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BUSINESS CONDITIONS
,
Monthly Review of Agriculture Industry, Trade and Finance
Released for Publication on Afternoon of January 31, 1940
FEDERAL
RESERVE
BANK
OF
Burley loose-leaf tobacco on the floor of a warehouse near Louisville, Ky.
ST.
LOUIS
SUMMARY OF EIGHTH DISTRICT
D ec., 1939 comp, w ith
N ov., 1939 D ec., 1938
Live Stock:
Receipts at National Stock Yards---- , .. + 2.1%+ 5.0%
6.5 — 3.0
Shipments from aforesaid Yards---Production and Distribution:
— 7.2 + 4.9
Sales by mfrs. and wholesalers........
4- 52.6 + 4.6
Department store sales.........................
— 2.9 + 7.6
Car loadings...........................................
Building and Construction:
tiij
i
CNumber. . . . — 32.0 + 12.1
Bldg. permits, mcl. repairs < ^ ^
... — 7.1 + 14.8
Value construction contracts awarded. ...+ 622.3 +381.3
Miscellaneous:
+ 26.7 + 15.2
Commercial fa.lures { Liab;iities
— 17.2 — 21.6
Consumption; of electricity..................
4.1 + 11.8
Debits to individual accounts..............
+ 16.0 + 10.2
+ 7.2 — 34.3
Life Insurance Sales............................
Tan. 17. ’40 como. with
Member Banks (24):
Dec. 20, ’39 Jan. 18, ’39
, . . + 0.5%+ 12.2%
Gross deposits..................................
Loans............................................... ; . . . . . .— 2.0 + 7.7
Investments............................................. ,
3.8 — 7.6
G
E N E R A L business in the E ighth D istrict
during December carried further forw ard the
notable im provem ent which began last sum
mer. A fter allow ing for the custom ary seasonal
changes, industrial activity reached the highest
level in recent years. In virtually all the principal
lines, production showed less than the expected
contraction, and in a num ber of instances was m ain
tained at or about the best rate of the year.
Bolstered by the heaviest holiday trade since the
predepression era, retail distribution in December
expanded to the highest volume for the year. The
prolonged spell of extrem ely low tem peratures, ac
companied by heavy snows and ice, since the first
of this year has served to slow down retail buying
in both the large cities and the country. W eather
handicaps have also interfered w ith activities in the
building and some other industries.
Taken as a whole, 1939 was the m ost favorable
year for business experienced in this area since 1929,
and in several lines all-time high records were
established. W hile there were gains during the
first six m onths over the relatively low levels ob
taining in the sim ilar period a year earlier, substan
tial upsw ing took place in the final half and was
given m arked im petus by the outbreak of the w ar
in Europe. Increased production occurred in virtu
ally all classifications of commodities, but was m ost
pronounced in the durable goods industries, particu
larly iron and steel and their products. Reflecting
the heavy volume of distribution, freight traffic of
railroads operating in the district was m easurably
greater than a year earlier.
Revival in the building industry during the year
Page 2
was reflected in notable expansion in demand for all
descriptions of building m aterials. There were
sharp increases in production of lumber, cement,
glass, fire clay products, builders hardw are, paints
and kindred products. Activities in the iron and
steel industry increased steadily throughout the
year until mid-December, when seasonal influences,
such as repairs, inventorying, vacations, etc., caused
a tem porary slow ing down. Recovery from the
holiday lull, however, has been more rapid and com
plete than is ordinarily the case. Production of
bitum inous coal at mines in this general area ex
ceeded th at of the preceding year by a considerable
amount. O w ing to the extensive developm ent in
new Illinois oil fields, production of petroleum in
the district in 1939 was more than twice as large
as th at in any preceding year.
W eather conditions throughout the district in late
December and the first half of January were in the
main favorable for fall sown cereal crops and agri
cultural operations generally. H eavy snows af
forded needed m oisture and protection for the
grow ing w inter w heat crop. T he open fall per
m itted of uninterrupted outdoor work, and more
plowing for spring plantings has been accomplished
than in any recent season. From the standpoint of
yields per acre of the principal crops, 1939 was an
exceptional year in this area. Generally production
was large, particularly of food and feed crops.
December sales of departm ent stores in the prin
cipal cities increased more than seasonally from
November and the same was true of variety store
sales. D epartm ent store volume in December was
52.6 per cent greater than in Novem ber and 4.6 per
cent more than in December, 1938; for the year the
total was larger by 5.9 per cent than during the
preceding 12 m onths. Combined sales of all whole
saling and jobbing firms whose statistics are avail
able to this bank were 7.2 per cent less in December
than in the preceding m onth and 4.9 per cent greater
than a year earlier. Retail sales of passenger auto
mobiles in the St. Louis area in December were 2.0
per cent and 13.7 per cent greater, respectively, than
a m onth and a year earlier.
Commercial failures in the E ighth Federal Re
serve D istrict in December, according to D un and
B radstreet, num bered 38, involving liabilities of
$391,000, against 30 defaults w ith liabilities of
$472,000 in Novem ber and 33 insolvencies for a total
of $499,000 in December, 1938. In 1939 there were
397 failures w ith liabilities of $6,100,000, compared
w ith 499 defaults for a total of $6,401,000 in 1938.
DETAILED SURVEY OF DISTRICT
M A N U F A C T U R IN G A N D W H O L E S A L IN G
Lines of Commodities
N et Sales
Stocks
D ata furnished by Bureau of Census,
U . S. Dept, of Commerce.
December, 1939
compared with
N ov., *39 D ec., ’38
Dec. 31, 1939
comp, with
Dec. 31, 1938
A utom otive Su p p lies.........
B oots and S h o es...................
Dry G oods.............................
Electrical Su pplies..............
Furniture................................
G roceries................................
Hat d w are..............................
Tobacco and its Products.
M iscellaneous.......................
-0 - %
— 0.7
— 30.5
+ 7.1
— 20.5
—
8.1
— 8.3
+ 10.5
—
0.6
+ 5.6%
+ 9.4
— 0.4
+ 33.3
+ 8.4
— 4.2
+ 4.9
6.1
+
+ 6.8
+ 14.2
+ 4 1 .2
+ 2 6 .3
+ 2 2 .3
+ 12.7
+ 6.5
In December all lines of w holesaling whose
statistics are available to this bank, excepting dry
goods, continued to show a larger volume of busi
ness than during the corresponding period in 1938.
Combined sales of all groups were approxim ately
5 per cent larger than a year earlier. Decreases from
Novem ber to December shown in the above table
were for the m ost part seasonal in character, and
w ith the exception of dry goods were som ew hat
sm aller than average during the past decade. In
ventories at the close of the year were larger in all
lines than a year earlier, w ith the heaviest increase
being in furniture. Changes from the preceding
m onth were negligible in a m ajority of lines. P re
lim inary figures indicate an increase of about 3.6 per
cent in district shoe production from Novem ber to
December.
Automobiles— Combined passenger car, truck and
taxicab production in the U nited States in Decem
ber totaled 452,024 as against 357,782 in Novem ber
and 388,346 in December, 1938. In 1939 production
am ounted to 3,574,678 vehicles which compares
w ith 2,489,555 in 1938 and 4,809,515 in 1937.
Iron and Steel Products—A ctivities in the iron
and steel industry in this area have recovered more
rapidly than usual from the holiday interruption.
Strong resistance was opposed to the seasonal
trends by the industry as a whole, and in certain
lines operations were m aintained at or about the
best rate recorded in recent m onths. T his was true
particularly of specialty m akers, such as heating
apparatus, engines and some other types of m achin
ery. Backlogs held by mills and a m ajority of
foundries, while below the levels of early December,
are m easurably greater than at the corresponding
period a year ago. New purchasing has receded
noticeably from the peak last fall, but this is a ttrib
uted to prior heavy coverage and the fact th at m any
consum ers have not completed their annual in
ventories.
Dem and for structural steel, including reinforcing
concrete bars, is more active than usual at m id
w inter and pending projects, m ainly State and
Government, indicate an increased volume of buy
ing during the next four to six weeks. December
sales of warehouse and jobbing interests reporting
to this bank were slightly higher than in November,
and about one-fifth greater than in December, 1938.
Reflecting the taking off of several open-hearth
furnaces for repairs, ingot production in this dis
trict in late December declined from the year’s peak
of 85 per cent to 70 per cent, b u t by m id-January
the rate had recovered to 83 per cent, which com
pares w ith 40 per cent a year ago.
F or the entire country, production of pig iron in
December, according to the m agazine “ Steel”, was
3,767,605 tons, best for any m onth since July, 1929,
and com paring w ith 3,720,100 tons in Novem ber and
2,212,718 tons in December, 1938. Steel ingot pro
duction in the U nited States in December amounted
to 5,164,420 tons, against 5,462,616 tons in Novem
ber and 3,130,746 tons in December, 1938. Produc
tion for all of 1939 totaled 45,768,899 tons, an in
crease of 18,026,674 tons over the preceding twelve
m onths.
W H IS K E Y
As of m id-January 28 of the 60 distilleries in K en
tucky were in operation, tw o less than a month
earlier. The decrease is of little significance as the
distillers have well defined program s for 1940, and
several plants will shortly be placed in production.
According to trade sources consum ption of Bourbon
whiskey in Novem ber was the highest for that
m onth of record, and the upw ard trend continued
through December. An increase in holiday sales of
bottled-in-bond goods of approxim ately 10 per cent
over the 1938 season was reported.
W hiskey production in K entucky during 1939,
w ith December output estim ated, is placed at ap
proxim ately 37,500,000 gallons, an increase of 4,000,000 gallons, or 11.9 per cent, over 1938. Taxpaid
w ithdraw als totaled about 24,400,000 gallons, an in
crease of 3,000,000 gallons over 1938.
M IN IN G A N D O IL
Coal— Soft coal production at mines in this general
area in December totaled 11,371,000 tons, as against
11.460.000 tons in Novem ber and 12,123,000 tons in
December, 1938. December production in the U nited
States totaled 37,283,000 tons, which compares with
42.835.000 tons in Novem ber and 36,541,000 tons in
December, 1938. O utput for the year 1939 totaled
389.298.000 tons against 342,317,000 tons in 1938.
A t Illinois mines 4,318,953 tons were lifted in
December, as against 4,228,066 tons in November
Page 3
and 4,562,573 tons in December, 1938. T here were
108 mines in operation in December w ith 27,345
men on payrolls, against 116 active mines and 29,997
operatives in November.
Petroleum — November output of crude oil in
states of the E ighth D istrict was 1.7 per cent less
than in O ctober and 152.6 per cent greater than in
November, 1938. 'Cumulative total for the eleven
m onths of 1939 exceeded th at of the like period in
1938 by 153.8 per cent. These increases reflect de
velopm ents in the new Illinois fields. Stocks on
December 1 were 2.2 per cent less and 9.1 per cent
greater, respectively, than a m onth and a year
earlier. D etailed production and stocks by states
are given in the following ta b le :
_____ Production_____
Stocks
(I n thousands
of barrels)
N ov.,
1939
Oct.,
1939
N ov.,
1938
A r k a n s a s ..............
I llin o is.......................
In d ian a .....................
K entu ck y................
T o ta ls...................
2,071 1,993
10,222 10,601
222
180
472
443
12,987 13,217
1,470
3,072
85
514
5,141
Cumulative
1939
1938
19,002 16,624
83,570 20,083
1,196
905
5,132 5,298
108,900 42,910
N ov.,
1939
N ov.,
1938
1,896 2,291
13,123 11,311
3,209 3,198
1,361 1,147
19,589 17,947
R E T A IL T R A D E
D epartm ent Stores—T he trend of retail trade in
the E ighth D istrict, as reflected in statistics of de
partm ent stores in the principal cities which report
to this bank, is shown in the following com parative
sta te m e n t:
Stock
Stocks
N et Sales
L2 mos. ’39
to same
period ’38
compared with
N o v .,*39 D ec.,’38
Ft. Smith, A rk.. . . + 5 8 .6 %
L ittle Rock, A r k .. . + 4 3 .0
Louisville, K y ............+ 6 7 .4
Memphis, T en n .. . . + 6 2 .4
Pine Bluff, A r k .... + 9 4 .7
Quincy, 111...................+ 7 2 .2
St. Louis, M o.............+ 4 7 .7
Spring-field, M o ... . + 4 7 .1
A ll Other C ities. . . + 6 1 .5
8'th F . R. D is t iic t .. + 5 2 .6
+ 6.0*5
+ 3.6
+ 5.0
+ 5.8
+ 3 .3
+ 5.9
+ 4 .0
+ 5.5
+ 8.6
+ 4 .6
D ec. 3 1 /3 9
comp, with
D ec. 31,’38
L 0.4%
- 6.7
- 5.9
- 8.0
-14.4
- 7.5
- 5.2
- 5.7
-11.3
+ 5.9
+ 9.2%
+ 9.1
+ 1.6
+ 8.9
+ 17.2
— 5.8
+ 4.9
+ 11.7
— 0.1
+ 5.5
Turnover
Jan. 1, to
Dec. 31,
1939 1938
2.99
3.47
4.48
3.75
3.14
4.15
4.76
3.41
3.64
4.38
3.03
3.25
4.10
3.49
2.64
3.40
4.36
3.16
3.30
4.03
T R A N SP O R T A T IO N
The St. Louis Term inal Railw ay Association,
which handles interchanges for 28 connecting lines,
interchanged 84,309 loads in December, as against
86,821 loads in November and 78,358 loads in De
cember, 1938. In 1939 the interchange am ounted to
982,081 loads, which compares w ith 904,081 loads in
1938, 1,109,147 loads in 1937 and 1,066,898 loads in
1936. D uring the first nine days of January 23,321
loads were interchanged, as against 21,376 loads
during the same interval in 1939. Passenger traffic
of the reporting roads in December showed a de
crease of 1.0 per cent in num ber of passengers
carried and an increase of 0.4 per cent in revenue as
compared w ith the same m onth a year ago. For
the entire country loadings of revenue freight in
1939 totaled 34,102,759 cars, against 30,457,078 cars
in 1938 and 37,670,464 cars in 1937.
Estim ated tonnage of the Federal Barge Line be
tween St. Louis and New Orleans in December was
129,400 tons, against 192,435 tons in November and
171,244 tons in December, 1938. In the twelve
m onths of 1939 the Barge Line carried 1,896,483
tons, as against 2,408,943 tons in 1938 and 1,831,055
tons in 1937. T he decline from 1938 was attributable
m ainly to labor difficulties experienced last spring
which tem porarily halted the service.
A G R IC U L TU R E
Combined receipts from the sale of principal farm
products and Government benefit paym ents to far
m ers in states including the E ighth D istrict during
the period January-N ovem ber, 1937, 1938 and 1939,
and during November, 1938 and 1939, are given in
the following table:
November
1938
1939
$ 23,919 $ 20,824
41,393
36,582
30,929
26,480
5,888
7,175
.
12,070
12,228
20,375
21,572
M ississip p i.. . ,
18,218
21,579
, $155,276 $143,956
of dollars)
Percentage of accounts and notes receivable out
standing December 1, 1939, collected during De
cember, by c itie s :
Installm ent E xcl. Instal.
A ccounts
A ccounts
Fort S m ith .. . .
%
L ittle R ock. . . . 17.1
L o u isv ille ......... 15.6
M em phis............. 32.8
45.2%
37.3
44.3
48.6
Installm ent E xcl. Instal.
A ccounts
Accounts
Q u in cy ............................ %
St. L o u is.............. 20.4
Other C ities......... 15.9
8th F. R. D istrict 21.0
52.3%
60.4
46.6
53.0
Specialty Stores—December results in m en’s fur
nishings and boot and shoe lines are shown in the
following table :
Stock
Stocks
Turnover
N et Sales
on H and
December, 1939 12 mos. ’39 D ec. 31, ’39 Jan. 1, to
compared w ith
to same comp, with
D ec. 31
N o v .,*39 D ec.,’38 period *38 D ec. 31, ’38 1939 1938
M en’s Furnishings + 4 6 .9 % +
B oots and S h o es. . + 4 5 .4
+
2.5%
2.5
+ 4.8%
+ 1.0
+
+
9.9%
7.8
2.80
7.36
2.61
7.38
Percentage of accounts and notes receivable out
standing December 1, 1939, collected during De
cember :
M en’s F u rn ish ings................ 35.6%
Page 4
B oots and S h o es..................3 8 .8 %
Cumulative for 11 months
1939
1938
1937
$ 239,552
$ 235,052
$ 266,009
422,879
406,451
439,257
235,793
227,135
251,194
114,043
129,138
130,222
110,526
112,837
115,940
123,408
128,878
122,508
140,262
140,763
145,227
$1,381,963 $1,384,754 $1,470,357
Farm ing Conditions—The U. S. D epartm ent of
A griculture’s end-of-the-season survey shows that
from the standpoint of yields per acre and produc
tion of the principal crops, 1939 was an exceptional
year in E ighth D istrict agriculture. W ith the ex
ception of wheat, oats and potatoes, output of all
the principal productions was higher than a year
earlier, and in the case of wheat, cotton, corn, hay,
legumes and some lesser crops, exceeded the aver
age of the preceding 16 years. F ru it and vegetable
crops were large and m ainly of high quality, w ith
prices generally favorable. An exception to satis
factory returns to producers was apples, heavy pro
duction and demoralization of the export m arket
caused by the European w ar resulting in prices
during the fall and w inter so low th at profits were
negligible or entirely absent.
A favorable developm ent during the season was
the replenishm ent of farm supplies, which had been
lowered by recent years of drouth, w ith abundant
feed, forage and hay crops. Stocks of corn on farms
as of January 1, 1940, were 4.6 per cent higher than
a year earlier and 43.5 per cent above the 10-year
(1929-1938) average. H ay production in the dis
tric t in 1939 was approxim ately 17 per cent above
average, and output of legumes, including soy
beans, the largest of record. T aken as a whole the
status of the livestock industry underw ent distinct
betterm ent during the year. T hroughout the period
the condition of herds was high, and num erically all
species were greater than since the pre-drouth era.
Progress was made in dairying and poultry raising.
D uring December prices of grains, cotton, live
stock and poultry, and some lesser products moved
upward. W heat reached the highest levels in a
num ber of years, being influenced by the w ar in
Europe and unfavorable conditions for the grow ing
crop in this country. As of December 30 the farm
products group of the U. S. B ureau of Labor Statis
tics index stood at 68.5 per cent of the 1926 average.
T his represented an increase of 12.1 per cent over
last A ugust 26, and compared w ith 68.3 per cent on
Decem ber 31, 1938.
Cotton — From the beginning of the m arketing
season the crop has moved rapidly, owing to active
dom estic and export dem and for the staple and
sharp upturn in prices. As illustrating the unusual
ly rapid movem ent, combined receipts at Arkansas
and M issouri compresses from A ugust 1, 1939, to
Jan u ary 12, 1940, totaled 1,716,840 bales, as against
1,526,244 bales during the same interval a year
earlier. Shipm ents during the period am ounted to
1,454,051 bales as against 665,202 bales in the pre
vious season. Stocks on hand as of January 12,
w ere 1,619,348 bales compared w ith 1,678,656 bales
on the corresponding date in 1939.
In the St. Louis m arket m iddling cotton ranged
in price from 10.25c to 10.65c per pound between
Decem ber 15 and January 15, closing at 10.50c on
the latter date, which compares w ith 10.60c on
Decem ber 15 and 8.90c on January 16, 1939. The
open fall was ideal for field work, and generally
more plow ing and preparation of the soil for the
1940 crop than usual is reported.
Livestock— In all sections of the district fall and
early w inter conditions were ideal for livestock
operations and the status of herds at m id-January
was exceptionally high. M ovem ent to m arket of
cattle, hogs and sheep combined in December was
measurable larger than a year and tw o years ago.
The rapid upsw ing in hog production, th at started
in the spring of 1938, continued through the fall of
1939. The num ber of sheep and lambs on feed as
of January 1 in states of the E ighth D istrict was
approxim ately 3 per cent larger than on the same
date in 1939. Because of the rather early move
ment of lambs into the Corn Belt this season, it is
expected th at m arketings of fed lambs from the
Corn Belt in January and early February will be
relatively large.
Receipts and shipm ents at St. Louis as reported
by the National Stock Y ards were as follow s:
_________ Receipts_______
D ec.,
1939
N ov.,
1939
D ec.,
1938
Cattle and C alves___
84,372 115,856 92,315
H o g s.................................. 292,512 237,943 252,825
Horses and M ules. . . .
2,735
1,876
2,349
Sheep................................
46,959 62,307 58,955
T o ta ls........................... 426,578 417,982 406,444
Shipments
D ec.,
1939
N ov.,
1939
D ec.r
1938
51,630 77,223 63,007
159,269 143,042 143,034
1,570
1,402
2,143
6,926 12,897 17,883
219,395 234,564 226,067
The following table shows com parative receipts
and shipm ents for the years 1937, 1938 and 1939:
________Receipts________
Shipments
(In thousands)
1939
1938
1937
1939
1938
1937
Cattle and C alves.........
H o g s ..................................
Horses and M u les. . . .
Sh eep..................................
T o ta ls...........................
1,294
2,626
29
820
4,769
1,403
2,412
40
988
4,843
1,589
2,265
52
1,050
4,956
812
1,608
27
265
2,712
893
1,435
39
330
2,697
995
1,308
52
382
2,737
Tobacco—T otal gross sales of burley leaf to the
holiday recess, December 22, was 183,000,000
pounds at an average of $16.09 per cwt. Consider
able colory thin tobacco is noted in offerings thus
far, with red grades of good body relatively scarce.
Good to fine grades, the latter quite scarce, are
somewhat cheaper than last year. T he m arkets re
opened on January 8 , and a new season high aver
age of $18.69 was recorded, which compares with
the previous high of $17.11 on December 18.
Subsequent sales were slightly under the peak
average. Ow ing to severe w eather the crop has not
moved as rapidly or in as large volume as before
Christmas.
In the dark fired district unfavorable w eather
conditions have held back stripping and preparing
the crop, and as a result opening of the m arkets for
this type has been delayed. Tw o floors did open on
January 10, however, w ith light sales at an average
of $7.47 per cwt., $2.00 above the 1939 opening
average. Indications point to a crop of good, aver
age quality and useful style.
Only two m arkets in the Green River and stem
ming area were reported operating when sales were
resumed January 2. Previously only 2,000,000
pounds were sold at approxim ately $7.10 per cwt.
The crop is generally reported disappointing, the
leaf showing a tinge of grayish color.
.Page 5
Offerings of the one sucker type were light and
ot common to medium grades, totaling 4,998,000
pounds, w ith an average price of $7.10 per cwt.
Volume of sales is expected to be limited until more
favorable w eather conditions for handling.
W inter W heat — According to estimates of the
U. S. D epartm ent of A griculture, the area of w inter
w heat seeded in states of the Eighth D istrict last
fall was 5,963,000 acres, which compares with
6.317.000 acres in 1938, 8,054,000 acres in 1937 and
6.862.000 acres for the fall planting average in the
10-year period 1927-1936. Owing principally to
the fall and w inter drouth, the condition of the
grow ing crop as of December 1 in all states of the
district was considerably below a year earlier and
the December 1 average during the 10-year period.
Smaller plantings are attributed to a num ber of
causes, am ong them the large world stocks, con
form ing w ith the AAA program , and low prices
prevailing during the early m arketing season of the
1939 crop. Farm stocks of w inter wheat in states
of this district as of January 1 were 17,712,000
bushels, against 25,446,000 bushels on the same date
in 1939 and the 10-year (1929-1938) January 1 aver
age of 22,634,000 bushels.
C O M M O D ITY PR IC ES
Range of prices in the St. Louis m arket between
December 15, 1939 and January 15, 1940, with clos
ing quotations on the latter date and on January 16,
1939, follows:
and $27,458,000 in December, 1938. T he large De
cember, 1939, total includes figures for a dam under
construction by the Tennessee Valley A uthority.
For the year, construction contracts totaled $336,323,000, as against $208,735,000 for 1938. Building
figures for December follow:
N ew Construction
(C ost in
thousands)
Perm its
1939 1938
E v a n s v ille ....
L ittle R o ck ___
L o u isville.........
M em phis............
S t.L o u is............
D ec. T o ta ls. . .
N ov. “
----Oct.
“
----Year “
-----
9
4
18
10
58
42
233
133
162
189
480
378
631
622
752
679
8,206 6,865
W heat
* M ay.....................per bu. $1.05?6
1.04
*Ju ly .....................
*Sept....................
“
1.0054
N o. 2 red wintei
“
1.11H
N o. 2 hard “
“
1.1154
Corn
*M ay.....................
.57
*July.....................
“
.5754
*Sept......................
“
.5 8 ^
N o. 2 m ixed. . . .
“
.60%
N o. 2 w hite. . . .
“
.64
Oats
*M ay.....................
“
.3954
.3434
*July.....................
.3 2 ^
*Sept......................
“
N o. 2 w hite. . . .
“
.45
Flour
Soft patent. . . . perbbl. ..7 .1 0
Spring “ .........
“
6.55
M iddling C otton.per lb.
.1065
H ogs on H oof. . .per cwt. 5.80
^Nominal quotations.
Low
$ .95
.92%
.9256
1.03
1.0254
$
.9756
.947/s
.9456
1.03
1.0254
$
.6554
.65 ^6
. 66*6
.72
.72
.543,4
.555*
.5554
.56
.62
.64
.4956
.5054
.51
.52
.5254
.37*6
.33*6
.3154
.42
.39
.3334
.3154
.45
.2854
.2756
.26*6
.3354
6.00
5.85
.1025
5.30
6.00@ 6.70
5.85@ 6.10
.1050
5.71
4.00@ 5.35
5.25@ 5.55
.0890
7.58
•5524
•5656
.5 654
.60 y2
B U IL D IN G
The dollar value of perm its issued for new con
struction in the five largest cities of the district in
December was 12.9 per cent more than in November
and 14.1 per cent greater than in December, 1938.
According to statistics compiled by the F. W.
Dodge Corporation, construction contracts let in the
E ighth D istrict in December amounted to $132,164,000, which compares w ith $18,297,000 in November
Page 6
$
11
24
90
212
1,161
1,498
2,035
1,525
17,309
1939
Cost
1938
47
35 $ 35 $ 23
47
53
9
16
18
23
19
87
105
103
46
52
99
118
296
165
316
332
405
343
761
539
394
367
668
523
457
586
7,200 6,567 5,986 5,063
P O ST A L R E C E IP T S
Quarter ending: D ec. 31,
1939
E van sville................ $ 202,823
L ittle R ock ..............
246,022
849,013
L ouisville.................
M em phis...................
870,703
S t .L o u is ..................
3,055,954
T o ta ls....................... $5,404,515
Sept. 30,
1939
D ec. 31, Comp, last Qtrs.
1938
’39 and ’38
$
175,268
216,560
687,714
648,666
2,526,044
$4,254,252
$
189,998
243,070
796,254
847,158
3,032,588
$5,109,068
+
+
+
+
+
+
6.8%
1.2
6.6
2.8
0.8
5.8
The following table shows the com parative totals
for the years 1937, 1938 and 1939:
1939
T o ta ls............
$18,591,947
1938
1937
$17,840,176
$17,739,649
1939 comp, with
1938
1937
+
4.2%
+
4.8%
C O N SU M PT IO N OF EL E C T R IC IT Y
Jan. 16, 1939
Jan. 15, 1940
$ 258
52
126
591
682
1,709
1,514
4,022
26,149
Perm its
1939 1938
R eturns from the five largest cities of the district
show an increase of 27.0 per cent in combined postal
receipts for the final quarter of 1939 over the pre
ceding three m onths, and of 5.8 per cent over the
last quarter of 1938. Detailed figures follow :
Close
H igh
Repairs, etc.
Cost
1939
1938
Public utilities companies in six large cities of the
district report consumption of electric current by
selected industrial custom ers in December as being
4.1 per cent less than in November and 11.8 per cent
greater than in December, 1938. T otal consumption
in 1939 was 12.1 per cent greater than in 1938.
Detailed figures follow :
(K . W . H .
in thous.)
N o. of
D ec.,
N ov.,
Custom- 1939
1939
ers
K„W .H. K .W .H .
E vansville............ 40
L ittle R ock......... 35
L ouisville............ 82
M em phis.............. 31
Pine B lu ff........... 20
S t .L o u is .............216
T o ta ls..............424
3,778
2,055
9,285
2,369
1,268
24,887
43,642
3,505
2,184
9,697
2,439
1,068
26,605
45,498
D ec.,
December, 1939
1938
compared w ith
K .W .H . N ov., 1939 D ec., 1938
2,922
1,918
7,987
2,404
1,035
22,759
39,025
+ 7.8%
— 5.9
— 4.2
— 2.9
+ 1 8 .7
— 6.5
— 4.1
+ 2 9 .3 %
+ 7.1
4-16.3
— 1.5
+ 2 2 .5
4 - 9.4
+ 1 1 .8
The following table shows com parative figures
of consum ption of electric current by selected in
dustrial custom ers, for the years 1938 and 1939 :
1939
K .W .H .
Evansville, In d ian a ................
L ittle Rock, A rkansas.........
Louisville, K en tu ck y ..............
Memphis, T en n essee..............
Pine B luff, A rkansas............
St. L ouis, M issouri................
38,398,000
25,487,00^
109,182,000
27,952,000
9,550,000
304,370,000
T o ta ls.........................................514,939,000
1938
K .W .H .
1939 compared
w ith 1938
28,430,000
24,178,000
96,676,000
26,046,000
10,032,000
273,816,000
+ 3 5 .1 %
4" 5.4
+ 1 2 .9
4" 7.3
— 4.8
+ 1 1 .2
459,178,000
+ 1 2 .1
B A N K IN G A N D F IN A N C E
Changes in the banking and financial situation in
the E ighth D istrict during the past th irty days were
influenced solely by the usual seasonal considera
tions, nothing having occurred to alter trends ob
taining during the preceding several m onths. Yearend settlem ents w ith m erchants and m anufacturers
were in substantial volume, and were reflected in
considerable liquidation of loans at city banks. The
call for funds to finance agricultural operations was
seasonally light. Grain handlers and flour milling
interests reduced their com m itm ents in about the
expected am ount, but total borrow ings in this cate
gory were heavier than a year earlier, owing to the
higher level of w heat prices. In the tobacco sec
tions some new borrow ing was in evidence, but due
to the rapid m arketing of the crop, particularly
burley types, liquidation has exceeded the volume
of new loans.
Member Banks — F or the first tim e in a num ber
of m onths, total loans of weekly reporting member
banks in the principal cities declined during the
four-week period ending January 17. T he total on
th at date, however, was still 7.7 per cent greater
than at the same tim e in 1939. Gross deposits
changed in m inor degree only during the period,
and at its end were 12.2 per cent above a year earlier.
Follow ing a decline in late November and through
December, reserve balances held by these banks
turned sharply upw ard after the first of the year,
and as of January 17 were only slightly below the
record high established at mid-November.
Statem ent of the principal resource and liability
items of the reporting m ember banks follow s:
Change from
Jan. 17,
Dec. 20,
Jan. 18,
(I n thousands of dollars)
1940
1939
1939
Commercial,industrial, agricultural lo a n s .. .$199,931 — 6,340
+ 1 0 ,0 9 5
Open market paper..............................................
9,542 + 1,059
+ 6,131
Loans to brokers and dealers.........................
5,253 +
251
— 1,056
Other loans to purchase and cariy securities.
12,371 —- 284
—
747
Real E state lo a n s..................................................
51,487 +
66
+ 3,213
Loans to ban ks.....................................................
1,577 —
713
— 5,612
Other lo a n s.............................................................. 56,976 —
901
+ 1 1 ,9 8 6
Treasury b ills .........................................................
2,840 — 3,550 )
Treasury n o tes....................................................... 44,283 — 9,887 r —43,242
U . S. bon ds.............................................................. 139,957 —
895 )
O bligations guaranteed by U .S . Government
70,360 —
853
+ 1 1 ,6 7 9
Other secu rities...................................................... 104,163 + 1,025
+ 1,709
Balances with dom estic ban ks......................... 199,515 + 1 3 ,2 6 7
+ 6 3 ,5 8 6
+ 2 7 ,6 7 6
Demand deposits— adjusted*........................... 477,107 — 3,636
Time dep osits......................................................... 189,849 +
937
+ 2,131
U. S. Government deposits..............................
18,016 +
3
—
108
Inter-bank d e p o s its .............................................. 368,348 + 8,291
+ 7 8 ,3 7 6
B o r r o w in g s .....................................................................................................
*Other than inter-bank and Government deposits, less cash items on
hand or in process of collection.
Above figuies are for 24 member banks in St. Louis, Louisville, Mem
phis, L ittle Rock and Evansville. Their resources comprise approximately
62.0% of the resources of all member banks in this district.
T he aggregate am ount of savings deposits held
by selected member banks on January 3 was slightly
larger than on December 6 and 2.0 per cent greater
than the total on January 4, 1939.
Interest rates remained unchanged. A t down
town St. Louis banks as of the week ended January
15, rates charged were as follow s: Custom ers’
prime commercial paper, 124 to 5H per cent; col
lateral loans, 2T
A to 6 per cent; loans secured by
warehouse receipts, 13
A to 5H per cent and inter
bank loans, 2% to 5H per cent.
Federal Reserve O perations—T he volume of the
m ajor operations of the Federal Reserve Bank of St.
Louis, during December, 1939, is indicated below:
(Incl. Louisville, M emphis, L ittle Rock branches) Pieces
Checks (cash item s) handled................................... 5,676,795
Collections (non-cash item s) handled..................
157,692
Transfers of fu n d s.........................................................
4,913
Currency received and counted.............................. 9,683,529
Coin received and counted......................................... 9,422,167
Rediscounts, advances and com m itm ents............
25
N ew issues, redemptions, and exchanges of
securities as fiscal agent of U .S . G ov’t, etc.........
23,636
Bills and securities in custody— coupons clipped.
33,975
Amounts
$1,327,805,939
34,636,995
390,439,144
34,478,911
1,121,465
711,750
71,288,548
Changes in the principal assets and liabilities of
this bank appear in the following ta b le :
Jan. 18,
(In thousands of dollars)
1940
Industrial advances under Sec. 13b............$ 5
26
Other advances and rediscounts...................
236
Bills bought (including participations) . .
U. S. securities..................................................... 111,091
Total earning a sse ts....................................... 111,353
F. R. N otes in circulation..............................
Industrial commitments under Sec. 1 3 b ..
Ratio of reserve to deposit
Change from
D ec. 18, Jan. 18,
1939
1939
2
+
5 +
—
119 +
158
2
*+ 2 6 ,1 6 4 — 8,732
+ 2 6 ,0 5 0 — 8,574
426,444
345,646
190,608
152
79.5%
— 13,062
+ 18,521
— 2,688
—
236
— 5.0%
+
+
+
90,273
74,959
10,478
—
+
289
4.9%
Following are the rates of this bank for accom
modations under the Federal Reserve A ct:
Advances to banks, secured by direct obligations of
the United States, under paragraph 13 of Section 13 ..1
Advances to member banks, under paragraph 8 of Sec
tion 13, secured by direct obligations of the U nited
States or by such Government guaranteed obliga
tions as are eligible for collateral thereunder..................
Rediscounts and other advances to member banks
under Sections 13 and 13a.....................................................
Advances to member banks under Section 10b..................
Advances to individuals, firms, and corporations, other
than banks, secured by direct obligations of the
U nited States, under paragraph 13 of Section 1 3 ___ .4
Rediscounts, purchases, and advances to member
banks, nonmember banks, and other financing insti
tutions, under Section 13b:
(a) On portion for which such institution is obligated 3y2 %
(b) On remaining portion.................................................. .4 7c
Commitments, not exceeding 6 months, to member
banks, nonmember banks, and other financing insti
tutions, to rediscount, purchase, or make advances,
under Section 13b..................................................................... . .
Advances to established industrial or commercial { 4 %
businesses under Section 13b................................................ 1 5
per annum
per annum
per annum
per annum
y2%flat
to
y2%per annum
The Bloomfield State Bank, Bloomfield, Ind., be
came a member of the System on January 4.
Debits to Individual Accounts — The following
comparative table of debits to individual accounts
reflects spending trends in this d istric t:
(I n thousands
of dollars)
D ec.,
1939
’1
Stock Yards, 111..$ 38,640
E l Dorado, Ark.........
6,060
Evansville, Ind ...........
36,825
Fort Smith, Ark.........
13,849
Greenville, M iss.........
7,610
Helena, Ark................
3,196
Little Rock, A rk .. . .
46,747
Louisville, K y............. 196,738
197,290
8,054
Owensboro, Ky.
11,307
9,169
Quincy, 111...................
St. Louis, M o........... 688,373
2,510
Sedalia, M o..................
14,039
Springfield, M o.........
9,328
Texarkana, A rk.-Tex.
T otals......................... 1,289,735
,289,735
(Completed January 22, 1940)
N ov.,
1939
$
36,526
5,237
29,832
11,997
7,071
2,959
39,150
154,697
170,511
6,205
9,666
8,791
605,600
2,201
13,875
7,304
1,111,622
D ec.,
1938
$ 36,147
6,204
31,995
13,883
5,432
2,457
39,631
183,540
138,466
8,749
10,780
8,704
659,539
2,438
14,018
8,771
1,170,754
D ec.,’39,comp, with
N o v .,’39 D ec.,’38
- 5.8%
(-15.7
-23.4
-15.4
- 7.6
- 8.0
-19.4
-27.2
-15.7
-29.8
-17.0
- 4.3
-13.7
-14.0
- 1.2
-27.7
+ 16.0
+ 6.9%
— 2.3
+ 15.1
— 0.2
+ 4 0 .1
+ 3 0 .1
+ 18.0
+ 7.2
+ 4 2 .5
— 7.9
+ 4.9
+ 5.3
+ 4.4
+ 3.0
+ 0.1
+ 6.4
+ 10.2
Page 7
N A TIO NA L SUMMARY OF B U SIN E SS CO NDITIONS
B Y B O A R D O F G O V E R N O R S O F F E D E R A L R E S E R V E SY ST E M
INDUSTRIAL PRODUCTION
Index of physical volum e of production, adjusted for sea
sonal variation, 1923-1925 average = 100. B y months,
January, 1934, to December, 1939. L atest figure 128.
DEPARTMENT STORE SALES AND STOCKS
Industrial activity, after a rapid rise in recent months, declined less
than seasonally in December. In the first half of January activity did not
show the usual seasonal increase. Distribution of commodities to consumers
was maintained in large volume.
Production—Industrial output decreased in December, but by a smaller
amount than is usual at this season, with the consequence that the Board’s
index, which allows for usual seasonal variations, advanced further from
124 to 128 per cent of the 1923-1925 average. As in other recent months,
the rise in the index continued to reflect mainly increased activity in in
dustries producing durable goods. Automobile production rose sharply in
December owing to the reopening of plants of one large producer which
had been closed for almost two months. Plate glass production also in
creased. At steel mills activity was maintained near the high level that
prevailed in October and November; fourth quarter production of steel
ingots was greater than in any other three-month period on record. Output
of zinc and deliveries of tin continued to increase in December, and lumber
production declined less than seasonally.
In the nondurable goods industries, where production had been at high
levels throughout the autumn, changes in output in December were largely
seasonal in character. At woolen textile mills, however, there was a con
siderable reduction in activity, and activity at silk mills declined to a low
level, reflecting in part continued high prices of raw silk. Output of crude
petroleum continued at a high rate in December, while coal production was
reduced, following a large volume of output in the two preceding months.
In the first half of January steel ingot production was at a somewhat
lower level than in December, while automobile assemblies were maintained
at about the same high rate as in the previous month.
Indexes of value of sales and stocks, adjusted for seasonal
variation, 1923-1925 average = 100. B y months, January,
1934, to December, 1939.
WHOLESALE PRICES
Value of construction contracts awarded, as reported by the F. W.
Dodge Corporation, increased further in December, owing to the inclusion
in the December figures of a large amount for a dam under construction
by the Tennessee Valley Authority. Contracts for private building, both
residential and nonresidential, declined seasonally.
Employment — According to reports from leading industrial States,
factory employment decreased less than seasonally in December and pa}'
rolls showed a further advance.
Distribution — Distribution of commodities to consumers increased
further in December. Sales at variety stores showed about the usual sharp
rise and sales at department stores and mail-order houses increased more
than seasonally. Freight-car loadings declined by more than the usual
seasonal amount from November to December, reflecting chiefly a further
reduction in coal shipments and a decrease in loadings of ore, which had
been at a high level in the previous month.
Index compiled by the U nited States Bureau of Labor
Statistics, 1926 = 100. B y weeks, 1934 to week ending
January 13, 1940. L atest figure 79.5.
MEMBER BANKS IN 101 LEADING CITIES
Commodity Prices—Prices of wheat, which had advanced sharply early
in December and continued at the higher level during the rest of the month,
declined considerably in the first half of January. Smaller decreases
occurred in some other commodities, including hides, tin, and zinc. Prices
of most other basic commodities, such as cotton, wool, lead, and steel scrap,
showed little change.
Government Security Market — Prices of United States Government
securities continued to advance during December and were steady during
the first two weeks of January.
Bank Credit—Total loans and investments of reporting member banks
in 101 leading cities declined in the four weeks ending January 10, following
an increase during the first half of December. These changes reflected
largely a temporary rise and a subsequent decline in loans to security
brokers and dealers in connection with the Government’s flotation of a new
issue of bonds. Total holdings of United States Government obligations at
city banks showed little net change during the period.
W ednesday figures for reporting member banks in 101
leading cities, September 5, 1934, to January 10, 1940.
Commercial loans, which include industrial and agricul
tural loans, represent prior to M ay 19, 1937, so-called
“ Other loans” as then reported.
Page 8
As a result chiefly of further increases in gold stock as well as the
post-holiday return of currency from circulation, excess reserves of member
banks increased sharply in the four weeks ending January 10.
@FedFRASER