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MONTHLY REVIEW O f Agricultural, Industrial, Trade and Financial Conditions in the Eighth Federal Reserve District Released for Publication On and After the Afternoon of January 31, 1929 R O L L A W ELLS, Chairman and Federal Reserve Agent FEDERAL Assistant Federal Reserve Agent RESERVE R E P O R T S relative to business and industry in this district during the past thirty days developed rather sharp contrasts. Relatively most satisfactory results were achieved in the manu facturing lines, notably in iron and steel, packing and food products generally. Resumption of activi ties at industrial plants after the holiday and inven torying interruption was more rapid than is ordi narily the case. In the distribution of merchandise, the retail section made a better exhibit than was the case in wholesaling and jobbing, though despite a heavy volume of Christmas buying, retail sales in Decem ber were slightly below the volum e of the corresponding month in 1927. O f the wholesale lines investigated, a large m ajority showed de creases in sales both under the preceding month and the same period a year earlier. Throughout December the movement into con sumption of seasonal merchandise, particularly ap parel, fuel, boots and shoes, sporting goods and certain lines of hardware, was restricted by unsea sonably warm weather. Reordering of commodities in these classifications was disappointingly small, and some cancellations were reported. Since the first of January, however, the spell of low temperatures has materially stimulated the demand for cold weather goods, and in all parts of the district mer chants have been able to measurably reduce their stocks. A further stimulus to retail distribution since the turn of the year has been the holding of numerous special sales, which have met with excel lent response. Inventory taking has disclosed almost univer sally small stocks, both in wholesale and retail es tablishments. The same is true of raw materials held by manufacturers in important lines, who dur ing the past year have adhered to the policy of purchasing principally on an actual requirement basis. For the most part orders booked by manu facturers and jobbers for future delivery are below lo s e of the corresponding period last year, and this is accountable in a large degree for the decrease in C. M . STEW ART, BANK OF ST. J. V I O N P A P I N , Statistician LOUIS sales reported in December as contrasted with that month in 1927. In the case of certain wholesale and jobbing lines, the seasonal decline from November to December was more pronounced than the average during the past half decade. Employment condi tions, influenced mainly by seasonal considerations, showed little change from the preceding month, and were 011 the whole satisfactory Savings accounts in December decreased slightly as compared with November, but were 3.5 per cent larger on January 4 than a year earlier. Building contracts let in the Eighth Federal Reserve District in December ex ceeded the November total, and the total for 1928 was 10.8 per cent larger than in 1927. Freight traffic of railroads operating in this dis trict attained high levels during the past thirty days, the volume reported by several important trunk lines being the largest on record for that particular period. The traffic decrease incident to the holidays was less marked than is ordinarily the case, and in creases were shown in virtually all classifications, with merchandise and miscellaneous freight making a particularly good exhibit. The movement of coal and coke was considerably above that of a year ago. For the entire country, loadings of revenue freight during 1928 totaled 51,576,732 cars, against 51,666,765 cars in 1927 and 53,098,819 cars in 1926. The St. Louis Terminal Railway Association, which handles interchange for 28 connecting lines, inter changed 208,747 loads in December, against 196,502 loads in November, and 199,342 loads in December, 1927. During the first nine days of January the in terchange amounted to 61,802 loads, against 62,936 loads during the corresponding period in December, and 58,120 loads during the first nine days of Janu ary, 1928. Passenger traffic of the reporting roads decreased nine per cent in December as compared with the same month in 1927. Estimated tonnage of the Federal Barge Line between St. Louis and New Orleans in December was 148,200 tons, which compares with 148,218 tons in November and 114,063 tons in December, 1927. The total tonnage handled in 1928 was the largest on record, 1,448,257 tons, against 1,237,430 tons in 1927, and 1,044,658 tons in 1926. Collections during the past thirty days devel oped some irregularity, both with reference to different localities and the several lines investigated. The average, however, was about even with the pre ceding month, and slightly lower than during the corresponding period a year earlier. In sections where cotton is the principal crop, liquidation both with merchants and the banks continued on a liberal scale, and payments in the tobacco areas showed favorable response to heavy marketings of that crop. December payments to retailers in the country showed the usual seasonal slump, but since the first of this month results have been more satisfactory. In the large cities unevenness was reported by re tailers. For the most part wholesalers report Jan uary 1 settlements up to expectations, with some lines, notably boots and shoes, hardware and dry goods, making a particularly good showing. Ques tionnaires addressed to representative interests in the several lines throughout the district showed the follow ing results. Excellent G ood Fair P oor December, 1928........... 2.8% 57.8% 33.8% 5.6% 34.2 52.1 12.3 November, 1928........... 1.4 December, 1927........... 4.0 36.4 54.7 5.3 Commercial failures in the Eighth Federal R e serve District in November, according to Dun’s, numbered 103, involving liabilities o f $1,477,305, against 125 defaults in N ovem ber with liabilities of $5,740,158, and 84 failures for $2,923,187 in D ecem ber, 1927. The per capita circulation of the United States on Decem ber 31, 1928, was $41.77, against $41.95 on Novem ber 30, 1928, and $42.52 on December 31, 1927. 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 during Decem ber totaled 233,135, which compares with 256,936 in November, and 133,579 in December, 1927. There was the usual seasonal decrease in dis tribution of automobiles in December as compared with November, but for the eighth consecutive month, Decem ber showed a gain over the corre sponding period the year before. Part of the de crease as contrasted with N ovem ber was due to the fact that one leading manufacturer of cheap priced cars was out of production in Decem ber preparing for introduction of a new model. In both the month-to-month and yearly comparisons, relatively the heaviest falling off in sales was reported by country dealers. Sales of dealers in the large cities were augmented by an unusually large number of cars ordered for delivery at Christmas. U niver<=^^ there was a disposition to await the autc "1lC shows to be held in late January and February be fore making commitments. This same attitude pre vailed among dealers, who were purchasing only enough cars to fill actual and prospective orders. Inquiries and interest, however, were well sustained through all lines of vehicles, and reports from vir tually all sections of the district reflect favorable prospects for spring trade. December sales of new cars by 320 dealers scattered through the district were 48.5 per cent smaller than in November, but 117.1 per cent larger than in D ecem ber, 1927. Stocks of new cars on hand on January 1 were 6.2 per cent larger than on Decem ber 1 and 11.5 per cent in excess of those on January 1, 1928. The used car situation developed no marked changes as compared with the preceding thirty days. Sales were in satisfactory volume, and the number of cars on hand decreased, both as contrasted with thirty days and a year earlier. Organizations formed for the purpose of purchasing and dismantling old machines have substantially reduced the number of old vehicles on the market. The number of salable used cars on hand on January 1 was smaller by 2.6 per cent than on December 1, and 3.2 per cent than on January 1, 1928. Business in accessc. and parts was reported generally active, with saits 3.2 per cent less than in November, and 8.3 per cent greater than in December, 1927. A ccording to deal ers reporting on that item, 52.9 per cent of their total sales were on the deferred payment plan, which compares with 54.3 per cent in November, and 47.4 per cent in December, 1927. Boots and Shoes — Decem ber sales of the five reporting interests were the smallest for any month last year, falling 57.9 per cent below those of November, and 29.2 per cent below the total in December, 1927. Stocks on hand on January 1 were 11.6 per cent and 2.8 per cent larger respectively, than a month and a year earlier. The decline in sales shown in the month-to-month comparison was seasonal in character, but somewhat heavier than the average during the past half decade. Demand for w om en’s and children’s footwear was relatively better than for the heavier lines of men’s wear and work shoes. Factory operations declined slightly as compared with the preceding thirty days. No changes worthy of note took place in finished goods. Clothing — Reports relative to business in'this classification reflected considerable unevenness. W hile there was some improvement in ordering of both men's and w om en’s apparel for distribution in the spring, the movement of heavyweight gar ments throughout Decem ber was disappointing, being affected by unseasonable weather. Since the first of this month, improvement has developed in this respect, purchasing being stimulated by pre vailing low temperatures and numerous special sales. The movement of men's overcoats has been below expectations. Decem ber sales of the report ing clothiers were 29.2 per cent smaller than for the same month in 1927, and 57.9 per cent below the N ovem ber total. Drugs and Chemicals — Improvement in this classification was reported, both over the preceding month and a year earlier. The influenza epidemic was accountable for heavily increased sales of remedial drugs and proprietary preparations, tw o important firms reporting the heaviest sales of these goods in more than tw o years. Reordering of holi day goods, notably toilet preparations and cosm et ics, assisted in augmenting the Decem ber totals. Demand for heavy drugs and chemicals from the manufacturing trade was generally good, and sales of denatured alcohol and anti-freeze mixtures were large. Sales in Decem ber of the five reporting in terests were 1.4 per cent larger than in November, and 3.7 per cent greater than for December, 1927. Stocks on January 1 were 3.6 per cent less than on the same date last year, and unchanged from the Decem ber 1, 1928, total. D ry G oods — For the fourth consecutive month, business in this classification during December showed a decrease under the corresponding period in 1927. Declines were rather general in all sections of the line, but most marked in staple goods. In the case of tw o of the leading stores, the major part of the decrease in sales was accounted for by a sharp reduction in future orders. The requirements usually filled by advance orders, however, remain as potential business, and with retail stocks gener ally light, the outlook for late winter and spring trade is considered good. Orders booked by sales men w ho went into their territories shortly after January 1, have been in satisfactory volume, in some instances 10 to 15 per cent larger than at the same time last year. Decem ber sales of the eight report ing interests were 32.4 per cent smaller than in November, and 11.5 per cent below the December, 1927, total. Stocks on January 1 were 9.4 per cent larger than thirty days earlier, but 11.5 per cent smaller than on January 1, 1928. Electrical Supplies — Im proved demand for /a d io material and unusually heavy buying of holi day goods were factors in a gain of 10.1 per cent in December sales of the reporting firms over the same month in 1927. As compared with November, h ow ever, the Decem ber total showed a decrease of 3.2 per cent. Stocks on January 1 were 1.4 per cent and 16.2 per cent, smaller respectively, than thirty days and a year earlier. There was the usual slump in demand from the building trade, which, however, was partly offset by good buying by the public utilities companies. Flour — Production at the 12 leading mills of the district in Decem ber totaled 357,844 barrels, against 365,042 barrels in November and 345,793 barrels in December, 1927. Stocks of flour in St. Louis on January 1 were 3.9 per cent larger than on December 1, 1928, and 2.0 per cent smaller than on January 1, 1928. Business during the last half of December and the opening days of this month was extremely dull, being affected by the holiday period and inventorying. Since the first week of this month, however, there has been a decided revival of interest, and fair sales to the domestic trade were reported. Shipping directions on flour previously purchased also picked up and values were stronger in sympathy with the upturn in cash wheat prices. W hile actual sales for export were light, a better tone has developed in that trade, and bids from abroad were slightly higher. Mill operations were from 45 to 50 per cent of full capacity. Furniture — Decem ber sales of the 13 reporting interests were 10.1 per cent smaller than in N ovem ber, but 31.3 per cent larger than in December, 1927. Stocks on January 1 were 13.8 per cent less than thirty days earlier, and 11.3 per cent greater than on January 1, 1928. Christmas holiday business with retailers exceeded expectations, and resulted in a good clearance of certain lines, and a fair volume of reordering from wholesalers and manufacturers. Demand for household furniture and furnishings generally showed some improvement, but slightly more than usual seasonal recession was noted in other departments of the trade. Groceries — Disappointing advance sales and unfavorable weather were mentioned as the chief factors in a decrease in December sales of the 14 reporting intersts of 1.7 per cent under those for the same month a year earlier, and of 6.3 per cent be low the November, 1928, total. Stocks on hand on January 1 were smaller by 17.3 per cent than thirty days earlier, and 17.6 per cent greater than on January 1, 1928. The movement of holiday goods was large, but purchasing of staple lines, particu larly in the rural areas, was below expectations. Prices showed no notable changes as contrasted with the preceding month. Hardware — W hile demand for seasonal and staple hardware continues fairly active, certain specialty lines and merchandise for consumption in the rural areas showed a falling off, with the result that December sales of the 12 reporting interests were 17.3 per cent less than in Novem ber and 6.4 per cent below the total in December, 1927. Stocks on January 1 were smaller by 8.8 per cent than thirty days earlier, and 5.3 per cent larger than on January 1, 1928. Since the first of January there has been a better demand at retail for cold weather goods, which has been reflected in a moderate v ol ume of ordering from wholesalers. Ordering for spring and early summer distribution has been dis appointing. Iron and Steel Products — The holiday and in ventory period was marked by considerably less than the usual slow ing down in activities in the iron and steel industry. Business up to the last week in December continued brisk, and since the second week of this month operations at mills, foundries and machine shops have been resumed at a rate somewhat above the average in December. Ship ments of both finished goods and raw materials con tinue on a liberal scale, and in the case of certain steel commodities, deliveries are behind schedules. Recent orders for freight and passenger equipment placed by the railroads have had a stimulating effect on the situation as a whole, and have proved of espe cial benefit to manufacturers and distributors of plates and sheets, and to plants specializing in rail road castings. Demand from the automotive indus try was well sustained, with specifications and new ordering of body plates, bars and other materials being in good volume. Commitments of users of steel generally are being made somewhat more free ly than heretofore. Requirements of the building industry, while showing the usual seasonal reces sion, are fully up to the average at this time during the past several years. In addition to better car orders, the railroads have increased their buying of track supplies and general repair materials. Special ty makers, notably of stoves, farm implements and machinery for the most part report unfilled orders larger than at the corresponding period in 1928. W hile many stove plants in the district have closed down for repairs and the making of new patterns, a majority of them plan to resume operations at an earlier period than in past years. Distributors of iron and steel goods from warehouses report a slightly better than seasonal demand for their general line, with several important commodities showing consid erable life. A slowing down in demand for goods used in the rural districts was noted, an exception being wire fencing, which continues in good call throughout the district. Purchasing of tubular goods, and oil country goods in general was disap pointing, and demand from the bituminous ^oal irrf dustry is also slow. Prices of finished goods showed no change of importance as compared with the pre ceding thirty days. The recent upturn in scrap iron and steel prices has had a steadying influence on pig iron. A s usual at this season, however, new buying of pig iron was light, though shipments continue at the high levels which marked the closing month of 1928. For the country as a whole, production of pig iron in December totaled 3,369,784 tons, the largest with exception of October of any month in that year, and comparing with 3,304,656 tons in November, and 3,698,208 tons in December, 1927. Steel ingot production in the United States in December, 4,015,434 tons, was the highest on record for that month, and compares with 4,295,380 tons in N ovem ber, and 3,175,484 tons in December, 1927. 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: Stocks on hand Stock turnover N et sales com parison Jan. 1, to D ec. 1928 12 months ending- D ec. 31, 1928 D ec. 31, com p, to D ec. 31, 1928 to _ com p, to D ec. 31, 1927 1928 1927 D ec. 1927 same period 1927 2 .2 ^ 2.68 + 6.0% 4.2% + 6.9% 2/ 2.55 — 4.9 0.6 + 1-9 3.43 3. — 6.3 — 3.3 1.7 3.37 3.0. — 16.0 + 1.3 6.8 Mem phis 2.79 2.41 — 0.2 9.0 + 10.6 3.89 3.57 — 8.5 + 0.3 0.6 — 2.2 1.77 1.71 — 1.3 2.4 3.55 3.33 + 0.3 — 8.9 1.2 8th District.. N et sales com parison Stocks on hand D ec. 1928 com p, to D ec. 1928 com p, to D ec. 1927 N ov. 1928 D ec. 1927 N ov. 1928 M en’ s furnishings.......... . . + 3.5% + 52.6<J — 2 .3 % — 21.6% B oots and shoes.................— 4.6 + 33.0 + 12.0 — 11.8 Department Store Sales by Departments — As reported by the principal department stores in Lit tle Rock, Louisville, Memphis, and St. Louis. Percentage increase or decrease D ec. 1928 com pared to D ec. 1927 N et sales Stocks on hand for m onth at end of month Piece go o d s............................................. — 13.1% — 13.6% R eady-to-w ear accessories.................— 3.3 — 11.2 W om en and misses’ rea d y-to-w ea r+ 1.2 — 10.5 M en’s and b oys’ wear......................... — 2.2 — 9.9 H om e furnishings................................. — 14.7 — 10.2 CONSUM PTION OF E L E C T R IC IT Y Public utilities companies in the five largest cities of the district reported consumption of electric current by selected industrial customers in D ecem ber as being 5.0 per cent greater than in the same month in 1927, and 6.0 per cent less than in N ovem ber, 1928. In the month-to-month comparison, the decrease is accounted for by seasonal reduction of loads taken by refrigeration and cold storage pla' ^ The gain over December, 1927, was quite genei^ *y distributed but m ost notable in iron and steel estab lishments. Detailed figures fo llo w : N ov. N o. of D ec. Custom1928 1928 ers * K .W .H . * K .W .H . 1,2174 Evansville .... 40 1,370 Little R ock.. 35 1,792 1,982 Louisville .... 87 5,876 6,220 M em phis .... 31 1,869 1,983 St. Louis. .... 129 15,784 16,924 Totals......322 26,691 * In thousands (000 om itted ). D ec. 1928 com p, to N ov. 1928 4— — — — 7.5% 9.6 5.6 5.8 6.8 — 6.0 28,383 D ec. 1927 * K .W .H . 1,037 1,223 5,162 1,770 16,227 25,419 D ec. 1928 com p, to D ec. 1927 + 2 2 .8 % + 4 6 .5 + 13.8 + 5.6 — 2.8 + 5.0 B U IL D IN G The dollar value of building permits issued in the five largest cities of the district in December showed an increase of 34.0 per cent over the same month in 1927, and a decrease o f 38.7 per cent as compared with November, 1928. A ccording to sta tistics compiled by the F. W . D odge Corporation. Contracts let in the Eighth Federal Reserve District in Decem ber totaled $31,378,972, against $27,301,820 in N ovem ber and $33,352,300 in December, 1927. The total for 1928 was $445,101,972, representing a gain of 10.8 per cent over 1927. No change occurred in the building costs as contrasted with the preced ing thirty days. Production of portland cement for the country as a whole in December totaled 12,189,000 barrels, against 15,068,000 barrels in November, and 11,999,000 barrels in December, 1927. Building figures for Decem ber fo llo w : Evansville .. Little R ock Louisville .. Mem phis . .. St. L ou is- .. N ew Construction *C ost Permits 1928 1927 1928 1927 421 $ 197 $ 117 273 292 119 34 31 808 78 135 556 376 161 285 369 1,664 356 2,718 346 889 1,231 $4,132 $3,084 Dee. totals 6,742 7,389 N ov. totals 1,429 1,487 O ct. totals 2,063 1,576 6,093 3,682 *In thousands o f dollars (000 om itted). Repairs, etc. *Cost Perm its 1927 1928 1927 1928 40 $ 7 $ 14 17 11 24 65 32 39 616 63 44 44 78 69 96 201 498 203 658 363 555 603 738 1,330 1,415 $ 881 771 533 $837 1,571 1,947 P O S T A L R E C E IP T S Returns from the five largest cities of the dis trict show a decrease in combined postal receipts for the final quarter of 1928 of 3.5 per cent as com pared with the corresponding period in 1927, and a gain of 21.4 per cent as compared with the third quarter o f 1928. The loss as compared with the final quarter of 1927 was largely due to lower postal rates on certain classes of mail matter, while the gain over the preceding three months was seasonal in character. Detailed figures follow : D e c 31, 1928 Evansville ....$ 172,000 Little Rock.... 243,000 Louisville ...... 796,000 M em phis ....... 734,000 St. L ou is........ 3,544,000 T ota l......... $5,489,000 F or quarter ending Sept. 30, June 30, 1928 1928 $ 173,000 $ 173,000 245,000 220,000 661,000 715,000 573,000 620,000 2,869,000 3,082,000 $4,521,000 $4,810,000 j ) ec 1928 D ec. 31, com p, to 1927 D ec. 1927 $ 178,000 — 3.6% 239,000 + 1.7 822,000 — 3.2 788,000 — 6.9 3,667,000 — 3.7 $5,694,000 — 3.5 A G R IC U L T U R E Farm activities in the northern portion of the district during the past thirty days have consisted chiefly in feeding stock, com pleting corn husking and housing, planning for spring planting and the usual cold weather routine. Until the first of this month weather was unusually mild, and on the whole un favorable for agriculture. Dirt roads were heavy, and fields in many sections too muddy to permit of their being entered. In the south early plow ing and soil preparation made only fair progress, and gener ally the movement of products to market was back ward. Since January 1, however, freezing tempera tures have improved roads, and hauling of corn to railroad terminals has increased. A good demand and firmer prices also served to stimulate the for warding of certain products. Alm ost universally there has been abundant moisture, and soil condi tions are excellent. There was no change worthy of note in farm labor conditions, the supply being adequate, with wages showing little variation as contrasted with a month and a year earlier. 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 wholly or partly within the Eighth Federal Reserve District was below that of the fall of 1927. The total acreage of these states, 7,077,000 acres, com pares with 8,736,000 acres a year earlier, a decrease of 19.0 per cent. The December condition of the growing crop in all these states was lower than at the same time in 1927, though with the exception of Mississippi and Arkansas, two relatively unim portant wheat states, the condition was higher than the ten-year (1918-1928) average. Until the first of this month the crop generally lacked snow covering, and there were numerous complaints of heaving, caused by alternate freezing and thawing. The ex tent of the damage from this cause will be impossi ble to determine until the spring, and recent snows are thought to have materially assisted the position of the plant. For the country as a whole the area planted last fall was estimated at 43,228,000 acres, which compares with 47,280,000 acres in 1927, and 43,373,000 acres in 1926. Corn — In some sections yields were reduced by overflows, with quality lowered, although not to the extent expected. Recent arrivals at primary points include considerable high-grade corn, though the autumn and early winter were generally un favorable for curing and conditioning the crop. Har vesting was later than usual, being hampered in many important grow ing areas by rains and muddy fields. In the immediate past, however, excellent progress has been made, especially in the northern tier of counties. Farmers in Missouri and Illinois are paying slightly above day wages for husking and snapping, although labor is plentiful. In re sponse to a good demand from live stock feeders and manufacturers of corn products, prices advanced during the period, the May option in St. Louis clos ing at $1.01 per bushel on January 15, as compared with 933/ 2C on December 15. Live Stock— A ccording to the U. S. Department of A griculture’s Decem ber pig survey, in the corn belt states the decrease in the fall pig crop as com pared with a year earlier was 1^4 per cent, while large decreases were shown in the southern states. The number of sows farrowing decreased 7 per cent for the United States as a whole and about 4 per cent for the corn belt states. If the decreases shown in the spring and fall crops are applied to the total number of pigs saved in 1927, the total decrease in the pigs saved this year amounts to about 5,000,000 head for the entire country. The decrease in the corn belt states would be about 3,200,000 head. 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. 1928 1928 1927 Cattle and Calves..... 87,244 104,292 92,520 H ogs .............................401,137 359,455 305,676 H orses and M ules.... 6,540 5,856 7,424 Sheep ........................... 23,955 24,272 35,191 Shipments D ec. N ov. Dec. 1928 1928 1927 60,344 57,373 62,554 287,148 277,616 213,924 6,585 4,768 7,941 10,835 9,514 17,669 Cotton — Some cotton still remains in the fields, especially in northern and eastern Arkansas and Missouri, but generally speaking the crop is out. Yields have turned out larger than expected in a number of instances, and in some Arkansas and Mississippi counties the output was close to the high record. Prices during the past thirty days fluctu ated within a narrow range, averaging about the same as during the similar period immediately pre ceding. Demand has been fair, and sufficient to absorb cotton as fast as it came out. W ith the ex ception of cotton received in late December and early this month, the crop as a whole has been of relatively high quality. A s has been the case for the past tw o years, there is still no premium to speak of for staple cotton, and as a result many planters have decided to reduce their plantings of staple cotton this year. Considerable farm work has been done, and in some localities more plowing has been accomplished to date than at the same time last year. Stocks in Arkansas warehouses on January 11 amounted to 295,011 bales, against 291,792 bales on the corresponding date last year. T obacco — Deliveries and sales of tobacco in all markets continued heavy and at high prices from the opening of the market until the close for the holidays. Deliveries were somewhat curtailed, however, when sales were resumed because of cold harsh weather. Prevailing high prices for all types are conducive to rapid marketing and it is expected that the selling season will be a relatively short one. During December, sales of New burley amounted to over 60,700,000 pounds at an average of $30.44 per hundred pounds. Recent sales on the loose-leaf floors have averaged from $1 to $2 per hundred higher than before the holidays. The tobacco, while light in weight, is of good smoking quality and very useful from that standpoint. Late sales of old bur ley in the hogshead market, considering the quality, were at prices higher than for years, all grades selling possibly 100 per cent higher than last August. A strong market continued in all Dark T obacco sections. Manufacturers are active buyers in the Air-cured and Green River markets. A ll grades, particularly lugs and com m on leaf, are in demand at high prices. Sales have not been large since the reopening of the market, but the tobacco was of fair quality with prices for all grades higher. It was estimated that at the middle of January about 70 per cent of the crop had been sold and delivered. In the Dark-fired markets of Clarksville, Springfield, Hopkinsville and the W estern District, cold weather has interfered with deliveries and sales and offer ings, therefore, have been small and of rather in ferior quality, but prices were higher for all grades. Aggressive purchases are being made at grow ers’ barns as well as on the market floors, particularly by snuff interests. Com m odity Prices — Range of prices in the St. Louis market between December 15, 1928 and Janu ary 15, 1929, with closing quotations on the latter date and on January 15, 1928. Close H igh L ow Jan. 15, 1929 Jan. 15, 1928 ...per b u .$ 1 .2 4 ^ $ 1 .1 6 ^ $ 1 .2 2 # $1.31*6 1.2 3 # 1.26 July ................... 1.24ft 1.17 N o. 2 red winter “ 1.47 1.34 $1.40 @ 1.45 $1.51 @ 1 .5 2 “ N o. 2 hard....... 1.21 1 .1 9 # @ 1.21 1.35 @ 1 .3 6 1.12 Corn “ 1.01 .9 2 # @ .93 1 .0 1 # .92*4 “ .94 1.02 1.02 July .................... “ .84 . 9 2 # @ .93 .95 # N o. 2 mixed.... .8 5 # @ .86 “ .96 .85 .95 @ .9 5 # N o. 2 white.... .8 6 # @ .87 Oats “ N o. 2 white.... .54 .47 .51 .57 @ .5 7 # F lour 6.50 Soft patent....... ...per bbl. 8.25 6.75 -3)8.25 6.50 @ 7 .5 0 “ Spring patent.. 5.75 5.95 5.75 @ 5.95 6.60 @ 6 .7 0 .19 M iddling cotton.. ..per lb. .1 8 # •18 n •18H H ogs on h o o f...... 9.50 6.50 6.50 @ 9.15 7.00 @ 8.45 W heat F IN A N C IA L Demand for funds generally through the dis trict continued strong during the past thirty days, and rates remained at the high levels attained dur ing the closing months of last year. In the chief industrial centers there was less than the usual sea sonal recession in requirements of manufacturing and jobbing interests, and the call for financing stocks, bonds and other investments was the heavi est in some time. A t the end of December, the gen eral demand for funds was augmented by prepara tions for meeting January 1 interest and dividend payments. As in the past, however, these disburse ments had no lasting effect on the situation as a whole, amounting largely to a shifting of credits. W hile liquidation by commercial and industrial borrowers was in large volume, and fully up to ex pectations, it was rather spotted in character. Re newals and new borrow ing in certain lines were heavy, in many instances being equal to or larger than loans paid. January 1 settlements with whole salers in the large centers were in the main satisfac tory, and in the country, particularly in the cotton areas, bank loans were substantially reduced. Coun try banks have further cut down their loans with city correspondents and in some sections have been placing their surplus funds in commercial paper and other investments. H eavy marketing of tobacco at relatively high prices has been reflected in good ini tial liquidation of loans based on that commodity. Commitments of the grain and milling interests showed little change as contrasted with the preced ing cities of the district. banks are not included. ♦Dec. 1928 East St. Louis & Natl. Stock Tards, 111..$ 72,385 8,787 El Dorado, A rk ..... Evansville, In d ..... 50,791 F ort Smith, Ark... 16,189 6,242 Greenville, Miss.... 6,153 Helena, A rk ........... Little R ock, Ark.. 99,901 Louisville, K y ........ 232,301 212,122 Memphis, Tenn. Owensboro, K y ..... 8,054 17,997 Pine Bluff, A rk .... 13,387 Quincy, 111.............. St. Louis, M o ........ 928,292 Sedalia, M o ............ 5,085 Springfield, M o .... 16,612 ♦*Texarkana, A rk .-T e x ............. 17,904 ♦Nov. 1928 Loans of the reporting member banks which declined during the last week in December, moved sharply upward during the first tw o weeks of Janu ary, reaching the highest point since early October. Their loans based on stocks and bonds in the second week of this month moved to a point higher than any attained last year. Deposits of the reporting member banks, which declined in late December, advanced in the first tw o weeks of January to the highest level since last April. Borrow ing of all member banks from this institution increased in early December, but subsequent payments brought the total at the middle of January to about the same level of thirty days earlier. Reflecting the return flow of currency follow ing the holidays, the note circulation of this bank declined moderately in the first two weeks of January. A t the St. Louis banks current rates of interest were as follow s: Prime commercial loans 5y2 to 6 per cent; collateral loans, 5y2 to 6y2 per cent; loans secured by warehouse receipts, Sy2 to 6*4 Per cent; Interbank loans, Sy2 to 6 per cent and cattle loans 534 to 6 y2 per cent. $ 65,772 8,586 52,663 14,995 4,358 4,979 92,524 201,523 195,466 6,671 16,342 13,769 858,340 4,911 16,093 15,961 15,708 + 6.4% + 18.1 + 10.9 + 9.4 — 1.6 + 15.3 + 6.0 + 16.2 + 6.7 + 3 5 .7 + 5.9 + 5.5 + 2 2 .7 + 18.3 + 7.9 + 10.1% + 2.3 — 3.6 + 8.0 + 4 3 .2 + 2 3 .6 + 8.0 + 15.3 + 8.5 + 2 0 .7 + 10.1 — 2.8 + 8.1 + 3.5 + 3.2 + 12.2 + 14.0 T otals..........$1,712,202 $1,468,720 $1,572,700 + 16.6% + * In thousands (000 om itted). ♦♦Includes one bank in Texarkana, Texas not in Eighth District. 8.9% Condition of Banks — Loans and discounts of the reporting member banks on Jan. 16, 1929 showed an increase of 0.8 per cent as contrasted with Dec. 19, 1928. Deposits increased 2.0 per cent between Dec. 19, 1928 and Jan. 16, 1929 and on the latter date were 2.7 per cent smaller than on Jan. 18, 1928. Composite statement follow s: *Jan. 16, 1929 ♦Dec. 19, 1928 129 ♦Jan. 18, 1928 30 N um ber of banks reporting............ t29 Loans and discounts (incl. rediscounts) Secured by U . S. G ovt, and $216,413 $216,247 .$245,591 316,425(2) 312,736(1) . 2 87,564(1) $533,155(1) $528,983(1) $532,838(2) Investments 85,129 77,354 82,535 U . S. Gov 115,780 120,432 . 123,006 $200,909 $197,786 $205,541 50,627 45,984 Reserve balance with F . R. bank... 48,130 7,517 9,979 6,708 Cash in vault.............................. Deposits 430,509 409,233 416,557 N et demand deposits.......... 245,935 230,861 240,725 T im e deposits....................... 1,665 6,490 . 2,310 Government deposits.......... $678,109 $646,584 $659,592 l 9,771 27,415 22,366 ♦In thousands (000 om itted). # tD ecrease due to consolidation. These 29 banks are located in St. Louis, Louisville, M emphis, Little R ock , and Evansville, and their total resources, comprise approxim ately 55.5 per cent o f all m ember banks in this district. N O T E : — Certain items in the above table are not comparable b e cause of revision of m ember bank reports. (1 ) figures for “ A ll other loans and discounts” and “ T otal loans and discounts” for Jan. 16, 1929 and D ec. 19, 1928 have been revised to exclude acceptances of other banks and bills of exchange sold with endorsement. (2 ) Figures for “ A ll other loans and discounts” and “ T otal loans and discounts” for Jan. 18, 1928 include acceptances of other banks and bills of exchange sold with en dorsement. Complete details of revision are given on page 6 of the Federal R e serve Bulletin for January. Federal Reserve Operations — During D ecem ber the Federal Reserve Bank of St. Louis dis counted for 189 member banks against 201 in November and 166 in December, 1927. The discount rate remained unchanged at 5 per cent. Changes in the principal assets and liabilities of the institu tion as compared with the preceding month and a year ago appear in the follow ing ta b le: Debits to Individual Accounts — The following table gives the total debits charged by banks to Total bills and securities.. checking accounts, savings accounts, certificates of F. R. N otes in circulation........ deposit accounts and trust accounts of individuals, Ratio of reserve to deposits and F. R. N ote Liabilities... firms, corporations and U. S. Government in lead ♦In thousands (000 om itted). (Compiled January 23, 1929) D ec. 1928 com p, to N ov. 1928 D ec. 1927 ♦Dec. 1927 $ 68,035 7,438 45,818 14,792 6,344 5,335 94,289 199,990 198,846 5,936 16,999 12,689 756,560 4,299 15,389 ing thirty days, and are somewhat higher than the average at this season during the past several years. Charges to accounts of Bills discounted... Bills bought......... U . S. Securities.. ♦Jan. 24, 1928 $13,86? 9,965 34,328 ♦Jan. 24, 1929 ,$39,326 , 8,502 , 21,042 ♦Dec. 24, 1928 $53,161 11,672 21,042 ,$68,870 . 60,152 .. 84,246 $85,875 66,304 85,270 $58,161 53,67? 86,80^ .. 57.6% 49.9% 63.7% 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 P R O D U C T IO N — Output of manufactures decreased in December, but the decline was less than is usual during the month, and the Board’s index was slightly higher than in November, and above the level of a year ago. Smaller than usual seasonal reductions were reported in the daily average output of steel, pig iron, automobiles, copper, cement, silk, and flour, while cotton and wool textiles de clined considerably. Meat packing increased in December, reflecting a larger output of pork products, though beef and mutton production was smaller. Volume of factory employ ment and payrolls was larger than at this season last year. Production of minerals was in somewhat smaller volume in December than in November, reflecting chiefly a large bution at wholesale declined seasonally and was smaller than a year ago. Freight car loadings in December and the first half of January showed a slightly larger than usual seasonal reduc tion, but, as in earlier months, were above a year ago. P R ICE S — The general level of wholesale prices, measured by the index of the United States Bureau of Labor Statistics, remained approximately the same dur ing December as in the preceding month. Average prices of iron and steel, automobiles, copper, and building materials continued to advance slowly, and prices of farm products, after declining during October and November, also rose in December, reflecting higher average prices for raw cot- Index number of production of manufactures and minerals combined, adjusted for seasonal variations (1923 25 a v e ra g e s 100). Latest figure, Decem ber, 112. Federal Reserve B oard’ s index of department store sales (1923-25 aver a g e s 100). Latest figures, D ecem ber: Adjusted, 117; unadjusted, 188. reduction in the output of bituminous and anthracite coal. Production of copper and zinc ore on a daily .average basis was slightly smaller, while petroleum output increased. Preliminary reports for the first half of January indicate a steady increase in the output of petroleum and greater activity in the steel, automobile, coal, and lumber industries following the temporary lull during the inventory period at the end of the year. Building contracts awarded in 37 eastern states declined sharply during December, as in the preceding month, and were smaller than in any December since 1924. The decline ton, oats, rye, and some grades of wheat, offset in part by lower prices for corn and cattle. In the first three weeks of January the price of rubber advanced sharply, and wheat, corn, potatoes, and flour also increased, while silk and sugar decreased somewhat and hides reached the lowest level in more than a year. B A N K C R E D I T — Banking and credit conditions in January were influenced chiefly by the seasonal decline in the volume of money in circulation. At the reserve banks the return flow of currency from circulation resulted in a liquidation of member bank borrowing and small declines in reserve bank holdings of acceptances and of United PER CENT__________ _________________ _________________ _________________ ___________PER CENT 7 MONEY RATES IN NEW YORK ■— —— ... I 1925 awards for residential building and public works and utili ties. By districts, the largest declines over the preceding month were in Cleveland, Chicago, Boston, and Richmond Federal reserve districts, while increases were reported in the New York, Philadelphia, and Atlanta districts. T R A D E — Department store trade showed greater ac tivity in December than in the preceding month, after allow ance is made for the customary holiday increase. Total sales for the month were the largest on record, exceeding Decem ber, 1927 by one per cent, although there was one less trad ing day this year. Increases over a year ago, were reported for the New York and Philadelphia districts, while substan tial decreases occurred in Atlanta and Minneapolis. Distri "T ? Commercial Paper Rah fteserre Bank Discount Rate Acceptance Rate j - M onthly averages of daily figures. Latest figures are averages of first 23 days in January. I I 1926 I__________________________________ 1927 1928 1929 M onthly rates in the open market in N ew Y o r k : com m ercial paper rate on 4-to-6 m onth paper and acceptance rate on 90-day bankers’ accepances. Latest figures are averages of first 24 days in January. States securities. Total bills and securities showed a decline of about $450,000,000 for the period from December 26 tS January 23, and were in about the same volume as in mid summer of last year. At member banks there was an in crease in the total volume of loans at the turn of the year due chiefly to year-end financial settlements, and the tem porary withdrawal of funds loaned by corporations in il -■ New York market. In January, deposits and loans of me ber banks declined to approximately the level of the early part of December. In the money market, rates on call loans declined sharply in January, while rates on time loans on securities remained firm and rates on acceptances advanced.
@FedFRASER