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BUSINESS CONDITIONS Monthly Review of Agriculture, Industry, Trade and Finance Released for Publication in Morning Papers of July 1, 1942 FEDERAL RESERVE BANK M i s s i s s i p p i Wa t e r m e l o n s R e a d y f o r S h i p m e n t OF ST. LOUIS S U R VE Y OF COMMERCIAL AND IND U STR IA L LOANS T H IS bank has ju st completed a special survey of commercial and industrial loans made by member banks in the E ighth Federal Reserve D istrict betw een April 16 and May 15. Included in the survey were reports from 270 banks which on December 31, 1941, held $317,000,000, or 96 per cent of the total commercial and industrial loans held by the 437 member banks. The following points were brought out by the survey: 1. The am ount of commercial and industrial loans outstanding dropped 4 per cent between April 16 and May 15, after showing little change from the close of 1941 to April 15. T he decline in these loans this year was more pronounced than in either 1940 or 1941, while in 1939 loan volume of weekly reporting member banks increased in the com par able m onthly period. 2. On December 31 the commercial and industrial loans of the banks included in the survey were dis tributed as follow s: The 7 large banks held about 65 per cent, the 23 sm aller banks located in the large cities about 15 per cent, and the 240 other banks about 20 per cent. Both the large banks and “other” banks showed a decline in commercial and indus trial loans outstanding from December 31, 1941, to April 15, 1942, and a further decline to May 15. The smaller city banks increased their outstandings by more than 20 per cent from the end of last year to April 15 but their loan volume declined about 9 per cent in the next month. This was the only class of banks, however, whose oustandings on May 15 exceeded the December 31 total. 3. Of all loans and renewals made during the m onth 23 per cent were classified as being w ar loans. Loans and renewals to commercial and in dustrial borrow ers by both large banks and smaller city banks in the m onth were divided about 25 per cent for w ar and 75 per cent for non-war purposes, while only 18 per cent of total loans and renewals made by the other banks was for w ar purposes. W hen only new loans are considered, however, the percentage for w ar purposes am ounted to about 30 per cent, indicating th at lending activity related to the w ar program is increasing. The average size of the w ar loans was $25,800 or 65 per cent larger than the average for all loans. 4. A bout 42 per cent of all loans and renewals made in the m onth w ent to finance wholesale and retail trade, including comm odity dealers. These loans w^ere largely for non-war purposes. About 30 per cent of the loans w'ent to finance m anufacturing and mining, less than 7 per cent for building and construction, and the rem ainder for other purposes. 5. Am ong the types of business groups, m anu facturing and construction showed the largest bor rowings for w ar purposes. More than 40 per cent of the total of m anufacturing and m ining loans was to finance w ar production. For new loans alone, 56 per cent was for w ar purposes. More than 90 per cent of new loans to three m anufacturing classes, metal mining, metal production, chemicals and rub ber, was for w ar purposes. Moreover, it seems likely th at some of the funds loaned to m anufacturing interests, not specifically classified as for w ar pu r poses, wrent to finance production which indirectly aids the w ar effort or to finance the output of foods and other essential civilian goods. 6. Alm ost 99 per cent of the dollar volume of all loans and renewals made during the m onth carried rates varying from slightly over 1 per cent to 6 per cent w ith approxim ately four-fifths of the volume of loans being made at rates of 4 per cent or less. N ine-tenths of the dollar am ount of loans to bor rowers w ith assets of $5 million or over carried rates of 3 per cent or less and no loan to this class was at more than 5 per cent. V irtually all loans made to borrow ers with assets under $50,000 car ried rates of 3 per cent or more and alm ost 70 per cent of the dollar volume to such borrow ers was loaned at 5 per cent or more. C O M M E R C IA L A N D IN D U S T R I A L L O A N S A N D R E N E W A L S Made by 270 Member Banks in the Eighth Federal Reserve D istrict Betw een April 16 — M ay 15, 1942 W ar Loans as % Loan >tal Loans W ar Loans as Business of Borrower N ew Loans of New Loans Renewals 1 Renewals % of T otal (D o lla r figures in th o u san d s) W holesale an d re ta il trad e, inclu d in g com m odity d e a le rs ......... Sales finance and personal loan co m p an ies.................................... S e rv ic e s: H o tels, re stau ran ts, am usem ents, re p a ir shops, e tc .. M an u fac tu rin g an d M ining — T o t a l.................................................... M etal m ining, refining, and sm e ltin g .............................................. M etal p ro d u cts, in cluding tra n sp o rta tio n equipm ent, sh ip building, ord n an ce and m u n itio n s ................................................ Petro leu m and petro leu m p ro d u c ts .................................................. P u b lic utilities, tra n sp o rta tio n an d com m unication. B u ild in g and co n stru ctio n o p e ra tio n s.............................. Page 2 W ar Loans as % of Renewals $40,700 ' 10,860 787 28,977 1,149 9.4 2.5 9.4 40.5 94.4 $23,998 6,469 274 14,238 1,115 12.7 2.3 14.6 56.3 96.4 $16,702 4,391 513 3,731 34 4.7 2.7 6.6 25.3 29.4 3,391 538 1,081 3,731 12,359 6,728 562 6,297 7,651 77.7 0.7 78.6 19.4 25.7 48.6 32.0 73.3 11.6 1,624 369 918 1,724 5,145 3,343 340 4,736 3,764 90.2 1.1 91.6 28.3 40.8 61.2 30.0 78.3 19.2 1,767 169 163 2,007 7,214 3,385 222 1,562 3,887 66.3 -05.5 11.9 15.0 36.1 34.7 58.3 4.3 95,834 22.6 53,819 29.4 42,016 13.9 S UMM ARY OF EIGHTH DIS TR ICT Increased activity in plants producing essential w ar goods continues to dom inate the industrial scene in the E ighth D istrict. Estim ates as to em ploym ent needs for such m anufacturing facilities indicate th at em ploym ent in this area will gain appreciably in the next few m onths despite pros pective lay-offs in m anufacturing plants unable to obtain m aterial for civilian production and unable to convert for war production. Reports from var ious sections of the district indicate th at both the heavy and light durable goods industries are vir tually all either converted, or are in process of con version. Some plants, however, are reported to have ceased operations because of raw m aterial shortages, particularly in the m etals group. Employees in most of these curtailed industries are finding em ploym ent in the expanding war production facilities. T reasury expenditures for w ar in May totaled about $3.6 billion and on the basis of recent trend, will total about $4 billion in June. This increasing flow of Governm ent paym ents raised the level of the unadjusted index of industrial production pre pared by the Board of Governors of the Federal Reserve System to 177 per cent of the 1935-39 aver age in May, another new high. T he index for April wTas 171 and for March, 168. In May, 1941, the index was 155. W hile m onth to m onth gains in the total index recently have been relatively small percent age-wise as compared w ith m onthly rises a year ago, increases in the durable goods index on a m onth to m onth basis continue to be very marked. From April to May, 1942, the unadjusted index of durable goods production rose 9 points as con trasted w ith a rise of 11 points for the correspond ing period last year. T he index for non-durables advanced 1 point in the month. Indicative of high levels of activity in this district during May, the steel industry operated at virtual capacity w'ith only necessary repairs to furnaces keeping the rate of operations below capacity. P ro duction of both hardw ood and southern pine in the tim ber regions of the southern parts of the district was close to record levels w ith orders in m ost recent weeks exceeding production. Shoe production was at a high level in May. Consum ption of industrial electricity in the principal cities of the district in M ay was 5 per cent greater than in April and 23 per cent more than in May, 1941. Illinois coal pro duction was slightly above the level of the preced ing m onth, as contrasted with a decline during the m onth for the U nited States as a whole, and ex ceeded production in May, 1941, by 26 per cent. Prim ary distribution in the Eighth D istrict in May in general was at a higher level than that obtaining during April and considerably above that of last year. Loads interchanged by the Term inal Railroad Association at St. Louis for 25 connecting lines during May exceeded interchanges during April by 8 per cent and were 41 per cent above those of May, 1941. Cum ulative total of interchanges for the first five m onths of this year was 33 per cent greater than in the corresponding period of last year. Carloadings of all railroads operating in the E ighth Federal Reserve D istrict for the four weeks ending May 30, showed some decline from the pre vious four weeks but were 10 per cent above the level of last year. Tonnage moved by the Federal Barge Line on the M ississippi River between St. Louis and New Orleans in May was 22 per cent above tonnage for April and 18 per cent above ton nage moved in May, 1941. Retail distribution of m erchandise as m easured by departm ent store sales during May was below that of April and of May, 1941. The decline in the past m onth was more than seasonal. Dollar volume of sales of all reporting departm ent stores in the E ighth D istrict in M ay was 11 per cent below that of April and 5 per cent below th at of May, 1941, when there was one more trading day. The F air child index of departm ent store prices continues to stand approxim ately 18 per cent above the level of last year so th at the decline in the physical volume of goods sold in May, 1942, as compared w ith May, 1941, is even more m arked than the decline in the dollar volume of goods sold. Prelim inary indica tions of departm ent store sales in June show a con tinuance of this trend which probably reflects resis tance of consumers to the higher level of retail prices, tightening of open book and instalm ent credit term s, shortages or freezing of stocks of cer tain types of goods, and a decline in demand due to the heavy stocking up by consumers, particularly at the close of last sum m er and early this year. D epartm ent store stocks in this district continue to rise, reflecting largely price increases, but also a heavier physical volume of goods on hand. The increase has been general for all departm ents, but is particularly noticeable in wom en’s wear. Sales of all wholesalers and jobbers in the district in May were 10 per cent less than in April but 16 per cent more than in May, 1941. W holesalers’ stocks were also down slightly as compared w ith a m onth earlier, but were 16 per cent above last year. Page 3 D ET A I LE D S UR V EY OF DIST RI CT M A N U FA C T U R IN G Iron and Steel — Production of steel ingots and castings in this area continued at high levels dur ing May and the first half of June. The rate of steel ingot operations as of m id-June was 95.5 per cent of capacity, unchanged from the level of mid-M ay but slightly below the rate obtaining on June 15 last year. The expansion program in the steel industry in this area has not been curtailed as a result of the recent W ar Production Board decision to reduce the nation-wide steel expansion program of some 10.000.000 tons by about 35 per cent. In fact, com pletion dates on certain of the expansion projects in this area have been advanced appreciably and it seems probable th at production in m ost of the en larged facilities will begin considerably ahead of schedule. Ingot, plate, and castings capacities are being enlarged. The supply of scrap in this area is considerably larger than it was in the earlier m onths of this year. M ost mill and foundry inventories are being held at approxim ately tw o w eeks’ supply. However, trade sources indicate th at there is no certainty as to how long such stock piles of scrap may be m aintained. Pier iron allocation in this area continues to be satisfactory and w ith the addition of another recondi tioned blast furnace, is expected to be sufficient for future operations. Shoes — The final estim ate for shoe output in the Eighth D istrict during April was slightly over 8.000.000 pairs. In recent m onths shoe output in this district has expanded som ew hat more than th at for the country as a whole. M ost factories are oper ating at high levels of capacity w ith much produc tion being for m ilitary needs. Prelim inary estim ates of E ighth D istrict output in May indicate th at high levels are being m aintained but th at output in May fell by about the usual seasonal am ount from the April level. On the basis of available figures May production of shoes in this area was about 20 per cent below^ April. W hiskey— Of the 60 distilleries in K entucky, 55 were in operation on May 30 as compared w ith 56 at the close of April. Production continues at high levels of capacity in m ost cases w ith output of high wines accounting for a considerable portion of total m anufacture. Recently, estim ated Government requirem ents for industrial alcohol were increased about 70 per cent, due in great m easure to proposed increases in syn thetic rubber output. It is expected th at distilleries in the U nited States will be alm ost entirely con Page 4 verted to the production of alcohol or high wines by January 1, 1943. P resent indications are th at plants may continue to produce beverage spirits until they receive Government contracts for, or until equipped to produce, alcohol for the w ar program . It is estim ated th at K entucky will lose more than $3,000,000 revenue annually coming from the pro duction tax on whiskey. T rade reports indicate th at a num ber of rectify ing stills are to be shipped into K entucky and attached to existing equipm ent thereby enabling distillers to produce high proof alcohol and also to redistill high wines produced by other plants. A G R IC U L T U R E General Conditions — Farm work in the E ighth D istrict is generally behind schedule this year. E x cessive rain during the first three weeks in May considerably delayed farm routine and the planting of crops. The relatively hot, dry w eather of late May an«d early June enabled farm work to go for ward with good progress but the heavy and contin uous rain recently has succeeded in further retard ing planting and necessitating some replanting. Some corn planting has been delayed and it seems probable th at this delay will bring about lower yields at harvest. Despite the unfavorable w eather, crop prospects and condition on June 1 were above average in m ost sections of the district. The rain which cur tailed planting and cultivating, aided the grow th of pastures, hay and small grains. T he oat crop in particular, is estim ated to be the best in some years reflecting both increased acreage and much higher yields per acre. F ru it prospects in general are con siderably below those of last year w ith peaches in particular being estim ated at considerably below last year’s production. Farm prices in the U nited States on May 15 aver aged parity, being 1.5 per cent above the level of a m onth earlier and 40 per cent above th at of May 15, 1941. Farm price increases in m ost E ighth D istrict states in May showed approxim ately the same gains as did those in the U nited States but in general were considerably higher than the U. S. average as com pared with a year ago. Cotton — Continued wetness retarded the grow th of cotton in the E ighth D istrict during much of May but in early June, especially in the more southern regions, the cotton crop made fairly good progress. In A rkansas, however, the prolonged rains and low tem perature retarded the crop more than in other areas. Certain sections report th at cotton has been planted and replanted as much as three tim es due to high w ater and it is expected th at abandonm ent in those areas will be much greater than usual. Planting in other areas is virtually complete. More sunshine is needed but the clear w eather in early June reduced weed grow th in fields and chopping is proceeding rapidly. The volume of sales of cotton in recent weeks has been declining and is far below the levels obtaining for corresponding dates a year earlier. Cotton prices declined in early June and on June 15 were well below the level of a m onth earlier. The price of 15/16 m iddling cotton on the M emphis m arket ranged betw een 18.30c and 20.20c per pound be tween M ay 16 and June 15, closing on the latter date at 18.56c per pound. Dom estic mill activity continues at record levels. For the year ending July 31, 1942, total cotton consum ption for the U nited States may reach 11,250,000 bales. Livestock — Receipts of livestock at the National Stock Yards in May, 1942, were 7 per cent greater than in April, but 1 per cent below those of May, 1941. The decline from a year ago was due entirely to sharply decreased receipts of sheep as cattle, hogs, horses and mules were in appreciably greater volume than a year ago. Despite the increased re ceipts in the past m onth, livestock prices were not greatly changed in the period. Average prices on hogs at the National Stock Yards betw een May 16 and June 15 ranged from $13.86 to $14.29 per cwt., closing on the latter date at $14.15. For the com parable period last year the range was from $8.96 to $9.89. Tobacco — Low tem peratures in the burley belt during m ost of May retarded plant grow th but dur ing late May and early June w arm er w eather and plentiful rainfall were conducive to rapid develop m ent of plants and a plentiful supply to set allotted acreage is indicated. T ransplanting of the crop wras practically completed by June 15 w here mechanical setters were used but in the hill country where hand transplanting is common, some of the crop still rem ains to be set out. The stand of burley is re ported as excellent and unusually free from insects. T ransplanting of Green River and stem m ing dis trict tobacco was virtually completed by June 10. The abundance of plants led to setting of practically full allotted acreage. W eather conditions in darkfired tobacco districts were varied during the past month. In the w estern section dry w eather delayed work and necessitated resetting on a very large scale but the crop was practically all in by June 10. Outlook in general is good but there have been some reports of insect damage. Setting of the one-sucker crop is completed w ith an unusually good stand. As a whole, the crop is considered about ten days ear lier than it was last year. COST OF L IV IN G A N D PRICES As of May 15 the cost of living in the United States was 0.8 per cent higher than on April 15 and 12.7 per cent greater than on May 15, 1941. In St. Louis the percentage increases from a month and a year earlier were respectively 0.2 and 13.3. Inas much as the retail price ceilings under the General Maximum Price Regulation did not take effect until May 18, the index for M ay 15 does not reflect the price freeze order except to the extent that retailers may not have advanced prices to levels they might have reached had the regulation and its application not been anticipated. To ascertain the immediate effect of the regulation a special survey was made on June 2 which indicated th at cost of living for the United States dropped 0.1 per cent from May 15 to June 2 while the St. Louis index remained unchanged. The stabilization of the index represented largely a balance between increases in prices of uncontrolled foods and decreases in prices of controlled items. Excluded from the price regulation are certain im portant groups of farm products. These excep tions make up a large proportion of food products in term s of typical consum er outlay at retail and account for possibly more than one-third of the total food outlay. Inasm uch as food at the present time represents approxim ately one-quarter of ty p ical family expenditures, the excluded items affect nearly 10 per cent of family living costs. It is pos sible that the cost of living may show some further rise as a result of price increases am ong the excluded commodities. However, it is probably true th at rises in the cost of living index will be much sm aller than have occurred from m onth to m onth in the past year. EM PLOYM ENT Total civil non-agricultural em ploym ent in A pril in the U nited States was 40,773,000 as com pared with 40,382,000 in M arch and 38,288,000 in A pril, 1941. In E ighth D istrict states civil non-agricul tural employment in April totaled 5,727,000 as com pared writh 5,668,000 and 5,292,000 a m onth and a year earlier, respectively. The percentage gain in the month for E ighth D istrict states was slightly more than th at for the country as a w hole and com pared with a year ago, employm ent in E ig h th D is trict states was appreciably higher percentage-w ise than that of the U nited States. In the p ast m onth Kentucky, M issouri and Tennessee all reg istered gains of 2 per cent or more. C om pared w ith a year ago, employment in A rkansas was up 25.5 per cent to lead all E ighth D istrict states. Page 5 C A SH F A R M IN C O M E A p ril C um ulative for 4 m onths 1942 1941 1942 1941 1940 B A N K IN G A N D FIN A N C E Demand for credit in the Eighth D istrict during May and early June continued to decline. Reports from numerous banks located in the Eighth District indicate that the demand for credit is decreasing in virtually all sections of this area and further de creases in loans are anticipated by most bankers during coming m onths. The decline in inventory volume, the running off of consumer instalm ent loans, and the stronger cash position of farmers, are listed as the prim ary causes of loan decreases. Sev eral sections report th at due to curtailed operations of various m anufacturing plants, borrowers who normally use relatively heavy lines of credit at this season are not borrow ing at all. The form ation of a V ictory Fund Committee for the Eighth Federal Reserve D istrict to direct the combined efforts of the securities and banking in dustries in this district to reach investors whose requirem ents are not fully m et through W ar Sav ings Bonds, was announced May 23 by Chester C. Davis, President of the Federal Reserve Bank of St. Louis and Chairm an of the Committee. The fol lowing members have been appointed to serve on the Com m ittee: Partner, Reinholdt & Gardner, St. Louis I s a a c A . L o n g , Vice-President, Mercantile-Commerce Bank & Trust Company, St. Louis C h a r l e s W . M oore, Partner, Smith, Moore and Company, St. Louis W a l t e r W . S m i t h , President, First National Bank, S t. Louis S i d n e y M a e s t r e , President, Mississippi Valley Trust Com pany, S t. Louis T o m K. S m i t h , President, Boatmen’s National Bank, S t . Louis H a r r y B. W a l l a c e , Chairman of Board, Cupples Company, St. Louis W i l l i a m C. D ’A r c y , President, D’Arcy Advertising Com pany, St. Louis E d w a r d H . H il l ia r d , J. J. B. Hilliard and Son, Louisville M. A m e s S a u n d e r s , M. A. Saunders Company, Memphis J a m e s H. P e n i c k , President, W. B. Worthen Company, Bankers, Little Rock F. R. M c G e o y , Jr., President, Bank of Greenwood, Green wood, Miss. C h a r l e s B. E n l o w , President, National City Bank, Evans ville, Ind. J o h n C. M a r t i n , President, Salem National Bank, Salem, 111. R u ssell G ardner, T he Com m ittee will work chiefly with large inves tors and will not duplicate or compete with the local or state W ar Savings Staffs. Similar committees have been set up in the other Federal Reserve Districts. Since the last issue of this Review, the Grant C ounty Bank, Sheridan, A rkansas, has become a m em ber of the Federal Reserve System. Page 6 ( I n th o u san d s of d ollars) A r k a n s a s ......... In d ia n a . .. K e n tu ck y . . M ississippi. M iss o u ri. .. T ennessee . $15,637 69,871 40,893 11,509 8,083 33,887 . 11,524 $ 7,526 48,944 26,650 7,575 4,208 21,843 7,437 $ 54,304 271,804 145,664 75,024 37,678 128,484 59,997 $ 29,745 175,561 94,738 53,822 22,735 82,000 40,064 $ 20,871 175,777 82,274 52,326 21,064 69,116 34,590 . . 191,404 124,183 772,955 498,665 456,018 R E C E IP T S A N D S H I P M E N T S A T R eceipts M ay, A pril, 1942 1942 C attle and C alv es. .,, . .105,0,69 97,695 H o g s ............................ . . .268,013 264,125 1,807 H orses and M ules. . 789 . . . 55,629 38,600 N A T IO N A L ST O C K Y A R D S S hipm ents M ay, A pril, M ay, M ay, 1941 1942 1942 1941 102,793 44,930 31,272 40,513 259,235 48,505 42,921 44,925 631 712 771 1,791 73,055 21,607 2,453 24,161 . . .429,500 402,227 435,795 78,437 110,230 115,813 W H O L E S A L E P R IC E S IN T H E U N IT E D ST A T E S B u re au of L a b o r S ta tistic s Ju n e Ju n e M ay Ju n e Ju n e 13,’42 comp, w ith (1 9 2 6 = 1 0 0 ) 13,’42 6,’42 16,’42 14,’41 M ay 16,’42 J u n e 14,’41 A ll C om m odities. . 98.4 F a rm P ro d u c ts . 104.3 99.5 O t h e r .................. 95.9 98.7 105.6 99.7 95.9 98.5 104.3 98.2 95.9 86.7 81.1 82.6 88.8 — 0.1% -0 + 1.3 - 0 - + 1 3 .5 % + 2 8 .6 + 2 0 .5 -r 8 .0 C O ST O F L IV I N G B u re au of L a b o r M ay 15, A pr. 15, M ay 15, S ta tistic s (1935-39= 100) 1942 1942 1941 115.1 U n ite d S ta te s ......... 116.0 10.2.9 St. L o u is .............. 115.7 115.5 102.1 M ay 15/42 com p, w ith A pr. 15/42 M ay 15/41 + 0 .8 % ’ + 1 2 .7 % + 0.2 + 1 3 .3 B u reau of L ab o r S tatistics (1 9 3 5 -3 9 = 1 0 0 ) M ay 12/42 com p w ith A pril 14/42 M ay 13/41 M ay 12,, 1942 U . S. (51 cities) . . ,. St. L o u is .............. L ittle R o c k ......... L o u is v ille ......... . M e m p h is ............ COST O F F O O D A p ril 14, M ay 13, 1942 1941 121.6 123.8 123.2 122.6 123.5 119.6 123.8 123.1 120.6 120.8 102.1 102.4 100.1 101.5 99.8 + + + + 1.7% -0 0.1 1.7 2.2 + 1 9 .1 ? + 2 0 .9 + 2 3 .1 + 2 0 .9 + 2 3 .7 I N D E X E S O F E M P L O Y M E N T IN M A N U F A C T U R IN G I N D U S T R I E S B Y M E T R O P O L IT A N A R E A S B u re au of L a b o r S ta tistic s M ar., F eb., M ar., M ar. ,’42 com p, w ith (1937= 10,0) 1942 1942 1941 F e b .,’42 M ar.,’41 E v an sv ille. . . . . . 82.0 103.0 110.2 117.2 , , 80.5 104.7 104.4 117.1 93.0 113.8 111.1 108.7 + — ++ 1.9% 1.6 5.6 0.1 ■— 11.8% — 9.5 — 0.8 + 7.8 B U I L D I N G P E R M IT S N ew C onstruction R epairs, etc. N um ber C ost N um ber C ost 1942 1941 1942 1941 1942 1941 1942 1941 (C o st in th o u san d s) E v a n sv ille . . . . L ittle R o c k . . . L ouisville M ay T o t a l s . . . A pril “ 34 31 81 110 157 413 641 22 67 307 654 352 1,402 1,496 $ 91 34 183 33 60.9 950 1,518 $ 74 296 532 1,063 963 2,928 4,722 120 142 52 228 221 763 848 120 97 48 287 187 739 755 $159 22 17 103 83 384 458 $ 95 99 58 131 236 619 710 V A L U E C O N S T R U C T IO N C O N T R A C T S L E T ( I n th o u san d s M a y /4 2 comp, w ith of d o llars) M a y /4 2 A p r.,’42 M a y /4 1 A p r.,’42 M a y /4 1 T o ta l 8 th D is t.. . $45,161 $39,681* $38,137 S o u rc e : F . W . D odge C orporation. *R evised. (K .W .H . in th o u s .) U n ite d S tates. 14% + 18% C O N S U M P T IO N O F E L E C T R IC IT Y No. of M ay, A pr., M ay, M ay, 1942 C ustom - 1942 1942 1941 com pared w ith ers* K .W .H . K .W .H . K .W .H . A pr., 1942 Afa.v, 1941 Evansville . . . . 40 3,484 L ittle R ock . . . 35 2,523 . 82 15,642 . 31 4,931 P ine B luff . . . . 19 742 . 131 74,696 338 102,018 * Selected in d u stria l custom ers. ( I n th ousands of to n s) + 3,855 2,424 14,671 4,870 776 70,259 96,855 5,669 2,537 13,478 4,048 1,099 56,369 83,200 — 10% + 4 + 7 + 1 — 4 + 6 + 5 — — + + — + + 39% 1 16 22 32 33 23 P R O D U C T IO N O F B IT U M IN O U S C O A L M a y ,’42 comp, w ith M a y /4 2 A p r./4 2 M a y /4 1 A p r.,’42 M a y /4 1 48,250 4,530 49,000 4,476 42,892 3,603 — 2% + 1 + + 12% 26 LOADS IN TERC H A NG ED FOR 25 RAILROADS AT ST. LO U IS M ay,’42 A pr.,’42 M ay,’41 First nine days June,’42 June,’41 F E D E R A L R E S E R V E O P E R A T IO N S D U R IN G M A Y , 1942 (Incl. Louisville, Memphis, L ittle Rock branches) Pieces Am ounts 5 m os.’42 5 m os.’41 649,629 490,128 148,503 137,038' 105,108" 43,748 ~ 30,081 S ou rce: Terminal Railroad A ssociation of St. Louis. W H O LE SA LIN G Lines of Commodities N et Sales D ata furnished by Bureau of Census, U . S. Dept, of Commerce. A utom otive Supplies..................................■ — 8 °/ D rugs and C hem icals...............................— 10. D ry G o o d s .................................................. ..■ — 5 Electrical Supplies.......................................■ — 25 F u rn itu re.........................................................— 15 G roceries.........................................................— 2 H ardw are.........................................................— 20 Machinery, Equipment and Supplies. ■— 5 Plum bing S u p p lie s .................................. .— 4 Tobacco and its P rodu cts.......................— 4 M iscella n eo u s................................................■ — 12 T otal all l i n e s * . . . ......................................•— 10 *Includes certain lines not listed above. + 84% -0+ 37 +35 —12 22 — + 15 — 23 +21 — 5 + 1 + 30 — 4 + -f + + + DEPARTM ENT STORES 5 m os.,’42 to same period ’41 1 9 18 5 16 + *3 + 41 + 16 Stocks on Hand Stock Turnover May 3 1 /4 2 comp. with M ay 31, ’41 Jan. 1, to May 31, 1942 1941 N et Sales M ay, 1942 compared with A pr.,’42 M ay,’41 Stocks M ay 31, 1942 comp, with M ay 31, 1941 May, 1942 compared with A pr.,’42 M ay,’41 1.38 1.37 + 65% + 40% Ft. Smith, A r k .. . + 4% + 2 1.47 1.70 +20 10 0L ittle Rock, Ark. + 45 — 1 — 30 — 8 E. St. Louis, 111. 1.48 1.72 + *3i Quincy, 111............ —11 — 18 + 9 Evansville, I n d .. . - 0 - — 9 + 9 2.10 1.55 —'15 — 18 •+ 65 Louisville, K y .. . . ■ + 5 1.83 1.42 75 — 4 St. Louis, M o .. . . — 17 1.36 1.09 57 — 25 Springfield, M o .. . — 9 ±1 -0Jackson, Tenn. . . — 6 — 26 1.45 1.29 + 19 40 M emphis, T en n .. . + 3 + 1 1.34 1.35 59 *A11 other cities. . — 6 — 15 + 5 1.77 1.42 64 —1 1 — 5 8th F. R. D istrict + 15 *E1 Dorado, Fayetteville, Pine Bluff, A r k .; A lton, Harrisburg, Mt. Vernon, 111.; Vincennes, I n d .; Danville, H opkinsville, Mayfield, K y.; Chillicothe, Mo. Trading days: M ay, 1942— 25; April, 1942— 26; M ay, 1941— 26. Outstanding orders of reporting stores at the end of May, 1942, were 33 per cent greater than on the corresponding date a year ago. Percentage of accounts and notes receivable oustanding M ay 1, 1942, collected during M ay, by c itie s : Instalm ent E xcl. Instal. Instalm ent E xcl. Instal. A ccounts A ccounts Accounts A ccounts Q u in cy........... ..26% 48% 42% Fort S m ith .. St. L o u is. . . . 26 64 43 Little R o ck . . 51 52 Other c itie s. . 13 L ouisville 8th F. R. D ist. 23 56 47 M emphis . . . . 27 + IN D E X E S OF DEPARTM ENT STORE SALES AND STOCKS 8th Federal Reserve District (1923-1925 average = 100) May, 1942 April, March, M ay, 1942 1941 1942 . 108 Sales (daily average), U n a d j u s te d .... . 108 Sales (daily average), Seasonally adjus 131 Stocks, U nadjusted....................................... '130 Stocks, Seasonally a djusted......... ............. Trading days : M ay, 1942— 25; April, 1942— 26 SPECIALTY STORES N et Sales May, 1942 5 m os.,’42 compared with to same A pr.,’42 M ay,’41 period ’41 125 105 120 130 105 120 79 125 115 122 113 78 M ay, 1941— 26. Stocks on Hand M ay 31,’42 comp, with M ay 31,’41 CHANGES IN P R IN C IPA L ASSETS AND L IA B IL IT IE S FEDERA L RESERVE BANK OF ST. LO U IS June 17, 1942 Industrial advances under Sec. 13b............ $ 8 Other advances and rediscounts.................. 395 U . S. securities......................... j ......................... 120,525 Total earning a sse ts....................................... 120,928 Change from May 20, June 18, 1942 1941 + + + T otal reserves....................................................... 661,368 T otal deposits. . . ......... ...................................... 419,525 F . R. N otes in circulation.............................. 361,106 + In d u s tria l com m itm ents u n d e r Sec. 1 3 b .. r- 2,028 -0220 4,155 4,375 5,173 2,025 + :11,312 134 R A TE S O F T H IS B A N K F O R A C C O M M O D A T IO N S U N D E R T H E F E D E R A L R E S E R V E ACT Advances to banks, secured by direct obligations of the United States, under paragraph 13 of section 1 3 ..1 % per annum Advances to member banks, secured by direct obliga tions of the U nited States or by such Government guaranteed obligations as are eligible for collateral, under paragraph 8 of section 1 3 ............................................1 % per annum Rediscounts and other advances to member banks un der sections 13 and 13a......... ....................................................1 % per annum Advances to member banks under section 1 0 (b ) ................ 15^% per annum Advances to individuals, firms, and corporations, other than banks, secured by direct obligations of the U nited States, under paragraph 13 of section 13............3 % per annum Industrial advances to member banks, nonmember banks, and other financing institutions under sec tion 13b: # M % to (a) On portion for which such institution is obligated I l /l 2 % per annum (b) On remaining portion — N o charge to financ ing institution. Federal Reserve Bank w ill retain interest collected from borrower. Advances to established industrial or commercial (2 J ^ % to businesses under section 13b................................................ (5 % per annum Commitments to established industrial or commercial businesses under section 1 3 b .......................... ........................ 10% to 25% of the loan rate charged borrower with a minimum rate of ^ % per annum. Commitments to member banks, nonmember banks, and other financing institutions, under section 13b................ 10% to 25% of the loan rate charged borrower with minimum rate of Y\ % per annum provided: that no commitment w ill be given on loan on which bor rower is charged over 5% per annum. P R IN C IP A L R E S O U R C E A N D L IA B IL I T Y IT E M S O F R E P O R T IN G M E M B E R B A N K S Change from June 17, May 20, June 18, (In thousands of dollars) 1942 1942 1941 Commercial, industrial, agricultural loan s.$236,162 ■ — 16,855 + 8,847 Open market paper.............................................. 19,210 — 2,492 + 504 Loans to brokers and dealers......................... 3,712 + 134 — 1,317 Other loans to purchase and carry securities. 9,944 ■— 201 — 3,021 Real estate le a n s.................................................. 59,511 + 226 — ’274 Loans to banks....................................................... 121 — 87 — 713 Other lo a n s.............................................................. 71,888 — 1,627 — 2,936 U . S. Treasury Certificates of Indebtedness 29,116 + 1 5 ,2 2 0 + 29,116 Treasury b i l l s ......................................................... 44,354 — 23,928 + 43,357 Treasury n o t e s ....................................................... 60,464 + 1 8 ,6 3 3 + 25,419 U . S. bonds.............................................................. 276,385 — 55 + 68,250 Obligations guaranteed by U . S. Government 32,508 — 23,040 ■ — 36,746 Other s e c u r it ie s .................................................. 121,205 + 5,361 + 5,042 Balances with dom estic b an ks....................... 211,688 + 2 4 ,3 7 0 + 19,360 +114,071 Demand deposits — adjusted*......................... 669,521 + 1 7 ,1 1 6 Time d e p o s its ......................................................... 184,137 + 5,818 — 7,406 U . S. Government deposits.............................. 12,417 ■ — 23,211 — 7,202 Interbank deposits................................................ 508,935 + 2,089 + 84,640 *Other than interbank and Government deposits, less cash items on hand or in process of collection. Above figures are for 24 member banks in St. Louis, Louisville, M em phis, L ittle Rock and Evansville. Their resources comprise approximately 75% of the resources of all member banks in this district. (In thousands of dollars) 1.36 M en’s Furnishings . + 1% — 8% +35% +110% B oots and S h o e s .. . — 8 +10 +25 + 55 3.60 Percentage of accounts and notes receivable outstanding M ay 1, 1942, collected during M a y : M en’s F u rn ish ings....................... 41% B oots and S h o e s ........................ 45% (I n thousands of dollars) Checks (cash item s) handled................................ 5,638,330 $1,808,223,980 104,098 42,760,841 Collections (non-cash item s) handled................ Transfers of fu nds................ ...................................... 5,062 557,187,014 Currency received and counted.............................. 10.,734,964 40,781,728 Coin received and counted....................................... 12,422,408 1,044,448 Rediscounts, advances and com m itm ents......... 23 2,686,500 N ew issues, redemptions, and exchanges of securities as fiscal agent of U . S. Govt., etc. 242,468 113,387,076 B ills and securities in custody — coupons clipped 11,525 ............................... + + + + 8 360 19,179 19,547 + 94,408 2,083 + + :116,569 + 1,665 D E B IT S T O I N D I V I D U A L A C C O U N T S May, April, May, M ay,’42, comp, with 1942 1942 1941 April,’42 M ay,’41 El Dorado,. . . ..A r k .$ 7,670 “ Fort Sm ith,, , . 18,185 H e le n a ,........... 1,851 “ L ittle Rock, . . 71,278 “ Pine Bluff, 21,454 Texarkana,-Ark.-Tex. 23,476 E.St.L.-N at.S.Y .,111. 70,351 “ 12,506 E vansville,, 36,181 Louisville, . . . K y . 247,562 Owensboro, 7,589 Greenville, 5,555 . . . Mo. 1,030,126 “ 3,069 “ Springfield, . . 23,553 . 191,086 1,771,492 $ 7,293 18,089 1,877 62,966 17,076 26,921 66,592 11,788 41,305 224,989 7,433 5,977 805,313 3,078 21,572 201,777 1,524,046 $ 6,314 12,923 1,627 47,011 7,858 8,922 52,566 11,107 41,917 244,098 6,465 5,743 839,620 2,568 21,069 184,567 1,494,375 + 5% + 1 — 1 + 13 + 26 — 13 + 6 + 6 — 12 + 10 + 2 — 7 + 28 -0+ 9 — 5 + 16 b 21% - 41 - 14 - 52 -173 -163 - 34 - 13 - 14 + 1 -4- 17 - 3 4- 23 Hb 20 h 12 + 4 + 19 COMMERCIAL F A IL U R E S IN EIG H TH F. R. DISTR IC T M ay,*42 N u m b e r ................ 22 L iabilities.............. $129,000 Source: D un and Bradstreet. (Completed June 25, 1942) A pr.,*42 M ay,*41 28 $172,000 33 $234,000 M ay,*42 comp, with A pr.,’42 M ay,*41 — 21% — 25 — 33% — 45 Page 7 INDUSTRIAL PRODUCTION N A TIO N A L SUM M ARY O F CO N D ITIO N S BY BOARD OF GOVERNORS OF FEDERA L RESERVE SYSTEM Industrial activity continued to advance in May and the first half of June. Commodity prices showed little change after the middle of May when the general maximum price regulation went into effect. Retail trade declined further in May but increased somewhat in the first half of June. Federal Reserve monthly index of physical volume of pro duction, adjusted for seasonal variation, 1935-39 average = 100. Latest figures shown are for May, 1942. Latest figure 176. DEPARTMENT STORE SALES AND STOCKS Production — Volume of industrial production increased in May and the Board’s seasonally adjusted index advanced to 176 per cent of the 1935-39 average, as compared with 173 in April and 171 during the first quarter of this year. Output of manufactured products continued to increase, reflecting chiefly further growth in production of war materials, while mineral pro duction showed a seasonal rise. The largest increases in May, as in other recent months, were in the machin ery and transportation equipment industries which are now making products chiefly for military purposes. The amount of copper smelted rose sharply and output of chemicals continued to advance. Activity in the automobile industry, which since January had been retarded during the conversion of plants for armament production, showed an increase in May. Steel production was maintained at about 98 per cent of capacity in May and the first half of June. Lumber production increased seasonally and activity at furniture factories, which usually declines at this time of year, was sustained at a high rate. In industries manufacturing textiles and food products, output continued large in May. Gasoline production declined fur ther, however, reflecting the effects of transportation difficulties. There was a further marked decrease in paperboard production which, according to trade reports, reflected a slackening in demand. Coal production was sustained at a high rate in May and output of crude petroleum increased somewhat, following considerable declines in March and April. Copper production and iron ore shipments rose sharply to new record levels. Federal Reserve m onthly indexes of value of sales and stocks, adjusted for seasonal variation, 1923-25 average = 100. Latest figures shown are for May, 1942. MEMBER BANK RESERVES AND RELATED ITEMS BILLIONS OF DOLLARS BILLIONS OF DOLLARS G RESERVE FUNDS r RESERVE BALANCES I i 1*-----1------- V*--- i I2 L atest figures shown are for June 10, MEMBER BANKS IN 101 LEADING CITIES BILLIONS OF DOLLARS Distribution — Retail trade declined further in May. Department store sales were about 7 per cent smaller than in April and sales by mail-order houses showed a similar decrease. In the first half of June department store sales increased somewhat. Carloadings of revenue freight increased in May by about the usual sea sonal amount. There was a further substantial decline in the number of cars loaded with merchandise in less than carload lots, reflecting the effect of Federal orders raising the minimum weights for such loadings. Increases were reported in shipments of most other classes of freight, particularly coal, ore, and miscellaneous freight. AND DEPOSITS W ednesday figures. 1942. Value of construction contract awards increased sharply in May, following a decline in the previous month, and was close to the record high level reached last August, according to figures of the F. W. Dodge Corporation. Awards for publicly financed work increased in May and, as in other recent months, constituted around three quarters of the total. Awards for residential build ing continued to decline. I Commodity Prices —■Prices of most commodities both at wholesale and retail showed little change after the general maximum price regulation went into effect around the middle of May. Declines occurred in prices of cotton and some other agricultural commodities, and prices of some industrial com modities were reduced to conform with the general order that prices should not exceed the highest levels reached in March. Action was taken to exempt most military products from the general regulation and to allow for special treatment of women’s coats and dresses and a few other nonmilitary items. Bank Credit — During May and the first half of June, the Federal Re serve Banks purchased about 200 million dollars of United States Govern ment securities. Additions to member banks’ reserves from this source, however, were offset by continued withdrawals of currency by the public. Excess reserves fluctuated around 2,700 million dollars during the six-week period. Reporting member bank holdings of United States Government securities increased by nearly a billion dollars during the period. Two-thirds of the increase came in the week ending May 20 with delivery of new Treasury 2 per cent 1949-51 bonds, and the balance represented mainly increased bill holdings. Loans declined somewhat in the period. Adjusted demand deposits continued to increase, while United States Government deposits were reduced. W ednesday figures. Commercial loans, which include in dustrial and agricultural loans, represent prior to May 19, 1937 so-called “ Other loans” as then reported. L atest fig ures shown are for June 10, 1942. Page 8 United States Government Security Prices — Prices of taxable United States Government bonds, which declined by about Yt point at the time of the early May financing, subsequently regained that loss and during the first half of June remained steady.
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