Full text of Review (Federal Reserve Bank of St. Louis) : July 27, 1920

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FEDERAL RESERVE
M O N TH LY

G EN ERAL

B U S IN E S S A N D

IN

FEDERAL

BANK O F ST. LOUtS
R E P O R T

ON

A G R IC U L T U R A L

R E SE R V E

D IS T R IC T

C O N D IT IO N S
N o. 8

R EL E AS ED FOR P U B H C A T t O N ON AND AFTER THE A FT E R N O O N OF JULY 2 7, 1 9 2 0
WtLLtAM
C H At R M A N

OF

TH E

BOARD

A C T IV 1 T Y in .general business in this district
during the past month has been well sus­
tained, the total volume being close to the preceding
high levels, and well in excess of the corresponding
period in 1919. In describing the situation, however,
it is necessary to segregate to a greater extent
than heretofore, some lines show ing a reactionary
tendency, others holding steady, while a few record
continued broad gains such as have marked their
progress through the past eighteen months.
More sensitiveness is noted in the great markets
for staples, and it daily becom es clearer that the
period of extravagant buying is over. Due to the
high cost of com m odities, exalted interest rates, the
car shortage and unwillingness on the part o f the
public to buy regardless, orders for merchandise are
being much more cautiously placed. There is a
feeling that prices may sustain a sweeping revision
downward, and nobody wants to find himself heav­
ily stocked with goods should this thing happen.
( )n the other hand the improvement in crops, which
was ushered in with the month of June, has con ­
tinued to date, and there is every prospect of the
country producing an abundance of everything
needed for personal consumption at home, with a
libera! margin left over for sale abroad. This has
served to bolster la g g in g confidence, and cancella­
tions of orders in certain lines o f trade, which were
somewhat numerous in June, have greatly decreased
since the first of July, and, in addition, there have
been a fair number o f reinstatements and requests
to ship goods held back.
As indicated by the reports from retailers, hotel
keepers, restaurants, places o f amusement and sim­
ilar agencies, purchasing pow er of the public has
not declined in any appreciable degree. The num­
ber of patrons has apparently suffered no decrease,
despite the fact that many persons are away on
vacations, in the larger centers of population. Sea­
sonable weather has assisted dealers in wearing
apparel, with the result that sales during the past
m ore than equalize the depressed
period caused by the unusually high temperatures
early m the summer, and bring total sales well over
of. the same period last year. It is noted that
^selling is being done more closely in department
s ores and smaller retail shops, and special sales are
emg widely advertised and conducted in all parts



McC.
A ND

MART! N,
FE DE RA L

RESERVE

AGENT

of the district. Prices involved in these sales show
some material reductions, but generally speaking
retail values, which are always last to respond in
readjustment movements, are full steady with a
month ago.
A review of prices as a whole develops more
specific declines than recorded in any single month
for a long while, but the changes hardly affect
articles which will immediately be felt in bills covering living cost. Since June 15 there has been a
perpendicular drop in cereals, both futures and the
cash article. For instance, July corn dropped from
$1.78 on June 15 to $1.50 on July 18. September
corn fell from $1.69 to $1.48; Decem ber corn from
SI.48 to $1.37, and July oats from $1.03 to 88c in
the same period. No. 2 hard wheat declined from
$2.88 to $2.76 during the month, the break com ing
after July 15, on which date future trading in wheat
was reinstated on the grain exchanges, after having
been suspended for nearly three years. Flour, how ­
ever, has thus far not follow ed the break in wheat,
though lower prices are predicted. Feeds for ani­
mals have eased o ff somewhat, but such declines
have not been reflected in dairy products, which
hold very strong. Cash corn is off as much as 40c
a bushel from the recent high mark.
An easier trend is noted in sugar and coffee, but
groceries generally continue as expensive as ever.
T o date the pack of canned goods has been light,
due to light orders placed, and the high cost of
credits and materials. Manufacturers predict stiff
prices through the season. Meats, vegetables, pre­
pared cereals, dried fruits, canned and salt fish and
other staples show little change in price for the
month.
In the classification of articles for wear, price
reductions have been confined chiefly to goods han­
dled in special sales. Regular lines of standard
goods have not fluctuated in price, save in rare
instances. Hardware and metal goods show an
upward trend, with tools, sporting goods and other
articles very scarce.
Collections in the district vary in efficiency, with
a m ajority of the interests reporting com plaining of
less promptness in settlements than heretofore.
Requests for extensions are more frequent to the
South, where slowness in the movem ent of cotton

continues to cut a hgurpf Retail collections are
reported fair to good. '/Failures in the district in
June showed a rather sharp increase, the total being
34, involving liabilities of $2,283,002, against 13 with
liabilities of $61,243 in May, and 15 with liabilities
of $351,947 in June, 1919.
There has been a well defined slowing down in
the autom obile industry. Sales o f new cars, both
expensive and cheap, have fallen off, and it is pos­
sible to secure delivery of the more popular makes
in shorter order than at any time in several years.
Transportation has picked up during the past
thirty days, railroad oMcials reportng the general
m ovem ent well in excess of the same period last
year. Th e glut in leading terminals of the district
has been relieved to a large extent, and freight is
being m oved in and out with efficiency about equal
to that existing at the time the roads were returned
to private control. There are still, however, numer­
ous complaints on the part of shippers, and the
aspect of the car shortage situation is not reassur­
ing. Considerable apprehension is felt in agricultural

sections relative to ability to secure equipment for
handling the crops, and farmers are making such
preparation as they may fo r a delayed movement
o f their products.
The volum e o f passenger traffic in June and early
July o f roads in this district will set an entirely new
record. Vacation travel is o f record proportions,
and taxing the facilities o f the carriers to handle it.
T he various lines handling this business report a
scarcity o f sleeping car equipment. A n unusually
heavy demand for currency at the banks is ascribed
to requirements o f vacationists.
Financial institutions and bond houses report
liberal counter purchases o f L iberty Bond issues,
including many o f small denom inations, indicating
a disposition on the part o f the public to take advan­
tage o f the low prices o f these securities for invest­
ment purposes.
The per capita circulation in the United States
on June 1 was $56.99, against $56 on May 1, and
$54.29 on June 1, 1919.

M A N U F A C T U R IN G
The past month has on the whole proved a pros­
perous one for manufacturers in this district. W hile
the placing o f orders for future delivery has been
notably more cautious, it is apparent that in some
important lines production has not caught up with
the demand. Many plants have work ahead which
will keep them goin g at their present pace well into
the fall. W hile the scarcity of freight cars is still
keenly felt, the improvement in the transportation
situation has permitted of shipping out the greater
part o f accumulations occasioned by the switch­
men's strike. So far as can be learned, there is no
lack o f labor, skilled or unskilled.
In certain
instances plant operation has been curtailed, and
there have been temporary shut-downs, the latter
being due, however, to inability to obtain raw mate­
rials or fuel. This district has had no indefinite
suspensions, as in the case o f textile plants in the
East. Some backwardness in the matter of collec­
tions is reported, but nothing of a serious sort.
Boots and Shoes— A fter a period o f hesitation
this industry seems to be sw inging to a more cer­
tain basis. Important manufacturers and distrib­
utors continue to exhibit heavy gains in volume and
dollar value over the corresponding period last year,
and their business is generally steady with a month
ago. Cancellations for a while were formidable,
amounting for the whole country to about 5 to 8
per cent, but not more than 5 per cent in this dis­
trict. Since July 1 requests for cancellations have
decreased, and a number of reinstatements have
been received. Disturbed psych ology o f country
merchants, due to the propaganda for low er prices,
is ascribed as the main cause for cancellations. Raw
materials, notably leather, are much more plentiful,
and there is ample labor. N o price changes have
occurred during the past month, and none is looked
for in the near future. R eports relative to collec­
tions vary somewhat, ranging from g ood to fair.
One large manufacturer considers his collections in
the past thirty days poorer than at any time in
twenty months.



Woodenware— Orders with most interests en­
gaged in this line are still in excess o f goods ready
for delivery, and prices hold very strong. Recent
labor difficulties have been adjusted, and it is ex­
pected that production will shortly catch up with
the demand.
Candy— Business with makers o f confectionery
continues brisk, the month o f June show ing further
broad gains over that month in 1919. July and
August are normally quiet m onths in this line, con­
sumption running less to candies and more to cold
drinks, ice cream, fruits, etc. Prices hold steady for
all grades, the easier sugar market thus far failing
to produce any change in selling quotations on
sweets. Raw materials generally are easier to ob­
tain, and no com plaints on the score o f labor are
heard
Manufacturers say the outlook for fan
trade is good , having been much im proved by the
better outlook for crops.
Drugs and Chemicals— AH interests reporting
indicate continued im provem ent in their business.
Increases o f from 15 to 40 per cent over the same
month last year are shown, and, as compared with
the preceding month this year, sales vary from a
decrease o f 2 per cent to a gain o f 2 ^ per cent.
Prices are in the main steady, with som e advances
and no declines recorded. C ollections are good to
excellent. Certain good s are still scarce,
erally supplies o f both finished and semi-Anished
materials are arriving at closer parity with demand.
Clothing— M anufacturers and distributors com
plain that positive expectations o f low er prices b)
the public have adversely affected their business.
Retailers are show ing hesitancy about buying, esp^
cially w oolen clothing. W h ere m an u factu rers have
accumulations o f goods they are selling at consi
erable reductions in price in order to clean up. y "
the other hand, they are asking steady to highc
prices for good s manufactured to order for fall an
winter wear. T he chaotic status o f the silk
w oolen markets has been largely offset as a distur ing factor in cloth in g b y the im proved crop P**^s

pects. Collections have fallen off a bit, and average
only fair.
Electrical Supplies— Scarcity and high prices of
raw and semi-Anished materials are holding down
the volume of business to some extent, but the
demand continues urgent and broad for virtually
everything in this classification. There has been a
marked grow th in the use o f small m otors for
domestic appliances, w hich has favorably affected
many manufacturers.
In numerous specialties
orders are far in excess o f supplies, this being espe­
cially true in things used in telephone and telegraph
operation. C ollections are good.
Iron and Steel Products— Prices rule stronjg to
higher under an enorm ous demand and restricted
output. In the general run of raw materials there
is an upward trend in values, especially metal­
lurgical coke, which is at record high levels in this
territory. P ig iron is quiet, but very Arm at recent
quotations. Foundries m aking steel and iron cast­
ings have orders booked which will occu py their
capacity for several m onths to com e. Building ma­
terials, tubular good s and tank plates are active,
and the scarcity of nails has assumed the propor­
tions of famine in some sections. Business of farm
implement makers and dealers has picked up mate­
rially with the im proved crop prospects.
Stove
works are show ing large increases over last year,
and report indications for prosperity during balance
of the season. C ollections in all these lines are
good.
Flour— Stolid apathy prevails in the Hour market,
with buyers and sellers wide apart in their views,
and the form er lookin g for low er prices. T h e heavy
decline in wheat since resum ption o f future trading
has been a dem oralizing factor. T h e volum e o f
business done by local mills during the past month
is far under the total for the corresponding period
in 1919. E xport buying is disappointing, both in
character and quantity. T h e demand from Europe
centers principally in clears and low grade flours,
which are scarce. Stocks are generally large, and
sentiment seems to favor low er prices. M illers say
supplies in the South are light ow in g to deferred
buying, and look to the necessity o f replenishing

in that section as a means of im proving their busi­
ness. N o price changes w orthy of note occurred
during the past month.
Lumber— T he decline in Southern yellow pine
prices has been checked, and since July 1 there has
been a material stiffening in the market. More
inquiries have been received, many of which have
resulted in the placing of orders. Traveling sales­
men report retail yards in bad need o f supplies, with
many beginning to purchase. Saw mills to the
South, which had been idle, due to high water, are
again at work. H ardw ood is relatively slow , not
much im provement in the demand being noted.
Consum ers are busy, but disposed to use what
stocks they have. Car oak is an exception in the
dull hardw ood situation, both railroad and indus­
tries being in the market for this material. C ollec­
tions are backward, and the car shortage is hamper­
ing business.
Fire Clay Products— There has been a falling off
in orders as com pared with the past few months, but
business still runs well ahead of last year. Manu­
facturers are experiencing considerable difficulty in
the matter o f obtaining raw materials, and fuel is
scarce and expensive. Slow ing down of operations
in steel mills and blast furnaces is causing a slack­
ening o f new buying in the refractories market.
Provisions— In the meat packing industry rather
m ixed conditions exist. Some products have ad­
vanced and others declined, with the average of
prices about steady with a m onth ago, but about
15 per cent under last year at this time. The export
demand fo r fats has fallen off materially, but do­
m estic consum ption is heavy. Collections are re­
ported fair.
M i s c e l l a n e o u s — In such lines as furniture, coop ­
erage, rope, bags, tobacco and glass, an active busi­
ness is being maintained, though buying is m ore
discrim inating than heretofore. T he tight credit
situation has a tendency to hold dow n orders to
nearer actual requirements than has been the case
for a lon g while. Collections are not uniform ly sat­
isfactory, especially to the South, where delayed
m arketing o f staple crops has delayed settlements.

W H OLESALE
certain sections o f the district are backward. E xten­
W hile som e hesitation on the part o f buyers is
sions are being asked by custom ers usually able to
noted in certain lines, due chiefly to anticipation o f
borrow from the banks. T h e principal item mak­
lower prices and the stifl m oney market, business
ing for optim ism is the brightened crop prospects.
generally is active and in great volum e. H eavy
T h is factor is less felt in the South than through
average gains over the correspon din g period a year
the northern and m ore typically grain areas o f the
ago are the rule. T h e closin g weeks o f June were
district. W herever possible, merchants are endeav­
marked by rather heavy requests fo r cancellation
orin g to liquidate their stocks, and are b y no means
and hold-ups o f orders for shoes, dry g ood s and
wearing apparel, but since July 1 the num ber of
purchasing with the freedom w hich has character­
such requests has decreased, and there have been
ized their operations during recent months. Prices
a number o f reinstatem ents o f orders cancelled.
w ith but few exceptions hold steady to strong.
Collections have slow ed dow n to som e extent, and
R E T A IL
have been in progress. W h ile the purchasing pow er
The course o f retail distribution throughout the
o f the public has not decreased m any perceptible
district during the past m onth has been m ore
degree, shoppers are m ore insistent upon getting
strained and labored. In order to maintain the pace,
the w orth o f their m oney in both quality and quan­
price concessions have been necessary in certain
tity. Seasonable weather and pretty general em ­
hnes, notably w earing apparel, and num erous sales



ploym ent have helped matters in the cities, while
in the country the outlook for and realization o f
g o o d ly agricultural yields have stimulated buying.
Thus far there has been no noteworthy recession
in prices.
Foodstuffs continue very expensive,
though abundant, and fuel is established at higher
levels than heretofore. Flour, coffee, sugar and a
few other staples are easier as com pared with the
peak levels o f the season, but otherwise things
g o in g into the daily pabulum are costly as ever.
R eports of leading department stores show enor­
m ous gains over the same period last year, one
as h igh as 40 per cent, while, as com pared with the
p receding month this year, business was steady to
10 per cent better.
In these emporiums, silks,

leather good s, some ready-to-w ear clothing and no­
tions are lower, but prices in the main are Arm. In
St. Louis tw o leading departm ent stores have re­
cently arranged for largely increased space to
accom m odate actual and expected grow th in their
business. Sporting good s arc scarce and active.
A utom obile accessories have slow ed down some­
what, but general hardware tines are m oving well,
and difficulty is experienced in keeping stocked with
many standard articles. Jew elers, while experienc­
ing seasonal quietness, report business well over
last year, and prices unchanged. Generally collec­
tions are not as satisfactory as earlier in the year,
but are still described as fair to good .

A G R IC U L T U R E
T h e im provem ent in crops which began with the
arrival of seasonable weather about June 1, has
persisted up to this time, and prospects in the district now are considerably more hopeful than in the
initial stages o f the season. H arvesting o f winter
wheat is rapidly nearing com pletion, and, while
early returns from threshers seem to bear out the
G overnm ent's disappointing estimate as to quantity
in states of the Eighth District, quality is pretty
uniform ly high. Seeding of corn was pushed under
auspicious conditions, and weather has permitted o f
cultivation, so that in most of the important producing areas fields are clean, and the plant is making g o o d progress. Oats are fully bearing out recent
optim istic estimates, and the hay crop bids fair to
be the most satisfactory ever raised in this region.
P otatoes are alm ost universally doing well. Replies
to questionnaires addressed to farmers and country
m erchants in scattered sections of the district show
pastures in prime condition, and vegetable gardens
thriving. Small fruits turned out beyond expectations, and apples and peaches will make a relatively
satisfactory show ing, though considerably under
som e preceding years. Reports from Arkansas lead
to the belief that rice may make a record yield. Live

stock is described as being in unusually good condii
tion, but the number o f animals in som e localities
is considerably less than a year ago. A large majority o f farmers in K en tu cky. Tennessee and Missouri reporting on tob acco say the crop is good. In
areas where wheat has been harvested labor has
been much more plentiful than had been anticipated.
Generally in the agricultural districts there is less
com plaint o f shortage o f farm help, though it is
agreed that w ages are abnorm ally high, and efficiency is not uniform ly excellent.
The United
States Departm ent o f A griculture makes the combined condition o f all crop s in the seven states of
;
this district (10 0= a verage) 95.8 per cent as of July
1. Seasonable weather is im proving the cotton
I
crop, and latest reports indicate less disability in
the w ay o f grassy fields and w eevil than in h
other sections o f the cotton belt. T h e latest Government reports on cotton in states o f this district
indicate excellent progress, especially in Arkansas,
where a large crop is expected. M em phis reports
that 95 per cent o f the m oney needed for the growing cotton crop has alreadv been used, and that only
5 per cent more need be* em ployed to bring it to
maturity.

The U. S. Department o f A griculture, in its report as o f lulv 1. gives the con dition o f winter
wheat in five states o f this^district as fo llo w s :
Condition
July 1
1920 lOyr. av.
m :,. -

^
.............................................................67
......................................................... 60
Kentucky........................................................ ^
Missoun..........................................................75
.............................................. 75
Tennessee.
*In thousands of bushels—!. e., 000 omitted.

^
77
79
34

79
83

Forecast 1920
from
J u ly l June!
1919
condition
Bushels*
28.392
27.752
57,800
20.665
21.009
45,792
6.274
5.825
12 .0 2 9
31.698
29.585
57.699
4.134
3.803
7.290

Dec. Estimate Price per bu.
July 1
Syr. av.
1920
1919
Bushels*
40.345
258
38.183
259
1 0 .3 1 6
273
35,161
258
8 035
288

cents
cents
219
219
2 2 2 *.
216

232

T he U. S. Department o f A griculture, in its report as o f lulv 1, gives the con dition o f corn in
the seven states of this district as fo llo w s :

Artrancac

Condition
Forecast
Final Hs!.
Price per bu.
1920__________ July
1
1920 from ____ lulv 1
% ofl9 1 9 Acres*
1920 lOyr.av. Ju lylcon d.
1919 5 yr. a^
19201919
o^
Tnn
^
Bushels*
Bushels* Bushels*
cents
ccnts
.........................................................................^

^

........................................................................... ^

79

....................................... g ?
K en tu cky....................................... 9 6
3 .1 6 8
M!ss<ss:pp!...................................... 93
3.701

Missouri........................................................................... 1 1 5
Tennessee....................................... 9 3
*In thousands— i. e., 000 omitted.



6 .6 1 9
3 .0 2 2

84

84
85

73
82
83

84

S O '9 4 *

4 8 .7 2 6

4 9 .7 0 2

220

197

2 8 4 ,1 2 5

3 0 1 .0 0 0

3 4 7 ,5 3 7

183

174

1 6 9 ,8 3 6
87

84

8 6 ,1 7 0

59 438

1 7 5 ,7 5 0

1 7 8 .1 4 0

8 2 .5 0 0

59 700

82

1 7 9 J 1 0

!5 5 !4 1 2

88

7 1 9 9 4

74 750

180
213

199

63 448

234

201

1M 9

182

218

194

171 5 2 4

^

^

177

9 9 .4 8 5

8 ^ 7 9 (1

2 '"

^

LABOR
The predicted record shortage of labor for harvest and general agricultural operations this season has not been veritied in anything like the magnitude suggested. On the contrary, where wheat
has been harvested and other crops garnered, there
has in general been ample hands for handling the
work. In only a relatively few localities have farmers suffered from lack of help. In industrial and
genera) tines tabor is also reported more plentiful.

surplus workers in this direction, which has largely
relieved existing deficiencies. W ages remain about
stationary with a month ago, except in segregated
instances, where advances are reported. There have
been minor strikes in the district, the m ost serious
of which embrace the building trades in St. Louis,
Officials of labor unions report a grow ing tendency
toward thrift and saving among their members. T o
^ e South agricultural tabor is less abundant than

Actual unem ploym en t m tins d!Strict is n egligible,

.

Federal and State commissioners reporting that idleness com ing under their observation thus far is
voluntary or due to strikes. Closing down of or curtailment at Eastern plants has resulted in a drift of

,

-

^

,

elsewhere m the dtstnct. hm ploym ent agencies
tind no improvement in the supply of domestic help,
and lack of this variety of labor is acute in the smaller towns and rural districts.

C O M M O D IT Y M O V E M E N T
Receipts and shipments of important com m odities at St. Louis during June, 1920 and 1919.
and May, 1920. as reported by the Merchants Exchange, were as follow s:
--------------------- Receipts--------------------------------------Shipments-----------------May. 1920
June. 1920
June, 1919
May, 1920
June, 1920
June, 1919
F]our, barrels ........................... .. 232.490
Wheat. bushe!s ............................ 1,798.606
Corn, bushels ............................... 1,754,350
Oats, hushe!s ................................2.544,130
Lead, p i g s ...................................... 270,740
Zinc and spelter, slabs................ 275.550
Lumber, cars ................................
7,607
Meats, p ou n d s.............................. 6.322.700
Fresh beef, pounds...................... 558.400
Lard, pounds ................................2,367.700
Hides, p ou n d s............................... 1.893.200

361.010
2,497.200
3.407,300
1,744.000
213.300
455.870
9,647
6,061,400
1.046.700
1.850.300
1.634.600

165,340
504,477
2,369,750
2.814,000
87,830
185,560
13,341
4,935,800
576,800
718,800
3,950.600

282,690
1,606,740
833,110
1,459,180
218,620
740,860
6,467
19,624,800
15,277,500
7,731.600
2,288,200

412,690
1,731,020
1,625,460
1,679,580
205,630
822,320
7.384
22,368,700
19,652,500
6,234,400
2,639,100

292,295
175,910
802,490
1,907,650
139,980
663,330
10,657
25,228,100
18,649,400
8,372,100
4,588,300

BU ILD IN G
Favorable weather and a loosening up in transissued in leading cities of the district indicate extenportation facilities have permitted of pretty consive plans for alterations and repairs, but a slowing
tinuous work on started building projects in both
down in new construction programs. Serious de­
city and country. New enterprises, however, are
lays have been occasioned by labor disagreements
rather backward in getting under way because of
between employers and organized workmen and
the extravagant cost o f materials and labor, and
am ong the several unions. Absolutely no improveuncertainty relative to deliveries. Building permits
ment in the housing situation has developed.
Comparative building figures for June follow :
1920
New Construction
Permits Cost
St. Louis ..................................362 $1,379,930
Louisville....................................168
919.400
Little R o c k .............................. 62
128.700
Memphis.....................................141
625,900

JUNE___________________1919
Repairs, etc.
Permits Cost
395
$481,485
200
83,150
116
73.570
32
33,425

New Construction
Permits Cost
346 $1,489,011
77
391,050
45
334,840
55
406,050

Repairs, etc.
Permits Cost
379 $527,700
162
82,453
57
24,087
182
524,390

P O STAL RECEIPTS
Postal business in this district, as indicated bv
receipts in the five principal cities, for the second
g a rte r of 1920 show a gratifying increase over the

same period in 1919, and a slight decrease under the
first three months this year,

Comparative figures for the periods mentioned fo llo w :
Quarter ended
June 30.
1920

Quarter ended
March 31,
1920

Quarter ended
June 30,
_______ 1919_______

St. Louis .........
........... ...$2,129,201.50
Louisville. . . .
............................
.........
715,015.47
Memphis. . .
.................................
354,541.20
Little Rock .. ..........................................................
160.456.50
Evans\i!te.......... ......................................................................
97,986.77

$2,132,653.45
437,356.15
359,802.76
166,564.46
111 , 154.82

$1,864,531.78
441,005.15
344,574.70
158,588.05
99,788.25

Tota!.......................................... ...................................... $3.457 201 40



$3,207,531.64

$2,908,487.93

L IV E STOCK
strengthening dressed beef m arkets and a contrac­
tion o f supplies. Som e im provem ent in the demand
for feeder cattle is reported, ascribed to the mag­
nificent condition o f pastures and a receding market
for prepared feeds. H ogs have advanced from the
recent low point under light receipts and a healthier
demand.

A n extrem ely irregular trend is noted in the H 'c
stock market. Influences are conflicting and inter­
ests reporting are at variance in their views. A t the
St. L ouis market there was an increase of Z1,4UU
head o f cattle in June over M ay, but a decrease of
63 799 in the number of hogs received. During the
past tw o weeks the cattle trade has been helped by

A s reported by the St. Louis National Stock Y ards, receipts and shipments o f live stock at St.
Louis in June, with com parisons for June, 1919, were as fo llo w s :
Cattle and Calves
1919
1920
85,371
Receipts.................................................. *S0SS0 20,098
Shipments...................................................

Sheep
155? ^ 1319*
93,357 83,361
21,943 ! 0,223

Hogs
1920
241,696 305,495
83,835
! 15,777

Horses and Mules
F55T
!9i9
6,366 11,328
7,40!
8,343

F IN A N C IA L
been fully m oved, banks have heavy burdens to
carry. W heat, which is cou n ted upon as the cash
crop with many agriculturists, has been short in
this district, thus cu ttin g o ff an important source
o f ready m oney for paying debts.
Commercial
banks are discrim inating against loans to certain
unessential industries, and there is a rigid embargo
of funds against all sorts o f speculation.

The demand for money from all quarters con ­
tinues heavy, with the country districts manifesting
relatively the greater needs. W h ile further im ­
provem ent is noted in the banking situation as a
whole over the status of six weeks or tw o months
ago, strain is still evident. T he course o f liquida­
tion has been sluggish and labored, and constant
vigilance on the part of officials o f the Federal R e­
serve Bank and com mercial banks has been neces­
sary to accom plish the results obtained in this
direction. Deposits generally have decreased slight­
ly in face o f the tremendous volum e o f business
transactions, and this fact tends to m odify hopeful
sentiment to which attempts at deflation w ould or­
dinarily give rise. Enorm ous requirements for the
crop m ovem ent and other seasonal operations still
remain to be dealt with, and to this end no stone
is being left unturned to restrict everything but the
most essential borrow ings. In some lines there has
been a gratifying reduction in com m odity accum u­
lations, but elsewhere considerable is left to be de­
sired. In localities where the car shortage is espe­
cially acute or where last season's crops have not

Universal dullness obtains in the market for com­
mercial paper, brokers reportin g a radical slump m
the volum e o f business as contrasted with showings
earlier in the year. C ity banks are not buying at all,
and takings by country institutions are much re­
stricted. B orrow ers desiring large amounts have
been obliged to split their totals into bills of small
denom ination in order to have them placed. The
prevailing rate is 8 per cent, but this lofty and
lucrative figure has failed to stim ulate buying.
Bond houses also report quietness. Several par
ticularly attractive issues recently placed on the
market were readily absorbed, but in the genera
list o f routine offerings the m ovem ent is slow.

IN T E R E S T R A TE S
Between June 16 and July 15 the high, low and custom ary interest rates prevailing in St. Louis,
Louisville and Little R ock, as reported by banks in those cities, were as fo llo w s :
St. Louis
H
L
C

Louisville
H
L
C

Little Rock
C
L
H

7
7

6
6

6
6

6
6

8
8

7
7

6H

6%

8
8
6

8
8
6

8
8
6

7

6%

6H
7'4

7
7H

6
6%

6
6H

6
6%

6H
6H
6H
6M
7
6%

7
7
7
7
7
7

6
6
6
6
6
6

6
6
6
6
6
6

6
6
6
6
6
6

8
8
8
8
8
8

7
7
7
7
7
7

Customers' Prime Commercial Paper:
4 to 6 months.................................................................
Prime Commercial Paper purchased in open market:
30 to 90 days..................................................................

7

6
6

Bankers' Acceptances of 60 to 90 days:
Loans secured by prime stock exchange collateral or
other current collateral:

Cattle L o a n s .............................................................................
Commodity paper secured by warehouse receipts, etc... .7
Loans secured by Liberty Bonds and Certificates____ _ .7



8

7%
8

8
8
7

CO N D ITIO N OF BANKS
The condition of banks in this district at the present time, and changes during the past month,
are reflected in the follow ing comparative statement, showing the principal resources and liabili­
ties of member banks of St. Louis, Louisville, Memphis, Little Rock and Evansville:
June 4, 1920

July 2, 1920

July 3, 1919

Number of banks reporting...............................................
35
U. S. Bonds to secure circulation.................................... $ 16,925,000
Other U. S. Bonds, including Liberty Bonds.................
12,445,000
U g Victory N otes.............................................................
2,706,000
U. S. Certificates of Indebtedness...................................
10,014,000

*
35
$ 16,924,000
12,763,000
2,816,000
4,043,000

36
$ 17,156,000
15,421,000
16,544,000
30,931,000

$ 36,546,000

$ 80,052,000

Total U. S. Securities owned..................................... $ 42,090,000
Loans and investments, including bills rediscounted
with F. R. Bank:
Loans secured by U. S. War Obligations...................... $ 39,102,000
Loans secured by stocks and bonds other than U. S.
Securities ...................................................................... 129,653,000
All other loans and investments....................................... 415,707,000

$ 37,112,000
127.935.000
409.808.000

Total loans and investments, including rediscounts
with F. R. Bank....................................................$584,462,000

$574,855,000

$509,657,000

Reserve with Federal Reserve Bank............................... $ 40,432,000
Cash in vault............................................. .......................... 10,511,000
Net demand deposits on which reserve is com puted... 307,947,000
Time Deposits ..................................................................... 124,138,000
Government Deposits ........................................................
1,924,000

$ 40,340,000
9.811.000
312.892.000
126.446.000
3.031.000

$ 39,235,000
9,544,000
300,388.000
98.145.000
22 688.000

.

D EBITS TO IN D IV ID U A L ACCOUNTS
The volume of individual check transactions in this district during the past month is indicated
by the follow ing com parative table com piled from information received from the clearing houses
in the cities sh ow n :
Debits to individual accounts for week ending:
June 9
St. Louis..................................... ..$141,747,000
Louisville ....................................... 32.717,000
M em phis......................................... 30,202,000
Little R ock.....................................
9,075,000
5.615,000
Evansville.......................................

June 16______________ June 23

June 30

$159,989,000

$151,141,000
38,391,000
^'%7'MN
e'S'XXX
5,466,000

i
35,607,000
9,431,000
5,077,000

4,885,000

F E D E R A L R ESER V E O PERATIO N S
Normal discount rates o f the Federal Reserve Bank o f St. Louis on July 19, 1920, were as foHows.
MEMBER BANKS' COLLATERAL NOTES:

15 days
and less

16 to
60 days

Secured by Certificates of Indebtedness except 5% and 5%%
Certificates .......................................................................................... 5%
.........
Wholly secured by 5%% Certificates of Indebtedness..................... 5%%
.........
Wholly secured by 5 ^ % Certificates of Indebtedness............................................. .........
Secured by Liberty Loan Bonds or Victory Notes............................ 5!%%
.........
Secured by Bills Receivable.................................................................. 6%

61 to
90 days

to 6 months

........
........
........

REDISCOU NTS:
Secured by Certificates of Indebtedness except 5% and 5%%
Certi&cates.......................................................................................... ...5%
Wholly atcured by 5 ^ % Certificates of Indebtedness.....................
WhoHy steered by 5% % Certificates of Indebtedness........................5!^%
Secured by Liberty Loan Bonda or Victory Notes............................
Commercial Paper ..................................................................................... 6%
Agricultural or Livestock P a p e r ........................................................ .. ^
Trade Acceptances ............... .................................................................. 6%
Bankers' Acceptances ................................................................................5 % /"
Bankers' Acceptances purchased in the market, subject to agreement.



3%

^
si/<y

-----

5/^/6
6%
^
6%
S%%

6^
6%

^

^

In June the F ederal R eserv e Bank o f St. L o u is d iscou n ted a tota! o f $178,176,535 o f paper fur
297 d ifferen t m em ber banks, w h ich is a d ecrea se o f $27,302,959 under the am ou n t d iscou n ted in
M a y , and a decrease o f 4 in the n u m ber o f ban k s a cco m m o d a te d .
T h e resou rces and !iabilities*of the F ed eral R e se rv e Bank o f St. L o u is o n Ju ly 16. 1920, as co m ­
pared to a m on th a g o and a year a g o, are sh o w n in the fo llo w in g sta te m e n ts:
RESOU RCES:
June 18, 1920
Gold Coin and Certificates..................................................................$ 2.682.000
Gold Settlement Fund— F. R. Board................................................. 12,091.000
Gold with Foreign Agencies..............................................................
5.242.000

July 16, 1920
? 3.340,000
5.808,000
5,242,000

July 18,1919
$ 3,463,000
21.912.000
...................

Tota! gold held by bank................................................................

20,015,000

14.390.000

25,375,000

Gold with Federal Reserve A gen t.....................................................
Gold Redemption Fund.......................................................................

45.729.000
5,346.000

45.358.000
5.304.000

62,788,000
4,238,000

Tota! Gold Reserves......................................................................

71,09)1.000

65.052.000

92.401.000

Legal Tender, Notes, Silver, etc........................................................

7.276.000

7.351.000

3.822.000

Total Reserves ...............................................................................

78,366,000

72.403.000

96.223,000

BiHs Discounted: Secured by Government War Ob!igations___
BiHs Discounted: AH Other................................................................
BiHs Purchased in Open Market.......................................................

55.250.000
49,424.000
4.283.000

49.002.000
60.672.000
3.071.000

46,636,000
11.602.000
8.823,000

112.745.000

67,061.000

1.153,000
17,308,000

!, 153.000
17.228.000

1.153.000
17.068.000

Total Earning Assets................................................................... !27,4!8,000

Tota! BiHs on Hand.............................. ..................................;.!08.957,O0O
U. S. Government Bonds......................................................................
U. S. Certificates of Indebtedness...................................................

131,126,000

85.282,000

866.000
49.852.000
523.000
634,000

866.000
49.505,000
525.000
285.000

691.000
54.4!0.000
803,000
482.000

Total R esources............................................................................. 257.659.000

254,710,000

237,89!,000

Bank Premises ......................................................................................
UncoHected Items and other deductions from Gross Deposits...
5% Redemption Fund against F. R. Bank N o t e s .........................
AH Other Resources.............................................................................

L IA B IL IT IE S :
Capita! Paid In ......................................................................................
....................................................................................................

4.249,000
3,724.000

4.257,000
5 884.000

3,907,000
2,589.000

Government Deposits .........................................................................
Uue to Members— Reserve Account.................................................
Deferred Availability I t e m s ..............................................................
(Jtner Deposits, including Foreign Government Credits...............

1,332.000
64,437,000
41,336.000
3,007,000

1.792,000
62.297,000
41.788.000
1.608.000

3,755,000
59,951,000
40.749.000
4.950,000

Tota! Gross Deposits................................................................... ! 10,112,000

107,485.000

109,405,000

F. R. ^otes m actual circulation.................................................
127.549.000
F. R^Bank hotes m actua! circulation.............................................
8.823.000
Other Liabilities.............................................................................
3.202,000

127.121,000
8.630.000
1.333.000

105.629,000
15,808,000
553,000

Tota! Liabilities ............................................................................. 257.659.000

254.710,000

237.891.000

Contingent !iabi!ity as endorser on paper rediscounted with or
sold to other p. R. Banks............................................................ 31.400.000
Contingent liability on biHs purchased for foreign correspondents.................




*

(Compiled July 20. 1920)

24.220,000
752 000

..........................