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BUSINESS CONDITIONS
Monthly Review of Agriculture, Industry, Trade and Finance
Released for Publication on Afternoon of January 31, 1939
FEDERAL
RESERVE
BANK
OF
Building of Board of Governors of Federal Reserve System, Washington, £ ). C.
ST * L O U I S
SU M M AR Y OF EIG H TH D ISTR ICT
,
Dec.,
1938 comp, with
Live Stock:
Nov., 1938 Dec., 1937
Receipts at National Stock Yards...... — 10.2%+ 3.7%
Shipments from aforesaid Yards.......... — 7.6 + 2.5
Production and Distribution:
Sales by mfrs. and wholesalers............— 15.1 + 2 7 .5
Department store sales........................ + 56.0 + 3.6
Car loadings......................................... + 2.8 + 4.1
Building and Construction:
Bldg. permits, incl. repairs { £ ^ ? berZ 2 3 . 4 + 2 ^ 2
Value construc. contracts awarded.. . . + 16.0 +116.6
Miscellaneous:
Commercial failures j Lilbufties.'!!! 1+230! 5 — 6 6 ! 6
Consumption of electricity...................— 2.2 + 9.2
Debits to individual accounts..............+ 23.1 + 2.9
, _
,
_
/r\m\
Jan. 11, ’39 comp, with
Member Banks (24):
Dec. 14, *38 Jan. 1 2 , ’38
Gross deposits...................................... + 0.6% + 8.4%
Loans.................................................... — 1.8 — 1.8
Investments.......................................... + 0.8 + 1 8 .4
P W A R D trends in Eighth District com
merce and industry, which had their rise
in July, were extended through December
and have continued during the first half of Janu
ary. The tempo since mid-December has slowed
somewhat, owing mainly to the usual seasonal con
siderations, such as holiday suspensions and inter
ruptions for stock taking, repairs, etc. In a num
ber of important lines the recession in activities
was considerably less than is ordinarily the case,
and markedly less than a year earlier, when effects
of external depressants were being felt. In some
notable instances the expected decline was little
in evidence or entirely absent, and volumes for the
year were greater than during the preceding twelve
months. Taken as a whole, however, recent gains
were not sufficiently large to offset the low levels
obtaining during the first six months, with the
result that in a majority of lines results in 1938
compared unfavorably with 1937.
Notwithstanding the unprecedentedly mild fall
and early winter, which militated against the move
ment of all descriptions of seasonal merchandise,
distribution through retail made a relatively good
showing. While late in starting, holiday trade gen
erally through the district exceeded expectations,
and measured by December statistics volume was
appreciably above a year earlier. Volume of retail
trade for the twelve months was approximately 5
per cent less than in 1937. This decrease con
trasted with a decline of 7.7 per cent during the
first six months of 1938 under the comparable
period a year earlier.
U
With the exception of groceries, all wholesaling
and jobbing lines investigated showed increases in
sales during December as compared with the same
Page 2
month in 1937, gains ranging from 5.9 per cent in
drugs and chemicals to 43.1 per cent for boots and
shoes. Orders booked since January 1 reflect a
continuance of the betterment over a year earlier.
Purchasing is still confined largely to well defined
needs, but there is more of a disposition to replen
ish depleted stocks than heretofore. Reflecting
conservative buying throughout 1938 and increased
business during the last half of that year, the in
ventory position of both wholesalers and retailers
underwent substantial improvement.
As was the case in the country as a whole, the
revival in business during the last half of 1938 was
more marked in production than distribution of
commodities. Output of manufactures rose rap
idly from the low point in May to a new high for
the year in December. In this district a particular
ly favorable showing was made by the iron and
steel industry. Through the first half of Decem
ber, steel ingot production was maintained at 51.5
per cent, the best rate for the year, and comparing
with 20.5 per cent for the same time in 1937.
The volume of retail trade in December, as
gauged by department store sales in the leading
cities, was 56.0 per cent greater than in Novem
ber and 3.6 per cent more than in December,
1937; for the year 1938 the total was 4.7 per cent
smaller than in 1937. Combined sales of all whole
saling and jobbing firms in December were 15.1
per cent smaller than in November and more than
one fourth greater than in December, 1937; aggre
gate sales of these interests in 1938 fell 4.2 per
cent below those of the preceding twelve months.
The value of permits issued for new construc
tion in the principal cities in December was 26.4
per cent less than in November, but one third
larger than in December, 1937; for the year the
total was smaller by 5 per cent than in 1937. Con
struction contracts let in the Eighth District in
December were 16 per cent and 116.6 per cent
greater, respectively, than a month and a year
earlier, and for the year volume exceeded that of
1937 by 18.4 per cent.
Commercial failures in the Eighth District in
December, according to Dun and Bradstreet, num
bered 33, involving liabilities of $499,000, which
compares with 29 defaults with liabilities of
$151,000 in November and 34 failures for a total
of $1,496,000 in December, 1937. In 1938 there
were 499 failures with total liabilities of $6,401,000,
as against 285 defaults involving $4,940,000 liabili
ties in 1937.
DETAILED SURVEY OF DISTRICT
MANUFACTURING AND WHOLESALING
Net Sales
Stocks
Lines of
December, 1938
*12 months 1938 Dec. 31,1938
compared with
Commodities
comp, with same comp, with
Nov., ’38 Dec. ’37
period 1937
Dec. 31,1937
Boots and Shoes.......... —22.6% +43.1%
+ 6.1%
-1 9 .1 %
Drugs and Chemicals.. +19.6
+ 5.9
— 3.5
— 4.5
Dry Goods................... —31.3
+19.2
—10.1
—13.2
Electrical Supplies___ +30.1
+11.8
—18.6
—22.0
Furniture...................... — 9.2
+27.4
—26.2
—30.4
Groceries...................... — 2.2
— 1.5
—11.4
— 4.7
Hardware..................... — 0.3
+20.6
—12.8
+ 4.2
All above lines...... —15.1
+27.5
— 4.2
— 8.8
•Cumulative percentages for identical firms reporting through the entire period.
Following trends in general business activity,
sales of wholesaling and jobbing firms whose statis
tics are available to this bank, improved markedly
during the last half of 1938 as compared with the
first six months. While total sales for the year,
as shown in the above table, were 4.2 per cent
smaller than in 1937, the decline was considerably
narrowed as contrasted with the first six months,
when the cumulative total was 16.6 per cent below
that of the comparable period a year earlier.
Declines in sales from November to December
were for the most part seasonal in character, but
in the case of boots and shoes, hardware, and dry
goods, were somewhat smaller than average during
the past decade. The irregular recession in inven
tories which marked earlier months of the year
was extended during December in all lines other
than hardware. Production of boots and shoes
at district factories has turned moderately upward
since the last week of November.
Automobiles— Combined passenger car, truck
and taxicab production in the United States in De
cember totaled 388,346, against 372,358 in Novem
ber and 326,234 in December, 1937. In 1938 pro
duction amounted to 2,489,555, which compares
with 4,809,515 in 1937 and 4,454,115 in 1936.
Iron and Steel Products— The slowing down in
activities which ordinarily marks the iron and steel
industry in this area during the closing weeks of De
cember and early January, incident to the holiday
and inventorying periods, was considerably less in
evidence than during the ,past several years. Vir
tually all sections of the industry offered strong
resistance to the seasonal trend, and in some in
stances schedules were maintained at, or close to,
the highest point of the year. In December ship
ments of pig iron to district melters were slightly
above November and the highest for the year. Steel
mills closed the year with substantial backlogs of
unfinished orders.
At mid-January ingot production at district
mills was at 40 per cent of capacity, which com
pares with 21 per cent at the corresponding time in
1938. Operations at gray iron foundries were well
sustained, averaging from four to five days per
week. Activities at structural steel fabricating
plants declined five points from 35 per cent to 30
per cent of capacity. Following the usual prac
tice, stove plants closed in late December for
inventorying, repairs, etc.
For the entire country production of pig iron in
December, according to the magazine “ Steel” ,
totaled 2,212,718 tons, against 2,286,661 tons in No
vember and 1,503,474 tons in December, 1937. Out
put of 18,889,663 tons in 1938 was the smallest since
1934, and compares with 36,709,139 tons in 1937.
Steel ingot production in the United States in De
cember amounted to 3,143,169 tons, against 3,572,220 tons in November and 1,473,021 tons in Decem
ber, 1937. Total production in 1938 was only
27,839,261 tons, 56.2 per cent of the 49,502,907 tons
made in 1937, and the smallest since 1934.
MINING AND O IL
Coal— Despite the unprecedentedly mild fall and
early winter, the coal industry in this area under
went moderate improvement toward the end of the
year. Reduced tonnages for heating purposes were
partly offset by better industrial demand. At many
mines inventories were lowered in December, and
operations were at the best rate for the year.
Production of bituminous coal in the United
States in December, according to the National
Bituminous Coal Commission, totaled 36,230,000
tons, against 36,110,000 tons in November and
37.122.000 tons in December, 1937. In 1938 there
were 342,407,000 tons lifted, which compares with
442.455.000 tons in 1937 and 431,950,000 tons in
1936. At mines in this area December output was
15.8 per cent greater than in November and 8.2
per cent smaller than in December, 1937. Produc
tion at these mines in 1938 fell 18 per cent below
that of the preceding year.
Illinois mines produced 4,562,573 tons in Decem
ber, as against 3,976,278 tons in November and
5,221,852 tons in December, 1937. There were 116
mines in operation in December with 31,165 men
on payrolls, against 113 active mines and 30,913
operatives in November.
Petroleum— November output of crude oil in
states of the Eighth District was 2.6 per cent
greater than in October and 84.8 per cent more than
in November, 1937. Cumulative total for eleven
months of 1938 exceeded that of the like period
in 1937 by 88.1 per cent. Stocks on December 1
were 1.2 per cent smaller and 4.0 per cent greater,
Page 3
respectively, than a month and a year earlier.
Detailed production and stocks by states are given
in the following table:
(In thousands
of barrels)
Production
----------------------------------- Cumulative
Nov., Oct.,
Nov., --------------------1938
1938
1937
1938
1937
Arkansas................
Illinois...................
Indiana..................
Kentucky..............
1,470
3,067
83
514
Totals.................
5,134
1,624
2,768
86
526
5,004
1,286
990
66
436
2,778
16,521
19,948
881
5,298
42,648
10,448
6,414
769
5,047
22,678
Stocks
--------------------Nov.,
Nov.,
1938
1937
2,291
11,311
3,198
1,147
2,792
10,747
2,823
888
17,947
17,250
R E TA IL TRADE
Department Stores— The trend of retail trade in
the Eighth District, as reflected in statistics of de
partment stores in the principal cities which report
to this bank, is shown in the following comparative
statement:
Stocks
on Hand
Net Sales
December, 1938
12 mos. 1938 Dec. 31, 1938
comp, with
compared with
to same
Nov., 1938 Dec., 1937 period 1937 Dec. 31,1937
- 4.2%
Ft. Smith, Ark....... +49.8^
+ 3.5% ' + 0.3%
Little Rock, Ark__ +46.7
—12.9
+ 9.0
— 2.3
Louisville, K y .........+85.2
— 8.2
+ 2.6
— 9.9
Memphis, Tenn....... +66.8
—11.4
+ 4.7
— 2.5
+24.2
—16.5
Pine Bluff, Ark....... +74.4
— 5.1
—20.6
Quincy, 111............... +69.9
+ 2.5
— 5.6
St. Louis, Mo.......... +49.6
—10.7
+ 2.4
— 4.8
Springfield, Mo....... +42.8
—18.9
+10.7
+ 0.3
All Other Cities___ +59.7
— 0.3
— 5.6
+15.1
8th F. R. District... +56.0
— 4.7
—10.9
+ 3.6
Stock
Turnover
Jan. 1, to
Dec. 31,
1938 1937
3.03
3.25
4.15
3.49
2.78
2.92
4.24
3.33
2.68 2.57
3.40 3.32
4.36 4.08
3.16 2.68
3.30 2.86
4.04 3.81
Percentage of accounts and notes receivable out
standing December 1, 1938, collected during De
cember, by cities:
Installment
Accounts
Fort Smith............%
Little Rock , ... 19.0
Louisville.. , .... 13.1
Memphis, . ,. ... 31.8
Pine Bluff...
Excl. Inst’l
Accounts
42.2%
39.3
54.0
47.5
41.7
Installment Excl. Inst’ ]
Accounts
Accounts
55.0%
Quincy......................... %
58.2
St. Louis..............21.9
27.2
Springfield...................
Other Cities........ 12.2
65.6
53.1
8th F. R. District 21.1
Specialty Stores— December results in men’s fur
nishings and boot and shoe lines are shown in the
following table:
Stocks
Stock
on Hand
Turnover
Net Sales
December, 1938
12 mos. 1938 Dec. 31,1938 Jan. 1, to
compared with
to same
comp, with Dec. 31,
Nov., 1938 Dec., 1937 period 1937 Dec. 31, 1937 1938 1937
-15.2%
2.61 2.68
-1 1 7 %
Men’s Furnishings....... +52.7%
+ 3.2%
7.37 6 75
—11.5
— 0.8
+ 5.0
Boots and Shoes......... +43.0
Percentage of accounts and notes receivable out
standing December 1, 1938, collected during De
cember :
Men's Furnishings........................34.3%
Boots and Shoes........................... 37.2%
TR A N SPO R TA TIO N
The St. Louis Terminal Railway Association,
which handles interchanges for 28 connecting lines,
interchanged 78,358 loads in December, against
76,188 loads in November and 75,273 loads in De
cember, 1937. During the first nine days of Janu
ary the interchange amounted to 21,376 loads,
which compares with 23,159 loads for the same
period in December and 20,832 loads during the
first nine days of January, 1938. In 1938 the Asso
Page 4
ciation interchanged 904,081 loads, a decrease of
18.5 per cent and 15.3 per cent, respectively, as
compared with a year and two years earlier. Pas
senger traffic of the reporting lines during Decem
ber continued the steady declines which marked
earlier months of the year. For the twelve months
there was a decrease of 8.39 per cent in the num
ber of passengers carried and 8.73 per cent in
revenue as compared with the preceding year.
For the entire country, loadings of revenue
freight in 1938 totaled 30,468,544 cars, the smallest
since 1933, and comparing with 37,670,464 cars in
1937 and 36,109,112 cars in 1936. In the compari
son with 1937, decreases were recorded in all clas
sifications other than grain and grain products.
Estimated tonnage of the Federal Barge Line be
tween St. Louis and New Orleans in December
was 172,400 tons, against 214,948 tons in Novem
ber and 159,680 tons in December, 1937. In 1938
the Federal Barge Line handled 2,410,099 tons, the
largest in its history, and comparing with 1,831,813
tons in 1937.
W H ISK E Y
There appears to be no change in the orderly
production of bourbon whiskey by the 36 operat
ing distilleries out of a total of 63 in Kentucky.
While warehouses are heavily stocked, a moderate
improvement in inventory position is noted. Job
bers report holiday sales above expectations, but
at irregular prices. Whiskey sales in Kentucky
during 1938 were slightly less than in 1937. W ith
drawals from Kentucky warehouses, however., con
tinue to be heavy; 17 per cent greater in 1938 than
during the preceding year. This is construed in
some quarters as indicating increasing popularity
of bourbon throughout the country over other
types of whiskey and hard liquors. There is a
more optimistic feeling in the trade relative to bulk
whiskey, in which there has been some price im
provement during the past three months.
AGRICULTURE
Combined receipts from the sale of principal
farm products and Government payments to farm
ers in states including the Eighth District during
the period January-November, 1936, 1937, and 1938,
and during November, 1937 and 1938, are given in
the following table:
November
of dollars)
1938
1937
Cumulative for 11 months
1938
1937
1936
... $ 20,824 $ 21,489
.,.
36,582
36,288
. . 26,480
23,678
5,690
. .
5,888
12,738
12,228
21,579
20,548
21,941
20,375
$ 239,552 $ 266,009 $ 241,391
406,451
439,257
408,713
227,135
251,194
234,802
129,138
130,222
92,033
112,837
115,940
92,867
140,763
145,227
136,212
128,878
122,508
100,411
. ,. $143,956 $142,372
$1,384,754 $1,470,357 $1,306,429
Farming Conditions— Taken as a whole, weather
conditions in the Eighth District during the past
thirty days were the most normal for the season to
date, following one of the mildest falls of record.
In the main, conditions were favorable for growth
of fall sown grains, livestock and farm operations
of all descriptions. Routine work in all sections of
the area is considerably in advance of the seasonal
schedule. Quite generally, but more particularly
in the South, more land has been plowed for next
spring’s plantings than is ordinarily the case at
mid-January.
The trend of prices continued lower, and through
out the thirty-day period was measurably below
those prevailing at the same time during the pre
ceding three or four years. As of January 14, the
farm products group of the Bureau of Labor Sta
tistics index stood at 67.3 per cent of the 1926
average, as against 67.4 per cent on December 17;
73.4 per cent on January 15, 1938; 92.3 per cent on
January 16, 1937; 78.1 per cent on January 18, 1936,
and 76.7 per cent on January 19, 1935. Owing to
the low level of prices prevailing during the past
season and a general disposition on the part of
farmers to await clarification of the Government’s
agricultural program, more than the usual uncer
tainty exists relative to intentions of farmers to
plant the several crops next spring.
Corn— Stocks of corn held on farms in states
including the Eighth District on January 1 were
estimated by the U. S. Department of Agriculture
at 679,103,000 bushels, which compares with
716.127.000 bushels a year earlier and the 10-year
(1928-1937) average of 474,303,000 bushels. Despite
the unusually mild fall and winter, the quality of
corn held in storage is generally high.
Cotton— The 1938 cotton crop in the Eighth Dis
trict is estimated by the U. S. Department of Agri
culture to be 3,384,000 bales, which compares with
4.891.000 bales harvested in 1937 and the 15-year
(1923-1937) average of 2,893,000 bales. The season
for picking cotton was the most favorable in recent
years, and practically the entire crop had been
taken out of the fields by December 1, with a mini
mum of damage to quality and quantity. The
open winter has permitted almost uninterrupted
field work, and more ground has been prepared for
planting the next crop than has been the case in
more than a decade. From the beginning of the
marketing season the crop has moved rapidly to
gins, with a considerable volume of the staple
going into the Government loan, particularly in
Arkansas, Mississippi and Missouri. Through
January 5 the Commodity Credit Corporation re
ported that from all states 3,810,000 bales from the
1938 crop were pledged on Government loans.
Total Government loan stocks as of that date were
reported at about 10,800,000 bales.
Demand for raw cotton, both for domestic con
sumption and export remained relatively quiet,
with price fluctuations narrow. In the St. Louis
market the middling grade ranged from 8.12$ to
8.90$ per pound between December 15, 1938, and
January 16, 1939, closing at 8.90$ on the latest date,
which compares with 8.18$ on December 15, and
8.65$ on January 15, 1938. At Arkansas and Mis
souri compresses from August 1, 1938, to January
13, 1939, combined receipts were 1,526,244 bales,
against 1,864,591 bales for the corresponding period
a year earlier. Stocks on hand as of January 13
totaled 1,678,656 bales, against 1,088,799 bales on
the corresponding date in 1938.
Livestock—The condition of livestock generally
throughout the district during the past thirty days
is reported to have maintained the high average
which marked the fall and early winter. Market
ing has been on an extensive scale, combined re
ceipts of cattle, swine and sheep in December show
ing a measurable increase over a year earlier,
though a decrease of about 10 per cent under the
November total.
Receipts and shipments at St. Louis as reported
by the National Stock Yards were as follows:
Receipts
Dec.,
1938
Nov.,
1938
Shipments
Dec.,
1937
Dec.,
1938
Dec.,
1937
Nov.,
1938
92,315 126,838 104,406
252,825 246,378 223,373
2,349
2,174
2,160
Horses and Mules..........
..58,955 77,403 62,143
63,007 86,476 71,630
143,034 132,372 136,512
2,304
2,219
2,143
17,883 23,605 10,162
406,444 452,793 392,082
226,067 244,672 220,608
Cattle and Calves.........
The following table shows comparative receipts
and shipments for the years 1938, 1937 and 1936.
Shipments
Receipts
1936
(In thousands)
1938
1937
1936
1938 4 S 1937
Cattle and Calves.........
1,403
2,412
40
988
1,589
2,265
52
1,050
1,483
2,474
62
709
893
1,435
39
330
995
1,308
52
382
826
1,514
62
137
4,843
4,956
4,728
2,697
2,737
2,539
Horses and Mules..........
Tobacco— On January 3, following the holiday
recess, the burley auction markets resumed with
liberal offerings. Sales the first day totaled
8,127,000 pounds, with an average of $19.75, a gain
of 87$ per cwt. over the last sales on December 22.
Since the reopening there has been a decline in the
average price to $18.98 owing to increased pro
portion of inferior leaf offered. Good to fine grades
are selling cheaper than a year ago, while common
to medium grades are much higher. At midJanuary it was estimated that about two-thirds of
the burley crop had been sold.
Page 5
About 50 per cent of the Green River and stem
ming crops has been marketed, the major portion
being taken by domestic manufacturers. Prices
averaged from $10 to $10.41 per cwt. Only a small
percentage of the fire-cured crop has been taken
down. The market at Hopkinsville, Ky., opened
January 11, with sales of 116,384 pounds at an
average of $7.93, about $2 per cwt. lower than the
opening in 1938. The lower prices may reflect
inferior quality, as well as lack of interest shown
by snuff manufacturers. There is a scarcity of
heavy leaf and tobacco suitable for heavy wrap
pers and spinners.
In the western district the Murray and Paducah
markets opened on January 16, with the Mayfield
market opening on January 17. In the air-cured
and one-sucker districts to mid-January, approxi
mately 6,250,000 pounds had been disposed of at
an average price of about $6.50 per cwt. Under
favorable weather conditions, sales at these mar
kets are expected to be fairly large during the next
few weeks.
Winter Wheat—The U. S. Department of Agri
culture estimates the combined areas of wheat
seeded last fall in states including the Eighth Dis
trict at 6,325,000 acres, a decrease of 22 per cent
from the 8,106,000 acres seeded in the fall of 1937
and comparing with the 10-year (1926-1935)
average of 6,553,000 acres. Stocks of wheat on
farms in these states as of January 1 were esti
mated at 25,911,000 bushels, as against 28,502,000
bushels a year earlier and the 10-year (1928-1937)
average of 21,123,000 bushels. The condition of
winter wheat on December 1 was below average in
all district states, but since that date has under
gone betterment under more favorable moisture
conditions.
COM M ODITY PRICES
Range of prices in the St. Louis market between
December 15, 1938, and January 16, 1939, with
closing quotations on the latter date and on Janu
ary 15, 1938, follow s:
Close
High
Low
Wheat
$ .63
*May.................... perbu...
.62%
.67^
♦July.....................
“
.68X .64%
■
♦Sept....................
No. 2 red winter.
*
•75H
.69H
•
74K .69
No. 2 hard *
*
Corn
.50*6 .48
♦May....................
“
.48%
.51%
*
*July....................
.50^
♦Sept....................
a
“
No. 2 mixed.......
•51H
.56
No. 2 white........
“
■52H
Oats
.27%
♦May....................
*
.26
*July....................
•
.26%
♦Sept....................
*
.34
.31
No. 2 white........
*
Flour
3.85
Soft patent......... per b b l.. 5.35
5.55
5.15
Spring u .........
“
.0890
.0812
Middling Cotton, .per l b ...
7.12
Hogs on Hoof...... per cw t... 8.00
♦Nominal quotations.
Page 6
PO STAL RECEIPTS
Returns from the five largest cities of the dis
trict show an increase of 23.5 per cent in combined
postal receipts for the final quarter of 1938 over
the preceding three months, and an increase of
1.1 per cent as contrasted with the last quarter of
1937. Detailed figures follow :
Comp, last Qtrs.
1938 and 1937
Dec. 31,
1938
Sept. 30,
1938
Dec. 31,
1937
Evansville........................$ 189,998
Little R ock..................... 243,070
L o u is v ille ................... 796,254
Memphis.......................... 847,158
St. Louis.......................... 3,032,588
$151,988
219,883
658,114
624,890
2,482,005
$185,811
228,463
818,576
821,128
2,997,663
Quarter ending
Totals........................... 5,108,268
4,136,880
+
+
—
+
1.8%
6.4
2.7
3.2
+ 1.2
+ 1.1
5,051,641
The following table shows the comparative totals
for the years 1938, 1937 and 1936:
T o t a ls .
1938 comp, with
1937
1936
1938
1937
1936
.$17,839,376
$17,739,649
$17,385,578
+ 0.6%
+ 2.6%
BUILDING
The dollar value of permits issued for new con
struction in the five largest cities of the district in
December was 26.4 per cent less than in November
and 33.6 per cent greater than in December, 1937.
According to statistics compiled by the F. W .
Dodge Corporation, construction contracts let in
the Eighth District in December amounted to
$27,458,000, which compares with $23,665,000 in
November and $12,676,300 in December, 1937.
For the year, construction contracts totaled
$208,735,000, as against $176,321,600 for 1937.
Building figures for December follow :
New Construction
Permits
1937
1938
(Cost in
thousands)
4
10
42
133
189
1
17
45
91
84
Dec. Totals. .. 378
Nov.
* .,.. 622
Oct.
* .,.. 679
Year
“ . ..6,865
238
481
678
7,194
Little R ock ...
1938
Repairs, etc.
Cost
1937
Permits
1937
1938
Cost
1937
1938
$
11
24
90
212
1,161
$ 208
52
309
181
371
35
53
23
103
118
47
62
23
113
78
$ 23
16
87
52
165
$ 38
17
23
462
106
1,498
2,035
1,525
17,309
1,121
828
1,195
18,245
332
394
523
6,567
323
513
642
8,023
343
367
586
5,086
646
309
359
7,188
CONSUMPTION OF E LE C TR IC ITY
:8ft
Public utilities companies in six large cities of
the district report consumption of electric current
by selected industrial customers in December as
being 2.2 per cent less than in November and 9.2
per cent greater than in December, 1937. Total
consumption in 1938 was 9.8 per cent less than in
1937. Detailed figures follow :
.60%
(K . W. H.
In thous.)
.28^
.27^
.26^
.33^
.33%
.31%
.B1H
.36
Little Rock
4.00 @ 5.35
5.25 @ 5.55
.0890
7.58
5.00 @ 5.25
6.45 @ 6.80
.0865
8.21
Jan. 16,1939
$
•65J4 $
.65%
.66%
.72
.72
.49X
■50X
.51
.52
.52^
Jan. 15,1938
.98ys
1.06
1.07
•61H
No. of Dec.,
Custom
1938
ers K.W.H.
Nov.,
1938
K.W.H.
Dec.,
1937
K.W.H.
December, 1938
compared with
Nov., 1938 Dec.,1937
. 40
... 35
. . . . 82
. . . . 31
. . . . 20
,209
2,922
1,918
7,937
2,404
1,035
22,542
2,562
2,027
8,398
2,192
1,166
23,267
3,049
1,931
8,051
2,338
974
19,145
+14.1%
— 5.4
— 5.5
+ 9.7
—11.2
— 3.1
- 4.2%
— 0.7
— 1.4
+ 2.8
+ 6.3
+17.7
....417
38,758
39,612
35,488
— 2.2
+ 9.2
BANKING AND FINANCE
Except where influenced by the usual seasonal
factors, trends in the banking and financial status
in the Eighth District during the past thirty days
underwent no changes worthy of note as contrasted
with trends during the similar period immediately
preceding and the past several monhs. There was
a moderate recession in demand for credit from
commercial and industrial sources from the high
point at mid-December, and since January 1 liqui
dation with banks in the principal cities has been
in excess of new borrowings and renewals. Par
tially offsetting the recession in mercantile and
manufacturing requirements has been a noticeable
expansion in borrowing by finance companies, and
in some sections increased demands of individuals
for repairs on homes and personal uses.
Rapid marketing of the 1938 tobacco crop has
resulted in a considerable volume of liquidation by
producers, both with merchants and country banks.
Similar conditions are reported in the typical cot
ton producing areas. Quite generally through the
district, but more particularly in Illinois and Mis
souri, inquiries for funds to condition livestock for
market are in considerable volume.
Member Banks— Loans and investments of re
porting member banks in the principal cities de
clined slightly between December 14 and January
11, and on the latter date the total was 8.5 per cent
greater than on the corresponding date a year
earlier. The decrease in the month-to-month com
parison was caused entirely by smaller loans, in
vestments showing a slight increase. Deposits con
tinued the irregularly upward trend which began
last summer, and with the exception of November
16, were the highest of record on January 11.
Statement of the principal resource and liability
items of the reporting member banks follows:
(In thousands of dollars)
Jan. 11,
1939
Dec. 14,
1938
Jan. 12,
1938
Loans—total...................................... ......................$312,607 $318,241
$318,242
Commercial, industrial, and agricultural*........... 189,709
193,874
197,326
Open market paper...................................... ..........
3,284
3,003
9,882
Loans to brokers and dealers................................
6,607
6,101
4,587
Other loans to purchase or carry securities.......-.. 12,962
12,951
12,595
Real Estate loans................................................... 48,178
48,339
46,782
Loans to banks.......................................................
7,297
7,675
7,325
Other loans*......................... ................................. 44,570
46,298
39,745
Investments—total...................................................... 390,782
387,717
329,969
U. S. G ov’t obligations......................................... 231,513
226,563
191,616
Obligations guaranteed by XJ. S. Gov’t .............. 58,101
60,762
45,352
Other securities...................................................... 101,168
100,392
93,001
Gross deposits........................................................... 986,438
980,167
910,305
Demand deposits................................................... 794,296
789,410
720,039
Time deposits........................................................ 192,142
190,757
190,266
Borrowings...................................................................................................................
•Including both loans “ on securities” and “ otherwise secured and unsecured” .
Above figures are for 24 member banks in St. Louis,' Louisville,
Memphis,
Little Rock and Evansville. Their resources comprise approximately 62.0% of the
resources of all member banks in this district.
Aggregate amount of savings deposits held by
selected member banks on January 4 was 1.0 per
cent greater than on December 7 and 2.5 per cent
more than on January 5, 1938.
Changes in interest rates were negligible. At
downtown St. Louis banks rates charged as of the
week ended January 14 were as follows: Customers'
prime commmercial paper, 1y% to 5 per cent; col
lateral loans, 2 to 6 per cent; loans secured by
warehouse receipts, 1 to 5% per cent; interbank
loans, 2 to 5 per cent; cattle loans, 4 to 6 per cent.
Federal Reserve Operations—The volume of the
major operations of the Federal Reserve Bank of
St. Louis (including its Louisville, Memphis and
Little Rock branches), during December, 1938, is
indicated by the following figures:
Checks (cash items) handled..................... .............
Collections (non-cash items) handled......................
Transfers of funds......................................................
Currency and coin received and counted.................
Rediscounts, advances and commitments............. .
New issues, redemptions, and exchanges of securi
ties as fiscal agent of U. S. Govt., etc.................
Bills and securities in custody—coupons clipped —
Pieces
Amounts
6,691,502
236,396
5,612
21,777,530
26
$1,225,467,959
40,224,999
315,365,649
41,381,732
2,273,599
41,211
3,065
97,337,213
Changes in the principal assets and liabilities of
this bank appear in the following table:
(In thousands of dollars)
Other advances and rediscounts...........
Bills bought (including participations).
Jan. 19,
1939
Dec. 19,
1938
Jan. 19,
1938
$
$
$
24
78
2
119,823
59
342
2
106,791
235
57
2
114,478
119,927
107,194
114,772
339,646
275,089
179,960
337,573
255,334
184,066
298,191
228,667
178,351
Industrial commitments under Sec. 13b.
441
525
326
Ratio of reserve to deposit
and F. R. Note liabilities....................
74.6%
Total earning assets.....................................
73.3%
76.8
Following are the rates of this bank for accom
modations under the Federal Reserve Act:
(1) Rediscounts and advances to member banks, under
70 per annum
Sections 13 and 13a.............................................................
70 per annum
(2) Advances to member banks, under Section 10b.......... .......
(3) Rediscounts, purchases, and advances to member banks,
nonmember banks and other financing institutions
under Section 13b:
..............................
(a) On portion for which such institution is obligated.......3>$% per annum
(b) On remaining portion..................................................... 4 % per annum
(4) Commitments not exceeding six months to member
banks, nonmember banks and other financing institu
tions, to rediscount, purchase, or make advances,
& flat.
under Section 13b.......... ....................... ...................... .*;•*/*
(5) Advances to established industrial or commercial I 4 J & to
businesses, under Section 13b..................................------- I 5J# 10 per annum
(6) Advances to individuals, firms and corporations,
including nonmember banks, secured by direct obligations of United States under Section 13................................ 4 % per annum
Debits to Individual Accounts—The following
comparative table of debits to individual accounts
reflects spending trends in this district:
(In thousands
of dollars)
East St. Louis and Nat’l
Stock Yards, 111....* 36,147
El Dorado, Ark.........
6,204
Evansville, Ind.......... 31,995
Fort Smith, Ark....... 13,883
Greenville, Miss.........
5,432
Helena, Ark...............
2,457
Little Rock, Ark........ 39,631
Louisville, K y ............ 183,540
Memphis, Tenn.......... 138,466
Owensboro, K y ..........
8,749
Pine Bluff, Ark.......... 10,780
Quincy, 111..................
8,704
St. Louis, Mo............. 659,539
Sedalia, Mo................
2,438
Springfield, Mo.......... 14,018
Texarkana, Ark.-Tex.. 8,771
Totals.................. *1,170,754
(Completed January 23,1939)
Dec.,
1937
Nov.,
1938
Dec.,
1938
$
34,008
5,428
26,314
12,222
5,807
2,565
34,524
145,791
127,356
6,621
8,957
7,829
512,200
1,808
12,831
6,544
* 950,805
$
Dec., 1938 comp, with
Nov.,1938 Dec.,1937
+ 6.39
+14.3
+21.6
+ 5.4%
34,285
5,820
32,862
13,682
6,258
2,533
38,364
176,187
140,385
7,021
10,613
8,366
636,440
2,337
13,740
8,422
+13.6
— 6.5
— 4.2
+14.8
+25.9
+ 8.7
+32.1
+20.4
+11.2
+28.8
+34.8
+ 9.3
+34.0
+ 1.5
—13.2
— 3.0
+ 3.3
+ 4.2
— 1.3
+24.6
+ 1.6
+ 4.0
+ 3.6
+ 4.3
*1,137,315
+23.1
+ 2.9
+ 6.6
—
2 .6
+ 2.0
+ 4.1
Page 7
NATIONAL SUM M ARY OF BUSINESS CONDITIONS
B Y B OARD OF GOVERNORS OF FE D E RA L R E SERVE SYSTEM
INDUSTRIAL PRODUCTION
Index of physical volume of production, adjusted for seasonal
variation, 1923-1925 average = 100. By months, January, 1934,
to December, 1938. Latest figure 104.
FACTORY EMPLOYMENT
Volume of industrial production declined seasonally in December
and showed little change » the first three weoks of January, when
an increase is usual. Wholesale commodity prices were steady.
Employment and payrolls increased further in December, and retail
sales showed more than the usual seasonal rise.
Production—In December, volume of industrial production de
clined by about the usual seasonal amount and the Board’s adjusted
index was at 104 per cent of the 1923-1925 average, about the level
reached in November following an exceptionally rapid advance after
the middle of the year. Changes in output in most lines in Decem
ber were largely seasonal. In the steel industry, however, produc
tion showed a greater than seasonal decline, and averaged 54 per cent
of capacity in December as compared with 61 per cent in Novem
ber. Lumber production showed little change from November to
December, although usually there is a decline, and at textile mills
and shoe factories activity declined less than seasonally. At meat
packing establishments there was a reduction in output.
Automobile production increased somewhat further in December.
In the fourth quarter of 1938 production and sales of the new
model cars were in about the same volume as in 1937. Dealers'
stocks of new cars increased seasonally in this period, but at the
year end were much below the high level of a year earlier.
Value of construction contract awards increased considerably from
November to December, according to F. W. Dodge Corporation
figures for 37 eastern states. The increase reflected principally a
further rise in contracts awarded for Public Works Administration
projects, which accounted for most of the sharp increase in awards
that occurred in the last half of 1938. Contracts for private resi
dential building decreased less than seasonally in December, while
other private construction showed little change and remained at a
low level.
Index of number employed, adjusted for seasonal variation, 19231925 average = 100. By months, January, 1934, to December, 1938.
Latest figure 91.4.
WHOLESALE PRICES
Employment— Employment and payrolls rose further between the
middle of November and the middle of December. In most manu
facturing lines the number employed continued to increase, when
allowance is made for the usual seasonal changes, and in the auto
mobile and machinery industries the rise was considerable. Em
ployment and payrolls in trade increased more than is usual in the
holiday season and in the construction industry employment showed
much less than the usual seasonal decline.
Distribution—Distribution of commodities increased more than
seasonally in December. Sales at department stores showed the
usual sharp expansion prior to Christmas and sales at variety stores
and mail order sales showed a more than seasonal rise. Freightcar loadings declined seasonally from November to December, reflect
ing largely the customary decrease at this time of year in ship
ments of miscellaneous freight.
Index compiled by United States Bureau of Labor Statistics, 1926
= 100. By weeks, 1034 to week ending January 14, 1939. Latest
figure 76.8.
EXCESS RESERVES OF MEMBER BANKS
Wednesday figures of estimated excess reserves for all member
banks and for selected New York City banks, January 3, 1934,
to January 18,1939.
Page 8
Bank Credit—As the result of the post-holiday return of money
from circulation, together with Treasury disbursements from its bal
ances with the Reserve banks and gold imports, excess reserves of
member banks increased nearly $600,000,000 in the four weeks ending
January 18 to a new high level of $3,560,000,000. A large part of the
increase occurred at New York City banks. Total loans and invest
ments of reporting member banks in 101 leading cities, which in
creased substantially in the first three weeks of December, declined
in the following four weeks. There was some decline in loans and
a reduction in holdings of United States Government obligations,
reflecting in part distribution to the public of new securities pur
chased by banks in December. Deposits declined somewhat in the
latter part of December but increased in January.
Money Rates and Bond Yields—Average yields on United States
Government securities declined slightly in December and the first
three weeks of January. For three consecutive weeks the entire
new issue of 91-day Treasury bills sold on or slightly above a no
yield basis. Commercial paper rates declined slightly in January
while other open-market money rates continued unchanged.
@FedFRASER