21,941
21,248
Totals.................. 142,372
156,488
Cumulative for 11 months
1937
1936
1935
$266,171
439,257
251,093
130,133
114,349
145,227
122,508
$241,391
408,713
234,802
92,033
92,867
136,212
100,411
1,468,738 1,306,429
$218,920
348,059
221,570
109,343
95,007
115,796
101,182
1,209,877
The winter to date has been in the main favor
able for agricultural activities and the progress of
fall-sown grains. Quite generally farm routine has
been brought up to the seasonal schedule, though
in parts of the south, field work was delayed by
adverse weather conditions during December. The
acreage seeded to winter wheat in states including
the Eighth District last autumn was 8,443,000 acres,
which compares with 9,779,000 acres seeded in the
autmun of 1936 and the 5-year (1927-31) average of
6,337,000 acres. The condition of the growing crop
is reported somewhat below a year ago and the
5-year average. There was a drop of 15 points in the
index of farm wage rates during the last quarter of
1937, or more than twice the average seasonal
amount of recent years. The decline resulted largely
from an increase in persons available for hire at a
time when farm labor requirements usually decline.
Livestock — During the past thirty days there
were no changes worthy of note from the generally
high condition of livestock which has prevailed
since early in the fall. Combined marketings of cat
tle, sheep and hogs declined seasonally in December
and were measurably below December, 1936.
The number of cattle on feed for market in the
Corn Belt States on January 1, according to the
Bureau of Agricultural Economics, was 15 per cent
larger than the number on feed a year earlier. While
the number is larger than a year ago, it is apparently
not large in comparison with numbers fed in years
of large corn production prior to the drouth years,
when feeding was cut down because of scant corn
supplies. The estimated number on feed on the first
day this year, as a percentage of the number on Janu
ary 1, 1937, for Eighth District states was as fol
low s: Illinois, 115; Indiana, 110 and Missouri, 110.
The number of sheep and lambs on feed on Jan
uary 1 in the principal feeding states was about 11
per cent in excess of the number on the same date
in 1937. All of the increase occurred in the Corn Belt
States.
Receipts and shipments at St. Louis as reported
by the National Stock Yards were as follows:
_________Receipts_______
Dec.,
Nov.,
Dec.,
1937
1937
1936
Cattle and Calves..... 104,406 135,441 127,956
Hogs ......................... 223,373 228,476 284,041
Horses and Mules..... 2,160
2,895
4,536
Sheep ......................... 62,143 66,905 56,728
______ Shipments________
Dec.,
Nov.,
Dec.,
1937
1937
1936
71,630 86,225 69,581
136,512 129,559 147,874
2,304
3,188
5,817
10,162 18,844
6,337
Totals..................... 392,082 433,717 473,261
220,608 237,816 229,609
The following table shows comparative receipts
and shipments for the years 1935,
1936 and 1937:
(In thousands)
Cattle
Hogs
Horses
Sheep
and Calves.....
.........................
and Mules.....
.........................
________ Receipts
1937
1936
1,589
1,483
2,265
2,474
52
62
1,050
709
Totals................. 4,956
4.728
1935
1,641
2,026
70
765
4,502
1937
995
1,308
52
382
2,737
Shipments
1936
1935
826
938
1,514
1,286
62
69
137
144
2,539
2,437
Cotton — Eighth District production of cotton
in 1937 is estimated by the Department of Agricul
ture at 4,710,000 bales, against 3,404,000 bales in
1936 and the 14-year (1923-36) average of 2,763,000
bales. Due to unfavorable weather in many sections
and the decline in prices, the crop was gathered
later than during the preceding several years. For
the same reasons less than the usual acreage of land
had been broken at mid-January. In states of the
district, sales of fertilizer tags in 1937 reached the
equivalent of 1,057,748 tons, against 877,256 tons in
1936 and 703,086 tons in 1935. Reflecting improved
inquiries from both domestic and foreign consumers,
and the strong statistical position of contracts,
prices of raw cotton advanced during the week
ended January 15, to the highest level since midSeptember. In the St. Louis market the middling
grade ranged from 7.65c to 8.65c per pound between
December 15 and January 15, closing at 8.65c on the
latter date, which compares with 7.85c on December
15 and 13.10c on January 15, 1937. Receipts at
Arkansas compresses from August 1, 1937 to Janu
ary 7, 1938, totaled 1,565,528 bales against 1,220,819
bales for the corresponding period a year earlier.
Stocks on hand as of January 7 were 949,708 bales
against 537,627 bales on the same date in 1937. Of
the stocks on hand as of January 7, 504,466 bales
were in the Government 9c loan.
COMMODITY PRICES
Range of prices in the St. Louis market between
December 15, 1937 and January 15, 1938, with clos
ing quotations on the latter date and on January 15,
1937, follow s:
ri
High r Low
Wheat
*May ................ ...per bu..$ .99 s/s $ .90H
*July ............... .... “
.847%
.93%
*Sept.................. .... “
.92%
.89
*No. 2 red winter “
1.07%
.93%
*No. 2 hard “
1.08 ^
.94%
Com
.... “
.62%
.59
*July ................ .... “
.6 2 ^
.59%
.61%
.... "
.62 ^
*No. 2 mixed ...... “
.65%
.58%
*No. 2 white .. .... “
.66
.58%
Oats
*May ............... .... “
.34*6
.3 m
*July .................... "
.32^4 .287%
*Sept.................. .... “
.32*4
.31H
*No. 2 white .. ....
.33%
.36/4
Flour
Soft patent..... ...perbbl. 5.60
5.00
Spring “ ...... ... “
6.80
6.00
Middling Cotton...per lb.
.0865
.0765
Hogs on H oof.... ..per cwt. 8.85
6.15
•Nominal quotations.
Jan. 15, 1938
$
.98%
.92%
.907%
1.06
1.07
.60*4
.607%
.61%
.60%
.60H
Jan. 15, 1937
$
1.33
1.35
1.12
1.46%
1.44%
1.26%
1.25*6
1.14 H
1.13%
1.17
.33H
.317%
.31%
.36
.55%
5.00@5.25
6.45@6.80
.0865
6.15@8.65
6.50@ 7.00
8.40@ 8.60
.1310
6.00@ 10.40
Tobacco — Following the holiday recess, sales
were resumed on all burley markets January 3. A c
cumulations on floors and new deliveries were in
extremely heavy volume. It is estimated that about
half of the burley crop was sold prior to the holi
days and that 75 per cent will be disposed of by
February 1. Opening sales in early December aver
aged around $21 per cwt., and in the three weeks
following the average advanced to $26. Since Janu
ary 3 there has been a steady decline in prices and
Page 5
the average on January 18 fell to $17.74, the low
point of the season to that date. Available statistics
indicate that the burley crop is below the annual
supply and under average annual consumption.
Quality of the crop is generally high.
In the Green River and Stemming districts body
and quality of the tobacco are below expectations,
with average prices about $10 per cwt. The quality
of offerings of one sucker tobacco is disappointing,
which fact is reflected in a reduced average price,
around $8.50. This crop is moving rapidly. Offerings
in the dark fired district are reported small, quality
below ordinary, with noticeable scarcity of fine leaf.
Average prices are below a year ago.
R E TA IL TRADE
Department Stores — The trend of retail trade
in the Eighth District, as reflected in statistics of
department stores in the principal cities which re
port to this bank, is shown in the following compar
ative statement:
Stocks
Stock
Net Sales
Dec. 1937
12
compared with
Nov. 1937 Dec. 1936
El Dorado, Ark......... + 6 8 .5 %
+ 14.6%
Ft. Smith, Ark......... 4" 61.1
— 4.2
Little Rock, Ark....... + 45.3
— 7.7
Louisville, K y........... + 76.4
— 5.1
Memphis, Tenn......... + 75.8
— 5.0
Pine Bluff, Ark......... +51.1
— 17.9
St. Louis, M o........... + 50.4
— 4.9
Springfield, M o......... +46.2
— 7.0
All Other Cities......... +62.7
— 11.5
8th F. R. District.....+ 56.9
— 5.2
on Hand Turnover
mos. 1937 Dec.31/37
Jan. 1, to
to same comp, withDec. 31,
period’ 36 Dec.31/36 1937 1936
+ 9.6% + 3.0%
3.06 2.90
+ 4.5
— 8.0
2.85 2.91
+ 2.0
+ 1.1
2.92 3.31
+ 5.6
+ 0.7
4.24 4.56
+ 4.8
+ 6.7
3.33 3.67
— 2.0
— 23.5
2.62 3.03
+ 6.8
+ 3.5
4.08 4.42
+ 6.4
— 2.0
2.68 2.83
— 0.3
+ 1.2
3.19 3.48
+ 5.8
+ 3.0
3.82 4.15
Percentage of accounts and notes receivable
outstanding December 1, 1937, collected during
December, by cities :
Installment Excl. Instal.
Accounts
Accounts
El Dorado .. ............. % ............61.1%
Fort Smith..
......32.4
Little Rock. ...... 15.8 ...........40.0
Louisville ........ 10.9 ..... ......51.3
Memphis ......... 25.6 .... ..... 45.2
Installment Excl. Instal.
Accounts
Accounts
Pine Bluff................ % ...........40.1%
St. Louis .........18.5 ,...........56.1
Springfield .............. ...........25.2
Other Cities...... 13.9 ............52.8
8th F. R. D ist..l7.3 . ..........50.8
Specialty Stores — December results in men’s
furnishings and boot and shoe lines are shown in the
following table:
Stocks
Stock
_______ Net Sales_________
Dec. 1937
12 mos. 1937
compared with
to same
Nov. 1937 Dec. 1936 period ’ 36
Men’s Furnishings....+ 52.8% — 9.9% + 1.2%
Boots and Shoes....... + 34.5
+ 6.6
+14.3
Turnover
on Hand ___________
_________
Dec.31/37 Jan. 1, to
comp, with Dec. 31,
Dec.31/36 1937 1936
+11.9% 2.66 2.93
+12.5
6.73 7.09
Percentage of accounts and notes receivable
outstanding December 1, 1937, collected during
Decem ber:
Men’s Furnishings................. 35.3%
Boots and Shoes..................... 36.3%
BUILDING
The dollar value of permits issued for new con
struction in the five largest cities of the district in
December was 35.4 per cent greater than in Novem
ber and 86.5 per cent less than in December, 1936.
According to statistics compiled by the F. W. Dodge
Corporation, construction contracts let in the Eighth
Federal Reserve District in December amounted to
$12,676,300 which compares with $13,193,900 in
Page 6
November and $11,268,300 in December, 1936. For
the year construction contracts totaled $176,375,100
and for 1936, $197,262,101. Building figures for De
cember follow :
thousands)
Evansville....
Little Rock
Louisville....
St.
Louis....
New Construction
Cost
Permits
1936
1936
1937
1937
31
$ 208 $ 40
1
52
71
23
17
85
309
357
45
165
181
2,297
91
175
371
5,509
84
Dec. Totals 238
Nov.
“
481
Oct
“
678
Year
“ 7,194
479
477
812
6,712
1,121
828
1,195
18,245
8,274
1,867
4,811
24,805
Repairs, etc.
Cost
Permits
1937 1936
1937 1936
$ 38 $ 52
47
87
17
25
62
73
18
23
29
23
462
62
113
152
187
160
106
78
323
507
642
8,017
344
646
309
335
359
557
7,188 4,740
501
600
677
7,162
CONSUMPTION OF E LE C TR IC ITY
Public utilities in six large cities of the district
report consumption of electric current by selected
industrial customers in December as being 9.1 per
cent smaller than in November and 11.3 per cent
less than in December, 1936. Cumulative figures for
1937 show a decrease of 3.2 per cent as compared
with 1936. Detailed figures follow :
Dec.,
No. of
Custom
1937
ers
K .W .H .
Evansville .... 40
3.049
1,931
Little Rock.. 35
7,967
Louisville .... 82
Memphis ..... 31
2,338
974
Pine Bluff , 20
St. Louis. , ...181
17,876
(K .W .H .
in thous.)
Totals. ....389
^Revised.
34,135
Nov.,
1937
K .W .H .
2,731
1,808
8,305
2,292
1,060
21,384
Dec.
1936
K .W .H .
3,211
1,379*
8,853*
2.320
1,036
21,694
37,580
38,493
December, 1937,
compared with
Nov. 1937 Dec. 1936
— 5.0%
+ 11.6%
+40.0
+ 6.8
— 10.0
— 4.1
+ 0.8
+ 2.0
— 6.0
— 8.1
— 17.6
— 16.4
— 9.1
— 11.3
PO STAL RECEIPTS
Returns from the five largest cities of the dis
trict show an increase of 25.4 per cent in combined
postal receipts for the final quarter of 1937 over the
preceding three months, and a decrease of 1.5 per
cent as contrasted with the last quarter of 1936.
Detailed figures follow :
Quarter Ending
Dec. 31,
1937
Evansville ............ $185,811
Little Rock........... 228,463
Louisville ............. 818,576
Memphis ............. 821,128
St. Louis............. 2,997,663
Totals............. 5,051,642
Sept. 30,
1937
$154,625
205,372
674,001
599,258
2,396,142
4,029,398
Dec. 31,
1936
$184,324
212,756
833,957
869,507
3,027,321
5,127,865
Comp.last Qrs.
1937 and 1936
+ 0.8 %
+ 7.4
—
1.8
— 5.6
— 0.9
— 1.5
The following table shows the comparative
totals for the years 1937-36-35:
Totals
1937
..$17,739,649
1936
$17,385,578
1935
$16,018,830
1937 comp, with
1936
1935
+ 2 .0 %
+ 10.7 %
LIFE INSURANCE
Sales of new, paid-for, ordinary life insurance
in states including the Eighth District during De
cember, the preceding month, and a year earlier,
together with the totals for 1936 and 1937 are shown
in the following table:
(In thousands
of dollars)
Arkansas.......... $
Illinois..............
Indiana.............
Kentucky.........
Mississippi.......
Missouri...........
Tennessee........
Dec.,
1937
4,321
51,329
15,209
7,109
4,106
19,565
8,524
Totals........... 110,163
United States... 634,470
Nov.,
Dec.,
For the Year Cumul.
1937
1936
1937
1936 change
$ 3,355 $ 4,421$ 46,306 $ 46,217 + 0.2%
47,217
55,276580,350
550,834 + 5.4
13,569
15,830170,139
162,547 + 4.7
6,338
6,794
79,335
77,151 + 1.5
3,629
4,812
43,231
41,041 + 5.3
17,918
20,841
225,814
215,883 + 4.6
7,399
10,026
99,025
93,661 + 5.7
99,425
573,345
118,000 1,244,200 1,187,334 +
668,166 7,238,894 7,002,389 +
4.8
3.4
MONEY AND BANKING
Except for a moderate recession in the general
demand for credit, the banking situation during the
past thirty days showed little variation from the
similar period immediately preceding. Such changes
as occurred were traceable to the customary season
al influences, and indicated no significant deviation
from the trends which have existed since early in the
fall. Reflecting a reduction in inventories and con
servative purchasing in many commercial and indus
trial lines, new borrowing was in smaller volume
than current liquidation, with the result that loans
at commercial banks at mid-January were smaller
than a month earlier, though measurably higher
than at the corresponding period a year ago. Liqui
dation of loans by flour milling and grain handling
interests was in about the expected seasonal vol
ume, with the total of such loans about equal to that
at the same time in 1937. City banks in the tobacco
sections of Kentucky and Tennessee report a fair
volume of short-time loans to country correspond
ents to finance movement of the crop.
Member Banks — Between December 15 and
January 12 total loans of reporting member banks
in the leading cities decreased 1.5 per cent and on
the latter date were approximately 13 per cent great
er than on the corresponding report date in 1937.
Reflecting in large part the return flow of currency
and augmented bankers’ balances, gross deposits in
creased 2.6 per cent in the four-week period to the
highest point since the middle of last April. Reserve
balances moved upward and on January 12 were
larger by 10.7 per cent and 18.8 per cent, respective
ly, than a month and a year earlier. Investments de
clined moderately and were about 20 per cent below
a year ago at the end of the period.
Statement of the principal resource and liability
items of the reporting member banks follows :
Jan. 12, Dec. 15,
Jan. 13,
(In thousands of dollars)
1938
1937
1937
Loans— total ....................................................... $318,242 $323,076 $281,956
Commercial, industrial, and agricultural:
On securities............................................... 50,654
49,177
*
Otherwise secured and unsecured........... 146,672
147,604
*
Open market paper.......................................
9,882
9,578
*
Loans to brokers and dealers.......................
4,587
4,555
5,451
Other loans to purchase or carry securities 12,595
12,788
*
Real estate loans........................................... 46,782
46,682
43,527
Loans to banks...............................................
7,325
9,098
6,435
Other loans:
On securities............................................... 11,328
12,045
*
Otherwise secured and unsecured........... 28,417
31,549
*
Investments— total ........................................... 329,969
338,262
410,912
U. S. Gov’ t obligations................................. 191,616
198,055
238,491
Obligations guaranteed by U. S. Gov’t..... 45,352
45,583
62,690
Other securities............................................... 93,001
94,624
109,731
Gross deposits.... .................................................. 910,305
887,449
968,528
Demand deposits............................................. 720,039
698,254
783,182
Time^ deposits.................................................. 190,266
189,195
185,346
Borrowings .........................................................................
500
Above figures are for 24 member banks in St. Louis, Louisville,
Memphis, Little Rock and Evansville. Their resources comprise approxi61.6% of the resources of all member banks in this district.
_„
Comparable figures not available.
than on December 1, and 3.3 per cent in excess of
the total on January 6, 1937.
Interest rates remained at the low levels which
have marked recent months. At downtown St. Louis
banks rates charged as of the week ended January
15 follow: Customers’ prime commercial paper \l/2
to 5% Per cent; collateral loans, 2 to 6 per cent;
loans secured by warehouse receipts, 1y2 to SJ
/2 per
cent; interbank loans, Zy2 per cent and cattle loans,
4 to 6 per cent.
Federal Reserve Operations — The volume of
the major operations of the Federal Reserve Bank
of St. Louis (including its Louisville, Memphis and
Little Rock branches) during December, 1937, is
indicated by the following figures:
Checks (cash items) handled..............................
Collections (non-cash items) handled...............
Transfers of funds..................................................
Currency and coin received and counted.........
Rediscounts, advances and commitments.........
New issues, redemptions, and exchanges of
securities as fiscal agent of U. S. Govt., etc.
Bills and securities in custody— coupons clipped
21,883
22,669
38,366,354
Changes in the principal assets and liabilities of
this bank are shown below :
(In thousands of dollars)
Other advances and rediscounts...........
Bills bought (including participations)
,
,
Total earning assets..
Jan. 18,
1938
$
235
57
2
114,445
Dec. 18,
1937
$
239
1,174
78
112,482
Jan. 18,
1937
$
409
139
86
116,119
.
114,739
113,973
116,753
F. R. Notes in circulation..................... .
302,715
232,270
178,475
297,681
225,790
183,738
273,369
204,960
180,007
Industrial commitments under Sec. 13b
Ratio of reserve to deposit
and F. R. Note liabilities...................
326
176
1,313
73.7%
72.7%
71.0%
Total reserves................
Following are the rates of this bank for accom
modations under the Federal Reserve A ct:
(1) Rediscounts and advances to member banks, under
Section 13 and 13a..........................................................1^2% per annum
(2) Advances to member banks, under Section 10b........... 2 % per annum
(3) Rediscounts, purchases, and advances to member
banks, nonmember banks and other financing in
stitutions, under Section 13b:
(a) On portion for which such institution obligated....3 y2% per annum
(b ) On remaining portion...............................................4 % per annum
(4) Commitments not exceeding six months to member
banks, nonmember banks and other financing in
stitutions, to rediscount, purchase, or make ad
vances, under Section 13b........................................... y2% flat
(5) Advances to established industrial or commercial ("4 % to
businesses, under Section 13b................................. ( . 5 ^ % per annum
(6) Advances to individuals, firms and corporations,
including nonmember banks, secured by direct
obligations of United States under Section 13....... 4 % per annum
Debits to Individual Accounts — The following
comparative table of debits to individual accounts
reflects spending trends in this district:
(In thousands
of dollars)
Greenville,
Aggregate amount of savings deposits held by
selected banks on January 5 was 0.8 per cent greater
Pieces
Amounts
5,011,660 $1,129,840,223
179,626
36,616,859
5,955
359,296,413
24,102,979
42,620,767
62
4,519,231
(Completed January 22, 1938)
Dec.,
1937
id Natl.
11..$ 34,285
5,820
.... 32,862
:.... 13,682
....
6,258
Nov.,
1937
Dec.,
1936
.... 13,740
?ex. 8,422
$ 34,809
4,982
29,953
12,994
6,454
2,656
35,448
151,962
135,381
5,750
9,957
7,815
572,260
2,011
13,437
7,349
$ 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
,.1,137,315
1,033,218
1,250,784
.... 38,364
.... 176,187
.... 140,385
7,021
.... 10,613
....
8,366
Dec. 1937 comp, with
Nov. 1937 Dec. 1936
— 1.5%
+ 16.8
+ 9.7
+ 5.3
— 3.0
— 4.6
+ 8.2
+ 15.9
+ 3.7
+22.1
+ 6.6
+ 7.1
+ 11.2
+ 16.2
+ 2.3
+ 14.6
— 7.5%
+ 15.9
— 11.1
— 0.1
— 22.2
— 4.5
— 10.5
— 14.3
— 17.9
— 0.9
+ 11.0
— 11.0
— 5.5
— 15.8
— 14.1
— 10.1
+10.1
— 9.1
Page 7
N a t i o n a l s u m m a r y o f b u s in e s s c o n d i t i o n s
B Y BO A R D O F GOV E R N O R S O F F E D E R A L R E SE R V E SYSTEM
IN D U S T R IA L PRO DUCTION
120
110
100
90
Index of physical volume of production, adjusted for sea
sonal variation, 1923-1925 average = 100. By months, Jan
uary, 1934, through December, 1938. Latest figure 84,
FACTORY E M P L O Y M E N T A N D PAYROLLS
Indexes of number employed and payrolls, without adjust
ment for seasonal variation, 1923-1925 average = 100. By
months, January, 1934, through December, 1938. Latest
figures, employment 88.5, payrolls 80.9.
W H O LESALE
P R IC E S
9ENT
PER
FARM PRODUC■ ts A
1
LV
FOoos
\
.
k
f i j \ 1 1 />
'THER
v
comiM
ODITiES
\
^
...
/ X
J
Indexes compiled by the United States Bureau of Labor
Statistics 1926 = 100. B y weeks, 1934 through week end
ing January 15, 1938. Latest figures, farm 73.4, foods 76.8,
other 83.6.
EXCESS RESERVES OF MEMBER BANKS
Wednesday figures of estimated excess reserves for all
member banks and for selected New York City banks,
January 3, 1934, through January 19, 1938.
Page 8
Industrial output declined further in December and, according to
preliminary reports, showed little change in the first three weeks of
January. Prices of raw materials, which had declined sharply in Octo
ber and November, have been maintained since that time.
Production — Volume of industrial production declined further in
December and the Board’s seasonally adjusted index was at 84 per cent
of the 1923-1925 average as compared with 89 in November. The decline
reflected chiefly a continued sharp curtailment of activity in the durable
goods industries. Steel ingot production averaged about 26 per cent of
capacity, output of automobiles and plate glass was reduced considera
bly, and production of lumber and cement also declined. Total output of
nondurable goods declined seasonally. There was a sharp decrease in
output at silk mills, and cotton consumption declined further. At woolen
mills and shoe factories, however, output was maintained, following a
considerable period of sharp decline. Activity at sugar refineries in
creased further. Mineral production in December, as in other recent
months, was at a high level. Output of crude petroleum and bituminous
coal declined seasonally, while anthracite production increased some
what. In the first three weeks of January output of steel and automo
biles increased somewhat from the extreme low levels reached in the
latter part of December.
Value of contracts awarded in December continued in about the
same volume as in the preceding three months. During this period
there was a decline in awards for privately-financed projects, reflecting
in large part further reductions in residential building, while publiclyfinanced work increased.
Employment — Factory employment and payrolls showed further
declines between the middle of November and the middle of December,
and employment at mines, on the railroads, and in the construction in
dustry also continued to decrease. The decline in the number employed
at factories was larger than in earlier months in industries producing
durable goods, and was particularly marked in the steel, machinery, and
automobile industries. For the nondurable goods industries as a group,
the decline in December was about the same as in each of the previous
three months, after allowance for seasonal changes. There was some
increase in employment at shoe factories and little change at plants pro
ducing tobacco products, while most other industries in this group
showed further decreases.
Distribution— Department store sales increased in December by
about the usual seasonal amount, and the Board’s adjusted index was
90 per cent of the 1923-1925 average as compared with 91 per cent in
November and an average of 93 per cent in the first ten months of the
year. Mail-order business and sales at variety stores showed somewhat
more than the seasonal increase, while sales of automobiles declined
substantially. Preliminary reports indicate that in the first half of Janu
ary sales at department stores were at about the same level as a year
ago. Railroad freight-car loadings continued to decline in December,
and in that month were 18 per cent lower than the average for the
first half of the year, making allowance for usual seasonal change.
Commodity Prices — Wholesale prices of basic commodities, after
declining sharply in the autumn, showed little change in December and
the first three weeks of January. Grains, cotton, print cloths, steel scrap,
and bituminous coal increased somewhat, while leather, rayon, and
woodpulp prices were reduced. Prices of a wide variety of finished in
dustrial products showed further declines, and livestock products con
tinued to decrease sharply.
Bank Credit— Excess reserves of member banks increased in the
four weeks ending January 19, from $1,010,000,000 to $1,370,000,000 and
were larger than at any time since May 1. The post-holiday decline in
money in circulation, which accounted for this growth of excess re
serves, was larger than the increase that occurred before Christmas.
The volume of loans at reporting member banks in 101 leading cities
declined sharply in the five weeks ending January 19, while their hold
ings of investments showed little net change. Declines occurred in loans
to security brokers and dealers and in commercial loans, which decreased
both in New York City and in other leading cities. Interbank balances
were built up during the period, while other deposits decreased some
what, reflecting largely the repayment of bank loans, partly offset by a
return flow of currency from circulation.
Money Rates and Bond Yields — The average rate on new issues
of 91-day Treasury bills continued in January at less than 1/8 of 1 per
cent, and yields on Treasury notes and bonds declined to new low levels
for recent months. Yields on the highest-grade corporate bonds also
declined somewhat, while those on the lower-grade railroad issues fGS<i.
@FedFRASER