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FEDERAL RESERVE BANK OF ST. LOUIS MONTHLY REPORT ON GENERAL BU SIN ESS CONDITIONS IN FEDERAL RESERVE DISTRICT NO. 8 Released for Publication On and After the Afternoon of July 29, 1922 W IL L IA M McC. M A R T IN , CHAIRMAN OF THE BOARD AND FEDERAL RESERVE AGENT N a majority of instances reports to this bank by leading interests in all lines scattered through the district indicate further improvement in busi ness during the past thirty days. T he rate of pro gress was somewhat less marked than during the preceding month, and in certain localities and indus tries a slight reaction from the recent activity was noted. The usual seasonal slow ing down in produc tion and distribution of certain commodities was emphasized by labor difficulties, and in the areas directly affected by strikes, the retail branch of trade reflected the money losses involved in stoppage of operations and workers’ pay. In those localities there is decided hesitation on the part of merchants in the matter of filling their requirements for goods of all sorts. On the other hand defactions from the list of employed, due to the strikes, was in a large meas ure counterbalanced by the augmented pay rolls of industries which have increased their operations, and by the enormous absorption of workers by har vesting and other agricultural activities. For the first time in many months there has developed a scarcity of laborers, both com m on and skilled, and the trend of wages is upward. This is true particu larly of the iron and steel and building industries. Labor agencies report an unusual demand for skilled artisans and are unable to supply all the requests made upon them for com m on labor. Gen erally throughout the district farmers have been able to obtain all the help required, and are paying about the same wages as at this time last year. Crop prospects in this district continue to furn ish the basis for considerable optimism. W hile there was a slight loss in production outlook as a w hole for the district during June, the average is still high, and with anything like normal weather and grow ing conditions, until harvest, the late crops will make an excellent showing. Private reports to this bank from farmers and country merchants in the typical grain areas indicate decided optimism in the rural communities. W h ile prices are n jt uni form ly satisfactory, the crops this season have been, and are being raised at smaller cost than during the years immediately preceding, and the producers may reasonably count on good profits. T he United States Department of A griculture makes the aver age condition of all crops in the seven states entire ly or partly within the E ighth Federal Reserve D is trict (1 0 0 = 10-year average) 100.3 per cent as of July 1, against 105.8 per cent on June 1, and 94.7 per cent on July 1, 1921. A n almost universal com m ent by manufactur ers and wholesalers is that business has approached I more nearly to normal during the past six weeks than at any time since the war. W hile there has been an upward price trend in a number of import ant commodities, the general tendency is in the direction of stabilization. This is reflected in the disappearance to a large extent of the fears and hesitation of retailers and the public to fill their requirements. The volume of forward orders, while not as heavy as in the past, is steadily increasing. In lines for ordinary consumption, such as dry goods, clothing, groceries and boots and shoes, orders for future shipment show striking gains as contrasted with the same period a year ago, and are vastly larger than for the same time in 1920. Another favorable symptom noted in manu facturing and wholesale is the broader assortments of goods included in current orders. Retailers are filling out their stocks, and purchasing goods which have been relative^ inactive for two years or more. This is true especially of the rural districts, where business has been stimulated by good crop yields and prospects, and the firm prices obtained for farm products. In view of the initial movement of new crop wheat to market, and the generally liberal for wardings of grain, prices of cereals have held strong. The rather sharp decline in wheat, which culmi nated about June 26, was largely recovered during the closing days of that month and early July, a sharp upward reaction taking place after announce ment of the loss in estimated production contained in the Government’s July 1 report. Save in a few isolated instances, production of commodities in the district has not been hampered by the coal strike, but a large number of manufac turers report that their reserve stocks of fuel have been drawn upon heavily and a continuance of the strike for a much longer period will result in serious inconvenience and higher costs. Reserves of public utility companies have also been reduced, and their recent purchases of coal have been at a considerable advance in price. T he general demand for coal since July 1, according to dealers in the district, has been considerably more urgent than at any time since the strike started. The rush to obtain supplies has been accompanied by a sharp upturn in prices, with individual consumers offering a premium over current quotations for prompt shipment. Produc tion of coal for the country as a whole during the thirteenth week of the strike (June 26— Julv 1) was 5,232,000 tons which compares with 9,530,000 tons for the corresponding week in 1921 and 12,064,000 tons in 1920. Unbilled cars of bituminous coal at the mines dropped from 30,730 on April 8 to 1,6 on July 4. The improvement in traffic of railroads operat ing in this district noted in the preceding issue of this report continued steadily through June and the first week o f July. W ith the exception of coal, load ings of which are affected by the abnormal condi tions existing in that industry, the movement of vir tually all com m odities showed gains over the cor responding period last year. Southern carriers re port unusually heavy loadings o f early fruits and vegetables, and all lines indicate gains in live stock, forest products, merchandise and miscellaneous freight. Effects of the shopmen’s strike were being felt during the second week of July, and the m ove ment of trains was interfered with, resulting in temporary embargoes and congestion at many points. The St. Louis Terminal Railway A ssocia tion, which includes in its membership 26 roads operating through this gateway, interchanged 167,610 loads in June, against 165,168 loads in May, 138,690 loads in April, 172,895 loads in March, 150,704 loads in February and 151,093 loads in January. During the first nine days of July 44,704 loads were interchanged against 48,935 loads during the corres ponding period in June. T h e decrease is accounted for by the July 4 holiday. Passenger traffic of the St. Louis roads in June was approximately 6j4 per cent less than in June, 1921, but showed a heavy increase over May, and was larger than any pre vious month this year. A rather sharp falling off in passenger traffic since the strike started is noted by all roads in the district. Autom obile production for the country as a whole made a further gain during June, the output of passenger cars being approximately 10.4 per cent about 13.5 per cent. Reports from 230 dealers greater than in May, and truck production gaining scattered through the Eighth Federal Reserve Dis trict indicate a continuance of the activity noted during the preceding month. Sales of new cars in the country during June were 5^4 per cent larger than in May, while purchases in the city showed a gain of approximately 2 per cent. T he condition of the used car market is more nearly normal than at any time this year. Replacement buying during the past sixty days has been an important factor in the general increase. A marked improvement has taken place in the tire trade, the recent price reduc tions having met with excellent response. Sales of accessories show improvement about on a parity with that noted in automobiles. Reports relative to collections from all sections of the district were more uniformly favorable than at any time in more than tw o years. W holesalers and jobbers in the larger centers of population indi cate conditions normal, with several important interests stating that settlements by their customers in June and early July were as large, proportionate ly, as during any similar period in past years. T o the South payments were stimulated by the advance in cotton prices, and successful marketing of early fruits and vegetables. Collections in the retail branch of distribution are unusually efficient for this season of the year. Answers to 327 questionnaires addressed to representative interests in various lines throughout the Eighth Federal Reserve District asking for data relative to collections show the fo l low ing results: 6.1 per cent excellent; 48.8 per cent g o o d ; 41.2 per cent fair and 3.9 per cent poor. Commercial failures in the 12 Federal Reserve Districts during the months of June and May, with comparative figures for June, 1921, as compiled by Dun’s, were as follow s: District Kansas City, Tenth....... Dallas, Eleventh.............. San Francisco, Twelfth.. June 1922 150 273 . 57 136 137 147 230 125 79 86 114 206 1,740 NUMBER May June 1922 1921 186 136 419 232 87 71 173 98 82 169 179 130 140 231 102 117 31 79 73 70 105 84 120 166 June 1922 $ 4,838,902 7,642,247 1,573,360 3,521,377 2,183,739 2,041,013 6,369,831 1,525,233 1,307,894 2,149,987 2,481,679 2,557,188 L IA B IL IT IE S May 1922 $ 3,476,746 16,605,233 1,568,262 3,359,073 2,544,963 3,784,262 4,254,855 1,750,033 1,342,341 1,294,560 2,175,351 2,247,207 June 1921 $ 2,546,879 4,736,685 1,939,408 4,744,487 1,478,512 3,522,511 4,476,283 1,974,278 454,553 4,764,647 2,588,787 1,412,345 1,320 $38,242,450 $44,402,886 $34,639,375 1,960 M A N U F A C T U R IN G A N D W H O L E S A L E B oots and Shoes — Results obtained in the boot and shoe industry during the period under review indicate a continuance of the steady improvement o f recent months. June sales of the 11 reporting interests were from 8 to 1 6 ^ per cent heavier in dollar value and from 31 to 50 per cent heavier in number o f pairs than during the same month last year. June sales compared with those in M ay show gains of from 3 to 14 per cent. Orders received during the first tw o weeks o f July were extremely heavy, buying being stimulated by the firmer mar ket. Some scattered price advances were reported, and several o f the leading interests indicate that a general advance during the next thirty days is con templated. The advance in finished goods is due to higher prices asked for leather and hides. Present prices o f boots and shoes average from 10 to 18 per cent less than last year. One leading interest says that based on 1913 prices as 100, its price average increased to 276, and in April this year returned to 137. Factory operation in the district was at from 92 to 100 per cent of capacity. Clothing — Reports of the 23 leading interests indicate sales during June ranging from 23 per cent less to 12 per cent larger than in the same month in 1921, and from 13 per cent less to 8 per cent larger than in May. Aside from a tendency toward higher prices, there was no change in the general situation during the period under review. A large m ajority o f the houses reporting state that their orders for forward shipment are well in excess of the same time last year. Iron and Steel Products — Mills, foundries and machine shops report a continued flow o f new busi ness, and a number of important interests have booked all the orders they can fill during the next three months. B uying of finished and semi-finished iron and steel goods by the railroads during June was on a large scale, and the same was true o f all ferreous materials used in building. T he melt of pig iron, according to figures o f the reporting inter ests, increased approximately 5)4 per cent in June over May. Prices o f No. 2 Northern pig iron (1.75 to 2.25 per cent silicon) advanced to $24 @ $25 per ton, but Southern o f the same grade held steady at $18.50 to $20. Stove manufacturers, 7 interests reporting, showed June sales from 23 to 51 per cent larger than a year ago, and about steady with the preceding month. Stove plants are experiencing difficulty in obtaining moulders. Five farm imple ment manfacturers and distributors reported gains of from 5 to 19 per cent during June over the same month last year. Boiler makers, railroad supply interests, manufacturers o f architectural iron and machinery builders indicate substantial gains in June business over that of the corresponding month last year. Hardware — Save in the areas directly affected by the coal miners' strike, steady improvement is noted in the hardware business. Sales during June of the 12 interests reporting showed gains of from 15% per cent to losses of 40 per cent over the same month in 1921. T he losses were confined to stores in the mining sections. Orders received during the first tw o weeks of July were well in excess of the cor responding period a year ago. A ll sorts o f hard ware, tools and implements used on farms are m ov ing better than at any time in m ore than tw o years. A ll firms reporting com m ent on their increased sales of shelf hardware, enamel ware, and other goods used in the household. Electrical Supplies — A ccordin g to the five reporting interests, business is steadily im proving as a result o f new building and renewed confidence in values. Prices are steady with the preceding month, but about 33-1/3 per cent below last year. A good demand is noted for seasonal goods, such as fans and ranges. Radio sets and supplies are in excellent demand. Flour — Production o f 11 leading mills in the district during June was 223,428 barrels against 279,970 barrels in M ay, 252,868 barrels in April and 239,428 barrels in March. T hroughout June the demand from all sources was quiet. D om estic buy ers were taking only what they required for imme diate distribution, and the export inquiry was slow. Contracting for future requirements was unusually light. Since July 1, however, considerably more interest has been manifested, both by the domestic and export trade, particularly Latin American countries. Mill operation during the period under review was at about 50 per cent of capacity. Groceries — General improvement throughout the district, particularly in the rural sections, is indicated in reports from 18 reporting stores. These interests show sales during June ranging from 20 per cent to 13J4 per cent larger than for the same month in 1921. The declines are accounted for mainly by seasonal considerations, and conditions peculiar to certain sections. The trend of prices is upward, and the volum e of future orders continues to improve, and now averages close to 28 per cent heavier than last year for the reporting stores. Furniture — June sales of the 11 reporting interests were from 2 per cent to 14^4 per cent larger than for June, 1921, and 12 per cent less to 8 per cent larger than in May this year. Prices under went no change during the period under review, the upward revisions looked for on July 1 having failed to materialize. Due to the advance in certain raw materials, notably lumber, mirrors, and iron and steel, manufacturers say that higher quotations on finished goods are likely during the next sixty days. There is a fair demand for office equipment but at the moment activity centers chiefly in house hold furniture. Plant operation in the district was at from 82 to 85 per cent of capacity during the period under review. Drugs and Chemicals — A ccording to the 7 reporting interests, June sales were steady to 2 per cent larger than in May, and from 9 per cent less to 12 per cent larger than for the corresponding month a year ago. T h e general comment is made that buying is of a more normal and satisfactory character than has been the case in many months, and includes a larger percentage of future orders. Prices are firm, and tending upward. Seasonal goods are m oving in large volume, and three of the leading houses report sales of soda fountain sup plies in June and early July the largest ever recorded. L u m b er— Since about June 1 the demand on the mills for building lumber has been declining and is now on the usual midsummer basis. Buying by the railroads and car shops held up in excellent shape until the beginning of the shopmen’s strike, this activity being due to extensive track and bridge repairs, and to the large number of bad order cars. T he unusually heavy movement of lumber from mills during M ay was exceeded in June, mainly as a result of an easier car supply and anxiety of wholesalers to market their recent heavy purchases at the mills. June receipts at St. Louis were 20,183 cars, against 19,518 in M ay and 12,432 cars in June, 1921. In face of the large amount of transit lumber thrown upon the market, prices have held their own, the yellow pine list being the only section showing weakness. Edge grain flooring, partition and dimen sion have held strong, and the price o f western lum bers were steady during the period under review. T he hesitation in buying incident to the labor trou bles has not thus far disturbed hard w ood values, and the same holds true relative to red and yellow cypress. Industrial P ow er Consumption — Public utility companies in the four leading cities of the district report large increases in the consumption of electrical power by industrial concerns during June as com pared with the same month of last year. Three of the four reporting cities show a nominal increase for the current month over the preceding one, Memphis alone reporting a decline. The comparative figures fo llo w : Representative Customers June, 1922 St. Louis.... 65 10,816,177 k. w.h. Memphis .... 31 800,700 “ Little Rock 11 769,494 “ Louisville .. 81 2,282,724 “ Total.. 188 14,669,095 “ May, 1922 10,474,297 k. w. h. 975,360 “ 720,932 “ 2,206,411 “ 14,377,000 June, 1922 comp, to May, 1922 + 3.3% -17.9% + 6.7% + 3.5% “ + 2.0% June, 1922 comp, to June, 1921 + 2 9 .5 % + 2 3 .1 % + 2 7 .3 % + 4 4 .5 % June, 1921 8,354,460 k. w. h. 650,640 “ 604,581 “ 1,579,162 “ 11,188,843 “ + 3 1 .1 % R E T A IL W hile reports from retailers generally through the district indicate satisfactory and steadily improving conditions, actual sales during the period under review were slightly under those o f the preceding month, also o f the corresponding period a year ago. Decreases noted in the May-June comparison are due largely to seasonal considerations, while the losses as compared with a year ago may be accounted strikes and the counted for lor bv by the tne coal coal and and railroad railroad strikes, and tne fact that the weather has not been auspicious for the movement o f certain goods. Clothiers report that there is still a decided disposition to economize, and discriminate in favor o f medium and low price goods. D uring the latter part o f June and early July there was a marked picking up in sales of both men’s and w om en’s garments. Jewelers report gains in their June sales over those in May, but losses of from 8 to 10 per cent as compared with June, 1921. Hardware dealers in the country are experiencing the best demand in several years, with all farm supplies especially active. In the cities retail hardware sales are holding up well, especially of goods for household use and seasonal sporting goods Stationers and P»nters report no change in conditions as compared days, though the form er with state the that preceding the volumethirty o i catalogue orders for fall is well in excess of a year ago. Competition in both these lines continues keen, and the margin 0f profit small. Sales o f furniture houses were in the main larger than a year ago, with the increase being represented largely by dining room and bedroom sets. Collections are generally satisfactory, though some backward spots are noted. Department Stores — T h e condition of retail trade during June, 1922, in the leading cities of this district is reflected in the follow in g statement, compiled from reports of 20 representative department stores: (Percentages) St. Net Sales: Louis June, 1922, compared with June, 1921___________ - 2.9 Period January 1 to June 30, 1922, compared with same period in 1921_____________________ - 9.4 Stocks at end of June, 1922: Compared with same month in 1921________ - 5.8 Compared with stocks at end of May, 1922___- 1.5 Average stocks on hand at end of each month since January 1, 1922, to average monthly sales during same period.......................................355 Outstanding orders for June, 1922, compared with previous year’s purchases______________ 6.3 Louisville - 6.7 Memphis + 13.1 Little Rock -13.4 Evansville -16.7 Quincy + 5.9 8th District - 6.0 - 7.6 - 7.4 -18.2 -12.7 -11.2 - 9.6 -16.1 - 9.3 -15.5 -19.9 + 1 0 .4 - 5.7 -14.7 - 3.3 - .7 - 1.9 - 9.0 - 5.8 585.6 659.9 391.7 678.7 497.3 440.7 2.8 4.5 3.9 1.3 6.4 5.4 A G R IC U L T U R E H arvesting o f spring wheat in this district is completed, and threshing is in progress over a broad area. Early returns show rather uneven conditions, some reports indicating heavy yields with quality high, while elsewhere yields are lower than expected, and quality disappointing. T he chief source o f complaint appears to be the light w eight of the grain, due to premature ripening. Missouri, the principal wheat area o f the district, will produce 4. t Ar\ >?nr\ nnn u u i • 4. mnnnn approximate y 40,700,000 bushels, against 34,390,000 bushels in 1921. There are som e complaints o f wet harvest weather, but this will hardly reduce the quantity, the w orst result being a slight reduction in quality. W heat production in all seven states of the district will be larger than last season. Corn during the period under review has made good progress. The long dry spell was brdken by abundant rains late in June, and since that time grow ing conditions have been ideal. Stands are good, except in spots where the dry weather held back germination, and where chinch bugs and worm s destroyed the young plants. Based on the Government’s July 1 estimate, production of corn ^n# the Eighth Federal Reserve District will be slightly under the 1921 total. Reports relative to the oats crop are genera y P °°r t ° fain A nu n u su ally unfavorableplantm gsea?on res^ d in f favofah7e' m g conditions since seeding have not been iavorable. 1 / Missouri, for example, only a half crop is indi cated; 21,913,000 bushels against 42,960,000 bushels in xg2\. In many sections the crop is practically a failure, and has been pastured or entirely abandoned. Total production for this district is estimated at 40,373,000 bushels against 59,090,000 bushels last year, M ay crops have im proved in marked degree since the late June precipitation, and pastures are generally in g ood condition. T h e yield of hay in this district is expected 7,467,000 tons against 6,934,000 tons last year. Fruits, vegetables and small crops generally continue the excellent promise of the tw o preceding months. Shipments to date this season from many important fruit and truck producing counties are the largest on record. Potatoes are making good pro gress, and in the South indications point to an unus ually heavy yield of sweet potatoes. There is an increased acreage of rice in Arkan sas, and the crop is reported in excellent condition. W ith the exception of scattered complaints of hog cholera from Indiana and Illinois, live stock is reported in good condition. Cotton made good growth under improved weather conditions. There were some complaints of too much rain, and too low temperatures at night, but in the main the crop is progressing well. Fields as a rule in this district show the results of intensive cultivation, and are clean and clear of weed growth. Numerous reports are received of the presence of boll weevils, but is is impossible at this time to determine the extent of damage wrought by these pests. Alm ost universally favorable reports are received relative to the tobacco crop. In both the burley and dark tobacco districts farmers had an exceptionally auspicious season for planting, and have had enough dry weather follow ing rains to pro perly cultivate their fields. The acreage planted is approximately 25 per cent larger than last year. The U. S. Department of Agriculture estimates Kentucky’s 1922 acreage of all types of tobacco at 558,000 acres, an increase of 45 per cent over 1921. The U. S. Department of Agriculture, in its report as of July 1, 1922, gives the condition of winter wheat, oats and corn in the states o f this district as follow s: W HEAT C O N D IT IO N July 1 1922 10 yr. av. F O R E C A S T 1922 P R O D U C T IO N ’ from condition July 1— June 1 Illinois ........... 83 Indiana ........... 83 Kentucky ...... 83 Missouri ........ 79 Tennessee ...... .74 United States..77.0 76 76 82 78 82 81.0 Bu. 47,259 32,046 7,553 40,715 4,689 569,276 Bu. 51,613 33,977 8,644 43,754 5,196 607,333 Illinois ............. 63 Indiana .......... .52 Missouri ........ 50 83 83 82 110,767 34,027 21,913 132,754 47,912 28,068 % % P R O D U C T IO N C O M P A R IS O N S * 1921 5 yr. av. Dec. 1916-20 Est. Bu. Bu. 42,638 41,201 24,144 33,668 6,340 8,959 34,390 39,479 4,500 6,077 587,032 565,905 P R IC E P E R BU. July 1 1922 1921 Cents 102 103 119 102 123 Cent; 115 114 126 113 133 33 34 42 33 30 42 O A TS 121,741 45,072 42,960 181,914 71,070 48,047 CORN A C R E A G E 1922 % of 1921 Acres* C O N D IT IO N July 1 1922 10 yr. av. % 2,543 77 Arkansas ........ 93 8,819 84 Illinois ______ 98 82 101 4,765 Indiana _____ 101 Kentucky ____ 101 101 3,241 91 Mississippi . 90 2,855 81 Missouri ........ 97 5,913 82 Tennessee . 92 3,235 83 *In thousands— i. e, 000 omitted. % 83 85 84 87 81 84 86 F O R E C A ST 1922 P R O D U C T IO N from July 1,1921 Condition Dec. Est. Bu.* Bu* 47,387 60,148 303,726 305,966 170,749 169,848 82,150 94,378 57,096 51,339 160,006 182,880 80,552 90,713 P R O D U C T IO N C O M P A R IS O N S 5 yr. av. 1916-20 Bu* 48,167 327,245 182,569 97,152 55,702 176,224 86,490 PR ICE P E R BU. July 1 1922 1921 cents cents 87 94 55 53 56 50 83 79 87 105 65 58 80 83 Range of prices on typical products in the St. Louis market between June 15 and July 15, with closing quotations on each o f these dates, and on July 15, 1921: July wheat...................... Per bu. a September wheat.......... a December wheat.......... a July corn....................... . it September corn ............ if December corn............ ft July oats_____________ tl September oats............. No. 2 red winter wheat “ it No. 2 hard wheat.. “ No. 2 corn..................... . if No. 2 white corn.......... it No. 2 white oats.......... Flour: soft patent ...Per bbl. a Flour: spring patent Middling cotton............. Per lb. Hogs on hoof................. Close June 15 $1.07 1.08% U 2& .6054 .63*6 .63% .35 1.17 @ .60 @ 5.75 @ 6.90 @ 8.50 @ 1.18 1.10 .58*; .60 .3554 6.75 7.25 .21H 10.75 High $1.1554 1.1651 1.19 .64 .67 .66% .38j4 .3954 1.23 1.22 .65 .65 .40 54 6.50 8.05 .23% 11.20 Low ______ Close July 15 $1.06% $1.1154 i.o 7y2 1.11% 1.10% 1.14% .64 .59% .62% .64y2 .61% .61% .36 .35% .35 .37 1.14 @ 1.16 1.0 754 1.11 1.15 @ 1.16 .59 .64 .6oy2 .6454 .40 y2 .36 5.50 5.50 @ 6.25 6.85 7.40 @ 7.70 .23 .22 8.00 @ 10.90 8.00 Close July 15, 1921 1.29 @ 6.25 @ 9.00 @ 8.00 @ $1.28}4 1.29% 1.33% .58 .5954 .58% 3954 .41 1.33 1.30 .63 .6454 .3954 6.75 9.65 .11 11.00 COM M ODITY M O V E M E N T Receipts and shipments of important commodities at St. Louis during June, 1922and 1921, and May, 1922 as reported by the Merchants’ Exchange, were as follow s: June, 1922 323,950 Flour, barreles.......................... Wheat, bushels........................ 1,570,975 Corn, bushels............................. 2,613,000 Oats, bushels............................ 2,620,800 Lead, pigs..................... ............. 404,430 Zinc and Spelter, slabs............ 351,030 Lumber, cars............................. 20,183 Meats, pounds................... .......19,469,500 Fresh beef, pounds.................. 147,000 Lard, pounds............................... 3,258,400 Hides, pounds........................... 6,314,800 Receipts May, 1922 June, 1921 348,210 371,050 2.558,400 2,982,975 2,870,352 1,917,500 2,603,625 2,356,000 406,880 240,870 338,320 67,820 19,518 12,432 20,510,300 24,388,700 .................. 136,500 4,447,800 3,184,600 7,264,700 4,757,600 June, 1922 453,340 1,785,110 2,197,070 2,278,610 226,120 295,630 14,560 27,246,800 20,247,700 8,045,800 9,565,100 Shipments May, 1922 443,460 2,284,320 2,145,420 1,959,760 217,110 308,040 14,392 28,389,100 19,205,100 8,010,000 8,849,700 June, 1921 403,320 2,439,060 1,791,530 1,892,075 128,320 113,590 9,840 25,433,400 23,360,000 7,537,500 7,444,900 L IV E STOCK M O V E M E N T A s reported by the St. Louis National Stock Yards, receipts and shipments of live stock in June, 1922 and 1921, and May, 1922, were as follow s: Receipts_____ ______ June, 1922 May, 1922 June, 1921 Cattle and Calves...................... 113,647 55,939 86,580 Hogs ............................................. 298,492 337,158 275,494 Sheep ................. ..........................117,068 49,635 119,163 Horses and Mules...................... 2,106 3,758 2,233 June, 1922 67,652 197,799 50,625 2,186 Shipments__________________ May, 1922 June, 1921 47,095 48,112 219,866 158,437 16,205 53,555 2,922 4,009 LABOR SITU ATIO N T he labor situation in this district is reflected in the follow ing table, compiled from reports received from 200 leading employers in 20 of the largest cities in the district: Men June 30, 1922.................................109,365 May 31, 1922...................................104,522 June 30, 1921................................. 98,568 Women 24,217 16,704 22,516 Wage Earners Total Normal 133,582 157,684 121,226 147,352 121,084 157,684 Pay Roll $9,947,894.52 8,837,054.29 9,919,193.92 % of Normal -15.3 -17.7 -23.2 From the above tabulation it will be noted that the number of employes of the reporting interests increased 12,498 or 10.3% (men increased 10.9% while women increased 7.5% ) between June 30, 1921 and June 30, 1922. On June 30, 1921 the number was 23.2% under normal and on May 31, 1922 the total was 17.7% under normal as compared with 15.3% on June 30, 1922. W ages figured on a semi-monthly basis, increased .3% between June 30, 1921 and June 30, 1922. BUILDING A small decline was recorded in the number and amount of building permits issued in June by the five leading cities of the Eighth Federal Reserve D istrict as compared with May, but heavy gains both in number and amount were made over the corresponding month last year. Generally through the district activity in the building industry continues at the high levels noted in the tw o preceding issues of this report. In some sections, mainly in the South, work is being retarded by delayed deliveries of materials. In the large cities contractors and builders complain of a dearth of skilled workers in the building crafts. Inter ests manufacturing and distributing building materials report June sales the largest for any month this year. One leading producer of fire clay products gives the volume of his business, expressed in percentage of normal, as 130 per cent in June, against 90 per cent in May and 37 per cent in June, 1921. Production of Portland Cement in June for the country as a whole was 11,245,000 barrels, the highest for any single month this year. Comparative figures for June in leading cities of the district fo llo w : St. Louis.. _____________ New Construction ________ Permits Cost 1922 1921 1922 1921 602 780 $2,068,140 $1,895,299 252 219 1,407,350 910,500 405 274 1,284,720 1,040,184 51 69 183,574 184,600 84 43 281,030 76,930 _____________ Repairs, etc.________________ Cost Permits 1922 1921 1922 1921 $368,615 $254,770 530 481 157 163 170,600 97,150 34 37 19,920 21,480 132 157 44,245 47,965 82 72 23,545 3,233 June May t April 1,572 1,727 1,553 935 1,228 915 1,207 1,015 962 $5,224,814 6,890,004 5,400,263 $4,107,513 2,421,647 1,983,911 ' 910 1,114 1,164 $630,645 553,851 676,421 $420,868 433,189 419,646 POSTAL RECEIPTS Quarter ended June 30,1922 St. Louis................. .................... .................... ............................... $2,430,695.47 Memphis ........................................................................................ 378,275.73 Little Rock...................................................................................... 161,204.98 Evansville ..................................................... ................................ 123,107.21 Total.............................................. ........................................ $3,093,283.39 Quarter ended March 31,1922 $2,471,204.81 360,445.17 172,713.80 119,883.63 $3,024,247.41 Quarter ended June 30,1921 $2,123,968.85 335,244.84 157,844.53 98,444.74 $2,715,502.96 F IN A N C IA L T he past thirty days were marked by further strengthening in the general financial position, and banks in this district are in better shape now to take care o f all demands made upon them than at any time since the outbreak o f the great war. Loanable resources o f the commercial banks are at a high level, and with the demand only moderately the trend o f interest rates continued easier. There was a sharp decrease in business failures, both as compared with the preceding month and a year ago, and a f u l l e r improvement in the credit situation was noted in the South. The demand for financing crops is being felt to some extent but to date loans for this purpose are relatively light as compared with former seasons. Banks in sections where early fruits and vegetables are important crops report heavy liquidation o f loans, due to the large production and successful marketing o f these products. In the large centers, particularly St. Louis and Louisville, there has been some liquidation by large wholesale and manufacturing interests. Some improvement in the commercial demand was noted in the immediate past, and recent advices received by financial institutions from certain o f their customers indicate a further broadening in the demand during the next few weeks. Between June 15 and July 15 the net deposits of the Federal Reserve Bank o f St. Louis decreased $996,000, the decrease being partially accounted for by the fact that St. Louis was reclassified as a reserve instead of central reserve city effective July 1. Federal Reserve notes in circulation decreased $841,000, while bills discounted for member banks decreased $1,689,651. The total reserve carried against combined Federal Reserve note and deposit liabilities decreased .9 per cent, standing at 65.1 per cent on July 15. Acceptances — N o change from the dull conditions obtaining in the market for acceptances during the past tw o months took place during the period under review. Abundant money throughout tjie colmtry has resulted in seriously disturbing the gupply of bankers acceptances, the volum e originating in all districts being insignificant. The jQW rate Q£ jn^ereS|. restricting the market. Purchases of acceptances in the open market b y this bank in June tQtaled $6 004,920, a gain of $2,038,672 Qver the preceding month. . . n i . 1 i Commercial Paper - Brokers report a good de mf d for commercial paper and a large volum e of sales which was prevented from being still greater only by lack of offerings. City banks are the heavibuyers some institutions which have not been in the market for several years now purchasing Coun * 7 banks are buying to some extent,_but the low [ate of interest and other calls for their funds tend to hoIdr dow « their takings. Rates quoted by brokers range from 4 to 4^4 per cent. Bonds — N o change worthy of note has taken place in the investment bond market during the past thirty days. Some temporary stimulation was felt from the July 1 interest and dividend disbursements. T he demand centers in high grade Corporation bonds, municipals and Government obligations. The demand for and prices of all Liberty bond issues is well sustained. Interest Rates — Between June 15 and July 15 the high, low and customary interest rates prevailing in St. Louis, Memphis, Louisville and Little Rock, as reported by banks in those cities were as follow s: St. Louis H L C Louisville H L C Memphis H L C Little Rock H L C Customers' Prime Commercial Paper: 4*/2 5# 6 5 6 6 6 6 7 6 30 to 90 days.............................................................. 6 4 to 6 months............................................................ 6 4y2 5y2 6 5 6 6 6 6 8 6 Prime Commercial Paper purchased in open market: 30 to 90 days...................... ....................................... 6 4 5 4y2 4% 4y2 .................. 5 4y2 5 4 to 6 months............................................................ 5y2 4 4y2 4T / 2 4% 4y2 ......................................... Loans to other banks....................................................... 6 4J / 2 $y2 6 5 6 6 6 6 7 6 Bankers’ Acceptances of 60 to 90 days: Endorsed ................................................................................................................................................................. Unendorsed .............................................................................................................................................................. Loans secured by prime stock exchange collateral or other current collateral: 6 5 6 .................. 8 6 7 Demand ................................................................... 6 3H Sy2 3 months .............................................................. ....6 4/2 5/2 6 5 6 6 6 6 8 7 3 to 6 months............................................................ 6 4l/ 2 S y 6 5 6 6 6 6 8 7 Cattle Loans..................................................................... 7 Sy2 6 ............................................ 8 7 8 Commodity paper secured by warehouse receipts, etc.... 6 5 6 6 6 6 6 5 6 8 7 Loans secured by Liberty Bonds and certificates........... 6 By 6 5 6 6 6 6 8 6 7 6-7 6-7 7 7 7 7 Savings Deposits — The changes in the number of savings accounts and the amount of savings depos its, exclusive o f postal savings deposits, since a month ago and a year ago, as reported by the largest mem ber banks in the leading cities of this district, are shown in the follow ing table: St. Louis....... . Louisville ..... Memphis ...... Little Rock.... Evansville ..... Total Number Banks Reporting 12 7 7 5 4 35 July 5, 1922 Number Amount Savings Savings Deposits Accounts $ 65,348,000 238,640 134,258 20,892,000 55,896 14,880,000 25,194 6,097,000 20,657 8,339,000 474,645 $115,556,000 June 7, 1922 Amount Number Savings Savings Deposits Accounts $ 64,697,000 236,781 20,810,000 135,193 14,690,000 55,668 6,006,000 26,130 8,138,000 20,679 474,451 $114,341,000 July 1, 1921 Amount Number Savings Savings Accounts Deposits 224,941 $ 61,680,167 118,514 17,984,618 13,150,592 54,950 5,520,262 23,098 20,120 8,007,576 441,623 $106,343,215 Condition of Banks — T he condition of banks in this district and changes since a month ago and last year, are reflected in the follow ing comparative statement showing the principal resources and liabilities of member banks in St. Louis, Louisville, Memphis, Little R ock and Evansville: July 12, 1922 37 June 14,1922 37 July 13,1921 37 $ 15,666,000 ; 122,988,000 270,990,000 $ 16,145,000 121,684,000 271,929,000 $ 16,924,000 118,682,000 274,790,000 Total loans and discounts.. Investments: U. S. Bonds ................ U. S. Victory Notes.... $409,644,000 $409,758,000 $410,396,000 28,718,000 2,233,000 9,765,000 9,366,000 81,491,000 27,836,000 2,422,000 11,238,000 8,297,000 81,928,000 25,571,000 2,010,000 m 1,000 1,237,000 67,175,000 Total $131,573,000 34,921,000 6,841,000 319,500,000 162,397,000 4,131,000 1,562,000 2,034,000 $131,721,000 40,675,000 7,231,000 318,100,000 160,508,000 9,414,000 2,722,000 2,658,000 $ 96,504,000 37,618,000 7,580,000 286,941,000 142,236,000 7,568,000 38,934,000 14,157,000 Number of banks reporting........................................... Loans and discounts (excluding rediscounts): Secured by U. S. Govt, obligations..................... All other loans and Time deposit Government Debits to Individual Accounts — The following table gives the total debits charged by banks to check ing accounts, savings accounts and trust accounts of individuals, firms, corporations and U. S. Government and also certificates of deposits paid, in the leading cities of this district during the past month and cor responding period a year ago. Charges to the accounts of banks and bankers are not included. These figures are considered the most reliable index available for indicating actual spending by the public during the period which they cover: Debits for four weeks ending.. St. Louis, M o................................. July, 1922 comp, to June, 1922 + 9.4% + .5% - 1.6% - .2% + 46% +22.3 % -10.1% - 1.1% +21.6 % - 7.0% -12,4% uly 12 1022 133’,273’,000 Memphis, Tenn.. 93,199,000 34,198,000 East St. Louis & Nat. Stock Yards, Ill 37,787,000 Evansville, Ind....................................... 31,526,000 11,662,000 Quincy, 8,528,000 4,828,000 Greenville, Miss 3,286,000 Helena, Ark........ 3,551,000 Fort Smith, Ark.. 9,909,000 $513,248,000 132,527,000 94,734,000 34,805,000 36,140,000 25,776,000 12,986,000 8,627,000 3,972,000 3,533,000 4,055,000 $448,166,000 92,395,000 72,690,000 33,862,000 31,530,000 22,819,000 11,062,000 8,411,000 July, 1922 comp, to July,1921 + 25.3 % + 44 .2% + 28.2 % + 1.0% + 19.8% + 38 .2% + 5.4% + 1.4% F E D E R A L R E S E R V E O P E R A T IO N S In June the Federal Reserve Bank of St. Louis discounted $90,922,694 of paper for 249 member banks, which is an increase of $25,483,337 over the amount discounted in May and a decrease o f 128 in the number of banks accommodated. Acceptances purchased in June amounted to $6,004,920, an increase of $2,038,672 over the preceding month. The discount rate of this bank remained unchanged at 4'/2 per cent.. Changes in the assets and liabilities of the Federal Reserve Bank of St. Louis since a month ago and last year are shown in the following comparative statement (in thousands of dollars) : R E SO U R C E S: L IA B IL IT IE S : July 12, 1922 Gold Reserves................. $ 72,229 Legal tender notes, silver, etc..................... 13,541 June 14, 1922 $ 74,193 July 13, 1921 $ 74,533 16,665 12,752 Total Cash Reserves..$ 85,770 Discounts secured by U. S. 5,722 Govt, obligations......... Discounts otherwise secured or unsecured. . 11,211 Bills bought in open market................ 13.856 U. S. Govt, securities... . 25,739 $ 90,858 $ 87,285 6,430 31,133 50,339 9,597 31,605 136 13,209 Total earning assets..$ 56,528 Uncollected items......... 32,557 3,464 Other resources............... $ 59,897 33,715 3,751 S 94,817 30,640 1,642 $188,221 $214,384 Total Resources......... $178,319 12,265 July 12, 1922 Capital paid in............. $ 4,769 June 14, 1922 $ 4,708 July 13, 1921 $ 4,512 Surplus ......................... 1. 9,388 9,388 9,114 Deposits ......................... 61,235 67,849 62,210 F. R. notes in circulation ................. 67,717 68,694 101,750 F. R. Bank notes in circulation ................. 3,343 3,348 6,259 31,036 33,297 28,648 831 937 1,891 liabilities......... $178,319 $188,221 $214,384 66.5% 53.2% Deferred Availability items ........................... . Othed Total liabilities........... Combined reserve ratio.. 66.5% (Compiled July 19, 1922)