Full text of Review (Federal Reserve Bank of St. Louis) : January 30, 1942

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BUSINESS CONDITIONS
Monthly Review of Agriculture, Industry, Trade and Finance
Released for Publication in Afternoon Papers of January 30, 1942

FEDERAL

RESERVE

BANK

OF

ST.

LOUIS

C O U R T E S Y G R A N IT E C IT Y S T E E L C O .

Eighth District Steel Plant

SUMM ARY OF EIGHTH DISTR ICT

I

N D U S T R Y and trade in the E ighth D istrict
held at very high levels during December and
early January. The gain in volume of trade in
December was more than seasonal. In past years
industrial activity has dropped som ew hat in the
holiday period, but this year it was m aintained at
close to capacity in most lines. Such declines as
were evidenced were due prim arily to shortages of
materials.
Production for war needs is being intensified. The
shift to an all-out w ar effort is underw ay. This effort
is already pressing hard upon m anufacture for civil­
ian needs and will press harder in the future. De­
cember arm s expenditure was at an annual rate of
$24 billion. This rate will have to be stepped up
trem endously to achieve the goal of $56 billion dur­
ing the fiscal year 1943. This means th at m ost dur­
able goods producers m ust either shift to production
of arm am ents or essential producers goods. Produc­
tion of additional durable goods will be restricted
to that necessary for replacem ent and repair of
m achinery used in m anufacturing civilian goods es­
sential to our w ar effort. Industries engaged in
m anufacture for direct non-essential civilian needs
will thus be forced to shift over to w ar production
where possible or get along w ithout replacem ent
m achinery and possibly w ithout full labor forces.
Em ploym ent should increase in coming months.
W hile individual civilian businesses may be badly
hurt in the transition period now taking place,
workers in such lines are likely to be trained and
absorbed quickly by w ar industries. Construction
labor which was to have supplied a pool of workers
when the construction program declined are now
busily engaged in a new program th at may well
exceed th at of 1941. The expansion of the armed
services will also absorb a large portion of the avail­
able labor pool.
Reflecting chiefly increased w ar effort the rate of
industrial production in the U nited States rose to a
new peak in December. The index of the Board of
Governors of the Federal Reserve System, adjusted
for seasonal variation, climbed to 168 per cent of the
1935-1939 average, as compared w ith 166 in Novem ­
ber and 163 in October. The December index was 21
per cent above the level of a year ago. Several
m onths ago it was thought th at industrial produc­
tion had reached a plateau from which further
rises would be small and difficult to attain, but as
more and more facilities come into being the rate
continues to advance.
O utput of bitum inous coal at mines in this area
Page 2



in December increased 4 per cent over November
and was 8 per cent over December, 1940. Produc­
tion during 1941 was 8 per cent greater than the
previous year. Steel ingot production at mills in the
district was curtailed in December due to repairs
and scrap shortages. F u rth er decline may be evi­
denced in the future as scrap supplies dwindle.
December consumption of electricity by industrial
users was 2 per cent above Novem ber and 15 per
cent more than a year ago. T otal industrial con­
sum ption during 1941 was 24 per cent greater than
in 1940. Dollar value of building perm its granted
in December was 42 per cent less than in November
and 52 per cent less than in December, 1940. For
1941 the value exceeded th at of 1940 by 38 per cent.
Sales of ordinary life insurance in E ighth D istrict
states in December were 49 per cent and 37 per cent
greater, respectively, than a m onth and a year ago.
Revenue freight carloadings of railroads operating
in the E ighth D istrict during the four weeks ending
December 27 were 4 per cent less than a m onth
earlier but 14 per cent above the sim ilar period last
year. Load interchanges for 25 connecting lines
handled by the Term inal Railroad Association of St.
Louis during December were slightly less than in
November and 27 per cent greater than in Decem­
ber, 1940. Cum ulative total of interchanges for 1941
exceeded those of 1940 by 28 per cent. Estim ated
tonnage moved by the Federal Barge Lines on the
M ississippi River between St. Louis and New O r­
leans in December was 50 per cent less than in
November and 3 per cent above a year ago. Cum u­
lative tonnage for 1941 exceeded th at of 1940 by 29
per cent.
Retail trade showed sizable gains over a month
and a year ago. W holesaling was slightly below No­
vem ber but well above last year. December sales of
departm ent stores in the principal cities of the Dis­
trict were 51 per cent more than in Novem ber and
20 per cent greater than a year earlier. T otal sales
for 1941 were 21 per cent above those for 1940.
Sales in December of all w holesaling and jobbing
firms whose statistics are available to this bank
were 2 per cent below the preceding m onth and 34
per cent greater than a year ago.
Debits to individual accounts in December were
18 per cent above November and 31 per cent above
a year ago. Gross deposits rose to a new peak as
investm ents increased and loans declined slightly.
The cost of living for the E ighth D istrict as m eas­
ured by the indexes for St. Louis and M emphis con­
tinued to rise but at a lower rate than was evident
in previous months.

D ET A IL ED SUR VE Y OF D IST RI CT
IR O N A N D S T E E L

Steel output in this area during late December
and early January was at a lower level than in pre­
ceding m onths, due prim arily to curtailm ent of
scrap supplies. This is in sharp contrast to national
output which was close to a record. A fter operating
at close to capacity for m ost of 1941, furnaces in
this district were forced to cut production sharply
in the last week of December. As of m id-January
the rate of operations in the St. Louis district was
at 78.3 per cent of capacity. This represents a de­
cline of about nine points from a year ago.
The scrap situation has grow n even tighter. Re­
cent cold w eather made collection very difficult and
consequently mill inventories have declined sharply.
W arm er tem peratures are expected to aid in the
gathering of scrap. Also, trade sources expect the St.
Louis area to be placed in a better position by recent
changes announced by the Office of Price A dm inis­
tration with regard to steel scrap price schedules.
Allocation plans have helped m aintain operations at
the present levels, but unless more actual scrap is
delivered here, allocation as such will not relieve the
situation. Allocation of pig iron seems to be w ork­
ing out satisfactorily.
The impact of w ar has intensified demand for all
steel products. It was believed th at cancellation of
sheet orders brought about by stoppage of autom o­
bile production would ease the sheet situation, but
much sheet capacity is now being used for rolling
plates for which demand has increased. In view of
the greatly expanded w ar program laid down by
the President further curtailm ent of civilian con­
sum ption of steel products appears in prospect.
F or the entire country pig iron production in
December broke all previous daily, m onthly, and
annual records. According to the m agazine “Steel”
December output was 5,014,995 tons compared with
Novem ber production of 4,707,194 tons, and Decem­
ber, 1940 production of 4,542,864 tons. Average
daily output in December was 161,774 tons. T otal
1941 production was 55,918,086 tons compared with
46,894,676 tons in 1940, and 35,310,042 tons in 1939.
Steel ingot production in the U nited States in
December was w ithin 1 per *cent of the best on rec­
ord. December output was 7,163,999 tons compared
w ith 6,969,987 tons in November and 6,495,357 tons
a year ago. Production in 1941 totalled 82,927,557
tons, about 25 per cent above 1940 output of 66,981,662 tons.
W H IS K E Y

Of the 58 distilleries in K entucky, 51 were in
operation on Decem ber 31 com paring w ith 46 on




November 30. Production continues at capacity
levels in m ost cases. On January 8 the Office of
Production M anagem ent ordered 60 per cent of the
distilleries in the nation to begin the m anufacture
of industrial alcohol on January 15. This order is
intended to require the use of grain instead of
molasses in the production of alcohol used in the
m anufacture of smokeless powder. It is expected
th at K entucky distilleries will be m aterially affected
by this, and an annual decrease of K entucky State
revenue of about $1,250,000 is estim ated because of
decreased whiskey production.
On A ugust 31, 1941, bourbon whiskey of various
periods of production rem aining in bonded w are­
houses in K entucky am ounted to 4,405,473 barrels,
an all-time high record. This inventory exceeds th at
of April 30, 1941 by 44,058 barrels. Storage of 1941
production am ounts to 1,237,720 barrels, an am ount
exceeded only during the record year 1937 when
1,592,000 barrels were produced. W ithdraw als of
1937 production in 1941 were 503,491 barrels.
A G R IC U L T U R E

Farm ing Conditions — D uring December, mild
w eather prevailed in m ost parts of the E ighth D is­
trict and was generally beneficial to crops and live­
stock. It also perm itted completion of some late
harvesting and fall farm routine which had been
somewhat delayed by heavy fall rains. In southern
Arkansas it was estim ated th at about 50 per cent of
ground for the 1942 cotton crop in th at area was
broken by late December. The severe cold w eather
which spread over m any sections in early January
caused some local damage, particularly to fruit
orchards, but it is too early as yet to assess the
results for the district as a whole.
On January 15 the U. S. D epartm ent of A gricul­
ture announced new 1942 production goals for hogs,
corn for feed, oil-bearing crops, rice, eggs, dry beans,
and vegetables for canning. Rigid crop controls will
be retained on cotton and wheat, and but a small
increase will be allowed for tobacco, since large
stocks of these crops already exist. These new pro­
duction schedules will put a further burden upon
farm ers and farm family workers inasmuch as large
num bers of potential farm laborers have been ab­
sorbed by the arm ed services or by non-agricultural
employment. In addition new farm m achinery pro­
gram s call for production at about 80 per cent of
1940 production, so th at farm m echanization cannot
be greatly increased during coming months.
Total farm value of principal crops in E ighth D is­
trict states showed gains in 1941 over 1940 ranging
from about 29 per cent in the case of M issouri to
Page 3

about 81 per cent in the case of Mississippi. Most
of this increase was due to higher prices since acre­
age increases were very small. The pronounced rise
in the price of cotton and cottonseed accounted for
the very large increases in farm value of crops in
the cotton producing states of the D istrict.
As of December 15 the U nited States index of
prices received by farm ers stood at 143 per cent of
the A ugust, 1909-July, 1913 average, up 6 per cent
from the Novem ber index of 135, and 42 per cent
above the December, 1940 index, which was 101.
Prices received by farm ers in E ighth D istrict states
were appreciably higher than a m onth ago. The
m ost pronounced rise in the past year occurred in
Arkansas where the index was 67 per cent above
December, 1940.
Cotton — The 1941 E ighth D istrict cotton crop
was larger than th at of 1940 and considerably larger
than the average crop for the past eighteen years.
The price of cotton is alm ost twice as high as at the
beginning of the war. M ost of the rise has come in
the past year. In the St. Louis m arket 15/16 m iddling
ranged between 17.55c per pound and 18.90c per
pound between December 16, 1941 and Jan u ary 15,
1942, closing on the latter date at 18.90c per pound.
A year ago the range was from 9.55c to 10.00c, with
the close at 9.90c. W hile the total current domestic
supply of cotton is about double prospective domes­
tic consumption plus exports, a substantial portion
of the stocks is Government-owned. The am ount of
free cotton is about 150 per cent of prospective con­
sumption plus exports, as compared to about 125 per
cent in the 1916-1917 period. Despite this fact the
price rise has been relatively larger during the past
two years than during the corresponding period in
the first W orld W ar.
United States cotton consum ption may increase
during coming m onths due to w ar demands, substi­
tution of cotton for certain im port fibers, and in­
creased civilian demand. The extent of further
expansion in mill output, however, is dependent
largely upon the ability to obtain new and replace­
m ent equipm ent, and upon the available supply of
mill labor. In recent weeks domestic mill activity
has increased to an unusually high level with many
additional mills going into a seven-day week.
Spot cotton m arket activity in the m id-south is
increasing, with demand strong for most qualities
of white grades. Offerings of such grades are a little
more free but are still not sufficient for the demand.
Offerings of the lower grades are sufficient however.
The holding m ovem ent of the higher grade cotton
in this area seems to be continuing w ith very little
of the crop from E ighth D istrict states going into
Page 4




Government loan. As of January 2 about 6 per cent
of E ighth D istrict cotton was in Government loan
as compared w ith alm ost 17 per cent for the country
as a whole.
Domestic state allotm ents of cotton acreage are
about the same as last year. For the cotton produc­
ing areas of E ighth D istrict states the prelim inary
allotm ent is 99.8 per cent of 1941 prelim inary allot­
ment.
Livestock — The production and m arket supply
of hogs in 1942 will be m aterially greater than th at
of any previous year. T he 1941 pig crop for the
U nited States is 18 per cent larger than the fall crop
of 1940 and is the largest of record. The indicated
num ber of sows to farrow in the spring season of
1942 is 28 per cent above the num ber farrowed in
the spring of 1941 and is also the largest on record.
For states in the E ighth D istrict the fall pig crop is
14 per cent over th at of 1940 and 39 per cent over
the ten-year (1930-1939) average. The combined
spring and fall crops of E ighth D istrict states for
1941 is 6 per cent above 1940 production and 27 per
cent above the ten-year average.
There were 3 per cent less cattle on feed in Corn
Belt states on January 1, 1942 than a year ago, ac­
cording to the U. S. D epartm ent of A griculture.
Present indications are th at the net increase in num ­
bers of livestock in 1942 will be even greater than
the increase of about 6 per cent shown in 1941.
Present stocks of feed grains on farm s appear to be
from 5 to 8 million tons larger than for the past
three years. Feeding ratios continue to favor utili­
zation of corn and other feed grains. Recent cold
w eather has brought about heavier feeding require­
ments.
Tobacco — W hen the burley m arkets closed for
the holidays on December 19 a total of 207,000,000
pounds had been sold at an average price of $29.26
per cwt. Auction sales reopened January 5 with
sales for the week at all burley m arkets am ounting
to 67,293,676 pounds at an average price of $30.81
per cwt. T hrough January 9 the season average
price at K entucky m arkets has been $29.57, at T en ­
nessee m arkets, $31.20, and at all others, $27.45.
The highest average price of the season to date at
K entucky m arkets w as-registered on January 12 at
$31.27. Subsequently, prices have tapered off with
State-wide average on January 20 at $26.86 per cwt.,
$4.41 below the season’s high.
Despite the heavy snow and cold w eather during
the early part of January, large quantities of burley
were sold with demand strong for all grades. By
January 10 it was estim ated th at 70 per cent of the
crop had been sold w ith very little delivered to the

Burley Growers Co-operative Association. To date
K entucky burley grow ers have received nearly $57,000,000 for tobacco sold, w ith estim ates for final
total income ranging from $70,000,000 to $75,000,000.
For the entire 1940 crop, grow ers received but
$46,698,784.
Green River and stem m ing district m arkets re­
opened on January 5 w ith a heavy volume of offer­
ings. Prices weakened som ew hat at opening but
have strengthened recently. T hrough January 13
total sales for the season were 8,375,266 pounds at
an average price of $11.92 per cwt. This represents
a rise of about 4c per cwt. from the pre-holiday sea­
son average. A pproxim ately ten per cent of total
m arketings of the crop have been taken by the
F arm ers Co-operative Association.
Dark-fired m arkets opened in the eastern and
w estern districts betw een January 5 and 7. Sales
were light because of cold and snow which made it
difficult to strip and deliver tobacco. Prices were
considerably above last season’s opening week, being
from $2.00 to $5.00 per cwt. higher on heavy leaf
grades. Dom estic snuff dealers are buying strongly
w ith trade reports indicating an increased demand
for tobacco for the m anufacture of snuff and chew­
ing tobacco. Increased use of these products is re­
ported in defense plants and the arm y where sm ok­
ing is restricted at certain times.
Reopening of one-sucker m arkets on January 2
brought a price rise of from 25c to $2.00 per cwt.
T hrough January 7 total sales for the season were
8,749,394 pounds at an average price of $11.50.
W in ter W heat — Acreage seeded to w inter w heat
in E ighth D istrict states according to the U. S.
D epartm ent of A griculture totals 4,869,000, which is
19 per cent less than the 6,040,000 acres seeded in
1940, and 29 per cent less than the ten-year (19301939) average of 6,878,000 acres. U nfavorable autum n
w eather and heavy rainfall curtailed planting in cer­
tain areas. December 1 condition varied from 66 per
cent in M issouri to 90 per cent in Kentucky. Con­
dition in Illinois and M issouri was below th at of the
same date in 1940, in Indiana and Tennessee it was
the same, while K entucky and A rkansas showed
im provem ent from a year ago. Indicated 1942 pro­
duction is 68,342,000 bushels, or 32 per cent less
than 1941 production of 100,736,000 bushels, and 36
per cent less than the ten-year (1931-1940) average
of 106,516,300 bushels.
W arm w eather in late December brought some
grow th to w inter wheat, but low January tem per­
atures may have damaged some of the crop, espe­
cially in M issouri and central Illinois where there
was little snow to give adequate protection to fields.




Stocks of w heat on farms in E ighth D istrict states
on January 1 were 23,362,000 bushels as compared
with 24,328,000 a year earlier and the 1931-1940
average of 23,790,000. F or the U nited States wheat
stocks were considerably in excess of both a year
ago and the ten-year average.
COST OF L IV IN G A N D PR IC ES

For the larger cities in the U nited States, the cost
of living rose 0.3 per cent betw een Novem ber 15 and
December 15 and 9.8 per cent since the beginning of
the war in 1939. The rate of increase again declined
during the past m onth. Living costs in St. Louis
rose 0.7 per cent in the past m onth and 10.2 per
cent since September, 1939. In Memphis the rise
was 10.7 per cent since the outbreak of war.
A prim ary factor in lowering the rate of increase
in cost of living this past m onth has been the very
small change in the cost of food. Food expenditures
account roughly for one-third of total expenditures
for living. For the U nited States the average of all
food costs was unchanged from Novem ber 18 to
December 16. Seasonal declines for pork, eggs, and
oranges, and lower b u tter prices offset m oderate
increases in other food prices. E ighth D istrict cities,
however, did not follow the average. Food prices in
Louisville declined 0.4 per cent. Those in St. Louis
advanced 0.4 per c e n t; in Memphis, 0.7 per c e n t;
and in Little Rock, 1.0 per cent.
W holesale prices of commodities have moved up
rapidly in recent weeks, w ith farm product prices
leading the advance. For the week ending January
10, the index for all commodities stood at 95 per
cent of the 1926 base, the highest point in 12 years,
representing a rise of 2.0 per cent in the past month,
and 18.5 per cent in the past year.
EM PLOYM ENT

Total civil non-agricultural employment in No­
vember was 40,693,000, a decrease of 83,000 from
the October level, but an increase of 3,165,000 from
a year ago. A drop of 70,000 in m anufacturing em­
ployment accounted for much of the m onth’s net
decline, although this decrease was less than sea­
sonal. Mining, transportation and public utilities,
and finance and service employment were less than
October totals while trade and construction employ­
ment showed gains. The rise in construction employ­
ment was due entirely to Federal building as a sea­
sonal decrease occurred in non-Federal construction
N on-agricultural employment in E ighth D istrict
states in Novem ber was 5,753,000 as compared
with 5,764,000 in October and 5,119,000 a year
earlier. Only M issouri and A rkansas in this district
showed gains from October of 1.0 per cent and 3.5
Page 5

per cent, respectively. T he greatest decline was
registered by M ississippi with 1.8 per cent. K en­
tucky showed no change from a month ago. In the
past year all E ighth D istrict states have shown
large increases in em ploym ent with Missouri exhib­
iting the greatest, 17.9 per cent, and Mississippi the
smallest, 7.2 per cent.
B A N K IN G A N D FIN A N C E

POSTAL RECEIPTS

Page 6



Sept. 30,
1941
$ 195,654
252,924
772,398
745,576
2,775,132
4,741,684

Dec. 31,
1940
$ 215,665
257,192
877,376
901,182
3,267,824
5,519,239

November
1940
1941
$23,148
$45,021
50,230
. . , 72,551
. 39,864
29,561
9,922
13,677
31,466
34,520
M ississippi. . .
43,680
32,177
26,522
18,121
Tennessee . . . ___

Cumulative for 11 months
1941
1940
1939
$132,956
$229,116
$147,752
641,701
514,380
475,802
277,729
348,564
254,574
151,882
129,017
122,003
135,845
201,350
152,704
362,873
274,496
251,252
116,862
171,408
122,937
2,106,894 1,604,219 1,504,090

(In thousands
of dollars)

275,835

194,625

RECEIPTS A ND SH IP M E N T S AT N A T IO N A L STOCK YARDS

A som ew hat smaller demand for credit seems to
have prevailed in the E ighth D istrict during the
past month. The im petus to credit demand given
by the extended program of forward buying in
earlier m onths has apparently slowed down. Con­
ditions brought about by the war have tended to
freeze certain lines of credit, notably with respect to
borrow ers dealing in automobiles and metal prod­
ucts. Also, until m anufacturing plants engaged in
civilian production are able to shift over to war
production, at least in part, there may be a lessened
demand from such sources due to inability to obtain
raw m aterials and machinery. However, banks lo­
cated in some agricultural communities and certain
areas where war production or construction of new
plants is going on report th at credit demand is still
rising., The enlarged farm program coupled with
higher farm prices may increase demand for agri­
cultural credit.
Member Banks — Total loans and investments of
reporting m ember banks in the principal cities of the
district on January 14,1942 were virtually unchanged
from December 17, 1941, but were 23 per cent above
a year ago. Investm ents rose 2 per cent in the month,
reflecting chiefly increased purchases of T reasury
notes and bills. Loans declined 2 per cent during
the period. Both loans and investments were 23
per cent over the corresponding date a year ago.
Gross deposits reached another new peak on Jan­
uary 14, standing at $1,449,511,000, up 18 per cent
in the year. Total reserve balances increased 12
per cent in the four-week period and were three per
cent above the comparable date last year. A ggre­
gate am ount of savings deposits on January 7 was
1.1 per cent and 1.5 per cent, respectively, below a
m onth and a year ago.
Since the last issue of this review, the Maries
County Bank, Vienna, Mo., and the M ontrose Sav­
ings Bank, M ontrose, Mo., became members of the
Federal Reserve System.
Quarter ending : Dec. 31,
1941
E van sv ille......... $226,800
301,798
L ittle Rock
L o u is v ille ......... 961,015
M em phis............ 1,006,659
St. L o u is............ 3,510,343
T o ta ls............ 6,006,615

FARM INCOM E IN C L U D IN G GOVERNM ENT
B E N E F IT PAYM ENTS

Comp. 4th
1941 and :
h 5%
- -17
-10
-12
- 7
+ 9

R eceipts
D ec.,
N ov.,
D ec.,
1941
1941
1940
Cattle and C a lv e s ... . .10,5,076 118,950 99,484
H o g s .............................. ..2 9 7 ,9 8 5 224,570 337,069
2,292
H orses and M ules . . . . 2,014
1,210
. . 44,493 52,144 37,188

Shipments
D ec.,
N ov.,
D ec.,
1940
1941
1941
39,852 45,721 32,689
80,456 42,146 87,646
1,970
2,252
1,182
4,568
6,039
4,519

449,568 397,956 474,951

126,846

96,158 126,036

W H O LE SA LE PRICES IN TH E U N IT E D STATES
Bureau of Labor
Statistics
(1 9 2 6 = 1 0 0 )

Jan.
10,,’42

A ll C om m odities. . 95.0
Farm Products . 98.8
92.5
94.3

Jan.
3 /4 2

Dec.
13/41

Jan.
11/41

94.3
96.9
91.9
94.1

93.1
92.8
90.4
93.8

80.2
71.0
73.0
84.4

Jan. 10/42 comp, with
Dec. 13/41 Jan. 11/41
+
+
+
+

COST OF LIV IN G

Bureau of Labor
Statistics
(1935-39= 100)

Dec. 15,
1941

N ov. 15, Sept. 15,
1941
1939

U nited S ta te s.........
110.5
110.2
109.8
St. L o u is..............
110.6
*
111.1
M em phis..............
*M onthly statistics not available.

2.0.%
6.5
2.3
0.5

f-18.5%
-39.2
-26.7
-11.7

D ec. 15/41 comp, with
N ov. 15/41 Sept. 15/39

100.6
10.0.4
100.4

+
+

0.3%
0.7

+ 9.8%
+ 10.2
+ 1 0 .7

COST OF FOOD

Bureau of Labor
Statistics
(1935-39= 100)

Dec. 16,
1941

U . S. (51 cities) . . .
St. L o u is..............
Little R ock.........
L o u is v ille ............
M em phis..............

N ov. 18 ,
1941

113.1
117.5
115.5
113.7
113.1

Dec. 17,
1940

Dec. 16/41 comp, with
N ov. 18/41 Dec. 17/40

97.3
99.3
96.0
95.9
95.6

113.1
117.0
114.4
114.1
112.3

-0 .- %
+ 0.4
+ 1.0
— 0.4
+ 0.7

+ 16.2%
+ 18.3
H[-20.3
(-18.6
+ 18.3

IN D E X E S OF EM PLO YM ENT IN M ANUFACTURIN G
IN D U S T R IE S BY M ETRO PO LITAN AREAS
Bureau of Labor
Statistics
Oct.,
(1937=10.0)
_____
1941
E van sville..................
90.9
L ou isville..................
119.2
M em phis..................... 118.0,
St. L o u i s .................. 121.8
* Revised

Oct.,
_____
1940
77.3
106.0
104.9
100.8

Sept.,
_____
1941
92.0
116.6*
106.6*
120.8

O ct./41 comp, with
S ep t./4 1
Q c t./4 0

— 1.2%

+ 2.2
+ 1 0 .7
+ 0.8

+ 1 7 .6 9
+ 1 2 .5
+ 12.5

+20.8

B U IL D IN G PERM ITS

N ew Construction
N umber
Cost
1941 1940
1941
1940

( Cost in
thousands)
E v a n s v ille .. .
L ittle R ock . .
L o u is v ille __

27
11
54
24
109
49
366
364
149
177
Dec. T o ta ls. .
703
627
Nov.
“
787
823
Year “
. 12,493 10,465

$ 104
109
206
586
293
1,298
2,249
36,253

$

47
106
126
1,870
629
2,778
2,005
26,254

Repairs, etc.
Number
Cost
1941 1940 1941 1940
54 $ 60 $ 20.
67
87
60
35
21
28
42
58
26
109
163
136
102
92
257
148
133
491
370
372
465
555
528
474
281
8,326 6,974 7,625 6,565

V A L U E CONSTRU CTIO N CONTRACTS LET
(In thousands
of dollars)

D e c./4 1

N o v ./4 1

T otal 8th D is t.. . $35,271
$23,394
S ou rce: F . W . D odge Corporation.
*Revised.

D e c./4 0
$30,952

D e c./4 1 comp, with
N o v ./4 1 D e c./4 0
+ 53%

+

14%

C O NSUM PTION OF ELECTRICITY

(K .W .H .
in thous.)

N ov.,
N o. of
D ec.,
Custom­ 1941
1941
ers* K .W .H . K .W .H .

E vansville . . . .
L ittle Rock . . .
L o u is v ille .. . . .
.,
Pine Bluff . . . .

4,336
2,426
15,112
4,497
1,355
54,348
. , 333
82,074
^Selected industrial customers.
(In thousands
of tons)

40
35
82
31
20

4,127
2,637
13,605
4,522
1,487
53,779
80,157

December, 1941
D ec.,
1940
compared with
K .W .H , N ov., 1941 D ec., 1940
4,851
2,309
11,572
3,306
927
48,30,5
71,270

+ 5%
— 8
+ 11
— 1
— 9
+ 1
+ 2

— 11%
+
5
+ 31
36
+ 46
+ 13
+ 15

PR O D U C TIO N OF B IT U M IN O U S COAL

U nited States. . . .
I l l i n o i s ..................

D e c./4 1
46,667
5,006

N o v ./4 1

D e c./4 0

42,865
4,366

41,400
4,942

D e c./4 1 comp, with
N o v ./4 1 D e c ./4 0
+ 9%
+ 15

+13%
+ 1

L O A D S IN T E R C H A N G E D F O R 25 R A IL R O A D S
A T ST . L 9 U IS
First nine days
D ec.,’41 N o v .,’41 D ec.,’40 Jan.,’42
Jan.,’41 12 m os.*41 12 mos.MO
1,269,640
989,987
110,,959
111,100
87,281
29,379
25,187
Source : Terminal Railroad A ssociation of St. Louis.
W H O L E S A L IN G
Lines of Commodities
N et Sales
D ata furnished by Bureau of Census,
U . S'. D ept, of Commerce.

Stocks

December, 1941
compared with
N o v .,’41 D ec.,’40

Dec. 31, 1941
comp, with
Dec. 31, 1940

+ 92%
— 4
15
34
64
22
50
34
120
+ 42
33
+ 43
+ 34

Autom otive Su pplies................................ ... — 3%
B oots and S h o e s ........................................ — 10
D rugs and C hem icals......... ....................... - 0 D ry G o o d s ...................................................... — 25
Electrical Su pplies................ .................... ... + 2 4
Furniture....................................................... ... <— 7
G roceries....................................................... ... + 1 5
H ardw are................................................ ..........+ 7
M achinery, Equipment and Supplies. + 2
Plum bing S u p p lie s .................................. ... + 1
Tobacco and its P rodu cts........................ + 9
M iscella n eo u s.............................................. ...+ 1 5
T otal all lin es.............................................. ...— 2

+ 34
+46
+ 30

+24
+47

+34
+ 32

D E PA R T M E N T STO R ES
Stocks
on H and

Stock
Turnover

D ec. 31/41
comp, with
D ec. 31,’40

Jan. 1 , to
Dec. 31,
1941 1940

N et Sales
December, 1941
12 m os.’41
compared w ith
to same
N o v .,’41 D ec.,’40 period ’40

+ 20%
+ 59% + 3 6 %
Ft. Smith, A r k ...
—24
+41
+ 18
L ittle Rock, Ark.
— 29
+23
+61
Pine Bluff, A rk..
—24
+ 53
+ 33
E. St. Louis, 111.
4.26
4.24
+ 23
+
19
— 14
+
57
Quincy, 111............
--1 4
48
16
Evansville, I n d .. .
4.87
28
5.23
— 31
15
— 51
L ouisville, K y .. . .
4.65
32
4.47
--1 7
52
20
St. Louis, M o .. . .
3.12
3.71
49
53
+26
-3 3
Springfield, M o .. .
t
40.
—43
—46
Jackson, Tenn. . .
V.7 3 3*75
—21
+ 28
+ 56
23
M emphis, T e n n ...
3.29
3.38
+ 23
+ 42
22
*A 11 other cities. .
— 18
4.40
4.35
—21
+ 31
8th F. R. D istrict
+51
—20
*E1 Dorado, Fayetteville, A r k .; A lton, Harrisburg, M t. Vernon, 111.;
Vincennes, I n d .; D anville, H opkinsville, K y .; Chillicothe, Mo.
Trading days: D ec., 1941— 26; N ov., 1941— 2 4 ; D ec., 1940— 25.
Outstanding orders of reporting stores at the end of December, 1941,
were 63 per cent greater than on the corresponding date a year ago.
Percentage of accounts and notes receivable outstanding December 1 ,
1941, collected during December, by cities:
Installm ent E xcl. Instal.
Installm ent E xcl. Instal.
Accounts
A ccounts
A ccounts
A ccounts

+

Fort S m ith ..
L ittle R o c k ..
Louisville . . .
Memphis . . . .

. . °/
15
18
30

44%
38
49
47

Q uincy............
St. L ouis. . . .
Other c itie s ..
8 th F. R. D ist.

55%
60
48
53

20%
20
14
20

I N D E X E S O F D E P A R T M E N T S T O R E S A L E S A N D ST O C K S
8th Federal Reserve D istrict (1923-1925 average = 100) :
O ct.,
N ov.,
D ec.,
D ec.,
1940
1941
1941
1941
167
119
133
10,6
101
114
64
108
105
69
92
96
94
41— 24; Dec., 1 9 4 0 --25.
190
115

86

FEDERAL RESERVE O PERATIO NS D U R IN G DECEM BER, 1941
(Incl. Louisville, Memphis, L ittle Rock branches)

Stock
T urnover
Jan. 1 , to
D ec. 31,
1941 1940

Stocks
on Hand
D ec. 31/41
comp, with
D ec. 31,’40

+33% +25%
+28%
+ 30%
3.14
2.81
M en’s Furnishings
+ 42
+28
+21
+ 49
8.46
7.86
Boots and S h o es. .
Percentage of accounts and notes receivable outstanding December 1,
1941, collected during D ecem ber:
M en’s F u rn ish ings....................... 35%
B oots and S h o es.......... ..................35%
C H A N G E S I N P R I N C IP A L A S S E T S A N D L IA B I L I T I E S
F E D E R A L R E S E R V E B A N K O F ST. L O U IS
Change from
Jan. 14,
Dec. 17, Jan. 15,
1941
1942
1941
(I n thousands of dollars)
200

20.0
Industrial advances under Sec. 13b. .........$
Other advances and rediscounts
106,485
U . S. securities.........................................
T otal earning a sse ts......................... ......... 106,685

—
300
—
55
— 6,333
— 6,688

+
—
+
+

T otal reserv es............................................ ......... 661,363
Total deposits ............................................ . . . . 442,864
F. R. N otes in circulation.................. ......... 321,366

+ 30,159
+ 1 4 ,2 5 9
+ 6,491

+ 153,727
+ 57,171
+ 101,687

Industrial commitments under Sec. 1 3 b ..

—




1,194

8

+

19
3,346
3,527

896

Am ounts

RATES OF TH IS BAN K FOR ACCOM M ODATIONS U N D E R
T H E FED ER A L RESERVE ACT
Advances to banks, secured by direct obligations of
the U nited States, under paragraph 13 of section 1 3 ..1 % per annum
A dvances to member banks, secured by direct obliga­
tions o-f the U nited States or by such Government
guaranteed obligations as are eligible for collateral,
under paragraph 8 of section 1 3 ............................................1 % per annum
Rediscounts and other advances to member banks un­
der sections 13 and 1 3 a ............................................................ 1 ^ % per annum
Advances to member banks under section 1 0 (b )................ 2 % per annum
Advances to individuals, firms, and corporations, other
than banks, secured by direct obligations of the
U nited States, under paragraph 13 of section 13............4 % per annum
Industrial advances to member banks, nonmember
banks, and other financing institutions under sec­
tion 13b:
( \ y2 % to
(a) On portion for which such institution is obligated 12 % per annum
(b) On remaining portion — N o charge to financ­
ing institution. Federal Reserve Bank will
retain interest collected from borrower.
Advances to established industrial or commercial < 3 /x 2 % to
businesses under section 13b................................ ................I 5J^% per annum
Commitments to member banks, nonmember banks,
and other financing institutions, under section 1 3 b . . . . l % per annum
Provided: that on commitments issued for periods of 90 days or less the
minimum charge shall be 54 of 1% flat; and further provided, that on
commitments for loans secured by assignment of “ Emergency Plant F acil­
ities Contract” with the U nited States Government, the rate may be as
low as
of 1% per annum.

PRINCIPAL RESOURCE AND L IA B IL IT Y ITEM S
OF REPORTING M EM BER BANKS
Ian. 14,
14.
Jan.
1942

(In thousands of dollars)

Change from
D
'
Dec. 17, Jan.
15,
1941
1941

$284,888 — 7,591 + 64,562
23,557 + 1,458 + 13,626
4,303 —
866 +
316
10,282 —
447
2,506
59,338 —
843 +
712
756 +
182
2,049
77,209 — 2,152 +
9,220
17,363 + 1,498 +
3,225
44,529 + 1,529 +
8,669
U.
231,793 +
588 + 70,234
t 72,239 + 4,936 +
8,818
, 112,706 —
747
1,190
210,894 + 10,028 + 14,222
Demand
631,853 + 14,761 + 89,782
, 187,100 — 1,561
5,036
30,112 + 2,302 + 19,881
Interbank d ep o sits..,................................
502,877 + 2 1 ,9 9 6 + 89,044
B o r r o w in g s ...............................................................................
.........
............
*Other than interbank and Government deposits, less cash item s on
hand or in process of collection.
Above figures are for 24 member banks in St. Louis, L ouisville, M em ­
phis, L ittle Rock and Evansville. Their resources comprise approximately
75% of the resources of all member banks in this district.

Loans to brokers and dealers.........................
Other loans to purchase and carry securities.
Real estate loans...................................................
Loans to banks.......................................................

S P E C IA L T Y ST O R E S
N et Sales
December, 1941
12 m os.’41
compared with
to same
N o v .,’41 D ec.,’40 period ’40

Pieces

Checks (cash item s) han dled ................................
6,3,12,696 $2,048,090,525
Collections (non-cash item s) handled................
155,140
41,555,675
Transfers of funds.......................................................
5,457
552,583,568
Currency received and cou n ted .............................. 12,856,074
44,827,172
Coin received and c o u n t e d ..................................... 12,268,676
1,202,4*6
Rediscounts, advances and com m itm ents.........
19
1,019,000.
N ew issues, redemptions, and exchanges of
securities as fiscal agent of U . S. Govt., etc.
185,794
70,622,137
Bills and securities in custody— coupons clipped 20,745
...............................

(In thousands
of dollars)

D E B IT S T O I N D I V I D U A L A C C O U N T S
D ec.,
N ov.,
D ec., D ec .,*41 comp, w ith
1941
1941
1940 N o v .,*41 D ec. ,*40

El Dorado,
Ark.$
9,076
“
Fort Sm ith,. , . .
22,909
“
3,096
“
L ittle Rock, . . .
62,208
“
Pine Bluff,
15,291
Texarkana, Ark. -Tex.
25,362
E .S t.L .-N a t.S .Y .,111.
65,640,
Q uincy,.............. .. “
12,967
Evansville,
. . Ind.
48,786
L o u isv ille ,___ ..K y . 313,091
Owensboro, . . .
11,2 21
Greenville,......... Miss.
9,057
, .M o. 926,502
“
3,068
“
Springfield,
21,737
.Tenn. 267,765
...........1,817,776

$

7,449
18,546
2,964
53,156
12,694
16,858
55,734
11,295
41,343
257,149
7,641
9,878
759,406
2,407
19,450
254,157
1,530,127

5,807
16,285
2,069
56,162

22 %

10 ,112

20

9,951
44,707
9,648
38,943
214,516
7,354
5,853
729,650
2,396
16,651
207,849
1,377,953

50
18
15
18

$

24
4
17

22

47
8

+ 22
+ 27
+ 12
5
+
+ 19

+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+
+

56%
41
50
11

51
155
47
34
25
46
53
55
27
28
31
29
32

C O M M E R C IA L F A I L U R E S I N E IG H T H F. R. D IS T R IC T
D ec.,’41 comp, with
D ec.,’41
N o v .,’41
D e c.,’40
N o v .,*41 D ec.,’40
N u m b e r ................
25
L iabilities.............. $224,000
Source: Dun and Brad street.

(Completed January 24, 1942)

34
$426,000

40
$443,000

— 26%
— 47

— 37%
— 49

Page 7

INDUSTRIAL

N A TIO N A L SUM M ARY O F C O N D ITIO N S

PRODUCTION

BY B O 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 S E R V E SY ST E M

Industrial activity declined less than seasonally in December and the first
half of January, retail trade continued in large volume, and prices of many
commodities rose further.

Federal Reserve index of physical volume of production,
adjusted for seasonal variation, 1935-39 average = 1 0 0 . By
months, January, 1935 to December, 1941. Latest figure
168.

FREIGHT-CAR LOADINGS

Production— In December total volume of industrial output declined less
than is usual at this season and the Board’s adjusted index rose further to
168 per cent of the 1935-1939 average. In the armament industries output
continued to advance and at machinery plants activity rose sharply, follow­
ing little change in November. Output of materials, such as iron and steel
and nonferrous metals, continued at peak levels and lumber production showed
less than the usual seasonal decrease. Automobile production declined sharply
in the latter half of December, following announcement of sharp reductions
in passenger car quotas, but early in January quotas for that month were
increased and output rose considerably. Sales of new automobiles to civilians
were halted at the beginning of January pending the establishment of a
rationing system.
Textile production declined somewhat in December owing to a reduction
in activity at cotton mills from the record level reached in November. Out­
put of wool and rayon textiles was sustained at about capacity. Output of
manufactured food products and shoe production showed about the customary
seasonal declines. Coal output decreased somewhat in December, while petro­
leum production and mining of nonferrous metals were maintained at the
high November rate.

Federal Reserve index of total loadings of revenue freight,
adjusted for seasonal variation. 1935-39 average = 100.
Subgroups shown are expressed in terms of points in the
total index. B y months, January, 1935 to December, 1941.

WHOLESALE

PRICES

Value of construction contracts awarded in December declined less than is
usual at this time of year, according to figures of the F. W. Dodge Corpora­
tion. Awards for public projects showed little change, while those for resi­
dential construction declined less than seasonally following a considerable
reduction in November.
Distribution — Volume of retail trade, which had been large during most
of the autumn, increased less than seasonally in December. This reflected to
some extent a temporary slackening in sales around the middle of the month
following this country’s entry into the war. In the first half of January
sales at department stores showed less than the customary sharp reduction
from the Christmas buying peak and were at a level substantially higher in
comparison with a year ago than that prevailing in other recent months.
Freight-car loadings of most products decreased by less than the customary
seasonal amount in December. Coal shipments declined considerably in the
latter part of the month but then increased sharply in the first half of Jan­
uary. Shipments of miscellaneous freight, which includes most manufactured
products, were maintained in large volume for this season of the year.
Commodity Prices — Wholesale commodity prices increased sharply when
this country entered the war early in December and then showed little change
during the latter half of the month. In the first half of January prices again
advanced, the principal increases being in agricultural commodities and
chemicals.

Bureau of Labor Statistics’ indexes, 1926 = 100. “ Other”
includes commodities other than farm products and foods.
B y weeks, January 5, 1935 to week ending January 17, 1942.

Federal action to impose maximum prices was accelerated with the out­
break of war and applied on a wider scale to industrial products. Ceilings
were extended to products in later stages of production and distribution and
in most instances covered consumers’ goods. Certain of the actions, like those
relating to rubber and wool products, were associated with new Federal pro­
duction restrictions. In this period also there were advances in a number of
price ceilings established earlier.
Bank Credit — Total loans and investments of banks in leading cities,
which had advanced sharply during the first half of December, have subse­
quently shown little further change.

1935

1936

1937

1938

1939

1940

1941

W eekly averages of daily yields of 3- to 5-year tax-exempt
Treasury notes, Treasury bonds callable after 12 years, and
average discount on new issues of Treasury bills offered
within week. For weeks ending January 5, 1935 to Jan­
uary 17, 1942.

Page 8




Treasury financing in the middle of December and heavy currency with­
drawals during the holiday season absorbed close to 700 million dollars of
excess reserves during the month. About 500 million of this was recovered
in the first half of January, as the result of a decline in Treasury deposits
at the Reserve Banks and a return of currency from circulation. Recent
changes in excess reserves have been almost entirely at banks outside of
New York City.
United States Government Security Prices — Prices of Government
securities were steady in the first half of January, following a decline in
December after the entry of the United States into the war.