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FEDERAL RESERVE BANK OF ST. LOUIS MONTHLY REPORT ON GENERAL BU SIN ESS CONDITIONS IN FEDERAL RESERVE DISTRICT NO. 8 Released for Publication On and After the Afternoon of January 31, 1922 W IL L IA M McC. M AR TIN , CHAIRMAN OF THE BOARD AND FEDERAL RESERVE AGENT E P O R T S of a large majority of correspondents indicate that business during December was not satisfactory. In wholesale and manufactur ing there was a decided dip, sales and shipments showing decreases of from 4 to 12 per cent under November. A great many of the interests, how ever, which showed declines under November, reported very substantial gains over December, 1920. This was true particularly in the matter of sales for forward shipment, increases in this item running as high as 290 per cent, with the general gains most pronounced in dry goods, boots and shoes, hats, clothing, woodenware and hardware. It must be remembered, though, that buying for future delivery in December, 1920, was at an extremely low ebb. In the retail section of distribu tion, which was stimulated by the holiday trade, business was fairly active. The volume was con siderably under that of the same month in 1920, but well up to expectations, and better than indi cated by the early stages of the Christmas shopping. Part of the decrease in Decem ber under N ovem ber is attributed to seasonal considerations. Selling campaigns had been completed, and salesmen were in from their territories for the holidays. Another reason given for the recession was the unseasonably warm weather, which had a tendency to retard the movement of winter merchandise, notably clothing and fuel. The continued weakness in markets for the principal agricultural productions of the dis trict, however, is the chief cause for the setback during the final month of the year. In the rural communities buying is almost ,exclusively on a necessity basis, and the demand centers in cheap and medium-price goods. The first tw o weeks in January were marked by a decided improvement both in tone and actual volum e of business. Salesmen dispatched on the road have sent in good orders, including an excel lent showing for early spring delivery. Retail mer chants, while buying with the utmost caution and conservatism, are more disposed to fill out their stocks and assortments. Generally retail stocks are low, and there has been a pretty thorough liquida tion of merchandise bought at high prices. A uni versal comment is that values have reached more stable levels, and much greater confidence is felt in future prices by merchants and the public. Financial statements reaching credit depart ments of the great mercantile houses are in the whole o f a more satisfactory character than was the case during 1921. F ollow ing the inventory period there was extensive charging off of losses, and the interests which have accomplished this feat R are beginning the new year in relatively strong position. Stocks of raw and finished materials are more compact and more nearly represent current merchandising values than at any time since the reaction set in during the fall of 1920. In a number of important lines it is evident that readjustment has about run its full course for the time being. Elsewhere, however, the progress of liquidation has been less noteworthy, and in such commodities the movement into consumption is slowest. A s has been the case for a number of months, competition is unusually keen, and merchants and manufacturers are bending their efforts to reduce costs. Selling is on a close profit margin, and in numerous instances orders are taken on which small losses are involved in order to keep organiza tions intact or to realize cash. The comment is made that through the entire commercial struc ture more intensive effort is being put forth to sell goods, and merchants are inaugurating new methods and reforms and placing more intelligent and con structive thought in business than ever before. Conservatism seems to be the keynote of present practice, and speculation in commodities is virtually nil. In order to bring out the trend of opinion relative to business as reflected in reports to this bank, the follow ing verbatum comment of a leading manufacturer is reproduced: “ The outlook may be characterized as fair, and we feel that severe com petition is just ahead of us, and that during the next six months it is a matter of digging in and carrying on. The article with best value for the lowest price is the one that is going to sell, and with an output minus those qualities, it is going to be hard to get orders. Our customers report that the purchasing power of their people is lower now than it has been since 1914. No material change can be expected until new resources are created, which means new crops. Fruits and truck in sp rin g; cereals and cotton in autumn. W ith Nature assisting liberally, next fall should mark our definite return to normal, our own unstinted effort meantime, being most essen tial.” The volume of freight handled by railroads operating in the district fell off during the period under review, and there was a further increase in the car surplus. A ccording to officials of the roads, the decreased movement is affecting virtually all classes of commodities. There was a heavy slump in farm products, lumber, fuel and ore, but the major part of the loss was accounted for in mer chandise (L . C. L.) and miscellaneous combined. Coal shipments to the South and Southwest are vastly under normal for this season. The general decrease in traffic is reflected in the business of the St. Louis Terminal Railway Association, which includes in its membership 26 railroads operating through this gateway. In December this company interchanged 141,226 loads, which compares with 152,349 loads in November, 191,722 loads in October, 161,168 loads in September, 162,792 loads in August and 146,500 loads in July. A slight improvement was noted during the early part of January, the interchange of loads for the first nine days of this month being 38,345. The reduction in rates on farm products, which became effective January 9 is expected to stimulate the movement of grain. More seasonable weather during the past week was reflected in a slight picking up in coal forwardings. Decem ber sales of 230 automobiles scattered through the cities and small towns of the district were the smallest with but one exception of any month in 1921. Depression was particularly marked in the country, but the comment is made that December is normally a quiet month in the auto motive industry. The market continues to suffer from a surplus of used cars, and expectations of further price reductions caused many prospective purchasers to hold off until after the first of the year. A bout the same conditions obtain in the acces sory trade as in the car business proper, except that some improvement is noted in the demand for tires. Since January 1 there has been more activity, with both sales and inquiries showing a fair increase. There has been a satisfactory response to the recent reductions, and the industry generally is on a more stable basis than has been the case in many months. There has been little change in the dull condi tions which have prevailed for the past several months in the coal industry. The demand from all sources continues at a low ebb, with depression in manufacturing sharply reflected in consumption of steaming fuel. Production continues to decrease, and the trend of prices is lower. W arm weather served to emphasie the backwardness in purchasing of domestic sizes, which is much below normal for this season. Coke is in much the same position as coal. By-product manufacturers in the district have large stocks, and their current shipments are less, than production. The leading producer has reduced his price on foundry coke from $9.50 to $9 per ton. Reports relative to collections display consider able variety, but with the average efficiency som e what lower in December than the month imme diately preceding. The typical grain sections are slower in meeting obligations than heretofore, and more complaints are heard from the cotton states. In the tobacco areas, where sales of that crop are in progress, liquidation of indebtedness is generally satisfactory. Reports from the rice territory indicate less liquidation than expected. Answers to 379 questionnaires addressed to representative interests in various lines throughout the Eighth Federal Reserve District asking for data relative to collec tions show the follow ing results: 4.7 per cent excel lent ; 30.2 per cent g o o d ; 48.8 per cent fair, and 16.3 per cent poor. The per capita circulation of the United States on January 1, 1922, was $53.03 against $52.19 on December 1, 1921, and $59.12 on January 1, 1921. Commercial failures in the 12 Federal Reserve Districts during the months of December and N ovem ber, with comparative figures for December, 1920, as compiled by Dun’s, were as fo llo w s : District Boston, First.. Cleveland, Fourth.. Chicago, Seventh.. Kansas City, Tenth.. Dec. 1921 190 551 124 180 212 190 302 142 100 100 197 156 2,444 NUMBER Nov. Dec. 1921 1920 132 155 368 338 102 76 141 75 143 97 204 130 238 163 98 104 120 44 100 86 124 145 133 197 1,988 1,525 L IA B IL IT IE S Dec. Nov. 1921 1921 $ 2,302,167 $ 6,671,119 7,672,732 36,979,329 2,944,372 4,176,377 4,050,490 10,689,437 3,825,412 5,679.487 3,711,252 6,066,401 7,820,313 7,651,665 3,873,516 2,028,340 2,158,515 3,413,504 2,373,700 2,152,128 4,307,254 3,484,803 3,567,453 3,372,455 Dec. 1920 $ 6,682,883 21,538,235 4,317,296 2,210,441 1,872,700 3,125,655 5,868,677 3,030,670 1,150,260 4,748,658 2,141,462 2,184,602 $87,502,382 $58,871,539 $53,469,839 M AN U FA CTU R IN G AND W H O L E S A L E Boots and Shoes— A s compared with December, 1920, sales of the 11 reporting interests showed gains last month of from 2 to 116 per cent in numbers of pairs and from 10 to 54 per cent in dollar value. Increases in Decem ber over November, 1921, were from 6 t/2 per cent to 22 per cent in number of pairs and from 5 to 24 per cent in dollar value. The favor able showing in the comparison with December, 1920, is due in large measure to the fact that the final month o f 1920 was marked by a sharp depres sion in the industry. It is remarked that factories specializing in w om en’s fashionable and high priced shoes are doing a relatively much smaller business than those whose outputs consist chiefly of the cheaper grades. W hile there has been some im prove ment in future buying, the demand continues largely on a spot basis. There has been no change in prices of finished goods since the preceding issue of this report. Hides are stronger, while leather holds about steady. Factory operation in the district is at from 60 to 100 per cent of capacity. Collections are described as only fair. Clothing— There was a rather sharp dip in busi ness during December, according to the 23 report ing interests, due to warm weather and seasonal considerations. Orders for forward delivery con tinue well in excess of a year ago, but were slightly less than the preceding month. Jobbing stocks in the district continue liberal, but those in hands of retailers are light. Manufacturers report they are scrutinizing credits more closely than ever before, South, but virtually all for prompt shipment. Choice wheat continues scarce, and brings high premiums and a considerable volume of orders is being turned over the ordinary run. This, according to millers, down because of unsatisfactory financial statements. A s has been the case for the past several months, is the principal reason for the steadiness of the flour the demand centers largely in lower priced suits. market. Mill operation in the district during the Raw material prices are well stabilized, but manu period under review was at about 40 to 50 per cent facturers costs generally are from tw o to tw o and a of capacity. There is some export demand, chiefly half times higher than in 1914. Prices of finished for clears, but competition for all such business is goods are steady, save on a small volume of clothing unusually keen. which has been forced for sale. Drugs and Chemicals— The 7 interests report Iron and Steel Products— Aside from a slightly ing say their sales in December were from 14 to 22 more optimistic tone, there has been no change per cent under those of December, 1920, but showed worthy of note in this classification since the pre little variation from November, 1921. December ceding issue of this report. Mills and foundries, was a quiet month, but orders since January 1 have while not receiving heavy orders, report more showed a healthy revival, the first two weeks run inquiries and interest on the part of customers. The ning well over the same period last year, both in trend of prices continues downward, and there were volume and dollar value. There is a slightly better some specific reductions, notably in the case of pig demand for chemicals from manufacturers, whose iron, No. 2 Southern foundry, (1.75 to 2.25 per cent reserve stocks are generally at a low ebb. Prices average steady for the month, but the trend con silicon) having dropped to $16 base. Reports from tinues downward, except in proprietary medicines, seven stove manufacturers vary widely, showing which hold firm. Collections are reported fair to decreases of as much as 50 per cent to slight good. increases as compared with Decem ber a year ago. Furniture— December sales of the 11 reporting The comparisons with Decem ber and November, interests were from 14 to 45 per cent larger than in 1921, disclose decreases of from 2 to 53 per cent for December, 1920, and about steady with November, the former under the latter month. Farm implement 1921. There is a shade better demand for complete manufacturers and distributors s h o w heavy suites, but beds and springs are reported slow. decreases under December, 1920, but fair gains over Upholstered goods continue in active demand and November. Radiator plants are w orking full time, office furniture is m oving fairly well. Numerous and report a continued brisk demand for their pro buyers have been holding off on spring com m itt ducts. T ool and machine shops during the past ments until after the January sales at Chicago and month slightly increased the pace of their opera Grand Rapids, which sales largely determines styles tions, which is now at about 21 per cent o f capacity. and prices for the com ing four or five months. The Hardware— In Decem ber the sales of 12 report comment is made that more confidence is felt in ing interests were 13 to 24 per cent under the same prices, and retailers, are preparing to replenish month in 1920, and from 8 to 14 per cent less than their stocks. in November, 1921. Sales booked for forward ship Lumber— Because of the holidays, invoicing, ment range from 5 to 14 times as large as a year ago. mill repairs and the weather, the period between Retail stocks are reported light, and there is a dispo mid-December and mid-January is a very quiet one sition to fill out assortments. Business in the South in the lumber trade. The past thirty days have shows some improvement over the preceding thirty proved to be no exception to the rule. But because days, with the country purchasing on a larger scale. of the sustained strength of the market, consequent The trend of prices is downward, especially on on the comparative smallness of stocks and cut, standard goods, and declines are meeting with there has been more than the usual amount of excellent response on the part of consumers. Build inquiry, and also of small buying for immediate ing hardware continues to move in good volume, and needs. Buyers are evidently as anxious as they are there is a better demand for wire and wire products. uncertain about how best to conserve their interests, Shelf hardware and sporting goods, other than a in point of time for placing stock orders. Many limited number of seasonal articles, are quiet. country retailers are perplexed in regard to this Candy— Continued dullness is reported by the matter because they will entertain hopes of freight 11 corresponding interests. Decem ber sales were rate reductions in the limited time within which largely under the corresponding month in 1920, but they could be advantaged in the receipt of their showed the usual seasonal gains over November. spring stock. So while “ market feelers” are fairly Certain goods have declined in sympathy with the numerous, stock buying of yellow pine and other sugar market, but generally prices are steady with building lumbers has hardly started yet in this dis thirty days ago. There is little demand for expen trict, even among the line yard companies, who sive specialties, the sales being confined largely to have not been able to obtain such price concessions the cheaper grades. to early volume buying as they are usually favored Flour— Production of eleven leading mills in with. Bridge timbers, crossties and car material the district in Decem ber showed a further decrease, reflect about the same conditions as house lumber. totaling 248,600 barrels, against 261,400 barrels in The needs of the railroads are great as to all these N ovem ber and 359,748 barrels in October. In point items. Prices of softw oods are steady to higher of new business, Decem ber was disappointing, but as contrasted with thirty days ago, while the princi it produced much better shipping instructions on pal grades of hardwoods, notably red gum and white old orders. Since January 1 there has been a much oak, are lower. better inquiry for all grades, especially from the Industrial Power Consumption— December reports of utility companies in the leading cities of the dis trict show decreases in electrical power consumption under the N ovember totals. However, for the first time since this investigation was inaugurated, the December total exceeded that of the corresponding month in 1920. Memphis and Little R ock again showed marked increases over the corresponding month of the year preceding, though the form er dropped well behind its N ovember showing. This lag may be partially explained by the decline in activities in cotton industries. The comparative figures follow : Representative Customers Dec., 1921 6,537,452 k. w. h. St. Louis.............. 68 816,400 " Memphis .............. 31 555,417 “ Little Rock.......... 11 1,891,994 “ Louisville ...........- 81 Total.............. 191 9,801,263 Nov., 1921 7,347,727 k. w. h. 1,046,290 “ 597,458 “ 1,950,617 “ 10,942,092 “ Dec., 1921 Comp, to Nov., 1921 - 11.0 % -21.9% - 7.0% - 3.0% 1.0 Dec., 1920 6,755,120 k. w. h. 631,320 “ 478,581 “ 1,935,712 " 9,800,733 Dec., 1921 Comp, to Dec., 1920 - 3.2% + 2 9 .3 % + 1 6 .3 % - 2.8% + .05% R E T A IL Reports from retailers scattered throughout the district indicate that on the whole holiday trade was up to expectations, though results in the country as a rule were less satisfactory than in the larger centers of population. A lm ost universally, however, sales fell behind those of 1920. Jewelers enjoyed an active season, with the number o f transactions large, but they report the demand for the larger and more costly items, usually bought at Christmas time, was lacking. W arm weather restricted the movement of overcoats and heavy suits, but this was offset in a measure by liberal sales of novel ty furnishings o f the useful sort. A ccording to haberdashers, the demand for luxuries and fad goods was almost entirely lacking, and little effort was made to press the sale o f such articles. Department stores report unusually heavy sales on the monthly payment basis. One establishment in particular accomplished a heavy turnover in its phonograph department. Despite a disposition to wait the removal of war taxes on January 1, holiday sales of sporting goods were heavy. During the first weeks of January elimination of the taxes has stim ulated purchasing, and enlivened a season which is normally dull. There has been some improvement in the business of stationers and printers due to the seasonal demand for supplies incident to the new year. Hardware is virtually as described in the preceding issue of this report, with little variation in either direction. The sale of soft drinks and retail distribution of candies, toilet articles, drugs, etc., upon which there were war taxes, have been con siderably augmented since the removal of these charges. There is a tendency to extend credit pri vileges in order to promote increased sales. Reports relative to collections are irregular, but generally retailers are getting in their money promptly on current business. Department Stores— T h e follow ing charts show comparative net sales and stocks on hand, as well as the turnover of representative department stores in leading cities of this district for past six m on th s: Percentage of decrease in net sales for each of last 6 months of 1921 under corres ponding month of 1920. Percentage of decrease in stocks on hand at end of each of last 6 months of 1921 under corresponding month of 1920. Percentage of average stocks on hand at end each month since July 1, 1921 to average monthly sales during same period. The condition of retail trade during December, 1921,in the leading cities of this district is reflected in the follow ing statement, compiled from reports of 20 representative department stores: (Percentages) St. Net Sales: Louis Dec. 1921, compared with Dec. 1920................- 8.2 Period July 1, to Dec. 31, 1921, compared with same period in 1920...-........................ -10.9 Stocks at end of December, 1921: Compared with same month in 1920................*- 2.6 Compared with stock at end of Nov. 1921..... -15.9 Average stocks on hand at end each month since July 1, 1921 to average monthly sales during same period............................................. 360.6 Outstanding orders for December, 1921, com pared to previous year’s purchases.............. 3.9 Louisville - 8.8 Little EvansMemphis Rock ville - 8.3 -12.7 -23.1 Quincy - 8.1 8th District - 8.8 -13.5 -14.7 -10.8 -27.5 -10.8 -11.9 -11.9 -25. - 5.2 -15.3 + 1.5 -15.5 + 8.1 -15.3 - 6.6 -17.6 - 3.9 -17.0 580.4 355.3 441.3 732.7 432.4 397.7 3.6 6. 6.8 5.8 6.9 4.5 AGRICULTURE Throughout the Eighth Federal Reserve D is trict the condition of the winter wheat crop is good. T o date the open winter has resulted in a minimum of damage from freezing, and in nearly all localities there has been ample moisture. The plant has good growth and the color and general appearance of the top growth indicates an exceptionally healthy condi tion. Reports relative to acreage vary considerably, but on the whole a slight reduction under last sea son is indicated. W eather conditions have been ideal for husking corn, and these operations have been about completed, save in parts of Southern Illinois and Missouri. Due to low prices and high freight rates, marketing of the crop continues slow. There is some talk of reduced planting of corn this year, but it is too early to form any idea of what the acreage will be. Thanks to mild weather and abun dant feed, the condition and health of all classes of live stock is excellent. Some minor losses of cattle and horses from m oldy corn and cornstalk disease are reported. Fall plow ing and general preparation for spring crops has made good progress on the whole, being assisted by abundant labor and favor able weather. In Missouri fall plow ing is about three-fourths completed. Cotton has been m oving more slowly to market, due to the decline in prices. In Arkansas it is estimated that there remain about 350,000 bales unsold. There has been a better demand for rice, and that crop is m oving to market in fair volume. The rice crop in Arkansas is esti mated at 7,491,358 bushels. The past thirty days have been marked by further declines in market values of the principal cereals. In the case of corn and wheat, the losses were due more to speculative influences than to changes in fundamental condi tions. Part of the decline in these tw o cereals was regained, but the market continues in an unsatisfac tory position from the viewpoint of the producer. The U. S. Department of Agriculture, in its report dated December 29, gives the condition of winter wheat in States of this district as fo llo w s : Indiana Tennessee Area Sown (Acres) Autumn 1921 Autumn Preliminary 1920 Revised 77,000 107,000 2,775,000 2,694,000 2,053,000 2,074,000 670,000 657,000 6,000 8,000 3,058,000 3,219,000 505,000 459,000 Autumn, 1921 compared with 1920 % 72 103 99 102 80 95 110 Condition Dec. 1 10 year 1921 1920 aver age % % % 77 89 90 93 86 89 92 82 88 95 84 88 90 85 88 87 90 89 93 80 88 Price Dec. 1 1921 1920 cents 100 100 106 115 130 99 120 cents 190 161 167 191 213 160 195 Range of prices on typical products in the St. Louis grain market between December 15 and January 14, with closing quotations on each of these dates: Close Dec. 15 High Low Close Jan. 14 May wheat...............................Per bu. $1.10$4 $1.16 $1.06 1.09^ July wheat................................. 44 l.00y2 1.05 .9 6 ^ .98% May corn................................... “ .5 1 ^ .5 4 ^ .5 0 ^ .51*6 July corn................................... 44 .52^ .55% .5 2 ^ $3% May oats..................................... “ .38^ .40^ .39 .39 No. 2 red winter wheat........ 44 $1.20 @ 1.21 1.24 1.15 $1.21 @ 1.24 No. 2 hard wheat.................. 44 1.10 1.19J4 1.09 1.10 No. 2 corn................................. 44 .4 7 ^ -50 A6y2 @ A6V\ No. 2 white corn.................... 44 A iy 2 .50 .46 .47 No. 2 white oats.................... 44 .3 4 ^ .40 .35 .37 @ .38 Flour: soft patent................Per bbl. 5.75 @ 6.75 6.75 5.50 5.75 @ 6.00 Flour: spring patent............ 44 6.25 @ 6.70 5.80 7.35 5.80 @ 6.75 N O T E : December wheat closed at $ l .l l j ^ ; December corn at 46j^c and December oats at 38c. L IV E STOCK M O V E M E N T A s reported by the St. Louis National Stock Yards, receipts and shipments of live stock in December, 1921 and 1920, and November, 1921, were as follow s: Dec. 1921 Cattle and Calves.......................... 87,832 Hogs ................................................. 337,226 Sheep ................................................. 44,095 Horses and Mules.......................... 4,981 Receipts Nov. 1921 125,189 361,902 38,419 6,333 Dec. 1920 81,263 357,207 47,252 3,096 Dec. 1921 58,234 240,486 22,932 5,231 Shipments Nov. 1921 80,510 227,693 13,167 7,429 Dec. 1920 39,336 202,896 10,556 3,546 COM M ODITY M O V E M E N T Receipts and shipments of important commodities at St. Louis during December, 1921 and 1920, and November, 1921, as reported by the Merchants’ Exchange, were as follow s: Flour, barrels...................... Wheat, bushels.................... Corn, bushels....................... Oats, bushels........................ Lead, pigs............................ Zinc and Spelter, slabs Lumber, cars........................ Meats, pounds...................... Fresh Beef, pounds............ Lard, pounds........................ Hides, pounds...................... Dec. 1921 382,020 1,771,625 3,586,822 1,590,000 280,110 250,200 12,809 14,933,200 20,000 3,063,700 6,493,800 Receipts___________ Nov. 1921 Dec. 1920 439,440 284,320 1,583,005 3,720,918 1,816,644 1,483,335 1,044,000 1,868,000 240,520 184,150 239,980 420,750 15,436 11,271 5,054,300 17,503,900 324,500 1,354,400 1,613,000 4,225,100 3,276,400 4,641,100 ___________ Shipments Dec. 1921 Nov. 1921 514,470 381,260 1,392,315 1,544,610 2,304,930 1,802,370 1,039,850 879,790 86,350 76,660 432,410 310,780 11,762 9,529 23,676,500 23,086,000 20,620,400 19,613,800 5,566,100 6,143,300 7,421,900 7,621,700 Dec. 1920 325,410 2,266,130 515,530 1,328,510 61,250 435,350 7,639 23,730,100 23,994,600 6,463,700 5,508,600 LABOR SITU ATIO N The labor situation in this district is reflected in the follow ing table, compiled from reports received from 210 leading employers in 21 of the largest cities of the district: Men Dec. 31, 1921...................................143,671 Nov. 30, 1921...................................153,310 Dec. 31, 1920............................ ......157,767 Women 19,920 17,487 14,711 Wage Earners Total Normal 163,591 193,782 170,797 193,782 172,478 193,782 % of Normal -15.6 -11.8 -10.9 Pay Roll $11,605,638.16 12,801,482.38 14,631,090.48 From the above tabulation it will be noted that the number of employees of the reporting interests decreased 8,887 or 5.1% (men decreased 8.3% while women increased 35.4% ) between December 31, 1920 and Decem ber 31, 1921. On December 31, 1920 the number was 10.9% under normal and on N ovem ber 30, 1920 the total was 11.8% under normal. Wages, figured on a semi-monthly basis, decreased $3,025,452.32 or 20.7% between Decem ber 31, 1920 and December 31, 1921. On July 1, 1921, the total wage earners was 27.4% under normal, on August 1, 1921, 23.1% under nor mal, on September 1, 1921, 16.4% under normal, on October 1, 1921, 17.7% under normal, and on N ovem ber 1, 1921, 17.1% under normal. BU ILD IN G Building conditions in the district have undergone no change worthy of note during the past thirty days. This is normally a dull period of the year, and the dullness was accentuated in St. Louis and other centers by efforts made to accomplish a reduction in the wage scale of the building crafts. Marked activity is reported in the erection of inexpensive homes in suburban communities and to a lesser degree in small towns. Builders, architects and contractors report a fair volume of plans and specifications in their vaults awaiting the spring building season, and further reductions in building costs. Several minor reductions in building material prices were recorded, including cement and certain grades of yellow pine lumber. Comparative figures for December in leading cities of the district follow : ___________New Construction Permits Cost December 1921 1920 1921 St. Louis...............................300 186 $ 718,930 Louisville ............................ 103 36 542,600 Memphis ...............................241 136 1,229,160 Little Rock.......................... 46 25 430,020 Evansville ............................. 22 27 96,335 December totals.................. 712 November totals................881 October totals.................. 1,179 410 543 693 $3,017,045 2,217,285 3,355,088 1920 $ 285,040 174,350 108,522 6,020 49,540 $ 623,472 987,833 1,400,955 _____________ Repairs, etc.________________ Permits Cost 1921 1920 1921 1920 292 303 $260,790 $239,445 62 63 26,600 27,600 38 24 15,960 13,865 94 90 24,567 60,629 32 9 15,442 4,800 518 570 790 489 583 748 $343,359 353,422 333,396 $346,339 353,426 417,348 POSTAL RECEIPTS Postal receipts in the leading cities of the district for the quarter ended December 31, 1921, as com pared with the preceding quarter and the corresponding period a year ago, are shown in the follow ing statem ent: Quarter ended Quarter ended Quarter ended December 31, September 30, December 31, 1921 . 1921 1920 St. Louis...................................................................................... $2,634,058.14 $2,062,550.71 $2,366,665.31 Memphis .................................................................................... 398,109.94 310,538.07 390,855.83 Little Rock............................................................................. 175,264.13 161,935.58 185,503.81 Evansville ....................................................... .......................... 118,331.55 112,333.02 110 787.03 Total..................................................................... .................$3,325,763.76 $2,647,357.38 $3.053,811.98 F IN A N C IA L T he general tendencies noted in the preceding issue of this report have continued in varying degree during the past thirty days. Liquidation in the large ' , , fl i t , - i i *?i centers has been on a liberal scale, parfccularly with the larger wholesale interests, which have consider- Reserve note liabilities increased standing at 71.5 on January 14. , 5.5 per cent, t Acceptances— The market continues quiet, with features of interest or importance lacking. The dedine in rates has served to curtail the demand for bills, banks and investors preferring to place their ably reduced their banking obligations. In turn the funds in Government securities or other investcity banks have cut down their discounts with the ments yielding more favorable returns. Acceptances Federal Reserve Bank. On the other hand the depurchased in the open market by this bank in D e mand for money in the country and smaller cities is cember amounted to $1,221,732, a decrease of just as active as heretofore, and in some localities $2,911,614 under the preceding month. Rates range even stronger. M any small country banks which from 3 % to A 1 / ^ per cent. had not up to this time availed themselves of the Commercial Paper— There has been little services of this institution, are now rediscounting. change from the dull conditions which have obtained Reports from these banks are to the effect that in the commercial paper market during the past many of their customers who have not figured as several months. Sales during December, according borrowers for many months are now seeking to brokers, were among the lightest for any similar accommodations. A considerable part of the borperiod in recent years. Since January 1 things have rowing in the country is for the purchase of live picked up to some extent, and the general tone has stock and feed, also to defray expenses of preparabeen improved by the excellence of financial statetions for planting spring crops. Cotton has been ments arriving. Large city banks are the chief m oving to market more slowly, which is reflected in buyers, country institutions being out of the market curtailment of liquidation in the typical cotton areas. because of heavy local demand for their funds. There has been fair liquidation in the tobacco secOfferings of paper continue generally light. Rates tions, where sales are now in progress. There has in the extremes range from 4^4 to S y2 per cent, but been some demand for rice, but prices are not satismost transactions are at 5 to 5 % per cent, factory, and liquidation in the rice territory is not Bonds— The market for bonds continues active, up to expectations, though considerably better than with the supply of desirable issues inadequate to at this time a year ago. Banks in the large cities are meet the demand. Brokers and financial institutions well equipped with loanable funds, and the trend of with bond departments report that their portfolios rates continues easier. Between December 15, 1921, have been pretty well emptied of such securities and January 14, 1922, the bills discounted by the as the demand centers in. T he trend of values is Federal Reserve Bank of St. Louis for member upward, and during the period under review Victory banks decreased $9,827,776; net deposits gained Notes and Liberty Bonds touched new high levels. $151,000 and Federal Reserve notes in circulation High grade corporation issues are moving well, and decreased $7,367,000. Between the same dates the several recent issues placed on the market were total reserve carried against deposits and Federal readily absorbed. Interest Rates— Between December 16 and January 14 the high, low and customary interest rates pre vailing in St. Louis, Louisville, Memphis and Little Rock, as reported by banks in those cities were as fo llo w s: St. Louis H L C Louisville H L C Memphis H L C Little Rock H L C Customers Prime Commercial Paper: 30 to 90 days.......................................................................7 5 /2 6 7 6 6 8 6 7 8 7 7 4 to 6 months.....................................................................7 5 ^ 6 7 6 6 8 6 7 8 7 8 Prime Commercial Paper purchased in open market: 30 to 90 days.......................................................................5 ^ 5 5% 5 ^ S'A Sy4 .................................................. 4 to 6 months.................................................................... 5y 5 5^ 5y2 5% 5% .................................................. Loans to other banks............................................................... 6 /l 2 Sy2 6 6 6 6 8 6 7 8 6 7 Bankers' Acceptances of 60 to 90 days: Endorsed ...........................................................................4 ^ 3% 3 ^ ............................................................................... Unendorsed .................................................................................................................................................................................. Loans secured by prime stock exchange collateral or other current collateral: Demand .............................................................................7 5y 6 6 6 6 ..................... 8 7 8 3 months.............................................................................. 7 S y 6 6 6 6 8 7 7 8 7 8 3 to 6 months.....................................................................7 5^6 6 6 6 8 7 7 8 7 8 Cattle Loans.............................................................................. 8 7 6 6 6 6 ..................... 8 7 8 Commodity paper purchased by warehouse receipts, etc..7 5$4 6^2 6 6 6 8 6 7 8 7 8 Loans secured by Liberty Bonds and Certificates.............7 6 6 6 5J4 6 7 6 7 8 7 7 Savings Deposits— The changes in the number of savings accounts and the amount of savings deposits, exclusive of postal savings deposits, since a month ago and a year ago, as reported by the largest member banks in the leading cities of this district, are shown in the follow ing table: Number Banks Reporting St. Louis.... Louisville ... Memphis ... Little Rock. Evansville . Total.... .. 12 7 7 5 ■■ .. ' 35 January 4, 1922 Number Amount Savings Savings Accounts Deposits 227,795 $61,773,000 124,390 19.927.000 57,169 13.568.000 24,355 5.655.000 20,716 8.232.000 454,425 $109,165,000 January 1, 1921 Number Amount Savings Savings Accounts Deposits 212,221 $59,312,000 105,458 16,999,000 47,382 12,332,000 18,387 5,167,000 19,515 7,868,000 402,973 $101,678,000 December 1, 1921 Amount Number Savings Savings Deposits Accounts 226,352 $61,067,000 18.313.000 122,160 55,328 13.599.000 24,083 5.384.000 8.186.000 20,535 $106,549,000 448,458 Condition of Banks- -The condition of banks in this district and changes since a month ago and last vear, are reflected in the follow ing comparative statement, showing the principal resources and liabilities of member batiks in St. Louis, Louisville, Memphis, Little Rock and E vansville: Jan. 11,1922 Number of banks reporting....................................................... 37 Loans and Discounts (including bills rediscounted with Federal Reserve Bank): Secured by U. S. Govt, obligations.................................... $ 17,004,000 Secured by stocks and bonds other than U. S. Bonds.. 123,573,000 All other loans and discounts................................................ 300,157,000 Total loans and discounts................................................ ..$440,734,000 Investments: U. S. Government Bonds....................................................... 26,898,000 U. S. Victory Notes................................................................. 2,656,000 U. S. Treasury Notes...................................... ...................... 54&000 U. S. Certificates of Indebtedness...................................... 4,931,000 Other bonds, stocks and securities...................................... 69,270,000 Total Investments....................................................................... $104,30^)00 Reserve balance with Federal Reserve Bank...................... 43,354$)00 Cash in vault.................................................................................. 7^30,000 Net demand deposits on which reserve is computed.......... 312*203,000 Time deposits.................................................................................. 154*056,000 Government deposits................................................................... 6,048,000 Dec. 14,1921 37 Jan. 14, 1921 37 $ 19,642,000 123,783,000 297,096,000 $440,521,000 $ 26,911,000 123,590,000 362,366,000 $512,867,000 26,611,000 1,315,000 140,000 2,887,000 70,246,000 $101,199,000 41,160,000 8,255,000 302,701,000 149,262,000 3,974,000 29,224,000 2,352,000 1,974,000 65,221,000 $ 98,771,000 43,014,000 9,903,000 332,698,000 147,760,000 1,508,000 Debits to Individual A ccounts — The following table gives the total debits charged by banks to check ing accounts, savings accounts and trust accounts of individuals, firms, corporations and U . S. Government and also certificates of deposit paid, in the leading cities of this district: .Jan. 18, 1922 $501,535,000 90,802,000 106,365,000 41,677,000 East St. Louis & Nat. Stock Yards> 30,599,000 23,621,000 11,190,000 7,900,000 Dec. 21,1921 $485,247,000 99,487,000 106,117,000 41,148,000 32,890,000 19,521,000 11,432,000 9,014,000 St. Jan. 1922 comp, to Dec. 1921 Jan. 19, 1921 $574,548,000 107,375,000 11,308,000 45,193,000 + 3.4% - 8.7% + -2% + 1.3% - 6.9% + 2 1 .0 % - 2.1% -12.4% 21,766,000 Jan. 1922 comp, to Jan. 1921 -12.7% -15.4% - 4.4% - 7.7% ......... + 8.5% FED ER AL RESERVE B A N K OPERATIONS In Decem ber the Federal Reserve Bank of St. Louis discounted $120,034,756 of paper for 316 member banks, wrhich is a decrease of $27,022,687 under the amount discounted in November, and a decrease of 17 in the number of banks accommodated. Acceptances purchased in Decem ber amounted to $1,221,732, a decrease of $2,911,614 under the preceding month. There was no change in the discount rates of this bank. Changes in the assets and liabilities of the Federal Reserve Bank of St. Louis since a month ago and a year ago are shown in the follow ing comparative statement (in thousands of dollars) : Jan. 18, 1922 RESOURCES: Gold Reserves................. $103,351 Legal tender notes, silver, etc....................... 13,251 Total Cash Reserves..$116,602 Discounts secured by U. S. Govt, obligations........ 17,820 Discounts otherwise secured or unsecured... 32,367 Bills bought in open market................. 415 U. S. Govt, securities... . 7,866 Total earning assets.....$ 58,468 Uncollected Items........ 32,838 Other Resources............. . 1,308 Total Resources........ $209,216 Dec. 14, 1921 Jan. 16, 1921 $ 98,608 $ 88,776 12,917 $111,525 6,312 $ 95,088 24,877 37,256 Jan. 18, 1922 L IA B IL IT IE S : Capital paid in................. $ 4,606 Surplus ............................. 9,388 Dec. 14, 1921 Jan. 16, 1921 $ $ 4,591 9,114 4,367 8,346 Reserve for U. S. Govt. franchise tax............... 76 1,509 Deposits ........................... 70,477 66,397 67,482 97,708 129,513 3,642 9,098 34,376 1,423 $218,760 68.0% 33,749 998 $253,553 49.2% F. R. Notes in circula 36,711 64,397 tion ............................... 88,645 F. R. Bank Notes in 180 585 circulation ................... 3,983 17,121 7,969 Deferred availability $ 69,737 $119,359 items ............................. . 31,466 35,570 37,558 1,928 1,548 Other liabilities............... 575 Total liabilities........... $209,216 $218,760 $253,553 Combined reserve ratio. . 73.3% (Compiled January 20, 1922) -------
@FedFRASER