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FEDERAL RESERVE BANK OF ST. LOUIS
MONTHLY REVIEW
OF BUSINESS CONDITIONS IN
EIGHTH DISTRICT
Released for Publication On and After the Afternoon of January 31, 1928
WILLIAM McC. MARTIN
Chairman o f the Board and Federal Reserve Agent
E P O R T S relative to business in this district
during the past thirty days reflect irregu
larity, and for the most part reduced activ
ity, both as contrasted with the similar period im
mediately preceding and a year ago. The tendency
to slow down is most marked in wholesale and man
ufacturing, sales in a m ajority of lines investigated
showing declines. A t numerous industrial plants
resumption of operations follow ing the holiday and
inventory lull have been at a slower rate than during
the tw o preceding seasons. There is a general dis
position on the part of consumers of finished and
semi-finished goods to await developments before
making commitments, and unfilled orders of many
important interests show rather sharp reductions.
This is true particularly in the iron and steel indus
try and in the case of manufacturers of building
material. Manufacturers in turn are postponing
filling their raw material requirements, and are
making up little stock for which they have not
orders actually booked or in immediate prospect.
Due to unfavorable weather, holiday trade got
a late start, and in most wholesale and jobbing lines
the volum e of sales of goods in this category was
below expectations. Retail holiday business, how
ever, picked up substantially in both city and coun
try during the closing weeks of Decem ber and made
a good show ing on the whole. December sales of
department stores in the principal cities of the dis
trict were 2.8 per cent larger than for the corres
ponding month in 1926. Gains were also recorded
over December, 1926, totals in sales of mail order
houses and five and ten cent stores. Debits to indi
vidual accounts in the reporting cities in Decem ber
were 7.9 per cent larger than for the same month
in 1926. There was a sharp decline in the dollar
value o f building permits issued in the five largest
cities of the district in December, but for the dis
trict as a whole, contracts let in that month totaled
larger than in either Novem ber, 1927, or December,
1926. Retail distribution of automobiles was the
smallest for any single month since 1924. Savings
R
accounts on January 1 were the highest on record
in this district.
A ccordin g to reports of the Employment Ser
vice, U. S. Department of Labor, increases of greater
or lesser magnitude in employment were general in
this district during the past thirty days. In the
south curtailment of activities at lumber and textile
mills created a surplus of workers. Seasonal suspen
sion of municipal construction in St. Louis, Louis
ville and other cities released a large number of
com m on laborers. A burdensome surplus of miners
in the bituminous coal fields of Kentucky and Illi
nois was reported, and considerable temporary un
employment in the lead and zinc mining camps
was occasioned by the closing mines for the holidays
and usual annual repairs. Some increase in forces
of the railroads, both in repair shops and operating
departments, has taken place, and there were gains
in employment in the tobacco warehouses and manu
facturing plants.
Aside from a flurry of activity and slight stif
fening in prices of domestic sizes, caused by the sub
zero temperatures during the first week of January,
the coal situation underwent no change worthy of
note as contrasted with the preceding thirty days.
Supplies continue in excess of demand, and in the
Illinois and Indiana bituminous fields operations are
still at a low rate. Demand for steaming coal suf
fered the usual recession during the holiday period,
but some improvement has developed in this section
of the trade since the first week of this month. R e
serve stocks of many important industrial interests
and public utilities companies are still above the
average at this period during the past several years,
and there is a general disposition to work off sur
pluses rather than make new commitments. The
open winter to date has permitted of prompt deliv
eries, and there has been a minimum of delay in
the movement from mines. Purchasing by the rail
roads, while somewhat better than during the pre
ceding two months, was below expectations. B y
product coke manufacturers report a fair demand for
metallurgical grades but quietness in domestic sizes,
with reserve stocks of the latter larger than at the
corresponding period last year. Due to the strike of
miners in the Central Competitive field, lasting from
April 1 to O ctober 1, production of bituminous coal
for the country as a whole in 1927 fell below the
tw o preceding years, the 519,804,000 ton output
comparing with 573,367,000 tons in 1926 and
520,053,000 tons in 1925.
A further recession in freight traffic of rail
roads operating in the district was recorded in D e
cember, and due to rather steady losses during the
last quarter, total for the year fell below that of
1926, though exceeding that of any year prior to
1926. For the country as a whole loadings of reven
ue freight during 1927 totaled 51,714,302 cars,
against 53,098,819 cars in 1926, and 51,224,152 cars
in 1925. The St. Louis Terminal Railway A ssocia
tion, which handles interchanges for 28 connecting
lines, interchanged 199,342 loads in December,
against 196,502 loads in November, and 202,625
loads in December, 1926. D uring the first 9 days
of January the interchange amounted to 58,120
loads, which compares with 59,245 loads during the
corresponding period in December, and 54,376 loads
during the first 9 days of January, 1927. Passenger
traffic of the reporting roads decreased 9 per cent
in December as contrasted with the same month in
1926. Estimated tonnage of the Federal Barge Line
between St. Louis and New Orleans for December
was 114,000 tons against 114,541 tons in November
and 80,910 tons in December, 1926. The total ton
nage handled in 1927, 1,237,307 tons, was the largest
on record, and compares with 1,044,658 tons in 1926
and 911,484 tons in 1925.
Mainly satisfactory results were reflected in re
ports relative to collections during the past thirty
days. Decem ber settlements with wholesalers in
the large centers were above those of the same
month in 1926, and payments during the first half
of January have maintained the high average of the
preceding month. Generally through the South col
lections of both retail and wholesale merchants are
reported good, with patricularly high efficiency
noted in the tobacco districts and certain sections
of the cotton areas. Retailers in the principal cities
reported Decem ber payments below expectations,
but report marked betterment since the first of this
month. Answers to questionnaires addressed to
representative interests in the several lines scat
tered through the district showed the follow ing
results:
Excellent
December, 1927........... 4.0%
November, 1927........... 2.7
December, 1926..... ......1.4
G ood
36.0%
36.4
30.1
Fair
54.7%
54.1
57.5
P oor
5.3%
6.8
11.0
Commercial failures in the Eighth Federal Re
serve District during December, according to D un’s,
numbered 84, involving liabilities o f $2,923,187,
against 93 defaults in November with indebtedness
of $3,476,583, and 86 failures for $1,331,361 in D e
cember, 1926.
The per capita circulation in the United States
on January 1 was $42.50, against $41.22 on Decem
ber 1, and $43.03 on January 1, 1926.
M A N U F A C T U R IN G A N D W H O L E S A L E
Autom obiles — Combined passenger car and
truck production in the United States in December
totaled 133,178, which was smaller than the average
monthly production in any year since 1921, and
compares with 133,202 in November, and 137,363
in December, 1926.
Distribution of automobiles in this district dur
ing December was the smallest for any month in
1927, and below that of any month in recent years.
W hile December is normally a period of light sales
of passenger cars, the decrease last month was
greater than could be accounted for by seasonal
considerations. Dealers in both the cities and coun
try report that virtually no stimulation was experi
enced due to Christmas, and there was a general
disposition on the part of customers to await new
models before filling their requirements. The
numerous actual and prospective price reductions
were mentioned as another factor tending to hold
down sales. As has been the case during the past
several months, heaviest losses in the number of
cars sold was in the cheap priced category. W hile
decreases under the preceding month and a year
earlier were reported by all but a few dealers in the
more expensive makes, they were proportionally
much smaller than in the cheaper cars. In spite of
the generally poor results in December, however,
sentiment was optimistic regarding business this
year. The present lull was ascribed to peculiar con
ditions in the passenger car market, and not to any
fundamental conditions calculated to adversely
affect the industry. December sales of new passen
ger cars by 320 dealers scattered through the dis
trict were 54.1 per cent less than for the preceding
month, and 50.8 per cent below those in December,
1926. Stocks of new cars on January 1 were 4.1 per
cent and 8.3 per cent smaller, respectively, than a
month and a year earlier.
The used car market was reported satisfact
ory. Sales in December were smaller than dur
ing the preceding month and the same month in
1926, but stocks were smaller, and the position of
dealers with reference to ability to take in used cars
in trade on new vehicles sold is better than at any
time in recent years. O f the new cars sold by the
reporting dealers in December, 47.4 per cent were
on the deferred payment plan, against 48.3 per cent
in N ovem ber and 62.5 per cent in December, 1926.
B oots and Shoes — Decem ber sales of the 5
reporting interests were 33.0 per cent larger than
during the same month in 1926, and 45.9 per cent
below the November, 1927, total. Stocks on Janu
ary 1 were 19.9 per cent larger than a month earlier,
and 5.8 per cent less than those on January 1, 1927.
The heavy decrease in the month-to-m onth sales
comparison is accounted for chiefly by seasonal in
fluences. Orders received from salesmen, who
started on the road early this month, are reported
generally satisfactory. Prices of finished goods con
tinue their upward trend, due to the continued ad
vance in raw materials. A s compared with a year
ago, finished goods range from 8 to 10 per cent
higher. Hides and leather have advanced approxi
mately 75 per cent and 50 per cent, respectively,
from their low points in 1927.
C loth in g— The m ovement of heavyweight ap
parel, both men’s and w om en’s, has been adversely
affected by the unseasonably warm weather which
has prevailed with little interruption since the early
winter. Manufacturers and jobbers report reorder
ing of winter goods considerably below the average
of the past several years. Since the first week in
January special sales at reduced prices have served
to accelerate purchasing of heavyweight goods at
retail, but for the most part response to these efforts
have been disappointing. Decem ber sales o f the re
porting clothiers were 0.5 per cent larger than for
the same month in 1926, and 61.9 per cent below
the November, 1927, total.
Drugs and Chemicals — A further decrease in
activity in this classification took place. December
sales of the 9 reporting interests fell 3.3 per cent
under those of the same month in 1926, and 7.6 per
cent below the November, 1927, total. Demand for
seasonal goods is generally reported below expecta
tions, and purchasing of heavy chemicals and drugs
by the manufacturing trade was slow. Prices devel
oped no change w orthy of note as contrasted with
the preceding thirty days. Generally through the
district the m ovement of holiday merchandise was
disappointing.
D ry G oods — D ecem ber sales of the 8 reporting
firms were 25.9 per cent larger than in the same
month in 1926, but 23.3 per cent below the N ovem
ber, 1927, total. Stocks on January 1 were 27.6 per
cent and 16.9 per cent larger than a month and a
year earlier, respectively. The gain in sales in the
yearly comparison is made up largely of advance
orders, tw o leading stores reporting future business
close to 50 per cent larger than a year ago. Early
January business is reported satisfactory, orders
showing a small gain over the corresponding period
last year.
Electrical Supplies — Due principally to re
duced buying by the automotive industry and public
utilities companies, sales of the 5 reporting interests
in December showed a decrease of 12.0 per cent
under the same month in 1927. Belated buying of
holiday goods, however, was responsible for a gain
of 4.8 per cent in December sales over those of
November. Stocks on January 1 were 19.5 per cent
larger than a year earlier and 0.7 per cent
greater than those on Decem ber 1, 1927. Prices
showed no change w orthy of note as compared with
the preceding month.
Flour — Production at the 12 leading mills of
the district in Decem ber totaled 345,793 barrels
against 342,510 barrels in November and 364,812
barrels in December, 1926. Stocks of flour in St.
Louis on January 1 were 9.1 per cent larger than
on December 1, 1927 and 9.4 per cent greater than
on January 1, 1927. Inventory taking and the usual
holiday lull resulted in dullness in the flour trade
during the period under review. New business was
in small volume, and shipping directions generally
poor. Aside from the routine business with LatinAmerican countries, export trade was quiet. Prices
averaged slightly higher, in sympathy with the
upturn in cash wheat values. Mill operation was
at 54 to 58 per cent of capacity.
Furniture — Decem ber sales of the 14 report
ing interests were 17.9 per cent smaller than for the
same month in 1926, and 35.4 per cent below the
November, 1927, total. Stocks on January 1 were
5.6 per cent larger than a month earlier and 12.6
per cent smaller than those on January 1, 1927.
Movement of specialties and holiday goods was be
low expectations, and a slowing down in virtually
all classes of furniture was noted. Hand-to-mouth
buying continues the rule and large stock orders
are scarce. Office furniture and equipment contin
ues quiet.
Groceries — For the third consecutive month,
business in this classification declined during the
period under review. Decem ber sales of 11 report
ing interests were 1.1 per cent smaller than for the
same month in 1926, and 4.5 per cent below those
in November, 1927. Purchasing of seasonal and
holiday goods was in lesser volume than during the
corresponding period in 1926, but some improvement
in staples, particularly in the rural sections, was
noted. Stocks on January 1 were 9.9 per cent larger
than a year earlier, and 1.4 per cent below those on
Decem ber 1, 1927.
Hardware — Reports from leading interests in
this classification reflect somewhat irregular condi
tions. Sales in the country are relatively better than
in the chief centers of population. Mild weather
generally through the district has militated against
the movement o f seasonal merchandise. Building
materials are quiet. Advance sales of merchandise
for spring and summer consumption are about on a
parity with the corresponding period last year.
Decem ber sales of the 12 reporting interests were
1.8 per cent larger than for the same month in 1926,
and 13.7 per cent below the November, 1927, total.
Stocks on January 1 were 24.9 per cent and 4.0 per
cent smaller than a year and a month earlier, respec
tively.
Iron and Steel Products — Some improvement
in purchasing of iron and steel goods and a slight
increase in specifications on materials previously
acquired occurred during the closing weeks of D e
cember. Follow ing the holiday and inventory period
operations at mills, foundries and machine shops
have been resumed at about the average rate pre
vailing in December. Business, however, is irregu
lar and spotted, with some lines complaining of dull
ness. Plants specializing in materials for use by
the railroads and autom otive industry are more
active than was the case during the past three or
four months. Manufacturers of sheets, plates, rein
forcing concrete bars and some specialty makers
report satisfactory business. T h e leading manufac
turer of sheets is operating on full time schedule,
and has sufficient orders to maintain this pace
through the first quarter. Makers of stoves and
heating apparatus also report satisfactory demand
for their wares. On the other hand, job foundries,
machinery, implement and architectural iron and
steel interests complain of lack of new orders. Fabri
cators of building materials have reduced their
operating schedules, and report a sharp decrease in
unfinished business. Distributors of iron and steel
goods from warehouses sustained a decrease in busi
ness during late Decem ber and early this month,
but report a picking up in demand generally through
the line during the past week or ten days. Demand
for oil country goods continues slow, and purchas
ing by the coal and lead and zinc industries are con
fined to absolute necessities. Prices of both raw and
finished materials showed little change w orthy of
note as contrasted with the preceding thirty days.
Buying o f pig iron for first quarter requirements
is under the volum e of the corresponding period last
year. Production of pig iron for the country as a
whole in Decem ber declined for the eighth consecu
tive month. T h e daily average output was 86,441
tons against 88,728 tons in N ovem ber and 99,651
tons in Decem ber, 1926. A ggregate output for the
year was 32,270,567 tons, which compares with
39,100,000 tons in 1926, a decline of about 7 per cent
and the lowest since 1924. Steel ingot production
increased in December, the 3,150,345 tons for that
month com paring with 3,101,764 tons in N ovember
and 3,466,766 in December, 1926.
L u m b er— F ollow ing the dull period just prior
to and during the holidays, the lumber situation has
developed slight improvement. Curtailed produc
tion continues general, and stocks in hands of dis
tributors and producers are in better condition than
has been the case for several months. Some pick up
was noted in hardwood buying, noticeable particu
larly in items used by the automotive industry. Oak
flooring manufacturers have increased their com
mitments. Buying by the furniture industry and
the general manufacturing trade is quite. Purchas
ing by retail yards continues on a hand-to-mouth
basis.
R E T A IL T R A D E
The condition of retail trade is reflected in the
follow ing comparative statement showing activity
at department stores in leading cities of the district:
N et sales com parison
Stock on hand
12 m onths ending D ec. 31, 1927
com p, to
D ec. 31, 1927 to
same period 1926 D ec. 31, 1926
+
12.0%
+ 14.9%
Evansville ........4 -12 .0%
+ 9.9
— 3.4
Little R o ck ......— 2.5
— 0.8
— 1.9
Louisville ........— 0.2
— 3.7
— 1.0
M em phis .......... 4- 9.7
— 9.4
— 5.4
Q uincy ............ 4- 3.4
— 5.0
— 1.8
St. L ou is .......4* 2.0
+ 0.6
— 6.7
Springfield, M o.— 5.6
— 2.9
— 1.6
8th D istrict......4- 2.8
N et sales com parison
D ec. 1927 com pared to
D ec. 1926
N ov. 1927
+ 2 3 .3 %
M en’ s furnishings............ + 1 7 .3 %
+ 3 5 .7
B oots and shoes ...........4" 5.0
Stock turnover
Jan. 1 to
D ec. 31,
1927
1926
2.49
2.41
2.62
2.65
3.50
3.27
2.89
3.07
2.24
2.41
3.53
3.57
1.80
1.71
3.33
3.25
S tock on hand
D ec. 1927 com pared to
D ec. 1926
N ov. 1927
+ 10.3%
— 22.0%
— 15.0
— 17.5
B U IL D IN G
In point of dollar value, building permits issued
in the five largest cities of the district in December
were the smallest for any month since 1922. The
total was 56.3 per cent less than in November, and
45.2 per cent below that of December, 1926. The
total for the year, $70,241,000, compares with
$78,538,000 in 1926, $100,911,000 in 1925 and
$85,948,000 in 1924. A ccording to figures compiled
by the F. W . D odge Corporation, building contracts
let in the Eighth Federal Reserve District in D ecem
ber totaled $33,352,300, which compares with
$27,793,287 in N ovem ber and $22,504,037 in Decem
ber, 1926. The total of contracts let for 1927 was
$401,759,100, which compares with $392,027,048 in
1926. Labor rates and prices of building materials
underwent no change w orthy of note as contrasted
with the preceding thirty days. Production of Port
land cement for the country as a whole in Decem
ber totaled 11,999,000 barrels, against 14,449,000
barrels in Novem ber and 10,757,000 barrels in
December, 1926.Building figures for
fo llo w :
December
N ew
Perm its
1927
1926
421
287
34
43
135
135
285
181
356
357
Construction
*C ost
1927
1926
$ 117 $ 126
119
86
808
1,196
376
2,400
1,664
1,817
Repairs, etc.________
Perm its
*<jost
1927
1926
1927
1926
40
21
$
14 $ 8
65
40
24
10
39
48
63
142
96
30
78
50
498
225
658
117
D ec. totals 1,231 1,003
N ov. totals 1,487 1,253
O ct. totals 1,576 2,025
* In thousands of dollars
$3,084 $5,625
7,389
5,216
3,682
5,405
(000 om itted ).
738
1,330
1,415
Evansville ..
Little R ock
Louisville ...
M em phis ....
St. Louis....
364
755
785
$ 837
1,571
1,947
$327
1,164
677
C O N S U M P T IO N O F E L E C T R IC IT Y
Public utilities companies in the five largest
cities of the district reported consumption of elec
tricity in Decem ber as being 3.3 per cent less than
in November, but 20.0 per cent larger than in D e
cember, 1926. The heavy gain in the yearly com
parison was due in large measure to the fact that
several major plants were shut down in the final
month of 1926 and in operation in December, 1927.
The decline from Novem ber to Decem ber was due
to smaller loads taken by the cement, fire clay pro
ducts and refrigeration plants. Detailed figures
fo llo w :
N o. o f
D ec.
N ov.
Custom '1927
1927
ers
* K .W .H . * K .W .H .
Evansville ..... 40
” 1,03>
1,036
L ittle R ock.... 35
1,223
1,366
Louisville ..... 80
5,162
5,405
M em phis ...... 31
1,770
1,839
St. L ou is......113
16,227
16,633
D ec. 1927
com p, to
N ov. 1927
+ 6.1% '
— 10.5
— 4.5
— 3.8
— 2.5
T otals......299
25,419
26,279
* In thousands (000 om itted ).
— 3.3
D ec.
1926
* K .W .H .
1,034
1,196
4,338
1,903
12,717
21,188
D ec. 1927
com p, to
D ec. 1926
+ 0.3%
+ 2.3
+ 1 9 .1
— 7.0
+ 2 7 .6
+ 2 0 .0
T he follow ing figures com piled by the Depart
ment o f the Interior show kilowatt production for
lighting and industrial purposes for the country as
a w h ole:
B y water pow er
N ovem ber, 1927...................2,498,747,000
O ctob er, 1927....................... 2,375,527,000
N ovem ber, 1926...................2,241,004,000
B y fuels
4,361,453,000
4,528,735,000
4,204,933,000
T otals
6,860,200,000
6,904,262,000
6,445,937,000
P O S T A L R E C E IP T S
Returns from the five largest cities of the dis
trict show an increase in postal receipts for the
fourth quarter of 1927 of 23.2 per cent over the pre
ceding three months and of 0.4 per cent over the
final quarter of 1926. Detailed figures follow :
F or Quarter E nding
j ) ec J92 7
D ec. 31,
Sept. 30,
June 30,
D ec. 31,
com p, to
1927
1927
1927
1926
D ec. 1926
Evansville ......... $ 178,000
$ 166,000
$ 167,000 $ 167,000 + 6.6%
L ittle R o ck ........
239,000
224,000
199,000
238,000 + 0.4
Louisville ..........
822,000 719,000
733,000
813,000 + 1.1
M em phis ...........
788,000
562,000
512,000
589,000 + 3 2 .1
St. L ou is............ 3,667,000
2,942,000
3,251,000
3,851,000 — 4.8
Totals............ $5,684,000
$4,613,000
$4,862,000
$5,658,000
+
0.4
A G R IC U L T U R E
W eather during the past thirty days was the
m ost seasonable o f the winter, and was on the
w hole favorable to agricultural activities. The low
temperatures of early Decem ber aided the drying
out and conditioning of corn. Dirt roads were in
generally better condition than during the preced
ing month, and the movement of farm products to
market was in liberal volume. Routine farm work
is for the most part well up to the seasonal average.
In a majority of states of the district more plow ing
for 1928 corps has been completed than the average
at this period during the past several years. The
supply of farm labor is reported universally ade
quate to demands, with some excess in scattered
localities, notably in the grain areas. W age scales
show only slight variation as contrasted with the
corresponding period a year ago.
Demand for wheat and corn has held up well,
and the decline in prices of these cereals which took
place around the middle of December was recov
ered in large part by the upturn during the final
week of that month and the opening weeks of Janu
ary. Marketing of tobacco and rice has been on a
large scale, with improvement noted in prices of
the latter product. Conditions in the live stock in
dustry show little change as contrasted with the
preceding thirty days. H o g prices continue low,
but cattle and sheep values remained at the high
levels of recent months. Indications are that fall
feeding of hogs and cattle will extend later into
winter months than is ordinarily the case.
W inter W heat — A ccording to the preliminary
estimate of the U. S. Department of Agriculture, the
area of winter wheat seeded last fall in all states
situated w holly or partly within this district ex
ceeded that of the fall of 1926. The total acreage of
these states, 8,769,000 acres, compares with 6,944,000
acres a year earlier, a gain of 24.7 per cent. W ith
the exception of Arkansas, the condition of the
grow ing crop on Decem ber 1 was higher than on the
same date in 1926, or the average during the past
ten years. The increased acreage is attributable to
a number of causes, chief am ong which are the rela
tively attractive wheat prices, excellent fall weather
and field conditions, and short acreages of wheat
during the tw o preceding years. Reports relative
to the grow ing crop are for the most part favorable.
Growth in many important sections is more uniform
than for several seasons, and good stands are the
rule in nearly all fields. Hessian fly is reported in
scattered sections, but present indications are that
the infestation is no more serious than the average
of the past decade. W hile snow covering has been
generally lacking, soil moisture is abundant.
Corn — Except in a few scattered sections,
husking and housing of corn is nearing completion.
Some recent husking returns are developing disap
pointing yields, notably in Illinois, Indiana and sec
tions of Missouri. T he return to unseasonably high
temperatures follow ing the first week of January re
sulted in considerable damage to corn in cribs from
moulding. Demand for corn continues active,
especially from the feeder trade. Movement from
farms was heavy. Out of the 2,786,288,000 bushels
of corn raised in the United States in 1927, there
were 2,320,343,000 bushels actually harvested for
grain, according to the Government report. This
is 3.9 per cent above the estimated quantity har
vested for grain in 1926, which was 2,234,160,000
bushels. In the ten leading states, there were 1,364,000,000 bushels o f grain out of a total of all corn of
1.915.000.000 bushels. O f the 98,914,000 acres of
corn grown in 1927, 83,512,000 acres were harvested
for grain, 4,347,000 acres were cut for silage and
11,044,000 acres were utilized for other purposes,
including forage. Total supplies of corn in all posi
tions for this season are 2,453,000,000 bushels,
against 2,440,000,000 bushels the previous year and
2.523.000.000 bushels in 1925.
Live Stock — An increase of 11 per cent in the
fall pig crop of 1927 over the fall crop of 1926 for
the Corn Belt states is shown in the Department of
Agriculture’s pig survey. The number of sows far
rowed last fall increased only 9 per cent in these
states, but there was a small increase in the aver
age size of litters saved last fall. An increase of
about 5 per cent for the Corn Belt states in total
pigs saved, both spring and fall, is shown in the
1927 surveys. These increases are equivalent to
between 2^2 and 3 million pigs. W ith cholera losses
last fall below the unusual losses in the fall of 1926,
the increase in hogs for slaughter is probably some
what larger than the above indicated increase in
pigs reported saved.
Scarcity and high prices of feeders and either a
shortage or lack of surplus corn above local farm
feed requirements were the chief causes for a slump
in cattle feeding this season in Illinois and some
other states of the district. Scattered reports show
a much larger proportion of light weight cattle and
less middle and heavy weights on feed than a year
ago. The general movement to market will also be
later than usual.
Receipts and shipments at St. Louis, as reported
by the National Stock Yards, were as follow s:
_________ R eceipts_______
D ec.
N ov.
D ec.
1927
1927
1926
Cattle and Calves...... 92,520 130,862 105,097
H o g s ............................305,676 281,578 309,117
H orses and M ules.... 7,424
7,891
3,421
Sheep ............................ 35,191 35,211 37,021
______ Shipments________
D ec.
N ov.
Dec.
1927
1927
1926
62,554 84,34 l' 68,879
213,924 190,289 225,085
7,941
8,533
3,103
17,669 17,640 13,596
Cotton — The season considered, weather con
ditions were favorable for field work from the mid
dle of Decem ber to the close of the year. Since that
date, however, field work, including belated har
vesting, has been virtually at a standstill, due to
low temperatures. The extreme cold was beneficial
to the soil, besides serving as a destructive agency
to boll weevils. O w ing to the expedition with which
the 1927 crop was harvested, fields are bare of cot
ton and ready for new crop preparation as soon as
weather permits. Financially cotton farmers are in
better position than in several years, and generally
through the district indications are for plentiful
labor supplies. These conditions, coupled with the
closing of the principal breaks in levees caused by
the 1927 floods, are pointed out as factors favorable
to an increased acreage this year. Prices declined
slightly during the past thirty days, but averaged
considerably higher than during the corresponding
period a year ago. Stocks in Arkansas warehouses
on January 13 were 291,792 bales, against 512,540
bales on the same date in 1927.
T obacco — Since the opening of the several
tobacco markets, a high level of prices has been
maintained for all types and grades of leaf. In the
burley loose-leaf market a considerable volume of
fair to good quality has been marketed at the high
est prices of the season. This is especially true of
all colory grades, even though not of a distinct type.
F ollow ing the holidays weather has not been as
favorable for the movement in the dark fired dis
tricts and offerings have been relatively small and
of interior quality, but high prices have prevailed
for everything selling. Demand for lugs has in
creased, causing advances in prices. Common and
medium leaf tobacco continues firm and all good
quality sells high. Unfavorable weather also pre
vailed in the green river air-cured districts, result
ing in small sales, but market has been strong for
all grades. Favorable weather is needed to permit
of a free movement of the crop. A large part of the
crop in all sections is expected to be sold by Febru
ary 1.
Rice — Threshing has been entirely completed
and approximately 60 per cent of the crop has been
sold to the mills. Demand for clean rice has im
proved somewhat and prices were higher than dur
ing the preceding thirty days.
Com m odity Prices — Range of prices in the
St. Louis market between Decem ber 15, 1927 and
January 15, 1928, with closing quotations on the
latter date and on January 15, 1927.
H igh
W heat
July .................
N o. 2 red w inter
N o. 2 hard......
Corn
**
“
If
((
ti
July .................
U
N o. 2 mixed....
N o. 2 white....
Oats
(i
N o. 2 white....
Flour
Soft patent.....
**
Spring patent..
M iddling cotton....per lb.
H ogs on h oof......
1.26
1.52
1.37
Close
Jan. 15, 1927
L ow
Jan. 15,1928
$ 1 .3 8 ^
$1.29
$ 1 .3 1 ^
1.25%
1.26
1.41
1.52 <
1.40
1.30
$1.35 @ 1 .3 6
1.43
.94%
.94%
.86%
.87
.87%
.93H
.78%
.79%
.93
.94
.85% @ .86
.87
.58%
.55
.57
7.50
6.90
.19%
9.05
6.50
6.50
•18 U
6.75
6.60
6.60
7.00'
@ .57%
.82%
.78
@
.80
.49% @
.50
@ 7 .50
7.00
@ 6 .7 0
6.95
.18 H
@ 8 .4 5 :
D 7.50
5 7.25
.12%
H 2.45
F IN A N C IA L
Changes in the banking and financial situation
in this district during the past thirty days were not
of a particularly marked character, and reflected
the usual seasonal influences. Demand for funds
incident to January 1 dividend and interest require
ments created a temporary stiffening in rates, but
in their ultimate effect these disbursements were
negative, constituting merely a shifting of credits.
Loanable funds with both city and country banks
continue abundant, and more country banks are
seeking investments for their surplus. In the large
centers, January 1 settlements with wholesalers and
manufacturers were in large volume and resulted in
fair liquidation at the banks.
Generally through the district liquidation con
tinues in good volume, with a particularly favorable
showing being made in the tobacco, rice and grain
areas. Payments in the cotton section have also
been satisfactory, though the recent decline in prices
of that staple has had a tendency to slow down gen
eral business, and in some quarters there is a dispo
sition to hold cotton for better prices. Grain hand
lers and flour millers slightly decreased their com
mitments as compared with the preceding month,
and the total volum e of loans of this class are slight
ly below that of a year ago. A continued fair de
mand for live stock financing is reported.
Loans of the reporting member banks declined
slightly during the period under review, but on each
weekly reporting date were higher than a year ear
lier. Deposits of these banks decreased during the
last half of December, but in the week of January
11 moved upward to close to the high point recorded
in 1927. Borrow ings of members from this bank con
tinued sharply below those at the corresponding
period a year ago.
A t the St. Louis banks current rates of interest
were as follow s: Prime commercial loans 4 to 5%
per cent; collateral loans, AT
/2 to 5j4 per cent; in
terbank loans, 4^4 to 5% per cent; loans secured by
warehouse receipts, Ay2 to 5 y2 per cent, and cattle
loans, Sy2 to 6 per cent.
Debits to Individual Accounts — The follow ing
table gives the total debits charged by banks to
checking accounts, savings accounts, certificates of
deposit accounts, and trust accounts of individuals,
firms, corporations and U. S. Government in leading
cities of the district. Charges to accounts of banks
are not included.
*D ec.
1927
E. St. Louis & N at’ l.
Stock Yards, 111..$ 65,772
El D orado. Ark....
8,586
Evansville, In d ..... 52,663
F ort Smith, Ark... 14,995
Greenville. Miss....
4,350
4,979
Helena, A rk ...........
Little R ock, Ark.. 92,524
Louisville, K y ........ 201,523
Memphis, T en n ..... 195,466
O w ensboro, K y .....
6,671
Pine Bluff, A rk ,,, 16,342
Quincy, Ills............ 13,769
St. Louis, M o ....... 858,340
4,911
Sedalia, M o ............
Springfield, M o...... 16,093
*N ov.
1927
*D ec.
1926
$ 51,820
9,269
46,601
15,492
4,197
6,464
101,055
184,614
200,443
5,167
17,130
13,073
761,467
4,335
15,200
$ 47,135
10,485
46,934
15,276
4,892
4,632
84,343
197,677
161,301
6,318
12,841
12,961
816,280
5,495
16,991
T otals............ $1,556,992 $1,436,327
*In thousands (000 om itte d ).
$1,443,561
D ec. 1927 comp, to
N ov. 1927 D ec. 1926
+ 2 6 .9 %
— 7.4
+ 13.0
— 3.2
+ 3.8
— 23.0
— 8.4
+ 9.2
— 2.5
+ 2 9 .1
— 4.6
+ 5.3
+ 12.7
+ 13.3
+ 5.9
+ 3 9 .5 %
— 18.1
+ 12.2
— 1.8
— 10.9
+ 7.5
+ 9.7
+ 1-9
+ 2 1 .2
+ 5.6
+ 2 7 .3
+ 6.2
+ 5.2
— 10.6
— 5.3
+
+
8.4
7.9
Condition of Banks — Loans and discounts of
the reporting member banks on January 18, showed
a decrease of 1.0 per cent as compared with D ecem
ber 14, 1927, and an increase of 2.9 per cent as com
pared with January 19, 1927. Deposits decreased
0.8 per cent between December 14, and January 18,
and on the latter date were 6.2 per cent larger than
on January 19, 1927. Composite statement fo llo w s :
N um ber of banks reporting........................
Loans and discounts (incl. rediscounts)
Secured by Oother stocks and
T otal loans and
Investments
U. S. G ov’ t se
Other securitii
Total investments.......
Reserve balance with F. R.
Cash in vault.............. .
Deposits
Tim e deposi
Government deposits..
...
*Jan. 18,
1928
t30
*Dec. 14, *Jan. 19,
1927
1927
31
31
...$ 4,198
... 212,215
... 302,743
$
...$519,156
$524,302
$504,542
85,129
... 129,462
78,152
128,773
65,723
121,916
$214,591
50,627
7,517
$206,925
50,898
9,417
$187,639
47,087
7,750
430,509
... 245,935
1,665
448,994
234,414
374
409,161
226,375
3,082
.,
5,095
213,038
306,169
$
5,922
189,449
309,171
...$678,109 $683,782 $638,618
Total deposits...............................
Bills payable and rediscounts
with F. R. Bank
5,895
2,969
3,935
Secured by U . S. G ov’ t o
963
3,347
5,836
A ll others...............................
*In thousands (000 om itted).
tDecreases due to consolidation. These 30 banks are located in St. Louis,
Louisville, Memphis, Little R ock and Evansville, and their total resources
comprise approximately 55.5 per cent of the resources of all member
banks in the district.
Federal Reserve Operations — During Decem
ber the Federal Reserve Bank of St. Louis dis
counted for 166 member banks, against 121 in
November and 218 in December, 1926. The dis
count rate remained unchanged at 3y2 per cent.
Changes in the principal assets and liabilities of
this institution as compared with the preceding
month and a year ago appear in the follow ing ta b le:
U. S.
F. R. notes in circulation................
Total deposits........................................
Ratio of reserves to deposits and
F. R. note liabilities......................
*In thousands (000 om itted ).
(Compiled Jan. 21, 1928)
*Jan. 21,
1928
,$21,644
, 9,774
. 34,273
*D ec. 21,
1927
$22,831
4,569
38,163
*Jan. 21,
1927
$14,230
9,967
20,765
.$65,691
, 54,293
. 87,441
$65,563
57,300
85,093
$44,962
46,588
83,328
58.3%
58.2%
69.4%
B U SIN E SS C O N D IT IO N S IN T H E U N IT E D S T A T E S
Industrial activity continued in D ecem ber at a rela
tively low level and railroad distribution of commodities
declined further, while the general level o f prices remained
unchanged. H oliday trade in retail stores was in somewhat
larger volum e than in the previous year.
P R O D U C T IO N — Production of manufactures re
mained in practically the same volum e in D ecem ber as in
N ovem ber, while output o f minerals, when allowance is
smaller at the end o f D ecem ber than a year earlier and
stocks o f dry goods and drugs w ere slightly larger. Freight
car loadings declined further in D ecem ber and w ere in
smaller volum e during that m onth and the early part o f
January than at any time in four years. T h e decrease in
loadings occurred in practically all groups o f com m odities.
P R IC E S — The Bureau o f Labor Statistics index o f
wholesale com m odity prices remained practically unchanged
Index o f U nited States Bureau of L abor Statistics (1 9 2 6 = 1 0 0 , base
adopted by B ureau). Latest figure, D ecem ber, 96.8.
figure, D ecem ber, 99.
made for usual seasonal changes, show ed a slight increase.
Activity in the textile, shoe, and tobacco industries was
reduced in D ecem ber, while the output o f steel non-ferrous
metals and petroleum increased. Production of automobiles
continued in small volum e during Decem ber, but increased
considerably in January, and within recent weeks there
has been also a further increase in the activity of steel mills.
Building contracts awarded were slightly larger in
D ecem ber than in N ovem ber, but smaller than in Decem ber
o f the tw o preceding years. T otal awards for the year 1927
in thirty-seven eastern states, as reported by the F. W .
D od ge Corporation, were valued at about $6,300,000,000,
which is slightly less than the 1926 total of $6,380,000,000.
D ecem ber awards for residential and commercial buildings
were larger than in D ecem ber, 1926, while those for in
dustrial building and public w orks were smaller.
D uring the first three weeks of January contracts
awarded were in approxim ately the same volume as during
the corresponding weeks o f last year.
in D ecem ber and was, at the end o f the year, about 1 per
cent low er than a year ago. Prices o f grains, hide and
leather products, non-ferrous metals, and rubber increased
in D ecem ber, while prices of livestock, cotton, and lumber
declined. In the first three weeks o f January, there w ere
increases in prices o f iron and steel, grains and w ool, while
prices o f cattle, hogs, and cotton declined.
B A N K C R E D IT — A t the Federal reserve banks the
seasonal demand for currency, after reaching its peak on
D ecem ber 24, was follow ed by a return flow o f m oney
from circulation, which amounted to about $440,000,000 be
tween D ecem ber 24 and January 18. This decline in the
demand for currency, which was approxim ately the same
as a year ago, was reflected in a decrease for the same
period o f about $360,000,000 in bills and securities o f the
reserve banks. Loans and investments o f m em ber banks
in leading cities declined during the first half o f January,
but w ere still at a higher level than at any time last year.
T he decline o f about $200,000,000 between January 4 and
CURVE 1
MILLIONS OP DOLLARS
.
Reserve Bank j
1000
v .
i
............ /
_
. /
,
\
V
A
CURVE 2
u
15CaJ
s *
5600
{
5000
Money in
Circulation1
4500
500
a JRRENCY Al40
RESEIRVE BANK C:r e Dit
0
192*
1925
1926
1927
1928
11
1924;
1I-
1925
. .
1926
4000
'
1927
19?8
M onthly averages of daily figures for 12 Federal reserve banks.
Latest figures are averages of first 23 days in January.
M on ey in circulation data are averages of first-of-m onth figures and
reserve bank credit data are m onthly averages of daily figures.
Latest figures, January, partly estimated.
T R A D E — Retail sales o f department stores and mail
order houses increased slightly m ore than is usual in D e
cem ber and were som ewhat larger than a year ago. Inven
tories o f merchandise carried by department stores were
reduced in D ecem ber and at the end o f the year were
slightly smaller than at the end o f 1926. W holesale trade
in nine leading lines continued smaller than in the cor
responding m onth o f last year. Stocks o f groceries, shoes,
hardware and furniture carried by wholesale firms were
January 18 reflected a decrease o f about $280,000,000 in the
volum e o f loans on securities, offset in part by a consider
able increase in the banks’ investm ent holdings.
Call loan rates show ed the usual seasonal decline at
the turn o f the year, but other m on ey rates w ere slightly
firmer. The rate on bankers’ acceptances increased during
the second week o f January from 3 % to 3 ^ per cent, and
there was also a slight advance in rates on time m oney
in the open market.
@FedFRASER