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MONTHLY REVIEW Of Agricultural, Industrial, Trade and Financial Conditions in the Eighth Federal Reserve District Released for Publication On and After the Afternoon of January 30, 1931 J O H N S. W O O D , Chairman and Federal Reserve Agent FEDERAL RESERVE HE almost unbroken decline in industry and commerce in this district, which has been in progress since the fall of 1929, continued dur ing December and the opening weeks of January. A majority of available series of business statistics recorded decreases in December as contrasted with the preceding month, also with the corresponding period a year earlier. Production at manufacturing plants in virtually all lines declined in more than the usual seasonal volume in December, making that month the lowest in point of total output for the year, and the lowest for any December in more than a decade. In addition to decreased activities at industrial establishments, December was marked by a heavy reduction in production of bituminous coal in all fields of the district and smaller output in lead, zinc and other mining operations. Production statis tics for the year, completed by the December figures, do not make a favorable comparison with those of the preceding twelve months or the average in re cent years. In a large majority of wholesale lines investi gated, December sales fell below those of the pre ceding month, and showed sharp declines as com pared with the corresponding month in 1929. There was no noticeable deviation from the policy of pur chasing only sufficient goods for immediate needs which has been in effect for a number of months past. The volume of orders for forward delivery booked by the reporting firms was the smallest for any similar period in recent years. Due chiefly to seasonal influences, distribution through retail chan nels made a relatively better showing than through the wholesale outlet. Christmas shopping got an unusually backward start, as evidenced by the small volume of retail business in November, but gained momentum after the first week in December, with the result that sales for December showed more than the average increase over the preceding month, though recording a substantial decrease under the December, 1929, total. T As was the case earlier in the year, trade in the large centers of population made a relatively better C. M . STEW ART, Assistant Federal Reserve Agent BANK OF S T. J. V I O N P A P I N , Statistician LOUIS showing than in the rural areas and small towns. Crop failures due to the drought last summer and fall and the depressed prices of agricultural products heavily reduced purchasing power in the country, necessitating economies and conservation of cash resources. Employment conditions in both the in dustrial centers and the country during December, according to the Employment Service of the De partment of Labor, were less satisfactory than dur ing the preceding month, the number of employed in this district reaching the highest total for the year. Since the first of January a moderate increase in employment has taken place, though a surplus of workers still exists in all the chief lines of industry. Aggregate sales of department stores in the principal cities of the district in December were about one-half larger than in November, but 13.5 per cent smaller than in December, 1929. For the year 1930 sales of these stores fell 10.8 per cent be low the total of the preceding twelve months. Com bined sales of all wholesale and jobbing firms report ing to this bank were 28 per cent smaller than in November, and 19 per cent less than in December, 1929. According to the group of dealers supplying their statistics for publication in this report, auto mobile sales in December were slightly smaller than for the same month a year earlier, but 12 per cent larger than in November. Charges to checking ac counts were about 5 per cent larger in December than November, but about one-fourth less than in December, 1929. Total debits for the year were smaller by 17 per cent than in 1929. The amount of savings accounts on January 7 showed small de creases as compared with thirty days and a year earlier. The volume of freight handled by railroads operating in this district continued to decline dur ing the closing weeks of December with the result that total car loadings for 1930 fell sharply below those of the several preceding years. During the month decreases were shown in all classifications, but were most marked in seasonal commodities, notably coal and coke, which is accounted for partly by the unusually high temperatures prevailing through the period. The movement of grain and grain products was the smallest for any similar period in a number of years. For the country as a whole loadings of revenue freight in 1930 totaled 45,887,413 cars, against 52,827,925 cars in 1929, and 51,589,887 cars in 1928. The St. Louis Terminal Railway Association, which handles interchanges for 28 connecting lines, interchanged 156,424 loads in December, against 166,395 loads in November, and 187,464 loads in December, 1929. During the first nine days of January the interchange amounted to 47,502 loads, against 47,235 loads during the cor responding period in December, and 53,814 loads during the first nine days of January 1930. Passen ger traffic of the reporting roads decreased 24 per cent in December as compared with the same month in 1929. Estimated tonnage of the Federal Barge Line between St. Louis and New Orleans in Decem ber was 107,000 tons, against 83,408 tons in Novem ber, and 72,480 tons in December, 1929. The total tonnage in 1930 was 1,148,877 tons, against 1,293,971 tons in 1929, and 1,435,486 tons in 1928. Generally unsatisfactorily conditions were re flected in reports relative to collections during the past thirty days. In a majority of wholesale lines, payments were in relatively much smaller volume than a year ago and the average during the past decade. As has been the case since early fall, con siderable irregularity and spottiness was noted, both with reference to the various lines and localities. In the typical cotton producing areas, and generally through the south backwardness in settlements was complained of both by the retail and wholesale trade. Slow collections were the rule with retail interests in the large centers of population during December, but moderate improvement has taken place since the first of January, following the holi day trade. Time payment houses and other mer chants selling goods on the installment plan report no change from the unsatisfactory collection condi tions obtaining in recent months. Answers to questionaires addressed to representative interests in the several lines scattered through the district showed the following results: E xcellent G ood F air P oor December, 1930................% 12.7% 63.5% 23.8% November, 1930................ 10.0 65.0 25.0 December, 1929......... 1.4 24.3 61.4 12.9 Commercial failures in the Eighth Federal Re serve District in December, according to Dun’s numbered 131, involving liabilities of $10,609,767, against 92 failures with liabilities of $3,870,162 in November, and 113 defaults for a total of $4,935,058 in December 1929. In 1930 there were 1,517 failures with liabilities of $48,948,234, against 1,420 failures in 1929 with liabilities of $25,432,558 and 1,300 de faults in 1928 involving liabilities of $29,885,811. The average daily circulation in the United States was $4,823,000,000 against $4,528,000,000 in November, and $4,943,000,000 in December, 1929. M AN U FACTU RING AN D W H O L E S A L IN G Boots and Shoes — There was the usual con traction in volume of business from November to December, but the magnitude of the decrease was considerably larger than the average during the past decade. Total sales of the reporting firms in Decem ber were 40 per cent smaller than in November, and 4 per cent less than in December, 1929. The de crease in the yearly comparison was the smallest recorded for any month in 1930. Salesmen were later in getting on the road this year than is ordi narily the case, and orders booked so far this month are below a year ago. In the immediate past, how ever, improvement has developed, and in the case of several important firms indications are that the Jan uary volume will equal that of the same month in 1930. A further reduction in prices was recorded in early January, and the average now is from 8 to 10 per cent below a year ago. Stocks on January 1 were 14 per cent larger than thirty days earlier, and 18 per cent less than on January 1, 1930. Clothing — Continued mild weather during the last half of December and early January adversely affected sales of heavy apparel, both for men and women. Reordering of overcoats and women’s coats was reported in unusually small volume, and due to lateness of the season, indications are that the carry over will be larger than the average during the past several years. Ordering of clothing for delivery in the spring is on an extremely conservative basis, with prices playing an important part in the majority of transactions. The reporting clothiers reported the usual seasonal decline in sales from November to December, but the December total was about one half larger than for the same month in 1929. Drugs and Chemicals — Improvement in the movement of seasonal goods in this classification was offset by continued recession in demand for staple merchandise, and December sales of the reporting interests fell 3 per cent below November and 10 per cent under the December, 1929, total. Stocks on January 1 were 8 per cent and 3 per cent smaller, re spectively than thirty days and a year earlier. Dry Goods — December sales of the reporting firms were the smallest for the year, and the smallest for that particular month since 1923. The total for December was a fourth smaller than a year earlier, and 35 per cent less than the November aggregate. The downward trend was continued during the first two weeks of January, during which period sales were about a fourth less than at the same time in 1930. Part of the decrease in the yearly compari sons is accounted for by lower prices. Stocks on January 1 were slightly larger than a month eariler, but smaller by about one-fourth than on January 1, 1930. Electrical Supplies—A more active movement of seasonal merchandise, particularly radio materials, was reflected in a moderate gain in sales of the re porting interests in December as compared with November. As compared with a year earlier, how ever, the December total showed a loss of 39 per cent. Stocks on January 1 were 4 per cent and 8 per cent smaller, respectively, than thirty days and a year earlier. Flour — Production at the 12 leading mills of the district in December totaled 329,094 barrels, against 398,617 barrels in November, and 394,030 barrels in December, 1929. Stocks in all positions are unusually low for this time of year, but replen ishment is backward, buyers confining their commit ments to actual requirements. In St. Louis, stocks on January 1 were about 3.0 per cent smaller than on December 1, and 16.0 per cent smaller than on Jan uary 1, 1930. Furniture — The usual seasonal slowing down in business in this classification was emphasized by the generally depressed conditions, and December sales of the reporting firms were the smallest for any month in recent years. Since January 1 some improvement has developed, orders booked at the Chicago furniture show having exceeded expecta tions. The volume of sales in December was less than half as large as for the same month in 1929, and about one-fourth less than in November. Inven tories continued to recede, stocks on January 1 being 12 per cent smaller than on the same date in 1930. Groceries — Unfavorable weather, disappoint ing holiday trade volume and reduced purchasing power in the rural areas were influences in a further decline in business in this classification. December sales of the reporting firms were slightly below those of the preceding month and 13 per cent less than the December, 1929, total. Inventories are the smallest at this particular time in a number of years, stocks of the reporting interests on January 1 being 8 per cent less than on December 1, and 8 per cent smaller than on January 1, 1930. Hardware — The warm, open winter has mili tated against the movement of seasonal merchandise, and was accountable in part for a decline of 32 per cent in December sales of the reporting interests under the same month in 1929, and 15 per cent under the November, 1930, total. Stocks on January 1 were 9 per cent and 15 per cent smaller, respec tively, than thirty days and a year earlier. Iron and Steel Products — The usual slowing down in activities in the iron and steel industry occasioned by the holidays and inventory period was considerably more marked during the past thirty days than has been the case in recent years. Opera tions at mills, foundries, machine shops and other ferrous metal working plants during December re ceded from the low average level of November, and reached the lowest point recorded during the year. Only moderate betterment has taken place since January 1, many plants which had closed down in late December having failed to resume operations. Among all classes of consumers there was a disposi tion to await completion of inventorying and de velopments in general business conditions before making commitments. Purchasing was confined al most exclusively to an immediate requirement basis, this being true particularly of the railroads, the auto motive industry and other important consumers. There was a further contraction in the outlet through the building industry, somewhat greater than could be accounted for by seasonal influences. Fabricators of structural iron and steel reduced their working forces with completion of old work and ab sence of new lettings. Producers and distributors of sheets, plates and other rolled steel materials report purchasing for first quarter requirements the small est in more than a decade. In the immediate past some quicking in demand for sheets and plates has developed, coming mainly from miscellaneous users. Warm weather through December and early this month has militated against the movement of sea sonal commodities, notably stoves, heating appa ratus and tubular goods. Sales of these commodities during the last quarter of 1930, according to the re porting interests, were only slightly more than half as large as during the same period a year earlier. Prices of finished and semi-finished goods under went no marked change in either direction as con trasted with the preceding thirty days. Since Janu ary 1 the price of pig iron in this district has devel oped a firmer tone, though no change in actual quo tations has taken place. Scrap iron and steel, which closed at the low point of the year in December, remained unchanged during the first half of January. For the country as a whole, production of pig iron in December totaled 1,665,630 tons, the smallest in nine years, and comparing with 1,865,458 tons in November and 2,836,917 tons in December 1929. The year’s production amounted to 31,441,403 tons, against 42,270,138 tons in 1929 and 37,831,741 tons in 1928. Production of steel ingots in the United States during December totaled 2,007,774 tons, which compares with 2,234,482 tons in November and 2,903,279 tons in December, 1929. AUTOMOBILES Combined passenger car, truck and taxicab pro duction in the United States in December totaled 155,601,, against 135,752 in November, and 119,950 in December, 1929. According to dealers reporting to this bank, dis tribution of automobiles showed a good gain in December as compared with November, but contin ued below a year ago. The decrease in December as compared with the same month in 1929, however, was much smaller than had been the case with ear lier months in 1930. Aggregate sales of these deal ers in 1930 were about one-fifth smaller than in 1929, and 8.0 per cent less than the average during the past six years. The increase in sales from November to December reversed the usual seasonal trend of recent years, and was accounted for in a large measure by the very small volume recorded in November. In both the month-to-month and yearly comparisons, ^relatively better showing was made by dealers in the large centers of population than in the smaller towns and rural areas. Dealers generally through the south reported disappointing results, particularly in the typical cotton producing sections. Crop shortages and the low price of farm products are adversely affecting the volume of sales, and there is a general disposition to recondition cars to make them serviceable as long as possible. Prospec tive purchasers are in many instances awaiting the automobile shows and the introduction of new models announced by several important manufac turers before filling requirements. Business in re pair parts and accessories continued fairly active during December, with sales about on a parity with the preceding month and a year ago. Purchasing of cars by dealers continues on a hand-to-mouth basis, and inventories at the end of the year were the smallest for any similar period in more than a half decade. December sales of new passenger cars by the reporting dealers were about one per cent small er than for the same month in 1929, and 12.0 per cent larger than the November total. Stocks of new cars in dealers’ hands on January 1 were 5.0 per cent smaller than on December 1, and only slightly more than half as large as on January 1, 1930. Special efforts made to reduce inventories of used cars resulted in a further reduction in stocks on hand, the total at the end of December being at the lowest point of the year, and about 10.0 per cent less than at the corresponding period a year earlier. A reduction in tire prices was announced by several leading makers in early January. Deferred payment sales of dealers reporting on that detail constituted 51.0 per cent of their total sales in December, against 49.0 per cent in November and 53.9 per cent in De cember, 1929. RETAIL TRADE The condition of retail trade is reflected in the following comparative statement showing activity at department stores in leading cities of the district: N et sales com parison Stocks on hand Stock turnover D ec. 1930 12 months ending D ec. 31, 1930 Jan. 1, to com p, to D ec. 31, 1930 to com p, to D ec. 31, D ec. 1929 same period 1929 D ec. 31, 1929 1930 1929 — 9.9% Evansville ... ......— 2 0.5 % 2.11 2.42 + 1.5% L ittle R ock. .......— 23.6 — 14.3 2.53 2.65 — 17.5 — 10.9 Louisville ... .......— 16.2 2.94 3.39 + 3.4 M em phis ........... — 25.7 — 16.1 — 9.9 3.11 3.46 .......— 26.5 — 6.0 2.67 2.84 — 11.5 ....... — 8.0 — 8.2 — 6.5 3.98 4.18 Springfield, M o..— 15.0 — 9.4 1.80 1.71 — 19.8 8th District........ — 13.5 — 10.8 — 7.1 3.50 3.74 N e t sales comparison Stocks on hand D ec. 1930 com p, to N ov. 1930 com p, to D ec. 1929 N ov. 1930 D ec. 1929 N ov. 1930 M en’ s furnishings........... .— 9 .1 % — 26.0% + 5 4 .2 % — 10.7% B oots and shoes.................— 19.9 — 13.0 + 11.7 — 14.6 Department Store Sales by Departments — As reported by the principal department stores in Lit tle Rock, Louisville, Memphis, and St. Louis. Percentage increase or decrease D ec. 1930 com pared to D ec. 1929 N et sales Stocks on hand for month at end o f month P iece g ood s..............................................— 22.1% — 12.8% — 6.6 R eady-to-w ear accessories................. .— 16.9 W om en and misses’ ready-to-wear..— 16.7 — 16.8 M en’ s and boys’ w ear......................... — 19.2 — 8.6 H om e furnishings................................. — 22.3 — 7.0 BUILDING The dollar value of permits issued for new con struction in the five largest cities of the district in December was approximately double that of Novem ber, and 7 per cent larger than in December, 1929. For 1930 the total value of permits issued in these cities was $32,648,000, which compares with $49,214,000 in 1929, and $71,828,000, the average during the past eight years. According to statistics compiled by the F. W . Dodge Corporation, contracts let in the Eighth Federal Reserve District in Decem ber amounted to $16,102,809 which compares with $15,529,723 in November, and $17,387,230 in Decem ber, 1929. For the year 1930 contracts let totaled $326,027,423 against $403,963,124 in 1929, and $395,000,000, the average during the preceding five years. Production of portland cement for the country as a whole during December totaled 8,480,000 barrels, against 11,098,000 barrels in November, and 8,498,000 barrels in December, 1930. Building figures for December follow : E vansville .. Little R ock L ouisville .. M em phis .... St. Louis.... N e w Construction Perm its *C ost 1930 1929 1930 1929 362 169 $ 58 $ 57 25 37 125 425 35 47 90 175 289 71 102 628 988 211 163 2,051 D ec. totals 504 705 $2,426 $2,273 959 1,271 2,244 N ov. totals 779 2,246 1,283 O ct. totals 973 1,242 * I n thousands o f dollars (000 om itted ). Repairs, etc. Perm its * to st 1930 1929 1930 1929 31 13 $ 15 $ 7 41 8 40 32 19 7 14 17 49 73 72 156 222 219 256 363 497 430 704 341 632 968 $ 325 408 462 $491 781 1,392 POSTAL RECEIPTS Returns from the five largest cities of the dis trict show an increase in combined postal receipts for the final quarter of 1930 of 17 per cent over the preceding three months, but a decline of 87.1 per cent as contrasted with the last quarter of 1929. De tailed figures follow : D ec. 31, 1930 Evansville ....$ 162,000 L ittle R ock.... 224,000 Louisville ...... 708,000 618,000 M em phis ...... St. L ou is........ 3,294,000 T otals ............ $5,006,000 For Quarter Ending Sept. 30, June 30, D ec. 31, 1930 1930 1929 $ 157,000 $ 168,000 $ 187,000 234,000 212,000 245,000 612,000 683,000 805,000 541,000 581,000 788,000 2,735,000 3,023,000 3,629,000 $4,279,000 $4,667,000 $5,654,000 j ) ec 19 3 0 com p, to D ec. 1929 — 13.4% — 8.6 — 12.0 — 21.6 — 9.2 — 87.1 CONSUMPTION OF ELECTRICITY Public utilities companies in the five largest cities of the district report consumption of electric current by selected industrial customers as being 6 per cent less than in November and 7 per cent smaller than in December, 1929. Except in the case of a limited number of industries affected by season al influences, decreases in both comparisons were general in all lines. Detailed figures follow : N o. of D ec. N ov . C ustom - 1930 1930 ers * K .W .H . * K .W .H . Evansville .... 40 1,726 1,728 L ittle R ock.. 35 1,250 1,421 L ouisville ..... 85 5,595 6,353 M em phis ...... 31 1,710 1,868 St. L ou is......155 13,049 13,386 D ec. 1930 com p, to N ov. 1930 — 0.1% — 12.0 — 11.9 — 8.6 — 2.5 D ec. D ec. 1930 1929 com p, to * K .W .H . D ec. 1929 1,538 + 1 2 .2 % 1,521 — 17.8 5,723 — 2.2 1,656 + 3.3 14,676 — 11.1 Totals .......... 346 23,330 * I n thousands (000 om itted ). — 5.8 25,114 24,756 — 7.1 AGRICULTURE Taken as a whole weather conditions in this district during the past thirty days were favorable for agricultural activities. Temperatures during December and early January were above normal, and with clear skies, farmers were able to complete the final stages of harvesting and housing late crops. Routine farm work has for the most part been brought well up to the seasonal average, and in some sections, notably in the south, plowing for spring crops has made fair headway. As had been the case since last spring, precipitation throughout the district was greatly below normal. Lack of rain fall in many localities has retarded plowing, and in the winter wheat areas there are increasing com plaints of dry soil conditions, particularly where the effects of last year’s drought were most acutely felt. In some counties stock water supplies are again running low, and at the middle of January general rains and snow were needed to produce most favorable results. While conditions were auspicious for moving farm products to market, receipts at terminal points were below expectations, due to a disposition on the part of farmers to hold their stocks for higher prices. This was true particularly of corn, oats and hay, which are being consumed in unusually large quan tities where produced, or shipped direct to sections where shortage exists. Under pressure of liquida tion, cereal values declined sharply during late De cember. The July wheat option declined to the low est point in more than a quarter of a century. Corn receded to the lowest level since 1923; oats since 1913 and rye since 1897. H og prices also recorded a new low on the present recessionary movement, and further declines were sustained by cattle and sheep. Cotton fluctuated over a narrow range, only slightly above the low point of the season, which was reached at the middle of December. Winter Wheat— Despite handicap of the severe drought of July, August and early September, farmers in this district seeded a greater acreage of wheat last fall than in the fall of 1929. According to the preliminary estimate of the U. S. Department of Agriculture, the area seeded in states entirely or partly within the Eighth District was 6,332,000 acres, an increase of about 3.0 per cent as compared with the year before. In the three leading wheat states, Illinois, Indiana and Missouri, the December condition of the crop was higher than the 10-year average (1919-1928) and about the same as at the corresponding period in 1929. While adequate snow covering was lacking in virtually all sections, there was unusually little disturbance to the crop from alternate freezing and thawing, due to the mild tem peratures. Corn — Under ideal weather conditions, husk ing and cribbing of corn was completed and fields are generally well cleaned up. Latest returns indi cate a wide variance in quality, with much poor grain showing up as an aftermath of the prolonged drought during the growing season. In some sec tions there are complaints of corn moulding in cribs. Generally there is a scarcity of prime seed corn for next season’s planting. Demand for corn for feeding purposes has been well sustained, and farmers with surplus stocks have been able to obtain more favor able prices by selling on the farm than shipping to primary markets. The movement to market, how ever, has been in fair volume, though checked to some extent in late December by the decline in prices. Fruits and Vegetables — Yields in states of this district of fruits and vegetables and prices realized on these crops by producers in 1930 fell considerably below the preceding year and the 5-year average. An exception to the rule of smaller output was white potatoes, total production of which in 1930 was 28.459.000 bushels against 27,061,000 bushels in 1929. The total value of the 1930 crop, however, fell $7,110,000 below that of the preceding year. Apple production in states of the district in 1930 totaled 12.935.000 bushels with value of $17,033,000 against 14,280,000 bushels in 1929, with value of $21,390,000. There were 13,906,000 bushels of sweet potatoes produced in these states in 1930, with value of $12,711,000 against 17,741,000 bushels in 1929, with value of $17,175,000. Live Stock — The condition of live stock gen erally through the district at the middle of January was reported good, the open winter to that date hav ing been conducive to health among herds. Except; ing in a few scattered localities, cattle and lamb feeding is considerably smaller than a year ago, and fewer cattle and sheep are moving from stockyards to the farm. The unfavorable feed and credit situa tion, coupled with unprofitable results of most feed ers the year before account in a large measure for smaller feeder operations this season. The U. S. Department of Agriculture’s pig sur vey shows an increase of 2.4 per cent in the fall pig crop of 1930 over that of the preceding year in the Corn Belt States. Combined spring and fall pig crops in the United States last year totaled about 4 per cent less than in 1929. Fall conditions were favorable, and the average number of fall pigs per litter was larger in the country as a whole and the Corn Belt states than in 1929. Increases of 9.4 per cent and 12.2 per cent, respectively, are indicated for the number of sows bred to farrow next spring. Receipts and shipments at St. Louis as reported by the National Stock Yards, were as follow s: R eceipts Shipments D ec. N ov. D ec. D ec. N ov. Dec. 1930 1930 1929 1930 1930 1929 64,410 55,956 55,073 Cattle and calves........ 99,616 87,891 85,708 H ogs .............................331,465 273,429 317,662 269,970 223,734 234,619 H orses and m ules...... 2,336 2,208 4,591 2,384 1,847 4,675 Sheep ............................ 35,503 29,808 31,319 9,089 7,289 12,680 Cotton — Production of cotton in the Eighth District in 1930, according to the Department of Agriculture, amounted to 2,531,000 bales, with value of $120,222,500, which compares with 3,306,000 bales in 1929, with value of $271,092,000 and an 8-year average (1923-1930) of 2,765,000 bales. The past thirty days have been favorable for harvesting the small amount of cotton left in the fields, also for preliminary work for the next crop. Relatively little plowing has been accomplished, however, and due to the low price of cotton and crop shortages last season, planting programs for this year are very indefinite. Scattered reports relative to acreage indi cate generally smaller plantings than last year, but it is too early yet for any trustworthy information on acreage. Demand for cotton, both for domestic consumption and export, continued quiet, and pro ducers are still disposed to hold their stocks for more favorable markets. Prices fluctuated over a narrow range, only slightly higher than the low point of the season, reached at the middle of Decem ber. In the St. Louis market the middling grade ranged from 8.65c to 9c per pound between Decem ber 16 and January 15, closing at 8^4c on the latter date, which compares with 8.65c on December 16, and 1634c on January 15, 1930. Movement from farms to market continues in small volume. Total receipts at Arkansas warehouses from August 1 to January 9 were 771,089 bales, against 1,264,000 bales for the corresponding period a year ago. Stocks in these warehouses on January 9 totaled 351,229 bales, against 376,408 bales on December 12, and 356,678 bales on the corresponding date in 1930. Tobacco — Resumption of activities at the tobacco markets following the holidays has been marked by better demand and generally higher prices. Warehouse capacity in the burley district has been taxed to accommodate offerings, which, however, have been readily absorbed by domestic consumers at prices above those prevailing earlier in the season. Movement of the burley crop has been rapid and at the middle of January approxi mately 195,000,000 pounds or 70 per cent of the crop had been sold. The air-cured and green river markets continue well supplied, with a strong, active demand for everything offered. Medium and better grades of air-cured lugs and common leaf have advanced $1 to $2 per hundredweight as compared with prices prior to the holidays. In the green river district some grades have doubled in price, leaf which before the holidays sold at from $6 to $10 now bringing from $12 to $18 per hundredweight. Less satisfac tory conditions obtain in the fired-dark district trib utary to Paducah, Ky., prices being below expecta tions. In the Hopkinsville, Clarksville and Spring field markets, recent sales were at slightly higher prices, due to improved quality of offerings rather than increased demand. A number of important manufacturing interests are purchasing direct from farmers, possibly with the view of obtaining higher quality tobacco than that being offered on the looseleaf floors. At the middle of January about 30 per cent of the western district crop and 25 per cent in other dark fired sections had been sold. , Commodity Prices — Range of prices in the St. Louis market between December 15, 1930 and Janu ary 15, 1931, with closing quotations on the latter date and on January 15, 1930: close W heat H igh L ow Jan. 15. 1931 Jan. 15. 1930 M ay ..................... per bu..$ .81 $ .78% $ .80 $1.27lA July ....................... “ .69*4 .6034 .66V2 1.28& N o. 2 red winter “ .83*4 .78 $ .81 @ .82 $1.36 @ 1.36*4 N o. 2 hard.......... “ .79 .75 .7 8 @ .79 1.23 @ 1.23*4 Corn M ay ..................... “ .76 .66*4 .7254 .95J4 July ....................... “ .74*4 .68 .7354 .97*6 N o. 2 m ixed........ “ .71*4 .62 .6 9 @ .70 . 8 7 @ .88 N o. 2 w h ite........ “ .74 .6 4 % .7 0 @ .71 .8 8 * 4 ® .89*4 Oats N o. 2 white........ “ .36 .33 % .3 5 ® J 5*4 .48 @ .48% Flour Soft patent........per bbl. 5.00 4.70 4.7 5 @ 5 .0 0 6.50 @ 6.75 Spring patent...... “ 4.80 4.25 4.25 @ 4 .4 0 6.50 @ 6.60 Middling cotton....per lb. .09 .0865 .0854 .16*4 H o gs on h o o f........per cwt. 8.40 6.00 6.1 0 @ 8 .3 0 8.10 @ 10 .0 0 F IN A N C IA L D em and fo r fu n d s g e n e r a lly s h o w e d a d e c re a se o f 1 .7 p e r c e n t a s c o n tr a s te d w it h th ro u g h o u t th is D e c e m b e r 17 , 1 9 3 0 . D e p o s i t s in c re a se d 0 .7 p e r c e n t d is tr ic t c o n tin u e d q u ie t d u r in g th e p a s t t h ir ty d a y s , b e tw e e n D e c e m b e r 17, 1 9 3 0 a n d J a n u a r y and interest rates remained at low levels. Requirements of manufacturing and mercantile interests and on the latter date were L6 Per cent Iess than on January 15, 1930. Composite statement follow s: Ji93i 4, showed somewhat more than the usual seasonal decline, and the call for financing stocks, bonds and other investments by the public was in considerably *Dmo17, *Jmo1S' m s^ T ^ ^ ^ i S ,w 0bSSd2^i9»,726 $197,879 s m a lle r v o lu m e th a n a t th e c o r r e s p o n d in g p e rio d a An other lcans and discounts..... 269,678 y ear and tw o y ears a go . T h e r e w a s th e u s u a l a u g - m e n te d d e m a n d fo r fu n d s a t th e en d o f D e c e m b e r Investments ^ discotmts............. $469,404 Total investment8................... m en ts. Reserve balance with f . r . bank.. 45,054 Cash in vault...,................................ 8,163 ing effect on the situation as a whole, amounting largely to a shifting of credits. D^ f dsemand deposit3............. 371>m 236^ } 22\f94 3 25 *251.016 279,452 283,640 $477,331 $534,656 U; s* Government securities..... 37,190 Other securities........................... 132,456.130,652 preparatory to meeting interest and dividend payT h e s e d is b u r s e m e n t s , h o w e v e r , h a d n o la s t’ , 14, 1931 112,021 45,840 46,272 8,567 5,759 373>868 227 390,761 L iq u id a t io n b y c o m m e r c ia l a n d in d u stria l b o r . , in c o n s id e r a b le v o lu m e , b u t rath er . « < .1 r irr e g u la r , b o t n W ith re fe r e n c e t o th e «. . . ittii i i • i 1 a n d lo c a litie s . W h o le s a le r s a n d jo b b e r s *,. , j t 1 j j .1 x c itie s r e p o r te d J a n u a r y 1 s e t t le m e n t s Total deposits.................................. $608,113 $603,895 $618,136 Bills payable and rediscounts with Federal Reserve Bank................. 753 3,214 5,198 *In thousands (000 omitted). t Increase due to substitutions for closed banks. These 26 banks are located in St. Louis, Louisville, Memphis, Little Rock, and Evansville, and their resources represent 53.1 per cent of the resources of all member banks in this district. satisfactory in the main, permitting of substantial reductions in loans of these interests at the banks. Liquidation of loans by country banks with their city correspondents was up to expectations, particularly in sections where tobacco and cotton are the principal crops. A scattered demand among country banks for commercial paper and other investments Debits to ^dividual A c c o u n t s -T h e following table &ives the total debits charSed hy banks to checking accounts, savings accounts, certificates of dePoslt “ counts and trust accounts of individuals, firms>corporations and U. S. Government in leading cities of the district Charges to accounts of banks are not ” lc^u^ec|- row ers w as .. j jt S p o tte d a n d 1 f. Severa l lin e s .1 1 in th e la r g e , , . . ~ h a s b e e n in e v id e n c e sin c e th e first o f J a n u a ry . C o m - mitments of grain and flour milling interests showed , 1 jlittle c h a n g e a s c o m p a r e d w it h th e p r e c e d in g m o n th , but were in considerably smaller volume than at this time a year ago. Reflecting smaller credit demand, loans of the reporting member banks declined at the middle of January to the lowest point in more than three years, the total, $469,404,000 on January 14, comparing with $534,656,000 on the corresponding date in 1930. Deposits of these banks, which had advanced in late December to the highest point of the year, receded in early January. Their investments continued the irregularly upward trend which h a s b e e n in e ffe c t sin c e la s t s u m m e r . a ll m e m b e r b a n k s fr o m averaged lo w e r th a n th e *Nov. *Dec. 1930 1929 p r e c e d in g t h ir t y d a y s , a n d w e r e s u b s ta n tia lly le s s th a n a t th e c o r r e s p o n d in g p e r io d a y e a r a g o . Eastock Ya”ds,*n?.$tl36,638 $ 33,496 $ 41,613 El Dorado, Ark.... Evansville, ind.... 6,009 6,281 25,888 23^21 8,979 30,698 + 9.4% —12.0% — 4.3 + 10.1 —33.1 — 15.7 's ’,382 — 5.1 —29.7 591643 —2iJ —4^0 iooisof —10.4 —Isi 13,494 —1I 1 —u i 572,’145 825J42 + 13.S —21J 14,653 14,264 15,333 + ' 2.'7 - 4.4 **TexaArkn-Tex... 10,684 10,132 14,618 + 5.4 —26.9 Totai, ........$i,094,076 $1,037,915 $1,447,496 + 5.4 —24.4 **Inchldes one bankinTexarkana, Texas, not in Eighth District. FEDERAL RESERVE OPERATIONS G?elnvUie,h’ Miss'.'.'.'. S«feaRo4rkArk."; 321208 Memphis!’ ptaHitaff; a&":: 7;s89 st^Louis^Mol'.''^ 649,497 ' 4,045 321618 hIimo l;o43 D u r i n g D e c e m b e r th e F e d e r a l R e s e r v e B a n k o f L o u is d is c o u n te d fo r 2 4 4 m e m b e r b a n k s , a g a in s t *n N o v e m b e r a n d 2 0 5 in D e c e m b e r , 1 9 2 9 . The d is c o u n t ra te o f t h is b a n k w a s r e d u c e d fr o m 3 ^ 3 p er c e n t, e ffe c tiv e J a n u a r y 8 . A t S t. L o u i s b a n k s c u rr e n t in te r e s t r a te s w e r e as fo llo w s : Dec. 1930 comp, to Nov. 1930 Dec. 1929 B o r r o w in g s o f th e F e d e r a l r e s e r v e b a n k d u r in g Dec. 1930 to C h a n g e s in th e p r in - cip a l a s s e ts a n d lia b ilitie s o f th is in s titu tio n a p p e a r P r im e c o m m e r c ia l p a p e r, 2 ^ 4 t o 5 p er in th e f o llo w in g t a b l e : c e n t ; c o lla t e r a l lo a n s , 4 to 6 p e r c e n t ; lo a n s se c u r e d 1_ 1 _ . b y w a r e h o u s e r e c e ip ts , i y 2 t o A y 2 p e r c e n t ; in te r - *jan. 15, *Dec. 15, *j,an. 15, 1931 Bills discounted ~ i 1930 ,296 ' ~ 4~ 1930 9~ $ !m 48 b a n k lo a n s , 4 t o 6 p e r c e n t a n d c a t t le lo a n s 5 t o 6 ua ls.b° s e ^ p e r Cent. Total bills and securities $43,068 $47,836 $48,445 84,184 90,283 F. R. Notes in circulation............................ 82,331 Total deposits................... ........ .....................71,399 71,156 8i,696 Ratio of reserves to deposits *innthouka?dsN(ooo o m S ) es 75*2% 74'6% C o n d itio n o f B a n k s — L o a n s a n d d is c o u n ts o f th e r e p o r tin g m e m b e r b a n k s o n J a n u a r y 14, 1 9 3 1 , (C o m p ile d J a n u a ry 2 3 , 1 9 3 1 ) 24,418 19:266 74,8% BUSINESS CONDITIONS IN THE UNITED STATES PRODUCTION — Industrial production was further reduced during December, and Federal Reserve Board’s index, which makes allowance for usual seasonal changes, showed a decline of over two per cent. Output of steel and iron, textiles, petroleum, cement, and copper was substan tially curtailed. Activity in meat packing plants and at an thracite mines increased in December, and in the automo bile industry there was an increase in output reflecting the introduction of new models. After the turn of the year, automobile output increased further, and steel plants were December, 1929. The decrease reflecting in part the decline in wholesale prices. WHOLESALE PRICES — Wholesale prices of com modities declined sharply in the first half of December while in the following four weeks average fluctuations were relatively small. For the month of December as a whole, there were large decreases in prices of corn, hogs, cotton, hides, and lumber, while prices of wheat, beef, and silk averaged somewhat higher than in November. During the first two weeks in January, prices of corn, sugar, and silk CURVE 2000r 1 MILLIONS OF DOLLARS CURVE 2 ■ 6 R ESEF tVE BANK C R E D IT AND MON IEY IN C IR CULATIO N Reserve Bank Credit fj i 1500 * 5500 i J \ u 1000 Money m Ciirculation i 500 1926 In d ex num ber o f production of manufactures and minerals combined adjusted for seasonal variations (1923-1925 a v e r a g e s 100). Latest figure, Decem ber, 82. more active. Construction contracts awarded during De cember were in about the same volume as in November, according to reports of the F. W. Dodge Corporation. There were slight declines partly seasonal in nature, in con tracts for residential and commercial construction, while public works and utility awards increased somewhat. EMPLOYMENT AND WAGE PAYMENTS — Em ployment in manufacturing industries was reduced further by 2.5 per cent between the middle of November and the middle of December, and factory payrolls also declined. The largest reductions in working forces were in the can ning, lumber, steel, and wearing apparel industries. There was little change in employment in railroad car shops, and in cotton and silk mills, while in the automobile, meatpack ing and paper and printing industries working forces were increased slightly. In early January, following year-end inventory periods, reports indicate increased employment in certain industries, particularly automobiles, steel, and rail roads. DISTRIBUTION — Sales of department stores in creased in December by slightly less than the amount which is usual for the soliday season, according to preliminary reports to the Federal reserve banks. In December, as in earlier months of the year, the volume of sales probably reflected the influence of declining retail prices. Distribu tion of commodities by freight showed a further decline for the month of December as a whole. Value of American exports to foreign countries was smaller in December than in November, and approximately 35 per cent below that of ^ i [4500 1928 1929 M onthly averages o f daily figures. Latest figures are averages of first 19 days in January. increased, and the price of wheat in American markets re mained fairly stable. Silver prices reached new low levels. BANK CREDIT AND MONEY RATES — Loans and investments of reporting member banks declined in the four weeks period ending January 14, reflecting liquidation of securities loans, as well as a reduction in “all other” loans and investments. Changes in the position of reserve banks in recent weeks reflected largely changes in the demand for currency. In December this demand increased more than is usual for the season owing to the withdrawal of cash by banks and by the public in districts where there were im portant bank failures. In the two weeks after Christmas the return flow of currency from circulation was smaller than the usual seasonal amount and the result was that money circulation, which during the larger part of 1930 had been in considerably smaller volume than in 1929, in Janu ary, 1931 was above the level of a year ago. In the followFE R C E H 7 In d ex of U nited States Bureau of L abor Statistics (1 9 2 6 = 1 0 0 , base adopted b y B ureau). Latest figure, Decem ber, 78.4. 1927 5000 PERCENT M onthly rates in the open market in N ew Y o r k : Comm ercial paper rate on 4 to 6 m onth paper. A ccep tance rate on 90-day bankers* accept ances. Latest figures are averages o f first 20 days in January. ing two weeks the return flow of currency was somewhat larger than usual, indicating a return of part of the extra currency which had been called into use in December. Money rates in the open market continued at low levels during December, and declined further in the first half of January. The discount rate at the Federal Reserve Bank of New York was reduced to two per cent on December 24, and in the following three weeks the rate at the Federal Reserve Bank of Boston was reduced to 2 ^ per cent and rates at the Federal Reserve Banks of Cleveland, St. Louis, Chicago, Atlanta, and San Francisco to 3 per cent.
@FedFRASER