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MONTHLY REVIEW O f Agricultural* Industrial, Trade and Financial Conditions in the Eighth Federal Reserve District Released for Publication On and After the Morning of January 30, 1932 HLN S. W O O D , Chairman and Federal Reserve Agent FEDERAL RESERVE ECEMBER was marked by a further reces sion in the general level of trade and indus try in the Eighth District, the closing weeks of that month witnessing the lowest point reached in the present depression. With the excep tion of department stores and some specialized branches of the retail distribution affected by the Christmas holiday trade, all lines of industry and merchandising investigated by this bank showed declines from November to December, and univer sally there were decreases as contrasted with the same period in 1930 and the average during the past several years. Similarly the record for 1931 discloses a substantial contraction in the volume of business as compared with the preceding twelve months, and the average during the past decade. The increase in volume of retail trade from Novem ber to December was somewhat greater than usual, due, however, more to the poor showing made in November than to an extraordinary demand for merchandise. As has been the case throughout the present season, the volume of distribution of a broad variety of goods was held down by the un seasonably high temperatures. D The output of manufacturers showed more than the usual seasonal contraction, particularly so in case of iron and steel, lumber, and the entire cate gory of building materials. Distribution of automo biles decreased sharply in December as compared with November, and for the fourth consecutive month, was smaller than during the corresponding period a year earlier. There was also a decrease in production of bituminous coal, lead and zinc and other mining products. Following the advance in prices of grain and other farm products of midOctober, a reaction downward took place in Novem ber, and extended through December, eliminating a considerable part of the advantage gained. The price of pig iron declined $1 per ton, iron and steel scrap, from $1 to $3 per ton, and there were down ward revisions of greater or lesser degree in a num ber of other important raw and finished materials. C. M . STEW ART, Assistant Federal Reserve Agent BANK J. V I O N P A P IN , Statistic OF S T . L O U I S An increase in unemployment of somewhat greater than the usual seasonal proportions took place in December. In all sections of the district the sur plus of farm labor is larger than at any similar period in recent years. Since January 1 noticeable improvement has taken place in several of the most important manu facturing and wholesaling lines, among them boots and shoes, dry goods, hardware, drugs and chemi cals, and groceries. While ordering is almost ex clusively confined to goods for immediate or reason ably prompt delivery, the character of the buying indicates actual needs for merchandise. Manufac turers of iron and steel and other commodities of the heavier and more permanent sort report an in creased volume of inquiries, and specifications on goods previously acquired are being released more freely than in December. Reports from the retail trade relative to results of special sales conducted since the holidays reflect rather spotted conditions. Failure to achieve greater success in many such sales was due partly to the incomplete assortments and the narrow variety of goods exhibited. The inventorying period developed generally small stocks in the hands of both retail and wholesale interests and manufacturers. In the immediate past there has been more evidence of a disposition to replenish and replace stocks than noted in a num ber of months. As reflected in sales of department stores in the leading cities of the district, the volume of re tail trade in December was 48.3 per cent greater than in November, but 12.6 per cent less than in Decem ber, 1930. For the year, sales of these stores showed a decrease of 12.7 per cent under the 1930 total. Com bined sales of all wholesaling and jobbing firms reporting to this bank were 37 per cent smaller in December than November and 19 per cent less than in December, 1930; for 1931 aggregate sales of these firms fell 16 per cent below the total for the preceding twelve months. The value of permits issued for new buildings in the five largest cities of the district in December was more than five and one-half times larger than in November, but 18 per cent less than in December, 1930; for the year the total value was approximately one-fourth smaller than in 1930, and 45 per cent under the average during the past nine years. Construction contracts let in the Eighth District in December were about twice as large as in November and 34 per cent less than in December, 1930. The total in 1931 was 42 per cent smaller than in 1930 and 48 per cent less than the average during the past seven years. Debits to checking accounts in December were one-fifth smaller than in November and 13 per cent less than in December, 1930; the total for 1931 was smaller by slightly more than one-fifth than in 1930. The amount of savings accounts in selected banks de creased slightly between December 2 and January 6, and on the latter date were 6 per cent less than on the corresponding date in 1931. The steady decline in the volume of freight handled by railroads in this district, which began early in the fall, continued through December with the result that their total car loadings for the year fell sharply below those during the preceding sev eral years. Since the first week of January a moder ate increase in loadings was reported, but the vol ume was still considerably below that of the corre sponding period a year and two years earlier. The unbroken mild weather tended to hold down the movement of seasonal commodities, particularly coal and coke. For the country as a whole loadings of revenue freight in 1931 totaled 37,272,371 cars, against 45,877,974 cars in 1930 and 52,872,927 cars in 1929. The St. Louis Terminal Railway Associa tion, which handles interchanges for 28 connecting lines, interchanged 127,313 loads in December, the smallest for any month in more than ten years, and comparing with 132,895 loads in November and 156,424 loads in December, 1930. In 1931 there were 1,976,645 loads interchanged, against 2,356,983 loads in 1930 and 2,843,203 loads in 1929. During the first nine days of January the interchange amounted to 40,199 loads, against 40,976 loads dur ing the corresponding period in December, and 47,502 loads during the first nine days of January, 1931. Passenger traffic of the reporting roads in December decreased 38 per cent as compared with the same month in 1930. Estimated tonnage of the Federal Barge Line between St. Louis and New Orleans in December was 166,000 tons, against 86,348 tons in November, and 107,507 tons in Decem ber, 1930. Tonnage handled during 1931 totaled 1,168,296 tons, against 1,149,374 tons in 1930, and 1,292,881 tons in 1929. Reports relative to collections reflect little change from the general status which has existed during the past several months. January settle ments with wholesalers in the leading distributive centers compare favorably as a whole with the cor responding period last year, though considerable irregularity exists, and actual credit losses are large as compared with the average during the past decade. In lines dealing in merchandise for ordi nary consumption, collections are much better than in the case of the heavier and more permanent clas sifications. In the cotton, rice and tobacco areas pay ments are not up to the seasonal level, due to low prices of these products and a disposition on the part of farmers to hold for more favorable markets. City retailers report payments in December back ward, but note some improvement since the first of this year. Answers to questionnaires addressed to representative interests in the several lines scat tered through the district show the following re sults : E xcellent December, 1931......... 2.0% November, 1931......... 0 December, 1930......... 0 G ood Fair Poor 21.4% 18.5 12.7 56.2% 67.5 63.5 20.4% 14.0 23.8 Commercial failures in the Eighth Federal Re serve District in December numbered 168 involving liabilities of $4,786,681, against 117 failures in November with liabilities of $3,357,116, and 131 de faults for a total of $10,609,767 in December, 1930. In 1931 there were 1,676 failures with liabilities of $41,037,704 against 1,517 failures involving liabili ties of $48,948,234 in 1930 and 1,420 defaults for a total of $25,432,558 in 1929. The average daily circulation in the United States in December was $5,611,000,000 against $5,518,000,000 in November and $4,823,000,000 in December, 1930. M AN U FACTU RIN G AN D W H O L E S A L IN G Boots and Shoes — December sales of the re porting interests were 17 per cent smaller than for the same month in 1930, and 51 per cent below the November, 1931, total. For the twelve months ended December 31 aggregate sales were 9.4 per cent smaller than in 1930. Stocks on hand on Janu ary 1 were 4.6 per cent larger than a month earlier, but 13.6 per cent smaller than on January 1, 1931. The decrease in the month-to-month sales compari son is seasonal in character, and about the same as the average during the past several years. December is normally the most inactive month in the industry in this district. Since January 1 there has been a well defined pick-up in ordering. Buying is well distributed through all lines of shoes as well as geographically. Factory operations were at approxi mately 75 per cent of capacity, and at a slightly higher rate than a year ago. Clothing — Continued warm weather through out the trade territory and uncertainty relative to prices were among the influences responsible for a decrease in December sales of the reporting firms of 62 per cent as compared with November and of 36 per cent as contrasted with December a year ago. The movement of heavyweight apparel was consid erably below the seasonal average. Ordering for spring and summer consumption is backward. The trend of prices was downward. Drugs and Chemicals — A further decline in the volume of business took place in this classification in December. Sales of the reporting firms for that month fell 8 per cent below November, and were smaller by approximately one-fifth than in Decem ber, 1930. Decreases in the yearly comparison were most pronounced in seasonal goods and heavy drugs and chemicals used by the general manufacturing trade. Inventories continue to decline, stocks on January 1 being 4 and 10 per cent smaller, respec tively, than thirty days and a year earlier. Dry Goods — December sales of the reporting firms were 14 per cent less than for the same month in 1930, and 39 per cent under the November, 1931, total. For 1931, total sales were 23.5 per cent small er than for the preceding twelve months. Stocks increased 10 per cent between December 1 and Janu ary 1, but on the latter date were 38 per cent smaller than at the corresponding time in 1931. Since Janu ary 1 there has been a notable improvement in de mand for merchandise, orders during the first half of the month running ahead of the same period last year. Business booked, however, is almost exclu sively for immediate delivery. Electrical Supplies — Contrary to the usual sea sonal trend, sales of the reporting firms in Decem ber showed an increase over November, but the total was more than one-third smaller than in December, 1930. Inventories continue to decrease, stocks on January 1 being 2 per cent smaller than on Decem ber 1, and 23 per cent less than on January 1, 1931. There was no appreciable change in prices as com pared with the preceding thirty days. Flour— Production at the twelve leading mills of the district in December totaled 262,892 barrels, against 272,264 barrels in November and 327,638 barrels in December, 1930. During the last half of December business continued quiet. Following the holidays the moderate upturn in cash wheat served to stimulate trading in flour, and prices were some what firmer. Stocks in all positions are low. Mill operations were at about 40 to 45 per cent of capacity. Furniture — December sales of the reporting interests showed a decrease of 18 per cent as com pared with November, and were slightly more than one-fourth smaller than in December, 1930. Stocks increased 17 per cent between December 1 and Janu ary 1, and on the latter date were 42 per cent smaller than on January 1 last year. Groceries — The movement of holiday goods improVed considerably during late December, num erous retailers filling eleventh-hour requirements. Demand for staples, canned and preserved foods, re mains quiet, particularly in the rural sections. December sales of the reporting firms were 5 per cent smaller than in November, and 17 per cent less than in December, 1930. Stocks on January 1 were slightly smaller than a month earlier, and 13 per cent less than on the opening day of 1931. Hardware — Conforming with the usual sea sonal trend, sales of the reporting firms decreased 17 per cent from November to December, and the total for the latter month was about one-fifth small er than for the corresponding period in 1930. Inven tories continue to decline, stocks on January 1 being 2 per cent and 12 per cent smaller, respectively, than thirty days and a year earlier. The movement of seasonal goods, which has been backward all winter, developed no improvement, and ordering of spring and summer lines was smaller than usual at this time of year. The trend of prices was lower. Iron and Steel Products — The usual slowing down in activities in the iron and steel industry which marks the final month of the year was con siderably more pronounced in December, than has been the case in recent years. Demand for both raw and finished materials, according to interests reporting to this bank, was in small volume, and despite light shipments, there was a further con traction in unfilled orders. Contracting for first quarter of 1932 requirements was little in evidence, new business booked being mainly for immediate and well defined needs. Operations at mills and foundries during the last half of December fell to the lowest levels of the year. As was the case ear lier in the season, the movement of seasonal goods, notably stoves, furnaces, tubular goods and acces sories, was adversely affected by the mild weather. Purchasing by the railroads continued at the low levels which marked earlier months of the year, and demand from the automotive and building in dustries failed to expand. The trend of prices was lower, with a number of specific reductions in fin ished steel materials, notably plates, sheets and hot rolled strip. Southern pig iron for delivery in this district was reduced $1 per ton ; scrap iron and steel prices receded to the lowest levels on the present downward movement. December business of ware house and jobbing interests was in smaller volume than in any month during the year. Since the second week of January there has been some betterment both in sentiment and actual business. Moderate improvement has been noted in orders and specifi cations from the automotive industry, and scattered orders for a variety of materials from miscellaneous sources indicate that consumers are more disposed to replenish stocks than heretofore. While prices are still somewhat unsettled, efforts at stabilization have met with a fair degree of success. There was a further decrease in production of pig iron for the country as a whole in December, and for the first time since September, 1921, the output fell below 1,000,000 tons. December production of 980,377 tons compares with 1,101,820 tons in November, and 1,665,715 tons in December, 1930. Steel ingot pro duction in the United States in December totaled 1,302,399 tons, against 1,593,684 tons in November and 1,979,547 tons in December, 1930. being taken in trade, stocks of salable secondhand cars decreased slightly from November to Decem ber, and on January 1 were 6 per cent smaller than on the same date in 1931. There was no change worthy of note in the tire situation as contrasted with the preceding thirty days. Deferred payment sales of automobiles by dealers reporting on that item in December constituted 54 per cent of their total sales, against 53 per cent in November and 51 per cent in December, 1931. RETAIL TRADE The condition of retail trade is reflected in the following comparative statements showing activities in the leading cities of the district: Department Stores N et sales com parison Stocks on hand D ec. 1931 12 months ended D ec. 31, 1931 com p, to D ec. 31, 1931 to com p, to D ec. 1930 same period 1930 D ec. 31, 1930 — 24.0% — 22.6% Evansville ....... .— 25.1% — 6.7 — 15.3 L ittle R o ck ...... — 12.4 — 18.3 — 15.3 Louisville ....... ,— 15.1 — 29.2 — 17.9 .— 15.3 — 11.4 — 17.9 ,— 3.5 — 12.9 — 10.5 St. L ouis ....... ,— 11.4 — 6.4 — 15.3 Springfield, M o .— 21.1 — 16.0 — 12.7 8th D istrict.... , — 12.6 Retail Stores AUTOMOBILES Distribution of automobiles in this district, ac cording to the reporting dealers, declined sharply during December, both as contrasted with the pre ceding month and the corresponding period in 1930, and was the smallest for any month since last Janu ary. For the year total sales were approximately one-fourth smaller than in 1930, and 28 per cent below the average for the past seven years. De clines in both the month-to-month and yearly com parisons extended quite generally to all classes of makes, but were most noticeable in the medium and high priced cars. It was reported by dealers that the Christmas trade was smaller than usual. There was still a general disposition to wait for new models and the annual automobile shows before filling requirements. Demand for trucks contin ues fairly active, December sales being about on a parity with the November total and 8 per cent larger than in December, 1930. Parts and accessory business was in considerable volume, due to ex tensive repairing and reconditioning of old cars by both owners and dealers. December sales of new passenger cars by the reporting dealers were 18 per cent smaller than in November, and about one-third smaller than the December, 1930, total. There was a slight increase in stocks of new cars in dealers hands between December 1 and January 1, and the total on the latter date was 35 per cent smaller than a year ago. Demand for used cars holds up well, and in consequence of the reduced number of vehicles Stock turnover Jan. 1, to D ec. 31, 1930 1931 2.11 1.97 2.64 2.74 2.91 2.88 3.05 3.27 2.66 2.67 3.95 3.90 1.80 1.75 3.48 3.51 N et sales com parison Stocks on hand D ec. 1931 12 months ended D ec. 31, 1931 com p, to com p, to D ec. 31, 1931 to D ec. 1930 same period 1930 D ec. 31, 1930 M en’ s Furnishings — 19.1% B oots and Shoes.... — 12.6 Stock turnover J,an. 1, to D ec. 31, 1931 1930 — 10.5% — 9 .5 % 3.27 3.18 — 19.2 — 16.0 2.87 3.03 BUILDING The dollar value of permits issued for new con struction in the five largest cities of the district in December was considerably greater than the record low total of November, but 18 per cent smaller than the aggregate in December, 1930. The total for 1931 was approximately one-fourth smaller than in 1930, and 45 per cent below the average during the past nine years. According to Statistics compiled by the F. W . Dodge Corporation, construction contracts let in the Eighth District during December amounted to $10,570,573, against $5,996,183 in November and $16,102,809 in December, 1930. For 1931 the total was $186,641,992, a decrease of $139,385,431 or 42.8 per cent as compared with 1930, and of $174,439,245 or 48.3 per cent as compared with the average during the past seven years. Building figures for December follow : Evansville .. L ittle R ock L ouisville .. Mem phis .... St. Louis.... N ew Construction _____ *C ost_____ Permits 1930 1931 1930 1931 58 162 $ 42 $ 161 25 876 125 20 1,696 90 35 34 102 32 63 71 2,051 211 209 130 504 $2,855 $2,426 D ec. totals.. 408 1,271 509 779 N ov. totals.. 564 1.283 1,429 O ct. totals.. 727 973 * In thousands of dollars (000 om itted ). Repairs, etc. ♦Cost___ Perm its 1931 1930 1930 1931 $ 3 $ 15 31 17 40 ' 17 52 8 14 10 20 7 156 79 73 88 256 78 222 161 338 385 574 497 430 704 $ 187 348 279 $325 408 462 POSTAL RECEIPTS Returns from the five largest cities of the dis trict show an increase of 18.8 per cent in combined postal receipts for the final quarter of 1931 under the preceding three months, and a decrease of 9.6 per cent as contrasted with the last quarter of 1930. Detailed figures follow : F or Quarter E nding j ) ec Sept. 30, June 30, D ec. 31, com p, to 1931 1931 1930 D ec. 1930 $ 147,000 $ 163,000 $ 162,000 — 12.3% 189,000 179,000 224,000 — 18.7 577,000 615,000 708,000 — 6.9 440,000 491,000 618,000 — 10.8 2,459,000 2,926,000 3,294,000 — 9.1 D ec. 31, 1931 Evansville ........$ 142,000 Little R o ck ........ 182,000 Louisville .......... 659,000 M emphis ............ 551,000 St. L ou is............ 2,993,000 Totals .................$4,527,000 $3,812,000 $4,374,000 $5,006,000 — 9.6 CONSUMPTION OF ELECTRICITY Public utilities companies in the five largest cities of the district report consumption of electric current by selected industrial customers in Decem ber as being about 12 per cent smaller than in November and 11.6 per cent less than in December, 1930. Detailed figures follow : N o. of D ec. N ov. Custom 1931 1931 ers * K .W .H . * K .W .H . Evansville .... 40 1,644 1,498 Little R ock.. 35 1,217 1,250 Louisville .... 85 5,093 5,369 M em phis ..... 31 1,472 1,399 St. L ou is......160 11,634 14,362 T otals ........... 351 20,987 * In thousands (000 om itted). 23,951 D ec. 1931 com p, to N ov. 1931 + 9.7% — 2.6 — 5.1 — 5.0 — 1970 — 12.4 D ec. 1930 * K .W .H . 1,726 1,254 5,723 1,710 13,329 23,742 D ec. 1931 com p, to D ec. 1930 — 4.8% — 3.0 — 11.0 — 18.2 — 12.7 — 11.6 AGRICULTURE Continuing conditions which have obtained since early autumn, temperatures throughout the entire Eighth District during the past thirty days have been unseasonably high. The average during November and December was well above normal, and continued so through the first half of January. The effect of these conditions on agriculture has been in the main favorable. Except where excessive rains have interfered with such operations, good progress has been made in plowing and preparation of the soil for planting spring crops. There has been ample precipitation for growing crops and deficiency in soil moisture occasioned by drouth in recent years has been largely made up. Pastures, particularly, in the south, were serviceable later into the season than usual, and the mild weather was favorable for live stock. The movement to market of nearly all crops has been slow, due in large measure to low prices and a disposition on the part of farmers to hold for more favorable terms. As a result of this, and heavy production, crop reserves on farms are larger than usual at this time of year. Home grown food supplies in virtually all sections of the district are the largest in recent years. On the other hand, low temperatures are needed for conditioning corn and for checking unseasonably early growth in vegetation generally. Through the south excessive rains have been detrimental to cot ton, causing heavy field losses and lowering quality of the unpicked staple. Considerable damage was done in Northern Mississippi by floods. In sections of Kentucky and Tennessee the movement of tobac co from farms to markets was interfered with by impassable dirt roads. Prices of a number of im portant agricultural products receded during late December, but partial recoveries have been made since the first week of January. Live stock prices continued at or around the lowest levels reached on the present downward movement. Winter Wheat— Reports from the principal wheat growing areas of the district reflect a favora ble position for the crop. According to preliminary estimate of the U. S. Department of Agriculture, the area seeded to wheat last fall in states entirely or partly within the Eighth District was 5,000,000 acres, a decrease of approximately 10 per cent as compared with the fall of 1930. Com — Total production of corn in states in cluding the Eighth District in 1931, is estimated by the U. S. Department of Agriculture at 917,125,000 bushels, an increase of approximately 73 per cent over the short crop of 530,880,000 bushels in 1930. Due to depressed prices, however, the value of the 1931 crop is estimated at only, $294,768,000, a decrease of $76,010,000 or 20.5 per cent under the value of the 1930 crop. Husking made rather slow progress during December in the northern stretches of the district, due to weather conditions and less hiring of help than usual. By January 1, however, the crop had been generally husked and housed. There were numerous complaints of excessive mois ture content, caused by humidity and low tempera tures, and some lowering of quality was caused by moulding in cribs. Fruits and Vegetables — Yields of fruits and vegetables in states entirely or partly within the Eighth District in 1930 were the largest in recent years, and in the case of some products, the largest on record. Returns received by producers, however, were proportionally much smaller than in former years, owing to depressed prices and lack of demand. Total output of potatoes in these states, according to the estimate of the U. S. Department of Agri culture, was 25,179,000 bushels, worth at December 1 farm prices $16,792,000 against 21,769,000 bushels in 1930 with a value of $25,366,000. The sweet potato crop amounted to 17,851,000 bushels with value of $10,159,000, against 12,493,000 bushels in 1930, with value of $11,358,000; apples, 34,593,000 bushels worth $17,698,000, against 10,344,000 bushels in 1930 with value of $13,591,000; peaches, 16,030,000 bush els with value of $8,822,000, against 1,428,000 bush els in 1930, worth $2,062,000, and grapes, 33,066 tons with value of $1,239,000, against 23,579 tons in 1930 with value of $1,108,000. The wastage of all tree fruit crops in 1931 was unusually heavy on account of overproduction and adverse marketing conditions. Live Stock — Some slowing down in the mar keting of live stock took place during the past thir ty days, due to the low prices prevailing, and heavy cooler stocks of dressed meats. The condition of livestock generally in the country continues excep tionally high, being favored by the mild, open winter and abundant and cheap feed. Generally through the district, milk production in December was above the 5-year average for that month, though season ally lower than in November. Receipts and shipments at St. Louis as reported by the National Stock Yards, were as follows: R eceipts D ec. N ov. D ec. 1931 1931 1930 Cattle and Calves..... 83,326 88,177 99,616 H o g s .............................276,951 245,061 331,465 H orses and M ules...... 1,517 2,479 2,336 Sheep ............................ 39,157 41,649 35,503 Shipments D ec. N ov. Dec. 1931 1931 1930 51,880 58,048 64,410 180,420 200,827 269,970 1,565 2,342 2,384 8,372 8,501 9,089 Following table shows comparative receipts and shipments for the years 1931, 1930 and 1929: _____________Receipts 1931 1930 1929 Shipments 1931 1930 1929 Cattle and Calves ..1,170,781 1,203,138 1,223,151 755,140 768,842 784,982 H ogs ........2,970,316 3,459,011 3,865,456 2,321,835 2,805,213 2,767,144 H orses and Mules ... 40,101 51,104 70,502 40,655 52,547 201,493 583,870 534,370 220,027 212,839 212,839 Sheep ........ 660,897 Cotton — According to the U. S. Department of Agriculture, production of cotton in the Eighth District in 1931 amounted to 3,668,000 bales which, on a basis of December 1 prices, had an estimated value of $104,538,000. This compares with 2,289,000 bales raised in 1930, for which producers received $108,727,000. While considerable cotton still remains in the fields, very little picking was accomplished during the last three weeks of December and early in January, owing to unfavorable weather. In many sections heavy field losses were caused by excessive rains, and in Mississippi large areas of cotton lands have been inundated by floods. Due to these condi tions a considerable portion of the cotton still in fields will not be picked. Mild weather generally through the season has been favorable to boll weevil survival. The general demand for cotton developed little change but prices were slightly higher. In the St. Louis market the middling grade ranged from 5.70c to 6.25c per pound between December and Jan uary 15, closing at 6.25c on the latter date, which compares with 5.70c on December 15, and 8^4 c on January 15, 1931. Receipts at Arkansas compresses from August 1, 1931 to January 15 this year totaled 1,243,956 bales, against 771,089 bales for the corre sponding period a year earlier. Stocks on hand on January 15 aggregated 667,822 bales, against 691,563 bales on December 11, and 351,229 bales on the corresponding date in 1931. Rice — Production of rice in Arkansas in 1931 totaled 9,381,000 bushels, which at December 1 farm prices, was worth $5,722,000. In 1930 the out put was 8,170,000 bushels with value of $6,376,000. Tobacco — Including all types, production of tobacco in states including the Eighth District in 1931, according to the U. S. Department of Agriculture, amounted to 658,978,000 pounds which was 142,019,000 pounds, or 27.5 per cent larger than the 1930 output. The total value of the crop, how ever, based on December 1 farm prices, was only $59,608,000, a decrease of $6,425,000, or approximate ly 10 per cent under the amount realized on the 1930 crop. The low range of prices since the opening of the market season in early December has been un satisfactory to growers. In all districts farmers, where able to do so, are holding their stocks for high er prices. Withal the markets are abundantly sup plied, and considerable tobacco has been sold. Prices received for burley tobacco prior to the January 1 recess averaged $9.57 per cwt., against $17.47 during the corresponding period in 1930. Commodity Prices — Range of prices in the St. Louis market between December 15, 1931 and January 15, 1932, with closing quotations on the latter date and on January 15, 1931, follow : Close Jan. 15, 1931 L ow Jan. 15,1932 H igh $ .80 ,,per bu..$ .57^4 $ -5 2 ^ $ .54*4 “ .66*4 July ................. .56*4 .5134 $ .8 1 ® .82 .60*4 .56 $ .56"""@".*56^4 N o. 2 red winter “ ,7 8 @ .79 “ .54 .59 N o. 2 hard “ .54*4 @ .55 Corn .38 .42*4 .72*4 •38^4 “ .43*6 .40*4 July ................. .73*4 .39*4 “ .69 @ .70 .39 .36*4 @ .37 N o. 2 m ixed.... .36*4 “ .7 0 @ .71 .40 .37 .37*4 @ .38 N o. 2 white.... Oats “ .25 @ .25*4 .3 5 ® .35*4 .27 N o. 2 white.... .24*4 Flour 4 .7 5 @ 5 .0 0 3.60 @ 4 .2 0 3.60 Soft patent..... 4.20 4 .25@ 4.40 4.20 @ 4 .5 0 4.20 Spring patent.. 4.50 .0625 .057 M iddling cotton.. ..per lb. .0625 .0854 6.10@ 8.30 3.00 H o gs on h o o f...... 4.85 W heat FINANCIAL Aside from factors directly affected by seasonal influences, changes in the banking and financial situation in this district were of a minor character. Demand for credit continued in limited volume, with requirements of mercantile and manufacturing interests exhibiting somewhat more than the usual seasonal recession. There was a further contraction in the call for funds to finance stocks, bonds and other investments. Demand for agricultural pur poses was less in evidence than during the preced ing several months, and there was considerable liquidation by country banks with their city corre spondents. Some backwardness in this respect was reported by city banks in the tobacco growing sec tions, where low prices and holding back their stocks by farmers tend to restrict liquidation. Commit ments of grain and flour milling interests were fur ther reduced, and represent the smallest total for this particular season in many years. There was the usual augmented demand for money incident to tax, interest and dividend disbursements, which, however, was not in sufficient volume to materially affect the situation as a whole. Total loans and discounts of the reporting mem ber banks decreased approximately 3 per cent be tween December 16 and January 13, and on the latter date were 19 per cent smaller than a year earlier. Loans on securities continued the down ward trend of recent months, and there was a de crease of 2 per cent in “ all other” (commercial) loans. Deposits of these banks decreased slightly between the dates mentioned, and were about 11 per cent smaller than at the same time in 1931. In vestments decreased 5 per cent during the month, but continued about one-fourth greater than a year ago. Borrowings of all member banks from the Federal Reserve Bank averaged somewhat larger than during the preceding month, but were sub stantially smaller than during the corresponding period a year ago. The demand for currency in this district, after increasing during the holiday season, declined during the last week in December, but in creased after January 1, contrary to the usual sea sonal tendency. A further slight firming tendency was shown by money rates. At St. Louis banks current quota tions were as follow s: Prime commercial paper, 4y2 to 6 per cent; collateral loans, 4% to 6 per cent; loans secured by warehouse receipts, 4 ^ to 6 per cent; interbank loans, 5 to 6 per cent and cattle loans, Sy2 to 6 per cent. Condition of Banks — Loans and discounts of the reporting member banks on January 20, 1932 showed a decrease of 2.8 per cent as contrasted with December 23, 1931. Deposits decreased 2.7 per cent between December 23, 1931 and January 20, 1932 and on the latter date were 11.3 per cent smaller than on January 21, 1931. Composite statement follow s: ♦Jan. 20, 1932 Num ber of banks reporting............ 24 Loans and discounts (incl. rediscounts) Secured b y U . S. G ovt., obligations and other stocks and bonds............ $147,756 A ll other loans and discounts.... 229,436 ♦Dec. 23, 1931 24 ♦Jan. 21, 1931 25 $147,032 240,997 $195,233 270,439 T otal loans and discounts............... .$377,192 Investments U . S. Government securities.... . 90,547 Other securities............................. 118,987 $388,029 $465,672 92,419 126,894 37,196 133,054 T otal investments...............................,$209,534 Reserve balance with F . R . Bank 39,946 Cash in vault..................................... . 8,737 Deposits N et demand deposits.................... . 316,295 T im e deposits................................. , 213,784 3,340 Government deposits.................... . $219,313 43,024 8,124 $170,250 42,967 7,129 335,339 208,246 4,723 364,610 235,996 482 $601,088 $548,308 T otal deposits..................................... .$533,419 Bills payable and rediscounts with 1,210 9,669 13,284 Federal Reserve B ank.................. . *In thousands (000 om itted). These 24 banks are located in St. Louis, Louisville, Memphis, Little R ock, and Evansville, and their total resources com prise approximately 52.6 per cent of all m ember banks in this district. Debits to Individual Accounts — The following table gives the total debits charged by banks to checking accounts, savings accounts, certificates of deposit accounts and trust accounts of individuals, firms, corporations and U. S. Government in leading cities of the district. Charges to accounts of banks are not included. ♦Dec., 1931 East St. Louis & Natl. Stock Yards, 111..$ 22,810 4,152 El Dorado, A rk .... Evansville, In d ..... 18,360 F ort Smith, Ark.... 8,939 Greenville, Miss.... 3,146 1,692 Helena, A rk............ Little R ock, Ark.. 26,123 Louisville, K y ........ 124,160 Memhpis, T enn ..... 107,010 Ow ensboro, K y ..... 4,250 Pine Bluff, A rk ..... 6,807 Quincy, 111.............. 7,764 St. Louis, M o ........ 594,539 2,465 Sedalia, M o ............ Springfield, M o..... 12,123 **Texarkana, A rk -T e x ......... 7,447 ♦N ov., 1931 ♦Dec., 1930 $ 23,207 3,942 15,053 8,898 3,298 2,912 22,756 108,342 111,305 3,950 7,208 7,042 457,345 1,958 11,475 $ 36,638 6,009 25,888 11,855 3,838 2,417 32,208 145,863 128,698 7,055 7,589 6,978 649,497 4,206 14,653 6,675 10,684 D ec., 1931 com p, to N ov. 1931 D ec. 1930 — 1.7% + 5.3 +22.0 + -5 — 4.6 — 41.9 + 14.8 + 14.6 — 3.9 + 7.6 — 5.6 + 10.3 + 3 0 .0 + 2 5 .9 + 5.6 + 1 1 .6 Totals .....................$951,787 $795,366 $1,094,076 + 1 9 .7 ♦In thousands (000 om itted ). ♦♦Includes one bank in Texarkana, T exas not in E ighth District. — 37.7% — 30.9 — 29.1 — 24.6 — 18.0 — 30.0 — 18.9 — 14.9 — 16.9 — 39.8 — 10.3 + 11.3 — 8.5 — 41.4 — 17.3 — 30.3 — 13.0 Federal Reserve Operations — During Decem ber the Federal Reserve Bank of St. Louis dis counted for 241 member banks against 253 in November and 244 in December, 1930. The dis count rate remained unchanged at 3 y2 per cent. Changes in the principal assets and liabilities of this institution appear in the following table: U . S. Securities......................................... Federal Inter. Cr. Bk. D ebentures...... Participation in Inv. F oreign Banks.. Ratio of reserve to deposits and F. R. N ote Liabilitie! ♦In thousands (000 o m itte d ). (Compiled January 23, 1932) ♦Jan. 21, 1932 .$25,769 . 10,517 . 27,886 880 . 1,100 ♦Dec. 21, 1931 $29,728 6,976 27,351 880 1,103 ♦Jan. 21, 1931 $11,207 4,689 24,151 .$66,152 . 98,438 . 92,507 . 64,576 $66,038 94,920 87,857 65,900 $41,306 114,404 81,446 69,010 . 62.7% 61.7% 76.0% * 1,259 BUSINESS CONDITIONS IN THE UNITED STATES Industrial activity declined from November to December by slightly more than the usual seasonal amount, while the volume of factory employment showed about the usual decrease. Whole sale prices declined further. PRODUCTION AND EMPLOYMENT — Volume of in dustrial output decreased somewhat more than is usual in Decem ber and the Board’s seasonally adjusted index declined from 72 per cent of the 1923-1925 average in November to 71 per cent in a decline of 37 per cent from 1930 and imports a decline of 32 per cent, reflecting in part the reduction in prices. WHOLESALE PRICES — Wholesale prices of commodi ties declined from 68 per cent of the 1926 average in November to 66 per cent in December, according to the Bureau of Labor Statistics, reflecting decreases in the prices of many domestic agricultural products, sugar, silk, iron and steel arid petroleum products. During the first half of January prices of hogs, lard, PERCENT 120 PER CENT F/ic t o r y lew eiMPLOYMEHT |«A I1U 110 100 90 90 • 80 80 70 70 60 1927 1928 1929 1930 1931 1932 ” 60 Federal Reserve Board’s index of factory employment with adjustment for seasonal variation. (1923-1925 averages 100.) Latest figure December, 69.4. December. Activity in the steel industry decreased from 30 to 24 per cent of capacity for the month, partly as a result of seasonal influences. In the first three weeks of January it showed a sea sonal increase. Automobile output increased considerably in December from the extreme low level of the preceding month, and daily average output at shoe factories, which ordinarily de clines at this season, showed little change. At textile mills pro duction was curtailed by more than the usual seasonal amount. Number employed at factories decreased seasonally from the mid dle of November to the middle of December. In the automobile and shoe industries there were large increases in employment, while in the clothing industries employment declined. In most lines, however, changes were of a seasonal character. For the year 1931 as a whole the average volume of industrial production was about 16 per cent smaller than in 1930, reflecting large decreases in output of steel, automobiles, and building materials, offset in part by slight increases in production of textiles and shoes. Value of building contracts awarded, as reported by the F. W. Dodge Corporation, declined considerably more than is usual and butter declined further, while prices of cotton, silk, coffee, and copper increased. BANK CREDIT — Reserve bank credit, which had declined from the middle of October to the middle of December and had increased in the latter part of the month, declined again in the first three weeks in January. The growth in the latter part of December reflected a somewhat more than seasonal increase in the demand for currency, partly offset by reductions in member bank reserve balances and in deposits of foreign central banks. In January the return flow of currency was considerably smaller than^ in other recent years, while member bank reserve balances continued to decline. Acceptance holdings of the reserve banks, which had reached a total of $780,000,000 in October, have declined through maturing of bills held almost uninterruptedly since that time, and on January 20 totaled $190,000,000. The banks’ port folio of United States Government securities showed some in crease over the level of the early part of December and discounts for member banks increased substantially. Loans and investments of member banks in leading cities declined further during Decem MONEY RATES IN NEW YORK A W 'Y - r.. " ■ j - 1\i X /y I \r F mm Commt*x M Paperficrfo rnOTe " — Acceptance Etafa . ... 1927 1. . 1928 1 11 1929 'V ' 1930 1931 1932 Monthly rates in the open market in New York: commercial paper rate on 4 to 6 month paper. Acceptance rate on 90-day bankers' acceptances. Latest figures are averages of first 20 days in January. from the third to the fourth quarter, and for the year as a whole was 32 per cent smaller than in 1930, reflecting reduced physical volume of construction, as well as lower building costs. DISTRIBUTION — Distribution of commodities by rail de clined by the usual seasonal amount in December, and department store sales increased by approximately the usual amount. FOREIGN TRADE — Value of foreign trade continued at a low level in December. For the year as a whole exports showed ber and the first two weeks of January, reflecting reductions in loans on securities, as well as in other loans, and in investments. In the middle of January buying rates for bankers’ acceptances at the Federal reserve banks were reduced and open market rates on 90 day bills declined first from 3 to 2% per cent and later to 2^4 per cent. Yields of high grade bonds, after advancing for a period of about four months, declined after the turn of the year, reflecting a rise in bond prices.
@FedFRASER