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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 30, 1937 FEDERAL RESERVE District Summary Dec. 1936 comp, with Live Stock: Nov. 1936 Dec. 1935 Receipts at National Stock Yards.....— 2.7% + 7.0% Shipments from aforesaid Yards...... — 2.6 + 0.5 Production and Distribution: Sales by mfrs. and wholesalers........ — 14.5 Department store sales.......................+ 63.6 Car loadings.........................................+ 4.8 Building and Construction: T51« i • f Number...— 16.5 Bldg.permits,incl.repairs j Cost .+291.4 Value construc. contracts awarded....+ 3.7 Miscellaneous: n • 1 * -t f Number.......... + 25.0 Commercial failures | Liabilities...... Z 59.3 Consumption of electricity................. — 2.5 Debits to individual accounts............ + 20.1 +22.3 +18.6 + 2 6 .6 +52.3 +70.9 —42.2 — 3.0 _ 44.2 +15.9 +23.8 Jan. 13,*37 comp, with Member Banks (24): D ec.i6,’ 36 Jan. 15/36 Gross deposits..................................... + 1.2% +13.4% Loans................................................... .— 1.3 +19.2 Investments......................................... + 1.3 + 5.6 IG H TH District commerce and industry dur ing the past thirty days continued the nota ble improvement which had marked earlier months in 1936. Allowing for seasonal factors the rate of business activity during December was at the highest level for the year and represented the peak of the recovery period. As a whole industrial production declined in considerably less than the usual seasonal amount, and in a number of impor tant phases of manufacturing, there was no evidence of the recession which ordinarily occurs at this time of year. Bolstered by the heaviest holiday trade since the predepression era, retail distribution in December expanded to the highest volume of the year, and for that particular month since 1929. Cumulative retail sales for 1936 were approximately 12 per cent in excess of volume for the preceding year. All wholesaling and jobbing lines investigated by this bank showed increases in December over a year earlier, and five important classifications, in cluding drugs and chemicals, furniture, groceries and hardware, recorded contraseasonal gains over November. Combined total, for the year of whole saling and jobbing firms reporting to this bank was the highest since 1930. Reflecting the heavy volume E BANK OF ST. LOUIS of commodity distribution, freight traffic of railroads operating in this district was 18.5 per cent greater than in 1935, and the highest since 1931. Riverborne traffic in 1936 was 7 per cent greater than in 1935, and heaviest in the history of Federal Barge Line between St. Louis and New Orleans. The revival in building during 1936 was re flected in notable expansion in demand for all de scriptions of building materials. Production of lum ber, glass, cement, fire-clay products, stone, etc., in this general area, according to preliminary reports, exceeded that of the preceding year, and represented the largest total since the predepression era. A c tivities in the iron and steel industry increased steadily through 1936, and the rate since resump tion of operations following the holidays has reached levels which obtained at mid-December, at which time the peak of the year was recorded. Better ment extended to virtually all sections of the indus try. Shipments to and consumption of pig iron by district melters in 1936 represented the highest totals since 1929. At the end of the year ingot production at mills in this area was at 80 per cent of capacity. Production of bituminous coal at mines in fields of the district increased contraseasonally from Novem ber to December, and for the twelve months of 1936, tonnage lifted was greater by 12 per cent than in 1935. Although employment in industry averaged only about 8 per cent above 1935, available statistics indicate payrolls increased from 12 to 16 per cent. Agricultural incomes of farmers in states partly or entirely within the Eighth Federal Reserve Dis trict, according to the U. S. Department of Agri culture estimates, was 23 per cent greater in 1936 than in 1935, and approximately 63 per cent in excess of the average for the 4-year (1932-1935) period. These results were achieved in face of the severest drouth of record in this general area, and do not include revenue derived from livestock and livestock products. Quite generally, but more particularly in the southern states, the economic status of farmers at the end of 1936 was the most favorable in a num ber of years. While practically all crops, other than cotton and wheat were below average, deficiency Page 1 in yield was more than counterbalanced by high prices realized by producers. Tobacco markets for the 1936 crop, which opened in December have been featured by the highest average prices in recent years. While weather in the immediate past has been unfavorable for field work, preparation for spring crops and general farm routine is up to the usual seasonal schedule. Condition of winter wheat as of January 1 was reported in the main favorable. Gauged by sales of department stores in princi pal cities, volume of retail trade in December was 63.6 per cent greater than in November and 18.6 per cent in excess of the December, 1935, total; for the year 1936 the volume was 12.3 per cent greater than in 1935. Combined December sales of all wholesal ing and jobbing firms reporting to this bank were 14.5 per cent less than in November,but 22.3 per cent greater than in December, 1935; for the year, sales of these firms were 7 per cent larger than the 1935 total. The value of permits let for new buildings in the five largest cities in December was about three and one-half times larger than in November and 160 per cent greater than in December, 1935; for the year 1936 the total was 74 per cent in excess of that for the preceding 12-month period. Construc tion contracts let in the Eighth District in Decem ber were 4 per cent larger than in November but 42 per cent below December last year; for 1936 the aggregate was one-half larger than in 1935. Feight traffic of railroads operating in this dis trict, according to officials of the reporting lines, showed considerably less than the average seasonal decline during the past thirty days. The volume ex ceeded that of any similar period since 1930, and for the twelve months of 1936 aggregate tonnage han dled was the largest since 1931. Increases during the thirty-day period over a year earlier were re corded in all classifications, but were particularly noticeable in merchandise L. C. L., forest products, ore and miscellaneous freight. Passenger traffic of the reporting roads continued at an accelerated pace the steady gains of earlier months in 1936, being bolstered by the heaviest holiday and tourist travel since the predepression era. Tonnage handled in December by the Federal Barge Line between St. Louis and New Orleans fell 40 per cent below No vember, but was 5 per cent greater than in Decem ber, 1935; the total for 1936 exceeded that of the preceding year by approximately 7 per cent. Collections generally throughout the district maintained the high level of efficiency which has marked the past eighteen months. Rapid marketing of the tobacco crop and high prices realized by pro ducers have resulted in considerable volume of liqui Page 2 dation with both merchants and banks in the typical tobacco areas. Questionnaires addressed to repre sentative interests in the several lines scattered through the district showed the following results: Excellent December, 1936......... 6.1% November, 1936......... 9.5 December, 1935......... 4.8 Good Fair Poor 60.6% 52.5 51.0 31.8% 36.7 42.2 1.5% 1.3 3.5 Commercial failures in the Eighth Federal Re serve District in December, according to Dun and Bradstreet, numbered 32, involving liabilities of $225,000, which compare with 25 insolvencies in November with liabilities of $553,000 and 33 failures for a total of $403,000 in December, 1935. In 1936 there were 372 failures with total liabilities of $4,709,000, against 415 defaults in 1935 involving $4,259,000 of liabilities. In the depression year 1932 the number of failures was 1,467, with liabilities of $45,568,526. Detailed Survey MANUFACTURING AND W H O LESALIN G Stocks Net Sales Dec. 1936 12 months 1936 Dec. 31, 1936 comp, with compared with comp, with same period 1935 Dec. 31, 1935 Nov. ’ 36 Dec. ’ 35 Boots and Shoes......... — 23.2% + 10.4% — 6.1% — 2.9% + 7.2 + 12.1 Drugs and Chemicals.. + 3.8 + 19.5 + 16.0 + 25.7 — 28.3 +32.4 + 20.0 +90.3 +21.6 +28.0 + 32.2 + 6.3 + 8.4 + 63.5 +21.5 + 6.5 + 15.2 + 6.1 + 13.5 +25.3 + 33.2 + 3.6 Lines of Commodities All above lines......... — 14.5 +22.3 + 7.0 + 16.6 Automobiles — Combined passenger car, truck and taxicab production in the United States in De cember was 498,721 against 394,890 in November, and 404,528 in December, 1935. Boots and Shoes — The decrease in sales from November to December was seasonal in character, but smaller than average during the past several years. In anticipation of heavy spring and summer demands, inventories increased considerably, stocks as of January 1 being approximately 10 per cent greater than a month earlier. While there were no changes in prices of finished goods, the trend was upward in sympathy with the rise in leather and other raw materials. Clothing — Sales of the reporting firms in De cember were 12.6 per cent smaller than in November and about one-fourth greater than a year earlier. Inventories continued to expand, stocks on January 1 being 30 per cent and 20 per cent greater, respec tively, than a month and a year earlier. Advance ordering of spring and summer lines was reported considerably in excess of the volume a year and two years earlier. Clearance of heavyweight apparel through retail channels was reported the most thor ough in recent years. Drugs and Chemicals — The contraseasonal in crease in sales in this classification from November to December was accounted for largely by heavy demand for remedial drugs incident to prevalence of influenza generally through the district. Ordering of these lines during early January showed noticea ble expansion. Prices showed no change worthy of note during the past thirty days, but were measur ably higher than a year ago. Dry Goods — Conforming with the usual sea sonal precedent, sales of the reporting interests de clined from November to December, but as had been the case in all preceding months since February, the December total exceeded that of the corresponding month a year earlier. Orders booked during the first half of January indicate a gain for the month of ap proximately 30 per cent over a year ago. Electrical Supplies — Aggregate sales of the re porting firms in 1936 exceeded the volume of all years since 1929. Outstanding in the year’s business was the notable expansion in household appliances, building installations, radio material and air-condi tioning equipment. Furniture — Of the wholesaling and jobbing lines investigated by this bank, furniture recorded the most notable recovery during 1936. Total vol ume of sales for the year was approximately onethird greater than in 1935 and the highest since 1929. Betterment extended through the entire line, but was particularly noticeable in household furniture and furnishings. Groceries — The increase in sales in this classi fication from November to December was contrary to the usual seasonal experience and was due to an extraordinarily heavy volume of orders for holiday goods. According to the reporting firms, aggregate sales for the twelve months of 1936 were the highest since 1929. Hardware — Steady improvement in this classication marked the past year. The December volume, which showed a contraseasonal increase over No vember, was the largest for the month since 1927. The trend of prices has been upward during the past several months in sympathy with the advances in metals and other raw materials. Iron and Steel Products — Activities in the iron and steel industry in this area during the past thirty days were at considerably higher rate than at any similar period in a number of years. The usual cur tailment in late December and early January for inventory, repairs, etc., was less in evidence than heretofore, and in a number of instances operations were continuous, except for the two holidays, Christ mas and New Years. Makers of both standard steel products and specialties entered the new year with substantial backlogs of orders, and with pressure for deliveries, high schedules were the rule. Deliv eries of pig iron to district melters in December were the largest for any month in 1936, and repre sented the highest tonnage for any December since 1929. Activities at steel casting plants specializing in railroad work were stepped up further, and the same was true of builders of freight-cars and other railroad equipment. Jobbing foundries reported a substantial volume of new orders, representing re quirements of miscellaneous users as well as over flow work from stove plants and other specialty manufacturers. Producers of sheets, plates, bars and other rolled steel items are still in arrears on deliveries. Ordering of these commodities during the closing weeks of last year were stimulated by announcement of price advances to become effective January 1. An additional advance of 50c per ton on pig iron went into effect on January 1, making a total increase of $1.50 since November 15. Reflect ing a general scarcity and urgent demand, scrap iron and steel prices advanced sharply, certain important grades reaching the highest levels in more than a decade. In the immediate past there has been some slowing down in specifications and new orders from the automotive industry, reflecting interference with production of certain manufacturers incident to labor troubles. Steel ingot production at mills in this general area at mid-January was at 80 per cent of capacity, equal to the highest point reached last year. For the entire country, production of pig iron in December, according to the magazine “ Steel” totaled 3,125,192 tons, against 2,949,942 tons in November and 2,115,496 tons in December, 1935. At 30,682,704 tons, production in 1936 was 45.8 per cent in excess of the 21,040,483 tons in 1935. Output of steel ingots in December amounted to 4,431,645 tons, which compares with 4,337,412 tons in Novem ber and 3,073,405 tons in December, 1935. Produc tion for the year totaled 46,919,362 tons against 33,417,985 tons in 1935. MINING Responding to continued industrial activity, poduction of bituminous coal continued to expand duing December and the first half of January. Im portant consuming interests are disposed to accu mulate stocks against possible labor disturbances during the spring. At mines in fields in this general area, output for December was 12.0 per cent greater than in November and 16.3 per cent in excess of the December, 1935, total; for the twelve months of 1936 the tonnage lifted was 12.0 per cent greater Page 3 than in 1935. Estimated production of soft coal for the entire country in December was 44,487,(XX) tons, which compares with 41,588,000 tons in November and 35,388,000 tons in December, 1935. Total output for 1936 is estimated at 431,950,000 tons against 369,324,000 tons produced in 1935. At Illinois mines in December, 5,733,619 tons were lifted, which com pares with 4,741,897 tons in November and 4,763,895 tons in December, 1935. There were 170 mines in operation in December and 38,295 men on payrolls as against 166 active mines and 37,801 operatives in November. RETAIL TRADE Department Stores — The condition of retail trade is reflected in the following comparative state ments showing activities in the leading cities of the district: Stock Stock Net Sales on Hand Turnover Dec. 1936 12 mos. 1936 Dec. 31/36 Jan. 1, to compared with to same comp, with Dec. 31, Nov. 1936 Dec. 1935 period ’ 35 Dec. 31/35 1936 1935 El Dorado, Ark......... + 57.89 + 5.89 + 0.5% 2.90 2.71 + 3.49 Ft. Smith, Ark......... + 69.6 + 17.7 + 16.3 + 8.9 2.88 2.61 Little Rock, Ark....... +51.1 + 26.2 + 16.6 + 7.7 3.31 2.81 Louisville, K y........... +81.9 + 19.4 + 13.2 + 16.0 4.56 4.10 Memphis, Tenn......... +78.6 + 21.4 + 14.2 + 9.6 3.84 3.42 Pine Bluff, Ark......... +67.1 + 25.6 + 10.4 + 6.3 4.23 3.33 St. Loius, M o............ + 58.1 + 16.8 + 11.3 10.8 4.42 4.09 Springfield, M o.......... +52.9 22.0 + 10.5 + 3.8 2.83 2.58 All Other Cities....... + 70.2 + 18.9 + 10.4 3.48 3.35 + 1.4 8th F. R. District..... + 63.6 + 18.6 + 12.3 + 10.4 4.15 3.78 + + Percentage of collections in December to ac counts and notes receivable first day of December, 1936, by cities: Installment Excl. Instal. Accounts Accounts El Dorado................ % ............72.4% Fort Smith............... ........... 38.7 Little Rock....... 17.0 ............ 40.3 Louisville ........ 12.9 ............54.1 Memphis ......... 24.8 ........... 47.9 Installment Excl. Instal. Accounts Accounts Pine Bluff............... % ............38.3% Springfield ...............................35.9 St. Louis........... 19.6 ............58.5 Other Cities...... 17.2 ............52.8 8th F. R. Dist..l9.0 ........... 52.2 and shortages were particularly acute in grain feeds and fodder. Fruit and vegetable crops were the smallest in many years, with virtual failures re corded in some commercial producing sections. The increase in farm revenue was, therefore, ascribable entirely to higher prices received by producers, plus benefit payments paid to farmers by the Government in furtherance of its soil conservation program and other purposes. Marketings of livestock were some what larger than in 1935, but fell below 1934, during which earlier year, it will be recalled, drouth condi tions occasioned extraordinary shipments of cattle and other meat animals. In its latest report the U. S. Department of Agriculture estimates the farm value of the 64 prin cipal 1936 crops in states including the Eighth Dis trict at $1,374,027,000 and the acreage harvested of 44 principal crops at 66,814,000 acres. The following comparative table gives the estimated value and acreage by states for 1936 and the two preceding years, slight revisions occurring in the 1934 and 1935 figures: Acres Harvested 1935 1934 1936 ..10,326 10,662 9,526 .19,395 19,079 15,735 Missouri ...,12,280 11,115 10,998 Kentucky ..... 5,049 5,213 4,743 6,134 5,482 Teimessee ... 6,178 6,797 6,017 Mississippi.., 7,135 6,159 5,533 Arkansas ..,.. 6,451 (In thousands) 1936 $ 199,979 368,406 150,595 131,827 139,698 226,339 157,183 Farm Value 1935 1934 $ 168,258 $ 153,712 326,346 218.569 135,785 103.569 116,896 118,840 112,535 124,423 147,362 143,669 106,155 112,008 1,119,190 968,937 Totals...,.66,814 65,159 58,034 1,374,027 These estimates are based on the December 1 farm price, except for some early marketed products, for which price for the marketing season is used. AGRICULTURE As a whole the winter to date has been favora ble for agricultural activities and the development of fall sown grains. Temperatures have been some what below normal, which fact has rendered pas tures serviceable to a later date than usual and per mitted of conservation of prepared feeds for live stock. Considerable progress has been made in plowing and preparing for spring planting; quite generally farm routine is up to the usual seasonal schedule. In some sections precipitation during the late fall and early winter was below normal, but the deficiency has been largely made up by abundant rains and snow since January 1. Universally farm labor is adequate for all needs, with wage schedules averaging somewhat higher than at the same time during recent years. Despite one of the severest and most prolonged drouths of record, Eighth District farm income ex panded during 1936 and was, according to Govern ment estimates, 23 per cent greater than in 1935, and approximately 63 per cent in excess of the average for the four years (1932-1935) period. With the ex ception of winter wheat and cotton, all of the princi pal crops produced in this area were below average, Cotton — In the Eighth District proper, produc tion of cotton in 1936 was estimated by the U. S. Department of Agriculture at 3,402,000 bales, with farm value $208,474,560, the value being based on average price for marketing season to December 1. This compares with 2,243,000 bales, w^orth $128,182,000 in 1935; 2,323,000 bales valued at $142,679,000 in 1934; 2,350,000 bales with value of $113,270,000 Specialty Stores — December results in men’s furnishings and boot and shoe lines are shown in the following table: Stock Stock Net Sales___________ on Hand Turnover Dec. 1936 12 mos. 1936 Dec. 31/36 Jan. 1, to compared with to same comp, with Dec. 31, Nov. 1936 Dec. 1935 period’ 35 Dec. 31/35 1936 1935 Men’s Furnishings....+ 44.7 % + 1 9 .0 % + 13.6 % + 5.5% ' 2.89 2.71 + 19.3 + 15.9 + 7.3 7.09 6.02 Boots and Shoes....... + 39.9 Percentage of collections in December to accounts and notes receivable first day of December, 1936: Men’s Furnishings................. 35.5% Page 4 Boots and Shoes.......................41.2% in 1933 and 2,635,000 bales worth $75,256,000 in 1932. From the beginning of the marketing season the crop has moved rapidly, due to a good demand for the staple and high prices realized by producers. Fall and early winter conditions were ideal for pre paring the soil for the new crop, and these opera tions are somewhat in advance of the ordinary sea sonal schedule. Unofficial reports from scattered sections of the territory indicate intentions to plant somewhat larger acreage than were seeded last spring. In 1936 the average rate paid workers for picking cotton was considerably higher than a year earlier. At 69c per 100 pounds of seed cotton, pickers received 11c more per cwt. than in 1935, the highest since 1929. Prices during the past thirty days have continued at the high levels set earlier in the season. In the St. Louis market the middling grade ranged from 13.05c to 13.40c per pound between December 16, and January 15, closing at 13.35c on the latter date, which compares with 13.25c on December 15, and 11.65c on January 15, 1936. As indicating the rapid movement of the crop, combined receipts at Arkansas and Missouri compresses from August 1 to January 8 were 1,271,793 bales as against 875,887 bales during the corresponding period a year earlier. Stocks as of January 8 totaled 552,459 bales against 595,007 bales on the corresponding date in 1936. Livestock — The conditions of livestock gener ally through the district is reported good to excel lent. Marketing of cattle and hogs decreased slightly from November to December, while the movement of sheep increased during the interim. Prices of all species at mid-January showed little change as con trasted with a month earlier. Receipts and shipments at St. Louis as reported by the National Stock Yards were as follows: _________Receipts_______ Dec., Nov., Dec., 1936 1936 1935 Cattle and Calves..... 127,956 136,578 154,315 Hogs ..........................284,041 274,994 218,379 6,645 3,768 Horses and Mules..... 4,536 Sheep .......................... 56,728 68,007 65,636 ______ Shipments________ Dec., Nov., Dec., 1936 1936 1935 69,581 69,864 75,847 147,874 149,201 140,560 5,817 7,061 3,799 6,337 9,701 8,182 Totals..................... 473,261 486,224 442,098 229,609 235,827 228,388 The following table shows comparative receipts and shipments for the years 1934, 1935 and 1936. (In thousands) Cattle Hogs Horses Sheep and Calves..... ................... ...... and Mules..... ......................... _______ Receipts________ 1936 1935 1934 1,483 1,641 1,816 2,474 2,026 2,960 62 70 84 709 765 650 Totals..................... 4,728 4,502 5,510 ______Shipments________ 1936 1935 1934 826 938 987 1,514 1,286 1,787 62 69 84 137 144 153 2,539 2,437 3,011 T ob a cco— Selling was resumed in the burley tobacco markets on January 4, with liberal offerings, following the holidays, and after slight irregularity in initial sales, a further advance in prices. On the reopening date from $70.00 to $72.00 per cwt. was being readily paid for medium quality and from $74.00 to $76.00 for choice grades. These are high figures when it is known that average price for the 1935 burley crop was $19.05 per 100 pounds and for the 1931 crop only $8.63. As of January 8 it was estimated that approximately 120,000,000 pounds of the 1936 burley crop had been sold at an average in excess of $40.00 per cwt. for the season. In the one sucker markets demand continued active, with daily prices ranging as high as $25.00 per cwt. The Green River and stemming markets also report an active demand for all leaf offered. The dark fired markets resumed after the holidays in both eastern and western districts with relatively light offerings. Prices for all grades were higher than last year and the general average for the week of January 8 was about $3.50 per hundred pounds higher in the eastern district and $1.50 in the west ern district than prices paid at opening last year. Winter Wheat — The area seeded to winter wheat last fall in states partly or entirely within the Eighth District comprised 9,706,000 acres as com pared with 7,389,000 acres in 1935; 7,270,000 acres in 1934, and the 5-year average (1927-1931) of 6,337,000 acres. The sharp increase last fall over recent years reflected the need of fall pasturage, the high price of wheat at seeding time, a favorable statistical position and the shift from corn acreage because of successive corn crop failures in recent years. An ac tive export demand and heavy domestic require ments have served to maintain prices at the highest levels in more than seven years. Wheat stocks on farms as of January 1, according to the U. S. De partment of Agriculture, totaled 14,383,000 bushels, as against 18,082,000 bushels a year earlier and the 5-year (1928-1932) average of 22,814,000 bushels. January 1 farm stocks of corn and oats were also considerably smaller than the 5-year average. COM M ODITY PRICES Range of prices in the St. Louis market between December 15, 1936, and January 15, 1937, with clos ing quotations on the latter date and on Tanuary 15, 1936, follow: High Lo\y __________Close_______________ Jan. 15, 1937 Jan. 15, 1936 Wheat *May ...................per bu..$l.36% $1.29% $1.29% $ 1.03% *July ................... ... “ 1.23J4 1-12% 1.12% .88% *Sept...................... ....“ 1-14J4 1.08% 1.08% .89% *No. 2 red winter “ 1.45 1.36# 1.43 1.07 *No. 2 hard “ “ 1.44# 1.36 1.41 1.15# Com *May ...................... “ 1.26 1.13% 1.25% .6 0 # *July ...................... “ 1.21# 1.09# 1-20% .6 1 # *Sept...................... ... “ 1.16% 1.09% 1.16% .6 1 # *No. 2 Mixed .... “ 1.16 1.07 1.14# .6 1 # *No. 2 White .... " 1.14# 1.06# 1.13# ,6 8 # Oats *No. 2 White .... “ .5 7 # .5 2 # .57 .3 2 # Flour Soft Patent.......per bbl. 6.75 6.006.10@ 6.75 5.80@6.35 Spring “ ....... .... “ 8.45 7.958.15@ 8.35 7.30@8.45 Middling Cotton...per lb. .1340 .1305 .1335 .1165 7.00 7.50 @10.60 6.50@9.90 Hogs on hoof.....per cwt.10.90 *Nominal quotations. Page 5 CONSUMPTION OF ELECTRICITY BUILDING Public utilities in six large cities of the district report consumption of electric current by selected industrial customers in December as about 2.5 per cent smaller than in November, and 15.9 per cent greater than in December, 1935. Detailed figures follow : The dollar value of permits issued for new con struction in the five largest cities of the district in December was 343.2 per cent greater than in No vember and 160.4 per cent larger than in December, 1935. According to statistics compiled by the F. W. Dodge Corporation, construction contracts let in the Eighth Federal Reserve District in December amounted to $11,268,300 which compares with $10,863,000 in November and $19,483,998 in Decem ber, 1935. For the year the construction contracts totaled $197,262,101 and for 1935 $131,451,388. Build ing figures for December follow : (K .W .H . No. of Dec., in thous.) Custom 1936 K .W .H . ers Evansville .... 40 3,211 Little Rock.. 35 1,879 8,439 Louisville .... 82 2,320 Memphis ..... 31 Pine Bluff.... 20 1,036 21,749 St. Louis..... 186 Totals.....394 *Revised. 38,634 Nov., 1936 K .W .H . 3,074 1,878 8,727 2,492 898 22,547 39,616 Dec. 1936 comp, with Nov. 1936 + 4.5% + 0.05 — 3.3 — 6.9 + 15.4 — 3.5 — 2.5 Dec., Dec. 1936 1935 comp, with K.W .H. Dec. 1935 2,631 +22.0% 1,337 +40.5 7,671* + 10.0 2,438 — 4.8 813 +27.4 18,451 + 17.9 33,341 + 15.9 The following table shows comparative figures of consump.tion of electric current by selected indus trial customers, for the years 1936 and 1935: (K .W .H . in thousands) K.WVH. Evansville, Indiana............................... 32,292 Little Rock, Arkansas........................... 23,075 Louisville, Kentucky............................. 102,269 Memphis, Tennessee............................. 25,532 Pine Bluff, Arkansas............................. 8,172 St. Louis, Missouri................................ 265,183 Totals...................................................495,523 *Revised. 1935 K.W .H . 29,952 20,666 94,143* 21,494 6,649 219,666 1936 comp. with 1935 + 7.8% + 11.7 + 8.6 + 18.8 +22.9 +20.7 392,570 +26.2 TRAN SPORTATION Statistics of transportation in the Eighth Dis trict during 1936 make the most favorable showing since the predepression era. The St. Louis Terminal Railway, which handles interchanges for 28 connecting lines, interchanged 95,438 loads in December, the highest for the year, and comparing with 91,107 loads in November and 75,413 loads in December, 1935. Loads handled in 1936 totaled 1,066,898, an increase of 18.5 per cent over the 900,581 loads handled in 1935. Passenger traffic of the reporting roads in De cember showed an increase over a year earlier of 14 per cent in number of passengers carried and 24 per cent in revenue. For the year there were in creases of 23 per cent and 20 per cent, respectively, in passengers carried and revenue. For the entire country loadings of revenue freight in 1936 totaled 36,063,307 cars, the highest since 1932, and comparing with 31,504,134 cars in 1935 and 28,179,952 in the depression year, 1932. The Federal Barge Line, which operates be tween St. Louis and New Orleans, carried 103,500 tons in December, against 129,313 tons in November and 98,279 tons in December, 1935. Cumulative total for the year was 1,652,638 tons, the largest of record, and comparing with 1,545,601 tons in 1935. Express business in this area during December showed an increase of 17 per cent in the volume of shipments handled and of 21 per cent in revenue. The volume of holiday traffic was the largest since 1929. Page 6 thousands) Evansville .. Little Rock Louisville .. Memphis .... St. Louis.... New construction Permits Cost 1935 1936 1936 1935 31 $ 40 $ 75 11 23 6 71 8 85 33 357 106 165 99 2,297 187 2,802 141 5,509 175 Dec. Totals 479 Nov. “ 477 Oct. “ 812 290 428 582 8,274 1,867 1,144 3,178 1,194 968 Repairs, etc. Permits Cost 1935 1936 1935 1936 87 $ 52 $ 23 36 73 36 25 10 29 51 18 98 152 105 62 118 160 101 187 1,616 501 600 677 329 465 682 344 1,865 335 224 557 389 The following table shows the comparative totals for the years 1936 and 1935: (Cost in thousands) New construction Permits Cost 1936 1935 1936 1935 Totals ....... 6,712 5,536 $24,805 $14,244 1936 7,162 Repairs, etc. Permits Cost 1935 1936 1935 7,655 $4,740 $5,645 POSTAL RECEIPTS Returns from the five largest cities of the dis trict show an increase of 27.3 per cent in combined postal receipts for the final quarter of 1936 over the preceding three months, and an increase of 13.1 per cent as contrasted with the last quarter of 1935. Detailed figures follow : Quarter Ending Dec. 31, 1936 Evansville ........... $ 184,324 Little Rock......... 212,756 833,957 Louisville ........... Memphis ............. 869,507 St. Louis............. 3,027,321 Totals ................. 5,127,865 Sept. 30, 1936 $ 154,625 205,372 674,001 599,258 2,396,142 4,029,398 Dec. 31, Comp, last Qrs. 1935 1936 and 1935 $ 159,162 + 9.5% 189,016 +12.6 745,353 +11.9 649,085 +34.0 2,791,218 + 8.5 4,533,834 +13.1 The following table shows the comparative totals for the years 1936, 1935 and 1934: 1936 Totals ............. $17,385,578 1935 $16,018,830 1934 $15,147,110 1936 comp, with 1935 1934 + 8.5% + 14.8% LIFE INSURANCE Sales of new, paid-for, ordinary life insurance in states including the Eighth District during Decem ber, the preceding month, and a year ago, together with the cumulative totals for the twelve months during 1936 and the comparable period in 1935 are shown in the following table: (In thousands Dec., Nov., of dollars) 1936 1936 Arkansas.......... $ 2,874 $ 2,546 $ Illinois.............. 47,310 37,830 Indiana............. 12,265 9,620 Kentucky......... 5,266 4,875 Mississippi....... 3,500 3,038 Missouri........... 16,160 13,643 Tennessee........ 6,589 5,218 Totals........... 93,964 United States... 560,729 76,770 477,569 Dec., For the years 1935 1936 1935 2,598 $ 30,137 $ 30,101 47,420 474,920 503,003 11,988 125,558 136,357 5,784 59,809 64,125 2,749 29,769 27,021 15,437 170,002 176,524 6,055 64,598 66,506 Cumul. change + 0.1% — 5.6 — 7.9 — 6.7 +10.2 — 3.7 — 2.9 92,031 954,793 1,003,637 — 4.9 575,600 5,927,563 6,181,255 — 4.1 FINANCIAL The past thirty days have been marked by a further moderate expansion in demand for credit from general borrowing sources in the Eighth Dis trict. Because of the high prices realized for tobacco, requirements in sections where tobacco is an im portant crop are considerably higher than has been the case in recent years. In the principal wholesal ing and jobbing centers, liquidation has been on an extensive scale, with the result that at mid-January there was little change in the loan and discount item as contrasted with a month earlier. Despite a noticeable reduction in commitments of flour milling and grain handling interests, the total volume of this class of loans is considerably larger than a year and two years earlier. The usual augmented demand for funds in late December to meet interest and divi dend disbursements was in evidence, but its effect on the entire situation was negligible, these opera tions amounting largely to a shifting of credits. Re quirements of field seed interests are somewhat above the average at this season during recent years. Member Banks — During the four-week period ended January 13, total loans and investments of reporting member banks in the principal cities in creased 0.3 per cent. This increase was accounted for primarily by an increase of 1.3 per cent in total investments, total loans decreasing by the same amount. The drop in total loans was due to a de crease in all other loans; however, this same item showed an increase of 20.5 per cent over a year ago. Gross deposits on January 13 were greater by 13.4 per cent and 1.2 per cent, respectively, than a year and a month earlier. Reserve balances showed an increase of 7.8 per cent during the four weeks and were 18.8 per cent greater than on January 15, 1936. A composite statement of the principal resource and liability items of the reporting member banks is given in the following comparative table: Jan. 13, (In thousands of dollars) 1937 Loans and discounts (incl. rediscounts) : Secured by U. S. Gov’ t obligations and other stocks and bonds........... ..$ 76,703 All other loans and discounts........... .. 205,253 $ 78,679 206,875 $ 66,270 170,295 Total loans and discounts..................... .. 281,956 285,554 236,565 Investments: U. S. Gov’t securities......................... ,, 238,491 Other securities.................................... .. 172,421 232,679 172,878 232,961 156,028 Total investments.................................... .. 410,912 405,557 388,989 Demand deposits....................................... .. 783,182 Time deposits............................................. .. 185,346 771,436 185,196 675,871 177,847 968,528 956,632 853,718 Reserve balances with F. R. Bank..... 130,678 Cash in vault............................................. .. 12,126 Bills payable and rediscounts with Federal P psptvp ’Rank-_____ ___ 121,252 12,607 110,023 10,940 Gross deposits....................................... Dec. 16, 1936 Jan. 15, 1936 Number of banks reporting..................... 24 24 24 The total resources of these banks comprise approximately 62.8% of all member banks in this district. The aggregate amount of savings deposits held by selected banks on January 6 was 0.1 per cent greater than on December 2, 1936, and 5.9 per cent in excess of the total on January 8, 1936. Federal Reserve Operations — Changes in the principal assets and liabilities of this bank appear in the following table: Jan. 18, (In thousands of dollars) 1937 Industrial advances under Sec. 13b....... $ 409 139 Other advances and rediscounts............... 86 Bills bought (including participations).. U. S. securities........................................... 116,119 Dec. 18, 1936 $ 461 146 87 115,809 Jan. 18, 1936 $ 476 18 87 123,200 Total earning assets............................... 116,753 116,503 123,781 Total reserves ............................................ 273,369 Total deposits ........................................... 204,960 F. R. Notes in circulation....................... 180,007 271,215 194,127 186,194 216,383 172,036 161,017 Industrial commitments unde? Sec. 13b 1,313 1,134 2,121 Ratio of reserve to deposit and F. R. Note liabilities................... 71.0% 71.3% 65.0% The rates of this bank for accommodations un der the Federal Reserve Act remain unchanged. Complete schedule of rates follow s: 2% per annum for rediscounts and advances to member banks, under Sections 13 and 13a. 2 Yt.% per annum for advances to member banks, under Section 10b. 4 J4% per annum for rediscounts, purchases and advances to member banks (including nonmember banks and other financing institu tions), under Section 13b. J4% flat for commitments not exceeding six months to member banks (including nonmember banks and other financing institutions), to rediscounts, purchase or make advances, under Section 13b. • 5 ^2 % per annum for advances to established industrial or commercial businesses, under Section 13b. 4% per annum for advances to individuals, firms or corporations (in cluding nonmember banks), secured by direct obligations of the United States, under Section 13. 5Yz% per annum for advances to individuals, partnerships and corpora tions (excluding nonmember banks), under Section 13. At downtown St. Louis banks as of the week ended January 15, interest rates charged were as follow s: Customers’ prime commercial paper 1 to 5 per cent, collateral loans 2 to 6 per cent, loans se cured by warehouse receipts 1 ^ to 5y2 per cent, and cattle loans 4y2 to 6 per cent. Debits to Individual Accounts — The following comparative table of debits to individual accounts reflects spending trends in this district: Dec., (In thousands of dollars) 1936 East St. Louis and Natl. Stock Yards, 111..$ 37,067 El Dorado, Ark.... . 5,020 Evansville, Ind.... . 36,960 Fort Smith, Ark..... 13,700 Greenville, Miss..... 8,048 2,652 Helena, Ark..........„ Little Rock, Ark.. . 42,845 Louisville, K y...... . 205,613 Memphis, Tenn.... . 171,073 Owensboro, Ky.... . 7,087 9,563 Pine Bluff, Ark.... . 9,397 Quincy, 111............ . St. Louis, M o...... . 673,620 2,776 Sedalia, M o.......... Springfield, Mo.... 15,992 *Texarkana, Ark..„ 9,371 Nov., 1936 Dec., 1935 $ 31,208 3,758 32,919 11,170 7,087 2,888 36,709 156,747 172,355 5,520 10,004 7,408 541,762 1,881 12,484 7,546 $ 30,548 4,400 24,925 10,787 4,250 1,944 33,113 155,364 135,785 4,877 7,546 6,784 568,720 2,290 12,453 6,925 + 18.8% + 33.6 + 12.3 +22.6 + 13.6 - 8.2 + 16.7 +31.2 - 0.7 +28.4 - 4.4 K26.8 (-24.3 1-47.6 -28.0 -24.2 + 21.3 % + 14.1 + 48.3 +27.0 + 89.4 + 36.4 + 29.4 + 32.3 + 26.0 +45.3 + 26.7 +38.5 + 18.4 +21.2 + 28.4 +35.3 Totals........... 1,250,784 1,041,446 1,010,711 +20.1 + 23.8 Dec. 1936 comp, with Nov. 1936 Dec. 1935 *Includes one bank in Texarkana, Texas, not in Eighth District. Note — Above figures include total debits charged by banks to check ing accounts, savings accounts, certificate of deposit accounts, and trust accounts of individuals, firms, corporations and U. S. Government. Charges to accounts of banks, debits in settlement of clearing house balances, payments of cashier’s checks, charges to expense and miscel laneous accounts, corrections and similar charges, are not included. (Completed January 25, 1937) Page 7 NATIONALf SUMMARY OF BUSINESS CONDITIONS B Y BO A R D O F G O V E R N O R S O F F E D E R A L R E SE R V E SYSTEM The Board’s index of industrial production showed a sharp advance in December after allowance is made for the usual sea sonal changes. There was a marked expansion in employment and payrolls and retail trade continued at high levels. Production and Employment — Actual volume of industrial production showed little change from November to December, at a time when a sharp seasonal decline is usual, and the Board’s adjusted index advanced from 114 to 121 per cent of the 1923-1925 average. There was a further rise in activity at textile mills to the highest level on record and output of other nondurable manu facturers was maintained. Declines in production of steel and lumber were smaller in December than are usual in that month. At automobile factories there was a marked increase in output. In the first three weeks of January activity at steel mills increased Distribution— Retail sales in December increased seasonally at department stores and by more than the usual seasonal amount at variety stores and mail order houses serving rural areas. Freight-car loadings showed a smaller decrease than is usual in December, and the Board’s seasonally adjusted index advanced further. Commodity Prices — Wholesale prices, for both industrial and agricultural commodities, continued to advance in the second half of December and the first half of January. There were marked increases in prices of industrial raw materials, particularly nonferrous metals, lumber, hides, and wool; prices of a number of finished goods, such as steel products, paper, and textiles also advanced. Since the middle of January there has been a decline in prices of commodities traded in on the organized exchanges. INDUSTRIAL PRODUCTION 1929 1930 1931 1932 1933 1934 1935 W H O LESALE 1936 1932 1937 1933 1934 P R IC E S 1935 1936 1937 Index of physical volume of production, adjusted for seasonal variation, 1923-1925 average = 100. B y months, January, 1929, through December, 1936. Latest figure, December, 121. Indexes compiled by the United States Bureau of Labor Statistics, 1926 = 100. B y weeks, 1932 to date. Latest figures are for week ending January 16, 1937: Farm products, 92.3; foods, 87.3; other commodities, 83.1. somewhat, but there was a decline in assemblies of automobiles as a result of shutdowns occasioned by strikes. Average daily coal production decreased seasonally from November to December, while output of crude petroleum increased contrary to seasonal tendency. Value of construction contracts awarded, according to figures of the F. W. Dodge Corporation, showed a seasonal de crease in December. Factory employment expanded further be tween the middle of November and middle of December, contrary to the usual seasonal movement. Increases were general among the durable goods industries, with the largest advances at plants Bank Credit — Loans and investments of reporting member banks in leading cities declined in the first three weeks of Janu ary, as a result of reductions in commercial loans and in loans to brokers. The decrease in loans reflected in part the retirement of notes issued by the Commodity Credit Corporation last July and in part repayment of other loans, which had increased sharply in preceding weeks. Holdings of Government obligations declined further at New York City banks but increased at banks in other leading cities. Demand deposits decreased at the turn of the year, but thereafter increased somewhat, reflecting chiefly the return of currency from holiday use. M E M B E R B A N K L O A N S AN D IN V E S T M E N T S BILLIONS OF DOLLARS !LOANS Othei'Loans ___ to Customers J Loans on Sec. to Customers Loans to Brokers cmd Dealers anaper ces /P i ’ 34 Indexes of number employed and payrolls, without adjustment for seasonal varia tion, 1923-1925 average = 100. By months, January, 1929, through December, 1936. Indexes compiled by the United States Bureau of Labor Statistics. Latest figures; December, unadjusted, employment 97.7; payrolls 94.6. producing automobiles and machinery. In the nondurable goods industries there were marked increases in the number employed at textile mills and at shoe factories. Reflecting principally higher levels of employment and advances in wage rates, factory payrolls increased sharply in December, particularly at steel mills and in the textile industries. In retail trade, employment rose more than seasonally and in most other non-agricultural pursuits there were increases, when allowance is made for seasonal changes. Page 8 1935 \ 1936 1937 Wednesday figures for reporting member banks in 101 leading cities, September 5, 1934, to January 20, 1937. Loans on real estate and loans to banks excluded. The rate on 90-day bankers’ acceptances was raised 1/16 of 1 per cent on January 13 and now stands at 1/4 of 1 per cent. Mar ket discount rates on Treasury bills have also increased, with bills offered in the week ending January 16 selling at a discount of over 1/3 of 1 per cent, as compared with a rate of about 1/10 of 1 per cent early in December. Excess reserves of member banks increased from $1,880,000,000 to $2,130,000,000 in the four weeks ending January 20, reflecting largely the post-holiday return flow of currency from circulation.
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